290 five. The nose to the left, the nos to the left, thunder 15. The nos habit. Have it. We now come to the amendment 14 to cause one being made. To move. That a minute 14 to cause one being made. Say aye. Of the contrary, no. The ayes have it. Clause one as has been amended. Caroline i think we are still hearing as to whether they will put the rest of the amendment to the vote. Many will feel it will not be. The government has won this. The opposition has lost. Huge debate over three days difference. Into thee deeper action with our markets reporters from equities, bonds, currencies, and commodities. Im taking about record highs. Even though we did see a tat a small down take for stocks, or so for the nasdaq. For the s p 500 and the socks in twoicular, this shows those indexes. The nasdaq in white. An alltime high yesterday. Not doing that today. We can see stocks trying to rise out of the range you were talking about. It does appear encouraging despite todays consolidation. Some might argue that is healthy consolidation. Pg e, taking a look at which is rising as high as 30 as a judge orders mediations between the utility and wildfire victims. These are wildfires that happened in 2017 and 2018 that were blamed on pg e equipment. Facing 30eady million in liabilities. The wine country fires could cause even more fires against bankrupt utility. The current blazes have already damaged about 25. 4 billion in property according to chuck weston. Pg e announced another round of blackouts. 38 of the 33 counties are affected. Hundreds of thousands of evacuations across the state. Smart ment may have may have smart two small fires. Firefighters not determined the cause of two blazes. And taking a look at shares of amd. There is some really bullish sentiment heading into the Earnings Report even though shares are down slightly. Youre getting a big release from the seven nanometer project. That has helped all of the increasing bullishness already. Analysts have said the positives have outweigh the negatives in this set up for the Earnings Report. Come and take a look at a chart here. We talk about bullish sentiment, it is here. Basically about a month or so. Your of 14 so far. Atare waiting for a look sales of the new high end processor. Taking advantage of the intel pcu shortages that are fueling andy. Caroline we await those numbers. We have had numbers from electronic arts. All hopes on the apex legends new game. Would see a 2 rise. They have exceeded that. Revenue comes in further second fiscal quarter. The thirdquarter adjusted revenue, 1. 9 4 million. Ahead of expectations. Fullyear expectations raising not as high as the market would have hoped. Up 5 . Scarlet another Company Moving higher in the afterhours trade is the biotech company, amgen. Thirdquarter revenue and profit topping analyst estimates. It boosted its fullyear forecast. It now sees the fullyear earnings anywhere from 14 and . 29 to 14. 45. Analysts were looking for 14. 41 average. Oreos. E lets talk lets talk dairy milk. Were seeing thirdquarter adjusted earnings. Of . 60. He estimate better than expected growth. They see organic revenue, not organic food. Excluding m a, up 4. 2 . Better than the previous estimates. We will be speaking to the chief executive tomorrow. Scarlet we just want to update you on what is going on in the u. K. Caroline will be speaking with the ceo of mundt police tomorrow morning. More developments in the u. K. Parliament has become voting on the early has become voting early on the election bill. Theyre going to vote on the general election bill. This would be for the state of for november 12. Luke. With us is sarah, or to begin . Health care was front and center today. If you look at the dow industrial, the best performers were i want to get your take on how you think about health care in this environment. We know it has become sensitive given that different nominees are talking about health care and what they want to do. Is it a defensive sector, a growth sector . We look at it as defense of growth. In of the things the market is not pricing in yet are the different outcomes we can have with the elections and the candidates that are gaining in the polls. When we looking at health care companies, look for those with strong pipelines. Those who can continue to grow their product line. You need to be careful of the risk that can increase in the sector. It could be a buying opportunity. Caroline we are going to have some more breaking news. Mattel toymaker coming out with funds. By 109taxes understated million in 2017. We have the cfo to be leaving the company. We have transitions in mattel in terms of the chief Financial Officer and announcement their income tax was understated. There are not that is linked to the cfos departure, we will have to see. We are seeing mattel complete an internal probe of a whistleblower. They are conducting a search for a new cfo. Auto comes in with thirdquarter adjustment. Thirdquarter sales of 1. 84 billion. Up 13 as we get reprieve from the news in terms of the investigation. Scarlet there is plenty of news from the auto sector. Bloomberg has news Fiat Chrysler is set to explore a potential merger. The talks are still at an early stage. It may not need it may not lead to any kind of deal. It was reported by dow jones there is a possibility of their combining. Become the ceo of the merged company. A little bit more detail here. The board is scheduled to have a meeting wednesday afternoon. Us is luke and novena. Look, we were talking to you earlier before we interrupted you. Preview the fed for us tomorrow. Is this a done deal . We get a 25 point basis rate cut, and we do not know what happened . Luke i think you really doubt it. The idea the fed is going to signal they are done, that seems at odds with the style of the jay powell fed, trying to conditional toas what happens in the economy. It really looks like a nonevent, which provides a lot of potential for fireworks. Peaked, time stocks they peter three months ago essentially during after an alphabet report in the runup to the news fed meeting. I think luke probably jinxed it by saying it will be a nonevent. We know chairman powell will sometimes throw a term out there that freaks everyone out like midcycle adjustment. Autopilot, and good example. For you, what will be the main thing that you are looking to learn about from the fed . We do you think the rate cut is a done deal. All eyes are going to be on the commentary. We think you will need the door open and make it datadependent. Our view is that this has been a series of insurance cuts. The markets are pricing in at 5050. Our view is that if Economic Data continues to stabilize, we are less likely to get the rate cut tomorrow. Scarlet i do not think datadependent will be the phrase that sets everyone off. Thank you so much to bloomberg news. That does it for the closing bell and for me. Overseas. Ading we are awaiting Prime Minister Boris Johnsons bid for a snap election in december. The result is coming up shortly. This is bloomberg. Live from bloombergs World Headquarters in new york, im caroline hyde. U. S. S a snapshot of how stock markets came down off of yesterdays record highs. Bargaining, Boris Johnson aims to wrap up the divorce with a prechristmas election. Will his wishes come true . Ceo struggles to defend the embattled Aerospace Company after two fatal crashes and mass groundings of the max jets. Ayond meet losing more than fifth of its value today as analysts credit analysts cut their price target. Lets return to the u. K. And brags it. Brexit. They are voting to learn if a snap election will be called november the 12th. Et an announcement soon. They are voting now on the final version. That is to have a general election on december 12. Porcha johnson is going to get the date he wanted. There is a lot of debate on whether to have it on monday the ninth or december the 12th on a thursday. The next question for the u. K. Political scene is whether or not Boris Johnson could go campaigning, which we know he is good at, but can he secure the majority he needs . He wants to get a majority stands to pass through the majuro agreement. His way and not decorated with amendments we likely will see if he was to be winning this and pushing through the bill with a minority government. Explains are those who do not understand, the significance of the ninth versus the 12th. Why there was a dispute over that. There really is not a lot of significance. It is just a few days time. Ive never seen such a rigorous debate over a monday or a thursday. The government is pointing to the fact that there are students involved and term breaks. They were also pointing to budgets and what happens in northern ireland. Saying, you are coming off a weekend. They going to be harder for pull stations to get up and running . The biggest debate will be that it is a winter election, one we have not seen since 1923. The birds who love to talk about whether in general. The brits love to talk about whether in general. Be interesting. We will keep an eye as to see if whether it deters the brits from going to the polls. The it really change calculus any further from what it is now . Potentially. Right now, Boris Johnson is laborg 10 to 15 ahead of. The polls have never exactly been right. Been ahead some 18 . That evaporated to 2 . That led to the hung parliament. While he is taking a big risk doing this, because yes, he is leading the polls, that does not mean where the polls are today will be where the polls are in early december. It will be a big campaigning and so the end caroline of the year. Caroline i would like to defend my nationality. You guys going on about the weather enormously in new york. Interestingly, i am taken by the fact this is once again going to be a proxy referendum. We are going to be once again heading to the polls, giving it to the british voter as to whether they went brexit or not. Many are saying this is the final proxy referendum on whether or not the u. K. Wants to stay within the European Union or not. We could see a lot more parties pick up votes about people who other referendum. When they had the parliament session, we sold tens of thousands march outside of the house of commons declaring a peoples vote. While Boris Johnson is leading in the polls, it is fair to say the British Public is still andded between ray meiners levers. Yes, Porcha Johnson is leading the polls, but things could change very quickly. Vote comingve the up soon as the mps get back into the house of commons. It is pretty much one thing that is sure. Youre going to have the general election. Boris johnson is getting the date he wanted. Are things to annmarie hordern. Back here in the u. S. , we have a slew of earnings out. Lets take a look at andy. Largely for the third quarter. There fourthquarter guidance also relatively in line. Their growths margin for the path for the past quit or did appear to come in above estimates. Shares up almost 3 . We also have electronic arts, which also came in slightly above estimates. The did dive higher for fiscal year. That is reflected in the shares. They actually beat on their net organic revenue and are etf was also aboveboard. You see mattel, a mixed bag. Shares actually up 18 . From new york, this is bloomberg. This is not going to be timeline driven. We are committed to answering every question the regulators have. Whenirplane will fly everyone is convinced it is safe. That is the most important thing here. That was the ceo of boeing pledging his commitment to safety. That was before the Senate Commerce Committee Earlier today in hearing. Here to share his thoughts, jim corridore. He has a 406 price target on boeing. Largely went as expected. I was wondering how you rate his performance and specifically, where the you think it as any clarity as to whether we are going to get the 737 max 8 back into the air . Jim i thought he was forthright, ernest. He was apologetic. He did not make things worse. He did not make himself the story. That was a win for the company. In terms of, did we learn anything new . Absolutely not. We did hear commitment to safety. Did hear things about the Software System close to being ready. We did hear a lot of criticism from congress. We did not learn anything new. And some oflt our opinion writers reflecting this he did not seemingly take on accountability very much. A lot of tough questioning coming from ted cruz. We have some breaking news, the u. K. Parliament has approved an early general election on december the 12th. Speaker of the house announcing the winning by the government in terms of december the 12th date for a snap election. Right honorable gentlemens pardon. Honorable lady has signaled a desire. Point of water. Caroline of order. Caroline rather than take the points of order, we are going to jump back out. December the 12th, there will be a snap election. Lets get back to jim. We were discussing the events of in congress. Eing some testy exchanges between ted cruz. Arguing what he knew about the instant messages. Of and some idea email of that nature was in existence previously. Is he taking enough ownership . Does he look like he is in control of the information like a ceo should be . Jim i think ted cruz was trying to do a gotcha moment. The Text Messages were possibly taken out of context. It was related to a simulator boeing was tested. It was before the plane came into service. There is no paper trail tying the comments from the pilot to the executive that boeing would have had any idea boeing had concerns. He was trying to get the ceo to admit something he was not going to admit to anyway. He accepted responsibility for the actions of the plane and promised to do better. That is all you can really do. What will be the longterm impact for boeing for these multiple disasters . There is going to be billions of dollars in compensation given to the Airlines Customers lost in revenues and profits. 100 billion going to the families of victims. There could be more financial payouts. It is going to cost boeing in the tens of millions of dollars. When you look at a company of this size that has a long track record of profitability and a huge order book, that is something analysts can look at as a nonrecurring item and look at the company eventually we can look at the company id the company at an ongoing basis. Given the presumed duopoly that you have on the large check category, we have also heard from quite a few ceos of airlines that have admitted they are considering the idea of looking at airbus planes versus boeing planes. You already have a lot of airlines that even if they stick with boeing, they are trying to extract not only compensation, but discounts on future orders. Does that not become a concern for you in how you are reading this company . It is part of the mosaic. Fivepointset aside Million Dollar 5. 9 million to compensate airlines. If you have been all boeing fleet, that is posturing to try to get concessions elated to profits. Boeing is going to be fine. Airbus cannot possibly accommodate all orders. Could the lose market share lead to airbus . Yes, that is possible. Boeing is going to be the largest are the second largest airbus manufacturer for decades. Caroline thank you very much indeed. A quick check on how we are moving in the post earnings word. Mattel, as they wrap up their whistleblowing inquiry. Mark i am Mark Crumpton with bloomberg first word news. The u. K. Will hold a general to on december 12, the date Boris Johnson wanted. It will give voters a chance to choose between parties trying to brexit and those pushing a split at any cost. The ceo of boeing apologized to families affected by the air disasters. He testified today before the Senate Commerce committee. He is scheduled to appear before the house transportation committee. He told family members of those we madewe know mistakes and got some things wrong. We are sorry. Deeply and truly sorry. ,s a husband and father myself i am heartbroken by your losses. I think about you and your loved ones every day, and i know our entire boeing team does as well. Onk in their final report the first crash, indonesian investigators said last week that boeings design of a Flight Control system made the plane vulnerable if a single sensor failed. From a longeparture reliance on redundant systems to prevent disaster. Firefighters are working to contain a wildfire in the brentwood area of los angeles before santa ana winds increase wildfire threats. Only slightly overnight and is only 5 contained. Tomorrowrs predict could bring the strongest santa gusts up tont, with 75 miles per hour. Those extreme wind events, we are going to see gusts up to as much as 70 miles per hour. As we have seen in northern california, those can transfer the fire miles away sometimes. Fire chiefos angeles warns that a single ember blown down wind could start a new fire. Eight homes have been destroyed and six damaged. Extensive evacuation orders remain in place. Wantsump administration to dictate how and where global secure partss according to the new treaty to replace nafta. Trade agreement would allow the u. S. To unilaterally administer production rules for companies. The new trade deal is still awaiting approval from the u. S. Congress. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 overalists and analysts in 120 countries. I am Mark Crumpton. This is bloomberg. Caroline thank you. Beyond meat plunged in todays session after questions about competition. Fake meatstors in the company sold shares. A brutal day for beyond meet. You would not know it here. But today is 230 , the second worst day in its short lifetime. Concern,rowth is a rising costs, competition, and the lock up. One reason why 75 of the early investors might want to get out now, take a look at the gains. 230 percent is not too shabby. Eventually, we could see slowing growth. The growth is estimated to be 240 percent, than 52 , 48 . Thats moving in the wrong direction. One concern is competition. This has caused analysts to bring down price targets. Wasa long time, beyond meet well above analysts price targets. The average price target was 100. Beyond meet is close to 250. Below 100. L an interesting divergence. It will be interesting to see how that plays out and it has to do with future performance. Great stuff, abigail doolittle. For more on beyond meet, lets sarah from washington. Big overview for a second. Is the realitynk to which investors are readjusting . Obviously, sometimes stocks can search due to momentum and other factors, but what does the landscape really look like in terms of competition, profitability, and the ability to pass on pricing . At does not have the lane to itself anymore. Impossible is signing up restaurant partners. Kellogg is doing incognito and getting into the space. Other foods are getting into the space. Supplycompanies with chains and marketing firepower, and the reality is setting in that beyond meet is going to have to fight for every dollar, every restaurant account, every grocery account. Part of the bullish narrative was that it had a growing market of people who were not necessarily vegetarians. That total Addressable Market still as rich as some people claim it is . I think it is. Evidence and research i have seen suggests that omnivores are embracing this product and that a longtermad, its change. One thing we have to think about is price. Stiller pound basis, its more expensive than traditional at. The price tag could be a deterrent to trying it for the first time. Willst have to see if they be able to get beyond that. Caroline you did a great story today for the Bloomberg Opinion column about how this has become all about restaurants. Yes, they are in stores. Frequently sells out. But the prices high. Price is high. How much do you think people will be buying it for themselves . Caroline for the first nine months of the year, 48 of revenue is coming from restaurants. Thats a big change from last year when it was only 34 . Thatnk we are seeing consumers like trying the product in a restaurant as opposed to in their home kitchen. They dont know how to cook a patty and have it taste good. They have misgivings about that. But when their favorite restaurant brand is beyond it behind it, they are more likely to give it a try. Mored meat is pursuing restaurant accounts. I think they are right to do that. Joel our thanks to sarah halzack, always with a great perspective. Has been giving a fourthquarter outlook that is well below expectations. Their earnings came out around this time yesterday. The stock guys destroyed their warning of intense competition and promiscuous customers, which i guess they mean customers not loyal to grubhub. Is thethe striking thing ceo wrote this letter to investors, but its essentially aimed at Silicon Valley and all the money being poured into competitors like door. Sh. Doorda he basically tried to explain economics to them. Maybe one day you are dreaming that drones will deliver food for free, but in the meantime, you are killing the entire industry by pouring money into a Business Model thats never going to work. Pretty extraordinary. I thought was fascinating. It would have been even more fascinating if it had not come from the ceo. Did he offer solutions . He does know he runs the company, right . Competitors. Leave them alone. This message was to the people thinking about funding the next doordash. Dont do it. Let them fail. Let us win. Extraordinary. Serious news concerning the wildfires in california. Edison in Southern California the woolsey fire remember, this was the fire from last year, there has been a lot of concern about who was responsible for that. Edison said its equipment was found to have cost that fire. The county found it was at fault. These are prepared marks edison is making. Edison shares down this hour. It was a darkying time of the saddleridge fire as well. From new york, this is bloomberg. Ahead of the feds decision tomorrow, its possible chairman powell will strongly suggest timeout on monetary easing. Here is our opinion columnist, brian. Writing re i am buying into this idea. Do you think he could effectively communicate to the market in a way that the market is not going to just throw its hands up and selloff . Im not sure. The market is kind of priced for perfection in a way. Its right in the middle of the 1. 5 one. 75 range. 1. 75 range. The idea is, if they signal a years maybe the next two they wont cut or raise rates ,gain, over the cutting cycle the market has left the fed saying you are not doing enough. We expect you to cut again. Now they are saying maybe you have a window. Its a question. For as much as it may be uneventful, powell likes to throw a curveball. What are you most curious to see or hear him say . I think was going to help him out is if they do some sort of tweak to the actual statement language that he can fall back on. If theres some sort of subtlety that we feel we are going to be dont expectow but us to cut rates, using a combination from earlier in the year. We dont want to cut again, but we will if things get worse. Meanwhile, President Trump is once again stirring the pot, saying the Federal Reserve is useless. And the u. S. Economy is what did he say . Not on fire iraqs. Does the u. S. Economy rock it rocks. Does the u. S. Economy rock . I think we are going to find out tomorrow morning. Its going to be really interesting. I think its a question of whether the markets to trade on any of that big Economic Data because ultimately it comes down thanks the fed thanks thinks. Do you think the fed is still as datadependent as it would like us to believe . Is it the bond market and Financial Markets overall . If the bond market was pricing in a rate cut in december, they would cut rates in december. Thats the path they have been on for years. That was my call today. The bond market controls at all. You are pretty good. Caroline i have heard. Brian, we love you. Chapatta. Watch our coverage of the fed decides. This is bloomberg. Caroline Chinese State media said investors should avoid behavior, referring to bitcoin in particular. Perspective, at one point china was giving Regulatory Approval for blockchain technology. Reactione stock market to anything remotely related to blockchain. They have since walked back. Where is china in terms of crypto . Its a good question. Jinping made a gray, great comment. They are looking to engage and see where the market is. To now,t statement there has been a lot of price volatility. We are trying to figure out, where is that going . , we look we can do is at market volatility on a monthly basis across what is cryptocurrency market. Based on that data, we are trying to formulate what we are seeing and what the market is seeing. What we have seen over the past couple of months, and previously ,hat we have seen in the market there is a lot of volatility coming about and that is what the market is preparing for. Joel what are the data points people should be looking at besides price . Volume or action on future exchanges . What goes into your model . We look at a whole array of different data points. It could be the correlations we are seeing from equities to commodities, launches, transactions, searches. And what type of market event we are seeing on a macro level. , the statement that the president made. When you look at whats going on on your platform, is the volume really there . About a lot of technical indicators being applied to equity markets, but in equity markets, you are dealing with a much broader base of investors. I feel like the band is a little bit narrower. Is it reliable . We are a simple, reliable, secure platform for trading digital assets. One thing we have seen, especially with the volatility, is a resurgence in active traders, professional traders, and businesses. Its not only because of the price difference. Its because we are seeing more reliable tools being built and ruled out. If you look at what fidelity reached as their customer solution as well as the streaming platform, it made it a lot more comfortable in removing that friction for participants to come to the market. With that, we are seeing a large volume of traders trade quite frequently. On friday,hat we saw for example, some say yes, the infrastructure is coming. Yes, we are seeing bigger exchanges. They are coming out with options. , its the moment basically still peertopeer and therefore we are still open to manipulation, particularly from players in china. Is that what is going on . Is it options trading . We really need market transparency. In the state of crypto, its early on and opaque. There are Companies Creating market transparency connected to these exchanges. , we are creating more transparency with what going on with this market. Creating whats visible and whats being done in the ecospace today. Much,thank you very dating kim. Kim. Danny now, turning to asia, investors to show how coveted equity like securities have become. To tamp downng sales of convertible bonds now that there is crazy demand . What is the role of this asset class that has so people has people so interested in piling and . We have seen a huge rally in the stock markets in china. Investors want to match those returns. The shanghai composite is up about 20 this year. If you take the convertible we are talking about a 19 gain this year. China came out with these convertible bonds. About half go to existing shareholders. Trillion, and 1. 1 of course, this is also highly rated, a credit rated company, so there was a lot of interest there despite the fact that regulators have tried to tamp down the frenzy so far. The fact that they try to tamp it down, doesnt that boost the frenzy . Yes. Artificialf an supply and demand. It was oversubscribed 5500 times and the regulators came out and said, you know what . Its very different to the stock markets with the stocks and bonds they actually supply. They are very scarce compared to the assets already out there. Companies havent come out this often to do this. Once they actually do it and the regulators have time to balance, that has clearly not worked so far. Caroline what are regulators saying . They are still looking into it. We are hearing so many different things. In the chinese bond market, there are ways you can get around things. For example, if you take a look at the private profile at the moment, it looks great. We have so many fewer defaults than last year. You dig deeper, and our opinion colonists came out and said there are other ways columnist came out and said there are other Ways Companies have found. Moving debt into new bond sales while they wait out a potential government bailout. There are different methods companies have tried to get around regulators. Jewel one asset class we hardly ever talk about one asset class we hardly ever talk about his government bonds in china. Do government bonds in china performed the same asset role and roughly have the same conceptual idea . But not as liquid. Thats the problem with the Chinese Government bond market is that access to the bond market is very limited, so when you take a look at this chart, you can see the selloff in. Overnment bonds has continued its up the most since april. Monetary policy is not expected to be too aggressive so we will see this trend continue. Forline stay with sherry more on this. And dont miss the story on daybreak asia. The fedeantime, announces a Rate Decision tomorrow. I will be watching u. S. At 830c data and gdp a. M. Apple reports earnings tomorrow. When it comes to using data, everyone is different. Which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, get 50 off when you buy any new lg phone. Xfinity mobile. Click, call or visit a store today. Taylor i am taylor riggs in for emily chang in san francisco. This is bloomberg technology, and in the next hour, a chipmaker reports thirdquarter revenue in line with estimates. Nearly three months ago, they cut guidance and highlighted new progress products. We have the details. An
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