Im watching a big apple supplier. 16 , now the highest since june 2017. Supplier,ig apple benefiting from strong demand, the iphone as well. All this makes you want to look at the supply chain analysis. 81 percent of revenue comes from apple, up 5 from a year ago. Is saying that apple pods givingving the company a big boost. Well. G ford as another good boost for suppliers. Stock market did finish lower on the back of trade headlines and weaker than expected economic data, but we are still close to an alltime high. There is evidence that investors in etfs are getting nervous. From two of the largest etfs, 8 billion leaving. Isntmbined value really that large compared to other voo is stickier money. For thee worst month fund on record. Where as you would see this movement in spy as a vehicle for investing, not so much in voo. In spite of stocks at alltime highs, some etf investors are wanting to get out and reallocate. Copper, downng at 2 today, following other base metals. Chinas Manufacturing Sector dropped to the lowest since february, underscoring weak demand. Aboutreases concerns chinas trade tensions with the united states. There are concerns they may linger longer. Copper has fallen by 0. 6 this as minecently rising workers halted in support of protests in the area. The outlook is bleak on metals demand because of the u. S. China trade war. Caroline thank you. Some interesting that companies are still trying to build bridges between the u. S. And china. 20. 5 stake in a a chinese drug developer. The deal will commercialize experimental cancer drugs in china. 2. 7 billiony worth of shares. Amgen off by 1 in afterhours trading. We also have results out of dropping after thirdquarter revenue missed estimates. 279. 7 million, missing the mark, north of 280 million. Loss of . 23ss, a per share. Monthly active users, 322 million, better than expected. The top line does not match what analysts were looking for. Getting smashed. Off 20 . A formerh us is chief and also a derivative strategist. Tumbling. Interest volatility or sectorsdo you see in Like Technology versus other parts of the market . Wethat is the question, will see the value sectors outperform. Is we expected global ip momentum to trough in q4. Upside, weooking for. Ike emerging markets if youre looking for exposure to cyclical pickup, that is where it is cheaper right now. Trough now, we have but there are sectors that will continue to do well. Are describing the optimism you see in the s p 500. When you look at International Aspects to the market or cyclic ly expose, you dont see that euphoria . I fallenied volatility has to lower levels as a percentile. Bullishlso seeing more positioning in the emergingmarket regions. Aboutne you were talking the volumes within treasuries, elevated in stocks. Where do expect the most excitement in Asset Classes as we look and digest the u. S. Data . Question. A good i would say the equity market. Becausebe really muddy of the General Motors uaw situation. Algorithms twitch if the numbers are way off, but the equity markets will lead the way. In the treasury market are a reversing of the selloff in the treasuries, getting back into the market, either cutting those treasury positions or going along at the same time. The dollar situation has been steady. Volatility, bump in it will be equities. Looking that everything that has happened, will the jobs report tomorrow matter . Absolutely. The rebound is predicated on the thought we are not headed towards recession, growth is see the jobs if we never disappoint, ism disappoint, that will have reverberations across asset biases. We have seen the first significant decline in Interest Rate volatility this week, all before the fed. So to me it is this rising recession fear, so if we get data that is worse than expected, we will see followthrough on an asset class basis. Thatit sounded yesterday Jerome Powell raised the bar for the next hike. It will be a long time before good news is bad news, good wage numbers, good in numbers, a good ism theory without worrying . Conference, he talked about the bar for raising rates is very high. It was a dovish statement, a dovish press conference, precisely for the point you made. Caroline anyone talking about impeachment, brexit . I have a couple of algorithm traders who will ask me if this will trigger movement in Asset Classes. We are just not there yet. Months to go, maybe even another year. Soon, this is true. Thank you so much. That does it for the closing bell. Whatd you miss . Is up next. We will be looking at pinterests latest results. This is bloomberg. I am caroline hyde. Joe i am joe weisenthal. Caroline here is a snapshot. We are down on the s p 500. Joe whatd you miss . Caroline chinese trade officials uncertain despite nearing a phase i agreement. October 31, the u. K. Remains. Pound traders look ahead to snap elections. Inside facebook, i spoke with Sheryl Sandberg on the Impressive User growth amid regulatory scrutiny. China casting some doubt. Officials are skeptical about the chance of reaching a longterm trade deal with president trump, even as the u. S. And china move closer to signing the phase i agreement, sending stocks down by the most in three weeks. We are joined by one of the reporters working on that story, joining us from washington. Thank you for joining us. How much of a surprise is this to you, this ongoing doubt. How much does this deviate from some of the optimism you here in washington, d. C. About phase one leading to something more complete next year . There has been a lot of skepticism in dc and outside the white house whether the Trump Administration can take the phase i deal and turn it into something bigger and more comprehensive. In thisset out to do story is as the chinese where they were. We spent a number of weeks hitting the phones commit meeting with chinese officials, with people who had met with chinese officials and had gone through beijing recently. The Common Thread that emerges is the chinese very clearly dont see a path to a more comprehensive deal once they get narrow phase i deal. That may fit with the consensus view of the skeptics at the nks, but the fact we are hearing it from the chinese is the difference. Idea and china, president she asian spring specifically, not to lose faith, jinping president xi specifically, not to lose faith. Separate things that seem to be on the chinese mind. These requests from the Trump Administration early fundamental root and branch reforms to the chinese economic model. The chinese played along with that for a while, probably never going to go all the way there, but willing to talk about subsidies, things they are looking at themselves as part of their economic reforms. They were talking about these things leading up to may and the collapse of talks, but something happened in may whereby they seemed to lose a lot of trust in the Trump Administration, and a lot of has to do with the fact that the Trump Administration was not offering the carrot, the carrot was removing all these tariffs. He was not willing to take them away. The second thing is, over the last six months, the chinese have built this picture that trump is an impetuous walks awayr, that he from deals he has made, and they are not sure they can trust him. People cite the example of nafta, usmca, the new then a few months later, threatening tariffs over immigration issues and so on. Chinais a broad sense in it seems that they just dont have the trust in the u. S. Side to close this deal. Hopelets set aside the for a big deal and talk about the phase i. That is still not signed yet. Sure thing cana we count on this. B, there are another set of tariffs currently scheduled to go into place. What if the prospects for that to be delayed or modified again . We should expect the two leaders to come together at some point in the coming weeks. It could drag it into december. Narrow deal, ay deal of convenience for both sides. Deal, a deal of convenience for both sides. It pauses the escalation on the u. S. Side when it comes to tariffs, and on the chinese side, they agreed to resume agricultural and commodity beforees at a level seen the trade war, to renormalize relations. Then there are ip commitments they are largely doing already and they had nailed down and were part of the agreement. They were not that contentious in the may agreement. It is a deal easy to get done. There are always devil in the details, and we should see some posturing that made drake out of it a bit, but the phase i deal is likely to happen. It may be as good as it gets. Great to have your analysis. Lets get you up to speed with pinterest, following her, down almost 18 . The seeming cause is revenue missed. That is not a massive miss. Seemingly, the market does not like it. This is bloomberg. G. Joined fore are now further reaction when it comes to analysis on pinterest numbers. Tom, fascinating to see the earnings at the moment, why on earth falling so hard . What did you take away from the numbers . We seem to have a technical problem. Terribly sorry. Now lets get you up to speed with the business flash headlines. The deal will create one of the largest automakers. The two boards agreed to work towards a binding agreement. Shareholders of each company. Ill on 50 hundreds of local leaders meet in detroit to review a tentative contract with ford. Reache reached an agreement last night. Ford promised to invest and retain 8500 jobs. Wayfarer near its lows level of the year. It forecasted disappointing outlook for the holiday season. Is your business flash update. To another story catching my attention, the takel apocalypse has left a lot of Stores Across the u. S. , forcing landlords to find creative and spooky ways of filling their space, so apparently people are using them for recreational spaces . What is the deal exactly . Now they can be used for haunted houses and things like that. Apparently a cost you 27 ticket in this one. Joe at least it is something. What about gigantic roller rinks . That would be fine. Bottomline is they are desperate to use this space. Lets check the latest with pinterest. Surprise, lot of people on twitter. The numbers are not objectively horrendous. Almoste revenue was 280 million. This is a talking about expanding, being in new markets, monetizing more markets. They have added a significant amount of users. Most of them are outside the u. S. , but most of the revenue comes from inside the u. S. , so how do you monetize those . Like a q4 2019 reaction. Q4 2018, this in q1 it would have been a different is sobut the market punishing that fairly is Small Companies not nailing it on the financials. Lyft felt today. Caroline we would begin much more in a moment. This is bloomberg. 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. Lets get the first word. China and the u. S. Close to signing the first phase of a trade deal. It also may be the last. Chinese officials doubt a longterm agreement is possible with president trump. They are concerned about his impulsive nature and said they will not budge on the toughest issues. Begin in the nations thirdlargest cool district. Chicagos longest teacher strike has come to an end. Ther Lori Lightfoot made announcement after meeting with the president of the teachers union. Ae two sides agreed on fiveyear contract that includes a 16 raise in staffing to combat overcrowding. Says Elizabeth Warren is ignoring the charitable contributions made by the wealthiest entrepreneurs. In an open letter to the candidate, cooperman accuses her of vilifying the rich. Elizabeth warren singled cooperman out, saying what he believed in progressive taxation that he has fundamental disagreements with her approach. The Treasury Department plans on weakening regulations to stop Corporate Tax avoidance, to prevent u. S. Companies from moving profits offshore. The treasury says the regulations are no longer necessary because of the tax law enacted under president trump. The had been implemented in final months of the obama administration. Global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over than 120 countries. Caroline thank you. Longer be theno deadline for brexit, but there is still plenty of fright. These are the scariest charts for investors. Countries have been ramping up investment spending, but u. K. Firms have been paralyzed. Now u. K. Business investment trails pierced by 10 . The headline index of real estate prices remains negative. The number of homes put up for sale the lowest since june 2016, complete stagnation. The scariest of them all, the ghost of deals past. Reach for other deals. To more decades of trying hatch a deal with the eu for many is a scary story. Joe for more insight in the u. K. , we are joined by a professor of Political Science at wellesley college. Thank you for joining us. We are beginning this election. It feels like everyone is getting deja vu from theresa mays election. Despite the polls, could there be a different outcome, that the gamble proves wrong and blows up the entire plan . Absolutely. Boris johnson is going into this with optimism. The polls have the conservative party ahead, but there are so many unknowns. In youth Voter Registration that picked up after the election is announced. We was announced. We see a lot of campaigning party, also by the small parties, and if they can pull support away from the conservative and labour party, this could be anybodys game. Caroline the fx market is starting to get cautious about a chance we could see a no deal brexit, if the brexit party in particular did well. Do you think that is in any way the case thats it antibrexit parties would be due better than expected . I think there is a chance it will be the remain and no breaks at parties. Where the brexit party is a danger is it could pull away support from the conservatives. Nigel faraj is making the case that the deal Porsche Johnson brought back from the eu is still no good. Away can pull enough votes , that makes these other smaller parties more competitive. Potential for these smaller parties to be spoilers, combined with the fact that people might engage in tactical voting to get their desired outcome, does that mean polling will be especially useless in this election . That is a really good question. Useless. Ot say it is it will show us important trends , but once we see the smaller parties move and strike a with each other, and remember what we have going on here is not about a straight election, but Boris Johnson being able to get enough conservative seats to form a majority government without being dependent on the smaller parties they have been dependent on the last couple of years, so ist the polls will tell us one thing, but we will be waiting until election day on december 12. It is just the exhaustion of the whole process, even those who are proremain just one to deal done, they would rather we move forward. Do you get a sense of that, or the fact we are going towards a general election going to stir up all the initial dividing lines we had to begin with and make the polarization as it was before . Absolutelyink youre right to pick up on the sense of resignation. The deal that Boris Johnson brought back with some exceptions really is not that much different from the deal theresa may brought back, and yet there is already support. The labour party is entering into the election with the same resignation as well, but that being said, Boris Johnson, jeremy corbyn, they tend to be polarizing campaigners, so this is were not just be about brexit , they are putting the National Health service in the table, the Scottish Party will commit with scotlands independence comes of this will have unanticipated polarizing effect. Joe thank you so much for your insight. , theng back to pinterest social Media Company getting clobbered after a slight miss on million. F 279 they beat on monthly active users. Narrower, but this where there was a lot of interest. People want to see solid financials across the board. Pinterest did not deliver it, and the stock is getting punished. Caroline coming up, facebook defending its political ads policy. My exclusive interview with Sheryl Sandberg. This is bloomberg. This is bloomberg. Caroline pinterest results. 18 as revenue barely misses. Lets get the inside track. What is everyone so worried about in this set of numbers . If you look back at the tryings preview, we were to determine whether it was a trick or a tree. It is clearly a trick. The big challenge for pinterest is their audience 70 international, but monetization is 10 . Saw the rate of growth in yes, ational sales, and small miss is not significant, but the deceleration in international is why you are seeing pressure on the stock. Joe to use the selloff does not look out of line with results . I think you pointed out earlier that it was a tough day for midcap internet stocks, lyft and others. To have that kind of performance on a day like today results in a material downturn after hours. The call will be starting soon for there is to vote the company to explain what is going on. Caroline they are adding users in less lucrative international markets, but couldnt they make markets more lucrative . Better was one of the performing, newly minted ipos in a very challenging class. More recently the stock held up well followed by the lockup of exploration. Onneed to see whats going with international monetization. A rough market for all kinds of recently public Companies Still in a