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00:00I AM MARK CRUMPTON. THIS IS BLOOMBERG. ♪ CAROLINE: 2:00 P.M. IN NEW YORK, 7:00 P.M. IN LONDON. I'M CAROLINE HYDE. SCARLET: I AM SCARLET FU. THIS IS "BLOOMBERG MARKETS: THE CLOSE." CAROLINE: TREASURIES RALLIED WITH GOLD AS THE S & P 500 FALLS THE MOST IN THE MONTH, AS POLITICAL TURMOIL HITS THE MARKETS. WEWORK REVIVALSREWRITE. ADAM NEUMANN WILL STEP DOWN AS CEO. BIDEN VS. TRUMP. PRESIDENTIAL HOPEFULS SAYS TO CALL FOR IMPEACHMENT IF THE PRESIDENT REFUSES TO COMPLY ON INTERACTIONS WITH THE UKRAINIAN PRESIDENT. SCARLET: WANT TO GET A CHECK OF THE MARKETS. STEADY DECLINE LOWER. 1% DROP FOR THE S & P 500. WE ARE OFF THE WORST LEVELS OF THE SESSION, BUT THE STEADY DRUMBEAT OF NEGATIVE NEWS AFTER INITIALLY OPENING HIGHER. PRESIDENT TRUMP MAKING CRITICAL ON CHINA AND BIG TEX. CAROLINE: BIG TECH, POLITICAL TURMOIL, MURMURINGS OF IMPEACHMENT IN THE UNITED STATES, BREXIT, AND AN UNPRECEDENTED LEGAL DEFEAT FOR BUT WAS JOHNSON. GNOME WONDER WHEN YOU GOT THE MIGRATORY -- NO WONDER WHEN YOU HAVE THE REGULATORY SCRUTINY -- AND ALSO THE CHIPMAKERS LEADING THE DROP ON THE BACK OF THE TRADE. SCARLET: FIFTH STRAIGHT DAY OF LOSSES FOR NETFLIX IN PARTICULAR. YOU TALKED ABOUT BREXIT. A LIFT AFTER THE SUPREME COURT IN THE U.K. RULING THAT BORIS JOHNSON'S MOVE TO SUSPEND PARLIAMENT WAS UNLAWFUL. WHAT HAPPENS NEXT? NOBODY KNOWS. CAROLINE: A NEW ELECTION OR LESS LIKELIHOOD OF A NO-DEAL BREXIT. SCARLET: WE HAVE NYMEX CRUDE MOVING DOWN 2.4%. SIGNS THAT SAUDI ARABIA IS MAKING PROGRESS IN RESTORING ITS OIL PRODUCTION FACILITIES IS PUTTING PRESSURE ON OIL. LET'S DIVE DEEPER INTO TODAY'S ACTION WITH MARKETS REPORTERS. RENITA: TAKING A LOOK AT CONSUMER CONFIDENCE, WHICH IS DRAGGING DOWN EQUITIES TODAY. THE BIGGEST DROP SINCE THE START OF THE YEAR. THIS IS AS AMERICANS' EXPECTATIONS FOR THE ECONOMY AND THE JOB MARKET LOSE MORE STEAM. THE LIST TO HOUSEHOLD SPENDING IS UNDERPINNING GROWTH. THE NEXT BEST INDEX FELL TO A THREE-MONTH LOW. THE PREVIOUS MONTH GOT A DOWNWARD REVISION OF 134.2. A BLOOMBERG SURVEY OF ECONOMISTS CALL FOR 133 CONFERENCE BOARD OFFICIALS AND AN ECONOMIST BOTH SAY TRADE TENSIONS COULD HAVE RATTLED CONSUMERS DURING THIS TIME. ABIGAIL? ABIGAIL: I'VE GOT WEWORK ON MY MIND AND THE FACT THAT THE IPO HAS BEEN DELAYED INDEFINITELY AFTER CEO ADAM NEUMANN DID STEPPED OUT IN THE NOON HOUR -- YES, NOON HOUR, NOT SO LONG AGO. THE COMPANY IS SAID TO BE DELAYING THE IPO UNTIL NEW MANAGEMENT IS ENTIRELY IN PLACE PERMANENTLY. INSIDE THE COMPANY WE HAVE MINTON AND CUNNINGHAM, CO-CEOS, LOOKING FOR MORE CLARITY. IT DOES SEEM THAT MOST OF THIS IS, E-SPECIFIC. FOR THE BIGGER IPOS IN THE HIGH-PROFILE ONES, WE GO INTO THE BLOOMBERG A VERY BUSY CHART. BUSY IPOS IN THE LAST YEAR. JUST TO GIVE YOU AN EXAMPLE OF HOW DIFFICULT IT IS, IN PURPLE ON TOP, UP 1.2% FROM THE IPO. ALL OF THESE IPO EXCEPT FOR UBER ARE UP. TALK CAP FOR THESE NEW COMPANIES TO BE GOING PUBLIC. TAYLOR: I'M LOOKING AT SOMETHING ELSE THAT IS DOWN. NETFLIX FOR THE LAST FIVE DAYS AFTER AN ANALYST DOWNGRADED IT SHOWS HIM AND HE SAID THAT THE CONTENT COSTS WILL BE MATERIAL HIGHER THAN FORECAST. HE WAS TALKING ABOUT HOW MUCH NETFLIX HAD TO SPEND FOR STREAMING RIGHTS TO " THE BIG BANG THEORY" AND "SEINFELD." NETFLIX HAS TO CONTINUE TO SPEND TUESDAY HEAD OF COMPETITORS LIKE DISNEY OR APPLE TV+. TAKE A LOOK AT THE CHART THAT I'M SHOWING ON MY BLOOMBERG TERMINAL. IT IS ALL ABOUT THE MASSIVE NEGATIVE CASH FLOW. THE COST OF CONTENT IS GETTING SIGNIFICANTLY MORE EXPENSIVE. EARLIER, ANALYSTS WERE LOOKING ABOUT $3.5 BILLION OF NEGATIVE FREE CASH FLOW. WE WILL HAVE TO SEE AS THEY CONTINUE TO RAMP UP SPENDING AHEAD OF CONTENT AND COMPETITORS IF THE NUMBERS CONTINUE TO CHANGE. SCARLET: TAYLOR AND THE MARKETS TEAM, THANK YOU FOR THIS SET UP. WE WILL WELCOME JASON BROWN, PRESIDENT OF ALEXIS INVESTMENT PARTNERS. WE TALKED ABOUT HOW STOCKS DI D OPEN HIGHER COME BUT YOU HAVE A HOST OF NEGATIVE HEADLINES, WHETHER IT IS PRESIDENT TRUMP'S COMMENTS, NUMBERS OUT OF GERMANY, OR SOMETHING LIKE WEWORK GRABBING HEADLINES, ON THE POLITICAL RISKS WITH MURMURS OF IMPEACHMENT TALK. WHAT HAVE YOU CONSIDERED THE MOST FROM THAT FILE? > > FROM THAT PILE IN PARTICULAR, IT WASN'T GREAT TO HAVE THE NEGATIVE NEWS ON CHINA OUT OF THE PRESIDENT, ALTHOUGH THAT ENDS TO BE HIS WAY OF DOING THINGS, RIGHT, GOING INTO THE MAJOR TALKS WE HAVE NEXT WEEK, TO SET A NEGATIVE TONE. IT IS DIFFICULT TO DISCERN. OBVIOUSLY IT SEEMED LIKE A REAL DROP IN THE MARKET HAPPEN AFTER THE ECONOMIC NEWS AND THAT CAME OUT WHEN YOU HAVE INCREASING RHETORIC AROUND IMPEACHMENT AND SO FORTH. I THINK IT IS A LOT OF CAUTION AS YOU APPROACH THE PRIOR HIGHS. IT IS THAT GIVE-AND-TAKE. THERE'S STILL SOME RESILIENCE. I WOULD NOT WANT TO KICK COUNT THIS MARKET--I WOULD NOT WANT TO COUNT THIS MARKET OUT. CAROLINE: IN TERMS OF REACHING ALL-TIME-GOING PAST THEM, COULD WE SEE NEW RECORDS SET? JASON: I HAVE CERTAINLY BEEN -- I AM MORE OF A BELIEVER THAT WE ARE GETTING MORE SELECTIVE. ON A DAY LIKE TODAY, STOCKS HAVE PULLED BACK, INDICES HAVE PULLED BACK. YOU STILL HAVE STRENGTHENED MCDONALD'S. HOME DEPOT IS PRETTY FLAT. THERE ARE AREAS PEOPLE ARE BUYING, NOT JUST EXITING THE MARKETS ALTOGETHER. I HAVE SEEN A BROADENING OUT OF LEADERSHIP. STARTING TO BUY SMALL CAPS AND THINGS OF THAT NATURE. IF IT IS THAT WE ARE NOT GOING TO GET TO NEW HIGHS, A LOT OF THESE LEADERS WILL PULLBACK SAMPLES OF AT THE EN -- FULLBACK SOME. AT THE END OF THE DAY, HOW DO I FIND PEOPLE'S PROTIME-- FUND PEOPLE'S RETIREMENT AND SO FORTH, OR STOCKS THAT ARE GROWING EARNINGS EVEN THOUGH MAYBE AT A SLOWER PACE, AND OFF GROWTH POTENTIAL, HAVE A HIGHER DIVIDEND YIELDS THAN THOSE FUNDS. SCARLET: I'M THINKING ABOUT TECHNOLOGY COMPANIES WHEN YOU MENTIONED STOCKS THAT HAVE GROWTH POTENTIAL. HOW MUCH DOES IT WORRY YOU , THIS PROSPECT OF MORE REGULATION? JASON: I THINK IT HAS BEEN A LONG TIME COMING, TO BE HONEST WITH YOU. SCARLET: IS IT PRICE DID?-- PRCI ICED IN? JASON: I DON'T KNOW. IT HAS BEEN DISCUSSED FOR A LEVEL TO IT WILL BE AN INCREASINGLY IDIOSYNCRATIC KIND OF SITUATION FOR THE APPLE GOOD, MARCUS UP GOOD, FACEBOOK -- MICROSOFT WORD, FACEBOOK UNDER MAYBE MORE SCRUTINY. I THINK SOME POINT, YOU DON'T WANT ANY COMPANY TO HAVE UNLIMITED AMOUNTS OF POWER. A CERTAIN AMOUNT OF REGULATION MAKES A CERTAIN AMOUNT OF SENSE. I THINK THESE COMPANIES OUR EXPECTING THIS AND THINK IT HAS BEEN A LONG TIME COMING. CAROLINE: INTERESTING. JUST NOW WE HAVE SEEN $56 BILLION KNOCKED OFF THE INDEX WE HAVE SEEN THEIR. HOW DO YOU PROTECT YOURSELF FROM THE UNKNOWNS, THE SATURN TWEET THAT SAYS "HEY, ACTUALLY WE'RE GOING TO DO A DEAL WITH CHINA." WE COULD SEE GERMANY TO BETTER, NOT ONLY THE U.S. ECONOMY. HOW DO YOU ENSURE YOU ARE IN THE RIGHT AREA TO BENEFIT WITHOUT BEING EXPOSED TO LOSSES? JASON: I TRY TO LOOK AT A COUPLE OF THINGS. COMPANIES AT THIS STAGE OF THE CYCLE WHERE VALUATIONS IN GENERAL ARE QUITE HIGH AND ARE GOING UP FOR A WHILE. I LOOK FOR COMPANIES THAT ARE INHERENTLY STRONG IN TERMS OF THE BALANCE SHEET AND SO FORTH. AT THE SAME TIME, ACTUALLY ARE TRENDING UPWARD WERE I CAN GET -- I DON'T LIKE TO BELIEVE THAT I CAN OUTSMART THE MARKET. I TRY TO LOOK AT WHERE MONEY IS ACTUALLY GOING, AND THEN I SAY TO MYSELF, WHAT ARE THE ALTERNATIVES. I STILL THINK YOU ARE FINDING MORE AND MORE OPPORTUNITIES TO BUY INTO THINGS, AS LONG AS YOU DON'T GET TOO GREEDY. DON'T TRY TO STRETCH FOR AREAS THAT HAVE REALLY LAGGARD. YOU CAN FOLLOW THE LEADERS TO SOME EXTENT, AND THEY ARE SEEMING TO GUIDE YOU ALONG PRETTY NICELY -- AT LEAST THAT IS MY IMPRESSION. CAROLINE: WE THANK YOU FOR THE PERSPECTIVE. COMING UP, AVOIDING A REPEAT. AFTER ITS FIRST EARNINGS MISS IN SEVEN YEARS FROM NIKE EARNINGS WILL BE UNDER THE MICROSCOPE. OUR CONVERSATION WITH THE INCOME ECB PRESIDENT CHRISTINE LAGARDE AS SHE REFLECTS ON HER TIME AT THE IMF. WEWORK REWORK. CEO ADAM NEUMANN STEPS DOWN MAINLY AS CHAIR, BUT IT IS A MOVE DESIGNED TO SALVAGE AN IPO. WILL IT? THIS IS BLOOMBERG. ♪ SCARLET: WE HAVE SOME BREAKING NEWS FROM PRESIDENT TRUMP ON UKRAINE. HE TWEETED OUT THAT HE HAS OTHERWISE THE RELEASE TOMORROW THE FULLY DECLASSIFIED AND UN REDACTED TRANSCRIPT OF HIS PHONE CONVERSATION WITH PRESIDENT ZELENSKIY OF UKRAINE, FOLLOWING A WHISTLEBLOWER'S ACCOUNT THAT HE PERHAPS PUT CONDITIONS ON AID TO UKRAINE RELATED TO INVESTIGATING JOE BIDEN'S SON, THE DEMOCRATIC CANDIDATE'S SON. THEY HAVE A LIST UP IN THAT THEY ARE LESS NEGATIVE. WE HAVE NOT ERASED OUR LOSSES, BUT HIGHER FOLLOWING THIS TWEET. WE ARE WAITING AWAITING FORMER VICE PRESIDENT JOE BIDEN 'S COMMENTS AS WELL, COMMENTS ON THE ACCUSATION OR TALK THAT PRESIDENT TRUMP DID CONDITIONALLY ASKED UKRAINE TO LOOK INTO HIS SON'S DOING SO THE IN THE MEANTIME, LET'S GET TOP CALLS. CAROLINE: TIME FOR THE TOP CALLS, KEY MOVERS ON THE BACK OF ANALYST RECOMMENDATIONS. GOLDMAN SACHS UPGRADING WYNN RESORTS TO BUY, WITH THE ANALYSTS CITING CASH FLOW. $111 IS WHERE WE TRADE. RBC CAPITAL RISING ITS PRICE TARGET ON ALPHABET. IT IS MAINTAINING OUTPERFORM RATING. SHARES ARE MOVING LOWER TODAY COME OFF BY 1.4%. WE KNOW WHY, CONCERNS ABOUT THE UNITED NATIONS SPEECH BY PRESIDENT TRUMP. FINALLY, SNAP UPGRADED TO A BY FROM NEUTRAL AT GUGGENHEIM WITH A STREET HIGH $182 PRICE TARGET. THE SOCIAL HEAVEN MEDIA COMPANY'S -- A SOCIAL MEDIA COMPANIES UNDER TREE SHADED FUNDAMENTALS. SCARLET: HE IS TAKING A NEW ROLE AS THE NONEXECUTIVE CHAIRMAN. WE WILL TURN TO MICHELLE DAVIS, THE BLOOMBERG NEWS FINANCE REPORTER. HE IS NOW A NONEXECUTIVE CHAIRMAN. HE WAS VERY INFLUENTIAL ON THE BOARD OF THE COMPANY BECAUSE HE HAD SO MUCH OF THE VOTING RIGHTS. HOW INFLUENTIAL IS HE NOW? > > THAT REMAINS TO BE SEEN. WHEN IT COMES TO THESE PRIVATE COMPANIES, THERE IS A QUESTION -- HE IS THE FOUNDER OF THIS COMPANY AND ARE PEOPLE WHO JOINED THE COMPANY BECAUSE THEY BELIEVE IN HIS VISION, SO WITH HIM WITH A NON-CEO TITLE COME IT IS A QUESTION OF WHETHER THEY KEEP UP THIS MOMENTUM. CAROLINE: AND OF COURSE THE REASON THAT MANY OF THESE BOARD MEMBERS ARE TAKING A STANCE TO SALVAGE THE IPO. NEUMANN HAD RATHER ALTERNATIVE THINGS YOU MANAGED TO PUT INTO PERSPECTIVE. IS IT ENOUGH TO SALVAGE THE IPO? MICHELLE: AT THIS POINT WHAT OUR SOURCES HAVE PULLED US IS THAT IT IS UNCLEAR IF THEY WILL BE ABLE TO GO FORWARD WITH THE IPO THIS YEAR. THE QUESTIONS ABOUT THE ROUTE TO PROFITABILITY AND LONG-TERM DISTANCE INVESTORS HAVE ARE NOT SOLVED BY HAVING ADAM NEUMANN NO LONGER AS CEO. IT WILL TAKE A LITTLE MORE THAN JUST MOVING HIM TO THE SIDE TO REALLY GET INVESTORS TO WANT TO BUY INTO THIS. SCARLET: IT SEEKS TO HOW CRITICAL GOING PUBLIC IS FOR WEWORK. THEY NEED TO TAP THEIR CREDIT LINE AND THAT IS CONDITIONAL ON THE SUCCESSFUL IPO BY THE END OF THE IF OTHERWISE THEY RUN OUT OF CASH AND CANNOT DO WHAT THEY ARE DOING. MICHELLE: IT IS ABOUT $9 BILLION THEY ARE MISSING OUT ON IF THEY DON'T GO FORWARD BY THE END OF THE YEAR. THEY ARE KIND OF RUNNING UP AGAINST THE CLOCK HERE. I UNDERSTAND THAT SOMETHING THAT COULD HAPPEN, OFFERING SOME SORT OF EMERGENCY FUNDING, BUT AGAIN, WHAT WE HAVE WITH THE PAST TWO WEEKS FOR THIS COMPANY, THE TALKS ARE IN FLUX AND THAT THINGS CHANGE HOUR-BY-HOUR. STAY TUNED FOR MORE DETAILS. CAROLINE: KEEP AN EYE ON THE PUBLICLY TRADED ASSETS. MICHELLE, GREAT ANALYSIS, GREAT PIECE AS WELL. MICHELLE DAVIS THERE. COMING UP, WE ARE KEEPING AN EYE ON NIKE'S FIRST QUARTER FOLLOWING THE FIRST SHORTFALL IN SEVEN YEARS. THIS IS BLOOMBERG. ♪ SCARLET: WE JUST WANTED TO UPDATE YOU THAT U.S. STOCKS PARED SOME OF THE LOSSES. PRESIDENT TRUMP TWEETED "I AM AT THE UNITED NATIONS REPRESENTING OUR COUNTRY BUT HAVE AUTHORIZED THE RELEASE TOMORROW OF A COMPLETE AND UNCLASSIFIED TRANSCRIPT" OF HIS PHONE CONVERSATION WITH THE PRESIDENT OF UKRAINE. HE SAYS IT WAS A FRIENDLY AND TOTALLY APPROPRIATE CALL, NO PRESSURE, "UNLIKE JOE BIDEN AND HIS SON, NO QUID PRO QUO." HE CHARACTERIZES IT AS THE GREATEST AND MOST DESTRUCTIVE WITCHHUNT OF ALL-TIME. IN ADDITION TO PARING LOSSES ON EQUITIES, VOLODYMYR ZELENSKIY SAYS HE EXPECTS HIS MEETING WITH TRUMP TO BE WARM WHEN THEY MEET ON THE SIDELINES OF THE GENERAL ASSEMBLY. CAROLINE: THE UKRAINIAN PRESIDENT HAS PROBABLY NEVER FELT THAT HIS NAME HAS BEEN SO USED BY THE PUBLIC MEDIA OF LATE. FASCINATING STUFF. LET'S TURN OUR ATTENTION TO CORPORATE NEWS. NIKE GETS TO ITS FIRST-QUARTER RESULTS , AND FOLLOWING THE EARNINGS MISS IN THE FINAL PERIOD OF FISCAL 2019. IT WAS THE COMPANY'S FIRST SHORTFALL IN YEARS. AN ANALYST JOINS US FROM CHICAGO. HE HAS A BUY RATING ON THE START. MANY HAVE POSITIVE MOOD MUSIC ON THIS COMPANY IN TERMS OF ITS MOMENTUM. WHERE DO YOU THINK IT IS GOING TO BE A KEY DRIVER OF OPTIMISM FOR NIKE AND THESE NUMBERS? > > I THINK THE SENTIMENT GOING INTO THE QUARTER IS QUITE GOOD. A LOT OF THE RETAILERS THAT SELL NIKE SHOES AND APPAREL HAVE REPORTED BETTER RESULTS IN THE LAST QUARTER. I THINK THAT IS GOING TO BE PROVEN IN A NIKE'S RESULTS. SCARLET: IT WILL BE PROVEN IN NIKE'S RESULTS, BUT WHAT SPECIFIC METRIC WILL YOU BE LOOKING FOR? THERE ARE WAYS OF MEASURING 19'S PROGRESS -- NIKE'S PROGRESS. WHICH IS MEANINGFUL TO YOU AND INVESTORS? DAVID: PEOPLE ARE FOCUSING ON OPERATING MARGIN AND GROSS MARGIN. WE ARE LOOKING FOR AN OPERATING MARGIN OF 12.7%. IF THE MARGINS STAY HIGH, THAT WOULD INDICATE THAT THEY ARE NOT DOING A LOT OF DISCOUNTING AND MARKDOWNS. WE ARE LOOKING FOR $10.5 BILLION IN SALES IN THE QUARTER, WHICH IS A LITTLE BIT ABOVE THE CONSENSUS ASSESSMENT. OUR EPS ESTIMATE $.70 ON THE QUARTER. CAROLINE: 5% GROWTH IN REVENUES AND DECENT NUMBERS IN MARGIN IMPROVEMENT. I'M CURIOUS ABOUT A HEADWIND, FX. ARE YOU BRACING YOURSELF WITH ISSUES WHEN IT COMES TO THE DOLLAR? DAVID: IN THE LAST QUARTER THEY FORECAST THAT AFFECTS WOULD BE A HEADWIND. IT IS A LITTLE BIT WORSE THAN ANTICIPATED MONTHS AGO. I DON'T THINK THAT THE FX ISSUE WILL CAUSE THEM TO MISS THE QUARTER. THEY SEEM TO HAVE A VERY STRONG DTC BUSINESS GOING ON RIGHT NOW. THERE APPEARS TO HAVE BEEN VERY LITTLE DISCOUNTING ON THEIR OWN WEBSITE OF THEIR OWN PRODUCT WHICH INDICATES VERY GOOD SELLTHROUGH. SCARLET: WHAT WE KNOW ABOUT NIKE'S RECENT PURCHASE OF THE DATA SIGNS FROM TO BOLSTER DIGITAL CAPABILITIES -- WHAT COULD THE COMPANY SAY THAT WOULD BE MATERIAL TO RESULTS IN THE NEXT QUARTER OR TWO ACT ? DAVID: I DON'T THINK THAT ACQUISITION OR OTHER DATA ACQUISITION ARE ABOUT GENERATING REVENUE. IT IS NOT BUILDING THE TECHNOLOGY PLATFORM IN THEIR ONLINE BUSINESS AND APPS. NIKE INVESTED A BILLION DOLLARS IN ONLINE CAPABILITIES AND THEY CONTINUE TO INVEST HEAVILY. THIS IS A MAJOR ENDEAVOR FOR THEM COME AS THEY ATTEMPT TO GO AROUND THE THIRD-PARTY SELLERS AND SELL DIRECTLY TO CONSUMERS. SCARLET: DAVID SORTS OF MORNINGSTAR WITH WHAT HE EXPECTS FROM NIKE RESULTS. JUST TO RECAP EARLIER HEADLINES, U.S. STOCKS HAVE PARED SOME OF THE LOSSES AFTER THE PRESIDENT TWEETED THAT HE WOULD AUTHORIZE THE RELEASE OF THE UNCLASSIFIED AND UNREDACTED TRANSCRIPT OF HIS PHONE CONVERSATION WITH THE PRESIDENT OF UKRAINE AND HE SAYS HE EXPECTS HIS MEETING WITH THE PRESIDENT TO BE WARM AS WE WILL KEEP BE POSTED ON ANY MARK: I AM MARK CRUMPTON WITH "FIRST WORD" NEWS. PRESIDENT TRUMP SAYS HE WILL RELEASE A COMPLETE TRANSCRIPT TOMORROW OF HIS JULY PHONE CALL WITH UKRAINIAN PRESIDENT VOLODYMYR ZELENSKIY. CONGRESS IS INVESTIGATING WHETHER THE PRESIDENT PRESSURED UKRAINE TO REOPEN A PROBE LINKED TO THE FAMILY OF FORMER VICE PRESIDENT JOE BIDEN IN EXCHANGE FOR RESTORING U.S. MILITARY AID. PRESIDENT TRUMP TWEETED AT THE GENERAL ASSEMBLY THAT THE PUBLIC WILL SEE "IT WAS A TOTALLY FRIENDLY AND APPROPRIATE CALL." BIDEN'S CAMPAIGN SAYS THE PRESIDENTIAL CANDIDATE WOULD BACK IMPEACHING TRUMP IF THE WHITE HOUSE DOES NOT PROVIDE CONGRESS WITH THE DOCUMENTS REQUESTED. BIDEN IS EXPECTED TO ADDRESS THE MATTER IN WILMINGTON, DELAWARE. TURKISH PRESIDENT ERDOGAN USED HIS TIME BEFORE THE U.N. TODAY TO HIGHLIGHT HUMANITARIAN COST OF SYRIA'S CIVIL WAR. ERDOGAN CALLED FOR AN END TO THE NEARLY NINE-YEAR-OLD CONFLICT AND SAID THAT MANY OF THE 3.6 MILLION ASYLUM-SEEKERS RESIDING IN TURKEY ARE SYRIAN. THE SPOKE OF THE KILLING OF SAUDI WRITER JAMAL KHASHOGGI BY SAUDI AGENTS IN THE SAUDI CONSULATE IN ISTANBUL LAST YEAR. JEREMY CORBYN, LEADER OF THE U.K.'S OPPOSITION LEADER PARTY, TOLD HIS CONFERENCE TODAY AT THE HIGH COURT DECISION SHOWS PRIME MINISTER JOHNSON'S CONTEMPT FOR DEMOCRACY AND RULE OF LAW. HE SAID IT IS TIME FOR JOHNSON TO LEAVE OFFICE. MR. CORBYN: GOVERNMENT WILL BE HELD TO ACCOUNT FOR WHAT IT HAS DONE. BORIS JOHNSON HAS BEEN FOUND TO HAVE MISLED THE COUNTRY. THIS UNELECTED PRIME MINISTER SHOULD NOW RESIGN. MARK: MEANTIME, THE SPEAKER OF BRITAIN'S HOUSE OF COMMONS SAYS PARLIAMENT WILL RESUME DELIBERATIONS WEDNESDAY AT 11:30 A.M. LOCAL TIME. HONG KONG'S CHIEF EXECUTIVE THE CARRIE LAM IS CALLING ON PROTESTERS NOT TO DISRUPT HER FIRST PUBLIC DIALOGUE EVENT. 20,000 PEOPLE HAVE SIGNED UP FOR A TOWN HALL-STYLE SESSION THAT WILL HOLD ONLY ABOUT 150 PARTICIPANTS. LAM'S COMMENTS, HEAD OF PROTESTS PLANNED TO COINCIDE WITH THE OCTOBER 1 ANNIVERSARY OF 70 YEARS OF COMMUNIST RULE IN CHINA FOR THE ASIA'S MAIN FINANCIAL HUB SAW ITS 16 STRAIGHT WEEK OF CLASHES BETWEEN OUR DEMOCRACY PROTESTERS AND RIOT POLICE. GLOBAL NEWS 24 HOURS A DAY, ON AIR AND AT TICTOC ON TWITTER, POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN MORE THAN 120 COUNTRIES. I AM MARK CRUMPTON. THIS IS BLOOMBERG. ♪ SCARLET: FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK, THIS IS "BLOOMBERG MARKETS: A CLOSE." I AM SCARLET FU. CAROLINE: I'M CAROLINE HYDE. BREAKING NEWS AND LIVE PICTURES FROM WASHINGTON WHERE HOUSE SPEAKER NANCY PELOSI IS SPEAKING AT AN ATLANTIC COUNCIL EVENT. SHE SAID THAT PRESIDENT TRUMP MAY HAVE COMMITTED AN IMPEACHABLE OFFENSE. SHE HAS DECLINED TO COMMENT ON IMPEACHMENT PROSPECTS. SHE'S MEETING WITH HER PARTY TODAY. RUMORS HIS ROLE AS TO WHETHER OR NOT WE COULD SEE IMPEACHMENT PROCEEDINGS FORCED BY THE HOUSE, . NEVERTHELESS, NEVER HAVE WE HAD SUCH OBVIOUS HIT TO THE MARKET IN TERMS OF THIS POLITICAL RISK BUILDING IN THE NICEST. SCARLET: MIGHT BE ONE OF THE REASONS THAT THE EQUITIES WERE DOWN FOR THE MOST PART ALTHOUGH THEY GOT A TICK HIGHER AFTER PRESIDENTS OF SAID HE WOULD -- PRESIDENT TRUMP SAID HE WOULD RELEASE A TRANSCRIPT OF HIS CONVERSATION WITH THE HEAD OF THE UKRAINE. SAUDI ARABIA IS CONSIDERING DOUBLING THE STATES ON THE OFFER FOR THE ARAMCO IPO. THIS DESPITE THE ATTACKS ON OIL INFRASTRUCTURE IN THE LAST FEW DAYS. SAUDI ARABIA MAY EVENTUALLY FLOW AS MUCH AS 10% OF ARAMCO, DOUBLING HIS INTENTION TO 5%. CRUDE OIL IS DOWN ON THE DAY, AS IS CLEAR THAT SAUDI ARABIA IS MOVING MORE QUICKLY TO RESTORE THE LOST PRODUCTION THEN PERHAPS SOME HAD ESTIMATED EARLIER. CAROLINE: LET'S MOVE AWAY FROM OIL BUT PERHAPS TO TRADE. CHINESE GOVERNMENT HAS GIVEN WAIVERS ON DOMESTIC STATEMENTS FOR SOYBEANS WITHOUT BEING SUBJECT TO RETALIATORY TARIFFS. SARAH MCGREGOR FROM LOS ANGELES LEADS THE ECONOMIC COVERAGE. THE STORY HAS SOMEWHAT MOVED ON INSTEAD. WE HAD GOOD MOOD MUSIC IN THE BEGINNING OF THE DAY, AND THEN SUDDENLY TRUMP TOOK A TOUGH LINE ON CHINA IN HIS U.N. SPEECH, SAYING IT IS MUTILATING CURRENCY AND STEALING INTELLECTUAL PROPERTY. WHERE DO WE STAND IN TERMS OF OPTIMISTIC OR PESSIMISTIC? > > THIS HAS BEEN THE HEART OF TO MAKE DURING THE WHOLE NEGOTIATIONS. THE TRUMP ADMINISTRATION TALKS HARD ABOUT CHINA. THEY CRITICIZED IP POLICIES AND TALK ABOUT CURRENCY MANY RELATION AND NAMED THE TIME AND SEE -- NAMED CHINA A CURRENCY MINUTE LATER A MONTH AGO. ON ONE SIDE WE HAVE THE TRUMP ADMINISTRATION LOOKING TOUGH ON CHINA. ON THE OTHER SIDE THEY WANT TO MAKE A DEAL. WE HAD ANNOUNCEMENT OF THE TREASURY SECRETARY THAT THE TALKS ARE GOING AHEAD WITH THE NEXT ROUND IN THE U.S. IN A COUPLE WEEKS TIME. IN THESE US WONDERING WHERE THEY STAND ON A DEAL. THE U.S. WANTS TO GET THESE ARE CONCESSIONS FROM CHINA, BUT WE ARE HEARING SMALLER THINGS LIKE AGRICULTURE PURCHASES, WHICH HAVE ALWAYS BEEN SOMETHING CHINA PROMISED. ALWAYS HARD TO KNOW WHERE WE STAND. SCARLET: IT IS CLEAR THAT AGRICULTURAL PURCHASES AND FARM TRADING, THEY CAN MAKE SOME PROGRESS. THE NEWS IS ENCOURAGING THAT THEY ARE COMING TO SOME KIND OF AGREEMENT. CONTRAST THAT WITH OTHER AREAS THAT ARE A LITTLE BIT THORNIER, LIKE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS. HOW MUCH AGREEMENT OR COMMON GROUND HAVE THE SITES COME TO? SARAH: WE REPORTED THAT THE TRUMP ADMINISTRATION ITSELF IS CONSIDERING AN INTERIM DEAL WITH CHINA, AND THAT IS PROBABLY COME IF IT DID TRANSPIRE, FOR AGRICULTURE PURCHASES AND SOME SORT OF AGREEMENT ON HUAWEI LICENSES, BUT THE HARDER-CORE ISSUES, ECONOMIC REFORMS TO CHINA'S ECONOMY, THAT IS FOR A CONFERENCE OF WILL BE NEEDED -- CAROLINE: SOUNDS LIKE YOU HAVE A FIRE ALARM GOING ON IN LOS ANGELES NOW. SARAH MCGREGOR, THANK YOU VERY MUCH INDEED. SCARLET: LET'S TALK ABOUT CHRISTINE LAGARDE. SHE IS PREPARING TO TAKE THE HELM OF THE CENTRAL BANK AND WOULD BE THE FIRST WOMAN CHIEF IN HISTORY. FRANCINE LACQUA SET DOWN WITH MADAME LAGARDE AND ASKED FOR HER TAKE IT EUROPE IS PREPARE FOR THE NEXT ECONOMIC DOWNTURN. MS. LAGARDE : EUROPE AND THE EUROZONE HAVE TO GO FURTHER. YOU ARE VERY FAMILIAR WITH EUROPE. IT HAS BEEN A CONTINUING, AND THERE HAS BEEN HIGH MOMENTUM, SLOW MOMENTUM, BUT IT HAS TO BE A CONTINUING AND MORE NEEDS TO BE DONE -- YOU HAVE HEARD THAT MANY TIMES -- COMPLETE THE BACKING UNION AND MAKE SURE THERE IS A EUROPEAN SECURITY MARKET THAT IS DEEPER AND BROADER. AND HAVING ENOUGH OF OF FISCAL SPACE THAT IS IN COMMON, HOWEVER YOU CALL IT. ALL THOSE THREE, WHICH ARE NOT PARTICULARLY GLAMOROUS AND SEXY FOR EUROPEAN CITIZENS, BUT CONSTITUTE THE FOUNDATION AND THE INFRASTRUCTURE ON WHICH THEY CAN THIS DEVELOPMENT AND SECURITY. FRANCINE: SHOULD WE HAVE DONE MORE IN GOOD TIMES TO PREPARE -- MS. LAGARDE: YEAH. YEAH YEAH YEAH. BUT MOST POLICIES UNFORTUNATELY HAVE BEEN PROCYCLICAL. WHEN YOU HAVE GOOD TIMES, PROGROWTH, YOU SPEND. THAT IS THE NATURAL POLITICAL REACTION, AND IT IS VERY HARD TO RESIST. IN BAD TIMES, YOU START REPRESSING AND CONSOLIDATING, WHICH IS EXACTLY THE OPPOSITE APPROACH THAT SHOULD HAPPEN. I AM VERY PLEASED TO SEE THINGS IN EUROPE ARE LOOKING AT THE GROWTH AND STABILITY PACT TO MAKE IT MORE EFFICIENT AND SIMPLE. IT IS SUCH A COMPLEX. -- COMPLEX MYRIAD OF DIFFERENT PACKS. SCARLET: IS THERE ANY TO REVENUE -- FRANCINE: IS THERE A NEED TO HAVE A NEW DIALOGUE? MS. LAGARDE: I'M STRONGLY CONVINCED OF THAT, YES. FRANCINE: WHAT HAPPENS IF WE DON'T HAVE THAT I LIKE? MS. LAGARDE: I DON'T THINK IT IS PEOPLE WANT YOU TALK TO THEMSELVES IN NARROW CIRCLES, BUT YOU ISOLATE YOURSELF WITH JARGONIC STUFF. AND I THINK TO HAVE CONSTANTLY PRESENT IN THE BACK OF HER MIND, AND ON YOUR SCREEN EVENTUALLY, GRANDCHILDREN, CHILDREN, HOW MANY MEMBERS, PEOPLE YOU CARE ABOUT, HOME YOU WOULD LIKE THAT WHO YOU WOULD LIKE TO UNDERSTAND WHAT YOU ARE DOING, FORCES YOU TO EXPLAIN IN SIMPLE TERMS. JAGANI -- JAR GONIC IS A WAY TO DEAL WITH YOUR INSECURITY AND ISOLATE YOURSELF AS A SPEAKING PLAIN AND SIMPLE LANGUAGE IS A GREAT WAY TO HAVE PEOPLE WITH YOU. IT IS A BEAUTIFUL CREATION OF A VISIONARY MAN WHO WANTED TO AVOID WAR YET AGAIN. AND THAT REQUIRES MULTIPLE LAYERS TRUMP -- MULTIPLE LAYERS FROM OUR NATION ALL THE WAY TO DEFENSE AND COMMON ENERGY POLICIES AND STUFF IN MY HOME -- STUFF NOT IN MY HOMEWORK LIST BECAUSE IT IS UP TO THE EUROPEAN COUNCIL TO MOVE FORWARD WITH. I AM CONVINCED THAT THERE IS THAT IMPULSE AND I TRUST THAT THE PRESIDENT OF THE EUROPEAN COMMISSION WILL MOVE IN THAT DIRECTION. CAROLINE: INCOMING ECB PRESIDENT CHRISTINE LAGARDE SPEAKING WITH FRANCINE LACQUA. ANOTHER EUROPEAN-FOCUS STORY ON MY RADAR IS VOLKSWAGEN. PROSECUTORS ARE CHARGING THE COMPANY'S CURRENCY ELS ALL THE BOARD CHAIRMAN AND THE FORMER CEO WITH MARKET MANIPULATION, THIS OVER ALLEGATIONS THAT LEADERS FAILED TO INFORM INVESTORS WILL ENOUGH OVER THE DIESEL EMISSIONS SCANDAL FROM 2015. IN A GMAIL, THEY RESPONDED THAT THE ALLEGATIONS ARE GROUNDLESS AND THEY WILL BE FIGHTING THEM. IRAQ WOULD TAKE PLACE NEXT YEAR -- A TRIAL COULD TAKE PLACE NEXT YEAR AT THE VERY EARLIEST. HE ONLY JUST JOIN THE BUSINESS IN 2015. TO BE TAINTED IN SUCH A WAY, 20 MEMBERS OF THE ADVISORY BOARD WILL MEET TO REVIEW THE SITUATION. SCARLET: YOU USE THE WORD "TAI NT" AND THAT IS A GOOD WORD BECAUSE THERE ARE STUDIES DONE THAT THE WHOLE DIESELGATE SCANDAL HURT CARL SILLS OVERALL. IT COST GERMAN CARMAKERS BILLIONS OF DOLLARS IN SALES BECAUSE VW ADVERTISED THE VALUE OF GERMAN ENGINEERING AND PEOPLE RAN AWAY FROM GERMAN VEHICLES IN THE YEAR AFTER THE SCANDAL ERECTED. CAROLINE: NOT TO MENTION VOLKSWAGEN HAS PUT ASIDE 30 BILLION EUROS, AND TODAY COME IT HAS BEEN A ONE-TWO PUNCH, BECAUSE DAIMLER HAS BEEN FINED IN A SEPARATE INVESTIGATION OF RIGGING VEHICLES. SCARLET: TURNS OUT FOR TARGET IS NOT THE EXCEPTION. WE HAVE SOME BREAKING NEWS OUT OF WASHINGTON FROM SPEAKER OF THE HOUSE NANCY PELOSI. SHE WILL ANNOUNCE FORMAL IMPEACHMENT INQUIRY OF PRESIDENT TRUMP AFTER RESISTING FOR MONTHS. THIS IS ACCORDING TO "THE WASHINGTON POST." THIS IS NOT SOMETHING SHE HAD SAID AT THE ATLANTIC COUNCIL EVENT SHE IS SPEAKING AT THE MOMENT. THIS IS FROM REPORTING DONE BY "THE WASHINGTON POST" THAT HOUSE SPEAKER NANCY PELOSI WILL ANNOUNCE FORMAL IMPEACHMENT INQUIRY OF THE PRESIDENT SHORTLY AFTER SHE IS GOING TO SPEAK. CAROLINE: WE ARE SEEING INDICES TURN THAT MUCH LOWER FOR THE AT SOME POINT WE HAVE SEEN THEM BOUNCE OFF OF THEIR LOWS BECAUSE PRESIDENT FROM SET I'M GOING TO GIVE YOU AN UNREDACTED, FULL BLOW-BY-BLOW ACCOUNT OF WHAT I SAID TO THE UKRAINIAN PRESIDENT. BUT NOW WE ARE COMING BACK ON THE FACT THAT IMPEACHMENT IS A SIGNIFICANT RISK. IT IS POTENTIALLY BECOMING MORE OF A REALITY. SCARLET: LOT OF POLITICAL TURMOIL IN THE MONTHS TO COME. FROM NEW YORK, THIS IS BLOOMBERG. ♪ SCARLET: OUR STOCK OF THE HOUR IS BLACKBERRY, A GLOBAL SECURITY SOFTWARE SUPPLIER, NO LONGER A HANDSET MAKER. SHARES ARE PLUNGING AFTER THE COMPANY, WHICH MAY PRESIDENT OBAMA'S FAVORITE PHONE, MISSED SALES FORECASTS AND CUT GUIDANCE. DAVE WILSON IS LOOKING AT THE DAMAGE DONE. HUGE DROP AT THE OPEN. DAVE: ABSOLUTELY, STOCK DOWN MORE THAN 20%. BIGGEST DECLINE SINCE 2013 WHEN BLACKBERRY WAS IN THE HANDSET BUSINESS. THEY GOT OUT THREE YEARS AGO THIS WEEK, SAYING THEY WOULD NO LONGER DESIGN PHONES. TCL COMMUNICATIONS MAKES PHONES UNDER THE BLACKBERRY NAME. IT HAS BEEN AN UP-AND-DOWN PERIOD, AND TODAY DEFINITELY A DOWN DAY. THEY CAME OF THEIR FISCAL SECOND-QUARTER REVENUE, AND THEY BROUGHT DOWN THE HIGH END OF THE ESTIMATE ON REVENUE GROWTH TO 25%. YOU CAN SEE THAT IT HAS BEEN YEARS SINCE THEY HAD ANY KIND OF GROWTH. NOW YOU HAVE THIS WITH THE PACE OF THAT GROWTH. CAROLINE: AND QUESTION FOR THE ENTIRE TRANSFORMATION OF THE BUSINESS? DAVE: IT IS A QUESTION. THEY BOUGHT A COMPANY THIS YEAR AND ARE IN THE PROCESS OF INTEGRATING IT WITH A PRODUCT, AND THERE ARE SUPPOSED TO BE NEW ONES COMING UP NEXT YEAR, SOMETHING CALLED THE BLACKBERRY INTELLIGENCE SECURITY NOW IN DEVELOPMENT. YOU CAN SEE HOW THE BUSINESS BREAKS DOWN AT THIS POINT. THE INTERNET OF THINGS, A BIG PART OF THAT AS AUTOMOBILES. THEY HAVE SOMETHING THAT DOES THE SOFTWARE TO RUN IN-CAR ENTERTAINMENT SYSTEMS. THEY WOULD LIKE TO GET INTO OTHER INTERNET-CONNECTED DEVICES FOR SURE. LICENSING IS A BIG PIECE OF IT IN TERMS OF SOFTWARE PATENTS. PUT IT ALL TOGETHER, YOU HAVE A COMPANY THAT IS STILL IN THE MIDST OF A TRANSFORMATION, AND THAT CYLA NCE DEAL GIVES THEM SOMETHING TO MOVE ONTO GOING FORWARD. SCARLET: LOOKING TO WIDEN OR INCREASE THE SIZE OF THE PIE OF CYLANCE IN THE INTERNET OF THINGS. DAVE WILSON, THANK YOU SO MUCH. COMING UP, WHAT DO YOU DO WHEN YOU HAVE TONS AND TONS OF MONEY AND SEE RECESSION COMING? A LOOK AT WHAT THE WORLD'S WEALTHIEST PEOPLE ARE DOING. THAT IS NEXT. THIS IS BLOOMBERG. ♪ CAROLINE: LET'S GET TO OUR WALL STREET BEAT, WHERE HE COVERED THREE THINGS WALL STREET IS BUZZING ABOUT. THE WORLD'S WEALTHIEST TURN TO CASH. THEY ARE STOCKPILING CASH AS RECESSION FEARS LOOM. SOFTBANK EXECUTIVES ARE AGAINST TAKING ON LARGE PERSONAL NOTES TO BUY INTO THE JAPANESE PORTFOLIO OF TECHNOLOGY COMPANY. AND QUIETLY SETTLING AT HARASSMENT CASE AGAINST A CHIEF EXECUTIVE. THE LUCRATIVE INSURANCE UNIT SETTLED A POTENTIALLY EXPLOSIVE COMPLAINT BY A FEMA EMPLOYEE AGAINST THE CHIEF EXECUTIVE. WHAT A LOT TO GET TO. TAKING US THROUGH FIRST OF ALL, WHAT THE WORLD'S WEALTHIEST ARE RUNNING FROM. A BRILLIANT TAKE ON HOW FAMILY OFFICES ARE PLAYED WITH WHAT TO DO WITH SO MUCH MONEY. > > WE WERE SITTING HERE A COUPLE WEEKS AGO TALKING ABOUT THE CALL IT UBS, TURNING MY STAFF FROM THE FIRST TIME IN A LIFETIME. THAT IS WHAT WE ARE SEEING WITH UBS' CLIENTS. SOUNDS LIKE WARREN BUFFETT, BUILDING UP THE CASH FILE QUITE A BIT. SOMEBODY WAS AGAINST THE IDEA IS BILL GATES. HE SPOKE TO ERIK SCHATZKER A LITTLE WHILE AGO HE KEPT A LOT OF MONEY IN STOCKS, BUT YOU DO HAVE A LOT OF PEOPLE WHO ARE SAYING IT IS NOT WORTH THE RISK. WITH SKYHIGH VALUATIONS, LET'S TAKE THE MONEY OFF THE TABLE AND WAIT UNTIL THINGS PLUNGE TO GET IN AGAIN. SCARLET: BEING EXTRA CAUTIOUS AND WAITING FOR THE NEXT SHOE TO DROP. IF YOU ARE A SOFTBANK SENIOR EXECUTIVE, ONE PLACE YOU MIGHT BE PUTTING YOUR CASH IS IN THE INVESTMENT FUNDS. I DIDN'T REALIZE THAT EMPLOYEES WERE SUCH A BIG CONTRIBUTOR AS A GROUP TO THE FUNDS. SONALI: THEY TRULY ARE. ALSO A HUGE CONTRIBUTOR HIMSELF -- THE THING IS, THE REPORTING IS PRETTY REMARKABLE, BECAUSE THEY WANT EMPLOYEES TO BORROW 10 10 TIMES AGAINST THE BASE SALARY TO CONTRIBUTE TO THESE FUNDS. WE STILL HAVE SOME DOUBTS FROM PIS, THE SAUDI INVESTMENT FUND COME IN TERMS OF INVESTING IN THE NEXT FUND AS WEWORK PLEDGES FOR -- AS WEWORK PLUNGES. CAROLINE: APPARENTLY IS A TEST OF YOUR LOYALTY -- SCARLET: IT IS NOT CONDITIONAL. IT IS NOT IMPERATIVE YOU HAVE TO INVEST IN THIS, IS IT? SONALI: IT IS A SIGN OF LOYALTY. YOU WANT TO BE ON THE BOSS 'S SIDE, DON'T YOU? CAROLINE: SPEAKING OF BOSSE AND WHETHER YOU WANT TO BE ONS THOSE I TALK ABOUT WHAT WAS HIDDEN HEAD OF AN IDEA OF ONE UNIT OF APOLLO. SONALI: ATHENE SELLS ANNUITIES, ONE OF THE BIGGEST IN AMERICA. THESE PUBLIC DOCUMENTS IN CALIFORNIA FOUND THAT A WOMAN WHO WORKS FOR THE CEO OF ATHENE HAVE THESE HARASSMENT COMPLAINTS, AND THESE WERE SETTLED MONTHS BEFORE IT WENT PUBLIC. ATHENE IS ONE OF THE BIGGEST MONEYMAKERS FOR APOLLO. ONE COMES NEXT IS WHAT HAPPENS IN TERMS OF SPOTLIGHT ON THE CEO. SCARLET: THESE COMPLAINTS WERE SETTLED THROUGH ARBITRATION, I TAKE IT? IS THERE GOING TO BE SOME KIND OF LEGAL ACTION AGAINST THE COMPANY? SONALI: REPORTING SHOWED THAT THEY LEFT THE OPPORTUNITY FOR IT, BUT NOTHING HAS HAPPENED IN THE SETTLEMENT. IT HAS BEEN VERY, VERY QUIET. THIS WAS YEARS AGO, 2015, 2016 AT THE.--2016 IPO. CAROLINE: IT MIGHT BE WORTH NOTING THAT A JOINT STATEMENT WAS FILED AND THEY SAID THAT ATHENE HAS AN INTENSE PERFORMANCE-BASED CULTURE, AND THIS MATTER INVOLVES A DISSATISFIED EMPLOYEE WHO LEFT THE COMPANY. AFTER RECEIVING THE COMPLAINT FROM INDEPENDENT OUTSIDE COUNSEL CONDUCTED REVIEW AND FOUND EVIDENCE OF HARASSMENT, DISCRIMINATION, OR OTHER ILLEGAL CONDUCT. THE MATTER WAS SETTLED IN ORDERLY COURSE TO AVOID MUCH HIGHER COST AND THE STRUCTURED OF LITIGATION." SCARLET: IS THAT A DENIAL OR MORE OF A DISMISSAL? CAROLINE: IT IS VERY LONG. SCARLET: A LOT OF LAWYERS CONTRIBUTED TO DESTINY. OUR THANKS TO SONALI BASAK. WE WILL START WITH BEST BUY. IT HAS ITS SIGHTS ON MORE THAN JUST COMPUTERS AND TV'S. THE CEO IS EYEING HEALTH CARE IS THE NEXT BIG THING. BEST BUY'S PLAN INCLUDES HIRING THE FIRST CHIEF MEDICAL OFFICER. AMAZON IS THE SET TO UNVEIL A NEW ALEXA-DRIVEN DEVICE ON WEDNESDAY FOR IT IS NOT SAID WHAT PRODUCTS ARE COMING, BUT BLOOMBERG PREVIOUSLY REPORTED IT IS WORKING ON ALEXEI AND HOWARD E -- ALEXA-POWERED EARBUDS AND A DOMESTIC ROBOT. THE CONSUMER TECHNOLOGY ASSOCIATIONS IS ABOUT 31% OF U.S. HOUSEHOLDS CURRENTLY OWN A SMART SPEAKER. GOOGLE HAS WON THE LATEST FIGHT IN THE BATTLE OF WHERE TO DRAW THE LINE BETWEEN PRIVACY AND FREEDOM OF SPEECH. A EUROPEAN UNION COURT HAS RULED IN FAVOR OF THE TECH GIANT IN THE " RIGHT TO BE FORGOTTEN" CASE. THE COURT SAYS SEARCH ENGINES SHOULD REMOVE RESULTS ON EUROPEAN VERSIONS OF ITS WEBSITES BUT ARE NOT REQUIRED TO SCRUB LINKS GLOBALLY. THAT IS YOUR "BUSINESS FLASH" UPDATE. NOT OFTEN THAT GOOGLE WILL WIN WHEN IT COMES TO EUROPEAN PRIVACY. CAROLINE: AND NOT HAVE TO PAY ANY SORT OF FINE. SCARLET: INFAMOUSLY RELATIVE, OF COURSE. CAROLINE: LET'S HAVE A LOOK AT THE REST OF THE TECH SPACE. CHIPMAKERS, WHETHER IT COMES TO CONCERNS ABOUT TRADE BECAUSE TRUMP TALKING TOUGH ON CHINA, BUT ALSO ON SOME OF THE POWER THAT IS EXERTED BY BIG SOCIAL-MEDIA COMPANIES, AND ONCE AGAIN CONCERNS ABOUT LEGAL ISSUES PUSHING NASDAQ LOWER AND EMERGING MARKETS LOWER. IT IS NOTABLE THAT WE ARE COMING OFF OF OUR VERY MUCH LOWS BUT STILL RUMORS ABOUT WHETHER WE COULD SEE SOME SORT OF IMPEACHMENT IN THE UNITED STATES HAS BEEN DRIVING SENTIMENT. SCARLET: ALTHOUGH THAT IS GOING TO BE A VERY SLOW-MOVING PROCESS, FOR NOW THAT THE HEADLINE IS COME OUT, EVERYONE IS BRACING FOR THAT DISRUPTION TO THE MARKETS. WITH WARDING IS THAT THE NASDAQ IS FALLING 1150-DAY MOVING -- FALLING BELOW THE 50-DAY MOVING AVERAGE. LOOKING AT THE BID FOR TREASURIES AS WELL. DATA OUT OF THE U.S. AND DATA OUT OF GERMANY MOVES PEOPLE TOWARDS SAFE HAVENS. 10-YEAR YIELD AT 1.64%. POUND ALSO STRONGER. MORE ON THAT. THIS IS BLOOMBERG. MARK: I'M MARK CRUMPTON WITH BLOOMBERG'S FIRST WORD NEWS. MULTIPLE LAWMAKERS AND CONGRESSIONAL LEADERS SAY NANCY PELOSI AND TOP DEMOCRATS ARE PRIVATELY DISCUSSING THE CREATION OF A SELECT MANY TO CONDUCT A POSSIBLE IMPEACHMENT OF PRESIDENT TRUMP. SPEAKER PELOSI WILL MAKE A FORMAL ANNOUNCEMENT LATER TODAY. SPEAKING AT AN EVENT IN WASHINGTON, THE SPEAKER WAS PRESSED TO COMMENT ON WHERE SHE STANDS ON THE HOUSE POSSIBLY STARTING AN IMPEACHMENT INQUIRY AGAINST THE PRESIDENT OVER RECENT REPORTS RELATED TO UKRAINE AND THE UPCOMING U.S. PRESIDENTIAL ELECTION. SPEAKER PELOSI DECLINED TO COMMENT DIRECTLY. AS FOR THE PRESIDENT, HE ANNOUNCED THAT ON WEDNESDAY HE WILL RELEASE THE FULL TRANSCRIPT OF THE JULY CALL WITH UKRAINIAN PRESIDENT. MR. TRUMP HAS ACKNOWLEDGED HE DISCUSSED FORMER VICE PRESIDENT JOE BIDEN IN THAT CALL, INCLUDING THAT "YOU WILL SEE IT WITH A VERY FRIENDLY AND TOTALLY APPROPRIATE CALL, NO PRESSURE." THE PRESIDENT SAYS IRAN IS LASHING OUT AT OTHER COUNTRIES FOR THE PROBLEMS IT HAS CREATED. SPEAKING AT THE U.N. GENERAL IS SOMETHING TODAY, THE PRESIDENT SAID IRAN IS LINK WARS IN SYRIA AND YEMEN IN A FANATICAL QUEST FOR NUCLEAR WEAPONS. PRESIDENT TRUMP: NO RESPONSE WILL GOVERNMENT SHOULD SUBSIDIZE IRAN'S BLOODLUST. AS LONG AS IRAN'S MENACING CONTINUES, SANCTIONS WILL NOT BE LIFTED. THEY WILL BE TIGHTENED. MARK: THE PRESIDENT ALSO TOLD THE GENERAL ASSEMBLY THAT WISE LEADERS PUT THE FUTURE OF THEIR OWN PEOPLE AND COUNTRY FIRST. IN THE INDONESIAN CAPITAL, A PROTEST INVOLVING THOUSANDS OF STUDENTS TURNED VIOLENT TODAY. POLICE FIRED TEAR GAS TO DISPERSE THOUSANDS OF ROCKTHROWING DEMONSTRATORS. PROTESTERS BURNED FIRES -- BURNED TIRES AND SET FIRES. GLOBAL NEWS 24 HOURS A DAY ON AIR AND AT TICTOC ON TWITTER POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I'M MARK CRUMPTON. THIS IS BLOOMBERG. ♪ CAROLINE: IT IS 3:00 P.M. IN NEW YORK, 8:00 P.M. IN LONDON. LIVE FROM BLOOMBERG WORLD HEADQUARTERS, I'M CAROLINE HYDE. SCARLET: I'M SCARLET FU. THIS IS "BLOOMBERG MARKETS: THE CLOSE." CAROLINE: NANCY PELOSI IS PLANNING A FORMAL IMPEACHMENT INQUIRY INTO PRESIDENT TRUMP AMID REPORTS HE MAY HAVE INVESTIGATED JOE BIDEN. NANCY PELOSI SPEAKING WITH REPORTERS AT 5:00 P.M. EASTERN. TREASURIES RALLY WITH GOLD AS THE S & P 500 FALLS. TRADE TENSIONS AMID POLITICAL TURMOIL HITTING THE MARKET. WEWORK REWRITES. ADAM NEWMAN WILL STEP DOWN AS CEO AS THE COMPANY TRIES TO SALVAGE ITS IPO DEBACLE. ALL THAT AND MORE COMING UP. BUT FIRST, WE HAVE SOME BREAKING NEWS. MORE WITH WORLD LEADERS SPEAKING AT THE UNITED NATIONS GENERAL ASSEMBLY. THIS ONE BEING FRENCH PRESIDENT EMMANUEL MACRON TALKING ABOUT MY -- ABOUT IRAN. HE SAYS, WE NEED TO TAKE THE RISK OF BUILDING PEACE IN THE REGION. HE IS CURRENTLY CONTINUING TO SPEAK. WE WILL MAKE SURE WE MONITOR ANY OF THE HEADLINES. SCARLET: WHEN YOU LOOK AT EQUITY MARKETS, THERE IS PRESSURE. OF COURSE, IT COMES FROM A DIFFERENT RANGE OF SOURCES, WHETHER ECONOMIC DATA, COMMENTS FROM THE PRESIDENT ON TRADE, ON BIG CAP TECH NAMES, AND WHETHER IT IS JUST EXHAUSTION WITH LONG-RUNNING STORIES THAT HAVE YET TO REACH A RESOLUTION AS WELL. THE NASDAQ BELOW 8000. APPROACHING THE 100 DAY MOVING AVERAGE. INVESTORS NOW THINKING THERE WILL BE MORE SCRUTINY FROM ANTITRUST REGULATORS ON THE LIKES OF FACEBOOK, NETFLIX, ALPHABET. CAROLINE: TRUMP TALKING ABOUT THE IMMENSE POWER ACQUIRED BY SUCH BUSINESSES. INTERESTING WE ARE SEEING OIL IN THE LINE OF FIRE ONCE AGAIN AREA -- AGAIN. OR MAYBE IT IS THE MOOD MUSIC TURNING SOUR WHEN IT COMES TO U.S.-CHINA TRADE AND GROWING GLOBAL CONCERNS. SCARLET: ACROSS THE SPECTRUM AS WELL. BIG CAP AND SMALL-CAP THE WORST PERFORMERS IN THE S & P. THE ETF THAT TRACKS TREASURIES RESUMING THE VALLEY AFTER FINISHING LITTLE CHANGED YESTERDAY. STERLING GETTING A LIFT BY HALF OF 1%, NOW APPROACHING 125. THIS AFTER THE SUPREME COURT RULED THAT BORIS JOHNSON'S SUSPENSION OF PARLIAMENT WAS UNLAWFUL. CAROLINE: ILLEGAL. WE WILL BE DISCUSSING THE POUND MORE IN A MOMENT. SCARLET: IN THE MEANTIME, LET'S DIVE DEEPER INTO TODAY'S ACTION WITH OUR MARKETS REPORTERS. TAYLOR, YOU ARE IN SAN FRANCISCO. WHAT ARE YOU WATCHING? TAYLOR: SHARES ARE UP 2% DESPITE THE BROADER MARKETS BEING DOWN TODAY AFTER AN ANALYST UPGRADED THE SHARES TO A BUY AND RAISED THE PRICE TARGET TO $55 A SHARE FROM $140. IT ALL COMES BACK TO CHINA. RECAPTURING AND THE STIMULUS CONTINUES TO BOOST BUSINESS OVER THERE. THAT IS WHAT IS DRIVING THE SHARES HIGHER. IF YOU TAKE A LOOK AT THE CHART I AM SHOWING IN THE BLOOMBERG TERMINAL, YOU CAN SEE ANALYSTS, THE PRICE TARGET IS $137. IT IS HERE AT $110. ANALYSTS ARE BULLISH ON THE UPSIDE FOR THE STOCK. DON'T FORGET IT IS IMPORTANT. 75% OF THE REVENUE COMES FROM MACAU. 34% COMES FROM THE WIND. STILL A LOT OF EXPOSURE. THEY CAME OUT WITH THE NEW BOSTON PROPERTY AS WELL. OUR ANALYSTS ARE SAYING IT HAS BECOME A TABLE GAME POWERHOUSE. ABIGAIL: UNTHINKING ABOUT TODAY'S STOCK MARKET PULLBACK. AT ONE POINT, A REAL SELLOFF. NOT A SURPRISE TO ALL INVESTORS. YOU SEE A PRETTY GOOD RALLY FOR BONDS. COMING IN 26 BASIS POINTS. A RALLY FOR BONDS HERE WITH THE 10 YEAR YIELD. YOU HAVE THE REPO UNCERTAINTY. TRADE UNCERTAINTY. PRESIDENT TRUMP AND THE U.N. WE COULD SEE STOCKS WITHDRAW, BUT BONDS AS WELL. TAKE A LOOK AT THE FIVE-YEAR CHART OF THE 10 YEAR YIELD IN RELATION TO THE MOVING AVERAGE. WHEN IT HAS GONE BELOW THE 50 DAY AVERAGE, IT HAS CONTINUED TO WHIPSAW FOR WEEKS, MONTHS, IN SOME CASES EVEN AN ENTIRE YEAR ALMOST. THERE IS GOOD REASON TO THINK WE CAN CONTINUE TO LIFT ALL AROUND CURRENT LEVELS AS INVESTORS WORK FOR SOME STRONG DIRECTIONAL QUEUE FOR BONDS AND STOCKS. LUKE: WHAT IS THE APPROXIMATE COST OF THE MOVE IN THE MARKET? THERE WILL BE A TEMPTATION TO SAY IT IS TRADE. THE SEMI CONDUCTORS INDEX REACTING TO TRADE CAN -- TRADE CONCERNS. THERE IS SOMETHING ELSE AT LEAST CONTRIBUTE INTO A LOT OF THE MARKET NEXT. LET'S TAKE A LOOK FIRST AT THE PERFORMANCE IN THE CHINESE U.S. CENTRIC STARTS AT THE TOP. TYPICALLY YOU CAN SEE IN THE BOX AREAS WHEN TRADE IS DRIVING THE BUS, THE S & P 500 IS NORMALLY BEATING THE STOCKS BY AT LEAST 1%. TODAY, THAT GROUP, LESS THAN HALF OF A PERCENT. THE BOTTOM PANEL, WE HAVE THE SPREAD ON THE 2026 HUAWEI BONDS. YOU SEE IT IN MAY AND AUGUST, THE SPREADS WIDENING FAIRLY DRAMATICALLY AS TRADE TAKES THE LEAD IN MARKETS. TODAY, THAT IS ACTUALLY NARROWING. THAT SUGGESTS THAT IS NOT RUBBING MARKETS. WHAT MIGHT BE? WE LOOK AT THE 12-10, 2-10, AND NETSUITE FROM THE PRESIDENT ABOUT RELEASING THE TRANSCRIPT, IT SEEMS LIKE THIS IS THE FIRST DAY IMPEACHMENT CONCERNS REALLY STARTED TO MANIFEST IN THE DAILY PRICE ACTION FOR STOCKS. CAROLINE: WHAT A GREAT SET UP. WE WILL CONTINUE TO TALK ABOUT THE EFFECT THAT GEOPOLITICS IS HAVING UPON THE MARKET TODAY. LET'S LOOK AT THE POUND CLIMBING AFTER THE UKASE UP IN COURT RULED THAT BORIS JOHNSON'S SUSPENSION OF PARLIAMENT WAS UNLAWFUL. FOR MORE, NICK. WE WILL START ON ALL THINGS BORIS JOHNSON. I MEAN, WHAT ANOTHER ASTONISHING DAY IN UNITED KINGDOM POLITICS. WHY IS THE POUND UP? WHAT HOPE IS THERE THAT HAVING PARLIAMENT BACK BY WEDNESDAY WE MIGHT AVOID SOME CRUSHING OUTCOME OCTOBER 31? NICK: I DO NOT KNOW IF IT IS GOING TO AVOID IT ENTIRELY, BUT A DELAY AT LEAST UNTIL JANUARY 31. I THINK JUST A DELAY, A REPRIEVE, A STAY OF EXECUTION, SHALL WE SAY, IS ENOUGH TO GIVE THE MARKETS SOME RELIEF AND SEE THE POUND MOVE HIGHER. ALSO A CHANCE FOR DIFFERENT DYNAMICS TO PLAY OUT OVER THE THREE MONTH PERIOD. SCARLET: A LOT CAN HAPPEN. OPTIONS ARE ON THE TABLE. THE DEFAULT OPTION IS A NO DEAL BREXIT EVEN THE PARLIAMENT HAS PREVENTED BORIS JOHNSON FROM LEAVING THE EU WITHOUT A DEAL. WHAT EXACTLY IS PRICED INTO THE POUND? NICK: I THINK I WOULD ARGUE THERE IS A LOT OF HOPE THAT COOLER HEADS WILL PREVAIL. I THINK THE POUND IS 124, 125 BASED ON A DEAL BEING REACHED. SCARLET: BY OCTOBER 31? NICK: BY JANUARY 31 OR AT SOME POINT IN THE FUTURE. YOU KNOW, IF THE DEAL COMES TO PASS, A COUPLE OF THINGS HIGHER ON THE POUND, 125, 126, 127. THE BIGGER SURPRISE WOULD BE A NO DEAL. YOU WOULD SEE A BIGGER REACTION MAYBE BELOW 120 ON THE NEGATIVE OUTCOME. CAROLINE: IS ANYONE ASKING YOU ABOUT WHAT THE POUND DOES? WHAT GENERAL U.K. ASSETS ARE LOOKED AT LIKE IF WE GET A JEREMY CORBYN-LED SOME WAY? NICK: THAT IS A QUESTION BEING ASKED A LOT. WE WILL HAVE TO SEE. JEREMY CORBYN IS PERHAPS NOT AS MARKET FRIENDLY OR MARKET CONVENTIONAL. I SUSPECT ON THAT SCENARIO YOU MIGHT EVEN SEE A LITTLE BIT OF WEAKNESS, BUT IF YOU DIDN'T HAVE A NO DEAL BREXIT, NEGATIVE BUT PROBABLY NOT AS NEGATIVE. SCARLET: LAST QUESTION FOR YOU ON THE POUND BEFORE WE MOVE ON. STERLING BELOW $1.20 ON SEPTEMBER 3. IS NOT THE BOTTOM? WHAT CAN -- IS THAT THE BOTTOM? WHAT CAN GET US BELOW? NICK: IT IS THE BOTTOM UNTIL WE FIND OUT WHETHER WE HAVE A DEAL OR DON'T HAVE A DEAL. THE SCENARIO THAT GETS US BELOW THE $1.20 THAT YOU MENTIONED IS WE HAPPY DISORDERLY BREXIT, THE TARIFFS REINTRODUCED, AND WE ARE NOT SURE WHAT WE ARE DOING WITH THE IRISH BORDER. YES, WE PROBABLY DO GET CLOSE OR GO BELOW. THAT IS A RISK. NOT A TERRIBLE RISK, SO WE WILL BE WATCHING THAT. CAROLINE: WE JUST HAD BREAKING NEWS. BORIS JOHNSON SPOKE TO THE QUEEN BY PHONE TODAY. AT THE MOMENT, WE UNDERSTAND THEY SPOKE ON CONDITION OF ANONYMITY, BUT PARLIAMENT WILL BE ADDRESSED ON WEDNESDAY WHEN THEY RECONVENE. LET'S SWITCH GEARS AND TALK ABOUT THE POLITICAL THINGS UNFOLDING IN THE UNITED STATES. RUMORS OF IMPEACHMENT. CONCERNS ABOUT IT. WILL THEY AFFECT THE DOLLAR? NICK: NOT A LOT. THE CLEAREST LINK BETWEEN POLITICS AND PRESIDENT TRUMP AND THE DOLLAR IS THE RELATIVELY FORCEFUL APPROACH HE HAS TAKEN TO THE TRADE NEGOTIATIONS. AT TIMES OVER THE SUMMER WHEN YOU SAW TRADE ESCALATIONS OR TENSIONS, A BEEN APPEASING AND THEN WEAKENED THE DOLLAR. THAT'S A BIT OF -- A BIT OF EASING AND THEN WEAKENED THE DOLLAR. IN TERMS OF HOW FORCEFUL HE IS WITH CHINA, IF HE LOOSENS A BIT, THAT COULD MAKE THE DOLLAR GO HIGHER AND YOU DO NOT HAVE THE GLOBAL SHOP. NOT CLEAR THE PRESIDENT WILL CHANGE HIS APPROACH. WATER HAS TO FLOW UNDER THE BRIDGE FROM IMPEACHMENT PROCEEDINGS AND SO ON AND SO FORTH. A MIXED OUTLOOK. AT THE MARGIN, POSITIVE. SCARLET: DAY IN AND DAY OUT WHEN YOU LOOK INTO THE PRESIDENT'S TALKS, TWEETS, HOW IS HE TRYING TO MOVE THE U.S. DOLLAR? DO YOU SEE OR READ IN HIS COMMENTS A DIRECT ATTEMPT TO PUSH IT LOWER? NICK: NO, I DON'T THINK SO. I DO NOT THINK THAT IS AT THE FOREFRONT OF THE PRESIDENT'S MIND. OF COURSE, I AM NOT SURE WHAT HIS KEY MOTIVATION IS BUT FROM WHERE I SIT, HIS PRIMARY MOTIVATION IS TO TRY AND READJUST THE TRADING RELATIONSHIP WITH CHINA. NOW, HE WOULD LIKE THE FEDERAL RESERVE, AND HAS ESPECIALLY STATED, THEM TO LOWER THE INTEREST RATE. SCARLET: THAT IS THIS TRANSITION MECHANISM. NICK: AND HE WOULD LIKE A SOFTER DOLLAR BUT THAT IS SECONDARY OR TERTIARY TO THE WEAKER DOLLAR RELATIVE TO THE TRADE NEGOTIATIONS SO AS A BYPRODUCT BUT NOT A GOAL. CAROLINE: FOR A LOT OF THESE COMPANIES, RELENTLESS STRENGTH OF THE U.S. DOLLAR. IT SEEMS AS THOUGH WHEN TIMES ARE TOUGH, EVEN FOR THE U.S. ECONOMY, THE DOLLAR IS STILL BEHAVING. WHEN TIMES ARE GOOD FOR THE REST OF THE GLOBAL ECONOMY, THE U.S. ARE PERFORMED SO WHY NOT GO INTO THE DOLLAR ANYWAY. NOT WEAKENING FROM A FEDERAL RESERVE POINT OF VIEW. WHICH WAY DOES THE DOLLAR GO? NICK: I GUESS I WILL RESPOND TO YOUR PERSON BY SAYING TIMES HAVE NOT BEEN THAT GOOD FOR THE GLOBAL ECONOMY FOR QUITE A WHILE, WHICH IS WHY WE SEE THE EURO OR POUND OUTSIDE OF POLITICS DO ESPECIALLY WELL. IF WE SEE A MORE CONVINCING RECOVERY IN EUROPE, WE CAN SEE THE CURRENCY STRENGTHEN AND THE DOLLAR WEAKENED. THAT IS NOT LOOK LIKELY AT THIS POINT IN TIME. CONCERNS ABOUT INFLATION AND THE POLICY RECENTLY. SCARLET: NICK, THANK YOU SO MUCH FOR TAKING US AROUND THE WORLD WITH YOUR THOUGHTS ON THE FX MARKET. NOW, WE ARE AWAITING FORMER VICE PRESIDENT JOE BIDEN TO SPEAK TO REPORTERS. HE IS SET TO ADDRESS THE GROWING CONTROVERSY OVER PRESIDENT TRUMP'S ALLEGED ATTEMPTS TO PROD THE UKRAINIAN PRESIDENT TO INVESTIGATE JOE BIDEN'S SON. THE PRESIDENT SAID HE WILL ORDER THE RELEASE, THE COMPLETE UNREACTED RELEASE OF THE TRANSCRIPT OF HIS PHONE CALL WITH THE UKRAINIAN PRESIDENT. WE WILL BRING YOU JOE BIDEN'S COMMENTS WHEN HE APPROACHES THE STAGE IN MOMENTS. THIS IS BLOOMBERG. ♪ CAROLINE: WE HAVE HAD SO MUCH POLITICAL NEWS COMING FROM THE UNITED STATES. PRESIDENT TRUMP SAYING HE WILL RELEASE TRANSCRIPT OF A JULY PHONE CALL WITH UKRAINIAN PRESIDENT TOMORROW. THIS AS A REPORT THAT NANCY PELOSI WILL FILE AN IMPEACHMENT INQUIRY AGAINST THE PRESIDENT. JOINING US IS KEVIN CIRILLI. AND YOU ARE JOINED BY A KEY LAWMAKER. KEVIN: YES, THANK YOU. A HOST OF DEVELOPMENTS. I AM HERE WITH THE CONGRESSMAN. NANCY PELOSI HAS SAID SHE WILL LATER THIS EVENING ANNOUNCED THAT THEY ARE GOING TO MOVE AHEAD WITH IMPEACHMENT. PRESIDENT TRUMP SAID HE IS GOING TO RELEASE THE TRANSCRIPT OF HIS CONVERSATION WITH THE UKRAINIAN PRESIDENT. SHOULD IMPEACHMENT PROCEEDINGS START? > > NO. FROM MY PERSONAL STANDPOINT, NO. I DON'T THINK THERE HAS BEEN ANY SITUATION THAT HAS HAPPENED THAT WOULD INDICATE HE HAS COMMITTED ANY SORT OF CRIME THAT WOULD BE IMPEACHABLE. RIGHT NOW, IT IS ABOUT POLITICS. IT IS ABOUT TRYING TO FILL THIS AURA OF NEGATIVITY AROUND HIM AND HIS CAMPAIGN COMING UP. THIS IS JUST TRYING TO MUDDY THE WATERS FOR THE CAMPAIGN. NOTHING SERIOUS HERE. IT WOULD HAVE BEEN DISCOVERED A LONG TIME AGO. FALSE REPORTS BASED ON UNFOUNDED HEARSAY AND NO EVIDENCE WHATSOEVER. WE WILL FIND OUT I AM SURE THE SITUATION IS THE SAME THING THERE. THE SPEAKER WANTS TO PULL THIS KIND OF A STUNT. MORE POWER TO HER BUT IT IS ANOTHER WASTE OF OUR TIME WHEN WE HAVE OTHER ISSUES WE CAN WORK ON AND IT SHOWS WEAKNESS OF HER POLICIES AND IDEAS AND THE DEMOCRATIC INTERNET THAT THEY ARE RUNNING OUT THAT THEY CANNOT DO ANYTHING OTHER THAN FOCUS ON THIS. KEVIN: SHOULD THE FORMAL COMPLAINT BE RELEASED FOR THE PUBLIC, AS DEMOCRATS HAVE SAID? REP. LUETKEMEYER: I THINK SO. WHY NOT HAVE THIS? KEVIN: YOU WOULD BE FINE IF THE WHISTLEBLOWER COMPLAINT WAS MADE PUBLIC? REP. LUETKEMEYER: YES. LET US SEE WHAT IS THERE. SUPPOSEDLY IT IS HEARSAY. LET US SEE WHAT YOU HEARD. LET'S SEE SOME DOCUMENTATION. THEY WANT TRANSPARENCY AND EVERYTHING. WHEN THEY TRY TO DO SOMETHING, THERE IS NO TRANSPARENCY. IN THIS SITUATION, NO TRANSPARENCY AT ALL. IF SOMEBODY ATTRACT TO MAKE AN ACCUSATION BASED ON HEARSAY , THAT IS NOT UNDER LAW IN THIS COUNTRY BUT THEY ARE TIME TO MAKE SOMETHING OF THIS. THIS IS CONTORTING OUR WHOLE SYSTEM, MOVING IT UPSIDE DOWN. KEVIN: YOU HAD A HEARING EARLIER TODAY. WHAT WOULD IMPEACHMENT PROCEEDINGS MEAN FOR BUSINESS AS USUAL ON CAPITOL HILL? REP. LUETKEMEYER: IT IS DISTRACTING. WE HAVE A LOT OF ISSUES THAT NEED TO BE ADDRESSED. WE HAVE A GREAT ECONOMY GOING. WE WILL KEEP IT GOING. WE WILL FINE-TUNE IT. AND MAKE SURE IT CONTINUES ON THE RIGHT TRACK. THIS IS DISTRACTING FROM SOME OF THE BUSINESS BEING CONDUCTED. YES, ABSOLUTELY. WE TALKED THIS MORNING WITH THE CHAIRMAN OF THE SEC AND HIS GROUP OF COMMISSIONERS, WHICH WE THANK THEM FOR APPEARING. ALL OF US HAVE INTERESTS AND CONCERNS ABOUT CERTAIN ISSUES. A LOT OF GREAT QUESTIONS BEING ANSWERED WITH REGARDS TO CAPITAL MARKETS AND THE ADMINISTERING OF THE RULES AND REGULATIONS. IT IS A TERRIFIC PART -- IT IS A VERY BIG PART. IMPORTANT WE GET THIS RIGHT. ACCESS TO CAPITAL AND CREDIT FOR CITIZENS IN OUR COUNTRY. IT IS A VERY IMPORTANT HEARING. I THOUGHT HE DID A GREAT JOB. KEVIN: WHAT DID YOU FIND OUT? REP. LUETKEMEYER: MY COMMENTS AND QUESTIONS WERE WITH REGARD TO -- KEVIN: YOUR FAVORITE. [LAUGHTER] REP. LUETKEMEYER: YES. FROM MY STANDPOINT OF BEING THE RANKING MEMBER AND FORMER CHAIRMAN OF THE COMMITTEE THAT OVERSEES THE BANKS AND REGULATORS AND ALL THE CONSTITUENCIES OF THAT, THIS IS A REALLY BIG DEAL. THE BOARD OUT HERE PROMOTING A PRINCIPLE ON WHICH THEY HAVE BEEN NO SURVEYS OR STUDIES. THEY HAVE ADMITTED THIS IS WHAT I HAVE DONE. TO PUT OUT A RULE THAT HAS THIS BROAD OF A SCOPE, THE BROADEST SCOPE ACROSS OUR ECONOMY, IT IS A SOLUTION. I BELIEVE IT WILL CREATE A PROBLEM. I'M TRYING TO FIGHT THIS THING. IF I AM WRONG, THAT IS FINE. IF I AM I, WE WILL HAVE A SERIOUS PROBLEM OUT HERE. A LOT OF PATCHING UP OF THE HOLES IF THIS THING GOES THROUGH. IT COULD DO LIKE MARKET TO MARKET IN 2008. IT EXACERBATES THE ECONOMY'S SITUATION AT THE TIME. I EQUATED IT TO A GUY DROPPING A ROCKET. THE PREVIOUS MARKET BLUE UP. WE ARE SITTING ON ANOTHER ROCKET. KEVIN: YOU ARE SPEAKING MY LANGUAGE. REP. LUETKEMEYER: I THINK THIS IS A SERIOUS SITUATION THAT WE ARE NOT TAKING SERIOUSLY. ALL I'M LOOKING FOR, STUDIES TO VERIFY IF THIS WILL BE A GOOD THING OR BAD THING. WHAT IS WRONG WITH THAT? KEVIN: TO FOLLOW UP, WHEN YOU ARE TALKING WITH THE FCC, TALKING ABOUT ISSUES LIKE CECIL, AND THE BACKGROUND OF TODAY, SO MANY DIZZYING HEADLINES ABOUT IMPEACHMENT. WITH REGARDS TO THE MEDIA CIRCUS THAT WILL HAPPEN ON THURSDAY AS THE HEARING AS THE ACTING DIRECTOR IS SET TO TESTIFY BEFORE THE HOUSE INTELLIGENCE COMMITTEE, WHAT WILL IMPEACHMENT PROCEEDINGS MEAN ON THE CECIL HEADLINES ABOUT IMPEACHMENT. WITH STUDY, ON PRESCRIPTION DRUG PRICING, ON SOME GUN REFORM? DOES ANY WORK IN WASHINGTON GET DONE? TRUTHFULLY. THE FOLKS WANT TO KNOW. THAT IS WHAT THE MEDIA WANTS TO KNOW. SCARLET: WE INTERRUPT BECAUSE THE FORMER VICE PRESIDENT JOE BIDEN IS NOW SPEAKING IN DELAWARE. LET'S LISTEN IN. > > I BELIEVE THE CORE VALUES OF THIS NATION, OUR VERY DEMOCRACY, WAS AT RISK. EVENTS IN RECENT DAYS HAVE MADE THAT EVEN. NOT ONLY TO ME -- EVEN CLEARER. NOT ONLY TO ME, BUT TO EVERYONE. WE HAVE A PRESIDENT WHO BELIEVES THERE IS NO LIMIT TO HIS POWER. HE BELIEVES HE CAN DO ANYTHING AND GET AWAY WITH IT. THE PRESIDENT BELIEVES HE IS ABOVE THE LAW. PURSUING THE LEADER OF ANOTHER NATION TO INVESTIGATE A POLITICAL OPPONENT IS NOT THE CONDUCT OF AN AMERICAN PRESIDENT. THE ALLEGATIONS THAT BLOCKED HUNDREDS OF MILLIONS OF DOLLARS, AND HE BLOCKED HUNDREDS OF MILLIONS OF DOLLARS IN AID TO ANOTHER COUNTRY IS AN ALLEGATION UNLESS HE AGREED TO SMEAR A POLITICAL OPPONENT IS NOT THE CONDUCT OF AN AMERICAN PRESIDENT. DENYING CONGRESS INFORMATION THAT IS CONSTITUTIONALLY ALLOWED TO IS NOT THE CONDUCT OF AN AMERICAN PRESIDENT. IT IS AN ABUSE OF POWER. IT UNDERMINES OUR NATIONAL SECURITY. IT VIOLATES HIS OATH OF OFFICE. AND IT STRIKES AT THE HEART OF THE SWORN RESPONSIBILITY OF THE PRESIDENT, A PRESIDENT HAS TO PUT NATIONAL INTEREST BEFORE PERSONAL INTEREST. I KNEW WHEN I DECIDED TO RUN THIS PRESIDENT WOULD ATTACK ME AND ANYONE ELSE WHO HE THOUGHT WOULD BE A THREAT TO HIS WINNING AGAIN. WELL, THAT IS WHAT HE DOES. THAT IS WHAT HE HAS ALWAYS DONE. EVEN THOUGH EVERY REVOCABLE PUBLICATION HAS LOOKED AT THE CHARGE -- REPUTABLE PUBLICATION HAS LOOKED AT THE CHART CHARGE MADE AGAINST ME TO BE UNTRUE AND WITHOUT MERIT, THAT WILL NOT STOP HIM. I CAN TAKE THE POLITICAL ATTACKS. THEY WILL COME AND THEY WILL GO. IN TIME, THEY WILL SOON BE FORGOTTEN. BUT IF WE ALLOW A PRESIDENT TO GET AWAY WITH SHREDDING THE UNITED STATES CONSTITUTION, THAT WILL LAST FOREVER. TOO MANY PEOPLE, TOO MANY GOOD DECENT PEOPLE HAVE TAKEN OATHS TO THIS NATION AND GIVEN THEIR LIVES OVER THE PAST 243 YEARS TO LET THAT HAPPEN. TOO MANY PEOPLE ARE SERVING THIS NATION RIGHT NOW AND HONORING THE OATH THEY HAVE TAKEN TO LET THAT HAPPEN. THIS IS NOT A DEMOCRATIC ISSUE OR A REPUBLICAN ISSUE. IT IS A NATIONAL ISSUE. IT IS A SECURITY ISSUE. IT IS TIME FOR THIS ADMINISTRATION TO STOP STONEWALLING AND PROVIDE CONGRESS WITH ALL THE FACTS IT NEEDS. INCLUDING A COPY OF THE FORMAL COMPLAINT MADE BY THE WHISTLEBLOWER. AND IT IS TIME FOR CONGRESS TO FULLY INVESTIGATE THE CONDUCT OF THIS PRESIDENT. THE PRESIDENT SHOULD STOP STONEWALLING THIS INVESTIGATION AND ALL OTHER INVESTIGATIONS INTO HIS ALLEGED WRONGDOING. USING HIS FULL CONSTITUTIONAL AUTHORITY, CONGRESS AND MY VIEW SHOULD DEMAND THE INFORMATION IT HAS A LEGAL RIGHT TO RECEIVE. IF THE PRESIDENT DOES NOT COMPLY WITH SUCH A REQUEST FROM THE CONGRESS, HE CONTINUES TO OBSTRUCT CONGRESS AND THWART THE LAW. DONALD TRUMP WILL LEAVE CONGRESS IN MY VIEW NO CHOICE BUT TO INITIATE IMPEACHMENT. THAT WOULD BE A TRAGEDY. A TRAGEDY OF HIS OWN MAKING. I HAVE ALWAYS BELIEVED AND STILL DO THAT AMERICA IS A TRULY SPECIAL AND UNIQUE NATION. BETTER THAN ANY OTHER NATION IN HISTORY. WE HAVE MADE THE EXPERIMENT OF SELF-GOVERNMENT WORK. WE HAVE ALWAYS BEEN A BEACON TO OTHER COUNTRIES AROUND THE WORLD. WE KNOW WHO DONALD TRUMP IS. IT IS TIME TO LET THE WORLD KNOW WHO WE ARE. THANK YOU VERY MUCH. > > [INDISCERNIBLE] CAROLINE: FROM DELAWARE, THE PREVIOUS VICE PRESIDENT JOE BIDEN, WHO IS TOTALLY NOW WANTING TO TAKE ON THE HIGHEST OFFICE IN THE UNITED STATES. REALLY, HE WAS SAYING IF TRUMP OBSTRUCTS CONGRESS, THEY MUST INITIATE IMPEACHMENT. IMPEACHMENT PROCEEDINGS SURROUNDING HIS OWN SON, WHO HAD BEEN ON THE BOARD OF THE UKRAINIAN BUSINESS. IT LOOKED AS THOUGH PRESIDENT TRUMP WAS ASKING FOR A QUID PRO QUO IN TERMS OF AN INVESTIGATION INTO BIDEN'S DOING. LET'S GET THE LATEST WITH KEVIN CIRILLI. WHAT DID YOU MAKE OF JOE BIDEN'S STATEMENT? KEVIN: THAT IS AS FAR AS JOE BIDEN HAS GONE IN TERMS OF CALLING FOR AN IMPEACHMENT. LET'S GO THROUGH THE NEXT 48 HOURS. LATER THIS EVENING, SPEAKER PELOSI IS SET TO HOLD SOME TYPE OF PUBLIC COMMENT AT 5:00 P.M. EASTERN TIME, WHERE SHE WILL REPORTEDLY CALL FOR IMPEACHMENT PROCEEDINGS TO BEGIN. TOMORROW, PRESIDENT TRUMP TWEETED OUT EARLIER THIS AFTERNOON THAT HE WILL BE RELEASING THE FULL TRANSCRIPT FROM THAT, FROM OVER THE SUMMER THAT HE HAD WITH THE UKRAINIAN PRESIDENT. DEMOCRATS IN RESPONSE TO THAT HAVE ALREADY SAID THEY WOULD LIKE FOR THE FULL WHISTLEBLOWER COMPLAINT TO BE RELEASED. WE ALSO ARE GETTING WORD REPORTEDLY THAT THE WHISTLEBLOWER HAS ASKED TO TESTIFY PUBLICLY BEFORE CONGRESS. THURSDAY, THERE IS A HEARING. BEFORE THURSDAY, PRESIDENT TRUMP IS SET TO BE QUICK -- SET TO MEET WITH UKRAINIAN PRESIDENT. AND THEN SENATOR ADAM SCHIFF OF CALIFORNIA, HE WILL BE ASKING QUESTIONS TO THE ACTING DIRECTOR OF NATIONAL INTELLIGENCE. OVER THE NEXT 48 HOURS, THERE IS GOING TO BE A BEVY OF NEWS SURROUNDING IMPEACHMENT. I WANT TO CAUTION THE GLOBAL AUDIENCE THAT IMPEACHMENT PROCEEDINGS DO NOT MEAN A REMOVAL FROM POWER. THE SPEAKER HAS BEEN MEETING PRIVATELY WITH THE CHAIRS OF SIX COMMITTEES THAT ARE CHAIRED BY DEMOCRATS. THERE APPEARS TO BE NO CONSENSUS IN THE REPUBLICAN-CONTROLLED SENATE THAT THEY WOULD BE VOTING TO EVICT AND IMPEACHMENT. THERE ARE MODERATE DEMOCRATS IN SUBURBAN DISTRICTS THAT HAVE SAID IMPEACHMENT PROCEEDINGS OUGHT TO BEGIN AS A RESULT OF THE UKRAINE DEVELOPMENTS. THAT SAID, I HAVE NOT BEEN ABLE TO FIND ANY REPUBLICANS YET WHO HAVE BEEN ON BOARD WITH WHAT THE DEMOCRATS ARE DOING. SCARLET: KEVIN CIRILLI, THE CHIEF WASHINGTON CORRESPONDENT. SPEAKING OF THE SENATE SENATE MAJORITY LEADER MITCH MCCONNELL, EARLIER IN THE PROGRAM HAD SAID THAT HE DID NOT WANT TO ADDRESS A HYPOTHETICAL ON IMPEACHMENT. HE DID NOT RECEIVE AN EXPLANATION ON THE DELAY IN THE UKRAINE AID AS WELL. NOT MAKING ANY COMMENTS. NOT REALLY COMMENTING ON WHAT COMES NEXT WHEN IT COMES TO THIS ONGOING STORY. KEVIN CIRILLI, MUCH APPRECIATED. IN THE MEANTIME, LET'S GO TO MARK CRUMPTON FOR OTHER HEADLINES. MARK: HOUSE LAWMAKERS ARE REPORTEDLY READY TO BEGIN IMPEACHMENT PROCEEDINGS AGAINST PRESIDENT TRUMP. MULTIPLE REPORTS SAY HOUSE SPEAKER NANCY PELOSI IS EXPECTED TO ANNOUNCE HER SUPPORT TODAY FOR A FORMAL IMPEACHMENT INQUIRY AGAINST THE PRESIDENT. PELOSI SPOKE IN WASHINGTON, D.C., AT THE ATLANTIC FESTIVAL. > > WE HAVE TO HAVE THE FACTS. AS SOON AS WE HAVE THE FACTS, WE ARE READY. NOW WE HAVE THE FACTS. WE ARE READY FOR LATER TODAY. MARK: AS KEVIN CIRILLI TOLD US MOMENTS AGO, SPEAKER PELOSI IS EXPECTED TO MAKE A STATEMENT AT 5:00 P.M. WASHINGTON TIME TODAY. AS YOU SAW ON BLOOMBERG TELEVISION MOMENTS AGO, JOE BIDEN ALSO SAID THAT HE WILL BACK IMPEACHMENT EFFORTS IF PRESIDENT TRUMP DOES NOT COOPERATE WITH CONGRESSIONAL REQUESTS FOR DOCUMENTS PERTAINING TO HIS PHONE CALL WITH UKRAINE'S PRESIDENT. PRESIDENT TRUMP SAID HE WILL RELEASE THE TRANSCRIPT OF THE CALL TOMORROW. BORIS JOHNSON IS VOWING TO FORCE U.K. OUT OF THE EUROPEAN UNION WITH OR WITHOUT A DEAL ON BREXIT NEXT MONTH. JOHNSON SAYS HE STRONGLY DISAGREES WITH THE U.K. SUPREME COURT RULING TODAY DECLARING HIS SUSPENSION OF PARLIAMENT ILLEGAL. THE PRIME MINISTER IS FACING GROWING CALLS TO RESIGN. TURKISH PRESIDENT ERDOGAN HIGHLIGHTED THE HARM UNITARIAN -- THE HUMANITARIAN COST OF SERIOUS CIVIL WAR -- THE HUMANITARIAN COST OF SYRIA'S CIVIL WAR. HE ALSO SPOKE ABOUT THE KILLING OF JAMAL KHASHOGGI IN ISTANBUL LAST YEAR. PUBLIC HEALTH OFFICIALS SAY THE NUMBER OF VAPING RELATED ILLNESSES IN THE U.S. COULD SOON CLIMB MUCH HIGHER. THE CDC SAYS HUNDREDS MORE CASES HAVE BEEN REPORTED SINCE LAST WEEK. AT LEAST NINE DEATHS HAVE BEEN REPORTED. GLOBAL NEWS 24 HOURS A DAY ON AIR AND AT TICTOC ON TWITTER POWERED BY MORE THAN 2700 JOURNALISTS AND ANALYSTS IN OVER 120 COUNTRIES. I'M MARK CRUMPTON. THIS IS BLOOMBERG. CAROLINE: NOW LET'S GET AN UPDATE ON WHAT IS HAPPENING IN TERMS OF THE MARKET BECAUSE IT HAS BEEN A DOWN DAY. NOT ONLY DID WE HAVE CRITICAL WORDS FOR CHINA COMING FROM THE U.S. PRESIDENT AT THE U.N., BUT ALSO THIS ONGOING BUILDUP OF MOMENTUM AS TO WHETHER WE MIGHT OR NOT SEE IMPEACHMENT PROCEEDINGS COMING FROM THE HOUSE IN THE UNITED STATES AND WHAT THAT MEANS FOR THE PRESIDENT. THE S & P 500, THE BIGGEST MOVE OF THE MONTH. SCARLET: LET'S NOT FORGET THERE IS DATA. CONSUMER CONFIDENCE DATA IN THE U.S. WAS SOFT. BUSINESS CONFIDENCE OUT OF GERMANY WAS NOT GREAT EITHER. THE ECONOMIC FUNDAMENTALS DO NOT LOOK FANTASTIC PARTICULARLY IF YOU ARE LOOKING AT THE WORLD OUTSIDE OF THE UNITED STATES FOR THAT REASON, THERE IS MOVEMENT TO SAFER HAVENS. WHETHER IT IS TREASURIES WHEN HE JAPANESE YEN. CAROLINE: WE'LL GET TO BUY THE CONCERNS THAT -- OIL GETS HIT BY THESE CONCERNS AND SAUDI ARABIA GETTING BACK. SCARLET: ENERGY STOCKS ARE AMONG THE WORST PERFORMERS IN THE BIG CAP SPACE AND SMALL-CAP SPACE. XLE IS UP BY 120%. THE NASDAQ IS BELOW ITS AVERAGE. BECK STOCKS IN PARTICULAR GETTING IT BECAUSE PRESIDENT TRUMP MADE COMMENTS ABOUT HOW SOCIAL MEDIA PLATFORMS HAVE ACQUIRED IMMENSE POWER. CAROLINE: REVELATORY -- REGULATORY CONCERNS. SCARLET: THE TOWN GETTING A LIFT UP BY HALF OF 1%, APPROACHING $1.25. THE SUPREME COURT RULING THAT BORIS JOHNSON'S SUSPENSION OF PARLIAMENT WAS UNLAWFUL. MAYBE THIS DRAGS ON BREXIT A LITTLE FURTHER OR WE GET A NO DEAL BREXIT AS EARLY AS OCTOBER 31. CAROLINE: THE SAGA CONTINUES. SCARLET: LET'S MOVE ON TO THE TOP CALLS. FIRST UP, FEDERAL RESEARCH LOWERING ITS PRICE TARGET ON NETFLIX TO $350 FROM $515. THE ANALYST CITES THE RISING COSTS. NETFLIX OFF FOR A FIFTH STRAIGHT DAY, NOW LOSING 5%. RBC CAPITAL RAISING THE PRICE TARGET ON ALPHABET TO $1500 FROM $1425. THE ANALYST CITES THE POTENTIAL OF THE GOOGLE MAPS PRODUCT. THE SHARE DOWN IS 1.5 -- THE SHARE IS DOWN 1.5%. AN ANALYST CITES THE UNDERAPPRECIATED FUNDAMENTALS AND STRAIGHTENING USER TREND, BUT DESPITE THE UPDATE, SHARES ARE MOVING LOWER. THERE IS A THEME AMONG THE BIG CAP TECHNIQUES. CAROLINE:CAROLINE: LET'S TURN OUR ATTENTION BACK TO POLITICS BECAUSE SCANDALS STOLE THE SPOTLIGHT FROM THE UNITED NATIONS. PRESIDENT TRUMP IS FACING RENEWED CALLS FOR IMPEACHMENT AFTER ALLEGATIONS SURFACED THAT HE MAY HAVE MADE DEMANDS OF UKRAINE. THEY ARE TOGETHER AT THE UNITED NATIONS GENERAL ASSEMBLY RIGHT HERE IN NEW YORK. PRESIDENT TRUMP HAS AGREED TO RELEASE THE TRANSCRIPT TO THE NOW INFAMOUS JULY PHONE CALL. UKRAINE HAS YET TO COMMENT. FOR MORE ON ALL OF THIS, LET'S WELCOME IN BILL FERRY. NEVER HAVE I SEEN THE PRESIDENT OF THE UKRAINE HAVE THEIR NAME ACROSS U.S. MEDIA. TALK TO US ABOUT HOW THIS THING HAS BEEN SNOWBALLING TO A CERTAIN EXTENT. THE PHONE CALL WAS MADE IN JULY. BILL: RIGHT, BUT EVEN A WEEK AGO, MOST OF US WERE NOT READING ABOUT UKRAINE IN THE PAPERS OR HEAR. IT IS THE STORY OF THE WEEK REALLY SO FAR. CLASSIC TIMING FROM THIS ADMINISTRATION. THE PRESIDENT IS GOING TO MEET WITH UKRAINE'S LEADER TOMORROW SUMMER ON THE SIDELINES OF THE UNITED NATIONS. THE UKRAINE'S PRESIDENT EXPECTS -- IF THERE ARE QUESTIONS, IT WILL CENTER AROUND THE PHONE CALL FROM A MONTH OR TWO AGO AND EXACTLY WHAT WAS SAID ABOUT CORRUPTION IN UKRAINE AND JOE BIDEN AND HIS SON. SCARLET: THE PRESIDENT OF THE UNITED STATES HAS SAID HE IS GOING TO RELEASE THE FULL UKRAINE CALL TRANSCRIPT TOMORROW SO WE WILL GET MORE DETAILS ON THAT, BUT HAS THE WHITE HOUSE EXPLANATION FOR WHY THEY DELAYED CHANGED OR EVOLVED OVER THE LAST COUPLE WEEKS? I REMEMBER AT ONE POINT THERE WERE CONCERNS ABOUT CORRUPTION IN UKRAINE, AND NOW YOU ARE HEARING IT IS ABOUT WANTING EUROPE, THE REST OF EUROPE. BILL: THE LATEST EXPLANATION WE HEARD IS THE PRESIDENT ORDERED A HALT OF $400 MILLION OF AID BECAUSE HE WANTED TO SEE OTHER NATIONS IN EUROPE STEPPED UP TO FIGHT RUSSIAN BACKED REBELS. EARLIER, IT WAS AN ISSUE OF CORRUPTION. WE ARE STILL TRY TO FIGURE OUT EXACTLY WHERE THE WHITE HOUSE IS GOING TO LAND ON THIS. THE TRANSCRIPT SHOULD CLEAR SOME OF THAT UP. BUT THE BROADER QUESTION IS REGARDLESS WHETHER THERE WAS GOOD PROGRAM AT ALL. THE PRESIDENT OF THE UNITED STATES ASKING YOU FOR LEADER TO CHASE AN INVESTIGATION ON A CHEAP POLITICAL OPPONENT'S REASON OR GROUNDS ENOUGH FOR IMPEACHMENT AT THIS POINT. THAT IS WHAT IT SEEMS LIKE NANCY PELOSI IS REACHING FOR AT THIS POINT. CAROLINE: SLIGHTLY LESS LIKELY GIVEN THE NUMBERS IN THE SENATE OF DEMOCRATS VERSUS REPUBLICANS. DO YOU THINK THIS WILL ENGULF THE 2020 ELECTION THE SAME WAY RUSSIA DID IN 2016? BILL: YOU COULD HAVE IMPEACHMENT HEARINGS GO TO THE SENATE AND BE DISPATCHED QUICKLY. WE HAVE NOT SEEN REPUBLICANS RALLYING. THE DIFFERENCE BETWEEN THIS AND ROBERT MUELLER'S PROBE IS THERE IS A LOT OF DEMOCRATS SAYING THIS IS A PROBLEM, A BIGGER ISSUE THAN ANYTHING WE THOUGHT BEFORE CELESTE GO FORWARD. NANCY PELOSI BEFORE HAD A MINORITY OF DEMOCRATS PRESSURING HER FOR IMPEACHMENT. NOW SHE HAS PROBABLY AN OVERWHELMING MAJORITY. THAT IS GOING TO PUSH THIS FORWARD. IT STILL LIKELY ENDS IN THE SENATE. PERHAPS THAT IS SOMETHING THAT TAKES PLACE. I HESITATE TO JUMP ON THE TIME HORIZON, BUT PROBABLY WELL BEFORE WE GET TO THE MIDDLE OF PRIMARY SEASON NEXT YEAR. SCARLET: KEVIN WAS SPEAKING EARLIER WITH A CONGRESSMAN FROM MISSOURI, A REPUBLICAN. HE IS NOT IN SUPPORT OF ANY IMPEACHMENT PROCEEDINGS. HAVE REPUBLICANS SPOKEN PUBLICLY ABOUT THIS IN A WAY THAT GIVES US ANY IDEA HOW THE CAUCUS IS THINKING ABOUT THE DEVELOPMENTS? BILL: WE HAVEN'T REPUBLICANS COME OUT AND SAY, LISTEN, IF THE PRESIDENT THOUGHT THERE WAS A CRIME BEING COMMITTED AND UKRAINE WOULD HAVE SOME KNOWLEDGE, IT IS REASONABLE FOR THE PRESIDENT TO ASK THEM TO DO THAT. THERE WAS A PROBE AT ONE POINT. UKRAINE SAID THERE WAS NO EVIDENCE THAT JOE BIDEN'S SON DID ANYTHING WRONG AND THE CASE WAS CLOSED. THE PRESIDENT IS TRYING TO STIR UP AN ISSUE THAT SEEMS TO HAVE BEEN ADDRESSED PREVIOUSLY. THERE IS NO DOUBT THERE HAPPEN ISSUES OR QUESTIONS ABOUT CORRUPTION GOING BACK TO THE OBAMA ADMINISTRATION WITH UKRAINE. CAROLINE: MEANWHILE, WE CONTINUE TO HAVE OTHER GEOPOLITICAL HEADLINES BREAK. TRUMP SAYS IRAN WANTS TO NEGOTIATE. AT THE MOMENT, HE SAYS CALLS FOR IMPEACHMENT ARE PART OF A WITCHHUNT. SCARLET: A FAMILIAR TALKING POINT FOR THE PRESIDENT. BILL, THANK YOU SO MUCH. BILL IS HEAD OF OUR NATIONAL SECURITY COVERAGE. COMING UP, WEWORK REWORK. THE CEO STEPPING DOWN. A MOVE DESIGNED TO SALVAGE WHAT COULD HAPPEN A, I DON'T WANT TO SAY DISASTROUS, BUT VERY DISAPPOINTING IPO. WHAT HAPPENS TO THIS IPO? WE WILL DISCUSS. SCARLET: AN IPO ON THE LINE. WEWORK'S CEO STEPPING DOWN. TWO HAVE NOW BEEN APPOINTED AS CO-CEOS. FOR MORE, LET'S TURN TO CRYSTAL. IS THIS ENOUGH TO KEEP THE IPO ON TRACK BEFORE THE END OF THE YEAR? CRYSTAL: THIS IS A CHANGE THAT INVESTORS HAVE BEEN ASKING FOR, THAT NEWMAN NEEDS TO LEAVE THE COMPANY, WHICH IS WHAT THEY ARE GETTING RIGHT NOW. NEUMANN IS NO LONGER THE CEO. HE WILL RETAIN A ROLE AS A DIRECTOR IN THE COMPANY BUT WILL NOT BE INVOLVED IN THE DAY-TO-DAY. THE TWO SENIOR EXECUTIVES WERE MADE CO-CEO. THEY ALREADY KNOW THE COMPANY AND HOW IT IS WORKING. TECHNICALLY, THEY CAN GO AHEAD WITH THE IPO IF THEY WANT. THIS IS WHAT THEY WANT. REMEMBER, THEY HAVE TO FINISH THE DEAL IN 2019. PEOPLE FAMILIAR WITH THE SITUATION TOLD US THAT WILL LIKELY HAPPEN IN OCTOBER. CAROLINE: QUITE AMAZING THEY ARE SLASHING AND TAKING AWAY SEEMINGLY THE ROLES FROM HIS WIFE, REBECCA. SHE IS NO LONGER DEEMED CO-FOUNDER. SHE HAS GIVEN AWAY HER TITLE. IT IS A PAINFUL SITUATION FOR THE CEO BUT NO MORE PAINFUL THAN THE FACT THAT THEY NEED $9 BILLION. AS YOU SAID, THIS IS PREDICATED ON THE FACT THAT THEY NEED A SUCCESSFUL IPO BY THE END OF THE YEAR. WHAT HAPPENS IF THEY DON'T? WHAT DOES IT DO? CRYSTAL: THEY HAVE BEEN IN TALKS WITH A BANK ON POTENTIALLY GETTING ANOTHER ROUND OF PRIVATE INVESTMENTS, BUT THAT WOULD NOT BE $9 BILLION FOR SURE. WHAT WE SHOULD ANTICIPATE IS THESE PEOPLE SHOULD TRY TO GET THE IPO GOING AS PLANNED BUT WHETHER THE PUBLIC MARKET IS RECEPTIVE OF IT AT THIS POINT AFTER THE NEW MANAGEMENT JUST COMES IN PLACE IS A BIG QUESTION. WE SHOULD SEE SOME ACTION. THERE SHOULD BE SOME MORE NEWS AND ANNOUNCEMENTS COMING. WE SHOULD SEE ACTION BEFORE THE YEAR-END. SCARLET: A LOT OF PROSPECTIVE INVESTORS WERE UNSURE. DO THEY LIKE THE BUSINESS MODEL OVERALL? ARE THEY CULPABLE WITH HOW THE BUSINESS IS SET UP? -- ARE THEY COMFORTABLE WITH HOW THE BUSINESS IS SET UP? CRYSTAL: WHAT HAS COME UP IS PROFITABILITY. RIGHT NOW, IT IS UNPROFITABLE. APART FROM CHANGE IN MANAGEMENT, THEY ALSO HAVE TO WORK ON HOW THEY WOULD IMPROVE THE MODEL OF THE BUSINESS. RIGHT NOW WITH THE NEW MANAGEMENT IN THIS ANNOUNCEMENT, WE HAVE NOT SEEN ANYTHING MENTIONED YET. IF THEY ARE DELAYING THE IPO A LITTLE BIT UNTIL THE END OF THE YEAR, THEY SHOULD HAVE SOME TIME TO WORK ON THEIR BUSINESS AS WELL. CAROLINE: WHAT AN AMAZING UNFOLDING STORY. THANK YOU FOR YOUR PERSPECTIVE. NOW LET'S HAVE A QUICK LOOK AT HOW THE REST OF THE MARKETS ARE PERFORMING. THE PUBLIC TECH MARKETS ARE FALLING. CONCERNS ABOUT REVELATORY RISK KILLING SOME OF THE SOCIAL MEDIA COMPANIES AND TRUMP IN THE U.N. SAYING THEY HAVE IMMENSE POWER. WE HAVE SOME DENTED HOPES ON TRADE BETWEEN THE U.S. AND CHINA. THE U.S. DOLLAR LOWER AS WELL. SCARLET: YES. GOLD AND THE TREASURIES CATCHING A BID. GOLD UP BY 0.75%. HAVENS GETTING HIGHER. ♪ CAROLINE: THIS IS "COUNTDOWN TO THE CLOSE." I'M CAROLINE HYDE. SCARLET: I'M SCARLET FU. JOINING US AS ALWAYS AT THIS HOUR IS JOE WEISENTHAL. STOCKS DOWN BY ALMOST 1%. WHAT I DO NOT LOOKING AT? JOE: THAT IS EXACTLY THE WAY I WAS JUST THINKING ABOUT IT. THERE IS SO MUCH TO WATCH TODAY. I THOUGHT MAYBE THE MOST INTERESTING THING OF THE DAY WOULD BE THE SUPREME COURT RULING IN THE U.K. BUT IT TURNED OUT THAT WAS ALL KIND OF CRAZY STUFF THAT HAPPENED. AFTER THAT, THE ECONOMIC DATA. PRETTY DISMAL. NOT DISMAL, BUT NOT GOOD. NOT WHAT YOU WANT TO SAY, PARTICULARLY THE CONFIDENCE NUMBERS. SOME OTHER NUMBERS NOT SO GREAT. OBVIOUSLY, THE DRUMBEAT TO IMPEACHMENT. I THINK TODAY WAS THE FIRST TIME THAT YOU COULD CLEARLY SEE SOME POLITICAL IMPEACHMENT RISK VISIBLE IN THE MARKETS. TRUMP TWEETED, FOR EXAMPLE, HE WAS GOING TO RELEASE THE DOCUMENTS. THAT SEEMED TO BE A PRESSURE VALVE. WE SAW STACKS AND THE NEWS. -- STOCKS AND THE NEWS. IT FEELS LIKE MOMENTUM IS BUILDING TO THAT. THAT CAUSED FURTHER WEAKNESS. IT IS STRIKING. WE TALKED A BUNCH ON THIS SHOW ABOUT WHY DOESN'T POLITICAL RISK SHOW UP MORE IN THE MARKETS? MAYBE IT SHOWS UP IN CORNERS OF THE MARKET. TODAY IS NOT EXTREME. WE ARE DOWN NOT EVEN OVER 1%. NOT MY SELLOFF PER SE BUT IT IS THE FIRST TIME I CAN REMEMBER WHERE PEOPLE WORK CLEARLY THINKING OF THESE HEADLINES AND THINKING ABOUT IMPEACHMENT AND WHAT THAT COULD MEAN OVER THE NEXT SEVERAL MONTHS WHEN THINKING ABOUT INDEX LEVELS. CAROLINE: WHAT ARE THE RAMIFICATIONS FOR THE U.S. AND CHINA TRADE TALKS? TO A CERTAIN EXTENT, ONE PRESSURE BUILDS AT HOME, WE TAKE OFF THE PRESSURE FROM AN INTERNATIONAL PERSPECTIVE. TODAY, GUNS A BLAZING WHEN IT CAME TO CHINA AND TECH COMPANIES. JOE: ALMOST LIKE HE MADE A LOT OF NEWS, MORE THAN HE EXPECTED IN THE U.N. SPEECH,. REALLY HAMMERING CHINA ABOUT SOME OF THE IP THEFT. YOU SAW THE MARKETS MOVE ON THAT HEADLINE. WE STARTED THE DAY IN THE GREEN SOLIDLY. IT WAS ACTUALLY THAT SPEECH THAT SORT OF SET THE TONE FOR THE SELLOFF WE SAW THROUGHOUT THE REST OF THE DAY. SCARLET: THAT IS PART OF HIS MO. HE WILL BE HAWKISH IN A PUBLIC SPEECH AND HOLD A ONE-ON-ONE CONVERSATION OF SOME SORT AND ALL OF A SUDDEN THINGS WILL BE GREAT AGAIN. JOE: WE WILL SEE WHAT HAPPENS NEXT WEEK. THERE ARE SUPPOSED TO BE FACE-TO-FACE TALKS NEXT WEEK, SO WHO KNOWS. SCARLET: IN THE MEANTIME, IF YOU WANT A PICTURE OF WHAT ANXIETY LOOKS LIKE IN THE MARKETS, THIS IS WHAT HAPPENS. YOU HAVE 4 SECTORS IN THE GREEN. THEY ARE THE ONES YOU WOULD EXPECT. FOOD THEM ABOVE HIS COME AT TOBACCO LITTLE CHANGED. UTILITIES UP BY 1%. SAFE HAVENS, DIVIDEND PAYING STOCKS CATCHING A BIT. CAROLINE: U.S. TREASURIES HAVE BEEN ALL DAY AS WELL. SCARLET: YES. THE 10 YEAR SEEING THE DECLINE IN YIELD. ON THE DOWNSIDE, MEDIA ENTERTAINMENT IS NETFLIX DOWN FOR A FIFTH STRAIGHT DAY. LOTS OF QUESTIONS NOW ABOUT JUST HOW RELIANT IT IS ON INTERNATIONAL GROWTH AND WHAT THE PROSPECTS LOOK LIKE. CHIPMAKERS UNDER PRESSURE. ENERGY FALLING ALONG WITH OIL PRICES. WHEN YOU LOOK AT THE INDEXES -- CAROLINE: THERE WE HAVE WHAT JOE WAS TALKING ABOUT. THE KEYING OFF OF NOT REDACTED STATEMENT BEING PUT OUT BY PRESIDENT TRUMP AND THEN PELOSI STILL SEEKING IMPEACHMENT KNOCKED US DOWN TO THE LOWER COURSE. SCARLET: WE ARE PRETTY MUCH WHERE WE HAVE WOULD HAVE BEEN OTHERWISE. WE ARE SIX MINUTES AWAY FROM THE CLOSED SO LET'S TAKE A LOOK AT THE STORIES BENEATH THE NUMBERS. TAYLOR, WHAT ARE YOU WATCHING? TAYLOR: IT IS ALL ABOUT THE BANKS AND BIG TEX. THE SELLOFF. THE INDEX IS AWFULLY .5%. NETFLIX, AMAZON, APPLE, GOOGLE, ALL OF THESE COMPANIES, ANYWHERE YOU CAN SEE, 3%, 4.5%. IT STARTED THIS MORNING WITH TRUMP'S U.N. SPEECH WHEN HE WAS TALKING ABOUT THE GROWING POWER AND SOME OF THE ANTITRUST REGULATIONS THAT MAY BE UNDERWAY. SOME INVESTIGATIONS THAT CONTINUE TO BE ONGOING. THE NASDAQ INDEX, YOU KNOW THIS CHART. WE COME AND TAKE A LOOK INSIDE MY BLOOMBERG TERMINAL. IT IS ALL ABOUT THE NASDAQ. IT IS NOW BELOW THE PINK 50 DAY MOVING AVERAGE. HOLDING ON RIGHT THERE IN BLUE, THE 100 DAY MOVING AVERAGE. PROVIDING A BIT OF A SUPPORT LEVEL. WE HAVE TO SEE IN ABOUT SIX MINUTES OR SO HOW THAT CLOSES. YOU WANT TO MAKE SURE AT LEAST THAT HOLDS A LITTLE BIT FOR A SUPPORT LINE. ABIGAIL: I'M TAKING A LOOK AT EXACTLY WHAT I WAS LOOKING AT THIS HOUR YESTERDAY, AND THAT IS BITCOIN. DOWN YESTERDAY BUT REALLY DOWN TODAY, PLUNGING OVER THE LAST HOUR. RIGHT NOW DOWN 14.6%. ITS WORST DAY SINCE EARLY JULY. IT IS NOT CLEAR WHAT IS BEHIND THIS SELLING. OFTEN IN THE CASE OF CRYPTOCURRENCIES, NOT A LOT FUNDAMENTALS BUT A PERFECT TIME FOR CHARTS. LET'S TAKE A LOOK AT THE CHART WE HAVE BEEN LOOKING AT YESTERDAY AND FOR A MONTH. THIS IS BITCOIN EARLIER ON THE YEAR STEADILY CLIMBING AND THEN INTO THELAUNCH OF FACEBOOK'S CRYPTOCURRENCY, UP -- INTO THE LAUNCH OF FACEBOOK'S CRYPTOCURRENCY, UP 250%. WE HAVE BEEN SAYING FOR MONTHS, IF IT GETS BELOW 9000, BITCOIN WOULD BE OFFICIALLY CONFIRMED TO GO BELOW 7000. YOU CAN MAKE THE CASE BITCOIN IS CONFIRMED TO GO BELOW 5000. EITHER WAY YOU LOOK AT IT, WITH THE FALLING RSI, THE CHART OF BITCOIN IS BEARISH. EXPECT MORE DECLINES AHEAD. LUKE: I'M LOOKING AT SOMETHING THAT JOE TOUCHED ON, CONSUMER CONFIDENCE. WE SAW THE MARKET TALK ABOUT A COUPLE MINUTES. ALMOST A FUNDAMENTAL CAUSE FOR SOME OF THE WOES WE SAW ACCELERATED IN THE DAY. THERE IS A SILVER LINING TO THIS REPORT, AND THAT IS SOMETHING FLAGGED BY THE U.S. HEAD OF ECONOMICS AND RENAISSANCE MACRO NEIL DONNA. NOBODY IS BULLISH. THERE IS NO WE TELL EUPHORIA AND THAT IS GOOD NEWS BECAUSE CONSUMER CONFIDENCE CONTINUES TO BE A CONTRIBUTING INDICATOR. THE SHARE AMERICAN SURVEY SHOWING INCREASE OR DECREASE. BELOW ZERO IS EXPECTING A NET DECLINE IN STOCKS IN THE YEAR AHEAD. YOU CAN SEE A LOT OF THESE TIMES WHEN THE BARS ARE NEGATIVE, IT IS A GREAT TIME TO BUY STOCKS. MOST RECENTLY IN JANUARY THIS YEAR. I WILL CAUTION THAT NEIL ALSO HIGHLIGHTED SOME NEGATIVE NEWS FROM THE CONSUMER OUTLOOK. CONSUMERS LOOKING FOR JOB GROWTH TO SLOW AND THAT TENDS TO BE A LEADING INDICATOR OF WHAT HAPPENS TO LABOR MARKETS. ALSO WITH REGARDS TO THIS DATA, IS APPOINTED TO KNOW THAT IT NOVEMBER 2007 WHEN THIS TURNED NEGATIVE, IT CERTAINLY WAS NOT A CONTRIBUTING INDICATOR. CAROLINE: REALLY INTERESTING TAKE. LET'S GET MORE MARKET ANALYSIS. JOINED BY SARAH PONCZEK NOW FROM BLOOMBERG. SARAH, WHICH HEADLINE DID YOU FOCUS ON THE MOST? WHICH HEADLINE DID THE INVESTORS YOU SPOKE TO? SARAH: YOU CANNOT HELP BUT KEEP AN EYE ON THE IMPEACHMENT HEADLINES BECAUSE EVERY SINGLE TIME WE DID SEE A HEADLINE CROSS, WE SAW BETTING MARKET BONDS JUMP ON IMPEACHMENT, THE S & P 500 AND OTHER BENCHMARKS TAKE THEIR CUE AS WELL. IT WAS AROUND NOON WE HEARD BIDEN AND PELOSI WILL BACK THE PROCEEDINGS. YOU IMMEDIATELY SAW THE MARKET PULLBACK. BUT THEN TRUMP SAID HE WOULD IMMEDIATELY RELEASE THE TRANSCRIPTS OF THE CALL, YOU SAW AT POP UP ONCE AGAIN. JOE: WAS TODAY SOME OF THE MOST KEEN IN YOU HAVE SEEN PEOPLE WATCHING D.C. NEWS IN A WHILE? SARAH: YES, ABSOLUTELY. WE HAVE BEEN PAYING ATTENTION TO HEADLINES WHEN IT COMES TO TRADE, BUT IT FEELS PEOPLE HAVE ALMOST GROWN NUMB TO THE HEADLINES IN A SENSE BECAUSE THEY CHANGE FROM DAY TO DAY. WHEN YOU THINK BACK TO THE TIMES WE WERE TALKING ABOUT IMPEACHMENT, THE ROBERT MUELLER PROBE, WE WOULD GET HEADLINES AND MARKETS WOULD NOT BUDGE. THEY WERE SO SURE THIS WOULD NOT ACTUALLY LEAD TO SOMETHING. THIS TIME AROUND, INVESTORS IN BETTING MARKETS ARE SHOWING THAT IF THE DEMOCRATS OF THE HOUSE ARE ACTUALLY GOING TO MOVE FORWARD WITH A FORMAL IMPEACHMENT INQUIRY, THAT DOES ACTUALLY MEAN SOMETHING A BIT MORE REAL. SCARLET: WITH ABOUT A MINUTE AND A HAVE TO GO BEFORE THE CLOSE, LET'S BRING IN THE CHIEF EQUITY DERIVATIVE STRATEGIST. WHAT IS YOUR READ ON THE POLITICAL VOICE AND IF IT IS HAVING AN IMPACT ON SENTIMENT? > > SURE. I WOULD AGREE THAT TODAY FOR SURE IMPEACHMENT NEWS TOOK THE BULK OF INVESTOR ATTENTION. WHAT SOME OF THE RISK TO THE SUSTAINED GOALS GOING FORWARD HAD AN IMPACT ON THE MARKET. WE NEED TO SEE REPUBLICAN SENATORS COME OUT IN FAVOR FOR A CHANCE OF A SUCCESSFUL IMPEACHMENT INQUIRY. YOU NEED TO SEE THAT BEFORE IT IS PRESSED INTO THE MARKET. RIGHT NOW, INTRADAY SWINGS, A JUMP IN THE VIX. BUT LONGER TERM DATA NOT MOVING. JOE: A COUPLE WEEKS AGO WHEN WE GOT THE SORT OF SHARP FACTOR ROTATION AND THE VALUE STOCKS TOOK OFF IN THE GROWTH STOCKS SURGED, SOME OF THAT HAS FADED BUT THE CONSISTENT THING IS TECH IS GETTING CLOBBERED ONCE AGAIN HERE WITH THE NASDAQ LEADING THE WAY DOWN. IS THAT A NEW NORMAL? CAN WE NOT RELY ON TECH AS MUCH AS WE USED TO? MANDY: I THINK TECH IS IN THE CROSSHAIRS OF A LOT OF THE POLITICAL NOISE. WE HAVE BEEN GETTING A LOT OF INCOMING INQUIRIES FROM INVESTORS WHAT IS BEING PRICED INTO THE 2020 ELECTION, ESPECIALLY WITH THE RISE OF WARREN. YOU LOOK AT THE SECTOR LEVEL, IT IS NOT HEALTH CARE.IS NOT FINANCIALS. IT IS TECH WHERE WE SEE THE ELEVATED RISK BETWEEN THE SECTORS VERSUS THE INDEX. CERTAINLY I THINK THAT IS A DRIVER FOR THE FACTOR. CAROLINE: NASDAQ OFF BY 1.5% TODAY AS WE SEE IN THE LINE OF FIRE FROM A REGULATORY PERSPECTIVE ONCE AGAIN THE BIG SOCIAL MEDIA NAMES. -- CHIPMAKERS IN THE LINE OF FIRE. SCARLET: THE INDEX OFF ABOUT 3.25%, THE MOST SINCE LATE AUGUST. NONETHELESS, IT FEELS DIFFERENT THIS TIME BECAUSE THERE IS SOMETHING MORE TO IT. IT IS A CASE OF THE PILE ON, THE NEGATIVE HEADLINES. JOE: A COMPANY LIKE SHOPPER FIGHT GETTING DESTROYED OVER THE LAST FEW WEEKS, I DON'T THINK THEY ARE IN THE LINEUP REGULATORY ACTION. NONETHELESS, THEY WERE SO HOT AND ARE GETTING CREAMED. CAROLINE: ABIGAIL, WHAT ARE YOU WATCHING AT THE CLOSE? ABIGAIL: THE TECHNICALS ON THE TECH HEAVY NASDAQ. THIS IS A ROUGHLY 1.5 YEAR CHART. THE RANGE, THE COMPLETE RANGE. WE HAD THE LAST BIT OF THE RALLY, THE FOURTH QUARTER VOLATILITY. THE FACT THAT THE NASDAQ TRIED TO TOUCH DOWN ONTO ITS 100 DAY MOVING AVERAGE IN YELLOW. YOU CAN SEE THAT HAS HAPPENED BEFORE. THE LAST TIME THAT HAPPENED, THE TIME BEFORE THAT. THE BIGGEST POINT, ALL-TIME HIGHS, BUYERS ARE NOT VERY ENTHUSIASTIC. IT MIGHT SUGGEST WE WILL BE SIDEWAYS FOR A BIT LONGER WITH STOCKS. TAYLOR: THE RISK OFF SENTIMENT, YOU SEE THAT SHOWING UP INTO BUYING BONDS. THE 10 YEAR YIELD IS DOWN ABOUT NINE BASIS POINTS. WE ARE WAITING OF COURSE FOR THAT PRESS CONFERENCE FROM NANCY PELOSI WITH A FORMAL INQUIRY INTO THE IMPEACHMENT OF TRUMP. THIS IS THE ONE-DAY MOVE ON THE THREE-MONTH MONTH 10 YEAR, DOWN NOW 12 BASIS POINTS. WE ARE INVERTED BY 28 BASIS POINTS. WE HAVE JUMPED BY ALMOST DOUBLE HERE TODAY ALONE. WE DO KNOW THAT AFTER INVERSION, TYPICALLY YOU GET A QUICK RE-STEEPENING, THEN A RECESSION HITS. WE ARE NOT THERE YET BUT THE NEGATIVE BASIS POINTS CERTAINLY CATCHES MY ATTENTION. RENITA: I AM LOOKING AT THE LARGEST ETF TRACKING THE PRICE OF GOLD. IF WE LOOK AT A CHART TRACKING THE FLOWS, INVESTORS ADDED ABOUT A BILLION DOLLARS LAST WEEK AND THIS WEEK, THEY HAVE ALREADY ADDED ANOTHER $700 MILLION. THIS IS TYPICALLY SEEN AS A SAFE HAVEN. INVESTORS RUSH INTO IT IN TIMES OF TURBULENCE. WE COULD CONTINUE TO SEE MORE INFLOWS. JOE: STILL WITH US, CREDIT SUISSE CHIEF EQUITY DILUTE -- EQUITY DERIVATIVES STRATEGIST, AND BLOOMBERG'S SARAH PONCZEK. WHAT WOULD YOU LOOK TOWARDS NEXT IN TERMS OF PESSIMISM, I DON'T WANT TO OVERSTATE IT. WE KEEP THINKING WE WILL BREAK OUT TO NEW HIGHS, IT DOESN'T REALLY HAPPEN. WHAT ARE THE THINGS YOU ARE LOOKING FOR THAT WILL DETERMINE THE NEXT DIRECTION? M ANDY: THE ANSWER ALWAYS COMES BACK TO THE FUNDAMENTALS AND THE DATA. THE THINGS WE LOOKED AT ABOUT WHETHER THAT COULD PERSIST GOING FORWARD, HISTORICALLY, FOR YOU TO GET IT, YOU NEED TO SEE A PICKUP IN ECONOMIC GROWTH. UNTIL WE SEE THAT, I THINK THE MARKET WILL PERSIST IN TRADING SIDEWAYS. SCARLET: HD SUPPLY WILL BE SEPARATING INTO TWO PUBLICLY TRADED COMPANIES. IT WILL SEPARATE INTO FACILITIES MAINTENANCE AND CONSTRUCTION AND INDUSTRIAL BUSINESSES. AGAIN, THIS WILL BE A TAX-FREE SPINOFF. THIS WILL BE COMPLETED BY THE MIDDLE OF FISCAL 2020. IN THE MEANTIME, JUST TO GO BACK TO THE BROADER MARKETS. THE ECONOMIC DATA WAS NOT VERY IMPRESSIVE TODAY. CONSUMER NUMBERS IN THE U.S. DISAPPOINTED. GERMAN BUSINESS CONFIDENCE ALSO NOT SO GREAT. THERE IS JUST THIS FEEL OF SOFTNESS. OUR PEOPLE TALKING ABOUT RECESSION AGAIN OR IS THIS BEING PUT ASIDE? SARAH: WHEN PEOPLE TALK ABOUT THE ECONOMY WHEN IT COMES TO THE U.S., THEY ARE TALKING ABOUT SLOWER ECONOMIC GROWTH. YES, A FALL IN CONFIDENCE TODAY BUT IT IS STILL RELATIVELY HIGH. YOU MIGHT SEE CONFIDENCE TRENDING LOWER. AT THE CURRENT MOMENT, PEOPLE DON'T LOOK AT THE CURRENT MOMENT AND SEE IT POINTING TO A SPECIFIC RECESSION. WE SAW THAT WITH GERMAN ISO NUMBERS THIS MORNING. CONTINUING TO SEE WEEK DATA OVERSEAS, STRONG DATA IN THE UNITED STATES. SLOWING GROWTH -- SLOWING GLOBAL GROWTH TO BRING THE U.S. LOWER OR FOR YOU START TO SEE PERKS OF IT HIGHER OVERSEAS. CAROLINE: WE HAVE SEEN AGAIN THE BID FOR BONDS BACK ON WHEN IT COMES TO SOVEREIGN BONDS AND TREASURIES. HOW ARE YOU SEEING THIS ACROSS ASSET CORRELATION? TODAY, FINALLY, A BID FOR BONDS AND A SELLOFF IN STOCKS? MANDY: WITH THE AUGUST CORRECTION, NOT JUST ACROSS ASSET BUT WE HAD IN AUGUST, EQUITIES, RATES, GOLD, ASSET CLASSES, THE HIGHEST CORRELATION OVER THREE YEARS. SHOWING HOW MUCH FOCUS IS ON THE UNDERLYING ECONOMIC FUNDAMENTAL. JOE: WHAT CHANGES THAT? WHAT GETS US OUT OF THIS RANGE? MANDY: I BELIEVE IT IS ECONOMIC FUNDAMENTALS. Q4, WE DIDN'T SEE THAT BID TO CORRELATION. WHEN IT IS MORE MACRO, MORE ABOUT ECONOMIC FUNDAMENTALS, THAT IS WHEN YOU SEE THE BID TO VOLATILITY, CORRELATION, AND ASSET CLASSES MOVING TOGETHER. AS A COMPARISON, THE LAST TIME WE HAVE SEEN SUCH ELEVATED LEVELS OF CROSS ASSET CORRELATION WAS THE BREXIT VOTE. SCARLET: LET'S TALK ABOUT STIMULUS, THE THING THAT WILL KEEP US AFLOAT AT THE VERY END. CHINA, THE PBOC PERHAPS NOT COMING IN AS STRONG AS SOME EXPECTED. FRANCE PERHAPS ALSO SHY ABOUT TALKING UP THE NEED FOR FISCAL SPENDING. THE FRAGILITY WHEN IT COMES TO THE GLOBAL ECONOMY. MANDY: IF WE DO SEE CONCRETE MOVES AND EUROPE TOWARD FISCAL STIMULUS, THAT WOULD BE A GAME CHANGER. WHAT EUROPEAN GOVERNMENTS ARE RELYING ON IS MONETARY STIMULUS. IF WE DO SEE CONCRETE LEGISLATION. I THINK THAT WOULD BE A RISK ON POSITIVE SIGN. CAROLINE: SANTANDER, THE SPANISH-BASED LENDER, A BIG PLAYER IN LATIN AMERICA AND AMERICA, 1.5 BILLION EUROS FROM SANTANDER U.K., APPROVING A TENCENT PER-SHARE DIVIDEND. ACCOUNTING PRINCIPLE THAT DESCRIBES WHAT SEEMS TO BE A PERMANENT REDUCTION IN ASSETS. WHETHER OR NOT THE PPI AGAIN IS ENGULFING THE COMPANY, WE WILL DIG INTO THOSE DETAILS. WE WILL GET NIKE AFTER THE BELL. ONE OF THE CONCERNS ABOUT NIKE IS THAT IT WILL BE AFFECTED BY FX. SARAH: IF YOU LOOK AT THE DOLLAR'S RELATIVE LEVELS, IT IS VERY STRONG. IF YOU WANT TO SEE THE FX EARNINGS, ESPECIALLY FOR MULTINATIONAL COMPANIES LIKE NIKE, YOU WERE -- YOU ARE GOING TO SEE A BIG MOVE IN RELATIVE LEVELS OF THE DOLLAR. IF YOU ARE LOOKING AT DATA OUT OF THE U.S., HOW MUCH STRONGER IT IS, A SCENARIO WHERE THE DOLLAR MOVES MUCH LOWER. JOE: BEFORE WE GO, MANDY, I WANT TO GET YOUR PERSPECTIVE ON OIL. IT HAS SOLD OFF QUITE A BIT AFTER THAT ATTACK. IT IS NOT MUCH HIGHER THAN PRE-ATTACK. MACRO CONDITIONS WHICH ON A DAY LIKE THIS WOULD MEAN A DECLINE VERSUS ONGOING TENSIONS WITH THEORETICALLY WOULD KEEP A BID UNDER THE PRICE OF OIL. MANDY: WHERE WE ARE SEEING A LASTING IMPACT AS A RESULT OF THE SUPPLY DISCUSSION IS IN THE SKEW, THE DEMAND FOR PUTS VERSUS CALLS. LAST WEEK, CALLS ON OIL WAS TRADING AT A PREMIUM FOR PUTS. EVEN THOUGH OIL HAS RETRACED IN TERMS OF PRICES, THAT INVERTED SKEW, THAT IS A RESULT OF THE SUPPLY DISRUPTION RISK. SCARLET: WE WILL KEEP AN EYE ON THAT. WTI TRADING AT 5709. MANDY XU AND SARAH PONCZEK, THANK YOU BOTH FOR JOINING US. ROMAINE BOSTICK IS STEPPING IN FOR "WHAT'D YOU MISS?" WHERE WE WILL HAVE HER ON THE IMPEACHMENT CALLS FOR DONALD TRUMP. ALSO, NIKE EARNINGS. THIS IS BLOOMBERG. ♪

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'Bloomberg Markets: The Close' Full Show (09/24/2019)

Scarlet Fu and Caroline Hyde bring you the latest news and analysis leading up to the final minutes and seconds before the closing bell on Wall Street. Today's show tackles the drama of WeWork and Trump's conversation with the leader of Ukraine Guests Today: Jason Browne of Alexis Investment Partners, David Swartz of Morningstar Investment, Nick Bennenbroek of Wells Fargo, Congressman Blaine Luetkemey, Mandy Xu of Credit Suisse. (Source: Bloomberg_TV)