trade or the retail story? midnight in hong kong. it is another night of violence. hundreds have been hospitalized as the university siege continues. live from london, i'm guy johnson, with vonnie quinn in new york. we are now counting you down to the european close on "bloomberg markets." ♪ vonnie: checking u.s. markets now, we start off pretty ok, but in the last half an hour or so, we have been dropping. 0.4%, the down about s&p 500 down 0.25%. it is the department stores mostly to blame for the s&p drop. kohl's down 17%, the worst of them. macy's and many of the others are also experiencing pretty major losses today. broadcom is up 2%. it is no longer the best performer in the s&p.

that goes to biogen. but broadcom still up 2%. the 10 year yield, 1.79%. guy: let's take a look at where we are here in europe. we are trading toward session lows when it comes to stocks. also a selloff when it comes to the oil market. the stocks now down -- the stoxx now down 0.3%. in italy, bonds have been out in front of the story. they certainly been taking a much more cautious approach when it comes to the trade narrative and the global economy over the last few sessions. equity markets have continued to push ever higher. let's get some analysis on where we are right now. lombard chief ts economist, joining us now. i want to start with your view of the u.s. consumer. we seen two big retailers out today, missing. the stocks have been pummeled. are you worried about the u.s.

consumer? charles: not really, to be quite honest. guy: why not? charles: i think real income is going up at a reasonable rate. the savings rate is not going to suddenly thaw, and therefore the consumer plunge, until the stock market sells off big time, which hasn't happened. as we see it, we are not looking at an economy that is going to go into recession. the cause of the next recession, if there is one, will be a stock depth downswing, not some like we've had for the last three, over the last 30 years now. guy: what about trade? charles: the trade issue is important, but the market is dangling around, hoping for a deal. some sort of truce. as far as we are concerned, there is no likelihood that the

u.s. and china are going to reach an agreement soon. but the americans obviously need to have something which gets them through the next election. that's really what they are aiming for. but in the long run, the argument is around who is number one. the question of who is number one is going to get settled by how the economies fall and get settled by any kind of battle of this kind. in the meantime, the extent the economy devolves into a kind of regional block, i'm afraid it's probably not very good news for stocks in the meantime. vonnie: explain to us what would be the catalyst for a stock drop. it feels like the stock market just keeps batting away left and right all of the things that might cause it to roll over. charles: we are talking about matters of hours, and i am talking about matters of months.

so the stock market is reasonably strong, and reasonably well bid. as long as people are looking for a trade deal with china, which they are, then they will probably continue to bid it up, and the trade deal will probably who soon to make the people want to believe in it believe in it. that will be that. it may will get us through to the election. of course, after the election, if trump wins, you've got to say that he's likely to revive some given issues which have all this dispute, and if trump doesn't win come up quite possibly the market won't particularly like the guy or the woman who does. one way or another, things look a bit more hazardous out there. but that's a year away, and the year is a very long time in stock markets. vonnie: yes it is. charles, what would you do in

the meantime? if using that is coming, would you wait a bit, and pull some funds for dry powder? charles: if you are talking about me personally, that's always a difficult one to answer investment isef my business. marketfar as the stock generally is concerned, our recommendation at the moment is that only three to six month basis, you still want to be mildly long u.s. stocks. guy: using the fed is going to cut next year? charles: no, i don't think that the fed feels at this point it necessarily needs to cut next year. guy: the fed feels right now it doesn't need to cut, but you think the data will suggest it needs to cut? charles: no, i don't. we think there will be a small recovery next year. the big downswing has largely been this year, largely on the

trade war events last year. as you know, the u.s. and china are about 40% of the world economy, but the rest of the world is 60%, and everyone else had to pay more for their imports because the dollar went up, and they got less for their exports because the yuan went down and world trade was going down. everyone but the united states and china was really hammered by this trade war thing. guy: in terms of the earnings story, why do you think the earnings story is going to be enough to say stock markets? moment in time where we are beating expectations, but not beating them significantly. if you take a look at absolute levels, they are not looking great. why aren't earnings going to sustain the stock market? as far as i'm concerned, earnings will probably trickle upwards, if we

are right about the fact that the economy will continue to grow, but probably at a below trend rate for the short-term. year, we think that the stimulus has been provided and the very low interest rates will start to kick in a little bit, and there will be a modest improvement. we are not talking about anything massive. vonnie: charles, where do you see the peak then? and go peak very soon back below 3000 on the s&p 500, for example? are there any levels you might be watching? charles: i don't really get into levels. i am sort of interested in whether things are going up or down, strongly or modestly, as the case may be. what we are saying is that at the moment, it is a modest up. and you know, that has got to be

good news for people, at least through the next six months or so. but as i say, i think there's going to be increased vulnerability towards the election itself. vonnie: let's move to europe, because obviously there's a lot going on with the ecb as well. it is the next move for christine lagarde? charles: christine lagarde? right, she can make any move she wants, but the problem they've got on the continent is that germany, particularly, is stuck in the water, dead in the water. that is because they are entirely dependent on exports for growth. the reason for that is that 10 years ago, they passed a constitutional amendment saying thou shalt not run a budget deficit, and all of a sudden they are discovering that if you yourself in a room and throw the key out of the window, it can be quite tricky to get out. that is the problem they've got

right now, and will have for quite a while, until such time as they get around to some fiscal stimulus. guy: there is still the window. we will talk about that maybe in a few minutes. charles dumas, ts lumbar chief economist, is going to stay with us -- ts lombard chief economist, is going to stay with us. let's take a look at global markets. here with the details, kailey leinz. kailey: the s&p 500 is down by 0.2%. we are seeing selling pickup in europe. a very different story then we saw in asia overnight, with the hang seng index rally and .6% in the asian trade -- rallying 1.6% in the asian trade. it would snap a five day losing streak. if we have into the terminal at gtv and take a look at the s&p 500, the yellow line is that 200 day moving average, long-term support, which we are still well above.

on the bottom, though, we are looking at the relative strength index, the momentum indicator. 71.5%,ow we are at about so overbought territory. if we did below that 70% handle, it could be a signal, so we are going to keep a close eye on that handle. we are seeing a lot of selling coming to the retail space, now down by about 1.5 percent. the biggest laggard is kohl's, now down the better part of 18%. it slashed its earnings outlook for the second time this year, this time by about $.50. that is dragging down other to partner stores nordstrom and macy's. home depot also out with disappointing earnings this morning. that stock down by the better part of 5% after comp sales missed for the third quarter in a row, and they cut their guidance for the third time this year. . the one bright spot in retail is t.j. maxx, now up about 0.9%. solid third-quarter report for them.

in the movie theater space, a report that the department of justice is looking to roll back rules that say movie studios can't buy theaters. that could see deals heat up in that space. amc, cineplex, and imax all higher. vonnie: coming up, chipmaker challenge. we hear from the ceo of qualcomm. that is coming up next. this is bloomberg. ♪

vonnie: live from new york, on vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in oncourtney: the e

committee is quite stunning -- is questioning two witnesses. the u.s. walked out of military talks with south korea today. seoul said president trump's demands that it pay five times more for having military troops stationed there raises lessons about the stability of one of america's closest alliances. hong kong chief executive carrie lam has called for peaceful resolution to the university siege. the standoff between police and antigovernment protesters raised fears of a bloody crackdown. or demonstrators escaped were evacuated overnight. about 100 remain on campus. new home construction in the u.s. is on a roll. single-family starts registered the strongest race since the beginning of the year. the number of permits was at the

highest level since 2007, a sign that homebuilding stay healthy for months to come. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: thank you. we are back with charles dumas, ts lombard chief economist. curious where you think you dollar will go, and if it will make any difference to the global economy should the dollar move pretty strongly in one or the other direction. charles: the answer to the second question is yes, in that the strength of the dollar has been a problem in terms of , and exacerbated a year ago by the repatriation of funds by the united states, companies under the new tax act, dollarsult of which the not only strengthened very substantially, but the availability of dollars in the

offshore markets was sharply reduced. that caused a lot of difficulties. it is fair to say the dollar side.now is high on my reckoning, it is barely .lose to its upper limit the dollar is helped by a couple of factors. one is that the oil and gas sort ofare consistent -- are a consistent source of upward pressure compared to the past. the levy ofs tariffs has the equivalents of a devaluation, but it was a devout you a that was ultimately not card full -- not called for, and that causes an offsetting move of the currency, which in this case is upwards. that has probably work its way through the system, but it remains a source of strength. in the meantime, the fact that

the euro zone has been so badly hit by the backwash from the trade war has japan and the whole of the pacific rim mainmies means that the numbers for the opposite of the dollar are weak. we don't see any big movement in the dollar, so it is high, but it is going to stay high, is the broad conclusion. vonnie: so is that the case -- so if that is the case, what about some of the emerging markets? do they experience an even tougher time than anything you've been describing for developed economies? charles: i think those guys were the main fall guys a year ago. there is a sort of bloodbath financially in emerging markets pointsago because of the i was making earlier. the dollar is up and the yuan was vastlyo life

more difficult for them, and they had also been running deficits for several years, in which case they had larger dollar debts. the debts became more valuable and the interest rates were going up, etc. so that was a disaster, and these guys went in for austerity programs, which hammered world trade in the first half of this year. but there's a small recovery in the numbers we have seen so far from the third-quarter, with world trade beginning to pick up from second quarter lows. i get the feeling that the worst has passed in terms of this downswing associated with the trade war effect on the foreign exchange market itself from a year ago. guy: how strong will the u.k. economy be this time this next year? it's quite to get quite a lot of fiscal stimulus. charles: i think the u.k. economy is going to be in reasonably good shape. there's been a lot of deals and investment and other stuff pent-up by uncertainty as a result of this exit brouhaha --

this breaks it brouhaha -- this brexit brouhaha that's been going on. if labor bang win the election, there's going to be a lot of win thety -- if labour election, there's going to be a lot of difficulty with what they going to do next. if you assume the tories are going to win, which i think is more likely than not, the economy should get a couple of quarters good boost, and the stock market likewise. guy: the pound isn't likely to go up in that scenario. we are trading just shy of $1.30. will u.k. inflation continue to drop? breakevens have been falling fairly rapidly of late, probably based on what is happening with the pound. do you think fiscal will offset that? charles: there's no question that the huge splurge of budget deficits is going to have some

effect on bond yields in the upward direction, and both real and nominal terms. meantime, the wages are quite lively at 3.5%, and that means more than 2% for unit labor costs if you allow for productivity. one way or another, you've got to assume that there won't be all that much scope for pouncing rates at all, and if anything, which will tend to go up by this time, by the middle of next year. guy: do you think we need to worry about a no deal brexit? assuming the tory party wins, do you think that it is likely that boris johnson could get a trade deal done and we still avoid the hard brexit? charles: absolutely. the whole business about a no deal brexit is a kind of wild

goose chase after nothing at all. the reality is everyone needs a deal, including the british economy, including boris johnson, who presumably was to carry on with being prime minister. we will almost certainly at some stage be taking the path of least resistance. but also the germans. thousands of german jobs depend , 60xports to britain billion euros a year. they only import half of what they export. so those guys need a deal. the same is true of belgium and holland even more than us. well, as much as us. guy: charles, thank you very much indeed. barred dumas, ts lum chief economist. lombardm barred -- ts

chief economist. this is bloomberg. ♪

guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." it is time for your latest bloomberg business flash. shares of home depot down about 4%. they cut growth estimates for the second time this year. boeing is building momentum for when it's grounded 737 max jet returns to the skies. the company sold 50 of the planes at the dubai airshow. of airline signed a letter intent for 30 jets, and an undisclosed customer order 20. the orders totaled more than $6 billion at list prices. pg&e is close to a settlement with california over wildfires. the bankrupt utility would pay

more than $1.7 billion in fines. they are charged with not maintaining equipment that caused fires in 2017. let's take a look at markets. we were taking a leg lower a little earlier on. ae s&p 500 has improved little bit, down less than four points now. in the dow, the worst performer is home depot, down 4.6%. walgreens down a percent as well. nike down 1%. several of the dow components are dragging. the nasdaq is the only one higher right now, up by about 0.1%. a couple of stocks keeping the nasdaq on track, including biogen, and of course, we also have qualcomm. qualcomm is now putting a drag on the nasdaq. it is down several percentage points. guy: european markets look a

little bit like this. ftse up a touch, dax down a touch, cac down a little more. utilities, media, oil and gas, food and beverage, a more eclectic mix of sector performances today. no clear risk on or risk off. volume has been ok today. the ftse has been out for warming -- has been outperforming mainly because of what has been happening in airline stocks. we will take a look at that in more detail. that's coming up. this is bloomberg. ♪

guy: 30 seconds to go until the end of regular trading in europe . a fairly mixed up picture. stocks started positively, faded through the afternoon, now

sitting on the flatline to just above it or just below it. let's look at the stoxx 600. we hit our highs early mid morning. six then we been fading. the u.s. retail story dragging markets down. stoxx 600 down .2%. i do not think there is a defined story coming out of today in terms of risk on risk off. it does not feel like that if you look at the constituent parts of the market. let's look at the individual markets in europe. the ftse up is .1%. the cac 40 lagging a little bit. lvmh weighing on that market, down .4%. i'm not sure there's anything clearly defined out of the narrative. the sector story is exactly the same. i do not think there is anything clearly defined in the sector story that will give you a clear idea of what we are looking at. easyjet had a good day today.

airbus has had a solid story out of the paris -- the dubai air show. that is more of an industrial story. basic resources, the miners are positive today. if you're worried about trading or china or global growth, you would not see the miners doing so well. the margins may be a little bit risk on. , it isend of the market not a clearly defined as it normally would be. utilities are off. maybe that is more risk on. the bond proxy story is not catching a bit, despite the fact that the bonds are looking ok. media is trading lower. oil and gas trading lower. the oil prices come down this afternoon. beverage, that is the nestle of the world. i do not think the sector story is this clearly defined risk

on/risk off narrative we have been able to deduce over the last few sessions. i thinkal stop stories, this probably is more of a market you look at and say from a bottom up in a top-down perspective. certainly that is the story in the united states. airbus up .7%. a cracking story coming out of the dubai air show. lots of orders. downgrading the weight sees the market developing. seems to been welcomed strongly by the market. then there is ses. states in the united talking about public spectrum options rather than private spectrum options and this is split -- this is hit some of the satellite operators. look at the impact. down 23%. that is the european market. vonnie? that has to hurt. here in the united states,

holding at 31.20 -- at 3120. the dow is down .4% more. lower than the nasdaq, where we are seeing huge stories pull the nasdaq up. the 10 year yield is at 1.79. the dollar index is unchanged. crude oil continues its downward journey, dragging on the oil explorers and equipment writers and so on. $55.75 for a barrel of wti. let's look inside the s&p 500. not fully finished with earnings season. biogen had it a few minutes after good news from the fda on a potential drug is developing with samsung. constellation brands has it now 2.7%. did not find any particular reason, definitely money went into constellation brands. broadcom up 2.7% on morgan

stanley's upgrade. morgan stanley saying it is using the software side of the business and developing the data side very well. there you can see biogen up 1.9%. let's take a look at some of the core performers. it is all about the consumer. kohl's, macy's, nordstrom, home depot, l brands, cap. it is all about -- gap. it is all about the consumer. guy: how strong is the consumer? certainly something the global economy is hanging its haad-on. let's talk about the u.k.. a pre-election debate between boris johnson and jeremy corbyn, the first time the leaders have gone head-to-head in a televised debate excluding prime minister's questions. here for a look at what we should look for is just shankleman. jess

jess: this debate is everything for jeremy corbyn to win and everything for boris johnson to lose. boris is 17 points ahead in the polls. he does not need to do this. by not may was damaged doing any debates at all. just by showing up, jeremy corbyn is going to do quite well. vonnie: in some ways jeremy corbyn is not the main threat to boris johnson. is it an advantage to boris johnson that others cannot take part. it is definitely an advantage to jeremy corbyn that the libdems are not taking part. the biggest threat to boris johnson is the brexit party. were takingage part, that would be a huge threat to boris johnson. libdem leaderthe

is not taking part, he is the main challenge to the tory party, perhaps we should vote labor instead of the libdem if we want to stay in the eu. guy: will be about brexit or national issues? jess: brexit will absolutely come up. bookies have been taking that on what kind of words will come up. the u.s. tech entrepreneur was one, the tech entrepreneur boris johnson allegedly have a close relationship with. some of the phrases, get brexit done. jeremy corbyn is also likely to come out criticizing the tory austerity policy. thank you very much indeed. jess shankleman joining us ahead

of the tv debates between boris johnson and jeremy corbyn taking place tonight. week ofthe second impeachment hearings into president trump underway. let's bring in kevin cirilli, chief washington correspondent, joining us from capitol hill. today was the first day of the week of hearings. jennifer williams, the special advisor for europe and russia in mike pence's office are testifying. what are we looking for them to say? kevin: the house intelligence committee just resuming from a recess, there was a brief break in the first round of testimony from jennifer williams, who is that advisor to vice president mike pence as well as benjamin. -- as vidman. we got new details on the calling question from july where trump telephoned president zelensky. dman is testifying he found

the call inappropriate and he knew immediately as the call was happening that he had to go to white house counsel to raise the concern he had about the call. jennifer williams testifying that she found the call was "ncredibly "political in nature and she also had concerns about the call in question. the president has been forcefully going against these two folks who are testifying, saying they are never trumpers. the testimony continuing as we and tomorrow gordon sondland, at the eye of the storm and all of this, the one president trump called to ask for an update for three guard's the investigation, now the president's entire administration wrapped into this. there were plans for vice president pence to go to the ukraine inauguration and then

jennifer williams testifying she was notified that was off the table. vonnie: kevin cirilli. thank you. we will go back you in just a little bit. we want to break in with breaking news on trade. the u.s. and china are said to be applying tariff relief to the deal from may. remember the failed near deal in may we thought was going to happen and then did not? pump. a bit of a market apparently the u.s. and china -- tyingto be carrying tariff relief that failed deal. that is according to people familiar with the talks. they are using that deal as a benchmark to see how much tariffs should be rolled back in phase one of this broader trade agreement. peoplering in one of the who knows a little bit more about this story, fred murray in our london story. he is our bloomberg -- brendan murray and our london story. he is our trade star.

we were close to a deal in may markets believed it that we thought markets -- we saw markets getting roiled when it fell apart. what caused it to fall apart and could that be a sticking point again? brendan: it was a hard issue they cannot come together on that made it fall apart. what we are seeing is each side inching closer to each other. the u.s. wants to go back to the may deal. they said we were 90% of the way there, let's go back and try to get some of that done. china said fine, but we want tariff relief in exchange for that. what we are doing from what we are reporting today is tying the concessions china is going to give from that may deal to the u.s. scaling back some of the tariffs in place before the deal fell apart. an interesting development and perhaps assign the u.s. is willing to give up some of those

tariffs they wanted have in place for such a long time. it is not done yet, but it is a sign the u.s. is willing to go into those tariffs they wanted to keep over a long period. some of the more hardliners inside the trumpet ministration wanted to keep them on for a long time. vonnie: at this point, we are talking about the $250 billion. how more likely is the u.s. to given to what china wants now that was in may, given we are several months later, the time is flying by. pretty soon we will be in the middle of election season. brendan: exactly. the chinese are attuned to the weakness president trump ip feeling from the economy, to some extent, and the impeachment hearings are going on. they will be attuned to the pressure the president might be feeling to get a win. might be feeling like they have the upper hand and maybe that is

why you are seeing the u.s. reach for some of those tariffs they did not want to give up at all. way andhave come a long in some ways achieved relatively little. the president has been ratcheting tariffs up and up. the chinese clearly want those to be reduced. vonnie brings up the election. if the president gives in too easily, if he rolls back the tariffs with little to show for it, that will not work against him. how difficult is the balancing act? brendan: is a tough one. he will have democrats jump on him immediately if he goes too soft on china and takes tariffs off and lets huawei have licenses. he will feel up on either side. if he goes too tough and let's additional tariffs go on and keeps escalating the trade war, or if he goes too soft, he will hear it from everyone of those democratic opponents he is up against. guy: we will leave it there.

brendan, thank you brendan murray on the latest on the trade story. a quick look at where we have settled in the europe. this is what it looks like. the headline level, not much to conclude from what we have seen in terms of the price action. the ftse up little bit, the dax up a little bit. the cac 40 down a little bit. the retail narrative out of the states is worth paying attention to. the market waiting for details on the trade deal. don't forget, you can carry on with the coverage at the top of the hour. jonathan ferro in the united states live on dab digital radio in the london area and around the world on all due bloomberg devices. this is bloomberg. ♪

guy: from london, i'm guy johnson. vonnie: from new york, i am vonnie quinn. this is "the european close" on bloomberg markets. at&t falling this morning at the stop was downgrading to sell from neutral by nathan since. they are casting doubt on the company's ability to hit the three year guidance. taylor riggs joins us from san francisco with more. taylor: a very rare downgrade to mentioned trouble reaching the target, the three-year plan target. the problem is three portions of their business, part of that included the entertainment group, the time warner media group, as well as the business group, all are looking at revenue declines. that makes up 60% of the business. the problem is the wireless segment now has to punch more

than its weight. craig is saying it could have to grow by 8% topline revenue to get the company to achieve its targets. they are losing video subscribers. a lot of the weakness continues in the video subscriber losses. you saw the chart of the analyst scorecard, which now only makes them the second cell. -- the second sell. video subscribers continuing to cut the cords. if you look the chart i am showing inside my terminal, the problem is 40% of the revenue comes from the wireless business. their continued struggle as net additions continue to fall. overall, craig pointing out a difficult picture for at&t. vonnie: taylor riggs in san francisco. post of bloomberg technology. thank you very much. guy: qualcomm shares are falling. the company is hosting its first analyst day in three years. the ceo spoke with bloombergs

caroline hyde to discuss what to expect in today's presentation on the evolution of 5g and partnership with apple. thes focused on the things companies naturally do well together, which is work on products. when you get engineers talking to engineers, things were cap re-well. that is where we are -- things do well. company, and our if you look at what 30,000 people do every day is work on products. when the engagement with a partner, that is a very natural relationship. since everyone is so interested in driving 5g and it is a long roadmap to do that, there is a lot of natural discussions going on in the product area. that is a comfortable place for both companies. >> what about the discomfort of the fact that they have bought the intel motor park -- motor chip part of the business. how long you think the

partnership will last? >> i think a long time. we are not unaccustomed to dealing with or working with a customer that has multiple sources of supply, some of them could be internal. what we find is if we are competing in the areas we are very good at -- we are very good -- we find a way to continue to expand our business. that has been true for a decade plus and i do not think it will be different here. >> what about the competition from china. huawei weight is becoming more self-sufficient. you have a relationship with huawei. how is that relationship and how is it with partners in china? >> our china business is quite strong and driven by the same things we talked about already. 5g and the same kind of worldwide expansion of the opportunity of cellular. we have a strong business in china, a lot of partners, including huawei, that we sell to. it is a big opportunity and a big business for us.

, we aresay in some ways insulated from the trade discussions. there is a lot of expansion happening worldwide with 5g in china. qualcomm is a big piece of that and it is a classic story of if you have technology people want or need and you are the strongest partner or a strong partner, you have the ability to figure out ways to win. >> you do not think the business has been curtailed? >> we have had a change in the structure of the chinese market as the huawei handset business has retrenched into china. it has changed the share. what people have done in reaction is they said what i will do is accelerate my 5g plans and not spent so much time on 4g. is it hasappened accelerated the intensity of the 5g rollout and not just at the high end. it has actually gone down into several tears below the premium

tier. we are spending a lot of time getting the chinese partner successful. >> do you think china is ahead of the u.s. in terms of 5g? >> not from a technology perspective. we are all working together to make 5g. if china and the united states not work together to make 5g the international standard, you miss the opportunity worldwide. you are seeing people cooperate in terms of technology. if you look at the deployment and speed at which stations are rolling out, china is quite fast. i think i made comments about how it will be 130,000 stations by the end of the year and a million here in china alone. those are tremendously large numbers if you put it in comparison to what you see in the united states. that does not mean the united states is not going quickly as well. you are seeing for the first time in cellular china and the united states launching in the same calendar year. these to be separated by two

years or five years depending on the generation. now everyone is trying to figure out how to get to 5g quickly and that has been good for us. >> what about good for your revenue flows? you've had years of negative flow. what about 2020? >> we think it will be a good year for top and bottom line, driven by 5g. we are pleased to have that opportunity. >> what don't we know about your business? >> what people do not realize is the opportunity we have outside of the handset space. we have a tremendous technology pipeline as a result of being strong in the smartphone space. it ends up that that technology is valuable for us to disrupt. these big industries being disrupted by 5g. opportunity to have to figure out how we leverage that technology pipeline into these new

industries. i think people, as they learn about that and they see what we see, they will be excited about that. >> you care about the share price? >> i am happy where it is and it always feels better to have it up, but you have to always be bank attention to the fundamentals of how the business continues to go. sometimes it is reflected in the share price, sometimes it is not. we just finished a large buyback , one of the largest in corporate history, bought back 20% of our shares, because we thought they were undervalued and it seemed like that will turn out to be a good investment. we keep driving 5g and these opportunities. we hope to see it reflected in the share price. guy: ceo of qualcomm speaking to caroline hyde earlier today. the share is down today, but up sharply over the last week, kicked into a higher gear august into september. the average price target at the moment is $95.84.

trading at $88. still a lot of headroom. if you go back through the analyst changes of last few weeks, there been some upgrades. today a knock on the back of that. 5g is coming. vonnie: it is interesting when the analyst was on today, the stock hit a session row. -- possession low. low.session it does not sound like a lot but it was a lot more than it was assigned in the early 4g days. perhaps investors were worried about the dividend, but it looks to be safe, at least for now. buys, 13 holds, only one sell on the stock. they are more the value end than the volume end of the market, which may protect them, particular when it comes to the trade story, which could upset

the 5g stuff, particularly when you think about what is happening with huawei. vonnie: semiconductor stocks in general have had an up and down year. david westin'sre interview with fcc chairman jay clayton. also mark mobius is coming right up with david westin on "balance of power." markets overall -- s&p 500 content to do nothing today. the dow jones industrial average down .4%. the nasdaq is still up .3%. biogen one of the stories doing well for the nasdaq today. this is bloomberg. ♪

david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin.

welcome to "balance of power," where the world of politics meets the world of business. on the brief today, kevin cirilli from capitol hill on day three of the open impeachment hearings. ries on a big change in the u.s. policy toward the west bank and teresa rafael. kevin, what are we looking forward to? kevin: it was remarkable to hear these officials testify before the house intelligence committee. describingindman virtually his thought process when he was on that july phone call between president trump and ukraine president zelensky. he said he had no choice but to report that phone call directly to white house counsel because he knew it was political in nature. then there was jennifer williams. she is a senior advisor to vice president mike pence. she also described