Transcripts For BLOOMBERG Bloomberg Best 20240713

The nations strength. The message is one of unity. Meanwhile, violent clashes in. Ong kong there have been pitched battles all day long. Boris johnson posts a brexit plan, but it is short of a done deal. Quick there are some issues that are problematic. Australias central bank rolling out of rate cut. Investors are still ready investors are already starting to price in another cut for december. Quick the ultimate goal according to the u. S. Trade Representatives Office is to hit europe where it hurts. Plus, an exclusive conversation with indonesias president. He pleasures reforms that will attract investors. Promises reforms that will attract investors. Its all ahead on bloomberg best. Hello and welcome. This is bloomberg best, your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. Week began with markets on edge in the wake of a bloomberg report the Trump Administration might set limits on u. S. Investment in Chinese Companies and Financial Markets. On monday, the white house walked that story at least part way back. U. S. Has no current plans to stop Chinese Companies listing on american exchanges according to a treasury official in response to a bloomberg report the administration is looking at ways to limit flows into china. It comes at a china at a time when china is looking to close its market to Foreign Investment , so what have the chinese said so far in response to the news . It has been played pretty restrained so far. 30 or 40 minutes ago, we had a spokesman for the Chinese Foreign ministry give the most direct comments about the news so far. They emphasized that Financial Cooperation has been good for both countries. They said that forced decoupling would be bad for american and Chinese Companies and for the people of both countries. They also said that sort of thing would cause a lot of instability in global markets. Is this posturing on the part of the chinese, or is the Trump Administration really looking to decouple Financial Markets . As we reported on friday, these his questions inside the white house are in early stages. No decisions are really imminent, but you can already see the impact that these ideas are having in setting the tone for a round of trade talks that are coming up next week in washington. The main focus now is to see if the chinese trade negotiator brings a deal to washington next week and if he does, what is in it. Quick the chinese president has kicked off a mammoth series of ofades to mark 70 years communist rule. His has nothing can stop the chinese advance and china must remain committed to the onecountry twosystems approach to maintain the longterm longterm stability of hong kong. Theres no force that can reshape this great nation. No force can stop the Chinese People and chinese nation from forging ahead. The message really is one of unity and stability and certainly economic and military might. This is china putting, of message for thei domestic audience of strength and stability, at a time when china is facing incredible pressure domestically for the external environment where the u. S. Challenges china on a number of fronts. China and the communist party would like us all to focus on the military parade behind us and president xi jinping. Beijing is celebrating with unbelievable pictures and events and music. And hong kong, protests are intensifying. There have been pitched battles all day long. 31 protesters have been hospitalized so far. Two are in critical condition. One is in serious condition. We have confirmation from the police that a Police Officer actually did shoot one protester with a live round of ammunition. This tells you just how far this protest movement has gone and how far police have gone as well repel. The city obviously completely on edge. Beijing, very different celebration. It was an anemic 10year bond option for japan. Bonds had their worst monthly performance since 2016, a huge selloff in treasuries follow that. What was behind that failed auction . It all has to do with plans to steepen the yield curve, and those plans have been stiff enough to really alarm investors. Reaction was swift. We saw a reaction as well as spill over in europe and in treasuries, too. Quickly i ice and factory index posting its weakest reading since the end of the last the ismn factory index. This is obviously the second monthly contraction. It is a cause for concern. We were here in 2016. The euro zone manufacturing showing the worst month since 2012. The question is does manufacturing pull down the consumer or does the consumer pull manufacturing back up if you stays strong . That is what the fed is waiting to find out and it will take a while before we get a better clue. What i trading day it has been. We started in the green, had a selloff in bonds, and then the complete reverse happen. Once we get ism manufacturing data, woeful from the u. S. I have been optimistic about the Global Economy, and it is harder to remain an optimist these days. Boris johnson unveils his brexit plan and warns the eu to compromise or watch the u. K. Walk away from talks. The u. K. Prime minister spoke to the conservative party in manchester earlier with his outline of a new brexit plan. He gave a warning of what could happen if it does not fall through. No deal is not an outcome we want or an outcome we seek at all, but let me tell you my friends, it is an outcome for which we are ready. What we saw today, the brinkmanship where he said im giving you nine days to come up with a deal, or we are going to go out at the end of october without a deal, and that is one week before european leaders are set to meet in brussels to go through the proposed deal. We also saw a bit of conciliatory language from Boris Johnson who says hes not against europe, but the bottom line is his new proposal is unlikely to be anything european leaders including the irish could possibly agree to. What a day it has been. Quarterhest autumn to a since 2009 as we question growth around the world, the worries about the jobs data in the u. S. , worried about manufacturing worldwide. Pretty ugly start to the quarter, to the jewish new year. A very explicable selloff. Theres not a whole lot of mystery this time about what the anxiety is. It is very datadriven, very much about recession fears. Just when it started to look like we were maybe coming out of that or putting this behind us or maybe other things were going on, that ism number yesterday i think still reverberating, still causing a lot of anxiety. Theres nothing real good out there for people to hang their hat on. For thets are waiting latest services data. That would be september services missism, and it is a coming in at 52. 6. Markets getting clobbered. That is a huge miss we are getting. Weaker than economists were anticipating, very much consistent with what we saw in the manufacturing ism earlier this week. All of this contributing to this negative tone in the market and concerns about potential recession in the u. S. Economic data until this week looked more like an economy growing above 2 . Now that slower pace of activity is starting to settle into the leading economic indicators. At one point, it looked like we were headed for a Third Straight day in losses. Their decline over the fourth quarter, and then things turned around. We have recovered because we believe the fed is going to come in and save everyone. Certainly a lot more emphasis on the jobs report tomorrow. Eu leaders express doubt over Boris Johnsons brexit deal. His plan would keep Northern Ireland in the eu Single Market for goods but see it leave the Customs Union. The Prime Minister told the house of commons it is up to the eu tua, to compromise and agree to the deal. Europeans now have 24 hours to digest the plan. They really see there are issues that are problematic. The fact that you stay in a stable market but pull out of the Customs Union it is unclear who would deal with the vat collection. At the same time, it almost implied they would be checks. This is something the irish said would never happen, that the Irish Economy was their priority. At this point, we understand essentially europeans will tell Boris Johnson we need Something Better in a week or there is a big risk we may not make it in time for the october 17 summit. They want to come into that summit with something that its clear will be approved. It is friday, jobs day. 130 6000 jobs were created in september, just shy of estimates. August numbers were revised higher by 38,000. Ratenemployment unexpectedly improved, dropping to 3. 5 . Sort ofis a middle report. Not weak enough to concern that weakness is spreading on Global Manufacturing throughout the economy but not Strong Enough to suggest that we are immune. For americans across the country, the headline number is the 3. 5 unemployment rate. It is a 50year low. I think the economy is now in a turning zone, and i think we have had a soft two quarters, but i think now we will be moving into a much Stronger Economic story. I think we are turning, but i dont think we are turning into the fast lane. In fact, i think we may be looking for a tougher slog over the next couple of quarters. Tohave been very conditioned twoplus gdp growth, what we will see in q3 and q4 is a lot of engines of Economic Growth shutting down. We saw hints of that in surveys. I think you will see it in a lot of other Economic Data over the next couple of months. As we review the week on bloomberg best, the chicago fed president response to some of the recent downbeat u. S. Economic data. I dont know if one more rate cut at this point is the right decision or not. I think we will have to go into the meeting and see. Plus, an exclusive conversation with indonesias president. Topext, more of the weeks business headlines. Consumers rush to stock up on staples before taxes take effect. One of the hottest selling items toilet paper. This is bloomberg. Best. Is bloomberg lets continue our global tour of the weeks top business stories. The wto ruled on a dispute between the u. S. And europe. That decision immediately. Scalated tensions over tariffs the wto has given President Trump the green light to impose recordsetting 7. 5 billion dollars worth of european exports. That is in retaliation for illegal government aid to airbus. The wto today handed President Trump a pretty big weapon in trying to rain and sun on some of europes trade abuses. Governments and the eu have unfairly subsidized airbus to the tune of 7. 5 billion dollars, and now the u. S. Can retaliate against european goods to that amount. The u. S. Is ready to slap tariffs on billions of dollars of european products following a landmark ruling from the wto on aircraft subsidies. Not surprisingly, aircraft are on the list of retaliatory targets u. S. Is going to hit. Its going to hit a 10 tariff on large aircraft coming from a few European Countries including the u. K. And france. Also, though, other items completely unrelated to aircraft. 25 tariffs on things like olives and cheese. What the ultimate goal is according to the u. S. Trade Representatives Office, is to hit europe where it hurts in order to get them to the table for a negotiated settlement. The impeachment inquiry deepens. Rudy giuliani, secretary of state mike pompeo, and attorney general william barr are drawn deep into the inquiry after new details about the admins rations foreign contacts emerged monday. The house issuing a subpoena to Rudy Giuliani as well as the president s personal attorney. They want to know specifically what his role was in orchestrating some type of overseas communications with ukraine following that phone call now in question between President Trump and the ukraine president. Yesterday, there were also reports secretary of state mike pompeo was on that phone call. Meanwhile, another phone call now in question. The New York Times first reporting last evening that President Trump reached out to australian Prime Minister Scott Morrison to see if he would be willing to look into the origin of the Mueller Report and work with attorney general william barr. It is just the latest in a series of questions for this administration about President Trumps communications with global leaders. The japanese government finally raising the National Consumption tax to 10 after twice postponing the move over concerns about its impact on the economy. Tax hikes rarely popular anywhere in the world, so how are japanese consumers reacting to it so far . Weekend, customers coming to dine in or by some of those bigticket items ahead of the tax hike. One of the hottest selling items toilet paper. Thats right, customers were going to shops and stocking up on toilet paper ahead of a tax hike and local shops were saying they are completely sold out. A sign consumers are thinking about the tax hike in some way or another. That said, economists expect the burden on consumers to be less compared to 2014 when the tax hike rose from 5 to 8 . Chinas september manufacturing purchasing Managers Index rose to 49 point eight, fractionally better than forecast. What does it all suggest . Economists do not see the slightly better than expected numbers as a sign of recovery or stabilization. The official pmi readings that Manufacturing Sector in contractionary territory for the fifth consecutive month. The pboc has been stepping up , but anytary support additional stimulus expected to be moderate concerning the fact the pboc is trying to prioritize stabilization and avoid any runup in financial risks. Economic pain and hong kong is intensifying with retail sales posting a record plunge past the longrunning and escalating protests cripple tourism and spending. It does not seem like there is letup insight and it comes to where demonstrators want to go next and also where the economy is headed, too. Tourist numbers, we knew they were down throughout the summer. Now we have hard evidence that in august, it was the worst on record. 42 in august and we know during this golden week holiday period, most of the shopping is from the mainland chinese, so the value of retail sales down 23 . That was the most on record yearoveryear in august. The economy obviously feeling. He impact the global easing cycle continues. A straley and stocks surged the most in a month after the countrys Central Bank Cut Interest Rates. The rba also said it is prepared to further ease Monetary Policy if needed. Ecb andve seen from the fed of late has been more hawkish rate cuts, certainly dubbed that by some, and yet from the rba, we have seen an allout dovish rate cut, havent we . That is the way the market seems to have interpreted things. Quite remarkable. They managed to achieve something the other major Central Banks managed the other central bank have not. Already, traders are starting to price and another cut for december which will take the rate down to 0. 5 , so they managed to achieve something which the others have not. Another cut from india. The Central Bank Cutting its key Interest Rate for a fifth time this year. 25 basis points. Growth has been slowing in this country from it percent levels. We are talking below 6 in fiscal 19. The rba governor said he will maintain his controversial policy stance as long as it is necessary to ensure growth. Market response, however, has been quite tepid because they were anticipating a much sharper cut. 25 basis points has been discounted and there is a view revive the enough to slump in demand in the economy. You are watching bloomberg best. This week, bloomberg got inside perspective on Monetary Policy from chicago fed president charles evans, a Voting Member of the fomc. He explains when it comes to further rate cuts, he is still on the fence. Im openminded about the decision, and we will learn more before the meeting at the end of this month, but i would say the ism number was, you know, a negative number for manufacturing. We received a number of reports over the last many months about trade uncertainty, about how Manufacturing Enterprises were a bit reticent to expand capacity, Capital Expenditures have been very weak, so i think it is a little more confirmation of the reports we have been seeing, and i think it will be very important to see the progression from here. Not a hugeuring is part of the u. S. Economy, but it is a significant part of the u. S. Economy. It certainly is. In my midwestern district, we have more manufacturing than the average, so ive heard more reports about this and the weaknesses and what comes from trade uncertainty. The thing about Monetary Policy and what the right positioning is, i definitely think the fomc has been moving to what at one point last year looked like headed for slightly modest, restrictive position. Now we have an accommodative position and if one more rate cut at this point is the right decision or not, i think we will just have to go into the meeting and see. The consumer is important, as you indicate. Nevertheless, if the fed waits until there are signs that the consumer is beginning to roll over, is that too late . I think that would be an important concern which is one reason the committee has tried to get out ahead of this. We have repositioned the policy from being accommodative to policy to being slightly ahead of policy. I would say the weakness in the ism and in manufacturing is something that definitely increases concerns. Im definitely looking at that data, but at the moment, it still looks like my outlook for this year is 2. 25 . Next year is about 2 . This is a pretty good growth outlook. The question is if we will be able to navigate the uncertainties and some of the shocks that come our way and get that growth pact or if there is Something Else that pushes us to decide. I think that is why we have moved to a more accommodative policy and we will have a discussion as to if more is needed at the end of the month. Coming up on bloomberg best, more of the weeks top business news. Credit suisses ceo survives an internal investigation. A big decision by Charles Schwab upends the world of online trading. Plus, more compelling conversations. The head of the International Energy agency warns the Global Economic slowdown may take a toll on oil demand. We may revise down our numbers if Global Economics continue to weaken. This is bloomberg. Welcome back to bloomberg best. Lets revisit some of the weeks top interviews on Bloomberg Television. The sharp, midweek selloff renewed discussion of a Recession Risk on wall street. Ceoareas Capital Management Michael Righetti said his company is still finding plenty of investment opportunities. He spoke exclusively with jason kelly. I think everyone looked at the u. S. As a hotbed of uncertainty, not a safe haven bringing and capital. But when you look across markets, were still finding ample things to invest in, real estate markets. The central bank is very accommodative. People feel theres an easy be put, which is allowing people ecb put, which is allowing people to be active. Jason talk about the credit market out there. How are companies feeling, given some of this macro uncertainty . Theres a huge dichotomy in the world because markets crave certainty and we dont have a lot of it. We can look at whats happened in the economy. Fundamentals in the u. S. Economy, very strong. But a bifurcation between the Manufacturing Sector and service sector, health of the consumer relative to the lack of health in the manufacturing community. Generally, the folks that we talked to are optimistic, cautiously. Balance sheets are strong and healthy. Revenues are up. Profits are up. But were starting to talk ourselves into a slowdown and see a shift in sentiment. Businessdoes the ipo need a dose of disruption . This week, venture capitalists and Corporate Executives held a summit to discuss whether the system for Public Offerings is still working. One of the organizers for the event is bill gurley. He spoke with us about key issues, starting with why companies are waiting so long to go public. Direct obviously a result of their being enormous amounts of capital and the private market. It used to be, if you go back in time, one of the reasons to go public was to raise capital. Now theres so much capital available, you dont have that as a reason to go public. I certainly think thats been part of the delay. If you view the process as unfair, that might also be something that slows down your path to get there. I dont think its healthy for companies to stay private forever. I think its super advantageous to companies to pass through and become public. And im hopeful that if we can fix this process, it will lead to more companies coming out. Going public does come with a lot of responsibility. One of the criticisms that wall street and secondary investors have had is with these dual and multiple share structures out there, with the way that, i guess, the control that certain ceos and founders have over the companies once they become public, isnt really fair. The balance of power in Silicon Valley has been leaning to the founder and a long time. Theres tons of sources of capital and theres only one zune or facebook. And thats led to founders being able to make a lot of decisions they want to make. In certain cases, that goes to a level where it costs the Company Rather than helping the company. One of the reasons i encourage Companies Going public is because i think it ups their g ame. It presents more pressure, forces them to be more transparent. And for those that respond to that, it takes the company to new heights and new levels. Viviana a hot topic lately, oil, especially since the attacks on saudi facilities. Theyve threatened a serious disruption of the global supply. Prices have not reacted to the sharp as much as many shock as much as many expected. In an exclusive interview, the ceo told matt miller he thinks markets have stayed relatively stable. Reasons, buta few two of them are important. The first one is the saudi authorities, very quickly, moved and reassured markets that they would come back very quickly. And many other place, such as international agencies, said please come down. We have enough stocks and if there is a need, we will be bringing those stocks to the market no problem. This is one reason. And second, united states, yes, Oil Production is still growing very strong, shale Oil Production. There is oil in the markets. Out of these two, we didnt see a major jump in production. Current price levels are more or less there, where we just were before the crisis. Matt exactly, and saudis have been making progress in exports. Do you know where they are right now in terms of production and exports . Do you know the numbers . I would like to refer to what the saudi authorities say. They are very close, if not almost there, in terms of both production and exports. I have no reason to doubt about their numbers. Matt on the demandside, you have the iea expected growth to be above a Million Barrels a day this year and next. Is it still the case . Is that still your forecast, given the slowing Global Economy . So, we expect currently growth of about 1. 1 Million Barrels per day this year. First of all, it is much lower than the historical averages, much higher. But also, looking at the global drivey, weakening, china, of oil demand, experiencing the lowest Economic Growth since 30 years. Advanced economies are slowing down. We may well revise down our numbers, demand numbers, next days or months to come if the Global Economy continues to weaken. Viviana now to another bloomberg exclusive. Indonesias president says he aims to deliver on many of the major reforms investors are demanding. Jacoby sat down with bloomberg editorinchief John Micklethwait in his hometown in central java. Among the sweeping changes hes promising, changes to the countrys labor laws. Compete against other countries in attracting investment to create jobs. Complaints are always expressed to me, especially for labor intensive sector. They also express the need to simplify licensing. We will work on these two as soon as possible. I will talk to labor unions, discuss how to revise labor laws, without causing loss for workers. This is for workers. Foreign investors can invest and help create jobs. Indonesian children can work in available sectors. John is that your priority . Will you introduce that law before the end of this year . Yes. Priority is labor law. But i have to talk to labor unions. We will also propose 74 laws under the omnibus laws. Licensing can be simplified. Negative investment list will be reviewed to attract investment and provide jobs. John you also have this negative investment list, which you said you would fully open up 25 sectors, such as education. That has not happened yet. Do you have a timetable to open up those sectors, where you can fully buy companies in indonesia . Still in process. We will see the revision in the end of this year. Education will provide room for Foreign Universities to set up universities in special economic zones. Theing hospitals with latest technology will also be allowed. Also in the technology sector, we will provide room. We will see many sectors removed from the negative investment list to create more jobs. John the biggest thing in the Global Economy, which hurts indonesia, hurts the world, is the u. S. China dispute. I suppose that is a dispute in which Southeast Asia have to decide whose side they are on. Loses id field as if you are on whose side do you feel as if you are on . Indonesia is in the middle. We want to get opportunities because the trade war is not good for all countries. But indonesia wants to take opportunities. But the trade war doesnt negatively impact our country. We have good relations with the u. S. And china. The most important thing is our National Interest comes first. Viviana this is bloomberg best. Im viviana hurtado. With review our roundups of top stories in politics, starting with corporate drama involving a surveillance scandal at a major european bank. Suisses coo has resigned in the wake of the spine scandal that rocked finance. But the ceo has been spared. Credit suisse is in full damage control. We heard from the chairman, who presented the entire scandal as a rogue operation by the coo. The two men have now resigned. There is no indication that the ceo knew or improved approved any of this. But he issued a public apology and said this is nothing this should never have happened. He said this is something they simply do not condone. The investigation from Credit Suisse may be over, but the prosecutor said their investigation continues. This is certainly not over. Working to ceo is win back his troops, saying for accountability has been taken. He is responsible. Not looking good, share prices down. Employees are very concerned and angry. Never had 70 people coming out and saying look, this is something fundamentally wrong. He remains to be seen whether they can rebuild trust. I think thats the key issue at this moment, rebuilding trust with its own employees. Path, aber a rocky ipo itsvs asian unit makes trade debut in hong kong. Budweisers asian shares rallied as much as 7 from its ipo price. I guess it looks like going out at the lower end of expectations with your initial price is something that makes investors much happier. Investors today cheering on the listing of budweiser. It was the most actively traded stock in hong kong today. The fact its already profitable may be helping that performance. What better by evaluation, which is perceived to be more reasonable, especially with a carving out of the more mature australian operation, which gives the unit more focus on the faster growing parts of the business. As it stands, based on a multiple of 17 times, budweiser asia is the second most expensive beer name in the world after china. Out, putting its ipo unofficial pause. The executive announced the move in a statement to staff, saying k willassured, wewor become a Public Company, but we can only do it once and we want to do it right. Is it shelved . Thats pretty much right. They are committed. They want to be a Public Company at some point. But that would mean this deal is unlikely to happen in 2019. They will study ipo profits again. What is more important is not only are they not going to raise the ipo, there is a Credit Facility contingent to the success of the ipo. Theres a 6 billion that will get unwound. Apart from redoing the ipo, theres also negotiating with the banks to do in terms of credit line. Anna shares of the biggest brokerages have been pummeled after Charles Schwab announced plans to eliminate some options. Who is hurt the most by this ongoing price competition . Is it just a race to the bottom . Td ameritrade and ameritrade are hurt the most. They both get over 30 of their net revenue from trading. Commissions Charles Schwab is about 8 . So they take it on the chin. Td ameritrade is down the most because they compete against advisors totract their platform. That might make it more difficult for them to attract advisors and their customers assets to their platform because of schwab is zero cost. They have to match it. I expect all brokers to match the zero cost. The treasury and as hsa announced sunday may and freddie mac will be announced allowed to boost their capital to 25 billion to protect against potential losses. This is a key step in the trumpet missed rations push to free the Trump Administrations the trumpee administrations push to free it. As long as it was in place, they would never get their hands on the money that was the massive billions of dollars in profits danny and freddie were making. Its all been required to go to the treasury. Every quarterly profit the Companies Make since 2012, theyve been required to send to the treasury. Hedge funds understand these Companies Need more capital. In their current state, theyre in no position to endure losses. But the hedge funds would like some of the companys profits, argument being were big shareholders. We should be getting the dividends, not the u. S. Government. Aircraft maker boeing unveiling a structure overhaul to deepen focus on safety. In ceo says the playmaker is the endgame of preparing its 737 max 8 to return to the commercial market. I keep hearing this called a safety organization. I dont understand what that means. I dont understand why it didnt already exist. I think thats a fair question. What it means is they are going to take the various aspects of the company charged with Monitoring Product stacy and concentrate them in one place. The safety review boards, the team, the delegates, are going to be there separate organization that reports to the chief engineer for the dedicated airspace safety. To your point, why did this not exist before . I think thats a valid question. Im encouraged boeing is realizing engineering took too much of a backseat. Now you have a direct line from engineers and people on the ground to top management. This is necessary, but perhaps overdue. Choosing a different route to go, airbnb looking to enter the market in 2020 via direct listing versus ipo. Weve heard this song before. We heard it with spotify. We heard it with slack. The arbiter, if you do need to get more money in but need credit. Thats for sure. You can raise money in different ways. Its about a 2 fee to raise money through private markets rather than 7 fee traditional for an ipo. Thats been going down. If you raise money a different for through private, debt, private equity, it could be cheaper than a traditional ipo. Airbnb is worth over 30 billion in private markets. Its quite big. The exchanges, they all want people to start going public earlier. If this is a way to encourage more people to do it, theres a great hope this model can persuade more people to go public. Ceo tesco announced its will step down next summer and will be succeeded by a surprise choice, walgreens boots alliances ken murphy. U. K. Investors love their supermarkets and this is a surprise change at the top. Youre right, absolutely. This is a surprise change. There is speculation lewis would step down because he had been around for five years at the top of the company. He has been instrumental to the turnaround of tesco despite jitters, increase profitability, cut costs, laid off people, extended businesses. There were rumors. But the choice theyre making for the dark horse, a top walgreens boots alliances executive can murphy, is quite surprising. Theres speculation they would get somebody internally to step up to the ceo role. Auto sales posting near record results, but shares are currently falling as investors doubt the market can sustain the record results for much longer. General motors said sales rose, but not as much as expected. Third Quarter Sales fell less than expected. Fiat chrysler fell flat, but did not feed expectations after the concerns by toyota, nissan, the asian producers yesterday. They felt like relief getting the u. S. Manufacturers numbers. Yeah, but its not a real apples to oranges comparison. What they reported was just september sales. This year, september sales did not include the labor day weekend, which is a high selling period. What the detroit automakers reported was a three month p eriod. That included august, which had the wonderful results from labor day weekend. They get an easier marking period than the asian automakers did. Thats all you have this contrast. Tesla slumped in late trading. 97,000 cars delivered looks pretty good. Weber investors disappointed why were investors disappointed . Always amended expectations. They could possibly hit triple digits or 100,000 vehicles. It was a record. It was a good quarter. But they didnt hit the expectation they set for the market. That always makes investors nervous. Youre not watching for any sign there is enough vehicle demand out there to satisfy teslas scores, or if theres not, theyre going to flee the stock. Viviana when you look at factors to watch, this is a great function to monitor. Last month, you can see value topping the leaderboard at 12 , momentum falling 10 . While this hurt most hedge funds, a deep value fund like green light does really well. When you look at a shorter time horizon takes one day, it looks like this reversal has stopped and were back to normal. Viviana about 30,000 functions are on the bloomberg. We love showing you our favorite on Bloomberg Television. Maybe they will become your favorites. As we wrap up this edition of bloomberg best, lets return to one of the weeks top stories. On tuesday, the peoples republic of china marked its 70th anniversary with a millionaire military parade and mass pageantry. At least 100,000 people were involved. President xi jinping spoke at the event. He declared he declared no force can stop the nations price. Heres a look at from now to mao. Mao to now. The 70 years since have seen the nation struggle through extreme poverty to become the worlds secondlargest economy. With a political reach far beyond its borders. In the late 1970s, the reforms resemble chinese characteristics, kick started chinas remarkable Economic Growth. That led to milestones, including a succession to the wto in 2001. And in 2016, the u. N. Joining the elite club of imf global reserve currency. Chinas gdp today is about 90 times bigger than in 1978. The 21st century has been marked by an increasingly assertive china on the world stage, leveraging economic power, building alliances through initiatives like its belt and road program. As the peoples republic turns 70, its dealing with a trade war, a slowing economy, and unprecedented political protests in hong kong. And president xi jinping urged the communist party to embrace the longterm struggles, extending even beyond the 100 year anniversary. Viviana you can find more coverage and analysis at bloomberg. Com, along with the latest news, business, and analysis 24 hours a day. Thats all for bloomberg best this week. Thanks for watching. Im viviana hurtado. This is bloomberg. Sometimes your small screen is your big screen. And with the Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Keep what you watch with you. Download the Xfinity Stream app today and get ready for Xfinity Stream tv week. Watch shows like south park and the walking dead october 7th through 13th. Taylor im taylor riggs in san francisco. This is bloomberg technology. Coming up in the next hour, target 2020. Microsoft says an iranian led Hacking Group targeted the emailed accounts of american president ial candidates. We have the latest. Plus, job