Important. Stoxx 600 risk rally beginning to fade. Definitely off of session highs, approaching session lows. Stocks still appear to be relied risk on appear to be largely risk on. Bond markets also not sending that signal. Btps moving lower another two basis points. Different signals coming from different asset classes. The spread is not particularly big, but i think it is worth paying attention to. Vonnie that person i was speaking of is from pimco. Home depot falling after it cut its growth forecast for the rest of the year. Similar story to kohls. Reaction now on whether he thinks the American Consumer is actually going to tip things over here in the u. S. And globally. He is pimcos Global Economic advisor. He joins us from california. Should we be worried about the u. S. Consumer . Guest i think we should be. The consumer is always the last shoe to drop. It has been holding up pretty well. The rest of the economy has slowed sharply. Manufacturing is in recession. Companies have cut hours worked on a yearoveryear basis. Up ins starting to show consumer spending. I think there are good reasons for that. One is that real wages are coming under pressure. Nominal wage growth has not accelerated further. It has actually decelerated recently. At the same time, inflation keeps rising, surreal wage growth has been coming down and the wages are slowing, so i think we are now in the phase where the overall economy will slow as the consumer slows, and we think we have entered what we call a window of weakness for the economy, where the economy goes down to Something Like stall speed, maybe Something Like 1 growth over the turn of this year. Vonnie i do want to point out that the weakness today with home depot has also got to do with the strategic factors, not just about home retailers not doing so well. We will see more from lowes tomorrow and maybe make a better judgment. Even given what you said about a window of weakness, isnt it true that you are looking for moderate recovery as opposed to the economy sliding into something a little more dangerous iesco dangerous . Joachim in the course next year, you will see some moderate recovery. The reason is the fed has cut rates three times, so financial conditions have eased. With the usual time lag, that should have some impact. Also, some of the uncertainties have been a little bit reduced. A hard brexit looks pretty unlikely now. He may get a phase one trade deal between the u. S. And china. All of that should, on the baseline, help some recovery in the economy next year. But that is the story after the next. The next story is that we will continue to see growth momentum going lower as we go into the new year, so i think this will raise new doubts on whether or not there will be a recovery. Another way of saying this is that recession risk, while it has come down a little bit over the last few months, is still elevated. We are still in a late cycle environment, and if the economy is growing at stalwart speed, it doesnt take much to tip you over. Guy good morning. U. S. Treasury 10 year, 1. 79 now. Where do you expect it to go from there, up or down . Joachim that is a much tougher call than it was in august, early september, when we were down at 1. 40 or slightly above that. Back then, it was clear that the market rally had gone too far, there would be some rebounding yields. Now after the rebound, i think we would like to be quite neutral on rates. Basically, we will probably bump sideways. The one thing to keep in mind is that u. S. Treasuries, if something goes wrong, if there is no trade deal, if we go into recession, u. S. Treasuries still have a lot of room to rally. They have much more room to rally than german bonds or japanese bonds. This is why we favor and overweight in u. S. Treasuries versus global bonds. But in terms of outright yield levels at this stage, we are probably in a range. Guy if we dont get a trade deal by the summer 15th, when the next tariffs by december 15, when the next tariffs are meant to go on, does the fed come back on the table . Joachim coming up on if we do not get a trade deal before the end of this year, uncertainties , and i think the fed is back in play. For now, they think theyve done enough. They are setting back and watching and want to see the impact of the three rate cuts. As we go into the first half of next year, you will probably see andfed being back in play, i think it is more likely than not that we get further easing. That it turns out that the fed has not done enough and needs to do more. Vonnie what are the socalled swing factors that you speak of . The first onenk is obviously still trade. How does this trade deal come along . Do we get a fade one do we get a phase one trade deal . Related to that, if the Global Economy is the Global Economic factor turning, there are some early signs for that in china and in europe. Things have not deteriorated further, actually picked up a bit. So i think the trade issue is the key issue. Thesecond issue, i think second swing factor, is fiscal policy. Monetary policy has done a lot already around the world. Fiscal policy could become a positive swing factor, particularly in europe. Or fiscal to see expansion, which does not look very likely right now, but if we were to see that, that would be very powerful. That could lift the economy, and fiscal policy. Then we could be in a totally different scenario. Again, not our base case, but that is clearly the thing to watch on the upside. Break and was to some breaking news on aramco. Toarently, aramco is said see nearly enough early orders to pull off an ipo. Sources indicate the deal is almost covered after three days. Is seeing, aramco nearly enough early orders to pull off the idea. Let me just get your reaction. Obviously you are not going to talk about aramco or the ipo, but when you see headlines like that, this massive deal that was going to be brought to International Markets and is now staying domestic, do you draw any conclusions about the Global Economy or the financial and Capital Markets from that . Joachim i think it is very difficult to make a read across from this particular situation to the Global Economy. I think whats generally happening is that many investors are becoming a little bit more cautious on carbon related investment, so that may have played a role. , think this is why that sector the oil sector, is viewed a little bit differently than it was a few years back. Otherwise, i think it is very difficult to make any read across from this particular situation to the Global Economy. Financial markets generally have been doing well. Equity markets have been doing well over the past few months, powered by liquidity. Anhink this is more about idiosyncratic situation. Vonnie thank you for that. A lot more to come with a lot more to come with joachim fels. Here was first word news is ritika gupta. Kailey this morning, ritika this morning, the House Intelligence Committee is itnesses. Ng two w from anl will also hear advisor in Vice President mike pences office who was on the call. The u. S. Walked out of military talks with south korea today. Some balked at president trumps demand that it pay five times more for having u. S. Troops stationed there. That raises questions about stability with one of americas closest alliances. In hong kong, chief executive carrie lam has called for a peaceful resolution to a university siege. The standoff between police and antigovernment protesters raised fears of a bloody crackdown. Demonstratorse escaped or were evacuated overnight. About 100 remain on campus. Newhome construction in the u. S. Is on a roll. Single family starts registered the strongest pace since the beginning of the year. The number of permits issued was at the highest level since 2007. That is a sign homebuilding will 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. Im rick koop to. Im ritika gupta. This is bloomberg. Guy the risk rally beginning to fade a bit. We started on record highs, now below the red line. Retail certainly acting as a bit of a break [no audio] guy this is bloomberg. London, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Lets check those markets with Abigail Doolittle. Abigail very small moves for stocks around the world, but a slight risk off tone. We do have another day of fresh record highs for the u. S. Major averages. You can see the s p 500 at this point fractionally lower. The stoxx 600 in europe slightly higher, where we have a bigger slightly higher. Where we have a bigger selloff, take a look at brent crude. Some fears around a economy perhaps slowing. Havingudi aramco deal trouble, making it all the more risk off. We have haven bonds once again rallying. There we do have a big rally of outperformance, not helping at this point, the hang seng in hong kong. In the asian session, we had after the Day Hong Kong index had its worst week last week since august, despite the continued protest. This index is on pace for its best day, two days, i should say, and more than a month. In the u. S. , the big story of retail is the consumer falling apart. Take a look at some of the worst drags on the s p 500. Kohls on pace for its worst day in two years. Outlook for the second time this year. Considering the results out of home depot and lowes, home depot also had a bit of a Third Quarter miss. They cut the outlook for the second time in three months. Again, concerns about the u. S. Consumer and whether or not that is perhaps falling apart. Guy it is worth thing attention to. Thank you very much indeed. Imf manager says the economy will see a modest upswing in 2020, but she is far from saying it is out of the woods. She spoke to matt miller in berlin. Theres quite a heavy cloud of uncertainty hanging over the world economy. The more that can be done to reduce uncertainty, especially trade tensions, to hopefully move from trade truths to trade piece from trade truce to trade peace, sustainable. All of the tools at their disposal to boost the chance of upswing, what we are recommending is, if you have Monetary Policy space, use it. Guy do you have Monetary Policy space . Thats one of the Big Questions banks are asking them selves. Fels, pimco Global Economic advisor, is still with us. Our Central Banks nearly done . There are some differences here, but are they reaching the limits of what is possible . Joachim yes, i think Central Banks are reaching the limits. They are not quite at the limit yet, but they are getting there. The fed obviously got closer to the limit by Cutting Three times. The fed still has 150 basis points of rate cuts that it could do, unless it wants to go negative, which i think they wont want to do. The fed still has some space. The fed can obviously expand its Balance Sheet again only by buying tbills, which is what they are doing now to alleviate money market pressure, but by bonds. Longer elongated the fed still has space, but obviously a lot less than they had in previous recessions. If a recession comes along, Monetary Policy will become strained. It will even more become strained in europe and in japan, where we are really almost at the limit. Again, that raises the point that fiscal policy will really have to step up in that next downturn. Either it does or not is an open question because fiscal policy is often dominated by politics. Guy that question was the set up this question. If that is the case, that Monetary Policy is nearly done and fiscal policy is going to have to step in, is the 30 year bond market bull run at its end, or near its end . I am not so sure. It is easy to say yields are so low, they can only go up from here, but i think weve learned quite something in the past few years. First of all, weve learned that bond yields can actually go negative. They have gone negative in europe. They have gone negative and japan. I would argue in the next recession, if and when the fed cuts rates to zero, we may well see treasury yields approaching zero or even negative levels. Early to calloo the end of the global bond bull run. Obviously it gets more difficult for bonds to rally from these levels. Global excesse is of desired saving overinvestment. For safehuge demand assets around the world. Risk assets fairly extended. If we get the next downturn in markets, whether or not that is coupled with a recession, but if we get that next downdraft, say in equities, as we did in the Fourth Quarter of last year, there is still a lot of room for bonds to rally, particularly in the u. S. Vonnie where does it all fall apart, or does it even fall apart . Joachim it doesnt necessarily fall apart, but i think we are heading into an extremely uncertain period where you could see major disruptions from a range of secular factors. I think the end game, if that is what you are asking come of the end game is probably that once Monetary Policy is really exhausted and we are really not managing to get out of that next recession, i think that is when fiscal policy will step up in a big way. I think that could be the time when inflation finally starts to rise because fiscal policy is a much more direct tool to influence demand and inflation then Monetary Policy. Is that we end game use all of the remaining tools of Monetary Policy, but in the end, fiscal policy will step up. It is probably still a few years away. Vonnie what does that look like in the Different Administration scenarios . Does there need to be a change in administration for effective fiscal policy, or could there be effective this go policy no matter whos in the white house and in congress . Joachim i think who is in the white house and the congress will matter for the kind of fiscal expansion we get, but im pretty sure that if we end up in a recession again at some stage over the next few years, you will see more fiscal action no matter precisely who sits in the white house or who dominates congress. Of course, the form of fiscal stimulus will likely be different. Well have a democratically the democrat government, then you will probably see more spending. If you have the republicans in government or a republican in government, you will probably see more tax cuts. In any case, i think you will see more fiscal. Andrew assange the other day that he is basically avoiding kilts like the plague andrew was saying the other day that he is basically avoiding gilts like the plague. Joachim i think gilts could be good value if something goes wrong and we get the hard brexit, but that probability is much reduced. I think, almost irrespective of who wins that election on december 12, youre likely to get more expansion in fiscal policy. That is the main region by would like to be underweight in gilts. We are not avoiding them. We like to be underweight in our global portfolios. We think yields have much more potential to rise then yields elsewhere. Again, the reason is that in the austerity,hift from which was shift over the last five to seven years, two fiscal expansion, is very likely to happen very soon. Have beenbreakevens dropping like a stone recently. Do you think that carries on . Using the pound has more potential on the upside . Joachim theyve come down. One reason for that is that if you have this uncertainty about brexit, which is what weve had for quite some time, that usually benefits nominal bonds more than inflation linked bonds, so almost technically, you get that compression of the breakevens. Thatther factor is sterling had been rising as the risk of a hard was being priced. Ut that was putting pressure on inflation excitations. I and large, we think inflation will be stuck around the 2 target in the foreseeable future, at least if we get a , if we get a deal. Dont think there is a big trade here and one are the other direction in breakevens. Guy thank you for spending time with us. We always appreciate it. This is bloomberg. Vonnie lets get a check on u. S. Markets now. Major indices grinding lower since the open on most an hour ago. The s pis down 0. 2 , down about a point and a half. Broadcom one of the better performers in todays market. If you look at some of the retailers, you will see that kohls is the worst performer. 5 drop for home depot, but that is not just the consumer story. That is also tied to timing of returns on strategic investments, according to jeffries. This is bloomberg. When it comes to using data, everyone is different. Which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets get an update on the first word news with ritika gupta. Workers in newl york reportedly arrested over the suicide of disgraced financier jeffrey epstein. They face federal charges related to their alleged failure to check on him. Epstein hanged himself in his rating t a whilst awaiting charges for sex trafficking. Rape charges against julie massons have been dropped. Assange havelian been dropped. The u. S. Senate is on the verge of passing a bill to support the hong kong protesters. The measure has been met by silence from president trump. Hes yet to indicate whether he would sign legislation. Has joinedate california ensuing juul california in suing juul for allegedly targeting teenagers in advertising. No comment yet from juul. In response to the california suit, the company said it is committed to work with authorities to find underage use of its products. 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. Im ritika gupta. This is bloomberg. Vonnie thank you. Lets get back to retail. Shares of home depot down about 5 after the retail giant missed q3 sales and retuned its annual growth outlook. Kohls also falling, down almost 18 . Tjx reporting results well above guidance. What does it say about the health of the u. S. Consumer . Here with us is bloombergs matt townsend. Type ofy, kohls is one story. It is a department store. It is consumers walking in and buying things. Home depot is a very different story. Matt home depot has been an out performer for years in the retail space. We talk about the retail apocalypse. That is not an issue with home depot until this year. We are seeing the Third Straight quarter theyve missed on sales and cut their sales guidance. Is this a change in Consumer Behavior . Is there some softness in the home renovation market, which could be very bad for home depot and a bunch of other retailers . ,uy the correlation between like a chart we can show here, home depot and Housing Starts is really tight. We didnt see it in the data today. If there is any sign the Housing Market is going to rule over, presumably home depot would feel it. With the Mortgage Market as good as it is at the moment, this trend is just going to continue. That has macro stock tailwinds, and just management miss aligning itself at the moment . What is the macro backdrop . Matt exactly, the macro backdrop remains strong. Executives were asked about softness in any part of the business. They basically said we still see a strong and stable Housing Market. It was brought up that maybe theres some more growth coming for them because, like you said, Housing Starts are good. Home starts were pretty robust and the Third Quarter. In this low rate environment, thats probably going to continue. Vonnie but it is very difficult to tease out on the strands tease out all the strands. Home depot does well when there are not new homes, and they like to renovate the homes they have. So it is difficult to do because and correlation on all of this. Lets move to the other retailers, like kohls, for example. How come kohls did so badly, but tjx didnt . Matthew Department Stores are very broadly struggling. Behavior,in consumer or things just sort of multiply with the partner stores. Tjx is a discounter, a value play. It is a place that people want to actually go to the store because they call treasure hunt. They can find things. It is a different sort of story with tjx than a parser like kohls. Vonnie vonnie we will continue , speaking withon warby parkers founder. One of them, at least. That is coming up. Our thanks to bloombergs matt townsend. Again, we will speak with warby gilboa about dave their push into direct to consumer. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. The company often credited with creating the direct to consumer phenomenon, warby parker, now announcing it wants to go direct to cornea with scout, a line of daily contact lenses. Joining us is the warby parker coceo and cofounder dave gilboa. How on earth do you make this happen when people need very special, personalized contact lenses . It sound like it would be a lot scout. Than just about 40 of our glasses customers wear contacts on a regular basis. We spent the last 18 months really exploring every type of contact lens material, every type of design before we settled on the product we are introducing, which is scout by where we parker by warby parker, in a really innovative flat pack design that produces 80 less waste than traditional is muchpackaging, and more hygienic because the lens is always the correct orientation when you open it up. This is a three month supply, which is much smaller than traditional contact lenses. Vonnie contacts require regulatory oversight. It is the same body that regulates pregnancy kits, for example, and other types of very personal things that we do to our body. Self testing, if you like. How do you get around that . Dave we had a great manufacturing partner that has decades of experience producing contact lenses, and this is immaterial that is fda approved that we feel really comfortable the comfort, of breathability, moisture, from a usability perspective, but also passes all the rigorous Safety Standards from the fda and from our own standards as well. Guy good morning. Guy in london. I wear glasses and contact lenses. I have a very different experience with both of them. The margin, i suspect, is very different on one then the other. Which has the best margin . Dave there tend to be higher markups on glasses then contact lenses, which is why, even though our glasses are a fraction of the price of traditional glasses, we are still able to have really high Gross Margins on our product. We are super excited to be able to introduce a daily contact lens at a much better price point then you can find elsewhere in the market. It is really the first opportunity for contact lens wearers that have been wearing extended where extended wear lenses to enter into an affordable daily contact lens. Guy using people are as pricesensitive to something they stick in their eye rather than over their eyes . They want the highest quality product. How different is that for your relationship with the consumer as you embark on this versus the glasses experience . Dave absolutely. Even though price is important to consumers across all products, we think that for contact lenses especially, the comfort and breathability and an area where no one wants to take any shortcuts. We are working directly with our own doctors. We have dozens of optometrists on staff where our customers can go in, get their contact lens fittings, try scout. If people want to go to their own doctor, we have an easy mechanism to send trial tax so so thattrial packs doctors and patients can become comfortable before using the lenses. Vonnie at the very beginning when you guys got in, youve established yourself as a very transformational player, but there are others trying to take some of your market share and maybe even overtake you at some point. What do you have to keep the likes of amber i wear out of your space . Dave the biggest thing is we really just focus on offering the best product and services to our customers. We view our customers as our best marketing channel. We have a Net Promoter Score in the 80s, so we are really serving our customers well. , i think, turns into a big mode, as well as the presence we have now with over 100 Stores Across the country. We have dozens of optometrists on staff. We tried to make the shopping process as easy as possible, whether that is online or offline, and whether people are buying glasses or contacts from us. Almost 300 million in financing, from everyone from t. Rowe price to first round capital. When you going to go public . Yesterday we had the kylie jenner news. You are valued now at Something Like 1. 75 billion. Dave right now we have no plans to grow public. We are profitable, with plenty of cash on the Balance Sheet, and not constrained from an investment perspective. We are really focusing on customers and focused on bringing Innovative New docs to the market like our scout contact lenses. Vonnie you will be back when youre ready to tell us more about the ipo process. That is dave gilboa, warby parker cofounder and coceo. Guy Abigail Doolittle is here. Dayail today is a big about the u. S. Consumer and the weakness that we seen through kohls and home depot, with those retailers cutting the outlook, but cisco might actually be the early canary in the coal mine, if you will. We have shares of cisco over the last several months falling very quickly into a bear market. It is really pretty remarkable. The reason there is a tie into the consumer, last week when they reported, they missed. They cut the Sales Outlook by far more than expected, by 7 . They blames the slowing Global Economy. But they were two areas that were especially weak. The Enterprise Business they cut by 3 to 5 , not great because cisco is a need to have instead of like to have, so that speaks smaller i. T. Budget. Enterprises that depend on the consumers, again, and early tell on the idea that the consumer is weakening. The reason this matters even more, if we go back into the past, in just 2007 was a similar situation where cisco cut earlier than some of the other areanies in 2008, so some thinking this is a similar situation, that ciscos last two quarters of weakness are an early tell of weakness overall, but especially for the consumer. Guy great stuff. Thank you very much indeed. Abigail doolittle with our stock of the hour, cisco. Securities and Exchange Commission chairman James Clayton spoke with balance of power anchor david westin on a number of issues, including whether u. S. Investors can feel confident about investing in chinese companies. We have a great system. Every system has flaws. Every system has bad actors. We are trying to eliminate the flaws, get rid of the bad actors. But on a comparative basis to other countries and how they regulate their Capital Markets, far superior, far more investor protection, far more transparency. Some may say i am too much waving the flag, but thats true. Investors should recognize that. As you go to other markets, you do not have the same protections that you have here in the u. S. So i want people to understand that. It doesnt mean we should foreclose those opportunities because theres clearly gross in places outside the United States. Theres clearly good investment opportunities. But investing overseas is different from investing in the u. S. Things thatf protest one of the things that protect investors is the 10 b five. The set apply to a Chinese Company . Theres a big difference between what the law says you can do and what you can do in practice. Here we have a system built up over time that, if somebody commits fraud, there is a way to get redress. If a company commits fraud, we would bring an action. Other regulators bring an action. Look across the spectrum and see the extent to which that happens outside the United States. Its less. Even if the law says the same thing, what actually happens in practice . Manage people who companies in the United States know people are watching, and that is important. They should know people are watching. David one of the things you and the sec have gotten a lot of attention for is new proposed regulation on proxy advice, as well as proposed regulation on shareholder initiatives. How would the proposal on the proxy advice differ from what current law is . Let me speak broadly because this is a proposal out there. The shareholder engagement arena is very important. Like i said, managers should know their shareholders are watching. They should know their shareholders are going to hold them accountable for the decisions they make. That is an important part of our system. But that system needs in itself to be transparent. It needs to be accurate. What we are looking to do is modernize our rules around the proxy process to ensure that people who are, for example, noant on proxy advisors windows proxy advisors have conflicts. Whether the information they are putting out is accurate. It is a proposal. We welcome comment. These rules have not been updated for a long time. Our markets have changed traumatically. With had a shift from direct investment to investment through funds. We had a shift to proxy advisors , giving a lot of advice to people who manage funds and others. We want to hear from people. How can we improve and modernize the system . Guy you can hear more of that interview, fcc chairman jay clayton, coming up on balance of power at 12 00 p. M. Eastern time. This is bloomberg. Guy this is bloomberg markets. Lets turn to the Telecom Sector and a key issue facing u. S. Companies, the upcoming auction on the spectrum by sec, which is critical for 5g develop it. For 5g development. 5g, we are just talking about radio waves. Wireless Technology Works just like a walkietalkie. The American People owned those radio waves and the right to send them. It doesnt belong to the telecommunications companies. Theres a band of spectrum, radio waves, that are perfect for 5g. Right now they are being used free of charge by some large Satellite Companies. Those foreign Satellite Companies went to the fcc, even though they dont own the radio waves, and said we want you to give us the radio waves, and we are going to decide who among the american Telecommunication Companies get to use them, and they are going to pay us about 60 billion. At one point was really singing about doing it, and it was being pushed, this whole idea of giving away the radio waves, very valuable, that belong to the emerging people, was being pushed by some swamp creatures in government who were trying to help some of the telecommunications. I am not going to name specifically. I may have to at one point, but they were going to the plan was to give these radio waves to two Luxembourg Companies and one canadian company. They would decide that they would auction them off themselves and get to keep the 60 billion, and we would have no control. What if they auction them off to china . I know it sounds ridiculous, but the fcc was seriously considering it. Ive been fighting it. I went to see the president and chairman by at the fcc and chairman pai at the fcc. They are going to do a public auction of these radio waves and just let all American Companies bid. It will be the best thing that ever happened to our 5g effort, and its going to been about 60 billion for taxpayers, some of which we can use to help rural folks connect. Kevin you are aligned with chairman pai. Sen. Cassidy absolutely, desks dy . Cassidy sen. Kenne absolutely, but this one was close. Some powerful people in government were going to just give away a 60 billion asset, and i raised fresh hell, and some of my friends in the house did, too. Thanks to the president and chairman pai, we turned it around. Guy john kennedy speaking to our washington correspondent kevin cirilli. Vonnie lets get the latest Bloomberg Business flash now, a look at some of the biggest business stories in the news. Alibabas 13 billion hong kong share sale is proving wildly popular, according to dow jones. The offering is already multiple times subscribed. They will start selling early, and an hour from now, in fact. Tata steel will cut operations. Blamesbaibased company overcapacity and trade wars. Tata has steel mills in the u. K. And the netherlands. Management unit is on a hiring spree in the u. S. , almost tripling that of last year. The worlds biggest banks are competing to hire or retain advisors who can win business from richer clients. That is your latest Bloomberg Business flash. Coming up on the european close, insights on the market from charles dumas, chief economist at ts lombard. Checking markets now, we are continuing to drop in the u. S. The dow is down 0. 4 , the s p down 0. 25 . It is lowered by coals, now down by kohls, now down about 18 . Macys is down 11 , l brands down 5 . It is a bloodbath today for Department Stores. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of Wireless Network, designed to save you money. Switch and save up to 400 a year. And now get 250 off google pixel 4 during Xfinity Mobile beyond black friday. Thats simple. Easy. Awesome. Click, call or visit a store today. Guy buyer beware. Hls under and ko the weather. It is the consumer to blame . Is the market worried about 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, im 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. Kohls down 17 , the worst of them. Macys and many of the others are also experiencing pretty major losses today. Broadcom is up 2