It seems it was the outperformance of the small caps. Joe abigail, what are you watching . Abigail s p 500, possibility of new record highs ahead. The chart you have been watching for many, many weeks is starting to turn more bullish than it was last week erie of this years big rally out of the downtrend, and around may with trade concerns around the fed, this range everyone has been talking about making it bullish is the lows, each one is higher. Equidistant highs telling you the sellers are about as confident as they have been before. An rsit together with that appears to be ready to break out to the upside, it suggests that not only are we likely to stay above 3000, but we may have new record highs ahead, there are so many factors to take into account. Well, abigail, i wanted to dive into tech. Some of the big names are really underperforming. Things are only up 20 year to date, as you can see, relative to the others that are up 30 to 40 . Why is this . Miller said the group was underperforming broadly as a whole, getting a lot of scrutiny around next years election. Facebook is a big one as zuckerberg heads to capitol hill with netflix being a big underperformer given the rising competition in the space. I started this off and i want to take a look at the chart in my terminal relative to the Broader Market. This is a similar story that we have been seeing, the things here on my terminal are up 19 relative to the s p 500, up about 20 . They are right on par but still underperforming. In a note this morning they said they do not like this group and expect to have to go outside of them if you want to outperform the Broader Market for the rest of the year. Im taking a look at nickel, which slid after fresh data pointed to threats of economic slowing. In japan it showed that exports continue to drop. So far nickel futures have risen closer to closer to 50 closer to 50 . August it signaled that the shortterm supply tightness is easing. Scarlet . Stilll still scarlet with us is susan schwab and bloombergs Vince Cignarella bloombergs Vince Cignarella. Energy financials making their way to the market, with oil prices struggling, where do you want to be in this market . Susan i think we are seeing a lot of resilience there, it is risk on. Whats important is looking at the data. We have facts to go off of, highly unusual in this market. Listen to what the ceos are saying and how they are projecting their businesses going forward. That is where the actual valuations are coming from. We have this wonderful ability to use that right now. So often we are stuck in the void where we dont hear from the ceos and we are buffeted by trade, brexit, etc. People are feeling comfortable, like report seven good so far and that this should continue. We are seeing that in the markets. What about Forward Guidance versus what we see in the numbers . Susan again, Forward Guidance has been down, stocks have been down, or where Forward Guidance has been ok and things have moved up on that news. Expectations were on the dime side. Downside. Dont forget, we are going to your from a lot of companies. Information is really wrapping up. Carrying that forward, people are feeling pretty good today. Sentiment amongst ceos feels fairly confident. There seems to be resolution on trade or at least they like at the end of the tunnel and that will keep us moving forward. Joe vince, the macro moves we have seen over the last several weeks should be good, but then we have seen all of these idiosyncratic moves. The chilean peso was the worst performing currency in the world with the unrest there. Latin america in general, tensions rising. Its incidents like this, risks like this that seemingly come out of nowhere that make it so fraught. Yeah, last week with the turkish leader was a game changer for the day. When the newsgate comes out. It is what it is. It will be idiosyncratic to individual countries, currencies, and their markets. In general if the trade situation comes off the boil, we have maybe seen the top, temporarily, for the dollar, which will play well for emerging markets going into the rest of the year. I wonder, as we get headlines on we work, does it in at all oneigh sentiments . This is not a great time for any a great market for any company to go public. Susan theres a discrepancy there, i think the companies that are public, its good for them, showing that we have rational valuation. I worry that we have created a bubble in the private equity market with these companies that are so huge waiting to go private. Work, this with we perhaps softbank overstepped based on the valuation now and what they put into it. The Public Market is forcing that valuation back into reality. There isnt a great rainbow ahead. We see the cash flow and it actually pushes more confidence into Public Market valuations and perhaps we have been to negative there. Scarlet it certainly makes them look at companies in a different way. Everyone is fixated on netflix and its ability to grow profit as opposed to its subscriber base. Caroline pushing it to the four side to the side, tesla, netflix, its their own Business Model to a certain extent. Are starting to see that from management teams, thats going on. Cash flow, ultimately, is important to focus on. Its great that its not inverted anymore, but there is still a lot of uncertainty in this. With how this is going to drive cash flow, it supports the underlying equity prices. Vince, the ones that have made it out the door are really ugly. There have been so many ipos. Is this a sign of the end of expansion or is this a sign [no audio] you have to wait till commercial vince its not pretty. Look at beyond me, from meat, from 300 down to 100 or so. Markets are taking stock in what the valuations were, what they should be, and maybe the alternative is to go back to the dogs and we know that actually produce profits and growth. Caroline to be fair, beyond meat rallied from 25. Its a dumb all right. [laughter] look at susan, as we the market once again with the s p 500 closing past 3000, does that unlock some of the concerns that people were worried about . It seemed we had stalled out for so long. Susan right, the Glass Ceiling of the market. It helps to alleviate concerns. Confidence breeds confidence. Leadnk that continues to to confidence in the market again. Cash flows, ceos are coming out with positive comments. It can help lift rings higher. Even though we have the slope of the curve in the right direction , ultimately Interest Rates are so low, if i can find a company with a future of growth for me, thats probably my best place to invest given relative returns elsewhere. Scarlet great conversation. Susan schmidt, head portfolio bloombergsger, and vincent cignarella. That does it for the closing bell and for me, Romaine Bostick is stepping in. [closing bell] stepping in. Global news, 24 hours a day, powered by 2700 journalists and analysts in over 120 countries. Stepping in. This is bloomberg. Caroline we are live from the murderous World Headquarters in new york. How we rallied on this thursday trading on this first day of trading of the week. Joe the question is, whatd you miss . Caroline Boris Johnson denied a second vote on his divorce deal but hes looking to fasttrack parliament. Pushing past the 3000 level, some analysts are busy slashing earnings estimates. Weworhe we wor softbankk work, looking to take control of the company. The House Speaker in the brexit deal. Todays motion is by substance the same as saturdays motion and the house has decided the matter. Todays circumstances are in substance the same as saturdays circumstances. My ruling is therefore that the motion will not be debated today , as it would be repetitive and disorderly to do so. Romaine all right, for more lets bring in our Bloomberg Opinion columnist and senior fellow on foreign relations. Charles, disruptive and disorderly. It looks like johnson had expected to get the vote. Without it, what do you think the timetable is now to get exit across the line . Charles it really depends on what unfolds over the next couple of days. Implementing legislation is under debate. It will be looked at carefully, tomorrow, and the following day. We may get to the point where there is a vote, but the key issue is as the legislation takes shape, people try to put amendments to it. Number one that the u. K. Stay in the Customs Union and number two that there be a referendum on whatever emerges. Those are poison pills for Boris Johnson. He probably wouldnt accept it. Parliament isnt accepting the no deal brexit. Right now its anybodys guess as to how it lays out. Plays out. Caroline i rather like it, i find that brexit has been repetitive and disorderly. John i felt the same thing. [laughter] caroline but the pound is still pretty resilient, this despite this. John yes, that is because the pound has been largely binary since theresa may try to get the deal through. The question is, is very a deal or do we exit without a deal . It looks ever less likely in my view that we exit without a deal. All of these parliamentary maneuvers have been about avoiding that happening and for the currency market, thats a big difference. If we leave with a deal, nothing at all changes the first day after brexit. And if we take the deal, its a cabbage. Joe so whereas before there was a deal, maybe now its deal before october . [no audio] much more mild. John politically this strategy suggest to him that it really matters that he get it through by halloween. For anyone else, i dont get matters much at all. We move on to other huge issues that he to be resolved. Romaine we did get some relative praise from micron , and with the eu seemingly willing to erase the deal, whats the impediment to it adding done . Eu iss i think the exasperated, exhausted, want this over, wants to turn the page and focus on a whole host of issues that in some way are more in urgent than brexit. The key now is whether or not there is consensus in the u. K. Parliament had never been very keen on brexit writ large and definitely not keen on a no deal brexit. The Northern Ireland deal is kind of smoke and mirrors in that it technically stays in the u. K. U. K. July technically renegotiate Foreign Trade deals. The regulations Customs Union and it separates Northern Ireland from the rest of the strange way, putting a border on the irish to. Sea. Received irish we are likely looking at elections soon after october 31. As you have been discussing, at least for now a no deal brexit is simply off the table because parliament has passed legislation that said no way. If there is another election, would you expect hand to be strengthened . To tell. Hard a lot of whats going on now is posturing for the election. Boris johnson said that he would rather die in a ditch then ask for an extension, but he has asked for and expect an exception, even though he did sign it. He wants to deliver this. Didnt sign it. He wants to deliver this. Were it not for the fact that labor is headed by someone who is way, way far to the left, you would think that labor would be all over this and looking forward to the next election. That is simply not the case. Probably Boris Johnson would emerge with a, with a strengthened hand if there was an election as things look today. Caroline john, whats the next thing to look out for question for . John surprises in legislation. Those previous big treaties have needed many weeks of discussion. Y parliament, examination trying to push this one through in three days looks a little irresponsible. As i was saying on a broadcast earlier, there are interesting developments that apparently if you are a Northern Irish company and you want to sell things to the u. K. Sorry, that was a freudian slip, to great britain, you need to fill out an export form, socalled. Suits, nigely seen farage has been tweeting about this merrily saying that now is prepared to give up on Northern Ireland, to split up the country. The fact that Nigel Farages own version would leave a hard order through the middle of the island , thats neither here nor there. But if we find a few more details in this deal they convince people at the moment who are thinking of voting for it to vote against it, thats the next most important question for the next few days. Caroline thank you for your time, john, charles. Softbank is looking to take a controlling stake in wework in a deal. We have the latest. This is bloomberg. Joe more twists and turns for wework. Bloomberg has learned that softbank is looking to take control of the company. We have the latest. Like if it happens that the valuation that we reported deal . Eek, is it a done its not a done deal. The board will be moving from tonight into tomorrow to get this done. There will be debt involved and the jpmorgan financing package is being discussed. It could be expensive for them, not to mention the jpmorgan has competing interests. Existingcan dilute shareholders, including adam neumann, who has a loan out with his share of budget collateral between morgan and the banks. You have tension among the stakeholders. Romaine the tender, i guess that is for the existing shareholders. Is that good . For the existing shareholders, but remember, its much lower than before, some money is better than no money. [laughter] it depends on where you got in at. Caroline notably, softbank is looking to take a majority stake , where as before we did not think that would happen . That is a big deal, as we knew that softbank was the preferred option. Shareholders like softbank and they think that they will give them the time that they need to turn around the company. Right now softbank has no choice but to like them back. [laughter] is, what is the difference between taking money from softbank versus the vision fund . The vision fund is like any other fund, they have a say in how the investment works out. Being able softbank to control how the operation runs. Other things they are reporting there king over from theres a chairman takeover, operational changes. Caroline great to have you here for all the breakdown. We thank you. Its a complex story. Lets get a quick check on the business flash headlines. There has been a settlement in the opioid case in ohio. The largest drug producers agreed to pay 250 million to avoid a trial to four and avoiding the blame for the crisis. Hasformer chief of pimco pled guilty to Money Laundering and collusion charges, accused to geting a middleman his kid into the university of southern california. That is your business flash. Romaine a fourth day of riots in chile. , rocking latin america. Thats coming up next. This is bloomberg. Mark im Mark Crumpton with first word news. President trump has insist that he is pulling american troops out of syria and getting out of what he wills endless wars, his defense secretary says that the u. S. May leave some forces in syria to secure oil fields and make sure that they dont fall into the hands of a resurgent islamic state. Spoke to reporters today during a trip to afghanistan. The troops there are not in the present phase of withdrawal. The present phase involves those border,p along the principally at the [indiscernible] at this point in time. As i said yesterday, the withdrawal will take eats, not the, and until that time forces will remain in the towns located near the oil fields. Mark he emphasized that the proposal to leave a small number of troops in Eastern Syria was intended to give the president what he described as maneuver room and wasnt final. Benjamin netanyahu has ended his that his bid to form a new coalition, pushing the country into new political uncertainty. He fell short of securing a 61 seat parliamentary majority last month. The president gave netanyahu the first opportunity to arm a government. Gantz will now be given a chance to create a government, though he does not appear to have enough support either. Energy secretary rick perry spoke at an energy forum in brussels today to promote Nuclear Energy. The secretary promoted small, as the reactors future of energy. We are reaffirming Nuclear Energy as an indispensable source for the world. Contrary to naysayers, Nuclear Energy is safe. Nuclear energy is clean energy. That is why we launched the Nuclear InnovationClean Energy Future initiative. We call it nice. Nice future. Nice, huh. Mark he said it was a competitive alternative to other countries like the russian federation. Tictoc on twitter, powered by 2700 journalists and analysts in 120 countries, im Mark Crumpton. Caroline canadians are headed to the polls today, set to decide the fate of justin trudeau. With the latest, josh joins us from ottawa. From what i understand of the last few weeks of your room candidate iser particularly well loved. Is turnout going to be significant . Are people going to be turned off by this . Advanced turnout was up, but they changed the rules around so that it was hard to get consent. Higher turnout will be good for trudeau. His progressive base tends to be more undecided when it comes to showing up to the polls. There will be four parties, maybe five with sizable numbers of mps elected here. We dont expect any party to get a majority. The big question will be whether trudeau wins the most seats, who gets ahead of him and who can cooperate. There are a lot of scenarios, but trudeau has the inside track. A change ine were power in canada, what would be the most consequential outcome in terms of policy shift . The first thing he would do is kill the carbon tax. But it would be difficult for Andrew Scheer to take over power. The incumbent its to try to govern, to test parliament. If trudeau has anywhere near the same number of seats, we can expect them to do