Pelosi said congress had no choice but to pursue impeachment President Trump. At a press conference she was adamant that the actions with ukraine under my National Security by hurting a key ally. Ofwhen we see a violation the constitution, we have no choice but to act. And the evidence is clear that the president the president has used his office for his own personal gain. That with thedded july phone call when the president said the july phone call was perfect, she responded that it was fatally wrong. Asia, the tour of combat urging ties to poverty. The United Nations considering thailand a key trafficking destination as well as a key source of forced labor and sex workers. Twitter says it will start letting users hide specific replies for the tweets they post. The change provides a degree of control that could be used to keep spammers away or hide inappropriate replies. It will be rolled out globally. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more i am markountries, crumpton. This is bloomberg. Live from wimmer World Headquarters in new york, i am vonnie quinn. Welcome to bloomberg markets. We are now joined by our bloomberg audience. Here are updates we are following from around the world. Charles schwab keeps upending the retail brokerage business. Now it is reportedly offering to buy one of the largest competitors. Tos, a 15 billion offer transform the luxury goods market. Ceo alessandra leona in this halfhour. And supply chain surviving the trade war. Our exclusive interview from the Bloomberg NewEconomy Forum. Lets start with what is happening with the markets on this thursday. While we have come off the lows of the session, we are talking about a cooler trading day. Certainly over the last couple of sessions, trade worries have been a central theme with the markets. Coming off a couple triple digit declines for the dow, now looking at the dow off a more modest 13 points. What is interesting, after a strong start to november, could ultimately see the third s p decline in a row, a trend we have not seen for equities going back to august. Generally the momentum has been good. We are largely through earnings season, which gets us to the story of market valuations. Certainly we came through the thirdquarter quarter profit stories being better than expected, so the earnings story holding up. But we generally have seen a positive tone for stocks, so stocks prices rising as well. That is the the and the ee together. Beinglking about their highs of the economic cycle. Vonnie exactly. Reluctant to give up the 3100 mark on the s p 500. I would like to take a look at an intraday of twitter because it focuses in on the brokerages today and other stuff like some of the Semi Conductor stocks and so on. But twitter made the announcement earlier, stocks up for percent on the announcement. Potentially the thinking is that they be there are more users or users will stay on the platform if they are more comfortable that they do not have to hit replies that do not particularly agree with their point of view. Twitter says it will allow you the option of hiding replies, so if you are going to put something out, i wonder what would be the point of not hearing anything back. Push toschwab making a acquire one of its biggest rivals, Td Ameritrade p the company namesake, founder, and chairman Charles Schwab was open to the right deal. Know whether it will be successful in that pursuit, but in the industry you are going to see more consolidation, more firms getting together. You just have to have that scale and volume. We are prepared to do it if the opportunity arises, but if not, we are happy to go it alone. Vonnie for more inside we welcome james safer, who joins us from princeton. What happens next . Should the deal go ahead being that the market thinks it makes sense for both parties . What happens to the likes of e trade and others . James e trade stock has been hit pretty hard today. A lot of people thought e trade was going to potentially be acquired because td american trade is kind of second in line. But should Charles Schwab go after tg ameritrade, it will be hard to compete with them. Things areelt like moving so quickly, Charles Schwab leading that. Tell us what has been happening behind the scenes in the industry. James they definitely lead the charge on the large discount brokerages. If you want to start with robin tradingo has launched with vanguard offered free trading for all etfs on its exchange platforms. Before that, the brokerages had these shortlists of etfs that they could trade for free. All i shares buttocks traded for free with fidelity, than other people came along, most recently in september. Interactive brokers launching Interactive Brokers light, which offered free trading. Everyone had to follow suit because when schwab, the Market Leader cut fees, everyone had to follow suit or are they going to fall behind . Vonnie i didnt mean to interrupt. For some it was more important than others. Some of them were making way more revenue than others. How did that play out . James for example, schwab did not have a hard time going this way because they made from best estimates about 7 of revenue from commission. Someone like tdma trade and e trade that Td Ameritrade and from20 of revenue commissions. Of bloombergfart intelligence with the latest on td potential Charles Schwab ameritrade news. Macy shares macys shows slumping, and this week target pulled out earnings. We had to the critical Holiday Shopping season. Lets bring in ken perkins, who joins us from boston. Anreally feels like execution these days because you have the haves and the havenots. It really is. If you look at the industry as a whole, the consumer is faring well. We have had numerous management indicates that walmart, tosca costco, it is about the ability to generate traffic and execute. We are seeing bifurcation and who is executing and where the consumer is going and where it is not, and it is not for the mall and the Department Store space. It is more to the discount oriented retailers. Ornie is it a price thing, the choice that is in the Department Stores and deke out discount retailers, they obviously target them pretty well. Macys at one point recently seemed to be turning around, and now it has gone back the other way again. Last year all the Department Stores got a bum from the tax cuts and it felt like there was increased moment got a bump on the tax cuts and felt like there was increased momentum. This year they are declining or disloyal rating quarter after quarter. Target is just flooding their stores with new fashionable merchandise at home and apparel, which is up 10 . An anyone to be doing increase in apparel this quarter, the offerings are good, the price points are good. You look at the offprice gdx, 4 top growth. We have not heard from burlington and ross, but they have been doing very well. You have brand names that really have discounted prices, taking share away from Department Stores. Macys, jcpenney across the board. Lets talk about the online side as well. That was a standout for target. What kind of leeway do these retailers have. On for a long time, target was making those investments. Some investors were concerned, but now that it is paying off, everybody is feeling more optimistic. It feels like a balancing act for anyone in traditional retail who has to spend to keep up with amazon. Youre absolutely right. This is another bifurcation. Three years ago when Brian Cornell talked about the it is paying massive dividends right now. Those investing in Logistics Supply chain, the ability to get the products to consumers same day or within one day, they are really generating increased traffic and increased business or the holy grail is sameday delivery. Everybody is moving in that direction. It is a huge cause for retailers. Those who can execute it will be the mentor the winners. Vonnie i want to ask you about carl icahn, because he has chosen to go up against the Department Stores. You have to wonder about timing. Carl icahn has been good in some instances on timing. A lot of investors have been waiting for the shoe to drop on Department Stores. Is now the time . Ken it feels like it. Many say we are toward the end of the economic cycle. Economic growth has been moderating this year but has still been pretty good. Yet the Department Store earnings this quarter have been down 20 . They have been down since the first three quarters of this year. Store closures are materializing. What will happen when the economy goes into downturn . There is a big concern there could be multiple store closures to come. The footprint of some of these Department Store players are very big and probably over stored. It looks like it might be a good time to look at that. We go four we go, in terms of the retail growth story and we have seen this in canada with lululemon it feels like those without traditional ties to the Department Store that are in a position to go direct to consumer and see the kind of growth at some traditional retailers will not see. Is that a trend to be watching for . Ken absolutely. Those are the players, the bigbox base that will go to farewell. We have seen lululemon quarter after quarter knock it out of the park. You look at a player that has a strong position in the beauty space and has done very well. Nike, they have done well with the directtoconsumer. Se are areas the to watch to watch very closely. Vonnie always a pleasure to chat with you. Ken perkins coming to us from boston. Especial 16 billion deal. We will get reactions from tiffanys ceo in an exclusive interview. Stay tuned. This is bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn in new york. Im Jon Erlichman in toronto. Be mh and tiffany are set to enter talks on a 16 billion offer in what could be the biggest acquisition ever in the luxury goods industry. Cohosts carol massar got details moments ago. Ceo alessandro bogliolo. From the luxury summit in new york. Take a listen. O there are many luxury brands. We talk about a handful of them. Actuallyse who have some of them previously successful, consider vuitton, that are super brands, superpowerful. Consider chanel. Honestly, seriously, i dont this is the kind of level of brand that is a magic formula. It could be a problem, could be one way, could be the other. What is crucial is that when you have a brand that has 182 years of history, you at the end of the day have to concentrate on the beautiful product and promises that you made to your customers. This is really the key of success. Arrangement,ncial to be successful, one or the other, what is important . Customers care about your justct, your brand, about an ability sustainability, the beauty of your product. You sayt is interesting that. I think we are in a year where we are so much debating publicprivate markets. Customers are evaluating the pros and cons of staying private. Can you indulge me for a second . A Bloomberg Opinion piece today said, one of our writers said a deal would benefit both sides. Market,ng the jewelry it would automatically give them a huge presence. While tiffany could avoid the tricky task of a turnaround and a u. S. Recession on its own. I wonder about being able to step away, being part of the problem, focusing quarter to quarter. When youre doing renovations on the stores, thinking about the future, you get a report card every three months and it makes it difficult for a publicly held company. Would there be benefits from stepping away from that stoplight from that spotlight . Alessandro reporting every isrter, of course, it checked that you go through every quarter. We take it very seriously. To the benefit of our shareholders. A brand, we have such a history, which means value, to maximize that value, my team, we have to look at the quarter, but we have to look even more at the next three years, the next five years. Want a real challenge, managing a brand with a legacy like tiffanys, because you have, of course, to maximize the profits of your shareholders. But this does not mean that it is just the sum of 10 good quarters. You have to think about the next 10 years. Tiffanyse ceo of there, speaking with carol massar. Now,ny shedding some gains up more than 2 . Hisng up, mike roman says company is not shifting supply chains. Even as trade tensions have reached up in some areas. This is bloomberg. Jon this is bloomberg markets. I am Jon Erlichman in toronto. Vonnie im vonnie quinn in new york. The roman spoke about ongoing trade tensions and their effect on business. Markets, we are viewing our customers, where they are going with their demand, where do they see the changes. There has been a lot of discussion. Do supply chains move as trade negotiations move forward . Will we see customers move production . We have not seen that. We continue to serve our customers in china with their plans here. 70 of our revenue is specified in our customers Building Materials or the processes that they use. That tends to be long cycle demand from them, and that is the same in china. Of the most difficult markets for you was china specifically. What makes it difficult for you to gauge customer demand here . Mike they happen to be important here and it was the automotive industry. We saw a decline in demand. Billed rate of china china specifically declined as we came into 2019. It has been staying soft all year. At the same time, electronics softened as well. Between china, electronics globally, it is about 30 of our revenue that we saw slowing. We had to make adjustments in our plans as we went through the middle and the latter part. Is it particularly difficult to gauge demand in the Chinese Market specifically than any other place on your end . Mike we get very clear demand from our oem customers, and the automobile, making models. The electronic oem, they are very clear about their demand. In between us is a channel and that is something that has to adjust to changes in demand. We saw that in the first half of the year and that added to the decline. The channel took out inventory, so we saw even double digit decline in automotive for a time. Going forward, will you see this demand, especially the automotive part, come back next year . We see inflections first. We see downturns early. We tend to lead out as well. Are economists ask us, what you seeing . Do you see anything changing . As we come through the second half of 2019, it has been pretty steady. As we come out of our Earnings Call in q3, we see q4 much like q3. There is hope and optimism that things will get better, but we have not seen that yet in the marketplace. Vonnie 3m ceo mike roman, speaking with shery ahn. The new Economy Forum has been organized by Bloomberg Media group. The Parent Company of Bloomberg News. Jon it is time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. He has been called one of the most successful traders of his generation now lewis bacon is returning client money from three hedge funds, according to a letter for more capital seized by bloomberg. He will reduce his involvement in trading. Apple is overhauling software. Bloomberg has learned that the it is changing after a swarm iphone andst operating systems. It makes it easier to spot problems earlier. Paypal is making a big acquisition, its biggest ever, spending roughly 4 billion for online coupon site honey science. Use it to find discounts at Online Shopping sites. That is your business flash update. Vonnie a member a number of gtvmberg users can track at go. This is bloomberg. Mark im Mark Crumpton with bloombergs first word news. Testifying on day five of the impeachment inquiry, fiona hill, the former National SecurityCouncil Director for europe and russia, warned lawmakers not to believe what she described as a fictional narrative. She was responding to the allegations that it was ukraine and not russia that interfered in the 2016 president ial election. I ask that you do not promote politically derivative falsehoods. Ukraine plays an Important Role in our National Security and as i told the Committee Last month, i refuse to be part of an effort to legitimize an alternative narrative that ukraine, not russia, attacked america in 2016. Mark phil also testified she raised concerns she had over Rudy Giulianis ukraine actions within security advisor john bolton. Has passed ate fourweek temporary spending bill, sending President Trump the measure to put off a possible government shutdown