Years end after more than 30 years with the chicago pd. All eyes will be on china and madrid. Almost 200 countries will be there for the United Nations climate talks. China is in focus for several reasons as the largest investor of Renewable Power but also the worlds top carbon polluter. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. China is im Mark Crumpton. This is bloomberg. It is 1 00 in new york, 6 00 in london, 2 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories we are following on the bloomberg and around the world. Checking the pulse of americas factories, manufacturers feeling the pain as ism data contracts for the fourth straight month. U. S. Stocks in the red. The s p 500 heading for its biggest drop in two months, as President Trump says he is resuming steel and aluminum on brazil and argentina. On brazil and argentina. Avoiding cyber monday snafus. Amazon gears up with a new storage plan. All that and a lot more in the next 30 minutes. Abigail doolittle is with us halfway into a bleak trading day. Least, for stocks at and bonds. Interesting to see that we have stocks and bonds down on a day relative to the major averages. A number of factors going on, including President Trump reimpose in steel tariffs on brazil and argentina. The president also talking about the idea that the u. S. Will increase tariffs on china if a trade deal is not reached. Stocks on pace for the worst day in almost two months. But as this is happening, haven bonds trading lower. An interesting relationship there. The two weeks prior to today, bonds have been rallying. Relative to that ism manufacturing data, 48. 1, missing the estimate of 49. 2. Four down months in a row, the 50 goingtreak below back to 2015, 2016. The lowest, longest period of time going back to the financial crisis. This helped to explain why stocks are tumbling. A prolonged manufacturing slump could take a chunk out of the economy. That is why stocks are lower on the day. Areas with underperformance related to trade, possibility that a phase one trade deal will not be coming out anytime soon. President trumps tweet threatening tariffs. Re down 1. 4 , bank of america cutting those shares, citing a challenging outlook for the agricultural area. Finally, the worst sector on the day, technology. Especially sensitive to any trade war headlines that are either positive or negative, considering the Revenue Streams are deeply embedded in china, as well as the supply chains. A bit of a down day for stocks, but or bonds, too. Interesting to see how that will play out. Vonnie thank you. We welcome our markets live blog editor. Are these drops oriented wa rranted . There is enough bad news around that a pullback is warranted. We have had pretty much and a broken of gains for equities. Small gains, every day has been a little more. Now we have reached this point where we are at record highs on friday. The trade news this morning, ism disappointment in thesmall u. S. , enough to push a slower. The interesting thing on the day, technology is by far the worst group. Interestingly, also the best group year to date, so a couple of things going on here. One would be trade. Technology stocks would be most affected by that perhaps. The other thing going on his rotation. Energy stocks are up on a day, they bet sector, so there is some movement from the best to the worst. Small and midcap stocks continue to outperform the s p, so perhaps we are seeing some rotation from large caps into a smaller names today. Vonnie we should mention the s p has rallied 25 year to date, 33 from the lows of the previous december. Are we just seeing some selling heading into the end of the year now . We have a couple of large things coming up ahead of us, the december 15 tariff deadline. Not a hard deadline, but mr. Trump said he would impose higher tariffs on china in there is no deal. We have the u. K. Election, quite a bit of uncertainty there. Perhaps people are worried about a Hung Parliament which has come back into our vocabulary as of late, and what that may do to the political situation not only affects k, but how that europe broadly. Ms. Lagarde was out today talking about fiscal stimulus, getting those economies to spend more. It is still not clear that that will happen because we now have a political dilemma in germany. The good news is japan will be rolling out ams. Lagarde ¥10 trn stimulus package, and china continues to cut rates, make other regulatory moves to boost their economy. So we have offsetting things going on. Trade is the biggest one but not only one that markets have to face as we count down to the end of the year. Vonnie make sense for us the bond market moves. We are off our highs in terms of the 10year yield, still at 1. 824. It sold off overnight on the good ism data we got around the world, set here in the u. S. R wasestingly, the twoyea following the 10year, but that it recouped that loss, and now we have this wider gap between the 2s and 10s. Now you are seeing perhaps a the fed will move earlier. If you look at our prediction, it is now november when the fed may have another full comment interest rates, as opposed to november december. The fed will move earlier. The twoyear would reflect some of that. The 10year is reflecting better data on the world stage. If that is the case, we will have stronger growth, and perhapsthe twoyear would reflee of that. Reduce the alarm of 10year inflation not just in the u. S. But globally, and that mayyields at 1. 80. If you compare that to the still a large cap, but we have to wrestle with the idea that the Global Economy has bottomed out and is beginning to come back up. Thank you for that. That was andrew cinko in princeton. President trump will be down in london before 6 00 eastern for a meeting of nature and country leaders. It is their seventh anniversary. It thank you for that. Is the groups 70th anniversary. Is the groups 70th anniversary. Bill faries joins us from washington, d. C. For the latest. What would be the objective of nato leaders . One of their primary objectives is just to get through the next few days without a disaster. It is a pretty fraught time for nato right now. President trump has always been critical of the alliance, since the vast majority of the members spendo do not pay 2 2 of their gdp on defense spending, which he wants. Now you have a fight brewing between the french president , emmanuel macron, and turkish president erdogan, over where the alliance is at, whether it has the right focus, what it should be doing. You have the u. K. Prime minister, who would probably just like to get through the next couple of days looking strong as he heads into an election at the end of next week. Also avoiding any kind of mishaps. A lot of leaders will probably be arriving tonight or tomorrow morning and looking at their watches on monday can head back home. Vonnie sounds very productive. Obviously, the president is alienating nato member countries. Macron is looking for a European Defense mechanism, army. Is there a path to that, would President Trump be ok with the military in europe, a European Military without americans . Bill President Trump would like to see european nation spending more on defense, but theres a lot of concern at the pentagon and even the white house about europeans setting up some sort of parallel defense mechanism that would run alongside nato. Nato is seen as the glue that has held the u. S. And europe together over the decades. I think most observers would say is at a particularly dysfunctional stage right now. People who follow the defense matters in europe say coming up with another mechanism, European Initiative may not be the way to go, if your primary concern is strengthening nato for the future. Vonnie even talks about a market for weapons procurement. Im curious, with her every be a situation where market for weaps france, germany, for example, could team up . Bill it is hard to see that right now. Mission is to help defend the continent, alliance from russia. Viewsou look at european of russia over the past several years, with the interference in elections in a number of countries, with the poisoning of the u. K. , i in think russia is looked at very skeptically at this point. But there is a sense from ench,cularly the fr Mission Needs to be rethought, other things to focus on beyond russia. Vonnie that is bloombergs bill faries from washington. Coming up, cyber monday without the blunders. Amazons game plan for one of the busiest shopping days of the year. We go to seattle for the details. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. Americans got out their wallets over the holiday weekend, spending nearly 70 billion over the orday period. Kailey leinz has a closer look. Kailey it was quite the weekend, and that was true online and in stores. Take a look at brickandmortar retail, which fared well. Sales were higher with spending blackres up 4. 2 on friday. Average ticket price is up 30 . We saw a lot in electronics. Average ticket prices were up 483 average ticket price is up. From your average friday. Of course, we know online is the big story this year. Black friday online sales hitting a record at 7. 4 billion. That was nearly 20 from 2018. Interestingly, nearly 3 billion of those dollars were spent on smartphones. Today is cyber monday and we expect another record. Americans expected to spend nine this cyberion on monday. That would be a gain of 19 . As far this cyber monday. As Retail Stores are faring in all of this, in the holiday period, they usually tend to outperform the broader market. That was true last week, and is performance4 on during thanksgiving week. As Retail Stores are faring in all ofbut they tend tt performance going into the year end. See its a strong cyber monday shown will be enough to live to retailers going into yearend. Vonnie kailey leinz, thank you. For a deeper dive in how the ecommerce giant is handling this cyber monday, lets go to seattle. What is the new, big old idea . Cheap Warehouse Space. Everyone thinks about amazon and these highly automated facilities they have built around the country with robots, conveyor belts. This year, they are experimenting with simply cheap Warehouse Space in southern california, trying it for the first time this year, looking to potentially expand it to locations in future years. They have this expensive network that they have created. They cannot waste it on storage, but they still need inventory close by. So they are trying to supplement this network of automated facilities they have created around the country. They need to supplement it with cheap Storage Space close by so they can constantly move inventory through the operation and have it close by as those are running low. It is an interestingthey need th cheap Storage Development for a company known for automation. Vonnie the irony is not lost on us, critics are intensifying their protests on a day like today, labor, environmental, digital protests going on around the world. Evenmazon symposium eas going on in brussels and talk about workers rights. Has notzon doing had as much access to and its older facilities were already its record is not sterling . The facilities where they are oldg simply storage is more school, light touch warehousing where they are simply storing pallets of inventory, just having them at the ready to bring into the new facility. Where they are simply it will not be nearly as laborintensive as the facilities they are more known for. They have taken heat recently there was an investigative report indicating that amazons injury rate is actually higher than the warehouse average. Their response to that isit wils that they are actually trying to be deliberate in overreporting injuries. Even the slightest thing they are reporting it. A few years ago, they got in trouble with federal regulators about not reporting enough injuries. Their explanation now is they have overcorrected on that, and they are deliberate in overrepog reporting every little thing, which is pushing the injury rate higher vonnie compared to previous years. Spencer soper, great reporting from amazon. Vaping related illnesses and deaths are on the rise. How the u. S. Can tackle regulation, and what goes in the ecigarettes . We find out next. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. Are taking thees regulation of ecigarettes into their own hands. Massachusetts is banning menthol and Tobacco Products and hiking the ecigarette tax. New york city is banning flavored products. This comes after donald trump reversed an earlier promise to ban flavored vaping products. Joining us from baltimore is dr. Director of Global Tobacco controls at the Johns Hopkins school of Public Health. So many components go into ecigarettes in the various brands. Should thoses likely to pick up a product be asking themselves . The most important thing is that ecigarettes are not safe. The only people who should be using ecigarettes are those trying to quit smoking cigarettes. Is not a harmless product. Kids should not be using these products, as well as is not a hs product. Adults who are not using any other Tobacco Products. Vonnie tell us about the kinds of components we should be thinking about. It is not just a question of oil getting heated up. Adults who are not using any other Tobacco Products. Various brands have Different Things inside their products. There is a Vegetable Glycerin and propofol water solution which are alcoholwater solutions, and in that, manufacturers often for nicotine and flavors in as well. We have to think about a couple of things. One is the nicotine delivery the user gets from the ecigarette. That is a function of how much nicotine is put into the solution, as well as the formulation of the nicotine. And we have to think about the flavors, too. The flavors are really attractive to kids. We have seen the vast majority of these kids using ecigarettes are using flavored ecigarettes. Vonnie there is talk about them being away of quitting smoking, how much do we know about these products being a gateway themselves to Nicotine Products . We are still learning more and more, we need additional studies. Inortunately, ecigarettes this country have become a Public Health disaster. When the ecigarettes first came onto the market, the high hope was it would be an offering or cigarette smokers. Instead, they have been an onramp to nicotine addiction for our nations kids. Us why thelain to fda is allowing the sale of these products, allowed it at the beginning, given there is so little we know about them, and their effects. Joanna the fda tried to regulate these products as soon as they came onto the market, tried to regulate them as Smoking Cessation devices. That was the promise of ecigarettes, to help cigarette smokers quit smoking. They did not sued, want to be regulated as Smoking Cessation devices. Instead, they wanted to be regulated like Tobacco Products. Deemok time for the fda to products, to regulate them, and now they are working proposals on how to best protect the Public Health. Vonnie europe seems to be doing a better job regulating these products. How would we do that . Joanna right. The european proposals on how tt protect the Public Health. Vonnie union has a number of regulations on ecigarettes, including giving a limit on the nicotine concentration allowed in the ecigarettes. But we have to be careful about just trying to push the balloon in one spot and not have another piece of the balloon expands. There are a number of factors in ecigarettes that control the delivery of nicotine to the user. One of them is the concentration of the nicotine. But the voltage, for example, in the product also contributes to how much nicotine a user gets. You could have a liquid with a concentration that is allowable in the European Union, but ramp up the voltage, and the user will get higher levels of nicotine. So we have to be careful and thoughtful in how we regulate these products. Our thanks to dr. Joanna cohen, director of the institute for Global Tobacco control at the Johns HopkinsBloomberg School of Public Health. The school of Public Health is supported by michael bloomberg, founder of bloomberg lp and bloomberg philanthropies. Coming up, an exclusive interview with bruce slats. How his firm is preparing for a recession ahead. Meantime, stocks are lower and continuing their dissent this afternoon. Major indices down. 7 . The nasdaq down 1 . This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Mark im Mark Crumpton with bloomberg first word news. President trump is reimpose in tears on steel and aluminum from brazil and argentina. The president tweeted that both countries have been presiding over a massive devaluation of their currencies, and that he says is not good for american farmers. The president also