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tv   Bloomberg Markets Balance of Power  Bloomberg  January 30, 2019 12:00pm-1:00pm EST

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david: welcome to "balance of power." on the brief today, shaun donovan from washington. what do we know about them going into the stocks? -- these talks? lighthizer joking about the dinner in buenos aires on december 1 that set this all up and how he had been cut out of , drawing some laughs from his chinese counterparts. that is always seen from the negotiating room. they have hard issues on the table. president trump do to meet with the vice premier in the oval office tomorrow. we should be clear that we are not expecting the big final deal this week. we still have 30 days to go to the march 1 deadline. both sides will be keen to keep
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some cards close to their chest until the very end. david: is there some significance in that change in the seating arrangement? for some time, it seemed other people like steve mnuchin or wilbur ross would be running it. >> bob lighthizer is a longtime china hawk. he's been articulating a position over decades for the u.s. to get much tougher on china. he has argued in the past that letting china into the wto was a mistake. he has argued for defending global trade rules to take on china and he's been delivering that strategy from behind the scenes for most of the last two years. the difference we are seeing today is clearly he is the man in the spotlight, which is interesting, because he's also one of the shyest members of the administration. he's not someone we hear from very often. he's also someone who is going
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to be driving a hard bargain with the chinese at the table. david: president trump has been known as a man of grand gesture. when the north koreans walked out, they had a summit arranged. what must president trump expect? he must expect there will be something to say. >> absolutely. he's been keen since the market turmoil we saw over december to portray a path towards a deal. signal be sending the that things are going well. you don't have to go back that time heemember the last was in the oval office, may of last year, when it looked like they were moving toward some type of deal and had outlined a framework for negotiation. he went into the oval office, president trump tweeted out a
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picture of him in the oval office. a couple days later, after getting some blowback in washington, decided to do a 180 degrees turnaround and imposed serious tariffs. i would be nervous walking into the oval office, wondering what comes next. david: we go to capitol hill to eric watson. 1:30, republicans and democrats will sit down on the border wall. there's a bit of hopefulness going into this. trump tweeted if this group is not talking about a physical barrier, it's wasting his time. democrats have agreed to that in the past. current law include $641 million for a new barrier in texas. they will get down to talking about new barriers, fencing or
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something like that. we could have a deal. said youmocrats have can have a permanent barrier for some of the border, $1.7 billion. theoesn't seem to be money or the physical barrier. >> it has a lot to do with symbolism. for a lot of people on the left, a wall would be really divisive, showing the world we don't like mexico. if they can find something that looks smarter like drones or censors or blimps, that is something that can be more acceptable to them. imagine the president going in a different method. a lot is riding on this conference committee. the whole agenda for the rest of the year will set the tone. david: are dreamers figuring
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into this at all? there are mentions from time to time that we can make it a bigger deal if we include the dreamers. >> the fact that the supreme court is not eager to take up this case, it is slowly making its way through the courts, taking the gas off the pedal -- the foot off the gas pedal on this, democrats saying we can deal with this later. dick durbin said this is not the right time. securityte on border and make sure the government does not shut down for a very 15th -- shut down on february 15. david: can they move that quickly? is it clear the president will go along? >> that is the big question. i talked to the top democrat on this commission. when prompted real estate deals -- they want trump to commit to
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this. republicans are willing to work over this weekend to produce a deal by next friday. they can definitely do it. the question is about president trump. wasson down in washington. time to get a check on what the markets are doing. back up again on strong earnings reports, particularly from boeing. on here in a risk the u.s., all the major averages in the green. boeing bolstering the dow jones, up 1.5%, its highest point since december. s&p rising almost 1%, every sector in the green. the nasdaq rising 1.1%. corporate earnings bolstering confidence, that is certainly true.
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this is helping investors a bit as they await the decision from the federal reserve and the outcome of the u.s.-china trade talks. take a look at the bloomberg here, this is the move function for the dow jones industrial average. applen see how boeing and reporting earnings last night and this morning, putting in the work for the dow jones, accounting for some 270 points on the dow. take a look over here at the laggards. two components for the doubt in the red today -- for the dow in the red today. we look at the earnings on a percentage basis, we have advanced micro devices up 15%. investors and analysts cheering its forecast, doing a lot better than its peers. this is a company that makes
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surgical and medical products. investors like the fact that guidance top estimates there. anthem up over 10%. the health insurer expects to move the launch of their e market. oil and irontion ore, both of them rallying today. oil up 4% and iron ore over 13%. the tradeing, liking talks and sanctions on venezuela. david: coming up, we are less than two hours away from the fed's decision on monetary policy. we will go through what to expect and what not to expect with our bloomberg team. this is bloomberg. ♪
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david: this is "balance of power." we will turn out to mark crumpton. mark: congress is beginning talks today aimed at averting another government shutdown. a conference committee is having its first formal meeting. the same political obstacles separate the two parties and time is an issue. if they don't reach a deal in two weeks, president trump could refuse to sign a temporary spending bill. theresa may is standing firm on her demands regarding the irish border after the u.k. leave the european union. the prime ministers spoke to lawmakers a day after winning parliament's backing to go to
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brussels to renegotiate her brexit deal. a clear message about what needs to happen in weation to the act, but retain our commitment to no hard border between north island and ireland and look forward to working with the republic of ireland and the european union -- our commitment to know hard border on the island of ireland. mark: the eu says the brexit deal is the only deal being offered to the u.k. and it will not be changed. president has underscored u.s. support for the head of venezuela's national assembly. the president called him to congratulate him for declaring himself the country's interim president. he seeking to depose nicolas maduro. he thanked mr. trump for the u.s.'s commitment to freedom and prosperity in venezuela. it's been called of the most extreme cold in a generation.
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the u.s. midwest has been gripped by a deadly arctic deep-freeze sending temperatures plunging to 20 below zero in some cases. the postal service has taken the rare step of suspending mail delivery to a large part of the region, blaming the brutal cold on the polar vortex. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. david: the federal reserve's open market committee has held its first meeting of the new year. 45 minutes from now, we will find out what it decided from the meeting. we go to michael mckee. you are about to go into the so-called walk-up to see the statement. what is the first thing you are going to look for? michael: what did they do?
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did they raise interest rates or leave them the same? we want to look at the language. in the last statement, they changed their view from saying further rate increases would be appropriate to saying some further rate increases would be appropriate. "some" orrop the word the whole idea? it's the kind of thing that would reassure the markets -- people will want to know what they are saying. we will look at what the economic analysis is. they don't have a lot of data to work with because of the government shutdown. david: too much market reaction last time when jay powell gave the news conference. do they have to be careful about not reassuring the markets too much? i don't think they want to say too much in the statement. that is a committee production,
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it's hard to get exact language. the more you say, the bigger the risk you have. jay powell will be on both sides of the coin saying we are data dependent. if the data get stronger, we could look at raising rates. --they get week, we could weak, we could look at cutting rates. david: magical word, "patience." we will go back to mike later. for now, let's turn to carl riccadonna. good to have you here. let's talk about those markets. during the news conference, they moved quite a bit when jay powell referred to autopilot. a chart shows what's going on with the balance sheet. how can he both not rattled the markets but also not indicate he's had a fundamental change of heart?
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carl: it's not just autopilot on the balance sheet. it was a sense of tone deafness from the fed. equities were down 12% for the quarter, the s&p 500 down 12% and the fed said we have more to come next year and the balance sheet will continue to wind down. the markets said you are not paying attention to what's happening. we saw the sharp selloff. cheerleader,onomic the market will have that belief that the fed is not attentive to the signs of distress. he can't be too bearish, but he can't be too bullish, either. doesn't here is he manage his wordsmithing carefully, market participants might believe the december rate hike was the last of the cycle
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and the next move will be a cut. the fed doesn't want that. it will be hard to reverse that in the future. david: how much of it is how he says it? alan greenspan was notorious for talking at great lengths. that wasn't quite as true of ben bernanke or janet yellen. at the same time, they weren't real direct. jay powell is more used to board rooms and doing deals, answering questions directly. carl: he is very plainspoken. what happened in december is because he is to plainspoken -- too plainspoken. that is not the case. the fed was tightening too much for an economy coming off a tax cut induced sugar high. it had nothing to do with his speaking style.
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he wants to be clear and transparent about what the fed is thinking. david: some people would say that growing the balance sheet was a sugar high. they put a lot of cash into the same assets. doesn't he want to bring us off a sugar high, whether it's tax cuts or quantitative easing? carl: they should be careful not to do this cold turkey. the big issue for central bankers, we've never seen qe in the course of central banking history in the modern era. we weren't sure what happened as qe was administered. we weren't sure what the market reaction would be as we pulled back. we learned that we were going a bit too quickly and the market winced in pain as a result. david: he doesn't want to make news. him trying to ask
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find out something substantive? carl: what would cause them to change their trajectory of balance sheet policy? are they looking to stop it sooner? what economic conditions would cause them to move off the autopilot path things are on? there's an extensive, robust discussion taking place behind the scenes. i don't believe they have re ached a firm conclusion just yet. pause.ntered a fed how long is that pause going to be? what would lead them to move back onto a hiking trajectory? there will be more rate increases in the back half of this year. david: what about things that are not quite in the center point? china trade on one hand and, the ecb, what's going on in europe.
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mario draghi is in no rush to move things up. issue that jayan powell and company have discussed in the past. disrupting supply chains. they will be keeping a careful eye on industrial surveys to see if slowing global growth and increased trade frictions are impacting domestic production. in terms of this coordinated global growth slowdown, that has to be navigated very carefully. germany cutting gdp projections for the year. italy in a technical recession. they have significant problems on the continent their. --t's on the continent there significant problems on the continent there. david: tune in for special coverage of the fomc decision
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and chairman powell news conference starting at 2:00 eastern time. company doesn't seem to be struggling at all. we will talk about that, next. this is bloomberg. ♪
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david: you are watching "balance of power." our stock of the hour is alibaba. shares rising 4% today after beating earnings estimates. emma: a resounding beat and alibaba. from andit came expansion into other areas, entertainment, cloud computing. things have impacted operating margins a little bit. i should have a chart for you. here it is.
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growth ishe income outpacing consumption growth in china. that is a bit of a concern. executives mentioned there is some uncertainty ahead. they alluded to this slowdown in china. david: it's not hurting them? emma: not at the moment, but it could be a concern in the future. that's why they are focusing on these new growth areas. that is not a luxury that a lot of chinese companies have. china's trade negotiations going on out. are they a domestic company in terms of supply chains? they didn't talk about global expansion being another area for them. they had such a huge audience, customer base in china, it's not as much of a concern.
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it is something a lot of companies will be watching closely. david: we will talk about that. 20 companies in one day. disaster forf earnings in china. 20 companies told investors that full-year earnings would fall well short of expectations. the biggest life insurance company said net income dropping 70%. the ford motor's main partner in china said 2018 profit could have fallen by 93%. companies are citing this idea of a slowdown. decline ine was a sales of automobiles there for the first time in 10 years. what does it say about other global companies? boeing did rather well.
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emma: a company that is different -- we heard from caterpillar this week and apple, all citing concerns about china. from the benefiting huge demand for air travel. next we will, continue to talk about the u.s.-china trade negotiations. a man who has served as the u.s. treasury representative in beijing taking us through what is possible and what isn't so possible. this is bloomberg. ♪ i'm a veteran
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and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. david: this is "balance of power." westin.d for bloomberg first word news, we go to mark crumpton. mark: president trump is dismissing warnings from -- from
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national intelligence officials let north korea is unlikely to dismantle its nuclear arsenal as promised. the president lashed out on twitter calling his intelligence chiefs "naive and passive." mr. trump tweeted the relationship with north korea "is the best it has ever been with the u.s.." a second meeting between president trump and north korean leader kim jong-il and is expected in february. the u.s. and china resumed high-level talks on a trade agreement in washington, but a deal does not appear likely soon. bloomberg has learned the two sides are far apart on key issues. earlier today, protesters rushed the trade delegation from china as it left its hotel. the demonstrators handed out documents accusing china of forcibly relocating residents. we will take a closer look at the trade talks in a few moments with david dollar of the brookings institution. in italy, deputy prime minister matteo selfie any is under pressure to force an early election this year. bloomberg has learned several
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his leagueers of party want him to ditch the antiestablishment five-star movement. as an unrulye-star coalition partner who is hampering their efforts to deliver on intellectual and -- on election promises to his friends cracking down too hard on the so-called yellow vests protesters? a top european human rights official think so. the council of europe human rights is joining other critics to say police are going to far in their reference to call unruly demonstrators. more than 2000 people including protesters and police have been injured since the demonstrations began in november by the use of rubber ball launches used to disperse crowds. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: thanks so much. negotiations with china have never been easy. reaching a consensus -- a consensus may have gotten
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more difficult with huawei. when we spoke with michael pillsbury, who advised president trump, he said it could help. >> i think it gets us more leverage. they expect this kind of thing. the united states and china have been negotiating a lot of different things over the last 45 years. there is a cycle or pattern to these negotiations and usually applying pressure at the last minute through other means can be quite important. serveddavid dollar once in beijing as the u.s. treasury department's representative. he is a senior salad -- senior fellow now. good to have you with us. , if you will, does the law way -- does the huawei indictment make it easier? indictment,uawei looking straight discussions. i do not think it will have much effect of what will happen as
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-- chinesece premier premier negotiates. it is in the background. it is a reminder that things can get worse in u.s. china -- u.s.-china relations. i do agree that it does have an effect in terms of u.s. leverage. but it does not have too much effect on where the chinese are willing to go. david: what do you expect could happen? most people do not think we will get a deal. what could happen, what is the best case? david d.: i think what we are looking at is a dance. at this stage, it is pretty early in the negotiations. that is why it is unlikely they anld it -- they would reach agreement right now. if things are going well, we will hear positive noises, maybe off the record that the two sides have had good talks and are making progress. the most important thing to watch is this meeting between leo had an president trump. if that meeting occurs and if there is any positive optics from that, that can send a
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positive signal. the president needs to get involved and tell his team he wants a deal. o will use that meeting to encourage president trump's involvement. of the dance, you mentioned the possibility of president trump towing and meeting kim jong-un in vietnam at the end of february. if there could be a visit between trump and president xi jinping of china, that would be a very promising way to seal this deal. david: take us into the negotiation, and into the meeting with president trump schedule tomorrow. you know who he is and what the strengths are. i'm sure he would plan this carefully. what is he thinking as he goes into the meeting? what is a win for him? david d.: he only has a few minutes. i think he will come in and say china is opening up, they are willing to buy more products from the u.s., agree to mention a few specific things, big-ticket items like more soybeans or other agricultural products.
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some manufacturing products. he is likely to emphasize that they are revising their foreign investment law to make it illegal to have forced technology transfer, improving intellectual property rights. a cynic could say we have to see how well implementation goes in these areas. i suspect he would have a pretty good pitch. it would end with the notion that the two economies together, if we are continuing to integrate, then we are likely to well. the u.s. will do well. the stock market will go up. i think he will be playing to that sense that this could be a big win for mr. trump rather than escalating the trade war. david: talk about what that further integration looks like. it seems to be shifting. i will put a chart of the that puts together china, singapore, japan, that are going from very large net exporters to the reverse. tochina depending on exports the united states for the future strengthening of its economy? no, i don't think so.
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i think it has become less export dependent and less export dependent vis-a-vis the u.s. there is an irony about having this trade conflict now. there are a lot of problems in terms of accessing the chinese market. the big story in china is the consumption will be growing rapidly. you had the story earlier about alibaba's extraordinary performance over the last year. that is a good example of a consumption oriented company. american companies want to get in on that and get a decent share. that is a legitimate issue for the u.s. to negotiate on. david: what about the national security part of it? the president has been adamant in saying there is a real concern with china and its policy, including the china 2025 policy. testify andcoats congress. this is part of what he had to say about china as a national security matter. dan: while we were sleeping in the last decade and a half,
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china had remarkable rise. capabilities that are stunning. byot of that was achieved stealing information from our companies. david: is this the most difficult issue there is between these parties? i'm not sure the chinese admit that has been going on. thed d.: i think that is most difficult issue. the u.s. really faces a fundamental choice. on the one hand, people like myself, we think we can link fence really critical military technology, technologies that have military applications and really keep that separate from china and develop that on our own while at the same time, having a lot of integration with china. they are producing 5 million stem graduates per year. there is going to be more and more research done in china. the question is, can our companies be involved in that? the other point of view is, we
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are really heading for conflict with china and not just military technologies. we have to pull back from the whole relationship. i think whenever you hear that talk, you get nervousness in markets because that will be quite costly for american economies. can we ring fenced the real security technologies or is that naive? david: let's go to that question. i agree. that is what businessmen and markets are concerned about. the chinese are catching up with us. they may well pass us. cannot happen without conflict? david d.: i do not think we should exaggerate this. china has made impressive developments in a few specific areas. they are far behind the united states technologically. the u.s. is still the most innovative economy in the world. if we get various things lined up correctly, we can anticipate continuing to be the most innovative economy. i do not accept that we are at risk of falling behind china. but they are going to be the biggest economy in the world because of their population size.
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there is a potential threat. i am in the camp that says, thes ring fence security-related technologies, but let's try to benefit from integration with china in terms of trade investment, chinese students coming here, all of these things are good for our economy. david: thank you for your time should that is david dollar, senior fellow at brookings joining us from washington. a busynt trump had morning tweeting, mainly on foreign policy and shakespeare we go through what the president said with our national security roundtable. live from new york, this is bloomberg. ♪
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you are watching "balance of power." off message. president trump's leadership appeared before the senate bringingnce committee their assessments to global threats to the united states. much of the testimony undercut the president's own claims about national security. for more, we will bring in margaret talev and bill very who fairies who leads that. i'm going to play a little bit of what dan coats had to say about his own intelligence team and its attitude toward iran. iran isdo not believe
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currently undertaking activities we judge necessary to produce a nuclear device. heid: that is what testified. then the president tweeted the seem to bee people passive and naive when it comes to the dangers of iran. my question is, how can he keep them in the positions he has them? if he is naive, should he have that job? margaret: i think that is everyone's got instinct. whodo you work for somebody you are not sure they are taking their advice seriously and they will publicly denigrate you. many of president trump's advisers, and i would put dan coats in this category, of weighing the loyalty to the country as the daily aggravations of dealing with this public questioning and berating. but i think you're right. what we have seen because of this report and because of what mitch mcconnell, the senate
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majority leader began to do yesterday in terms of pushing back on syria, we are beginning to see or of a push back in some of this dissonance between the president and both of the top when it and allies comes from everything from the threats of iran versus north korea to syria, to china. advisors,is not just specifically the intelligence team. this is gone back before he was president. he has been critical of the national intelligence apparatus, whether it's russia or north korea or whatever. what is the relationship right now between our intelligence officers and the president of the united states? bill: you're right. it has been a strained relationship since the week or two before president trump took office when he was first advised about the so-called dossier that has been wrapped up with the mueller probe and the findings of russian interference in the 2016. this is his team now. it has always been a strained relationship. i think the president probably
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looks for assessments from the intelligence community. but he deftly does not rely on goingor policy guidance ahead with the decisions whether it is the iran deal which must -- which much of the intelligence community come even if they have problems with what was keeping iran in check, the president is agreed and move forward to withdraw from the treaty. there has been a more public attention than we have seen between any recent president and his top intelligence aides. david: one place we have had tension is about the policy of withdrawing troops from syria, where there is a threat from islamic state. this is what mr. coates testified yesterday and from -- in front of congress. >> isis is intent on researching and command thousands of fighters in iraq and syria. not upon the president, bright and early, and he tweeted, isis was out of in syria when he became resident and running rampant. since then, tremendous progress
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made especially over the last five weeks. how do they reconcile these two positions, and when it comes to policy making, because it seems to be central to whether it is safe to pull out. margaret: the president is right to say that significant progress has been made. since he took office. what point do you leave is the question and how do you leave? there are a number of concerns. and what the intelligence assessment is pointing out is the idea that if president goal is to eliminate the it could isis, actually hurt in that goal and allow isis to regroup. you see this manifest itself in a number of ways. part of it is there are hundreds of foreign fighters for isis uf been captured and held by the kurds. there are concerns if the withdrawal could lead these people to regroup either inside
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this area around syria or to go back to home countries including the u.s. and western europe and regroup. there are concerns here. it is coming from the intelligence community and from republicans in congress. othernot rand paul, but republicans in congress. that is why you saw mitch mcconnell take a fairly extraordinary step, a public -- it is not a rebuke, at least a public disagreement with the president's instincts and pace on syria. intoo try to get legislation, a recommendation for the military to slow down this withdrawal. david: another area of disagreement, or dissonance, is north korea. president trump has been optimistic about north korea. this is what mr. cuts had to say about north korea and whether it would get rid of its nuclear weapons. >> we currently assess north korea will seek to retain its wmt capabilities and it is unlikely to completely give up its nuclear weapons and
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production capabilities. outd: president trump came with a tweet and said, time will tell what happens with north korea. at the end of the previous administration, the relationship was horrendous, now a different story. i look forward to seeing kim jong-un shortly. once again, what should our positive be with north korea and who gets to decide? bill: president trump is right in the sense that since he became president, north korea stopped testing intercontinental ballistic missiles. it has stopped testing nuclear bombs. he claims that as a major success. hashe is right but testing stopped. the analyst to follow this closely will tell you that even since he met with kim jong-un in singapore last year, north korea has continued to produce the material to go into nuclear bombs. it has continued to produce rockets that could launch nuclear bombs. in that sense, there has been
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very little progress. we still don't have international inspectors in north korea and we do not have a complete inventory of their nuclear program. there is a lot of questioning of what exactly has been accomplished, even as the white house moves forward with plans for trump and kim jong-un to meet as soon as the end of next month. the big question being, what exactly would they accomplish? what would come out of that that would move the u.s. closer to its goal of denuclearizing north korea? whatever distance or disagreement there is, there is one thing that they all agree on. we had the director of the fbi agree with the president that china poses a real national security threat because of what it is doing with intellectual property. that is one place where there seems to be raging agreement within the administration. margaret: i think you are right. it is easy to get it mixed up with the trade fight. if you put that off to the side with paris, and look at what
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this administration is trying to , with theawei and zte ip stuff, butjust intelligence work for the chinese government through a backdoor on 5g, you see both the political side of the trump white house and the intelligence side on the same page. it is one of the few areas of agreement. the one other thing i would point out is the border wall dispute and the idea that the president might declare a national emergency, inside the intelligence threat is a 42 page report, first mention of the wall on -- or of mexico and central american people trying to breach the border, page 41. [laughter] david: that's great. thank you so much. many thanks to margaret talev and national security team later bill ferries. coming up, facebook reports after the bell to what investors will be looking for a mid-mounting pressure over the social media giants privacy practices.
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this is bloomberg. ♪ ♪
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david: this is "balance of power." i'm david westin. we are going to turn to a story of facebook. their earnings will be coming out after the bell. we are. as of what that will happen. particularly investors. first we go to sarah frier and emma chandra right here in new york. is the privacyut issue. we saw within the last 24 hours, they pay teenagers to give personal data. is this a way on the earnings , sarah? sarah: apple has revoked facebook's and are tech -- enterprise. it basically means facebook cannot use any of the apps it is using internally that allows to
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test products. everything has to go through app store review. facebook employees are very burdened by this. inn if it is not showing up the concern of investors, it is certainly resonating within the halls of the menlo park headquarters this morning. david: emma, let's turn to you. give us a table setting of what we are looking for as the earnings come out. emma: the earnings will be coming out after the bell. there has been an amount of optimism about user growth and things like that. but what sarah is referring to is a continuation of what might be considered as privacy concerns, a number of scandals over the last year. not least the cambridge analytical one. if there is another thing that seems to suggest that they might be misusing data or perhaps not taking good care of facebook users privacy. that could certainly be a concern. does notrah, it appear, from what i say, that this concern of privacy is causing people not to go on
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facebook anymore. i visited -- but is it causing facebook to make changes in their product that might reduce engagement? sarah: facebook may be dealing with a reduction in engagement and time spent by users anyway. what they are going to try to argue on this earnings call, what they have been arguing for the past year is they are making steps to make less low-quality content service. they are trying to reduce viral videos that are basically just attention grabbing tactics that get people interested. but maybe do not give them a good feeling afterwards. that is one of the ways they will explain a decrease in time spent, which we are expecting to continue. but they will try to make the case that they have all of these other properties, instagram, whatsapp, messenger, and beyond, that can really see growth into the future even if the main app slows down. david: emma, what about monetization?
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investors care about making money and they are trying to monetize in these products. emma: that's true. that is the concern that if you see fewer users, monetization is in focus p people are concerned about privacy, that is something that will [indiscernible] sure thato make people feel better about privacy concerns. to emmaany thanks chandra in new york and sarah frier reporting from san francisco. later today, we will hear from sheryl sandberg at the 6:00 p.m. eastern time on daybreak asia. sign up for the balance of power newsletter. this is bloomberg. ♪ ♪ this isn't just any moving day.
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scarlet: i'm scarlet fu. this is "bloomberg etf iq." ♪ scarlet: finding your footing with signs of the global economy is slowing, we examine the case for emerging markets and japan along with u.s.. quality first. ishares u.s. factor etf's. she joins us to explain why the quality factor was estimated in this late rally. t


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