vonnie: here are the top stories we are covering from the bloomberg and around the world. sparked by the trade truce between the u.s. and china.investors begin to doubt any real breakthrough . another hurdle for theresa may. the european union's top court .ules that is fueling the campaign to stop the divorce. and to cut or not? the saudi energy minister says it is not sure to say that opec will cut production and on certain -- an uncertain how big the cuts will be.let's check the markets with abigail doolittle. they are in the red. abigail: you are red. 500 andthe dow and s&p nasdaq all down by a have percent or more. this of course after yesterday's

big rally induced by some trade relief. investors wondering whether or not it will actually happen or what the reality will prove to be in the future. stopped on with bonds rallying. the 10 year yield well below 3%, down three basis points, selling you investors are seeking safety. this is influencing the competition for the s&p 500. let's take a look at what is happening. you will note that seven of the 11 sectors are lower, helping to explain why we have a decline for the s&p 500. a number of them in the defensive sector higher. all our defensive. anbang, the financials being weighed on the fact that yields are going lower. that will weigh on the lending activities. industrials making a lower. and tech to the downside, too. let's take a look at some of the biggest drags for s&p 500 coming from the tech sector. apple down one point percent after yesterday's big rally.

we will be looking at this in the future. that chart has not healed, but today, hsbc downgrading shares to a hold, saying the iphone growth is slowing dramatically. in addition, it's at apple's reassigning some of its marketing efforts around the iphone. investors not like you either of those reports -- not liking either of those reports. broader markets sharply lower. this is some of the weakness we are seeing in the day. real weakness. these shares down sharply down 39%. today, 10%. you can see this on the one-year chart really making a standout. they beat estimates, by orders dropped for the first time in four years. the outlook looks a little bit murky. the ceo, he was saying november showing weakness. this has everything to do with writing rates. as mortgage rates have gone up, that has really made on the

housing sector. these shares of a luxury homebuilder down 40% over the last 12 months. guy: let's take a look at what is happening in europe. 90 minutes until the close. european stocks down 6/10 of 1%. we really did not stick around long on that sort of trade war positive vibe, did we? did not think a lot to unwind, and that is the results here. you can clearly see that in the auto sector in europe today, down by 2.21%. not completely undermining the rally we saw yesterday, but certainly a chunk of that being taken away. waiting to see what the results of a white house meeting today is. essentially providing clarity on what is happening with the european sector. the pound did rally. this on the ruling that the european court of justice is a nonbinding advisory to the u.k.

that they can wind back article 50 without the rest of the eu. both sides have tried to stall this case but that is an interesting wrinkle in the story as we move forward to the key vote on the 11th. 1.2749. this really highlighting the risk off vibe we are seeing. let me show you the today we see in dollar-yen. this really tells you everything you need to know. big move in the japanese stock market overnight. the japanese yen rallying throughout the session a little bit earlier on and a big move just really highlighting the risk off sense with people running to the safety of the yen. vonnie: let's stay on the markets now. confusion swirling around trade talks and some interesting moves in the treasury market. mark joins us now from fort lauderdale in florida.

spread at 12.12 basis points right now, mark. the move that we see, the accelerated move the last couple of days, produced an inverted 35 spread. what is always telling you? mark: the spread differential is only a basis point or two, so yes, technically we can say we are inverted. what it is really telling you is that we are expecting some kind of recession coming up or at least significant slowdown. and i think a lot of the slowdown or a lot of the decline in the u.s. equity markets has been that the fed has made a real mistake in raising interest rates so quickly and keep talking about it. and i think the biggest driver for the downturn in the equity for where well as treasuries are right now and as well as the widening we have seen take place in the credit

markets has been that the fed has ever heard in their judgment. -- erred in their judgment. vonnie: would you say they will not raise again in december? mark: it is unclear to me what he will do in december. certainly we recently heard governors saying we should slow down or stop raising rates for a while. whether that carries through at the meeting in december is a question. i just think it is a tossup answer. guy: mark, which bit of the curve should we be believing we havew because while something of the front end, we have a steepening at the backend. it is a tossup as to which you believe. which would you focus on? at the frontmostly end through the 10 year. the bond operates in its own

space having to do mostly with some very large money managers and some very big insurance companies are looking to do in terms of absolute yields. so you have to kind of put the 30 year bond in its own space and look at the short intermediate-term in terms of forecasting what the u.s. economy is going to look like coming up. guy: are you surprised that the rally we saw monday did not last longer in stocks? mark: no. i think there was a lot of hope, you know, about the negotiations between china and the united states in terms of the tariffs. i think eventually they will work out something. what you really have is a game of thrones if you will. you have the united states that has been the meeting economy of the world for decades and china is trying to compete. what is not said often in what you need to think about is the

american economy is $21 trillion. the chinese economy is only $13 trillion. so the u.s. economy is substantially larger than china's. sometimes i think that is overlooked. vonnie: explain why you think the fed is moving too fast with the unemployment rate at 3.7% in the market looking for another 200,000 jobs created when we get those numbers friday. mark: certainly, vonnie. the fed talks about normalcy. in my opinion, there has been no normalcy in 10 years since the lehman brothers bankruptcy in 2008 and 2009, the beginning of the fiscal crisis. banks,take me 4 leading the chinese central bank, japanese, ecb, and the united states, they created, if you economy of free

cash flow that was $21 trillion. it is the same size of the economy of the whole united states, but the difference is there is no liabilities to what they created. in other words, you know, there are no workers. nothing gets paid. just money created from nothing. so it is really worth about $100 trillion on the equivalent basis, and that is what has driven the economy. to their credit to where we are of the u.s.,omies europe, japan, china. they have been much too aggressive in trying to raise rates to offset that. i don't think there has been any normalcy for the last 10 years. so they are trying to get to something they call normalcy. i just think it is an illusion. guy: mark, bloomberg spoke to the saudi oil minister a little earlier on today. this is what he had to say. >> it is premature to say what

will happen. course is anof advocate for stable global oil markets. we need to get together and listen to our colleagues, hear about their views on supply and demand and the projections of their own country's production. russiark, if opec and cannot get a deal done and oil continues to drift lower, does the u.s. ten-year stay below 3%? is that a central case? do you expect a local rally? what do you see happening? mark: i think what the fed is going to do in terms of rate increases or not is going to be much more substantial in terms of where the u.s. treasuries are. however, let me address your point here. you know, in terms of a change in the world, a 100 year change

in the world has been the united states is now depending upon how you measure it the largest or one of the couple largest producers of oil and natural gas in the world. so the influence of opec is far less than it was four or five years ago. and certainly far less, far less than it was 10 or 20 years ago. so you have saudi arabia and russia trying to go at it because really, those two countries, the whole basis of their economy is energy, which is a very different scenario than the united states. we will see what they are going to do. they will obviously have reasons for wanting to keep the price of oil up. it just depends how friendly they are going to be politically --h the rest of the country countries. vonnie: you say to know what you own.

you have some good ideas. if you could in a few moments, can you tell us what the best ideas are right now? mark: well, i think this year with the equity markets the way play,re, the appreciation in other words, hoping that something will gain likely high tech stocks has not been working very well recently. i think there are some etf's enclosed with monthly dividends that are paying double-digit returns. and i think those are very nice places to be to get the money every month and to get very nice returns on your money. cycles,as we go through i have been on wall street for more than four decades. you go through cycles and different strategies work at different times. during the run-up, the appreciation strategy worked very well. a lot of people made a lot of money. now i think you have to move and

so i'm looking more at cash flow strategies as being more advantageous. vonnie: always a pleasure. from fort lauderdale, thank you. mark: thank you. guy: let's get a bloomberg first word news update. >> the white house is backtracking on president trump's tweet about china and auto tariffs. the president we did after his dinner with xi jinping that it was an agreement to reduce tariffs on u.s. make cars, but an economic advisor acknowledged a deal has not bee signed and delivered yet but it is coming. meanwhile, top executives at the three biggest german automakers go to the white house today to discuss tariffs. ify have the most to lose president trump goes ahead with levies of up to 25% tariffs on german cars shipped to the u.s. they do not want to get tangled in negotiations handled by the

european union. c.i.a. director gina haspel will meet a group of senators today about the killing of saudi journalist jamal khashoggi. concluded that the crown prince must have at least known about the plot. president trump has equivocated over who is to blame. in france, president emmanuel macron is making a u-turn to try to stop a protest movement. the government announced the suspension of the tax hikes that led to the violent demonstrations in paris but did not given on the supplemental increase in the minimum wage that they demanded. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz. this is bloomberg. guy: thank you very much. coming up, the pound got a bit of relief today following an eu court opinion that the u.k. should be allowed to reverse its notice to leave the block. we are live in brussels, next. that is the pound reaction on the news. a bit of a round-trip.

this is bloomberg. ♪

to undo brexit, to revoke article 50: do it unilaterally, and that will strip away powers from the rest of the eu 27 countries. if you look at the guidelines that were offered and the opinions, this is a decision of a sovereign nation and the u.k. would still have powers as a sovereign member of the european union to decide we want to take a step back. you point out this brings a number of new options for theresa may. she has been arguing brexit as a binary choice. according to the guideline, not so much. for the european union, again, it is two ways. they can argue it is good because we can take the u.k. back. clearly this is not something you hear but a lot of member states think maybe we can still do this. secondly, of course, the

downside risk for the union. that is the fact you can get other states who threaten to trickle article 50 as a way to negotiate and then decide we don't want to do this anymore. it can work both ways for the european union. vonnie: will be sounding the horn on this? will it be the labour party in britain, for example? will it have backing from europe if it does? maria: that's a very good question. i think at this point when you look at prime minister theresa may, she said this is a binary decision. you need to back my deal or there will be no brexit. that is not about. this is not what the referendum so many people are good for but it shows there are many options that she has not been willing to consider until now obviously for political reasons. for the opposition if they wanted to, they can say that there is other options out there. for the european union, it carries with, but it could show ahead of the european election in 2019 that this is an option

and there might be hope that the u.k. can be back. we heard from jean-claude we want to beid friends and the door still open but the decision has got to come from the u.k. this is something they will have to decide.for the time being , we heard it from may today that this is something the u.k. is not considering. the official line is the u.k. leaves the european union deal ordeal -- or no deal. vonnie: thank you. ahead, apple's experiment thing with new marketing strategies in their effort to increase iphone sales.we find out what that means for consumers . this is bloomberg. ♪ bloomberg. ♪

vonnie: live from new york, i'm vonnie quinn. guy: and in london, i'm guy johnson.this is "bloomberg markets."

vonnie: apple is trying to boost sales of the iphone, even offering promotions for the blockbuster products. let's welcome paul sweeney. this is a shift in strategies. apple was never a discounter before. paul: that's right. apple has occupied the premium part of the market. vonnie: apple is not happy. paul: exactly. it's interesting to read what is happening is it is a very saturated market, the handset market.increasingly competitive . the apple phone sales, unit sales have slowed. think. they stopped reporting unit sales but this reflects we are going into the christmas season, the holiday season, and a recognized to grow unit sales, they need to be a little bit more promotional. guy: is this just a recognition that the price point is just simply too high? paul: you know, we have always had this concern. investors have concern for this product really around the world.

and i think certainly in north america and a be developed markets, the answer has been no. they have been able to grow unit sales as well as asp but there are concerns in some of the emerging markets that their product may not be priced effectively.so what we are seeing here is it may be a short-term push to drive some unit sales heading into the holiday season here. but again, the concern from investors clearly will be is this a promotional pricing or more aggressive pricing going to be something that will be more long-term for this product? if so, that goes into the pricing story, which has been able case for apple investors. even though unit sales are slowing, the product has a lot of pricing power.that may be getting challenged here . vonnie: these aggressive trade-in offers, one analyst calls them fire drill trade-in deals. this is more like a used car dealership. paul: exactly. if you have a product of the market like the iphone has been, this is something you typically don't see. as an investor, you don't want

to see it because it goes to the product,ature of their which winds along with it a lot of pricing power that the company has been able to really flex over the years. some again from investor standpoint, is this a short-term promotional one-time event, or is this the beginning of a more aggressive pricing scheme for this product longer-term? guy: apple is investing heavily in new products.virtual reality is one of those . is there any sense one of these parts will camano same -- command the same margins as the iphone? paul: no. the better case for this story the last couple years is what is next? what is the next product to replicate the growth that the iphone has delivered for apple? quite frankly, there has not product.xt most investors in apple today are looking to the services side of the business as a growth driver for this company. it is about 14% of revenue now. it is going quickly permitted is a high-margin business.

some of the new hardware they are creating is also designed to drive more services revenue over time. i think that is where most investors feel like the growth for this story will come next. vonnie: sorry apple declining further,, down 1.9%. apple down 1.9%.our things to paul sweeney . to --nks paul sweeney thanks to paul sweeney. guy: the white house does not have a deal to reduce tariffs on u.s. made cars with china but, a deal is coming. the latest, next. this is bloomberg. ♪

i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience.

my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. vonnie: live from new york, i am vonnie quinn. guy: and from london, i am guy johnson. this is "bloomberg markets."

let's check in with bloomberg first word news. here is kailey leinz. kailey: the frontline says russian president vladimir putin was not insulted by trump's failure to meet with him. theident trump canceled meeting after russia's seizure of three ukrainian naval vessels. there are numerous issues the sides need to discuss. threatening to close the straight that is a passageway for nearly a third of all oil. u.s.resident says if the decides to block iran oil exports, no oil will be exported from the persian gulf. the straight is crucial to global energy surprise. italy's prime minister has indicated the populist government is about to back down in a budget standoff. he says he will make an offer soon to the european commission which rejected the budget. he insist the proposal will not jeopardize reforms.

president trump paid his respects to former president george h.w. bush at the capital. now every day americans will get their chance. state.h will lie in a funeral be held at the washington national cathedral and he will be taken back to texas for burial. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over than 120 countries. i am kailey leinz. this is bloomberg. bonnie? -- vonnie? president trump has just been tweeting. the negotiations with china have already started. will be working closely with steve mnuchin, larry kudlow, and peter navarro to see whether a real deal with china is possible . if it is, we will get it done. china is supposed to start buying agricultural products and more immediately. president xi and i want to deal to happen and it probably will.

it is a bit like parsing a fed statement in some ways. what does that probably mean? sean: it is a constant series of parsing we are doing on the deal. i think the big story is we are ,.5 days past of the dinner which was clearly an important event and we are still trying to figure out what the sides agreed. i think the tweets we have seen from the president are an effort to clean things up a little bit. there we are seeing three crack -- three clashing things. his first tweet he raises the possibility of extending the 90 day truth if they are making progress, talks about the possibility of a fair deal. seems to lower the bar on what these ninety-day negotiations can accomplish. then he comes back and says i am manrror -- i am a tariff

and i will hit the chinese with tariffs. ends it all this morning by saying i think we will get a fair deal. it is a bit of an effort by the president to clean things up. as is usually the case he is adding to the confusion. to theat is also adding confusion is we not getting the chinese side of events. we just see pictures of president xi arriving in portugal. is the fact he has not made it back to beijing the reason behind that lack of communication? that is what we have been hearing from beijing. what is holding things up on there and is that president xi is on extending world for. .ow -- extended world tour he was in panama and has been in spain over the past week. that is one element.

we did see something from the chinese overnight that was interesting. that is a package of potential intellectual property reforms that looked potentially substantive although they were issued quietly and it is unclear how related they are to the u.s. demands. vonnie: who is leading the negotiation? you have wilbur ross, bob lighthouses are, how are the chinese supposed to deal with these differing views from the administration? shawn: that has been a challenge throughout this year. the one thing we need to step back and remember is the architect of the tariff policy, besides the president, has been bob lighthizer, the u.s. trade representative. what we have learned in the last 24 hours is that light heiser will be leading the negotiations over the next 90 days while working with steven mnuchin, peter navarro, larry kudlow, and

so on. bob lighthizer leading these negotiations is important. he is a longtime china hawk and has been someone critical of past administrations for agreeing to or being suckered into prolonged negotiations. it is going to be interesting to watch him now that he has his hands on the wheel. in about 25 minutes we understand that ceos from german car manufacturers are going to be at the white house for talks. .ou have your ear to the ground what are we hearing about the possibility of tariffs being imposed? shawn: that is the other big threat, these national security tariffs trump is threatening to impose on imports of cars from the eu, japan, and other countries. essentially global imports. the big victims would be european makers. they will go in and they will

make their case they are big investors in the united states. bmw has its biggest plane in the world in spartanburg, south carolina. there are also one of the biggest exporters of u.s. made cars. they will be pleading their case. the deal with the eu and japan has been that trump would hold off on imposing these auto tariffs as long as negotiations were going on, productive negotiations were going on with the eu. those negotiations are not due to begin until january. the question among european will trump live up to his in d of the bargain -- his end of the bargain. does he have the patience to do so? that fits in with the china front as well. the eu and japan are potentially big allies of the u.s. when it .omes to taken on china

there any templates the u.s. will follow or is this an isolated case? china is a bigger case for the u.s. than any other country. it is a unique example. there is also a bipartisan consensus on china and the need to get tough with china that you do not see applying to the issue of auto tariffs or the steel and aluminum tariffs that he introduced earlier this year. trump may be following a template he has used in other countries with his china talks, which is threatened tariffs, get someone to the negotiating table, and cut a deal. as well is this kind of truce we announced over the weekend, it he announcedodel

in july when he agreed to put a pause on auto tariffs. we are seeing a trump strategy, a trump methodology at work. we still have this huge question as to whether or not it will actually work. guy: from washington, bloombergs shawn donnan. .hank you very much indeed of next, we are going to be talking about the oil market. crude is getting more jubilant over the prospect of production cuts from opec, plus the saudis tempering that enthusiasm, speaking exclusively to bloomberg. will be looking at the oil market next. this is bloomberg. ♪

guy: live from london, i'm guy johnson. vonnie: and from your, i'm vonnie quinn. this is "bloomberg markets." guy: it is time for the bloomberg business flash. let's kick off with wells fargo which expects to spend $9 billion on technology this year. about 800 million of that will go toward cybersecurity. also told theo goldman sachs financial conference the bank is on track to achieve its expense target and a net income will be up this year. least in talks with at two peers about joining its automated driving group. the german automaker has long been an advocate of joining with rivals for self driving cars. telling bloomberg high research costs and technology encourages ownerships. thomson reuters plans to cut 3200 jobs by 2020.

that is a 12% reduction. the electronic information company says it plans offer fewer products and have 30% fewer locations. bloomberg competes with thomson reuters in providing financial, news, data, and analytics. and that is your bloomberg business flash. let's turn our attention to the oil market. .il paring earlier gains saudi arabia tames expectations of production cuts. the kingdom's oil minister telling bloomberg the opec plus group needs more discussion before it forms a plan. >> it is premature to say what will happen. saudi arabia is an advocate for stable global oil markets. we need to get together and listen to our colleagues, here about their views on supply and

ofand and their projections their own countries production. guy: let's get the view of bloomberg oil strategist julian lee. what is still to be decided? everything,ty much as the minister said. there is no agreement yet on whether there will be a cut. will there, won't there. there is what baseline you measure that from. how do you share it out among opec and non-opec producers. this is an opec meeting that feels much less decided in advance than any i can remember in the last three or four years where we are going into this meeting with a sense that almost anything could come out of it. vonnie: how do they map it out? $53.46. of wti at

are they able to say a 1.3 million barrel cost would bring us up five dollars? how do they do it. julian: they are not targeting a price, they are targeting market balance. they are not looking at a cut of x = price change of y. they are looking over a much longer time. they are looking at the forecast for next year. their own forecast published next month shows that they continued producing as they were in october, there would be oversupply of 1.3 million barrels a day. things have changed since they made that last forecast. we have had a slight falling of relations between president trump and president xi of china over tariffs. that may give people a little bit more confidence that demand growth will be stronger next year. that means the demand for opec oil will be stronger, and then we had the surprise output cut

from the canadian province of alberta that was announced on sunday. that is going to take 375 barrels a day of supply off the market that was not forecast. that means that this output cut that is needed from opec may turn out to be smaller than people were thinking a month ago. vonnie: is there any sign of anyone thinking outside the box? not opec output is set to rise by 2.2 million barrels. any point in trying to get countries to join the cartel? they've always been looking around for others to join in but the bulk of that growth is from texas and the other u.s. shale provinces. there is not any chance in anybody's mind that the u.s. is going to scale back on output growth. the government does not control what happens and there is very little appetite for reining in

rampant growth in texas. guy: what does the story look like near-term if we were not to get a deal and how would that lack of a deal project the oil price going into next year? julian: the immediate reaction would be one of disappointment. the market for oil prices have picked up a bit on the back of expectations that a deal will be done. we have heard the saudi's and russians talking to each other. we have seen oil prices slacken a little when the saudi minister says there were not be a deal. if we come out of the opec meeting thursday, when the russians are in the room scheduled for friday, and if we come out of those without a deal, i think prices sink again in the short-term. then i think if you look forward into next year, you have this canadian cut, you have potentially stronger demand growth if the chinese/u.s. trade relations thaw.

the saudi's have boosted their production by about one million barrels a day. if they were to trim some of that, if the russians were to cut back, we might find that this balance is not so far out of whack as it looks. lee.e: bloomberg's julian thank you for joining us in our london studio. julian: thank you. ahead, looking at rates ahead of friday's payroll. futures in focus is next. this is bloomberg. ♪

guy: live from london, i am guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." time for our stock of the hour. analysts are citing slowing momentum and stress valuations

in the aviation market. joining us now is taylor riggs. why now all of the sudden? taylor: if you look on our function and you see the sales growth slowing, that was part of the concerns, down to .3%. that has been slowing and that is circular and down -- that is circling down. we will talk quickly about white is a neutral from a by. there is a lot of concerns about oil prices. trade concerns, oil prices, had to close out a plant in the u.s. . that is created additional cost. that is the immediate why. it is also a valuation perspective. they have a pretty high valuation, so analysts who are cutting the stock down to a neutral saying the sector has growth prospects. the sector does look a little bit -- in particular, bae in

general. a ratio of about 19 relative to the s&p 500 in the sector which is cheaper on evaluation perspectives. , how much ofat bae this is about the defense story and concerns surrounding that. how much of that is about valuation? bae is a defense operation rather than a civil side. a lot of that is the defense concern. they are gaining contracts. there are broader concerns in the aerospace industry affecting broader companies. rolls-royce is one. they were downgraded as well. a lot of concerns about overcapacity in the aerospace industry. analysts are also concerned about wide-body versus narrowbody. mtu aero was kept at a neutral

because they have a lot of narrowbody exposure and that is supported in the near term. long-term the wide-body exposure is a concern. south ron was kept as a buy. is a defense story but it is also a civil aerospace story. guy: my favorite subject. aerospace. bringing us downgrades from bank of america, merrill lynch, subcomponent suppliers like boeing and airbus. vonnie: time for futures in focus could treasury yields are down as we look forward to friday's jobs report for it let's get to the cme and bring in the managing director at the btig. what is everybody making at the cme of this yield inversion in the curve? there is a lot of talk about the curve inversion. the fed has been saying that

when everyone is watching the fed more -- move toward inversion, the fed was making comments like this is different this time. it did not mean the same things it didn't the past. now that we are inverting at the front end of the curve, the two-year, five-year portion of now that we have inverted the fed will start taking a look at it, maybe not think of looking at at this time. the pot that is inverted is not the part the fed ted's to look at for disgusting weather there is a recession down the road. that is the three-month 10 year. however, they will still be taking notice of it. frequently in the past, when we saw two sides invert, it took from three months to nine months to see the 10 year invert. we could still be a ways off, but even that tends to indicated recession not for at least four quarters. ?onnie: what changed

the unemployment is at 3.7% and we are looking for a healthy jobs report friday and the manufacturing data yesterday was an strong expansion territory. holly: you are entirely right. other things have been going on which have been working into what the markets are favoring, which is less rate hikes. we have seen housing pullback even though they are still relatively strong. we have seen a pullback in the housing numbers as interest rates are rising. we are still seeing the employment numbers fairly strong , probably a little bit below their 2018 average so far this year. the numbers we get on thursday and friday. inflation has been nonexistent and has gone from its lowest a few years ago. it still has not gotten above that 2% level that tends to be the fed target. when we talk about the 2% level, it is a pce year-over-year numbers. that is back down to 1.8%.

if inflation starts moving negative, that is going to give the fed's some pause in their rate hikes. that does not mean they are stopping or cutting rates, but it does mean they will probably take a pause at this point after the december hike. vonnie: holly liss at the cme with us with futures in focus. guy: a quick look at the markets. this is the picture we find ourselves with. the s&p sold off in the first hour, stabilizing a little at the moment. ups and fedex are having a tough day. interesting to tie a line to that in the trade story. we'll continue the market coverage next. this is bloomberg. ♪

♪ >> 30 minutes left in the european trading day. >> this is the european close on bloomberg markets.

♪ >> here are the top stories we're covering from the bloomberg and around the world. treading low, stocks are up, the partial inversion of the u.s. juncker. europeandvisor to the says that britain can cancel brexit without that you permission. but not for long. and not a done deal. saudi arabia with opec and russia has yet to agree how it would be structure. an exclusive interview. let's take a look at where we are with the markets right now. this is the picture in europe, the stoxx 600 trending down. to be honest, we feel like we are -- we see the similar situation in the s&p as well. now, it's going sideways. th