Transcripts For BLOOMBERG Whatd You Miss 20171002

Try to run down an fbi agent with his car in las vegas in 1960. He was on the agencys most wanted list after escaping from a federal prison in texas. He had been serving a 20 year sentence for a string of phoenix bank robberies. He died in 1998. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Julia life from bloombergs World Headquarters in new york live from bloombergs headquarters in new york. Stocks are high today. Whatd you miss . Scarlet President Trump plans to visit las vegas. He heads to puerto rico first. Across the atlantic, spain faces its worst political crisis since the 1980s. The rest of the European Union stays on the sidelines. Julia whatd you miss . Washington is reacting to last night shooting in las vegas. President trump led a moment of silence. Some democratic lawmakers are calling for more federal gun control. Let us bring in megan murphy. Where do we go with this . The president try to depoliticize today. Tried to depoliticize today. Megan we will see a again this dissection of who this man was, what were his connections and his family background. It is really a source of looking so intensely at what he was, who did he know, how did he get access to weapons. There were many in his hotel room. It will reignite this debate. Statement wass much more somber than he had given. He was visibly shaken. As this goes on, it will be politicized not for want of political points. It is one of the most hotly debated issues in our time, axis two highpowered weaponry access to highpowered weaponry. Took aesident trump pretty standard republican line on gun control during his campaign. There has been skepticism as to whether this is one of his deeply felt beliefs. He had views on gun control that were befitting his different views over time. Do you think it is plausible his inclination is not to take the hardline . Megan during the campaign, this was early in the campaign of lighting up that support. Of that support. In terms of conversion, having also covered president obama, president obama was quite candid that his response to these kind , that the failure of response to pass comprehensive Gun Legislation restricting ownership was what he considered something that broke him. The scale and horror of this incident, the images we are seeing are quite shocking. President she demeanor. We have seen this time and time again. Just doesnt happen. The house is going to vote for curbs on silencers. Or at least they were. Is that still a priority . Soan this playbook is wellworn. People will bring up legislation. Legislationartisan out there to increase controls on background checks. Politicians get accused of politicizing death and these incidents. Always think that when we see itmething of this scale will be interesting to see what kinds of weapons were used. Whether they were semi automatic, or a modified semi automatic. The shots were so rapid. Know this comes up for several weeks. , theyre families going to be affected for the rest of their lives. So many of them become advocates and we see no change. We start off by saying what the motive was of the gunman or what the background was to these events. People died as a result of some form of higher art activity. Firearm activity. Two thirds are suicides. This issue packs far deeper than what were looking at. President trump rolled back some legislationmaera that restricts Mental Health access to firearms. Megan it is very difficult to separate the two. This was a lone wolf shooter. We dont know the motive. It is a strange case. A seemed to have lived relatively quiet life. Very little known on social media. We should emphasize how difficult it is for any Security Service to protect against these type of incidents. He hammered out to windows on the 32nd floor of a hotel and shot into a crowd of thousands of people. It is so hard to protect against these incidents. Health to couple mental funding and research when we talk about begun debate. They are often intertwined. About gun debate. They are often intertwined. Scarlet the president is still going to follow through on his plans to visit puerto rico. He has been criticized for not responding quickly enough. Certainly when you compare it to harvey or irma. Ofan these are the kinds weeks that presidencies are on or flail on. There are questions about his attempts to deal with these types of actions. Note, not overtly politicizing. The challenge is just beginning. Parts of america are hurting. Hearts and minds and testament is hurting in puerto rico. Scarlet thank you so much. Coming up, catalonias independence referendum raises questions for the future of spain and the European Union. From new york, this is bloomberg. Rhenium of catalonia held. Despite pushback from the Central Government. Governments images stunned the world. Reporter joins us from london. Iny didnt get the votes 2014. Despite the images we saw over the weekend, the Central Government in catalonia is saying 90 of people voted for independence. Governmentssh response galvanized people to make a stance . That is right. The main difference between todays vote and yesterdays saidis that the government yesterdays referendum was valid and binding. Of largescale deployment riot police resulted in widespread clashes. They failed to prevent the vote from taking place. Joe what is next . Megan referendum was deemed unconstitutional. Failed to meet basic standards for democratic elections. The Regional Government considered the vote to be valid and binding. It is determined to act. What will the Regional Government do next . You are probably looking at a declaration of independence. This is a mainly symbolic act. It doesnt declare legal implications. But this would invite even more forceful response on the part of the Central Government. Why are you so confident we get this unilateral declaration of independence . There was cautiousness. Do think officials feel forced into it . I think the Prime Minister doesnt want to rush into any unilateral move. This was never really in the cards. No one expected the European Union to negotiate with the governments and break the constitution. This is tactical. The logical next step is a unilateral declaration of independence. It is likely we will see this taking shape over the next few days. If those in catalonia are in favor of secession, what about Public Opinion outside of catalonia . Is their support for independence . The federalush government into a compromising position . Federico hardly. Public opinion in catalonia and the rest of spain is polarized. The Central Government has a nationalist base. They are opposed to granting catalonia greater a time to me. My. Greater autono we are at further escalation in the crisis. Far from any kind of easing. Joe as this issue continues, how do you expect other leaders in europe to react . The images coming out of the country are stunning. The last thing they want to do is open a pandoras box of various regions. How do they handle this . The Regional Government is winning the media battle. This puts european leaders in a bind. They dont want to be seen as endorsing a government that is using violence to prevent people from casting a vote, but they cannot recognize the vote deemed unconstitutional. They were very clear in refusing to play a mediator. Julia if you leave spain, youre going to have to fight. They dont want anyone else to break away. What argument was being made about the access to Capital Markets and being in the euro if they didnt leave . Any kind of unilateral that does not follow the Legal Framework will be hugely painful for catalan and the spanish economy. They can blackmail the government to preventing this catastrophic scenario. Coming up, we will take a look at citrix systems. This is bloomberg. It is time for the Bloomberg Business flash. Has set upus countries at a temporary store in new york. Shoppers can purchase merchandise. The move comes after a failed ipo and seven quarters of declining samestore sales. It is said to be an attempt to replace ecommerce with brick and mortar. Daniel pinto is heading over s european andit africa business. Facebook is making a series of changes to its advertising systems and plans to add more than 1000 people to review its advertisements. This is an the wake of a congressional investigation into russias involvement in the 2016 u. S. Election. It submitted 3000 advertisements to congressional investigators. That is your business flash. Scarlet it is time for the stock of the hour. One of the top performers for citrix systems. Let us find out what is going on with abigail doolittle. Have i. T. R i professionals, that comes up. It is a Large Software company. Citrix installs applications. It is a legacy business. It is also getting into the cloud. We have a good visual of what this looks like. Fa function in the bloomberg on citrix. 46. 4 back in of 2016. The bulk of the revenue is traditional software. Product placement is more a la carte. License updating. 24 software service. That is the cloud. Professional service is a 3. 8 . Is 3. 8 . The shares are on pace for their best day since may. This bottom line could more than double. Could come revenue through and forced immigration of customers. And forced gratian of customers and force migration of customers. Joe could this be a target for a larger player . Abigal earlier this year. Bain capital might want to take them out. But it could also go private. Scarlet what about valuation . Talk about the breakdown and how that plays into the mood. Abigail valuation is very attractive. Let us show the bloomberg. Function. Systems trading at 834 discount. 4 percent discount. Citrix systems is closer to that highend. But it is trading to the low end, by minus 25 . Another piece of this, the pop higher for citrix. Scarlet thank you. Take a look at the major indexes with lets less than four minutes to go before the close. By 127. Up positive start. On dow, s p and Nasdaq Record highs. With the dow adding points in the session. Tuning in live on twitter, we want to welcome to you your coverage every weekday eastern. To 5 00 p. M. Scarlet record highs all around. Nasdaq anding at least third one percent. Winner up. 71 . Manufacturing. N joe really solid day today. The higherf continues. Scarlet beneath the headline numbers. Take a look at the individual movers. Casino names. Mgm resorts, both resorts,ourse mgm owner of mandalay where the shooter was standing before he thisd gun on himself, typically does happen after a names ofwhere you see companies affected in the short term. Highlight pe pepsico which declined. Motors getting a boost here. Better than 4 . Pledging to sell 20 all electric vehicles. Withing electric by 2023 20 all ed cars. Joe lets take a look at the Government Bond market. A ton of action happening in the u. S. Today. 149. Ur yields unchanged, ten year yields ticking little bit higher. Not much there. Not surprisingly in spanish Government Bonds. Spreads hidening after the incidents ina catalonia. Government cracking down on the referendum. Extraordinary early low. Term, seen at a long incredible depression over the years. Nonetheless, little bit of anxiety creeping into spanish. Preads alia that anxiety leading to tone in euro dollar trading. Its lowestalling to in around two week. 13250 there. Rt prime Minster Theresa may speaking tomorrow. Rallyllar continuing to it began last week. Risingufacturing index to the highest level its been than a decade. Bit of dollar continuing. You quick chart you a sense whats going on. You can see on the right hand side that chart, the dollar there. Ittle is you a sense whag failing to impress some of the hedge funds and other names who bear on the currency. If it continues to stay flat, to a squeeze anyone in the dollar . Joe for eye on that. Finally on the commodities front. Bit of selling interesting. That 50 ang back torel level down two percent 50. 54. Gold sort of keeping all the modest selling and treasuries risk. F the down less than a percent. Recently it was for 1300 an ounce. Its been fading in the last couple its a little bit going on with this trade. There was that trump trade 1. 0 can call it. When you look at the index chart, its still playing little catch up. Which has a lot of people just saying, heres one point in the chart, heres now. Keep catch up in performing. So far they are right. This morning when nasdaq was dive. A it was a big reallocation going on. Part of that is lets buy the companies that pay higher taxes now which is caps and lets go with that. Im in in frame of mind now, two on, perhaps part of chasingalso investors scarce growth. We have 3. 1 in gdp now in q2. Well see how that evens out irma. Arvey and q3did see some upward to because that strong ism number and strong construction spending. Im skeptical. Joe i want to ask you, its that the fed begun to wind down and looks like theres a good chance the fed hike in december. Thats more hawkish than people thought they were going to be. Ago. A few weeks it doesnt matter. The markets dont care even with edging to thes hawkish side of things. Of time the Federal Reserve was data dependent. Saying since the crisis, the fed and central dependent. Arket were seeing that now. Look at this, few weeks ago we the announcement. Yes were going to start the Balance Sheet run off in october. Bonds done . Kind of boring. Flat. Are looking were pointing this out earlier. Where it isr yield in u. S. , as opposed to spain, the country might be falling apart, youre getting 33 beats for five years. Do you want to buy here . The bond market seem under control. Feds feel like it has lee way to raise rates in december. Came out, janet yellen said we should be more aggressive. The market shrugged that off. The market doesnt seem to care. Saying, okay, theyre going to raise in december, again. Oing to see joe i want to cut in. We have a little bit of breaking news on tesla. Coming out with this q3 sales. This is earnings report. Terms oflume report in the number of cars. Production, 25,336 vehicles. Delivery, 14,000, q3 just 260ee production vehicles. Massively to ramp up to meet expectations. We see the mark response to the number. Not much reaction. Heres a headline. Tesla model three production is less than anticipated. Than is notable. Model three production of 260. Entire question with this question is how fast they can production and how much theyll need Capital Markets to do this. Kind of interesting that at it point, its getting off to a slower start than they hoped. Weve seen massive market reaction, down 1. 8 . Saying theres no fundamental issues with model three production. Its taking longer than they anticipated. Which probably isnt a huge surprise anyone has been following tesla and the rollout of its vehicles. Julia they declined to have the considered for the car. American couldnt spare the prototype. Joe more on teslas numbers. Welch,to bring in David Bloomberg news. Detroit bureau chief. Of of this make comment from tesla about the up . Of its model three ramp we had to expect that it wasnt going to go smoothly. Getill be tough to production up fast. There are some bottlenecks. Expected. Be nothing actually wrong with the production system. Numbers are so install small now. Were looking at whether or not they can get up to bigger numbers they predicted by end of the year. Early looking at production where theyre trying running. E lines the market would like the fact very well. Del s did people arent avoiding those get the and waiting to lower price model three. To sell all three of them without trouble. I think investors will like that bit. A how the model three doing, aobably 4th quarter will be much bigger deal. Julia theyre addressing the manufacturing bottleneck issue. Do we have any sense of what those bottleneck issues specifically are david . No. Ondidnt get a lot of detail that. It could be with players. They dont have all the parts. The factoryin itself. Got to give them a little bit of on thisof the doubt one. Its very early. Side of it is, theyre always late on close to getting time. Es out on hitting production targets and getting the likes moving. This. Ors are so used to maybe it wont be a problem. Joe just going to say, the stock, it is selling off a after hours. But for the most part, it doesnt look like investors are punishing the company too much this news. Is this just an indication theres still so much confidence in the long term picture. Punished for be hiccups in the early day requests of i think thats right. About 2. Up for tesla thats not a lot. At this, theyre a bottleneck, its early days. Themore expensive vehicles established cars they sell are still doing well. Wait, is avoiding those, if the model three instead. Theyre buying 100,000 model s cars. Julia more broadly on this story. The competition is coming. Your take on gms comments earlier. New all electric 2023. Es launched by tesla had all of these guys pushing to have equivalent the market. Should tesla be concerned . They should. Enjoys the fact that there arent many electric cars out on the market. Are out there are pragmatic. Ranger is great, they are not as fast and sexy looking. Those are cars engineered to meet the regulatory requirements california and china. Youre going to have real cars. Compacts. Mall you will have sport cars and suvs and stuff that has a lot appeal coming from porsche, cadillac. Ral motors, you will you will have lot of vehicles targeting teslas wheel house. Somebody will take a shot at that. Joe its Bloomberg News bureau chief in detroit breaking down the tesla news for us. Thank you very much. Scarlet were with michael block. Sorry for the interruption. When we were talking about tess i thought what jim said. Tesla more than any other theany is poster child for hope and dreams of this bull market. We saw how the numbers came out with the production. Little bit subpar. The stock is maybe one percent. Sitting onll you by the trading desk. You can look at the stock. This isnt a big deal. Im think being this. Looking at gm, the gm chart, gm keeps going. Last week there was a research call, came out of hibernation, said, gm is the middle of Autonomous Vehicle revolution. Lets buy the stock. Where were you all summer . This morning you had another upgrade and this announcement about the electric vehicles. Thats great. Wonderful. Lets think about this. Look whats going on in puerto houston justple in dealt with. Here we have this boutique vehicle,is luxury model s coming down in price a little bit to tesla. A lot of electric cars. The world has to be ready this country has to be ready for electric car. Do we have the infrastructure to deal with this. Car in puerto rico and houston was electric . What happens then . Policymakers thinking about this these things . Is the world ready for this . We need to buy these stocks and buy them up. Tesla, buy more gm. Swell. See what happens. Is here, not everything happens at once as someone investors im weary of that. Maybe you should come back here minutes. Julia i want to tie this to the value versus great debate. I read your note from last week where you were saying, certain people on bloomberg had been looking at the growth versus have to be careful because of the crossover. You said, you need to be looking at the pure which separates the out. Just talk us through this. What we should be looking at . That was more of a reality check. Joe sent email in the morning, the five things were looking at. He was commenting on this. Joe, who is this. This doesnt match my numbers. Match back. There was a value index and russell growth index. Russell 1000 value index and ofwth index, theres overlap nearly 300 names. Russell realizes few years ago, created these pure indiecies. Theres any number of reasons for that. Were still watching and waiting. Thats going to work at some point. Im still growth camp. Today was not a good day for that. Getting beating up. Agenda. An they had a program. No it knocked it down. Apple ateing the batteries doing this, bad this and bad that. Story. Telling us a im still nasdaq bull here. Alia michael always pressure. Thank you for that. Joe thank you for the news toter plug and before we go break, i want to correct a fact tesla. Q3 deliveries were 26,150 and produced 260 model threes in the quarter. Ism new york, this bloomberg. Its time now for first word news. Mrs. Trump and Vice President and mrs. Pence stepped on the south lawn of the tote house this afternoon moment of silence for the victims of last night shooting in las vegas. There were such shooting in u. S. History. The president called the shooting an act of pure evil. At 58. Th toll stands over 500 were wounded. First lady arend scheduled to travel to las vegas on wednesday. U. S. Homeland Security Officials say there is no specific credible threat involving other venues after last night shooting in las vegas. Identifiedhas 64yearold Stephen Paddock. He died at the scene. Life. K his own paddock fired from the 32nd floor of of Las Vegas Strip to outdoor Country Music festival. Notwhite house says this is the time to renew debate over control. White House Press Secretary Sarah Huckabee sanders was asked during the press briefing about theres a need for stricker Gun Legislation. Said President Trump is focused on the victims and stress it was a time to unite the country. Tom petty, the rocker best known man, has died at the age of 66. Cbs. S according to the legendary musician suffered cardiac arrest and was found unconscious and not breathing in his malibu home. Taken to ucla santa on lifeospital and put support. Of 66. Ty dead at the age im mark crumpton. Bloomberg. Julia 1 trillion dollars change of heart. President trump is waiver on the of Public Private partnership in his infrastructure plan. Raising new questions how the funded. L be when is the president consider increasing federal funding for project. Problem made more difficult by the tax cuts proposed by the trump administration. Us now is Bloomberg National political reporter live from capitol hill, sahil kapur. I want to focus on the tax reforms that the government spoken about. Focusing on the tax policy. Theres some eye opening suggestions from this. They are suggesting this plan result in tax increase for almost 30 of individuals with and 150,000. N 50 no wonder members of the fightingn party are back against this study. Right. Heard from senator rand paul a libertarian from kentucky who displeasure with the plan. That 30 of people in the income you cited would see tax increases. Average, will see their taxes go down. It is a minority. Youre talking about that income range and the promise that President Trump made as a for little stand up guy. Its a complicated position. May lose outp that as tax bill rise in the republican plan well to do people in high tax blue states. State andlose their local state tax deductions. Willing tocans accept tax hike on some people. Means punishing liberals and blue state elites . That is one pile of cash that they have. Some level of consensus, if not anonymous to go after. About 1. 3 trillion extra in the federal treasury over a decade. Eliminate state and local tack taxes. Is concentrated in new york, california and new jersey. Politically its one of the go after. Uctions to they have about 28 house in thosen lawmakers three states. Some of them are already pushing this. N its not going to be an easy thing. This is how tax reform proposal past. Ied in the it remains open question what happen. Scarlet theres at the do going on in washington. Pushing ahead on tax reform as well as the president in puerto rico. Fall out in las vegas. Ceo will beformer making a trip to capitol as well. Perceived in washington who will be interrogating him . Coming in the early portions of it. More criticismew on them. Well see lawmakers from both sides very angry, very upset. The theater speck of it. More important thing it what policy will come out of this. Hear some hints of this at the hearing. There are democratic proposals the senately in senate by elizabeth warren. Theres some talk removing the print for the people affected in the equifax proposal that end up charging them more in the future. This is a big question for the republicans. Washington. They depended to be the party. Ation live fromil kapur capitol hill. Thank you. Coming up, puerto rico struggles the aftermath of hurricane maria. Should we expect exodus of and mainland ofnd the united states. This is bloomberg. Mark im time for first word news. Theres never been a mass shooting like this in modern history. A gunman hiding in a las vegas fired lastotel open nights on thousands of people gathered for an outdoor music festival. Least 58 were killed more ton 500 others were taken hospitals. Police storped the mandalay holt in casino. Suspect killed himself. Hes been identified as Stephen Paddock, a 64yearold from mesquite, nevada. President trump address the thisn from the white house morning. Evil. Was an act of pure the fbi and the department of working security are closely with local authorities to assist with the investigation they will provide updates as to the investigation and how it develops. Mark the president and first vegasill travel to las wednesday to meet with rel and first responders. Former arizona congresswoman knows thegiffords she horror of gun violence. She implore lawmakers to take shootingter the deadly in las vegas. In ands who was wounded assassination attempt. Spoke out today. Her husband. Bid she said the nation is counting on you. Nevada resort to up where Stephen Paddock lived, by his home was searched investigators. The local officers never had contact with him while he was there. Paddock lived in a three bedroom a successful desack in a retirementn community. British prime Minster Theresa asked why she hasnt fired boris johnson. On email on brexit. Thebehavior is in spotlight. Mays big job will to be show in control. Crumpton, this is bloomberg. Julia thank you. Keep your friends close and enemies closer. British conservative party is its conference in manchester. The conservative Party Conference in manchester in the north of england, the u. K. Chancellor, Philip Hammon he made a speech. Light on policy detail. He was heavy on reference. He described rival labor as a and presence danger to prosperity. Meanwhile lot of the chatter at the conference has been around the leadership of the conservative party. The cabinet really all on same page around brexit. Are they not a nest of singing bird. Boris johnson the former secretary. He sent out another high pro u. K. Newspaper. Hes red lined around brexit. Wants then whether he prime Minster Theresa may job wont seem to go away. Turns to subject of brexit. Ofll hear from three leaders the campaign. England. Manchester scarlet here in the united totes, we equity climbing all time high outperformed by cap measures. There are gains of 152 points for the do you. Manufacturing data today. Support sentiment julia Puerto Ricans have been mainland for decades. It will be more difficult than expected. Thetion is will this be place where Puerto Ricans sett settle. On. R sen great to have you you think hundred of thousand of people will leave puerto rico. What does that mean for puerto rico and the Recovery Efforts there . But also for the state upon people move to . This is really not a very beenr idea because its happening over the past several years. The population of puerto rico by 9 . More than that, their labor 20 . Shrunk by people working and have opportunities are choosing to leave. Not only do they make their building process more difficult because you dont have enough people around. Have more centers in the u. S. Will have Puerto Ricans that become more attractive to. S to move scarlet Puerto Ricans historically tend to go northeast to new york. Increasingly theyre heading to some of the southern states, florida and georgia. Youre based in atlanta. This is a city thats been growing quickly. What is the ability of a city absorb a large number of people coming in. Can Housing Support that inflow . Infrastructure support that inflow . Housing is one advantage we traditionale northeast cities like boston, philadelphia. Florida just given in size and proximity to puerto rico is attractive. Here in georgia, you have Second Generation Puerto Ricans who might move to atlanta. It makes it easier for family to . At first. Joe as you point out, lot of ricanstates that puerto may move to are extremely close states politically. A state that you predict lot of Puerto Ricans to. Up moving it wouldnt take much to swing that state from red back to blue. Since 2010, the puerto rican population of pennsylvania has 78,000. D there are 450,000 Puerto Ricans in the state of pennsylvania. Decided in 2016. We dont know what the partisan lean or Voter Registration percentage would be. Anger at the Administration Response to the puerto rican hurricane, perhaps in 2020. Be a factor scarlet we had breaking news tesla. The vehicle delivery rose in the 3rd quarter. In particular. Model three cars we got 220 of those vehicles. Those were shipped out total deliveries, 26,150. Joe conor lets talk about tesla. Thise been watching company for a long time. Prospects see their being a survivor and a meaningful player in the world cars . Ctric its interesting over the past five or six weeks weve seen dinosaur of automakers. Some of that had to do with car in houston. Now theres bullish around electric cars like gm. Be producing lot more electric cars in the future. If gm is all of a sudden will be competitive player in electric vehicles, tesla will be able to maintain that advantage that now . Have joe there are different ways you can think about it. Designers,reat car they will be coming occupy really cool electric cars. Teslan think this is the model three is the iphone and all these other cars are going the zoom. Hp version of the ipod. Other things that flopped. What kind of market do you think like . L look next year looks one way. After that it will look different. Tesla is only game in town. Tax credit. Ave a that tax credit will be phased year. Er the next audis and bmw and lexus will in 2019ving their cars and 2020, theyll have the tax loses theirs. Sla are you still going to want your a taxthree without credit. Scarlet tesla sales was 260 model three units. Car counts. Have to be either or for the likes of gm. Versus, tesla whos already in the market that doesnt face that much competition . Can they both divide and excel here . I guess we dont know what long term profitability looks like for electric vehicles. About so heavily subsidized. Batteryill investing in technology. Other angle here, if those ready to take off, one argument is vehiclesave so many idle most of the day. Thats unanswered question. Seems like theres so much sides. Ness on both scarlet conor sen joining us from bloomberg atlanta. Coming up. Goldman sachs talking about a trading operation currencies. Just after jamie dimon called fraud. A what do other banks think of those currency. This is bloomberg currencies my give existing currencies and Monetary Policy a money. Their i have special concerns about virtual currencies. Of the secrecyse factor. We worry about language crash transactions because large cash use for that be use purposes. Well see a bitcoin last if a bubble or not. Were paying attention to it. I dont see it as a credible competitor to the dollar. Theres only one dollar. The largesto be bubble of our lifetimes. Remember, bubbles happen around things that fundamentally change the way we live. The railroad bubble, railroad is wedamentally changed the way live. Ed if we have a trade who trad bitcoins fire them immediately. For two reason. Rules nst our fascinating development. Its something more than just a fad. Interesting for the privacy it gives people, interesting because what does it say to the central Banking System about controlling that. Seems to haveone currency. Out crypto Goldman Sachs is looking at currency. Tcoin what did you learn about Goldman Sachs . Understanding its pretty early in the process for them. They are going out and talking to people in the crypto currency morestem who know a lot about bitcoin than maybe some people they have internally. Just trying to explore what it bitcoin. N to trade joe we this that string all peopleig institutional talking about bitcoin. Famously, its not easy to hold key andose their bitcoins get frozen and stolen all the time. Possible they see an opportunity in a simple way to ofd it without a lot headache . Its quite possible. Holding. Mething thats bitcoin being held back. In the conversations ive had folks, they do not necessary some of the people who havent gotten into bitcoin some ofworried about these concerns that you brought up. That maybe one avenue. Another one could be to the etfs, derivatives built currencies. Ese julia whole point about this. Provides. Ity it very good question. Thats one of the things that gormedman has goldman explored. Banking is regulated. Bitcoin is not regulated. Julia you pay taxes on it. They have to figure out how to thread the needle there. Julia after all the fines these faced. Trading across sanctions, you have to have your head in your hands the potential damage that could happen here. Joe thats w. The questions. It. Rget who said this is used for drug and this terrorism. Circumventing capital control in currency. Est in the to be will way to provide the in this mark. I would think so. On the same hand, one of the from there we heard was former goldman trader whos raising hedge fund to trade these things. A client bases goldman toor service. They are exploring how to do the within the bounds of rules. Julia you say two to three officerse chief tech in the banks have been talking blockchain ing in they didnt want to be called behind. Eft Blockchain Infrastructure could be used. Do we separate that out . Feel like with j. P. Morgan, there, jamie dimon find myi will fire if i staff trading bitcoin. Is this Bitcoin Trading separate from the blockchain investments that theyre talking about. Its very separate. Much of wall street, if not a of wall street has been exploring blockchain for a couple of years. All these banks have investments in various start ups. As one that theyre invested in, citigroup is in there. As we think about it, its best to think about it in two categories. Joining us. You for scarlet it is time for the Bloomberg Business flash. Goldman sachs Asset Management will pay for bleachers used by European Investment management teams effective january next year. Thats according to a statement today. Budget for the research was not included. The new joining rules forced fio cost fromesearch trading related expenses. Bans lenders for charging for research. Filed forse bankruptcy in may. Company reactors changed the industry. They are considering a joint bid. Group of hedge funds reportedly collecthe rights to 2. 2 billion guaranteed by in southuse toshiba carolina. Its official, John Flannery is the board at general electric. That is three months earlier than expected. Had proceeded smoothly. Billionaire chairman and brad jacob looking to spend 8 billion dollars in professional acquisitions. Thats after the third biggest public traded Logistic Company pushed nearly 15 billion in revenue last year. The stock is up more than 300 than 500 over five year period. It is said that large Trading Companies could be potential targets. That is your business flash update. Julia we have some breaking news here. Headlines on equifax. I want to bring those to you. Equifax reporting size of the Security Firm they brought in to have a look at the assessment what happened with these breaches has concluded. Potentially impacted u. S. Numbers have increased 2. 5 million thats in addition to 143 u. S. Consumerrers we were talking here. Theres no evidence that the databases within equifax. About canadian consumers. Number. Massive julia an additional 2. 5 million involved. Entially from new york, this is bloomberg. Scarlet whatd you miss . Rally. Bal equity it is live and well. Just completed a sixth straight quarter of gains. Is a creditne barometer. Ofch measures the cost bullish. You can see especially in that latest leg down, decline. Its fallen three straight week. Its now at the lowest since february. 2011. X dropped since why isnt there volatility . David hunt. There are under pinning to this bullishness. Its the Global Growth that were seeing. Quite one sided seeinged dollar rally. Weve seen yields bounce as well. Thisim showing you in chart, the slight dollar value that weve seen since the of september. Well. Line here as what you can see, basically given the difference what we saw in the backend of last year. Saw that huge curve steeping in 2010. Seen that in september of this year. This negative correlation between the two speaking what the dollar does here. You got kind of fundamental here for the dollar rally that weve seen in september to continue going if curve stays flat. If we do see a stronger dollar, mean for merging market . Joe still ways down from why we earlier. Heres Interesting Data from isms, whitethat line here. Hitting its highest level in 13 years. 60. 8. This is a measure of the survey manufacturing industry. The blue line, the prices paid up 71. 5. Good headline activity perhaps inflation there. There is a caveat, the storm may some of an effect on the subcomponents that might have affected prices and delivery time. Well have to see if it continues. Nonetheless, data in the u. S. Looking pretty solid. No real major weaknesses. We got that jobs report on friday. Very excited about it. Scarlet that will be distorted. Dataant say that when the is bad because of the hurricane. But when its scarlet whatd you miss . Record highs. What is coming up . Australiae bank of will be announcing its Rate Decision tonight at 11 30 p. M. Eastern time. The i will be watching for former equifax c. E. O. Testifying before Congress Tomorrow and wednesday about the massive security breach. Julia dont mess this. President trump heading to puerto rico tomorrow. Scarlet that does it for whatd you miss . Julia Bloomberg Technology is next. Next. Next. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Alisa i am Alisa Parenti in washington and you are watching Bloomberg Technology. At least 58 people were killed and more than 500 wounded after a gunman in a Las Vegas Casino hotel opened fire at an outdoor festival. Some were hit by shrapnel. Others were trampled in the panic. The gunman, identified as Stephen Craig paddock, had as many as 10 guns. This is the deadliest mass shooting in u. S. History. The shooters home has been searched by investigators. Local Police Say Officers never had contact with him while he lived there. Detectives are still trying to determine a motive. Islamic state has claimed responsibility. But the f. B. I. Says there is no evidence to support that. The white house has ruled out talks with north korea over its Nuclear Arsenal after secretary of state Rex Tillerson said washington and pyongyang had opened channels of communication. Sarah sanders said now is not the time to talk. The Supreme Court kicked off its new year with Justice Neil Gorsuch onboard three for his first full term. They are taki