Puerto rico that he will always be with them. You said that the federal government cannot keep sending help for ever. He took a softer tone today, saying the wonderful people of puerto rico have an unmatched spirit. Reenter the elections, if the government and the Electoral Commission accepted reform. Challenge lead the court to a null the election over irregularities. Global news 24 hours a day. Live from new york, this is bloomberg. I am abigail doolittle, in for julia chatterley. Scarlet i am scarlet fu. Joe and in joe weisenthal. But the question is whatd you miss . Taking President Trump a harder stance towards iran. He stopped short of pulling out of the Iran Nuclear Deal. Meanwhile, the health care in this tree dealing with the industry dealing with the present proposition to stop obamacare insurance subsidies. We will speak with michael nei dorff on how insurers plan to cope. A surpriseargo with 1 billion charge in the third quarter, causing them to miss estimates. Josh was very joins us with the outlook. President trump is taking Health Care Overall into his own hands after measures to repeal and replace obamacare failed multiple times in congress. President trump abruptly announcing that he would cut obamacare of subsidies, sending shockwaves through hospitals and insurers. Michaelneidorff joins us government, california by the phone. Thank you for joining us. One of the reasons why your stock is down so much, you are thatf the few insurers remained in the Affordable Care act marketplace. Let me back up. This is not something that just surprised us. We anticipated that this could happen in probably would happen for some time and plan for it, and despite the removal of the below 400 ofuals the Poverty Level, which is our sweet, where we focused, still have access to be subsidies and that is in legislation that is not subject to executive order. So, we saw that. Proceeded as though he would remove the csr frock, and we put in place the necessary tracking that if for some reason it does get reinstated through legislation or some other action, then we will be able to identify what the refunds are. This is our business. We have anticipated and plan for it. It is business as usual for us. Joe michael, as you state, this is somewhat expected. You plan for it. It does not directly affect the sweet spot of your customer base. Looking out a few more years, is the structure of the Affordable Care act such that it can continue if there is no bipartisan action to shore up the market and stabilize it . I think the vast majority of people who really need it, they are there. We have worked quietly and not in the public eye, we have talked about what needs to happen and changes that are public policy. We are focusing on the policy, not the politics of this. There are things on your shows we have talked about in terms of and how the subsidies to put the csrs in for the insurers. So there are things that need to happen they can improve it. And we are working through what will happen in three years. Theres a lot that could happen between now and then and we have always had the policy of making decisions aced on the here and now. Scarlet mike, it sound like you are not totally surprised by this executive order, but would you consider this the beginning of a death spiral for the obamacare exchanges, and can you explain to our viewers what a death spiral is in this particular case . It is being reduced and you only have the most unhealthy people, not the younger, healthier people, a more balanced book of business. It is too early to say if it is a death spiral. Clearly the administrations said it is their objective to unwind the Affordable Care act and they have done some other things to try and do that. They stopped advertising, they reduced advertising by 90 , they cut back the number of navigators. And i have not confirmed this, but i have been told that they are shutting down the enrollment process between 12 noon on sunday and 12 midnight, when a lot of people do you enroll. I would hope over time we would still find ways to continue to protect this most vulnerable , the individuals under 400 of the federal property level Poverty Level who are working and uninsured or under insured. Its the only vehicle we have for now to do it until we find a better way. Joe michael, we are talking not only about csrs, but another action the administration took, making it easier for people to buy Health Minister associations, which in theory would allow healthier people to leave the market, leaving the only people in the market for me the more expensive, premium of plans. Is that something also you were expecting . Are you see that having a material effect on premiums for people who remain in the exchanges . Think it is early to say. We have seen policies of this nature. They tend to not have been the most successful be from a cost standpoint. I think while you can say we are i believeo this, there are three different regulatory agencies that have to, with regulations around this. This,til you see all of to try and prejudge, it goes back to what i have always said. I believe the groups that are there will come up with responsible regulations, but lets see it. Lets make decisions based on what we have here and now. Until we see that, it is speculation. Scarlet what is the level of conversation youre having with other Insurance Companies that have remained in the obamacare exchanges, such as molina . Are you talking to them and working through these challenges together . Know, we are very careful. You have to be very careful what you talk about. I believe that there are antitrust concerns. There are those that have capabilities, like us, to talk about how we can coordinate things through health plans and other groups and individually to coordinate it, but i want to be very careful from an antitrust standpoint. Abigail if 90 of your members are eligible for subsidies, how expansionimpact your plans . I believe youre planning to grow in six of your established markets. Does that change at all . I see no changes. We still have the advance premium tax credit and other things for our population. Planningo through our process. We will give guidance. And as we go through this, we will make those decisions, and i want to emphasize also, this has a long way to play out. Lawsuits,injunctions, i this thing, as i said, would not presume it will be just as it is today. michael, big picture there is increasing anxiety about the share of the economy that Health Care Takes up. There are concerns in the future, whether it is private planes, there will be extraordinary asked and spur health care. Expense fornary health care. Do you see signs that there are structural changes being made so costs go down over the longterm . I think clearly there signs of that. I would comments with the actions being taken, contrary to be desired action of decreasing insurance premiums, it will increase them. Theres a lot of technology coming into play. I will give you a quick example. We have a system, a big data system that goes through a million files in five minutes. Potassium has decrease, they can look at that, they see he has a potential for a heart attack. When you look at personalized medicine, how they treat things, how they handle the diagnostics, while all new technology is expensive when it first talks starts, we have seen how it tends to bring cost down. I am hopeful and somewhat confident that in the ensuing years, if we are smart about it, we can bring costs down while continuing to improve the care, but you dont do it the way they just did it in the short term by increasing the cost. Great insights. Formally putting iran on notice. He says the country is not living up to its part of the deal. What does this mean for the future of the deal . We discussed next. This is bloomberg. Whatd you miss . President trump says that iran is not living up to the spirit of its nuclear deal. President trump in the event we reach a solution working with congress and our allies, then the agreement will be terminated. ,t is under continuous review and our participation can be canceled by me as president at any time. The iranian president said that one country cannot dictate the terms of the deal. We are joined now by robert senior fellow from the brookings institution. Thank you for taking your time. The comments from President Trump this afternoon were largely expected and it sounds as though he is saying we will terminate this deal if congress does not act within 60 days to make changes. Is he looking for and how does his feud with senator corker in particular affect the possibility something can be worked out in congress . Robert well, as expected, as president didhe not call for pulling out of the deal. He is not going to ask congress within the next 60 days to suspendedanctions under the deal. Instead he has identified a number of specific conditions that would have to be met in order for the United States to remain in the deal. He has said that his administration would work with the u. S. Congress, with u. S. Allies, to strengthen the enforcement provisions of the that iran does not have an Intercontinental Ballistic Missile capability, and to make the Nuclear Restrictions of the iran deal permanent, and as your clip we cannot he said if reach of solutions on these particular problems, then he will terminate the deal. So the deal remains in place for now. Clear thatmade it its future is very uncertain, and this will be very inert thing too Many American allies very unnerving to Many American allies. Nowlet yes, unnerving and it depends what congress does. Whats the likelihood of congress reintroducing a bill to effectively put sanctions back on iran, especially with rob corker at the helm . Robert i dont think the congress will act to reimpose sanctions at this time. Under the Iran Nuclear Agreement review act, after the president refuses to certify the agreement , congress within 60 days can vote to restore sanctions. I dont think it will do that. United democrats will be in not wanting to restore sanctions and i think several republicans also. They are looking at the restoration of sanctions blowing up the deal. I think senator corker and senator cotton are working on different legislation. I think they will try to adopt a law that will insist iran alter the deal in a number of ways the president identified and if iran is not prepared to alter the thosen the subways in ways, sanctions may be automatically triggered. I think corker and cotton will have a difficult time getting the 60 votes that will be needed to enact that legislation. Is there any prospect of fundamentally changing the iran deal . Think in thet near future there is any prospect of reopening the deal and Getting Better terms. The iranians have made very clear they are not going to reopen the deal. The europeans of said they like the deal, its working, they dont want to reopen it either. Time it may be possible over a few years, it may be possible to address some of the shortcomings of the deal for example, right now, key Nuclear Restrictions expire after 10 and 15 years. Can beran, over time persuaded to defer some of those expiration dates. Perhaps they can strengthen some of the monitoring provisions. Perhaps it is possible to persuade iran not to pursue an icbm capability. But i think that those adjustments would have to be made over time and iran is not going to accept them simply because of threatening sanctions. If we wanted to make those adjustments, the United States would have to offer something positive, such as further relaxation of sanctions. Scarlet yeah, those provisions certainly pop into front and center for the white house. , senior fellow at the brookings institution, thank you for joining us. Coming up, amazon is looking to open its own line of sports apparel. Our stock of the hour is next. From new york, this is bloomberg. Is time for the Bloomberg Business flash. Jpmorgan chase prelate jamie dimon has a few more sense in big one. He explains how he really feels about the currency. Jamie dimon i could care less about bitcoin. Who trades it. It is stupid to bias and they will pay a price for it one day. So, the only value of bitcoin is the other guy will pay for it. Said he doeslso not understand the value of something that does not have actual value. Founders are in 30 of the parent companys 10 masters. Shares have surged over 6 , giving each a net worth of 1. 4 billion. That is your Bloomberg Business flash. I dontknow scarlet know about you, but i think that may not be obtainable. Abigail im with you. Joe i am bullish. Scarlet lululemon is falling on our exclusive reporting that amazon is looking to get into Athletic Apparel. Julie hyman is with us with the story. Thats pretty dramatic. Julie this was again our exclusive reporting from our folks of bloomberg news, reporting that amazon is using taiwanese suppliers, the wholesalers, manufacturers, for some of the other big athletic the tie whenlers, he is a vendor that makes clothing for the gap and kohls and another taiwanese supplier who makes things for nike, lululemon, under armour, and we are seeing reaction in those stocks in particular. I wanted to focus on lululemon ,ecause it is having a rebound unlike the others. In its last Earnings Report the numbers came in better than expected. At store sales in particular, better than estimates. That blue line is online sales. Thatows the success in area. They have been doing better than the rest of the industry. We will bottom line is be wearing amazon close in the future, right . That is the fear, right . Joe that is the fair. Julie how many times have we amazons headline is getting into x . It is happening with groceries. It happened with the distribution. You have these kneejerk reactions. It is unclear. We do not have specific numbers on their existing private label close business. So we do not necessarily know how successful it is going to be. Scarlet it is aspirational though. Joe we were joking the other day that every headline, you can looms to amazon it. They are not necessarily going to win every space. Julie if you go on amazon now you can buy under armour apparel directly. You can buy lululemon not sold by lululemon. And nike under armour put on there is the lower end of their offering. That also said something about what people buy on amazon. Scarlet thank you, julie hyman, who does not get her Athletic Apparel from amazon yet, right . Julie not yet. Scarlet at the close, modest gains here. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. U. S. Stocks climbing to record highs and treasuries rallied. They gather her glasses. Dollar pared losses. Joe if you are tuning in live on twitter we want to welcome you to our closing bell coverage every day from 4 p. M. To 5 p. M. Eastern. Scarlet we have stocks rising once again. I believe this will be another record high. Just should replay yesterdays show. Scarlet there are individual names we have to focus on. We have been talking about lululemon. We are taking a look at some of the worst performers for the president e space, trump yesterday signed the executive order to loosen obamacare and ending the subsidies for insurers and the shares of the companys most exposed to obamacare taking a hit. 17 centene having the worst week yet. Ingers are saying risk, sell pressure among the California Wildfires and jb hunt down 4 . The arearish is the shares of 3d printing. We have a longterm chart or perhaps we do not. I will pass that on. Joe lets take a look at government bonds starting with the twoyear and 10 year. The inflation data coming in lighter than expected. Probably not dramatic enough to change the fed picture but still a bit lower across the board. Remember one week ago we had 10 year yields hitting 2. 4 . After the jobs report. Coming down all week and the five year yield in mexico ticking higher. Scarlet you mentioned the cpi report, the dollar weaker except for the Canadian Dollar after the cpi report showed prices rose less than forecast. It as more weight to the argument that sub2 inflation is transitory or maybe structural. The eurodollar, not much of our reaction to the report that the ecb may consider cutting its assets asset purchases. You can see that there is a turnaround in the g10 currencies. I wanted to highlight the brand. The rand. Court did not order prosecutors to ahead with the case which alleges corruption, racketeering fraud, and laundering. At lets take a look commodities starting with oil and gold. Oil doing its thing around 51 a barrel, up 1. 5 . Gold above 1300 an ounce. 1270. At with the decline in yield, perhaps the expectations that fed rate hikes will not be as bad. Gold on a little bit of a rally and orange juice futures, im not sure if that is right but they have been weak. Lets take a look at lumber. That has been on the chair. We calle recall the disputes about lumber. Number futures having a pretty impressive move. At weworth taking a look were talking about the rates, looking at the bigger inflation picture. I have a chart here on my terminal, i always like to look at different ways of looking at the inflation. Scarlet tom keene called this 50 shades of grey inflation. Cpi services, x energy, that was higher around 2015 and 2016. Still at the lowest level in a headline. The cleveland fed continuing to could decline. Scarlet it is refreshing the chair is admitting it is a mystery. Inflation will not get to the target. The Investment Firm is under review about whether to put client money into businesses. Guggenheim is a shareholder in a diamond owned African Financial Services company. Time. For taking the the question here is the appropriateness of guggenheims actions relative to these investments. What would be inappropriate at relative to what we now, as it appropriate or inappropriate . In 2013 they took a stake with an African Banking venture. Bob diamond has another private equity type firm called as atlas merchant which is in more developed markets. Guggenheim through a series of multiple transactions has invested in these firms in different ways and the sec is reviewing whether the firms are so entangled that one is an affiliate of the other. Which would make it inappropriate for guggenheim if they did not properly disclose it. Joe are there clearcut rules about how this works . Intuitively you could see how conflicts of interest might arise. Beother different arguments valid or not valid . That is a fair question. All of these entities are invested in different ways. Guggenheim invested through atlas. In atlas merchant where they created another entity to do so. There is a lot of questions about how these are structured the beer areas line. Has been troubled with infighting stories of late. Thedoes that play into what sec is reviewing now . The sec is reviewing under scott minard. All arguments, there was a lot about mark walter who is the ceo. Whether he promoted this one and whether there was some nonbusiness relationship and there were 22 people fired in the wake of that. This shows a lot of infighting at different parts of the house. Joe four ago time as a business these two distinct stories, what do we know about what is happening to them . In the last couple of years they have lost 60 people in different parts of the house. In terms of who is actually there has changed quite a bit. It is also changing in terms of his this makes. They [inaudible] their etf businesses. A lot of things are changing in terms of how the firm does business. Guggenheimst first runin with the sec. What does this mean for the current review . In ais is the second time couple of years, they had to pay 20 million when their president according to a person familiar had taken alone from mike milliken. The second incident in a couple of years. John shrewsbury will be joining us and we will get his take on the Mortgage Market and Credit Trends as well. This is bloomberg. Mark it is time for first word news. President trump says he will not recertify the Iran Nuclear Deal because the country is not the thing up to the spirit of the accord and has committed multiple violations. The president announced a new strategy that speaks 60 counter what he described as the rents destabilizing activities and to impose additional the financingock of terrorism. He hopes the answers the ion will bring a future of where sovereign nations respect each other and their own citizens. Mark he added the new approach will address the proliferation of irans missiles and weapons. Released aident statement responding to the comments. He said that President Trump does not know the deal is not unilateral and that one country cannot dictate terms of the accord. He mentioned the u. S. Role in the 1950 coup that overthrew irans democratically elected Prime Minister. The israeli Prime MinisterBenjamin Netanyahu has congratulated the decision. Netanyahu called the president s move courageous. Iransoldly confronted terrorist regime. If the iran deal is left unchanged one thing is certain. It will haves time an arsenal of Nuclear Weapons and that is a tremendous danger for our collective future. President trump has created now an opportunity to fix this bad deal. Warned the deal has failed to address irans support of militant groups that act against israel. Said in ae junker speech they process will take longer than initially thought. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Fargo reported earnings that lacked forecasts. Profit at wellsville over 18 cost i an increase in the banks Legal Expenses tied to the mortgage practices before the financial crisis. Is johnus with more shrewsbury from san francisco. I want to pick up on that 1 billion charge, should we expect further increases in these estimated possible losses beyond reserves when we get the filing, investors want to get a sense of how much we are dealing with her. John it is hard to see until we file the 10q, we have several weeks before that happens. With respect to the rmbs activity we took the charge we did because that is our best information and we are in the process of the negotiation which is ongoing so i cannot talk too much about it but that will be we will be as disclose of incomplete as we can be. It has been a most years since the mortgage crisis and we are glad to be heading through this at least at this point. The rest of the results if you are able to compartmentalize that were consistent where they have been in recent quarters. With revenue relatively flat it at a high level of profitability also. Consistent with prior quarters at a high level and returns on equity. That way as well. We have to get through this and we took the charge in the quarter but the background business seems to be performing quite well. Joe some of your competitors reported car data that was a bit worse than expectations which were expecting to be deteriorating. Characterize the car business and how we should expect the charge off to compared to competitors overtime. John we are the largest lender in the u. S. , we are relatively smaller and credit cards. It is a fastgrowing business but off of a smaller base. What you will see from us is a base business that reflect season cardholders with relatively low chargeoffs but new vintages like credit cards do experience a higher legend level of charge off because they come early in credit card relationships once cards are other. I saw the charges folks had taken. Employment, the consumer is doing pretty well. You would expect losses to normalize versus longerterm trends. Maybe they have been better than expected. There is a lot of competition to give credit to consumers. To makeompete fiercely credit available. Perhaps there is a little bit too much credit versus the appetite people have to responsibly work through it. We will see how that works but i do not think of it as a sea change in consumer credit. You might see that if a recession hit or unemployment spikes but not now. Not the car chargeoffs are a function of an economic change competitiveand your competitors moving further out on the risk profile to consumers who had not been offered that in cars. John it could be two people who had not been offered or more credit to people who had already been offered less credit. It could be a supply versus demand. You mentioned that revenue was basically flat. On a yearoveryear basis from lester Revenue Growth for this year is below 2 . They scandal cleanup is not as quick as youre hoping, could that drag on Revenue Growth through 2018 as well . John i assume it could. That pretty much is the margin with respect to our overall Revenue Growth. Where an 85 billion revenue come Company Coming from a variety of drivers. If there is anything i would attribute to the reputational impact it is the pace of referrals from our branches to some of our product. The referrals into credit card or home equity or student loans, those are little bit slower. Those tend to be longer lived in terms of their revenue contribution because the loan does not contribute a lot in the mediumterm. I think our revenue has more to do with our overall pace of earning asset growth with what happens to Interest Rates and what happens in the economy. In a 2 growth economy if we are growing plus or minus one or 2 overall and our scale, that may be what is there to be had if we are growing faster because from stimulated policies come through or some things have come to pass that we have been talking about, that could help things. Businesses,appens business fixed investment, expansion, risktaking is going to remain muted and that is reflected in Business Loan activity in particular. Talk about the home Mortgage Market. It is the biggest home loan lender and we have seen growth pick up in recent years. Big business for you guys but with the fed intent on normalizing Interest Rates what is your outlook on mortgages and what you are able to offer 2018, 2019, the Growth Prospects there. John 42018 our view on the size of the Mortgage Market is consistent with the industry. It will be smaller than it is today. Part of that is on the expectation that refinancing slows down because long rates may move up. It is not clear that long rates are moving up anytime soon and the fed may have to slow down on short and if long rates do not move up. The most recent activity along these levels of rates seem to be tailing off. People have gotten their refinancing done. Relying more on people purchasing homes to drive the Mortgage Market. Takee in a position to share, we are the largest but we have had Mortgage Market share as high as twice what the current level is in boom times. We have launched a new product, a new Digital Mortgage application that makes the convenience and experience for customers is high and our anticipation that will help us take share from other people. Even if the Mortgage Market does not grow much there is a big opportunity to grow the size of our business. Fake terms of the accounting scandal, what are the things we should be looking for down the road over the next few quarters to judge how well that is being put into the past . John i would say the as our team members on the ground in branches are continuing to come along with our different approach to how we originate business, how we welcome new customers and, you will see counts of our primary consumers and checking customers go up. They are flat. Those are the customers who are the most engaged, biggest balances, most transactional activity and as you see those Growth Growth you will see the attracting more into the bank and maintaining the relationships we have. In places like credit card, student loans, home equity activity, those are referrals inside the branch and our people need to be comfortable with how they are doing that. The expectation is that that is beginning to heat up. Hopefully all of those things are contributing and i would be looking for those signs of a normalization and stepping into the future. Thanks for your time and what i am sure is a busy day for you. The cfo of wells fargo. Patch is hitting a rough after the latest round of talks between the u. K. And eu ended in a deadlock. The commissioner for Economic Financial Affairs said the eus position is clear. This is bloomberg. The next steps and brexit hang in the balance after the latest round of talks ended in a deadlock. The european commissioner spoke to bloomberg. Our position is very clear and is very firm. It is a divorce, it is a divorce that needs to be a good divorce. With a strong relationship after the divorce. To discuss about the future relationship between the eu and eu we needhe first to solve the issues that are on the table and the first thing is that we need to have a strong, precise, and definite discussion about the financial settlements and also about [inaudible] so first thing first. You use the divorce model, you need a more structured dialogue and a Court Process into fort divorce. What do you need from the british, do you need more precision, more acute dialogue from them . Two weeks ago when may delivered the speech in florence, everyone appreciated the progress. She took into consideration the idea of transfer. This is Getting Better. But everybody said at this time we need to move from this speech resize proposal and were still waiting for them. This is why yesterday we had to say there was not sufficient progress to move forward. Lets not be too pessimistic. Progress is possible. Progress has to happen. It can be decided outside the courtroom. Who is going to do drive the dialogue for you . Will it be driven by the state leaders . We have a precise organization and our british friends are aware of that. We have a unique negotiator. He is the director general and the commission and act in the name of the commission, all the commission. He is a friend but i am not negotiating. Hey he does not only represent the commission, he reports to the European Council eights time. That thesh side knows 27 have a clear position and they are united and will stay so. Are movingamerica bodies from london to paris. Everyone wants to know in live in paris. Are we seeing more people in london make the choice . Notoday i am in brussels, harris. Harris is a fantastic city. What is clear is through this shift and it is not the only amsterdam,is paris, berlin, also spain, other centers. You can see how necessary it is for these banks to have a strong foot inside the eurozone. This is why i am a very strong advocate of the eurozone. The euro willit be 85 [inaudible] and we need to deepen our eurozone. Next, will humans have any role in Financial Markets . We will discuss. This is bloomberg. Mark time now for first word news. Ifsent trump told reporters democrats were smart they would negotiate something or people get the helper they deserve. Courts do you would have millions of people sign up under that. I will say that the democrats should come to me. I would even go to them because im only interested in grading Great Health Care for this country. Mark the president also defended his physician to halt insurers over obamacare. Authorities say an autopsy of shooter found nothing unusual about his brain. Some believe an autopsy could shed light on any medical actions. On haddix the countdown continues to the well adline clamoring for the breakup. As Opposition Leader speaking today in london, a former president ial candidate says democracies in jeopardy. Ecause activists star onshore announced this week it was dropping out of the quarter quarter recount. Hes willing to return if they connected demands for reforms. I mark compton, this is bloomberg. Todays get a recap of market action. A big it showed Consumer Prices rose forward. As computers have prominence, computers are trying to figure out what their role is. Thank you very much for joining us. About the rolek humans will play in the financial system, but before we get to that, the unconscious brain is much better than even the best computer in the world. What does that mean and why is this significant . As humans, we like to think our conscious brains are controlling things, but research mostointed out clearly decisions are made before our conscious brain is aware of them. What we really do is try to get reasons to explain it. For socialtial cohesion. If we cant understand what people are doing, they are like wild animals. Brain is in fact very good at trying to predict what youre going to do next. Tie that to the Financial Markets and how humans contribute now. Makinguters are rapidly decisions. Prices determine all kinds of things in the economy. Who loses their jobs, they can change wages, all kinds of good and bad things. And they dont tune in because they want data. They want to seem in studio over and try to make sense of it. If people dont trust these numbers, they turned to alternatives. They turn to socialist regimes. It is hard to trust something you dont understand. Or 2008 come on wealth was cut in half. Nobody really knows why. Is not a matter of confidence . You could call it that. I dont think people have confidence that is too erratic. Is as confused as everyone else, but it is highly competitive. Seems like there if we arerole even during these rationalizations, for a lot of people seems like theres a lot of anxiety, particularly for risk allocation. What is the role for people engaged that way . It is journalism, but interfaced with the legal system. You have to get people to trust their life savings without telling them what is going to happen. Or you have a company and you are an entrepreneur. I dont think it is scary. You dontys known know the future, but you have to make the best decision today. Piece come upyour right now the unconscious range better than the best computers, but you dont think it will. Ltimately win that fight well, it is not a fight. It is a cooperation. Computers are not as good, but y are emotional and sheep they are not emotional and cheap. I think it is possible we can turn everything over to skynet until it kills us all. What kind of feedback have you gotten from people in the industry. I have not heard much from financial people. If you your future manager said that she might. Hink what about paying a fee humans are still very important, but they dont like admitting. Theres a offer of a book which talks about your career and also as avid poker player. Seems like if computers are going to be able to be the best of making financial decisions, they should be a look to be humans at this no limit texas hold em. Are they at that point yet . In poker is a videogame, venture, computers are better than people. Pokerheres a lot more to than points on a scoreboard. Humansal money will continue to play poker and enjoy it even if computers can do it better. Computers so get the adrenaline rush. Maybe that is it. Director,managing thank you. Coming up, the china feature of chinas Economic Growth to the next week for it what should investors expect . We will discuss. This is bloomberg. The chinese comments primary gathers on wednesday. In professor of trade policy from cornell university. Thank you for joining us. He pointed out, inherited some key Party Ministers for it this time you get to handpick these guys. What does that mean for the speed of his agenda . Congress it willtion is whether leave to strikes. How he uses that power, whether he pushes for pushes forward remains to be seen and we will start to see glimpses of that in terms of the appointments that , and also in the coming weeks and months you will start seeing reshuffling of those supposed will be very important of what is going in terms of we have not really seen that except on the Financial Market, particular certain Financial Market reforms more opening of the capital account. Veryf these have proceeded slowly. If you think about what has happened, there has not been much talk of that, but action in in has actually increased so the notion of having a more corporate eyes ofnomy seems to be one way interpreting what the economy looks like so we had to see what he really means. She is working in a weight with and around President Trump appear to be the voice of reason on the global stage and perhaps most part one man in the world. What you think about this and what do you think could emerge from congress . Months the need to push forward been replayedas including Free Movement of goods and services and Financial Capital and climate change. China is going to play more constructive role in global leadership. If you think if you see how reacting,tries are they say the u. S. Is retreating. Unreliable ands steady partner. It is working just fine for beijing right now. Plus of course, china has been on a drive to national is currently as well. Sdr in added to the chinese domestic shares, but the actual use for International Payments is not really taken off. Where is china with that effort . That effort had stalled because theres a very important reason why china wanted to push providedecause it ,ramework for pushing through opening up the Financial Markets in moving towards the governor was able to use the notion as a framework for then,g forward, but since the needanged sure it to think about having that played a major role, especially becomes it comes when it comes to volatility. Thererd hing has been a stop and go approach in investors dont have the confidence that the chinese economy is going in the right direction. The chinese have to open the doors wide but nobody is coming. We will have more information stay. Thank you for joining us. Some ahead, how its from our interview with Larry Summers. Trumpst why he thinks tax overhaul plan is an atrocity. This is bloomberg. Taxes will lead to better Economic Growth, but who will pay for the tax cuts . He joins daybreak earlier and david westin asked if tax cuts will lead to growth. Directionally when you cut , may invest more in there is positive impact on growth. The problem is it is not nearly large enough to make the tax cut pay for itself. Distributionse and if you do it in a responsible way you create a specter that does more damage to growth in the corporate cut spurs growth during this also the fact that this is probably about a bad is moment as we can imagine. Capital isnk cost of a constraint on Corporate Investment nor for that matter Profit Margins are at near record highs. This isnt the moment when the focus should be on Corporate Tax cuts. Should we do something about cash abroad . Yes. Part of that is making it neutral whether you make the cash abroad or leave it home and an important part of doing that it is an extraordinary thing. s nationalists from an economic point than any weve had. What that means is today you get taxed in principle and in profits,on corporate is going to change things so you only get taxed if you operate in the United States. Seems there is a case for Corporate Tax reform. Of course, cutting Corporate Taxes if it is done right can be an encouragement to invest, but doing it in a way where that is the whole tax package or you dont do anything or not about corporate shelters and provide any numbers, that is irresponsible. Lets take some of those objections. Hubbard said,lenn you have to be able to pay for it. If you could have Corporate Tax come up with that Movement Towards something you think would be positive . That encourage bringing back capital from abroad would be a very valuable step. That is something ive been calling for four years. On that was Larry Summers earlier on bloomberg daybreak americas. Coming up, what you need to know for next week. This is numbered. Zero stocks melted up to new record highs and treasuries rallied on a weaker report. Faces a deadline to clarify to the Spanish Government whether his government has declared independence for the region. Atnext week, i will look Morgan Stanley and Goldman Sachs reporting the results. Dont mess this. The 19th National Congress on wednesday. What you it for missed. Bloomberg technologies up next. Have a great weekend. Are you on medicare . Do you have the coverage you need . Open enrollment ends december 7th. So nows the time to get on a path that could be right for you. 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The first sitting president to address the value of summer promise a return to additional american values. He also promised to bring the phrase Merry Christmas back to national discourse. Reportedly air quality in show beijing this week and