Transcripts For BLOOMBERG Whatd You Miss 20171130

His attorney is arnold reeve. It is not up to nancy pelosi. Nancy pelosi did not elect the congressman, she sure as hell wont be the one to tell him to leave. That decision will be completely up to the congressman. He has not thought about that, he is thinking about his health, about getting well. Mark he says conyers was hospitalized after feeling lightheaded late wednesday. Pope francis is demanding that the International Community take efforts to dissolve the mass exodus. Speaking in bangladesh, he wrote broke his recent silence over what the United Nations have declared to be an textbook case of ethnic cleansing. He also said world powers must provide help to the government to cope with the refugee crisis. Global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. Im Mark Crumpton, this is bloomberg. Julia live from bloombergs World Headquarters in new york im julia chatterley. Julie im julie hyman. Joe julia im Joe Weisenthal. We are minutes from the closing trading. A day of records and milestones. 24,000 and the s p 500 on track. Joe the question is whatd you miss . Julie there could be light at the end of the tax overhaul tunnel. John mccain says he will support the senate bill, putting republican lawmakers one step closer to a much needed. Legislative win a meeting of the in an attempta, to regain control as u. S. Shale dominates the global market. A roller coaster ride isnt the only thing bitcoin regulators could be looking to crack down on. How hismberg tells us Company Plans to stay on the right side of the law. Lets get a check on were stocks are trading with abigail doolittle. Abigail we are certainly looking at a rally today for the major averages. They are all saw the be higher they are all saw the be higher. It is worth knowing that we are welloff at the highs. The dow had been up more than 1. 6 , its best day at the time of the year. We are looking at the best day for the dow since september. For the s p 500 and the nasdaq, the best day since tuesday. We have moderated gains, but since yesterdays session we saw a big tech selloff. Also for the dow, we are looking at a gain of about 3 over the last five days. The best stretch for the tao of the year since last december. Really reflecting confidence over tax reform, the fact that opec did extend the reduction cut, and the by the dip mentality. There really hasnt been much of a dip divide. Some of the top stocks for the tao today, we are looking at Goldman Sachs, boeing, and Unitedhealth Group and sex Goldman Sachs. Both boeing and it united health, along with Goldman Sachs are seeing a rotation in value added growth. Thatoth mentioned the fact we are now on pace for the eighth month of gains for the s p 500, that is true for the dow. 69, you seetv 31 the changes for both the dow and s p 500. They are trading higher on the month, very big month both october and november. This is the first time we have seen eight months of gains for the s p 500 since december for the. 1995. The enemy, they gains for the dow and s p 500. Behind me the gains for the dow and s p 500. Along looking at walmart with home depot, we are also looking at foot locker and album and did look at the gains we have four walmart and home depot. Foot locker and alan branch up 30 , to 43 . Retailers a turnaround bounceback. November shaping up to be a strong one for the equity markets in the u. S. Julia whatd you miss . The maverick senator pushing the republican tax plan one step closer to law. John mccain came out in favor of the bill. , its still a balancing act for gop leaders on what divisions they will keep in the final legislation to get the 50 yeses. We saw the five names under question. We are joined by alex rain washington. You can talk about who is in, out, and who still has a question mark over them. The senate gop tax bill loses 1. 3 trillion dollars in revenue in,r growth is factored according to the joint committee for taxation. This suggests that it will pay for less than part of the proposed cuts. Who are the gct and why do they matter . The gct is the joint committee on taxation, its a made ofional meeting the ways and means and the house, and the Senate Finance committee. It has members from both of those panels. Theyscore tax bills, estimate the impact on tax legislation on the economy. This is a bad score for republicans. They were supposed to be bailed which the dynamic score, takes into account the effect of tax bill on Economic Growth this score apparently says this score apparently says even accounting for Economic Growth, the legislation will still cost 1 trillion. Joe what does that mean for theoretical revenue trigger . Does it mean it would have to be bigger, higher taxes, or deeper cuts in order to get those wavering senators on board . They are so far away from coming up with language on that trigger. I dont think we can predict that. I dont think they have even decided whether to make the trigger a revenue trigger, or a tax growth trigger, worth it would require spending cuts or tax increases. They are all over the map on this. They certainly havent worked out the language. This score certainly means that any trigger they put in the bill will have to be bigger than they expected. That hurts the prospects of probably a trigger, and therefore the overall bill. Julie lets get back to the idea of these holdouts, especially given this number we are getting from the jct. Are any of them specifically focused on the deficit issue, and on how much this will cost, and maybe it will sway them to continue to be holdouts . Its a funny word, holdouts, im not sure there are any more holdouts. They seem like theyre trying to get to yes to try and pass a bill that will go into conference with the house, and then sort out the problems in Conference Committee and bring it back. It almost feels like this is a show vote tonight on the tax bill. An incremental step in the process. I dont think that any of the problems that the holdouts are citing as causing them to hold out are causing them to vote no. Susan collins is a good example, she has been hammered by voters in maine to defend obamacare, yet this bill includes a provision that would gut obamacare, she will probably vote for it. Julia i want to move on and talk about rex tillerson, we have heard rumors he is on his way out as secretary of state. The spokesperson for the state department came out and said it, general kelly said the rumors are true, and that tillerson serves at the pleasure of the president. Who knows. What a rehearing on this front . I think that rexit is upon us, it looks like his days are numbered. A story like this cant splash on the front page of the New York Times or the bloomberg terminal and not cause the secretary of state to consider whether he wants to stay in his job. They did release a schedule for him next week, he is apparently going to be on the job next week. After that, who knows . If you look at Sarah Huckabee sandersstatements about this, she has said tillerson and other cabinet members are here to help donald trump get through his successor first year. She didnt say anything that happes after year one. Joe obviously we know about those reports from earlier in the summer, tillerson reportedly having called President Trump a more on, which i believe he denied. He did not personally deny it. Joe other than that story, is there anything else that explains the testy relationship between the two. Some of the reporting on the ivanka trumps trip to india was bad for him. She went to india, the white house apparently was expecting the state department to support her while she was there with staffing. Tillerson at one point was maybe not going to send a highlevel person, he want up sending the director of the u. S. Agency for international development. The back and forth over that seemed to not help him. Its hard to tell why he might be back on the downslope with trump. Earlier this month, they seemed to get along well together on the trip to asia. I dont know exactly what the timing is for this development. Julie we will keep you posted on what ends up happening. Alex wayne from washington, thank you so much. Coming up, we talked to the ceo of a company that helps run digital going tells, what does he say about the future of cryptocurrencies . Everyone has an opinion on this one. From new york, this is bloomberg. Julia whatd you miss . Nothing grabbed wall streets attention like a template return, investment analysts in a conference in manhattan. The event spaced into a standing room only affair. Lets get insight on the future of cryptocurrencies with chief pointlessoperator of kwame less. Coinless. Whats going on with bitcoin . It has been crazy. Bitcoin hit 10,000 a going this week or the first time. Arbitrary as any metric, it is a really important signifier of the attention put into this space. We are seeing a move towards people paying more attention. For us, we are seeing more attention paid to the space might investors and individuals. Joe for a long time in the people would see the value of these cryptocurrencies, the price will rise. How much of what we are seeing now is people think just get in now, because someone else will get in more tomorrow . Else will get in more tomorrow . For us, what were seeing is the fundamental value is being recognized. We think of bitcoin is digital gold, it is a store of value. Thats becoming valuable. Itself, that value is being recognized as people move from other stores of value into that. Rise inypto assets value, they have to be backed by underlying usage. Julie come on. Im sure there are some people getting into it for the fundamental case, but it doesnt swing like that in a day. It doesnt rise 900 in a year because there are that many more people seeing the fundamental value. I think there is a lot of speculation going on, we do believe that the value is being under held by the true value of the cryptocurrency itself. Theres a lot of speculation, it is early for bitcoin. It has been around for less than a decade. Were going to see a lot of volatility for a while as he gets figured out. Julia talk about what you do. We are a platform where the best i ceos and sales happen. A Digital Currency is an initial coin offering, where they sell a number of tokens to early users that can use them on the Network Later on. Our first one was file coin. You can store files on the cloud on a distributed network of computer. File coin is a token to use to pay for that storage. Julia we seem billions of dollars worth of investment, money raised. There are all sorts of concern that people raising money, and the underlying asset is nonsense. Thats what were trying to solve. We want you to pay for the vetted highquality sales, theres a lot of noise in their. Julia what proportion of the money being raised is actually raised for something that will never actually come to fruition . Thats tough to say, ipos im only existed for a year. We do want to that these projects, matrix have shipped products in the past. Julie what else does the betting look like, besides looking through their history . We have both a technical advisory committee, they look at the codes, the white people, as well as the advisory committee. Does it make sense should it be used to transaction, other companies on this network . Were looking at those components in addition to the team. Joe is there a single one of these tokens being used for anything . There are a few, but it is early. Token fort one is a other tokens. One being used a lot is a token called numerai. Its a hedge fund to predict the market. Julia how are you protecting herself from people going back to you in the future and saying you told us this was ok and Nothing Happened . We expect investors to do their diligence and make their own decisions. We want to take it from 1000 or 100 tokens down to the view that we believe are highquality. Week, formerin the fcc commissioner said icos represent the most open and violation of security laws since the code of, robbie. The basic issue is we dont know how the sec views it at some point. There has been a vague outline, some people say utility tokens are ok, speculative tokens not so much. What do you feel confident that the token you are offering are not unregistered securities . We focus on an instrument we call eight saft. It were present ownership of tokens in the future. We sell his document, we are putting people through the regulation to book your security. Laundering, in addition to making sure that the security is registered with the sec. Up to them tos distribute it to the investors later on when it goes live. We are self volunteering. Joe when people buy for you, they are not buying a token, they are buying the security that owns it and thats how they say is a registered security . Thats exactly right. Julia not to be confused with an ipojulia . Julie definitely not. Really interesting conversation, thank you so much. Lets move on to a different kind of security, stocks. Stock of the hour is a ca health care, those shares are up more than one 7 . Its also higher for the seventh straight day, matching its longest win streak in over four years. Emma chandra is here to explain what is going on. The tax overhaul plan, analysts are saying it looks to benefit from the tax overhaul plan. Jpmorgan boosted it to overweight and said it was disproportionately benefit. What they did was argue the Corporate Tax, the lower Corporate Tax rate could add up to 23 and the expensing proposal may be 30 . Joe we have been talking about the tech stocks, you have a lot of ip and are on the world, this is the polar opposite. This is all domestic, theres no intellectual property with a hospital, people in, people out, it pay close to the top statutory rate. What they have benefited, or what the hospital stocks have i haveis they the Bloomberg Intelligence hospital index. They are close to the top, if you change this to a year today chart, you can see the rest of it doing pretty badly. They are kind of the best over the course of the year. One of the things people say is the tax overhaul bill may not happen, but we have seen some other analysts say the art of it happening are much higher now and we are getting a serious shift in tone from those who think it can change the game for the health care system. Julie there could be Downside Risk if it does not. Julia highly complex. Coming up, tax reform continues to be the topic on everyones mind. How do tax cuts talk investing market . This is bloomberg. Julie whatd you miss . We have our periodic report card on the tax sensitive stocks and how they are preforming as the debate continues. The s p 500 in yellow to give us a baseline. Then we have the russell 2000 in blue. And the highly taxed companies in white. Inferior, we have been talking about the russell 2000 as a proxy for the tax debate because they are a domestically Oriented Company seen as benefiting. Indeed if the legislation happens. It has been moving sideways, its gains today are outpaced by those of the major averages. Its lagging, even though it is higher. Than high tax rate group. Is getting a boost, that reflects the perception, at least in those stocks the tax reform is getting closer to passage. Joe another way of gauging the markets view on taxes. Im looking at the optimism in the market, we have a little bit of a selloff in some stocks already erased. The s p 500 index etf is pretty straightforward with going on. Calls are searching every day, new highs, more people betting through options that stocks are going to go up. Theres a lot of optimism in the market. Julia what about tech stocks some investors, the s p tech sector still down over 1. 5 . Still sorry, or perhaps really not still sorry for the tycoons behind the bank stocks who saw more than 7. 5 billion. You can see why is off their valuations. Mark zuckerberg falling the most , 2. 9 billion on the bloomberg billionaires index just. A stuff of. To october. 7 you look in the gains they made as a result of the earnings season, more than 17 billion. Joe they are doing ok. Julie the market close is coming up next, tech stocks are coming back today, along with the rest of the market. Less than four minutes until the close of trading. New york, this is bloomberg. [applause] julia whatd you miss . Tax reform giving stocks a major boosted it, the dow passing the 24,000 mark. Julia im julia chatterly. Julie im julie hyman. Joe im Joe Weisenthal and if you are tuning in live on twitter we will have closing bell coverage every weekday from 4 00 p. M. Until 5 00 p. M. Eastern. Julie we begin with the stock market today, pretty dramatic comeback may even for the nasdaq which was slumping yesterday, finishing the day by about three quarters of a percent up. And the dow and s p 500 at records, the nasdaq not quite making it there, but the dow jones having its best day since march. Remember yesterday, the narrative was all about rotation at of technology and into financials. Financials initially today where leading the gains, but then finished the day of only. 5 , so carrying the gains considerably were industrials and energy, finishing in the top three spots. And as for individual stocks, really spectacular day for kroger, although it finished down off of the highs of the session, the Supermarket Chain has been battered for months over concerns over amazon getting into the grocery business, especially with the acquisition of whole foods, but they Beat Estimates and say that sales growth will continue in the fourth quarter. Sears holding posting a narrower loss, continuing to pay off the debt, but shares initially went higher and ended up finishing lower on the day. Earlier they were up by as much as 28 , then swinging to a loss of 3 by the end of the day. Juniper, remember there was a report late yesterday that nokia was in talks to buy juniper, but nokia says that is not the case. They are not currently in the talks preparing an offer. That is according to a statement from nokia. Tune up or down 6 . Joe now taking a look at what we saw in government bonds. Starting with the u. S. Twoyear and 10 year. We see some lift. 1. 79 for the twoyear, 10 year up a little bit more. 2. 42 and that to is the higher end of the recent range. Take a look at the year to date chart of the 10 year yields to put this into perspective. I believe we have a chart. We are getting up there, not the highest level of the year, but the other point i want to make as we have been rebounding. If you look at that, it is basically going nowhere and then at one point we are around 2, but we have really been stuck at for a long time and we have not had much direction. Julia every basis point counts when the yield curve is concerned. Currency, a little bit of softness in the u. S. Dollar. Earlier in the session we were lower. And we erased the losses, trading a bit higher after we got hope with tax reform saying with john mccain saying that he would support the bill. But this is the final day of november and i think that is playing more into what we are seeing with the other currencies, sterling up 9 10 of a percent, 135. 33, this level has not been seen since september of 2016. Hopes we reach a brexit deal between the u. K. And european union. And now they can move on to trade, which has been in the background. I think this is more about the dollar selling. And lets show you some of the to givees, specifically you what we have from the opec leaders today and i will not say anything more because Joe Weisenthal will. Joe taking a look at the commodity front, and not moving that much because of what opec did in terms of delivering on the promised cuts throughout 22, more or less with the market expected. Some good news it will not have an automatic review the middle of the next year, raising the possibility they have to stick to the cut, west texas above 57. Gold, dipping. Not much. And coffee and cocoa both down. I looked around and i will be honest, i do not know why, but i think people like coffee and cocoa and they are both above 3 cheaper today. Good news. Quickly, longterm perspective on the intraday, we got the pop in the morning and that was on the news of the opec stuff and a faded later, so in the end they delivered what people expected. Julia was the National Chocolate day . Joe that must explain it. [laughter] joe those are todays market minutes. Julia you can count on me. Julie whatd you miss . More on the rally. We have the chairman and ceo of Asset Management in the studio. We saw the swings yesterday and today. And it is interesting that we are seeing this motion come back to the market. And divergence yesterday. Do you think it is finally coming back, that we will not continue to see this is sort of anemic market in terms of the daily range in swings . I think it has been more interesting for november. We had that many mini dip before thanksgiving and we came back strongly. And i think we are in a time where people do move around the portfolios. With all the political stuff and tax reform we do have mutual funds, and we had the u. N. Today, that will have an effect. And we are getting into december which will be dominated by you and concerns. Unitedu mentioned nations concerns. Joe as you mentioned, the prospect for tax reform having a different impact on different sectors. Subsectors moving dramatically, whether it is tech is selling off or banks what do you think is priced in with respect to tax reform, and what could still change Going Forward . Michael these things have a life of their own. You go back a year ago and people were trying to figure out trump, you had exaggerated moves from the beginning of november through january, many of which have reversed themselves for the next 67 months. That is the reality of what tax reform means, nobody really knows, and you have the market trying to make sense of it and we have all these other things, so yesterday was a day in which the market did nothing and the s p 500 was down, but under the surface there was a massive dispersion. Today was a day of people accumulating u. S. Equities, and from what i could see japanese equities, but every other country was liquidated today, so it is a lot of messy trading. In the end, your today it would tell you it has been a good year for Global Equities. I think that there are reasons to expect that to continue through december. And i try not to pay too much attention to this kind of very hours, whether good or bad. Julia where should investors be looking as they look at their portfolios in 2018 . Michael ive been a big believer in asia and i do not see any reason to change my mind, despite the fact it has been a difficult place to be for the whole of this week. I think that the asian portion of the Technology Story has been somewhat downplayed so far this year. I guess in the last couple months people have started talking about it and i do think it has legs, and i think the domestic economies in asia are underestimated. Julie something we have not talked much about with tax revision in the u. S. , is if you do have the repatriation the effect could have on asia with the cash that has been part th parked there. Do you see a Ripple Effect . Michael not obviously. They could be holding u. S. Treasurys in a Singapore Bank account, im not sure what repatriation would be in that situation. I do not see that as an obvious catalyst for change. Joe earlier i was showing the chart the basically, you know, after donald trump was elected we saw the shoot up in yields and that there was talk we would get new direction for the first time in decades on the race front. Michael it is at the short end of the curve. You look at the chart of the twoyear yield, quite a lot has happened that started happening in the last to 75 days. In other words, there is a new expectation for with the fed will be but to do, or i would say have to do over the next 12 months, and that is a change. Where there has been no change is the 10 year yield and the 30 year has come down a little bit over that bit of time. I mean, i think that the change in shortterm yields is significant and it reflects a greater understanding of the power of the economic cycle. The fed has really changed its tune. It has stepped away from a strict targeting of inflation, they talk about it, but now it is a loser target that eventually they will get to, instead of deciding each month with a will talk about when they sit down. Joe you see the chart. It has been a Straight Line up since september. I think a bottoms on september 10. Michael my motorcar looks the same. You talk about these moves, theyre clearly has been a change in allocation and it has to do with the understanding of where the us economy is. Julia it kind of threads together when you are going to a day where we see a bit of a selloff, pressure in technology, even as we approach the end of the month, and it plays into this as well and the fact that you do not have a down day, you say rotation going to financials in particular, so there is reluctance that seems, whatever you think in terms of whether things are pricey or overvalued. Michael difficult to explain why youre not invested in a year where everything is up 50 or 20 . If you have not been invested, you have been wrong in a year like this. Thinge most surprising perhaps is people were selling Global Equities to buy more u. S. Equities, but i doubt that has much legs out there. Julie talk to us about bitcoin. Michael i can Say Something sensible. [laughter] the most interesting thing was the announcement yesterday that the base will have to turnover tax records to the irs. And that is potentially damaging, if one assumes a lot of the earlier ones have not thinking to pay their taxes. Things, if i went back 17 years and remembered one of the things that called the bell on the nasdaq, it was the need to pay your taxes in april of 2000. If you look at what happened on that day, the last day to sell equities and send the check to the irs, that is when you realized there was trouble ahead. I would argue that bitcoin users having to pay taxes is the first really negative thing that i have seen. Whether that means that was it yesterday, or you know julia it was a feeling of frost. Froth. Michael people are excited about it and they need to understand cryptocurrencies i mean, yesterday, there are two Major Conferences on cryptocurrencies, one that you covered and another one that was one of the major ones while straight banks are running and i believe it was standing room and both. One the cannot fit a clients is i do not know and i do not care. Julie is there anybody on, maybe the ducati representative we did not ask about it. [laughter] julia i just meant a general sense of froth in the market. Michael and everybody is using it as a way to promote themselves. I thought in new york plastic a new yorksaw classic surgeon announcing that he would take bitcoin today. [laughter] he has succeeded. Julia thank you so much. Chairman and ceo of market Asset Management. Coming up, whether tax plan from the publicans help small weigh in on the debate. This is bloomberg. Im Mark Crumpton with first word news. Mark as the Senate Continues to debate tax reform, the main independent angus king is proposing an amendment that would make the bill he says if passed, the impact of the bill will be felt for generations. He says the stakes are too high for lawmakers to ram the bill through congress. Instead, mr. President , we have the worst possible process. Andave the highest stakes of the lowest process. It is the worst ive ever seen in a public body. The Bangor City Council wil ould not amend the leash law with this process. Mark Mitch Mcconnell says he expects a vote today or tomorrow on the on trillion dollar packages that would cut the Corporate Tax rate and eliminate several popular deductions. British lawmakers urging the prime ministers government to formally canceled a state visit invitation extended to President Trump. That is in the wake of the ongoing transatlantic fallout after the president retweeted videos from the far right Movement Britain first, and another tweet lashing out at theresa may for criticizing the president. Two is the first world leader to visit the white house. The u. K. Says the visit still stands, although the u. S. Has delayed the trip because of the potential skills protests. The white house says the president will deliver his first state of the Union Address on january 30. Paul ryan has invited the president today, and in a letter he called the address to the joint session of congress in opportunity to lay out the work that remains to be done for the american people. Said thedvedev condition of relations between washington and moscow is horrible. He says the atmosphere of the relationship is the worst in his memory, despite the desire of President Trump to improve them. He says the president is a victim of the hostility toward russia. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Mark Crumpton. This is bloomberg. Julia breaking news regarding the carlyle group, the buyout funds they launched to invest in deals in north america is approaching an 18. 5 billion cap. The initial target was around 15 billion and it looks like it is already exceeding the target for the fund, and it will include 1 billion from carlisle and executives. This according to sources close to the team. A representative declining to comment, but it looks like theyre fund is approaching the 18. 5 billion cap mark. Whatd you miss . Democratic lawmakers have suggested that tax cuts in the tax plan could result in higher dividends for shareholders. Is that a bad thing . Lloyd blankfein and Michael Bloomberg discussed it with our alix steel. Lloyd we decide whether to reinvest based on opportunities. I do not see that as such a big schism, if we return, you know, if we have access money, more than we probably could invest properly and return it to shareholders it is not like putting it inside the bonfire. We give it to shareholders and they invest in themselves, it is their money, they invest it where they think there is growth. If without we could deploy it profitably, we would invest in our business, but if we have excess capital we can give it to shareholders, and maybe they will invest it in startups or deploy it in their own Small Businesses. It does not evaporate, it just goes to the place most needed. Where it is least needed is probably government waste. I also prefer taxes to be reduced and the government to be made more efficient, but whether or not we can deploy it where whether we give it to shareholders so they can, it all will end up going to the right place. Alix tax reform on the table now in the senate, will that make Small Business people happy . Michael i do not think anybody knows what will come out of the negotiations in washington. Thetax bill should require great minds and lots of study and discussion and getting expert in and creating something that fits together and has the right balance between helping one part of our economy, and another part of the economy and encouraging certain kinds of behavior and discouraging other kinds of behavior. This tax bill is being written in the committee where they are saying they will add anything to get another vote. This will not be a tax bill, it will be a vote on whether you can carry guns, whether or not religious organizations can Lobby Congress and spend the ofey to do it a lot social issues and i think it is dangerous about what is going on. Alix a few weeks ago you said he did not know if this was the right time for a tax bill. That the regulation could have a better that deregulation could have a better benefit. If Small Businesses cannot access capital, what are the regulations that will actually help . The d regulations . Lloyd some of the regulations on banks, we are an investment bank, but some of the regulations, the licensing requirements, those directly impede Small Business and there is a virtue in some of the regulations, so you do not have to eliminate everything, but somebody should look at it, looking at what is efficient and what is redundant. Julie that was the ceo of Goldman Sachs and Michael Bloomberg. Command, a megadeal may be around the corner in health care. We take a look at a move that could shake of the industry. From new york, this is bloomberg. Julia whatd you miss . Nothing because it is time for the Bloomberg Business flash. Julie im julie hyman. Megan Airlines Says they have American Airlines and said they have solve their problem that could of grounded thousands of flights. The glitch allowing pilots to take days off during the last days of the year, even if there were no replacements. As a result, 15,000 flights did not have pilots. Now they say they have found pilots for all the flights. As many as 400 robots going to manual 2019, replacing work in helping to outsource. The bank could see savings of 6 million a year between 20192020. And finance giving you the use of tracking cryptocurrencies, starting today. More than 100 pages of cryptocurrencies will be available across all the platforms. And include information on profiles, data and the coins outstanding. There are also hosting their first crypto events in february. It never ends. That is your Bloomberg Business flash. Opec and nonopec producers agree to maintain all production cuts until the end of 2018. The decision was confirmed today after talks. Here is what Saudi Arabias Energy minister had to say. 2018 will very much matter with what we have done in 2017, and we have seen an increasing level of compliance from but the opec and nonopec countries. Octoberthe numbers of are very encouraging. And we expect november to reflect this as well. Julia joining us to discuss is jpmorgans head of energy and investing. Great to have you. Great for having me. Julia we should not downplay this. This is unprecedented, and weve added to other countries. This is the performance that opec should have given in may. They were concise and they knew exactly what the market was looking for, they did their homework. Not only did they talk about an extension, they have rebranded it. And it will start in january and go all the way to december. They were able to give the key metric, something we do not see before. It is targeting inventory and they said as far as 115 million barrels. So julia does this keep the russians happy . We needed some kind of exit plan or a strategy, we need to be communicate better with the markets so that is this . Exactly. I like the fact that you also said there is no light between us, because some of the media put trade it that there was a rift, but russia said what are we going to do is the markets improve . So they put in the caveat of in june they will assess the market, but if you listen after the press conference where they had the question and answer session, they said even at the end of the year we will not just end, we will have an orderly easing, meaning they will bring less markets into the barrel. I think that is why the market reacted the way it is right now, we were able to articulate clearly exactly what to do and they have taken away the supply shock by capping libya and nigeria. Unless there is a change in demand or maybe an issue with extra supply in the market, i think that is why you saw this kind of ho hum in the market prices. Joe libya and nigeria will be capped at their peak production, so they are try to ramp it up until the end of the year. If they could, they would have by now. You think about the highs for libya they have not made a since the middle of the year, and nigeria has a struggled, especially with their ceasefire. It is a situation where they cannot do it, even if they wanted. So the market is rest assured until the end of the year, we will not really see that surprise. Julie the changing described for opec earlier in the year and now is notable. What is behind the scenes that is getting them there and that is that mean we can expect that they will be this organized going into next year . I think that what has changed is their comfort level. You think about, if you forecast the expectations for shale, it ranges from half a million to 1. 2 million, but as the comfort knowing that they cannot eradicate shale, lets live with it. Knowing that there will be a gap posted 2020. So as long as the prices are in a band, they will be a but to allow shale to grow and keep the market stable. There is a realization theres nothing they can do. So understanding the market better. I think they have finally gotten comfort with that. Julia russia, looking at the u. S. Situation and the sales, looking at china and the gains in market share too, surely that conveys that gives them a positive thought. I bring them back to compliance and even though they have complied and done a good job so far, why will that continue . Is it purely self interest in keeping the prices up . I think that is why we can believe that this will continue, is if you look at the supply and demand balances. We are drawing now, but first and the Second Quarter we will no longer be drawing. So they are still keeping the let us have a discussion in june. The way he delivered it in the press conference is it will see what this market needs. If you look at the declaration itself, it looks like they will tweak things based on the health of the market. If it is growing rapidly, perhaps they will think of an orderly pullback with the quotas. Julie all of the recent headlines surrounding saudi arabia and the crack down on what looks like the imprisonment of a number of wealthy individuals there, it has not seemed to bleed over into the market. Our Oil Investors reassured that there is not going to be some sort of unrest stemming from that . Ebele kemery if you look at iat type of premium is there, would put it around three dollars. In terms of investment being comfortable that this deal will not break down because of geopolitics, i feel comfortable as an investor. They have shown through time that they are businessmen and they put their businessmen had on in this meeting and look for what is the best. Have thiscc countries deal going through as their best interest. Julia if you can hold at this point, you have a pretty good situation. Oil minister the said he was very committed to this. They are businessmen. It is all about what is best. Oil terms of obviously, a pretty nice move since the summer. Is there anything that would on thethis trajectory landscape or does the opec news today cement the trend . Ebele kemery the opec trend right now is cementing that we wish that that we should not be worried about supply. There are wildcards and that is shale. There is a wide range of what the market is pricing in or estimating as to what shale can do. That is something to watch. And readad guardians what a lot of shale producers between 800 it is and 900 for next year. I expect fourthquarter growth to be out. As we move away from this opec gettingople might start focused again on shale. It is all about demand. Especially from europe. People there are advising higher. Prices, you might see that eating into demand. Causingthat is what is the support as we go into next year. If you have a cold winter, people are concerned. I think we could see past the concern and have a clearer look at the weather. For now, it looks really good. What is your price range for the next 612 months . Or 55. Mery around 50 or 55 until about 65. Julie thank you so much. On the bloomberg first word news with Mark Crumpton. Republican tax bill has gotten a boost from john mccain who says he will vote for it. No one has taken his support for granted. He shocked the political world last summer when he voted against the attempt to obama to demolish obamacare. The state department is responding to reports that the white house is planning to remove rex tillerson. A spokesperson says the white house chief of staff john kelly told the department that the reports are not true. She also said tillerson has heard such stories before and continues to serve at the pleasure of the president. White House Press Secretary Sarah Huckabee sanders is defending the president posting videos reporting to show violence carried out by muslims. Andrus said she was not sure how the president found the videos which he retweeted. He has done ist elevate the conversation to talk about a real issue. And a real threat. Extreme violence and terrorism. It is something the president feels strongly about. Mark north korea is releasing pictures of its newest missile which it claims can reach any target in the u. S. It is the largest missile that the north has ever produced. That is significant because it would have to carry a lot of fuel to reach the u. S. Pyongyang says it can also carry a superheavy nuclear payload. Global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton and this is bloomberg. Let us get a quick recap of todays market action. We have had a bounceback in technology and overall gains, broadbased gains. The dow jones and the as mp. And the s p 500. They both posted their eighth straight month of gains. Or the Dow Jones Industrial it is a long history going back to 1995. For the s p 500, it has been since 2007. And december tends to be a strong month for the stock market as well. Let us talk about cbs. It is close to purchasing at not. That deal could be announced on monday and would carry a price tag of more than 65 billion. Why do we see aetna stock not to not do much today . The deal could be announced on monday. Do people have skepticism about the deal closing . Reporter there are probably two factors. Think back, less than a year ago, we saw to Health Insurance deals fall through. We saw two Health Insurance deals fall through. Everyone had a degree of skepticism about that. This deal is different. Julie less overlap. Reporter that said, we now have in and saidas come we stopped at t and warner. I think there is some skepticism around that. We have also heard some folks wonder what makes this deal tick . Wondering what we get a huge amount of benefit with this combination or is this a defensive move against amazon . Ostensible cbse rationale . At how thef you look drug and pharmaceutical supply chain work, you are drug manufacturers over here, patients over here and then middlemen. It is wildly complex and people have looked at this and said ripea second, this feels for disruption. All of these players are taking a slice of this. Could we consolidate this . This deal would do this. Partnershipsand where people are setting up exclusive relationships with one provider. Formalizinga way of bringing these middlemen together. And there could be profit synergies. Does this give cbs more of an ability to bargain over pricing . So much to be able to bargain over pricing. There is already a lot of consolidation. Copaysou also have going on, surely this would put downward pressure on that as well. Reporter you have three big players. Cvs, express scripts and united health. Youre not going to get any more real buying power out of combining this. You will take all of those aetna customers, and say now, they are cvs customers. All of you aetna customers go to the cbs to pick up your prescriptions. Cvs to pick up your prescriptions. And you look at the amazon scaredthat people are about. And a time that amazon is able to keep people out of a cvs store, that is bad news for a retailer. I think there is an aspect of a war over customers that is playing out that is different than the desire to just have purchasing power over customers. Julia thank you so much. Is there a red flag hiding in the Economic Data . Hence there may hints there may be. This is bloomberg. Admitted theing data. A new report out shows that americans are racking up debt but their paycheck is not catching up. New could this mean under a tax plan or an economic downturn . Lisa is here with more. Reporter i found this fascinating. The report highlighted how wages in the past decade in the us have increased a little more than 5 , 5. 7 percent, whereas the amount of Consumer Debt has increased at about 5. 9 . People are accruing more debt than increasing their pay and they are using their pay to purchase stuff. They become more less credit worthy if they run into trouble. The american dream. This is what it is all about. This is how we operate in this country. Free credit, cheap rates. Pretty nice. Julie you hit a tipping point. There is a degree to which this is sustainable. At that point, you wit you reach a tipping point. This is their ability to move beyond where they are at. You also have to look at where they are increasing their debt. It is not their mortgages. Student loans. 122 in theed by last nine years in the united states. A lot of it is that. Also, auto loans have increased by about 50 . Value whenow losing they are sold as used cars. And what is backing Student Loans . Joe your degree and the future income stream that would be higher than it wouldve been had you not had that degree. Reporter this becomes circular and it comes back to the wages. That is why this is interesting. Rates are rising. Pretty rapidly. The rate of the financing that goes to back these loans is egged to libor. Julia do they talk about disposable income . I dont mind if they are leveraging up to an extent. Thatter the report said since the 1970s, inflation adjusted wage increases have averaged 0. 2 . Julie does that solve the question . Reporter they are saying that we are getting to the point where this is unchartered territory regarding this relationship. Joe, you are right that to some degree that is not bad. Is not bad. We talk all the time about the national debt. We have headlines about that tax bill but the u. S. Government has a Printing Press and most of us do not. Isorter and the other point that the gop tax bill would remove the provision that would allow consumers to do. Interest on their Student Loans from their taxes. There is a question about what this would do to the overall balance as well. Julie what do delinquencies look like right now . You have a rising rate environment already. You have a lot of people with student debt. Are they paying it back . Reporter i got some response about this. Some people questioned the methodology on how these things are calculated. It is an odd measure because you cannot declare bankruptcy and have your Student Loans absolving. But delinquencies has been plateauing. Highere in some pockets than they were precrisis on average. Julia tax overhaul is coming willwill raise wages and not be adding to the deficit or the debt. Fantastic. Julie thank you so much. Coming up, we will look at some of this years movers and shakers and some surprising names that made the list. From new york, this is bloomberg. Julia bloombergs 50 is out today. It highlights leaders from finance and politics to tech and business. Here with us to discuss is megan murphy. Talk to us about what the bloomberg 50 actually is. The spectrum of individuals is huge. Reporter we have never done a list like this at bloomberg. When we embarked on it, we wanted to make it different. We didnt want to pick the usual suspects. Whoanted to think about changed business in 2017 and who left their mark in an identifiable and measurable way that will change the way that you do business, the way that you think about things. They are the driving force. It was a lofty goal. Julie let us start with politics. Nikki haley. This is interesting because she is not someone that got as many headlines, a. B. , as some of the other members of the administration but she is doing her work. Reporter she is on the list for one reason. When she talks about foreign policy, she is the closest mouthpiece to how the administration feels. She has also been one of the few people who has been outspoken when she thinks President Trump has crossed the line. Make no mistake. And she is not on his bad side. Reporter and she is an incredibly cheerful individual. Someonelso likely to be we will continue to hear from. She is an ambitious woman. And she has not been afraid to push back on President Trump regarding russia which has been a defining topic. Reporter and we have bob mueller on the list who continues the probe. And we have ruslan. These are the kinds of things that we sought to pick out. Has reallying that shaped and defined the conversation in the last month or month and a half has been the extraordinary revelations about sexualharassment and assault from a lot of powerful men across the industrys that we cover. How did that get incorporated . Reporter this is a late thing. And we started this process as early as january. And this discussion we are having about women in the workforce across every industry. And the women also in jobs that we dont see as often such as waitresses. In singling out people, it was difficult. Trying to think about who was in the moment. And we started with Harvey Weinstein and ashley judd and others going public. That was the tipping point. We continue to play it out every single day. Reckoning national and it is probably related. I know everyone at this table, we spent time thinking and talking about how to make this better. Julia and we have to talk about tech as well. Whether it is uber or softbank. He is there with uber that so many other things. Goingt know where he is to go next. Everyone wonders where is all of this money going to go. What i love about this is the photo or the image that you so rarely see. It would be impossible to not include elon musk and jeff bezos. A driverless car and a rocket simultaneously really shaped the ground. People we these will be hearing more from them Going Forward. It is not as though their stories are tying up in 2017. Reporter when thing i have been talking about is sexual harassment. I am proud that this list celebrates women who are persevering and pushing through in all areas. And we all are also talking about patty jenkins, the second woman to be given control as the director of a movie with a budget of over 2 million. Read we really want to celebrate women. And we are so thankful to the bloomberg journalists that got assist people. Joe great stuff. Julia we want to devote the entire show this weekend for a. Murphy, editor in chief. Thank you so much. You can read the full bloomberg 50 list of the individuals that drove the conversation this year in Bloomberg Businessweek this julie week. And it is time for the Bloomberg Business flash. Saudi aramco the Energy Minister spoke to bloomberg tv after the opec meeting. There is a government process. Looking at the ipo. I can to you that the government is on track. The company is on track to getting the ipo done in 2018. My advice is to stay tuned and you will get the news. Ipo would raise tens of billions of dollars and would be the largest on record. Warren buffetts fruit of the loom has joined the subscription bandwagon with fruit to your door. Customers can order a sixpack of briefs and have them delivered to their door. That is your business flash update. The only reason i did not laugh washat was because julia telling me about this story earlier. Joe now, i am giggling. What you need to know for tomorrow. This is bloomberg. For the averages and records again for the Dow Jones Industrial and the s p 500. The Dow Jones Industrial making back some of yesterdays losses. Breaking news. The blue apron ceo is stepping down. Brad dickerson will be his replacement. That company just went public recently and has not been performing very well. Do not miss this. James fuller speaking on the Economic Outlook in little rock, arkansas. And Robert Kaplan talks about economic development. In texas. Joe that does it for whatd you miss. Julia bloomberg you are watching bloomberg technology. Lets get a check of your first word news. The committee on taxation says the Senate Tax Bill will add 1 trillion to the federal deficit over a decade. It finds Economic Growth from the tax cut only will offset 407 billion dollars of the 1. 5 trillion total cost. Increasee bill will growth more than other models so far, but the analysis complicates the gop argument that the overhaul will pay for itself. House Republican Leaders plan to seek a two week spending bill to fund the government until december 22 two of lloyd a shutdown. Current spending is set to run out on december 8. The plan has not been finalized, but it will buy more time for negotiation with democrats on a longerterm funding plan. Trump will deliver his first state of the Union Address on january 30th. Paul ryan formally invited him today. He called it an opportunity to lay out the work that needs to be done