Technology specifically. We have investors and traders coming back and attack after that rotation out of it, a couple of times notably in the past week, most recently yesterday. The dow, not much changed, hitting a bit lower. Thats a different picture than we saw yesterday. Heres another way to look at it. You can look at it as value versus growth in this market. Heres a way to compare. The s p 500 pure value index and the pure growth index. In the gap between the two in terms of their percentage performance. And what we saw yesterday was the gap between the two, value beating growth by the most since the election. Its come down a little bit today, but still beating it by a fairly wide margin. Since again reflective of this rotation that weve been seeing again out of technology and into financials has been the trade. In terms of other groups on the move today, we are watching telecom and a number of executives are presenting at ubs conference today. Sprint, one of the sprint comments caught our eye. The cfo saying we intend to have the lowest wireless prices any talked about an improvement in but its in churn, perhaps concerned by continued pricing wars between these companies that is putting pressure on these stocks. Elsewhere, we are watching some of the entertainment companies. We have this agreement now price in a world of the u. K. To buy Regal Entertainment from 3. 6 billion, 23 a share. Shares trading almost at that level. The deal was are talking about late last week and there were reports it would be happening. We have helios and matheson, the over of movie past the owner of movie past after cinemark announced a Movie Subscription Service that would compete with movie past. Cinemarkrence is the owns movie theaters where helios and matheson and movie past is contingent upon making agreements with theaters. You see the big drop, cinemark, not much changed. Under the radar earnings related out with anre earnings outlook thats above estimates, the company seeing sales the could Beat Estimates. Lands end sales improving a year after he got of its ceo, there has been some ceo churn and g3 apparel also coming out with numbers that Beat Estimates here. It looks like the outlook is reasonably positive as well as we head into the holiday season. Scarlet the tail end of the earnings season. Islionaire ray dalio slamming the gop tax overhaul. He says the elimination of state and local tax elections will further divide the u. S. Laura davidson joins us from washington, d. C. Ray dalios bridgewater is based in connecticut and his criticism is that the removal of this deduction will widen income disparity. Lauren this is one of the issues that has been debated for weeks now. Under current law, you can deduct the income taxes you pay and your property taxes. But lawmakers decided look, were going to get rid of that has a way to pay for lower tax rates. They came up with a deal in the house and the senate even still deduct up to 10,000 of property taxes, but particularly the californians, where there is really high income taxes, not so high property taxes, looking to allow income Tax Deductions as well. Its going to be a key issue over the next week or two as house and Senate Republicans to down and negotiate out a final bill. About theant to ask alternative minimum tax bombshell, so said by the u. S. Chamber of commerce, their chief tax counsel. Talk to us about what happened, we are just assimilating the details of what was voted on on the weekend and a few people youre looking at this and going this was unexpected. Lauren some even said it was a mistake or clearly unintended. Late friday, the senate was negotiating their bill and they slipped in whats called the alternative minimum tax, for corporations and for individuals and basically what this would do tocompanies wouldnt be able take the research and Development Credit or full expensing, which is their ability to write off investments in one year. These are two things that republicans have said our good tax breaks and they want to keep in the tax code. The inadvertently made the melon void. Null and void. They want to get rid of this but they have to come up with revenue. The whole thing is the agenda the jenga tower. Are they able to pay for this because they have strong business interests saying this could really up and this whole thing. Scarlet great visual for the jenga tower. Laura davidson on capitol hill. Lets check in one bloomberg first word news. Mark germanys Prime Minister added his voice to the chorus of warnings against the u. S. Recognizing jerusalem as the capital of israel. Moveid today that the would not call the crisis, but fuel it. Use officials have said a possible recognition might come this week. Triggering arab and muslim criticism across the middle east. He asked germany and its eu partners continue to support a two state solution. Unions top diplomat says withhold in the landmark Nuclear Agreement with iran is a top priority for the block and warned that the uns withdrawal is counterproductive. He spoke in brussels today after a meeting with u. S. Secretary of state rex tillerson. He warned against turning a blind eye to tehrans actions in the middle east. We also know everyones destabilizing effect with exporting weapons and militia to syria, and their ongoing support for hezbollah, a terrorist organization. These issues and activities in iran cannot be ignored and cannot go unanswered. We intend to continue to take action to ensure iran understands this is not acceptable to us, and we look forward to working with European Partners in that regard as well. Correction, he said that of the landmark Nuclear Agreement is a top priority. Tosident trump has refused recertify the deal under the agreement tehran agreed to permit atomic programs in exchange for sanctions relief. Native american leaders are suing to block President Trumps decision to cut utahs bears a Years NationalBears Ears National monument by 85 . The tribes argued that the law only gives president s the ability to create a national monuments, not the ability to down size one. President trump also announced plans just ranked utahs grand share case Grand Staircase escalante monument. They are sweeping an area of 300 miles to check whether an object detected at 950 meters is a part of argentinas missing submarine. Went down nearly three weeks ago in the atlantic off the coast of patagonia. Search operations were canceled monday due to bad weather. U. S. And russian ships carrying remotely operated vehicles have also joined the search for the sub, which had 44 crew members. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Citron will bep, the big loser in this market rotation, a less defensive call on an exclusive interview, next. This is in berg bloomberg. Julia time for a bloomberg exclusive. Short seller andrew left strikes again. , citronre sliding Research Published a cautious listing seven reasons why it will fall to 50 in the shortterm and 25 in the longterm in this market orientation. They told us has no comment on citrons claims. Andrew left joins us now from l. A. Spots to talk about have very close virtually, lets talk about the rotation we are seeing in the tech sector. How far through do you think we are in this . Mr. Left historically speaking, we are in the second inning. One of the biggest mistakes i made as a traitor over 25 e trader over 25 years is you think its over. I think if this is a real rotation, which i believe it is, and we are in the early stages of it. Julia how many downsides, assuming this is a real rotation . Mr. Left it depends on the stock. Certain stocks that are raised towers of hope and optimism without any earnings underpinning. I like that, that was great. Number 1999, 2000, you saw stocks that went down 40 , down 50 . Accompanies a hotspot that does not make money, they have to watch out for this rotation. Theres going to be opportunities to buy expensive stocks and become less expensive and thats going to be the interesting time right now is deciding whats becoming cheap and whats becoming uninvestable. You said these guys have got no Pricing Power and their key Product Offering they put down to zero, effectively. My understand is the marketing that we see now spraying people with advertising is a dead model. You can pay zero for a very basic product as far as they are concerned, but if you want the features they offer, you have to pay up. What they are saying about no Pricing Power is not true. Mr. Left it is. They decided to focus on the small and mediumsized business. When you focus on that and not enterprise, you deal with a higher return customer. In order to keep up with that churn, you have to drop the price. I was here discussing shop if i shopify. They were actually able to raise prices on their customers last year, because they have a compelling Product Offering. When you are in such a highly competitive area that hotspot in, the only thing that differentiate you between the rest of the market is when you drop it to zero to try and introduce people to upsell them it shows an absolute weakness in our business. Julia what about the fact that you suggest that their inbound five hundred and the salesforce. Com, the growth trajectory we are seeing even with the decline we are talking about in growth is better than salesforce. Com at this stage. Mr. Left you are working often extremely small number. They are not building anything with sales force. I know they want to be a salesforce, and i can sit in this chair all day and say warren buffett, warren buffett. They are not salesforce. Julia they are in opposition was salesforce, im talking about the growth to directory that we are talking about is actually better. Mr. Left i dont have the notsforce numbers, but is at all. For a company that loses money the way they do, for the unknown conference to go from 35 growth to 10 growth shows they are heading up to the wall with numbers. Thatu are going to buy tower of optimism thinking theyre going to turn the corner because we are only in the beginning stages of the curve, you are not. You also see that coincide with the deceleration of domestic revenue. Thats not the only metric by itself. Its a full mosaic that i present that shows why the business is decelerating. They are already losing money. Whats that worth in a rotation . A decelerating business in north america the loses money thats offering their product for free right now that you see corporate defection. Thats also on the other side of bigger internet trends. Julia i want to move topics and talk to you about bitcoin, you tweeted out last week that Bitcoin Investment trust, short that and by bitcoin. The spread is over 40 and you expect that to close. Why . Now,eft its really close sooner than ever. Today for a while, you get opened this morning positively at 45 and sometime during intraday went down to 20 . Im not exactly sure as we speak right now what is, possibly in 30 , but as soon as futures come on the bitcoin market, we should see the price of the ecs or whatever form of derivative the trades, possibly 3 to 7 premium to Net Asset Value versus 35 . Its very compelling. Whenever that opens on gb tc. The risk is if you sure that without the hedge is you are short that coin bitcoin. Julia what do you think these features are going to be used for . More speculation or is it going to be Downside Pressure that we see and what is your price target on bitcoin . Irony, itsats the obvious speculation because the only alternative would be hedging. And no one is hedging bitcoins right now. Its not a commodity. Its going to be for speculation. What that does with the actual bitcoin market, who knows . It is such a black box, it is so much easier shorting companies that move that lose money and to try to find out how bitcoin is going to trade in the next three weeks. Tc, when that spread does open up, it does with the odds in your favorite short that if you want to buy bitcoin or short it, then you are short bitcoin for 30 to 40 higher. Julia andrew left, founder of citron research. Scarlet still ahead, the outlook for oil. We speak with Robert Thummel, who oversees more than 15 billion in energy assets. For 2018. Forecasting this is bloomberg. Scarlet oil prices are rising today is lower opec production and signs of shrieking u. S. Inventory boosted expectations for an end of the global surplus. ,oining us is Robert Thummel from Tortoise Capital advisors, which manages 15. 5 billion energy investment. Lets talk a little bit about the global inventory levels. There was a third a surplus that builds up after opec a couple of years ago decided to cut production, and withdrawn down on that. Where are we now in that cycle . Mr. Thummel were still in a surplus. Its one of the reasons that opec needed to extend the cut Production Cut through 2016. Through 2018, the surplus will erode away, which will be a good thing for oil prices. Julia it allowed some flexibility, when we see that balance appear, they can renegotiate and come back to the drawing board and decide what theyre going to do. Where does that leave oil prices in that kind of environment if we see the balance gone and they kind of talk about whats next . Mr. Thummel first and foremost, we think longerterm, you need more opec production and more u. S. Production, not in the next 18 months, but longerterm youre going to need both to grow the production volumes to fill the Global Oil Supply that we will have going forward. Wethe next 18 months or so, think oil prices are range bound between 55 and 65 a barrel, which is a great thing for opec producers and u. S. Oil producers as well, and the entire Energy Sector. Thea lets talk about sector. For equity stocks, they had a pretty tough time in the first half of this year from the Third Quarter was better and i think they were the best performers and they lacked the recovery that weve seen in oil prices. Saying some level of stabilization now, how do they perform and where should investors be looking . Mr. Thummel theres been a Cloud Business over in the Energy Sector and its been the opec meeting. Outcomeave a positive of the opec meeting and we think that kind goes away now and theres a lot rosier outlook for the Energy Sector. Cash flows are growing a we think its a great opportunity. Energy infrastructure is a great place to be. Stocks have underperformed not only the oil prices, but also the Energy Sector in general. His companies are solid companies that are growing their next year,in the offering investors a lot of high dividend yields as well. Interest rate environment where investors are looking for high dividends. Scarlet they stand to benefit. Mr. Thummel that was another cloud over the Energy Sector was tax reforms and thats a positive thing as well for energy of researcher companies that been removed. Scarlet the asking obvious question. What about geopolitical risk . For a while, it wait on oil prices, theres been so much ample supply. If you go back to balance, does that repair reappear . Mr. Thummel its friendly why there is potential upside in oil prices, because of geopolitical risk coming back into the oil price. There are a lot of factors that we could consider. , thingsistan referendum going on in iran and iraq, saudi arabia even. Geopolitical risk could boost prices we think going forward, especially to get back to inventories that are closer to the fiveyear average at normal levels. Julia talk about Market Limited partnerships. You briefly mentioned the benefits of tax reform. Elaborate on that and how investors get exposure to that in particular. We talk about this all the time on the show, there is opportunity here. The greatl one of things is that they hire they offer high yield. The own and operate energy of a structure investments. You can buy them directly or you can buy them through close and funds. We started the first close and fund called Tortoise EnergyInfrastructure Corporation have the Ticker Symbol is thank you g. We think theres a unique opportunity tyg. We are a corporation that owns the partnership. If the Corporate Tax rate declines, the benefit value of our fund goes up. Not a lot of people are talking about that, its a small space, but the yield on our funds are about 10 , thats a pretty attractive yield. Scarlet jim lvn lpn energy of researcher stocks. What about the e p guys . What looks less attractive right now . Mr. Thummel the Energy Sector is shifting to not outspending their cash flow. If you were in oil and gas producer and you are outspending your cash flow, we think thats going away. Investors are pretty much told the sector dont outspend your cash flow. If you are not disciplined oil or natural gas per, thats what less attractive for us. Scarlet no patience for those guys. Robert thummel from Tortoise Capital advisors. The bloombergto business flash, a look of at the biggest business stories in the news right now. U. S. Regulars are investigated whether banks helped hedge funds inflate returns. The sec wants to know if banks like Jpmorgan Citigroup proselytized to win business by offering bogus price quotes on hard to value bonds. The banks and the sec are not commenting. Optimism among the u. S. Top chief executives is a six year high, according to the latest Business Roundtable survey. Ceos expect a strong u. S. Economy to continue to 2018, roundtable chair jamie dimon says tax reform is quote critical of the u. S. To compete globally. Your Bloomberg Business flash update. Julia the bigger rival cme to bitcoins futures trading. Nextnd chairman joins us from new york. This is bloomberg. Scarlet from bloomberg, this is bloomberg markets. We have Commodity Markets closing in new york. Lets look at the movers starting with the metals. You can see they are slipping to the lowest level since the intraday since midseptember. Coop or, zinc and lead among the decliners today. Gold is falling, traders remain optimistic tax reform will boost corporate profits. There is also the fed meeting next week. The central bank is expected to raise interest rates. A look at future, they are fluctuating today. In thed move higher United States as the trading day continued. You also have traders waiting and anticipating u. S. Inventories data. Calendars, your Global Markets will start trading bitcoin futures. Way ahead of nasdaq glanced offer nasdaq futures next year. Us, great to have you with us. We seem to be talking about this nonstop. We were just talking, this is something that is moving. About being overexcited this compared to the interest you are seeing Institutional Investors . There is something with volatility, something that has had an amazing move in the physical coin itself. That captures the minds of those looking into the world, what is it i can trade. Where is volatility. I think it is an appropriate amount of interest. We know what it takes to bring a new contract to the marketplace. We start the futures. Settlements. Ble we have oversight and our own Regulatory Environment that builds over time. We will see institutions make more moves into bitcoin. Scarlet you started working there as a floor clerk. You have seen the exchange on the last 30 years or so. Compare and contrast the size of the potential market with other products you seen in the past. This is very small. The has a history of bringing new concepts and tools to manage risk to the marketplace. Vix is the best example. Havein the coverage we daily vix options records. Million 3. 1 million. That is remarkable. Bitcoin moved 400. We have we are realistic on our expectations. This is relatively small. What the professional investors are looking for is the volatility, measured by vix. Julia the word is cautiousness. Is there a first move or advantage here . It was in a race to the marketplace. Started six months ago. From all of the accounts that we followed, they came after us later to the game. Incredible, deep conversations. Both a collaborative effort to get comfortable with us being able to move forward and launch futures. It is happy to be launching sunday. Really, this was an effort for both of us working to get comfortable. Scarlet talk about the specific margin rules, functionality, that you will be applying to these bitcoin futures. And new to us. We clear error options and futures we rely on their expertise to set margin levels. Highis being set unusually. Totally understandable. We walk before we run. The occ has the same mentality. Occ watching volatility intraday, lets get through a couple of settlements. We have intraday bands and price protections. Our competitors reference that as well. That is pretty standard. Julia cash markets are for optimist futures markets are for pessimists. Do you think that is the way this works . There are those concerned about coin being volitional us malicious. We look at listed markets i would not necessarily the futures market is reserved for pessimists or optimists. Itselfe of expressing by buy and sell is what we believe then. One with regulatory scrutiny. I think that fits everybody. Scarlet the question with fascinatesis is what everyone, it is a cryptocurrency that is the province of people who want to avoid having their transactions shown in the public eye. It is for money launderers, for instance. How do you think that might change the nature of the players involved . Who might be part of the bitcoin universe that was not there before . Ourill take that partners at gemini, they know they are enduser. That might be the case in some other parts of the group globe. With that said, and then register trade futures on a listed futures exchange, and ultimately oversight from inside cfe, completely different opportunity. Are seeing questions raised about those making money, taxesl gains, not paying on it. How is it going to work . Will you work with regulators if they say these people have made gains on the futures. Will you work with the irs to make sure people are paying . We dont need to. Listed futures that are traded, they are tax losses. It is impossible. We do have an information sharing. We will know the enduser. We dont have to set up anything new. Julia automatic information sharing. Informationthere is sharing and ultimately our promise to show that information. Scarlet bring transparency to bitcoin. It is going to be an incredibly exciting next couple of weeks. Lets get your check of the headlines now. Told President Trump has the head of the Palestinian Authority and that authority plans to you move the u. S. Embassy to jerusalem. He warned mr. Trump the danger of taking that step. President erdogan said moving the embassy to jerusalem was a red line from muslims. Secretary david davis expects to have a plan in place to push divorce talks to the next level. We are now close to concluding the first legs of negotiatings and moving on to talk about future trade. We must move forward together. Our interest remains in particular on the issue of Northern Ireland and ireland, we want to protect all elements of the good friday belfast agreement. Mark scottish, welsh and british mps objected. Dave has guaranteed any deals made from Northern Ireland would apply to the entire u. K. The United Nations is ready to engage with president Bashar Alassad representatives. The eighth round of talks under special envoy restarted today after a weekend break. Is studying the invitation to the talks. Get ready to work longer before you can retire. The average retirement age will rise over the next ford decades. Powered by more than 2700 journalists and analysts in 120 countries. This is bloomberg. Coming up, no business like show business. We speak with the ceo of the Sports Capital about investing. This is bloomberg. Julia this is bloomberg markets. Scarlet the u. S. Global media and Communications Conference is underway in new york with representatives from 90 of the worlds leading companies attending. Jason kelly is there now with a special guest, who focuses on sports and entertainment. We are here at the conference. Im here with the founder of brewing capital management. You worked at nascar. Right now, tell us, where is the smart money looking . Media rise, the change in media distribution, what that means for the future of sports. Why is this a critical moment . The way media is being consumed, it is changing. Sports is so dependent. Distribution,l of sports is quite valuable. That could have an impact. The recent discussion has been around the big sports. It is great. For smaller sports to have a platform. Subscribers. ,000 they are doing wildly well. Through direct Technology Consumers have been able to consume things they want. One of the clear things we a premium placed on experiences. You invested against that. The world becomes fragmented. There are two things we are investing in. , gather large audience of people to have a common engagement. That is valuable. Live events is a good investment and something we invested in with on location. And the data that we are. Athering thet we are working with nfl broadcasting nfl games and 61 countries. We are marketing to one consumer at a time. The interaction with the consumer, we can change advertising hourly. Someday you are going to be selling mustard, catch up, and you will be able to build that relationship with the consumer. Futured analytics is the of business and also sports. I want you to go back to your nascar days. A wildly popular sport that may be goes underappreciated. It is different. Technology, they have done a great job changing this. You will experience the wind, the current. All the different digital aspects make that more encouraging. It is probably going to get on television. Now it can go direct to consumer. To small sports are going have opportunities that did not exist before. Think there are casual fans the way there used to be. Masters, watching the 10 years ago you might have watched the masters. Today you are going to consume what you want when you want. The extinction of the casual sports fan. You are going to have to focus on that relationship now. You can go deeper, longer and that should work well. That is why it is going to be critical to be great at direct marketing. A lot of eyes on the sports world this week. What is your take on where that is going . It is probably going in the way of gambling. Gambling on sports is a global phenomenon. It does a couple of things. It increases interest in the game. It makes every aspect interesting. Much like Fantasy Sports. It is a new revenue stream that could be massive. It is revenue stream for the government. Time that isr going to happen here in the United States. That has been a massive market, Fantasy Sports and he sports. Is that investable . It is a global game. It is very sticky. E sports is an emerging category. Pyne, great to be with you. Julia thank you jason. York. Nference here in new now it is time for our sector spider report, the focus on utilities under pressure. They are indeed. Down,d a quarter percent out praise outpacing the declines. It is not just today, by the way. Performance,t the it is paste to underperform. People have been pulling out money. If you look at it you middle of sheshe made a lovely if you focus on stocks session, there is outpacing those of others. Edison international down 13 . That is on speculation it could be hit with possible damages related to a spreading fire in southern california. It is in ventura. The governor has declared a state of emergency. Hundreds of homes have been destroyed. We have seen several other fires occur in california. There is concern about damaging that utility can incur when you see fires like this. In some cases they can be held liable, even if there is not negligence. It is something to keep an eye on. Analysts are split as to what effect it is going to have, and to get this decline is warranted or overdone. There is a debate going on about that. If you look at other utilities, they are trading lower as well. Ppl and American Electric power. Good step. Utilities helping to lead the decline. So our telecom stocks. Extending losses. You can see a nasdaq has just turned negative as well. Nowrally faded and we are negative across the major indexes. This is bloomberg. Scarlet this is bloomberg markets. Julia it is now time for the Bloomberg Business splash. Getting Largest Company a little bigger. A dream buying innovations. The price, 3. 3 billion in cash. The biggest brand and Natural Supplements in the United States. Silicon investor taking a leave of absence. Five woman made sexualharassment claims against him. He says hes will be vindicated. That is your business update. Emily chang from San Francisco who broke the story a couple of days ago. Give us a sense of the reaction. This is the first statement we are hearing from him. He is taking a leave of absence, taking a leave of absence from hyperloop. He has not apologized for these allegations. He has said he is going to pursue a lawsuit where he says he will be vindicated. A statement from sherpa capital, we recognize the convocation but we have never received a complaint. We are launching an investigation. Remember, we reported five women accused him of Sexual Assault or harassment. , a formerman colleague told us she was groped at a holiday party. These allegations are very serious. Hes a major democratic donor. Donated the money he gave to them to charity. We have seen a reaction from some political communities. We are talking to others, his investors. Again, all of this developing very fast. Quite the ripple effect. Thank you so much. Scarlet coming up, come consolidation. This is bloomberg. Julia its 3 00 in new york, 8 00 in london. Im julia chesley. Scarlet welcome to bloomberg markets. Julia we are live in bloomberg World Headquarters of the next hour. Here are the top stories we are covering. Banks in the crosshairs. Whether some lenders went too far to win over hedge fund clients. Ai versus warren buffett. By Machine Learning could play a point in 99 of investing in the future. We are one hour from the close of trading. Lets hope i dont lose any more of my equipment. You are a pro. The nasdaq has been the standout and continues to be in terms of relative performance. We are no longer seeing that strong rotation rebound in technology stocks. All three averages are trading lower. If you look at the groups on the move you are seeing two groups in particular more deeply in the red. Selling off to some extent all day but losses are worsening and now we have industrials that are also declining. Up a fifths now only of 1 , the only group gaining in the s p 500. Day, we are caused seeing more broad of a selloff. I wanted to highlight more in the s p 500. Edison international on concerns about that fire in southern california. The Staffing Company phase six accelerating Technology Risks with automation of various industries. Mattel down, toys r us is attempting to close some stores in the u. K. Foot locker is selling off as well. Delphi is the best performer in the s p 500. This is nowotive, known as delphi technology, active is the autonomous driving part of the business. It looks like analysts are pretty positive on the Delphi Technologies business. Finally, back into the bloomberg. Something else we have to highlight, the lack of yield curve as we see a flattening here. This is the five and 30 year spread. It is the flattest it has been since 2007. Less than 60 basis points. Really this trend we have been seeing is continuing. Scarlet pretty incredible. Thank you. Lets get you back to the global media and Communications Conference will return our focus to consolidation. Our executive at her is standing by with a special guest. Ubs, we are back here at the latest victim here is adam simpson of e. W. Scripps. You are three months into the job. Fresh meat. What have you learned . It is more complicated than it looks from the outside. The company is in great shape. We have been around for 180 years. Ura journalist yourself. What is the state of journalist now in your estimation across the platform you are working on . This is the golden age of media. There is more information than ever before. It is more difficult for those that actually practice journalism but i am all for the access to consumers, to read on the internet, to watch television. We are witnessing an evolution with technology bringing more information to consumers than ever before. Summerfcc loosening rules. Are you a buyer in this market . We are looking to execute our eyes and swap strategy. It is a terrific opportunity to take a look at our portfolio and identify ways we can sit with peers at a table and both walk out of the room with a more profitable operation. It is because of that technological innovation these rules have had to change. Some were outdated. We think it is a welcome result they are looking to loosen that. Execute as intend to much as we can to get deeper in the markets where we operate. Pick up a second or third station. Be more profitable and continue to invest in journalism scripps has been known for. Radio is 7 of your business. Does that stay the same . Radio is a consolidated marketplace already. We ended up in the Radio Business as a result of the journal transaction. We brought in more tv stations and the radio stations came with it. I dont see us going long in the being one of the consolidators. Like the business for now. You made some deals in the podcasting space. Were bullish about podcast. Why is that . I dont think you can walk down the street you cant walk a block without seeing people wearing earbuds. They are listening to something. Nexte podcasting as the important medium for the future of storytelling the news and information. Podcasting it is what a. M. Talk radio was for the previous generation. There is the ubiquity of the desire to connect through the spoken word. Podcasting is about leading in the podcasting space. You can see the business is quickly growing. Not only from the advertisers, big brand advertisers, but also from the brands now wanting to get content on podcasting. We announced we would be the exclusive partner with the Oprah Winfrey company, with oprahs new podcast. That has gone well, bringing great brand advertisers. We have been the official partner to the nfl. We announced today we are in a partnership with marvel to bring marvels first scripted podcast wolverine to stitcher premium, our listening platform. There is a real marketplace emerging for premium audio and we intend to lead it. As an as investors look at your company, there is the question around streaming. How do you fit in . What is the answer . How does this coexist in a world that is so fragmented . We dont think it is about cable lore over the air. We think that it is about all three. We are making moves now to make sure we get important shelf space on all three of those platforms. Consumers not likely are going to want to use that input button, that source button on the remote. Care whichr doesnt i think comes in from. It meets their needs, that they want to spend time with it. If that is delivered over the grit, if balance and that is delivered over the top or on cable like we deliver our local brands or our news business, we think it is about bringing it together in a way that is more convenient. Vocal have had some investors of late. Do you feel like your message is getting through at this point . Operating in is shorter and shorter cycles. This company has existed over 140 years. Usually in moments. In 2008 we spun out the networks. We know where that went with discovery. In 2014 we spun away our newspapers. The company has always been a good partner to investors. I expect we will continue to focus on creating shareholder value for a long time to come. On your new role. We will see you again. Julia thank you. That was jason kelly in new york. Lets check the headlines. First word news with mark crumpton. Once one of the liberal lines of the United StatesCongress Stepping down. John conyers the announcement during an interview on the detroit radio station. He has faced calls to leave the house following allegations of sexual misconduct. I am retiring. I want everyone to know how much i appreciate the support. Incredible support i have received from my supporters. Not only in my district but across the country as well. Conyers said whatever they are but they are not accurate or not true. Conyers endorsed his son to replace him. The rnc has thrown its Financial Support behind Alabama Senate nominee roy moore after President Trump endorsed him. Several women has been teased him of sexual misconduct. Rex tillersontate joined other foreign leaders for two days of nato discussions about Global Security challenges including north korea. They plan to discuss natos role in protecting stability and finding fighting extremism. Secretary tillerson spoke before the meeting. We look to a comprehensive discussion on how to strengthen this alliance, confirmed United States commitment to article five of the alliance, to understand better the joint plays between the eu and nato, which can only strengthen the security here and in europe. Secretary tillersons reference to the founding treaty says an attack against one member is an attack against all members. The International Olympic committee announced russian athletes will be invited to compete at the 2018 winter games but there anthem will not play, their flag will not fly in any metals will not accrue to the country medal count. It is the commendation of a threeyear probe into statesponsored doping. The kremlin has denied allegations it orchestrated the widespread abuse of performanceenhancing drugs. Global news powered by more than 2700 journalists and analysts in 120 countries. This is bloomberg. Julia thank you. President trump is said to be planning a waiver on moving the u. S. Embassy to jerusalem. That is from tel aviv to jerusalem. The plan is to move it with the construction timeline is uncertain. This is a Campaign Promise from President Trump. A sixmonth waiver has been in place. Despite speculation he was set to announce a timeline or further information about moving seemsbassy, key will it an act a further sixmonth waiver on that. A lot of people are arguing for caution on this decision. A lot of ripple effects. This is bloomberg. Scarlet this is bloomberg markets. Julia it is time for the business flash. J. P. Morgan chase and bank of america say trading revenues are down. Low volatility continues to sack revenue. Activity spiked following President Trumps surprising election win. Expect Investment Banking to decline this quarter. Thanks to a banks record year in trading and Investment Banking. The sixth biggest lenders have 11 billion of variable compensation. That is your business update. Scarlet Artificial Intelligence is transforming the investing landscape. Tens of thousands of jobs are now at risk. This is the latest subject in a bloomberg series called the future of investing. A Senior Editor for the investment team, who has taken charge of this project. Upendingt ai is conventional wisdom in the warnedng world including buffett species, big acquisitions destroy value. Data scientists and ai go through data going back to 1960, looking at big acquisitions. His old principle doesnt hold up. Major acquisitions dont destroy value over time. That is one example of how goagers are deploying ai to through the mountains of data that are now available and come up with trading ideas that are not available to the human mind. We cant do with the machines are now. That is the edge the machines have. There are two many ways to confine data to find new as thought insights. It is a struggle for firms. It is hard to do. Data scientists are expensive. You need to apply a scientific process. The firms that master it gain an edge. The game now is to develop expertise and put it within your arsenal of strategies so it can complement. Julia this is a huge trend. These are the pinnacle Data Analysis funds. It is meaningful that is the it is also not surprising. They are data handlers extraordinaire. We are seeing more and more hedge funds getting involved. How much of a head start do they have . They have a head start and expertise. They have a head start and resources. Other firms are big and successful to sigma them a renaissance. There are more. For these smaller funds trying to get involved, they have two struggled to find and hire the expertise and to come to grips with a new way of looking at the world, a more scientific approach. It is not just what looks good on paper. Julia they got to make money. Scarlet there is stuff we have been moving towards. The have to be limitations. Wags as profound as it is as a reenvision how you might look at equity, at the same time it has profound limitations. It is not smart. It doesnt have the ability to imagine future. It would have been useless in predicting the subprime market meltdown. If an event has not happened before in the same way it has no data to analyze. The scientist is dead without history. Where human beings will have a isal role in the era of ai understanding what might be coming next, and what ai can not see. That is where the science is trying to figure out. Future can look into the without having mountains of data to inform your machine. Julia imagination in judgment. Great to talk to you. Senior editor for u. S. Investing. Thank you for that. You can follow our ongoing series. I will tweet out that article. It is worth reading. Still ahead, time to invest in real estate. Looking at Digital Reality trusts up 40 year to date. This is bloomberg. Joining me today, kevin kelly. Julie you have been looking across this market. We have seeing all of the sector rotation. We have been talking about Technology Today at least. Financials as well. You have and looking at another group entirely. Real estate. What are you to take a look at this . The talk about the tax bill, we saw a great gdp print. That means corporations and consumers are starting to spend and could lead to rising rent. Started to see where are the performers . Data centers have been hot this year. Cloud computing, that is where people are going. You have seen the leadership, the largest name is called Digital Reality. You have seen the revenues go up this year, 17 . They acquired the only competition they had. It is a Real Estate Company but also technology. Selloffhave seen tech they have been caught and that. How big of a risk is that . Before yesterday we didnt think it was a big risk. They are really agnostic. Anyone can use them. They are just tethered to the growing space. Yesterday it sold off 7 . That was pretty precipitous. We saw the implied volatility spike 33 . It went from 18 to 24. It is back up to and a half percent. You can see it is tethered to technology more than people anticipated. What do you do with the stock . They aree seen yielding. They traded inverse of the 10 year. Gohave send the 10 year down. It gives 3. 3 dividend. That is fairly high. Up 15 on a stock price. With implied volatility you can go up to january of 2019 and selfie the 115 call. That is over 7. 5 7 . You keep that no matter what. 3 dividend, the options premium. It is great year for year. Thank you. Julia still ahead, a bloomberg exclusive. We speak with Mark Thompson about the future of media. Mark first word news according to a person familiar with the matter President Trump is planning to sign a sixmonth u. S. R on moving the embassy to jerusalem. According to the Palestinian News Agency president abbas warned President Trump of the danger of taking that step. Turkeys president said moving the embassy was a red line for muslims. Reemphasized her backing for the spanish Prime Ministers handling of the separatist crisis in catalonia. To m2 she kopelman at the Spanish Government for its approach in containing the separatist movement. The uns top human rights body passed a measure today that crimes against amenity have likely been committed against in myanmar. The human rights council