Us with mores with stories halfway through the trading day. This uptrend is continuing. The s p 500 has little changed. We have seen some weakness in Telecom Stocks that have been holding it back, health care is also on the downside today. Limitings their gains there and in the s p. But we could see a closing record for both that and the s p. Of individual stocks we are watching, twitter is seeing an interesting spike today. Up 4. 5 . There appears to be no concrete news regarding the company, but increasing citing speculation after disneys purchase of the fox assets. Pointing toers are a tweet from yesterday from Goldman Sachs ceo lloyd blankfein. And they say i dont know jack. Some are pointing to that as some sort of deal making, maybe nothing isut confirmed there. It is all speculation. But the stock is up in todays trading. Look at those telecoms ahead of that decision on Net Neutrality. Interesting, the stocks are not necessarily trading as you might expect. In other words, if there is a getting rid of Net Neutrality rules that are on the fccs books. That at least in theory with the positive or at t and verizon. Tradingthose stocks lower today, verizon downgraded to hold for valuations reasons, and on the flipside, netflix, which you think would be lower, is higher. Liberty is reporting that netflix has largely been absent from the latest debate. Because of its size of this point, it is less vulnerable to the repeal of those rules. And a look at the retailers today. The spending numbers for november were stronger than estimated. We also have Consumer Growth Partners and research talking about strength and Holiday Spending today. Macys, nordstrom, and cold are trading lower. Hls are trading lower. An exception today is tiffany, upgraded to buy. We could be seeing a european conglomerate coming into scoop that up. Thate thank you for conference of update. This is a live shot of the fcc vote there it is on the obamaera Net Neutrality rules they have been debating for about an hour and 15 minutes. The commission is expected to roll back those internet protections, but the vote is also expected to be along party lines. The democratic commissioners are expected to vote against the republicans. We will bring you updates as soon as we get them. And it is a 52. 4 billion deal that will combine two of the biggest players in hollywood. Disney buying a large piece of 21st century fox. It is a merger that promises to reach straight reshape the Entertainment Industry and healthy entertainment giant fight against digital rivals like netflix. Earlier, bob iger spoke with us. We asked what kind of potential still has on disneys distribution . About numberited of things. More content, more compelling ways, but this gives us a far greater global footprint. 21st century fox has done an amazing job of growing its International Businesses with its ownership of a piece of sky in europe that has roughly 23 million subscribers. Its ownership with star in india, with hundreds of millions of you were so month, of viewers a month, so this gives us greater International Reach than we have ever had before, and an ability to reach consumers directly. And it is the talent that comes with it, not just on the creative side, the creative talent fox has been in business with it will continue to be, but the management talent as well. We look very carefully at the weent in their company, and know them well, we have competed with them hard over the years and are looking forward to becoming colleague of ours colleagues of ours and running a great company. When we talk about synergies and cost savings, that is lacked into job cuts. Is that backed into job cuts again . There are synergies, and we will take a look at the overlap between businesses that are similar and look for efficiencies there. But the synergies and efficiencies come from multiple directions. Ultimately, we will create a lot of opportunity for a number of people within the fox organization, opportunities beyond the opportunities they have had today. We look forward to planning the integration of both companies improvingg to work the company for shareholders and to create longterm value. Out of can you expect sky . They have a division with sky news what do you want to do with the asset . Have you spent much time thinking about that . We have. First of all, 21st century fox will continue to pursue its andisition of all of sky, we are hopeful they will be successful in doing so. Sky is an amazing platform. Not only does it provide consumers with a great Consumer Experience in terms of axes to the program, but it creates a cess to thet ac program, but it creates a lot of great entertainment. We are pressed with their impressed with their user interface, the Value Proposition to their consumers, and that obviously is a real crown jewel in the asset of 21st century fox. We are looking forward to having the opportunity have to have sky be part of our company. Vonnie bob iger, on bloomberg tv earlier today. Managing partner at mediatech capital partners. I have heard two arguments that this overall strategy for disney is changing, it is going to be acquiring new labels, customers, international growth, and the other side of thing is saying this is the same, but on a bigger scale, legacy media. Scale,buzz word has been and that is a nonstarter. It is the content. Bob iger woke up. He has been trying to get into the digital internet world for 10 years and has not been successful. He woke up 18 months ago when all of a sudden, espn did a real money raiser, the most portion of disney, started losing money on the cable side. We had to get into the digital world. He pushed espn. The problem is we do not get billions of dollars from the Cable Companies for airing football games, you have to sell individual subscribers to streaming services. You do not have that dual revenue stream, if you will charge them for looking at the football games, you have to lay it off with advertising revenue. The viewers that espn has on streaming is miniscule compared to what they get on cable. Thing, but the right he is about 10 years too late. Vonnie we are talking about revenue. When will this start paying off for disney . A long way away. He has tremendous content, he is pulling off all of the disney content from netflix. Fox is doing the same thing if this deal goes through. Infringedll seriously netflixs growth, because they are major, major sources of top quality content. Whether they can equal the money netflix is paying them for those transmission rights with their own streaming services remains to be seen. The big, big benefit to disney that people are not stressing is disney does not have a Great International footprint. It has been parks and cruise ships, but does not have media footprints anywhere else in the world of any consequence. Fox does. Star in india is a huge potential market, sky will give them europe and the u. K. And some of asia as well, and that will be very, very important Going Forward for disney. Shery so generating much more fantastic content for its own platform, but is the next platform going to be concentrating on hulu . Is that its big white hope . I have skeptical of hulu. They will have to deal with comcast, which owns 30 , and time warner, which will be at t, win the Justice Department gives up the ghost on this challenge. I think hulu is not a starter, but that does not mean it cannot create their own who lose, and one of the things everyone has been waiting for is a high quality kids streaming service, that all of the disney content would be included on. Shery but you did not need to buy 21st century fox for that. Bought itut he because disney makes franchise movies mainly based on mation, and thought has fox has adult movies. Landscape regulation is also changing, with the doj trying to block the at t deal. How will that affect disney and fox . I do not think the boj has a the doj has a case against at t. That has not happened with comcast. That they have agreed to, the constraints go away next year for comcast. But i do not think you will see a big problem with price raising. Disney and fox really does not have any regulatory barrier. On that score, we are all watching the Net Neutrality vote right now. My bet is that in three or four years, there is going to be no fcc. It will be an ftc trade problem. , constraint the sec does not have the technology to know how to regulate the internet. Not have the technology to regulate the internet. It was put in place by Franklin Roosevelt and has no place in the 21st century. There is no one in the sec that understands what is going on in that understands what is going on in the 21st century in the internet. The federal trade commission regulates Information Services like the internet. What theyre then not be a mandate to show news . Would Congress Demand that . That will be on consumer demand. If they want to watch the news, no distributor will not be crazy enough to not broadcast news. Porter bancorp a managing partner at mediatech capital partners. Thank you for joining. Shery lets check in on the first word news this afternoon. Mark upton has more. Mark president Vladimir Putin says that accusations that President Trump colluded with russia have hurt the u. S. Political system. President putin spoke at the annual news conference, saying claims against mr. Trump have by political opponents to undermine his legitimacy. White house Officials SayVice President pence plans to delay his weekend departure to the middle east as Congress Near closer to a tax overhaul. The Vice President also plans to leave for egypt on tuesday so he can preside over the senate during a vote on the tax package. President trump and republican lawmakers are hoping for a vote early next week. British Prime Minister theresa may has joined other european and wrestled at a summit on security. The visit comes today after members of parliament, including some from her own conservative party, voted to change her plann legislation, which guarantees parliament will get a vote on a final deal for brexit. Eu withdrawalhe bill is making Good Progress through the house and congress. We are on course to deliver on brexit. Last nights vote in the house of commons raises question as to whether Prime Minister may can get enough backing for her vision of brexit. She says she can still get the bill on britains withdrawal from the eu through parliament. Prime minister may and senior members of the British Royal family joins survivors and family members at a Memorial Service for those who died in londonsred toe tower fire. The duke and duchess of cambridge joined some 1500 people at the old cathedral to mark six months since the fire that destroyed a residential. Ower block in west london 71 people were killed. 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. Shery . Shery coming up, around the world and monetary policy. More Central Banks take their turn in the spotlight after the feds rate hike yesterday. That not all of them are tightening. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. And im vonnie quinn. A big day for Central Banks is the European Central bank in the bank of england tread cautious week. Draghi sayst mario today that the ecb will most definitely not meet its goals, even in 2020. And the bank of england also spanning its key Interest Rate as it looks to break through in there. Negotiations more on the path of global monetary policy, lets bring in phil odonnell. Thank you for joining. As expected, except maybe a little bit disappointing on the inflation front, both in europe and here still. Phil they maintain their inflation rate, and still project three hikes for next year. In terms of yesterdays statement and press conference as well as the sep, it came in largely unexpected, but the markets took it dovish lee, not as hawkish as expected, especially with growth so robust. And at least sequential inflation starting to percolate. Forward think the path is any different than when he assumed what we assumed a few days ago. Shery you mentioned strong economic growth. How justified is it that they though as dovish, even we saw yesterday retail spending topping estimates . The surprise for us is they cut their yearend forecast for the Unemployment Rate only marginally, down to 3. 9 , if i recall. If you maintain this pace of growth, it is quite likely in our view that we could be a 3. 5 . R less by the end of next year it will be interesting to see how that plays out. That is one of the surprises from my view. Vonnie it must be so hard to call things, forecast rates, and offer advice because with the cisco plan that might be coming, we have an infrastructure plan that may or may not be coming in january depending on which senators are in or out, and monetary policywise, we are coming to the end of what that can do . Phil this is the time of your were street strategists like myself pay a lot of attention to year and forecast. When we think about all the competing forces that can push yields up or down, on one hand we have robust demand from foreign reserve managers, from likelity driven investors Insurance Companies and pension funds. Side, there isr this inflation question all the leading indicators no doubt are ones the fed is looking at, and they seem to be pointing to improvement in both sequential and yearoveryear inflation. The biggest change next year will come from supply. We expect, and this is a legacy of the Balance Sheet runoff on the fed, as well as the rising trajectory of the deficit. Even before accounting for the tax plan, we expected net treasury coupon supplies to rise by almost six he percent next year and for bill supply to rise eight flow 60 next year, and for bill supply to rise eight old. Eightfold that leads to lower bond prices and higher yield, a must we are unable to generate more demand than the robust demand we have today. Shery how do about from overseas play into the equation . William a lot will have to do with the value of the dollar. From reviewing street estimates, there are people out there who expected a weaker dollar that should raise Foreign Exchange reserves, and we estimate that toost 6575 almost 65 75 of that will flow back to the united states. That will maintain healthy demand, if, and only if the dollar weakens as many people. Xpect it to but given the magnitude of the increase in supply, i just struggle with the notion of how already robust demand is going to take another quantum leap higher in order to provide enough demand to keep rates even where they are today. We aret is exactly why skewed bearish lee on the outlook for next year and are thinking 10 year yields and up between 2. 75 and 3 . Shery and the curve, what kind of range in terms of william the curve is interesting, and janet yellen touched on that yesterday. If we see inflation and they have to aggressively tighten they havend the 3 projected, that could provide further flattening impetus for the yield curve. But the other thing is the whole notion of this term, premium, and if inflation starts to percolate. That could help lift the curve, and more often than not stevens the curve. That is an interesting question. Bill odonnell, managing director of u. S. Rates strategy at citi. Vonnie a live look at the fcc net on the obama era neutrality rules. This is bloomberg. Vonnie you are looking at a vote ont of the fcc the obama era Net Neutrality rules, rules designed to make the internet equal for all. What happens if the vote goes through . Our editor at large cory johnson has that answer. Cory just as government rules shaped the interstate highways, it also shapes the information highway. To explain the concept of Net Neutrality than a drive on the information superhighway . The drive . A beast, a [indiscernible] car as a metaphor for a movie on hulu. It hits the backbone of the internet at full speed, 100 gigabits a second. Fellow travelers are traveling the same road at the same fast speed, and till we reach the exit. That last mile is owned by a small group of Internet Service providers, like comcast, spectrum, verizon. Without Net Neutrality, the last mile will have different rules of the road. We might have been on the information superhighway at blazing fast speeds, but now we are heading for traffic. Can pay to motor right past everyone else, buying their own fast lane, over competitors. Net neutrality requires that last mile provider to treat everyone the same. Fcce public commissioners, led by ajit pai, want to abolish those rules, potentially letting isps decide the winners of the world road. Shery and could 2019 be the year passive overtakes active . Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Live from bloomberg World Headquarters in new york city, im vonnie quinn. Shery this is Bloomberg Markets. Lets get a check of the major averages. We are seeing paring back. The dow up 1 10 of 1 . Sessionse consecutive of gains, the s p 500 unchanged. It was gaining, but it was giving it is giving up those gains after senators put a final tax bill the senate. We are seeing the nasdaq up 2 10 of 1 . The highest level since november. We have more positive data today. Retail spending topping estimates. Coming after the fed hike rates yesterday. Vonnie which is interesting, traders meant to be looking past that. How could you not take it is a good sign . Lets get to the first word news with mark crumpton. A texas congressman will not run for reelection next year after being accused of sexual harassment. Republican Blake Farenthold is said to have told the party he is withdrawing from the ballot. Has launched an ethics investigation. Secretary of state Rex Tillerson find newu. S. Wants to ways to disrupt transnational criminal organizations. Met inry tillerson washington today, along with secretary of Homeland Security and several mexican officials for a highlevel talk on fighting crime. Tillerson says the discussions are aimed at finding strategic ideas for disrupting the multimillion dollar business of illegal drug trafficking. It was five years ago today that a gunman shot and killed 20 children and six adults at Sandy Hook Elementary School in connecticut. Residents they they are honoring the day, mostly in private reflection. Governor ordered flags statewide to fly at half staff. Rep the years, many relatives of the victims have dedicated themselves to Charity Charities in an effort to prevent gun violence. Syrias Government Team at the u. N. Sponsored peace talks said there will be no dialogue with the opposition as long as it insists on the removal of president bashar alassad. The comments came from the head of the delegation hours after called onyria envoy Vladimir Putin to have the courage to push his Syrian Government allies to accept new elections and a new constitution. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Vonnie mark crumpton, thank you for that. You are looking at a live shot of the sec vote on the obama era Net Neutrality rules. They are expected to roll back those internet protections. It would be a vote on party lines. We are on to the second vote. It could go on for as long as an hour. We will keep you updated. I also want to bring you a headline crossing the bloomberg now. House majority leader paul ryan seen there with his weekly news conference, he is saying that he is considering retiring after the 2018 midterms. This is politico reporting that paul ryan, speaker of the house, is considering retiring after the 2018 midterms. Let shery lets get back to the markets. Index investing is accelerating. Funds may beives managing more assets than their counterparts. Bloombergsuss is alan mirabella. Is this all because of how much cheaper it is to invest in passive . Yes. Absolutely. What you are seeing is a big shift. Why do i need to pay lots of money for an active manager who is not potentially meeting the market . The s p is up 19 . Stocks not something many pickers can achieve. And especially if they cost more money. The real question is if they are not meeting that benchmark, why should i pay . Vonnie i remember asking this question to bill, he pointed out that he had started something thesetely different, that shares in london, for example. Other managers as well. It has been a long time. What is happening is many active managers, especially at neutral Fund Companies which is known for its stock picking are going to lower their expenses to try to really bring in investors. It is more expensive to buy a fund that is active at a fidelity than it is to buy an index. When you look at the performance of eight fidelity fund, many of them have not done that great. Index funds are pretty big of a place to be because you are marking the market and youre basically saying, i am making 19 . We continue to see a market rally. What happens when you see a downturn . Those stock pickers could come to a rescue. Alan it is possible. People have been low old into this sense of security. Ima can you a lot of money, not doing a lot of work, if i am doing an index fund i leave it alone. Site is a big risk. That is a big risk. Stock pickers have to show they have great ideas that can exceed the markets and as one money manager told may, can you really have 50,000 great ideas a year . That is how many managers are out there trying to really come up with ideas for stocks. Vonnie it is the old story. If you are not one of the elite few, you will not get into with managers so therefore you may be in something passive. I wellpoint point is there too much money to have to manage at what point is there too much money to manage . They were considering downsizing . Rock Companies Like black are saying listen, we cant manage some of this money at the pace that what is coming in. Especially hedge fund managers. They are saying, we can take in as much money as possible. Can they continue to do that if the markets crash . Fund managers are realizing, how can i have a Portfolio Manager or 10 managing 10 million billion . It is a lot of choices. Vonnie it would almost be good for the industry if there were to be another downturn. Or if the stock market as crazy as that sounds. Alan two volatility issue probably would help. If you are person in the index, you will be shedding tears. Vonnie great story. A fantastic twoweek series from the team at bloomberg news. Breaking news, sec chairman has announced votes for his proposal. We have been watching this very closely. The Net Neutrality rules from the obama era from 2015 physically being overturned. He needed three votes. Obviously, it is a small commission. It was a vote on party lines. The republicans voted to kill the open web rules, and the democrats voted not to. Obviously, the republicans are winning the day. We will see what is next when it comes to Net Neutrality. Coming up, uber facing another courtroom showdown. Why one of its investors is accusing the company of ignoring red flags in its 680 million acquisition of auto. This is bloomberg. Welcome back. This is Bloomberg Markets. Vonnie im vonnie quinn. It is time for our stock of the hour. Plunging, shares appear one on case with their worst day in 18 years. Doolittles, abigail joins us. How bad was the quarter . Abigail it tells us that investors think it was a disaster. May missed earnings by 30 . They beat sales. That points to margin compression. Top into the per into the bloomberg and see how bad it is. Financialinance analysis. We see in 2014, they were making one dollar per share in earnings. For 2018, estimated to be closer to . 20. That has to do with spending for online. They have been trying to beef up the online presence. They have done pretty well but they have competition from wayfarer, home goods, and apparently, black friday was solid for them. The first two weeks of december, not so good. They are talking about a merchandise mix. That is weighing on sentiment Going Forward. Vonnie where is the hope . Abigail the hope is the turnaround plan. Fromve a new ceo who comes sears holdings. You would make the case i he likes the painful retail sort stories. If we take a look at this chart in the lumbar, one piece of the story is to actually close stores. If we take a look here at this thehart of the store persistence here for pier 1, we will see that they are excuse me, clicking up the number looking at the number of locations, a decline in 2017. They have about 1000 stores. That is one piece they need to turn around. Plus, inventories. Inventories are on the decline. 400 80 million last year. 417 million this year. If that continues to go down, that is a good thing for retail. They have a lot to improve. Shares need to hold four dollars and not take another big leg lower. Vonnie abigail doolittle, i was about to look at the website, but i better not. Thank you for that. Shery yet another lawsuit has been levied at uber, this time by one of its own investors. The company is accused of failing to review the 680 million acquisition of auto, the Self Driving Technology from that want that was accused of revealing secrets of output alphabets google. The ceo joins us of messaging that may be at the heart of ubers controversial internal communications. Great to have you with us. It was suddenly given a star role. How do you respond to arguments the your app undermines need for documentation of the workplace and could make this worse . As indicates uber . Joe thanks for having me. I dont know we have a starring role. This is a big stage. , we have beenckr wanting to communicate securely and privately. About hiding anything. This is about the responsible use and employment and management of encourage encryption. We feel comfortable about this phase of our company. And open conversation is an important process. Shery why do you need private communications at work . Joel lets think about this. I a security geek. We would always have things i will get to geeky for you. That translates to journalists politiciansrces, have opposition research. You can go down the list where we have had communications always. Now, we have simple, easy to place tools in the enterprise. There is no need to ever be legal or regulatory requirement, it is a flexible twill that can be used responsibly. To be being hit from all sides. Uber has been hacked from the outside or in have heard they paid off the hackers. To erase the data that was stolen. Were alleginghey the proprietary data was stolen by and ask employee. How confirms guide themselves from being hit from all sides . Joel it is important to talk does what we do is we use cryptography, and we eliminate a server. This is a new way to communicate and a new way to protect communications. These products have been brought into the enterprise the end that app store or personal devices. And void of stomping up the use of personal devices, organizations have to have a point of view and take control over the use of these encrypted tools are that is what we are doing. This is the difference that wickr does. We have managed it and the plated with requirements. Rather than let it seek into the environment, you have to take a point of view and have a practice practical stance. Shery we are still waiting for exemployeerom an that accuses uber of having a secret server. Bet letter is going to released tomorrow. How problematic could this be for the company . It is theill think state same story. Math is agnostic. This is the way we will be. We connect we can assume that there will be Autonomous Vehicles and that is how we will transport ourselves, there is going to be communications for data transports. This is the future. This isnt about it being problematic for wickr. This is raising awareness and making sure we are having a productive conversation on how to use of the most powerful encryption to protect data and use it responsibly. The fact is, for 20 years, i have been working with companies to play defense against the north koreans, the chinese, and a europeane there is country that likes to influence a effect elections, and it has been a losing battle. We use Service Providers that have to get access to our data. Any time we create a path to our data, we have to understand the bad guys are going to use that same path. With wickr and the technology we use come of that path is not there. Wickr will never have access to the data. We cant monetize it. It is a different Business Model. It is the only Business Model that will secure your data. Shery uber has been hit. Bymo claims it had been hit exemployee. What are the first steps these companies should take once they realize they have been compromised . A securityere is incident, usually a Mature Organization will have an Incident Response planned. Plan. They need to make sure they are not listening to the data. On a more strategic level, it goes back to what i was saying. We have been trying to secure our data by hiring humans to manage and configure products that have been unsuccessful in protecting our most Sensitive Data. The key is to rely on math. The key is to have mathematically certain processes and tools that eliminate that data as a potential attack surface. Data minimization is a huge part of a corporate cibe cyber strategy. Shery especially when it comes to smaller businesses. What challenges do they face in order to be protected . Joel i think the biggest it goes back to humans. Is a colossal shortage of technical talent that can be deployed. To protect Sensitive Data appeared to be honest, a lot of them live and work here for Companies Like uber and google and facebook. Ze business, ii think that is a losing battle. Find simple to deploy and relying on math rather than human configurations is a really comfortable thing for smaller businesses. That is why we see a lot of Small Businesses using our tool. Shery does the government get involved in helping the private sector with these challenges . Reallye have a really, healthy and active relationship with the government at all levels. Andcially when it comes, the tail end of the 2016 elections, we have been working with Campaign Committees and doing everything we can to make sure we understand their point of view and give them the ability to deploy tools that are becky benefits but keep information away from foreign entities. We have been really leaning in to find ways to protect our government. The government understands strong encourage encryption. This has been an important part of how we protect our most Sensitive Data for years. Shery does this mean from everything you have said, then in the future, we will see these it be or data, should there for a short period of time . Joel we are really seeing that. A real process after the elections is to have 30 day retention and have 30 take 30 day retention periods. A more interesting point, when you say in the future and you use the word email, i have a 15yearold daughter who doesnt even know what email is. The most important thing is this is our Computing DeviceGoing Forward. People use their thumbs like it is their voice. It is protecting meds messaging that i think is critical for us Going Forward. Shery great to have you with us. Oel wallenstrom ceo of wickr vonnie it is time for the Bloomberg Business flash. Canadianidelitys funds are surging on a strategy that is that specifically dismisses Warren Buffetts strategy. Mark smail is focusing on market extremes, including companies that are too. Funds returned more than 17 year today and his newest funds have raised more than 300 Million Dollars since its launch which was november 1. Pharmaceuticals surging today. That is more than 25 of its workforce. It is also suspending the dividends. The company struggling under 35 billion dollars with of debt. That is your latest bloomberg fish Bloomberg Business flash update. The oh ecbd to join is facing hurdles to we will speak with one Group Leading the charge against the membership bid. This is bloomberg. Vonnie the meeting which was being held to discuss Net Neutrality and take on a vote and to take a vote has been temporarily adjourned, due to a security threat. The chair who had enough votes to overturn the ruling, says that the threat is unspecified and the vote will take place once things calmed down. It is not quite clear what the threat is. But it is on the advice of security. We will keep you posted. Shery perus bid to join the organization for Economic Cooperation and development, is facing a major hurdle. Is attempting to block that acceptance. A granary and is among several groups. Fromng us now on the phone peru is Bond Holders Association spokesperson, carlos anderson. Thank you for joining us. This seems like a valuation dispute. The peruvian government does to reevaluate the bonds. What is wrong with the methodology . Carlos everything is wrong with the methodology. Rather than just saying this, let me give your fax. A couple weeks ago, the minister of finance provided us with examples of revelations. We have one case where the they had land and they were given bonds. These bonds, according to the ministry of finance, are worth basically 0. 01 peruvian cents. Basically zero. If you look at the details, it has been wrong from the beginning. Supposedly, it was the it was such a glaring mistake that the government wanted to correct it. In order to conceal the real fact that they have no willingness to pay. Vonnie we will have to shery we will have to leave it there. We are running out of time. That was spokesperson, carlos anderson. I give for joining us. Will behouse minority our guest on Bloomberg Markets. With the latest on the tax bill. Look on how quick markets are faring as we head toward the 1 00 hour. They have erased all of their gains. You can always watch bloomberg tv on your terminal. This is bloomberg. Shery it is 1 00 in washington. 2 00 a. M. In hong kong. From bloombergs World Headquarters in new york, im shery ahn. Im kevins a david westin. Look him to Bloomberg Markets balance of power. Welcome to Bloomberg Markets balance of power. Shery here are the top stories. Tax overhaul back in jeopardy. Marco rubioenators and Susan Collins are criticizing tax cuts for the highest earners. The fcc was voting on Net Neutrality this morning but the meeting was adjourned moments because of an unspecified security fed. We will have the latest. Theys enthusiasts are preparing for battle in theington to protect cryptocurrency from a new regulation and tax reporting requirements. A deeper look at the lobbying group and gearing up for a fight. Shery