See, we have we the best week for the s p 500 and the nasdaq sense 2016. These were all games last week. Even though the gains are tiny, they do stand out. The dow and the nasdaq earlier but in alltime highs. It will be interesting to see how the day plays out. We are going to see why these stand out. Week, the best week since december, its around tax reform and earnings season. We did not see a decline on a daily basis. Its a little bit of a breaking of trend. Shares of gopro, take a look at this, down 29 . They put up announcement, they are slashing revenues for the fourth quarter. They will be 20 below what is expected. 340expect revenues to be million. They are reducing the Global Workforce to 1000 people. Has been under pressure for a couple of years. It was more than a 90 staff. Now its a five dollars stock. Its something everybody is looking for. Lets look at some of the other movers. These are in the green. Positiveny put up a announcement. They say the fullyear forecast for profits is going to be better than expected by 7 . This after a very strong Holiday Season. Online sales were strong. People are talking about the idea that this Holiday Season was the best in a decade. The results would seem to back it up. Boost,is getting a macys not so much. We have the shares of seagate up. Than 4 any may own more of ripple. Hat is on the cryptocurrencies western you and union is up four points. Interestingly enough, take a look at the coin, down 15 . Even though we have going down plunging, they are trading higher on rebel hopes. The craze continues. Mark 90 minutes ago until the end of the session in europe. This comes after the biggest weekly rise since april. The stoxx 600 rose by 2 . That gets me perfectly onto this chart. National gauges in western europe. They had highs, including the swiss market and the ftse 100 index. These are the two charts. The blue line is the ftse. Interestingly, the valuations are below previous peaks, both indices hitting record highs today. Keep an eye on those valuations. Lets get to u. K. Spending. From martindates spencer and tesla. We have a warning from the set, providing a gloomy consumer snapshot for the christmas time. Chart, itsfrom the the seventh decline in a months. The drop reflects this inflation squeeze. Forounds up the worst year u. K. Spending since 2012. Lets stay with a u. K. I want to look at pound volatility. This is threemonth volatility. It has come down. It appears to be signaling they be a a brexit deal should piece of cake. Sterling has threemonth volatility. Even though it incorporates that summit, this is a deadline for the u. K. To reach that transition deal. Sterling could fall back into the 100 20s from the friday level. If the meeting fails to deliver, heads the verdict of the of currencies. Its fascinating to see the daily machinations of sterling. Vonnie thank you for that update. Back to the u. S. , you are either with the president or against them. President trump remains angry that his former strategist was speaking out. He forced a him or me moment. The house hits the ground running on the first day back at work. This week for shall as government funding runs out on january 19. Congress may be able to pass a shortterm spending bill. Joining us to talk about all of this is kevin cirilli. Want to talk about steve. Obviously, he knows the president really well. How precarious is his position . He may be outside the inner circle. Will he be in six months . Kevin apology was not accepted. Thats the message i heard. President issued an ultimatum to several top advisers, including chief policy adviser stephen miller, an ally of steve bannon. What does this matter if you are outside washington . Steve bannon would ultimately was the nationalistic advocate, the loudest advocate in the circle surrounding the present. With his role now in question and the conservative movement, there is no leading force driving and pushing for a nationalistic economic agenda. In january. Re only if you were a midterm candidate, or an incumbent, if you were courting steve bannon or key courting you, would you do that . Is he horrible now . Kevin thats a great question. It was evidenced by several of the former people who sought his endorsement for Midterm Election races. They no longer wanted. Just like the business world, its about money. Several donors, including the Mercer Family have cut ties with steve bannon. Thus the president making that choice. They are saying its steve bannon one knee. Book, there are a lot of facts in that book that are not really fast. The on the record interview from steve bannon is really the driving point home. What can we week, concentrate on . Things. Hree the deadline in order to avoid the government shutdown. Immigration is really festering. That could provide some little volatility. The second thing is to have to get that budget done by february 1. They need to set the spending levels for various agencies. But for a decrease in funding for some of these agencies. Then there is some talk about what the president is going to do for his second state of the union address. That will be at the end of the month. The National Football championship for College Football according to the latest , he might make an appearance at the game tonight. Vonnie you will be watching im sure. Thank you. Losing three ministers last would year, theresa may is taken up 2018 with a reshuffle. Brandon lewis is the conservative party chairman. Star under 40 becomes the conservative party vice chair. Josh join us is the chief. Joining this is the London Bureau chief. They are all still in their jobs. Boris johnson is awaiting confirmation. His last of those for to be confirmed. We will wait for that. Her, the mainoned thrust of this is about bringing in new blood, bringing in a more diverse and dynamic slate of mps. This partyg to be in role as a vice chairman of the party. Theyve got night of those. This is part of theresa may grabbing some turf. We can do diversity, we can reach out to the youth. We can capture some of those votes. We are thinking about this through the lens of brexit. That is what counts with the economy. Its not clear yet how she is managing that balance. Mark the Northern Island secretary is leaving for health reasons. For has had an effect brexit and the relationship with the party that is propping up the conservatives. This resignation, he is the Northern Island secretary. He had a crucial role in those talks. It was all hinging on the prop up to the government. He seems seven Good Relationship with them. He stayed up late in the night brokering a deal. Blow, somebody who understands the politics of Northern Island. Her whole government depends on the support of the unionists to survive. Mark is this a reshuffle from a position of strength . Now we are talking about she might find an extra. Described by george stande, she is trying to for her authority. She is stronger now than she was. Look at those top jobs. Horse johnson has been a huge problem. Hear. re still waiting to that could be the headline. It seems like he is in that role. Everybody else said the big roles stay. That touches something about her authority. She is in a stronger position, she is not completely in control. Can she change the perception that she is just about brexit . Off. S eager to back is this going to change things . There is an attempt to do that. Stood in thee steps of downing with the big line of new mps. They each had different portfolio. Theyre looking at different candidates. Things we want to do. I dont want to just be remembered as the person who did brexit. Investors,king at what is going to be the relationship between britain and the eu . Mark agile for our nigel farage chatted today. Business meeting have any significance . In thelayed huge role referendum, but does not have that platform. He is a recognizable voice is getting any publicity is a good thing. Im not sure anyone in the you can take that seriously. He does capture headlines. We can still follow what he said. The meeting was not exactly i to i. He adds some spice to the proceedings. Mark they would, thanks for joining us. Vonnie fantastic conversation. Lets check in on the first word news. Emma a fire broke out on the roof of trump tower. Firefighters responded and the fire was put under control. Two people were injured. President trump called it a small electrical fire. For therunning out partial shutdown of the u. S. Government. The next deadline is january 19. There far apart on a spending will. Immigration and the budget cap are the major issues. They may pass a shortterm spending measure. The government of egypt says the election will be held at the end of march. The president has not formally announced a second term. He will run and win. The french president is talking about the relationship. He is in china for a three day visit. He wants more balanced trade ties. Plan to spend billions of dollars on infrastructure between asia and europe. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Mark coming up, saudi arabia seems to have found its help in launching the biggest ipo ever. Which bank gets the call . This is bloomberg. Vonnie that is midtown manhattan, warming up just a little bit after the big freeze. There is london as well. Live from new york, im vonnie quinn. Mark this is Bloomberg Markets. Vonnie its time for the latest business flash. Big cuts on the way at gopro. Missedera maker had estimates. It will cost 200 jobs. The workforce will be reduced to less than 1000 people. They may be getting out of the drone business. Shares of coals are rising. They reported strong holiday sales. Sales rose 6. 9 . Outspokenrmans criticism of the sec has cost his hedge fund. He said the fund longtime auditor has stepped down. Comments aboute the sec after a center trading allegations. The claims were settled back in may. Mark great stuff. Still ahead in the next hour, we will be talking with Martin Gilbert from editing standard. He will get his thoughts on the bond market. This is bloomberg. Vonnie this is Bloomberg Markets from new york. Mark i am mark barton in london. Saudi arabia is taking it public. They will take the lead in managing the ipo. Morgan stanley also is serving as a global coordinator. Him we is this about capital . Ruth thats the hope. Next week we talked about other banks at a been added to the roster. Trillionlking about 2 if the government gets with they are looking at. Thats a number that will need a lot of banks. Mark give me an idea of the fees. Typically in these deals, when the government is involved, the fees are small. The banks can make commissions from the investors that they bring in. They are a fraction of what is usual based on other ipo stories. I worked on the biggest ipo in the galaxy. Vonnie have the banks settle on valuation . Will they provide the highest valuation . Ruth that plays a role. These valuation numbers that banks are putting together, people have said they are looking at 1. 5 trillion. All ofnt have access to the numbers yet. They dont know how fuel prices will pay out. Its a moving target. That target get refined in the lead up to the ipo. Some banks will go into pitch valuations. I would imagine the one that has the best valuation will get a nicer seat at the table. What are the other advantages . You could make new friends . Ruth we are wondering. To the Chinese Investment banks to roll . Do the chinese . Weve been hearing stories about China Building a stake. And it does seem like its leaning toward the u. S. Banks. If you look at our lead tables, the banks in this lineup then we have a narrow the ones that are on top of the ipo table. I have worked in the biggest deals that have the largest distribution networks. With a deal like this, you want to get the big banks on your side. Mark is this from the position of strength or weakness . Ruth they see increasing the cap edition. This is possibly the biggest deal. Last 10 years. It is definitely something where they feel the pressure and thats why they are looking at it. Of stories. A lot if you look at the premium they are talking about, that undervalues us. Trading, itstock is is fully valued. Mark come back and tell us about that. Ruth, thank you. Vonnie we are going to be speaking us to Martin Gilbert. This is bloomberg. Live from bloomberg world hecklers in new york, im vonnie quinn. Mark live from bloombergs new European Headquarters in the city of london, im mark barton. This is Bloomberg Markets. Lets check in on first word news. Emma chandra has more. Emma Stephen Bannon is trying to get back in president trumps good graces. He released a lengthy apology for suggesting he lived with russia. This came in a behind the scenes book that question president trumps fitness for office. Allies appeared on talk shows to defend him. Years. Vel talks in talks will be focused on north korea sending delegations to the olympics in south korea. At the same time, south korea will keep from underlining the u. S. s hardline for the north. Theation agency has raised death toll to 64 and eight of a boat sinking. Be a telling coast guard has rescued 86 people. Jfk problems at new yorks airport following a storm flooding at a terminal caused flight delays. It has left thousands of passengers stranded and others had to search for mountains of bags for their luggage. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Chandra. This is bloomberg. Mark china liberalized its control of the banking sector. Bloomberg bloomberg about the plan in china. We started discussions with andners about going out aiming up to 51 . Deflation allows it and so we are pursuing it. We want to continue to grow our business in china. What is the timeframe for that increase to 51 . It is back and forth discussions between our partners. We are happy with the experience we made with local partners. Will be a matter of months or so and hopefully we can resolve it. How does that set you up . Expand in china Going Forward once you have the 51 . . Sergio it really doesnt change our options. China anderations in it is more about financial agreement from a Strategic Point of view. We have been growing our business. Ambitionsago we set in china and we are on track to achieve it. We were 600 back in 2016. We will be around 1200 and 2018. We are in line with and max. We are in line with our plan. In in 2018. We are in line with our projections. Tonie lets get back now d. C. Policymaking. President trump is angry having lost the first week of the year to the book fire and fury o,. Hi our next guest is not all about the u. S. Presidency. Joining us with more is harvard professor and former u. S. Assistant secretary of defense. He is author also an author. We are glad to have joseph nye. It is taking a lot of the limelight right now. Joseph it certainly is. We have a different type of presidency in which the sideshow has become the main show. Vonnie when does this end, professor, or does it end . Does policy get made for the first term, or is it all about these First Six Months in the book that is mentioned . The First Six Months, there was a fair degree of chaos. President trump was new to government. His staff was new and as we now know was involved in internal back fighting. I think you could argue a number of things got sorted out when you head general kelly as the chief of staff and you also have general mattis as the secretary mcmastere and general insecurity. These are people who are used to discipline. It is interesting that you are getting a civilian regime that is run by people who learned from discipline in the military. Vonnie i want to ask about neoliberalism. Is it an internal crisis . I think the question of the liberal International Order which was created by harry truman and Dwight Eisenhower and others years ago, that was called into question by donald trump in the campaign. He has also called in question by many people who said populism was not just for trump but brexit and brinton and else britain and elsewhere. It is not over. We still do have an International Trading system, although it remains to see how well it will survive. We also have a degree of stability in the Monetary System internationally. It is not over, but shaken a bit. Mark i went to about brexit in a second. Giving you coined the term soft power, how has trumps first americaswer affected soft power around the world . Joseph soft power is the ability to get what you want through a traction. If you look at the public will see that you traction of the United States has gone down around the whole world. Trump has been bad for american soft power. What is more is his budget, which he calls a hard power budget or Mick Mulvaney calls at that. It cuts one third of the resources it was scheduled for soft power issues in the state department and so forth. It is not surprising the american soft power, as measured by polls, is down. Mark on the issue of standing in the world, you are probably aware that u. K. Rime minister theresa may as we speak is shaking up her cabinet. Given that brexit is a process that is ongoing, how is that affecting the u. K. s standing around the world . Good thatjoseph the standing t. If i said the position as a connector between europe and the United States. Oftain also had a position being a very important part of what was happening inside europe. Divorce instead of that has hurt britain. How well it will recover remains to be seen above the terms of the divorce. Mark it comes as the french resident is in china and you recently wrote a piece where it you postulated what is the best defense of chinas use of soft power programs, a sharp power tools . What is the answer to that . For an old idea which is information wa warfare. Sharp power can be coercive and competitive. The democracies have to use publicity and exposure when you for a soft power program, example chinas confucius institutes, which are being twisted for propaganda purposes by excluding discussion of the dalai lama or taiwan and so forth. Andhave to make that public say that anything that infringes on Academic Freedom is no longer soft power. That is a form of Information Warfare and we will not accept it. Vonnie we are preparing for elections around the world this year, not the least of which is the u. S. Midterm elections. Id like to get your thoughts on depending on those themes are they back or a different way and then if you would, there is a lot of chatter that Oprah Winfrey might run for president after last nights performance. Do you see that happening . Willh i doubt that opera one run for president. But whether you will see a swing back in the 2018 elections is quite plausible. There is a pattern of the out party having a recovery of sorts in the aftermath of a president ial election. That is accentuated by the reaction against president trump. To his base,ed which is 35 of the american public. That is not enough to get the kind of control that you need. It is plausible that the house might swing back toward the democrats in november 2018. Vonnie we have to leave it there. Our thanks to Professor Joseph nye. Is thelso the author of American Century over. Mark still ahead here on the plunges. H company why the Software Business is not helping. Shares down by 17 . This is bloomberg. Mark live from london, im mark barton. Vonnie in india, im vonnie quinn. S is bloomberg. Bloomberg markets. Fall today with lower sales. Thecompany also protected in future sales. Joining us with more is taylor riggs. Taylor shares down to the lowest in almost two years. We have a long year chart showing a significant drop today. The hp e softwares nest they acquired last year, and that unit, revenue came in at the lower end. They are forecasting for the year ending in october sales could fall from the group from 2 to 4 . Hpe software makes up half of the total revenue in the six month reported. Period. If that is reported, it will be a drag on the top line of growth. One analyst put it all into perspective. He said the main concern is playing out earlier than expected. You are seeing material top lines come through due to integration that is shifting the companys focus away from growing revenue and worrying about integrating that. The company talked about regional growth. In the americas in this reported of revenue had half coming from the americas. That is not a huge decline, but it is a small decline. The ceo says there are areas they would like to improve, highlighting sales executing sales in the americas. Mark this is the biggest tech thatny in the u. K. After purchase. Are they planning to expand any further . Through theing transcript of the call, the ceo did talk about future growth. We have a chart showing how big this Company Really is, even after the market declines. Today, they are surpassing stage biggest company. They did some highprofile moves to show that they are still excited about growth. We have a new director of mergers and acquisitions and the ceo saying they are hunting for new deals and seek new opportunities in the new role. Vonnie our thanks for the stock of the hour to taylor riggs peered still ahead, hans bishop the ceo of Juno Therapeutics is being called one of the comeback kids of tech. This is bloomberg. Mark live from london, im mark barton. Vonnie and im a bank win. Vonnie quinn. Joining us from the j. P. Morgan conference is bloombergs Erik Schatzker with a special guest. K i am here with hans bishop, the ceo of Juno Therapeutics. In the drugdeal world this morning and it is not you arecompany that juno. And not juvenilnot the idea behind it was to work with the leading hematology leader. We are good at the science of figuring out Manufacturing Technologies and have scaled them and we have global reach. Together, we think we are synergistic. Erik have you had a conversation about juno. Hans yes we have. Erik what should we look forward to in the future . Product is in a to get trial we expect approval for patients battling lymphoma. If it goes to trial it could be approved by the end of the year. We are also taking that drug and ofting it into earlier lines them foam and other areas. We are going to go into trial with patients with multiple myeloma. We will also be reporting our first data from trials. Erik all of the focus is on. Mmunotherapy what stands in the way of its approval in getting to market . There is one approved for a particular form of lymphoma, particularly pediatric. Also another inland foam a. In lymphoma. Sick and that are so live, wew months to are showing very high, complete response rates. Importantly, the drug is well tolerated. Erik better than those of your competitors . Live, we are showing very high,hans we , but we think so. But when we look at the toxicity , it is important. The reason why is most of the patients with this disease dont get treated in big academic medical centers. We think we can go to where the patients are. Erik it is going to be a crowded area. Others are seeking approval for applications. The longer they are in and you are not, the more entrenched they become p what can you do . Hans . What can you do . Hans the competition is cancer. Competition is good between companies because we will make a better therapies. If we are right that we have encouraging levels of efficacy without side effect penalties, drugs doctors and patients will want to use it. Erik you think that doctors will willingly drop the novartis drug or other drugs in favor of yours . Than i think there is more room for more than one drug. If you look at some patients in europe, many patients battling that disease. Those patients, we all need to do well. I do feel very confident that the profile we have means we will be highly competitive against others. Erik patients and doctors would agree with you that there are room for many therapies pier 1 potential therapy therapies. One potential therapy that poses risk is the offtheshelf therapy very what happens if those potentially begin to work and work better than yours . Hans they are more difficult to use. It is not clear they have. Ompetitive levels of efficacy one of the big challenges about them is to avoid my cells being rejected by yours. The patient has to be given heavy immunosuppression. That comes with lots of risk. We feel the data we have really points to an advantage and notmately doctors choose for convenience but will help the patient. Erik you describe one of the principal reasons why it has menus so far. Hans people are watching exactly how many patients are being treated. It has been several weeks since they were improved, particularly in lymphoma. It is too early to conclude that the first launch is fast or slope here we need to wait and see. Erik you talked about other things you are doing, what are some of the most exciting innovations in your r d pipeline . Hans we move to looking at how to make ctrs work. Most people would agree that treatments will change the way we treat blood cancers per we are to have the data in our hands and approvals. Ist we have not shown yet how we can use these medicines to treat lung cancer or Breast Cancer or a very and cancer. Indeed, it will be more difficult. There are different challenges that are presented. We are optimistic we can have a big impact. Erik how many years are we away from seeing the first result of the efforts . Hans we will publish first data from the efforts this year. Thate should not expect the first result will be anything like the first result in blood cancer. They have barriers of defense that we need to figure out how we knock down. Erik that is something to look forward to. What about the next batch of data . Hans we will see more data in earlier lines of disease p will have a data where the drug is given outside of the academic medical center. That is important for expanding reach for bigger groups of patients. We will also be treating patients and will have data. Erik we will be watching. Thank you very much. That is hans bishop. Vonnie thanks to bloombergs Erik Schatzker. He will be back with more great interviews from that conference. Mark in our next stop, we will be joined by Martin Gilbert, chief executive of aberdeen standard investment. Willoughby good enough to sustain . Will it be good enough to sustain . This is bloomberg. Mark it is 11 00 a. M. In new york, 4 00 p. M. In london, and 12 00 midnight in hong kong. There is 30 minutes left of the trading day. From bloombergs European Headquarters, im mark barton. Vonnie and im vonnie quinn. This is bloomberg marktes european close. Mark these other stories we are are watching. We speak with gilbert. Theresa may begins a Major Overhaul of her cabinet. She prepares for the next round of highpressure brexit talks. Have an exclusive interview on how the tax laws and changes