Will he address this in any way . Sarah we want full transparency. We will make a decision when and if that time becomes necessary. In terms of the state of the union i not going to get ahead of the president s address. I know you will eagerly tune in to see what is going to be included. We have addressed it every day we have been here. It is one of the questions you asked over and over again. That. Nd more on poll after poll, frankly no one cares about this issue. It is not the thing that keeps people up at night. My guess is that will be the focus of the union tomorrow. President speaks, president s are normally optimistic. What is the state of our union today . It is incredible. I think you will hear that in the president s remarks. We have an economy that is booming. Isis is on the run. There are some great things happening in this country. You can expect to hear the president talk about a lot of those. Not only the first year but the great things we will do in the next seven years after this. I want to go to the issue of black unemployment. Is the president going to start changing black unemployment . I have never heard of a targeted approach. Is the administration aware black unemployment from december, 6. 8 . White and implement is 3. 8 . Black unemployment continues to be higher, two times that of white unemployment. Is that something this administration is trying to fix . See from steps we have taken we are trying to fix unemployment for all americans. The president wants it to be better for everybody. We have made significant process progress in that in the regulations that have been cut, and certainly adding to that am of the tax reform legislation a president has been historic and what has happened. Why does he have an issue with jayz when he was talking in terms of black america . Sarah they are better than they have been. We are making progress. Look. We want every day to be better than the day before. Certainly for black americans, hispanic americans, this is a president who wants a life to be better for all americans and he is going to be pushing for that. I think you will hear him talk about that tomorrow night. The former attorney general eric holder described Andrew Mccabe as a dedicated Public Servant who has served the country well. Would you describe the president with the president described him . I am not going to describe him. I think we have talked about concerns we have with the actions he has taken. ,n terms of anything specific particularly news reports of today, i would refer you to the fbi. Past tweeze the president has put out, he does not to does not seem to be a big fan. I have not asked if he was disappointed. He did not play a role in that process. I will refer you to the fbi for specifics. Any one of the tweets in december said he is racing the clock to retire. Does the president believe he should be allowed to retire with full benefits . I would refer you to the theue ei for specific to fbi. You mentioned he was going to be in the first ladys box. I did not hear anything about the president s family. Which of the family will be there . In terms of family all of the president s children will be there. Along with the first lady. [an audible question audible question] will that be public . Sarah i would refer you to apartment of treasury for specifics on that. On the 5g. Sarin they are taking the lead. You should reject the department of treasury. Theres a lot of speculation about what might happen, whether there is a security case to make for one secure network. Experts are concerned about the idea of one nationalize network. Is that idea dead or alive . Ourh as we outlined in , we discussed the need for a secure network. We are in the earliest stages of the conversation. There are no decisions made on what that would look like, what role anyone would play in it. Simply the need for a secure network. That is the only part of the discussion we are up to now. there are a lot of things on the table. These are the earliest stages. There has been no decision made other than the fact, the need for a secure network. Be president talk about an urban revitalization plan . I am not going to get into the details. I do think it is something worth tuning in to. One last question. The president has touted black unemployment when faced of allegations of racism. Given those numbers, why do so many are so many uncomfortable . That is a question you would have to ask them. We expect to spend every day working to build a greater relationship in that community. And with all americans. This is a president who wants to lead for everybody. He wants to be the president of the United States. If you look at the policies he has enacted, you can see he is doing that. He is building an economy that helps every american. He is helping put isis on the run, which helps safety and security of all americans. He is helping to put an end to loopholes in our failed immigration system. Those things benefit all americans. Our is what we have done in first year. Thanks. That is sarah sanders. The daily press briefing. They talked about a number of subjects including the state of the union later this week. The theme is building a safe and proud america. She answered questions with regards to the departure of Andrew Mccabe. He was part of the investigation and a link between russia the president ial campaign. President ents dislikes them because his wife ran as a democrat. Sarah Huckabee Sanders distancing himself. We did see the fans of this claim with rod to saying last week he believed politically motivated Senior Leaders of the fbi have tainted the reputation for unbiased pursuit of justice. This is clearly brewing. The president has made his views clear on twitter on this. His departure was expected. We will keep you posted on further developments. Lets get back to the markets. Julie hyman has been tracking the moves. Julie we have been seeing stocks pulling back from the record close that we saw friday. Investors are turning their attention once again to the bond market. If you look at the bloomberg, the 10 year rose to its latest since april 2014. This looks like the yield competition. The pink line, the u. S. Aggregate index. The yield on that in blue. In white. Nd yield you see here, if you are looking for yield, you are getting it in the bond market in various places. Historically over the past several years, and we are seeing folks look elsewhere. There is also the effect of rising rates on different industries. One of the weakest, utilities. 500 yield more than the s p on average and carry high debt loads. It costs them more to service that debt. You see examples of the various utilities that are falling. The declines are nothing compared with another stock we have been tracking. Resorts, allegations surfaced friday that the founder and ceo sexually harassed employees. He has denied that. He stepped down as chairman of the Republican National committee. Officials in macau are also examining allegations. The twoday decline in the stock, 18 . Julia more investors to watch this week. Nafta negotiations wrapping up the latest round of talks. Tomorrow we have the first state of the union for President Trump. Wednesday, a rates decision from the fed as janet yellen hands over the reins to jerome powell. Back end rates track higher. Andave out of that amazon apple releasing after the bell. Any of these events could shake up the goldilocks environment. Have investors priced that in . Eric davidson, great to have you with us. Start by giving us an action plan for investors. How should they be looking at the markets . We are certainly in a goldilocks environment. Things are looking good for the consumer, and for corporate america. To extend on this super bowl, the question is, obviously the patriots are expected to win. The question is not are things going well, but what is priced in . There is not a lot of room for error here. Priceearnings are pretty rich. Spreads are pretty tight. Investors need to be guarding against complacency. I wonder what happens when earnings miss. Stocks tumble on allegations about steve wynn. The individual stock get punished or does it threatened to bring weakness to the group . What could bring weakness, the upper end of our target , may ber the s p 500 some sectors. The rise in yields, lets put that in context. A 27010 year treasury is a double, up 100 from where we were in january. That is when hundred 35 basis point move. Well have a correction in the stock market that in the 10 year treasury. These type of things are what could derail the good times investors are saying. , because ofestors this building complacency have let port folios unattended and maybe have gotten overweight in u. S. Stocks. Should they react . It doesnt look to me like late stage bull market. The brits here seems solid. We have a conversations about branching out into international equities. U. S. Investors remain underweight. Certainly on the u. S. Equity side there is opportunity that can still be found in industrials, financials, health care, consumer discretionary. International markets had a great year. Many investors are scared off and still underweight to where they should be an international and emerging markets. Investors should be looking in those areas as well. Back downs. Equities to the target weights. Scarlet do you want to be careful though . Given how much of an issue trade has become . Nafta negotiations wrapping up today, tariffs on solar panels, it is a sign of what is to come. Perhaps investors need to brace for this rhetoric. In the end, the effect was fairly minimal. People were expecting worse and got a more been relevant pennell the lent tariffs. Trade could be a derailer, as could immigration. While the United States is still a net importer, were are the second largest exporter in the world after china. We depend on global trade as well. As investors are considering domestically and abroad, overseas you find 15 times earnings, 13 times and emerging markets. While the u. S. Markets are at all times highs. These are markets that are still 25 below alltime highs. Spoke about mnuchin the benefits of a weaker dollar. At one point does it become a concern for inflation . Widen pointhat, at do you have higher yields in u. S. Treasuries become a problem for equity markets. Inflation is something we have not really seen in any form for several generations. Younger people really dont even know what it is. A weakening dollar is helpful but eventually, as we buy goods, that does factor into inflation and helps contribute to rising rates. We are not so concerned at this point. We are in a less low rate environment. If rates continue to move higher you start to have a crowding out issue. Scarlet millennials have seen some inflation. Netflix rates have gone up. Point well taken. Julia update required. Scarlet siding some progress, specifically why there is more work to be done around the issue of canada. Julia this is bloomberg markets. Ofrlet the sixth round nafta negotiations wrapping up today. Robert lighthizer striking a more positive note siding progress. There is more work to be done. We are progressing slowly we elwood to our citizens who are operating in uncertainty to move faster. We are now joined by michael mckee, who has been in montreal for the nafta negotiations. The theme here for the latest round, there were signs of flexibility. Nafta is saved for now. Maybe not. It is saved for the next month. Aty will meet in mexico city the end of february. A lot of their and thorny issues remains. We thought canadians tabled some Creative Ideas on those there on the issues, particularly in the area of autos to increase the cars by counting computer and heiser comet light in the u. S. Trade representative shot that down at the news conference. Heres what he had to say. Presentedomobile idea , when analyzed may actually lead to less regional content then we have now come if you are jobs in the United States, canada, and likely mexico. This is the opposite of what we are trying to do. Canadians tabled a proposal to deal with dispute resolution. While they began talking about the core issues, they reach no agreements and did not move a lot closer. They did make some agreements on lesser issues. There are 29 chapters and three close now. Suggesting maybe things are better than the u. S. Sees them. What about any progress on the sunset clause . That was a bone of contention. It seems to suggest there is optimism from the u. S. Side. Listening to those comments, it doesnt sound like there is much optimism. Where have they given ground . The u. S. Would like you to believe they have not given ground at all. Whether that is to play to the trout base or it is the case, hard to say at this point. Talking with reporters afterwards, he suggested he is generally pessimistic about things, even though he is willing to proceed. Scarlet the next round you mentioned could be in april in the u. S. Another potentially in canada. Was aered if there homefield advantage for canada. Did they make any more progress . The u. S. Was pressuring canada but they were insistent on calling them ideas. This was a response to u. S. To mans that somebody come up with a counter proposal to the u. S. Ideas. It was related to where the talks are. The next round will be in mexico city. They are scheduled to go to washington but this is a round by round decision. They are going to have to make progress or they may not make it to washington or canada and the next round after that. Julia what are the mexicans saying . They have elections in july. They hoped this would be wrapped up by march. What happens if we get to that mark . Thee is leaving this until election, does that work better than settling on something that is not beneficial for the mexicans . The mexicans are going to be under that pressure but they say they are willing to keep negotiating, which was not the initial stance. He has no objection to that. He said they will negotiate up to the midterms in november. Everyone paying playing to their bases. For that. What to expect from the first state of the Union Address. Are fastshortages reaching a crisis point. Have warnedies about days zero, april 12 unless they drastically cut back on usage or there is a rain which would be unusual for this time of year. The crisis follows three years of war rain that has resulted in the worst drought on record. They are bracing for the worst. Many have sold out of rain tanks. Most public swimming pools have closed, and dusty cars go through the city streets. Projects are running behind schedules and will not cover the shortfall, even if it can be avoided. Get used tove to because they can no longer rely on the winter rain. We will have to save water if our lives depend on it, because they do. Ollow me on twitter get the latest updates at ticktock. That was one of todays highlights from ticktock, streaming live on twitter. Markets are closing in new york. One of the big energy movers today come in natural gas. Overriding fears over high shale gas output as you can see. In metals, zinc is hitting a 10 year high, rising demand from china and hopes of infrastructure plan included in President Trumps state of the Union Address paying a part there. Delivery numbers, continuing a threeday losing streak. Now with Mark Crumpton. Mccabe woman who has received criticism from President Trump has stepped down and will be on leave until he retires in the spring according to a person familiar with the matter. There is evidence past officials at the of ei, including him were biased toward Hillary Clinton and against mr. Trump in the runup to last years president ial election. President trump is meeting with members of the Un Security Council to discuss evidence i ran is arming rebels in yemen. The president said we are helping the world. Guests include the u. S. Ambassador and more than a dozen foreign ambassadors including attendees from china, france, russia and the u. K. European union has told the u. K. Will not have any say in eu decisionmaking during the transition. The European Affairs minister approved a new set of orders. Bulgaria holds the rotating presidency. The deputy Prime Minister spoke to reporters in brussels. Trade, it comes to the the u. K. Will be expected to comply with eu trade policy. During that time they will not be able to have its own International Agreements in areas covered by eu law. Unless it agrees otherwise with the eu. Brexit runs until the end of 2020. Benjamin netanyahu was in moscow meeting with vladimir putin. They discussed irans expanding military presence in syria and lebanon. Of trying toan turn them into a missile site for strikes against israel. Russia and iran joined fortis forces to back bush are alassad. Dayal news 24 hours a powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Scarlet we turn now to President Trumps first aid of the Union Address. He said he will plan to reach across the aisle. For many years, we have been talking immigration. They never got anything done. Theoing to be far republicans dont have the votes to get it done in the other way. Hopefully the democrats will join us so we can do something great for daca and immigration generally. Scarlet with us now, the former director your of the Congressional Budget Office and the current president of the American Action for them. Great to speak with you. The president is going to frame his policy proposals as ways for the congrats and republicans to work together. What would he have to say for them to get on board . It is going to be a tough sell. He floated a proposal, and it was received poorly on capitol hill. Amorrow night gives him chance to take that to the american people, to go over the heads of congress to the population to see it his way. I think that is unlikely. This has been around a long time. The kind of thing he is proposing, they are things democrats view is nonstarters. Deal, a bipartisan Something Else is going to have to change. Julia what about Infrastructure Spending . I see commentary around the idea that it would be a win. Democrats would be on board with spending. But talking to hundred billion dollars, hoping to galvanize more money from localities in the private sector, talking 1 trillion from the federal government, it feels at a stretch for both sides. They are pretty far apart. I think there are three big issues. What do you call infrastructure, and what do you not . The more broadly you do find it the less you can do. An issue. Ing to be how do you galvanize private sector capital in the infrastructure area . There has been some success but nothing on the scale they are envisioning. Third, how do you pay for the part that is taxpayerfunded . Budgetce big difficulties. It is going to be harder to make a cell to republicans bigticket spending is in order. Andlet these are details they are never spelled out in the state of the union. Aislee reaches across the will the president lose his base . Will they care . I dont think it will harm his base. He didnt lose his base going to davos. I think everyone knows that you have to have 60 votes in the senate to get anything done. The based is not want the wantnment closed, doesnt basic services interrupted. He is going to have to reach out. That is business as usual. Posts,your blog correcting the new york times. It was a lively piece. An editorial was written in the new york times. You can have a view of the tax overhaul, and the reaction to but you are saying it is littered with inaccuracies and errors. What are you taking offense that . What did they get wrong . Factual error in how the repatriation works. This is not a voluntary repatriation. Every dollar of u. S. Earnings was deemed repatriated. Now they face the choice, do we bring it back or not . Apple bringing it back is good. It is better to use that capital in the u. S. Than outside. They read that wrong. As a logical matter, it is not fair to say apple got a break on the taxes. It was never going to pay the rate. That is why the money was parked outside of the United States. Those are core things i thought were flatly wrong or misleading in their analysis. Like something is better than nothing. And what would be the alternative. The one thing we have is the change in the system from worldwide to a territorial tax system. This was one of the critical elements that was missed. That is exactly right. It is different than just a cut in the rate. We dont know the magnitude of what will happen. Gone for as never worldwide territorial system. We are all unsure about the empirical impact of this. Current president of the American Action for him, a shameless plug, tune into special coverage of the state of the Union Address 9 00 eastern tomorrow. Up, half 1 billion stolen from the Cryptocurrency Exchange coin check. How did it happen . And what do they do to prevent future heists . Scarlet this is bloomberg markets. Julia time for our stock of the hour. One of the biggest drags is apple. The stock is on pace for its worst day of the year. X. Ind this, the iphone we also have earnings thursday. A lot of pressure here. The report is not new news. They are talking but the fact they have cut parts orders for suppliers. We have been hearing that for months. Relative to the quarter coming up, less about the quarter and more about guidance. The function here on apple, we are going to see for this current quarter, looking for 67. 1 billion in revenue. That probably represent 65 million iphones to be sold. Look at the growth. The last on they did that was 2015. Jpmorgan cutting numbers on suppliers. Thatf reports out there there may be some trouble water ahead for apple. What about the chart . Get through the data. It is telling you something data. I love the apple charge. They are predictable. Last week this was looking more bearish. , on the hundred day moving average, this is a chart of apple. We see this sideways range representing the uncertainty, today hitting that moving average, it is going to come down to this area of congestions. Issuing a sellll signal. If that can be held you will see this produce a move to the upside. If the sellers take control, you can see this dropdown. They have put up a good quarter, a good guide. We will keep an i on the chart. Thank you. One of the biggest heists in history. Hackers broke into a Cryptocurrency Exchange in tokyo and made off with half 1 billion in digital tokens. The that is raising questions about security of cryptocurrencies around the world. Discuss, why does this keep happening . The weak point for cryptocurrency trading is the place where it goes from one currency to another. The exchanges, primarily. Wallet. Ange is in a in this case they have a hot wallet connected to the internet. Coinbased, i did a story about them. They keep most in a cold wallet separated from the internet. Enough to handle customer requests. Did they simply not have the security protocols employees . Also the fact that from what i have read, it took several hours to work out the reserves of coins were not where they thought they should be. There are a lot of alarm bells. The incompetence was extremely high in this case. It is not an isolated incident. Thatulnerable moment is exchange. They are lightly regulated. The United States has licenses from every state. Money transfer licenses. Applieswonder how that in this case, but if you have a complaint you go to your stage. 1 not very well julia not very well. This is concerning for people who have decided to put money into crypto and currency and Institutional Investors as well. Cryptocurrencies have become an alternative to offshore banks. People are using it as their new swiss bank accounts. Valid use case for bitcoin and other cryptocurrencies, initially people thought they would be used to order pizza or by a carpet. Stuff. Do that it really has not caught on. It is volatile. I did talk to an investor for this story who runs a home office. He is cuttingedge am investing in cryptocurrency and blockchain. He is able to keep a lot of assets in this. It has tax benefits for companies that are perfectly legitimate. Julia this is not a surprise. We note this technology is being used for nefarious means. As it is a tax haven, it should be not a surprise. Steve mnuchin says we need to talk about this and come up with a solution. Is that practical . Regulators are looking at it. There was a hearing in congress about it. Think coordination is going to be important. There has been a tremendous amount of success over the past 1015 years cracking down on the old kind of tax haven in the caymans, or switzerland, where ever. Ae fact is, it does serve useful purpose and it does not have to be illegal. Thank you. Whackamole cryptocurrency. Up, Artificial Intelligence putting women and minorities at a disadvantage. Scarlet this is bloomberg markets. A dark site in machine learning. Determine the length of a prison sentence for who should get cancer treatment. I am talking about Artificial Intelligence. The ongoing conversation about workplace diversity, we spoke ferreting outbout these biases in ai data. Society with a biases. We all have some sort of bias. If we dont have diversity in the set of researchers programming ai not only will they collect data says that are biased without even thinking once theybias, but train models they may not even think to check for the biases. It affects marginalized communities historically marginalized communities. , women, people disabilities. Older people. Historicallyas experienced discrimination in society is more likely to be affected because the data that will be used to train ai models will be biased against these communities. Scarlet i spoke with tina about the issue. She explains how this came to light. There was a groundbreaking investigation in 2016 that found the Software Many state systems used for things like parole and sentencing was biased against defendants of color. It was finding alarming statistics affecting people causing them to be more likely to get longeror sentences. That woke up a lot of people. There was a highprofile case where Google Photo Software tagged to black people as guerrillas. There has been issues of bias against women. Researchers noticed a lot of the data sets people use on the internet for correlations were determining corleys asians like man is to Computer Programmer as woman is to homemaker. Those kinds of things are not just offensive, they can have reallife consequences. Sentencing and parole does and did. Woman is to homemaker can mean for software used to find candidates for Computer Programming jobs, it may model that it is more likely to look for a mill candidate and determine a female candidate is less likely to be a fit. This is also used about whether you get a home loan or a credit card. More and more people are at companies, using these models and algorithms. To the extent they produce results that are biased against women, people of color, age bias, that can have very negative implications for people who are being processed. Long will it take to get rid of these blind spots . It is a hard problem. A lot of smart people are working on it. Program on this. The mind. Microsoft as well. It is a complicated problem. A lot of these systems are black boxes. We get an answer from the system but cant extrapolate how they reach that conclusion. That makes it harder to and to reverse the decision or sue or something. You are seeing darpa putting a ai,of time into explainable asking people to build systems that you can determine how the system reached its outcome. That is going to be necessary as well. A lot of smart people are working on it but it is going to take a while to come up with solutions. There is different causes. There is going to need to be different ways to at least mitigated. It is not clear it is soluble in all cases. Now time for the business flash. A look at the business stories in the news now. Bill ackman it reported a net loss of 4 in 2017. 20 to . 7 down billion. Crypto hedge fund poly chain will offer a Public Offering in canada. That is your business update, this is bloomberg. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. In new york. 3 00 scarlet welcome to bloomberg markets. Julia live in bloomberg World Headquarters in new york for the next hour. Here of the top stories were covering. Sexual harassment allegations against steve wynn in the United States causing ripples on the other side of the world. Why curate is taking control of dr pepper. And more appreciation. The bull market is good for the economy, not just for shareholders. We are one hour from the close of trading. This is is as we see investors to detail Pay Attention to the bond market. Now at the highest since april 2014 investors are starting to question what do these rates mean . What is going to be the Ripple Effect . All three major averages are down. Another look at what is going on , he put outinko this chart looking at the gap. At the we are seeing it widest it has been since 2011. Does that mean we saw too much of a movement in the bull market . Now we are seeing too far of a balance in the other direction . So watch this space. Movers, theequity biggest drag is apple. Target forut in the the half of the first quarter. After thoseion allegations of Sexual Misconduct friday, we now have authorities investigating the matter. Dr pepper snapple, agreeing to be purchased, adding to the beverage brands. Shares are up 25 . This is a container deal. Acquiring, getting further into the blood Disorder Treatment is in this. This deal, 4. 8 oh yen dollars. Earnings still continuing. Aftered martin rising that forecast was ahead of estimates. Now more to the upside after earnings the estimates. Julia lets get a check of first word news. The u. S. Trade representative said he is not pleased with the base of negotiations to rewrite nafta. He spoke to reporters after talks in montreal. We are progressing slowly we elwood to our citizens operating in a state of uncertainty to move faster. As an u. S. Views nafta important agreement and says the sixth round of talks between canada, the United States, and mexico was a step forward. He has threatened to withdraw from the 24yearold pack. The president will be delivering a state of the Union Address. He will push for bipartisanship with democrats. The white house says the president will point to a robust economy and low unemployment in his first year on the job as well as benefits of a tax overhaul. Have detainedals 300 people accused of engaging in terrorist propaganda through social media. And interior minister said all of the suspects are accused of supporting the Syrian Kurdish militia. Steers stuck on a broken chair lift for several hours have been rescued by helicopter and mountain teams. The lifts stopped working because of technical problems. Were 33 feet above the ground. By 2700 journalists and analysts, 120 countries. This is bloomberg. Athat was the subject of horror movie not so long ago. It was the premise of a hall remove the. The fallout, spreading to the other side of the world. Future ofng the permits up for renewal. Plunging for a second straight day. He denies theion accusations. We are joined by brian edgar. Lets be clear. Is his license to operate at risk . Or just his plans to expand . A 2022 license. That is the risk, whether any regulators would affect the prospect of her new. Coming is 75 of revenue from this area. It is critical. Is it about one man . Particularly in the light of that number . Persona is linked to that. They are tightly tied. His name is on the building. Has been the visionary behind the development of these properties. Critical forbeen the company. I suppose if he was to take it to the Company Level you could look at whether the board did its job, looking at things carefully enough. What did you find . Gaming companies it was fair to say they are somewhat older, more mail and longer tenured. That may be subject to scrutiny. Independent directors will review whether or not these allegations are caused for further action. Scarlet compared to other Gaming Companies . Comparable. We have seen a number of theirts downgrading ratings. Morgan stanley comes to mind. Even analysts making movements are saying they are the best in class. What is the Rating Action related to it . Uncertainty in the man itself . It is about what the board of directions does with the succession. I think it may raise questions about succession. There must be a Succession Plan in place. Other executives have mentioned it. Has strong executives in the u. S. Operation as well. There is no specific plan at this point. Licenseat extent is a attached . It varies. Commission,s gaming outside of boston, exploring these investigations. They may work look at suitability in terms of conduct and background. If this is something they have scrutinized, they tend to do more with financial and corporate actions. We are entering the realm of the unknown. Scarlet is there any other company as reliant as seat on their ceo . Donald trump is similar. Though he is obviously president now. Sheldon adelson has been mentioned. It is a different saying. It is more pronounced in the u. S. It is still an issue above markets. Lets say the company gets through this. They cant really draw any conclusions from this. What impact do you see in terms of booking . And revenue . Is this going to be something customers dont want to spend time there anymore . I dont think it would happen to that extreme. Mgm is going to have a big benefit. A competing but disruptive property opening in february. Talents. A lot of i dont think the business goes away. The Biggest Issue is what happens with the massachusetts gaming license . Might try toators shine further scrutiny on that project and have discussions as to its future. Scarlet julia steve wynn has called the allegations preposterous. The allegations have been tied to Court Hearings regarding to the divorce of his exwife. There are a lot of different pieces here. There are different pieces. His exwife owns 9 . Director ofl 2015 a the company. She was on the board. Thesewe need to make points here. A complex situation. It is. Busy coming up, a emerging monday. From new york, this is bloomberg. Julia this is bloomberg markets. Scarlet time for the Bloomberg Business session. A former precious metal trader at ubs accused of manipulating markets. Eight people will be arrested for their roles. Also finds we announced. Tyson foods is joining highprofile backers in tech startups. A minorityhas taken stake. Bill investors include gates and richard branson. Fab. Soft acquires play the Company Tools are designed for developing use across platforms. No terms of the deal were disclosed. Twitter sales spiking after the company is shopping itself. Twitter is open to any and all conversations. Is your business update. Spacezero in on the mna with insight and analysis. Lets talk dr pepper. So many fascinating angles to this. Who gets what . Complicated. It was a brainteaser for us this morning. Kerry gets ultimate control of the company. Company and the investor will also have outside investment. Hey will sit behind this within that you have an Interesting Group of people, 1314 . They are going to have 13 to go with the special cash dividends. You end up with a diverse group. You have smaller holders which we are going to go into. Ou have a very big mixed he is like an oldschool merchant. He has done this before. Last time it was a Warren Buffett deal. That. An advisor on he rolled some money into this. He is in three places as an advisor. He is also putting new equity alongside jb. All the names are interesting. For coke ands mean pepsi . They are the publicly traded giants of their space . What do you expect from them . Both coke and pepsi, their , they are going to be looking to do mna of their own. Of athis does in terms firing line of a pepsi, if it gets into the retailers. Theirhen are able to put coffee into the walmart. That is what you will see. Julia we are getting a huge beverage distribution network. Buy andccess to best amazon. They acquire1, companies where you have these portfolios. They are able to put the doughnuts through. This is another thing that makes it fascinating. Everything in food is health and wellness. This is not. It is diversification. To some degree. Lets go the other way and talk about drugs. Billion dollars. Talk about that deal. The second deal in a short time. They have been one of the more abject dealmakers in the drug space. They failed twice on big deals in 2016 and 2017. Billione done well, 15 in 10 days. Like show the chart. Thes important in terms of information. Basis, coming out guns blazing. We are seeing a ton of health care activity. A lot of them eventually fell over. They were all happening earlier. This year it has come back. Health care has just been surging. I think they are on the prowl. Almost a 5 billion deal. None of them are going to be game changers. From jpmorgan, they are coming in. We will be talking to them more about the health care space. 6 3 00 scarlet dont forget to turn in tune in, this is bloomberg. Julia this is bloomberg markets. Scarlet time for options insight. Us, jim stricker uger. Re we have to talk about the this person keeps buying large blocks of options, betting the vix will spike. This individual is working again. There is a huge trend in volatility linked products. This particular investor has not been right in a while. History suggests eventually they will be right. I will say how this market has started the year, this massive run, we have seen more institutional clients have conversations about systematic , more so thaning we have any wild. New orders. You see them near alltime highs. It is potentially as good as it can get. Folks want to get long volatility and get back to hedging some portfolios. Amidst earnings season as well. Your trade is looking at a specific stock. Facebook in this case. What are you looking for from earnings . A solid report. The same structure with netflix. When you like a structure and it works, stay with it. This is an asymmetric market. Netflix one the intel. A large percentage, almost the largest ever, reporting to beat eps. This speaks to the stock being up small or up a lot. This market coming in and bidding back up. Options, we can take advantage of that. Specifically in facebook what that looks like is going out to march. Sell a 175, 165 foot spread. By the 165. Your most risk is that 10 point spread. You can size it appropriately. You do that, that strike you are movedg, facebook has not that much in a wild. We think Downside Risk mitigated , around alltime highs. Julia thank you. Ahead, why the recent rally in equities deserves more appreciation. From new york, this is bloomberg. Mark i am Mark Crumpton with first word news. President trumps frustration with the Russian Investigation boiled over on air force one last week after the top official warned about releasing a memo that could cut the probe. It reportedly happened as the president was traveling to davos. Mr. Trump was said to have erected in anger after learning stephen boyd warned it would be extraordinarily reckless to about the Justice Department related to the investigation. Any potential u. K. Trade deals negotiating during the 21month brexit transition period would be subject to eu approval. Michelle barnier made that clear in a conference with eu ministers today. She also defended the plan to have a brexit deal finalized by october. This is a major historic treaty, and it may take time for member state parliaments. It might take time for the bishop parliament ernest