The seats. It has given the conservatives of break. Not in many seats, which are and by the labour party some liberal democrats in brexit voting areas. David we have over a month to go until the election. The poles of indicated the tories are ahead, but to those nationwide polls count for much in england . Therese they count for something. It is a substantial lead. The polls are not constituency by constituency. This is a winner take all system. What we can say is it is looking increasingly like a two party race rather than back in may when we saw four parties all within touching distance of each other. I think the conservatives will feel comfortable. They will not feel confident. A lot of this election depends on what happens to some of those lead voting areas the conservatives need to win if theyre going to have the kind of comfortable majority Boris Johnson wants to get this deal through and govern and legislate without substantial opposition. David thank you so much to therese rafael in london. Now we turn to Damian Sassower in new york. We are talking about hong kong. Five months in and it gets even more violent. Damian this was the most violent day since the protests started in june. 90 arrests. Two people in critical condition. One person on the air set on fire. What does that mean as far as trade in china . We saw some data overnight. China is struggling to stimulate growth. Slower than what we do expect for this time of year, even given the seasonal weakness. You have ip. If you look across the broader em spectrum, it has been week. Mexico weaker than expected. More of the same on wednesday. David how is this translating into the yuan and the strength of the yuan . Of the onlys one major currencies up versus the dollar amidst this progress of china trade talk. After today you have seen it go back through the psychological seven handle. It is a giveandtake backandforth between trump tweets and whatever comes next in terms of trade talks. David hong kong is in a recession already. The stock market took a real hit. To what extent does hong kong affect the larger chinese economy. Damian it is one of the largest hubs for airfreight globally. It is widely considered to be the gate to mainland china. Looking at shares, looking at through trying to break the 3000 barrier. Equity prices are struggling. You will see more rate cuts coming out of china for the foreseeable future. I do not see how they can get around it. David Damian Sassower. Always great to have him with us. Now we want to go to madrid and maria tadeo. I did not think they could get more confusing and spain, but i think they managed it in the elections. Maria it did and the situation is very messy. Election,there was an supposed to be the election that would end the deadlock. If you look at the results, it looks difficult Going Forward for the spanish Prime Minister, the socialist Pedro Sanchez who won the election but lost seats. It is unclear what kind of government he will be able to form, if ever. If he turns to the left, he is running short of vote. If he tries to form a grand coalition with his rivals, that looks very unlikely. Unclear where he goes from here. Not a good night. What we are seeing is more fragmentation in the spanish parliament, more nationalists entering the Spanish Congress and a nation that is very tired and frustrated by the political class. David frustration. Is that what translated into the rise of the right . I understand the right of center party gained while the socialist party lost. Maria they did. This is a spectacular situation because this was a party that did not exist a year ago. They made major gains yesterday almost doubled the number of seats. Two things that paid off for them. One is the fact that many spaniards are frustrated and tired. Four elections in four years. They feel the old traditional parties no longer work. And the situation playing off in the spanish political life. They promised there would be tops on the catalans and they would ensure the nation stays together. The idea of National Unity still paying off at the polls. David thanks to maria tadeo reporting from madrid. Now lets get a check of how markets are reacting. Here is abigail doolittle. Take me through this. When i first came in, today was trump pouring cold water on trade. Is that still the case . Abigial i think that is why we have stocks lower. The s p 500 was on pace for its worst day in a month. Now off of those lows but a little but of a bearish tone. O weighing on markets interesting what you and Damian Sassower were talking about and what you said about the hang seng down 2. 6 worst day since august. The shanghai composite down last. When you see that bearish activity in the asian market, it is a Global Market system. One of our contributors to charting futures likes to talk about you have to look at all the markets together. If you continue to see weakness for those markets, it could bleed into the u. S. David help me sort out what is a direction of things going on geopolitically as opposed to just taking a breather. The markets are ramping up, and at some point they selloff a little bit. Abigial in the u. S. We are seeing more of a breather. We are seeing hope around trade right now with President Trump saying the u. S. Has not agreed to those rollbacks of tariffs, a little bit of a negative. Probably more of a breather along the lines of what you are seeing. If we see a continuation of this , President Trump saying there will not be a trade deal or if things get more violent in hong kong, you could see that start away on the markets, something to keep an eye on. Not semifrom the standpoint it will hit the corporate profit it ink, but if you see asia could bleed over to europe and the u. S. David thanks a much abigail doolittle. Now we turn to Mark Crumpton with bloomberg first word news. Mark the former u. S. Ambassador to United Nations is x white house chief of staff john kelly and former secretary of state Rex Tillerson tried to undermine President Trump. Nikki haley says the two told her that when they resisted the president , they were trying to save the country. That is according to nikki haleys new book. U. S. Congressman peter king is calling it quits after 14 terms. The new york republican is a former chairman of the House Homeland Security committee. Congressman kings the 20th member of the party from the house to plan an exit next year. In a statement today, king says he intends to vote against President Trumps impeachment and support him for reelection in 2020. Responding to three weeks of mass protests, chiles government plans to overhaul the constitution. The interior minister says a proposal for the mechanism of reviving the constitution will be delivered in the next few days and the document will be drawn up within water two years one or two years. A new constitution has been among the demands of protesters. Australia is facing deadly brushfires. Two people have died. Huge chunks of the eastern seaboard and parts of greater cindy basic catastrophic threat. There is a two year drought in those areas. Conditions are expected to be hot and windy this week. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. Bloomberg. David . David coming up, upon tom protests turn even more violent. That is hong kong protests turn even more violent. That is coming up next. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. I am david westin. Five months of protests in hong kong turned even more violent with teargas fire downtown and one man shot at close range by police and another man set on fire. Markets are reflecting the damage to the economy. We welcome strap for Vice President for Global Analysis coming to us from austin, texas. Thank you for coming back. Give us a sense of what is going on in hong kong. To what extent is this affecting china more broadly . When we look at the situation, you see the protests turning more violent and the mass protests are declining in number and you could at the surface say this is similar to the 2014 trajectory where we start to see the protests dwindled and then the more violent elements come to the fore and that could work in favor of the hong kong authorities in cracking down more effectively. That is not necessarily the case here. Remember these grievances run very deep. You still have broad Popular Support for the protests. Every reaction elicits another reaction. More repressive Police Tactics are going to inflame the protests more. Police morality is low. Hong kong authorities cannot concede on key protest demands like an independent inquiry. This continues to burn. As we see globalist tension remain fixated on the hong kong protests, economically this is having a big hit in hong kong itself. There is still potential for this to bleed into the broader trade talks, especially as you see congress. That is what i was going to ask. Does it bleed into it . Wants to keep this very compartmentalized, but when we look at the white house it is more selective. When we look for leverage it will look at those peripheral issues. We saw this recently when we saw human rights sanctions levied against key chinese tech firms over human rights abuses. Hong kong fits into that category. Even if President Trump wants to go for a trade deal and keep hong kong out of it, we still see a lot of bipartisan support in congress that is going to keep bringing this issue to the forefront. As much as leaders may want to is muchsiloed, that easier said than done. David we are talking to reva goujon of stratfor. Spain had elections yesterday. It seems less certain after the election than before. What is going on . Reva not only did the election failed to break the gridlock, it resulted in an even more fragmented parliament. When you have a very difficult situation for a socialist party right they cannot look to their allies on the left, which did , and therm well centrist party collapsed in this election. While neither the left nor the right have the numbers to reach that 176 parliamentary majority, that means they would have to look to smaller regional parties for support. That is when they get into the politically toxic issue of dealing with the catalan party, who will be advocating for independence referendum. Nobody wants to touch that in mainstream spanish politics. This meeting we will have more gridlock, probably another election next year, and while and theish government spanish economy has been resilient to the political crisis, now we will start to see more of that effect because you are seeing that slow down in spain taking effect amid a much broader european slow down. Reforms will be much harder to get through in this political paralysis. It feeds into the wider european slow down. David which leads to the question of what is driving the uncertainty. Said, the economy is doing prewell considering where they are. It does not seem to be economics. What is driving it . When you saweva the Election Results with a big win for a far like box party, party the far right vox , which is a reaction to the situation with catalonia. You are seeing the ageold conflict between the center and the secession region of spain playing out in politics. There are still underlying economic tension and social tension. It is the regional politics that is now playing in favor of the more extreme parties. David we are talking with reva goujon of stratfor. Lets talk about the united kingdom. We had Nigel Farage Seo will not go after the conservative party. Does that put Boris Johnson in a stronger position . Reva you see Boris Johnson nigel farage doing their dance. There is the preelectoral dance in the postelectoral dance. Right now it is notable nigel farage has softened his redline dealing with Boris Johnson and saying it is not about throwing out the withdraw agreements and going for a new deal brexit. It is about keeping the transition period short. There is plenty of room for negotiation. It is hard to predict what is going to happen in the election in this system. You can see the potential for a coalition emerging between Boris Johnsons conservative party and Nigel Farage Brexit party. They do have the clearest direction for brexit. That is probably the most stable outcome if we see that emerge from this election. David one last short one. Lets assume the tories win the election. Does that make it clear parliament will go along with Boris Johnsons plan on brexit . Reva it all depends on the actual numbers and how much of a lead they have. If you do see enough support going to the brexit party and the conservatives Boris Johnson has gotten the furthest with the withdraw agreement that gets around some of the stiff your points on the Northern Ireland issue. Certainly he has the best chance of delivering a brexit outcome. David many thanks to reva Vice President r for Global Analysis. Politics,f british the conversation has been dominated by conservative attacks on labor spending players. Today, guy johnson caught up with the chancellor for the exchequer after gdp data has shown growth in the Third Quarter. We shouldve asked him whether his plans we asked him if his Spending Plans would boost gdp even more. We set out our fiscal rules that sit in terms of daytoday spending it should always be in balance. More tosensibly borrow invest in economic infrastructure, but that is a world of difference between our plans of sensible investment and economic infrastructure versus labors plans, which is endless amounts. Guy how much will you borrow . We will keep borrowing under control. If we win the election, we will have within weeks our first budget and in that budget you would expect to see the details and the independent forecast of the impact of our spending and tax decisions. That is important. To get there, we have to win this election and show we are the fiscally responsible party we always have been. Over the last nine years we have been in office, we have seen this economy recover. We have seen almost 20 of growth in the economy in that. In that period. We have done far better than our competitors. To keep that growth going, we need to have a fiscally responsible government and only the conservatives can offer that. Guy will you ask the governor of the bank of england to stay on given the uncertainty that exists at the moment . There is no need for an extension of a term with the governor of the bank of england. If we were to win the election, we can make a decision quickly as to who the next governor will be. If we win, we will act quickly. David that was the u. K. Chancellor of the exchequer speaking with bloombergs guy johnson. It could be the biggest ever leveraged buyout. It is our company in the crosshairs and it is next. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Time for our stock of the hour. Walgreens is the best performer in the s p 500. The stock is popping higher nearly 6 on reports that kkr has approached the company about a deal to take it private. Kailey leinz is here to explain. They got the news last week that a possible leveraged buyout would happen. The street did not buy it because it would be such a large deal. We are talking about a company 17 billion in debt, the largest leveraged buyout in history. We are talking 40 billion over and above the largest today, which was 40 billion. There is a question of can this get done. Now that kkr is in the mix, reportedly preparing a formal proposal to give to walgreen shareholders, maybe it is being taken more seriously in the market. It is still likely kkr will partner with someone in order to see through a buyout of this size. It would be historic and that is exciting and exciting for the bankers. Why does it make it a better company. Walgreens has not been doing as well . Kailey it has not. It is one of the worst performers in the doubt and theyve been taking different strategy than cvs, which has it at the acquisition, which had been vertically integrating, but walgreens is doubling down on brickandmortar retail. Partnering with kroger, but you still see it struggling in the front of the store, and in the back of the store in the pharmacy business, you are seeing a lot of startups in that space delivering to peoples homes. Theres been a public outcry over drug pricing on capitol hill and that weighs on the revenue as well because drug prices are not picking up the same rate they were a number of years ago. That is weighing on the bottom line. It is an interesting question. What the return could be for kkr or another private equity firm in this deal. What is the strategy. David one of the questions i have to ask is how much is this because theyve a better mousetrap they are developing or because money is burning a hole in everybodys pocket. There is a demand for debt. To what extent is it it makes so much sense you can structure deal because the Interest Rate is low. Sure you can put a lot of data the balance sheet, but the question is what can you do with that money. Kailey right now in this environment there may be more incentive to do it now. The fact that we are talking about walgreens underperforming, it is down to 23 in the past year so the valuation is more depressed which makes it potentially more attractive while the stock is weaker. Timing may be a factor. We do not know. This is just according to people familiar with the matter. It is not necessarily a deal that is going to happen, but we know kkr is formally approaching them. David it has everybody excited. Many thanks to kailey leinz. Up next, public hearings on impeachment begin on wednesday with polls indicating a Sharp Division across america falling right along party lines with the independence split in between. We talk up to our Political Panel about what to expect, live from new york. Power onalance of Bloomberg Television and radio. David from new york, this is balance of power on Bloomberg Television and radio. Im david westin. Bloomberg first word news, we go to Mark Crumpton. Mark House Democrats signaled they may let what let some witnesses from republicans testify at the hearing but will be limited those that have knowledge of President Trumps actions. There are at least two people on the republican list who will not be invited, hunter biden, and the whistleblower. It in one of the most violent days in hong kong since protest began in june. Fighting between police and demonstrators left downtown paralyzed. Police shot and wounded one protester. Meantime, man sent to have the green with death disagreed with protesters was set on fire. Warned protesters violently not help them achieve their goals. The british Prime MinisterBoris Johnson got an election boost from the economy. The u. K. Dodged a recession in the Third Quarter by avoiding another contraction. Economy grew 0. 3 between july and september but figures were weaker than expected and showed the british economy had little momentum entering the fourth quarter. Spacex launched its second batch of starling satellites today, taking another step toward its founders vision of creating a network for spacebased Broadband Internet service around the world. The service musk, will be an important source of funding for the company. Spacex plans to continue launching satellites in batches. It aims to provide service to parts of the northern u. S. And canada next year. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. The impeachment is every bit as much about politics as it is about law, and thus far it looks like america is just about as divided on impeachment as it is on so many other issues. We welcome now chris welcome wilson, director of research for ted cruzs president ial campaign in 2016. Littman. Ington, drew served as al frankens chief of staff. Let me start with chris. You are a pollster. Indicated, have seen basically all the democrats are for impeachment, the republicans are against it, and independents are split down the middle. Almost take an overlay of job approval with trump and that is impeachment. Sort of anas become anthem for that. There is not much that tells us. Until there is something significant that comes out and the selective winks are not doing it. In a watergate style release, something internal, you will see that become the case. Expecting democrats this to be watergate, a revelation that we knew nothing about . A staffer, i sat through the whitewater hearings. They were a great example of the wrong way to do this. They were disconnected and detached. The committee chairman, every morning would announce that that day you would see some incredible revelation that would blow the lid off of the cover up. He built up expectations and nothing really happened. Democrats have to be extremely disciplined and focused on advancing the narratives of the public understands what happens, and not individually getting on television, which is what members usually think about when they walk into a hearing room. David chris, is there something beyond what we have known so far . And watergate, for example, there were all sorts of things about what the president knew, when he knew it. Dont we know the whole story here . We saw it in the modified transcript. Thingsone of the first in politics is you dont fire all of your shots first. Democrats took everything they had, they released it, and then tried to selectively release transcripts, experts excerpts here and there to back up what they had released. It is like whitewater, i agree. There are no surprises here. Mine is a big surprise, you will not see much change here. Anyone who watches what is going on in washington right now can predict the house will vote impeach,ty lines to the senate will Vote Along Party Lines not to convict, and then we will move on to the elections in 2020. The only People Holding the bag are the american people. Anotherally going to be bit of visualization that exists with what goes on in washington every day. Explain to me what the republican strategy is in going after the whistleblower. We heard from Lindsey Graham over the weekend saying this is not going to work unless we hear from the whistleblower. This is what senator graham said. It is impossible to bring this case forward, in my view, fairly, without us knowing who the whistleblower is, and having a chance to cross examine them. If they dont call the whistleblower in the house, this thing is dead on arrival in the senate. The other side is doing this, but suppose you found out the whistleblower was totally biased. What difference does it make about what the president did, or for that matter, why he did it . Drew none. Republicans are firing up everything they can. Is a smartham lawyer, but this is a sideshow. Everything the whistleblower has claimed has been corroborated by people who we know have direct knowledge. They have been interviewed, some publicly,speaking transcripts, and all will testify again. The whistleblower is not really relevant. David if we can muddy the water son, there is no clean kill, as it were, chris . Chris the whitewater case is a good example. Democrats tried to make the case about ken starr and him being an unfair arbitrator. Been payingas attention knows who this person is now, that he has a very partisan democrat background. The thinking on republicans is that they make it about him and who he is, and that will make the case less compelling. Democrats are wisely trying to keep it away from that and make it about the people that testified after. It is a bit of a sideshow. Ken starr was the month had the biggest negative pressure around him. That is the same thing that the republicans are trying to do with the whistleblower. Other big news, longterm republican congressman peter king announcing that he will not reup. Quite a few republican congressman not going up for reelection. Does that reflect that they dont have much of a chance to take the house, so they dont want to be in the minority anymore . Chris i think a little bit of that, candidly. King has been in the house a long time and said that he was sick of the commute. I cannot imagine doing that every week or as long as he has without getting frustrated myself. But being in the minority is no fun. Most republicans look at 2020 as not a strongy but one. Most look at 22 as a chance to take the house back. That being the case, it is a lot different to serve in the minority than the majority, and probably making the trip became longer whenever youre in the majority. Drew, wrap this up from the democrat side, on the senate and house. How confident are you the democrats could take the senate or hold the house . Drew hold the house, very confident. The gerrymandering decision in North Carolina helps a bit her. There. The senate, i dont know, but i thinkthe gerrymandering decision North Carolina helps a bit the e greater for people in the senate, like susan collins, even though they are not in the front lines of this hearing. Republicans in blue states who are up in 2020 have to be sweating this. David many thanks to our Political Panel, drew littman, chris wilson. 250,000 veterans leave the military every year and many have difficulty transitioning into the private sector are. On this veterans day, we talked to a vet who has helped them make that transition. That is next. This is balance of power on Bloomberg Television and radio. Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. More than 4 million veterans have left the military since 9 11. 250,000 leave every single year. They have acquired skills and experience that can be extremely sector,n the private but figuring out how to make the translation is not always easy, either for the veterans or the employers. Sector, but figuringa new startup compag to help them with a translation, founded by a navy veteran. Mike slagh is the founder of shift, and comes to us from san francisco. Good to have you with us. If i could just start by saying happy veterans day to everyone that came before me and everyone that is still serving. As a veteran myself, its always been a very special holiday. God bless all of you serving on the front lines. David it is a day to honor those still serving. You have made the transition from the military to civilian life. Give us a sense of what some of the challenges are or the vets . It this way,bout when separating from the military, one of the 250,000 people that make this transition every year, you want to know, first, what is possible, how do your skills translate . How do some of your unique experiences translate to something that would be one of 0 people that make this transition ofry year, you want to valley for a potential employer . If you want to live in new york city or san francisco, the matter who you are, it is hard to get a job when youre on base. But beyond that, when we are talking to employers to hire more veterans, we all which challenge them to look around the table. If everyone around the table has experience, your answers to the problems you are trying to solve they increasingly look the same. We are not asking employers that we work with to lower the bar necessarily but to have conversations and interview vets. We think thats our the most Diverse Workforce on the planet, have worked with people from every city and state in america and have figured out how to communicate effectively and work in difficult environments and accomplish the goal. David give us a sense of what the military does for veterans like you in making the transition. Unemployment going back to 2008 was fairly high, has come down as on a planet come down overall in society. Mike when we look at some of , there is a small but growing movement of people who want to do more around military transition. There are all of these very nascent but interesting initiatives that are starting to invest more, up to a year out prior to summon separating from military service. The initiative we are launching today is called shift pathways, reduced Tech Education for military veterans. We have helped discover veterans, which pathway fits for them, and then our partner, we have launched a new fun that finances 100 of the upfront tuition at lambda school, a worldclass Technology Skills academy. At the end of the program, veterans dont pay a single dime until they are employed in a highpaying job in industry. Their repayment into the fund is the very thing that powers the next veteran in their footsteps to access this critical of scaling and rescaling curriculum. It picks up where the g. I. Bill left off. Like a greatnds program, sounds like the g. I. Bill after world war ii. Why is in the government doing what you are doing now . Mike lets be clear, the g. I. Bill was a transformative initiative. Veterans, if the g. I. Bill, and accessing traditional college, makes sense to you, then you should go for it. It is an entitlement, something youve earned. Many times, it doesnt work out that way because the veteran did not get the outcome they wanted from attending a traditional university, or they have given the entitlement to their spouse or family. When we think about the initiative that we are doing now , we think it could be a glimpse into what the future of education could look like for all of us. Attend worldclass, concentrated education that only focuses on skills. Do it anywhere you want in the world. It is completely interestfree. You only pay back if you get a highpaying job in industry. Best of all, you are paying money back into a fund that powers the next person. Funds are fenced for that very purpose. David i can tell what you are excited to announce it. Give us a sense of your overall company. You talk about 250,000 vets coming back every year. What is the market, how big can you get . Mike there are 250,000 people that leave Service Every year, but i look to some of these worldclass companies that serve the military community so well, like usaa, a category defining brand or Financial Services in the military. A Career Change company for veterans is something that we not only want to exist, but society wants it to exist as well. But a society that allows people to upscale, rescale, improve their careers over the course of many years is something that Society Needs as well. David many thanks to mike slagh, the founder of shift, a navy veteran joining us on this day from san francisco. Some breaking news. To higherin talks john legere from tmobile as their new ceo. Shares of both companies are slumping on the news. Legere is said to be trying the merger with tmobile and sprint approved. Shares of both companies are slumping on the news. Coming up, linda lacewell, superintendent of the new York Department of Financial Services explains her investigation into Goldman Sachs over the apple card. This is balance of power on Bloomberg Television and radio. David recapping that breaking news, wework is said to be in talks to hire tmobile Ceo John Legere as its new ceo. Legere has been trying to get the merger of tmobile and sprint through the justice department. Now dow jones is reporting that he is in talks with wework as they try to redo wework. Both stocks, tmobile and sprint, are down on the news. We will continue to bring you news on that. Potentially big news in the telecommunications industry. Now we turn to big news over the weekend, algorithms, and whether they can discriminate. Its a question congress has been asking, and it came to the fore over the weekend with claims that their wives had received lower credit limits on their apple card. The new york state regulator probably announced an investigation. We welcome her back to bloomberg, linda a. Lacewell. Thank you for joining us. What do we know about this at this point . What do you know . Linda we know that there was a viral tweet over the weekend, and many responded, making the theyclaim, which is that had applied, or their wives applied to the apple card backed by Goldman Sachs, and the woman was treated differently by the even denied or received a lower credit limit, even though her credit score was higher. David the viral tweet came from a danish tech on jupiter often were entrepreneur. He got a letter from goldman explaining why. Do you not know why goldman says this happened . Linda we will find out. They reached out to us, and we are in dialogue with them, so they can expect to us how the algorithm works. One of the main problems here is an algorithm is a black box. A black box for consumers. It cannot also be a black box for the user, goldman or apple. They need to understand how it works, how its being applied, and make sure it is not discriminatory and its impact, even if that was not the intent. I have heard it may be a situation where you have a husband and wife, or father and son, where they are both on the same card, but the person responsible for the credit is the father or husband, so their Credit Rating is different from the other person on the related card. Does that happen . Linda i have heard it may be a it does happen but it is not clear what happened here. Goldman sent out a notice to its consumers and users saying that they look at each person separately. So it remains to be seen how the card works in operation here. That is what we would get to the bottom of. David goldman had a statement, that we look at each individual. If they look at each individual, is it possible that two people that are related, even husband and wife, could have different credit worthiness . It is possible, it itlinda depends on the factors being looked to. That is what we need to since this algorithm is being used in place of human beings o. We need to see how it is working. David since this algorithm is being used in place how do yt investigating an algorithm . Not thef course, it is algorithm we are investigating, although that is a good question. Ae user of the algorithm has responsibility to test the product to make sure it is operating fairly. There ought to be some sort of disclosure to the consumer about why they cans decision is being made to deny or give a lower Credit Rating. Importantly, Customer Service representatives need to understand how this is working. According to calls this weekend, the representatives had no way to explain, just said it was the algorithm. David from your point of view, if people know the rules, they can adjust their behavior. If they dont know the rules, it is hard to know what we can do to improve the situation. Linda Credit Rating agencies disclose to various applicants why they were denied, and people do learn accordingly and can become more financially responsible. The point is we dont know why the decision was made, and that is what we want to learn. David we are talking with linda lacewell, who is supervising Financial Institutions in new york. One thing that was reported was had the husband and wife different credit scores, and may be the wife had a better credit score. I am told that credit score does not necessarily translate into credit worthiness. Linda it depends on doing the product, how they decide to do it. Again, the importance is transparency to consumers, fairness to consumers, because we are all consumers. Deserves to understand why these decisions are being made, to offer or not offer Financial Products and services to them. David give us a sense of the new york statute that you are enforcing. What is required for someone to the extended credit . Linda certainly, discrimination, including discriminatory impact is illegal under new york state law. That extends to credit. The Financial Services law and banking law requires consumers are treated fairly without discrimination, and be treated equally in terms of consumer protection. David this investigation just started, so we dont know what youll find. If you found violations, what are the sort of penalties that are possible . Range of have a options available, i dont want to prejudge anything. There is the ability to impose fines, get restitution, if consumers were affected. We do license golden bank, and that is within our jurisdiction. We will have more we will haveh linda a. Lacewell coming up in our second hour on bloomberg radio. Recapping that breaking news, wework is said to be in talks to tmobile Ceo John Legere as its ceo. Mr. Legere has been working hard to get the tmobilesprint merger through. Tmobile Ceo John Legere as its ceo. The stock on both companies are down on this news. We will continue to cover that as it develops. We will bring you more headlines in this story involving telecommunications. This is balance of power on Bloomberg Television and radio. Mark im Mark Crumpton. Bolivia, the president resigned after the army pulled support and triggered weeks of violent clashes that led to intervention. He was in office 14 years. The European UnionsForeign Policy chief was asked if the e. U. Is willing to send an. Bservation mission if conditions are right we all do our best to send mission. We will discuss this and if the conditions are right, we will be ready to work on it. Coup,the victim of a because himself. Syrianstests, government plans to overhaul the constitution during a dictatorship. The interior minister said the proposal of revising the constitution will be delivered in the next few days and the document will be drawn