Signature of the president of the united states. The ukrainian jet that fell from the sky the government has obtained evidence that indicates a rapid dissent of the boeing 737 was not caused by a mechanical issue or pilot error. The Ukraine International airlines jets plunged from the sky minutes after takeoff, killing all 167 people aboard. Witnesses say the jetline was on fire as it plunged. Britain passed a major milestone on the road to brexit. Prime minister johnsons authored legislation putting in and to gridlock. They voted in favor of the Withdrawal Agreement bill which passes to the upper house of loris. Prime minister johnson once it passed before the end of the month, so the u. K. Can leave on the scheduled day of january 31. Global news, 24 hours a day on air and quictake by bloomberg powered by more than 2,700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Live from bloomberg World Headquarters in new york, i am vonnie quinn. Live in toronto, im amanda lange, welcome to bloomberg markets. Vonnie here are the top stories we are following around the world. New developments surrounding the downing of the ukrainian jet near tehran. U. S. Intelligence officials are increasingly confident that the crash was not a result of a mechanical error or pilot error. Canadian Prime MinisterJustin Trudeau a set to address the nation in just under 30 minutes. Navigating uncertainty for canadas investors. We sat down with Blake Hutchinson, the incoming ceo of ontario communities. Suing in said adele citadelsit suing. Risk onwe have this sentiments once again. We have the broader s p 500, every group moving higher, despite energy and gold having shown on initial weakness, we are seeing neither of those groups. Finances leading the way higher and the techs are also strong again. Take a look at boeing as the news develops. This is very sensitive geopolitical news for boeing, the understanding that it may not to be Company Specific is important. At one point, the stock was up almost at 2 on the day. Attention may turn to jobs data that we get tomorrow, jobless claims numbers turns to strengths, and all eyes back on trade if and when the geopolitical risks stops being on the front burner. 190,e we had the 10 year back to 185 now. Plenty of basis point moves in the last couple of days that have come in the geopolitical sphere. Seeingail index were stocks plummeted. Kohls, down 9 . Holiday sales were weak for the notrtment stores, but for everybody. The Semiconductor Index losing some gain, but we had plenty from the likes of and in other and other a d chipmakers. Ford and General Motors pushing tesla up to that level that now exceeds the combined market cap of two of the detroit big three. Amanda shares of boeing on the move today. On reportson circulating of the cause of the fatal plane crash in iran. Technical causes brought the boeing 737 down. President donald trump said today, he has doubts and u. S. Officials seconded that. Pres. Trump someone could have made a mistake on the others. And not ourg, system it has nothing to do with us. It was flying in a rough neighborhood. Someone could have made a mistake. Some people say it was mechanical, personally, i dont think that is a question, personally. We will see what happens. 1 3 of the 176an people on board were canadian, and one of the worst aviation disasters to affect canada. Ouring us from washington, bloomberg reporter, and daniel, we have already heard from the canadian government that they believe u. S. Government official reports that the u. S. Officials believe it was a missile. What to expect a Prime Minister to say . Presumably he will build on the comments where he said yesterday that there is a lot of questions about this that canada wants answers, and i would expect more condolences for many of the victims. This is a massive tragedy in canada. We will have to wait to see. Trump saidsident that ideally the black boxes will be handed over to boeing or even another company. Would canada potentially get access if it is looking for access . Danielle it is complicated, vonnie. Undecided is still where that black box will end up, and right now, iran would have custody of the black box and they say that damage has been done to it and so far, have refused to turn it over. Under international treaties, there are rules for all of the countries involved that have a role in the investigation, but it is undecided where the box will end up eventually. Complicated in the case of canada because we ended diplomatic relations with iran in 2012, so a lot of our communications has been done by italy. Typically in these sorts of investigations, what happens in the country where the crash occurred, it leads the itestigation and then where was manufactured, those countries also would expect to have a role. We know ukraine will be involved. Amanda one of the complicated elements here is if this is seen how would you classify an active war act of terror, civilians are now caught if this is an accidental missile strike. How does that change the u. S. . From the u. S. Perspective, the president tried to deescalate tensions buterday with in a speech, we still do not know what happened here, but if it turns out to be some sort of mistaken iran, or retaliation by that would certainly put pressure on tehran in the international community. Beforehand, there were questions from European Countries to u. S. Allies about what exactly President Trump was thinking to take outded soleimani if it turns out that tehran took down his passenger jet whether intentional or not, all of the governments are preventing people on board and others will have very serious questions for the iranian government. Does the story mean in canada. Give us a little more detail, obviously, huge number of families have been impacted. Have they gathered together as a group and is it still too early for Something Like that . Danielle we are seeing it and sort of pockets across the country. Profoundly impactful story here, pretty much of the lead on every major newspaper, all over the news. Iranianan enormous diaspora, by a lot of iranians came to canada after 1979 when the shah was disposed. Therell be communities across canada that are feeling this loss. We have a use diaspora from ukraine and communities from different cultures, canadians with roots in very different cultures that are going to be feeling this. It is deeply sad. To most of the canadian victims appear to have ties to iran, which makes it doubly to doubly tragic, if this plane was brought down by iran. Amanda we do have reports, unconfirmed as of yet, but that there may be a strike on ballot airbase in baghdad, unconfirmed by bloomberg. Live obviously a very story, and how much can the u. S. Now distance itself between events that might take place between iraq and iran . Jordan judging by the president s comment yesterday, he seems to have drawn his own redline. Does not causen casualties, he will not escalate in a violent way. If it turns out there are additional casualties, if iran takes actions against u. S. Installations around the world, that is something the president and his advisers like secretary of state to mike pompeo would trigger some retaliation. Vonnie our thanks to everybody. Back to the markets, the major u. S. Averages rising, as risk seems to be returning. Joining us for analysis is bill from washington. Reversal, aalthy healthy resumption of the rally we saw on the first trading day of the year . Bill yeah. I still think there is more upside here. It bigger scheme of things, would not surprise me to see the s p rally another 100 or 200 points. The point we are trying to make to our clients is when you take a step back and you look at the Bigger Picture trend, the most important trend in the market is the rally off of the march 2009 lows in the u. S. Equity market. Opinion isin our pretty much near the end. 90 to 95 of the way there. The in the short term here, markets have kind of regained their footing, and it would not surprise me to see another major push to the upside. Isare telling our clients think about 2020 differently from 2019 or 2018. 2020 should be a transition year where you begin to pare back your equity exposure, we take some chips off the table. 3500you get up to that 34, area and the s p, the risk reward starts to favor you to be defensive. Amanda the obvious problem is where do you, especially for investors that have become a become accustomed to returns like we have seen, where will you tell people to go for any kind of return, even if it is a Downside Protection move . Bill one place you can go is the bond market. Themes here, again, 20 20 will be a transition year. The equity markets begin the top, i believe the bond market get another have another significant rally here, and it would not surprise me over the next 12 to 18 months to send to 10year notes back around 140, 130, so i do not think the rally in the bond market is over, and then in the equity markets, i would definitely want to be more defensive, utilities, but the point is that we have had an amazing run here. I still think there is probably one more good push to the upside, but you want to start thinking about going into the harvest mode and taking at least some of that money off of the table. Amanda great to have your thoughts on this, bill strazzulo, appreciated. Asll ahead, play cuts in sin he prepares to take the helm of one of canadas largest pension funds. His strategy for the funds after this. This is bloomberg. This is bloomberg markets, i am vonnie quinn in new york. In toronto. Da lang despite record highs in the stock markets, there is plenty of volatility and uncertainty so how do foreign Institutional Investors view the u. S. These days . , theed Blake Hutchinson incoming ceo for canadian pension plans. We have come off of a great year as so many have. We do not brag about a, because you cannot get used to that. It happened to be an incredible year for equity. Particularly, u. S. Equities. You do see data that may suggest confidence moving in the wrong direction, but the story for us from a return standpoint is incredibly great. For us to sit and speculate on any sort of daytoday move in the headlines, and politics is are with these we very best companies, very best real estate assets, and by definition, we are thinking longterm,. You factor in geopolitics but you certainly do not react to it and we have not changed our strategy one iota because of whatever noises the headline suggests. Amanda if we stripped the stock market, almost every other you would not expect america to be going gangbusters. You have manufacturing teetering on the brink of contraction, you have consumer to be sure that it will stay at the party, you have trade tensions, very long cycle, massive government debt. Are the fundamentals divorcing themselves from asset value or continuing to in a way that should concern you . The beauty of investing as you are not investing in america. When you take any of our asset, first of all, when you decrease taxes, corporately and promoteally, when you business friendly environment, there is a lot of pockets and all ofhat would point to those that you suggested in the exact opposite direction. The beautiful thing about investing is you do not have to invest in the proxy of the normal. You invest in the markets you understand, the assets you understand, the submarkets you know, and you can be very precise with unlocking 0 to doity that has with macro transit. And you can find ways to make money by betting against them anyway. That is an honest answer. Focus on ther, submarkets that you understand and the areas that you feel have real opportunity, and you Pay Attention to them, but they do not necessarily deconstruct youre very wise you do feel comfortable and confident about staying in those pockets . Yeah, we do. We are not to the noise out there. When you compete with a rough map of 1. 5 trillion dollars in Additional Capital for five years, and we are longer in the cycle than normal, you would be naive, especially in front of cameras, to go and suggest that you are cocky or overly confident to what you can unlock. I will say we will be prudent and we are not going to take our risk lends off, and yes, we will continue to find exciting opportunities to pay our pension plan. Blake hutchinson is the incoming ceo. Theie breaking news from Canadian Dollar weakening by and the3 of 1 , damage from the global trade conflict is likely to be permanent, and he is watching a trade dispute fell over to other sectors of the economy, and he is watching as well for a new sign of froth. This is bloomberg. Amanda this is bloomberg markets. Im amanda langa in toronto. Vonnie i am vonnie quinn in new york. British hedge fund accusing it of accessing information on a crucial automated trading model. When gsa wasy all attempting to hire one of the security senior traders. Here to break it all down is bloombergs sonali basak. Is this the first of what may be all of these programs that may be numerous . Sonali there have been suits like this before but it could become more common as things go along, people want to closely hold their own algorithms. Talent would be going all over the place at wall street, and the traders here had been at securities for about 11 years for became an issue. You are right, it is not a oneoff issue, necessarily. But it is a big targeted hits. Amanda how much money is at stake here . Cost 100 million for them to even develop this model, plus the abc strategy that is being discussed here generate another 50 million annually, apparently, in u. S. And european equities. Securities isdel one of the initial traders and they were making markets an option market, gotten big and equities, and a member how big Citadel Securities is. In terms of retail flows, that firm handles 40 of retail flows. Vonnie there is very few, maybe isy one shop where there unknowing of all models, and when they leave, they take their models with them, but that is not the case here. Sonali gsas defense, vigorously defending themselves, but citadel is seeking damages and an injunction to get them to delete all of the information they may have taken. Amanda we know that these algorithms are important, and as you point out, there is value in them an investment in them. What could be done to prevent this kind of thing in terms of the intellectual property, and how much of it is the traders know . Seeing something we are a lot of banks doing is monitoring close communications. Citadel is alleging that when gsa tried to recruit their trader, they were trying to keep information off of email but whatsapp as well. The trader that developed the technology, couldnt he just replicate it in some way . Sonali once you work for the firm, the information is there is. Citadel securities, a lot of it was born out of a hedge fund. Citadels much algorithm and what they consider the secret sauce of the firm. Amanda sonali basak, great to have you. Canadian Prime Minister just introduce about the plane crash in iran and the latest on that. From toronto and new york, this is bloomberg. Mark im mark crumpton. President trump says he doesnt plan to block his former Top National Security aide john bolton from testifying at a Senate Impeachment trial, but the president says he needs to protect his executive privilege for himself and future president s. Mr. Trump says he would consult with the lawyers about whether boltons would present a problem and that when we start allowing National Security advisors to go up and say it ever they want to say, we cant do that. Doctors, lawyers and others join the fourth nationwide day of protests and strikes today to denounce president emmanuel macrons plans to overhaul the pension system. Treet protests were staged talks between the government and resumed,ons were but no compromise was reached. Libya calls for a ceasefire in the countries civil war, but its rivals havent endorsed the idea. Libyas