Girl dollar times 7 and the British have a dollar 20 dollar 21 that's a Bloomberg Business flash we continue with Bloomberg Markets Lisa and Paul thank you so much a great tear and it's time to take a look at small and mid-cap shares stable some liberal Senator turning us here in our Interactive Brokers studio is looking at a bit of a softer tone today yeah you could say that I mean smaller companies down more than larger ones the Russell 2000 index lower by 6 tenths of a percent the s. And p. $500.00 only lower by a quarter of a percent Whether us the steepest drops once a cubic whose ticker is c.-u. Be the defense and mass transit company has fallen about 90 and a half percent gauge of fiscal 4th quarter earnings trailed analysts average Essman Bloomberg survey quite Goldman Maddux ticker g l y c has slipped 17 and a half percent the drug developer said now expects final stage study results for Leukaemia treatment in 2021 rather than the end of 2020 as previously scheduled and Lazy-Boy ticker l z b is down 12 percent fiscal 2nd quarter earnings at the furniture maker and retailer came up short of the lowest analyst testament to Spencer in the Russell sharp again that's 22nd century group ticker x.x. I am I the tobacco producer has rallied almost 43 percent to a 2nd century tumbled yesterday by 43 percent after u.s. Regulators put off a plan to cut nicotine in cigarettes stocks editor Dave Wilson let's switch gears here and get take a look at the business of pets run Coghlan is the c.e.o. Of Pepco Petco was taken privately back in 2015 by c.b.c. Capital Partners and some others Ron thanks so much for joining us love to get an update on Petco and kind of where the market is right now for you guys. Absolutely thanks for having me a year ago you're going to do and. Talking about taking $100000000.00 on a business by taking out products are for. Showing gradients and today I'm proud to say that not only have 1500000 pounds of food with artificial ingredients but our business has gone from declining 3 or 4 percent to 3 to 4 percent so we've had this contention that what's good for the cat is good for Petco and it's proven true Ron are we reaching peak pet where people are buying health food for their Dogg. One of the wonderful things about the pet market is it's a growth market so I would say it's not taking. More and more there's an adage teche used to be in the outdoors then they were in the backyard and they're in the house now they're dead so more and more folks are wanting to take care of their pets the way they take care of themselves not include avoiding artificial ingredients so interesting here so give us a sense of kind of the growth Panamic of kind of the the global pet food industry or the u.s. Pet food industry. So it's a 6 percent growth business. Was really one percent growth in the number of pets but in terms of how folks are taking care of their pets the type of food that they're serving pets you know they're more and more they want to move away from you know the older Rolaids of the world and towards the better for you food in a perfect example is my my dog yummies a yellow lab he goes he's going on 11 years old and before I joined Petco I was feeding him a middle of the road food and shame on me and I switched him to a product of just food for dogs which is a human great food fresh fish and sweet potatoes he immediately lost 15 pounds and he's back to acting like a puppy I feel like this is a p.s.a. This is everything in my of your head yeah if I want to talk about you know the growth market there has been a shift people having fewer kids having more dogs and I'm wondering you know how far along in the evolution are way when it's something like people adopted more do pets and then had kids last year or something. I've heard that statistic I don't know or the idea that kids at this point my minor center leave the house but I have heard that you know your 1st comment about p.s.a. One of the cities they were building the artificial deck was a great game the so. Really unlocked our partner's passion for pets and is really powerful for us but people are there waiting longer to have kids and. There are replacing some of. That loving being in the house and I think it's good for her feet going for America I want to say this given the fact that dogs are more likely to be consistently loving that here Sojourner accept less getting you know I do with getting Talk Back. So I want you so much out of the market give us a sense of the competitive environment is the pet food business one of those retail or consumer businesses that's been disrupted by a technology much like Amazon has done so give us a sense of the competitive environment. Absolutely I'm not going to claim that that hasn't impacted the pet industry you have the Amazon factor you have the truly factor and they've seen success market and quite frankly Petco had to go back and retool and that was the bad news the good news is we did and it's working so in the last year we've launched Byron line pickup in stores many hugely successful we've reached over a 1000000 downloads of our app we have repeat the livery and so are my businesses growing 20 plus right now so what what is. The fret now turning to a tell when. One thing that we've seen recently is a bit of volatility in the speculative grade credit market and I'm just wondering how much money you need to raise at this point given the fact that you have a b. Tier credit rating and things are getting a little bit more challenging for some companies you know we we don't need we don't need to raise money and we have access to capital as we need it so from that standpoint we're sorry we have to clear a private equity primary partners in c.b.c. Partners and see if you take any pension fund and or back to growth from a top line we're looking forward to sharing the results on the bottom on what's our letters a few weeks so we're good on that front. We feel good about our execution and our friendship worst biggest opportunity for growth for Pepco. I'd say 2 things one is Israel continuing to drive our cultural business and the 2nd is we're shifting to services and those are services those digital players don't have so we've taken our growing business from a declining 78 percent to a declining near double digit business our training businesses growth and we are driving probably the fastest that were filled out in history and what's significant about that is 2 for the benefit of the pets we're talking about affordable care a lot of pets don't get the vet care they use because affordability and the 2nd thing is whatever could have better get that come but we are also a forward to sever coin lift in our center source sales so it's good for the pen it's good for business run Coghlan thank you so much for being with us Ron Coghlan is Pepco chief executive officer talking about a push toward more natural ingredients for people's pets I got to say it is just shocking to see the trend line of births the birth rate reverses the pet adoption rate and it is absolutely you know diametrically opposed in terms of those trend lines and it makes sense it's a lot easier to get a dog to love you sometimes than a 7 year old child who is tired and hungry and very stubborn and just say you know radically he said I don't have it exactly I found interesting in the you know just kind of how the you know the organic movement in in human food is also finding its way in pet food as well I was unaware I mean come on obvious safe you care about yourself and then you don't care about your pet I mean there's an entire industry to get you for that to tell you why you're destroying their health and your own personal mental health with respect to animal rights anyway right now let's head down to 99 when studios in Washington d.c. Today with roles in National had lights made them as we continue to follow public impeachment hearings lease of the house and. Teligent its committee has been hearing from the u.s. Embassy officer who overheard the phone call in which President Trump asked European Union ambassador Gordon Sunland for assurance that Ukraine investigations he wanted were going forward let's get the latest live from Bloomberg Irv Chapman on Capitol Hill Irv Nathan David Holmes said the restoration of military aid was obviously crucial to the a craniums But there's more on their minds than that although the hold on the security systems may have been lifted there were still things they wanted they weren't getting including a meeting with the president noble office I think that continues to this day I think they're being very careful they still need us presence Alinsky is trying to arrange a summit meeting with President Putin any of our support at the highest levels home shut in addition to the equipment American military training missions that help Ukraine create an effective battle hardened force to come back the Russians sparked invasion Nathan the Bloomberg served Chapman with us from Capitol Hill now Pietschmann drama was center stage at last night's Democratic presidential debate in Atlanta Amy clubbish our had a moment when she said if you think a woman can't beat Donald Trump Nancy Pelosi does it every single day the senator elaborated on that in the post debate spin room I think it's really important for we're never going to get in power including in the foreground for people to start talking about the fact that we're not going to look like any of the other presidents and I want to take that on and if they'd let me time President Trump says he will release a financial statement sometime before the election he announced that on Twitter while complaining about New York prosecutors trying to obtain his financial records Global News 24 hours a day on air to take talk on Twitter powered by more than 2700 journalists and analysts to more than 120 countries this is Bloomberg. Thank you Nathan from the Bloomberg 16 news room I'm Greg Jarrett this tech flash sponsored by Land Rover no matter where the holidays take you you'll find the Land Rover vehicle for the journey visitor Bay Area Land Rover retailer for special offers at the season of adventure sales of it now through January 2nd a Land Rover above. And. Your customers lost power in the most recent wave of precautionary shot by p.g. And e. 48010 counties instead of 300025 But the like still went out in many spots including parts of Callisto get Buster Davis owner of Busters Barbara he tells a.b.c. 7 he's glad he put out $40000.00 for generator to keep his place going very. Best investment the lights went out early yesterday and for many they are still out of this hour but they are coming back on according to the utility Bart police are stepping up the presence of the systems trains following a deadly stabbing inside one of its cars Tuesday officials take to reassure riders that safety is their number one priority these pay Times reports the victim of the fatal confrontation was identified as 49 year old Williams and who intervened to stop a suspected killer from stealing another passenger's choose. Variable time down time for a very. Densely packed the Warriors got that wind in Memphis to end a 7 game losing streak their 3rd one of the season next night in Dallas they fell behind the 1st quarter 44 to 16 the Mabs 11421094 dropping Golden State the 3 and 13 the coaches Steve flushed down the toilet literally just to move on. These guys are working really hard and they've made a lot of improvement for the last couple weeks. So we've. Gone from here to play tomorrow in Utah a car only had 8 healthy bodies Raymonde Green didn't play. The look at Dante play he had 35 points and a triple double and he only played 26 minutes the sharks like to get back to 500 tonight they've got a game in Vegas the n.f.l. Week 12 begins tonight a.f.c. South battle Indianapolis and used in the winner will be in 1st place for the Bloomberg n.b.c. Sports update on John. Barry index is down 3 tenths of one percent traffic and weather comes next. The. President. Through. His new. Controversial decision. To. 60. 2 The Bloomberg business. G.e.p. . Native digital transformation hundreds of Fortune 500 in Global 2000 companies work with g.e.p. To transform their procurement and supply chain operations. Unified digital platforms smart intuitive software that business users love drive up adoption user satisfaction and productivity g.e.p. Drive real digital transformation and achieve amazing results g.e.p. The world's best companies do better something remarkable happens when just the right elements come together ideas with technology data with inspiration investors with solutions this is what Invesco does every day because they believe the possibilities of life and investing are greater when we come together Invesco let's invest in greater possibilities together to learn more visit Invesco dot com slash together Invesco distributors incorporated Ben Franklin says is one of the certainties of life. And challenges. And complex regulation such as guilty. Intercompany transactions transfer pricing and business combinations need to be reevaluated companies also face additional income tax exposure worked in the past may not work today. That's a certainty is it. 16. Traffic and weather every 15 minutes. Here leave the office today. A little bit old redwood highway. About a 45 minute delay because. South. East. Of the maze. Bridges well. Sigler. Kind of messed up the commute to. A pick up truck accident on the shoulder. 3. 6070. 8 traffic. Coming back on for many of those who were and they didn't turn it off or as many as we thought they said about 300000 people turned out 350000 are. Coming back on 55 and sunny here in the city northeast of 6 Humidity 70 percent and the dew points 46. 41 a pretty good year potentially even yet with respect to returns us although perhaps Europe may outperform but how contingent is this on a trade deal on a lot of things that are all but certain Joining us now Catarina seminar she is u.b.s. Financial services private wealth advisor Catarina How much do you buy into this. Into this consensus and I think it's primarily because phase one to me at least it's a sure thing because when you look at the components that go into Phase one right it's all the pieces that both parties basically agree on and did the I wouldn't say more so there are pieces that they need so China agreed that to buying into buying u.s. Other cultural goods that's a done deal right you know in our case we would like to see more currency transparency we would like to have their markets open to our financial institutions so despite of the news of last couple of days I believe that phase one is going through and I also think that market is almost taking it for granted it's almost like it's bought in and you know Bill. Into the consensus that it's going to happen and I think when this happens we're going to have a pretty positive reaction my concern is not face one it's face 2 because I think that components of face 2 are significantly more important and also something that we don't quite have an agreement on so as one of the other things obviously moving the markets number one is raised is the trade deal that's really driving the market sentiment a market performance number 2 might be the Federal Reserve which has been very accommodative through 21000 the market seems to be discounting maybe one more rate cut next year is that kind of your view and a view of u.b.s. So we had a view that Fed is going to continue cutting rates as a matter of fact our view even just recently was that they're going to cut another $75.00 basis points going into the next year but we're holding back on that because we think that the benefit off what's happening right now is we had that that is extremely data driven and economic data that is coming in is not negative you know it's mixed but it is still quite positive so I think that Fed's reaction is going to be very much linked to the results of the trade negotiations so if we have a positive outcome Eve face to starts off well they might not cut they might hold off because it is such a powerful tool in their arsenal this rate cuts I think they're going to be reactive to you know what they see right so if you buy into the consensus idea that things are going to be pretty good next year how do you square that with surveys out of u.b.s. Showing that wealthy individuals are getting increasingly bearish but that is very true so I think that we have to look at the timeframes I believe there is going to be a very positive reaction to phase one once we get to face to it's in uncharted territory it's quite frankly you know like the you know the season 2 of succession that I know so many of the radio here seem to love and it's a great show because it is uncharted territory and we believe that there might be a sell off now. Now we see that there might be a sell of but I think the severity of the selloff will not be quite as extreme as markets anticipated and as a matter of fact you know we think the likelihood of actual recession is very low we think it might happen again we all depends on the trade but we think selloff is likely and that's what we're getting from our clients when clients call us and they're concerned they are concerned about the sell off they are concerned about the makeup of their portfolios and they're asking us you know quite frankly what to do and so what are you telling them now about positioning you know that the 4th quarter particularly December was such a shock to the marketplace to the decline in the equity markets and I'm sure as we get you know come up to that anniversary again the sure some of your clients are going to calling and asking what you cut how you tell them to position themselves so we tell them to broader the time frame in to your point I think that the that 4th quarter last year was a really good practice you know it's almost like a really good test for all of us for what's to come and there are several pieces in the portfolio design that come into play in here 1st of all liquidity so we tell clients number one going into turbulent Parkins going into volatile markets have enough on hand because then you know if we go into the prolonged period of volatility of negative markets we will not have to liquidate their perform the 2nd side is of course focus on yield focus on counter cyclical asset classes like real estate. Really changing around and rebalancing and repositioning fixed income portfolios because when people think that we need to proceed to recession proof their portfolios they focus on equity but fixed income quite frankly is just as important going forward what's your biggest concern. My biggest concern is that investors who are not prepared are going into this market with too much of a bullish outlook and that concern goes back to my days when I started as a new financial advisor in 1009 and if you remember the time frame was very similar in that talked. We're about upcoming possible upcoming recession yet that was the best performing year and people almost got. You know a little too brave and you know overweight in equities in any Thank you so much for joining us Catarina. Financial services private wealth manager and go down to 99 when you go save her for not keeping up the card faces final public hearing of the Week features 2 witnesses Fiona Hill former top Russian adviser on the National Security Council who served a warning to lawmakers on the House Intelligence Committee the cost of this investigation I would ask you please not from a politically driven fall subsists Ok you have on certain interests as Republicans and Democrats have agreed for decades Ukraine is a valued partners United States and it plays an important moment national security and she says Russian security services are spreading with a fictional narrative that Ukraine interfered in the 2016 election Democratic Council Daniel Goldman picked up on that point with the other witness David Holmes u.s. Embassy staff are in Kiev I would have beautiful out of here Putin's advantage to promote this theory of Ukraine interference. First of all to deflect from the allegations of Russian interference 2nd of all to drive a wedge between the United States of Ukraine which Russia wants to essentially get back into a spirit influence and both witnesses testified there was no doubt when president trumps lawyer Rudy Giuliani referred to investigations of the holdings they were really talking about Joe Biden more to come in 15 minutes on Nathan Hager this is Bloomberg. We'd like to introduce you to act tick tock the 1st and only Global News Network built for Twitter with 247 news streaming live check it out at to talk to see yourself on Twitter. As the professionals gateway to the world's Dot com where the only way is up sitting National Bank member f.d.i.c if you have hard water the limescale not only leaves white spots it clogs pipes and breaks down appliances costing you hundreds of dollars in energy and where eliminate limescale another water issues like brown staining bad odors in lead with hydro care water products available from Way Home Solutions waves affordable systems don't use salts or chemicals you'll love the way your water tastes smells and looks satisfaction guaranteed for more information go to wave best water dot com That's wave best straight. Number one independent satisfaction among financial investment firms visit Commonwealth dot com to learn more let's get our daily dose of the trade update between the u.s. And China to do that we welcome Michael. Economics editor for Bloomberg Television So Mike I guess the added wrinkle here is Hong Kong and the congressional. To kind of censure or kind of condemn what's going on in Hong Kong How do you think that plays in well you know clearly is something that upsets the Chinese the reporting is that they have told the president not to sign the legislation. Kevin surreally has reported that the president is likely to sign it and then where do we go from there does that invite a retaliation from the Chinese in terms of the trade talks to they do they then you know break them off and say they're not going ahead or if they want to retaliate do they do it in some other area unrelated you look at what's happened with wa way over the months and people tend to conflate the 2 the 2 countries have pretty much kept them as separate issues at the moment one is not contingent on the other so the same thing could happen with Hong Kong we just don't know. What are you looking for at this point figure out heading into December 15th whether this phase one deal is ago same thing I've been looking at all along an announcement from China phase one. And I say that because if the Chinese say it is then it probably will be if this is ministration says it is we've heard them say that many times that it doesn't happen much credence to you put into headlines that say the u.s. Is considering pushing back the December 15th tariffs to possibly March in order to allow a prolonged negotiation over Phase one well I mean there you're talking about the president again conceding defeat not getting the green mint that he wanted so does he do that again there's a lot of moving pieces here just being one of them if the Chinese were to make him angry in their reaction if he signs the legislation how does he react to that we have seen him get angry and just go ahead and impose tariffs he did that in August so it's really impossible to say that people who have watched these negotiations suggest the game theory is that the Chinese are going to be requesting that he do that in order to keep negotiating in that he would in that then the Chinese may decide to just you know stop the clock and wait till the election and see what happens so we really don't know at this point the latest word out of China was encouraging in the tea leaf reading kind of portion of what we do in that there was a report that the chief Chinese negotiator invited members of the u.s. Negotiating team over to Beijing to continue talks that said added regal in the sense that you know that the fact that they have to have another high level meeting to get anywhere but the fact that he would invite them on the could be seen as good news we're going to get some clarity on the congressional resolution i.e. It's going to go. At the president's desk understanding very shortly so is the expectations that this is a question of a number of days this is something that to be acted on before this is a day of 15th Ok the house basically decided to force the issue the Senate and the House both passed separate bills that accomplish the same thing that put us policy economic and trade policy towards Hong Kong on an annual review basis. There was some minor language difficult differences between the 2 that would ordinarily go to conference committee but the House Nancy Pelosi decided would just do the Senate bill so the House passes the Senate bill venit. Done legislatively and it goes to the White House and could go almost immediately and then the president will face a decision he has a certain number of days but I think I want to say something like 15 days to decide whether he's going to side ability but I would assume that the political pressure will be such that he'll have to make a decision before that the issue being that both Houses pass the legislation by unanimous consent and therefore there's a veto proof majority so he either signs it. The Chinese or vetoes it in members of Congress p.s. Choose yes to choose my committee thank you so much for joining us Michael Mickey Bloomberg international economics and policy correspondent giving us the latest on the u.s. China trade negotiations on again off again but they are they peer to be moving forward and of course probably the next data point will be whether President Trump signs congressional resolution you know Will it though I mean I think that people are basically saying that the training to create I'll get it out I promise it's almost Friday that the trade negotiators will try to put aside the Hong Kong issue and have so far and my question is when does that change what sort of the threshed . And is there the political appetite among both the Republicans and the Democrats to take a move that would push President Trump toward a more politically sensitive even more politically sensitive issue but right now people are saying this is largely symbolic and China is treating it as such yes hitting it right now I gree the negotiators probably are trying their very best to keep it to 2 issues separate but a morning of President Trump and president she just can't help themselves and one of them will will make it you know kind of tie the 2 together either wittingly or unwittingly and that could in fact set back the discussion so I want to see how this plays out but again it's over the next several days as Michael McKee was suggesting that this will have to be a decision and then of course we come up to the December 15th tariffs another decision for the u.s. Right now let's head down to a 99 with the views of Washington d.c. The world the national headlines with a paper make a poll begin with breaking news Israeli Prime Minister Benjamin Netanyahu will stand trial for bribery and fraud Israel's Justice Ministry just announced that in a statement that paints a picture of a leader who took gifts from wealthy friends and sacrificed the integrity of his office to win favorable media coverage Israel is no stranger to seeing its leaders under investigation but this will be the 1st time a sitting prime minister has faced charges back here in Washington Democrats have had their initial round of questions for today's witnesses in the House impeachment inquiry the Intelligence Committee has now recessed for votes on the house for let's get the very latest live from Bloomberg served chairman on Capitol Hill earth Nathan Fiona Hill the Russia expert on the National Security Staff was asked if there's describe the White House meeting between Ukrainian officials ambassador Gordon Schundler and chief of staff Mick Mulvaney and her boss John Bolton when Bolton quit the meeting he asked Hill to follow the others when they moved to another room he wanted to know exactly what was being said and what I can Bach and related to him he had some very specific. Action for me so I had to go to the law is to John Eisenberg you tell Eisenberg Ambassador Bolton tell me that I am not pos have a drug deal any and Sunderland cooking up both and meant Hill said the deal for a White House so much for your cranium president Vilinsky in return for the investigations President Trump demanded not my that's Chapman with us on Capitol Hill thanks Global News 24 hours a day on air and a tick tock on Twitter powered by more than 2700 journalists and analysts to more than 120 countries this is burger. Thank you Nathan from the Bloomberg $960.00 News Room I'm Greg Jarrett Interactive Brokers is our sponsor for this tech flash the professionals gateway to the world's markets introducing I became a light offering investors 0 dollars commissions on the u.s. List of stocks an e.t.f. Learn more at ib Care dot com slash. Says it expects to get the all clear shortly before all of its power lines are started the process of restoring power to more than 100000 people hit by planned blackout utilities as 48000 customers about 120000 people in 10 northern and central California counties lost electricity starting yesterday. That was only about a 3rd of the number p.g. Originally estimated it would blackout because a forecast for dry windy weather that posed a wildfire threat. Drew hundreds to protest a University speech by conservative commentator Ann Coulter last night. Reported. Riot gear regarding the event it Cal t.v. Reports a protester who disrupted culture speech inside the auditorium was handcuffed and taken out of the event University police say others were also arrested the Bloomberg Radio Bay Area index is down 70 percent. Is the best performer of 7.7 percent lifts up 4 point one percent. 6.7 percent. 5 percent. Area. For the Warriors one night after the win in Memphis that in the $78.00 they went to Dallas and lost $142.00 to $94.00 look at Don shake the man's 20 year old superstar only played 26 minutes but had 35 points and his 7th triple double of the season he had 33 points by halftime gold State coach is. From the beginning of the game he was saying he's. So. Good to us in the 1st quarter was 44 to 16 the Warriors. Of course know stuff. 3 and 13 they've got a game tomorrow in Utah the Sharks got a game tonight in Vegas as they look to get back to the 500 mark n.f.l. Week 12 begins tonight battle for 1st place in the a.f.c. South. And Indianapolis remember the sports update. Traffic and weather come next Bloomberg 60 the business of sports is calling sports. Business tax rate $46.00 time for the Bay Area stress traffic a weather. Every 15 minutes no rest for the weary commuter Larry Ellison Yeah really heavy up in the North Bay Greg for sure Petaluma north one on one old redwood highway action to clear the 50 minute delay back to Petaluma Boulevard as a result pretty thick from Petaluma as you make your way to the Golden Gate as well Bay Bridge toll plaza lights were going to be stacked into the bridge jam West 92 from 8080 all the way out to the Foster City side of things people trying to use the dumbos the alternative. For a slow. Looking good trains are on time little bird 3 day with a forecast sunny sixty's seventy's around the Bay Area partly cloudy drop in the lower forty's overnight cooler in the north a mix of sun and clouds for you tomorrow Greg sunny Saturday with the Bay Area is best travel gobbler reels of Bloomberg 63 boys. Thank you. $47.00 and sunny in Petaluma wintery southeastern for Humanities it 89 percent the dew point is $44.00 visibility is 10 miles a little bit of a mystery in the areas that evidently evaporated $51.00 and clear in St Alina that's where the power is coming back. $45.00 Cupertino is currently 50 and in Antioch it's 15 clear on Bloomberg 60. Markets are the breaking news 44 hours a day. Business. Bloomberg business plans. a Bloomberg business where I'm correct or. Earlier. Markets was Lisa drama lessons holes we need. Radio markets abroad to buy the Jewish community fine j.c.s. Don't advised fund is the smart choice to manage your philanthropy open a j c f a fund out to lock in a $29000.00 tax deduction visit j c f n y dot org It is the deal of the day Charles Schwab potentially buying t.d. Ameritrade both companies have not come out to confirm the reports in a number of media outlets although people familiar with the matter say that a deal could be announced as soon as Thursday you can see Schwab shares up 7.8 percent America t.d. Ameritrade shares also surging 21 percent Joining us now to talk about the logic of this deal in a no fee era is our own David Ritter of Bloomberg intelligence David what is the goal in combining these $2.00 companies. Yeah well you know with pressure on season and not just start trading fees but asset management fees and product fees. The goal is to get bigger right at the scale to absorb some of those revenue pressures and also a creature ability to cross in this case both Schwab and t.d. Ameritrade are leading providers 2 independent financial advisors So basically these are folks that are leaving you know the major brokerages to go out on their own and so they will get themselves onto the Schwab platform or the tedium. Trade platform and manage their accounts through their And also custody their their client assets so. This kind of combines 2 of the biggest players there and for Schwab it will add a base of more active traders to their mix of clients so it makes sense I think what remains to be seen as you know what's the opportunity for for cost savings in this merger either for merging platforms or closing redundant branch offices. That's something we're have to see because it wasn't you know if you believe the reported deal number it's not a very big premium or it won't even get that t.d. Ameritrade back to where it traded in late September so David one of the big issues I would think you characterize these as 2 of the leading economies the trading companies would be antitrust what's the risk here. Yeah I mean there is risk I don't think it's on the retail side because there are so many places now where you can get free stock in e.t.f. Trades that I think that that's not the bigger concern bigger concerns on the institutional side the advisor side which I just mentioned Schwab is the biggest player there. Based on data that I've I got from one of their presentations they have about a 30 percent share of that market Fidelity's another real big player. And t.d. Ameritrade is is 3rd place but what's interesting is 40 percent market share in just a range of other smaller players so it's still a pretty fragmented business but I think of the risk would be probably on that independent financial advisor business what's the long term goal here David I think just a matter of cost cutting until a new model can be found or is there some profit goal here with respect to the auxiliary as services catering to people that actually still do charge fees. I mean I. Honestly I think they're all still trying to figure that out right I mean Schwab is considering doing more lending to their customers both the advisers and the consumers so that he clear this is the consumer lending like credit card loans auto loans or would this be leverage for the financial purchases those exposed right so they already to some margin lending for the trader so this would now this be more unsecured consumer lending. That's not going to be a way to capture higher multiple for the stock for sure because now all of a sudden your more like a true bank and they're a big bank now but basically they're investing of the excess cash in brokerage accounts in safe assets like Treasuries and the like and they do some margin mining but this would be getting higher yield for those deposits in consumer loans but then that's a whole other set of risks and you could ask Goldman Sachs how easy it is to start up a consumer bank it's really hard it's really hard and it makes them a whole different type of company so that's one thing they've actually been talking about out loud which is is hard to believe in and you know how else do we monetize either the adviser relationship or the consumer relationship. They talked about maybe more proprietary asset management products but again that business is all going past event and the fee rates are coming down their tail so for now anyway it's a big cost it's it's hard to see how you get a bigger revenue boost right of combining the 2 What does this mean for the trade that they need to do something here that people have heard about that had their kind of left at the altar what I tell you guys last week there are 150 procurers back in 2000 now right. We're doing doing to add to the ones we can count on one hand yet very kind of. You know who who knows you know I think fidelity can play a role here at some point. You know each tree has several 1000000 customers and several 1000000 active accounts is definitely value there because it's very expensive to acquire a new account. So that's why he could certainly be a player even a big bank can mean. You know Merrill Edge is be evasive sort of you know self directed investing platform and they may like to make that bigger I mean I would've said that a few years ago but now it seems like all the big banks are diversifying getting back into retail brokerage again David Ritter thank you so much for joining us giving us your thoughts on what could be a potential tie up between Charles Schwab and t.d. Ameritrade a really really consolidating even further at the online brokerage business becoming banks taking more risk you have a just as an interesting question at the risk versus reward there given the capital constraints yes and the competition and when you talk about Schwab and went to that 0 commission again David Ritter was on talking to us about that deal and he said you're going to see Schwab get into more riskier more bank like activities a very interesting right now is head down to a 991 studios in Washington d.c. To get an impeachment update with Nathan Hager Nathan all these hearings before the House Intelligence Committees in recess now but to with this is have been appearing before lawmakers Fiona Hill used to advise the president on Russia in the National Security Council and she elaborated on her testimony from closed door deposition that Rudy Giuliani was called a hand grenade he was faking it on television making quite incendiary remarks about everyone involved in this on that he was Katie pushing forwards issues and ideas that would probably come back to haunt us and Fox I think that that's where we are today David Holmes a lab rated on Giuliani's influence on Ukraine policy he's a foreign service officer at the u.s. Embassy in Kiev sitting in March 29th situation at the embassy and in Ukraine changed dramatically. Specifically the 3 priorities of security economy and justice and our support for Ukrainian Democratic resistance to Russian aggression became overshadowed by a political agenda or noted by former New York New York City Mayor Rudy Giuliani Qadri of officials operating with a direct channel to the white man both Holmes and Hill say they had no doubt when Giuliani talked about investigating Karisma holdings he really meant Joe Biden and his son Hunter who sat on his board we have more coming up on Bloomberg balance of power with David Westin and Bloomberg terminal customers can watch the hearings at from last night's Democratic debate for washed. The Edgerton on what the last impeachment hearings of the month and also in Washington Jordan Fabian on President Trump cozying up maybe to the tech community so 1st let's start with that with. Tyler pager out in Atlanta Tyler we watched the debate last night but was a really a debate or was it just a series of presentations and candidates. Yeah I would say just to be definitely wasn't didn't didn't have as many fireworks as you see in the past I think the impeachment trial in Washington kind of took the front row seat here and the Democrats on stage disagreed on certain things but really how most of their fire for president trying to time this is my big question and watch that the goal should be I assume to get somebody to vote for one of the cans a stage other than President Trump has already turned to present trouble officer what was the argument they were making that would get done because it seemed to be much more sort of small.