Four governors in the central bank of mexico. It is his first meeting as head of the central bank. In the event of a tie he was expected to be the tiebreaker. It looks like that is what ended up happening. We are not seeing much of a reaction. The dollar versus the mexican peso. We are seeing the dollar higher by a quarter of a percentage point versus the mexican currency. On the bond side as well. Heres the mexico 10 year yield year to date. We have seen a little bit of an increase over the course of the year. 7. 38 at this point in time. Thats what we are seeing markets wise in terms of reaction. Julia . 5 basis points expected and. 5 basis points we got. Joining us with more is carlos rodriguez, bloombergs Mexico Bureau chief. Obviously julie mentioned the personality changes. Are also fighting higherthanexpected inflation and of course they are chasing the Federal Reserve who also chose to raise rates this week. Exactly. It was suspected that the hiking was going to be for 25 basis points. Many economists were projecting no more changes in mexicos interest rates. They were expecting they were going to remain at 7 . People started to believe that inflation was easing enough in order to not have to worry so much about inflation especially once the calendar effect in january which show a big them makers got worried a couple weeks ago when we saw the numbers from the inflation from the second half of november and now we see the results. Having even one more member asking for an increase of 50 basis points. That creates a challenge for the Central Bank Going forward. In novembernt announced a 10 minimum wage increase for 2018. We should expect to see that feedthrough quitting pretty quickly into inflation. Inthis is because last year january mexico liberalized partially the fuel prices. That creates a big impact on inflation. Once we start the new year economists are expecting the calendar effect is going to be gone because we are not getting higher prices from the imports from the state nor from domestic production. All the pricesnd are impacted by Energy Factors in mexico and we shall see a new trend of inflation going forward. The projection of 3. 8 by the end of next year. Julia this only being echoed by the central bank. Talking about the inflation outlook being more complex. A challenge to keep the cpi outlook anchored in the midand longterm. Talk to me about the currency as well. We have seen quite significant underperformance particularly in the last month. Thats a contribute infective as well when we talk about the inflation outlook. Weve got other concerns. Nafta in particular and those ongoing negotiations. A lot of uncertainty for investors. When you start discussing all the factors that can have an impact on the currency in the next few months most of them is for a weaker peso. Nafta negotiations are ongoing. Nobody suspected the outcome is going to be very favorable for mexico and it may take time before we have certainty on whats going to be of the nafta 2. 0 if there is a nafta 2. 0. Which is expected to be a close race between a couple candidates that are probusiness. Candidate that is from was called the hard left. Scarlet talk more about the income outcome of the election. We see this tightening bias by the central bank who does that favor . Its going to be tricky. If the u. S. Economy is doing fine the mexico economy is doing fine. Then again for a lot of the industry, the people that dont have to use dollars. Seeing that Exchange Rate of the dollar going for a weaker and weaker peso raises to memory a lot of the big prices that mexico experienced in the previous decades. I think thats going to be on the minds of a lot of people and that may affect the way they are voting next july. Scarlet carlos rodriguez, bloombergs Mexico Bureau chief. Thank you. We will be hearing from the new governor of mexicos central bank directly. He will be joining us on bloomberg next week. Weve gote u. S. Markets closing in just under two hours time. Lets return to julie hyman. Julie we have seen stocks trade in a pretty tight range today. They were higher and now they are lower. Not much change overall. We do see them following back after the s p and the dow touched record highs earlier in the session. Got materials that are a drag today as well as health care shares. I want to take a look at some of the Health Care Stocks we are seeing in todays session. Gilead is helping lead the decline. Talking about a breakthrough treatment that gilead developed to treat a deadly form of blood cancer that was supposed to be a relatively robust burner for the company is having trouble getting reimbursed from medicare and medicaid. The company says its confident its going to be covered but analysts are questioning the drugs estimates. That stock is down. Bristolmyers cancer drugs. Trading lower as well. A competitor of them announced it received fda clearance to begin its first Clinical Study spinal Muscular Atrophy trial. Also wanted to look at some of the auto parts retailers. Data for the sales u. S. That came in that are than estimated. A lot of subsectors came in with increases. One of the sectors that sign increase was auto and auto parts so we are seeing those retailers fall today. Lets get a check on the bloomberg first word news. Heres Mark Crumpton. Secretarygeneral says brexit will have little bearing on the uks commitment to the alliance. As eu leadersoke attended a Security Summit in brussels. Change britains relationship to the European Union. Thebrexit will not change uks relationship to nato. The u. K. Has again and again underlined of course that they will stay. And the u. K. Is very important for nato because next to the United States the United Kingdom has the biggest Defense Budget and is providing capabilities to nato and european security. Stoltenberg says todays summit provides an initiative to strengthen the European Defense system, increase defense spending and improve burden sharing. Vice president pence plans to delay his weekend departure for the middle east as congress nears completion of a tax overhaul. Thats according to white house officials who spoke to the associated press. Officials say the Vice President plans to leave for egypt on tuesday so he can reside over the senate during a vote on the tax package. President trump and republican lawmakers are hoping for a vote early next week. It was five years ago today that a gunman shot and killed 20 children and six adults at Sandy Hook Elementary School in newtown, connecticut. Residents say they are observing the day mostly in private reflection. Governor Dannel Malloy ordered flags statewide to fly at half staff. Throughout the years relatives of the victims have dedicated themselves to charity and other activism in an effort to prevent gun violence. Many areas of italys Northeastern Region are underwater and thousands of residents have fled for their lives following extensive flooding. Authorities say the flooding was caused when two rivers overran earthen dikes. Firefighters are using helicopters to conduct rescue operations. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Scarlet coming up, we had live to d. C. Sarah Huckabee Sanders says reports of House Speaker paul ryans retirement are inaccurate. She also mentioned the president has congratulated Rupert Murdoch on 21st century foxs deal to sell some assets to disney. Apparently the president told him the deal would be great for jobs. Julia from new york, this is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Im scarlet fu. It looks like the tax overhaul may be in jeopardy once again. Susan collins and marco rubio have criticized plans to cut taxes for the countrys top burners and their opposition could kill the bill. Senator rubio has said he will vote no unless the tax credit for children is expanded. Joining us now from washington with the latest is lori davidson. Before we get to marco rubio i wanted to pick up on what sarah Huckabee Sanders had mentioned with regard to reports that paul ryan would not be retiring. That those reports are inaccurate. How does that relate to tax reform . Hisax reform is really crowning achievement. What he has wanted to do since he came to washington. He was chairman of the ways and Means Committee before reluctantly his crowning becoming speaker. Andmake a lot of enemies not so many friends. Its a very natural time that paul ryan would say im going to step down and take my career elsewhere. Julia i cant help but feel a bit sorry for senator rubio. Before the senate bill was signed he was saying can we not please extend the tax credits for children for working then be in order to offset by less than 1 rise in the Corporate Tax rate . Today he is sitting there and suddenly sees a lower top rate by ax financed could argue 1 rise in the Corporate Tax rate to offset state and local tax deductions. I dont blame him for going hang on a second here. Yes. He has been very upset in recent days. Going into Mitch Mcconnells office complaining to reporters saying this is totally not what the bargain was. They shot down my idea and did something that worse for low income families. Hes very concerned about this. Said hesf utah undecided. You got other folks. Susan collins of maine saying she wants to see the whole package. Said hes of arizona not going to say one way or the other until he sees the bill which could come out late tomorrow night. Scarlet mike pence has delayed east in to the middle the event that he has to be around to break a tie. What specific conditions did Susan Collins give and say she needs filled in order to give her support to the final tax bill . She gave her support to the building allowed it to move to conference at this time around what she waiting for . See the medical expense to see the medical expense deduction retained. That looks like that will be in there. She wanted to see the state and local deduction made a little bit sweeter. The one thing we are still waiting on is the Alexander MurrayHealth Care Stabilization plan. This was her condition for saying you can repeal the individual mandate but i want there to be some sort of fixed to obamacare the next couple years. That would be in the spending bill set to come up next week. It would fund the government for several more weeks and its not clear if alexander three murray will be in there. Folks are not very happy with that plan. Julia what about the senator that actually voted no, senator bob corker . He was concerned about the deficit. I dont see anything in the details to give him a greater degree of calm. The leadership has sort of written him off. Its just assumed hes going to be a no. They havent done anything to address his concerns and with some of the changes the bill is more expensive and they are having to look for other offsets. Nothing nearly as great as corker would want. Julia thank you, laura davidson. Still ahead, disneys fox hunt comes to an end with a 52 billion deal. Scott galloway joins us coming up to survey the everchanging media landscape. This is bloomberg. Julia this is bloomberg markets. Im julia chatterley. Scarlet im scarlet fu. Julia a massive merger that could shake up the media landscape for decades to come. Disney is buying most of foxs assets for 52 billion. Bob iger spoke to Jonathan Ferro from burbank, california. A year ago i didnt see this one coming either nor did i see it coming six months ago. Rupert and i have known each other for a long time. We have a lot of respect for one another. Occasionally get together to muse about the business and in a get together this summer when we were talking about the Disruptive Forces we were seeing and the relative position of our companies i left thinking there might be an opportunity for us to do something with him. I thought about it for a few weeks. Called him thereafter and suggested maybe we should get together and talk about it and we did. Spend some time analyzing whether there was something to be done and what the Value Proposition might be for shareholders of both companies and ultimately rolled our sleeves up and got into a negotiation and here we are today. I think what we are doing is creating not only a Great Company but a great global opportunity for consumers to not only consume great content made by both entities but to consume it under circumstances that are andvative and compelling much more userfriendly and thats what the consumer of today demands. We learned more about your future now. Stepping down in 2021 versus 2019. Whats the future for James Murdoch . We have talked a lot about a potential role for him. He will be integral to helping us plan the integration process and we will continue to talk about where theres a role for him at this company. We have had a Good Relationship and he has been extremely helpful in this process and i look forward to talking to him more about it. A lot of people are thinking about a Succession Plan and maybe James Murdoch could be part of that. Is that something you can see happening . I am now extended through 2021 and the board of the company will have ample time to consider its options in terms of my succession and to reengage in a planning process for that. Its premature to speculate. It would be a board decision. Theres a pretty hefty breakup fee on this deal. You must be pretty convinced that the era of at t time warner , this deal that looks a lot more horizontal than that one can actually close. What gives you the confidence . We wont comment about the merger although we will say this is different. We think this will get a lot of scrutiny from regulatory authorities worldwide. It will take some time. We think the proposition is very proconsumer. Do ishis combination will going to give the consumer opportunities not only to consume far greater amounts of high Quality Content but to do so under extremely innovative modern circumstances. And we think at least from regulatory perspective if they focus just on the consumer that thats actually quite a positive thing. Julia that was Jonathan Ferro speaking to bob iger earlier today. We are joined by Scott Galloway, a marketing professor at nyu. Entrepreneur and author. Great to have you with us. You have said that disney has the opportunity to commend the space they are in. What do you make of this deal and is this part of that commanding focus . Everyone is bulking up. Netflix, the 60 stock rise. The fact that its becoming the operating system for our television and they are trying to get in early and be a viable competitor. Disney really is the only ,ompany that has the leadership the credibility and the have to be an effective competitor to netflix. The other one kind of waiting in the wings in the celebrity death match of 2019 is not only going to be netflix versus disney but amazon. As they come into it. Scarlet we will certainly look ahead to that. I want to stick with disney for now because the fox assets that disney is buying is tied to the cable bundle. It will help with negotiations with distributors in the short term. It will give it some pricing power. It doesnt really address the Court Cutting phenomenon. Its not that people are cutting cords. Its that they are cutting espn. Theyre deciding they no longer want the food network 2 or espn 4. What disney might have the power to do especially with marvel and star wars and even their resort parks and cruise lines is to pull of the ultimate gangster move and put all of this behind a wall and say all of you have to enter into a prime like or netflix like recurring revenue relationship with something offered by disney where you pay a certain amount per month in exchange for all of these things including content that only we have more access to our parks. Way thathats the disney triples or quintupled its market cap in the next five to 10 years. Scarlet content plus the disney experience for a price that is closed off from everyone else. Julia is it closed off or is it just cheaper to buy the great handle . Bundle . Its about access at a price. Thats the hybrid model. Theres no doubt about it that at some point they would have to stop distribute in this content to other bidders including netflix. Julia thats what they are going to do. Adobe said we are going to people 29 ag month instead of 1200. The most Successful Company in the last decade figured out a way to offer a bunch of things behind the curtain and charge 99 a year. Under the auspices of prime. Disney right now is the First Company with us combined tieups that offers the possibility of a prime like relationship with households across content. Scarlet we will see how that plays out. I want to get your take on twitter. We have seen shares climbed today and there is that theres increased odds of m a. Lloyd blankfein had tweeted a picture of himself with jack dorsey as well. What do you make of twitters prospects . Twitter is one of the right fist companies for activist intervention in some time. The ceo can manage a company that has 90 of his net worth is negligent. Had thehas never performance to realize the promise. As