mark: police say the driver is an australian citizen of afghan descent who has a known history of drug use and mental health issues. u.s. senate majority leader mitch mcconnell says he doesn't expect the chamber to take up changes on the welfare system in 2018. he addressed the issue at an axial's event in washington. >> i think the democrats are not going to be interested in reform, so i don't expect to see that on the agenda. what the democrats are willing to do is important, because in the senate, with rare sections -- with rare exceptions like the tax bill, we have democratic involvement. mark: he added infrastructure is a key objective or next year and "at a minimum he expects technical corrections to the bill." all remaining significant evacuation orders in areas the smoldering remnants of southern california path huge wildfire have been canceled after a new round of winds cause activity. warnings of high fire risk were canceled for santa barbara county. in ventura county, firefighters attacked a section of the blaze from the air because terrain was too rugged to get ground crews in. global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪ julia: live from bloomberg world headquarters in new york, i'm julia chatterley. scarlet: i'm scarlet fu. joe: i'm joined wiesenthal. julia: where 20 minutes from trading, treasury stopped a wink long flied. joe: the question is what'd you miss? scarlet: a 200% surge. a new york-based company joined the crypto. by shifting its focus from beverages to blockchain. nike earnings out today after the bell. we bring results as soon as they cross. why the company's growth may come outside of north america. midsized cars are falling faster than some can handle. we look at what to expect in the auto industry coming 2018. julia: what'd you miss? anyone who gets into the crypto crzaze. take long island iced tea. this is me, this is a serious face. the new york-based beverage maker is rebranding to invest in opportunities leveraging blockchain technology. it's stock rose more than 200% on the announcement. gentile,s now is guy he spent years investigating penny stocks undercover for the fbi. now he has identified a new pump and dump scheme around the crypto stock craze. great to have you with us. >> it's classic. it has all the hallmarks of a pump and dump. something trendy, line of rest releases, running your stock up. a secondary offering is announced. julia: do you have any intention of doing anything remotely businesslike in the cryptocurrency craze? this example presents a part of your business? guy: for my own business? julia: no for the pump and dump when you are pumping are you doing anything? guy: they need to show they are involved in crypto in some way. scarlet: i will read something from their website. the company is in the preliminary stages of evaluating specific opportunities involving blockchain discussions. they are in the preliminary stages, but include potential partnerships, investments, or acquisitions. there's a lot of we plan to do this, but no details on what will happen or how. guy: they need press releases in going.o get the hype some will invest into blockchain riot invested $12 million into some crypto mining technology. they bought a company for $12 million that maybe spent $2 million a few weeks ago. it doesn't make any sense. --: we see the stoxx shoe up the stocks shoot up. , are thesebuying people who want exposure to the sector? today's game is know it will probably crash,, but it is where the action is, let's see if i can roll the dice? guy: there are daytraders involved in these. they want to play for the short-term swing. but there is retail that got sucked into it, they end up holding it and averaging down as it goes lower instead of selling. julia: what do you do that short trader? guy: we are an online trading firm, there is no investment advice or anything like that. julia: you have experience? you work with the fbi. the reason why you were working with them, you got experience of recognizing these things and trading these things. guy: we were able to see what was going on behind the scenes, how they plan their deals. these stocks slip that same blueprint -- that that same blueprint -- it's that same blueprint. scarlet: these companies have to know their is company on them. i think these companies the management investors for capital , they say we will give you a few million dollars, change her name and come up with press releases. they need the cash. joe: when people see these things, their mind goes back to 1999, and companies would add.com to the name or have some internet thing. are there other periods, that's obviously the one that everybody remembers, have there been other examples of these waves they have jumped onto. guy: you did have some real companies come out of it, like yahoo! and microsoft. it's more resembled like what would happen in the bulletin markets and the pin sheets, oil and gas companies were oil is $150 a barrel. when social media was, they were pumping social media stocks. there was this last year. now with blockchain. . it comes down -- now it is blockchain. joe: the same people who are currently doing blockchain pumps a year ago? if you would have searched their names, it would've been the same pattern? guy: those people are already in jail. julia: beauty queen treat but -- do you defeat create for cash guy: now, there's a frenzy. anything blockchain related will go up. i do see bitcoin by itself is topped out. -- bitcoin is are like the blue-chip of the coins. right now everybody is rotating to the alt coins. ripple and things like that are skyrocketing. scarlet: that's part of the process? part of the pattern where you see the first one peak? guy: people will buy if it is going up, if it goes down people don't buy. they're rotating out of the ones that are not going up and to the ones that look cheap, but are not. joe: is there an obvious thing regulators could be doing to prevent people from getting burned? guy: yes, the stock is up 100% for the day. let it cool off, come back the next day. julia: do you think there should be any kind of warning system or greater awareness for retail investors beyond the fact that if something rallies 100% there needs to be a stop on it for a while? guy: there's always something you can do. the fcc is always late to the game, they always come after the fact. it's rare that they come in while something is going on. julia: sophisticated investors are saying some people will make money, some will ride the wave. guy: if you are a day trader and in and out the same day, maybe you can make money. julia: have you taken a position? guy: yes. i get in and out on the short side. scarlet: how long are you in for? guy: like one week, sometimes a day. there are a few that i was in and out this morning already. julia: would you short bitcoin at the levels? guy: you would have to sure it with the futures contract. i wouldn't sure it -- i went short it -- i would not sure it. btc, a stock that tracks bitcoin and the cash markets. there's definitely a strategy to hedge. there's plenty of profits they made on that. scarlet: when does this end? guy: i sold all of my coins last week. my mailman is talking about it, everyone is talking about it. i always told myself when everyone starts talking about it, i'm out. i'm at that point. when retail start buying, who is going to buy after retail? no one, they are the last ones in. scarlet: guy gentile, ceo of short trader. coming up, minimum wages are rising at fifth third bank. we will speak to the chief about what is behind that increase. it may have something to do with the tax cut. this is bloomberg. ♪ ♪ scarlet: we have breaking news crossing having to do with bitcoin and goldman sachs. goldman sachs is said to be setting up a cryptocurrency trading duct. this would make them the first large wall street bank to make markets in cryptocurrencies. we are following the wild swings for bitcoin and companies that engage in blockchain, a technology underlying bitcoin. we will have more in a few moments. in the meantime, what'd you miss? fifth third bank announcing plans to raise its minimum torly wage to all employees $15 as well as disturbing a one-time bonus. generous? it comes in the wake of a new tax code passed by congress and could be signed into law by the president as early as tomorrow. erik schatzker is with us, he is speaking to a special guest. >> we have teresa tanner with us from cincinnati, the chief administrative officer at fifth third bank. good to see you. let's begin with the tax bill, and what robby speaking it means for fifth third -- what broadly speaking it means for fifth third bank. like all companies, we are going to have a lot of benefit from that. we are still going through the details to know exactly what it means we do know it will give us an opportunity to invest in new things. and investing in our people was the first thing we wanted to do. , haddid some rough math you had a 21% corporate tax rate in 2016, you would have saved $72 million. what you paid an effective rate of about 24.5%. doing more math, the $15 an hour your paying to some 3000 employees compared to $10 you paid them previously is going to cost you $24 million more. then you are paying out $13.5 million in these bonuses. how did you come up with those numbers? why is $1000 the right number for a bonus? wife $15 an hour the right minimum -- why is $15 hour the right minimum wage? teresa: for the minimum wage, we have always paid a competitive wage. we frequently checked the market to make sure we are paying a competitive wage. we want to be more than competitive for certain roles. especially those roles that have direct impact and interaction with our customers. we want to be best in class. we thought $15 an hour makes us just that. for the thousands -- for the $1000 bonus, nothing terribly scientific area we just wanted to do something -- nothing terribly scientific. we just want to do something meaningful. it is something meaningful for our employees. >> nor what i suggest you shouldn't be giving 13.5 thousand people a thousand dollars one-time bonus. there are questions -- teresa: we are excited to be able to do this. >> we also want to know about the politics decision. was stopped you from making those choices before hand? adds up to 1.9% of your income last year, not like it was a make or break kind of amount of money. teresa: first of all, we have invested in our employees always. the this year, beginning at beginning of the year, we put in new programs like maternity concierge for employees. paydded four weeks of 100% for all new parents, including foster parents. we are investing in wellness, new workplaces, investing in our employees is not anything new, it's not anything we are doing just now. this new legislation, this tax reform will give us additional opportunities to invest in many ways. investing in our employees will continue to create more shareholder values, more value for our customers. although there are different ways to invest, certainly investing in our employees is not something new to us, it is something we do all the time. >> how do you make the decision that the amount of money you should invest in the employees, is roughly speaking one third of what you will save because of the lower tax rate? why is that the right number? why not more, why not less? teresa: it is the right number for now. for us tomany ways invest our capital for shareholders and customers. we will continue to look at all those ways. ,ncluding our employees investing in employees is the right thing to do. it will create additional value. whether it is new product, innovation, services, there will always be additional ways for us to invest that capital, and we will do so wisely. >> how much of what is not going to employees will go directly to the shareholders in the form of stock buybacks or perhaps a higher dividend? teresa: we are still working through those details. we recently had an investor yesterday where we discussed our plans in more detail for 2018. that is certainly out there for those that want to date into the details deeper. those things will continue to look at, and we will make decisions for our customers, shareholders, and employees. >> should shareholders assume they will see some of that money? teresa: certainly. creating shareholder value is our intention. it's what we do. certainly you are going to see continued investments and continued value. >> the reason i ask is some shareholders the best way to create shareholder value is to give them all of the money, not to pay it to the employees, not to spend it on other projects, if you have money you didn't have before think to tax cuts, how about giving it to me? that's the idea. teresa: we believe our employees create that value. our employees and creating an environment where they can do their best work and bring the best products and services to the market does create shareholder value. a philosophyays be of ours. we have always invested in employees, which has allowed us to deliver the results that we deliver. >> the $15 an hour number was the same that wells fargo announced. the $1000 bonus number was the same we heard from at&t and also from comcast. was their participation in these discussions by somebody from congress, or someone from a trade group lobbying organization to help you get to those numbers? teresa: not at all. it was interesting that a lot of us came to similar answers. decision that was absolutely coincidental. >> how about contact with the white house? teresa: not that i am aware of, no. >> this was strictly fifth third bank saying we are going to save this money thanks to the tax-cut, and we have come to these numbers. you realize it seems more than coincidental that they are all the same? teresa: i think it is certainly interesting that we all came to a similar answer. $15 minimum wage is something that has been talked about in a lot of different sectors for a while. that one is easy to think about. some of our peers have made that commitment. no, it's absolutely coincidental, but we are excited that we are able to do this for our employees. they certainly are excited, as well. delighted. they are it is great of you to take the time to explain to us in more detail the thinking behind those decisions. teresa tanner, thank you very much and happy holidays. scarlet: we just want to expand on the breaking news we told you about. goldman sachs will be setting up a cryptocurrency trading duct, positioning the firm to be the first large wall street firm to make investments in it. this is bloomberg. ♪ ♪ scarlet: what'd you miss? bloomberg's group goldman sachs is setting up a trading desk to make markets in -- joining us with details is kidding campbell. andoldman is going forward they are going to set up a cryptocurrency. we have heard this a couple of months ago, but it was very early in the process. it was still up in the air whether they were going to 4 -- the weather they were going to go forward with it. now we know they are going forward, assembling a team. it's serious. joe: one of the hardest aspects is technical implementation. theactually have to hold coi, or get hackedns. is that a -- or get hacked. custody,curity, its how you actually hold it or keep it on your balance sheet. it would it surprise you to know that bank regulators have not done a lot of thinking about where cryptocurrency fits on a bank balance sheet, how much capital you have to hold against it. all of these things need to be worked out, they are in the process of doing that. julia: we have been showing it in comparison to emerging-market currencies. scarlet: it should be frontier markets at this point. julia: the interesting thing to trade. one of the options -- what about options? >> it seems like it. julia: bitcoin barely budged today. is that important? >> barely budged in terms of price action? julia: in terms of a reaction. you have one of the biggest banks in the world, they say we are going to start trading this. would you expect to see optimism? if this is about greater integration rather than retail. i see this as a signal of bigger banks getting into this. some legitimization of bitcoin. one reason that you may not have seen the move is because of futures. futures have been out for a couple of weeks. realhas brought some legitimacy to this. maybe they got ahead of goldman. scarlet: thank you so much for the scoop. the trading desk will be in state business as well. the market closes next, these are the numbers. this is bloomberg. ♪ ♪ julia: what'd you miss? creeping higher. boosted by energy and financials. i'm julia chatterley. scarlet: i'm scarlet fu. joe: and i'm joe wiesenthal. ♪ let's begin with our market minute. u.s. stocks closed higher, but in the last 30 minutes of trade we saw a dip. dow closing up 57 points. earlier, it had gained a lot more than that. .f course we had gdp data the number was revised down slightly down to 3.2%. joe: slight moves and slight gains in the market. another day of holiday trading. is the themethat all week. we just kind of drift. hasthe past few days, it been higher. in terms of stocks, let's take some looks at individual names here. andave included an brain or boeing. the two are discussing a potential combination. this would be a deal that would expand boeing's line. line, a retailer that has to do with athletic gear, doing well. up 13%. a surprise sales gain. perhaps, the athletic shoe industry may be on the mend. if you look at bed bath and beyond, christmas may have come early, but it is not good news. the stock down 13%. heavy promotions may have spurred holiday sales in december -- in november, but not december. tea, rebranding itself. joe: nonalcoholic long island iced teas which is its own discussion. julia: it's about the future. companies, where we talk about the future and pricing them braced on future opportunities. scarlet: but this company is not doing anything right now. joe: i like the optimistic case heard let's look at the government bond market. a little bit of a give back at the long end. this was a dramatic move heard we had 2.5% at one point on the tenure -- on the 10 year. giving a little back today. a quick look there, x a kos 30 year yield surging. year yield 30 surging. julia: you know me well. let's take a look at currency land. the dollar dropping. a losing streak of four days. the canadian dollar rallying. marginally retail sales in canada surging. at 0.3% increase. now around 60% priced for a january rate hike. priced.just shy of 50% i have a chart, which i should pull up. scarlet is busy. if you have to guess, what the best-performing currency is, since the second quarter of this year, joe would probably have gotten this. zech. what we have seen is the biggest currency rally globally. it appreciated more than 5%. we have seen it give back some of those gains in december, what we got from the central bank members voting to hold interest rates at half a percent. their give back there on the currency front as well. that one to watch. fun and games over in mexico. losing ground here. now we have the peso hovering around the lowest it has seen since march. in addition to the ongoing concerns about what happens with nafta weighing on the currency. an investigation involves the former deputy of the sitting president. it could once again raise concerns and peril the parties chances in the july election. then we have concerns about the rival leftist leader. joe: let's take a look at commodities. oil and gold, the two that i always check out not doing anything today. very quiet day in the action there. those are today's market minutes. scarlet: what'd you miss? pundits debate. the diagnosis of the leak. bill, the limitation of business interest reduction is a first important step in this process for increasing productivity. explain why. -- very fewto link link the two together. slowhas linked productivity. when you look at capital structure, which we focus on, we discovered that debt incentivizes firms to take safe investments. that is not the kind of productivity that you want firms to take right now. so for the last 10 years productivity has slowed down and at the same time, debt -- the use of debt has been more intensified. what we have been doing in our research is saying that if we actually look at the incentives of where the tax bill is taking firms, they are taking off the interest expansions. depending on where the horizon is. if you incentivize firms to use equity, that means they will take more long-term bets. they will take more investments because invest -- because equity owners stand to gain. they are going to want to win limits a firms taking. earners want to see downside, equity owners want to see upside. specifically, how does the bill encourage equity funding instead of debt funding? bill: it reduces the subsidy for firms with debt. over the years, more and more debt has been used because the cost of using debt has dropped like a rock. especially, the zero interest rate that we are in globally. we are trying to look at how capital structure can be used to incentivize firms to take productivity enhancing types of investment. we think equity is the source of where that future growth will come from. especially in boosting labor productivity. the right culmination of labor capital and technology. that is what you need equity owners to look for. they're looking for the long-term and not just to be paid back. julia: just be specific. in the analysis you did, you look at what kind of reduction in debt it waits to a rise in productivity, then tie that to wages for us as well. you started off directly discussing what impact this has on wages. just explained the sensitivity here. on what we could see. bill: our research is -- we will be digging into data more carefully -- but the results seem to indicate that if you shrink or limit the growth and -- by about $300 billion per year, you could boost productivity by three quarters of a percentage point. it wasd go back to where in the heyday of the 90's through 2005. now, it has gone down to less than half of 1%. involvecy solution will a lot more than that, but certainly an important step toward boosting productivity is getting firms to get behind better types of investment productivity. this is a subject that we will be discussing in our conferences and symposia for the next year. scarlet: milken has always done a lot of work. debt encourages safe investments, and that is not what does productivity, but we are pretty late in this current cycle. this might not be the best time for this tax cut. what kind of risk does that create, this change in into it centralization. talk about thele wrong time for a tax cut, i agree. it is not a good time to be pushing on resources. but when you think about it firms not using a lot of their funds by investing. they give it back to shareholders. they're not investing because the debt used to finance a lot of these buybacks is not allowing firms to take a long-term view. one of the key elements of this tax reform that incentivizes a switch in the composition of their balance sheet, as opposed to changing the size, that is the key in getting more productivity and higher growth in the future. people say we cannot get beyond 3% growth but that is because firms have not taken on the right kind of technology and combined it with the right labor. julia: forgive me for asking a broader question, when you research is so specific, but we have struggled on the show to an economist to give us assessment of this tax bill that does not suggest it is just a short-term juicing of the economy. assessment here, are you more positive than the average that we have seem to have spoken to? i am more positive because i'm focusing on one element. if you take the overall tax bill, it will increase the deficit by about $1.5 trillion. but that is over 10 years. gdp is $20 trillion per year. you are increasing the deficit by one trillion over 200 trillion or that is not a lot. especially at a time when the economy is not short of resources. i think this is the best of all times for government if they're going to engage in deficit financing, this is the time to do it. julia: this is the time to load up. thank you. bill. nike's report. reachstill on track to its target by 2022? this is bloomberg. ♪ ♪ mark: i'm mark crumpton with first word news. recognizing jerusalem as the capital of israel. the 128-9 vote came despite nikki haley's warning that the move could put funding for their nations and for the global body at risk. >> when a nation is singled out for attack in this organization, that nation is disrespected. what is more, that nation is asked to pay for the privilege of reading disrespected. in the case of the united states, we are asked to pay more than anyone else for that dubious privilege. mark: key u.s. allies backing the measure over the the u.s.'s threats. they were joined in opposition by guatemala, and micronesia. australia, included canada, and argentina. president made a pitch to investors in south africa today on his first foreign trip as head of state. he said his country will provide great financial opportunity under his leadership. on zimbabwe is open for business. [applause] yes there will be political primarily the economics, economics, economics and trade for zimbabwe. mark: in a meeting with south african president, symbolic weight president said he was happy to be in the country. sim bob way last month -- to zimbabwe last month. at cues of bombing a bus in order to profit, has begun. march and a police officer were injured. the suspect faces a 44 count indictment, including 28 counts of attempted murder. pope francis prayed today for a merciful final judgment for cardinal law. in 2002, court documents revealed that he failed to stop priests who molested children. in a final blessing, at st. peter's basilica, pope francis bwest the coffin with holy water. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: breaking news. nike route sporting -- nike reporting results beating estimates. in terms of revenue, that was an increase to $8.6 billion. analysts were looking for 8.4 billion. nike reports growth by international geography. direct,ength in nike without going through distributors. nike shares have little changes right now. julia: bloomberg intelligence analyst joins us now. as we were expecting, the u.s. was an area to look at. they are having to use the international performance to offset our weakness. results,ooking at the china up 17%. europe is up as well. north america is still challenging. it is a little weaker than what i expected. it is down 7% on the footwear side. still sluggish. joe: the stock is not doing much after hours. it has been on a nice run over the last couple of months. whole thing about people were going to wear adidas instead of nike, is that still a thing or was it a phase? >> that has been going on for the last 18 months. pipeline ofk at the products coming out, we are excited about the prospects next year. there is a lot of inventory out there. supply is way more than demand. they have to clear out a lot of products. joe: when you say people are excited, that store looks familiar. [laughter] joe: when you say people are excited about the pipeline. what do people see? do they see a specific shoe or what does that mean? year, sugar came out last a cool looking shoe. clear shoe. there is a lot of demand for that shoe. 170 or $190.spend that is what they mean. it is a matter of scaling it to impact the business overall. scarlet: how has nike's shift to selling directly to consumers changed how they organize its business and how it spends and manages the different parts of its empire? >> more than anything, the thing nike does best is to control where it sells and most importantly in what quantity. if you work for nike, foot locker, finish line, you get an allocation of product. toe has moved away from that sell on its own. they kept some exclusive products when he comes to the retailers. there is some shift to direct channels, but they still have very strong strategic relationships with their partners. the more money those partners invest in branded spaces, the more in demand products they will get. scarlet: the more exclusives they give to those guys. what else do they need to do here? china come as you pointed out really strong growth there. they have they are selling erect to amazon. i know you have said the pipeline, but -- >> it starts with product. they have to put a more compelling product out there. we are seeing issues there. it's a matter of a clear product. scarlet: isn't it sort of waiting for the fashion to catch up as well? people always go back to nike. >> breaking news here. i have seen a deed some sales i have not been doing in the last 18 months. some of the products going on sale. julia: cutting prices. -- nike is see getting its mojo back. i did buy a pair of adidas sneakers in december. when i get into it is out. scarlet: coming up, the u.s. automobile industry crashing an eight year streak. sales ticking downward. what is driving it and what it means for auto sales? julia: did you buy them on sale, by the way? scarlet: i only buy them on sale. this is bloomberg. ♪ ♪ scarlet: what'd you miss? the u.s. automobile industry saw a decline in sales in the first time in eight years. there is reason to believe it will continue decline in 2018. joining us now to discuss is number intelligence senior analyst kevin tynan. clearly the numbers from 2017 show they are fairly late in the cycle of new cars. how different will 2018 look, rollover?nsider the kevin: keep in mind the decline from 2016 which was a record year to 2017 is a decline or a plateau. it is at a very high level. 17 million units in the u.s. is very sustainable in terms of profitability and getting auto makers off of incentives. while it is a decline, and that will be the headline, the fact of the matter is it is at a sustainable level. plus, you have a mix of trucks and i would in close pickups -- i would include pickups in that. compared to work would be. julia: i would never wish to compare the auto market with what we are seeing in cryptocurrencies, but i do feel like there are some parallels. at volume and profitability, as long as they were announcing future intention over investment with electric vehicles, or self driving capability, then investors gave them the benefit of the doubt. does that continue in 2018? have talked about that. maybe that is something that unwinds in 2018 a little bit. when you look at the reality of what we hear in terms of autonomous vehicles, electric vehicles, you would think that those numbers were so much greater than they are in terms of penetration in the u.s. specifically. .lug in vehicles are 1% including hybrids, it is 3.5%. yet they are in the top two out of three stories we read every day. was beingtion afforded to companies who showed that they were on the verge of a self driving rakes through or we will electrify their entire fleet. those valuations might unwind a little bit for those reasons. for the future tech idea. julia: press release movement. joe: meanwhile, tesla its self continues to surge even as the estimates keep coming down. kevin: that has been the story for years. it is amazing when you look at earnings revision history on tesla where profitability was supposed to be in 15, then 16, then 17, and now it is out to 19 yet the stock keeps going up. when you look at the model three and its potential, i think there is an idea that it will be bigger than the entire entry as a whole. at the price point it does that, it is not realistic. scarlet: a lot has been said on that. all right, intelligence senior analyst kevin tynan, thank you so much for joining us. we will discuss next. this is bloomberg. ♪ ♪ i'm mark crumpton with first word news. by's president -- vice president tense made an unannounced trip to afghanistan. first to the war-torn country by president trump or mr. pence. it came as the trump a path totion charts ending the war in afghanistan. under heavy security, he landed by military aircraft shortly after sunset. minister isgn welcoming. no is calling it a global to intimidation. despite all the pressure exerted on them, the general assembly ated 128-9 with 35 sentence. the driver of an suv that rammed into a crowd in central melbourne, is an australian citizen of afghan dissent with a history of drug use and mental illness is known links to terrorism. >> this is horrific. it is evil. we are not defined by these sorts of incidents. i am confident that we will go about our business and we will celebrate christmas. we will be at the boxing day test and the carols by candlelight and spent what will be a joyous time with people that we love. mark: authorities say the driver of the suv had also been known to police by minor traffic offenses. office will investigate how a tiny florida company one more than $30 million in contracts for desperately needed relief supplies following hurricane maria. senators,r to seven inspector general john kelly said he would initiate the review. llc never delivered the tarps that were needed to cover puerto rican homes. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. let's get a recap of today's market action. a little bit of a rebound in u.s. stocks. they broke a two day losing streak. congress passed a tax bill yesterday. 2/10 of 1%.gaining julia: what'd you miss? only four days until christmas. holiday shopping is in full swing. but not for all the right reasons. forf industry analyst retail at the npd group. what are the not good reasons? are buying a lot of products, but it is either on sale, so margins are stressed. the other not great reason is that people have not entered into the full-court press for shopping for gifts. they are just now. it was a late start for gift shopping. scarlet: what's the difference between the way people spend when they buy for themselves? marshal: buying for yourself is on sale and only on sale. the other side of that is you don't tend to be as impulsive when you are buying for yourself. if i am buying gifts, i think this is great for this person. we tend to shop here and the sport of shopping is contagious. that is what is missing in holiday 2017. there is no frenzy. no sense of urgency. joe: cap people become more selfish and individualistic such that self gifting is a bigger part than it used to be? marshal: the answer is yes. people have gotten to be more self-indulgent. definitely taking advantage of it. the economy and consumer psyche is helping. they are not feeling as guilty as they had in the past about spending on themselves. the other side of the equation is, it is all about experiential gifting. a lot of that does not him polls -- does not promote impulse shopping. a weekend trip somewhere i will buy myself a sweater. scarlet: shopping is no longer a sport. our producer but all the christmas presents for this year online from his couch. he never actually engaged with anyone to do it. --ia: the shopping's tort the shopping sport. marshal: think about black friday and its history. the family would get together or you would go out with friends and it was a mess. that is not really the same anymore. now it is like him i did the homework and if i want to be social about shopping, i share it through social media. i am not experiencing with friends and family the way we used to. you are seeing traffic down, shopping visits down, the actual are just as per occasion down. a lot of the numbers are heading in a tough direction. not that is not a healthy holiday it is just very different. scarlet: another trend is that when people do things, they want to buy through local merchants so they can visibly support their community. there is a story that goes along with the gift they buy. marshal: gifting this year is more about gifting from local merchants to your point, but gifting with a cause. the younger generation is really big on dylan tropic gifting. they're willing to spend more money for a gift if they can support a cause that will help make the world a better place. it makes people feel good about it. they do not worry about price competition that way. joe: besides amazon, we all know they are doing great. who else is positioned to take advantage of the new way of shopping? marshal: i am out in shores -- i am out in shops more than every day today. when i see stories like target or walmart restocking the shelves, that is an impressive thing. in years past, they would let it sell out. when you go into stores and see a retailer who is dripped on the shelf, you don't want to shop there. you want to go to a place with a lot of products. when i go out looking for the hottest products, like speed cookers, i look to see who has them on the shelf. that is impressive. julia: very quickly. just go back what you are saying about self gifting, how does that compare in-store versus online. there's something secretive about being online. marshal: a lot of online retailers do not like to talk about this. the impulse the equation online is much less than in store. in-store, it is about 45% of all purchases come from an impulse purchase. it might be an additional item i buy. online, they do not do that. they have not gotten the logarithms down to a science to say, you bought this and then this would be good for you as well. people do not look at the crawlers on the bottom. they want to get out to the checkout side. julia: we were talking about this earlier. the disincentive of saying that i will abandon. scarlet: marshall cohen, chief industry analyst at npd. happy hunting when you go to the mall. breaking news. the house voting on a temporary spending bill to keep the house funded. bet to see if a the senate will go through as well. coming up we will speak to ceo of lightning labs. it could be a cryptocurrency game changer. this is bloomberg. ♪ ♪ scarlet: what'd you miss? lightning labs could be a cryptocurrency game changer. faster and cheaper payment handling then bitcoin, visa, and paypal. thanks scarlet, i here with elizabeth stark. thank you very much for joining us. a lot of people talk about how payment using it going aren't that good. these are high. before he talk about how your technology is trying to tech -- addess that. dres cars want tolot of get on the road, but there is a lot of traffic. the way fees on bitcoin work. you can pay for people trying to go faster on the road. we are in a traffic jam today. so, there are ways the industry can implement technologies like segregated witness which will remove some traffic on the road. or batching, like carpooling am a paying less to do so. to get these lower. is that to some extent the high confirmation times are simply a function of popularity. tozabeth: these these go secure the network. scenarioas become a where it is too popular. joe: so your company, lightning labs is working on a project called lightning which would allow for faster payments. explain what it does. elizabeth: lightning is a software layer on top of bitcoin. if you went to send in email, you had to download every coffee that anyone had ever made. we've created a layer on top of bitcoin that can relieve congestion. as a result, you can transact faster. understand, people all of the different notes have to agree on the entire history is there is no centralized database. if we had to do that camino would be very difficult. elizabeth: if we were to have billions of people using bitcoin, every transaction on every note, it would be super inefficient. lightning creates a layer where you do not have to broadcast every transaction. you can transact instantly an instant settlement. joe: within the bitcoin community, there is a those optical debate. twoare talking on a layer solution. others say why not just widen the lanes. we could have art confirmation done on the blockchain. elizabeth: everyone is very passionate on the bitcoin. creating extra lanes, lightning would be like teleporting. joe: it doesn't really exist yet, or does in a very early stage. people ask when will it come? when will we finally have a solution to these high fees? what is the roadmap for landing. elizabeth: we have a dedicated test our software. we have had it out since january, and we have had some very great applications that developers have built on lightning. now you can send high-volume transactions. you can send less than one cent on lightning. debate on is a whether bitcoin is efficient enough to make up of coffee with. are one dollar or $10 or $20, then not. but buying coffee is pretty easy right now with a card, or then motto if you want to split the check. why use cryptocurrency at all to make such mundane purchases? elizabeth: lightning can help with changing -- with trading. you can have instant settlement with exchanges. just last month, we demonstrated the first ever cross swap between bitcoin and light coin. this is a big deal. joe: even if fees come down. everyone knows the story of someone who spent 10,000 bitcoin on pizza. even if fees come down, is there an england nation to actually for paymentsrency rather than just hoarded and hope the price goes up? elizabeth: the way i can convince and -- envision lightning is like a savings account. all of this stuff is pretty difficult for most people to use. simply buying bitcoin is scary for people there is a reason people are paying premiums. now they have to do this all other player in addition to buying bitcoin, they have to learn how to do a lightning wallet. how big of a challenge will that be to get people to adopt this? is very simple. it is integrated into certain wallets we built. it is in the background. it is automated. the user does not have to know. industry lot of support. coin base has a developer. we have seen industry adoption and a lot of excitement around our tech. joe: all right, elizabeth stark. thank you for joining us. elizabeth: thank you so much for having me, joe. scarlet: great interview. julia: you are looking at live pictures of the house. they are looking at a spending bill to pass by tomorrow night. expand until january 19 caret we will bring you results as soon as we haven't heard from new york, this is numbered. ♪ julia: what'd you miss? everywhere from silicon valley to the white house has been harassment. sexual isking about how the #metoo making changes. >> the harvey weinstein started october.arly in about a week, the #metoo campaign had started. there were lots of stories of people i knew and, being a woman and having reported on sexual harassment, i was aware of how prevalent it was. but it is different when you see it in numerical form and then to find someone you grew up with sharing a story of something that happened to them 10 years ago and you never knew. men, itfor women and felt overwhelming for a wild. then it called down for a that of it. now it seems to be in the news every day. jokes likemaking to who is going to be next. sometimes there have been rumors . the louis c.k. stuff was out there. there were whispers about whether or not he was going to be caught up in this and then he was. there is just one after the other after the other. i think what has happened is this is something that women have known about for a very long time, but only now do they have a platform to be able to talk about it openly and in a way that they feel comfortable doing. >> i think a lot of people wonder -- we have had discussions before, is this time different? >> i think so. definitely. i wrote a story last year about sexual harassment and white was so prevalent. what we call in media, the peg. at fox news.ns originally, it was going to be about that, then it turned into everywhere i turned there was similar stories in every single industry. women working at all levels. we wrote something and it got response, but for the most part, companies were not saying we had no idea. it was still sort of status quo. there were a lot of tricks that companies and employers can use to get around allegations and settlements, arbitration clauses , and all of that still exists. now, they are being called out on it. >> what is interesting is you are telling me that there is an evolution on how people think about men how they think about women. as of all the stories that have come out. yet, you talk about hollywood and how if you look at a script, how they write about women characters come it still shows that that has not changed and hollywood, despite what has happened. >> i found this fascinating. before i talk about hollywood, i will say advertising has changed quite a bit. you can turn on the tv and see men in detergent commercials. there is a cute one where a man lawrence to put on makeup so he can play very princess with his daughter. julia: i didn't even know this, 40% of households in the united states have been out red winners. breadwinners. >> or, even if it is both parents work and earn equal amounts of money, not one particular parent is going to be the one doing the laundry. advertising has a good that out. they have to sell their stuff to you. they need you to feel like you have a relationship with this product europe hollywood does not necessarily have that. chances are, it will be a bit more stereotypical. >> you wrote about something in a script and how they described a woman. i thought it was a great example. >> last year, there was a producer who started a twitter account. he is a producer and reads scripts. tweetsted writing his are the descriptions of female characters in movies. he anonymized them all as jane. so that if you are the writer, you are not being called out personally. 47, a stunner even for her age. 13, coming into her womanhood. julia: that's quite benign. >> they are very bizarre. >> but this descriptions are about their looks. >> yes. or about how you as the are supposed to feel about this woman. that is assuming that you the viewer are a man. it is still very common in scripts to write like that. and tv thisdio weekend. now i will show you live pictures of the house floor. they have just asked a temporary spending bill through january 19. let's ring in steven dennis who is on capitol hill. parted -- we have averted an immediate crisis. i'm not sure he can hear me. stephen, are you there? i just told you the news there. we have funding until generate 19. i believe the senate will vote on this as well. scarlet: it is temporary. likely, probably the senate will pass it. .hen we will get to january 19 the key thing people have to understand is that then we have a serious come up very challenging boat. they have been able to punt on the difficult questions. things related to health care spending, the demands that the want.rvative all of these different things are things they are not going away because of this. julia: you also have the democrats here. the dreamers -- is he there? to us then. we have just seen the house asked a temporary funding measure that gets us to january 19. we expect the senate to pass this tonight. talk about what then happens. steve: senator schumer, the democratic leader once a global deal with all of the outstanding issues. , involvingfrom daca nearly one million immigrant children, to a big health care deal that would include children's health insurance, and many other issues including how to fund the appropriations for the rest of the year. that is about $1 trillion. there are a lot of negotiations that have to take place. including, a big deal on the caps. how much more above the caps are they going to spend? that could be as high as a quarter of a trillion dollars. julia: so that wraps it up there then. we shall see. joe: it's going to be an interesting few weeks. julia: the clock is not taking now. scarlet: they kicked the can down the road. is tax reform week. let's take the success where we get. joe: have a great evening. this is bloomberg. ♪ ♪ ♪ a alisa parenti. you're watching bloomberg technology. anothere has passed short-term extension of federal funding to keep the government running for three more weeks. the bill still has to clear the senate before the showdown deadline at the end of the day on friday. the united nations general assembly overwhelmingly backed a measure radical of president recognizecision to jerusalem as the capital of israel. vote came despite of comments.y's on capitol hill, congress wants to use momentum to take on welfare. paul ryan says 2018 is a chance to restructure the safety net. he wants to change good stamps and medicaid programs. in southern california, cap -- firefighters doused hotspots. the huge fire is still smoldering northwest of los angeles. it

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