With strict conditions will be allowed to compete under a neutral flag. Russia has 21 days to appeal the decision. Former fed chairman paul paul volcker is dead. He broke the back of u. S. Inflation during the 80s. Later, he led president obamas efforts to rein in the investment risk of commercial banks. That led to the volcker rule which the banks hated. Paul volcker was 92 years old. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie and at 6 00 p. M. In hong kong. 0 a. M. In im a vonnie quinn. Welcome to bloomberg markets. From bloomberg world headquarters, here the top stories from around the world that we are following. We are on the cusp of a busy week with a lot of potential catalysts from the fomc meeting to the looming americachina tariff deadline. Plus, the u. S. Winter flu season is off to its earliest start in more than 15 years. We will tell you how fact how vaccine experts are preparing. Brownbrown of bobby cosmetics will join on her latest venture. We also have lots out of washington, d. C. Kailey leinz is with us. Halfway into the trading day. Really range bound. Kaylee we are firmly in the red with the s p 500 and nasdaq. The dow is in the red by. 25 . It is on lighter volume than usual. Investors holding back on making any big thats ahead of a risk full of risk factors including decisions as well as a looming tariff deadline over the weekend. If the s p ends lower, it would be the first day that it is down. Up 1 9 10 of 1 for december. If we take a look at how december has stacked up historically, last december was a very ugly when leaving a bad taste in investors mouth. When you look at what history tells us, it may suggest we have more upside to go into the end of this year. Returns have been declining. The exception to the rule is a an is in years prior. Every year since 1970 prior to an election, the returns of 3. 4 . That could suggest we have gains to make through the end of the month. As for stocks not gaining, look at Computer Hardware Companies which are lower today. That is after a report that china is getting rid of approximately 20 million foreignmade computers and government offices in the next three years and replacing them with domestic ones. 5 . R by apple and Western Digital falling by nearly 2 . That is where a group of stocks are going up, departments store is higher. Nordstrom higher by 4 . Kohls and macys up 3 . This after data showed that a traffic is up by 1 10 of 1 in the last four weeks. That is good for these Shopping Center based socks stocks. Vonnie kailey leinz, thank you for the market update. We are seeing headlines from the doj and Inspector General report. The horowitz report. It is on no bias or spying against the Trump Campaign. Majors the fbi made a mistakes surveying carter page. This is the longawaited horowitz report, michael horowitz. The report has been released. It is the report on fbi surveillance around the 2016 president ial election. Once again, it is talking about major mistakes in the carter page surveillance, but also saying the fbi probe into Trump Associates was justified. And the watchdog is urging a review of all officials working on the page case. We will have more on the details in a few moments. With u. S. Stocks edging lower, we are joined for Market Analysis by head of global equities, whose firm manages 1 trillion. How important is this week for where you position yourselves from next week onwards . A lot of information coming out this week. We think the key issue right now is that markets have priced in a lot of the optimism. Yes, there has been good news recently, fantastic employment report, Economic Data stabilizing. We are negotiating tariffs. 2019 has been about valuations driving markets higher. What we think will drive markets in 2020 is Earnings Growth. With that coming in at the midsingle digits next year, we think market returns will be lower Going Forward and we see a lot of volatility with inflation data coming out. Tariff, fed, and the deadline of december 15. Vonnie by the end of the weekend, we may be able to go back and focus on fundamentals. Is that too much to say . Saira i think that is the key Going Forward. Fundamentals are going to drive the markets higher. There is noise around the information coming out this week. What we are watching closely as the consumer which has been driving this bull market for many years, also inflation issues. We have seen average Hourly Earnings at the highest levels in a decade. All of that is key to watch and making sure the Earnings Growth stays intact in 2020 because we cant count on market valuations continuing to expand like they have this year. Vonnie where would you be looking to move money or to rotate out of . Cyclicals, they continue to lead the markets for probably the next quarter or two. If we dont get fast accelerating economic and Earnings Growth, we think the markets will shift to quality growth which is what we have seen for a long time. Also look outside of the u. S. We dont think the u. S. Returns will dominate next year. We think stronger Global Growth will help nonus markets start to perform at or than the u. S. Vonnie obviously, your equities, cio of global equities, but you must be keeping and i on bond yields even for no other reason then to see whether they are outpacing the yielding stocks. Saira i mean, the bond yields the yield curve has been telling us a lot of information it recently. It is mixed. We have seen it invert which is negative for the markets. We are more worried about this inflation data causing the yields curve to not invert and maybe because inflation and potentially not 2020 20, but the fed to think about potentially increasing rates of inflation if inflation bubbles up like we are seeing signs of. Vonnie vonnie you mentioned there will be synchronous Global Growth. Are you looking at any particular area geographically speaking in terms of something attractive . Saira yes. In germany, bottoming Economic Data. We think european cyclicals can actually continue to perform well. We are relatively positive on china now for the near term if tariff negotiations continue to go well. Longerterm, we like brazil, strong reform story there and india where we think there could be rate cuts and earning revisions are starting to look more positive. That is a longerterm story. India tends to be a more defensive play because it is not as dependent on the rest of the world as other emerging markets. Vonnie fascinating. Thank you for joining us. Saira malik, cio and head of global equities. For more on those headlines, regarding the doj report on the fbi surveillance around the 2016 election, we have Josh Wingrove joining us. White house reporter. If you headlines are quite surprising, explain to us how these came out and what was surprising to you. Josh this report has something for everyone. If you felt in the impeachment process but it feels like democrats and republicans are talking about different sets of facts and things, we will see more of that probably with this report. The headline finding will be celebrated by democrats. It shows the fbi was justified in opening the investigation as to whether russia colluded with the Trump Campaign were figures in the campaign to impact the 2016 election. Trump has denied this repeatedly and it is now they are black and white. The report also says there was 17 significant omissions or errors made in applications related to surveillance of carter page, a trump aide. That is being seized on by the trump administration. We have william barr rejecting already this report saying those errors are the fire under the smoke that the president needs to see. This longawaited report, doesnt mean the end of the trump worlds pursuit that they believe something happened here. We will probably see democrats sees on the first part i mentioned, the fbi was justified in doing what it did. While republicans will seize on the second part, saying there were errors. Vonnie thank you for that. The horowitz report out and we can dissect it throughout the afternoon. That is Josh Wingrove and washington, d. C. We are going to come back in a moment. And speak withbo speak with bobbi brown. This is bloomberg. Is bloomberg markets. Im vonnie quinn. The changing face of beauty. Bobbi brown has medics has been a household name since the mid1990s paid 30 years later, it is tackling beauty from the inside. Launching a wellness line and sharing her philosophy, hosting a master class. You see pictures of some of those master classes right there. Having just watched them, im pleased to welcome bobbi brown into the studio. Welcome. You have had a phenomenal career. You have already launched and walked away from a multihundred Million Dollar business. What is evolution 18 and why now . Bobbi evolution 18 is a wellness brand that are supplements that women can take so you can get beauty from the inside out, which is what i believe in as well as what you put on your face. What you putting your body makes a big difference. Vonnie what are in the supplements . There are huge controversies now about various different supplements and fads. And you have to ask, why do you need something beyond minerals . Bobbi they are supplements. I am now a health coach. What i learned, the better you eat, these are supplements. They supplement your diet. There is collagen and they are way protein powders, things that make you feel better that taste good and it helps your skin, your nails, hair. It just makes you more beautiful. Vonnie mistakes that most founders make. You have probably come through a lot of. What did you learn from bobbi brown has medics that you will bring with you through evolution 18 and will improve evolution 18 . Bobbi that is a great question. No one has ever asked me that before. What i learned, building a brand, i understand what my customer wants. I understand what women need and men too. Everybody wants the same thing, they want to look good, feel better. Vonnie what are their primary goals of these evolution 18 products . Is it antiaging, is adjust to have a glow, are there various ones . Bobbi im not someone that believes in antiaging. I think that word should be dropped. Having glow he skin, you can get that with makeup, you can have it high have it by healthy you are. Teach people not just to take supplements, to be better, but to change her diet and your habit and your lifestyle. Vonnie obviously, smaller brands have been eat have been being eaten up by larger browns brands. One is like kylie jenner acquisition, more than 1 billion. Are you surprised at how the industry has taken off . . Or did you expect this to happen 20 years ago . Bobbi im not surprised. I think right now the industry is interesting. There is a lot of opportunity for people to create something that is different. The whole idea is not to do what everyone else is doing. I think these young entrepreneurs that have hit the mark, kylie being one of them, is interesting. Vonnie also what is interesting is the trend seems to have been, for a long time, toward more. More colors, more makeup, extra, thicker, deeper. You are the opposite of that. Do you think at some point, people will be done with this instagram culture of caking makeup on and go for something more subtle . Bobbi i think the world is a big place and there are women that want that instagram look and there are women that dont. The women that want to look like a better version of themselves, there is a big audience for that. When i was shooting master class, i got really lucky and really deep showing people how this is of the simple things make a difference. How to choose the right foundation, those are the things people want to learn. Vonnie also one that resonated with me as you dont have to have everything down but if you have a nice nail bobbi yes, you got that. Vonnie thats all you need. Bobbi you have Everything Else done just fine. Vonnie the team here is wonderful. What is your goal for evolution 18 . Bobbi my ultimate goal for evolution 18, it is a baby, is to grow it and just be the most authentic great brand out there. Vonnie where do the supplements get made . How could we get some . Bobbi they are made in the u. S. And you can get them at evolution18. Com, walmart, kohls. Vonnie congratulation on your new venture. Hope you come back and visit us further down the road. Bobbi thank you very much. Vonnie that is a legendary bobbi brown, the founder of bobbi brown cosmetics. Still had a come of the flu goes beyond the fever and runny nose. It is costing billions of dollars of every in every year paired what you need to know about this years influenzas virus. We discussed next. This is bloomberg. Vonnie this is balance of power. Bloomberg markets. Im vonnie quinn. In the united kingdom, polls show Boris Johnsons conservatives are likely to win a majority in thursdays election. No one is rolling out the leader of the opposition labor party, jeremy corbyn. He is 70 years old and one of the oldest firsttime prime ministers. He wants to bring a number of industries under public control, among them, rail, water, Energy Production and mail. They would raise the minimum wage and spend more of the National Health service according to labour. He wants to attack multinationals, workforce and operations in the u. K. Workers would get up to 10 ownership in their companies. And, corbyn proposes a windfall tax on Oil Companies to be used to fight climate change. Thanks are a target too. They are calling for policies designed to curb their power and redistribute wealth. The tax would be expanded and bankers bonuses would be restricted. That is your bloomberg quicktake. It is time that time of the year, flu season. This year, almost more than other years, the disease is worth taking seriously. The flu is taking a stronghold in the southern u. S. And showing up in different strains and art that are not usually seen. Joining us with more is codirector of the Johns Hopkins center of Influenza Research and surveillance. And director of the center for emerging viruses and Infectious Diseases at the Johns HopkinsBloomberg School of Public Health. Thank you for joining us. Why is this years influenza so dangerous . There are two things that are happening right now that cause us to be concerned. Number one, the number of flu cases that we are detecting is higher than we would expect to see at this point in time and any average year. In the strains causing the flu are ones we normally not see until the end of the flu season. Those two things are causing us to be wary about what is happening and what the beginning of the suit of the flu season will be like. Vonnie if we look back at the 20172018 flu season, there were 61,000 total deaths and 810,000 hospitalizations. It is not something to take lightly lately. There are humongous consequences to not getting vaccinated. Do vaccinations work . Are they enough . Dr. Pekosz vaccinations do work. The flu vaccine we use right now is not the greatest. But it can provide on good years up to 60 protection from influenza. Importantly, it also provides significant protection from hospitalization and from death from influenza. It is those extremes we are worried about in terms of our annual flu epidemics. I think flu oftentimes is not considered as serious of a disease because we hear about it all the time, we hear about it and annual epidemics. The numbers you quoted should bring home to people how serious it is. Vonnie and vaccinations have prevented an estimated 6. 2 million influenza illnesses last year. That is the positive side. Why are we seeing such an outbreak so early and so strong this year . Dr. Pekosz it is a little bit difficult for us to know why. But it is not uncommon for us to see influenza peak at different parts of the country at different times of the year. We tend to think about flu as one sort of simple homogeneous disease. Four different viruses can cause influenza. Youre vaccine consists of all viruses. Hose if you look at the maps in any year, you can see that influenza peaks at different parts of the country at different times of the year. A is a disease that really is very surprising thing in terms of what strains appear and where in the country it can appear as well as in how severely epidemics can be. Something we dont understand that well. Vonnie it is fascinating that the symptoms of the disease and so Much Research needs to be done. Tell us why we should disbelieve people who say dont get the influenza vaccine, it will give you the flu. Dr. Pekosz the vast majority of people who get the influenza vaccine get the influenza shot which is an index and into the arm. That vaccine is made up of killed virus and that virus is taken and ripped in half, and the other half is put into part of your body, that the influenza virus never sees during its normal infection. There really is no chance that you can catch influenza from the vaccine. You can have the modest side effects of the influenza vaccine which is redness of the site of injection, people complain they cant lift their arm up all the way without pain. But those are good signs. Those are signs that the vaccine working, that your immune responses kicking in and you are generating that protective immunity that you need to fight off influenza during the flu season. Vonnie the other reason is the greater good. Healthy,cide if we are we dont need the virus because we could be carriers and they are unhealthy among us that would be affected by that. Dr. Pekosz absolutely. The groups that suffer the most from influenza are the very young, those above the age of 65, and people that have medical conditions such as asthma or Heart Disease or diabetes or obesity. It is those same