Nt took into difficult territory. Can you give me a History Lesson on Travis Kalanick and what he delivered . Mandeep clearly he was a trailblazer and created this market ridesharing. He was probably too aggressive. Was on the cultural side. He did not care much about the reputation of the company that much. In hindsight, that was his mistake. Even though he was focused on expansion, there were certain reputational things that probably hurt him a lot. Even after the lock up, travis was probably the most in terms of selling the stock. Company hadall the a hard time keeping him on the board and involved in the day today aspects of the company and on the other hand he was telling the stocks so aggressively. Hopefully that is what this management hopes for is to change the shareholder base. Right now when you look at the shareholder base, they have softbank as the largest shareholder followed by benchmark. Chmark typically exists they are not there for the long term. For a large tech company, you look across the board. You want to see pension funds, longterm Investment Funds as your shareholder. That is what uber wants. They want to change in their shareholder base. If thent to see cofounders have 10 of the stock. They want to see that go down over time. If uber was to do well in the long term and given the pressure we have seen on the stock since the lockup explanation, since the ipo, it is imperative they get the longterm shareholders to show their vote of confidence in the company longterm. Uy what are the lessons we can learn from Travis Kalanick, his relationship with uber and his relationship with shareholders. What has this done to change the nature of the weight the founders interact and the companies develop. You look at another softbank company, obviously we work is in the headlines this year. How do you compare and contrast those two companies. Mandeep there are some commonalities for sure. In both cases the cofounders were aggressive. They did not care much about the reputational side of things. The culture was not shareholder friendly. That did not have a good outcome as far as their involvement with the company longterm. The Lesson Learned is on the other hand, a company like google. Ledsee how the cofounders eric schmidt to run the company once the company was past a certain stage to take it to the next level. Then you had another ceo come over on the tech side. Company, as a a tech company, you have to embrace the changes. That applies the same protective cofounder. You cannot be involved with the company daytoday at all of the stages of growth. I think that is the lesson everybody cofounders are good for the initial growth phase. They shouldve handed over the reins to someone who had more experience and focused on the reputation and the trust that people associate with the uber brand. You for much, indeed. Mandeep singh joining us from bloomberg intelligence. ,oining us now is scott wren Wells Fargo Investment Institute senior Global Equity strategist. Thanks for joining us on Christmas Eve. Scott how are you . Guy i am good. How optimistic are you about 2020 . We set our target for yearend 2020 in october. We were expecting the s p to get to 3250 by the end of the year. Your monitor today, we are there right now practically. For us from here you might get a return out of it, but the market , we thought 2019 was going to stocksouch over 3000, so are ahead of their value, based on our analysis. In terms of what will be the drivers next year, what do they look like . This your has been multiple expansion. How about next year . It usually happens later in the cycle. This year, one will determine where the market eventually goes , if you look at retail investors, they have been sitting on way too much cash, generally have been under invested in technology. That really hurt them in 2019. Their equity portion without 30 because they are underweight some of the best performers out there. 2020, it will be how much chasing are we going to see 30 e by these people who are under invested, not just retail investors, but a lot of pros out there sitting on too much cash. They cannot just sit on their hands while the s p is knocking new record highs every other session. Next year will be chasing, it will come down to our leasing stabilization at some of these broader economies, and are we going to get more spending than the consensus expects. We were talking about her and a technology for. What are the lessons we have learned from 2019 in terms of what we should do with our investments . You have got to be in the market. You have to look at the fundamentals, understand that even though Earnings Growth youe in 2019 not very good at all, we will be pretty close to flat on a yearoveryear basis for 2019, what is the market thinking . Is the market more confident, are they going to run up p es . Macro economy that determines what companies will be able to make. As long as the forward outlook is stabilizing to improving, the market will Pay Attention to that. When people look at average pe multiples, you need to look at where you are in the cycle, what a lot of happens when people on the sidelines start inping 2019 not very good at in, becaut does in, because the market does things later in a cycle that maybe doesnt make a lot of sense to a lot of people in, bet does things later in a cycle that maybe doesnt make a lot of sense to a lot of people, but time and again in repeat itself. That is probably what we are in the early stages of now. Guy if you were going to put money to work, what areas would you put it to work in . Scott even though we took some risk of the table, we are leaning toward technology, leaning toward financials, Consumer Discretionary sectors. What we dont want our clients doing is getting overly defensive here, loading up on utilities and staples, which are super expensive. They pay nice dividends, but we want to have that cyclical lean on. Tech and financials have been two of the three of performers this year. That should not be a big surprise. Consumer discretionary finished a little bit behind the s p 500 but it is hard to count out the consumer. Dont think the highs in the market are over although we are a little bit ahead of fair value right now. Guy we will continue the conversation. Scott ran, wells fargo senior equity strategist, joining us in st. Louis. Lets get a check on first word news. Mark boeing has disclosed new internal messages related to the 737 max program. The airline turned over the documents to regulators on monday, the same day he removed ceo dennis muilenburg. Time boeing second has delayed turning over Sensitive Information about the jetline. Episode led to tension between the faa and the playmaker. The pentagon is weighing proposals for the reduction of forces in west africa. Defense secretary mark esper may even consider a complete withdrawal from the region. It is said to be the defense departments first phase of global deployment reviews that could shuffle thousands of troops around the world. Philip today was discharged from a london hospital, quickly taken by helicopter to join other senior royals in time for the traditional christmas. Buckingham palace did not reveal details about his treatment but only said he was admitted for a preexisting condition. Leaders from china, japan, and south korea today held a trilateral summit today. The three reiterated their commitment to ending north koreas missile programs. Free trade and Economic Cooperation were also on the agenda. Japanese Prime Minister shinzo urged the host country to ensure that the South China Sea is an area of peace. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Thank you. It is 11 minutes past 11 00 p. M. In hong kong. Picturesooking at live from hong kong. Shopping area, where the hotels are. We have seen teargas being fired, a series of events over the past few nights where we have seen clashes. Looks like we are warming up for another one. We will keep you updated as the evening progresses. Very late in hong kong, but as you can see, quite a lot of activity. This is bloomberg. Oomberg. Guy from london, im guy johnson, this is bloomberg markets. Lets get an update on the markets with abigail doolittle. Abigail take a look at the moves we have in the u. S. Opening slightly higher but the major averages right now down fractionally. Europe closed with small moves, too. 0. 01 . Up a lot of traders and investors seem to be out. Oil. Ghtly bigger move on popping on the possibility that u. S. Stockpiles are shrinking. We could see some of the energy oil. Names rising with that view. Bigger moves in the commodity complex, looking at gold and silver. Gold up last five days, 1. 4 . Silver gaining more than 4 in that same time period. 11 of the last trading days for silver. Investors really moving into poor mans gold, as it is sometimes called. Finally, some of the users in the u. S. , the top stocks from a percentage standpoint, amd up more than 130 , heading for its best year since 2015. Today up 2 , as argosy boost their price target to a street high of 53. The firm saying the improving Data Center Demand is continuing. Other names being upgraded relative to price targets, carnaval and choice hotels. Some movement on this otherwise very slow day. Guy thank you, abigail. Lets get a view of where we go next with scott wren, wells fargo equity strategist. Lets talk about the United States versus the rest of the world. Does the u. S. Outperformed the rest of the world next year, or vice versa . Scott it certainly did this year. We are keeping a close eye on emerging markets, we are neutral there. If you look at the purchasing managers indices, and we try to make some projections on those, they have improved dramatically. Consumers are doing very well. Of course, it is the trade related sectors that have been hammered. We are keeping an eye on the emerging world. That is a spot that i think we will have some interest in as the year progresses. Europe is a different story. , you look at world some charts on pmis in europe, projections that we are doing on these. We are not seeing a lot of improvement. The emerging world is what we are interested in. Right now, we are trying to pick spot. Try looks like the phase one deal came a little bit earlier than we expected. I think it will still be fairly narrow when we see it on spot. Paper, but the market did not require a lot. The u. S. Looks right now to be our number one pick but we are keeping a close eye on the msci emerging markets index as well. Guy what are earnings going to do next year . Scott the consensus is looking for about 10 earnings. Based on our work, that looks a little high. We are in the 5 to 6 range. Where we could be wrong, where there is risk to the outside upside is this confidence from a phase one trade deal, fewer translates into business confidence, and we see some capex spending. We have a 1. 6 in gdp number out there. If we get some reasonable Capital Spending and the baton is passed over from consumers to businesses, maybe our expectations for the market is a little bit too low. I think it will come down to business confidence, well the baton be passed to businesses on capex. Risk to the upside to our conservative outlook for 2020. Guy enjoy the holidays, scott. We appreciate it. Still ahead, the clock may be running out on ticktock. Considering the possible sale of this popular app. We will discuss the latest. This is bloomberg. Guy from london, im guy johnson. This is bloomberg markets. Chinas bytedance is considering apple of its Popular Video tiktok, as the u. S. Government says the app poses a security threat. Ed joins us now from san francisco. Why isthis a problem, bytedance in a situation where they may have to offload the acid or at least a partial sale of the asset . To bytedancerence is that they sell a majority stake to investors. The other option is to divest to another player in the media industry. Bytedances preference is to maintain control over tiktok. That is what sources are telling us, if they did that, they could sell a majority stake to another investor. Also raise some cash up to 10 billion. It is not the only option. There are other things that are other consideration, including mounting a legal challenge, saying the u. S. Has no jurisdiction here. Tiktok, itnce but was one Chinese Company buying another Chinese Company. They did not even apply for city is approval. The third option that sources are telling us about is simply to separate the u. S. Side of the tiktok business operationally, those are the but three options on the table. The preference of course would be for none of them, but if they had to, the most likely scenario would be to sell to a financial investor, rather than so tiktok in its entirety to another player in the media industry. Guy why do they have to do any of this, whats the problem . Ed the umbrella argument is that tiktok poses a security threat. It has around 120 million downloads in the u. S. That is a lot of u. S. Data. The fear is it would subject cy issues,to privat that china would somehow be able to infiltrate the app and would be subject to influence from the Chinese Government. Tiktok made a statement in october saying they were not subject to the influence of the Chinese Government but simply operate as a u. S. Company an independent company. A few weeks ago, Marsha Blackburn was saying that tiktok is chinas best attempted, sending data back to beijing. Marco rubio has called it a tool of the communist party. That is the concern, that it is a data breach. A few weeks ago, marsha there have been other issues. A previous policy for tiktok was allowing anyone 13 or older to app purchases, and members of the senate took issue with that. Tiktok eventually raised its age to 18 to make purchases, but that is the main argument. Itre are so many u. S. Users, is able mobility and security issue in the u. S. Guy what is the Business Outlook for these businesses now , bytedance, tiktok . Ed bytedance has a lofty 75 million valuation. Tiktok is a major contributor to that. Sources say if they were to sell just half of tiktok, it could raise 10 million in cash. U. S. Accounts for Something Like less than 20 of total downloads. And yet, downloads vasily outshine instagram and snapchat in the u. S. We reported in october that bytedance was perhaps preparing potential ipo, a sale in the stake of tiktok may delay the process because it would raise significant funds give bytedance breathing space to pursue other options in the meantime. Guy thank you so much. Give bytedance breathingup next, we will be tag about tim clark. He is planning to step down at emirates. He has had a major impact not only on the aviation world, but also on the Business World as well. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. From london, i am guy johnson and this is bloomberg markets. Let us check in on the first word news. Detention centers in california are big business. The Trump Administration awarded billions in contracts to private companies. Those came two weeks ahead of the states move to ban contracts for forprofit prisons. Federal Authorities Say it will not apply to existing centers. Joe bidens president ial bid got a boost from a leading latino voice in congress. Told the press that prided is the best hope for biden is the best hope for defeating president trump. He chaired the political arm of the latino congress. He calls the next election a matter of life and death. A setback for his for the Prime Minister of india. The results of an election were announced last night. His party air are facing widespread government protests. Critics say it is part of an effort by his backers to marginalize the 200 million muslims. There is concern that north korea could be planning a rocket or Missile Launch after satellite imagery of a military installation showed new construction. Pyongyang is seeking concessions installed nuclear talks. It warned of a Christmas Gift in the u. S. Depending on what action washington takes. 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. I am mark crumpton, this is bloomberg. Back to you. Guy thank you. Said tot tim clark is retire after 16 years in the role. Under his leadership, dubai has become a hub connecting asia, europe, and the United States to the middle east. We are joined on the phone by George Fordyce and. George ferguson. Tim took over, and how did he transform the airline . He builtote george a major super connector between europe, and asia, and then in recent years, pulling in u. S. Cities. He built a huge fleet of the releas de bodies, really stretching beyond what we would call business into dubai ondoming the head of business. Connecting europe, and asia. Effect thats of the he had on the aviation industry, it is hard to look at any of the major programs that have come out of boeing and airbus. Had it is hard to look at them without seeing the impact that tim has had on it. Neoversion, and upgraded option and never got it. He had a huge impact on the triple seven on the 777 program. Hard . Push too george i think he pushed them hard for the product that emirates needed. That is what you need to do when you are the chief of than airline. It was also a testament to how important, and powerful his airline ha