Vonnie may be the chinese economy is coming back. Maybe the government wants to get their arms around that and make it more transparent and a little easier. Peter the fact that there are more defaults is not by itself bad news. They were suppressed before. You had a lot of Zombie Companies that were being kept alive artificially. Now companies are being allowed to default. The late Carnegie Mellon economist used to say capitalism without failure is like Religion Without sin. David exactly. If you will have a healthy capital market, you have to have a way of people to falling. It is true in new york and london. Maybe it will become true in china and beijing. Peter today the chinese leadership came out with a concept for how to regularize defaults in china so that things are done by the book instead of in an ad hoc kind of under the table sort of way. Vonnie inc. David encouraging news out of china. Thanks so much to peter coy. Now we want to turn to sonali vasek. Talking about banks, we have some numbers bloomberg put together about how many jobs are being lost. Sonali it is about 80,000 worldwide, and 80 of that is in europe. What is more surprising is the healthy u. S. Banks, which are coming off a record your profitability also looking to cut as they expect times to get harder ahead. David in fairness, every time we go through earnings season one of the questions is how are you controlling costs . It looks like there controlling costs. Middle of january when their reporting earnings again. They want to see citigroup, morgan stanley, the ones we know cutting jobs, can they grow the revenue while they are cutting jobs . Growth may slow into a tougher economic environment, which we do not know what will happen. They need to show profitability rising. David the challenge is not getting rid of cost, it is keeping your revenue up. Sonali basak, thank you so much for joining us. We now go to london and we will talk about the brexit negotiations. We thought everything was passed with a resounding victory from boris johnson, but it sounds like he has someone they will negotiate within brussels and they are not so eager to get a deal. He is having a jolly good time in the caribbean. The Eu Commission president seems to think the brexit decision may not happen by the end of 2020. That seems to be the received wisdom. Everyone thinks it will be extremely hard to pull off a trade deal given the president s. These are technical talks and they will take several years. My cap yet at this point would be do not discount the possibility of making it happen given the political urgency. Johnson has every interest in making this happen. Emmanuel macron is leading the eu and has every intention of having it out. These folks may get grind it but lets not mistake this is a very different game. If we think this will be another painful agonizing thing, we should be prepared for the fact that johnson may be willing to pull the u. K. Right out. Vonnie david there is another variable. It depends what kind of deal you want to have. If it will be a minimal deal, which will be closer to a no deal brexit, it is easier to do that than to negotiate each one of those painstaking deals. Flavia absolutely. At the end of the day he will try to protect the Financial Community as much as he can and he will start doing side deals with the americans. It does not need to be a sweeping fda, could be lots of small deals on key interest areas for both parties. Calculushe political going into the negotiation will be quite different. Before hand the eu was thriving. The negotiations dictating and imposing the terms. That is not going to happen this time around. It is a different set of political circumstances. Vonnie and it makes a big david and it makes a big difference when the Prime Minister has boats in his back pocket. Now it is time we get a check on the markets and how theyre reacting to todays top stories. Abigail doolittle is here. Maybe a little reaction but not a lot . Abigial not a lot of reaction. Small moves for the major averages. It seems to be a continuation of the melt up into the end of the year. We have two days next weekend more trading on the day. A banner year for stocks. One story on the day that could be interesting is if the s p 500 can be a little more, it can put the index on pace for its best year since 1997. If the nasdaq could finish higher, it will be the 12 month and the row, the longest bidding the longest winning streak since 2009. David we are in a holiday season. How much do we have to take this below how much do we have to take this with a gain of s alt . Abigial yes. Not a lot of action. The bulls taking advantage of a lot of players in their seat. David people are not taking their money off the table, which you might think they would be doing. Abigial if i were up 30 on the year and a year that was in earnings recession at the wall of worry investors were climbing, i would want to take chips off the table to be prudent. Not seeing much of that. The big tell could be the fourthquarter earnings season that starts in january, the expectation is we will be out of the earnings recession. If that does not happen, that could be an impetus for overbought and overextended conditions to come back down in some sort of consolidation or correction. David two trading days left in the year. Many thanks to abigail doolittle. We turned to Mark Crumpton with first word news. Mark at least a dozen people died and nearly 50 others have been injured after a plane crash shortly after takeoff in southeastern kazakhstan. Local authorities have grounded the rest of the budget carriers fleet. The aircraft was carrying 90 people, including five crewmembers. The philippines has banned dick durbin and Patrick Leahy from entering the country after the two introduced a provision in the 2020 budget that would prevent filipino officials involved in the incarceration of a senator from entering the u. S. Manella also said it will impose visa restrictions on americans entering the country if washington pushes ahead with the sanctions. Russia says it is not willing to expand a you and improved arms embargo on iran. Secretary of state mike pompeo warned allowing renewed weapon sales to iran would mean the country would be unreached to create new global turmoil. The 2015part of nuclear deal with iran. The u. S. Withdrew from that pact last year. A massive storm system barreling its way across the United States is impacting post holiday travelers from california to the great lakes. The storm roared ashore in Southern California on christmas day, unloading torrential rain and los angeles and even triggering a Tornado Warning near santa barbara. Storms will continue throughout the day in the southwest, bringing heavy rain and mountain snow. The vigorous weather system will change northeast over the next three days. 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. Is bloomberg. David . David coming up, year end market melt up and President Trump is taking stock. Get it . What does the strong Market Performance mean for the chances of his reelection . This is balance of power on Bloomberg Television and radio. David so far the equity markets are not up as much today as they were yesterday, but the s p 500 is still trading near alltime highs and up 30 so far this year. That has put more than 5 trillion into stockholders pockets and President Trump is taking notice. Kevin cirilli joins us now from the white house. The president may be down in maralago, but he is paying attention to the markets. While he is in maralago they are cutting the grass behind me at the white house. The president taking a political victory lap in recent days as he has come out to support the Strong Economy as well as the stock market. Take a look at the one of the tweets. He says the nasdaq is up 72 since our election victory. The dow up 55 . The best is yet to comp. He also tweets out holiday sales are up 3. 4 since last year. Congratulations, america. This is a political battle the Reelection Campaign would like to have every single time. Meanwhile democrats are saying the economy has only worked well for those of the top. David thanks to Kevin Cirilli from the white house, where they are cutting the lawn in december. For more on the president and , weeventual opponent welcome our clinical panel. Texas, the, president of potomac strategy group, and from washington, associate professor of media and Public Affairs at George Washington university. Welcome, both of you. Numbers do not live. The numbers we just heard from Kevin Cirilli are compelling. What does any democrat, no matter who is the candidate, going up against President Trump in november, say about that . You acknowledge where we are. We are not here, and i say we as in the public, to focus on everything. We want to make sure we look at a full balance of everything that is happening. The economy is doing extremely well. That is wonderful. As wellresident trump as his cabinet minutes traders the credit they deserve his cabinet administrators the credit they deserve. You acknowledge it and you also have the opportunity to focus on things that are not so stellar. David what sort of things are those . From our current failed immigration policies. You look at the fact we have officially pulled out of the Paris Climate Accord and what that is doing as we moved to 2020. You can look at the fact that currently in our country we are in the midst of a serious number of trade battles, whether it be with nafta or we just wrapped up things with china, which was a win, but on the global stage, there are areas to be concerned. Vonnie lets go over david lets go over to matt and get his response. Is that ground on which President Trump and his team would like to fight this battle . Things like the paris accord and things like trade disputes . Matt i think the president will run on a Strong Economy in 2020 and incumbent president s with a Strong Economy are in a good place to win an election. It is true that President Trumps drop approval numbers have been relatively weak, but he was also able to win election in 2016 with low Approval Ratings in an election where both candidates had images that were upside down for the first time in american history. He will run on a Strong Economy, but it is not just about the stock market. That is about 401k and retirement accounts. It will also be about wages rising. I saw statistics that show the bottom quarter of all americans have wages rising faster this year than the top quarter of all americans. Democrats want to talk about class warfare. Middleclass and workingclass americans are seeing their wages rise for the first time in two decades. That is because of the policies of the tax cut the regulatory rollback. All of those issues. To your question, trade and wellgy issues will play in the midwest which will decide the 2016 election. I would argue those are the only three battleground states. The Paris Climate Accord is not a winning issue in milwaukee as President Trump said when he pulled out. David if you agree with matt that it will come down to wisconsin and michigan and pennsylvania, and if so, it was a narrow victory for President Trump the last time. It does not take a lot of people to change their votes. How would the democrats change the votes they need to . Imani it is a matter of looking at independents. A lot of time independents tend to get left out of the larger conversation. I have to disagree with my colleague. You mentioned people are not concerned about the Paris Climate Accord. That is something that implicates all of us today, and then for generations. We are talking about the rollback this current epa has done with everything from coal to the very strange comments the president made about windmills earlier this week and wind energy. Nd renewable and you had to question does he understand the peril that we are facing as a world . This is a world responsibility. I believe the battleground states that he mentioned are going to be important. I do not think the only ones. I think what happened in 2016s we will only focus on certain places and everyone else do it you will. That is the case where we come together unified as a nation and describe where we want to go. The fact of the matter is i do not believe there has been a longstanding hatred toward the current administration, but we have sat back and watched over three years failed policy after failed policy. The economy is doing well, jobs and wages are growing. Maryland will have a 15 minimum wage engineering first. That is fantastic. I am a maryland resident. And we have a republican governor. I want to be clear about that. We want policies that work for all and offer some. I want to come over to you and talk about the other side of the ticket. The democrats. It is almost the end of the year. Has the position of those candidates changed much . I think we went into the year with joe biden in front and Bernie Sanders in number two. Have the positioned changed much . Matt there has been solid stability among the top four candidates on the democratic side. There is no frontrunner. For a time it look like Elizabeth Warren might be the front nine renter might be the front runner, but her numbers have come down and her fundraising has slowed. I think this is a wideopen race. Democrats allocate delegates proportionally. In the democratic side is proportional. That means unless someone becomes a front runner in the early states and gets consensus and the party behind them, this will go on for a while, certainly until april or maybe even the convention. You have four firstyear candidates come and the former mayor of new york city making an unprecedented effort to sweep up delegates on super tuesday after skipping the first four states. Havenk joe bidens numbers been steady and stable all along. We will see if he can survive iowa and New Hampshire and get all the way to nevada and south carolina, but you have Pete Buttigieg and Elizabeth Warren and Bernie Sanders all fighting it out in iowa and New Hampshire. Perhaps one of the three will stand apart from the others and have a real lead going into the end of the early states and into super tuesday. I think the democratic race is unpredictable right now. There are significant ramifications. Joe biden or Amy Klobuchar or Pete Buttigieg, a mainstream democrat, but warren and sanders are more of a fullscale progressive. That is a different platform depending on the nominee. Things being equal, if there is a long race into may or june or the convention, does that weaken the democratic candidate going up against donald trump in november . Imani not with the top four. I do not believe that will weaken going and. I believe we will see what many people want to see who will be the best candidate to not only beat the incumbent, but and who will look forward unify our country . We are at Division Records we have not seen in half a century. We are at the point where we have so many opposing values and morals. It is not necessarily politics but values and morals and how you deal with immigration and how you deal with social justice issues such as police brutality. Having True Conversations about inequality in this country. Yes, for some people wages are rising, but look at our homeless rates in the United States. We can talk about those in washington, d. C. Alone, which are astronomical. We can see people come together who will be the person who can move us forward. David many thanks to our political panel. A quick reminder. Michael bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. Still ahead, our stock of the hour. Rite aid is climbing 115 since last week. What is fueling the rise. Ons is balance of power Bloomberg Television and radio. David this is balance of power. Our stock of the hour is rite aid. Shares are off a short squeeze. It is up a lot. Abigial is up a lot. This is a fun one. Up about 185 . Put that into perspective. Early last week, this is an eight dollars stop, now is a 21 stock. Bear shortgh interest on it because this company has not been keeping up with some of its competitors. The bears have been wanting to push it down. In the bloomberg terminal you can see what im talking about. Close to 26 rest of the flows. You have to think this big spike we have seen more recently on a decent earnings report. They did put up better numbers but it was super low bar. Investors not expecting that much causing the stock to soar. If youre anvid investor, what you see that might give you hope . Abigail looking back at the new management team, they will outline their new strategy in march. That is a great point. The difference between an investor and a traitor. I do not think you have many investors in the stock yet. You have traders taking advantage of the fact that it is not as bad as it has been. The loss was not as bad as it was expected to be. The guidance is better. We do have a new management team. The longterm investor wants to see something much more structural. They did sell 2000 stores to walgreens. What will they do with the other stores . David selling is one thing and buying is another thing. Some of the rivals have gone into things like health insurance. The question is do they have to buy something or merge with someone . Abigail it would be difficult. The one problem this company has is an enormous amount of debt. They are highly levered. It would make it difficult for them to go out and buy something. They may have to do the best job they can with what they have right now. Clean up the Balance Sheet and maybe that would give them the opportunity. Will they have enough time to do that . It is hard to say. There was a reverse split earlier this year and the highs in 1999. 1000 stop. It may be outright 1000 stock. David abigail doolittle. Thank you so much on rite aid. President trump has used National Security as a weight of a limiting tariffs. We talk with a National Security expert. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. David from new york, this is balance of power on Bloomberg Television and radio. Im david westin. For bloomberg first word news, we turn to Mark Crumpton. Mark more than 330 people were arrested in hong kong over the christmas holiday. Protesters smashed windows while Police Responded with tear gas. Mark Authorities Say those detad include children as young as 12. Nearly 7000 people have been detained since the protests began six months ago. Hong kong is bracing for more disruption into the new year. One of the Largest School districts in the United States has announced a new policy that would allow students one excused absence per school year to participate in civic activities such as protests. Students in seventh through 12th civiccan use the day for aid and engagement activities. The rule is the first of its kind in the u. S. After a landslide primary victory, Benjamin Netanyahu is looking ahead. He will need a big win in in march toctions stay in office. In march to stay in office. His best hope of escaping prosecution uncorrupted charges is to gain a majority in parliament that is willing to grant him immunity. The market vote will be a third in less than a year. Russia has confirmed it will appeal its fouryear olympic than for manipulating doping data. The Russian Agency sent a letter today disagree with the sanctions imposed by the world antidoping agency. The case now heads to an arbitration court. Russian teams are banned from a range of majors competitions over the next four years, including the olympics and 2022 world cup. 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. David President Trump has talked a lot about the economic effects of trade with countries like china. He has also been concerned about the National Security element, particularly when it comes to technology and intellectual property. On how the Trump Administration has change things, we welcome nelson dong. Thank you for joining us. Lets start with the case that most people know about, huawei. Stand right now, to what extent has the administration changed the way that we deal with a huawei . Nelson in some ways, not much at all. Even under previous administrations, there were prosecutions of foreign companies, including chinese companies, for export control violations. There were allegations in an indictment filed in new york here, andlso seattle, those criminal cases are currently pending. Alsocase in seattle has spawned the extradition request for the chief Financial Officer of huawei, who is still under house arrest in vancouver, bc. The normal Legal Process has been running its course as it always does in such cases. Has more to do, from the business community, with something called the entity list. Huawei was placed on that list in may, causing American Companies who are suppliers, who had previously supplied about 11 billion of goods and services to huawei and its subsidiaries around the world, put them off limits. As a consequence, there has been a great deal of activity on the part of the Business ActivityCommunity Going to washington to get relief from that designation list on huawei and roughly 100 of its subsidiaries. A special case, or are there others like huawei that are already on the list are likely to be . Nelson huawei was not the First Company to be targeted. Was also targeted in the same way after documents were leaked within the company showing it had a concerted effort underway within the company to divert American Technology to iran, contrary to u. S. Sanctions laws. Huawei was prosecuted in that case, ultimately settled out of court with a plea bargain and fine. Nt of a very large lin there were changes at the board, officer level, and so on. Some analysts have been predicting a resolution of huawei may involve a similar scenario, at least from the viewpoint of the justice department. That would be an optimal outcome. Of course, huawei has always denied these charges in an , believes that they are trumped up in order to see them as a not legitimate competitor. David we are talking to nelson dong in seattle. Lets change from export controls to investment. We also have socalled sify is restrictions that the treasury can place on investments in the u. S. There has been new legislation that has gone into effect in 2018. Has investment in certain companies, sectors been changed by the Trump Administration . Nelson depending on whose numbers you are reading, from a high in 2017, 2018, Chinese Foreign direct investment in the u. S. Has probably dropped 90 , which is precipitous, and has been influenced both by capital controls inside china itself, but also by tougher Regulatory Regime on this side of the ocean. The United States, through the legislation that you referred to , passed in 2018 by congress, has added far more speed bumps, shall we say, to the process of Foreign Direct Investment that touches what are viewed as National Security or Homeland Security issues. In the legislation that was passed in 2018, new powers were given to the administration to expand the range of controls. So in addition to classical red black sides of the such as holding defense contracts, or havingso in addition sensitive y technology, now we are looking at facilities and may be withinthat a finite geographic zone of military facilities, looking at things that are close to airports, seaports, facilities like that. May be within a finite geographic zone of militaryin addition, the real ee community is beginning to wake up now and realize that everything in the Real Estate Market above singlefamily now liable tolso National Security reviews bought by somebody in china, especially from a stateowned enterprise in china. David you said if bought by. Does it have to be 100 , majorityowned, or can it even be a minority interest . Nelson that was another one of the changes in 2018. Prior law require the investment transfer control. That didnt mean majority control. Oft meant something north 10 , somewhere in between 10 and 50 . Now, even minority stakes in passive investments are still going to be at least subject to some initial review. David thank you so much, nelson, after she and us today. He is a partner at dorsey whitney. Coming up, President Trump warns of russia, syria, and iran killing thousands in northeast syria. We talked to retired Brigadier General mark kimmitt who just returned from the region. This is balance of power on Bloomberg Television and radio. Bloomberg television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. President trump born yesterday syrian and Russian Forces threatening thousands in northeast syria. The Syrian Civil War has plagued many president ial administrations. Back in october, we saw done with former u. S. Ambassador to the United Nations susan rice. I asked her about the obama administrations policy to syria back when the war broke out in 2011. At the end of the day, president obamas judgment was, while he would help the rebels, provide humanitarian assistance, to all the diplomacy we could to end the conflict, we would not intervene militarily to topple a side. He did make the decision to fight isis and other Al Qaeda Affiliated groups in syria. That is the war that has been prosecuted primarily by the Kurdish Forces that President Trump yesterday announced we were abandoning. Urds, for all these years, have been fighting our fight, as well as their fight to eliminate isis, and had done so with our backing rather successfully. , in President Trump said effect, we are abandoning you, we are leaving you to the wolves , the turks, who have every interest in killing them. They view them as terrorists. We got out of the way and gave the turks the clear to slaughter the people that helped us to the isis. It is a terrible betrayal. Isis . Did we defeat President Trump says we dont need to keep our troops there because we have been islamic state, we can pull them out. Is he right . Unfortunately, we have learned this lesson the hard way. We withdrew from iraq under the obama administration, a deal that president bush had cut and we fulfilled. What had been a form of al qaeda came back in isis. We also had to fight the same reformed isis in syria. The lesson is you have to keep pressure on the terrorists. It doesnt necessarily have to be a permanent u. S. Military presence. In fact, because president obama decided to fight isis in syria differently than we had done in afghanistan or iraq before, by using Partner Forces, the kurds, rather than putting u. S. Forces in harms way. We were able to do so relatively economically. We are talking about hundreds of u. S. Troops remain in syria, not tens of thousands. We needed to stay to support and protect the kurds but also keep an eye on isis, so they did not get the sense that they could get the jump on us. David that was my conversation with susan rice just after President Trump announced that he was pulling forces out of syria. Conversation ontuati the situation, we welcome mark kimmitt. He joins us today from washington. Good to have you back with us. Looking at what President Trump said yesterday, about thousands province, isidlib he now reaping those fruits . Mark this is not related at all. This area in syria has always been an issue between the terrorists and opposition groups. It is far away from northeastern syria where this issue with isis and the kurds came about. It really is an apples and oranges situation. Is ais happening in idlib humanitarian disaster against affiliates, and the brutality of Russian Forces is what we are addressing. The president says turkey is trying to prevent this, with what he described as the potential death of thousands. One is turkey doing in the area . What turkey is doing more than anything else is trying to ensure those syrians inside idlib, if pushed out by the Syrian Forces, do not end up in turkey. Turkey is hosting nearly 4 million syrians now, and certainly doesnt need a couple million more that have been pushed out of idlib. A realistic view of the situation on the ground. I would not consider their desire to end the idlib problem as humanitarian come as much as it is economic, and the pressure of the Syrian Refugees inside turkey. David is there anything the u. S. Or others should do on the front of humanitarian aid . Mark the sad part about it, the russians have gone time and again to the Un Security Council and blocked resolution that was looking for support in idlib. The russians are conducting a scorchedearth starvation campaign in idlib, not only preventing convoys from getting in, but bombing indiscriminately. Disaster,manitarian there is little the world can do, frankly, because the russians are blocking every effort to solve this problem at the United Nations. David we are talking with retired Brigadier General mark kimmitt. Retired Brigadier General mark kimmitt. Is this part of a problem that we have not set up to putin enough, reason for him to back down . What leverage do we have right now in the middle east . He has really entrenched himself in syria. Mark enough, reason for him to k candidly on the issue of syria, this would happen with or without the russian involvement. Thatis the last major area Bashar Alassad need to take back to return entire sovereignty of the country to himself. It is the last talk in a resistance of the opposition. Whether the russians or the iranians are helping Bashar Alassad, Bashar Alassad will , andhis fight in idlib will use whatever brutality is necessary to do that. To me. Explain this everything seems to be connected to everything in the middle east. A report in the bloomberg today troops toy is sending tripoli because there are Syrian Rebels now fighting there. Is that correct . That is true, but the real issue is against the russians. Attemptians backed the of taking over government, in opposition of the yuan government that was put in. This is another way for the turks to fight the russians by taking opposite sides. In this case, they are on the right side by backing the yuan government that has been imposed inside libya. We canis there anything do with respect to russian influence in syria at this point, or is it a done deal as a practical matter . Mark candidly, it is a done deal outside of anything to regarding diplomacy. It would take a diplomatic breakthrough between the United States and putin to have his forces pull back. Even if the Syrian Forces pull back, there are still around 30,000 al qaeda affiliates inside idlib. You have to ask the question, what will happen to them . Will they just remain a cancer in the middle of syria, or does more action need to be taken, just more selectively and not with military action that puts you close to war crimes . David historically, iran has been a supporter of assad in syria. What is the relationship with iran and russia relative to syria . Like each other there, there dont work with each other there. Uphold not want to Bashar Alassads sovereignty over the state. They are more concerned about being in the south, aligned with hezbollah, putting pressure in both cases against the iranian arch enemy which is the state of israel. Have the days of humanitarian intervention gone by . Mark certainly the way the former administration sought haf humanitarian intervention gone the duty to protect, the need for humanitarian intervention, the chapter six operations by the United Nations, there are still a significant number of those operations, peacekeeping operations, peace enforcing operations in africa, but these types of operations inside the middle east, as you say, those are days gone by. Reports in the press that the u. S. Is changing their military posture to pull out of western africa, particularly in support of some french forces. Does that make sense . Mark it really does. About the only thing that i agreed with secretary rice in the last segment was getting more Partner Forces to do more work. It should not be the case that the americans need to be the first solution to every problem in the world. In the case with africa, the french with historical links to africa, they are a better force. It doesnt necessarily take the u. S. Forces to do it. We can support with logistics. Better to have french boots on the ground and u. S. Boots on the ground. David are we fighting as effectively against terrorism . That can be islamic state, al qaeda, you name it, as we were in past years . Of the Great Success stories is what has happened inside iraq. With the military assistance provided by the United States, the intelligence, airstrikes, the advisors, this has been a country that america has invested in, the only country that has defeated isis insider territory. We have to look at the model we iraq, take that model where appropriate and use it elsewhere, particularly like afghanistan, and use willing Partner Forces to do the work, rather than american soldiers. Can provide logistics, intelligence, advice, we can provide transportation. But we dont always have to lead with american boots on the ground. David can provide logistics, here,igence, thank you for beig retired Brigadier General mark kimmitt. We will be talking with him about iraq in the second half hour of balance of power on bloomberg radio. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Tomorrow, saturday, the College Football playoffs kickoff. The lsu tigers going against the oklahoma soonerstomorrow, sature football at the peach bowl, while the defending National ChampionClemson Tigers face ohio state in the fiesta bowl. The winners will compete for the National Championship. Millions hundreds of of dollars in tv rights, merchandising, and tickets. Even though clemson has the best record, it is far from being in the money the way that its rivals are. Is evan novyw williams. This is a great piece that you have in the bloomberg. I was shocked. A lot of people would be surprised. Over the past five years, once it has been one of the best football teams in the country, but their profit for football backs behind a lot of these blueblood programs. I think you are seeing it for a number of reasons. They pay their coach more than anybody else, so thats pretty expensive. The other big one, they play in acc, which does not pay as much for media contracts as much as the sec or big ten. David does the acc not get as much in television revenue, or they dont disagree it back to the schools . They dont get as much. Acc schools get 29 million a year is their media cut. Big ten pays 50 million. The sec, when their new deal kicks in the next year, will be even higher than that. Thesetically, all of schools in the acc are behind the ball from a revenue standpoint. David even those numbers you gave me is a 20 million disparity. A much bigger asperity in the money that they make. Example, sales, for ohio state next price as much as clemson. Of the teams in the playoffs, clemson is by far the lowest. David bigger stadium or they sell out more . It is a mix of both. It is not just the size of the stadium but how in demand they are. A lot of these other schools will demand a donation just to get season tickets. It depends on how much demand there is for billing that stadium. David does clemson have the big luxury seats, like they have at my old school in michigan . You can bet that there are premium seats in clemson. If the Team Continues to be this good, you will see that gap narrowed rarely quickly. David fascinating story as we all watch this weekend. Thanks to evan knowle williams. Coming up, balance of power continues on bloomberg radio. We will have more with retired Brigadier General mark kimmitt, talking about iraq, and afghanistan. This is balance of power on Bloomberg Television and radio. [ dramatic music ] this holiday. Ahhhhh ahhhhh a distant friend returns. Elliott. 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