mark: senator franken issued a statement which reads in part "i respect women, i don't respect men who don't. the fact that my actions have given people a good reason to doubt that makes me feel ashamed." firmw-based cybersecurity is releasing new details about how it's software uploaded classified u.s. documents several years ago. it's raised questions over whether the companies popular antivirus really works as described. confirmed, said that it was accidental and the files were quickly deleted. the head of russia's anti-doping agency told reporters today his --anization has reformed to conformed to world doping agency standards and is now "completely independent." the comments came as the world anti-doping agency refused to reinstate the anti-doping program. the agency demands that russia publicly accepts results including that the company ran a state-sponsored doping program. russia to allow access to urine samples that were collected. it could and russia's hopes of competing at next year's winter olympics. 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 julie chatterley. scarlet: i'm scarlet fu. >> i'm lisa abramowicz. julia: we are 30 minutes from the close of trading. the biggestng for gain in two months, unwinding losses earlier this week and we have some progress on the tax overhaul. the question is what'd you miss. takeet: house republicans a victory lap after the chamber passes its version of the tax reform bill. the focus now shifts to the senate, were they struggle to reach consensus on details on the proposal. lisa: tax reform could have a domino effect on real estate. marianne gilmore says eliminating the stay and local tax deduction could have a significant impact. lisa: tesla goes heavy-duty. elon musk is set to unveil the electric carmakers semitruck in a couple of hours. we will tie you what to expect. -- we will tell you what to expect. julia: house republicans run their version of tax overhaul by rateing the corporate tax -- slashing the corporate tax rate and adding an estimated $1.4 trillion to the federal deficit over the next decade. here with more details is sahil kapur on capitol hill. thank you for joining us. one step down, plenty more to go. theerate exactly differences between what we have today and what's still to come in the senate. >> a very important step taken by the house republicans to pass the bill. 227-205, it wasn't even close. they had a margin to spare. only 13 republicans voted against the bill, along with every democrat. there was no bipartisan support on this. 12 out of those 13 republicans were from new york, new jersey, or california, the states that would be hammered most. the plan doubles the standard deduction or middle-class family, proposes a corporate tax rate of 20%, and includes reproductions across the board while eliminating a lot of other deductions including medical expenses, and tax breaks or education. a few big differences with the senate version, which is still making its way through the committee this week, including today. one of the big differences is that it eliminates the reduction in its entirety, unlike the house version which has a $10,000 cap or deducting property taxes. it also does not monkey around with the mortgage interest reduction, it keeps it as it is. half tobill president 500,000 for new homes that are purchased. those are some of the significant differences. senate republicans have a narrower margin. house republicans can lose 22 in the final version. lisa: a lot of people have been paying less attention to the house bill because the senate bill is thought to be more important and a likely iteration of what will be passed. is it important to part through? >> it's an important step that the house took, the fact that it did it decisively as to the effort. the widespread expectation is the final bill will look more closely like anything that can pass through the senate. hopefully because of the margins, they don't have a lot of room forclosely error. is something passes out of the senate, it will be narrowly. it may not have any additional votes to spare. any changes of the house could upset that balance. it's absolutely true, all eyes are on the senate side. a similar thing happened with the health care vote and is the attempt to repeal and replace obamacare earlier this year. it passed the house and died in the senate. it remains to be seen whether the senate can pass it. republicaning from senators about provisions in the bill, including senator ron johnson on the pass-through tax breaks. he thinks it will dennis manage -- disadvantage large corporations. they have a long way to go. julia: one senator already out. scarlet: you only can spare another one. bloomberg national political reporter on capitol hill. let's get more insight into the passage of this house gop built with a democratic, is meant -- congressman. thank you so much for taking the time to speak with us. i know you have been tweeting about this, calling it tax scam, it's clear where your intentions late. the house bill is kind of a draft, it will have to be reconciled with the senate version. the senate version doesn't have a lot of room to spare because they can only afford to lose two votes. of a tax ways do you believe we are going to see versus a tax cut? >> we are more likely to see a tax cut. we haven't seen tax reform at this point in time. it is interesting when you talk about the senate, the senate voted on the house bill. unlike the house, where the republicans voted for it. this house bill in the senate 26-0 notommittee lost a single republican senator voted for the house bill. they may have had a victory a loss to that was the american people in my opinion. in point tax cut bill, of fact, it raises taxes on 36 million middle income families in this country. by $1.5des the deficit trillion and the people who will pay it off are our children. a good bill, it lost 26-0 in the senate. i hope it fails, if we do tax reform, we should do it in a bipartisan fashion, which is what we did in 1986. we should have hearings, witnesses, the american public should have an opportunity to come in and say how it will affect them. this is not a good bill for america, our citizens. when you give 50% of the benefits, a lot of talk about helping middle-income people. if you took $1.5 trillion and table, if you want to help middle-income americans, you give most of that money to middle income americans. that's not what happens. lisa: it sounds like you like the idea of giving a tax break to middle income americans. given that approach, is there anything that you like about the bill? >> the house bill is a hotspot -- a hodgepodge cobble together -- cobbled together efforts, which primarily is focused on tax cuts for the wealthiest in america. i don't begrudge people being rich, i think most of us want to be rich. the issue is if you are going to take one point actually dollars and distribute that, which i think we can't afford as a country, if you can do that, you should give it to the people you say you want to benefit, not the wealthiest in the country. very frankly, analyst after analyst says this bill will not pay for itself, it will explode the debt, and future generations will be put deeply in the whole. -- the hole. julia: the republicans are viewing this as a need, they must do it to secure the midterms and keep the house and the senate. you said you think the republicans will actually lose the house when it comes to the midterms. do you see their point? why do you think this could lead to the house? >> i think this bill was passed not for policy reasons, not because it was good tax policy or good reform policy, it was passed because the republicans believe that if they don't pass this tax bill, they will lose the next election. passing this tax bill will also lead to their losing the next election. this is a bad bill, it's bad for the middle class, that for the country, for our children. hopefully it will be defeated. this was not passed on policy grounds. we could have done a bipartisan bill, we could have addressed the disparity in terms of the corporate rate with the rest of the world. we could have brought that rate down. president obama suggested three years ago bringing that rate down. we could have adjusted other taxes for the middle class, for working people, spur job creation, but that's not what we did. not only did we not do that, we did it and a rust fashion, because in my opinion, the republicans understand that this will not bear analysis. honest people who look at this bill have said it will not grow the economy, it will explode the debt, and middle-class people in many instances will get a tax hike. scarlet: there's a lot of criticism that the democratic party needs a refresh, that you and nancy pelosi, some of the veterans should retire to make room for new blood. we have seen a lot of republicans retire, or say that they will retire, how do you respond to that? oni think the young guard the republican side passed a very bad bill. the issue is not age, it's policy, how do you help people in america grow jobs and make it in america and get a better deal? that's what we think we offer, we will continue to offer that. we think that will prevail. much.thank you so coming up, we will bring you an exclusive conversation with foreign city rattner's ceo marianne gilmartin, her thoughts on how the tax bill may impact real estate. this is bloomberg. ♪ ♪ the intersections of politics, business, and real estate was a big topic at the conference of capital markets and real estate. that's where jason kelly caught up with marian gilmartin for an exclusive interview. he began by asking about the possible impacts of the tax bill on real estate. we are watching it closely, because i think there is a significant impact to our industry. it helps our city, and any transactions we are considering are actually passed in the bill. there's to believe enough difficulty imagining there being a census. i have elected not to worry too much about it. i talk about external events, things that have the ability to shift to help our city and economy. i would submit that the measure really does have the ability to pneumatically impact people. even though people say it's intended to do -- put people in ihigher earning bracket, think it's the middle class we are all trying to protect and preserve and support that is to be hit hardest. those individuals are going to have a different deduction if they buy a $1 million home. there are not going to be a but to deduct their local and state taxes. individualsrce the to consider moving elsewhere, doing business elsewhere, and raising families elsewhere. i'm concerned about it, it provides hope for a problem. the rest of the country probably isn't provided. i think it's much a measure that it is a gateway city. the areas that have an holding up the national economy for a very long time. >> talk about new york city as it relates to rent. what could supply and demand balance from your perspective? thissidentially speaking, notion of new construction that spans a range of affordable rubble has had difficult time. one of the biggest challenges, new york wants to keep it up. you have to figure out to live. notwithstanding that, anything more than a 5% is problematic. anything less is considered an emergency. [indiscernible] in my mind, you have a lot of supply. if you change your right, it's not as if you have this abundant demand of supply. manhattan, you see housing.hey are great willncern is that they have condos priced too high. brooklyn, [indiscernible] certain areas have a lot more room to sustain growth. multifamily would be fine. on the office market, i think it continues. it's very important to the office market and the housing market. people need jobs to rent apartments. if the office market is sustained, i think we are at a bout 10% rate. that's not a terrible place to be. scarlet: that was bloomberg's new york city chief speaking with marian kelly -- marian gilmartin. julia: a white house press briefing, sarah huckabee sanders currently talking. this is the first time we have heard from the press secretary since donald trump returned from his asia trip. -- is it undercut of success she is calling get an incredible success. the senate seat up for election in december. the allegations made by several women against roy moore. sarah huckabee sanders saying donald trump thinks the allegations are troubling and the alabama voters should make a decision. that suggests the election will go ahead with him. it's on life go if you want to continue to watch this. lisa: it's time for stock of the hour. today's big stock story is walmart. shares are soaring, on pace for the best since 2008. this, after a strong quarter. joining us is abigail doolittle. what exactly are investors so enthusiastic about? abigail: it's pretty amazing that we have walmart soaring. it's not a stock that i think of soaring. today on for its best day since 2008, we are looking at a b and raise quarter. they beat both top and bottom. bloomberg --to the if we hopped into the bloomberg, they are the highest level since 2012. a lot of people are talking about it as the highest level since before the recession. that's an impressive recovery. they do have a bit of a turnaround where they are trying to improve the shopping experience. online, it was a big piece of business for them. it grew 54% on the quarter. every retail corridor that we hear about, all we care about is the fact that amazon is hurting these retailers. here we see it is not being hurt by amazon. this chart is interesting because amazon's sales are actually dwarfed by walmart on an 80 basis. -- a fractionbout of walmart at more than 1.5 trillion dollars in revenue, where the market cap for amazon more than half a trillion and amazon very small. julia: the blue is amazon. the white is walmart. lisa: there could be price appreciation ahead for walmart. scarlet: thank you so much, abigail. coming up, that s&p 500 continues to move higher with little evidence of significant pullback. a closer look at this record-breaking streak. from new york, this is bloomberg. ♪ ♪ scarlet: i'm scarlet fu. what'd you miss. we have seen a stumble in u.s. stocks. let's look at the recent death into perspective. the s&p 500 is now on the 260 day. the blue line is the s&p 500. the white bars how many it goes with out moving 5% lower. the last time we went this long was back in 1986. the one to watch is the mid-60's. that was a huge number, more than 350 days, almost 400. we got solid fundamentals. that's what everybody keeps pointing to. lisa: solid fundamentals perhaps. what i'm looking at is divergence with a lot of investors going up in quality. the are pouring money into higher rates and bonds. they are withdrawing -- from junk debt. the aligned flows. of junk line flowed out bond etf's. this is fascinating because it shows despite the site we are you areu.s. equity, seeing some measure of caution in credit markets. that chart is interesting to me. what happened back in august when you saw high-yield the relative stability in investment grades. this chart for me is an eye-opener. obviously a lot of focus on zimbabwe, this week in particular, with the forced seizure of power has been dominant on the political reins. that we have talked about emerging markets and the upper parts that we have seen. the blue line. the white line is the stock market in zimbabwe. the outperformance of this is incredible. yearhigher over the past in dollar terms. this is a safe haven for zimbabweans. have power money into the stock markets. is safety. if you want to see confidence returning, bingo. scarlet: this is the market close. this is what they look like as we approach the close. ♪ >> stops in the green. the nasdaq at a record high. i and julia chatterley. >> i am scarlet fu. in live onre tuning twitter, we welcome you to opening bell coverage from 4:00 to 5:00 p.m., eastern. minuteus begin with the died. we drifted higher. look, this is a rally. the nasdaq up by more than 1%. run cisco, from walmart -- it is a good sign. >> couple of days of consolidation. a .2% dip. >> let us talk about this individual names. walmart trading with its best day since 2008. biggest and more than eight years. walmart keeping pace with amazon. barnes and noble got a big leg that it wasort getting a buyout proposal from barnes & noble confirmed that it did, in fact, get that offer. get the chairman on board with that plan. best buy coming in with a downer. i should not say up, but down 6%. in texas,ricanes florida, and puerto rico, as well as earthquakes in mexico. charles and david koke, billionaire brothers, are backing meredith's bid according to people familiar with the matter. >> i am struck that there is a yet, you rally, and are seeing compression in the gap between united states 10 year and two-year yields. these two rates, asse two inch mark rates, collapsed at the lowest level since 2007. an increasing amount of money managers are expecting this gap to collapse to zero. that means no extra yields to own two year treasuries next year. that is amazing. this also comes as inflation expectations come down. you wonder how much that has to do with commodities, because oil prices are serving to pare back those gains. ongoing uncertainty with regard .o opec leaders theare seeing this in commodity market as well. today.dollar index full of federal reserve speak today. the house passing tax support was well. raising modest danes. relatively unchanged on session. euro dollar also under pressure to close at the 50 day moving average. to trim the positions, perhaps some of the softness that we are seeing now. we are coming under a bit of pressure. reports suggesting that the european union will reject the u.k. trade deal. funny, that. i want to show you the two-year chart. we will not have time to talk about it today. dollar andde ending gas stocks, around 6% or $30 billion worth. they want to make themselves less vulnerable to oil and gas. guys,teresting thing, they have are the 2% fixed income and two and a half percent real estate. that is not exactly diversified. >> i see opportunity there to shake it up a bit. pitch.ers, go make your >> you look at the bloomberg commodity index, it is quite striking. we have a big pullback. those are today's market minutes. .> let us bring in david bailin david, lisa was talking about a flattening yield curve. is this a sign that things are going to go awry soon. ? that is the normal interpretation. you are seeing increased earnings throughout the cycle. they have some momentum behind them. tax -- the question really is whether or not we have the inflation anticipated. so far, we have not. it is a mixed bag. the circumstances are somewhat different. clearly, we could have a recession. the new york federal reserve report came out showing that consumer debt levels were climbing toward all-time highs, particularly credit and auto debt. does that concern you? because the consumer has been the engine of recovery. are we tapped out? david: we are concerned about the consumer. in general, you have to look at the loads bearing in terms of rates. if you were to look at this time. or the last all-time high, the debt material is less. let us wait until last friday to see that. talk about corporate tax cuts, both on the equity markets and those tax cuts enacted. also, you talk about the united states dollar as well. explain. david: the u.s. tax packages complex. it you want to boil down what it is going to do, it will cost u.s. -- it will cause u.s. earnings to go up. foreign corporations will want to invest in the united states, and that is good for the market. theoretically, it was designed to create more investment. it is highly unlikely to have that impact. part of your first question, it is positive for the stock market in the united states, certainly for the first year or two. i think the impact is far more marginal. if you look at what the average consumer can get out of this, it is slim. it is probably married to the plan, but this is about corporate tax reform and how to pay for it. the head of double line came out with an interesting statement, shall we say? "i and very disappointed about the shape of this tax cut. i am just appalled that we are going to continue to have a carried interest scheme. i lost hope with the drain the swamp concept. the swamp keeps getting bigger." do you agree? david: i am not going to have an opinion on that. giving private equity firms the benefit is a matter of lobbying and not long-term tax policy. the core of your question is, does this accomplish something significant? the answer is, yes it does. does, is how it pays for it. it will increase the deficit substantially over the life of the tax bracket. i am writing about this in our year in peace. the schizophrenia is between the , as, which is compelling you have accelerating global growth. you have earnings per-share going up modestly, but nicely. the rest of the world is going up 10% or more on projections or the next year. you have a differential between equity prices in the united states and the rest of the world. of rate valuets in emerging markets. when i look at this i think to myself, you should feel good. investors have put much more money to work over the past three months than the previous six. travel the world and talk to investors, they feel at ease because of the climate. -- they feel ill at ease because of the climate. but it is not making them not put money to work. >> since 1945, there have only been two times when markets have moved in a coordinated fashion negatively. the best thing an investor can do in the united states is to diversify. that will provide real risk protection for them. at the end of the day, we are optimistic for next year. i gave a talk where you look at the data and say, looking at earnings and fundamentals and the amount of trade that is going on, the way the consumers are buying globally, you have to assume 2018 will be a good year. and i agree with you about the diversification. they did do one thing well. by selling oil -- >> diversify. -- looking at concentration risk, and acting on it. david bailin, thank you very much. you should become prime minister. coming up, the dawn of a new era at the federal reserve. officials are pushing forward. are talking the fed. this is bloomberg. allon and the jury hopelessly deadlocked against all charges and a well cleaned donor. prosecutors did not immediately say whether they plan to retry menendez. >> the way this case started was wrong. the way it was investigated was wrong. the way it was prosecuted was wrong. the way it was tried was wrong. senate majority leader mitch mcconnell issued and investigate -- issued a statement saying he was calling on the ethics panel to investigate the actions leading to menendez's indictment. francis is insuring lawmakers to protect what he called the common good. in a message to a medical association, the pontiff expressed concern that sophisticated medical treatments, particularly wealthier nations, was failing. without specifying, the pope said that we should protect society's most vulnerable. today's demonstration was the fourth time since september that protesters have taken to the streets to express discontent over the crohn's policies. policies.s wade throughe to athens floodwaters in search of people affected. several remain missing. the disaster was among the worst to hit the area in decades. this also includes the acropolis. global news 24 hours a day, powered by 2700 journalists and analysts in over 120 countries. i am mark crumpton, this is bloomberg. eight radical revamp of united states monetary policy. the federal reserve is urging the fomc to reconsider the inflation target and switch up or shake up the playbook. i matt. we are joined step back and explain why 2% is the inflation target, not just for the fed but we can talk about changing it. >> this goes a while back, actually. the reserve bank of new zealand was an early adopter of this inflation targeting and picking a numerical target. , but this up with 2% never gives enough cushion that if we need to cut rates, you know, we are sufficiently up of 0% inflation. that is more or less the story here. it seems to be an adequate amount of cushion against the threat of deflation. it is a nice wage rise. it is not nothing. matt: exactly. this is in the range where thatmists do not believe inflation will affect decision making in the long run. this is that compromise that is basically how you get to 2%. >> this that inflation will affect decision making in the long run. is the problem that we face right now. we are going to close, but we are just not there. get rid of it completely? matt: the shortfall on inflation is one problem. thewe are going to close, but we are just not there. other part is that the federal reserve and other central bankers believe the so-called neutral interest rate has fallen since the crisis. that is the big thing. i brought a chart that we can look out that illustrates -- >> let's pull it up. this is the legacy of the janet yellen federal reserve. line shows when she took charge, and the green line shows neutral interest rates. you can see at has come down from 2%. this is consistent with pre-crisis interest rates. the way down to 75 basis points. the federal reserve is now looking at this thing up, ok, if these rates are lower than we will have less room to cut rates in the future. the other think that is happening is that earlier this year, there was a paper some deadby individuals. according to their model, the fed is likely to spend a good amount of time at the zero level going forward. problems and these had to do quantitative easing. got a lot of political heat for that. could not stimulate the economy as quickly as they wanted. that paper was a big wake-up call. that is the impetus for all of ,his discussion going forward maybe we need to figure something else out. julia: if you raise the inflation target to 2%, the idea is that rates can be higher before real rates become restricted on growth. that gives you leeway on the downside. be any more credible to have an inflation target that as high when we struggled, particularly in recent times, to get it to 2%? about whether or not the federal reserve can hit its 2% inflation target. the traditional economists running the central bank really believe that inflation is a function of fed policy. some are saying that part of the reason why we cannot hit the target is because we are raising rates. that, and looking at inflation expectations are going down. to them, raising the target would help raise inflation because it would raise expectations. that would feed into pricing decisions, etc.. the bond market has been right and driving inflation expectations. it is like, who is driving the bus? is expectation driving the bus? matt: these are the sophisticated investors who follow everything the bed says. what hope do you have been for the fed to boost inflation if they are not really trying? raising the inflation target is just one option on the table. this is where the debate opens up and becomes interesting. benjamin bernanke the submitted basically if you have a. where you are undershooting inflation, you have a. to overshoot it. you can see how there is this conversation developing right about possibilities. a lot of the federal reserve presidents are saying, ok, we have to have this conversation and pick one. we are not going to wait until the next crisis hits and have all of these actions on the table. julia: probability changes? saying it would be a good time with the federal reserve leadership coming in, but i expect they will have more conversation over the next year. >> great. more to talk about. thank you, matthew. breaking news from gap. it was a beat on the bottom line. $.58 the reported number. 3%, and looking for a gain of only 3%. gap boosts its eps forecast to at least 208 for the year. guess what? old navy and gap are positive. banana republic, down 1%. from new york, this is bloomberg. >> it will be partly autonomous. tweeted about the unveiling this week, saying this will blow your mind clear out of your skull and into an alternate mention. classic musk. joining us to discuss, senior . is thisomit shah going to blow your brain out of your head and into an opposite universe? we are excited to be in l.a.. excited to be here for this event. we want to know how much this will cost? how far will it go on a charge? you sort of a looted to how will the car drives by itself. >> is this a distraction for tesla? it hasn't really come through with the deadlines that it has imposed upon itself. elonthis written to take musk's eyes off the wheels? he has shown a propensity for managing many things at the same time. they went extensively into the last phone call about production issues for model three. they have their arms around it. they did not cut themselves any slack by setting aggressive production targets for the first quarter. we will see how it goes. we are optimistic that they figure out these models and constraints, and they sell these cars next year. who is the biggest driver of demand for these autonomous trucks? romit: good question. it comes back to how far you can go, how far you can travel with these trucks. couple hundred miles. if that is the case, it will be logistic companies that travel rum one hub to the next. one allocation to another. the vehicle may travel 600, 7 hundred, or 800 miles. you're looking at companies like that xp. ,> senior analyst romit shah thank you. >> breaking news. bonds did trigger payoffs on credit default swaps. this is a massive deal because aile pet of a set bonds has ben known amount of credit default outstanding, this could leave a lot of investors in the red if they are called on to pay out on contracts. this is one of the big questions. check is has said the in the mail and we will make good on promise of payments. one says, not a single they have received payments. again, it has been ruled that the state owned oil company has triggered a out. from new york, this is bloomberg. >> i am mark crumpton with news. house republicans passed their version of legislation to overhaul the new tax code by slashing tax rates, and lowering tax burdens for most individuals. estimated $1.4 trillion to the deficit over the next decade. >> i am proud of this conference. we work very hard. we know there are people who are struggling in this country. we know we are just coming through a decade of economic anxiety. the nationt this is with much more potential that has not been tapped. mark: the senate continues to they -- debate its own plan. 'snator robert menendez bribery trial ended in a deadlock on charges against the new jersey democratic senator. the judge ont told monday that it could reach a unanimous verdict on any of the eight team counts of the indictment against menendez and his friend. anchor angeles radio accusing them of craddick senator out franken of kissing her and fondling her during a 2006 u.s. hauteur says she accepts his apology, but he could have apologized earlier. she is not calling for an ethics investigation or for the senator to step down, but she hopes to inspire others to tell their story. >> i accepted the apology. sure. of course people make mistakes. i accept that. ?he ethics investigation that is what mitchell mcconnell wants to do, that is on ben. i am not calling for that. that is what he wants to do, ok, that is up to them. senator released a itatement true in part, " respect women. the fact that my actions and getting people to doubt that makes me feel ashamed." mark: president trump voters to determine for themselves whether or not allegations of impropriety against alabama senator candidate going more are true. sarah huckabee sanders said that roy moore should withdraw from the race if any of these allegations are true. in over 120s a day countries. i am mark crumpton, this is bloomberg. >> a recap of today's market action. stocks riding the most in two months. record high of 1%. this looks like a rally, guys. we also have solid earnings to thank for that. walmart, for instance. cisco as well. its morees boosting year outlook, beating estimates. shares up by better than 7%. gap is another retailer that came out with an increased 212 -- from 282 208-2212. >> back to the breaking news. -- venezuela's is in the midst of a default. if you look at the bloomberg, you can see the five-year cds contract. the amount people are paying to protect themselves against defaultsould pdvsa get skyrocketed over the past couple of days. i should add that venezuela has been saying, the check is in the mail. creditors will be receiving bond payments. not a single investor contacted by bloomberg received a payment. this comes as yet another blow. julia: of course a question of what happened to that money. one point to make, is that this only refers to the cds. it has nothing to do with the pdvsa bonds. themay have a payout on credit default swaps, which is like insurance protection. it is a full payment, potentially. i say that with raised eyebrows. i will say that absolutely you're right. out. and s&p came but does not mean people will not get their money back. this is definitely on venezuela and pdvsa. state and oil company versus venezuela the sovereign. venezuela has been lurching from one bond payment crisis to the next. >> more details on this later on. meantime, what you miss? ranking of business schools offering full-time mba programs. upenn came out near the top. what does this say for tie-in with reals? give us some highlights here. >> if you want to get the highest pay, go to stanford. oddly employers ranked san stanford mbas as 20th. i do not understand. pay? you get the how are these rankings comprised? where did they pull the data from? we looked at pay data. we look at where these graduates end up. if you want to end up with an asia, youith a job in had better go to chicago. for tech, go to byu. the highest share of nba's who end up in tech graduate from byu. >> had no idea. how relative is this? they are looking to recruit from non-ivy league schools in order to get new or different talent in the door. thatou hearing from people this matters less? and the bas are not in demand anymore. applications are following people are shutting down there -- their mba programs. >> they are trying to allow more flexible online. they are not trying to allow greater access, particularly for these guys to do that. it is interesting how they are trying to be open to the fact that you have people in silicon valley saying, you did great? >> exactly. shahien: there is one company to look at. twou does online graduate programs, and their stock doubled this year. they are one of the companies capitalizing on this trend. >> does not mean you should not look at bloomberg's annual business school rankings. counts forll something. where talking about 26, but not as highly sought after as number one. harvard mba always pays off in one way or another. shahien nasiripour, bloomberg reporting. coming up, the u.s. virgin islands struggling in the wake of the hurricane. we'll talk to the tour is in commissioner about how the islands are trying to get back on their feet and get those tourists back. from new york, this is bloomberg. >> two months after hurricanes maria and irma slammed into the virgin islands, the area is slowly getting back to the road to recovery. the arduous journey has only just begun. let us talk about the cleanup after the devastation while attracting potential tourists. nicholson is with us. commissioner, great to have you with us. talk to me about what you are doing here. what is the situation? a lot has happened over the past two months. september was a horrible month in terms of devastation. the resilience of these people brightly.- has shone visitors are beginning to come back. s and tourism started at the beginning of the month. the buccaneer hotel reopened in november. november 1. it is slowly coming back. we are looking forward to moving .orward with you mentioned that tourism accounts for a high portion of the economy. what about the virgin islands? the electricity is underground. that was eliminated first. it is very positive in terms of tourism and the economy. right now, the entire territory is at 30%. each island is different. our governor has indicated that by christmas, we will all be at 90%. there are over 500 lineman and the territory helping to get us electrified. we are excited about that. julia: this is a huge challenge. going into this. as a tourist, when you see a headline saying that 70% of the country is without electricity, how do you combat that? it is a frightening headline. to support you and invest dollars in supporting tourism industry. that is pretty terrifying. truth of the matter is a major part of our two risen is cruise to resume. they come for the day, and all of the commercial centers -- there is dining available, activities, and attractions. the beaches are still incredibly beautiful. the shopping is back. great reasons to come to the united states virgin islands. thinking about millennial's who are increasingly looking for experience. they do not want to be isolated on their cruise ship. to, andt exposure engagement with, local communities. is that reasonable to ask? there are people who are already coming. i was recently home on a flight. there are in the esters and visitors coming in. people that are very interested in helping with the relief efforts. we are finding that people are loyal, and they are coming back people that have been here, they come seasonably. there are people that just really want to help. 30% of thesm is economy? what about the other 70% affected by the hurricanes? beverly: we live on. we we have major rum distilleries. that is certainly another part of the economy. truthfully, over the next year we'll have instruction that will be a major part. territories are pushing for more funding. have you received enough money? one of the challenges that the government is facing -- >> our federal partners have been with us all throughout. they remain with us through maria. we are grateful to the american. the help we have gotten from want to do not just build back, but build better. we want to build a better electrical system underground. geographically, and where we are, it makes us one of the most useful places. but, it makes us vulnerable as well. partnerso your travel ask you? beverly: people want to know what they can do if they come. the beaches are beautiful. nature has an incredible way of healing itself. dining is available. there are several hotels, particularly on the island of st. croix. you want to stay overnight and have that experience and help, this is a great way to help your country. >> our thanks to beverly nicholson-doty. news.ht now, breaking triggered payouts on a credit default swap. thee were speaking before, vsa has crossed into default territory. take a look at the terminal. debt for five years. you can see how in the past few days, the probability -- it means it is a higher probability. it means people are charging more to be protected against default. atrlet: we are looking 15,245 basis points. people do not have a full comprehension of just how much money is at stake in the derivative market. that generates big winners and losers. private equity firms among them, but they have to pay each other based on the default. getill bring you more as we at. from new york, this is bloomberg. ♪ >> dealers and investors just ruled that petroleum is in a complete printable bond and was failure." joining us bloombergcuss is reporter vivian rodriguez. thank you for joining us. this is a much anticipated ruling. there is a lot of money at stake. do we know how much money is at stake and the market? vivian: we do not. the big question is how much can we lose? how many people will go under? eight lot of investment banks would sell credit default swaps alongside venezuela bonds. put it into perspective, how much of the venezuelan debt is outstanding? : you are talking about over 100 billion dollars. this is a massive debt. restructuring massive debt defaults. every weight you see this situation. this is not the bonds. few could have a situation where we see the payout. , butefault environment actually you could still ultimately and this is a big? , you could see payouts on the bonds eventually? vivian: you could. they ruled it was failure to pay. nobody gets paid today or tomorrow on their protection. they will meet again to establish value. how it will work. when. this was the first step in this. does this change how the venezuelan government response? they have been holding meetings and talking about renegotiation, refinancing, restructuring. does the response change? : hard to say, scarlet. we had no details. as -- as many questions very few answers. i cannot hear enough about this story. drug kingpin put in charge of venezuela's debt negotiations. venezuela keeps saying the check is in the mail, the check is in the mail. nobody gets a bond payment. our s&p and fit saying nobody believes you? vivian: this is going to be a fantastic debt restructuring. what happens if the payments eventually get there? if there is a block in the system, because clearly there are difficulties. what happens if the payments arrive? another question to see legally, how do you receive the money? : thank you very much. >> more breaking news. , according tos cnbc, that comcast expressed interest to buy 21st century walks. disney wasrd that looking to buy part of 21st century box. comcast has now expressed interest. i was not aware until the first wasrt that 21st century fox interested in selling. >> people do think that they have some value there. gain.% >> they are continuing to absorb nbc. -- going after 21st potential tie up with everything else going on right now. wow. >> just add this to the list. let us get you to the bloomberg business flash for a look at the biggest news stories. pleaded nothas guilty to charges that he steamed to push the company's opioid painkiller. -- kapoor is the highest ranking drug company executive to be excused of an opioid related crime. norway's $1 trillion fund wants out of oil petroleum stocks to protect against risk. the fund that controls 1.5% of or thestock jumped up to billion dollars of shares in names like exxon moyle -- exxon mobil. that is your business flash update. >> coming up, what you need to know to gear up for tomorrow's trading day. it your, this is bloomberg. -- from new york, this is bloomberg. ♪ ♪ united states stocks rising. the nest that climbing more than 1%. .o not miss this >> president mario draghi makes a key notes beach. -- make a keynote speech. that does it for what you miss? technology is up next. have a good evening. this is bloomberg. ♪ is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. >> you're watching bloomberg technology illiterate let's check for short new spirit today, house republicans passed their version of the overhaul of the u.s. tax code, lowering tax burdens for most individuals and adding over $1 trillion to the deficit over the next decade. continues its sin debate its own separate plan. -- his codefendant, the panel first told judges they couldn't reach a unanimous verdict on any of the indictments against menendez. the trump administration is considering having mick mulvaney serve as interim head of the consumer financial protection bureau. the current head will -- announce he would step down