Julie hyman is here to bring us up to speed. Julie we ended last week with records. The streak continues. A muted fashion. The dow and s p, little change. Of deal talkt today, involving different companies. Abroad, and qualcomm. Lets look at the movers involved. Four percent. Qualcomm has said it would offer. Broadcoms is rising. Marvell Technology Make a bid. A deal makes sense. On the flipside, sprint is not ditchee like the last efforts to merge with tmobile died. Sprints shares plunging. Softbank is willing to reengage in charter talks. Those shares are trading higher. A lot of moving parts. We are watching Michael Cores s has the michael kohr convinced customers to come back to paying full price. Amd coming to a deal with dish. Being updateds over pivotal research. Analysts are citing the failed tmobile deal. Mark basic resources leaving the advance. Arabia is where our attention is today. The benchmark age. That was sunday. Fell in initially 2. 2 . Rose 3 . This is a today chart. Up 1 by the end of the day. An anticorruption drive was announced by the king. Investors struggling to get their heads around the changes. To ld prompt businesses before committing more in the biggest hour of the economy. In thechmark is up 4 last two days. This is kingdom holding, the a prince. Vehicle of he has been detained. Dropped 7. 6 yesterday, bringing his losses to 25 . The white line is the Investment Vehicle for the year. Look at the emerging market index gaining 30 . What a disparity in the performance. This is a weekly chart. Sterling falling for three consecutive weeks. Rising today for a second day after the boe raised rates. Mark carney spoke yesterday and tod the boe may be unable cut rates if the exit turns out to be worse than policymakers expect. Theresa may spoke to cbi and says she backs a transition. She urges executives to be more optimistic about the process. Sterling fell the biggest the klein in five months. We will talk about that later. Vonnie we will talk about the saudi shakeup. Authorities describe it as a crackdown on corruption. Among those arrested, the billionaire investor with stakes in citigroup, twitter, and apple. The scope of this purge is what is surprising, the number of princes and ministers arrested. Vonnie our middle east executive editor joins us now. How much is this arresting control and how much is it to calm trade nerves among regular citizens suffering from the price of oil shock . Idea is he is fulfilling a promise. Fighting corruption was at of the biggest promises. Certainly being received as such. Anyone looking at the scope gets mentioned that the scope of this thing included businessmen, princes who are not in business, necessarily, it does show and isd a clear message there one person in charge and that is the crown prince. Asnie what qualifies corruption . No former been formal charges. Is money laundering, bribery, skimming off the top. Charges have not been put on the officials yet. Mark what does this mean for alwaleed bin talal . They have taken a significant hit, 12 over the last two days. In terms of what it means going forward, it is unclear. We dont know what it is he is being accused of. Might be freed, he might be exonerated. It remains to be seen. Mark generally, market reaction, summit up some it up sum it up for us. The implications are that it has created a sense of uncertainty. It is the suddenness and the scope of it that is surprising. It is uncertainty that investors shy away from. Youl this settles down, might see investors continue to stay on the sidelines and weight for they use the opportunities that seem to open up in saudi arabia and putting their money and. Vonnie we had yemen targeting a airport and the lebanese Prime Minister resigning. Are any of these connected . It is hard not to draw connections. Rocket may have been a coincidence. The Prime Minister of lebanon has added to the sense of uncertainty. He was in saudi arabia. In saudi arabia, he read a statement in which he resigned. There is a sense something may be happening, something unannounced in the background. That is adding to the sense of uncertainty that there are things moving in the region that people are not clear on. Thank you. Lets check in on the first word news. Links there is a possible between the gunman and the texas shooting and the church he attacked. His former inlaws occasionally attended the church. The attacker killed 26 people and wounded 20 others. Anyorities have not found ties between him and organized terror groups. William dudley will retire the middle of next year. York fed in the new the wake of the financial crisis. Commerce secretary wilbur ross says he does not have ties to russians under u. S. Sanctions. It stems from his ownership stake in a shipping company and its link to a Russian Energy company. Ross says he has been selling his interest in the firm. Claims of Sexual Harassment keep getting worse. Deputy, damien green, is having to deny a report police found pornography on one of his work computers. Resigned over a report he exposed himself to a male Party Activists 16 years ago. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am emma chandra. Up, opecs largest producer. Futures in focus is next. Mark live from london, i am mark barton. Vonnie i am vonnie quinn. Bloomberg markets. Oil trading at more than twoyear highs. This after saudi arabia purges officials. The u. S. Dollar is seeing more gains than losses. , ourng us to discuss guest. Lets start with oil. The oil admin this duration the Oil Ministers meeting. I am calling at laundry day. The crown prince is consolidating his power. The thing that is important, the crown prince is in favor of extending production cut. Take young him are seeing brent take the brunt of that. Had 2. 1 Million Barrels last month. The transportation costs. F wti to other regions vonnie the u. S. Dollar trading above 95. It is the idea the fed is being taken seriously. You have the ecb to continue to wind back. Membera board governing say there is substantial accommodation needed in the ecb. A march rate hike next year, in the last month, going from 20. 5 to over 40 . The fed is being taken seriously. The Democratic Party in japan won against securing that. If you want to be long currencies, it is only the u. S. Dollar. I expected to grind higher, but not scream higher. Vonnie thank you. Mark still ahead, bracing for a battle. An unsolicited offer for qualcomm. Bloomberg was first to report this. More on this brewing megadeal next. This is bloomberg. Vonnie this is bloomberg markets. Imf on vonnie quinn. Ink i am mark barton london. The u. S. Supreme court has mp appealungs in a Patent Infringement case involving apple. Apple 120ded million in damages. Last year, the Supreme Court ruled in samsungs favor. At the top of the Health Insurance anthem, the chief is stepping down. He will be replaced by gail. It would be the Biggest Technology takeover of all time. Broadcom offering to buy qualcomm. The cash and stock offer represents a 28 premium to closing price. It would make broadcom the world upon thirdbiggest the worlds thirdbiggest chipmaker. For more on that, lets our analyst. Toqualcomm better positioned stay alone . Ip package. Ty does it need qualcomm more than qualcomm needs anybody . Ip package. They have a whole host of problems. They have escalated litigation broadcom maywhere be able to have a better relation with apple and deescalate the situation. They will have a better way to business and have it be more efficient. The combination makes sense, but it creates the li na. Enoughit creates a boat bohemouth. A wired networking space. Vonnie will he get it done . Will he get Regulatory Approval . Broadcom. A different different management and different than the history how broadcom grew up and established a market. What we have diniz ars abbey, showing what we have seen as they are savvy. With a notion towards making this americanized, if not an american company, so they can get deals. The politics of the trump administration, they want consolidation. See the needs of the consumer first. They see the needs of business first. Moving back to the United States eases the concerns broadcom has with the deal. It is a minor glitch, but reannouncing the move and moving to the United States would give that approval and have broadcom mixed with. Mark where are the glitches. N it comes to brc the biggest glitches around the licensing act men. It is a piece of property whose existence is based on not producing chips, but on monetizing intellectual property. They had the biggest beef with apple. Is broadcom word to isolate that piece, contain that risk and deescalate the drama with apple, this is a huge win. The nature of qualcomm, the idea that it is a country that a company that creates stuff and license it has been there weakness. Apple can say we know what you do because we license the chips. It has led to weakness in the stock price, which makes it impossible for them to approach this company. About ent written what if you are able to contain the risk we have written about what if you are able to contain the risk and they make it about chips again . , but ins your revenues the longterm, you dont license them, you just make them. Business morehips valuable and everyone has to buy it. Vonnie given the legal battles and so forth, is the premium enough . No. Comm says we dont have an edge on whether there deal gets done given the drama they have to go through. Our best guess is that it does. There are a lot of movements that have to be done. The premium is decent. Vonnie fair value . On what thes business will go for. Vonnie thank you, cory johnson and anand. Still ahead, the Federal Reserve is in focus. Build ugly plans to retire next year. It is about six months early. Stuart taylor joins us to us less leadership changes at the central bank. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Miami vonnie quinn. Mark i am mark barton. This is bloomberg markets. An much andra from new york. There is a report that in theshes a connection suspect in the Texas Church Shooting in the church itself. It is inland his inlaws attended the church from time to time. About 20 were wounded and 26 were killed in the shooting. Trump is slamming japan over trade. He told leaders trade with japan is neither fair nor open. He called on the japanese to build more cars in the u. S. And buy u. S. Nzo abe to military equipment to create jobs in america. Paul rands injuries are worse than thought. He has five broken ribs. His alleged attacker is his nextdoor neighbor. It is not clear when he will return to work. President talan a court in brussels will have to act onon whether to spains request to arrest him. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Vonnie another vacancy looming at the Federal Reserve. Build dudley will retire next year. His departure will widen though leadership overhaul. Spoke earlieran about his retirement. It is a big loss. He has been influential in the way he has conducted the work of the new york fed. He has been a good vice chair at the fomc. This is a loss. Joining us now, stuart taylor. He joins us from boston. Your reactions to the news that , and an themmember another fed member, and a very important one is retiring in a few months, what does that do . You will have to add to the board. For ae had vacancies while, influential members leaving. A new fed chairman, Jerome Powell. The dudley news aside, the appointment of howell is probably a good thing appointment of Jeremy PowellJerome Powell is probably a good thing. He comes from the business side of the world. Hopefully he makes a change. Members,l fed board researchers, economists, they are great. The fed is anut institution that needs to change. These openings as an opportunity to move the fed away from the model driven institution it has become, bring some people in from the out side and become more in tune with the real world. This debatele is that is occurring at the fed about moving the inflation target from 2 to four to 6 . You can build academic justification for that, but it is a terrible idea for retirees, those at the bottom and of the wage spectrum. Just because they are producing Academic Research that ben bernanke and janet yellen seemed istake seriously it disturbing. Vonnie that might be an overstatement. I am not sure where that thesis is coming from, but lets stick to the 2 . There. Ot get will Monetary Policy change under powell . I suspect not. Even the 2 inflation is a tax on the wealth of your citizens. 2 , the fact we are not getting their, we are not getting there for the right reasons. We are not getting there because Shell Technology is pressed down the price of oil, gm owes have chinad down the price of joining the world trade organization, globalization. Amazon. Downf these things pressed on inflation. Is 1. 5 to 2 , yearoveryear headline, it is 2. 2, despite the innovation. Fed should be celebrating the fact it is not over two yet. It is a good thing for your citizens. Year what is the 10 telling us today . What does that figure tell us and what does that mean for you and your portfolio . Last may, i thought rates would fall. They got to 2. 01 and now they have risen back. Now they are falling again. They are in a trading range right now. I am surprised rates are still here given the term premium is negative. By any measure of valuation, rates are too low. At the same time, usually low rates are accompanied by a crisis. We have had risk assets going straight up for months. The twoyields are in 30s. If we see a correction in risk, a sub 2. A shot at it is a large trading range. The math does not work for the average investor. Future losses outweigh gains from a flight quality trade for the average account. What i have done in my own portfolio, two weeks ago, we went from being short to neutral. I currently manages it is a fiveyear duration. Mark have you changed your assessment of what the fed is going to do given that we have a new chair, if he is confirmed by the senate, given there are other positions to fill . Suggesting it is more want to . I think we get one in december. We are in a coordinated global expansion. If you look at pmis, things are ok. Peaking. The economy is going to soften. You get one in december and one or two next year, then it becomes questionable, particularly if i am right about inflation. Monti thank you for joining. Speak at theill Economic Club of new york, talking about Lessons Learned from the financial crisis. You can watch his remarks on bloomberg tv. Mark sprint shares plunging. More on what that deal that did deal means. Mark i am mark barton. Vonnie this is bloomberg markets. Shares of sprint and tmobile falling after merger talks were called off. Investor hopes for a merger. Joining us with Maurice Taylor riggs. Taylor they probably could not agree on control. S about 60 of tmobile. They were worried about giving up control. What does it mean for share prices . For tmobile, analysts say fundamentals are good. That is maybe why it is down less than sprint. That i subscriber adds took from bloomberg intelligence, about a 16 drop in the quarter. Growth is slowing. This was not a huge surprise. About sprint, that is where it gets interesting. Sprint wasought worse from a Network Point of view. A lot of the towers rally off of this failed merger news. You are seeing some of these towers move higher. Sprint needs to reinvest in its network. Mark sprint talked about a pact with altice. What did that call say about the agreement . Would have gone through regardless of the tmobilesprint merger. View, whatpoint of this means for sprint, they can fiber network, which is key for them and will help them build 4g and 5g. Can sell wireless in that territory and provide voice and Data Services they could not. Vonnie thank you. Our stocks of the hour. Mark time for the Bloomberg Business flash. The u. S. Supreme court has appeal in asungs Patent Infringement case involving iphone. To applearded damages last year. The Supreme Court ruled in samsungs favor in another patent dispute with apple. Thirdquarter earnings missed estimates. Mylan brought in less revenue from its at the pen. Epipen. The lack of impartiality has not helped the murdoch familys case. That is the Bloomberg Business flash. Vonnie the Paradise Papers adding to trauma. You will hear from wilbur ross, next. This is bloomberg. Vonnie this is bloomberg markets. Wilbur ross under fire for business ties to Vladimir Putins inner circle. Russian he told bloomberg he has done nothing wrong. Have no business ties to those russian individuals under sanction prior to my joining the board. They entered into some charter a russiants with hydrocarbon company. I had nothing to do with the negotiations. Never met the people under sanction. Vonnie that is wilbur ross speaking to us earlier. Lets bring in margaret. Is one sayingthal this is wrong and needs to be fixed. Is there something unethical about the commerce secretary serving on the board of a Russian Company where some of the directors are sanctioned . He disclosed everything that needed to be disclosed and there is nothing in terms of a conflict for him because the Commerce Department does not regulate shipping, but fundamentally, you have a political question that comes at a terrible time for the administration in the midst of the probe. They have said they have no connections to russians and as bit wide bit, the evidence reveals there are a lot of financial business ties. It doesnt mean there is anything illegal or wrong, but it means it is something that will become part of the broad notion of what this investigation entails and will keep a focus on russia in the months to come. He probablys say will not hang onto that stake and he has begun selling it because of other reasons he did not detail. He would like to shut down this controversy and move on. The question is, will democrats let him and will he be able to . Vonnie what might the consequences be . Will he be dragged into the special counsels inquiry . Is it possible he will have to give up his post . Thereont think we are yet. More broadly, this notion of the on,p trump has campaigned that he wants to clean up and get rid of those murky ties, in the economy, if you are invested in a diversified way, it is likely you are involved in complex business deals that involve russians. This is politically problematic for secretary ross and the administration. From a legal perspective, whether it is anything that will cost his job, it is too soon to say. Information the president wanted while he is in asia trying to focus on trade deals. Mark these papers allege tax avoidance by u. S. Multinational companies. The slowingntail down of this tax overhaul bill or not . These papers are a trove, much like other leak documents have been, where they face criticism for them being leaked, but they will be of interest to investigative reporters. When you look at what is going then washington, a push by Republican Leadership to spend four days on a plan that could take months or years to pass the normal course of business. Anything that jog the narrative or raises questions, it is dangerous politically because there are divisions in the party over things like high tax states and compromises cobbled together in a vulnerable way to get everyone on board to do an initial passage. Anything that disrupts the velocity where one can pass or what happens when goes to the to affect the ability this plan. Mark lets talk tax. The house ways and Means Committee has a big week ahead. It is taking up of amendments to the tax reform proposal. Margaret was just laying the groundwork. What is possible in four days . It is frantic. It is. Billintend to approve this out of the committee by thursday and send it to the full house for a vote next week. For is a fastpaced legislation usually reserved for emergency items. This time, they are doing it on a tax overhaul. We only saw the bill last thursday. There will be some revisions. The messages leaders are putting out there, any changes you want to the bill, you better get them done this week. To the floor of the house next week, there will be no amendment. Vonnie we are hearing chatter about the Obamacare Mandate going away. What is the likelihood of that . Speaker ryan has said it is on the table. Kevin brady has said it is on the table and trump has been pushing for it. It has legs. , costing 15se money Million People their insurance coverage. The idea is popular among conservatives. Same battle on health care that did not succeed in the senate, the bill died in the if republicansem try to mix health care and the tax bill. There are a few obstacles here. Where is the compromise on state and local, on mortgage Interest Deduction cap and a couple of other sticking points . The Senate Republicans are more interested in eliminating that. They voted unanimously for a nonbinding budget amendment. It is a bigger problem in the house, where they have members in high tax states. They eliminated state and local income taxes from the tax code. They allowed a property Tax Deduction of up to 10,000 per family. That is not enough for some. They are going to be losing support. That will be an issue. On mortgage Interest Deduction, they are cutting the cap to 500,000 for new homes. Mark says the gop in house cannot afford to lose more than 22 members on the floor. What is the math looking like in the house . Fewer than that have come out against it. They are looking ok. Numbers went home for the weekend. They heard different feedback from different interest groups. We will be hearing more opposition. We will be hearing a lot about it in the next few days. Mark busy week for you. See you later. Coming up, the european close. We are less than 35 minutes away from the end of the monday session. Stocks are higher, rising for a second day. The close is next. 11 00 a. M. In new york. 30 minutes left in the trading day in europe. From london, i am mark barton. Vonnie i am vonnie quinn. Is the european close on bloomberg markets. Here are the top stories we are covering around the world. Inxit talks are deadlocked the sexualharassment scandal rocking westminster will not go away. European banks are back in the hiring game, raising the stakes for compensation on both sides of the atlantic. The correction crackdown removes ministers, officials, and leaves one of the worlds richest men under arrest. Lets have a look at where european equities are trading. Up. Ark is sterling is up by. 3 after