Carlds on whether announces his claims to independence. Back down to avoid confrontation. He says he can guarantee a fair and credible election. Ahead of the Election Commission says corruption will taint the process. In august, the Supreme Court nullified the election in which the incumbent president was declared the winner. The top electoral official can you cannotid meet the global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Basic expectations of a credible election. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Julia live, im julia chatterley. Live, im julia chatterley. Scarlet i am scarlet fu. Joe i am Joe Weisenthal. Were watching the dow on session highs. Joe the question is, what did you miss . Watching the dow. Are coming for wall street jobs. You want to hear our next guest on how it is time to rethink jobs with algorithms. Join us founder, will in the next hour to talk about open ai and investing in Artificial Intelligence. Impact,l look for any those results coming up. Julia wall street is entering a new area. Im industry and giving away to algorithms and soon, Artificial Intelligence. Andnology in different ways using algorithms. Trade across portfolios. Analysts, social media, even data satellite initiatives and listings. Ed forecast and valuations to make investments faster than ever before. A task that would normally take any bank or months to dig through. The start of develops machine to identifyorithms potential m a targets primarily in the tech world. The ceo joins to identify potential m a targets primarily in the tech world. The ceo joins us now. Great to have you on the show. It was a pretty long introduction but we wanted to set the scene. A good question. I think the word automation covers a lot of nuanced thinking about how people do their jobs. There are some aspects of the repetitive and others that have a high level of skills. We talk about using aim is Machine Learning and we are looking at the ground work aspect. To doing muchf. Ore high order thinking understanding relationships better. Behind red sheets and powerpoint presentations. Joe when your software is making recommendations of potential matches between companies, is looking back at the history of deals and m a to find things that map against deals deals that were . Is that the idea . Quick fist. What do companies do today and what are the gaps relative to competitors and where theyre headed. Looking forward to find those matches. The company has entered into a new space and competing with a new set of layers, it identifies other companies that should be more competitive. Joe you hear technology and a lot of sound good on paper. Thing it is another thing to change workflows here what experience do use the on that hundred terms of getting people how they work. Done ishing we have keep the associate in the middle of the process. One thing to recognize as no one will accept black box answers. The machine told me this. Say the reason they will believe the analyst is the narrative. The narrative, control the narrative. Answer questions that would have taken several weeks to get to her they control the narrative. A huge timesaving benefit. Well cut jobs though. Analysts, out of a job, surely. It is possible and likely. What we have found in our experience is there is less of a substitution and more of an augmentation. It is empowering the analyst to do more. One thing we find is most analysts will tell us they never have time to do a good job because theyre running up against a deadline. It allows them to do a much better jobone thing we find is t. Nalysts will tell the augmentation part is what we need to emphasize terms of making analyst better. The augmentation part is what we need to emphasize terms of making analyst better. Scarlet doing all of that prepares them. What will dealmaking look like if the introductory bankers no longer have the job and everyone who is left our people high up the food chain . The way we imagine this is a difficult situation, because there are time constraints, we barely able to have enough time for one. What happens is it allows us to multiple hypotheses at the same time. A learningwe right now find th, very basic tasks. The network graduates, spending relationship and can create better structures for those deals. Element element it is not about spending time on that sheets. It is about understanding things better. I think that would make them a better then today. For to copy it confidentiality reasons, i cannot disclose but we have duty banks working with us. Thank you for joining us. Thank you. Up, lettingng into its stores, figuring it has more to gain than fighting it. Ceopeak to an incoming about the arrangement. This is bloomberg. About the arrangement. This scarlet the Department Store chain will sell amazon products and returns in select stores. The chief merchandising officer and incoming ceo began why asking what by asking why coal is working with amazon rather than competing against it . We all have to think differently. If we think about complementary strengths, what kohls has is an incredible thriving physical footprint. What amazon brings is the tremendous reach and the amazing brand. It is an unbelievable opportunity. That is an opportunity for you. Amazon as returning the item. Item. We think it is a great opportunity and a touch point with the customer to deep in relationships with new and existing customers. Tell me how this works in terms of cost. Who is paying for this . We do not share financials between the two companies. See whatcited to unfolds as we entered is these great experiences today. Are you concerned about amazon cannibalizing kohls, that you invited them into the store and they will take customers away . Our starting point on this is the ambition to be a leading omnichannel retailer. It is the marriage of our strength and physical footprint and of course digital presence. Working with amazon, we think it is a tremendous opportunity. Market and plenty of room. It is growing. That bringingcern in another ecommerce retailer, that may continue the growth or prison prevented from continuing in the same way . Believe there is plenty. We do what we do really well. They will then get really used to having i dont think so. No pure no. We are excited about the relationship. We will learn a lot more. U. S. Retailers not releasing order to stay abroad geographically. Said you were reducing the number of your stores. Does that help the store strategy . I think it is a great example of using the space differently. Number of yourenge stores. Ourselves to think differently. The customers are evolving in the industry is evolving. 200, taking a chunk, reducing inventory in those stores paid you get a space for those experiences. The National Retail federation printing a 4 in sales. Is that something expected as well, around that number . I will not comment on sales. I will tell you i was feel that holiday is black friday, the holiday campaign. It is a tremendously dynamic time in retail and i am sure your that from others. It raises the bar for us, which some say is daunting. I find it exciting and it forces think differently and outside of the box. 2018, you are ceo elect. 2018, you are ceo elect. What are your plans for calls. What are your plans for calls as you take on here . Do you have specific things you achieve . I am honored and excited about the responsibility that will take place come next may. Kevin and i will be partnering for years. My big focus is delivering a holiday. In may, the chiefs merchandising officer and incoming ceo speaking with them a contra. Now i look at some of the biggest business stories in the news right now. Giantzil, the ecommerce into their biggest economy. Shares rebounded today hours after amazon opened its brazil marketplace for electronics with no Free Shipping details were deliveries. Or deliveries. Amazon invests heavily in logistics, which they call unlikely in the shortterm. Ting map with apple to make managing machinery, and power plants. To ramp up sales and software services. Were looking at shares of snap falling. Julie hyman is here with the details. Usually, a pretty outspoken analyst. Pretty colorful in his notes. Literally, his note says it about his neutral rating on it. Usually, a ofack april 4 2017. There are not that many to play the migration of individual consumers to mobile. You see the stock is not performing well. Growth has slowed down. Not making money off of these folks. I remember when i went public. Im not a millennial and never used it. A low of just over 11 back in late july. It is now close to 16. Some people think there is some life there. He still has the rating and is not alone in being not correct. You have got the largest chunk of analysts on the stock. There are 10 eyes here. He is not optimistic when it comes to revenue. He is less optimistic. Worstcase scenario, seven dollars. If you look at earnings estimates, there are losses as far as the eye can see. One thing pointed out in particular, the average revenue per user. This is a quarter growth for north american average revenue per user. In the second quarter. His forecast when he initiated, 28 . It is a big dropoff. Thank you. Volatility hit a record low. This is bloomberg. Scarlet john cody reigns in you is equities and europe as well despite headwinds in weight places like spain and italy and elections next year. Everyone is focused on growth, the best seen in over a decade. If you look at it, it is doing the best level since the first half of toy 15. The bottom half shows volatility or in this case, lack thereof. It fell to an alltime low today. Year, it is down 40 . Of volatility for stoxx 50 is actually rising which suit just investors are paying to hedge against turbulence in the market. Central bank policy errors seen risk. Biggest tell the ecb next week. What about policies for Something Like government around the world . Creating some excitement this low tax rate low tax rate rati. About what we can see in terms of the high tax rate outperforming the low tax rate. As you see coming over the righthand side, even in october, we have seen the optimism voice on september fading away. It is the High International sales company, and those inflows over there, fueling optimism there. Get tax reform, companies can be happy Global Growth is good. We talk about mobile growth, one of the themes of the year. This is what it looks like. Earoveryear export theyre all going straight up. Shipping and things like that, up 35 all going in the right direction. Science for the economy. Scarlet komen Dow Jones Industrial average well industrial average well above 23,000. That is a sizable move. This is bloomberg. Earnings for all markets, the s p climbing for another record high, the dow closing above 23,000 for the first time ever. Im julia chatterley. Scarlet i am scarlet fu. Oe i am Joe Weisenthal welcome to our closing bell coverage every weekday. Record highs as we begin with the market minutes. Record highs for the dow and the s p. For the dow it is a fairly big move, up to 0. 7 , triple digit point move. Joe this is a big move. Inrlet and the housing came better than expected. Nevertheless, stocks continue to melt up, and as julie mentioned, it is given by earnings. A big component of the industrial average, rising 9 . Best day since 2009. That is following revenue and profit that beat analyst estimates. Revenue growth for the coming quarter as well is one reason thatnvestors helped drive stock higher. After five years of declining sales, ibm will show investors it can grow again. Afterompany is up 2. 5 selling the pharmacy management unit. It was accused of overcharging billions of dollars. Ea is down 2. 5 . Theiraid they will close visceral videogame unit and release a star wars title that has been projected to add to the revenue line. A lot of health care companies, Community Health systems, a lot of back and forth. Stock is down 7 after soaring 11 the previous two days. Before that had fallen 9 as investors try to find out the latest on health care. We dont have any clarity on whether the president supports the Lamar Alexanderpatty murray bill. What changes, he says. Joe looking at the bond market, rates higher in the u. S. Twoyear yield picking up, perhaps some of it on growing expectations the next fed chair will not be janet yellen, will be someone more hawkish. 10 year yield up to 2. 34 . We closed out at 2. 27 last time, so it has been up every day this week. Mexican 10year yield coming down. Remember yesterday we saw the peso rally, thanks to the news that nafta talks are not going great, but at least they are still continuing. So there is still biting longterm mexican bonds. Julia gold is climbing for a Third Straight day. The euro is also stronger. When we got to the ecb president , he will get insights with the qe tape reprint with tapering plant is doing. Is doing. Dollaryen is stronger. We are arguing, watching for the election this weekend. Shinzo abe is expected to win. Then we quickly move on to the dollar you saw that strength yesterday that we will continue to see negotiations even if they are tense. Costingurrency analysts casting their year and the peso forecasts. 18. 7 mexican peso is for the dollar. That was one week ago. A quick look at commodities. Oil gaining but still in the same range, hardly moving, under 52 in west texas. Gold slipping a little bit, under 1300, a fitting move with a higher rates. A little bit of a monetary tightening. Copper, which we have been talking about, performing very strongly, just giving a little bit back at the end of the day, less than 1 . Those are the market minutes. 2. 0 is theump trade goldilocks rally that has risky assets steaming ahead but the promise of tax reform could be too much. Steve mnuchin vowed that if congress cannot pass the longawaited legislation, it will not be pretty for investors. There is no question in my mind that we can get it done. Be securedinvestors as mnuchin is signaling . We are joined by ed keon. Thank you for joining us. So Steven Mnuchin has reasons for political reasons, trying to Push Congress along, but is there a kernel of truth . Ed i think there is some reason to believe the markets are counting on progrowth policies. We are, but i would not expect. O see a tremendous fallback if you set 5 or 10 , but the market could do that for any reason at any time. We have had an incredible run. There may be a kernel or truth of truth. Scarlet is it too aggressive for fiscal policy . Ed there is a balance. If we are at full employment, especially with education, you throw a fiscal stimulus on top of that, and they did infrastructure, the chances are you start to get genuine overheating. We have not seen this in a long time, we forgot what it looks like. But the Federal Reserve will react to it. We will get overheating in the economy. Julia is that what makes you describe yourself as a nervous bowl . Bull . Ed we are well above historical averages. That is true of every asset class in the world. In the better values, and at this point it is not so much the values and the price of in one but the forces direction or another. In the case of stocks, you have Earnings Growth multiplied by expansion and things we talk about every day that are in place. For now the better place to put your money. Do . But what do you seems like there are a lot of investors that change the situation because there is no other game in town, and to be fully invested to buy every dip, but they also look at the charts, whether it is buffetts metrics or other things that say everything is expensive. Is there any place out there that looks compelling . Ed from evaluation point, no. Valuation point of view, no. You need to look at growth prospects, and that is in global stocks, maybe a chill spill outside of the United States rather than inside. Scarlet when was the last time you felt like a nervous bull . What is this reminiscent of . Ed probably back to the 1990s, really, 1999 or so. I had a similar feeling. This was one of those things where there are some folks that turn conservative in 1996, and it was years before we actually cycle back in the stock market. It is not necessarily a good timing tool, saying what is the expected return. It is lower. I think we have a way to go as long as we are getting good growth and in every recession there is no policy mistake. We have a bird further bit further to go. Julia you are on weight bonds, overweight equity, but prefer to sell a regular to basis. Regulative basis. Break it down for us. Ed lets say the biggest portfolio i run have a 70 equity allocation, 50 u. S. , 30 bond. 22 for1 u. S. , international stocks, and 3 underweight on the blind side where we have additional mandates of real estate. We are equally there. Equal weight there. Course,the bond side of one of the big debates going into this year was, are we about to see that bond bear market people have been predicting for decades, that never seems to materialize . We get it here and there, then people are disappointed. What will it take to change a longterm trajectory no door inflation, like the labor market will get some tracks. But it is interesting because to some degree we are discounting some of the data because of the natural disasters. There may be things happening underneath the surface where we say the data cannot be trusted. At the same time you have good growth around the world, low levels of unemployment, it is possible we might see it is a surprise pickup in inflation over the next year. Julia thank you for joining us, from q,. Qma. Estimates, 150g versus 148. The number i am paying attention to is the fullyear outlook. Is 5. 90, so that is something higher than what analysts had been looking for because actually on the 586. End because it is so that might be at least not as high as some had expected, but the stock is up 2. 1 . Ette joe adobe stocks are still shoring soaring. Eps 5. 50 coming ahead of estimates by . 30, and 2018 eps view beating estimates. That is very good. This is bloomberg. Mark it is time for a check to first word news. British Prime Minister theresa may said one thing is certain during a brexit talk, that the in. Will leave the e. U. March 2019. She told parliament the government is ready for either outcome. I can confirm what we are doing is working for the best deal. But it would be irresponsible of government no