Air force did not report about Devin Patrick kelley, who assaulted his thenwife and stepson while serving as an arab and. Defense secretary jim mattis as directed the Inspector General to review the circumstances of the kelly case. Election day could test the political influence of President Trump. Showrginia, polls democratic Lieutenant Governor edge overs a slight and gillespie, an adviser to former president bush. In new jersey, the democratic challenger to Lieutenant Governor kim kuan by all is expected to win large margin. In london, british lawmakers will be allowed to see Brexit Impact studies within three weeks. Last week, it was called on that the Government Research be showed to members of the brexit committee. 24 hours a day, powered by more than 27 hundred journalists and analysts in over 120, over 120 countries. Julie live from bloomberg World Headquarters in new york, im julie hyman come in for julia chatterley. Scarlet im scarlet fu. Joe im joe weisenthal. Have turnedstocks lower. The 10 year yield is down. Joe the question is, whatd you miss . President trump has dow back his rhetoric, saying that north korean dictator kim jong uncould kim jongi should come to the table, and make a deal. Troubles take the spotlight with thirdquarter results as shares of the company are trading below the ipo price. Is there more pain to calm . Pain to come . Today and soul President Trump struck a different tone from previous fiery critic on north korea. Heres more from seoul, south korea. Donald trump said it is time to stopith urgency north Koreas Nuclear and missile program. He called north korea worldwide problem many said it makes sense for pyongyang to come to the table and make a deal. That being said, trump said the united dates stands ready to use the full range of military options if needed. Trump says it south korea will order billions of dollars worth of equipment from the United States which he said could help trade deficit it has with seoul, the doubled over the past five years since the koreau. S. Free trade agreement in 2012. On china, which is Donald Trumps next stop on this 12 asian tour, he says we will find out soon, how helpful the chinese president has been and will be, on north korea. Stephen engle, Bloomberg News, seoul. Lets look at the administrations options when it comes to north korea. Is the seniorr director of the korea society. Stephen, great to see you. Heard a softer, kind of donald trump. You think it will have any effect when it comes to defusing tensions . Struck the right know, especially with the South Koreans who were concerned about unilateral action. It is certainly a softer approach and it is one that will play very well with his asian partners. Is there a scenario in this world, in which we have direct talks with north korea . Stephen there is a scenario and saying come to the negotiating table and we will bargain away. Will north korea do that . It seems to most analysts that north korea will give that up. But it seems that kim jongil and is building up his arsenal so that when he gets to the bargaining table he will have maximum action. The progress is not so much been in terms of a new tact, but more attitude and relationship wise. Trump seems to be listening to the South Koreans more. That is something that the South Koreans wanted. He came off the line in tokyo where he stood with Prime Minister shinzo abe ended take a harder line. Now we will see about china and whether the president commits more cooperation remains to be seen. Trump has backed off the threat agreementso the seems to be in little better standing. Joe trumps trip to asia, overall, so far. What is your take on it . So far he has been more restrained. He has acted more president ial. He has not much done more he has not done much more than proffered u. S. Arms sales. He is not standing strong on the trade issue but he is calibrating. Hes listening to his advisers. He seems to be taking a gentler tone and seems to be not making it a personal message against kim jongil and read and that is probably pretty good advice to ratchet back tensions that are high in the region. We need to scale is back. But remember there is three carrier groups in the pacific right now. That is unprecedented and it is a show of force that stands behind those diplomatic words. Scarlet is that the reason why unhavent seen kim jongi fire any test missiles . Stephen yes but thats not to say they want to test again. We are concerned about preparations for more tests. He may wait until trump is outside the region. He may test when proposition the region. There is still a long part of the trip ahead. When we talk about his meetings with fairies leaders, we dont talk much about public sentiment behind of those leaders. Im curious, i guess it is less relevant in china, what public sentiment is like. But when youre talking about japan and south korea, what has public sentiment been like . Relationship the sentiment and japan is strong because of the strength of the relationship. South korea has been different. There are those who support the United States, and the alliance is strong, but there are those those whoid have said no more, no trump. And those are and there are also concerns about going bilateral. Joe what do you expect, substantively, to be the highlight of the next leg of the trip . Stephen the white house has already said china has complied in terms of sanctions against north korea. However, most of what happens in beijing will be a show of lights. The president will try to charm trump. Charm seems to work on trump and he seems to have a soft spot for the president of china. Scarlet we know where we stand on north korea, where at least things are not getting worse. When it comes to trade, what is his most valuable leverage with china, japan and south korea . Interesting, is incremental. In china, we will see. Willie take the trade message take the will he trade message stronger . Stronger tradeed with the u. S. But it doesnt seem he has walked away from tokyo or soul with any dramatic improvements on that front. Coming away from this trip, it is early still but can you foresee what the big accomplishment will be, or is it just Relationship Building . Stephen a lot of it will be Relationship Building, and there will be critics who say that he didnt come back with a lot of deals, but he is setting a tone that is different. Theyre talking about indopacific unity and that stands in opposition to china. He could also cite the United States as an alternative to china. He passed on that both in japan and so far, and south korea. He does have that deference to is coming up the Party Conference looking stronger and trump understands that. He is a transactional president. Stephen, thank you so much. Coming up, before he became the most prominent target in saudi anticorruption crackdown, we have comments from the crown prince. This is bloomberg. Scarlet whatd you miss . Saudi arabias corruption crackdown is widening. The Monetary Authority ordered banks in the kingdom to freeze the accounts of dozens of are not undero arrest. The central bank has put 33 billion in wealth at risk for the richest detainees. The Group Includes prince allah wid. Eric, you met with the prince in the desert . With the prince on a couple of occasions. I had dinner with a month tuesday night on thursday night, the difference being that on tuesday night it was in riyadh and on thursday night we were in the desert week as all will waleed has a desert camp in saudi arabia. And it is not just a dinner. You are often witnessed a traditional saudi customs and ceremonies, and i was once again. A long line of bedouins came to the prince to pay their respects and ask them charity. Among his favorite topics as u. S. Tall u. S. Politics, and he loves to talk about tech stocks, as well. He is an investor in twitter. T. Talked about lyf , did he give any sign that he was only days later about to be arrested in this widening anticorruption probe . And the answer is, no. No sign whatsoever. Scarlet were his interests aligned with the crown prince . Eric it sure seems that way. Most recently, saudi arabia announced it would allow women to drive. This is something that al walid and supported. And also, he lent his support very publicly to the crown princes Economic Vision which saudies reducing dependence on oil revenue, closing the budget gap and attracting more Foreign Investment. So yes, superficially. There was Something Else going on. The charges against him, according to a saudi official who spoke with number, our money laundering, bribery and extortion. Pretty general. We dont have any of the details. All the other people arrested are charged with similar charges as well. Number ofe are a different charges. We have yet to see whether there is due process in saudi arabia, whether he gets a fair trial, whether he gets adequate representation. It is not the american justice system, that is certain. Joe when of the details in your piece that stood out was that the prince was a vegetarian, which you thought was interesting enough to include in your piece. Including those experiences, in terms of dining with him, what other things might surprise people about him . Eric this year a month of food when you dine with him. There are always for cuisines from which you can choose. Saudi, lebanese, western, which is effectively french and italian, and diet. He is a test with his calorie want and always lowcalorie food. He ichiro heard, he eats fruit, he needs almost nothing in the way of desert. He insists on exercise every iy, and these things picked up while visiting with him on a number of occasions in saudi arabia, traveling with him on a number of occasions in england. Not that think you would find out, in your first meeting. Harvested, intentionally and unintentionally, the details over a span of years. You had a said farreaching a kate a farreaching discussion during this most recent visit, did you talk about saudi politics . Eric no. It was the day that amazon and google reported and we were, in fact, watching Bloomberg Television and talking largely about tech stocks. The conversation drifted to u. S. Politics, brexit, and populism, and he has a constructive you of donald trump and he has ever since trump was elected. That is something i covered with him in an interview yuriko. But beyond that, no, we didnt delve deeply into saudi politics. Everything i have picked up from him, verbally and otherwise, nogested no disagreement, dissent, if you will. The big thing in saudi arabia these days, big thing doesnt quite come close to describing it, but it is Free Expression and dissent. The countrys modernizing its economy to break free of the and it isf oil, trying to attract Foreign Investment and technological expertise. Scarlet thats what the big conference was all about. Eric and it is liberalizing some social norms to allow women to function more along the lines of what they are able to do elsewhere in the world. The what isnt on the menu is Free Expression. And that perhaps is the dividing line between al waleed and the crown. He is a nephew of the king. The late king abdullah, who was succeeded by king salman on in 2013, was also prince al waleeds uncle. Was a favorite of prince abdullah. He does not have that kind of connection to this king. King managedthat the network of royalty the way previous kings had. There were a number of Different Power Centers and stability was achieved by allowing them to compete amongst each other, like warring tribes. But the result was to calm the waters. But this king is taking a totally different approach. It is all about the consolidation of power in the crown princes hands and as a result it creates conditions whereby he might feel more other camps of influence, if you will, within saudi society, than the previous king and his children might have. Schatzker,ik interesting perspective from his years of reporting on the saudi royal family. Starting tomorrow, we begin a here onshow bloomberg and i will be anchoring it. 12 30 p. M. Morrow at new york time and this is hiq. Erg etf Oil Production will grow much faster than expected over the next four years. We break it down. Rum new york, this is bloomberg. Julie whatd you miss . The World Outlook report released this morning forecasts that Oil Shale Production will surge ahead. If youre break it all down with us is my colleague alix steel, our resident shale expert. They had to raise their forecast 56 from shale Oil Production. Alex it was a real interesting take because they finally believed the productivity we have seen in the shale sector is temporary. And not if you look at the your to your chart, it is u. S. Oil versus production growth. Aroundte line septemberdecember of 2016, you had a decline in opec production and you ended up having an increase in u. S. Shale production. Julie production growth, just to be clear. Lix it puts opec in a bind because the more they cut, the more shale is going to grow. And this is their admission of it julie or it julie so, they are controlling what they cant, which is their own production. So far, the market seems to like what theyre doing and their commitment, the adherence to it. If you look at the shape of the oil curve, it is encouraging, right . The is the brent kurt and white line shows have brent crude has gotten much more expensive. The white line is what is happening at the moment. The blue line is a month ago. So things have changed very quickly here. It is a lot less extreme than what we are seeing right now. X thats a really interesting chart for me, inause you have devaluation the front months because of expectations that you are going to cut Oil Production from opec. But it is flat. It has not really moved at the backend. If the two dollars a barrel, and thats because you went up having u. S. Shale producers hedging read opec cannot afford to get that back end of the curve up. Hedging,mentioned getting into my chart here. What does this mean . Lix this is basically merchant short positions at the end of the day. It puts pressure on the forward oil price. You can see how it nicely peaked there a few months ago, and now we are seeing a little bit of a rebound. , 80 90 hedged for next year. They will press can go to 20 and they are still selling it at whatever they hedge to that, i am guessing at around 50. Neutral exploration isnt hedged at all and neither is continental because they want to take advantage of any monster oil rally. But those who are hedging, they are in the money. Two companies that hedge aggressively have a pattern of always hedging aggressively, and other Companies Want to ride the wave . Lix continental got beaten up for not hedging in 2014, and he doesnt care. Moreer has always been conservative and once they got rid of their debt they really want to protect their cash flow and production, so it is a really interesting point to make. Scarlet you pick your strategy and stick with it, essentially. Alix 70 come i think is what he is looking out for oil. A reminder to join alex on thursday on an hourlong special about the rise of shale how it has changed the u. S. Economy. Thats a 9 00 on thursday. The s p and nasdaq are moving modestly lower. York, this is bloomberg. Scarlet whatd you miss . Star littleton, and the 10 year yield down for the fifth straight day come on track for its longest losing streak. Im julie hyman in for juliette casserley. Joe we want to welcome you to our closing bell coverage every weekday from 4 00 to 5 00 p. M. Eastern. Scarlet lets get you started with our market minutes. A little dip inequities. Dow finishing with little change. Julie it is a record. Scarlet there you go. For now. Before it settles, it looks like it is in the plus column for the dow. Little changed lower for the s p 500 and nasdaq. A lot of talk in deals, and it continues today. Ggp possibly taking it private. Ggpting a nicep lift lift. G a nic ggp getting a nice trip advisor down by 23 . Disappointing forecast their. There. Avis lowering the high end of its forecast for profit and sales because of hurricanes, citing the hurricanes that some thought would help instead of hurt the business. I feel like the hurricanes have been this allpurpose excuse for companies. Joe lets take a look at the Government Bond market starting with the twoyear and 10 year. We see the shortterm of the market, the twoyear yield up a little to 1. 63, while the 10 year yield is down a little bit. My next chart looks at the broader 210 spread, and we are getting flatter and flatter here. The lowest since 2007. Of course, historically, if we were to invert those frequently signs efres depression recession signs. I have never seen it perfectly clear as to what is going on, but this is starting to get a lot of peoples attention. 8 Straight Days of flattening, we are seeing. It might explain some of the financial stocks. Julie yes. Most definitely. I want to take a look at what is going on in the currency market. Seeing some strength in the dollar against the euro, the yen, and the pound. Across the board, not seeing huge swings in currencies today. I want to look at a longerterm chart of the south korean won versus the japanese yen. This is one of the ways to measure the risk aversion or Risk Appetite surrounding the Korean Peninsula since presumably if tensions heat up there, that can affect currencies. Is risinghat the won versus the yen, it seems to indicate that at least right now,