Slightly lower. Now we have seen something of a turnaround. Here are some large stocks like apple that have been rising. We continue to watch the developing story of whether at t will be successful in its 85 billion acquisition of time warner. The company is ramping up preparations to fight the Justice Department in court if the agency sues to block the deal. This is according to people familiar with the matter. At t said to be unwilling to part with some of the Networks Like the nn, hbo, and wb studio. The chief Financial Officer john stevens said the timing of the deal, which was originally expected to close at the end of the year, is now uncertain. That is what triggered the selloff and time warner. Down nearly 5 . At t little changed. As a result of the elections across the country, we are watching the drug makers today. Voters in ohio defeated a Ballot Initiative to cap drug prices paid by the state at the same discounted level paid by the u. S. Department of veterans affairs. This will have been perhaps a bellwether for the industry. We are seeing drugmakers raleigh rise. Finally a check on snap. Not just the stock price but the market value. Snap came out with numbers that missed estimates. Shares plunged. They were covered somewhat today after tencent revealed a stake in the company. Than it went then it went back down again. Almost at a level on that with twitter, which is interesting because when snap was going public tried to distinguish this thing with itself separate itself from the likes of twitter. Now they are about the same size in terms of market cap. Julia now asiapacific. President trump tries to get agreements im chosen the u. S. China trade deficit. Wilbur ross announcing a 9 billion worth of deals. The apex forum kicks off in vietnam this week. Previewing his nations goals, Vladimir Putin wrote for bloomberg view. Was support the idea of forming a free trade area. Russia has put forward a number of specific initiatives and hitting unifying the Digital Economy and trade rules, harmonizing technical standards, coordinating strategies for hightech markets, and creating a uniform conceptual framework for the digital space. We will give you a moment to observe that. Lets bring in alex. He joins us from washington. Lets take a step back. For me, lets look at some of the imagery of donald trump arriving in china. A stark contrast to the trip president obama made in the final few weeks of his administration. He did not get a red carpet the same weight donald trump did. Lets talk about the differences in the relationship between the two men. Alex donald trump actually got stairs rolled up to his playing. That was fancy. He has clearly tried to foster a Good Relationship with xi despite his rhetoric against china. It seems to have worked somewhat. It is a very curious relationship between the two countries right now. We are economic rivals. Trump seems to be stoking the rivalry that he talked to his Political Base in the country. But the two men themselves get along great. I dont know what is going to come of all this. They are announcing the deals while they are in china. Maybe 250 billion worth. A lot of it will be nonbinding memorandums of understanding, not actual contracts. It does seem like trump will leave china was something to brag about. I dont know if he is going to north korea though. Is between xi jinping and President Trump whose Approval Rating has fallen to a new low and has seen his brand of politics and rebuke because of yesterdays Election Results. Talk about the kind of pressure the president is under to come out of this reading was something to show for it, especially when it comes to north korea. Alex the white house is insisting President Trump is not a weaker leader. He has got a stronger hand in this relationship as xi does. The Election Results sure seem to cast those statements of the doubt. He was trounced in the election last night, no other way to put it. He does need to come away from china with some of the economic benefits he promised in his campaign. The ones that are not yet materialized. He boasts about the stock market in gdp growth and takes credit for those things, but there is not you cannot attach those advancements to a specific policy that trump has won. The is not accomplished anything in congress yet. Julia tie the two dynamics here that you discussed between president xi and President Trump. There has been concern as far as north korea is concerned, actually the consolidation of power weve seen from president xi might make him less or more reluctant actually to give ground on the north korean issue. But we have seen from President Trump is a more president ial donald trump. Even an olive branch to north korea. We will offer you a path for a better future. If we tie the things together, the diplomacy option more on the table than it was before . Alex he continues to go back and forth on that. This morning he tweeted from china another threat to north korea. Dont try us in all caps ons twitter account. He was not using his iphone at the time. It is not clear really put the approach is to north korea. I think the are getting more cooperation from china than we did in the past, but the fact isnorth korea north koreas nukes are not pointed at china. We really dont know what his incentive is to pressure or put more pressure on north korea. I think it is notable north korea has not yet committed a provocation well trump is in asia. They have not said much about him being there. Scarlet when President Trump spoke in south korea he called on china to cut off kim. The you expect this to be something they do in front of the cameras or only when they are turned off . Alex i dont think you will see trump confront xi in person on north korea with a camera running, no. These are private conversations if they are had it all. Trump has a track record of being more confrontational with foreign leaders when he is not meeting with them. In with the meeting happens the kind of backs down. Tweeting in china. Twitter is not working. Bloomberg white house editor, thank you. Scarlet lets give you a check in the first word news with Mark Crumpton as julia wonders why she was not able to tweak. Tweet. Mark the u. S. Treasury secretary Steve Mnuchin told Michael Mckee about his support for President Trumps proposed tax cuts. Our strong preference is that the Corporate Tax rate starts next year. The longer we wait the worse it is for the economy and making companies competitive. We look forward to working with the senate as the details come out. Mark secretary mnuchin did emphasize the administrations the needeference for to start before the end of the year. There has been a gag order issued in the Paul Manafort case. Manafort and his deputy for indicted on Money Laundering and other charges from the investigation on the russian and once in last years election. The judge has barred all parties are making statements to the public. Anita hill, one of the first woman to publicly accuse a powerful man of Sexual Harassment today criticized President Trump, saying his language makes an attempt to normalize predatory behavior. That bloombergs gearhead conference, she told John Mickelthwait that Corporate Leaders can learn an important lesson from mr. Trumps dismissal of Sexual Harassment. We are now up to 90 of companies, may be over 90 have some kind of policy in play. There has been progress. If you read anything in the last few weeks you know theyr there has not been enough progress. Mark the state department announced new restrictions on travel with cuba today. 80 hotels were placed on the list of prohibiting americas from americans from doing business with them. Visitors to deal with licensed tour operators will be reinstated. The u. S. Is making changes to its export Licensing Program designed to steer Economic Activity away from the cuban government and towards the private sector. 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. Scarlet . Scarlet politico reporting the senate said it planned its tax bill relief on thursday at 11 30 a. M. We heard earlier that the senate would not be releasing its tax reform on thursday as scheduled, another now the latest is it will have an 11 30. We will bring you the details when it happens. Ahead, tencent gambles. And snapchat. What this tencent see in snap . This is bloomberg. Julia breaking news. The u. K. s cabinet minister has resigned. This is a Story Building over the last 24 hours. Concerns about secret meetings over in israel. All sorts to resign. Vince cable this outrageous. Calling this outrageous. The former labor minister saying patels behavior has been worth resigning. Secretarys cabinet got an a week for theresa may . Julia the secretary best the defense secretary stepping down and now priti patel. Theresa may continuing to have to deal with these issues, nothing to do with Critical Issues the u. K. Faces at this moment and that is the brexit talks. Another member of the cabinet bites the dust. Shares of snap over the past 24 hours. Lets look at those. Lets have a quick look at the bloomberg 5317. Snap stock plunging in afterhours trading. Disappointing thirdquarter results. Then today in premarket trading shares spiked. Tencentrise were that but a snake and snapchat. Bought a stake in snapchat. But the steam now coming out of the upward movement in the share prices. Lets talk about what happened. Joining us is an internet analyst at jefferies. A buy rating of 15. Exciting times. Lets talk about what is going on with tencent. All the optimism in the trading this morning, now its kind of filtering away. With you make of tencent . What you make of tencent . They couldve called up and said we want to invest. Yet they notified them of the growing interest. What you make of it . It does not hurt to have dominateike tencent the mobile world and asia. We think there is tremendous amount of energy they can handle in a partnership, or even just simple advice about what is happening. If you look at snaps business, they are largely untouched and asian countries. Largely a u. S. And europe focus. There is opportunity to have a relationship and potentially partner. I think some investors have speculated that could be a larger ownership down the road. Certainly a partnership of this magnitude does not hurt them. It should help them over a period of time. They did not talk about this on the earnings call. There was no mention of it in the conversations we had with the team since the quarter. Julia that is the point. You are assuming this is a friendly gesture. Why would they not have said if this was about information sharing, knowledge sharing . Tencent has had huge success. Wechat. Huge success in this space. Am i being melodramatic to be cautious about their intentions . Brent we dont know what they have said behind the scenes to each other. I think what we have been surprised that in general is snaps for communication with wall street. I have covered technology for 20 years. This company is one of the only companies that adults that does not provide public guidance. Their head of engineering left after the quarter called. They did not address that on the quarter called. I think that is really upsetting a lot of investors that we spoke with today, including a couple of the top 10 holders that said this is not this is uncalled for. I think in general there is a sense that snap can do a better think communicating and i they are in the penalty box now because not only in numbers but their ongoing communication which has been the third miss in a row to the street. All these analysts are trying to put together a thought process on where the numbers are shaking down. We are all coming in well outside the mark. Julia such an important point about you medication. Scarlet the lack of communication and the misses resulted in big takedowns of the share price. Step is followed by doubledigit percentages the day after its results. It only reported results three times since it became a public company. Brent, given that snap does not offer a quarterly or annual guidance, what can the company say about how it is changing its format . Changing the way it functions . What do you know now you did not know two days ago about how it is going to improve its operations . Brent the first thing you have to do when you have a problem is admit you have a problem. Give snap credit for coming out and saying we will have to redesign our user interface. Others have been complaining about how hard the application is the use. I was a prior developer in my earlier life. My 12yearold knows that operate this, but a 40yearold cannot figure out how to operate this system. Scarlet isnt that the point . A 40yearold should be able to operate it should not be able to operate at a younger person can . Brent it should be restricted in its demographic. Is there a bigger way as you age a better way to handle a user interface . We think the answer is yes. They have to change the u. I. Advertisers want better tools. Wall street wants better to medication from them. I think it is a pretty easy checklist that i would think they would be more open to listening to. They are clearly taking point on the u. I. Again, they addressed it. Will this create an air pocket . But if it is that much better they can attract that many more users. The user account was very disappointing. And they could attract more advertisers. This was a good step in the right direction but they have a long list of todo items. We have a pretty clear list i think they can check off. Julia lets go back to tencent. If we look at what they have achieved, they added games, news feeds, monetization opportunities. Do you think there are things that snapchat, snap itself can learn from tencent and adopt . It is not like they are doing something secretive. All that information, all the optionality has always been available to them. It seems to have been a struggle, for is it actually too late . When you look at comparative users the like of facebook has with their product. Brent snap needs all the advice they can get. They need to take as much as they can from these partnerships, potential partnerships and my from them. Facebook today in the u. S. And canada has more users than snap has globally. When you think about the lead and the engagement and what facebook has done, and thats the number one story we recommended to our investors, is that the scale will be difficult to defeat. Our view would be i think they can learn a lot from a leader in the industry. I think they should be more open. They are not communicating to us, but there is clearly a lot of synergy down the road. We just dont know enough details and they have not been public with this situation. Scarlet listen to investors, analysts and perhaps tencent. Brent, think is so much. A bloomberg exclusive michael corrbet will be joining us to talk about the banks Biggest Challenges and opportunities. From new york, this is bloomberg. This is bloomberg markets. Julia it is time for the Bloomberg Business flash, a look at some of the biggest Business News right now. Help billions of accounts were compromised under her watch. She testified at the Senate Committee hearings. To this day, as i understand it, we have not been able to identify the intrusion that led to that theft. We have received files from Law Enforcement that contained yahoo data. We verified he came from yahoo . We dont is that we understand how the act was perpetrated. Julia verizon acquired most of when Marissa Mayer step down. The Justice Department is trying to block their acquisition of time warner. Thats according to people familiar to say their regulators want at t to divest assets. They can to the merger may not close before the end of the year. Merger may not close before the end of the year. Scarlet ahead, the ceo of citigroup live fo on the year ahead summit. He will talk about some of the banks Biggest Challenges after a setback with saudi arabia. This is bloomberg. Distributed ledger technology, verification, the trust built into the code, if you will. One thing is required that wall street has been bad at, and that is standardization. How long is it going to take for the industry to standardize around the private block chain, and which one is it going to be . Because there are, as you know, a number of competing protocols. I do not think we necessarily need to standardize around the industry, but i think we have to come to common standards in terms of what we develop. We have already developed our own technology within citi. We have something we have experience minted experimented with called citi coin. It will use distributed ledger technology, managing money across the firm. As we move forward that is why i say maybe that moment comes when a government actually introduces its own Digital Currencies and forces the industry to match excess ability in and out of the currency. Meantime meantime, you can run it internally. We can. Mike the reason i ask about isndardization is finance going to a point where gets rid behind the scenes, if you will, back room costs associated with clearing the settlement and the capital you have to put up. Jpmorgan, bank of america, wells fargo, etc. , are all going to on that network. Is it the citi network . We move money, about 4 trillion a day, around the world. A lot of that is in some digital or nonphysical f