Transcripts For BLOOMBERG Bloomberg Markets Americas 2017113

Abigail and we have gains for the major averages, after the divergence yesterday, it was very interesting. We have the alltime high for dow. Yesterday, the big tech selloff, down 1. 3 . And today we have gains for all three of the major averages, some hopes around the tax reform helping. Interesting about the dow up five days in a row, after a winning streak at the beginning of november, another record high for the s p 500, but the p six senseagging, u of a percent. So we will 6 10 of a percent. So we will be paying attention to this. Digging into tech stocks in a moment, but first, oil. Up for its first time this week, up. 5 after the highs. And the opec meeting in vienna, it is said they have agreed to extend the supply cuts through the end of the year. A lot of choppiness around this, oil on pace for its first week since the beginning of october and it is something we will be reporting on. Stocks trading higher, one of them is the big internet stocks. Take a look at kroger, up 12 after they put up a better than ompscted thirdquarter, c up for the Second Quarter in a row. The bar was low, thinking that the acquisition of whole foods by amazon would eat into kroger, that was not the case. It did eat into the wealth of not just the see of him is but into the other billionaire tech moguls. Ets take a look at this chart this represents the wealth of the big billionaires. Higher,seen a huge pop 6. 7 , but yesterday it was down about 3 of the billionaires lost 7. 6 billion into jeff bezos is still the wealthiest person in the world, but on longer worth 100 billion. Something to keep in mind. We will see if he gets above that again anytime soon. These stocks off of the highs, not quite a comeback you want to see after the selloff yesterday. Take a look at the off but look, already going green for alphabet, excuse me, turning red. Maybe it could be an early telephone could happen to other tech stocks after the selloff yesterday. Mark tech stocks fell by 2. 8 here yesterday, today down by 4 10 of a percent. Yesterday, the drop was the biggest since june. They are looking at the bestperforming this year, up 21 , on track for its best year. On november 6, a reached its highest level it reached its highest level since 2001, but still below the peak it reached in march of 2000. The stoxx 600 has barely changed , oil and gas leading the advance. And we are keeping an eye on events in vienna, big day. We will go there shortly. This is what is happening on the data front in the u k, Consumer Confidence falling to a low, delivering a further step back to retailers ahead of the crucial christmas time. The key index falling by two basis points to 12. Matching the level seen after brexit last year. Consumer confidence here. This is the gilt market yesterday. That is the green bar, the yields shooting up by nine basis points, now down a basis point today, earlier it was up four points. The biggest drive since september. News that a deal had been reached on the brexit deal, spain speculation of the economy will be able to whether another rise in u. K. Injure straight. This is the sterling dollar charge, getting back to the brexit conversation we are looking at the today moves, up 1. 2 . Rising for a third day against the dollar. On track for a fourth weekly gain. The times are reporting that dublin and london are close to an agreement on the irish border and moving closer to the brexit deal. European Union Leaders also prepared to offer a twoyear brexit transition deal as early as january, so says the times. In mccoury bank said that this is a game changer for sterling, predicting that the pound will be rising. It jumped yesterday, as i said, because of the preliminary agreement on the financial settlement that britain will pay when it quits the European Union, apparently it has been a struggle. We will talk about brexit later. Vonnie we will. And as for taxes, we may have a final Senate Tax Plan as early as today. The wrangling continues over whether to include triggers to tax increases as Economic Growth does not meet revenue targets. Republicans must have 50 of their 52 members vote yes in order for it to advance. Joining us is the Ranking Member of the house budget committee, representative daniel met of kentucky. Thank you for joining us. Thank you. Vonnie you are concerned about transparency last time we spoke my given we could have a full senate vote today and we could even have the bill come out of the senate, has that concern of the did abated . How it not know could, they are making changes on the fly to make sure that they have 50 votes. I would venture to say there is not one republican who understands what the legislation would really do. The Treasury Department promised an analysis of the plan and what it would do for the economy, curiously they say they cannot do that now. I suspect it is because they would find the same thing that virtually other analysis has, and that is that there is no way that the tax cuts pay for themselves through added growth. So this bill is something that they are trying to sell, basically the way the donald trump did yesterday by saying this does not help me, it will be a christmas present, he has no idea. And i guarantee the American People do not. Vonnie you have been watching the process, how viable is it we get tax reform through this, in order to get a vote here and there and suddenly the whole package, the whole structure has changed . Thing. Is the astounding this is a 5 trillion change in the economy. Think about that, 5 trillion is what is being dealt with here and again without a single hearing, without any public discussion on the details, and again with a very few people understanding how all the pieces fit together and how they would affect the economy. So i think that they probably will be able to squeeze 50 votes out today, there are still considerable differences between the house and Senate Versions and they will have to be worked out. Whether they can work those out, hopefully we will have input, we have not really been involved in the discussions so far we have been totally shut out, we being the democrats. Then i have to come back to approve the one bill. I think the odds are still no better than 5050. Vonnie how pessimistic are you about any deficit hole that this could create . Khalili it will created clearly it will create a deficit, it will create a deficit over the next 10 years. And if you add the additional interest costs, you will be in the neighborhood of 2 trillion added over the next 10 years. There is a serious question as to whether this is advisable or even necessary at this time. Particularly when you get Something Like Goldman Sachs saying that they estimate that the total edition to total addition to gdp over the next few years will be vonnie i want to ask have been evident is the risk of a i want toext month ask how significant is the risk of a shutdown next month . The republicans have said that they will try to come up with the votes on their own. They have not been able to do that since they took over the house in 2010. They always relied on democratic votes, because there are some republicans who will not vote for any appropriations bill. Unless they are willing to have serious negotiations with us about our priorities, which include things like the chip program and it dreamers, and costsharing reductions for health care, then we will have a andous problem on our side they will not get enough of votes for any funding measure to get through. I do not think the risk, i still think it is better than 50 that we will not shut the government down, but i think it is a possibility. Vonnie what is the red line . Is there something you would be willing to see a Government Shutdown over, and do you have that leverage . I do not think the democrat caucus has not said that there is a redline. We have several priorities we want to do with in order to provide votes for this pending bill. Heres the twist. There are members of the Democratic Caucus for who in issue like the dreamers, you could take money like determine on the senate side, he has said that is a redline for him, so if there are 30 democrats with a redline with the dreamers and another 25 with something else, then it becomes problematic for us to get the votes necessary to keep the government it is not just one issue, it is several. We are running out of time. Vonnie can i get your reaction to a report in the New York Times, that perhaps the secretary of state will be replaced in the coming weeks and it would be now mike pompeo who could be eventually replaced by tom cotton. I am not so interested in who the person is, i am interested in somebody that has respect for diplomacy, and understand the needs to fulfill many of the vacant posts that we are losing the career diplomats right and left. We have a serious problem with the halloween out of that very hollowing out of that very important agency. I do not care who it is as long as they care about having a functioning state department, that is my concern. Vonnie representative john yarmuth of kentucky, think you for your time. Checking in on the first word news. Emma chandra. Emma as you mentioned, there is a report that the white house plans to replace secretary of state Rex Tillerson with mike pompeo. The New York Times says that the move will take place in the next several weeks. Rex tillersons relationship with President Trump has been strained. According to the times, pompeo would be replaced at the cia by tom coughlin. It is not clear if the president has signed off on the plan. Theresa may has criticized President Trump for retweeting antimuslim videos from far right groups. The fact that we Work Together does not mean that we are afraid to say when we think the United States has got it wrong and to be very clear with them, and i am very clear that reits weeding from that reach weeding that retweeting was the wrong thing to do. The Prime Minister of russia says relations with the u. S. Are in discussing conditions. Dmitry medvedev said the atmosphere around the relationship is the worst in his memory, despite President Trumps desire to improve it. He says the president is a victim of the washington to russia. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Mark thank you. Coming up, all eyes on oil today as investors weighing news out of the opec meeting in vienna. Futures in focus is next. This is bloomberg. From new york, on vonnie quinn. Mark and i mark barton in the city of london. This is bloomberg markets. Futures in focus, oil gaining and opec is set to agree there production cuts their on their production cuts. It seems like there will be a review of the deal in june. Is that an area of concern are not . I do not think at this point, you know, i think it could potentially be given the fact that gives them an out in the middle of next year, but over all there has been a muted response and the market expected this outcome, so ultimately if russia decides to play nice with opec it looks like we will see oil continue to hold at these levels. When you look at the trend from the longerterm perspective, it does appear oil is on an up trend. Mark 60. What will it take, how long will it be before we break 60 or wti . Dan i think for the Economic Impact when you see the Economic Growth is what i really meant, and when you look at global economies and it continues to see the growth it could lead over to the pop over 60, and if the reductions are adhered to. Mark on the gold front, we are stuck in the range. Big events coming up, the fed rate decision, a possible Government Shutdown, is that what you are looking ahead to to maybe pushes up . Dan possibly, gold has been coiling for the better part of a month. Noween the 12701295 range, we are going back onto the lower end of the range, partially because the equity market is now breaking out to new highs and of puts shortterm pressure on gold, but ultimately when you look at what is going on i think that the race we are in it will be difficult to break out unless we see some geopolitical unrest, something further than what we have experienced at this point. Mark great job. See you soon. Dan deming with todays featured focus. Vonnie thank you. Time for latest Bloomberg Business flash may look at some of the biggest stories right now. Sears sorting, they are reporting a narrow loss compared to last year and their continued to sell off assets and pay down debt. They lost to third two thirds of their market value in the last year. Shares of kroger rising the most in nearly 25 years today, the largest Supermarket Chain in the u. S. Looking at sales that have beaten estimates. They have been feeling the pressure since amazon purchased whole foods, and it sends other chains cut prices. Blankfeinchss lloyd says there is a weakest among the economy without spending a lot of tax dollars. Have a listen. Emma the cheapest lloyd the cheapest form of stimulus that you can provide is peeling away redundant and excessive regulation. Now, what is redundant and what is excessive is often in the eye of the beholder. Goldmanhe also said does not need a bitcoin strategy, he says it does not feel like a currency. That is your latest Bloomberg Business flash. Mark coming right up, still ahead, how Delivery Service is responding to the spiking demands and increased competition of the Holiday Season. A top dhl executive is with us, next. This is bloomberg. This is bloomberg markets. I mark barton from headquarters in london. Vonnie i was going to say, that is something there a little bit, it has been four whole days already. Mark im feeling old. Vonnie ok. The Holiday Season obviously a critical time for Delivery Companies and this weeks cyber monday we saw gains of the 15 . For more, were bringing in the ceo of dhl ecommerce. It is a division of the german logistics giant deutsche to some extent, the figures are random, because we are comparing maybe so forth, characterize the kickoff to the Holiday Season, which was black friday and cyber monday. When you look at ecommerce there is a lot of buzz around it right now, when you look at growth in the industry. What is really driving the growth is how much has been done to make it easier for consumers to shop online. So if you look at the 16 growth, black friday was big yearoveryear, cyber monday big yearoveryear, and we saw 25 increase in the volume of our terminals starting on monday night, so the volume is certainly there. Vonnie to some extent, investments in ecommerce and making a better for people did profit for the third quarter. At what point do you think it will boost departments profits for investment . Lee if you look at our strategy, we are investing for the future so these things we are investing in today, we are entering new markets like thailand and vietnam. We are making investments that will start to pay off for the to the 20251 up range. But it is creating a little bit of drag on the revenue and profit today. Mark adding extra fees for packages, what are you doing for pricing over the Holiday Season . Lee we have opted to not add fees at this point. One thing that is happening to us is we see the volume coming into our network, moving away from the customers that may have hit the pixies. Fees. Re refusing peak they are refusing to pay those fees. It is surprising the how many ups consumers were not aware that they would have those extra fees. It is something we will continue to monitor as time goes on. Mark the other thing i know that the viewers want to know, we reported last month, testing the Delivery Service, the Delivery Service to rival the likes of ups and fedex. What kind of threat do you view amazon as . Has the threat risen since you announced joining dimer earlier this year, do you see amazon is the competition . Lee we do not see amazon as a competitor, we see them as an innovative player in the space. They have driven a lot of the technologies that you see out there in the consumer convenience places you see today. I am writing down the road with my wife and my two millennial daughters on friday and over a couple of hours, two of them were shopping on their cell phones, and they completed our black friday shopping in about one hour and i think we had about 1520 orders. When you look at the technology out there to make it easier for the consumer to purchase online, he will continue to see the type of growth we are seeing right now. So we do not see amazon as a competitor, they are actually a customer of ours, and we continue to serve them and we have had a great relationship with them for many years. Vonnie we have to leave it there. Lee, thank you for joining us. Thank you. Mark still ahead, opec ministers agree incredible to extend cuts to crude output, but more details are being ironed out. 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. Live from bloomberg World Headquarters in new york, im vonnie quinn. Mark and live from london, im mark barton. This is bloomberg markets. Lets check in on bloomberg first word news. Emma moving forward with what could be a final vote on the massive tax overhaul as early as today. That does not necessarily signal that Second Quarter<\/a> in a row. The bar was low, thinking that the acquisition of whole foods by amazon would eat into kroger, that was not the case. It did eat into the wealth of not just the see of him is but into the other billionaire tech moguls. Ets take a look at this chart this represents the wealth of the big billionaires. Higher,seen a huge pop 6. 7 , but yesterday it was down about 3 of the billionaires lost 7. 6 billion into jeff bezos is still the wealthiest person in the world, but on longer worth 100 billion. Something to keep in mind. We will see if he gets above that again anytime soon. These stocks off of the highs, not quite a comeback you want to see after the selloff yesterday. Take a look at the off but look, already going green for alphabet, excuse me, turning red. Maybe it could be an early telephone could happen to other tech stocks after the selloff yesterday. Mark tech stocks fell by 2. 8 here yesterday, today down by 4 10 of a percent. Yesterday, the drop was the biggest since june. They are looking at the bestperforming this year, up 21 , on track for its best year. On november 6, a reached its highest level it reached its highest level since 2001, but still below the peak it reached in march of 2000. The stoxx 600 has barely changed , oil and gas leading the advance. And we are keeping an eye on events in vienna, big day. We will go there shortly. This is what is happening on the data front in the u k, Consumer Confidence<\/a> falling to a low, delivering a further step back to retailers ahead of the crucial christmas time. The key index falling by two basis points to 12. Matching the level seen after brexit last year. Consumer confidence here. This is the gilt market yesterday. That is the green bar, the yields shooting up by nine basis points, now down a basis point today, earlier it was up four points. The biggest drive since september. News that a deal had been reached on the brexit deal, spain speculation of the economy will be able to whether another rise in u. K. Injure straight. This is the sterling dollar charge, getting back to the brexit conversation we are looking at the today moves, up 1. 2 . Rising for a third day against the dollar. On track for a fourth weekly gain. The times are reporting that dublin and london are close to an agreement on the irish border and moving closer to the brexit deal. European Union Leaders<\/a> also prepared to offer a twoyear brexit transition deal as early as january, so says the times. In mccoury bank said that this is a game changer for sterling, predicting that the pound will be rising. It jumped yesterday, as i said, because of the preliminary agreement on the financial settlement that britain will pay when it quits the European Union<\/a>, apparently it has been a struggle. We will talk about brexit later. Vonnie we will. And as for taxes, we may have a final Senate Tax Plan<\/a> as early as today. The wrangling continues over whether to include triggers to tax increases as Economic Growth<\/a> does not meet revenue targets. Republicans must have 50 of their 52 members vote yes in order for it to advance. Joining us is the Ranking Member<\/a> of the house budget committee, representative daniel met of kentucky. Thank you for joining us. Thank you. Vonnie you are concerned about transparency last time we spoke my given we could have a full senate vote today and we could even have the bill come out of the senate, has that concern of the did abated . How it not know could, they are making changes on the fly to make sure that they have 50 votes. I would venture to say there is not one republican who understands what the legislation would really do. The Treasury Department<\/a> promised an analysis of the plan and what it would do for the economy, curiously they say they cannot do that now. I suspect it is because they would find the same thing that virtually other analysis has, and that is that there is no way that the tax cuts pay for themselves through added growth. So this bill is something that they are trying to sell, basically the way the donald trump did yesterday by saying this does not help me, it will be a christmas present, he has no idea. And i guarantee the American People<\/a> do not. Vonnie you have been watching the process, how viable is it we get tax reform through this, in order to get a vote here and there and suddenly the whole package, the whole structure has changed . Thing. Is the astounding this is a 5 trillion change in the economy. Think about that, 5 trillion is what is being dealt with here and again without a single hearing, without any public discussion on the details, and again with a very few people understanding how all the pieces fit together and how they would affect the economy. So i think that they probably will be able to squeeze 50 votes out today, there are still considerable differences between the house and Senate Versions<\/a> and they will have to be worked out. Whether they can work those out, hopefully we will have input, we have not really been involved in the discussions so far we have been totally shut out, we being the democrats. Then i have to come back to approve the one bill. I think the odds are still no better than 5050. Vonnie how pessimistic are you about any deficit hole that this could create . Khalili it will created clearly it will create a deficit, it will create a deficit over the next 10 years. And if you add the additional interest costs, you will be in the neighborhood of 2 trillion added over the next 10 years. There is a serious question as to whether this is advisable or even necessary at this time. Particularly when you get Something Like<\/a> Goldman Sachs<\/a> saying that they estimate that the total edition to total addition to gdp over the next few years will be vonnie i want to ask have been evident is the risk of a i want toext month ask how significant is the risk of a shutdown next month . The republicans have said that they will try to come up with the votes on their own. They have not been able to do that since they took over the house in 2010. They always relied on democratic votes, because there are some republicans who will not vote for any appropriations bill. Unless they are willing to have serious negotiations with us about our priorities, which include things like the chip program and it dreamers, and costsharing reductions for health care, then we will have a andous problem on our side they will not get enough of votes for any funding measure to get through. I do not think the risk, i still think it is better than 50 that we will not shut the government down, but i think it is a possibility. Vonnie what is the red line . Is there something you would be willing to see a Government Shutdown<\/a> over, and do you have that leverage . I do not think the democrat caucus has not said that there is a redline. We have several priorities we want to do with in order to provide votes for this pending bill. Heres the twist. There are members of the Democratic Caucus<\/a> for who in issue like the dreamers, you could take money like determine on the senate side, he has said that is a redline for him, so if there are 30 democrats with a redline with the dreamers and another 25 with something else, then it becomes problematic for us to get the votes necessary to keep the government it is not just one issue, it is several. We are running out of time. Vonnie can i get your reaction to a report in the New York Times<\/a>, that perhaps the secretary of state will be replaced in the coming weeks and it would be now mike pompeo who could be eventually replaced by tom cotton. I am not so interested in who the person is, i am interested in somebody that has respect for diplomacy, and understand the needs to fulfill many of the vacant posts that we are losing the career diplomats right and left. We have a serious problem with the halloween out of that very hollowing out of that very important agency. I do not care who it is as long as they care about having a functioning state department, that is my concern. Vonnie representative john yarmuth of kentucky, think you for your time. Checking in on the first word news. Emma chandra. Emma as you mentioned, there is a report that the white house plans to replace secretary of state Rex Tillerson<\/a> with mike pompeo. The New York Times<\/a> says that the move will take place in the next several weeks. Rex tillersons relationship with President Trump<\/a> has been strained. According to the times, pompeo would be replaced at the cia by tom coughlin. It is not clear if the president has signed off on the plan. Theresa may has criticized President Trump<\/a> for retweeting antimuslim videos from far right groups. The fact that we Work Together<\/a> does not mean that we are afraid to say when we think the United States<\/a> has got it wrong and to be very clear with them, and i am very clear that reits weeding from that reach weeding that retweeting was the wrong thing to do. The Prime Minister<\/a> of russia says relations with the u. S. Are in discussing conditions. Dmitry medvedev said the atmosphere around the relationship is the worst in his memory, despite President Trump<\/a>s desire to improve it. He says the president is a victim of the washington to russia. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Mark thank you. Coming up, all eyes on oil today as investors weighing news out of the opec meeting in vienna. Futures in focus is next. This is bloomberg. From new york, on vonnie quinn. Mark and i mark barton in the city of london. This is bloomberg markets. Futures in focus, oil gaining and opec is set to agree there production cuts their on their production cuts. It seems like there will be a review of the deal in june. Is that an area of concern are not . I do not think at this point, you know, i think it could potentially be given the fact that gives them an out in the middle of next year, but over all there has been a muted response and the market expected this outcome, so ultimately if russia decides to play nice with opec it looks like we will see oil continue to hold at these levels. When you look at the trend from the longerterm perspective, it does appear oil is on an up trend. Mark 60. What will it take, how long will it be before we break 60 or wti . Dan i think for the Economic Impact<\/a> when you see the Economic Growth<\/a> is what i really meant, and when you look at global economies and it continues to see the growth it could lead over to the pop over 60, and if the reductions are adhered to. Mark on the gold front, we are stuck in the range. Big events coming up, the fed rate decision, a possible Government Shutdown<\/a>, is that what you are looking ahead to to maybe pushes up . Dan possibly, gold has been coiling for the better part of a month. Noween the 12701295 range, we are going back onto the lower end of the range, partially because the equity market is now breaking out to new highs and of puts shortterm pressure on gold, but ultimately when you look at what is going on i think that the race we are in it will be difficult to break out unless we see some geopolitical unrest, something further than what we have experienced at this point. Mark great job. See you soon. Dan deming with todays featured focus. Vonnie thank you. Time for latest Bloomberg Business<\/a> flash may look at some of the biggest stories right now. Sears sorting, they are reporting a narrow loss compared to last year and their continued to sell off assets and pay down debt. They lost to third two thirds of their market value in the last year. Shares of kroger rising the most in nearly 25 years today, the largest Supermarket Chain<\/a> in the u. S. Looking at sales that have beaten estimates. They have been feeling the pressure since amazon purchased whole foods, and it sends other chains cut prices. Blankfeinchss lloyd says there is a weakest among the economy without spending a lot of tax dollars. Have a listen. Emma the cheapest lloyd the cheapest form of stimulus that you can provide is peeling away redundant and excessive regulation. Now, what is redundant and what is excessive is often in the eye of the beholder. Goldmanhe also said does not need a bitcoin strategy, he says it does not feel like a currency. That is your latest Bloomberg Business<\/a> flash. Mark coming right up, still ahead, how Delivery Service<\/a> is responding to the spiking demands and increased competition of the Holiday Season<\/a>. A top dhl executive is with us, next. This is bloomberg. This is bloomberg markets. I mark barton from headquarters in london. Vonnie i was going to say, that is something there a little bit, it has been four whole days already. Mark im feeling old. Vonnie ok. The Holiday Season<\/a> obviously a critical time for Delivery Companies<\/a> and this weeks cyber monday we saw gains of the 15 . For more, were bringing in the ceo of dhl ecommerce. It is a division of the german logistics giant deutsche to some extent, the figures are random, because we are comparing maybe so forth, characterize the kickoff to the Holiday Season<\/a>, which was black friday and cyber monday. When you look at ecommerce there is a lot of buzz around it right now, when you look at growth in the industry. What is really driving the growth is how much has been done to make it easier for consumers to shop online. So if you look at the 16 growth, black friday was big yearoveryear, cyber monday big yearoveryear, and we saw 25 increase in the volume of our terminals starting on monday night, so the volume is certainly there. Vonnie to some extent, investments in ecommerce and making a better for people did profit for the third quarter. At what point do you think it will boost departments profits for investment . Lee if you look at our strategy, we are investing for the future so these things we are investing in today, we are entering new markets like thailand and vietnam. We are making investments that will start to pay off for the to the 20251 up range. But it is creating a little bit of drag on the revenue and profit today. Mark adding extra fees for packages, what are you doing for pricing over the Holiday Season<\/a> . Lee we have opted to not add fees at this point. One thing that is happening to us is we see the volume coming into our network, moving away from the customers that may have hit the pixies. Fees. Re refusing peak they are refusing to pay those fees. It is surprising the how many ups consumers were not aware that they would have those extra fees. It is something we will continue to monitor as time goes on. Mark the other thing i know that the viewers want to know, we reported last month, testing the Delivery Service<\/a>, the Delivery Service<\/a> to rival the likes of ups and fedex. What kind of threat do you view amazon as . Has the threat risen since you announced joining dimer earlier this year, do you see amazon is the competition . Lee we do not see amazon as a competitor, we see them as an innovative player in the space. They have driven a lot of the technologies that you see out there in the consumer convenience places you see today. I am writing down the road with my wife and my two millennial daughters on friday and over a couple of hours, two of them were shopping on their cell phones, and they completed our black friday shopping in about one hour and i think we had about 1520 orders. When you look at the technology out there to make it easier for the consumer to purchase online, he will continue to see the type of growth we are seeing right now. So we do not see amazon as a competitor, they are actually a customer of ours, and we continue to serve them and we have had a great relationship with them for many years. Vonnie we have to leave it there. Lee, thank you for joining us. Thank you. Mark still ahead, opec ministers agree incredible to extend cuts to crude output, but more details are being ironed out. 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<\/a> across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Live from bloomberg World Headquarters<\/a> in new york, im vonnie quinn. Mark and live from london, im mark barton. This is bloomberg markets. Lets check in on bloomberg first word news. Emma moving forward with what could be a final vote on the massive tax overhaul as early as today. That does not necessarily signal that Republican Leaders<\/a> will have the votes they need. They still need to hammer out differences for the house version. President trump has nominated a a professorc at kearny game Melon University<\/a> and a former Research Developer<\/a> a good friend told congress failed to secure credibility of its inflation target. The biggest increase since 2009. 1 , meeting expectations. Group for tens of 1 for the first fourth month in a row. The u. K. And the European Union<\/a> are trying to reach a compromise that will allow breakthrough in brexit talks at a meeting this week. The u. K. Need to find a way to promise the eu that brags it wont mean hard borders between Northern Ireland<\/a> and the republic of ireland. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lets get to vienna. Opec ministers are looking to extend cuts to the end of 2018. Investors are waiting for details. Most important how the details will be reviewed in the middle of next year. Us with the top Energy Analyst<\/a> at barclays. We are here in the press conference room. Among ministers is the hinted at before they went to the meeting. Lets get some more perspective with michael, the head of Marketing Research<\/a> at barclays. Thanks for coming on the show. Nine months will be largely in line with expectations. How else can they play a stronger role in terms of signals and sending goes to the market . Michael the job of the joint joint Technical Committee<\/a> is to meet on a pretty regular basis in between these regular sixmonth meetings. They should be letting them do their job and recommend different production levels as they gradually exit from this Market Management<\/a> mode. Going forward, that is what we think is likely to happen as it will gradually exit from the dachshund gradually let the market balance. Theould you say its likely most difficult part of the conversations, the deliberations behind closed doors will be the russians, libya, nigeria . What will be the stumbling block . Michael i dont think its whether or not to extend, its about the messaging to all of us very to all of us observers. For that matter, it matters what level of cuts there are and when they will be reviewing these cuts again. Obviously as you mentioned, libya and nigeria is one of the key areas of discussion. The inclusion of these other opec ministers and observers into the mix as well. Phasing out of this agreement, the exit strategy. We were expecting to hear more from the Saudi Energy Minister<\/a> earlier, but thats not likely part to be be a part of the conversation. Are they moving too far . It was complex putting the deal together, will it become flex to unwind . It took over three months between the algiers meeting for them to, but these numbers. I think they have to gradually say heres the production levels we are thinking of that may allow us to not overshoot or may avoid an overshooting scenario. That makes a big difference because of we go to 70 oil and we stay there for two or three months, you unlock less chinese imports, you reduce demand by maybe even 300,000 or 400,000 barrels a day. It makes the balance look much less constructive when you have builds for as far as the eye can see. We spoke your counterpart a jpmorgan a couple of hours ago and he made a key point about the expectation there would be a significant addition coming out of the United States<\/a> with prices where they are. Where he thought opec, nonopec not taking the . Ould you share that approach are you as bullish on the u. S. Production story . Michael our view is that for next year we see about 1. 2 Million Barrels<\/a> a day of new u. S. Liquid supply. Barrels is0,000 natural. The rest of it is onshore crude. I dont know if i agree wholeheartedly with that statement. Perspective,their they are getting briefings from everyone. They fully realize theres a lot of uncertainty in the forecast now. I think they have to understand that overshooting in terms of prices will unlock these pandoras box and all these other parts. What is biggest risk for prices as we going to 2018 . Ofit a disorganized way unwinding this deal if they start fighting a when and how to pull out . Michael the biggest risk is a risk of overshooting and how would that happen . It would come for venezuelan being 400,000, 500,000 barrels lower a day than it is now. Any of these countries could take a turn for the worse and create a very tight scenario a structural change in the future outlook of the market place. They need this flexibility and i think they understand that. Will opec plus be able to respond to situations like these with Clear Communications<\/a> and action as well, bring everyone together and increasing production based on production in the market. They say they are in constant communication with each other. ,f something terrible happens we have been talking mostly about bullish possibilities. Lets say we enter into a china feared scenario or where where global Economic Growth<\/a> takes a turn for the worse. Of course they will get in touch with each other and call emergency meeting at any time. Thank you very much. We will continue to wait here to hear from the ministers to see what it is they have in mind for 2018 in terms of those production cuts. Thanks a lot. We look forward to hear what they have to say. Gripping stuff from vienna. President trump has nominated marvin good friend for the Federal Reserve<\/a> board of governors. The s he shape up shape it up . This is bloomberg. Bloombergsrom European Headquarters<\/a>, i am mark barton. Vonnie victoria street. Mark that is it. Vonnie i am vonnie quinn. This is bloomberg markets. Chip Design Software<\/a> maker synopsis raised its forecast for earnings, even above the most optimistic street estimate. Taylor riggs has more. Taylor it is about future outlook. You can do well this quarter but you want to make sure your guidance Going Forward<\/a> is good as well. Firstquarter guidance, for next quarter, looks like earnings per share on the adjusted basis is anywhere between . 98 to 1. 02 well above analyst estimates of . 84. I like Topline Revenue<\/a> growth, because they are doing 5 to 10 , to 12 Revenue Growth<\/a> on the top line basis, which is pretty good. To 2. 91nce from 2. 88 billion. Analysts are saying they should be able to maintain the strong, stable Revenue Growth<\/a>. What is driving this . A lot of this is the Software Security<\/a> business. Earlier this month they bought black duck software, saying that that will contribute to Topline Revenue<\/a>. Analysts are coming out and saying that the Software Security<\/a> revenue of 350 million by fiscal year 2019, unappreciated in their current valuation. That gives it some room for upside here. Another analyst raised it to a buy with a price target of 100 a share, saying that they can scale this software business. Vonnie we have seen the nasdaq higher today, but we did have the selloff yesterday. How is that impacting todays moves, if at all . The s p 500y in infotech, when you look your today, they have outperformed by five Percentage Points<\/a> or so. Look at even two of the screen. Look at the end of the screen. About 40 year to date. We will take it. And tayloropsys riggs, thank you for bringing us the intel. Much appreciated. Mark time for the Bloomberg Business<\/a> flash, the biggest visit stores in the news right now. In the u. K. , google has been sued on behalf of 5 million iphone users. They claim the company improperly collected of personal data. They bypassed the iphones default privacy settings. Google says the case has merit. Tci Fund Management<\/a> once an investor meeting to be held next th to remove the check remove the chair. Tci is unhappy that the chairman was pushed out of his job, and ydonnds that br leave instead. Legionnaire is planning an expansion with its argentine unit. Norwegian getting a slice of the city and south africa. That is the latest Bloomberg Business<\/a> flash. Vonnie, breaking news . Is said to be nearing a deal to buy at enough. Both stocks are higher. We have had reports earlier on and cvs might get together. This particular report from dow jones suggests that cvs would and would buy aetna and it would be between 200 and 205 per share. This is trumps third of nomination to the fed board. He moved to fill several vacancies. The professor has been critical of the Federal Reserve<\/a> under chair janet yellen saying that the impact of want to did of using was questionable at best. Earlier he joined bloomberg surveillance. We have seen which growth from them. We have not seen the wage growth that is explosive yet. The key point is that Interest Rates<\/a> are too low. Vonnie joining us with what iss bloombergs joining us with more is bloombergs Federal Reserve<\/a> reporter. We know about marvin good friend. Yes spoken to bloomberg several times over the last few years. He likes a rulesbased federal by. A yes, but there is distinction from people like john taylor. He thinks that the fed should make it clear what kind of role they are following and make it clear why they are deviating, but does something you should mechanically follow a rule all the time. Does not think you should mechanically hollow rule all the time. Vonnie what differentiates him from other wouldbe contenders . Jeanna what is interesting about Marvin Goodfriend<\/a> is it is hard to put him in a hawks were doves bucket. He thinks that the fed needs to defend its credibility, but it seems it all to the upside and the downside. He has been critical of yellen, as you said, but he has been critical of the negative Interest Rates<\/a> in crisis errors, meaning he is interested in defending the 2 inflation target. That is an important thing to Pay Attention<\/a> to as we see his candidacy for the governorship go through. Mark he has questioned the impact of qe as well, hasnt taken which makes one wonder at the fed going to do with the , if then the economy rates are barely higher than they are now. Jeanna absolutely, and this is thaton that this he favors negative Interest Rate<\/a> policy, because he doesnt like qe that much, that is really important. Feds the first mainstream person who is in favor of negative Interest Rates<\/a> in such an explicit from over way. We heard in San Francisco<\/a> that it is a tool in the toolbox for last resort, but this is a guy who advocates using negative rates instead of qe, and that is an important decision. Hrk and he adds academic eft to the board, particularly with yellen leaving. And the board looks sparse. There are more positions to fill. Jeanna absolutely. Openll fill one of 4 vacancies and he is really well respected as monetary economist. His textbooks and writings are taught in college classrooms. At the same time, we have these three open spots and the positions could be full of academic economists. Certainly at this moment, it looks like he is going to be an important intellectual leader on the fed. Vonnie thank you for the context. One of our wonderful Federal Reserve<\/a> reporters. As for 17 winds to a close, we will look at this years movers and shakers. This is bloomberg. Live from bloombergs European Headquarters<\/a> in the city of london, i am mark barton. Vonnie and in new york, i am vonnie quinn. This is bloomberg markets. Amazons acquisition of whole foods and the acquisition of is notk and uber it over yet. These are all business and technology. A list of 50 individuals who drove the conversation. Businessweek editor megan murphy joins me now. May i say that you are one of the people who drove the composition this year . Drove the conversation this year . Megan i dont think so. One way we make this different from the usual lists you see is not the usual suspects, but the people who defined 2017 in the way your Business Impact<\/a> and made a measurable impact on humanity, all of us, across different fields of an argument, cap, to politics, of course. As you know, it is a year dominated a lot by that conversation. Vonnie as much as i would love to talk about taylor trump megan he is on the list. Vonnie any number of choices. Megan we wanted it to be things done and legislative achievements we do have a list, nikki haley, and with news it is possible that trump is looking to shift Rex Tillerson<\/a> and move nikki haley from the u. N. Murkowski,ns, lisa instrumental in blocking the repeal of the Affordable Care<\/a> act, known as obamacare. And scott pruitt, who as head of the epa has rolled back a lot of the environmental regulations put in place for president obama. Vonnie im glad you are here. We got a statement from senator john mccains office that he is a yes on tax reform. After careful thought and consideration, i am for the tax reform bill. This legislation, though far from perfect, would boost the economy and provide tax relief for middleclass families. Is this regular order that he promised . Megan this bill has not been conducted in regular order. What is in the bill is difficult for washingtons savviest lobbyists to look at. We should be emphasizing the process and there are things in the buildup in the bill that the fabric. How religious groups act in this country. Im not surprised by the john mccain statement. What is interesting to me is where the democrats will try to mobilize and it is difficult to get traction against this bill even though it has easy attacks in terms of shifts benefits to the wealthiest in society and some of the passthrough entities as gotten better as we have gone on. It is not over yet. That is a key win for the president. Blocked theat repeal of obamacare. And canand he has heft bring other votes with him. Megan the has the credibility in the senate that has been missing among other members. Mark getting back to the bloomberg 50 well done, by the way five categories, entertainment, business, politics, finance. Isore i get to tech, what the most difficult category to fill, to choose those that you nominated . Megan i think when you are looking across 2017 in terms of hasstandout year from it been defined by the political conversation, and one thing i want to note, in our business and other businesses, it has been defined by metoo and women coming ford and speaking about Sexual Harassment<\/a> incidents in the workplace, and we have three women who were instrumental in the Harvey Weinstein<\/a> case, mcgowan, whorose were instrumental in the tidal wave of allegations against him, and has prompted a True National<\/a> reckoning on this issue that we see continuing to royal today and tomorrow and into next week in the weeks to come. Mark on check, how did you suree elon musk, im that wasnt too difficult. Googles stan green stands out. Tech, we didnt want this to be the usual suspects, but it would be almost impossible not to put elon musk on the list this year, both in the rocket space and with Driverless Cars<\/a> from what has happened with tesla. Huge truck is going to be fascinating to watch. Also on the list with jeff bezos , who has looked at reshaping not only the Media Industry<\/a> and amazon but with the move into the grocery sector and what he is going to do any knockon effect and how we all shop and consume what we do. That is what we looking for in and we are currently probably single that people not only from 2017 but the once you watch in 2018. Vonnie cannot wait to get the youe, and for the order, will have to wait for the new stance. Megan murphy, thank you. Mark coming up on the european close, less than 35 minutes wait till the end of the thursday session. The new three minutes away from the dust 33 minutes away from the end of the session. This is bloomberg. Mark 30 minutes left in the trading day in europe today. From bloombergs brandnew European Headquarters<\/a> in the city of london, i am mark barton. Vonnie and stunning it is, too. From new york, im vonnie quinn. This is the european close on bloomberg markets. Mark here are the top stories we are covering from the bloomberg and around the world. Firesminister theresa may back to President Trump<\/a>, slamming him for retreating a farright political figure in britain. Well the latest controversy distract her from delicate brexit negotiations . With Global Equity<\/a> markets still hanging around records, where are the top opportunities for next year . Should investors be into japan or india . Nangle, guest is toby global head of asset allocation. 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