333 with nine abstentions on that resolution. The crisis has left people dead 600,000 toand driven neighboring bangladesh. In a session that ran 20 minutes over its allotted hour, Supreme Court justices peppered both sides with questions and dropped each other as they debated whether a baker bakeries trumps of speech rights freedom of speech rights. Bakers firstthe amendment claims of artistic freedom against the antidiscrimination argument for the Colorado Commission and the gay couple of the baker turned away in 2012. This is bloomberg. Julia lives, in new york, im julia chesley. Joe im joe weisenthal. Julia the s p, a brief tech rally. Joe the question is a whatd you miss . Why the inclusion of the alternative minimum rate was going to leave many tax firms with higher bills. Conference,media Mark Thompson joins us. And wall street banks on the wrong side of the law . Whether jpmorgan and others have played a crisis to attract business from hedge funds. Whatd you miss . Many are trying to read the tea leaves on the economic outlook. Bank of america and Merrill Lynch says the big story will be over inflation. That it is further tightening in the labor market. Joining us to discuss, the head of u. S. Economics. Great to have you. Talk about the rebound you are expecting and where does that put us versus the Market Pricing of what it does next year versus what the fed hopes. Our review is pretty simple. It is not going to be dramatic. Trend,going to see a that we think it comes amid labor market tightening, unemployment having it handled by next year, even though the relationship has flattened we think it is relevant. We are going to see dynamic start to play out. Sense, if we get unemployment into the inflation, people would have guessed with unemployment falling we would have guessed we would have seen inflation already picking up more. What is it in this Unemployment Rate that will be different . It is all relevant. People have been clawing for this for a wild. You should see these dynamics play out. They really disappointed this year. Degree of tightening. It is been a steady downward trajectory. Havee pretty sure they do a three handled. That relationship could start to play out. And what everybody has been talking about, these idiosyncratic issues driving down inflation, we are starting to see those reverse. We have returned to a more trend ,ike premarch of this year which should continue. Think the that we curve is simply a sleep. Caseat if that is the what is preventing it from falling asleep again . Thatleep in the sense there were other factors that offset the relationship the phillips curve would suggest. Structure. E that is where the key question is. How forceful are those elements . Play. Are going to be in the way we think about it, structural factors are still there that prevent a faster acceleration. It doesnt start the trend higher. It will be higher in the Unemployment Rate falling. Julia 4 hikes next year. What do you see . 2018 is hikes for reasonable. It is certainly possible they attempt to go faster if they see evidence inflation is accelerating and reaching the 2 target. It is not just where they are relative to the dual mandate. ,ne of the things we learned the fed was motivated by the ,act that with every high financial conditions eased and the tight end. Why not keep going in that . Reform, iferning tax we see a surge in the money that is overseas repatriated into u. S. Assets, we will see a 10 rally in the u. S. Dollar. I was looking at the headlines missing it is going to be the worst year in a decade, super divergent views. That is going to do the work for the federal reserve. How are you factoring a tax reform and Dollar Strength or weakness into your numbers . Important point when it comes to thinking about how tax reform plays into the economy. It is not just simulating investment or job creation. How do markets respond . Dollar yields increase, what does that mean for how the fed is going to handicap their hiking cycle around it . For the fed point of view, i do not think there is a gut reaction. They want to determine how is that playing out in the real economy. We will respond to those indicators and potentially change the timing. Scarlet there is a lot of excitement around the tax cuts. What about the effect on the real economy . There is focus on blue states versus red states. How does that show up in the actual growth rate of different parts of the country . That is important. There is a micro and a macro story. I think the way we are considering it in our macro forecast, it is deficit finance forecast. 1. 5 trillion of deficit expansion filtering into the economy. It will matter to a certain extent for increasing investment and supporting consumer spending. We are forecasting 2. 4 growth for next year. Once we understand what it will ultimately look like potential you can talk about another two3 10. Create somep stimulus and boost to the economy. Julia midterm it joe midterm elections next year, yet another policy regime change, is that on your mind . Whats we have to consider these risk factors. It will influence the policies forward into 2019 and 2020. Right now there is a mid geordie , that it is not a super majority, which is creating some challenges. If the outcome is the republicans get a bigger majority, rings could change with reform to Market Regulation or health care. If the reverse happens and quiteats take the house, a lot more gridlock and an environment more frustration in washington. That does feed into the economy as well. We have seen episodes in the past where we had the fiscal cliff. Throughesponded weakening of Business Confidence and investment. Scarlet what is the biggest risk to the economy in 2018 . Downside, you should worry about these global linkages. More to do with trade negotiations would be the biggest concern. Outside of that we see a synchronized Global Recovery, which should be a positive story. You can look a broad and say there are stories of upside risk if the Global Recovery continues to build momentum. , onsignal we are getting the other end, do you see friction developing around geopolitical risks as well . Plenty there have been of friction so far. Thank you. Out, the New York Times is posting a stellar year of growth. We would hear from Mark Thompson of the times. This is bloomberg. Scarlet ubs global media and Communications Conference underway in manhattan bringing together the biggest names in the business. Jason kelly is there. Jason . Jason here is Mark Thompson for the New York Times. Business is pretty good right now. I want to get to that in a minute. The company is doing good. Is alls like fake news the rage rhetorically these days. Is that part of what is driving business . Disruptive, disturbing world, and the recognition that seems to be more en vogue now than ever, bad actors, who make , the publich lies are aware of both of those things. Thatcombined with the fact brands like the New York Times are showing what they can do with the stories they are breaking, stories about the Trump Administration, the Harvey Weinstein story, the strength of the journalism and the trusted nature of the brand is helping. Jason how is that translating to subscriber growth . We disclose our subscriber whichs and the number ,ave been in some quarters which were several years worth of subscribers. A couple of months after i arrived at the New York Times, we were getting maybe 25,000 new subscribers a quarter. Bomb, now, even after the sing numbers and the 90s, 100 thousands a quarter. We have gone over 2 million to our news product. Growing numbers to our new cooking product. I know you print subscribers. Three and a half million subscribers, the biggest in company history. Beforeyou have stated your goal is 10 million. There isnt a timeline. What i was trying to say with that number is the New York Times should have an aspiration which reflects the fact that we are a global news provider. We have 140 million unique users a month. We shouldnt be bound by the legacy media. I was told by many people, periodicals can do a million and a half. We have three and a half million. Twice as many as we had at the peak. Cantot see why we continue those numbers from there. Jason how do you grow internationally . Is it different overseas . Different country by country. We have been working hard in mexico in thelia, spanish language. Using different tactics in different countries. We are doing some events to get noticed, to break some Great Stories in those countries. ,e are trying everywhere adopting new consumer revenue and consumer Marketing Tactics to learn from the best of the digital players how to do international growth. It is working. Weve got strong growth in those countries. Digital revenue could be 800 million . Still on track for that . A greatwill have been year for the growth in digital revenue. We will be in the region of 600 million of your digital revenue. We think that is more than almost any competitor. Buzzfeed. E as much as one of the interesting things is, we are seeing legacy media companies, really beginning to build significant digital revenue. 600 million in the world of digital ownership. Existing in the Digital World also means existing in the symbiotic way with the google and facebooks and twitters of the world. How do you balance that, balance the relationships you need . I think the last point is the most important one. They have Business Models and commercial priorities, and we have ours. What has been encouraging, we have found it hard to be heard in silicon valley. , for some of heat the her rent is things that have platform, noteir intentionally i dont believe, i do not think there are accidental partners with fake news and people trying to target antisemites. There has been a wakeup moment for the big platforms. We have seen some big progress. In much more favorable treatment of subscription publishers on their search platform, an example of a major platform listening and changing practices. Were in a conversation with we are very much believers that these are partners. Benefit from having highquality content and be able to access their users. We benefit to a degree at least from the exposure they give us. I go into those conversations wanting a winwin. I hope they understand, what we do, it matters to public life. Much time when there is so untrustworthy news, and fake badnd so many bag actors, trusted news providers need support from the platforms. To be with you. Thank you for your time. Scarlet thank you. Julia still ahead, a merger in the media space. Stephen lacey joins us with insight on the companys acquisition of time. This is bloomberg. Julia our stock of the hour is one example of a tiny Company Getting a huge lift. Julie hyman is here with the details. Julie this is called digital millionpw, a 70 company. It reflects this trend around cryptocurrencies. You get these various buzzy things that passed through the marketplace. Anything that is tertiary lee associated, they mention it and andsee them become volatile react to whatever that thing is. Company, thef this company says it is planning to launch systems for Digital Mining of cryptocurrencies including bitcoin. Ever since it said that, you have seen gains in the stock. Some company will say we are a company now. Some seem dubious. We are a medical Marijuana Company and now we are digital currency. At least in this, it seems the thing they are offering is kind of within the realm of their existing product. Yes. Subsidiaries, it is doing this particular mining. Mining. Lated to the if you take a look at the bloomberg, what is interesting, whether or not it is actually linked to its mission is irrelevant. Here on the talk is the stock price. I compared it with wells fargo. The number of shares being traded is higher today than the number of shares being traded in wells fargo. Scarlet yellow is dpw. Green is wells fargo. Julie it was nothing until recently. I what to highlight our social velocity monitor. It basically shows you on the top when you have flareups and mentions on social media. There have been quite a few, which shows what is feeding the beast here. It is people saying lets send this thing higher. This is anecessarily good longterm holding. Julia what are they actually doing . Joe the mind generate so much heat. The chip says they need cooling. That appears to be what they are doing. Twice other companies are like this. You have riot block chain, various other companies. We talk about chipmakers but there are these tiny companies. Scarlet it is all signs of a bubble. Joe no question. Scarlet the market closes next. Can see declines all around. This is bloomberg. Scarlet the s p seeing its tech rally ght, the that stays in. Julia chatterley. Scarlet im scarlet fu. Im joe weisenhall. Scarlet we begin with the market minute, a fade in the rally in textures, but all around, we have seen the major indexes give up their gains and lows, ff their session the dow off 111 and the nasdaq earlier ower after gaining. It looked like tech shares were finally rebounding from the out of the best performer. Joe they outperformed but still falling. Scarlet still falling. Look at some individual names here, were still keeping headlines, 24th disney because its a better strategic fit and resents fewer regulatory hurdles. Fox is holding talks with comcast about combining certain businesses with the potential buyers. The murdoches plan or hope to by yearend. On off by 7 understand, toll Quarterly Results miss analysts estimates. Expensiveles of three new york city condo units. Snap. Ays upgraded ross sandler gave the first upgrade and today he turns his upgraded to snap and to overweight and said the worst is behind snap and the company s likely to get back on track in 2018, snap up by 10 . You can see edison international, something julie hyman mentioned earlier, falling 2002. Ost since thousands are fleeing a wildfire in california. The worry is that this utility on the hook for damages. Joe lets take a look at the Government Bond market start twoyear and 10year yield. If you just look there, you see remains the same, more flattening, short end 1. 28 on twoyear and the 10year down to 2. 35 . Here, ook in my terminal i have a chart, it sort of shows the same thing as that, except looking at the 530 spread. It is flattening very at its lowest level since 2007. Down to just a 59 basis points. His is really a pretty extraordinary story right now. Scarlet especially in the last several months. Joe you really see it turning down. Real quickly, i want to give a to greece, below 5 the First Time Since 2009, a comeback. Markable scarlet crisis over. Saying e Prime Minister that with the latest sort of getting past the bailout step, theyre finally putting the era behind it. Hitting this 7. 5 level on the is a pretty significant symbolic milestone on that from to extricate itself the crisis era. Julie hugely symbolic. Definitely s most not over, i would argue. Currency. E a look at a lot deep dive to 978, of debate about what happens with the u. S. Dollar particularly in light of tax reform. I said earlier in the show, the assets could see the dollar rally next year. Most analysts are saying that the dollar is heading for its worst year in next year, decade earish projections piling on top of other bearish rojections, seeing some repatriation of u. S. Money, bringing the money back, an ccounting shift rather than with a withdrawal of actual liquidity. The debate is out there. U. S. Dollar is concerned, and what joe was saying in terms of the move in yields as well. See the dollar index by out what is point going on in the exchange rates, the dollar the dominant currency todays trade. We did see improvements in the trade deficit numbers for canada in october. Wednesday, tomorrow, weve got the bank of canada meeting, 43 january, but we have seen a run of better than expected growth. To see be interesting what the Canadian Central Bank does say, a 43 hiking by january. It will be interesting to see what they say about that better data that weve seen. Finally, on the commodities, lets take a look t oil ticking up a little bit,. 4 , gold selling off and copper 4. 4 , sort of something the interesting thing o watch there, of course, copper frequently seen as a Global Economic bellwether. Metals have done pretty well, keep an eye on copper, those are market minutes. Scape lets bring in the port editor of the nd blog crossing wall street. Its nope for selecting a high quality portfolio and has beaten the s p 500 eight times in the last decade. Lets start with the rotation hat weve all been talking about. Out of textiles, into financials, thats been the main we keep focusing on, whatd all, we are you miss, people tend not to appreciate how much consumer in the mix as well. Tech would turn around but couldnt hold on to those games. The flip side is the rotation the cyclical names, the consumer nondiscretionary doing very well. This group hasnt done well over the last two years. Its lagged the market, also for example, the transport, the dow transport. I know joe will like this. Is one of those really old indexes that broke 10,000 for the First Time Ever and another for example, the Home Builders, Home Builders doing and the, like the financials, that hit a relative the first time in steven years. So were seeing the rotation out of ech, but there is a lot areas that are doing very well right now. Joe and we have this chart as it showing this really big surge in the transport catching upr 10,000 to the performance really of the average. Industrial you also mention in your last answer, the Home Build