Execute by, sell, and swap strategies. And check out what is coming down the pie. For twodoes it mean massive giants to have some which money . More and more market share in the hedge industry. Because they are number one in the industry, it is hard to find growth. All straight ahead on bloomberg best. Mike welcome. I am michael mckee. This is bloomberg best. High hopesgan with for brexit breakthrough, hoping that the u. K. Antie. U. Head made some headway. The dream was quickly dashed on monday. The expected breakthrough failing to materialize. Commissionn president john paul juncker. despite our best efforts and significant wereess, we and our teams not able to reach complete agreement today. This lunch started around 1 30 brussels time. Point,rstood that it one theresa may actually broke away from the lunch to call the leader of the Democratic Union that props up her government in london. Washis point in time, it mostly the issue of the irish border. That sort of put in end to any possible breakthrough. What happened today is an indication of the weakness of theresa may. The Prime Minister in the middle of International Negotiation having to break off to call the leader of an obscure Northern Irish party government. This is where we are. The tax overhaul last week was all about getting a bill to the senate. This week, it is about reconciling. We are going to conference. There are more bumps along the road. The house and senate have a number of differences between their bills. The senate has an issue they recently found out is in their bill, dealing with the alternative minimum tax for corporations that would a sickly render moot a number of breaks they wanted to offer to tech firms. So they have to work that out. Everyone seems to be speaking optimistically, but they have a number of challenges they need to confront to make sure the house and senate are on board with the final package. The late change to the bill could bes the 20 amt partially responsible for the recent weakness in tech. Driven by reallocation. You are going to keep the amt and hurt the tech sector. It will hurt the utilities. But of course, the beneficiary the consummate beneficiary or the essentials. Also, there is intense lobbying at this point to fix this. Many people think that the 20 that stayed in was basically by mistake. Theresa may once again facing a revolt from insider cabinet. Prime minister is said to have pressure from senior minister keep aligned with the European Union after breaking away. The eu has given her until the end of the week to present a proposal it finds satisfactory in what an official called the deadline. Are both concerned that tying the Regulatory Regime to close will tie the uks hands in the long term when it comes to negotiating new free trade agreements with other countries, such as the united states. At the same time, if she does not get the dup on her side, that could bring down her entire government. Trump i have determined that it is time to officially recognize jerusalem as the capital of israel. President trump in this case based a deadline, congressionally made, to sign a waiver against moving the u. S. Embassy to jerusalem. It is something president s deal with every six months. Trump was clearly frustrated with facing that deadline after promising on the campaign trail to recognize jerusalem as the capital and move the embassy. Take the step to basically you know i to be the capital. He says the state department will start hiring architects and designers and people to begin planning the move. It is hard to know if this is the first step in what the administration as a broader rollout of the mideast these plan. They say it is not ready yet. This is effectively renders to be aed states not moderator in the process. We have heard from european allies as well but this is not something they see as in the interest of peace. The federal government runs out of money tomorrow night. The threat of a Government Shutdown is looming over capitol hill. Can we expect another lastminute deal with democrats . It is not looking likely. Trump it could happen. The democrats are really looking at something that is very dangerous for our country. The joint resolution has passed. The congress is expected to pass a bill to avoid the shutdown for now, funding the government through december 22. Us to three days before christmas. Not much of a victory, is it . It is in the one sense that they were able to come together and agree to get this rather than push into the brink of friday night or through the shutdown. But it does differ a lot of big decisions. On defensivee caps that wouldh destabilize the obamacare markets. Have a lot of work to do over the next two weeks. Even then, they will be deferring it until january. They will have out a fiscal plan for the entire government for the year. The eu havend broken the deadlock over brexit. News its morning. The two parties have reached an agreement on three sticking points. Citizens rights, ireland, and the divorce settlement payments. Talk to now continue on to trade. I believe we have what we need. Millions of jobs depend upon the future relationship. I am optimistic about the discussion ahead. Now, the really hard work starts. Union is still flexing its muscle, letting it do for now. There may be more problems to come when they really get into the details. Because we still do not know what the solution for ireland is. Whenever that is proposed, we have no idea when that might be, the dup may still cause trouble. A stronger than forecast jobs report. The Unemployment RateHolding Steady at 4. 1 , on almost 17 point year low. Average earnings came in a bit low. The top line number was spot on. Wages are little week, but 2. 5 is edging up. We believe it is moving in the right direction. You have said before that if this administration drove those payroll gains, it would not improve in way people wanted to. We do. We accept that. That is why we need tax a form. We been saying this consistently. Tax reform. We need to allow workers in this country to keep more of what they earn. More importantly, we need to be able to drive more wages to our hardworking citizens of this country, and we firmly believe that tax reform will drive wage growth. We review the as week on bloomberg best, Bitcoin Futures start trading on sunday. Plus, interviews with jack bogle and ken mullis. Bloomberg kicks off a special series on the future of investing. Up next, more of the weeks top business stories. We believe this company is rotten to the core. This is bloomberg. This is bloomberg best. I am michael mckee. Let us continue our global tour of the top business stories with a momentous merger bringing together a drugstore chain and a Health Insurer. Cbs will acquire Health Insurer aetna for 67. 5 billion. That will transform the Health Care Industry in the united states. It will essentially condense a huge part of the supply chain existing between, you know, patients on one end and their money on the other. Will have is an insurer combined with a drug benefits manager combined with a Retail Pharmacy that also runs a lot of clinics and other stores. You are really taking a lot of pieces that exist and almost essentially making middlemen in the Health Care Supply chain and combining them into one big piece. It will resemble Something Like unitedd Health Care Health care in the separate pieces did. Fed namingmond Thomas Barkin to succeed jeffrey lacher. He will walk in the door and become a voting member. On january 1. We do not really have a good feel for his Monetary Policy views. We know a lot about his background. He got a degree in economics from harvard, then went to Harvard Business go. He has worked at mckenzie most of his career. He was the chief Financial Officer at mckenzie. He is now chief risk officer out of the Atlantic Office atlanta office. In the past, he is been treated to democrats, so perhaps you should read something into that. We do not know exactly where he will come from. That is however a tradition of being a hawkish Federal Reserve bank, so it the board of directors was looking for someone like that we may expect that for mr. Barkin. Robert muellers investigation has expanded and is now reaching Deutsche Bank. Ofy demanded documents President Trump his family. Mueller and his team are investigating the roughly 300 million owed to the bank. Why has Deutsche Bank not handed over . The democrats in congress have been pushing for them to release those documents for a while. Deutsche bank has also said always said we cannot. It is a confidential client relationship. We need a formal request from congress or, now, a subpoena. Ously told me they would release these. Pinto has named simon as its chairman after shareholders were said to reject earlier candidates. Who is Simon Thompson . What is he bring . He is an experienced money executive. He has a lot of banking experience, so he is work at Companies Including newmont, anglo american. He is the senior director at tito. Essentially, he has an annuity ticket. Attempts to forge trade talks between china and canada fell apart in beijing with sticking points on both sides. Justin trudeau indicated that while his candidate preference for socalled progressive tax, the two sides would only enter formal talks if they are confident of deal could be reached. Are those the real reasons why these talks are not working . I think we should clarify that exploratory talks between toada and china continue go on. There was an optics problem. It appears the canadians and chinese had their wires crossed before Prime Minister trudeaus plane ever landed. The chinese abruptly canceled a joint News Conference that had been planned for Justin Trudeau and premier li. There was a bit of space lost on both sides. It is an osi systems, which most People Better know as the maker of rapid scan. Is the issue with this company . This company is rotten to the core. Not mincing words. We actually have always think a smoking gun proof that when this company got a key turnkey contract a few years ago in toward 150 million, they paid a bribe or kickback of almost half of that concession. So to me, that is damning evidence. Really the Major Contract they have is a turnkey contract in mexico that is up for renewal next year, probably the early part of the year. The pricing on that is egregious. One contract in mexico is worth about 55 of the companys stock. Stock, you are basically owning it for the one stock in mexico. We reached out to osi. A spokesman declined comment. Warren buffett. Every year at his annual meeting, someone stands up and says what is your Succession Plan . We think maybe we have some hint of who it might be. Who is it . We believe it is greg gable. Been running brookshire hathaway, one of buffetts biggest businesses. Were oner people that the list we think have sort of moved off in terms of what buffets rollers. Moran says great things about greg every time. Have and Charlie Munger praised and as well as gregory able. Affett says he wants successor to stay in the ceo role for a decade. One of the key factors as age. The battle of boxes assets is heating up days after it was reported that the murdochs would defer to south comcast disney. Who is driving it on the box side in what will happen with leadership at disney . I would have to believe it is rupert who is driving it on the fox side. The question is, does bob iger stay . We do not know. We just recently heard bob saying he is leaving. June of 2018. He has not said anything since. I would imagine that if they are going to win these assets, he may stay on for another year just to make sure the integration is ok. This is his legacy. He has to make sure this works. General electric will cut nearly one out of five positions , resulting innits 18 of ge powers workforce lost. To become leaner as customers turn away from foss ill feel based energy sources. They are cutting cross. Theyre cutting losses. It was part of a plan they announced. They are in the process of billion in5 structural costs across the company. Theres definitely a lot of action being taken. How long will investors give plenary . Nobody knows for sure. You need to show results soon. Banks ever merged relatively unscathed from the final batch of post crisis capital rules with few lenders meeting to raise new funds. The committee on banking supervision broke a deadlock curve. 10 years in the making, as this it . What do we see her . What is the in product . There is a, yes, small chance this could go and fall apart. What couldnt fall part world today . We are basically there. It is a deal which the europeans are not happy with. Americans are unhappy with it. Maybe it is a good deal. It is a compromise that no one likes. Welcome back to bloomberg best. I am michael mckee. Be 15,000op to market in trading this week. The cryptocurrency will enter a new phase in its development. At 6 00 p. M. New york time, Bitcoin Futures will begin trading. That is a whole week of exclusivity before its rival gets in the game. Why ahead of the nasdaqs plan to offer Bitcoin Futures next year. Scarlet and julia chatterley spoke with ceo ed tilly about the upcoming launch. We know what it takes to bring new contract in the market place. It is a slow build. We start the futures here. Open interest builds over time. We have reliable settlements. We have oversight from the cftc and her own regulatory department. That builds over time. When i think the institutions will make more moves into bitcoin. It will take time. You started working at sea bow as a clerk. Youve seen it introduce lots of things over the past 30 years. Compared compare and contrast what you see in bitcoin with other products in the past. Theyre very small. Especially compared to the markets we build in the past. To your point, co has a history of new tools to manage risk to the marketplace. Vix is the best example. Week,n the coverage last we set a daily fix options record. One million contracts in the low volatility environment. Bitcoin moved 500 or 400. So this is we are pretty realistic on her expectations, but to your point, this is relatively small. Relatively new. Really, the market is what they are looking for. The Global Benchmark is the measure by vix. The word i could use his cautiousness. Is there an advantage even if it being the first to set up this exchange . It was not a race. Rather, we started about six months ago. From all of the accounts that we followed, they came late in the game. This is just the normal course. An incredible and deep conversation with the regulator at the cftc. Both a collaborative effort to get the cftc comfortable with us being able to move forward and launch futures. Im happy to be launching sunday. Our crosstown competitors will come after that. This was an effort for both of us. Still plenty left on this edition of bloomberg best. Editors take a look at the futures of investing, and up next, more compelling conversations including ken mullis. 10 or 15 of m a, that is a lot of activity. This is bloomberg. A strong economy, and all Member States of the eurozone are growing at 1. 5 for the first time in many, many years. We have a balanced budget overall. The positives included. We have the ability to make the area grow a little bit faster, and for a longer. Of time. Michael that was mario sent tino, who this week was chosen to have the socalled euro group. Beating exclusively with mayor and iteris pitch. Media executives gathered from around the world for the communications conference. Several of the industrys biggest names, starting with stephen lacey, this Company Recently agreed to purchase time incorporated. There is a number of amazing opportunities as a result of this combination. Worst of all, the ability to serve over 200 Million Consumers each and every month. Today,e been emphasizing a size from a very strong legacy 100 70 million unique visitors in the Digital Business and have over 700 million of revenue. That is the hidden gem in this transaction that we are excited about. You have spent time getting into the portfolio of time. Goingo you think you are to keep . What do you think you may look to sell . Stephen when we get the opportunity after regulatory approval, we are going to do a detailed review of the assets in the portfolio. The assets that come from the time side and meredith. Duplicative audiences, and also look hard at the quantity and the frequency of these activities and then make decisions. We really have not they in fact have announced some divestitures that they will hopefully finish before we close. And then we will look at the portfolio in a very holistic way. The fcc compares to be loosening rules. More m a coming. Are you a buyer in this market . We are absolutely looking to execute our buy, sell, and sought strategy. It is a terrific opportunity is result of the loosening of these regulations for us to take a look at our portfolio of television stations and identify ways we can, you know, stick sit with peers of the table and both walk out of the room with a more profitable operation. Because of the Technological Innovations that these rules have had to change. You know, it is just some of the rules that were outdated. Todid it is a welcome result loosen those ownership rules for inmarket. We intend to execute as much as we can. To pick up a set the second station. Maybe a third. It could b