Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power

A lastminute change to the bill is propping criticism for its benefits to President Trump and one republican senator whose vote congressional leaders were eager to flip, bob corker. It would allow real estate businesses to take advantages of tax breaks, providing a multimillion dollar windfall to investors. Senator corker said in an interview saturday that his change in vote had nothing to do with it. So heller is on cop or is on capitol hill with the latest. Taxain to us this news break. Sahil its a combination of what was in the house and the senate bill. It was done uniquely in the final version, but includes a benefit for real estate pass through investors that includes President Trump and figures like senator bob corker. The fact that corker had mysteriously flipped his vote seemingly out of the blue on friday has raised a lot of questions as to whether this was the reason. Senator corker strenuously denies he had anything to do with this provision or it had anything to do with his change of vote. Has said that corker had not asked for this provision in a letter today and that it was a product of negotiations that tax negotiators had been working on for a while. This is caused a bit of a storm for senator corker. David someone mustve asked for it at some place. It seems to pop up in the last possible second. Sahil it was not airdropped out of nowhere. There were elements of it in the house. They did it in somewhat a unique way. Beyond that its not clear to us. I think we will end up t getting answers on it given the level of attention and received, but its not clear why they landed on the specific decision the way they did. Shery the final tax bill will not get rid of that carried interest loophole. How will the gop be able to explain away that this is a tax cut for the middle class and not only for the rich . Sahil they carried interest provision is a tough one. President trump had forcefully talked about getting rid of that and promised to repeal it, including in the presence of the bait. President ial debate. He called some Hedge Fund Managers paper pushers better getting away with murder his words, not mine. Iran into a lot of Republican Opposition here in congress. President trump sibley didnt push for it. They end up keeping the carried interest loophole, but tweaking it from a oneyear hol holdd to qualify but three years. The optics of this bill as the messaging would go is not great in terms of them wanting to make it look like a populist bill. David it looks increasingly likely that tomorrow perhaps we will have this out for the president. Its not the only politics this week. Theres the government still running on friday. The government is scheduled to shut down on friday at midnight unless congress can agree on legislation to keep it funded. House Republican Leaders are looking at a plan to kick the can to about to giveth at this time them more time and to get through the holidays. There are some democrats that are insisting on codifying daca that president obama had initiated and President Trump had canceled with a deadline of march of 2018. Democrats are demanding that be included or some of them are threatening to vote no. Its unclear whether theyre going to be enough democrats to withhold their votes and forced the shutdown. The likely scenario is that Congress Pushes the deadline for about a few weeks and possibly a month in return for the holidays and returned to this whole issue. It is not a done deal yet. We could still see some fireworks. Kapur, thank you. We will bring you President Trump remarks on National Security live at 2 30 p. M. Eastern. David lets get a check of where the markets are right now. Julie hyman is here with the latest. About theyou talk chances for the tax bill being priced into the market, we are seeing a higher likelihood being priced at five investors. All major averages rising to records today and we see a broadbased advance for the major averages on that Corporate Tax rate cut that is anticipated to make it into this final bill and potentially make it through 21 . Ssage of now it cut to all three major averages have been steady throughout the day, but i also wanted to talk about another asset that is getting a lot of bids over the past month or so. We are talking about bitcoin as we get the introduction of the new futures contract at the cme today. We have bitcoin spot that has almost doubled in that time. You can see the price is about 18,005 sunday three. 18,573. If you take a look at the bloomberg, we were seeing pretty widespread last week and its been a weird chart because sunday only has a little bit of trading, but basically you have seen this come down quite a bit narrow. One of the reasons we were perhaps not seeing people arbitrage away the spread between the futures and the underlying is that there was not a lot of shorting going on between the two. Now we are seeing some brokers allow shorting and that may be having an effect. Theres also a Ripple Effect in the stock market that we have continued to monitor here with many of the chipmakers benefiting from demand for bitcoin and chips that power bitcoin mining. That, alsoexample of getting an upgrade today. Theres overstock. Com, which is seen it recently as a proxy which invests in the Underlying Technology for bitcoin. Then we keep getting the sort of random oneoff companies that associate themselves with cryptocurrency in some way. Joe weisenthal spotted one of them. Its a Company Called long fin that just came public. The company has rocketed. You can see the twoday gain in the shares 1400 although it was positive number of times for volatility. That is why you get that choppy looking chart. The Company Issued a press release on friday saying it launcheding something that is a global Microlending Solutions provider that transaction only in cryptocurrencies. Some of these companies have a very firm connection to cryptocurrencies. Some mention it in a press release nec activity like this. David just a wild world out there. Coming up, almost two decades after nestle Mandela Nelson , his favoriteown successor is finally poised to reach the summit of power. We will have the latest. Live from new york, this is bloomberg. Shery this is Bloomberg Markets balance of power. Im shery ahn. David im david westin. Lets check on lon bloomberg first word news with mark barton. Of there are a number unknown fatalities after an amtrak train derailed this morning. Several injuries were reported after the train came off the tracks as it reached an overpass. Some of the trains cars landed onto interstate five. Around 7 40 a. M. This morning, a train derailed. Multiple agencies are responding. The scene, it was obvious that the were some fatalities and there were a a lot of injuries and some people were able to get off the train. Multiple cars and trucks were struck by the cars that went on to the road. The people that were in all the vehicles, even though you see the pictures, its pretty horrific, but at this point, havey in the vehicles failed. Mark all lanes of i5 were closed south of joint saint based lewis joint base lewis mccord. That one of resumed the worlds busiest airports after a blackout grounded more than 1000 flights. The effects are likely to be felt for days. Thousands of people are still strained that the airport. Flights are packed because of the week before christmas and open seats are hard to find. Victims of Bernie Madoff ponzi scheme are set to recoup nearly 600 billion at the start of 2018. The trustee in charge of recovering funds from the scam said more than half of madoffs customers who submitted approved claims will have regained their lost investments in full. 73 of the says that total lost principal has been recovered so far. In austria, Sebastian Kurz has been sworn in as chancellor. The Peoples Party struck a deal with the National Freedom party. It was designed to preempt concerns that austria could stray from the European Union are crushed the welfare state. Sebastian kurz is 31 and is the youngest leader in europe. Global news 24 hours a day powered by 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. David thanks so much, mark. South african Deputy President grippingopponent in a battle for the ruling party to put them on track to become the nations next leader. Heres Michael Cohen with us from johannesburg. Lets start with what happened because we just reported who want, but how sure are we of that . By some reports that there might be a call for a recount. Michael that call for recount has now been taken care of. The result is certain. He won by a very close margin, the closest ever since 1994, but the result is final. Shery what does this mean for 2019 . We have seen some divisions within the anc. I think its possibly the best outcome for the anc. Clearly he got run pay support and he is backed by the labor unions and big business. He is generally seen as a less divisive character than his opponent. Were strong fears that the anc would lose its majority in 2019 elections or possibly even split. I think that risk is abated somewhat now. David what was reaction to the markets . How to the rams and stock market did . How did the rand and stock market did . Michael we saw the ramp up nearly 3 over the past two days. He was clearly the investors favorite and promised to reignite growth and address corruption and create jobs. Clearly this is was the outcome that they were hoping for. Most of the moves came before the results were announced so it was clearly a victory that was anticipated. Shery the anc has been criticized for failing to respond to criticism for president jacob zuma. How are they going to try to regain confidence . Michael there has been suggestions that the presi dent zuma could be removed from office before it second term. Was the three year of his strong supporters that were elected to the ancs top six liters. Leaders. This will make it tricky for him to be ousted. Its going to be interesting to see how the parties new leader deals with this issue. We could possibly see mr. Zuma step down from office early in anticipation of the 2019 elections. Clearly he is not an electoral effort for the party. David michael, thank you so much. That is Michael Cohen reporting from johannesburg. Shery fresh off their big win in alabama, where does the Democratic Party plan to go from here . We will talk with a veteran of democratic politics, Donna Brazile next. This is bloomberg could. Shery lets get a quick check of the major averages right now. We are seeing u. S. Stocks seeing big gains. The dow is up 7 10 of 1 . Every sector on the dow is in the green right now while the s p 500 is also gaining ground by as much. We are seeing a second consecutive session of gains for the stocks with the nasdaq highest on record. This is the last full week before the christmas break. U. S. Stocks gaining ground after that republican agreement on the shape of the u. S. Tax cuts. How this will impact overseas markets will also be a key question. Donna brazil has worked on the campaign of every democrat running for president since jimmy carter, including his Campaign Manager for al gore in 2000 and head of the dnc when Hillary Clinton ran against donald trump last year. , donna goesk through the difficult struggle , what went6 campaign wrong, what it means for the Democratic Party, and more important, what it could mean for the country. We are welcoming her now joining us from washington. Its a different capacity, but its really good to see if. You. Donna thank you so much. David i want to start with a poll that just came out that shows the biggest margin in favor of democrats in the Congress Since 2008. 50 of americans would rather see the democrats running the congress as opposed to 39 . 11 point difference for republicans. Cannot hold up in the fall and what does that mean for the house of representatives . Donna that number is going to grow for two reasons. The republicans have been in control for congress for more than a year and what they have done for the American People is distasteful. You will see the number grow and a new crop of Democratic Candidates emerge all of the country. I believe next fall that we are going to have a tidal wave similar to what we saw in 2006 after the disastrous performance of george bush and dick cheney following the 2004 president ial election. Shery 59 of democrats said they have a high level of interest for the 2018 elections as a compared to only 49 of republicans. In your book, you talk about this pharrell environment in brooklyn. What will it take to Gain Momentum in these elections for next year and also keep them until the election day . Donna first of all, passion is one of those great ingredients in american politics. Without passion and enthusiasm, its hard to get people excited about turning out and get them engaged. What we see now in the Democratic Party is an electric that is engaged. We see people who want to run for office, especially women and minorities. Getee democrats who rarely involved in what i call offseason elections turnout in record numbers. We saw that recently in alabama. We saw in oklahoma where democrats flipped three crimson red seats. We will see it again and again in 2018. Its really good to have the way that your back and not facing a significant headway as secretary clinton faced last year. David theres no question there is passion. We just saw it in the Alabama Senate race, but is it passion for something or get something . Its one thing to be passionate about not having roy moore for your senator, but its another thing to be passionate about something. Where is the leadership . Donna history has taught us that in offseason elections, midterms after president ial season, you are really voting against something. Your voting against the president agenda. We will take that. I believe that democrats have stirred up something new, something exciting, because they want to have a country that we all prosper. Look at the tax bill. The tax bill will hurt ordinary americans. They will not give those who work paychecktopaycheck any additional revenue. I do think the democrats will have a positive message and agenda, one that speaks to our safety and our prosperity. They want to hear a message that will you no unite us and not die us like donald trump is doing today. Shery cybersecurity is a key issue in your book. Is there nothing done to prevent the election hacks of 2018 . Donna no, and thats the reason why wanted to write this book. We know that secretaries of state have taken this seriously now. Theyre getting their security clearances. State governors are also looking to cybersecurity. What is lacking and whats missing is a focus from the federal government. We need donald trump and the republicans running the government to make cybersecurity a number one issue. We need to make sure that the pentagon has Cyber Defense capabilities and the department of Public Security is working with the department of justice in our intelligence community. I learn more about cybersecurity in one year that i have my entire life. Heres what i want to tell the market people. Protect your identity. Ive been hacked by the chinese and now the russians. Im worried about the north koreans. People are worried about a Ballistic Missile flying across the ocean. Im worried about having a cyber attack that we dont know about until it happens. David do you have any reason to believe that this Trump Administration agrees with anything you just said . We are not seen any evidence yet from the president saying this is a priority for him. All we hear about is fake news. Donna look, im an american. When it comes to protecting this country, there is no such thing as a party label. Theres only one thing your patriotism and love for country and the love for our democracy, our way of electing individuals to office. We need to protect our election infrastructure. We need to ensure that everyone has the type of cyber training. I just finished a semester at Harvard University and i worked on a survey on cybersecurity could that survey will be released next year. We are not ready for the next attack and i would hope that as american citizens, not partisan, that we take this seriously and we begin to protect our infrastructure. Shery do you still keep in touch with your people from the hacker house . Are they telling you that we are still being attacked by russians . Donna i keep in touch with as many people as i possibly can. I want to say to the hacker house team that they are the finest americans that i know. They try to protect us and protect our country. , the ones to my scoop man who was always willing and able to help me understand ciber, i stay in touch with him because he is a great american. I want to say to all of our federal officials out there, keep doing your job. We need you on the battlefield. We need you to continue to , ourct our Cyber Defenses infrastructure, our grids come our hospitals. We need better cybersecurity in this country. David let me bring you back to politics for just a minute. 1989 aftertalking in the 1988 the feud, we will be talking about the Democratic Party and have good idea. You had deal seagoing and you had gore and clinton emerging. Who is emerging now from the democrats . Donna i have a list of about 52 of them. Many of them are in the President Trump<\/a> and one republican senator whose vote congressional leaders were eager to flip, bob corker. It would allow real estate businesses to take advantages of tax breaks, providing a multimillion dollar windfall to investors. Senator corker said in an interview saturday that his change in vote had nothing to do with it. So heller is on cop or is on capitol hill with the latest. Taxain to us this news break. Sahil its a combination of what was in the house and the senate bill. It was done uniquely in the final version, but includes a benefit for real estate pass through investors that includes President Trump<\/a> and figures like senator bob corker. The fact that corker had mysteriously flipped his vote seemingly out of the blue on friday has raised a lot of questions as to whether this was the reason. Senator corker strenuously denies he had anything to do with this provision or it had anything to do with his change of vote. Has said that corker had not asked for this provision in a letter today and that it was a product of negotiations that tax negotiators had been working on for a while. This is caused a bit of a storm for senator corker. David someone mustve asked for it at some place. It seems to pop up in the last possible second. Sahil it was not airdropped out of nowhere. There were elements of it in the house. They did it in somewhat a unique way. Beyond that its not clear to us. I think we will end up t getting answers on it given the level of attention and received, but its not clear why they landed on the specific decision the way they did. Shery the final tax bill will not get rid of that carried interest loophole. How will the gop be able to explain away that this is a tax cut for the middle class and not only for the rich . Sahil they carried interest provision is a tough one. President trump had forcefully talked about getting rid of that and promised to repeal it, including in the presence of the bait. President ial debate. He called some Hedge Fund Managers<\/a> paper pushers better getting away with murder his words, not mine. Iran into a lot of Republican Opposition<\/a> here in congress. President trump sibley didnt push for it. They end up keeping the carried interest loophole, but tweaking it from a oneyear hol holdd to qualify but three years. The optics of this bill as the messaging would go is not great in terms of them wanting to make it look like a populist bill. David it looks increasingly likely that tomorrow perhaps we will have this out for the president. Its not the only politics this week. Theres the government still running on friday. The government is scheduled to shut down on friday at midnight unless congress can agree on legislation to keep it funded. House Republican Leaders<\/a> are looking at a plan to kick the can to about to giveth at this time them more time and to get through the holidays. There are some democrats that are insisting on codifying daca that president obama had initiated and President Trump<\/a> had canceled with a deadline of march of 2018. Democrats are demanding that be included or some of them are threatening to vote no. Its unclear whether theyre going to be enough democrats to withhold their votes and forced the shutdown. The likely scenario is that Congress Pushes<\/a> the deadline for about a few weeks and possibly a month in return for the holidays and returned to this whole issue. It is not a done deal yet. We could still see some fireworks. Kapur, thank you. We will bring you President Trump<\/a> remarks on National Security<\/a> live at 2 30 p. M. Eastern. David lets get a check of where the markets are right now. Julie hyman is here with the latest. About theyou talk chances for the tax bill being priced into the market, we are seeing a higher likelihood being priced at five investors. All major averages rising to records today and we see a broadbased advance for the major averages on that Corporate Tax<\/a> rate cut that is anticipated to make it into this final bill and potentially make it through 21 . Ssage of now it cut to all three major averages have been steady throughout the day, but i also wanted to talk about another asset that is getting a lot of bids over the past month or so. We are talking about bitcoin as we get the introduction of the new futures contract at the cme today. We have bitcoin spot that has almost doubled in that time. You can see the price is about 18,005 sunday three. 18,573. If you take a look at the bloomberg, we were seeing pretty widespread last week and its been a weird chart because sunday only has a little bit of trading, but basically you have seen this come down quite a bit narrow. One of the reasons we were perhaps not seeing people arbitrage away the spread between the futures and the underlying is that there was not a lot of shorting going on between the two. Now we are seeing some brokers allow shorting and that may be having an effect. Theres also a Ripple Effect<\/a> in the stock market that we have continued to monitor here with many of the chipmakers benefiting from demand for bitcoin and chips that power bitcoin mining. That, alsoexample of getting an upgrade today. Theres overstock. Com, which is seen it recently as a proxy which invests in the Underlying Technology<\/a> for bitcoin. Then we keep getting the sort of random oneoff companies that associate themselves with cryptocurrency in some way. Joe weisenthal spotted one of them. Its a Company Called<\/a> long fin that just came public. The company has rocketed. You can see the twoday gain in the shares 1400 although it was positive number of times for volatility. That is why you get that choppy looking chart. The Company Issued<\/a> a press release on friday saying it launcheding something that is a global Microlending Solutions<\/a> provider that transaction only in cryptocurrencies. Some of these companies have a very firm connection to cryptocurrencies. Some mention it in a press release nec activity like this. David just a wild world out there. Coming up, almost two decades after nestle Mandela Nelson<\/a> , his favoriteown successor is finally poised to reach the summit of power. We will have the latest. Live from new york, this is bloomberg. Shery this is Bloomberg Markets<\/a> balance of power. Im shery ahn. David im david westin. Lets check on lon bloomberg first word news with mark barton. Of there are a number unknown fatalities after an amtrak train derailed this morning. Several injuries were reported after the train came off the tracks as it reached an overpass. Some of the trains cars landed onto interstate five. Around 7 40 a. M. This morning, a train derailed. Multiple agencies are responding. The scene, it was obvious that the were some fatalities and there were a a lot of injuries and some people were able to get off the train. Multiple cars and trucks were struck by the cars that went on to the road. The people that were in all the vehicles, even though you see the pictures, its pretty horrific, but at this point, havey in the vehicles failed. Mark all lanes of i5 were closed south of joint saint based lewis joint base lewis mccord. That one of resumed the worlds busiest airports after a blackout grounded more than 1000 flights. The effects are likely to be felt for days. Thousands of people are still strained that the airport. Flights are packed because of the week before christmas and open seats are hard to find. Victims of Bernie Madoff<\/a> ponzi scheme are set to recoup nearly 600 billion at the start of 2018. The trustee in charge of recovering funds from the scam said more than half of madoffs customers who submitted approved claims will have regained their lost investments in full. 73 of the says that total lost principal has been recovered so far. In austria, Sebastian Kurz<\/a> has been sworn in as chancellor. The Peoples Party<\/a> struck a deal with the National Freedom<\/a> party. It was designed to preempt concerns that austria could stray from the European Union<\/a> are crushed the welfare state. Sebastian kurz is 31 and is the youngest leader in europe. Global news 24 hours a day powered by 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. David thanks so much, mark. South african Deputy President<\/a> grippingopponent in a battle for the ruling party to put them on track to become the nations next leader. Heres Michael Cohen<\/a> with us from johannesburg. Lets start with what happened because we just reported who want, but how sure are we of that . By some reports that there might be a call for a recount. Michael that call for recount has now been taken care of. The result is certain. He won by a very close margin, the closest ever since 1994, but the result is final. Shery what does this mean for 2019 . We have seen some divisions within the anc. I think its possibly the best outcome for the anc. Clearly he got run pay support and he is backed by the labor unions and big business. He is generally seen as a less divisive character than his opponent. Were strong fears that the anc would lose its majority in 2019 elections or possibly even split. I think that risk is abated somewhat now. David what was reaction to the markets . How to the rams and stock market did . How did the rand and stock market did . Michael we saw the ramp up nearly 3 over the past two days. He was clearly the investors favorite and promised to reignite growth and address corruption and create jobs. Clearly this is was the outcome that they were hoping for. Most of the moves came before the results were announced so it was clearly a victory that was anticipated. Shery the anc has been criticized for failing to respond to criticism for president jacob zuma. How are they going to try to regain confidence . Michael there has been suggestions that the presi dent zuma could be removed from office before it second term. Was the three year of his strong supporters that were elected to the ancs top six liters. Leaders. This will make it tricky for him to be ousted. Its going to be interesting to see how the parties new leader deals with this issue. We could possibly see mr. Zuma step down from office early in anticipation of the 2019 elections. Clearly he is not an electoral effort for the party. David michael, thank you so much. That is Michael Cohen<\/a> reporting from johannesburg. Shery fresh off their big win in alabama, where does the Democratic Party<\/a> plan to go from here . We will talk with a veteran of democratic politics, Donna Brazile<\/a> next. This is bloomberg could. Shery lets get a quick check of the major averages right now. We are seeing u. S. Stocks seeing big gains. The dow is up 7 10 of 1 . Every sector on the dow is in the green right now while the s p 500 is also gaining ground by as much. We are seeing a second consecutive session of gains for the stocks with the nasdaq highest on record. This is the last full week before the christmas break. U. S. Stocks gaining ground after that republican agreement on the shape of the u. S. Tax cuts. How this will impact overseas markets will also be a key question. Donna brazil has worked on the campaign of every democrat running for president since jimmy carter, including his Campaign Manager<\/a> for al gore in 2000 and head of the dnc when Hillary Clinton<\/a> ran against donald trump last year. , donna goesk through the difficult struggle , what went6 campaign wrong, what it means for the Democratic Party<\/a>, and more important, what it could mean for the country. We are welcoming her now joining us from washington. Its a different capacity, but its really good to see if. You. Donna thank you so much. David i want to start with a poll that just came out that shows the biggest margin in favor of democrats in the Congress Since<\/a> 2008. 50 of americans would rather see the democrats running the congress as opposed to 39 . 11 point difference for republicans. Cannot hold up in the fall and what does that mean for the house of representatives . Donna that number is going to grow for two reasons. The republicans have been in control for congress for more than a year and what they have done for the American People<\/a> is distasteful. You will see the number grow and a new crop of Democratic Candidates<\/a> emerge all of the country. I believe next fall that we are going to have a tidal wave similar to what we saw in 2006 after the disastrous performance of george bush and dick cheney following the 2004 president ial election. Shery 59 of democrats said they have a high level of interest for the 2018 elections as a compared to only 49 of republicans. In your book, you talk about this pharrell environment in brooklyn. What will it take to Gain Momentum<\/a> in these elections for next year and also keep them until the election day . Donna first of all, passion is one of those great ingredients in american politics. Without passion and enthusiasm, its hard to get people excited about turning out and get them engaged. What we see now in the Democratic Party<\/a> is an electric that is engaged. We see people who want to run for office, especially women and minorities. Getee democrats who rarely involved in what i call offseason elections turnout in record numbers. We saw that recently in alabama. We saw in oklahoma where democrats flipped three crimson red seats. We will see it again and again in 2018. Its really good to have the way that your back and not facing a significant headway as secretary clinton faced last year. David theres no question there is passion. We just saw it in the Alabama Senate<\/a> race, but is it passion for something or get something . Its one thing to be passionate about not having roy moore for your senator, but its another thing to be passionate about something. Where is the leadership . Donna history has taught us that in offseason elections, midterms after president ial season, you are really voting against something. Your voting against the president agenda. We will take that. I believe that democrats have stirred up something new, something exciting, because they want to have a country that we all prosper. Look at the tax bill. The tax bill will hurt ordinary americans. They will not give those who work paychecktopaycheck any additional revenue. I do think the democrats will have a positive message and agenda, one that speaks to our safety and our prosperity. They want to hear a message that will you no unite us and not die us like donald trump is doing today. Shery cybersecurity is a key issue in your book. Is there nothing done to prevent the election hacks of 2018 . Donna no, and thats the reason why wanted to write this book. We know that secretaries of state have taken this seriously now. Theyre getting their security clearances. State governors are also looking to cybersecurity. What is lacking and whats missing is a focus from the federal government. We need donald trump and the republicans running the government to make cybersecurity a number one issue. We need to make sure that the pentagon has Cyber Defense<\/a> capabilities and the department of Public Security<\/a> is working with the department of justice in our intelligence community. I learn more about cybersecurity in one year that i have my entire life. Heres what i want to tell the market people. Protect your identity. Ive been hacked by the chinese and now the russians. Im worried about the north koreans. People are worried about a Ballistic Missile<\/a> flying across the ocean. Im worried about having a cyber attack that we dont know about until it happens. David do you have any reason to believe that this Trump Administration<\/a> agrees with anything you just said . We are not seen any evidence yet from the president saying this is a priority for him. All we hear about is fake news. Donna look, im an american. When it comes to protecting this country, there is no such thing as a party label. Theres only one thing your patriotism and love for country and the love for our democracy, our way of electing individuals to office. We need to protect our election infrastructure. We need to ensure that everyone has the type of cyber training. I just finished a semester at Harvard University<\/a> and i worked on a survey on cybersecurity could that survey will be released next year. We are not ready for the next attack and i would hope that as american citizens, not partisan, that we take this seriously and we begin to protect our infrastructure. Shery do you still keep in touch with your people from the hacker house . Are they telling you that we are still being attacked by russians . Donna i keep in touch with as many people as i possibly can. I want to say to the hacker house team that they are the finest americans that i know. They try to protect us and protect our country. , the ones to my scoop man who was always willing and able to help me understand ciber, i stay in touch with him because he is a great american. I want to say to all of our federal officials out there, keep doing your job. We need you on the battlefield. We need you to continue to , ourct our Cyber Defense<\/a>s infrastructure, our grids come our hospitals. We need better cybersecurity in this country. David let me bring you back to politics for just a minute. 1989 aftertalking in the 1988 the feud, we will be talking about the Democratic Party<\/a> and have good idea. You had deal seagoing and you had gore and clinton emerging. Who is emerging now from the democrats . Donna i have a list of about 52 of them. Many of them are in the United States<\/a> senate. I dont have a candidate, but im a message for democrats. This is our moment and we need to see is it. We need fresh blood, new energy, new faces because there are a lot of seats that are going to be up for grabs next year. We are going to see a lot more retirements and we need you to step up. I tell my students why you . Because theres no one better. Why now . Tomorrow is not soon enough. Shery new energy on battling Sexual Harassment<\/a> what do you expect . How important do you expect this issue to be in 2018 . Donna many women and some men have come forward to tell the truth. I respect them. We should hear them. Wey should be heard and should believe them. Its time that we respect the dignity of all human beings and not just one sector. We need everyone to know that they can work in as Many Industries<\/a> like the academia, media, and sports and be respected. Thats why this is an important conversation. This is not about pointing figures. Up, is about stepping speaking of truth, and being able to work without being harassed. Shery donna brazil, thank you for your time, former interim chair of the Democratic National<\/a> committee. Plenty more coming up on Bloomberg Markets<\/a>. This is bloomberg. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Shery this is Bloomberg Markets<\/a> the trump Bloomberg Markets<\/a> the european close. Bloomberg markets balance of power. Mark the new route was designed to speed up service by removing passenger cars for a route that is bogged down by curves, singletrack tunnels and freight traffic. The derailment left some of the train cars dangling off the overpass with at least one day one train car falling on interstate five south of democracy House Republicans<\/a> are challenging the senate with a takeover it or leave it spending bill to give the government running another month. The house is moving ahead with a bill that boosts defense the senateile democrats who block it. They wanted to be a compromise to keep the government from shutting down after friday. Appeals judge is retiring in missed investigation over inappropriate sexual behavior. Alice kaczynski has been on the ninth Circuit Court<\/a> of appeals is 1985 read 15 women have accused him of making sexual comments to them or other inappropriate conduct. The british Prime Minister<\/a> theresa may starting a new battle of the European Union<\/a> over brings up. Today the Prime Minister<\/a> will outline a plan for however is a transition will work. However brexit transitional work. She wants to retain most of the benefits of membership. That may cause a fight with the eu over migration and trade. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Shery thanks. 5000 Bernie Madoff<\/a> daily clients will go monday 2008 to discover much of what they thought they held it is multibilliondollar fund was really a fraud. The coin avoided the Court Appointed<\/a> a law firm to recover as much a lost funds as possible. Today the trustees are making their ninth distribution tomato clients. Of madoff clients. We welcome them to bloomberg. Congratulations. More money in the pockets of these victims. How much further do they have to go . Like to get to 100 . With some of the core decisions and where we are, we are not going to quite make it. Were going to get close. Shery what about a 2018 . We expect there will be additional recoveries and hope what can make another distribution. David what is the basis of these claims the were making and how are you guiding all this money back . At the time, it was gone. I think the critical factor here was the length of the ponzi scheme itself. Recoverede people money from war in the scheme for many decades and as a result they did a smart thing, do what was going on. They took their gains and they reinvested and some of the peoples level with us for billions of dollars actually been liquidating their accounts at goldman of their apple stock. Itd been a quick, typical up and down, the money may have gone. They have this long time in which to draw money out of the fraud and then reinvested for themselves, when they sued them, they had real assets. Shery you have big settlement this year from an irish fund. You got some back from the madoff family. It was 685 million in there we have others for around 300 million. The settlement with the family was more not the money involved, it turned out to be about 20 million. With a variety of reasons. The family kept a good deal of it, which was fine with us. Given the fact that there are widows we talking about and children. Was one we result shared with the was attorneys office, is accommodative deal to put together, but is behind this writing we have a good result for everyone. David i want to be precise, this is the principle they originally gave to mr. Madoff. They are not getting investment gains from that. In a sense, they still are victims because they wouldve invested somewhere and made some money. Mr. Picard thats true. You described it correctly. We are returning to them in principle they invested, its a cash in, cash out methodology. In up to 1,000,003 at and 75,000,000,003 , you wouldve gotten back in all the principle you put in. Shery what happens for people invested more than that . They continue to get distributions. Investors saying . 51 on the dollar. Is that still the case . Mr. Picard were now up to . 64, buteen 63 and we have some additional moneys in reserve because of litigation. Because we dont want to be in a position of overpaying people. Money thatbe some will go to these people. So that the distribution amount will go up. David you were holding some in reserve, because their disputes. Who resolves that and how long does it take . Mr. Sheehan thats the 64 question. It could be several more years. He alluded to the ridley gives this taking place in the most important case of litigation is now the Second Circuit<\/a> with this of the statute. We believe we have a very strong and we do think those cases were wrongly decided. It opened the door to approximately 4 billion that we can still go after. Going back to the earlier question, i much more optimistic , and we have a very good chance of hitting 100 . With the reserves that we had, . 70 to 72. 5over cents. In three quarters of the way there, with the potential of 4 billion so you have success on our field. Even with that there are several billion dollars were looking for. You to be at 80 , 85 present. A good chance of 100. Shery the ponzi scheme was nonexistent in 1992, but until then. What happens to investors who made gains before that . Wouldhe was correct, that be true, would have to recalculate the principal balance, money in. The start in the 70s, and the others have allocated to that and testify to that. I think its an illfated suggestby mr. Madoff to i was a good guy until 92, and i got coopted by some bad people and i did some bad things. None of that is proven to be true in terms of the records her testimony of anyone else. I think thats going to happen. I dont think thats going to happen. David what level of cooperation are you getting from courts from overseas, you have to go into court overseas to enforce that . Mr. Picard we have a number of cases pending overseas. And like year, we had some luck and we havent been as successful. Case in israelng and a couple of others. That we willl recover some significant amounts. David any jurisdiction particularly of strippers obstreperous . Mr. Picard that i know of. Mr. Sheehan theres a resistance to american legislation. We have lawyers and 33 mr. Sheehan theres a resistance to american legislation. Jurisdictions, just to counter the opposition. They have researchers of privacy in a number of other things. David i will leave with the larger question of how we got here. In 2700 2008, this was triggered to new regulations that we have with the banking industry. With a protected today . Mr. Picard theyre only as good as the examiners, those who are the formatting rules and regulation. When they dont go for a good job when they do in session, they miss things like this. I think the rules and , itstions are in place just a function of how they are put in place. Shery could this happen again now, given the advance of technology . He was sending out statement through dotmatrix printer. If you cant, like if you can get realtime information about your acount, that should give you hint that something isnt right. As we speak, we read about press about how schemes that are ongoing. Mr. Sheehan theres a ponzi scheme going on right now. I guarantee that. It escaped the gaze of forever we should be looking at it. Thereve people want that kind , its been going on for a long time and you cannot regulate against greed. Shery any sectors that are more susceptible . Mr. Sheehan the market is certainly one of them. People dont understand the market and they see music for a very gains that are taking place every day. These extraordinary gains that are taking place every day. The secret sauce then becomes the basis for a ponzi scheme. Shery David Sheehan<\/a> and irving picard. Straight ahead, theresa may reiterates the need for postbrexit deals in a speech to parliament. With those relationships could look like. We have the latest, next. This is bloomberg. David this is Bloomberg Markets<\/a> balance of power. Im david westin. Shery im shery ahn. Time now for the stock of the hour. Hopping hires are shares of after news they are going to be bought by Campbell Soup<\/a> for 50 a share in cash. Not a surprise. Abigail we have news of this late last week. Shares of 27 , these are the details around the deal. You can see what a bullish reaction this is. G btv 4667, a sixmonth chart of schneiders, and you can see around the 200 day average the represent longterm buyers, and the last thursday we had the Campbell Soup<\/a> would buy the snack company. And up, up, and away. , its not entirely surprise suggests that some investors are truly a little surprised, 50 a share, is a solid move and relative to why Campbell Soup<\/a> is doing this, the suit business has been sagging over recent years, there is salty snack business, goldfish, i dont feel like those. Thats been doing better. , all of theseels really good salty brands are likely to be good for Campbell Soup<\/a> and they could help the top line. Thats been down about 1 . It might help bring that is higher as well. David does this really transform the company . Abigail over the long term, it could help. In 2012, the meeting accusation thats been aion disaster. They had one issue where they had to recall yogurt drink an issue around carrots. However, this could be a move against amazon to be court amazon driven. Quote unquote amazon driven. G btv 6711, Campbell Soup<\/a> is suffering under sagging Campbell Soup<\/a> sales and in yellow, we had snyders basically flat. Amazon trading higher on the year and now look at that. , andrs really meeting perhaps that growth is going to help campbells over the long term. Thats the hope that these salty snacks and the idea of healthy food some of their brands are on the healthy side. 30 of snyders foods are considered to be on the healthier probably not healthy checks the shelti chips. Healthy chips. Shery abigail doolittle, thank you. May addressed British Parliament<\/a> for the First Time Since<\/a> divorce talks moved forward. What could the future in trade look like . The u. K. Consulate to the International Trade<\/a> association of america was with us this morning. The first into say is that brexit is a process that as a result of the will of the british people as expressed in the referendum in june and since then, the Prime Minister<\/a> under government have in mapping out what priorities are going to be in this negotiation. We made clear from the very beginning they are committed to a smooth, orderly withdrawal and a strong future ownership. The deal reached with the European Commission<\/a> and through them in brussels on friday was the really important phase one of that, in terms of agreeing the key withdrawal ships. We Start Talking<\/a> about the future partnerships and the Council Guidelines<\/a> on friday invited us to set our view on the future partnership and moving into the talks audible mentation so that we can deliver a smooth withdrawal. We need the clarity and certainty the businesses have been calling for. The clarity we will get at some point, but how do you do your job now and get trade agreements and reassure businesses that they are welcome in the u. K. , one nobody has any idea how this is going to play out . Theres no doubt that brings it is a big part of the context in which we operate. But weve been doing business with the u. S. Invested. Trillion while we prepare for the opportunities that brings it will bring. Is a make it harder with a protectionist rhetoric were. The white house were hearing at the white house . All of us want to do trade , we need to do deals. David what can you say to an american ceo who says this is too much uncertainty for too long and i need to move on with my planning. In order to myself, i have to plan like theres going to be a hard brexit and we have to move my bank to frankfurt or paris, because i cant have my people that uncertain. What do you say and why should they wait . We are engaged in a constant dialogue with big investors, whether their banks or the life sciences, we say to them just talk to us what youre feeling. There are many reasons why people are invested in the u. K. Over the last few decades, and one of the most part of the membership in the eu. In the future, it will be part of the close relationship with the eu. David i was anthony phillips, talking with us earlier on daybreak. Shery President Trump<\/a> will deliver remarks today in less than 10 minutes come outlining his National Security<\/a> strategy and we preview that. This is bloomberg. David this is Bloomberg Markets<\/a> balance of power. Im david westin. Shery im shery ahn. In just a few minutes, President Trump<\/a> will talk about his approach to keeping the country secure. Trouble make the case that u. S. Security demands vote a military buildup and research in on immigration. To more, lets go washington. , strategicrace competitor, the chinese wont like this. They used this reason for under george w. Bush and the chinese were not so happy. You are seeing a fundamental shift in how the u. S. Views global powers like russia and china to a much more confrontational view of that relationship, in the past, the idea was that the u. S. Would seek to blunt chinas rise and consider it more of a partner by bring it into the fold, including working more closely with china. And the Trump Administration<\/a> concluded that hasnt worked in china has benefited from that arrangement to the detriment of the United States<\/a> and he now wants to change that and confront china in the morning on way. In more ahead on way. China certainly, we need when it comes to north korea. Its one of the contradictions in the strategy and wanting the of administration is really trying to spread the needle on. Hes making clear that the United States<\/a> will not tolerate what he sees as unfair trade arrangements with china and also chinas aggression in the South China Sea<\/a> come at the same time, the u. S. Really has said that inna is the key partner limiting concerns over north Koreas Nuclear<\/a> program, it really needs chinas help in doing that. We havent really seen how the strategy, which is the broad brush strokes ideas of the administrations view on the world will play out when it really comes to the brass tacks of dealing with an issue like north korea. Shery are we expecting President Trump<\/a> to outline specific actions . Nick i dont think so. The National Security<\/a> strategy overviewto be a broad from 30,000 feet look at how the administration sees the world. Thats what is questionable raises questions about the strategy. A lot of the proof will sort of be in the pudding, when in administration looks to put these strategies into effect. We just havent seen that yet. It is supposed to be a broader outline and not really discuss details on how to confront north korea or other issues like cybersecurity. Its been almost a year now and theres been a decision pending about steel and whats taking so long . It never seems to happen. Nick there are many issues at play here. Clearly in discussions with the ministers official that ive had, north korea in the china example is a huge issue. Is a what you are seeing contradiction between the way the president talks about these issues and the strategy documented on individual policies like trade versus how he deals with these leaders individually. President has spoken very and a complementary way about president putin and president xi jinping. The same time, he is turning around and seeking a much tougher stance. Its really unclear how those two are going to balance each other out. Hopefully we get more from the speech today. Shery talking about president putin, a controversial relationship. Are we expecting anything on russia . Is what the this administration is describing is thaturn essentially this postcold war honeymoon that weve had for the last 25 years or so is over. , and ministrations, werecularly barack obama, able to bring these countries back into the fold and now they are saying the he to be more confrontational. Thank you, next. As we went President Trump<\/a>s speech on National Security<\/a>. David coming up on Bloomberg Markets<\/a>, emergingmarket currencies taking this last day after a number of elections. Join us at three got this afternoon. Live in new york, this is bloomberg. Welcome to Bloomberg Markets<\/a>, we are awaiting a major a dress from President Trump<\/a> on National Security<\/a>, focusing on a range of global issues including china. From new york, im scarlet fu. Its a site a whoy softer term from accused beijing of economic aggression. Lets get to washington as we await the president s remarks. Joining us from the white house is kevin cirilli, and from washington is nick wadhams. Great to have you both on the show. Nick, the last time china has been referred to as a strategic competitor. They decided not to call them that. This is a take two. China is clearly line to be upset again. they will indeed, but in some ways that is the point. The administration sees this as a fundamental shift that reflects what they believe is soft peddling by the administrations of past years","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600401.us.archive.org\/1\/items\/BLOOMBERG_20171218_180000_Bloomberg_Markets_Balance_of_Power\/BLOOMBERG_20171218_180000_Bloomberg_Markets_Balance_of_Power.thumbs\/BLOOMBERG_20171218_180000_Bloomberg_Markets_Balance_of_Power_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240630T12:35:10+00:00"}