Mark police say the driver is an Australian Citizen of afghan descent who has a known history of drug use and Mental Health issues. U. S. Senate Majority Leader Mitch Mcconnell says he doesnt expect the chamber to take up changes on the welfare system in 2018. He addressed the issue at an axials event in washington. I think the democrats are not going to be interested in reform, so i dont expect to see that on the agenda. What the democrats are willing to do is important, because in the senate, with rare sections with rare exceptions like the tax bill, we have democratic involvement. Mark he added infrastructure is a key objective or next year and at a minimum he expects technical corrections to the bill. All remaining significant evacuation orders in areas the smoldering remnants of Southern California path huge wildfire have been canceled after a new round of winds cause activity. Warnings of high fire risk were canceled for Santa Barbara county. In ventura county, firefighters attacked a section of the blaze from the air because terrain was too rugged to get ground crews in. Global news 24 hours a day powered by over 2700 journalists and analysts in over 120 countries. Im Mark Crumpton, this is bloomberg. Julia live from bloomberg World Headquarters in new york, im julia chatterley. Scarlet im scarlet fu. Joe im joined wiesenthal. Julia where 20 minutes from trading, treasury stopped a wink long flied. Joe the question is whatd you miss . Scarlet a 200 surge. A new yorkbased company joined the crypto. By shifting its focus from beverages to blockchain. Nike earnings out today after the bell. We bring results as soon as they cross. Why the companys growth may come outside of north america. Midsized cars are falling faster than some can handle. We look at what to expect in the Auto Industry coming 2018. Julia whatd you miss . Anyone who gets into the crypto crzaze. Take long island iced tea. This is me, this is a serious face. The new yorkbased beverage maker is rebranding to invest in opportunities leveraging blockchain technology. Its stock rose more than 200 on the announcement. Gentile,s now is guy he spent years investigating penny stocks undercover for the fbi. Now he has identified a new pump and dump scheme around the crypto stock craze. Great to have you with us. Its classic. It has all the hallmarks of a pump and dump. Something trendy, line of rest releases, running your stock up. A secondary offering is announced. Julia do you have any intention of doing anything remotely businesslike in the cryptocurrency craze . This example presents a part of your business . Guy for my own business . Julia no for the pump and dump when you are pumping are you doing anything . Guy they need to show they are involved in crypto in some way. Scarlet i will read something from their website. The company is in the preliminary stages of evaluating specific opportunities involving blockchain discussions. They are in the preliminary stages, but include potential partnerships, investments, or acquisitions. Theres a lot of we plan to do this, but no details on what will happen or how. Guy they need press releases in going. O get the hype some will invest into Blockchain Riot invested 12 million into some Crypto Mining technology. They bought a company for 12 million that maybe spent 2 million a few weeks ago. It doesnt make any sense. we see the stoxx shoe up the stocks shoot up. , are thesebuying people who want exposure to the sector . Todays game is know it will probably crash, but it is where the action is, lets see if i can roll the dice . Guy there are daytraders involved in these. They want to play for the shortterm swing. But there is retail that got sucked into it, they end up holding it and averaging down as it goes lower instead of selling. Julia what do you do that short trader . Guy we are an online trading firm, there is no Investment Advice or anything like that. Julia you have experience . You work with the fbi. The reason why you were working with them, you got experience of recognizing these things and trading these things. Guy we were able to see what was going on behind the scenes, how they plan their deals. These stocks slip that same blueprint that that same blueprint its that same blueprint. Scarlet these companies have to know their is company on them. I think these companies the management investors for capital , they say we will give you a few million dollars, change her name and come up with press releases. They need the cash. Joe when people see these things, their mind goes back to 1999, and companies would add. Com to the name or have some internet thing. Are there other periods, thats obviously the one that everybody remembers, have there been other examples of these waves they have jumped onto. Guy you did have some Real Companies come out of it, like yahoo and microsoft. Its more resembled like what would happen in the bulletin markets and the pin sheets, oil and Gas Companies were oil is 150 a barrel. When social media was, they were pumping social media stocks. There was this last year. Now with blockchain. It comes down now it is blockchain. Joe the same people who are currently doing blockchain pumps a year ago . If you would have searched their names, it wouldve been the same pattern . Guy those people are already in jail. Julia beauty queen treat but do you defeat create for cash guy now, theres a frenzy. Anything blockchain related will go up. I do see bitcoin by itself is topped out. Bitcoin is are like the bluechip of the coins. Right now everybody is rotating to the alt coins. Ripple and things like that are skyrocketing. Scarlet thats part of the process . Part of the pattern where you see the first one peak . Guy people will buy if it is going up, if it goes down people dont buy. Theyre rotating out of the ones that are not going up and to the ones that look cheap, but are not. Joe is there an obvious thing regulators could be doing to prevent people from getting burned . Guy yes, the stock is up 100 for the day. Let it cool off, come back the next day. Julia do you think there should be any kind of Warning System or greater awareness for Retail Investors beyond the fact that if something rallies 100 there needs to be a stop on it for a while . Guy theres always something you can do. The fcc is always late to the game, they always come after the fact. Its rare that they come in while something is going on. Julia sophisticated investors are saying some people will make money, some will ride the wave. Guy if you are a day trader and in and out the same day, maybe you can make money. Julia have you taken a position . Guy yes. I get in and out on the short side. Scarlet how long are you in for . Guy like one week, sometimes a day. There are a few that i was in and out this morning already. Julia would you short bitcoin at the levels . Guy you would have to sure it with the futures contract. I wouldnt sure it i went short it i would not sure it. Btc, a stock that tracks bitcoin and the cash markets. Theres definitely a strategy to hedge. Theres plenty of profits they made on that. Scarlet when does this end . Guy i sold all of my coins last week. My mailman is talking about it, everyone is talking about it. I always told myself when everyone starts talking about it, im out. Im at that point. When retail start buying, who is going to buy after retail . No one, they are the last ones in. Scarlet guy gentile, ceo of short trader. Coming up, minimum wages are rising at Fifth Third Bank. We will speak to the chief about what is behind that increase. It may have something to do with the tax cut. This is bloomberg. Scarlet we have breaking news crossing having to do with bitcoin and goldman sachs. Goldman sachs is said to be setting up a cryptocurrency trading duct. This would make them the first large wall street bank to make markets in cryptocurrencies. We are following the wild swings for bitcoin and companies that engage in blockchain, a technology underlying bitcoin. We will have more in a few moments. In the meantime, whatd you miss . Fifth third bank announcing plans to raise its minimum torly wage to all employees 15 as well as disturbing a onetime bonus. Generous . It comes in the wake of a new tax code passed by congress and could be signed into law by the president as early as tomorrow. Erik schatzker is with us, he is speaking to a special guest. We have Teresa Tanner with us from cincinnati, the chief Administrative Officer at Fifth Third Bank. Good to see you. Lets begin with the tax bill, and what robby speaking it means for fifth third what broadly speaking it means for Fifth Third Bank. Like all companies, we are going to have a lot of benefit from that. We are still going through the details to know exactly what it means we do know it will give us an opportunity to invest in new things. And investing in our people was the first thing we wanted to do. , haddid some rough math you had a 21 Corporate Tax rate in 2016, you would have saved 72 million. What you paid an effective rate of about 24. 5 . Doing more math, the 15 an hour your paying to some 3000 employees compared to 10 you paid them previously is going to cost you 24 million more. Then you are paying out 13. 5 million in these bonuses. How did you come up with those numbers . Why is 1000 the right number for a bonus . Wife 15 an hour the right minimum why is 15 hour the right minimum wage . Teresa for the minimum wage, we have always paid a competitive wage. We frequently checked the market to make sure we are paying a competitive wage. We want to be more than competitive for certain roles. Especially those roles that have direct impact and interaction with our customers. We want to be best in class. We thought 15 an hour makes us just that. For the thousands for the 1000 bonus, nothing terribly scientific area we just wanted to do something nothing terribly scientific. We just want to do something meaningful. It is something meaningful for our employees. Nor what i suggest you shouldnt be giving 13. 5 thousand people a thousand dollars onetime bonus. There are questions teresa we are excited to be able to do this. We also want to know about the politics decision. Was stopped you from making those choices before hand . Adds up to 1. 9 of your income last year, not like it was a make or break kind of amount of money. Teresa first of all, we have invested in our employees always. The this year, beginning at beginning of the year, we put in new programs like maternity concierge for employees. Paydded four weeks of 100 for all new parents, including foster parents. We are investing in wellness, new workplaces, investing in our employees is not anything new, its not anything we are doing just now. This new legislation, this tax reform will give us additional opportunities to invest in many ways. Investing in our employees will continue to create more shareholder values, more value for our customers. Although there are different ways to invest, certainly investing in our employees is not something new to us, it is something we do all the time. How do you make the decision that the amount of money you should invest in the employees, is roughly speaking one third of what you will save because of the lower tax rate . Why is that the right number . Why not more, why not less . Teresa it is the right number for now. For us tomany ways invest our capital for shareholders and customers. We will continue to look at all those ways. ,ncluding our employees investing in employees is the right thing to do. It will create additional value. Whether it is new product, innovation, services, there will always be additional ways for us to invest that capital, and we will do so wisely. How much of what is not going to employees will go directly to the shareholders in the form of stock buybacks or perhaps a higher dividend . Teresa we are still working through those details. We recently had an investor yesterday where we discussed our plans in more detail for 2018. That is certainly out there for those that want to date into the details deeper. Those things will continue to look at, and we will make decisions for our customers, shareholders, and employees. Should shareholders assume they will see some of that money . Teresa certainly. Creating shareholder value is our intention. Its what we do. Certainly you are going to see continued investments and continued value. The reason i ask is some shareholders the best way to create shareholder value is to give them all of the money, not to pay it to the employees, not to spend it on other projects, if you have money you didnt have before think to tax cuts, how about giving it to me . Thats the idea. Teresa we believe our employees create that value. Our employees and creating an environment where they can do their best work and bring the best products and services to the market does create shareholder value. A philosophyays be of ours. We have always invested in employees, which has allowed us to deliver the results that we deliver. The 15 an hour number was the same that wells fargo announced. The 1000 bonus number was the same we heard from at t and also from comcast. Was their participation in these discussions by somebody from congress, or someone from a trade group lobbying organization to help you get to those numbers . Teresa not at all. It was interesting that a lot of us came to similar answers. Decision that was absolutely coincidental. How about contact with the white house . Teresa not that i am aware of, no. This was strictly Fifth Third Bank saying we are going to save this money thanks to the taxcut, and we have come to these numbers. You realize it seems more than coincidental that they are all the same . Teresa i think it is certainly interesting that we all came to a similar answer. 15 minimum wage is something that has been talked about in a lot of different sectors for a while. That one is easy to think about. Some of our peers have made that commitment. No, its absolutely coincidental, but we are excited that we are able to do this for our employees. They certainly are excited, as well. Delighted. They are it is great of you to take the time to explain to us in more detail the thinking behind those decisions. Teresa tanner, thank you very much and happy holidays. Scarlet we just want to expand on the breaking news we told you about. Goldman sachs will be setting up a cryptocurrency trading duct, positioning the firm to be the first large wall street firm to make investments in it. This is bloomberg. Scarlet whatd you miss . Bloombergs Group Goldman sachs is setting up a trading desk to make markets in joining us with details is kidding campbell. Andoldman is Going Forward they are going to set up a cryptocurrency. We have heard this a couple of months ago, but it was very early in the process. It was still up in the air whether they were going to 4 the weather they were going to go forward with it. Now we know they are Going Forward, assembling a team. Its serious. Joe one of the hardest aspects is technical implementation. Theactually have to hold coi, or get hackedns. Is that a or get hacked. Custody,curity, its how you actually hold it or keep it on your balance sheet. It would it surprise you to know that Bank Regulators have not done a lot of thinking about where cryptocurrency fits on a bank balance sheet, how much capital you have to hold against it. All of these things need to be worked out, they are in the process of doing that. Julia we have been showing it in comparison to emergingmarket currencies. Scarlet it should be Frontier Markets at this point. Julia the interesting thing to trade. One of the options what about options . It seems like it. Julia bitcoin barely budged today. Is that important . Barely budged in terms of price action . Julia in terms of a reaction. You have one of the biggest banks in the world, they say we are going to start trading this. Would you expect to see optimism . If this is about greater integration rather than retail. I see this as a signal of bigger banks getting into this. Some legitimization of bitcoin. One reason that you may not have seen the move is because of futures. Futures have been out for a couple of weeks. Realhas brought some legitimacy to this. Maybe they got ahead of goldman. Scarlet thank you so much for the scoop. The trading desk will be in state business as well. The market closes next, these are the numbers. This is bloomberg. Julia whatd you miss . Creeping higher. Boosted by energy and financials. Im julia chatterley. Scarlet im scarlet fu. Joe and im joe wiesenthal. Lets begin with our market minute. U. S. Stocks closed higher, but in the last 30 minutes of trade we saw a dip. Dow closing up 57 points. Earlier, it had gained a lot more than that. F course we had gdp data the number was revised down slightly down to 3. 2 . Joe slight moves and slight gains in the market. Another day of holiday trading. Is the themethat all week. We just kind of drift. Hasthe past few days, it been higher. In terms of stocks, lets take some looks at individual names here. Andave included an brain or boeing. The two are discussing a potential combination. This would be a deal that would expand boeings line. Line, a retailer that has to do with athletic gear, doing well. Up 13 . A surprise sales gain. Perhaps, the Athletic Shoe industry may be on the mend. If you look at bed bath and beyond, christmas may have come early, but it is not good news. The stock down 13 . Heavy promotions may have spurred holiday sales in december in november, but not december. Tea, rebranding itself. Joe nonalcoholic long island iced teas which is its own discussion. Julia its about the future. Companies, where we talk about the future and pricing them braced on future opportunities. Scarlet but this company is not doing anything right now. Joe i like the optimistic case heard lets look at the Government Bond market. A little bit of a give back at the long end. This was a dramatic move heard we had 2. 5 at one point on the tenure on the 10 year. Giving a little back today. A quick look there, x a kos 30 year yield surging. Year yield 30 surging. Julia you know me well. Lets take a look at currency land. The dollar dro