On more than 10 years after they on more than 10 years after they started. Mark the executive order the president signed tuesday night just before a state of the Union Address says the u. S. Maintains the option to detain additional enemy combatants at the Detention Center in guantanamo one lawful and necessary to protect the u. N. National security. Republican, and trey gowdy and chair of the House Oversight committee is not seeking reelection. He released a statement saying he will not be seeking any political or elected office but will rather be returning to the justice system. He previously investigated the 2012 terrorist attack in benghazi, libya. He brings to 64 the total number of congressional members to seek reelection. 46 number includes republicans. Usa gymnastics has confirmed the resignation of its entire board of directors in a tweet, he thanked him in the process of moving forward with a board of directors during the month of february and with the United StatesOlympic Committee requirements. Dr. Larry nassar involves. Undreds of female athletes the gymnastics is the National Governing body of the sport in the United States. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Julia live from bloomberg World Headquarters in new york, i am julia chatterley. Joe weisenthal i am joe weisenthal. Stocks bouncing off the lows after earlier gains. The 10year still up above 7 . Reins, the fede on chains the race today. Confident inflation will pick up. Social network set to report earnings for the First Time SinceMark Zuckerberg announced a major change to its news feed set up. And, in the cloud for microsoft, the tech giant set to report earnings after the bell this season. Continuing away from the software business, will continue to drive growth. What did you miss . Incidents and out rations Sexual Harassment and assault are prompting change around the world. One policymaker is answering that call that would define men for lewd behavior. The ongoing conversation about diversity in the workforce, we speak with marlene, minister for gender equality. Great to meet you. Come your planning to present a bill in france to tackle against women. Why is it important to start with men for lewd comments and rude behavior . Think it is the same thing. I think it is rape culture so it at the very beginning since harassment. Give us a sense of what kind of behavior you are talking about. T are you thinking of here it is ok. We all know what it is someone is following you. That is why we are presenting with the minister of justice. What kind of support do you have for other lawmakers in france . It is important to understand the president decided a make gender inequality priority. We are in this altogether. We will get to that shortly but i want to get a sense of how punitive it might be. Somewhere between 90 and 750 euros, is that right . That is it. Around 100 euros, it could be , with your home and family. If someone has to chase it down, you end up paying more. Talk a bit about what is going on culturally in france. Some women in france say the me too movement in the u. S. Has gone too far. You have celebrities denouncing it for becoming a witchhunt against men. Is adea think there backlash in france . I think it is complicated. You know, some think, even women, still terrorism can be something, when someone is telling you but it is not like that in real life. You are saying there is a huge distinction to be made there. Thebacklash against movement, has it gone too far . Lastly, the government said it is sticking by its budget minister despite rape accusations. S is surprising giving given the headlines in the swell of protests we have seen around the world. There are two differences. For them in the Prime Minister him, but his trust in we have Different Things feared in the u. S. , you have metoo. In france, it is quite different in some people are not as , it is an impact to say it. Got it. There is parity in the cabinet but if you take a closer look at the president and prime topsters, parity in the jobs. Top diplomatic or economic advisers. It occurred look like a discrepancy between what your Government Asks for and what your leaders do. How do you explain that . I understand but do not think so. , we he was the candidate womened the number of decided to note it. Our thanks to marlene, minister for gender inequality. Thank you for joining us. Coming up, julia . Julia thanks so much, scarlet. What the challenges are facing in 20 15. From new york, this is bloomberg. Scarlet no surprises from the Federal Reserve today, which announced it is leaving the funds rate unchanged while hinting at a rate hike in march. What are the Key Takeaways . Lets ask chairman of Investment Strategy and research at credit suisse. Joining us. For what was the news to you in todays announcement . The news was it was per completely predictable in the market one fast asleep as soon as it sought, probably as it should have been. Yellens literal swansong in the meeting. I imagine in the room, there was a certain amount of nostalgia from a policy perspective, the course is set. They reiterated it with the use of the word further. Rather action. Ok. In ameans coming soon direction we know. The fund rate will go up more because that is an appropriate thing to be doing. It feels like down to this and there seems to big knowledge meant about what we are seeing in markets. They are tracking higher, it seems. There is still hope, in normalization of what we expect, given everything else, that will eventually appear. It is a reflection of chair yellenss legacy. Fillets curve is an and in the field. As the unemployment rates come the fed more broadly has taken the view that sooner or later it will manifest itself in wage pressers. The fact that it has not so far is the difference between science and religion. Details, details. But they think it will into course. The markets issue when all is said and done, when this started at 3 , of course they wouldnt be doing it. They started near zero. Until they get to a zone that is , their course is set. Question ill and broke the mold the mold. She pondered about why it had not gone up. I wonder whether she will try to break the mold in what she has established. What are you looking for . Tom keene i will reiterate that and accept that. Responsibilityic , to the degree it is all different, is to restore the standing of the Federal Reserve within the washington community. We live in a time when, for better or worse, there is a certain suspicion if you will of the agencies of the bureaucrats and so forth. The Federal Reserve is not immune to that. How does he do that . By being himself, i suspect. Very sober fellow in demeanor and so forth and i think it will go a long way. Lets talk about markets. What do you see when you look at the yield curve or shortterm rates or whatever. Does it differ from what you would expect or what you think the fed will do . I think the market is getting approximately to the three dots sort of idea. It seems sensible enough. One of the traditional patterns is as the fed begins, youll , and thed to flatten stock market tends to go up. Historically, the fed starts this tightening phase fairly near the recession and the economy is starting to get better. Defaults are coming down from recession highs. It is not where we are. The profit share is very high, getting a big boost. The question is will it be different . So far, no. The yield curve has been flattening, and the stock market has been going up. Will that persist . Mixed feelings. It is not an easy judgment. At this time, it is different and it is supposed to be dangerous. On the other times, it is sometimes different. Ityoure supposed to not say. Precisely, that is my point. This is the difference. A very different phase of the Business Expansion pair the other feature that is probably worth giving additional thought a deficit come country that needs capital from the rest of the world tends to find of the currency is weakening in the yield curve tends to and that is another wrinkle in this particular moment, it is unusual compared to past patterns with respect to the early phases. Fake cannot catch a break. Sentiment forange what is going on at this moment. Confluences,ny whether it is refinancing as a result of tax overhaul, the back a historic moment in terms of Monetary Policy and a retraction of that. Impact rates will as well. It is fair to say because of the behavior particularly of Central Banks taking risky assets on their Balance Sheets and weucing volatility have to absorb and deal with and so forth, one of the effects, if you do it for long enough, is in this environment, you have to be short volatility in some form in order to make money. If you observe so in the market today, and they survived the last five or 10 years, a short volatility strategy in place, that is sometimes explicit, people who literally sell volatility. Others have it in an implicit form. Thanare more selfaware others in this regard. But that is the issue. How you wind that in an orderly way . Like any other big environmental is really the case that everyone is in the same spot and climate is changing, so to speak. I think there is a lot of thought process about how to do that efficiency more than actual behavior in that direction. Volatility has inched up and all of these markets and i think that has tracked attracted the attention of investors as well it should. Neil. At to chat with you thank you for that. The for a look at some of biggest business stories in the news right now. Heresa may is in china speaking in beijing today, she shared her vision for trade thetionship future between nations. Our Global Partners for the longterm, we are committed to building a mature ties for peace and prosperity in the 21st century and i look forward to continuing this discussion. Led by a threemonthold bank. A shot in london, details firms such as bank of america and jpmorgan chase. Hsbc. The tech on tap today. Company declaring earnings include facebook, microsoft, ebay, and qualcomm. The corners speed is critical to the outlook Blockchain Technology and its business are interest to. Takeholders growth merchandise volume growth. That is your Bloomberg Business flash. I cannot help but smile. As many times. This is time for our stock of the hour. Were seeing eli lilly late leading down and it has nothing to do with amazon. A little bit of lingering overhang from yesterday. Asked the with earnings for the company. In particular, results from its animal house business. The problem is it is not doing very well. 6 in the First Quarter. The company had previously talked that the margins would take longer to achieve than they previously talked in the margin, the expansion of the business. I thought people were crazy with their pets these days, spending an insane amount of money. Here isis interesting of thehe kneejerk Animal Industry and in other words, people want the animals they are eating to have less fewerin them, to have drugs in them. The dairy supplement and the cattle, weight gain treatment, as jeff simmons says, it is because of the change in the u. S. Eating habits. Here. Fascinating results lets also talk about the tax rate. With regard saying to the tax law and how they keep things going. It is all relative. Max wrote an interesting piece and said basically it makes everyones health look bad because earnings came out and said its effective tax rate but only 13 to 2022. Part of that and various tax rate. Wasill be better than it but in comparison, whether it is fair or not, it has set the bar for the industry and does not look a strong. Uncomfortable data overall. Throw it in the mix. Julie hyman, thank you. We are relating facebook results. Theyre coming out after the bell. In the meantime, we have got the chart you cannot miss. This is bloomberg. Lets talk about the oil price. Not the price were talking about on a daily basis but how much production is going into it. Take a look at this. U. S. Oil production levels at the highest they have been in 47 years. It is the second highest on record. Weve talked endlessly about the contribute factor but this chart in the last two years in the last six and seven and eight months, and when you have got something that stands today that is only going up, up, up. Ais is important and you got hold of this. It breaks it down if you go back to november of 2016. The yellow line at the top features u. S. Production rising. Opec production, blue chart at those things together. You have got opec and u. S. Production relative net change. The joe facebook coming out after thisell and of course, will all be about mobile. Check out the breakdown. Oranges mobile, desktop hasnt really gone anywhere in years. Mobile is just a Straight Line up. We will look at that number and usage and forecast. Cannot wait to dive in. Remember when people were wondering whether facebook could get mobile right . So long ago. This is bloomberg. Thea u. S. Stocks ending stocks that 2. 7 . I am julia chatterley. Scarlet and i am scarlet fu. And if you are tuning in from twitter, we welcome you. We begin with the market minute. Looks at what cap the third day declines of u. S. Stocks, but low and behold we finish in the green. Of 2018 great selloff at least for now has taken a break. Scarlet it may even be over. Eye onkeeping an facebook and microsoft before they report results. We are looking at other Companies Making big moves. Broadcom surging after an upbeat earnings outlook. Expect up 40 from the year earlier and topping average analyst estimates. Ea and activision higher after activision its should say said the fiscal year forecast the analyst at summits estimates. Over 3 . Square moving another company jumping on the cryptocurrency bandwagon. Joe even though bitcoin is fading, companies associated with it doing well. Lets look at the bond market, not a ton of action on the surface with a twoyear yield inching a little bit. Ending flat but it was a back and forth day. We were at two point 75 a little bit after the fed decision but ultimately was 2. 72 . Today is no exception with dollar losses and emerging gains. Lets look at this chart once again, the u. S. Dollar being mnuchin with steven weighing in about the weaker dollar on the shortterm, and we that at what point does the u. S. Dollar weakness became a problem here . We have bank saying the rapid decline may in fact hurt developing countries by chipping away at their export competitiveness. Bute not a problem now given the divergence we have seen, it will ultimately become a problem. Just opening the question there, and another thing were looking at is the eurodollar reiterating that patience is needed with the level of inflation and be prepared for brexit outcomes. A fresh twoyear low for the dollar swiss, and pointing out as well, 3 10 of 1 . We had the bank of japan saying that policy is needed to reach the inflation target. Got to bear that in mind when you talk about markets overall. Finally in commodities, oil and gold green across the board today, recouping a little bit of those losses. Oil is up half a percent and gold is up half a percent. Earlier that chart hitting 10 Million Barrels a day for the first time in 47 years. Those are todays market minute. Microsoft lets start with the top line because that is something we can give you comparables for. 20. 92 billion analysts were 28. 3 9 billion. There was a loss of . 82, analysts were looking at a profit of . 86 but there was the u. S. Tax law change and as a result a charge of 13. 8 billion according to microsoft. We are not comparing bottomline numbers to the consensus estimate. Of different business segments, the cloud is an area they have been building that the growth is an. Of 7. 8 billion so it was higher than anticipated. The bulk of the business is very much personal computing. Of 12. 17revenue billion. Joe very important to specify the gap loss relating to the tax cut and jobs act. Tech companies have this cash to repatriate and pay a onetime fee, so there is not a economic hit. What you see, muted reaction so far to the data. Scarlet we also got facebook the results with fourthquarter earnings per share that looks to be a mess. Miss. Over 12of revenue, billion which is higher than analysts were looking for. The key number for investors is the daily active users, 1. 4 billion, analysts were looking for one point four one billion, so that appears to be a miss among active users. Facebook is trading lower by 3 in afterhours trading, a sluggishness trailing performance that we have seen in 2018 because of the announcement Mark Zuckerberg made about the way they will present information on users news feeds to encourage more engagement. Strong year for facebook but also a hard one according to Mark Zuckerberg. Facebook isnt just fun to use but good for peoples wellbeing but reducing time spent on facebook by 68 million hours every day 50 million our reduction every day. Advertisers, critical questions to be asked. Scarlet that talks about the scale of facebook. It is pretty much matching the consensus estimate. Lets bring in David Kirkpatrick take give us a deeper look at the numbers. He is the Company Founder and ceo and author of the facebook effect, and every quarter we bring you on to talk about facebook and do not get out of the park. This quarter they are acknowledging a struggle. I was thinking the great aikens line that is the great the great Charles Dickens line. Placeok is the de facto because of the extraordinary target ability. The last year to have gone through an extraordinary shift to be viewed, even now on wall street as a dangerous