Perkins. Christine lagarde is under investigation for negligence in france when she was the french finance minister. Many around the world are astonished by that latest adult development. The s p will kick off today at a new high but that is just a part of the story. Rallies in brazil and japan helped push the value of Global Equities to its own record, 66 trillion sloshing around the global market. Trillionmore than 2 in value since august 7. The markets correspondent scarlet fu has more. 1000e index first reached in 1998. It took 16 years. It was last below 1000 has recently as september, 2009. From that point of view, it has taken almost five years to go from 1000 back to 2000 and now it has closed above it. I was looking at the movers and you have cyclical groups leading nine from 2009 until until now. After stocks are up 125 percent. Industrials gaining 120 . These are Industry Groups that have doubled in value since that period. I was speaking with liz and sanders she says the significance of the s p at 2000 round numbers matter psychologically, but to institutional investors, not as much. They do matter at a key technical level family reached that when we talked 1920. The key focus is on the dow industrials and what they will be looking ahead to is not the dow and a new record button nasdaq topping its previous high of 5000 back from the dotcom days. That will have people saying wow. Certainly a lot of reflection. Thank you, scarlet fu. I want to bring in bob dell, a chief equity strategist who joins us from princeton, new jersey. Bob, you say 2000 and mental milestone, but it is an important one, isnt it . Turn a newke when we decade it is a milestone, but we are the same as we were yesterday. 2000 is exactly the triple of from when the bull market began. Stocks have tripled in the last five and a half years. They have tripled in the last fiveandahalf years, so, bob, what brings us the next 1000 . It will be earnings and Economic Growth from here. A lot of the move from 666 to 2000 was earnings, some was ee. Continued good news and that is what we will get. You have mentioned that among all of the still wild card is the fed. Why is that, bob . The fed is no question has been the focal point for this economic expansion. First of all, rescuing us from almost going out of business, if you will, to the reflation problem of getting us on our feet, and everyone is focused on the withdrawal of the fed. Engineered i say pe by the fed, loosely, is going up the big story going toward. It is Economic Growth and earnings. Why is it the wildcard Going Forward, bob . I think the fed and janet yellen have broadcast clearly what they plan to do in the next 18 to 24 months. The focus of investigators investors was where is the comma , the capital letter what month will they raise Interest Rates . I agree with you that the the details iso pretty much in place, and that is good news. That the fed is not normalizing rates in the future means the economy is doing better. You say wilden card, is that enough to derail the fiveyear bull run . Know, the fed is our friend, not our enemy at all. They will only become an enemy when they raise rates to fight inflation, and we are nowhere near that level. What else could help derail or what could derail this rally, bob . . We know the last few months has had, if you will, this on thebetween earnings good side, and geopolitics and slow growth overseas on the concerning side. It is that side of the ledger are there more geopolitical issues, do things heat up . Sanctions in europe, what does that mean for growth . Europe is pretty weak, japan is not strong either. We need better. You. B doll, thank what could derail stocks . Maybe a tech bubble . I do not know. It is a big day for snapchat. They are said to be nearing a new round of funding that will value the company at 10 billion, nearly three times what facebook offered to pay for the company last year. I want to bring in bloomberg editor tom giles. Are we in a tech bubble all of those questions. As you said, it makes no money, so why do people want it . First of all, it is a popular way of communication for young people. These sites, the facebooks of the world, they want to tap into how teens are keeping in touch, sharing information, photos. What you see with someone like kleiner perkins, they are looking at what kind of valuation they could have in the future. You think 10 billion is a lot. Facebook 819 billion for their deal a few months ago. They are looking forward and saying they will keep getting users and the attention of the next generation of Internet Users that some buyer will want to get down the road, possibly more than 19 billion. That is what they are looking at. Yes, maybe somebody will find a way to get marketing messages embedded into these photos. Maybe not. What is important is getting the attention of the next generation. That is crucial. It is all about the millennials. We have to fix your microphone. There is some crackling going on. Well be back with tom giles, Technology Correspondent for bloomberg intelligence. Republicans are confident they will hold onto the house in the midterm elections but Speaker John Boehner might not be as happy as you think. Some of his biggest critics within the republican ranks are headed back to washington and they might be bringing reinforcements. Peter cook has more. I thought the tea party was supposed to take a hit in this election. That is how it has played out in the senate, but in the house, midterm elections could turn the republican conference further to the right, and it will raise question about John Boehners grasp on the speakers gavel. 10 of the 12 house members that did not support John Boehners election as speaker are cruising to reelection, and the other two decided to run for the senate. The Group Includes three lawmakers specifically targeted by business groups like the chamber of commerce for defeat and that includes tim huelskamp, justin amash, and walter jones. They all won their primaries and look safe in the general election. The bad news for john boehner the antijohn boehner chorus next year will be even bigger. There are almost one dozen new republicans on their way to victory in november that have set on the campaign trail that they will not support or at least at this point will not commit to back john boehner and that includes gary palmer, and alabama and georgia talkshow host jody hice. He could still win support from the rest of the conference, continue on as speaker, but his job already is like herding cats , and it looks like there will be a few more cats for him to deal with. Expects to said he be the speaker, and one thing he has done to shore up support is republican. To every when will be the test . Assuming the democrats do not when the house, and nobody expects that to happen, it will testand april, and the big will be a vote on the debt ceiling later on in the spring. Thank you, peter cook. Coming up staying with politics, rahm emanuel focusing on big data balancing the citys need for information on concerns about privacy. Cutbacks and consolidation that is a reality for many in the telecom world. We will talk to the ceo of Alcatel Lucent exclusively in a moment. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Ever since he took the helm in early2013, alcatellucent ceo Michel Combes has been trying to revive the Telecom Giant by selling assets and cutting jobs. Cuts innced 10,000 job october. As the industry consolidates, few giants remain. Cisco, announced 6000 more layoffs. To get a state of the industry, i want to bring in Michel Combes live from paris. Thank you for joining us this morning. First off, on the layoffs, where are you in the state of costcutting . Are you looking for any more job cuts here . So, first, good morning to all of you. I am you, as you just said at the University Close to paris where our french Prime Minister has just arrived in order to announce an important speech around how to restore trust and confidence in french economy. Ok. I get where you are, but just to answer my question are you looking given that the industry seems to be consolidating, cisco cutting jobs again, where are you on the costcutting spectrum . Are you looking at further layoffs . Sorry, my answer was not precise because it was very loud when you asked your first question. As you know, i started a planned 12 months ago that was about restructuring, refinancing the company. After 18 months in this process i can say today that this first stage of this plan has been implemented, meaning the company t. ,clearly refocused on i. Cloud, and altra broadband access. Have been able to implement strong restructuring with more than 10,000 layoffs within the company, and in terms of refinancing, we have been able to refinance 2 billion in debt, and raise 2 billion in equity. It is the right time for me to start the second step of the shift plan, which is now about innovation, transformation, and about growth in order to make sure alcatellucent will renew with profitable growth and become one of the Major Technology leaders on a worldwide basis. Well, on the growth side, where do you see spending . I know in the u. S. Verizon and your biggestof customers and they spent quite a bit in the first half of the year, but that appears to be slowing down. Where is that growth going to be coming from, michel . That the u. S. Ht has been a nice Growth Engine for alcatellucent in the past few months. I have no doubt that it will continue. As the competition is, as we say, picking up in the u. S. , with sprint, and of course at t and verizon will continue to invest. That is for the u. S. Of course, alcatellucent can also deliver products to cable operators, web players, and larger enterprise segments. That is where we are trying to extract additional growth. If i go outside of the u. S. , asia is also booming with very strong investments, many led by china, japan, korea, where we have a strong presence. Then, remains europe. As you know, investment in europe is quite weak right now, not only in france, but europe as a whole. One of my reasons for the presence at the university today is to plea for additional investment in infrastructure which is critical to relaunch the growth of the economy in europe. That,hel, speaking of asking for investment in france when austerity is being put in place and there is a revolt, how will you ask for that when there are austerity measures being put in place . That is where we have to find the right balance between austerity measures, which are needed, because we spend too much. We have to reduce this burden. On the other side, of course, we have to make sure we invest properly in the right areas. So, that is one. I guess there is probably today, and understanding that investing in Digital Infrastructure is needed, and europe and france has to reignite investments in Digital Infrastructure. It is not only about money. It is also about regulation, how to favor consolidation of Service Providers in order to make sure they are Strong Enough to invest, as is the case in the u. S. There are four major telcos in the u. S. Where we have 120 in europe. Such a fragmentation is not the right way to invest in information infrastructure. There is a lot they can be done in france and europe in order to reignite that, and i am confident that the new government sector will embrace this need. , addressed michel the china question what are you doing in relation to wah way . Competitor, my only answer as far as alcatellucent is concerned is to be competitive here at i have to innovate more. I have to hit competitive. I have to innovate more. I have to have the right cost structure. I am competing with them around the world and i should defeat them with my own means, meaning i should be best in class and that is what im trying to achieve with alcatellucent. Ok. More costnovation, reduction, and that will allow me to be best in class. Michel, thank you. Michel combes, the paris. Lucent ceo from we will talk to the chief economist at the zillow in a moment. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone and bloomberg. Com. Good morning. I am betty liu. The Obama Administration is trying to line up allies for possible military action against the islamic front in syria. Among those that might sign on, the u. K. , turkey. Standard general is in talks with radioshack about raising money and staving off bankruptcy according to people familiar with the matter. Radioshack has lost money for nine straight quarters. A flight with American Airlines censures of orbits down by the most in three months. They have sold shares in a discussion dispute over new contracts. Prices from u. S. Airways as well. In the meantime, it is 26 minutes past the hour. Bloomberg tv is on the markets. We have been making a big fuss over s p 2000. Right now, s p futures are unchanged. Can fiveyear stock market will run continue bull run continue . That has been a big question today and has been for this year. We are on the markets again in 30 minutes. As home pricing gains hit the brakes, rents across the country are climbing and approaching record highs, but there is one exception. The Nations Capital a glut of construction has rent on the decline. Leasing costs fell in the Second Quarter compared with the National Average gains of 3. 3 . It is a big disparity. The decline is making the washington, d. C. , metro area the worst rental market for landlords, but good for renters. Joinsumphries from zillow us now. This goes to your point that housing markets are getting more localized. That is right. 20052006, they were all going down, but009, going now local is coming back with a vengeance. You have to understand the dynamics what is happening in cleveland is different than vegas. Do you know what is happening in the sea d. C. . Why is this happening . We tend to focus on the affordability of homeownership. It is getting harder to rent. Markets, rent of is unaffordable, even though 90 are affordable for purchases. We have had households forming that has been primarily renting households, not owning households, and that is created rental demand. There is not enough supply to service the demand. Prices have been going up. In the bay area we see doubledigit rates spikes in terms of rent. How does that affect if you have unaffordable rental units, how does that eventually affect home prices . That is a great question. People think they are separate markets. They are not. They are related. Rightharder for renters now to stimulate savings for a down payment in order to become a buyer later and that creates problems down the road on the purchase side of the marketplace. Would you see that biggest problem now, what cities . Were both rent and purchases are unaffordable california markets. San diego, l. A. , San Francisco, san jose, they are most out of whack in terms of rent that is unaffordable and purchase prices that are unaffordable. When both sides of that equation are unaffordable by historical standards, usually that is an indication there is not enough housing supply in the market and we need to build more housing units. Ok, so we need to build more housing units, not what some others are saying, we need to stop building the units because we might be headed toward a housing bubble . That is right. A bubble would be if you saw purchase prices out of whack compared to rent. Have you seen that anywhere . We do not. Y, broadly at the u. S. Level, homes and never been more affordable. Not even here in manhattan . Manhattan is always unique. Right. Even San Francisco. Generally, incomes in manhattan and San Francisco are very high as well. Typically, people spend about third of their mortgage of their income on their mortgage, and now they are about one spending fourth. As rates go back to normal, youll be spending more of your income on the mortgage. Rent is no bargain in San Francisco either. There is basically nowhere to hide from high housing costs in the bay area. Bottom line, then, stan, we e gotten housing data caseshiller numbers not great by any measure where do housing prices go from here, the bottom line . . Here, bottom line . Slowing, and it is actually a Welcome Development because if it is not slowly briskly inflating a housing bubble in some markets. Arent we still way below the 2008 peak . Schiller index, we are still about 10 off of the peak levels, but the issue is those eight levels were unsustainable and we had a housing correction for a reason. Ok. I do not think we should be in a hurry to get to the peak levels. Ok, so basically we will continue to rise, just not as much as we have seen in the last several years. But that is right. On the that is right. On the zillow index, we think we will grow at half the pace of the last year which would be a welcome slowdown to give markets a breather while incomes catch up. You so much. K stan humphries, the chief economist at zillow. Staying on cities, one on one with chicago mayor rahm emanuel his latest project causing controversy. And is there room for a bigger ipad . Preparing for the largest ever. Details on that. Stay in the loop. Well, the city of chicago is betting big on big data. Mayor rahm emanuel has given the greenlight to a project that would install metal sensors on traffic post to collect data on air quality and weather, but it has privacy groups concerned. Iting the managing editor bloomberg tv managing editor sam grobart explains. Chicago might be the second city, but it is the first to launch a permanent infrastructure to collect big data. This network of sensors will measure temperature, humidity, light, sound, and cell phone signals, all from these m