The new estimate does not take proposals. T other the russian president Vladimir Putin says he hopes for normalization of relations between his country and the u. S. President putin made comments on the annual tv call in show at among other topics coming the former fbi director james comey has not provided proof that russia influence last years u. S. President ial election. List ofo getting its demands from saudi arabia and the united arab collate and turkey are acting as mediators between cutter and the alliance, honoring the cup group,rt of the allied according to people familiar with the matter, proposals could be coming in the next two days. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 100 20 countries. Im mark crumpton. This is bloomberg. Live from bloombergs World Headquarters in new york, i am julia. I am scarlet fu. Joe i am Joe Weisenthal p are where 30 minutes of the close of trading in the u. S. You guessed it, a tech story once again. Joe the question is, what did you miss . Scarlet Robert Muellers investigation now into the firing of james comey and whether the president may have obstructed justice. Adidas regaining popularity in the u. S. Obamacare none other than Jared Kushners rather. Joe lets look at where the major averages stand. Abigail doolittle is standing by. Abigail we are looking at smaller modest declines heading into the close. That is remarkable because earlier, we were looking into significant declines are the dow just up fractionally. The dow had been up half of 1 . And the nasdaq than half down less of 1 come earlier down 1. 4 . Seems as though you have it on the day and tech continues to be the story. Not surprisingly, the biggest drag on the s p 500, Technology Space including apple and amazon. Down 7 since last thursday before the selloff began. 5 over that time, it is still not entirely clear what is behind this. Some people say this bearish for goldman sachs. Jim martin adams had an interesting series saying she thought it on friday had more to do with the ecb being less hawkish and she thought the fed proved to be somewhat hawkish, that could bring a continuation. It is interesting how the fed can steer the direction of Asset Classes. Afterorst day since 1999 slashing the earnings field. The entire grocery market this is actually down for that matter. Certainly, declines earlier and we go across Asset Classes, we do not have a haven did at all. 10 year yield of about three basis points. Bonds selling off a bit. It did of a selloff for the haven yen. In bitcoin is interesting. It had been down for his worst day for two years. Hop into it very quickly and take a look. Tells an interesting story. One of seven is out of the election. We also have the bloomberg dollar index higher. Bonds selling off in the 10 year yield did climb. Year,ecember 15 of last we had the fed raise rates. The dollar yield and down. We had something similar happen in march. Bigs interesting to see the piece of this reflationary, the dollar in the 10 year yields, it does not seem to be much on trump policy the more the fed. The s p 500, can it stay out there . Joe . In washington, new questions are being raised about President Donald Trump and whether he tried to slow the investigation into russiass in 2016 election. , adding taxtime cuts that would last longer than 10 years. To bring in the National Security editor and Bloombergs National political reporter capitol hill. Newsis the latest from the regarding bill muellers expanded investigation regarding the russia investigation and how he is looking at whether donald trump tried to slow the investigation . Planning to interview two top trump intelligence officials p or the director of National Intelligence and the head of the National Security agency that will make rodgers. He wants to hear directly about theher in the aftermath of flynn firing if President Trump ever pushed them to use their influence and get the fbi back off its probe. That would be a piece of the puzzle about whether obstruction of justice to lace at all. It is the serious escalation of what is going on and it brings the close the probe much closer to the president himself. It does. Are there any parameters to bob muellers probe . Is there something he would retract or retreat from if he gets too close to any particular topic . Goe pretty much he can wherever it can take him . Remember mueller was only appointed about a month ago. Still hiring the team. He is really looking at parameters of what will be the investigation. He will not leave a lot of stones unturned but you may nsar but and if it chief rodgers last week run the hill, and they refused to say in a public hearing whether trump tor pressured or ask them layoff or get the fbi to lay off on the probe or caps off. So centers have heard testimony in a closed session. The National Intelligence director will be on in aill today doing that closed session. We expect other officials to go there in the coming days and weeks including the former department of Homeland Security secretary next week. He is really laying out trying to figure out what the scope of the probe should be at this point. , butrrect me if i am wrong am i wrong in suggesting that both the acting and former fbi director have suggested actually that there was no effort to impede their investigations as far as their concerns . In line with that, my second question would be is in the more important question now the leaks . Where did the leaks come from . Donald trumps legal team is suggesting it is the fbi once again leading the nation. We do not know where the initiallys are coming from. It is a serious i am not surprised if it is one mueller himself would have to take up with an investigation. I want to point out Something Else. You remember in terms of the mueller probe, when james comey testified week ago on the hill, he said when he was fired, the president was not subject, as far as he knew, to any investigation personally. That is what seems to be changing here as we find out a few more details about muellers probe. Mueller has a reputation for running a tight a tight ship. When he was fbi director, and that said, if you bring people into testify, they have lawyers with them. People start to increase who are aware of it and that is hard to keep a lid on. We have breaking news. Merge, u. S. Antitrust antitrust approval. Getting the ok from the u. S. Government with the u. S. Antitrust approval. It has cleared other barriers, including approval from china and brazil as well as the european commission. It was one of the last remaining hurdles. We had heard that closing the deal was slated for august after being pushed back from the original 2016 timeframe because of the delay in getting antitrust approval from around the world. We are getting that approval earlier than expected. Pop, and givef a up a little bit of losses and has come down a tad. Own for both not a ton of action either. I want to bring the other side of what is going on out in d. C. On capitol hill. An interesting story you reported regarding a change by the gop to make it easier to pass a tax cut. Explain what is going on. It has been going on underneath the surface for little while. Today has been a major momentum addition to this push to ease the path forward to cutting taxes for a longer time. Basically, the budget window under current rules requires that any tax cuts added to the deficit after 10 years automatic he within a deck it, what republicans want to do is change the rules to make the 10 year window Something Like 25 years so they can enact task us that add to the deficit for a longer time horizon. This comes as republicans are very divided on these, how to how to make the tax plan reusable, so they dont have much for much anymore. Republicans are moving toward changing the rules now that they tot have agreements on how make it revenue neutral. They have an agreement on wanting a trillion dollar tax cuts. This will create an opera with the democrats. They will hate this. They will. I spoke with the democrat on the taxwriting committee and he said he would be very opposed to this and it would be a backdoor way for republicans to sneak through big tax cuts. This on a partisan basis and they dont need democratic support to get things through. The rule has been if you are at into the deficit, you do it in a 10 year window. Yes, fears democratic objections. Made a rule change that pertained to tax cuts. Would also apply to other deficit expanding things . If they wanted a seat a huge spending bill increase not offset i revenue raisers or somewhere, would this only theoretically apply to the tax component of deficit increases . You are right on your first point. If republicans want to enact tax cuts for longer than 10 years, even if they add to the deficit, democrats can come around when they control the white house and both chambers of congress, saying they want to enact spending increases on the fast track faces even if they add to the deficit and lets do it for 25 years. Yes, this can come back to haunt them later on. Once the president has said it can go anyway, the bloomberg National Security editor and Bloombergs National political reporter, thank you both for coming out. Up, steve told us where he sees the best opportunities in real estate. It is an exclusive next. Scarlet he sees a dropoff in Foreign Investment in u. S. Real estate. In an exclusive interview he told us where he sees the best opportunities in the property market. We think the market has been in 2016. Likely in the first half of 2016, in terms of pricing. We think the markets have transitioned into what we refer to as pricing discovery, usually to theet as a precursor next direction. Something big has developed in the marketplace where buyers and sellers are not connecting on transactions. You see it most profoundly in transaction volumes. Levels, across real estate and geographies, plus or 13 down. A particular, you have seen real fall off in foreign transaction activity, activity by foreign buyers and that is very important to watch. They are such a large a large driver of volume in the recovery. Of dryear there is a lot powder. We know that Pension Funds are directing more, allocating more to real Assets Investments like real estate, and we know several wealth funds continue to employ more money out of the private markets. Dropoff in foreign transactions temporary . We think like anything else, it goes in cycles. Over the last two years, foreign buyers have been incredibly active in the u. S. Real estate market and in the primary markets. We think they are taking a little bit of a deep rough, observing what they bought, and terms oft the next in where prices are going. So rates are low across the spectrum and prices are high relative to cash flow. If we look at office and hospitality, if we look at retail, where our evaluations most stretched . I i might not look at it Asset Classes are probably by geography. Interesting in the last cycle, you mentioned all of the individual types of investors, they have been focused on to play more money into real estate as Interest Rates have remained artificially low. They have remained largely on markets. The top six in the country. When you look at the major markets, those major markets are up 40 over the prior peak level. They are up 120 . You have never seen prior cycles this type of cap rate compression and value appreciation. Our feeling is as qe unwinds and yesterday,ets rise cap rate cap royce will marginalize and what will be affected is the primary markets. Say cap rates will normalize, when we look at multifamily, they are in the 5. 526 neighborhood. I would love to say if they were in 5. 5 present area, we would be much more active in buying a lot of those. But we have seen cap rates drop in the markets on the multifamily side, we have seen cap rate below four, we have seen them dip low five to those are plus or 200 basis points inside historical levels. We are not necessarily saying we will go all the way back to historical levels. There is more permanent capital allocated today, but we think as Interest Rates normalize, cap rates have to we think it is those primary markets. It is the coastal markets. It is the large or midwest markets like chicago that really experienced most of the most of the foreign activity over the past cycle. That is the executive mansion to management director speaking with erik schatzker. The tech selloff has dragged the rest of the nasdaq with it. We will look at tech Collateral Damage next. This is bloomberg. Losing as much as 3. 5 revamping Global Operations, under armour and adidas. Daily move compared to past moves. Were looking at this upper panel here. It is a distribution curve of the daily turn over the past three months. This is the move here off by more than 3 . You can see that is the biggest oneday move since march. Late march when the stock tumbled almost 7 . Was when thirdquarter sales missed analyst estimates. This this is for likely nike. We have not seen a move your than 3 . About 2. 7 . Time was quite a move for nike. It has not been a great story overall. We show the Share Price Movement in the stock is not closed more than 3 higher. The nike stock is down about 8 . Investors trying to assess the global overhaul, the changing of its business struck a structure to determine whether this would be enough to better compete against adidas and under armour. A response today. A massacre in the currency market. I like talking about it. I want to put a bit of perspective in it today overall. Losing 16 billion in market caps. 100 billion in the week. I just want to give it a bit of perspective. Bitcoin in the past five days. For those of you who care about the trade levels, we are here just about to touch the 38 stretch. More tech related technical analysis. Its what forget the tech bubble in 1999. We find this many days, over 130 where the nasdaq was trading above its 50 Day Moving Average with the recent selloff, were getting close to the white line. It will be extraordinary watching it hang above the level. A sign of its momentum. The white line catches up fast and the actual number is a breakthrough that, i expect a lot of attention on that. People are wondering whether this is it. I love it. Some context given to the recent selloff. A modest selloff. Looking at the chart, it looks like nothing. It feels very dramatic. That is what it comes down to. It feels dramatic. Looking at the numbers come we are not there yet, we do see tech shares leading on the downside. The nasdaq off by a whopping 10 per the s p 500 retreating by just a bit. What the the market closes next. No numbers for us, joe . From new york, this is bloomberg. Tech shares continue to selloff today. A bit of cautiousness in response to yellen yesterday. [applause] julia i am julia chaffee. I am scarlet fu. Joe i am Joe Weisenthal. Our coverage every weekday from 4 00 to 5 00. Begin with market minutes. U. S. Stocks closing down for a fourth time in five days. The nasdaq off by half of 1 and the dow closed down. We had been harder hitting on the nasdaq earlier. Andm looking at the imap natos imap and it is those industrial names. Pie longs fisa of the to packaging companies, but it is red all around. Energy names down two thirds of 1 . On the upside, you have bond proxies, and utility trusts 1 . G better up by half of green all around indicating most of the numbers are higher. You can see that in electric utilities. 100 of the numbers are gaining on the day. At theshares trading lowest in almost one month. It has come back a little bit here, but amazon closing 25 . 1. 25 . Kroger seeing its worst day since 1999 cutting its earnings forecast. We know that these grocery chains are dealing with lower food prices, which yes is good for consumers, but it results in lower margins. Stores. Opening 10 that is a factor as well in terms of increasing competition. Mattel shares at its lowest getting a downgrade. Nike, which we just mentioned, cutting 2 of its Global Reports , revamping its Global Operations and rethinking how quickly it could get some of its sneakers to customers. A check on snap. At the ipo that have not done all that great great you can see closing at 17. Proof that markets are priced efficiently. Ipo 17. Lets take a look at the Government Bond market. Rates are higher in this u. S. , was an increase, but we have seen rates move higher after that janet yellen conference which is perceived as being hawkish. U. K. Yield jumping noticeably today. The bank of england declined to hike rates, but the vote was 53. Three people saying on the Monetary Policy committee same patient hike rates. Uncertainty onis the economy, theres important inflation. It is they u. K. ss are laying stocking the broader trend. Adding to yesterdays gains on the relative but hawkish surprise from janet yellen heading for the first week of gains in three. We were talking about the one to watch to tie in with the week of payroll numbers. Sterling fell after weaker retail sales. Board hawks on the with sterling weakness. We will keep in mind the november nine number. Still aw you significant downsides. Relative cost of Downside Protection versus upside protection. Of the weeks post in more than two months, the government announcing information on the mining section saying it to the 30 by black people, addressing the concerns over the apartheid issue. Finally, on the commodities front, not a ton of action. Crude Oil Continues to weaken before we can below 45 a barrel. Gold down by 1. 5 . That selloff in gold and treasuries. Natural gas any 4 after bullish stockpiles reported lower inventories and what was expected. Had to the oil weakness do