relieve costs could strain the federal budget. cruz told him it is not about politics. elaine do called the response a good news story. the president responded calling critics of the puerto rico response, quoting politically motivated ingrates. ryan was pressed on the wake ofion today in the the mass shooting in las vegas that killed 59 people and wounded 500 others. once we are focused on bringing our budget up this week. bringing ite are up, we want to pass tax reform. but as one of the most important things we could do.

panel -- a house panel backed the bill last month. the first lawsuits have been filed against the trump administration. they argue restricting travel for citizens of muslim countries violates the u.s. constitution. progressimistic about and divorce talks with european union but is planning for the possibility of they may break down. >> we will honor our commitment because ours is a country with laws that obey the -- of people who obey the law.

we will challenge europe's claim line by line. mark: progress was being made to a deal, dismissing lurid accounts of crisis and breakdown. global news 24 hours a day andred by 2700 journalists analysts. this is bloomberg. julia: live from bloomberg's world headquarters in new york, i'm julia chesley. joe: i'm joe weisenthal. is what'd you miss? the response were

democrats, tom perez, chairman of the dnc speaks out on puerto rico and shares his thoughts on tax reform. and live from los angeles at 4:30. an of for ilg, the provider of professional vacation experiences. ist to give you a sense that said to have been made in recent weeks. we have seen marriott vacations that showed it would spike on the back of that news. unclear whether they have responded to that approach at this stage. >> the team covering m&a says the offer at $30 a share,

getting closer to that level now. julia: president trump is an puerto rico surveying the devastation. the commonwealth has been in trouble for months before the inrm, filing for bankruptcy may. to renewal efforts present an opportunity? let's bring in daniel. assets.e managed million in puerto rican debt. great to have you on the show. both puerto rican and the electricity companies in your portfolio? within puerto rico there are a lot of different investments you can make. have the general obligations. a lot of different ones.

>> was lord abbott part of the collection of bondholders for puerto rico? saying they would loan some money into a swap on the bonds? >> we were not part of that agreement. you have to do when you join for ayou get locked out number of times. julia: joe: if we take a look at bonds you can see the prices are incredibly depressed and have fallen in the last few days. what do you see is the prospect, how much does the prospect for puerto rico municipal finances depend on what policy response and regulations going forward? >> this is a challenging situation.

there are a lot of different investments. puerto rico bonds, for the rest of our investment most refunds are not part of it. things are tough. now the focus has to be on the humanitarian situation. making sure they get electricity. that could be a positive. julia: what it comes down to is how people are able to afford, investors in particular. affect howe damage the court might listen to arguments on that process? before this hurricane everything was in the courts. everything really is going to that point where we will have to

get back to that. they created their own constitution and security on the bonds. they created security. they are going to decide a lot. they are different actions. it is a longtime table at this point. >> would you accept a moratorium? be notncellation would something that could be acceptable. julia: what about a write-down? >> the bonds are worth more than that based on the security on the bonds. there has to be some sort of agreement. you can have different ways to do it. bonds over time. there are a lot of ways to do it.

there can be definitely an agreement. >> you think a write-down is justifiable given the damage to the country? >> if it is fair to creditors there could be some way to restructure so you don't have to pay all the amount now. they push a lot more to the future. scarlet: all right. thank you for joining us. here, lawmakers are homing in on google as part of the investigation into russian interference in the 2016 election. now, one of the reporters on this group, mark, give us more details on what you have learned. >> congress is bringing in google, facebook and twitter. it is focused on twitter and theyook very this is where

have more aggressive targeting capabilities that some may have properties through youtube, google ads, search. there is a litany of channels. data withshared google and vice versa. they are being held before congress as well. joe: a lot of attention is being paid to paid ads on these platforms. something you bring up in your reporting is a lot of the propaganda is right there on the main channels. rt, the russian network. a huge success. that has nothing to do with ads. that is out in the open. >> they have this tough act to follow. congress has pointed out russia today is a kremlin backed organization.

they have state-sponsored channels. russia today was part of google preferred, premium inventory they sold to advertisers on youtube. is a directw if it response to investigation but the timing suggests that it is. if we are talking about youtube and google, the scale of the people that saw these things? >> we do not know. the google display network hit 3 million websites across the they have this tremendous scale. today, close to 3 million in total viewership.

there is a wealth of other channels it. there first amendment issues here? have and illegal to promote what they want on these platforms. even if itsay stuff makes the government uncomfortable. >> google has been historically with the search engine has said we are not going to police content. but it is an interesting time. facebook and google took a lot of flak with the highest search result in news. they are playing this game of cat and mouse. people are able to game the system. so that probably is the focus. these actors, where is the line between free speech and propaganda? scarlet: the headline here, the

election inquiry by the senate has expanded to google. they are homing in on google services such as youtube and gmail. julia: you kind of know what you are getting with al jazeera or rt. there is a certain perspective. scarlet: this is bloomberg. ♪

isi believe a successful fed a federal reserve we don't have to talk about that often. thed played a major role in 2009, 2011. if we have a normalized economy to goeither going to have

back to not worry about the federal reserve as much. the federal reserve played a significant role in stabilizing our economy but if we have a normalized economy the debate we have about what the fed is going to do is less important. it is going to be more important about how we are driving innovation and jobs in our economy. scarlet: seen and not heard. markets closely watching president trump search for the next fed chair. two names are at the front. jerome powell.nd next guest prefers one of these picks. joins us now. joe: wash and powell. thinkis the one you would would be a good pick? warshon't think kevin would be a good pick.

he has an open mind. and a steadyence hand. if you love listen to his speeches he seems reasonable. -- warsh was a governor. ben bernanke relied on him as a liaison to wall street. he hasn't distinguished himself that much since he has left. some criticism that cover the pages of the wall street journal haven't been well thought out. joe: specifically what did he say that you think was not logical? >> he argued about how the fed should be focusing on nonwage prices. one flaw in that is the fed already does focus on nonwage prices. the fed focuses on inflation

expectations. they are driven by goods and services households spend frequently. like food and energy. if inflation expectations are incorporated into the forecast, then they are focusing on nonwage prices. yellen's inflation model incorporates goods prices. washington said the fed doesn't have a strategy. that is not entirely fair. strategy.s a there has been research, not just on wall street but within the fed looking at how the summary of economic projection the fed puts out every quarter, you can make a systemic, systemic update on the fed funds outlook based on changes. do you think he has

discredited himself based on everything you have said? how do you think the market would react? bernanke used to talk to him about the markets. someone thinks he has a reason to be good at this job. >> if bernanke have the choice between paying stuck on a desert want to haveuld his buddy with him on the island. like military leaders, they want to get the respect of people under them. warsh would have that. that was a strike against him. this is anrd individual who is keen on financial markets, looks at market indicators more than other fed officials.

when the credit markets were in disarray he was squawking about inflation and things that never materialized. alan greenspan said the job of the fed chair is an economic forecasting job. he hasn't been a very good forecaster. scarlet: does that matter to president trump? >> loyalty. >> if you look at the first two names we have gotten from the white house, that could have been someone that came out of a jeb bush. randy quarles. he has not been formally nominated. those are sound picks. there is a lot of disarray within the cabinet recently but ,ook at who resigned last week you could have seen that in a

run-of-the-mill administration. your point. my view is that maybe some of that is overdone. julia: if you had your choice, who is the best guide to do the job of anybody out there? >> i think it is important, we have seen presidents nominate. [inaudible] calling for janet yellen to stay on as fed chair. don't miss tom keene's interview tomorrow at 6:30 a.m.. we are hoping you would say stanley fischer said it would lead into this tease. 's livevladimir putin from the energy week in moscow, that panel starts live at 6:00

a.m. eastern. don't miss it. this is bloomberg. ♪

julia: welcome back. time for the bloomberg business flash. goldman sachs lloyd blankfein undecided on bitcoin. he said he was still thinking about that coin. paper were skeptical when money displaced gold. goldman is in talks with experts on cryptocurrency for a trading venture. stoporporate leader should fairies. profit first during phase one, disparity was brought down -- disparity

brought down civilizations. >> that is your bloomberg business flash. what investors are going to do about it. let's move on to our stock of the hour. shares of delta airlines on pace for the best day since 2015. >> big move. -- it cameeport this versus 3%. that is cost per revenue. -- all actually worse that is weighing on the airline. less bad numbers. a relief rally based on that it

hit guidance. scarlet: we see that all the airlines are rallying. is that based on delta's numbers? >> it is. that the other airlines are rising on this. there will be follow through. i think this is volume add. it really should not be carried through to united. others,irlines and some the fact that delta came in better than expected, better than expected. bloomberg,to the this tells the story. this is a year to date chart on the airline. orange and blue, take

a look at united. they are saying it just doesn't make sense. person, onechnical the verge of 10,000. what does that tell you? transports and the industrial -- is there a bigger meaning? >> i am not an expert but we have the new highs. it is a confirmation whether or not it carries. julia: warren buffett is going to talk about that as well. >> he has been reducing positions. he has had a nice profit.

scarlet: the market close is next. major indexes at record highs. this is true. this is bloomberg.

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u.s. stocks adding to records. the s&p 500 had a record after american carmakers report the best month on the year. i am julia chatterley. scarlet: i am scarlet fu. joe: and i am joe weisenthal. if you are tuning in that live on twitter, we want to welcome you to our closing bell coverage. scarlet: let's begin with our market minutes. record highs yet again for the major indexes. nasdaq. doubt, and you can see there are modest gains. we are looking at tight ranges for the major indexes, even as they climb. 0.2%. the 2000 is up by yesterday, the small caps were outperforming. but today they are in line with these modest advances. the brussels 2000 is up at a record high.

i want to highlight the automakers, gm, ford, gaining on auto sales. that indicates things are going pretty well on that front. they are poised for the best month of the year, thanks to that post-harvey bump. this is falling results for the month of september. breaking news we told you about earlier -- marriott vacations has reportedly made a takeover offer for ilg, the timeshare operator under pressure from investors. according to people with knowledge of the matter, marriott making an offer that values ilg at $30 a share. it is not clear if ilg responding. but hilton grand getting shares close to $40 a share. joe: let's look at the government bond market, not much going on today. to year yield going down. 10 year yield is down to 2.33%.

the jobs report friday will probably be the next major macro mover. we will keep an eye on that. 10want to take a look at the 2 spread. part of the story, a comeback for the dollar, reflation is not much. but may be the spread, which has been narrowing since the beginning of december, bottomed earlier in december and has been picking up a little lately. still the long-term trend is down, but some signs of life over the last month. julia: we are seeing stock growth for the u.s. dollar. but this was dominating the dollar trade. numbers we gathered wednesday, payroll on friday, lack of data was the dominant theme. a bounce in the euro, after the catalonian election. as you can see, softness in sterling.

that construction pmi data weakness weighing. , want to show you g #btv 2512 showing the south african rand. it reversed all the gains it had made since 2017. it posted the biggest monthly drop in december. obviously we have concerns about the federal reserve, if it goes high, not necessarily great for emerging markets. and we have the african national congress at the end of the year. a lot of people looking at the south african rand and saying, hmm. joe: let's take a look at commodities, starting with oil and gold. oil has been pulling down. yesterday the selloff was larger. hanging in there, about $50 a barrel. gold futures continue to selloff, also modest, but the momentum is to the downside. i want to look quickly at the

--,res mullet and gold party in the front business in the rear --, i forget what it is. [laughter] they are calling it the shape of as a resultuture, of harvey. you see the long-term prices. in frontof a contango of the west texas curve. an interesting shape. julia: we will have to discuss that in the break. scarlet: do know what a mullet is? julia: we have a different term in the u.k. scarlet: "what'd you miss?" the s&p 500 making new highs, yet again. investors feeling optimistic about tax reform and the slow said right schedule. what to expect for the fourth quarter? we are joined by jeremy siegel,

joining us from philadelphia. fessler, what is your outlook for markets? a lot of things are coming together for gold. i think it looks like a good quarter. earnings look very good. the earnings season will start in a week, 10 days. so far we have had very few pre-announcements warning of earnings shortfalls. firms have been fulfilling their earnings promise this year, better than any of the last three years i have seen. i think tax reform is icing on the cake. if we do not get it, there will be disappointment. not think a mammoth selloff, given the earnings and motorist interest rate. i do not thinks,

it is a done deal for increase in december. you layfessor siegel, out several bullish things, but people will say the markets reflect that, valuations are stretched. tapepoint to the schiller to say we are at levels we rarely see, if you go back a long time. in your view, do those tools help you in terms of lightning up on the market or knowing when the future returns will be weaker? mr. siegel: i have written a published paper and done research on this. to show what it is not a good indicator and it has not been for quite a few years. -- years, for future returns, mainly because of the distortion the change in accounting. he has a 10 year average that still includes the earnings of the financial crisis.

that will wash out in a few years and make the cape ratio look better. i do not think the cape ratio is something i would point to. we are selling 20 times this year's earnings in a low interest rate environment. that is nothing to be scared of. the fact is, i think we will be staying in a relatively low interest rate environment for quite a while. i think we should not be a normalabout 15 as p/e ratio. we should be thinking about 20 of them more normal p/e ratio. maybe even a bit higher than that. joe: let's talk about the relationship between race and equities. let's of interest in these days in the big tech companies. crowded trade into the fangs. i have a chart here showing the inverse relationship between the 2s/ stocks do -- versus the 10s spread. we have seen a touch of

weakening in tech. how much are some of these popular equity trades essentially duration trades? is hard to match that up. a bigger spread is supposed to mean a stronger economy. obviously, i narrower spread or flatter inverted -- that is something to worry about. we are not there. as you pointed out earlier, we basically have been flattening the spread until the last couple of weeks. one should also note about this spread that economist that had been looking at this spread normally caused by risk premiums on the long versus short, say there are many persuasive reasons those premiums are down. what is the bottom line? the bottom line of that is, a narrow spread is not as threatening as it used to be in the termdata because

premiums are down, people use long-term treasuries as a hedge against equity risk. this did not happen in the 1970's, 1980's, 1990's, when you had much more comfortable term premium. we have to be concerned about the spread. i know the fed is. i talked to fed officials, i was talking to pat harper, who said we have to watch out, not to invert the spread or get close to inverting the spread. it is something on the mind of the fed officials. in your experience of having conversations with those of the federal reserve, you think they are aware nothing doing enough about valuations, the complacency about the list and all the votes we have seen of cross asset classes? or do they need to do more? mr. siegel: we remember back to

the irrational exuberance speech greenspan made in december of 1996. that was about three years too early, before we actually did peak. the fed has and janet yellen has said, we find valuations historically high. but she always says, given the low interest rate structure, we do not find that to be threatening to economic stability. i think that is basically the way they are looking at it. i do not think equities are really big -- a threat, one way or another to the fed. to be sure, if we see a spill in the market for any reason, the fed has to take that into account, as we always have, what that might mean to the economy. the right now, i do not think the fed is overly worried about the equities market. scarlet: jeremy siegel, thank you.

we have a live press briefing from the las vegas police department with an update on sunday's shooting. we will bring that live once it begins. from your, this is bloomberg. ♪

mark: i am mark crumpton, it is time for first word news. president trump is on his way back from puerto rico after surveying the damage left behind by hurricane maria. the president noted the recovery effort on the island will be expensive. pres. trump: i hate to tell you, puerto rico, but [indiscernible] we have spent a lot of money on puerto rico, and that is fine. we saved a lot of lives. the president said while "every death is a horror, --,"

he made a distinction between a real catastrophe like hurricane katrina and what happened here in puerto rico, where at least 16 confirmed us a been reported. at least 45 people remaining nickel condition in las vegas area hospitals, which were overwhelmed after saturday night outdoor mass shooting. they are at full patient capacity. stephen paddock used equipment that would allow his assault weapons to deploy rapidly and continuously. the death toll in las vegas stands at 59. authorities a paddock killed himself. thewhite house is weighing issue of replacing social security numbers as personal identifiers in the wake of the equifax ciber hack. a cybersecurity coordinator said it is a flawed system and has outlived its usefulness. they are hoping to find a better

system using modern technology. people pulled took to the streets of barcelona to protest the use of force by police during the disputed referendum, werethan 800 -- 809 treated for injuries, most were not serious, during clashes during sunday's vote. said's justice minister the country will use all the tools at its disposal to enforce the law, including suspending the region's autonomy. 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. scarlet: we are still awaiting a live press briefing from the las vegas news department with an update on sunday's shooting. we will bring that to you live, once up against. in the meantime, the president has made his visit the puerto rico and is on his way to go into las vegas to take stock of the scene there and meet with

first responders. julia: he did talk about the situation when he arrived in puerto rico. he was speaking to reporters and said, we will talk about gun laws as time goes by. he did say the las vegas shooter was a sick individual. clearly on his mind and he will be going to las vegas tomorrow. joe: the police briefing comes amid an extraordinary number of questions about just what happened. very little insight if any, into the shooter's motive has been revealed. how theee of planning, weapons were pertained to perpetrate this attack, just an extraordinary amount of unanswered questions going into this press conference. a lot of things we want to be finding out. julia: a lot of unanswered questions. while we wait for that press conference to begin, we are showing you live pictures -- let's talk to one of the other critical subjects that president trump is dealing with.

he has been in puerto rico today, on the phone from san juan is bloomberg news reporter jordan holland. give us a sense of the scene president trump was greeted with, and the conversations he has been having with officials in the region. jordan: he landed in san juan today, where he went to a cathedral, sus and people who have been dealing with the aftermath of hurricane maria. still, 93% of the island does not have electricity, still long lines for gas stations, and more than 8000 people still living in shelters. joe: there was a common today from the president -- maybe he perhaps said in jest, he talked about the disaster in puerto rico wrecking the national budget. how will that play in the domestic media and the

conversations people are having? jordyn: when i was talking to some residents here in puerto rico after those comments, it did not go over well. stillere saying, we are americans and should expect aid from the federal government. we are going through budget issues, obviously, that we are still going to have rescue missions. thank you so much for joining us by phone. president trump's leadership is being tested. the question is, how will democrats respond? we are by kevin cirilli with a special guest. kevin: we are joined by the democratic national committee chairman, tom perez, who earlier this week traveled the puerto rico. mr. chairman, you have been to puerto rico this week. you watched the president's remarks from puerto rico today. what do you make of all this? tom: i was there yesterday, as you pointed out.

i was in the south-central part of the island. the metropolitan area, about one million people. it was devastation. what struck me, people are still suffering. they need water, food, shelter. the mayor cannot communicate with anyone. satellite phones do not work. nothing works. i was struck by what i saw, and frankly, equally struck by what i did not see. there was no fema, no federal presence of their at all. there at all. kevin: why aren't they there? size 14ause there is a need and we have a size 4 presence. one said it was the worst devastation they have seen, and there has not been a requisite sense of urgency in this administration. when they call it a good news story, i do not know what planet they are living on, because it

is an unmitigated disaster. they need help, action, they need it now. the most remarkable thing, the airport is open. the port is open. you can bring things in their. -- there. there was virtually no presence, i saw no one from fema. when you talk about breaking the budget, he did not say that in texas or florida. ricans are american, they do not want to be treated like second-class citizens. i saw a set of houses that were devastated. what inspired me was hanging behind one of the houses, proudly, was an american flag. they are saying, we are americans, help us. kevin: so many people concerned about the situation in puerto rico. just as much growing concern over las vegas and the tragedy in las vegas. we are watching images now of a

police briefing in las vegas. mr. chairman, i have to be candid here. nothing got done after sandy hook. we are having the same conversation again after this mass shooting. you really expect anything to get done now? tom: we are going to fight like heck to make sure something gets done. in this year so far, and 273 mass shootings. when i hear people say, my thoughts and prayers are with you, i say thank you, that is fine, but we need action. kevin: i hate to interrupt you, but i think most people watching this and following the story one action, they don't care if you are democrat or republican. the third highest-ranking republican in the senate told reporters on capitol hill earlier today that lawmakers might consider legislation ties --g americans' sbili

abilities to turn semiautomatic's into holy automatic weapons. is that a middle ground? tom: i think there is middle ground. as long as we understand, second amendment freedoms, which are important, they can coexist with commonsense gun safety. the voters of nevada, by referendum, past a lot relating to background checks. but the republican state attorney general would not implemented. we can do a number of things that a federal level that are totally consistent with its second amendment freedoms and will help reduce the threat of gun violence. will it eliminated? no, it won't. but we have gone to too many funerals and have seen the senseless violence not only here but in sandy hook and aurora and elsewhere. the time for thoughts and prayers is long since over. the time for action is now. i am going to keep fighting.

i know my colleagues in the house and senate will keep fighting, because we only to the american people. the majority understand that commonsense gun safety and second amendment freedoms can coexist. --ple need to stop cap towel kowtowing in being so frightened by the nra. democratst about when have control of the white house, house and senate? no action taken on gun control. tom: again, the filibuster was a stranglehold. you look at the -- kevin: nothing was brought forward. tom: let me give you examples of action the president did take. and it was reversed. each of the executive action to limit the ability of people with serious mental health issues to get access to a firearm. what did donald trump do shortly after he took office? he reversed that, to make sure

people with serious mental health issues can get access to a firearm. that is not common sense gun safety. president obama swung the bat. but the an array has a stranglehold on too many -- but the nra has a stranglehold on too many. 90% of the american people support background checks. he should not have these semiautomatic weapons. those are not hunting weapons. those are weapons of mass destruction. kevin: so much happening on capitol hill. puerto rico, the tragedy in las vegas. the republicans in the past couple days have unveiled a tax when. folks therats are ministration would like to work with. nonstarter plan a for democrats? tom: this is a massive break for

the 1% at the expense of everybody else. this will blow a hole in the federal deficit. this is trickle-down economics again. what we want to do is make sure the middle class -- kevin: could any democrats get on board with portions of this bill? tom: when you eliminate the atate tax, which only affects percentage of the top 1%, that is a massive tax break for the wealthy. you look at the impact of what the proposals are, middle-class chastisedre dennis a under this proposal. like a health care bill, it was done behind closed doors, with no input. that is not how to run a railroad. that is why the health reform bills failed. that is why tax reform is

stumbling. this is not tax reform. these are tax breaks for people who do not need them. the top 1% do not need another tax cut. kevin: according to the plan, essentially, yes, the low impact -- low impact -- income bracket would see a loss, but they are doubling the standard induction and child tax credits. on the issue of the corporate tax reform, you look at the numbers, you have seen it, i am really need america to have such a corporate tax break in order to be competitive in the world? we have one of the highest in the world. i admired about one ceo recently, he said i would rather have the dream act pass than having tax reform. that would mean more to my business than having tax reform.

i admired that. again, there is a group of very wealthy people in this country who have formed a movement called "not a penny more." they are right, rich people do not need another tax cut. numbers,crunch the when you look at the overall effect of this, this was a major hole in the federal budget. they will come back and say, we cannot fund meals on wheels because we have a budget deficit. we have a budget deficit that was of your own creation. we saw this when bush took office. we saw clinton handle surpluses as far as the eye could see. and george w. bush enacted tax cuts, they said it would lead to growth. we know those projections are absolutely unrealistic. we have to leave it

there. so much to talk about, thank you very ♪

mark: i am mark crumpton, it is time for first were news. president trump says the man who police say killed 59 people and wounded hundreds of others at a music festival in las vegas was "a very, very sick individual." the president departed for a trip to hurricane-ravaged puerto rico. he called the gunman demented and said, we are looking into him very seriously. asked about gun laws, the president said, we will be talking about gun laws as time goes by. the u.k. is trying to tackle online propaganda from islamic state. extremist to repeatedly watch

terrorist content on line -- online could get up to 15 years in prison. they say over the last year, islamic state reporters -- supporters have sent out propaganda tweets in english. in the last few months there have been five terrorist attacks in britain. thousands of additional american troops president trump has ordered afghanistan will cost us over $1 billion a year. that would bring the total bill for fighting america's longest war to $12.5 billion, annually. jim mattis also said the afghanistan military and police forces are fully engaged in combat operations for the first time during the 16-year-old war, and are suffering fewer casualties as they continue to improve their confidence on the battlefield. republicans are considering changing, not ending, state tax deductions. this, in an effort to secure votes from states like

california, new york and new jersey. the house ways and means committee chairman jim brady met with committee members last night. measures discussed included capping the deductions for top earners in allowing individuals to choose between deducting mortgage interest or property taxes. 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. scarlet: "what'd you miss?" chairman aboutr the company's widening data breach. consumer is affected, more than 145 million in total. they discussed to the events earlier today. >> my understanding is, suspicious activity [indiscernible] >> it could be a breach, right? >> it was deemed suspicious activity with no indication it was compromised at that time.

we had no idea it was excellent traded up at time. scarlet: let's head to the congressman, thank you for taking the time to speak with us today. it is clear lawmakers are outraged in equifax's response and how they handled the full data breach. in terms of the solutions, one of the options on the table that have been discussed that the company is open to? >> first and foremost, the subcommittee's duty today was to get these facts out. we have three hours of questions going on. they came down to, people are amazed, the best word for it. we heard that starting back in march, the company was warned there was the potential problem with software that needed to be

patched. they had that warning in the company, nothing happened. time goes by, we get to where we are today. it affected over 145 million people. they may well have their information stolen. said some of the big thing we want to get done today is get the facts out. there are laws on the books. when you look at the laws that are out there that are supposed to be followed, the question is now, were they being followed? also, on the regulatory side. there are specific things you have to do to make sure you're protecting the consumer information and keeping a secure. joe: obviously, equifax made some gigantic blunders. i guess more information will come to light, as you suggest. perhaps we will see how it conflicted or didn't with the laws on the books. morehere will be a lot hacks. companies have more data on us that will get hacked in the future.

is there anything that can be done from a big picture, regulatory perspective, to change the fact we have to give up so much private data to get a cell phone, to get cable, to open a credit card? basically ensuring these storehouses that hackers want to target. i have served on a couple cybersecurity task forces, we moved to the autonomous vehicle legislation through my subcommittee. one of the things we talk about is cybersecurity and making sure things are safe. you have to have redundancy built-in. home,ike back [indiscernible] i have told people, the day you think you are secure is the day you are probably gotten hacked. it means having a redundancy, but making sure you're keeping up on things. today, the warnings were there, the warnings were given.

within the company, things were not done. and theto go back company did not do what it was supposed to do, not only when they were told to do it, but within their own company. they were told to be doing things that they failed to do. we want to make sure the consumer's information is safe and secure. looking at the laws we have in laws right now, did those in place enable them to meet what they were supposed to do? or, did they not meet the statutes? what we heard today, things were not being done at equifax. scarlet: speaking of hacks and problems, yahoo! coming out with a new information, all the user accounts were affected by the august 2013 hack. this is not a new security issue, but yahoo! is sending security notices to those accounts affected.

the information stolen did not include bank account information or payment data. w but that was a lotider -- but that was a lot wider than previously indicated. seem to be equifax highly lacks on the security, whothere is confusion over was involved. are you confident after speaking with the ceo today that the company was honest about the leak and disclosing them? you read thehen testimony and heard the testimony today, it was hard to believe what you were hearing. this started back in march. you heard that things were not done. it was not until you were getting into july before they started to say, there might have been something. 15 and the august board of directors not being informed until august 24, at that time.

of course then, the american public not being informed until september 7. julia: are you concerned someone is lying here? rep. latta: what are hearings are forced to get this testimony out. there will be more testimony that will come from other committees. the fbi is investigating the breach. what we had to hear today was from the former ceo as to what he saw happen. at the same time, it was hard to that this could be happening because you have that situation again where this started in march and they do not know when the hack occurred, because they had all the information to prevent it from happening. joe: one of our colleagues wrote a great piece recently talking about the huge ramifications on his life from being a victim of

identity theft, making it difficult to get a mortgage and so forth. in your view, does more need to be done on the recourse side so victims of these breaches can get their life back and get compensation when a sloppy behavior by companies causes their lives to be destroyed? the ftc, federal trade commission, they will be doing their investigation. you are absolutely correct. we handle issues for constituents. they have had some kind of a hack on them and they need to get help. are with the irs, they hacked and the irs may not send back a refund check, even. a lot of things happen to people when you have these breaches. one of the first things everybody did was go online to see, where you affected? sure enough, my wife checked, and we were affected by this breach. that is when you start saying, how do we protect ourselves going forward, and make sure you

do not have someone else out there hacking into your accounts? they are saying things that could damage your credit rating. it is very, very important in this digital age we are in. the name of the subcommittee was even changed going into this congress from congress, manufacturing and trade, to digital protection. the digital age is upon us and we need to do everything we can to protect people out there. julia: bearing in mind as you pointed out it is deeply personal for you and your wife, we have democrats on the committee saying, we need to mark up this bill by the end of the year. will you be supporting and pushing the republicans to meet them halfway and try to get something passed after so many months and years of bickering over this and no solutions on standards? we will have other committees here also looking at this.

after we take everything we heard today, that is when the subcommittee and full committee will look at, where do we go from here? the big part today, is, get this information so we can move forward in the right direction. what we're here to do is protect the consumer. scarlet: consumers are looking for some kind of action taken. congressman bob latta, thank you. 140 5 million people, that suggest there should be some pressure. scarlet: office depot is buying total consideration about $1 billion. this deal will be extended by new debt. 45 million new shares issued, as well. in addition, office depot lowering their third year outlook, saying sales are down 7% 8%. cap aroundting in $135 million. this is bloomberg.

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julia: "what'd you miss?" the future of publishing. let's head to the "vanity fair" summit in los angeles. emily? i am here with a longtime editor of "vanity fair," for 25 years, mind you. youryear, you announced leading the magazine at the end of this year. why? for 25use i have done it years. wanted to take a break. i have worked solidly for the past 39 years. in the third act, i would like to find out what it is. emily: you made a point of taking on trump. why not stay and continue that?

>> i was originally going to leave in april. the election next that and i decided to stay on for the first year of the administration. the next administration of "vanity fair," howdy hope they will cover it? graydon: it will be up to them. that was a personal mission of mine. one was, the iraq war. and the administration of donald trump, which turned out worse than i expected. it bears examination, which the press is doing an amazing job. we'll see what happens. emily: in the era of fake news and misinformation, you have newew technology companies like google and twitter in the crosshairs. they will be appearing before the intelligence committees in congress. what is the responsibility of these platforms? graydon: at a certain point,

they are publishers. if you have a newspaper and run a letter to the editor written by somebody not on your staff, and it is inflammatory and potentially libelous, you could be liable, too. once you get into this business, you have to take the responsibilities, ensuring what you publish or present is accurate. they will figure out a way to do it. emily: what is the future of the magazine business look like to you? graydon: it will change. it has changed dramatically over the last 50 years. it will not be as robust as it is now. great means of getting people to do things they have not tried before. we have anity fair," very healthy digital business. we would not have had that 10 years ago, if not out of need,

and organic growth. emily: how much longer will there be a print edition of "vanity fair?" graydon: i think for as long as you are alive, possibly. you are a young person. emily: will it have the same thickness, glossy pages? graydon: i think we are going through a temporary lull. quality advertisers will realize everything they want they cannot necessarily get in the digital space. there is nothing quite like a magazine for presenting something to urge other people to buy it. it is right there, hard to avoid. you can't be hacked and disrupted. the magazine is a brilliant invention. magnetpublishing recently passed away. you think they have the same commitment now that the industry changed? graydon: publishing is in their blood. they have enormous commitment to and changing it in

the ways that will have to be changed over the next five to 10 years. this is where we are, does this live on? this will definitely live on, a great combination of all we do at the magazine, bringing all this work together. it is very much a part of the magazine's dna. emily: you must have insight into how the balance of power has changed and will change. you were on stage when travis cut -- travis kalanick was head of uber. what do you make of how fast things can change? graydon: he is not gone completely, he just had a temporary setback. leaders haveness it happen in some point in their careers. i think he is an impressive young man and he will come back. emily: what you see in terms of

the balance of power moving between media and political players? probably 60% came from the world of entertainment, 20% from technology, and 20% from the entertainment business, but 1/3.t is 1/3, 1/3, it changes dramatically from year-to-year. that is what makes it interesting. emily: i am sure you have given some thought to what your third act might be. what might it be? graydon: it will roughly be within this realm. i am taking some time off. i want to lie on my back and look at the ceiling for a while. emily: graydon carter, editor of so muchfair" thank you for joining us. julia, back to you. julia: great interview, the end of an era, indeed. newy chang at the

establishment summit in los angeles. the hotly debated bitcoin and cryptocurrency space. from new york, this is bloomberg. ♪

julia: "what'd you miss?" ceo remains cautious on cryptocurrencies. larry fink told bloomberg cryptocurrencies show how much

money laundering is done in the world. >> i am a big believer in the potential of what a cryptocurrency can do. i see huge opportunities. but what we are talking about today is much more of a speculative -- people are speculating. most importantly, when i think of most of these cryptocurrencies, it identifies how much money laundering is being done in the world. how much they are trying to move currencies from one place to another. i believe you're seeing demand for it. but if we created a true global digital currency -- i hate the word crypto, a digitized currency, then you would not have money laundering anymore. you would have everything understood, everything flowing through, everything would be identified. you would see all the application.

except, i am horrified on one point. how do we preserve the system from cyber problems? is usinghe whole world this one network for financial transactions. it presents a lot of systemic risk. julia: that was larry think, ceo of blackrock. joe: we have a breaking headlines, telling the bbc they will declare independence in the days after that referendum on saturday. that had been speculation a declaration of independence was coming. now it appears we will get that soon. julia: we do not know what is next. vote, even did not 90%. isse that did vote, yes, it uncharted waters. eightt: king philippe also weighed in -- also weighed

in, saying they are showing unacceptable disloyalty that has no room in his democratic state. julia: he has to stand by that. that is the line taken by the europeans, as well. you have to take a step back and say this is not allowed. scarlet: they have been awfully quiet. have, some said the central government was pretty fierce. joe: on the one hand, they do not want to be given any -- giving any tacit endorsement to an independence referendum. but they do not want to have images of people bashing in polling places, that violence seen on the streets in the 2017 e.u. democratic country in the e.u. -- 20'sependence claim, democratic7 e.u. country. what can we get from it

in order to take a step back from the brink? we will see. a programming reminder, and interview you do not want to miss. russian president vladimir putin putin speaks live in moscow about global oil economy facing lower crude prices. i am sure they will be talking about the tensions in europe and spain. that is starting live at 6:00 a.m. eastern. from new york, this is bloomberg. ♪

scarlet: stanley fischer, vice chairman of the federal reserve will be on bloomberg surveillance exits: 30 a.m. eastern time. joe: i will be watching the u.k., theresa may concluding that conservative conference. julia: and president trump heads to vegas tomorrow to visit the families and relatives of the victims of the mass shooting. scarlet:

anchor: you are watching "bloomberg technology." president donald trump visited storm ravaged puerto rico today,

shook hands with the san juan mayor he insulted on twitter, and says relief costs could strain the federal budget. they are short on food, water, medicine, and other supplies nearly two weeks after hurricane maria. defense secretary james mattis told lawmakers that it is in the u.s.'s strategic interest to remain in the iran nuclear deal that president trump has said he wants to scrap. in mexico city, three more people have been confirmed dead, bringing the death toll of last toth's magnitude 7.1 quake 366. of the deaths were in the capital cities. the first lawsuits have been it'--against the that against the president's latest travel ban.