out the red ink as part of the island passes recovery after hurricane maria. thing could money for puerto rico p are mulvaney adds we will not be offering a bailout for puerto rico or for current bond holders. cochairman of the senate and the intelligence community says the russians hacked into political informationlease here in the presidential election. statusublican gave a report and investigation. the probe began in january. dozens of intelligence and thetical officials assess extent of russian interference in last year's election. president vladimir putin says russia may extend a deal with march intove -- past

2018. putin spoke on a panel moderated by the senior executive editor john -- >> i am saying we don't know it yet, and the question is asked we decide tonce extend or not to extend, that is when we will decide on the timeframe. mark: president putin says he will wait until the end of the before makingment a decision. a quartet tropical depression that could ground where came will hit the gulf coast late sunday. dealing another blow to searchers growers. the system is expected to hit hurricane strength.

global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. paired thisumpton is bloomberg. -- i am mark crumpton. this is bloomberg. ♪ julia: we are 30 minutes on the close of trading here in the u.s. -- littlening changed. joe: the question is, what did you miss? president and first lady melania trump are visiting and they are set to make marks and him -- remarks in a moment now.

president trump off his advisers have given a short list. drums, on whipping away the debt is leaving strength -- scrambling. >> preparing for new faces a new policy. >> you need someone who has the flux ability of mind to take a different route edited -- at a particular moment in time over the next year or two. someone who has the capacity to lead a large and complex committee, to agree. >> whoever comes in will spent time and trying to figure out

what they see that might be different from what they believe. we will not see a major change in monetary policy in the short term. >> not a traditionally trained economist but he happens to be the most -- money guy today. that is why i think he might win. solaris, his30 for radical change realistic? fetch your yellen spoke about community banking. let's bring in carl. fetch your yellen spoke about community>> you haven't used thn a while. great to have you. is it really a final list?

>> we heard from president that the decision will come in the next two or three weeks. >> we heard from president that the decision will come in the they have narrowed it down and notable names are dropping off that list. hover dropped off the list. i think john taylor of stanford has been deemed too hawkish for the president's agenda. that name seems to have slipped off as well. >> jeffrey added another name to the list. i had not heard that one before. what are the other dark courses that might be out there? >> who knows with dark horse candidate. by definition we're not looking at them. in terms of the dark force he has credentials managing the tarp program during a financial crisis. he has experience at fed. an outsider quality president trump would be looking for.

he is certainly a low rates guy, which the president also, that is a key point on his litmus test. one holdout is he has been relentless in his too big to fail campaign. that may be one disqualifier for him. what yous interesting said about trump being low rates. a lot of republicans over the last several years, conservatives have slammed low rates what you said about trump being low rates. . trump departing with many republicans, traditional republican he is not he is a real estate developer and they have a conventional view of that interesticy rates are the throttle of the economy. trump is no different in that regard. not looking to be creative on the policy front. rather just accommodative. quincy also said on the campaign trail in 2015 that a weak dollar was good fran because of

international property getting translated second two dollars. reasons for him. terms of the big likely names, who would be the most disruptive to the status quo and force on holders fed policy watchers to reassess the outlook? depending, he would be a big of -- a bit of a destructor on the too big to fail issue. a former governor and also quality to him as well, critical whatnot,d forecast and he would be a destructor as well. we are talking about conventional republicans and trump republicans, he would be more an ideal pick for trump republicans. that is not the direction we are heading -- the two front runners -- >> opposition from both the left and the right. it is not as if he would be a

slamdunk. slamdunk. and republican credentials. it janet yellen is modifying postcrisis financial regulation, too strict, then -- is the substitute. count yellennot out? i always ask these questions. >> i think trump once a supply-sider who is willing to a creative suspension of disbelief in terms of tax cuts and whatnot. either get that from a stereotype supply-sider, or a dyed in the wool economist. candidatesupply-sider , a low interest rate fed chair

because she is an economist willing to consider that maybe full employment is meaningfully .ower relative to past cycles maybe they could do something about labor force purchase a patient. are the next year's guided more by that person's view of monetary policy or the ownership ?hat carries over >> i do not know that there will be that much ownership. you have regional president rotating in and out. fedould be a very different relative to what we have all come to know and love in the last eight to 10 years. >> re-think trumpcare is what everyone else thinks? >> i don't think so. i think he will listen to some degree.

i do not think he wants the fed chair to be a total tractor. he wants them to be complacent to his policy. they have to promise to not stand in the way of his tax agenda. >> he makes everything some -- everything about jobs. classic cannot have the fed slamming on the brakes. >> this is a question i've always wondered. what if he does not fill as vacant seats? >> he can operate as a bare bones committee. i do not think that is the priority for him right now. when we get a chair picked, the debate will go to who is the vice chair? not the samer is philosophy or ilk as the chair and this is thing up for the

fed. maybe the vice chair setting up the recipe for drama. >> an understatement. thank you very much. coming up, john spoke with david westin about his attempt to take on netflix and amazon. this is bloomberg. ♪\

scarlet: we are awaiting president donald trump to make remarks in las vegas in the wake of the deadliest mass shooting in u.s. history. the president has been meeting with families of victims and law .f -- law enforcement

he was speaking earlier at the university medical center and discussed the situation with roast responders. conference,ns the we will bring it life. >> timeframe look at some of the biggest business stories in the news now. elizabeth warren grilled richard smith on capitol hill today. smith testified before the senate banking committee. the breach stole the personal dater -- personal data of millions of americans compromised. they may actually benefit from the breach. >> from the second that equifax announced this massive data breach, equifax has been making money off of consumers who purchased credit monitoring through this. >> unless congress gets really serious about holding major institutions accountable, warren says nothing will change. discussions

according to two people with knowledge of the matter saying the potential would boosts focus on retail investors. the world's largest asset manager will be investing in technology in part to diversify revenue. capital preferences gather data investors needs. texaco is betting bigger on e-commerce. more companies make adjustments following amazon's deal with whole foods. a movement with 200 employees to boost growth salesould push e-commerce to $1 billion. it raised its forecast for the year. bloomberg business flash. >> in this case, stocks.

abigail doolittle has more on what is going on. >> a remarkable job. it's worst day since may. a lot of volatility for the over the repeal and replace efforts spirit today is an even bigger drop that appears to be caused by a comment affecting community health -- a lot of hospital stocks. saying that they are affected by congress failing to meet the deadline, which is likely to eat into free cash flow in the fourth quarter. it comes out of medicaid. we have a graphic that really medicaide exposure to , 18.3 most well above 25%

percent life .16%. getting hit a most on this. joe: this is not cut much attention because everyone knows they were sensitive to possible obamacare of repeal. the children's health insurance program at the and of september, not a lot of talk but as your shirt -- as your chart shows, they are sensitive to that. >> it is worth knowing that senate finance committee has planned for past or cleared away but to your point about volatility, we take . look this chart this is g #btv 4874. the index is up slightly on the year but look at all of the bumps mainly to do with her appealing and replacing obamacare. fromreceived 812% obamacare.

today, the biggest drop since on the possibility>> he thinksh care on the possibility of the chip program. that is a devastating thing for the 9 million children affected. it is not at this point reauthorized. vote. tax reform to get done. >> he has said that before. not come to fruition. >> has anything changed. these were whipped around like crazy. joe: it does not seem like the politics of health care in the in the -- will change anytime soon. >> he has been visiting first responders, talking to victims of the mass shooting, the biggest in u.s. history. let's bring in our chief washington correspondent. us any further

details? we have been discussing it over the past few hours. so many unanswered questions here. >> there are. the president having been whated because he added was previously an undisclosed visit to the hospital in las vegas to meet with victims and families as well as first responders from las vegas. the talkapitol hill, has turned to gun reform. in particular, you are starting to see some republicans, emphasis on some, to begin to talk about whether or not there is anything that could be done to prevent a horrific tragedy and the deadliest mass shooting in modern american history from las vegas earlier this week. a lot of the investigation is still very much ongoing but a firing asutiny over it is known and particularly devices that are used to make guns essentially turned into automatic weapons or have the capability to fire as such.

a lot of questions surrounding how stephen was able to obtain these guns and of course what drew him to do so. i spoke with elizabeth warren, democrat from massachusetts, earlier today in a hallway and she again renewed and reiterated cause and concern about the nation's capital loss. she along with other democrats we spoke with this week, have raised concern about how nothing had gotten done after sandy hook and nothing had gone done after orlando p are republican-controlled congress and a president who has spoken rhetoric more in line with the national rifle association on the campaign trail, a lot of folks are unsure if anything could get done now. that said when you look at what the president has said in the last several days, there could be a situation where potentially something gets done. senate majority little mitch mcconnell -- a leader mitch

mcconnell said it is too early that. that. it is beginning to get underway, those comments in las vegas. joe: kevin, on the narrow question of whether to change the law regarding these stock devices, i guess -- thank you. we will not go there yet. i want to ask you about the situation with his devices. to you think there is an opening among republicans to change the law on these narrow devices -- that? the second amendment issue has become very polarizing in the united states. when you look at. there is virtually universal support trending above 90% for there is something of and forth of laws on the but -- sometime of enforcement of laws on the book and looking at mental health requirement for those.

that said, on the issue of essentiallyces that turned weapons into automatic weapons, that is the potential common ground award here at following the horrific tragedy a centristok, democrat from west virginia and senator pat toomey, a conservative republican from pennsylvania, came forth with a bipartisan proposal that ultimately failed. you as issue, i can tell republican from self decoder earlier this week following the horrific tragedy in las vegas has said the issue of these devices is something he believes lawmakers might be able to take a look at. but again, you are also already hearing from republican leadership, most notably -- to look at gun control. but again, you are also already

has been such a partisan issue in many cases with passions running high. republicans frequently argue this is an act of pure evil, a madman. a lot of contentious debate happening. >> the question is how do you legislate for that? >> it is something republicans have not been able to answer or at this point not willing to. you mentioned two republicans who are perhaps taking steps toward addressing gun laws. who in the white house would be engaged in this? what have you heard in terms of a voice that might help to guide the president in that direction if the white house wants to move that way? >> a great question. first and foremost, the white house public a has been saying it is too premature at this time to talk about any specific policy point. we heard that just the other day

from the white house press secretary, sarah huckabee sanders p are second point is just taking a look and examining president trump's position on gun control and the second amendment over the past decade and before that when he was a private citizen. if you look back at what private citizen donald trump the businessman has published in some of his best-selling books and publications, in the early 2000's, he authored a much more centrist position on the second amendment. it was actually used against him during the republican party -- primary. aser conservatives such senator ted cruz actually criticized him for that position. on the campaign trail, he adopted rhetoric that was much more in line with second amendment activists and the nra. >> we see the president taking to the podium there.

they have shown the world that incredible caret -- courage and resolve. that is a special place. at honored to be here today the police department. thank you to our police, our firefighters, and of course, to sheriff lombardo. an incredible job we have done. hello, mayor goodman. [laughter] trump: senator heller, majority leader -- where is kevin? kevin mccarthy. all of the great congressman we have with us today from both

parties, we are honored you could be with us. on behalf of the grateful nation milani and i thank each and everyone of you in law enforcement. in the depths of horror, we will always find hope in the men and women who risk their lives for hours. the mass murder that took place sunday night fills america's heart with grief. america is truly a nation in mourning. house -- the hospital earlier today were many victims are still recovering from their wounds. we ask god to ease their suffering. andto speed their healing we pray for the recovery of the injured and those injured officers who bravely threw themselves into danger when duty called. we grieve the loss of the law enforcement personnel who were

killed in this vicious attack. goingamilies tonight are to bed in a world suddenly empty. lovedople they so dearly were torn away from them forever. our souls are stricken with grief for every american who lost a husband or a wife, a mother or a father, a son or a daughter. we know your sorrow feels endless. we stand together to help you carry your pain. you are not alone. side.l never leave your here at the police department, we remember one of our own who died this week. a very special person. officer was a proud veteran,

, a lovingsband father. his death is a tragic loss for the great nation. , a loving father. his deathwe struggle to explainr children how such evil can exist , how there could be such cruelty and suffering. by the evil defined that threatens us or the violence that incites such terror. are defined by our love, caring, and courage. whate darkest moments, shines most brightly is the goodness that thrives in the hearts of our people. that goodness is our lighthouse and our solace is knowledge. the souls of those who pass are now at peace in heaven.

here on earth, we are blessed to be surrounded by heroes. as one eyewitness recounted this week, while everyone else was -- police officers were standing up as targets just trying to direct people and tell them where to go. the officers were standing up in the line of fire to help those in danger and find out where the horrible shots were coming from. words cannot describe the bravery that the whole world witnessed on sunday night. death anddefied hatred with love and courage. when the worst of humanity , thees, and strike it did best of humanity response. -- responds.

loved ones. americans -- into a hail of bullets to rescue total strangers. joining us today are many of the heroes who are here during that horrible moment, that horrible night. including las vegas metropolitan police officers, tyler peterson. stalker.ian arun officer peterson was on his second day on the job when the shooting began. i was in the hospital. he joined a group of officers rushing between flying bullets to clear the fairground and save lives. the officer was off duty, attending the concert. although she was unarmed, as

soon as the shooting began she threw on a yellow police vest and began evacuating victims. stalker, rushing to the scene for his loved ones and when he couldn't find them, he began helping every person he could. as he recounts, "we used the plastic terriers as gurneys to carry the injured to transportation. i made splints out of whatever i could find and used anything to stop the horrible bleeding tier code -- bleeding." among the wounded, the mother of his children. she is still in the hospital and we are all pulling for her. to every hero we help, every euro saved so many lives. and believe me, a grateful nation thanks you.

the example of those whose final act was to sacrifice themselves for those that they loved should inspire all of us to show more love every day for the people who grace our lives. in the months ahead, we will all have to wrestle with the horror of what has unfolded this week. but we will struggle through it together. we will endure the pain together. and we will overcome together as americans. watch overss and those who protect us. may god bring healing to the families of the wounded, the injured and the fallen. and may god bless our great country, america. thank you very much. thank you, governor. thank you very much. thank you very much.

>> president trump, speaking there. speech, very much sticking to the script here. one of the lines that gave me , "when thesponse worst of humanity strikes, the best of humanity responds." he was praising the first responders. many individual cases he's talking about there. one officer he spoke to, second day in the job. no further details on what the ongoing investigation, but it was a speech just talking about those that responded here. the heroes and heroines, those that were not injured themselves, helping those that were. for more, let's bring in our

chief washington correspondent, kevin cirilli. expectingt exactly him to provide further details but i want to pick up on one of the comments you made earlier about mental health. we have been talking about this. we saw 33,000 people killed by gun crime of some sort on an annual basis. two thirds of those were suicides. i believe that when donald trump came into power, he started signing legislation to repeal the obama rulings that were access to guns from those with mental health. is that right? and is the truth that as far as controlling gun crime, legislation is going the wrong way rather than being tougher? or at least it's retracting? kevin: president trump has rescinded some of the action taken by barack obama on gun control. that's a point that tom perez raised to me yesterday when i interviewed him.

but i think that what you just saw from president trump in las is something that this administration is trying to , as far asth communication strategies, that is for the president to take a much more somber tone, a much more unifying tone. you pointed out one of the powerful quotes from that. and here we have not seen the president way in significantly on the debate brewing, here where i am in the halls of congress. but whether or not the president ultimately does weigh in on that, you should know the top democrat in the house of representatives, nancy pelosi, has called on house speaker paul ryan to create a special select committee on gun violence in the united states. for now, president trump spending the day in las vegas, meeting victims and their families, not weighing in on the political issues that are still

very much here in washington, but trying to offer support to the victims of the families and first responders. you mentioned the ongoing uncertainty of what's going to happen in the gun debate in the wake of this attack. there is also uncertainty about what happened in the attack itself. the motivation of the shooter, all kinds of questions, so many mysteries still out there. in bc, from your active, is eagernessr tight and to go over what went down? kevin: joe, that's a good question. covering washington for years now, anytime there is horrific mass shooting tragedy, as a reporter i covered the request to address gun control and they have really decreased.

the day of the shooting when it was climbing, the calls to address gun reform were already coming in. that is a sped up process that has definitely been something i've noticed over the past several years. but in terms of looking for answers, yes, there is definitely an appetite for answers in terms of what happened with this ongoing investigation. particularly emotive. i think that you have seen this coming from the white house as well. we just heard this from president trump, in which he praised the first responders, police, sheriff joe lombardo as well. i think that, hopefully, will ultimately yield some answers and i think that everyone at the white house, democrat and know, what wants to happened? how is someone able to get that many lessons and plan such an attack? the investigation is very much ongoing and we have to be careful not to jump to

conclusions. >> well said. that was kevin cirilli, joining us from capitol hill. the head of verizon communications will be leaving her position at the end of the year. she was leaving their connective car pneumatics division. she was in charge of negotiating the $350 million price cut for their purchase of assets after the data breach. she is said to be leaving the company according to a person familiar with the matter once it became apparent that she was not going to become the next ceo of verizon. we will keep you posted on further developments in the story. >> coming up, prime minister theresa may's policy speech, drowned out by a comedy of errors. how her address went slightly off the rails, next. this is bloomberg. ♪

markets are taking their cues from washington today, with investors making their bets on bonds tumbling amid the president's speculation that he might erase all the debt. here to make sense of what's going on in the markets is david ilin. rotation butesting we seem to have day after day in which the headline indices are bringing very little volatility in one direction or another. what is going to sort of rows the market out of this slumber and give it direction one way or another? david: we have a bit of schizophrenia and that's between the experience of watching the news and all the incredible

stories that come out, some of them tragic and difficult, some of them politically outrageous, all of that going on that is incredibly important, but on the outcome the data on the other hand. data is remarkable and interesting for a couple of reasons. one, we have reason lately -- reasonably solid growth that is 2000 18. go into we are anticipating that the eps for the u.s. market could be up 67% last -- next year. which is a lot. thatimportantly, the fact the foreign markets are accelerating and growth, everything from china to southeast asia and brazil, which is coming up on a very difficult five years. globalnchronous economic growth is creating a backdrop that is positive and solid. so there is that schizophrenia between what we feel and how we experience it. scarlet: there's a lot of

anxiety and the surface, but underneath that growth it's providing a firm underpinning. i get that. you are also talking about the tax cuts and how people are perhaps underestimating the fact that it could happen. david: i think that the proposal itself was reasonably vague, less vague than the others, but it is reasonably focused on the heart of the matter, which has to do with the corporate tax rate and repatriation of capital to the united states, which would be beneficial to the u.s. competitive advantage. justhat to what i discussed, you would have a faster u.s. growth rate and greater global growth. it's quite a powerful combination and not one that should be discounted. joe: how much of a discount? if we woke up tomorrow and said past,y got it done, it's looking like the outline, how much could it be worth to the market? david: it could be worth a lot. it provides a strong underpinning for the next three

years. the concerns we might have would be whether inflation is something to get as concerned about as low bond rates. that aside, it would be considerable and important. saying toe clients you? when you tell them how to invest their money, what are they saying? david: we have seen couples cash balances -- people's cash balances beginning to decline in the markets. they arengly enough, investing outside latin america, even though their view of latin america is very positive and the same thing is true on the outside. globalization of their portfolio is what's happening. asia,e exception is in where the asian market itself is really interested in how well it's doing. people are surprised by the relative strength of the chinese market, for example, where capital balances have

been growing, not shrinking. after the party congress taking place october, we may see even more increased confidence there. that's the one where everyone is investing, but there is this factor going on elsewhere, everyone is looking elsewhere in thinking that their market is be. strong than it might >> you said you are also developing and developed markets as well. japan? they are the least attractive of all of them, but we are seeing real earnings growth and it has to do with japanese exports driving earnings. want to bring this back around the first part about inflation. i would think a lot of people would have thought that we would inflation this year given the strong global growth, particularly since global factors have been cited as a long -- for a long time is the one thing dragging down rates.

people not thinking about inflation. why have we got this strong global growth without more upward pressure? david: if you take a look at employment data and what's happening in the u.s. is happening in a micro way elsewhere, there's more full employment with little wage inflation. the types of jobs being created are typically low-wage without high. a lot of it has to do with the utilization of technology. people are thinking driverless cars, driverless cars, all well and good, but the fact is we have a client today whose factory manufactures tissue and paper products and is using 1/10 the number of people they did just five years ago. those investments i think are driving this factor to keep wage inflation low. you have to look at commodity prices and the fact, again looking at china, that they are closing down capacity in certain industries and as they do that there will eventually be shortages of some goods and commodities.

david, good to talk with you, thank you so much. that's the sweet spot, thank you. you missed prime minister theresa may making time -- policy news in her annual conference speech today, announcing affordable housing measures. it all went unnoticed, her speech telling voters about the british dream became more like a nightmare. set comedy of errors is prime and mr. theresa may as she gave her big speech on the final day of the conference in manchester to the north of england. a heckler jumped onto the stage to hand her a piece of paper. he turned out to be a prankster. it was a mockup of the form that you get when you lose your job. he handed it to her and said that it was from boris johnson. defended -- descended into coughing fit after coughing fit as she battled a sore throat and

he said it was finally the chancellor giving away something for free. if that were not enough, the signage behind her gradually began to lose its lettering as she spoke. twitter was a bit more divided as to whether it would serve her better to plow on, to persevere, or to give up. headline writers will no doubt have a metaphorical field day. there was news on the policy front, news of the capping of energy prices and stock in energy companies fell on the news in london. the envy of all the states is the take on the labour party, who has been ascendant in the polls lately under jeremy corbyn as they try to re-pitch the benefits of a free market economy to the british people. whether that message will be heard through the errors, we will have to see. anna edwards, bloomberg, manchester, england. scarlet: this was, of course, really a top ller for what has

not been a good year for theresa may. it just makes you cringe. here's how the interruption played out. prime minister theresa may, speaking. joe: for americans, that's the equivalent of a pink slip? that's a comedian that handed that to her. she never got back on course after that. this applause, there was heckling, and then she was back on course but there was a coughing fit. a letter fell off behind her, it was just a comedy of errors. >> like something out of "fawlty towers." scarlet: she did see the humor in it, she tweeted, if you pull of the street from her official account it says cough and it is a picture of all the various medication she was taking that day because she was suffering a bad cold. said whently what he

he hindered her that slip was -- with love, from boris. joe: the important thing is that people were saying before that that she was having one of her best speeches ever. quite she's clearly doing poorly. scarlet: she was getting ready to attack jeremy corbyn when he began speaking. >> everyone gets sick. scarlet: but one female politicians get sick, -- when female politicians get sick, the criticism as much harsher. think hillary clinton. this is bloomberg. ♪

"what'd you miss?"

vladimir putin spoke about his country in the opec extension of production cuts through a panel discussion moderated by our senior panel editor, john fraher. in slightlyed it different words. i said it creates an opportunity to invest into the global energy thestry because we see recovery of investment prices and let me remind us that in 2016, when towards the end of the year we were trying to reach an agreement about this joint action, there was a surplus in the market of production being greater than consumption. the reserves as it were, were near a critical margin. it all led to a germanic reduction of prices for energy resources and oil in the first lace.

we were able to agree upon our joined action plan and were able to reduce it in russia. all of the countries are standing true to these commitments, almost 103% in the beginning. russia, it could be to reduce 300,000 barrels per day. that's exactly what we did. are completely clients with these times of commitment. as you correctly noted, later on we agreed about extending for another nine months until march of 2018. what we see currently happening, i think everybody is interested, not only the oil producers, but also the consumers. why? because when the price for oil fell below the lower threshold, if i may say so, investments

stopped flowing into the industry. and that meant that sooner or later there will come a day when the global energy and the global economy will invariably be confronted by a very dramatic and unexpected shortening of energy resources and the president would have bounced that skyhigh. everybody is in the market saying table. so, what we were able to do together with opec, i believe, is to the benefit of the whole global economy. whether we will extend the agreement or not will depend on the way it evolves through the global markets. principally am not ruling this out but we will act upon the realities of march of 2018. >> sounds like you would be in favor. >> i think that this is possible.

you know? you know this quite well. it is very important to atertain caution in such public forum with a public statement because many countries who didn't join us, they are partial to responding to what we do today in reducing production. for example, the libyan leadership, to the extent that i heard, publicly stated that they are considering the possibility of having libya -- libyan producers join our efforts. in a twist, the part is it is being controlled by the powers that have made such a statement. and everyone is aware of this and understands the need for such joint efforts. i think again, we will have to look again at the way the global

energy makes it look and march of 2018. we maintain contacts with opec, with main producer nations, and so i hope for that we will have the order in the pleasure to receive the kingdom of saudi arabia very soon in russia. we are maintaining this constant dialogue. based upon the realities, in march of 2018, we all rule out same, but i don't rule out that we may extend these agreements. >> optimism there perhaps for the oil holds. -- bulls. fromup next, mixed signals the white house on the future of puerto rico's debt that send bond prices tumbling. we will discuss, from new york. this is bloomberg. ♪ is this a phone?

or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.

♪ scarlet: all right, let's get you a quick market check here. u.s. stocks closing at record highs. julie hyman reminds us over and over about what a tight trading range this has been, but nonetheless, any gain today would have been a record high. the dow, 20 points. the s&p and nasdaq, finishing marginally higher by almost three points. let's go now to mark crumpton with our first word news. president trump is telling the people of las vegas that the nation stairs -- stands with them to help bear the pain of the worst mass shooting in u.s. history.

speaking at the city's metropolitan police headquarters , he said america is mourning the tragic loss of so many innocent lives. -- lives. came after speaking with the mexican president, who expressed condolences on behalf of the mexican people. he also spoke with the prime minister of japan, shinzo abe. puerto ricans and allies gathered at the [no audio] market, we are jumping in, we have some technical issues. marks microphone is not working properly, so we will get back to him with more first word issues, but in the meantime, puerto rico >> bonds sent scrambling after president trump told fox news that creditors would not get their money back. " e: "what'd you miss?

humes, to bring in hans an expert in distressed that seeing many of these kinds of things playing out around the world in many localities. before we get to the specifics of puerto rico, an issue, a statement like trump's last night, saying you know what, we have to get rid of all the debt 80, how helpful or unhelpful is that to solving the problem? hans: in one way is really helpful in terms of knocking down the prices to do a deal. we mainly deal in emerging market countries and that's constantly a risk, a political makes somes out and statement. we went to this in argentina and got a couple of shots of it in greece. maybe it's refreshing to have it happen in the united states? an unscripted remark by a leader to drive prices down.

but the important thing in this is that it's not his call. it's the puerto rican courts. you've got a control board overseeing the site -- finances. having a random political statement knock the market out of whack, that happens all the time. what will be the result of this? gets wiped out, but it certainly creates room for negotiation. good pointat's a not you bring up, it's really the president's call, but then why did the market respond the way that it did? it's an interesting market, you can't short these bonds, there is in that short buffer to create a bid if there is a drop in prices. i think you have had a lot of longs with prices that have been eroding for the past few weeks, especially since the hurricane. the fiscal situation of puerto

rico was bad before the hurricane and has been getting worse for years now. arguably, the prices were too high. scarlet: so, it's like a catalyst. >> a warning that you could be sitting on a bomb about to go to zero if you don't write down the debt according to the u.s. president. hypothetically it could go to zero if the control board says that that sustainability comes up and says there is no potential recovery, that they can't serve anything. but it would be incredibly unlikely and disruptive for the bond markets. you have local bondholders at risk here. possibility, it's not in any way a probability. >> as you alluded to, we have been in this standoff situation where the bondholders are not even willing to take a haircut. the puerto ricans have been on the other side going -- hey,

we've got the electricity board as well, the source of bankruptcy, a number of different elements here. the region sustained $95 billion in damage of her into their estimates, on top of $75 billion in debt that the island already faces, puerto rico. adding those two things together, someone who needs a reality check, this is not a place they will be able to repay its debt. has anyone been talking around the scenes about getting around a table and getting real? hans: it's an interesting group of creditors. you have some people with muni experience in the hedge funds. and then you have a couple of global macro guys. there have been a couple of constructive voices. distressed that guys coming in, like you, going -- we've done this before, this is the greatest situation, we know how it's going to work. it's fair to say that

having different creditor groups litigating against each other is not constructive to a bilateral discussion. these statements will likely promote a dialogue with some kind of outcome that's better. you point out, it doesn't help the situation when you have different creditor groups who have different flights of fighting. a game theory standpoint, how do you get disparate groups of disparate interests coordinated? that's a good question. when you look at the headline names in the debt silos, it looks like it would be difficult to coordinate. but if you look at the creditors we had to deal with in greece, or even a country like the there's always a better

way to do it and one of them is having that discussion first. understand that if you have a slice of high up, figure out who .s subordinate into his senior to give you some guidance. figure out how you approach the borrower with a unified front. >> you say that should have happened from the beginning, but is in that happening today? see: you have to wait and what happens with the final bill for the hurricane. scarlet: is part of the problem that the creditors see this as a zero sum game? or are they in the mindset to work together here to figure out a common solution? had a dialogue with a couple of them. i think that's the mindset that i've gotten from them. scarlet: give me my money back. hans: and it is point, there's money to give back.

>> we haven't even talked about the humanitarian tragedy. absolutely. when trump makes a comment like that, i suspect a lot of people peoplem, especially for who don't pay attention to municipal finance, think that sounds reasonable, starting over from scratch. if that were to happen it might "either end of the municipal bond market as we know it." for the broader audience just -- tuningto the story into the story for the first time, what does that mean? why would something like that so theoretically shake the scaffolding of the entire market? hans: interesting comment. i would say that most of the government people overseeing or three years ago their primary concern was the functioning of the muni bond market.

allk about it, they were funding themselves to that market and to disrupt it would be damaging to everybody. so, maybe at best, a third of it has had some pretty dramatic impact on muni bonds on performance. in terms of what's precedented, puerto rico is in a weird situation. it's not clean muni, but it's not sovereign either. including a complete run-up of what's v.impact on could be potentially catastrophic. see the unitede states as a possible backdrop

that will allow them to regain in the future.- hans: back to the cold war, puerto rico is an example of how this will work. in effect the u.s. was guaranteeing puerto rico. things changed, but in the interim puerto rico borrowed a lot. probably too much for the size of its economy. what you need is an extendable debt profile. let's see what the economy looks like. you have a population coming here that is aging. what is the economy going to look like posted this financial crisis. even have to't

answer that question about regaining market access. that wraps it up. thank you so much for your insight, hans. up, a look atg why emerging markets might be the best-performing asset. from new york, this is bloomberg. ♪

scarlet: "what'd you miss?" the emerging markets stock index is flexing its strongest fear signals since the trump election last november. take a look at the fear greed indicator, which takes a look at the ratio of buying strength to selling strength. this follows a time where it was fought -- flashing green.

our next guest believes that emerging markets have the best emerging be the best assets. for now, let's bring in chen's ao. -- chen zh the time toaking join us today. a lot of the optimism surrounding emerging markets has to do with the fact we have this mobile synchronized growth, yet the developing market has gotten ahead of itself and has seen a rally for a while while the emerging markets are playing catch-up. where are we in this cycle? very early, if you look at the history. the run-up to the performance is all about five to seven year cycles. in other words, seven years of a sad performance for emerging markets is often followed by seven years a very bad performance. just finished seven years of a long cycle of underperformance

and i think that everything right now is falling into place of performance. value is really good, everyone is concerned about stock markets in the united states becoming expensive, richly priced, whereas you look at emerging markets we are talking about lots of discounts. price-to-book value today, price-earnings ratio today is about 30% discount. the market, the capital will naturally flow to of lace where risk return, risk reward profile looks good, i think. markets are definitely better. that's the first point. the second point, looking at it from a business cycle point of view, this is the first time that the emerging market is strength iny broad and across the whole universe. there's not even a single is feelingay that

contraction, which is a huge improvement compared to even six months ago. from the cycle point of view, we are entering into a very expansionary phase that i think we'll add some strength to the emerging market stocks. the third thing that i think is very important, if you look at the emerging market currencies, emerging market currencies have dropped dramatically since 2016. these currencies right now are helping a lot of countries to externalheir imbalances. laying the foundation for the next wave of expansion. if you look at the u.s. dollar, it is very expensive. if you look at all of these factors and put them together, i think you can make a case, at least on the relative basis, that the emerging market will continue to outperform the s&p 500.

joe: talking about the tenor of emerging market economies, you pointed out that they are basically all growing at the same time. has something fundamental change in terms of structural reforms, domestically, that puts them on a sounder footing than in prior booms? chen: i think the situation today is slightly different. if you think about the previous emerging-market rooms, they build on two major factors. number one, we have had a sustained decline in the u.s. dollar that actually inflated commodity prices and helped a lot of those countries. that's the first factor. the second is the booming chinese economy that drives up commodities. so, the last was built on those two factors. andp -- a falling dollar rising chinese demand. today if you look around the world the reason could be somewhat different.

i think the next upswing is basically based on a couple of things area number one, the valuation. that the emerging market was trashed, nobody liked them. they were under owned. this is the first reason they had to look at that asset class. that's the first reason. the second reason is i think the bottom topped out. everyone was a list on the dollar at the beginning of the year and it turned out that the dollar actually corrected. i think that this is more than a simple correction. i think the dollar has more downside than a lot of people basically to believe it's laying down another foundation for better conditions for commodities and better conditions for lots of those countries. economy, telling people, a lot of misconceptions

about china. people are always blaming or concerned about chinese debt. don't forget about a single simple fact. debt occurs because you have to convert savings into investment. for a country like china, where the savings rate is 50%, you have to rely on a huge amount of debt creation in order to funnel the savings into an investment. if you look at across the country and around the world, the countries with the highest debt, gdp ratio, that's singapore. the problem with singapore? no problem except they've had a of very high savings rates. their banking sector is the main intermediary to transform saving into investment. same thing is true for china. if you only look at the that to gdp ratio, it doesn't carry

anything at all. exactly the same thing, that's incredible. we have to wrap it up. it was brilliant to get your insight. thank you so much. chen: thank you. [indiscernible] [laughter] scarlet: coming up next, we will hear from mark cuban on politics and the recent nfl kneeling controversy. this is bloomberg. ♪

♪ "> "what'd you miss? emily chang sat down with the outspoken owner of the dallas mavericks, mark cuban.

hot discussed several topics, including the uproar over the protest in the nfl. mark: the nba in the nfl are completely different. take a football team, you might recognize three players. their only chance to make a statement about what is important to them is when the cameras are rolling. basketball, lebron james calls him a bomb and he's got a bigger platform. it's completely different. what i said to our team is that if you have a message to convey to the fans, just say it. we will show was on your minds. protest on the nfl side, you lose control of the narrative. emily: you don't think that they should have protested in that way? mark: not saying that at all. for the nfl, it was the only way to do it. the nba's completely different. we have a much stronger platform and a better way to communicate. emily: is this a battle that president trump should be picking? mark: no.

[laughter] but it's not about sports and politics. sports people, athletes, owners, whatever, give money, etc., but come on, that's who he is? to me there is three donald trump's the one that's trying to be the president, the one that's a salesperson, and the donald trump that is a twitter troll. twitter, yous on can ignore him -- you can engage him and hit back. on things thatim he has no idea because that's what patriotic americans do and you just let him pretend to be president or do his thing and hopefully the best happens. emily: you have major political views very clear. what are your biggest concerns about this administration mark:? that he just -- administration? mark: that he just doesn't know

what's going on. that he doesn't make an effort to learn. capable,se is not perhaps is not willing -- maybe he just doesn't have it in him. emily: does he make it through four years? 25% chance hesay doesn't. i would be willing to bet against it. not because he's going to do something crazily wrong, though it seems like it, but because he's oblivious to the institutions of government and the laws in the rules. he will do something and won't recognize that it is an impeachable offense. >> that was the dallas mavericks at the "vanityn fair" unity management summit in los angeles. scarlet: hard to keep track of all of those. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

♪ scarlet: "what'd you miss?" in equities? not a whole lot. the indexes barely moved, but even the marginal gains meant highs in the nasdaq. jobless numbers come out tomorrow number -- tomorrow. what do you call it?

economicsuper bowl of data. looking forward to that. then i will be looking at constellation brands. coming out before the bell. miss the spanish economy minister joining us tomorrow at 4 a.m. eastern for tension between catalonia and spain, heating up. scarlet: that does it for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪

alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." president trump told people in las vegas today the nation stands firmly behind them.

he praised first responders for their courage as the deadliest mass shooting in u.s. history unfolded. trump and first lady melania met with victims and responders to the attack. president trump says he has total confidence in secretary of state rex tillerson. he called him -- up,alled those reports made and tillerson denied he ever considered quitting. the senate intelligence committee is investigating russian interference in the u.s. election and has not reached a conclusion. that is according to the committee chair and the vice chair. they also warn tougher measures are needed -- tougher measures needed to be taken ahead of the election. white house budget director mick mulvaney says there will not be a federal bailout puerto rico, even after president trump mentioned wiping out that red ink as part of hurricane recovery.