especially minority owned ones. he commented on the ongoing talks over nafta, saying renegotiating free trade reels -- deals is critical for american business. president trump: we started with nafta. we will see how that turns out or does not turn out. we will get a new deal. we will see how it turns out. mark: the president also said his economic policy of cutting regulations and taxes are roosting markets to record highs. there is word of another plan to fix obamacare in the short-term. the proposal comes from senator orrin hatch and congressman kevin brady, the top republican tax writers. the deal will restore insurance company subsidies for two years and include what are being called concrete reforms. one of those is an and to the individual insurance mandate for 2021. nato has vetoed a u.n.

resolution for inspectors at the chemical attack in syria. moscow had to postpone the event until next month after the weapons watchdog issued its october 26 report. u.s. ambassador nikki haley pushed for the vote today, saying the security council overwhelmingly supported extending the inspectors' mandat es month after hurricane maria struck puerto rico, the tourism industry is practically nonexistent. about a third of the hotels on the island remained shuttered. restaurants and shops are still without power. swimmingre closed for because of possible water contamination. in high season begins december, and tourism officials are hoping to lower some visitors. ist depends on when power fully restored, and how quickly attractions can repair the damage. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

julia: i am julia chatterley. joe: i am joe weisenthal. scarlet fu is off today. julia: we are 70 minutes from the close of trading, and stocks are on a record run. joe: what have you missed? trump president encouraged her public and senators to push ahead with tax cut plans. this just hours after feuding publicly with fellow gop member senator bob corker. but more chatter around the next federal reserve chair nomination. to win aor appeared senate gop straw poll in today's meeting. wondering if is value investing, the strategy he

is famous for following, remains viable. miss?id you earlier, president trump met with senate republicans on text form efforts. senator mitch mcconnell spoke to reporters afterwards. senator mcconnell: we are here to try to a countless things for the american people. we are all on the same page on the issues i have mentioned. run and center is copper for hands of tax reform. my colleagues have described it. trying to get the country going again and growing again. heels this comes on the of a nasty back and forth between the president and republican senator corker, resulting in trump calling the senator in competent and bob corker accusing trump of debasing our nation. the fedso hearing about chair race, with john taylor appearing to win a senate gop straw poll. joining us to discuss is bloomberg's washington bureau chief, mr. gordon. stop all that.

we have to talk about senator jeff flake's decision not to seek reelection. he has been a firebrand critic of president trump. what does it mean if he has nothing to lose, if we stacking up against the likes of john mccain, bob corker, in terms of getting policy done going forward? >> look, jeff flake has been a well-known sort of trump critic. he wrote a whole book sort of cataloging some of his concerns about the direction of the country, as we have seen with bob corker who recently announced he is not planning to run for reelection in tennessee. this may free up jeff flake to be even more critical than he has been of donald trump. he was on the senate floor moments ago, talking about how you cannot call fake news true and true news fake, and saying he is very concerned about the direction of the country. if that is a taste of what he has in store for president trump, they could be cap words coming from the arizona senator. jeff flake is not a fan of president trump, but it seems

he is savaging his fellow republican senators, most of whom have been pretty disciplined about staying in line despite all kinds of reports of tension. is it possible that we will see more senators who are planning on staying in the senate? craig: it is hard to know. we did not see the jeff flake announcement coming. that came as a bolt out of the blue. he told "the arizona republic" the news. corker might be getting fed up with washington. you never know who could be next. other people have been critical of the president -- then sets of nebraska and a few others. i cannot predict any future resignations. powerfulalty is a thing in washington. obviously, they are all republicans. they have generally held together, despite disagreements with president trump. you have very powerful voices coming out against the president. john mccain, no fan of the president either. there is a bit of a groundswell growing here. that is why i think you saw mitch mcconnell saying, we need

to stick to tax reform. not here to talk about bob corker or any of these things. i think that is a winning hand for republicans if they could only get the president to focus on it. underlyingthose issues remain here. do you think this is a problem or that people go, we recognize that not passing policy here could have a detrimental impact on the midterms, irrespective of what the president is doing here , and we have to stick together -- which you have alluded to? craig: this is going to be the real test for the republican party and to some extent trump. the tweets he made today against bob corker -- we are all a little numb to it now. if you read those, they are remarkable. you are talking about a sitting senator of his own party, the senate foreign relations chairman, a respected and well liked senator, and he basically dismantled him brick by brick. corker gave as good as he got. discourse, i of believe the american people are not in the mood for this. a feel like there are a lot of

problems in the country, whether it is health care, taxes, the economy. if this is not the way the republican party should want to go. i think one reason hillary clinton lost in 2016 is, people were tired of the backbiting and the sniping. not even a full year later, they are getting a heavy dose of that from the republican party. i cannot see how this helps their chances in the midterms. julia: it is like squabbling children. joe: we see it all the time and we are becoming numb to it. but if you blanket all out and read the stuff, it is pretty extraordinary. a good perspective on that. let's talk policy a little bit. texas, where do we stand in terms of the momentum that this thing has, and whether it looks like they will be able to hold together the narrow majorities that they have to get something passed? nothing unites the republican party more than cutting taxes. they have that in their favor

now, even more so than obamacare. theutting is really orthodoxy of the republican party. you would imagine, if they could pull together on one issue, it would be tax reform. easy to say. hard to do. we expect to see the actual final details of the deal on november 1. ,he house conservative caucus the freedom caucus, is pushing for a vote in november. that would be rocket speed to try to get something done as complicated as reforming the tax code. but right now i think a lot of republicans have questions about the president's position. he went to the senate to try to clear it up. is he willing to change the state and local deduction? whether be the tax bracket for the wealthy at 39 and change? for a bill that is supposed to be written in a week, that is a lot of questions. a lot of fights still to come. i think the deadline of the end of the year is ambitious and unlikely. julia: let the people are questioning where the president stands on the effort to shore up the insurance market with obamacare.

i want to talk to you about the fed and the future leadership, talking about where people are going numb on this one as well. a straw poll of gop senators today -- apparently, mr. taylor is the winner. how much value should investors put on trump's views of what gop senators think of the next fed chair? craig: to me, it is a pretty odd way to pick your fed chair, to throw it out to the senate and take a boat. one thing we do know that this vote confirms is that john taylor is a popular choice among conservatives in the republican party. we know that tends is a tailor person. tailor pence is a person. cap is a pretty contrary time -- trump is a pretty contrary guy, so read that for what it is worth. we are told by the senator from south carolina that trump only put three names into the --versation -- taylor, power

power, and yellen. talk about gary cohn and kevin war seems to be fading. it does seem like a two-person race mostly. yellen still kind of hanging on here. morenk we have a few twists and turns of this story to come. it could come this week or next week. he gets on the plane for asia. that is a hard deadline to get the names. we are down to see what the president decides. julia: cannot come quickly enough year. bloomberg's washington bureau chief, craig gordon. thank you for that. coming up, separating the man from the company. that is what it would take for tom barrack to come to the rescue in the aftermath of sexual assault allegations against harvey weinstein. more from that interview, a head. from new york, this is bloomberg.

joe: billionaire tom barrack may consider bailing out the weinstein company in the wake of sexual assault allegations against harvey weinstein, but there is a catch. barrick spoke to erik schatzker at the future investment seminar. do not know that we have come to the rescue, but the company itself -- if you recall, we purchased miramax from disney. recall, 2010. >> yes, which was a previous company the weinstein's were tied to. with 750 projects in the camp, it was a great acquisition from disney. we were familiar with the portfolio, the library, and the process. erik: why would you say you have

not bailed them out or rescued them yet? when we say rescue, there is a big difference between the weinstein's and the company. harvey, whatever the acquisition -- hissations are conduct was totally unacceptable, reprehensible, and unacceptable on any terms. no one is interested in salvaging a company which would benefit harvey. 115 individuals, a tv production company, an independent film company, a distribution company which has counterparts that are relying on stability. time, if thert weinstein element could be removed, if the toxicity and the liabilities around it could be and if the content of the company could continue on in a normal way -- whether that could happen or not is a

question. erik: when you stay the weinstein element, do you mean bob as well as harvey? >> bob of courses in a satellite position, fortunately or unfortunately. the benefit of his name is also the deficit of his name. but bob has been very capable in his own business, which is dimension. weinsteinscing the in whatever manner needs to be done without being punitive to bob, who at this point in time has no culpability, apparently, in the process -- nevertheless, the counterparts are going to want the weinsteins gone. how that does is an issue and a question. erik: can you tell at this point whether you are going to want to buy it or not? tom: no. erik: when will you know? tom: soon. erik: soon. any idea what it will cost? tom: we are under a

nondisclosure agreement. you have hundreds of creative people whose lives are in the offing. i would not venture to say. it, ifet's try to scale you will. miramax was a $660 million deal, a very big film library with some famous titles. is this as valuable and asset as that was? hard to say, because you have to take liabilities. you have liabilities on the balance. you could go against the previous library. you have attendant liabilities that arise from the act of harvey now. i just those liabilities are attributable to the company on an ongoing basis and which are not is a rubik skew. very difficult. very, very difficult. is, you haveective a patient that is dying on the table. you need to revive them and get them to breathe first. if you can do that, maybe they can walk, and perhaps you can

get them. it is a real issue. the: a recent story in washington post implied, if not stated, that you are losing faith in president trump on some issues. are you? not at all. not at all. quite the opposite. convey in trying to an article which i did not seek -- a very good report, but i did not seek it. the constituencies that criticize the president understandably have valid issues at times, because some of the issues appear to be unnecessary footfalls. some of the things you have pointed to, for example, our immigration, particularly as it concerns muslim countries like this one or others in the gulf. also the rhetoric the president has used. tom: the muslim ban is a great example. look where we are today.

look where you are today. look where every major financier in the world is today. after the president took a position which was very harsh in acts,etoric -- but in his he has open and unbelievable canal of tolerance that had not been seen before. that really was my issue. erik: it has been almost a year, as we both know, since the election. year withn almost a no major legislative compliment. since her, 10 months took office. why has the president so far failed to unite enough members in congress to get a bill passed, and what does he need to change to make that happen? tom: it is not just the president. it is 535 other people, with various constituencies. the process of government is torturous. and by the way, i am not so certain at the end of the day

that the democratic process in government that we have works so well for the population that we have. i think this president is a normal human being. nobody works harder. nobody is as instinct of a smart. nobody has better political instincts for where he is. but he has not been through this legislative grinder before. he is coalescing his alignment of power. i think if you look at the stock for hows being a proxy we all feel about life, it is pretty phenomenal. tom barrack, executive president of colony northstar, with erik schatzker. julia: it is time to look at some of the biggest business stories in the news now, continuing with the topic of saudi prince mohammad bin salman. the prince announcing saudi arabia intends to "eradicate extremism." newintroduced plans for a

city where women will be able to jog in public wearing gym clothes, and work alongside men. he is backed by over $500 billion from the saudi government. this is part of the prince's attempt not to repeat past mistakes. david einhorn is wondering if value investing remains viable. this according to a greenlight capital investor who expressed frustration that growth stocks have outperformed value. einhorn also questioned whether there is a "new paradigm" for valuing equities. that is your bloomberg business flash. time now for the stock of the hour. carving out a new record high today is gm. shares of the u.s. automaker are popping higher on a strong quarter. here to break it down is abigail doolittle. gm has been on a tear before today. today's earnings making investors even happier. what is going on? ,bigail: the stock is up 30%

the best in its young life since 2013. the earnings beat today was big. they beat top and bottom line estimates. it is also the composition of the beat that investors like. who knew suv's are back? the equinox crossover is very strong. profitable in all their segments for the first time since 2014. inventory under control. that really removes an overhang. the bigger story is the idea that this company is going to be moving into the electric vehicle space and the ridesharing space. that is really helping these shares expand. julia: not long ago you were talking to us about this path. analysts were saying the path to this share price. what kind of expansion are we talking about? abigail: pretty significant multiple expansion. shares are trading desk if we go

quickly into the bloomberg, we can look quickly at the valuation in the bloomberg. we see the shares are trading at . 7.9 times pe a big discount on ev to revenue. this is at the high-end for the historical range. shares of gm have not been in this area really ever. a relatively young life over the last five or six years. but the multiple expansion would be 15 times. what they are talking about -- that is really big. for carmakers overall, you see the group is trading at 7.2 times. business, thed core business, $146 billion in revenue. -- the possibility that electric vehicles will take off, autonomous writing, ridesharing. who knows? these shares may continue higher. no doubt we will continue to talk about this. coming up, strong earnings reports.

we have the charts you cannot miss, next.

joe: what did you miss? caterpillar shares surging after strong earnings. caterpillar is one of my favorite companies to watch because it is a great macro bellwether. here is a chart i have shown a couple of times. going back to 2006, caterpillar is the white line versus the blue line, which is the msci emerging markets index. look at the lines. it basically speaks for itself. basically track each other perfectly. caterpillar is in construction, mining, and industrial activity. as the global economy revs up and you have this synchronized growth move together, you can see the end of the chart. caterpillar looks like it is almost going parabolic. the emerging market index right behind it.

a pretty good sign for the whole world when caterpillar reports numbers this good. hopefully they can keep going. there is an emerging market element. when was the last time you went to mcdonald's? joe: this week, actually. julia: you are my perfect test case. earnings reports from mcdonald's. they have been doing very well, beating analyst estimates for a ninth straight quarterly increase, in terms of earnings. we have seen same-store sales rising 6% in the third quarter. one of the things that is helping them in terms of their outperformance is what is going on for in-store. looking at correlations with emerging markets and caterpillar -- what about the correlation between beef prices and mcdonald's share price? thewhite line will show you whole surprise, which has been falling the last three years.

the blue line shows you the share price. a tailwind here for mcdonald's. blue chipsese big having a great day. it is the theme of the day. julia: the market closes next. here is a quick peek. ♪

julia: u.s. stocks closing

higher this afternoon following strong corporate earnings early in the day. i am julia chatterley. joe: i am joe weisenthal. scarlet fu is off today. toe on twitter, we want welcome you to our closing bell coverage, every weekday from 4:00 to 5:00 p.m. eastern. begin with our market minutes. let's take a look at the performance of the stock market this afternoon. you can see the dow higher by 0.7%, 0.2% higher for the s&p 500, and the nasdaq. the industrials, if i drill down and take a look at that on the bloomberg -- you can see that is a real out performer today. it is the likes of caterpillar, gm, really boosting the dow. let's take an individual look at what is going on as far as individual performers. caterpillar trading at a record high.

caterpillar keeps raising the bar on sales and analyst expectations, and they keep beating them. they are doing strategic planning. the illinois-based company projecting 27 sales -- 2017 sales of $40 billion. this month, a third straight increase in the annual revenue projections. gm also is focused on reminding wall street that there are reasons to be excited about stock, despite the talk around the technology. the core automotive business in particular continues to outperform. profits topping estimates. sales of a new equinox crossover surged. around generating buzz the electric future of the firm, as you would expect after the announcements we have seen in this quarter. worldcom always in focus. in focus.hirlpool

sears is going to stop sales of whirlpool products after the company could not agree on pricing terms. the retailer will no longer carry whirlpool brands, including maytag, and kitchenaid. it is effective immediately, according to sears come in on employee memo last week that was provided to bloomberg today. the stock has gained. whirlpool down more than 10%. joe: let's take a quick look at the government bond market. rates higher across the board. 10 year yields up to 2.41. produce strong move higher. the highest level we are seeing in a while. we see this rally. we saw a pop in the yields when we got caterpillar numbers. people sort of interpolating some of these earnings stories into positive global macro news, sending yields higher. alsoar yields in germany moving higher. some concern or thinking that perhaps the pace of the ecb's

bond buying will be structured to less in any given month, causing some taper concerns in europe. seeing rates higher there. julia: a bit of an exciting day on a relative basis. we had the announcement of the decision not to go for reelection from senator jeff flake. poll ofhad the straw potential fed leadership candidates, things to donald trump, at the gop senator luncheon meeting. both sides of the trade in play. you can take your pick. right now, relatively unchanged, which says it all. let's look at what is going on in sterling. i do not even need to mention the b word. any headline as far as brexit is concerned still weighing on sterling. the dollar higher by 1% relative to the kiwi dollar. it is a defensive tone. we see reports that the new labor led government plans to

review and set policy mandates. the election still a bit of a concern for investors in kiwi. this is an interesting chart. i stole this for the currency section. bitcoin way less time than others to join the $100 billion club. what you are looking at is the number of years it has taken individual -- whether it is apple, whether it is bill gates, whether it is bitcoin or amazon -- to join the $100 billion valuation club. look at bitcoin. bubbleicious, anyone? joe: a fairly quiet day. crude oil up a percent. the $52 level, which we have not seen in a while, on west texas intermediate. gold basically doing nothing today, down just a hair.

those are today's market moves. julia: we have at&t third-quarter adjusted earnings, just breaking. estimates,'s meeting coming in at $.74. the estimate was $.74. at&t maintaining their year view in terms of net ads. we have 3 million here. i am waiting to see if we have an estimate for that. third-quarter revenues coming in at any $9.7 billion. the estimate jumped over $40 billion. it seems a touch softer on the revenue line. some other reading suggesting the consensus was $.75. we will watch the earnings. as you can see, pretty much in line when you are looking overall at these numbers. iny little change after-hours trade as far as at&t is concerned. but we want to hear from these guys more broadly. what damage did we see from the hurricanes in the earthquakes? what we are hearing from apple -- the sluggish iphone upgrade

cycle. those are going to be important topics to check the headlines to come out from at&t today. we will keep you abreast of those. u.s. stocks on a record run today after solid earnings reports. better-than-expected results from companies including caterpillar and 3m boosted the dow jones industrial average. that economic growth is accelerating. for more on the market, we are joined by cameron christ. markets.s about interesting day in terms of the choppiness of trade. cameron: in the afternoon, we had a bit of headline bingo with the jeff flake news and the comments from mcconnell that the senate might be a little short when it comes to passing the tax bill, in terms of three nay votes and then the flights news. the fact that the markets reaction contravenes the market hypotheses -- i think i had a

better chance of winning the nomination then mr. flake, and i have never set foot in arizona. joe: let's be honest. what does this say about markets that jeff flake retiring in a random straw poll of senators that probably means nothing constitutes market moving news. what does it say about the lack of volatility that this is what we are talking about? cameron: it says everything. i have been coming on this show for a little over a year. i go on the radio at lunchtime sometimes. i have been talking about the same darn thing for months. who is going to be the next fed chair? what is going to happen with brexit or catalonia? what is going to happen with the tax plan? there is not much new news. because of the hurricane -- we need a clear picture of that. in a sense, we are employed to talk about something. traders are employed to analyze incoming news. unfortunately, much of the news is fairly noisy. we are left with straw polls. speaking of the impact of

hurricanes, i want to bring you chipotle third-quarter earnings, because it looks like a big mess on the eps line. estimate, $1.53. comparative sales are higher by 1%. the estimate was 1.2%. weaker on the comparison sales. the full-year sales number, they are saying, is when to be 6.5% increase. the estimate was 7.2%. they were lowering the comparative sales forecast for the full year. we have got 2018 new store 1.30ngs coming in between and 1.50. we are down in after-hours trade just because of that headline. the eps missing by a huge margin. we will check whether that is right and whether we are comparing apples and oranges. perhaps we should use a more chipotle comparison.

whether we are comparing the numbers -- there were a number of elements and angles that we needed to look at. the hurricane impact in terms of demand for products in the likes of texas and florida -- the peso -- the queso. joe: we have not broken out queso numbers yet. julia: i normally look at the eps number to make sure the -- clearly, whatever it is, investors are concerned by the numbers that are coming through. do you have any news on chipotle? did they tell you anything? cameron: i am disappointed you did not say investors are getting indigestion. julia: you were talking about the reaction to some political headlines. one could ask what it says about the markets or what it says about politics at this moment. but go back to what you were saying about how investors are taking the news right now, the

valuation. basis, the a macro fed chair is the issue. it is interesting, actually. powell is powell -- seen as the technocrat. he is the status quo. whereas taylor, there is a relief, given the taylor rule, that he would mean tighter policy. but it is not necessarily the case. joe: i was gone to ask that. is there a lazy belief it is that simple for taylor? cameron: there is a bloomberg function on the terminal where you can go in and plot the variables when taylor used his original rule in 1993. it is not really applicable because it implies a neutral real interest rate. , youu use that function have to lop off 2% straight away. you can make a pretty good

argument that even using a taylor rule with the current estimate of the neutral, you get a raise of 1.75. julia: i will ask about mr. einhorn's comments about value investment, questioning a fundamental shift in the markets, or thinking of the markets. cameron: the pe of the s&p is high, which tells you people are paying a lot for stocks, which sort of makes sense in the context of low interest rates. a guy who won't pay much for thiss, you are left with stuff nobody wants. is it really surprising that value is suffering? i do not think so. speaking of valuations, you got into a great debate on the markets live blog about how we should be valuing the market overall. i thought it was an interesting discussion. buffett --sically,

there is market value relative to gdp. my colleague in singapore was trying to do the same sort of analysis based on global stocks. the problem is, we do not have a reliable historical estimate on the total market value of global stocks. was simply that if you are going to compare the price -- compare stocks with the level of gdp. you have to account for dividends. indexes withe two the same valuation, but if one pays dividends and the other does not, the price of the first one is going to be lower. using the price index kind of mrs. some of the picture. -- kind of misses some of the picture. joe: if you have a bloomberg, check it out. good stuff. julia: i want to recap some of the earnings we had just passed the bill. chipotle earnings crossing. disappointing. "indigestion" to use cameron's concerns.

a miss on the third quarter estimate. $.69. range ofl you that the estimates that were out there -- $.97 to 2.23. who knows where consensus estimates were? we saw revenue a touch weaker. 130, 150, as late as july -- they were saying 105 to 210 new store openings. a real calibration of the a sense ofsee for the store openings. comparable restaurant sales coming in. the estimate, 7.2%. disappointment, indigestion for investors on chipotle. a headline read. third quarter adjustment.

maintaining the year.

mark: i am mark crumpton. arizona republican senator jeff flake says he will not seek reelection. speaking on the senate floor, flake was highly critical of president trump and said we must stop pretending the conduct of some in our executive branch is normal. leader threatens real hurt and insecurity in our country and goes to look for someone to blame, there is perhaps nothing more restating to a pluralistic society. accused ther flake

president of undermining american democracy with his flagrant disregard of truth and decency. fleet continued again, quoting, there are times we must risk our careers. now is such a time. president trump and republican senator bob at it again, this time over texas. senator corker is calling on the president to stay out of the tax overhaul efforts. he expressed concern the white house is making the process harder. the president tweeted his response, saying corker is now fighting tax cuts. corker called that untrue and utterly untruthful from the president. france's president emmanuel bradford tomed leo paris. he has opposed the start to president trump's tax plan for reform, including overhauling taxes on large internet companies. >> we are also ready to discuss issues for which we agree, such

as how best to tax internet firms so they pay their fair share. we do not want europe to be able to take advantage of the new opportunities that the technological revolution presents. we want to see a dynamic, innovative, entrepreneurial climate, with fiber and european companies and startups and continental champions. says ireland is convince the best way to achieve a successful outcome is to support the work underway at the oecd. the organization for economic cooperation has developed and is working on guidelines, and how best it affects digital multinationals. a federal watchdog says climate change is already costing american taxpayers billions each year. the government accountability office of -- says those costs are expected to rise as storms, floods, wildfires, and droughts become more frequent in the coming decades. the federal government has spent more than $350 over the last decade on disaster assistance floodms and losses from

and crop insurance. the tally does not include the toll from this year's wildfires and three major hurricanes. day, news 24 hours a powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. julia: with the release of the iphone x just around the corner, initial shipments of the iphone x are expected to total around 20 million units this year. it is a big cut from the original forecast. apple struggles with technical issues with components supporting the new face authentication feature. marc berman joins us now from san francisco. the problem is here? if they are having supply issues, why are they making it available for preorder in 55 different countries as of friday? mean, i think they have a strong mix of the

even the eight and eight plus, low-end models that are still strong sellers. x -- for most people, it is a significant amount of money. is several car payments or a rent payment. a lot of people who are going to buy the iphone x -- the cuts are from thecant reduction reports from analysts. these are forecasts. we will have to see what apple has to say, if these are actual cuts or there is wrong information in the supply chain. ifia: there is a fear that they do not lock consumers in at this stage, they could lose them to a samsung in the interim. i do not think there will be a situation where people are not able to buy an iphone so they will buy a samsung. the people who are going to be

lining up in the first months of adopters, thearly apple fans. if they are not able to buy an iphone x, they will wait. joe: apple shares are not really too concerned. still pretty close to their all-time highs. look into the crucial fourth quarter. is there anything you see so far in the reporting, in the news, in the various supply chain trade press, that should be giving investors anxiety? or is this a fairly typical for this cycle? you get these stories and it kind of works out. what we are going to see. we are going to see that because of the delay between the release of the eight plus, the eight, and the iphone x -- the usual weeks of iphone sales at the tail end of the fourth quarter -- we are not going to see that like we have seen in past years, because of the different sets of models. what we are likely going to see

is a bigger, stronger iphone sales engine coming in the big holiday quarter. even into q2 and q3 of 2018. i think investors recognize that. even if we see higher sales because of the pent-up demand for the ie 10 -- iphone x, it will cover itself in the next year. julia: the demand is there, even if it is drawn out or delayed. is doingw what apple to mitigate the impact if they are having supplier issues? this company is having supplies in order without even having all of the factories. marc: apple's release this morning, as you have alluded to -- preorders beginning this friday. the most interesting part of the release to me is that there is going to be in-store availability. some apple history -- usually, when they have a super constrained product, they are

not able to sell them on the release date around the world. when the apple watch came out originally in april of 2015, that thing was severely constrained. it was constrained to the point where a preorder was only available in eight countries, and the release date was an online store exclusive. if you wanted an apple watch, you would have to order it online in the first couple of months. will havephone x in-store stock. you will be able to walk in and buy one. thise that to mean that thing is not going to be constrained to the point of previous products like the apple watch. good insight. mark berman, thank you for joining us. coming up, with another communist party congress winding down, it is clear president she remaining inon power for a long, long time. from new york, this is

bloomberg. ♪

julia: in china, the communist party national congress is wrapping up, and president xi's hold on power has never looked stronger. >> it is an arcane piece of chinese political theater. this assignment elevates him to the level of mao zedong. it says his influence extends potentially for decades to come. now our attention switches to wednesday, around 11:45. that is where we are expecting the politburo standing committee to be unveiled. likely, seven men will follow the president onto the stage and the red carpet.

that will show you how successful president she has been. that is both for the politburo and the standing committee. we will get a clear idea of who is going to be directing his policy agenda, both domestically and internationally. tom mackenzie, bloomberg, beijing. at a chart that gives you perspective on the economic challenges facing china. the white line is u.s. dollar-based gdp. the red line is china total debt. for a long time, they marched steadily together, most years up through 2013. adp was higher than that. in the last couple of years, we have seen total debt in the country well surpass gdp. we know there are demographic issues facing the country. mostly private-sector debt overhang for the years ahead. julia: up next, initial coin

offerings made a big start in 2017. ♪

mark: i am mark crumpton. it is time for first word news. the supreme court dismissed of the remaining trump travel ban case before the justice. the court took the action nullse the lawsuit was because the banner changed. the ban on refugees ended today. the u.s. temporarily halted admission from refugees from countries with some exceptions. they will unveil new, tougher screening procedures. president trump has a broader travel ban on people from several countries. they have blocked that policy repeatedly. a male protester was outside the

senate center, yelling, "trump is treason," throwing russian flags at president trump. president trump was walking alongside mitch mcconnell as the manner shouted. identified himself as ryan clayton, from americans take action, who wants trump to be impeached. minister ofinance germany announced a new era had begun. a member of merkel's conservative bloc said a new style will be important in the parliament. there will be repeat presidential elections to decide whether thing should proceed if a federal vote cannot begin t. the court will hear a case by three who want the vote

postponed until they can ensure free and fair elections. government crackdowns on opposition-led protests have left 60 people dead since the august election. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ julia: "what'd you miss?" let's get a recap of today's market action. higher across the board. 0.7%.w jones higher gm helping to lift the broader indices. caterpillar marking a third straight increase. raising its earnings forecast, profits topping estimates that general motors. headlines from twitter. adopting new policies regarding advertising transparency. other controversy about

facebook and the ads that were supposedly bought by russians during the presidential election. going to create a new transparency center that will dedicate a section of political ads, show how much is being spent, who is buying them. it is going further than any other organization. you can see the details, who is buying them, what was spent, who was targeted, what demographic they are going after. some of that has been controversial, as well. they would like to get ahead of the government, not being told how to do ads. perhaps setting standards for themselves. julia: for now. we will see what the other guys come up with before they testify on december 1. "what'd you miss?" a big third-quarter miss for chipotle, posting results a few minutes ago. eps at $.59, well below estimates of $1.63. hurricanes and a hacker attack

took plunge -- took a toll on profits. let's bring in an analyst. tell us what happened here. >> do not forget we have the july nora virus out -- norovirus outbreak. that had a big impact. they're saying the fourth quarter will drop 1%. part of it they are blaming on the hurricanes in florida. but that is below the 2% we were expecting. virus is having an impact. that is what we thought. joe: the market reaction suggests it is not about the hack that with the be a one time thing. but the core issues that have now been afflicting chipotle for several quarters are not going away. michael: exactly. those things happened already and happened to a lot of chains.

almost the cost of doing business and a lot of industries. hurricanes cost florida and houston. you are right, 100%. because of the norovirus outbreak, this recovery will take even longer and push back the timeline. restaurant margins to not improve as much as they could have. restaurants is a very tough market, one of the oldest businesses in the world. you have to steal share from someone else. and they are losing because people just do not trust the brand like they did. working?queso is not michael: it does not appear to be working. i have not had a chance to try it. joe: i tried it, so-so. michael: not super-appetizing. they were hoping that would

provide some marketing juice. they get the name and the headlines and if it went well it would bring customers in the door. they said this past went well. but we can joke about it, they were kind of banking on it as being a thing to change the trajectory of the business. michael: they were. another was desert. these are out of their core. it was about a simple menu. they are trying a lot of different things, throwing a lot of things at the wall, so far it has not worked. it will take time. julia: just to get more positive sentiment to allow people to forget the norovirus? michael: people forget. jack-in-the-box killed people, but people came back, eventually. in japan and mcdonald's they had a food safety outbreak. it took three years to get customers back. joe: you mentioned mcdonald's. thew years ago, they were

old style, they are done, nobody wants to eat there, millennial's ali that chipotle. but today's results show how that narrative have -- has flipped and is completely wrong. michael: maybe that is why it is not the end for chipotle. mcdonald's has borrowed from aaa in a lot of ways, adopting cage adoptinghipotle, cage-free a and sustainable resources. passing them is on the technology piece. they are making it cool to go to mcdonald's by ordering on the kiosk or apps. they are hitting all the right buttons. be swinging and missing. joe: they need to do breakfast tacos. julia: all-day breakfast tacos.

i have never been to chipotle. "what'd you miss?" bitcoin has stolen the show, digital currencies as a whole have had a breakout year. -- of ipo burst of offerings. palley,ing in stephen joins us from washington. great to have you on the show. start by explaining to us what an initial coin offering actually is. before i talk about that i think i have an answer for chipotle. they need a queso token. you would use something called an erc20 token. julia: what about an option on a token? stephen: i think a tote bag that could hold the queso. people of queso.

obviously chipotle is doing something wrong. i was talking when you asked -- your initial question was, what is an initial coin offering, and i feel? -- an ipo? think of it like magic beans. to raise money for a blockchain-based business. beans, or a magic tokens come up for sale on a website. you send a cryptocurrency, bitcoin or ethereum, and you receive a token exchange. 'se promoters of these ico received a cryptocurrency and use the money to invest in their business. the reason people do this, for the most part, is because cryptocurrency tokens have created for some folks incredible wealth. you have seen people who have purchased tokens for one dollar

and have sold them for $10 or $50. one of the reasons they have taken off, they allow people to make a significant amount of money very quickly, even if they missed out on buying bitcoin orether for $.20 or $.30. are that is so cynical, we building a new economic model and changing incentives and affects. according to you, maybe it is just a get rich quick scheme. what do we know about how the sec at this point sees these offerings? stephen: i am looking in my crystal ball and speculating about what the sec is thinking. i do not know what the sec is thinking. we do know they issued a report about something called the dao, which undertook token sales last year. as i read that, a well-crafted report, there perspective was, it might be a securities

offering or it might not be. make sureaws apply, you familiarize yourself with it. we have seen a lawsuit that was filed about a month ago, i believe in u.s. district court in new york, against somebody who promoted tokens but never issued them. it was a simple securities fraud lawsuit. what does the sec think? nobody knows that for sure. but they have made it clear existing laws apply. looks sell something that like a security and do not register it appropriately, the sec certainly can come after you. julia: what do you make of the fact china has banned this now? stephen: it is very interesting. one of the problems with token sales -- the interesting parts, and problems with international token sales, is precisely the fact they are international. this is something i wrote about about a year and a half ago. i read an article called

jurisdiction." you can sell these tokens, which may or may not be securities, anywhere in the world, instantly. which means you're subject to the law of 190 countries. in the u.s. you have states that have blue sky laws. you have hundreds of different regulators everywhere in the world that can have a say about whether your token sales is a security offering, whether it violates consumer protection laws. china'sor not regulations, whether or not its crackdown impacts market value of different kinds of cryptocurrencies, i do not know. it could, it could not, we have to see. something broader and more important about one of the benefits and flipside dangers or risks of the use of something you can sell everyone in the world cross -- across jurisdiction easily without

attending to legal consequences. joe: what did they used to say they are on the right side of the law? they say, we are not selling a security, this is a utility token. to use oursary network and therefore has use and is not a security. do you think that argument will fly with the sec? stephen: it depends. a token describe something that lots of software uses. you can think of it as a key or a ticket, almost like a ticket to a movie. what some folks have done, they call it utility tokens. the idea is by using this hallowed phrase, this magic language, that somehow you have complied with the law. where a a supreme court supreme court justice said, if it looks like a duck and >> like a duck, it is a quick. -- if it hasit a

the attributes of security, it does not matter what you call it. terms, it isle useful for analysis. i have seen, i will not name them, i have seen plenty of white papers, plenty of websites, with token offerings where the term utility token is used. but what is clearly offered for sale is an unregistered security. julia: great to get your insights? a quick word on mcdonald's? stephen: they definitely need a big mac token. in a, maybe mcdonald's in russia -- joe: burger king. stephen: they need a burger token. julia: thank you for joining us. coming up, saudi crown prince salman signaling a sea of social

change. how a new city will differ from life in the west of saudi arabia. from new york, this is bloomberg. ♪

julia: "what'd you miss?" lman hasown prince sa plans to build a new city on the red sea coast, with women able to jog in public wearing gym clothing, work alongside men come and play instruments in a music ensemble. over $500 billion from the saudi government as part of the prince's push not to repeat the country's past mistakes. , ourng us to discuss guest.

-- joining us to discuss, our guest. >> most global financials are beating attract to the desert giveseek to not only speeches in here important conferences about this, but there is just so much money at stake. the saudi's are talking about a $2 trillion fund. you have the world elite trying to get it back. extremely eye-catching about this new city. the firsts is not time we had a dramatic, megacity announcement from saudi arabia and this attempt at economic reform and changing the views of the country and perception outside of saudi arabia. why is this different and how will this fit? if you're talking about different treatment for women within these economic zonal cities -- >> that is the question, what is different this time? there are a lot of question marks a long list -- around

this. if you look at the ambitious plans the conference has laid out, it is not come to fruition yet. saudi aramco, there were question marks around that. they were assuring the world it will happen next year. but it has been tried and bailed in the past. on the plus side, he is the rising power in saudi arabia. you have to assume he will be around for a long time to come, despite news of rival factions within the palace. he has put his personal reputation on line -- on the line. he has a lot of money. julia: and a lot of time. joe: let's talk about this city, specifically. there is than half $1 trillion to build it. what is the point of it? what is the hope it accomplishes long-term economical?

it sounds sci-fi. john: it comes from the latin from new. it is also the arabic word for the future. neom. eventually you create another version of a dubai on the red sea. and you have these incredible plans to build a bridge across the red sea and africa. essentially, a lot of it is an attempt to re-create -- joe: this is an avid made for the city. it looks like a microsoft or ibm ad. it is like the future, you can just imagine. it tells you all you need to know. julia: this is quite fascinating. it will scale egypt, jordan, as well as saudi arabia, except plans do come off. the core of it will be the

size of manhattan. these things have been tried in the past. on the plus side, people would have said those things about dubai years ago. look at what a huge success story that was. global trade is changing. it will be interesting to see how much interest they get from especiallycially -- to the east. you mentioned there is still uncertainty with the aramco ipo. what is the latest on the? john: they said it is on track for 2018, but they were a little vague. the ceo was a little vague. he said the timing was on track. but the ultimate timing on when is up to theres shareholder, i.e., the saudi government. there was a huge projecting of confidence. they want to battle away the

doubters. coming up, a new normal, for valuing expertise. theironing whether strategy of value investing remains viable. from new york, this is bloomberg. ♪

julia: a look at some of the biggest business stories in the news right now. creating greater transparency with a center that will focus on political ads. how much a campaign spends on advertising, the identity of an organization, and the target demographic. the move addresses a major concern of congressional investigators to the suppose it meddling into the 2016 presidential election.

david einhorn is wondering if value investing remains viable. expressed frustration that growth stocks -- he also questions whether there are new paradigms valuing equities. lord in taylor's iconic store has been sold. they sold the fifth avenue building to the venture for $850 million. it will help customers offload debt. they will still occupy the bottom floor as a smaller version of the department store. that is your business flash update. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

julia: "what'd you miss?" u.s. equities ending the session in the green.

the dow outperforming g.m.. don't miss this. coca-cola reports their earnings tomorrow before the bell. joe: i will be looking for economic data, u.s. durable goods for the month of the september. julia: watching, president trump holding a fund-raising campaign for the -- for his campaign and 2020, coming up. bloomberg technology is next. joe: this is bloomberg. ♪

alisa: i am alisa parenti in washington and you are watching bloomberg technology. arizona republican senator jeff flake said he will not seek reelection. senate floorn the

he was highly critical of president trump and some within the executive branch. he accused president trump of undermining american democracy with his "flagrant disregard of truth and decency." the supreme court dismissed the remaining trumpet travel ban case before the justices. the president's four month worldwide ban on refugees also ended today. they will unveil new, tougher screening procedures in the coming days. congress has passed a $36.5 billion package for disaster aid for puerto rico and several states impacted by the hurricane season. nearly $577 million to address damaging wildfires in california. the nonpartisan government accountability office said the u.s. spent more than $350 billion over the last decade as a result of climate change. the