's wife was found dead in their home. neil shaw and killed four people and wounded 10 others at different locations before he was shot to death by police. states. secretary of called for an independent investigation into that country's military and prices which is seeing hundreds of thousands of muslims flee to bangladesh. >> the crisis is one of the world's greatest challenges. concerned by reports of atrocities. unrestrained by security forces. mark: the u.s. would consider individual sanctions against people found responsible for the

violence and he would not advise broad-based economic sanctions against the entire country. great britain cybersecurity team says russian hackers are targeting their telecommunication systems and energy networks after prime minister may said russia was weaponize and information and meddling in elections to undermined international order. global news powered by 2700 journalists and analysts in 120 countries. this is bloomberg. julia: lives in new york, i'm julia chesley. we are 30 minutes from the close of trading here in the netted states. stocks are in the red. the worst a since september.

>> the question is, what'd you miss? is said tot trump speak any moment. . another risk off day across the global equity screen. down for a fourth time in five years. and the conversation with the sheila bair who discusses the latest on tax reform and the departure of richard cordray. >> president trump set to make a statement from the white house at any moment. we will bring you those comments. let's listen in. president trump: i return from an historic trip to asia. this journey took us to five nations to meet with dozens of ineign leaders, participate

three formal state visits, and attend three key regional summits. it was the longest visit to the region by an american president and a quarter of a century. our foreigne went hosts greeted the american delegation, myself included with incredible warmth, hospitality and respect. this great respect showed very well our country is -- america's renewed confidence and standing in the world has never been stronger than it is now. when we are confident and ourselves, our strength, our nationsr values, other are confident and us. other companies will treat america with the respect our country ritually deserves. during our travels this is what

the world saw. a strong proud and confident america. today i want to update the american people on the tremendous success of this trip and the progress we have made to now -- advance american security and prosperity. our country was faced with a series of growing dangers. roguethreats included regimes pursuing deadly weapons, foreign powers challenging america's influence, the spread of the murderous terror group isis, and years of unfair trade practices that had dangerously depleted our manufacturing base and wiped out millions of middle-class jobs. the challenges were inherited, and these products showed what previous mistakes were made over many years and even decades by

other administrations. some of these mistakes were born of indifference and neglect. others from naïve thinking and misguided judgment. the negative influence of partisan politics and special interests was to blame. a one common thread behind these problems was a failure to protect and promote the interest of the american people and american workers. rebuild andwould defend its national security. i vow that we would reaffirm old -- inces and form new swore that in every decision with every action i would put the best interest of the american people first. over the past 10 months

traveling across the globe, meeting with world leaders, that is what i have done. earlier this year in saudi arabia i spoke to the leaders of more than 50 arab and muslim toions that our strategy defeat terrorists by stripping them of financing, territory and ideological support. i urge the leader should drive out the terrorists and extremists from their societies. one crushing isis defeat after another. in israel i reaffirm the unbreakable bond between america and the jewish state and met with leaders of the palestinian authority and initiated an effort to facilitate lasting peace between the israelis and palestinians. in brussels i urged our allies to do more to strengthen our crucial alliance and set the

stage for significant increases in member contributions. billions and billions of dollars are pouring in because of that initiative. nay del is very happy with donald trump and what i did. and warsaw i declare to the world america's resolve to preserve and protect western civilization and the values we hold so dear. we promote our shared interest of secure -- security and prosperity. york, i urge the nations confronting join in rogue regimes that threaten humanity and laid out a model for international cooperation grounded in respect for 3 -- sovereignty and the

responsibilities that come with it. to each of these places i have carried our vision for a vision for something stronger and sovereign, so important, and independent nations rooted in their histories, confident in their destinies, core operating to advance their security, prosperity and the noble cause of peace. this same vision i carried to asia two weeks ago and it was this commitment to you that was always at the forefront of my mind and thinking. -- defineds to find by three core goals. against the world nuclear menace posed by the north korean regime. and now, requires urgent action.

to strengthen america's alliances and economic partnerships in a free and open indo pacific made of thriving independent nations, respectful of other countries and their own citizens. say from foreign domination and economic servitude. third, to finally after many years insist on fair and reciprocal trade. fair and reciprocal trade. so important. these two words, fairness and reciprocity are an open invitation to every country that seeks to do business with the united states. they are a firm warning to every country that sheets and engages engagement like they have in the recent past.

almost any we have $800 billion a year trade deficit with other nations. we are going to start whittling that down, as fast as possible. honor to profound travel on this journey as your representative. i explained to world leaders how well the united states is doing. 3%nomic growth has been over and is going higher. unemployment is at its lowest level in 17 years. the stock market has gained trillions of dollars in value since my election and has reached record highs. we are massively increasing our military budget to historic levels. a defensehas passed

package and it could not come at a better time for our nation. is optimistic about the future. confident in our values. proud of our history. i want to thank every citizen you have played in making this great american come back possible. in asia, our message it was clear and well received. , toica is here to compete do business and defend our values and our security. we began our trip in hawaii. the united states pacific command, the guardian of our security and freedom across the indo pacific region.

as our country prepares to day, weveterans remember the incredible sacrifices encourage of all of is veterans whose service preserved our liberty and way of life that is a very special. we also thanked military families for their support for our brave servicemen and women, from hawaii, we traveled to japan, a crucial u.s. ally and partner. upon landing my first act was to thank the american servicemembers and japanese self-defense forces who personified the strength of our enduring alliance. prime minister abe and i agreed on our determination to remain united and achieve the goal of denuclearize north korea. our visit,lowing

japan announced sanctions on 35 north korean entities and individuals. shoulderingted to more of the burden of our common defense by reimbursing costs borne by american taxpayers and making deep investments in japan's own military. purchases oflude u.s. advanced capabilities from jet fighters to missile defense systems worth many billions of dollars, and jobs for the american worker. the prime minister and i also discussed ways we can deepen our friendship. pleased japanese companies

have announced investments in the united states worth more dollars -- $8 billion. 17,000 jobs. what? that's ok. japanese manufacturers tell your data and mazda announced they will be opening a new plant in the united states that will create 4000 jobs. we signed agreements to enhance infrastructure development, increase access affordable energy and advance our goals through economic investment. we traveled to another key american ally in asia, the republic of korea, my official state visit was the first by an american president in 25 years.

before the national assembly of the republic of korea i spoke the truth about the evil crimes of the north korean regime and made clear we twisted allow this dictatorship to hold the world hostage to nuclear blackmail. i called on every nation including china and russia to unite and -- in isolating the north korean regime until it stops it's dangerous provocation on the whole key to what we are doing on denuclearization. we have then the failed strategy westrategic patience and have already seen important progress, including tough new sanctions. we have a security council that has been with us from the beginning.

south korea agreed to harmonize sanctions and joined the united states sanctioning rogue actors northfunds have helped korea's nuclear and ballistic missile programs. it's unacceptable to us. the united states welcomes the decision to remove the restrictions on missiles to combat the north korean threat. we've reaffirmed our commitment to a campaign of maximum pressure. like japan, south korea is increasing its defense contributions. president moon and acknowledged his desire for equitable cost-sharing. visit -- i visited soldiers at a brand-new south korean base paid for almost entirely by the south korean government.

at that base i discussed with the united states military .ptions during our visit president moon and i discussed america's commitment to reducing our trade deficit with south korea. at my direction we are currently renegotiating the disastrous signed under the previous administration. it has been a disaster. 42 south korean companies announce their intent to invest in projects worth $17 billion in the united states. 24 companies announced plans to purchase american goods and services. milan he a and i traveled to

china where as in japan and south korea we were greatly honored by the splendor of our reception. our trip included the first official dinner held for a foreign leader in the for bid and cities since the founding of the modern china, where we enjoyed a productive evening xi and by president his wonderful wife. he pledged to implement united nations security council resolutions on north korea and use his economic influence over the regime to achieve our common goal of a denuclearize korea peninsula. he recognizes a nuclear north korea is a grave threat to china and we agree we would not accept a so-called freeze for freeze agreement. like those that have consistently failed. time is running out and we made

it clear. all options remain on the table. i had a candid conversation with xi about our trade deficit with china and for our trey burke bread -- relationship to be conducted on a fair and equitable basis. we can no longer tolerate unfair trading practices that steel .merican jobs the days of the united states being taken advantage of our over. tradeo announced that will deals create jobs in the united states. from china i flew to the city of ng.ying -- da na

i spoke to a major gathering of business leaders. ofreminded the world america's historic world and the pacific. history, iis proud offered relationships in which indo pacific nations can prosper and grow together. i announced united states is ready to make bilateral trade deals with every nation in the region that wants to be our partner in fair and reciprocal trade. we will never again turn a blind , economicating aggression or anything else from countries that profess a believe in open trade but do not follow the rules or live by its principles themselves. trade abuse has harmed the

united states and its workers but no more. no more. we will take every trade action necessary to achieve the fair and reciprocal treatment the united states has offered to the rest of the world for decades. my message has resonated. the 21 aipac leaders for the first time ever recognized the importance of fair and reciprocal trade, recognize the to address unfair trade practices and acknowledged the wto is in need of reform. these leaders also know their countries must do a better job while in the rules to which they agreed. i also made clear the united states will promote a free and open indo pacific in which nations enjoy independence and respect they deserve. in vietnam, during a state visit, i also met with the

president and prime minister to discuss the growing friendship between our countries. our vietnamese partners are taking actions to enforce sanctions on north korea. we are committed to expand trade and investment between our pledge toand we address the imbalances. i am pleased that the united states and vietnam recently announced $12 billion in the commercial agreements which will include $10 billion in u.s. contents. i visited the philippines where i met with numerous world leaders at the east asia summit. the association of southeast asian nations. we made it clear no one owns the ocean. isedom of navigation critical to the security and prosperity of all nations.

i met with the prime ministers of india, australia, and japan to discuss our shared commitment to a free and open indo pacific. president morte of the philippines thing to me -- the american people and our armed forces for supporting the liberation of -- from isis. we pledged to strengthen and deepen our alliance. at the east asia summit united states negotiated and signed important leader statements on the use of chemical weapons, money laundering, poverty alleviation, and countering terrorist propaganda. asked alllly, we nations to support our campaign of maximum pressure for north korean denuclearization. they are responding by cutting trade with north korea, restricting financial ties and

expelling north korean diplomats and workers. over the last two weeks we have made the stork strides reasserting american leadership, american security, and reimport it reawakening american confidence. i reaffirmed went our vision for cooperation independent and sovereign countries and make clear that the united states will be a reliable friend, strong partner, and powerful advocate for its own citizens. the momentum will launch us on our continued effort to accomplish the three core objectives i outlined. to advance fair and reciprocal of relations with trading partners.

we have established a new framework for trade that will ensure reciprocity through enforcement actions, and new fair trade deals that benefit the united states and our partners. we have laid out a pathway toward peace and security in our world. is our beautiful vision. this is a future where this dream is only possible if america is strong, proud and free. as long as we are true to ourselves, faithful to our founding, loyal to our citizens mother is no task to great, no dream too large, no goal beyond our reach. america is back, and the future has never looked brighter.

thank you, god bless you, god bless the united states of america. >> should roy moore resign? should he resign? trump that was president speaking, ask questions after he gave his speech, he refused to answer and walked away. he was met with great respect for the united states was met with great respect during his trip. they talked trade. there is no actual announcement. he said they have agreed to step up pressure on north korea which is seen as the critical elements here. the focus has been to promote free and open indo pacific region and talk about her balance and economic relations. marketerated the stock rise.

joe: he was big on generalities. he said respect many times. what it was short on wise specific details. also, he didn't take questions. that question was shouted about roy moore. he declined to answer it. lot of: there was a emphasis on shared commitment but in terms of concrete progress we have not really seen that. people are questioning what has washington done? >> i think you nailed it. it is about the followthrough here. i want to bring in kevin and margaret. sees going to be tough to concrete follow-through here. start with north korea. do we think we have made an increasing consensus on how to tackle north korea?

lot of what is important in terms of north korea and the steps happening behind the scenes, one is something we do not know much about. whatever the u.s. efforts are that he seems to communicate or negotiate with north korea. we did see that north korea did aggressionacts of during that trip. during that trip some strong rhetoric about this. the president and his administration do feel they have and allowed to change china terms of cracking down on north korea but not as far as they want to go. u.s. efforts have involved working with japan and south korea to triangulate and ease tension between those countries. it is hard to talk about them. they are new wants.

what president trump does, what you saw in this half hour senate remarks, more than anything else his tripense of against criticism that it did not go far enough. i think that has been tremendously frustrating for this president. he feels like he has done stuff foris not getting credit it. sometime after his speech it turned and went sideways, and he is irate about it. >> he spent time talking about trade, emphasizing this commitment to reciprocal trade with partners across asia. we know they are working on a trade agreement. we have around five of the nafta talks set to begin as well. what really has been accomplished? has the needle been moved? i know that the deadline was extended.

>> nafta talks taking a breather , but set to resume. mexico and the united states want to complete talks by the spring. the president touting significant deals regarding the defense community as well. not a massive that the president and his administration had hoped for. , the tax reform package that lawmakers want to address by the end of the year, just while the president was speaking, ron johnson suggesting he is a no vote on the senate

version. susan collins is a may be, so it looks like the votes are not there in the senate yet for their to be an advancement of this. from theember health-care debate, they can only afford to lose two. joe: real quickly on this tax who are we looking for next that we might hear something from? >> senator johnson's reasoning for why he is against this, he says the senate finance committee version moved in the wrong direction on the pass-through rate, so look for that to be a sticking point. the conservative job creators a six-figuret with pressing susan

collins to get on board with the tax plan bill. keep looking at the same folks for thean collins repeal of the individual mandate. we all remember the health care debacle. look for that. i spoke with senator pat toomey, who said he does not think including a repeal of the individual mandate will hinder chances on getting this done. this is still very much in the stages of negotiation, so every no vote will be incredibly important. house is set to vote on this tomorrow. i would anticipate a week after thanksgiving for when the senate could vote on their version. margaret, i want to bring you in. when we hear questions at the end of that statement that they

were targeting roy moore and whether the president will apply pressure. awayis not going to go until the president actually says something. conversationstial with white house officials, there is nobody who thinks that what is going on with roy moore is great for the republican party, the white house, or america in general, but how affected the president thinks he can be in the appropriate way to communicate that, we just don't know yet. for the president, the passage the house and senate on taxes is such a priority that this situation with roy moore, which is important, is the last

thing they want to be dealing with it. the president will be going to the hill to talk about taxes. what will he say and how much will he weigh in? i've been told not to expect him to come with his list of demands, just general discussion. you can expect behind closed come up asit may well. i think we would hear something from him by the end of the week. julie: thank you. we did not talk about water moment. when he took a swig of water at the podium. joe: after making such a big deal about marco rubio drinking water. marco rubio tweeted the

following. scarlet: at least he has a sense of humor about it. reform islk about tax our next guest. thank you for coming in today. the white house and republicans make the case tax reform is needed to get things going and .et more people at work to work the stated goal is to provide relief for the middle class. let's talk about it from the point of view of ranks. do the bills help or hurt banks over all? >> i think it helps banks. banks tend to have a higher effective corporate tax rate, so it should help banks. and they have fewer deductions. generally, i support the corporate rate.

i regret it has been so politicized. bipartisano be biased partisa support around this. multinationals that can ,ove operations around a lot those are the ones that have to pay significantly lower, so it is really upside down. the tax rate is something in the company looks at. i think it will bring more business and create jobs over time. getting the corporate tax , rather doing it asap than negotiation over other things. >> they are cobbling boats together. it is cross purposes. votes together.

it is cross purposes. think a do you corporate tax rate cut is important for growth? it looks like our companies are crushing everybody else. they are sitting on mountains of cash. >> from a shareholder perspective, they are doing fine, but in terms of job creation in the u.s., i don't think we are doing fine, and part of it is we have a noncompetitive corporate tax rate in the u.s.. the europeans and everyone else in the world has gotten smart about this. there has been a lot of debate among economists. my personal observation and common sense says this makes sense. it used to be bipartisan. scarlet: let's talk about fin

tech. , a are an advisor to bloom company that helps people manage their 401(k) investments online. the distinction between a digital financial advisor and robo advisor. >> this is not really much different. they are a kansas company and completely independent. they don't have products they are trying to sell you. the only way they make money is the $10 fee they charge. each quarter they make sure your asset allocation is right. especially for young people starting off with small balances, it is hard to do themselves, but difficult to get cost-effective help to do that. bloom is trying to fill that niche. joe: one of the big debates in space is hold versus by for

the incumbent players. for aakes it hard management company, financial institution, to do what bloom financial or robo can do? established, you can this really reacted to change. viscerally react to change. there can be a lot of denial institutionally. culturally, you get in the protecting rather than taking risks and developing new markets. buying versus this organically theret you will see, but are some banks trying to do it organically and enclaves where people are coming in flip-flops , relaxation come

innovation, taking risks am a that's done in a separate enclave from the bank. julie: great chatting to you. some breaking news. cisco with results. the outlook is boosting shares. the fiscal second-quarter revenue gaining 1% to 3%. oflysts looking for gains just under 1%. the quarter that just ended, eps cent,g estimates by one $.61. revenue in line with estimates, $12.1 billion. the adjusted eps for this quarter is $.58 to $.60. $.58,ts were looking for so cisco a boost. julie: a play in distressed debt

markets. with views onn the current environment. from new york, this is bloomberg. ♪

♪ i am mark crumpton with first word news. wilbur ross and the firm he founded are facing a lawsuit from three former managing directors. plaintiffs claimed the company and properly charged millions in .ees to handle equity funds the suit was filed in new york state supreme court. a major blackout has hit puerto rico's most populous region as the government announced it met its goal of 50% power generation

two months after hurricane maria. the blackout is affecting san juan and nearby cities and towns along the north coast. power had been restored in recent weeks. a day ofs declared national mourning after floods on the outskirts of athens killed at least 14 people wednesday. a severeing came after overnight storm brought driving rain to the capital. into muddy rivers that carried away vehicles and tossed them into piles on road size. -- roadsides. torrential rain is expected tomorrow. nato's chief's confidence the alliance will have sufficient forces in 2018 to fulfill its training mission in afghanistan after lobbying allies to increase troop contributions. told thetary-general ap today that nato won't fall short. he said we are still getting

more allies on board with additional troops. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. lower rates, but higher , high in europe or the united states, a widening , so how should investors interpret these moves? atare joined by our guest now. great to have you on the show. can we get your views on the moment?ld market at the we've had guest essay fundamentals aside that spreads got to tight, so a bit of give back makes sense here? indigestion,use or not the beginning of a dramatic anything. oilad an ugly collapse of

and you saw the default rate in that sector go crazy a year and well north of 12% 15% in that sector. you have not seen any sector exploding this year at all. we have seen country issues, but i think the 2.9% number for monthly default rates looks tidy . it is low. average yields have been too low, 5.5% for junk bonds. when the fed is moving interest rates closer to normal, we should expect some get back and spread widening. julie: the point you make about the widening in spreads when oil prices were under pressure, we ultimately saw high-yield companies managing to rollover their debt, so even with the concern there, they still got the liquidity they needed.

today, thed to situation looks pretty benign, but you have pointed out the size of this market has increased dramatically. even if you are talking about low default rates, a significant proportion of companies are struggling. the numbersd to rip off a sheet spontaneously, but if you take the question to the 1980's and 1990's when we were welding the junk bond market up -- building the junk bond market lowany percentage, even default of 3%, is massive in dollar terms and number of companies. between980's, we had 20-30 bankrupt companies the year. we had 20-100, companies going bankrupt per

annum. billion.p to $100 com, the peakd , buteen 260 companies hundreds of companies going bankrupt. this year, i low default billion to $650 billion of defaults this year. we are bumbling along in a benign way. stress,have seen the and it's not difficult to point out, some telecom has been weak. ierhas been the junk side of junk. are there some other parts of the market where you are saying this is getting a little bit more real? >> we are not seeing those

signals yet. the issueance is still very strong. -- the issuance is still very strong. we have large rollovers and junk bonds. every five years we have a camel hump to get over, and this one is $950 billion in the next five years with $400 billion in 2020 a loan, so if you're looking for a small camel hump, focus on 2020. scarlet: interesting. if that's when we are likely to see a correction, how will it unfold? will it be similar to the great recession? my own horribly pessimistic view is it will be chaotically worse. scarlet: 2008-2009? >> that was a systemic breakdown

across the entire system and allally, but what we are growth, aof etf stunning invasion of mutual funds on the equity side. in the last five years, etf's are junk bonds have come about. these are instant liquidity instruments, overnight, if you own the etf. the junk bond and the triple c overnightat is liquidity. there is no snooze button in the etf market. if you don't get out fast, you will get caught in a cascade of terrified etf people who will blow the sox off a price collapse. scarlet: people were worried we saw that last week, but there is no indication of a downward spiral. it is quite orderly. >> take yourself back to detroit

in puerto rico and the mutual fund. what brought that crisis to a price collapse head is the panic among retail investors eating out of their mutual fund as quickly as they could. human behavior is always the common thread. patterson, thank you so much. coming up, we debut our new charts. we would do technical rundown on the risk off mood plaguing global equities. from new york, this is bloomberg. ♪

♪ it is time for our new weekly segments, charts .

been an certainly has air of risk off in trading action recently. joining me now to break this down is our guest. you have had tremendous calls over the last number of years, and three weeks ago you called for a near-term pullback. now we have stocks in a pullback. can you talk to us about that. >> it is all about sentiment. the tape was momentum driven. the leadership stayed strong. was up eight weeks in a row. it created a market characterized by extreme greed. the sentiment got ahead of itself. it tends to peak ahead of a peak s&p 500. simpl

we are not working off that greedy sentiment, so to speak. one of youre favorite functions is grr. >> that's right. been they really has stellar outperform her. it is unbelievable. quarter to date, year to date, up more than 75%. that narrow leadership has not been indicative of a week tape, but shows how key the sector has been to the s&p 500. my thought is the pullback would be triggered by these large-cap technology stocks. we are starting to see that rotational move. been the best performer, it is followed closely by utilities and re its and areas of the market that are more defensive in nature. -- my processts

for the next 1-2 weeks. persist for the next 1-2 weeks. this is a question i'm getting from clients about energy. seeing a long-term turnaround in wti crude oil, which you can see in this etf. notice of that we have a long-term inverse head and onlyders, and that is not absolute terms, but relative terms. 500,s divided by the s&p and that ratio has cleared its 200 day moving average, showing that isg-term reversal manifested in wti prices. also put together a terrific s&p 500 chart using the cloud.

can you take us through this one. >> it is the shaded area on the chart. support,way to derive a great gauge of downside risk when we have these corrective phases. red iser boundary in about 2% below the s&p 500. for the nasdaq 100, that would be closer to 4%. to me, that is a nice gauge of short-term downside risks. >> a little more pullback, then perhaps into of the year rally. back to you. julie: great work. up next, the fifth round of nafta talks without the top trade officials. negotiators arrive on friday. the concerns are that reaching a deal won't be imminent.

we will be discussing. from new york, this is bloomberg. ♪

♪ >> i am mark crumpton with first word news. president trump says his trip to asia says america's standing in the world has never been stronger. the president spoke about his five-nation asian tour. >> we will never turn a blind eye to trading abuses, cheating, economic aggression, or anything else from countries who say they profess open trade, but do not live by its principles themselves. >> the president called the trip historic and said the nine at states was "did with incredible warmth, hospitality, and most importantly, respect." moore campaign will hold

a press conference in half an hour. candidate has been under pressure to withdraw amid accusations of sexual conduct with teenagers. it is unclear who will speak. president trump's daughter weighed in, telling the associated press, "there is a special place in hell for people who prey on children." a spokesman for ron johnson says he will oppose the current republican tax bill. slime republicans have a majority and can afford to lose only two gop members of they want to pass a bill without any democratic support. a revised version of the senate proposal released tuesday night calls for eliminating the obamacare individual mandate. the first director of the consumer financial protection bureau said today he would leave

the position by the end of the month. the announcement comes amid runing expectation he will for governor of ohio as a democrat. his early resignation will give president trump a chance to appoint his own director of the agency. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: let's get a recap of today's market action. down day across u.s. equities and the world. tone, the dollar slumped, treasuries rose, yields came down, persistent concerns about perhaps global growth, the china data this week did not help. what next for tax cuts? scarlet: and that persistent yield curve flattening, 63 basis

points on the 2-10 grabbing attention now. julie: thanksgiving is next week, so perhaps a winding down of consolidation. whole have a thanksgiving. of markets i will tell you during the break. scarlet: sounds intriguing. julie: "what'd you miss?" steven mnuchin has gone from hollywood movie financier, regional banker, to the signatory of the almighty dollar. today to seer production of the new one dollar bills. the new bills are scheduled to go into circulation. scarlet: the photo with him and his wife and the wife with the glove, it is just about the perfect photo. it is really something. scarlet: it has gone viral, hasn't it? julie: i was not looking at him

nor the dollar bills. scarlet: anything with his wife has gone viral. julie: they look so happy. just go on twitter and have a look at what people are saying. bill comesen that out, we will be all collecting our version of it. of the trump administration, according to the bloomberg alien heirs index, net worth is down from $3 billion, after bloomberg determined figures he provided could not the independently verified. this follows the forbes report that says wilbur ross inflated his fortune to the media for years. before he joined the trump administration. scarlet: $860 million is still wildly wealthy, but it might indicate the degree to which

billionaires get this special the wayn our society, we think they are smarter than the rest of us. people feel the need to be in the three coma club. torlet: ross declined comment through a commerce department spokesperson. julie: i was going to tag on "allegedly." "what'd you miss?" officialsvel responsible for nafta said they will skip talks for the first discussions to their negotiating teams come the latest sign that reaching a deal perhaps is not quite so imminent. andd take some the politics hot air out of the discussions. for more, were joined by the senior fellow at the peterson institute for international

economics from washington. great to have you on the show. what we saw from the fourth round was a push back on the time horizon, and the mexicans and canadians were astonished by the stringency of the demands coming from the united states. in your view, do you see the timetable of this person back further beyond march? >> i absolutely do. looked at how long it takes to negotiate a trade agreement with the u.s., and there are only four agreements that have or been negotiated in less than a year, and all of them use templates. they were a lease where you sign an ore dotted line like om jordan, so i don't see this agreement happening in a few months. the fact that they moved the timetable is a good thing, because it means they will allow

more time to talk and work this out than initially with a december cut off. joe: at the end of the last the shocker was the white --se in since this insistence that nafta come with a five-year sunset clause. mexico saying we would be fine provided it does not lead to nafta's death if we don't like it. is there a compromising your view? >> i think there is. the sunset clause is one of the true coney and proposals by the u.s. wayproblem with it was the they worded it, which is it had to be renewed and order to stay in effect. if they were to worded that you could terminate, which is already in there and you can terminate with six months notice , i think that would be ok, but

it has to be renewed. imagine if it has to go through congress every year. imagine if in your marriage that you had to renew your proposal every five years instead of actually filed for divorce. i think that would not be a good way to do it. scarlet: that would be messy for a lot of people. has threatened multiple times to call the u.s. out of nafta. i suppose i could still happen because he is quite unpredictable, but what is the likelihood of candidate mexico giving six months notice? >> i don't think they will do it. the u.s. would have to do something really dramatic for them to walk. i think their strategy is to sit at the table, listen to the u.s. , be respectful, but they know they gain a lot from this trade agreement and they're not going to put their people at risk, jobs at risk, just to stick it to the u.s.

walk.t think they will there is a danger that trump walks. you can see it in the peso, depreciating sharply when trump was elected. it came back, and recently has gone up again with the last round. concern,here is some but i don't think it will be from the canadian or mexican side. julie: what happens if these talks collapse? what happens to the mexican peso given the tensions feeding into the currency, a bellwether for the success of these talks? >> absolutely. we saw it with brexit when the u.k. voted to leave the eu, the pound plummeted 15% when donald trump was elected. that the pesot

would end up 15% at least down from where it would otherwise be, which is an irony because that is where the trade deficit talkss, even though these are supposedly about reducing the trade deficit. julie: great point. joe: crucial point. another controversial area is .he rules of origin trump administration wanted a lot more automotive parts content to be in the u.s. news out today, 70 house republican and democratic congressman telling the trump administration not to make dramatic changes on this front. what kind of leverage does congress have? obviously they can advise the president come a but is there real leverage in terms of the process of the u.s. extricating itself from nafta if they don't like how it is going? i think there is.

there is a legal debate raging about how much leverage congress house. trump can say he will with drawl, but if he does not put a deadline on that, and there was implementing legislation of the nafta that congress voted in, and if that is not changed, the u.s. could be said to be out of of thebut actually much laws that put nafta in place could remain in practice, so it is possible congress could really stop him should they so desire, and certainly that is where a lot of the lobbying is taking place now. julie: brilliant. thank you. scarlet: more earnings news, l brands reporting results. the outlook for this quarter,

fourth-quarter eps misses estimates. it gave a range. if you take the midpoint, that misses the estimate. l brands is trading lower in after-hours trading. from new york, this is bloomberg. ♪

♪ "what'd you miss?" emerging markets have benefited from the growthless story. -- the synchronous growth story. at thisk emerging-market equity fund, up 36%. does this mean the risk off tone and disappointing china data

changes anything here? let's bring in our guest. when you look at the china data and how commodities have performed this weekend how things have come off a little bit, what is your take on that? >> it is short-term profit taking. we have seen the market north of 30%, but we are bottom up investors. seeing earnings accelerate in emerging markets after a five-year hiatus here it you're seeing 20% earnings growth. will have cycles within that and commodity selling off on chinese growth fears, but longer term the earnings is looking positive in emerging markets. scarlet: in terms of the drivers for growth, is a technology? we see the tech story driving everything in the u.s. >> if you look at this year in particular, a lot of performance has come from technology.

that has come through two markets, china and korea. adr's the internet, listed in the u.s., as well as the hardware side in korea. is driving earnings, but also driving the market. last year, a lot more was ,ommodity driven off the base and commodities got hit hard and earnings decline significantly and the waiting had come down significantly in the indices, so now they seem to have based out. that looks a little bit more positive longer-term. joe: in terms of the data lately from china, and not just recent data, but also comments out of the party congress where xi jinping talked about the quality of the growth rather than raw numbers. of cause forsort

concern? talking about synchronized global growth as one of the defining stories for aside and the data earnings aside give you pause? >> a lot went into commodities and speculation, but we have dilution aspects of growth, where labor and blue-collar labor is now priced well in international standards. spareon't have as much capacity on the labor front, so they don't need to keep propping up and spending more in terms of pumping out commodities to export globally. that is where they have to keep it balanced.

,t is about the living standard aclean environment, and coefficient more skewed in emerging markets. julie: congratulations on the performance. i'm looking at the country weightings an individual weightings in the fund. you are 50% china, korea, and taiwan. the first question would be the exposure, particularly and south korea. south korea has been resilient. , tencent,question , the moment we get any kind of shakedown in markets, these are the guys investors will pull back in positioning. had you react to those things? >> we tried not to react. we have taken the view, whether samsung, we stayed

disciplined on valuations. we have been long-term owners of these assets. in terms of china, korea, and found, that is where we valuations being attractive when people are worried about north korea, china, the hard landing that people were talking about, and that is where we built up our positions. we like india. it is a great market. the market has gone from 14 times when we owned a lot of india to where we have to peel back and the market is 20 times earnings. the earnings are not quite coming through. are not taking a short-term view. ,ased on valuations, some of it

we have to stay disciplined and trim exposures, but longer-term we feel we like these businesses. do you seeh korea, any reason to trim exposure and south korea? >> not at the moment. into ah korea escalates military situation, that is risk off globally. we need to worry about south korea, but you have to worry about japan and who is taking the other side of it, china and russia, so that is a global selloff. certainly not limited to asia or emerging markets. thank you so much. julie: up next, the latest on cashierless store. we will discuss. this is bloomberg. ♪

♪ breaking news, mattel has rebuffed the latest approach from hasbro. we had seen shares of both toymakers rally on those reports. for now, reuters reporting mattel has rebuffed the latest approach. mattel shares trading lower along with hasbro. news, more breaking nelson peltz and focus, having one a png board seat on a recount. we will bring you headlines on this. ,his has been an ongoing battle trying to get a seat on the board of procter & gamble. they said they are not trying to replace the chief executive or

break out the company, but they have one seat on the board. amazon on the cusp of opening is first cashierless store. the final kinks of amazon go, which aims to eliminate the checkout line. the move comes after its acquisition of whole foods. is our us to discuss bloomberg technology reporter to break the story. how close are we to seeing cashierless buying at whole foods? >> we are very close. amazonineers working for have been working to perfect the technology. the team is really working on the superficial elements of rolling out this concept to the public. they are working on marketing, on in-storeo speed customer service issues like

returns or if something spoils or theft, so we are very close. we don't have an exact date, but we are in the home stretch here. joe: i have a dumb question, how does it work? >> they don't tell us exactly how it works, but they use and manyly sensors cameras to understand if you take something off a shelf, pick it up, and you can just walk out the store. it also uses facial recognition technology to link your face to your amazon account. in terms ofout getting people comfortable with the idea of walking into a store and taking stuff out? anything they have learned about testing and how humans behave in that environment? >> one of the biggest issues they have been having is with children. you know that it is often a tricky experience. kids will pick everything up and put things in their pockets and

walkout of the stores with those items. amazon has had to spend a lot of time on dealing with children, how to make sure they can account for these under-five that is probably touching everything, but not intending to buy it. julie: dealing with legal shoplifting. couple?you are a who do you charge? i don't like people knowing who i am based on my face. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

♪ don't miss this, walmart reports earnings tomorrow. joe: initial jobless claims. julie: tesla unveils its first all electric semitruck. scarlet: that does it for "what'd you miss?" joe: have a great evening.

alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." a spokesman for senator ron johnson says the wisconsin republican willow rose the current gop -- will oppose the

current gop tax bill. affordmajority can only to lose two members if they want to pass the bill without any democratic support. a revised version of the senate proposal calls for repealing the obamacare individual mandate. a lead lawyer for puerto rico's for -- federal oversight board said the territory is considering suspending debt service payments for five years, the first indication of how the devastation caused by hurricane maria will impact the restructuring of the island's debt. the moratorium may be included as part of puerto rico's plan to reduce what it does through bankruptcy. greece has declared a national day of mourning after floods killed at least 15 people on wednesday. the flooding came after a severe overnight storm brought driving rain to the greek capital. roads turned into money rivers that carried away vehicles and tossed them into piles on roadsides.