eight women told "the washington post" he made unwanted sexual advances to them. pbs and it is sealed to carry his -- his deal to carry his long-running show. in a statement, rose apologize for what he called his inappropriate behavior. "the new york times" is reporting that state government officials have accused secretary of state rex tillerson of a violating federal law. officials say that secretary tillerson excluded myanmar, iraq, and afghanistan from an annual list of countries that use or fund child soldiers. the department previously acknowledged that those three countries were conscripting children. any nations on the list are prohibited from receiving financial and military aid from the united states. german chancellor angela merkel appears unfazed after a coalition government -- after coalition government talks broke down. merkel's singling she will run sayny new election,

that she is "a woman who has responsibility and is ready to continue taking responsibility." she added that her pre-election commitment to serve another four years stance. u.s. secretary general -- u.s. secretary-general antonio guterres says that terrorist groups and criminals are capitalizing on conflict to exploit innocent civilians in ways which may constitute war crimes and crimes against humanity. speaking at a security council meeting today, the u.n. chief called for urgent action to combat human trafficking and highlighted the recent video aired on cnn of african migrants being sold as slaves in libya. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪

julia: live from bloomberg world headquarters in new york, i am julia chatterley. scarlet: i'm scarlet fu. joe: and i'm joe weisenthal in washington today. julia: we have 30 minutes from the close of trading in the united states. the s&p 500 hitting the 2600 mark earlier in the session and inching towards again. joe: the question is, "what'd you miss?" scarlet: president trump's tweets setting the stage for the legal battle between at&t and the justice department. his open criticism of what he calls cnn's fake news puts the network at the center of the proposed acquisition of time warner. the challenge of passing attack still hangs over capitol hill. givesordham of citigroup us her scorecard on washington. angela merkel faces an impasse.

first, though, let's get a check on where markets stand right now. abigail doolittle is here with the latest. julie was telling us about the critical 2600 level. abigail: indeed. it is a big rally day for the stock. look at the s&p 500, the dow, nasdaq. we are looking at big gains in a week, not only did the s&p 500 theier above psychologically important mark, we are looking at major highs -- record highs for the major averages. ,ook at semiconductor index hitting an all-time high, exceeding the tech bubble high in 2000. some analysts and investors instead of just they consider the stock to be a tell on what is ahead, considering semiconductor chips go into the technology used by so much of what we use today. the fact that the stocks are going high mesa just that orders and economic demand and growth is behind it. when that rolls over, that could be a tell on the finance, but

right now, strength across the board. with the nasdaq higher by about 1%, not surprisingly, tech is the best sector. let's dig in to those winners. apple and microsoft are the two best of the 500. there does not good to be anything behind this. it appears to be a sentiment-driven rally. perhaps with apple on the iphone x, and as we are entering the holiday season, very important for apple. thatat facebook and also -- and also that. interesting that these 2 stocks are higher. net neutrality was rolled back. ultimately, that should hurt these internet publishers, but today not the case at all. it is not hurting twitter, either. twitter is another internet publisher that the rollback of hurt.eutrality should

this is an absolutely great function. we see that twitter is higher by more than 2%, unless than average volume. that might be a concern to some. at the consensus rating -- most analysts are neutral. goldman sachs is positive on twitter, saying that visitor growth good help the company. we see that twitter is trading in line with its peers. in the past, it has traded at a premium to the peers. 30% this up more than year, but considering that the numbers are going in the right direction come all of this may suggest there is more room for twitter ahead. let's look across asset class and see if it confirms the gains, and interestingly, julia, it is not. points, telling us that the long end of the curve is rally. the yen is rallying against the dollar. we have gold rallying a little bit. we still -- we saw this last

weekend turned into a bit of a pullback. finally, bitcoin more of a risk-on or growth as it can down 1.6%. we have the record highs with the stock, but behind the surface, mixed messages. julia: thanks so much, abigail. what'd you miss? republican leaders are scrambling to pass tax legislation in time for the christmas holidays. the unusual speed on this inflation is raising expectations that tax overhaul is within reach, but it is also creating distinct faultlines on capitol hill, where the sentiment is only growing more divisive. headwinds from the u.s. economy and the broader economy, the world outlook chief global clinical analyst at citi -- mcafee with us. this is the perfect intersection of economics and politics in the united states, because many looks at the tax overhaul efforts and say that if they don't get this done and get this

under their belts, this is going to have applications going forward, particularly for the midterms. do you agree? how much weight should we be putting behind that view? tina: that is exactly the way most investors conceptualize this juncture. because republicans need to pass this, they therefore will. in fact, as a political than ant rather economist, it is a matter of political will and capacity. the margins very narrow for victory. now, there's a chance attacks tax package could be passed by year-end, but i doubt it, and i haven't gone wrong this year expecting that the so-called agenda would not materialized police not yet. materialized, at least not yet. scarlet: how messy will this tax overhaul be? they are rushing to get this before 2018 so they can start 2018 with a clean slate.

tina: it republicans to go home for the christmas recess and have this done. in terms of the calendar imperative, if a tax bill is going to pass, it has to happen by easter, because members will go home to campaign for the midterms. in an outcome that one of my clients called fordham's law, the longer it takes for something to pass, the less likely it is to happen. scarlet: health care, look at that. tina: and although health care is very different in terms of its importance to the republican political agenda, we saw each successive bill failed to find enough support. both of the health care bill and the tax reform agenda impact everybody in this country. it isn't necessarily something that is a quick win. , you probably have

been talking longer than just about anyone we have ever talked to about what you characterized years ago as a fox populi risks -- vox of not just a u.s. phenomenon by any stretch. is there anything you have learned about the connection between these grounds full movements, which one might characterize the trunk movement rump movement as come and the inability to deliver on promises, and is the inability so far we have seen from the u.s. government and natural outgrowth of what we would expect to see on the campaign trail? tina: thanks, joe. sorry you are not here. scarlet: we will fix that soon. tina: one of the points that i hypothesized in the original vox is the linkrch between economic growth and political stability was broken and pretty much every successive election has reinforced that.

in a terms of the ability to pass an agenda, that is not even related to the vox populi point, as much as i would like to take credit. it has more to do with political capital. the fact is that when trump came polarization,idst not only within the country, but also divisiveness within the republican party, and this is where again the financial , rants, as often they do far ahead of the political , assuming that because republicans control the white house and both houses of congress, pretty much anything they wanted would pass. that hasn't been the case. when we have seen from the trump administration this year, and perhaps i'm getting ahead of your next question, richard haas has called it a doctrine of withdrawal. julia: i want to try to steer her rather than keep it in the united states will stop the reforms -- tried to steer this

to europe rather than keep it in .he united states wil what you make of germany, and angela merkel's inability to form a government? is that going to have broader spillover from the strength in the domestic economy, but in terms of the interplay in europe? first of all, fresh off the boat, as it were, from london, the brexiteers are suggesting that the setback for merkel is an opportunity for brexit. i don't buy that at all. there was a wave of market euphoria after the macron outcome, and we have probably the most constructive political outcome we could have expected in this wave of elections, but he said that for merkel is important. i don't think that -- but the setback for merkel is important. i don't think that if there is a new election and against expectations merkel

doesn't mean that we will have a populist leader in germany. what that means for brexit is the potential for six months more of either coalition formation talks or a new election, at the same time as the may government is hitting the political headwinds and as many in the u.k. said that the u.k. still negotiating with itself on brexit. i'm not sure it signals a better opportunity, but for those who are optimistic about franco german cooperation on european reform, they will have to wait. julia: franco-only for now. joe: tina commodities the committee recent u.s. -- tina, beastly, in the recent u.s. saw thes in virginia we red cross do well and labor in the u.k. elections months ago. where peopleera can only hold onto power for short time before the whiplash into another direction?

pure well, that is just a anti-incumbency trend, and that is what we saw during the eurozone crisis. you could predict who would be the next occupant of the leading office on the basis of who was there before. the virginia outcome is fascinating, especially who won those seats at how different they were. lots of adjusting observations from pollsters who are very experience at the district level . it is too soon to extrapolate virginia into a national trend. could it be the beginning of an anti-trump backlash? it's possible, but i really am not forecasting anything like that. i tended to look back in history, because we have a tendency of analysts and commentators to think that everything is new now. go back to 2008, when obama won

resoundingly and the political obituaries were written for republicans. i remember once and get the republicans would be out of office for a generation. they came storing back -- storming back in 2010. to have a wave election next year in the midterms could be a or itation of trumpism, could be just the kind of trend we have become used to in an era where political honeymoons are short and approval ratings are low in most cases. the lack of trust in elected officials is only becoming a worse problem. scarlet: perhaps american voters negotiating as well. tina fordham is going to be sticking with us. we will be talking about the kind of good omission by deploying women -- unleashed by deploying women in the economy. this is bloomberg. ♪

scarlet: what'd you miss? forget tax reform, forget infrastructure investment. the most significant way to boost global what is to include more women in the workforce. that is the findings of a new 85-page report out today by citi. tina fordham is with us to talk about the details. you frame it in so many different ways. if you include or women in the workforce, it is more effective and financially impactful then fiscal reform, monetary policy reform. more to do with india or china's contribution to gdp. tina: that is really an attention-getting statement, isn't it? that is why it is so powerful. ,ne of my key objectives here and i am on a mission, is to reframe the way that investors,

policymakers, everyday people think about women's participation in the economy. most easy wayle to boost growth. our economists estimate that if we reach parity in terms of representation in the workforce, it could be 20% growth over time in the u.s., unbelievable. we arrived at 6% as an achievable number. when we look at the 1.5% from that tax cuts, looking at instead of the corporate applications, show me a policy maker who is looking for ways to boost growth. scarlet: this seems like a no-brainer, an easy one, and yet there is a squeamishness you ci te among business leaders about diversity agenda. tina: well, i have this is anecdotal evidence when i sent this research that we first put out in 2013 on the road and i had a ceo saying, thank you for

this, because i'm more comfortable talking in terms of growth rather than diversity, which makes me squeamish. men don't like the diversity concept. it is seen as corporate claptrap, box ticking, pr, etc. but they buy the idea about growth, and increasingly have investors demanding these cancer criteria. what many women find it ruffles their feathers, too, because they don't want to be hired just for being a woman. they want to be the best person for the job and not have other people assume they got the job because they are a woman. tina: that is why the diversity agenda, policies presented as concessions to women, like flexible work and family leave, need to be positioned as gender-neutral. work-life balance and family leave as well. if we want to believe that if we are still in a meritocracy, although they did it for that is not so persuasive as it might be, then yes, it undermines

women ultimately. we need to gender-neutralize family leave policies. and i suggest we make politically neutral these growth-oriented policies. julia: he just needs rebranding. the whole thing needs rebranding. joe, sorry. , what is and a couple of a country or an economy that has seen a big expansion -- an example of a country or an economy that has seen a big expansion in women in the workforce where you can point to this is the clear policy that did it? what is the suite of policies that historically can move the dial? tina: well, first of all, have to look at the massive increase in emerging markets middle class and understand that a big component of those increases in china, brazil, and elsewhere was win joining the workforce. the emerging markets middle-class is a big driver was more women. in terms of countries that have actually made a conscious effort

to increase female labor force participation, in our paper we have got some comparisons. the u.s. and canada is an interesting one. it never pays in america to compare the united states to scandinavian countries, because that is a big turnoff in washington. but the u.s. and canada arguably is much more similar, and canada did make an effort to, for example, remove second earner -- the so-called marriage penalty on second earners, and to introduce family leave and also to do more on childcare, which again benefits fathers and mothers. and what's more, they saw a noticeable bump in gdp. they know that this works. it is the third arrow of abenomics, for example, in japan. although there are still obstacles they are to obtaining the kind of labor force participation japan would like to have, japan last year over took the united states in

labor force is the patient. the united states was a lacquered, and we are going -- was a laggard, and we're going backwards. like we can't feel talk about this subject without talking about recent events like harvey weinstein and the allegations that have been made there. do you think we are at a watershed moment in terms of perception of women? i don't just mean in terms of male behavior towards women, but also female behavior as well. do you think this will be a watershed where women behave differently and defend themselves better, particularly senior women? this is been a common theme -- scarlet: in the workforce. julia: they feel they cannot defend younger women in the workforce. do you think anything changes finally? -- fundamentally? tina: i'm not sure yet, to be honest. let's take another controversy are still a couple, mass shootings in the united states will stop every time there has been a mass shooting, there is

this just in this is the main point and the debate will change , and the public opinion does not shift very much. i think perhaps at the senior levels, corporate levels, opinion leaders, this sort of thing, consciousness is changing. for all the stories we see in the press, there are many stories that are untold. i suppose as an analyst, looking at this, what interests me is whether we get to a tipping point. we have to remember that men are victims of sexual harassment as well, and so this is really about power and the way that power is used and abused. that is also a gender-neutral issue. julia: great point. scarlet: well said. tina fordham, we never have enough time to talk to you. [laughter] scarlet: have to bring you back. coming up, it is the department of justice playing politics? the at&t ceo telling regulars, we will see you in court. this is bloomberg. ♪

julia: what'd you miss? time for our stock of the hour. shares of under armour had been falling along with other retailers today, but a new report exacerbate the drop. julie hyman has all the details. julie: we have this executive departure that "the wall street journal" reported and bloomberg has confirmed. a gentleman who had been the head of footwear at under armour is leaving. the business has been troubled. you see the former senior vice president of footwear at the company. a manl be succeeded by who was general manager of the basketball division there. basically, underarm -- under armour has been suffering with the footwear. it had early success but since then did not duplicate that. a combination of factors -- changing consumer trends, as well as hot competition from nike and adidas.

you are looking at the year-over-year change in apparel and footwear. both of them have been seeing at least stagnation, if not outright declines. scarlet: that's an ugly for under armour. the market closes next. this is bloomberg. ♪

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scarlet: "what'd you miss?" gaining steam is the s&p 500. 00. benchmark index hit 26, julia: i'm julia. scarlet: i'm scarlet fu. joe: i'm joe weisenthal. onyou are tuning in live twitter, went to welcome you to our closing bell coverage every weekday from 4:00 to 5:00 p.m. eastern. scarlet: let's begin with our market minutes. we want to start with the brown number for joe because the s&p 2600.sktodid top we have to wait for it to settle. the dow up by seven cents of 1%. the nasdaq gaining by better than 1%. everyone is on pause. people have been leaving all day for their things giving vacation. you're not seeing a lot of volume.

joe: if the s&p 500 is not was about 2600, that will be a depressing holiday. scarlet: we will see. in terms of the actual individual movers, let's begin because we arer keeping a close eye on what happens with at&t and time warner. the doj suing that merger. we can see the stocks for time warner is up by 2.1%. a live discussion about perhaps there needs to be concessions made to satisfy the doj's demands. up,ar tree stores boosting the forecast. signet jewelers with its worst day since 1992. hurricanes and missteps linked to the outset of the credit business, two reasons why signet did not do well last quarter. third quarter comparable sales fell more than expected. campbell soup, its worst day since 1999 as a producer tim put it. no soup for you, but that would

be a different soup company. they cut the annual profit forecast for the year. hurt by an ongoing dispute with walmart and a product line in demand for canned soup. joe: now let's take a look at the government by marcus starting with the 2 and 10 -- bond markets starting with the 2 and 10. two-year yields engineering to charge higher up to 1.77%. meanwhile, long-term rates despite the wrist on the equity 2.36% so thatg to means more flattening. we have to check back in on the long-term look of the 2-10 spread. we are basically at the lowest 2007. since november just under 59 basis points now. still a long way from the inversion, but this relentless grind lower here definitely one of the key macro stories. julia: absolutely.

what that meant was the dollar stayed near session lows. global sovereign bond rally we can call it. not just the united states. the dollar index it self declining. fell against all of the gen g10 fears. -- peers. we had those talks going on. seems withss it lower-level issues in nafta being cited for the reason why we see some strength in these currencies throughout the session. plenty of sticking points remain. i don't want to get too optimistic about this, but i can show you dollar weakness and can canadian dollar strengthening. joe, commodities. joe: yes, let's look at those commodities starting with oil ticking up just under $57 a barrel on west texas intermediate after rising just after under 1%. gold rallying again. earlier in the show, despite the

risk on by, we are seeing -- vibe, we are seeing safe havens like gold today. industrials also gaining. copper up just over 1%. those are today's market minutes. scarlet: for more on the s&p 500 hitting a new high and the relentless flattening of the yield curve, let's bring in cameron. are we making too much of the yield curve? with talk about it every day and how it is the flattest and over a decade. we say that once it inverts, it will be the sign of a recession. it is not there yet. cameron: that is probably right. certainly if you go back and look over long periods of history, the yield curve almost always flattens when the fed is putting rates up. last time i checked, they are still doing so. i think what has caused people to stop and take notice is the speed i. i protectively couple of different things.

one is the treasury announcement a couple weeks ago that they were not going to extend maturity of their bond profile as they increase the issuance with the fed starting to wind down the size of its balance sheet. people have perhaps been thinking that would happen. that has encouraged selling at the front end of the curve. two-year note yields have been marching higher literally every day. that is a mechanistic flattening. i think this one has encouraged players in the marketplace to positions.tening generally speaking , you have to be careful with how you do so because it is a negative carry. the can have a flatter on and it does not move, you end up paying. so you have to be certain you have a tailwind as a fixed income manager if you put a flattener on. that is that we are seeing in the markets. joe: doesn't get to a point as long as the curve is flattening where people are going to have to start reassessing where the can go or the itself reassess its own trajectory and say maybe

we cannot hike as much as we would have been inclined to give an economic conditions? cameron: i suppose that is like asking if you put too many people in a bus to mike the driver start the engine and make it go? if the fed work to guide market expectations for the recycle higher, the market would certainly price that. when we have now is a great deal of uncertainty over the next year. yes, we have jay powell coming in. we think we know what he believes, but we are not totally sure until he actually assumes the seat. we have a lot of vacancies on the federal reserve board the need to be filled. we do not know who is going to be voting. for policy next year, how can we adequately price that? in thehe history of the postcrisis era, the default is you do not know the price, you tend to price nothing or relatively little. that is what the market is doing. hike, saying, we will

here is a dot plot, they are trying to do that, aren't they? i understand what you are saying. cameron: beginning of 2016, they said they were going to hike a number of times. they sat on their hands all year and do december -- year until december. just because they say they will do it does not mean they will. they said that they would do three, but markets do not like uncertainty. that is a particular amount of uncertainty for next year. julia: reconciliation of that, meet in the middle to undo some of the flattening we are seeing. cameron: yes, absolutely. i run a little model on the 10 year yield. by my reckoning, it is 15 basis points too low. if that would be reconciled come be have the curve up --

reconciled, you have the curve up. scarlet: we have some breaking enterprises, the faster growing part of the business. it has maintained its full-year eps outlook, full-year non-gap eps outlook. as for the fourth quarter that just ended, adjusted earnings per share of $.31 beating the consensus by three pennies. revenue also coming in cheyenne estimates. -- shy of estimates. antonia will be succeeding. meg whitman will be succeeded by antonio neri as the company beat on the bottom line but this is on the full-year outlook. we will continue to dig through the headlines. julia: coming up, is the justice department playing politics?

randall stephenson telling u.s. regulators, we will see you in court. more on the at&t-time warner merger right after this. from new york, this is bloomberg.

scarlet: just to reiterate of breaking news we told you about earlier, hp enterprises says that meg whitman is stepping down as ceo and antonio mary neri will be succeeding her. a couple quarters ago, there was speculation that meg whitman might go because she was one of the candidates to be considered as the over ceo -- uber ceo. she made it clear she was not going anywhere. julia: fast forward and i am looking at the comments she made around earnings.

a very special opportunity after six years of devoting my life here, and we have plenty of work to do. scarlet: now stepping down and handing the reins over to antonio neri as ceo. is does appear markets are surprised by this. you can see the stop taking a by 7% now even as the company beat on the bottom line and maintained the full-year profit outlook. in the meantime, let's bring it to mark crumpton for first word news this afternoon. mark: president today weighed in on alabama's upcoming senate election and told the people of the state not to support republican roy moore's democratic rival doug jones. the president said "we do not need a liberal person in the senate." meantime, roy moore's campaign staff today took aim at the media, democrats, and judge moore's accusers. yelling stuffple

and judge maura, asking these ridiculous questions. i am the chief political strategist, and my advice is every time the young something like that to you after the campaign, just think it is the jerry springer show. do not answer it. judge moore has answered all the questions. we believe judge more. we do not believe these women. it is that simple. mark: six women have accused roy moore of pursuing a romantic relationships when they were teenagers and he was an assistant district attorney in his 30's. two have accused him of a salt or molestation -- of assault or molestation. a lens of a member of the u.s. house of are presented as has acknowledged settling a sexual harassment case against him. he said his office acted to avoid retracted litigation. he had been accused by a former house employee who said she was fired after she rejected his "sexual advances."

buzzfeeds says the complaint filed in 2014 resulted in a settlement of $27,000. former trump campaign official paul manafort and rick gates will be allowed to travel for the thanksgiving holiday. the washington, d.c., judge today granted scratc separate requests from the men provided they tell authorities when and where they are going in that they abstain from alcohol. they have been under house arrest since late october when they were indicted for money laundering. president trump used his pardon power to keep a pair of turkey from becoming thanks giving dinner. he continued the annual presidential tradition during an event at the white house rose garden. the active leniency means 47 pound drumstick and 36 pound wishbone will get to spend that lives on a farm. the first lady and first son joined the president for the ceremony. global news 24 hours a day powered by more than 2700

journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: "what'd you miss?" hpe shares are troubling and after hour trades after the company said effective february 1, so that is a little over two months from now, we'll see meg whitman, the current ceo, step down and be replaced by antonio neri. she is stepping down and has . she joined hp into thousand 11. not long ago, she was reaffirming her commitment to the company. julia: we had question marks over whether she would be the ceo of uber. she said, i have been here six years and we still have work to do. a lot of questions popping into my mind here. fortunately, we are joined by bloomberg businessweek editor-in-chief megan murphy. not only questions about what happened around the suggestion that perhaps she was going to go to uber and the clarity upon

which she gave information to hewlett-packard enterprises, but also political ambitions in the future, too. megan: i am interested to see the share price reaction and such a deep tumble. it is a short window from now to february 1, 2018. look, you know, meg whitman has presided over the split. i am sure our viewers are familiar with it. she is a former failed republican candidate. uber, we should talk about that. there were a lot of questions surrounding the process. she did not tell the whole truth about how involved she was. they came to her late in the process. did seem like she would have taken the job, that she was very interested in it. with everything that has happened since, we forget about how much storm there was over uber when travis left and the

hubbub over the harassment in that company, but it is interesting to see what prompted this at this time and with the short window and which is moving to next. joe: in the realm of politics, a certainly plausible path for her, is there something for her in the political landscape where she can fit? megan: i don't see a spot for her in california for sure. as we know, she lost in a pretty brutal run in california for governor where she spent a tremendous amount of her own money. she is also the former chief executive of ebay, where she first came to a tremendous amount of prominence and really taking that auction startup that we used to call in the old days and billing it's what it is. she is a revered businessperson. she is someone who has always expressed interest in having a big public life and being that kind of public figure. it has not worked out for her.

there is no room for her in california right now. i can i see her on a national stage. especially we should point out for this moment in time we see populist politics and people in that personality that that is her strength. septembereadline from that meg whitman will not be the uber ceo, but she can be the first in the president. i wanted to circle back actually to just what we were talking about as far as uber is concerned and some of the questions raised at the time over whether she will relish the opportunity where the decision-making happen and where she wants to remain. you think that undermines the rest of the board and perhaps investor's confidence of her at hewlett-packard? even having these conversations suggests your eyes are looking at -- megan: you have to member what -- youortunity over was have to remember what an

extraordinary opportunity uber was. a cultural problem among women. that is something that meg whitman as we have said and discussed wants to be someone who leaves a public mark, who has always coupled her corporate life with a sense of civic duty as well, and what better fit for someone in that circumstance than to think i can rebuild and be the one to take this company over? i agree with you it would have been something that were considered, absolutely, but with or not it was an opportunity she felt she could not bypass is different. scarlet: you wonder if perhaps there were signs this was imminent because she stepped down from the board of hewlett-packard hpq writer of speculation that he was going to take over as the uber ceo. she split up hp into two parts. her mission was completed. that was something that was very gutwrenching. she made that move. she brought stability to the company. she accomplished what she wanted to do. megan: it is a hugely important

point for people who do not know what role the company plays in the valley. it was the real springboard of that culture. innovation was celebrated. people, experimental, what they did during the day was not viewed as a job but almost a calling at hp and how the company has evolved and splitting the business into enterprise and business and the computer and hardware side of the business was the fundamental. how those two companies will perform now is a different question. but i am interested to see the amount of pullback we are seeing. obviously her time was not infinite. we will see if this is just an immediate reaction. we see some pullback. her successor is the current president. scarlet: there is continuity here. megan: exactly, there should be some continuity here. julia: the change over, the handover in such a short period. she had been thinking for this long about the prospect of

perhaps the biggest chunk of the work i want to do here and what i want to achieve has already been done, but leave now early february. to say back in september i have been here six years but my work is not done and we have plenty more to do. megan: interestingmegan: how many people say the work is not done before they leave. [laughter] joe, jump in here. joe: i am interested in the point you made about the historic role that hewlett-packard had in silicon valley. for years and years of this legendary fountain of innovation. i don't get it may looking at silicon valley now or looking at hewlett-packard now for the first time would be surprised to learn that it was actually that important if you did not know the history. what do you think that says about silicon valley and the speed with which these companies turnover? megan: that is such a great point in terms of you don't even really think about them in the

top 10 innovators now if you uber.at google or uvb as someone who started as a lawyer in the first.com movement, it was the hologram for so many engineers, for people who came up, who saw it as the bedrock of corporate values that silicon valley used to stand for and have been disrupted in recent years like many other industries, but it was always seen as a special place, frankly. peopleme, i think newer will not realize what a legacy connection it has from the 1960's but it was really a true pioneer. scarlet: once again, we are looking at hpe shares down in after-hours trading on this announcement that meg whitman is stepping down effective every 1, 2018, and antonio -- february 1,

2018, antonio neri will be taking over. we want to continue our conversation and bring in cory johnson, bloomberg editor at large. both guests are in san francisco. this is a surprise. what do you make of it? cory: well, look, this business has been really struggling. it has been shrieking and shrinking and shrinking. when meg whitman took over a three, there was hope she could bring it back to the glory days. this is such an important company in history of silicon valley, but warren buffett says the reputation of the manager will ultimately match the repetition of the business and the repetition of the business the always succeed -- reputation of the business will always succeed. she tried to split it into high-growth software and slow growth bc business. spent billions in acquisition, and it just is not working.

the business is shrinking, getting smaller and smaller. she has not been able to turn that turned around despite using the strength of the balance sheet and reorganizing the businesses. the one-time restructuring charges for this company are over $1 million, over $10 million a week right now. alone.llion this quarter they pay restructuring charges every year going back to 2001. one-time restructurings all the way back to 2001. long before meg whitman was on the scene. this is a struggling business. she has not been able to turn that around. when we look at what is going on here, not so much that she is getting pushed out, but she has not delivered the results she hopes to for hewlett-packard and hewlett-packard enterprises. joe: you have to love even coming one-time costs year after year. i am looking at the numbers seeing q1 adjusted eps between 20 and $.24 will below the estimate of 2710. what is it that is not working, strategy wise? why can they not get any traction? >> look, the crowd has taken

over the market, and they are in the wrong place at the wrong time with the wrong product. if you look at what the business is, part of the services businesses and software business and what remains is a segment. unfortunately, the cloud companies which are growing and buying storagely computer and networking are not buying it from hpe so if you dive through the numbers here, they proudly claim that topline grew 5%, but if you look through that, the enterprise group which contains all of the products was actually flat year on year for q4 and the remainder of the businesses, which is effectively the leasing arm for their hardware, that grew. grow sales through leasing when you are a technology hardware company. right.ory set it

this is a company that continuously's challenge from a topline perspective. of paintedboth kind ofroad broad picture something that can deal with first leadership and a fresh perspective.to this have anything to do with what we saw a couple want to go? we talked about whether or not the light of the discussions that took place and perhaps were not clear in the beginning, one could question meg's commitment to the business going forward. cory: i expected she was well engaged in this company. she wanted it to be a success. there is terrific growth in the world of technology. there are lots of servers and lots of route is being purchased in the world right now. the results at hpe are just showing how much difficulty these guys are having getting the right products to the customers that want them. we see growth that microsoft and

the cloud and google and crazy growth equities like amazon web services, but even when hp has had success with cloud service providers, they are all devices that may have had more functionality than those guys wanted, but they were willing to take process to push this stuff out the door or lease the stuff. that cannot last for this company. have had the wrong products in terms of the market wanted some thing else. that is something meg whitman has not been able to change. anand: it goes to the point of relevance. when you have a mousetrap that is relevant to the cloud, it will sell. that is an example of a legacy i.t. hardware company that has found a mousetrap that can work with the club. you have to have a relative product for that for to go segment. this is not the corporate i.t. of yore and not a fortune 500 company buying. julia: very good point. great to get you on.

talking about meg whitman leaving hp as ceo. ♪ retail.

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mark: on mark crumpton with first word news. cbs said today they fire charlie rose who cohosted them morning show since 2011 after eight women told the washington post he made unwanted sexual advances towards them. secondly, pbs ended its partnership with rose, who broadcasted his long-running interview show. bloomberg terminated the contract to rebroadcast that show. he apologized for what he called his inappropriate behavior. as expected, the united states today announced new sanctions on north korea. it is the latest move made to isolate kim jong-un.

the penalties also affect shipping and transportation companies that have engaged in large-scale trade with north korea. after ae are dead suicide bombing at a mosque in northeastern nigeria. a spokesperson said a teenage male strapped with explosives entered a mosques in a town as people gathered at don for prayers. boko haram islamist militants are suspected in the attack but police declined to comment on who might be responsible. secretary saysit "the brexit talks have been tough but that good progress has been made." you told a conference in london there is still some unfinished business. however, it isi becoming clear that we will talk about our future relationship. it cannot be addressed if we cannot take into account the shape of our future.

the financial segment depends on it. mark: davis added coding both sides have positions to defend and aims they are trying to achieve and that nothing is agreed until everything is a great. -- agreed. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: let's get a recap of today's market action. we did not get to 2600. for the close, you will bit shy of that 2600 mark for the s&p 500. the big move in after hours trading is from hewlett-packard's enterpris ent. meg whitman, the ceo, stepping down on february 1, succeeded by the current president, antonio neri. clearly a surprise to investors. you can see the stock responding off by more than 7%. julia: joe cannot respond to you because he is on the phone

canceling the things giving turkey. joe: i am still optimistic. we have one more shot at it. we have one more shot. scarlet: looking for a little change, but a slight tick higher. julia: going to check back with you just to make surejulia:. moving on, "what'd you miss?" people are discovering loopholes in the house republicans tax bill. some key ways to avoid taxes on their earnings. debate on taxes on sold assets but appreciated before their inheritance. are they intentional? let's bring in zachary. great to have you on the show. break it down into all the individual pieces. let's start with the estate tax. talk about a potential changes being talked about in the house bill. >> sure. the house bill raises the exemption so fewer people will pay the estate tax. eventually in 2025, it will go away completely.

normally when you see that come you would expect to have at the same time congress change the rules for the step up basis. inically if you're heirs here it assets that appreciated, do they have to pay income tax on the appreciation that happened before the inherited it? when congress last revealed in 2010, they changed the step up in basis so you cannot get around income taxes that way. in the house bill, there is no change so it is possible that for the very wealthiest families that have multi generational wealth, the future generations can avoid any kind of income tax or stat estate taxation. julia: accident or deliberate? thatry: given the speed this bill has wound through the house and is now moving to the senate, it is possible a lot of these things are genuinely oversights. republicansw peopl

wanted to get rid of the estate tax. maybe by not realizing getting rid of it without causing this other thing, you are creating this home loophole that was not there before. joe: the existence of the sloppy loopholes like this spin to the inherent complexity of writing a new tax bill? is it a case that every tax bill throughout history that will ever have will end up having some of this stuff that accountants are really good at spotting? zachary: you are totally right there, joe. every major tax reform is going to have loopholes that sometimes take years to even be discovered , but the same time, given the speed, if you talk to people that worked on the 1986 tax reform, the last big one that happened, that took about three years from start to finish. this one is moving at a lightning pace so people who worked on tax reform back in the 1980's are saying the chances for these things being missed is higher given the speed. julia: a leaky bucket.

scarlet: the tax code is one huge leaky bucket. let's talk about the leaky bucket because right now people can file as individuals. of course, there is an argument against that because you punish small business owners. they want to bring that back down to a level that is at least comparable to a corporate tax rate. that creates a whole lot of new problems as well. talk about some of those. zachary: this is kind of one of the biggest structural changes in the tax code that they are talking about. the complexity it introduces to everything is just staggering because you had a system that you really fundamentally changing and are creating this new category. one of the questions that smart tax lawyers are asking is, for some people, that 25% rate looks good, better than what certain kinds of incomes are taxed at now so how can i be read about ere?ing more income in thr what i mentioned in my story is

how a hedge fund investor, a passive investor, how they might be able to actually qualify for that pass through rate, which was intended for real businesses and small businesses. that is how it was touted. a stake in a billion-dollar hedge fund. depending on how they do it and how the final law is written might qualify. julia: these guys are advising the government if you want to close these kinds of loopholes. scarlet: there is a big rush to get things done. meyer, thank you so much for digging through the different proposals by the senate and house and looking for loopholes. speaking of loopholes, home buyers are looking into ways to avoid the mortgage interested action on second homes so what does this mean for the million-dollar mansions in the hamptons? bring in jonathan miller. this is a statistically of looking at it, but good news if you are a renter a not so much if you are a homeowner in the hamptons. do i have that right?

jonathan: it seems like the rules if they take a current form are favoring being a landlord over a homeowner because you lose that deduction. many of the large homes we read about, bloomberg selling record prices are second homes. so the mortgage interest deduction gets lost. even in other parts of the country that are not high-end housing market, many people take home equity loans out of their first their primary residence to buy a second home. that will no longer be good article as well. scarlet: what does this mean for the rental market? not just in the hamptons, but elsewhere. have a lot of people say let m turn my vacation home into something i can rent out. jonathan: i think, first of all, the issue right now is uncertainty. in other words, no one really knows which end is up yet because the final form is not taken shape. one of the thoughts are turning your existing property into an

investment property instead of a vacation home. create an llc, rent it, right use the right off to the llc as opposed to a second home to replace the deduction you are losing. theink maybe you will have actual property owner using their vacation homes less. that has maybe some ramifications for sales activity in terms of people maybe not wanting to go through this machination. they want to go whatever they want to go. joe: jonathan, do you see the real estate people that you talk with and work with on a daily basis making moves right now in some manner to get ahead of this potential tax policy chang? jonathan: not yet. there is a lot of scurrying because of the uncertainty. we have seen a number of high-end housing markets, a lot

of activity shifting to the fourth quarter where people are sort of playing it close and seeing whether they can push their closing over the first of the year or keep the before new year's depending on what next year's tax policy looks like. that is not the only stirring we are seeing at the moment. it is a little too soon. julia: for this tax overhaul, it is supposed to be about helping the middle class. talk to me about the impact on the different segments of the market because my understanding is the higher up you get, and i am talking big money, you have a high prevalence of cash buyers. this is immaterial in a sense because they do not worry about the deduction. how present our second homes for the middle class in particular? what impact will this have as you get lower down in the middle class for those kinds of people on the property ladder? jonathan: the lower down you go, the more important the deduction is.

i think we can vary will see at least in modest priced housing markets where you have maybe a nearby second-home market, you can see less activity ultimately, which is then softens housing prices in those markets. julia: the good news is you have the doubling of the standard deduction. how important is that? jonathan: but i think as you move lower in the demographic price strata, people are filling out the standard tax form instead of taking deductions. scarlet: yes. speaking of the opposite of middle-class, the people who are plenty, one person sold his greenwich mansion finally. an a bedroom mansion for $25 million. 21% less than the original price. there is the property. beautiful, obviously. julia: how much less? scarlet: 21% less than the original price. this was the biggest sale of the year i think for that area. jonathan: the third seal over $20 million.

what is interesting about all three sales in greenwich this year, roughly the real estate taxes were as high as $175,000 a year. with the tax ruling that is coming through the pipeline, there is a 10,000 all caps on real estate taxes -- $10,000 cap on real estate taxes. --y now have $106,000 more $165,000 more. scarlet: wow. obviously, drunken miller is out a far end of the distribution, but is the lesson fundamentally you can move a house, you just have to move the price? jonathan: that is the message and one of the reasons why the high-end markets are soft in some of these areas. homeowners are pricing based on some other market 10 years ago and not current conditions.

what we are seeing is the demand is there but not at data pricing. correct,ng has to be and that applies to everyone on the price spectrum, especially an even more at the high end like that kind of number. formillion is a big number 99.9% of the country, but when you have a lot of listings competing with you at that price range, it's got to be at the right price. julia: brilliant to get your insight.jonathan miller , thank you for joining us. we will wait to see what happens with the actual tax. coming up, the fcc chair proposes rolling back net neutrality rules. why this is a victory to at&t and comcast, and what it will mean for consumers. from new york, this is bloomberg. ♪

joe: "what'd you miss?" more rollbacks of obama era policy. fcc chairman announced his plan to overturn net neutrality rules, calling the measure "imposed heavy handed utility style regulations." so what does this mean for broadband companies and consumers?i am joined here by matt, government litigation in a list for bloomberg intelligence. thank you very much for joining us. this net neutrality discussion gets very polarized, and the vision people have when they hear the net neutrality, the rules are going to be changed, that suddenly when they tried to turn on netflix, is going to be really slow or whatever, practically, what would we

expect to see as ramifications from the sec rolling back these rules? >> as a practical matter, i do not think in the short term you will see changes. in the longer term, what you have the possibility to see is changes in how internet service providers operate. currently, there are three rules whether it requires isps from blocking traffic and doing deals to prioritize traffic. this fcc is talking about wiping away all those rules. the isps don't want to block traffic, but this would allow them to do that if they wanted to in the long-term. joe: what specifically would we expect to see the isps do that they cannot do right now? as soon as you said it is unlikely they will block anything. unlikely they will make it prohibitively expensive in the short-term. is there anything you would expect to see it is medium or short-term policy change wise? matthew: we saw that in the past

year when isps started going to what they call zero rating where if you access the isps content, it will not count against your data plan, but if you go to someone else's content, it does. the tom wheeler s.e.c., the obama fcc was concerned about that. that is going against the neutrality software we are trying to establish. what you see first is gradual moons like that that subtly give an advantage to the isp's on contents and maybe more aggressive things down the road. scarlet: is it simple to say this rollback is a win for at&t, verizon, for the pipe owners, distributors, and it is a loss for facebook, netflix, the content providers? or is that too simplistic? matthew: no, i think that is right because what the fcc did was it took broadband service, a profitable service fo

,hich was largely unregulated regulators could not get at it, and it shifted it and put it in the heart of the communications act where the fcc could do almost anything. you could address what is reasonable about how the isp is providing service. that was a great concern to companies like at&t, comcast, charter because what is next? if you will relegat regulate th, will you'd's change what they lle charging for traffic -- wi you change what they are charging for traffic? it back outside the reach of regulators. on the other hand for facebook, netflix, the companies that have to rid on the pipese, there is risk. the ability to have the regulator making sure the isp does not block the content on the pipe, that is not there anymore. we are left to a much more limited oversight from the government. scarlet: so that it in more urgent for time warner to be

purchased by at&t the to find a home in a company like at&tn? matthew: potentially. -- anps see it interest interest in getting access to that content. what wiping away these rules lets them do is basically favor it if they choose to. is underat was said the proposal, the federal government will stop micromanaging the internet. basically going to assume a degree of transparency from the big isps here. is that fair? is it right that they assume that level of transparency? matthew: i don't know if it is right to assume the level of transparency, but what they are basically shifting to hear is a regime that lets the isps build out these expensive networks without the threat of this regulation hanging over their head.

what the isps have said is, we don't want to block traffic. we don't want to be against net neutrality. let us tell you our practices. we will be transparent about them. if you have a problem with that, there can be political pressure and other checks, but we right now have no interest in moving so weto block traffic should not be subject to this rest of regulatio. joe: in the statement, he characterized the regulation as utility like. a lot of people say it should be utility like because there is not a lot of competition from a consumer perspective, and there is a part that comes into your house without much choice. are these utilities on the mentally, or is there competition such that if one of these companies were to start behaving badly in an anti-consumer way, the consumers would have the choice to go with the more from the company? matthew: i think it depends on who you ask because if you go in a lot of areas of the country, i think people would tell you that at least with respect to wired

service, they will have a hard time switching from their cable operator if they don't like the practice that the company is engaging in. that was one of the things that drove the 2015 net neutrality order that gave the fcc this oversight over broadband services. the concern that, can consumers really switch if they want to? get a life cases, the democrats feel strongly that they could not. julia: great to chat with you. met joining us from washington with joe. rollbacktions of the -- more implications of the rollback. our guest will join us at 5:00 p.m. eastern on "bloomberg technology." don't miss that interview.this is bloomberg . ♪

scarlet: is time for the bloomberg business flash.a look at some of the biggest business stories in the news right now. jonathan are taking a six-month sabbatical after confessing to unwanted gestures with coworkers. the cofounder of the pixar animation studios apologized to employees saying "everyone has the right to set their own boundaries and have been respected."he is the creative blockbustersdisney "cars.""toy story" and the federal trade commission is investigating trip advisor's more travelers said the their post about assault were blocked. from advisor blocked a woman's warning about a hidden bathroom camera in a maryland restaurant because it did not need company guidelines -- meet committee guidelines. that ithat is your business flah

headlines. joe: coming up, what you need to know for tomorrow. this is bloomberg. ♪

scarlet: "what'd you miss?" gains in u.s. stocks, including the s&p 500 touching 2600 and out closing above that level. julia: thanksgiving depends on

it. scarlet: eventually joe things t will be ruined. fomc minutes from the recent monetary policy meeting comes out at 2:00 p.m. eastern tomorrow. just a philip hammond makes his budget statement in parliament announcing the forecast for growth and deficit as well as tax and spending measures. scarlet: that is all for "what'd you miss?" julia: "bloomberg technology" hiis next. joe: have a great evening.this is bloomberg . ♪

>> i'm in washington, anyone watching "bloomberg technology." -- and you are watching "bloomberg technology." the u.s. announcement sanctions on north korea in the

aims of isolating kim jong-un's regime. the penalties will impact shipping and transportation companies that have. engagedin large-scale trade with north korea engaged in large scale trade with north korea. grantedafort will be travel for thanksgiving provided they announced for they are going and abstain from alcohol. french counterterrorism police have arrested three people in connection with the january 2015 attacks in paris that left 12 people dead. a judicial officials said two men and a woman were taken into custody as part of an investigation into who supply weapons to the attackers. celebrations erupted in zimbabwe's capital following the resignation of president robert mugabe.