capital of israel. the council says the action violated international law. >> the united nations position is clear. jerusalem is a final status issue for which a comprehensive, lasting solution must be achieved through mutual agreements. eight states requested the emergency meeting. president trump also plans to move the u.s. embassy from tel aviv to jerusalem. meantime, thousands across turkey are denouncing president trump's decision to recognize israel capitol. thousands gathered around a mosque and marched, chanting slogans protesting the united states and israel. german chancellor angela govern thefusal to country without a stable

inviting criticism. while she is seeking a coalition with the social democratic party, immigration hard-liners say such an alliance may be too high a price for forewarn years -- for four more years of merkel's government. they are pushing instead for a minority government. there is an anticipated wave off departures following president trump's first year in office. powell is exiting on good terms with the president. she and mr. trump discussed her departure and are working on an arrangement for her to continue advising the administration on middle east policy. ,lobal 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. ♪ live fromlia: bloomberg world headquarters, in julia chatterley. scarlet: i'm scarlet fu. joe: and i'm joe weisenthal. julia: all we have to talk about is bitcoin. joe: but the question is "what'd you miss?" where is the wage growth? across the pond, theresa may managed to secure a late-night break the deal, but that does not mean it is smooth sailing. brexit deal, but that does

not mean it is smooth sailing. from the west bank to jakarta. "what'd you miss?" added 228conomy thousand jobs in november, more than expected. all of this before the fed's expected rate hike next wednesday. so, let's bring in deutsche bank's chief international economist torsten slok. sten, i know you slaughtered this is your number one risk. we have been waiting for this for so long. s as know you slotted thi your number one risk. we have been worried about inflation for a long time. the wolf has not arrived. we do think the most important

factor is the unemployment rate should be at 4.1%, which came out this morning, the same number as last month, but it has been coming down constantly for the last few years. that ultimately by the laws of economics will show up as wage inflation. we do feel confident that the fed is right we will see more inflation in 2018. joe: are you sure it is a law? could it be that we all thought it was a law? it could be, but when you think of demand and supply and supply is somewhat limited. we see tightening across the board. we are seeing the number of people on disability insurance is starting to come down. we see people getting pulled back into the labor markets. they are still dragging people into the labor market and that is holding wages down. therefore we do think that the law will -- [laughter]

scarlet: and that will test the new leadership. whether jerome powell will be as independent as janet yellen, maybe he will be politically driven. maybe his vice chair will be politically driven. fedten: always when new leadership comes in, we have to make sure there is someone looking at incoming data and take that into the main account when they do something rather than all sorts of other things. with that backdrop, we think that powell will have to come in and say, i am fighting inflation ,boom. i will get that through to you that i am an inflation fighter. scarlet: the macho thing. julia: i know. non-gender specific in that case. joe: that is like when you arrive at the prison and the first thing you do is beat someone up. julia: exactly. thank you -- prison comparison.

let's talk about markets. market corrections, correction of some sort and credits. you have had those on the list? we have had a lot of money from the ecb and the boj that ultimately has found its way into the credit market. as feeling that you have is the demand for the u.s. and has started to wane and the money flows into the u.s., those credit spreads widen even if economic data is good. the feeling you have is credit markets are illiquid. then people will sell their most liquid assets. the difference between income and equities could be quite different. joe: we were talking before you came on about today's jobs report -- no one is calling and .sking questions everyone expected it to be boring. we could try really hard and pretend there is a story there.

it's just the same old. when i'm curious -- what are people asking you about? it seems like there is a little littlec volatility, so news, when the call, what are they most interested in? yes, it was like groundhog day. strong headline number, low wage growth. what people are trying to figure out our are there any hints that wages will be moving higher? the answer is the same story that has been there for a wild -- it should have pushed wages up a while ago and it just has not happened. joe: we were talking about the cuts in 2015, it was supposed to move higher -- torsten: there is some divergence, but the bottom line is, we are still waiting for that will to come, and we do think as the labor market continues to climb, it will ultimately shop is wage inflation. julia: a lot of things are tied to the shape of the yield curve.

the fact that we are getting -- we will end up seeing the backend rising to some degree. torsten: that's very important. the fed still uses the words gradual, cautious, we have to be slow, predictable. that is a fairly dovish message. but if you look at the chart, how many times they are going to raise rates, that is pretty hawkish. there is inconsistency with what they are saying with their words and what they are showing with their dots. what, inflation is low, so that is not going anywhere, but the fed will continue hiking rates because that is the right thing to do. scarlet: and we could continue to see a rise in u.s. income inequality which could lead to more dissatisfied voters and more populism. we have the midterm elections in

2018 as well. how much of a risk is that two markets? torsten slok --torsten: basically a very important route of populism is income inequality. you ask the question, does the tax package deal with that? do any policies deal with that? could be an issue that will come back in the terms of is populism getting worse? or is it getting better? the global income equality has been whitening out, not only the u.s., but also all european countries. -- the global income equality has been widening out. beenincome inequality has widening for an extended period. is stickingen slok with us. we will be discussing another list on your --b risk on your

listr, brexist. this is bloomberg. ♪

julia: theresa may got her breakthrough in the brexit talks, but now the hard part -- ironing out the trade relationship between the u.k. and the eu. as one of hisit 30 market risks for 2018. still with us, deutsche bank's torsten slok. talk to us. brexit is number 20 on your list here. it is a real worry and anytime you are in london, this comes up. the issue has been for quite

some time there's an enormous amount of things that need to be squared out before you get to the end of this process and the clock is ticking. there is still an enormous agenda left. julia: you also have the u.k. reversing the brexit decision as one of your risks. do all: because can you of this? the eu's regulating essentially everything and all direct shins of society. what -- directions of society. what color can you have on products? it is up being incredibly obligated to negotiate. julia: yes, it is a trade deal. they took seven years to do a trade deal with canada and they will try to do it with the u.k. in what -- average, trade deals take four years, so doing this in less than 12 months is quite heroic and we have less than a

year and we have not moved very far. joe: it really shows how good europe is a kicking the can. we saw this numerous times -- julia: they find a way. things for the comparison, joe. down at the bottom, the housing bubble bursting in canada or australia, the housing bubble bursting in norway or sweden, housing bubble bursting in china, china heard landing -- hard landing. icious, butubblel people have been warning about those for a long time. since i have been following this . is the fact those have not burst yet, has it dulled people to the risk? does it partially explain the complacency that people talk about these and the wolf never comes? countries have their own central banks and when you have your own central bank, they start to take into account

what the home prices are doing in norway and canada and sweden and they say, hey, wait a minute, if we have a crash, we will have significant bubbles, so maybe we, as the central bank, should prevent that from happening. that is why these countries with interest rates that are "too ods, they haveperi these exchange rates. you will probably see the exchange rates go down and stay lower for longer simply to prevent those fairly vulnerable and fragile situations from becoming a real problem. julia: back themselves into a corner. torsten: that is exactly why williams and evans have opened the discussion of whether you should be inflation targeting the federal reserve or the ecb or the bank of canada or sweden, or should you take into account that the stock prices are up here or here? given that inflation has not

moved up to much end of those countries, and not worry so much about inflation. scarlet: is not so much the u.s. we are fixated on, but germany. torsten: the german economy -- the highest level in 48 years, close to overheating. , and thatere is risk is why it is at the top of our worries. it could be a risk that markets are completely unprepared for. will have a the ecb difficult situation if there's going to be a political election in places like italy. they have to fold that into the equation. torsten: absolutely. the risk is categorized -- there are the organic worries about where will inflation come from and the ecb, how will they manage that? all prepared for interest rates? what are the political issues going into that calculation? political front.

we have a number of things that are fairly difficult to quantify, but nevertheless very important in 2018. phenomena now, the potential bitcoin crash. i love her you tie that to a confidence impact on consumers. i love howthat -- you tie that to a confidence impact on consumers. talk about that. torsten: the risk you have -- of course, there is the loop, but should you worried about systemic risks? bitcoin is so of much higher than almost anything else. vix or what is going on with credit vol. it is so low compared to what is going on with the coin. if it starts to realize more and more multiples of the downside, then that will ripple elsewhere, particularly in retail confidence. interesting. we have a question from one of

our viewers -- thank you so much for that. what is the risk of inflation in the u.s. or europe? torsten: that's a great question. think of how we measure inflation. inflation is measured in the u.s. as core cpe. why would you use that measure? cpi is much closer to true. we have somewhat randomly chosen a measure in the u.s., so we are all walking around saying ,oh, inflation is not a problem. but if they had taken a different measure, we would be 2,2 and in some cases, above , oh, inflation is here. it differs quite substantially. not only the u.s. or europe, that countries mentioned earlier -- canada, sweden, they have cherry met -- cherry picked options, and that is of being

quite important for the narrative. i guess the difference from central banks is, they are keeping consistent all the way through. torsten: that is exactly why if you change the inflation target is incredibly difficult. so therefore the fact that we locked it down -- it is something almost impossible to it out of. julia: which is target as it prices. saidet: it's like you earlier, backing yourself and your corner. deutsche bank chief economist torsten slok. thank you. let's get you to breaking news across the terminal. activist investor bill hack -- bill ackman is likely to face on our in insider trading claims. that goes to a jury trial next month.

a trial on illegal insider according to david carter. the muslimng up, world rallying in protest against president trump's decision to recognize choosers -- jerusalem as israel for. from new york, this is bloomberg. ♪

julia: "what'd you miss?" protesters took to the streets to jakarta tok protest president probably decision to recognize jerusalem --israel fro capital israel's capitol. let's get to bill ross, former w. bushor under george

and barack obama. thank you for joining us. by asking whether you believe this is a strategic mistake by the president at this moment? >> i don't know if it is a strategic mistake. what he has done in fact is to recognize what is reality. the real question is the timing, precisely because his administration is preparing a plan for israel e-palestinian peace. is the ask whether this right thing to do at the moment. what you want to do with the palestinians and the arab state, what you're trying to do is expand their political space to make cap decisions, not shrink it. i'm afraid taking this decision now without context, without previewing it more than a day in advance, without preparing the ground for it, particularly with king abdulla from jordan, king salman of saudi arabia, without putting them in the position

where they could offer their own suggestions about how this might onframed so they are less the spot or the defensive, it is hard to see how it contributes to what the administration hopes to do with israel e-palestinian peace. scarlet: what is the argument the administration would make for why doing this now would help the peace process, and would it be credible to the other players involved? amb. ross: i think there aretwo arguments they would make. one is this is reality and the sooner that everyone adjust to it, the better. to it, the better. i think they probably fear that if they did this later on, maybe the palestinians would walk away from the table. the problem i have with that argument is if you put this in the context of a plan, then at

least the palestinians and the arabs have something to point to that is also positive. right now, there is nothing they can point to that is positive. when the president made his statement, he had elements in the statement that could have helped if there had been more than one day's notice. he made it very clear this is not designed to free judge the negotiations for status issues, jerusalem.xplicitly he was very clear the borders of where israeli sovereignty what extent are not defined now and must be resolved through negotiations. if that had been something that was, in essence, conditioned, if moore had been said by to taking the step, it would be difficult to misportray this. hezbollah, all of them are calling this a betrayal. they are calling for an uprising. this puts the palestinians, the jordanians on the offensive

because it makes it appear that they have conceded on one of the issues that is the most emotional of all concerning israel is an palestinians. julia: do you think the united states has excluded its off as a neutral negotiator in a piece process? how do you see it playing out? amb. ross: it is not new for the united states to be accused of not being an honest broker. the question is whether we are an effective broker. to be an effective broker, you have to deal with the concerns of both sides. right now, anything presented by get aministration would negative from the arabs because they are on the defensive. if we make it clear that nothing has been prejudged and make it clear that palestinian claims can be negotiated, then i suspect basically something can

be done and the u.s. will still play a role because the key is, ultimately -- ultimately -- scarlet: retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. [cheers and applause]

[bell ringing] julia: "what'd you miss?" up to the the the straight session. i'm julia chatterley. scarlet: i'm scarlet fu. i'm joe weisenthal. if you are tuning in live on twitter, we want to welcome you to our closing bell coverage every day at 4 p.m. eastern. atrlet: unemployment staying 4.1%, tepid wage growth. what do they call it -- a goldilocks report? report.oldilocks doing fine, nothing that would force the fed to hike too soon. look at when we individual names, a gets more interesting. there's a couple different moving parts -- there always is.

we have news from over the last 12 minutes. apple said to be close to buying shazam. .his is according to techcrunch apple has steadily lost ground throughout the trading day and -- closed near its lows of the session. johnny ives, one of the most well-known members of the crew has retake inbs management of the product design teams at apple. we will be discussing that later on with mark gurman. this is a bloomberg scoop. drugmaker,sraeli considering cutting 2000 jobs as considers reducing expenses. and star not international after -- steinhoff international, there was an accounting scandal that threatened the future of

this stock. the of course, looking at bond market, the big action was the u.s. jobs report. solid, but not so much wage growth people are worried about hikingceleration in the cycle. muted reaction in treasuries. the 10-year yield dipped earlier in the session in the immediate wake of the report, but i guess that risk on five to the overall market, as scarlet was discussing, did look long. so, a hair of steepening a couple days on that. u.s. dollar, slight gains for the dollar index. i am showing you the number. just over 8.5%. dayave the fifth straight of gains. 25 basis points for next week,

too, just keeping an eye on the level of the dollar there rather than anything else. a quick look, despite the brexit deal -- the hard work is yet to come -- but we have to get excited, it only took canada and the eu seven years to sign a trade deal. seven months for the u.k. to do it, i know we can. i'm biased. the dollar in brazil as well, showing the year to date on that one. relatively unchanged. it is likely to peek at3.50 rebounding at the end of the year. it is election year, with a pick up volatility and currency weakness here it if you're looking at that one, just pointing out the forecast of there for the next 12 months. joe: and finally on commodities

-- oil up only 1%. gold, you know, a little bit lower, but drifting further and further away -- actually the worst week for gold since may. not very pretty there. 9.80 an ounce. those are the market minutes. scarlet: here to talk about what is to come in 2018, katie koch. great to see you, katie. we got the data today in the jobs report that showed pretty much more of the same. wage growth is still ready tepid. if you go with the same themes, equities remain the preferred asset class. is there still that alternative -- that mindset there is no alternative? atie: i do think that growth

trajectory is going to continue, but we also say it will be more moderate in 2018 than in 2017. aguest that backdrop, we have couple of occasions. we prefer emerging-market assets overdeveloped market assets. that is true of the credit and the equity market. we do think that credit and central-bank policy will matter more this year. when was more about shrinking balance sheets. obviously, there were a few hikes. expectar, in december we the hike. we expect three more hikes. we are more hawkish than others on the street. u.s. bonds may be one of the more overvalued assets. we are cautious around that. a third point finally -- looking at equities, we do think that equities are very strong. if you address where we are in the economic constructive.very

we would emerge investors to move beyond borders, to get exposure beyond the u.s. joe: we have a chart here showing emerging sing -- emerging markets. the white line, em, solidly outperforming the msci world index. tech, a little bit of underperformance. back to bed, em selling off. some in dev year stuff that does not change the fundamental story? atie: as people rebalance portfolios, you will see a little noise. coming into this year, i told claims to be positioned, and we think it will continue to outperform. with emerging-market equities, when you look out to 2018, you

have the fed with the 20% count to the overall market. we think it is a very important thing for people to have in their portfolios. we want to emphasize again, we really doing courage clients to look outside their businesses -- we really do you encourage clients look outside their businesses. small and mid-cap companies that are much more geared to the secular growth story. scarlet: what is it usually? is 40% to 45% it invested in benchmark, and this year we are at 50%. scarlet: i want to go back to technology and this can be global tech as well. what is going to drive the next leg? innovation or consolidation? the major tech platforms continue to perform really well. we feel very good about the earnings projections of those

companies going forward and i think that will attract buyers to be market. and then, obviously saying more of the innovation come through and improving some of the smaller, mid-cap part of the market will be extremely constructive. technology has its tentacles across all sectors of the u.s. market. that is important to keep in mind. example, autos is an area we are focused on. we are excited about the future of autonomous, electric vehicles. a quick example -- we own a company that is a japanese company -- when people think electric, autonomous vehicles, they think u.s. companies. i will not name them. the very front end companies that we all know to be very expensive. we are exporting this to the japanese market and they

basically make small motors. and as the cars become more and more autonomously will need more and more of the small motors and that will be a significant discount to the front end of autonomous vehicles. have darted around the world. japan, you are very optimistic about japan going forward. looking at the topics -- i think between five-year high is a level we have not seen for several decades. investment is shrinking. what is it? buyeople just not want to japan because the rep in so many forestalls? very goodt is a story. we are more optimistic about japan that we have been in several decades, but it is hard to get people to throw win with us on the concept. what we look for -- in japan, it is a 20 cent discounts -- a 20%

discount from the u.s. market, so the valuations are attractive . you've got a 20% discount from the u.s. market, but great growth story. the electric vehicles we talked about, but also robotics, automation and factories. they are the leaders in this. so, automation of factories is going to be very important. they are at the forefront of that. the final thing people can think about his great exposure to the emerging markets consumer. is selling premium products to consumers all across asia. good valuation, great sector growth stories. the final thing i will say, and but it'sds boring, actually very exciting -- the corporate governance revolution. they are paying management teams for performance, independent boards of directors. and this is key to why profits and japan have doubled and we

think it has several points to go. julia: and what we are seeing, if you think back to 1996, 1997, it was the consumption tax that ended qe early, i believe? so that would be the critical difference for me as an investor looking at this. katie: you need to be sure there will be in accommodative policy backdrop, and my colleagues are surely that would be the case. is stickingie koch with us. we have talked japan, but we will find out more about how she has used japan with the eight reelection of shinzo abe's party. this is bloomberg. ♪

with in mark crumpton

first word news. arizona republican congressman trent franks has announced he will resign effective immediately after his wife was admitted to a hospital. he revealed that he discussed surrogate motherhood with two female staffers. arizona officials are trying to figure out when to hold a special election to pick a midterm replacement for the congressman. a plants are considering to limit, but not abandon the influence of superdelegates in the next primaries. they would have to tie their votes to the outcome of primaries and caucuses. the compromise after allegations from supporters of vermont senator bernie sanders during the 2016 primaries that the system was rigged. special counsel robert mueller

has gathered a trove of bank records as part of the investigation into paul manafort and associate rick gates. at least 2000 documents have been listed as "hot." they include bank accounts in cyprus, st. vincent, and the grenadines, and there were documents from metaphorical tax preparers. british labour party leader jeremy corbyn says more clarity is needed with the announced brexit talks. he said that while progress may have been made, the referendum was in 2016, so agreements should have been reached a long time ago. is -- determination [indiscernible] the supply chain to britain, and

we want to maintain those jobs. no one in the referendum voted to lose their job. ight, there will be the crucial subject up written's relationship with the -- britain fell relationship with the bloc. i am mark crumpton. this is bloomberg. scarlet: "what'd you miss?" the changing landscape in corporate japan and its equities. ande koch is still with us goldman sachs is firm on -- bullish on japan. prime minister shinzo abe, what is he able to do now that he is reelected he was not able to do before? what changes in japan? katie: i think they laid out the most important policy goals.

what is critical about this mandate is they will be able to push harder on the reform agenda, and particularly corporate evidence, because we care about that. if there was some company that wanted to make those changes because leadership might change, they would realize there would continue to be focus on this and they would have to continue to improve corporate governance. companies havet improved corporate governance dramatically, but the other half of the index needs to do work and therein lies the opportunity. real or -- we are really focused in finding those companies that are in the early stage of improving governance, which will drive profitability for them. talk about boj because it is the biggest owner of many of the companies through etf lying. buying. etf how do you rebut the argument

that is something to avoid? katie: i think the central bank will be a very deliberate owner , but i think the japanese would love to see more foreigners investing and we think it is a good time for foreigners to do that. that would help give them a little moral wiggle room on asset ownership. we do not see that as a major risk, but we would like to see more foreigners step in and get exposure to the many great companies in japan. julia: we would be remiss if we did not wrap up the conversation bringing it home to the united states. what do you see as far as tax reform, tax overhaul is concerned, especially for the small and midsize cap areas? youwhat opportunities are looking for? retail is an interesting one for you guys. katie: we believe that the level -- an individual

and individual level, not all of the good news of tax reform has been priced in. will benefit small-cap companies in two ways. first of the corporate level, the tax rate of 25% versus over 30%. that will be a lift. at the individual level, if the middle class consumer gets a lessened tax burden, obviously that can be opposed to a boost to -- consumption. that would be point number one. at a small caps trade premium to large caps, the premium you have to pay has changed. there are so many interesting stories overlooked by the market because they are smaller in nature. we have a position in burlington -- relenting coats, they are an off-price retailer like t.j. maxx or ross. they have a couple good things

for them. they compete very well against amazon. they are one of the survivors in the retail space. sell cheaper sometimes. they also bring in experience, which i know because i have gone it -- treasurey hunting. we like a bargain, right? you can find great things, great brands, and they have terrific buyers who are turning the inventory quickly. it's a terrific business model. coming back to tax reform, if we get the tax reform you think we will get, that could give a 15% boost to profit. scarlet: and very quickly, malls , you're interested in malls? i have not heard anyone say that for a long time. we are marginally overweight the retail space and we do have exposure to some malls. we do get it. there are 1000 malls in the

u.s.. ls.com.eadmal have poorly located assets been offloaded. they have focused on good locations, properties, experiences, eight retailers that are coming into bricks and restaurants, and they are driving the traffic. you can be very selective of which management to get behind and assess to him, malls are oversold. is linked to e-commerce is up 20% and the retail space down 10%. we will be selective, but we think that we see some things the market doesn't. scarlet: great conversation. katie koch, goldman sachs, appreciate it. who holds all of the cards for tax reform and almost every other item on the gop agenda?

this is bloomberg. ♪

scarlet: "what'd you miss?" the main moderate who holds the keys to the gop agenda. ,he main priorities all depend more or less, on one senator -- susan collins. our national reporter is with us from capitol hill. explained to as the mechanism through which susan collins suddenly finds herself with a lot of leverage, because it's not just the tax thing. other bills are in the works right now that need to conform to her wishes. reporter: right.

the government is set to shut down on december 22. they delayed the shut down by two weeks. that's the vehicle by which a number of democrats and susan moderatesd republican want to implement the health care mitigation measures that would counteract some of the of repealing the individual mandate. that's a problem that collins and others want to mitigate. collins has asked for two pieces of legislation to relieve the impact of the individual mandate repeal and she wants that alongside her vote on tax legislation. that is the deal she believes she has struck. she believes she has struck that. it seems to have legs in the senate. it does not appear to be a deal to.e republicans feel bound speaker ryan has said he has not signed off on that and he was

not privy to these discussions. it is a big open question as to whether tax legislation can get or if theyh her vote will have to do it without her. we are talking about the alexander murray proposal, one of her conditions, that's deeply unpopular with conservatives in the house. what good does it do to get a verbal confirmation from mitch mcconnell when it comes to paul ryan who has never had a conversation with her. will she end up signing on the dotted line as far as this tax overhaul is concerned even if she does not get the promises she thinks she may have extracted in the short-term? yourter: the answer to first question is she does not have a lot of leverage in the house where it counts. house republicans are not interested in doing something simply because she wants to do that. as to the second question, that is the more interesting one.

what is really up in the air at this point is whether this is a hill she wants to die on, whether she will ultimately say, no, i will not vote on this piece of tax legislation or will she find her way to yes otherwise. are other things she has to force, such as the medical expense deduction and the accommodation for the local and state tax reduction. the question is if she is going to die on the sill. joe: they could afford to lose collins' vote. does this raise the stakes for that alabama race on tuesday? reporter: it absolutely does. a democratic victory would throw everything the democrats are trying to do into shambles. this is one of the reasons republicans are desperate to get this done before the end of the year, at least within 10 days of the election. important point.

from new york, this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ mark crumpton with first word news. president trump double down on his support for alabama senate nominee roy moore. the president tweeted to voters before they go to the polls that the last thing he needs in a a liberalnate is democrat who opposes his agenda. -- president trump doubled down. former minnesota governor tim pollen to says he is considering running for al franken's senate

seat -- former minnesota governor tim pawlenty. the former presidential candidate became a less -- the last republican to any statewide election in minnesota when he secured a second term in 2006. the u.s. ambassador to the united nations today addressed an emergency meeting of the security council. the session was called over the u.s. decision to recognize jerusalem as israel's capital. ambassador haley acknowledged not everyone agrees with the decision. >> to my palestinian brothers and sisters, i can tell you with complete confidence that the united states is deeply committed to achieving a peace agreement between the israelis and the palestinians. we have demonstrated that commitment over many years and with the investment of large quantities of financial resources and diplomatic energy. sadly, peace between the two been achieved, but

we will not give up. our hands remain extended to you. mark: president trump has approved an emergency declaration in california where wildfires have raged for most of the week. the declaration orders federal assistance and aid for federal and local response efforts. wildfires in southern california now stretch for a couple hundred north ofm 10 diego to los angeles. the biggest fire has burned almost 100 square miles in ventura county. -- wildfires in southern california stretch for a couple hundred miles from san diego to north of los angeles. i'm mark crumpton. this is bloomberg. scarlet: let's get a recap of today's market action. we joke around about how the jobs report was more of the same. the stock market reaction was also more of the same. s&p closing at record highs, light volume, reaction to a goldilocks jobs report.

now we want to move on to a bloomberg scoop. an executive credited with the look of many of apple's most popular products has me taken advantage of the product design team. eoe: how important is jony iv to apple? for people not necessarily familiar with the goings-on in the company? >> everyone knows who tim cook is, the ceo of one of the most important companies in the world, one of the most valuable ies in the world. is perhaps the second most valuable person. this is the guy who along with steve jobs conceptualized the ipod, the first imac which helps to save the company from bankruptcy, the apple watch, the ipad. he is back after taking two appleto focus more on the

headquarters, the spaceship-looking place. julia: why would you shift someone who is so pivotal to the ? sign of the headquarters why would you take him away when he has been so critical, particularly as you said, saving the company at one point? mark: that is a pointman of people miss when talking about him. as plenty of points if you read the tea leaves. widow a few years ago called him deeply tired. he also called himself deeply tired. it seemed he was getting bored with the day-to-day. then the management change happened a few years ago. expected was this? was this always the idea, or was there a thought that if he characterized himself as tired -- mark: given his own comments and steve jobs' window has comments,

there has been lots of speculation on the blogs and media and people talking in the apple world -- given his own comments and steve jobs' widow .lus comments hindsight is 20/20, and the campus is finished, so it makes sense that he is back. scarlet: like he has signed on for another five-year contract. according to techcrunch, apple is close to be purchasing shazam. mark: i love shazam. any time i am in a club or bar, i open it. i hope nobody sees me do it because it is sometimes a little embarrassing, but it tells you the name of the song. joe: not only do i do it, i sometimes go to the middle of the room and try to hold it to a speaker. : he's not embarrassed at all. chappell -- joe: apple is not a particularly inquisitive company.

what is the acquisition thinking? ? lia: why would they do this they already have an agreement with them, so why spend the money? mark: apple partnered with shazam a few years ago to integrated into siri, c can ask siri -- so you can ask what song is playing in the background, and it will tell you. they already implemented what they would have gotten out at shazam anyway through their partnership. now they bought it. it is not clear what that adds. scarlet: they want to monetize it, right? potentiale is huge for tapping this into apple music more closely now that they own the whole widget. ive,going back to jony what are the big projects you

would expect him to be working on? mark: definitely augmented reality glasses. they are really the vein of the technology world's existence because it is what every tech company wants to put out, but they are so hard to make at this point -- they are really the world'sthe technology existence. joe: is this like where everyone makes an mp3 player, jobs nails it? mark: i think so. apple is not planning to release a pair of glasses until 2020 at the earliest. they will not have the tech ready until 2019, so it is an open window. scarlet: what happened to an autonomous car and apple's involvement? mark: apple initially wanted to go after detroit and tesla. wasourse, jony ive involved, but they shifted a couple of years ago from the a

full-fledged car we would want to drive to building an underlying self-driving car system. that's more on the technology side in which jony ive is not involved. somethingthere completely different and revolutionary that he could come in and go, "i have been away, but i've got a great idea?" mark: management response abilities were shifted to other people, but now he will be more intertwined and he ever was before. it's good for the company and the customers. part of the company dna, his designs are paramount. : thank you for that. scarlet: coming up, black americans are gaining ground in the labor market on this job stay. we will look at what is driving that change and if it is sustainable. -- on this jobs day. this is bloomberg. ♪

scarlet: the u.s. economy added 200,000 jobs in november, signaling a robust jobs market, but our ongoing conversation in the workforce focuses on a different milestone -- black americans gaining ground in the labor market. the difference between the black and white employment to population ratio is now hovering around its never was levels going back all the way to 1975. joining us now to talk about what is behind this progress and white victory is so tenuous is a management and diversity reporter of bloomberg who cowrote the story. great to see you. we talked about the narrowing

white ande gap of black americans. how has that changed over time? what does it look like through the different economic cycles? jordan: right now, we are in a strong labor market and 58% of lack americans are working and 10 to 61% of white americans. there's just a three percentage point difference, so that is a very small gap, but we do not know if we will be able to sustain that because there's not enough tools in place to be able to keep that progress going. scarlet: historically, that has been the case. when you have downturns, that gap starts to widen once again. jordan: absolutely. black worker to see the phenomenon of last higher first fired. that happens when business cycles go down, recessions happen. in addition, if black workers are switching jobs often, research has shown they are not increasing wages with each job

or are facing more part-time jobs. scarlet: job mobility does not help black workers increase wages, and its different between men and women as well. jordan: we see that for black women, it does not really affect wages. no impact. for black men, there is an impact. on top of that, black men are making $.70 to the dollar of white workers. scarlet: the effect of that wage gap is also compounded over a workers lifetime, which puts them even more behind. when you have the white house and politicians saying the wage will improve, he is partially right. it does not actually solve the problem. it is a first step more than anything else. jordan: yes, it's always great to have a job, but one measure looking at how well the black community is fairing is the .acial wealth cap -- gap

if you want to see how well someone is going to do in life, you need to look at how much wealth ahab, and research shows white households have a times the amount of wealth as black households. emily: that capital acquisition is really effective. talk about this argument people make about focusing on education or where someone lives as a driver for helping to narrow that wage gap because there is a tendency to fixate on that. i know you worry about the san francisco fed doing research and finding that for blacks, there are additional factors not included. jordan: education is clearly important to getting a job and having those skills, but research shows there is actually this widening portion that is unexplainable, that points to area residents or contributing to black workers not being able to buildn their jobs and

their wealth. scarlet: you talk to a woman named kansas watson -- candace watson. talk about what allowed her to thrive and perhaps defy some of the arts. jordan: she grew up in the bronx and was born to a single mother, but the fortunes of her life and her mother's life started to change when her mother was able to get a job at a community center. not only did it provide a decent wage but it afforded affordable childcare. at night, her mother could go to school and was able to graduate from college. she said seeing her mother graduate from college inspired her to go. she went to college, got a bachelor's and a masters and is now turning more than her mother did when her mother was her age. scarlet: not just making jobs available to certain kinds of jobs with the infrastructure and allow the family to prosper as well. jordan: and having that example that you can succeed, so that is

why the data is so important now, seeing that the employment to population ratio is so small that it makes more opportunities to having those examples of lack workers in the workforce going on and hopefully helping to close that racial wealth that -- examples of black workers in the workforce. scarlet: thanks so much. julia: up next, we take a deep dive on those november jobs numbers. three must the charts coming up -- three must see charts coming up. this is bloomberg. ♪

the latest snapshot of

the american economy, boasting 220,000 jobs in november. boomers are back. talk to me. matt: yes, very exciting. for many years, we've and focused on the prime age employment to population ratio. we know of the problems with the headline unemployment rate and how that is not capturing the slack in the labor market. this month, we really honed in on the 45 to 55 -- 45 to 54 year olds within that prime age. that really surged in november. what we can see is that now, more than 78% of people between areages of 45 and 54 working again, and this is the first time we have really gotten back to levels consistent with the previous expansion. before this month, we were still well above in terms of these

people out of work. anything we have seen in the past before, so that is a really good sign. these are the people and a lot of people wrote off and thought would never be able to come back . you can see by the chart that they are just pouring back in. : this is the non-employment rate, just to be clear. scarlet: thank you for clarifying that. i have a chart showing retail extending its hours, which has obvious implications during this time of year. that's right. employment growth and wage growth were fairly tepid, but the one thing that really popped was weekly hours worked. if you are working more hours, then you are going to make more in a given week, but interestingly, when you look at the numbers, and a lot of that jump in hours worked was really just in retail, so that is the -- the blue line tape -- basically takes retail out. you can see there was a big jump in hours worked in retail, so

that probably bodes well for the holiday season ahead, and is one reason why income growth really picked up. : the idea is that there is more way does more than one way to get income up. -- there is more than one way to get incomes up. either way, it is accelerating. matt: that's right. you can see jobs growth jumped up in november, and that was two to that spike in retail hours worked. there's two other lines. the amber line shows the same measure, but it's from the u.s. treasury's daily withheld employment tax receipts, and that does not get revived, so that is a really good measure. we know that is not going to get revised and you can see it has clearly stepped up this year from about 4% growth to 5% growth, so that is a really good sign. joe: i want to ask a question that kind of fits into the chart

that julia showed. people with high school education, their unemployment is coming down. it seems like there are all these stories we were told about structural change in the economy and big classes of people, like nothing we can do for them, we cannot lower rates enough to ever bring them back. the story seems to be all those stories were wrong. : absolutely. however you look at the data, we are seeing very strong job growth across these demographics, and wages still are not picking up, so that kind of goes against the notion that we are out of workers to the point where wages would be driven up. that continues to be the case. julia: pulling them from other places. scarlet: do we know what quality of jobs are coming back to? matt: those come from different surveys, so it is a little hard

to tease that out at the moment. julia: i was wondering to what extent that might be depressing the wage gauge. if they are, low-cost or low-wage jobs, that is a different phenomenon. julia: if you look at the base effect compared to last year, and it will be the same case in it wasr this year where underestimating the modest pickup we are seeing. matt: going back to the last chart, we have certainly seen a step up and income growth, so that would indicate perhaps weird undercounting wage growth or hours worked. it's hard to figure out which one that is, but when these data get revised a year from now -- julia: you can come back and tell us. thank you for joining us. it is now time for a look at some of the biggest business stories. bill ackman will likely face trial for insider trading claims

on allegan last month. he is said to have bought allergan shares while secretly knowing valium was planning a hostile takeover of the company. a u.s. judge entered a tentative ruling today. the boston herald has filed for chapter 11 bankruptcy in delaware. the newspaper agreed to sell operation assets to gatehouse media. they been struggling with pension and declining liabilities. the deal should allow operations to continue. banks with billions of dollars at stake in the stein has scandal will have to wait. delayed a meeting with lenders from december 11 to the 19th amid accounting irregularities that are keeping it from a listing earnings. total exposure to lenders and other creditors was almost $21 million as of the end of march. and pepsico is transferring its listing -- moving its listing from the new york stock exchange to the nasdaq.

the switch will happen after the market close on december 19. in a statement, pepsi says the move will provide greater cost savings and allow a better connection with investors. pep will remain the same. that is your business flash update. a better connection with customers? really? appearing to younger people? : it seems very late 1990's, doesn't it? like, who cares. apple, google. scarlet: you are saying there is a buzz factor there? joe: i don't think you should be allowed to be on the nasdaq with just three letters in your ticker. julia: i think the nas that might be getting to the point where they are having to restrict due to the number of letters. scarlet: take note.

joe wants for letters. coming up, what you need to know to gear up for the week ahead. this is bloomberg. ♪

carlet: "what'd you miss?" good jobs report. s&p and dow climbed to record

highs? joe: they are all green. i know that. wednesday, i will be watching that fed rate decision, and it will be followed by a press conference by current fed chair janet yellen. julia: and don't miss this -- the ecb and boe will be making their rate decisions on thursday, too. scarlet: big central-bank week. that does it for "what'd you miss?" joe: have a great weekend. this is bloomberg. ♪ is this a phone? or a little internet machine? [ phone rings ] it makes you wonder. shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data.

choose by the gig or unlimited. and ask how to get a $200 prepaid card when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. , and: i'm alisa parenti you're watching "bloomberg technology p co. president trump has signed

legislation to extend the budget two to seven 22nd. presiding over the swearing-in of the secretary of homeland security at the white house today, president trump praised statistics showing declining rates of illegal immigration to the u.s. nielsen's nomination was confirmed by the senate on monday. vice president mike pence administered the oath of office. trump's to fire was aware his decision to recognize jerusalem as israel's concern, but cause he took it to advance peace in the region -- president trump was aware. u.s. allies in the un security council are criticizing .resident trump's decision britain's human ambassador called it unhelpful to peace. sweden's ambassador said the action