emergency workers appeared to be treating possibly wanted people on the sidewalks. it happened at the douglas high school. you are looking at live pictures. no word on how many people may have been hurt. authorities say the shooter is still at large. after days of negative press following his defense of a former aide accused of domestic violence, president trump to make clear his thoughts on the issue. everyone knows i'm totally opposed to domestic violence of any kind. everybody knows that and it almost wouldn't have to be said. now you hear it, but you all know it. pencevice president admitted the white house could have handled the situation with former staff secretary rob porter better. -- he resigned last week after's two ex-wives reported abuse and today, chairman of the house oversight

committee sent letters to the fbi and the white house. howill -- -- wants to know he was allowed to work at a white house despite allegations. charged with harboring islamic extremists in november of 2015. -- denied knowing the identity of the two men. they suspected ringleader of the paris attacks. kuwait says a total of $30 billion in pledges have been made at a summit rebuilding iraq after the islamic state war. today's's announcement at a conference falls short of the more than $88 billion that iraq asked for but much higher than -- amount for this offense participants originally pledged. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton. this is bloomberg. ♪ julia: live, i am julia chatterley. scarlet: i am scarlet fu. joe: i am joe weisenthal. >> stocks rallying. the s&p in the green for a full day. the 10 year yield is pushing above 2.9%. joe: the question is what did you miss? jump in an unexpected inflation in january shows the rate hike schedule act in the forefront. here are over year because of closing costs. meanwhile, data releases also keptng cold-weather shoppers away in january but the retail sales declining .3%, missing estimates. on siliconotlight

valley. president and co-ceo of goldman sachs joins us exclusively from the goldman sachs technology conference in san francisco. julia: one of the most-watched of latecipated delivered a surprise for investors. 0.3% month over month, 1.8% year-over-year, topping estimates. 10 year yield rising to a four-year high after the report at 2.91%, to be specific. joining us now is professor at the university of oregon. great to have you with us. been saying all along, one number does not make a trend at this stage but it helps to explain some of the conundrum last year about why we were seeing a better or more .ignificant pickup

>> exactly. why inflation was so low, it seems to be resolving itself late last year. this number in particular being a good sign that maybe the fed inflation forecasts will work out as we get further into the year. >> maybe there hasn't been a huge change and may be market volatility is market volatility but big picture, has the fact that the inflation forecast may be starting to come around to how the fed expected to evolve, does that change the macro backdrop in the sense that it is not worried about disinflation anymore? remember that the fed hadn't is a pitted that inflation is going to be rising this year. big part of how we think about inflation numbers. forecast,ll meet its

that it didn't think it would meet the hike expectations this year. the three hike expectation. i think we are coming along to the fed's view of the world. i think the fed will resist wanting to move in that direction too quickly. the big thing to keep in mind was last year, the fed did not react to the numbers we saw. they stuck to the basic forecast . arguably, it could be said they should have stopped hiking in december, not hike in december, and be prepared more quickly this year. they chose to keep hiking despite low inflation -- low inflation numbers.

i expect they will look at the a littlend say this is high. >> closing prices, apparel drove the increase. is that a big chunk? >> 3% is not a huge chunk. the component was up. they one big chunk in apparel prices. the red flag was how broad-based the gains were. is this really a reflection only

wanting to increase those a year. that is worth considering. >> talk -- talk about the bond market. it can you -- 10-year curve in particular. what d.c. going on here in terms of the evolution of repricing that we are seeing in the bond market? >> a couple of things are going on, one is that we clearly have to have more expectation a fed rate hikes. if we are thinking maybe they will not get a full three and maybe they thought the risk would be less, it is clearly the opposite and maybe more. we also have to think that at this pace of growth in the fed forecast, we will see more in 2019. that is really an element here.

if you have it still going in this year, clearly the rise of inflation suggests you should take out any remaining deflation at the forecast, if other factors are the real interest rate, the neutral interest rate could be rising. that was always part of the fed forecast as well, that as we move further from the financial crisis, we would see a healing and onecial markets response to that would be a rise in the neutral rate. there are a lot of reasons to think yes, rates should be muchd higher and how higher is still the big mystery. joe: the other huge question hanging over everything now is the surprise amount of fiscal stimulus we will get from the big budget deal and the tax cuts. from a macro perspective, do you think it can raise real growth or will this just result in inflation? how do you see it changing numbers?

a bigare running experiment. fiscalsuch a large stimulus in this business cycle, we are really going to be testing, i think, the extent and spare capacity left in the u.s. economy. now, i think you have to say the near-term outlook should be for a boost of growth, higher in 2019 than expected. the possibility is the federal reserve will try to raise interest rates next year and is it that. i am not sure we will change it dramatically a growth side but it is more how we do the interest rates that i'm really watching here. something could occur over the next two years that not many people would have expected here it may be we get interest rates back up to an environment where the fed is not think about the zero bound anymore.

would be nice. >> professor at the university of oregon joining us. thank you. coming up, co. coo david joins us from the goldman sachs tech office in san francisco. is bloomberg. -- this is bloomberg. ♪

scarlet: we have breaking news for the president of south africa says he has been says hed to resign and will continue to serve the party as president of the bidding of the national conference party. he earlier said it was unfair him to party to push resign because they decided to replace him and said there was

nothing that was wrong. .> a huge day today, 2.4% >> we should bear in mind, if you look at the performance we since november, you can see the significant rally we are seeing since the back end of in ther, a 20% rally south african run. a lot of good news. >> if you want to listen to the speech, you can go to live go on the bloomberg. he says he is not above reproach. wall street and silicon valley emerging at the conference in san francisco. the dealmaking summit includes presentations, panel discussions by some biggest names in finance and tech. emily chang is standing by at the event with an exclusive conversation with a special guest. emily: thank you. i'm here with david solve --

david. this is obviously a big technology conference. jack dorsey spoke yesterday. cooper is speaking later today. why do you do this conference? is it about getting the lead on the next video? >> the conference is actually sponsored by the research area of the firm. the goal has always been to convene out here in san to bring the companies in the technology space and give them an opportunity to connect with of thousands investors that come throughout the country. you hear about the growth plans and it has been a hugely successful conference. --ot of very introduction and really to bring them best

together. >> will we see more m&a? wayhe year has set up in a that i think it will be a constructive vote for m&a activity and ipo activity. -- picks upes toward the end of 2017. we have a healthy backlog. we have the environment for a variety of reasons here and why 2018 should set up to be an active year for strategic m&a. >> what do you think we will distinguish from last year? speaking, you look at last year and you had us -- a sense of the election. regardless of your politics, there was a general point of view that the shift have the potential to be progrowth with the economy, and therefore progrowth with asset prices and

obviously instructive for m&a and equity market activity, very quickly we got to a mode of discussion about whether or not tax reform so people sat back and waited to see how the policy discussion would play out and that slowed activity down particularly m&a activity but then we reached a point where the process it wasn't clear that process would come to a conclusion. taxdialogue started but now reform is done, we are at a moment in time with strong, correlated global growth across economies. ity strong and it feels like is it celebrating. there is a rollback in so 2018 is set up to a a lot of those discussions. >> you said we see a pivot and growth expectations p what do you mean? >> there has been a lot of talk about whether or not growth would accelerate, whether 2% was the new normal, whether or not

we would see 3% growth again in the u.s. economy, would we ever see inflation, is everything going on with technology so reached ary, but we point with a couple of quarters of growth that nearly 3%, we are starting to see signs of wage growth, the result of an economy , and the result is people are inflation coming into thousand 18. are we going to see rates be higher and the consensus is yes, we are going to see that monetary policy that has been so prevalent in markets for a long time as we came out of the financial crisis. we are at a point where people are saying that is starting to occur and that is different from where we were last year. >> the focus on primary valuation, are they healthy right now? >> i think private market valuations have heightened it it in the course of the last 12 to

24 months. capital has been a little tighter for private market funding. i would not say valuations are bubbly but there is no question that in an environment to last where growth was sluggish, investors are looking for a place where there was growth and silicon valley technology was a place with a lot of growth. tech, itat large-cap is remarkable what is going on. you look at amazon throwing 30% on $180 billion of revenues. you look at facebook, $40 billion of revenue and it is growing 40%. these are big companies with a large market cap and they are growing very quickly. that obviously creates interest around other businesses. >> by tightening, are you saying they are plateauing or going down? >> i wouldn't say going down. as long as growth continues, i

think there will be plenty of capital. ambulance of the private capital raising has tightened a bit. >> better for trading, we see a lot of volatility. do you expect it to keep up? how do you take advantage of it? >> there is no question the volatility is a result of what we were talk about. people are seeing signs of wages if they increase your think there is a chance of inflation in the economy and you see the strong growth numbers come out, that will bring it back to a normal environment. no question it spiked a little but remember it is coming off of extraordinary lows. it would be healthy for volatility to be more normalized in the top -- in the context of a larger time.

the ultra low volatility of environment we have been with in the last couple of years. >> any concern that maybe some of your employees have lost mojo? >> i do not. it was a tough environment. if you're in the market business, what our business is, almost 100% market and mediation, if you're into that is this, it was not a great environment for the business. there were places where we may what we formed versus would like to hold ourselves accountable to hear we have got the best team on the street and we are very focused on client market shares and the opportunity for us to row market shares, off of a very high base, i think environments for the business will be better and tough but it is part of a portfolio of businesses at goldman sachs which are doing very well and this environment overall. >> i know you cannot speak to specifics what do you think that

size of a deal will be an outlier or would be? >> it is still a very large deal by any stretch. an interesting thing, bringing us back to the technology space, is when you look at these companies with $5 billion plus market caps, they really have not participated. they have pretty much grown organically and they are. of the bigble one companies steps in and wants to enter a space and does something significant? that is possible but by and large, $100 billion will very bigto be a transaction. >> speaking about cryptocurrency, a lot of curiosity about it. how can goldman help clients who are interested? the space andhing we are interested and one clients say they want to learn about this, we are learning. clearingment, we are for some clients.

that activity is small. no immediate plans to trade the currencies. -- there is at lot of hype and activity for this. we are watching the space cautiously. we think blockchain's are very interesting technology. cryptocurrency has become real value, it is something we will watch carefully. >> you have been vocal about hiring and promoting women. what specifically are you doing to make that happen? importantty is hugely to us at goldman sachs and our business. us to be successful with the clients and sell the -- human capital organization, we have to have that and 20 years, we have worked at that in our business. we have been focused on hiring a lot of people every year, particularly out of school young people, focused on trying to

make sure the diversity of the group of people we hire every year out of school matches the diversity of the world that we are hiring from, whether it is women or black americans, or hispanic americans. we are looking for opportunities to into -- continue to increase the population. we have made real progress p are we brought the diversity of women in the summer class that will come in this year up from something below the 40's to the higher 40's by focusing on entry point on the pipeline. if you do that and your entry point at the pipeline where you are hiring people creates a more , itrse population over time is pre-much the same and you should do better having a broader pool in the organization. it interesting that the numbers are closer to 50-50. still work to do when it comes to getting leadership women but in the valley, they make up for

7% of investors. how is it possible wall street is doing a better job than silicon valley? >> you have to put some of this in perspective. you are talking broadly about a broad universe. a lot of the companies we have , technology about companies, talk about google. it is not 20 years old yet. facebook is 15 years old. than 20s a little more years old. these are young companies. in the context of getting focused on this, they have only gotten focused on it recently. goldman sachs got focused on this in the early mid 1990's p we have a lot of work to do but we have made a lot of progress because we have had that focus and leadership from the top really focused on this. it is a real strategic priority for the organization of my guess is we will make progress but it takes time. scarlet, i will send it back to you. scarlet: thank you.

we want them -- recap the breaking the cross bloomberg earlier. this is the president of south africa speaking right now. he has said that he has been compelled to resign by the -- presumably the vote of no-confidence or the one that is scheduled. he talked about how he will continue to serve the party, the ruling party of south africa. if you look at the south african rand, it is stronger right now. but you can see the move is slightly higher in the line indicating the dollar strengthening or reducing some of its losses. we will continue to monitor and give you any other headlines. he says he has no confidence or impeachment. >> this man has hung around for a long time.

so we will see. >> let's turn to the markets now. we are taking a look at the top of the hour. it is at a record high. we looking at soda stream climbing after its latest earnings report, up 5%. >> it is. it is trading at a record. it used to be anonymously shorted. it came down a couple of years ago and now it is rebounding again. it still looks relatively strong. revenue rose a most 1% during the quarter. the company side 21% gain in sales. ands selling more machines more of the carbon dioxide canisters going to their machines. full disclosure, i have one of these. that sodar noticed stream passes percentage game has just outpaced amazon. fun.of

they are neck and nine. 74 percent, amazon, 73%. >> thank you. the market close is next. this is bloomberg. ♪

[applause] u.s. stocks in their session in the green. if you are tuning in live on twitter, we want to welcome you. >> we begin with market minutes straight the headline that just broke a few minutes ago is that jacob zuma has resigned as president of south africa. rain, theook at the move south has been going on pretty much all session long.

>> we have been talking throughout the show we have seen a significant rally since november of last year. the speculation that he would be ousted this week. a rally in the emerging markets standardlt curated -- we are nowng -- that could round to 10.9. a quick look at what else is going on. yen, 8/10 of 10%

curated >> he said there is a behindofound disruption the move we are seeing. what else do you need to energize? dollar risee the areier, but those gains short-lived. a quick look at what is going on. you can see the canadian dollar stronger. we are talking about more details going on. he can see the dollar seen playing out. >> says u.s. stocks resume their offense, the vick having its worst season since april. it has come back down to 19 and

if you look over the last couple days, you had that spike to over 50. it has come way down and people are talking once again about volatility returning to the new norm. if you look at the industry movers, i'm looking at consumer discretions. overall, seven finished in the green. let's take a look at those bond proxies. higherubstantially across the board. look at that. i we have had conversations in the january. this and no like

one saw it coming. firm inflation print. there is a look at the 10 year. keep in mind, a -- what a ball the curve inversion? -- what about all the curve inversion? >> finally on the commodity .ront, higher across the board we don't have the chart, but that is ok. everything basically green today . people are buying everything to paraphrase. let's bring in my greg and myete coverage -- who leads

coverage on the bloomberg. simplenot sure there's a explanation. if you go back and look at when the correction started, obviously, higher interest rates and higher inflation. then things got out of control and irrational. on the markets live blog, did you guys believe -- >> people took a second look. i'm not sure there's a simple explanation. a few stories that stood out to

me, one was the story of the having an epic turnaround and also it went below the radar, but apple talking potentially about raising its dividend. cash for lot of free returning shareholders to buybacks and dividends. i'm surprised we have not seen these big announcements yet. tois a pretty good reason not get to bearish on the market . you have been looking at volatility and i think that is the wrong thing we keep going back to. more choppyto be

than we saw in 2017 rated >> >> you are looking at the spread and the rest of 2000 as well. this is an interesting one. >> what you are looking at is andspread between the vix the rpx which is the vix for small caps. all that red is your typical pattern. the rpx isshowing is .uch higher then, you see the giant, unusual spike in green last week. really, i don't think anyone needed more confirmation, but this kind of illustrates how crowded that was. it was crowded in large-cap

stocks. -- rpx has futures on it. >> another thing is the connection between the vick and high-yield debt. you get a decent job and high-yield. >> absolutely. not quite in all clear signal, but they are coming back down a little bit. if you were to back this chart up a couple years, you would see they were way higher. relative moves the last couple weeks, not really quite a clear signal yet, but something to watch. it points out how insane

those moves were. ultimately, these were some pretty huge moves. to only be moving around as far as the equity markets shows a degree of resilience. >> i think so. i think it speaks to a lot of people it is a sign of late cycle. markets can be a little bit more volatile. thank you for that. reporting slightly higher than expectations. the bottom line number, $.63.

the have on here that might be driving shares higher is that it is increasing dividends by 14%. maybe this is become kind of news that is helping to support equity prices as you get hotter than expected inflation. we also want to take you to florida. there has been a school shooting there. members will then. shooting suspect is now in police custody. my president also tweeted prior condolences to the victims. no child, teacher or anyone else

in school. unsafe we will bring you more updates.

>> authorities say suspect in this afternoon's shooting at a former high school is in custody. an undetermined number people were wounded. tweeted students and teachers should remain until police reach them.

the white house is voicing its opposition to an immigration proposal from senators john mccain and chris coons. white house spokesperson says the plan would increase patiention, surge chain path of citizenship to immigrants. thezuma spoke after congress announced it would hold a vote of no-confidence thursday. as ancesuming to quit leader in december. secretary-general says the lines is likely to get the green light to a training mission in

iraq. speaking today, he says it is the latest effort to fight terrorism and symbolize the country. -- this will help iraq be safer and -- occur. >> stoltenberg says the turkish government has some legitimate security concerns but is urging ankara to show restraint. >> tripadvisor reporting the latest and the all caps -- results.

this is the average analyst estimate. sharesisor only buying of $250 million. it is not obligated to do so, but as you can see, stocks getting a boost. at -- at aontinues solid pace. is frederick. great to have you with us. talk to us through the numbers. how confident are you about the pace of growth 2018 and at what point does a become more problem for the european central bank? europe is starting on a very strong note. it is stable for our area.

beyond the headline numbers, stronger than expecting. a bit weaker than expected in that, i thinknd the recovery is morphing into a normal extension. we have come to the point where the market no longer reacts to the news because it has become business like usual. we've had broader, stable recovery and it is now providing disability to the policymakers. in the u.s. context, there's , why lowg discussion unemployment has not translated. in similar is the debate terms of the same inputs leading

to outputs that might confound policymakers? >> it is leading to some kind of conundrum because the curve is probably flatter than it used to be in the past. i think it is also interesting to highlight the differences. news.e difference is bad utilization is becoming a constraint. for bad reasons, you could get higher inflation. other reasons, you have a very which global growth

perhaps worked a few years ago for the u.s.. strong there are some reasons to believe inflation will interact with u.s. inflation. >> going into this year, there were reasons for people to believe that growth was brought in so it would not just be germany, but also france and italy. where are we in this cycle of european growth? >> it is not the normal business , but comparing to previous cycles, i think we are in the middle. very strong constraints waiting

on corporate investment and hiring prospect for the company's. even though we may not get the , in terms ofth , it is and composition likely to become better. >> thank you. coming up, if you look at u.s. equities, not so much for the vix. a chart you can't miss. this is bloomberg.

our weekly for segment. joining me today is very walled. in the lastt we are few weeks before this one tremendous downside, now a rebound create what you think is happening? >> i think we are set up with the bull market continues. be openinvestors should to the idea of a 200 moving average. to make this case, i think you

have to look at the s&p 500 futures. we hit that level in the overnight sessions new monday night before. it was only a matter of five days. the first time we get the 200, that was the high intensity low. friday.d it again on we see that sellers were losing their intensity. i think we are setting up will be bull market to continue. the wave not heard of bottom. when i look at this chart, i see the possibility of a bear flag or pennant. do you think there's any possibility they will strike

back in or do you feel confident? >> there's also -- always a possibility. for me, it is about trading the direction for trend. i see a long-term uptrend still intact. some additional. >> a few months ago we were on a technical analysis panel in the sense something that struck me. sector last year 20%.the lows, down almost printed.e hot cpi

you have a great chart that brings this altogether. the buying the best .elative trends off, let's begin with the 10 year treasury yield. i think it is too soon to bet against rising interest rates when we had a 10 year downtrend. i think that would be some additional confirmation that we could be within the longer term reversal and i think the applications for equities as you want to sell the bond proxies karen thes the wife s&p 500 and numerator is

outperforming utilities underperforming and we could see this line is broken through. stay away from that group. higher.ve other sectors that would not be that warning. you would still say bullish? threshold reached the , but relative trend is a zero sum game. i see it as a sign of his bullish appetite. buy.ill time to >> want to give you an update on the breaking news. shooting inschool douglas high school.

>> the broward county sheriff's office has tweeted that there were at least 14 victims in this afternoon's shooting in parkland . the suspect is in custody. 2015-2016's we are come up more than 3000 students were enrolled. mitt romney will announce tomorrow that he is running for the utah senate seat. the former governor moved to the 2012r losing

presidential election. president trump today sought to make clear his thoughts on the issue. am totally knows i ofosed to domestic violence any kind. everyone knows that can almost would not have to even be said, so now you hear it. vice president pence admitted the white house could have handled the situation with former staff secretary rob porter better. he resigned after his two ex-wives came forward with allegations of abuse. trey gowdy sent letters to the of the eye and white house. they want to know how quarter was allowed to work there under an interim security clearance under -- despite abuse

allegations. south african president zuma has resigned. lives should be lost in should be no lives lost in my name and the agency should never be divided in my name. therefore come to the decision to resign as president of the republic with immediate effect. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 100 countries.

>> despite the hotter than dowcted cpi report, the closing up. as joe manchin, if we get another day like today -- pretty stunning comeback from the equity support -- equities report. south african president jacob --a resigned, bringing in leadership.end to to have you with us. when you spoke earlier -- is this ultimately the end for jacob zuma's leadership for you

expect him to interfere with the ruling of the country? >> that is a good question. in a formal capacity i would say this is the end of it. overeputy president takes and enacting position. jacob zuma would likely be expected to retire and some people have asked the question will he play some kind of role ?n interference i think zuma will play a constructive role and will not try to destabilize the party. >> we see the rand rallying

2%.y a little over is this the start of a meaningful change in the political and economical trajectory of the nation? >> it is a start and you would expect to see the south african markets wake up positively absorb thisn they news. take a good will boosts, the equity market will take a good boost, but those are also euphoric expectations and , once he gets sworn into office as early as tomorrow, he will face very similar constraints that zuma faced. facing an economy with structural challenges will be very difficult to resolve. honeymoon willa

they give? >> greg question. he certainly has the confidence andsupport of the community i think they will give him some fair amount of leeway. things will look fairly positive and rosy for south africa, but the hard part will be for rim of post a to mend relations within the anc and certainly address the less fortunate constituents who grew fat on the hog under that maybetration won't have the attention and businessn under a new aid from a host administration. administration. >> inflation is back.

headline cpi rose. , young us now on the data lena. talk us through the numbers. wasne chart that i brought on apparel prices and that showed a very big spike in january, so what happens is apparel prices usually fall in january as retailers make deep discounts. this time around, the prices actually rose. that drove to this and other categories in unusual increase.

>> is there any reason to think that this is the start of a turnaround or is this weird noise that may have had to do with makeup for the deep discount we saw? >> i think it is totally noise. historyee through usually after the spikes, it goes down. growth,ook at the trend goodill see that actually is still falling. is the white line on the chart. look at the yellow line of the chart. sideways ating best. ofare not in the beginning inflation. we're moving slowly in terms of

higher inflation. >> we have more than cpi today. we have a chart looking at the retail sales. what are we seeing here? shows the numbers and you see there was a big spike in the fourth quarter of last year in terms of sales. we think consumers -- and will seeharge all the tax cuts coming their way and they will make up later on in the quarter. >> i know it is a cliche to

bring the weather, but it was really cold in january. do you think that had an effect? >> yes. the whole reason. if you look at nonretail sales, they were not sitting at home and shopping. if you look at building materials, other sales, they were hurt quite a lot. maybe it was a little bit of whether there. >> thank you for joining us. coming up, steve bannon speaking out. the former white house chief strategist could spell trouble for republicans in the midterm elections. this is bloomberg.

>> steve branning -- steve bannon saying beat me to move that could spell trouble for republicans this november. -- steve bannon, no matter what keenight think of him is a observer of trend before they become big. >> the story was how banning spotted trump before everyone else said. that is a comic poignancy men and is sitting here watching oprah and convinced he is seeing the next wave coming.

that ban and is in albright cassondra. see.at do you you describe it as a cromwell moment the rate at he actually seeing in terms of backlash? >> think he was seeing the power of the me too movement. speeche agreed oprah's was galvanizing. all the chatter in washington was she could run as president and when. i think brandon sensed she was connecting. they could tell she was being effective.

>> there was a natalie portman moment as well. a lot of my male friends were like hold on this is way bigger than just need to. it is a male thing. scenes. could share the there's a moment where banning is slamming his this on the table saying that is it. if you roll that right now, these women would chop off. >> he has a 40 and act that a lot of men share. kind of follows in a sense ties to the u.s. administration. the president himself tweets as well. >> it underscores what brandon says is a blind spot.

we are two weeks into this scandal and no end in sight. >> what do you make of the way of what appears to how the white house is being run right now. a lot of question about the authority order ability that kelly has. how has it changed since then and left? is, itcrazy thing hasn't. it is absolute chaos. they are mad and sticking knives in each other's back. >> put this all together, we are still months away from the election and that is where everyone's focuses. if things continue this way, would be hearing from steve him andnd those around people don't like him about how this shores up or destroys the republicans? >> they see a wave coming and it is driven by women.

we had early indications in virginia last fall, 15 male republicans were defeated by democrats. these are the stories we are seeing around the country and unless there is a course correction in the white house, i would expect that wave to carry on through november. >> what is the course correction look like and how did you tell the president that there needs to be some kind of force correction? that's i think we will have to dive into the realm of fantasy politics. again with donald trump coming out and saying it is time to put this rob porter scandal to rest. i have done an investigation and here is where he slipped up. in any ordinary white house, he would be gone by now for mismanagement. chunks have it is to let people

sick around and torture them. maybe in a few months he moves on. who knows? it is donald trump. you can never predict. >> great to speak with you, joshua green, whose book devil's bargain is out now on paperback. >> left -- let's give you an update in florida where there has been a school shooting at douglas height. if the shooting suspect is now in police custody. the sheriff says there's at least 14 victims. situation andic horrible day for all of us. the president tweeted my prayers and condolences to the victims of the shooting. -- no child should feel unsafe at school in america.

we will bring you details as we get them.

revolutionlearning is getting and thought an impressive -- passive investing. aieq.ders of the goal we set is to match the volatility of the market and based on that goal, it looks at all the data, news data, everyday millions of news articles. it combines things together to deliver a portfolio that we can use. performanceudge or

-- how do you judge or performance? i'm confused on how people can tell whether they are doing well or not. >> that is a challenge. it is a different way at looking at investing. it was -- isok at to compare it to the broader markets, but also 2000. the average size of the company is a mid-cap company, but we are aiming to match the volatility of the u.s. market in the can see it has done very well the last three months. 3.2% sinceeturned last year. -- it is written is we are looking for long-term appreciation. we anticipate appreciating within the next 12 months.

so really, you need a 12 month time frame to judge whether it is working or not working. works, machine learning it will continue to do well over time. learned toonth, it get used to the constraints of an etf. it has done exceptionally better it should improve as time goes on. call this ans, you actively managed etf. what is the human role here? ,the -- we supervise learning how does it perform and behave? is non-supervised. it collects data by itself. involvement isn

quality control. overridehe human ever some of the decisions watson makes? like does remove things human bias. >> give me an example. >> the system is making a decision. it is not a person. people have things like confirmation bias. there's a study that shows not only an individual person, but professional investors as well. what about the selloff when ditching?e > we tried to diversified to minimize the risk. down,he market is going

it takes a more defensive stock like walmart. to what humans did as well. final question one of the limits by ai driven investing. -- final question, what are the limits of ai driven investing? >> right now, it is objective driven. the objective is set by us. as we go along, we can have higher level objectives. data that you can comprehend, we can put inside of it.

the parameters are set by the data. >> those were the cofounders of equbot. tune in every day for full coverage 30 in new york, 5:00 p.m. in london. >> coming up, what you need to know for tomorrow's trading day. -- bloomberg.r."

>> u.s. stocks are racing, hotter than expected inflation report finishing in the green. coming up, don't miss the chinese and taiwan markets closed for the holidays. >> producer price index. next, build early, and benchmark for goldman sachs. that should be interesting. >> that does it for what he we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited.

and now, get a $200 prepaid card when you buy an iphone. it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." authorities say a suspect in this afternoon's shooting at a florida high school is now in custody.

officials say there are at least 14 victims involved in this incident. swat teams converged on marjory stoneman douglas high school as students, with their hands raised, came running out. three people in a vehicle tried to make an unauthorized entry onto the national security agency at fort meade, maryland, this morning. that incident left three people injured. all the gunfire was directed toward the vehicle and not the nsa building. a former republican presidential nominee, mitt romney, will announce tomorrow that he is running for the utah senate seat, held by retiring orrin hatch. that is according to the associated press, citing three people with direct knowledge of the plan. he moved to utah after losing the 2012 presidential election. a french court has acquitted a man charged with harboring islamist extremists. he