u.s. presidential election. >> a grand jury in the district of columbia returned an indictment presented by the special counsel. brush on nationals and three russian companies with committing federal crimes while seeking to interfere in the united states political system. mark: president trump sent out a tweet in the last few minutes which reads in part, "russians started the campaign in 2014 up long before i announced i would run for president." chef was among those u.s. prosecutors. he says "americans are very impressionable." his restaurants and catering businesses once hosted putin'sts -- president

dinner with foreign dignitaries. he says "americans see what they want to see." investigate a to tip that the florida school shooting suspect could be plotting an attack. killed 17 -- jeff sessions says the shooter that killed 17 people this week was a tragic consequence of the fbi's failures. it failed to a knowledge on a tip to its hotline that the shooter had a desire to kill. pentagon watchdog agency is raising new doubts about theress regarding 16-year-old war in afghanistan. by the year 2017, the afghan an expanded its areas of control. it is too early to judge whether

presidents -- whether president trump schools will push the government to reconcile. 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. ♪ >> live from bloomberg's world headquarters in new york -- >> we are 30 minutes from the close of trading. major averages for the moment are in the grain. is7 what'd you miss? scarlet: special counsel robert mueller unveiled a sweeping and coordinated campaign by russian

to interfere in the 2016 election. russian actors manipulated the 2016 election through social media. sports media and technology, are they taking over beverly hills? us live fromins the tech summit in los angeles. what'd you miss? an indictment disclosed to washington, special counsel robert mueller charged 13 russian nationals and three russian entities with defrauding the u.s. government by interfering with the political process. insident trump has responded a tweet and in an official statement. n a tweet, he said --

the white house statement is saying something similar. said it is more important than ever before to come together as americans and not allow those who are seeking to sew rancor to be successful. we are joined by someone who has read the indictment. to be clear, it seems as though there was an attempt to influence the u.s. presidential election. >> it is correct these efforts started years before trump. is that thee russians wanted to interfere with the u.s. election. did it became trump versus hillary. in favor of bernie sanders. it was an attempt to roil the election system. the indictment does not establish there is any

collusion, but it does not preclude it. eg: it is clear the people in the trump campaign, in florida and texas, was unwitting. there was no evidence at all they understood there were russians emailing them. but the trump tower meeting, there is evidence that there were over to attempts to deal with the campaign -- overt attempts to deal with the campaign. scarlet: the president is right in saying there is no collusion based on today's indictment? >> that precludes what is coming. the investigation is ongoing. scarlet: how does this connect to what is happened with the previous indictments of michael flynn and paul manafort? and george

papadopoulos have admitted to lying about contacts with russians. that smells bad. there is no proof of actual quid pro quo in the campaign. but these things keep mounting. today's indictment shows a real toort by the russians subvert and get involved. julia: this investigation is still ongoing. the bloombergng says that mueller and his prosecutors have not concluded their investigation into whether there indeed was collusion. we figure about how out or if we even can whether they actually influenced the election? tried, it that they can seem anecdotally they likely dead.

did. but what is the way to know? greg: voters are not going to come up and say, i saw that advertisement and it changed my vote. are never going to see these 13 russians in the united states? indictment was an opportunity for the special counsel to show he is doing his job to try and get to the bottom of the russian interference. we are never going to see the 13 russians. the justice department will indict a few characters in china for doing this or that with no realistic expectation of getting those guys. julie: after reading through the indictment, what details will you be looking to learn when or if the next shoe drops? reg: there are details and

references about unknown persons and co-conspirators. to build this case, the process -- the team had to do a lot more. cooperator, a fellow who helped facilitate paypal accounts for people using stolen bank accounts. a number of campaign to people probably talked to prosecutors and told them, i didn't know this guy was russian and this was what i did. you have to assume the prosecutors know a lot more than what appears. this is the tip of the iceberg. scarlet: thank you so much, greg all 37, who read through pages of the indictment. here with more is a democratic congressman from washington and a member of the house intelligence committee. congressman, we have heard from

the white house and the president, saying the russians started this campaign in 2014, long before he -- trump ran for president. he says he did nothing wrong. reaction from your end, especially since you have been holding hearings in the intelligence committee. i would like to state clearly i don't think the president's tweets are any longer relevant as it relates to this ongoing investigation. to be relevant some time ago. this is the individual who has thatained all along russians interfered in our election was a hoax. what i hope comes out of this sweeping indictment of 13 individuals in unbelievable detail is that the members of the majority party on the intelligence committee and elsewhere will engage in serious soul-searching.

joe: is there anything in your tiew that can be done to protec future u.s. elections against interference? we have precisely to 60 days to get that done before midterms. -- 260 days to get that done before midterms. the president refused to let be sanctions congress passed -- levy be sanctions congress passed. we have to send a message that if there is a cost to do this, a price is going to be paid. there is no accountability against the russians for this clear indictment. understands this indictment is freely available online at the department of justice. to readage everyone

them forth -- read it for themselves. excerpts have been released on social media. what about accountability there? do your -- you and your colleagues in congress after fromng from executives social media companies plan to introduce legislation to regulate russian interference or foreign power interference via their platforms? rep. heck: the response is going to be clear and multidimensional. working with and holding social media companies accountable is a helpingt, but so is state and local election officials making sure their i.p. , andstructure is protected to make sure the russian infrastructure pays a price. there are a lot of things we must do and do quickly. should yourt

constituents due to insulate themselves from russian social media trolls? self awareness, awareness of the situation is most important. we have to get long past with the president has self assertedt there was no interference. there was and it continues as we speak. theave verification russians are interfering in the mexican national elections. they are not going away until the price they pay is too great. as long as that is the case, the individual citizen must be aware of it. all of thiscdote to is increased engagement and involvement. in the love nothing more midterms to see turnout go through the roof compared to what it is.

that would send a message to the republicans. this is our country and democracy. you can't have it. joe: is there more you think tech knowledge he companies could deal? companies couldgy do? nowsatisfied are you right with the degree the companies are taking this seriously? they couldi think take it a lot more seriously. we had with those social media platform companies, what is so important to understand is that each of these companies have grown and prospered and become a very important economy -- component of how we do commerce and interact with one another in this country. is brought success about by the stability of the the unitedoverned in

states of america and the new rule of law under which we operate. are a those is, if you foreign country, stay out of our elections. scarlet: you are on the house intelligence committee. another piece of news today is tied to the school shooting in florida. governor scott of florida has called for the resignation of the fbi director, christopeher wray, that it received a tip on the shooter and they did not follow up. what is your position? i heard about this within the last 90 minutes. it is too early for me to indict and convict the director of the fbi. certainly, an investigation is called for, if there is a breakdown in the system, we need to fix it and hold people accountable. thank you, congressman

househeck, member of the intelligence committee joining us by phone from washington dc. coming up, our coverage of the roberts miller probe continues mueller probe continues. from new york, this is bloomberg. ♪

scarlet: our coverage of the indictment of russian nationals by the special counsel continues. it indicates a social media campaign by russian actors seeking to influence the 2016

american presidential election. social media companies remain under fire for preventing -- failing to keep the russians from exploiting their networks. themselves were speaking to congress last november, with lawyers from facebook, twitter, and google fairly defensive. we remember those conversations. defensived fairly when talking about the roles of their companies in how things played out. they were pulling information out, rather than offering it. let's bring in our bloomberg technology reporter. have we seen any change in rhetoric from these companies inween those hearings november and now, with all of these new revelations? sarah: absolutely. been saying, have

we did not do enough and see this coming. we have systems that are maybe a little bit broken that we need to fix. these indictments show this is a difficult thing to have seen coming. these companies were dealing with people impersonating u.s. for paypaluying ads like any other advertiser. this goes beyond what they might be able to see and his strikes at how difficult it is going to be to prevent in the future. will trynts about they to increase transparency and have a positive effect on society, there is a fundamental these systems being easily able to be manipulated. did we learn anything new

today about the operations today? operativese russian were able to steal identities of u.s. citizens and create accounts on paypal and by advertisements through paypal. that is a level of sophistication beyond what we were talking about at those november hearings, when executives were being paraded -- berated. they have all of these intelligence engineers, how could they possibly miss people buying advertisements in rubles around the u.s. election? this is much more sophisticated than that. it is much harder to prevent in the future. different companies said in the past they would respond by bringing in more people and adding hiring for these specific positions and doing more quality control. you anticipating when

these social media companies respond to today's indictment in terms of how they are going to address this in the future? arah: they are continuing to collaborate with robert mueller and congress and they will provide whatever information they can. they have already provided information to date. i am wondering if there is more that is going to come out. given how difficult this is to detect, it is possible there are more instances of russian advertisement we don't know about, that haven't come out in this probe. this is part of a longer process. the company says they are still investigating. we haven't heard much since the november hearings. julie: we will count on you to keep us updated. coming up, despite the recent volatility, consumers still feel confident about the market.

do they have the same feeling about their retirement? from new york, this is bloomberg. ♪

scarlet: what'd you miss? of the observations continuously made over the past couple of weeks is that the volatility we saw this month marks the end of this market cycle. at the 90 day volatility of the s&p 500 index going all the way back to 1950. there have been bigger spikes of volatility, including in this latest cycle. there were spikes bigger than the one we saw over the past two weeks. this also has characteristics of accelerating inflation, which is why we are really talking about this cycle and that it has been so different from the other ones in that it was marked by the absence of inflation.

usie: this might not tell about what is happening next in and of itself. but people are optimistic about where we are and where we are going, proven in the latest confidence rating and specifically in the reading of where people expect us stocks to go in the next 12 months. near record levels, the white line. the 65% of theow last reading. us the first reading on consumer's on regular american views of the stock market and whether it continues to rally following the recent selloffs. firsthis data is our glimpse of that impact of the market reaction. here is a chart showing how comfortable consumers feel about their own retirement, relative

to how they felt five years ago. the upshot is that the recent volatility has not changed anything. we are at the highest levels, the dot-com bubble. people are confident they are going to have a comfortable retirement. julie: it seems like people are listening to the rhetoric, all the investment managers and strategists. maybe they should be more worried. >> the market close is next. you can see gains in the dow. the sixth straight game for the s&p 500. >> now up 3/10 of 1%. the nasdaq is the laggard. werel media companies weaker already and the latest headlines from the indictment

doesn't bode well. >> still up 5% on the week for the nasdaq. >> this is bloomberg. ♪

♪ [applause]

scarlet: "what'd you miss?" stocks are mixed. the rally early in the david's link as we head into a long weekend for president's day. i'm julie hyman inferred joy unjustly. scarlet: i'm scarlet fu. joe: i'm joe weisenthal. if you are watching us on twitter, we want to welcome you to our closing bell coverage everyday. scarlet: we begin with our market minutes and julie put it really well which is the stock market rally fizzled. at one point, the s&p 500 gained 9/10 of 1% or 23 point eight in .he afternoon they lost steam it happened quickly in the final couple minutes. joe: ignore me. i'm fake news. julie: it is a reflection of how difficult it has been to keep track of where stocks are at any given moment. joe: yes. julie: because of the volatility

we have been seeing. scarlet: somewhat a tighter range than it has been the last week. nonetheless, swings back and forth. julie: request the numbers -- we crunched the numbers. the average daily range between the high and low was a half of a percent. this year, more like 1.3%. even though it is a little more muted, we are seeing the swings. you see it on the lower that we have seen the best week going back to 2013 for the s&p 500. scarlet: and the sixth straight day of gains for the s&p 500. joe: we have lost 100 points since 3:48. i was not completely out of my mind. julie: what happened? i don't know. we look at some of the individual stocks on the move. one of them is blockchain. this is one of the companies that put blockchain in the name and went haywire, but the stock is down after reports suggesting a rebranding of the company was done, which is not perhaps not shocking of a report.

u.s. steel also on the move. in its case, it is upward. that is after the u.s. is sent -- set to remove the tariff. it is not clear whether the interior -- tariffs would go back. should be clarity on the decision in april. vf corporation, a couple of interesting developments. they came out with a report turning which missed estimates, but it reportedly will be selling the not a brand, which was big in the 1990's and has not reclaimed its title. vf also owns wrangler. getting rid of not from the portfolio. that stock that was performed in the s&p 500, falling by 11%. the decline on the session for the stock in a simple date is worst going back to october of 2015.

scarlet: lovely shout out to the 1990's. joe: now let's take a look at the bond market starting with intraday action. in the u.s., a little more steepening. i keep getting that wrong. a little flattening. something wrong with my eyes.to be revealed up to 2.19. 10 year yield down a little bit -- the two-year yield up to 2.19. the 10 year yield down a little bit. want to look at a chart of the 10 year yield because the key thing is we had this big rally. sixth straight up day in a row for the major indices without a major pullback. this year, the rate still went up. scarlet: what changed? joe: nothing. what did change? scarlet: exactly. let's look at currencies. the dollar gaining some love. .ou can see the euro, the pound

a discussion expected on the policy language early next year. in the u.k., genuinely retail sales weaker than expected. the yen got to 105.5 before eventually erasing its gains. if you look at dollar-yen over the past ideas days, the yen rallied against the dollar for five straight days, but you can see a turnaround at the end of the day. the biggest one-week rally for the yen since july 2016. the yen is the strongest since just before the u.s. election. i need to also mention a big week in south african politics with someone sworn in as president on thursday. in a speech today, the new president gave himself a pretty ambitious to do list to basically revive a slumping economy, restore consumer confidence, create jobs, and crackdown on corruption. joe: let's take a look finally at the commodities. green on some of the key industrial ones.

palladium up. those are today's market minutes. scarlet: for more on today's market action interrupt the week, let's bring in our guest. rates and theto question that joe posed about, what happened to the connection between rates and stocks, here is the indictment by robert mueller. or i should say the u.s. government that robert mueller instituted for us. did not have any kind of impact on equities? did that provide pressure? >> i think it is safe to assume it did. look at facebook's stock. it was down on the day already. i mean, it is hard for me to draw a straight line between this and serious damage to facebook's business, but it is certainly a huge pr problem. frombig picture, total 180

the five last week in these markets. what are people saying? michael: the correction was overdone to put it simply. the short volatility trade blew up. a lot of funds have to cover their positions and so what you can. it was obviously overblown. i think the higher interest rate is not going to go completely -- go away completely. there is still this concern. we overshot on the downside and getting back to find a market balance where the market should belong. julie: on that point earlier, we talked to lori, the head of the u.s. equity strategy at rbc, and she talked that there is a little bit of a nuance between these inflation data points, that when you are looking at wage inflation, that is something that directly affect company bottom lines, whereas if you are looking at just the rates increasing, it compresses

the valuations but not necessarily the corporate profits. i am curious from your perspective what kind of nuance you were reading from the inflation data and the race action. michael: the inflation data was obviously pretty good, but we have been exciting that. when you look at things like the break even treasury inflation protected or tip securities, it basically was saying we are going to have about 2% or 2.1% inflation on average over the next 10 years. the fact that we are getting this 2% inflation number is not a huge surprise and it seems sustainable. one of the reasons why, and joe noted this, one of the reasons why you have seen lower yields today is that what volatilities come down. one of the things that markets hate, particularly with the yield curve as volatility. you have lower volatility, lower real yield, and that brings down the 10 year yield. joe: so where next?

can this continue to emerge higher? what do people see as a potential topic? michael: long-term rates, we are a range so we may have a chart of this get what tends to happen is a good the very big moves and in the market settles down for some period of time. three months, six months, maybe a year. we can see a long time where rates are between 2.6 or 3% or something like that. we may have just seen the top of the range at least for the time being. scarlet: i think we have a chart that you are talking about. their it is -- there it is. what you were referring to, building the new range. does that mean indeed 3% is the top of the range? michael: on a technical basis -- 2.95 and 3.05 is the range. getting to those that of levels would not be a surprise for the market. the question is, do we break

that? if we hold there, you can see the range. joe: i wondered if this massive supply of treasuries coming in the pipeline was sort of overshadow the technicals to some degree. >> it certainly has the potential to come up and i think that is more of a relative value. what the treasury department is doing is issuing a lot more two-year and three-year notes. i think that is where you can wind up seeing the repricing. today is a perfect example of that where you see 2-year note's did not do much of anything. you have a rally in 10 year yields because of lower volatility. you can continue to see curve flattening with two and three year note yields continue to climb. scarlet: we don't want to leave you out, mike. you also brought a chart for us about valuations and how they are coming back to earth. walk us through this one. 8606. michael: this is interesting. just pointing out you see the line going up, straight up. that is earnings estimates for 2018. the line coming down is the

valuation of the s&p 500. really, the competition of higher earnings estimates and this correction in stock has really brought valuations down. to go back to your point, higher interest rates, higher inflations, the text with idea -- textbook is there will be a suppression. joe: this week, all of the wason or the height -- hype about economic data. what are you searching for next? what is the next catalyst? michael: i am kind of a broken record on this but i could like we will be hearing a lot of buyback announcements. we may have to wait for the next earnings season, but i think people are really going to start waiting for that in the spring quarter to see where all of this tax cut money is going. asking: we started with about his local headlines and whether they had an impact on today's market. the you see the profit of more political headlines if there is another shoe to drop to impact the treasury market? >> i think there are big

questions as to, are we going to get a protectionist kind of way going on that might slow down economic growth or potentially hit inflation? so we wind up with aluminum tariffs and the like. certainly some producer prices. one of the things i often look at is the difference in court producer prices and court cpi because that has a good relationship over time with margins so if you wind up seeing producer prices going up, that can had margins and potentially risk assets. scarlet: things to watch. thank you so much. mike leaves covered for bloomberg markets live. coming up we will bring you an exquisite conversation with dallas mavericks owner mark cuban live from the nba tech summit in los angeles. from new york, this is bloomberg. ♪

mark: i'm mark crumpton with first word news. special counsel robert mueller and his prosecutors have not concluded their investigation into whether president trump or any of his associates helped russia interfere in the 2016 u.s. presidential election. that is according to a person with knowledge of the matter. the person said today's indictment of the st. petersburg-based troll farm and 13 russian nationals should be seen as a limited part of a copperheads of investigation. excited toork is continue for months and also includes examining potential obstruction of justice by president trump. hasf of staff john kelly ordered changes to the white

house security clearance process after allegations against rob porter. porter's staff secretary resigned last week after two of his ex-wives came forward with allegations of emotional and physical abuse. porter has denied accusations. the wake ofat in the porter scandal, we should and in the future must do better. the first funeral services were held today for the victims of the florida schoolchildren. mourners gathered at the star of david memorial gardens in north d l to pay respects to an 18-year-old and 14-year-old. another funeral is scheduled for sunday for 14-year-old jamie gutenberg. saidda sende senator outside the high school today that he is continuing to work for changes in gun laws. senator nelson says the florida legislature also bears some response ability, adding lawmakers could outlaw assault

weapons in the state. >> maybe this will be the turning point. maybe the students speaking out so boldly as they have on national tv, maybe the parents crying out and speaking so , maybe thisey have will be the turning point because in fact enough is enough . mark: he also can't president trump to change his position on assault weapons and background checks. you and secretary-general antonio guterres called on policymakers "not to miss the opportunity of a peaceful resolution to the standoff over north korea's nuclear program." he said a military solution would have "catastrophic" cassoc consequences. >> i believe the united states is ready to do so. some statements by the vice president demonstrate that.

it is essential to keep the pressure on north korea and convince north korea it is absolutely vital for them to come to the table and be able to find a way for the peaceful movements to be possible. mark: nato secretary-general warned that "all allies are now within the range of north korean missiles." 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: we have some breaking news crossing the bloomberg. the owner of winn-dixie, a supermarket company, is preparing to file for a potential bankruptcy as early as next month. this is according to people with knowledge of the matter. as part of that, we don't know whether it will be before or after the filing. bi-lo is planning to shut 200 winn-dixie stores. this is again possible

bankruptcy filing by winn-dixie owner bi-lo. as part of that move, winn-dixie would shutdown almost 200 stores. this bankruptcy filing could be as early as march. we will bring you any further developments as we get them. julie: "what'd you miss?" industry leaders in sports media today,h will converge and i are already converging in los angeles for the nba all-star tech summit. team owners, athletes, and investors will give their take on the latest tech trends, including the sports, digital -- esports, digital instruction. cory johnson is there standing by from the event with an exclusive interview. cory: thanks. onfavorite moment ever bloomberg tv was last year sitting with mark cuban at the all-star game. here we are at another all-star game. the tradition. i have seen you many all-star game's before. last year, we talked about the press conference from president trump that was making headlines.

here we are one year later with this amazing indictment of robert mueller. want to get your reaction not just because it yourself as a citizen but as a technology leader. you see the use of technology by russia outlined in this indictment to change the course of history. mark: right. my first reaction is, why weren't they? of course they are going to use technology. we market products and there is global efforts to push and influence u.s. citizens, so why would they not try it? as if is, whereas facebook, twitter, google in trying to recognize what is very extreme? it should not have to go to the justice department. where is the ftc? when you do a politically driven ad or any type of a political ad, you have to identify it as a political ad. where is the ftc and catching them as they happen? not like they are going to stop all of a sudden. they are going to be sneaky about it. cory: we know it is ongoing right now.

interesting to read the indictment and see how focused it was around supporting one candidate. mark: yes. obviously for whatever reasons that we do not know to this point, they wanted to support president trump and get him elected. it would be great to be a fly on the wall and human vladimir putin had to say about him. but i don't think you can expect anything different. i don't think it will ever change. i'm guessing that in our own way, america is doing some of the same things in russia. cory: you think the responsibility of technology companies to do something different and that we will have technology different in the future? let me offer an example. ndr, and tender -- ti that a more responsible thing that gave women empowerment and led to a different conversation around any online. i think that is positive to the future of social media. i hope there will be something after facebook and twitter that will also be more positive. mark: i don't think people will leave those platforms simply because there is so much fake

news and extremist positions. it is incumbent on facebook, twitter, etc., google. anre should be a human, between any pseudonym -- there behind any human, an human pseudonym driven account. there are people in foreign countries that are under authoritarian rule and they want to be able to express themselves, but i think we can use third party identification and verification that is separate from twitter so it is not all unfold by twitter, google, facebook, or whoever so you can enable those folks or someone who is in an embedded situation or unfortunate situation to communicate with a pseudonym and anonymously get help. there are technical opportunities to do that. i think twitter and facebook have to take responsibility. it is in their own best interest to do so because it is not like

the russians were spending tens of millions of dollars a month. cory: looks like it. mark: looks like they were spending tens of thousands a month. ridiculously small amounts of money. correlation is not causation so we cannot say it had a dramatic impact because as extreme as these accounts may have been, so was the organic campaign. cory: why wasn't facebook or twitter instructed from the get to work with them? mark: because 10 years ago, 14 years ago, who would have perceived it? facebook started out with just edu accounts to find hot girls. twitter was at sxsw. i don't think anybody envisioned it going to this extreme. it is a law of unintended consequences. if twitter, facebook, google, etc. don't take a stand to start a deal with these issues, then for better or worse, they will be forced to. cory: but your earlier contention is the lead know what is going to leave the platform because of fake news. mark: i'm talking about a

government perspective. we see what is happening in government right now. everybody wants to take a stance to protect their team. there is already all of this animosity about russia in congress. why wouldn't the republicans in particular say, ok, facebook, we are going to make you deal with this, or there is going to be conferences? -- consequences. twitter. i could be wrong but it may be bipartisan. facebook, twitter, what are you going to do? cory: when you look at this as you do a tv show about investing -- mark: right. "shark tank." cory: a very active investor. when you look at investments, do you try to look for investments that will look at a new era of social media? mark: absolutely. i've got text messaging, emergency protocol. there is a company out of the u.k. that analyzes and spits out

what we perceive to be as incorrect or fake news. artificial intelligence. cory: explain the company. mark: i give you going to ask that. -- i knew you are going to ask that. cory: you brought it up. mark: i know. it uses analytics. a whole series of analytics to determine the likelihood that something is fact-based or not. we are talking to google. we are talking to facebook, i believe. i don't believe we are talking to twitter. and there are others doing comparable things. it is never going to be perfect but i look at it like porn. cory: can't wait to see where this goes. mark: on youtube, you do not see porn every two minutes. the community notifies them. they have humans that intervene. cory: they could not figure out who is behind it, but they figured out how to cash the check. mark: yes. cory: at some level, there were

efforts to make the system work. yes and it is typically human intervention. there are people who go through and look for the worst of the worst on youtube. i don't think they have done that on twitter or facebook. i think they will have to start having human intervention. cory: going forward as you look at these investments, are these seen as things that are not as big a platform as other things you have been involved in, like the mavericks, yahoo!? mark: it just depends. you hope they turn bigger than that. there is opportunity. i don't know necessarily that there will be a replacement social network. i think there are certain things that those mainstream networks are going to have to do. for the most part, facebook is ubiquitous. youtube is ubiquitous. twitter not so much, but it is still a big force the media. so they are going to have to take steps. i don't think you can just invest around them and say let's hope twitter buys this or twitter licenses our technology.

they have the sense that they have to do it themselves, and i think they are right. cory: let me switch topicscory:. in the hallways we were talking about cryptocurrencies. you are saying it is old news already. mark: blockchain is a given. it has been a given for a long time. now with the pricing and the daytrading of cryptocurrencies, a lot more people are interested. there is nothing dramatically different about what has been going on with blockchain three years ago versus now. it will continue to be a component in software development. there is a lot of improvements that need to be made to bitcoin to improve transactions. cory: bitcoin transactions are taking 20 minutes. mark: they have sped up considerably. ethereum has their own solution as well. they can speed up transactions. i don't see that being a long-term problem. it really comes down to, where will the adoption be?

and whether future blockchain utilization will use the public blockchain or public bitcoin blockchain or ethereum blockchain to develop contracts or use their own. some all of these ico's, of them are ridiculous, but some are interesting. i wonder what you think about the single use case ico's as opposed to using the currencies. was seat first ico licenses for football and basketball. right? you bought a license which gave you the right to do something else. effectively that is what an ico is. o and it givesc you a token. if you believe the token has value and there is value in you do it. cory: it could be a leaky storer of value. mark: yes. i have invested in two. mercury, which i am not hyping.

and unicoin.i am not typing either. i will use my gmt to use for social network. cory: eligible. mark: eligible meaning i cannot gamble at all right now. cory: because you own the mavericks. mark: because i own the mavericks and it is not legal in the united states. unicorn is used globally. where i have seen a value in owning the token so i can use it, i have been a participant. i have not even considered whether or not -- i have not looked to see the value. cory: mark cuban, thanks a lot. back to you in new york. julie: that is bloomberg editor at large cory johnson with mark cuban ending their discussion on cryptocurrencies and initial corn offerings, which is still quite a hot topic despite the condo in some of the cryptocurrency prices. bitcoin recovering a little bit over the past week along with the stock market. scarlet: speaking of a come

down, there is a come down inequity prices as well with the major indexes ending little changed on the session. a little rapid drawdown in the last 15 minutes of trading led us to a little change in the nasdaq s&p. the nasdaq off by a quarter of 1%. we want to take you now to mark barton for a check of the first word news because some of that news was perhaps what pressured equities. mark: thank you. special counsel robert mueller today unveiled the details of a widespread and coordinated campaign by the russians to influence the 2016 presidential election in favor of donald trump. indictment disclosed today in washington, the equity u.s. attorney general rob rosenstein described a sweeping years long multimillion dollar conspiracy by russians aimed at criticizing hillary clinton and supporting senator bernie sanders and mr. trump. >> this indictment serves as a reminder that people are not

always who they appear to be. the indictment alleges the russian conspirators want to promote discord in the united states and undermine public confidence in democracy. we must not allow them to succeed. mark: the charges are the most direct allegation to date of illegal russian meddling -- excuse me. attorney general jeff sessions is ordering a review of the justice department's processes after the fbi failed to investigate the florida school shooting suspect to be plotting an attack. sessions said today the shooting that killed 17 people was "a tragic consequence of the fbi's failures." he said it is now clear that the nation's from your law-enforcement agency missed warning signs. the fbi acknowledged it missed actions on a tip hotline that nikolas cruz had a desire to kill.

meantime, governor rick scott has called on fbi director christopher wray to resign. construction work is underway in syria in one of the cities that th suffered one of some of the worst distraction. later this year, syria's government is expected to launch the first government organized effort to rebuild three neighborhoods. the reconstruction is a to cost about $200 billion and take 15 years to complete. the nasty flu season, which has been worsening for months, may finally be leveling off. the centers for disease control and prevention said today that one out of every 13 visits to the doctor last week was for symptoms of the flu, which i assure you i do not have. that is still nearly as high as it has been in a decade, but no worse than last week. this is the first week without an increase since november. 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. now for julie: nothing a little hot tea can't help. "what'd you miss?" a uniform payment to all of the nation's citizens. the idea has not garnered much attention at the federal level, but it has already been used in alaska for decades. and thet is a professor co-author of a paper exploring this issue. he joins us now to discuss. thank you so much for joining us. first of all, talk us through exactly how this system works in alaska. where they get the money from, presumably from the oil industry, and how it is distributed. >> sure. in the 1970's, alaska discovered reserves of oil. some of the revenue that came from that would be used to put into a permanent fund.

starting in 1982, they distribute some of that fund to residents of alaska each year, so if you live in alaska for at least 12 months, you are entitled to receive a payment every year. in recent years, it has been as big as $2000 per person per year. julie: all right. so the fear is that if you make payments like this available, that will disincentivize people to work. what did the alaska experienced show? what did it prove? damon: we know from previous research that if you give someone a lot of repayment, it will make them less likely to work, but the question with alaska is what happens when you pay everyone at the same time? so we looked at alaska before and after the introduction of the permanent fund dividend. what we found was there was not much of an effect at all on the likelihood that someone would be employed. what we think is going on is that even though this money may make people more likely to exit work with it is another factor,

which is that when people have more money in their pockets, they tend to spend it. that the economy and offsets this other effect. so no companies would like to hire more people. what we found in alaska is when it comes to employment, this basically cancels out. joe: how confident are you that an annual payment of around $1000 to $2000 is not really enough for anyone to live on, not enough for basic expenses and applicable in understanding to a larger basic universal income? damon: that is a good question. one thing to remember is that it is per person so with a household of up to four people, you can get up to $8,000. what we know from other tax policy like the earned income tax credit is that credits of that amount due matter at least for some people. there are some people who are on the boundary of leaving or entering the labor force. for those people, the question is, could this tip them out?

a moderate sized universal basic income does not seem to have a huge effect on the unemployment rate. joe: can you walk us through your methodology little bit more beyond just looking at the labor force activity pre-and post the introduction of the alaska permanent fund? how else did you test your theories in alaska? damon: so what we needed was a control group.we needed something that was comparable to alaska that we could compare alaska to. what we did was we took a collection of states that if you average them together, they look pretty close to alaska in the period before 1982. once we found that group, we matched them up to alaska and compared them to after 1982. we looked over three decades or so. what we found was this comparison group had very similar employment rates to alaska over that period. scarlet: professor, you said there was no significant affect hasn't won negative on employment as a whole but

part-time work, you noticed some distinctions there. walk us through what you found. damon: we did find there was an increase in the likelihood of working part-time. so what that could be is that even though people are not leaving the workforce, they could be scaling back their hours some. there is another possibility, which is there could be some people who were not going to enter the labor force and now this extra income allows them to potentially take a part-time job. if you need to hire someone for childcare, this to be enough to get you to enter the labor force. those are two possible ways that a part-time rate could have increased. scarlet: i am curious. this is outside the direct purview of this particular paper, but what are the general benefits of doing this kind of model? were you able to formulate an opinion through your research as to whether it is a good idea were not? damon: that is a good question. some of the benefits of a cash transfer is that it is unconditional.

wouldersal basic income not be tied to any particular use or outcome. we find that when you give people cash, they tend to know where to put it to, where it is best to. buy having no strings attached, you might find that that might be a good transfer to give to people. it can help reduce inequality, and there are some questions. couldn't reduce people's likelihood to work? we did not see an effect at least this size of a transfer. some other things we like to know is what happens to the rest of the economy in terms of prices? that is something we would like to look into. the final question is, how do you pay for the basic income? so you have to pay for it some way. you can either raise taxes on some people, or you can lower spending in some areas. opinion, form a final we like to look into some of those questions. joe: a lot of interest in this area.

i know there is a bunch of experiments around the world and different private sector and public sector things to look into this further. is there any that you in particular have your eye on to give further answers to some of these questions? damon: yes. there is a lot interesting studies taking place in the u.s. and abroad. by a is one being done company based in california. their study will have a large sample size any meaningful payment so it will be interesting to see what they find there. there are also some other groups. for example, the city of stockton, california, is piloting a project where there will also be giving universal basic income. we are going to be keeping our eyes on those studies moving forward. scarlet: damon jones, thank you so much. damon: thank you. joe: coming up, only five months until mexico hits to the polls to elect the next president. beinge country elites

caught flat-footed while someone rises in the polls? we will go to mexico city, next for that story. and get involved in the conversation. send me a tweet. here is my feet. random chart, random jokes. check it out. this is bloomberg. ♪

scarlet: "what'd you miss?" with five months to go in mexico's presidential campaign, one has a sizable lead in most polls. yet the country's business and financial elites seem unimpressed, discounting the likelihood he can win. risk?they taking a

our guest, finger for joining us. that howous is he popular is he has been reportedly meeting with business leaders and executives from jp morgan or citigroup? >> hi there. yes, he is trying to tone down his message, but there is a lot of questions about key factors, including energy reform, which offers he wanted to completely undo. a huge airport project that he is talking about dismantling. speaking of elections that no one is prepared for, there is a comparison to trump because people were not expecting necessarily at this stage in 2016 a win by trump. in mexico, there is more denial because the polls are showing him nine points ahead of his nearest rival and still the markets have not priced it in. joe: ok, back up.

what specifically is he saying he will do? >> on energy reform initially he said he wanted to cancel this landmark law to open the energy sector for the first time for private investment. he has since liked and his tone and said we will review the contract. some of the people in his cabinet say, fine. the problem is you are not clear what he would do once he gets in office if he wins. there is just a lot of in the air on the energy reform specifically. and then on the airport, it is a $13 million project. he said he wants to dismantle this huge construction site that is already underway so he can move the product to a cheaper site. but investors are worried what would happen to all material that has already been spent, the debt that has been taken out for this new airport project.

julie: we have a chart here looking at the index, the stock market in mexico, versus the emerging market index. it has not been outperforming, although not by a huge margin. i am curious where the polling is right now and where investors are putting the risk that they are not pricing in a high enough chance that he actually could be victorious. >> well, for the investors who are paying attention, we are hearing forecasts of as much as a 15% dip in the stock market if he wins the election. we are also hearing about peso volatility. it could be -- we can see a drop of about 7% in the peso. it could be a very drastic drop although once we see how he implements has policy, only once

that happens can we really see how poorly the market will perform. scarlet: what is interesting about him is he went in 2006 and 2012 and was defeated each time. you mentioned he has changed his tone a little bit when it comes to the statement oil company. has his message overall changed since his previous runs? or has the environment changed and therefore voters receptivity and reception to his platform changed? >> that is a really good question. i think it is more of the latter. because of people changing their views, you don't see the protests in the street that you have seen 12 years ago. he has also had to come in and modify his views, especially because he is talking to businessman. more and more with ceos and people he did not have the access to 12 years ago. he has kind of learned and grown in that area, but investors are still wary because they don't know exactly what he is going to do when he gets -- if he gets into power.

it is still not clear. julie: finally, i would like to ask you given the news in the united states today with robert mueller unveiling these indictments alleging all of this russian meddling in the u.s. electoral process, what is going on in mexico? is this a topic of discussion? is being investigated as well? nacha: really good question. was here-- tillerson talking about the possibility of russian meddling. there have been some lawmakers in the u.s. that have talked about that possibility or raised that concern, but in mexico, the mood on the ground is they really don't have proof. they are not really concerned about it. the way that people are worried about the meddling specifically would be to give a lift to salvador, and he actually scoffed at it, made fun of it, and left it off and the people do not seem to mind. scarlet: sounds familiar.

thank you so much. appreciate it. next, how do you transition from professional sports to professional investing? we talked to baron davis, former athlete and karen venture capitalist. from new york, this is number. ♪ -- from new york, this is bloomberg. ♪

scarlet: the nba all-star technology summit in los angeles brings together big players in the league with investors and tech entrepreneurs. earlier, cory johnson caught up with former nba player turned venture partner at plus capital baron davis. they started by discussing the move from the hardwood court to the suites. was supportedand

thing has been to sit back and listen and be a listener. years, justt three really listen and absorb as much can to figure out what you want to do. the good thing is we have social media. so you can activate your brand at any moment in time. the nba has been great about how they share the content of retired players and things like that. cory: what is your brand? great point guard. one of the best dunks ever. me, myfor me, it is boy, my family that you will see on my social, but it is also the business i am doing, the production. you see that in the daily fabric of my life. and so whether i am picking up my kids from school or going to the office, working on the coming, youthat is see all of those aspect of life as a committee and team.

that allows you to have more freedom to really rely on other people when you sit back and listen. cory: you work your whole life to become a great college player, maybe, or get to college, you work even harder to get to the league and you are league and work so hard at this thing, and then when nothing is over how do those skills apply to building a media company? what is the skill set that you developed as an athlete that translates into a post athlete athletic life? me, it has been using basketball as a resource in a tool for understanding business. as a point guard, being the master connector, so i think that is my skill. i listen. i learned from people, and i am always trying to partner the right company, the right brand, or celebrity with the right company, so i am always looking for opportunities for other

people the same way i would on the court looking for opportunities for somebody to get an easy bucket. cory: that is interesting. talk to me about this conference business. why conferences? baron: for me, it was looking at having a company, going out city this tour raising funds. it is tough for an athlete because you have to get people out of the notion that i am not playing anymore. i am here for business. having this big summit, it was an opportunity to showcase athletes, creatives, musicians, the people we don't normally listen to. give them a platform to speak about their wins, successes, and ancillary businesses that they have and start to pair that with vc's and influencers and people in the financial space to really

start to bring about a real network and education forum where we can all have an opportunity to build and learn from each other and help each other out. cory: all-star weekend. i cannot convey to people what all-star weekend is, but it is a gathering of a certain group of people. last time i saw you was at the all-star last year. people come together for this event. baron: it is like a brotherhood. the entireantly, all-star weekend is really like your family reunion. you have the business family, which is the nba who takes care of everything. you have the players, who are like the start kids coming home and everybody wants to see. but there are so many great companies, great brands, and great brand partnerships with the nba and players. it is almost an opportunity for everybody to get together to talk about what the next rollout of the year is going to look like, what the next all-star weekend is going to look like, and also an opportunity to let

your guard down and have fun. cory: it seems like an opportunity for you to find -- to make the connections and make the right investments you want to make, but what are the investments you want to make? baron: for me, you know, i look studios, sports, lifestyle, court cultur. looking at young production companies, young kids that don't have channels a platform and talent in this new digital -- young kids that have channels, platform, and talented this new digital age that allows people to do documentaries, short form content. really from a studio setting, but looking at the culture. looking at all the elements of what big corporations are trying to do when they died into sneakers or fashion. let the fashion and players and talent talk about who they are.

i think that is what we are building with our studios. we are looking at production companies. we are looking up partnering with other athletes, other artists to tell their stories and really be a vessel and vehicle an outlet for them to be able to make those stories and those things happen. julie: that was baron davis. scarlet: it is now time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. anthony scaramucci's agreement to sell his stake in sky bridge capital is inching forward. a person familiar with the matter says the national security panel that reviews foreign takeovers of u.s. businesses has accepted the sale for review. scaramucci first agreed to the deal more than a year ago as he was chatting is this conflicts to take a job in the white house. trading on three crypto companies has been suspended by the fec.

they are suspended due to questionable business models and asset valuation. the sec also reiterated its anding to investors companies certainly focusing on cryptocurrencies or blockchain technology. that is your business flash update. julie: pretty obvious. we have been talking about it for a while. joe: coming up, what you need to know for next week. this is bloomberg. ♪

scarlet: "what'd you miss?" u.s. stocks kind of stumbling, losing steam into the close, but it was a good week overall. coming up, don't miss monday as presidents' day in the u.s. and the stocks and market are closed. joe: i will be watchingjoe: the fed releasing fomc minutes 2:00 p.m. on monday . scarlet: the u.k. releases its numbers for gdp on thursday. that is it for "what'd you miss?" "bloomberg technology" his next. -- is next. joe: have a great weekend. 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. deputy attorney general rob rosenstein today announced the indictment of 13 russians and

three russian entities, saying they meddled in the 2016 u.s. presidential election. elections are charged with stealing the identities of u.s. citizens to fraudulently buy ads on social media to sway public opinion. plenty more on this ahead on "bloomberg technology." the fbi today it' this was that it failed to follow up on a 10 on the alleged shooter of the florida attack on a high school. the public tiped line on january 5 two report concerns about him. florida governor rick scott has called on fbi director christopher wray to resign. chief of staff john kelly has ordered changes to the white house security clearance process. he released a memo today calling for the fbi and justice department to hand completed background checks to the white house counsel office. after formers staff secretary rob porter was designed under domestic abuse allegations.