>> what did you miss, stocks lower. wants to pick up the pace. driving the 10 year yield at 297%. i am julia chatterley. joe: i am joe weisenthal. scarlet fu is on assignment. and -- [laughter] we want to welcome you to the closing coverage every weekday at 5:00 p.m. julia: let's begin with market minutes. a look at the individual performance. as you can see from the federal reserve, and this was an any can see the snapshot. point 5%, the s&p 500 lowered by .4%. have -- we did have tech stocks outperforming earlier on. some of the weakness that we saw.

seeg headlines, and lightfoot we saw yesterday at&t comcast proposal for 20th century fox, and all ca proposal for the 21st century funds. what we got through at&t yesterday, the proposal at $35 per share. obviously, battle for 21st century is active between disney. that we were expected between obviously, battle for 21st comcast, just for here, eastern time. marginally higher on two-year yields moving up 2.75%. 2.97%, theyd up

were about 3% at one point. with theing markets yout end of the em curves, can see they're moving significantly higher on the day. at 2%, and the 0year intraday e how will not all that hawkish than kiss press conference emphasizing multiple timest he is not ready to declare victory on inflation. language like that tempering moves. 2.97%. yield at you can see the rally we saw in the u.s. dollar which tells the story as far as the press conference is concerned. calibrateay powell that they can hike four times this year. the art technology improvement in the economy and hold your

horses as far as real fundamental shift in terms of the hawkishness of the fed. them to give you a snapshot of what we saw as far as the cost rate with the u.s. dollar. yet the european central bank coming tomorrow, and you have to wait for it as far as that is concerned. relatively unchanged overall for the dollar-yen come and i want to give you a sense because you talk about a more hawkish fed, and you have to watch what is going on in emerging markets. it is a torrid time in the last few weeks. you can see the argentinian down shy of 2%. you can see the turkish lira and the philippian peso. and the russian ruble. joe kennedy's by one of the out performers. joe can explain one of e

out performers. -- i rememberdest the good old days when gold used to move and even on based the fed is acting and all this stuff is moving, little actire. it hasto look at lumber, been fading lately and has been at a six-week low. you see a straight up line for most of the year and finally vi ground. something to watch their. re. contextet's get some with the chairman who works at the federal reserve bank and th w york state banking department. who better to have this afternoon. at the face of it it was a significant upgrade given what we are pricing in terms of this year. of said weell kind will recalibrate and we haven't won the battle on inflation in particular. >> in the context of the way,

credit swings, the immediate result -- quarter-point today and two more moves anticipated by the fed, completely consistent with what we would have anticipated. directionally, the rest of it also fairly consistent. we might have thought to moves next year and they are thinking about three next year, it hasn't happened but we will find out. more to the point, i think what powell is trying to convey is the idea that yes, we are calibrating monetary policy, not new news, we ve been doing that since lifting off from zero some years ago. and we're not doing this with the hope and expectation of halting the economic expansion and just keeping pace with it. that is not bad news. markets will do what markets do. emerging markets are idio

syncratic. countri with more difficulties and others not. commodities ought to do well were no central bank is trying moowe wi see thath. one e as well, taking a hawkish step but not with a hawkish intention, if you will. julia: i want to date into the details of what we heard from the federal reserve. stick with us because i want to talk about the news we got from comcast and the bid we are expecting from 20th century fox. $35 per share deal. ring in paulpolicy w sweeney. this is a real bed --

bid. this is a real premium to disney's deal that was valued at $28 per share in stock. the question now is what wl disney do? the expectation is disney will clear it be a better in this process and theyorore than comcd they will be making a counter bid relatively soon. joe: comcast shares are off 2%, and they were already off today. debttors anxious about the the company will have an the risk of such a massive deal. paul: this deal will push the balance sheet more than four ebeta.heir you b they have a tremendous initial

model at comcast and they know comcast has lived thereefeand te equity shareholders is, is this what signed up for when i signed up for comcast? a video business, broadband business, nbc universal, and i expect them to double down on the content side of the business. and that is what we are seeing on the weakness in the stock. and the big move comcast are making, conversely disney shareholders are saying if there is a long-term competitor to these tech behemoths like amazon and facebook, you have to give disney the nod. they have world-class entertainment assets and they are probably best positioned to give these tech companies a go for the next five years. i think that is what is d in the sck. julia: is that this is what you bargained for with comcast, the

environment is changing so fast. the scrapped for assets come up we talked two days ago about netflix and the rise. this envirf fighting for content is what you have to do. you have to adjust. paul: they are saying i have to compete against amazon and google's of the world and there maybe two, ir don't think there are three media companies that believes they can be one of those companies competing. bob iger and walt disney believe they are one of those companies. brian roberts and comcast believes as well, time warner said no, they sold the at&t. murdoch said no and is selling his assets as well. julia: the all stock offer we have from disney, what does disney do now? here,the premium you see

it covers the tax leakage that the murdochs will have in a cash for assets deal. disney i suspect will raise its price. you will go to $35 per share but i think they will play up thathey believed they had a quicker time to close than comcast would have. i think they will play up the fromthat pro forma cpa disney and fox is a better collection of assets. joe: can y explain why the i think the regulatory is going to be massive for both of these companies. i think they feel like they might be earlier but at the end of the date the are going to play up the fact that they have pro forma. rupert murdoch has indicated that he feels more comfortable owning the disney paper than the cash that would come from comcast. whether comcast amends its bid that will be eligible fothe

murdochs, will s. the is the early innings of saga that will play out. julia: in terms of the cash flow benefits and outflow, getting it out there and selling the underlying assets. who benefits quickly? we talk about a situation where rupert murdoch's legacy building here. paul: these assets actually fit well with both companies, both comcast and disney. both companies, they feel like they are one of the one or two players that can vie for this business. if you do believe at you have to have this deal because there isn't much of a fallback position. what say comcast bows out, does comcast do? do they go to discovery communications or other companies out there? areibly, but those

consolidation prizes at best. julia: with about comcast? paul: disney has the ostudiohee out what to do with espn, is it best staying with disneyspin julia: that despite time toders? decide what to do to diversify the business? reason big part of the of doing this d with fox is to get content from the fox television network to put on their direct to consumer offerings disney is launching. they launched espn plus and the are going to launch disney branded content next year. for thosemore content offerings as they go direct to consumer and compete against the netflix's of the world. julia: your view? important they are

matching the reverse termination fee. they are also offering to actually make disney good for the breakup of the deal. $1.5 billion, a regutory issues.ion fee for they also agreed to the same veackages and are sports ks andellinthe other assets that regulators deem problematic in this instance. expressedh family has a stng desire to go with disney, and that is what it is going to come down to. withyesterday the decision at&t and time warner given the green light, is this a perfectly analogal in tes of the relevant law would apply? that this is a slamdunk? is there wrinkles there? nabila: the doj looat the

separately and judge the still on its own merits. the comcast and broadband presence and how big they are in that area, you need an integration of distribution of content. and they also on the means of which these assets are distributed. that is one thing they will look at. the regional sports networks as well. fora: to the extent of debt comcast and e impact thi ultimately have. what pointa bidding war create a dilution to earnings? paul: we did analysis on the earnings and the current price, we are assuming $2 billion, which is a big number to assume. it creates a free cash flow, but much above -- but values at $62 billion. than if it is at $70 billion it

becomes dilutive. joe: how fast is this going to move? nabila: fox has to assess to offer and dean a superior -- deem a superior. disney will always have the last say if ts goes a few rounds. pa: this is going to be back and forth and i to pick either player is going to walk away. at the and of the day it might be disney to lose because they have to last right, but this feels more strategic for them just on the margin. julia: cap and mouse game is what you said in your article -- cat and mouse game. thank you both. let's get the first world news with mark crumpton. mark: the head of the un's refugee agency says a bitter fight of which european country should take in a rescue boat

carrying hundreds of migrants in the mediterranean is a disgrace for the eu u he spoke to reporters about the dispute involving france, italy, tiringand sinhis six and a nine migrants left from libya. theres a ashamed both roaming around the sea and that doesn't have a port for it to go to,w there is. untilabout the divisions, you have the divisions will not have a solution. mark: spain offered to take in the aquarius after others refused. is at aspecial envoy on mars leader in an effort to smooth relations in the wake of the rolling the crisis.

crisis. toy forced 700,000 muslims flee the homes and take shelter and refugee to flee their homes and take shelter in refugee camps and bangladesh. officials call the military response ethnic cleansing and suggested it had post, the hallmarks of genocide. agela merkel is facing showdown over the feet over immigration. the country's interior minister is proposing turning refugees back at the border as part of a 63 point plan to crack down on illegal migration. ilian austrian german a immigration. angela merkel said that she wants a solution for all of europe. -- former fbi

director andrew mccabe is suing the former justice department saying it is refusing to give documents related to his firing. they withheld the information out of fear of the additional legal acti f it it comes days ahead of the justice department inspector general report. it is to criticize a senior fbi officials during the hillary clinton email investigation. global news, 24 hours a day powered by more than 2,700 journalists and analn more than 120 countries. i am mark crumpton, this is bloomberg. >> let's get back. the vice chairman who worked at the federal reserve bank of new york, thank you for waiting patiently. what we are seeing in terms of this point of the cycle in terms

of steel activity but also want to get your thoughts on what we just talked about. we will get to the fed. >> i have no particular opinion about the fed action. it is interesting that one of the phenomena of recent years has been the issuance of corporate debt to retire corporate equity. nt companies are riskier, of the but it makes the financial system safer. payment,your interest it is a price earningspl one. to cover the price-to-earnings multiple, it is a larger number. one of the things i expect that is reasonable is now that it seems to be a more open attitude expressed by the court towards a certain type of mergers, there'll be more of them. that is what we saw.

probably some greater issuance burden in the investment-grade corporate bond et that is going to be worth watching in terms of relevant performance of asset classes and so forth. a we see the fed tracing tightening part of the cycle. >>hat is great angle. today's of that announcement, two interesting things happened . offrman powell started thank you going to give a plain language assessment of the economy talking to the ame people. and then starting next year, every meeting is going to be press conferenced which means every meeting will be live. what do you make of the changes? the first change, every time the chairperson speaks,

they speak their native language. language wass academic, anlabor economist language. not not think that she did think she was speaking to the american people, he learly speaking his language. i think moving towards the press conference at every meeting has exactly the effect use adjusted. -- use adjusted. -- you suggested. it makes more real the every meaning is a meeting and thth are starting in january reinforces that. two more moves and two more press conference at, it is kind of suggested that we know those moves are contemplated. a there was an interesting, couple of times -- if you lk at the market reaction, rates

are higher, equities are down, but a number of times during it, notmphasized that they are ready to declare victory on inflation. there were some dovish notes. i do not think the is any intention there and i do not think we will see any intention expressed by the ecb to bring the business expansion to an end. we do not have a problem with growth,to too much inflation come are too many job opportunities. the legacy of the last decade is you do not want to flirt with the downside anyway. i agree. i do not think the market reaction was all that extreme. >> no. >> we have had 10 point days in the s&p before. i do agree with you. the tone he was trying to express was more reassuring rather than hostile.

>> is this a good thing? have we got to the stage where investors would look at what janet yellen was saying, the fed would rain in a bit. here that there is a new sheriff in town? >> i would say two things. putt, buttill the fed the strike price may have moved further away from current levels. [laughter] facts on thee ground have changed. chairman powell is dealing with -- if noty is full employment, closer than janet yellen, and that puts you in a certain frame.

that was what he was trying to express about policy -- nothing but policy really changed, we just reached a different stage of its implementation. th why the ford guidance that previously said, we are going to keep rates lower than neutral than whatever we mean by that, no, we are not. evolved differently. if it were to falter, i do not think they would stay on this prepackaged path. the next big iteration is to involve the balance sheet adjustment. >> interesting. thank you so much. chief security vice chairman, thank you. spearheaded a movement to an overlooked medical problem for women.

it depends on who you ask in the pharmaceutical industry. ownership, herd controversial drug, dubbed the female viagra, is soon to come back on e market. fascinating one. give us the history of the female viagra drug. it was bought and went nowhere far, and now, she bought it back. >> the way back and history story, this was a depression drug. the company that was developing it found the side effects and decided to study it as such. cindy and her husband bought it and got aned it, oved after a lot of controversy. people were saying it was not real. approved, theyit

sold it to valiance. the company iant. thet to val company did not have resources to put to it. get settled a lawsuit to the drug back. they are ting it back to the market for the second time. flop under total valiant. you said they did not have the resources? there are also issues with marketing it. >> they are bringing get back at half the price that valiant was charging. it is impossible to know without being inside the room, but it is part and parcel with new drugs and new therapeutic areas and insurances dealing with them.

some insurance plans said you by ato get prescribed psychiatrist. things like that that accompany now dedicated to the drug are going to do a lot more work. they are going a total different model. they are going to launch it with a different model. that is not what they are doing and they are doing it through telehealth. >> what does that mean? >> if a woman were to think of it she had a condition i wanted to talk to a doctor, there is an independent network of doctors can access through the site, and they can be diagnosed through that portal. it thinking is to keep discrete for some patients. >> calling it female viagra is completely wrong because it works in a different way.

a ghost or some fascinating biases of whether or not this condition even exist. theomes down if whether situation upsets her. i want you to talk about to cynthia specifically. she was annoyed by the fact that it was called this "little pink pill." >> she owned that. first, the nicame was patronizing and it was not doing the drug justice. then she decided, i'm going to start wearing hot pink. i'm going to show up to these meetings and we are going to move forward. what they argued was a sexist establishment view of this condition that we are holding back of the approval of this drug.

bar to creating a higher get it approved. there were debates around why that was. there were a lot of womens organizations they got involved who helped advance the cause. a lot of the opposition is led by women, so it is a very interesting debate. >> when you talk about the marketing, people know what the viagra and other erectile dysfunction ads look like. are there going to be any ads or omotion or is it going to be all people to seek it out? >> not right out of the gate. perhaps over t w pursue that. their original ame was that they would not do consumer advertising, but they are more likely going to go through the word-of-mouth, education spreading, recognition of the drug spreads through the

community. >> there is a brilliant quote from an associate professor of psychiatry at johns hopkins university and the impact he believes this could have on ,oit is absolutely brilliant because i'm not going to say it on television. thank you. care reporter,h cindy kunz. let's get a first word news update. >> house speaker paul ryan says president trump should be applauded for his meeting with north korean leader kim jong-un. utionedsted that that the next steps will not happen quickly. a republican retiring this year toldeporters, "the president quodisrupted the status with the historic meeting in singapore." saudi arabia all and united have announcedes

the biggest assault of the civil out whohe city to drive to rebels -- houti rebels. plan and includes establishing routes for food, medical supplies, and oil in saudi from cities arabia and united arab emirates. qatar's king received foreign minister and says that provide king will 10,000 jobs in the capital as well as a packet of investments targeting infrastructure projects. the aid's worth of some 500 million u.s. dollars. u.s. national team did make it to moscowor the world cup, but the governing body of the sport handed out a consolation

prize to the north american region. the 2026 tournaments will be in north america. >> canada, mexico, and united statesank you so very much for this incredible honor. with you for entrusting us this privilege of hosting best world -- the fifa cup in 2026. will hold 60 of the matches of the 80. the finals will be played in new jersey at the metlife stadium home to the new york giants and jets. global news, 24 hours a day powered by more than 2,700 journalistanaltsn more than 120 count i am mark crumpton. this is bloomberg. >> let me give you a recap of the market action. clearly dominated from what we

got from jay powell in the federal reserve, increasing the amount of perspective rate hikes to four. bydownplayed the hawkishness the market. we got a choppy session. down by 1.5%.ow the nasdaq is outperforming. the real waste in the session, down 4.5% and that is why we hone in as well. the at&t and time warner decision, waiting forom matheir offer for the asset 20th century fox and they did that 4:00 p.m. eastern, topping e previous proposal from disney. they are providing an all-cash offer reflecting a $55 billion value -- $65 billion value.

a 19% premium over the disney offer per share. how long does it take for disned what's you miss? the court rejected the department of justice's argument that the at&t and time warner merger would hurt consumer choice and lead to higher cable bills. but the target was the issue. that is what bloomberg opinion columnist says and he joins us now. >> nice to be here. >> you are saying it is politics. perhaps, you would not have made in a different light. >> i'm not saying it is politics, i saying it is down dumb.- it is [laughter] >> we do not know the president picked up the phone and said go after that deal because i hate cnn so much.

he is on record as being against the deal. that a maninly true who is an antitrust expert ddenly fou pblems with the deal when he became the head of the antitrust department. thehe judge showed, arguments were extraordinarily weak. it did not reflect how the world works. they got their head handed to them. >> the real issue is not the setback, but that antitrust is becoming a bigger and bigger deal. >> absolutely. incredibly powerful companies going to need real scrutiny and a lot of people are calling for it. >> i think it is a big setback. it is going to make them nervous about going after the next one. if comcast -- we had a deal about 15 years ago.

succeed in getting fox, that is worth -- that is a horizontal deal. that deserves real scrutiny. out in silicon valley, the n haaso take over a company, that deserves real scrutiny. more difficult deals than at&t and time warner. it is basically the blind leading the blind. app isbook buying some not going to be perfectly this deal, but is the setback a big enough that it really harms those efforts, or is that it will be gun shy? >> i think it is both. the only way you can tackle big antitrust -- it has

to start to change. the theory has to tighten. it has been really loose since the faintest -- famous book in 1978. the only way you can do that is to be aggressive in court and say, your honor, this goes under usedon 2 as the way we to define and not the way we are defini facebook should never have been , but thaty whatsapp would be a tough argument to make. environment, an and antitrust environment that eould eve -- could evolv and tackle tech. himselfnk he has shown to be someone who is not going to rock the boat in terms of the

-- of this administration. i think he has hurt himself in terms of his ability to make tougher arguments because he made such a bad argument the first time out of the block. this ainistration is tackling amazon. farake the same argument as as amazon is concerned, this is a good thing. >> no, it is a terrible thing. amazon, heafter looks like he is doing the president's bidding instead of independent-minded. >> i am talking about a relative strength of argument case. he has a far better chance of looking at the amazon business than the at&t and building a case there. the judge is clear, it is bad. >> right. amazon is a tough case to make. overtones,onopoly

but it is a tough case to make because it is a classic case and with a change the rules of antitrust to do it. i'm going to go back to what i said because i think it is important. if you go after amazon as a member of the justice the apartment, you look like you are counting out trump's revenge and ignoring the rule law. our entire capitalist system is built around the rule of law. if you start to mess with the rule of law and you start to play this as it appears to be the actions of an autocrat, you are destroying much of what is great about american business. that is a real problem. >> that is a presidential problem. problem a dell regime if he goes after amazon because it looked the key is doing trump's business. -- trump loss of bidding. >> oh, i am good. columnist,g opinion

we will have you back. coming up, the 10 year yield covers -- hovers near 3%. we will havehart. >> subscribe to ouweekly podcast on itunes called "what's d youiss." this is bloomberg. ♪

♪ time for our weekly segment, smart talk with abigail doolittle we take a look at timely topics. abigail, it was all about the fed have technicals cnged on the yield at all? before we take a look at your

charts on the 10 year yield, there's something interesting happening beyond the fed raising rates. e options market, $75 million in calls were bought and that is been calculated to a move up 2.6%. is that possible? >> i could see the possibility. for that andason it comes down to the chart. specifically, it here is the 10 year -- it is a very important level. here at the 10 year yield, the yellow horizontal line is the peak. that was the taper tantrum peak. somee seeing it loses momentum, some of the indicators are starting to the verge. just given the overall anchoring from lower rates overseas, we agree with that view.

as much as we don't like to fight the trend and the trend is higher, the 10-year is due to come down. >> do you think it is a matter of that little area of congestion making any glow and opposite move down to the downside? believe it would line up with the prior peaks. overall, we are expecting more sideways moderation. the high conviction call is that the short end is going to continue to rise based on fed policy and you're going to have a continued flattening in the yield curve. >> it we see a little bit of downside for yield with that sideways chop, what do you think the impact is on the s&p 500? this is a great chart. about aseral, talking the curve continues to flatten and inversion, historically, stocks have posted some of their best returns heading into inversion. from a stock perspective, do not be worried.

the trade action is bullish. here is the s&p 500 coming into this test at 2600. we think you get to break out to new highs. three reasons, the very constructive base building. we have built plex pattern through the course of recent months. within a rising trend. three, very healthy risk management. that new highs shows high beta stocks are outperforming, investors bracing risk, we think maets are bracing higher. >> what might change your mind on that pretty really think we are set to go higher? >> for us, we would give it to leeway. low -- the them a may low, but higher trend,

higher lows, expect higher highs. rather than planning for what could be a near-term pause. >> in a small dip, you would use as a buying opportuni and you have a great chart, the broker-dealer etf, and it is above. >> it is. this is a long-term chart. talking about financials, a lot of questions about it. european financials really breaking down. you are starting to see in ceain parts of the u.s. sector, but overall, we think u.s. financials are fine. one is represented by the security changes etf -- iai. here the long-term chart going over a decade. fourth quarter of last year, we moved above the 27 peak. this was a decade-long breakouts .

-- breakout. a healthy timeg correction, a bullish pattern ahead of what we think is going to be the next leg higher. , and away for, up the s&p 500. that is iai? >> iai. >>hankou. back to you. >> coming up, a conspiracy. new research points to a manipulation playing a part intt year. this is bloomberg. ♪

♪ last year may have

been held by an of elation -- by manipulation. between bitcoins and koetter, a cryptocurrency under investigation by the ftc. there has been a lot of talk for a long time about this controversial cryptocurrency called tether, which is called tether because it is priced at to one to the dollar. in never deviates from a dollar and used as a quasi-dollar like currency on exchanges. what do they claim of the mechanism is? >> professors looked at trading data about the bitcoin. as soon as it hits certain thresholds, round numbers, $500 increments -- as soon as it reached a certain level below that, they saw tether flood the market and then be converted to bitcoin and then push bitcoin and other

cryptocurrencies. arehey say all tethers backed and it is a representation of a dollar being held in a bank. are they alleging there is an artificial creation of new thers that flood into the markets when bitcoin needs the big run-up? >> i think both. they are looking at how the creation of tether is a backstop to bitcoin. in that run-up, and a time its starts to falter, it would start pushing a backup. they do not see it reverse. they did not see as it went up, a lessened. >> supporting the market, basically. because be coincidence this guy has also pointed to other anomalies. could it be coincidence and could he be wrong?

>> these are preliminary findings and that is not yet peer-reviewed. theing at the trading data, interesting part with the digital currencies, there is transparency with how things move around. he was able to look at information to see. there is ntaf w this was done, it is just insider trading. something you look back at the data to see, trying to figure out what the motivations might be. >> is there any other statistics of besides the fact that the supply of tether s expanded at key times on bitcoin pullback? >> that was the main focus. to 87arrowed things down times when this particular instance happened and out of the 87 times, it was responsible for more than 50% of the coin's -- of bi'ri. >> the relative value of these two things are so different.

even the prospect that you are printing tether to finance the purchase of bitcoin does not make sense in this case. >> no. new andet classes so in so unregulated, there is so much going on in terms of potential manipulation. address thepaper fact that the tether price has been so stable and not deviated with a dollar which is hard to square with the idea that they are being manufactured without the doacking? >> it mentions that, but it is more focused on the trading data of bitcoin and tether. there is a lot more debates with a bank -- >> and all those dollars in there. >> is there a theory of why they have been absent all of 2018? >> no. [laughter] >> detls, details. interesting. coverage doesr

some great reporting. i feel like the story is not over. ,> i feel like for the ctfc they are like, where do we start? >> alonga h other tors. thank you. matt robinson speaing ther now it is time for the bloomberg business flash. rolls-royce holdings and said to be cutting 4000 jobs to boost profit margins. the total number of jobs eliminated under chief executive officer for an east -- warren east could be 10000 and 2018. they could bring in an annual cost savings up to $533 million. comcast is offered $55 billion to acquire 20th century fox topping the previous proposal by walt disney. the all-cash offer representing

19% premium to disney -- disney's. u.s. ing to the fifa approved north america's joint bid tot the world cup in 2026. the final game is scheduled for the metlife stadium in new jersey. this is a record $11 million in profits. that is your business flash update. >> coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

♪ stocks after the federal reserve surprised by increasing the number of possible hikes to four in 2018.

entertainment assets for 20th century fox. do not miss this, in the meantime, the ecb makes their rate decision with the president mario draghi. retail sales for come out to 8:30 a.m. tomorrow. a key pillar of the u.s. economy is that spending so we will be watching that closely. >> that is all for "what'd you miss?" >> have a great evening, this is bloomberg. ♪

on emily chang at the e3 conference in los angeles. over the next hour, we will speak to some of the biggest on then gaming and latest trends and how they are keeping up th them.