resolving the toughest issues that affect all three nations. getting an agreement would let the u.s. turned its attention to that only affects canada such as increasing american access to the dairy market. declined tofices comment. scientists a california's record wildfires are the result of an abnormally hot and dry fire season in part due to climate change. the trip administration is blaming environmentalists. isthe trump administration born the interior secretary wrote people he called radical environment to lists are responsible for pushing back against active forest management. rand paul is in moscow. vladimir a letter from

-- from president trump to vladimir putin. he says he will a pose russian sanctions being put forth by his senate colleagues. theresa may is stepping up preparations in case brexit talks break down. bloomberg has learned she plans a top level cabinet meeting next month to discuss a no deal brexit. as a group of senior government officials that will try to come up with ways to keep the irish border free of customs, checks and police. global news 20 for hours a day on air and on tictoc on twitter powered by 2700 journalists and analysts in 120 countries. this is bloomberg.

scarlet: live i'm scarlet fu. this hour.mixed at financials in the lead. we are 30 minutes from the close of trading. scarlet: what'd you miss? the was announcing sanctions on russia. who is government was responsible for the nerve agent attack on a former agent in march. big screen the big problems. movie pass is changing its program as it loses customers. we talked to the ceo about his turnaround lance. and keeping an eye on sky. quarterly results investors will be watching for details to bid for sky. a service that perhaps is too good to be true for customers and an easy target to in -- to bet against. seellows some scrubbers to

one movie a day for under $10 a month. 2 million people signed up as many question whether the company could survive. in a move toward sustainability movie pass ceo announced a change to subscriptions. limiting customers to three movies a month to cut the cash burn by 60 percent. great to see you. a lot of people out there say the changes don't solve the problem. you have consumers to see more than three movies a month. what do they get wrong? over the last year and 3 million subscribers, we have been able to watch the segmentation of our subscribers by the amount of movies they go to. 40% of our cost of goods. by capping it at three, not only do we give -- if we can men said we are going to give you $45

worth of movies for $9.95 you would say what a great deal. the difference is it is going from a movie a day 23. 80% see less than three a month. the average is coming down close thise a month which is why business model is sustainable. it gets us quickly to one movie a month. the average cost is $10 a movie. we bring in tendon we make our money through advertising, studio partnerships, and not at the movies where we generate income from going to dinner, you need babysitting, etc.. in addition to the questions about sustainability there is the service itself. up. we bring this people love talking about this company. our producers canceled

the service. every time she tried to use the card it would not work. contact to digitally them. she would end up just paying for the movie anyway instead of being able to use her past. are you guys fixing these technical issues? >> believe me. there is nothing i hate worse than hearing those stories. we are buying 6% of all the movie tickets in the united states. we are half the size of cinemark without owning real estate and we have grown 15,000% in 10 months. you can imagine the challenges. julie: how many cancellations? >> it is so small, we are still over 3 million subscribers. we have people who are canceling. butave an imperfect system we are delivering an amazing value to subscribers every day. it is not perfect.

>> why not just go to amc or cinemark, coming into the u.s.. what is the advantage of going to move the past? you are the only game in town but now with these issues, you are working through you are and an environment where you have competitors. >> there are two significant differences. with movie pass you can go to four times as many theaters as the amc program. second, our target is the occasional moviegoer only going for five times a year. that is the group we are trying to focus on. if there is any mistake we have made it is trying to serve all movie customers. .e are half the price of amc that appeals to the occasional moviegoer who will go from spending $40 a year to spending 120. scarlet: what is your confidence this change will set the plan in

place? that you will not make further changes? price, search pricing, you abandon both. subscribersssuage who think it is a matter of time before you restrict more? >> time will tell. i could tell you this is the last change. this change is built on a huge amount of data. there is no other movie theaters scripture service with this amount of data. we are confident this is the last big change. julie: you were at 3 million subscribers. the lead ambassador said it will be profitable at 5 million subscribers. what is the pathway to profit here? one movie a month per subscriber. then generate millions of dollars in advertising revenue.

partnerships with brands. so that is what we are on in may, we reported our average usage was 1.7 movies per month at $10. we were losing seven dollars per subscriber. 15% of subscribers watch more than three movies a month. is the goal to get that down to 10% or 5% of your base? we have cap did. the most you can go to is three. >> but to get those kind as a whole to a lower percentage, make them angry enough, something they can't abide by and they will leave on their own. >> the path we were following, taking a long time would get a higher and higher percentage of occasional moviegoer's. ultimately we would have gotten there but it was taking a long time. >> so you have a product that is

popular but to make it it profitable you were people to use it less. the thing that has made it popular can't sustain the business. what are the revenue opportunities beyond that? >> fandango earns one dollar in studio paid advertising for every ticket it sells. we sell 5 million tickets a month. there is a dollar right there. we had advertising agreements with studios where we are able to buy 6% of movie tickets generally. when we promote a title we are buying 25%. that lift is worth millions studios and they are paying us to promote. a dollar? get >> we're not there yet but we think that is entirely feasible because fandango does exactly that. all kinds ofe have

partnerships were people want access to our subscriber base promoting their product. we believe we can generate four dollars to six dollars per subscriber per month in these. scarlet: have you sold the list? what we are doing is, you will see if you are a subscriber, you have gotten promotions if you're a college age students we have offered refinancing of your loans, various things like that. julie: while you are trying to run the business there is a stock that has collapsed. you have been delisted. what is the effect of it if it gets delisted again with the tumble? >> i've focused solely on the business. i'm trying to create a valuable business. i'm not a director or officer. have relied on growing the

company funding. the big decrease in the burn will give investors, over the next month as investors see the burn is coming down, 60% already and continuing to decline, yesterday in one day 15% of our monthly subscribers in the one movie a month all converted to the new plan. we expect a majority of our subscribers of our 3 million to convert and when people see the business model is getting to break even and the need for capital dramatically less, that valuable come back. julie: how close to break even are you? >> we will be there within a year. >> there is a lot of commentary about perhaps a class-action lawsuit because of the changes. are you concerned? >> of course. i have seen those.

all i can do is keep trying to deliver a great product. withy talk of partnerships movie theaters or studios directly? >> we are already getting paid millions to promote their films. we are over 2000 screens partnering with us where we get discounts on tickets and integrated into their point-of-sale. that is growing. julie: thank you for coming in. we appreciate your time. from new york, this is bloomberg.

scarlet: news breaking earlier that the u.s. will impose

sanctions on russia over the use of chemical agents in the u k. we want to bring in bill who joins us by phone. what have you heard in terms of reaction from the executive branch and the white house? this came from the state department. >> that is right. it is the kind of move that came because the state of harm be involved in determining whether there had been violations of from the early 1990's. reading between the lines i think it is the state department determination whether to press forward with this though i still think it is hard to imagine it doesn't happen without at least consultation and discussions with the white house. but i can't say that i know that for sure. the reason why we see this coming out of the state and not the white house. does this mend fences

with the u.k.? >> i think it helps. i think there was also this early reaction when the u.k. made its determination, the u.s. joined other countries taking a additional diplomats but there was hesitation on the part of the white house to say whether they believed the u.k.'s conclusions, which was surprising since the u.k. and u.s. intelligence agencies share so much information jointly. but i think the u.k. it will be seen as well come, if overdue. a reaction to only a attack that took place in march. there were additional victims more recently including a woman who died after finding a bottle that contained the nerve agent. >> why did this take so long? we are at this stage where every

other nation of consequence has come out against this and here we are months later with the u.s. jumping on board? i am is a delay that unable to explain. that will be a question for the white house and state department when they brief more fully on this. what is the process? they is hard to believe would have taken what is essentially almost five months since that attack to reach this conclusion. i -- in washington we can appreciate bureaucracy but this is a case where the question will be asked what took so long when it was clear that our closest ally in the intelligence world was able to reach a decision more quickly? julie: bringing us the latest on the new sanctions on russia over the poisoning in the u.k.. time for our stock of the hour.

it is tronc. shares biking higher. the company is weighing an offer for its newspaper holdings. abigail joins us with more. why c-shares absolutely soaring. a private equity firm could potentially by the company. the level, 19 to $20 per share. milliony less than $600 market cap following speculation this may be possible considering they did sell their l.a. times to a billionaire in june. one of those trophy assets. shares are up from the 50 word 2016 low. newspaper business is struggling. if we hop into the bloomberg we can see how this is. these are the revenues. they are moving in the wrong direction. this has everything to do with digital.

from advertising down 75% the peak in 2005. that is an issue for these companies. >> anything else besides advertising? >> they would be selling the entire company in whole. it would take a look at another newspaper company doing well, the new york times have been talking about the trump bump. what they have done well for they have moved to digital quickly. they have been late to the game. if we hop back into the bloomberg and compare shares with the near times did report shares are lower but take a look on the year, the new york times at the high of 40%. well off the lows on today's spike. if this bid does go through on the year it would be even. scarlet: they are coming through with the pay wall that they make people pay for content. >> and they rely more on

cost-cutting. in new york here after its last staff at the near daily news one of the beloved tabloids here. it is interesting that cost-cutting, which has been maybe not ipad2 public relations success but to profitability is not working. -- it isk it has to do such a big revenue decline, down cutsince 2005, you can only costs so much. losing proposition. this may be a solid offer option for tronc. scarlet: abigail doolittle, thank you for that timing. investors wiping right. more on the earnings ahead things to tender. this is bloomberg.

news, fcc hasing made inquiries over elon musk tweet saying he's considering ating his company private $420 a share according to a report from the dow jones. the have made inquiries over this tweet and examining whether the statement was truthful. jones. according to dow tesla shares following to session lows. julie: this killing concerns about what does that mean. funding is secured. it is a serious question. >> the board statement didn't clear anything up. scarlet: if anything no decision has been made. it is just what was on his mind and his thinking going forward. 2.8% at the down

moment. madge group feeling the love. the company behind tenter, okcupid and match.com saw a major bump in shares after earnings eat analyst estimates. more, sean, look at the numbers for the second quarter. revenue jumping 36%. eps, 40% per share. this is thanks to tender. competition for match? >> for the moment match is a monopoly. no one has been able to phase them down. direct revenue growing 136%. they are projecting the business to be 800 million by the end of 2018. 100% growth rate.

facebook is a big worry for them. facebook announced they are going to be entering online dating in the second half. investors are watching closely. >> we were marveling this morning but this sparked a sawte on online dating, we a huge increase in users of tin der. is there a penetration issue here? i don't know single people who der, but at what point do they bump up against their market? >> in the u.s. it is going to be more extensive. , downloads are still growing year over year. it is growing in india and japan. other markets have not overcome the stigma is up online dating. it has a long way to go.

that said, what they did a year ago was introduce a paid product that accelerated subscribers. that is what is driving revenue and it is coming off on a sequential basis. growth rates are going to come down into 2019. >> how big of a threat is facebook? been these niche sites. the new have facebook that is so broad. how does that factor in to the landscape? init is about imagine never -- never having faced a competitor of this scale before. you're going to have these easy on boarding process. be quick. up will we don't know what it is going to do to the subscription size. half of the business is basically older brands like match.com which are not seeing subscriber growth. it could mean downside for

revenue or risks for the second half of the business. julie: thank you so much. we have the market close coming up. a mixed trade in the u.s.. this isn't just any moving day.

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[applause] >> "what'd you miss?" stocks had little change but big move in individual stocks. i'm julie hyman. scarlet: i'm scarlet fu. romaine: i'm romaine bostick and for joe weisenthal. to the closing bell coverage from 4 p.m. to 5 p.m. eastern if you are on twitter. taking a look at the market minutes, some of the assets we are watching here, we have the dow down 2/10 of 1%. the s&p is all the way unchanged almost. it moved to one hundredths of an inch. nasdaq is holding onto gains of six 100's of a percent. all major averages are not moving much. we're taking a look across assets, the 10 year yield is not moving much as well.

2.97%. the dollar is also little changed. prices, is that right for oil prices? scarlet: no. oil fell by quite a bit. julie: if you look at the bloomberg, it is down 3.4%. i don't know a few guys want to take my bloomberg year. oil prices are taking a tumble after we had earlier inventory reports. that is having an effect on oil prices and that is coming out right around here on the session. a catalyst for the decline there. we have breaking news right now. scarlet: pretty sick century fox coming out with its fiscal fourth quarter. adjusted earnings for sure -- per share is better than what analysts have been looking for. year was alsoe beating the highest analyst estimates as well.

beforeetwork programming depreciation and amortization for the tv business is about $106 million. a verys has been profitable part of the business for 20% three fox. romaine: the numbers are -- 21st century fox. romaine: the numbers are looking pretty good. scarlet: they comes down to what the company says about sky and we heard from disney which is involved in the whole sky and comcast, do we want to call the derby or race to acquire the best assets year? --here? toaine: i'm really excited see what the combination will look like. really see a revamped

company if they work out the sky issue. julie: i did a word search for sky and it is not there in the statement. presumably there will be questions about it on the call and whether -- how far it is willing to go to get the deal done. i'm sure there is pressure from disney whose bob iger said sky is one of the more valuable assets within, potentially within, the fox portfolio. we didn't see that stocks change much as you have the outstanding issue of sky and the disney acquisition. when you look at what remains of the company, that is at the crock of what will be the business here. scarlet: you wonder what rupert strategy -- rupert's strategy is. you wonder if he is selling at the top of the market while everyone else is coming into bit higher. let's bring in geetha.

she helped us disney result yesterday. when you look at the numbers for 21st century fox, the fiscal first order -- fourth-quarter revenue is beating the highest excellence -- estimates. were investors and analysts lowballing? were they not confident in the business coming into the earnings report? geetha: i think it was her healthy report from 20% three fox -- from 21st century fox. the real focus is on the deal with disney and what could potentially happen with sky. they definitely would've gotten a boost in the cable network .egment those have been increasing steadily for the past many quarters and they also had telecast which has them on the ratings and add revenue front. they also had a little bit of a

boost on the performance of dick fuld to which has exceeded expectations -- of dead pool two which has exceeded expectations. julie: what can we expect for the earnings of the business from the report? geetha: it is now about the focus shifting to new fox. and we heard about disney future proofing its business and shifting the entire focus to streaming and getting all of that content from streaming, for new fox, it will be all about news with the fox news network and a sports. and are keeping fox news giving fox sports one and two. aen they are broadcasting network which has a heavy focus on nfl and news. ony have been doubling down sports rights so they recently acquired rights to the thursday night game as well as a package from the wwe. they are hunting and on their

, and i think it will be a pretty powerful property moving forward. romaine: talk to me about sky. when will we find out what will happen with this deal? and if disney does not walk away with 100% of this, how does it change the calculus of this deal? geetha: it looks like fox is keeping all of its options open. they formalized the big yesterday for sky, but they made should it was not a final bed. -- bid. they kick started a 45 day. and both comcast and fox have an opportunity to present a raised bed until september the second -- 22nd. disney has always spoken about how great and asset sky is. it pushes forward their platform. then again, i think the question

investors have been worried about is the heavy valuation for what is traditionally viewed as a legacy business. the satellite operating business is not a place you want to be. investors are concerned there. it will be interesting to see how this plays out. scarlet: what do you think rupert murdoch's strategy is? say he is at the top of the market where nine or 10 years into the market --he has always been an inquisitive guy. what does he do now with a slimmer version of fox? geetha: i agree. i think he has the top of the market. in order to really double up the film property, especially the

studio, i think content investments will get bigger and bigger. i don't think fox is really comfortable with that asset. i think they made a smart move by saying they are retaining the sports and news, which is the core competencies. they are extremely comfortable with those and they know how to monetize them well. julie: i want to ask about international revenue. it looks like the company's star india business is doing well. it talks about affiliate revenue up 12%. that actually looks like the full year. it is 4% on the quarterly basis and saw international advertising revenue up 55%. is that one of the bright spots as well for fox that will continue to post the deal? geetha: the star of india will go to disney. one of the reasons disney wanted it was because they needed to get into the international diversification. fox has been one of the first movers in terms of geographics

and extending their overseas footprint. star has been a great investment for them. they know how to take that property forward. they have probably achieved 500 million in even -- in ebida. considering all of their investments in the mobile platform, they're getting about 150 million viewers every month. this is almost something to the scale of netflix. that is the scale and success they have been able to achieve and it will be a crown jewel for disney. julie: geetha ranganathan bloomberg intelligence senior media analyst, thank you. we want to bring you an earnings from monster beverage in the past few moments. the earnings-per-share and number -- the earnings-per-share number was up with an increase of $.12 year-over-year. gross margin was increasing. we saw a lot of pressure on foodns from many

companies. 61.1% is the gross margin you are seeing there. 68.8% was what was predicted by analysts. shares are moving higher in the after-hours session. we are also awaiting sessions from booking holding. they're delaying their interviews until tomorrow morning. the company said it is scheduling a conference call at 8 a.m. tomorrow morning. if the results -- it appears report theady to information but also they are getting business earnings to report. scarlet: this used to be priceline. julie: and those shares are moving in the after-hours session. the me take a look. they're moving down because it looks like there's concern about what this implies. scarlet: that's usually the case of someone delays and earnings

report. julie: yes. not entirely surprised. from new york, this is bloomberg. ♪

mark: i'm mark crumpton with first word news. the united states announced new sanctions against russia. the u.s. has made its final determination that vladimir putin's government was responsible for the march fourth nerve agent attack on a former spy and his daughter in the u.k.. the state department said the sanctions tied to the use of chemical weapons are expected to take effect on august 22, but did not immediately say what they would entail. justin trudeau says canada will speak up against human rights

and will maintain its current approach with saudi arabia. this comic came after canada criticized the saudis for the rest of women rights activists. >> canada will always stand up for our workers and companies. we need to make sure we are predicting -- protecting canadian interests. we continue to engage with the government of saudi arabia. the ministerof -- of foreign affairs had a long conversation with their minister yesterday, and diplomatic talks continue. mark: the saudis responded to the criticism by expelling the canadian ambassador and freezing new business ties. high-level meetings in -- withon included turkish officials concluded today. officials met to ease the crisis in relations caused by turkey's continued contention.

the incident led the trump administration last week to slap punitive sessions on two tickets -- two turkish issues. theresa may and other senior conservatives told the former prime minister to apologize for newspaper column where he belittled burqa wearing women. burqas butbanning wrote it was "absolutely ridiculous and people should choose to go around looking like letterboxes." the founder of the conservative muslim forum said the article had been "totally out of order." global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: breaking news.

to update you on what mark was telling you, there are more headlines in the u.s. with sanctions on russia. the u.s. is said to plan additional sanctions if demand or not met. the u.s. is seeking russian asserts is -- assurances on no more chemical weapon usage. without adherence or compliance from russia, the u.s. is said to plan additional sanctions if those demands are not met. we will keep you posted on developments. we saw the ruble tumble after the first headline that the u.s. would sanction russia over the nerve agent attack on next spy in the u.k. -- ex-spy in the u.k.. romaine: all of this coming out of the state department, right? scarlet: yes. the original statement coming out of the state department and the president is on vacation. romaine: it will be interesting to see him react directly. julie: i wanted to mention a

couple of earnings report quickly. roku is out with its first numbers. that company's revenue is beating estimates. it is breaking even on a share basis. that is better than the $.15 loss estimated by analysts. romaine: shares are going down now. julie: they have been bouncing around. yelp shares have been rising. that company coming up with earnings and roku is down 4/10 of 1%. yelp's second-quarter revenue is coming out ahead of estimates. $235 million and the shares are up 6%. interesting post market move year. "what'd you miss?" let's get more insight into market and why there was aerosmith on bonds. bearishness ons bonds. you just made a

commentary piece looking at this persistent view that bonds are going to be going into a bear market if they are not already there. what are the factors that are supporting bond market performance? a couple of them include the fact that wage gains, real wage gains are going nowhere. we will get a cpi report later this week. based on the 2% year-over-year gains from nfp report in gains of average hourly earnings and weekly earnings, we talking about negative real wage gains. despite the fact that we have a low unemployment rate, we're not seeing it translate to the workforce. i think the fed is looking at that factor. there's also a structural element i have talked about before which is that with all of the huge deficits we are getting and they are rising, the indices that contain treasuries are

getting heavier weight of treasuries there is a force by need, particularly -- forced buy need. particularly in the bond market. x is going to have to maintain themselves. it is an offset to the growth story. those are some of the elements i'm looking at. scarlet: so there is always a bid for treasuries. beingeing mis-hit -- that the case, why are there so many persistent bearish voices? preparedsaying to be for 5% yield on the 10 year. david: jamie is smart. we can throw that out. how boring is it if you say treasuries are going to hang around and 10 year is going to

hang around 3% for a long time. you want to be bullish or bearish, not neutral. i also think the evidence in front of us, the phillips curve, low unemployment rate, strong argue that rates should be higher. we're looking at the obvious. the 10 year yield is hanging around slightly under 3%. think of some of the subtle forces taking part keeping rates subdued. lateee nothing of its cycle and other things going along with it. i think it is easy to be bearish. we can look at the obvious things. but, rates are telling you a different story. i have to add that the fed is hiking. we are getting short rates higher. as we see historically and in every cycle when the fed is

up,ng and that curve is there is an endgame. romaine: talk to me about the yield curve and inversion and how much importance people are putting on it. are we reading too much into the potential inversion with regards to the health of the economy? i don't think we are reading too much into it. the yield curve has been perhaps the best predictor of a recession 18 or 24 months ahead. i think when people challenge and question it, they are saying this time is different because of monetary policy being different. there has been a quantitative easing impact, etc. each cycle has its new want to's and the differences, but i think ultimately the yield curve will a fairly good predictor of economy.

one of the things i think is worth noting is there are other types of yield curves. if you look at the university of michigan's five-year inflation expectations against their shorter-term inflation expectations, that is kind of an inverted curve. julie: just quickly, based on all of this, would you continue to go along bonds and would you continue -- do you think it is a good idea to buy things like utilities? david: i have been buying utilities and my value stocks have not done quite as well. i'm waiting, if you will. i think rates will bump up a little bit. i think we will get the fed hikes in here. 3.25 on 10as been year yields. i'm losing my confidence we will get there because we have held in so well. i like buying for a tactical

wings.the belly in the julie: david ader chief macro strategist at informa financial intelligence. vote inonfirmation and the new york city council which put a cap on uber and other app-based car for hire companies . the city council voted for this proposal that would cap the number of new licenses. it is also giving the city decommission authority to set minimum pay standards for drivers. that is also an interesting move here. a similar cap was rejected and proposed by the mayor. the council voted against it three years ago. in the number of uber drivers on the streets and other types of cars for higher on the streets as well. scarlet: this is something we

were expecting and is now coming through. "what'd you miss?" it is time for smart charts with abigail doolittle. a weekly segment where we look at three chart on timely topics. thank you. dan, thank you so much for taking your time. today and yesterday, not a lot happening for the major averages. s&p was down and the nasdaq is up. it is up for seventh day in a row. have the s&p 500 pushing an all-time high. take a look at the chart here. can you talk to us about the internals of the chart? dan: we can see the s&p 500 marching toward the january highs above the rising 200 day moving average. we have mixed signals. in the middle of the chart is the advanced the klein line. that is moving to all-time highs and has been one of the key metrics i have been looking at. my view has been consolidation with a consecutive uptrend resulting to be up side.

the bottom part is the percentage of constituents at 52-week highs. 60% -- 6%.at 50 -- what i think is happening is, as the grind higher, we see rotation. at some of the high-performing sectors rolloff, other groups like consumer staples and utilities with health care are picking up the slack. those names will take time to move up to 52-week highs. that is what i think we are seeing here. i took a look back and we were down around this four to 6% level november 2016 before the election and before the market took off. it is a competing signal and something we keep an eye on. right now, near-term, we are getting close to the top. we could see a bit of a decline especially with seasonal's and weak around this time with the midterm elections.

up and out is the way. abigail: so not too much of a commitment tactically but over the medium and long-term, yes. let's take a look at health care. dan: this is something we have been focused on. the top of the chart is the s&p 500 health index relative to the s&p 500. it has been in a steady downtrend foremost of the past year and a half. it is making the turn above the 50 day moving average. it took out the highs from late april, early may. i think health care is emerging leadership and one of the reasons one of the percentage of stocks is taking a dip. new leadership is coming on and they will take time to reach their eyes. health care is a sector -- their highs. health care is a sector where looking at. it looks similar to the s&p 500. abigail: quickly you are also

positive on health care equipment. dan: health care equipment and services is one of the key areas leading the term. they are breaking out of an ascending triangle and making a new high today. hmos,are your hospitals, and med device companies. this is a leading group that is starting to outperform. it is a keller -- it is a compelling spot. abigail: so maybe look to take chips off overall. dan russo, thank you so much for joining us. julie: abigail, thank you much. health care was also the topic of our segment as well. there are plenty speed bumps on a potential buyout of tesla. we discuss. this is bloomberg. ♪

mark: i'm mark crumpton with first word news. president trump's lawyers responded to special counsel robert mueller with their latest counterproposal for the terms of a possible interview with the president. the president's legal team has said mr. trump would be willing to answer questions about alleged collusion with russia and election meddling, but not about whether he obstructed justice. the senate intelligence committee called on julian assange to testify and what it calls a mutually agreeable location according to a tweet from wikileaks. the wiki leaks legal team says it is considering the offer. assange has been held up in

ecuador's embassy for six years. a new york congressman and his son have been indicted for insider trading relating to australian biotechnology firms and therapeutics of which he was a member of a board of a publicly traded company. the republican congressman from new york and his son cameron and the father of cameron's fiance were charged in manhattan. federal prosecutors believe it is the first insider trading case against a sitting congressman. >> congressman collins had an obligation a legal duty to keep that information secret until that information was released by the company to the public. he did not keep it secret. instead, as alleged, he decided to commit a crime. mark: he was a first house republican to endorse donald trump for president and was removed from the energy commerce

committee by paul ryan who is also seeking an investigation by the house ethics committee. argentina's senate began a session to decide on legalizing elected abortions. the lower house of congress has passed the measure. the bill would allow elected abortions in the first 14 weeks of pregnancy. they currently only allow abortion if there are risks to health or because of rape. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap of today's market action. not a lot about the major indexes. little change for the s&p and nasdaq. the dow is going lower. lots of earnings to go through. let's start with yelp.

the full-year outlook was higher than what analysts had been looking for. the stock is up by 14% in after-hours trading. roku also coming out of trading -- numbers. it season never revenue of 164 to 174 million. analysts were looking for lower. julie: also, if you look at , they are coming in ahead of estimates whether it comes to earnings or sales. $.26 a share is the earnings number. two cents better than estimated revenue -- estimated. revenue is in line with estimates. "what'd you miss?" the possibility of tesla going

private raises a lot of questions for its investors. some are not convinced yuan musk's -- elon musk's value is high enough. we have the ceo of trait and itonarch here -- tra research. you compare this to the ipo that we have seen this year. it would be huge. thehis is as big as all of tech ipos all-in-one. $82 billion of new market cap created with technology companies going public. this one would be 70 odd billion dollars. it undoes 73 deals. that is what happens when the statistics are shopping. tesla went public on 100 this -- 100ish million dollars. it's a valuation has grown 50 times in the public market.

scarlet: that is a great scope onn of size and what has low would look like if he took it out of the public market. what was your reaction when you heard about the tweet the elon is considering taking a private in the funding is secured? what would this look like? rett: one of the things we think is interesting in markets like this is there are a lot of good reasons to go public. you go public because it makes you rich. in terms of the stock, you can buy stock -- my house. -- buy a house. elon wants to get rid of a lot of the things that come with being public. he doesn't like it when people bet against him. what is interesting to us is going private is pretty complicated relative to what he would like to accomplish so that people cannot bet against him. romaine: it makes you wonder why now.

he could have gone private when the stock was under 200 a year or so ago. why wait until you get to such a high valuation to try to take this company back private? rett: that is a good question. you have to remember who you are talking about. why do anything? why self flamethrowers? one of the things, if you take him at his word, that they have just become a real car company and they were at risk of failing, he said they bet the company on the model three. now he is one that bet. bet --rivate one that going private would have been a reckless thing if you not one that bet. happiness inave having small retail investors. he does not want people to short him. it will be interesting to see if he is able to a college what he wants to accomplish given the complexities of going private. scarlet: let me ask you a dumb

question, is there a way for him to avoid being shorted at the public trading company -- as a public trading company? rett: i don't know. if you could make your stock not borrow birth -- borrow bowl -- borrowable maybe? julie: or to make the stock price too high that it is painful. rett: right. he is railing against the shorts and calling for the short squeeze. he is trying to get the shorts out of the stock. scarlet: yesterday was a good example. with musk, his sentiment is shared by a lot of ceos. they're not maybe a static about it, but we have seen that's going back ipos. some of those folks have structured the share ownership in a way that they retain. we saw that with facebook and snap.

what is the incentive for companies to go public if they want to end up like elon musk? rett: that's why spacex is still private. scarlet: that would be a great company, space book. rett: we talk about the ipo window being wide-open and we have seen that with 23 or 24 tech companies going public. a company going public with a billion dollars of revenue is relative to what we used to see with companies going public. companies don't really want to andntil it is time to go you need to create liquidity for your shareholders. julie: when you look at recent ipos, with the willingness to markets,in the public does that informed the discussion about tesla at all? in other words, how much cash is moving around the big funds like softbank for example want to put to work, and do they have a

preference for public or private market? rett: we joke here that no one has a preference for public companies good or bad, or ipos good a bad in the sense -- good or bad in the sense that they all are welcomed into the market. you saw a few limping into the public markets cutting their prices. you can crawl through the ipo window now. you're still welcomed by investors. that is what is investing -- interesting of investors. they could be selling the market cap in the tesla trade and, increasingly, investors are all the same. fidelity is public, but private kind of. tradedk is a publicly company but a private equity fund. the lines are blurring now.

scarlet: how do you see this playing out? rett: the tesla thing? scarlet: yeah. rett: you can sell tickets to this. it will be great. [laughter] rett: four people that are geeky students about why companies go eoplec or not, -- for p that are geeky students about why companies go public or not, this will be great. rett wallace ceo of triton research, thank you. justin trudeau is standing with women's rights activists jailed in saudi arabia. our comedians standing with him? are comedians standing with him? this is bloomberg. ♪

scarlet: "what'd you miss?" as heu is taking a stand gets a rare bump in the polls refusing to backing down in a standoff with saudi arabia over the recent arrest of female activists. he spoke about the issue in the last hour. saudi arabia says it will continue to put pressure on canada to dispose of canadian equities, bonds, and cash holding. for more context let's bring in david scanlan. thank you so much for joining us. give us a sense of what this means for trudeau's standing at home. he is getting a bump in the polls. was the reception toward him sinking or was the popularity waning and providing a much --ding -- much meeting left and this providing a much-needed lift? david: he is taking heat from

politicians saying this is a naive trudeau going around the world where change is pretty optimal. rights is safe's ground for him in canada. he has been a champion for women's rights since he was elected. he is a gender bound cabinets already. he has been pushing for these already. it makes sense. he has been trailing a little bit in the polls and elections are about the euro way. this may help them a little, yes -- about a year away. this may help them, yes. romaine: this seems to be like more than what is going on with the activists. david: i think this is more about saudi arabia than it is about canada. canada is not the first country to question their human rights record. it just so happened did it in a public way and it was strong language. the saudis stood up and clearly the world thatto

we will be responsible for our own policy. but out. -- butt out. and if you want to do business with us, you need to be more polite with us. julie: speaking of polite, the u.s. and canada. saudiou add this new arabia situation, how are canadians viewing president erdogan's performance in -- president trudeau's performance in general? an hour ago and he looked very confident and calm and looked -- and did not look like a guy to apologize or buckle under the pressure. he has taken a lot of heat from trump and those nafta negotiations have not gone well. there are signs that there is a bit more optimism at the table. this could be an important month for him. romaine: when i look at the trade between these two nations talking 4 billion and three and a half billion and looking at

the reserves and saudi arabia as 10 billion, do either of these countries really need each other? david: i don't. why it isat is safe for saudi arabia to come out strong and canada not pay attention to them. the trade is small. the saudis say they are going to withdraw all of their investment in canada. they don't really have a lot. they own small piece of stock, have a wheat business in canada, and the import of their a bit of oil. it is easy to get into this as the economic cost is low. julie: thank you so much, david. road for, bumps in the ridesharing apps. why over and lyuft could get -- white uber and -- why uber and

lyft could get more expensive. this is bloomberg. ♪

julie: "what'd you miss?" new york has dealt a major blow to uber and other ride-hailing apps three years after voting a similar measure down. they put an industrywide cap on licenses. they also grant authority to the i and limousine area to set

wages. uber successfully lobbied against this years ago. despite that, this time it did not happen. how much of a setback is this? less 2015, a far ubiquitous be down. the mayor scare the government from regulating it allowing it -- scarede to grow the government from regulating it allowing you to grow. it is a blow to uber to set a grow and shrink with the amount of demand. it is a major setback. thelet: in terms of response here, not just from the company itself, the more importantly other cities including please like london which is also trying to figure andhow to contend with uber

its ammo of breaking down the walls and apologizing or seeking forgiveness later. how likely is it other cities will follow the lead of new york? eric: i think it will be an interesting experiment. plenty of other cities will watch what happens in new york. -- it is ar lock-in one year lock-in, so we can see what happens. other cities will certainly learn and make a decision for themselves to see what kind of impact it has on traffic and wages. more: does uber need vehicle help in new york city? scarlet and i talked about this earlier, there are a lot of inr's in new york -- ubers new york. do we have any information on supply demand balance? says they are self-correcting and if there are larger problems with traffic and there are ways to fix them, they

target the congestion themselves. zoning areas and taxing cars there. but, allowing the marketplace on uber to set the number of drivers, that sets the number. i think they would prefer leverage that allows the marketplace to respond to costs that try to reduce traffic without setting a hard cap they cannot react. scarlet: in new york, it is so much about traffic -- so much more about traffic -- so much more than traffic. that theya report want making living wages and taxis losing their jobs. romaine: this might be too little too late. eric, you talk about what happened in 2015. 100,000ork we are about

uber drivers on the street up from about 60,000 a few years ago. eric: i think the challenge is on the one hand, if you restrict a labor market, that generally means better jobs for those people who have the positions, making them more lucrative. but, if you expand the number of people who can drive, that is more jobs and each one of them making less money. that's this question society has asked and new york has entered about setting priorities around whether they want to make the job sustainable for the workers who have it, or make a minimum job available to as wide a number of people as possible. julie: have we gotten any transparency on the effectiveness? not just on the cap of vehicles, but the ability of the taxi and limousine commission to set the minimum wage. will this got into uber's margins at all? will it increase cost?

detail --iven any have they given any detail? eric: my consensus is that uber has supported the minimum pay. how that plays out, whether it translates to more pay is hard to say. there is so many things with uber. there are full-time drivers working strange hours, some working shorter hours, so it is plausible that certain groups of drivers could benefit from a minimum pay and others might not. a lot of it, we will have to see this play out and look at the data. at least as much as uber provides in the city is able to inhale about the effect of a minimum wage projection for these drivers. scarlet: good stuff. eric newcomer, joining us from san francisco with the latest on how uber will position itself

following this position from new york city. we will continue to keep you posted. let's get you to the bloomberg business flash. boeing faces new production problems for it 737 jetliner. engines have contributed to a jam at the seattle factory. the 737 is their biggest source of product -- profit. there has been an increased number of demand. cbs says the takeover is on track to close early in the fourth quarter at the latest. they are working productively. bloomberg learned that they don't see competitive problems from uniting companies at different levels of supply chain. shares of the new york times are falling the most in almost four years. a slowdown in online subscribers

continued and leading to concern that even top newspapers are struggling to survive in an increasingly digital world. that is your business flash update. coming up, what you need to know to gear for tomorrow's trading day. this is bloomberg. ♪ oomberg. ♪

scarlet: "what'd you miss?" not much. little changed for the dow, s&p, and nasdaq. the s&p broke a five day winning streak. julie: we were looking at the after-hours earnings and booking delayed their earnings tilde morning and the shares are falling because of it. scarlet: we will cover that tomorrow. numbers for china's ppi coming out at 9 p.m. eastern. max: and i'm looking at u.s. ppi data -- romaine: and am looking at u.s. ppi data. julie: viacom is reporting third-quarter earnings before the open of trading. scarlet: that does it for "what'd you miss?" julie: "bloomberg technology" is up next. romaine: have a great evening. this is bloomberg. ♪ phones have made our lives effortless.

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emily: i'm emily chang in san francisco and this is "bloomberg , technology." fallout from elon musk costs plan to take -- elon musk's plan to take tesla private. firstsnap reporting its ever drop in daily users. what is it doing to stay on users' radars? bitcoin down further