mark: representatives of the taliban and an afghan figures including former president karzai are in moscow for two days of talks. this is seen as another step in the process aimed at the afghanistan 17 year war. ahead of the taliban delegation told reporters the talks were fruitful and noted that 99.9% of afghanistan's population is muslim. classic court into the islamic -- islamic.itution is

no doubt around that. mark: head of women's rights said it -- it was important to elaborate with the taliban mean by islamic rights of women. to he is criticizing the united states over delays in setting up a buffer zone in syria. speaking today, the president said washington will not help with its promise to clamp the region of terrorists. then turkey will do alone. purdue on and president trump talked about establishing a safe sony's of the euphrates river in syria. paris, a fire today killed at least 10 people and injured 31 others. roof at thehe windows to escape. the building is located in the 16th district. police suspect arson and he

arrested a female resident said to have a history of psychiatric problems. venezuela's madura has an offer for the deaf from the night states. view one to bring humanitarian aid into the country, lift economic sanctions first. maduro blames u.s. for shortages of food and medicine that exist long before, says he will block the delivery of aid into venezuela. shipments are being orchestrated by maduro challenger won by dell and international coalition including the united states and canada. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪

>> this is bloomberg markets the close. i'm scarlet fu p or >> i am caroline hyde. 30 minutes from the end of the i'm looking at apple once again. seeing what is the most valuable company in the s&p 500, amazon, microsoft, is well -- well off the $1 trillion mark. >> just $800 billion. the dollar moving up slightly by 1/10 of 1%. it is before president trump has his state of the union address details perhaps his plan for how to build the economy. >> markets managing to build this game. the euro high against the pound. from italy and france, notably ugly data coming from the u.k. p are basically serving a key part

of the economy, flatlining down on the pound. >> the dow and the nasdaq s&p as the session highs in the moment. boeing, intel, apple, the biggest contributors to this has come down as you as well. you just do not see a lot of people feeling a to buy a lot of protection downside. >> concerns about the shutdown looming. worry. meanwhile, crude oil up by 1.5%. we have concerned about stockpiling in the u.s. >> the pound is the biggest loser versus the dollar. a 2.5 year low coming talked about the 200 moving to average earlier on. the bank of england meeting on thursday, you know they will not do anything. >> we will keep an i and all monitor policy p are let's have a look at some of the big movers on the back of analyst recommendations. downgraded from a buy by

deutsche bank, the price target, analysts say earnings physical u.s. clear but we are gaining. next up, boeing p are price target raised to 4.59, and the analysts, strong margins for 2019. .> tesla's price target was cut the analysts acting whether it can be self financing in 2019. about 2.8%. arrowss stay with great for now. president trump delivers his state of the and in dress tonight -- address tonight. watching for any hints on trade policy and infrastructure and health care. mi is here now.

formed, up since then, the best-performing sector, since under trump. you get to about one half i think. we look at the way the markets are formed, they really like trump. we see a nice grind upwards there during the first year thosewe haven't had fears, remember the us of 2018 down, and stocks had their best month in two years in january. you mentioned in terms of which index. you look under the hood, it is an interesting winner as well.

at individual names, the present has benefited the the trump presidency is jeff basis. we have a chart which should be able to show you who the winners are. since trump was elected, he has become the world's richest man. it is a gain of $66 billion under trump. that was driven almost exclusively by his holdings in you look at the second biggest gainer warren buffett, 19 billion under trump. >> number one, number two, number three. pretty not -- pretty big numbers . we will look ahead to tonight'speech. which would you be keeping an ion? everyone will look for information on trade. it impacts different stocks. retailers, so to

will be worth looking at automakers and see if we get anything interesting on -- we have forgotten about that little bit. trump still needs congress to approve it. sit is not even officially at p request any concern he might start to renege on it, automakers will be concerned about that. when it comes to china, it is interesting because they both had different outlooks, different breeds of how the trade war is impacting businesses on earnings report. these are all the ones that are extended and might have been sought, those of the ones next. looked at weres names of infrastructure plans. it is actually something that should have bipartisan support. both sides think that fixing roads and bridges are good idea,

>> we look at it. >> the supposed be a unifying speech. >> great perspective as ever, we thank you. the forecast is looking good. amazon, microsoft, google, showing no slowdown in sight. this is bloomberg. ♪

scarlet: ubs wants to move part of its business out on march 1 saying it poses a risk. in -- a permission to transfer somewhere to germany. the final step needed to activate proposals ubs had laid out almost a year ago. venezuela pretty money of the fastest pace in more two decades.

the money supply of the country rose 31% in a week that ended january 25. could be a sign the panicked government boosted spending two to protests, sanctions, and big chunks of the international community led by the u.s. the billionaire's investment firm firing the city manager out office romance was handled. associates claimed the foreign-exchange research bob l.a. did not disclose the relationship. and believes he was dismissed without cause. the woman involved was also fired. that is your business flash update. caroline: let's shift our attention. demand is booming. joining us from san francisco, from bloomberg intelligence. from intel worries and micron. that didn't seem to come through when it comes to ashok cloud providers.

market rightt the now, anywhere from 350 to $200 billion big. a big block of that spending is in software. microsoftwith the growth rates are suggesting what amazon growth rates are suggesting, they are holding onto their own pretty well. in comparison to $2 trillion of spending, we're still over here. we anticipate the cloud markets and microsoft, google, and amazon are the beneficiaries here. classic may be the case, the chipmakers, downcast outlooks. >> they might be moving longer-term.

>> the disconnect is because they are just different ends of the business, or micron and intel have been overoptimistic about how quickly things will grow, or other measures by which they go by? party boat.ly the way to think that the market is it is very difficult for market demand by nuclear or , microsoft has to be much bigger five or six years down the line. watch the three players then when it comes to asian alibaba as well. >> is cloud computing more difficult to forecast that other types of investments companies make just as a way of engaging what to expect in quarters to come, is there more room for error your question mark plus fed a good question. we have seen this in the estimate. if you look at the end market forecast for cloud computing for the same year, 2019 in 2020, the

forecast has been jumping up every year for a couple of years. the cloud computing as to ends of the demand. essentially looking at enterprises, what is the rate there, and one is invisible demand. you don't spend for kaman go to spend $5 billion on cloud. that sort of to exist. also driving the market. >> still there? >> yes. but the market is big enough for all three to benefit in the long run. google's been enough to catch up to the two. microsoft, google, and amazon should own the market in the wrong -- in the long run. >> amazon is the undisputed king for now. thank you so much.

joining us from san francisco. now, 15 minutes to go before the market is a spirit the s&p 500 gaining for fixed-rate day notwithstanding the decline in financial spirit treasury yields are lower pushing down those financials. still when he in china, this is bloomberg. still winning in china. this is bloomberg. ♪ ♪ i'm a veteran

and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome.

scarlet: joining us at this hour is always is joe weisenthal. the lowball environment continues to the vix just checking. swings like dish like we used to the very declining volatility in low volatility.

we are seeing buyers. >> an interesting tussle at the top. >> it is very 2017 like. very weird. >> speaking of levitating, consumer durables and apparel leading the way up by that are 1.2% i should say fear big gainers here with media entertainment for disney reports earnings. >> keeping an eye on disney and folks streaming. on the downside, we talk about this all day. thanks on the lower side. the financials. >> it is a big part of the story. environment is just not there for people to bet on financials especially when tech continues to lead the way.

when he lifted indexes, we're just coming off the session highs. we're still holding onto advances. a long way from where we started a couple of hours ago. >> a little of the highs that again, a nice quiet day of gains. >> we are moments away from the close. eight minutes to be exact. let's look at today's action. lisa. they were considering an acquisition and closely held private meet company, 1.2% but they have -- i find this interesting for a number of reasons pure tyson shares have been incredibly volatile, of 60% this year. this massiveow how chicken behemoth is trying to add value. looking at locally raised chickens, trying to appeal to people looking for premade foods and more ecologically sound.

the markets so far not that excited. >> looking at apple, something amazing happened earlier. the fact that apple was briefly the world's most valuable company in the world despite the fact shares are in a rolling bear market. at amazon.ng the bear market for apple, the lows, apple really underperformed the two other big tex names. down 20%. our now has a market cap of 820 billion microsoft. despite the fact that this year analysts are looking for negative growth on the top line relative to apple or might seven amazon double-digit growth. -- investorshaps really are looking past that fact and perhaps they think the maybe timct ahead,

cook will play rabbit out of a hat. time will tell. >> thanks, abigail. the shares of a cosmetics company are up 12% today and a lot of that is because they boosted their forecast for the year. merrily -- primarily because of stronger-than-expected sales in asia. this comes as a surprise to a lot of investors. there was a lot of concern about a slowdown in the chinese economy and how that would affect the company. the company now saying on an adjusted basis for the year, it will be as much as five dollars. it is not just asia or china. .t is the entire asian region hong kong, japan, all of these areas seeing double-digit growth. less than a month ago, goldman sachs came out and downgraded this company to a sell, expecting a deceleration for sales growth primarily because of concerns and china. we see that is not really the case. the best-performing stock in the s&p 500 today.

caroline? >> great round up there. as we head into the market close five minutes ago, the founder and chief of capital management, and the former ceo, from your perspective, we are hearing about shrugging off china concerns. can you get a sense of where you see key risks and key opportunities? is china trade what will drive is higher or lower? >> right now, if you look at the world, it is definitely a -- for extended time. long riskiere a assets until you deal with china. when that happens, i think you want to look to scale back risk assets at that point in time. there will then be credit issues that are going into 2020. >> the deal of china would be --l the news >> if you look the first month

of the year, we have a high-yield market perform incredibly well. 3.5%, and there is a real move. the stocks, it is really the myth -- risk on mentality out there. you need to look at what do you think the return its petitions for the year is on the asset classes and it is not 35%, it is 30%, it needs to be looking to sell that. >> goldman sachs agrees with you. it will be slow going here. the 10 year rallied a little bit.

>> how much can he basically ?ontribute to the fed >> risky assets as much is he can. haven't had credit events or anything external for so long, just rise people to put trades on. they think that is the right thing to do. i do not think it works for the next five years. >> not just in the bond market or the high-yield market, but oil has had an amazing recovery. where d.c. oil going? >> oil is probably in a range. at the last 20 years, and it is probably in the high 40's, the number it has settled in at, and i really think we are at the high end of the range. 55, 58. trey that down as well. this is the traders market.

you cannot put risk on and just walk away. there is so much volatility and headline risk associated with it. you may get an ok return, but you could get a lot higher return. question it is the big headline risk. what about the possibility of another government shutdown? we're ok for now but after that? >> i think it is a sideshow. eventually, pressure comes in .omewhere it took a few flights coming in to get canceled. everyone knows -- a lot of ways. >> i want to go back to what you just said about how this is a traders market and you cannot just put risk on an walk away. you can talk to other people and say, in an environment with this many headlines, the shutdown would be a good example of a headline where we talk a lot about it but it does not affect the market, in an environment

with this many headlines and action, you get paid for not china to beat it and just writing it out. >> what is your expectation for return in at least for the year? is it was a percent or 9% come you should be getting out, right? why take any risk cousin it sets your total return profile for the year. you have to be concerned about where you are putting your risk capital to work. there is massive headline risk associated with the marketplace. there will be a lot of volatility or volatility has come down in the last several weeks. we now live in a high teens volatile world. >> we go along now globally. >> i think it is supposed to belong equities still and it is supposed to be risk assets in the u.s. and long risk assets as well, and europe has tons of problems and issues. they are just have in the benefit of the rest of the world going up in this point in time.

structurally, real issues. you want to be long risk assets. you want to be looking for things -- the deal is probably going to be watered down anyway. along the u.s.s market, the s&p 500 gaining 45th straight day although there was a bit of a feint in the final 30 minutes of trade. >> tech outperforms. we have a new winner in terms of the biggest market cap it is apple once again. >> the banks continue to drag. lower.elds are >> i think it is striking the degree to which the nasdaq has continued to outperform especially given how much we talk about the weakness of the tech companies and how much of that was the focus. the selloff like was not so much about their weakness.

>> let's dive deeper into the action. i am looking at the s&p 500. up five days in a row. almost taking out its 200 day moving average on a closing basis. this is a greater than one year chart. nor the bearslls are in control. it's a battle. the s&p 500 was above the 200 day moving average. telling you the buyers were in control. brittle fourth quarter when the s&p was down 20%. below the 200 day average, now resistant. now, wondering whether it would get that average. it has not yet. even if it does, it is not going to tell us that much because of the sideways range.

the last high and last low. right now, some sign that the bulls are going to take control. >> i am looking at snap shares which are waiting for the earnings report any minute now. let's look at this company since its ipo in 2017. brutal is the only word i can say. down a 60% in that time. what will the competition be like? also a question of their leadership given that they lost their cfo after less than a year. swirlingquestion around this one time at media favorite. >> after the bell, we are going to get walt disney.

surprise us. this year, it is different. trying to absorb the assets from 21st century fox. they're also trying to start a streaming service to compete with netflix. this stock has lagged for quite some time up to it i have percent this year so far. belown mind, we are 8% the all-time high set in 2015. the top and bottom line numbers are not going to matter so much as cost. keep in mind the asset the -- acquisition of 21st century fox. also, the streaming service that will compete with netflix. ony will have to spend money new programming and marketing.

>> we have had the reports coming from electronic arts which is been gaining right now. that is after we saw $.86 third-quarter earnings per-share. it looks as though they are raising their earnings per share -- cutting their adjusted revenue 4.87 5 billion. they are downgrading that seeing their adjusted earnings per share. >> the third quarter also lower than anticipated. we will continue to keep an eye on this one for you. we are also waiting for disney and snap result.

as we look ahead to disney's hadlt, clearly does not telegraphed to investors that they are going to spend a lot of money and that will impact profitability >> it is about the development. >> there you go. it beats the highest estimate at adjusted earnings per-share. it is slightly ahead of estimates. that is well ahead of the estimate. >> so much for our managing down expectations. revenue overall, $15 billion. if you look at their shares, they are trading higher after hours up by almost 2%.

>> we have a statement coming from the ceo saying building a robust direct to consumer basis -- business is our top priority. the keeping was the cost we were wearing about. >> this direct to consumer product that everyone is talking about, where is it and how will they compete with netflix? there are some big questions. investors are liking what they are seeing here from disney. >> when did we get hard numbers that we can look at? >> i think it will happen in april. their meeting is to lunch and unveil what the disney plus and espn plus products are going to look like. is going to be in there and what will they charge for it? then, investors can model out what will be for the service.

without hard numbers, people are thinking the worst. there is little to no eps growth for this company for the next two years. that is because they are investing in this new business. >> we are seeing the dollar weighing in on plenty of earnings at the moment. >> i think the dollar has hit its peak during this cycle. we're probably not going to have the same pressures as we had in the past. emerging markets are doing better in anticipation that the dollar is going to not go up and alleviate some of the pressure that has been in the marketplace. story for thes a

last year and that this year coming up. hashe world entertainment announced a new ceo. john reilly has been appointed coo. >> we should go back to disney. the quarter for increased 5% to 6.8 billion in terms of their operating income, that increased 10% in that part of the business. ofarly this is a real area growth. >> we are talking so much about the media side in the battle with netflix. disney has all of this other stuff. how is it looking? >> theme parks is about a third

of their business. they continue to invest and get great returns on their part business on a global scale. you see similar numbers coming out of comcast. they continue to dominate box office globally. >> we talk about media companies, everyone is talking about the breakup value. with disney, they seem to believe in the idea that the conglomerate makes sense and it should stay as one. >> disney has been disney in our minds for so long, it is hard to look at it in every pieces. you have the movies and the content along the theme parks. it is hard to say these will be

separated. there is total synergy in their real business model. about this.ou think of such disruption? even in areas like alphabet, people are scurrying -- we have earnings from snap. versus third quarter. that beats analysts assessments. >> you know people are pessimistic when you see 7% rise on unchanged users. >> 100 86 million daily active users. that is not a lot. >> not compared to instagram. that has been the key. in, copied, and leapfrogs. >> if you are snap, you are in no man's land. audience have a big

compared to facebook and instagram and messenger. are they even a viable digital advertising platform? advertisers don't see it as a place where they have to put money. the question is maybe they should just be sold. they are still a viable product but you can't compete. people at have said it is interesting technology but it can be copied quickly. which facebook has done. >> i think snap has to be sold. they are going to lose market share over time. the trend is in place and that is not going to change. they have to do something or they are going to fade away. >> i have white hair, i don't

use emoji's. >> we are seeing revenue coming in shy of their own estimate. eclipsingslightly their forecast estimate. they are still 30% growth when you are looking at what is happening in terms of revenue. in going quickly on a day we talk about stock buybacks. disney will not be doing it. what do you make of the talk about buybacks? >> it's crazy to think that the government has a better thought on the structure of them with the companies do. smart from the companies perspective. they have been borrowing cheap and buying back their stock. the earnings go higher and it makes their stock prices go higher. a day of reckoning is coming.

the chief of they have is not going to be in place a year from now. that is the day of reckoning. goldman sachs, there was a story where they are looking to pare back their fixed income trading business because they are not making enough money. the return in equity characteristics of fixed income is going down. that means there is not going to be that much capital in play when the triple b's out there get downgraded. half of the investment bonds out there are triple be rated. that is a scary number. changehave any material in that, that is going to be a key pressure point for the economy. that is the story of 2020. >> some a things to change once interest rates go up. >> we're a rolling credit bubble. thank you so much. great perspective.

that does it for the closing bell. romaine bostick is stepping in for what'd you miss. from new york, this is bloomberg. ♪

>> i'm caroline hyde. >> i'm romaine bostick. >> i'm joe weisenthal. >> we have disney up 2%. electronic arts up significantly .

the relief that floods the market would it just managed to keep stable. for more on snap, let's bring in sarah frier. the numbers are better than expected. what jumped out at you the most? >> it was a low bar. people expected snap user base to shrink. stopped said revenue would be the highest at the range they gave, it was within the range's of didn't have a high bar for them. they exceeded it. at thesage if you look prepared remarks, it is all about stability. he is trying to make the case that snap is no longer going to

the scandal management executive turnover problem that it has been this past year. i don't not that is going to be credible, but we will hear what he has to say on the call. maybe there is something to look forward to hear. >> we will let you listen in on that call. , let's welcomep our guest. of a company that specializes in advertising on social media platforms area. viral.p companies go means, has snap been a useful tool as of late? >> yes. from a brand engagement perspective. i have not seen anything else on the market that can reach that level of engagement that snap

can. i think it is a really underpriced attention over there. >> sometimes i see what gets posted on the main page of snap. it does not look like a high-quality content that a lot of premium brands want to be associated with. is that a fair reputation and does that affect the type of advertiser that wants to put their brand on snap? >> with every growing platform, there are always concerns about the brand of safety. more of thes to premium brands, i have seen people election l, gucci, advertise on snapchat. there are things that snapchat can do to improve their brand of safety. all of that just comes with the growing pains of building an ad platform so quickly. taking they are take --

steps especially with their premium formats where you can advertise. i think quite a lot is being done. you are right, not all of it is currently the most tasteful thing. there does seem to be a generational demarcation between the social media platforms. facebook skews older and snap skews younger. twitter is middle-aged journalist. [laughter] you tell your clients is the best way to reach a broader audience and make their platform more palatable to people who are not necessarily their core customer? >> we talk a lot about this idea of entertainment. advertising entertainment. audience has the highest proportion of things

like ad blockers. messageo shove your down their throats is not going to work at all. idea ofabout the advertising entertainment were you confuse advertising and entertaining people. that is where things like snapchat and new were platforms like tictoc, that is where they have a massive advantage because especially with a lenses, you can see that inherent. you are being a billboard for them and advertising for them but it is also entertainment. that is the way the brand should be thinking about when they are trying to reach a younger audience. snapchat is enabling them to do that quite a bit. outhank you for staying late for us in london. coming up, buyback blowback.

this is bloomberg. ♪

>> in the new york times this sunday, is written that money spent on buybacks could be better spent on things like benefits and are indeed. -- research and development. the former chairman and ceo of goldman sachs disagrees. he took to twitter saying a company used to be encouraged to return money to shareholders when it could not reinvested. the money doesn't vanish. it gets reinvented in businesses that boost the economy and jobs. let's get some perspective.

our guest joined us over the phone. in theory, if you limited buybacks that would leave more money for the corporation to spend on wages and research and development and things that people claim to want. what would happen in practice if legislatively buybacks were restricted? >> thank you for having me. this should generate a ton of hate mail so i appreciate that. [laughter] i think that people oversimplify this. if firms were basically barred from buying back shares, they would just retain more of their profits. they would just sit on the money. that is the root of what people are trying to criticize. they are saying corporations are making too much profit. distributed into

the economy. criticizing buybacks or dividends is an inefficient way of critiquing what these people want to critique. it puts the cart before the horse by critiquing what they are doing with the capital rather than critiquing the fact that they think firms are retaining too much profit. >> there are some major flaws in the proposal that was put out there. there have been some legitimate over the last few years that some stock buybacks aren'tve been done necessarily the best uses of that capital. how do you respond? >> there are some fair critiques of buybacks. mainly the employee base compensation ones that are used to offset stock issuance. then, some of these deals that are based on debt.

those are fair critiques. in general, those are not the majority of the ways that these buybacks are being implemented. it is a little bit of a sloppy generalization. briefly, do you see any way to incentivize them to raise wages or invest in research and development? >> no. the bottom line is that the main reason firms are buying back shares is because those are low risk ways of returning capital. paying higher wages and investing in research and development, those are tough decisions. unfair in the way they critique this because they don't understand how difficult those decisions are. ofse are low risk ways returning capital to shareholders. ways ofors have fighting these problems that are more direct. >> thank you.

from new york, this is bloomberg. ♪

i'm mark crumpton. bloomberg has learned that president trump has decided not to declare a national emergency on the u.s. border with mexico during tonight's state of the union address. the president suggested last week he might declare an emergency during or shortly after the annual speech to congress. that declaration would allow him to circumvent lawmakers and begin building a border wall. has decideduse tonight's speech will focus on unity. at has his doubts. president ands his penchant for hyperbole, he will probably say the state of our union is stronger than it

has ever been. thanks to him. knowing this president, he will rely on distortions and made up facts. this leader the american people. the only question about the president's state of the union, how often will he distort and make up facts and resort to fear and divisiveness? schumer was making his comments, the president tweeted that he had not even seen the speech yet. representatives of the taliban including a former president are meeting in moscow for talks. the meeting is seen as another step in a process aimed at resolving afghanistan 17 year war. one that has accelerated since the appointment of the u.s. peace envoy last year. the meeting sidelined the afghan president's government which is criticized the gathering and did not attend. that theerstand

government in kabul needs to be part of these negotiations. we wished that he would have been here today. that is an issue that has to be between the taliban and the afghan government. >> those talks opened as at least 21 people were killed in the latest taliban attacks in several locations across afghanistan. pope francis is praised the courage of a young girl who broke through a police barricade in upper darby to hand deliver a letter to them. -- so quickly that police could not catch her. francis told reporters, this child has a future.

you have to have cart -- courage to do that. he said there i say her poor husband. global news 24 hours a day on air at a tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. >> breaking news on apple. a senior departure. a senior leaders said she plans to depart in april. .he will leave the company a replacement has been named. keeping a female executive in that role. just a quick recap on earnings. disney surprising investors.

profit came in at dollar $.84 a chip -- or share. snap surprising investors the shares of 16%. the most notable issue is that snap did not lose any subscribers over the. e.a. managing to disappoint on the downside. . it seems that the ceo is apologizing saying that there is intense competition and transformational change. they did not perform to expectations. they are down by more than 10%. we are turning to government and politics. a president trump will deliver

his second state of the union address at 9:00 p.m. eastern tonight. coming off of a fraud partial government shutdown. he is expected to touch on infrastructure and trade. this comes against the backdrop of the shutdown. all of the emphasis on the southern border. i think it will be reemphasizing that. his chance to make the case that his administration is successful. >> i think any positive whatsoever about china will be interpreted that at the end of march we will have a deal. signswill be looking for that he is doing the victory left on trade ahead of what is likely to be a summit with xi jinping at the end of this month. similarly that he is not starting another round to the shutdown. it will be great to see something on infrastructure think we have given up on that. >> for more on the state of the

we welcome our guests. you are a former campaign manager for jeb bush and you worked for john boehner. when you consider the trump environment for the speech, what do you think you could say that would not just rally the republican side but could potentially get some democratic support for some of his policies? >> the most important thing that wecan do is announce that are going to have some sort of agreement on border security. i will call it a wall, you can call it anything you want. we are going to move past this issue so we can get things done on infrastructure and other areas where there is common ground. there is a very narrow window of time to legislate here before the 2020 presidential campaign

that consumes all the oxygen in the room. when he to use that window to get some big things done in places where there is common ground between president trump's priorities and those of washington democrats. we cannot do that unless we get past the wall fight and the threat of another government shutdown. what about the effect the bully pulled it has? to have the speech televised in front of everyone. what kind of pressure does that put on congress for its own agenda? this make herlike or will more difficult we just talk about something completely unrelated tomorrow? me start off by saying i agree with michael on this point. the president should take shutting down the government off the table. in terms of where the stakes lie, it's the president is facing a tough hurdle over the

next few hours. to deliver a speech that he has said is going to unite the country. all the democrats have to do is sit back and listen. able to giveo be them an opportunity to find common ground whether it is on infrastructure or trade or other issues? the pressure is on the president and the white house. they have created that pressure on themselves with a 35 day shutdown. going into the speech saying i am going to be a uniter not a divider. he is talking to three audiences. democrats, republicans in congress some of whom are disturbed by what happened with the shutdown. finally, he is talking to some of the voters in the suburbs especially women voters who left

the republican party in droves. what is his message to these voters? how can he bring them back to the republican party? there is a lot at stake here for this white house. the president has to deliver. advising trump to speak beyond his base today or stick to the key themes? >> one of the key things he can do today is speak to a broader audience. there is 40% of the american people who will be with him no matter what. 40% does not win a reelection. if he is going to broaden his coalition, if he is going to be successful running for reelection in 2020, he has to reach out and find areas of common ground not just throw more red meat. >> is possible that the democrats will allow for that? something like infrastructure that was the ordered by the democratic party during the obama years, now we are on the

flipside of that. is there any possibility the democrats will be able to work with trump? >> i believe there is. infrastructure rate -- unites republicans and democrats and the voters. the devil is always in the details. what infrastructure are we talking about? what is the future going to look like? those details can be worked out and they should be worked out. this is a place where we are investing as a nation into the future. there is no question about that. democrats have to have something to take come to their voters. they work with a president get something signed into law. infrastructure is where that can happen. >> great to have you with us. coming up, hundreds of millions of dollars in a canadian crypto

exchange inaccessible. does this support the argument for more regulation of crypto? ♪

>> the fallout from the death of a crypto exchange founder is raising questions. when the ceo of a cryptocurrency exchange died, the keys to the digital wallets of the exchange customers were completely lost and now millions of dollars remain stranded. let's talk about the implications. even in the crypto world, this is a weird one. andceo of an exchange dying

apparently he was the only one with a password. now they are trying to decrypt the keys. story andake of this what do you say? how can people be confident this is not going to happen? >> you are absolutely right. the senate unfortunate thing. what this illustrates is that bitcoin is just like cash. cash in your wallet, you lose your wallet, the cash is gone. bitcoin is controlled by keys. you have your keys on your phone or in this case a guys laptop. the laptop or can't find on, it is gone. it is hard to make people understand. sometimes, we won't money that works like cash.

only wanted to work in the digital world were you just want something that works like a face-to-face cash transaction. and ant a necessary evil unfortunate event. >> you call it a feature. does that become an impediment to cryptocurrency becoming adopted more by the mainstream financial market if you don't have any sort of protection? >> i don't think it is an impediment. there are more mature companies out there who do a better job with security. there should never be a single point of failure. there should be multiple backup keys. multiple control persons. there should be processes in place to deal with things like death. you don't need to hold your bitcoin as a -- at a custodian.

phone in dropped the the toilet? what is going to happen to my bitcoin? i know i have a backup that i gave to my lawyer or someone i trust. you can even use multiple keys to set voting rules for your funds. so a lawyer or your spouse would have to agree to move the funds if your key was lost. there are amazing controls you can have when money is programmatic. we are suffering growing pains still. fundamentally, this technology is better than the traditional means of moving money around the world. i will also say that from a regulatory standpoint, there are protections in place. we have laws that make it a requirement that you're going to get licensed if you're going to run a bitcoin exchange. i am not sure if this wasn't done a good job protecting

people in this situation. i don't know much about the state of regulation in canada. i will say that we do have regulation here in the u.s. that should prevent some of these types of unfortunate events from happening. people who are using an exchange, what points of due diligence should they use to -- so they can have the protection and place? >> number one, if you are not going to be actively trading, maybe you should not use an exchange at all. there are great providers that just do custody. sometimes these are referred to as multi-providers. if you're not interested in daytrading which most people should not be, you just want to use it and enjoy it and try the technology, you probably don't want to trust it with a big exchange. if you do want to do a lot of

daytrading, there are exchanges out there that have good exchanges in place. multipleage but also control persons who have keys and processes in place if those control persons disappear. those are the things to look for. also, look for one that that is regulated. >> thank you for your advice. let's get back to the apple headlines. is leaving since serving since 2014. the head of regional operations is exiting onto personal and professional pursuits. previously the ceo of barbarity. now the head of human resources will take over.

from makeup cash to pizza dough, yesterday we learned that an activist hedge fund thinks it has the right recipe for papa john's. investing $200 million into the business. this comes after the report the papa john's was abandoning its try to find a buyer. >> exciting time for the brand. we have had so much positivity. the energy is well beyond the $200 million. we found a great partner. there have clearly been some challenges over the past year. over the last five months, we have been through a conference of the strategic process to identify new partners for the brand. we identified what i think is the best solution to partner -- move the business forward.

i want your viewers to note that this is truly a partnership. you obviously did not come in in a hostile way. it is a brand that we followed for quite some time. i believe that it is the best product in the space. we love the pizza and that is where you have to start. we have been watching it. the world has been watching what is going on with papa john's. we wanted to help. we saw this as an opportunity where we could get involved in used our expertise and leadership and at some capital to get involved and be able to help the company and return the brand back to where it should be. consumers have to come back and recognize that this is the better ingredients better pizza company.

thes on the quality of product and away from distractions. >> it is not immediately customers are focused on the ingredients. >> it is about getting the message out. or otherocial media means, we need to make sure the consumers understand the quality difference, the ingredients of difference, and who we are as a company. we believe they will come back and appreciate it and consumers deserve that quality. >> this is coming and running the business -- >> it is similar to what we got involved in darden. it is a pizza company instead of a large restaurant chain, but all of garden will something where we recognize it was a terrific brand is great products that have lost some of its improving thend

guest experience. that has turned around. they have done a wonderful job. it was a team effort to improve the guest experience. it is the same thing here. it is a terrific brand and great product. best in the space. best ingredients. when he to improve the guest experience all the way through. the quality is fantastic. but the whole guest experience, make sure the guests are getting that message. >> coming up, talking about estee lauder. this is bloomberg. ♪

risinges of estee lauder after the company boosting its

four-year profit outlook. why are certain companies managing to make it work in china? >> i have been asking the same thing. only saw apple disappointing, we thought it was a broader consumer story. i am going to think it is a little bit more company specific than we like to think. apple, every time i spoke to analysts they said it's just there not making iphones that are appealing enough to the chinese buyer not to mention may have local competitors. they don't have as much brand loyalty. estee lauder, it was not just china it was the rest of asia. you can see the gtv chart. the bars in white growth in sales in asia in comparison to other regions.

ralph lauren missing estimates when it comes to their asian growth. their ceo saying that there are a lot of questions around china and a potential slowdown but they are not seeing that on the ground in q3. >> is this rebalancing? is that the consumer picking up the slack of the chinese demand? people have been saying potentially. income growth is still happening. also just want to mention, chinese new year this whole week. the year of the hague. seven days where chinese consumers will go out to buy on a shopping spree. >> great analysis. it is the year of the hague. we wish everyone a happy chinese new year.

>> bloomberg technology is up next in the u.s.. have a great evening. this is bloomberg. ♪

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emily: this is bloomberg technology. coming up, snapped sores in after-hours trading. how thetalk about social networking platform is attempting to stage a comeback. plus, a big apple the torture. -- big apple departure.