war between the u.s. and china. prefer to likeld it and not so much europe. other factors of course. thelet: there, you have closing bell appeared and other day of gains for the s&p. we are at record highs. then average.r the dow is 6% below the 20 day average. 29% in 2019.up the nasdaq, up 35%. joe: that is a good year objectively. scarlet: everyone is chuckling because nobody expected it. you compare it to last year at this time, what a change. there is a good story on the bloomberg. joe: last year was crazy. it was panic day in and out. it could not feel more different.

scarlet: let's check in with our reporters. abigail, what are you watching? abigail: i am thinking about the s&p 500 that did move up. this chart doesn't show a little bit of the panic. we looked at it many times. there is the tail end of last year's big selloff. this year's big rebound. we were talking about the range between 2800 and 3000. it looked like the range was going to break down. in october, we had a higher low. the entire range fulfilled the target of 3200. we are now above that level. above look at how far we are the average. history repeats itself. it looks as though we will have consolidation ahead. the rsi at 76.

once it starts to turn down, it could suggest the men some is going to come back off. today, and this year, very bullish for stocks. taylor: so often in san francisco and new york, we talk about how often tech is outperforming the s&p 500. up just under 35%. top four companies in the s&p 500 are accounting for the rally. apple alone amounts to 9% of the rally. the iphone maker up 70% this year. that means $370 billion of market cap was added thank you to apple. research were the winners. for 2019 wasise

the outperformance of hardware relative to software. >> i'm taking a look at wti crude oil, which is rebounding today. kuwait, reaching a deal with saudi arabia. it will also help u.s. shale explorers boost on time. tolysts say oil as likely remain in check during the year 2020. date, oile a year to is higher for the year. analysts see the outlook more mixed because of demand as well as out put production, opec production that will be offsetting the output from other countries. renita and the rest of the market team.

vincent and san dip. looking into next year, a lot of the debate had to do with international exposure. we continue to have these phenomenal years for the u.s. -- youot have another have to look overseas. do you buy this view? sandip: it is tempting to look at the valuation between the two markets. it has turned out to be a value trap. there is reason to be optimistic at the margin. ik good politician, i am going goodlk both -- like a politician, i'm going to talk both sides. what should help the foreign market is everything that has been a headwind so far is becoming neutral. it could become a tailwind. the de-escalation of tensions

should see the dollar weaken. there is a currency boost for international markets. this is another driver for profits of multinationals. stocks that have underperformed relative to u.s.h international over should show better performance, but it is cyclical and tactical in nature. there is no place like the u.s. economy. scarlet: how underinvested or invested are folks in the u.s. market? people might have been taken by surprise how strong this rally has been. they have been coming in and buying the div as we have seen. is there a lot waiting on the sidelines? sandip: i think so. this has become the rally everyone loves to hate.

i think they were two by surprise. there was this fear of missing out. handwringingmuch that a recession was around the corner. there was no euphoria. there was no complacency. there was a lot of angst. people have been caught off guard. there is a lot of dry prouder. from a contrarian point of view, i think that also bodes well for continued strength in the u.s. stock market. question about relative performance on u.s. equities is going to hinge on what the dollar does. what would you say is consensus about where the dollar goes next year? like thei did not dollar coming into 2020. there are great opportunities as the trade situation has simmered for emerging market stocks and currencies to rally.

it is starting to become the popular trade. i think it can continue for the first quarter. after the first quarter, i am not so sure the dollar stays on a weaker trend. we will see some fiscal spending in the u.s. just to get us into the election mode of things, that will probably rally the dollar. as for corporate profitability, a weaker dollar is not a good thing. treasurers and cfos are very slow to turn the boat on a head straight. if they are taking it nice and easy, they will not jump on that quickly. it depends on how far and fast it goes and whether or not it impacts earnings. scarlet: it feels like everyone agrees with the consensus. we have not really heard anyone say ica recession coming. people are pretty optimistic

overall. isn't that -- >> i hate trading with a crowd to be honest with you. to some extent, it is reasonable. there are no recession warnings looping. the trait -- a looming. the trade situation has moved to the back burner. briggs it is months away before any conflicts start to show up it is month away before any conflicts start to show up. we are going to see -- the one thing we could see is an increase in volatility going into the first half of next year. joe: do you see any risks that are not the obvious risks anyone can identify? sandip: we have to be vigilant. we are not quite out of the woods yet. any of these factors that were listed as a positive could turn

on a dime. brexit could go awry. let's put this trade situation in perspective. everybody has been holding their .reath for the last 18 months this resolution is a milestone. it is not a destination. we have started a loan charity that will last several years -- a long journey that will last several years. scarlet: it is on vacation right now. that does not stop anything. joe: that never stopped me. scarlet: congress is on break. sandip: we have not talked about the fed, but they could not have been clear in their communication. unlike a year ago when they raised in the throes of the slowdown, they were so clear. adjustment.idcycle

they paused, which was an endorsement of the u.s. economy. they said no more rate hikes. scarlet: the fed has disappeared from view. our thanks to everyone here. vincent cignarella and son andip bhagat. what did you miss is up next. this is bloomberg. ♪

scarlet: live from bloomberg's world headquarters in new york,

i am scarlet fu. joe: i'm joe weisenthal. scarlet: and other day, another record high. thin trading as we begin a short trading week. is, --stion investors may take moment -- tesla arranges one and a half million dollars in financing from the nation. do not bet on an ipo. draft gains goes public after cutting a three-way deal. joe: joining us with the latest is white house deputy mike joining. thank you for joining us. we will go to the news this morning. us withinize this for the trade dispute for the united states. how much does this relate to trade versus the ongoing process

by china to continue to liberalize this market? >> you kind of hit the nail on the head. this does not directly relate said the trade dispute and the trade deal under negotiation. it is a positive signal. it shows china is willing to reduce tariffs to let in more goods and liberalize particularly on items like pork related to food inflation. it also sets the stage for a tter -- obviously, if the tariff rates are lower, it is easier to bring in or u.s. imports into china. scarlet: it does not directly relate to the phase one deal we are still waiting to get signed. what is it due in terms of building trust between the two sides? you want to see this happen rather than imposition of

tariffs. >> that is the broader goal the u.s. has, to open up the chinese market, specifically to u.s. goods. this applies across the board to everyone. loweringthey are barriers to trade. it is a positive mindset for all. joe: in general, let's go back to the trade dispute we have. we still do not have a signature on the phase one, right? mike: absolutely. at least publicly, we have not seen a lot of the important details. a lot of this stuff is still to come. as -- i think it was sandip who was saying you never know with this administration. there could a change of heart. things could change radically. it seems we are moving in the right direction for the phase one trade deal. the politics and economics are

all in alignment. you really don't know what will happen until they have signed on the dotted line. even then, there has been a lot of problems with the chinese government. contributes to the skepticism on our side. will we ever know what is in the trade deal? withoutis get signed investors understanding what has been agreed to? mike: there are key provisions it's they say will be classified. of $40ve the goal billion a year with an effort to in a year inllion agate purchases. they say they have agreed to targets for specific commodities, but they are all going to be kept secret and classified so the markets do not know. we will see if that remains the case and if they even realize those. that is a key element that will stay secret.

scarlet: got it. ing giving us a look as to what to look ahead to. coming up, draft kings is going public as part of a three-way deal. we will explain what this means for the thanasi website. this is bloomberg. -- for the fantasy website. this is bloomberg. ♪

scarlet: it is time for a look at what stories are trending across the bloomberg universe. terminal users are reading about york capital management, which is shutting its main capital hedge fund. york is the spending redemption from its credit opportunity fund. this as the firm struggles to meet withdrawals. capital tourn

investors in january. over at bloomberg.com, we have a story on fedex founder and ceo fred smith has unfinished business to attend to. a promises to the liver turnaround at fedex. investors are unconvinced on whether his retooling of the ground network will help a fedex squeeze more profit out of the rise of online shopping. he says he is confident he has fedex on the right path. quick take reports americans may fall behind on their credit highest in the decade. in 2010 be the highest according to transunion. you can follow all the stories on bloomberg.com and on quick take by bloomberg. joe: draft kings is going public as part of a three-way deal with

gaming technology provider sb tech. be bought by ato holding acquisitions. and combiningl with sb tech. >> allows us to do all three in one transaction. a bit of a complicated transaction. it was also efficient in the sense could accomplish all three objectives and do so in a short timeframe. joe: to help us break down the deal, we are joined by evan. what is the third company? what did they contribute? >> sb tech is a gambling technology provider. they do all of the back end stuff. kings, the to draft technology behind what you are seeing is not draft kings.

they partner with a third partner to do that. that is not sb tech yet. inft kings wanted to do that house. it is cheaper, and you have exclusive access to the things you want to offer. that is part of the reasons why. jack kings has been eyeing sb tech as a takeover candidate for a long time. there was a thieme we thought they would buy sb tech. they found a deal that would enable them to do that. scarlet: you say how they want to take it all in house. what about the competition? it is part of something bigger now. eben: to understand why draft kings needed money, look at the competition. they just murdered with the canadian giant stars group. -- they just merged with the canadian giant stars group. these are much bigger companies

than draft kings in boston. the main reasons they needed to get this done was because they needed more money to compete with these companies. joe: how do they stand out? you say there are a lot of players in this. find a nicheentity in this environment? eben: depending on how your gambling,lizes sports some are only letting one provider operate. isnew hampshire, draft kings your only option. if you are a resident of oregon, draft kings is your only -- sb tech is your only option. there is a little bit of difference between a state like new jersey and pennsylvania where there are a lot of operators. some companies are going to give you a bigger bonus boost. a lot of them are doing different things to lure

customers in. i hope there is enough of a distinction that if you are a jersey, you will have a couple different apps. there is a little bit of difference they are trying to exploit. scarlet: thank you so much for the latest on draft kings, which .oes public with this deal we have some headlines on boeing. boeing told its suppliers for the 737 to halt parts shipments for a month. shipmentnt says the will stop in mid-january. it will be halted for a month. we see boeing shares halted slightly, down 1/10 of 1%. had a big rally in trading today because they have ousted the cao. the chairman has stepped in. .oeing is making some moves it needs to get on top of the story.

for a while, it looked like it was trying to control the narrative. clear this was boeing's fantasy timeline. the failed effort last week to get that thing to the --ernational space station there was a further embarrassment. -- it had ae that company that had problems getting things right. the little things were big things. scarlet: it chips away at the company's credibility. they cannot have that go on anymore. joe: a quick check of the latest business headlines. tencent wants to boost investment in europe. that is according to the tech

cloud shape.ean the company aims to great 2000 to 3000 jobs on the continent. its most promising cloud market beyond china. the federal reserve bank injected $49 billion in temporary liquidity in financial markets. the fed conducted operations in the form of repurchasing agreements. one added overnight liquidity while the other added 15 day liquidity extending into the new year. eligible banks -- installment of the star wars movie franchise run in more than wondered $75 million in north america on its opening -- more than $175 million in north america on its opening weekend. it is still likely to be one of the top releases of the year.

sales could exceed a billion dollars globally. a billionaire, a billion there. joe: did you go see it? scarlet: i am not into that. i think romain is watching. joe: that is probably what he is doing today. scarlet: we look at his review. he was a little bit disappointed with the reviews on rotten tomatoes. joe: it seems like there are a lot of bad movies. i was seeing reviews of the cats movie. when it comes to movies, they are trying to appeal to a global audience. tv is where it is at. coming up, a tale of two halves. we will look to the year ahead with spencer go but -- spencer bogart. this is bloomberg. ♪ what are you doing back there, junior?

since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of. he knows exactly where we're going. my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing.

mark: i am mark crumpton with bloomberg word news. president trump will hold his first rally in 2020 in ohio this month, potentially coinciding with the beginnings of the senate impeachment trial. the trump campaign says he will keep the america great rally in toledo. trial ise impeachment expected to start that week. ohio in 2016. a community near the canadian order known forecasting the needn's first ballots may to skip that tradition in 2020.

election officials say they are missing a required official needed in order to hold an election. the current population is four. investigators are going room by room at a las vegas apartment building where six people were l and 13 were injured in a fire over the weekend. authorities say the predawn fire appeared to start saturday around a stove, forcing some residents to drop from upper floor windows. the fire marshal said there had been passed complaints at the apartments. none were pending at the time of the fire. >> it is common for buildings of have maintenance issues, doors that open and

close properly and to have issues with a fire alarm system. it is like having a laptop computer that is 30 years old. mark: officials say the structure was built in 1972. australia's most popular state is being hit by a catastrophic fire conditions. at least nine people, some of whom include firefighters, have been killed. >> we should not underestimate how much of the natural environment has been burned. that has serious ecological impacts as well. mark: new south wales is in seven-day state of emergency with around 2000 firefighters battling 100 wildfires. the deteriorating conditions forced prime minister scott morrison to cancel his family vacation in hawaii. returning home, he apologized for causing what he terms anxiety with his unannounced

trip. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. a tale of twoen halves. discuss, spencer bogart, a partner at blockchain capital. thank you for joining us. i guess it was a good year for bitcoin. setting aside 2019, what do think is a key thing you are most looking forward to in 2020? spencer: for 2020, the main thing i am excited about this to see this virtual construction play out. havehe past two years, we

people finally acknowledge in the permission less blockchain's are the driver of innovation. it is not the enterprise blockchain's people toyed with. bitcoin ishain not officially dead. spencer: that one is officially dead. people say, i recognize these networks. let's go ahead and launch 3.0 and 4.0. a lot of the blockchain's have started to hit the market. they have not attracted a lot of developer attention. momentum has shifted back to, let's build on the things that are working. stack of build up the the protocols, we are going to see more and more useful applications and services. that is what i am excited about. thatet: dozen example of -- does an example of the include something like libra? spencer: it remains to be seen

exactly what form libra will take when it launches. i would qualify that in the horizontal competition era. if there is anyone who is going to compete horizontally, it is someone like facebook. i would not say it falls on the vertical construction camp. 2020, the block reward for miners is going to get cut in half. people say the vintage is going to lead to a search in -- a surge in price. who side are you on? spencer: i guess i am somewhere in between. it is priced in the truest sense. there are no risk free returns to be had. ?ill price rise around that is a nuanced question. there are two factors to

consider. ae halving represents schelling point. there is a significant sum of capital that is in that position. we run a survey every 18 months that surveys more than 2000 american adults. is kindhe things we ask of questioning their conviction. agree, what extent do you or disagree that most people will be using bitcoin within the next 10 years. in the spring of 2019 when we asked this, 33 percent of people and 43% of those 18 to 34 said they somewhat or strongly agree. we also asked them about their propensity to purchase. how likely are you to buy bitcoin in the next five years? to 34 said they are very or somewhat likely to

buy in the next five years. people are relatively indifferent as to whether they purchase today or tomorrow. it drives more purchasing. importantly, this reflexive feedback loop drives the bitcoin market where rising price drives more infrastructure, more computing power secure in the network. all of which feeds into a rising price. will be ahe halving big catalyst. to look us a landmark ahead to. how do you think about bitcoin and its price action? is there a correlation we can people --or are there or that something people who are looking to get into are not

thinking about? spencer: bitcoin is radically uncorrelated. it is shocking how uncorrelated it is to nearly every other major asset. a lot of people like to sell the as the main thing for why you should have allocation. we are going to see bitcoin normalize and become a little more correlated with something else in the market whether that is a risk on or risk off assets. scarlet: we will wait to see how it shakes out. thank you very much. spencer bogart joining us from san francisco. coming up, banc of america ceo brian moynihan discusses overleveraged companies. this is bloomberg. ♪

joe: banc of america ceo brian moynihan sat down with bloomberg to discuss a wide range of topics. david westin asked about the leverage portfolio. >> the exposure on your books is relatively small given the size. if you go way back, we have lending the commercial and the lending book on the commercial side. that is how you manage risk. you go back to the question of what can go wrong, we view anything can go wrong. you manage risk by having diversification. when you think about leverage finance, we have always been is, good kid the question other large companies tend to have problems when the world flows down.

s 101.s economic we have to underwrite with the debt turns. you here, let's get concerned when the market moves away from findraditional levels to higher levels from other providers. it usually reverberates back. the real concern is, is there too much leverage in certain companies? that happens all the time. the question is, is enough of a market share that will impact the economy? >> with the cost of borrowing where it is, we sell an awful lot of debt. isn't it and evitable -- isn't it inevitable? the federal government, the state government.

you always worry about -- when you go back and look at all financial crisis. excess leverage is the thing that tips them over. when people are talking about the biggest asset class for consumers, the home has been very well structured. the economy has grown around it and 21trillion in size trillion etc.. you have seen the home mortgage loan totals barely giving above -- barely getting above where they were. you can see how inflated they were. we feel the mortgage structures are good kid we feel the prime business is good. you do not see -- even though the volumes are high, and the low rates allow the servicing to lower, which stimulates the it isy, the reality is

always a question of how many debt turns a company can have. we try to bring the market to that. on the consumer side, it is the same thing. these are prime borrowers. it does not mean there might be other people doing something different. scarlet: that was an exclusive interview with brian moynihan, banc of america chairman and ceo. says theremier government will continue to lower ratios. the amount increase of cheap funding to commercial lenders as it seeks to boost a broader economy. take hardwood to wealth management. sky news reports the purchase price not include a significant premium to the share price of

2.53. the takeover is set to be announced to the london stock exchange later today. softbank's telecom arm upping their bid to buy out the public shareholders. a three and a half percent bump. softbank founder hopes to create a japanese tech champion to compete with rivals such as .oogle, amazon, and tencent it is time for smart shards with abigail do -- smart charts with abigail doolittle. you are looking at macro fundamentals. abigail: today, we are looking at a charted picture of the fundamentals beneath the charts. idm is michael sheldon of financial. -- of ourdm financial.

here, you have the corporate profit outlook over the last decade clearly, it is going the right way. michael: i thought this was an interesting chart to bring along. it shows the corporate profits going back to 2010. corporate profits have tend to trend higher over the past decade or so. there are a couple things that tond out if you go to 2011 2012. there was a bit of a consolidation word look like earnings were plateauing. in a 2006 -- in 2015 to 2017, earnings plateaued. that leads us today where in 2019, profits have either tried water or have been down slightly . looking ahead to 2020, hourly -- our outlook is moderate.

we think corporate profits should start to pick up again similar to the way they did in 2016 and 2017. abigail: climbing out of the plateau. it sounds as though you would be a buyer of stocks. michael: we think stocks tend to be following the profits over time. if corporate profits started to improve, that could provide a tailwind or positive for equity markets. abigail: let's bring the jobs picture. people look at employment. they look at the monthly jobs numbers. we wanted to show a little bit of a different perspective. the blue line is the number of unemployed. the white line is the number of jobs companies are looking to fill. from much of the current expansion going back to 2010, the numbers were big -- were

reversed. positions not as many companies were looking to fill. in 2018, the lines switched. there 1.5 million more jobs companies are looking to fill then there are available workers. abigail: that is an optimistic picture. you never last time there was that sort of across? i would have to imagine this will be good for the s&p 500 unless it cut into margins. michael: that is important. there are a couple of questions. you have to look at hourly earnings. average hourly earnings have not gone up that much. outsourcing of technology is one reason. the otheret, but question is, unfortunately, the white line does not go back that far. it generally goes back to 2000. abigail: it is certainly a

bullish picture. this is another interesting chart. we're looking at high-yield spreads. talk to us about high-yield spreads being supertight. michael: we look at a number of financial indicators. this is the spread between high-yield bonds and interest rates. it happens when the spread is declining, that is a positive sign. it shows the financial health is solid. when the line starts to trend up, investors are worried about the outlook for corporate profits. in the last two sessions, this line has peaked. it is something to watch in 2020. for now, investors are fairly positive. abigail: taking on lots of rest. michael sheldon of rdm financials. thank you for joining us. joe: coming up tesla climbing above for 20 for the first time. ceo um usething

claimed for a long time. that story is next. this is bloomberg. ♪

>> i am really confident about hong kong. joe: now to asia ahead. tesla lining up more than one point $4 billion in financing from banks in china for its shanghai fighter. this as the electric carmaker inins to prepare deliveries the country. let's bring in shery ahn. how big is this? how big is the opportunity of tesla can gain some serious traction? market is huge. subsidies in the u.s. are running out. the next opportunity to be the chinese market, which already in 2018, they had her than half of the world's sales.

-- i'm talking about just how fast it all happened. we are talking about the financing lines coming from local banks. lots of red tape. they secured land. they got financing from local banks. it is huge. it was reported they got there powerline reported -- they got their power line connected in only six months. feels like he has an inside line. for musk, it is great news him personally because the stock price of tesla reached a high of 422.01. shery: he could not let that go. he tweeted about that today, saying the stock is so high lol in reference to the marijuana

joke. that led to a long protracted battle with the sec. cake justetting a looking -- a kick just looking at that. joe: he had to get -- shery: he had to get on twitter, which caused so much of a problem from the beginning. .e was meeting with jack ma he was talking to officials. he was seen eating steamed buns in beijing. shortly after that, tesla was exempted from the 10% sales tax that only local carmakers are exempted from. you can see the close connection to beijing and how this charm offensive has been successful. executives have tried to get in to china.

scarlet: mark zuckerberg tried tho learn mandarin. shery: he has to be cautious. we are still dealing with china. there are sensitive topics you do not want to deal with like hong kong. right now, investors watching this are saying he has good relationships in beijing. this is great for tesla. they are expecting a factory to produce 1000 cars a week by the end of the year. for now, he has good relations with china. scarlet: the chinese market is so critical for tesla. it is in his interest to remain on beijing's good side. this is an opportunity of a lifetime for him. shery: the second-biggest market outside of the united states. thank you so much.

for more on these types of stories, do not miss daybreak australia with shery ahn. coming up, u.s. markets close early tomorrow for christmas eve. 1:00 p.m. closing time for the u.s. stock market. joe: japanese prime minister abe and south korean president moon jae-in having a summit for trade talks. have a great evening. this is bloomberg. ♪

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taylor: i'm taylor riggs in san francisco. this is "bloomberg technology." coming up in the next hour -- stock record. has less shares touch $420, the gold price -- goal price elon musk outlined. how much higher can it go? plus, automated hacking. in 2020, online