what is so important about this is the gloom crew is going to say the fed is catching up with other central in raising rates. do you see that? peter: i think that is unfair. the federal reserve is ahead of other banks. assuming it goes in december, that will be the ninth hike of the cycle. the fed thinks rates are close to neutral and given the length cycle, haveeconomic to be concerned about how much further it has to run. the fed is right to be circumspect heard whether it goes -- circumspect. i think i agree, two rate hikes next year. francine: let's talk about the timing. peter: i would do march or june. overm: i would get things as quickly as possible but have a dovish communication. the last thing we want to say is we want to say is we're going to hang off. if data is good, that induces unnecessary volatile effect. francine: what is the one thing we should be watching out for? peter: in the u.s.? francine: yes. peter: the trade war and the wider effects on the economy. the u.s. has been able to shrug that off. it is in a better position than china. businesses are starting to think thi

is spending far more than it is taking in.we need to get used to this idea that the policy we have had for the last eight or nine years is unusual because we are coming out of the worst crises of the last 80 years, economically. it is quite normal for policy to be neutral, restrictive. that is something we need to think about as we think past the next two weeks and into 2019. nejra: which have about the risks of a fed being too hawkish. given where eurodollar futures are priced in equity markets are, is the risk that we actually get a fed that is to dovish today? andrew: i think the challenge for the fed is going to be that it could act a lot more devilishly at this meeting. it could dramatically lower the dots and change the statement. i think the market would see through that quite quickly. i think it would see at that point that they will just have to do more later. i think the market would start to worry that there is some of this pressure from the administration or from markets shifting the fed too much. has the fed lost

he is a man who is very convinced that he is on the right path and knows what is best for france.t may turn out to be true, but so far, the numbers have not shown up. francine: now, let's turn to italy. despite talk about a potential compromise, the nation's deputy premier has hit out against of the eu saying he wants to save the block from the verge of destruction. at a meeting in brussels yesterday, the euro area finance minister calls on a late to take the necessary steps to comply with eu rules. welcome to "surveillance." widen orread going to do both brussels and rome understand that they need to come together? paolo: i'm convinced that we reach an agreement. it has to happen before we start the procedure, which will put italy under examination. i'm sure the italian deficit would be much lower than the french deficit. france, which has always been criticizing italy is great to of 3% while italy will stay in 2%. francine: what is your overall view of the current government? paolo: they are not good for italian businesses, but the idea of the five stars movement to stop infrast

it is never final until it is final. there is still little bit of time.e is some time. what the prime minister has to do is come back with something that will reassure the northern ireland mps will not be treated differently and reassure the rest of us that our trade with europe is going to continue. francine: what if this is the only deal? mr. fallon: she thought it was the only deal and now she has changed her mind. she has listened to parliament and now she is going up to see whether it can be amended or improved. francine: let's speculate that this is the only deal, what happens? does she have a leadership challenge on her hands? do we see a second referendum? mr. fallon: changing the leader will not change the problem, which is that the deal will not pass parliament. unless it is improved, i do not think it has any chance of getting through parliament. francine: by delaying the vote, is theresa may weekend -- weakeneed? she is going around europe and seeing whether it is possible to try and demand this agreement. francine: what is unclear to me is th

there is no book that says what is conservative and what is it. the past couple years, that has been up in the air. figuring out, how do you push legislation and public policy before it breaks is a tricky thing. that is going to be one of the big challenges . >> it is a big challenge. we are at a place where relationships and trust are more important than any time. you can have the greatest policy in the world, but if it never reaches the ear of the audience, what it is it? what is the conduit we have to build to be able to make sure that the legislation lands in the right place? it has to be built on the conduit of trust and relationships . >> we are going to talk a little bit more about specifics on what is conservative and what isn't and how the republican study committee has tried to run the gap a little bit in american politics and done so quite well. in the meantime, tell me more specifically what are the biggest challenges you have faced over the last two years. that i want to go into your biggest accomplishments. >> just like you or anybod

it is a reminder of how nonexistent her majority is.ominic, who you may remember about your ago, he was the lead is back.r -- and is back. he has engineered an amendment which give parliament a huge say over what happens next if parliament votes down theresa may's break the deal as looks likely next week. hand, if the one margin reduces the likelihood of deal -- no deal, it increases the chances that may's vote to down and we see a softer brexit. the big question is, how will fair this time next week when she puts the steel to parliament -- this deal to parliament. we don't know. joe: what was the contempt mode specifically about? -- vote specifically about? >> the government sought legal advice before signing the brexit deal. that legal advice traditionally is private. some of it has leaked and the suspicion is that the legal advisor said this is a terrible deal. opponents of the deal, they want to see the full legal advice, to help them argue their case that this is a terrible deal. the week, a precursor of advice was released but we

that is why it is significant. there is still a long way from it.arre in the competitive field. on monday she returned to the house of commons with her historic deal. and for an hour there wasn't a single mp saying anything positive about it. you then had the government publishing its own economic predictions or forecasts, all saying the uk will be poorer with their own policy than any other. then you had her tour, even though there isn't a referendum. things are moving so fast but it is worth remembering just how utterly bizarre politics in the uk are at the moment. annalissa, donald tusk said this week, that it is the only deal in town and if this deal doesn't go through, he said we are probably looking at a no—deal brexit or may be no brexit at all. do people really think that will be the case if it is voted down? a lot of people in britain are convinced something will have to be found. the even timed this vote at westminster the day before the european summitjust in case she has to go to brussels to consult. it is a bizarre saga. the referendum

what is going to change? that is an important point.d an opec meeting in vienna three weeks ago and the decision was far more than people expected, they agreed to take 1.2 million euros out of the market, up to 1.7 when you take your in the saudi intentions which is a lot of oil. and it has no traction whatsoever. we have seen all prices -- oil prices slide. what they reflect his the -- 2018 was about oil supply, what will opec and shall do, market is all about demand. they are worried about trade wars, a slowdown in the economy, policy volatility from trump and fed independence. it is taking its cue from the equity market they are fighting a huge economic slowdown. if economic data supplies on the upside there may be a chance for [indiscernible] 40% off the october highs. thank you for joining us, will kennedy. which is a trade huge factor not only for oil but all markets, bloomberg has learned that the u.s. and china are set to reopen trade talks the first time, for the first time since presidents trump and xi agreed to a 90 day tarif

that is why it is so critical.gn domestic -- foreign investor demand on the back of the murder of jamal khashoggi. onhas had a cascading effect some of saudi arabia's ambitions. their expenditures will take up bit.tle the budget deficit will still come down to about 2.4% of gdp from 2.6%. you're asking me how does this all at up? where are the numbers coming from? it will be about oil. this is a government that generates 96% of its revenue from crude oil sales. you look at what crude is doing at the moment, the collapsing wti and brent. saudi arabia could be looking at $80 a barrel as a base case for next year. that means opec plus has a lot of work ahead to make that happen. rishaad: thank you, yousef. yvonne: bloomberg daybreak: europe he's coming up. this is bloomberg. ♪ -- bloomberg daybreak middle east coming up. this is bloomberg. ♪ emily: i am emily chang in san francisco. company up, while way scrutiny huaweie way -- scrutiny ramps up.

they are so confused what is really is, who is really a leader.t is not about fame or position or title. it is actually about but about people that solve problems. this is on carlyfiorina.com with jay bilsa, they need to start talking about people that solve problems and make things for the better and there are lloyds of people all around. connell: thank you, carly. thank you for coming on. >> thank you. connell: nasdaq down 2% plus i believe. the dow is down 4.55, down 1 and 3/4%. we'll see what happens with this market. that is a steep selloff in the last after hour or so. we're coming right back. ♪ connell: straight down we go, the dow jones industrial average lower by 479, 482 points right now, extending losses as pressurery yields have -- treasury yields further declined. yield on benchmark 10-year note, 2.92%. good to talk to deirdre bolton about stocks and bonds. she is at the new york fed where they have been talking about the economy in lower manhattan, is that right, deirdre? >> that's right, connell. we heard from new york fed president

if it is an epic meltdown where she is, it is a hot mess on this end of pennsylvania avenue. yeah, that message clearly got received, not just from ann coulter, but i am told that mark meadows spoke with the president last night, this morning, was a key factor pushing him to fight the short term fix. now you're seeing a series of votes expected to go down as kasie is talking about. the bottom line is the president doesn't have votes to get what he wants now. either he changes his stance or lawmakers change his stance. neither of those seem like likely options, at least at this point, unless there's another solution, which means we're headed for the shutdown. the bigger question i have, what's up with the president's trip to mar-a-lago over the holidays. >> does he know how politically damaging it will be to him if he essentially vetoes that spending bill and leaves? >> i think there's a sense, yes, that the optics of that would be very horrific if you will. no firm guidance on what the president's plans are. i expect we'll know more. there is a sense that the president would

what is your going about this is all stick. we are going to regulate this, pass this law, criminalize this, do this and that. this gentleman says it is complaint driven. that is nice. complaint driven. anybody go to the vehicle dwellers and say the neighbors have a concern about this behavior. if you don't correct it, we are going to have to regulate the street. scent that reasonable and -- isn't that reasonable? isn't that humanitarian? no, not this city. this city has a mayor that says we are going to throw you in jail, run you off, throw your things in the trash. you act like people have an option. this commission member i asked why is this taking so long? let's go back to the super bowl 15 days. pier 80 was open. within four days they had justin her man swept, the embarcadero swept the mission swept. they put them in pier 80. it is political will: i will leave you with this thought. there is say federal ruling out of idaho. you cannot evict homeless people unless you can provide a shelter space. they were talking about home

is foul, foul is fair.lways hold forever. but i think it is port to understand them. it is hard to make any head way without oil, and we went from supply supply supply to demand demand demand. >> we were addicted to oil in 2007, right? president bush told us, and now we're energy independent the treasury yield is not as flat as it was >> 273 on the tenure now >> when did with uninvent. we're back with my last day that we were here it was christmas eve. j are woe flipping that back and forth. >> because we can. >> a glitch in the system. >> maybe we never looked at it this long. >> we're coaching three big stores today the dow was coming off of it's first weekly gain in december. number two, positive comments from president trump over the weekend. on saturday trump tweeted that he held a productive phone call with xi jinping. more customers will be in range of amazon's two-hour delivery service if they can expand whole foods. >>> and deutsche bank shares are higher in premarket trading. he added there is no

it is okay. >> mark: so it is self-identity politics. >> it is fine. it is fine. why not?> mark: where is all the cultural appropriation come from? >> it has to be respectful. as long as you are not hurting others. as long as you are not disrespectful, which they are saying trump is being disrespectful by saying witch hunt. >> mark: you are saying there is 1.5 million witches who can't do anything witchy like put a spell on you. >> they do witchy things that are not old-fashioned defined witchy things. >> mark: being able to put a spell on you, that's old school? >> that is old school. >> mark: what is a witch then? >> instead of analyzing water, they are enjoying the water, drinking the water. it is about spirituality. it is a new movement. they are identifying with it. it is going away from christianity and embracing nature, perhaps being vegan as opposed to eating meat. >> mark: so being a witch. it is not like in harry potter? >> no, no, no. that's movies and tv shows. >> mark: but witches, macbeth, in the old days? >> no, no, no shakespeare here. >> mark: no black mag

this is bloomberg. ♪ is is bloomberg. ♪ this is daybreak asia. i am paul allen. saudi arabia have agreed to extend their deal to the oil -- manage the oil theet, opening a deal for opec meeting in vienna. we are joined by the president and chief economist at prestige economics. great to have you with us through we have seen a horrible november for wti prices, the worst in a decade. now we are seeing this slight uptick because of this deal. the chart showing exactly that. i wonder what will we need to see on this meeting in vienna for this spiked to be sustainable. >> there are a few things. on the one hand you have the trade concerns looming large, casting a big shadow over the oil price. i think it hints there could be durings in the armistice the u.s. and china, holding off 90 days before increasing tariffs. even this morning it has oil prices, copper prices up and on equities futures are up quite a bit. that is something good going into the opec meeting for the folks at the table. what you want for more oil isprise -- supply support members and nonmembers work

are these opinions, is this harassment, is it credible?se threats credible against these women? so, these companies have a very tough time coming to a consistent policy application. emily: is this going to impact advertising finally? sarah: it always has a little bit. advertisers when i talked to them say there is a brand safety issue on social media. you do not want your ads to show up next to one of these abusive comments. twitters algorithmic ordering in the last couple years has helped fix some of that. a lot of the worst of the worst doesn't get bubbled up to the top anymore the way it used to. but still a long way to go. and i think it helps that advertising is separate from the user posts on twitter, but with video and other categories, new categories of advertising that are more difficult. emily: we will keep our eye on the impact of this report. sarah frier, as always, thanks for stopping by. coming up, the future of money. we take a look at different aspects of how technology is disrupting the financial sector. this week, a u.k.

is it really just politics and because it is campaigning? is that what it is?> i am not going to give you any b.s. the reason they are doing this is because ofot optics. each side -- you are smart. you know. each side has got to find a way to save face with their base. right now, by pitching this as a fence, that allows my party a chance to save face and say we can't give you a four to five concrete wall but we can give you a funding for a fence -- now dick durbin made a great point on the networks on sunday by saying that only one out of every five vehicles coming across the border are being screened right now. so what he would like to see is more funding for that in addition to funding for the fence.ee i think that we have got some inroads here. i think we honestly do believe there is a way ahead, it's just got to be a way that we both can pitch to our bases. >> tammy: that becomes, dan, the question. how far does the president go? does he never sign a bill until he gets -- look, he is compromising. they are already talking about $2.5 billion. the president i

it is what it is morgan stanley is an 18, 19 month low. citibank trading significantly below their tangible book. even jpmorgan is 16% off their highs. so my question is, what is -- there is something wrong with the banks. what do you think it is? >> if you remember we were trying going into a cycle change, even a contraction, financials will underperform almost no instance in history where financials are outperforming in a period of economic weakness. so in fact the financials likely do have more town sidown side w goldman might have priced it all in >> and where does volume come into your analysis >> it is the number one thing. it is more important than price. the level of activity, whether in real estate or in any endeavor, the more phrenetic, the more symptomatic of -- it occurs at market bottoms and tops this is clearly a market top we made a good ten yearumecarte. >>> inside the election, i think there is a number of important fundamental differences to why banks should be trading above that election level. they include the fact that

if it is not coming home, maybe it is mexico, or maybe it is vietnam, or it is coming back to japan or or taiwan, or some other places. jason: one of the most interesting elements of this story this week was the recent arrest of the cfo of huawei, and the administration's initial thought, or initial statement, repeatedly, that this was separate from that trade negotiations. then, here comes the president midweek saying that, in fact, he might take actions related to that case if it were to help the trade negotiation. help us sort through that. shawn: there are two things at play here. the first is we need to think about the trade war not just as a kind of war about soybeans, which is often the way it is framed, or about steel or cars. it is really about an innovation war that is going on between the u.s. and china. but huawei is one of the key chinese pieces there, particularly in an area of 5g and mobile networks, where the chinese are trying to set new standards for those, and huawei is their leading company. there is also, there have been for years, and this goes back to the obama a

so diverse,room is you don't even really notice if it is a man or woman. someone is speaking. i think that is the magical thing that happens. research shows that three and above, you cease being the woman or the women in the room, and you are simply the leader in the room, so i feel like i have experienced things over my career, but that is one of the things that really stands out to me on sort of the onlys topic. >> we are getting really close to q&a. i think there is going to be a microphone in the back of the room if anybody is dying for questions and want to start lining up. i had three awesome questions. >> we just want to be off the hook. >> can we go to obvious questions? >> oh my god, have you seen my interviews on youtube? i have been so nice to you guys. [laughter] >> you have been. >> this is nice for me. this is the one of the three i am taking. we are in silicon valley, right? this is the venture capital center of the world. onlyis an industry where female founders, female ceo's, get 2.2% of the money. you know, you talked about earlier tonight, and you wrote abou

is steady.ith opec in the example, you have 28 billion barrel build year on year. 20 million of that has come from iran. it comes down to the distilling down to country level and tank level, to be able to look at where are the draws and where are the builds. that is the interesting thing we have seen in the past few months. going back to the fall around september, we were looking at an incremental continued build. there is a big delta that is developing here from a latency effect. you can either trade off of that well or have an exposure. we have seen that pattern, these divergent builds versus draws and to be able to help people distill that down. alix: does a 1.2 million barrel a day cut next year do it? andy: that is the important question. that is one element of the supply-demand story. you had opec cut by 1.2 million barrels per day. you have other things going on as well. on the negative side, there are headwinds regarding demand. worries with threat of trade wars, how robust is emerging-m

it is expected to play a larger part in government strategy as the bank's role is reduced. >> it is onecriticisms china gets. it is offering these loans. they are originated by the african countries, they are the ones asking for it. they may have a dream in terms of the nature of the relationship, but i do not think they are trying to shape the future of africa. rishaad: that is not to say aid and lending will not be influenced by commercial interests. interests which some say still have access to resources at their heart. chinese companies see an abundance of opportunities in the continent's rebounding economy, and a green light to raise their presence there under the belt and road initiative. while china sees huge investment opportunities, what about your average portfolio manager or retail investor? can they also come along for the ride? >> if you want to invest directly in the belt and road initiatives, you cannot do it directly. but basically, what you are investing somewhere, perhaps there is a hub for international companies. so as the environment gets easier, say, for example, t

and this is really have to improve. what it leads to is, a bigger fema is not the answer. we can provide a tremendous capability when it comes to food, water, ice, mres, generator power and whatever else. the question is, what is the state's capacity to do it? do they have their own logistics capability set up? even down to the local level. what are the contracts in place to provide their own citizens emergency power, food and water? particularly for low to know notice events like major earthquakes. it takes time for declarations to go into place or for our resources to mobilize. we are not a first responder or 911. if that is the case and that is the reality, like in the recent alaska earthquake, each level of government needs to have their own baseline capability to strengthen the whole system. mr. nixon: could you talk about how fema can help? fema is the dhs's largest granting body. what is your role in that in helping the local and state emergency managers fill their capacity so it takes some of the burden off of you? mr. long: i am a big believer in use of the privat

sometimes it is because the timing is wrong. sometimes the execution is wrong. you decentralize google and facebook, it is really, really, significant for us to pay attention because it would not have been the world we live in it if not for the dot come boom and bust. the companies are foundational to what we are today. which brings us to an interesting aspect we look at carefully. that is i think in the conversation that you have going forward, it is going to be relevant which is the environment. ... how they treat the block chain and fundraising for it. there are leading positions on how we address the clauses and one of the byproducts of that, in the u.s. we don't have a coherent approach. it has been stepped in and stayed these things are not okay and we will come down hard. we do not have rules to say this is how we treat the block chain or the service providers. we are seeing access to money -- so somewhere, around the way we will have to find the right balance between making sure we have sensible regulations and that we don't lose what made the ecosystem

and the sdny saying this is a bad dude. he is a criminal, he is a liar. he thinks he is above the law and he should get four years. what does the judge do? >> the judge has two alternatives. on the one hand, this is a train that is driven by the prosecution. it is the mueller that it is the big question. if it was just the sdny part, then cohen would get time and how much. the fallacy of all that we are talking about, is even if cohen were sentenced tomorrow to four years or three years or whatever variation that is, he will continue to cooperate with the government. the government can file after the fact a reduction in the sentence. this didn't happen in the orderly fashion, the rule 35 will continue to hang over him. >> do you think the judge will give him years? >> you know, i have been speculating all day. i think the judge will give him years in the face of the sdny recommendation, i don't think the judge will give him four years. he is before a very tough judge. he is not someone who has been lenient on white collar offenses. and if you look at the

is this ok, is this legal?ot of other issues is you have state and federal laws, a lot of other laws to follow. the overarching theme is that if you were to start a business, if you wanted to, it is not that hard but you have to make sure you know who your customers are. if you put up a machine, you can not just take money without knowing -- >> do you have to have a license or information? matt: reasonable policies and procedures to know who this person is. if you walked into a bank with $50,000 cash, they are going to ask you some questions about who you are, where did you get the money, that kind of thing. btm going to ask? matt: that's the question. if you go over $10,000, even if you do it in five different transactions and it goes over that amount, that has to be reported to the treasury. so there are things that you have to make sure that no one is on yourng money machines. that is really on the owner and the person starting the business, they call it kyc policies and procedures. >> know your customer. ma

so that is why demand is there. stability in the current position, i think credit growth next year will be maintained. the growth next year could be .etween 5.1 and 5.4% sophie: we have seen investor confidence returned to indonesian assets. pressure on the currency and bonds has been easing, as the mistreated this chart on the terminal. but does the currency remain undervalued in your view? at it, it looking seems like investors have been changing their view on indonesia through the emerging markets. first, growth is maintained at 5% plus, inflation has been very modest, close to 3%, the lowest ever in indonesian history. the preemptive policy from the the veryank, and also preservative fiscal alessi from the ministry of finance has helped to maintain stability -- fiscal policy from the ministry of finance, has helped to maintain stability. we are also slightly helped by the decreasing oil prices. yvonne: that was the president, uirector and ceo of bank mandir sitting with sophie kamaruddin in hong kong. lifted or

as long as that is the case, buying rates is a good strategy.ya: i think the market has repriced hike significantly. jonathan: massively. priya: we were pricing in 3%, that is when we went long treasuries. i think we are well priced for growth remaining above potential. i think the question is, does it go below 2%? if potential growth is 1.75%, are we looking at 1% gdp in the fourth quarter of 2020? then the fed has to stop before neutral. but we are pricing in essentially neutral. witches, i think come out what the fed was trying to message. jonathan: the conversation we are having is whether we will trend towards something more sinister, or below trend growth? jim: we think we are below trend growth. a lot is weighing on the economy. one of the biggest things is uncertainty of what trump policy will mean, what trade will mean. the resolution of that. we know growth is slowing. it is about the velocity of the pace of growth and what that means from the fed standpoint, and how aligned the fed will be in their decisions in relation to how growth

the truth is, love is not at. sentim it is a commitment.on and a commitment to seek the good an the well with fair and the well-being of others, sometimesa evve my own unenlightened self-interest, from the philosophers, and the truth is, that you can't bu society, there is no social conract, there is no functioning democratic society, there is noe freedom, tr freedom when everybody is functioning solely only on their unenlightened aclf-interest, if it is all about me we aretually tearing ourselves apart, somehow we have to look for common good, for the good of others, if the samaritan road, the pair balance of thes goodaritan in the new testament about the one who with is willing to risk to save another person's risk to save another person's life, selfishness is the most destructive force in all of creation, selflessness is the most creative power that actually exists, because that is the nature of god. >> and how are we doing as a country right now when it cops to selfishness? >> well, we are struggling but it is a mix, it is a mix. but we

is it a spike fence? is it a cyclone fence? what is it, where is it? leland: congressman -- >> wait a minute, i'm on the armed services committee, transportation committee. we would not allow the department transportation or any part of the armed services to spend a nickel without a specific plan, where, when and how and for what purpose it will be spent. the president comes up with a plan, he needs $5 billion for a specific purposes. we will be happy, at least i would be happy to appropriate that money. leland: that is an interesting point. >> yes! leland: when you have you on record that the issue here is not the wall. it is that you want a specific plan of what the wall looks like and where is going to be. we know congress spends lots of money on lots of different things. >> exactly. >> they maintain vacant public properties. how specific does the plan need to be? >> i would recommend what is similar to what we require for the army corps of engineers. build a levy someplace. or put in a lock on the river. they have to come with a specific plan as to

is happening and that is a problem. the good news is, i think people are starting to wake up to it and the leadership of the organizations and individuals represented here among our witnesses is a major reason -- major reason for that. we will continue to focus on and i fully intend to be the chairman for this committee again. we'll see if that happens, i hope it does. i will continue to focus on these issues and we certainly want the expertise represented here to remain engaged. as you said, mister goodwin, you are taking action, we need to start taking action and we are going to get there and we will keep pressing. i want to mention, with regard to the hearing, the record will remain open for the next two weeks and during this time senators may submit additional questions to all of the witnesses. for the record, i am upon receipt of these questions and we respectfully ask the witnesses to give their written answers to the committees as soon as possible. i would like to thank the witnesses were appearing today, specifi

it is 4:30. steve is off and rosemary is here. >> it is dry and cool which is nice. it is also visory later this morning at 9:00 for the bayside community as well as the east bay valley locations until 9:00 tonight for the hills and longer than that with when gusting over 45 miles per hour in the day. it is blustery into the evening. the wind advisory for the hills started around midnight and will go until tuesday morning and gusting up to 60 miles per hour. it is breezy on thday of 2018. nd is 31 miles per hou oakland sustained at 8. with the northwest wind coming out of the direction, areas crossing and the san mateo bridge cup there could be issues and those s. as far as visibility, not too bad. livermore reporting 4 miles of visibility. went over the north bay, over here in the area where we have the wind blowing through the hills this morning, 44 in napa and fairfield at 49 and 15 degrees warmer than yesterday. livermore at 38 and around the bay

so what is the good news? is there good news? one thing i noticed and i am sure you all did, too, was a few days ago there were signs of life in the united states congress. after everyone just nodded, after a long time just observing the situation, last thursday the senate passed a resolution by a 56-41, a bipartisan vote, prohibiting the u.s. military assistance to yemen. the senate also voted unanimously to condemn the crown prince of saudi arabia for the murder of jamal khashoggi. that one is personal to us here because khashoggi had been invited to come here as one of our scholars. as we know, saudi arabia and been alarly mbs, has driver between the conflict between saudi arabia and the houthis. the action by congress was time-limited, but attention is now being paid to the issue. i amformer member there, pleased to see the article one branch of government pledged to defend the united states and project our interests around the world is paying attention. today's panel could not be more timely. what are the prospects for peace

there is not one that is gaining. tech is falling this morning.have consumer discretionary stocks down big as well. the only groups that are close to the communication services. let's take a look at some of the individual movers as well. 600, and onlytoxx 35 stocks trading up, 492 trading down. that should give you some idea of what is going on with this market. go, thes the movers most points are being taken away from the stoxx 600 -- adding the most points. kingfisher also. balfour beatty is adding some points to the stoxx 600 as well. seear as the losers, you louis vuitton taking some points away. you have a look at what is moving the markets this morning. european equities opening lower and tracking losses for the asian markets. >> that data out of china, really disappointing. we are seeing the press of the losses across european markets. moving theto be focus to the downside. it is great to see you. what does the data tell us? industrial production is pretty weak. >> retail slams -- the sales were after's lowest pace of expansion since 2003.

so when you speak, if there is an item of interest that is not on the agenda and it is under the subject matter jurisdiction of the commission, you may speak under general public comment, and that is item four, and then continued on item eight. please put them down. please address your comments to the commission during public comment on items. in order to allow equal time for all, neither the commissioner his staff will respond to any questions during public comment. the commission may ask staff to respond once public comment is closed. very last, if the fire alarms activate, you must evacuate the building in an orderly fashion using any exit. please note that the elevators will immediately return to the first floor and are not available for use. if you need assistance out of the building, please make your way to the closest area of refuge, which is directly across the hall in the men's restroom. inside there is a speaker box. press it and city hall security will answer. let them know your location and they will assist you. we have one other announcement. that will be a change in order o

that is what i enjoy. >> reporter: but that is hardly all of this hometown boy turn tech titan is. philanthropy is a large part of what makes him and his company tick. over thor years sales force has donated tens of millions of dollars to charities and to its founder, the ucsf children's hospital at mission bay. and then thesure that in november. it will be a tax to raise money to fight homelessness in san francisco. why would he support a tax on his own company? >> well, i love the company, and the city and people, and i love to innovate and creating and making something new happen. that where i get a lot of my joy. >> reporter: joy, marc also gets from running a company consistently ranked as one of the best places to work. with employee cafes and meditation rooms on every floor makes you realize why. how does that make you feel? >> it makes me feel good, because that is what i want a great place to work and not only making money, and not only are we building great products and having great customer success, but to give back to scale. >> reporter: this en are the tre preneur got

it is a little bit disappointing that the footage is as small as it is. not needing what is needed. and so with all the redevelopment that is coming forward in that we are doing, if we don't try as was suggested to seek a wider way of searching to meet the needs of a full grocery store, what is going to happen to all of the other areas that are being redeveloped? i believe you have done your work. is there something that you missed? and that is my question. that is my question. is there something that you missed? is there someone out there that knows exactly what could happen to satisfy the needs? that's my comment. >> i have a couple of questions to traders joes. i will put them in two parts. the store is about 28,000 square feet. which falls into the category to talk about the size of most traditional. we are looking at three categories for groceries. the traditional format. all of which have a minimum square footage of about 25-30,000 on the minimum basis. to the maximum of about 70,000 square feet. in san francisco, specifically, the trader joes is close to 28,000. the whole foo

this is bloomberg. ♪ this is bloomberg. ♪ this is daybreak asia. i am shery ahn in new york.l: i am paul allen in sydney. the year ahead conference is underway in tokyo, bringing global ceo's. security will be a top discussion in the coming year. what is the mood by? upbeat evenis though it started to rain this morning. theill have an all day session. lawrence, thank you for joining us. >> thank you for having me. stephen: you said japan is a core interest and priority for melco. we know there will be three licenses issued. where are we in the process now as you are shaping up will be -- what will be a bid for one of those? important.l be very i think the national government plans on establishing the gaming control board in july, then i think after that, all of the cities in the prefectures will line up with operators and consortiums. 2019 will be a year where operators like us will be trying .o join consortiums by the end of 2019 there is a possibility the bidding will have started. stephen: what kind of partnerships do you need to fill out your bid? >> partnerships is every

it is unprecedented. there is no playbook. the law tells you what you need to do so we did that and then moved forward. our mentality now is that it is behind us. for the focus now company is 5g -- 5g ramp and how we resolve the apple issue. emily: the president saw a national security threat. do you think that threat is real? 5gqualcomm is a leader in and i think they wind to make sure that is maintained. but quite frankly, i am not sure anyone really understands everything that happened. emily: qualcomm tried to buy next and you waited -- tried to , and the chinese government said to let the deadline lapse. the deal was dead. how big of a blow was it? >> we have moved beyond it. i was very clear in terms of what we were going to do and it played out not the way we wanted originally, but i think we moved beyond it and did the right thing is a company. , ate is no dramatic change least anyone's evaluation of the mna in china. we decided to do was remove uncertainty for our shareholders and both companies and fun. it has -- and

of course there is. there is a concerted effort. who is doing that? there is no disagreement. doing that, these external forces ? opinion, who is doing that, these external forces? led opinion, who is doing that, these externalforces? led by opinion, who is doing that, these external forces? led by india, opinion, who is doing that, these externalforces? led by india, of course. so, is there a terrorist intervention in baluchistan? yes. what the people of baluchistan thought, there has been expressed through the free will of the people by electing the government of baluchistan which stands by cpec who wa nt baluchistan which stands by cpec who want greater cpec presence in the province. let's talk about the big picture in pakistan. imran khan came to power, you became finance minister promising a new era of fairness in your country, where every individual pakistani would get afairshake. every individual pakistani would get a fair shake. the situation today is that 45% of children under the age of five show signs of undernourishment and stunted growth. you have some of the wors

when you say a promising way, what is the promise thatis a promising way, what is the promise that isat broadview?” a promising way, what is the promise that is held at broadview? i have always thought brexit could not be delivered because it was a stupid question with a muddy we have spent two years not deciding what we mean by it. clearly that is politically undeliverable. it will need to go back to some other resolution which looks more likely to be another referendum, then we can possibly get back to governing the country as opposed to worrying about chasing unicorns. agnes, we heard on saturday morning from amber rudd saying she thought there was a plan b, the norway plus option. all of these variations, we don't need to get hung up on the details, but all of these variations are effectively require a compromise of one kind or another. do you detect any willingness to compromise, is there a realisation among politicians that compromise is inevitable? the britain i know today is not the britain i know today is not the britain we have known for decades. it is behaving in a very un—

is it more credible? i think it is.lks have never been as progressed as they are right now, giving a cautious optimism. you talk to fa ns giving a cautious optimism. you talk to fans and they have been here before with last year we had amanda staveley, a city financier, but the deal fell staveley, a city financier, but the dealfell through in staveley, a city financier, but the deal fell through in the end. staveley, a city financier, but the dealfell through in the end. ashley has talked in the past about selling the club during his 11 years which has included two relegations from the premier league. we are in a holding pattern. i understand peter kenyon is in pole position amongst a number of potential bidders. he has american financing. rockefeller capital management, a new york—based firm of financial advisers behind him. we will see whether a deal comes to fruition but my understanding is peter kenyon is in pole position, the former chelsea and manchester united director, perhaps looking to take over from mike ashl

it is less than 1% additional shadow. this is .34. there is no reason for you guys to deny the additional housing that would be added to this location. further, on behalf of the parks department, they would want to have additional families who would use the park more often. having the building across there -- ther there -- >> next speakers, please. >> i just want to say a couple of things just from experience. i have been in the neighbourhood since 1989. one of the things i liked about how this was, -- you don't see too much sunlight. there are not many parks. number two, the sun, it is important for the kids. when i first started to work in the area, in the neighbourhood, they played basketball. they were in vacant lots. the vacant lots are no longer there. they are housing. we do need housing. there are other places to put the housing. put the housing in treasure island. you know. we have to preserve and protect the shadowing. i urge you guys to keep that in mind. it is one of the few places that has sun in the city. >> thank you. >

goldman is an outlier. the $5 billion is a lot.r billion, $17 billion we saw , but the financial crisis it is still a big number. it is something citigroup's drag ony could cause a the stock itself for the next 18 months. with that is people are paid income. -- in stocks. it is going to be an issue. jason: thank you so much for all of your reporting. watching to into new york and back again. have a happy new year. our finance reporter, taking a quick look at the markets. we are off our session highs. still trading a bit higher. you see the dow up in excess of 2%. the s&p up 2.3%. the nasdaq leading the way up more than 3%. much more ahead. this is bloomberg. ♪ welcome back. this is "balance of power." i'm kevin cirilli at the white house. in newi'm jason kelly york. disney waiting for regulatory approval for its 21st i -- twitterverse percent fox ask with -- acquisition. takeompany said it could as many as 12 months to close. david westin spoke to disney ceo bob iger about the -- about that back in november. they discussed their fo

or is it ai? yuri: it is ai.y cutting across pretty much horizontally across all technologies. different company will become an ai company. brad: that was yuri milner. san francisco passed the so-called homeless tax. people decided to boost funding for homeless services from companies with gross receipts more than $50 million. emily chang sat down with benioff just before the vote. >> we have a serious homeless crisis in san francisco and it is getting much worse. we have 70,000 homeless individuals on the streets, 12,000 homeless families each with two kids. how are we going to get them off the streets? it is a problem, we know it, and that's why i'm voting for prop c. emily: how about the unfairness other companies are talking about. jack dorsey saying, there is an role asss i find in my ceo as opposed to twitter. they would be taxed more than salesforce. marc: what i see is a crisis of inequality in san francisco. we have 70 billionaires here in our city. we have companies that you report on with hundreds of b

open is a sweetener, or is it a poison pill?ou could see it going either way. you could see it being a sweetener, more members wanting to vote are to the bill or see it being a poison pill and actually brings the bill down. here is one thing we do know, if they tack this on in the house of representatives, the senate probably can't accommodate it. the senate wouldn't pass that and they are out of alignment. yes. mitch mcconnell did not adjourn the senate. connell: they could vote. yes just don't have the votes. >> if house passes something different than what the senate passed last night, they are out of alignment. house and senate not on the same page, the president threatening to veto a bill that does not include wall funding. connell: that is the not only reason we're down almost 600 points on the dow, about you it adds as we were talking earlier to the uncertainty out there. the president has been hearing it, talked about this with jason chaffetz in a moment from his base about these issues. what is the choice for the presid

people feel like it is out of control, because it is. >> it is getting better.had 3,000 border apprehensions last year. the number of immigrants coming across the southern border is way, way down. >> tucker: hundreds of thousands. that's much bigger than the city i grew up in. that is a lot of people. why not just wall it off and have a rational conversation? >> let's go back to the adult conversation, if we can paired i agree there should be physical barriers where it makes sense. i don't think the parties are engaged in that conversation right now. .2, the problems are not border crossings. the real problems are visa over stays, as we just talked about, and the second is employers. undocumented immigrants stay here is because of employers. if republicans, and i think democrats should be here, as well, if they are so serious about this problem, why is it that they do things that will upset the business community? be when you are preaching to the choir completely. the activist left aligned with rapacious employers looking to exploit labor is a little bit stunnin