julia: risky.at the time everyone watched it, if you are a big of wwe fan, you would turn on cable and watch these weekly shows, and a couple times a year you would subscribe to a pay-per-view event like wrestlemania and pay your cable provider $40 or $50 to watch the big matches. wwe said, we will take those big matches and make those available on this video streaming app. you pay a monthly fee, and we will give you the big events, and give you interview shows, documentaries, additional archival wrestling matches. and they put this together at a time when all those video streaming apps were like netflix , they were aggregators. they were not individual brands. there was a lot of skepticism. people thought, is that a good idea? not surprisingly, it irritated their partners in cable tv, who got a cut every time you signed up for wrestlemania. they were not too thrilled. carol: this was a risky move but it paid off. >> it did. they have 1.5 million monthly subscribers. carol: is that good? give us a

julia: why? long. she said this reputation of being the leader of the free world. which she kind of hates, but it is a moniker that has stuck. she had so much more to lose because she is the chancellor effectively. she would've been falling from a higher place. the social democrats had nothing to lose. they have been junior partners in this coalition for the last four years and they got nothing out of it. they were always sort of perceived as the secondary elements. they could have walked away. there was a lot of pressure within their party to go into opposition and not be in a coalition government with her again. julia: they didn't nothing out of becoming a coalition with angela merkel. they got pummeled in the last election. a shocking showing. and angela merkel struggled as a result of the rise of the afd party. was she afraid to go to fresh elections in case they increased their support further? david: yeah, neither side could afford to go into new elections because of the rise of the right w

julia: and i'm julia chatterley.an find us online at businessweek.com and on our mobile app. carol: in the politics section, u.s. forces killed hundreds of russian mercenaries in syria. julia: and the incident is raising the possibility of greater conflict between washington and moscow. carol: here's editor matthew philips. matthew: it has been a very active start to the month of february, for sure. we have seen an escalation in tensions. we have seen some actual, real shooting going on. we have seen aircraft being downed from iran, from turkey, from russia, from israel. they have all seen aircraft shot down over the first part of february. the most interesting event, the most seismic event, happened on the night of february 7 when it seems that a battalion of -- what by all accounts seems to be some russian mercenaries, numbering in the realm of 200 to 300 -- were killed by a u.s.-backed force led by u.s. forces and backed by the kurds in a failed attempt to take some oil fields the kurds have been holding for the p

carol: the financials julia: julia: here are incredible.e would say multiple times, the generation capacity of casinos and macau, way bigger than anything vegas has ever seen. >> if you look at the comparative numbers here, they do it for table. that's the important metric. this is a place that's turning over by some measures six times more than casinos in macau per table. this temporary casino, the size of an olive garden, was doing something like 1/3 of the volume of the biggest casino in the world. it raised some eyebrows in the industry. julia: could this be done legitimately, if you're talking about chinese billionaires coming to this remote location? what have people said to you about the possibility that this could be legitimate? matt: i spoke to a number of giving experts and executives. all of them with a lot of experience in asia. they were all deeply, deeply skeptical to say the least of any legitimate explanation for funds like this. carol: what is a legitimate explanation of what's going on? matt: they are complying with all la

julia: and i'm julia chatterley. on the radio in new york, boston, washington, d.c., and in the bay area. carol: and in london and asia on the bloomberg radio plus app. in the business section, taylor swift is changing the way tickets are sold and scalpers are not happy. reporter: for her upcoming tour "reputation," same title as her album, taylor swift and ticketmaster have come up with a plan to try to ensure that they keep all of the money pretty much from the ticket sales. the last time taylor swift went on to work for 1989, she thinks she lost maybe $85 million to scalpers based on rough estimates of how much tickets usually go to scalpers and how much average ticket prices was. this time, if you are a big fan, you sign up for a program, which is part of an initiative taylor swift has. you bought an album and watched newsletters and for each one of those interactions, you have a boost that lets you take part in a presale, we can get tickets for a little bit less than you might normally. you have to prove you are

julia: i'm julia chatterley. we are here inside the magazine headquarters in new york. week's issue, can jeff bezos, warren buffett, and jamie dimon create a new model for the health care system. julia: investors bet big. carol: marvel's "black panther" at the box office. julia: all that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor in chief of "bloomberg businessweek," joel webber. let's start in the business section. a story that is fascinating came out a couple of weeks ago. it is about a trifecta of individuals, well known individuals, warren buffett, jeff bezos, and jamie dimon talking about fixing the health care system. >> right. the biggest guys around. the details around this still remained kind of hazy. what will actually be the solution in health care? how are they going to try to fix this? they're trying to find a ceo who can spearhead this initiative in the three companies. amazon.com, berkshire hathaway, and jpmorgan. what has been interesting, and where we try to pick up t

julia: this is bloomberg businessweek. ♪ ♪ julia: welcome back to "bloomberg businessweek," i'm juliay. carol: i'm carol massar. you can also listen to us on radio on sirius xm channel 119, york, 90 3 a.m. in new 91 fm in washington, d.c., and a.m. 960 in the bay area. julia: and in london and in asia through the bloomberg at. investors are finding reasons to worry about certain exchange traded products, or btp's. carol: in over 400 of these etp's use derivatives to generate outside returns. julia: that is raising red flags for market watches. >> last week, we had the blowout the, the exchange rated note. what that put into focus was what some exchange rates have complexity at their hearts, not always as risky as expecting -- a vix betting etn, but some have derivatives at their heart. there's lots of technical terms in there. julia: explain exactly what investors were doing when they were getting involved with these products. >> first, let's talk about volatility. volatility is the way we can measure how active the markets are in terms of price wavering. when markets are calm, volati

julia: i'm julia chatterley. you can find us.: the fbi fight versus the race -- over the release of a memo that the german of the -- house head of the oversight committee. it is a complicated story and we got more from editor matthew philips. is a memo put together by republican staffers on the house intelligence that worked for devin nunes, a republican from california and a longtime trump supporter. it contains classified waysmation that looks at in which the fbi sock approval for a surveillance warrant of a trump associate, carter page, a well-known figure in this back-and-forth of the russian investigation. the white house thinks that by releasing this memo, it will provide evidence that the fbi acted politically, improperly, in getting the wires tapped of a trump associate. our story starts aboard air force one on the way to davos and the president gets furious when staffers tell him about the latest wrinkle in the pressure investigation, which is that stephen boyd, a name we have not the associate attorney general, comes ou

julia: i am julia chatterley.an find us online at businessweek.com and on our mobile app. carol: in the economic section, a credit squeeze is on in china , just like in other parts of the global economy. julia: but in china specifically, the corporate titans are feeling the pinch. carroll: here is editor christina lindblad. >> in china, authorities have been particularly worried about debt in the corporate sector. rather than use benchmark sorather than use benchmark interest rates, rather than having the people's republic of china raise interest rates they , are using targets to measure the problem so as to not compromise growth. so i think the alarm bells started sounding in 2016 when chinese companies went on a huge m&a binge that bolted them to number two in the global leagues of m&a behind the u.s. , that was a wake-up to chinese policymakers. a lot of these deals were happening abroad and a lot of them were debt-funded. carol: talk to us about the levels of debt. we have had short-sellers come on and talk ab

julia: i'm julia chatterley.ind us on the radio on sirius xm channel 119 and a.m. 1130 in new york. carol: and in london. and in asia on the bloomberg radio plus app. in the features section, world wrestling entertainment, or wwe, is on a roll. julia: shares are trading at an all-time high. they are making more profits than at any other time in their history and they are taking some big risks. carol: our reporter took a trip to the company to hear about its plans about world domination. >> right now, a lot of entertainment companies are struggling. wwe is doing really well. we looked into why that was. a lot of it has to do with a decision the company made in 2014. at the time, they were looking into what they want to do in the future with digital products, and they noticed their fans were subscribing to netflix and hulu. they thought, we should try launching our own video streaming app product. julia: risky. bold call. >> yes, at the time everyone watched it, if you are a big wwe fan, you would turn on cable and

julia: and i'm julia chatterley.the radio on sirius xm channel 119, and also in new york, 106.1 in boston, washington, d.c., and a.m. 960 in the bay area. carol: and in london, and in asia on the bloomberg radio plus app. in the feature section, world wrestling entertainment, or wwe, it is on a roll. julia: shares are trading at near an all-time high. they are making more profits than at any other time in their history, and they are taking some pretty big risks. carol: they have indeed. our reporter felix took a trip to the company to hear about its plans about world domination. felix: right now a lot of entertainment companies are struggling. wwe is doing really well. and that was interesting to us. we looked into why that was. a lot of it has to do with a decision the company made in 2014, which was, at the time they were looking into what they want to do in the future with digital products, and they noticed a lot of their fans were subscribing to netflix and hulu. they thought, hmm, maybe we should try launching o

julia: i'm julia chatterley. we are inside the magazine's headquarters in new york. carol: in this week's issue, in the year of the dog, beijing continues to feel the bites of deleveraging. julia: a hub for moving chinese cash. carol: steve bannon has another warning for the white house. julia: all that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor-in-chief of "bloomberg businessweek" joel weber. let's start with remarks in asia, that bears close watching. "business week" has been writing about the debt pile up in china. china has been doing something to get rid of that. joel: this is called the year the dog. what we will be talking about is deleveraging. the debt pile up in china is enormous. there's been a number of people. -- the further away you get from more bearish you get on china, apparently, but for years, people have been calling for something is going to give. it will be bad for the global economy. all eyes on this in general. where our story picks up on that is talking about, the number is $30 trillion. that's how much we are tal

julia: it does.n talking all during the show about the pressure we've seen in the rates market, particularly to the steepening of the curve contributing back to the pressure we have seen. scarlet: the 10 year yield getting to its highest. two-year yield move up and now we see thw 10-year yields get a higher. -- the 10-year yield get higher. julia: what'd you miss? snapshot of the american economy this morning adding 200,000 jobs in january. report from on that matt. always good to have you. you tell us things we did not spot in the numbers. what is contributing to the wage growth we saw this quarter? >> that was the big story today. the fastest pace we have seen from the entire expansion so far. 2.9% fromicked up to 2.7%. it is interesting to see the sectors driving that. the chart i brought you guys -- the blue line is the overall wage growth number we saw.the white line shows one of the big contributors to that , the health care industry. interesting. if you recall one week ago we got the gdp repor

julia: live in new york, i'm julia chesley. i'm scarlet fu. joe: i'm joe weisenthal. julia: stocks going from positive to negative today. major averages currently in the green. joe: what jim is? scarlet: rocky stocks at the end of a rocky week. higher interest rate volatility could be partly to blame. -- where are the deficit hawks? the flag that stole the spotlight at the opening ceremony at the winter olympics. athletes marched under a flag of unity. the efforteans for to give up nuclear weapons in north korea. >> we are looking at the final 30 minutes of trading. it could get interesting because we have typically seen an acceleration to the downside if you judge by the recent history. right now we are up by three quarters of 1%. we have been little changed. >> we have. it has been difficult to keep track. so many have been talking about they got up to get a coffee and then everything has changed. that is characteristic of trading this week. 1.9%, risingalling as much and a half percent. as we say, it could change at any moment. now it is lower but it was higher dur

julia: i'm julia chatterley.e back with catherine keating, ceo of commonfund let's focus on endowment returns. 2017 had average gains of over 12%, but he comes after a challenging decade with just 4.6 percent annually. this has been a real challenge, a daunting prospect for a decade. enterprises,ig asreased spending rates, and you have already said, even with returns in the last year, increasingly tough to achieve in the year to come. how do you meet that challenge? catherine: artist had a great year -- and it has been a good five-year period for the average endowment. it has been a tough decade, 5% returnsess than thanks to the financial crisis. one of the things about our clients as they know where they are going. they have to earn enough to spend which is usually between 4% and 5% a year. on a cycleeturns basis north of 7%. long-term1970's, the and very challenging over the last decade and i would say even over this new century in 2000, we have had two very difficult market drops. are reallye fascinating -- th

julia: and julia: we begin julia: with market to give you a sense of the individual -- julia: and weof the individual changes. it was at the lowest point of the session. coming back from the lows of the session, the last 30 minutes or so, it is one of the bigger weights. just to give you a sense and only one sex or in the grain here. quarter of a percent, and some of the big draw, utilities, industrials, the industry heavy sectors. walmart down more than 10%, post in the worst daily performance since 2015. it also reported a disappointing annual profit forecast. gap shares down nearly 5%. the debt rose more than the stock did for right aid and noble energy had the best day since 2018 after releasing a flood of positive announcements with an updated three year outlook that forecast higher sales volume and cash flow. look at the government bond market. it tons of options and anxiety about the rising rate. we see the rates higher across the board here. up to 2.2%. auction today at the short end. see a little bit of verizon yield here amid the backdrop. and if we take a longer-term yield

julia? julia: thank you, mark.resident trump has signed a two-year budget bill that ended a brief, partial government shutdown. this boosts federal spending while most $300 billion and puts the debt ceiling on hold for a year. the president is set to release infrastructuren plan on tuesday, plus his blueprint for the 2019 budget. guest.joined by our great to have you with us. if we combine those two elements with a $1 trillion potential deficit at over 10 years of the tax overhaul, are we looking at blatant fiscal irresponsibility from this administration? >> i think we have completely lost our fiscal mores. deficit is set to be above $1 trillion. it will stay above $1 trillion. that is more than 5% of gdp. there is a good reason to run deficits sometime. if you are in a war, if you are in a recession, but a deficit of that magnitude on an expansion outside of a major war, no economic rationale whatsoever. this: we also have infrastructure bill coming, and you believe it is going to create approximately zero new jo

. ♪ julia: live from bloomberg headquarters in new york, i am julia chatterley.radingre 30 minutes on -- into the close, and big volatility index retreating from yesterday size. -- yesterday's highs. scarlet: why the demise of to vixindexes normalized -- indexes. get immediateo company to report first quarterly results. what to expect, coming up. turmoil of thee recent days, markets are trading. abigail. abigail: we have a huge rebound rally from that s&p, dow, and ondaq, opening much lower the opening, gyrating between gains and losses on the day, and now we are looking at the gains for the major averages. the best they since november of 2016, the s&p with the best they since march of 2017, so a big rebound rally. if you look at the today chart, it speaks to the volatility. yesterday we had the worst day since 2011, opening lower than yesterday's low, and now this range appears to be breaking to the upside right now. we still have the dow and s&p 500 down since the all-time peak, suggesting there could be more pain ahead. in theook at that chart moment, but firs

julia: and i'm julia chatterley.time for our -- scarlet: time for our stock of the hour, and what are you looking at? >> jigs to you and scarlet, and we are looking at the select spider etf, down now more than 25%.2. imap, look at the s&p 500 this is a great way to see what is happening sector wide for the s&p 500. ed, notall r surprising. energy is the worst sector, down 4%, but not far behind technology, down more than 2%. the big drag, the point drag for the tech sector is apple. shares of the iphone maker are down sharply, on pace for the worst day since june of last year. they are now down about 3.5% after the company did miss the forne unit sales forecast the december quarter, and the disappointing guidance for the ofch quarter confirming some the concerns that analysts have had, and the fact that the average selling price was higher is not making investors feel better about the situation. the shares are lower. also lower, some weakness in the chip sector. if you look at the semi conductor index, it is down sha

julia: wow.pples power of the margin, it is the one thing tim cook is very focused on. to me, all they need is a bridge to more services in the mix. that is where the profit growth lies. over time it will exploit the ecosystem by offering more and more services and that is very constructive to the margin and a long-term. i haven't seen the number for the current quarter, but i'd because he is to see where services came. -- inpeaking of services the release, apple has its total installed base of devices reaches 1.3 billion in january. there iscation is that a lot of potential services out there. what specifically are the services when you say you think it is going to do more in terms of real moneymakers? which are those? applecare or more into the home overtime. let's take icloud as an example. i keep buying more storage and i think everyone is in that boat as they take more photos. apple is building their own data centers over time. profitables a business, certainly with the cloud business as you

julia: a lot to digest. how our user jesting protectors -- how are you suggesting investors protect themselves? they do that -- how best to do they do that? in: you would think about case of high volatility, normally what does best is cash. that would be a simple way of doing that. volatility,ots of the likelihood of the fed pulling back on rate hikes -- the market will start to assess the low volatility environment shifting to a high volatility environment. you need some downside protection and portfolios. that will change the bullish sentiment we've had over the past year. scarlet: we spoke to the vice-chairman of credit suisse a week ago after the fomc meeting. he was observing that there's a lot of questions about the short volatility trade that was so successful over the last 5-10 years. >> in some loose sense, if you observe somebody in the market today, they've survived the last 5-10 years, which means they have a short volatility strategy in place -- sometimes that is explicit. we call them volatilit

julia: live from bloomberg world headquarters in new york, i'm julia chesley. joe: i'm joe weisenthal. julia: stocks rallying, all three major indexes up. >> the question is what you miss? rick gates has changed his plea to guilty and is cooperating with robert mueller. donald trump has held a joint news conference with the australian prime minister malcolm term ball. -- turn ball. -- turnbull. and shareholders go hunting for clues, the annual letter could offer clues on a succession plan. what'd you miss? an overall upbeat view of the economy and monetary policy, the report said the u.s. labor market is near or beyond full employment. asset valuations. this comes ahead of fed chair powell's testimony beginning with the house on tuesday. with us to discuss, the chief macro strategist -- more to discuss coming up, but can you describe the sentiment now for fixed income investors? challenge the bearish narrative? david: i think we could be going through a small change now, which is a respite from the selloff we have had. we got through cpr, we had a sharp reactio

julia. julia: now let's go to tech headlines.sraeli police have recommended indicting benjamin netanyahu on corruption charges. they are considered embarrassing and could increase calls for him to step down. willl's attorney general review the police materials before deciding whether to file charges. in a televised address, netanyahu said the recommendation to indict him on the charges will end with nothing. the washington examiner is reporting that a powder barack obamat to is harmless, i spokesperson said the substance turned out to be baby powder. the incident follows one in new york that some president trump's daughter-in-law briefly hospitalized after handling a letter containing a white powder substance that was also not hazardous. a's director christopher wray provides the details to question the white house timeline leading to the departure of former staff secretary rob porter trump administration last week following mustek abuse allegations from two ex-wives. appeared in front of the intelligence committee. >> the proces

back to you, julia.majority , we havehe likelihood also seen the u.s. 10 year, take a look at that above the 2.9% mine. this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and now, get a $200 prepaid card when you buy an iphone. it's a new kind of network designed to save you money. call, visit, or go to xfnitymobile.com. ♪ show me the olympic winter games ♪ ♪ like i've never seen before. ♪ ♪ xfinity x1, yeah, i always know the scor♪. ♪ triple corks in 4k... lookin' so sick. ♪ ♪ stream live on every screen, every win, every trick. ♪ ♪ 2000 hours of coverage, get your mind blown. ♪ 50 olympic channels, yup, you're in the zone. ♪ ♪ and if there's something that you want to see, ♪ pick up tha

julia: what do you mean?ave seen the worst of it now. >> normally, when you look at vix, it is not just a spot market. .t is a series you can look many months out. positively is sloping. you expected to be higher in the future. in the one-month contracts are above the four-month contract. the market is pricing in a volatility spike in the next 30 days. every time that has happened since 2004, it occurs near market bottoms. the magnitude of that in version on monday was the largest since november 2008. november 2008 was the structural low of the s&p in that huge bear market. we were speaking about this with rachel evidence. the spotlight is on these etf probably trilled and. -- or we are thinking there are going to be other etp is that are similarly designed, that could see a big plunge, a rush for the exits. do you share that concern? >> one of the problems with financial markets, many innovative products come with surprising problems because you never are really getting rid of volatility. that in a lowised v

julia: i am julia chatterley.et's get back to washington where janet and ben bernanke are speaking together. >> how did that happen? i have heard it does happen but interesting transition. chairwoman yellen: it's a good question, i never had any policy experience although i had a stint working as an economist and international finance division at the fed. always been interested in holding a policy post of that sort. phone rain, its was the spring of 1994, there were several divisions -- decisions on the board of governors. it was someone from the treasury asking if i would be interested i asked them to hold the phone for a couple of minutes and decided maybe i should talk to my spouse and see how he would feel about moving to washington with my son. said, of course we will make it work, this is something you probably would like to do. i got back on the phone and basically said, if you offer me the job, i would be delighted to take it. waited a couple of months, lo and behold, i was nominated, along with alan blind

julia, back to you. julia: thank you.xclusive it we will speak with the goldman set -- as we head into break, coming off the session highs still in positive territories. >> financials and technology leading the way up by better than 2% when it comes to financials. >> from new york, this is bloomberg. ♪ mark calling issued in -- mark: a shooting sent rushing out in the streets as swat members locked down the building. converged on the scene as emergency workers appeared to be treating possibly wanted people on the sidewalks. it happened at the douglas high school. you are looking at live pictures. no word on how many people may have been hurt. authorities say the shooter is still at large. after days of negative press following his defense of a former aide accused of domestic violence, president trump to make clear his thoughts on the issue. everyone knows i'm totally opposed to domestic violence of any kind. everybody knows that and it almost wouldn't have to be said. now you hear it, but you all know it. pencevice presid

julia? julia: thank you very much. i will hand it to scarlet. scarlet: it has been a banner day for the cme group. they reported a fourth-quarter profit surge thanks to a big benefit related to the tax overhaul. revenue beat the highest estimates. we are joined by terry duffy. a solid quarter and your stock is higher today. what i did notice is the price hike in your market data business. that business pushes growth from last quarter. do you worry you will lose customers with the price increase? terry: it is hard to say if we will lose clients on that are not. i do not believe so. there could be a little bit of attrition, but we look at where our competitors are placed and we are still cheaper than them. we have marked up our data. for years it was free for many years. we started to charge for market data like our competitors have. we're still the cheapest on market data throw all the other exchanges. i'm not really concerned with that, but at the same time there could be a little bit of attrition. scarlet: but you see room for an increase nonet

julia, back to you. julia: coming up, tech stocks on the rebound.ook is trailing its large fears, coming right up. this is bloomberg. ♪ mark: i am mark crumpton with first wrote news. trump is hosting students from the florida high school recovering from the mass shooting during a listening session. ae white house would hold conversation to improve school safety, and groups representing survivors of the sandy hook and columbine shootings. administration is seeking to respond to the shooting in parkland, florida that left 17 that a week ago today. the white house says the president hopes to hold an open discussion on how to keep students safe. in the meantime, students from marjorie stoneman douglas high school held a rally in tallahassee to urge lawmakers to combat gun violence. special counsel robert mueller charged paul manafort and rick gates with a filing, and a filing specified the nature of the charges and whether or not it will be expanded, the case will be expanded against both men or added others. they were indicted in october for money lau

julia: you called it healthy.u look at what is going on with the selloff, the dollar weakening consistently, i would imagine that some of the officials and policymakers in emerging markets were getting uncomfortable with their currencies that the need to the extent with the dollar falling. we saw china currency we can overnight, is this weakening something will see play out that there is going to be a ripple effect with other countries letting their currencies we can in the days and weeks to come? >> i do think so, and as you intimated, it is welcome. there have been multi-they can highs against the dollar, and there's nervousness from korea, taiwan, the usual suspects. that otherricing markets aren't dislocated. malaysia doesn't start packing, i think they are ok with currency weakness, but it is a big if. you may have jobs on the other side saying, fundamentals are strong, don't panic, from emerging markets. with steve mnuchin talk about the u.s. dollar, job owning, getting a blow nervous if you look at the stre

julia: i'm julia chatterley.ate leader is announcing a bipartisan two-year deal on the budget this afternoon. howlett fair in the house? let's go to the house, where kevin cirilli is joined by a central democrat whose vote will be crucial during this process. here on busy afternoon capitol hill. --are joined by congressman the congressman from california. will you support this two-year agreement? >> i do not know what it is yet. i like the cap, the military, the domestic programs also being funded. there are other issues in the house. the senate has an agreement to take up the immigration issue and vote on the floor. no such agreement in the house yet. i think we should get forward and get this done. kevin: increasing opioid addiction programs, disaster fund relief, and extending the limit through 2019. house minority leader nancy pelosi says she is concerned about immigration. do you think enough democrats will support it? you were one of 17 democrats who supported this last night. >> we are looking for this at

julia: this is critical.impressive things is they give an active management staff the same thing as a passive strategy. >> that is important. if i told you you could have active management for the same as passive you would have said that is crazy. but here we are. , 26average expense ratio bits versus 21 basis points for the passive. that is pretty close. theirrd launched today active etf's. those are 13 basis points. that number is likely to go down even further. scarlet: vanguard is its own issue. no matter what it is driving prices lower. vanguard -- really good's a point. then card is such a large company they can afford to offer their products at large -- lower prices. they need to hit their products into the hands of investors. you have the option of buying one for 30 basis points. it is a little bit of a you're going to go with the cheap one. >> you are benefiting because prices are coming down but you have to read the small print. >> it is exactly that. the vast majority of flows and assets are in van

i'm julia chatterley.are tuning in live on twitter, welcome to closing bell coverage every weekday from 4 p.m. to 5 p.m. eastern. you begin with market minutes. jay powell headed to capitol hill and offer testimony for some time as fed chairman. stocks declined. the dow off by 301 points. scarlet: and really going out -- joe: and really going out on the lows here. final hour.n ugly scarlet: sticking to close the last 10 minutes of trade. you can see the s&p 500 losing 35 points as well. for the individual movers. different moving parts here starting with what we have just talked about. comcast making, a surprise offer of 22 billion pounds, $31 billion for sky which i go from disney called the crown jewel of the package he was seeking to buy from fox. they were told to expect a bidding war and not any kind of resolution until december of 2018. julia: the wrangling will continue. scarlet: and we see comcast beating out disney. the pullback here is seen as a buying opportunity as a possible deal with walgreen

julia: "what'd you miss?" donald trump infrastructure plan can be running into potholes already. just hours after releasing the $200 billion plan to upgrade works, the white house was already fighting back complaints from democrats over funding. joining us now is congressman bill shuster. he is the chairman of the house transportation and infrastructure committee. great to have you with us. thank you for joining us. i know you have been urging some of your colleagues to increase the federal gas tax in order to help the financing element of this. i just wonder, do you have support from senior republicans? speaker ryan for example? is. shuster: i think it important to note it will be difficult to do anything with revenue in this town, but we have to address this situation. i applaud the president for putting forth an infrastructure plan and bringing it front and center to the problem we face in america. it needs to be a bipartisan bill, but it we need to be fiscally responsible. the highway fund will run out of

julia: live in new york, i'm julia chesley. joe: i'm joe weisenthal. julia: another day of choppy trading. the dow up 200 points. 85%.ar yield around >> the question is, what did you miss? announce aers bipartisan deal to fund the government for two years. the senate still has to vote on the deal. investors are trying to make sense of the violent selloff. going back to the signs and wages to take stock of the economy. he joins us in the next hour. and the spectacular launch for the falcon have the. investors will be watching the cash burn. >> the bipartisan agreement facing bipartisan opposition in the house. mitch mcconnell and shop just chuck schumer announce a deal to avert a government shutdown. that bill is hitting an impasse in the house. they are voicing objections from all sides. now from capitol hill with the latest. it could take all afternoon if you explain what was involved. talk about the critical issues that had most contention from both sides. aspects in this particular budget deal are less contentious. there is a significant increase of

julia: a leaky one.is an a technology, and when people talk about value, is that something that can be going forward when you get broader adoption when you have a larger market where there is more liquidity? it is one of those things like with the internet in the mid-90's, it was email and creating your own webpages, i think changes like that will be the same for this technology. interest investment in blockchain, that underlying building blocks here, desperate to point out that the coin is separate from whatever it is their interest is in blockchain. noiseink the regulatory sense sentiments in the underlying technology here or is it quite relevant? irrelevant? is seen that, it they will merge, but it is seen as separate. we spoke last time, there is a long-running sentiment of blockchain and not the corn, and a lot of people in the bitcoin world say it is all about the going -- we don't see the price sentiment in the blockchain piece. likewise, going the other way, movement in the blockchain space don't

pierre: you have got to get excited. >> back to you, julia. julia: great interview.g up, the next move the berkshire ceo says he wants a big deal after a quite a b-17, and more in our deals report next. this is bloomberg. ♪ scarlet: this is bloomberg markets. is now time for the deals report, more challenges for chipmakers. press negotiations -- spectrum cooks up a $10 million deal, and the george foreman grill maker agreed to buy a charging, and we have warned buffett's $116 billion worth of cash on hand. where he will put his money next. qualcomm you with us, --.com, i stumbled onto the name their. re. what is next? expecting then real fireworks, and you are going to see -- qualcomm came out today and said maybe we want and we are fears of antitrust and there is a deal to negotiate. but we will give you access to our butts and the you come in and do an ndn, and mark come came in and said this is a cheap trick and don't want this is not a negotiate and think there is a reason to go ahead and have to vote. wants to appear conciliatory but they have not changed anythi

let's bring alexi and julia.s there something different with karen mcdougal's story that could change the ho-hum nature of these allegations against president trump? >> well, i think that karen mcdougal essentially came out and gave quite a bit of details about the alleged affair. but it's interesting, because it will be interesting to see how the evangelical and conservative right responds to this. they've stood by president trump in the face of a lot of these allegations. they keep piling up. >> alexi, republicans, are they willing to look the other way, because despite the access hollywood tape and previous allegations president trump still won the election. so what's their argument going to be during the midterms when they're faced with questions of moral responsibility and the me too movement? >> i think the me too movement is significant in this time. but as you mentioned, trump won the presidency despite being accused by dozens of women of sexual assault and harassment, after the access hollywood tape we h

julia: thank you very much, taylor. in a few moments time, president trump of australia, malcolm turnbull, are scheduled to hold a press conference from the east room of the white house. we are showing new life pictures there. to our reporter, who is in the room and waiting that press conference. great to have you with us. you can take your pick up the hot button topics these men have to discuss, whether it is the peninsula, their relationship with china, but let's start with the relationship between these two men, which started on a difficult foot. it started with an immigration dispute, the issue of refugees that had been worked out in the obama admin a stray should -- administration. that breach has been patched up. officials from both countries have described the relationship between the president and the prime minister as perhaps as close as any of the u.s.-western allies. good guidance and it have were allied countries to talk to president trump about things you aren't -- that are important to him. the president i

[laughter] julia: electronics? is interesting to see what they will do with it, there is going to be some tension for them because they save more, as you mentioned. they presumably have already theirt their age than predecessors did at the same point in their careers, but at the same point, some of it is invested in the market, and if it was to sophomore, they have if it was to- overcome. it will eventually be there for them 20 or 30 years down the line, but that is an emotional challenge. scarlet: that is a big hurdle to overcome. you can find his columns on the bloomberg. hire. up, jeter's new we got the bloomberg school just ahead. this is bloomberg. ♪ scarlet: this is the mark markets. -- "bloomberg markets". it is time to focus on the stock of the day. rebound alert? airlines are underperforming, even before the selloff, they announced messi quarters, and lastly, with airlines, if you look at the here we see the s&p 500 airline index down 20%, rebounding a little bit. whether it lasts is to be determined, but