the much-watched shiller home price index, which dates back to 1988. it revolutionized how the housing market measured moves in prices. shiller says a cut to the mortgage interest deduction would not hurt prices. >> the general idea is it would push prices down. if people are rational. >> reporter: you're saying if people are rational. >> yes. >> reporter: the questio do we use the mortgage interest deduction as our major incentive to buy a home. >> no. most people don't itemize. and so it's not big. >> reporter: shiller did, however, think that a cut to the property tax deduction would have some impact, if only to rich people. >> that is going to be substantial, a substantial hit to people who are paying a lot of property taxes. and it might be a consideration that you make before you buy this big mansion in some high property tax state. >> reporter: shiller also had a surprising view of rising mortgage rates. >> i tend to think it's not as great as you imagine. because people are people. and i don't find that historically home prices have reacted at

shiller will be joining us as well. get a take on passive investing as well. not a fan.say he is robert shiller coming up. this is bloomberg. ♪ ♪ guy: this is "bloomberg surveillance." i'm guy johnson in london. francine lacqua over in paris. tom keene has the day off and will return soon. the fed is expected to raise rates this week by a quarter of a percentage point. outgoing fed chair janet yellen also signaling more increases next year coming against the backdrop of a robust u.s. growth. vibrant,arket looks but have yet seen wages picking up, and that is a problem. i would not expect much from the central banks. is still on the rails. joining us is bloomberg's simon kennedy. simon, the market does not really believe. you look at the end of 2018. 2.1.edia dots market said 1.8. it was a little wider than that, but the market does not believe the rates are going up. simon: what is interesting is that people who meet the market, the golden sachs -- the goldman sachs's are seeing the markets moving next year. so, you kin

. >> shiller >> robert shiller. >> really? >> didn't he have -- >> we're going to move on.our trader blitz. celgene shares are higher. >> sorry >> are you with me >> no, i thought we were going to commercial. [ overlapping speakers ] >> we'll be right back >> we own celgene for a while, still down 11% for the year. it's great cash flow 11 times earnings. >> keep going. >> that's what you want to know. >> coming down and cash not many acquisitions been washed out when compared to -- >> keep ongoing. >> are you okay? >> this is why you're not a regular. >> he is a regular we're good all right. western digital, toshiba trying to settle their chip dispute next week. western digital shares are rallying. >> sure. first off -- >> they've agreed in principle. >> yeah, i mean, look, you don't get that sort of news unless it's pretty near to being done that would be good for western digital. removes a legal overhang the stock is cheap in terms of toshiba issue, that's not where the exciting part is. i frankly think that apple is the more exciting part there because it's the winner in

on tuesday, we're going to get a read on real estate with case-shiller home price index for october.as. but not quite. and for those with a sweet tooth it is national candy kane day. on wednesday, pending home sales for november will be released and it marks the 85th anniversary of new york's radio city music hall. friday is the last business day of the holidays bring special occasions, and if that includes wine, ray isle is here to help. he's the executive wine editor of "food and wine" magazine with suggestions for toasting the holidays without breaking the bank. >> great to be here. thanks for having me back. >> what have you brought us? >> i brought you some -- so it's not too late, you know, to buy wine for the holidays. we're in the holidays but it's not too late to buy. i've brought some really great values perfect for parties, also taste great. first one, white wine cote de rhone. >> i was going to ask how to say that. >> pretend you're french from one ofe producers in the rhone. split the difference between people who love chardonnay and people who love sauvignon blanc. this

hey everybody i'm stephen bob shiller task hollywood guy the suspect every proud american first of all i'm just george bush and r.v. and to suggest this is my buddy max famous financial guru is well just a little bit different on the abraham lincoln one of the oh no one knows up with all the drama happening in our country i'm shooting the road have some fun meet every day americans call me and cooks the story to bridge the gap this is the great american people which. will. be first like when you all know it's coming through and spoke. if somebody would have been told me that i'm going to spend my life for two plain committees or a little disco course i would have sold it was clearly seen. every night all we were attacked by the arabs oh no we will attacking them and we will extremely shocked and saying but that's not possible i'll make those moves to such scenes and then the soldiers and myself from the work of stupid lose both wampus in the house with all the pools of our we've all dealt with over they all. believe much second class citizens in the on call. it was like lightning in my

hey everybody i'm stephen bob shiller tast hollywood guy the suspect every proud american first of all i'm just george washington and r.v. and do say this is my buddy max famous financial guru and well just a little bit different i'm honest you can find no no one no doubt with all the drama happening in our country i'm shooting the good have some fun meet everyday americans. and hopefully start to bridge the gap this is the great american people. i. thank. god i. won't but. i'm. sure i got out get you out you're. welcome back across like we're all things considered peter lavelle reminder we're discussing still another washington scandal. ok let's go back to phoenix i know you've got a lot to say go ahead. well look i think richard is the one that's actually in alice in wonderland because he's ignoring the facts that there are all these other conflicts of interest as well as all these other crimes that have taken place here and yet we're sitting here concentrating on something that's already been debunked and the fact that there was no russian collusion we now know that james comey is e

do we go backwards, like robert shiller suggests?-- do we decide what level of taxation we need to ensure inequality is not too concentrated in the society? mr. whittaker: we are not saying that. that a from our polling company needs to pay its fair share of taxes, and we analyze ax payments on a very level playing field basis. the big question is what does the company do around that issue? in particular with the tax bill. what does the company do with the windfall cash infusion it will gain from the tax bill, potentially. we are saying that a company should prioritize other stakeholders, and in doing so, it will be more successful over the long term. companies, top five they are all tech companies. they pay their people well, they do well across all the things we measure. come across our rankings, their companies from all industries that do well. vonnie: thanks to martin whittaker, it is a fantastic list of there will be an etf eventually available you can process from these just companies. we will let you know when that happens. co

diana olick joins us with an expert, robert schuller, yale university and co-creator of the case-shillerex >> who better to talk about home prices and professor, thank you very much for joining us let's get right to the tax plan. it has been claimed that if this republican tax plan goes through, cutting the deduction cap in half and cutting property tax deductions that home prices can fall as much as 10% or even more in states like new york, new jersey and california. what do you think of that claim? >> it could happen on the other hand, if i think like an o efficient market theory, which i'm not, but let me put that in, we already knew the general parameters a could month ago and we heard about these things in the elections so it's not news. it will be a little bit news now the other thing is the magnitude of the effect or people have studied that if people are rational and calculating the standard deduction and various things that could affect, but the general idea is that it would push prices down if people are rational. >> but you're saying if people are rational the question is do w

. >>> there is a pair of economic reports on the wall street agenda the october s&p case shiller home price index is out at 9:00 a.m. and that is followed by consumer confidence an hour later at 10:00 a.m we're edging closer to the end of the year and that means time to talk about the big things that could shape 2018. phil lebeau has your play book for the auto industry. >> after three straight years with sales topping 17 million vehicles annually, auto business will slow down in 2018 sales are expected to fall 3% to 5% due mainly to a slight pullback in demand still trucks and suvs will remain popular picks thanks to gas prices that remain relatively low meanwhile, you can expect sales of electric cars to charge up in 2018 thanks to two high profile vehicles first there is tesla's model 3 which will be seen around america more often as the automaker ramps up production. meanwhile gm expects sales of the volt to increase due to a full year of nationwide sales. finally, expect to see plans for self-driving cars to expand in the next year. waymo will start its self driving ride share se

joining us, yale university professor robert shiller become to you both. >> thank you >> you're our bill here, we'll let you make the case. people say to themselves, wait a minute, i should have bought bitcoin four years ago when it was 5 cents or whatever, what's the case of buying it at what did bob say, $18,000 >> yeah. there's two things to separate here number one, i think bitcoin as a currency when people are looking at investing in it, it's still very early we're starting to see retail interests spike and a lot of the buying activity we've seen over the last few weeks has primarily really been driven buy retail investors. institutional investors haven't really had a way to get into the asset class. as you look at the launch of futures, many people are really pricing in that institutional money coming in with this recent run-up i think there will be a much bigger run coming in 2018 when more products and instruments come to market we have three markets under our family a bitcoin investment trust that as of today has $2.6 billion in assets under management starting at $300 million e

chang's and kevin o'leary is with us along with robert shiller and oak tree's howard marks "power lunch" at the top hour, but "halftime report" is back after this. ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ ♪ let out your inner child at the lexus december to remember sales event. lease the 2017 is turbo for $299 a month for 36 months. experience amazing at your lexus dealer. jerusalem as israel's capital back after this. >>> welcome back to "the halftime report. time for the trader blitz. first up, h & r block soaring on its earnings jim? >> this is not because of the earnings this is because next year people are going to need more help with this tax bill and its ramifications. they make all of their money in the april quarter so the quarter that just passed has no relevance. >> this was supposed to simplify the code what do you mean home depot announcing a $50 million share bu

you, paul manafort, reince priebus, mike flynn, steve bannon, mike dubke, sean spicer, keith shiller,k kazowitz, anthony scaramucci, sebastian gorka, and tom price. i may have misussed one or two. if he's such a great people person and manager of people, why has there been such huge turnover? >> the way the president managed with the campaign when i was part of it, he never got involved in personnel decisions. he hired me to run the campaign, and then he never said, corey, you've got to hire johnny or billy or bobby. that was my responsibility. at the white house, particularly when they stood up the new administration, reince priebus was in charge of bringing those people onboard. people have the opportunity to perform in trump world. and if you don't meet that performance expectation, he's going to invite you to do something else. but he doesn't micromanager, other than picking reince priebus as the chief of staff, reince, you go and fill out the government the way you want to. and i think that's a fair way to manage. >> there is an incredible moment in the book, it's after the "acce

the s&p is not overvalued unless you go to the shiller index which is subscribed.f you look at a 25 year average it is 25 profit to earnings ratio. that is where we were a year ago. you put on top of that a tax-cut and you have a hot market. my feeling is the market will do well next year unless there is some unseen event uri and no one else can see. but looks like a strong growth year for the economy and a strong stock market. charles: thank you, appreciate your time this morning. a jetblue plane skidded off the taxiway in boston. >> a flight from savannah, georgia to boston logan airport. when it hit the runway it skidded off the runway, did a 180, it's fun 180 °, came to rest in between two runways, passengers all evacuated safely, went to the terminal, judges give a perfect 10. charles: too bad. speaking of planes, a passenger on a united airlines flight says the flight crew kicked her out of her first-class seat to give it to democratic congresswoman sheila jackson lee. that woman is demanding an apology. more details coming up. big cuts to the united nations,