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tv   Bloomberg Markets Americas  Bloomberg  December 7, 2017 10:00am-11:00am EST

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and welcome to bloomberg markets . ♪ vonnie: here are the top stories from bloomberg and around the world are president trump getting readyvonnie: for a big t congressional meeting spirit most republicans and democrats avoid afort to government shutdown. we will hear from one house black, at thisne hour. then, president trump pauses decision to recollect -- recognize jerusalem is already prompting angry demonstrations in the middle east. him him -- we will explore long-term
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consequences. through $15,000, gaining 60% in the past five trading sessions. we hear from howard davies, who called the whole bitcoin surge in rational exuberance. that?er we are about 30 minutes into the trading day. >> that is one reason bitcoin is so appealing. we see the slow and steady gains on equity markets and other traditional assets. the bitcoin rise is something different. we are seeing gains on the stock market. industrials, energy, and materials. industrials, energy, and materials have been leading those gains as we have sessions little changed in the past several days. overall,, not necessarily
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that large. they are larger and larger, potentially. take a look at the correlations here. back several years. you can see the loosening correlations. less frequently in lockstep, which may lockstep, which may open up more opportunities for folks who called himself -- call themselves stock pickers, individual companies that will give them outperformance. we will keep tracking these are there are companies giving out performers today and one of them is broadcom after that company came out with earnings that beat estimates, largely on the strength of its business. two biggest customers, apple, broadcom is an the process of trying to buy qualcomm even bigger. we were seeing a ripple effect for broadcom. that is not happening now. apple is up a bit here. we are watching some health care names. a combination therapy at a broad however, results of the
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study sooner than had been anticipated. now, bit more attractive. therapeutic's, that one analysts cause a game changer. study results show it does not have revenue. developing a drug based on a similar compound, those shares today. percent jonathan: we were a third day earlier up by .4%. that is the run we have had
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recently. striking down the drugmakers across the european stock market, sterling is rising. the ftse is down little changed in france, germany, up 5.1%. the changed. soaring today a record 32% after the announcement. a bookmaker. two companies are in detailed discussions. under which 75% of holders, the it could spur say, andtion, analysts we talked yesterday about the selloff continuing.
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78% lower. the furthering debt further clothing retailer, announcing definitely delaying results. interest, in search of non-core assets. precipitated not move upwards according to two people familiar with the matter. says -- it is said to have been resolved. the only outstanding issue. we will talk at the top of the next hour.
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sterling was down for a third .ay consensus on the analyst community is likely to strengthen next year. bank of america merrill lynch to -- sterling versus ing groups, the currency region one dollar 40 next year. that is adopted by an increasing number of strategists. said it would rise to 150 by the end of 2018. breaking news. irish border, should i say, the only outstanding issue. it is getting tense over here. vonnie: i'm dying to know what the disagreement is. we don't of the details but it will be fascinating to see.
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u.s. politics, president donald trump will meet with congressional leaders from both on aes as lawmakers work spending measure to avoid a government shutdown saturday. house and senate republicans are also trying to hammer out a tax bill to sign before the end of the year. joining me now is kevin's really. what makes it through a vote today? >> the house of representatives will pass a short-term continuing resolution or a way to fund the government through december 22. they have to pass something before midnight tomorrow euros there is a government shutdown pier 1's this gets to the house today or early tomorrow, the senate will pick it up tomorrow. a partial government shutdown andeen now and the 22nd to december 22,
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things get more interesting. president trump meeting with democrats today at the white house. i don't anticipate anyone in washington thinking this back-and-forth is going to have any real impact on their ability for tax reform by the end of the year. what does the extra time by in terms of leverage for republicans, i imagine? >> not much. you think back to a couple of months ago when president trump made the short-term deal with democrats, but them up until now. they have to come up with a longer-term solution. first and foremost, republicans do not want to have a government shutdown and neither do sitting democrats for that matter. candidate gets blamed for a government shutdown. the second point is you will hear a lot more about immigration. the president wants to see the wall funding wrapped into these conversations and democrats want to see some type of solution with daca and dreamers. that is why this will be more
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contentious as the few weeks have -- will play out. the president signaled a government shutdown is not fully off the table. he even said it might be good for him p publicans want more defense spending and democrats have a longer list of demand. how much leverage do democrats have? >> they have leverage in the sense that if the president loses some conservative and deficit hawks and even folks who would not like to see a compromise on something like cruz, he needsed to pick up some democrats. that is why the president is to work with democrats on this issue and tax reform. >> we need to get votes done and get that signed by the president if it will happen as republicans say it still is.
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what is left? we need to get votes done and get that signed by the committe, and in the senate, they now come reconciling the senate version with ours. and local tax deduction is being and we will interview two lawmakers who actually would keep it the same, and then you are starting to hear about other issues festering beneath the surface i even on the issue of lowering the corporate tax rate, we're hearing they originally advocated for 15% and we could to 22%. they originally said the original headline was 22%. watching in keeping score, not , allon the corporate rate systems go and still no major hurdles i am following now that would leave me to believe if nothing gets done by the end of the year or early next year.
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>> thank you. as kevin was saying, coming up, we will talk with congressman chairman of the house budget committee. let's get to first word news. here is taylor riggs. taylor: more backlash to president trump us his decision to declare jerusalem as a capital. hamas has called for another uprising against israel. jerusalem is being kidnapped. the number of troops deployed in the west bank. there is speculation that democratic senator al franken may resign today over sexual harassment claims. more than half of senate democrats have called on franken to step down to her he plans to make a statement today in washington. wildfires raging in southern california are having a severe impact on business. they forced tv and movie filming to shut down. guthrie billion dollars of
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market value from the regional utility international. one of the fires has burned homes in upscale bel-air and led to a partial closure at one of the busiest freeways in los angeles. it may make matters worse. australia has become the 25th --ntry in same-sex marriage the legislation was approved weeks after the public overwhelmingly backed a change in the law in a nationwide survey. australia is expected to hold its first same-sex marriage as early as next year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am riggs. this is bloomberg. vonnie: thank you. ,appening now on capitol hill christopher wray is testifying before the house judiciary committee. but it routine hearing, could help president trump's's
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comments that the fbi is in , and the chairman literally just said it is troubling and the fbi's's reputation could be called into question. we will bring you any relevant headlines live. futures in focus is next. oil trying to rebound after a big selloff by one point -- .1%. ♪
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mark: i am mark barton. quinn. i am vonnie this is bloomberg markets.
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time now for futures in focus. crude oil rebounding. it is beginning to sell off a little bit again. foru.s. dollar is advancing a fourth straight session and is now at a two-week high. discuss is a senior market strategist of trading advantage. what is going on here with oil? it is hard to know which direction we are headed. >> yes. week of thelast itc extension, i looked at more of a buy the rumor sell the news type of scenario. had a big run-up, the had a bit on the opec decision. it is what is happening here in the u.s. inventory data yesterday.
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74 million barrels per day production u.s. crude, one of the largest we have seen. just continuing on the rise. ill keep a lot of pressure on the price of oil. vonnie: does the incremental rate have an impact on the price of oil's everyday? on a day-to-day basis. if you get a pattern over a few months, what really stood out was a 9.7to me million barrels per day. opiniony is in my again, it will really put a lid on oil prices. impactinghening and down to the ema?
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>> for individual equities, our economy here is pretty robust when you compare it to european economies. to 35. trading that is helping to propel the dollar here. reform,talk of the tax once the final decision is made if the tax reform does go through, that will believe this continuation of the rebound in the dollar here. as we are seeing potentially a lid on the price of oil, we have seen a bottom floor in floor in the dollar crisis here. really quickly, are you prepared for a government shutdown to come this week?
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>> personally,>> personally, itt really affect me. are the markets prepare for it, yes. they are. they are pricing in a minimal chance of that happening, less than 10%. is it does happen, the belief is a stopgap measure that comes up quickly here. it probably will not affect the overall market unless we see something pro tracting and prolonged out through the end of the year. even if we have a shutdown, i cannot imagine it will be more than a few days. thank you. that is today's futures in focus. time for a look at the biggest business stories in the news right now. cut 12,000 jobs in its power business, about 18% of the workforce or most of the jobs will be outside the u.s. struggling with the downturn in
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the coal power market. there's a reason comcast is battling disney so hard to acquire film and tv assets from 21st century fox. according to a person familiar, it wants full control of sky, .he british television provider they see the technology is better than most other pay-tv companies in europe. there is concern china may be resorting to illegal tax breaks on computer ship import. charged engineers material with trying to steal the design and sell it to a chinese stock up. the material is largest provider to make semiconductors. bloomberg business flash. vonnie: testifying before the
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house judiciary committee, it begins a routine oversized hearing. reports of bias in the fbi are deeply troubling and of course we are watching closely. following president trump criticism of the agency, you can watch bloomberg life go. i on that.keep an another barrier. $15,000 for the first time nearing $16,000 as the gains continue. we will hear from howard davis, the chairman of rbs. this is bloomberg. ♪
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mark: for bitcoin today, it
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$15,000 and is nearing $16,000 now. about what is perceived as a bitcoin bubble? >> i am afraid this is irrational exuberance. as greenspan's favorite phrase, he then found that the market kept on going up after he said it should stop. nots an unusual market and in a normal to a trading market. the biggest rising trading all out, we are trading here and i am not sure the biggt normal rational market analysis can really eliminate it. derivatives and wall street.
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should cme and the cboe, should the american derivatives market make a formal market in this thing we are seeing on this chart right now? >> i would counsel them not to it this point. knowot quite sure they enough about what the underlying is about the nature of the supply and demand of underlying asset. movenk it would be a risky in that direction now. >> we are understanding for example the cftc are looking at clearingsts limits and before these contacts are given the green light. can futures put an end to bitcoin if it does not go well? could, but i do not know how you would price the future. maybe someone smart enough to do it.
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the normal way would be very difficult to adapt to this instrument. >> how do you see a developing? if nothing happens with bitcoin, the underlying technology could be used in other ways. >> it is much more interesting. again, some banks, a bit cautious about the security of it. idea of a the distributed ledger, which makes payment systems much cheaper and faster in real time, is a good one. block chain i think has got life in it. mark: this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. vonnie: live from bloomberg world headquarters in new york, i mark: am vonnie quinn. mark:mark: and i am mark barton
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in london. this is bloomberg markets. let's check in. taylor riggs has more from new york. taylor: protesting president trump us his decision -- york. inas, a third uprising israel. .housands died theresa may has not given up on meeting this deadline for coming up with brexit proposals. she is preparing another plan on what the border for ireland and northern ireland would look like at the brexit. own cabinet and political backers in northern ireland. applications for unemployment benefits in the u.s. fell to a five-week low an initial jobless to 200 36,000.n hovering at their lowest level in more than two decades.
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they come in with their november jobs report tomorrow. director $450 million in auction is headed to the middle east. it will be displayed and according to the new york times, 70's rents -- saudi's prints from a remote place. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. vonnie: let's get back to politics. for the u.s. government shutdown maybe even saturday. joining us on capitol hill tennessee, chairman of the house edge it committee and part of a conference committee also final tax bill. let me ask you first, did you get a government shutdown this weekend? not believe we can go to a government shutdown. i anticipate that we will have
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the votes for that today in the house of representatives. vonnie: chuck schumer is saying a long-term deal is being by the freedom caucus because of domestic spending priorities. which of those are sticking points for you? >> the major thing is we need to fund our military. it was hit unequally in this. we were able to fulfill our obligation to fund the military. so we can ask them what to do in dangerous situations. eye on thekeep our ball and places around the world that are so dangerous. we need to make sure we have the tools needed to fight the battle in offshore and to be able to come back home healthy. that will be our major focus in
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continuing to fund the .overnment vonnie: does that mean you will find it for a few more weeks and what will you give democrats for that? >> we have not heard exactly what they are negotiating but you have to keep your eye on the ball now and fund it for another two weeks there. would you be ok with lamarr being the negotiating tool or daca? >> i do not know that we have enough time to iron out the things we need. this is our responsibility in congress and we need to take the time to have hearings and go through regular order in the committee. that has not been done yet and i not sure that is appropriate to put that on a spending measure. it is something we need to do. and i will acknowledge that. but we want to make sure we do
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that very thoughtfully and that we have all the information we need. funny: the president said he is fine with the government shutting down it might even be good for him. would it be acceptable to you if democrats were to stand firm on something like this? >> i have been through a government shutdown previously in a government shutdown. it is our job and our role to functioningent because of what we do here in congress. inclined to say government shutdown is good for anyone. vonnie: let's move to tax. what is the final bill looking like? will we see a 23% corporate tax rate? what happens? >> i am on the conference
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we are discussing matt and we have to do something about lending those bills together. though much of the bill has a lot in common. there are sticking points we need to iron out. 22% is on a table. we believe getting the economy everyone'sll help pocketbook. vonnie: the last time we spoke, he said roughly the same thing but there is due to be a vote today. it needs to get ironed out tonight. >> as far as the conference onmittee, the vote is continuing to fund the government and the continuing resolution. the conference committee, there will be a vote on that today. handfulthere are only a of congressional sessions left. >> and we will work on trying to
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amend these pieces of legislation. will be voting on what has come out with the house and the do.te to vonnie: re: making progress on the sticking points? >> we are and we are working right now with the committees to look at what it is we have in common and what the biggest sticking points are. >> we hope you return when we get closer to the negotiation getting settled. that is one of the negotiators at the tax table. mark: leaders warning that president trump's decision to recognize jerusalem as israel's capital risks igniting new violence. we will hear from the former u.s. ambassador from israel to george -- to jordan.
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this is bloomberg. ♪
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in the city of london, i am mark barton. vonnie: in new york, i'm by quinn and this is numbered markets. hours after president donald trump said the u.s. recognizes jerusalem as the capital of israel, palestinians took to the streets to protest and shortly after hamas military group that controls the gaza strip called for an uprising against the --aelis, what are the geopolitical implications? joining us on the phone is an too many former
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economies and also the united nations and russia. former secretary of state for political fit -- clinical affairs. the american mediation now, absolutely no longer in question. >> no. i think it is even more jeopardized than before, where it was hard to believe that the negotiators that were out there working for president trump were making any real progress. hase the middle east constantly astonished us by getting worse when we feel it cannot. i do not think that is necessarily an argument here, in part because we have a unique relationship with israel and the palestinians and the rest of the arab world, though this is quite damaging to the latter relationship. it will take time and we'll have
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becausehere it will go of our unique relationship with help -- no one else has the potential for influence but she she -- if you're inducing that with israel, it is a real controversy. vonnie: the prime minister said we will not accept your patient -- patronage and said now the u.s. has really played itself out of the game. vonnie: the prime minister said we will not accept yourdoes the? is there still a jared kushner say i ami wish i could still hopeful and two weeks ago, the administration said it would not move on the jerusalem capital -- out of respect for jared kushner's work, i was somewhat lloyd. it is certainly extremely negative particularly in the near term for u.s. influence
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affecting the israel palestinian that the president hopes for but seems even much further away. mark: how do you explain the timing of the decision? is there a possible link between this and the molar investigation? >> i believe there is. let's be frank. this is probably a way to dog moment for both president trump and prime minister netanyahu, also facing some investigating work in israel. we will have to wait and see where they come out but the president in the last two weeks has denied the statements he made about the hollywood episode, and restated the birther argument on barack obama. he seems to be very much engaged in a pancake -- campaign, for some time, when it is bad news,
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do your best to change the subject and do everything you can on a daily basis to stay in the headlines on whatever subject it is and hopefully try and take the bad ones and turn them in with a new episode of alternative truth if there is nothing favorable. it is not presidential but it is certainly trump. mark: how does the decision fit into the strategy of a conversion of interest in israel against iran? >> were there to be such a convergence, this is a bit of a hand grenade in the midst of think traditional saudi attitudes and regional attitudes all have very much warned against making this kind
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of move and while the president has been careful about not defining the boundaries, which would be a worse problem, it is in no way a substitute for the damage of the initial decision of his to move the embassy and declare jerusalem a capital and we have seen it in the violence of today. let's hope in the near future this goes down but there is no explanation -- expectation that this will die quickly and quietly despite everybody who has the middle east best interests at heart who hopes this will be the case. vonnie: what gives you hope there will be a peace process still underway? it would seem at this point that it is done and dusted. we have palestinians fearing further annexation and i wonder if that does not entrench them and make them run from anything put out there.
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>> it is a test of something i have been saying for years. with a harder than making peace in the middle east is to find a way finally and forever to kill off the peace process. the only hope for israelis and palestinians against perpetual conflict, war, and all the cruelties and in humanities is to find a way to settle the problem. so we keep coming back to it and that is a dilemma but a dilemma and i don't see it it has been taken yet to a conclusion that it will never be any effort to make these and i am happy with that that they seem like a try and's -- triumph of hope over reality at this time but i'm convinced this will set things back for a long time. i have not the guts to declare this permanent.
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vonnie: does benjamin netanyahu have a debt to repay? is his position -- that did it -- position strengthened or does president donald trump have leverage over him now? >> i have not seen any more illusory explanation for this than that. here's the world's greatest negotiator, a real estate mogul who revels in his triumphs who is suddenly giving away to one of the parties in the world's toughest deal, the most important card he has in his hand currently, and the expectation that will produce some new is really gift to the palestinians in the future, how could we be so naive to believe that? vonnie: thank you for your time today. israel,ations, jordan, we hope you get to come back
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again. mark: time for a look at some of the biggest business stories in the news right now. holdings is in talks to buy british bookmaker. it could be as much as $5.2 million. online gambling platform such as party poker and -- anddn't mind following cvs tying up with a health insurer of its own. telling bloomberg the company does not rule out any kind of partnership. it rattled the health care takeover$67.5 billion of insurer aetna. expect moreays to cautiousness and the fed is likely to be careful about raising interest rates because the current environment leaves
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little room for error. that it tease coming up at 7:00 p.m. in london. that is the latest bloomberg business flash. vonnie: still ahead, ge passes power business, $12,000 -- jobs as it tries to make the units. ♪
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live in the city of london, i am mark artan. in new york, i am vonnie quinn. this is bloomberg markets. it is time for our talk of the hour. ge announced 12,000 jobs will be cut and its troubled power unit. meat on the bones of what they were talking about.
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at that time, they talked about a big turnaround. one piece is to help out that power unit. it is about 30% of the unit and a big problem for ge. cuty, saying they will 12,000 jobs from the unit, about 16% of the overall jobs on the it also allows them to focus perhaps more on the park part of the power unit and about 64% is within the power unit and the other 6% is the equipment which is64% sagging. the aftermarket and the park -- may harm a -- high markets. .e could generate turnaround >> what about the facts that some of these jobs, they are not
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domestic jobs? >> there are unions protecting the jobs abroad. it could take some time. another -- another so this could be what is announced next. what else could the companies due to flesh out the overall plan and one piece that could be jobs from a corporate perspective, the carry a lot of fat from corporate. and theyer than peers targeted 12% and right now around 14%. it would be a quick fix and they talked about selling $20 billion in assets. many say that is just not enough. ceothing we do know, the turned around the health care business and is very methodical by all accounts. he is likely making these big announcements that certainly these 12,000 job cuts --
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vonnie: sorry, that is not relevant. we'll get back to that in another session. ge moves to cut jobs in its business. a total 300,000 employees at the end of last year. power was the company's's division with sales at $27 billion. job cuts around the world including the u.k. and germany. joining me now is a senior analyst for bloomberg intelligence. willis fix the problem? >> it is a step in the right direction and gives numbers to work with. you have other problems but this is the biggest in terms of operating businesses. i am pleased. i do think it is big enough in gives us something after disappointment on the
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13th, that they did not give us enough, it helps. jonathan: other bits of the strategy? >> there have to be more cost cuts and i think the next wave will come out of corporate. they are looking at it now. they have time constraints on it. action afterake an july of 2019. if they do anything before that, they have to be ok with the baker hughes ge board. that is what they are looking at right now and then they will paring some assets within businesses but they have not give us any color on that. mark: a big decline on the doubt, by 22%, the expectation is for the stock to rise for
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$21, and upside of 17%. a big thumbs up from the analyst community or are there still major doubts? is still a lot of skepticism. and evidence like this will help build the confidence. it is a show me kind of stock at this point after disappointment and not enough action announced. build belief in the plan and that the plan is big enough to matter. it will not happen in the fourth quarter, where they start to beat what are very low expectations. and then you start to see some action. businesses make over 80% of the earnings. they have transportation business and locomotives, it is a good business though it is
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also depressed. businesses folded and some of the smaller businesses. $20 billion is not a lot of assets. on a standalone basis, transportation is the biggest thing. vonnie: thanks to our senior analyst for bloomberg intelligence. mark: coming up here, you know what it is. we're following stocks. hire today, 33 minutes until the end of the session today. ♪
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♪ that 30 minutes left in the trading day in europe. from the city of london, i mark barton. vonnie: this is the european
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close on "bloomberg markets." ♪ mark: here are the top stories from the bloomberg and around the world. the clock is ticking for theresa may. she needs to come up with concessions quickly before next week's eu summit. the irish government said it's willing to help avoid a standoff. are you getting ready for the start of another bull run of u.s. dollar? speak with david bloom who says it could be a shift underway. coming up, and exposes interview with the chief executive of moelis company. by the tax overhaul could dramatically reshape the outlook of the united states.


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