would have liked. while correct in asserting the is notnt himself necessarily writing line for line tax policy and legislation, , a pitchir top seller man, so to speak, for the policy and republicans heading into which will clearly be a referendum on his ability. eclipsedre has so far them. if they cannot get tax reform thisor something past, would be perhaps a devastating 0-2 record heading into the midterms. audience -- while we're waiting, to what do we see a bipartisan outreach for the president here?

,e're talking about the unity the risk is they will alienate some republicans. to what extent does he make an to print -- try and bring democrats in case they need them at some point in the future? >> i think what you will hear from the president is him say that democrats should get on board. those are just words. when you look at what is coming out of democrats, you heard this on bloomberg television earlier today, there is not much you can see from them in order to get on board in terms of policy. or two,ght be a line but altogether, this is smart.

>> how they have come together for the new tax framework. -- onent trump on stage stage in indianapolis with his tax. let's listen. [applause] pres. trump: thank you very much. you just want massive tax cuts. that is the only reason that you are going so wild. it is wonderful to be back in the great weight of indiana. what a place. [applause] pres. trump: i want to thank senator todd young, senator joe donnelly, representative jackie

larson, representative brooks, and representative mike for joining us today. thank you very much. we appreciate it. thank members of the economic team. secretary mnuchin. our hearts and prayers go out to andpeople in puerto rico the virgin and the virgin islands who are suffering in the wake of yet another catastrophic hurricane. we're working with local partners to help these communities get back on their feet as soon as possible. texas, florida, louisiana, are doing great. the recovery process is happening very quickly. i will go down to puerto rico a briefingo get

about disaster recovery and see our great first response or debt responders and meet a lot of the people affected. we are you now i tell them. and we will be there every step of the way until the job is done. it is truly catastrophic what happened in puerto rico. [applause] massive amounts of water, food, and supplies are being delivered on an hourly basis. it is something no one has ever seen before, i can tell you that . i am proud of all of the folks who have worked so hard, all of our first responders and the police because the police force has been so badly affected and haveof the police people

lost their homes. it has been a tough go but we will get it back. before we go on to discuss the largest tax cut in our country's history, i want to also provide a brief update on health care. we have the votes on graham cassidy but with the rules of reconciliation, we are up against a deadline of friday, that is just two days, and yes vote, we have a wonderful senator, a great senator, who was a yes vote. it tough situation. so make great features including all of the block etc., our health care plan is really going to be

something better managed for the people it serves. having local health care representatives is far better than having health care managed from washington, d.c. [applause] you have agreed with us and approved it. the window is about to close. we have to wait a few months before we take a vote. of the good science to alaska and repeal and replace obamacare. i was hoping this will be put on my desk after we won the election and i come in and sign but it did not work that way and a couple of people, i will not early nextg, or year, when reconciliation kicks back in, while before the

november election, we will have a vote and we will be able to and they thinkh we will get that through easily. speaking of reconciliation, the republican senate needs to get rid of the filibuster rule, which is blocking so many great legislative reforms. that the american people badly want and deserve. had thecrats opportunity, which hopefully they won't for many years, they would get rid of it on day one. most of you know exactly what i'm talking about. really -- relief to the american people. [applause]

this is a once in a makes the tax code simpler and more fair and will bring back the jobs and the wealth that have left our country and most people thought leftover country for good. we want tax reform that is progrowth, pro-jobs, profamily, and yes, tax reform that is pro-american. [applause] is time to take care of our and to fight for our

great american workers. [applause] it is a tremendous example of the prosperity unleashed and cut taxes and set the dreams -- it has placed a powerful competitive edge based on low taxes and less regulation and are we cutting regulation. businesses all across the country in recent years, indiana has welcomed dozens of countries anding time that high taxes high tax states. thousands of new jobs and massive capital investment followed, meaning a better quality of life for the people of indiana. becausehis is possible

the people of this state have made a decision. they chose to make indiana competitive again. important, it so included a letting a governor who signed the largest income tax cut in the state history, persony trip -- terrific and vice president, mike spence -- mike pence. [applause] it is time for washington to learn from the wisdom of indiana. instead of obstructing them. that is what i have been working to achieve every day.

that is what tough about on the campaign trail. it finally put america first. [applause] lowployment is at a 16 year . unemployment for african-americans is near its turn ofoint since the the millennium. it is really a fantastic thing. wages are rising, optimism among manufacturers has reached all-time highs. reachedth last quarter three percent way ahead of schedule. no one thought though it happen for a long time. [applause]

this quarter, i believe, would have been better. the hurricanes had an impact. other than that, it would have been -- your government is working for you, once again, not for the donors and special interests, but hard-working taxpayers of the country. [applause] pres. trump: america's back on the right track and i see so many people with red, make america great again is what we're doing. [applause] pres. trump: our country and our economy cannot take off like they should. we dramatically reform america's outdated, complex, and extremely burdensome tax code. it is a relic. got to change it. othere to compete with

countries. the current taxes, a colossal barrier standing in the way of economic comeback. we will remove that to create taxes at -- that we finally want to -- want and deserve. my administration is working to develop a framework. it would produce legislation for more jobs, higher pay, and lower taxes for middle-class families for the working man and woman and for businesses of all sizes. [applause] pres. trump: i look forward to working with congress to deliver historic tax cuts and reforms to

the american people. the tax cuts are significant. our framework was based on four key ideas. first, we will cut taxes for the every day hard-working americans for the people who work so long and so hard, that they would be forgotten. i think we prove that on november 8. [applause] pres. trump: under this framework, the first $12,000 of income earned by a single individual will be tax-free. a married couple won't pay a dime and taxes on the first $34,000 of income.

a married couple up to $24,000 can spend their money on their family come on their children, on what they have to do. so much better. in other words, more income for more people will be taxed at a rate of zero. [applause] pres. trump: at this 0% rate, it would be 12%, 25%, and 35%. jonathanjonathan and his wife, , -- green town,

under our tax plan, they would $1000, it could be substantially more, and that is just on federal taxes. would have saved at least $1000 and middle income families will save even more money with an increased child tax -- child tax credit for children under the age of 17, which so many families have been -- we will eliminate the marriage penalty in the existing credit and expand eligibility to even more middle income families. greatly expanded. we are also expanding the child tax credit because we believe the most important investment -- country [applause] pres. trump: this is just one more critical way we are

targeting relief. to working families. in addition to the framework, those caring for the elderly loved and we loved these people. we are caring and we take such care of the elderly and other adult dependents will receive financial relief in the form of a $500 tax credit. [applause] pres. trump: we're doing every thing we can to reduce the tax --den on you and your family the working men and women, not the highest income earners. our framework includes the

explicit commitment to tax reform will affect middle income households, not the wealthy and well-connected. they can call me all they want. i'm doing the right thing and it is not good for me, believe me. [applause] pres. trump: what is good for me not only as president, what is good for me is everything takes off like a rocket ship like it should have for 20 years. that is good for me. that is what i think will happen. people feel wealthy the same way. eliminating deductions that primarily benefit taxpayers.

congress has the flexibility to add an additional top rate on the very highest income earners to provide even more -- finally. americans waste money. [applause] pres. trump: americans waste so much money. billions and billions of dollars and many hours each year to comply with the ridiculously complex tax code. more than 90% of the tax code is to prepare taxes. the vast majority of families on a single sheet of paper. [applause] pres. trump: we are also

repealing the alternative minimum tax. about time. it is a shadow tax system that requires many people to calculate their taxes two theerent ways and pay higher of the two amounts. you are all familiar with it. amt will make even less sense under our framework because we are repealing many of the special interest tax breaks it was designed to deal with. we are making our taxes simple again. we are simplifying our tax system. to protect millions of small businesses and the american are finally ending the crushing, the horrible, the or, as ite state tax, is often referred to, the death tacked -- death tax. [applause]

pres. trump: that means especially for all of you with small businesses that are really tremendous businesses, you will be able to leave them to your family and your family will not do a firen out and sale to try and get the money to pay the tax, lose the business, ends up going out of business, all of those jobs are lost, the farmers in particular are affected, to have wonderful farms but they cannot pay the tax, so they have to sell the farm, the people who buy it do not run it with love and they have to buy it the same way and it has to go out. the death tax is a disaster for the country and a disaster for so many and we are getting rid of it.

[applause] pres. trump: if you don't like your family, it won't matter. for those who love your family, it matters a lot. with us today is a family farmer from leesburg. hi, kip. who fears that his family's farming heritage, it has been a long time. how long? 187 years. that is peanuts. that is a long time. heritage could come to an end because of the death or estate tax. it could make it impossible for him to pass the legacy to his wonderful family. we will not let that happen. taxill not allow the death

to steal away the american dream from these great families. many of which are in the room. [applause] we will protect our farmers, our ranchers, and our we will make and taxes simple, easy, and fair for all americans. [applause] third, we will cut taxes on american businesses to restore our competitive edge and create more jobs for american workers. [applause] in indiana, you have seen first hand cutting taxes and businesses have made the stator competitive and leads to more jobs and higher paychecks for your workers.

we now want to do the same thing for america, making our country more competitive with other nations. in many cases, those nations are taking advantage of us in so many ways. they say they are friends, and perhaps they are. believe me, i am renegotiating on trade deals. including nafta and many others. through regulation, all we have to do is look at the massive access, itdakota immediately approve so we're letting that happen. terms of the tax strategy that ronald reagan used to create an economic boom, in the 1980's, when our economy took off, the middle-class thrived in the family income of all

families was increasing more and beautiful sight to behold. since then, other nations have adopted, unfortunately, our playbook. and ran it even better than we did. we did not run it well at all and we let other nations come take advantage of us and take our jobs away and take our business is out and we are stopping that and you see it right here what we have done. today, the total business tax rate is 60% higher than the average foreign competitor in the developed world. that is not good. theave surrendered competitive edge to other countries but we are not surrendering anymore. under our framework, we will dramatically cut the business so that americans -- american workers beat our foreign

competitors and started winning again. [applause] pres. trump: we will reduce the corporate tax rate to no higher than 20%. that is way down from 35% and 39%. which is substantially below the average of other industrialized nations. this is a revolutionary change and the biggest winners will be the everyday american workers as jobs start pouring into our country, as countries start competing for american labor, and as wages start going up at levels that you have not seen in many years. [applause] when our company move to other

countries, it is our loyal american workers who get hurt and one countries stay in america and come to america, it is our wonderful workers who reap the rewards. i just left the united nations last week and was told by one of the most powerful leaders of the world that they will be announcing -- announcing in the not-too-distant future five major factor -- factors in the united states between -- you will be hearing about that very soon. i said thank you very much and he said, you know what, it is starting to happen in the united states. it is starting to happen. i just wanted to let you know that. i just promised i would not say who. i will keep my word, ok? unless you force me. parties -- ith

happens to be the automobile industry -- should of both parties agree we need a tax code that keeps jobs in our country and brings jobs back to our country. [applause] pres. trump: for the millions of small businesses and farms who taxes, corporations or partnerships, we will cap the tax rate they pay at[applause] to give businesses

even more reason to boost investment in america, for the next five years, our framework that is called incentive. that is called incentive. [applause] pres. trump: this'll be tremendously important to help americans afford to have three machinery and capital investments they need to grow big and grow strong. gannon us today is john come up the owner of a home fencing, wood and the deck company in indianapolis. of ninethe father

children and recently celebrated his 35th wedding anniversary. congratulations, john. john is in the fencing company, as you heard. i am just thinking, i have to mention this. we have a fence around the white house. we have a fence around the white house. and they want to build a new fence. i was thinking, maybe $1 million, maybe $1.5 million. this is been taking place over a of time, previous administrations. i said, how much were you thinking for the white house? sir, defensible fence will cost approximately $50 million. what?

i kid you not. we have thousands of things like that. never understand it. we are working on it. john says that a tax cut like we are proposing will make his business more competitive, allowing him to expand, hire more workers, and raise wages for his current employees. also with us is aaron williams, a father of two who works in the field of information technology. where is aaron? hello, aaron, hi. it is a good field. aaron has seen the disastrous effects of high corporate tax

rates, right up close and personal, as more and more high-tech jobs are shipped overseas. you have been watching it all over. like many other americans, aaron wants to bring those jobs back to the united states. we are going to reduce the tax rate on american businesses so they can keep the jobs in america, aaron. create jobs in america, compete for workers in america, and raise wages right here in america. you are going to be in a much different position, ok? tremendous incentives. products proudly stamped with those four beautiful words, "made in the usa." right? made in the usa.

finally, our framework encourages american companies to bring back the trillions and trillions of dollars in wealth that is parked overseas. our current tax system -- trillions. for years i have been hearing it is $2.5 trillion. i have been hearing this for years, so i assume it is more. democrats want to do it and republicans, for years. who does not want to do it? but they cannot do it because it is so restrictive and taxes are so ridiculous, so the money stays in other countries and it is invested in other countries. we want to bring it back. it is one of the few things democrats wanted and republicans wanted. want it, butted -- now we are doing things. [applause] pres. trump: it is one thing when we wanted health care and

they wanted health care, and there is a dispute. dispute. there is a broken system in d.c., but we are getting it fixed rather rapidly. you will see that over the next few months. our current tax system makes us one of the few developed countries that punish companies when they bring wealth overseas back into the country. we are punishing them from bringing -- for bringing money back in. --a result, they have met many trillions of dollars in foreign countries, avoiding our punitive tax system altogether. some companies actually leave our country because they have so much money overseas, so much, it is an incredible amount, that they move the company to get their money. we are going to let them bring the money back home. [applause]

our framework will stop punishing companies for keeping their headquarters in the united states. we are punishing companies under our codes for being in the united states. time lowmpose a one tax on returning money that is already offshore, so it can be brought back home to america, where it belongs, and where it can be put to work, and work, and work. [applause] the framework i have just described represents a once in a generation opportunity to reduce taxes, rebuild our economy, and restore america's competitive edge, finally. [applause]

pres. trump: and i have to say, just before coming here, we released some of the details of the tax and the tax reform and the tax cuts. and it is really received tremendous, tremendous reviews. if senator donnelly does not approve it -- because you know, he is on the other side -- we will come here and campaign against him like you would not believe. [applause] pres. trump: i think they are going to approve. we will have the numerous democrats, because it is the right thing to do. these reforms be a dramatic change from the failed tax system that encourages american businesses to ship jobs to foreign countries, that have much lower tax rates, which we cannot do.

our competitors have much lower tax rates. but, no longer. my administration strongly rejects this offshore remodel. we have embraced the new model. it is called "the american model." under the american model, we are reducing burdens on our businesses, as long as they do business in our country. that is what we want. we want them to do business in our country, not to leave our country, like a number of firms from indiana. some made some great promises to me, but those promises are only being harshly kept, because they are incentivized to leave. but now they will be incentivized to stay.

if that does not work, we will get even tougher than that, ok? we want our countries to hire and grow in americaif that does. here.t it to happen tax reform has not historically been a partisan issue. it does not have to be a partisan issue today. i really believe we are going to have numerous democrats come over and sign because it is the right thing to do. i believe that it is the right thing to do. i know many of them. they are telling me, it is the right thing to do. president reagan's tax cuts were passed with significant bipartisan majorities at a time

then -- when there was a democrat majority in the house and a democrat speaker. before that, democrat president john f. kennedy championed tax cuts that surged the economy and massively reduced unemployment. as president kennedy very wisely said, the single most important fiscal weapon available to strengthen the national economy, is the federal tax policy. the right kind of tax cut at the right time -- at the right time -- this is the right time -- is the most effective measure that this government could take to oure our economy -- to spur economy forward. that was president kennedy. [applause] pres. trump: my fellow americans, this is the right tax cut, and this is the right time.

democrats and republicans in congress should come together, finally, to deliver this giant win for the american people, and miracle, it-class is called a middle-class miracle, once again. it is also called a miracle for our great companies. a miracle for the middle class, for the working person. i truly believe that many democrats want to support our plan. and with enough encouragement from the american people, they will find the courage to do what is right for our rate country. -- great country. that they will only do it if people, makeican

your voices heard. only if you tell congress to give us a tax code people, make your voices earth more awesome than the will of the american people. that is why today i am asking all americans, republicans, democrats, independents, to join with me and with each other, to demand tax reform that will truly, truly, truly make america great again. [applause] pres. trump: call your congressman, call your senators, let them know you are watching. let them know you are waiting.

tell them that today is the day for decisions, that now is the time to heal this self-inflicted economictell them that today isy for now, our children and grandchildren will remember this moment in history as the time when ordinary americans took control of their destiny, and chose a future of american patriotism, prosperity, and pride. [applause] pres. trump: with your help and your voice, we will bring back our jobs, we will bring back our

wealth, and for every citizen , we will bringd back our great american dreams. you, and, god bless god bless the united states of america. [applause] ♪ julia: that was a calm and confident donald trump, president trump speaking about the ministration's hopes for tax reform. a call to action for the american public, please you have to push for what he called a miracle for the middle class. he brought everything back the jobs, using various examples of people that would benefit as a result of the changes to the tax framework, compared to what they are paying, in terms of taxes now. he said the tax plan is not good for me, there will be a credit for elderly care, $500.

one of the very few numbers he brought out here. he talked about simplifying the code. he says at this moment that we will have a one time low tax on returning money. even whenhe says at this momente kevin, you could have seen that speech ahead of time, given the comments you made. at what he said about the democrats, it is the right time, they should be on board with this. and we will look now to working together. what do you make of that? then: one source within this community here in washington said they particularly liked that the president himself had essentially created a red line

on the corporate tax rate. the business community was thrilled when they hurt that president trump wanted to halve this at 50% of the rate. but now they are saying they are confident the 20% red line, the president saying he is not willing to negotiate beyond that, is something that they can get behind. in his speech, the president very much pushing back against democratic criticism, statements from democrats piling interrupt the speech, saying it is little more than tax rates and tax cuts for the wealthy at the expense of middle and low-income americans. the president saying that is not the case, pushing back against that, and framing this as a once in a generation opportunity to unleash american growth. scarlet: if you look at the congressional calendar, it is fairly compressed. especially if the president wants to get this done by the end of the year. once they are ready to get

moving with the mechanics of this tax reform, who would the bill start with? is it a certain house in the senate? is there a chance the democrats -- forget it, i will not go there. laura: it has to start in the house. it will go to a committee, and then the floor to the boat. then the same process in the senate. they have to have a conference committee, and that could take weeks or months. in 1986, the last time they did this, it was several weeks. they have to have every card fall in the right place to get this done by the end of the year. laura davidson, think you so much, and kevin cirilli from capitol hill. julia: our next guest things the president -- thinks the president's plan will help the economy and create thousands of new jobs. joining us now is grover norquist. great to have you on the show, thank you. what do you think will be the

turbocharge the economy needs as a result of this plan? are you worried we do not have a way to finance it? droppinghree things, the corporate rate from 35% to 20% makes us competitive with most of the rest of the world. 15% would have been better. but i met today with vice president pence. he reiterated, 20%, not going higher. 20%, red line on 20% for the top corporate rate. of huge increase in the after-tax cash flow for every american company. added that the for the first time since 1931, we have dramatic reduction in the tax subchapter for certain corporations. there are 30 million different small businesses that are subchapter, partnerships, sole proprietorships, they will all

see a top rate not of the 40%, but of 25%. that is 30 million small businesses that can hire, invest, and have more after tax cuts. add to that that they have a full business expensing for five years. they say that is temporary to make it fit in the box. i do not believe for a second that the american business community and american workers will ever allow full business expensing, which means you expense factory equipment the year you buy it, not over 10, 20 or 30 years. it dramatically reduces the cost of capital for new business investment. it will attract capital from all over the world, and out into manufacturing and other companies that do this type of investment. i think it will be very, very powerful and will be permanent. there are the straight tax cuts

for middle income people. all individual rates come down. the bottom rate of 10% goes to zero. zero, told percent, 25%, and 35% for individuals. they will double the standard eduction, which means money in year insteado, told percent, 2a of 2% a year, you add about

agree on a budget resolution. but there are so many hurdles there. they want military spending increases, perhaps issues around planned parenthood and many other issues. what are the issues and what does that look like? i think it will happen rather quickly. mark meadows, who runs the freedom caucus, the 30 or so conservative republicans who have sunk legislation before because it was not perfect -- i saw him last night at the dinner where he spoke. he made it very clear he understands the budget package they put together is just the

vehicle for the tax cut. it does not commit us to any spending over the next 10 years. here is what it looks like will happen. here is the room we have for tax cuts. then we can see the tax reduction, tax reform package. people get that they are not actually writing the next 10 years budget when they pass that. they are just crating the vehicle for tax reform. members get that, this becomes very easy to do very quickly. because you're not arguing about policy, you are just setting up the vote. it will be a lot easier if he gets democrats onboard. he made the point he believes there will be democrats signing because it is the right thing to do. what is he offering them that would get them over to his side? grover: the possibility of not losing the election in 2018. about 10 democrats in the senate could easily lose an election.

if you are from north dakota and have a history of voting against the interest of fracking and energy in the new businesses, you might want to do something progrowth and pro-jobs once in your career. ditto west virginia and indiana. the reason democrats voted for reagan's tax cuts, they did not want to lose the next election because they had a lousy economy under carter. we had a lousy economy under obama. democrats voted with the reagan tax cut. you may see some, at the end of the day, it will not be the democrat vote to put you over 51. we will not give them anything, there is no trade to be made. but it is possible someone jump on that in an effort to avoid losing the next election. abigail: interesting insight, grover. thank you. turning now to another crisis,

hurricane maria has cost billions of dollars in damage in puerto rico. virtually the entire island is still without power. their power authority is getting a lifeline, a $1 billion loan, and an influx of capital. tomof those investors, wagner, spoke exclusively with bloomberg earlier today. our thoughts definitely remain with the people in puerto rico, suffering through a pretty extraordinary tragedy. what we have seen in the early reporting from the hurricane damage is that there is a significant need for immediate restoration of the electric grid. that requires not just a lot of manpower, but an incredible amount of capital. we put a proposal to provide utility with $1 billion in new 4.5% interest rate. billion is alongside existing debt they gets rolled into the facility, but only

receives $850 million back. there is a $150 million cancellation of debt that can be used to defray interest costs, the period we -- expect them to remain. we are not requiring principal repayment during their restructuring process. we would allow the debt to become twenty-year debt if they successfully organize over the next two years, which is more than enough time to reach that goal. we are providing no debt payments, some debt relief, and providing new capital that will not only help the utility pay for the immediate repairs and upgrades that need to be done, but also qualifying for cost-sharing under fema's hazard mitigation guidelines, which is important. that will unlock somewhere between $3 billion and $90 billion to use not only for

repairs to the grid, but upgrades, which is consistent with what we see in other utilities. >> how similar is this is to the proposal we saw that was not approved by the federal oversight board or government? what makes you optimistic this -- us thehrough circumstances we have seen over the past few weeks? >> great question. this is a different transaction. existingto resolve the debt issues they were facing and require different elements to accomplish. it was a complicated deal. deals that were previously approved, and a third that was unfortunately not accepted. a mechanism toe, allow a sizable amount of capital, $1 billion, to come in immediately. we have stood by this proposal, willing to provide the money immediately. it is not requiring that we resolve the existing debt issues. prepa will remain in bankruptcy,

structured as a veteran financing, really the only way of financing a company that is in bankruptcy. funds doly, these qualify under the fema guidelines, which is really the critical element. the combination of private capital with public market capital will achieve complete transformation of the utility, so you have an entirely different looking system going forward, much more efficient. >> help us understand the history and how dire of the situation prepa is in. >> it is very serious, the entire island is without power. the governor and officials are scrambling to get everything up and running. you have hospitals and nursing homes and senior centers running on generators. that is unsustainable. then you have the question of how much diesel fuel is on the island to sustain these generators and keep them going. that is a huge issue.

this is the immediate concern for the island. after rescuing people from flooding waters -- they need to make the grid stronger, so that in the future, the island can withstand these types of storms. this will not be the first storm and hurricane to hit puerto rico. abigail: that was tom wagner, founder of knighthead capital management. scarlet: breaking news from the fcc, it dismissed a case against a patriarch founder, often known as the diva of distress. she was fighting and in ministry and of complaint from the fcc that accused her of misleading investors about the risk of corporate loans. against lynnc case tilton has been dismissed. julia: we speak to muhammad yunus about why he thinks we can

have a world without poverty. this is bloomberg. ♪

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news. calling it a once in a generation opportunity, president trump this afternoon unveiled his plan to overhaul the u.s. tax system. indianapolis, the president insisted the wealthy would not be the only beneficiaries of this plan. pres. trump: we are to cut taxes for the middle class, make the tax code simpler and more fair for every day americans, and we are going to bring back the jobs and wealth that have left our that most people thought left our country for good. mark: the plan would cut the corporate tax rate from 35% to 20%.

for individuals, the tax brackets would beach will percent, 25%, and 35%. an international chemical weapons watchdog is commending russia for destroying its artillery of deadly gas stockpiled during the cold war era. they reported the distraction of all remaining projectiles to russian president vladimir putin today. decades has spanned two and cost russia an estimated $5 billion. facebook is apparently learning from mistakes it made in its battle against fake news. the social media network was criticized for failing to stop the rise of fake news during the u.s. presidential election. germans weekend's elections it pulled out all the stops, deleting tens of thousands of fake accounts. it also successfully tested new features designed to filter out potential fake news. pope francis shook hands and posed for selfies with migrants after announcing a new campaign

to promote the plight of those forced from their home countries. the pontiff is hoping to counteract growing anti-immigrant sentiment in the u.s. and europe. he says people should not be afraid to open their arms to migrants. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ some breaking news regarding softbank and uber overcoming a major obstacle, they have agreed to block any attempt by the company to elevate travis kalanick, the former ceo of uber, back to the company's's top ranks. remember, he is still on the board. the question would be, is there a back route to bringing him in as ceo in the future. softbank agreeing they will block any attempt. that is the key point for venture capital firm benchmark, the entity that led the ouster

of kalanick back in june. they have a guarantee from softbank they will prevent a return of kalanick in the future. scarlet: a situation we will continue to monitor. "what'd you miss?" economist muhammad yunus says reformed capitalism can help poverty and the planet. he is a nobel peace prize winner. 's influence has touched the richest investors, including ray dalio, who has fresh concerns about the can -- income inequality. >> they printed a lot of money, interest rates went to zero, and we had a large wealth gap and created populism. scarlet: dalio said he would donate all the proceeds from his book. muhammad yunus joins us here in studio. he is the author of a new book, the new economics of zero poverty. thank you for joining us today. muhammad: thank you.

scarlet: we talk about reforming capitalism as to replacing capitalism. explain what that is and how it enterprise where profit is not the only goal? the presence capitalist system, the machine that supports money all the way few people are owning more and more wealth. eight people in the whole world owning more wealth than the rest. we need to do something about it. slow-motionst a presentation, it is fast moving. unless we do that, it will be a ticking time bomb, creating social and political unrest and lots of social upheavals. it is one way of saying that maybe we should change the whole idea, the basic premise of the

system, that all human beings are driven by self-interest. that gives the wrong impression. human beings are not about selfishness. they are also about selflessness. as we build on a selfishness basis, we have a need to solve problems and selflessness. scarlet: you write in your book that the freedom from profit-seeking helps make social businesses viable, even in circumstances where current capitalist markets fail, where the rate of return is high. free from the need to provide new streams of donor funding. how is this different from a state-owned enterprise in china which can pursue social and not make a huge amount of money? is this an old idea? mixing socialare and profit already. what i am doing is taking it to the extreme.

do not get involved in profit at all. when you delete from the profit idea, your eyes see a different way of doing things. you concentrated only on solving problems. companies can solve human problems, start solving problems in health care, poverty, housing, you name it, unemployment. all kinds of things possible. many big companies are supporting us and getting involved with us, like unit low -- uinqlo. glo.ni exclusively -- you see opportunities which you never saw with dollar signs. you see social opportunities

that help people to solve their problems. julia: a critical would say that a social business would be overwhelmed. the only way of achieving this is to have the offshoots from bigger businesses that are ultimately profit maximizers. witty find the balance? -- where do you find the balance? in what: if you believe i started out saying, human beings are not all about often making -- profit making. they are selfish people, but at the same time, selfless people. we want to do things. it doesthing is wrong, not have a place. money is happiness, but making other people money is also happy. use an example of the

sharing economy and uber and the governance issues we have seen their. i think of myself as someone that is socially aware. there is always the conflict between wanting to do -- be a better person and that utility value of doing something. i think that flies in the face of the concept. muhammad: this is one side of the business. but uber is making money, a different concept of making money. i am not getting involved with that. you can create a business where you do not want to make money. you want to create a business to employ -- the whole purpose. people, andoy young it is done. we want to create a business where [indiscernible] the opportunity to start a new life. julia: for charity? muhammad: it takes you in a

different direction. abigail: at the end of the day, are your ideas utopian, and his utopia possible? all over is happening the world, including in new york city. i visited one restaurant i did not know existed. they created a social business restaurant. it is beautiful. they do not want to make money, whatever profit they make is for their people. all the people working at the restaurant are ex-president's. -prisoners.e ex [indiscernible] france is taking it very seriously. they set up a center in paris. whole companies are involved with it. germany got involved with social

business, long before. but france, in a big way. julia: fascinating concept, muhammad yunus "a world of three zeros, author of," and nobel peace prize winner. this is bloomberg. ♪

abigail: "what'd you miss?" emerging markets are having a better year than u.s. equities. well that performance continue? more than 17 years of experience on wall street, thank you so much for taking the time to join us. this is a big question, the msci em index of 25%, the best since

2009. let's look at a chart you prepared, and the question of whether this breakout is for real. >> this is a tenured chart of the msci emerging market index. ityou can see, you can call a long-term consolidation pattern, but i like to think of it, we have broken up downtrend to the upside. these are monthly bars. we broke to the upside. i take notice when i see something like that. lace, ar pattern in breakout to the upside, that is bullish. i look for confirmation. i checked out momentum. at 77. the fact it could get that overbought on a breakout from it tenured downtrend, that is extremely bullish to me. it is overbought, so i would not be surprised to see profit taking. but personally, i would use that

as an opportunity to test support to add long exposure to emerging markets. abigail: that is an interesting call. if we look at that break out in july when janet yellen spoke to congress, it seems her comments really brought out the em bulls. part of that is the dollar. you brought another chart that shows emerging market etf with the bloomberg dollar index. can you take us through this chart? the lessollows under words, more pictures category. we can see a clear downtrend in the blue line in the u.s. dollar index. the inverse correlation between the u.s. dollar index and the eem,ging market equity etf, the correlation is about 85%, the inverse correlation. to the extent you expected dollar weakness to continue, i would expect bullishness in the emerging market etf and emerging market index we just referenced.

i do expect dollar weakness to continue. we had a breakthrough -- breakdown in the index from the 90 level. i believe that will fail, the dollar will continue to lower. abigail: interesting. probably the biggest tailwind has been the fact we have seen ultra low rates out of the fed. i know we have another chart for you to take a look at that shows an emerging market debt index against the 10 year yield. can you talk about this one? the 10th -- steady decline of the 10 year yield in the u.s. represented by the orange or yellow line here. i am of the opinion the u.s. 10 year yield will test 10% to the downside. we came close, two weeks ago. i do think that test is still in play, to the extent you expect this correlation to hold, that would be bullish for emerging-market debt. i think it is a function of lower rates in the u.s..

investors, they are seeking the best return. presumably higher rates in the emerging markets. a testgoing to watch for of that 2% in the 10 year in the u.s. 10% of theit breaks downside, it could support 1.5. abigail: interesting. makes emerging markets pretty ideal. >> bullish. abigail: thank you so much. scarlet: we have breaking news. politico, google has been summoned by the intelligence senate committee in that russian probe. federal officials have concerns that kremlin-linked entities have tried to game google's algorithm for shaping search results of voters looking for political news and information leading up to the election. it is not clear whether google has fully agreed to the request to appear. the senate panel committee has summoned to google in its probe of russian ties to the u.s.

election. julia: an interesting story,, -- coming off the german election. republicans having flashbacks, and the establishment fever proves stronger than $10 million. we talk with a congressman who is no stranger to it. this is bloomberg. ♪

♪ julia: "what'd you miss?" in a generation opportunity for comprehensive tax reform. >> for all of us, this is a now or never moment. the choice before us is really clear. we can succumb to the talking heads on tv and this special interest that want to maintain the status quo, or we can work together to seize this moment

and do with the american people sent us here to do. julia: bigger of the house paul ryan has called for decisive action. there was a wall street editorial that there are 30 republicans that could stand in the way of tax reform. one of those congressman is with us, congressman david brat, who was also on the house freedom caucus. great to have you with us, sir. explain to us how you feel on the tax reform. the overall message is that you are on board. what happens to remain in order to keep you there? dave: we have been saying the same thing consistently. 's plan showstrump up as better, pushing rates even lower, we are on board. you just heard our speaker. --health care, the swampwon on health care, the swamp won

that one. at the end, we ended up with a skinny bill that was more of the new york, fifth avenue tagline, then a substantial policy. if we keep this tax package and play and the swamp does not overwhelm it, we are all on board. wewant to get the rates low, want economic growth, we want to increase wages. they have been flat to -- for 30 years. d.c. ise country knows, rigged and the middle class wants a break. we intend to give it to them. i think there is good news on the way. scarlet: you like what you have heard so far. mark meadows, who heads up the freedom caucus says, 20% corporate tax is a ceiling. the you have a redline? dave: i would not call it a redline. there are an infinite number of variables up against each other. there is a little flexibility.

but that 20% on the corporate rate is a mark or, we do not wanted inching up to 27%. that is the way the swamp wins. and you do not get the market saying, we have growth at hand. business investment was -1% this year. it will be 4%, positive, this year. that is predicated on us performing. if we do not deliver, that goes down, the markets go down, people let home at lose their wealth accumulated in savings, and that is no good. we need to have a progrowth economy. 20% is our saying, do not let the swamp takeover and get their special interest parks and write-offs and inductions. haveil: in the past you promised to vote against the debt ceiling for the first five years of your term. is that still true, and how does it play into how important you think tax reform is? dave: iran on fiscal issues,

first and foremost. it is very real. the problem was this year, some of us were willing to write a debt ceiling increase if there was a company with some fiscal sanity over the next 10 year window. i just went home to my kids, kindergarten kids are now in the class of 2030, graduating from social -- that is when security becomes bankrupt or insolvent. it is not some theoretical rd -- idea. they will grow up in a world where their entitlements are insolvent, if we do not get our act together. it is not about limiting debt right now just for some economic exercise. it will have a profound affect on the next generation of kids. everyone says they are pro-kids, but they are the only group without a lobbyist. everyone does. we roll all the pain onto them,

it is unexplainable, how we can do this generational theft with a clear conscience. julia: i wanted to talk about what was going on in alabama. clearly, a slap in the face for a candidate that was given the go-ahead by donald trump. a victory for someone promoted by steve bannon, it seems. what does that mean for the gop, what are your views? dave: if you look at the candidate who won, iran, taking ran, taking on d.c. and the swamp. ands backing one candidate the other candidate is talking about the 10 commandments and teaching our kids morality, which is missing from the public the voterse days --

goes, which do i like better? moore won by a landslide, that is what is missing. we have this nfl controversy and anxiety because wages have been flat for 30 years, and there is no moral discourse at all. we have moses, the only guy with his face looking forward. greatou have the other going around the whole congress. our kids in school are not taught any of this. they are taught to go to a safe space and identified. one kid now thinks he is a hippopotamus, and cute -- and we are going to have a lawsuit on that. julia: congressman, great to chat with you. david brat of the virginia. scarlet: what you need to know for tomorrow's trading day. from new york, this is bloomberg. ♪

scarlet: "what'd you miss?" s&p and nasdaq

getting close to another record. abigail: the u.s. supreme court returns, expected to issue a list of new cases it will be picking up in this session. julia: i will be looking at the bank of mexico announcing a rate decision at 2:00 p.m. tomorrow. abigail: can't believe it is earnings season again. jim chanosng note, will be joining "what'd you miss?" for a full hour tomorrow. do not miss this exclusive to sit down.

you are watching bloomberg technology. what's get a check of your forced that first word news. speaking indianapolis the president insisted the wealthy would not be the only

beneficiary. the tax code would be similar and more fair for everyday americans. this all comes as the tax rate goes from 35%. for individuals the tax bracket would be 12%. hasindividual that u.s. offered a first look at the prototype for the proposed order wall street crews working on two of the prototypes were filmed installing reinforced ours before his port. contractors have 30 days to finish. elaine duke admitted that there are challenges and distribution. she spoke after a barrage of criticism during the -- directed at the trump administration. placed a best of all coach on unpaid leave. this comes after a probe on recruiting corruption continues to unfol