him mark: as we have been working there is reporting, said republicans have released their vision for a plan that would cut the tax rate to 20%. provisions on the individual side including maintaining tax brackets. and preserving the existing mortgage deduction for home purchases of two $1 million in debt. mick mulvaney of the office of management and budget is optimistic about the prospects for tax reform. he's said congress is making .rogress comments came best and republicans prepared to release their vision for tax reform. >> we love it. we are having a great time. details,e we hear more are fundamental principles are still being that. saidcepts we set up that

the two things we are focused on , the middle cap -- middle-class give a tax cut, and it the corporate tax rate is as low as we can get it. >> senate finance will consider plan next week while the house bill will go to the floor for debate. consumer confidence in the u.s. stayed high. the consumer fund act -- stayed in afidence was ♪ range that is close to a 16 year high. talks have resumed. both sides are hoping to agreement by the end of the year. wants to get a deal quickly to move on to negotiations on trade. global news 24 hours a day powered by 2700 journalists and

analysts in 120 countries. this is bloomberg. julia: live from bloomberg headquarters in new york, i'm julia chesley. fu, -- i'm scarlet joe: i'm joe weisenthal. what'd you miss? meanwhile the house ways and means committee has advanced its tax plan. paid in high-yield and spreading after disappointing earnings, aakness and telecom justify rollback.

we will bring you the numbers and instant analysis. what'd you miss? and are to tax reform. the house ways and means committee passed a tax plan. senate republicans have failed their own overhaul of the tax from the t differences house bills. what should be a big day for senate republicans is becoming overshadowed by controversy. let's go to capitol hill where we have the latest. let's talk policy. i'm looking at the differences between the senate version versus the house. the only area i can he where they correspond is doubling the standard deduction. issues is one of the

they have similarities. restores thel adoption tax credit they contemplated taking out. there are a number of differences. the top rate is 38.5%. the house bill does not eliminate state and local deduction entirely. it keeps the deduction to appease members from new york and new jersey. the biggest one is a corporate tax rate taking effect. that goes against what president trump and republican leaders had said in terms of wanting the corporate tax cut to happen immediately. obviously are differences between the house and senate bill but this is standard legislative process. when you look at the two bills, do they seem wide apart or is

differences? >> there are always differences. in theory they can combine these differences can combine one. the question is, how big the margins are. in the senate the bill does not repeal the estate tax. that is something house republicans feel strongly about. that is something they don't want to do. can you craft a bill that can have -- passed both chambers? the senate has yet to pass this bill. we are seeing the house ways and means committee talking up their bill because they had advanced it. let me go back to the

differences. to what extent does that matter given that it is likely they will be voting on the senate version, that will more likely happen to the presidents desk? >> so far as we know, the senate bill may not necessarily be compliant with senate rules. any tax cut that is permanent must pay for itself after the 10th year in the budget window. we have not seen enough to know that it does. by all indications it probably does not. not an abundance of revenue raisers. if the house passes this bill as kevin mccarthy says them of they will vote on it next week. it is dead on arrival. about royk to us moore and the responses we have seen from capitol hill.

senator mccain saying that roy moore needs to step aside. we are only looking at allegations against him rather than anything more specific. talk us through what has been happening. >> this is an extraordinary revolution -- revelation when senators wanted to be talking about their bill. moore ise -- roy ofused by 4 women approaching them when they were under age for sexual encounters. a norm amongng senate republicans. john mccain said he should step aside. mitchpublican senator -- mcconnell has said that if these allegations are true the needs to step aside. where we go from here is

unclear. alabama has a law that prevents luther strange from running again. it is being nicknamed the sore loser law. who would run in that place remains to be seen. this is bad news for republicans. this could be a game changer for them. thank you. coming up, it is not just stocks being affected by tax reform, you have credit markets. this is bloomberg. ♪

scarlet: not only has the back

and forth over tax reform affected stocks, they are hitting the credit markets which adds to bad news that has triggered selloffs in big speculative grade borrowers. discuss, mark, great to speak with you. credit markets have come under pressure. there are a number of explanations. which makes the most since to you? both.is a combination of going before earnings season we had seen a pickup and idiosyncratic risk, significant pressure in retail and supermarkets, and pharmaceutical sectors. that has been offset by strengthen technology and consumer sectors. i think the discussion now as we go through earnings is going to

focus on taxes. clearly the tax package will create winners and losers in the credit market. joe: every time we have one of the selloffs i feel we have the same debate about whether this areaout some idiosyncratic of the market or someone -- something more macro. it was about oil. this time focus on the telecom names. is that a false dichotomy in your view or is that the right way to think about it? >> we have been reducing risk all year long and sylvain saxophone have success is not just a on the credit markets indirectly. there has been this reach for yield. it is no longer a green light for credit markets. clearly there are some companies with decent fundamentals but there is a lot of sectors under pressure. see that in earnings releases

coming out. feel like for weeks people have been coming on the show and saying, high-yield, before the united states risk reward is a good. it is now on a fundamental basis. he spreads are too tight. to what extent would you need to see spreads give some ground before you say there is value here? >> it is not solely about valuations. fundamentals and technicals matter. fundamentally we have been in an environment where the economy has been doing pretty well. global earnings are picking up. technicals have been supportive for markets. supply and demand for income in the world's. there is a robust demand for

income but, i think the market has gotten ahead of itself in terms of valuations. we have been reducing risk. the markets are set up for more volatility going forward. part of that is going through tax reform but we are seeing idiosyncratic risk in markets such as saudi arabia. it is important to size bottom-up -- and we would be more cautious overall. you mentioned these wider spreads create higher volatility. that does create opportunities. if you look around, where are those opportunities? iswe would see the trend towards moderately higher interest rate. the fed will be gradually normalizing. financials should do

well. we think we are going to get a tax package delayed until the first quarter. we will see lower corporate taxes, and the big beneficiary will be the higher taxed companies. telecom could be a big beneficiary. benefit, higher net worth individuals have lower propensity to consume than the middle class. consumer sensitive sectors should do well, such as the gaming sector. we will see more people continue to take trips. joe: in the tax reform bill one of the stories people told was these companies have the cash parked overseas and that is going to solve that. some --ails may not be

so ideal. some of these companies paying more in spreads, perhaps react to that realization. our -- our their details and that affect the market in your view? >> it could, ultimately. it depends on what ultimately comes out. basically, those earnings can be brought back into the u.s.. but i actually think what is going on now in the credit markets, companies are realizing the probability of this tax package going through has picked up from 50% to 60, 65%. i think they are issuing these lower rate levels. if this tax package goes through we have been trending that 2%

real growth. i am not suggesting we are going to trend to three but we could be trending to 2.5. the forward curve is only pricing in to fed hikes over the next year. the fed could have to go more aggressive. >> you are talking about a joe that is woeful in my mind. the risk that an ultimate tightening offsets the fiscal stimulus that we get from the government? >> excellent point. there is a clear risk of that. equity markets are pretty high. going on inething

terms of foreign support for bond markets. that is going to increase the hedging costs for foreign buying of u.s. bond. the two biggest supporters for government bond markets has been central banks and foreign buying. for a japaneset investor has gone up 1%. it costs now to hedge a japanese investor. they don't get 2.3% if they are hedging the currency risk. the point is higher fed fund rates and higher rates by the fed will translate to less attractive yields for hedge investors into the u.s. market. that is a way of saying yes, financial conditions will tighten as the fed raises rates. julia: that is a great point. thank you so much. thank you for joining us.

hosted by jonathan ferro moving to a new time on fridays. 12:30 in new york, 5:30 in london. don't miss it. next, our stock of the hour the has outperformed. it reported results after the close yesterday. julie hyman joins us with the details. julie: 55% for roku. it is one of the streaming companies that has been around for some time. it is a hardware company. you use it to access various streaming services. the business is doing better than analysts expected even as it sees competition from big competitors. tv makers embedding the technology and streaming services with apple that have their own stuff.

the numbers were better than estimated. .he company saw a 40% increase that is one of the eye-popping numbers we saw. joe: the really interesting thing, it doesn't fit with the narrative that all media and tech is consolidating. scarlet: that is not to say that that won't happen. but for now, it is interesting to me because it has been a name around for a wild. it is just now gone public and the stock has done well. it is relatively heavily shorted. that could account for some of gain that we saw today. more than 20% of its flow. scarlet: just a new company doing well, those are -- disappointing stories. thank you.

coming up, high-yield debt continues to boom. viability there. is the market able to rise against it? three charts that you cannot miss. this is bloomberg. ♪

i'm scarlet fu. emerging market stocks and the dollar have an inverse relationship. dollar is usually a tailwind for those stocks. that has been the case of the past year. you can see the red arrows indicating that relationship. emergingline is the market index. over to the vertical yellow line here and it shows how that in earlyas changed september. we're seeing the dollar strengthened as the economy continues to plow ahead. a strong labor market. earnings better than expected. tostocks in blue continue

gain as well. we have this record-breaking rally, constant highs. investors see more investment opportunity. the question here, is this a temporary break from the pattern that we have seen or is this a paradigm shift? julia: we shall see on that. talking about paradigm shift, the one we have not seen between the stock market and the bloomberg high yield index in the united states. we have taken it back to january. these are tracking each other. then what we are seeing on the right, you can see that what is starting to the slight divergence yields widening and the high-yield market, a lot of questions being asked about the last few weeks and months about whether or not yield spreads and high yields have gotten too tight. risk reward not looking great.

not necessarily the fundamentals to that extent but they just got to tight with too much money chasing asset prices for higher return. we can ask whether or not tax reform is going to happen. the debate is open. bank of america saying 40% of high-yield stocks could be impacted by tax reform but you have other saying it is only the triple c's you have to worry about. the this is the chart of week in terms of what people are looking at. exactly right. here is some good news. i show this chart every few months. we got a jobless claim today, very low. one of my favorite ways to look at claims, looking at the broad sweep of the unadjusted numbers, which jump and spike of all throughout the year. smoothing those out with a 52 week moving average. you do not -- it gets rid of the noise. we have hit another post crisis

level on this level. one of my favorite ways to look at the labor market at its best level since the crisis, no signs of any weakness in this area at all. impressive chart, smoothing out volatility week to week. a lot of strength there. scarlet: there is a strong market. joe: another way to look at it. julia: there is a conversation about what is going on in the high-yield markets as well. you look at the growth picture, , the backdrop is good. joe: and it confounds the flattening curve narrative. people often say there is a recession coming. there is nothing in the data now that is particularly obvious that would say there is a reason to worry. is ont: that everyone edge and looking for a reason to fullback. the market closes next. 4/10 of the dow off by

a percent retreating from a record high losing a third of 1%. is a big booster here. from new york, this is bloomberg. ♪

♪ [applause] julia: what you do miss?

after back-and-forth in washington over tax reform, we are looking at the higher credit market off of the dollar extended losses. i am julia chatterley. scarlet: i'm scarlet fu. joe: i'm joe weisenthal. if you are tuning in on twitter, we want to welcome you to our closing bell coverage every weekday from 4:00 p.m. until 5:00 p.m. eastern. scarlet: pullback in u.s. stocks. market minutes. red arrows all around, the dow losing 100 points. earlier it had climbed as much as 253 point. we have come off of the lows nicely. joe: it looks like we could have a real selloff today, but a modest one. scarlet: sort of modest, as the senate revealed the tax plan was delayed until 2019. and tech shares was heaviest, but we had retailers in focus

today because they are reporting results. macy's, up by 11% and coming back from earlier gains, it is optimistic about the holiday season and it has kept its outlook in tact. investors giving them the benefit of the doubt. there are manyon questions about what the company will do to make sure that beyond cost-cutting and e-commerce, it can survive through the challenges that the retailers and department stores face. time warner off by 1.46% and questions about whether the at&t deal for time warner will go through. a lot of issues and stories reporting on whether they will have to drop cnn as part of the assets there. time warner wants to get the deal done and they are determined to push ahead, even if it means bringing the lawyers to bear. has won and5%, joe

we were talking about earnings and how they are better than expected. joe: ticket with a government bonds. so not a ton of action or economic data. lower yields on the risk of sentiment, but not budging a lot. where there was more action was in europe, the long end of the curve particularly. france,30 year yields, germany, ireland and italy, substantial moves all day. perhaps some anxiety about perhaps the strengthening economy and to the end of ecb e-zine at some point -- easing at some point seems to have pervaded the market. you look at the losers today, the long end of the european curve. julia: a lot of headlines to watch for investors. scarlet: we are breaking in and eliciting a mitch mcconnell speaking. senator mcconnell: and the administration as well,

represented here today and we have worked together closely to get to this point. and america is ready for tax reform again. to get a growing again, likely know that this code will do to give those jobs and opportunities with it send tax relief for the middle class. >> we are very happy to have this administration to work with, they are doing a great job. and as the senator mentioned, this has been a tremendous -- a nd we are willing to work hard to get this done. and the president as well. tothank you, congratulations the committee and we very much appreciate the opportunity to work with you. and we are moving in the right direction for the middle class tax cuts and making businesses competitive. i would also like to knowledge the progress the house made today and we look for it to

getting it signed. mr. chairman, thank you very much for your leadership in getting us to this point. it is another step of progress tim bringing real tax reform -- to bringing real tax reform to the american people. we are excited. >> leader mitch mcconnell, they believe the women that made accusations against -- [indiscernible] [shouting] >> thank you. >> mr. mcconnell, do you believe that women have made on the record acquisitions against roy -- >> thank you. >> let's go guys. >> goodbye. >> on taxes, do you think -- >> goodbye. [indiscernible] >> what more information do you need to -- these allegations are true? >> that is the end of it. thank you. [indiscernible] >> move please.

>> let's go. cameras off please. keep moving folks. julia: we were just listening a mitch mcconnell outlining tax reform proposals. scarlet: the unveiling of the plan. julia: steve mnuchin as well saying we are making progress. and the house making progress as well. and as you can see, we got questions from reporters that clearly mitch mcconnell was not expecting there and appeared very nervous, all coming back to allegations against roy moore, the candidate for alabama. we have a number of senators that have come back to say that if these allegations of sexual accusation against roy moore are true, they expect him to stand aside. mcconnell has said that already today. i think it was difficult for him in that situation, he could only

reiterate what he has already said. that press conference there being railroaded by roy moore, which is uncomfortable again for the gop. scarlet: i will railroad you right now, because disney is reporting results, $1.07, the estimate was for $1.14, so this is matching the lowest estimate in our surveyed analysts. 12.7 $8 billion probably short of what analysts were looking for, $13.32 billion was the consensus estimate. and $1.2 billion for the cable -- they were looking for $1.27 billion. they had warned about higher sports costs, and tough film comparisons before things improve, so this is maybe what we are seeing. nonetheless, disney shares pushed down in the after hours sharing by 3.5%. joe: and this is a stock that is down 3.6%, down over 115 as

recently as the spring, then selling off and rallying a little bit lately, but weakness is now resuming. 4.6let: parks and resorts, $7 billion in the quarter and i think we are looking at $4.5 billion. so that number to come through, even with hurricanes in florida. julia: and texas. let's bring in a look at the miss on the top line and bottom one, but they had hinted it was a tough quarter. >> it was, but for the verizon the media tape, this is another piece of ammunition. disney obviously is the core media network business -- some struggles with court affecting the industry. one could argue that -- is the most exposed to the cord cutting issues going on, but people need to remember the other two pieces of the business, the film and entertainment business, which is the movie studio, is doing well and is expected to have a very

strong 2018. and the parks and resorts business did take a hit from an operating perspective relative to estimates, probably due in part to hurricanes, which impacted disney world in florida, but overall it has been a strong business for disney. scarlet: no details here on their direct to consumer streaming service. they surprised people not long ago by saying they would do with this and no longer work with netflix, bob iger speaking in a press release saying that we look for to launching the service in the new year, so not just far away, but we do not know how it will work. >> i think it will be a disappointment for investors, i think it will try to push it with management. a couple issues investors are getting comfortable with is what types of programming will be put on to the stream and services, and if the disney branded network, how much investment will be needed to program the networks, and how will you price them in the marketplace so they can model with the profits could be. scarlet: and whether it will

cannibalize what they have existing as well. >> that is the concern. joe: disney in the news heavily this week with reports of having talked with fox about some sort of deal for some of their assets. also, you know, the whole at&t and time warner. in terms of deals, do you expect to see something whether it is fox or not, are they in a position where they feel they need to do deals now? >> i think we will see more deals, we have seen some on the distribution side already with at&t and directv and charter communications and time warner cable, so i think we already had discovery communications this year by scripts networks and -- scripps network and we see fox and disney now, so we will definitely see movement on the content side. the reality is the u.s. paid tv business is declining, and i think in declining businesses

you see them look at the portfolio of assets and see which ones they want to maximize or could be more valuable to somebody else, so even rupert murdoch who has been the biggest empire builder of all the empire moguls over the last 40 years, even he and his sons are thinking about selling parts of the company. julia: disney reporting q4 media billion,evenue, $5.47 $5.66 billion expected, we know that there were some problems. disney saying espn results comparable to the previous year's quarter. paul sweeney of bloomberg intelligence, thank you. scarlet: more earnings. nordstrom with results, $.67 earnings per share, revenue better than expected, $3.6 billion, looking for $3.56 billion, but when you look at sales, down almost a 1%. that is more than analysts were

looking for. nordstrom rack in particular, the off-price chain, the comparable sales in the quarter off by 5% when they were looking for a 10th of a percent, so not a good sign. and gross margin weaker than what they were looking for, 34.7%. in terms of sales from the hurricanes, about $20 million in lost sales. nordstrom shares off by almost 5% in after-hours trading. this is bloomberg. ♪

♪ i'm at mark crumpton with first word news. one of their many democratic -- with the integrity commission is suing the panel's top officials,

include vice president pence. the main secretary of state filed a court complaint in washington demanding that the panel be compelled to conduct business fairly and with his full participation. dunlap says he has heard nothing from the commission since they last met in september. mitch mcconnell is joining john mccain in calling on roy moore to withdraw from the alabama senate race if allegations are substantiated that he initiated an inappropriate encounter with a 14 euro girl nearly 30 years ago. -- 14-year-old girl nearly 30 years ago. she says that she was forced into sexual contact by the then assistant attorney general. the district attorney, excuse me come after he took her home. he was 32 at the time of the alleged incident. nato allies to provide more troops in support of the war in afghanistan. the alliance will supply 90% of the military requirements that

the u.s. commanders have mapped out. jim maddox spoke about the increased contributions of nato to the war effort. >> two dozen nations have stated they intend to raise the troop numbers may have on the ground now, including some very small nations for him this is the largest -- for whom this is the largest overseas deployment they have been engaged in. mark: leaders say they are encouraged by continuing discussions with several nations. and senator rand paul's longtime neighbor pleaded not guilty today to charges he assaulted the kentucky republican while he was mowing his lawn. he faces up to a year in jail if convicted. the senator did not attend the hearing and wrote on twitter that he suffered six broken ribs in the attack and has excess fluid around his lungs. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg.

scarlet: let's get you a check on after our trading. results,st reported earnings per share and revenue missing the mark for disney, although the company indicated there would be softness because of higher sports costs and tough phone comparisons. shares off by 3% and it did not give any details on the direct consumer offering for the sports channel and for the disney branded content, which is supposed to be launching early next year. we will watch for any kind of commentary on espn, because the cable network's revenue often misses the consensus. julia: a quick look at what is going on with nordstrom's third-quarter earnings. we have then talking about this stock in mostly with the idea they may be trying to take themselves private, clearly struggling with that and it is disappointing results. third-quarter revenue coming in

better than expected, we have $3.6 billion, the estimate $3.56 billion, but that is all for the good news. 34.7, the estimate 35.1. they have adjusted down the top side of the full-year expectations, the range did go up to three dollars, they brought it back to $2.95. and when we look at comparable sales down 0.9%, the estimate was 0.4%. nordstrom rack comparable sales down 5%, the estimate 0.8%. scarlet: that was a lot of weakness. julia: it was. investors reflecting that after the close with the share price moves. scarlet: with republicans and releasing the summary of their tax bill today, tax reform is the topic on everybody's mind. citigroup ceothe

spoke with david westin about the importance of tax reform and the impact on citigroup and the u.s. economy. >> if you look at what is going wayshat tax reform in many is about is trying to spur incremental growth. so we have an economy this year probably coming in in the low 2's. clearly below where we have been historically and where we want to the economy to the. what can tax reform do? on the corporate side, american companies are the highest taxpayers in the world, so if we get a reduction maybe that will be the catalyst that changes the psychology that is there. maybe as opposed to eking out the top line growth, it will extend discipline and being stingy, we actually see some of that in the form of investment coming back into these companies, and we can get more jobs and more growth. i think from that perspective of what is being proposed, we need to see the math, and it is not

done yet, but it is making u.s. companies competitive in that we are moving somewhere near the global average. the u.s. companies today are paying above in the tax rate, above foreign competitors, so it is pretty competitiveness. on the consumer side we have a consumer in relatively good shape, but -- ok, look at unemployment 4.1%. we could argue storm affects, etc. if we look at credit and savings and is spending, what is it that can act as a catalyst? from the u.s. perspective, two thirds of the u.s. economy is driven by the consumer. so if we can get more engagement out of the consumer, we can shake some of the investment loose from the corporate side of things and maybe we have a chance of pushing the economy near 3% growth. david: you have the advantage of speaking with real businesses making the decisions across the world, economists raise questions about this and do we

really believe that companies who are getting more money will pay their workers, more will it drive the wage pressure, because we have had a lack given the situation? >> it has been remarkable. you go back to quantitative easing and a stimulus and all those things and what they have done, it has been effective on the housing front and for the jobs front, but it is very challenging in terms of wage. for 4.1% unemployment, we have seen a lack of wage growth. we have seen in urban construction jobs, and in some other pieces, but potentially what happens is part of this, i'm not saying everybody comes in and grants their workers an increase the next day, but a couple things they can do -- one, tighten the labor market as people go out to get labor, or workers to do certain things and that will create some wage inflation which would be nice. the second piece that is

important is when we look at 4.1% unemployment, we still have 95 million people who are choosing not to be in the workforce for whatever reason. and if we can get them engaged and get them earning, and get them as part of the workforce growing the base, then that is a powerful piece as well. david: how do we connect the dots? how will increase wage growth help you with the return of equity? you had a challenge getting the 10%. take me through the steps. michael: our business is a function of customers and clients. on the institution side, we are a bank of fortune 500 companies and more. so when we look at u.s. companies and they get tax relief as part of this and they investment, we will be supporting them.

we will be doing lending, capital markets, all kind of things. then that will manifest itself in activity for us and within that activity we have the ability to earn money and hopefully turn some profit on that, so it will be the derivative effect of importantly of what our customers and clients do. scarlet: that was the ceo of citigroup speaking with david westin. julia: coming up, a deeper look at retail, specifically macy's and a nordstrom with their third-quarter earnings, shares falling in nordstrom after the store reported gross margins that missed estimates and they have shaved some off of the top side of their forecast. we will discuss. from new york, this is bloomberg. ♪

♪ julia: would you miss? spotlight on retailers,

nordstrom the latest to report earnings. shares falling in the after-hours trading. for more analysis we have sarah covering the consumer and retail industry, joining us from our washington bureau. good to have you. talk to me about nordstrom and nordstrom rack, because the weakness is a huge concern. sarah: i think when you unpack the numbers the things that stand out to me as the star difference between the brick and mortar and e-commerce operations, a bloodbath in the brick and mortar. and even when you look at the e-commerce number, only 7.5% growth for the main brand, that really lags from the rest of the industry. havehas the e-commerce, they been growing more aggressively prior to this quarter? sarah: they had been and they had strength in the quarter that included the summer, there was an anniversary sale where they previewed the fall merchandise.

and it was a real e-commerce strong point for them and it looks like that has stopped a bit. scarlet: nordstrom rack was the part of the business that was supposed to provide the next leg of growth and it is something that other chains like macy's are really counting on as well with their backstage concept, is this the downside of controlling inventory so well where you do not have a lot to move over to the off chain, or rather the off-price chains? sarah: i am not sure it is inventory, because they have separate buyers for the operations. i think what you see is off-price is getting really crowded. t.j. maxx is still opening their doors at an incredibly strong clip. and across his opening stores -- ross is opening stores and macy's as you said is bringing the pressure, so that could be the issue. julia: we have rotation going on, they have closed stores this

year and they have opened 6, so the rotation will continue. is that the plan for these guys? and given the pullback we have seen with the share price, at one point do they take it private, and will it become impossible? are a i think the results setback for the chance to go harder and it makes it for them to make this holiday quarter a strong one. this will look different for each different retailer. macy's has been aggressive on a percentage basis in closing their stores and they have been a lot of the hard work already, while nordstrom has a small fleet, less than 200 department stores, and you look at the jcpenney and koh's they each have about a thousand stores each and it is hard to see how it will be sustainable in the digital era. scarlet: sarah, telling it like it is. covering the consumer and retail industries.

thank you so much. this is bloomberg. ♪ retail.

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.

♪ mark: i'm mark crumpton and this is first word news. the white house raising the house the ways and means committee for improving the republican party's tax package. the legislation on goes to the full house. the house gop proposal cuts corporate taxes, doubles the personal standard deduction, and simple five the tax code by eliminating a host of breaks. senate republicans released to their own version of the legislation today. nearly two months after hurricane maria pummeled puerto rico, approximately 3000 people are still in shelters on the island. now fema is offering to airlift victims from puerto rico to the united states to reach a temporary housing. fema said it is providing the

transportation at the request of the puerto rico governor. fema is working to establish agreements with the florida and new york to accept the relocated survivors. the government says more than 600,000 people signed up for the affordable care coverage in the first week of open enrollment season, and nearly -- were current customers reviewing their coverage. -- renewing their coverage. according to figures, about 23% were new customers. open enrollment will end much earlier this year, on december 15. members of congress and the u.s. capital today honoring the five officers who responded when a gunman opened fire on lawmakers and others during the june baseball practice. witnesses said that the carnage would have been far worse if the others and their colleagues, the officers rather, and colleagues with the police had not engaged

the assailant in a gunfight, eventually killing him. steve scalise of louisiana was the most seriously wounded in the attack. >> i am here today because of the heroism of these men and women, thank you so much for your sacrifice and for putting your lives on the line and it is great to see all of you back here. we are all getting better and again this could have been a tragedy, like so many others, and it was not because of their heroism. mark: the officers were given the medal of honor, the agency's highest honor. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. let's get a recap of the market action. a lot of down arrows for u.s. stocks, although the dow did fall at 253 point at one town -- one time, it is closing off by 121 point. the senate releasing their own

version of the tax bill and investors are digesting that. plenty of earnings after the close, one that just hit the wires, nvidia, one of the best-performing over the past 12 months, gaining about 193%. it is a chipmaker, and it is reporting fourth-quarter adjusted gross margin, that is the outlook, let me get to the third quarter, $1.33. revenue also higher than anticipated. and raising its quarterly cash dividend by 7% to $.15 a share. joe: so many drivers for this company, artificial intelligence, cryptocurrency -- and the chips. scarlet: you need those chips. joe: and a little bit of a pullback because it is doing so well. scarlet: and they said that they will be returning $1.25 billion

to shareholders through dividends and buybacks, as well. julia: just to recap disney and of their earnings. looking through the individual components, china to find where they may be beat -- trying to find where maybe they beat estimates. they were facing challenges whether it was the resorts business, advertising, we have the adjusted epf coming in at $1.70, estimate was $1.14. $12,n the revenue line, the estimate with $13.32 billion. the cable network operating business as well a little bit lower than expected for the fourth quarter, and is similar for the cable network business. as you are saying earlier, scarlet, some of the weakness we have seen elsewhere and concern about cord cutting, especially with espn, it was offset by the strengthening of the theme

parks. we have not seen that this time around. scarlet: we have not and we will wait to hear what the company says about their plans to bring content directly to the consumer through the direct streaming offer, which will begin next year. to your point about espn, there was a tweet earlier that they will be laying off more than 100 staffers after the thanksgiving holidays. we do not have a confirmed, but espn will reportedly continued to streamline operations and this would be part of the sports illustrated brand. joe: we also have hurts -- hertz, these are beating estimates. the auto rental company hammered, but surging after hours. scarlet: we will stay with that. canada's largest auto parts supplier reporting results, beating estimates on all counts and raising the full-year sales

outlook. for more we will bring in lily from toronto. take us through the story. lily: shares of magna international, not getting much love from investors after the earnings release and i think the concern is that there is growth, but a lot of it is expected to come from the lower margin parts of the business, like vehicle assembly. and coupled with that, as the company is still exposed to the global expectation of, a global slump in production volume, so that is because a vast majority of the business still resides with auto parts manufacturing, which is also exposed to all things nafta and i think a lot of investors like to look at just not magna international, but other companies like martin rea as a proxy for how things

are going with nafta. joe: obviously, any canadian company will be under the microscope because of nafta, as you mentioned, but was specifically will it affect with parts suppliers? lily: the big thing is rules of origin. what i mean is what percentage of a vehicle needs to be produced in north america in order for it to qualify for tariff free treatment. right now the number is 62.5%. the americans want to up that to 85%. and they are asking for a 50% content requirement, meaning 50% of these vehicles would be produced in the u.s. i mentioned the number two largest canadian auto supplier, and they addressed that head on as being so ridiculous that there is no way that canada or mexico would go for that, that

it is not even a scenario they are mapping out. what they are considering is the possibility that nafta gets scrapped entirely. julia: will happen then? what is the contingency plan if nafta is a scrapped? -- is scrapped? lily: bear with me, because there are a lot of assumptions, but the expectation is it would go back to the most favored nation status and the ceo of the company addressed that head on, saying she puts a between about 2% and 2.5%. there is assumption the u.s. it would want to remain part of that, so that is where they are putting the estimate, but it is not ideal for them. however the ceo over there said it is not enough to disrupt their business, in other words bottom line nobody will be moving production for 2%. julia: good point. lily in toronto, thank you. scarlet: better to wait and see

if things change. coming up, u.s. unemployment at a 17 year low, so why are we still failing to pick up with wage growth? joe will discuss it. this is bloomberg. ♪

>♪ is almost aowth percentage points lower than it was in 2007, the peak before the downturn. wage growth is accelerating for some, in fact, so we will dive in and i will bring in matt. you did a fantastic piece today, really sort of moving past the

headline number which we talk about all the time, and it looking at where we see the wage growth and where we are not. one thing that is surprising, while there is not robust growth, at the low end least th -- we see some growth. matt: the labor department has hundreds of different theories that they catalog for all the different industries, and when you break them up by sort of the industries that pay the least amount on an hourly basis that is where you see the wage growth right now, so a lot of the reason it had been held low is because of the higher income earners. joe: what is this chart? matt: it shows the four biggest employers in not bottom area. so this shows restaurants, the blue line showing the big-box retailers, the red line you have the grocery stores, and green line you have those firms that provide services for the elderly. what you can see, this is interesting, the reason why it is so much faster at the low end

compared to 10 years ago when the labor market was tight is that wage growth was depressed for a lot of the low-end categories back then. it is not superfast now, but faster than it was and the other interesting thing in the chart is none of these are still accelerating at the moment. you can see at various points throughout the cycle some of them are really high, but now they are coming back down. so we see a lot of cycles within cycles, which is something that we have talked about. joe: the next chart is interesting and i want to know what the deal is, one area that has seen wage growth and that is, what is this, armored vehicle drivers have seen extraordinary wage growth -- what is it? matt: if you take the category out of the low end, it really knocks it down, so this is accounting for a lot of what we are seeing at the low-end. joe: 25% wage growth if you are

in armored car driver. matt: wages for security guards and these drivers started surging last year and now up 24% year-over-year. it is not clear exactly why that started surging, but once it goes back down the wages data will probably look a little bit worse than now. joe: i wonder if it has to do with background checks, because we have heard employers talking about drug testing and background checks being a hindrance and i think this is an area where it would be important. matt: that could keep it elevated, but we will see. joe: the next chart looking more at the slightly more high-end areas of wages. temporary health and nursing care facilities, what do you see and why is a significant? matt: this is moving slightly up to the second area of earners, so you have categories you might think of as low-wage and they kind of our, temporary health

services, travel and accommodation, those who work at hotels, and nursing care facilities. what you see is really with temporary health services, that is where we see the pressure right now. it is well below where it was in 2007, so we have some ways to go, but something to watch. in the other two categories, hotels and nursing care facilities, you can see the wage growth is rolling over and it has been for a year or so, so no sign that the tight labor market is causing an explosion of pressure coming even though these are the categories you can see throughout the cycle, these are the traditional types of categories. joe: may be room to let the labor market strengthen. matt, economy reporter, thank you. scarlet: in the years since his election -- year since is the logic on donald trump taking credit for the surge and stocks. cochairman ofthe

-- capital, spoke with us about the impact of donald trump on the investment cycle. >> i want to point out there has not been a down month since the president was elected. and the only short thing we were sure of before the election was if he won, the market would tank. it reinforces my belief that we do not know what the future holds and we do not know how the market will react. i think there was great enthusiasm among the market participants that he would fix corporate taxes, tax reform, deregulation, and i am sure that that was the original evidence for the move of the market. and guess what, now almost none of it has happened and still the market is moving up. clearly the events indicate it is less likely to happen man it was -- than it was thought to be, but it has not deterred the market. >> but people say at least he

has reinvigorated the animal spirit we see with business and investment, when you talk about the regulation, tax reform and infrastructure, or do you look at the yield curve that could be used to flatten and you think otherwise? >> i think the expectation he will be pro-business is legitimate. he will be pro-business. that is only one of the elements. in our business, everybody is focusing on one element at a time, so the market thinks this will happen. but there is a lot of things happening and president trump is only one of them. behavedet has positively, the economic outlook is positive, the president's pro-business aspect is a positive. on the other hand, things are very expensive. and prospect of returns are roughly the lowest they have ever been, so if the assets are offering the lowest returns, how

much should they go up? the thing i harp on, in order -- world,in a low return and people are engaging in pro risk behavior and the risky behavior makes the market risky for us. that should temper our enthusiasm and that is the point i have been trying to make. >> have we reached the point of what is healthy and what is rational? >> i do not think the exuberance, or the behavior today is a rational. it is a rational response to risk free rate of zero. when the rate is zero, rationally people move out the risk curve to get a positive return. that is what has happened. it is not nonsensical, but it does involve risk and it has taken place and it has implications for all of us. yvonne -- scarlet: and that was howard marks speaking exclusively to yvonne man. julia: coming up, the next

in a special series with alix steel looking at the effect of shale on the global oil market. this is bloomberg. ♪

julia: all week long we are getting into shale, the meter

rock rise -- meter rick rise of shale has sent ripples through global market. we examine the history, the environmental issues and to the effects on opec. the break it all down is our colleague alix steel. great work this week. what was your biggest take away and obviously we love doing the overall and the hat? alix: you can watch my show at 9:00 p.m. eastern, tons of hardhat action. to be around shale for a long time, but i learned people not in the industry do not understand the potential of it and how much it could change the world. my point was to access the financial market people, but also my mother at home who needs to learn about it. and what is the next stage? do we keep growing at the same kind of rate in the u.s., and if we do not do we take the technology elsewhere? joe: i was going to ask, do

people not realize the degree to which this is a technology story? alix: not even close. my mother-in-law was watching cbs nightly news a year ago and they did a report on the revolution of shale and becoming energy independent and she did not believe it was true and she is extremely well educated. i said ok, i think we have to look at this. so that was one part of it, the people who do not know about it. and these companies, are technology companies they will and amazing's technology and anyone not necessarily have only geologist in the field. scarlet: we are talking about this like it is a u.s. only story, but it is not, isn't it? alix: i learned that there is shale everywhere -- china, russia, argentina, and they have really good rock outside of the u.s.. i went to argentina to take a look and is very close to the

u.s. in terms of geology, but everything is so much harder to operate. everything magically went right in the u.s., you had people who got the take on risk who are entrepreneurs, they were land ownership rights so people could make the money because they own the minerals under the ground, there is nowhere else in the world like that, we had previous pipelines from oil drilling so it was easy to do. scarlet: perfect storm. alix: perfect storm, and it will be easy to see how to deal with those issues in other locations. julia: could they adopt the technology from these companies, or could they go in and cap of the potential? alix: both. argentina want those who have the technology to do and they are saying come down, we will learn. joe: part of it is on the financial side, low interest rates, and looking at the debt market for activity, how much anxiety is there in terms of the next leg of the story, whether

that part will change? come whenissue will there is another problem in the market. typically, oil was not linked to financial crises because it operated on its own, the shale players are in the equity market so there will be a stumble that will have implications throughout the system and we've never been in that relationship before. julia: but it seems like oil prices have take. alix: but the only time it really happened, that was the only time it had a cataclysmic effect in the market -- julia: and it still managed to roll debt. scarlet: before you go, we have headlines with disney. the streaming service should have a star wars show. and ryan johnson working on the new star wars. joe: you had to get it in. alix: it will be a tv show? no jar jarthere is

binks, i am there. scarlet: good job and a reminder to join alix steel for the special on the meter arc -- me teoric rise of shale. that is a 90 5 p.m. tonight. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: a busy week. do not miss it. donald trump going to vietnam. joe: i will be watching for u.s. consumer sentiment out at 10:00 a.m. julia: do not miss jcpenney reporting third-quarter earnings tomorrow. scarlet: we already know it will be pretty bad. that is if russ. joe: have a good evening. this is bloomberg. ♪

alisa: i'm alisa parenti in alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's check your "first word news." the house ways and means committee has approved the gop tax plan, voting along party lines to deliver the measure to

the full house. plan increases the child tax credit and lowers the number of income brackets. republicans say it is a boon to the middle class. the democrats call it a tax bounty for the wealthy. senate republicans released their vision for a tax cut plan that cuts the corporate tax rate to 20% with a one-year delay to 2019. key provisions include retaining seven tax brackets and preserving the existing mortgage interest reduction for home purchases -- reduction -- deduct ion for home purchases with up to $1 million of debt. senators mcconnell and mccain are calling on roy moore to withdraw from the alabama senate race if allegations are substantiated that he initiated inappropriate encounters with a 14-year-old girl nearly 40 years ago. moore was 32 years old at the time. officers whove responded whenun