tax rate might not be cut after a. other changes in the bill. maybe it's not a deadline of all deadlines after all: european negotiators are willing to give theresa may more time to iron out a compromise on the irish border. bring what is burning: california white -- brentwood is burning: california wildfires, thousands evacuated. welcome to "bloomberg: daybreak." thursday, december 7. i'm david westin, with lisa abramowicz. lisa: let's get a check on the market minutes. where creamsense of dovish premarket trading is with abigail doolittle. abigail: let's look at shares of .e here we have a full screen of ge, up half a percent. this is set to cut 12,000 jobs

in a power unit, part of john flannery's turnaround plan. this is stock down 44%. year to date, worse than 2008. is enough tothis encourage investors ahead. bitcoin is amazing. over the last two days, bitcoin taking out several round numbers. over0-13,000-14,000, now 15,000. that, david. bitcoin continues. futures trade next week. it.id: mini is one word for lisa: another work. [laughter] david: insanity, i don't know. morning brief. 8:30, we will get job claims. at 9:45, bloomberg consumer comfort data. 11:30 this morning, president trump will meet with republican senators. later in the afternoon, he will

get together with members of the congressional leadership. that's all coming up later today. sign up for our daybreak first take, where we discuss the first stores of the morning. first up is tax reform. orrin hatch is saying ":there is a drive to set the corporate tax rate of 22% instead of 20%. we will turn brexit with theresa .ay, another proposal wildfires raging in southern california. joining us now is the person who oversees bloomberg, and jersey, here. all the way >> thank you. it's interesting. .e heard 20% then they came out, maybe 22%. now there is a steamrolling effect. corporationst what pay in taxes. corporate rates tend to be so much lower than that. .his is a benchmark number

now what they're realizing is that you are pushing this down. who is going to pay for it -- people like you and me, i live in new jersey and sx county. alix: i'm sorry to hear that. --lisa: i'm sorry to hear that. >> thank you very much. [laughter] >> there was a local tax deduction, 10% hit. that's one of the ways in which this is becoming very, very painful for a lot of people. lisa: if you look at the bloomberg here, he can say this is an estimate of how much certain regions could be affected. it's hard to tell, but the >> this maysions -- not be as bad as yours. [laughter] >> i can kind of see it. >> it's really dark. >> really dark there.

>> i want to get from your perspective, 22-20%. >> at the end of the day, this will grow because of tax cuts. math onlion by higher the 17-18-trillion dollar economy, you don't expect this to be going crazy. a slightly higher tax rate, with offsets with effectively higher taxes for a lot of people who live in high tax states. drag in the a economy. it's not obvious what these additional deficits are going to do for growth. this idea that we are going to see tax cuts, it's not wrought that you make it clear

will get higher growth, inflation, spending. >> the latest discussion about this 10,000 -- you can use this for your income or property taxes. we have high income taxes here, high property taxes that might need some compromise, so that might have a slightly less impact. people are looking for a simplified tax code. i'm not hearing anything simplified. it's not popular. point does the fed have to take account for its tax cuts? they said they didn't have to pay attention to it. >> they do, and they will. they like to see what is the actual bill come and how it will fit into our models, and into thinking? they don't

even know right now what the deficit projection will be. until they see the final plan, they want to reserve the right to not have an opinion about it until they see what the actual plan is. lisa: also, having to do with uncertainty and politics -- >> brexit. [laughter] >> set up, that was pretty good, right? [laughter] >> i'm glad we hear that>> european leaders are giving theresa may martin for the differences she is experiencing. >> breaking up is hard to do. >> honestly -- >> ooh. >> oh. [laughter] >> poor ireland. it seems like it is always torn. it is the poor stepchild once again. how do you do this without a border, which it desperately needs to keep things functioning everybody?o satisfy quite frankly, i don't know. i do know that there are real economic ramifications for real euro zone wide, it

probably doesn't have significant ramifications. ireland,dictions like this has major potential impact. a lot of companies that are talking about leaving london, going to dublin, it's still considered continental europe. >> and struggling with markets will really care. we haven't seen a massive selloff. look at the bloomberg. you can see a chart of two-year yields. a little bit of a decline, the white line is the pound. the blue turquoise line is to your u.k. guilt. you can see this a little bit, perhaps -- overtime, this is pretty well. bank.also have a central as they do that, this will support currency and front-end yields.

it's a little bit counterintuitive. the expectation was, as we get to the brexit vote, a weaker u.k. economy. you would expect two-year yields to go down. he would wind up with lower interest rates. you haven't seen that yet. you have seen inflation rise in the u.k., and i think that's counterintuitive to what a lot of people were thinking. >> that's because the u.k. still has control of its economy. >> that's part of it, absolutely. that's what, i think, policymakers and the u.k., a lot of people had hoped for when they voted for president. >> it's expected to be a long-term thing like 10 years, right? > struggling, because you are ,etting financial institution reserving even real estate with things like frankfurt or paris. >> they are not abandoning london, are they? they are hedging their bets,

creating more safety in more places to do activity, but not abandoning london. it is yet to be seen, right? will probably occur. as you mentioned, it will occur over years. if growth was going to be x, it will be x minus something. it's the idea that you have growth that it would have been otherwise. minus something. put that on your spreadsheet. [laughter] >> so, we really would be remiss if we didn't talk about the fires raging in california, moving towards a los angeles region. the images are just shocking, catastrophic. thousands have been evacuated from the los angeles area. disasterbeen a year of . >> the fires in santa rosa, so country, really

painful. they came up to $9 million. i don't know what the totals going to be, since it's clearly far too soon to say. when you add that to harvey, the , it'sanes, the caribbean .een a series of blows at least >> i do want to mention that this one estimate puts insurance claims at $100 billion for the year so far. in some cases, these premiums would rise 50%. this and others who would rely on their income, in order to pay these kinds of claims -- it's not surprising that you would wind up seeing high merit -- higher premiums. acuteas acute if not more

for interest rates remaining as low as they are. >> one of the questions is how much disruption to businesses -- company.the power their market cap went down $3 billion yesterday. they're stopping production of movies and television programs. the national gdp level, it's probably not overly significant for that region. it's going to be huge. it's certainly something that -- things like this could show up great job numbers, for example, when we get the jobs report for december -- >> you can't help wonder about insurers. there could be more catastrophic years than it might be for the bill. you have winds that are fueling this. to take this into account, are they building different models? >> most are. a lot of this is based on history. as -- as we have more history, you will extrapolate losses in

the future. >> we will keep an eye on that. our thoughts go out to all the people in southern california that are facing catastrophic time. thank you so much. we appreciate you being here. i want to get you caught up on pre-market access. up one basis point. dow jones down 13 basis points. mastec up almost one quarter of a percentage point. definitely a positive field. nothing dramatic. bit of a, a little rebound depending on where we go. coming up, we are going to take a look at the municipal bond market and what the effect will be on the tax plan and local governments. morgan stanley chief u.s. pollack -- public policy described it as text from, and its impact on bond markets. this is bloomberg. ♪

♪ >> most>> of the jobs will be outside of the u.s. for ge, struggling to downturn in the gas and coal power markets. bitcoin keeps on going. the cryptocurrency rose 15% yesterday and assumed through the $15,000 level. bitcoin up more than 50% this month. from theboost successful testing of the lighting network, which will provide a new way to pay with bitcoin. could be more

consolidation on the way in the gambling industry. advanced talks by british .ookmakers the price could be as much as $5.2 billion. they owned an online gambling platform. that's your bloomberg business flash. >> thank you. just the threat of a gop tax overhaul transforms the lack -- landscape heading into year and. the plan also has local governments crying foul. can you start by saying, what is the record supply of u.s. bonds peopleember, and why are buying so much? >> basically, the way the senate and house bill lined up, there were funding bonds. it's something foreign issuer to refinance this for the called

it. this has seems to have a lot of issuers ring some sort of supply before goes away. there's also evidence that in the house version of the bill, activity bonds, which will allow higher education issue bonds, those could go way. some insurers have brought forward of supply because of that. >> given the fact that the house and senate bills are likely to move production stash this would hurt certain municipalities. i'm wondering, are investors taking that into account at all? >> there's great debate about this. some investors are. the obvious problem that this thates is there's concern you will make that production. enterprises taxing this from living in that state.

texas. leave alabama and in our view, we think that concern is overblown. whether you look inside the academic research, some of the research we have done, wage earners -- which is who we are talking about here -- don't move for regions of tax on its own. in a morefferent simple way. if i wanted to save on my tax bill in new jersey rather than look workorrow i will from there -- how would they feel about that?probably not so good. if you are an owner of a company, you can be more mobile. otherwise, we don't think it will push jobs. >> it looks like we are going to get some tax legislation. details we worked out. what are the top three consequences? this is complex. nobody quite knows what's in

this bill. what are we missing? this is the number one potential. >> what about the alternative minimum tax? as the head of state going to get fixed -- is that mistake fixed>o get that was the next point is going to make. i don't know if it was a mistake, but no involved once to continue through the content -- the conference process. there's no sense in talking .bout 22% a raise is a next her $200 billion, almost the exact same amount as the last second, the corporate amt. it's almost the exact amount you need to have those provisions out. >> real quick: which localities do think would benefit the most from a tax plan? >> if you just look at where the dock -- dollars are going, it's lower tax states. >> they tend to be red.

>> seriously, if you matched up, blue red -- it may not be accurate all, i wish i could predict benefits. >> if you look at the joint committee on taxation, people put together the most dollars -- if you want to be a high wage earner in a tax states, you are doing the best here. how that lined up from a political perspective, think the best way to say it is republicans decided to do it in a bipartisan way. you didn't have the voices in the room so much from those others area -- other areas. >> that was so diplomatic, beautifully done. the best way to say this is it is not a bipartisan way. [laughter] >> love it. >> >> thank you so much. successor:buffett warren buffett has announced the board has picked his first --

replacement, but never disclosed the name. who is the heir apparent? this is bloomberg. ♪

♪ warren buffett. every year, he stands up and says, we know where it is. bloomberg is out with a piece today. we enjoy no by picking:. we think maybe he is the most likely candidate to succeed warren buffett. -- succeed warren buffett. >> we believe it is greg able, running one of the biggest businesses for buffett jerry kill some has a lot of the traits they are looking for. people have moved off in terms of a buffett is looking for. >> warren was there -- i was there this year. warren said nice things.

he loves jewish anger. >> they do. as she runs for complicated reinsurance groups for warren buffett over the years. what is happening really is this assists -- 66. he has said he wants a successor . >> why the secrecy? >> one of the things is that they want to keep it flexible. at the end of the day, we don't know a buffett is potentially going to step aside, or moved to the other side. [laughter] they want some flexibility, but also buffett likes the spotlight. it's a buffett show for shareholders. if they named the successor, there is some speculation that some spotlight would turn from buffett.

> one of the things about buffett is his relationship to age. he says if you are 65, you're old enough to be an intern. many on theof -- border in their 80's. >> that's right. ceos run their operations. they let the ceos do their thing. deadline and they have to come up with a successor? >> no. they have to note -- the board has to know who it is. they never announced it off it passed away, they would put a name in place. >> he said this year, stock could go up if i left tomorrow. >> he believes wall street would want to break up businesses. >> this is amazing. to me, it's fascinating. there have been so many succession plans. there's been a push for or announced -- what we will be talking about later. it's definitely an interesting

year for this. >> we will see how it goes. >> it doesn't affect the performance. be evenlieves it will stronger. from, to greg able. this will continue to be a win for shareholders. >> thank you so much for being here. toing up, it was considered be a currency to avoid. now it's on everyone's buy list. more on what you have to do -- may have to do with theresa may. how this is reflecting all the uncertainty about exit. this is bloomberg. ♪

♪ >> this is "bloomberg: daybreak." i'm david westin. we want to check with markets with abigail doolittle. abigail: good morning. we are looking at a mutual risk

appetite. take a look at the dow futures down slightly. s&p 500 futures flat ever so slightly. s&p 500 has her first. downside late day. three day so far of this. we will keep an eye on that. offsetting that for equity futures, would basically have the yen trading lower against the dollar, gold lower. assess suggesting -- let's look at the reason for this haven assets, most likely trading lower. it's the dollar. bloomberg dollar index up nearly 3/10 of 1%. since november 20 ahead of jobless claims out this morning. >> let's find out what's going on outside the business world. we are left to turn to taylor riggs. the speculation that al franken may resign today over sexual harassment claims. more than half of senate democrats have called for him to step down. he plans to make a statement today in washington. on capitol hill, house

republicans are going ahead with a plan that would avert a government shutdown thread for saturday. house leaders are overwriting more conservative republicans who wanted longer extension. almost no world leaders are agree with president trump's decision to declare jerusalem the capital of visitor -- of israel. he said it would move the vested interest of peace between israel and palestine. there will call a decision on helpful, and -- this uprising and declare that the middle east peace process is dead. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs, this is bloomberg. lisa? lisa: thank you. a year ago -- before we get into this, i want to touch on this. i think it's important, not only for the region, but also with

resid -- respect the u.s. position with its allies, a lot of big european leaders coming out, stemming the move that the embassy, toe two jerusalem. > there was some resistance between europe on one hand and the united states on the other. this really is a start -- a sharp divergence. tracking the muslim, arabic world, there's a live shot of ramallah. it's the de facto capital of the west bank. there are some protests going on. we will have to see how this plays out. your name in jerusalem as the capital for the united states. >> we have been so focused on north korea and asia, and the middle east front and center now. >> there was a little bit --

>> i recall. >> talking about the effect on the world equity market, and britain a year ago, it was considered to be something to be avoided. now it is topping analysts list. there is an agreement now that the pound is to strengthen in the year to come. sachsg us is goldman chief global equity strategist. the pound, really? >> good morning. [laughter] >> we don't share the view that it's aggressively to buy at this point. we have the dollar of the course of the next year. it did have quite a shock for the brexit vote. the upseen sensitive to and downs, ebbs and flows of the discussions around negotiations. we think it will still be sensitive to political developments. david: at the same time, it think there's opportunity to invest in ftse. i should say we are

bullish with equities in general. we think it's around 4% again next year. that benefits equities in is one ofhe ftse 100 the most global nexus that there is. 80% of revenues of companies come from outside of the u.k. in the ftse 100. to the extent the u.k. economy doesn't really affect a lot of these. >> it's important to decide when you're invest during in a foreign investor in ftse, you lost that -- have a view on the pound. been looking at dollar investors hedge. do well hundred would in local currency terms. there's also other terms in the the next layer down and companies, up 50%.

there are more companies and it. there's lots to grow in smaller companies. >> ftse, the u.k. is one half of the brexit trade. to showe chart of now how this will go up. the s&p 500, and asia since. you can see the white line at the bottom. when comes to this -- it doesn't turn around. >> there are couple of things that account for this in terms of the markets. one is that the euro has been strong this year. >> important point. it would be a different line. hisn important other factor that one of the key drivers of

equity markets has been the technology sector. technology counts for one thiser of the s&p, 27% of index. accounts for 5% of european indexes. it's on the way to one of the key industries that has driven bull markets. >> one thing we were just talking before the segment. you said you are overweight bank stocks. even in europe, considering the fact that, especially with regulations -- there's one estimate from coalition development, a research firm says they may lose as much as 15% of their revenue from trading stocks in europe as a thatt of the method rules are going to -- into effect early next year. you are still bullish. why? >> we are bullish in the u.s. and europe. european banks are the epicenter of the crisis we have seen in europe.

they have been down from weak , rising capital requirements company the need to this hade of this -- significant cuts in their dividends. that is beginning to change. we think they are reasonably well capitalized. interest rates are not going down anymore. we think it's a valued sector, this finally is level to improvement and growth. >> staying on european financials, how much divergence is there among countries? regularly, there's a lot of challenges for banks. >> generally, we like banks across the european continent. obviously, some have that are capitalized than others. they're all pretty well levered now.

declines inhe interest rates, which should get their margins -- we like that is a sector overall. there be a different weight in the countries across europe. if you take a country like spain, which had been weak recently, largely for political reasons, you have 40% of that index. 5% of the index is made from that. it's a big's red. >> i did not -- a big spread. >> i did not know that. many thanks. bitcoin is consuming in a quick climb. we -- eight big climb. they're not letting me said, but we spoke with it coin jesus. [laughter] >> as you are committing today, you can tune into tom keene and jon ferro 7:00-9:00 every morning on the radio, then tim

fox joins the conversation. bloomberg surveillance can be heard in new york, boston coming up bay area, all across the u.s. in sirius xm. this is bloomberg. ♪

♪this is taylor: "bloomberg: daybreak." hewlett-packard in the green room, coming up in the next hour. multi-asset solutions. ♪ now, to your bloomberg business flash.

isre's a reason comcast battling disney so hard. disney according to a person familiar, comcast wants for control of sky, a british tv provider. they make more than most other pay-tv companies in europe. the between billion dollar charge for tax cut bill, according to the city's cfo. this would come mostly from a bank writing down to diversity test -- tax assets. up -- with a walgreens ceo. the company does not allow for any kind of partnership. cbs rattled the health care industry with its 6.5% bill $6.5 billion takeover proposal. that is your bloomberg business flash. david: time for wall street beat

, three things wall street will be watching this morning. or three stories today, first a bloomberg report on which blackrock and goldman sachs are likely to rule wall street going forward. we had some unfortunate support for harvey weinstein from this person, even as they sexual-harassment scandal was breaking. to take us through it all is jason kelly. here is the executive editor. started off with this great fascinating report. goldman, blackstone, blackrock, the stocks they have done. >> this is a fun game i can play in the newsroom all the time, talking about these companies. one of the best ways to look at see,, it's interesting to blackstone has had the most turbulent ride in the market. 2007only been public since .

when you look at the market cap, it does not punch as high as the others to in terms of public markets. >> it also has fewer assets. .> it does for the moment what this story tries to get to is this idea of influence within , influence across the new wall street. again, this is a company -- i've spent a lot of time writing about them -- in some ways, they have only been around for 25-30 years. over the last 10, they have separated themselves from the rest of the private and what he industry. government took a huge entry in the financial crisis, and has reinvented it self. blackrock, trillions and trillions. >> i need a number. >> more than in the past. definitely interesting to watch. >> that's a great piece of it. >> another interesting stock to

,atch is paul schrader jones his relationship with women. i love you. the good news is, it will go away sooner than you think and be forgotten. america loves a great comeback story. this in an email in october to harvey weinstein during sexual-harassment and sexual so claims. >> he resigned from the weinstein company board. first it started out with, you will be fine. then, he's out. >> once interesting is, this is a scandal that has not come up to many people's surprise, touched wall street any meaningful way. there was news today with al franken. but this also seems to illustrate is the derivative effect of all this. a lot of powerful people were behind the scenes. paul trader jones is a great example. people were offering support, maybe quietly. , howis is the key point

much further of the technicals going to reach of what is some of this. >> i think it's fair to say we haven't seen the end of it yet. bitcoin, rbs chairman howard said it's hard to see any rational regions for the recent surge. >> i think all the authorities can do is put up the sign for dante's inferno about the employee who enter here. that's probably what is needed. that probably need to be done via fed, also by the fcc, also the bank of england at the same time. it's hard to see any solid rationale for that move. chairman of rbs. overall he who enter here. take a look at what's going on, compare bitcoin to the price of gold. the rhetoric, friends around this is just incredible.

>> lisa, i'm sure you've seen this. but that some of the stories on the bloomberg every day. method in bitcoin. those are the two things that seem to be growing. >> bitcoin has risen by 50% in the past month. that is shocking. one of the fun stories is how it's playing in south korea. there is an extraordinary high price. the one thing i want to leave you from this great story. if we let things continue, i feel a serious pathological phenomenon could occur. that's what we are hearing about these things. >> i guess you analyze the pathological implications. jason kelly, thank you so much for joining us. executive editor. ouroday marks week three of six part series out of cryptocurrencies. except -- each week, we host a special guest to dig deeper into

the complex phenomenon of bitcoin. yesterday, i have the opportunity to talk to richard veer, one of the first investors of bitcoin since the ceo of bitcoin.com. nickname,n the -- bitcoin jesus. he says they are powerful. >> if there is no one single place than any government or corporation or anybody can go to to shut the cryptocurrencies down or turn them off, that's a really powerful innovation. the invention of bitcoin, you would have to get permission. you had to get permission from my bank, the other persons bank. bitcoin, anyone in the world can send or receive any amount of money with anyone else instantly basically for free.

this is a powerful tool for people who have their own money. >> outside of any government control, is a powerful quality also part of its weakness? purposes,llicit whether it's money laundering or drug dealing, potentially terrorist activities. does that mean governments sooner or later will try to interfere with us for just that reason? -- and areo parts two parts to that answer. tariffs --most terrorist financing around the world, clearly as the u.s. dollar. if your rebuttals sorts of things, you better be worried about the u.s. dollar. governments all over the world look for the differences of people who have money, a way to take a portion of it. it won't be different with bitcoin. they have a giant amount of traction. this is over $12,000 each now.

they will want to take a portion of that. the exciting part about bitcoin is a makes a more difficult to have control of that. if you are someone who believes in economic trip -- freedom, it's great. >> as you know well, we are about to have some regulation. we should not have cryptocurrencies themselves, but a future trade. in your estimation, understanding this entire world, what effect will that have on, for example, bitcoin? was a make it more, less valuable? what will happen? >> the more utility anything has, the more value that comes. this makes bitcoin more powerful. feist -- prices on fluctuating as well as they have in the past. people are trading on these markets for volatility. the makes it even more useful in commerce. that reinforces a cycle that

makes it more and more useful. it, the people using more useful it becomes. not asle that are familiar with bit -- cryptocurrencies tend to think of it as bitcoin. it's not just bitcoin. there's different kinds of bitcoin, different kinds of currencies. could you explain -- what's the current -- different between bitcoin and bitcoin cash, and why should we care? >> i was the first person in the entire world to invest in bitcoin startups. the bitcoin i got involved with what you send money anywhere .nstantly that's nowhere true -- that's not true anymore. you to cash still allows -- do all the things bitcoin allows you to do in 2011-2012 into 2016. bitcoin court costs five dollars

every time you want to use it. actually sold the majority of my bitcoin coins recently and not bitcoin cash. bitcoin cash outperformed bitcoin core significantly. arend the world, they scrambling to adopt bitcoin cash. i'm concerned with markets right now. the price of bitcoin core is going crazy. a lot of people don't understand the utility behind it, and are buying it because they see the price going up. they're chasing it and not understanding it, where's the people that are understanding it -- are bullish on bitcoin cash. >> bitcoin core, to that point, is over $12,000 and is going up and up. where is it going to be in a year? will people discover this is not as useful as it described, and therefore, will come down significantly? >> i it go up -- might go up more.

people like to chase bubbles. it might go to 20-40,000 dollars before a correction. it's hard to know. coming up next, automobiles and patents. this is bloomberg. ♪

♪ david: when it comes to automobiles, all the talk is on this vehicle. that means a lot of new technology. , getting past record rates, but they are also learning what happens to silicon valley. they fought a lot, a lot of litigation. they wanted to get together, license to one another, and play nice. you are litigators, you know what this means. >> this is fascinating to me. this shows what detroit had over ways.n valley in so many

silicon valley was struck with hundreds of millions of dollars in legal bills. yes, i personally am aware of the incredible expensive legal bills. detroit has learned from that. they're saying forget it. david: a lot of that litigation ends up with ceos. theiry could set aside egos and play nice, they could get more money, i think. >> they are up against silicon valley. perhaps they could have common enemies that they could go after and say, we have production chops and a patent. >> coming up in the next hour, a chief u.s. economist. we will look at the jobs report tomorrow. this is bloomberg. ♪

-- so fast -- congressional

the corporate tax rate may not be cut to 20% after all. maybe it is not the deadlines of deadlines after all. negotiators say they're willing to get theresa may more time to iron out a compromise on the irish border. weting everyone to work -- look at what tomorrow's jobs numbers for november could mean for the fed's rate path. i am david westin with lisa abramowicz. good to have you. alix steel is off today. they will check on the markets. lisa: we are looking at not an incredibly -- the nasdaq up with tech stocks -- docs showing -- stocks showing optimism. the 10-year is unchanged. the british pound is declining, weakening against the dollar. crude is up a little bit, but

still below recent highs. and you have the yield curve, which we cannot help but keep watching as it compresses narrower, the gap between two- and 10-year yields shrinking. david: incredible shrinking yield. --e for the morning brief will get initial jobless claims in advance of tomorrow's payrolls numbers. comfort data is out. at 11:30 a.m., president trump meet with republican senators, then later this afternoon he'll will get together with members of the congressional leadership in the oval office. all this week, there turned work on a compromise to overhaul the tax code, and working a copper mice to keep the government open -- compromise to keep the government open. you want to turn to kevin

cirilli to take us through all of this. tell us about the tax overhaul. later today, top democrat chuck schumer and nancy pelosi will be meeting with president trump at the white house, and it is likely they will talk a bit about tax reform, but more about a potential deal to avert a government shutdown. lawmakers are still being named to the so-called conference committee. things are moving along. the public it's want to get this done -- tax reform, by the end of the year. they have to address the looming potential for a government shutdown before the clock strikes midnight tomorrow to keep the government open. this, butkeep saying i get the sense they are not as worried about it. they seem very sanguine that they will get some sort of extension. kevin: you are right. in the short-term, they are not concerned about it. later today, the government -- they will vote on a two-week funding bill that would kick the can to december 27, and i am

hearing the senate will on thately move to vote two week extension known as a continuing resolution. all that means if you're outside of washington is there won't be a government shutdown when the onck strikes midnight friday, but then they have to do it all over again on december 22, and that is when things get interesting because thing -- immigration will come up again. lisa: i love it. no one on capitol hill is concerned about this, and no one in markets -- you asked him about this -- nobody cares. later today, we will hear from al franken, possibly announcing his resignation. are you hearing a lot about that at the capital, and what is the mood like right now? kevin: yesterday i spoke with a senior a to senator elizabeth warren, the democrat from massachusetts, a close ally to senator franken in the upper chamber, and what the aid told me is there have been several private conversations urging

senator franken to step down and democratic support for senator franken has deteriorated. before coming on here, bloomberg reporting off of other reports that senator franken expected to deliver a floor speech later today and announced his resignation. david: -- you: kevin cirilli, thank for joining us, and for all of your hard work. kevin: thank you. lisa: we want to turn back to the gop tax plan. it sent equities into friends is. tech stocks took a big hit. it appears the route has taken a pause with the s&p closing at little change. joining us now to discuss it is vadim zlotnikov. a chief investment officer. thank you for joining us. it is very hard to read much into the recent fluctuations in equities. i want to start with the next year and what the consensus calls are, and whether you agree or disagree. so, i want to start with the

consensus that there absolutely will not be a u.s. recession next year. vadim zlotnikov: you are absolutely right. that is the consensus. it is against that belief you want to measure all of your predictions. lisa: that is number one. number two, u.s. equities will continue to do well next year. vadim: mmhmm. lisa: more room to run on the equity side? mizuho securities i think currencies continue -- nine vadim: i think currencies continue to appreciate. in china, it is far lower. the fed will keep raising rates, possibly four times next year, and that will not disrupt anything. vadim: ok. lisa: that seems to be the consensus right now. vadim: i think you have summarized it well. one potential cork. -- cork. we have had a massive diverges between winners and losers not

just among consumers, but among corporations, and we have had growth in what people have termed zombie companies, companies that can barely cover the interest rates. what is interesting is everything from a tax bill to potential rising unit labor cost to what is happening in the market is actually bad for those companies. what is interesting about that, to the extent the competition intensifies and unit labor costs start to rise, those companies could see doing currencies, and other they will be acquired or they could result in widening credit spreads. david: i want to make sure what it is. the cash flow is not enough to cover the service. vadim: does technical definition. david: how big of a problem is that? how many companies? vadim: if you look at the exact definition, it is about 10%. lisa: of all u.s. companies? vadim: of u.s. public companies.

lisa: that is huge. david: and that is just a technical definition. lisa: can you give us names? vadim: they are smaller companies, that off the top of my head -- david: that affects the calculus. the debt service can go up. vadim: there is some refinancing risk as you pointed out. financial conditions start to tighten, but there is another more subtle problem. if the tax bill passes, who does it benefit -- companies that pay taxes. it may hurt companies whose interests service payments are more than 20% of their income depending on what provisions go through. lisa: the more highly leveraged. vadim: yes. all of a sudden you have a double whammy. one with these companies with the inability to serve their interests are facing interest -- increasing competition because competitors will have more money and they might not be able to deduct all interest. investor, how does

this knowledge that 10% of public u.s. companies are zombies and could face serious refinancing trouble should interest rates rise -- how you position around that? david: one thing you do is you go long bankruptcy. lisa: you are pro-lawyer today. vadim: that is interesting. you can bet onis m&a. those companies could get acquired. the other one is you could start to prefer equities over high-yield credit. those are some of the practical ways you can start to position for the potentiality of this happening. david: if that is right, the spread on the high-yield should be widening. are you seeing that? vadim: not yet, and you won't really see that until you see signs of distress. thus far it is limited to the retail sector and a couple others. lisa: in other words, multi- asset strategies -- heavy started to move underweight, high-yield yet?

when did you start? vadim: about half a month ago. lisa: are you continuing? vadim: yes, we will continue through next year. david: what happens through the search for yield the -- people went into high-yield for that reason. would you go for high-yield? you can't -- vadim: you can access yield outside of the u.s.. there are still some places to get yield, but it is shrinking yield. it is expensive. it is one of the most demanded commodities out there. david: that is exactly right. vadim zlotnikov will stay with us. social democrats meet to gauge support for angela merkel. live from new york, this is bloomberg. ♪

bloomberggs: this is daybreak. . am taylor riggs job cuts are underway at general electric. ge plans to cut 12,000 jobs, the workforce. most of the jobs will be outside of the u.s.. ge has been struggling with the downtime in the gas and -- downturn in the gas and coal market. growing,eeps on growing through the $15,000 level. it just got a boost from the successful test of the lightning network that will provide a new way to pay with bitcoin. comcast isreason battling disney so hard to acquire film and tv assets from 21st century fox. according to persons familiar with the matter, comcast wants full control of sky, the british pay-tv provider.

that is your bloomberg business flash. david: it has been to a naff months since the german elections, and chancellor angela merkel does not have a majority government to rule the country. she's in the midst of trying to assemble a grand coalition with the other main party, the social democrats, who were holding a convention where they will take up a resolution i live a should go ahead with talks with angela merkel's christian democrats party. we welcome our colleague from berlin. take up this resolution -- it is our understanding that is it ok to talk to angela merkel. is there any doubt that will pass? >> hi, david. we do not know for sure. they are debating it a few miles away in berlin, but as it looks, it will probably go through, but it will be open-ended talks, so we do not know if it will lead

to a grand coalition or just be a toleration of the minority government, for example. david: go exactly to that point. let's assume they say go ahead and talk and put together a coalition. what are the main obstacles between where we are now and having the coalition put together? the social the democratic members are very -- deeply unsatisfied with the lost grand coalition they had because they lost many votes. there are many people that think it would be better to go into the opposition. so, the party leader has to make sure that he is backed up by the party when he is entering these talks. he basically has to say look, guys, i'm starting these talks, sure we will for enter a grand coalition

depending on the content we get through with mrs. merkel. david: in the meantime, what is europe? with just take a long time to put the coalition together. i heard it is maybe the spring before they get it done. how does it affect things like what mr. emmanuel macron is doing in france? arne: it is a really big problem. i think europe? just take a long time to put the coalition michael right now is t -- merkel right now is not able is gettingmacron nervous because he feels his reform agenda would not have enough time in the end. today we have the story of the bloomberg terminal that macron called schulz up and back him to join a coalition again because discussed.form to be david: that is arne delfs coming to us from berlin. lisa: it is interesting to me because the question here is one markets will care. with us to answer that is vadim .lotnikov

you do not care, do you? vadim: of course i care. i am fascinated by german politics, but the markets will not face heat until you see softening of economic data. in germany, confidence remains strong. unemployment remains low. there is a belief it will get resolved and it will not get resolved in a draconian manner. lisa: talking of germany and economic factors in particular, i'm looking at a cpi poised to end the year at 1.7%. next year it is 1.6%. we are seeing actual inflation -- actual growth. i am just wondering, this raises the next question which potentially could have a much bigger market impact -- the ecb -- at what point do they say wait a second, now we are actually saying close to a 2% inflation rate, do we need to have negative deposit rates?

vadim: this is going to be the critical question is a move into the middle of next year. and right now, as you pointed out earlier, the markets are fairly complacent. they believe the markets will not rise that much. lisa: fairly complacent? that is what you would describe this market as? [laughter] vadim: as a move into next year, they look like they will stop qe and rate increases will not take place until 2019. much of it is predicated on labor slack. what could the market be missing? there is an enormous skill mismatch. even though the unemployment numbers are high, the number of viable job applicants is quite low. so, to the extent we start to see unit labor costs and wages start to rise in germany, particularly europe and more broadly, that could shut the market. david: give us a compare and contrast -- u.s. equities versus developed markets. i'm going to put up a chart

here. 9420. it shows how the stock markets have done. this is a flux you are saying in this of jura paint -- -- is what you are seeing in terms of german growth. the blue is the emerging markets. does that reflect what you are seeing in the economies? vadim: it is interesting, if you are to take a look at a much longer term chart, you would see u.s. outperforming by the highest amounts ever. so, this year, honestly, they are all essentially in-line, reflecting a lot of hope for the u.s. tax cuts and potential stimulus, and some uncertainty over china reflected in some pullback in emerging markets. talking aboutwere how we are starting to see inflation picking up. jpmorgan said they could see the ecb decided to lift deposit rates next year. do you agree? vadim: it is possible.

lisa: is it, because they have to taper first? vadim: yeah, it would have to be predicated on quiet, on significant wage increases. lisa: global happen to a market if that were to happen? vadim: a few things would happen -- the euro would strengthen significantly, which is not something that draghi or anybody wants. i am hesitant to call for an increase, but if it were to happen, it would be a surprise to the market and a negative to the equities. lisa: dril-quip, what is your most contrarian bet coming into 20 -- real quickly to what is your most contrarian bet coming into 2018? of 2018,rough the end look at the most crowded stocks. they delivered extraordinary returns after underperforming leicester. i expected to under form into

2018. lisa: negative on apple. that is a bigger. thank you, vadim zlotnikov. really appreciate you being here. vadim: my pleasure. lisa: coming up, will there be a murdoch in disney? fox ceo james murdoch could take a role at a rival entertainment giant. more on that next. from new york, this is bloomberg. ♪

21st: rupert murdoch's century fox has been in talks with various media companies about selling some of its most valuable assets, and now there might be something of a bidding war in the works. to explain it to us, we welcome paul sweeney, the man returned to for the media. paul, explain this to us -- comcast versus disney. paul sweeney: let's start with fox -- some of the best media assets on the planet, and we

would never think we would see the murdochs looking to sell. everyone is considering these assets. it is literally one in a life -- once a left him. disney seems to have the inside track. they have a great balance sheet and a strong management team. even verizon has been thinking about a deal, but they are stepping back to see how the at&t/time warner brown -- regulatory thing plays out. disney has the inside track. they were the first there. there is strategic rationale from the deal. david: from the reports -- we do not know internally what is going on -- are they interested in somewhat different assets? comcast wants sky, which is a distribution platform, whereas disney wants the content, cable channels. paul: it makes the most sense for disney because it gives them content out of the fox studio, which will help bob iger to program his direct-to-consumer offerings that he recently announced.

the second thing for disney, it gives them international exposure. that is one area where they lack peers. the percentage of cash flow from outside of the u.s. is not as strong as it would be. get a sense -- break this out so i can have a flowchart in my head. there are a number of different assets up for sale with respect to fox. disney is interested in some of them. comcast wants to control the whole company. interested inis similar assets, it is just a question of which one. lisa: and there is talk of james murdoch being on the board at disney. culturally, how does that work? paul: one of the that could happen if disney were to buy the assets from fox, one of the corollary stories is maybe james murdoch, with the ceo of 21st century fox, maybe he would come with the assets and potentially become an heir to bob iger.

david: help me with this. there is really porting about the discussions with comcast and disney about the selling of aspects. the james murdoch part -- is that real reporting or is it the press speculating because it looks juicy. i worked for bob iger. i know nothing about the internal message. seems,s crazy as it nothing is crazier than the murdochs selling their company in the first place. if you are disney, the one seem, nothing is crazier than the area they have fallen short of the last several years is succession for bob. i had a nice plan in place until it was not a couple of years ago. they have been searching for a successor. they do not have one. maybe, just maybe, if james came along and proved himself and ingratiate himself, and that is the scenario for bob.

lisa: i think it is important to watch sky shares because their stock rose 3.5% on rumors comcast is going to buy them. regardless of whether these are rumors or concrete, these are moving markets today. something important to watch. david: paul, great to have you here. paul sweeney of bloomberg intelligence. coming up, we'll have the latest jobless claims numbers and what they could say ahead of the november jobs report coming out tomorrow. those numbers are coming out in about 15 seconds from now. we look closely because we have nonfarm payroll coming up tomorrow. it is a big number in advance of december meeting of the fed. live from new york, this is bloomberg. ♪

lisa: this is bloomberg daybreak. i am lisa abramowicz alongside david westin. alix steel is off today. initial jobless

claims that wendy -- and i want to get you caught up what markets are. dow jones down 17 basis points. nasdaq futures up. the tech companies are continuing their rebound. i want to flip up the charts and get a sense of what is going on cross-asset. 10-year yield unchanged. david: and we have initial jobless claims -- they are 236,000. the projected survey was 240,000. a whole 4000 less than we thought it was going to be. that is a big surprise. joining us is steve ricchiuto and our bloomberg colleague. steve, first of all, i know these numbers are chopping. we're always focused on them because the day before -- it is the day before we get the nonfarm jobs payroll. what do you make of the situation? steve ricchiuto: you have an economy that is growing at about 2.5%, averaging about 175,000

jobs. that is where we have been. at the end of the day, 175 has been the long-term estimate. david: if i am an investor or if i am on the fed, do i care about that number or the wage number? steve: you care about the wage number and where inflation goes forward. that is a critical piece to deal with. cared lessinvestors and less about disciplines and chalked disappointing economic messincreasingly up to data -- messi data? >> messi data, transitory -- take your pick. even when we got bad messi data -- messi data? news, the narrative was it is good news. now it is bad news, who cares -- we are able to shrug it off. we have been able to shrug off growth data completely.

they have not have the same effect, especially relative to relative data with the reaction and 10-year yields, stocks. that is something bank of america put out in their year ahead. we have seen markets change. the market has zero in on wage inflation. lisa: steve, i would like to get your sense. is this the truth from your perspective, that people are more concerned about an upside surprise that they are a downside surprise? steve: while you have the tax issue looming in the background, there has been less focus on where we are today rather than where people think we are going to tomorrow. when you look at the optimism people have attached to this kind of program, i think people are actually applying too much optimism. lisa: are they? steve: i think so. gop has consistently shot itself in the foot. i am not 100% sure they will pull this off. there is a lot of gerrymandering

that has to go on between the two bills in keeping the tea party in line. david: have they made it farther than you thought they would? this time it has gone a long way. tove: they decided to get the house and the senate with a different versions and then they will beat each other up in the conference committee. there is more pressure because they failed so badly on health care, but at the end of the day, they have to go back to the constituents, especially the tea party constituents and say we are spending one $.4 trillion and have no way to pay for it -- $1.4 trillion and we have no way to pay for it. lisa: we have some forecast -- j. america forecasting citigroup,gan, 3.7%, a little more pessimistic, 3.4%. stephen, can you square this with what we are seeing in the

yield curve, which is flat, flat, flat. we are seeing the front end going up, and longer-term yields staying where they are or coming down slightly. that does not seem like 4%, 3.8%, 3.7% growth next year. steve: i agree 100%. i think everyone's expectations are too high. what you will wind up seeing is higher long-term rates. the 10-year yield will go from 2.40 283% level. a 3% level. there's something to be inflation due to health care costs. i think the fed will take a lot of the punch bowl away. i love the optimism that is out there is terribly misplaced is not only can the gop screw this up, but the federal reserve can screw it up going forward and their likely to do that as well. david: do you agree with that, look? we saw the long and,. -- long end come up.

would it be screwing it up if the fed said it is ok to raise long-term rates to a heady number like two? whether they see this more as demand side or if it has good supply side effects, scanning through what the congress expects the tax bill to do, it is not like it -- it does not look like they expect more than a demand sugar high. it looks at we have used up economic slack. yields have stayed low. we're still getting this big stimulus. we not expect growth to top three. lisa: i want to get your point is, you think the fed -- to your point, you think the fed can take away the punch bowl. deutsche's blank -- deutsche bank forecasting four hikes. jpmorgan also with a call of four rate hikes with core inflation rising to 2%. are these calls realistic?

steve: if you get the tax cut, i think you will get citations of more rate hikes? lisa: are you saying you can see five rate hikes next year? steve: you could easily see that if you have a tax rate coming through. not that you will actually get them, but you look at the expectations, which is more important, because that will drive yield curve. the difference between no tax cut and tax cut is inversion versusplace at 2.50, inversion at 3%. david: it inverts either way. cycle has had a yield curve that is on incredibly flat or inverted slightly, and that causes financial dislocation that causes the fed to re-steepen the curve from the front end, then we have a whole second level of the business cycle that powers through the next two 44 years. --or four years. lisa: if you see yield curve

inversion -- that is what you are saying, you're picking it will invert. steve: yes. the inversion been causes a dislocation in the markets, and the fed eases rates from the front end. the inversion is not the story for 2018. that is baked in the cake. the real story is what happens after the inversion. everyone is going to say that will be a negative, you will have a recession, a financial dislocation that occurs. that powers you threw for another several years of expansion. this will be the longest expansion in america's history. david: one of your fans has a question for you -- how much weight should we put on the 10-year bund anchoring the u.s.? this is a different world right now. there there is no doubt is a lot of the global importance going back-and-forth in terms of the financial flows.

i think the bund right now is critical. if they tack -- passed a tax cut, you can keep that in mind. all of that is likely to begin to push up long-term rates in europe as well. lisa: you are making some fascinating points and we appreciate it. we're also hearing not just about bonds, but with respect to bonds, with respect to predictions of big banks next year. bank of america is expecting a sharp mid-year correction. it sees the s&p 500 rising beyond where bank of america does, 2850. longer 10-year, short the s&p 500 -- that is bearish considering the growth expectation. morgan stanley coming in with 2750 for the s&p 500 in the first half with peaking earnings growth. this is a mixed picture,

and kind of baked and is the if the patient at volatility is going to pick up. in, and the expectation is volatility is going to pick up. luke: we look at part of the story at some point. call me a cynic. that has to be a part of it. everyone expects the global backdrop to be supportive of both u.s. growth and earnings growth, and that is a flip side of the tax cut that you can see upsetting the apple cart if it does drive a u.s. dollar expansion and there are leakages from the fiscal stimulus. you wonder how much the u.s. net export picture will benefit from those dynamics. however, in the long run, that is still good for stocks. lisa: steve, do you agree with those productions? steve: a lot of those productions are predicated on assumptions about where global growth is going to be.

i think china will underperform. the ecb will take the punch bowl away. the federal reserve is likely to take the punch bowl away. everybody's getting too excited and too optimistic. i am not pessimistic, but i'm contrasting myself relative to the optimism. david: and china we too often overlooked. it has been doing pretty well. steve: there has been a significant route and the chinese bond market. in addition, the chinese have an pulling back liquidity rapidly. iping made it clear they're looking at quality of growth rather than levels of growth, and there are changes taking place in china that people are it fully discounting, and think chinese growth will underperform to 3.6 percent estimates that are out there. lisa: given that, do you think people are too optimistic on emerging markets, credit, and equities? steve: i think people are too optimistic on all of these markets. lisa: are you saying you are

bearish? steve: no. they will not return as much as people anticipate, and you will have a real, significant correction take place sometime in the first six months of the year, which is long overdue. valuations are expensive. lisa: in the u.s.? steve: yes. valuations are expensive phone there is not a bubble. the problem i see because of the indexation in the marketplace, i.e. the etf's, you might wind up with a bigger correction of people want what appeared it could be 15% plus -- want. people expect 10%. it could be 15% plus. david: we are not sure how that will interact. luke: in terms of how etf's would interact in a selloff, i would worry more about the target volatility and of steps of managers. that is how you get more spiral selling in short order of those folks having to pair duration and exposure to the market as

volatility picks up. that is what i would be a little more worried about. there are worries in corporate bonds that you can see that exacerbated any kind of risk aversion selloff. is it a worry? is it my top worry -- probably not. david: thank you, steve ricchiuto, and luke kawa. coming up, tax reform and if this chapter spending -- we discussed the tax overhaul push could meet for efficient should companies. bill sandbrook, ceo of u s concrete is here. he will join us to talk about all of this and more. live from new york, this is bloomberg. ♪

taylor riggs: this is bloomberg daybreak. coming up on bloomberg markets, chad morganlander, washington portfolio manager. now to her bloomberg -- now to your bloomberg business flash. gte holdings is an advanced talks. the price could be $5.2 billion. they own online gambling platforms.

walgreens and cvs in tying up with a health insurer. walgreens ceo tells insurers they do not rule out a partnership. withattles the industry its takeover of -- proposed takeover of edna. charge ifwill take a they take -- if congress passes the tax bill. that is your bloomberg business flash. david: there is a lot of talk about how to grow the u.s. economy, and the likely effects of tax overhaul and infrastructure invite -- investment. the next guest is on the front lines -- bill sandbrook is the ceo of u.s. concrete. u.s. concrete is involved in some of the biggest the structure problems -- projects

around, such as laguardia airport and the tappan zee bridge, renamed the cuomo bridge. let's start with tax overhaul, which is on everyone's mind. as a ceo, if something goes through along the lines, how will it affect your business? bill sandbrook: it will affect us in two ways. we are a full taxpayer. to the tune it gets down to 22%, it will give us extra cash to reinvest in our business. we will not dividend it back or do share buybacks. we will invest in new trucks, better equipment, expanding our presence in new markets. we will reinvest that market. the first point is to the extent 2.5%,t helps raise gdp to 57% of our businesses in nonresidential, commercial, non-if the structure -- what that will do -- a better economy helps all of that building in

major markets, which is more impactful to us, opposed to an infrastructure bill. david: there is a lot that is important. start with the first one. you will invest that in your business. that is something people are disputed. -- disputed. what happens with your shareholders that say why do you not give it to us? bill: we will grow profits. lisa: what specific move could you make to grow? bill: extra trucks, extra volume, new markets. lisa: one thing i am wondering is is this tax plan enough in your ping to get u.s. growth to where you expect it? months back we talked about infrastructure. we were expecting it at the structure cutting plan, and there are questions about whether the u.s. government can do that given the deficit. what is your sense, given the talks you have had with people in washington? bill: take a look at our

business. it is not dependent on infrastructure. our profits go into the structure work. it affects a much larger percentage of our business. we do not depend on federal government spending. our profits this year with any gimmick if the structure spend increased 34% year over year. there is something else driving our business outside of the structure. to the extent and the future should bill gets past, and i am -- and infrastructure bill gets past, and i'm optimistic -- 26 states passed gas tax increase to fund the needs they have in their states. time something -- it is the federal government does something about that. we are in a good spot right now. gdp increasing. tax reform. more money for us to spend. --rastructure process progress in the foreseeable future. we are in a nice place right

now. david: let's talk about that and -- federal it the structure bill. -- infrastructure bill. an engineering firm -- this is what he had to say. administratione and we are hearing they will turn their attention to an infrastructure bill immediately after the passage of a tax bill. i was on the hill this morning. we are hearing the administration has an infrastructure bill ready to go, and it will expect to hear more from the white house in january at a minimum at the state of the union address. david: is that what your understanding is, do they have a bill buddy to go? bill: yes. david: how big will it be? bill: yet to be determined. we have to see on the repatriation of taxes how much they will be able to siphon that money into an infrastructure spend. we hearing $200 billion that gets elevated to make the magic $1 trillion number. lisa: will the wall be included

in that? bill: i do not believe so. lisa: are you expected to see a boost from rebuilding areas hit by natural disasters? we talked about the fires, and we have seen hurricanes. will you benefit from that? bill: to a small extent. clients in the virgin islands. david: if there is a well, will it be concrete? the president says you have to see through it. are you worried about that? bill: i'm not worried about it. distinguished a career in the military. there is a big game coming up this weekend. army won last year. what is your production of the game. bill: army 21, neve 17. david: will you be there?

bill: no. lisa: i love that he is a specific score and he is a good track record. bill sandbrook, for all the gamblers out there, he is your oracle. to buy so much for being with us. coming up, a bipartisan plan to mortgage giants is coming together on capitol hill. we will bring you the key details next. of course, if you want to check out what we are doing on your terminal, you can look at tv go. watch us online, click on charts and graphics. go to tv on your terminal and check it out. from new york, this is bloomberg. ♪

lisa: on capitol hill, a very important development, david, that not enough attention is

placed on -- fannie mae and freddie mac, are guilty the world's biggest companies if you look at market value -- they insure about $5 trillion of senatord right now, warner and senator corker are coming up with some kind of bill to reform these two the heat is that they are going to release next year. this has been hotly awaited. david: finally. this is been going on for years. lisa: it is a controversy a point. shareholders say we want to get paid back, and other people say these companies required a $187.5 billion bailout during the crisis. why should the u.s. government have the liability? these are huge companies. it is argued with the world, dwarfing. apple. largest company in the world, dwarfing apple. david: it has been assumed they advantage in the

marketplace. with the government behind them, they get favorable rates. lisa: this bill would open the market to competition, and wall street firms are excited about the process because they want to provide the money into the profits. david: the proposal is there is -- the question is can i get through? lisa: there is bipartisan will. later, chadg up morganlander and tony dwyer. bloomberg markets and the open will be coming up next. live from new york, this is bloomberg. ♪ is this a phone?

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choose by the gig or unlimited. and ask how to get a $200 prepaid card when you buy any new samsung device with xfinity mobile. a new kind of network designed to save you money. click, call or visit today. jon: from new york city, i am jonathan ferro. 30 minutes until the start of trading, this is the countdown to the open.

coming up, president trump meeting with leaders from both sides. congress repairs to pass a stopgap spending measure to avoid a shutdown. cut 12,000 jobs. the euro zone grows at the fastest rate in six years. for investors thinking of shopping in europe, jeffries says stick with the united states. as we count you down to the opening bell, let's whip through the market action. a four-day slide on the s&p 500. it wasn'tramatic -- -- it sounds dramatic. it wasn't really. features a little bit softer by 1/10 of 1%. yields down a single basis point. earlier today, it was about dollar strength. we give some of that up. states, it was a rotation that never happened. after hitting record highs, the pressure on