greatest gifts of the middle class, that is what trump calls the tax overhaul bill. does anyone know what is in it? theresa may moves forward the trade deals and an arrangement from brexit. her cabinet heads in different directions. bitcoin hits the big time. the price keeps going up. welcome to bloomberg daybreak. i am david westin. alix steel is off today. we want to check into the markets. jedi market is going strong today. green across the screen. nasdaq and s&p futures up. six tenths ofst 1%. up in paris as well as germany. get you caught up on other things happening around the world in markets.

africa is a fascinating story. votes are being counted for the election. it looks like the more market friendly candidate is going to win. the u.s. dollar is weakening against the rand. we will catch up with that later in the show. peso, a big day for emerging-market elections. it is viewed as market friendly. it is also viewed as looking at the next index down, despite the fact we are getting so much information about the tax plan, about different political developments. david: nothing well bring the vix up. let's get an update on what is making headlines. trump will do clot --

declare china a competitor in a speech. his speech will be heavily influenced by his views on trade and economic relations. he is expected to outline economic actions that could target china. in atlanta, power has been restored at one of the busiest airports after a blackout that caused thousands of flights to be canceled. power says a fire caused extensive damage in an underground facility. delta says it will operate a near full schedule today. the latest star wars movie did not disappoint. it took in $220 million at north american box office is. met the high expectations of movie fans and analysts, and was ahead of last year paul star wars -- last year's star wars spinoff.

global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. it is time for our daybreak first take, where we discuss the top three stories in the morning. what is in the tax bill? we continue to work through the tax bill. to a new phase this week as parties begin negotiations. our third story, the cme joins --a in joining in bitcoin join shiva in trading bitcoin. one of the interesting debates over the weekend was does this which appears inevitable, does it lead to growth or just inflated stock prices? i have yet to hear from anyone who says it will lead to

growth, with the exception of economists associated with the administration. >> of shows the s&p 500 rising even though the dollar weakens. does the market view it as not generating -- >> the theory is if it were going to raise growth, it would be dollar positive. it is easy to make an argument why this is good for stocks. can point to why this will cause sustainable pick up in investment. people talk about the sugar high , but nothing to increase the productive capacity of the country. will this cause corporate america to invest? how will we know what the reaction will be? >> we will not know for a while. this will change the flow of money.

it is the first major tax reform we have had in three decades. the question is whether businesses hold onto the money. the hope is they will let go of it towards their employees. that still remains to be seen. most provisions do not go into effect until next year and there are no changes to the capital gains rate. ofon't anticipate a lot movement between stocks and the end of the year. david: it is not just the dollar, but also the bond market. the yield curve is not going up. rates andthe spike in the story was fiscal stimulus and all of this spending. we see back up from the lows of the year. it is not seeing that much there. >> have you read the bill? [laughter] right along, brexit.

david: theresa may is trying to move forward. there was disagreement among her cabinet members. boris johnson wrote the government would seek to maximize the benefits of brexit and failure to get an agreement that allows divergence means u.k. cannot do proper free trade deals. what he was saying is let's not caved to these people. we want our own rules. >> how do you get all of the benefits without the costs? middle of last year. they are starting on trade talks. everyone knows how long trade talks take. they are going to, at best have getthing in place, and to to this spot, they had to agreed to punt on the irish border issue. they are really know where. >> the markets have gotten

comfort from theresa may's rhetoric. johnson throws this grenade. i am wondering, are we getting a sense of what businesses are doing in the face of brexit? are we seeing more banks transfer jobs to frankfurt and it more smoke and fire? >> some businesses are taking it seriously. we have a story out today that the eu is saying -- we are going to be watching for shell companies. you need to set up an actual , how much does it cost? foras built as a favor people in the u.k.. they are talking about it is going to cost a lot to pull this off. >> what happens to people who tried to short bitcoin? see below -- we saw

launch last week. you are seeing a contraction in the spread between the futures contract and the spot price. the blue line is the bitcoin spot price. the white line is the bitcoin futures. you can see, the white line in are going line together. you are seeing more of a contraction between the spot price. the big question to me now is, does this pave the way for bitcoin etf and does it pave the more legitimacy and institutional money into this asset class? i don't see how it doesn't.

etf, this is is no a real thing. in terms of the holy grail for industry, what is the worst the could happen? you get the wall of money going in. >> what is the worst thing that could happen? >> a lot. as easy as putting it into anything else. right now, it is difficult. down below, the yellow, the spiky lines, those are the futures trading. the blue line is bitcoin trading. interesting thing is how far behind can etf trading be? one of the issues, people wanted to do etf's.

everyone has been watching for whether or not, now that we have a derivative market, rather -- whether the regulators will on leash the ability to build an etf. coulds the worst that happen? a lot of people are in the market, expecting the worst to happen. david: thank you. great to have you both here this morning. follow bitcoin for quite a wild. breaking news on this merger. buyingnational gaming is -- entertainment. you can see shares are down. we will bring you the details. hershey has confirmed to buy ample snack brands, expanding its chocolate empire into popcorn and potato chips.

you do not eat potato chips. you would not know. >> that is not true. full disclosure, not so much. david: we will talk to adam pozen. his thoughts on tax overhaul, next. this is bloomberg. ♪

>> this is bloomberg daybreak. agreed to buy a snack brand. amplify's brand includes skinny pop popcorn. it sees the deal

adding in the first year after closing. -- has agreed to pay cash. that knocks out a smaller bid by asseos. humana is said to be in talks with equity firms to buy kindred health care. tpg would joins humana and running kindred. that is your bloomberg business flash. yes, virginia, there will be an overhaul of the tax system this year. with a vote do tomorrow to the president -- with a vote tomorrow and to the president before christmas. will it lead to growth the president has promised? adam pozen.

he is a senior advisor for the monetary policy committee and to the new york federal reserve. he leads the peterson institute for economics. he joins us from washington. want to go to this question about what we should expect coming out of this, provided it passes. i will put up a chart which contrasts two things, the value of the dollar and that the value of the stock market, which shows as the stock market has gone up, the dollar has gone down. there is an indication the markets do not believe in the growth. growth, theved in dollar would be going up. is of the growth going to outperform in other places, what would have happened without the tax cuts? that chart and a bunch of other

.tock indices have gone up it seems to say the u.s. will do fine as part of this global recovery, but it will not get that much of a next her boost. some of the democrats are underestimating the short-term growth of the tax cuts. direct redistribution to rich people. you will get more growth, plus deregulation. i don't think it is sustainable growth. it is not going to raise the growth rate of the u.s. on an ongoing basis. >> one agreed upon fact as drafted is it will help corporations by cutting the rate down 21%. in 2004, more than 90% of the cash brought back to the u.s.

was used for dividends and share repurchases. a similar type of behavior this time around? >> it is an overstatement to say huge help toe a the corporations. ,ertain small businesses certain specific multinationals will be helped. you are right, our experience , andthese tax holidays which is true for other countries as well, is most of it gets paid directly to shareholders, which has a limited growth affect. the share going investment will 2004 because we have had several years without much investment and the global growth prospects are good. over 70% toto be 80% going into dividends and share buybacks. speculate about what the

likely reaction to the said would be, should be. it have been good in saying we will not anticipate what is happening with tax reform. were advising them now, would you advise this will lead to an uptick in inflation that requires a more aggressive policy and raising rates? it is the central banks cannot or should not act in anticipation of what elected officials do, no matter how certain it seems. the trump administration ended up being lucky because if this package had passed in april to june, when we would have expected it to, the fed would have added one or two additional ofe hikes in the course 2017. now that it is happening and there will be a turnover in the leadership and membership of the fomc, now that we have had

several months of not great inflation data, the fed is going to surprise people. all else equal, you would expect a central bank to raise rates if you are pushing growth up and pushing deficits up at a time when you are close to full employment. as charlie evensen pointed out and now, jay powell has pointed out, there are a lot of reasons to think you could get away with running the economy hot. >> have you read the tax bill? >> of course not. >> to you think it will be easy for accountants to follow the text? >> i have confidence the professional accountants will read the relevant sections. there will be plenty of people who i will be depending on.

there is a lot of money at stake and a lot of getting it right. what will happen are two things will be surprising, your respective reading of the text. first, when the individual tax breaks get put back away. frontloads will be to in the first couple of years. that is part of the reason there will be a larger impact short-term. the second thing, people do not the impact will be of this redistribution. david: stay with us. we are going to talk bitcoin. is cryptocurrency heading for the mainstream. we will discuss that with adam pozen next.

♪

david: bitcoin futures started yesterday. cme futures traded 2% above the price of bitcoin compared with a 13% difference in the early stages of the cibo trading. david: what is bitcoin? is it a commodity, currency, payment system? >> it is the worst aspects of a and commodities. interesting is the demonstration -- you can have bubbles on almost anything, but

not all bubbles matter. as long as the market remains liquid to have losses, and as long as there is not much leverage in the system, which there isn't now, the damage that could be done by a bitcoin blowup is to the people full of show enough to buy the lottery ticket. it might be overly simplistic to dismiss it as another example and the fail ability willingness to buy into a bubble. given your experience, what are the discussions like inside central banks about issuing their own digital currency. not -- >> this is not about digital currency as you peoplepeared you have thinking i will get in and out

before the next person does. in terms of central banks, they have put a huge amount of effort in thinking about blockchain technology and changing the payment system. is also some of this notion if you have a digital currency, that it will be easier to get around to zero lower bound because you can play games with the value of the currency. i don't think the public will stand for that. even if you did not do that, it is more under government control. i don't have a problem with government controlling currency, but if you say i want to be in bitcoin because you want to be a theand us from government, cbe is something very different. in a nutshell, is this

the iphone or napster? napster than iphone. napster, there was underlying software others grabbed and made something out of. now we are all doing file sharing and music online streaming, or whatever the kids do. no value inre is bitcoin from the technological perspective, i do not agree with. there is no value in it from an investment perspective. david: thank you so much for being here. coming up next, brexit with the new u.k. council general to new york.

♪ >> this is "bloomberg daybreak." i will get you caught up with where markets are trading, yields rising just a touch, climbing at the highest level since september 2008 3 euro

strengthening against u.s. dollar despite the fact we are getting a more concrete tax plan in the ux. vix down. no volatility. be.le are calm as could david: theresa may, the u.k. prime minister will address parliament later today to set out her plan for the brexit transition period. if she wants britain to you leave the -- written to leave the e.u. single market while maintaining the benefits of membership. the foreign secretary boris johnson made a fresh intervention in the debate and said the government mutts -- toh seek with us is bloomberg's executive editor from london. good to have you here. we hear this and it seems there is a among the theresa may cabinet.

is that over reading it? >> it will always be difficult for her to keep this cabinet with one voice. you've got people in the cabinet that want to maintain a strong relationship with -- people like boris johnson that once a clean break and for written to be able to go it own way. for now, the cabinet seems to be telling the line rallying around -- towing the line. we are firmly into phase 2 where we are trying to work out what the relationship is going to be the going forward -- trading relationship between britain and the rest of the european union. there are many different opinions on that. theresa may will lay out her ideas this afternoon to parliament and later in the afternoon on wednesday we have the european side. they will lay out there negotiating stance and it will be very difficult because the two sides of the -- europe and britain are far apart.

you've got a lot of warring factions within cabinet. mrs. may seems to have steered the course. she got that breakthrough and benefited a little bit in the polls. people seem to think she is toughing it out. it's a difficult task, and there are tough negotiations to come. david: we also had michelle barney over the weekend saying we will not have cherry picking. what is he talking about? >> absolutely. he has been pretty hard line actually in his stance. he gave an interview in which he said absolutely no way to the u.k. to hope to have -- already in the european union and all the rules and regulations are the same. it should be easy to forge a unique agreement. the european union is saying and michelle barnier -- you have to have one of the models out there already. the european union signed up --

trade deal with canada saying you can have that and you can have one of the -- they have to agree to things like freedom of movement and the rulings of the european course of justice so they are seeking -- britain has said it is no way close enough we want to exclude financial services. that is a hugely important matter to the city of london. the show barnier really firm in his word. britain says we are early on in the process and we are at the process of everyone setting out stores and a lot can change. david: thank you very much, david merritt reporting from london. joining us for the british government perspective is the new u.k. consul general to new york, antony phillipson. he also serves as the head of international trade in north america and came to his new post after serving for the brexit

team focusing on -- good to have you here. you have the job. i will not characterize whether it is enviable or not. explaining it to us in the united states and what they should make of brexit and why they are opportunities for us. antony: the first thing to say is brexit is a process that is a result of the will of the british people in the referendum of last year. since then, the prime minister has been mapping out what the priorities will be. we made clear -- the european side has made clear from the beginning they are committed to a smooth, orderly withdrawal. the deal we reached with the european commission december the 27th on -- in brussels on friday -- now we move on to the future futurek about the partnership. the council guidelines on friday invited us to set views on that future and that is what we will

be doing and moving forward talks on the implementation period so we can deliver the smooth, orderly withdrawal. atthe clarity we will get some point, but how do you do your job now. how do you get trade agreements, how do you reassure businesses they are welcome in the u.k. when nobody has any ideas how this will play out? antony: there is no doubt that exit is a big part -- brexit is a big part of the context in which we operate. we have been doing business with the united states for decades. this is our most important trading partner. we have a trillion dollars invested in both directions and we employ one million people in each other's countries. there's a lot we can do and will keep doing in terms of building the trade relationship while we prepare for the opportunities brexit will bring us. >> does it make it harder with brexit and the protectionist rhetoric out of the white house? antony: i would not classify it as protectionist rhetoric.

all of us have national interest, but we are also networked economies. we need to engage with each other and do deals. david: what do you say to an american ceo that says i'm sorry this is too much uncertainty for so long? i need to move on with my planning and to protect myself i have to plan is if there's going to be a hard brexit. i am going to have to move london bank to frankfurt. thatnot have my people uncertain. what would you say to them about why they should work -- wait to make their decisions? antony: we are engaged in constant dialogue with the big investors. we say to them all the time, talk to us what you are feeling. --re are many reasons why part of our membership in the e.u. and the future it will be our close relationship with the e.u. to evolve andue

set out alongside the deal we will negotiate on brexit. david: what do you anticipate in terms of the past. it's taken a long time to get to this -- it has taken a long time phase.to this second you have to have ratification of 27 parliaments? antony: not to get too technical and nerdy, the article 50 only has to be ratified by the european parliament and the european council by qualified majority. that we need to do by the end of the article 50 period, which is march 2019. we need to do that by october 2018 to give them time to scrutinize the deal. we are working through difficult issues around citizens rights and the board in ireland and we will pick that up and move quickly into the future phase. david: move into it, but you are familiar with trade negotiations. they do not tend to go fast.

you are talking about 9, 10 months. that is very short time to negotiate trade deals. antony: this is where i think it is significant that it is not a normal negotiation. we start together. we start with zero tariffs and harmonized regulation. we have to address what is the future relationship and how do we make the mechanism for it and move for -- forwards -- toward it. david: do you anticipate as boris johnson's remarks were leaning towards, that you could be negotiating trade deals with the united states as you are negotiating the deal with the e.u. ordeal have to wait until march 2019 and then start negotiations with other countries? antony: we can start tracks together and the question is how you bring them together at the ends the process. we have already begun a conversation with the united states. we launched something called the trade investment working group. it's not only talking about the fta, but the issues that will be

in an fta in time. we are very cognizant of our responsibilities to the united states and we will not do anything that cuts across our obligations to the united states while we are in the you -- in the e.u. david: i am very sorry about the ashes, i know it did not go your way in australia. many thanks to antony film -- antony phillipson. >> i want to bring you breaking news. campbell's soup is buying snyders lance, a deal that represents about a 7% premium from where snyders lance was trading on friday. campbell soup up a touch and snyders lance up more than 5.5%. it seems like it is the day of people buying salty snacks. david: food stuffs. >> and hershey's buying popcorn and potato chips.

campbell soup shares are down more than 50 -- 15% so there's a question of whether this will cause a pop with the soup business with a little bit of extra salt in it. david: the demise of facebook. we will look at what the events of today may look -- may look like for silicon valley days down the road. you can tune in to our colleagues on the radio and pimm fox joins from 9:00 to 10:00. "bloomberg surveillance" and be heard all across the united states on sirius xm radio. this is bloomberg. ♪

♪ isma: -- emma: this is

"bloomberg daybreak." hippeau will join us later. now to your bloomberg business flash. a takeover today in the casino industry, -- agreed to buy pinnacle entertainment for 1.9 billion dollars in stock and cash. that combines one of the two owners of u.s. casinos outside las vegas. they will sell some of finaco's gamblingle's operations. one of the largest freight railroads in the u.s. is caught in the midst of a revolution by the death of its ceo. -- died on saturday. harrison had added almost $17 billion in value with cost cuts and scheduling changes. he will be replaced on an interim basis by jim foot.

shallow this- look year according to people familiar with the matter. interest rate tried at bank of america will likely see their bonus fall by 10%. the same team at j.p. morgan set will get bonuses 5% smaller than a year ago. that is your bloomberg business flash. david: we turn to wall street beat where we cover what wall street will be buzzing about this morning. a last-minute provision of peers in the gop tax bill with very wealthy people in line to benefit. us is one of the most read stories on the bloomberg. res names a new ceo and a cofounder moves to executive chairman. joining us is jason kelly, bloomberg's -- this is way up in the bloomberg. very wealthy people who make money off of llc's and real or ship will do all right. >> we have seen so much readership and interest in the

tax bill because it is so complicated. this flies in over the weekend really where people start to notice -- and this is around the pass-through provisions and corporations. it's pretty complicated and i think people are trying to dig in. in part, you saw from the headline, because it looks like president trump and potentially jared kushner and other people in the government as well as here on wall street would get a pretty big benefit from this. >> isn't it true that when you ask the leadership of republican senators, they say we have no idea, we don't know how it got in there. david: they have no clue, just popped up. >> if that is true, who is drafting this bill and that leaves all sorts of questions about the rest of the bill. second of all -- is there some but he going in at night -- david: i think some lobbyist is in line for a big paycheck here. somebody has done a heck of a

job. jason: part of the response the reporters got was we will get back to you on that. i think this will play out over the next couple of days. >> another story that has been playing out is leadership changes at the top of big financial companies. you broke the news about ares naming a new ceo and shifting the current chief executive to another leadership edition. can you tell us about this and the perspective around the changes. antony: this is -- jason: this is one of the lesser-known, but still 100 billion plus dollars in assets -- and asset management formed by tony rustler and was involved in the creation of apollo. aroughetti at is the ceo -- as the ceo. the founders have been longer in the tooth, shall

we say. >> they are older. jason: it is interesting these guys are getting it out of the way. one of the things it speaks to is these firms have become a lot bigger, a lot more complicated said they are not these little partnerships anymore. and i talked to arougheti rustler is they said rustler has to spend a lot more time dealing with big investors that are not just putting to work $100 million, they are writing checks for billions of dollars and they require a lot more care. david: and they are all over the world. many thanks to jason kelly. bloomberg is out with the annual pessimist guide, it takes us through what could go wrong in the economy and high on the list is bitcoin. joining us is john fraher, bloomberg's senior executive editor. first of all, let's take sure this is understood prater this

is what could go wrong over the next 10 years. john: that's right. and it's not a series of predictions. it's more thought-provoking scenarios that investors and bloomberg readers should think about after -- we have seen something critical -- them incredible -- we have seen some incredible predictions. this is an attempt to encourage readers to push their assumptions cast their assumptions aside and imagine a world in which the unthinkable might and could happen. >> let's go through them. bitcoin, what is your prediction -- not prediction, i apologize. what is your creative scenario you put out there? john: the idea we are putting in front of readers is to encourage people to think more and more about the risk to financial security. one of the things regulators -- when you talk about them behind the scenes, one thing that financial regulators it worry of

-- regulars -- regulators worry about is we wake up and a bank will say all their deposits have been stolen in a cyber heist. what would then happen -- if that is your trigger, what happens over the following 10 years? what might happen is you could see a serious deterioration in confidence in the financial system as we have right now and that would prompt people to think more and more about alternative digital forms of currency. we talk a lot about bitcoin, but there are many cryptocurrencies beyond that bloc chain. if you look at what is happening in asia, you have companies like alibaba that are right -- quite ahead of the curve when it comes to digital currencies and ali pay and think like that so it is not inconceivable to imagine a universe in which western banks take a serious blow from this and the financial landscape

could look very different. david: it really is something much on people's mind. if you take all bitcoin and put it together, it's not as big as what the fluctuation in the s&p would be in a day. something that is really big is facebook and another thought experience is what would happen if facebook really took a downturn. john: the scenario we are playing with his what happens if facebook does get regulated. there's a lot of talk about reining in facebook and other social media and getting them to except the fact that our media companies. if that doesn't happen, this trend of fake news and manipulating news, if that continues to the point where no one can really trust anymore what is actually on social media and you combine that with the polarization of political culture we are seeing in the united states and elsewhere, that could lead to a point down the line where facebook -- where the regulation facebook faces and's up being much worse than it might be if it happens now.

>> of course, the fate of facebook looks pretty insignificant if there ends up being a nuclear war and i am wondering, north korea is very much on people's wind right now. how do you see that situation playing out or what scenario should people consider as they wait to frame the negotiations right now? john: the thought we are put -- putting in front of people is what if the worst case scenario -- if north korea developed a nuclear missile capable of hitting the western coast of the united states and what if they tried and failed? what if china and president xi and president trump got together and orchestrated regime change in north korea? you combine that with the worry that is still out there about america's commitment to asia and you could see a universe where china becomes more and more important in asia to the point where the japanese and the south

koreans really start to worry about america's long-term commitment to them and they start to arm themselves as well. what -- the thought we are encouraging people to think about is if north korea did do this, it could change the geopolitical balance of power in asia in a way that is very difficult to predict, but could end up being very different from the consensus at the moment. david: thank you so much. the is john fraher, with pessimist guide out on bloomberg today. a home fit for a prince. the identity behind a $300 million chateau of louis the 14th to read that is bloomberg. ♪

♪ david: this is what caught my eye over the weekend. there is a chateau called versailles that sold for $300 million two years ago and nobody knew who bought it. fortune magazine called it the

world's most expensive home and the paper trail leads to saudi crown prince. we know who owns it, the crown prince and he has another one worth $150 million a few miles away. >> smaller. david: it is a hunting lodge. he can spell his name anytime he wants, but the ducks of arresting all of these princes juxtapo position -- sition of arresting these crown princes, there's a question there. >> what we didn't know who $4ght -- he also owns a 4 -- million yacht. he is quietly buying all these -- austerity at home and trying to bring saudi arabia into the modern world. it doesn't mesh right and is certainly not sitting well.

david: he has the money come he can afford it, you cannot argue with him buying it, but the secrecy is interesting. it's interesting whether he thought it wouldn't play so well at home. >> of course not. gotou hear about -- they've a tighter budget because oil prices have been suppressed and they have challenges and he has said we will have to take our lumps. he is not taking his. david: it's a nice little place to return to. >> a couple nice places to turn to. let's be honest. david: live from new york, this is bloomberg. ♪

♪ david: one of the greatest gifts

to the middle class, that's what president trump called the tax overhead -- overhaul bill. does anybody know what is in it? british prime minister theresa may moves forward to trade deals and transition arrangements were brexit. bitcoin hits the big time. trading cryptocurrencies futures and the price keeps going up. welcome to bloomberg -- "bloomberg: daybreak." i am david westin with lisa abramowicz. let's get -- lisa: let's get caught up. nasdaq futures up about .5%. s&p futures a little bit more than .3%. 1% andaris up more than the dax in germany up 1.5%. still strong nonetheless. let's get you caught up to speed around the world. we are watching the south african rand against the dollar,

the dollar is weakening against south african rand and we are getting votes counted in the election and it looks like deputy president -- the deputy president is likely going to be the winner. we will bring you details of the vote as we get them. chilean peso strengthening against the dollar after an election saw the billionaire incumbent win again. he is said to be more pro-government. looking at the yield curve, we can see the gap between five and 30-year treasury yields sinceing at the narrowest 2007 so we continue to see that -- how do you want to interpret that? lack of optimism? david: at least skepticism. let's get an update on what's happening outside the markets. emma chandra is here with first word news. emma: president trump will declare china strategic

competitor in a speech today on national security. according to senior administration officials, the speech will be influenced by his views on trade and economic relations. he will outline potential economic actions that could target china. in chile, the billionaire has been elected president. he won almost 55% of the vote and pledged to reverse 4 years of sluggish economic growth. the latest star wars movie did not disappoint. " took in $220 million at north american box office in opening weekend. then that high expectations of movie fans and analysts and well ahead of the opening of last year's star wars spinoff. global news 24 hours a day, powered by more 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. david: it took nearly a full

year, but it looks like the trump administration will get that taken legislative win -- big legislative when it has been hoping for. -- the overhaul package will be ready for the president's signature by tomorrow. -- by the holidays. the compass point director of policy research -- take us through the main points in this bill that we expect to see tomorrow and what surprised you? >> the main pillar of this bill is a permanent reduction of the corporate rate from 35% to 21% effective next year. there are also a slew of temporary provisions on the individual side. most of which would expire at the end of 2020 five. when we look at what surprised me, i think the main thing is how quickly this bill moved.

it is historic. it is sweeping, but also riddled with legislative landmines and things i think are going to be tricky for lawmakers to navigate in the years ahead. for example, the child tax credit and the salt deduction cap are not indexed for inflation. the cap on business interest deduction will become a less generous metric after 4 years so you can invite me back and we can talk about the cliff in 2021. lisa: we are marking it in our calendars. go ahead -- isaac: please. lisa: there have been allegations this will imeentially in five years' t be an increase for individuals. and a tax break for businesses. you think that is accurate? isaac: it is factually accurate when you read the bill. most of the key individual

changes are going to expire at the end of 2025. the pass-through changes, the salt deduction's and the actual individual rates are set to expire. the question then becomes will congress reauthorize these? the republican that and one that i think is a good bet is no matter who is in control in 2025 , there is a hilar -- higher likelihood of individual rates being extended rather than corporate rates. david: look forward and tell me what history will tell us about this legislation in this specific regard. i saw a list over the weekend of major legislation and public support for it. this is something like 32% of the country say we really need this happening. what will history say about why congress did this? isaac: i think the history is going to view this as a political bill rather than a policy bill and i think that we are going to spend the next few

years working through some of the unintended consequences and problems that will arise because it was done in a one-sided fashion just as we have had to do with the dodd frank act and the affordable care act as well. this is the problem with legislating on a partisan basis. these things are seldom permanent and they usually lead to problems down the road. ok, thank-- david: you so much for being here. that is isaac boltansky reporting from washington. republicans may be predicting tax plan, from the but the federal reserve has been skeptical and the bond market seems to side with the senate. let me get this chart on my bloomberg -- it will show the s&p is the blue line going up to the right. andwhite line is the spread the extent to which of has been flattening. the bond market is a little

skeptical. we welcome markus schomer, fine bridge investment's chief economist. as you look at these markets, how is it there's such a disagreement between equity markets on the one hand and what appears to be the mac it from -- message from bond markets? markus: the equity market will probably be the biggest beneficiary of the tax plan whereas the odd market looks more on the input -- economic applications and you cited the fed and the bond market, many economists do not believe we will get significant growth. the reaction of a flattening yield curve and arising stock market is consistent with what people think. david: the question is where is the breakdown between republican leadership and there are a lot of business executives very much for this -- where is the breakdown in how this tax cut will affect investment? what they say is because there will be more money available

they will invest more money with more capital spending and more money for wages and employment. what's wrong with that? markus: it's not necessarily something is majorly wrong, i just think it's overstated to read it comes at a bad time in the business cycle. one side of the government's using -- government is using taxpayer money to stimulate the government and the federal reserve is tapping the brakes with interest rates. let's put aside whether you think it's a good plan or a bad plan. nearly $100nages billion. what will change your investment thesis? as a company are you changing allegations -- allocations as the likely passage of this bill? markus: no, i don't think we can say we changed our allocations. we have been looking at the world for a while now as

changing from this period of excess capacity since the great it'ssion to one where finding more balance. that's not related to the tax bill, that happened two years ago and we have been invested in investment related storylines for quite a while now. we saw from the beginning that this would not only be good for the u.s., this would stimulate growth in asia and emerging markets through high commodity prices. that is the storyline we have been investing in. david: you talk about the irony and the tension fiscal on the gas pedal while monetary is on the brake.what is the likelihood for the fed when they look at this tax bill? does it likely lead to faster rate hikes? markus: if it works the way the government intends it to, yes. you saw the fed meeting last week and there was very little evidence that janet yellen or

people on the committee believe growth is coming. we got an upward revision to 2018 growth rates, but nothing down the road and janet yellen pointed out she believes the median impact will be stronger growth in the long run. i don't think the fed believes growth will come from this. david: markus schomer will be staying with us. coming up, we take a look at the biggest risk to the global economy in 2018. this is bloomberg. ♪

♪ emma: this is "bloomberg daybreak." campbell's soup agreed to buy snyder slants. it will pay about $4.9 billion. -- salty snacks

have been welling -- selling well and campbell's soup has been in a slump. hershey's is also buying a snack brand. it represents a 71% premium to the friday closing price. it includes skinny pop popcorn. hershey says they see the deal adding to earnings in the first year following the closing. and the netanyahu says his -- benjamin netanyahu says it will do whatever it can to -- tax -- job cuts. 1700 have been cut in israel. that is your bloomberg business flash. tavid: bloomberg news' lates annual pessimist guide is out. -- a potential trade war with china and the possibility the u.k. labor leader jeremy corbyn could win a snap election with

his socialist agenda. still with us is markus schomer, pineridge investment's chief economist. this pessimistic guide is a thought experiment, what if this happened, not predicting these things will happen. as you look forward, what do you think are the major risks? markus: other than really interesting speculation about things like jeremy corbyn, which i like. the major risk to investors i think is the broadening of the global rate hike cycle. it's advertised and not really coming as a surprise and everybody knows the fed is raising rates. everybody knows that ecb is winding down the qe program. if you look at 2019, that will probably be the first year since 2010 we will have no net money printing from central banks. that's a long are where markets in the global economy functioned on the printing of central

banks. that will go away as a safety net. once the ecb raises rates, we 5, 6, 7, 8 central banks going at one time and that will be a wake-up call for companies that look at the financing cost of the debt they have accumulated. david: as you look at that possibility and it looks like perhaps by the end of 2018 the ecb will at least stop buying new bonds. which is more important, managing the balance sheet and reversing the huge balance sheet or raising rates? markus: raising rates. the impact of the balance sheet was hard to quantify on the way up. i think it will be difficult to quantify on the way down. at kind bridge, we don't believe ridge, we don't believe that's the case because it's advertised and it should be priced in the bond markets right

now. the raising of the rates is the classiest example. not just a one-off. companies know the financing cost is going off. default rates will rise and i think a classic cycle is coming. lisa: when the water washes out, what will we look back at being the largest bubble? will it be high-yield bonds, emerging market currencies, bitcoin? markus: i think we have a couple of candidates. lisa: let's hear them. markus: i haven't thought about the product of negative yielding debt come i think that will be of footnote of this cycle. the yield will go up eventually and normalize and we will look at can say how did that happen? i think bitcoin is the defining bubble of this business cycle. all business cycles have one of those really crazy asset bubbles nobody understands exactly why the prices are going up and i think we are right in the middle of one. bitcoinhy isn't

somewhat insulated because there isn't that much engagement with the real economy? there are some people investing a fair amount of money, but the total value of all the bitcoin -- markus: it is not a bubble in the sense of 2008. if this bursts, not much will come of it in terms of economic damage. it's the fact we all talk about it. if it penetrates us on the professional investment side, i think then we get into trouble. as long as it stays outside and we define it as gambling more than anything else, i think it is the head line -- headline bubble for this business cycle. 9.7 trillion dollars doesn't, to footnote to me. i'm trying to imagine this unwinding in a way that isn't profoundly damaging. an orderly unwind of this current regime or is that even possible? markus: i do see an orderly

unwind because at that ends the day if you are buying those assets, it doesn't matter -- you are buying them on price. lisa: you get your money back. markus: there is no reason to buy any asset that yields 0.05%, for example. you are not buying this for the return, you are buying it for some other reason. that's the reason people buy unyielding debt. i don't think any economic damage will come of it and that's why am thinking more footnote. david: taking your view of 2018 and 2019 and the risks you identified, what does that tell pinebridge about the way you identified -- position yourself? well, first of all, you have to get all your forecasts lined up and show the degree of confidence we have in them. for example, we don't think there will be rapidly rising interest rates.

pinebridge is staying with the growth story because the risks will not materialize this year. it too early to take our clients out of the growth story we are seeing everywhere. people like myself and the role islay, my role right now really important because i'm looking for the red flags. the time to start up of the red flags in our portfolio and wind down the risk and get positioned for what could happen if central banks raise rates on a more coordinated basis. david: not quite yet, but it is coming. markus: not quite yet, but it is coming. lisa: we will check back with you in 6 months. david: thank you very much. coming up, cfx loses a railroad tighten. what the death of the ceo means for the company. this is bloomberg. ♪

♪ david: the railroad industry lost a giant over the weekend. the news of the premature

passing of hunter harrison. he was in the middle of another railroad turnover at csx. our colleague new harrison well and joins us now. welcome, eric. i know you knew him very well. why was he such a force in the railroad industry? eric: he was a character like few others. he was ad with the -- tennessee boy and you could hear it in his draw and he was dynamic. he turned around three carriers and he was at it again at csx. he was a singular figure in railroading, like few other industries. not a visionary, not elon musk or steve jobs, but a master operator. how do you define mastery? it is with something as boring as the operating ratio. this is operating expenses as a percentage of revenue.

it's really the most important measure of profitability in railroading and he managed to tens ofthat down by percentage point at illinois central, canadian national, and canadian pacific. lisa: he did it in some controversial ways, no? markus: not so much -- erik: not so much controversial, he ruffled feathers. he was a fan of precision railroading, which is about asset -- i need to make them pay as much as possible. previously, the customers to find the railroad schedule and he said, forget about that. we are going to define the railroad schedule and force customers to conform to the way we want to run the railroad. for sure, it is disruptive, but ultimately it's much more profitable. lisa: if you think about it from why people would be upset. if they live in a small town and have a railroad that stops their three times a week and they cut

service, not great. also not great, the unions and his relationships there. erik: the tale of the tape is what happens to shareholders. that is what happened. at cn, for example, canadian national, the stock was up 390% in 9 years. at canadian pacific, it was up 116% in 4.5 years and at csx, let's bring up this chart. the stock was up more than 60% through friday when we learned of his illness and on saturday, subsequently with his passing. the white line is railroads. the blue line is csx and you can see how hunter harrison's presence made this in or miss difference. -- enormous difference. you can draw a somewhat morbid conclusion that the blue line has further to fall today because he is no longer just ill

, he is no longer with us and it's up to the new ceo at csx to live through his legacy and that is a tall order. david: i didn't know him the way you knew him, but i will tell you why he is near and dear to my heart. we in the media tend to get caught up with the visionaries. we don't pay enough attention to the people that do the blocking and tackling of cost control and making tough decisions that that you are right, often are not popular, but do return value to shareholders, especially in a mature business. xy as something as unse railroading. he was the guy who bill ackman used to turn around cp in a proxy fight that was enormously profit -- rewarding to shareholders and a disciple of bill ackman is the guy that brought him to csx. this was exceedingly controversial, not so much because of harrison, but because of the one who waged a hostile

battle to the board to dump the old ceo to install harrison and guarantee $84 million to harrison in stock he was giving up at cp and promise to hundred million dollars in compensation. had hunter lived long enough, he may have set -- he may have had $300 million out of csx. erik schatzker, thank you so much for being with us. coming up, we are talking bitcoin. we take a look at the cryptocurrency's first few hours of trading on the world's biggest futures exchange. live from new york, this is bloomberg. ♪

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lisa: let's get you caught up with the action across markets. you can see alan greenspan across the screen. dow jones up nearly 7/10 of a lowsnt, up from earlier s&p futures up and nasdaq up nearly .5. gone elsewhere. you're seeing a little rise in two-year yields to the highest levels since 2008. you're seeing euro gain against the dollar despite the fact that tax plan heading toward a passage in the u.s. no, of course, there is volatility anymore. the vix at one point touching lowest since november 3, the lowest level on record. so we are still down near record volatility. david? david: now to find out what's going on outside the business have "first word news ." emma? emma: thank you, david.

a c.i.a. warning that thwarted a bomb the. the two leaders spoke for the second time in four days russia helped disruptip a group planning bombings around st. petersburg in russia. conservative sebastien kurs has been sworn in people's party struck a deal with the freedom party on friday coalition has come out with a program designed to preempt concerns austria could stray or crush the state at oneas been restored of the world world's busiest airports after a blackout. thousands of passengers were left stranded. the local utility, georgia power causeda fire extensive damage in an under ground facility. the atlanta airport's biggest carrier, delta, says it will operate a near full schedule today. in more than 120

countryies. this is bloomberg. david? david: thanks, emma. bitcoin is grabbing wall street bulls by the horns make its trading debut on the world's biggest exchange last night. the to take us through first few hours of trading is camilla russo who reports on bit us here on bloomberg welcome back. what do we know so far? earlier i going. volume has been pretty good compared with the civil contracts. we have around 68 million traded in the first, say, half of the trading for the c.m.u.e. trading of the full the civil contracts. the spread between the futures has narrowed spot which indicates liquidity and .rice efficiency limits, theprice

circuit breakers have been that also indicates a smooth smart for c.m.e. futures. lisa: does the idea that the c. this,s getting into does it mean that real money that big institutions, are orally getting into bitcoin is this just allowing the expected leaders that have been get-go as sorte of an easier way to do it? camila: i think the biggest beestors into the cme will more professional traders and institutions wanting to access which they've been watching all year. rally inn this huge bitcoin but investors have been these exchanges crash, get hacked a lot, trusting digital wallets. have athe first time we more fragile experience for institutions. speculatet see some

ors drive prices but accessthis also allows to institutions. david: thank you so much. camila russo reporting on bitcoin. and for more, we're joined from by bob fitzsimmons, wed bush securities and head of futures. we just heard a brief report. explain to me the difference for thismo and cebo purpose? bob: thank you for having me. it's a pleasure to be here on a a latemorning after sunday evening. so the differences between the exchanges are really the -- the cfe is geared more towards retail offering. it's one bitcoin per contract the cme is five times that but i think camila touched upon important points. but the overarching theme i'd volumespoint out is the we're seeing this morning don't necessarily reflect the level of seeing. that we're

so i think we've been kinked -- conditioned over the years to launches as the kickoff of the starting gun of a race. and that's not the case here. a highly unusual launch for these products. roomnk they have a lot of to grow. there's enormous interest on the on the trading side. lisa touched upon it earlier. lows, when youg look at bloomberg and the equivalent of the bitcoin, where lisaaround 90, just touched upon the vix is at all-time lows were three-year can see why there's enormous interest in these products. lisa: bob, from your perspective a trader of bitcoin futures, is it particularly lucrative because of larger ask spreads? is this a profitable trade to be in?lved bob: well, you hit it on the head. community is a trading community. fact that there's a larger bit so spread, 9 fact that it's volatile, makes it very interest

ing to the chicago community. office is a beautiful, art deco building, majestic building salle street,la filled with traders. you can feel thissing coming of like "fe, sort night of the museum" waiting line.is product to go on as we go back to the volumes, there's a lot of work to be done what makes this rollout unusual first, the large banks haven't been there at the inception of the trading. that.ld touch upon the second interesting dimension of this product is when you look launches oft of products, typically you look at the launch of the the ccernible] or american e and the relaunch of the russell product, typically the participants in those markets have already traded futures and they've already traded the cash market. what's unusual about this, even in our own firm, our expert, really worked with sherry and i think that's sort of emblematic of the industry. talking to the

bitcoin cash participants, they're not really familiar with the futures. educating them and they're getting familiar with concepts like efps and ecrps and they're getting acclimated to the product, in the futures arena. more so if this is profitable for brokers, it also is riskier. risk thatu mitigating you possibly could end up on the wrong side of a trade that could seenvery fast, as we have with bitcoin. bob: sure. we'll talk about the risk and come back to the profitability. an industry perspective, one of the concerns has been -- and you've had some people out there letters, really, and get to the product in terms of the riskiness. both the cme, the occ been very cautious in the have beenarkets that put out there. so if you look at the tradition al futures products, a product probably $100,000 contract, $2,000 allows you to participate in that. a 50/1 ratio.

if you look at the -- you have ratio. in this product you're seeing about 2/1. and furthermore, firms like ourself have put further restraints on it. so there's very little leverage. leverage gets you in trouble. concerned about protect ing our clients, concern ed about protecting the industry, the market integrity, and obviously there are clearing househe s now, get back to the the bitility, certainly ask is attractive which may explain why some of the bitcoin, cash or spot market, don't have a large interest in coming arena.e futures they are happy with the bit ask. they think of them as sort of a currency exchange when you get off heathrow airport there, they have mow open live people liftingtheir bids, their offers they're not looking for competition. so the chicago community, the firms are looking for this volatility, these larger spreads that are very

interested. the cash markets are slowly getting acclimated. is going to be, to use an old cliche, it's going to be a marathon. is not a sprint. and we have a lot of work to do playucate the bitcoin spot ers in this arena. bigd: you mentioned the banks. from listening, they're a bit hesitant. they're not saying no, not yes yet.ly saying do you see any of the big banks coming in yet? them?en do expect bob: well, it's fascinating. a couple of weeks ago the story is keb there hey, why bush -- wedbush listing this product? man, not really a story. to big banks are tantamount man bites dog. is it really a question that they're so big and large they for the get ready product with such a slow or period?pup an aircraft carrier out of the pacific trying to turn around speedboate akin to a

on lake georgia or lake michigan . a little bithing more at work here. previous segment , an interesting way to start out on monday morning, but your segment touched upon are threatened by this product. we talked about bitcoin but underlying bitcoin -- and people theory, askinga for option on these products. of this is -- all is it really a threat to the larger banks? one wanted to be provocative on an early monday after a late what we'veing, is watched last night, sunday a week or the cme and at the cfe, is that tantamount and lyft rideser and the banks are the equivalent company?xi cab i don't know. only time will play out. but it's interesting. it's going to be fun to work through this. david: if anything, that's an understatement. for sure.esting

bob fitzsimmons, thank you so much for joining us. keep coming back to is this ipod or napster? lisa: i'm struck by the fact that people want and need volatility. that's what they're looking for. they're not necessarily caring actually is people talk about how it trades, about the gaps. but not the essence of what buying.tually david: there's such pentup demand because they're looking it someplace. lisa: people have been bored and now they're excited. this is where it's at. david: someplace else it's at is e-commerce. coming up, e-commerce wars are heating up with 10-cent holdings could mean for tech investing. and as you commute in today, you over to radio, tune in you are to our colleagues from 7:00 to 9:00 every morning in the radio.ver then pimm fox joins the conversation from 9:00 to 10:00. bloomberg surveillance can be heard in new york, boston, bay area, washington, d.c., all across the united states on

sirius xm radio. live from new york, this is bloomberg.

anna: this is "bloomberg daybreak." coming up in the next hour, eric hippeau, managing partner, joins us with his outlook to tech investing. now to your bloomberg business flash. a takeover in the casino industry. national agreed to buy pin nable entertainment in stock and cash. combines two of the largest owners of u.s. casinos outside of las vegas. part of the deal, penn national will sell some of sinnacle's gambling operation to boyd gaming for about $575 million in cash. bonus a bit shallow er this year. likely to see bonus pool fall by more than 10%. teams set to get

bonuses 5% smaller than a year ago. china, 10-cent holdings in jd .com are forging an alliance take on alibaba in e-commerce and digital payments, buying a biggest one of china's online retailers for $863 million. 10 cents and jd are paying a 55% premium for the stake. that's your. bob: business flash. david: companies all over the are struggling to fend off e-commerce giants, something our spur even says could more digital deal making in the new year. ,oining us now is eric hippeau the management partner and rebel also formeran, and ceo of the "the washington post" and was an earlier investor in he's got quite a track record. welcome back. good to have you here. start with this tax reform , tax overhaul. isposing a lot of money

coming back into this country, particularly tech companies what with it?going to do eric: well, they can buy back shares but more like lie will start investing it in areas that might be like frontier technology label bit outside of their core domains. google has been doing it already apple has a good track record of this. to cut you off, but a lot of people say these google, amazon, they've already brought a lot of money back to the bond market. theyhave as much cash as could possibly imagine. why would they need this money back for these moves? eric: because they are under attack in the united states, europe.y in and there's a growing backlash against big tech. do with the russian thing, the fact that they don't know what's happening on their controls, they have no this whole privacy issue is starting to hit home. equifax. so it would be smart for them to that making investments

bolster their image, that cater to privacy and security and things of that nature. david: yet when you look at big see things like amazon buying whole foods which is, if anything, the opposite direction. tot's going bricks-and-mortar. should we expect to see more of that tech really move into bricks-and-mortars or the reverse for that matter? eric: you mentioned some of the in.anies we've invested casper, another one of our stores.es opening so you start to see digital native companies understand that consumers like to touch the product. the interaction is necessary. retail're going into the business. lisa: so when you talk about the regulatory pushback and sort of under attack aspect of tech right now, do actually think that politicians are going to regulatory action or is this just sort of going to goad the big tech companies, try to insulate themselves? eric: i don't think politicians really understand what's going on. so it's very unlikely that they

will take action. if they take action, it will guard action that won't have much of an effect. i think it's mostly the users. that's definitely science young people are moving away from the big social platforms. older americans, older people, thingsting less personal there's clearly a sign that what andpost will come back haunt you in the future. so this is a big change that's the users themselves david: so you're known as an astute investor in the digital space, particularly in the early stages. what does that tell you about where you should be look for where others and people should be look at opportunities in tech? eric: these days we look for opportunities predictable in artificial intelligence, smart apps, smart systems. we're big believers that the changingworld is dramatically. the cost of robots is going down at really furious pace. values according to

the software layer which is becoming more and more intelligent. robotsre not necessarily or ai going to replace workers. enhance theo workforce. going to make the workforce more productive. lisa: what tech company are talking about today that they will be at the end of 2018? eric: oh, boy. an interesting question. i'd have to think about this a little bit more. sorry. lisa: is there a company we're talking about right now, the reverse, that we're not going to be talking about? eric: i think your previous segment mentioned that. the chinese companies are all going to come to the united states or a lot of them are going to come to the united states. you should see the valuations in china, talk about bitcoin as a valuation, all of the valuations in china, all the ares you hear about china, made with billions of dollars evaluation. alibaba, 10-cent, all of these companies are going to be look at the united states. lisa: wait. could think that alibaba actually present a serious

competitive threat to, say, amazon in the u.s.? eric: i'm not sure they will go directly into the end user, retail sector but they will be in the infrastructure. the commerce -- already in china these companies offer payments, offer communications on a single platform. we don't do that very well in .he united states david: i was going to ask that. is 10 cents just way ahead of us of payments? you go to china and people do everything with wi chat. we do everything. we're way behind in that. eric: yes, it's surprising to me i'm not sure i quite understand why. fact is there's no reason why you can't be in the single app and do everything that you just mentioned. including making real payments as well as buying digital object s and pretty much living your life in one app. we don't do this in the u.s. reason why we couldn't. lisa: which tech company do you think is getting the furthest in the u.s.?hat in

eric: apple. pay? apple eric: yeah. you will start to make payments with apple pay. apple -- because it's such a company, and since steve jobs people say, well, apple is much.novating as i actually don't believe that. i think apple is a very strong company. think aboutyou internet of things broadly, you have it in our home with alexia, autonomous vehicles seem to be around the corner. when is it going to get to healthcare? why don't we have a device that monitors our heart rate and things like that for diabetic levels? when does that come and who leads that charge? eric: again this watch from apple already, if i wanted to -- i don't but if i wanted to -- lisa: i don't want to know. eric: exactly. i could monitor some. this is getting better and better. the sensors are getting better. getting better. the problem with healthcare is the system of healthcare is so rigid and so impregnable that

they're only touching it on the margin. david: ok, eric hippeau, thanks here.h for being coming up, "star wars" takes you away but itfar, far may cost your employer for that trip. on "daybreak," this is bloomberg.

lisa: disney shows is it t still has complete control over the force. chapter has a $220 million box office be the, poised to biggest groatsing movie of the year. evidently we lost collectively $1 billion of productivity as a result of " wars." david: it's important to establish i did not -- i'm sure

away from take time bloomberg to watch this toffee. it was not bloomberg. lisa: it did not. losing productivity. no, there was a calculation that were seven million people that took one hour to one full day off from work and that that equals to $1 billion of lost productivity. david: i'm not sure how the out but it does illustrate how phenomenal this movie is and this whole franchise is. i think it's $1.4 billion they're expecting worldwide. and on.go on and on it's extraordinary. lisa: and it does show that a bit of powere that sort of comes on the heels thehe question purchase of -- david: and i believe the number two movie, which was way behind, movie, a 21st century fox. so they're going to have a lot. watch it?you david: not yet. i love it i just didn't have the time. i was getting ready for christmas. lisa: you were being productive. i will say when you look at

productivity, i have to wonder. outside, everybody looks out the window and you $500 milliont was of lost productivity. you have to wonder. david: we do come up with these from time to time. hard to believe -- they make it up somehow. lisa: what about the inspiration that people feel from the force? they go back to worse feeling powered.m david: and productivity goes up because they have the vision. force.o the oppenheimerg up, funds cio and fixed income. york, this is bloomberg.

jonathan: 30 minutes until the start of trading. this is the "countdown to the .pen"

♪ jonathan: republicans unveil the plan.s of their tax the gop says they have the votes to pass it by midweek. president trump delivers a laying out official national security strategies. battle for bitcoin trading dominance continues. the cme starts trading futures week after the cebo in the market, we count you down to the opening bell this monday morning. we come in looking hot. futures positive by almost 10 points on the s&p 500 after closing out last week at an all- time high for a fourth gains.t week of the enthusiasm for this tax plan , seemingly in the markets at least, continues. fx market, dollar weakness. up -- treasuries on offer with points.p two basis in the united states it's a rally seemingly with no end in sight. futures pointing to a