Michael flynn violated federal law by omitting a business trip to the middle east on security clearance forms. They demand he provide a full list of foreign contacts. The accusations are linked to a plan they say was financed jointly by russia and saudi arabia. Michael flynn resigned in february after reports he misled its senior white house officials about contacts with russia. The hits keep on coming. The Cleveland Indians winning streak is at 21. The indians defeated the Detroit Tigers 53 in cleveland and set a new american greek letter American League record for consecutive victories. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Julia live from bloombergs World Headquarters in new york. We are seven minutes from the close of trading. Stocks take a breather. Joe the question is whatd you miss . . Release theix will tax framework the week of september 25. Julie bank jobs might be disappearing in the next few years. A former citigroup chief explains why he is investing. David gura sits down with the former secretary of Homeland Security for his thoughts on the federal russia investigation. Julia whatd you miss . The longawaited details today on tax reform. A process spearheaded i a group known as the big six, a group of lawmakers and Administration Officials led by congressman kevin brady. Brady laid outn is the ongoing process for tax reform and tax cuts for middleclass families this year. It starts with the outline that will be released the 25th and then the taxwriting committees are going to take feedback and input and produce bills in the weeks ahead. Kapur joins us from capitol hill. That was the House Speaker. I want to quote donald trump. The rich will not be gaining a all with this plan, the rich will be pretty much where they are. If they have to go higher, they will go higher. Are the House Speaker in big six on board . There is a disconnect between the rhetoric and the proposal he is actually put out. Cuts for the rate highest earners. One study found 40 of the rate cuts would go to the top 1 of earners. It is not clear how exactly that would work. He would have to change what he has talked about, which is cutting rates across the board, including for the top. It is not clear there is enough to balance out the amount they would gain. True, would they need democrats . I was glad you brought up the gap between the rhetoric and the policy. I have a question ive been meaning to ask. This is the right context. Steve bannon has been doing these interviews, complaining that the congressional gop hasnt been on board the president s economic populist agenda. Where is that economic populist agenda t goo agenda . The Republican Leadership in congress has been at odds with the president. They are more favorable to free trade, which President Trump campaign pretty strongly against. That is more what he is talking about. Proposed an had significant tax increase for the highest earners. That is a populist thing you can get people on board with. Republican leaders in congress are not willing to give that up. The president is not giving that up either. Julie we talked to mick mulvaney, who heads up the office of management and budget. He talked about president ial priorities as well. Me on myesident called way over to this interview to need to 15 at we corporate rate to drive the economic investment, the Capital Investment to get companies kobach the United States overseas and to get overseas companies to move here for the first time. Get will drive growth and us that sustained a 3 Economic Growth we so desperately need. Julie this Corporate Tax rate seems to be an important centerpiece of the tax reform plan. The president has been trying to reach across the aisle and having dinner with chuck and nancy. About that part of the tax reform agenda . They have said the package has not added to the deficit. And it should go through the regular order, not reconciliation. The republicans have not adhered to those demands. The third demand is tax cuts for the highest earners. The president is meeting with democrats. Why would republicans not want democratic support . But they are not shaping their plans for the purpose of winning democrats. It is more, let us pressure them and try to get them on board. If not, we will do it on her own. These guyse of would be helpful, particularly if they want to do reconciliation with 51 votes. He has been targeting some of the more centrist democrats. The three democrats went to the white house yesterday were democrats who were up for we election in 2018 in states that President Trump one won. These are democrats who want work with trump on some things. Ia sha julie sahil kapur. Coming up, indy wiseman and us. Semen will join where he is looking to invest in todays climate. From new york, this is bloomberg. Julie whatd you miss . . Indie wiseman focuses on the information and technology sectors. He is at the cornell tech conference talking about new york city as a technology hub. It has been in the shadow of Silicon Valley to some extent. Andy, thank you for joining us. When you look at new york and , they do have some similarities, certainly in the terms of costs. Define that new york is competing with other locations around the country . Part of the question is how you define competition. Each region can be unique. New york is clearly unique. The competition between new york and in Silicon Valley to be a bit of a nothing burger. Of the big stories in the economy right now is the extraordinary dominance and influence. Of Major Players in tech like amazon, apple, alphabet. And the difficulties companies are having in competing with them. We have seen with ring on the vine withering on the vine. How does that define earlystage companies . Andy this is one of the things different about the environment right now. Of whom you mentioned are much stronger than they have been. More profitable, with more cash. They are now schooled in the art of disruption, which used to be one of the novel things about the starts we invested. In. Tart ups we invested you look for companies that one compete with those big companies. It is one of the reasons why block chain is so interesting, tois inverted in a way engage competitive dynamics. We have been telling our investors this is a dynamic that could affect venture returns in general. Joe these companies do all kind of things, from transportation to retail to funding entertainment. Is block chain and cryptos the one area you dont see them doubling in dabbling in . Andy it is very hard for them. Block chain, all those companies are data, they collect data and use data to monetize and create business. Block chain is an open database. There is no ownership of the data. Anyone can see it. If there is a different competitive dynamic, it is the idea that companies that make their business around data cant compete against a block chain at ecosystem. This is something that has a lot of investors excited. That competitive dynamic is very different. Increasing challenges involve looking at a prospect for investment. The opportunity in terms of those that dont in any way compete with the increasing size of some of the big tech players, it as capital doesnt cut a venture capitalist. You have to offer something different. Andy that is one of the big changes in my experience. Capital is no longer scarce. Capital is the same color as yours. We have to differentiate around different things. Differentiate around very small fines. We only have one office. You have to have different access and capital is probably the least relevant one of any access. It is an incredible time to be an entrepreneur. It is definitely a harder time for vcds. Joe im curious about that, but not asking for sympathy. [laughter] will take it if you give me a little. [laughter] i am curious about the political situation. One of the other interesting things is that tech, for the first time, has supplanted the role that finance have. An industry that was really popular. Pundits and politicians talking about antitrust, companies squelching free speech. All reasons to be politically angry at Tech Companies. How does this affect the tech landscape . Andy it is interesting. I think these Tech Companies touch more parts of our lives as they grow and become more powerful. They affect people in a way that feels more miserable feels more visceral. Anticompetitive . That question is much more difficult to answer. But because they tie just in many ways, we feel the competitive because they touc ways, than anger may be expressed in many ways. We feel that competitive situation. I dont know this anger is bubbling up in the things we use every day. Julie if we do see a result of this public anger, increased regulation or antitrust action, how do you feel about that as a venture capitalist . Do think the interests of these tech giants were talking about and folks were in your position the verge who are in your position diverge . Andy if you believe that anything that enables our companies to compete better is a good thing, then yes. These companies are into competitive in ways we think they are. How would we do that . Thatmportant thing is given these companies are Data Companies and individuals were giving them our data, maybe individuals have a different right to data than we ever had before. Maybe we should have different rights to take our data with us and understand our data and have computers access our data. To call it, the right to be represented by a b ot, or api. The solutions are more marketbased than splitting a company up. Julia you think regulation is a long way off, because it is tough to achieve. Yes, butouldve said the newspapers seem to show groundswell for it. Can we count on the regulators to regulate these companies in a proper way, because they look so different . Is google a Search Engine or car company, is amazon a bookseller or provider of Cloud Services . Because they are different, what would you do . You can make a really bad mistake for consumers. It requires something different. One exercise is to think about consumers, that consumers can take data and use them in other places. Is that a solution . Julia great to chat. Thank you. Andy weissman. It is time for the Bloomberg Businessflash. Boeing will increase the number of dream lines starting in 2019. Production will grow to 14 per month. The announcement follows a deal to sell planes to airlines. Boeing agreed to a 600 Million Contract to design two new air force one planes. A former u. S. Trader has been charged with manipulating metal prices. He is part of the justice departments probe looking into manipulating currencies. That is your Bloomberg Businessflash. Julie it is time for the stock of the hour. Gas shares are up for the fifth time in six sessions. The turnaround plan is convincing wall street. Shares are getting a boost from takeover rumors elsewhere in retail. More than 2 , but they have had this enormous run in september. Oliver gapping up. Nice. I made that up on the spots. Up on the spot. This company has been through a lot, wrapped up with all the retail speculation on how the industry will fare with online competition, but they have had their own specific problems. The street is feeling good about the way the Corporate Board is outlining the strategy for growth. This means finding the highest margins, the highest selling parts of the business, and making those the focus. Let us stop into the terminal. The big topic is shifting their efforts towards old navy. I am in the Financial Analysis page. Here are the list of stores. Old navy, cap, Banana Republic gap, Banana Republic. This is what we are looking at in terms of the breakdown of actual percentage of revenue. Old navy, 44 . Not only does it take up most of the sales, but it has the best margins. They want to find that customer on one end of the spectrum or the other. They try to find people in the middle, and there werent a lot of people in the middle for eight years or so. You were buying expensive Banana Republic, or buying gap. Wall street feels good about that. Julie it is interesting, given the nordstrom news. Has seen obstacles to acquisition in the past. Thank you. You can check out tv. Click on our charts and graphics, interact with us directly. It is our favorite way to consume bloomberg tv. Julia and if it wasnt, it is now. Julie we will be right back, with the closing bell in a few moments. There are was, just talking. Whatd you miss . Get a job in the hospitality industry, it might be a good time. Within restaurants and hotels, we are seeing job openings at a record increase. Here is the rate of job openings. 5 increase in these type of openings in hotels, food services, the leisure industries. Like they are having trouble finding folks in this particular industry. We have been seeing steady wage growth there as well. Just if this doesnt work out, we know where to go. England hasank of an inflation problem. They are unique in that sense. Take a look at this chart. Yellow line shows eurosterlin the resurgence we have seen since august. In banksge inflation get a little bit of a reprieve, not as strong. Show you the risk reversal, for the premium you pay for the euro. The three months, the blue line, coming off. If you look at the eurosterling one year, it has bring pretty it has been pretty static. We are seeing lower expectation of a continued rally near a sterling. But recognition that brexit is coming. Joe inflation data out of the u. S. Here is hopeful news. Chinesee line is producer prices, which historically has a relationship to global inflation. Up 6. 3 . This is the white line, diving. Core pte not doing well. Maybe there is another big inflationary impulse coming, certainly the Federal Reserve hoping to see higher numbers. Julie the market closes, next. , maybe a averages record close. This is bloomberg. U. S. Stocks inching higher into the close, and it was a record for all three indexes. We are seeing more inflation reading for the central bank policy. I am julia chatterley. Joe scarlet fu is on assignment. You are tuning in live on twitter. We want to welcome you. With thets begin market minutes. All three averages are closing at records, they were records yesterday, so any gain would be another record. We are seeing little gains are the major averages. We saw Energy Stocks rally on the day as well as oil. Utility shares are still weak, but in terms of the stocks we are watching here, we have been watching nordstrom. Nordstrom climbing on a report that Leonard Green and partners may help fund a buyout, the family that controls that company was seeking to take it private. We are watching equifax, those have plunged 30 since it came becausead been exposed of security vulnerability. 143 Million People have, up hacked. Senators want them to get to the bottom of whether the violations were done by managers when they sold stock after they found out they were hacked. This company will pay 4 billion to buy fidelity care to enter new yorks massmarket. It is associated with the Catholic Church in new york. Swatch swiss shares of work and reading up were trading up. Trading lower because of apple stocks. Other stocks we are watching, looks like President Trump is blocking a band for Lattice Semiconductor from china. It is a china back to bid that would try to get the government behind this, but it does not look like it was successful in doing so. We are seeing bouncing around in the afterhours, but not much reaction as of yet to this headline coming out. Betty and there was already raisedalready a red flag in the United States. They have been concerned with mitigation efforts. It hit Donald Trumps desk and he said no way, jose. The fourth time in a quarter century a president has blocked foreign takeover on National Security grounds. Lets return to market minutes and look at the Government Bond market. Not baton of victory of the a ton of activity, but we are withhe yield up for the risk on sentiment we have seen through the first three days of the week, higher rates, now the 10 year 2. 19 . Julia you can look at this currency market as well. It is a show of what is going on. Eurodollar at a twoweek high, the dollaryen, sterling and course. 2. 9 inflation. Could get something from the bank of england, and the wages were to the top side. A look at the dollar thing here the Credit Suisse target was ught up to 1. 2 to two 1. 22. There was a drop in fulltime employment, but the overall picture was mixed. There is a drop in the unemployment rate. Want to point out what is going dollarrand because we are seeing the south african weakened by 1 by 1 . Softness across the board, combination of technical moves, seeking technical profit, and the headlines from the south African National bank causing wobbles. Oil,and lets start with which had a nice gain of 2 . The International Energy it is saying stronger is demand, so maybe that story giving a better list to west texas intermediate, but still below 50 a barrel, gold selling off a little bit like it often does on risk on days. In the Industrial Metals pulling back, nickel is down 5. 3 on the day. For more on what is driving stocks