The month, not just the Third Quarter. Like we are seeing a few new record highs we close on this day. S p in the nasdaq on track, so i will call the dow jones mostly unchanged. I want to look at the s p, on track for the eighth straight quarterly gain on tax reform. Trump coming out and saying tax reform will be the rocket fuel for the economy. And then the nasdaq here, up 6 10 of 1 , by far the biggest gainer of all of these. The last record close we had was on september 19. Keep up these games, we could see some new winners here. We are seeing a lot of these stocks on the nasdaq continue to outperform. They are driving the outperformance in the s p and the nasdaq. Im am focusing on facebook, that record high with 173. Closing in, but green on the screen. Deeper, micron technologys came out saying a market for the memory chips are good. So all of this playing in today. How do they compare that to the s p and dow jones because this can be very volatile route the quarter, like scarlet said. Not only is at the end of the month, but the end of the quarter, so we can have a look at how it has been doing. This massive decline year with a 3 loss on monday, but we are now up 3. 3 percent. Despite some volatility, ending up for the quarter. Come into my terminal here to aboutt up, we are talking not only low volume, but low volatility as well. This would be the first time in a decade that we have had quarterly turnover here at less than 1 trillion. Really lowvolume, not a lot of buying or selling in either direction. That also ties into the vix a little bit. If you take a monthly chart of the vix going back 30 years, we have never seen it this level four. The last time it was, it was in 2007. Chart, idea here on this going back. Some lowvolume allaround. That is how we are wrapping up the quarter. Scarlet . Julie thank you so much scarlet thank you so much. Lets get to the latest on tax reform. President donald trump reporting his over paul plan today to manufacturers overhaul plan today to manufacturers in washington, calling it rocket fuel for the economy. Pres. Trump my administration is working every day to lift the burdens on our companies and on the workers so you can thrive, compete, and grow. Plane very center of that is a giant, dutiful, beautiful, massive, the biggest ever in our country, tax cut. Is chiefjoining us now washington correspondent Kevin Cirilli from capitol hill. We also have kevin, i want to start with you. The president going and making his case for this tax cut. Why is it so important for him to do so, travel around and talk up this package . Kevin he took his pitch to manufacturers earlier today, ok who will play a key role as one of the constituency is lobbying on capitol hill, who will begin crafting the tax policy. Of course, the Manufacturing Community greeted this is a very receptive response, i talked to federal ceos a guide of the speech several ceos ahead of the speech and after who said they like what i had to here, and are hoping for more details on how exactly he will pay for it. They want the lowering of the Corporate Tax rate to 20 , they had hoped it would be 15, but they are glad the president is holding the red line on 20 , and this new issue of instant expensing. That would be opposed to the depreciated asset scheduling we have seen over the current tax structure. They like the idea of being able to have those kind of did options. Take a listen to how the president himself tried to frame this, about why it is needed to lower that Corporate Tax rate. Pres. Trump our current tax code Punishes Companies for doing business in the United States and encourages them to leave. That is what has happened, for so many years. That is one of the reasons, probably the prime reason, that companies are leaving our country. Kevin democrats are continuing to criticize republicans for continuing to push lower taxes on the wealthy while subverting the middle and lower class. The president and republicans pushing back very much against that criticism, suggesting the reason jobs are going overseas is because of the high tax rates on companies, as well as the burden on the lower and middle class. Julie so the debate is still pretty philosophical this point. What are members of congress doing right now . Until the house ways and Means Committee introduces the bill . The past couple of hours, the Senate Budget committee unveiling their framework for the 2018 fiscal budget, essentially to get out of the wonky political rhetoric for a second, that would be the vehicle to move along tax reform. They have set about on november 13, the deadline for the deadline coming to fruition. The folks i am talking with say they are on schedule. They are on pace to fulfill what President Trump has called for as well as treasury secretary Steven Mnuchin, which is to have some form of tax reform completed by the end of the calendar year. So far so good, and is one ceo music to our ears. Scarlet one of the industries that has not moved abroad at all might be one that is the most, has the most to gain from this tax cut. It banks. We are not talking about companies that have taken manufacturing elsewhere, like tech firms for example. Today, a story on that looking at how much these Companies Might have to game. Big banks in the u. S. What will be the windfall for them . They do some stuff overseas as well, but the biggest banks, especially the ones that look like they will benefit the most, are very u. S. Banks, such as wells fargo, bank of america, big retail branches all around the country. The biggest chunk of their revenues and profits are in the u. S. Banks get fewer deductions than other industries, so they will gain more than anyone else if the rate goes down, and a lot of deductions go away. It is not clear if they will all go away, but assuming they do, the top six banks i looked at for this analysis would gain 6 inlion, 6. 4 billion a year additional profit by keeping some of the taxes they pay to the irs. Aarlet and to borrow metaphor, this would be rocket fuel for their earnings, because so much optimism surrounding banks was on the deregulation side with President Trumps agenda to make rings and polar and things simpler and get rid of rules for the banks. How about tax cuts for these big banks . I wrote a few weeks ago about the deregulation attempts, the treasury report that suggested the easy steps they could take without having Congress Change any of the laws, reform doddfrank. Regulators easing off on the rules, and that could be many miller many more billions of dollars then the tax cuts. But that adds into it, so when we put all of this, there is a lot of rocket fuel and they could all go to the moon. Julie kevin, to bring you back into this, is there anything in the tax reform package as it stands that is industryspecific . Or is it blanket Corporate Tax cuts . Fuel, rocket man, we are talking a lot about rockets. There are no specifics right now on how to pay for it. I pressed the ceos of the National Association of manufacturers conference about if this is optimism that is perhaps premature, and they they are that cautiously optimistic at this point. They have been meeting regularly with the big six, and they have been assured by the rebel it republican leadership, including Mitch Mcconnell and paul ryan that they have been working very the scenes toind build consensus, unlike what we saw on health care. The illustration they pointed to was the House Freedom caucus, because when the framework was released earlier this week, the House Freedom caucus came out and gave a glowing endorsement of it. That is not what we saw when the Health Care Debate was happening. The they are seeing that as a positive step forward when you talk about things like this the state and local tax deductions, it has been said it is up for negotiation. The president stayed away in his address this afternoon from giving specifics on how to pay for it because they are pushing off that to the taxwriting committees to build that cohesion appear on capitol hill. Whether or not they can do it, i will be visiting for the next couple of weeks trying to figure it out. Scarlet or take the blame if they cant. Kevin cirilli joining us from capitol hill. Lets get you a check now on the first word news this afternoon with mark crumpton. Trump wellhead to asia in november. The white house announced today the president will visit japan, south korea, china, vietnam, and the philippines. It will be President Trumps first visit to the region as president , and it comes among rising tensions with north korea. They hope this will stand then the International Resolve to confront the north korean threat. President trump in his treasury secretary Steven Mnuchin reportedly met with uber institution fellow cabinet isin marsh warsh, who being flagged as someone to replace janet yellen as fed chair. The core pce, the feds preferred measure of inflation, is a very bad proxy or the underlying strength in the economy. It is not a perfect proxy for policy should be, or for the broad case of Financial Stability. Last he also suggested year that the fed needs new air and new ideas. It is said that the fed chair is still an open race. Your European Union originals European Union officials have ruled out interfering between spanish officials and cattle on officials before the upcoming upper run them referendum. Alanlog officials cat officials and spanish officials have asked the eu to step in before the vote. And a man charged with a deadly shooting at a Tennessee Church shootingevenge for a at a black church two years ago. He is accused of killing one person and wounding six others at a church outside nashville last sunday. Specifics were not released, but the note referenced retaliation for dylan roof, a white supremacist to killed nine worshipers at a church in South Carolina and 2015, and has been sentenced to death. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Scarlet . Scarlet thank you, mark. Coming up, former white house chief strategist steve bannon has a plan to remain a political force. His next move involves, or should we say targets china. From new york, this is bloomberg. This is bloomberg markets, im julie hyman. Scarlet and im scarlet fu. Lets get back to politics. Former white house chief strategist steve bannon has gone to go has promised to go to war has promised it to take on china. Joining us is our National Correspondent joshua green, devils bargain steve bannon, donald trump, and the storming of the presidency. Great to speak with you. Thank you for making the time. Wizz steve bannon steps of the rhetoric on china, he talks what isy about that even mean . It means when american firms partner with chinese companies, they have to force technology transfer, which bannon tells me in this piece essentially saps the essence of american capitalism. If the u. S. Government does not take steps to more aggressively confront this, the u. S. Will become, in his words, a tributary state of china. So the news in this piece is that he has been meeting with Henry Kissinger in plans to form a group that will pressure the American Government and raise try to geteness, and President Trump to follow through on some of the more aggressive actions he promised as a president ial candidate, but has not yet followed through on his president. Gotlet then and of course most of his relevancy in the white house from with bannon, of course, got most of his relevancy in the right House White House from his relationship with trump. Can he affect policy in this point, either through this group or through his continuing direct connection with the president . Mr. Green it is not yet clear, but there are two avenues through which bad and can affect trump. Number one, the two of them still talk. In one of the minor news items in my piece, i report that when hong kong in delivering a speech on u. S. Economic nationalism on september 12, he called President Trump from hong kong and they had a discussion. He would not tell me what it was about, but i assume it was on china and what trump could do in terms of confronting them. Another way he has influence over President Trump is that since leaving the white leading a populist, nationalist faction of republicans from the white house. Where President Trump endorsed indidate Luther Strange alabama, he ran against roy moore, an outsider insurgent bannon Andy Breitbart news, and he absolutely trounced strange, humiliated trump of the candidate. Bennett is now in colorado recruiting additional republican challengers to run against incumbents in other races. If he continues to do this, he will continue to have more say in how republicans run issues white china, and what kind of pressure the white house will come under and how it should be addressing these issues. Doesnt he risk angering the president though, and damaging their relationship . Mr. Green he may risk angering the president , although bannon, very shrewdly since leaving the white house, has said publicly to me and other reporters that he is not confronting trump. He is going to war on behalf of trumps agenda, as he put it. The interesting thing is that he trumpsg to war against candidate in alabama, but so long as he is not criticizing him directly, saying look, i am staying true to the spirit of donald trump of the ideas that he put forward on the campaign trail Donald Trumps ideas that he put forward on the campaign trail, he might have some success. If you look at how donald trump is blaming his humiliation and alabama, it is not steve bannon, but the white house. Scarlet i want to go back to china a moment, because you antioned steve bannon gave speech in hong kong and has met with chinese officials. So he is in demand from the chinese. How does this offset the president up for his first asia trip in november . Will steve bannon play any role in that trip . Mr. Green i do not think he will, but it creates tension. Bannon is pushing trump to be more aggressive, do what you said. I think trump, now that he has become president , understands the issue with china is not as black and white as he thought it was on the campaign trail. And there are reasons, including the influence on north korea, why a u. S. President might not want to come out and slap china with a currency manipulator designation, or do something militarily in the south china sea. Both of which are things trump promised to do. I imagine he is getting a lot of encouragement inside the administration, inside his own white house to try and get along as best he can with china in advance of this november trip. What will be interesting to me is what will happen after that trip and whether bannons ideas will have more currency than. Julie josh, thank you so much. Bloomberg is businessweeks National Correspondent, we really appreciate it. This story on steve bannon in the latest issue of Bloomberg Businessweek. Next, what we were told about President Trumps immigration policy and how it affects the tech industry. From new york, this is bloomberg. Scarlet microsoft has been among the Tech Companies actively opposing many of the trump administrations decision on immigration. Spoke to emily chang about this and other policies coming from washington. For us, it comes down to what are the timeless values that have to translate into these principle stands that we take, whether it comes to immigration, making sure we do everything we can to protect our employees, which are contributing not only to microsoft but the american society, in case of dreamers, taking a principled stance. That is how we look at these issues. At the same time, we are not elected officials. I do not have a mandate. We are subject to laws, but we will fight for what we believe is the right of our people. Emily we have seen the nfl pushing back against President Trump, starbucks has gotten pushback from shareholders. Have you gotten any of that pushback from customers or the board . Mr. Nadella on the board or even in our management level, perhaps the biggest recognition if i have learned one thing in my three and a half years as a ceo is that true, multiconstituent nature of the job. The shareholders, customers, employees, the government, it is all of these forces simultaneously, all the time. For a Large Company like ours, a large, Multinational Company like ours, really balancing this is all that is required. Emily you have met President Trump twice now. What is your impression . Times, the both conversations were centered around immigration, why i think Immigration Reform can drive american competitiveness, making the case for it, as well as making the need for american infrastructure, in particular digital infrastructure, and those conversations were good and he was receptive to those ideas, now we need to keep working and making sure there is action on it. Emily we are seeing drive to further regulate the tech industry, from google, to facebook, from the u. S. , to europe. Are you concerned about the threat of increased regulation .