Carolina will vote against the next round of Hurricane Relief funds unless Congress Cuts spending to offset costs. It is unclear how many more members will agree but it could complicate the path for relief. Democrats immediately rejected the demand. The Islamic State has last one of its has lost one of its last stronghold in iraq. The fight against the terrorist group is now focused on a stretch of border with syria. Because honestly is desperately trying to hang on. Vladimir putin met with saudi arabias king salman. This is the first time that saudi leader has visited russia. Theyre working on an agreement to curb oil production. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. Crumpton, this is bloomberg. Julia live from bloomberg World Headquarters in new york, im julia chatterly. Scarlet i am scarlet fu. Joe and i am joe weisenthal. Is whatd you miss . The house adopting the budget resolution for 2018, but the unity may not hold as details of the framework come or clear. People are treading cautiously to avoid an immediate independence from spain, but that is not stopping them from apearing in top court with parliamentary session. The u. S. Commonwealth says it will run out of cash by the end of the month, adding another wrinkle to the complicated role of the u. S. Government in its debt crisis. Julia whatd you miss . Between spain and catalonia taking another turn. They have a parliamentary debate on monday. The Spanish Governments position remains firm. This is out of the question. The reasons are that first, it is illegal under the rule of law. The Spanish Government guarantees that the enforcement of the law is going to be perfectly granted in spain. Julia this is taking a tour on the countrys stocks. Lets dive into the terminal function. You can see the spanish stock market, the white line and the stoxx 600, the broader european line. You can see the relative underperformance we are seeing since maybe the middle of september. We have seen today is the bounceback in the spanish market. There doesnt seem to be a degree of inconsistency between leaders and the cattle on cat alon party. Joining us appear coy is peter coy. Is a belief that there was a unilateral declaration of independence and we are still waiting. Rights. They were saying 48 hours after a vote they would be ready to declare independence. I think they understood quickly that that would not be a good idea. They thought they could form some kind of accommodation and that is what we are seeing now. We may not even the that session coming out monday. There might only be some people meeting. There are divisions within the group. It was fine on sunday to get out there and expressed their support for something, but now it comes down to it, you have two sides. They need to have a lot of internal politicking. Brexit . Exactly right. One thing that was surprising if he pointed out in your article about how catalonia got to this point. A few months ago, it appeared the popularity with that a low at a low points. What happens between them when the separatists were on the outs and now when they have momentum . Look at theyou economics, that is what seems to have beeneemed coming down. Maybe it was because of the flame of the financial crisis. Now we realize is there was always a lot of sentiment their independence that would is being quelled completely by a strengthened economy. And then the Prime Minister of spain pushed matters and try to squelch it entirely. Joe by doing what specifically . It. R by banning in canada and the u. K. They had a referendum. Here they banned it and the voters said yes. There was last time an unofficial referendum they simply did not get the votes. We have to be cautious. Spanish governor said told people to stay at home. The relevant people who did what they were told and stayed at home. We do not know actually what the official stats are. They could be skewed. Peter that really does need to be said. Another thing that needs to be set is because this was an illegal referendum, it did not have any of the standard equipment, monitors and so on. We are taking the governments word for these unofficial numbers. That, therewe say was a miscalculation. He doubled down when he probably didnt need to. Peter let them vote and let us see what happens. Even if the boat had still come out with a majority, that wouldnt necessarily compelled stalonia to succeed eceed. You could also turn a blind eye and kind of let things happen. Julia you can. Was this about leverage . Peter yes. Right now, they have more leverage because of the expression of 2 million votes in favor of it. Scarlet f economics was not driving the quest for economics, would bedependence, driving this new need . Peter yes. They could say that you could go slow here. There would be an enormous costs to assume the National Debt possibly. The Spanish Government could stand in the way. We do not know if you will get into the European Union or the euro currency. All of those things militate against going ahead with a risky move. On the other hand, nationalism drives them to do it. They have their own language, culture, architecture, traditions, and history of off and on again independence. They do not want to be subjugated by spain. Julia i can only imagine what the Business Community here is saying because another problem is we do not know what will happen to eurozone membership if they were to seperate. How do we operate and give our investors are customers continuity when we do not know what currency we could be using future . Future . Peter i think what probably happened it the coalition is favoring separatism and includes businesses. You can imagine businesspeople are feeling a little uncomfortable right now and theyre probably trying to have some back room conversation. In a different direction can we steer this in a different direction . Joe people are looking at the broader risks and the next thing they should be watching to see whether the two parties, for more than two parties. But whether spain and the region can somehow find an offramp rather than continued escalation. Monday will be one thing. Whether the government goes ahead with the meeting of the assembly. Well we will be looking for is kind of maybe starting with back ussions and moving on is a more formal mediation of some kind. Start seeing that maybe you will see that we will start to behave like grownups here. It is like trying to save a marriage. Scarlet normal political protocol. Peter coy, thank you so much. Bloomberg businessweek pachulia on the that julia hosts weekends. Coming up, the future in the senate. In new york, this is bloomberg. Scarlet whatd you miss . The gop budget passed earlier today. I wanted to say i am very proud to have gotten the budget across the floor. We worked with 21 of my male colleagues to be able to get out of the community committee. We did have a budget that represented the vision of the house of representatives. Thatwe will be combining with the vision that comes out of the senate. We still do not have a definitive land from them yet plan from them yet. You do go to conference, what would you hold strong to and what other parts of the budget could you actually let be diluted or eliminated . I think from all the members who came to speak to us on the floor, it will there are concerned about the mandatory spending. Of course, we secured more money theour military to up dollars that were lost by the obama administration. Secondarily is the fact that there is mandatory spending and there that we know we cannot continue down the path that we are currently on. There will be a lot of discussion on whether they have that in their budget, how much they have, and how we might be able to combine the two. Of defense spending, there are reports that some people in the white house want even bigger amounts of money for defense. Has you feel about that kind of talk . Do you feel about that kind of talk . Between thegood job fiscal hawks and the hawks that want more money for the military. We were able to find a consensus this 625 million dollars. I think that was a good place for us to land. We will see what happens when we get over to the senate. When it comes to the tax reform plan, Chris Collins of new york says it looks like there will be some kind of compromise on state and local tax deduction. Will these states be accommodated . What will happen in that committee, i dont know at this point in time. I do know there are a number of states who feel strongly that there has to be some kind of maintenance within that fault plan and whether there is a to the amounte or that can be detected, i am not sure. It is difficult when you have a number of members, even in the republican caucus, come from those states. Those are all negotiations that have to take place in the conference committee. If i can just talk about a separate issue on hurricanes and the impact on the budget. There are some people in congress who think there should not be any bailout that does not have a corresponding cut. What is your personal view on whether you need offset . I think we can do a better job. This is a conversation i have had with members of my own committee and other members in the house. When these disasters come along, we want to make sure we have money set aside in the budget. State we call that a Rainy Day Funds. We need to put those dollars in the budget and anticipate. There are some years when you do not have disasters, but this happens to be a year where we are seeing a lot. Let us not forget what is happening in the northwest with a lot of fires. This is not a this is another disaster, not water by fire. I think we can do a better job to make sure we have money aside so we have a Rainy Day Fund for many things happened. Rico, there are some estimates that the price tag on rebuilding that territory near 100 billion. Where should that money come from . I cannot say at this point in time. Is aexists that discussion we need to dig into and say what do we do. At the end of the day we need to plan for these. We also need to have those in the states make some of those plans as well. I think we need to look athletic insurance and 6 look at Flood Insurance and say is Flood Insurance working. I will give a lot of credit to the chairman of the finance committee, who has this under his jurisdiction. I know they are considering that and it is something we need to be realistic about. If you are in a flood sound and your house is been rebuilt 16 times, maybe we need to think about what we do with back into things differently. Tennessee running for governor. How long will you stick around to see this budget through . I will stayy today where i am and will make that next decision in a little bit. Scarlet that is the congresswoman of the chair speaking earlier. Shares forpal paypal, the stocks coming out high. Abigail doolittle is tracking this. Is the digital cap i have used reluctantly. I am slow to it adapts to new technology. It was pretty easy to use and lots of americans are using it. Some say paypal will begin enmo. Izing than m v 64 of these users at say it is their preferred payment method, saying there is room for expansion and those who do use it like it. Expand says they might to millions of other proprietors so that could be very big. Joe when you use it, the you include a funny memo . [laughter] abigail i included nothing and at the last moment i realized it could be made public. I do not have it public and i dont have a picture. I am pretty boring. Joe it is a social network. It makes payments fund. Julia i like the idea of making payments fun. Expended y expanded their mastercard relationship today to different countries. This benefits mastercard to give it an option offered by paypal. Paypal receives financial incentives that were not sure of the amounts but it is a mutually beneficial relationship for both companies. Paypal outperformed both the set and mastercard in 2015. Julia , the september jobs report is on tap but the headline number may be over overshadowed. We have the charts you cannot miss next. Julia welcome back. It is time for the Bloomberg Business flash. The federal judge ruled against wells fargos request to have his bogus accounts case thrown out. Failed for the banks best interest. They made statements to the sec but they were dismissed. Have hit aors shares record every day this week. This is from an analyst that predicts a 13 billion business emerging from gm for self driving car and car sharing. This is a big turnaround for gm. The shares have been stuck in neutral. Mexican beers have been showing up at american holidays. They have been popular at summer months, including during the fourth of july. There are expected earnings that are higher. Going up as sales of wine and spirits slow. Newton locked a few will reporter last night after they asked a normal question. And that is your Bloomberg Business flash update. Scarlet whatd you miss . The impacts from the recent hurricanes on the market. Of consensus is for a gain 80,000 after a reported 156,000 gain in august. If you look at the chart, you can drive a truck through the september estimates. The green line is the highest, the red line is the lowest. The bottom panel shows the spread and that is where it gets interesting. The spread is pretty wide. This is not updated properly. It is now 190,000. Perhaps im looking at the wrong one. 198,000 is the whitest wi dest from 2010. This is not right. Joe the bottom line is no one knows what will happen tomorrow. [laughter] no one knows what is going to happen and it doesnt matter. Economists will stick to their story regardless. Joe exactly. Do you know what people are not into anymore . Gold coins. I remember during the crisis and hordene said to gold coins. Heres a chart. You see on the very right side we havent been this low since 2007. No one is buying these for the monetary apocalypse. Julia no one is selling. [laughter] joe the prices are going down. Scarlet they used to be on all the time, the commercials. Joe this is bad news for my political radio host. Their businesses struggling. Not a good transfer them. Scarlet the market close is next. Take a look at the major indexes with less than four minutes before the close. 500, it hass p broken out of its tight range. It is still not gaining by huge amounts but it is a triple digit increase for the dow. This is bloomberg. Julia u. S. Stocks closing in the green report eight straight day with the dollar strengthening and treasury slipping ahead of tomorrows jobs report. Am julia chatterley. Scarlet i am scarlet fu. Joe i am joe weisenthal. Welcome you to the closing bell coverage. Our market minute and stop me if you have her this, new record highs for u. S. Stocks. Joe eight days in a row, the longest streak since 2013. Remarkable move for the s p 500. Scarlet eight straight game for we are and dow talking about a record low for the vix. The dollar having it strongest day since january, not at its best level since july. As julia was saying, no sign of a risk aversion and more scope in the gains we see today that any previous seven days. Individual movers, speaking of record highs, netflix at a record high, raising the price of its most privately u. S. Service plan by 10 to help pay for all of its original programming. Constellation brands an alltime high after secondquarter eps and sales that Beat Estimates and increased its fullyear outlook. Seaworld entertainment off by almost 7 , analysts doubting the digital buyout or break a after people familiar with the situation said the company had been approached by possible suitors. Makingpharmaceuticals its trading debut, blistering gains of 77 , 30 per share. Joe Government Bond market, not a lot of action but higher yields across the board in the u. S. With twoyear yields up to 1. 49 and 10 year at 2. 35 . Tomorrows jobs report could be the next major thing that affects some of these macro market. There is only so much uncertainty, that is possible market would look for them but 10 year yields up to 2. 35 . Julia slightly higher yields daybreak the dollar and position unwinding going on in yen ahead of the numbers tomorrow. Sterling versus the dollar, eight one month low versus the dollar and three week low versus the yen and u. K. Auto sales disappointed. A quick look at dollar, the threemonth, trade deficit numbers, a deficit unexpectedly widened because dollar cad casing out. 11550. 29 highs, finally, commodities, oil with a bit of a bounce, holding back above 50 per barrel on west texas intermediate up 1. 5 . Gold sinking, not huge moves in gold but it grinds lower. Nicely over 1300 announced a couple of weeks ago and now 1270. Bit. Rate rising a little not historically good for gold, and copper futures with a very nice day. Often seen as an economic sensitive bellwether, gaining nearly 3 . Those are todays market minute. Scarlet stocks after the Fourth Quarter with a trump trade, fueled by tax reform, to go over the market moves, lets bring in the chief u. S. Equity strategist with bloomberg intelligence. The reflation trade has been low growth and low profitability and low yield stocks that are driving everything. What needs to happen to support this trend . They probably need to have further momentum behind tax reform. What you saw in september was a remarkable reversal of face. Higher quality, higher Growth Companies with low tax rates, generally outperformed for the vast majority of the year and we saw a big shift in september towards the opposite end of the spectrum. A lot of that is a consequence of tax, embedded in prices. We do high taxes versus low taxes company and low Tech Companies outperformed all year this year and the last time they are performed by as much as they did in september was the election month of november of last year. There is a clear process going on in the market to try to price tax reform sometime in the near future. We can hold onto this for a while. It can sustain for a wild but i would suggest that, if you get to the First Quarter and second court of next year and still have tax reform, you are subject to a vast reversal. Joe the company is doing well by the same ones that did well at the end of 2016 during the early novemberlate december time. They are Similar Companies but the one big difference is that the multinational compass on the index are still outperforming. That is a big