Its drive to create a Global Television network. Shares and costs are rising as subscribers switch on. Have amedia influence, i cool chart that shows a much immediate talk is affecting the market. Btv 5195. The blue bar you see on the bottom, they represent how many times you hear in the media, buy the dip. Since 2002. The more you hear this, particularly in the last several years, the higher the markets go. Maybe we have solved the puzzle. Why do these markets keep going up despite all these terrible headlines . Us, really. On saw interesting moves overnight. Not just stocks but also with dollar treasuries. He really is becoming more of a serious contender. Thet yellen speaking with president this week as well. I would love to be a fly on the wall at that meeting. John taylor now emerging as a front runner. The markets as you mentioned, they continue to move higher. We were reaching records again for the s p. The dow gaining 85 points. Nasdaq also higher by 3 10 of 1 . Not really getting that netflix effect yet as the numbers came out after the market closed. We will see how markets the subscriber numbers were quite good. Asia looking pretty rosy for Tuesday Morning on the back of what you saw on wall street. New zealand pretty flat. The kiwi we are seeing it rise. Stronger kiwi on inflation numbers. Really the focus is on this Coalition Government announcement that should be happening anytime soon. Australia looking ahead to a few hours. Aussie miners out with prediction results. Has been theoser aussie at 7849 against the dollar. That dollar momentum continuing as we see this morning. Take a look at japans futures. Up about 130 points expected as the tokyo opens. Sitting pretty for the dollaryen. Lets get to the first word news. President trump and republican leader Mitch Mcconnell may have given themselves some breathing room. Both emphasized their desire to move on after talks at the white house. But the clock is ticking on the legislative calendar. This weekis on recess and when it returns it will have just 28 days to tackle issues including taxes and funding the government. Fed candidate john taylor is said to have made a favorable impression with President Trump after now are long interview last week. The Stetson University economist is on the rise while former fed governor kevin walsh is seeing his star fade. The president wants rates low but taylor generally wants higher rates. Separatist leaders in catalonia have until thursday morning local time to state whether they have claimed independence. The monday deadline passed with spain saying it remains unclear. The referendum has given catalonia and mandate for independence. Madrid repeatedly said it will not negotiate. Reports from brussels say the you cable not improve its 24 billion wrecks it brexit offer. The eu may met Commission President and chief claimsnegotiator amid that talks are deadlocked. Hear theay they negotiations heading for a catastrophic breakdown must the eu agrees to talk trade. New poll suggests Prime Minister shinzo abe and his party are heading for the best Election Results in three decades. As many as 202g seats. 303 seats. They would retain their super majority. The governorces of staying at the bank. The governor needs to understand the Macro Economy. He has to face regular questioning and to communicate with markets while introducing bold policies. I cannot easily think of anyone more able to juggle such challenging tasks. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Thank you so much. Asian stocks look set to gain off i higher u. S. Close. Netflix grabbing the spotlight. Oil futures also standing out during the regular session rising to a twoweek high. Andave more on the markets the records we continue to hit. Records across the board. Not big gains but enough to keep us in the green. Oil is the big story at a twoweek high as the iraqis clash with the kurds. That impacts output. The currency, you do not see a big move now. Earlier in the session we saw the pound lower against the dollar. Treasuries under pressure. Spotlight the apple was in the spotlight even know there was a report the iphone 8 in one of the samsung ability. Have a break under a california investigation for possible role in the wildfires. Uports wynn resorts strong. If we go into what is going on after hours, netflix is the big story. Your debate seen netflix as a very strong performer. The focus is afterhours where it is up about 2 . Beat,eported a big probably their best three cue on record. 3q on they will spend more on u. S. Marketing this year. They can raise prices slowly but steadily. They do not see a direct correlation between content increases and we will have more on that later. Lets go into the bloomberg. What you see is netflixs scribers versus the stock price. It has got higher and higher as the blue boxes, subscribers, has gone up as well. A very big story likely to translate into the tuesday session. Seems like subscribers just shrugging off the price hikes. Talk about commodities. You mentioned oil rising higher on escalating tensions in iraq. Copper seeing some big moves around the china data. The china data definitely a big push for copper. China is the biggest consumer. Lets go into the bloomberg one more time. Je can see the strong rise tting past year end forecasts are rising. What is also in the spotlight, metals across the board outpacing oil in terms of the push higher. Bitcoin again grabbing the spotlight as it nears yet another record. Ceo of j. P. Morgan chase has been an outspoken critic of the bitcoin craze. Some comments he made over the weekend was who cares about bitcoin. He believes it is only the other guy. The only value it as is the value the other guy is willing to pay. It cannot in any way match currencies tied to it has no value. A ceo begs to differ. She believes we will see in etf tiedto bitcoin an etf to bitcoin. It tops out. It is mathematically metered to top out. Not even gold is topped out. It goes up 1 a year in terms of supply on average. I actuallyut value, think this has a lot over fiat currencies which are unlimited. Unlimited. Bitcoin nearing 6000 again, yet another record. Back to you. My favorite part is she says im done talking about bitcoin. The price just going up. Coming up, the former chairman of Morgan Stanley asia joins us to discuss all things china at of the 19th communist Party Congress. Later this hour in just ahead, President Trump reaffirming his december deadline for a tax bill. But can he really deliver that . We hear some hedging now. This is bloomberg. This is daybreak asia. Trump anthony majority leader Mitch Mcconnell held an impromptu press conference trying to project unity following reports of a strained relationship. Trump insisted he and mcconnell will continue to Work Together on tax reform. Lets bring in our tax reporter joining us. Make of this kind of show of unity from trump and mcconnell today . This is interesting. His chief of staff and Rex Tillerson do this and say look come everything is great, we are getting along. That is good. If trump feels that is good, thats great. But can it last . There seems to be a reoccurring trend of a public approximation proclamation than a fight later. Unlikely theyll get a tax bill by the end of the year. Its interesting hearing comments from the president , managing expectations. He was mentioning president reagan during these massive tax reforms in 1986. It took until his second term to get anything through. He said i have been here for only nine months. It seems like he is tapering down expectations for all this. The rhetoric has been we are going to get it done by the end of 2017. But the big open secret here in washington is a half until early spring to get this done. The whole timeline of what they are running up against is midterm elections. When to get into april thats when you get too far but they have several months into 2018 that they can maneuver. A letter steps and things they have to get done and agreements they have to come to. There is still in finding within the republican party. Forget getting democrats on board. Thank you so much. Laura on the prospects for tax reform this year. Lets dig deeper into President Trumps tax reform push with senior political analyst who specializes in government action. There is certainly going to be a push to try to get it through this year, if not maybe two 2018. But how important is it now to take action now . We heard gary say we have to get it done now. If we wait until next year the momentum will be don. Gone. Its important to get it mostly done now. They run out of time to sketching in negotiations roughly at the end of the year. I think we will see a detailed mostly final plan by the end of the year. But the reality is there will still be a lot of haggling in Conference Committee working on. The senate may not be have bill be able to pass the bill. Ofre will be a lot visibility by new years but it wont be finalized until sometime between the eyes of march and april fools day. Mark april 1 on your calendar for completion of tax reform. We will definitely be doing that. Sounds like a first draft is good enough, at least for the remainder of 2017. What do you think needs to be in that first draft . I think they need to outline the basic structure. So far they want to do in terms of brand objectives. But the reality is clear they are going back to the Tax Reform Act of 2014. That is a very specific will detailed bill with a lot of corporate revenue raisers in it. Over 1 trillion in Corporate Tax increases is simply we will likely see when they put out details. I do not think there is much discussion internally about the engineering of how you manage things. Perhaps they have not figured out entirely how they do the pass rate. Of the bill is locked and loaded. It will be the 2014 bill. That has big implications for a lot of industries. From the Budget Committee reform saying this plan could add to the deficit. What does the president need to to pitchich this this as a ill that can pay for itself . He needs to pitch the public first. How they can raise incomes and basically increased takehome pay. They are fortunate enough they do have a lot of Academic Research that shows the benefit intorporate tax cuts goes wages by a substantial amount. The problem is President Trump should have been talking about this in january. A huge communications deficit because he has been failing to make the case for tax reform as part of this program to renew america. Now it is catchup time. All the time they wasted on the details of what the rate is going to be or what do we do about state and local, that is time wasted when the president could have in making the case for a broadbased tax reform that listing comes across the board and does help to revive american industry. In the midst of this catchup we are seeing talk from steve bannon, he has attacked Senate Majority leader Mitch Mcconnell, challenge incumbent gop members. Alabama was a prime example of that. And of course he has an interesting view when it comes to tax reform. How big of a distraction is this for the gop . Party tot forced the shift back into a conservative agenda . I think it is forcing function in terms of time. The reason time runs out for tax reform in early april is that is when the primary season starts and that maybe when we start seeing all of these challengers. In particular are likely to see competitive primaries ahead of them. Thats quite disruptive and really a deadline for getting things done. In terms of where conservatives are, the good news is the Freedom Caucus seems to be on board with this. I dont think we will have the same problem getting tax reform through as we did with health care reform. On the senate side you have a combination of senators worried about budgetary implications, about a bipartisan bill. Between three and six republican senators who just do not like donald trump. The senate is always the point of failure. Absolutely. I just want to focus for a moment on the Corporate Tax side of the equation. We hear a lot about Corporate Tax cuts. You have done a deep dive into what companies or businesses are going to get affected, whose taxes are going to go up and whos are going to go down. What did you find . The single biggest change is going to be the way that we tax the overseas earnings of software and pharma and consumer branded companies. Companies with a lot of intangible income. We will have something similar to a global minimum tax on these companies so we tax their income worldwide and it will no longer be possible to pile up millions and millions, billions and billions of dollars in overseas Bank Accounts that are no longer sent back to america. They are going to get repatriation for what they have stored up overseas already but going forward, they are going to pay taxes on that income. The good news is the taxes will be at a lower rate, 20 rather than 35 . It will be a more rational system. But these i. T. And Pharma Companies that paid low tax rates will see that affect their tax rate higher. Another big group of companies that might be vulnerable would be banking and finance and insurance, especially insurance. These companies have a bigger benefit from the cut in the corporate rate. So even though insurance in particular will see lots of tax increases, i believe they will probably be next winners overall net winners overall. Interesting perspective. It could make for a scary halloween. I dont know how much markets are pricing this in. Halloween is the single biggest festival in washington. All the cool stuff happens around halloween. James, thank you. Coming up, john taylor maybe the new favor to head the fed. This is bloomberg. This is daybreak asia a quick check of the latest is this flash headlines. Airbus taking a majority stake boosting a slow selling airplane in opening a new front in the battle with boeing. The cseries left them drained of ash of cash. Subsidy dispute with boeing in washington slapped it with 300 tariffs. Sources in india City Government is considering selling their flag carrier. Sell air india to local barriers the carrier is 8 billion in debt but they are debating whether to put more than half of that in a separate vehicle to make air india more attractive. They expect to resubmit a joint venture request with american. The request he feels there is a strong likelihood submission will be approved. They rejected the airlines request for a joint venture in the u. S. , australia and new zealand. The race to be the next fed toir and dark horse appears be running in last place and is said to be running up on the inside rail after his meeting with donald trump is said to have left the president rushing gushing. Every week there is a different person leading the pack. Now we are seeing john taylor. , for anyone in hong kong racetracks really resonate. We love them. Absolutely. It so exciting when you think a horse doesnt have a chance, suddenly they are up on the inside coming around challenging the leaders. Another important thing, remember when donald trump said john taylor, obvious choice. And has a willan that suggests higher rates. Than donald trump criticize janet yellen. Been trump got in the white house and realize you might like to keep rates low. Thats a big reason a john taylor was not one of the most likely winners. Are some reasons, trump might be saying this john taylor guy looks good to me . Less experience. Jim lots of experience. He served under three president s. Two prominent republicans. Former treasury secretary for international affairs. He knows global issues and the global economy. Hes maybe a Kindred Spirit with trump when it comes to the economy. A few weeks ago he wrote a book. He showed he believed in limited government. A reliance on markets. A big fan of those. A lot of people said because the rule would point for higher rates, thats where he and donald trump may part company. But john recently reminded everybody, this is not to tie central bankers hands. He emphasized flexibility. Kathleen, we will be watching of course. It could change. Issues forok at key xi jinping as the Party Congress begins this is bloomberg. Yvonne storms and cloudy skies. 7 30 a. M. Tuesday morning in the city right now. 30 minutes away from asias first major market open. Bity looks a little cloudy. 7 30 p. M. Monday, here in new york. Markets closed higher, just like the skies. But clear. Theclear in increases in gains we thought. I am betty liu in new york. Yvonne i am yvonne man in hong kong. You are watching daybreak asia. First word news. Bloomberg is being told steel has been faking quality data for 10 years. To oldest data going back thousand seven, but the executive tells us there are indications of wrongdoing dating back more than a decade. Shares have slumped since kobe steel admitted to falsifying reports. Higher in late trade after gaining another 5. 2 million subscribers in the Third Quarter, beating estimates both. N the u. S. And internationally it is expecting another 6. 3 tv viewers to sign up in the fourth quarter. Earnings per share was . 29, missing analyst estimates of . 32. , beatingame in forecasts. The Australian Government has reportedly rejected a Clean Energy Target recommended by the countrys chief find it. The abc says Malcolm Turnbull will propose a plan to bring down the electricity prices while meeting australias paris Climate Change agreement. The plan will appeal to a group of lawmakers who advocate for power. A new poll suggests Prime Minister shinzo abe is heading for