Putin said moscow opposes any unilateral change to the agreement. President trump has refused to recertify the deal. France, germany and the year be in union have also urged President Trump to adhere to the agreement. U. S. Navy leaders are recommending a sweeping list of changes in sailor training, requirements and safety procedures. The ap learned a report scheduled to be released tomorrow seeks to address systemic problems across the Pacific Fleet that led to two deadly collisions earlier this year leaving 17 sailors dead. News 24 hours a day powered morning i am Mark Crumpton. This is bloomberg. Live from bloombergs World Headquarters in new york. Were 30 minutes from the close of trading. U. S. Stocks mixed as the fed keeps on track for the debt rate hike and we await news for the next fed chair. Can add tax reform to the list of tax agenda items facing a delay on capitol hill. House republicans plan to rewrite unveil the plan tomorrow morning. Gears up to phase investors after facing lawmakers on capitol hill for a second days hearing. Advertising sales expected to take center stage in thirdquarter results coming up after the bell. Also reporting results, tesla. It could be the moment of truth for the model three at the heart of teslas bet for mainstream success. The tax reform bill is released tomorrow, gop leaders will have just 10 official legislative days before the holiday to do nothing short of rewiring the u. S. Economic engine. Here to talk about what is feasible is congressman Chris Collins come a republican representing new york. He joins us now from capitol hill. Chris good afternoon. Are reports you have managed to find some kind of compromise with congressional leaders that will allow deductions for state and local taxes to remain in some form. Is that true . Were it does look like going to have a continuation of the deductibility of property at aboutbe cap 10,000. Toyour property taxes of up 10,000 you can deduct. If they are over 10,000 you would be limited to 10 plus your mortgage interest deduction. I do think what it still means is 85 of americans will take a new standard deduction of 24,000. Even though we are putting in as a compromise up to 10,000 of property tax to be itemized, it is only if you are going to itemize with over 24,000. I think it is still going to be most folks taking a standard deduction under the new plan. Joe obviously Governor Cuomo not happy with the idea that state and local taxes that people still pay in your home state of new york are still fairly high and people would take a hit on that. What is your response on that come as you have laid it out, that deduction would go away. Chris as i have said, king andrew has certainly levied the highest taxes in the nation on his subjects and i am fighting for the upper middle in crumb income new yorkers. He is fighting for the billionaires on wall street and Hedge Fund Guys making millions and living and mansions. Our tax plan is not about living looking after the top 2 . It is about the middle and upper middle earners. They are going to save money under this plan and it is quite the juxtaposition we have. As a conservative republican everyday for the middle encumbers and andrew cuomo and senator schumer are fighting for the billionaires on wall street. Joe do you believe the elimination of the state and local Tax Deduction would put put juston albany to changes fiscal approach Going Forward . Chris i think it should. The millionaires tax, which king andrew is trying to protect, the millionaires tax is what they are talking about which is one of the highest in the nation. I would hope with losing the deductibility of that for those millionaires and billionaires they should take a hard look at it. In drew cuomo made sure he did not some set because he has never seen a taxi didnt like or want to hike and this was one of them. We had been saddled with the 8. 9 it was supposed to subset a few years ago and king injured wants to continue it. Hes going to come on come under a lot of pressure that he deserves. I just want you to listen to what he had to say about the tax reform plan and the way they are going to approach this. The speaker told me the concept was so new and so bold that any timeframe that we have the rankandfile members of the house could not wrap their heads around it and understand it. Thes something i think members can understand and were going to keep pushing and see if we can get existing reasserted. If not we are going to oppose this bill tooth and nail. Julia what is your message to jerry howard here in light of his decision to fight tooth and nail against this program if he does not get what he wants . Disappointed in jerry because what he is opposed to is the doubling of the standard deduction to 24,000. Today, a large percentage of americans are itemizing, taking their income Tax Deduction, mortgage interest deduction, because standard deduction is 12,000. By taking it to 24,000, 90 of americans will have a simplified postcard tax return taking the standard deduction. Their contention is if they get the standard deduction theres no incentive to own a home. They are somehow saying if you do not have a tax incentive to buy a house they were not buy a house, and that is ridiculous. In canada they do not get reductions and have higher ownership in america. People are buying house because they wanted ticket fence and a yard. They want a swing set. The thought that the only reason people buy a house is because of the mortgage deduction is just crazy, it is wrong. They also forget we are eliminating the alternative minimum tax. People were buying houses before and only getting a portion of their deduction and the like because the alternative minimum tax came in on top of it. I am disappointed that he does not understand that a growing economy is going to put more pay into peoples wallets, more people are going to have the income to buy a house, they will be more demand for housing. It is very selfserving, very narrowminded and i can tell you, their disappointing. Julia are you expecting more trade Association Heads to come out against this tax reform plan . Chris i dont. You have already seen chamber of commerce, most of them with the exception of the homebuilders again, they are not thinking about what is best for america. Isy are overplaying known good to buy a house because they will not the benefit of itemizing the deduction. They areind ourselves, opposed to doubling the standard which is ao 24,000, huge boost income for 90 of americans. They are just looking out for themselves and i am disappointed in that. Scarlet our thanks to Chris Collins of new york. Julia we have breaking news. Regina has has resigned as the u. K. Defense secretary according to the bbc. This comes following accusations he acted inappropriately with a journalist. In his resignation he admitted his behavior. This has ramped up pressure on the Prime Minister theresa may to take some action in relation to the growing uproar about this sexualharassment claim. It was apparently a dinner 15 and he apparently had apologized for placing his hand repeatedly on her knee. He has not received as u. K. Defense secretary. This he has now resigned as u. K. Defense secretary according to the bbc. It continues. Scarlet lets turn now to washington. Today marks day two of tech hearings on capitol hill where legal reason this for google, twitter and facebook are testifying at this moment. Earlier we had Top Democrats berating the tech giants for their lethargic response to russian interference in u. S. Politics. Joining us now is our correspondent kevin. At the end of the day they want see zuckerberg there, this the google ceo of their. Kevin ceo up there. Odd to only have your legal counsel. The demand from lawmakers to have the top folks representing these companies, holding them accountable. It was odd and met with the criticism, not only from democrats but also republicans. We are noticing this afternoon that facebook is releasing some lly the senatea Intelligence Committee is releasing some of the ads facebook have not disclose that we use during the election. Source whoh one works frequently with Silicon Valley who told me essentially that the day of no more regulations and the day of the Tech Companies being able to, arrogantly, avoiding oversight is over. Especially as we head into the 2018 and 2020 elections and really deal with the fallout of the Robert Mueller probe, Silicon Valley is very much wrapped up in this. Marks very striking that zuckerberg was not on capitol hill questioning and answering on behalf of these american questions. Days prior, saying what they were kevin not publicly. Scarlet talk about the legislation that has been introduced or is in the works to really limit some of the influence some of these big Tech Companies have. Kevin these Tech Companies are saying they are selfregulating themselves. I asked democrats and republicans if they think that is enough and they are rolling their eyes. Dsey graham, john mccain republicans and democrats alike have introduced legislation that essentially says if you have an ad paid for by a four government, you have to paid foreign government, you have to disclose it. Ads, why isnt it the same case on social media . Social Media Companies argue it is free speech. The response from lawmakers is we have to know who is making the free speech. Scarlet thank you so much for joining us. Julia know your customer. Scarlet user experience, i think they brought up. Paying in north korean yuan or russian rubles . Coming up, George Magnus joins us next about what to expect. This is bloomberg. Pressure rising ahead of President Trumps 11 day trip to asia. China called the u. S. Commerce departments refuse to this comes on the heels of heightened tensions with north korea, a problem in which President Trump will need xi jinpings support. Were joined by George Magnus associate at the Oxford University china center. Great to have you on, thank you so much. When it comes to the president s trip to china what will he want to achieve versus what is he likely to achieve . George i think what he wants to two main items on the agenda. Onely is north korea obviously is north korea and the other is trade. The whole America First rhetoric backump changed the rules into americas favor rather than chinas favor. What will we be able to achieve . Im not optimistic he will be able to achieve much. He will certainly want to keep china onside as an intermediary to keep pressure on north korea. And i think he will want to try to make sure that the chinese hear what he says about fair trade. Nke chinese, though, i thi they know how to flatter the president. And i think they believe the president is very susceptible to being flattered, which basically means that he can be played, from the chinese point of view. So that is kind of what worries me about whether there is any real business going to get done. Joe he sort of anticipated my next question. What do you see as the way chinese leadership places from their perspective leadership plays this from their perspective . What will they be going for and how you expect them to do with this . What are their goals . Joe, onspecifically, trade, for example, as we saw when xi jinping went to see the president in maralago earlier this year, i do not think the chinese are just going to show him a closeddoor. There are certain things in terms of trading standards or rules of trade, treatment of American Companies in china, that i think the chinese can be prevented to give. There are small very small, relatively minor concessions but they know it might be enough for the president to parade tweet about them, we had a fantastic meeting, and so on. With north korea it is a bit more difficult because i think the chinese, while they are in a way happy to be an intermediary, they do not want to do the United States any great favors. They do not want to see the north korean government collapse, either. You know, i think they will try to make sure that some sort of dialogue can be achieved maybe one day between the United States and north korea. Julia china has also just come off the back of a very Important Party congress. What we have seen is a consolidation of power from xi jinping. How do you believe he is now going to use that . Crackdownen internet how does that fit with the idea that china is now going to open,e reformist, more more globalized than it has ever been before . Because to be there seems to be a conflict. George that is the 64 trillion yuan question. A lot of people think having spent the first five years in office basically gaining control and complete command over the army and the party, that the inner reformer in xi jinping is just waiting to jump out. The form of what he has done and his behavior do not lend themselves easily to that conclusion. If this man has been so successful as he has been in getting control over some of the most difficult and complex organs of the state, it is really hard to believe that he junior able to instruct carters and officials in local and provision governments to carry out the Economic Reforms which were paraded with great fanfare in 2013. So i do not think that xi jinping wants to i think there are certainly changes he wants to make in the congress was quite clear that quote that social policy and Environmental Policies will get a big prioritization. But the idea that china is addenly going to discover thoughtful reform and liberal openness is not going to happen, in my opinion. Joe a big macro story that people are telling about u. S. In trading from global leadership, china expanding his leadership on trade and influence. And perhaps well the most clear examples of this outward vision one of the most clear examples of this outward vision what do you think about the prospects there . Will this become a meaningful avenue for the World Economy . George it is a big deal, joe. I think the western commentators and the media are quite focused on it. I am not sure western politicians are sufficiently focused on it yet. So, the congress was also remarkable for other things, basically getting rid of this kind of notion that has been around in china for the best part of 30 years that it would be modest and bite its time and it would not and b ide its time. I think the chinese have recognized now they are so big and their influence and economy are so big in the world that they cannot have a they can not leave a bigger footprint in the world. There is no question they are very serious about it. It might not make a lot of commercial sense in different countries. A lot of countries doing big deals in china have very weak Government Systems and very poor get capacity. But there is a struggle for eurasia going on and it is going to involve not just the indians in the japanese and the russians, but of course the United States as well. We need to think about how to cooperate with the chinese. Julia speaking of cooperation caught china has i believe 17 land neighbors who are clearly going to be wary of that move away from more modesty in the chinese republic. Russia, india. How are they going to respond to this . Junctureell, at this in 10 years time things can change a lot. At this juncture, for russia, muchs not too tension or problems because the countries are cooperating. I think india is a diddle is a different kettle of fish. The chinese are building ports around india are they call it the string of pearls around india they call it the string of pearls. And the indians did not like it and it not like the way the chinese are cozying up to pakistan, which they have always done, but it is now becoming a little bit more intense with the china, Pakistan Economic court or. Coridoor. They feel it makes them very vulnerable. India has its own wish for its own influence in asia and south asia, in particular. We have already seeing a few tensions between the indians and the chinese in the mountains in the north of the country. Julia always fascinating to speak with you. We have to take a break but we will get you back. George magnus, thank you for joining us. This is bloomberg. [applause] the dow and s p rising, the dollar erasing slight gains after the fed says its a solid Economic Growth. Scarlet i am scarlet fu. Joe i am joe weisenthal. Whatd you miss . We want to welcome you to our closing bell coverage. As we await earnings out of facebook and tesla, lets get a check of market minutes. U. S. Stocks rising. The nasdaq a laggard. Toixed read when it comes equities, but indexes at or near record highs. Underperformance of the nasdaq, but the story remains the same. Scarlet and the fed had a meeting. Joe and no one cared Congress Delay today on taxes. Scarlet estee lauder at a record high, up 9 . Profitg sales and forecast for the year following better than expected its fiscal First Quarter. Down Point Software 12. 5 . Cognizant technology off by almost 3 , a Fourth Quarter forecasts not of to snuff. Ision missed estimates, but guidance points to a big sequential decline. That has raised questions about the companys fundamental outlook. Joe lets look at the Government Bond market. Not a ton of action in either direction. You would not know there is an fomc decision. Much more excitement about the trump fed decision tomorrow. Twoyear yields up a little bit, 10 year yields down my hair. The greek 10 year yield,