Side. Yesterday democrats accuse republicans of just wanted to give tax breaks to the rich. Orrin hatch of utah lost his temper. I just think it would be nice tonight before go home to just acknowledge what this tax cut is not for the middle class, it is for the rich. And a higher think about higher wages is a good selling point. Companies dont just give away higher wages. Visible c this bull crap gets old. It is not right. It takes a lot to get me worked up like this. David but he did get worked up. In the end it made it out of committee but there is a lot to sort out to get support of the full senate. Joining us now is craig gordon and kevin cirilli. Greg, lets start with you. Is is unusual for orrin hatch to get this angry . It was a long session. Criag it was a long night any definitely got under his skin. Harvick is because the chairman is speaking the truth. It is actually quite unpopular out there in america. People have figured out most of the benefits dollar wise go to the wealthiest americans, and a little less goes to middleclass americans. Orrin hatch can pound his fist, but he is facing up to some uncomfortable truths that will hang over this plan as they try to get into the senate and reconciling with the house plan. Shery kevin, given the pressure on the gop to get any legislative wins, could this help the tax bill . Kevin a lot of people say they might get a win, that is of the right one they want . If democrats in states like virginia, michigan, wisconsin, pennsylvania, key battleground states were President Trump performed well in, if it is not the right win, that could come back to haunt them in the midterms. What i got up to capitol hill i was speaking to sources in the senate. We should know about the storied past between senator brown and chairman hatch, earlier this year senator brown was part of the driving force that led a boycott to break the koran m so they wouldu not be enough votes to move forward with the nomination process. They have had a backandforth and that clearly bubbled over last night before the Senate Finance committee ultimately moved this bill out of committee, sending it to the senate for a vote likely the week after thanks giving. We should note Vice President pence speaking last night at the conservatives trying to drum up support. They are focusing who they want to address their concerns to. People like senator ron johnson sons earns over the past as well as senator Susan Collins who has concerns about the individual mandates. I would also note that senator john mccain of arizona who has frequently but has with this administration has said several times he is concerned now this is not following a process known as regular order. All of that could spell potential problems for one lawmakers when lawmakers get to the point where they are ready for that note the week after thanks giving. David it seems fair to say probably orrin hatch will not get browns vote, but what about getting to 50 . The magic number is 50 votes. Then the Vice President can cast the 51st boat. They only have two despair until the alabama election. As we went to the senators that kevin just mentioned, and others like jeff flake and bob corker who have been hostile, how do they get to 50 . Aig that is the fundamental problem with this bill. Ron johnson is upset that the tax cuts are not as big the overall Corporate Taxcut. Take care of senator johnson, but now you have senator collins because he had the over the Obamacare Repeal to pay for it. Every time you take something, you take subbing out that hurt someone. Thats an important point distress. The republicans had a good day yesterday. They passed the bill in the house, it is onto the floor. Kevin cirilli just rattled off the senators and he could probably name sixth more that are not supportive of this bill and have a long way to go before the gets a yes. Mitch mcconnell and President Trump have their work cut out for them on this bill. Shery there are no senators from high taxed states but there are lawmakers in the house that need to approve the repeal of the salt reduction. How will that happen . The Staff Members of the House Financial Services committee had a meeting earlier today. Most of their bosses are out and joined the weekend already, but they were talking about that issue in particular. There are several republicans who are concerned about that. Lets take a step back because at the end of the day the republican having controlled congress does past this and he gets to the president s desk, ultimately middleclass americans in states like california, new jersey get a tax raise, that could really spell trouble in 2018. Even if their 401 k s are going up. If they see a deduction because the tax break. Theal observers denver the republicans were able to hammer that. This is a much more volatile time. I can tell you if you are an investor in watching this for what is coming next what is going to happen after tax package, the groundwork is being for inday as we speak the First Quarter of next year lawmakers to get to some type of the regulatory initial reform. Deregulatory financial reform. David thank you both for being with us. Shery we are now heading for a second week of losses for u. S. Stocks. Lets get the details from abigail doolittle. Abigail at this point we are looking at small moves through the major averages. Mixed trading averages. The dow and s p 500 are down. The tech heavy nasdaq up fractionally. If those gains hold, another record close. Dow transport down weighed down by some trucking related shares. This as amazon announces an app to say truckers time. Its amazing all the markets amazon is entering into. This follows yesterdays big rally, the pullback on wednesday. We are also looking for mixed performances for the major averages. This is 5917, the weekly gains or losses. In theek we see those first down week for the major averages in nine. This week the tech heavy nasdaq and white is up for 710 to 1 . In blue at the dow, down to tens of 1 . If it holds down on a weekly basis in the s p 500 is between gains and losses, august is the last time we have seen two weeks of decline. T momentumear shifter stockserm. Perhaps it will work itself out a bit. Lets the was happening with the commodity complex. Looking at a nice rally. Commodities have suffered this week, but we have oil, gold and copper all higher. Helped out by the fact the dollar is weaker. The bloomberg Commodity Index is down. At the lows it was on pace for the worst week since june. Grounding it out with a few movers. Homebuilding stocks trading higher. New home shares came in at an annualized rate of 1. 2 9 million, rising 13. 7 and forwardlooking permits rose 5. 9 . There could be some solid Building Activity in the future. Homebuilding shares getting a bit higher on that activity. Shery abigail doolittle, thank you. David we will stick with tax reform. We will talk with shawn golhar, head of Public Policy at barclays capital. We will see how markets are rising in the latest of elements. This is bloomberg. Back. Welcome this is Bloomberg Markets. David lets check in on the bloomberg first word news this afternoon with mark crumpton. Mark President Trump has started to pay for his own legal bills in connection with the russia investigation. Up until now the Republican National committee covered the fees. The president wants to pay Legal Expenses for his staff. While there is no law against it, critics say that could influence the testimony of people who accept the payments. The white house has requested a 44 billion hurricane aid package to help recovery in texas, florida and puerto rico. That is smaller than demands from the areas. This is President Trumps third request, bringing the federal commitment close to 100 billion. Former caracas mayor has escaped house arrest inflated columbia. The high profile Opposition Leader was accused of plotting to remove venezuelan president nicolas maduro. After a few months in jail, he was released for Health Reasons and placed under house arrest. The highest level chinese envoy to north korea in two years arrived in pyongyang today. Tensions between the two nations have risen over beijings tightening of sanctions of President Trumps calls for more pressure on north korea to abandon its Nuclear Weapons program. It is not clear whether the envoy will meet with north Korean Leader kim jong in. Kim jongun. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Shery thank you. Gary cohn of the White House Economic Council says ceos are most excited about the tax overhaul. How is Corporate America reacting and how much is passage priced into the markets are ready . We are joined by shawn golhar at barclays capital. What are you cheering from your clients . Shawn a lot of them start off optimistic. As the year has gone on with the aca, the failure to repeal, they have reassessed the situation. In the last global macro survey over one third of the clients think there is a chance of getting tax reform done. David it will affect people in different ways. Are there particular elements people are focusing on . Shawn state and local deduction, mortgage interest, property taxes, but also the interested up the ability of debt is something of interest for the highyield clients. Our team put out a note where they talked through this. The application being this larger number of thats the difference of using the house signing on the senate side could lead to additional default. David appreciation, amortization. It is wondering if congress on purpose did this. Help generate more revenue to help her get the corporate rate. This is a 1. 5 trillion, 10year tax cut. If that enormous number. If they get a corporate got a 20 points, they had to find a lot of different ways to keep it in budget resolution numbers. Shery it depends on the timeline. Given the Alabama Senate seat could be up for grabs, does that affect the tax deadline . Shawn im glad you asked that. We just put out a note on this issue. The december 12 election is really important because if the republicans lose the Alabama Senate seat and the majority goes from a 51 to 49, it takes the ability to pass tax reform are difficult. We think december 12 is an important deadline for them. The senate is aiming to detect reform tax cuts after thanks giving. Thanksgiving. David when the tax cuts will hit what affects will have. One thing we hear is individual tax cuts really hit the economy faster than corporate ones. If we are going for corporate investment, that takes time. Shawn you are seeing the delay on the Corporate Tax cut on the senate side they one year. Jcthe individual side, the came out with a distributional analysis and they showed after 10 years you will see tax increases for those with incomes less than 75,000 a year. Which is slowly getting out to the news flow. Shery the fact they need to keep the longterm deficit at bay, deal expect the custody temporary or permanent . Shawn these would be temporary tax cuts. Some provisions might be permanent. Whatevers of congress were asked about this issue on incomes less than 75,000, they said in 10 years we will extend the tax cut which should get a lot of deficit hawks, if they still exist, get them worried. David there is all sorts of things of the air. If they had to pull back and a limited the individual mandate, thats a lot of money they have to make up some other way. If they take the approach on state and local taxes, they have to make it ups mother went. What might happen . Shawn we were talking about a corporate 25 . If you take it from 35 to 25 points, you dont have to make of so much revenue elsewhere. Daca will be very challenging. The aca will be very challenging. The republican senators voted against it. Now you look at this tax cut legislation. There are a handful that inflates. Polewardon johnson, worried about how the passage largescale tax cuts. Is the 25 tax rate for corporate still in the cards given President Trump called for 20 red line . Shawn there are people with a lot of different red lines. This is a long negotiation. Tax cuts have to be a bit of a backandforth. They have to find some way to do this. It will be interesting to see how the senate will keep this within the bird rule and make it compliant and attendant and year, 1. 5 trillion number. David when . Shawn we are slightly above the even odd to get the taxcut done. Sometime from now to the end of q1. The alabama election changes the calculation with the december 12 election. That makes the senate really want to get this done. Even if the senate does pass the tax cut, you have to go to a Conference Committee to iron out all the differences on property taxes, interested ability of debt, the corporate rate. They will have to vote on this again. Shery one segment of the market affected by this shawn we have seen a lot of change in that side. Obviously the state and local deduction has been something of interest. We have taken quite a bit on this on published a handful of notes on the issue. We are waiting to see what the fed will put out there because you are seeing some important differences, especially on the state and local and property tax issue warehouse members of said thats an important distinction they are unwilling to remove completely. Shery always great to have you with us. Shawn golhar, had a Public Policy research at barclays capital. David Robert Mueller is accused a former Truck Campaign chairman of money laundering. Whatever the reason, we have trouble making the numbers add up on some extravagant Home Renovations that mr. Manafort reportedly made. Live from new york, this is bloomberg. Shery welcome back. This is Bloomberg Markets balance of power. David what Robert Mueller charged Paul Manafort in a criminal indictment the charges including laundering millions of dollars to support a lavish lifestyle. Patrick harkers real estate for bloomberg. You took a look at the numbers supposedly spent on his various houses and found some interesting or perplexing things. What did you find . Patrick the indictment said million to ad 5. 4 Home Improvement company in the hamptons, long island. The Building Permits in new york city dont show 5. 4 billion worth. David what did they show . Patrick 5. 1 million. Shery thats a big difference. Patrick there may be some on a spec the costs here there. Shery are there any possible explanations you can think of . Patrick i think thats a good one. But every cost needs to show up on a building permit. Jobs change and paperwork shery what were the red flags . Patrick aside from the 4 million . I think he would be upset if your contractor came back and said it was going to be for Million Dollars more than he originally thought. 4 million. Numbersd to end of row row numbers. The famous from the bank in cyprus. Payd most of this when we homeimprovement bills we dont go to the bank of cyprus. Patrick you would think if you are a contractor and getting the dollar amounts from cyprus, assuming it was legitimate, you might say that is funny. Certainly your banquet say what is going on with this your bank would say what is going on with this . Shery i read your article. Some of his friends were saying he was a big spender. I dont think we would do that. Is there a nice for nation . An explanation . Patrick partially. Its a nice house and a nice part of the hamptons with Tennis Courts and a pool and a pitching green. Shery look at that house. Patrick he spent 35,000 on a pergola. David this is a criminal indictment that could lead to a criminal trial if he does not settle beforehand. Will he have to give some excellent nation to the jury . Most will find 4. 5 million a large number to miss. Patrick thats a good question. We heard from a contractor in south florida who did some work on a home that the metaphors manaforts wown in florida. You heard from an investigator but it was on the up and up. Shery real estate is a good way to launder money, isnt it . David something i didnt know before i read this article. Patrick real estate transactions can be ok, if youre buying a property through an llc. And for the reason costs can someun and you can hide and pay some or for a job, that might be one way to clean money. And it adds value to the home. The money you spend on improvements become legitimized. Patrick clark, thank you for joining us today. Shery , cap the negotiations are in their fifth round. Mexico is willing to compromise on a review of the free trade agreement. We can tell the with the country want to return next. A quick check of major averages. We are seeing marcus declining across the board. Thafter the best gains in two months. The s p 500 heading for another loss. The dollar has been reacting to development in washington. We have the special counsel muellers ongoing probe into Russian Election tampering as well as tax reform. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go t