500, and the nasdaq of higher. A big rally, the dow up five days in a row, the first time that has happened since the beginning of november. The best fivebased rate for the dow since april. The bulls are out, even for the nasdaq. Yesterday we had a mixed session. He nasdaq yesterday down 1. 3 there is follow through. Investors are buying the dip. , up 6 . Transfer the dow transport right now on pays for the best week since 2011. Lets break this down with the airlines, american airlines, united, delta all trading sharply higher. Behind this, a note from an analyst at ubs talking about the measure of revenue within the industry is likely to go up. There is strong seasonal demand. That could be a piece of what is happening with american airlines. An issue with a shortage of pilots for their airplanes and stronger than anticipated for demand. Breaking down the s p 500 rallied, all green. This is a great way to see what is happening sectorwise. All 11 sectors are trading sharply higher. Energy had been higher, the best. Financials up 1 . Lets look at some of the energy winners. We are going to see that pioneer has sharply higher. Some of the emt companies benefiting, even though we have oil down a little bit. Right now on pays for its worst week since october as opec has, of course, agree to extend production cuts to the end of this year. Not really helping oil. A little bit of uncertainty. The emt is trading higher. Bitcoin, what a wild ride. At one point above 10,000, above 11,000. From that to where we are now, down 20 . Lots of bubble talk. Not for the faint of heart, bitcoin. Shery thank you. In the scramble to 50 votes the republican tax bill is gaining ground. Senator john mccain has said that he will support the bill which is on track for a final vote. Legislation is headed into a arama of amendments. We now have john mccain. Senator Susan Collins is holding out. She said it would be difficult for her to support the bill. What are the issues . She has a host of issues. The obamacare individual mandate. She doesnt think that should be on the bill. She is pushing for the Alexander Murray plans to stabilize the markets and give certainty to the Health Care SystemGoing Forward to you once that vote by the end of the year and is looking for those assurances. She is concerned it doesnt do enough for the middle class. She has filed amendments that would get rid of carried interest loopholes used by Hedge Fund Managers to give more to the child tax credit. There are different issue she is working on. She could see the Corporate Tax rate go up. She would have another amendment for the state and local income Tax Deduction, an issue that the house came up with a compromise. The senate completely gets rid of that deduction. There could be a bringing the cobble together of a bunch of Little Things to get Susan Collins on board. She seems uncertain and is not committed one way or the other. Vonnie we heard that there is betweent in principle omey. Ker and to does that mean it will be in the final bill . A foregonet conclusion that will be a trigger of raising taxes if Economic Growth is not met, but there is a strong likelihood it will be a. That is critical not only to get bob corker, but some of the other hawks. Jeff flake of oklahoma. They have been pushing for this. We need to make sure that we are not going to be blowing up the deficit in a couple of years if the tax bill doesnt work out exactly like we are planning. Shery yes votes seemed so sir, but we are hearing that drilling the Arctic National wildlife refuge could be a problem because of the bird rule. This keeps coming up and affects every aspect. It is moving through reconciliation. It cannot add to the deficit after 10 years and it has to relate directly to the budget. Things that are specifically to taxes are ok, but if you play around in health care, drilling, natural resources, you could run into problems. This is another issue with the trigger. There making sure this does not run afoul. This is one of the issues why we saw delay on a boat yesterday and today. Theyre trying to get all of the pieces lined up. The worst thing that could happen is they get the bill ready, have 50 votes, and a parliamentarian says you cant do this. Tax reporterberg from capitol hill. Our thanks. Shery from the trump bump to the trump dump. It has continue to decline for the first three quarters of the year as the republican tax plan inches closer to law. Affectedthe dollar be question mark our next guest tackles that in one of his latest policy briefs. Bill klein is a senior fellow at the Peterson Institute for economics and joins us from washington. It is great to have you. We are seeing the dollar moving. 2 even with the momentum on tax reform. Why . Bill i think that the direction of the tax reforms impact should be to raise the dollar, but my calculation suggests it will be a smaller increase than one might think. As you point out, the dollar is almost 3 lower today than it was before the election last year. After the big surge to december last year, it has come down. The impact of the tax reform could be about to put us back to where we were last year at this time. It about Interest Rate differentials with other countries, or a symptom of a bigger u. S. Political risk . Bill if you look at the interestrate differential, that urge. Ins the s the Interest Rate went from 1. 8 to 2. 6 , then came down in 2. 0 . Mber to in may the decline of the dollar from the december high tract the interestrate. After may you had a widening gap that kept going down. I think that there was a political dysfunction risk. Also a north korea risk. Onnie right given all of the risks that are out there, how stable are we . Not just the u. S. Dollar, but how stable are currencies in general, including emergingmarket currencies . Bill i think they are sort of study as she goes steady as she goes. The tax impact is there is a big debate about it. Youtax policy center says are going to have this fiscal deficit. It is not going to close. It is going to be a little bit less than a percent of gdp. That would translate into, if that were the only effect, a 2 or 3 increase in the dollar. But there is a number of conservative economists that see larger growth affects and a huge import of capital to build new capital stock. If you do a back available, some , the back of the envelope some suggest an additional 3 deficit in the account which would mean a stronger dollar. There is some uncertainty. As for emergingmarket exchange are seeing ise the gradual backing away from unusual Monetary Policy phase has made it possible you dont have sudden shocks. Vonnie you just mentioned a just korea bid you mentioned north korea earlier. It is interesting to see if the dollar is not behaving as a safe haven when it comes to provocations by north korea. Why is that . Bill one way is that it is a stake surge. In. Stakes are much greater this kind of the situation. I do not think it is your normal safe haven phenomenon. A source of concern. , seniorwilliam klein fellow at the Peterson Institute for economics. Shery Mark Crumpton has more. May should mind her own business according to donald trump. The Prime Minister is making it clear what she thought about the president read tweeting antimuslim videos from far right group written first. Prime minister may the fact that we Work Together does not mean that we are afraid to say when we think that the United States has got it wrong and be clear with them. I am very clear that retweeting from britain first was the wrong thing to do. President trump tweeted that Prime Minister may needs to focus not on him but the threat posed by islamic terrorism. The white house is discussing whether to replace Rex Tillerson 2th mike pompeo according to white house officials. Tillersons relationship with President Trump is strained. Tillerson might be gone by the end of the year trump told advisers. Nancy pelosi is calling on democratic congressman john conyers to resign over allegations of inappropriate behavior. Posted calls the claims serious, disappointing, and very credible. Conyers is 88. According to a house official he has been hospitalized in michigan due to stress. Matt lauer is speaking out for the First Time Since being fired by abc news over allegations of inappropriate sexual behavior. In a statement, the former today show host says there is enough truth in the story to make him feel embarrassed and ashamed. He says to the people she heard he is truly sorry. He says some of what is being said is untrue. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries, i am Mark Crumpton. This is bloomberg. Shery Goldman Sachs ceo oblique blankfein is not getting on the bitcoin train. It doesnt feel like a currency. We will talk to Marc Chandler to get his take. This is bloomberg. Shery this is Bloomberg Markets. I am shery ahn. Vonnie i am vonnie quinn. Another turn in the bitcoin journey. The cryptocurrency has passed 11,000 per coin and plunged 20 in a span of a single session yesterday. Lloyd blankfein pointed to the wild swings as the reason for his reluctance on bitcoin when he spoke to alix steel earlier. Something that moves up and down 20 and a day doesnt feel like a currency. We will see. If it works out and gets more established and trades like a store value and doesnt move up and down 20 , and there is liquidity in it, we will get to it. Vonnie joining us now is Marc Chandler, Brown Brothers vp had ofenior currency. 9,000. Tcoins the median Family Income in the u. S. Is 45,000 to 50,000 dollars. Most americans are not participating in this. This is something that is from a for mostly wealthy people that have money to lose if they are wrong. Shery right now we are seeing trades being done in developing nations as well. How can you keep an eye on where the money is going from and to . The decentralized nature of cyber currencies, the volume number suggests a couple of centers in asia are big. Theyre putting a transaction cost, a Commission Fee here that slowed down. China makes up 20 of the market here in south korea and japan began regulating bitcoin. Because it is more regulated, people feel safer. We see japan and most recently zimbabwe when they had their problems. Shery the military takeover. Marc some think in zimbabwe a flight to save haven. Not to we tell investors go anywhere near this thing. Does it bring up any interesting issues . Marc a lot of people on wall street think the government is part of the problem not the solution. Bitcoin is about as unregulated a market as we can imagine. We can see what happens when there are no rules and referees. These things . The market is talking about today settlements on stocks. Some of the cyber currencies, it could be a five or six days between the time you buy it and the time it is delivered. The kind of risk this is, who knows where it really ball too . Is still seems very risky for individuals. Vonnie how much time are you spending on it . This week . Marc a be more because of the spike up people have fear of missing out. It is the big driver. Why shouldnt i have a piece of this . Vonnie we were speaking to william clein. Generallyrrencies are stable around the world. Do believe there is a lot of stability in markets . Marc we know that volatility is relatively low across asset markets in general. This might be the calm before the storm. Before the rate hikes by the federal reserve. The tax policies. We have an italian election next year. Rising u. S. Interest rates often coincide with emergingmarket problems. It is calm now, but it might not be calm for long. Shery that is a different scenario. The environment where Interest Rates rising in the u. S. And emerging markets such as asia, asian growth was no where it is now a will it wreak the same havoc as it did in the past . Marc we look at the balance. The countries who borrow dollars, dollar loans, the financebanks the ministries, governments, or corporates. At some point, that is going to squeeze them. They borrow dollars at cheap Interest Rates. Right now it is being held together because 10 year bond yield is down 10 points 11 points this year. They havent felt the pressure. There will be some countries that are more sensitive to the rising dollar. If we get a rise in longterm u. S. Interest rates countries will be more sensitive. Shery the point is that the dollar motorized that much next year. Where do you put the dollar next year and the year following that . Marc he was talking about the impact of the taxes. You did ask him about the interestrate differential. Im focusing on the interestrate differential because foreignexchange markets, five point 3 trillion a day. This week we have done enough currency turnover to pay for trade for a year. The countries that i begin to focus on his foot moves the capital markets. I see the decoupling of the dollar from Interest Rates. The change to the dollar this year is european politics. When macron was elected in france and merkels challenges , trying to challenge now. Macrons Approval Rating is going down as he engages in more structural reform. Angela merkel is having a problem forming a government. Problems in italy, and now ireland. Did the dollar not strengthen when the fed raised twice already . I think theyre trying to figure out what is the role of Interest Rates and what upset our general approach . The political angle aside. They will start at the tail end of the move. We could have one more push up from a technical momentum perspective. 120. 90 in september. We might go up another cent or two. Then we get the Big Development back to the dollars favor. Shery two saw the sector rotation happening yesterday. It played into that. Is this a trend where we see a selloff in one sector, but because you do not want to miss into otherve to buy sectors. Then the market does not go anywhere . Marc that is the story with to emerging markets. People have been participating and buying dips here they have not seen money flow into the u. S. Stock market this year. The issue is when do people relate the National Portfolios . The european equities on an unhatched basis. Fed,e if we get a powell still in the direction of rulesbased Monetary Policy, what happens to the dollar in that scenario . Marc stuck with the interestrate differ in tro. I think that the fed will raise at least twice. The fed says three times. I think around the middle of the year when the ecb is debating about tapering further or ending the Asset Purchase Program in september, the ecb Balance Sheet will shrink because people that borrow will begin paying the back early in the middle of next year without a penalty. I think the interestrate differential moves in the u. S. s favor. It pays to be long dollar against the euro. Paying about 20 basis points a month to be long u. S. Over europe. Vonnie Marc Chandler, Brown Brothers harriman head of currency strategy. Marc thank you. Michael mckee has an exclusive interview with the cleveland fed president at 3 00 p. M. New york time. This is bloomberg. This is Bloomberg Markets. Shery it is time for the Bloomberg Business flash. A look at the biggest business stories in the news right now. General motors plans on having a self driving Ridesharing Service on the road by 2019. This is according to slides posted on its website ahead of am an investor presentation. Auto sales slow following seven years of gains. Get ready for your smartphones to get even faster. Verizon says it will launch 5g service in up to five u. S. Markets next year. Ratherys 5g users than copper or fiber cables to deliver faster internet. The first city to get it will be sacramento in the second half of the year. That is your business flash update. Vonnie coming up, we will be diane black, who serves as the House Budget Committee chairman. Passing that tax bill and lots more. This is bloomberg. Beautiful picture of foggy midtown manhattan. Life at bloomberg World Headquarters in new york city. Shery this is Bloomberg Markets. Lets get a quick check of the major averages. The dow is well past 24,000, another record high. The s p 500 all sectors in green,en cover in the up 9 10 of 1 . The nasdaq is being led by apple and amazon. The s p 500 bank stocks the rally over there, not yet over. We are seeing progress over tax reform in congress, that also played into the market. Vonnie we are getting headlines from the opec meeting. Crude is up, the foreign minister is confirming the ninemonth extension, saying libya and nigeria are interested in the deal. This afternoon, heres Mark Crumpton. Just discussing the Senate Republican tax bill. It has gotten a boost. John mccain has said he will go forward he will vote for it. No one has taken his support for granted. He shocked the political world last summer when he voted against an attempt to demolish obamacare. North korea is releasing pictures of its newest missil