Lets get a check of the first word news with mark crumpton. Ark a brooklyn man wearing pipe bomb attachment velcro and zip ties set off an explosion, injuring himself and three others. New York Governor Andrew Cuomo called the bomb lowtech and was adamant that the city remain vigilant after the Port Authority and several subway lines were shut down temporarily. All the service will reserve. Ume. Lets go back to work. We will not allow them to disrupt us. Thats exactly what they want and thats exactly what they are not going to get. Mark officials are calling this an attempted terrorist attack. Identified has been as a 27yearold. He suffered serious burns while the other victims had minor injuries. The largest of those wildfires in Southern California is moving north. Hundreds have fled their homes in Santa Barbara county. So far, the blaze has burned more than 270 square miles and forced the evacuation of 30,000 residents. Israeli Prime Minister benjamin that yahoo was in brussels today to meet with Foreign Ministers from the european union. Facing criticism since the United States officially recognized for his long as israels capital, Benjamin Netanyahu presented his country at again to her of eu security. Conference, the eu Foreign Policy chief said jerusalem must be the capital of both israel and palestine. Russian president Vladimir Putin made a surprise visit to syria and made a point that troops should begin withdrawing. It is the first time that president clinton has been the russiannce he sent forces there to back president assad in the civil war. 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 bitcoin has landed on wall street cou. Cryptocurrency surged in its first session. We caught up with ed tilly on the appetite participants so far. At lunch, we had about 12 nonparticipants. Those are registered traders. We are up to about 22. And we will not see clarity from that time, but we will see a big change. We will see that build over the days and weeks to come. Shery we are joined now with more on bitcoin. That fear shortselling at least for now. You can still short sell and i think you have to be a pretty brave trader to short sell an asset thats games like 90 in the past couple of weeks. In the past couple of weeks, but 1500 or more . Youre talking about Something Like 100,000,000 . Thise bitcoin became quarter trillion dollar market cap with not just bitcoin, but all the crypto currencies. What is it now and what will it be out with all the other contracts . Rob its about 280 billion in cryptocurrency overall, pushing 400. Part of the creation of it was that they agreed on a finite amount. There will not be more than a certain amount. Were not quite there yet. The irony of the past day is that was really created as an alternative to Financial Institutions. These number of years later scum of the Financial Institutions look at these returns and they want to get him and make use of it. At the same time, just the idea of Digital Currency even has Central Banks talking about issuing it. Its a new idea. Shery the future of that depends on how easy it is for investors to approach bitcoin trading. How has it been so far . Rob demand for the futures is very strong. It should always be pointed out that you are not trading bitcoins. These are dollars settled contracts. What we need to look for in the coming days is arbitrage. We think arbitrageurs will bring the spread. Shery you are seeing the spread more than 1000 already. Said hes aceo former trader himself. Why are traders bidding off contracts today . It can be a supply and demand thing because supply is cap. They cannot be fundamentals. What is pushing the price up . Rob i think. Hype i think. Beget more interesting gains and is a tremendous amount of money and mutual funds and Pension Funds and all these places, institutional money that they cannot by bitcoin. They have to buy a regulated product like a future. This is their first opportunity to have a piece of it. Theres probably a lot of that money still on the sidelines. Whate we do have to ask you think your chances of a whale cornering the market are. Rob we had a very good story about the whales and its true. Theres nothing that says they cant work together. I think one interesting aspect of it is that they are believers. This is more than a currency. Its kind of a philosophy. It will be interesting to see if they trade their commitment to an alternative Financial System for quick profit. Shery it will be interesting to see what regulations come forth. Thank you so much, robert, here with the latest on bitcoin. N tax cuts. Ice o we will talk to the president of the committee for responsible financial budgets. This is bloomberg. Shery this is bloomberg markets. Im shery ahn. Vonnie i am vonnie quinn. We are halfway into the trading day here in the u. S. Abigail, how are things moving . Abigail small change for the major averages. Modestly higher, you can see the tech heavy nasdaq is up the most, leading up 4 10 of 1 . There is a sense of apathy here on investors waiting on republicans to hammer out a tax bill that they can present to president trump, plus the explosion in times square not creating a sense of risk off. That iss something unlikely to affect the Corporate Outlook at this time. Really small rooms here. Where we are seeing small moves is bitcoin. Lets hop into the bloomberg and talk about that spread. What we are looking at is nimbly we have bitcoin and then we have Bitcoin Futures surging in the first 24 hours of trading on the ceo. The basis of 1000 is where the arbitrage possibility is. Us commodityg to strategist at bloomberg and he was saying that futures should drop down to the spot price. The reason that shorts are not able to do that right now as a matter of liquidity is that when bitcoin future start trading next week that there could be more liquidity and perhaps we will see a little bit more of less of a spread as the two meet each other. We will be waiting to see. The bitcoin surge that we are seeing for futures certainly helping a few bitcoin related companies. You can look at right block chain up 20 . Thats pretty amazing. This is a microcap company. Its formally a Biotech Company and they still have their biotech businesses. Theres a pretty high storage of 10 , but they do focus on buying, but now theyre trying to buy crypto and block chain businesses. We also have the like of nvidia train higher. They make chips that go into cryptocurrencies. Take a look at overstock. Com up 22 . The online retailer does except bitcoin as a form of payment. We will be digging into that and the stock of the hour at 12 30 p. M. Its an interesting story there. Ly, aly as seem like lack of volatility for bitcoin. The type of volatility we have seen for bitcoin is only in big stockmarket crashes. What we are looking at is in white the bitcoin volatility over the last month. Last week hitting 100. 5 . Have the, we volatility of the s p 500 during october of 1987 or during the crash of 1987. Blues october of 2008, the big financial crisis. Lots of volatility for bitcoin and akin to the kind of volatility we have seen during stock market crashes. Vonnie abigail doolittle, thank you for that break u down. Shery Congress Passed a twoweek extension of federal funding that avoids the shutdown for the shortterm. Bethe same time, there will rushing to finish work on tax legislation before leaving washington for the holidays. Our next guest says the biggest loser in the text discussion is fiscal discipline. Maya mcguiness is with us now from washington. Thank you for coming on the program. We even saw a wellknown deficit hawk like senator jeff flake buy into the senate bill. Why do you find a problem with this . Maya the whole argument that this is not going to be bad for the near record levels of National Debt that we have has been that the tax bill is going to create so much Economic Growth that it will end up paying for itself and create more revenues that actually bring the debt down. There have been a whole list of studies that have shown unfortunately thats not even close to the case. The gross from this bill, which reform can tax create Economic Growth, but it wont be nearly enough to offset the whole cost of the revenue lost. This means the deficit and the debt will grow up in that slows Economic Growth further. We are following into a trap that we do so often washington, which is lets focus on the shortterm gains, which means lots of tax cuts for all of us, but we dont have to pay for them. Thats really unfair to the next generation and the future, but its bad for our economy right now. We make up a lot of fake promises to justify very shortterm and not very smart policies. Vonnie what ever about the individual tax cuts, we are looking at a story today on the bloomberg that suggests that people wont even really feel them. It was a nice payday for a day or two, but many families did not see the difference. What about Corporate Tax rates . Is there potential to generate a lot of growth . Even if they are deferred, might we get growth next year because corporations can deduct everything they invest, for example . Maya i think thats an excellent point because the tax reform bill has been designed to to do one thing and yet the talking points about it have been a second thing. The discussion around it has been that this is all about middleclass tax release. That really isnt the purpose of tax reform. In many ways, i think the focus of tax reform should be how you grow the economy. Many of the things included miss tax bill a lower corporate text rate, thinking about tax in the global environment, looking at things that will incentivize more investment those are indeed how you grow the economy if and this is the important piece if it does not simultaneously add to the debt because higher debt levels shrink the economy. The corporate side of the tax bill could be progrowth though not nearly as much as folks are banking on what these big crazy numbers that we are hearing. Then the big question is how is that gross spread . Is it across the Income Distribution . If its all deficit finance, what people are getting they may be shortterm tax cuts. It is a big mountain of debt that is added to our already record levels of debt. Shery the Treasury Department today just released a report saying that the taxcut will pay for itself with 2. 9 gdp growth. They not only accounted for the tax cuts but regulatory reform, infrastructure development, and welfare reform. If you have these other conditions, would you give them the benefit of the doubt that it could produce big enough gdp growth . Maya i dont think the thing we should be doing when you talk about changes to our economy is giving the benefit of growth to more borrowing. What this one page finding from the treasury does other than confuse the debate is that it just claims an answer. It says we are going to assume 2. 9 growth and then back into how to get it there. Thats not a study. Thats not an analysis. Thats not the deep kind of thinking we need around these Big Decisions on how to detect reform. That saying heres something i want to be true and i want to claim that its true and i will fill in the numbers to make that claim based on something. Its really an unfortunate piece of paper that they put out today that i dont think it is helping us do what we need to do, which is look at how do you craft a tax bill and other policies, regulatory reform, infrastructure that will do the most to grow the economy . Lets come up with a comprehensive economic plan thats good for the economy and the fiscal situation in this country, but lets not make up numbers w while we are doing it. We are falling into a sinkhole of sub optimal policymaking. Vonnie it looks like thats already the case. If the gop get something to the president s desk, everything you said is going to come to pass. What then would be the answer because republicans will turn to welfare reform . Would you and your Committee Want welfare reformed an in order to pay for these tax cuts . Would that be responsible . Maya the right way to fix this problem has been the same way it is for years now, which is to put together a big comprehensive that bill with all sorts of the budget on the table. The biggest things that will fix our huge fiscal challenges our tax reform that increases revenue instead of shrinking it. Not what we are about to pass in all likelihood. And structural changes to our mandatory Spending Program like social security, medicare, and medicaid. I do not think that by taking away revenues from the government but you can turnaround and say we have to do more to fix those other programs. We are going to need to go back and look at how much revenue and how much reforms for these programs are necessary to get the fiscal situation on a sustainable path. I think the big tax cuts massively complicate the overall issue. It makes the problem worse and i fear we are going to have to look at feeling parts of that tax bill for new parts like a carbon tax or other kinds of revenues to fill in the difference. Shery thank you so much for your thoughts, maya mcguiness, committee for the responsible federal budget. Vonnie breaking news now apple has confirmed it is buying the music recognition app shazam. It is taking ownership of one of the first apps to demonstrate the power of the iphone. You can use shazam to recognize songs after hearing a few bars. Wascrunch last week we talking about 400 million because shazam has been around for 18 years. Some of the early investors were carlos slim and at one point it was seen to be a unicorn. This would be a bit of a disappointment as an exit. Shery are we that old . 18 years. It seems like yesterday. Vonnie i downloaded it when it came out first. Shery i wish they had more overseas songs. They seem to only have english ones. Coming up, amazons bigtime push into apparel. How the move away from big names brands is pushing it. This is bloomberg. Shery welcome back. This is bloomberg markets. Im shery ahn. Vonnie i am vonnie quinn. Traditional power retailers bday Apparel Retailers beware, amazon has become the biggest apparel sales in the u. S. The tech giants ascent has been buoyed by a surprising trends the erosion of brand loyalty by millennials. Joining us now is lindsay wrote. This is fan fascinating. You say millennials where where and noname brand board amazon brand . Lindsey no one knows what we are wearing nowadays. Gone are the days where you want to have a branded shirt. Remember when everyone was dressing head to toe and abercrombie . Nobody does that anymore. You can put together these high low outfits as long as they look good because Millennials Want to get good value. I think this is true for everyone and not just millennials. They want the value and they want to put together a unique look and they dont care where it comes from. Vonnie theres so little differentiation. If its a praying, people want supreme. If its abercrombie fitch, its very much all the same. Shery especially when it comes to basic apparel. My question is when you talk about amazon, you dont think fashion. How are they going to differentiate themselves with all these other online sites that are really famous for apparel . Lindsey i dont know when the last time you shop for fashion on amazon is. Its a difficult experience and kind of unpleasant, but they sell a lot of basics. If you are looking for sweatpants and searched sweatpants and find something that amazon is saying technical enough without a good price and its made by the same suppliers like nike or lululemon, maybe you will give it a try. Free shipping and free returns so whats the risk . Vonnie is it trying to beef up its effort in order to take over the world of Apparel Retail or is it supple mental to its other retail . Lindsey its had a fashion unit for a long time and it has not been successful. They have tried a lot of Different Things and have not gotten traction. They have a popup downtown with calvin klein and its all calvin klein products, but its all amazon run deliveries. Maybe we will see more collaborations. They are doing more private label and using the same suppliers that the big apparel giant sees. Sell on my site or im going to copy cap your goods or is it to say im doing what youre doing just as well as you can . Kind of clear at this point, but amazon sees apparel as a key market they need to get into because everyone buys clothes. If they can get a chunk of that market, that will be adamant for them. They are cheap to ship and relatively cheap to make. Shery what will it mean for those brands . Lindsey thats a great question. Right now, the attitude is either you can get a partner and you can either take walmart like a lot of brands have done lately or pick amazon. There are risks to both, but for brands, this means you better have a really great differentiated product. If you are gap and you are selling these basic pieces, you dont have a lot of pricing power. What is the reason for people to come to you . Rupp, lindy thank you for that story. Shery big money, butte ideas. W big ideas. We will hear from bruce blatt with under 250 billion worth of assets and management. This is bloomberg. Vonnie coming in there on a beautiful shot of midtown manhattan. From bloomberg World Headquarters in new york, i am vonnie quinn. Shery im shery ahn. This is bloomberg markets. Take a look at the markets and they are all gaining could the dow up for three consecutive sessions. We are seeing telecom and tech leading the gains could cryptocurrency going higher after bitcoins started trading on the cbo exchange. Energy stocks are leading the gains. Brent surging after news that one of