Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power

BLOOMBERG Bloomberg Markets Balance Of Power December 14, 2017

We are seeing the dow and is picked s p 500 in negative territory. Lets get the latest from julie hyman. Julie we have stocks pausing as at these levels and going sideways at this point after the dow and s p earlier touched records. It seems as though there is a drag from the bit from the material stocks. That is the group that is doing the worst. As we have had stocks continue their rally, we have also seen bond yields creep up a little bit. Dividendmeant the yields of stocks is no longer as competitive with the dividend yield of the s p 500. That is the whitehall im. It is looking at the ratio between the two. You are seeing what it is looking like for japanese stocks. This is the first time we have seen that yield for the s p 500 ,elow that of the bond yields the First Time Since 2011. Interesting phenomenon. Those taking a look at Telecom Stocks as we await the verdict from the sec on Net Neutrality. As we heard shery talking about, that meeting has been adjourned temporarily. You can see the Telecom Companies are trading lower than some of the smaller companies. And windstream, not necessarily what you would expect if there is going to be a repeal of this Net Neutrality. We will watch these stocks to see if there is any reaction. Elsewhere, we are taking a look at the toy makers. The toymakers are on the rise today. Hasbro which has the rights to star wars toys rising ahead the release of the next star wars movie. There has been a lot of reviews of that, largely positive. A lot of expectations of what kind of merchandise we could see push through. There is also rising as continues to be chattering about a deal at some point between these two companies. The stocks continue to gain as overall we are not seeing as much strength on the major averages. Shery thank you. Lets get a check of a live shot at the sec vote on the amount on the Net Neutrality rules. They have resumed voting. That was adjourned a while ago unspecified factor to hearing the meeting is back on. They are expected to roll back those internet project protections. We heard earlier that sec chair had the votes to roll back those internet protections. We will continue to bring you updates as we get them. Kevin so much to watch. So many people watching that ruling. Elsewhere, there has been a legislative victory for the gop as republicans announced that the house and Senate Negotiators had reached a tentative deal on their tax overhaul. For the bill,itch President Trump sold it as a win for everyone. Pres. Trump we want to give you, the American People, a giant tax get for christmas. When i say giant, i mean giant. A couple of republican senators are objecting to how giant the tax cut for the wealthiest earners will be. Political reporter is on capitol hill with the latest. Break it down. We have a few holdouts. But ultimately, minute momentum is on the Trump Administration side. It certainly is. It would hard to be it would be hard to see this collapsing. We have a couple senators were not thrilled with the fact that the changes that have been , including the top of rate cuts from 39. 6 to 37 for the highest earners, that include senator marco rubio of florida who is upset that money they raised is going to the top rate cut instead of an extended tax child credit. He wanted to make it refundable. Ator susan top Collins Susan collins had told us she does not want to cut the top rate of 39. 6 at all for millionaires. This could be a problem for her. Mean senatorhis Susan Collins could have more leverage in order to get those other bills she wants, to stabilize the Health Care Insurance market . Asked for those bills per chu got a commitment from senator mcconnell that risk programspass to stabilize the obamacare markets. The house is not fond of them. It has gotten a chilly reception from speaker ryan. It is unclear if i will be met. What is true that the tax bill will probably come up in come up for a vote before senator collins will know. She will have to roll the dice on that. Kevin roll the dice on that is facing aissue lot of pressure in her own state. Let me ask you a question about the state and local taxed at auction. When we are gearing up for 2018 midterm elections, with the democrats seething with the democrats on their win in alabama, could we see the districts are in play in 2018 as a result of this item in the tax reform . Sahil it is already happening. You are seeing republicans in new jerseyt and facing a lot of pressure. You are seeing their opponents highlight the fact that this tax bill a limit its the state and local texted action with an exemption of up to 10,000 for what was property taxes. It could be sales taxes now. That is those are significant changes. Absolutely, the difficulty with tax changes is always there will be winners and losers in a reform as big as this. The losers tend to scream louder than the winners do. I feel certainly there will shery we could see a final tax bill by friday. What are we expecting to be incorporated . We knew there were disputes over the corporate rate, over the dead actions over the deductions. Sahil what we are hearing is the corporate rate will be set at 21 . The top individual rate, 37 percent, the passthrough entities will get a reduction of 20 . Exemption. The estate tax, exemption will be double. It will not be repealed. These are the components we feel are set in stone as they negotiate. Nothing is final until it is final. If they have a moment of desperation, they could turn the dial on even these items. Our understanding is that these things are pretty much set in stone. Shery thank you. Our National Political reporter on capitol hill. Secn coming up, it chairman has the vote. What comes next for his proposal to on Net Neutrality . This is bloomberg. Kevin this is Bloomberg Markets balance of power. Im Kevin Cirilli in washington. Shery im shery ahn in new york. Lets check in on the bloomberg first word news. That politico reports close confidence of paul ryan says this may be his last term as speaker of the house and that he will not stay in Congress Pass 2018. Politicos interviewed with three dozen people who knows right. The speaker wants to serve through election day but retire ahead of the next congress. Two republican senators are criticizing tax cuts for the highest earners. The opposition by marco rubio and Susan Collins would kill the tax bill when it comes up for a vote next week. Still, neither has said they would vote again for the package. Leaders from the 2018 from the countries arrived in brussels for a summit on security and advancing brexit talks. Lawmakers are debating whether progress has been made to move onto the second phase of future relations and trade. The eu will also officially endorse a new system of defense cooperation to streamline the way nations cooperate on security matters. The new report says American Teens are losing interest in cigarettes. So much so that marijuana and of aping have now surpassed it. The federal Governments National institute on drug abuse found 23 of High School Seniors claimed they had used marijuana in the past month. Usedthan 17 say they have a gaping device. Only 9 say they smoke cigarettes. Consumption of most substances was added to decade low. Was at a decade low. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Thanks, mark. As republicans are making their closing arguments for tax reform, how are the democrats responding in this final sprint . We are joined by steny hoyer. I just got back from alabama. I want to get to tax reform and a second. There is breaking news reporting that speaker ryan resigning after the midterm elections. What do you make of all that and can democrats take back control of the house . Know what i do not speaker ryan is thinking. He has not talked to me about it. I am not surprised. Speaker boehner left because he had a deeply divided party. It made it very difficult for him to pursue rational, reasonable, positive policies. Frankly, i think speaker ryan is confronted with the same environment. Maybe he thinks there is some way he could more productively serve. Shery we will have to break in for a second because the u. S. Fcc has voted to end obama era Net Neutrality. Expected. Idely the proposal came last month from the fcc chair ajit pai. We are getting the vote tally and it has ended the obama era Net Neutrality rule. This is a move to d regulate the telecom and cable industry. Is undoing the 2015 classification of broadband as a common carrier service. We will get you more of the latest as soon as we get them. For now, lets get back to the congressman. A taxe talking about reform and what happens in congress next. Once a final tax bill is passed, first of all, do you expect that to carry out, to carry on . We are hearing from different senators that they could have reservations about the final bill. Rep. Hoyer again, i havent seen the conference report. I asked the majority leader a few minutes ago, was it available to be looked at . Was not. Ted it i dont know exactly what they have done. I agree with you. I dont think it is a sure thing that it will pass the United States senate. First of all, what they have done is made it a bill that needs that is over skewed to the wealthy and america. Had ause and senate bills millions of people getting a tax hike. 62 plus of the wealthiest people in america were getting 60 purdue 62 of the benefits. This bill would have also had an impact. I think this conference report will also have that impact of the 25 billion cut in medicare next year. This is not a bill the American People support. The polls show they overwhelmingly oppose it. Shery cory johnson, right now, neting us on the fccs neutrality decision for you have a question for the congressman . Im sorry coming using to have the same cold we all have on the east coast. Im curious about your take on what the fcc is saying about Net Neutrality. Big contributors come in your most recent campaign. I wonder how you look at this Net Neutrality rilling and whether you think they comcast of the world should have the upper hand or companies that provide the internet . Rep. Hoyer i think we are very disappointed of the fcc action and we think in a democracy, that free access not free, but access to inner to information on a nondiscriminatory basis is essential in democracy. ,e want to see all information all users, be treated equally. Net neutrality does that. We are very concerned about the action the fcc has taken. We think it was an action that was not good for the American People. Kevin i have a twopart question. To roll backg those regulations, but congressman, what can your party do in order to reverse course on that . The second, you just got off the floor and you had a 71 minute backandforth with mr. Mccarthy. Can you tell us what is going to come of that . I know a lot of folks are wondering about that back and forth as well. Theyer we think republican majority has not done the work of the American People. They have not given just ramming it through. No hearing. No witnesses. Very little time to consider one of the most complex pieces of legislation that they Congress Passes. We think it is a very negative impact on the American People. We are pleased that the American People get it. They know what this bill does. It gives money to the rich and does not do much for the working class. That is not a good thing, when you have speaker ryan saying that is the objective of this bill. It is not. It does not do that. I think that is why senator rubio who has seen this conference report as we hear it explained advantage in the wealthiest in america even more than the house or senate bill dead, is having resin then the house and senate bill did, is having reservations. The last days of the session, without having accomplished so much of what we need to do. I listed a litany of 10 to 12 things that are must do pieces of legislation that we have not passed. Fcc, sticking with the and the republican majority, and being in the minority party, how do you push back . Exampleou address, for at the fcc, how do you reverse that coors given you dont have a majority . Rep. Hoyer obviously, weve push back very hard. We explained to the American People who i think overwhelmingly to leave that Net Neutrality is the best policy for them, their families, and the communities, and their country, from that standpoint, the people are with us. What the frankly, American People can do and what we need to do is take back the majority in 2018 so we can address that policy with a majority in the congress and in the senate. You are right. Without majority, without the ability to put legislation on the floor, it is very difficult to change this policy. Shery we are hearing from the attorney general eric schneider, saying he will sue to stop in the illegal rollback of Net Neutrality. We had already heard from senator Edward Markey from massachusetts saying he plans to fire against the order as a legal challenge. How united are the democrats right now in trying to stop the rolling back of Net Neutrality rules . Rep. Hoyer i think the democrats are very united for we have voted on this before. The Democratic Party has taken a position that in a democracy like ours, we need to have net access,ty comey equal equal treatment for those who use the internet. We think that is what a democracy should expect. And frankly, demand. So that i think the court route is perhaps the only rich we have available to us now until such time as we take back the majority. Which i think is more likely every day. Corey the argument on the other side was that the federal trade commission should be looking at this, not the fcc and that this went from a protection to a regulation. But it was unnecessarily bureaucratic. I wonder what your take is on that argument. Rep. Hoyer i think i dont think that was that may have been the argument used. The underlying reason was they didnt like the fact that there could not be treatment from volume users or special users. I know i have a lot of friends in the network providers, the isps, i understand their argument. Open access,at equal treatment is the best policy in a democracy. Whether it is the fcc or ftc, it is not really the issue. The issue is, do you agree with the policy or dont you agree with the policy . That is an argument i dont think is the honest argument as to why this was taken. Kevin the fcc has announced they are rolling back the obama era Net Neutrality regulations. The attorney general saying he will lead a lawsuit going against this. We are joined by the democrat with by democrat steny hoyer. Let me follow up to the multistate lawsuit that could make its way through. We have seen this on the past and the strategy on immigration, for example, where state leaders were taking going against the administration. How significant of a strategy is this, in order to combat some of these regulations . Does it really have a chance of working . Rep. Hoyer i think it really has a chance of working. Pleadingsn expert on to a case that has been made as ought to becc reversed or however, it is the avenue that is available to we are a nation of laws. The courts can oversee this and say, whether it was done correctly from procedural standpoints, and then if so, was law andn the appropriate to take this action . The best way, they best way would be legislatively. This is a way. It is a way that is available. A beasley, a lot of attorneys generals the United States believe this is harmful to their publics. To their citizens in their states. So they are filing action on their behalf to ensure equal treatment and equal access to the internet. Shery you are very busy right now dealing with the spending deal. House republicans pushing a military spending bill paired with a measure to keep the rest of the government open. Will the democrats try to block the ocr and if so, are we headed for a Government Shutdown . We are not i hope for a Government Shutdown for we have never been for a Government Shutdown. The republicans, as i said on the floor, have a number have on a number of it occasions have shut down the government. We need to do our work. This cr we expect to come on tuesday, if it doesnt pass, will not shut down the government we have another 72 hours before after that. We have until next friday until the government shuts down. To reach bipartisan agreement on Critical Issues that must be done. Chip is certainly high on that list list. Flood insurance for people damaged by storms is high on that list. Fixing the National Security apparatus for protecting the American People from terrorists is high on that list. A program for students, there are a number of items i could name five or six others that are high on the list of the things we must get done. Kicking, frankly, just the can down the road, which we voted for 90 days ago, unfortunately in that 90 days, none of those have been accomplished. Enough is enough of wasting time. Lets do the work of the American People. Maryland,o

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