Mcconnell says that incumbent senator Luther Strange will retain the seat until january, allowing the republicans to maintain a majority. Cal chancellor on Angela Merkel and Emmanuel Macron held a joint News Conference on immigration. We are not quite in agreement on solidarity. Work,we must continue our because we cannot have solidarity in europe on certain matters and not on others. Mark germany has taken in the largest number of refugees. Global news 24 hours a day, the by more than 2700 700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Julia live from bloomberg World Headquarters in new york, in julia chatter i am julia chatterley. Scarlet i am scarlet fu. Joe and im joe weisenthal. The question is whatd you miss . Senator bob corker makes a 180 and says that he is a yes for the tax bill after initially opposing it. As a cryptocurrency take steps towards going mainstream, concerns over an initial offering grow. Meanwhile, another hedge fund victim. A 6 billion fund shut down as another struggles to reboot. Julia whatd you miss . The Republican Caucus singing a different tune. Bob corker, one of the last holdouts and the only republican to vote no last time is knowing yes on the bill. The legislation now looks like the senate. Through also joining corker, marco rubio who changed his vote after the Child Tax Credit was expanded. Yesterday we were saying marco , whatever he says, would vote yes. Bob corker, we expected to be an no. Today a very different picture. Was a bigthis surprise. Corker has been the lonely deficit hawk among the senate republicans. He is the only one who said he would not abide by the new deficit that is expected to trillion, perhaps more if these cuts are extended as Party Leaders say. This is a turnaround, but this premuch secures the passage in the senate. We have some undecided members. But its very hard to see how this bill fails. Joe did senator corker give any explanation for why a bill that does not address any of his concerns is certainly worth voting yes on . A statement put out saying that after speaking with businesses and farmers and various constituents, he has decided to vote yes on this bill. He called it a once in a Generation Opportunity to remake the United States tax code. To seize the potential to add about 500 billion dollars to the deficit, but he says his hope is between the tax cuts and regulatory changes, you know in other words the deregulation the Trump Administration is anaged he sees opportunity to improve the wellbeing of americans and he did not want to pass that up. Deficit hawks of really died in the senate. Lets talk about marco rubio was well because he got the ansion of the tax child the Child Tax Credit. What will they do to pay for it . Reporter we dont know. The bill is expected to come out at 5 30. There are committees in the house in the senate but still have not been able to see this. I think we can expect surprises, perhaps some gimmicks as well on the pay for side in the tax provisions. On this idea of gimmicks. Does that mean things might expire sooner question mark what does that mean . Reporter it means they can play around with the dates, the sunsets of these provisions. Right now in the senate version, aty were expect it to expire the end of 2025. They can perhaps change that to raise revenue. There are all sorts of things they can do to make to frontload the tax cuts and say, well, these things are scheduled to expire down the road, but they probably wont because we do not want them to an future congresses will extend them. That is the main tool they have. Scarlet i want to ask about Susan Collins. She was extracting promises, that now that rubio and corker are yeses, has she lost all her leverage . Put it thist me way. It is difficult to see republican lawmakers bending over backwards to accommodate her at this point. She will have to make a decision whether to support this. I think, yes, she has lost some leverage here, with the fact that corker jumping on board with this bill. But i spoke to her office a couple days ago and she remains optimistic, in their view that congress will pass these bills. She seems to want to get to yes, at least on the tax bill. Couple otherare a wildcards. There is john mccain, of course, cochran, out for health reasons. Are we expecting that those tend to men back in d. C. For this vote . Republican leaders sound confident they will be around. We do not know the status of senator mccain as to when he will return. His office says that he is receiving treatment for expected side effects as he battles brain cancer. We do not quite know the answer. Senator cochran more expected to be around. People seem less worried about him at this point in terms of being around for a vote next week. Joe going back to corker real quickly, obviously, as you said in his statement, he went around and talk to people and that all laid his deficit concerns. The single interpretation for why someone leaving congress would vote yes is they want to remain into Good Standing of conservatives, lobbyists . Could that be a factor, not just for corker, but others who may be expected to suffer a wipeout in november . Reporter could it be a factor they want to stay in Good Standing with the conservative base and conservative donors . Absolutely. That is a huge driving force. They have spent years pulling up to this moment. They have created enthusiasm among their base i should say among the donor base more than anything else, and the business community. Not necessarily their voter base. But its a powerful thing and very hard for any republican to oppose. His bill is very unpopular this would threaten their reelection chances in 2018. Headline,nother senator collins apparently waiting to see the tax bill text. Julia underscoring that others are voting for this without having actually seen reporter right. Julia just making that point. A significant proportion of voters believe their taxes will be higher, not lower, as a result of this. When i look at bob corker, its all about corporations, galvanizing better competition for corporate spirit is not for benefits for individuals. Will this be good for the midterms . The real youre right power behind this bill is on the corporate side. , theeason they made this individual tax cuts temporary, the Corporate Tax cuts permanent, there is expected to for0 and a top rate cut these entities, so, yes, the real motivator is corporations and businesses need a tax cut in order to be freer to invest and hire and raise wages. It remains to be seen if that will happen or if they will use the gains to reward their shareholders and buyback dividends. About therrect also polling. A two to one margin, americans believe that this bill is likelier to raise their taxes then cut their taxes. Republicans have not done a good bill to theng this public and democrats have done a very good job sowing doubt in the minds of americans. This will mostly help corporations and the wealthy. Scarlet that is an argument that a lot of people in high state and local tax states certainly believe. Tweeting doos not forget senator mike lee, of course, because we have not heard from him. Scarlet right julia i like the idea being backed up on twitter. Youlet coming up, we bring thoughts on the disney and fox deal coming up. This is bloomberg. Scarlet whatd you miss . Disneys 52 billion deal to i a chunk of fox will have to be approved by regulations. This would give disney more than a third of the market. Gamco investors holds 350 million fox shares. Bloombergs tom keene caught up with pimcos ceo. He is taking his holdings and rgest holder la in disney. So basically he understands globalization, he understands scale and he understands the direct line to the consumer and has these challenges, so i think unexpected was different part a, he did not go out and find a premium for his voting stock, but he is paying a premium 8 billion, maybe a lot less, 6. 5 billion depending on the tax structure he is going to spin new fox and merge with disney and becomes a large shareholder. Tom with this is bob iger. My history of bob iger, he ended food abc, went up the chain. If disney does this, it will fail. No. What is disney going to do, for example, with the simpsons . What is the pixie dust that bob iger has with content . Pays about company 4 billion of cap x, ok . They are taking on 5. 5 billion, the way i look at it and with growth, they are talking 6 billion, but the capex is 100 billion yet, they go global, they go direct to consumer with sports and entertainment. That got content. What would be able to have all of the big six . What happens next . And do you assume in 2018 coming years, further consolidation into the business, how do people you know respond to this . Ets talk about cbs what do they do when they see all of these other players in action . Challenge, of the tom, is you have out the bet, google, these behemoths. Forget about alibaba and tencent. You are talking about just u. S. These Companies Like fox, 70 billion. Share is less than 6. 5 billion. That is the challenge. Meanwhile, the tax cut helps. The Net Neutrality rules are in play. There is regulation coming down at the same time you ask what is going on with regulation . And hissay with les team on the stand live entertainment, live news, how do they play that . Mentioned sports twice. Are you suggesting again the pixie dust, to use the phrase from mr. Disney is there for espn and they salvaged traditional tv . Or are they all saying, no, its a whole new world after all . Theres another dynamic in that is not only viewers, targeted media medicine, targeted advertising . How do you do that . Digital is 40 of the advertising. That is where the challenge is. Tom one digital menu like right now. In digital. Africane own a south company that owns tencent i like to stay domestic. Jeff bezos is changing the World Distribution and price efficiency, so theres a lot of companies we have in that category. you mentioned mr. Bezos. He is not in graham, dodd and coddle. How do you own amazon . Reverse that. I will go shopping now we do price comparisons. That is terrific. Its helping the American Consumer become more efficient. There are going to be bottlenecks. The company is going to get too big. Will run into problems of scale and distortion. Is innovation. Creative destruction. I call it creative innovation. We see Creative Destruction of banking . Banking we come out of the crisis, 10 years on, can you own the big banks . Can you own the regional banks . Are you owning a bank in sioux falls . Mario of course. The banks have less regulation of a certain size. You read jamie dimons report. Brilliant analysis. Tom, they hadide, an electric fence around them for about 10 years. That is changing. They are in fundamentally great shape. For the next year or two, they will be in great shape. Less regulation, lower taxes, flat yield curve. Although it will rise for other reasons. Scarlet and that was tom keene ceo marioith gamcos covelli. One of the top stocks in the s p lth care sector today is bergen. Abigail doolittle, what is going on . Amir source bergen is a large cap wholesaler, so they to other sell providers. Walgreens is one of their biggest providers. They are best positioned against amazon, says goldmans. We are all hearing about amazon. There could be an Inflection Point here for numbers. At the pointre that companies are getting an upgrade just because they are not going to be killed by amazon. Abigail thats a pretty interesting point, joe, and i cant fault it. Its amazingly have this mentality out there that amazon is going to take over the world. He is also saying Walgreens Walgreens is their biggest customer. Because of the acquisition of some of those writings hours, that could right aid stores, that could be a future driver. Is tax reform a factor here at all given that it is the headline today . Abigail it is. That could be a tailwind. In fact, lets check the bloomberg take a look at this. Ais is the intraday chart on weekly basis. In blue, we have the low tax companies, in white, the hightechs companies. Companies. Today on these positive headlines, back up almost 1 and we have other companies in this index also higher on all of this. So these High Tax Companies are getting a boost. Interestingly they are at this blended basis where they were before the start of the election. The question now is can they actually, will there be a big bump ahead tohave analysts recommending buy that basket. Julia thank you so much. With a year as president under has President Trumps business arrangements changed since he took office . We have the charts. This is bloomberg. Scarlet i am scarlet fu. Whatd you miss . If you want to know the different ways that the stock market rally has stretched, there are different ways you can do that. You can look to be spread between stocks and dividend yields and bond yields. The u. S. Is the white line at the bottom, and what it shows is the s p 500 dividend yields are below the yield on treasuries. That is the First Time Since going all the way back to 2011. Japan is the yellow line and europe is the blue line. Stocks continue to yield well of above government bonds. Making matters worse for increment investors is the u. S. Stock valuations may be looking more frothy and Dividend Growth could slow down as well. Joe very cool chart. Speaking of that tax bill we have talked a while can they turn it around for republicans . Trump may need it. We have been tracking the average of all of the polls. The blue line is his disapproval rating, the white line is his approval rating, the bar chart low that is the spread. He is down to 20. 8. The last day is maybe one day worse. He is at the worst point of his entire presidency right now in terms of his net disapproval. It is still a while until the next election, but thinking about the hope that the tax bill will get some momentum and turn it around, bottom line is, he needs it. All of the discussion has been about tax reform. The polls suggesting that tax reform is deeply unpopular. So, for my chart now, still in the United States, if you had to guess about the equity in peoples homes prior to the financial crisis, what kind of recovery have we seen . What would you guess . I would not have guessed what this chart shows. Take a look. What this chart is showing you, as far as homeowners are concerned, we are down to the lower levels of equity returns. We are where we were before the housing crisis began. Have people deleveraging. Its the numerator that brought us up to this level, this according to j. P. Morgan chases head of mortgage strategies joe . Its mortgage strategies. Its incurred to. There are a lot of signs that americans are not overly levered. Its encouraging. Scarlet it took eight long years. [cheers and applause] julia whatd you miss . Of these attacks overall coming within touching distance. The dollar also gaining ground. [bell ringing] julia im julia jeter lee. Scarlet im scarlet fu. Julia im julia chatterley. Joe im joe weisenthal. If youre just tuning in live on twitter, we want to welcome you. Scarlet it looks like the republicans have the votes for is one bill, which driver, but it is also quadruple witching day. We saw some parallel dip gaining in the last 20 minutes of trading joe all of that witching going on. A very good day for investors. Scarlet i like that. All that witching going on. Trading volume was 26 percent 20day average. A lot of activity in equities today. Lets look at individual movers. Cloud computing sales missed analyst estimates. That is a setback in oracles opportunities to turn itself into a giant. Cosco shares up by better than 3 . Signaling customers are at least staying loyal as amazon makes gains on the other retailers costco shares up by better than 3 . Under armour up by 9 . A price target of 17 per share a stock that has taken a huge hit in recent months. H m down 13 , losing more. Round there is a crisis, of course, in brick and mortar stores. But certainly the underdeveloped online businesses of these names might be a reason why investors are comparing the two of them specifically. Joe lets look at the bond yields in the u. S. The 2 and quiet. D of there was the dip on wednesday when we got the fed decision, but rebounding very nicely. No change on the 10year. I want to look at a different spread. This is the 530 spread. We dont talk about this one. A different story, but arguably more intense, continuing to plunge today. To 53 basis points. You can see back in october, it was around 90. The beginning of the year, 100. Quite an interesting move. Keep your eye on that one. We shall do exactly that. The dollar raising on the day, hopes for a tax reform vote by week. D of next also looking at different currency today. Climbing ton india high. Emonth this as Prime MinisterNarendra Modis party expect did to retain power in this is a very important indicator ahead of National Elections at the end of 2019, the importance of Deval Patrick in india very critical. All things dollar in brazil as well. The finance minister expecting rating agencies to wait until february before making any decisions on the countrys Sovereign Rating according to officials. They have a reform bill vote that is being delayed, and india seems,uested that, it from those close to the government. Also want to look at what is going on in peru as well. Joe will be talking about this later in the show. We have seen the assets of the country under pressure and the the president who is a technocrat. This is imperiling chilean assets and peruvian assets. Ont looking at what is going as far as the implied implied,y, one month you can see the chilean peso rallying significantly. Love the peru story. We will be talking about this later on the show. Finally a quick look at the aboutities crude up half a percent. Gold up marginally higher. Copper up i