For the first time in ten years. It begins with tax day on capitol hill after an unexpected delay yesterday, House Republicans set to officially roll out their tax reform plan this morning plus, dead serious about russia facebooks ceo, Mark Zuckerberg, promising increased efforts to police content on the social media platform and trouble for tesla, the automaker missing a model 3 production goal, reporting its largest ever quarterly loss. Right now, House Republicans and ways and Means Committee chairman kevin brady meeting on capitol hill as they get ready to reveal their tax plan. It calls for a corporate rate cut to 20. The repatriation would be 5 cash, 12 other assets, 30 of passthrough income subject to a lower rate there would be four tax brackets for individuals, the top rate remaining at 39. 6 and a phaseout of the estate tax. The journal saying that corporate will be permanent, with no phaseout although this has literally changed four or five times in the past day or two. I think its going to change the again. I think this is a very fluid situation. I dont think these numbers are necessarily going to be what the numbers will be. Those of us who watched lester holts brilliant interview with tim cook knows that were not competitive. And i know that there are i think something will be done that will make us more competitive. And something that will be done to give the middle class a tax cut. I really believe it. You do believe that i do believe that brady says theres a good chance its going to be rewritten again over the weekend, ahead of the markup, next week, of course, we know the president is going to asia, so congress is going to have this to work with on their own. You sound more optimistic, though, than you did earlier in the week i just think that at least were getting some Details Details make me feel for the but i still dont know how its going to be paid for and im waiting for that i think the level of detail, though, will actually bring out the lobbyists, which we havent really they havent even begun to fight yet and once they know where we stand on interest deductibility, where we stand on capex, where we stand, frankly, on the territorial system that may be implemented, but is going to have differences in terms of how it treats Different Industries for example, pharmaceuticals versus industry companies. And that is a real possibility im telling you, based on at least the conversations ive had, the fighting has only just begun. And so there are carpenters . Im saying that, you know, u. S. Multinationals, its not apparently just were going to a territorial system, there are different ways to treat different businesses theres going to be a lot of lobbying within that but you do believe something small will get done . Are you with me on that . The people i speak to come back to the idea that eventually this effort will fail and well end up with a tax cut and some sort of repatriation theyve been saying the same thing since the spring thats right. Im completely onboard with what youre saying. And there is a great deal of optimism, i think, in the Republican Party that they can get this thing through and done. But i continue to hear differently from they will fail, well get something small. Okay. So it willjust be a Corporate Tax rate reduction and a repatriation deal in the spring. Bin go thats where i am. I think it will be well received by the market. So what happens with so basically, personal isnt touched. State and local deductions they wont get that done. They cant get it done theres just too many that are fighting its the wrath of god to go after not to mention the passthrough taxuation and the loopholes that will conceivably open up. Now theyre talking about rules about doctors and lawyers and dentists how many rules its covered. I mean, really, people who do invisalign, invisalign, are invisalign people covered . This is crazy. Its a massive loophole and one thing li will also say its going to take a while to read the fine print on this thing. Dont expect on day one that we all have the knowledge of what really is in this bill its going to take a day or two to really understand it. But thats why well have something that will make our businesses more competitive and well have some sort of repatriati repatriation and im predicting that there wont be anything else but i think our president will say its massive and will get a lot of credit for it well, you know whos going to get briefed on this before you or me is our own ylan mui whos outside the gop Conference Meeting room on capitol hill this morning well be relying on her for details, somewhere we think in the 10 00 a. M. Hour. Ylan, good morning good morning to you guys. So House Republican lawmakers are just walking into their weekly Conference Meeting in the ways and Means Committee room, which is behind me and as you said, the details of this bill have been in flux over the past 24 to 48 hours. Axios and the wall street journal reporting that the corporate rate cut will be permanent. It will go to 20 and it will stay there but that seems to be very different from what house ways and Means Committee chairman kevin brady had indicated to reporters as late as last night, saying that the rate cut would be temporary and expire within the next ten years heres what we think we know about whats in the rest of the bill so far. The 12 rate for repatriation would be for cash assets, and there would be a different 5 repatriation rate for other assets thats according to nbc news there would also a new 15 minimum taxcompanies foreign earnings on the individual side, the top income rate would stay at 39. 6 . But again, exactly what income level is associated with that, still was up for negotiation as of late last night the estate tax would be graduately phased out. And it is still unclear, though, what type of compromise they reached over the state and local Tax Deduction to win over those republican members who come from hightax states, such as new york and new jersey. Now, the text of this bill will be made public at 11 15 a. M. So after this Conference Meeting is over, thats when the bill will be made public. Ways and Means Committee members, as well as House Speaker paul ryan and other members of gop leadership will then head over to the white house to deliver their plan to the president. Well keep you posted on all of it, guys back over to you really quick, ylan, a lot of reports indicating 401 k s remain uh untouched. Is that what youve heard . Reporter well, what weve heard is that they are no longer looking at lowering the limits of pretax contributions to 2,400 it will be higher than that. Where, exactly, they settle, still unclear. Ylan, well be talking with you a lot this morning thank you so much for setting us up ylan mui in washington get to some Corporate News weve got to touch on facebook, posting better than expected rau results last night ad revenue up 49 the company says it plans to boost spending to police content in the wake of russians using the social network in the attempt to influence the election on last nights Earnings Call, Mark Zuckerberg said he is dead serious about this ive directed our teams to invest so much in security on top of the other investments were making that it will significantly impact our profitability going forward. And i wanted our investors to hear that directly from me i believe this will make our Society Stronger and in doing so will be good for all of us over the longterm. But i want to be clear about what our priority is protecting our community is more important than maximizing our profits. Doubling their security staff to 20,000. Some people wondering if hes so dead serious about it, why didnt he show up to capitol hill i have to tell you, i dont know the answer to that, but i thought this was a masterful conference why . Because hes basically heading off any possibility that therell be a fine, a 1 billion fine, Justice Department investigation. Its a brilliant narrative because what most people had been afraid of was that he was going to say he was going to boost security, but it would have no exact on earnings. Which would therefore make it absolutely chimeraical, it would make it just a show. But if you remember, this quarter last year, they said that the revenues were going to be impacted by an ad load thats going to go down this time they talk about the bottom line being impacted by this i have to tell you, this is the call that you wanted if someones in the crosshairs of washington theyve being talking down numbers for a while. Thats what they do every quarter, they talk down their numbers a little bit as somebody said to me in a previous quarter, its almost like the business is so profitab profitable, they cant control it it is the stocks at 184 and then basically zuckerberg cuts numbers he cuts numbers upfront the stock immediately goes down to 179 to 180. Can i say what they if you actually Pay Attention to what theyre doing, theres a lot o people who feel that they dont have its mature, that its over they are doing personalized tv networks there are going to be 2 billion tv networks that theyll be able to advertise and ultimately, the Artificial Intelligence will solve what the ads come from. If i were a Network Executive right now, i would say, oh, unbelievable you create a blog of 500 men who are the age of 22, okay . About where youre going to go to work. And i would you know, every company that wants to get employed this will happen every company that wants to get employed, employees. You know, they will all advertise now. Its so targeted, its incredible this is brilliant, this is the way tv was supposed to be. I watch a lot of ads i dont want care about. The oil of olay. Do you use oil of olay no. But that what would virginia wolf do . Blog that my wife reads, they care estee lauder and apparently some other bad nonstate actors are state actors, too. And the targets is thats the draw the selfie generation you know theyre like doubling their sales in china estee lauder were back to estee lauder. Lets get back to facebook, though 49 topline growth the numbers are amazing and the bottom line on onex, im saying, is a sandbag but the costs are going up in a significant way. You dont believe it you dont care they saidthe ad load was going to go down and the ad load went up huge these guys are the ultimately underpromisers and the ultimate overdelivers the stock gets hit and then the next thing, you look at it, the target prices have to be raised and its at 200. And talking about the importance of in video and live video. Sheryl sandberg talks about the small and mediumsized businesses lined up against video. And im sitting here thinking, okay, i am going to advertise everybody who is in this zip code and theyre going to get it to me and im going to kill it and thats how every small to mediumsized businesses read this you want to call Sheryl Sandberg right now. Do you know that they probably have no Sales Department they just have someone answering the phone. Yes, yes, ill place that ad, yes, ill place that ad, i mean niet, ill place that ad theyve got to get some russian speakers absolutely. Its a global business. Theres no doubt about that. What else those are my words when we come back, well get to alibaba and their earnings beat well get to tesla, wider than expected loss, but elon musk is expressing some optimism stocks down in the premarket well get to ralph lauren, up 8 blue apron,ium, equ yum, qualcoo more theres the premarket. Were back after a break rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Alibabas up in the premarket. The companys Quarterly ResultsBeat Estimates monthly active users up 38 to 549 million. The stock is going to open above 191, david yeah, will be, the revenue number itself was a very strong number were talking 61 year over year cloud computing, theyre 99 growth their core commerce revenues up 63 year over year digital media. I mean, across the board, the one area of some concern this morning in talking to a couple of investors were margins, which was a bit weaker than some had anticipated. They did do a brick and mortar acquisition. There you can take a look at those core commerce margins, on the call, as well. Maggie woo, the cfo said, regarding your question on the longer term margin level, i think when we set our business goal, were focusing on value provisions, so were focusing on the revolutionary reform of the whole supply chain, digitize the offline business, and help the experience for merchants and consumers. So whether its light, higher margin or lower margin, as long as we can provide value. Im not sure that provides a lot of value but that was the one concern that stock up almost 3 this morning on those very strong topline growth numbers. Eat company that just has too much business. I mean, the amount of business they have. And this cloud plus 99, although you really didnt get a sense of how big that is, but that does tell you, what is going on at alphabet what is going on with amazon, right . These web Services Businesses, whats going within microsoft, as the web Service Business if you ask me what the best theme for earnings season, and this cinches it. Its web Services Business going to the cloud you either go to the cloud or you die. Its a really, really powerful secular theme. And who are the losers as a result of that who are the losers . You know, it would be on premise, but on premise, oracle is making a shift. I know. On premise, ibm is making a shift. Hp . Do i believe it hp . Loser loser. Good point dell, we dont talk about it, because its a private company but vmware is the biggest onborder they onboard to everybody. Theyre switzerland. And people thought that amazon was going to try to wipe them out. Just the opposite. But this secular theme means that you can buy these stocks even up here, because business theres enough for everybody. You look at walmart. Walmart is cloud the cloud. And thats big business. Alibaba is going to have its famous singles day coming up very soon. 11 11. And now you think im obviously a broken record. Who is going to kill it on singles day . Mentioned in the Conference Call, estee lauder oh. People give moisturizer and cosmetics. Why . Because the apple x is a story to end all stories by the way, i had allergen last night. Lest stop calling with restasis, the drug thats going to go off patent botox is the only solution to the apple x. There are some people who dont care there are some that arent vain and just dont care. Were not going to undergo surgery so we look better in our selfies. There are some people who are not vain whos that everybodys just going to get botox injections every day youre so vain, i bet you think this segment is about you. 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[vo] progress is an unstoppable force. The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. Youre so vain you probably think this song is about you youre so vain warren beatty, right . It was thats mick jagger its beatty its warren beatty. Okay, its warren beatty. He is really vain he he had reason to be yeah, why not i mean he was man lets just say, lets move to the segment. Lets move on some people said they would like to come back with hands. That was an old line anyway, lets talk about newell. Newell in the mad dash Newell Brands okay lacking good. Worst in show for the quarter. Second guy down in a couple of weeks. David, this was get your sharpie out. These guys have been crushed and theyve been crushed by the channel, where they sell stuff theyve been crushed by its a jobelike story. You know, plastics, back to school, they said, was bad there really wasnt anything that was so the company, jim, ended the quarter with inventory up 18 year over year thats a suboptimal situation. Which obviously means theyre probably going to have to cut price and doesnt look good for gross margins. What what explains this these are the two that have been obliterated this call this quarter. Under armour and newell. Under armour is firing people and kevin plank has assured me, no more. No more focus away from the group. Mike polka was a very good executive, is going to have to trying to figure out how to get newell back on track david was the rubbermade acquisition just a disaster . Martin franklin yeah, thats what i meant lets just do this. Lets say it right now dont buy from Martin Franklin yeah. And