We have seen the ratio of the dow to the nasdaq. The dow has been gaining disproportionately and add a record, approaching 22,000. Movement has to do with earnings sales and if you look at the tally on the bloomberg, we have 315 of the 500 components have now reported and 70 companies have beat analyst sales estimates. About 5. 5 ing at earningswth and 10 growth, so continuing to see gains that are better than estimated. As for some of the highlights to the upside and downside, we have sprint as one of the best performers after the Telecom Company came out with a surprise profit after subscribers dropped. We got the story in the loss bash in the last hour that softbank might be interested in looking at dish network. That could be a potential murder potential merger target. On the flipside, we have under slashinghat company its forecast for the second half of the year. That was broadly expect it. Also protest also projecting weaker gross margins. Mosaic is forecasting a tighter margin, saying it sees higher ammonia cost. Those shares down as well. And the big report after the bell will be apple. Although most of the focus will be on what happens with the iphone eight, we are seeing some focus on the mix of revenue in the last order between product, services and Software Come of those shares up going into that big report. Julia thank you very much. Look at cmen we group, one of the companies that reported before the bell, shares are rising as they put Second Quarter profit that beat analysts estimates and posted a dailyrease in average volume. But revenue for the quarters was in the lowest estimate. Joining us to discuss the results is the chairman and ceo of cme group. Thank you for joining us. Guest thank you for having me. Scarlet for the quarter that ended, revenue did rise 2 with market data fees and other revenue dropping from a year earlier. Talk about the market data business and give us an idea of whats keeping the business from growing. Guest you have to remember that market a to revenue is something we just started charting forward in the last couple of years. Gave it away to build and attract our business which we have done a good job at. Ourakes cme to disseminate products from around the world and have the increase coming up 20 in europe, 20 in the asian immunities. If we didnt do that, we would not be able to get. 5 or 30 of our revenue coming out of the United States. Thats always going to be a fluctuating number and we are doing Different Things to ulster that, whether it is Historical Data or derived data. Nowas down a little bit and its not a surprise. On the revenue on the top number, you have to realize we had investment revenue in other buckets. We took that out and in the fed account today which is yielding cme and its clients a much higher number. The analyst did not remove that from the other. The other reason is the mix of trading on our energy products. We became a victim of our own success and a lot more trading in energy, but a lot of it was by member trading which they traded at a lower rate. There were a couple of different factors and i think the overall story is a good one. Scarlet lets stick with the market data part of the business. What are you doing to make sure it grows in 2018 . Whetherou cant predict anything is going to grow were not grow in 2018, but we are facilitating several new hires to continue out and sell it. Were taking the inhouse here to make sure people are accurately paying for the data they are receiving and the distribution under derived and historical, this is very valuable data and you just cannot sell it for a price youre not sure what it is worth because our data comes from so many different participants. It is not bilateral data that two people made a trade and said heres the market data. Our data is constructed of millions of participants creating that one particular usee, so people want to that for risk models in different Asset Classes to build their own models. Scarlet when we talk about that market ada business, i think about ice and how they have required many market data assets in the past. Are you looking to make any acquisitions there . Decided to gove that direction. We are a transactionalbased company and have operating margins north of 68 and we are doing quite well in this is this. Those are things we do not discuss. And whatost important i am focused on is the client. I can continue to bring in more that will build our overall business. That is my focus right now. Lets move on to the londonbased derivatives business that closed earlier this year. Plansbout your postbrexit. What are you looking to do . Guest there are a couple of Different Things. When you look at what we were doing in europe, we dont need to be a brick and mortar. We are global in nature and we created this liquidity. One of the reasons we gave create ata away was to book here in chicago. At the big part of what we can do globally. We are going to continue to be part of the European Community and have that european Customer Base trading this evening. Scarlet libor, the benchmark discontinued by the end of 2021. One of your most popular toducts is benchmarked libor. So what does this mean for cme . Guest you have to remember that just because its supposedly going to be discontinued by 2021, it does not prohibit banks committing to libor today to report to stop reporting. Libor could be around after the 2021 day. We are working with the alternative Reference Rate Committee in the United States and we are going to create contracts based off of those reference rates which is based on a repo treasury. We are excited about the opportunities that we dont think it will be jeopardized one bit. Want to get your thoughts on the volcker rule. Bloomberg reporting relators are sitting down to rewrite the volcker rule. From where you sit, whats the single biggest priority in editing this rule . Not repealing it, but in editing the rule . Guest what they should have done from the inning and that is if they are going to have a rule that will restrict banks from shouldtary trading, they make sure the derivatives of that market are allowed to proprietary trade also. Prop are still able to trade in their market on the cash side. Is on the visit futures side. The one concern i have is we need to have liquidity and were going to get into a time of stress. The Energy Markets are fluctuating around. What if we have some serious volatility . We need more and more people to make sure we are providing deep of liquidity and why you would want to pull that out of the equation is a mystery to me. Aboutt we are talking bending the rules. There is the possibility of congress repealing the law. Iu see that cap given dont want to say unproductive, but how challenging it has been for congress to get stuff done . Guest i think unpredictable is the word i would use. Were not quite sure. The Health Care Issue came and went and now the big story of the day is going to be taxes and the big focus has been on regulation. The administration is focused on that, so i believe they will look to get some things done on regulation. Also thegulation is regulation, so we have to take that into consideration. There will be some amendments and they may need to go back to congress on parts of doddfrank. The choice act is always out there to get rid of doddfrank and amend titles to, seven, and eight. So it is very interesting. Im not saying its going to pass, but there are provisions that could go through congress. Julia thank you so much. Lets get a check on the Bloomberg Mark first word news with mark crumpton. s soninlawmp says the Trump Campaign could not have colluded with russia because the team was to dysfunctional and disorganized to coordinate with a foreign government. According to policy. Com, Jerod Kushner made the comment during a closeddoor session with congressional interns. The report said kushner was responding to a question about concert special counsel Robert Muellers investigation. A conservative House Republican is calling on mr. Mueller to resign, citing what he says is a conflict of interest because of firedlose friendship with fbi director james comey. Trent franks said he should step down to maintain the integrity of the investigation into a legend russian ties. President ointed after trump abruptly fired mr. Comey. The united rates says is as deeply concerned with the venezuelan government decision to arrest high profile opponents of president Nicolas Maduro. The state Department Says it is further evidence that maduro is an of dora terrien ruler who is not willing to respect fundamental human rights. One person was taken from their home in gum point and the mayor of caracas was also seized. That came hours after the u. S. Imposed new sanctions on president maduro and his government. The European Union says 23 cities are competing to host the medicine and banking agencies but must movein before the country leaves the European Union in 2019. Paris and frankfurt are among the city among the cities buying among the cities vying for the banking authority. Countries will pick the winners by secret ballot in november. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I mark crumpton. This is bloomberg. Julia republicans are ramping taxes,r push to overhaul but what lessons can they learn from Health Care Failure . From new york, this is bloomberg. Is scarlet Bloomberg Markets. Im julia chatterley. Scarlet im scarlet fu. Julia republicans have to choose between pursuing another health bill or pursuing a tax overhaul because theres not likely enough time to do both. We caught up with republican senator jeff flake you had this to say on health care. What is over is an attempt to do it with just republican votes. I think we reached the limits of what we can do with republican votes on health care right now. The democrats standing pat, it sounds like it is over for now. Joining us from chicago is peter roskam from illinois. He serves as chairman of the house ways and means subcommittee on tax policy. Great to have you on the show. Thank you for joining us. Is health care dead and buried and do we need to put all energy into focusing on tax reform . It is deadnt think and buried. Congress has in the past demonstrated episodic efforts over time to revisit things. Is it on pause for now . Clearly the senate is struggling. Youinteresting thing as reported earlier, there is a lot of attention as it relates to informing the tax code and taxes are easier to deal with than health care. The proof of that is health care in the minds of a lot of people has become an orthodoxy for different political parties. Not necessarily orthodoxy and you can have a lot more opportunity because theres nobody defending the status quo of our tax code right now. You say easier to deal with, so before we get into the nittygritty, what kind of timetable are you working with . Is this going to get done by the end of the year . What kind of internal deadlines do you need to meet . Internal deadlines are one thing, but theres also a lesson to learn from health care. Part of the struggle with health care was chasing deadlines that didnt mean anything. Engineer. Rse if we want this done by the end of the year, and i think we do because we want this in place for the first and Second Quarter to feel the economic boost, what has to happen is after labor day, you need to see the house and Senate Committees the ways and Means Committee, the Senate Finance committee in a drafting stage and ultimately moving toward a markup in the middle part of the fall and dealing with it to get it to the ofsidents desk by the end year. Im not somebody who says it has to be done by the end of 2017, but you have to know where you are going to land otherwise it becomes the fish that will have gotten away. The struggle with health care ironically is to make sure we are successful on the significant tax. Julia there are a lot of questions here about financing tax cuts because we have seen a number of elements like the border adjustable tax, the higher rate tax for the highest earners falling away, and we did hear from the big six suggesting there was a viable alternative in place. And you give us an understanding to what the viable alternative is to financing tax cuts and reform . Setting aside the border adjustment tax, why do we want this to be revenue neutral . The reason is twofold its the only way you get to a permanent tax policy. Most folks look at this and say permanent is better than temporary tax policy. The other thing is we have a 20 trillion debt right now and we dont want to add to it. Coming up with a new trillion dollars is difficult and arduous, but it is there. What i have observed in talking a arechu and sees is that willing to put things on the table as it relates to deductions and so forth so long as they are clear that the rate is going to be lower. This is the work the taxwriting committees have to get involved in and i think the members on those committees are up to the task. Have explained all the problems and the reasons we want to roman it tax cuts and revenue neutral, but you say the means are there to make so. What are they . What is available to raise a trillion dollars over the next 10 years . I dont want to put things on the table and start a bidding process or negotiation in project in public. With the complexity of the tax code, the disposition of people to say we are willing to put various things on the table if you are telling us that our rates get lower and its more protectable over the long run. Thats the job for the taxwriting middies and there are a number of proposals out there. Ofave a constituency reasonable people who say get us permanent, get us lower rates. Nd here is why we wanted we want a simpler system thats going to create more growth. Scarlet i want to get your opinion on something senator jeff lake has written. This was in politico this morning, and essay entitled my party is in denial about donald trump. He says if i 2017 the conservative bargain was to go along for a very bumpy ride because with congressional the gemini and the white house, we had numbers to achieve some longheld policy goals youret based on conversations and observations, do others in your party see it this way . Is senator flake alone in seeing this . Guest the president is a controversial figure. Verymerican public saw a controversial election with controversial people running. They said we wanted somebodys going to flip the game board of american politics and thats what donald trump has done. Hes a controversial figure without question and what we are seeing now is some increasing surefooted miss that hopefully will be coming out of the white house, but are has to be a lot of soulsearching in the united in thesenate right now clear ability with numbers that are there to be able to pass bills that are significant and yet they are struggling and stumbling somewhat right now. That experience puts more pressure and creates more of an expectation that we focus in on Something Like tax reform to lower these rates and make the process for filing taxes a simpler one and ultimately driving toward the growth and increased takehome pay for folks across the country. Thank you so much for joining us. Republican leaders, including Mitch Mcconnell speaking on capitol hill he said he had a good meeting with the treasury secretary. Other leaders talked about their optimism on getting tax reform done. We will bring you other headlines as they cross. From new york, this is bloomberg. Scarlet this is Bloomberg Markets. Im scarlet fu. Julia im julia chatterley. We have the commodities close a look at what wet weather is doing to stocks Commodity Prices and a quick check on what is going on in the oil market. Just tipping down, below 50 a barrel. I think a psychological level of 50, we need more bullish news to rally at this stage. Scarlet there is talk about how the Global Oil Market is rebalancing. We will continue to monitor all of these moves for you. From new york, this is bloomberg. Is this a phone . Or a little internet machine . [ phone ringing ] hi mom. It makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. See how much you can save. Choose by the gig or unlimited. Call or go to xfinitymobile. Com introducing Xfinity Mobile. A new kind of network designed to save you money. Scarlet from bloomberg World Headquarters in midtown manhattan, this is Bloomberg Market. Commodity markets are closing in new york. Soybean andted corn futures are plunging. Lets shift to Oil Prices Oil declining for the first time in six days. Could trading below the 50 level, now off by 2 investors are waiting for tomorrows supply report. Stockpiles probably declined last week. Is waiting for a rebalancing in the Global Oil Market. Gold the dancing as the dollar falls on mix reports on the strength of the u. S. Economy. If you come inside the bloomberg , while july was golds test monthly performance february, it was a currently not enough to keep investors from departing the worlds biggest etf backed metal. 2. 4 billion was pulled from the spider gold shares, the biggest withdrawal since may of 2013. Moving to emerging markets, the Trump Administration sanctioning ennis whelan president Nicolas Maduro wallowin