Countrys most populous state. The christian democrats beat the. Ocial democrats the social democrats won less than 31 of the vote. It is their worst showing since world war ii, boosting Angela Merkels momentum for septembers national election. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. I am mark crumpton. Julia live from bloombergs world headquarters, i am julie chatterley. Scarlet im scarlet fu. Joe i am joe weisenthal. The question is what did you miss . Companies hit by global cyber attacks. Is this an opportunity to buys security stocks. New french president and Angela Merkel are pledging to Work Together in the face of a troubled eurozone. Onomberg is drilling down what tax reform will look like and how it will impact business. Clerics now lets look for the major averages. Ins, the dow and nasdaq higher. His means more records the s p 500 is narrowly close to a new record close. The nasdaq seems to have it. They can maintain that potential new record close. Gains, explaining some energy, the best sector for the s p 500, up 2 . Oil is up four days in a row. Saudi arabia and russia favor extending oil cuts into the First Quarter of next year. Everybody is looking to see how it will come out at the opec meeting, but this could be an early tell of timing that could go right into next year. , andof the big oil names all of this matters for the trump trade. 80 33, and orange, the s p 500 up of 11 . Technology in blue. The Financial Sector had been a overtookr, but tech last week. The Energy Sector down 2 , liking and dragging on this trump trade, so it will be interesting to see what oil does. There are some bearish calls. Oppenheimer does not see the risk reward as favorable. It will be interesting to see how this plays out. Is 56 18, a part of what has helped u. S. Stock markets the expectation that tax reform will be put in place. S p 500, these are companies taxed at a higher rate. Theyf the election, outperform the s p 500 by 4 to 5 , but then failed. Less hopefule tax reform would be put in place. Recently, those High Tax Companies outperforming again. Happen. X reform will time will tell. Joe thanks. Whatd you miss . Aoomberg television is taking look at the aforementioned tax reform with gas throughout the week and we will analyze what potential changes out of washington could mean for businesses and individuals. Today, the tech sector. Joining us now are two bloomberg reporters. All of the news out of d. C. Has been related to the comey stuff and controversy around that. What has that done to the calendar for getting tax reform . One whichde from health care, the senate is wrapped down upton right now up in right now. The comey firing in the fallout from that has thrown a wrench into everything. It hit as it has sucked up the oxygen on capitol hill and has left room for a few other things. They are trying to inject a little momentum into a project that is fraught politically with all sorts of hurdles, the latest of which is the comey firing. What is the thinking on a onetime tax holiday or tax bill on companies and their overseas cash. That was not included in the onepage outline that was handed out. That is part of the wait and see game that republicans are playing. There are certain things they are open to and discussing, but i dont know if they have any red lines on that ron. What kevin brady are and speaker ryan have talked about is moving forward with a plan that is permanent, revenue neutral, does not add to the deficit, and this is the commitment they have yet to get out of the white house, despite his release of a onepage tax plan last month. Recent interviews make pretty clear that he and the white house have not decided on the most basic questions about tax reform, including whether it is revenue neutral, and if so, how do you pay for it. Scarlet there is also a cascading effect. Offset one, if you save costs on one come you have to worry about expenses on the other. Lets bring it back to the tech sector. The assumption is the more important aspect is not the tax cut, because they have arrange their tax affairs and not enough, it is the ability to repatriate the cash they are currently holding a broad. How do you make sure that if indeed that does happen, they spend it right and dont push that cash out to shareholders, they investor do something to help the u. S. And their businesses internally . The reality is that it is almost impossible to do that. We saw this happen in 2004, the lacks tax holiday. Last tax holiday. That a couple of years later, most of that money or buybacks and dividends returned to shareholders. The wasnt actually anything to say this will go toward spending on manufacturing facilities. There have been some where they tried to give the impression they are investing in manufacturing. Tech companies were close to the previous administration, the Obama Administration. How do they feel about trump these days . No one will say publicly they are not a fan of trumpian they can afford to do so. A lot of these Big Companies have senior members in the Obama Administration within their lobbying organization. It is hard to get this kind of people on board. We have seen pushback on things like immigration, but there is a whichwhich companies, topics, which policies are more important. Apple, immigration maybe not so important. On the flipside, 240 billion outside the u. S. What extent they have to what extent they have to pick and choose their battles. Scarlet one person the does support donald trump is peter see hishere do we influence as a relates to the tech sector . Of the go to people President Trump is looking at. He has a number of people surrounding him that are whispering Different Things in his ear. Gary cohnmnuchin and steer this ship, which is why we see conflict between them and House Republicans on things like the border a just ability tax and whether to allow businesses to deduct net interest on future loans. That is creating a situation where the president is conflicted. Im sure peter thiel will be an issue or figure on one another, but what is lacking is an overarching vision by the white house to set the parameters and steer the house and senate in a particular direction. Hope Republican Leaders this happens, part of the purpose of kicking off the project this week in the midst moment,ange political but they want to keep this alive. Without guidance from the white house, it is unlikely to happen. The direction has to come from the president himself. Scarlet how likely is that . , it is uncertain at the moment. No one really knows. It is hard to predict what is going on in President Trumps mind. People here are not entering to gas. They want to create the conditions for him to think about the issue more, and for him to arrive at some decisions, which have not been done yet, again, key decisions, revenue , reduce the deficit, but he has not decided one way or the other. You have to make decisions to move forward and have a clear, consistent message come and steer the ship in a particular direction in order to get things done capitol hill. Are noters, they accountable to anyone but their constituents, so it is a difficult project in the best of times. These are not the best political times. It is a next her challenge. Julia well said. That was an unfair question for me. Sorry. About love that point this being really come a difficult complicated things, even in easy times. Scarlet the interview trump and Steven Mnuchin did with the tyingmist infrastructure with tax reform. All sorts of things are being thrown into the mix. We . E actually are what democrats need to accomplish moving ford . This is bloomberg. Scarlet whatd you miss . Thecrats keeping up pressure on trump over the firing of james comey. Bloomberg spoke with tom perez, and he began by asking for his take on the uproar over the dismissal. Theywill tell you what have to do if they want to earn the trust and respect of the American People is make sure that they appoint an independent prosecutor to take a look at what happened. Doj,secuted cases that the over a decade of my life, prosecuting cases under republican and democratic administrations. Last weeks tweet is an example of a piece of evidence i would have used in an obstruction of justice case. We need an independent investigator, prosecutor, who can look at the truth. I can handle the truth to the American People can handle the truth. I dont understand why donald trump cant handle the truth. Chancent to give you a to respond to something republicans have been saying for quite some time since the firing which is, democrats had argued that director comey was doing a bad job repeatedly. Inis hypocritical for them this case. I absolutely had issues, serious issues, with what director comey did, but the fact of the matter is that had absolutely nothing to do with his firing. When we heard President Trump say i fired him because he missed treated hillary clinton. That doesnt pass the laugh test. Clear, he was fired because he is the investigator in an investigation that could implicate the president of the United States. That is an affront to our democracy and our independence, and that is the point i want to pick up on. As whomever President Trump dominates, if no democrats support whom ever that nominee is, is this fbi director legitimate . Fbi director to command the respect of the American People. Having democrats to do that would be helpful, but more thertant which you need is appointment of an independent prosecutor, because you know what happens. If you get the best fbi director, but you are reporting up the chain to a department of justice that donald trump seems to have in his back pocket, then the best director in the world doesnt get you anywhere. Any namesere been that have been made public that are on the short list for fbi director, john cornyn for example, that you could get behind. Theenator john cornyn is perfect example of what not to do. He is a partisan republican. He has been defending donald trump come and youre going to put him in charge of the fbi where they will be investigating the interaction between trump and putin . That is beyond the fox guarding the hen house. That is why you need an independent counsel looking at the investigation. There are plenty of people out challenges challenges with the president did last weekend firing james comey you have a tough job as chairman of the d c. You are having to unify this democratic party. How is that going, what are you having to do, and what are some of your objectives now . We are making progress. We starve work to do. We have to get back to basics. When we put our values into action and it lead with our unity and values, we do very well. I will give you an example. The Health Care Efforts of this administration to repeal the Affordable Care act and put 24 million americans in jeopardy and tens of means of americans with preexisting conditions in jeopardy, and seniors who rely on the Affordable Care act for Prescription Drug benefits, our unity has been our greatest strength and we will continue to fight. There is a palpable anger, you know this. You have been all over the country as chairman and as department of labor secretary, i have interviewed activists all of the country during the campaign, there is an anger. How do you as you head into midterm elections cultivate that . Nd channel that 2017,s start with because we have gubernatorial elections in new jersey and in virginia, and i am confident we can pick up the governorship in and retain the governorship in virginia, and what we have to do is make sure we are leading with our values. That is why we are together on health care. When you see what the president tried to do to enact a budget that would have eliminated meals is a morallyat bankrupt budget. People understand that. Come his effort to appeal the aca, it is not tax reform. It is a massive tax cut for wealthy people because the way the aca subsidies were financed was a tax on wealthy people, and what the aca repeal is about is first of all an age tax on people over 50, and secondly, a massive tax cut for wealthy people, so thats why when we are out there fighting and leading with our values come articulating clearly what we stand for as democrats, we are the party that stands for Economic Security for everyone, not just for a few at the top. Perezt that was tom speaking with bloomberg. It tomorrow, you will want to stay tuned because we have an interview with Mitch Mcconnell joining a bloomberg daybreak america 9 00 a. M. Eastern time. Joe i am joe weisenthal. Whatd you miss . News today on indications that some of the major opec players are inclined to continue cuts, though nothing specific. If we look at this chart of technicals, oil breaking through some fibonacci levels, through its 200 day moving average. It is starting to break above those lines in april as it was falling through those things. Right now it looks like things are looking good again, breaking above some levels, so perhaps we will get a situation where the technicals and fundamentals line up, and that is what macro traders love to see when you have that confluence of news and charts. Royal is that a two week high. You mentioned the Drivers Behind that. Forecastommodity price , charting 35 analyst views on oil price and where they see it headed. This is for wti, Pay Attention to the green of a shows the bullish sentiment. It has been climbing. Income ofat the very 71 of analysts are bullish on wti. The bearish sentiment as the red portion of the chart, and that has receded to less than 10 . A week ago, bearish sentiment was 27 , and a month ago at 41 . The neutral trunk as well to where as a 19 , month ago it was 25 , so are a lot of change in sentiment driven by technicals and fundamentals where you have opec , saudi arabia and russia and nonopec users discussing the prospect of extending price cuts. Scarlet good news in the price. Julia i only want to talk about oil. Strategist believes other commodities may drive the rally from here. This is the relationship between the dollar index and exports. The dollar traditionally hasnt happening affect on grain exports, but if you look at what is going on in the 20162017, a strong dollar. Our we need as we head into the season is to have a blowout dry weeks in july and we could see prices come dramatically down, particularly if were at a turning point for the dollar and the dollar comes down to that would be supportive, and if the oil prices here are going to stay around these levels are move higher. A number of things to watch on this one, but the trade angle is also critically important. We have the market close next. Julia the s p and the nasdaq closing at highs. If you are just tuning in, live on twitter, we want to welcome you to our coverage every day from 4 00 until 5 00 eastern. Begin with our market minutes. The s p climbing to a fresh record high. In the absence of any bad news or even mediocre news, stocks are melting up even more. Close over 2400. Julia the rally we are seeing in oil prices as well is pretty critical. Scarlet i am glad you bring that up. At the returns for the s p 500, energy is up there. Materials were even higher. You talk about Commodity Prices and it is translating into gains for the companys that produce those commodities. On the downside, Telecom Stocks are down. Including discretionary which includes beleaguered retailers. Little change on the day. Let us look at individual movers. One is an etf that tracks cybersecurity firms. There is that leg up at the end of the chart. This is a glimpse at how it has done over the last year. The global wave of cyberattacks that began friday and is extending into today, the First Business day of the week, pushing investors to take a fresh look at those companies. If you look at home builders, as a group, they are at their highest level since march 2007. This is a 10 year chart. It has come right back out. That is because Homebuilder Confidence has returned as well. One reason why is because there is shrinking inventory of existing homes. Turning a lot of potential homebuyers to existing stock and increasing confidence. Joe taking a look at government bonds in the u. S. , not a lot of action today. 2. 34e 10 year yields up to percent. I want to look at a longerterm chart of Chinese Government bonds. This is a five year yield. We do not talk about Chinese Government bonds that much what we are starting to more because this is quite a move. A lot of interest in the financial tightening in china and a lot of flattening with the sharp move up in the last six months. We are going to keep an eye on this. As long as this keeps rising, it could put pressure on chinese assets. Commodities and so on. Julia looking at the Foreign Exchange market. I always start with the dollar. I cannot help myself. It is pretty important to justify myself. The data was interesting with the dollar rally losing steam. Last week in at 11 months. The most since august. We will have to see what the real money is doing. What is the real money doing . A quick look at what is happening with the commodity currencies. We have talked already about the russians and the saudis seemingly on port to extend the cuts. This is an interesting one. Dollarhong kong. I saw a headline today saying it is up the most since february 2016 on a daily basis. No improvement. Was sitting at a one year low. How exciting when we get excited about a move that size. Last week we talked about the slow shifting from the offshore market to the onshore market and the impact that will have. That investors are unwinding short positions to invest in stocks. A lot of people were short and t