Administration is pushing for increased exports of natural gas and other Energy Sources as it seeks energy dominance. Secretary perry also praised increased coal exports to boost Energy Production and jobs. He said today he has not yet seen it widely expected study into the reliability of the electric grid. The United States has imposed sanctions on 16 people in organizations linked to iran. The move comes a day after the Trump Administration certified that they are complying with their nuclear deal. The new sanctions are for nonnuclear activity, including support for irans revolutionary guard, and the Ballistic Missile program. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Live from washington dc. Im julia chatterley. Scarlet im scarlet fu. Joe im joe weisenthal. We are 30 minutes from the close of trading in the u. S. Julia u. S. Stocks going lower into the dollar sliding to an 11 month low. Joe the question is, whatd you miss . Scarlet Mitch Mcconnell repealing his repeal dead on arrival. Where does it leave the republican agenda . Barry diller says he is saddened by what has happened in washington, but he is looking for in the u. S. And ibm reports after the bell, can they demonstrate a shift away from the legacy businesses, clout and cybersecurity . Cloud and cybersecurity . Julia looking at where the major averages stand. Abigail is standing by. Abigail exciting stuff. Small moves for the major averages going into the close, but for the nasdaq, moments ago it did put in an alltime high, the First Time Since june 9. It is on pace to finish at a record close. If it happens, the First Time Since june 9 as well. You will guess technology is doing pretty well today, that is the case. Look at the dow down slightly, about 3 10 of 1 . S p 500 recently went higher, also dragged down by financials. Tech and Consumer Discretionary strength is outstanding. And the nasdaq, we did have the tech pullback starting on june 9, one point down 4 . It has been a race. The nasdaq putting in a record high today on page pace to finish at a record close. And helping with that for the nasdaq, we are looking at the stocks amazon, facebook and alphabet. This part of the tech pullback im a but they have rebounded. Netflix come up 14 , best day of the year after the company put up a solid second quarter, especially as it relates to subscribers. They added 5. 1 million subscribers, versus the estimate of 3. 2 3 million. And at the forecast is solid, relative to the subscriber growth and it is coming from international. Those ashares clearly rewarded shares have been clearly rewarded. We will have ibm reporting, along with united airlines. Ibm trading higher. They are looking for adjusted earnings of two dollars and four cents, 19. 5 billion. It represents a 7 and 4 decline yearoveryear if they do hit the estimates. Margins will be front and center. Also for united, continental, down 1. 4 as investors worry about fuel. Going greenally csx and investors want to see if the railroad company, how they will set the tone for other railroads. And how they are doing in the quarter under harrison. We will report on those shortly. Julia thank you. We will dig into the ibm numbers when we get them after the closing bell. Senate majority leader mitch proposals new to simply repeal obamacare seems to be dead in the water. Looking at the fiscal policy agenda, which is now also in jeopardy, with the president Lincoln Health care reform with large tax cuts. We have kevin cirilli. Great to be with you. Welcome to washington. Be deadlan c seems to in the water. Talk to us about plan b. Kevin im not sure that they know. I just spoke with Mitch Mcconnell antidemocrats, nell,or schumer mccon top democrat, senator schumer, and they are feeling out what comes next. Senator rand paul, mike kelly, who came out against this are essentially a mute issue at this point. And republicans are hoping that more moderate them across will be brought to the table. I caught up with one of the moderate democrats who will be involved in the discussions, senator jon tester who is on the banking committee. I spoke with a republican from south dakota, just about jockeying going on. He is a former governor. Take a listen. We will start over. We will be reaching across the aisle to members on the other side. A group of former governors have indicated our interest in finding common ground. Time really is of the essence. Isthe best thing we can do start having committee meetings. Sitting down with the Health Committee and finance committee to work on a program that will help to fix the Health Care Bill credit you go to the floor and debate the issues. That is what it is all about. Kevin senator shelby is an ultraconservative. The bottom line is i spoke with sender joe manchin, a democrat with a tough reelection to fight in West Virginia and he is leading the gubernatorial charge, the 11 lawmakers who are bipartisan come all former governors who are meeting behind closed doors thinking of a nupathe forward. Julia you are speaking of a conservative, one of them senator shelby, what is your sense about how many republicans would back a bipartisan fix. Even if you are talking about a vote of some sort on a repeal with a delay of two years, something has to happen in those two years to support failing markets. Kevin i have to be a bandaid, not a reoperation of the whole entire Health Care Bill. And that is devastating news to the grassroots conservatives that were hearing they were going to get something done. One thing i found interesting from inside the beltway, Vice President mike pence speaking at the retailer organization about tax reform. Tax reform is what they wanted to do. And the main headline of the speech was health care, so they are clearly trying to turn the page to get to a new policy argument. I spoke with a senior a public in aid last night as this was developing who said, you look at health care and divisions on that and you get to revenue neutrality and deficit spending with the debt limit, border adjustment tax, there is so much space between the different factions. Julia the possibility of health to reform looking slim. Kevin slim to none. When they come back from recess, and the uncertainty of that the uncertainty of janet yellen, many people bracing for the uncertainty of washington. The dollar reacted last night on what happened with health care. Julia real concerns. Great to chat with you. Kevin cirilli, chief correspondent in washington. Scarlet we will dig into it , the former. Chan Public Policy and Campaign Advisor to mitt romney joining us from california. Lonnie, quite a mess on republicans hands. From where you sit what is the best Case Scenario for how Health Care Reform can play out versus the most likely scenario . Lonnie the most likely scenario will be some some of paralysis. One of the things you discover through the process is just how Much Division there is between the Republican Party on policy. There were political issues, but what it came down to was policy disagreements on the medicaid program, assistance for low income americans over the extent of military reform. In the short run, i do not see a lot happening. Donald trump acknowledged that today. If there is going to be a new approach, the governors led approach, i think that will be the way forward. There is a piece of legislation in the senate sponsored by Susan Collins of maine and Lindsey Graham of South Carolina and bill cassidy louisiana that says, lets give states the opportunity to do health care the way they want to do it. That could be the compromise. Joe when obama was the president , republicans had no problem passing Obamacare Repeal bills. It was only when the prospect that those could actually be signed into law that they backed and went back, does that suggest a certain level of intellectual dishonesty about some of the criticism we heard from her public and politicians all those years during the Obama Administration . Mr. Chen i think it reflects the fact that this is a Live Fire Exercise and the politics become important. It is one thing to vote for a repeal when you know the repeal is not going anywhere. To your point. But now they know if they vote without a replacement, they are on the hook. They could be on the hook regardless. Politically, donald trump said we will let it fail and we will not own it. It is not the president s decision to make, it is the voters decision. Republicansm sure want to move ahead with other items on the agenda. As they start to tackle tax reform, how compromised are they because of the failure of health care . Mr. Chen i think tax reform can be a slightly separate exercise, in the sense they hoped to do Health Care Reform to give them a lower baseline to meet when they do tax reform. They can move into the process, and by all accounts the white house has been working on it, Senate Republicans have been working on it, as well as house republicans. They will reveal something in early september, mid august. The only challenge, the only questions that remain are typical policy questions as well will you have immediate expansion . Those questions are policy questions that will divide the republican conference and divide the Congressional Republicans from the president. Tax policy is no easier than health care. We will see. Joe one thing that sort of characterizes the attempt to repeal obamacare, is while trump wanted a win it did not seem like he was advocating for any specific policy were making the case that the legislation was going to make peoples lives better. How much do you think that made it difficult, the fact he stayed on the sidelines . Fact theyn broadly, the were not a lot of cheerleaders for the bill, i think it was a huge problem. Could the president have played a bigger role . Absolutely. There is a question about whether the president could have influenced the senate process, because the senators run their own stumps, they have their own set of issues. It is not clear that President Trump could have made a huge difference in that outcome, but he could have been a more prolific tweeter in favor of the bill if it was something he believed needed to get across the finish line. Julia being cautious. Great to get your perspective. Still had, why higher rates for the fed does not automatically mean higher rates for consumers. We will explain. This is bloomberg. Scarlet whatd you miss . It has been nine years since the Global Financial crisis caused rates to plunge to record lows and now that the Federal Reserve is finally raising rates, you might be wondering why you do not see higher yields. Joe here to explain is our personal finance reporter, then. Ben. All those years when the rates were at zero people said you cannot make money saving, people were on fixed incomes not saving, but we are starting to see raised increases but it is not translating to much. How come . Ben the many in the bank money in the bank, the banks just have a lot of money and they do not to compete for your cash. We have seen rates go from about very small,. 1 at some banks, to. 12 . But you can shop around and there are banks that are now paying 1. 3 . So if it is worth moving your money, i am not sure. Joe what about the flipside . They are not translating into more money, but what about payments you make for Something Like auto loans . Ben every market has a different dynamic. Huge come, there is position between auto loan providers. Actually rates have stayed low. They are also being aggressive about basically repossessing the cars if you miss a payment, they get it back. That is how they keep the rates low. Mortgages in the first year after the fed started raising rates those Mortgage Rates actually fell. But they have come back a little bit. Then there are credit cards. Could cards are based on the cardsrate the credit are based on the crime rate, so that is different from the fed rates. They are creeping up a little bit. If you have good credit, you can find lower rates. Julia what about the offset . There are some savers, so what impact do we see feeding into a savings account rates . If we look at the net effects, what is the fed watching in terms of a Financial Condition . They have been talking for a long time about the fact if they raise rates, conditions have not tightened. Talk about the net effect. Basically youates have a situation where we have a glut of savings, so the banks do not have the need to compete for deposits. We have seen certificates of deposit go up a little bit and those are for people who are really shopping around and looking for the best deal. But the actual rates that chaise and bank of america have you are looking at. 03 . Scarlet you set the scene, how is it likely to change with the fed continuing a policy of raising rates at a very gradual pace . Ben i think it is hard to say. I think things could start to change if an American Consumers really start moving money around. If they start to notice how little they are getting from the big banks and they start looking online at basically, you can increase the yield by about 10100 times by moving money to an online account, so it is tempting, but only when the rates get high enough. Joe ok. Ben, thank you. Scarlet time for the Bloomberg Business flash, a look at some of the biggest business stories. Chipotle suffering their worst decline in seven months after a suspected norovirus outbreak at a virginia restaurant. The chain shut it down on monday after a small number of illnesses reported. Just two years ago and e. Coli outbreak at restaurants sent to the shares into a tailspin. And the two biggest ecommerce providers could merge in three weeks. That is according to people familiar with the matter. They say a revised offer was made for 950 million. Snap deal rejected the 850 million initial offer. It would create a stronger homegrown competitor to amazon, which is graining gaining ground in india. And one Company Joining a global list of banks looking to profit from a surge and private wealth. The recruitment push coming after they created a platform to offer Private Banking and other related products to the saudis. They will enlist the private sector as they diverse the economy away from oil. And prosecutors considering dropping an insider probe into carson tended are. That is after he bought shares ahead of the bed of the London Exchange group. The deal was blocked by regulators. The potential agreement to drop the investigation will cost the Company Fines that total more than 12 billion. And that is your business flash update. Julia thank you. Up, emergingming markets. We show you how the developing economies are outperforming and asked the question, what happens when the yields reprice . From washington,this is bloomberg. Scarlet im scarlet fu. Whatd you miss . The outperformance of emerging market stocks to develop world stocks. The white line is the emerging market index divided by the developed world index and when it goes up, as it has been since december, that means emerging markets are outperforming emerging developed markets. At the end, you can see they got another shot in the arm as the 10 year yields faulted. Backe can go all the way to around the last october, right before the u. S. Election, since then there has clearly been an inverse relationship between the treasury yields and ratio. It feels like, when we talk about the rotation of u. S. Stocks and emergingmarket stocks, there is more room to go. Joe i love how the chart is like the jaws that open up and you wonder how wide they will get before the eventual snap. I am looking at another divergence. It comes from this morning, the National Association of Home Builders sentiment report. I love these. The white line is the price of lumber futures and they are high. They have been rallying lately. Generally at their highest since around a year. The blue line is sentiment and it has been climbing, but lately it is sliding. That is the blue line fallen to its lowest level in about six months. And the Home Builders are complaining about the price of lumber, they say it is hurting the margins. We all know about the labor in the industry, something perhaps for the administration to think about as the issue of tariffs continue. Julia we will look at nafta negotiations as well and the canadian question. I want to look at 20142016, the atlanta gdp now and earnings per share. I have a threepart chart. Now at the lowest, gdp 2014. The white line. And for 2017 is pretty much tracking that. And the next chart, earnings per share estimate in 2014. Estimates of 2017 as well, which is the blue. You can see it sitting a little bit lower as of this month. Go to the chart above and what you can see is the normalized version of the s p 500. The white in 2014, the green 2017 outperforming the white, but look ahead to the dips and fallbacks from august and october of 2014. Based on these estimates, gdp is in line, a reason to argue could we see some kind of correction next year . Not the only reason, but one reason to because this. Scarlet the market close is next as julia sets the scene. Nasdaq trading at a record high, up by