The potential for continued supply cuts. We will examine all of those questions over the next two hours, but we are 30 minutes into the trading day of the u. S. Abigail small trading moves for the averag major averages. We are looking at the possibility of another record high. Take a look at the dow with a fractional gain. That puts the dow on pace for another record closing high. It is very early in the day, but this will follow two days of records. However, the s p 500 and the nasdaq is still in the red. Yesterday, they follow the diet dow higher. 4 10 of 1 . Down for a third day in a row and it seems investors are selling the news of the iphone x that was well received by analysts with the stock up more than 35 of the year. Some investors to be taking profits. We have facebook lower and nvidia lower. Take a look at Gilead Sciences down 2. 3 as the company has had to sell some debt. At the topake a look sectors, device sector for the s p 500. This is the Energy Sector up, driven by oil. Oil back above the psychologically important level of 50 a barrel. You are the bigger losers in the Energy Sector. We do have some strength here for energy for sure. Now, lets take a look at the fiveday chart of the 10 year yield. The reason we want to take a look at this, the first five days higher for the 10 year yield its july represented since july represented in red. According to Compass Point financial, we could continue to see this selloff in bonds. Lets hop on the bloomberg and take a look at 1290. What we are looking at are the net longs on 10year notes. We see going into august, they are going sharply higher. Lots of longs on treasury. A decade high. Compass Point Financial saying if you take a look at that long move hike to the decade high long decade high for the long that coincided with a low in the 10year note. Something similar here. If we go back down into this sell, if some of the longs their positions, we can see the 10year note continue to climb. In turn, that can help the banks. Something to keep in mind for certain. Mark a little changed for a second day. Auto is among the best performers, up by three quarters of 1 . European car sales growth accelerating in august encouraging purchases. Pgn also with new suvs. It was all about the bank of england today, wasnt it . Yes. Rates stayed unchanged. Qe program untouched. Too defensive, but dig beneath the surface. Majority nowe fully pricing in a rate hike in february earlier today before the announcement. 80 chance last week. 40 . Boe says the markets underpricing. Reduce intolerance for faster inflation. Brexit is still the main challenge for the economic outlook. This is the power index. Biggest increase since april. 2 beginning for the fourth day, highest since july. Sinceuge has risen 4 falling to a sevenmonth low in august. That is the bloomberg pound index. This is the intraday 10 year yield chart. Look at the yield spike higher by six basis points. As high as 1. 22 . Today, rising 45th day, the longest run since july 3. The yield has risen by 20 basis points. Today, rising for the fifth day, the longest run since july 3. The euro has risen by 20 basis points. The postbrexit low, 52 basis points on august will last year. The high, 1. 51 january. 1. 2 is where we are today. 10 years ago today, northern walks requests for emergency funding, spots the first one on the british bank in 150 years. And helped start a crisis that pushed the ftse 350 down almost 80 in the following 18 months. The government of course propping up the banking industry. We have had the emergence of challenger banks for the market value of the gauge that since recovered to 300 billion pounds. The green line, by the way, is the index value the day before the Northern Rock run. 10 years ago to the day. Wow. How times change. Vonnie well, exactly, mark. In some senses. Today, we are asking deal or no deal . This question following president Donald Trumps dinner with the Senate Minority leaders. The president s tweets were not consistent with the agreement which last night, they said. The president telling the press this morning he is fairly close to a deal to protect socalled dreamers. President trump we are working on a plan for daca. People want to see that happen. You have 800,000 young people brought here, no fault of their own, so we are working on a plan. We will see how it works out, but we are going to get massive Border Security as part of that. Vonnie the president going to southwest florida to survey hurricane recovery efforts. Joining us now, the Senior Executive editor of Global Economic sentiment for Bloomberg News. It seems that an agreement is in principle, but are all parties in agreement about what the agreement is . Marty absolutely not, which is typical. Actually, number two senator john cornyn for the republicans told bloomberg that it sounds like what they really have is a deal to make a deal. That were howls from from ss base on his reversal on his position on daca, especially that it is not directly connected to wall funding. As you just heard the president say, massive Border Security is not necessarily mean the wall. Vonnie yes. In the schumer and pelosi statement, they talked about the townsend bell, which is on things like drones, massive cybersecurity efforts, but not necessarily a wall. The president says 92 of people are in agreement on daca and on this, but who does he mean . Mcconnell . Paul ryan . Marty i think there is a strong feeling among the Republican Leadership that they need to do something about the dreamers. They understand that a vast majority of americans want to see something done. As the deal on the debt ceiling with the democrats showed, americans are very supportive of Congress Actually working with the president , especially in a bipartisan way to solve problems. Feelingthere is real among the republicans to get a deal done, but not at no cost. Thing theyto be some get in response to that in order for them to support a deal. Vonnie i want to mention we are watching air force one land at four fort myers, florida at fort myers, florida. Marty, last week, the public spending deal that was the democrats was ridiculed by speaker ryan. We are waiting for him to speak at a press conference today. Marty right. Vonnie how will he address wise what happened address tonewise what happened last night . Marty he was against it before it was tweeted out. It is interesting how he will positioned himself on daca. He made it clear he is interested in solving the issue, but it is a question of how they do it legislatively, whether it is time to National Security funding or some other part, tax reform for instance. We will see him and pelosi later. We make it clear to. W we may get clarity. We make it confusion. Mark can we talk about this dinner. Is this born out of frustration from the president s side with the gop . Or does it signify something a bit bigger . Maybe a slight shift to the center . Marty by all appearances, it does seem like donald trump has figured out that if he is going to get legislative victories, it might be easier to work with democrats than it is within his own party. Health care repeal and replace was a great example where the republicans, would control both the house and senate, could not deliver. Then you got a deal on the debt ceiling and the budget. He has definitely made it clear he will work with whoever will work with him in order to achieve some victories, which he sorely needs. Vonnie i want to mention the chart we were looking at a moment ago was actually air force to, the Vice President two, the Vice President. Both arriving in fort myers. They will receive a briefing on Hurricane Irma relief efforts later on before the 11 00 hour. Marty, i want to ask you about north korea because this is percolating in the background. Markets seem to be discounting this absolutely horrendous rhetoric from north korea wanting to do away with the entire country of japan. Marty yewaah. I think the markets have determined until there is actual bite to this bark, they will not react. Obviously, there are some signs north korea is getting ready to launch a missile. There were those signs two weeks ago, and it never happened. Maybe this will be another opportunity for things to deescalate if there is no launch, but the rhetoric, clearly the markets have determined until there is actually something done, they are not going to react to this. Obviously, you also have donald trump monitoring this situation very closely. He certainly does not want north korea to take any aggressive stance that he is going to have to react to. As we have alluded to, the president goes to florida today, the third time in three weeks. What is the general assessment of the way he has handled the two hurricanes in recent weeks . Marty i think the assessment has been that he has been very president ial and that he has handled it quite well. I know that certainly donald trump things that. Generally, getting good grades. Certainly the response in texas was extra nearly well done. The loss of life was kept at a minimum. That is also true in florida, although the storm certainly was not as disastrous as the predictions had it. He has utterly figured out that the way he handled these storms was going to help define his presidency, and i think he is generally considered to have done a good job. Vonnie market, thank you. Senior executive a editor for Bloomberg News. Lets check in now on the first word news. Emma north korea is ratcheting up tensions after being hit with new u. N. Sanctions. The regime sent to use a Nuclear Weapon against japan, saying the country no longer needs to exist. Japan call that statement extremely provocative. The investigation into russian influence on the u. S. Elections now has a redhot focus on social media. Special counsel Robert Muellers team is looking into how russia used fake information on sites such as facebook and twitter. That is according to people familiar with the matter. Next week, british Prime Minister theresa may text her italy. Attempt to she will argue the u. K. Can still work with the eu after leaving. The eu hasr says legitimate fears over the supervision of financial markets. U. S. Treasury secretary Steve Mnuchin asked to use an air force jet for his honeymoon last month for National Security reasons. The request was later withdrawn, according to abc news. His request is not part of an inquiry by the treasury an department. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Vonnie thank you. Coming up, the pound sterling jumps as the bank of england ramps up the hawkish language, saying there is a chance of a rate increase in months. We will discuss in todays futures in focus. This is bloomberg. Live from london, im mark barton. Vonnie from new york, im vonnie quinn, and this is bloomberg markets. Timeout for futures in focus. Wti in new york planning above 50 a barrel for the First Time Since early august. It boosted the demand forecast among other reasons. Joining us now is bob. Does it stay above 50 a barrel, or is this a brief reprieve for the Oil Companies . Bob that is a pretty tough thing to say with crude oil whether it stays above, but i think it sustains above, which is different. Right now, we are looking at a shortterm target of about 53 on crude oil. The pitcher has completely changed, not just with the hurricanes, but with the iea report, which is one of the most bullish things i have seen in a while. Demand continues to creep up and creep up and creep up. Reduce Refined Products so when the refineries come back online, they will pump will out and not necessarily l out. An unnecessary vonnie do you agree with the conception forecast . We know forecasting is a dangerous game. Bob yes, but i do it all the time, right . I agree with it from a global perspective as well as there is going to be unfortunate demand from the hurricanes as the rebuild continues or rather get started and plays out. The rebuild will not be a onemonth thing. It will be a year before they rebuild to the level they want to. That will cause demand through the winter where we normally see that while in the u. S. I do not think that is in the iea report. That is just global growth. Vonnie i want to ask you about cable and cable futures. How our cme traders taking this mornings boe decision and the idea that maybe there is a hawkish tilt now . Bob certainly looks like they are trying to talk the pound up as opposed to actually move it up. Boe has trouble. I know you guys have spoken quite a bit about it. It is driven by currency, not wage pressures, so they need to get the currency stabilize and running, and they are doing a good job of it right now. You are seeing against the dollar. I think we get to 140 because the market believes the bank of england has to do something. We do not believe the u. S. Federal reserve has to do anything. Finallyfed watch tool has the december probability of a u. S. Rate hike above 50 . As ive been there all week. There allas not been week. The market believes the bank of england does not necessarily believes the u. S. Fed. Vonnie fascinating. Thank you for that insight. Bob thank you. Vonnie that with todays futures in focus. Mark the Bloomberg Business flash from a look at the biggest business stories in the news right now. Inflation in the u. S. May be getting on track to reach the federal reserves goal. Consumer prices rose more than expected, 4 10 of a percent in august. That as a fivemonth streak of a weaker than excited report. New european regulations take effect in january. Deutsche bank and Franklin Templeton sent they are doing the same said they are doing the same. Government is now formally remove moved ahead wita review of 21st century foxs 15. 5 billion takeover of Pay Television company sky. The competition regulators will look at foxs commitment to broadcasting standards. It will also look at whether the deal gives Rupert Murdochs family too much media power. Fox still expects the deal to close my next june. That is your latest Bloomberg Business flash. Still ahead on bloomberg markets, rewriting the telecom playbook. The rise of a chief executive. He shares his plans for online tv service. This is bloomberg. Vonnie turning now to the telecom center. Here in the u. S. , verizon offers paytv service over its fiberoptic lines to 5 million subscribers. The growth has stagnated as competition heats up. Lowell mcadams stroke with jackie simons. They discussed plans for an online tv. This is becoming a crowded field, but it is an important portfolio the overall horizon because of our properties, yahoo and aol properties, so more and more, the internet is video. Everybody knows that. We have these relationships with the nba and nfl as an example. We are doing soccer, etc. You have to be able to deliver those efficiently over the networks. So in overthetop platform is absolutely critical for us. We are evolving that as we evolve our content deals. Whether we go out and do a thats whether we use that as a platform to deliver the content or we go out and offer it as a separate standalone product, we have not really make that decision yet so it will be either a combination of something that we do or a partnership with someone else. We will from that of over the next up over the next six month or so. We will have a better sense in 2018 where you are. Lowell we have the network. We have the platform now. The content deals will decide how far we push that out to the public. You told Bloomberg News back in april that he would take a call from comcast, cbs, and disney. A lot has happened since you won the first. You want over at t. You have various machinations going on involving sprint,mobile, charter, comcast maybe. What is your state of mind on big deals since you made those comments to us in april . Lowell really not any different, jackie. The april comment was there is a whole lot of hype, almost hysteria, on wall street about mergers. Coming out of the 600 option, everybody thought it would be a freeforall and the industry will look different by this time. I said, look, i personally do not see it. I still do not see it. There is another conference across town. A lot of people are disavowing the merger stuff. By the way , anytime one of those leaders of any of those companies you mentioned calls, i am a nice guy. I talked to anybody. That does not mean there will be some deal. I think we all just kind of need to take a bit of a breath. Is goinge 50 company to go out and do something for of the moment based on emotion. It will be based on how well it accelerates your strategy. Right now, we have a pretty good strategy. We know what we are doing. We are not looking for anything major. Right now, we have a pretty good strategy. We know what we are doing. We are not looking for anything major. Vonnie Chuck Schumer speaking right now on the senate floor about last nights dinner with the president. We will bring you the headlines. Live from bloomberg World Headquarters in new york and london, im vonnie quinn. Mark im mark barton. This is bloomberg markets. Lets check in on bloomberg first word news. Emma chandra has more from new york. Emma thank you. The white house and congress may be closing in on a deal for the socalled dreamers. President trump so we met last night with schumer, pelosi, and a whole group, and i think we are fairly close, but we have to get massive Border Security. Emma an agreement would keep immigrants fourth illegally into the u. S. As children from being deported. The president says Republican Leaders are also on board. Meanwhile, President Trump is contradicting some of his fellow republicans when it comes to tax reform. The president says he wants changes to the tax code that benefit the middle class and not the wealthy. One of the key players in the debate, house ways and means chairman disagrees. He says he wants to provide tax cuts to all income groups. The president is about to land in florida, where there are concerns about the safety of floridas 4 million Senior Citizens in the wake of Hurricane Irma. Patients died in a sweltering nursing home near fort lauderdale. Many residents can be without airconditioning for days. A boosted forecast for french Economic Growth next year to 1. 7 . It is giving credit to president emmanuel macron. And is a happy coincidence afternly a few months president macron took office, we are now delivering this economic report because mostly, it is about his reforms, is reform plans, his for program, and also about the impact of the reforms of the previous administration. Emma macron wants to make it easier for companies to fire workers and limit the power of labor unions. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Chandra. This is bloomberg. Vonnie thank you. Well, u. S. Inflation may be getting back on track to reaching the feds target. Core cpi rose month over month and came in at 1. 7 , and a fivemonth streak of weaker than ding aed readings en fivemonth streak of weaker than a second readings. For more, lets bring in dan. Dan, yes, it came in at 1. 7 . Likelyoes it make it more does it give the fed more ability next week to talk about maybe Balance Sheet reduction . Dan they signaled clearly, vonnie, that september is going to be all about this question of Balance Sheet reduction. Interest rates, if we are honest with ourselves, do not really come on the table again until december. I would not quite say wooptie do, but i would not disassociate myself from the sentiment. Vonnie what about the hurricane data coming in . Does this impact the inflation data . Will it impact any decisionmaking by the fed . Dan it may impact some data. You might see it with the jobless claims numbers going forward. I do not think it means anything for the fed because it does not appear to be structural. You go back to Hurricane Katrina in 2005. There was a lot speculation that the fed would pause in what was then its campaign of quarterpoint increases. Did not happen. Mark one of my favorite stories today, fed officials admit they have lost some inflation credibility. I suppose that story could be written about the ecb, the boj, or even the bank of england. They are overshooting. Dan it could. The debate has a little more tension in the u. S. Because it is that much further along the data is that much further along on the Interest Rate path. What is really troubling the fed, and it is troubling some officials more than others, i am not sure it has really shaken the core group of the fed, is that pc, and we will get those numbers later this month, which is the key thing that looks at, has actually retreated from its target as a labor market has tightened. It has not moved toward it. It has moved away from it. That has really sharpened this discussion of, look, do we understand what is going on . I am not sure they are walking away from a wink between inflation and low unemployment. They are asking themselves, do we fully understand the link . In the postrecession environment, is it going to happen at 3. 5, 3, 2. 5 rather than the current rate we are at now . Mark lets talk about the bank of england. We have had many false storms before. That is why mark carney has the stor nickname of unreliable boyfriend. An imminentreempt hike by the bank of england . Dan they talked about coming months. Really what i would have preferred they said was coming month, singular. Typically with central banks, it is the signal that at least is important as the act i would argue because of exactly what you just said with the bank of england. It is the act that is more important than the signal. There is a feeling we have been here before. Vonnie yes. To your point, lets take a look at a chart in our bloomberg chart library, 583, the boes history of ignoring inflation. Is not fair mark carney is about to do the same thing. Is it . Never the same, right . As we learn from right heart and rogoff. Dan they have sent in the last couple of statements they have used the word exceptional. That is fair. We have inflation, which in their words, is supposed to exceed 3 . Ordinarily, it would be fantastic. A central bank with inflation above target. It is seen as being linked to the pounds decline since brexit so it is not really structural, but there is a sense that they are going to do something. They clearly flagged it. The followthrough is important. This unreliable boyfriend label is going to start surfacing again. Mark we spoke yesterday to dottie blanchflower. And is very amusing. Having a rate hike now is like punching someone when they are down because the u. K. Economy has slowed, especially the last couple of quarters and is the weakest g7 economy. Is view is, why raise rates now . Can you sympathize with that view . Dan i can. Look, danny has been inside the room. I havent. The worst thing they can do is back away. They are not really talking about punching anyone. If you look at the statement, it ds clearly test in the taske in the contents of withdrawing stimulus. They can take away the quarterpoint they gave in august in the immediate postbrexit environment. We have removed the emergency. It is no longer an emergency. We will see how things go. That way they can deliver. They can acknowledge that they need to do something with inflation above target. But with growth sort of falling away in the postbrexit environment, that i want to go too far. Vonnie thank you. Dan is our bloomberg Global Economics editor. Watch out for his column later today. Mark coming up, a challenger finding value in retail. Why Fidelity Fund manager joel says the future of Many Companies in the industry is overcast. Vonnie we are waiting remarks from House Minority leader nhtsa closely following the dinner with donald trump at the white house last night. We will bring you any headlines. You will be able to watch Nancy Pelosis remarks at tv on your bloomberg. This is bloomberg. Vonnie you are watching bloomberg markets. President donald trump arriving in fort myers, florida. He will be surveying hurricane recovery efforts. The first lady arrived earlier, greeting the president ial visitors. Mike pence, governor rick scott of florida, and also senator receiving awill be briefing from the coast guard, fema, and other officials. That was scheduled to take place in about 15 minutes time. We will keep you posted on all the details. Once again , air force down, wheels down at ft. Myers. Mark many managers and investors of rigging the alarm on market valuations is getting louder. Bloomberg news a letter Erik Schatzker sitting down with an author of the book big money, think small. Here is what he said about finding the challenge in todays market. You always have to have to get a bargain from you have to think differently tha the n the market. It is a very picked over market. My frustration is retail. Because of companies amazon, but some of them will adopt and become retailers. Sorting out the dead from the living is tough work. It takes different paths than expected. Erik have you figured it out . Joel no. Only if jeff bezos will Conference Call me in and tell me who is going to die. [laughter] his i am not sure he knows ideas about who he wants to kill. Joel yes. Erik have you found any companies that you think will survive and thrive in this retail transformation underway thanks to amazon . Joel it is a moving target. Autoparts retailers were well protected. Sameday delivery comes with whole foods could also be used in autoparts. That protected autoparts retailers. Erik autoparts is something you thought about. What else have you gone through and either said, maybe it has promise, or decided it has no future whatsoever . Joel changing discounters like t. J. Maxx and those stores are probably better protected, but bezoshard to tell because says your margin is my opportunity. Es thatthe business look like a businesses to me are on his target list. Erik so they may be some survivors, but at the moment, it is impossible to tell. Joel it is hard to tell. Erik how do you participate in Transformative Industries or Game Changing technologies like what amazon is doing with ecommerce when so many of those thats to the degree they go public anymore are not lowpriced . Joel they are not lowpriced or even publicly traded. Being a small cap manager, a number of Public Companies dropped in half. I was at the meeting for america online, which was a big thing in the 1990s. I met michael dell on the ipo. Those properties are not coming public anymore. They are not small cap anymore , which is a great frustration for me. Erik so can you participate in secondary or tertiary ways . Joel that is great frustration. It has become so much more of a winner take all monopolistic, oligopolistic market in the u. S. Erik that is a feature of todays market. That is something you have not seen in the 28 years since you started doing this in 1989 . Joel it is the future of americas economy increasingly over the last couple decades. It has become more oligopolistic, more winner take all. Erik in the stock market, as much as it is in society. Joel yeah. Amazon prospers. How do we play ecommerce in small caps . There is way fair, but there is also lots of carnage. There is lots of retailers that do not make it. In the russell 2000, which is my benchmark, there are more losers and winners than winners. A lot are private companies. Wayfarers are the same bet as amazon. Erik is anything going to change that winner take all situation you observe and we are living in . Joel not that i know of. I think it is part of why politics is so divisive. Erik you are not buying retail. Joel i am. Erik you are . Joel i hop hold retail but with not great confidence. Erik that is tougher, isnt it . Joel yes. Yes. The problem with Value Investing is you are saying that the peopleis less stark than think, where as it is great to be a growth investor and see the future is even brighter than you think. The future is not only going to be good, it is going to be amazing. I love those kinds of stocks, but when i got are overcast, not hurricane warnings. Joel, author of the book big money, think small. Elsewhere, President Donald Trump arriving at fort myers, florida, right now. That is air force when you are looking at. He will survey hurricane recovery efforts. In just a few minutes time, he will receive a briefing from the costar, fema, and other officials. He is joined by the first lady and the Vice President arrived earlier. We are waiting for remarks from there to pelosi. Lets take a listen. As you know last night, we had a meeting with President Trump where we worked to a plan to work on agreement to protect our nations dreamers from deportation. We insisted that the dream act, the one introduced, will be the basis for the protection with Border Security measures, but it will not include building a wall as we go forward. Vonnie you are watching nancy pelosi, the House Minority leader there. Following aing dinner last lead at the white house along with the Senate Minority leader, Chuck Schumer, posted of course by President Donald Trump. Hoping for bipartisan agreement on dreamers. Speaking on the Border Security effort, it is not clear that all sides are in agreement, but as we heard earlier from marty, in agreement to make an agreement. Lets get to kevin, who was on capitol hill for us. Kevin, chief washington correspondent of course. There was a little bit of confusion this morning because of the tweets, but essentially there is no confusion. There is a willingness to come to an agreement on dreamers. It is just the Border Security and what that will look like and how everybody will agree to that. That is the sticking point. Kevin yeah. Confusion is a good word for it because i have spoken with several aides in both parties this morning, back and forth with them, trying to say, what has changed since last week when this initially happened with daca . What they said essentially is there has been no change. There is still goodwill amongst republicans, democrats, and the administration to try to Work Together on something, but really, no new details. Where it gets interesting is the president suggesting in the tweets as well as Sarah Huckabee sanders in Public Comments that the wall, and lets be clear here, it is the wall, is going to become something of a sticking point. Democrats are not going to negotiate at all, according to my reporting, if they feel they are handing the president a victory on the wall. Vonnie in fact, Chuck Schumer just mentioned that in the senate. He said democrats will not agree to the wall. It does appear the president might be walking back slightly his hope for what the wall would have been, no . Kevin i think that is an excellent point. We saw this in his comments as well as again from Sarah Huckabee sanders as well as in his tweets earlier this morning in which the president said that construction is already underway along the u. S. And mexico border. So perhaps he is suggesting that he has already gotten a little bit of the wall, but lets also take a broader step back particularly if you are an investor watching what is going on here in washington. A lot of political theater going on here is that congress. Nafta negotiations al are also underway. That is particular in relationship between mexico and the u. S. They are not willing to negotiate on any type of wall as the president has called it. That is a similar argument the democrats are making. If the president is trying to get a win here on that issue, it is going to be really hard for him, and it will be fascinating to see what happens. We should also note that conservatives are speaking out some of them already about the president seemingly negotiating. Vonnie kevin, i am going to have to drop you. We will go to the president as fort myers airport. President trump we are not looking at citizenship, amnesty. We are looking at allowing people to stay here. We are working with everybody, republicans we are working with democrats. I just but with paul ryan. He is on board. Everybody is on board. They want to do something. We are not talking about amnesty. We are talking about taking care of people, people that were brought here, people that have done a good job and were not brought here of their own volition, but very importantly, what we want to we have to have a ball. If the wall is going to be obstructed when we need the funds at a later date, we will be determining how much we need, then we are not doing anything. What do you say to senator Charles Bradford . President trump what we are doing is doing it in conjunction with the republicans. We have a very Good Relationship with a lot of people. A lot of people want this to happen. They expect it to happen. We will see if it happens, but we will only do it if we get extreme security. We cannot only surveillance, but everything that goes along with surveillance. Ultimately, we have to have the wall. If we do not have the wall, we are not doing anything. There was no deal. They just said they did not say that all. We will talk about that, but i think a deal will be made. No relief for Daca Recipients unless you get the wall . President trump they cannot obstruct the wall. The wall to me is vital. If i do not get the wall what is to come first . President trump we have to have an understanding whether it is in the budget or some other vehicle in the early short time that the wall will be funded. Otherwise, we are not doing anything. Clarify what you said yesterday when you said the wealthiest americans will stay the same, maybe pay a little more. Some people took that as you may raise rates. President trump wealthy americans are not my purity. My priority are people in the middle class, and that is where we are giving the big tax reduction to. It is about the middle class and jobs , and it is about bringing jobs back to the country, bringing back the companys back so that companies can get a reduction. Right now , we are paying the highest tax rate in the world. We want to bring that to around 15 . That would make us competitive with china and other countries. My priority is bringing companies back, bringing money back into the country. There is trillions of dollars outside of our country that we can bring back, but the taxes do not allow it to happen. Understand my priority is jobs. Very simple. It is jobs and the middle class, taking care of those. Would you possibly raise rates on the wealthy . President trump i do not think we will have to do that, but this is not to benefit the wealthy. It is to benefit the middle class and to benefit companies where they are going to be producing jobs. We want to produce jobs. We want to produce jobs in this country. We want factories coming back, and they are already coming back. We want factories coming back into our country. Right now, they are leaving our country. They have started since i have been in. You look at michigan, ohio, they are starting to come back, but to really bring them back, we have to reduce our tax rates. We are trying to bring it down to around 15 . But if you reduce the individual rates, they will raise taxes on the wealthy. President trump what is going to happen is the individual rates coming down will be substantial for the middle class. We want to take care of the middle class. We want to take care of jobs. The way we are going to get jobs is to make our companies more competitive. Dont forget, a lot of his companys are Public Companies owned by the public, owned by pension funds, owned by vehicles such as that so they will get a pay cut of it. Our priority is jobs and the middle class. Ok, now lets go and see how we are doing because i think we are doing a good job in florida. Thank you. Thank you. Vonnie you have been watching President Trump as fort myers. Given some comments to members of the media. He will be examining Hurricane Relief efforts in just a few getting briefed by many agencies, but he did talk 11 about the dinner last night with the house and Senate Minority leaders. For more analysis , lets bring it kevin cirilli, who continues to be with us. From capitolst hill, one of our congressional correspondent. The president said some things that i wonder if there is conflict or no. He said for example, if the wall will be obstructed at a later date, we are not doing anything. We will only do it, he is referring to some kind of a daca legislation, if we get some extreme security. Extreme security. He said, i think a deal will be made before six months. Is there a conflict between what the president is saying and what the democrats are saying . He is threatening a fine needle here. He is not contradicting schumer and pelosi in the sense that they are saying there was not a final deal reached. There was a principal reached to include some codification of daca and Border Security. He was not clear what he wants on the wall. He was not insisting that it be part of the deal, but he made clear he wants it and will not tolerate democrats obstructing it in perpetuity. This morning was schumer and pelosi contradicting this idea that the white house and them are not on the same page. There is an agreement to move forward with this, but the Details Remain far from clear. I spoke to one republican leader in the senate, the number three ranking republican, who said he is open to an agreement in principle, but he does not know what is in it, what President Trump agreed to. They have a long way to go. Mark kevin, this goodwill in the air to Work Together on some things, could the wall, as trump referred to, ultimately obstruct any good intentions between both sides . Kevin i put that question last night to a republican pollster who suggested that the president might have to tweak his communicative strategy because the wall has become a symbol of sorts in opposition for democrats as well as when we talk about nafta, Mexican Government officials. But stopping opioid addiction, stopping drug cartels, that is something that when you look at polling in a little deeper into the states with the president was able to win back democratic support and win those states, that is something that is a different conversation. Steve king, a very conservative member in the house of representatives, tweeted out just three hours ago that reagan with industry in 1986, bush, obama led with interest th amne. Amnestyads with daca. The work as a lightening lot to say the least, and the president already trying in those remarks we just heard to push back against questions that negotiating with democrats is dealing with amnesty. Mark nancy pelosi is still speaking. She said the atmospherics of the dinner with President Trump were very friendly. What we are seeing here in this new reach out between the white house and the democrats, what does this represent in the evolution of the Trump Presidency seven months in . Sahil it is a fascinating question that many people are trying to put their finger on. We see a president who is frustrated with his own party to deliver on promises they make, notably the repeal of the of the oral care act, which they have been talking about for seven years. We saw some frayed relationships between the president and Mitch Mcconnell over the summer. I think the president is intrigued by this idea of cutting deals with democrats as a fallback plan if republicans are not able to land the bills on his desk. The fascinating thing is the one deal he cut with democrats so that wase harvey aid, cut against the objections of Republican Leaders come up with a belated on his desk in todays. Two days. It may be a lesson that if he wants to do something done quickly, working with the democrats may be helpful. But it is a limited universe of issues and politics that he and the democrats agree on. He remains a republican and solidly so on many issues. Daca seems to be one area he can find common ground. Citizenship. Bout this is not about amnesty, battling back what kevin talked king andh stephe steve breitbart, which has been very proud from. I very protrump. It will not support him. Battle he has to fight with his on base, if he can pull it off, he can pull something off president s have failed to point long time. Vonnie this legislation will hinge on the wall. , morell has been symbolic from something the mexicans would pay for an thousands of miles long to many Different Things over the last few months. Is there a way for democrats to agree to some kind of structure or something beyond drones and personnel that would constitute a socalled wall and give President Trump a win while handing democrats a win . This is a fake part that is unclear vague part that is