Cutting the top earner rate to 35 and are leaving it to congress whether to provide create a higher bracket. Our bloomberg reporter has been for a while and is on capitol hill. They get got a uniform frame hold. Is this possible . Sahil it is not clear that it is possible right now. Right now this plan is a lot of sugar and not a lot of spinach. Of course people want to lower their rates and add additional benefits like lowering the standard deduction, but we are talking about multiple trillions of dollars. It would be a huge hit to the treasury if they passed it as is without eliminating loopholes and carveouts they say they will. I do not see how they can do it mathematically. Shery any details at all on how they plan to effect those rate cuts . Sahil they are talking about eliminating itemized reductions rather than mortgage and charitable giving. Implies the elimination of the state and local tax level. That is going to run into some headwinds among republicans. It is mostly blue states like california, new york, and new jersey were taxpayers benefit. Where taxpayers benefit. Even the ones they have on the table are far from a sure thing. Does that mean it must be deficit neutral . Not think grover northwoods has laid out a demand that it be revenue neutral. I have been talking to some tax experts today, and the most unclear part of this is how it will be pay for. Paid for. There he was a lot of talk by President Trump earlier this month saying the wealthy would not benefit from this plan, it will be a middleclass tax cut. That is not the case in the defund details we have seen so far. If you are talking about lowering the top rate to 35 , momandpop shops and trump organizations will be lowered. That is a significant tax cut for the top 1 . Bloomberg National Political reporter, thank you. Shery for more on the implications, sheila bair is the chairman of the fdic and a staunch republican who has been critical of President Trumps policies. Us your assessment of what you of heard so far and what you think of this tax plan. Sheila there are not that many details yet and i have only gotten to skim it. We need to transition to a territorial tax. Our tax code gives corporations affirmative incentives to go overseas so getting that money back, creating better incentives to invest and create jobs here is probably good. On the pass through, i am overseas so gettingtroubled by f the passthrough rate to 25 . It suggests they will try to limit that to Small Businesses and i hope that is the case, because the richest people in the universe like the people who run private equity funds and hedge funds typically organize somselves as passthroughs they gain it through tiered interest on the private equity side. Kicking them down to 25 when a lot of them should be paying the top right now makes no sense. When you talk about benefiting the wealthy, that does not just include wage earners. The wealthiest people are the people who make their lion share the lion share of their income from investment. A huge tax break for people that would benefit and do not need it would not create jobs. The same thing with the estate tax. Not what wills kill the bill, because senators will be pleased for the most part and will say that will enable job creation. What will kill it for gop senators . Sheila they have to stick to the 1. 5 trillion in the senate if they want to pass this with a simple majority. That is a conservative assumption that is based on static, nondynamic modeling and assuming based on current law which assumes the current extenders would expire. 1. 5 trillion is a pretty good constraint, so they will have to come up with ways to pay for this and i hope they give some really good thought about taxiding tax deductions, relief, will this help our economy and produce jobs . What will help the economy versus giving money to a lot of people who already have a lot of money . That is the discipline i am hoping fiscal conservatives in a hard look. Take i must say, in fairness to the trump administration, there are some things that surprised me. It looks like they want to limit interest the duct ability to. Hought was deductibility i am going to give the benefit of the doubt and say they will be thoughtful and provide tax incentives to help our economy, and middleclass tax relief. Our economy is driven through middleclass spending and low and middleclass families are still strapped. Giving them tax relief make sense. Shery are you giving them the benefit of the doubt when they claimed the economy could gain 3 annually . That, they may assume that i believe under the senate rules they cannot score it on that basis. I would love to think that is true, that it is not responsible tax policy to make that assumption. It is also important to note, we are not overtaxed as a country. The percentage we pay of our gdp is pretty low compared to other developed countries. The problem is the way it is unfairuted, it is highly and the corporate code makes it competitive. Closing the loopholes and broadening the base make sense. You do not need to overall reduced tax revenues to stimulate the economy. Lots of Research Shows by lowering rates and broadening the base on a revenue neutral basis you can stimulate the economy. That is what happened in 1986 with good result, and i hope people understand that. You do not really need to cut the overall burden because it is not that high in the u. S. Vonnie vonnie we were putting up some of the geographical areas where it will change. It will affect big cities and states like new york and california immensely, and states like kentucky and omaha home oklahoma. , the lower 10 ng the lowest rate from to 12 and trying to offset that with some kind of better deduction, does that work . That allow people to get more money in their pockets . Sheila i like the idea of doubling the standard eduction, removing the need to do a lot of itemization. ,hat the net benefit will be their paper say there will be a net benefit increasing the butom rate i 12 , definitely the standard deduction will come out ahead. I think we need to see more details. I do not know why they want to raise the lower rate. Maybe they did that for revenue reasons. Income families, they are the ones that need help and i would try to target them as much as possible. Shery sheila bair, thank you so much for joining us. Trump delivering his tax beach at 3 20 pm eastern, 8 20 p. M. London. Vonnie we are halfway into the trading day in the u. S. Bit of we are seeing a an interesting diversions between the dow and s p 500 and nasdaq. The dow and s p 500 are up and the tech heavy nasdaq is up more than half a percent. We are halfway through the week and at this point we are looking at weekly declines for the major averages. To the dow and s p 500 because investors are on hold ahead of President Trump laying out the tax plan, but parts of the market are anticipating something good to come. If we take a look, this is an index of highly taxed companies relative to the s p 500. We see out of the election, the poppedtaxed Companies Higher with investors thinking that taxes would be cut but when details did not emerge, they not only continue to drop but dropped below where they had been trading prior to the escalation. Now investors are encouraged and shares are recovering. Vonnie abigail doolittle, thank you. Citigroup has become a dominant player in synthetic cbos, but is there last risk than a decade ago . Less risk than a decade ago . Shery welcome back. This is bloomberg markets. I am shery ahn. Vonnie i am vonnie quinn. Mark what the gop turning its attention to reforming the tax code, Chuck Schumer says proposal sent in by aggression a leaders and the white house will not fly with the american people. Each of these proposals would result in a massive windfall for the wealthiest americans, and provide almost no relief to middleclass taxpayers who need it most. Mark senator schumer also called the gop tax proposal wealth fare. The president will discuss it at 3 20 eastern time. The u. K. Prime minister theresa may says she is bitterly disappointed by the u. S. Governments decision to slap an import tax of almost 220 on bombardier. They will work with the company to maintain jobs, including several thousand in northern ireland. Bombardier used unfair government subsidies to sell aircraft at artificially low prices. Maria has strengthened off the coast of North Carolina and is now a hurricane again. The storm is expected to stay over the atlantic and not hit land, but it is stirring up rough surf and high wind here at dangerous rip currents and huge waves are expected along the east coast over the next few days. Over a wake week after an earthquake rattled mexico city, search teams continue rescues. It killed more than 330 people. Recovery teams are hampered by Construction Equipment which is blocking many local streets. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Vonnie citigroup is breathing debtback into the one of into one of the most into one of the most cdos. They are becoming a dominant player. With more is Dakin Campbell who covers citigroup. Talk about this trader becoming the center of this controversy. Chen andr name is gina it is safe to say she is a survivor. She joined in 2005 when the structured credit market was going very strong. She had a front row seat further crisis and the losses synthetic cdos caused. She took a little bit of time off to go home. In the last six or seven years she has been at citi trying to revive this market. To say shee talked is very passionate, believes in the product. Product because of the financial crisis, how do citigroup justify bringing this back . Dakin we got that question a lot from readers when this came out. There are a couple of distinctions. The synthetic cdos that exploded during the crisis were tied to mortgage assets. These are tied to corporations. The collateral to these instruments is because it is corporate and not subprime mortgages, it is easier to understand and safer. The other is the way they are structured. In the past, the bank would slice up the risk and distribute as much of it as they could and keep some of it on their Balance Sheet. And then windows went down in price the banks took lots of losses. Citigroup is distributing all of it. They say they are not keeping any of it on the Balance Sheet and to the extent there are losses, they would not come back to citigroup. Why arentonnie other banks embracing this, or are they . Dakin they are starting to. We have heard of a couple who wanted to get into this business synthetic cbl cdo name and term is still toxic. Say,u are at a bank and the ones that lost money in the crisis were tied to mortgages and these are tied to corporations. Risk officers do not want to hear that. They know that synthetic cdos caused a lot of losses. Shery it goes bad. Vonnie exactly, dakin exactly, so it is through a process of evaluation that these banks are getting people on board. Shery many people think it was. Ad, or toxic as you called it why is it resurging . Dakin because Interest Rates are so low and have been so low for so long. If you are a person investing in these now, maybe three years ago you would not have been because you saw Corporate Bonds that were higheryielding, or other alternatives. Now because yields have stayed low for so long, corporate yields have come down. Other instruments that were higheryielding have come down, so you have to look to Something Like this which has embedded leverage to get the high yields. Vonnie corporations being part of this, what kind of corporations . Is it geographic, industry specific, Credit Rating specific . Dakin citigroup is taking an index that is 100 Investment Grade names. They are working with the people structuring the deals to swap out some of those names and put highyield names in. Highyield names are riskier, bring with them a little bit of extra yield so that is how they are getting the yield higher. Is f these transactions so the names in each deal are different for each one. Vonnie sounds like we need somebody to suggest one. Thank you so much to Dakin Campbell. Shery bloomberg gets a rare sitdown with one of the most powerful women on wall street, details next. This is bloomberg. Shery welcome back. In this weeks episode of the show,rubenstein Philanthropist David Rubenstein set down with chairman and ceo Abigail Johnson about her past to success is a woman on wall street. David lets talk about your role as ceo, 40,000 employees. You travel the world to see them . Abigail i spend a lot of time traveling because we have major campuses all over the country and our International Company with different locations around the world. I try to make sure i get a balance between being in front of employees, in front of customers. Almost every time i visit a major location around the u. S. I do a town hall meeting. I hit as many of our client events as i can, because that is a great opportunity to go and see a group of clients in a very efficient way. David and you have a preference for flying commercial . Abigail i am traipsing through airports and getting on planes all the time. To people recognize you and say, give me some money advice . Abigail usually the people who recognize me are employees, so if i am in a city where we have a big base of employees and i am more likely to be recognized. Occasionally clients recognize me. David after the show they certainly will. Abigail absolutely. David do you feel pressure to recruit other women, the a role model for other women . Abigail Asset Management in particular i think is a great career for women. The idea that you come in and you are responsible for covering a bunch of securities, making recommendations. It is your responsibility to do that work. You get to structure your time and ultimately build your own personal franchise, being good at that. That is a great opportunity for women, i believe. In our organization, have some very senior women in addition to myself and we have a real need in our business right now to recruit more women because when women customers come into our branches, very often the first thing they say when we are trying to get them paired up with a rep is, i would like to work with a woman. We do not have enough women who are customer facing reps to serve all the women customers who come in. Becausehey say that they presume women are better Money Managers . They might be thinking that, but they might be thinking, i am just more comfortable talking to a woman. We have studied women as customers compared to men as customers, and they are really quite different. To underrate their abilities as investors and be financial stewards of their own financial situation. They tend to describe themselves beginners,ers, even though they know more than they give themselves credit for. They tend to be more thought a call study years methodical study years and learners of financial information, and very often they believe that a woman would be easier to talk to you about something that is as personal and potentially complicated as their financial situation. Shery fidelity chairman and ceo Abigail Johnson, plenty more coming up. This is bloomberg. What did we do before phones . They save us from getting lost, getting hungry, and getting tired of places like this. Phones changed everything shouldnt the way pay for them change too . Introducing xfinity mobile. Where you can pay for data by the gig, and share it across all of your lines. No one else lets you do that. See how much you can save when you pay by the gig. Xfinity mobile. Its a new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Vonnie and that is midtown manhattan you are getting a glimpse of the water there. I am vonnie quinn. Shery im shery ahn. This is bloomberg markets. Vonnie lets get a quick check on how the major averages are doing, unchanged for the dow. Erasing some of todays games. The nasdaq is flying away with things up two thirds of 1 . In terms of other assets on the move, lets look at the dollar index, which is appreciating following Janet Yellens comments yesterday. 2. 29 ,year yield is that highest and selling off treasuries. That widen the 210 curve a little bit again, up 82 basis points. Futures at 52. 08 a barrel. That is how we are looking at midday. It is time to get the first word news this afternoon. Mark crumpton has more. Mark Senate Majority leader Mitch Mcconnell says moving on from the repeated failures to repeal the Affordable Care law is a refreshing change. An opening floor comments today in the senate come mcconnell said it was time for the finance committee to get to work. This is our once in a Generation Opportunity to fundamentally rethink our tax code. We can unleash the economy, promote growth and jobs, and improving american competitiveness in the global market. Concedinger mcconnell reforming the tax code was a daunting task. President trump will discuss the tax plan at 3 20 p. M. New york time. You can catch it live on Bloomberg Television and on bloomberg radio. Secretary of Defense James Mattis was apparently the target of an attack at an airport in afghanistan today. Thats according to the official twitter account of a taliban spokesman. Mattis and nato secretarygeneral have already left the kabul airport when rockets were fired at the site. Secretary mattis called the attack criminal by terrorists. By relief effort Hurricane Maria and puerto rico has largely been concentrated in san juan and many outside the capital say the have received little or no help. People say they have seen no one from the federal or puerto rico government. The storm left nearly everyone on the island without power and most without water. Espn reports that louisville has fired mens head basketball coach rick pitino amid a federal investigation into recruiting, fraud, and corruption. The schools Athletic Director was also reportedly fired. 10 people were charged with driving athletes to try to influence which cools they would attend. Patina was not named, but louisville admits its program is part of the investigation. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Vonnie janet yellen, the fed chair, has tried to make policymaking as steady as she goes as possible. When the usual economic models dont apply, how can fomc communicate its thought process to the markets . Governorderal reserve dan turley spoke with bloomberg earlier today about yellens intentions in her speech yesterday. Dan there is not a working model that on a meeting to meeting basis can give any sort of precise guidance to the fed as to where inflation is headed. People understand directionally that removal of slack from the labor market and from the economy more generally will start pushing inflation, but how quickly a and when is something that no one has been able to pin down. In the last be years, and has not been that much of an issue because there were obvious reasons why inflation was not moving up. Now i think is the chair indicated yesterday, it is more to revive the Alan Greenspan quote of more than a decade ago. Of more than a conundrum. It is of more increasing importance Going Forward because this is a moment in which you have to make decisions about increases on a meeting to meeting basis. David if you are member of the fed and the fomc, which you were until very recently, how do you if youprice stability dont have gps to trust to tell you where inflation is going . Dan inflation is observable. ,s the chair said yesterday because Monetary Policy operates with a lag come you cannot wait for things to totally develop before you react, but i think you can watch to see what is happening with actual inflation a post to just assuming opposed to just assuming its moving three or six or nine months in advance. What you have seen the last months or so since the fomc meeting is the dispositions of members of the fomc. Its a must like a default position that each of them has. In some respects, the most important thing that chair did yesterday was try to explain as clearly as she could why she has predisposition that she does. Its the world in which the models are not reliable enough to tell you on a meeting to meeting basis what to do. Exceedingly clear with how youre thinking about inflation and to communicate that to the market. David is there a risk in that . Proverbial horses is out of the barn before you can run with it . Dan that is what the chair was saying yesterday. Based on her reduction of slack in the market, her expectation now is that there will be a gradual return to the 2 target. I dont think anybody believes he can just wait to get to 2 or wait to get about 2 . Comes in how much evidence in Movement People would like to see before they act further. Present Charlie Evans of the chicago fed made that point as well. Vonnie that is a former Federal Reserve governor speaking with bloomberg today. Shery lets continue that discussion and dissect what chair janet yellen said. She conceded yesterday that stubbornly low inflation is a mystery to her as is everyone else. Take a listen. Hair yellen we may have underestimated the inflation objective or even the fundamental forces driving inflation. Shery lets bring in daniel moss for bloomberg we appear this is a big acknowledgment, isnt it . What exactly does yellen not know here . Hear a its great to recessive tatian of the word conundrum and it was a good one to use, especially in the context of Janet Yellens speech. Visually two layers to yellens speech. We are confident on the course we are on a gradual increases will get back to 2 . On a secretary level, she called devoted quite a bit of ae to existential issues. Do they understand the link between jobs and inflation . Do they understand inflation at all . Are they Global Forces at work hemming it . Vonnie technology forcing that more than ive ever heard her acknowledge that. Why are we so confident is the right thing to move in december . Daniel because their models tell them that. If youre going to throw out the traditional model, you better be sure you have a replacement model. Otherwise you will get slaughtered in the world of public opinion. She is prepared to concede that the fed could be wrong. The fed could be looking at this the wrong way. She is not there yet. It is worth pointing out as we have discussed on the show before that this is not a uniquely american phenomenon. The issues that she is airing our something that central bankers around the world are really come to grips with right now or trying to come to grips with. Why isnt inflation behaving as the model say it should . Shery tell as a little about the factors that janet yellen actually talked about yesterday that could reshape the inflation landscape. It is not just based on the fundamentals we already know about, including jobs. One issue she probed is whether the link with jobs is there but at a much lower level of unemployment. Right now we are at 4. 4 in the u. S. What if the level is 4 or 3. 5 or 3 . She talked about whether we should consider the labor market as a global phenomena rather than the national follman phenomenon. Shes talking about issues changing the retail landscape Like Technology and how tough it is for retailers to increase margins. Vonnie given that she may not be reappointed to the fed chair position or even if she is, she may not accept, will she do some work on this . Would that be excited to have the fed chair currently work on this in the future . Ben bernanke has written a lot about the past, but this is something that is still playing out because the data isnt there yet. Daniel in the event that she is not reappointed, and i dont know that, that would be a great way to contribute excuse me, continue her very strong record of public service. John williams made some comments earlier in the month that were only published yesterday where he seemed to be saying that we need a global debate here. Bring it on. Pretty interesting when you consider that one of his mentors is janet yellen. Vonnie looks like it was brought on it seems to me. Shery daniel moss, thank you very much. Is set coming up, amazon to unveil a hold a range of products today at the Companies Seattle headquarters. What should consumers and competitors may be more importantly expect . We will have more next. This is bloomberg. Shery welcome back. This is bloomberg markets. Im shery ahn. Vonnie i vonnie quinn. Micron technology of more than 7 after reporting earnings that beat. On top of that, the memory and storage chipmaker forecast another strong quarter. Joining us now is taylor riggs. Taylor its all about the future forecast Revenue Growth and matching expectations. They are expecting growth to be 60 and thats a pretty good especially after they came up two quarters of 90 growth each, so really making a lot of games. If you look at the numbers, youre looking at 6. 3 billion. This time a year ago you are less than 4 billion. If you take back on a longterm chart, you can see how high they are. There are the highest now since going back to the. Com crash. Is cap asked in spending. Cap x in spending. Memory chiptter units that have better capabilities so the street is excited about that spending and projects that could boost margins. Shery thats good news for suppliers than . Taylor always good news. We are looking at Applied Materials and the stocks are trading higher on this news. Supplier certainly getting a boost. Are forecasting to be 7. 5 billion from estimates of 5. 7 billion. Not only giving the stock but the suppliers a boost. Vonnie taylor riggs, thank you for that. Thats our mover of the hour. Shery amazon is having a gadget packed year. Just under an hour, the ecommerce giant is set to unveil a menu of new products at an event in seattle. Hardware products or not the cornerstone of their business, but they have been prioritized as an important driver to the platform. For more on what to expect from todays announcement, mark gurmans lives from seattle. Tell us what are we anticipating from this event that starts at 1 30 p. M. Eastern. Cooking upn has been a bunch of new gadgets ranging thata new echo speaker plays sound and music better to go after apples device coming out in december. The company has been working on these classes to basically put that voice functionality for buying products and sending messages in your ears with a pair of headsup classes. Theyre also working on a new settop box functionality with built in microphone. You can basically connect these new fire to these to your Television Set at home and yell commands and change the channel and search alexa from your couch. Vonnie that something fun. How our competitors going to react . Mark its a busy season for all the major Consumer Tech companies. Applezon today, we had with the new apple watch an iphone eight and 10. Theres the own apple forte tv a couple weeks ago. We have google and nest a couple weeks ago. The composition for eyeballs and sales for this blockbuster Consumer TechHoliday Season is heating up, especially with amazon jumping into the. Today. Shery could we expect more upside for the start . Mark the thing to know is that thus far the Consumer Products have not been a core part of amazons business. They are not what people investor trade on the stock. If they come out with more devices and market them and make them more important to the companys bottom line, then i think investors would pay closer attention to these devices and the stock in the future. Vonnie is this adhering to the Holiday Season . Will we get these products immediately or will there be rollout dates later in the year . Mark typically what amazon does when they announce these products is that they roll them out on a rolling basis. Its usually different. Sometimes they will be available to purchase the day of what they want be available to ship the day off. Theres a device that tells you how to look at the camera and the only allowed people with certain prime situations to buy the product. Itll be interesting to see how they roll these new devices out. Shery how does this play to their Business Strategy . We know that they are not believe the hardware focused company. Does that mean they are going to start focusing on the more . Mark i think so. This is the first time in the number of years where they held their own splashy event at at their headquarters in seattle. Do device launches one of the time, but this is the first time they are doing multiple big announcements in one day. It sort of like what we have seen apple and google doing. Its becoming more part of their strategy. Back to the bottom line, alexa is a key kind of it being able to buy products anywhere in their home. They want to put alexa in any and anything that they will be able to get microphones and the speaker into so they can allow people to buy cat litter or paper towels and other stuff for the homes just what there was. Just with their voice. Vonnie the battle for the living room is really heating up it seems. What about other makers . For apple, you have at developers and so on that listen closely to these events. Does amazon plan on partnerships that willor anything have an additional focus at these events . Developeron is a Big Committee on its own, especially for its aws products. Community developer for people to write applications for these devices. The alexa store is plenty full. Theres lots of ways for people to integrate. Syria, alexa has a much deeper practice of integrating with developers. That will serve them well for these new devices whereas the home pot does not really integrate deeply with the full apple developer community. It will be interesting to see these two players go headtohead in that speaker space Going Forward. Shery mark gurman, thank you, live from seattle. He will be monitoring the event this afternoon at 1 30 p. M. Eastern. Fbi upendedow the college baskervilles underground economy. We will bring you the latest on the ncaa bribery investigation. This is next on bloomberg. Vonnie this is bloomberg markets. I am vonnie quinn. Shery im shery ahn. Vonnie coach rick pitino is on the chopping block. Reporting that the head basketball coach is expected to be fired as part of the ncaa bribery investigation. Legal university, which has a major sponsorship deal with investigationnder , and they will be holding a News Conference at 1 00 p. M. Eastern. Joining us now is our Bloomberg News reported that has been covering all this. Is rick pitino in charge or gone . It certainly sounds like he will be fired. This is not the first rodeo for rick pitino in terms of ncaa violations and he will not be the last person that gets caught up in this whole doj web. Investigation , and they will bethis is a pree layout that the department of justice put forward yesterday and it will start attracting a lot more people. Vonnie does he end up getting jail time . Can he get a deal if he gives every other coaches name involved in this . Eben all that remains to be seen. It is all unclear how far the u. S. Government wants to push this. It seems there are a lot of head coaches and assistant coaches and let alone the folks that work on the morning managing side or Sporting Good side. There are a lot of people doing the kinds of things outlined yesterday. Shery explain to us what the allegations are and what this web of alleged crimes are. Eben this is the worst kept secret that there are people behind the scenes that are associated with schools and Sporting Good companies, financial managers, that are siphoning money to players on the side to get them to either go to a specific school or sign agent, if they gopro to sign with a specific company. This is all money being traded hands underneath the table. Its not hard to connect the dots between that and the ncaa rules on amateurs. Shery why crackdown on them now . Eben its a good question. The department of justice is not really do much in the College Sports space and are people out there criticizing them already for enforcing ncaa rules more so than bribery rules for example. This makes a much bigger deal when the Department Justices involved as opposed to the ncaa which has struggled to enforce rules in the past couple back it vonnie tickets. Vonnie does the spread to other sports . Eben this goes on the other sports. I feel that is confident that is true. Will be doj want to make an example of the toptier programs in louisville and South Carolina and auburn what will this go a lot deeper . Vonnie does this mean that some the top schools may not be the top schools down the line . Im sure this is a complaint from some of the lower schools that could not attract the top talent. Eben i would not go as far to say that this will be a Seismic Shift in terms of what schools are good at basketball and football and which ones are not. Its way too early in the process to say that. Theres already such a huge business difference between your skills like louisville, which Basketball Team makes 45 million, which is more than the entire budget of have to schools in the top division. Theyre so much financial and the that it will take a lot to separate here . Eben thats the big fallout from what happened yesterday. It may be that the ncaa amateurism rule where coaches ine millions and the ncaa 1 billion a year of college festival. The only people not making money above ground are the players. That creates a risk reward scenario where the black market can list. Vonnie separate who the house ad who the havenots are. Shery will this increase pressure for players sharing more the prophet that is rick pw in the control room of the department justice. What happens next . Eben we will see who else loses their jobs here. Universities will be doing their own investigations. Adidas will be looking at their own company. If im nike and under armour, im looking down the ranks to make sure this is not happening in their. This affects a lot of the parts of the College Basketball ecosystem. You may see the doj continuing along this line. They said yesterday they were setting up a hotline. They said they are not done in terms of College Basketball in college football. You will be hearing about this story throughout College Sports for a while now. Vonnie you will be reporting on that Conference Starting in about four minutes. Shery be sure to tune in tomorrow for an exclusive interview with legendary shortselling jim chanos on miss . Yo what did you vonnie dont forget that you can watch everything on our tv function. This is bloomberg. What did we do before phones . They save us from getting lost, getting hungry, and getting nervous in places like this. Now phones can save us money too. Introducing xfinity mobile. With unlimited data for just 45. Thats the lowest price out there for one line. And you can get the same price on up to five. See how much you can save when you get unlimited on a new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. David its 1 00 in washington an 1 00 a. M. In hong kong. Im david gura. Shery im shery ahn. Welcome to bloomberg markets. David you are top stories were watching at this hour. President donald trump and Republican Leaders gearing up to unveil a longawaited tax plan. What that can mean for top earners in the broader labor market. We will speak with the junior senator from maryland, a key democrat. We will get his thoughts on what he thinks of the latest text details. They would get into why Campaign ChairmanPaul Manafort offered private briefings to oligarchs close to vladimir putin. David we are waiting for comments from the president in indiana. He is speaking to reporters are now talking about his secretary of health and human services, tom