Of the major averages. We are seeing u. S. Stocks rebounding and staying at record highs. S p 500 is up as much. Financials seeing a rebound. Thirdquarter results. Bank of america posting the best profit in six years. Hospital stocks and insurers, we are seeing a hit as President Trump cuts obamacare subsidies. When it comes to data, weekly inflation weaker inflation than expected. But get a check of the news. Mark crumpton is here with more. Mark secretary of state Rex Tillerson says President Trump will not with draw from the Iran Nuclear Deal or reimpose sanctions. The president will say the pack is not in u. S. National security interests and Alert Congress to amend it. You can watch the speech live in just a few moments at 12 45 p. M. New york time right here on bloomberg television. The president assuring residents of puerto rico he will always be with them. Is tweet comes a day after he lashed out at the island, insisting the federal government cannot keep sending help forever. He took a softer tone today, saying the wonderful people of puerto rico have been unmatched. The latest brexit talks ended and a deadlock, in the u. K. Is hoping European Union leaders will bailout Prime Minister theresa may at next weeks summit. According to a top official, there is little appetite to make any concessions to help Prime Minister may. European leaders are expected to make it clear they will not be any trade talks unless there is a brexit deal. Ireland could be hit by a hurricane on monday. Hurricane ophelia is a category two storm with top winds at 100 miles per hour. It could become the strongest storm to strike ireland since 1961. One forecaster says the hurricane could cost ireland almost 800 million in damages. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Shery thank you. The Trump Administration has taken the most drastic step yet to roll back the Affordable Care act, saying it will stop making subsidy payments to insurers. The bailout of Insurance Companies through these unlawful payments is another example of how the Previous Administration abused taxpayer dollars, skirted the law to probably broken system. Top democrats said, instead of working to Lower Health Care costs, it seems President Trump will singlehandedly hike Americans Health premiums. Frazer,h me is zach Health Care Reporter for bloomberg. Zach, given that already many of these Health Insurers hike the premiums for next year in anticipation that this was going to happen, this is the raise premiums that much . Zach you are seeing the president s threats contribute to hikes. It is why insurers are raising premiums 20 to 50 next year. Folks who are going to buy insurance on individual markets are seeing higher costs because of the threats the president is now pulling through on. Vonnie either more markets that have no insurers there were not already uninsured . Insurers thathe have responded us said they will stick around for now. Folks cannot be feeling great about this. Lisa shery will we see a mass mass exit is . Exudus . Vonnie for somebody living in the midwest, d. C. There is something going on and health care. The republicans tried to change it several times. It did not work. It looks like it was all over. Is it now not over . Are you in jeopardy of losing your plan . Zach i dont think anyone will lose their Insurance Plan as long as there are subsidies to help. People will be able to sign up for their insurance with no with an open of roman with an open enrollment. Shery paul ryan backing this move, say obamacare has proven itself to be a fatally flawed law. Will the house continue to work with the Trump Administration to provide the market people a better system. Given that some of these people in fact have to actually get the federal governments help to pay for these premiums, if you take away the subsidies, wont this raise the cost of how much the government and the treasury have to help out these people . Zach thats right. You will raise total government spending. The Congressional Budget Office estimated if this continues for a decade it probably wont because folks are trying to fix it it could cost him his 200 billion extra. Vonnie this happened about 10 00 eastern last night. Earlier in the day we had this is the only thing. The executive order is still getting processed by various agencies and still have to get written up . Zach thats right. , it willtive order take time. Probably a few months before we see some rules from agencies for different kinds of new Insurance Plans. Outrers will have to find if they want to sell this our offer new kind of plans. Shery could face legal challenges . Zach we have seen new york and California Attorney general already said he will challenge this. We do expect that he comes in. Vonnie we are seeing curtis is him from the health care industry. We are seeing criticism from the health care industry. Who have a nonpartisan analysis of this . Is there an equivalent . Zach analysts have said the paymentst made these would make these payments and other Trump Administration after continuing to make these Monthly Payments for nine months is choosing to cut them off. That does raise questions. We will see a legal challenge and we will see what happens. Shery thank you so much for joining us. He covers health care for bloomberg news. Some bankming up, earnings from wells fargo and bank of america. Top analysts join us next. Also, President Trump is said to speak on the iran deal this hour. We have known about this for sometime. The exact remarks arguing about seven minutes. You can watch that live here on bloomberg television. Will come is asking china this up the manufacture and sale of apple iphones. It is qualcomms big shot at apple so far. It is many bitter legal fight between the two major companies. Apple shares are up about 4 10 of 1 . Qualcomm is now back at unchanged. Shery shares of three be systems are followin hp announced two new 3d systems that will come to market next year. Joining us is taylor riggs. the competitors that will start to feel some of this pressure. Incumbents will start to feel some of that heat. You are now seeing 3d down the most since june of 2016. Bad news for one is good news for another. Hp up more than 7 . Here is what it comes down to. Two new 3d printers coming out in 2018. One is a metal platform. The head of the hp printing business says that is a major step for them in reaching their goal. The number two and is a fullcolor 3d printer. Be theent says they will only one offering this type of mechanically robust and fully functional printer. Vonnie who us decides 3d systems might feel the presence . Taylor there were two main competitors. Looks like stratus is lower. Re. Tly lower the all should be concerned. Shery thank you so much for that. Vonnie major u. S. Bank earnings continue to roll in today. We heard from bank of america and wells fargo. Bank of america beating profit estimates. That was enough to overcome falling revenue from bond trading. Profits and wells fargo felt 18 feel by 18 . Joining us to rep. Dent is jason goldberg, senior Equity Analyst at barclays. He is equal weight on bank of america. What is your overall tank on Bank Earnings season so far . Was surprised you . Jason it has been a mixed bag. Long growth. Net interest margins continue to expand. Expenses have been wellcontrolled. With the exception of a modest reserve building credit card. On the flip side, Capital Market revenue has been pressured. Investment banking is down sequentially. At the same time we mentioned loan growth, while up, has been less than desired. Shery we were talking about this yesterday. We are condemning continuing to see losses rise for the banks. Mind thatp in loanloss provisions and loan losses are increasing office directly low levels. Charges for the industry are running at half historical averages. They have nowhere to go with higher. After Something Like three or four years of banks releasing loan reserves you are seeing building given that they loosened credit cards a few years ago. They have grown balances. You are seeing the loans begin the season. We think the health to the consumer is fine. We wish they were making more, but most consumers have jobs. When you have jobs you pay back your loans. You are seeing general seasoning. We are not overly concerned. Vonnie Net Interest Income was up 9 in bank of america which still missed estimates. What interesting trend are you seeing with Net Interest Income across the banks . It is not as we expected. Jason it is generally higher. Is quarter they are up again. The fourth straight quarter of margin expansion. We have not seen that in the last 15 years. Banks benefiting from the fed hikes and then lagging in terms of them increasing the pricing. Positive,h has been albeit a bit softer than expected. Particularly in the commercial segment as it is influenced by payoffs and paydowns. Shery revenue taking a hit as expected. We also saw that in jpmorgan. Low volatility across the board. We are talking about equities also. Good tax cuts and deregulation from the administration bring back some of that risktaking to the market and help this trading revenue get a boost . Jason absolutely. Volatility metrics at alltime lows. The beginning of the qe unwinding in the u. S. And overseas has potential impact to increase volatility and Interest Rates in fx markets. In addition to the extent you put in place some of the treasury recommendations to rollback financial regulation. We think that would help not only the banks, to help the banks trading partners putting capital to work more efficiently which can help as well. The biggest impact is the fact that you have tax cuts and regulatory reduction aiding Economic Growth. You see better Economic Growth and a lot of fiscal measures take hold. That will be the biggest driver of increased market activity, which is beneficial to the bank. Vonnie we are going to play a sound they soundbite from Brian Moynihan on the point we are talking about right now. Brian moynihan if there was a Silver Bullet you could shoot, we would shoot it already. This is hard work. Vonnie you reaction . Jason it is a lot of hard work. This administration has been added since beginning of the year. These bank stocks are running up the day after the the election on the hope a lot of things would be further along than they are. That is not to say we are not going to get tax reductions. I do think we look at the regulatory reduction. If you look at the treasury paper for banks and the earlier in the month for market activities, the majority of their recommendations do not require congressional approval. It just takes the regulators to put them in a place. Weh upcoming confirmations do expect that the start taking hold at year. Vonnie expects dest expense reduction is still difficult. Expense reduction is still difficult. Jason i think expenses have been controlled. You have not seen much growth. Revenue growth has also been less than desired. You see the ratios come down in the last few years. We expect them to continue to come down, both driven by the lack of new regulations and ultimately less regulations. And this move to Digital Banking and being able to serve the customers more efficiently in a digital world. Shery thank you so much for joining us. Jason goldberg at barclays. Today we talk with the cfo of wells fargo at 4 00 p. M. Eastern right here on bloomberg. Coming up, President Trump scheduled to speak about his strategy on iran in moments from the white house. We will bring that to you live as it begins. This is bloomberg. This is bloomberg markets. President trump is scheduled to speak about his new strategy on iran in just a few moments from now. According to secretary of state Rex Tillerson, the president will decertify the Nuclear Agreement with iran, but stop short of completely abandoning this the national agreement. Joining us from capitol hill is chief washington correspondent kevin cirilli. And joining us is nick wadhams, bloombergs Foreign Policy reporter. It cause ripples throughout the world . Nick it is a pretty collocated situation. The key for the time being is nothing is actually changing in terms of the iran deal. The United States is still finding iran to be in compliance with its obligations under the deal. It is not backing out of the deal for now. With President Trump will do is basically say, ok, i dont like this deal. I dont believe this deal is in the u. S. National interest, and now i will kick it to congress and ask congress to basically impose new legislation that would put new pressure on iran to curtail that the administration sees as other malign activities in the region. Kevin, other malign activities. The white house released a statement called a new strategy on iran. Kevin President Trump has had a recertified has had to recertify the iran deal twice while he was in office. Now he will send it to lawmakers on capitol hill where he will give them 60 days to come up with how they should deal with this on their own. I just spoke with a senior a good House Foreign Relations Committee chair ed royce, and the committee was not made aware of this decision last night or what he is about to unveil to not recertify this. Vonnie we will have to interrupt to listen to the president of United States. President trump thank you very much. My fellow americans, as president of the United States my highest obligation is to ensure the safety and security of the american people. History has shown the longer we ignore a threat, the more dangerous that threat becomes. For this reason, upon taking office i have ordered a complete Strategic Review of our policy toward the rogue regime in iran. That review is now complete. Today i am announcing our strategy, along with several major steps we are taking to confront the Iranian Regimes hostile actions and to ensure iran never, and i mean never, acquires a nuclear weapon. Our policy is based on reyedreyed a clea assessment, and their continuing progressio aggression in the middle east and around the world. Iran is under control of a fanatical regime that seized power in 1979 and forced a proud people to submit to its extremist rule. Raideddical regime has the wealth of one of the worlds oldest and most vibrant nations. And spread death, destruction and chaos all around the globe. 1979, agents of the Iranian Regime illegally seized the u. S. Embassy in teran and held more than 60 americans oftage during the 444 days the crisis. The iranian backed terrorist Group Hezbollah twice bombed our embassy in lebanon. Once in 1983 and again in 1984. Another iranian supported bombing killed 241 americans, Service Members they were in their barracks in beirut in 1983. The regime directed another bombing of American Military housing and saudi arabia, murdering 19 americans in cold blood. Iranian proxies provided training to operatives who were later involved in out qaedas bombing out qaedas al q uedas bombings. Harbored highlevel terrorists in the wake of the 9 11 attacks, including osama bin ladens son. In iraq and afghanistan, groups supported by iran had killed hundreds of American Military personnel. The iranian dictatorships aggression continues to this day. The regime remains the worlds leading state sponsor of terrorism, and provides uaeda, has to al q below omas, has has below it arouses american ships and threatens freedom, navigation in the arabian gulf and in the red sea. It imprisons americans on false charges. And it launches cyberattacks against our critical infrastructure, Financial System and military. The United States is far from the only target of the iranian dictatorships Long Campaign of bloodshed. The regime violently suppresses its own citizens. It shot unarmed student protesters in the street during the green revolution. This regime has fueled sectarian violence in iraq and vicious civil wars in yemen and syria. In serious the Iranian Regime has supported the atrocities of regime, andsads condoned his use of chemical weapons against helpless civilians, including many, many children. Given the regimes murderous past and present, we should not take lightly its sinister vision for the future. The regimes to favorite chants are death to america and death to israel. Realizing the gravity of the situation, the United States and United NationsSecurity Council saw over many years iran to stop irans pursuit of nuclear stop irans pursuit of Nuclear Weapons with a wide array of sanctions. The Previous Administration lifted this sanctions before what would been a total collapse of the Iranian Regime. Through the deeply controversial 2015 nuclear deal with iran. This deal is known as the joint comprehensive plan of action, or jcpoa. As i have said many times, the iran deal was one of the worst and most onesided transactions the United States has ever entered into. The same mindset that produced this deal is responsible for years of terrible trade deals that have sacrificed so many millions of jobs in our country to the benefit of other countries. We need negotiators who will much more strongly represent americas interests. Providedar deal urgently needed relief from the intense domestic pressure to sanctions the sanctions had created. It also gave the regime in immediate financial boost. And over over 100 billion it could use to fund terrorists. The regime also received a of 1. 7cash settlement billion from the United States, wasrge portion of which physically loaded onto an airplane and flown into iran. Just imagine the side of those huge piles of money