The tuesday trading day in the u. S. Julie hyman is here. We are in the green, at least. Julie more record, in fact. Even though we see relatively modest gains, it is enough to push to new highs. The s p 500 up for the sixth straight session. A lot of the again we have seen has been fueled by various earnings reports. Look at the bloomberg. Looking at the s p 500s performance, we see a 1. 7 gain. On the bottom, we see the number of companies that have reported. We are now more than three quarters of the way through in terms of companies that have reported. About three quarters have Beat Estimates in terms of earnings. Lets look at the Companies Reporting today, specifically within the travel industry. Here, we have oil caribbean on the upside. Thecruise line saying that 2018 itinerary is booking at higher rates and higher value, according to the cfo. Fourth quarter forecasts are below estimates, but its thirdquarter numbers beat. S pulling up other trip advisor and priceline reported numbers that seem to indicate slowing growth. Costs are rising, according to priceline, as it spends more on customer service. Then, there is avis budget, which lowered avis budget. It cited the hurricanes some analysts thought it would help and not hurt business, but it turns out that was not correct. The dollar is rising. Crude oil down as opec comes out with new shale Oil Forecasts for the u. S. , and says production will be 56 percent higher than previously thought last year, seven point 5 Million Barrels a day in shale production by 2021. As the dollar rises, copper is down. 1. 9 . Gold also taking a hit. Down earnings here also about 1 10 of 1 today. Banks, the best performers. Health care the worst. Three stocks i will show you, all falling today. Reporting weaky sales in its largest market. Even i did rise to 1. 9 7 billion rise to 1. 97 billion krohn. Siemens gameshas shares falling the most since july. Workforce by one quarter, the turbine maker planning to only 6000 jobs. It is about 23 of its staff. It expects sales to slump in the current fiscal year. Of lego the score is 80 mollermaersk after a cyber attack. Cost it the june attack more then its estimates. Mainly because it is maersks line unit. Shares 6 lower today. Vonnie thanks. Now back to capitol hill. Continue its markup of the tax cut and jobs act. Some tensions flared after a series of lastminute revisions he tax bill, including Lori Davidson joins us with the latest developments. Are these things we should be expecting, or were they complete surprises and what developed yesterday . Were were developed we expecting some changes. The exact changes were a bit of a surprise. Democrats really blew up and were very upset. A democrat from new jersey said this is america, not moscow. But there is a little bit of political theater. Democrats probably will not vote for this bill. They have not been brought along with this process. They are trying to, during the markup, to get the soundbites they want to show voters they are representing the more democratic ideals. But expect changes to happen throughout this week. Brady has said for smaller , they are coming out against the bill. Life insurance could see changes, which has some revenue raising provisions in the bill. How youe big issues for keep u. S. Companies and their profits here. Lots of tech, pharma, are concerned with what they have seen. Brady continues to find tweak it. Changes are expected. Details are still to come, though. Vonnie we will check in with you throughout the week. As the tax debate continues, the outcomes of state elections in virginia and new jersey will set the tone for next years congressional midterms. Kevin cirilli, bloombergs chief washington correspondent, is standing by with one of the Top Democrats in the country. Kevin thank you, we are best thank you. Thank you. Tomre with dnc chairman perez. We have to talk about donna brazile. You established this Unity Division to establish unity. Are any changes going to be made to prevent any kind of memorandum like these to be signed again . Not run dnc does primaries. States run primaries. So the idea that we could influence states to something to do something untoward is absurd. Thewe have to make sure process of electing the nominee of the Democratic Party is fair to everyone. In that sense, we fell short. For instance, we will make sure that all of the primary debate calendars are settled before we even know who all of the candidates are, so that there is no possible suggestion that we are trying to help one or the other. A number of measures like this that are designed, including work with the Unity Division, to make sure we are creating a process that people feel is fair and inclusive. Some of the caucus processes if you are a shift worker, it is hard to get to a caucus. I want to make sure everyone can vote who is eligible to vote. What is interesting the past couple of days with regards to this is the notion that one candidate, in this case, hillary clinton, was able to sign an additional memorandum that was different from the other candidates. Voters outside of washington was that appropriate . I know this was before your time, but was not appropriate for one specific president ial candidate to be given different axes to the party than another one . Tom again, i have been in virginia the last four days. With all due respect, no one is asking what happened in 2016. They are all moving forward. Memorandum you veryred to also has a explicit clause that says this only applies to the general election, and you and it will not affect anything happening in the primary. Having said that, as i said earlier, we have to build trust in the process. And everything we do. I accept response ability for that. We have taken responsibility for that. Make sure the process is fair and people feel like voters are being heard and people feel that every candidate has a fair shake. That is what our north star is and has been. And will continue to be under my leadership. Kevin the you think it was fair for those memorandums to beside last time and will that be allowed to happen in 2020 . Tom again, everything we do will be offered to everybody. It is my understanding that all of those opportunities were offered to every candidate. Moving forward, we will make sure and we have already done this with our joint fundraising agreement that is a fancy term for a partnership with the state parties. It is a partnership that enables foro build infrastructure success. We have already signed one with all of the 50 states now, because we are not waiting until the president ial election cycle to do that. We are building our infrastructure of success right now. Kevin so when senator orrin says it is rigged, you say . Tom the Democratic National committee does not run primary elections to the states run primary elections. Kevin is it appropriate for democrats to even be talking to this white house about tax reform . Is there anything in this tax bill that you like . Or is this a nonstarter . Tom with all due respect, to call it tax reform i do not call it tax reform. It is a colossal giveaway to exceedingly wealthy people who do not need it. Our principles for real tax reform is people who are in the 1 and i applaud that they have accumulated that wealth. But they do not need another tax cut. People who are struggling to and if you have a Family Member has chronic medical issues, this tax bill will no longer allow you to deduct those medical expenses. If you are a person who has an educational debt, current law allows you to deduct some of it. What they are trying to do is say no. If you are trying to save for a home, you cannot deduct of the home mortgage. This is not a middleclass boon, as they suggest. This is a boon for wealthy people. The elevation of the estate tax trumpsft to the donald of the world. Kevin you are headed to Northern Virginia for the results. Watching fore be as to where the Democratic Party goes after the results come in . Tom i feel bullish. We have a lot of races. We have an opportunity in new jersey with a spectacular candidate. I think so Murphy Phil Murphy will be able to win. We will make history with sheila oliver, the first africanamerican lieutenant governor. Virginia is a purple state. So it is all about getting out the vote. Where youcom is should go if you want to figure out where to vote. The thing that gives me optimism is that we have better candidates. Ralph northam has been a healer in his work as a doctor. Ed gillespie, his opponent, is using all of the dog was a politics of the last few weeks to divide and create darkness, just like donald trump. Steve bannon just endorsed gillespie this morning. That embodies what they are about. They are about the politics of fear and division. Ralph northam is about bringing people together and continuing the progress. is the Unemployment Rate in virginia. That is enviable. We need to move forward. We need to expand medicaid in virginia. Make sure that if your opioid addicted, you will get treated. At gillespie will take that away. Ralph northam will make sure you get it. 2020 is the dnc in better position now than it was a year ago . Tom we are moving forward. We are all about modernizing our technology, communicating our values and living our values every day. That all adds up to success. We had been able to win a number of states special elections, beat red seats. Today, we have opportunities in new jersey and virginia. And a lot of mayors races. All invested in those races. We have a state Senate Election in Washington State that, when we win that race, will flip the senate democratic. They will give us the senate, the house, and a great governor. That is what we are all about. We take at the 2018, where we have tremendous opportunities, not only in the u. S. House but in the senate. The center field continues to expand for democrats. Perez,dnc chairman tom thank you for coming in. I take it you will not be riding your bike in d. C. Tom not today. We will put a few hundred more miles on today. Vonnie kevin cirilli, bloombergs chief washington correspondent. Lets check in on the bloomberg first word news. Emma chandra hazmat. Emm emm achandra has that. Seoul,he president is in where he met with south koreas president. Readyump said the u. S. Is to use it for range of capabilities to tackle that north korea if needed. Japan is in talks about buying the advanced aegis missiledefense system. The sale could take several months to complete. Japan to buy americanmade weapons. In saudi arabia, the anticorruption crackdown is expanding. Banks are being asked to freeze the accounts of dozens of people who are not even under arrest. Prince alwaleed bin talal and others of businessmen are under arrest. Last week, the house of commons approved a motion calling for Government Research to be shown to members of the brexit committee. 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. Mark coming up on bloomberg stunning weekend of events in saudi arabia, features in focus is next. This is bloomberg. Live from new york and london, i am vonnie quinn. Mark i am mark barton. Time for futures in focus. Oil remaining near a twoyear high. Tensions swirl around saudi arabia. Joining us is the president of the r epstein position. Does this saudi story support this geopolitical risk premium on oil right now . Is an interesting story. There are two ways to look at it. As looking at it as cleansing of house, a better way to do business. I have a different point of view that should be brought out. If you have the kingdom willing to do this to family and so on, as a minority shareholder in a company, what rights are you going to have down the road . So i do not know what this all means. I think this is a consolidation of power. I think it is a sweeping out of the old, bringing in the new. The question is how much power are we putting in the hand of this new crown prince . That is what this will all be about. Whatever he thinks is right, that is the what youre going to go, because you are just a minority holder. As for crude oil, it is getting high. Brent is a good number. The good news is we have a good export market. We can afford to put that on ships and be competitive in different parts of the world. What it will do is you will bring out the shale producers. , theird dollars a barrel vti, you bring in canadian oil at 65 a barrel, wti, you bring in canadian oilsands. Mark what is your key takeaway . Ira more shale oil coming out of it and more demand here they are looking at the year 2040. They say we will kick up oil demand, primarily from china and india. Who is to argue with that . The only thing that those that after the world recession and the market gets a setback. Alling that, it looks like systems go, even with the technology out there with electric cars. A tried to drive 1000 miles in an electric car from point a to point b. Not easy. Mark interesting report from google transit buses bitcoin surge is attracting interest towards cryptocurrency and away from gold. What do you make of that . Ira i believe it. The du quoin has nothing to do with the storage of value. The point is how do you hide money. It is that simple. The reason for these cryptocurrencies is illegal. It is not a storage of value. I want you to hide my name that is what it is. With moreorld, regulation, it will be different. Bitcoin is getting more hits on gold. Han the word that says a lot. Mark ira epstein. Vonnie still ahead, bill ackmans hardfought battle with adp is at an end. For now. This is bloomberg. Mark this is bloomberg markets. Im mark barton in london. Vonnie from new york, i am vonnie quinn. Time for a look at the biggest business stories in the news right now. Investor bill ackman has lost his bid for board seat at adp. Theshareholders rejected slate after a hard fought battle. Capital ising looking for good news after losing billions in valeant. Toyota took a 50 market share in the u. S. , bigger than ford took a 15 market share in the u. S. , bigger than fords. Broadcom is ready to go hostile for the record deal. Broadcom is prepared to launch a proxy fight if qualcomm rejects the biggest tech deal. That is your latest Bloomberg Business flash. Gope Speaker Paul Ryan and leadership are holding a News Conference on their tax cut and jobs act right now. You can watch that affect on the bloomberg. Just go to tv. Youre watching bloomberg markets. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Whentertaining us,es getting us back on track,hing . And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Live from bloomberg World Headquarters in new york and london and locally, i am vonnie quinn. Mark i am mark barton. Lets check in on bloombergs first word news. Emma chandra has more from new york. Emma trump is calling north korea a danger to the entire world. The president met with the south korean president in seoul. He called on other nations to stop doing business with north korea. That theiriations next round of talks early. Discussions on revamping the north American Free trade agreement will begin in mexico city two days ahead of schedule. Last month, negotiations negotiators abandoned their deadline and said they needed until the end of march. The gunman in the texas church tooting may have been able avoid a background check. The air force failed to report the attackers 2012 Domestic Violence conviction to the fbi database. In the u. K. , British Consumers are being cautious just ahead of the crucial Christmas Shopping season. In. Retail sales fell october. At the same time, barclays to thed sales slowing weakest in more than a year at 2. 4 . Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am emma chandra. This is bluebird. Vonnie thank you for that this is bloomberg. Vonnie thank you. Threeclaring victory over and their activist bill ackman. Preliminary results show shareholders voted to reelect all existing 10 board members, which keeps ackman off the board. Shares on the news down to 10 sub 1 . Is lisa ellis, Senior Research analyst at bernstein. A lot of work on this proxy battle. Was this a question of right ideas but the wrong strategy on the part of ackman . Lisa i think it is a good characterization. Teamikelihood of purchase winning this proxy vote was low from the beginning. Adp has been a longterm outperforming stock and company. So the bar is very high to actually vote actively to bring in dissident directors. Searching purging p did have support, but they did come into the proxy contest late and, quite and cally. Antagonisti vonnie it ackman had just said put me on the board, would more have voted him in . Lisa yes. Vonnie we are you talked about the poll in advance, that since then, you have been talking to investors. There was real interest in the ideas he had. In theeal interest ideas. Real acknowledgment of the concerns the company has raised, which are things like the retention issues and base concerns over customer defections. But at the same time, a lot of support for pershings ideas, driving more competitive challenges the company has in the market. Investors love a collaborative outcome. Vonnie is built believes his strategies are if bill believes his strategies are correct, why would he stay on . Remains this point, he a longterm believer in the potential for adp. He will continue to work shareholders, try to work management, to try to see some. F his initiatives addressed in the meantime, management has their feet to the fire. They have to now deliver over the next several quarters, otherwise, he will get more support. Vonnie exactly. I believe he is planning to continue on with his activism and, next year, also run again. I want to ask you about the margins. One of them main complaints is they were not being transparent about margins. Is that a fair thing to complain about management for . If not, why are they being so opaque about it . Lisa it is probably fair pay the company could be giving some incremental disclosure around the differences in margins. Maybe the bigger point is they could be taking a stronger perspective on the longterm goal. Like what the longterm objective is. Is it close to what ackman is saying or is it not anywhere close . Vonnie ackman was on last week. We talked about the 500 basis point improvement that the ceo of adp wants. Ackman was saying it is not possible to pull that out of the air. I want to read a statement from Carlos Rodriguez you know, it was a company that was doing well. Share price was climbing higher. But is there a danger that bill is right and, in certain parts of the business, new were companies will eat its lunch . Absolutely. The enterprise segment is a weak spot for adp, where they are competing with ultimate software, workday coming down. Adps current Product Offering is lagging in that segment. Vonnie some large investors were extra to merely angry at bill ackman. They thought he was putting the board through a proxy fight that is unnecessary and expensive. Is it wrong . Is it necessary for the company to wake up . The i am not a believer of burning platform, so i tend to agree with the large shareholders, who say there is validity to pushing the Management Team to address these not into aer, but fairly antagonistic proxy fight. Vonnie we are seeing a tiny lift off in the stock, but not much. Week. E had earnings last lisa earnings are soso. Adp beforelish on this. The reality is we probably will see a positive adp is a clean beneficiary of tax reform. One of the big reasons we have been bullish on them for a long time. So we currently encourage investors to stay along with this one, on the basis of tax reform, while we wait out the next step of pershings involvement. You joinisa, we hope us again soon. That is lisa ellis, Senior Research analyst at bernstein. Mark fantastic interview. Ining up, dissent heating up frankfurt. Some members are not on board with the ecbs qe vision. Live from london, i am mark barton. Vonnie from new york, i am vonnie quinn. Time for our stocks of the hour. Itsn reduced released timeline for next quarter. Joining us is taylor riggs. It is not william shatner. About theu talked adjusted earnings per share next quarter. Management saying up to 14 a share going into this going into this call, analysts the estimates. Of i spoke to some bmi analysts. They are saying they are seeing it a slowdown in hotels. Some of that is being offset by growth in vacation rentals. Boost growth, the company is coming out and saying they will really invest in their own brand marketing, specifically with booking. Com. The ceo saying they were increasing booking. Com advertising, specifically 30 countries will air tv commercials, rather than the 12 right now. The ceo also says they will aggressively expand nonhotel accommodations. That is probably to increase their opposition with airbnb. That does create higher costs, pressuring the margins in the profit forecast. Mark what about competitors like expedia, chicago, trip advisor . Less . Riceline spend trivago and trip advisor shares down a little. Priceline says they will go back marketing. N expedia is a more direct competitor. Pricelines growth was not that , so they are not gaining at the expense of expedia. The ceo also saying he does not see a secular challenge in the Online Travel industry. So perhaps more of a mixed bag. William shatner has not had an ad with them since 2012, but we still associate him with them. Mark shares of Valeant Pharmaceuticals are rising. Earningsaintained its after sales of a gastrointestinal drug rose. Bmw has lost ground to global luxury car leader mercedesbenz. Profits from carmaking now trail mercedes, and the company reduced its outlook for fouryear revenue. At is trying to make money the same time it develops technology. Apple pay is enrolling tens of usands of new users walmart pay is enrolling tens of thousands of new users. Estimates are walmart pay will pay by the end of next year. The ecb policy consensus is wavering in a bloombergs group. 26 ecb canceled its october meeting. At least for then heavyweights spoke. In an interview with bloomberg memberion, and ecb board confirm she was part of the dissent. I made my position clear in october. I would have liked see a clear exit. There was a different decision made. We will see, in the next year, how things are developing. Mark while the ecb stays its course, extending qe will be hard in the future. For more, lets bring in bloombergs ecb reporter. These heavyweight dissenters, how difficult could they make it for draghi in 2018 . I mean, the main issue draghi will have to deal with is inflation. If inflation picks up, there will be no problem, no doubt that qe has to be eventually wound down to the question is how to do it. Right now, the ecb has committed noturchases if inflation is on a path to growth, just under 2 . So what is a heavyweight to do they are saying lets tie our guidance so we are not tied to the fact that we have to buy more bonds. But we can say we will remain committed to rates. This will be a debate that takes place. Mark and that debate was acknowledged, wasnt it, in a new sentence, which was announced on the day the of the ecb meeting. Alessandro the guidance on ecb did not change, but there was a compromise. The ecb said look, our accommodative stance does not only come from new qe purchases but also comes from no low , and, from maturing bonds all of our policy tools. So do not focus just on new qe purchases. Vonnie you look at mark you look at the euro today. It has drifted down since the ecb meeting a couple of weeks ago. Does that tell us the market Still Believes in a more dovish ecb Going Forward . Well, definitely their reaction to the decision in october was muted. Ecb is good at signaling where it it was going. For now, the euro is not a concern. Is extended for another nine months. So there is still quite a lot of to go on. The issue will come up probably in the summer of next year. Mark dissent within a central bank some might say this is healthy. What should we read from this dissent within the ecb . Well, as you are saying, there is a healthy discussion. This was not so much it is sent on what to do now. There is rod agreement that qe needs to be slowly wound down gradually. Because the euro economy is doing well. This is more of a discussion of how to do it, how to approach it. Pedalast the take hthe away from the accelerator. So it is a discussion that is usually the prelude of getting consensus. And the consensus among the Investment Community is when will qe come to an end . Whats the viewpoint out there right now . Alessandro right now, probably the best guest is not in any time until very late 2018 at the earliest. From januaryntinue until september. It is 30 billion euros per month. And then, from what i understand, the most likely scenario is there will be short tapering after that. If they think inflation is back on track at time. Coeure, one of the heavyweights, says he hopes that the extension decided in october will be the last one. In this case, qe may be over by the end of 2018. Of course, if there is another extension, it means inflation is still a long way off, and that will be a problem for the ecb. Speciale, ecbro reporter in print for. Vonnie still ahead, what can tax reform due for the least welloff . Can you have any kind of impact, never mind a substantial impact, to bring up wages . We are joined by the ceo of operation hope, next. This is bloomberg. Live from london and new york, i am mark barton. Vonnie i am vonnie quinn. This is bloomberg markets. As the house taxwriting committee cameras other details, tempers are flaring over provisions democrats say will squeeze the middle class. But what about the needy . We are joined by john hope. He serves as an advisor to several u. S. President s. Anderves as chairman, ceo, founder of operation hope, which focuses on the underserved. Lets begin with a taxwriting. It is meant to create jobs by the score for underprivileged and the middle class. It is meant to bring up wages. D. C. Any of that in the writing . John i think the tax code is framing incentives and penalties. It is messaging our priorities. My sense is this particular bill, while well intentioned, is really about rewarding passer owners of capitals and assets. It does not mean it is negative or bad. It means that is the focus. If you want to reward active job creation, you would do things like a tax benefit for apprenticeships. So companies have a printer ships would get a tax benefit. Those who have massive those who find a startup fund for the things we need most, jobh is for start up and growth. The deductione for mortgage interest, you are working against your goal. When you reduce the benefits for disasters, no one asked for a disaster. When you zero out the interest on student loans, or the ability to write that off, you are making life more difficult for a workingclass family. Vonnie re confusing two debates . Should a tax reform package be a whole different thing from helping the underprivileged . John no. It is the same debate. It is a question of where do jobs and real wealth, from . My expenses all Big Companies are small ones. Walmart is sam in a truck. Even this Network Today was once somebodys dream. We forget that. We are rewarding capital providers. Rewarding passive orders owners of assets. Somehow, if you give them a tax break, they will pull the money into more pool that money is notre jobs, that intuitive. If you give me a tax break, i will keep the money in my pocket, invest more in technology than people. Vonnie so youre not necessarily against some of the tax provisions, but you have other ideas. They are encased in this book called memo five rules for your economic liberation. One of the things you say you do is bring up Credit Scores. Your lifeing changes more than god, love, and moving your credit score up 120 points. Below,e 15 of america who are struggling financially. They think of their issue is it race or immigration or politics no, their issue is credit and jobs and economic sphere. The urban and Rural Communities have the same problem. They are 500 credit score neighborhoods. You have 30 seconds to tell the current administers and what you need. John your solution is at the bottom, not the top. Vonnie you made it in 10. Fantastic. [laughter] john hope bryant, thank you for joining us. Memo fivecalled rules for your economic liberation. You say it is necessary to bring up Credit Scores in order to improve the life of the underserved. Are coming up, we following stocks. Less than 35 minutes until the end of the tuesday session. 600 was upurope earlier, now trading lower. Check of the currency board. Quiet on the macroeconomic front this week. I will leave you with the bond board as we approach of the european close. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Mark we have got an exclusive interview with the chief executive. Top stories were covering from bloomberg and around the world and that a big surround is an increasing pressure. We have built in it exclusive interview with the socgen chief executive. We will talk with the recently conferred under secretary of the treasury department. Chipmakershat are saying about broadcasters massive bid for qualcomm . We have massive interview coming up. We haven