The fight for tax reform is heating up on capitol hill and one of the chief players is standing by with david. David thank you, the constitution says revenue legislation has to start with the house of representatives, making the chairman of the house ways and Means Committee the architect of tax reform. Kevin brady of texas comes with on aday, getting to work bill that has been approved. You said you believe you have the votes to get them as early as thursday for the full house to approve the bill, but that is not the only boat because after this goes to the senate, it has to go to conference, and go back to the house again. Lets talk about this state and local Tax Deduction. If it comes back, where it has no state and local taxes, can you get the votes in the house again . Representative brady it will not come back that way, i made a commitment to our members and the house that he will restore the state and local tax reduction up to twice the national average. I think families across the country are especially important and i have made that commitment that the final vote on the final build to the house will include the state and local property house reduction. David as you know, the senate has rules to comply with. One of the ways in terms of how big a deficit they had or how long is to eliminate that socalled assault deduction. Assault deduction salt deduction. What if you do not get tax reform at all . Rep. Brady look, i am confident the senate knows the priorities of the house. I certainly do, so that commitment to keep the property concrete. Ion is in i fully expect that to be the case. David to drive it home, that is a redline you will not cross . Rep. Brady it is. David thank you. Lets talk about other things you might do to help the senate. What might you consider for them roles . Within their for example, would you consider something above a 20 Corporate Tax rate . Rep. Brady right now, we will let the process go forward. I appreciate you starting out with this is not the final vote in the house. The senate has their work to do and will come together on a conference committee. This helps improve the legislation. We are going bold, both in becoming competitive around the world and in how we stumbled by the tax code. None of that is easy. At every step, including the senate and the final conference, really critical. I am not prejudging a lot of things at this point. Only that we now, because we work with the president and with the house and Senate Earlier on one tax reform approach, we are both driving that direction. David i appreciate the fact that there has to be compromise on both sides. But it sounds like the 20 number is not in concrete the way this reduction is. What about it is becoming effective in 2018 versus 2019, is that concrete . Rep. Brady 20 is where both the house and senate are focused , certainly the president is, as well. Here is why. We need to be competitive at home and abroad. That rate lays a key role. We are also redesigning the International System so our companies can compete and win anywhere, including at home. The sooner we get that, those rates and redesigning them, the better for our u. S. Jobs. You focused on as much growth early on, becoming competitive. David i want to talk about growth, but before that, lets talk about this bird rule on the senate side and not the house side, im sure you are happy. Rep. Brady thank the lord. David this goes past the 10 year part and says you about deficit passed the tenure part. To comply with that, are you willing to come are you willing to compromise at the tax cuts stopping at some point during the 10 years . Rep. Brady on the byrd amendment, what happens in the second decades, they will work on that to bring the bill out of the chamber, so lets look at the approach they are taking and then we worked at the run the conference side. House perspective, it is critical to take this momentum we had today, deliver a strong vote at the end of the week, make sure the senate knows when they pass the bill, we have to pass it to the president s desk. David you are perspective of butbird rule byrd rule, at the same time, if you are going to get growth, how much certainty do you have to have the tax code and how do you balance those issues . On one hand , you can save money by making it less certain. On the other hand, it is harder for businesses to plan. Rep. Brady exactly right. There is a balance between the byrd rules, then usual budget rules the senate combines in that permanence and i have long said that you get the greatest growth for the greatest number jobsars with permanent can come back to United States, businesses and families can invest, so we will go for the greatest amount of permanence we can get in the rules we have to comply with harry david i want to talk about Small Business comply with. David i want to talk about Small Business. They have said they can support your proposal no. What are you your proposal now. Order the biggest differences between the house and senate and how you deal with the past rules and how they affect Small Business . Rep. Brady the good news is there is Common Ground between the house and senate very we put together a design that, first, gets a 40 tax cut to the first 75,000, main street businesses, whether the local dr. Donut shop. Secondly, we allow businesses to choose the best approach in simple form, a 7030 split to provide relief, or they are capital intensive companies, they can get more of their business income of that lower 25 rate. The senate takes a different approach, a deduction up front for businesses and then they plow their tax relief on to the individual side, where most pay their taxes. There are different approaches. At the end of the day, im confident we will have a strong progrowth bill, not just for corporations but Small Businesses and pastors. David you have mentioned growth several times. The president has said this is about growth, you say it is about growth. What kind of growth projections are you saying if you get your version of tax reform . Rep. Brady it varies. Growth, some see gdp. 5 for to three today the next two or four years, and then settling in. Here is what we all know, we will not be stuck with the 1. 8 growth model that most economists see over the next decade. So we are going in on growth on the business and family side havese the American People to have stronger growth than what we have today. David how confident are you in those projections . That is the underpinning of the tax reform package. How confident are you . Rep. Brady heres the good news, we know it is proven. We sought in the reagan reforms and john f. Kennedy tax cuts. We saw local economies really take off. More portly, we know our business is compete more importantly, our businesses compete worldwide. Businesses make them competitive in the big way and that is a big growth factor. And then riding off of that Capital Investment in plants, equipments, software, technology, big growth driver, as well. I am very confident about the growth. David if you are confident in growth rejection, would you consider legislation that says if we do not get that growth, we will revisit tax cuts because we do not get what we thought we had . Rep. Brady im confident we will get the growth. Reasonway, if for some it does not happen, i know it well, i would go deeper into making this more progrowth. I will tell you now that the 20 rate is the lowest in u. S. History. The lowest to pass in modern history. The redesign number code makes leapfrogs and so i think there is going to be very strong economic growth. We are going to break out of this stronghold in the past decade. David some people talk of politics as something not to deal with but that is how we come together in a democracy. Lets talk about the politics. There is an election next november. You will be up for election and other members of the house. Give me the sense of the political consequences if you do not get tax reform through. What do you anticipate . Rep. Brady i will tell you this , republicans that i work with on this, the president , as well, this is not about us. This is about the American People. Seenare they have not paychecks increase in a decade. Our Business Investment has stalled out in some ways for years. We have got to get the economy going to give people hope. That is what drives. Clinically, that will take care of itself. We deliver on a progrowth, tax form package, politics will handle itself. David 4 of kevin brady, thank you. Shery ahn . Representative kevin brady, thank you. Interview, lets check on first word news with Mark Crumpton. At todays House Judiciary Committee hearing, Jeff Sessions maintained he was unaware of brush and contacts with Donald Trumps president ial campaign. Democratic congressman jerry nadler pressed sessions on report he rebuked George Papadopoulos for suggesting a meeting with the trump team and russian president Vladimir Putin. He made some comment to that effect, as i remember, after having read it. My answer yes and no, i do not have time. There are reports to shut george down when he proposed that meeting with putin. Is this correct . Yes. I pushed back, i will say it that way yes . Mark attorney general sessions insist his story has never changed. In u. K. , a warning from russia to Prime Minister theresa may. She told Vladimir Putin that britain will retaliate against meddling in elections saying we know what you are doing and you will not succeed. Iran says the death toll from sundays earthquake is that ive hundred 30, at 530. The iranian president says his administration will probe the cause of so much damage to the buildings constructed under a state owned program, along with the border with iraq. In spain, the Prime Minister says the n crisis the Catalan Government has the tools to defend itself, calling it a warning to proindependence parties running in n elections catalan elections next month. Even if they win majority, they know the state can limit their powers. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Sherry thank you. Coming up, we catch up with republican representative Chris Stewart of utah. His thoughts on attorney general Jeff Sessions and his face up with the House Judiciary Committee over russias involvement in u. S. Elections. This is bloomberg. Sherry welcome back. This is Bloomberg Markets. I am shery ahn. David i am david westin. A third day of losses. Taylor riggs has the latest. Taylor we are coming off the lowest of the session, but kind of a broad base selloff, not sure what is going on. Our Producer Price index came in hotter than expected, maybe that is raising concerns that the fed may raise rates higher than expected. Done . Reform going to get markets are waiting to see if that happens, so a lot going on as we dig into numbers. 665 six, still talking about ge, having its worst twoday decline since 2009. As you can see in the white line, we charted ge relative to the s p 500, in blue, outperforming by five percentage points, relative to the industrial sector and orange. Ge still taking a heads and , and it seems investors are not quite happy with what they heard yesterday. ,eceipt autoparts rallying after the Third Quarter results showed signs of progress for company, trying to revise their business after being hit by online competition and unfavorable weather. Advanced auto parts is up as much as 25 this morning, pushing it a bucket ski 100 day moving average, a bullish signal for the stock. I will rapid appear, g btv 9188, charting the difference between the twoyear treasury and 10 year treasury yield. We are now down below that 70 basis point mark. We hit it a few times last week, but otherwise, you have to go back 10 years until 2008 to see these spreads this flat. All eyes on that yield curve. Sherry taylor riggs, thank you. U. S. Attorney general Jeff Sessions is facing questions before the house judiciary lied ore, denying he misled congress about contact with russia by people involved in Donald Trumps president ial campaign. Joining us from capitol hill to discuss is Chris Stewart of utah. They have been conducting the Trump Campaign and russia probe. Congressman, thank you for joining us. The house until Community Committee has been focused originally on the russian meddling issue, but it seems to have branched 10year directions. How far along branched 10 new directions. Half are a lot of are you in the investigation and how much further will it expand . Stewards on the core question, did russia interfere . Clearly, they did and how do we stop that from happening in the future and on those questions, i think we are well into the process and your conclusion. There are other elements from our original investigation i think many of us want answers to and that may take more time. David are you confident that the attorney general sessions is doing all he can do to assess the degree of damage and remedy it and make sure it doesnt happen again . That was just asked by the judiciary committee. Rep. Stewart on those questions, do we understand the damage . Do we know the remedy to stop it again . I do believe the attorney general has done everything we could ask. That is the primary question for the American People. At the end of today, we have to look at future elections and not feel they have been manipulated or will be manipulated by a foreign government. Once again, there are other things we are concerned about. Questions regarding someone asking, were all the officials honest with us for the committee . Ways, i think,me trying to protect the Current Administration . Those are the things we want to dive down to get more answers. Sherry attorney general sessions also saying he now recalls dissipating in that meeting with george happened up less George Papadopoulos. How does that complicate efforts are your party to move past the pressure issue . What,tewart you know when people listen to attorney general sessions, when you see him before the senate and his testimony today, i think it honest person has to look at him and say he is being sincere. He clearly was not trying to deceive. He was answering a series of questions about incidents that happened before. I believe he thought he was answering that question put to him in the Senate Committee to fully and rephrasing the question slightly, you might have a different answer, and under rephrasing the question, he has given a different response. Trying tohink he was be deceitful. I do not think it is true and it would not have helped anyway. David how did we get to this place . I think the American People say, i do not understand how we got to a place where the russians had so many activities going on to try to interfere with the election. This is under a democratic president s, president obama, though president Trumps Campaign that tainted with it. If legislation that can help it . Rep. Stewart that once again is a great question. I was in moscow last summer, and when i came home, i did numerous interview saying russia will mess with our elections. Theres no question it would. We knew it based on what they did in europe and intelligence we have monitored. People would ask, do they want one candidate or the other . They really do not, they went to break down institutions, faith, and democracy, and they have done. It is the most unfortunate outcome. Most of americans have the view that russia interfered and in some cases, helped elect one candidate over another. That is distractive for our political body and for the American People and these institutions. That is the thing we have to be able to correct and push back on. By the way, they are still doing it. Look at what they are doing it Eastern Europe and poland. The social media, the bots they have deployed, the social narrative it is so invasive and wears people down. Sherry there have been complaints by democrats that gop members of your committee have been thwarting the Russian Investigation by refusing to issue an enforce subpoenas for documents. How do you respond . Rep. Stewart it is nuts. Simply untrue. Look, there are some of my democratic colleagues who would love for this issue to be carried on into the next election in the 2018 midterms. I think we owned the American People in response as quickly as possible. That does not mean we went to brush things aside, or asked appropriate questions. Of course we do. For them to say we are trying to dodge or stall this or not be willing to subpoena or ask questions is simply not true. David republican representative Chris Stewart of utah, thank you for joining us. Still ahead, we will dive deeper into tax reform and talk to Henrietta Treyz. Live from new york, this is bloomberg. This is Bloomberg Markets, balance of power. I am david westin. Sherry i shery ahn. We are seeing another day of losses, but third day of four with losses for the dow and s p 500, now. 4, the lowest level since october. We are seeing telecom leading the declines on the dow. It has been difficult after rallying to record highs. The dollar is falling to the lowest level in more than two weeks. The 10 year yields headed for the first drop in five days, while wti is down more than 1. 5 . It is a down market across the board. A little bit of a risk off sentiment across the markets. David next, we turn to washington to talk about Economic Policy with Henrietta Treyz. This is bloomberg. Shery this is Bloomberg Markets balance of power. Shery ahn. David im david westin. Shery president rouhani his way home from his asian trip expected to address house lawmakers on thursday. President trump on his way trip, expect asian to address house lawmakers thursday. We are joined by Henrietta Treyz , joining us from washington. Its always great to have you with us. The senate is struggling with avoiding longterm deficits. The house doesnt have that problem, but it wont have that problem once against abroad gets to congress. How many painful sacrifices will have to make . Ms. Treyz they need to make a lot more painful sacrifices. Even just in the first year of the budget window in 2028, there are at least 200 billion short of making the bird rule compliant. Hear themthings i from Senate Republican leadership staff that they are looking at as ways to fill this hole. You probably wont see them inserted into the legislation for a couple more weeks, towards middecember, no earlier than around the 15th of december. We are looking at things like revealing the individual mandate which generates 338 billion. Another alternative is to further phase in the Corporate Tax cuts, so instead of going to delay that, they can another year or two and save a couple hundred billion dollars as well. There is also the proposal that they could be looking at in the future to repeal or at least make temporary some of the individual tax cuts. They have been trying to dig in with staff and understand exactly what theyre looking at. Its politically complicated to pass permanent tax cuts for corporations and only temporary tax cuts for individuals. The way republicans seem to be looking at this dynamic is once you get into 2025, 2027, 20 28, you could be looking at a scenario where democrats will be more comfortable allowing Corporate Tax cuts to expire in the future and see those rates rise back to the 30 range. But repealing or allowing individual tax cuts to fully expire and go back to current rates would be very unpalatable. Is a tricky political populist, but it appears to me, based on morning,sations this its more palatable to make the individual tax cuts temporary and make permanent tax cuts apply to corporate entities. That could save you as much as 500 billion dollars or more in the future and help you override the verbal. David wilbur ross, secretary of commerce speaking in washington, he is saying tax reform doesnt necessarily have to affect the dollar at all, which is a little surprising. The dollar has been trading on prospect of tax reform. As they have gone up, it has gone up. Mrs. Gone down, it has gone down. All the things republicans say should affect the dollar. Just tojustice take this in a slightly different direction, i was with the trade counsel in one of the things that would have made far greater impact in the dollar is if the president decided to pull out of nafta. That is definitely a prospect that both democratic and republican staff and Houston Senate house and senate side are concerned about. He extended conversations over nafta into march, but it is widely expected amongst trade circles and on capitol hill that staff on both sides of the aisle that the president is really looking to shake things up with regards to nafta. While the dollar may be impacted by the Corporate Tax code in the individual tax code changes they are looking at, i would say trade will be more impacted jury impacted. Shery wilbur ross saying enormously complex to finish nafta more or less by march. What is the sense you are getting that we could see those Corporate Tax cuts being delayed . Also, which of the senate or house bills to they prefer . Ms. Treyz interesting question. There pieces here and there that they would prefer between the house and senate bills. The most intriguing component is that investors are perfectly fine with a more deliberate approach to reducing the Corporate Tax rate to 20 . They dont hold the same ideals of getting to 20 the way the president will Freedom Caucus does, or secretary mnuchin. They are happy with a rate thats below 25 and most senators and congressmen are happy with the rate of below 25 as well. If it requires a phase in of two or more years, that is perfectly acceptable to the investment community. I was a that one big differential is that the multinational community, who was on the hook for a whole bunch of revenue, including repatriation tax, changes to the net interested auction, they are all going to be taxed immediately beginning on january 1 of 2018. Ofy dont like the idea having to take congresss word for it that they will get to the 20 rate in the future. They prefer that happen immediately. The investment community, even just for a couple of years, the multinational and Domestic Corporate space could be comfortable understanding the complexities of Senate Procedures and the verbal is making the implementation of the lower rates take a little bit of time, especially if the tradeoff is they can have the tax cuts be permanent. I want to talk about state and local taxes. We just talked with kevin brady from the ways and Means Committee 25 minutes ago and i was surprised, because he said there was an absolute redline set in concrete that the house of representatives will never go along with the tax package that does not include the provision for 10,000 real estate. I heard the senate was in the drivers seat. Does the congress and really mean it when he says he will not do it . Interview i saw your and that was great. Im glad you pressed him on it. I suspect his tone will change. The senators are not interested in having a conversation about reinstituting even the 10,000 property Tax Deduction included in the house bill. You can hear it right from them. The chairman of the Senate FinanceCommittee Said the house tax bill we just on have the same problem. We dont have new york or california delegation in the senate and its 1. 2 trillion. While i appreciate chairman brady is trying to appease his caucus in advance of this vote on thursday, i titled the latest report roll side for reason. I think castro publicans are going to get rolled and theres not much they can do. Shery were paying i think House Republicans are going to get rolled and theres not much they can do. Shery were going to be paying close attention. Henrietta treyz from washington, thank you. David Mark Crumpton has more on the bloomberg first word news. Lawmakersian submitted legal amendments today that would allow the government to Register InternationalMedia Outlets as Foreign Agents. Towardsetaliatory move the demand the u. S. Major russian tv channel. Russian statefunded r. G. Registered with the uns Justice Department and the Foreign Agent following pressure from washington. At a press conference in moscow, russian president Vladimir Putin said attacking her media in the United States is an attack on freedom of speech without any doubt. As peopleappointed say in such cases, but of course, russia will respond. It cant be otherwise. Russian officials and lawmakers emphasize they take a measured approach, one proportionate to the u. S. Action. Scottish first minister Nicola Sturgeon instead us that she and british Prime Minister theresa may have not reached agreement on the brexit withdrawal bill. Speaking after talks with the Prime Minister at number 10 downing street, she said the bill would have to in her words, change substantially before she would be able to recommend approval. A lawyer for some relatives of Newtown SchoolMassacre Victims have asked the Connecticut Supreme Court to reinstate a lawsuit against gun maker remington arms, saying the rifle made by the company and used in that shooting was too dangerous to sell to the public. The decision isnt expected for several months. 20 children six educators were killed in that 2012 shooting. The United Nations and its humanitarian partners are alarmed at the worst situation in yemen following the temporary closure of land, sea, and air borders on november 6. The conflict which began in march of 2015 has produced the Worlds Largest unitarian prices with 21 Million People affected. 2 million internally displaced refugees are80,000 all struggling to survive increasingly prolonged displacement. Mark the World Health Organization announced a rise in suspected cases of diphtheria in the region. 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. Shery headlines crossing out from u. S. Commerce secretary wilbur ross, speaking at an event in washington. He is talking about nafta, saying some kind of nafta draft will land on President Trumps desk. He says no deal is better than a bad one and he is also said that its enormously complex to finish nafta, more or less by march. We have the fifth round of nafta negotiations happening in mexico city this week. We are seeing the Mexican Peso Holding steady unable to rise despite the fall of the dollar to a twoweek low. Be hard to going to get it done by march, they originally said it was be done by december. Coming up, at t is readying for battle against the Justice Department. Well tell you why, next. Live from new york, this is bloomberg. David this is Bloomberg Markets balance of power. Im david westin. Shery im shery ahn. The stock of the outer is dicks sporting goods, after the forecast of a 20 incline earnings last year, its down 5 . Emma chandra has the latest. Emma they had thirdquarter results that came out and they saw to raise their guidance for this year, but that was after reduced guidance earlier. Investors are focusing on the guidance they have given for next year. For the year that ended january 2019. Theyre forecasting a decline as much as 20 . The company says this is down to some significant investments, including ecommerce, store technology, payroll, supporting a private brand. Its also to do with comparative sales, being essentially flat and they face real pressure when it comes to margins. We have a chart that shows you that over the last few years, they have fallen from 31 down to 28 . That fall down to doing a lot of promotional activity, they are having to cut prices in order to compete, because everybody is cutting prices. Theres a really nice column by our Bloomberg Gabbard gadfly columnist, she says they are really eager to doing this. She was getting emails about black friday discounts and she says they are almost too eager to be cutting prices, nothing to be worrying for the company. David usually when you are cutting prices, theres a reason for that. You think immediately about who are the suppliers and how are they being affected . Emma two of their key vendors are nike yen under armour. Last year, nike accounted for 20 of their purchases and under armour about 12 . What we are seeing with those companies is they are trying to diversify where they are selling and who they are selling through. Nike has set up a new relationship with amazon and under armour has been working both companiesd are also trying to drive more people to their own websites by offering exclusive products and is another concern for someone like dicks sporting goods. Shery emma chandra, thank you. David at t is rated take on the white house. Its ready to probe the trump administrations role in any their moves. Ock jennifer reed, welcome to the program. Its good to have a pro. How remarkable is this that we are having this relatively public display to the Justice Department and to people who want to get together in a merger . We feel like we know every blow. Jennifer its really unusual. His yearlong investigations are completely confidential. None of them are made to be public, and they can make it public if they choose to, but they generally dont. What the Justice Department wants in these negotiations, its very strange. If at t asks for these documents and digs into the communications, what can the government actually do . Benifer there may privileges the government can assert to keep them from getting that kind of information. ,ossibly executive privilege its a murky area and im no expert, but it certainly could be asserted and might be accepted or attorneyclient privilege or product privilege, these are privileges between attorneys and clients if you think of the president and the department of justice being attorneyclient or materials put together an anticipation of legislation, it might be hard to get internal materials out there is evidence on the record in a trial. Goes thats assuming it to court. The Justice Department would have to file a lawsuit, which is a big step and i dont remember the last on the Justice Department went after a vertical merger as opposed to a horizontal merger between direct competitors. What is the chances of success . Ofnifer the track record article deals, very few are challenged to begin with and most of the ones that are a consent results in order. There are very few in the last 40 years that have actually been blocked writer challenged. I think for many reasons, the parties have a very good shot here. Theres a lot of uncertainties when you going to trial, and particularly, what the documents will say matters and what economists have done will matter. They have a better shot than the parties have had in the last few years for horizontal deal of the department of justice or ftc has been challenged in court. Shery what was the compromise look like and what could they be asking, conditions they could be asking for allowing this merger to go through . Jennifer thats exactly the problem and why people think it should go to legislate litigation, because it doesnt look clear what the concessions would be. They would agree to conditions on the way to conduct themselves post merger and it looks like the department of justice is unwilling to accept that, that they want to thank structural. Assets need to be sold. Either directv or turner broadcasting. It seems like theyve drawn a line in the sand and it looks like the parties are not willing to do that. David thats what happened with comcast nbc universal. They promised not to do certain things and reports are that this new system new assistant attorney general does not like behavior remedies. What are the chances he would go to court and the court says ok, fine, its going to be behavioral and not structural. Jennifer that could absolutely happen. Sometimes the court which is very hard, agree to a settlement now and lets just get this out of your and settle in and never finish up because they read the tea leaves and see how its going in the end up doing Something Like that. Shery how link because the whole process be . How lengthy good the whole process be . Jennifer they could be four to six months, if not more. Ie, great tofer r have you here. Shery gop leaders threatening to expel roy moore if he wins. The latest on the controversy. This is bloomberg. Shery welcome back. This is Bloomberg Markets balance of power. Im shery ahn. Westin. m david Republican Leaders are escalating efforts to force roy moore out of the senate race. Speaker ryan addressed the controversy earlier today. Speaker ryan he should step aside. These allegations are credible and if he cares about the values and the people he claims to care about, he should step aside. David that echoes Senate Majority leader Mitch Mcconnells statement yesterday in which he called for moore to step aside. Again, give us a sense of how it is playing in alabama. Theres another accuser who came out yesterday and we have increasingly Republican Leadership for him to step down. Is that having an effect on the people in alabama . People are still reacting the same way, as these allegations come out, it is why is it coming out 30 or 40 years later, why did not come out when he was running for governor or the supreme court. We are still seeing more core basic with him. And a quinnipiac poll contradictory earlier polls, showing him 10 points ahead, where that two polls over the weekend showed that jones either title ahead. Or ahead. People are still addressing digesting these acquisitions. Women could be doing interviews and speaking publicly. It still seems like that core Republican Base is going to stick with him. Said President Trump is to plan a strategy for roy moore after returning from asia. What could be is often fear his options here . Nothing, orld do way in for an option for writein candidate. He could talk to alabama Republican Leaders to try to get them to withdraw their nomination of roy moore for the race. Its not clear what exactly wants to do and how aggressively he wants to do that. Hesaw when he was a major said if these allegations are true, i would like him to step aside. And the National Republican party will become more aggressively more aggressive on that. Saying we believe these women used to step aside now. David this is a seat that was vacated when Jeff Sessions became attorney general and is a story that just across the bloomberg that the Senate Majority leader Mitch Mcconnell is discussing the idea of having attorney general sessions appointed to fill the seat if in fact roy moore gets the election and that is kicked out by his colleagues in the senate. Is there any movement inside alabama to bring sessions back either this way or through writing campaign . If National Republicans are seen as trying to overrule alabama republican voters, that will not go over well. My understanding is that if roger moore wins in the alabama looking party withdraws his nomination of him, the state would have to start over. There would be a new election with a new primary it would probably get pushed down to november 20th. Meanwhile, the senator would remain in that state. E moorewhat is judged say . Arit he is not going to quit. This is someone who was told take on your 10 commandments statue and he lost his job over it. He was told issue samesex marriage licenses and he said no. I think that he has been saying that i dont know these women, i dont know where this restaurant is in regards to the allegations yesterday. He is steadfast that this is a democratic plot to overthrow this election and he is not going to take it. David as far as you can tell in alabama, is the state Republican Leadership sticking with him . Arit the state Republican Party has been very quiet on this entire race. We have seen the Party Chairman from different counties saying they are still with him and they dont believe the accusations. I spoke with the chairwoman for Jefferson County republican the timing issaid suspicious, i trust him and im sticking with him and thats from a feeble republican. Its hard to say with the National Party is going to do. David a love for you to cover. Thank you to so much for bloombergs arit john. Shery coming up on Bloomberg Markets, we are speaking with lanhee chen and former policy director for mitt romneys 2012 president ial campaign. David you didnt catch all of our injury is the bloomberg with the function tv. You can find breaking news, charts, and related functionality. Scarlett it is 7 00 p. M. In london, and scarlet fu. Avilan timeout yeldon little Abigail Abigail doolittle. Welcome to Bloomberg Markets. Scarlet were live in bloomberg headquarters. Here the top stories we are andring from the bloomberg around the world. Jeff sessions faces congressional scrutiny about his contact with russia during the president ial campaign. What it means for the white house agenda. Venezuela and its state oil company now officially in default. Why that changes nothing for bondholders. Plus, home depot seeing a surge in sales in the wake of this years hurricanes, while taking a hit on storm related expenses. U. S. Markets close in about two hours time and taylor riggs is here with us to get a check on where stocks are trading for the pullback. Taylor broadbased declines, and we were down almost double this comment one points. Slowly starting to erase some of those losses come as you can see