Should be conditional. It is a matter of policy itself. Alix and in the zimbabwe, the military seizes power and detains 92yearold president Robert Mugabe in the struggle over the succession of the only leader the african nation has ever known. It is all straight ahead on bloomberg best. Alix hello and welcome. I am alix steel. This is bloomberg best. Your weekly review of the most important Business News, analysis, and interviews from around the world. We began the week the President Donald Trump wrapping up his tour in asia during his 12 day trip. He demanded the foreign leaders help narrow the u. S. Trade deficits while advocating his America First policies. President trump a month ago said he was not going to participate in the tpp, and over the weekend, 11 other countries that are in the tpp or were in the tpp say they are planning to go forward with some modified version of it. So, President Trump came and talked tough on it, talked about shifting back to bilateral relations between the u. S. And individual countries, and look, there are some stats that support why the u. S. May be in a better position than other countries to pursue that. But essentially, if you look at trade as part of the geopolitical strategy for the u. S. To play a leadership role in asia and counter or check chinas role, this was not an obvious win for the president this weekend. You have countries Going Forward with their efforts to do their own tpp without the u. S. In it or maybe pressure the u. S. Back into it. It sounds a lot like the way Climate Change worked out with paris. You have president xi jinping of china saying, President Trump may think that trade deals should be bilateral, but i think globalization is here to stay and that is what we should embrace. David why did the president go to the philippines . As i recall, he was not going to stop there, but he decided to go. What was his goal, and did he achieve it . Guest the president heard that the east asia summit which is going on and which is going to conclude tomorrow was the most important of the meetings that would be taking place in manila. And he had heard that, from a number of different people, that that was a very importantly that was a far important meeting for him to attend, and have the u. S. There because the u. S. Has previously attended such meetings. When he heard there was some pushback to the idea that he would not be in manila, he decided in an improvisational way to do the meeting. There was also some pushback against the idea of meeting and spending time with the president of the philippines, duterte, given his human rights record. It does not seem the president really pushed him on that during their meeting. But that was another reason why a number of people were reluctant to the president to spend a lot of time in the philippines, given the things that duterte has said about the u. S. Government. This stock right now is plunging, right around the time of the financial crisis. Early in the premarket, up 2 . What happened during the day that investors are reacting so bearishly to what has been announced . You know, it is interesting. There was a lot of bad news today. The dividend was cut. Next years forecast was cut. And there was a lot of very frank talk about the challenges they are facing in a number of markets. But i think what you are seeing in the stock is not so much the bad news that was announced today, but what was not announced today. I think investors wanted more changes. Some of these problems have become clear over the past few weeks or few months, and investors really want something big, some big changes that are going to get ge back on track soon. And part of the changes ge is telegraphing, is they are going to focus on aviation, health care, and power. Karen, are these the right three businesses . What is the linkage between them . Karen that is the question. There is not really linkage at all. When the businesses are good, they are fairly profitable. Power is a mess, but they have a lot of work to do there. They will say the digital tie, but there really isnt. Jonathan the worlds most powerful central bankers descend on frankfurt. They discussed the future of Monetary Policy. The debate on communication had officials in agreement on the use of Forward Guidance as a tool of Monetary Policy. Here is some of what they had to say. We also cannot formulate and a framework where the various parts of this Forward Guidance, the Interest Rates on one side and the asset purchases on the other, would interact in a synergy. For us, really almost all guidance should be conditional, and related to the outlook for the economy. To a much richer instrument. Inflation expectations are formed, not only by forwardlooking ways, but also backward looking ways. But in the end, it is a bit of a rounding error. It is more than a rounding error. Relative to agents in the economy. Households and businesses. It is a matter of policy itself. Jonathan joining us from frankfurt is matt miller, from bloomberg. Matt, it is a fascinating conversation. When you put these guys on the same stage together, we will all be listening. What have we learned and how we can apply it to Monetary Policy and how it may or may not evolve in the next coming years . Matt we have had job growing, but Forward Guidance is supposed to be more transparency, more solid delivery of a message for the economy, and to a number of different audiences. We are focusing on zimbabwe, trying to figure out what we should do next because the president is set to be ready to step down after being in power for almost 40 years. The fallout is quite significant, and will continue to be a very significant one in the coming weeks. How significant is it as it is now and not one year ago or two years ago . Certainly, if you think about it, it is an interesting thing as you are heading towards the elections next year. It is an interesting one. President mugabe, he has just fired his Vice President , Emmerson Mnangagwa who a lot of people are saying could have taken the presidency from robert look at the end is seen as a leader. Of course, not so long ago when he did fire the Vice President , that was seen as a way for mugabes wife to step in as a party leader for the Political Party zanu pf. That would then take power of the nation as well. So it is quite an interesting one and interesting play. How long this whole scenario may play out is going to be an interesting one, however, there are people commenting saying that it is a slow coup. While military supporters are saying that it is not a coup, instead it is a bloodless correction of the past. Jonathan Deutsche Bank is the bank attempted to turn things around. According to a person familiar with the matter, a stake has been held by Morgan Stanley on Deutsche Bank. Shares are up on the news. Talk to me now about the composition of the investors face right now, and how it may be changing . Yeah. By the way, they just confirmed in a release a few minutes ago, and it is a big change. It is the first time a private Equity Company owns a big stake in Deutsche Bank. One investor i just talked to said it is revolutionary for the bank. Obviously, the question is now, what does cerberus want from Deutsche Bank with its investment in the bank, and we will be working to figure it out over the next few days. I am here in the senate now, a heavy security presence of President Trump departs his meeting with Senate Majority leader Mitch Mcconnell as well as House Speaker paul ryan. I caught up with representative cole from oklahoma after the meeting. I have spoken with several sources who are familiar with the meeting at the president had with republicans. They said it was largely a rallying troops kind of meeting. Trying to get everyone on the same page. Look, this is expected to pass within the next hour and a half, out of the house of representatives, clearing the way for the senate. I am told that vote will come as early as the week after the thanksgiving break. The bill is passed without objection, the motion to reconsider is laid on the table. David there you have it. That is the official declaration that the bill has passed the house of representatives. Not a surprise, but historic. We have a long road ahead of us. This is a very, very big milestone in that long road. We have a long road ahead of us and we have a timeline to get this done by the end of the year. We have the Senate Working on doing this right now. We are excited about going through the legislative process, going to congress, getting this done and making the bill even better. Most important, i am excited on behalf of the american people, who have been waiting to see us get this done. David the tax overhaul plan may have sailed through the house yesterday, but then the Senate Finance committee came up with a plan to come up with their own version. Democrats charge that it is all about giving tax cuts to the rich. It would be nice tonight before we go home to acknowledge that this tax cut is not for the middle class, but for the rich and the whole thing about higher wages is a good selling point but we know that companies do not give away higher wages. This bullcrap that you all throw out here, it is not right. I just it takes a lot to get me worked up like this. David that was the exchange between the democrats and republicans. The republicans have problems within their own ranks. [laughter] eric yes, they do. It is going to make the fight look like a little garden party when they get on the floor. The republicans have the senate bill full of problems. Their own party does not even like, for example the tax on businesses that ron johnson doesnt like. That is going to be really hard to solve financially for them. The Obamacare Mandate dropping that, that is upsetting Susan Collins and lisa murkowski. Then you have ron paul who does not like the idea that the tax cuts sunset for individuals, people will have to pay higher taxes halfway through this. Then the deficit itself that it creates is bothering at least three senators including jeff flake, bob corker, and jim langford, who said they dont want to raise the deficit. They can only lose three votes and that is six right there. Alix still ahead, as we review the week on bloomberg best, an exclusive interview with Philadelphia Fed president. And retailers battle it out with thirdquarter earnings as price wars take a toll. The price wars are affecting targets. What is amazing is they put up a beat quarter and we have shares plunging. Alix this is bloomberg. Alix this is bloomberg best. I am alix steel. Lets continue our global tour, starting with uber approving softbanks offer for an multibilliondollar stake, setting the stage for one of the largest private share purchases ever. The idea is that softbank, along with other investors, will put in about 1 billion in fresh capital, and then buy about 9 billion in stock from existing investors to take a substantial stake in the company. This will come along with some governance reforms at the company to decrease the influence of the exceo travis kalanick. It will give existing investors a bit more influence in that respect. Jonathan it could be the biggest tech takeover ever. Broadcom going after qualcomm with a 105 billion deal. Qualcomms board though rejects broadcoms unsolicited proposal. Guest the shares are unmoved, i think it is something the relationship between them has never been good. At the moment, it is particularly bad. Obviously, they came hostile while qualcomm themselves were in the middle of trying to do a deal with the Company Called nxp. Jonathan you mention nxp, in the semiconductor space, this is deal on top of deal on top of deal. There are like five layers of deals that go into this Broadcom Qualcomm offering. Are these guys going to get on with integrating the deals on the table . Guest that will be one of the huge challenges of this. How does qualcomm integrate both broadcom and potentially, another company like nxp . I think it is difficult for qualcomm to pull out of the nxp deal, so broadcom would essentially have to pursue both companies. It is like the russian doll of a deal. It is a deal within a deal with the deal, the russian dolls. David at t wants to buy time warner, but the word now out is the Justice Department is they have some problems with it, on antitrust grounds, and they may sue. Overnight, bloomberg is reporting that the lawyers of both Companies Say that if they are sued, they will seek discovery of everything that the white house had to say to you about the deal. Joining us now is paul sweeney, the director of north American Research for bloomberg. This is pretty tough talk saying were going to subpoena and get all the information about possible white house interference in the antitrust review . Paul yes, i think this is another round of posturing on the part of at t in response to what the department of justice has come out and said in the marketplace that they would consider blocking this transaction. So, i do not think this is a route that at t and time warner want to go down, but they recognize that their transaction is facing more scrutiny and a higher level of scrutiny than they have ever expected or the market expected. David softbank plans to invest as much as 25 billion in saudi arabia over the next three to four years, according to people familiar with the matter. It will deepen ties between the kingdom and the japanese company. 15 billion would go to the saudi megacity called neom. To take us through the deal, we welcome bloombergs Senior Editor of global business. Talk to us about this deal, and is it a coincidence that it come so soon to the crackdown by the crown prince . Guest i think what it shows is that softbank and the company are willing to make a longterm bet on the crown prince. This is an investment we are looking about over the next three to four years, and from it, it reflects the fact that softbank is willing to bet that the crown prince can transform saudi arabias economy, and maintain stability at the same time. David does saudi arabia really need the money . I mean, they have already said they will put 500 billion of their own money into it. And 25 billion, lets be clear, is a lot of money. Is this for the investment, or the endorsement, as you say . Guest good question. As you say it is interesting to note, there is a bit of recycling going on here as well . Who is one of the best investors and softbanks vision fund, saudi arabia, the saudi wealth fund, pif. So softbank, essentially is investing in saudi arabia after saudi arabia has invested in softbank. Airbus has agreed to the biggest deal in its history. The companys chief operating officer has confirmed it won a record order for 430 aircraft from Indigo Partners worth 49. 5 billion. How has the Company Managed to turn things around . It was such a dramatic loser yesterday when it came to the big body, widebody aircraft in its competition with boeing . You are absolutely right. The deal they wanted to get here so far, they have not been able to secure, that was that 380 superjumbo. Everybody expected them to bring it home on sunday, that was the opening day of the show, but it did not happen. Still, nobody quite knows why it did not happen or whether it was just delayed then today happened. That is a dramatic turnaround for the company. It is the deal that they needed badly to make a comeback. Boeing had done incredibly well, with a deal for emirates, that is the deal that airbus wanted, but it did not happen. So now, you know, airbus has had the last laugh, so good news for them. Mark elon musk unveiling the companys new electric truck called the semi. How far can they go . Let us find out . A 500 mile range. [cheers and applause] production begins 2019. If you order now, you could have your truck in two years. Guest it is important for tesla to make a case that electric vehicles are really competent, and capable in ways that you would not necessarily think. I think, you have seen heavy truck makers like daimler and even manufactures like toyota, come forward with zero emission trucks, but passed out on whether or not batteries make sense in this sort of application. I think this is an effort on the part of elon musk to really further burnish the reputation of electric vehicles. It is important for the company to sort of make its case as well that it is looking at all forms of transport, including moving its own vehicles around. Alix walmart now out. Earnings beat estimates, a one dollar per share versus estimates of . 98 a share. It also boosted its fullyear adjusted earnings view. Also, if you take into account fourthquarter comp sales, they are looking at the high end to be about 2 . They came in at 2. 7 for this last quarter, a killer number for them. I have to say, the expectations were about 100 basis points lower. Walmart is up over 1 on the news. This look likes a very solid quarter for walmart so far. Target shares plunging right now, on pace for the worst day since february, after the companys earnings report. It seems like the price war within groceries is really affecting target. The price war is certainly affecting target. They actually put up a beat and boost quarter. Yet, we had the shares plunging for the Third Quarter in a row, net income down 21 yearoveryear. Emily in china, tencent posted its strongest growth in five years. 7 years. 61 rise in quarterly revenue, and tencent is riding the success of video games and an expanding internet ad business. The earnings come after the shenzhenbased company ordered a 10 stake in snap. Guest a lot of it is through their wechat service, almost a billion users in the country, which allows them not to just advertise on the platform, but also to promote different products, including the games business, which has proven very strong for them. Alix you are watching bloomberg best. I am alix steel. Philadelphia fed president Patrick Harker has become the latest u. S. Policymaker to nod to a rate hike before the end of the year. Speaking in an interview with anna edwards and matt miller, he said that a move in 2017 is likely and penciled in. We will not see a large move in headline or core inflation, i do not believe, but we may see upticks in wage increases and continued tightness in the labor force. The precursors to inflation. I think if we see those, i would be comfortable with a december rate increase. What would make you uncomfortable with a december rate increase . I mean, if we see core pce has been so weak, and the trend has been down this year. If we dont see that wage and employment support there, would you be prone to vote against an increase in december . I would have to look at all of the data. Not just the core pce number. But if we saw the continued weakness, i have said that i have penciled it in. If we see the weakness, i would be ok with waiting a little bit. But i do not expected right now, i expect that i will be supportive of an increase in december. Matt i was just wondering about the yield curve flattening. From our view, it is pretty dramatic. We have not seen a yield curve this flat in over a decade. And it seems as if the fed continues to push up the short end with a long end trading flat. Why is the long end picking up at the same time . Well, i think there are a lot of likely suspects there. One is simply that other banks, the European Central bank, bank of japan and others, continue to be highly accommodative, and that is one of the reasons we are seeing the long end right now. I am concerned about that, which is why the pace of removal of accommodation to me has to be gradual. If it is gradual, do you think we will not see any inversion of the curve . I would like to avoid any inversion of the curve, so my goal is to remove accommodation in a way that we do not run the risk of inverting the yield curve. Alix coming up on bloomberg best, the debate over u. S. Tax reform hits a fever pitch. The commitment to keep the state and local property Tax Deduction is not concrete. We are educating the public about the tax scam. Alix imf director Christine Lagarde gives us her take on the global economy, and we visit the weeks most compelling conversations on Bloomberg Television. This is bloomberg. Alix this is bloomberg best, i am alix steele. Christine lagarde spoke linda inely to has vietnam and she gave us her key takeaway from the summit. The key takeaway from our perspective is that leaders have focused on themes such as inclusive growth. Such as innovation, to produce more productivity, such as creating jobs, adjusting through the digital economy. Those are really leading initiatives which tell me that we have advocated and we believe which certainly we have advocated and we believe we are in Good Condition in our developments around the world. Host is globalization under threat even though the chinese president as it is irreversible . Guest i do not think globalization is under threat. What is under threat and needs to be addressed, is who benefits from globalization . I think that is an area where Everybody Needs to pay more attention. Globalization, as well as the benefit of technologies and innovations must flow to all. There cannot be groups of people or regions of the world or countries which do not benefit from globalization, or who are left behind and excluded. Which is why there is focus on inclusive growth. The second point i would make is when it comes to trade which has been a big discussion in the last couple of days in the non, which is that trade needs to be updated. And by that i mean, the framework, the rulesbased mechanism in which trade is conducted because, technologies, supply chain organizations, the development of the digital economy, prevailing intellectual property protected assets, all of that is new development. And the major trade arrangements, whether they are bilateral or multilateral, they date back to quite a few years. So it is surprising that some leaders are saying that this is not fair, or would need a level playing field, or that we need to restore some order. Yes, there is a need for such an update, and i am pleased to see that some trade arrangements are really including the issue of labor. The issue of protection of the environment, the issue of protection of intellectual property. Readdressing trade with those perspectives in mind, is critically important. Haslinda there is perception that the u. S. Is pulling out of the Asia Pacific Region and we heard from President Trump yesterday saying that he is only looking at bilateral trade agreements as opposed to multilateral trade agreements. Given that most of the countries in asia bar singapore have trade arguments for the u. S. , how challenging will that be . Guest first of all, i would observe that there are some regional trade arrangements that are being negotiated with Great Success at the moment. If some countries prefer to have bilateral agreements, they can certainly do so. Hopefully, all of that would be rulesbased, within the framework of principles that have been accepted and need to be refined, improved over the course of changes in the economy, so that there can be enough integration inside of destruction and the global order. Host henry, here in the united states, financial conditions have been tightening. There are actually easing now recently. Very, very recently. What is happening now with the rates being down until recently, credit spreads being down and the dollar, the fed is an action. To date, financial conditions are easier today than when the fed started raising rates at the beginning of the cycle. So our view is that the fed will continue to raise rates. I think Economic Growth is solid, but if you look at net worth at record, i think there are things they want to do to send a signal, particularly where credit spreads are, the fear not going to leave the punch bowl at the party for too long. Host but when you look at the backup that we saw last week, yield spreads in particular, do you draw any conclusions from that . Guest i do. Highyield spreads are one of the biggest indicators that we look at. Two is that we run a implied default monitor. Before last week, it was essentially saying that the default rate on highyield was 1 ; to put that in context, in general 2016, it was 8 . So the market has gotten quite constructive. So as an asset class complacent. I think complacent is a good term. As a firm, we manage a lot of bank loans, levy loans and our Portfolio Managers have moved into other areas. If you look at europe today, highyield bonds are up less than the dollar yield. If you take a step back, it is a little bit offsides to me. Host ok. At the same time, notwithstanding the spec of dust the spike of credit spreads, privatization i would give you a more optimistic view, this environment reminds me a lot of the late 1990s. It is not like 20062007, in the late 1990s, you had a lot of investors chasing simplicity and growth and left things that had problems around them. Host the hairy stuff. Guest the hairy stuff. We are now nine years into a bull market, you have over half of the russell 2000 trading at 10 times the value. That is pretty incredible, relative to a nineyear bull market. Host it is the same thing, consumer net worth looks incredible. Guest but when you look underneath, the majority of americans have not had any real wage growth in two decades. Our mantra is really by buy complexity and sell simplicity. The one area i would say in equity market, we are really quite constructive on asia. Japan is a big market for us, and we also see, we have been calling for a return in emerging markets. We know actually think we are entering a midcycle in emerging markets. [laughter] if you snooze, you will miss it, but right now it is actually performing well. We think that will continue over the next couple of years. Implicit in what im saying is a view on the dollar, we think the bull market on the dollar has largely run its course. Host Bahrain Economic Development board member discusses how Economic Conditions could impact the country with our eric schachter. Host palette, your job running the agency is to attract investment, promote the development and difference vacation of the economy. Diversification of the country. Guest correct. Host it seems to me that cannot be easy right now, because of government finances and the recent developments in saudi arabia. Tell me about it . Guest the challenge and finances generally, the drop in oil prices has been a blessing in disguise. It has forced governments to take on policy changes and law changes that have been for the benefit i think, of attracting investments. Host that would have been previously been unpopular. Guest absolutely. I do not think we wouldve seen the opening of sectors at 100 per barrel. I think it has made my job a lot easier. We have seen at least in the ebb, the investment attraction 20142015, from 140 million 280 million in 216 2016 and we will see over 700 million in 2017. Host can Foreign Direct Investment . Guest yes, coming through the ebb. We are seeing record numbers coming into the kingdom of bahrain. I think it is due to the openness by the economy has always had and also because the government is looking to attract investors to pick up the slack about the government will leave behind. On saudi, i think it is good news. I think people look at the region and see it as a zero sum game. If the kingdom of saudi arabia grows, what will it do to the other states . We do not say that about asia. We see singapore, malaysia, hong kong, different citystates succeeding, and the success of one leads to the benefit of the other. Host 700 million of Foreign Direct Investment in 2017. What about 2018 . Guest it would be hard to much of the number but i suspect we will exceed 300 million 400 million. We managed to attract Amazon Web Services to set up a data center, what they call a region in vain. Host a hosting hub . Guest yes. A data center, or server farm. Between the middle east and africa, we saw an absence of data centers and we were encouraged by amazon, looking to set up something and we convinced them to choose us. Host billionaire investor has confirmed that he has walked away from a plan to rescue the embattled film and tv studio cofounded by harvey weinstein. He spoke exclusively to Bloomberg Tracy Alloway in abu dhabi and says he does not see a longterm future for the weinstein company. Guest i think it is on life support. The existing directors are doing the best job they can to try and put many of the disjointed pieces together, but it is quite complicated. I doubt whether the current plan would be successful for very long. Guest is there anything that would give you comfort in supporting the company . Guest well, it is very difficult. We are just financial players, so my point of view is very limited. I wish the best for all of the employees of the company, that talent and all of the distributors who were involved. It is quite sad for them, but it is difficult when the bright shining star of the company, actually was harvey. So when you take the bright shining star of a company out, for whatever reason, it is a major dilemma. Alix you are watching bloomberg best, i am alix steel. President trumps last chance at a legislative win before his first year is tax reform. The debate entered a new phase this week with the senate marking up its own bill and the house putting on its own version. Host in the senate today, they begin the markup. The finance committee will be going through line by line the bill, looking for amendments. Expect to see some changes around the finance side, particularly the joint committee of taxation, the scorekeepers of the capital who came up with their analysis it shows that upper middle income people could see a tax increase so, a lot of discussion and pushback from democrats saying everyone in the middle class would get a taxcut cut, and the numbers are not showing that. Host explain to me as a democrat, what will you have in this . The senate seems to be running this as a republican operation right now . Guest it is unfortunate, because if you look at the 1986 tax bill and the history it went through, it was a very long process in which a proposal was looked at and reviewed by many people, adjustments made. There was a lot of buyin, i was listening to some of your show early today in which people were saying, even if they got something passed, it would probably get repealed in the future. What you really want out of tax policy is predictability. This legislation they are rushing through and i do not think it will lead to that predictability. Tom your president took 70 of your district. He is in the air and returning to washington. I know he will return with the support of Trump Supporters like you. Can he get at the margin any other people to support him in the coming months on tax reform and the other issues at hand . Guest i think he can on tax reform. Of course, it seems there are two or three people in the senate and in our party who enjoy sticking it to President Trump, but i think you will see some people get serious and come on board. Because with the tax cuts, these are significant if the task is are significant enough they will help our economy. Guest you have said that you have the votes to get the house to approve your bill by thursday this week. But that is not the only vote, after it goes to the senate, the conference has to come back to the house again. Lets talk about the state and local tax reductions. If it comes back, can you get the votes in the house again . Guest it will not come back, that way. I made a commitment to members in the house that we will restore the state and local property Tax Deduction to up to 10,000, twice the national average. It is important to families across the country, especially to the high tax states, i made that commitment. That the final vote on the final bill coming back to the house will include the state and property taxes action. Host as you know so well, the senate has certain rules to comply with and one of the ways to do that in terms of the big deficit they have is to totally eliminate the soft deduction. Will you under any circumstances go along . What if you do not get any tax reform at all if you do not accept this . Guest look, i am confident that the senate knows exactly what the priorities of the house are. I certainly do, so the commitment to keep the state and local property Tax Deduction is in concrete, i expect that to be the case. Host so just to drive it home, that is a redline over which you will not cross . Guest it is. The idea that you would take health care, the most controversial subject out there, the democrats just won the Virginia Election in part because of that and introduce it into the tax cut legislation makes zero sense to me. It killed any chance of getting democratic support an overly politicizes it, plus to have Health Care Without a mandate make no sense. Host the idea that you need to 300 some billion dollars to plug the fiscal hole that you are expert, on, that is just raising money. Guest any number of things you could do, this is the one thing that will probably blow it up. We have made some great improvements in the house, we know this state and local tax issue is a problem for members of the house and the senate. So i think what you will see is that we will negotiate here. If kevin brady puts a red line down, i know it will be reasonable. If he is not affirmative, i think he feels very strongly and i think it will come out in the conference report. At this point, we are making our mark on it. What do democrats do in terms of tax reform . Do you have a voice on it or do you sit out the debate entirely . Guest we do not sit out the debate, we are on the floor. We were there last evening and we are on the floor right now, we are educating the American Public about this tax scam. It is not simply tax reform, it is simply something that is going to benefit the richest people in this country. Take a look at the Corporate Tax rate, gone from 35 to 20 while in the lowest bracket, people paying 10 will now be charged 12 . Look at what is going on, it is not beneficial to the middle class. As a matter of fact, we have information showing that those making 75,000 or less will eventually have to pay more taxes. So this is a scam, not real tax reform. Democrats are aware of what is going on and we are educating and unfolding exactly what they are doing. I am hopeful that we will get enough members, particularly on the senate side who will help us to stop this tax reform bill in the way that it is going. Host republicans are trying to thread narrow needles in both the house and the senate. It will make negotiations difficult and as you noted, it is only the finance committee in the senate that has signed off, not the senate as a whole. I think what thing that will happen is that the senates tougher approach to deducting state and local taxes will have to move in the direction of the house in order to hold on to enough members to pass the bill in the house. I also think the senates inclusion of a repeal of the mandate to buy insurance from the Affordable Care act is likely to fall away because that provision will engender more resistance among voters as the discussion goes on. Host if this package, is it indeed going to trigger growth here or pay for itself, something that tax cuts in the past have not done . Guest right. This bill will probably spur growth a little bit at the beginning, but not nearly enough to pay for itself. By the end of the decade, as we look out, the incentive effects, the positive incentive effects that come from reduction in tax rates will start to be offset more and more by the accumulation of government debt. And beyond that will happen under current law. The extra correlation of debt will be a drag on the economy, working against the stimulus that may come from the lower tax rates. The bill would not begin to pay for itself, the republicans budget resolution allows for 1. 5 trillion of taxpayers which is what would happen under the bill, i think. This is a great function in the bloomberg, it gives a summary of what is happening here, for price targeting, and average volume, we see a lot of selling. What i want to point out is a valuation, trading at relatively cheap, 48 discount. There are about 30,000 functions on the bloomberg and we always enjoy showing you our favors on Bloomberg Television and maybe they will become yours too. Heres another functioning will find useful, quic which will take you to a quick take and you can get fast insight on timely topics. Here is a quick take from this week. 2016 was again the hottest year on record. The previous 17 years have seen our 16 most scorching years. Scientists overwhelmingly agree that Global Warming is a corporate and it is just getting started. Extreme weather, wildfires, droughts, the hits keep coming. What are we doing about it . In 2015, the world took its boldest step yet in a historical accord in paris. But now comes the hard part. Nations must change policies and invest huge amounts of money and they will likely do it without the united states. President donald trump announced on june 1 that the u. S. Would withdraw from the accord. President trump the reality is that withdrawing is in americas economic interest and will not matter much to the climate. Here is a situation. Decades in the making, the Paris Agreement united the u. S. , china nations toan 190 fight pollution the unsponsored plans and secured pledges to cut Greenhouse Gases in an effort to avoid the environmental disasters the climate models predict. But even if all pledges are met the global is affected to warm , the century, more than the u. N. Target of well below two degrees. Meeting that Paris Agreement means governments will have to offer more incentives for clean energy, scale back support for fossil fuels and make omissions more costly reduced deforestation. It is estimated it will require 13. 5 trillion of spending through 2013. Through unlike past climate 2030. Impacts such as the kyoto protocol, each country sets it target and promises to revisit and improve them. The u. S. Was primed to play a lead role but trumps executive order reverses obama era rules and directives in place. The resulting policies threaten the global fight against Climate Change. Without the u. S. Commitment, other countries may join in abandoning the Paris Agreement making it almost impossible and even more expensive down the line to stop Climate Change. Optimists argue that the shift to a low carbon future is already on the way. Businesses and cities in u. S. Cities california already investing in wind and solar and taking other steps to make it work. President trump i have been called an environmentalist if you can believe that. Alix that is another quick take that you can find on bloomberg. You can also find them and bloomberg. Com along with all of the latest Business News and analysis 24 7. That is all now from bloomberg best this week, i am alix steel, thank you for watching Bloomberg Television. Announcer from our studios in new york city, this is charlie rose. Charlie jeff fager is here, the executive producer of 60 minutes. This year marks the 50th anniversary of the broadcast. The show was created in 1968. Jeff has written a new book about the history of the legendary program. It is called 50 years of 60 minutes, the inside story of televisions most influential broadcast. Here is a look at 60 minutes over the past 50 years. [clock ticking] good even