Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power 20171206

Guests. The first served as u. S. Ambassador to israel during his long and distinguished career. Joins us from hes coming to us from the white house. We do have excerpts here. Does the president understand how historic this could be . I think he has had those discussions with a lot of key officials. Rex tillerson to the vice is they have all weighed in on this in the weeks and months now. Some extent yes, but how does playing out in the region and how does after that speech, it will be a major factor. Paragraphsve a few with excerpts and talks about on the one hand, jerusalem has been a place where christians and muslims as well as jews have been able to worship freely. Israel of israel. What does that mean . We are not seeing to stations between western and palestinian aspirations for the capital. Important with those subjects and remarks. Way for thea president to finesse this without inflaming tensions in the region . If the diplomacy is created and the speech is nuanced, it could help the Peace Process to you not only declares jerusalem as the capital israel, but declares jerusalem of a palestinian state once created and decides to move to westerners home the survey israel, and promises to establish the American Embassy be a balanced move that would strengthen the american position. Israel, and promises to establish the American Embassy to represent palestinians. That would be a balanced move that would strengthen the american position. When be doing something of use to both sides. Be a balanced move that would strengthen the american position. When be doing something of use to both sides. It will really take us out of the game. Announcement that is going to be so divisive with palestinians and the muslim world and many of our friends, if in fact they will not even do it. To think the announcement will process,ump the peace it is naive and does not understand anything about what we have tried to do unsuccessfully for the past 25 years. It makes no sense to make an announcement and then not actually do it. Where is the Peace Process at this point . Jared kushner has been reportedly conducting peace talks of some kind. Involved. Been what we know about where that stands . A lot of time was spent over the course of the first year of the Trump Administration going backandforth across many players, palestinians as well as israelis. And other countries in the region. It is not like any major progress is in an imminent. This would not be what is delivered today. Part of the white house fornistration explanation why it is ok is that it will be a while anyway. There could maybe be a summit by the end of the year, that really never took hold. The thinking, give everyone time to cool down and if there is a desire for peace, this would not be a roadblock and that is what they are saying. Remind us of major issues. Others have been here for many years, unsuccessful, sadly. It is not only a question of the capital, but you have a right to return. What are major issues . You have been involved. The core issues in the Peace Process are a question of borders, the for both sides, the Palestinian Refugee issue, economic and other relations, of jerusalem, the most question of all of becae it is both societies. Particularly talks held in 2008 between Prime Minister and without finding a way to bounce it with Something Else for palestinians, that is not going to advance the process at this time however difficult it is to seek this anyway. President donald trump to come in and make this announcement. We heard officials and leaders weighing in on the anticipated announcement. Among them, the turkish president threatening to cut off ties with israel and we see the president is approaching the podium. Lets move in to that statement on jerusalem. Trump when i came into office, i promise to look at the worlds challenges with open eyes and very fresh thinking. Solve our problems by making the same failed assumptions and repeating the same failed strategies of the past. All challenges demand new approaches. My announcement marks the beginning of a new approach to conflict between israel and the palestinians. In 1995, congress adopted the urging thembassy act federal government to relocate the American Embassy to jerusalem and to recognize that importantly, so is israels capital. Bipartisan, reaffirmed over six months ago. ,yet over 20 years, every previous american president has ,xercised the laws waiver refusing to move the u. S. Embassy to jerusalem or to as israelsrusalem capital city. The president issued their waivers under the belief that delaying the wreck action of jerusalem would advance the cause of peace. Some say they lacked courage but they made their best judgment based on facts as they understood them at the time. Nevertheless, the record is in. Decades ofthan two waivers, we are no closer to a lasting Peace Agreement between israel and the palestinians. It would be folly to assume that repeating the exact same formula would now produce a different or better result. I have determined it is time to officially recognize jerusalem previous president s made it a Major Campaign promise but failed to deliver. Am delivering. This to be in the best interest of the United States of america. This is a longoverdue step to advance the Peace Process and work toward a lasting agreement. Israel is a sovereign nation with the right of every other sovereign nation to determine its own capital. Acknowledging this is a fact death as a fact is a necessary condition for achieving peace. It was 70 years ago that the United States under president recognized the state of israel. Ever since then, israel made its , the Church People established it in ancient times. Seat oferusalem is the the modern israel he government. It is the home of the israeli parliament, as well as the israeli supreme court. It is the location of the official residence of the Prime Minister and the president. It is the headquarters of many government ministries. Decades, secretaries of state and military leaders have met their israeli counterparts in jerusalem as i did on my trip to israel earlier this year. Jerusalem is not just the decadt of three great religions. It is now also the heart of one of the most successful democracies in the world. The israeli people have built a country where jews, muslims, and christians, and people of all faiths, are free to live in worship according to their conscience and according to their beliefs. Today, and must remain, a place where jews pray at the western wall, where christians walk the stations of the cross, and where muslims worship at mosque. All of these years, however, president s representing the United States have declined to officially recognize jerusalem as its reals capital. We have declined to a knowledge any israeli cap at all but today, we finally knowledge the office the obvious. Jerusalem is israels capital. This is nothing more or less than a recognition of reality. It is also the right thing to do. It is something that has to be done. With thehy, consistent Jerusalem Embassy act, i am directing the state department to begin preparation to move the American Embassy from tel aviv to jerusalem. Immediately begin the process of hiring architects, engineers, and planners, so a new embassy, when completed, will be a magnificent tribute to peace. In making these announcements, i want to make one point very clear. This is not intended in any way to reflect a departure from our strong commitment to facilitate a lasting Peace Agreement. Want an agreement that is a great deal for israelis and a great deal for palestinians. Taking a position from status issues including boundaries of the israeli sovereign or the resolution of contested borders. Questions are up to the parties involved. The United States remains deeply committed to helping facilitate a peaceful agreement that is susceptible to acceptable to both sides. I intend to do everything in my such an help forge agreement, without question, jerusalem is one of the most sensitive issues in those talks. The United States would support a two state solution. If agreed to by both sides. In the meantime, i call on all parties to maintain the status quo in jerusalems holy sites, including the temple mount, also known as her rom out sharif above all, our greatest hope is for peace. The universal yearning in every human soul. My administrationss longstanding commitment to a andre of peace and security there will of course be disagreements and assent regarding this announcement. Ultimately, as we work through the disagreements, we will at a piece and a place far greater than understanding and cooperation. The sacred city should call forth the best in humanity, to what is tes not to what has become totally predictable. Peace is never beyond the grasp of those willing to reach. We call for moderation and for the voices of tolerance to prevail oval over the purveyors of hate. Our children should inherit our love and not conflicts. The message i delivered at the toric and historic historic summit in saudi arabia earlier this year, a region mixed enriched with culture and history. Its people are proud, vibrant, and strong. Future is held at bay. Vice president pence will travel to the region in the coming days to reaffirm our commitment to work with partners throughout to defeat east radicalism that threatens the hopes and dreams of future generations. Many whoe for the desire peace to expel the extremists from their mists. Is time for all people to respond to disagreement with reasoned debate, and not violence. For young and moderate voices all across the middle east to claim for themselves a bright and beautiful future. So today, let us rededicate ourselves to a path of Mutual Understanding and respect. Let us rethink all assumptions and open up our hearts and minds to possibilities. Leaders,he region israeli and palestinian, judicial and christian and muslim, to join us in the noble question for lasting peace. Thank you. And god bless palestinians and got bless the United States. Thank you very much. Thank you. Thank you. Thank you very much. Thank you. Thank you. Thank you. We have been looking at President Donald Trump speaking to us from the white house. And historic statement about the United States formal recognition of jerusalem as the v is real. He said it was time for a fresh approach. Many president s talking about doing this had not done it. He even suggested it was a lack of courage on their part and said was time. This is where it has its Prime Minister, and it was time to do it. He also said this was part of an effort to have a lasting peace. It was not as clear why, but he said this was not a prejudgment of any border issues. He very specifically said that. Did not refer to whether its anything about it capital for a palestinian state but did say the United States remains dedicated to a two state solution, something that will be remaining important. We also have the former ambassador of both israel and andt when he had a long distinguished career with the United States and we have margaret coming to us. Ambassador, you have spent a career listening to states like this and hear what is said and what isnt said. What struck you . There were two elements to the statement. To be looked need at. One is that he did not indicate u. S. Support for a two state solution. If the two sides agreed to it. There is backtracking with respect to traditional american policy. He also said while recognizing jerusalem asthere is backtrackis not take the position on where the old question of where the boundaries and exercise sovereignty would take place. It is a very small bone thrown to the palestinians, saying there is something subject to negotiations. The rest of the statement is an extraordinarily under wants to not too nuanced show, basically saying to the palestinians he will have to learn to live with this and we are ultimately ready to help you if you are ready to live with it. The president has effectively taken us out of the game at least with his administration. I want to thank you for your time. Thank you for your perspective. Daniel is a former u. S. Asassador to israel as well to egypt. Now a professor in middle eastern policy studies at princeton universitys Woodrow School of international affairs. Still with us from outside the white house and also with us is chiefl arnold, the bureau for israel and palestinian territories. I believe michael is still with us if i could ask him a question. We have not heard debt heard from benjamin netanyahu. Statementus how this will be taken. An a comment that this is an historic statement by trump. Nt he has to be heartened by what he heard. Some things that struck me trum. He has to be, moving the embassy is a necessary condition for achieving peace. People at argument that it is a stumbling block stumbling and a refusal that they have any rights in israel. And it the argument certainly sounds like President Trump has adopted the mindset. What is the reaction likely as from west bank . What will the palestinian reaction be . Si and sorry, youre asking me . The palestinians will be curious about this. I was listening for some kind of a nod in jerusalem but i did not hear any. Threewas a mention of great religions, and he also mentioned this does not reflect where the boundaries him boundaries should be drawn. I was thinking there might be explicit comments about palestinian operations and there was not. From their point of view, i am not sure they would parse words and find a few things to hang hope on. I expect they will be furious about this and i expect we will see demonstrations across the west bank and gaza strip tomorrow. Given that, what happens next . We heard he would immediately start the process of finding a place pretty him to is hiring architectures and architects and engineers to build what he called a tribute to peace injuries alone. That said as we heard from michael, there is expected to be brought unrest. Have we heard anything about the next step in whatever negotiations might happen . There are next steps to keep. Our eye on the administration is telling us actual construction would likely take a minimum of three or four years. Do the math. He will continue signing the waiver for all of that time. In the meantime, there are other timeline points to watch. One is the Vice President pences Upcoming Trip to the middle east. He is mentioning that today. What climate he needsrrive in and how he to modify as a result. The second is a formal rollout of a Palestinian Peace plan longawaited from the Jared Kushner law in the two of them are traveling backandforth in many con conversations as well as israelis. Know, somet will point in 2018, that is inherently changed by what is happening today. The third thing to watch is a u. S. Relationship with the saudis. Part of what the administration is calculating is that palestinians, because he is to be the galvanizing point in the middle east. That changes the equation for peace. We are seeing the lefthand side of the screen, it is a projection onto the law with the american flag. Israeli government is happy with what they are today. We talked about the possible palestinian direction. What more broadly in the region, the reaction from muslim countries and arab countries, we already heard some reaction from the head of turkey as well as the king in jordan. What to expect from places like egypt. An interesting point. It used to be the galvanizing issue for the middle east. Now people are more concerned about iran and isis and terrorism. It will be interesting to see what extent beyond the palestinians and jordan, which has that population. It is certainly taking a very public and vocal stand on this it we have heard expressions of concern from saudi arabia. Those have been fairly muted. The extent to which any protests gathered steam and beyond the inner circle of the west bank of jordan. Likewant to ask what it is. We heard the u. S. State department has told officials to sort of brace for unrest and is recommending folks not do on essential trips there. Some level of habituation to unrest there. Has that been heightened in recent days. Not yet at least. Officials have been trying to temper any expectations of widespread violence. There have been attacks very frequently, a couple every month , jerusalem or israel in general. Expect there would be height and tensions in the next couple of weeks or we might not see summing happen immediately. The second, which broke out at the end of 2000, it is two months after the summit. Sometimes these things have a way of bubbling up under the surface before they explode. To ask one last question. Saudi arabia, the first two objectives, has the concern over a warmingerhaps even relationship between israel and saudi arabia, giving President Trump an opportunity to move forward in the region . That seems to be what the emerging strategy is. Will be enough to overcome on the palestinian issue. According to reports, they simply you have to agree with whatever plan trump puts forward. As not been confirmed but it seems as if the palestinian issue has left residents. He is to be when you went to saudi arabia, every home yuan o, people talk to known would talk about it. At least for them, their priorities have changed. Publicly, they will not necessarily admit that your they have to at least plato pay lip service. Many thanks to our senior white house reporter, coming to us from the lawn of the white house. And to michael arnold, bloombergs bureau chief for israel and the palestinian territories. Julie lets get the bloomberg first word news with mark crumpton. Mark 12 Senate Democrats are urging senator al franken to step down after the latest accusation of Sexual Misconduct against him. Now Democratic National Committee Chair tom perezs chiming in on social media. In a tweet today paris said everyone must share the responsibility of building a of culture and respect for women in every industry and workplace, and that includes our party. Ongoings are fleeing wildfires in southern california. Flames in ventura and Santa Barbara county have charged that the thousand acres and earned hundreds of homes. The Los Angeles Fire Department says it stretches of interstate four of five have been shut down and neighborhoods near the freeway are being evacuated. Has revealedng brain abnormalities in victims of socalled invisible attacks on the u. S. Embassy in cuba. The Associated Press reports the findings are casting doubt on whether a sonic weapon was used on american workers. The u. S. Says 24 government after loud, ill mysterious sounds led to hearing loss and hear ringing. President Vladimir Putin he will seek reelection next march. Putins statement came today during a meeting of the factory workers. With Approval Ratings topping 80 , putin is almost certain to win a quick victory in the march 18 vote. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. David. We have been focused on the president s historic statement on jerusalem. For the past few months weve been focused on taxes but there is another issue looming this week, whether we will shut down the entire government. Just two weeks after congress voted for attacks overall estimated to cost one point cost one point 5 trillion, there are some raising alarm about federal spending and they could derail the tax floor after comes back to the floor after conference committee. Anna, is this a serious threat to the tax legislation . Anna its hard to tell because no one really wants to shut down the government, although that is going to be a bargaining piece over the next few weeks. The problem is house conservatives, especially, are concerned about some of the promises made to more moderate Senate Republicans and also to Senate Democrats, if they are going to get onboard board with any spending bills in exchange for their votes on the tax legislation. So their concern about some of the horse trading going on over there could end up costing the government more money. However they didnt show any of that same concern when it came to that Deficit Impact of the past Deficit Impact of the tax legislation they passed in the house. We have been here before, but refresh our memories. What does it mean for the government to shut down . Anna we are operating under what is called a continuing resolution since december, when check and nancy struck that deal, the democratic leaders. That keeps the government open until december 8 the now we are up against that deadline. They want to use another resolution to extend the current level of government funding until maybe december 30. And theyre going to need another continuing resolution because their Appropriations Bills arent ready yet. The house has passed their association bill but the senate still hasnt passed bears, dont till they can work out however those are going to look, including topline numbers, spending for the military, spending for nondefense discretionary issues, they need to keep doing this temporary, stopgap measure. How does this play out . On the one hand the republicans want more for defense, the democrats want more for domestic matters and as a practical matter it seems like they could just do both. They are what consumer warning about. Whenever they strike a deal it means more spending view, more spending for me, and more government spending, which would add to the deficit. Although, as i said before the deficit concerns werent present on the tax cuts they just passed. So they are trying to make sure that the deals House Speaker paul ryan and Senate Majority leader Mitch Mcconnell will left the strike in order to get these through, that those dont end up upsetting some of their other priorities. We are talking about this as a separate issue from the tax plan but this is obviously very intertwined with it. And we have various promises that were made, that you referred to, including, as an example, Mitch Mcconnell promising Susan Collins on some sort of bipartisan action on health care. I mean, these are some pretty high hurdles we are talking about, right . Anna right, and that is very unpopular the house. And if senator Mitch Mcconnell is able to keep his promises to senator Susan Collins, thats going to cause problems over here in the house. How they thread that needle is going to be part of the final vote on the tax bill, whenever that comes out of conference committee. And also, on these mustpast ending bills. To complicated further, what happened to the wall . President wanted money for the wall and on the other hand, the democrats say we need to keep the we need to take care of the dreamers. What is happening on those issues . Anna thats going to be one of the main points that democrats used to force the leverage that they have heard the republicans dont have a super majority in the senate, so they are going to try to get the Legal Protection for the socalled dreamers, to reinstate a legislative version of the daca protections. President trump more border security, be it a physical wall, like he has said. I think most house memos would say house members would say we dont need a physical wall but we need tight and border security. I would expect those issues to come up, probably not before saturday, but definitely on this andoftheyear resolution which could come december 30. David anna anderson, coming to , coming Anna Edgerton to us from capitol hill this morning. Congressman jim jordan will be on whatd you miss . Today. President trump has received emails on the announcement on jerusalems, saying, mr. Netanyahu we will not change the status of the holy sites. He is now calling on other countries to follow the United States and move their embassies to jerusalem, and recognize it as the capital. Deep in mind there are only a small number of cup small number of countries that have done that so far. Thats coming from benjamin that not coup, Prime Minister of israel. Julie the was one other, to thought was interesting. He said he was profoundly grateful to trump on this historic day, and i think thats an interesting and important comments because netanyahu was one of the parties who had been pushing for this change amidst an International Community that very clearly and vocally did not. So, netanyahu thanking President Trump for doing that. David note for her statement was ever made. I think mr. Netanyahu does believe in this and wants it, and is going to help him politically at home. Especially with the hardliners in his native country. Coming up to another country and a Prime Minister with some political challenges. U. K. Prime minister theresa may, she is seeking a strict timeline for the eu, and a possible revolt within her own cabinet. We dive into the latest on brexit negotiations. From new york, this is bloomberg. Is Bloomberg Markets balance of power, im david westin. Julie im julie hyman. U. S. Steels leading gains among major u. S. Steelmakers, after u. S. Duties blocked vietnamese steel made with chinese imports. That has a. K. A. And u. S. Steel rising. Joining us with more is taylor riggs. Been an issueas ongoing for the administration of these various industries have been waiting for decisions on this stuff. Is a preliminary ruling. The final ruling comes off every 16th. Its good news for the u. S. Steelmakers today, with the Commerce Department coming out and saying that steel that comes from vietnam, from products that originate in china, have violated duties. To get the language right they have circumvented antidumping and it opens up these other countries to perhaps some theirs and duties when products of steel originate from china. So we have four different steelmakers that we are looking at today. Largest,one of the the group part of of six that pushed for this with the Commerce Department. And the argument was always that, if you took a product from china, changed a little bit and then put it another country like vietnam, and then ship it to the u. S. , that that would be different. Now this might open up some of those other countries cap otheron duties countries to have tariffs and duties imposed on them. David the Steel Industries a fraction of what it was once, taylor. Taylor and the imports are declining. If you look at the chart, you can see that the last twoyear. Was the lowest amount, going down to the 2002, 2003 era. And it really started with the Obama Administration in 2016, dropping additional tariffs and saying china overcapacity was allowed them to dump some of that access dump some of that xcess into the u. S. I guess the big question is how much business will u. S. Steel makers when back. Thank you, taylor. I appreciate it. The u. K. Premised are faces hurdles on a brexit deal, with a looming deadline from the european union, and growing dissent even with her own even within her own party, even within her own cabinet. Theresa may made an address to Parliament Early today, but Labour Party Leader Jeremy Corbyn sought the situation quite differently. The tack that is currently being discussed is on which basis the European Commission will decide what progress has been made and we can move on to other talks. This government is unable to resolve important issues facing this country, in fact it is making them worse. We will ensure there is no hard water between northern ireland. We will do that while we respect the constitutional integrity of the united kingdom. The economy is slowing, more people in poverty, brexit negotiations are in the samples. This government is clearly not fit for the future. Progressations are in in very Good Progress has been made. Negotiate aant good deal, wouldnt it be better if they just got out of the way . David joining us now by simonene from london is foxman, who covers bloomberg. Is theresa mays position improving or deteriorating . I think its all a bit of a mask him at the moment. She certainly had a spectacularly bad week, and its only wednesday. So it could get even worse. Set off, at the beginning of the week to brussels, thinking a deal would be done. And it would start the week on a good note. Unfortunately it has been unraveling since then. At the heart of this is what of the on the issue border between ireland and northern ireland, after brexit. At this point, no side can agree. You have it had a rare bit of unity almost, between and the proeu forces in the u. K. Now you have the brexit secretary telling the Prime Minister that impact assessments that everyone had been hoping for dont really exist. So we will have to wait and see where things go from now, but i suspect we will have a lot more negotiating and a lot more drama, to come. I want julie i want to take a moment to talk about the last thing that you mentioned. This is the u. K. Brexit secretary david davis that youre talking about, who for nearly a year has been talking about and promising these economic assessments, sector by sector of the economy, and now is saying, no we havent actually been doing that. What have they been doing, and what has he been promising, if in fact this stuff doesnt exist . It does have echoes of, the dog ate my homework. They have put forward what they assessments and they say is a broad analysis which encompasses elements of how brexit would affect specific sectors. Unfortunately, the way came across this morning is that he , on theging suddenly impression that he had given mps before, that those analyses were much more specific than the documents that have actually been delivered. In the past few days, these assessments have been made and thee to mps, feedback has been pretty terrible, people saying that they lacked detail, and that they were not what they were expecting or indeed had been promised. Policy is one thing, and people do disagree over policy but competency is Something Else entirely. And now we dont have the detailed reports we thought we had him and this comes on the heels of the problem with ireland where the critical, the party that they had to have in order to have the government, they said we never even saw the language that the irish Prime Minister had seen, so how could we go along with it . He doesnt seem like they know what they are doing. I think that would be a pretty fair impression to get, from the circus of the last few days. Is that theproblem politics are pretty complicated. Youve got a very small party, who hold the balance of power in the british government. Are toughp negotiators and very much of their own agenda. It is tough for theresa may because she has to balance opposition within her own who wantbetween those a much harder brexit, then many who are more moderate, and the dup has very specific demands, and at the same time the republic of ireland has very specific concerns, not to breach the agreement and are very concerned that this issue about the border has not been properly this has shown is that theresa may is not very good at politics, which unfortunately is what this is all about. Its a negotiation is going to be lots of disagreement. It is a negotiation and there is going to be lots of disagreement. David thank you, so much. A slog,t feels like indeed. Coming up, speaking of islam, we take a look at the senates tax proposal, and the littleknown pitfall that could affect how you make money and how much money you make from the stock market. From new york, this is bloomberg. David this is Bloomberg Markets balance of power. Im david westin. Julie im julie hyman. A new move will drive up taxes on investors if the senate gets its way. The bill mandates that those with taxable brokerage accounts, ll shares that they have owned the longest, first. Like all things involving taxes it gets a little complicated. Lets explain what we are talking about, here. Think of shares from apple that went from under one dollar in the 90s, to what they are now. Over that duration of time they have gone pretty much straight blipsich with some here and there. If you but shares in 1995 when they were under one dollar, you would be paying taxes on and enormous capital gain, 169, or Something Like that. If you bought them in 2012, youd be paying taxes on the difference between about 80, and a hundred and 70 80, and 170. The shares that you bought in 1995, about 30, 2012, about 15. So you would sell the wednesday you bought in 2012 and hang onto the shares you bought in 1995. The senate provision would change that. They would say you have to sell the shares you bought first, and that would obviously eliminate your ability to minimize taxes. Regard this as a wealth transfer. You are transferring your while to the government. Thats what they did. The senate says they can do this because they want more money to get them to their 1. 5 clean dollars. What if you want stock, you say i own all these chairs, what dont like it to sell which shares i want to sell . Why can you do this to me . Simone a real question is the enforceability of this, because potentially could have one broker that bought your 1995 shares am a that is hanging onto them. And one the but your 2012 shares, and is hanging onto them. And if you call your 2012 broker and say, sell my shares, they have no idea that you have this other, 1995 cap. And are we going to make the irs go through this, too . Wealth advisors i have talked to have talked about that as a strategy to get around these taxes. Obviously this hasnt been written into stone and it only appears in the senate bill. The we are really good have to see. By the way, i want to point out that the money expected to be raised on this provision over 10 years. 2. 7 billion. David adam 1. 5 trillion dollars of 1. 51. D out clean dollars. Beone i think you may running into a deep, complicated hole if this is your way of doing it. Julie do we know with this idea came from . No and that is something that has confounded the people ive talked to. It would love to know where this idea came from. And mutual funds have really pushed back on this. It doesnt apply to them but it does apply to other funds like hedge funds, private ones of any sort, and retail brokerage. Julie is there any rhyme or reason as to why they are exempt, in the bill . Simone there is an average cost calculation, that essentially changes the accounting so that theyre going to get less out of it. Also, they have lobbied really hard. David bloombergs simone foxman, thank you. Julie we been talking about the decision by the Trump Administration to move the u. S. Embassy in israel to jerusalem from tel aviv read various World Leaders are weighing in. Emmanuel macron, the president of france says that the trumpjerusalem decision is regrettable. To afp. Cording on Bloomberg Markets, were going to cover this more, and also the latest on taxes and the potential for government shutdown. David live from new york, this is bloomberg. Welcome to Bloomberg Markets. Scarlet we live in the next hour. Foreign policy from President Trump. He calls jerusalem v israel. What this means at home and abroad. Theyll discuss what is driving the recent selloff. Plus, tax overhaul. Mitch mcconnells latest comments on a key deduction and more. We have got the markets closing and a few hours. We have been down and up. Dow and looking at the the nasdaq fractionally higher