To talk about the key legislation. Lets check on bloomberg first word news, with emma chandra. Bill de blasio says fire officials know there was only one person in todays bombing. A 27yearold man believed to be the bomber is in custody. He was wanted along with three other people. It is a new credible threat against new york city. We will bring you more information as we get it. Russias president made a surprise visit to syria and ordered most Russian Troops should begin to withdraw. He met with the syrian president. It is the First Time Since he sent rested Russian Forces there to back us up and the civil war. President trump plans to make closing arguments for the republican tax cut on wednesday. According to a person familiar with the matter, the speech will take place in washington. House and Senate Negotiators are trying to work out the differences in the tax bills. Returning to saudi arabia. Movie theaters are returning peters they shut down theaters back in the 1980s and a wave of ultra conservatism. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Chandra. This is bloomberg. Thank you for that emma. Republicans have one week to reach an agreement if they are going to get the tax bill to President Trump sport the holidays. Joining us from nashville is forget former reagan advisor. Economics and the current gop. Let me ask you. Were seeing the tax plan go forward, but there is some dispute. You wanted a 15 Corporate Tax rate originally paid if it ends up being 22 , does that make a difference . It makes a very material difference. It is still better than 35 . Are hearing from analysts that it will not be for a long time that we see the benefits from the Corporate Tax rates. Detail exactly how we will see benefits next year. Arthur the benefits will be shortterm. If we get the rate reduction, in january 2018, we will see less tax evasion, we will see lex less tax sheltering, Companies Moving that, and real economic growth. Well see very material benefits right away, including what i believe the stock market appreciation is due to the tax rate reduction on corporations. It is a big loss for the world and the u. S. Vonnie you say that, but what is your proof suggesting that some of the multinationals will move out of ireland or scandinavia . Why should they move back . What is your proof that companies will actually move . Incentive for moving out of the u. S. Will be greatly reduced. Aat in itself would be material improvement in the u. S. Economy. If some of the Companies Find it more attractive to come back because u. S. Tax rates are much lower because they left us because they were so high, it will be a double whammy. It will be ice cream on top of the ice cream, and it will be a great benefit to the u. S. That, it is tax sheltering. Incentives for tax sheltering will be reduced, and they will report more income, and that will be a big income. Tax evasion will reduce. So will tax evasion in business forms. There will be also as of benefits that no people are talking about. Only experts in the area of corporations understand how beneficial this will be for the u. S. And companies. Vonnie but some figures out. Im sure youre done this. And us figures on gdp dollar and cents figures. Arthur my sense is this will increase gdp over 10 years, 5 . L, by about my numbers tell me this will raise net raise about 1. 5 trillion in tax revenues above what they otherwise would have been. It will lead to very big changes in the political environment, which will lead to also to other tax and spending changes. Just the way it happened with us under ronald reagan. The first bill was in 1981. Tax,hen the 86 1986 lead to prosperity through bill clinton. Vonnie you mention regulations. There is a good story in the bloomberg how the president talks about rolling back regulations, but in regulation he hasnt and may have killed some. The actual translation regulations have not been rolled back. Arthur some regulations have been rolled back. This bill if it gets rid of the mandate, would be a huge cut and regulations on people who dont want to join obamacare and will have to pay a tax that they now do have to pay, which is an awful regulation. There have lots of other regulations, and you can see it in the growth rates. Growth rates are up over 3 . To 6 if webe at 4 pass the bill. I am excited about the prospects going forward. Once you get it rolling, everyone joins in and you will find good policies coming through for years to come, and will lead to a long era of prosperity. That is my opinion having experienced it in the 1980s with president reagan and president clinton. Your advice for the years coming, rolling back the individual mandate . Arthur it is just if they dont want to buy a obamacare and they get taxed. They dont want it and they dont think it is right for them, but they dont want to take the tax, so that by it. That is not a good policy for anyone, for growth for the company. Vonnie a want to talk about individual tax rate. Still questions. Aside from the tax cuts we saw, how most went unnoticed. I am noticing wondering why it will be different this time. You keep mentioning the reagan tax cuts, and i see you are ready to discuss him because you are smiling. Sorry to am smarter be smiling. Cutsomments about the bush were weak and little. Bush spending increases were in normans. I dont consider enormous. Adont consider george bush tax negotiator. When you have a fundamental bill of taxation, which is government spending, it doesnt work well. Vonnie those who make between 40,000 to 100,000 will see a relief. That is really quite little. Haver i am hoping they their taxes increased dramatically because they will make so much more income and i am hoping the poor who currently dont have jobs will pay taxes because they will get jobs and have income. I am hoping those who earned medium income will have much higher incomes going forward, and this will lead to increased taxes by cutting tax rates. I believe that is exactly what will happen. Whatieve that is exactly the data will show is Historical Data which we can infer from the future. That will show we will get a very nice boom in the u. S. Economy and more tax revenues and better fiscal situations, especially on the state and local level. I am expecting a large increase in state and local taxes as a result of economic growth. Arthur arthur laffer, thank you. Some of the details are still being ironed out. 40 minutes into the trading day at this point. Bloombergs Abigail Doolittle has more. Abby we are looking at small gains for the major averages. Ll are higher there is a little trepidation on the part of investors with not a lot of in fiction around tax reform. Republicans have a lot to get done. Plus the explosion in new york city. We do have a lot of action for bitcoin. If you happen to see the you areg terminal and looking at in blue is bitcoin. In white we have the Bitcoin Futures. We are in the first 20 four hours of futures trading for bitcoin. Its by tire. Look at the big difference. A lot of investors are saying this is a huge difference, 1000 basis in essentially. The reason we are not seeing that close in so wide is there is not a lot of liquidity. At some point when there is more liquidity in the bitcoin market, future should drop down. Some suggesting it could go down 8 from current levels. We will Pay Attention to this. Lets take a look at stocks that are trading sharply higher on bitcoins wall street debut, including block chain. Up 23 . Companies have chips in cryptocurrency go higher. Marks excepter bitcoin as payment. A lot of green around bitcoin related companies. After two day winning run after the biggest weekly gain since midseptember, we also gain for a second week. Does you and go with the function . This is the pound since last monday in gains to the dollar down by a tense of a point. A point. St 1 10 of forecast is inh the brokerage for sterling. By march. Cted at 11 talks with the eu on trade made progress failed to progress as quickly as hoped by strategists. That is the pound. Home values in london are likely to fall another 2 in 2018, after a 1. 8 percent drop this year. In december alone, prices fell by 3. 7 percent in london, 2. 6 nationally. That monfils least sees a seasonal slump. We have talked that month usually sees a seasonal slump. His is the chart we are seeing some changes. Lenders are in talks. Under the talks, lenders wouldnt sell back until 2018. Gettingan see, shares absolutely hammered in the last week, down by 80 . Coming up, bitcoins wall street debut will track the cryptocurrency in todays feature in focus. This is bloomberg. ,nouncer futures in focus welcom mark live from bloombergs new European Headquarters in the city of london, im mark barton. Vonnie and im vonnie quinn. Check out the bloomberg. You will see the contract of as much as 26 with two tempora trading halts be poor before ending. Quite a beginning. Julie there is some level of liquidity. Looking at the cryptocurrency monitor. To billboard place everything. I am seeing volume of about 3000 shares that have been trading. It is trading just under 18,000 for bitcoin. On the right is the futures and on the left is the cash trading. That shows you the difference between the two because cash bit point is trading around 16 thousand 500 at this point. 16. 5 at this point. Weve seen big swings in bitcoin. It. Had prepared for that is why we got trading halts happening. There as some there is some liquidity. What we are hearing is that trading has been orderly. No crises as of yet it seems. Vonnie contract will be revealed in days. There is a big difference between the two. Explain why. Julie one of the difference is where they are getting the prices from. As we have learned, talking about bitcoin over the last several months, is that there are a lot of different bit point exchanges. One of the question was, what do you base the future prices on . They are basing it on one exchange, the gemini. Multiplepolling from exchanges to determine price. In terms of margin requirements, we dont have all the details on cme, and it could change. On itsis requiring 4 return pay that means when you buy a bitcoin future, you have to put up 44 of that price in collateral, which is a higher margin then you would see for other types of products. Places like Interactive Brokers are requiring a 50 margin if you are going to trade Bitcoin Futures on their platform. Traders giving any reason for the futures contracts for the stock price right now russian mark julie we are not now . Getting a lotnot of answers. In a typical futures market, you generally see the prices being brought together. Because you dont have a lot of Institutional Investors involved, but rather other trading firms and not custody banks, that is one of the reasons you see this gap between the two. Vonnie thank you to bloombergs julie hyman. She will be back and eight next hour with the ceo of the s cibo. Mark lets continue with the bitcoin on todays futures in focus. Joining us is edward tilly. What do you make of it . Edward it is good given the parameters. A 44 margin might be sent but that it might not be what the brokers are doing some went to 70 percent in some way to cash. Theres also no shortage in also thend participation of Brokerage Firms is almost no. Most of the large films firms them toallowing their come in and sell. Getting over 3000 is a victory. Mark lets move on. Oil steady today. S. Drilling is expanding opec nations signaling it may face out production cuts if the market improves i the middle of the next year. We are stuck in a bit of a range, what is next . Edward we went up so much of the opec talks. 60 in the wti. What the markets are doing is settling back and looking for trade bottoms. What happens is, if tax cuts go through, once we hit through that phase of it, the market will look at the u. S. And say good growth. China is replacing the u. S. As the largest importer as we are speaking right now. 6 rangenomy is in a of growth. Europe is coming on. With the fomc and the European Central bank and other Central Banks still saying on a policy of growth overall, i think the outlook for oil is still pretty good. Hearing the two opec countries that are considering backing away means stability is coming to the market, not that they want to drive prices down, but the u. S. Is stealing market share. There is no question about that. Mark always glad to see you. Bloombergn markets, we are getting here why nothing is off the table white when it comes to brexit. This is bloomberg. Partythe u. K. Labour wants to allow second referendum if it wins. Joe mcdonald spoke exclusively with bloomberg. We have to reach a traditional british compromise and bring both sides together. A compromise, which is to try to get the best we possibly can in terms of protecting jobs and the economy. Market andthe single there are benefits. Your position is evolving. You could possibility stay in the Single Market . John as close to the Single Market as we get. Could you rethink the policy and say why dont we stay in . John the problem with staying is, is that it will not express our views for the referendum. There are issues around the four freedoms that have to be addressed. I think those issues will be addressed anyway, not just in the u. K. , but across europe. To have this relationship is the closest we can get to the market and that will protect our jobs. Perhaps that might impose on the price. What would that be . John the difference between us and the government policy approach, is we want an atmosphere in our conversations of mutual interest and mutual trust. That is the sort of relationship we want in the future, a collaborative relationship. On the second referendum, is that something you are thinking or do you have a fixed position . John there is no fixed position. The general view is lets get into negotiations on trade and see where we go. There must be a final, meaningful decision in parliament itself. That is why with the withdrawal and they will insist upon that. We run the argument that we may have a majority for that. Could there be a second deal form on the trade parliament . John we are not ruling anything out. We are trying to get to the negotiations and make sure we have proper partnerships. It should be parliament that decides. Mark u. K. s chancellor John Mcdonnell was speaking. Vonnie still ahead, big money, big ideas. We learn from a global firm under management. That is next. This is bloomberg. Is this a phone . Or a little internet machine . [ phone rings ] it makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And ask how to get a 200 prepaid card when you buy any new samsung device with Xfinity Mobile. A new kind of network designed to save you money. Click, call or visit today. Vonnie live from bloomberg World Headquarters in new york, im vonnie quinn. Mark and live from bloombergs new European Headquarters in the city of london, im mark barton. This is bloomberg markets. Lets check on bloomberg first authoritiesemma are calling the exposing in a manhattan subway station this morning and matt attempted terrorist attack. The suspect has been identified as a 27 euros man. Year old man. He suffered burns and three suffered injuries. The attack took place at rush times square. It was called a lowtech device. Californias wildfires are moving north. Hundreds of flight homes. So far, the fire burned more than 270 square miles and forced evacuations of 70,000 people. Are 15 contained. The u. S. Supreme court declined gay,view whether lesbian, and bisexual employees are protected by workplace discrimination. Aey refused to hear a case by former Hospital Security guard in georgia who said she was fired because she is a lesbian. Companies such as apple and google took her side. Kuwait says the cuts could an early if the markets are crude and rebalance and bounceback. At the end of november, opec and its allies agreed to extend to the next year for prices. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries period. Countries. Im emma chandra. This is bloomberg. Vonnie to abu dhabi, there is a most significant opportunity and risk. Bloombergs Erik Schatzker caught up with the global firm. To acquire in a bid the mall owner. Are a fair and transparent organization. Those on the company are our partners. We also want to share with the board. We have been that way with the board and shareholders. We will put an offer out there that we think is fair. If they want to do something different, then they will do something different. I think it will all make sense. The thing that makes the gdp offer so fascinating is what makes brookfield and interesting organization. We know you are contrary and about u. S. Malls. We know you have been contrary about brazil, and the early signs that was a smart bet. Is there anywhere else in the world that you can be contrarian right now where values where they are with the cost of Rising Interest Rates . Eight years into a cycle it gets tougher. We always find pockets of things to do. You would not have said 18 andhs ago that buying solar wind farms in america was going to be a valued investment. Yet, we got in trouble and we got a two companies, and large wind solar business. These are out there, things come along. Countries, india offers value entrepreneursthe for the a lot of money and banks are going to reorganization of the financing. There are opportunities there. You have taken opportunities sell American Real estate, where else do you feel valuations are awarding you to sell today as opposed to buy . We are always selling and we are always buying. There is not in developed andomies and Properties Infrastructure and power, where contracts are long and credit is good. People are paying high prices for those. We have been selling London Office buildings. Even though you think red lit brexit will work out better than most . We are developing buildings today, but we are selling at very high prices. We are selling in park avenue in new york city. We are selling power plants. We are selling transmission 30yearat have contracts. Anything that feels like income to us, we are selling. Anything that has Operational Development work to it is our business. Is there anything you own for a market in which you now and then participate where you would say prices are stupid . On whatl depends peoples parameters of investment. Even the people that are buying on park avenue and in london have good reasons for doing it. Thatther have fixed income they are taking out of. They are taking money out of 30 year bonds. If Interest Rates, they will lose capital. K what looks to be to you . All business that needs rework and scaled help and Global Competitiveness helps. That is where we go. Nothing we just stay away from markets when they have risen. Erik does the price of bitcoin look stupid to you . To us, value is about the Intrinsic Value on a discounted cash flow analysis. If it doesnt have cash flow, it will be converted into a cash flow stream. There are some assets that dont fit that criteria. We dont qualify them as assets. Therefore, bitcoin would be one of those. Erik it is not an asset . It has more Intrinsic Value. It has no Intrinsic Value in our definition of Intrinsic Value. If the someone else wants to speculate or invest in it, it is for them. It is not for us. Was bruce flat, ceo of brookfield. He was speaking with eric check square. Eric checks or. Mark coming up, the populist right has fervor into u. S. Political structure than previously thought. We have new analysis on how populism is redrawing the map of europe. This is bloomberg. Bloombergs new European Headquarters in the city of london, im mark barton. Vonnie and im vonnie quinn. This is bloomberg markets. Theres a conference underway in atlanta. Is one. G bios hshares trading at a record high. Higher. S trading joining us is taylor riggs. Are coming outs with raising and fundamental news coming out of the conference. Also, goldman raised to 309 a share. Jefferies also raising the price target by 211 a share. Two different types of therapies that they were excited about when it came to the conference. For blooderapy cancer. Goldman says it will have a disruptive impact on the market. Jeffrey saying it really could improve. They are talking a lot about sickle cell anemia. Jeffrey says it is a vital instruction point here when it comes to 2018. When the analysts are talking about this, it is held to look at fundamentals. For revenues going that five years, fiscal year 17 and 2018, revenue is the highest it has been. Analysts excited about fundamentals and what they are hearing. Peers being affected . Taylor there are a few. Global therapeutics is down because they are developing rival drug for some also disease sickle cell disease. In the biotechs index at the bottom, bloomberg was the second largest outperform her. Moving the index slowly but surely higher. E for blueprint thanks to taylor for that stock of the hour. Mark lets look at Business News stories right now. Hsbc wont have to worry about moneyunishment and laundering control. The british bank says its fiveyear profits is in agreement with the u. S. Justice department. And the government could ask for the charges to be dropped. They were fined 1. 5 billion for helping mexican drug cartels laundering money. Company has aing 1. 8 million margin. According to people the startup manager wants banks to agree not to sell stock to baxter financing until next year. Steinem up after saying it was unable to publish its results. One time king of the coto market is closing its fun. He is shutting down the cc plus fun which specialized in trading coffee. They found it difficult to make money against algorithmic traders. The Bloomberg Business flash. Vonnie coming up, dimitri papadimitriou, minister of economy and development at hellenic republic. This is bloomberg. Vonnie in 2017, it look like the year when moderate politicians backed europe, germany and france, look again. The election of and the worker and go Merkel Angela merkel. The first far right party entered in more than five decades. Meanwhile, the Dutch Freedom Party became the netherlands number two party. Analysts looked at 22 countries over 30 years to gain Historical Context and perspective. Where joined to discuss the results. You have been analyzing data. What prompted you to look into the rise of the radical right . We have done a lot of coverage on the selections in europe from the netherlands to france to germany. We were talking of a phenomenon where parties which are generally on the radical right donech and you have fringe and you have done well. The firstthere was time that you were able to break into a national scene. Entered the alternative. Tracking these data points, we thought why not look at this more holistically overtime across the continent. We realize to do that, it would it involve creating it from scratch and get lots of data. You look at 22 countries over european four years. There was a trend. This was not as cyclical as you would imagine. At the latest check, the parties had about 60 of the vote, up. Rom 5 20 years ago they have been growing a fair amount. Seems authoritative to be the cola sing factor for the parties which emerged from the margins to the mainstream. What we found is that especially in eastern europe, this is most pronounced in poland and europe. It is really cut into the ethnic history. It is called ethnic nationalism in europe. It is not so much about protecting the national identity. We think of it as so aggressive and so tolerant. In that case it is more tight into the fact that there has been a surge of immigration into relatively small countries over time. The actual reasons are often hard to grasp because these thees arent differences are extremely across the country, yet we seem the parties see this resonating. Vonnie has a known come up with a reason why we are seeing so many different places for so many different reasons, can it be traced to an economic crisis or Something Else . Several have pointed out that of theh has been made central crisis as a reason for this. There are elements of antiglobalization, especially in france, where the loss of jobs and unemployment come into this. Spoke to pointed to was the fact that what is happening that these issues have been there all along. There was a sense that your country is changing and there was sovereignty, especially how the e. U. Has grown. Other issues came first. Now it is just the time that the issues are at the front with refugee crisis and this becomes the primary issue. You see that if you look at barometer surveys overtime, immigration has come up as a major issue. Vonnie what is the future of the region according to you and who you spoke with . In 2019 we had hearty elections. Arties have been growing seats it is important because this is the main body and it has to approve the brexit deal. These parties know how to sit at the table. Vonnie we were speaking about the rise of populist parties in europe. I would urge you to go to bloomberg. Com to look at that. It is a fascinating work of art. Stickingat stuff paid with politics and the economy, recent data shows the gdp is recovering at the quickest pace. Former greek minister of economy and development. This is the former greek minister of economy and development. Dimitri the only way to fix it is by creating a comet budget and a new deal investment policy. Mark we are joined by dimitri papadimitriou, the greek minister of economy and development. Spoke earlier. Thank you for joining us. What is the external perception of the economy on the peak of the greek and eurozone . Externals investors fear economy, which has risen for three courses . I have seen from the investing public toward the investment in greece, there are many opportunities in economies as a member of the eurozone, but it has features of emerging markets. Provide opportunity for investing with good return. There are forms of tourism. There is medical tourism and religious cultural tourism. Aside from that, the primary section are sector are where the primary products of the mediterranean diet that people are looking for. There are opportunities for privatization programs. Some of public assets are being used for longterm lease, where they include rare roads and certain infrastructure projects, toll roads. These are all significant investment opportunities. I think the investing public has seen that. See significant investments taking place in 2016. And also in 2017. I tried to convey that there is more room. Clearly, youre still in your program and you need to implement overhauls to get exchange for fresh loans. When you exit the program in 2018 . Come in absolutely august 2018. We have an aggressive agenda. It has been recognized by the ocd and the European Union that we have passed many more legislations for reform changes than any other previous garden. There is still more to be done for the evaluation. I think we are committed to this these reforms. We are able to see they take place before exiting the program , which we will do in august. Vonnie the gdp has turned positive for greece. What is the appetite like . In new york and washington, d. C. Tomorrow, what are investors saying to you and what Interest Rates do you have to for things like bonds . Dimitri the Interest Rates have been dropping and bond funds have been dropping. Itwhat we see fort returning to the 2009 levels. Upgrading by s p has helped actually to decrease the bond spreads. I think we will see that we went to the market in july, and we did very well. We did some Debt Management in the previous week, exchanging longterm bonds of 25. 5 billion to five and 10 and 15 year bonds, and the returns were good. Spread of the greek 10 year to the german tenyear, and people can see it is really dramatically improved grade what are you going to do about the loans on the banks books . Dimitri there have been a lot legislated. Of the loans have actually been sold. The banks are selling some of the loans to companies that will service them. That can beo some placed to electronic means. As it stands now, the bank of greece indicates that we are on billiono meet the 40 decrease. Phonic oh we are out of time. Any hedge funds or invest vonnie we are a lot of time. Any head funds . Dimitri many, many. Vonnie are they stressing investors . Dimitri know, they are eager to investigate. Vonnie that is dimitri papadimitriou, greek minister of economy and development. Out what is happening in european equities. We are 40 minutes to the end of the monday session. Dax is down. Check out currency market. A big week for banks. We also have the bank of england, he ecb, the euro is up against it. The pound is lower up against u. S. Currency. This is bloomberg. Mark it is 4 00 p. M. In london. Bloombergs brandnew European Headquarters in the city of london, i am mark barton. Vonnie in new york, i am vonnie quinn. This is the european close on bloomberg markets. Mark the top stories we are covering from the bloomberg and around the world. The coin lands on wall street. Futures surge in their debut session of the cboe exchange. We are live with their chief executive. Boe otherhe highlights this week. Investors embrace for the steepest rate hike since 2006. We speak with the economy and finance minister about the timeline for president macrons ambitious plan for europe. Lets have a look at what is happto