On capitol hill. A lot of debate on whether the middle class work feel or remember taxcut. A lot are saying its not a tax cut for the middle class but the wealthiest and the corporations. In the version of the senate bill, and that is most likely to closely resemble the final bill, all tax cuts for individuals 20xpire in 2026 area 36. David is does this mean they wont get a bill . Congress can get it all the way down the field. They are closer than they ever have been. Republicans are confident. Even democrats are saying its going to happen. Now it is up to us to write to in 2018to people why they should vote for democrats versus republicans. They are confident they will all to repeal the mandate. How will they get this . Time. Has a very critical depending on what happens on it tuesday with the roy moore race, that could be interesting if a democrat takes that seat. Are a lot of moving pieces. Remember, Susan Collins said she got commitment they would pass the market stabilization plan by the end of the year. Time is ticking. They have to figure out tax reform in the next couple weeks as far as spending. There are a lot of balls in the air. When you have a multiple moving, there is a high likelihood something doesnt go as planned. David doesnt this work again Susan Collins . Boatill have to make her on texas before she knows she will get the other bill. Frankly, Mitch Mcconnell may be in the senate, he is not in the house. In the tax already negotiations wheeling and dealing. If we have to take the and eventual individual mandate are the pill to get her vote because they wont get it done in time, they are are ready planning. It is a way we can find revenue to make our plan work. They dont want to do that, but it is a possibility and they are planning a contingency plan. Sherry what about contingency plans for the spending bill . What happens after the 22nd . There are a couple different options. One is a couple weeks continuing to january and maybe a continuing resolution. The Freedom Caucus wants more time to figure out. They could also split defense and nondefense and fund the military and defense spending later in the year and figure out more of the Discretionary Spending on a shortterm basis. There are a lot of the negotiations that need to happen. Folks like the conservative Freedom Caucus have strong views. They have threatened to blow up the tax process to get what they wanted on spending. All of these things are in play and there are a lot of negotiations and they can get muddled. David last one on taxes paid will the house get anything . Will they get anything the way they want it . They ares one thing pushing for. The California Republicans want income tax reductions thrown in on that. The question is, will they get more votes without costing too much money . That is where it falls. Sherry thank you laura davidson. For bloomberg first nerd first word news. Mark a man was cut detonating a times pipe bomb in square, injuring himself and three others. Investigator said it was not clear if it was set off intentionally or if it went off prematurely. The suspect in custody was identified. He was being treated at a hospital for burns to his hands and abdomen, while three other victim suffered minor injuries. At a News Conference today, three women have accused President Trump of Sexual Misconduct and called for a congressional investigation into his alleged accidents. The women say mr. Trump made sexual contact with them without their consent. The third accuser says mr. Trump caved inappropriately with contestants in the miss usa pageant he owned. Mr. Trump has denied the allegations, since they were ahead of the 2016 president ial election. Theresa may has even into critics Want Parliament to have more power to scrutinize laws that are needed as part of the brexit process. Her official spokesman said the Prime Minister has accepted change to the eu withdrawal bill , the crucial debt law that is clearing the way for the u. K. s exit. Theaters are coming back to saudi arabia after a 35year absence. It is the latest attempt by the crown prince to socially reform the country. The saudis shut down the theaters in the 1980s, as part of a wave of ultra conservatism. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. As that coming up, we will talk to one of washingtons most fierce advocacy groups on why they Want Congress to eliminate obamacares individual mandate penalty. This is bloomberg. Sherry this is Bloomberg Markets balance of power. Im shery ahn. And im david gura. Lets go to abigail doolittle. The dow, s p and nasdaq trying trading higher. Tech is rotation out of that we talked about last week was all but forgotten as the nasdaq rallies. If we dig into the sector portion of the s p 500, technology is on top. Lets take a look at the we have six of 11 sectors trading higher, explaining the modest gain for the s p 500. Up top, technology of 8 10 of 1 . Right behind it, sectors have been vying for that. Energy is up. Lets take a look at some of the Energy Winners today. We have natural gas and oil trading higher, oil of about 7 10 of 1 . Natural gas up 2 on the best a , as manye november forecast for cold weather in the northeast. We have some e p trading higher on all of this. In tech, lets take a look at some of the winners. Symantec of about 4 . This is a top stock for s p 500. This on the news that symantec, the Internet Security company is , and nowg with oracle their Security Technology is available on oracle, the cloud marketplace. We also have apple sharply higher. Of 1. 97 on pace for its best day since november 3, as the company has said they have bought the early iphone app to boost apple music. Investors liking that. Ea electronic arts, up one point 6 . Today, it all comes back to bitcoin. Amd is up. It is thought that the chips will go into bitcoin. Bitcoin surged in the one day first day of trading. Is one of the top stocks relative to bitcoin today. We have seen it shoot higher overtime over the bitcoin story that seems to be continuing on. Of abigailgoal doolittle, thank you. David giving time to get out of president s on the desk. As part of the tax push, the president will give closing arguments in a speech coming up wednesday. Is joining usm from what she didnt. You support this legislation, particularly from washington. You support this legislation, lets start with the repeal of the individual mandate. Do you feel strongly because of tax policy or principle that you dont think the Affordable Care act was a good idea russian mark michael idea . Massivelybamacare drove up the cost of health care and compel people to buy products, figuring no one would want to buy them. The individual mandate is bad health care and good to get rid of. Something that will pay for elements of the tax plan and has allowed it to be a better tax plan and one that can get through the senate and hopefully house. It is going to win both in terms andegislation, and tax health care. Sherry Susan Collins said she got commitments to pass the payments the bill on payments and also Fund Insurance be how do you feel about that . Can you be on board if that is carried out on the sidelines . Whatel we will see happens with that legislation. There is a lot of work that needs to be done on what looks like alexander murray. Those will be debated at the time. Likevet other senators lisa murkowski, talk about the fact she does not think an individual mandate makes sense. The federal government should force people to force products. That is not the job of the federal government. It will be exciting to see the mandate taken out. Sherry it sounds like you are not convinced that the premises Susan Collins got will come through. Michael promises Susan Collins got will come through. Michael i wasnt in the room. We will take it up and look at it. I am sure Susan Collins will be thinking about that. Lets talk about state and local taxes. You very much believe they should be done away with altogether. At the same time, we talked to gary cohn on friday and he had a different view. Here is what he had to say. The house is concerned about so members salt members. Increases here. What they are trying to do is say, look, maybe we should expand at the 10,000 deduction not to just include state taxes, but income taxes. The white house is fine with that. If that is where it goes, they are fine with that. David are you at fine with the white house . At you it are you at loggerheads with the white house russian Mark Michael White house . Michael what i have seen around last month is what is going on in new jersey. You have a far left democratic governor that was just elected. He was elected on the premise of raising taxes for millionaires. Of the Jersey State Senate said we are not going to move forward on the billionaire tax clozel until we see what washington does and whether the deduction will go Tax Deduction will go forward. A big reason of that is 40 of the fiscal cost of the terrible liberal government costs of california and new jersey is being carried out by taxpayers p getting rid of the state and local deduction would unleash a fantastic conversation all across our country and especially in the high tax states about the amount of government and the amount of taxes that it cost to have that level of spending. The people of new york should take it and get their taxes cut. David you find it to be a terrible liberal government. Is it the federal governments responsibility . Michael it is absolutely absurd saysthe federal government states went to subsidize 40 of the tax word and of the policies of new york. People who live in new york are welcome to spend and they should get a taxey shouldnt deduction that doesnt make them feel the full pressure. Sherry corporations will still be able to write off state and local tax to duction spirit how do you justify this to the American Public . Have a low,ant to flat tax that treats everyone the same. Certainly, this does not do everything but it moves the tax burden into a much more fair place. We think both individuals and corporations should have to face the burden of the tax policies are you david Everyone Wants less taxes. The question is, how much do you want to pay for that . Michael i am not sure Bernie Sanders does. Showing have a chart the taxes under reagan and bush. The deficit has gone up every single time. , when you think this time we have never done it in the history of the country . Michael there are two totally separate conversations. America is spending itself into oblivion. When you look at what happens on spending curbs, we dont have money to spend on anything other than Social Security medicare, medicaid and interest on the debt. There is no money for education or National Debt or the other priorities. That is a separate conversation from the tax code. The tax code is about taking the money from american people, whichhesitant to do we should be hesitant to do, and taking a minimal amount necessary to fund the constitutional role of government. We have a spending problem in this country that drives our longterm debt and annual deficit that is unrelated from a tax code. It needs to be simplified and promote growth because growth will give us flexibility in the space to get our spending programs under control. Sherry great to have you with us. Thank you michael needham. Ceo of Heritage Action for america. Coming up, futures surge in the first session on the exchange and what this means for regulation in the world most popular cryptocurrency. That is next. This is bloomberg. David this is Bloomberg Markets balance of power. Andry Global Markets ceo distance. At once we had 12 million in purchase. 22. Re up to about they represent various users. We will not see clarity for quite some time. You can see from the 12 on the launch up to 22 on the trading day. I think we will see that build over the days and weeks to come. Sherry we welcome our colleague julie hyman who has been reporting on cryptocurrency. We are expecting to see more bids on bitcoin easier. Julie this is now a regulated way to trade bitcoin, or a proxy for bitcoin in the form of bitcoin futures. Introductioncmes on an end stack early next year nasdaq early next year. We dont know exactly who is trading the stuff. It is 22 registered firms that are allowing trading of it, but on behalf of home . Whom . Perhaps they are waiting to see how the first few weeks of trading go and eventually we are in theto get approved industry. That could further speed adoption by retail investors. David we also dont know exactly which regulators will be involved. Initially there were fcc applications. Now we have futures trading. You go back to the fcc now . Julie it is expect team that many who file for approval will refile. Not all the etfs that were applied for work futures. Some were actual bitcoin back like the one introduced by the winds boss twins. Winkelvoss twins. The futures market is regulated, because it is seen as a commodity rather than a currency. A bit ofstill complexity surrounding this. What is clear is that this is a big turning point and milestone, the futures trading in terms of trading. I spoke to the chair of the regulation practice at a law from that deals with this. He says bitcoin itself is not thatated, that is why now you have a regulated market that is tied to bitcoin, it is such a big deal. It might give more of a Comfort Level to some market participants. Sherry the big fear before the launch today was that we would see a huge amount of shortselling and this could make that easier. What are the chances of that happening . Julie it is not happening yet. We are getting big swings, but we have seen a big gap open up between bitcoin itself and bitcoin futures. Futures trading at a substantial premium, larger than typical. I think you have a chart of that that we can call up. There you see the gap between the two. I was emailing with a trader who was trading this, and he says one of the reasons we have seen this gap open up is because there arent any shorts or not very many. You have Interactive Brokers group which is one of the firms that is allowing futures trading platform. Form even for people who would like to short, it can be expensive to do. You are talking about a 44 margin to trade bitcoin futures. In order to borrow to sell short the futures, you are talking about an extensive proposition. David this is what i have. It is legitimizing the futures market in bitcoin but has nothing to do with the underlying thing on which is how much it is worth. If you register to sell stock, you have to prove you have assets. There is nothing guaranteeing any underlying value of bitcoin. Why is this legitimate . Legitimizingnot underlying bitcoin, but if you are a regulated entity and you have certain rules that are put ann what you can trade as institution, than the fact that it is now in a regulated market makes it potentially assessable to you in a way that it wasnt before. You also have a backstop because trades,are clearing the they are acting as counterparties. There is a regulated counterparty. If you are training actual bitcoin, there is no regulated Counter Party and no one to back it up if you see big swings. That is another difference here between the futures and underlying. It does not necessary legitimize under, but it offers a marketplace for something tied to bitcoin. Thaty maybe go forward in very julie hyman, thank you so much for that. He got up to that we will talk to k that kimoon ban from paris. This is bloomberg. Sherry this is Bloomberg Markets balance of power. Im shery ahn. And im david westin. We turn to mark crumpton. The man is hospitalized in Police Custody after a pipe bomb he was wearing detonated in a pedestrian tunnel inside the times square substation this morning. The suspect was identified, and he suffered burns while three other people sustained minor injuries. Cuomork governor andrew called the device low tech he was adamant that the city remain after subway lines were temporarily shut down. Work. s go back to we are not going to allow them to disrupt us. That is exactly what they want. That is exactly what they are not going to get. Officialsenforcement say he came from bangladesh seven years ago with a type of preferential visa of people with relatives who are u. S. Citizens or permanent residents. Wildfires inf the Southern California is moving north. Hundreds have fled their homes in Santa Barbara county. So far, nearly 360 square miles have burned in tens of files tens of thousands of residents are under evacuations. The blazes are only 15 contained, and are considered the fifth largest in california history. European union foreignpolicy chief says the eu reiterated its position on jerusalem during talks with israeli Prime Minister benjamin yahoo . Benjamin netanyahu. They recognize jerusalem as israels capital. Ring the exchange we had with andPrime Minister, myself the Foreign Ministers underlined that lasting peace between israelis and palestinians remains a priority for the European Union. We have a very much united position. Netanyahu was on his first visit in 22 years. He said recognizing jews some was jerusalem was stating the reality. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. In this. Annual climaterd days is underway in paris, bringing together World Leaders to bring the Financial Advisors into the fight. It pushed Climate Change to the talks. Nt of the global it is a position he held. We are joined from paris. Thank you so much for coming in. After President Trump withdrew from the Paris Agreement was that cities, states, and private sectors would continue the efforts. How much momentum are you seeing in paris, and will it be enough to upset losing offset losing the United States . Kimoon this is a conference on Climate Change. This was the second anniversary of the paris im change of agreement. I applaud president mark cohen the president s this commit to mobilize necessary Financial Support for developing countries. It is important that we agree on mobilize hundred billion dollars by 2020 to help for climateountries change. At the same time, we should mobilize market and institutions and globalize and manage the banks to provide the necessary Financial Support for infrastructure. It should be ecofriendly. This summit being held will really accelerate and revitalize the commitment which was shown years ago. There is no time to wait. This really was your project. You were behind this 100 . You enlisted our boss to get it done. What are the aspects of this one of the aspects was how youre doing and whether we were making progress. As you look at it, are we on track for what you would expect russian mark expect . Kimoon we were able to agree on Climate Change. We cannot stay on like this way. We have to accelerate our commitment. Michael bloomberg has been envoy, as a special mobilizing cities around the infrastructure ecofriendly. I am deeply concerned about the u. S. President has announced to withdraw. At the same time, there is room for optimism. There has been Ground Support from grassroots of the american , including major states like california, washington, oregon, and massachusetts, who are joining in the campaign for Climate Change. Than u. S. Cities and more 1000 officials are in the organizedd having campaigns. This is a source of optimism. Leadersame time, world should send a strong message to the people to make our economic operations more ego friendly. Isrry President Trump sending a strong message when he recognized jerusalem as the capital of israel and planning to move the embassy there. We just heard from the u. S. Ambassador to the u. N. , nikki haley, talk on fox news yesterday about how israel bashing in the Uns Security Council has been a problem to take a listen. To treat palestinians and israel hes fairly. We hope they both come together for a peaceful solution. We do to support them. It is starting now. Sherry how do you respond to that . Kimoon it is not israeli bashing. As a former general who had been theing to facilitate twostate solutions and also as , i am joining those voices that this issue should be settled between israelis and palestinians. I have been urging the president s to agree on solutions there should be two states, israelis and palestinians, side in peace and harmony and security. The u. S. President must hear all the voices from around the world, including the European Union and other countries. This should bring a settlement. David whats go back to south korea. North korea has been very much an issue globally. As you look at the situation with north korea, what is the path . Is there a path to peace with north korea that does not include an Nuclear Armament in north korea . I believe there is a possibility of addressing this way. In a peaceful aboutre concerned statements about strikes. It is important that however we are deeply concerned about north koreans have been doing, it seems to me the north koreans may be looking for a way for a solution. People to behe l. Reful an their messages also for a peaceful solution. A military solution can easily be initiated, but it is not sustainable, as we have seen in many different cases. I am urging a peaceful solution. The presence of south korea visiting china, i hope they can find common strategies how to resolve this issue in a peaceful way. Sherry mr. Secretary, the first time i met you was a decade ago. That was when the Six Party Nuclear talks were ongoing. When you are talking about a peaceful solution, are we talking about a multilateral, show me if you can. Most ideally it should be with north korea. I also expect north korea, all in thees, china function together. We must globalize effective means of communications. Sherry why isnt china doing more . I met the chinese as the headst month of state of government. He also assured that the Chinese Government will be implementing resolutions of north korean sanctions. As a neighboring country, he hasnt overwhelming share of north koreas trade. If china can still be the only country who can really play a decisive and overwhelming role. Chineseto have the continue engagement. Sherry mr. Secretary, thank you for your time. From paris where he is at the climate meeting in paris. David as theresa may continues talks, what is the labour party thinking . Well hear from chancellor John Mcdonnell who is next. This is bloomberg. Sherry this is Bloomberg Markets balance of power. Im shery ahn. David and im david westin. The would be chancellor John Mcdonnell is urging banks to lay the ground. Momentum asd theresa may struggles to recover her 30 her authority. Today, the chancellor spoke exclusively to bloombergs anna and gave an idea of public ideals. I have at all these questions thrown at me. I have never raised capital controls. No run on the pound was a question to me. There wont be a run on the pound. No wargaming . Proposal,look at the i think it will be a strong pound under us. Well give certainty that the economy will be strong. Of course, when we go into sure. We want to make no run on the pound, quite the reverse. For many people, it will be the first time they have had a marxist writing the treasury. Socialist. Are different ideas that come together. Ofre are elements marxism, democracy, how you manage your government in redistribution wealth, and tackling inequality come up to play with education. I am body all of those trends embody all of those trends. We have drawn on all of those elements that contribute to this to ensure we are successful. One bank referred to the potential for labor government creating john i think they need to know what we are all about. What is interesting, when we have conversations, people go weight reassured because they know what we are about and what we are cheating is an prosperous economy and sustainable. David that was bloombergs and edwards interviewing John Mcdonnell from london. Why a straight ahead, deep south reddit state is looking purple in a special election for Jeff Session Senate seat. We will get the latest on the race. This is bloomberg. David this is Bloomberg Markets balance of power. Im david westin. Sherry and im shery ahn. Alabama has become an unlikely swing state in a deep red state. The senate rate is a tossup. The special election has attracted National Attention over Sexual Misconduct allegations over republican roy moore and millions of dollars for his democratic opponent who just got a lastminute boost from alabamas other senator. I cannot vote for roy moore. The state of alabama deserves better. We have a lot of great republicans that could have won and served honorably. Sherry we are joined by josh green. Where are we in the polls right now . Roy moore ahead of jones . Poll that has doug jones up 10. The problem is, alabama is not a swing state. It is not a state that pollsters usually pull because the l. Ection pol add to that, you have a candidate like roy moore, who has been accused of child most station. You have President Trump weighing in. The pollsters dont know exactly what the elector is going to look like. Pending on the assumptions you make, either write more roy moore is up or doug jones is aired we wont know until tomorrow night. His could end up being a close race. David there was a piece in bloomberg that said steve bannon could come of the hero. Explain why it would be steve bannon who gets credit is for them or prevails. If you go back three or four roy mooresoks like candidacy will come to a sudden end. Reports include five women have charged him with sexual molestation. You had national republicans, including Senate Majority leader Mitch Mcconnell saying more needed to drop out. Media,n had conservative sean hannity for one, had a troubling interview with roy moore and gave him a 24 hour ultimatum to explain the charges or get out. At that point, steve bannon and his affiliated media apparatus got involved and convince sean hannity not to throw roy moore overboard. With talks in the white house and with the president , the line was pushed to not throw roy moore overboard. Lets let the people of alabama decide. We have seen a drastic swing in the polls. Roy moore leads in these polls. It is likely youll have steve bannon to thank for his revival. Sherry how much of a conundrum is this for the gop . If you get roy moore in the want towho will associate themselves with three ray moore . Some clout say he should withdraw. If he gets in the senate, he will be submitted to an ethics investigation. Ago, people like Mitch Mcconnell were saying if he comes and gets seated, we will have an matt Ethics Committee and throw him out of the senate. That has been promulgated now that donald trump has endorsed more so wholeheartedly moore so wholeheartedly. A may be stuck with him in the senate. As many republicans and most democrats will tell you, that could be a problem come election time in 2018. Roy moore is not a problem that is going to go away, a very controversial figure, whose difficulties could lead to other republican candidates. David how remarkable would it be if a democrat were elected to the senate . Donald trump beat Hillary Clinton in the election. The percentage of alabamas against abortion. Of more is actually open to it. It would have been absolutely unthinkable two months ago to tell somebody that a democrat could win a senate seat and alabama. Likely ofthe least all 50 states where a democrat could prevail in a special election. Yet, here we are the night before and it is a possibility. Sherry how important will turn out be . Republicans will not to vote against roy moore and let doug jones, but they still wont want to vote for roy moore either. It is important who turns out and for what reasons. The thinking is that a lot of suburban democrats will be very discouraged and not motivated to turn out for roy moore. Some may vote for doug jones. I think a lot will stay home. Win andat cannot alabama without tremendous support from the africanamerican community. Former president obama has recorded a robo call on doug jones behalf. If there is a high africanamerican turnout, that could give doug jones a chance. There has never been a race like this in alabama, and we dont know who will win. Sherry josh, thank you. Sign up for the balance of power newsletter. David coming up on what did you chief economist at indeed. Live from new york, this is bloomberg. Scarlet it is a lemon 00 a. M. In San Francisco and 7 00 p. M. In london. Im scarlet fu. Julia im julia chatterley. Welcome to Bloomberg Markets. Scarlet we are live and bloomberg World Headquarters in new york. Here are the top stories we are covering on the bloomberg and around the world. A wild ride for bitcoins. Bitcoin. Futures surging in their debut session on the seatbelt exchange. Central bank finance a bonanza. In infrastructure. Why one big player is going along by focusing on oil transports. We have got u. S. Markets closing in two hours. Lets get a check on where markets are trading with julie hyman. Major for all three averages, the nasdaq continues to be the leader. That is the trend we have seen since the rotation out of tech has reversed. The nasdaq has been leading entire we have Energy Stocks stronger today, along with information technology. Looking at the biggest individual contributors