Years. We have been a crossroads in the past, and unfortunately, we have usually taken the wrong fork. Tonight, ladies and gentlemen, you took the right turn. [applause] imperilhis win could the gop agenda in congress, shaving down Mitch Mcconnells republican majority to just one vote. House and Senate Negotiators are said to have reached a tentative compromise for the tax overhaul. The latest, we go to kevin reporting. Wn the lets start with the alabama race. , what do weoss tabs know about who voted . How did women vote . Kevin speaking with political types in alabama, who said that overwhelmingly, turnout, particularly amongst the Africanamerican Community, helped fuel doug jones to victory. He had top surrogates, including nba legend Charles Barkley getting out the support, trying to drive out turnout in urban areas, including mobile, alabama. Some areas have a turnout, surpassed and even matched the turnout in the Africanamerican Community for when we saw the obama mccain election back in 2008. Theres a turnout component to this, but theres also a lack of turnout from the republican side. A lot of folks i spoke with, just anecdotally, conservative voters who were not enthused at all about the prospect of voting for judge roy moore or a democrat. They largely stayed home. And the fallout from this is still reverberating through washington. President trump said quote unquote that there is very close to finally getting tax reform by the end of the year. My sources tell me that will be done in the early part of next week. Is going tomajority have applications next year as well. Julie i want to get to the tax discussion, but i want to ask you one more question about the folks who voted for jones or against roy moore. What kind of mobilization efforts was there on the ground . Africanamerican starting out, women turning out to vote, how much of that was a result of democratic activists on the ground and how much of it was the result of this distaste for the republican candidate . Kevin both. With anll you, speaking official at Huntington College backgroundis is the type of counselor around here. There were actually Democratic Students who stated on their christmas break in order stayed on their christmas break to get democrats out to vote. Into thens try to tap human total community and the Baptist Community in the state, but i can tell you, i spoke with person after person who told me that the conversations they were having around the dinner table, were conversations about the allegations, which judge roy moore denied. But clearly the message in alabama was one that folks in washington are still listening to today. David kevin cirilli, chief washington correspondent, thank you. We go now to some tape where President Trump come just moments ago answering question about taxes. President trump were going to get the vote, but i will say, we have to get more senators and more congressmen that are. Epublicans elected in 18 we will see a lot more of what we are doing. Think we are doing a lot. This is the biggest thing we have worked on, this also has to do with other subjects, as you know, i wont mention the subject, but there are some jects that are very vital im talking about beyond pure tax and tax cuts. Im very excited by a. Its one of the biggest pieces of legislation ever signed by this country and i can tell you that everybody around this table , we are very, very excited about it. And thank you all very much. Thank you. Julie that was President Trump commenting following a luncheonette which he is trying to once again jen up support for the tax bill, or confirm support for the tax bill. Making comments about that following the luncheon. He will be speaking with several families he says will be positively affected by a new tax law. Debate asn this tax well as the special election in alabama, we are joined by a veteran of republican politics, john feehery is joining us from our washington office. We just heard the president talking a little bit about whats going on with this tax of eight and the latest we heard is some kind of tax deal on the table. We already know the pressure is high on republicans to get this done. But it seems that of his election now has ratcheted up that pressure even further, if thats possible. Mr. Feehery republicans need to get some accomplishments on the board. This election in alabama was botched by the republicans, they lost it during the primary process and a nominated the wrong guy. I think roy moore was one of the worst candidates in the history of politics. Allegations had the going around shopping malls when he was 30 years old, he also was a bad candidate in the modern times. I thing that he said consistently alienated just about everybody. For the republicans, they are not quite sure how this election is going to go in 2018. They have to put some accomplishments on the board, not only to boost their chances, but if they lose it to the house and senate, at least they got something done in the first two years of the trump white house. Was a bostony it election. How much of that was the direct result of steve bannon . We have Anthony Scaramucci on on bloomberg and he served for 11 days as to medications director and he had this to say. He waited at Steve Bannons feet. Dont underestimate steve bannon. Hes a warrior, and thats one battle. Theres a bigger war. Frankly, bannon is massively defeated by america. You dont want this level of disunity and this level of contention. That was a good day for america, yesterday. In the sense that ban on lost. I dont begin was a great day for the Republican Party either way. David a good day for america because steve bannon lost. Do you see it that way . Mr. Feehery i dont think you can blame global consultants, up to blame the candidate. Bannon did back moore, but you cant blame bannon. This does have ramifications for other primary challenges, the neighboring state of mississippi, for example. There may be a primary challenge against roger wicker, it was a great candidate. Likeey nominate someone chris mcdaniel, there can be another problem for the republicans. Hes every bit as volatile as roy moore. Hopefully republican primary voters will learn from this, if you put up really flawed candidates, theyre going to lose. Roy moore was a terrible candidate, and he lost. Julie it wasnt just alabama. We got virginia results as well. What is the brand of the Republican Party at this point . I can ask this of democrats as well. You have the trump brand on the one hand that doesnt seem to have ideology behind it and then you have more traditional republican brand, but where do republicans take this at this point . It seems like theres no unified message. Mr. Feehery the biggest problem with this president is he is easily distracted. The brand should be a brand that grows the economy, the economy is going like gangbusters. Jobless claims are down, wages are up, unemployment is way down. We have this huge growth is going to happen. That should be the brand of the Republican Party. Instead, the brand is whatever donald trump is tweeting on. If he would stop tweeting, the brand would be much stronger. Virginia was a special case. Its really close to the washington media bubble, they got caught up with all the president s tweets. The other thing about virginia is it is a blue state thats onome more and more fixated Government Spending from the federal government. Hink they wanted that republicans have been against increased federal spending, but virginia definitely was a special case. The other thing republicans have to understand right now, what happened in alabama and in virginia is we are getting killed with suburban voters. We dont do a better job with suburban voters, appealing especially to the soccer moms and suburban women voters. Thats a real problem for republicans. They have to figure out a andtegy to cut deficits those demographics, if they lose those demographics with these numbers nationwide, we are in big trouble. Julie wheres the deficit conservatism fit into that Economic Growth picture and brand that you are talking about . It seems as though with his latest tax bill, thats not really a consideration for many of the folks who are voting for it, or not enough of one to vote against it . Dontehery deficits matter in politics. Only it has a real impact on the economy. If you have a growing economy, deficits dont matter nearly as deficitsf you have causing unemployment or higher Interest Rates. We have not had a connection between deficits and Interest Rates since the early 90s. I dont know if deficits really matter for the average voter. The average voter cares about their job prospects, their ability to make money in the future and their Economic Security. If you can get a platform that is creating more Economic Security for people, you will have a winning platform. David that brings us back to tax overhaul. As you look around the country, i dont see a lot of evidence that the country is clamoring for tax cuts, particularly operable more wealthy individuals. A difficult will it be for public is to sell to the average voter that these tax cuts are directly going to lead to your Economic Security by next fall . Mr. Feehery theres a couple of aspects. 92 of the American People will be able the file their taxes on a postcard. Thats a big talking point for republicans. Giving it should do is bring a lot of investment back into the United States and hopefully, grow the economy even faster. Theou think about it, half country doesnt pay any federal taxes and so the idea of a taxcut Means Nothing to them. I think there is animosity towards the wealthy, because of the wealth gap. Wealthyand anger at the is as high as ive ever seen it. This taxcut ashley doesnt have as many tax cuts for the wealthy as you might think. It does have tax cuts for corporations, and if corporations dont increase wages and only keep the money for the ceos, its going to be a very unpopular tax bill. The number one thing about this tax bill they have to talk about is the simplicity for the average voter and everything have to talk about is bring jobs back and increasing wages. If they can make the sale on those two things, i think they will be successful. Julie we will see if they make that case effectively. Us fromhery, joining washington. Still ahead, how democrats are reacting to last nights results in alabama. Tom perez, chair of the d c, will be with us live shortly. David lets get a check in with the markets are. Abigail doolittle has the latest. Abigail were looking at gains, the s p 500 and the dow putting an alltime highs on the session for a second day in a row. Take a look at the leg lower for the s p 500. Session lows right around in his headlines came out the republicans have reached a tentative tax deal and President Trump saying they are very close. Selle seeing some minor the news action. This could be behind it, the bloomberg g btv 3316, in white, gaining High Tax Companies that would clearly benefit of tax reform is it in place, in blue, low Tax Companies going negative on the day come over the last few days, not going lower, weighing overall in the s p 500. We will be paying attention to this as updates around tax reform happen. And of course, the fed and the fomc decision out within an hour. The 10 year yield down for the first time in five days, down two basis points, presented in green, telling us haven bonds are rallying. We are seeing some buyout head of the news, 98 of the chance of the fed raising rates. Investors thinking the fed can have a dovish tone and thats why are seeing the small rally for bonds ahead of that decision. Julie interesting to see what happens. Coming up, the sec votes tomorrow to decide the fate of Net Neutrality. Votes tomorrow to decide the fate of Net Neutrality. Why they think a role that could be a positive step. From new york, this is bloomberg. David this is Bloomberg Markets balance of power. Im david westin. Julie im julie hyman. Mark crumpton has more. Mark President Trump says an agreement on tax reform very, very is quote close. His comments came as tennessee senator bob corker said he is still undecided on the proposed tax bill. Worker was the only republican to vote against the bill in the senate. The president added that lawmakers are closing in on a new Corporate Tax bill, and that the legislation will be, in his words, extremely impressive. He also said it may allow for trillion dollars to be repatriated from overseas. The british Prime Minister theresa mays brains of bill is in the house of commons for a vote that could be the first one the government loses. Some conservative Party MembersWant Parliament to be able to alter or veto a final brexit deal, if they dont like it. The u. K. Government says its already made concessions on the eu withdrawal bill, suggesting its not planning to make any more in order to prevent a rebellion in parliament over its landmark brexit legislation. 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. Meets today on its proposal to repeal the Net Neutrality rule, the vote expected tomorrow. Congress is watching carefully. One of those responsible is representative marsha blackburn, who chairs as a member of the house energy and joins us now. Questionk the obvious that many people have. How can you be against the rule that says everyone should be treated equally on the internet . It sounds like a pretty good idea. Rep. Blackburn it sounds like a pretty good idea, the what we have to realize is that the obama era neutrality rules putting the internet under the 2 regulation that are intended for telephones, 1930 mile bell regulation. Does to open the internet up to rate regulation and allow the federal governments to actually be at the head of that type, when it comes to the internet. Agrees some things we can on. I think everybody is for a free and open internet. Thats what we want. The internet was not broken, it did not need federal government interference, it doesnt need to be fixed. And we realize that. And we know that putting it back in the posture that it was in in 2015 is the right thing to do. Pi i fully support chairman in the efforts he is making to be sure that we do continue to have a free and open internet. Julie are you concerned at all that we will have different pricing structures and fast lanes, for example . Some of the specters we have seen raised by the rolling back of these regulations . Rep. Blackburn i am not. What you are going to see is Congress Step forward and take some action to put in place some free and open internet rules. No blocking, no throttling, addressing latency, those are proper steps, but they should be taken by congress. The peoples house, by the senate, signed into law by the president. It shouldnt be something that changes every time you have a change of administration or you have a new chairman of the fcc. This is something that congress should address, and i look forward to having us address that. David what is the big rush . You have a republican colleague in the house, mike coffman from colorado who says im not saying where i am on the neutrality, but lets have congressional hearings before the fcc takes action. Is there a reparable damage being done right now . Rep. Blackburn weve been having hearings. Theres quite a body of work and i encourage your viewers to go to Energy Commerce committee. Gov. You can pull down the full information from the hearings that we have had. What we want to do is make certain that investment in the internet picks back up. We want to see broadband expansion. We want to see the codification of a free and open internet. And we want to make certain that these principles are put in statute and that Congress Makes these decisions that they dont change every time you have a change at the federal communications commission. Point, what iss wrong at the current time . Theres a great story out today looking at some of the research you are referring to that the sec has put out and one veteran analyst of the Telecom Industry who we speak to frequently says this is a classic case of garbage in, garbage out. Theres a lot of criticism of this research, that its not Rigorous Research that shows that theres been any pullback in investment. Rep. Blackburn theres always going to be there are always going to be differences of opinion. You had salon magazine saying that the Net Neutrality 2015 rules are a scheme for rate regulation. The ricoh has a great article that out today about what you can expect from the internet once it goes back to title i and information service, which is where its always been classified. What you do not want to do is , and thennder title 2 have an open to rate regulation and taxes. People of rather telephone bills and they see that string of taxes that come about. They do not want that. They want a free and open internet, it isnt broken, it doesnt need the federal government interference. Its working just fine, innovation is taking place. A by yourould ask position. I talked to your other subjects and your returned you are concerned about the little guy. Theres investment being done by big guys, google, amazon, the really big people, facebook. Went to make sure that theres room for the little guy to grow up . There are three or four companies that are increasingly dominating the internet. In. Blackburn we see this such Services Like google, twitter, and facebook. There is concern on that. If we cant find a free and open internet principles and address the things that people wants no blocking, no throttling, latency if we put the emphases Going Forward as we look at infrastructure and broadband expansion, getting why people online, thats you allow people to innovate if we move into the Health Care Technology sphere. With greater innovation as we move into artificial intelligence. As we see things that are happening with the taunus vehicles. Those going to have in edge provider spaces, in those utilization spaces, a lot more innovation that will take place. Lets put it back to where it was as an information service. That remainsrtain free and open, and that its like light touch regulation, which is what weve had for years, until the 2015 rules. David congressman marsha blackburn, good to have you. Now we going to talk to tom wheeler. Tom wheeler will be on Bloomberg Technology at 5 00 eastern. Julie lets get back to the massive upset in alabama. Y has largervictor ramifications for President Trumps policy agenda and the growing Democratic Party. How will the party heart is that energy and what will it mean for the larger strategy as we approach the midterms . Lets put that question to tom perez, with us from washington. Thank you for joining us. Weve heard a lot of different on this reason alabama, but certainly the weaknesses of the republican candidates were an asset for the democratic candidate. How much can you really take away from this victory for doug jones . Mr. Perez we saw a record turnout among africanamericans a doug jones outperformed barack obama. Africanamerican women, in again aar, were once linchpin to success, as they so always have been. Doug was talking about not just left versus right, he was talking about right versus wrong. He was talking to business andle and factory workers about the things that kept people up at night. Roy moore wants to litigate the culture wars. What alabama has taught me, i think, on the heels of virginia and new jersey and a bunch of other races, is the democrats can win anywhere and everywhere, as long as we have great candidates, we are organizing early and often, and thats what we did at the dnc for all of these races, we invested almost 1 million in alabama alone, and we get it early on, and we did it inconspicuously, because it was dougs race and we want to support him. When we do that and when we leave with our values, we talk about the issues that people care about, thats how we win. Look at 2017. We won special elections in oklahoma and in other areas that are beat red. Beet red. As we organize early and feel good candidates and lead with our values. David you are going up against candidates that were pretty weak. One of the things that strikes me is you have some divisions on the republican side about exactly where the leadership is. I dont know where democratic leadership is i dont know what the central democratic message is its coming forward, which is surprising to me. Whos was the leadership of the Democratic Party today . You asked two questions about message of leadership and the voters of virginia new the message, because we talked about health care. And the overwhelming thing on peoples minds in the exit polling in virginia with health care. We believe that health care is a right for all and not a privilege for a few. There is republicans believe that you can take Health Care Away from anyone, and thats why one of many reasons why Ralph Northam one there. Doug jones is talking about Kitchen Table issues. His line was Kitchen Table. It was talking about creating good jobs, make sure people have access to health care. What the Democratic Party has been talking about, whether his leaders here in washington or grassroots leaders, the women who helped lead the resistance. What im inspired by is the energy all across america. Whoave leaders and mayors are leading efforts. We have governors out there. We have grassroots activists, faith leaders in alabama who helped doug jones to victory. To do is Democratic Party is take his Incredible Energy that out there and translate it into sustained electoral success, and thats exactly what weve been doing in 2017, building on 50 state infrastructure so we can win everywhere. Look im curious, if you at the last few elections weve had these dramatic swings from political poll to political poll. When you are looking at sustainability, is moderation part of that . Is a moderate message part of that . Progressivet more and risk these continued swings every time we have an election cycle . Mr. Perez i think good leaders are good listeners. I did a lot of listening and out in oklahoma, there were three special elections for state legislative seats this summer. Seat, two state seats. The democratic candidate won all three races, because they went out and listened to voters. One of the issues, the number one issue on peoples mind in all three of those races was education. There is Certain School districts in oklahoma right now where the kids go to school four days a week, because the Republican Leadership has starved the Public Education system. Same thing is happening or similar things are happening in places like kansas, where Sam Brownback thought you could starve the beast and it would lead to great growth. Thats one reason why last year, kansasough trump won 514 , democrats picked up 14 seats in the state legislature. When we are out there listening and speaking to the issues that , whetherle up at night its health care, which is an issue everywhere, whether his education and access to good quality education, whether its climate, we are speaking to women across america. We have said that there are certain issues sexual harassment, that transcends politics. When you have violated that cigarillos, whether you are republican or democrat, there should be consequences. The appalling silence of the Republican Party on this issue, whether its misconduct by trump or misconduct by contrast in farenthold, that appalling silence, roy moore what can i say . Julie to be fair to Many Republican leaders did speak out against roy moore. We have to leave it there, we have to move on with the conversation. Tom perez, dnc chairman. Thank you for your time. David lets hit the headlines from bloomberg first word news. For that, we have mark crumpton. Mark the suspect in mondays attempted suicide bombing will be arranged from his hospital room and federal courthouse. Is charged with five counts, five federal terrorism counts, including the use of a weapon of mass distraction and bombing a place of public use. On capitol hill, Deputy Attorney general Rob Rosenstein faced a barrage of questions about special counsel Robert Muellers russian investigation. House republicans want information about what they call an antitrump bias at the fbi and the justice department. They try to raise doubts about the motives of those looking into Russian Election meddling read when asked by new york democrat if he sees cause to fire mueller, rosenstein responded quote no. French president Emmanuel Macron welcomed five Central African counterparts for a meeting about l force. Alled g5 sehe the aim to fight islamic militants as well as organized crime and human trafficking. President macri on macron has taken the lead to make them for survival. He said saudi arabia pledged nearly 120 million to the cause while the United Arab Emirates will give more than 35 million. 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. Julie thank you, mark. The house and Senate Negotiators reached tentative compromise the tax overhaul, according to a person familiar with this conversation. To get a still need cost analysis of the agreement and any to put it in the statutory language. It is not get it done deal. Lets get the latest from Bloombergs National political ilporter seleka for sah kapoor. Where does this put the odds as we head into the end of the year . Sahil im told there is a tentative agreements. Nothing is going to be final until was the legislative text. Corporate tax rate cuts to 21 . The individual top rate is going down from 39. 6 percent to 37 . Taxstate and local deduction is being repealed, but with a 10,000 exemption they can be used for property and income taxes on the state and local level, thats a significant shift when the 10,000 exemption was only available for property taxes previously in the house and senate bills. The estate tax is not likely to be repealed. They are looking at doubling the exemption from 5 million to about 11 million. Per person. Those are people who are not going to have to pay any estate tax. The passthrough entities are going to get a deduction of up to 20 , the individual mandate under the of is going to be zeroed out, effectively repealed , cutting off one of the legs of st achievementste in the last generation. Keep your eyes peeled for a final agreement text that we should be seeing. The beginnings of today and possibly legislative text by the end of the week. Get thisns need to done, especially after the stunning defeat in alabama, which is going to cost them senate the at the end of this month. Julie thank you for giving us that update on where we stand. Kapur, keeping us apprised. David President Trump is delivering what he is calling his Closing Argument at the white house. Scott hodge is the president of the Tax Foundation and earlier, he was involved in similar legislative it legislative initiatives and he comes to us today from washington. Good to have you. Mr. Hodge thanks, david. David it strikes me that you know better than just about anybody who is not in congress. Did you hear what it says and does that sound right . 37 of individual, and is that consistent of where you think this will end up . Mr. Hodge thats for a closer where we are going to be. I dont have as many details as the insiders on the conference, but i think that if you look back six months ago and said this is where we are going to be in this tax reform, i would have been shocked. Pleasantly surprised at the direction of this, especially on the corporate side. Cutting the Corporate Tax rate i 21 or 20 , for that matter will take the u. S. From having one of the least competitive Corporate Tax systems to having one of the most competitive in the industrialized world. It shouldreat sign, do wonders for u. S. Competitiveness and the ability of u. S. Corporations to compete abroad, and for workers in america to have stronger wages and better jobs. Corporations dont end up paying the stated tax rate. They pay a lower effective tax rate. 21 ,not as low perhaps as it might be between 25 and 30 . Why is it so important to get that tax rate down . Mr. Hodge headline rates matter, we are also in a tremendously competitive global environments, where every other country on earth has gathered cut their corporate their Corporate Tax rates far more than we have and they have deductions and credits in amtech systems, so the effective tax rate of those companies are even lower than u. S. Companies. We have to get back into the global game. This will do a lot to make u. S. Companies more competitive. David one of the things that is really being debated, and you study this over the years, is whether this extra money going to corporations is going to end up in wages and hiring the way you suggest, or is it going to end up in the pockets of shareholders . You have ceos admitting we are going to buy back stock and pay dividends, things like that. Why do you think this will actually end up in higher wages and more peoples pockets . Is the corporate trickledown . Mr. Hodge theres a lot of economic empirical and it is to show the lower Corporate Tax rates do translate into higher Capital Investments. Those Capital Investments improve productivity workers and more productive workers end up earning more. Highlywhy you see capitalintensive businesses paying a lot higher wages than serviceoriented businesses or retailers. This will do a lot for wages in the United States. Workers will be more productive and their Living Standards will grow as a result. Julie what do you think about perception of this bill . Not in washington, but with the voters . It doesnt seem as though the message is really getting out there and that there is a high favorability rating of the tax bill at this point. Do you think that changes . You look at that last tax bill, even people who got cut thought that their taxes went up. Mr. Hodge perception is very difficult with things like this. They really wont be until people see their paychecks in 2018 and beyond where they really understand the nature of the tax cut. They want to do their taxes until 2019, that makes it even more difficult. It is going to take a lot of salesmanship in the years to come, to be able to convince people that indeed, this was good for them. Until they do the math, people just wont believe it. Thanks, scott. That is scott hodge, head of the Tax Foundation. Julie coming up, tmobile is jumping into the tv streaming space, but is it too little, too late . We ask this chief operating officer mike sievert, next. From new york, this is bloomberg. David this is Bloomberg Markets balance of power. Im david westin. Julie and julie hyman. The start of the hour is getting a boost from apple. Shares are rising more than 31 at one point today, they are still up 28 , the most essential march of 26. Are finisar is not exactly apple. I dont know what they do. Emma they are a Major Technology company, and they make the tech that helps the facial recognition features that x. Saw in the iphone facial expressions and apple is spending about 400 million to help them produce more of this technology. Its actually going to allow finisar to reopen in texas and employer about 500 extra people. David ive never heard of it, but i have it or might have the iphone x. I didnt know about the emoji thing, which my 15yearold loves, but theres metals were to be issues with suppliers. What about finisar . Emma apple has had those issues with suppliers and there were blamed for delays in getting iphone x to people. We saw the huge demand for the iphone in the first quarter, which is the quarter we are currently in now and we were chart which shows you the huge demand for the iphone, its expected to be a blockbuster one by 88. 3 million iphones, and a lot of them will be the new iphone x. There is this idea that finisar has a lot to live up to. Canlso shows how much apple be a kingmaker when it comes to particular suppliers. If you take a look at the chart we have a finisar stocks from the beginning of the year until yesterday, it was down about . 30. And then they get this big boost from apple and that helps them pare some of their losses for the whole year. We only the one of finisars over 400s lost out million and they are doing prevented today as well. That stock is down about 15 . Julie if apple is frustrated, they are stepping in, by not getting the component they need, they are stepping in to take pretty dramatic action to take care of it. Tmobile is venturing into the paid tv arena and today, the company unveiled plans to launch wireless tv across the United States in 2018 and it is acquiring layers three tv to help create that. We headed to bloombergs emily chang who is standing by with more. Sievert joins us now from denver, colorado. What do you think tmobile can add to the offline tv market is not already out there . Mr. Sievert this is a market that is just filled with pain points. Ins the most hated industry america, eight of the top 10 companies with the Worst Customer Service ratings in america are paid tv companies. Uncarrierand is the , we are poised an incredible way to make a big difference in this 100 billion paytv market. Emily at t and verizon have been exploring the online video market as well, i step beyond the slowing wireless business. How is this different than what they are doing . Mr. Sievert what you see from at t is more of the same area there way of getting into this was to buy directv, a traditional satellitetv company , and then create bundles that people dont want. In order to get a decent deal on at t wireless service, you have to drill a satellite dish into the side of your house and be fed linear one way, uncontrolled tv services from outer space. Its no wonder people are leaving this industry in droves. Of 2 toegative growth 2. 5 , but that doesnt tell whole story. Nzllennials and ge customers are abandoning oldfashioned linear tv like satellite tv. At t is entirely wrong. But we are essentially offering to do is bring together the best of mobile video and home tv, and creates a thing that is totally disruptive in a market that needs disruption really badly. Jon lester, your com is saying he expects the deal will close in a matter of weeks. What are your regulatory concerns, given the dojs opposition to at t time warner . Mr. Sievert we dont expect any. We will close right after the new year. This is really exciting for us. Im coming to you from denver where we just met with the team at layer three tv, and were going to be one of the key ingredients of the new tmobile strategy. What Incredible Technology and what incredible team. We are going to build a service that people have never seen before. Think about the services that we are forced to live with today, with todays linear tv. You get a Program Guide and a deep have Remote Control and bloop your way through to try to find things. It pales in comparison of social media fed mobile video that our customers love. We are going to bring together these worlds and make tv not an island of its own and change things up. Aily the possibility of sprint tmobile tire has been simmering for years and it still hasnt happened yet. What is the status of that, and what are the chances of it happening still in this realtor environment . Mr. Sievert we looked long and hard at it, and its a shame it didnt come through. There were some great benefits to a merger like that. We were looking at layer three tv, and the launch of tmobile into the tv experience, with or without that deal. It made sense of we did that deal, it made sense by itself. Just thisreason, its marketplace is a market thats moving way too slowly, and its not serving customers needs. Market and billion we are in an incredible position to disrupt, as standalone tmobile. A sprintu are saying tmobile merger is completely off the table and will never happen. Im not saying that. Im saying we looked really hard at it, and it didnt happen. But we are doing now is a team is we are doing what you expect us to do. We are focusing on running this Great Company, and it is a Great Company and a great space. Were the only ones the Service Revenue growth and we just finished 18 quarters of acquiring more than one million subscribers a quarter. And the main thing people need to now is as you look at tmobile is a Standalone Company , all of these worlds are converging. We like to say that all content and communications are landing on the internet, and the internet is transitioning to mobile. Here we are as the leading and only growing mobile internet company. We are in a great spot. Emily tmobile coo, mike sievert. Back to you. Terrificat was a interview with tmobile coo, mike sievert. The fed,rning to markets gearing up for the last fed Rate Decision of this year. The fomc widely expected to raise rates when it concludes the twoday meeting today. Outgoing fed chair janet yellen will also deliver what is expected to be her last News Conference before heading over the reins to jay powell. Is jeanna smialek. Even though the fed is excited to raise rates today, i have a tough year ahead of them. As you pointed out, on the one hand, their policies have perhaps helped contribute to a robust job market with a lot of people getting jobs who might not, but at the same time, they dont want things to overheat. Jeanna absolutely. The story i wrote, i talked to a really interesting guy, makes ito, who is a perfect example. Hes been in jail for 27 years and got a year ago yesterday and with any months, he was working. Thats a testament to a tight labor market. I want hand, you have people who are human face of the fed can potentially help by keeping rates low. On the other hand, they dont want to let inflation get out of control. And headline unemployment is looking really low. They have this on the one hand come on the other hand conundrum on their hand as they enter 2018. David we have another chart that shows the rate increases across the board. The increased fairly steady. At the same time, the shorter the curve has gone up. The market believes the short end is going to go up, he doesnt believe that theres longterm growth going on, because its really flattening out the curve and the white line is the 10 year. Is another conundrum for them . Jeanna the flattening of the yield curve is going to be an important story to watch going into 2018. Ghana,tterm rates of when you look at the long end, its not moving in that could be because of inflation, it could be a bearish view on growth, it could be that the European Central bank and bank of japan are still snapping up government bonds and a tolling down longterm yields. But we do know is that the fed has been really hesitant to roil financial markets. A lot of people might see that as a signal that a recession is coming, and that could be a big problem for markets. I think the story to watch. David thank you so much, Bloomberg Jeanna Smialek joining us from washington. Julie a brief news item crossing on his ongoing situation with 21st century fox and disney in a potential deal between them. 21stding to our reporting century fox is going to retain its real estate portfolio, including the 20th century film and Television Studio lots in los angeles. When it sells a chunk of assets to disney, thats according to a person or people familiar with the matter. Interesting that they are keeping that real estate. David i spent a long time working with bob iger, they dont need more real estate, they need the franchise. They can always find real estate. Coming up, the bloomberg fed special at 2 00 p. M. Eastern. We have the latest analysis and ,eaction from randy krasner diane swonk, and more. Plus, Janet Yellens last News Conference as fed chair at about 2 30 p. M. Eastern. This is bloomberg. Amrlet live in manhattan, i scarlet fu. This is the fed decides. On Bloomberg Television on bloomberg radio, in less than five minutes, the Federal Reserve will release his last Monetary Policy statement of the year, heres what you need to know. Unless every economist nus trader has it wrong it, the central bank will probably raise Interest Rates in a few moments, expect an updated dot plot an Economic Projections as well. Janet yellens finale as the last scheduled press conference as fed chair. Shes leaving the successor in good shape. And jay powell may still be tested if and when phil knight Inflation Forces the fed to move faster than expected. Im here with my cohost each and every fed day, tom keene. We convinced you to stay beyond your bedtime. Tom it has to be great conversation on where the fed is going. Scarlet we always have great conversation. Tom this time around is the real deal. Its a presumed rate increase, but much more. Scarlet it sets the scene for 2018. Tom i will be amazed to see how she handles this supposedly last press conference. Scarlet you think shes going to Say Something different . Tom she might break into tears. Scarlet reporters may break into tears. Tom we have great guests, including former governors michigan mishkin. The vix pretty much on, 929, with the heels, 2. 37 . Thee basis points lower on 10 year yield, one basis point on the twoyear and that was the benign, relatively benign inflation today. Lets go to the spread, the eight 910 spread. To 55. 5, the yen strength as the dollar is turning in weaker on dxy. I would go gold up a little bit of the recent low as well. Its very good to have you with us on bloomberg radio. Good afternoon. Tom good scarlet its good morning somewhere. Tom good morning in asia and the digital audience worldwide, good morning. On television, we bring you worldwide with wonderful guests, rick mishkin, the former governor of chicago, diane swonk is with us and the vice chair is with us as well. Whats the importance of this final meeting for janet yellen was important for the markets and for future is what do they expect Economic Performance to be . Has that changed . In consequence, what does that imply for the evolution of Interest Rates and so forth. For janet yellen, its a valedictory. I think she has ever right to be asked what are you most proud of in your performance . And i think the right answer for her and for the country is i was there when unemployment came down from 10 to 4 . Thats quite an achievement on the behalf of the American People which she is charged with benefiting. Diane swonk, what are you going to be listening for in todays meeting . Ms. Swonk i think we only get thisissent, that there is growing feeling that perhaps inflation may not be coming back as rapidly as they would like. They base the outliers on the lower end, even though the Economic Performance has actually been much better than expected. Scarlet its telling that the fed, under janet yellen, have also said that its quite a mystery why inflation hasnt gotten to where it should be. Its an acknowledgment that is something beyond the reason they given in the past. Scarlet diane swonk tom diane swonk, lets talk with the legacy of chair yellen. Decision and 33 seconds, lets wait on the legacy of chair yellen. I want to talk about for we employed america and i think the onktors walk dr. Sw has a great perspective. Tom scarlet we scarlet stocks at record highs yesterday and they continue to move higher. The dollar losing some ground, weaker versus the yen and the 10 year yield is coming in a bit with bottoms higher. Lets check in with michael mckee. Michael the benchmark rate goes 1. 25 , 1. 5 . Year is the expanding at a 2. 5 rate, up from a 2. 1 Consensus Forecast in september. Probably due to tax cuts. Withffect fades rapidly growth of just 2. 1 in 2019, 2 in 2020, and longrange potential growth of just 1. 8 . Unemployment falls below 4 , the fed says next year. 3. 9 the consensus for next year, and 2019. And the inflation rate isnt changed by that