It has accelerated to some extent, particularly in the nasdaq, down by nearly. 5 of 1 . We have been watching outside of the stock market. In the bond market, selling the cost the curve. It is acute on the longer and as we see a steep increase in the 10 and 30 year yield. Six basis points and seven basis points, respectively. That is having an effect, a feedback affect on certain segments within the stock Market Real Estate and utilities, namely. Lets talk real estate. This morning, we got singlefamily homes and Housing Starts at the strongest case in a decade. That means a lot of supply, even as it can be a good, strong read and healthy read on the economy. We saw a residential start to 3. 2 . In particular, supply of apartments are ample. We are seeing apartment builders and owners on the decline today, also hurt by the increase in yields. Also, if you look at the homebuilders, it is true. There is the hurricane affect that we may have seen a bounceback following hurricane that increased those numbers. Kd home seeing declines. I want to bring back the chart we talked about with homeowner equity. If you look at the bloomberg, this is Real Estate Equity at the percentage of market value, in other words, how much is your home worth at this point . We have recovered all the way to the place we were prior to the housing and financial crises. This would appear to be a healthy sign for the housing flights out after there hurting the company sent rising rate, where it is perceived that could hurt demand, as well. Shery julie hyman, thank you. Congressional republicans kicking off a final sprint in a sevenweek race to overhaul the u. S. Tax code and deliver a policy victory for president donald trump. Vonnie theyre expected to vote to 98 minutes. Mitch mcconnell has promised a senate vote this evening. Kevin cirilli is on capitol hill. With Mitch Mcconnell promising a senate vote, is it a done deal . What happened to the 10 hours of debate . Kevin pretty much a done deal. We are about to get started in the house of representatives, where i am on. Lawmakers are voting and from there, it goes to the senate. The could be efforts by democrats and democratic members in the senate to delay it as much as they can. I am told by republicans and democrats that it is pretty much a done deal. This vote is expected in the senate, if not tonight, then tomorrow. The big takeaway, within the last 1. 5 hours, we were sitting with a republican from tennessee, bob corker, and he was pushing back to reporters against accusations he made some type of real estate deal in order for his boat to be a yes his vote to be a yes. He is pushing back on that developing storyline. From here, talk is to whether or not the continuing resolution to keep the government opened by the end of the week. Shery quite interesting with bob corker because it was surprising when he became a yes vote over the weekend. Lets talk about the government funding because we are coming towards that deadline. Is there any progress . Kevin a little, not much in the last 24 hours. Aides are privately behind the scenes working on a onemonth extension of the continuing resolution that would put it to january. What to watch is whether or not house conservatives, Freedom Caucus members, for example, feel emboldened in the next calendar year, particularly on the issue of National Debt. We have noticed some democrats raising concerns about the growing National Debt as part of the tax form plan, a sure bet that republicans will have those concerns into the next year. We will talk about things like keeping the governmentfunded, particularly about increasing defense spending and infrastructure, which we know the president wants to get the next year, tweeting about it yesterday, as a result of the tragedy in washington state. Vonnie to get back to the passage of the tax reform bill, if it happens in both chambers of commerce, will it be copacetic among republicans . Or will there be some lingering Little Things bothering some members of the house . Will that matter to the leadership . Kevin i think there are going to be some holdouts. It will be interesting to see which house republicans, when they vote, will vote against this and the state of tax reductions. No surprises coming. Republicans will wrap this up. Theyre confident and President Trump will sign the system is possible, i am told, once this is finished in the senate. Shery talking about President Trump, he has been the cheerleader of sorts for the tax bill. How much of what he is one tape has been reflected in this final bill . Kevin remember when we were talking about the Corporate Tax rate at 50 . That will be 15 . That will be 21 . He wanted to limit tax brackets to three. They will stay at seven. When you talk about the passing rate and things like that, there has been give and take. It is an effort to get more republicans on board. Make no mistake, the administration is out in full force as they try to really hammer home what they believe is their first major policy win and a win for the middle class. On the flipside, democrats will be campaigning ahead of the midterm election. They feel this is a deeply unpopular bill, when they think of the launch of their 2018 midterm ambition. Vonnie it has not been polling well, but is that likely to change . If messaging changes and becomes about the 2000 plus dollars each family will say . Kevin i think that is what they would like to shift the conversation toward. There is a report on the bloomberg about 401 k s, as well as the passing rate. Areiddle income americans able to juxtapose the passing rate and 401 k am a despite increase overall tax if they factored in those two components, they could see an overall tax decrease. Theres a lot going on. We should note this will not take effect until next calendar year, so after the midterms. Movingre still a lot of parts that the administration is trying to get in front of an selfassessed that major win. You are right. Polls suggest the majority of americans now are a bit unsure about this. We are going to have to wait and see about how this pans out. Once it does that affect. It willkevin cirilli, be a long night, and thank you. Shery now, first word news, Mark Crumpton has more. Mark in washington state, federal investigators say that amtrak train that derailed yesterday was speeding before it reached an overpass. According to the trains data recorder, it was going 80 milesperhour in a 30 mile per hour zone. At least three people were killed. More than 70 others treated at local hospitals when the train hurtled off the overpass. It was making its first run along a new pastor, routes, between seattle and portland. House Speaker Paul Ryan has told the republicans he has no intention of stepping down. In a closeddoor meeting with rankandfile members today, he indicated that it may no sense to leave when we are winning and have the momentum. That is according to georgia congresswoman, who says republicans responded with applause and a standing ovation. The u. K. Once a significantly better trade deal with the European Union after brexit then the one canada had with the block. That is according to Prime Minister theresa mays spokesman. He says the Prime Ministers cap is unified behind the agreement that may reach with the European Union last week. As United Nations security council, the u. S. Today vetoing a resolution that would it cost countries not to establish Diplomatic Missions in jerusalem. Less than two weeks ago, President Trump promise to move the u. S. Embassy there from tel aviv. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Shery thank you. Been one oft has the longest and deepest bull markets in modern history, but how long can the good times roll . We will have announcements. This is bloomberg. Shery this is Bloomberg Markets. I am shery ahn. Vonnie i am vonnie quinn. This market rally not showing signs including soon. Our next guest says investors are not partying like it is 1999. He has got the skinny on what is weighing on investors mind store 2018. He joins us from boston. First, that sounds a good should be a song title. Tell us what happens after tax reform passes. Will they party like it is 1999 then . I do not think they are partying like it is 1999. I think are three things weighing on them. First, valuations seem stretched. Easy Monetary Policy of the last decade has inflated Financial Assets and investors are concerned when it might end. , thehe length of it business cycle, is a concern. Folks seem to be waiting for the recession to occur. Lastly, the bull market continues to inch closer to nine years, making it one of the longest. Folks continue to wait for that other shoe to drop, so that anxiety should provide skepticism where the market may continue to rally despite that skepticism. Shery at least smallcap seem to be partying. If you look at this chart on the bloomberg, viewers can see the 2000 performance against the s p 500, which tracks President Trumps Approval Rating in yellow. This upside, does it have traction or could this be the initial him from the excitement and then fade late into next year . Michael this started in early september, when trump extended an olive branch to posey and schumer around Immigration Reform and budget spending deals and gave folks confidence that we could get a tax plan. Now we are getting that tax plan. It looks like smallcap earnings are going to rise next year as a result of lower taxes and less regulation, which should benefit them. Valuations foris you a small caps are on the high side. They are already reflecting much improved Earnings Growth, so that may temper some of the rise we get. They are rallying based on this optimism about the tax plan. Vonnie when it comes to the great rotation, does that continue . We had a great piece out on Bloomberg Intelligence same value stocks might look overbought but that does not mean there is much more money coming into them. Michael i still think we are in a bit of a modest growth, low rates, low inflation environment , that still largely is predicated on what Monetary Policy looks like. It still remains easy. In that environment, i still think you need to go with the sectors of the market, stocks that can really generate Topline Revenue growth, generate a tremendous amount of free cash flows, that they can buy back their shares, paid dividends, reinvest in their businesses. And those are still in growth sectors of the market. Financials, technology, health care. Folksk this is still getting a bit ahead of themselves in the value trade. Shery what happens accompanies do not deliver on their Earnings Growth giving the lofty valuations . Michael i think that is the biggest risk to the market in 2018. In that Companies Fail to deliver on what is expected to be a big year for earnings per share growth. For s p 500 companies, earnings are basically flat in 2014 to 2016. This year, we are going to get 10 earningspershare growth. Next year, we are expected to get more. Especially with the tax package plan passed. My concern is that if we do not get it, you could see stocks except for next year. Vonnie what is the character of this market in the sense of the confidence backing it up if we stop a small selloff . Could that trigger something larger . Michael potentially. It seems the sentiment these days for investors is by the dips and the have not been any. It seems as though investors are really enthusiastic about buyinb this markef buying this market. If i look at indicators, it isnt euphoric. They are not partying like it is 1999, but theyre comfortable buying stocks, risk assets in this environment. I do not see that changing given the current environment that good growth, rising corporate profits, easy Monetary Policy and low rates, low inflation. Shery i love that you said buying the dip because we had this chart that shows the point. We have not seen a pullback a 5 or more. Those are the white lines. We have not seen a pullback in a long time. The longestand streak since the 1960s. Can you even try to buy the dip at this point . Michael it has been more than 400 days since we have ready 3 decline or more, the longest ever. If we were to have a bit of a pickup coming hiccup, you could see accelerated selling. I do think the fundamental supporting the stock market rally continue to remain there. As we talked about earlier, i think the linchpin is corporate Profit Growth to this. We will find out in the middle of january when fourthquarter earnings come to market whether we are going to see those results. The market is expecting big things. Comparables are going to get tougher. Fourth quarter 2016 versus Fourth Quarter 2017 is going to be harder. That is going to be important. If you do see a miss, you could see the market slide a bit. Vonnie thanks to market alone michael arone. Shery it is time for the Bloomberg Business flash, look at the biggest business stories in the news right now. Carlos slim is planning to sell more than half of his 17 stake in the new york times. The stock has risen more than 50 since he boosted his stake in 2015 and became the times largest shareholder. He began Building Holdings in 2009 after lending the times 250 million to help her get through. Paydays are better these days. The average compensation is the highest since the financial crisis. The bank said aside 1. 83 billion for employee pay this fiscal year. Nearly 3500 employees are at jefferies. That is less than the precrisis average. Volkswagens rebounds from the diesel emissions scandal has upgraded its earnings forecast and has helped its search ahead of german peers. Quarter, returned this the best among european stocks. While daimler has gained 5. 3 and bmw has little change. That is your business flash update. Vonnie ahead, an exclusive interview with Robert Kaplan, president of the dallas fed. That conversation recorded earlier, next. This is bloomberg. Vonnie this is bloomberg market. I am vonnie quinn. Shery i am shery ahn. The fed spent the past year gradually raising rates and beginning to wind down its balance sheet. What comes after tax overhaul . Michael mckee caught up with dallas fed president Robert Kaplan for an exclusive interview. He asked about the u. S. Employment rate and implement rate in the fed going forward. Unemployment forecast is probably more aggressive than the median of the sep. Expect willshould happen, even though we will have solid rates of growth, i believe, in 2018 and 2019, as we approach for employment. You have heard me say u6 in the lingo, which is unemployed, plus discouraged workers, plus people working parttime for economic reasons. Thatmeasures a percent, higher than the 4. 1 . That is that the prerecession low. What you will find and what people should expect as we get or near or overshoot full employment, job growth will slow somewhat and the degree of production in Unemployment Rate may also slow some. I think that may explain why you see a little slower rate of reduction in Unemployment Rates. Michael the question is, growth goes up and nothing happens with inflation, why not . You have tw tempt you have two competing forces. One is the cyclical pressures. Im confident there are more shortages for skilled workers and at the low end of wages, there is wage pressure. If you make 20 or more, i am not sure based on my discussions with businesses there is wage pressure. But cyclical forces are building. As we take more slack of the labor market, that will build more. Then you have a headwind, technology and it means people being replaced by technology and it means consumers being able to shop more aggressively for the lowest price. Pricing the power of business is limited. It means new Business Models for selling and distribute in goods, and that is causing businesses to be very challenged in passing on wage increases into prices. I think that Structural Force is intensifying. You have the cyclical, the structural, and i think that is creating a muting effect on inflation. That is why the dallas fed is doing a lot to study this phenomenon and we are holding a conference in the spring to try to encourage the system and academia and businesses to do more. Michael why not adopt the charlie evanss approach to wait until you see inflation accelerates before you raise rates . Here is why. I believe we should take a balanced approach to Monetary Policy. We have a tool mandate, full employment, and price stability with the 2 target. We are already at or near full employment now. I believe we will overshoot for employment in the next year. I balance that against the back we are undershooting are inflation target. But it isnt one or the other. I think you got the balance and the degree of the overshoot is such. My concern is if we wait too long to remove accommodations, we will be playing catchup. In the history of playing catchup by the fed is it happy one. The history and we over ship unemployment is we tend, that tends to lead to recession because the fed has to play catchup imbalances build. I think a more gradual, patient approach will serve us better. Michael a lot of talk about the yield curve in the markets. One of your colleagues worries about conversion and recession the coming year. What do you think . Im worried about it, too. I think we need to watch it. 2. 30,r treasury, high 2. 40, is meaningful. Here is why. The history of inversions is such that it is tended to be a reliable indicator of recession. This time may be different, but i would not count on it. At 1. 25 fed funds rate to 1. 50, i will be watching carefully the 10 year treasury into 2018 because it limits the operating flexibility of my judgment for the fed in terms of how much and how fast we can raise rates. Vonnie dallas fed president Robert Kaplan with michael mckee. This is bloomberg. Vonnie that is a lovely shot of midtown manhattan. Shery from new york, vonnie i am vonnie quinn. Shery it is getting warmer. It is winter, after all. Vonnie you just wait. Shery i am scared. Lets check the major averages. Stocks are dipping after that surge in the last days. Ahead ofhe low volume the final tax bill. This majority leader Mitch Mcconnell saying a final tax bill could be passed in the senate this evening. Investors are more cautious. We are seeing the dow trading down. 2. Financials and text obsolete the declines. The s p 500 down. 25 after surging the past two days and coming close to that 2700 level for the first time ever. The nasdaq down. 6. Vonnie lets get to first word news. We have Mark Crumpton. Mark ridesharing jumping the gun. It is not why is shery jumping the gun . It is not winter yet. We have a few more days. Republicans are expected to easily passed the 1. 5 trillion tax bill. The scheduled vote is tonight. The measure permanently slashes the top tax rate of business from 35 to 21 and doubles the standard deduction used by about two thirds of american households. When you have a mud fest on television, when landing about this tax bill before it passes, that is what happens. When we get this done, when people see jobs occurring, bigger paychecks, a simpler tax code, that is what is going to produce results. Results are going to make this popular. Mark the house vote is expected this afternoon. European union chief brexit negotiator is taking a tougher stance. Michael barnier says there were not be a special financial carveout. He also warned in the guardian that one seed leaves the block, the u. K. Will have to follow any rules passed by the eu during the transition period. United nations is warning yemen continues to face a humanitarian crisis with 18 Million People in need of food. The humanitarian chief said today this is the largest feud and security crisis in the world Food Insecurity crisis in the world and to make sure that a gets to those who need it. The prognosis is not good. The blockade is not fully completely lifted, and our work is not reduced. The results in pushing back on famine over the last six months will be lost. Mark the nearly threeyear long war in yemen has killed more than 10,000 civilians and driven millions to the brink of famine. Francisncis pope spoken private that the vatican today for approximately 20 minutes with the jordanian king. The jordanian king gifted the pope with water from the river jordan and the pope gave him a medallion with all of tree branch, symbolizing peace. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Shery thank you. Development is facing a major hurdle. A group is attempting to block acceptance. Several holders are seeking payments for bonds issued under perus military dictatorship in the 1960s and 1970s. Joining us now is carlos anderson. You are officially claiming that peru defaulted on sovereign debt and that was banned from joining the oecd. Many of our viewers do not know what the issue. Carlos in the 1960s and 1970s, the peruvian know its a government appropriated 23 million acres of lands, equivalent to the state of indiana. This, they issued bonds. Unfortunately, the government has never paid them, and 20 years to 40 years later, the bondholders are still asking for those bonds to be paid and they have not. Vonnie how much money are we talking about, and is peru have the wherewithal to pay it . Talking 5are billion to 6 billion. Ratio,nk about that gdp it is buried little in comparison to other countries of the same size. So they only have a couple of ratio. Age points to that when it comes to markets, it issues around that amount with no trouble. Shery we have that chart. Perus debt as a percentage of gdp. It is low. Carlos very low. Shery the question for many, can the current government he held accountable for decision during the military dictatorship . Tribunal, 2001, at a it said very clearly that these bonds were good and they needed anbe paid and represented imminent responsibility of the peruvian state. And is from any government it must pay the debt. Vonnie hedge funds are involved, as well. Picture forying the the peruvians who hold bonds . Carlos 80 of the debt is in the hands of relatives, so this is between the peruvian government and bondholders, in general. Talking about the peruvian government, the president to right now is facing an impeachment vote. Given the uncertainty, with didnt this sideline wouldnt the sideline the issue question mark carlos issue . Carlos perhaps it might detract attention, but the reality is it is verytate clear that peru cannot become a part of the oecd but doesnt demonstrate its shares the values of the oecd, which is respect of the law, private property, etc. As long as this land bond issue isnt solved, there is no way for them to become a member of the oecd. Shery are you holding conversations with parts of your government that are on your side . Carlos yes. We have been talking to congress people, members of society, that realized this is an issue that has been in the open for too long and it needs to be solved. Hopefully, the new administration, if it comes to that, on thursday, will realize that there is a correlation now between becoming a member of the oecd and also settling the debt. Vonnie is this the only form of retribution . Targets a member of the organization . Carlos ghosn for 40 years carlos for 40 years, bondholders have been going to the courts, press, knocking on doors, etc. In 2001 at the constitution tribunal, they ruled it should be paid. Executive branch ignored it. This is why in 2013, they went back to the tribunal and asked for a reminder. That is when a horrible case of fraud occurred. Shery thank you for coming into the studio. We know this is your holiday break in new york but thank you. Carlos have a beautiful holiday. Thank you. Vonnie coming up, Business Leaders morning about a bitcoin double. We will speak with kwames ceo and get his coinlist ceo and get his take on the cryptocurrency. This is bloomberg. Shery this is Bloomberg Markets. I am shery ahn. Vonnie i am vonnie quinn. It is time for our stock of the hour, one of the top movers in the s p 500. A strong quarterly performance and Abigail Doolittle is here to explain. Abigail this is appropriate for the lunch hour. The last time he covered darden, we said we had not been there since 1995, but based on performance, it seems we should be eating there. Shery what are the restaurants question mark abigail all of garden. They have abigail restaurants . Garden, andve they beat earnings estimates by the most in four quarters. It was up by 3. 6 . They also beat revenue by 1. 4 . Olive garden the key driver, cost and the right directions and Second Quarter concept 3. 1 versus the estimate. A solid performance. Shery wasnt the trending casual dining that they were not doing well . Abigail when we look at the restaurant companies, we have romanos macaroni grill, they went bankrupt. Applebees not doing well. Ruby tuesdays was bought out. Olive garden is on fire. We have such a cool function on bloomberg, g btv 8041, and it is amount of all of the Darden Restaurants locations. In yellow, olive garden, their primary restaurant chain everywhere on this map, really dominating. They not only have lots of locations, but because of them, they are able to scale costs. Not only are they having good topline performance because of the food and bottomless salads, breadsticks, and pasta, but they can scale up the cost over all the restaurants. Right now, a winning formula. Despite a noticeable Short Interest of 6 , the stock is doing well, up about 30 on the year. Vonnie thank you. Leaders aresiness talking about bitcoin. Shery they surveyed 87 Corporate Leaders last week and 88 percent of participants labeled the cryptocurrency dangerous bubble. Bitcoin warning, as futures launched trading on sunday. Joining us from San Francisco is andy bromberg, ceo of coinlist. Great to have you with us. It seems that cmes are trading and a little bit residency those bit better than it. Cme seem like the market was more ready, even the spread between the spot price and features price was smaller. We are seeing Institutional Investors are gaining interest in the Bitcoin Space and cryptocurrency broadly. Coinlist, we are seeing the same thing with these Institutional Investors with a lot more knowledge and knowing how to invest in the space more decisively. Vonnie what does that mean . Are they buying products and on your exchange . And who are these Institutional Investors . Andy on the coin this exchange, runoinlist exchange, we token sales. Institutional investor, endowments, investors are starting to buy on coinlist, as a laws the future as well as the future exchange. Shery you have been cautious on listing companies. Just a handful so far. How many are in the pipeline right now . Andy we have hundreds in the pipeline and more every day. We have a strict vetting process and it goes sure to make sure the market, sales and team are strong. We expect to be running many more in 2018, but there isnt a lot to get through the vetting process there is a lot to get through the vetting process. Vonnie what about regulation . What happens when there is regulation . The whole point is there will not be regulation, right . Andy we disagree. We are excited to regulation to come. It is important that there are rules in place for investing in these markets. We see that the sec and other regulators are taking a closer look at this. The commissioner in the Statement Last week said that you should be investing. Vonnie but wont all true believers assert the currency . The point of cryptocurrency is there is no hand of government, regulation or anything. If the true believers stop believing, what is backing the currency up . Andy we think the point of cryptocurrency is they are a decentralized system for building up powerful applications. It happens early adopters had beliefs of no government interference and making sure regulation did not come into play. For us, we see it as a Natural Evolution to keep supporting technical benefits of these products in a more regulated and strong environment. Shery bitcoin has been around for less than a decade. When do you expect the volatility to settle down and price stabilization to come through . Andy it is hard to give a timeline for when stabilization will happen. I think at the introduction of these future markets and institutional acceptance will play a strong role in that. We see these big entities investing more capital. That will have a stabilizing effect. Right now, we are going through this price discovery process as more people in about the coin. It is a poorly known about about bitcoin. It is a poorly known about asset. We need Public Knowledge and acceptance for to stabilize. Shery thank you for your time, andy bromberg, coinlist ceo. Vonnie time now for our latest Bloomberg Business flash. Is voting toittee oppose the nomination of scott garrett, the trump administrations choice to head the export and import inc. The import bank. Congress has been called on to strength. Im to full it means good pay, industrial manufacturing jobs, often union jobs with good wages and benefits. Press to continue to turn back on this is not practice. Is malpractice. Vonnie shares of apple have risen more than 50 this year. Internet cutting apple to neutral, saying the stock gains are in the late innings. Tracy iphone x sales and other sales for the company are already a into the stock price. And humana and two private equity firms have agreed to buy kindred healthcare. The price tag about 4. 1 billion in cash. Humana will get their home health and units. They plan to take over the companys hospitals in rehab facilities. M ay straight ahead, food boomed in 2017 but it could be a taste of what to come in 2018. We will discuss that next. This is bloomberg. Vonnie this is bloomberg market. I am vonnie quinn. Shery i am shery ahn. The u. S. Food industry has announced 42 billion in deals this year but it could be a taste of the next wave of consolidation in 2018. Vonnie were talking about inzpanies from kraft he to conagra. Joining us to discuss his bloombergs reporter. Explain what is going on. They are struggling to grow. This has been an issue for big food and youre looking at acquisitions to tap into changing Consumer Trends and get things going. Obviously, the big thing we are waiting for his kraft heinz. There is an expectation they would do Something Big rather sooner than later and that will shake things up. Shery how are these mergers expected to help these companies . For campbell and hersheys, they have problems. We hear a lot about healthy eating, but smacks remain popular that are healthy. For hersheys, people do not buy as much candy. Companyhem by a jerky and now theyre going into salty snacks. We saw two oldline Food Companies trying to diversify their portfolios. Vonnie it depends on taste. Right now, the taste is for something healthier. Soda is not really in there, but will that come back and could it change . Craig it is hard to say. You have seen ceral and yogurt decline. There is a problem for big Food Companies. There is distrust and a lot of fors, consumers looking more food with cachet that resonates with them better. A lot of people are thinking about how food trends play out. But we do know that salty snacks have been strong, going back four years, despite what we hear about everyone trying to be healthy. Shery it is literally a straight line. Vonnie the dashboard in our Bloomberg Intelligence dashboard, type in bi food and. You will see how much salty food has played a role. Shery how much of the sales of revenue has evaporated because of this slowdown in the Food Industry . Like 17 is something billion over the last three years with general mills, kraft, kellogg, going down quarter after quarter. Growth is hard to find, which is why we see these deals. Vonnie he was next . Call it now. Craig kraft heinz is going to watch. I think a lot of people it would go after u. S. Food company but maybe Something Like colgate because they want household products. The big want to look for is kraft heinz. Shery are we going to have more activist pressure . Craig that has not showed up because Food Companies give out good dividends. Cash flow has been ok. They have been a solid, Stable Company but a lot of pressure. I would not be shocked if it showed up there. Vonnie do tax cuts help . Craig these are u. S. Companies, so yes. They benefit going down to 21 . It varies, but most make their money in the u. S. It will help them on the bottom line. Vonnie you know what we are getting in 35 minutes . Craig that is right. Vonnie bloombergs craig giammona. Thank you. Shery straight ahead on Bloomberg Markets, with the government, shut down the main. Rankingsation with a member. How the government plans to keep the lights on. And the tax vote looming in about half an hour. The house expected to pass the tax bill. And we are hearing for Mitch Mcconnell that we could get the senate to vote on the tax bill in the evening. Vonnie i want to point out you can go back and look at our interviews or follow along live. Type in the function tv with charts, functionality and ask the guest a question in this corner. Lets take a look at how the markets are faring towards the beginning of that tax vote, which is starting in about 35 minutes. Stocks are giving up gains. The dow down about. 1. S p down about. 2. The vix is a little elevated. The index not strengthening, at 93. 6. In terms of yield, movement there. The 10 year yield up a good seven basis points as we see a selloff in global bonds, not just u. S. Treasuries. Shery we could also say there is low volume in trading ahead of the tax bill, so investors more cautious today with trading in the markets. We continuing to see some strong gains for parts of the market, although financials and tech stock are leading the declines. Plenty more coming up. Live from new york, this is bloomberg. Is this a phone . Or a little internet machine . 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. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Shery it is 1 00 in washington, 6 00 in london, and 2 00 a. M. In hong kong. Had, im shery ahn. David and im david westin. Welcome to Bloomberg Markets balance of power, with a focus on the intersection of politics and the economy. Story. The tax overhaul means three decades boat is this hour. Can democrats do anything to slow the process . Friday is fast approaching and the threat of a Government Shutdown is becoming more of eight reality as the house and Senate Struggle to reach a deal before the deadline. We will speak with Ranking MemberJohn Yarmouth in moments. Protecting the palace. A coalition thwarted a Ballistic Missile fired by a around by yemeni rebels earlier today. The latest from that region this hour. Shery losing ground ahead of the tax vote