The s p also down. 1 . All oil at session highs, energies leading the gains. The nasdaq is down. 4 . At the lowest level in more than a week. Take a look at some of the currency trades happening. Major markets are still shot, so we are seeing some position adjustments. Not much moves in the dollar, after two weeks of decline. Some growing optimism about the strength of the u. S. Economy after that tax bill. The japanese yen strengthening a little bit but around that sixweek low against the dollar. The boj cap its loose Monetary Policy stance last week. When it comes to treasury yields, 2. 46. The 2 10 spread is now there are for a fourth straight session. That is a look at the market. President donald trump signing the gop tax overhaul bill last week. Congress also signing a budget deal to avoid a shutdown before going on its holiday recess. So what is next on the agenda, what could it mean for the markets . Joining us to discuss from los kumar strategies and founder, komal srikumar. The u. S. Tax reform taking place, we saw the market rally that followed. However, what happens if we see trade tensions, Going Forward . Package included some things that could trigger some more protectionism from the u. S. That is very true. Even though there has been a burst of euphoria in the stilles market, there is a lot of unresolved on the trade front. Particularly, having withdrawn from the Transpacific Partnership on the first day of his presidency, President Trump now is looking in terms of what happens with nafta, which is very important. I did a piece for bloomberg recently. My argument was that 1 trillion worth of goods are passing through the three countries, canada, united states, and mexico. If that treaty comes to an end, you will see a very negative impact on u. S. Employment and exports. It will not include improve the balance of trade, it will worsen it. That will be negative for growth in 2018. I dont think that is yet discounted in the markets. Laura i read that piece that you had written for bloomberg. One of the things that you mentioned and let me know if this has changed, because you wrote it before the tax bill was signed but you mentioned a scenario with that protectionism potentially happening with these other countries, and your example was maybe the German Government would impose some taxes similarly to what we have on our u. S. Subsidiaries with bmw. If they had to purchase cars from a plant in south carolina, the German Government would do a tax on them, similar to how we are doing for our companies here. Is that something you are worried about . Komal first of all, thank you for reading so carefully. You are right. That is something im worried about. Trade retaliation can take different forms. One way is, right now, the way , we have somes taxes that will be imposed on u. S. Companies bringing in from subsidiaries abroad. That is a proposal in a trade negotiations. If that stands in the final bill, yes, im concerned Foreign Countries can do the same, in terms of retaliation. So what that means is, continuing on the example that plant in souths carolina will be hurt in terms of employment going down, so we dont benefit from doing that. Trade retaliation is a major risk for the economy in 2018. Shery still, when you are talking about corporate valuations, Corporate Taxes, this will help. Still some potential for upside in the markets. Komal if the tax plan has gone what it particularly means in terms of the Corporate Tax rate going down from 35 to , that will be a big positive in terms of corporate earnings. The question is, if at the same time you have trade retaliation and negative impact, coming from the trade side, if that would outweigh the benefits that come from the lower tax rate. , if youment here is earn less abroad, even if you are taxed at a rate that is lower than the money you are being taxed on, that is the negative im worried about. The base, rather than a tax rate. Laura what about the consumer side . You have a lot to be worried about on the corporate side, but you pointed out, the benefits that workers could see from this tax bill could be erased in other ways. Komal first of all, in terms of the tax plan, the benefits are weighted, in my opinion, on the higher income side. Lower income workers would benefit mainly if the tax plan and the reduction in the tax rate leads to an increase in wages, and second, an increase in hiring. Believene, happen to there is a lot of slack in the labor market despite the 4. 1 on theumbing rate because of Participation Rate being lower, the population to unemployment ratio. We have not returned to previous session highs. That says to me, if the companies are going to spend extra money in terms of higher dividends, or equity buybacks, then the workers do not benefit, and consumption, which is 70 of gdp, does not benefit either. That is still a question in my mind as we look up to the new year. Shery all of these things, something the fed looks at. We are looking at the 210 treasury spread and we see this narrowing. Right now at 56 basis points. Of 51. From a decade low if the fed continues to hike next year, we expect three rate hikes. What happens to the yield curve, could we see it reverse, what does that mean for the economy . Komal very timely question. The fed has talked about three rate hikes. Starting february 3 we are likely to have a new fed , if under jay powell, the same policy continues, one of two things happen. Either that that process with the rate hikes, and i believe the economy is not Strong Enough to take three rate hikes. And that in turn causes the 2 10 yield curve to invert because the 2year continues to rise and the 10year continues to drop. Thatecond possibility is that does not increase. Then you are looking at a situation where the fed goes back to stimulating markets, rather than the economy, which was the old situation. So the result is neither is very preferable from the point of the overall economy and employment. Facte been a critic of the that the fed has been overstimulating and should have increased Interest Rates substantially three years ago, which they have not done. Spread is an important indicator, in my opinion. Basist goes below 50 point, it inverts a year later, and then you are looking at a recession. At 51 basis points, and we are still close to that low of 56 this morning. Shery thank you so much for your time, komal srikumar. Laura lets check in on the first word news. Emma chandra has more. Haveench authorities opened up a judicial probe in a tainting the be milk scandal, leading to the recall of several million products out of fears of salmonella contamination. Company has apologized to customers and said tests confirm the salmonella outbreak at one of its production sites. Authorities say 31 infants across rants contracted salmonella within days of consuming the milk in recent months. None died, those 60 and were hospitalized. The recall affected about 30 countries. The former president of perus Soccer Federation is not guilty after an investigation, this after two others were convicted in a bribery scandal. The ruling cabs a trial in which investigators look into a culture of greed and corruption in fifa. Three major u. S. Cities have filed a lawsuit against the Defense Department, saying Many Service Members were disqualified from government ownership or not reported to the National Background check system. Three major u. S. Cities have filed a lawsuitnew york, san frd philadelphia filed a lawsuit today in virginia. They argue the Defense Department failed to report numbers of disqualifying records to the National Background check system for gun licensing and sales. That allowed a disgraced air force member to buy a rifle which he used in a texas church. Fresh off of his first major legislative victory, President Trump is playing golf with one current and one former pga player and a sitting u. S. Senator. He went to his private golf club in west palm beach, florida in nearbyding time palm beach. The president had tweeted yesterday that tomorrow is back to work in order to make America Great again. He is expected to remain in palm beach through the new year. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Thank you. Coming up, forget the fight between republicans and democrats. Between theces house and senate gop members could define the congressional calendar. This is bloomberg. Laura i from bloomberg World Headquarters in new york, im laura keller. Shery im shery ahn. This is bloomberg markets. Republicans and democrats in congress are spoiling for a big fight in a new year but it are differences between the house and Senate Republicans may play an even larger role in how the legislative agenda plays out when Congress Returns next month. Here with all the details is steven dennis, with us from washington. Great to talk to you again. There seems to be clear differences when it comes to what the senate wants and what the house wants. Mitch mcconnell already shooting on the possibility of tackling welfare reform next year. Mcconnell really lowering expectations for some big partisan agenda next year. They got tax reform done. That will be and i got a lot of judges that they wanted. Going into next year, they will have a smaller majority because of the Alabama Senate race. 5149. They have already tried and failed to repeal and replace obamacare by themselves. Instead, he is looking for more bipartisan deal making, things like immigration, doddfrank financial regulatory overhaul, which has some democratic deregulate some of the smaller banking institutions, give them some relief. Things thatme require bipartisanship and maybe doable in an election year. The issue mcconnell brings up are more bipartisan issues but i wonder how he gets the votes for those things. Does he reach out to the is he looking still into the republican party, asking for the votes, pushing harder than he had to before on the same issues . Steven in some ways, it is easier want to have a bipartisan framework. On immigration, you will see almost every democrat vote for an eventual deal that will provide some sort of relief to these 800,000 dreamers currently as well as some kind of Border Security package. Whether you call it a wall or Something Else to make the democrats ok with it, that is to be determined the next several weeks. On the doddfrank issue, there is already a number of democrats who have signed on board with a deal. It looks like he has the votes there. It is just a matter of getting across the fish in finish line. There are some things that he could do that would be easy wins, and there have been a lot of pentup things on the back burner, deals in the making on Childrens Health insurance, a number of other issues, including shoring up Health Insurance markets, that they could get done in the next several weeks heading into the january 19 government funding deadline. They have to get some deal done by then or the government shuts down. That is not something you want heading into the president s first full state of the union shortly after. About insurance markets, how likely could we see bipartisanship on health care, given the president just this morning tweeted that democrats and republicans will eventually come together to develop a great, new health care plan. Steven i think there is a chance here. Some republicans look at the tax bill where they repeal the individual mandate, as Mitch Mcconnell called it, the heart of obamacare, but there are still subsidies, millions signing up. Those people are worried about premiums going up, about the stability of the markets. So there is some bipartisan deal making that has been getting close to the finish line that would have reinsurance, bring but theresdown, been a lot of resistance especially in the house. It will be a test for President Trump. If he wants to get a bipartisan deal, he will have to weigh in on those House Republicans and say, this is what i want. So far, he has not used a lot of muscle there. If he gets a bipartisan package on the budget in the next few weeks, maybe he is looking to make some bipartisan deals. You look at republicans in general, the president has not been popular. The polls for next year are pretty terrible. They need to try to turn those around. Cutting some bipartisan deals may do that. Shery thank you, steven dennis, joining us from washington. Ahead, thel billionaire ceo of softbank talks about how he talked his way into a meeting with one of japans most famous entrepreneurs. This is bloomberg. Shery this is bloomberg markets. Im shery ahn. Laura im laura keller. Softbank founder Masayoshi Son has invested in more than 1000 companies, but one investment looms above all the rest. An early been on alibaba. He talked about the deal on a David Rubenstein show. One of the investments you made is considered by many people to be the most accessible investment in the history of mankind. You invested roughly 20 million in alibaba. At the time it went public, it was worth roughly 90 billion. 20 million of 90 million, a return of 4500 . Jack ma is a distinguished individual, one of the most successful burners in the world. What made you feel this was worth putting in 20 million . He had no business plan. [laughter] zero revenue. , maybe 35, 40 employees. His eyes were very strong, strong, shining eyes. I could tell from the way that he talked, the way that he looked, he had that charisma, leadership. His Business Model was wrong. The way that he talked, the way that he can bring young, Chinese People following him. Before yahoo was famous, you made an investment that was successful. How did you hear about yahoo . It was still private, 15 employees. People to take 100 million of our investment. , 15 to 35e, we agreed people. 100 million to own 35 . When we had ipo, we made a great turn. At the same time, i convinced him to start a joint in venture where we put in 1. 2 million, they put in 0. 8 million. 2 million startup capital, we own 60 . Lets talk about one mistake you have made overall. You are successful in almost everything you have touched, but you are making a lot of investments around 2000. The market went down in the tech crash. It is said that you personally lost 70 billion of net worth, the greatest loss any human being has ever suffered financially. How did you feel losing 70 billion of net worth . One year before that, actually, my personal was net net worth was increasing 10 billion per week. In three days, i became richer than bill gates. That must have upset him. [laughter] before i told anyone else, our stock started crashing. [laughter] that, ourths after share price went down 99 . Bankrupt. St went somehow, i survived. Laura that was softbanks Masayoshi Son talking with David Rubenstein. It is time for the Bloomberg Business flash. Error mexico is considering an order of bum barnier cseries tos, if terrace stopped delta airlines. According to people familiar with the matter, they are also considering short range planes from embraer and mitsubishi. Is making a deal. The company has agreed to sell its u. S. Subprime auto leasing business come in exchange leasing, to start a car marketplace. Financial terms were not disclosed. A holiday shortened week begins with a sale of 134 billion worth of treasury bills. Lightant miss say with a touch of economic data, the auction of threemonth bills today is shaping up as a key event. That is your Bloomberg Business flash update. Coming up, saudi arabia is betting on Rising Oil Prices and production to diversify its economy. What does the global does the Global Market support the scenario . This is bloomberg. Laura live from bloomberg World Headquarters in new york, im laura keller. Shery im shery ahn. This is bloomberg markets. We are seeing the dollar hold steady after two weeks of declines. 93. 26. Growing optimism over the strength of the u. S. Economy after that tax bill was passed. The japanese yen Holding Steady against the dollar. 113. 20, still around a sixweek low. The yen has been falling against most g10 peers. The 10year yield, 2. 47, yielding ground after losing ground last week. No significant u. S. Data this week, a holiday shortened week. We are seeing thin trading across markets. The 2 10 treasury spread is narrower 44th session. 56 basis points, not much higher. Han a decade low 51 a lot of investors still wondering, are we going to see that santa claus rally . Today, not so much. Laura now lets get to emma chandra who has our first word news. President trump says eibar partisan plan to health care will be developed as a result of the tax overhaul. In a tweet today, the president said, based on the fact that the individual mandate has been terminated, republicans and democrats will come together to cross a new health care law. Tax bill signed into law eliminates the mandate believes other parts of the law intact. Regional authorities in france are scrambling to meet president emmanuel macrons deadline to get migrants off the streets and out of forest hideouts by the end of the year. The government is tightening the screws, wrapping up expulsions and raising pressure on economic migrants and allowing divisive id checks in emergency shelters. Critics contend that the increasingly tough policy has crossed a line pass by no other french president. Police have evacuated about 30,000 people camping out on sidewalks in paris over the last two years. Voters are at the polls in liberia today where former International Soccer star george weir is a favorite to become the countrys next president. The world Soccer Player of the year defeated the Vice President in the first round of voting held october 10. They are battling to succeed the incumbent president , who is due to step down in january. The ripple in the force continues across the Global Box Office. Ookar wars the last jedi t in 50 million in foreign markets on christmas day, 25. 7 million in the u. S. The movie has topped 100 million for the second week in a row. The Global Box Office to date is about 792 million. It opens in china january 5. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Thank you. A bloomberg exclusive now. Saudi arabia is confident in a bullish oil market. Governments to sticks provided aoomberg show they expect jump of 80 in oil revenue in six years, this as oil hits a daily high after a key libyan pipeline suffers an explosion. A jump ofbut is the kingdom too optimistic in the face of rising american shale production . Lets bring in alix steel. Do you think that the projections hear from the saudis are too optimistic . We spoke earlier, how you look at the price has to do with a marginal barrel. That last mail you produced to meet demand, how much does it cost to get that into the market . If that is at 50, which is what goldman thinks, how much can you sustain 75 without a flood of oil coming on the market . That said, we are looking at brent at a two and a half year that over 60 and a half per barrel. A pipeline explosion, so we are getting 600,000 barrels offline right now. So there is a premium, irrespective of the marginal cost. Shery at least when you can get from the saudis in terms of indication of what they are plenty do with the output curbs, probably they will not extend beyond 2018. Alix that is the big question and that goes to when the market will rebalance. What is striking about the move today, yes, we have been trading, not super liquid because of the holiday week, but it shows how sensitive Market Participants are to any geopolitical issue. You could argue that 700,000 barrels a day does not seem like much, but it kind of is, when saying nonopec supply will grow by only 200,000 barrels a day. That is a third of what was lost in libya. That is a significant issue. Laura one thing that i think about, talking about the projections with saudi arabia, they are obviously a large producer of oil but not the only ones. How much ability do they have to control their own production and influence pricing based on that control . Alix in opec, they are the only game in town. If they will keep cutting, you will see a move, for sure. However, compared to the u. S. , no one really knows what the longerlasting effect of this will be. You could make the argument that wind upudi arabia will having good control over the longerterm oil price but that tradingty, a cyclical band of oil, will come from shale, that marginal barrel we talked about. I cant imagine that the saudis have control to get it to 75, unless shale runs into some. Erious Development Issues whether it is infrastructure issues, bottlenecks, not getting the same bang for the buck, already drilled all of the hot spots. That is where you would really ability tod saudis manage the price more. Shery you can see the production on the bloomberg. Saudi arabia takes the bulk of it. You can see where all of these countries stand. Lets talk about u. S. Production. Despite the rather we have seen in crude prices, drilling has not ramped up since the peak in august. Alix there is a lag. The drilling that you saw in the summer would come up in the first or second quarter. Not surprising they are putting on ice because there are questions about spending in cash flow. If you are a shareholder, you want to say, we are spending in cash flow, here is a dividend. If you cannot say that, how much will they be rewarded for Community Growth . That is something that shareholders are pushing for now. In terms of supply growth, you look at the major reporting agencies, opec sees not opec supply growth at one Million Barrels of oil a day next year. Iea sees 1. 6. Eia, 1. 7. That number will determine what happens to the price next year. By the way, that ranges what libya just lost for their pipeline explosion, to put that in perspective. Laura still a big number but small compared to what saudi arabia is producing. That margin that we lost in libya, the market could if many saykly, that inventories are above their fiveyear average. That, veryok at close to that fiveyour level. What happened in libya can be significant. Shery great to have you, alix steel. Iphone x, apples sales not meeting the hype and analyst calls are moving the stock. This is bloomberg. Laura live from bloomberg World Headquarters in new york, im laura keller. Shery im shery ahn. This is bloomberg markets. Apple falling on analyst calls surrounding the iphone x to the premium phone saw mediocre holiday sales and analysts are cutting shipment forecast. A taiwanese newspaper reported apple has cut sales outlets for the device. Lets bring in cory johnson in san francisco. The reaction on apple is not as big as many had expected. Thin trading today. Could we expect a sharper drop once all of these investors come back . Cory i think the fact that we had all of these analyst notes in concert today suggest the news is not a shocker. The variation of the account is quite wide. Are 30 ,whose notes 40 variance. Still questions about how many iphone xs will be sold. , so much greater than the 8, and similarly with profits. We dont know the gross direct margin break down here, but the expectation is there are enormous profits to be had if the mix shifts just a few Percentage Points toward the iphone x. It makes a big difference for apple. Much . Do they suffer as if, for example, apple says production has not been what we wanted, is that something they put thosedy components into apple, have they already made those sales . Cory if apple catches a cold, suppliers catch a fever. If the product does not sell, it is the supplier that will suffer. Even on the margin, when demand slows, if it does, that will effect,a greater because of the way apple manages inventory so tightly. Really forces it down the throat of suppliers. They are the ones stuck with this stuff. Semiconductors, radiofrequency ,dentification products antennas, Everything Else that goes into the phone, that stuff rots like fish. The value of this stuff decreases every day. For the supplier stuck with this inventory, its a problem. Not to mention challenges and competition from these asian phone makers. All of my friends in asia are using samsung or other brands. Cory to be sure, there is a lot of competition around the world. One of the interesting things, apple derives most of the profits from the industry. While everyone else is trying to win shares, they are not making much money. Thee apple may have 30 of market share, they probably have 80 of the profits in the industry. That is exactly where they want to be. They would love more market share but not at the cost of profits. They are taking what is on the table, samsung is taking what is left. Are talking about these new analyst notes. Apple is expected to earn another 8 billion in revenue in the quarter. And an extra 20 billion in profit. This is an enormously profitable business for apple. The shipment of how many phones in a given quarter is a lot of the analysts are going over details and guessing what the details will be, but fundamentally, this company is growing fast and getting eager, one of the most Profitable Companies in the history of the earth. Shery cory johnson in san francisco, thank you. Laura now to another tech topic, bitcoin. Selloff, the cryptocurrency lost way 6 of its value. Now it is around 16,000 on the day. Despite its volatility and warned from Institutional Investors, confidence is still high. Lets bring in someone who covers bitcoin. Julie, we are always talking about this and it is always going up and down. What do you make of it rising above 16,000 today . Julie not even just up and down. Fit team001 day, thousand and the next day. You cannot even keep up with it. That has really been the story. It started out at 1000, rose to almost 20,000. Last week, it had its biggest selloff through monday since 2013. A lot of people were wondering what would happen next. Some people are starting to come back to the office and whatnot. It will be interesting to see when volume picks up next week. More Institutional Investors get involved, what happens next. Doesnt go to work 20,000 or fall back toward 10,000 . Aery every time there is selloff, my husband becomes happy because we had discussed buying in a run for thousand and we didnt. Anytime there is a selloff we knew it would happen, so it was dangerous, but Mohamed Elerian writing, whether this is a healthy correction is a key question right now. When will we know that . You willdont think know anytime soon because there are so many questions surrounding bitcoin. How manysed earlier Institutional Investors would get involved, what will regulation look like in the future . There is so much out there and investors heads, wondering which direction it will go. A lot of big price swings where you can lose a lot of money, if you dont take it the right way. Laura and because you dont have investor notes, big,standing of these institutional clients, you have to guess at what the retail person is going to do. Julie that is one of the reasons that mike no regrets decided not to put his fund out there now, what to see more stability. If he was confident that it would rise right away, he wouldve kept going on. Right now, he is taking a step back, seeing what happens, and then maybe going at it again. Shery we found this chart interesting. Has been lagging, underperforming other cryptocurrencies in the past 10 days. Of all of these, which one is likely to challenge bitcoin in a significant way . Julie a theory of is the one that you will end up hearing about. All of them have outperformed bitcoin percentagewise, it is just that they were coming from a lower base to begin with. They still have a lot of catching up to do in terms of market cap. The one that you hear most of our rep, like coin. Those are names that pop up a lot. Therum is huge in south korea. Laura that is why we like the trend so much. We always hear about bitcoin, but there are other cryptocurrencies that people are trading. Puts and if they stop blockchain or crypto in its name, it will surge afterwards. Dont think any Institutional Investor think this will slow down if things like that keep on happening. That is the sign of a bubble and a top. China by middle east oil through blockchain for the first time. Thank you so much, julie. It is time for the Bloomberg Business flash some of the , biggest stories in the news right now. Bullish forecast from saudi arabia. The kingdom expects oil revenue 2023, whicht 80 by will help saudi arabia record its first Budget Surplus in a decade. Authorities expect Oil Production to increase from an average of 10 Million Barrels a day this year, to 11 million in 2023. There is a deal in the pharmaceutical industry. The deal is worth 1. 2 million in cash. U. S. Ipos bounced like in 2017. More than 1s sold billion in stock this year, fueled by a surge in stock markets and lowball ability. 49 more companies what public this year than last. Raisedrage amount increased to 175 million despite fewer landmark large listings. That is your business flash update. Laura star wars the last jedi continued its box office haul. Sees the boxvie office weekend. This is bloomberg. [applause] star wars the last jedi top ticket sales for the second week in a row. Revenue still felt 54 from its opening weekend. It battled five new releases over the Christmas Holiday weekend, including a jumanji sequel. With us now is quinton harrison, joining us from los angeles. I was still debating whether or , buto watch the last jedi given how well they are doing, the reviews have been pretty good. Verye reviews have been good from critics, mixed with audiences. Theen tomatoes tracks reaction of audiences which has been more 50 50 but the critics love it. Definitely getting some good reviews. Maybe usually go see it. I am going this week. No spoilers here. I would have thought, being in the entertainment capital of the world, you would have seen it by now. Of movies toa lot catch up on. We are coming up on awards season. You have to fill in your calendar as you can. Laura as far as who has got to see the movie already, 400 million in receipts already. And that is just a mystically for north america. Worldwide we are coming up on 800 million, which is a good number. Movierst Disney Star Wars , the force awakens, ended up doing 2 billion worldwide. This one is not going to get there. That is fine because the last one had a lot of pentup demand, there has not been a new one in 10 years, a lot of characters coming back. What disney is trying to do now is pivot to a new generation of star wars fans and keep the franchise going for many years with one of these new movies. A new trilogy already in the works for later in the decade. This is a good result for them. Obviously, the closer they can get to 2 billion, the better they will be off. We will see in a week and a half, when the movie opens in china. That will be a big moment for disney. Marketly, secondbiggest for movies, but also a place where star wars is not as entrenched. People did not watch it growing up. Making sure there is a new generation of fans that love star wars. Shery what about a jew generation of fans for the new jumanji . Bit of ane has been a surprise. Everyone here in the l. A. Bureau has been talking about it. 50 million over the weekend, including monday. Thesee seen a few of trips back into nostalgia not do so well in the past year. Ghostbusters was a flop. Year, also have a rock and it, which people thought would get it over the hump, but it bond. This one seem to have all the right pieces. If yous an alternative, had already seen star wars. It was a good result. Shery thank you so much for joining us or the latest box office hits. We have breaking news right now. We are hearing tesla will make a new pickup truck right after the model 1. Saying, i, elon musk promise we will make a pickup truck after model y. Elementse core design in my mind, dying to build it. Shares are down 1 over the course of the day. Still, we will get a new pickup truck from tesla. Managedead, republicans to come together to pass a tax bill, but differences within the party could come to light in 2018. Former north coto senator kent conrad joining us. This is bloomberg. It is 1 00 in washington on, 6 00 in london in 2 a. M. In hong kong. Im kevin cirilli. Welcome to bloomberg markets, balance of power. Here are the top stories were watching at this hour. The next big hurdle for republicans could come from within its own party. There are major differences between house and Senate Republican members who can play a role in the legislative agenda for an year. Former democratic senator kent conrad joins us. And the tough stance on the regime has unintended consequences. One of the centerpieces for the Trump Campaign is still just a. Rototype