What is making headlines outside the business world. Taylor david, the first charges may be announced today in that investigation of russian involvement in last years u. S. Election. According to multiple reports, the grand jury associated with special Counsel Robert Mueller as approved the first indictments. President trump called the investigation a witchhunt that is bad for the country. Puerto rico plans to cancel a controversial 300 Million Contract to rebuild the islands power grid after it was devastated by the hurricane. The contract went to a tiny Company Based in whitefish, montana, the hometown of interior secretary ryan zinke. Whitefish energy had two employees before winning the nobid contracts. President of the catalan republic failed to show after being fired by the Spanish Government over the declaration of independence in the region. News 24 hours per day powered by more than 2700 journalists and analysts in more than 120 countries. Im taylor riggs. Jonathan thank you very much. Investigators bracing for a week full of marketmoving news on deck. An announcement from President Trump on who he has picked to lead the Federal Reserve. Fromterest rate prediction the fomc. Potentially, charges in the mueller russia probe. York is Michael Mckee. If i could offer you the outcome of any of those events happening in the next four days, which would you pick. I think the one thing we are most focused on is the fed. Who leads the fed . What impact will that have on global Monetary Policy . I would go for the continuity candidate, janet yellen, but that does not look like what is going to happen the next time around. Whoever leads the fed, im pretty confident they will get the right pick. Jonathan michael , we have these binary outcomestwo michael, we have these two binary outcomes. Oris either john Taylor Jerome powell . Michael there are some of the possibilities out there and donald trump is such an unpredictable person that it could be janet yellen at the last minute. It is probably going to be powell. Thursday would seem the most logical day because tomorrow and wednesday are fed meeting days. Your list i would say is a bit like the College Football playoff rankings, which, tomorrow, Everybody Knows who is going to be on the list, but you just dont know on what order. I think taxes will dominate the news over a longer cycle. If it is powell, it is steady as she goes for tax policy fed policy. David lets go with that. Is it right for the markets to be anticipating that it is more optimistic about the possibility of tax reform given the fact that they have got past the budget . Peter getting a bill out would be nice. I have been long skeptical we would even get this far. I think the markets would look favorably on anything that gets out there. I think the question many people have is whether this is a tax bill which will benefit corporates at the expense of private consumers. If that is the case, the markets might like it, but i cant speak for the american voters, but it may not be so good for them. David there is a lot of haggling left to be done and that is going to begin as they get the bill. Are we missing the lead . That Congress Seems to have gotten past the deficit issue . Michael it was dominant in washington for years and we dont hear that anymore, in part because republicans are desperate for a win and they would rather get a win on taxes than worry about the deficit. We still dont know how brady is structuring this. We dont know how deficitneutral it would come out to be. Whether they would have to sunset predictions. They might have to get rid of the business test tax deductions, the lower rate, after two or three years because it would affect the budget. Until we know the details, we dont know. We know the lobbyists are out in force. The National Association of Home Builders came out against this. Realtors are in everybodys district and they are the first to take shots at the bill. Jonathan how do you price the front end of the Treasury Curve with this as the backdrop for the moment . How do you and the team at commerzbank see it . Peter no surprise, it is very difficult. I think it is about not worrying too much about what the outcomes will be. We work with the information we think we have at the moment. And we will be able to assume steady as she goes. What unfortunately happens is that sometimes information differs from what we expected and that is when you get the big market jumps. We are taking a step into the unknown here. I think many of us are rather concerned we might get a lot more volatility across the whole of the curve, then we have had for some time. David exactly my question. There is so much uncertainty in the bond market. Are you seeing that volatility already showing up . Peter actually, no. Bonds have been pretty quiet for quite some period of time. If you look at option market volatility, it is relatively muted, which is surprising, given where we are. I think it might need a little but more of a nudge from the fed to start moving that up a little bit. That might be occasioned by the change at the top. That might be occasioned by the beginning of the rundown of the Balance Sheet or it might require further Interest Rate hikes. I think the markets generally take the view, rather complacently, that Central Banks stand behind them. Jonathan in terms of complexity as an economist, youve got to make a forecast for 2018, tax policy could dictate what the next fed chair does and shape with the Federal Reserve rate hike platform will look like over the next couple years. Robert muellers probe, who knows what that could do to the agenda down in d. C. How do you forecast anything beyond this week . Peter well, like i said, you have to make some kind of guests. The Federal Reserve have been has been pretty clear about the ways these Interest Rates going over the course of the next 12 or so months. I think that is a reasonable assessment. We would go along with the idea that another Interest Rate hike is likely and maybe three in the course of 2018. I think that is a reasonable assumption on which to start. On the assumption that the u. S. Economy continues to grow at a that sets think things up nicely for a reasonably stable market background. Taxes could derail it. I think it is more of a u. S. Issue than a Global Markets issue. In europe, we probably spend much less time worrying about it. Jonathan great to have you with us, peter dixon from commerzbank. A special thanks to the very busy Michael Mckee. Coming up on the program, a legend, mark mobius. He will be joining us right here in new york. In new york as we count you down to the beginning of a new trading week, futures are a little bit negative after fridays monster gains for tech. This is bloomberg. David im david westin. Lets see whats going on around the world this week. Tomorrow, the bank of japan will announce its latest policy decision. David davis will be questioned by the house of Lords European Union committee about the state of brexit talks. Sticking with the u. K. , on thursday, looking at the bank of england Rate Decision and inflation report. As we know, there is an awful lot happening right here in withngton dc, as well expectations of a mueller indictment, naming of a new fed chair, a tax bill, and the fomc meeting coming up. We welcome our chief while it washington correspondent, kevin cirilli. Let me put you on the spot. What is the thing you are most focused on this week . Kevin today is mueller monday. The question is who will receive charges . We are going to be hearing a lot about the Foreign Agent registration unit. That is the disclosure laws requiring folks to disclose who exactly they are lobbying for in regards to a foreign entity. We have heard a lot about former Campaign ChairmanPaul Manafort and general flynn. It will be interesting to see whether or not they were disclosing who they were doing business with. That could be a key part of this probe. They say this is not likely to have too much of an effect on the ability for congress to move forward with their policy agendas such as tax reform. Next week begins the markup. David how much does this matter to things like tax reform . In the naming of a fed chair. Do we have any sense of why the president is holding off . He keeps teasing us. Toin i thought he was going announce in an Instagram Post on friday. I dont think that anything this week good move the timetable marker. Markets arent is that. As for tax reform, these hearings are scheduled. Kevin cirilli in washington, thank you so very much. Kevin thank you. David there is a lot on the agenda this week and the anticipated indictments from Robert Mueller threaten to cast a shadow. Bill gavin warned our colleagues on surveillance not to read too much into a molar indictment. I think that probably we are ahead of ourselves with respect to this whole mueller affair. First of all, nothing should have come out already. You cant say anything, it is supposed to be sacred. Im not sure there is going to be any arrest. David for his take, we recommend welcome back to the program terry haines from washington. Welcome back to the program. You are a veteran of washington. You know washington well. Put this all in perspective. What do we know about the mueller investigation, what dont we know, and what does it mean for things like tax reform . Terry in terms of the investigation itself, there is some reportage that somebodys about to be indicted, that a grand jury has agreed with what the prosecutor wants to do and has returned a true bill and that they will move forward on something today. You know him anything else that we know today is probably more to leaf reading than anything else. I thought kevin did a nice job of setting that up. Reading intea leaf washington over the weekend, it is not likely this is going to be anybody big or connected to the Trump Administration or that the behavior has much of anything to do with the core issues of trumprussia collusion. Think itlt of that, i is not likely to affect the congressional schedule that much. Is mueller does something and takes an action that strikes at the heart of the trump residency, than what you get is some dislocation and some discombobulated with a time schedule. If that doesnt happen, what ends up going on here in getington is that you Still Congress moving forward on major initiatives like tax reform. It is not about trump, it is about them. David assuming this is more noise than signal come a what about the schedule we have heard out of republicans . How realistic is it to get a bailout by thanksgiving, something to the president he can sign by the end of this calendar year . Terry i have called that schedule aspirational. I think what is not particularly well understood is that if youve got momentum going in the congress and the leaders clearly think they do, what they want to do is keep up momentum. They want to push as hard as they can to keep the momentum going. Number two, if you want to counteract the lobbying surge that is already starting to take place come of the thing that you want to do is make sure and get all your members together and get them voting and get them pushing on the broad parameters of tax reform, knowing that you can fill in the details later. There are details in the broader sweep of the aggressively lower tax rates. David thanks so much for joining us today, terry. , a massive prounity rally in spain in the political turmoil. This is bloomberg. Taylor this is bloomberg daybreak. It is a big takeover in the homebuilding business. Is bought and a deal that creates the largest homebuilder in the u. S. The deal values the company at 5. 7 billion. Novartis is making a bid to strengthen its oncology portfolio. Billione offered 3. 9 for advanced accelerator applications. The French Company makes diagnostic and therapeutic products for cancer and other diseases. Akzonobel confirms it has had talks with its u. S. Rival about merging its paint and coatings business. The axaltas biggest shareholder is Warren Buffetts berkshire hathaway. Jonathan nk you thank you. The catalan president is facing up to 30 years in jail of declaring independence. Spains government is taking action to take control of the region. The latest from barcelona. Maria, great to have you on the program. Where is the catalan president now . Maria that is the big question in barcelona. He was ousted from office on friday after he made that declaration of independence. I can tell you we have been here for hours. This is his place of work and he has not shown up. It is fair to say that he has not put up any fight yet. We are getting unconfirmed reports that a state prosecutor will press charges. The question is that it could be a sedition case or there could be a rebellion against the state charges. Jonathan what the Prime Minister would like requires cooperation from the regional police. Is he going to get it . Maria that is a big question. We have talked about this on the show for many times. If you dont have support on the ground, its very difficult to implement reforms in catalonia. Catalan Police Forces and the spanish forces were meant to Work Together and we know how that went. It seems that things are going smoothly to date and that the Catalan Police is cooperating in removing some of these officials from office. Jonathan just quickly, what is next on the agenda, as far as markets are concerned . What is the guide . Maria that is a good question. I think it is actually what they want to get clearance on is whether we are going to get resistance from the catalan government. Today was a crucial day. It is the first day of this new republic, allegedly. What we are getting so far is that they havent gone to work. Puidgemont has been out of the radar for two days. He has not called for any protests. He said he wanted a peaceful response to this end we have not seen any of him. We know he spent the weekend in his hometown. Allave not seen him at today. It was not the confrontational response we were expecting. Jonathan great work, as always. As far as the markets are concerned, spanish stocks are rising, bonds advancing, the euro just a little bit stronger, as well. To bring into the conversation, peter dixon of commerzbank. The story in europe is one of political chaos and economic euphoria with the confidence numbers out. How do you full those two pieces together . To downplay i tend the politics, actually, because what we are talking about with spain is serious. It was described as the biggest constitutional problem facing you are europe since the second world war. I dont buy that. I think the rest of europe is shrugging it off and investors are focusing on the strength of the euro zone economy of a focusing on what is happening in germany, france, even signs of more activity growth in italy. Things look reasonably solid. Things might change if we were to see the Political Climate worsen. The germanhrough election and the French Election without any real upset. Confidentseem pretty that the environment is reasonably stable and they are looking ahead to a year or possibly two years of decent growth. After what has been a very difficult 510 years. Jonathan at the same time with a positive story, equity market multiples are not expanding. Is that because this is still europe and people feel differently about it or because it does not have the tech sector that the United States has . Peter well, i think it is true that investors have a little bit more caution with regard to equity on this side of the pond, but that is a good thing. When you look at what has happened to u. S. Equities in particular, we look at the multiples, we look at the index investigators expect it to correct, which may or may not be the case but in europe, we have not seen the same runup. Investors are not concerned about the bubble that is building up in european stocks. As a consequence, i think there is a little bit more juiciness to go consume assuming the politics will not derail it. Jonathan where is the juice left to squeeze . Where is it . Equities innk it is property. I did calculations recently, about if you were to look at the ratio of European Market cap to gdp and compare what was happening in the United States, youve got potentially 20 a coupleer here over of years. I think that is definitely a positive. We are seeing lots of interest in property, particularly in the German Market right now. Jonathan peter dixon from commerzbank sticking with us. Coming up, mark mobius. He will be joining us in new york in just over an hours time. We begin a new trading week. 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. It will be a person who hopefully will do a fantastic job. And i have somebody very specific in mind. I think everybody wil