Ross spoke to bloombergs Francine Lacqua over reports that he did not disclose a business relationship with Vladimir Putins soninlaw. It has to do with his ownership stake in a shipping company and its links to a Russian Energy company. Secretary ross there is improper either in the way we handled the investment itself. Francine when you keep the stake . Secretary ross probably not. I have been selling it anyway, but that is not because of this. Mark u. K. Labor party leader Jeremy Corbin wants offshore investigated including the holdings of queen elizabeth. Documents from a law firm show that the queen made a serious investments in a Cayman Islands fund. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Julia live from bloomberg world that was in new york, im julie chatterley. Scarlet im scarlet fu. Joe im joe weisenthal. Julia stocks are rising, bonds are advancing, the dollar drifting from and oil its a twoyear five. Joe the question is, what you miss . Scarlet japanese Prime Minister shinzo abe seemed to extend a warm welcome to president on his visit, but he stood his ground on a trade, leaving the president and he handed. Put 33 billion of more than the line 3000 men arrested in what is said to be a fight against corruption. And disney is falling off talks to acquire fox and other assets. The news was enough to send stocks surging. Julia whatd you miss . Trade deficits and veiled warnings. President trump kicked off his historic asia trip in japan, reminding his allies that it is now america first. The japanesemp people are thriving, your cities are vibrant, and you have built one of the worlds most powerful economies. I dont know if it is as good as ours come i think not, ok . And we are going to try to keep it that way. But you will be second. Julia for more can we are joined by alex len, team leader for Bloomberg News from washington. The president is joking there, i think we can make the point. Talk about what is going on. No deals were announced him and im looking through some of the quotes from Prime Minister abe how many hours of dialogue cap we had . I believe we have never had such a close bond. Am you can tell when he is going off script, and that he pauses, and you can see the gears turning do i want to go there . [laughter] joe you say it is a joke, but so many of the trump statements are half a joke. Adam i dont find it that funny , actually. Why did he have to sleep in a slip in a dig against japan in what is supposed to be a routine president ial statement about the relationship between our countries come in and its come up by the in the midst, by the way, have a serious foreign crisis on the korean peninsula. Julia im glad you mentioned that. Did we make any progress on dealing with north korea . Pointms like that is the of the trip. It is a alex i think that trump anda abe may have been looking for different outcomes. This is all i think about north korea on the threat posed by the Nuclear Weapons and missiles programs. And so trump left without anything he was hoping to get, a concession on trade. Got whatnow that abe he wanted in terms of a closer alliance with the u. S. Against north korea. Scarlet how does this set the scene for the president s next destination . Alex which is korea that he will visit an army base in south korea and visit a major speech to the south Korean Legislature tomorrow and wednesday. Somethinghe did say interesting yesterday during his news conference, suggested that if north korea were to release japanese citizens they had kidnapped many decades in the past, there might be some sort of positive result for them. That was an interesting statement to me. Has a on this trip trump seem to avoid antagonizing or three. What im interested to see is if north korea returns the favor by launching a missile or something tomorrow. Joe alex, early on in the Trump Administration there were reports about foreign leaders feeling like they had to give thump some sort of tweetleng victory. Do they still feel that way about a year after he was elected . Alex abe certainly doesnt seem too. The only notable tweet from this visit to japan was the fish getting dumped into the koi pond. I think china is running that playbook. It seems like in china and he is going to walk away with a series of deals, and using air quotes because there may be lost to them that their initially appears. But i think that china is going to try to flatter him and shower him with at least the appearance of financial takeaway. Scarlet does that matter to the administration that some of these deals are deals, as you put it, things announced previously worked things that were always going to happen, but unveiled in a public way during this meeting . Alex well, i think the president would genuinely like to see these things translate to additional american jobs. To that extent, sure it matters. But as far as the political benefits, they will probably get a lot of mileage out of memorandum of understanding even if it is not actually a contract. Julia my understanding is that china was trying pretty hard to find deals and was struggling with the was in administration. Alex, i want to get back to what you were saying about north korea and how silent kim jongun has been in recent weeks. What do we think is going on there . If you wanted to create drama as trump headed to the asian tour, you would have up a rocket. Why do you think he has been so quiet . Alex i saw one report that they suffered a Natural Disaster at the Nuclear Testing sites. I dont think this has been verified anywhere, and i guess it is dangerous for me to scout it on air i guess it is it onous for me to spout air. They may have encountered some technical issues. It is a good question. It is a very difficult regime to read. There has been a lot of heat between the two sides, and it could be that kim jongun decided to try to cool it off. Julia sends the message perhaps when he leaves. Scarlet either way, im sure if they could have, they would have done it before he arrived. Yne, thanks so much. A world away in washington, republicans are in a sprint to rewrite the tax code. 4 frantic days before the floor vote. Republicans can only afford 22 defections, and many Sticking Points for me. For the latest lets go to capitol hill, where we have sahil kapur from capitol hill. The market began today and new. What does that mean in practical terms . The market and the four frantic this negotiation. Sahil image the house ways and Means Committee will take 40 students it of this huge bill that they just dropped on thursday and they made a technical corrections and revisions since then. Republicanany member, any lobbyist who wants to make changes, to get them through here, because the message that Republican Leaders are sending is once this will comes out of committee, it will not be open to amendments on the floor. It will be a take it or leave it proposition for members as is. The first day of the market today. There are fireworks as expected from democrats, whose generously object to the speed with which republicans are trying to push this through and provisions of a democratic that will affect the democratic leaning. Joe it is obvious that a Sticking Point will be the second note state and local stuff and that will lose a handful of republican votes from new york and new jersey. What else in the bill would like it will be the most sensitive . Sahil well, we have a new Tax Policy Center study at that shows in 2018, 12 of american households will see a tax hike and most will see a tax cut, and the percentage that sees a tax hike will rise to about a quarter in a decade, the end of the decade when the bill is passed. That will be a Sticking Point for some members across the board. A number of them will not like the fact that apart from state and local, you have the personal exemptions tax break in the donated. Large families cannot avail of deduction, standard it will not make it up for them. Then you have parochial issues Wind Energy Tax breaks in iowa, things like that. A number of conservatives are not happy with the fact that the passthrough provision, 25 rate can has limitations on what kinds of businesses can avail of it. We will expect changes this week. Julia were seeing the same tactics played out here again. They act in secrecy, then they act really, really fast. Several days of negotiations backandforth come up with but the moment this hits the house floor, it is particularly that felt. How risky is this it is a take it or leave it vote. How risky is this . Sahil it is this the if and Republican Leaders are not adequately taking the temperature of their members. I suspect kevin brady and the speaker ryan are. To ber ryan wants this his legacy issue. I think they are paying close attention, and i think they are getting feedback from their members and trying to incorporate as much of the accommodations as they can. It is a difficult balance, because i have a 1. 5 trillion they have a 1. 5 trillion deficit increase allowed in the house, so they cannot keep giving and giving without taking away. Can they fit the overall tax bill inside the 1. 5 trillion which, by the way, is only good for the house. Once it goes to the senate, a whole different set of rules. Scarlet they will have to figure out how to meet in between. Sahil kapur, thanks so much. Sahil thank you. Scarlet coming up what does the gop tax well get right, and where does it fall short . We get it take from larry summers, former treasury secretary. This is bloomberg. Julia whatd you miss . The gop is advertising its tax plan as one that will generate growth, but larry summers, former u. S. Treasury secretary, told Bloomberg Television he does not see much investment coming if the bill is made into law. Mr. Summers not very much, for 2 reasons. One, we already have record low cost of capital. Companies are sitting with large amounts of cash invested in treasury bills where they are earning 1 . If they have attractive investments, they can make them and very, very low costs right now. That is the first problem. The second is, the bill does include an element that i think is in many ways constructive, which is expensing of investment for increment. And is, when i make equipment investment, i can write it off in the first year. Think about what that means, david. If you make a one dollar investment, you get a deduction equal to the Corporate Tax rate. Profits. Share all the you share a fraction equal to the Corporate Tax rate with respect to the government. So the government is paying for the same fraction of the investment that it is claiming later in benefits. As long as that is true, the Corporate Tax rate should really have any effect on the incentive to make investment. What the Corporate Tax rate does do is tax monopoly profits. What it does do is tax rents that are somehow derived from some source of competitive advantage. Is tax thes do profits earned on capital that has already been put in place. But in the presence of expensing, it is an elementary economic principle that the Corporate Tax rate shouldnt affect the level of investment, and indeed, because of interest deductibility, it may even be that the higher Corporate Tax rate would operate to encourage investment. Now, there are more complicated aspects involved the choice of a Global Location for investment. But here come if you just take the simple us to view of it but here, if you just take the simple as if you of it all, the principal the administration is pushing is territorial taxation. They will try to tax only the. S. Income of u. S. Companies what could be more straightforward incentive to invest more abroad than that . Now, it is more complicated, because they have a global minimum tax, a variety of complexities. But at root, the taxes being cut taxhold capital, and the is being cut on income earned abroad. And i would have thought the tax reform for a would be cutting the tax on new investments made to employ new workers in the United States. And so that is where, it seems to me, that the tax bill is more responsive to the special interests than it is to the economic interests of American Families. And it was larry summers, former u. S. Treasury secretary. Julia who did that interview . Scarlet i dont know, actually. Julia couldnt believe that was one answer. Comprehensive. Larryresearch summers does not do shortcuts. Julia spelling it out. Scarlet our stock of the hour is dish network. One pointan 7 at today. The rally prompted by an analyst upgrade. A Pivotal Research analyst and they upgraded dish, change the recommendation to buy this morning, and in doing so, stuck to the m a rumor mill. They said the sheriff or present an attractive risk reward despite the tough outlook for satellitetv companies, and there is a chance tmobile could make a play for dish. This is after we had the tmobilesprint plan to merge or. If you look at the terminal, you the tmobilesprint planned merger fall apart. If you look at the terminal, you can see that dish is one of the best performance. Dish has several assets that would be attractive to tmobile. Joe once again, the spectrum, the actual holding of the spectrum that could prove valuable to a potential acquirer. Emma exactly. Spectrum, anybody who wants to buy them could be most interested in. Bloomberg Intelligence Analyst also said that the dish ceo is unlikely to lower his asking price for spectrum, and any potential deal we could see happening could be julia no surprise that this comes just as the toe mobile tmobile deal dies. Emma yes, it is very much an option for tmobile. We are seeing another Analyst Report out today saying that all cable starks could be the focus of deals. We will see a drift towards consolidation. Anat was an analyst over atcow who said that the wireless and Cable Industries will converge. See more newsto there. And we have a board that shows all of the dish a lot of is our trading higher today. Best a lot of the cable companys are trading higher today. Scarlet and we cannot forget that talks about disney and fox. Thank you very much. Julia so excited im throwing my pen on the floor. Scarlet last month mylan won approval for companies of copaxone commended drug is now launched. It is scheduled to be released in february. Just a clarification there. Julia right, lets move on. What are we talking about now . Scarlet there is breaking news. Fitch. Cut to junk by the next would be a downgrade of the credit rating. The rating has already been cut to junk, bb from bbb. Joe and this is a stock that has gotten destroyed. 35 over the summer, now at 12. A bleak downward spiral for teva, and the comment from the rating for not helping. Scarlet a bit of a rollover for the stock. This is bloomberg. Scarlet i am scarlet fu. Whatd you miss . Longer the go to market after investors are seeking cyclical stocks. We seek Cyclical Companies whose fortunes are tied to two things in the economy outperforming defensive since mid2016. There is that up up up in the blue line. Ofn with the bounceback late, you can see it has not recovered to previous levels. In the meantime, if you look at european stocks, they are underperforming global stocks, the white line for most of 2016, and a big chunk of this year, and as as you have banks as well. Llying tech is the worlds best performing sector this year come up about 41 in 2017. The next best performing group is materials, up only 23 . Julia i love that chart. We spend so much time talking about technology. From your back to the unit from europe back to the United States can and it is a well trodden path, the volatility index, the vix volatility index. What im showing you here in the moving day120day average for the volatility index system im also showing you the skew, 120day moving average as well. Could be equated to the panic index, the measure of the potential risk in markets. This is great. We have talked about this endlessly, the drop off in volatility. Look at what is going on in the potential for your next. There are investors potentially wondering about black swan. No one can tell us what is going to rock these markets. Joe it is like, if we are going to fall and we are going to crash really big. All right, one of the big stories this year is good we see the end of the great threedecade bond bull market . We thought there were signs earlier this year, but then the rate continued to trend lower. One indicator says we may be on the cusp of a return 12month 26montherage vs. Moving average. You can see these two lines going down every year. We have not seen a customer since the early 80s. For the first time the two lines are getting close. It does not cross over yet, but maybe we are seeing one of these moving averages cross back up. One indicator julia i am probably the only was looking at that. Joe i saw it from someone else who reported it. Scarlet the market close is next. Less than four minutes to go before the close. This is bloomberg. Bonnie what what did you miss . Stocks are rising. Trump is in asia. Img julie a chatterley. Iarlett i am scarlet to am scarlet fu. Joe i am joe weisenthal. record highs and gains across the board, although the dow was little changed. The s p gaining about 3. 5 points. Energy shares were the big winners today, up on the day. Joe not huge moves, but green still counts. you can see that sprint is down 11 point 5 as talks with tmobile are officially over. That stock at taking a big hit. Michael kors, the luxury retailer, having its best season. Estimatesell above last quarter. Thirdquarter samestore sales declini