We are waiting for macys earnings to go across, and we look at you updated when they go across. Talking about a weaker dollar. Done 5 10 of a percent. Over all, you are looking at a nikkei that got wiped out. Really confused traders and market participants. Yen shooting up after that. I am taking a look at the contents, q 10s, flatter. Copper is an interesting options move. 10,000 copper by december of next year, started trading at 4. 5 million in on my trade. Jonathan i just assumed you have a bloomberg inside your head and you saw the earnings coming through. Coal, positive 0. 1 . And totalter sales coming and up 4. 32 billion. Estimate was 4. 3 billion. Inline if you are looking at sales. Here is the picture. Down 7 10 of a percent. A lot of retail coming through. Macys as well. Keep it right here. David earningspershare must a little bit. . 72, couldsed to be part of the reason ecb red number. That part of the reason you that part of the reason you might see red up there. First word news. Emma republicans releasing their tax plan today, but it will only be a concept. The text of the bill would not be written until the finance committee finishes their proposal. According to people familiar with the matter it would keep the number of brackets at 7, the house plan reduces it to four. The wealthiest people in saudi arabia trying to protect their fortunes from an asset freeze. This is in the midst of an anticorruption drive. The saudis have arrested dozens of former officials and Business Leaders and have frozen their bank accounts. President trump says the u. S. Trade to visit with china is out of control, but he puts the blame on his predecessors, not china. The president spoke in beijing alongside xi jinping. He said he is committed to opening of the chinese economy. And they announced a quarter billion dollars in trade deals, although many of them are tentative. 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. David the president says he has Good Chemistry with e. G. Jumping, and when he appeared with the president he was out of his way to make it clear he did not blame the chinese for the trade problems we have. President trump it is a very onesided and unfair one, but i do not blame china. Who can blame a country for being able to take advantage of another country for the benefit of its citizens . I give china great credit. I do blame past administrations for allowing this out of control trade deficit to take place and to grow. Tom mackenzieome reporting today on the telephone from beijing. The president has been talking about trade to visit with china. Does anything he is doing over there put a dent into the trade deficit . Tom we have had a string of deals, 250 billion number that the u. S. Side has been telling us. On some of details those committee 37 billion deal involving about 300 aircraft, 43 billion deal with an Energy Company here, in terms of infrastructure in alaska for example. And another deal with about 12 billion with smartphone providers, but there is a caveat, many of these are nonbinding and many are in the works already. Boeing, a lot of the orders, they are all holders. In terms of the overall picture and deficit has been key for trump, he will hope some of these deals will pull the deficit down or push it in the right direction. In terms of what the executives you speak with here, the u. S. Executives, we have not had any concrete moves with the chinese. Financial services, nothing yet in concrete terms. Nothing new from the chinese on north korea. David you referred to u. S. Ceos, i think 30 different ceos are with the president. Are they disappointed in this . We heard a lot of there would be a lot of progress in opening up chinese markets, are the u. S. Executives disappointed . Tom some of them have been working hard on these deals and we were there when ford announced a partnership, producing electric vehicles in china, and they were disappointed in the outcome. But we have heard from some executives at these are tales that were lined up already and have been crowbar into the event. You talk about the summit in marijuana go, the personal alago,ship in mir and the personal relationship between the president s, so yes we have big dollar ticket deals but we have not got what executives really want, which is attempting to lower the trade barriers in some of the key sectors, particularly with Financial Sectors. We have not had in this visit, but it could come. In technology, there are Big Companies trying to grow their footprint in china and is something that they come under pressure from from chinese authorities when they are trying to send set up ventures in china. David tom, thank you. Jonathan for more on the impact of the president s trip, we are joined by russ. Lets go back 12 months in forecast what this might have looked like. I imagine it would have looked like this. 12 months ago people were worried about trade wars, all sorts of friction, and what people have focused on over the last told months has been the positive. People are much less concerned and focused on the trade issue, then with the case preelection. Jonathan asian markets, bring up the chart. We are searching on the msci. Down at the bottom of the screen, anybody that follows any kind of rsi, it is quite something. Trading at almost 84. What is the story . Russ a couple of things. Very field them have to do with donald trump. Go back and think about parts of the world that are still cheap after the bull market, most of them are in asia, whether youre talking about japan, emerging markets like south korea, a lot there. World bargains are particularly for those that are shooting up, remember we saw the dollar rally and that puts pressure on emerging markets. For most of the year the dollar has been soft and it has created an atmosphere for this market that most did not expect. Alix talk about tech. Russ that is part of it. When you look at the rallying em, it is not very dissimilar from the u. S. You have make it Cap Tech Companies beating and do have a similar dynamic in asia with internet companies, alibaba doing phenomenally well. Jonathan great to have you with us. Coming up, we take a look at the tax markup. And a member of the Senate Finance committee will be joining us exclusively to discuss the Senate Version of the bill. That is later. A lot of retail earnings coming through. We are looking at the midpoint missing estimates, stock down over six percentage points. We were looking at sales, pretty much in line. Earnings missing estimates. We are down by almost 6 in the premarket. From new york city, counting down to the market opened in new york just over two hours away, osing alltime highs clsin yesterday, now almost down 10 points. This is bloomberg. David this is bloomberg. Im david westin. Today is the day for tax reform with the white house, i am psychomotor house of representatives set to complete the market of their bill, and of the senate giving us the first look at their approach. We welcome our chief welcome we will much of correspondent, kevin. Tickets to the house. Will we get a final markup today . Kevin this is the marathon markup, and it is expected to end later today and it means all attention will go into next week on whether or not the will be voted on on the floor of representatives. If they pass the bill, the Senate Must Pass something. We anticipate the finance committee today will reduce only the framework of their version of the tax bill, so no complete bill or version, but taking the first step again to keep them on pace to get something done by the end of the year. David just an underline under that, we will not get legislation language today, just an outline. Kevin there will not be the big thing, it is just a skeleton. It is getting folks frustrated, but it is a strategy to continue to move forward with this version, with their strategy of getting an idea for the end of the european. We have seen potential for there to be divisive things, such as mortgage reduction, such as a host of other things, local taxes that section as well. It is unclear whether or not we will have definitive answers on the senate including those. David thank you. Yesterday, treasury secretary Steve Mnuchin sat down in an interview with michael mckee. He said although he is open to delaying a Corporate Tax cut, his preference is to make it effective right away. Our preference is that the Corporate Tax rate starts next year, the longer we wait the worse it will be for the economy and making Companies Competitive and we look forward to working with the senate. Learn mike, what did you from the secretary about the white house approach to tax reform . Michael they will be flexible, because on the senate side they are in a situation where they need to meet the target under the rules of 1. 5 trillion. Less like himover estimated about 1. 7 trillion, so it cannot fly in the senate. They are trying to figure out how to put the pieces together in one way to do that is by delaying the Corporate Tax effective date, that will make the out years less expensive and it could get them closer to the solution. They have to be flexible, they have to not rule anything out. David 28 have a sense that the white house is cheating on the senate side, with reports that President Trump dialed in from asia last night for a meeting, with Democratic Senators to say you will like the Senate Version . Michael two calculations, one is that the house being overwhelmingly republican is desperate for some kind of victory with the election losses on tuesday, and they will vote for just about anything. Therefore with a newroom margin in the senate, they want to make it the vehicle. They want both of them to pass. Basically use the senate bill as the vehicle to get a tax bill out of conference, that is the goal. Alix here is how the market feels. We are looking at high tax rate versus small cap and the normalized the basis over the last three months. Slow and steady to the upside. You have a high tax rate starting to roll over. Russ, what do you make of that . Russ i think the market is lukewarm. You have seen it not just within the equity market, but with rates. Some of it with relief over powell getting the chairmanship, but there is pullback because of concerns about the tax deal. You have seen it also with the dollar. You look at the assets that surged last december and optimism about tax reform, they have pulled back. Alix on the flipside, bank of america had a good survey, taking a look at private wealth clients and bad they are at the lowest cash level. There is hesitation, but it seems maybe like they are buying stocks in some ways. Russ it has much more to do with the low rate environment. You still have an environment where people are desperate for yield, stocks may be expensive but they are cheaper than bonds, and it is driving the movement to equities much more than excitement over the tax plan. Jonathan what is the problem, execution risk or that it is on the table . Russ both. It is not a done deal. There is uncertainty on whether or not you can pass it. And how much of it will give a boost to the economy. We know the cuts will boost earnings in 2018, but beyond that how much do you put in the increase for gdp for example. Jonathan i we moving away from 20 upfront to possibly seeing this thing phase over several years . Michael that is one possibility, there are a lot of moving parts. One thing we can say is the postcard is gone. You look at the past three regulations and you will not find taxes on a postcard. Alix oh man. Michael i know. But there is no saying where this will end up. One thing we here in washington, and i would love to get russs view, it does not matter what is in the bill so much as there is one. If it does not pass it shows the republicans cannot govern because health care failed as well and of the stock market sells off tremendously. Russ that is the difference between a wall street perspective and a washington perspective, i get that if you are a congressman thinking about reelection, but thinking about the market is it is not obvious that it will create the tailwind we wouldve thought about a year ago. Are there ways it could hurt . Will you see pullback if you take out the deductions . I do not think enthusiasm is there, at least the way the packet is been described. David is it will not create the tailwind, what changed . Did they learn something different, is it a different plan . Russ a couple things, the magnitude. We are talking about a much more modest deal them perhaps people thought. It is not be wholesale, simplification of the tax code that people envisioned in 2016. It is hard to say this is reminiscent of the 1986 tax reform, at least on the individual side. David michael mckee, thank you for being here. Russ will stay with us. Regulatory questions on at ts plan for a takeover of time warner. The Ceo Randall Stephenson challenging the antitrust division. We will take a look at what it means for the deal. From new york, this is bloomberg. This is bloomberg daybreak. This is your Bloomberg Business flash. Investors are not convinced by barberis new strategy. They have plunged after sketchy details were presented of a plan that includes sharpening the luxury image of the brand. Morgan stanley said the plan a yearut earnings by 15 in 2019 and 2020. And fannie mae helps american borrowers purchase houses, and soon it could help fill them. The giant is considering pilot programs to address the lack of affordable housing. The plans could make it cheaper and simpler for progress and for homebuyers to get loans to build homes. The battle over at ts proposed takeover of time warner is escalating. At ts ceo says he will not sell a cnn as a condition of getting the deal approved by antitrust regulations. According to people familiar with the matter, regulators and companies have addressed the assets, including the news network. The Justice Department may seek to block the deal. David at t will have to take more time to get the deal done with time warner. They said they would be done this year, but now the ceo of at t says they are not sure because of the antitrust relations. We are going to paul sweeney, welcome. What is going on . Because initially we heard this was not a horizontal merger, this is a vertical merger and normally those are not big problems. What is taking so long . Paul we saw stock decline 6 yesterday, so we were definitely surprised by the news. This is a transaction that was expected to be readily approved by regulators. It is a large transaction, 85 billion, but it is critical and it is vertical. And we have had a recent transaction where comcast acquired universal, very similar to this transaction and that was approved with minor modifications com. This was a real surprise. Investors are wondering what is behind the doj seeking a different view of this. Are there political undertones that could be emboldening the department of justice may be taking a tougher line, but it remains to be seen. David something is new. And we have two new sheriffs. One is the president and one is the assistant general for antitrust. Is this policy is different application of policy, or is it larger at the white house . Antitrust policy, typically the question is what consumer will have to pay more money . What is the argument . Is not clear and i think that is why at t is taking a hard stance. They were very clear they think that this transaction should go through and they are prepared, and are preparing, their lawyers to get ready to take this to court and challenge the doj. It feels like it is a private. We have spoken with antitrust attorneys, those that cover us here at bloomberg intelligence, saying it is very unusual for antitrust. And suggests that this is not as much a legal argument, but maybe political. David among other things, i do not remember the last time we had a Statement Issued about the negotiations while they are ongoing. They came out and said it is at t who said they want to get rid of cnn, and immediately responded to with at t saying we never said that. I do not remember that happening. Paul certain protocols are being violated and it is unusual that we see the doj litigating and public. At t probably feels like they have no recourse but to respond and to the Ceo Randall Stephenson will be speaking publicly today at a conference and will have more to talk about that. I think if youre at t, some of the remedies the department of justice is suggesting potentially, or have been reported, such as selling turner networks, it is a nonstarter because the turner networks, including cnn and other cable networks, represent the majority of the value of time warner. That is off the table. Even if directv is off of the table, both of those would be a nonstarter for at t. David at t says they will take it to court. Is that realistic . It could take years. Paul i think it is. It happens rarely, but it does happen. Frankly, the doj generally has a stronger hand in those situations, but i think at t feels so comfortable that the president is on their side, that they would feel comfortable, or at least confident about going forward. David thank you so much. Jonathan . Jonathan coming up, exclusive interview with the citigroup ceo on tax reform and how it could affect his business. This morning, here is the picture. Up aslast night, ugly, much as 2 , down as much as 1. 7 , and things looking softer for the United States. Futures off by and the earnings from retailer not great. The sentiment starting to crack. This is bloomberg. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. 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