Anna good morning, everybody. Looks to you what has been happening in the Asian Session and what we expect for the session in europe and the u. S. Tax. E all about the stock futures and the dollar, the Market Reaction we are seeing broadly focusing on the tax. Not being distracted by trumps tweets and the activity over the weekend over the role of the fbi, Trump Administration, and ongoing investigations. That is not dominating the market news flow. What is dominating is the Senate Passing its tax legislation over the weekend. Futures demonstrating that. All of the major u. S. Indices higher on the trade today. The dollar index following with point 3 . We are seeing yen weakness, which is not helping. The yen weakness not helping. We see the asian equities session, in contrast to u. S. Futures, in limbo. There is a warning of frothy markets. Goldman sachs talking about valuations of prolonged bull market in stocks, bonds, and credit leaving measures of average valuation the highest since 1900. The question for you as Market Participants and you digest 11 weeks of bliss, does that rotation continue . This chart says it all. A big mac and fries and a chocolate milkshake as opposed to ; theres down. Semi conductors down. They lost 10 of the value last week. Up went transport, banks, and telecoms. If you believe this is a groundbreaking momentum moving tax bill and the joint tax bill and the joint Tax Committee does not necessarily believe that, is that enough for a bang for your dollar buck. That is the question the markets will ask themselves. What does that do to rotation trade . You have the vix as well. That is your conundrum. Do with it what you will. Lets welcome Juliette Saly. U. S. House republicans drafting a contempt of Congress Resolution against Ron Rosenstein and Christopher Wray on claims or have there has been stonewalling in producing material related to the trump russia probe and other matters. Theblicans come including president , have pointed to reports that the removal of an official is evidence the entire investigation has been politically motivated. The tax bill passed by republicans in the u. S. Senate over the weekend and may boost profits to industries. The plan is still subject to the existing legislation is a reduction in the Corporate Income tax rate to 20 along with the provision that allows some companies to bring back hundreds of billions of dollars of foreign profit i would at a lower rate. Thomas barkan has been chosen as Senior Executive as next president of a company. He has the support of the fed order governors in washington. The fed board of governors in washington. It wasnt clear if they voted to approve him, which is required. Brexit talks being torpedoed by the European Court of justice. While a deal on what happens to the irish border after brexit is still to be done, the role of that ecj in enforcing the rights of citizens has emerged as the greatest obstacle. That comes as theresa may heads to brussels today to meet Jeanclaude Juncker. The venezuelan president has said the nation will create its own petrol currency backed by reserves in oil, gas, gold, and diamonds. It will enable the country to advance towards new forms of international financing. The announcement highlights how u. S. Sanctions are hurting venezuelan ability to move money to international banks. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. It has been a little bit of a fluctuating session in asia. We are seeing the yen weaker. It hasnt helped the nikkei. A lot coming through on the tech players. The nikkei closing down the session by half of 1 . A turnaround coming through in hong kong and the csi 300 of the large cap stocks. We have seen insurance and tencent coming back in buying today. Some of the other stocks we are watching, wanda Hotels Rising sharply. We are hearing wanda commercial will sell one hotels stake. This is a nonbinding letter of intent to buy 60 to buy 65 of the company. Letter of intent to buy 65 of the company. From move coming through Retail Stocks in japan despite a downward pressure. Csaa fter front retailing at a twoyear high today. Manus thank you very much. Leading democratic senator Dianne Feinstein said a potential case of obstruction of justice is developing against the president. She was speaking to meet the press. Think what we are beginning ofsee is a putting together the case of obstruction of justice. I think we see this in the indictments, the four indictments and please that have just taken place in some of the comments being made. Attitude at the white house, the comments every day, the continual tweets. Anna on the subject of those tweets, trump was active on twitter over the weekend, but the comment that raised eyebrows i had toe tweeted fire general flynn because he lied to the Vice President and the fbi. Anna lets bring in jodi schneider. She will break down the latest news four. Lets start from the comments from senator feinstein. What is she getting it . Partly tois referring what she just mentioned where the president said to what you just mentioned, that the president said he had to fire general flynn because he lied. Some say this shows the president knew there was falsehood before he is saying he do this, which we didnt know previously. Senator feinstein is also referring to the president s firing of james comey, the fbi director, last earlier this year. Mr. Comey was looking into russian collusion and putting these things together, there is a case, she believes, can be made for abstraction of justice, which is a serious thing to even say. The question will be, is she going to ask for hearings . Are we going to see this on capitol hill in the forms and inquiries in the forms of inquiries . Manus this obstruction gathers momentum, how much of a problem could this be for the Trump Administration . Win ande the political donald trump federman we can this makes the republicans in principle in next years election, so how big a problem could be . Interesting timing there. They get this big win on tax reform, something they have badly wanted to deliver. They are not there yet, but they did get a big vote in the senate, and then they find out mr. Flynn has pled guilty and the president comes out with the tweet. This is the kind of thing where it doesnt mitigate the wind, but a lot of attention mitigate the win, but a lot of attention will be on the mueller investigation. Thank you very much. Jodi schneider joining us with analysis with the u. S. Political story over the weekend. Simon french joined us. Good morning to you. Lets talk about what the market is focused on. We have these potential distractions surrounding the russia probe him and clearly it is distracting the president. Then, the Senate Passing the tax bill. We see u. S. Futures pointing higher at the front of trade. Murder u. S. Assets go for you on the back of this desk where do u. S. Where do u. S. Assets go for you on the back of this . Being able toket backup a good earnings season and a pickup in u. S. Gdp, above expectations in the back end of 2017. In theselear for me geopolitical stories, very short, we saw a brief spike in gold and then it came off, and the momentum behind the coordinated earnings story and tax cuts story and the anticipation is really the thing driving markets. From a political standpoint, most americans wont feel this, any change to their tax burden, until 2019. It is difficult to see that change in the dynamics politically in the u. S. Manus our inboxes are full of notes. The u. S. Already has 3 growth level. Isnt much of a boost. The joint committee on tax fed and 8 10 percent of growth rate on average over 10 years, is that bang for your textbook bang for your textbook . Simon building on the analogy, giving the economy and digestion. Lots of convergence that needs to takes place before the senate and house bill. Gotsou potentially Monetary Policy having to be tighter in the u. S. To compensate for a pickup at almost full employment in the u. S. Economy, being able to absorb that stimulus without higher tax rates, which translates through to funding costs quicker than some of the tax pass tax package. There in lies the risk for the u. S. Not being able to stomach what is being served up. Anna where does that leave the dollar . It is doing well this morning, up a quarter of 1 . I have this chart. This talks about the other side of the story, the hedge funds positioning for bearishness. Why, when we have seen optimism on the equity market around what a tax plan could deliver them have we not seen that reflected around the u. S. Currency . Are there different narratives . Simon there is a different narratives as you head into the midterms. Of the investors i was speaking to our worried about some of the wins the president will need to get before midterms, which he may use executive orders to push through. They may be more protectionist, and that will be weighty against the dollar. Manus the other proposition in charts this morning is the extra yield in the market we are seeing bond futures in the u. S. Dropping, pushing the yield higher, and this is the point. The extra spread you get for wider since march of this year, does that continue . Do you think the bond markets reprice more aggressively . Simon i think the spread is a problem for u. S. Treasuries moving higher. It will be quite limited. That yield gap, which is going to be material. The reason i dont see u. S. 10year going anywhere towards 3 , or likely it will remain rage bound as it has for more than remain range bound as it has for more than nine months. There is no sign of a buyers strike, particularly with u. S. Gdp. Anna simon, thank you very much. Simon french stays with us. Lets you a little bit of m a news. His is prysmian the company is based in malan. We have news. Prysmian to buy general cable for 30 per share in cash. They are talking about beef synergy they will be able to get after they are up and running, they see this manus you see the drugs deal go through, and another europeanu. S. Deal go through. Coming the going up, bitcoin. Gdps more valuable than the of countries like is the wind and romania. Mike new zealand and romania. We are live in brussels. This is bloomberg. A shot of singapore there. Unchanged on the msci asiapacific. Indices u. S. Equity bleeding over in tax politics, but asia is a little bit more circumvent. Selloff int of a carmakers. Holding back a little bit in the Asian Session. Lets get Juliette Saly with your business flash. Juliette cbs help is buying , crating a healthier and retail giant. Cvs is buying aetna, creating a health care and retail giant. Named simons thompson as chairman, reinforcing an industrywide investor drive for higher returns and caution over project spending. And executivesly director at anglo american. Do plus is stepping down. While disney has renewed partssions over acquiring of 21st century fox media assets. The discussions are said to include the 21st century fox some studio and foxs stake in sky. Anna Juliette Saly there for us. Big going on the rise once again, up 5 today. Bitcoin on the rise once again today, up 5 today. It is now more available it is now more valuable than the gdp of assorted countries. It is a. Pure commodity it is a empty commodity. , if it were ag a very badt would be one. French is with us. Great people have debated what bitcoin is. The next step is the cme futures contract. 20 it ist overbought 20 of the time. Bringe regulation could daily price limits in of 20 . This could be a progressive thing for bitcoin. It could put control into the market. Just another addition to volatility . You have the extraordinary scenario where technology once regulators to get involved, which is almost 180 degrees from where the used to operate. You have the regulators not wanting to regulate and technology wanting that. That is a paradox. Bringing it into a less volatile scenario is regulators will be worried of unintended consequences of encouraging more Retail Investors into the space. For the most part, Retail Investors arent exposed to it and it doesnt represent a consumer interest problem for regulators, but as soon as you start widening the access platforms, reducing volatility to get let to get less riskaverse, it becomes a systemic problem. Anna are we there already . People waiting work to trade bitcoin. I have heard people quitting work to trade bitcoin. What was interesting to me in reading a piece is they were referencing how the cme trade can add so much to this affect to this asset. Gold, you could end up with the derivative is market with a derivatives market. That is what cme products can do to a nest that. Can do to an asset. Simon i think it is storing of the problem. Is large in terms of market capitalization, but it manyns the case, to how Retail Investors are exposed . Like this story, the danger is when you start to see significant pockets of retail money moving to this space and recognition will encourage that. It will be a signal to market precipitants that regulators are almost giving it a nod of approval. Certainly brokers are making money. 3. 40 versus 1. 70 on gold. Double your money. French stays with us. A ceo joins us at 10 00 a. M. Up next, theresa may heads to brussels. She has the challenge of aleppo time challenge of a lifetime. This is bloomberg. 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. This is bloomberg daybreak europe. It is 3 30 in tokyo. Yen. Ollar against the not helping the stock market in japan. We see weakness on the nikkei this morning. We are half an hour away from the start of the European Market open. Lets get a Market Update with guy johnson. Guy lets talk about what is going on in terms of markets. This is what is happening in japan, which is an anomaly this morning. Is the are dealing with market is not dealing with the. Olitics in the United States it is focusing on the tax story. You can see that clearly represented. It looks like we will see if percent to the upside, being added to u. S. Equity markets. We have trading and ftse futures as well. It is going to be interesting to see how the pound trades. Theresa mays lunch engagement with mr. Juncker. If we get a strong pound on the back, could that take the edge off the ftse 100 . We will see how that gets priced in. By nikkei is trading down half of 1 . Ataware of that as you look pricing taking place. I want to show you a few other things. This is the issue in the commodities space. , brent crude trading softer this morning. What you may see with gold miners is oil stocks coming under pressure and gold miners as well. Copper is reasonably well bid. Story is front and center. We will see how the pound trades around it. We need analysis of what has been described as a fluid situation going into this meeting. The issue of the irish border still one of the factors. From carsonit take later as he discusses brexit talks. Back to you. Manus thank you very much. Cable down this morning. Prime minister theresa may is battling to put out multiple to put multiple political fires at home and she is heading to brussels to end the deadlock in brexit talks. Mays conservative party set up new red lines ahead of the lunch meeting today. Nejra cehic joins us from brussels. Good to see you there. It could be a tasty lunch with some potential breakthroughs. Is that what we are picking about . Is that what we are thinking about . Nejra good morning. Unfortunately, i want to be at the lunch. At the lunch. Be in terms of breakthroughs, this is looking less likely as time goes on. About theresang mays party already putting down more red lines. Now, another stumbling block could come up through the talks yesterday, and that is about the European Court of justice. Before today we were seeing the brexit bill as a big issue. That got resolved, and then with the irish border, another big stumbling block, but we were getting signs progress was made. The European Court of justice has come up on the u k and e u side as a potential problem today. What theresa may has been saying is after we get brexit, the Supreme Court could voluntarily pass cases to do it you citizens right to the ecj. The ecj wants more of a automatic binding role on the Citizens Rights. There are three things key for youalks to move on Citizen Rights, brexit bill, and irish border. The irish border and you Citizens Rights still outstanding. Theresa may going to meet Jeanclaude Juncker for lunch at 12 30 brussels time, likely to be joined by david davis and Michel Barnier. This bill was the deadline, but theresa may put her best offer forward to move talks forward to trade. You have the summit coming up on december 14, and that is where the talks need to move on to trade to get the progress the u. K. Wants in order to avoid crashing out of the e on march 20 9, 2019. On march 20 9, 2019. Anna what do we expect to happen . We have lines coming through talks on brexit Citizen Rights to end in weeks. How do we see things progressing . Great point. S a that goes back to the issue of the fact that