Rebel tories are demanding the ability to alter whatever final brexit deal emerges. Into the minutes trading day in the u. S. Abigail doolittle is here. We are off to a positive start. Have more record highs then major averages. Alltime highs yesterday, and seeing it again for the dow and s p. About half a by percent. We have not had a record high for the nasdaq since november 28. We had that many rotation out of technology. A bullish start as investors anticipate the possibility that a tax bill will be presented to President Trump before the holiday break. In. Ays it is already priced if there is any sort of stall, he thinks it could have a negative impact on the markets. Today is fed day, so investors having a bullish note i had of the anticipated rate hike. This is the 10 year yield. Interestingly, it had been higher for the last cointreau days. This is the first down day in five over the last cointreau days. Over the last four days. The worldf 1 Interest Rate probability showing 98 likelihood of that possibility. This is happening some influence on the sectors, less so take a look at the imap. Lots of green. We do have eight of the 11 s p 500 trading higher. One of the true rate sensitive sectors. On bottom, financials lagging as falling rates do not help the financials and lending activity. A bit of sensitivity there. Lets go to the tech space. , upre seeing some rebound six out of the last seven days. Apple and paypal, lets take a look at paypal, up 1. 7 unconstructive comments from the moment. For a face id iphone component. Take a look at the networking 25 , its best day since 2009. The facial id component competitive market momentum. Overt the business momentum from apple market. It often comes down to apple and bitcoins. We are awaiting the outcome of the fomc meeting. Stocks down for a second day. Big data today, britain shedding jobs at the fastest pace in almost 2. 5 years between august and october. Workumber of people in fell by a negative forecast, 66,000. While pay growth accelerated, it lacked behind it lagged behind inflation. The number of unemployed also declined in that time, leaving the jobless rate as a 42 year low. Boe meets tomorrow. This is sterling against the dollar, rising. Awaiting, there is a vote in parliament that could prove a setback for theresa may. European conservatives want a line in the bill to proeuropean conservatives want a line in the bill the vote could take place in the next three or four hours. This is one of the big gains. Thens car phone, Electronics Retailer cutting its earnings guidance. It says it is going to scale back its mobile phone business. Toreduced its guidance 360400,000,000 pounds, cutting the top end by 40 million. Handsets andst of incremental gains in technology were discouraging britain from trading up to the latest models with dear with the later than normal introduction of the iphone x pushing sales into the second half of the year. Vonnie thank you for that. In alabama, doug jones won the special election for a Critical Senate seat, defeating that has in a state not sent a democrat to the senate since the early 1990s. For his lost further trimming the Republican Senate majority. A referendum on the president , or were Republican Voters simply responding to the scandals surrounding moore . The electoral ramifications given that crucial question, kevin . The democrats would argue this is a referendum on President Trump and his agenda. I talked to a lot of Republican Voters on the ground of this deeply conservative state, and they said this is really a decision about whether or not they could get behind roy moore. He denies the allegations, and a lot of people believe them here in the state. Becoming then, first democrat in more than a generation to fill a senate seat in alabama. On the flipside, other things to take away from this. ,itch mcconnell is emboldened his supporters would argue, because he wanted a different republican candidate to challenge the democrat. I spoke with sources close to steve bannon who said they believe mcconnell is to blame. It depends on who you ask. I can tell you that President Trumps majority in the senate is now razor thin. Fromtold that im told one prominent republican lawmaker, that this will have no impact on the ability to get tax reform done by the end of the year, expecting a final vote by monday or tuesday at the end of final vote by monday or tuesday next week. Vonnie what have you been able to gather from Steve Bannons camp about what this offset means for his kind of strategy Going Forward . They are going to double down. They feel this was a lot of missteps on the part of Mitch Mcconnell and the urging of the republicans not to fully embrace roy moore. They also feel that president , many markets did not go fully in as they would like. One source said they really wanted President Trump to meet with roy moore, but ultimately, the president decided not to. He did record a robo call. , and didnt get it. This race in alabama took on a much more took on meaning in alabama and outside of the country. Turnout was way up, especially among the africanamerican community. I think that everyone i spoke really understood that. I think that is another take away that folks should remember. Mark could the misconduct charges against moore have painted the party for years to come, if he had emerged victorious . Is there a way of looking at this for the gop, having dodged the bullet in some way . Kevin that is a great point. I put that question to two or aree aides, and they breathing a sigh of relief. One strategist saying they are relieved that roy moore lost, simply because of the point that you raised. For them to have to defend roy moore or have a decision of whether or not to expel him or have every single Midterm Election race in 2018 have this be a type of issue that folks are going to have to answer to, they wont have to do that anymore. We should note that al franken, the democrat from minnesota, announced last week that he was resigning. I would watch the special election race in western pennsylvania, Congressional District 18, about whether or not as trump carries that district i 10 plus collection points. Im hearing from republicans, but they are watching that as a bellwether. Vonnie Kevin Cirilli in montgomery, alabama. Lets check in on the first word news. More fallout from President Trumps decision to recognize jerusalem as israels capital. Palestinian president Mahmoud Abbas says palestinians month except any roles in the middle east any roles for the u. S. In the middle east these process. On capitol hill, Ron Rosenstein will be hit with a beverage with a barrage of questions about Robert Muellers meetingation, with the of the House Judiciary Committee getting underway. Want to know about what they call they have tried to raise doubts about the motives of his looking into the Russian Election meddling. In new york, Authorities Say the case against the would be suicide bomber was to be open and shut. A federal Prosecutor Says he has made it clear from his hospital bed that he was on a mission to punish the u. S. For attacks against islamic state. Theresa mays brexit bill goes back in front of the house of commons today. Party rebels are announcing are wanting more, before attempts to implement any brexit eu. 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. Up, crew resuming its advanced toward 58 a barrel. Futures in focus is next. This is bloomberg. Live from new york, im vonnie quinn. From the i mark barton city of london. This is bloomberg markets. Lets get to it futures in focus. Spokeec secretarygeneral with bloomberg about the progress opec is making in cutting global supply. We are making significant progress with our nonopec friends in the oil markets to return to stability. We are continuously seeing regions, bothall crude and products. Nejra joining us mark joining us is the president of blue line futures. Market next year. He seems to suggest it is going to happen soon. What is your take . I do think the market is going to get closer to the balance they are looking for. Likely it can be achieved. The question is, are they going to keep up a productive second half of next year . That will rattle the market. They have expressed quite the ,oncern about u. S. Production coming back on the market from u. S. Production by the end of 2018. That might be underestimating, because i think we will see u. S. Production continued to come on board as long as prices are above 50. I have a bearish outlook after my target of has been achieved, and i think this market we going to learn on the stockpile product in roughly 14 minutes time . Getting fromwe are the api data last night into the data today is exactly what we. Ant to look for, being bearish we had a massive drop from api yesterday, and this sets the bar for what bia is. Expectations are a little over 3 million barrels. Eias expectations are with the market, then they will go lower. Think the api report sets the tone and allows the markets to go lower. You are bearish. What is the key question you want answered by the fed a little later, when they are widely expected to raise rates again . I cant wait for this meeting. When i look back on last years rate hike, it surprised the market. With their hawkish tone, they put out three rate hikes. We are going to achieve that today. I think they are going to back away from that hawkish tone. Going back to 2016 when they did that, they set an expectation in the market that they would be hawkish, and relative to perception, this is the most hawkish you will see the fed Going Forward. I dont think they will surprise the market again with that kind of hawkish tone relative to expectations. Dovish they can be a bit. The epi read missed expectations. Its going to get done, but they cant plan on that, either. Im talking 8487 in the dollar index next year, potentially by the end of the first quarter. Mark bill of blue line futures. It is time for the latest Bloomberg Business flash, a look in some of the biggest business stories in the news right now. Honeywell has, with the 2018 profit forecast and warehouse automation equipment. Honeywell is trying to speed up add to costowth to cut and efficiency gains driving earnings. And havetal entered a lengthy legal battle that threatens in 18 billion deal. That could have derailed the sale of toshibas flash memory business to a group led by bain capital. Have cut the u. S. Company off from the future supply. Plans to fire more than half of its 64 hundred workers in israel over the coming months according to an israeli business newspaper. They are trying to cut costs in dollars in debt. Still ahead, a critical vote on the brexit deal in the house of commons. One rebel tory what rebel tories demand that could put the Prime Ministers government on shaky ground. Vonnie this is bloomberg markets. I am vonnie quinn in new york. Mark and from our European Headquarters, i am mark barton. Theresa mays flagship brexit bill returns to the house of commons for its seventh day of scrutiny. It looks like the government might lose conservative proeuropeans. Meanwhile, eu chief negotiator gave high praise to Prime Minister may for agreeing to the divorce terms last week. I personally want to say, in response to a member of commons, that the Prime Minister, theresa may, is courageous and respectable, and i certainly respect her. Lets bring in Bloomberg Brexit editor emma ross thomas. The rebels with various concessions and promises, or will it not work . Said i fear we have reached the end of the road, have been in they suggestions. He thought at one point they were making headway, and said he is going to push ahead with this amendment. What it does is it says basically, parliament has to have a binding, meaningful vote before brexit can be said today isay that the wording of the amendment would tie the governments hands and essentially make harder the smooth and orderly brexit that they seek. Would bindingy the governments hands its hands are bound anyway, according to a promise that theresa may made. Why would this make it more binding . Maybe you can hear me now. My question is, is the promise any less binding than something written in law . Absolutely. David davis came out and wrote a letter to lawmakers saying there would be a vote. Theresa may said the same thing in parliament today. What rebels want to see is that it is enshrined in law. U. K. Politics is quite volatile at the moment, so the promise of a politician may not be around in months time. If she lost would it be a massive blow . It wouldnt look good. No one is suggesting that the government would fall over this, but it does suggest that parliament does not there is not a majority in parliament that backs mays vision of brexit. The Common Ground and commonality between conservatives and labor lawmakers who have a very similar outlook when it comes to the eu, and it shows mays vision is not necessarily backed by parliament. She has got a slim majority. Mark she did receive praise from michel barnier. Is he trying to divide her and davis . It has been kind of an antidavis week. Yesterday, he was saying we will be watching you. Is. Perhaps that is what it time will tell us. Mark and the summit tomorrow. Been lots of to and fro this week between davis and. He eu but tomorrow is fine. They rubberstamp it and we just move on, dont we . We look ahead to january, where there will be talks about transitions. Certainly, businesses are hoping it will be wrapped up quickly. In march, the talks on the outline trade agreement will start. We will keep an eye on what is happening in the house of commons. Bloomberg brexit editor, emma ross. Here is a look at how crude is trading ahead of that data. It is higher than it has a volatile week. . 12. On capitol hill, Rod Rosenstein is being hit with questions about Robert Muellers investigation. The House Judiciary Committee meeting underway. You can watch it on tv go. Mark live from bloombergs new European Headquarters in the city of london, i am mark barton. Am vonnie quinn. This is bloomberg markets. We are waiting for weekly u. S. Oil inventories. A drawdown of 3. 3 million barrels. You can get complete analysis of here is abigail doolittle. The data is actually not on my machine. If you could read it, then i will point to vonnie we are seeing a drawdown of 5. 1 million barrels, larger than we were expecting. Reacting not a lot, but higher than 5 10. Found 5. 1 million barrels. Abigail, i think you have more data. As we take a look at the intraday chart of oil, we are of thelat, up. 2 , ahead data coming out. A smaller build or drawdown than expected. Not bullish or bearish. Investors trying to digest what is happening with this report. If we happen to bloomberg and take a look at another chart of. Il, this is g btv 299 the blue line here is the 33 average. 3 day moving above it, about 10 below, we been very has accurate. Oil right at the 33 day moving average. I asked mike if he thinks he biases to the upside or downside, and he says the downside. If you take a look at the commercial hedging right now, it suggest that alltime high it suggests that traders think there will be a bigger build of supply in 2018. That theye opec say boosted the forecast for rivals, including the u. S. , relative to production. Weeksas over the next few could be to the downside, towards 50 per barrel. Vonnie a drawdown of more than 5 billion barrels 5 million barrels. That is really a lot more than we were anticipating. Lets check in with the first word news. President trump back in the Alabama Senate election lost, and the president pointing the finger at the party. Democrat doug jones defeated republican roy moore in a stunning upset. Republicans moore was accused of making sexual advances toward teenagers. Inflation picks up in the u. S. Thanks to Higher Energy prices. A percent from previous months. When you take out food and fuel costs, inflation unexpectedly increased just. 1 . We will get a decision on raising Interest Rates later today. Rex tillerson the u. S. Is ready to negotiate with north korea without preconditions. He says that before talks can begin, the u. S. Wants a quiet period without nuclear or missile tests. Not signaling a major change in u. S. Policy. The Trump Administration plans to talk with qatar and the uae about allegations they spent billions of dollars on according to people familiar with the matter, the u. S. Will seek amendments to financial transparency. U. S. Airlines have argued that have complained that character global news, 24 hours a day. Powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra. Nie lets get back to bc to washington, d. C. Roy jones unlikely to be seated before the senate votes on the tax plan, it is likely to make republicans nervous. Todd buchholz previously served as the white house director of Economic Policy under president george h. W. Bush, and has written a book called the price of prosperity. Have the odds for tax reform changed since yesterday . Higher,nk the odds are because the republicans had better get this done before christmas. Before mr. Jones is seated. It makes it more urgent. If republicans cannot get this done by christmas, they will go home and hear from constituents, some of whom will be complaining