tv Bloomberg Markets Americas Bloomberg September 26, 2017 10:00am-11:00am EDT
barton. welcome to "bloomberg markets." vonnie: plenty to cover including tax reform and the echo fax ceo resignation. julie hymen is here and the numbers are out. an annual pace of 260,000, less than estimated. the prior month was revised higher. new home sales month over month, down by 2.4%. a little bit of a disappointing number on the home sales front. we also have consumer confidence numbers for september, more recent numbers. the consumer confidence index coming in at 119.8, slightly
below estimates. the present situation index falling from the prior month, 120 6.1. expectations falling slightly. confidence is slightly lower than prior months. we are seeing stocks hold steady. .3%.in from one quarter to the small caps continue to if not outperform, at least pace the gains we were seeing elsewhere. small caps re-attaining records yesterday. take a look at the bloomberg for another way to look at that. the s&p 500 in blue, the small-cap index in white. we have been looking at the russell 2000 periodically. we saw the small caps make a new record yesterday and continue to rise today. over at oppenheimer has said -- could beuld be &
a sign of optimism. on the individual front, newsmakers including red-hot second-quarter estimates beating estimates. cloud solutions also completions of large deals in video rising after the company's ceo said in china at a conference that in video would provide chips to power artificial intelligence for alibaba and tencent. echo fax, we talked about how the ceo of that company is resigning. a will be replaced by seven-year company veteran. we will take more into that in a moment. their big selloff yesterday in technology. how are those faring? bouncing back. facebook am a witch steeply on the news mark zuckerberg would sell shares and abandon doing a ales for the company.
netflix was down yesterday as was alphabet. a comeback today. led by food and beverage. planninto boost profitability by focusing on fast track growing businesses. this volatility, all is calm and european equities. down by 30% this quarter. the cost of hedging is the cheapest ever. the average number of shares changing hands in stoxx 600 companies has not been this slow in 17 years. that signal complacency? the sbc has been calling for a correction since early august thing traders are pricing and virtually no negative news. german stocks rising. two point 3% gain yesterday
following merkel's reelection. pushing to just below 70. the last before crossing below two weeks later. investment strategists broadly agree that the election will have a muted impact on the country's equity market in the short term as the coalition can take months to finalize. the dax heading for its biggest monthly advance up 2.7%. it fell the last three months. the best-performing major developing market and the world this month. this is the euro falling for the second day against the dollar. the biggest two-day drop since december. the drop in the euro and german bund yields may prove short lived. the ecb policy speeches this week. merkel's coalition talks and political uncertainty in spain and italy still pose risks to the outlook. 117.87 today.
vonnie: another story breaking in the past hour. . shakeup at equifax ceo richard smith resigned over uproar over the data breaches 3 millioncted 14 americans. the interim ceo had been president of the asia operation. shares of echo fax trading is lower. payments and regional banks reporter joins us. i suppose it is no great surprise that the ceo resigned? --a lot of folks said analysts put out notes say we wish we had weathered the storm. obviously there was a lot of public outcry and lawmakers pushing for this change. it could go either way. investors under richard smith has done remarkably well until the last few weeks. there was a little tension over whether he would go. vonnie: what does the new person bring to the job? he has been there forever.
is not like we're getting new blood, some of the can clean house or fix hacking situations. jenny: he has been an interim ceo and has been with the company for seven years and was recently the asia president and ran the largest unit, the u.s. information solution unit. he is very familiar with the company. the board noted in the release this morning that they will be looking internally and externally for his replacement. mark: it should be stated that smith is not the first executive to go down in the wake of the hacking disclosure? jenny: last week we saw -- two weeks ago now. we saw their chief information and chief security officers resigned, or they departed the company. there have been major shakeups. you can see this company wanting to move forward. bloomberg's payment and regional banks reporter. thank you.
now to tax reform. not just a focal point for lawmakers, a common theme for economists and monetary policy michael mckeen joining us from the annual meeting in cleveland. michael? we're with dr. martin phelps from harvard university. speaking about tax reform. getting people thoughts. one thing we didn't address was why we wanted tax reform when we have an economy working faster. what is the benefit? not cuttingn: it is taxes or stimulating demand. it is where capital is used in economy and in the world. we have a tax system that discourages capital coming into
the business sector. that discourages capital coming into the united states, because our corporate tax rate is higher than the tax rate of other industria countries. foreignwe tax the subsidiaries of u.s. corporations causes them to leave their funds outside the u.s. rather than bringing them back home to invest here. michael: how do we know it will be used for productive uses growing the economy as opposed to going to shareholders in the form of dividends or buybacks? mr. feldstein: even if it goes to shareholders as dividends or buybacks, they will rush out to consume more. they will use those funds. they will save those funds, they would use them to invest in other companies. michael: if they bring the money back on a deemed repatriation from overseas, much of the money in 2004 went into dividends,
buybacks, mergers, and acquisitions and was not invested in software and thinks that would help. mr. feldstein: we don't really know that. we know a lot of it was used to buy back shares. what does a shareholder do with the money he got when shares were bought back? you bought other shares. maybe he but shares in a startup company. the money stayed in the economy and got invested rather than leading to increases in consumer spending. michael: you are a conservative economist. you worked in the reagan administration. one of the big concerns then was the fact that the tax cuts, unless they were offset, would increase the deficit. you made it revenue neutral. they are not talking about that in washington this year. mr. feldstein: they're not talking full revenue neutral, but in order to get it through the senate they will have to use so-called reconciliation. any increase in the deficit has to stop within 10 years.
anything after 10 years, those deficits cannot be larger than they are currently projected to be. it looks like as part of the budget legislation they will put an increase limit on the amount to which the buz budget deficit can increase of about .5% gdp. said that. have 5% gdp. we are at 71% now. if there is no legislative change according to the congressional budget office, we are heading to 91. if they don't do anything better, we are heading to 96. i don't like that. i don't want to give up the opportunity to improve our tax system for corporations, both in the u.s. and the subsidiaries of american corporations abroad. michael: there are arguments in favor of corporate tax reform.
the individual is a harder case to make given the state of the economy. after the tax cuts we saw in the early 2000's, income disparity widened a lot. are you worried that will happen again? mr. feldstein: in 1986 when we personal income tax reform, the rate came down to 28%. it is now 40%. it was pushed up a little by george h.w. bush, then pushed up a littleclinton, and bit more by obama. i think there is a case for rolling back some tax increases. michael: gator talk from congressional republicans that tax cuts pay for themselves. that is not true? mr. feldstein: they don't pay 100% for themselves. they pay back part of it through higher growth through people choosing marginal tax rates coming down. they choose to get more of their income in taxable formed rather than in fringe benefits and
perks. that reduces the revenue loss from cutting the tax rate, but it does not eliminate it. that is why we cannot bring down the corporate tax rate as much as some of the current discussion suggests. michael: you went through the original tax debate in the reagan administration. that took a couple of years before it was resolved. this administration is talking about introducing the outlines this week and having something done by the end of the year. you think that is realistic? mr. feldstein: the ways and means committee has been working on this for years. so what paul ryan and his colleagues put together was a very detailed plan. i don't think that we have to start as if we michael: are starting from scratch today. -- we are starting from scratch today. michael: how long do you think it will take? mr. feldstein: i think we will
see tax cuts in 2017. if they pass the legislation 2017, i think they will make it retroactive to the beginning of the year so there isn't gameplaying were individuals and companies try to shift their income to 2018. michael: if we get tax cuts it will probably stimulate short-term growth. does it give us the long-term 3% growth the president says is possible? mr. feldstein: i don't think it gives us an extra one percentage point in real growth. that is what they're talking about. i think we underestimate the true, real growth of gdp. that is a longer subject than we have time for now, but i've been studying how the government makes those estimates. the way that they deal with quality improvements, their failure to deal with new products, means that we are grossly underestimating how well we are actually doing. michael: so we should declare victory and go home.
we already have 3% growth? mr. feldstein: we already have more than that if correctly measured. the fact that we are underestimating it does not mean that if we estimate it more correctly that would produce additional tax revenue. the tax revenue that we get from current growth is what we get. michael: the administration is talking about no tax breaks for wealthy individuals. you think that is wise and fair? mr. feldstein: i think that the tax rates at the top -- the deal in 1986 was we will broaden the base. we will take the top rate down to 28%. it is now 40%. a lot of high income individuals say "what went wrong question mark and we go back a little bit?" from that point of view there is a case where reducing some of the top rates. for joiningnk you us.
from harvard university in cleveland for the national association for business economics meeting. vonnie: great stuff. thank you michael mckee, bloomberg international economics and policy correspondent. janet yellen will deliver her remarks on monetary policy and inflation at the national association for business economics meeting in cleveland. it is at 12:45 new york time, 5:45 london time. google, the company said to split off its shopping service to meet eu demands and the antitrust case. it was ordered by regulators to stop promoting its own shopping lts overesu competitors and give rivals fair treatment by september. that is what the eu said in june . to 5% ofbe fined up daily revenue if it refuses to comply. french president emmanuel macron giving a speech right now.
vonnie: house gop leaders holding a news conference on capitol hill. you can see speaker paul ryan. i will give you comments he has been making including the house is frustrated about the health care bill impasse. he talked about the national anthem and said it should be celebrated "everywhere and always." speaker making comments about puerto rico and the aftermath of the hurricane. saying congress will do more for hurricane victims. you can see that entire
conference on tv . go to the events section that tv . mark: futures in focus. stock prices, the pool market tensions in the middle east, gold the biggest jump in two weeks on korea woes. the bull market through yesterday, how much more upside could we see? market, i'm not looking for a lot of upside. gold needs inflation. when the transition comes to an end if they are correct with the rate hikes you will have inflation. even if the dollar goes up off the hikes, gold will probably march with it. every time we get something out of north korea you get a flight to safety havens. goes up.and yen within 24 hours as we realize it the market verbiage,
goes back. crude oil, nearly $60 a barrel. that is the highest in a year or year and a half. ira, interesting comments. they are adding to the warnings of a looming supply squeeze. isy say the oil market ending the lower for longer era. do you buy into that? into it in a certain way. here's what i say. when we had hurricane harvey, we crude becauseti no one was buying. the refineries were shot. now we have a situation where the refineries are up and .unning we depleted supplies of distillates and gasoline to a degree. we had tankers come in, but we had strong growth in china, a
major consumer, and europe, and america. we are firing on a lot of cylinders. the answer is that i think near $60 in brent will be a resistance zone in the market for a while. anywhere in the $52 area. may be if they close the spread of between brent and wti. great to see you. ira epstein with today's futures in focus. vonnie: residents of puerto rico in the dark for a sixth day. in the aftermath of hurricane maria. the devastation to puerto rico's infrastructure is worsening. and the debt crisis as well. problems on problems. this is bloomberg. ♪
humanitarian crisis. the island is reeling in the aftermath of hurricane maria. facing financial troubles. puerto rico filed for bankruptcy in may to escape from $70 billion in deb president donald trump tweeting "much of the island was destroyed with billions of dollars owed to wall street and the banks, which sadly, must be dealt with. " and problems. talk about the humanitarian crisis first. people without electricity and buildings where they can not get pharmaceuticals. even get they cannot out. flooding is still an issue. it is still a rescue mission as fema said yesterday. it is extremely serious where the senior citizens on the island, for children, for everyone on the island. hospitals are searching for fuel
for their generators the power energy. it is still a very important humanitarian issue. vonnie: even with willingness to help, it is difficult to get supplies there. difficult to get cash. difficult to even access the island in some places. .ichelle: true natural disasters in u.s. states, you can go to neighboring states. here, it is an island. you have to fly or barges have to come. that is an issue. vonnie: that is a satellite image of the power outages. it is drastic. i want to point to the bloomberg chart library, 51 point 67, the bond, declining in price now. have seen the bonds declining in price since the hurricane hit. in the short-term, this is serious for bondholders. over the long-term --
they are. we have the federal control board that is managing puerto rico. there is the federal help from fema. there is national guard troops down there. the governor has been on the ground every single day working on this. vonnie: we hope the situation dramatically quickly. our puerto rico reporter, thank you. trump or meett with lawmakers from the house ways and means committee on tax reform. bringing you the latest, this is bloomberg. ♪ who knew that phones would start doing everything?
no one else lets you do that. 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. vonnie: live from bloomberg world headquarters in new york and london, i am vonnie quinn. mark: i am mark barton. this is "bloomberg markets."
let's check in on the bloomberg first word news. french president emmanuel macron delivering proposals for reshaping europe. he is speaking right now. that is a live shot. once you open the french military to european soldiers and wants other european member states to do so on a volunteer basis. terrorism andt have a civil protection for spirit hillary clinton continues her media tour for her new book. she spoke about the effects of the election on the rest of the world with charlie rose. >>. as one huge problem that is a combination of a reality tv campaign. thanks that have never happened before. we weren't prepared. now we have to be prepared. my losing helped prepare the dutch, french, and germans to
defend themselves against some of the same forces. mma: do than watch hillary clinton's interview in full on bloomberg television at 6:00 and street time.ll some of the biggest names in finance and real estate are expected to gather in new york as president donald trump raises money for the republican national committee. people with knowledge of the preparations say a private roundtable with the president couple,r 200 $50,000 a 100,000 dollars guarantees vip access. the president's battle with the nfl continues for a fifth day. he tweeted the booing last night with the dow steam dropped to its knees was the loudest i ever heard. he said the ratings was gone except for game starts when people tuned in to see if the country would be disrespected. the president wanted to introduce a role that banned
kneeling during the national anthem. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. plan fort republican an obama repeal has been dealt a fatal blow. senator collins became the third gop senator to oppose the measure. the senate republicans have vowed to take the issue of yet again. this have for uncertain health care stocks? joining us is columbus circle investment portfolio manager. health care three hundred million dollars. we spoke when the outlook on health care was much more in certain. it looked like there was a good chance of an obamacare repeal. how have you whether the ups and downs of the health-care care sector since then? >> health care has performed some areasear with
not doing well, other areas doing well like medical devices, managed care, biotechnology, have doneical stocks fairly well. as have the two parts of controversy for health care, one being obamacare and the other drug pricing, have an fairly limited in the potential negative impacts that people anticipated in 2016. vonnie: did you get out of or into anything as you saw decline for some of the areas? oliver: as we mentioned last time we were here, we were basically selective in our hospital investment. we were along some, and short some. we maintain that position. our focus on medical devices and biotechnology are key areas where we are investing our capital. that is still the same. vonnie: i want to point to our
chart library, 56 point 90 health care estimates. forward earnings estimates for health care versus the s&p 500 are really improving. that is something you might expect. would you make of these estimates? are they real things? it looks like any change the health care is dead. there is always the sliver of a chance. typicalwhat you see is consistency of health care earnings. the groups that did get hit tended to be more on the specialty pharmaceutical groups, of the world. the person pressure and rhetoric hurt firms that tended not to have had a gory killers or killers- have category or strong barriers to entry. those companies have seen a strong decline. other than that, companies in lifech, pharmaceuticals, sciences, etc. have seen strong earnings continue. vonnie: we are not seeing tax reform yet.
given that health care has taken up so much of the legislative days in the year, it is looking less likely. will we get tax reform? you can't answer that, but what will it mean for pharmaceutical stocks when we do? oliver: there is a lot of uncertainty as to what policies would be involved in any kind of tax plan. it seems that where we are now is a more slimmed down version with less controversy on what could pass. for health care, it is important given that there is to enter billion dollars that could be repatriated if they go down that way. many companies in certain hospitals ande managed care have a tax rate of 40%. if they could get that down a be a big positive. i think they can get something done with the current administration. it has been surprising they haven't gotten anything past. it leaves doubt. lot on pricing came up a
the campaign. what are we seeing with drug pricing in a republican-controlled congress? oliver: as we talked about coming into this year, the folks that we saw involved, whether it be congress, the senate, or in terms of the individuals were health and human services, really focused on market-driven solutions to pricing. we have seen that in terms of, for instance, the fda focused on getting drugs approved quicker. a little bit of an impact already. we think that there are market-driven forces continuing. as i mentioned, we have seen pressure on some of the companies, especially in the pharma space, that took large price increases, that icing pressure now. vonnie: can you give me the percentage you are long and short? oliver: pretty even where we normally are, 50% net.
100% long, 50% short. vonnie: must be a lot of short opportunities out there. thank you for joining us. oliver marti. mark: fantastic stuff. coming up, the leaders converging in canada. .hat is on the table we keep our eye on french president emmanuel macron giving the speech in paris on the future of europe, including fiscal divergence in the eu is driving the parties. the eurozone offers a global power. the eu budget is needed to face economic shocks. the eurozone needs a common budget for investment. he says that he is pushing unprecedented reforms in france. will keep an eye on the french president. you can watch real-time on tv . this is bloomberg. ♪
mark: live from london i am mark barton. vonnie: in new york, i vonnie quinn. this is "bloomberg markets." . our stock of the hour. trading lower our shares of darden restaurant. they are known for olive garden. joining us is abigail doolittle. abigail: something is happening garden. the stock is on pace for his worst since 2015. did post an surprising sales call the 1.9% versus the estimate of 2.7% kerry that dragged on overall comp. this is over a concern.
the company has been trying to red lobster. now you have this surprise. investors are concerned. a bright spot, the longhorn steakhouse did well. that is one bright spot in the portfolio. vonnie: what about tatars scratch kitchen? abigail: that closed in 2014. there was another called suggest an integration of that could be tougher than what investors were looking for and a drain on the restaurant overall. something to keep an eye on. it could take a couple of quarters to work that through. vonnie: what about hurricanes? i imagine there are plenty of those restaurants in those areas? abigail: relative to hurricane harvey, 1%. relative to irma they expected double. hearoo big, but we will about the unfortunate impacts of hurricane harvey and are much through the rest of the year on the corporate outlook for some of these companies, but nothing
matching the devastating effects of people living there. -- on people living there. mark: time for the bloomberg business flash, looking at the biggest business stories in the news right now. executive richard smith resigns today. joining other senior managers who left the credit reporting theany amid an uproar of theft or private data of 100 43 million american ey seven-year company veteran has been named interim chief. some are calling it china's netflix. hi targeting a public offering in 2018. to people familiar with the matter, it has china's most popular streaming video service. as much as $10 billion. the biggest diamond found in 100-caret, century,
sold for 50 $3 million. that works out to almost t.0,000 a care it was a must the size of a tennis ball. it was expected to go for $86 million. that is your latest for the bloomberg business flash. vonnie: thank you. nafta officials are wading into tougher territories. negotiators meet in canada. they will tackle rules governing the source of input of manufactured goods. let's bring in carlos cap a an. carlos capistr thanks for joini us. the third round of nafta negotiations get underway today. what have you seen as an impact upon mexico from the first two
rounds and their implications? carlos: thank you for inviting me. the most important institution u.s.,e countries, the canada, and mexico have the largest economy in the world right now. it is important the institutions be updated. to be honest, this is an old treaty now. we see a lot of room for renegotiations to end up in something better for the three countries. by the negotiations are taking place, the problem is uncertainty regarding new rules of the game. this is not good for investment. we have seen some delay in investment in the three countries. therefore, this is something that we hope can end quickly and be wrapped up so that investment can proceed. vonnie: it can be a zero-sum game. goal, is for it to be a zero-sum game. donald trump is saying this cannot be to the detriment of
america in any area. how do we end up with a nafta that is good for everybody, but not bad for anybody? carlos: these three countries are very different. they all bring something different to the table. they all can benefit. the u.s., the largest market, mexico can produce things in a cheap way because labor cost is so low, then you have canada of thes the best system threeountries. they complement each other. for sure, you can work things in a way that is beneficial for all the three countries at the same time. federal elections next year. the presidential election is likely to be tight. how much uncertainty will that cause? carlos: it is causing a lot of uncertainty. we are expecting a tight election. for us, one important thing right now is that you have the
important institution, nafta, open for renegotiation. at the same time mexico is coming into these tight elections. a lot of uncertainty going on at the same time. hopefully we can resolve this in a good way. a panel. have attended canada's economy, is there life after oil? you better answer that question. is there? carlos: yes, of course. canada is booming at 4%. the average is 2%. we believe it can continue growing above potential for some time. that depends on what happens with nafta, of course, but with oil prices stabilizing and increasing, and production in the u.s. rebounding from a recession, the outlook for canada is good in the following quarter. vonnie: bringing you back to mexico, you brought up the peso. terminalchart on the
about how much volatility we have seen with the mexican peso. trading at 17.97 all the way to above 22 in january. what are the cons of the currency? carlos: we believe it will depreciate a little bit. it has depreciated the most this year for good reasons. the central bank hiked the rates a lot. now it has 7%. politics, and some consideration of the economy, we believe that the risk is for the currency to depreciate a little bit. versus 21% total return the u.s. dollar this year year to date of the major currencies. and what do we look for in terms of monetary policy? let's talk about mexico. carlos: you have to see this in the context of the fed hiking.
this is the most important for both countries. mexico already hiked a lot ahead of the fed. 7%. we believe they will remain, then find room to lower rates, probably after the election. canada seems to be hiking with the fed. we believe more hiking is coming. we have three hikes next year to bring the rate to 1.75% by the end of next year. vonnie: please visit us again. 2 fascinating countries neighboring the united states. bank of america head of canada and mexico economics. anks again. next, republican senator richard shelby. this is bloomberg. ♪
trump, is speaking at a meeting with lawmakers on the house ways and means committee. a couple of headlines, president .rump saying he is going to very comprehensive report on tax reform is coming. he also says tax reform will make taxes more simple. that is one of the goals of the tax reform plan. the plan will increase the child care tax credit. these are some of the headlines emanating from the meeting with lawmakers on the house ways and means committee. also saying that the plan will cut taxes for the middle class "tremendously." joining us, this and more from capitol hill, senator richard shelby. let's get your reaction to the planet seems to be agreed upon. will there be any more luck on this legislation than health care so far? sen. shelby: we have our
problems and challenges with health care. we probably have 47, 48, 49 republican senators together, then two or three that don't want to get on the reservation with us. we have not worked that out yet. tax reform, i think there is a broad consensus that we all want meaningful, substantive tax reform. that we can help the small businesses, large businesses, but mainly the middle class. people who do the work, pay the taxes in this country. we need to lower their taxes, and we need to do it now. vonnie: are you aware of the actual details of this legislation? sen. shelby: i have seen some of it. i have not seen the final .ackage, as we would call it we have all made suggestions to the tax writers and so forth. i have not seen the final product. i bet it is going to be a pretty good one.
vonnie: is it going to be deficit neutral? sen. shelby: i don't know about that. we will have to wait and see. it depends on how you score it. static scoring or dynamic scoring. what it is today, or what it could be with a lot of growth in the economy. vonnie: depending on what comes out, will you support it unconditionally anyway, or look for changes if there are things you don't like? sen. shelby: i don't know if i would support it unconditionally, but i plan to support it. i'm supported all tax reform packages since i have been a member of congress. i hope this is a good one we can all get behind. it is my intention to support it. vonnie: i want to ask you about the runoff in alabama, your home state. if you could make a prediction first? sen. shelby: i don't know. i believe it is going to be a close race. it will be determined by the turnout.
in a special election you generally have a smaller turnout . we had a smaller turnout in august. if there is a small turnout, i think it would bode well for judge moore. if it is larger, strange would have a good chance. we'll have to see how the turnout is in alabama. the weather is good, but people have to go vote. vonnie: who are you supporting? sen. shelby: i support luther strange. he is a good friend and a colleague. i believe he is doing a good job . a very worthy job. i would hope that he would make it tonight. people have their own minds to make up. they vote all over the board. vonnie: obviously, there has been a lot put into the strange campaign. the president, mitch mcconnell would have a lot to lose would luther word
strange lose it what would you do if justice more were to win? wins i will if he support him. i will support the republican ticket. i am a republican. i have known him. i believe if he wins he will win the general election. we have a democratic nominee that will run against either one that will win is contested. we will see. vonnie: how to get your thoughts on the next federal reserve chair. what would you like to see in a next federal reserve chair? sen. shelby: i have not made any recommendations. i have talked to the president, but i will not go into what we talked about her and we did mention the federal reserve. uphas court nominees coming for the board of governors. janet yellen's term ends in january. i believe he will appoint someone else to take her place.
ultimately, that is a to the president. vonnie: would you like to see someone attached to rules, or do you like the status quo? sen. shelby: no, i would like to see someone in there that is progrowth. our economy could grow a lot more. there is $5 trillion lying around in america looking for investment. people are looking to invest for a better return. they're getting very little in their savings accounts, in dividends, and everything else. $5 trillion would make this economy grow a lot more than -- vonnie: senator shelby, we have to leave it there. thank you for joining us. senator richard shelby. senator richard shelby.
close on bloomberg markets. mark: these the top stories we're covering from around the globe. french president emmanuel macron is laying out his vision for the future of the european union. a day after angela merkel clinched a new term in germany, the euro is falling. we will have the market moves behind politics. president trump hosts the spanish prime minister at the white house today. he makes a new pitch on tax reform, meeting with the house ways and means committee. will that lead to progress on tax reform western mark -- reform? he is a big believer in the coin another tiptoe currencies. we will have another