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tv   Bloomberg Markets Balance of Power  Bloomberg  October 18, 2017 1:00pm-2:00pm EDT

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i am a big girl. shery: -- i am david gura. shery: and i am shery ahn. this is "bloomberg markets." david: what will take to get the gop on the same page on tax reform. president trump says he will work on both sides of the aisle to pass tax reform. meetings with the senate finance committee today. we will speak about the future of cryptocurrencies in laguna beach, california, coming up. ♪ donald trump met with members of the senate at the white house today. he still expects largest tax cut
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in history, and he claims to have support from senators of -- on both sides of the aisle. pres. trump: the timing is right. i have had people from both sides. a lot of people like this very much. i think we will have tremendous support. are you seeing signs of this bipartisan support on capitol hill for tax reform? >> the short answer is no. i think the president is going to the motions and creating outreach to democrats just to have a paper trail to support it. a lot of the democrats i have spoke with have said that this is really not the way to get bipartisan support. republicans wrote this plant without democratic support. in framework is already
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place, and now the president is reaching out to them. there are a number of things he's trying to do which they do not approve of which includes tax breaks for those at the top. pass-through tax cuts, a variety of things. so far, not seen many indications that democrats are on board. shery: are there any issues that could stall the measure? we note susan collins is leaning towards a yes. >> the budget looks likely to pass. this is just a set of the debate. the budget will not do anything by itself except create a vehicle for republicans to pass the balance -- the budget. it accrues about $43 million of additional military -- it approves about $43 million of
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additional military spending. paul will probably not support it, but they will gain support of a few others. an event last night with the heritage foundation, what can we glean last night about what he said to consider white house agenda moving forward? >> he said yesterday that democrats are obstructionist, and he launched a pretty strong attack on them. everyd they will need republican to do this. that republicans will need to be the ones to carry this over the finish line. withreally does not intone his reaching out messaging. dedicated to this though. it is his one big chance to get something done in his first year in office. he is not repealing and replacing the aca, he is not
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doing an infrastructure bill, and he is not getting a wall enate, so this is his one chance to get something done. president seems to want to move forward with that bipartisan bill, but we are getting some conflicting messages coming from both his tweets earlier today and some resistance in the house. paul rain -- paul ryan saying that he cannot be fully on board with this. where do we stand on the health care debate at this point? >> it is in a perilous place. senators alexander in murray did strike a deal. where ithas one place is likely to get through, the senate. however, speaker ryan has splashed cold water on this in the house. it will be difficult her them to
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get this through without them try to fix this law in some way. i think his constituents will put a lot of pressure on him not to bring this up. the president has not been particularly coherent on this. he has taken both sides. he said yesterday that he commends alexander and very for working together to find a way to fix this. he also said that he cannot support anything that means a bailout for insurance companies. he did describe this as a bailout for insurance companies. the tweeted this morning was a lot more negative on this, so the white house is not necessarily looking like it is on board at this point. david: thank you so much. shery: let's now get a check on the markets. julie hyman has that. julie: we are looking at the highs of the day. in pullingsucceeding above 2300 today.
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the s&p 500 and nasdaq are further into the green. i want to focus on the doubt and that outperformance we are seeing. a lot of it has to do with ibm which is rising today after predicting sales ahead of what analyst have been expecting. also say they will see a boost from the new mainframe server. goldman sachs is bouncing back and then some from lawsuits yesterday after its earnings came through. caterpillar also rising. --had an analyst raise its it raised its analyst price target on the stock. when you look at the stock which compelled the dow to 2300, we have boeing, caterpillar, home depot, and goldman sachs. goldman sachs has been a radial outperform or -- a perennial beatingrmer integer
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to the dow's gains. this is a look at the daily percentage change in the dow. obviously, the drop on monday is quite start here. just the put into perspective, if we were to see a similar percentage drop today, it would white --5000 points about a thousand points off the dow jones industrial average. david: coming up, we will talk about the future of cryptocurrencies. the will be live at conference in laguna beach, california. this is bloomberg. ♪
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♪ shery: welcome back.
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i am shery ahn. david: and i am david gura. let's get a check on first word news. >> it worked -- a worker in hartford county killed three coworkers. they are looking for the shooter who they had been a five. officials did not release a motive for the shooting. attorney general's jeff sessions told senators today he will not discuss what he called confidential conversations he had with president trump, testifying before the senate judiciary committee, he said that he is allowed to have private conversations with cabinet secretaries. toldrs of the committee sessions they intend to press him about conversations they have -- that have been had with the president especially around the firing of james comey. that thean says independence of catalonia
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depends on the prime minister trying to dissuade the leaders to back down to avoid confrontation. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. shery: top business and tech leaders are battling -- gathering at a wall street --rnal conference in a beach in laguna beach. emily chang is joined now by a special guest. emily: max, it is always great to have you on bloomberg television. i want to start with lending space in general. we have seen consolidation. the firm's model has gotten rid of a lot of the risk,but others are struggling. where do you see this gog? >> i believe we are going to enter the consultation phase where companies are going to be
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smart about underwriting and are going to be set up for long-term success. they are going to start picking up the stragglers which do not have the capital and the management teams to take on both the risk management demands and the regulatory demands in this space. emily: what do you see happening when it cut -- what you see happening with predatory lending? whatthink the promise of we have all really come here to do is to get rid of predatory lending. shining a spotlight on what is right or wrong way of doing this. to try to identify those who have been pushed out into the darker regions. i think the opportunity is still there. we are all working on it very hard. i think the attempt being made so far is very small. we are doing our part and then some, but there are still some who have access to that have no access to credit whatsoever.
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about how you us guys are trying to combat some of these trends? >> we have been scaling rather steadily over the past five or six years. we are really focused on this idea of honest finance. we want to deliver a product to the consumers which is uniquely tailored to the purchase they are trying to make, very transparent pricing that will not change. there will be no hidden fees or interest rate changes that hurts consumers and give the industry a bad name, deservedly in many ways. we have been working on that for some time. we have picked up a lot of very happy companies -- very happy customers. one of the big things we have been able to show this poin in berkeley -- at this point in
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-- atete -- in paraclete emparically is that we are able to bring credit to people who are traditionally excluded. we are doing our best to create responsible vehicles. guardrails, working to major people do not get pushed into something like that. equifax has been in the spotlight with hundreds of billions of people having a private information stolen. you were asked on stage it equifax should even exist. how do we avoid risks with this? reality that many traditional players have not yet come to terms with is that security is no longer optional. it used to be a joke in the security industry that increased
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like insurance policies, you only want to buy it the day after your house burns down. soundedest incident has a loud enough alarm to teach everyone in the industry to do themselves and their customers a favor, encrypt their data, have a real security practices. we could spend a lot of time pointing out how easy it is to fix the problem. emily: what is your thought on bitcoin? jamie dimon thinks bitcoin is a fraud. what do you think of cryptocurrencies and their future? >> i think it is a developing story. from a skeptical story, it is a little bit like a hammer looking for nails. anytime someone pitches me a new cryptocurrency based company, i apply a test and nine out of 10 that it issay
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unnecessary to bring cryptocurrency into it. the problem with cryptocurrency is inexpensively creating fully distributed, verifiable trust, and that is very powerful. itelieve we will converge on concepts and companies and fundamental improvements to our society through the usage of the block chain. i just am not sure what they are yet. i am. set out what your thoughts are about the relationship between president trump and silicon valley. the travel ban was once again stayed in hawaii. coming from an immigrant family yourself, what is a take on some of these policy directions? >> i think every policy is a little bit different. i think it is not just one man in one office. we have a government and rule of law. i believe in the rule of law that this country has committed
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itself to, but there are some policies i find atrocious and wrong. the immigration ban does not sit well with me, and i have never made it a secret. i agree with the stands on ringing computer science education to high schools and lower schools. i do not know if it is as black and white of a issue as people painted to be, but i think there are plenty of things being pushed by washington that i disagree with. interviewedently the former ceo of google ventures. he suggested that the sun is setting on silicon valley. there is a huge influx of foreign capital from softbank's which is changing the landscape dramatically for investors. what changes are you seeing in the investing landscape and valuations?
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would you echo the idea that the sun is setting? that it is setting on the way funds have done business to this point? >> i think that is right. i do not think anyone can ignore the asteroid in the room. involved, the valuations become very different. i think that is a backdrop. it probably more important trend is the fact that it feels like we are in the later stages of ,his notion of not going public raise a very late stage money, companies being told by investors that it is time to prepare to be publicly traded. it seems to be an emerging theme that i do not find wholly unwelcome. i think things are changing, and , in general, it is probably for the better in the sense that we are swinging back towards
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accountability and transparency which is something i am certainly happy about. emily: max, thank you for joining us. sherry, back to you. shery: emily, thank you. still ahead, china's xi jinping has laid out his plan for growth. investors are skeptical it will lead to any major reforms. the details coming up next. this is bloomberg. ♪
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david: welcome back to "bloomberg markets, balance of power." i am david gura. shery: and i am shery ahn.
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a three-hour conference, gigi paying -- xi jinping laid out his plan to turn china into a global power over five years. -- i started by asking him if he expects faster economic reform on this party congress -- from this party congress. >> one would hope so. the reforms over the past few years have been rather stalled. 15% implementation at best is the common consensus. indeed, coming out of the congress, that is probably the most important question. will there be greater momentum? will there be more support for the economic reform hackett they announced in 2015? i think it depends on the will
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of the from your -- of the premier. the rest of the results are pretty much anticipated. if there is a strong premier, then we can expect economic reform to take -- pick up steam. otherwise, i would expect five more years of stalled implementation. there was concern that the government would not allow the economy to slow too much. what happens after the congress? >> it is not a question of letting the economy to slow. toit did show them wanting slow the economy, then it would be undertaking the reforms they have laid out. it really is an indication of a lack of structural reforms. continued infrastructure driven
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kind of growth is not what china needs anymore. they need qualitative and structural changes. shery: when it comes to china's relationship to the world, they have been adverse to interfering with the sovereignty of other states. will china do more to rein in north korea? >> that assumption that china does not interfere with other sovereign states is false. china routinely and regularly interferes in other sovereign states. right now, they are interfering with south korea. they have all sorts of economic sanctions on south korea and north korea. the interfered with norway. they will interfere with any country that receives the dalai lama. they interfere with plenty of internal affairs. when it comes to north korea, they have begrudgingly gone along with u.n. sanctions. they seem to be increasing their
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implementation of those anctions, but they are on different page with different priorities than the united states when it comes to north korea. shery: when it comes to the united states, one analyst in north korea -- one analyst told me that he was doing a good job of handling china and north korea, because president trump is so predictable. and this case, predictability is actually an asset in dealing with north korea and china, certainly in the chinese case. the chinese really do not know what to make of donald trump. indeed, much of the world has no idea what to make of him. on monday, he says one thing, and then on tuesday he says another. that is not good for diplomacy. i think the chinese and other asian countries you will visit are really looking for -- he will visit are really looking for reassurance.
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we will see if president trump can offer that. shery: that was my conversation with a president from door to washington university. china's gdpion for growth is a slight slowdown from last quarter. david: coming up next, what we can expect in the fifth round of negotiations scheduled to start in mexico next month. that story is coming up next. this is bloomberg. ♪ . . is this a phone?
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so all you pay for is data. 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 shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david gura.
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mark: president trump says the nation faces what he calls a once-in-a-lifetime opportunity to overhaul the tax system. the president spoke today during a white house meeting with a group of senators. president trump: the timing is right. i have had people on both sides that have promised not to mention the name of the people on the other side, but a lot of people are liking this very much and we have tremendous support. mark: the president says the plan will provide the largest tax cuts in america's history. unveiled an union decision to deter attacks after a series of killings by extremists driving vehicles into crowds. >> terrorists do not stand still. they change and adapt their methods and we need to be ready to adapt response. mark: the european commission, which proposes and ensures compliance with eu laws, says
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the measures are aimed at better protecting major venues like concerts and sporting events. emmanuel macron confirms today that the state of emergency in france will be lifted november 1. it was imposed in november 2015 after the terrorist attacks that killed 130 people. praisent macron intelligence agencies and security forces were preventing 13 attacks since the beginning of the year. he stated the effectiveness of the state of emergency was no longer clear. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. shery: the senate will vote on their own budget resolution this week, and with senator collins signaling she's a likely yes, a passage paving the way for tax reform seems well within reach for republicans. the real hurdles are still to come.
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the complex process for the house and senate will work to reconcile the two, with deep-seated agreement -- disagreements across the party and across the aisle. let's bring in henrietta treyz. henrietta, thank you for joining us. how important is it for the budget to finalize this month? ms. treyz: it's critical. everyone stresses the urgency for the budget to pass by the end of this month. that's because looking ahead into november, there's a really finite amount of time for them to put a budget out, go through the process, go the regular order, it's pretty much mandatory to have eased the house from caucus on one side and senators like john mccain on the others. getting a budget wrapped up by october 31 is paramount. we have some good news.
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i do believe that we are on the right track to get a budget passed out of the senate this week. the process will start tomorrow and probably go well into the morning. are encouraged and happy to hear that senator cochran is back from mississippi after recent illnesses. he will be there. we understand vice president mike pence will be in the chair, so the tie-breaking vote is necessary, is ready, willing, and able to provide it. it will probably require it. the budget will be passed by the senate by the end of this week. the house and senate will have to reconcile their two budgets. it's been a source of great concern for us. to get a little further into the details, we are just starting to get inklings that there will be a formal conference process betweethe house d sena on their two budgets that are vy different. the good news is they are expecting the house opposition to taking of the senate budget
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and passing that to be relatively minimal. there could have been this big fight between conservatives on the right and moderates on the right, which has historically really fractured the republican party. it looks like they made strong headway to moving the process of the conference along quite quickly. they are hoping to get even the conference on by the end of the month as well. president trump raising the specter of bipartisan support for tax reform. there will be democrats who were not in favor of this and the budget process as well. what tools do they have at their disposal to slow down this process and get republicans office timetable? caps off this timetable? ms. treyz: delay and dilatory tactics can drag this process out, but the bonus -- the budget is a privileged document. once the ball starts rolling, they need to move forward. once they pass a budget between the house and senate, then they can obstruct and delay for a couple of hours or a few days,
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there's very little democrats can do to fulfill grind this to a halt, procedurally. they can try to raise other issues in the interim. immigration issues involved with daca, the ongoing maria alexander fixes a health care. and the most important would be bringing up any kind of trade deals vis-à-vis nafta that might be an issue in the next couple of weeks. shery: talking about nafta, not surprising that mexico and canada rejecting the u.s. proposal. the present expected to kick nafta again to congress. is that going to be another tactic? ms. treyz: i understand the president is seriously considering pulling out of nafta . i'm advising my clients to take this seriously. the conversations are clearly not going well. the latest round of talks, which is supposed to be held at the end of this month has been kicked to november 17. everyone knew some breathing room and some space. is that resides try to come to a
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determination on how to proceed. things are not looking good for nafta. it's not just an issue that democrats have had a problem with the president about and potentially payroll taxes, but the republican party -- traditionally a varied free ,rade oriented already -- party will have a lot to save the president decides unilaterally pull out of nafta. it's unclear how the president is considering moving ahead, but taking quite seriously the allegations and speculations that he is inclined to withdraw from the renegotiation with nafta entirely. david: this is not without precedent. if that were not happen, what with the role be with congress? we had congressman leonard lance on talking about the potential to see the president go down that path. how much power to they have over determination of a trade you like nafta? ms. treyz: the power is limited to stop the president from kicking those wheels of the motion. their power is significant, because a big bunch of the nafta
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trade agreement has been passed into law, and are going to acquire -- require law to unwind. ng community,ti it's going to be immediate. another big factor to include urinalysis will be the odds of lawsuit from a corporate -- to include in your analysis will be beyond the lawsuit from a corporate entity. anyone who has skin in the game destructiveis is a activity the president is trying to do and start a lawsuit which could require years to unwind. congress does has significant authority here. well it's not unprecedented, we in very muddy water and it is very difficult to get an answer about specifically step-by-step which component does congress have authority over, and what can the president do unilaterally. shery: the facts that talks were
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excited to next year did well into the markets. they won't fall through white away. with all the peso and the loony announcement.that how much of the price of the pullout has been priced into the market? ms. treyz: you answer that question. if the peso is rising, that's on the assumptions that the renegotiation will continue and come to a conclusion that is acceptable to all parties. the biggest fear i have from talking around town is you can present this administration with all the facts and figures you want. if the president chooses to pull out of nafta and wants to use a hard-line negotiating tactic, which he threatens on twitter and other outlets, you have a problem. whether or not they are saying the conversations will go into march or not, the conflicting information we are also receiving is that the president is quite serious, considering the pullout from labor negotiations and from nafta entirely, as early as december. this is one of the situations where trump is a wildcard and
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plays us to bigger -- a significant role. the market is not priced in the potential reality that the president might go found -- go down this route. shery: henrietta treyz. thank you for joining us. david: coming up, dead in the water. president trump and how spiegel -- house speaker paul ryan -- hopes of a bipartisan health-care fix. that story, coming up next. this is bloomberg. ♪
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david: this is "bloomberg markets: balance of power." i'm david gura. shery: i'm shery ahn.
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another bumpy day for health care, which brings us to the stock of the hour, community health. stand out in the last 12 sessions, today down 3.7%. abigail doolittle, health care is a constant theme for the stock market this year. abigail: it has been a pretty big theme. executive order for president trump around health care, and then on friday the decision by the white house to remove the health insurance subsidies. yesterday, we did have news of a bipartisan deal to restore those insurance subsidies, but now there's confusion. earlier today, president trump did tweet to suggest that he is not going to support the deal, because it has to go through both sides of congress and then be approved by president trump. there's the tweets. i'm supportive of lamarr as a person and of the process, but i can never support bailey out insurance companies who have made a fortune with obamacare. throwing in some
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confusion here as to whether or not this deal will be passed. that's having an effect not just on insurance companies, but also , on hospital stocks. let's take a look at this chart in the bloomberg, g #btv 4263 that shows just little bumpy ride it's been this year for the hospital stocks. earlier this year, really gaining quite a bit when it seemed unclear whether or not obamacare would go away. and then dipping not just on hopes or thoughts that obamacare would go away, but also, problems with hospitals themselves. hospital stocks gained 8% to 12% of their profits from obamacare, so if it does go away, that would get these stocks -- hit these stocks. insurance subsidies could be taken away and that would be negative for insurance companies and trickle through to hospitals. community health down now 10 out of the last 12 days. it's extremely. david: is there any upside?
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amid all of this uncertainty, already companies doing well? abigail: there are. many health insurance companies have pulled away from obamacare back in 2016. take a look at the intraday chart of aetna, and right around the time of that tweet from president trump, shares spiking higher because some of these companies are saying they are prepared to go in the direction that president trump signals, away from the obamacare exchanges towards health care associations plus short-term plans. we see other stocks spiking higher, including humana, cigna, united health. certainly bullish activity for insurance companies the could benefit if the subsidies do end. so many different pieces to this. speaker paul ryan says he does not support this bipartisan deal. shery: we'll continue discussing that. abigail doolittle, thank you. inid: erik wasson washington, d.c. can get us up-to-date on the messages when
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it comes to health care and health care reform. get us up to speed, if you could. the president said one thing yesterday and the message began erodenge any road -- and over the course of the evening. what's the status of this bipartisan deal between the thunder credit -- the democratic senator and public and senator, lamar alexander? erik: trying to figure what he means when he says he won't support a deal that will enrich insurance entities. lamar alexander says the deal does not enrich them, it ensures the beneficiaries, poor beneficiaries of health insurance will in fact be benefiting and not insurance companies. he's open to changes and asking the administration to put forward some language and i will amend the deal to address your concerns. talked to john-- soon, who says the deal has stalled out, in light of trump and paul ryan's comments.
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alexander says he's not looking to pass the bill today. he's thinking by the end of the year, that could be in the year-end funding bill. the bill needed to keep the government money after december 8, but democrats are not happy about that. i just talked to jon tester and premiums will of already spiked in it's too late to wait for that. trump has roil the waters once again on capitol hill with this tweet. shery: how confident does senator alexander sound of his ability to be able to convince republicans are what many perceived to be in parental moves instead of a complete repeal -- incremental moves instead of a complete repeal? erik: he's trying to sell this to the conference and build up support. i talked to orrin hatch, head of finance committee which is a big role in funding elements of obamacare and he says he does not support it. he wants to see real reform. i think it's very to say we're are going to season changes to this, certainly to get through the house. i don't know what the play is, i
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could see conservatives saying why don't we get rid of the individual mandate in exchange for this. the could be some kind of maneuvering as we get towards a final deal on this. i would expect we could see it again in december. david: designer house more important than the other? we spoke with a republican person who has of the republican senate committee and he is opposed to this on two grounds, one that it's a short-term fix and a second he thinks it's funneling money straight to the insurers. how important is it to win over someone like that at this point, or is the white house squarely on the chamber he sits in? erik: the focus is on the set, if the senate to come together on something that builds momentum. the reason i say the year-end funding bill is conservatives like mark walker and mark meadows of the house freedom caucus never vote for those bills anyhow. paul ryan has to rely on democrats to get that build on. in the house they would prefer to have one painful nasty vote and combine it all into one. that's why i think people are
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saying this is going to be a package deal at the end of the year where they do something that conservatives are going to rebel against, but they don't want to have conservatives being snubbed repeatedly. paul ryan is putting these votes on the political capital credit card and eventually, the bill will come due. shery: how much momentum is there for this, given the priority is still tax reform? could we see this on the senate floor anytime soon? erik: i don't think so. it's probably stalled. tax reform is what's on the front burner. my senate budget getting voted on likely to pass by friday and then we have all attention goes to the ways and means committee producing a bill in early november that has to be voted on. it has to get a lot of momentum on tax reform in november because by december, we are looking at the whole business of a government shutdown and there's going to be a stall out for tax reform at that point. david: iq going back to john roberts question at the white house, he asked the president what is ideal for health care reform?
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the president outlined a number of things, but it didn't seem like he had a cohesive sense of it. is there a plan? erik: there is not. that is what senator schumer has been harping on. this is a sense that the trump position shifts hourly, this frustration in both parties on that issue for sure. david: great to speak with you, helping us make sense of all of this, joining us from capitol hill. shery: plenty more coming up on "bloomberg markets." this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david gura. congressional republicans have found a way to open the arctic national refuge for oil drilling. he could open other areas the glare off limits in the obama administration. it could offset long promised
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tax cuts. is let's start with the mechanics on this. the budget resolution headed for a vote perhaps at the end of this week. how does it fit into that? jennifer: the budget proposal basically lays out an instruction to lawmakers and the senate committees to find $1 billion to offset some of these tax cuts. once that's voted on the senate then committees have broad discretion to come up with how they are going to make that money up and generate the revenue. while they discussed opening up and war and selling drilling leases there, they don't have to stop there. we are hearing many indications that there looking at the proposals involving drilling in the arctic, possibly the eastern gulf of mexico, which is walled
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off, and some other areas. shery: could it be to democratic filibustering? -- beat democratic filibustering? jennifer: because they are doing this through the budget reconciliation process, it allows them to make significant changes on a simple majority vote. 51 votes instead of the 60 and having to overcome a democratic filibuster. it allows them to want to get through this vote this week, make these changes that are somewhat controversial on a simple majority vote. david: who is responsible for this? lisa murkowski has been a proponent of opening up these lands for drooling -- for drilling. she's been a huge advocate for the drilling and she's obviously a key player. senators who are polluted for greater -- who are more -- anwrnd
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drilling. there's a good group of folks that have also been pushing for this. senator murkowski has been pushing for anwr drilling for years. david: we know a lot about the natural beauty of it, but when it comes to what republicans are talking about, the potential to extract minerals, what do we know the mineral content in anwr? jennifer: government estimates and other estimates are somewhat updated, but it indicates there is significant oil down to there. but we know from seismic expiration is different from what can be found out once you actually drill. this area is known to have a significant amount of oil, the challenges accessing it and whether that is something we want to tolerate. this,the people pushing
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lawmakers who are supporting this idea really see this revenue is coming from the initial sales of drilling leases. i think there's a real question about whether oil companies will line up in the next 10 years to buy leases in this area if they are made available, given the high cost of development in this area, the frontier area, and the alstom inevitable environmental challenges to any potential lease. democratic senator ed markey calling this a heartless republican budgetary scam. what sort of opposition does it face? jennifer: significant. folks have been trying to open anwr for decades and they haven't been able to succeed. one of the biggest attempt was a decade ago also using a budget bill as a vehicle for doing it. the environmental opposition is significant. there's a significant group of democrats that are fighting desperately on this. but the real test vote, inc. is a concern among many of them but the real test vote is this week
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and want to gets past the senate vote, there's a limited opportunity to stop this. tryingthe ways they are to fight this is not on environmental grounds, but my making the case of this money isn't going to pay out in the way it has been estimated. it's not going to be huge windfall. if you are a fiscal conservative and your concern on offsetting these tax cuts, this is not enough money to do that. , based innifer dlouhy washington, d.c. " balance ofe power" inbox. coming up on "bloomberg willts," claudio descalzi discuss oil and shale productions. that's next. this is bloomberg. ♪
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scarlet: this is bloomberg markets and we begin with breaking news. moments away from the release of the beige book, the summary of economic editions in each of its 12 districts.
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i'm scarlet fu along with julia chatterley. we can see the dow at record territory holding above 23,000 and the is a be found thousand -- and the s&p 500 gaining a new high. chris: good afternoon. janet yellen's inflation mystery continues. that's today's beige book. all 12 regional districts of the federal reserve reported modest to moderate growth. an increasing labor market tightness. they called it widespread tightening of the labor markets. indeed, we are seeing more reports of labor shortages in some areas. chancesving to pass up to expand their businesses because they can't find enough workers. the same time, overall wage inflation was modest, again. some sectors along the way are showing higher price pressures


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