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tv   Bloomberg Markets Balance of Power  Bloomberg  October 19, 2017 1:00pm-2:01pm EDT

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gridlock.tical the most divisive fight in congress are said to convert on it that is that bitter partisan clash could result in a government shutdown. madeleine albright joins me to talk about a range of issues, including iran, north korea in president trump's upcoming trip to asia. senator bob casey talks about the current battle over tax reform one day after he met with the president at the white house. what he thinks the president needs to do to five milligrams on relief for the rich and the middle class. ♪ david: confusion on capitol hill after a few days of flip-flops on a health care fix. president trump has signals his opposition to the alexander
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murray deal to shore up obamacare exchanges. senators are pressing forward on the bipartisan deal. let's go to eric watson live on capitol hill where they are sent introduce the health care bill on the senate floor. the president saying yesterday he was not satisfied with the bill. our beginning to see some changes to it? do we have an indication of what he like to see changed? eric: we don't really know yet. trump has said he does not want to see insurers enriched by this plan. there already is language in the bill that the x -- directs cost-sharing payments to benefit consumers. it is not clear how trump would be mollified. his budget director earlier signaled he wants to use this for some kind of grand bargain with democrats, to get the border wall funded. there is a sense they are looking at a bigger deal towards the end of the year and they are playing that hand. shery: he spoke with senator alexander just yesterday. how confident did he seem that
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he can convince president trump and other gop members the bill is not really a bailout for these insurers? eric: alexander and trump have become phone buddies. they talk to each other again last night. according to alexander, they continue to work through this. otherser said to me and this bill will become law by the end of the year. we have a big piece on bloomberg news talking about how everything is getting filed under this year into spending bill. the government needs to be kept open after september -- november 8. this cost-sharing payments and immigration and the wall all getting piled on that. there are many that worried this could end up collapsing, resulting in a government shutdown. david: let's focus on the week at hand. we can talk about the rest of the year after that. i imagine you in your colleagues are swelling coffee over the budget resolution. any indications of how that will
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proceed? eric: typically it does take a process called voterama. they can offer unlimited the nimitz to embarrass republicans -- unlimited amendments to embarrass republicans. they can come back and said he voted against this or for this. however, chuck schumer wants to keep things focused on this tax plan. they are bringing of amendments to show the tax plan is slated to increase the deficit, more benefits for the wealthy than the middle class, and get republicans on record defending that to embarrass them. schumer is trying to limit the amendments, probably leading to the build of the passed in the evening hours. any democrat could come forward and offer an amendment. we are prepared to be burning the midnight oil. about the's talk potential government shutdown with federal funding running out on december 8. he couldccain saying
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actually for c government shutdown for the first time since 2013. ,ll these issues you mentioned what needs to be prioritized for that not happen? eric: mccain is on the side of the fence haw -- defense hawks. others will not support another stopgap temporary spending measure. there are caps in effect now and they want to see $54 billion or more increased. democrats want to see the same increases for domestic spending. all the spending cuts that some conservative fiscal hawks want to see. that is the baseline problem. now they are adding immigration to the issue. trump canceled the daca program effective in march where brought, children here as undocumented children, would be deported. the border wall, which is tied
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into the mind of trump to each other. and this issue of obamacare payments. all that could be carried on this bill. members have suggested that. however at one point does the bill collapse. we see a shutdown. david: let me ask you about the story published this morning. it seems like there is progress made on this controversial salt provision, state and local tax reduction. they could be made just for property taxes in particular. farther indications that would be enough to sway members of congress in places like new york, new jersey, california concerned about the elimination of that tax reduction? eric: that remains to be seen. states that most uses this reduction, ginger zee -- new jersey, they are try to split the group of republican house members to find enough members to support this
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tax bill and get over the line. this is one proposal. peter king of new york suggested a cap on the people that make more than $400,000 per year in adjusted gross income unable to access this benefit. the choice of maybe being able to duck mortgage -- did not mortgage -- decduct mortgage. the senate just voted in favor of possibly reducing the salt reduction. there are not a lot of republican senators from high tax states. the issue is in the house. shery: thank you eric watson reporting from capitol hill. on top of that, hectic schedule for congress. we see a selloff in the markets after four days of gains and record highs. let's get a check on the market with julie hyman. smallerhe selloff a bit than it was in the session as investors and traders talk about
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this being the anniversary of black monday, october 19, 1987. there was a risk off tone coming into the day. it is something folks have been chatting about. more perhaps tied to a selloff in hong kong overnight. we are seeing the declines moderate. nasdaq still the underperformer. at one point today was down about that's not quite double what we see right now. if you look at the s&p 500, pretty dramatically it is office lows of the date that it just after 10:00 a.m. it is now paring back to 1/10 of 1%. we looked at this chart yesterday but i love it so much. look at the daily percentage change in the dow jones industrial average. you can see october 19, 1987 very clearly. you can also see nothing is eating approaching that, particularly if you look at the most recent decades when we have seen the declines and gains really shrink, particularly year
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to date. i would encourage you to read the oral history of black monday on bloomberg.com. really fascinating read. back to today and what we see move. increases we are seeing and stocks at a helping moderate some of the sick lines. adobe systems seeing a big gain after earnings. the company coming up with a forecast for fiscal 2018 that traders are saying is a good one and it indicates resiliency and oppressive sustainability in its digital media business. juston announcing an added over 600,000 regular monthly customers last quarter. its shares up 2%, lifting telecoms. s earningst -- it also beating. david: former secretary of state madeleine albright will join us to discuss america's role in the before president trump travel to asia. this is bloomberg. ♪
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♪ shery: welcome back. this is bloomberg markets. let's get it check on the first word news. mark: president trump today said his administration's response to hurricane maria in puerto rico deserves a perfect 10 rating. the comments to reporters came during an oval office meeting with puerto rico's governor. the scale of one to 10, president said i give ourselves a 10 because we provided so much so fast. the governor said to the president, you responded immediately, sir. talan leaders can declare independence as early as next week. separatist lawmakers will meet in the parliament on monday to
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discuss a potential timeline of the announcement. leaders are moving quickly to minimize the risk of losing radical factions. earlier today, spain's prime minister used his most powerful legal weapons to take direct control of the administration, invoking article 55 of the spanish constitution. german chancellor angela merkel is calling for cuts in european union financial assistance and it helping turkey get ready for eventual eu membership. speaking in brussels, she said the country has taken a troubling direction on democracy and the rule of law, but he also praised turkey for helping to stop the massive flow of migrants into europe as part of a deal with the eu. opec is sending its strongest signal yet that oil production cuts may be extended until the end of next year. the cartel said preparations for the next meeting are taking their lead from russian president vladimir putin.
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putin has tentatively about out in favor of nine more months of cutbacks. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. shery: thank you. secretary of state rex tillerson is heading to the middle east and south asia on friday, his latest of a medic mission focusing on the conflicts in iraq in syria and containing iranian influence in the region according to the state department. this comes after president trump's controversial decision to decertify the iran nuclear deal. the secretary of state faces global crises on multiple fronts. david gora is joined by special guest who knows the feeling. join here by a former secretary of state madeleine albright. great to have you with me here in new york. how do you begin to prioritize? you come into a job like this one, there is so much going on in the world. have you decide where to focus
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from the beginning? madeleine albright: i do think you have to look at what is the immediate issues to deal with. but you also need a full complement of people at the state department in order to lay out with the medium to long-term issues are so you can know what direction they are going and if they fit with the overall strategy. there are things that immediately jump to the top of the inbox and some of the crises now definitely do. david: by the standards you would use secretary of state rex tillerson does not have a full complement of staff. how much do you think that handicaps somebody in the role you had? not having undersecretaries, assistant secretaries of state in certain positions? madeleine albright: it's a very big handicap. you do not do these things alone. there is no any secretary of state can know everything about every subject. i particularly like having people come in and breathe me. some of the desk officers that did it on a daily basis.
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you really depend on the expertise. these are people that are trained, loyal, very good workers, very dependable. i have to say i feel sorry for secretary tillerson trying to row the boat with one oar. i hope there is -- they are able to get some people there to help them. david: foggy bottom is a world unto its self. it must take time to figure out what happens. the secretary of state seems sure to what needed to be fixed, propositions needed to be there, what should be allocated to what. how long does it take to figure out the way places work? how quickly you come to the conclusion something was broken? madeleine albright: it is hard to pick a time. it does require some knowledge of how the place is organized and if there are things needed to be fixed. i think it kind of hurts morale if you come into a place not knowing who does what and
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automatically starts talking about reorganizing everything. the bottom line, reorganization does take a lot of political capital and a lot of time. it really helps if you know what the place is supposed to do in the first place. it does not hurt to have a fresh look, but i do think the way this all started with a lack of confidence expressed by president trump and on down the line in terms of who were the people working there, were they loyal, what is it they did. i think it really undermined the morale of people who have dedicated their lives to serving america. david: i got the sense from looking at your successors there is a lot of pride that goes and how many miles one has flown. i don't know if he can rattle off a mini you did, but he does not seem as keen to do that. how important is the role of public diplomacy to a secretary of state? we have a trip to asia coming up. you took your first one less
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than a month after the job. should he be traveling more? madeleine albright: i think there is a need to travel. we are a world power. you really do need to get around. secretarialrt is travel is kind of an action forcing mechanism. our bureaucracy has to produce something for him or her to do, and the country you are going to has to figure out how to respond to it. it is not touristy travel. it is a way to get things going. i think it is difficult to travel if you don't know who is at home taking care of the store. the problem of not being fully staffed, for if you're going abroad who is responding to your requests for information. ishink secretary tillerson kind of between a rock and a hard place on that kind of thing. i do think it's important to travel. sometimes secretaries of state have to say in washington to make sure they don't get stabbed in the back. you don't know exactly --
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secretary tillerson has a very hard job. david: the recent trip to beijing, he was a for just 12 hours. i'm sure you're familiar with the tweets the president sent out when he was on the plane back about north korea. what is that relationship supposed to be like? do you think he was undermined while he went to beijing to work in a diplomatic solution to the crisis in north korea? madeleine albright: it does help that the president says the opposite of what the secretary of state is doing. i think that relationship is obviously a key one. he got to be in the same room all the time or talk to the president. i know what a difference it makes if you're working for president who really trusts what you are doing and you have an overall look and what the strategy is or if you are on the same page. the strategy theoretically is developed in partnership. i kept trying to figure out if maybe this was planned, that it was kind of you say one thing, i will do something else and lucky people off ace.
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i'm not sure that's what really happened. one could give it that explanation. i would not have liked to have been the secretary -- in secretary tillerson's shoes at that point. david: if something like this were to happen when you were secretary, would it have given you pause to think about leaving that position? madeleine albright: you are often asked under what circumstances would you resign. i do think that i came to the point -- i never was in this kind of position, by the way. but you can only resign once. the question is do you think you can accomplish more by being a part of the team and your voice is heard? i decided some time ago i would not make judgments about when my successors should leave their posts. david: how about in the national security apparatus is a whole? it strikes me when you look at the issues the government is dealing with, north korea, iran, trade issues, the secretary is
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not at the vanguard of those conversations. nikki haley is leading it on north korea in particular. should the secretary of state be playing a more active role? madeleine albright: there are principal meetings for the national security adviser runs those meetings. it is the job of each of the secretaries the state of use of that department. that is where you really try to figure out who is in the lead and how things work. there are certain issues with the secretary takes the lead them in the secretary of state -- the ambassador to the u.n. is a cabinet member. theoretically we have a similar situation where i was a cabinet --ber and a member of the you divide the work. usually it is organized. the thing that bothers me at the moment is we are not a new country. we now had a make decisions. there is a process in place for a long time. for an outsider, for which i am at this point, it is hard to
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figure out how the jobs are divided and who does what. i hate to be too judgmental because you never know what actually was decided in that situation room as if who would take the lead on something. david: there are peculiarities to diplomacy with each country. certainly a lot with china. what would you cancel the president to focus on? there was confusion early on about what is the message on trade or this bilateral relationship between the two countries. has he distilled that to a point where it would be clear to the chinese with the relationship is today? madeleine albright: it is a very complicated trip in a long trip. to japan and south korea and china and vietnam, and that he's going to go to a multilateral meeting in the philippines. this is a complicated trip. ofre are all these aspects the relationship you are talking about. i think it is hard to say which is more important week of the all go together.
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withinly the trip to china him coming right after the party congress in china, xi jinping's considerable power, i think the main issue is i do think china is the most important relationship that we have. i do think it will be very important to figure out what we have in common. i would hope that trying to deal with north korea is the issue that is up there. obviously our relationship with japan and south korea are very important, our allies and trade is an issue that comes up. all these subjects will come up and i do think the question is how they are syncopated and how they work together. he requires a president fully briefed on the issues. or has somebody sitting by his side they can kind of fill in. that is the part that is the question at the moment. david: thank you very much for your time. secretary madeleine albright joining me in new york.
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back over to you. shery: coming up, the tug-of-war between spain and catalonia has taken a turn. the prime minister has at least a wide range of power to suspend catalonia's autonomy. will it end the region's push for independence from spain? this is bloomberg. ♪
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♪ shery: welcome back. david: let's start with the headlines this afternoon. let's do a market check instead. getting ahead of myself here. shery: it is the anniversary of black monday. 1987. we still seeing marginal drops her equity indices. we have the governor in china talking about that moment. we will see asset prices collapsing. that is the sort of panic in the markets in asia.
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the dow jones down 1/10 of 1%. s&p 500 is being dragged by consumer and tech companies. they were member weakness in apple following reports importer cuts for iphones. we have to talk about puerto rico after the break. president trump meeting with the iternor of puerto rico today was asking for more money to get the island going. david: we talked about the power situation in puerto rico. still a huge problem. how many people have access to power in puerto rico. vix easing a little bit. we had more volatility this morning. this is bloomberg. ♪ retail.
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every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ shery: welcome back. this is bloomberg markets allen's of power. that balance of power. david: mark crumpton is your first word news. pompeoia director mike
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says north korea is much away from perfecting its nuclear weapons capability. speaking at a national security forum in washington, he said it is more important united states and its allies succeed in stopping the nuclear ambitions of north korean leader kim jong-un. behave the u.s. ought to as if north korea is on the cusp of having a capability to launch a nuclear attack. president trump is backing a nonbinding senate republican audit plan, as "the first step towards massive tax cuts." the plan dismisses gop deficit concerns in favor of the party's tax-cut drive with conservatives and moderates on board. according to people familiar with the matter, did sets the stage for tax legislation that could pass later this year. california governor jerry brown has issued an executive order to help speed up recovery from the
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moat the struct of wildfires in state history. governor brown issued an order es fromspends state fe mobile home parks in manufactured homes. it extended the prohibition on price gouging during emergencies, annexed that hiring of personnel for emergency and recovery operations. zealand'scome new youngest prime minister in more than 150 years. that after the 37-year-old won the backing of a nationalist party, new zealand first,'s leader warned of a looming economic showdown. new zealand first support enables the labour party to form a coalition government. 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. our colleague sat down with rex tillerson just a few months ago. the headlines coming out of the conversation they had in foggy bottom. secretary tillerson scheduled to
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head to pakistan, saudi arabia and switzerland fairly soon. be full to the saudi-led bloc to stop the crisis in qatar. their willing to engage. the secretary says he is pessimistic the crisis will end soon. he talks about the role the u.s. will play. "to try to ensure lines of communication are open as they can be and messages are not misunderstood. we are ready to play any role we can to bring them together but at this point it is now up to the leadership of those countries." shery: but severe to puerto rico. a perfect 10 was this court donald trump is giving his administration's response to hurricane maria in puerto rico. he met with the territories governor -- territory's governor at the white house today. that is the importance of the short-term and long-term packages in congress. will need some resources.
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fema is there for the initial response. there is some rebuilding to go through. that is why we are thankful to the president for supporting these petitions to congress so we can get the resources. shery: for more let's bring in our good talent, senior white house reporter joining us. goldret, how much of his that the governor achieve on beating the president today? margaret: i think the governor's is it is important. he seems to have been extinct of understanding about how to keep president trump kind of on his team rather than working to against him, at least politically and personally. a lot of what you saw was behind the scene and in a very long public impromptu news conference that played out was the governor's gestures of respect and calling for direct u.s. help, and the president responding in kind.
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it is quite a different relationship than the one we saw playoff between the president and the mayor of the puerto rican capital. david: what is he seeking in washington? i imagine he will be with other leaders. what does the governor hope to get from washington at this point? ask has: puerto rico's been consumed by the hurricane needs. beyond that there was a sort of underlying major debt trouble. now they have become very interlinked. both because of political support among much of congress for this. republicans are concerned about some of the optics of the president's earlier comments about puerto rico. they are looking for a package on multiple levels. the hurricane, although it made life day today much were difficult and created an imperative that did not exist before. david: thank you for that update.
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for more on the latest recovery and relief efforts, let's bring in john campion, chairman and cofounder of acr energy. they have already delivered turbines the puerto rico this month. they are expected to be fully operational by october 25. let's start with what you deployed and how you are on schedule. will they be up and running by the 25th? john: i went to puerto rico on the murder -- monday after the hurricane. i went down there with some senior general electric executives. general electric builds the mobile turbines. we build them on the second jobs. we met with fema and the governor and came up with a plan that would help resolve the problem. david: are you want tracker october 25? john: yes, the turbines arrived on friday. we unloaded them and put them on
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the sites on saturday. crews are working 24 hours a day to bring these units online. shery: how many people will benefit? john: they will provide power for about 300,000 people. the majority of the power in puerto rico is generated on the south, that consumption is on the north. there are three transition lines that were annihilated. it is a difficult situation. we in the u.s. normally deal with the last mile. which are the best in the world go and deal with the last mile. puerto rico is slightly different. it is the last mile for transmission as well. david: are there situations or countries you can hold up as examples of situations that are like the ones we face in puerto rico? john: similar but completely different. fukushima after the tsunami. we signed a contract in 45 days later delivered a couple hundred megawatts into japan.
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we did the same thing in southern australia. we are building a 200 megawatt power plant in the southern part of australia. shery: i was in japan during the fukushima crisis. we saw the devastation it caused. that was interesting. to see him he just happened. authoritiesntacted even before the hurricane because you saw it coming. john: that was between hurricanes. we contacted them after the first of its for the second. there is going to be a problem with the infrastructure. two hurricanes in a row are very difficult to keep the infrastructure up and running. david: how long you for see the equivalent being there? 7 we are working -- john: we are working closely with the army corps of engineers. they know how to get things done. we will bring this power around on the 25th. that will bring stability to certainly san juan.
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depends on how fast the transmission lines can come back online. david: how much of a challenge is this because it is an island? the president talks about the relief effort that the federal government has pioneered. what complexity doesn't introduce for you in your line of business? john: we are used to doing this around the world. we build power plants in africa and asia, in difficult environments. we are self-sufficient. our project management, our staff and operations team is second to none. a lot of ex military men who understand the urgency of the situation. we go home tonight and we have air-conditioning. we can plug our phones and. we have electricity. but yourself in a situation where you don't have that and you have small children or you have a medical issue, dialysis or the like. it is very important. one thing i'm very proud about my company is we understand the
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urgency of the situation. shery: 85% of puerto ricans still without power. thank you, john campion of apr energy. coming up, senator bob casey on the senate finance committee sat down with president trump yesterday to discuss the gop's tax plan. is there room for a compromise? my interview with him next. this is bloomberg. ♪
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♪ david: welcome back. shery: let's turn to our stock of the hour. united continental is plunging and on pace for his worst day since 2011.
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is coming after the company reported earnings. abigail doolittle joining us with more on this. how bad was the earnings result? abigail: you would think it was bad based on the with the stock is reacting. they actually being earnings and revenue. that is a revenue measure down 4.4%. it is worse than expected. what is unexpected with the earnings conference call with management. let's take a look at this today charge of ual. the after our in premarket trading. they reported after hours. the stock was down. here is the open. the day plunge was around the time of the conference call. the management outlined their strategy for rising costs, capacity against falling fares and not able to explain it well. investors lost confidence. shares really taking a bit of a hit. in terms of those costs, here in orange are the costs. they are bumpy, but here is the
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yield. that is with the company makes per passenger flown. the slope of that decline is more than the cost which are expected to rise. the numbers don't add up in people are worried for 2018. david: what the analysts say about the management team that was conducting this call? a month then he had a heart attack and had to take a significant amount of time off. is this a new thing for them? it would expand difficulties. abigail: they have been together about a year. the president, scott kirby from american airlines, that was about a year ago. austerity and as -- oscar muniz is from the railroad business. the strategy to really grab share, and no speaking with our analyst earlier, he was saying his strategy at american airlines was the same thing. to really increase capacity, rising costs in a formula that
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does not necessarily work. some say that is why he left american airlines. it is not clear if that is true. interestingly, warren buffett last year got into the airlines. there is successful, but he did recently start to sell shares of united continental. perhaps some investors out there saw this writing on the wall, that he could be a struggle ahead with this new strategy. shery: abigail doolittle, thank you for that. president trump yesterday met with both republicans and democratic members of the senate finance committee and a push to sell his tax reform plan, which he promised had bipartisan support. president trump: the timing is right. i have had people on both sides. i promised not to mention the names of the people of the other side, but a lot of people are liking this very much. i think we have tremendous support. shery: why are the democrats really on board? earlier i spoke with senator bob
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casey, the democratic ranking member of the senate finance committee about where he stands. sen. casey: there was a good meeting to have members the finance committee around one table. democrats and republicans talking about tax reform is a very civil meeting, a good engagement on a number of issues. it was clear to me by the end of the meeting. still a huge impediment in the way of getting a bipartisan tax reform bill. there are basically two parts. one is the process and how you arrive at that up to this point. it is been very partisan, driven only by republicans who want to have a vote that gets them to 50 votes or 51 votes, there by stiff-arming democrats. that is the process problem. but substantively there are major challenges. for me, some concerns i have
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about the proposal. this is a unified republican proposal. number one is this is so far a huge giveaway to the rich. there is no question about that. the top 1% in just 2018 would get $146,000 tax cut. the top .1% of income earners -- a tax cut of 737 7000 $737,000. that makes no sense when we are trying to incentivize wages by getting the middle class a huge tax cut instead of giving it away to the top. secondly, the cuts that medicare and medicaid in the budget, the bill we are voting and working on voting now, the cuts to medicaid of $1.5 trillion to pay for the tax cuts in a future tax reform bill make no sense at all. i think they are obscene cuts to
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very important programs. bottom line is that the gop does not as a surly need the votes from the democrats. how are you trying to influence the tax debate? sen. casey: we have to keep making the argument that if we want to grow the economy, we have got to make an investment in the middle class. that is the way to create jobs and grow the economy. we have had a lot of history of under republican presidents with republican members of congress supporting tax cuts for the rich taste upon the old trickle-down theory. it has not worked. i think we need a new approach which is focusing on the middle class, give a much more generous middle-class tax-cut, and grow the economy that way. shery: the treasury secretary telling politico it is hard not to give those tax breaks to the rich given how much of the taxes they already pay. ok for you to give
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those tax rates to the rich if and turned it needs tax breaks for the middle class? sen. casey: i have nothing against people of great wealth, but they have done quite well for a lot of years. especially since 1980. the kind of tax breaks they have received, i don't think any group of americans have received. they have done quite well. here is the problem. we are in a circumstance will be have limited resources and limited opportunities to grow the economy. investing in the middle class is the way to do that. that is why a huge tax cut to the middle class would make a lot of sense. at the same time we have to make sure we don't destroy or undermine critically important programs for the vulnerable. medicaid is one. medicaidlion cap the which is the proposal now in the budget bill we are voting on is
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not only inhumane, it is misguided because that will meet all kinds of other problems. do we really want to say that people with disabilities, people of great means to get the h elp from medicaid because of a child with a disability, do we want to say we have to cut back on services for your child because we had to get a tax cut to people who make $750,000 or $1 million a year? i don't think that is the way to go. shery: federal funding runs out on december 8. would you be willing to simply extend the current spending authority the fiscal 2018? are you willing to see a government shutdown? sen. casey: i hope we can come to an agreement. i think we can of the government funding question, which is separate from the budget debate we are having today and tomorrow possibly. it is also separate from the health care or the tax reform debate. the government funding question
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is in front of us. i would hope the administration who now has almost total control of the government with a republican majority and republican administration, they would make sure the government is funded and stays open. we certainly want to work with them on that. casey,senator bob democrat of pennsylvania and ranking member of the senate finance committee. david: breaking news out of the republicans on the senate. they invited the president to address the meadow weekly luncheon on tuesday at 1:00 p.m. to talk about his agenda. that is scheduled to take place next tuesday, the 24th at one of 5 p.m. the next leader of the fed is still on. chair janet yellen is infected to be with the president today. some house have organized a
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campaign against her reappointment. more on this scoop next. this is bloomberg. ♪
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♪ shery: welcome back. reserve --federal president trump says he is considering five people to lead the fed when janet yellen leaves. janet yellen is one of those he is considered. it is the president's responsibility to pick the chair, but that does not mean lawmakers will not weigh in. with art-house conservatives have organized a campaign against the reappointment of chair yellen. let's bring in kevin cirilli, you had the scoop. who is leading this and what the criticism is of chair yellen that is motivating this group of lawmakers to oppose what may be the reappointment of chair yellen? kevin: representative warren davis, the man he replaced john boehner. his congressional seat in ohio. a lot of freedom caucus members
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and a lot of conservatives on the services committee are very deeply skeptical of reappointment janet yellen, who is slated to meet with the president at the white house today. she is on the short list of five quite franklyho are going to likely be named the federal reserve chair. yellen'sat is janet relationship like with conservatives so far? kevin: rockey, rocky. they have a lot of concerns about how she expanded the regulatory power of the central bank, and the international scope and now they have adopted international regulation to the u.s. financial markets. that is the point congress and essentiallymaking, she has expanded that scope internationally. the federal reserve chair does have her supporters. i spoke with several sources in the republican party all day to say they don't want her, but she
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would be number five on the list and they would be grudgingly go along if she were to be named. i can tell you really a lot of people are talking about john taylor and i spoke with two sources just this afternoon who told me the former federal reserve chairman ben bernanke has been making calls to the financial services industry in washington to say the taylor rule would not be something he would likely apply. trying to essentially modernize easethese concerns -- concerns of folks that are skeptical of the taylor rule. trying to normalize that a bit. that is really going to be interesting to see how the author of the taylor rule might not enforce it should he be named to the central bank. david: 323. you can follow the parlor game on the bloomberg, the odds of janet yellen diminishing at 13%.
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know aboutat do we who is advising the president? kevin: president trump will be in the senate next week. we should know that gary cohn is on capitol hill meeting with chief of staff for the republicans, having lunch with them. is moving quickly. steve mnuchin also carefully involved. and vice president mike pence. don't underestimate him. david: kevin, thank you very much with that scoop. shery: now for the balance of power news. coming up, an exclusive interview with rhonda mcdaniel, share of the republican national committee. this is bloomberg. ♪
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♪ fu: welcome to bloomberg markets.
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scarlet: we're live in new york over the next hour. the tax of eight in the senate kicked off yesterday with republicans winning some key votes against democrats proposals for tax rates for the with -- proposal to curb tax breaks for the wealthy. we would hear from rhonda mcdaniel. apple falling the most since august after reports of demand for the new iphone 8 are not as strong as anticipated. is the anxiety justified? ther high-profile hacks, risks of cybersecurity had become a top you are ready for the public and private sectors. we would hear from former ibm on and the ceo of mastercard with the business world is doing to combat this cyber threat.

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