tv Bloomberg Markets Balance of Power Bloomberg December 14, 2017 1:00pm-2:00pm EST
markets: balance of power." shery: here are the top stories. tax overhaul back in jeopardy. marco rubioenators and susan collins are criticizing tax cuts for the highest earners. the fcc was voting on net neutrality this morning but the meeting was adjourned moments because of an unspecified security fed. we will have the latest. -- theys enthusiasts are preparing for battle in theington to protect cryptocurrency from a new regulation and tax reporting requirements. a deeper look at the lobbying group and gearing up for a fight. ♪ shery: markets paring back.
we are seeing the dow and is picked -- s&p 500 in negative territory. let's get the latest from julie hyman. julie: we have stocks pausing as -- at these levels and going sideways at this point after the dow and s&p earlier touched records. it seems as though there is a drag from the bit -- from the material stocks. that is the group that is doing the worst. as we have had stocks continue their rally, we have also seen bond yields creep up a little bit. dividendmeant the yields of stocks is no longer as competitive with the dividend yield of the s&p 500. that is the whitehall i'm. it is looking at the ratio between the two. you are seeing what it is looking like for japanese stocks. this is the first time we have seen that yield for the s&p 500 ,elow that of the bond yields the first time since 2011. interesting phenomenon. those taking a look at
telecom stocks as we await the verdict from the sec on net neutrality. as we heard shery talking about, that meeting has been adjourned temporarily. you can see the telecom companies are trading lower than some of the smaller companies. and windstream, not necessarily what you would expect if there is going to be a repeal of this net neutrality. we will watch these stocks to see if there is any reaction. elsewhere, we are taking a look at the toy makers. the toymakers are on the rise today. hasbro which has the rights to star wars toys rising ahead the release of the next star wars movie. there has been a lot of reviews of that, largely positive. a lot of expectations of what kind of merchandise we could see push through. there is also rising as continues to be chattering about a deal at some point between these two companies. the stocks continue to gain as overall we are not
seeing as much strength on the major averages. shery: thank you. let's get a check of a live shot at the sec vote on the amount -- on the net neutrality rules. they have resumed voting. that was adjourned a while ago unspecified factor to hearing the meeting is back on. they are expected to roll back those internet project -- protections. we heard earlier that sec chair had the votes to roll back those internet protections. we will continue to bring you updates as we get them. kevin: so much to watch. so many people watching that ruling. elsewhere, there has been a legislative victory for the gop as republicans announced that the house and senate negotiators had reached a tentative deal on their tax overhaul. for the bill,itch president trump sold it as a win for everyone. pres. trump: we want to give you, the american people, a giant tax get for christmas. when i say giant, i mean giant.
a couple of republican senators are objecting to how giant the tax cut for the wealthiest earners will be. political reporter is on capitol hill with the latest. break it down. we have a few holdouts. but ultimately, minute -- momentum is on the trump administration side. >> it certainly is. it would hard to be -- it would be hard to see this collapsing. we have a couple senators were not thrilled with the fact that the changes that have been , including the top of rate cuts from 39.6% to 37% for the highest earners, that include senator marco rubio of florida who is upset that money they raised is going to the top rate cut instead of an extended tax child credit. he wanted to make it refundable. --ator susan top collins susan collins had told us she does not want to cut the top
rate of 39.6% at all for millionaires. this could be a problem for her. mean senatorhis susan collins could have more leverage in order to get those other bills she wants, to stabilize the health care insurance market? asked for those bills per chu got a commitment from senator mcconnell that risk programspass to stabilize the obamacare markets. the house is not fond of them. it has gotten a chilly reception from speaker ryan. it is unclear if i will be met. what is true that the tax bill will probably come up in -- come up for a vote before senator collins will know. she will have to roll the dice on that. kevin: roll the dice on that is facing aissue lot of pressure in her own state. let me ask you a question about the state and local taxed at auction. when we are gearing up for 2018 midterm elections, with the democrats seething -- with the
democrats on their win in alabama, could we see the districts are in play in 2018 as a result of this item in the tax reform? sahil: it is already happening. you are seeing republicans in new jerseyt and facing a lot of pressure. you are seeing their opponents highlight the fact that this tax bill a limit its the state and local texted action with an exemption of up to 10,000 for what was property taxes. it could be sales taxes now. that is -- those are significant changes. absolutely, the difficulty with tax changes is always there will be winners and losers in a reform as big as this. the losers tend to scream louder than the winners do. i feel certainly there will -- shery: we could see a final tax bill by friday. what are we expecting to be incorporated? we knew there were disputes over the corporate rate, over the dead actions -- over the
deductions. sahil: what we are hearing is the corporate rate will be set at 21%. the top individual rate, 37 percent, the pass-through entities will get a reduction of 20%. exemption. the estate tax, exemption will be double. it will not be repealed. these are the components we feel are set in stone as they negotiate. nothing is final until it is final. if they have a moment of desperation, they could turn the dial on even these items. our understanding is that these things are pretty much set in stone. shery: thank you. our national political reporter on capitol hill. secn: coming up, it chairman has the vote. what comes next for his proposal to -- on net neutrality? this is bloomberg. ♪
♪ kevin: this is "bloomberg markets: balance of power." i'm kevin cirilli in washington. shery: i'm shery ahn in new york. let's check in on the bloomberg first word news. that politico reports close confidence of paul ryan says this may be his last term as speaker of the house and that he will not stay in congress pass 2018. politico's interviewed with three dozen people who knows right. the speaker wants to serve through election day but retire ahead of the next congress. two republican senators are criticizing tax cuts for the highest earners. the opposition by marco rubio and susan collins would kill the tax bill when it comes up for a vote next week. still, neither has said they
would vote again for the package. leaders from the 2018 -- from the countries arrived in brussels for a summit on security and advancing brexit talks. lawmakers are debating whether progress has been made to move onto the second phase of future relations and trade. the eu will also officially endorse a new system of defense cooperation to streamline the way nations cooperate on security matters. the new report says american teens are losing interest in cigarettes. so much so that marijuana and of aping have now surpassed it. the federal government's national institute on drug abuse found 23% of high school seniors claimed they had used marijuana in the past month. usedthan 17% say they have a gaping device. only 9% say they smoke cigarettes. consumption of most substances was added to decade low.
-- was at a decade low. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. thanks, mark. as republicans are making their closing arguments for tax reform, how are the democrats responding in this final sprint? we are joined by steny hoyer. i just got back from alabama. i want to get to tax reform and a second. there is breaking news reporting that speaker ryan resigning after the midterm elections. what do you make of all that and can democrats take back control of the house? know what: i do not speaker ryan is thinking. he has not talked to me about it. i am not surprised. speaker boehner left because he had a deeply divided party. it made it very difficult for him to pursue rational, reasonable, positive policies. frankly, i think speaker ryan is
confronted with the same environment. maybe he thinks there is some way he could more productively serve. shery: we will have to break in for a second because the u.s. fcc has voted to end obama era net neutrality. expected.idely the proposal came last month from the fcc chair ajit pai. we are getting the vote tally and it has ended the obama era net neutrality rule. this is a move to d regulate the telecom and cable industry. is undoing the 2015 classification of broadband as a common carrier service. we will get you more of the latest as soon as we get them. for now, let's get back to the congressman. a taxe talking about reform and what happens in congress next. once a final tax bill is passed, first of all, do you expect that to carry out, to carry on?
we are hearing from different senators that they could have reservations about the final bill. rep. hoyer: again, i haven't seen the conference report. i asked the majority leader a few minutes ago, was it available to be looked at? was not.ted it i don't know exactly what they have done. i agree with you. i don't think it is a sure thing that it will pass the united states senate. first of all, what they have done is made it a bill that needs -- that is over skewed to the wealthy and america. had ause and senate bills millions of people getting a tax hike. 62% plus of the wealthiest people in america were getting 60 purdue -- 62% of the benefits. this bill would have also had an impact. i think this conference report will also have that impact of the $25 billion cut in medicare
next year. this is not a bill the american people support. the polls show they overwhelmingly oppose it. shery: cory johnson, right now, neting us on the fcc's neutrality decision for you have a question for the congressman? >> i'm sorry coming using to have the same cold we all have on the east coast. i'm curious about your take on what the fcc is saying about net neutrality. big contributors come in your most recent campaign. i wonder how you look at this net neutrality rilling and whether you think they comcast of the world should have the upper hand or companies that provide the internet? rep. hoyer: i think we are very disappointed of the fcc action and we think in a democracy, that free access -- not free, but access to inner -- to information on a nondiscriminatory basis is essential in democracy. ,e want to see all information
all users, be treated equally. net neutrality does that. we are very concerned about the action the fcc has taken. we think it was an action that was not good for the american people. kevin: i have a two-part question. to roll backg those regulations, but congressman, what can your party do in order to reverse course on that? the second, you just got off the floor and you had a 71 minute back-and-forth with mr. mccarthy. can you tell us what is going to come of that? i know a lot of folks are wondering about that back and forth as well. -- theyer: we think republican majority has not done the work of the american people. they have not given --
just ramming it through. no hearing. no witnesses. very little time to consider one of the most complex pieces of legislation that they congress passes. we think it is a very negative impact on the american people. we are pleased that the american people get it. they know what this bill does. it gives money to the rich and does not do much for the working class. that is not a good thing, when you have speaker ryan saying that is the objective of this bill. it is not. it does not do that. i think that is why senator rubio who has seen this conference report as we hear it explained advantage in the wealthiest in america even more than the house or senate bill dead, is having resin -- then the house and senate bill did, is having reservations. the last days of the session, without having
accomplished so much of what we need to do. i listed a litany of 10 to 12 things that are must do pieces of legislation that we have not passed. fcc,: sticking with the and the republican majority, and being in the minority party, how do you push back? exampleou address, for at the fcc, how do you reverse that coors given you don't have a majority? rep. hoyer: obviously, we've push back very hard. we explained to the american people who i think overwhelmingly to leave that net neutrality is the best policy for them, their families, and the communities, and their country, from that standpoint, the people are with us. what the-- frankly, american people can do and what we need to do is take back the majority in 2018 so we can address that policy with a majority in the congress and in the senate. you are right. without majority, without the
ability to put legislation on the floor, it is very difficult to change this policy. shery: we are hearing from the attorney general eric schneider, saying he will sue to stop in the illegal rollback of net neutrality. we had already heard from senator edward markey from massachusetts saying he plans to fire against the order as a legal challenge. how united are the democrats right now in trying to stop the rolling back of net neutrality rules? rep. hoyer: i think the democrats are very united for we have voted on this before. the democratic party has taken a position that in a democracy like ours, we need to have net access,ty comey equal equal treatment for those who use the internet. we think that is what a democracy should expect. and frankly, demand. so that -- i think the court
route is perhaps the only rich we have available to us now until such time as we take back the majority. which i think is more likely every day. corey: the argument on the other side was that the federal trade commission should be looking at this, not the fcc and that this went from a protection to a regulation. but it was unnecessarily bureaucratic. i wonder what your take is on that argument. rep. hoyer: i think -- i don't think that was -- that may have been the argument used. the underlying reason was they didn't like the fact that there could not be treatment from volume users or special users. -- i know i have a lot of friends in the network providers, the isps, i understand their argument. open access,at
equal treatment is the best policy in a democracy. whether it is the fcc or ftc, it is not really the issue. the issue is, do you agree with the policy or don't you agree with the policy? that is an argument i don't think is the honest argument as to why this was taken. kevin: the fcc has announced they are rolling back the obama era net neutrality regulations. the attorney general saying he will lead a lawsuit going against this. we are joined by the democrat with -- by democrat steny hoyer. let me follow up to the multistate lawsuit that could make its way through. we have seen this on the past and the strategy on immigration, for example, where state leaders were taking -- going against the administration. how significant of a strategy is this, in order to combat some of these regulations? does it really have a chance of working? rep. hoyer: i think it really
has a chance of working. pleadingsn expert on to a case that has been made as ought to becc reversed or however, it is the avenue that is available to we are a nation of laws. the courts can oversee this and say, whether it was done correctly from procedural standpoints, and then if so, was law andn the appropriate to take this action? the best way, they best way would be legislatively. this is a way. it is a way that is available. a beasley, a lot of attorneys general's the united states believe this is harmful to their publics. to their citizens in their states. so they are filing action on their behalf to ensure equal treatment and equal access to the internet. shery: you are very busy right
now dealing with the spending deal. house republicans pushing a military spending bill paired with a measure to keep the rest of the government open. will the democrats try to block the ocr and if so, are we headed for a government shutdown? we are not i hope -- for a government shutdown for we have never been for a government shutdown. the republicans, as i said on the floor, have a number -- have on a number of it occasions have shut down the government. we need to do our work. this cr we expect to come on tuesday, if it doesn't pass, will not shut down the government we have another 72 hours before -- after that. we have until next friday until the government shuts down. to reach bipartisan agreement on critical issues that must be done.
chip is certainly high on that list -- list. flood insurance for people damaged by storms is high on that list. fixing the national security apparatus for protecting the american people from terrorists is high on that list. a program for students, there are a number of items i could name five or six others that are high on the list of the things we must get done. kicking, frankly, just the can down the road, which we voted for 90 days ago, unfortunately in that 90 days, none of those have been accomplished. enough is enough of wasting time. let's do the work of the american people. maryland,ocrat of after 71 minutes on the house floor, joining us on bloomberg. in the middle of breaking news with the fcc talking taxes. we very much appreciate your time. rep. hoyer: and a speaker ryan
saying he has had enough himself. kevin: can't forget that! shery: thank you, congressman. let's stay with the fcc because and thee now voted to obama era at net neutrality rules are you are looking at the voting session in washington. we have heard from attorney general that he will sue to stop the legal robe -- rollback of net neutrality. this was widely expected, it is making waves. technology editor, cory johnson, still here with us. widely expected, rolling back as 2015 rules. cory: talking politics, think about this. top 10 or 12 campaign donors, alphabet, google youtube, facebook which is also net neutrality, and comcast. clearly, politics played a big role. the notion of what is corporate responsibility underlying this
entire decision. kevin: let me follow up on that. hows fascinating to watch silicon valley has emerged on certain issues they care about. what can they exactly do in this debate moving forward? cory: when it -- money certainly rules politics. as great question which is what is the responsibility of companies that spend corporate money to build on an infrastructure the rest of the world uses? we saw a big change in that the last 15 minutes. editor aty johnson, large for bloomberg technology, we will have plenty more coming up. don't go away. this is bloomberg. ♪
>> russian president vladimir putin dismissed allegations of collusion between the trump presidential campaign and kremlin officials. know all of this has been whonted, made up by people are in opposition to president trump. with a view to shedding a negative light to what president trump is doing and to me it is very bizarre. as if they were doing that without understanding one simple fact. by doing that the people who are responsible for dealing a blow to the entire political environment of the country. was brought onto president trump's legal team in
part because of ties to robert mueller. according to people familiar they have been having a quiet back and forth with mueller and his team over the russian investigation for months. a reportedly persuaded the president to back off personal attacks on mueller. in saudi arabia the government has unveiled a $19 billion stimulus program to boost private-sector growth through the money will be used to support housing construction and fee waivers for small businesses. the investment minister tells bloomberg the governor hopes the stimulus will create jobs. theresa may and senior members of the royal family joined survivors and family members at a memorial service for those who died in london's grenfell tower fire. some 1500 people were at st. paul's cathedral to mark six thats since the fire destroyed a residential tower block in west london. 71 people were killed. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries.
i'm mark crumpton. this is bloomberg. shery: russian president vladimir putin held his annual press conference today in moscow . in his nearly four-hour address he praised president trump's leadership record. objectively we see some serious achievements accomplished during the short span he is president. look at the markets come how they've grown. this is the trust investors show in the american economy. they have trust in what president trump is doing. when trump entered the oval office he promised a new era in relations with p utin. allegations intensify of kremlin
meddling in the 2016 election. here to talk about the ever evolving relations between the u.s. and russia is alex clement -- alexander kliment. trump andly can putin be when they are both trying to make their countries great again? >> there were these posters when trump was running saying we can make our countries great again together. they were going to do this together. in have a peculiar situation which the presidents of the countries want to give the appearance of this very warm relationship but here in the u.s. every other part of government is fiercely opposed to that outcome and is quite suspicious of that outcome. trump is on his own. putininteresting tha offered his thoughts on people questioning the legitimacy of the election. saying they are sowing discord with an american politics.
i can't help but wonder if he is secretly not so displeased about that. tin in american politics are in a state of disarray. it does help russia is the perception is that america is in disarray. this is not an ideological fight. that theno question russians were meddling in the host of different institutions. in silicon valley, and wall street. the hackings they have been behind. a couple of years ago in --vious of ministrations administrations they have worked to create some type of cyber framework with china for example. is there any possibility there can be a reset on cyber relations between russia and the united states?
>> it's very difficult to imagine. talk about having a fox in the hen house. russia stands accused by a raft of government agencies in the u.s. of meddling in the election. very difficult to see some kind of -- trump tried to float a trial balloon about doing just that early in his presidency and it didn't even pass the smell test. it's important to separate two issues in the relationship. was there an attempt by russian actors or agents to influence perceptions ahead of the election is one question. kevin: there was. >> of course. the answer appears to be yes. and that's a national security question. should we punish russia. separate question that gets overlooked in a lot of this is the fact that russia was even in a position to influence anything about the election speaks more to divides in american society than it does about the u.s. and russia. pwould guess that
utin is quite happy. to me the bigger question is why was donald trump that close to winning in the first place? what are the underlying social polarization, inequality in america that put him in a position to be that close to get that push. it's important to separate the questions. the domestic question in the u.s. to the foreign policy and national security question. soundbitedo have a from the spare bank ceo speaking exclusively to bloomberg. now it's a very difficult thing for us to work with sanctions in the european market.
and generally reduce our activities in europe. shery: the russian economy has been battered by sanctions not to mention the two-year oil slump. president putin keeps emphasizing that their economy is doing well. how likely is it that we could see some sort of a people in the country as he tries to get a fourth term in the presidency? >> almost no chance of any kind of people in the country. this is a man with an 83% approval rating. the russian economy has entered of profound stagnation but from the perspective of most russians the economy is not the number one issue. he has tremendous control over people's perceptions of him. most people watch state television. that's how they get their views of putin. and his constituency is more concerned about the chaos than plurality.
he doesquestion is what afterwards. the russian constitution says after his term ends he can't run again. all this intrigue about whether he's going to choose a successor or change the constitution, that is going to be the big question and that's what i'd be looking for. kevin: that's a really good point. the economy doesn't seem to be the number one issue amongst vladimir putin has to at least understand that because of the political system here in the united states that a lot of corporations are being incredibly wary of having to do business with the russians because of the political liability for them. a public relations mess. does he understand that? >> sure he understands that. one important point is that
legitimacy doesn't depend on public support. concerned about inward investment from american firms is an issue. but it is not the primary issue in russia's political economy. there are questions about what putin is willing to do after the election to address the economy being too dependent on oil and deeply corrupted. we have been hearing promises about when he would decide to move on that for years. , thank you.kliment great thoughts. shery: breaking news on steinhoff. resign from will his supervisory board.
11.7% in the down last trading session. it has taken quite a hit in the last couple of days falling more the last sessions. the company owns subsidiaries, distributes furniture and household products. who was seeking to stabilize the embattled retailer will be resigning from his supervisory board. more details when we get them. kevin: house freedom caucus member and ohio congressman warren davidson is going to join us to talk about all of the latest battles in funding from the u.s. government. this is bloomberg. ♪
kevin: this is bloomberg markets balance of power. i'm kevin cirilli in washington. shery: i'm shery ahn in new york. kevin: congress has sidestepped the budget with an interim spending measure. republican leaders are adamant they can forge a compromise. chance we are any going to shut the government down. we are in discussions not only on a cap deal but also the way forward on appropriations and there are some other year and items that we need to address. need notcan people worry that there's going to be any kind of government shutdown. the democrats don't want to do it and we don't either. kevin: here is ohio republican comes with an house freedom caucus member warren davidson with us from capitol hill. we will get to the budget.
speakerl reporting that ryan wants to resign after the midterms. who do you want to see replace speaker ryan? >> it's way too early to speculate on that. there's always gossip on capitol hill. so we will see. get to the budget. is there going to be a government shutdown? are you going to get some type of deal? we just saw the back-and-forth between steny hoyer and later mccarthy on the house floor. it looks like there's a lot of tension over there. >> there is. between the house floor and the senate floor there's the same thing. we are running into this resistance movement and democrats have on core issues not cooperated very well. on a handful it has been really bipartisan and that doesn't get reported as often. i was encouraged to hear senator mcconnell express the optimism that there's not going to be a government shutdown because the house has taken action. we passed all of our appropriations bills back in september. we are waiting on the senate.
we have essentially negotiated against ourselves as the senate says no thanks to offer after offer from the house. i anticipate that means the senate will finally be sending over something. congressman charlie dent of pennsylvania mentioned wouldn't that simply be the senate stripping out the defense bill and sending it back as a clean stopgap measure and keep the government-funded? the senate be what does but so far they have done nothing. this would be our third offer. to have a negotiation you have to have a counter offer. if you think about something where you are bidding on an object or a contract or something and you say what about this price? no. what about this price? no. we need the senate to engage and say what they are actually for. and if this is what finally get them to do that that would be progress.
kevin: you are a small business guy. businesses in your past. the democrats are saying the tax plan is only going to help rich people. what's your response to that? >> i would say it's going to help everyone that i can think of. we have run model after model and every income level benefits from this tax reform. someone in a family, household, married couple. effectively that is saying your first $24,000 of income the tax rate on that is zero dollars. and it goes from there. there were some things in the house bill or in the senate bill. that's why we are going to conference. i look forward to seeing the final product. from what we are hearing the framework stays true. i think the conference report is going to sustain that. senator elizabeth warren, bernie sanders, they are
throwing the entire democratic machine that this is not going to help middle-class -- what's going to change? how can republicans make this argument? case toou take this middle-class americans saying this is going to help you? >> for one, tax receipts to the federal government is only increased when the economy is growing. no matter what the tax rate is. tax receipts to the federal government can go down when the economy isn't growing. under the previous administration there were even economists making the argument, the days of 3% growth are long gone. wages for everyone have stagnated. people have been working hard but they are not seeing their take-home pay go up. linda's take-home pay go up? -- when does take-home pay go up? when we have a growing economy.
this is going to grow our economy. kevin: we are going to have to leave it there. thank you to warren davidson of ohio. always welcome. remarkable to see president trump and fed chair yellen's back-and-forth yesterday as well. let me bring in this new headline from the washington post. senator marco rubio of florida said to be a no on the --ublican tax plan unless during the vote marco rubio ended up voting yes without the expanded credit. we were asking ourselves what would happen. will he change his mind again. right now the washington post reported that rubio is a no unless the tax credit is expanded. kevin: he has worked a lot with a ivanka trump on that. this is interesting as they tried up its this to
middle-class voters. this is a key issue from the sources i've talked about. have: it seems they brought down the top individual rate. pitching it to the middle class might be challenging. time for our stock of the hour. trading lower today are the shares of hospital company community health. this means the stock is now down more than 25% in 2017. abigail doolittle here to talk about why the stock is having its worst day in more than a month. julie: it's pretty amazing. these shares are down sharply. potential tax reform could be negative for this company on a stock that is already down 28% year to date. you have really been trying to stage a turnaround. analyst gary taylor cut his rate to an underweight. noting this company is highly leveraged about seven times.
it is really pretty high. this is the debt distribution community health. in 2022 these bonds are trading at $.58 on the dollar. not something that any investor wants to see. all of this is high-yield debt so it's going to be dependent on the high-yield markets as to whether or not they can get more credit. cash tol need a lot of mature these bonds of course and interest on the stock -- it's a more interesting way to go over the stock especially with all of the turnaround skepticism is company is facing. shery: abigail doolittle, thank you. we will have an exclusive interview with jay simmons. we will get his thoughts on how the tax overhaul plan would impact manufacturers. we will have an exclusive interview with jaythis is bloom.
kevin: u.s. manufacturers are striking an optimistic note in the latest survey from the national association of manufacturers. high ast hit a 20 year ceos anticipate the prospect of tax reform. joining us exclusively to talk jay about the survey is timmons, ceo of the national association of manufacturers. let's talk about this survey and what it means if for some reason tax reform doesn't get done next week. >> it's not good news. manufacturers are very bullish right now on the future of tax reform, regulatory reform and a lot of the other things we thateeing from washington policymakers actually understand that it's important to grow the economy and invest in the united states.
kevin: we have talked for months about how optimistic folks in the market are. i was just in alabama. ane are saying it was anomaly. some are saying it was the start of something new. now the republicans have a razor thin majority. when you look at next year, egmmunity bankers want r relief. how difficult is it going to be with the new majority being this slim? >> i don't care who i talked to. i want to see manufacturers and manufacturing workers succeed. there can be degrees on that. if you look at some of the more conservative members of the democratic caucus -- joe donnelly, joe manchin. heidi heitkamp in north dakota who is a great champion. i think she has 95% support for manufacturing. i think the new senator from alabama, doug jones. i have talked to him a couple of times.
he really does care about the things that will make us competitive in this country and so we are going to be working with him and with anybody who manufacturingsure is strong. that's why 95% of manufacturers have an optimistic outlook. kevin: are you guys optimistic about tax reform? >> is it perfect? no. do we have all the details? no. we learned we might want to take a look at the fine print before you make too many statements. better's a heck of a lot than we were. saidthe house and senate 20% we thought we would see 20%. we thought there would be better treatment for corporations. there can be no disagreement that this is much better for businesses. kevin: very quickly. the democrats are saying this is only going to help rich people.
here is what our manufacturers say. two thirds of them say they will get a tax rebate to invest in more plant and equipment. we are going to hold them to hiring people. thank you for coming to talk to bloomberg. coming up on bloomberg technology, we will continue our coverage of the effort to repeal net neutrality when current fcc comessioner brendan carr on. and a quick reminder. you can catch all our interviews on the bloomberg with the function tv . this is bloomberg. ♪
scarlet: breaking news. central banks are just moments away from the release of the bank of mexico's interest rate decision. it is expected to raise rates. let's go to julie hyman. julie: as we await the news coming out in just a moment we expect to see the mexican central bank raised the overnight rate to 7.2 5%. that is a 25 basis point increase and it was indeed what economists were expecting. bloomberg23 folks surveyed did expect the increase. we have seen this increase and i am now seeing the headline that mexico policymakers were split in this great decision. fore are currently only governors in the central bank of mexico.