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. >> i didn't hear you mention gary cohn at all. >> gary cohn -- i have very obtuse and abstract conversations with people. gary cohn's name doesn't come up when i raise, it i don't get a lot of response back he's still in the running. we haven't taken him off of our list here, but -- but his name is not all that high out there. >> could still be in it. >> it's a conversation for another day but if gary cohn doesn't get the job, is gary cohn out the door and what are the potential impact to the way people think about him and his role in the administration after that >> and if they are playing hock he, got to ricochet that back on the idea do we get the tax cuts if gary cohn leaves before. >> all interesting. >> we're waiting, by the way, for two key senators on the intelligence committee to update us on the russia investigation that is just ahead we will take you to capitol hill live, and one analyst call on three video game stocks, all three have soared within the last year. we're talking take 2, ea and act vision blizzard. it's our call of theay d "halftime report" is back in just two minute

you can take it through to gary cohn. rick: the exact same thing happened, and a lot of economists forecast this number. that is the diff you saw in katrina. we are going to get it back next month or the month after. markets are rightly assuming, do not worry about -33,000. alix: the rates, we bring up mipr, the probability of rate hikes. this is today versus yesterday. the green line is today. the yellow line is yesterday. we have seen a quick rewriting in the last 24 hours. a move of seven basis points. there is a couple things to factor in. you have a dynamic today where -- thisis laid out year, the fed has done a brilliant job of communicating with their trajectory is going to be. the front end of the curve can follow the fed very closely. the backend, particularly if you get wage acceleration -- we talk a lot about technologies keeping inflation down. at the margin, it is accelerating a bit. the front end of the curve could have pressure on it. does the curve flattened a tremendous amount over the last couple of year

charlie gasparino has been saying that it would not be gary cohn. charlie, what are you hearing now? >> well, this is interesting, because i've been saying for months now, following the charlotte -- remember gary cohn famously came out and backhandedly criticized the president over remarks during the charlottesville neo-nazi rally. he came out and said stuff that the president was seething about, that seemed to suggest that president trump didn't strongly protest that rally enough. and since then, essentially out of running. it's semi official. what's interesting here is this, liz, is that we've been reporting also that kevin warsh, in my view, was a very likely choice, for a lot of reasons, including the fact that he's been around government for a long time. been a loyal republican. some economic policy, not in the congress but economic policy experience with the bush administration. he is the son-in-law of one of donald trump's best friends. longtime new york republican activist, i guess you could say, and billionaire, like trump himself. journal

gary cohn: you've seen our blueprints, our plan. our plan does not allow for deductions of state and local taxes. we set out to achieve a couple main goals. number one, lower rates for everyone. number two, simple indication. we were trying to get rid of the loopholes and deductions that mostly wealthy people use. tracy: that was gary cohn speaking to bloomberg. markets have fallen all over themselves, to get excited about a potential u.s. tax reform package. if you think the trump trade was at its basic level about an upward move in u.s. bond yields, a stronger u.s. dollar, and rally in u.s. stocks, take a look at this chart. you can see that trump trade has returned! a sharp move in the benchmark u.s. 10 year yields there. i will admit, stocks never really took a hit over the past few months, but we have seen another rotation into companies that are most exposed to the u.s. tax rate. you can see quite clearly, about are getting excited that old trump reflation trade yet again. whether it will continue into , that'sth quarter, a wh

then there is gary cohn, the head of the president's economic - he gary cohn, the head of the president's economic- he was president's economic council. he was considered the favourite, but their relationship went south, after he disagreed with the president's response to the violence in charlottesville. response to the violence in cha rlottesville. so response to the violence in charlottesville. so who is left? john taylor. he is a stanford economist and always on the republican list of potential fages. but never gets thejob. republican list of potential fages. but never gets the job. —— republican list of potential fages. but never gets thejob. —— fed chairs. he is a poor clippings that interest rate should be lowered despite inflation. next isjerome powell, a member of the federal board, and has expressed on the —— and has its roots in the private sector. and then there is kevin warsh. he has been on the fed bought for more than a decade, so knows the gig- for more than a decade, so knows the gig. but he may want interest rates go. and he was warned about inflation. whoever

you said if it is not gary cohn, it will be risk off, because it will be a gary cohn-less administration. if it is kevin warsh, and the boxee takes is deregulation -- the regulars in, is that a positive for the bank s? ian: yes, but it is not good for the s&p 500. david: but isn't deregulation going to get done? to what degree. have we seen a repeal of dodd-frank? no. but it seems everyone is on board to fix things for regional banks. david: ian winer, thank you. if you have a bloomberg terminal, check out tv . watch us online, check out our charts and graphics, and interact with us. live from new york, this is bloomberg. ♪ david: breaking news. this is prepared testimony that the equifax ceo will deliver before congress tomorrow. he reports that they told the fbi they had a problem with a security breach as early as wasst 22nd, and the board also notified. thateo of equifax saying they let the fbi and its board know early on. after remarks last week anerally taken towards december rate hike, janet yellen will speak on community banking in the 21st century. joining us now is michae

jonathan: why would you really want gary cohn? why would he be so good? bob: i think it is time to get a markets practitioner into the fed seat and balance the econometric models of the ivory towers with the real world we all have to deal with. jonathan: i don't think i have ever heard anyone talk about gary cohn becoming the fed chair weeks.eks -- for bob: i thought i would serve him in when you gave me the airtime. jonathan: marilyn, as you sit around with the guys of blackrock anticipating the decision that could come any day now, how you approach a decision like this? have you as all? marilyn: you have to look at the probability. we are looking at what the market is pricing in. but as you mentioned when you , look it all the different candidates, a lot is known about several of them. i think potentially, when you look at taylor, for example, and how hot she is going to be, i think that is sort of being overplayed. he is going to be, i think that is sort of being overplayed. when you look at the list of candidates, some on the more hawkish side, but ac

cohn >> right he and i do not see eye to eye and all that gary cohn may not be great in front of a camera. he's great in the boardroom. >> did you see the yield curve today? smallest in about a decade >> we're at almost nine-year highs on the two-year note any chart with nine-year highs is something you should take a look at. ultimately it's telling you the fed is one or two rate hikes from pushing us over the edge. i don't think that's the case. but the bond market is usually smarter. at some point you get a 2% two-year note, that's going to suck money out of the equity market >> one trader just made a more than $4 billion bet against this group. >> in the xlf, that's the s&p financial select etf, when the stock was trading at 2016, there was a buyer of 146,000 of the january 2018, 25, 22 put spread, about $4 million in premium, breaks even down about 5.5% from the trading price with a max potential gain of $2.70, down 22 bucks. if the stock was down there, that's down 15.5%, that trader could make up to $39.5 million we have a chart, the way i see it is that september low in the xlf was

familiar to people the matter, gary cohn is not open to the fed. mindel holly faye was speaking asked lucidly to bloomberg. >> i have a meeting with two banks. they will come and apply for licenses to operate in saudi arabia. we're open. the u.s. house has in responseanctions to iran's support for hezbollah. the two bills market first action against iran since president trump refused to continue the compliance over the nuclear pact. china has begun marketing its first sovereign dollar bond. since 2004. according to people familiar, the offer is $1 billion. the same amount of 10 year debt we offered at a premium of 4250 basis points. to european union has agreed start internal propositions -- preparations in case the brexit of progress. they are worried the end of the year. preparations will begin at the same time in case of a more positive outcome. critical 48 for a hours. kelly's efforts -- catalonia's to push for independence are coming. in madrid, this medicine and started today vote on the implementation of article 155. the turkish there only l

looks like gary cohn is out? kathleen: it is interesting how the fortunes of the potential who is going to be the next fed chair have risen and fallen. gary cohn, former president of goldman sachs, brought in by donald trump to be the head of the national economic council, quite a big role in tax reform, he is out. white house officials telling bloomberg trump has nixed him, he does not have a shot. he said nice things, wants to on the. cohen -- cohn economic council. but they had doubted his ability to lead the fed. white house officials also telling bloomberg there is no decision yet. let's also point out gary cohn spoke out against the violence in charlottesville, how the president responded. a lot of people think that is what some can. who is left on the list? he is on theowell, board of governors now. we have john taylor from stanford university. and of course, janet yellen herself. kevin warsh, i doubt for some. in part says he has a long running feud with someone appointed by trump as the fed board governo

methe surprises, when i with gary cohn, that the market did not rally. he said there may be some others. jon: he is not going to tell us what they said. >> when you have volatility really low, you can argue that any low volatility asset can be treated -- it is not anywhere near the stability. i can understand why somebody would make the comment. every day, the market seems to be moving ahead by not big numbers, but five basis points, 10 basis points. that is not because something crazy is happening. the ball is low and you get the slow grind. it is not a money fund, that i can see why people make those comments. jon: is that going to change with the next fed chair? jonathan: the reason the low volatility is around is because in some way the fed is supporting the stock market, and i do not believe that is the case. they are very accommodative, but you have an economy that looks terrific. recessionary risks are super low. that thisbout morning. when those risks are low, it is not only good for stock returns, but its use volatility very tight. jon: that mon

anybody but gary cohn. anybody but janet yellen. let's look at the other three. trish: good to see you both. thanks so much, steve, ned. i love chicago. you have a great town. >> thank you. trish: breaking news everyone on disgraced media mogul harvey weinstein, all ties are cut from the company that bears his name. we have all the details coming up. do not go away. i will see you right back here after this. ♪ you may be at increased risk for pneumococcal pneumonia, that can take you out of the game for weeks, even if you're healthy. pneumococcal pneumonia is a potentially serious bacterial lung disease that in severe cases can lead to hospitalization. it may hit quickly, without warning, causing you to miss out on the things you enjoy most. prevnar 13® is not a treatment for pneumococcal pneumonia... it's a vaccine you can get to help protect against it. prevnar 13® is approved for adults to help prevent infections from 13 strains of the bacteria that cause pneumococcal pneumonia. you should not receive prevnar 13® if you have had a severe allergic reaction

you know, no one has really sat down with gary cohn and said this. what is your objective in cutting taxes? do you want to grow the economy? yes or no. is that why you think taxes should be cut? if you want to grow the economy, someone has to tell him, gary, if you want to grow the economy, don't you have to cut taxes for people that pay most of the taxes? it is simple logic. neil: they're going through hoops on this. ronald reagan said, i believe in tax cuts for everybody. having said that seems like they're cowed, a little bit republicans in general, they don't want to be painted as party of the monopoly. i see your point. but they're doing this to win potentially democratic votes, that i don't think have a high chance of materializing anyway. >> they are counting as people, republicans who in senate, particularly not going to vote for this as mccain, at least rand paul -- neil: i think those are two guaranteed no votes. susan collins is hanging by the vine. >> murkowski. they are hoping to get some democrats. neil: manchin says no at this point in

joining us now, gary cohn, national economic council director. so welcome back to the show. always good to see you, gary. >> great to be here, stuart, thanks for having me. stuart: have i got it right, tax holiday, one-time low tax rate just on money already overseas? what kind of tax rate are we talking about? >> stuart, you just played the clip from the president's speech in harrisburg yesterday where we delivered that. look, where we transition from a worldwide system to territorial system we have to catch up for the money that hasn't been brought back. so what the president was talking about last night, which is something very important, a catch-up for money still offshore. so the president is going to force companies to bring that money back to the united states so it can be spent and invested in the united states. that is very important to our tax plan. stuart: absolutely it is. because you're talking about a very short window, and a very, very low tax rate. what would that tax rate be, 5%, 10%, or zero percent? >> as you know, we have given tax writers a lot of latitu

he has ruled out appointing gary cohn to leave the share. of being thehance fed chair according to someone present for the remarks. this is something people have speculated on for a couple of weeks. take does not see my that of a surprise. cohn, it has been quite some time. scarlet: let's bring in kevin, our chief washington correspondent who broke the story. on cohnmore context being out. the relationship had been freed remarkse president's about what happened in charlottesville. kevin: president trump does not plan to according to federal -- several sources. this comes after a relationship has become a bit more tense in the past several months. networkbusiness limitedw that she had his decision on who would go on the board to two or three choices. we have carefully monitored the situation and it looks like someone like powell or john taylor, and even janet yellen, the current fed chair, still in the running. >> is there a sense of who is the front runner among the group you just named? to thinkgood reason each could receive a nomination bu

we are here in she is said to be there for a meeting with gary cohn. these are the latest in regular meetings they hold. investors are concerned about what is happening with janet yellen's candidacy for the fed chair post. she met with president trump yesterday. we are seeing the markets continuing on this upward trend. a record high again. treasury yields are up. the dollar is up. optimism on tax reform. an announcement about the next fed chair anytime now. financials and tech are leading the gains on the s&p 500, which is up for tens of 1%. the nasdaq is rebounding from yesterday's losses, up .5%. vonnie: we are learning the fed chair janet yellen is back at the white house for a meeting with gary cohn. it is a semi-regularly scheduled meeting. we want to turn to washington, d.c. and have a look at what is been the priority this week for the trump administration. a little excited only heard janet yellen was back at the white house. turns out it was a regularly scheduled meeting. doesn't mean you won't slip in some questions about what you might do if

gary cohn wants to be head. everybody else wants something else, they're not happy with what they've got. people who are billionaires aren't happy being billionaires. >> now you're talking about adrenaline addiction. >> addiction to power and nothing ever being enough. when is it time for things to be enough. >> is there anything that rex tillerson can do within the administration to recover from this? just a week ago president trump fires tom price. the laundry list of people in this administration who have had to leave. every day we're going let me tell you about the amount of flights steve mnuchin took. i mean if trump keeps firing people -- >> why would he want to recover from this. his own president under cuts him when he's trying to go on a diplomatic mission to china. >> sara huckabee sanders says it's imsable for the cabinet to be undercut by the president. he sets the rules for everything. >> we've got to take a step back and look at what's happened from the second the president took office. it's sendin

gary cohn, walsh, powell are the contenders. and imagine this, this is the betting -- anna mentioned this at the beginning, is is the betting. '-- warsh was the contender, would that be contrary to what trump wants. note -- i know what people are looking at him as the front runner. is what wouldon he do differently to anyone else not go he has seen -- he is seen as a hawk. he is worried about inflation. if you look at most those comments, they have moved away from zero which they already have. they started the drawdown on the balance sheet. now in today's condition that he is a hawkish person. we don't know. the president has made it very clear that he wants low interest rates as much as possible. i think most people are going to take that. : let's throw another voice into the conversation. how gary cohn is in the running in this list of seven contenders. jeffrey has been giving his thoughts. >> one of the things that people see and was saying is gary cohn, the number two guy from: sex would be the fed just from goldman sachs wo

i think gary cohn shouldn't be in the white house. he should have resigned over his public break at charlottesville. i do not want to see gary cohn or do not want to see janet yellen. trish: don't want to see yellen even though you get dow 23-k. first woman fed chief in a trump administration. >> we've had enough of yellen. i like john taylor. let's see where that goes. a little bit of change at federal reserve. let's go with something new. trish: let's, make sure we cover fiscal monetary policy here. let me ask you, ned, we have a budget passed. that is big deal. market likes it. >> that's right. trish: they're hopeful this means we got tax cuts. who are republicans we should be watching most carefully? who might be in the way besides rand paul of any potential tax cuts? >> you to look at john mccain. he already made rumblings not potentially being behind some of the tax reform. you have to look at susan collins and lisa murkowski because they have been so problematic as well. my concern, trish, as you look at the congressional calen

mark: gary cohn, national council director earlier today on bloomberg daybreak: americas. , thiss. economy in focus is bloomberg. ♪ mark: time from the global battle of the charts, where we take a look at some of the most telling charts of the day and what they mean. vonnie, even to those charts on the bloomberg by running the function feature at the monitor your screen. kicking things off today, alex harris. while we looking for today is not want take you back a week to the end of the quarter with the u.s. dollar funding market. something adjusting a starting to build. even though the debt ceiling has been resolved and we have a short-term suspension through december 8, the money market funds still don't like treasuries. what usually see in purple is the spikes and the backup in the repo rates as money market funds all caps out of the market to buff up their balance sheets. we weren't seeing that this time around and there was a bit of a damper on that risk. we stayed within the fed 1.5% target range. like nails, supplies is not coming as fast and furious as everyone thought wit

you got an exclusive from gary cohn just a few moments ago. it's quite an interesting story you have to tell. another reporter and i hanging out on a driveway outside of the white house, there gary cohn. we were going to wait for him. he didn't really feel like talking. theid ask him about bloomberg report that the president himself is really concerned about that provision thate tax reform plan would affect the deductions on state and local taxes. cohn is the president rethinking provisions, and he said no. he said no a couple of times very quickly -- clearly. did he mean is the present thinking about scrapping that entirely? open theving possibility that president might be open to some sort of compromise of $400,000 threshold or something like that? because he wouldn't stay and chat. we certainly hope to be able to ask him the president and the entire white house about some of these details as the talks move forward. it's fascinating. the president talked to a bunch of truckers about this tax plan and then reporting that the president was sur

we'll talk live with gary cohn. he is in the middle of all of this. what happens to your money, top of the hour. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends, three jobs... you're like nothing can replace brad. then liberty mutual calls... and you break into your happy dance. if you sign up for better car replacement™, we'll pay for a car that's a model year newer with 15,000 fewer miles than your old one. liberty stands with you™. liberty mutual insurance. backed me up... big time. before movantik, i tried to treat it myself. no go. but i didn't back down. i talked to my doctor. she said: one, movantik was specifically designed for opioid-induced constipation... oic. number two? my movantik savings card can save me big time over the other things i tried. don't take movantik if you have or had a bowel blockage. serious side effects include opioid withdrawal, severe stomach pain, severe diarrhea, and stomach or intestinal tears. tell your doctor about side effects and medi

cohn. you've got warsh, powell, taylor who would fit the bill, who would be best for stocks >> it's no shot, it's warsh, i'll get it before he will, he's a pretty vocal hawk. the president talks about liked low interest rates now when he was candidate trump, it was a whole different story. >> of all the reversals, he was so critical of the fed, he was so critical of the approach to the fed. if anything, this is all about having continuity. >> there's a difference between r a candidate -- >> because taylor would be -- >> taylor is a regimented guy, may be a good thing, but not the guy -- >> doesn't matter. >> you saw the market react when powell was rumored to be announced. the market spiked up immediately. the market would welcome it. it has to be powell. >> it doesn't have to be anybody. the market will care for seven minutes. anybody who is on that list knows that he wants low interest rates. he's telegraphed it. the world knows, they know i don't care how hawkish they are right now or th

sayse line co-founder there is no chance gary cohn and will be the next fed chairman. there is no way donald trump will allow janet yellen to stay on for next year. he says minneapolis president will be handed the job, he has been critical this year. coming up later today on bloomberg surveillance, the conversation with vice chairman stanley fischer before his departure from the role. kong time.0 hong global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. yvonne: thank you. time to see how the asian markets are shaping up so far. >> looking at what is happening in the markets today, there is a little bit of a mixed bag. not really taking a fully positive cues from what happened with the record across all the major indices across the united states. the nikkei.with the nikkei is up by one third of 1%. 200 notsee the asx feeling any of the flow from tuesday trading in the u.s. we will call that flat right now. let's see what is happening in terms of japanese trading. we can see that the

gary cohn was asked about that at a white house briefing and was asked, well, if the money goes back to shareholders and buybacks and that sort of thing and dividends, is that okay with you? and he said, yeah, that's fine because those people will then put the money back into the economy. that is a trickle down argument. >> doesn't always work. >> some people believe that, but that's not exactly what history shows us. the track record for that is not great. >> john, good to see you as always. thanks for the discussion. cnbc's john harwood. >>> stand by, everybody. president trump's ethics chief says he is, quote, deeply concerned about the government's leaders. we're going to break that down for you next. you're watching "velshi & rhule" on msnbc. when a fire is going on, you're not thinking clearly, so they called the fire department for us. i could hear crackling in the walls. my mind went totally blank. all i remember saying was, "my boyfriend's beating me" and she took it from there. and all of this occurred in four minutes or less. i am grateful we all made it out safely. people

how is that going down with gary cohn? white house point man whose job is to get tax package through the republican congress. we should ask him and here he is. now you have to negotiate around the death tax, is that where you are? >> hey, stuart, good morning and thanks for having me on today. look, as you know, we turn in a outline to tax writers both house and senate and we have given them a lot of latitude to work with broad outline on delivering middle-income tax cuts and that's really important to us and to deliver a business tax cut that makes america competitive. those are two areas where we are really concerned right now and we are spending enormous amount of time. stuart: does keeping the estate tax fall in line with making it a middle-tax cut? >> as you know, the estate tax really is important to small and medium-size businesses and family-owned businesses, they are the ones that really take advantage of the estate tax. we want small businesses to grow, we want them to keep hiring people and we want them to get l

his name is gary cohn. he is the point man in the white house, sits right next to the president in the white house. we'll be back with gary cohn after this. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. hi, i'm the internet! you knoarmless bowling.lt? you got this, jimmy! you know what's easy? building your website with godaddy. pick a domain name. choose a design. you can build a website in under an hour. now that's a strike! get your domain today and get a free trial of gocentral. build a better website in under an hour. i love you. ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban maho

>> yes, it was mnuchin and gary cohn. liz: beyond that, my point is the power lies with the voters, with the representatives. >> right. here's the thing, there's two, there's two ways of looking at this. you know, congress is putting together this plan, but they're doing it in concert with mnuchin and gary cohn. so they made their peace. they were unimpressed by the response which was we'll talk to you later. as you know, kevin brady came out today and said the house -- the deduction will not be in the plan that's unveiled, i guess, tomorrow. who knows what's going to happen in the future. so here's what we got from the congressional delegation from new york, is that they are still -- that's nine members -- still not sold on the tax reform efforts. they are worried, obviously, over the s.a.l.t. deduction, and what we understand is there is a growing consensus among those nine members to oppose the tax plan, to vote against it. the question is, is this total buy cot from new york enough to kill -- boycott from new york eno

so those five being janet yellen, gary cohn, and john taylor. we've been giving you these five names for the better portion of a week now. but maria bartiromo earlier this morning here at the white house sitting down with the president asked him about this, and it appeared, liz, maybe he is down at this point to two, possibly even three of the five. here was his answer to maria this morning when maria asked him who he wants leading the federal reserve. >> well, as you know i've been seeing a number of people. and most people are saying it's down to two. mr. taylor, mr. powell. i also met with janet yellen, who i like a lot. i really like her a lot, so i have three people that i'm looking at, and there are a couple of others. i will say i will make my decision shortly. pretty shortly. >> the president there not mentioning his top economic adviser gary cohn also not mentioning kevin. however, also mentioning janet yellen. that is a remarkable 180-degree turn from the campaign trail in which he claimed that yellen was at points too political. shoul

-- gary cohn among the small people being considered. this might telegraph, the president is interested in reappointing janet yellen or -- no way of knowing. it seemed to indicate the list is down to three individuals, whether two of the three -- people read into all sorts of things. the fact she is having lunch with gary cohn, people start pointing all sorts of possibilities, more after this. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. when you're close to the people you love, does psoriasis ever get in the way of a touching moment? if you have moderate to severe psoriasis, you can embrace the chance of completely clear skin with taltz. taltz is proven to give you a chance at completely

that according to a senior administration official in terms of gary cohn and whether or not he would get that job. couple other points that the official made, the president has not made a decision yet on who he wants as fed chair. the president would like to announce that this decision before he leaves for a trip to asia on november 3rd, but there's no guarantee that the president will necessarily make that announcement before november 3rd there's been a lot of expectation that we're definitely getting is before then this official saying that the president could wait until he returns saying the president i thinking intently about that he knows the value and the importance of this job in terms of global markets and the u.s. stock market which is something the president talks about very frequently and also, the president has not called anybody back for second interviews yet any of the five candidates that's something they won't rule out here at the white house as the president continues to think about this job they're saying here gary cohn has not been ruled out but also saying he's cr

gary cohn will be meeting with them. president trump is still anticipating him to be on capitol hill as well. it's all about tax reform. vonnie: health care goes away. the fed chair nomination might come at some point as well? kevin: we are carefully tracking all of the latest developments on the fed chair race. it looks like president trump might opt to have some type of mixed pick, where he could have a combination of john taylor and, potentially, someone like a kevin warsh or a j powell. it will be interesting to see what goes on there. of the five names we have been reporting on, in addition to janet yellen and gary cohn, all would likely be advanced out of the senate banking committee, which has jurisdiction over this and likely face approval from the senate. vonnie: thank you, kevin cirilli. coming up, general alexis -- electrics' post earnings slump. analyst downgrades after friday's report. we will discuss. this is bloomberg. ♪ from london and new york, i'm mark barton. vonnie: and i'm vonnie quinn. this is the

now they are worried and has een worried that gary cohn had a number of republicans with a number of districts and proposed two solutions, the solutions they proposed are half baked and won't work. one, you get a choice of the mortgage deduction or the state and local deduction. if you choose, your taxes are going to go up, because if you don't itemize, you are using both. what kind of choice is that? and furthermore, they are saying choose between getting rid of the mortgage and state and local deduction. left or right? that is a great solution. but the second one is they say this goes to rich people. apital gains, lowering the top rate, excise tax, those affect rich people. rich people don't have that much income in property. they have it in liquid assets. solisen to this. let's say they limited to it with incomes to people with under $200,000 a year. that is 50% of the value. there are huge numbers of people who make between $50,000 and 2 50,000. they aren't going to say if you make $175,000 you have to pay this. that is their base swinsy. so to actually have an effect to prevent

gary cohn is still in the running, and apparently trump is interviewing more candidates this week. it is a beauty contest, the pageant, the race is heating up. betty: and for current monetary policy, how will the fed react? kathleen: the key gauge weekend -- weakened again. the pce is at its lowest now. look at this chart. here is the main number, the headline, 1.4, but now down to 1.3. this is so far away, further away from the target. we know the fed has janet yellen, officials signaling they could rate -- go up in december. bloomberg saying that the risk as this inflation skid deepens, let's look at another bloomberg function, wirp. the numbers cast down, but look at this. if you see chances of a rate hike, they are around 70%. this has not changed the markets' mind yet, but transitory inflation could be getting more permanent. paul: let's tend to asia now. surprising move on the pboc as we look at economic reports that the bank of japan, was closed as well. the pboc may not be a surprise because of the state government counsel that urged the pboc to boost lending, and like smal

cohn and by the president himself who says he's going to just cut taxes on the middle class, not on the wealthy. this process will be going on for awhile. there's going to be a very bright light shining on our republican colleagues in the house and senate. it's going to take them awhile to come up with a bill. it's not easy writing a massive tax bill. and all the while, while they're writing it, and certainly once it comes out, that bright line of truth will produce, in my judgment, the same result we had on health care. the more the american people see, the less they'll like it. right now cbs poll yesterday, two days, sunday, said 58% of the american people believe that the trump bill is tax cuts for the wealthy. only 19% believe it's nor -- for the middle class. that number is going to get worse, my colleagues, just as the health care thing got worse. and the american people turn against you as we democrats shine the bright line on what it really did. you cannot govern from the hard right, as wealthy as they are, as much as they threaten you with primaries. it's not going to work.

among the top names include powell, and, jerome gary cohn. one name not on the list is the head of the minneapolis fed. still with us is dan fuss. from where you sit is a bond investor, which candidate would be the best to carry out the president's agenda of tax cuts? differentght be two people there. market viewpoints all other things aside, probably janet yellen. paul would be next in line. whother words, centrists would have sway with the others involved because it is a very political job and it is a very tough job. the other candidates mentioned inng certain things to it terms of experience with the fed. gary i think would definitely -- i am a fan of his. he is not an economist, so maybe the economists wouldn't be happy. he is a highly skilled, very experienced person. would he take the job is another matter? i don't know. i am glad you up that it is a very political job view, wen bloomberg wrote that it is a very political job as well. to assert political independence and assume responsibility for asset bubbles and respond to a worldly f

erik: whether it's gary cohn or kevin wars? larry: i say they will be more moderate than i would think historically the candidate from a republican president would be. mind you that ben bernanke was selected by a republican and he turned out to be i would say fiscally prudent, but he was also very aggressive in terms of problems. erik: how what i interpret what you say? do not think the fed is going to be too much different regardless? larry: exactly, you said it. i actually believe a successful fed is a federal reserve that we don't have to talk about that often. the fed obviously played a major 2009-2011-2011,8- but if we cap a normalized back to a go normalized economy, we will not have to worry about the federal reserve much. i think the federal reserve played a significant role in stabilizing our economy, but if we have a normalized economy, i think the debate and conversation about what the fed is going to do is less important. it will be much more important about how are we driving innovation, how are we driving jobs in

liz: the white house undercutting gary cohn. stuart: looks like it. uranium deal involving hillary clinton, big news there. the defense department has lifted gag order, that informant can now speak to congress directly. joining us congressman ron desantis. congressman, could you establish for us the significance of this gag order being lifted? >> well, i think it's huge, stuart, this individual was recruit today help lobby for russian interests in 2009. he realized very shortly that this was not enough and he immediately went to the fbi and they made him a confidential informant back in 2009 and that was a year and a half before the uranium one deal was actually approved by the obama administration. stuart: he's in a position to speak directly of who did what, which clinton did what with which russian and which uranium company? he knows firsthand what went on, right? >> i think he knows firsthand what the underbrush that was leading to facilitating this deal. he's going to say that the russians were concern with favorite with the clintons. we have to

gary cohn has gone way down and janet yellen is right the side him at almost zero. it looks like kevin warsh is the most likely contender. yelena: when you hear about it in the news, some names are floated and it increases the chances when somebody is mentioned in the news. i would say that the preference for low interest rates actually disqualifies some of those ,andidates such as kevin warsh because his preference, and he has been talking a lot about financial stability. i natural stability concerns would almost automatically mean higher interest rates, and this is not something president trump achievet if he wants to surface end growth in gdp. vonnie: stf financial came out with a note that said only fed governor powell has a -- tradable. is that true? yelena: i think he is next on the list after chair yellen. if she is disqualified because of her opposition to deregulation, which she clearly stated at jackson hole, i think jerome powell has probably the most qualifications to get the job. shery: how about pushback from republicans? conventional republicans like

you have kevin on that list, along with gary cohn and jay palette. my question to you is, who do you think the president is consulting with when it comes to thinking about the next fed chair? he likes to crowd source and share his ideas and gather ideas. directtalks to has a influence on how he thinks about who he should put in that place. >> we do not have a guess on who he is discussing this with. it is very important to markets. this is the number one issue in all my meetings. i was in asia three weeks ago. it is incredibly difficult to come up with a guess on who it will be. -- therehe candidates is continuity with where the fed is at the moment. it is among different dimensions. the bottom line is, do you think there will be someone representing the current idea where they are going? or do you think it will be someone where we do not know what exactly they are going to do? scarlet: if it is someone like steve mnuchin, what kind of candidate would a steve mnuchin support? >> i cannot guess what he would say. but given his background on the street

gary cohn is a definitely a democrat. neil: a lot is watered down. >> my faith is not in those guys. my faith is donald trump steps in that says you have to do something bold but doesn't look like it is going that way on individual side. >> good news, we're evolving into something smarter. i did not like the border adjustment tangs. >> that was statists thing. neil: 1.5 trillion for tax revenues lost and cost of this thing. neil: you know numbers better than i is five trillion, they haven't found growth to pay for extra trillion out of that, where do they come up with the other 2 1/2 trillion? >> i know gary cohn and steve mnuchin, worked them for years, they are believers in growth. they to not worship at the altar of cbo. neil: they do not worship at the altar of supply-siders. >> a state and local taxes and couple of sacred cows -- >> i would just say this, gary cohn is a liberal, okay? if you're trying to say that a lib room is going to push through the greatest supply side cut ever, i mean defies, bog fells -- i just

gary cohn, walsh, janet yellen, is glenneably absent hobart and richard davis. >> i think chair yellen is still better than even odds for the fed chair. she would reflect a continuity of the policy in place that president trump has said he does like her and admires her track record. i would see yellen, powell, and further down the list, maybe warsh, but he might be too hawkish for president trump. dovishuld say there are governors being proposed but what i mean is potential governors who would be dovish on interest rates would pullback qe and get the curve to widen out a little bit, which would be good for markets. and probably the ones that trump, when he starts interviewing these guys, he will go with one who is more anti-regulation. >> the house passed their budget year,tion for the fiscal taking a concrete step to enacting tax reform. it allows the republican tax bill to be passed with a simple majority and reconciliation protecting legislation from a democratic filibuster. how did the budget resolution become the easy part of this legislative process? >> you are absolutely right b

saying today gary cohn the state and local tax reduction is still something the administration is going to use. as a revenue source for their tax plan. several sources familiar with thesituation say that administration is facing intense pressure from republicans on capitol hill who are against that. david: we have heard from the director of the white house domestic policy council. he says this is just beginning and we should expect to see more like this. what more could the president do with the power of the pen when it comes to health care? >> it depends. first and foremost he wants to use the power of the pen as a reformget meaningful passed on health care. as you remember it was just last week when the republicans led by mark walker put forth a budget proposal that ultimately failed because -- setting up the process for tax reform. his version actually would have enabled to reopen debate on health care. that was left out. republicans say they want to repeal and replace obamacare but they have struggled immensely trying to get that done. the closer we get to the end of the calendar ye

that's what gary cohn says the tax reform proposal is designed to do. larry: that happened with a tax reform during the reagan administration. that hasn't happened ever since. it brings growth forward. erik: are you saying the tax reform proposal needs to be budget neutral? larry: no. but it has to be mindful of what we need to do related to our deficit. erik: what would you change? larry: i'm not a tax expert. you are asking me many tax expert questions. i don't believe we are going to get tax reform if there is the elimination of the deductibility of state and local taxes. obviously that creates a bigger deficit. so we will have to find it somewhere else. obviously one of the ways is by raising corporate tax rates from a proposed 20% to something closer to 25% or 27%. that is still a net positive versus what we pay today. i think by and large, most investors and corporations would welcome that. erik: you would be fine with that? larry: we would be fine with that. we pay about a 31% tax rate worldwide. it is fine for us. two, we need to make sure we ar