tv Bloomberg Markets Americas Bloomberg January 25, 2017 10:00am-11:01am EST
♪ big day for u.s. markets. the 20,000rossing mark and president trump over twitter just pulling his quote unquote great. abigail doolittle has more. abigail: doubt 20,000, we have been waiting for quite some time, 64 days since the dow hit 19,000, the second shortest time gap, so we have nice momentum for u.s. stocks. also following through to the s&p 500 and nasdaq with lots of green and simultaneous record highs. 5096 and thisbtv is showing all the times on a quarterly basis we have seen the three major averages hit record highs, represented by the blue lines. he we are once again, so a bit
of a bullish streak. seems the trump trade rally continues. as for his behind what strengthened the dow, visa, ibm and nike. please has been upgraded -- visa has been upgraded, saying they have an attractive business model and nike is up its most in more than one week, so nice strength for these names. finally, not concerned with the risk on picture, when we take a look at the global commodity function, this is called loco. lots of bread. to the great, we would like to see confirmation of the commodity complex with de-risk on in growth to the strength we see in stocks but not quite seen it come interesting that we see the dollar is down mark. abigail, we will take it from here. a look at european markets in the moment, but we want to look at the dow passing 20,003 joining us on the phone from new york is wall street veteran laszlo, founder and president,
thank you. what is the significance to you, this barrio is preached on the dow jones? laszlo: they will sell a lot more newspapers. historically, if somebody would have said days and numbers like this are like crossing state lines with the kids and they get so excited and then they ask, where is the next mcdonald's? i would not consider it an indicator of any real substance or significance. i think the most important and interesting thing about it is the leadership. at this point, you have had the financials from goldman sachs very strong, but today, you have nike is coming out of the dust, so you will see more persistent bashan by significant -- you will see more
participation by significant names, probably as important as number itself. vonnie: the s&p 500 is at a record, as is the nasdaq, so not just the dow. do you continue to buy this market? laszlo: we have been looking for opportunities, so we nibbled more instead of taking big bites. we have already been there. [indiscernible] in some of the stocks in which you are overweight, so we are still per dissipating and hoping -- participating and hoping to find stocks with an upside. vonnie: we spoke right after the break and you said that you will looking forward the markets to continue to go higher by the second half of the year and you anticipated good results from market participants and it was because you said the negativity was overdone. people are looking at the negatives of the economy and reading too much.
but to think of fundamentals these days? economic and stocks? are pickingamentals up, but i think one that is stuck in my cause is the idea of the public anymore optimistic and feeling better, but sales are not going up. it is one thing to have a certain sentiment and another thing to have that sentiment expressed in dollars and cents. we still do not see the public , citing some of these up to mye perhaps chair, but -- has too much air but it has been fundamental news. i would like to see more substance. vonnie: we get something like 28% of the market caps with the s&p 500 reporting earnings this week. what are you looking and hoping
for from corporate america and the forecast? you hit the key point. it is what are they looking for? we have been surprised by earnings. they have generally been on the has beenut this mark the last six years or seven years and then quite well. a lot of great earnings. becausenot hang my hat there are also things like margins, sales, the outlook. we have been rather nicely with new earnings and attitude is what we really will do well on and we have to look at history and look at the relationship is not quite as strong and some people are like you to think so we will go one step at a time rather than jump in a big way. vonnie: the president is chairing this level, sees it as 8000.with the dow at sign
how much is this a trump trade in what way do to deliver in order to keep this going? the is lookingf further than the market does. things like the reconstruction and some issues that will take years. i think the key thing is not to drop the ball. greatrket is helping a deal and the number you carry is pretty well and i would -- our attitude has been to get it out of the way and not be too cute. vonnie: pharma, verizon and you tx -- utx are lower in the dow. what companies kelly bank on in this administration are what sectors? laszlo: -- vonnie: what companies kelly
bank on in this administration or what sectors? the economy has continued to do well, so we are still at stocks like amazon, priceline, whatever favorites and our sales target was up $112 today. stocks that have been well, i would not be looking for things like retailer and some consumer stocks that have been sluggish [indiscernible] stocks like ralph lauren, which is a great brand but has not been a great stock and we want to stay away from trying to get back into netflix [indiscernible] is intriguingtle for the traitor for some of you -- trader for someone who arrested ability -- for some of
you has that ability. vonnie: laszlo birinyi, founder and president, thank you for joining us. mark? mark: i feel like the ultimate party pooper. one minute, we are talking about dow jones 20,000, stoxx 600 366.53, not quite the same ring. i will do my best to engender the enthusiasm. there is some because it is up 1.3%, big game, biggest gain since december 8. sorry, most since december 8, highest since december 30. interesting to see them rising today, index up to 1.7%. gaining as donald trump prepares to announce plans for the border war with mexico. wereesort stocks declining. little change right now, dipping after rising to the highest in
2.5 years yesterday since falling to a 13 year low last january. the games are up to 130%. the ftse at 7337, a bit more collider us. i could see ftse 10,000. i will not save one but there is not much clamor in the marketplace today. cheers up today more than 5%. most since december 8. biggest lender reporting fourth-quarter earnings that beat goldman sachs. she expects growth in all of its 2017, logitech, what a move, maker of computer mice, shares up i-19 percent. biggest gain since 2001. third-quarter earnings beat estimates and raised sales, profit outlook and the stock is more than doubled since
publishing fiscal fourth-quarter results back in april. in each of the third quarters, this is what the chart shows us, earnings have risen, sparing shareprice gains of more than 10% on each occasion. what a wonderful charge. quickly, small company in the u.k., a stoxx 600 company, wh smith, shares up by 7.8%. one of the world's oldest, 225 years old, they basically showed that brexit has little effect on its performance with a strong demand in train stations and it's driving shares higher. i will tell you more later. coming up, the chairman of the house committee on homeland security talks lending options for trump's mexico wall. republican congressman michael joins us next. this is bloomberg. ♪
live from london and new york. i am mark barton. vonnie: i am vonnie quinn. this is "bloomberg markets." president trump is the filling promises during his election campaign. today, he will unveil actions on national security, including steps toward building a wall along the mexico border. the whitelli is at house with another scoop. kevin? kevin: thank you. i hear from sources within the trump organization that they have decided to name bobby burchfield as independent ethics advisor and george soriano as chief compliance counsel to the
builder promise from their january 11 press conference to divide between the trump organization and white house. meanwhile at the white house, president trump later today is expected to unveil key executive action to fulfill a campaign promise on immigration policy. look for him to lay out a plan for how he will secure the u.s.-mexico border. however, he could run into potential problems with members of congress, anticipating that budget committee members of how much funds will be allocated for the action. that remains to be seen. vonnie: kevin cirilli reporting from the white house, thank you. as we saw, resident trump tweeted last night that they would be a big day on national security. among many other things, we will build the wall. for more on trump's plans, let's handed over to david gura. david: thank you. we are joined by michael mccaul,
representing the 10th district in congress. great to have you. we see the emphasis with the exclamation mark on building the wall from the present of the united states. to share his enthusiasm,, smith? jarvis min: we have tried to get the border secure for the 12 years i have been in congress -- congressman: we have try to get the border secure for the top years i have been in congress and the question is, what will it look like and how will it be paid for? the executive order, as i understand it, basically calls upon the congress to authorize dnd find the implement -- fun the implementation of the wall. i had conversations with homeland security and it will involve many things, in addition to him brick-and-mortar wall, it would include technology, aviation assets and achieving the 100% visibility in aid from
the sky to see what is happening on the ground. wall is symbolic, but the wall does stand for securing and getting operational control of the border, which was a big campaign promise and pledge the president made, and i advised him on it and agree with him. david: hold on, the president-elect and then president campaigning saying that mexico would pay for this. what has changed and had to convince taxpayers it will be more than just an expensive symbol on the southern border? congressman: great question. what will happen is we will have an emergency supplemental bill that we call the congress with emergency funding to pay for the of the security measure, and then i think you will be looking at how it will be paid for down the road.
are creative ideas that i have been coming up with and others in congress, where the taxpayer makes the initial down payment but then eventually, the security measures paid for by things like increasing and putting in border security fee on visa applications from mexico and central american countries that are the biggest offenders of illegal immigration to things border security fee, crossing the border, and also looking at remittances going from the united states into these countries with the border security feet attached to that. david: i want to get a sense of the quality of the conversation between the congress, your committee and then you white house. beenunds as if you have coming up with a plan, the president has been talking about it and announced it on twitter last night that there would be a speech at the homeland security department. are there both sides talking about it, is the congruity between the white house and
congress? congressman: this president wants to move at lightning speed and be decisive. he is going to have to work with congress, whether he likes that or not. the fact is he is moving other quickly. we are getting a lot of this information real-time. position,unique david, having been an advisor to nationalign on the security team. this is nothing new to me. a lot of these ideas -- and he will be rolling out ideas on the vetting process with lisa security -- rip security on thursday -- i have been in the fortunate position to be inside the trunk team to advise them on the issues. trump team to advise them on the issues. i am not seen it in executive orders. david: i was in that the demographics of your district,
more than one third of the population there in austin and houston, hispanic or latino. what to those constituents tell you about the rhetoric on immigration and the conversation about building a wall? think texas in general, because it is a border state, they want that security piece done. between thecurity sovereign nations. on the other hand, they also recognize the partnership as a trading partner and other ways that mexico is really a neighbor to the south and not an enemy. -- at leastk speaking for texans -- mexico is not an enemy but partner, but this security has to be done to keep up illegal drug traffickers, drug cartel members, and potential terrorists. there is a pretty strong consensus that it needs to be done. david: in chicago, we deal with this in real time.
president trump to eating -- if chicago doesn't [indiscernible] , i horrible carnage going on will send in the feds. of you give us some sense who the feds are and is it something you committee would oversee? congressman: it involves homeland security. some of that is frederick to say stop the violence -- rhetoric is to stop the violence. ironically, chicago is one of the strongest gun-control cities but one of the most violent in terms of gun violence. we need to look at what is happening in chicago and what we can do to stop that violence and keep guns out of the hands of these criminals and mental illness cases that we see so much of with carnage. what he means by the feds -- i am not sure. the feds could be the fbi, the , therestates military
are restrictions under the constitution in terms of how much you can use the military, certainly the national guard can be deployed in another capacity and in emergencies. cyber let's talk about security. after allegations emerged that russians are involved in the u.s. presidential election and medlin, you called for a congressional investigation. you are alone in doing that. since you made the call, have you made headway getting colleagues to join and will we see an investigation on the house side? congressman: i think there has been headway in terms of the senate intelligence committee burr andchairman linking members and as they will officially investigate this. and the dossier as well. , regardless of political party, when you have a foreign adversary like russia scampering -- tampering with our elections and democracy, to me, that
warrants a more thorough investigation. another intelligence community and fbi are further investigating the length that took place and the influence of maypruden may -- mr. putin have had. at whatngerous to look they have been in the past with spies but now the cyber power capacity is on you to mention that i think we need to be taking a look at. i think my committee with oversight over cyber security will be looking at this issue. close to thee campaign as an advisor, has there been any pressure in direct or direct not to pursue an investigation? congressman: not at all. in fact, very much very strong support to seek the truth. i got briefed on this classified and nonclassified. i advised the obama administration that they should
call russian out for what they are doing and there be consequences to that. i would advise the current administration the same. after he gotrump the right briefings on the intelligence side has recognized the role that russia play. david: the question about priorities off of this opportunity conversation and election. what is the broader takeaway as a look at priorities for the dhs going forward with regard to cyber security in the wake of what happened with the election? what will change in 2017? congressman: i think it will continue to be a growing threat to the united states, both theft of intellectual property, espionage, china stealing 20 million security clearances, the russian influence in the election. former secretary-general johnson has admitted the election system as the critical infrastructure, allhas a mission detecting
16, 17 critical infrastructures, that being energy, water, electricity, all of that not to the election system. what my plans are, in addition it under onevanize agency, called the cyber and in procession protection agency within the department. david: thank you. michael mccaul, chairman of homeland security. vonnie: david gura, thank you. let's turn to the markets. abigail doolittle back with a closer look at dow 20,000 movers. abigail: the big story today. before we look at new movers, we have a great graphic showing how fast this rise of the dow 20,000 from 19,000 was, 64 days, the ,econd fastest point gain behind the 30 days back in 1999.
thoughts of momentum for stocks. as for what is behind this strength in reverse order, boeing is up 11% since november 22. investors think the company could benefit from president trump's policy toward the company, despite fears around crosscutting -- cost-cutting. plus, a very solid quarter. despite concerns run guidance, second up, disney, shares up nicely since november 22, up about 11%. this after paul sweeney of bloomberg intelligence says investors are less concerned about cord cutting them cable and that espn is solid and they keep putting out hit movie after hit movie, including "rogue one." in the difference between -- and dow 19,000 between dow 20,000, goldman sachs really helped by trading and a massive
move in the 10 year yield in the last quarter, helping goldman sachs trade higher. mark: let's have a look at what is happening to european equities. the dow is that 20,000 but stocks are rallying in europe. biggest is the stoxx 600 since november 9, 1.3% gain today some of the highest level of the year since december the 30th. ftse up by one third -- .331%. it was at a record. the dax is also higher, 1.8%. gains in france, as well, so not just the u.s. with shares. no records for those [indiscernible] this is bloomberg. ♪
are watching oil, weekly inventories down. what are you expecting? 52nie: crude trading at point $93 a barrel and we all are waiting figures. lastly, we had a built of 2.8 4 million and this week, more barrels that we were looking for, almost double what we were looking for. you can see that crude trading cents..42 -- 42 there was less than the drawdown we were looking for, so bearish oil prices. this as inventories were higher, and we will looking for a drop of more than half a million barrels. the forecast were all in the wrong direction. forecastlike the only that was close to mark was the gasoline inventory, which was for 900,000 and instead of 6.8
thousand. the main figure is u.s. crude oil inventories with the buildup 2.8 4 million barrels and -- 2.84 million barrels. we will look at where oil is trading and it is bearish, down about 1% now. we see a further drop after those inventories came out. mark: let's move on and talk about prime minister theresa may , giving in to demands from lawmakers, agreeing to publisher plans for brexit in a weekly session. an she talks about her upcoming visit to the united states. theresa may: i am pleased i am able to meet president trump so early in his administration. that is a sign that the strength of the special relationship between the united kingdom and united states of america, a special relationship on which he in the intent to build. mark: joining us with his take
is robert kaplan, a senior adviser at the eurasia group and author of a new book. roberts, thank you for joining us. ,o they have common interests theresa may and donald trump, usedse donald trump has the rhetoric america first and today in london, theresa may when referring to potential talks between britain and the u.k. talked about putting britain first. do they had mutual interest when it comes to trade? robert: here's the problem between the united states and great britain with the new administration in washington because britain is committed to leave in europe, it is committed to brexit. the only thing britain has -- to to max of five magnify the importance of nato, if britain leaves europe, then nader becomes more important for great britain and president trump is someone who is
disparaging nato. just when britain needs a stronger nato and needs to pull closer to the united states, there is a new administration in washington that has been disparaging nato and that in fact has been promoting anti-europe parties throughout the continent in france, germany, poland, etc., if you listen to president trump advisors. structuraling that mismatch on a larger historic issue. mark: is there a risk that theresa may alienates her eu counterparts by heading to the u.s. so soon after donald trump castigated the eu and basically and itit an institution is only in the interest of furthering germany? does it risked alienating the potential talks with the eu as this brexit process gets
underway? robert: yes, on the other hand, i believe european leaders will cut the british prime ministers some slack because of the historic special relationship based on the anglosphere between the united states and great britain. isember what the eu historically, an outgrowth of american power after the victory in world war ii and the cold war. without american global power project in itself, the eu would be impossible to imagine. therefore, president trump has offended, not just the order, but theii post-cold war order and the post-post-cold war order. vonnie: when it comes to the german chancellor, what role does she play in the u.s.-europe relations, particularly given there are other considerations such as admin put in? robert: angela merkel is in a difficult position because the
german reich is rising and saying things that no one has said in germany since the end of the second world war. she is facing an election coming up. she is definitely going to be weakened in that election. on the one hand, she stood up to tin better than anyone expected. germany,om former east speaks russian, and she knows his game well and has stood up to him. now you have a president of the united states who has no evidence whatsoever of talking about being friendly to britain and here's the danger, simply because of the expectation of a expectationmall -- between russia and the united states, countries from poland to the baltic states, to bulgaria, romania, etc., will think more and more about making side deals with moscow in advance of that.
that is a corrosive situation that the german chancellor needs to address. vonnie: how do you see the u.s. relationship with russia progressing? tillerson has been confirmed, 11-10, i'm not sure you were certain it happened but it did. you have pressure from donald trump to readmit russia to the g 78 and there are negative comments about nato and there is a syria problem, so it does that mean for u.s. involvement in syria and iran? robert: the one bright spot is that tillerson has proved to be a much more skilled negotiator with the russians than john kerry has been. john kerry has been taken to the cleaners by a russian foreign ministry men, while tillerson has stared down and got concessions from igor, one of andn's closest advisers much tougher, so tillerson knows
the politics. he had to in order to be the largestad of the worlds energy company and is set to negotiate with russians. the problem is that when i am will get is that trump us into or get the united states, that is, into an unnecessary conflict with china, while at the same time appeasing the russians and upending the post-cold war order in europe. mark: can we talk about china because you say the new administration will upgrade freedom of navigation exercises in the south china sea? had disciplined does the u.s. have -- how discipline does the u.s. have to be to prevent the conflict? robert: extremely disciplined. in the late obama administration, secretary of defense ashton carter was trying to upgrade what were essentially innocent passengers [indiscernible]
even though they were called mistake you made by the media as of navigation exercises into real freedom of navigation exercises and failed at that. the white house would not go along with him. it seems apparent that secretary mattis, president trump, will make more robust exercises in the south china sea, real freedom of navigation exercises, which means helicopter operations, radar operations, etc. that is well and good. here's the problem, that has to be accompanied by the most disciplined and coordinated of theng coming out white house, the national security council, the defense department and the state department. what we have seen during the obama -- during the trump campaign manager the first few days of trump in the white house is that in terms of messaging, the white house has been chaotic. mark: can we talk about the theme of your book? thatre essentially saying
trump is threatening disengagement from the world and this violates the trajectory of the u.s. history, so it leads to the obvious question -- what is the proper balance than for the u.s. when it comes to foreign policy? robert: united states is fated to lead because on one hand, we are protected as a nation from the great conflicts of our for eurasia, but -- from afro eurasia, but our river system, which has more miles of navigable inland waterways than the rest of the world combined, links to the mississippi and right into the great global sea lion to communication, so we are interconnected with the world but at the same time, protected from it. it is a marvin lewis geographical situation and that has been the root of american power projection -- it is a marvelous geographical situation and that has been the root of
american power projection. every president with variation has gone along with that. we had isolationism in the 1930's, but it took five days to cross the ocean in an ocean liner from europe to the united states. in a world of cyber, we have never had a president like donald trump in the sense that he seems to be upending all the traditions of american foreign-policy since world war ii. come upwhere we have to with a new category for political theory? what is the american position going to be? many hawkishg so comments out of the administration, yet, we are unsure who be sending foreign policy. robert: the good thing is that an excellent, inspired choice to be secretary jamesense, ji madness, and >> tillerson i think brings basic understanding that are greater than john kerry
did. the problem with tillerson is he has no public policy experience. mistakes,xpect some some rookie mistakes in the first few months, but to the extent that tillerson and mk itis kenseth foreign policy, may not be to about six months from now. vonnie: what happens when it comes to the middle east, specifically about israel and the idea that perhaps mr. kushner could have some influence there? robert: i think it was a mistake for president trump to say he wanted to move the capital from tel aviv to jerusalem. vonnie: they argue back track that that isn't a priority. robert: of course it is functionally the capital and has been for decades, but it is the terrorists you give away -- the [indiscernible] you give away in advance to go shooting. you give it away -- you do not
give it away before their negotiations, that this undisciplined policy. vonnie: robert kaplan, we have to leave it there. come back again soon. one of our great strategic thinkers and author of "burning the rockies: how geography shapes america's role in the world." out on bookshelves. earlier today, bloomberg caught up with david [indiscernible] david: it is appointed maximum bullishness will probably take place in march, and the reason that march becomes a critical issue is all of the tax reduction, all of the enthusiasm that they have about potentially positive earnings divisions from world corporate taxes, that will be -- have to address and reconcile at congress, which is more inclined toward a revenue neutral tax reform.
you are watching bloomberg. i am vonnie quinn. barton.am mark this is your global business report. five billion dollars share buyback. the company's chief executive tells bloomberg why this is the right time to return cash to shareholders. takata working on the biggest safety recall in automotive history. mark: today's bloomberg quick take, challenges racing brazil's new president as he tries to revive the country from the worst recession in history.
back $5proposing buying billion of stock after projecting sales of the second-biggest drugmaker will likely be unchanged from last year. we spoke earlier with the ceo joseph. >> the announcement of the share i back reinforces the company's confidence in that growth trajectory. we will continue to do m&a, to billion dollar to $5 billion range -- $2 billion to $5 billion range and now we decided to buyers owes back in return some to the shareholders. mark: cisco is making an acquisition. the world's biggest maker of networking gear agreed to -- for the 3.7 billion 3.7 billion dollars. they snapped them up before their plan to go public this week. to avoidking steps bankruptcy, saying they want to avoid a lengthy court process
that could disrupt this supplier parts needed to complete the biggest safety recall in auto history. their faulty products linked to at least 17 deaths worldwide and the subject of recalls that may exceed 100 million units. our bloombergor quick take, or we provide content and background on issue of interest. brazil's battered economy taking another hit. the imf cutting their outlook on more than half. just .2 of 1%. the news highlights the asllenges faced by president he tries to revive the economy from their worst recession on record. here is the situation. corruption at their state right to that has ensnared members of business and political elite. president rousseff, who was removed after being impeached last year for bypassing congress to finance government spending, and initially, this is
confidence rose from record lows but in recent months, it has taken a downturn. throughout the history, brazil cycles andblems with about half the exports are rock products, so prosperity is tied to commodity markets. on paper, brazil looks like a powerhouse. offshore oil reserves include the western hemisphere, the biggest discovery since 1976. on the other hand, wealth this tradition is the most unequal and falling commodity prices have sent the economy sputtering. temer isent, president working to put them back on solid footing, limit expenses, restore social security systems, and have a more business and the environment, and temer, unlike has experienced i came deals and good relations with legislators. with growing opposition of his own coalition to austerity a system ofere is
institutionalized corruption connecting brazil's largest companies with political parties. you can read more about brazil on our quick takes and that is your global business report. head to bloomberg.com for more stories. mark: still ahead, the dow hits 20,000 after flirting with it for weeks. this is bloomberg. ♪
live from london and new york. i am mark barton. vonnie: i am vonnie quinn. this is "bloomberg markets." the dow topping 20,000 for the first time, joining us is michael regan and on the phone, patrick spence, vice chairman of equities at robertw. baird. -- robert to baird. michael, dow 20,000, and it floated with that level for at
least one month, something psychological about the barrier. michael: typically, wall street has forgotten about the dow. all the series analysis is based on the s&p 500. the dow jones has a price weighted index and is not really practical in this day and age create it was fascinating to watch that 20,000 really becomes a resistance in early january . kicked kicked it like it at 19,000 -- kicked in that 19,000 in the beginning, but that was during a period where there was a vacuum of fundamental news in the market, earnings season was not up and going, trunk had not yet take -- p have not yet taken office, so it took on more significance. now, we have really seen trump the refocus on the equity-friendly parts of his is knownhich -- trump
to be unpredictable comes i don't think the market was confident on when he would focus on but here he is focusing on things that get to stock investors. vonnie: you are focusing on [indiscernible] this line, youe can see right here, it comes from way down. michael: that is looking at earnings estimates for 2017. the point is that the earnings picture has improved enough for 2017, at least with analysts estimate, that even though we hit this new level, we are not blowing out on evaluation level for the dwo. -- dow. s and p is at about 17.3 forward earnings, so we are setting new highs but not necessarily blowing out higher on the fundamental valuation metrics, so that is one take away from this. the new high is not necessarily accompanied by much frothy
levels of valuation. , to: let's bring in patrick write for joining us. we have -- thank you for joining us. you said it would happen soon and it did, a couple of weeks ago, how much further is this? i joke and say that you are a has risen ae dow few hundred percent, surely that cannot be too much more? patrick: i remember clearly, i think back in 1999, when we had the last 10000 and there was a lot more excitement in those days, had streamers, a lot of hoopla. it remains the most unloved bull market in my history of investment banking and advice. be in thet to see it trading room this morning, but it is still pretty anemic. you have got to remember what we talked about last time. we are moving from a multiple
expansion driven market to an earnings driven market, and in respect to the trade policies, which i think as long as they are smart trade policies, you have got the president that strongly is pro-business and very pro-the stock market and progrowth. he is a progrowth president, so he would do anything to get this economy moving, whether that is tax cuts, fiscal spending, cutting regulation, so i still feel that you are moving from this multiple driven market to an earnings driven market. we are looking for 13% plus an earnings this year, and some of that is because of the oil stocks. mark: patrick, when it comes to leadership, financials have led the rally since trump. you are seeing ibm rise, boeing rise, who will lead the next leg up? patrick: that is a fair point
but the last time we were on the pain we talked about the trade being cyclicals, materials. materials are up 7%, one of the best-performing areas, so i think materials, we are talking about oil stocks. i do think that financials are going to do quite well within that. i think it is a cyclical stocks, the ones we just talked about, that will do the best. certainly, i see some of the tech. mark: we have got to wrap it up. we will see you in the studio soon. thanks for joining us. after expensive, equity vice-chairman at robert w baird. this is bloomberg. stay with us. ♪
this is the european close on "bloomberg markets." ♪ mark: we are going to take you from wall street to madrid and a couple of stories out of london, brazil, and washington in the next hour. here are the top stories we're following on bloomberg and around the world. as the dow crosses the 20,000 marks, it reignites investor optimism for economic growth. vonnie: in u.s. politics, president donald trump plans a big day as he calls it on national security. he is said to make steps toward wall on the mexico border and limiting refugees into the u.s. in an interview with spain's biggest banking chief, the executive chairman says her firm