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tv   Bloomberg Markets Americas  Bloomberg  January 26, 2017 12:00pm-3:31pm EST

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david: from bloomberg world headquarters, i am david gura. we will take you from philadelphia, to london and beijing. speak thisrump will afternoon before the congressional republicans at a joint retreat in philadelphia. we will bring you his comments live and british prime minister theresa may will take the stage in the city of brotherly love. -- withis exploring a charter communications. that deal would make it the largest internet provider in the united states. ford's profit drops after the report earnings as they make changes in the new political environment. ceo mark fields joint bloomberg to weigh in on the apple sales and profitability. abigail doolittle joins us with a look at the markets. abigail: we are looking at next trading action. investors are taking a breather after the two-day rally. the best two-day rally for the
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dow since the beginning of december and left it above 20,000. up more than .2% carving out yet another record high and on pace for another record close. we have strength for stocks despite the unchanged picture. behind the strength is optimism, but also earning optimism and there may be reason to be optimistic. 822,we look at g # btv this is a eight year chart for the s&p 500. negative, we are looking at earnings recession. around 2001 there was a brief recession. had interestingly, we have a very minor earnings recession over the year -- last year or year and a half. there is indication we may be
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rising. as for some earnings movers today, for some winners we are looking at a mixed bag. sherwin-williams, united rentals, and united rentals -- requiring rentals for 965 million dollars -- $965 million. behr says they posted a very strong quarter and they are positive on guidance and the valspar deal. we have invesco, both of these companies missed. invesco beat in revenues, but the picture is zero. -- assets under management dropped by $5 billion. of the stock is trading down and franklin resources trading down and sympathy report tomorrow before or after the bell they
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report tomorrow. right now the picture is not looking great. finally, back into the bloomberg and the s&pbtv 4087 500 is in blue. in green and red is the economic surprise indicators. we see stocks writing and the s&p 500 rising is on positive economic surprises. there is fundamental backing for stocks that these all-time highs. vonnie: abigail doolittle, thanks for that. we have breaking news now. mike pence -- as you can see is arriving at the gop retreat in philadelphia. that is the vice president at the gop retreat in philadelphia, anticipating remarks from him and president trump who left of fort -- a short time ago on air force one. mike pence has already a lot -- already arrived. taylor riggs has more from our
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newsroom. taylor: resident donald trump speaks -- president donald trump speaks today at the annual retreat in philadelphia. he plans to start bilateral trade negotiations with most countries in the trans-pacific partnership pact. donald trump moved to pull the nation's -- the country out of the 12 nation agreement. he anticipates a formal request for funds from the top administration to pay for trump administration to pay for building a wall. here is mitch mcconnell speaking to reporters. mitch: we anticipate a supplemental funding through the administration. we need to get the director in place and then we will anticipate a supplemental like any administration to give us -- to get a supplemental process. president has's canceled a planned meeting with president trump next week after
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the president said he may cancel it if mexico refused to reimburse -- continues to refuse to reimburse the u.s. for a border wall. the washington post reports the entire senior level of management officials resigned from the state department today. rex tillerson is now taked with -- tasked with reassuring the state department workers who are panicked over the trump administration. lawmakers heckled the house of commons leader shouting "disgraceful," as he announced a tight schedule in three days in the committee. prime minister theresa may's government placed a matter in -- in front of parliament after a supreme court matter earlier this week. global news 24 hours a day, powered by more 2600 journalists and analysts in more than 120 countries. david: republican lawmakers are
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in philadelphia putting together a plan for working with president donald trump. they say they need to get on the same page, but it has been a rocky week for the president with controversies over the size of his crowd at the inauguration and allegations of massive voter fraud, and his assertion that mexico will pay for the wall. he will not attend a meeting scheduled to take place next tuesday with president trump. kevin cirilli is in philadelphia today and michael mckee joins us on set in new york. awaiting the arrival of president trump in philadelphia. what will he say to his colleagues? kevin: president trump is going to try to put together an image of unity within the republican party, arguing he has the political clout to get through the key agenda items that he would like to see pass through this congress on a variety of
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issues ranging from trade to the regulatory policy on the economy as well as the environment, immigration policy, all of which are busy getting allocated on the calendar. before -- this all comes when he will talk tomorrow in a press conference with theresa may. and ill address lawmakers am told she will also give a leadership senior regarding her speech on trade agreement with the u.s. and the latest development on brexit. vonnie: it seems like we are picking up steam when it comes to negotiation said talks. we are -- expecting an executive order sometime in the afternoon. an executivect order on voter fraud. the allegations the president has made that there were 3 million-5 million undocumented
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aliens or others going to -- during to the election, he seemed to be mistakenly quoting a pew research center study who said there were millions of people mistakenly on voting rolls because they were not -- they were moved and not purged. it will be interesting to see where that goes. the story today is the non-meeting and this is stunning. the idea that donald trump would tweet out to the president of mexico, don't come if you are not paying for the wall and then he got a response saying i am not coming. intoe: well he backed him a corner. mike: that is the situation. hacklesd trump raised -- a lot of pressure on the mexican president not to come. they were feeling insulted and on top of that, today saying if
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you are not paying for the waldo bother coming, the surprising thing here -- for the wall don't bother coming. --prising thing here is people thought donald trump was a dealmaker, but you do not insult people before they even get into the room to make a deal with you. it is hard to understand how he will make progress on this. be united states could still badly hurt from pulling out of nafta. david: what do you make of what we have seen on twitter this morning? kevin: democrats are going to this meetings for being canceled. mexican leaders are definitely taking a look at -- a and
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politically speaking, here in pickupst week, to have a like this on one of the key central areas in which president trump campaigned upon is not necessarily a good look. however, when you speak more broadly, from a policy standpoint, president trump's assertion to remove himself from the trans-pacific partnership and to be meeting when he returns to fill it -- from philadelphia with orrin hatch in the white house to discuss trade agreements and more executive actions on foreign policy, all are coming onto time in which business leaders not only here in the u.s. but worldwide are curious and perhaps a bit uncertain with just what their relationship means with this new incoming white house. vonnie: i want to break in that the white house secretary sean spicer is saying the u.s. will " continue to coordinate with mexico on a meeting and look for a date in the future with mexico
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president." this is supposed to be a day of news about the president and his allies in congress getting together and working on a legislative agenda and it is supposed to be about the greatest ally of the united states coming together to -- the united kingdom, coming together. all the headlines are instead going to be about a twitter feud. he is stepping on his own message again, which he has been doing regularly and it cannot be reassuring to investors or people overseas. use all the report that all of these people at the state department resigned. vonnie: and just look at the mexican peso. it has been volatile trading all day. tweeting the trump u.s. is a $60 billion trade deficit with mexico. it has been --
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a $60 billion trade deficit. the problem is that donald trump is suggesting it is necessarily bad. we are buying a lot of their products in the foreign exchange goes to mexico and they invest back in the united states and we get cheaper goods. we would not have as many and is low-priced -- you can see him getting off. his first trip on air force one, he is disembarking the plane. continue -- notie: --mike: you would have the cars we get imported from mexico. you would pay a lot more for them in the united dates because they cannot build them at a makes sense. that that is the kind of thing you have to take into a -- into account. buymport things so we can things oversees more cheaply and it is a benefit overall to consumers.
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obviously, a problem for workers. trade adjustment is to be worked on. a trade deficit is not necessarily a bad thing. vonnie: research is showing the dollar depreciation will weigh on gdp because of an increase in imports and the decline in ghports and it will also wei -- maybe to a lesser -- is he going to get his hand slapped at all? does anybody in the gop have the power over president trump to actually give him a little bit of a talking to? no.n: there is no one within congress who is able to get this white house on a message that would align with congressional leaders. we saw that time and time again on the campaign trail. just in covering congress over the past couple of weeks when you notice that at every single
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press conference there is a first question or a follow up question not about tax collet -- tax policy or dodd-frank, instead about twitter or what is going on on social media or the water cooler talk of the day, if you will. and that has got to be frustrating particularly for a republican-controlled congress that is looking to pass key the regulatory policies -- the larotytory -- deregu policies. ides and theyg to an told me they were willing to announce that repealing aspects of dodd-frank has turned into a first-year item. all of that economic fiscal policy is being completely dwarfed by the development of what we are watching unfold on twitter. david: we will check in with you later in the afternoon as the
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principals get to the hotel in downtown philadelphia. will verizon by charter or something else? this is bloomberg. ♪ ♪
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vonnie: this is "bloomberg markets.: " verizon ceo approaching liberty about charter communications. it would create the largest internet provider in the u.s. let's go to gary smith who covers media for bloomberg news. thatus what do we know
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definitely happened? jerry: we know there was a conversation between verizon ceo andliberty media ceo liberty media has a large investment in charter. there has not been any direct conversations between verizon and charter at this point. that is really what we know at this point, which it seems like this is very limitary. david: what would this combined company look like? let's play out -- play it out. jerry: this would be a company that would compete with anyone from comcast to at&t. the fact that this is being considered says a lot about the way the media and telecom industries are developing right now. it is a space where cable companies and their subscribers have leveled off and in some
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cases starting to decline. wireless companies like verizon, their subscribers are also flatlining. they are both sort of looking at their respecter markets and saying, we do not have a whole lot of more growth there, so we need to find more opportunities. people are watching a lot of online video on their smart phones, so the ability to deliver them television service which cable companies do and wireless service, which verizon does is getting to be very attractive. vonnie: we spoke with craig of mcpherson a little bit earlier to figure out what this deal would be about. distribution is a big part of it. here is what he had to say for the justification of the deal. >> the difference between charter and directv is that charter is a physical infrastructure and i think if verizon decides to make a bid what theyr, then would be signaling is not a strategy anything like at&t about content.
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it would be about trying to get a wired infrastructure to support a denser wireless network for the future. vonnie: we are talking broadband and the sense of moving up from 4g to 5g. jerry: i think regulatory hurdles are uncertain now under the trump administration. a lot of people think deals will be more likely to get approved. what craig moffett is talking about is true and that is the idea that wireless service will be just as fast and reliable as the internet you have at home and a wireless company like verizon to do 5g they really need -- may need to get the cable companies to team up with them because the cable companies have a much better broadband infrastructure for that sort of thing. vonnie: we will get an update from you later on. david: president donald trump continues to apply pressure on his counterpoints for u.s.-china
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relations. this is bloomberg. ♪ ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. promises include sweeping tariffs on chinese imports and he said "we will follow two simple rules, buy american and hire american." our chief economist is joining us here in new york. a treat to have us onstage with us. how is the rhetoric playing out in china? what has the official response been to donald trump as a candidate and as a president? china is paying extremely close attention to this and as donald trump or rex tillerson makes statements that
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china sees as infringing, china is responding and signaling that they are aware what is going on. the reality is the existing relationship is really favorable to china, they are benefiting from the existing relationship. what beijing does not want to do is escalate this unnecessarily and that is why so far it is a measured response. tweet? he doesn't tom: i think you would have difficulty getting. ing.ifficulty tweet vonnie: we have just seen a war of worlds with actual consequences between enrique pending until -- the mexican president -- tom: i think now that donald trump is in the oval office his
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tweets have a high status rate, almost becoming policy. i think we have seen from china that they want to respond to substance. if it is tweets for opinion pieces, they will respond in the press and the official press will not respond with kyle -- concrete policy moves. david: take us back a few years ago. how has the government may it so we will not -- made it so we will not repeat itself? are i do not think things at quite the level of tension at the beginning of 2016, but there are similarities, once again with the yuan weakening and capital flowing out of china. i think the goldilocks will be a
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shallow path of rate hikes from the fed and a stable dollar. if we see an accelerated path of rate hikes from the fed and a stable dollar, that will put china in a difficult position. david: great to see you, thank you very much. that is tom orlik joining us here in new york. vonnie: ford ceo mark fields on his recent meeting with president trump and investment strategies of 2017 and the latest company earnings. this is bloomberg. ♪ ♪
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david: live from bloomberg world headquarters in new york. vonnie: this is "bloomberg markets." let's begin with headlines. taylor riggs is in the newsroom. president has's
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canceled his meeting with president trump. tweet confirming the cancellation. a from donald trump -- after a tweet from donald trump. the mexican president also says the united state -- x igo is willing to work with the united states. meets with donald trump tomorrow. officials say the does not have enough expert trade negotiations for a sweeping new commerce agreement with the u.s.. the white house will release more details later this afternoon on president trump's
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plan for investigating what he considers to be voter fraud during the presidential election according to press secretary sean spicer, who says the president is still willing to work out the details and is signing executive action today at 4:30 p.m. global news 24 hours a day, powered by more 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. vonnie: thanks for that. let's get a check of u.s. stocks. after the records, we are still upded higher on the dow, 20,101. the s&p 500 down less than .1%. the nasdaq is unchanged. elsewhere in the world is where the action is today. there are major movers. abigail: we are in the heart of earnings season so we have movers on earnings including car stocks. ford and chrysler reported mixed
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quarters. ford is trading lower and chrysler slightly higher. ford missed earnings by 1.3% to put up $.30. they beat four point -- 3.4%. there was a $200 million charge cannot go forward with the mexico plant and bloomberg intelligence analyst says the key here is light trucks, 70% of their vehicle sales came from light trucks. that will be the key going forward. i was against the backdrop of unit volumes dropping. chrysler slightly higher and gm trading down in sympathy with ford. of the most read articles on the bloomberg has to do with the fact that tesla rallied in a huge way. over the last two days tesla is lower. upce december 1, tesla is 40%. it looks like the company is
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benefiting from a few factors, the solar city deal went through and giga factory is producing batteries and it appears elon musk may have the ear of president trump. tesla is a "poster child" for made in america." we hop into the blue turk and -- a look at g # btv we see tesla has been making wild swings within a range. ls really like the vision of the ceo and there's talk about the cashars talk about burn. vonnie: abigail doolittle, thank you for that. sterling is about .4% weaker. we have breaking news from the meeting of the u.k. prime minister theresa may with u.s. president donald trump.
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gopesa may will attend the retreat and speak later on. apparently she had a conversation and donald trump confirmed he is committed to nato. she also said she hopes she can work with trump "opposites attract." she said it was too early to discuss what areas the trade deal will cover. she does not have a negotiator for it and it is to early for the country to get into actual negotiations. it is not allowed until they trigger article 50 and she says it was important to sit with trump and hear his views directly. david: she will have an opportunity to sit with donald trump tomorrow in the white house. mexican president enrique pending at dell -- enrique pena niento canceled his trip to the white house.
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i imagine there was a conversation in mexico ahead of thetweet coming out about reception the mexican president would get should he go there next week. yesterday there were rumors that the mexican president would cancel the meeting and a lot of political public opinion leaders were actually arguing for that. there was a debate online. citizens were saying they can actually cancel the meeting. what happened today had been brewing since yesterday. chess: was this a game of that went wrong or was it just some words thrown around that may have developed into a massive war of words? >> it sounds like it is the latter bit you mentioned. it seems to be a back and forward between the enrique peña nieto mexican president and the u.s. president. donald trump said this morning
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after the mexican president said mexico would not pay for the wall, trump said this morning that it is best to cancel the meeting and so the mexican repressive and -- mexican president responded that even though they were willing to be working with the u.s., they are canceling the meeting. david: i gather the foreign minister was instrumental in getting donald trump to mexico when he was a candidate. is there a sense that that was all for naught and that this relationship is on the rails? >> the reality is that it is unclear. a lack of clarity is really driving mexico at the moment. that instrument at the meeting in which trump came down as a presidential candidate and left the government shortly after as a backlash and came back in the hopes that he would be a good person to bring together both governments. at the moment, we are getting
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mixed messages. donald trump sent the peso in a rally by speaking positively about mexico and mexican officials and negotiations that could happen and today saying he would not want the meeting. it is more a lack of clarity than anything else. vonnie: we are showing the mexican peso -- versus the dollar having a wild day and it is now 1% weaker. you can see the index, there was a big jump down when it was clear the war of words was escalating. obviously emotions are running high and plenty of businessmen typexico -- "is this the -- is this a type of thing that could go away in an instant? >> at this point it is all unchartered territory.
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what matters the most is when we actually get concrete agreement, whether on tariffs or order taxes or not. that goes around nafta, whether it is a complete renegotiation or whether we are keeping some of the things already in line. this is what people are actually looking for. borrowing costs has also gone up significantly since trump was elected, so it doesn't seem like something that could go away easily. we need to see point by point what will be the future of trade. david: thank you very much. that is isabella joining us from texaco city. president trump is scheduled to speak in philadelphia. we will monitor that and bring you his speech live as soon as it begins. vonnie: ford motor ceo mark shields has been visible lately. he and other industry -- auto industry meters met with president -- industry leaders met with president trump.
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ford just announced earnings in the fourth quarter for year 2016. earlier today, david westin asked mark fields about vehicle sales and profitability throughout 2016. >> it was a very positive year for us and our cash liquidity is strong. we distributed $3.5 billion to shareholders last year. a very good year following a record year that we had in 2015. w: you have record profits in north america. at the same time, vehicle sales are softening. are you shifting toward europe and china? you were profitable in europe for the first time last year. of our objectives as a company is to get a better balance of profitability. as we get into 2017 we expect
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that our profits are going to be -- continue to be strong. at the same time in europe and china, we are going to continue our positive performance. we expect europe to be that -- to be down a bit based on the weakening of the sterling because of brexit. david w: i am glad you mentioned 2010 at you are indicating it might be a little bit softer. that is based on your new initiatives. tell us about those plans and what they do to your bottom line. mark: when we look at 2017 we will have another good year at fort. it will be a bit down from last year and the reason is because we are investing in emerging opportunities around autonomous vehicles and mobility, which will open up more growth opportunities for us down the road. we are investing for the medium and long-term and putting in a big -- good year for 2017.
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david: -- david w: you will be dealing with a new president. you mentioned in the second meeting that he had seen you twice in two days. give us a sense as you have dealt with him as president what sort of a person is he going to be? how will it be to do business with him? what do you learn from the meetings? mark: i think the president will be good for business and the economy because he is focusing on it. i think it is very positive that his first couple of meetings and his new administration under his new presidency, he was focusing on manufacturing and automotive and will be very focused on driving policies that will drive -- looking to drive investment and job creation overall in american manufacturing and automotive manufacturing. i think it is positive that he is focused on the economy and he is listening and understanding the suggestions we have to grow
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the economy going forward. grow w: one of the ways to the economy is for you to invest more in plants in the united states. isn't this the worst possible time for ford motor company to be putting forward billions of dollars in new capital investment manufacturing facilities in the united states? mark: our view is that the market here in the u.s. has plateaued, but at a historically high level and when you look at the segmentation in the marketplace -- people moving from cars to trucks and suvs, that plays to our strength. we will do the right thing for the business. earlier this year we announced we will invest another $700 million in the plant in flat rock, we will make sure we are doing the right thing for the business , understanding where we are in the cycle. we do not have plans for any new
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continueut we want to to grow and use the assets we have as best as possible. if we have a good business environment for manufacturing in the u.s., that is one of the factors we look at with investment decisions. fields,that was mark ceo of ford. david: we are waiting president leaders speak with gop in philadelphia. he will be introduced by vice president mike pence. i will bring that to you live us and as it happens. this is bloomberg. ♪
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♪ vonnie: you are watching bloomberg. i am vonnie quinn. mark: i am mark barton and this is your global business reports.
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chief executive tells bloomberg what he is worried about in the year ahead. johnson & johnson making the biggest acquisition ever, buying swiss drugmaker -- a swiss drugmaker for $30 billion. the united nations considered the island state to be part of china, but relations between the two are starting to show signs of strain. droppedor's's profit matching analyst estimates. the financial well-being may be linked to donald trump -- president trump making special interest. chief executive march field says it has been a positive -- mark fields says it has been a positive outlook. mark: in europe and china we will consider -- continue the
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positive performance. we expect europe to be down a bit based on the weakening of the sterling because of brexit. mark: johnson & johnson is making a $30 billion acquisition . they agreed to buy a swiss drugmaker. johnson & johnson will become a leader in medicines treating a rare type of high blood pressure. vonnie: time now for our provideg take were we context on background -- and background on issues of interest. morepresident trump's aggressive stance on china, taiwan is testing beijing's tolerance. >> taiwan has a constitution, and army, and an elected government, yet the united nations does not recognize it. china considers the island one of its provinces. considers the government illegitimate and talk of
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independent deeply hostile. here is the situation. taiwan's first female president provoked an angry response in china by speaking to donald trump by telephone after he was elected. no u.s. leader has talked directly to a taiwan president in almost four decades. the taiwan president says she wants peaceful ties with china. the principal has underpins -- underpinned relations in the past. it is the understanding that both sides belong to china even if they have different ideas for what that means. donald trump says it hinges on a better trade deal with china. president trump: i did not know
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why we have to be bound by a one china policy unless we make a deal with china. >> polls show strong support of maintaining coexistence and little media interest in independence. here is the argument. 23.5 million people have built their economy into a technology and manufacturing powerhouse. average income three times that of china. most best most of apple -- most of apple's iphones are made there. saye many china watchers there is too much at stake for military confrontation, trump's election added a degree of uncertainty to the old assumption that an assertive china aims missiles at taiwan and no peace treaty has been signed in seven decades. for the u.s., some analysts say
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supporting the one china policy allowed it to sell weapons to taiwan and helped deter china from attempting to retake the island by force. vonnie: you can read more about taiwan and all of our takes on the bloomberg. that is your global business report. head to for more stories. ♪
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♪ david: the podium at the loews center city, philadelphia. he is travel to philadelphia for the retreat for gop members. we will bring you coverage of remarks live as soon as they happen here on bloomberg television. david: shares of --vonnie: shares of caterpillar are down as they propose earnings that trail estimates, signaling the decline in energy and mining have yet to bounce back. joining us is the industrial analyst for bloomberg intelligence. will this change now that donald
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trump is the president? >> no, but that is why the stock has moved. it was moving on commodities before the election. if some infrastructure comes through, caterpillar is a major winner, but that will probably not happen until 2018. there were signs and mining as well. the 17 is not going to be a great year, but sort of a bottoming out year. david: speak to the bellwether of thisbellwether-ness company. karen: caterpillar moves on commodities, but also moves when people get excited about the economy because it is the largest machinery company. it runs ahead of actual events and it certainly has now. vonnie: what other companies within the industrial space where the outlook is rosier than the others? karen: anything tied to
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residential construction like the hvac companies. resi or that is tied to commercial construction is doing ok. anything tied to heavy ,ndustries like mining agriculture, commodity related stuff is not doing well. diversifieds are doing well because they have a lot of places to go and not deep cyclical end markets, but people want the cyclical play right now. david: the longtime ceo is leaving and there will be a new ceo. karen: i think people were pleased. some of the problem was dug got hit -- doug got hit with three downturns. he did a lot of acquisitions and acquired a big mining acquisition at the top of the cycle. those things he could be blamed for. onactually did a good job
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one side. he had to whether through four difficult -- he had to weather through four difficult years. vonnie: some prices have been rallying and others have been doing badly, palladium is not so good and copper is tremendous. is that just supply and demand? karen: to some degree, but also anticipation of better economic growth. copper is a very industrial commodity at it tends to rally when people think we will see better economic growth. that is a very big commodity for caterpillar and some other mining guys. david: thanks. it is nice to see you. vonnie: that was karen who covers the industrial for bloomberg intelligence. david: we are waiting for president trump, scheduled to speak at the gop retreat in philadelphia. he arrived at the airport about 15 minutes ago and we will carry his remarks live on bloomberg
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and on the bloomberg as well. covering up, we cover the latest from patriot partners were the founder and ceo -- fraud charges. he will join us -- she will join us to discuss the latest in the case. this is bloomberg. ♪
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david: it's 1 p.m. in new york, 6 p.m. in london and 2:00 a.m. in hong kong. vonnie: welcome to bloomberg markets.
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vonnie: from bloomberg world had quarters in new york, we will take you from san francisco to philadelphia and london in the next hour. we are awaiting president donald trump to speak at the gop retreat in philadelphia at any moment and we will bring you his comments when they happen. technology has a big earnings day for alphabet and intel. we will get a preview of what matters most for investors. and international news, patriarch partners founder will talk about her sec trial verdict and the future of the company. we are halfway into the trading day and it's a very interesting trading day so far. abigail: we are looking at mixed
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trading for the averages in the u.s. this follows the big today rally , the best for the dow since early december which has the doubt well above 20,000 which is that important psychological milestone. and the s&p are trading slow best slightly lower. the s&p 500 intraday chart and we see these have moved up and down. it's a tight range, 1/4 of 1%. of thes some uncertainty digestion over the big move in the last two days and what it could mean going forward. as for some of the sectors and stocks, the s&p 500 materials sector is trading slightly lower. this is one of the best sectors out of the election, up about 12%. even though it's slightly lower, it's trading at record high and dow chemical and sherwin-williams are both trading higher.
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sherwin-williams beat on the top and bottom which is positive in terms of guidance. of the bloomberg dollar, the 10 year yield, the mexican peso gold is a mixed picture but more risk on. we have the bloomberg dollar index trading higher which breaks a decline. the indexes on a pace for his worst year since 2009 but the 10 year yield is trading higher telling us that safe haven bonds are selling off a little bit on mixed stock trading action. the mexican peso is rallying a little bit off of yesterday's drop and gold is trading down for yet another day. david: thank you so much. are awaiting comments from president donald trump from the gop retreat in philadelphia. for what we can expect, let's go rili inn cer philadelphia.
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those stories will be featured as mexico will be a feature in today's conversation. what are we looking for more generally from the president today? kevin: president trump has to get the message across that he is able to work with congress and utilize the republican controlled congress to a comp was his legislative goals. lawmakers on capitol hill, particularly republicans, have downplayed expectations for when we can start to see results in toms of legislative action accommodate the executive orders we have seen, most notably on obamacare. they say that will not happen until the end of february. when you look at this past week and the rocky start in terms of messaging coming from president trump's white house, you have to address the elephant in the room which is that this meeting with max -- with the mexican president is canceled as a
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result of the immigration executive order yesterday. thater or not he addresses and whether this administration continues to address that remains to be seen. david: let me bring in michael mckee. to the relationship of the u.s. with mexico. it's an economic and security role. it's our third biggest trading partner. from mexicods come but with u.s. made parts. borders back across the so there is a close relationship economically between the two countries. there is also a 2000 mile border, our second longest border after canada. mexicans can talk about security and they have been cooperating with us on the fight on drugs and terrorism. if they step back from that, that's a problem. vonnie: let's go to mexico city
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so talk to us about the reaction from the mexican population. we know some of the businessmen have been commenting on twitter but what about the person on the street? >> a lot of people in mexico already were calling on pin inieto to cancel the trip. potential presidential candidates, everyone was clamoring for him to do this. i am sure there is a bit of relief in terms of the fact that he went ahead and did it. i think there is support behind his decision coming from mexico to cancel the visit after what donald trump did yesterday with signing off on the wall. david: on the matter of extreme vetting which may be the centerpiece of this executive action, what is the president expected to sign today? vin: it's going to be a
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repackaging of his campaign rhetoric, designed to allow president trump to say he is fulfilling key campaign promises but it will also -- he will not go into policy specifics. we saw this yesterday in regard to his immigration executive action. ofthe flipside, regardless what he says when he returns to washington later this afternoon to meet with senator orrin hatch before announcing those new executive orders, all of this is being overshadowed by what democrats are already counting on as the political pickup of the cancellation of this meeting. today was supposed to be all with another relationship, theresa may speaking later this afternoon after vice president gop retreatses the and talk about a trade agreement potentially between the u.k. and the u.s. all of that now is being overshadowed, all the new
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executive orders are being overshadowed as a result of the cancellation of the meeting earlier on twitter from the mexican president. follow up one something about the theresa may visit -- she said she hoped she would get along with donald trump as opposites attract but they are not opposites in many other policies, at least on trade. michael: it's hard to say were donald trump is on trade other than he thinks that trade deficit is bad. theresa may does not. they have opposite views of the basic fundamentals on trade. they both seem to prefer bilateral trade agreements to group trade agreements. she has signaled she is going for the hard brexit to get rid of multilateral agreements and make individual trade agreement with countries and that is what she want to come home with politically. donald trump, it does not do anything for him, but it was a
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chance to reaffirm their special relationship. interesting thing about what kevin just said, he talked about democrats helping on this. senator ben cardin has now put out a statement saying that trump is causing serious damage to u.s.-mexico relations. it's going to be a big political he isand you wonder why bothering. in his tweet where he did or did mexican president not to come, he said of mexico is unwilling to pay for the badly needed wall, it would be better to cancel the upcoming meeting. andwall is not badly needed even the wall street journal editorial page which is sympathetic to republicans said that today. if you look at the latest statistics, the pew research center has numbers on illegal immigration and they show a leveling off and a decline in the number of mexicans crossing the border to get into the united states. at this point, there is not a real justification for that. it's hard to understand why he
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wants to pick a fight like this at this time other than perhaps it will help them with his base. vonnie: we have to leave it there. thank you so much. we are awaiting donald trump to speak. he will speak at the gop retreat followed by teresa may and mike pence is due to speak as well. microsoft and intel will report earnings after the bell and what investors can expect from them next. this is bloomberg. ♪
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david: this is bloomberg markets. vonnie: a number of major tech companies will report earnings after the bell, alphabet, microsoft, and intel. from san francisco is cory johnson. let's start with alphabet. something you are ready to pounce on when it comes to earnings? what are you looking for? cory: i will be pouncing on clicks. for all of the excitement about balloonsing cars and ascending up internet signals and undersea cables, google's main business is selling clicks and ads. ist fantastic business governed by two metrics both of which are secret. ads get know how many clicked on for google but they tell us every quarter to many more ads or click -- are clicked on.
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changeve us sequential in the year over year change so that is the most important number in the model. it's how many clicks on ads and how much that is increasing and the second part of that is there is the cost per click and how much revenue they are getting for those ads. we have seen this long-term decline in the cost per click on ads even as we have seen a number of ads rising. some would like the number per click to stop declining. they wanted to add a new inventory and that accelerated the declining cost per click. they decided to silly cheaper ad and they sold so many of them -- they decided to sell cheaper ads and they sold so many of them but investors want to see the value of the ads stopped decreasing. perhaps over time we will see the value of google no longer decline and that could be
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theher tailwind behind fantastic business model of alphabets. as was reported in bloomberg businessweek, we are alphabetre numbers on applying stricter scrutiny to their projects. what does that tell you when you look at company earnings? what they have tried to do is make it clear to investors that there is stuff over there that makes money and there is the main business over here. in terms of scale, it's not like parting the red sea. the business of advertising is so much bigger than the business of those bets. within the business of those google fiberhe business looms large in its bigger than the other pieces particularly on a revenue bases but also in operating. it's something to keep an eye on
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and it's neat stuff but i think you want to keep your eyes on the prize and investors are looking at that. vonnie: tell us what we should expect from intel, better margins? cory: perhaps, the margin picture has not been great. into pcs and pcs are not as bad as it's been in recent years and that has helped them. overall margins have been ok but what we will look for is all of their other businesses, mobile business, internet of things, can they make those profitable? terms of profitability, it has not been as profitable as the server business and the pc business. we will keep an eye on that gross margin number. david: thank you so much. we go to philadelphia libor president trump is speaking at the gop retreat. shaking hands with this baker of the house, paul ryan. the president of the united states -- >> thank you very much, mitch.
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so nice, thank you. [applause] thank you very much. [applause] thank you. thank you. so nice. nice to win, do we agree? it's been a while. it's been a while since we had this position, nice to win and i want to thank everybody in the room, so many friends. i give her a much. sit down, let's enjoy ourselves. it's great to be in philadelphia . i went to school in philadelphia. it is a very special place in our nations history. it is the place where we launched our american independence. the state of pennsylvania is very special to me for lots of reasons. especially from a couple of months ago, remember? [applause] won,ylvania cannot be
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remember? pennsylvania cannot be won, there was no path to victory for trump in pennsylvania except we won. it has been a long time since you guys did this but it was a great victory, a great evening. started in pennsylvania. they all said pennsylvania was the bride that got away, that it that everybody from the republican party that ran in pennsylvania for 38 years thought they won except they never one. but i wasi won, too, afraid to say it, mitch, because it seemed like it was not working out. i said let's see what happens so we love this state. we will see it many times again. now was the dawn of a new era of american independence, a rededication to the idea that
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the people are in charge of their own destiny. i want to thank majority leader mcconnell, a great guy. and speaker paul ryan, very, very special. and he is at writing his heart out. and we will sign this stuff you are writing. you're not wasting your time. [applause] he would write it and send it up and nothing would happen but now it will happen. for the leadership and inviting me here today, thank you very much. thank you leader maccarthy, senator cornyn, congressman sacalise, congresswoman cathy and congressman messer for your leadership as well. it's been terrific. this congress is going to be the busiest congress we have had in , maybe ever,e ever
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think of that. think of everything we can achieve and remember who we must achieve it for. tens ofere now because millions of americans have toced their hopes in us transfer power from washington dc and give it back to the people. [applause] it's so important. to enough all talk, no action, we have to deliver. this is our chance to achieve great and lasting change for our beloved nation. office, i have taken major contractual steps to restore the rule of law and to return power to every day americans. [applause]
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and even though it's only a few days, we have done it in record numbers. we have issued executive orders to build the keystone and dakota pipelines. [applause] and issued a new requirement for american pipelines to be made with american steel and fabricated in the united states. [applause] sitting at my desk and i'm getting ready to sign keystone and the cota and i say where is the pipe coming from. i will not tell you where but you will not be happy. why is it we are building pipelines but not using pipe made in our country? i say let's put that clause in. that will attract a lot of people and we will make that pipe right here in america. [applause]
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if people want to build pipelines on our land, we want the pipe to be manufactured and not only that, manufactured here but you will see a level of quality that you are not going to see when they bring pipe from far distances. in small to bring it chunks and fabricate it on the land. give me a break, we can do better than that and we are going to do it much better and it will end up costing less money, believe me. we have reinstated the mexico city policy, a long-standing policy -- [applause] that's nice. by the way on friday, a lot of
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people will be showing up to washington, right mike? a lot of people. the press never gives them the credit that they deserve. they will have 600,000 people, you will not even read about it. when other people show up, you read big-time about it. right? it's not fair but nothing fair about the media. [laughter] nothing. a long-standing policy to ensure taxpayer dollars do not fund abortion services overseas. [applause] we have issued executive orders to remove wasteful regulations that slow down commerce and delay infrastructure which we desperately need. the very beginning of a massive effort to reduce the crushing regulations on our economy and we are going to reduce
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regulations big-time. [applause] we have also withdrawn from the transpacific partnership paving tradey for new one-on-one deals that protect and defend the american worker and believe me, we will have a lot of trade deals. mitch, don't worry about it. [laughter] they will be one-on-one. they will not be a whole big mashed pot. deals and one on one if that particular country does not treat us fairly, we send them a 30 day termination, a notice of termination. and then they will say please don't do that and we will negotiate a better deal during that 30 days. the other way you cannot get out of it like quicksand. we will have very strong controls over monetary manipulation and evaluation which they did not have in tpp. this will be so much better and we are already on it. i would like to have my commerce
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secretary wilber approved because i hear he did fantastically well but they are not quick with the pen on signing these people because we want to have him approved as soon as possible. mitch says it will be done and it will be. they could move faster on the other side, i will say that. [laughter] they could move faster. [applause] i'm meeting with the prime minister tomorrow as you know, of great britain. i am meeting with her tomorrow and i don't have my commerce secretary and they want to talk trade. i will have to handle it myself. [laughter] [applause] which is ok. we have put in place the first steps in our immigration plan ordering the immediate construction of the border wall, putting an end to catch and release, expediting the removal of criminal -- this is so important to me -- from day one i have said it and i mean the
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immediate removal of criminal aliens, they will be gone fast. [applause] last,nally, at long cracking down on sanctuary cities. [applause] it's time to restore the civil rights of americans to protect their jobs, their hopes, and their dreams for a much better future. congress passed these laws to serve our citizens and it's about time those laws were properly enforced. they are not enforced. [applause] the hour of justice for the american worker has arrived. ,order security is a serious serious national issue and problem. a lack of security poses a substantial threat to the
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sovereignty and safety of the united states of america and its citizens. most illegal immigration is coming from our southern border. i have said many times that the american people will not pay for the wall. and i have made that clear to the government of mexico. deal,has been a terrible a total disaster for the united states from its inception, costing us as much as $60 billion per year with mexico alone in trade deficits. who negotiates these deals? mention millions of jobs and thousands and thousands of factories and plants closing down all over our country. on top of that, our the trillions of dollars the u.s. taxpayers have spent to pay the cost of illegal immigration.
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much of it has then been sent back and much of it goes back to other countries and often times, because they don't respect us, the other countries will not accept the criminals that we send back to them that are illegally in our country. i promise you they will start accepting them again quicker. we are not going to have them any longer. [applause] i will not allow the taxpayers or the citizens of the united of thiso pay the cost defective transaction, nafta. it's one that should have been renegotiated several years ago except that the politicians were too preoccupied to do so. these people are not in that category, you understand, this is a different group. i think. [laughter] to that end, the president of mexico and myself have agreed to cancel our planned meeting scheduled for next week.
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unless mexico is going to treat united states fairly with respect, such a meeting would be fruitless and i want to go a different route. we have no choice. paul ryan and other leaders in congress and i and mike pence who, by the way, how good a choice was vice president mike? [applause] stand up. everybody loves him. [applause] in fact, any time i got myself into a jam early -- i have not been doing the stuff too long -- and he time a got myself into a jam, often times they say on television, yeah, but he picked mike pence. he has to have something going, right? mike really helped. we are working on a tax reform
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bill that will reduce our trade deficits, increase american exports, and will generate revenue from mexico that will pay for the wall if we decide to go that route. it is time that the american fightingd a president as hard for its citizens as other countries do for theirs. that's exactly what i am going to do for you, believe me. [applause] thank you. thank you. it's time that somebody fought for our country and did not let anyone take advantage of us anymore. the world has taken advantage of us for many years but it will not happen anymore. we will have an ambitious legislative agenda as well. our legislative work starts with repealing and replacing obamacare. [applause]
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and saving families from the catastrophic rise in premiums and debilitating loss of choice and just about everything else. remember this for this room in particular, obamacare is a disaster. the democrats are saying they are putting up signs like it's wonderful. it's a disaster. i actually talked with paul in the group about doing nothing wouldo years and the dems come begging to do something because 17 is going to be catastrophic price increases, the deductibles are through the use it, and they would come to us except we have one problem -- theave to take care of american people immediately. we can't wait. [applause] they tell you about obama care, we are taking them out of a big jim. riske putting ourselves at
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to a certain extent because we are taking it off their platter. we have no choice. i think we have no choice, we have to get it going. if we wait two years, it will explode like you have never seen an explosion. nobody will be able to afford it and it's a disaster. wet's politically what should do but we don't want to do that, we want to get something done and get it done right. tom price will do a phenomenal job, by the way. i don't know if she is here but he will do a phenomenal job. [applause] from my first day in office, i signed a executive order to roll back obamacare and pave the way for real reform like health savings accounts that empower individuals to choose, customize plans that are truly right for them. they have so many choices. tom price will soon be leading health and human services. he is a true advocate for patients.
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he will do a phenomenal job. we have no doubt about that. he joins an all-star roster that includes many of your colleagues z, ryan,inke, mick mulvaney, they have had a tough time in congress and the senate but came out very well. mike pompeo, is mike here? he is a phenomenal guy and jeff sessions. [applause] he is a fine person. he was one of my earliest and/or servers. a presidentialed candidate before and he was one of my earliest endorsers respected by everybody and did unbelievable in front of committee. unbelievable. in addition to fixing our health care, we will pursue new trade deals that create higher wages and more opportunities for american workers bringing back those magnificent words -- made in the usa. we is to have that and we don't
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have that anymore. [applause] it's going to be america first again. we will create millions of new, good paying jobs by removing the economic burdens that cripple our ability to compete. at the center of that agenda is bold tax reform that massively lowers taxes for our middle class and for all of american businesses. [applause] also pursue financial reform that will help striving americans get the credit they need to realize their dreams. theblicans have always been party of american industry and the american worker. bymust embrace that heritage rebuilding this country with american goods and american labor. and we have started, believe me. over the last couple of months -- i would like to say i did that as much as anybody or more in terms of getting industry to
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start coming back to our country before he took office. we have a lot of great news with ford and general motors and fiat chrysler and summoned the others. we have a lot of great news -- lockheed is adding additional people. but wing, we have a lot of positive things happening and it will start bursting out and you will see very soon. we want to get our people off of welfare and back to work it's so important. it's out of control. [applause] believe that the world's best country ought to have the world's best infrastructure. deserve andr people it's what we will ensure they get. our infrastructure is in serious trouble. we will build new roads and highways and tunnels and airports and railways across the nation. we will fix our existing product before we build anything brand-new. we have to fix what we have it's a mess. we will fix it first.
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the thing i do best in life is billed. we will fix it first because we have a lot of things that are in bad shape. we will rebuild our military and take care of our great veterans. [applause] thank you. we are working hard with veterans and we will do something very special with veterans. it's time. at the same time, we will unleash the full power of american energy ending the job killing restrictions on shale, oil, natural gas, and clean, beautifulcoal and we will put our coal miners back to work. [applause] thank you.
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we will protect our farmers, our ranchers come our hunters, our anglers and all who enjoy the outdoors. but to be a rich country, we must also be a safe country. right now, too many families do not feel secure. just look at the 30 largest cities. in the last year alone, the murder rate has increased by an estimated 14%. here in philadelphia, the murder rate has been steady. it's been terribly increasing and you look at chicago. what is going on in chicago? i said the other day, what the hell is going on. ? [laughter] a lot of truth to that. that is why we will continue to stand with the incredible men and women of law enforcement. [applause]
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yesterday i had the honor of swearing in general john kelly as our secretary of homeland security. he will be amazing. [applause] tomorrow, i will swear in general james mattis as our new secretary of defense. [applause] these men have devoted their lives to defending america and now i look forward to working with them along with our great new head of the csa. we have so many different people that we are putting in office. i think it's the group of all-stars like nobody has seen before. where is mike pompeo?
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did he ever come here? he's working? he is -- he will be another big star. i have to mention of every single time, he will be great. [applause] with you and congress to keep our country safe from the many threats we face today, that includes protecting americans from radical islamic terrorism. [applause] we also need to keep the ballot box safe from illegal voting. [applause] believe me, you take a look at what is registering. they like to say that trump -- look at what's registering. we are going to protect the integrity of the ballot box and we are going to defend the votes of the american citizen. all of us here today for the same reason to serve the
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citizens of our country. we are not here for ourselves. we are here for them. we are here for the people. we are blessed by divinity and honored by history with the task of preserving this great republic and expanding its blessings to every single american. [applause] thank you. thank you. all of us are joined in this effort, all of us are bound by to give bound by god our full devotion to this country and its people. that obligation forms the moral foundation of our agenda. that agenda includes a lean, efficient government, appointing
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supreme court justices, so important. [applause] who will uphold and defend our constitution, reducing taxation and regulation, fair trade that creates a level playing field as opposed to what we have right now and fostering respect for our country and its flag. we are now only at the beginning of this incredible journey together. i am honored to be your partner in this amazing quest. i am privileged to stand with you shoulder to shoulder as we work every single day to make america great again. andk you, god bless you, god bless america, it's a great honor to be here, thank you very much. [applause] vonnie: listening to president donald trump speak at the gop retreat in philadelphia.
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he mentioned a lot of things. about howy talking the administration will get rid of criminal aliens and crackdown on sanctuary cities. on thet some laughs other side when talking about the confirmation of the cabinet nominees. he said he has to meet with prime and mr. theresa may and did not have his commerce secretary so he will have to do it on his own and he said that was all right. about trade and nafta. he said the president of mexico and himself have agreed, although i'm not sure there was , have talk between them agreed to cancel our planned meeting for next week. he said of mexico is not going to pay for the wall come in the meeting would be fruitless. i want to go a different route. , new trade rules would generate revenue for mexico that would pay for the wall if we decide to go that
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route and he talked about chicago and the formal care act and much more. we will dig into it later on bloomberg markets. for now, let's get to david who is standing by with lynn tilson. >> in 2015, the seer curate he's commission brought charges against her. she helped pioneer distressed debt as a product. she is aained turnaround expert and stated in and out of court that the sec and said it was stacked against her and we expect a verdict from the sec early this year. she joins me now in new york and thank you for coming in. let's get to all of that and a moment. you listened to what the president had to say and you waited patiently. what is your action to what you have seen with the president saying he is done with tpp. does that make business sense to you? proponentlong been a
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of creating jobs in america. i have been vocal about it and it has cut against me in many instances. i believe in the dignity of work above all. i think these trade agreements have been stacked against us especially for small and midsize companies. we have lost 7 million manufacturing jobs in this country since 2000. there are many people who were left behind and that's why trump is president because people got tired of hearing that would eventually trickle down to them. he said the hour of justice for the american worker has arrived. much time are you prepared to and bringim manufacturing back to the u.s. how quickly could that happen? >> i think it can happen rather quickly. i think what he is doing with large companies and inspiring them to build facilities here, we have not done a lot of that
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and there is a whole the world of smart manufacturing. can build our manufacturing plants for today using artificial intelligence and chips.s and we can retool and re-school america for the future. we have lost a lot of jobs to i think weexico and can incentivize people to build here by removing regulations and having industrial policy and i think if we put people back to work in this country, we will bridge the divide between main street and wall street. david: you have a lot of irons in the fire. we are talking about denver and delaware and new york. how do you keep it all straight? how do prioritize what's most important? important thing for me is to focus on the companies i own. i am back from five weeks on the road running my companies. without that, nothing else really matters.
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for me, owning my companies and running my companies and building value and hoping the change in how we do with manufacturing this country will be a big upswing for my companies is the most important thing. i am embroiled in battle and i've a great team of lawyers to get things done. they believe in me and believe in this fight and i think ultimately, i will win all of it because i have true that my side. i think all the good faith i have operated with over the years has made me look weak to some people but i think in an article three court with an article three judge, i will have a chance to have the due process protection and depositions and discovery and prove that truth. most people lose because they give up. most people get tired of the battle and get tired of the legal fees. i have more than 60 companies and almost 100,000 boys and that's why i get out and fight every day and ultimately, i
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believe that i will be vindicated on all fronts with the sec. i think the doj will probably rule in our favor. case collapsed in court. they showed up with three witnesses after interviewing 70. it was ominous seven years they investigated me and even their own witnesses admitted everything had been disclosed to them and i had the ability to amend my contract. it was never a fraud case, it was a contract case. you don't control these funds anymore but you control these companies so how do you navigate that? the fund and they keep forgetting that, more than $125 million of equity in the fund. a&m like to ignore that fact but my rights are there and i will be asserting those rights. i do on the company. i paid for the company's equity. i have paid hundreds of millions
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of taxes for those companies over the years. i have the right to be on the board and control those companies. there are loans on some of those companies to the fund and those loans will get paid back. and and battling back since 2006 -- this is nothing new. they sued me in 2009 for $180 million and i won on every claim back them and i expect to do that again. .his is literally frivolous they sued me in new york for what hyatt already sued them in delaware, to have a declaratory judgment that i own this equity and i am very certain eye on this equity because i would not have paid all the taxes and all of these companies all these years of i did not own these companies. gibson dunn is not a cheap law firm. how much are you spending on that in how long can that continue? >> i have spent a lot of money.
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i will spend a lot more but my companies are worth billions of dollars. in the alternative, i had been willing to give some of that upside to the funds. now they seem to want to fight me for winner takes all. i expect to be able to recover a lot of those legal fees. can you foresee a trip to the supreme court? sure oned to file for this administrative judge case. i do not want anyone else to ever have to go through what i went through. after a seven-year investigation, i was deprived of due process rights, no depositions, almost no discovery and it was a very one-sided battle. luckily, i had the money to hire a team at gibson dunn who did amazing work and to very easily made their case collapse.
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most people don't have that option so i don't only fight for me. i fight for everything who went through that or might have to. there are some cases where they might be in front of administrative judges but not complex judges for lots of money with people's careers on the line. they should not be in a lopsided court. under the administered of course, they ran amok and it needs to be stopped. back to politics, you have a president who says he wants to rip up dodd-frank. are you placing hope that if dodd-frank is uprooted that could change things entirely for you? how much does politics matter to you? >> a lot. for me, drums view toward regulation and the sec will be extremely helpful. if we don't win at the administrative court level, i think we will appeal to the commission.
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they brought these charges across party lines so i think it will be looked at again at the commission level if need be. i don't think he will allow the future of the sec to use these administrative courts the way they have had. as far as manufacturing and creating jobs in america, i feel like everything i have said and written about for the last decade is being trumpeted and i'm glad someone is bringing truth to bear. we did not lose manufacturing in this country over labor costs. we lost manufacturing this country because other countries like china were subsidizing raw materials by 30%. when you have a paper company and china can sell paper in this country at a lower price than you can buy, you have a problem or if you make steel racks and you can bring them in manufactured from china for less than you can buy steel, the reality is that you are not working in free trade. david: what is your message to
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investors? what do you say to them? >> shame on you. even after you sued me for $180 million and lost, i worked to refinance these funds in full and raise all the money and all anddid was push me along dispute mesa you took advantage of my good faith for the last time. i look forward to this winner take all battle. david: nice to speak with you, thank you so much. vonnie: coming up, prime minister theresa may says it's seek aain's interest to positive relationship with president trump and we get a live update for our reporter who traveled with her to philadelphia today. this is bloomberg. ♪
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vonnie: this is bloomberg
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markets. from the report reporter traveling with theresa may. she will meet tomorrow with president trump. we have a report from philadelphia, has anything changed since the meeting today? the most extraordinary thing is we had a chat with the prime minister on the plane over here. we landed about an hour ago and we asked her how you will deal with this president who a lot of people feel worried about and has got a brush reputation. the prime minister is a pastor's daughter and is quite restrained. she gave us a little smile and said have you noticed that sometime opposites attract. it seems that therese may will go full on to try to delay special relationship with donald trump. david: what is the objective here? is it to meet one another and build that relationship or is it
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to make as much progress on this trade deal? is it business or promoting a new personal relationship? >> i think it's both. you will not get a lot of detail .n a trade negotiation that happens at a lower level. what theresa may wants to do is to bring donald trump it to the international community and she is not stepping away from him at all. she is getting as close as she can. arounde on the protests the world, she said he is the u.s. president and that's who they have elected and it's my job to work with him. the u.s. and the u.k. have a shared relationship and shared issues. extent, his certain election took the limelight off of her for a while, right? britain had been holding the record for last years vote with the brexit referendum and that has been taken by america.
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we asked her whether she saw a parallel between brexit and trump? donald trump clearly sees a parallel and she said she does that in the sense of what you have in both countries is working class people who want to be listened to and she said she thought her government's job was to listen to these people as she thought that was donald trump's priority as well. vonnie: thanks so much, he is traveling with primus or theresa may and they are both in philadelphia. we will check back with him a little later. stay tuned to bloomberg markets. you are watching bloomberg tv. ♪
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julie: scarlet: it is -- it is 2:00 in london. reporter: welcome to bloomberg markets.
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scarlet: we are live and bloomberg world headquarters in new york over the next hour covering stories out of detroit, philadelphia, and london. here are the stories we are following. president trump seeks congressional republican retreat while theresa may is set to address the gathering next hour. the president is in dispute with the president of mexico. build onks look to record highs. the dow is expanding its march north of 20,000 with home depot among gainers, but the nasdaq is going back unchanged. in business, verizon is interested in some sort of combination with charter communications. how might a deal in fact that is sector? -- impact the sector? we mentioned how the nasdaq is little changed. a lot of big tech earnings.
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reporter: it is basically unchanged for the u.s. major averages, doubt and s&p 500 and the nasdaq, very small fluctuations. the dow is the only average higher you can see all about 0.1%, carving out another record percent and on pace for another record closed as well. the doubt comes early december 1 -- it is now above 20,000, well above 20,000. all the major averages did put in new record highs today. as for the s&p 500 on the day, not a lot happened. 0.25% a very small range, range. most noticeable is reaction around president trump speaking in philadelphia. there has been remarkable until the, a little bit of a move up, 0.2%.
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that is true when we take a look at the s&p 500 on a daily basis. #btv39, these are the ranges, seven points now, not a lot of action for u.s. stocks, really consolidating the two-day rally. have two earnings movers in here, verizon and qualcomm. qualcomm putting up a first quarter revenue miss, price cuts. bristol-myers smith missed estimates, and that is weighing. verizon trading lower on a wall street journal report that verizon is in discussion to create a combination with charter communications to create what would be the largest cable and telecom company. more details on that possibility to come. and back into the bloomberg, which stocks are at all-time
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highs? are they here to stay or will there be a reversal? this is 5722. it is a very fair chart. in white is the s&p 500. we see the divergence between the s&p 500 and the vix has aren very far as measures complacent. --ht now the urgent be far is the really nothing for investors to worry about, or are stocks set to pull back? matthew: thank you so much. let's check on bloomberg news. emma chandra has more. : president trump wants people to act quickly on the border wall. he spoke at the republican retreat in philadelphia. republicans control both the house and senate in addition to the white house. -- it is the first time
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since all of 2006. theresa may is also at that retreat. she is making a two-day trip to the united states. she will become the first foreign leader to meet donald trump. the two will be at the white house tomorrow. the new brexit secretary says there will be no delay in producing a so-called white paper on theresa may's negotiating plans. >> in terms of timing, the prime minister in due course is being as expeditious as we can be. she knows of these things have a procedure, text time to do, but we will do it. emma: he made the comments to the british parliament. president trump's plan for investigating what he considers to be voter fraud in the presidential election. that is according to sean spicer. he said the president is still working out details with his senior team and exciting --
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assigning the executive action at 4:30 today. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra. oliver: getting back to philadelphia, president shrimp -- president trump urged people to move fast on the agenda. president trump: this congress is going to be the busiest congress we have had in decades maybe ever, think of that. and think of everything we can who we mustremember achieve it for. oliver: for more on trump's remarks, we get a reporter from that retreat. heaven, tell us what is going on here. republicans trying to light a
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fire under him, will it work? reporter: they have a lot of work to do with president trump taking a series of executive actions on everything from the transpacific partnership to environment regulations with pipelines, and the to do list for congress is long. the lawmakers i'm speaking with on capitol hill tell me they are reality in terms of clockwork in congress, and this takes longer than president trump would like to see. the bottom line is in terms of legislative action, we will not see any laws passed until the end of february at the earliest. it will take things off with -- it will kick things off with obamacare. a lot of conversations taking place in terms of which agenda items to prioritize and how to map out that legislative calendar which is filling out rather quickly. scarlet: congress has its own party which would be obamacare, and the president has his
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hierarchies, nafta and mexico among them. what kind of movement is to required to take it up? you heard house speaker paul ryan saying tax reform was the number two agenda item on his priorities as getting policy, repealing and replacing key parts of the affordable care act. today was supposed to be setting a two dude list and crafting -- to do list. what it turned into has been largely overshadowed by the mexican president withdrawing a meeting next week of course with president trump. that takes away from president trump's remarks earlier, clearly off centering the removal of this meeting. he attacked mexico for nafta, sending a message that if they want to cancel on the meeting,
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nafta, looks like it is headed for renegotiation. oliver: i want to get the sense from you how republican lawmakers feel, you are among them, with trump. he is sticking by the campaign and along the campaign with plenty of republicans who disagree. do they feel they will get on board? they will get under him and get things done, or is there resistance? kevin: that is a great point. there was skepticism from several top republicans to say the least about his political style, and that same style is continuing with trump and the white house. candidly all of these lawmakers are asked about the tweets and offhanded remarks that president trump continues to make, and they try to swap them down to a large extent saying they will continue to execute the policy prescriptions that they feel was a large reason for why they were
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able to control the republican majority. aaron philadelphia, really the central focus has been on crafting an agenda item and a legislative calendar. they feel confident they can get that done. scarlet: you mentioned theresa may will be addressing the republicans said shortly. why is she doing it in this form ? why not go to washington and address congress in both parties? kevin: she will be there, she will be at the white house tomorrow. president trump making light of it that he is having to negotiate with the u.k. in terms of a trade agreement. i think a lot of republicans are looking at what happened across the pond with the u.k. and drawing similarities with the election of president trump. so i can tell you that privately theresa may will be meeting with members of republican leadership and then meeting to brief them
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on the developments of brexit. clearly a lot of developments happening today in the u.k. with brexit. she will be briefing them on what that all means. the development across the pond influencing perhaps the leverage that republican officials including the trump administration have in negotiating a deal with the u.k. in terms of trade agreement. that was before the withdrawal of the mexican meeting, so a lot of moving parts today. quite a busy day in terms of trade with the city of brotherly love. oliver: kevin of bloomberg news reporting, as republican lawmakers convene, thank you. scarlet: the feud gets deeper. we go live to mexico city next. ♪
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♪ joe: scarlet: this is bloomberg markets. oliver: mexico's president enrique pena netto has canceled -- nieto has canceled a meeting with president trump. big development here today. they planned it meet, trump says don't come if you are not planning on paying for the wall. not crazy about paying for the wall, did you have any choice in canceling the meeting? reporter: there is a lot of question about how the order of this transpired. we are hearing reports yesterday the mexican administration and pinioned attempt -- and yet you don't -- the mexican president
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wanted to construct -- it is not entirely clear. mexico really didn't have any other choice here. a lot of people are very happy about this decision. the police -- collective decision is we are finally standing up to trump after a year and a half of insults and vitriol aimed at mexicans and the mexican economy. scarlet: looks like he was being bullied by then candidate trump. give us a big drop -- backdrop. ratings have's been suffering. canceling this, it is popular with his constituents. reporter: it is true. people, rival and supportive mexican officials have been calling for this.
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his popularity was at a record low for any modern mexican president, and to show this backbone and that he is standing up to the u.s. and a much larger neighbor is something that plays well at home. it is a very politically popular move, one that people have been calling for since august when president and you and you don't ieto invited pena n him. oliver: doesn't look like the are happy about this. what is the outlook for an meeting actually happening? reporter: the mexicans have indicated they are still open to it. we have seen this statement from sean spicer in the white house. you know the feeling is this will happen at some point. there were numerous times between president obama and thendent nieto and obviously this is something that
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was contemplated for the very first stages of the trump presidency, now it is an open all right,iver: thank you so much rejoining. scarlet: turner communications, will that help verizon pay for at&t? ♪
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♪ scarlet: charter communications rising on reports verizon will have a possible combination with the cable company. for more on this, let's go to cory johnson and carol massar. >> thank you so much. welcome everybody at bloomberg tv. let's bring in matt canter meant. he looks at tech among a group of analysts.
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verizon now going after charter communications? all of these stocks are moving on the news as we expected, what is going on? you are seeing a lot of technology factors converging in this market, and that will drive people to consider their options. at&t said it best when they announced the acquisition of time warner, the future is mobile and the future is video. people are placing bets on how to leverage growth. at&t is buying one of the biggest cable companies. verizon bought yahoo!. they are in the process of buying yahoo!. they are try to convert -- compete with facebook and google. if they go after charter, they are going after the at&t plan of getting in scale with contact companies and leverage of that to get good costs and a
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differentiated product like directv now which at&t just launched. do these things work together, or is this diversifying revenues, but this notion of at&t and dish and time warner, the notion of yahoo! content and even cable content? it is really just about using their balance sheet to have a different source of revenue that is not dependent on connectivity? matt: it goes back to the question in telecom, are they just a dumb pipe? what we have seen for years is that has matured rapidly. the previous coverage is gone. t-mobile is competing nationally now, sprint is catching up very quickly. now the network premium they used to get has basically eroded.
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in with growth declining their main profit driver, they are trying to denver's find you growth avenues grow the top and bottom line and more importantly keep their task -- cash flow going. i want to follow up on corey say these can get through -- can they get through? let's say verizon five yahoo! and charter communications, is the regulatory environment friendly to this? and will yahoo! happen with rise in? matt: it is tough to say because we have a new regime. we don't know what they will look like, but based on president, the -- presidential t, it is more on the video side. we have time warner which is now spectrum charter competing with files -- fios, so they don't have too much overlap.
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on the broadband side they have a lot of subscribers. that can be an issue. bna people who look at the perspective say this could resonate politically in terms of where candidates are in the different states, that it could be more friendly. matt: definitely a different political climate, different scc. chairman wheeler is out, chairman five is in. he is more pride in his -- proindustry, more republican. so he will wind back a lot of regulations chairman wheeler put in place. we will see if he will set the deals. carol: is yahoo!.? matt: it seems like verizon wanted to get this done. is tough to read into that, but you would not be doing the financing if you want to did not get the deals done. they might push the discount or more concessions, but i think they know they need the skills
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with google and facebook. they want digital ads and they need the scale. cory: with at&t, it seems like verizon's and a strong position to negotiate this deal. it comes down to the details of the agreement, but they do have the right to renegotiate it. our analyst has done a great job looking at this. a goodks they do have case to renegotiate. let's talk about the stock, down 8%, a lot of stocks moving on this including dish. investors thought verizon would go to buy dish. matt: dish owns a lot of wireless spectrum, one of the most valuable assets in telecom. it is like fiber but it is radio-based, carries signal to
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your smartphone. verizon has the least amount of spectrum per subscriber among the wireless carriers. their network will be the most strange if data growth continues up the clip it has been going, and it should. so verizon needs spectrum. dish has a lot of it. the verizon ceo says he likes this, some people thought they could do something there. dish has not articulated a strategy. they have a ticking clock if they do not build a network or sell it, they will lose it for nothing. they do have to come up with a strategy soon, and if verizon is sending -- spending a lot of money, they may not have firepower. carol: this is an early stages? matt: very early. carol: thank you for walking through that with us. our impost group of analysts, back to you. scarlet: thank you.
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easy catch more of the radio interviews on sirius xm, and bbr go. oliver: time for a look at the business stories. oxford executives are accused of spearheading a bribery scheme. they were involved in paying tens of millions of dollars to governments across africa to win business. there is a statement last year in which the plant -- they pled guilty agreeing to pay $450 million. already reeling from a moderate -- money laundering crisis, alibaba groups and financial agreed to acquire muddled -- rival money gram. money gram and western union have been the players in the industry but have been battling competition from digital alternatives. western union has lost $1.5 billion in market value since january 6.
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ofrman williams $9.3 billion the all-star on track to close within three months. the acquisition will be the makert pacemaker -- paint been sales. people thought this could be stopped. that is your business flash update. scarlet: we have commodities close, oil rallying today. we will look at that and metals. you have got nymex crude up 1.2%. ♪
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i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ♪ scarlet: from bloomberg world headquarters, this is bloomberg markets. audited markets are closing in new york. let's get a look on the movers. we start with oil. wti crude is gaining hitting a
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two-week high from optimism opec and other oil producing nations will stick to their promises to cut production. ,ver in metal, gold is falling 0.75%. most of this year, gold had been doing well in the lead up to the year, -- the lunar new but now it is coming off. and demand is outstripping supply and commodities even with record u.s. production. you can see this is off better than 4%. it is down, sorry. that was a reversal. you will see farm incomes in the united states have been declining and continue to decline in 2017. they have done it for three straight years, total $57 billion last year down from 20 in 2013.- $120 billion
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trade deals could further damage this, or he took his time in naming and agricultural territory in contrast to the other positions. that raised concerns as well. oliver: let's get back to politics. the u.k. prime minister theresa may visit president trump at the white house tomorrow. the protectionism is a part of their respective campaigns of power, but the messages cannot be more different. that observation was made by the communications chairman. roberts has a new book out of leadership in a crazy world. we have the global strategist bob on bloomberg surveillance this morning. tom keene started by asking what he thinks of president trump. doing, oneident is of the things he is doing right is you starting the revolution by changing the language, and that is how revolutions start.
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if you can change language, you change everything. you make america great again, it will go down in history as one of the most involving, impactful events ever known. m: you begin your career with gillette razor blades, then procter & gamble and pepsi. none of that involved anger. i would suggest every ceo you worked with, there was no anger involved. we have an angry president. have you constructively -- how do you effectively manage the anger message from president trump? kevin: it is about moving from getting things done to making things happen. he is playing to an audience who are also angry, so there is a lot of blue-collar guys going, no one is listening to us, no one has been talking to us. tom: this is critical. mr. roberts blew up -- grew up a
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blue-collar guy. >> but what about the remarks we have had over the last couple of months? kevin: i don't think he is good for gender diversity. many blue-collar workers are going, we can love -- live with that as long as he sticks to the main method, we will create jobs and make america great again. many americans not engaged in philosophical debates on other stuff are going, right, this is the first person that is talking to me. mrs. clinton talked about a lot of stuff stronger together that didn't matter to me. but making america great again matters. i understand it, it is nostalgic, helpful. it involves change. >> is a great slogan as long as it makes it great again. he be able to unify? can america be great if it has a divided population? kevin: i think he will start by
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doing what he said he would do and involved and engaged the people on the bus already. you get on the bus, you get on the program would you get off the bus. he will start by getting the bus moving. he has created leaders all around it. he has started to get things done, to make things happen. let's see how he goes emotionally over the next hundred days. >> when you look at leadership, what are the attributes of a leader? is the execution or big words? kevin: he doesn't use a lot of big words. he talks like talking to three-year-old. we will make america great again. we will build a wall, drain the swamp, crooked hillary, lying ted. he is using words that everybody can relate to and understand. the first thing he has done is change from political philosophical language to action
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language that people can get involved in. he is involving some great communications a bunch of people. tom: you get dollar dynamics in the world, what about a stronger dollar? >> assuming policy moves forward, it is a four in five chance. tangentiallyappen to what is going on in your word , leadership. how do you addressed to a guy -- i just to a guy with the message changes? in all the work we have done, we talk about the i words and the we words. he is pretty impactful, he has got loads of ideas. he has got great intuition and instinct. he booked the whole system. he surprised everybody, cap
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going, and he understands the word in enthusiasm, emotion, energy, edge. you have got to rank this guy 10 out of 10, very emotional, full of enthusiasm for a 70-year-old guy. .nergy through the roof he will cope. we will have to learn to cope with hand. that was red rose consulting founder alongside robert of amherst pierpont. scarlet: emma chandra has more from the newsroom. emma: president trump says his election is a new year in american independence. he spoke in philadelphia where gop lawmakers are gathered for their annual retreat, saying it is the time to deliver. president trump: this congress is going to be the busiest congress we have had in decades, maybe ever. maybe ever, think of that. and think of everything we can achieve and remember who we must
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achieve it for. emma: the president also promised to have strong control. he says his administration will cut u.s. regulations big time. expects thes he administration to cut the environmental protection agency budget. he predicts the president will cut $1 billion from the epa's $8 billion annual budget. he would like to see significant reductions to the workforce of about 15,000 employees. the border patrol team is beefing up. mr. parker comes a day after president trump announced plans to build a wall at the mexican border. genetic engineers have successfully grown an embryo
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that is part snake part human. part pig, part human. the stem cells had developed into precursors of various human tissue. the hybrid was inefficient him up but a significant step to development of animal embryos with functioning human organs. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra, this is bloomberg. scarlet: i am trying to get my head around that story. johnson & johnson reaches a deal to buy at the till and company. would it work with the trump administration? and a change ♪. ♪
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♪ kevin: this is bloomberg markets. scarlet: a major deal in the pharmaceutical industry, johnson & johnson winning over this place in switzerland for $30 billion. we are joined by global executive jeff mccracken. talk to us about the strategy here. j&j was not the first bidder for this. jeff: i think they were of late, but then their deal fell apart. going back a few months on thanksgiving of all days, those two were in talks, then they confirmed it. two weeks later, the deal fell apart. showed up, andfe
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they tried to negotiate a deal that would have contingent payment tied to actelion drugs. and then j&j come back to the table. what is really amazing is the price. i was looking at actelion stock. they were trading at $120 a share. now it is $280 a share. that is incredible. they bombed near the end of the year two $280. so they are quite happy today. jeff: i am looking at the shares -- emma: i'm looking at the shares right here. $68 is a massive premium. am i on the right model? think they jumped in late october, the $140 or something a share. .o they are close to doubling the strategy and industrial
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logic is they want to get into this kind of rare disease, rare illnesses, if you will. it is a blood pressure, rare form of blood pressure at actelion among other things that they treat. so with all this money, they can take it into a broader, more consumers will be impacted, or they can find ways to spread it to more consumers. scarlet: they didn't really have any options in becoming targets, if they want to go into this field. nice thing isr there were not a lot of competitors. he did not have to worry about pfizer or merck. j&j, one of the great things is their investment grade rating is about as high as against. it is the highest that s&p and moody's about to any company anywhere in the world. talk about's verizon. we heard from bloomberg intelligence on the radio simulcast about the deal.
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from a reporting standpoint, what is your team looking at, trying to determine the next step? jeff: i am more skeptical. j&j and actelion have announced the deal is done, but what happened here was ceo of verizon put a call into greg buffet. he works with malone of charter. but there are no conversations going on from verizon and charter. scarlet: it is very roundabout. jeff: and the people that run charter do not want to sell. does that mean the people who own them want to hold them or sell their stake. i think they will struggle if your verizon to come up with a premium that they would want. they are trading in the $250 range or so. they will want $400 or more. in charter the next $500 a share in the next few years or you will have a skeptical audience to sell this company. $100 billion to steal a verizon was going to do it. scarlet: especially if verizon
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had to take on debt to do so. jeff: when you compare verizon and at&t, at&t has done bigger deal with time warner, whereas verizon has got aol and yahoo! which are smaller. the biggest was that $130 billion deal. this is what hundred million dollars if they go after charter. -- $100 million if they go after charter. oliver: this is lower than the past couple of years, but seems the case is not terrible. jeff: it is ok. it will take about six months ceos and their bankers and the board and m&a lawyers to get a sense of what this administration will run like, what will be predictable, how is the regulatory scrutiny. what they will keep an eye on is at&t and time warner. trump that he would block that. we are not sure now, but if it gets through, it will show, he will let these big deals go.
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i would not be surprised if the second half of this year, you see a lot of really big $10 billion or more deals come down the pike. scarlet: that is an idea of what comes next. jeff: you have sprint and t-mobile which might try to come back. .carlet: we will watch for that thank you so much. bloomberg executive editor of global deals. oliver: abigail has the report. reporter: today we are looking at the metals and mining etf, now down today's in a row. we see it down more than 2%, the worst two-day slide in more than two weeks. not this very surprising, we have this going down with gold. gold is down 0.3% -- 0.75%. this is currently weighing on 3.5%g, and grants now down
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. and relative to that, they have another thing going on which is they may have to stop mining in indonesia if the government does not allow them to export. relative to gold, we are seeing the havens that lost more recently. haveg a look at 5725, we yellow which is gold, white is the 10 year yield since the election, and most of these have sold off. we did see a bit of reversal from the fed back into the middle of december, but just over the last few days we see the yield of a 10 year trading higher and gold trading lower. some people are not seeking haven assets right now. and one sector that is doing well is steelmakers after president trump did say in philadelphia they are planning on moving forward about the keystone and decode access pipeline and the idea that american pipes will be used, steel dynamics and nucor trading
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nicely higher. oliver: thank you. scarlet: it is a time for the bloomberg business flash. lyft plans to cut prices by 1% to contract more customers. it will increase cities from 200 to 300 by the end of the year. uber arc making money much. -- are making much money. the biggest division here, and the recent engine of growth grew at the soloist -- slowest in years. they saw a slow start to 2017 because of the market conditions which made the end of the year challenging. black filler group said profit soared. earnings said the biggest private equity firm or $800 million up from $435 million end
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of year earlier. that is your business flash update. oliver: the latest on president trump's executive order including one today on voter fraud allegations. ♪
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♪ this is bloomberg markets. scarlet: president trump said he ietopresident pena n mutually agreed not to meet on next week, and they will not speak about the wall. trump also said to keep the ballot box safe from illegal voting. joining us with more is shannon. it is on that last point that i want to begin because the president is planning an executive action on voter fraud. what has beenis reported. i will caution everybody this is
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executive actions being made at the last minute. sometimes they change. the keystone pipeline provision put in about shale coming from the u.s. was something he thought of the night before. they were not sure they could get it in. there have been reports and assumptions there may be executive action on the voter fraud. don't hold me to it, because things are changing fast around here. oliver: we will hit you with a barrage of topics in the past 24 hours. one report came out, some news media had seen drafts of basically legislation orders that would basically keep middle eastern immigration, sort of the promise trump campaigned on, now a reality. what do you know about that were the restrictions they might impose on immigrants from war-torn countries? shannon: nothing official yet.
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there is a lot of ideas going around, talk going on right around now. i get the sense that maybe the president isn't even exactly sure where he will come down on these issues. i feel like until pan is on paper, we don't know what -- pen is on paper, we don't know what will be the final. scarlet: you are looking at a live shot of his plane set to land at airfares -- andrews air force base. can you give us an update on what vice president mike pence have been saying? he is trying to push ahead the legislative agenda. shannon: he just spoke a few minutes ago following the gop retreat, laying out what the administration wants to see on congress' agenda obamacare repeal and replace. it is still in there. ,here has been aggressive talk
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push back about how far the republicans want to go with repealing obamacare. he did say he wanted a repeal to be done simultaneously and he plans to replace that, something we assume at this point that wasn't necessarily clear. he brought up supreme court justices, and that the president would appoint a certain constitutionalist. the president said earlier he expects to make a decision later next week, maybe thursday, we might get a nomination from the supreme court. that is probably going to be a battle with democrats in congress who do have the veto power unless the rule has changed. there have been a lot of questions on whether trump will pick someone who is more moderate to get democratic votes on board, but you know that is obviously a priority for the republicans is getting a supreme court in their considering the vacancy for months and months now because of obama's appointee never getting infirmed.
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oliver: we are watching the plane landing. ,oming back from philadelphia scheduled to talk with theresa may tomorrow. here is one other thing here. you look at what trump has talked about, he also talked about enforcement of immigration, he also talked about going into cities to make sure that cities are operating with what he views as immigration goals and enforcing immigration. i would be curious to get some color on whether there is intention to move on that. ending sanctuary cities is definitely a priority. that was part of the executive order signed yesterday. new york city, less angeles, other cities, they are pushing back. they will do what they can to protect people who are not in cities with proper documentation who are law abiding citizens.
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trump said really his main priority are people who are here illegally that have a criminal record. what defines a criminal record whether it is traffic violations or drug offenses, but he really want to go after people who are not doing good here. so that seems to be a priority is the immigrants here, who are criminals. scarlet: thank you. hour, ron johnson of wisconsin joins us from the gop retreat in philadelphia. we get his take. oliver: we will look at france and the impact on brexit. ♪
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>> 12:00 p.m. in san francisco, 8:00 p.m. in london. i'm oliver renick. scarlet: i'm scarlet fu. ♪
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oliver: we are live from bloomberg world headquarters in new york in the next hour plus, covering stories from philadelphia, london, and paris. here are the top stories around the world. tough timeng a today. health care, technology, utilities, those are the there's as the smb continues to fluctuate ahead of the close. british prime mr. theresa may is -- congressional republicans ahead of their retreat in philadelphia. and, how the french are preparing for brexit here we will talk with french governor who is leading to protect the economy cap u.k. leaves the union. one hour away from the close of trading. fluctuating so? >> yes. action. not a lot of
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salop the most, .2% fee or all of us after the best two-day rally since the beginning of december. one that put down well above 20,000, that important psychological milestone. we are looking at a little reader from the rally. for the sound the day, it has mainly been -- mainly been higher. again, more than 100 points above the debt 1000. pretty impressive to see that followthrough from the buyers and the bulls. as for what is helping the dow, we looking at a number of stocks. dowpoint stocks for the really being helped by dow chemical they beat the earnings estimate by 13%, 90 nine cents per share can they beat revenue by 6%. dupont bringing the dow up. 16 andy since december
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boeing is trading higher once again after earnings beat estimates today. whether or not it can last, we have a great chart that suggest some that from some degree are interesting. in blue, we have the dow jones industrial average. in white, the dow etf is rising even as the dow carves out 20,000. a very interesting technical conference. once he will -- one signal he will watch, we will watch what he is saying on this. some with sauce, slipping a little bit here, but moments ago the 10 year yield has been dropping down. negatives telling us bonds were rallying but basically even, given up a lot of games.
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this may be the biggest market move that president trump has right around even, the safety of bonds. scarlet: little changed on the day. abigail doolittle with the market. let's get back to politics. in philadelphia, earlier, the same lawmakers heard from president trump. at the retreat with special guest ron johnson. >> we are joined by senator ron johnson. thank you for joining us here we know you do not have a lot of time. you have got to get back there and listen to theresa may. what are you hoping to hear? i hope the prime minister will reaffirm the special relationship dedication to really negotiate the bilateral trade agreement. free and fair trade as i believe the president is. it is a special relationship and
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i want to make sure that is affirmed. >> do you think the u.s. has any bit of leverage? >> britain will have to renegotiate their relationships with all the european countries. i think the greatest leverage we have is the president knows how to negotiate a good deal. trade, assist on fair will the trade negotiator. it is not a bad thing. i'm for free trade. i think america has repeatedly been taking advantage of some of these deals. country by country, i think that is what president trump is talking about. you negotiate these deals country by country, you can ensure they are fair in the interests of both countries. >> let's talk about another trade deal garnering a lot of headlines, with the u.s. and mexico.
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afternoon,the mexican president is withdrawing from attending a meeting and president trump said he is also canceling it. are you concerned about negotiation tactics? is starting the negotiation from a position of strength. >> if the mexican president is canceling -- >> again, a long time to go through this process. it is incredible support and for our national security and border security that we have a good partnership with mexico, that they step up the plate, start securing their southern border. we do need cooperation. i would say this is just the opening bid. >> is that what we are really seeing, the beginning of the renegotiation back-and-forth? >> i think it is the security of our self west order.
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the border in dangers america on a number of fronts. safety.ealth and we have to secure the border. and theyr in israel constructed in two years 150 for a reallyillion good fence, one that really works. we may produce different types birdss, but we have a next in building things as bird in building things as president and negotiating contracts. more cost effectively than we would have under a previous administration. the end ofmatter at the day if mesko does not pay for the wall? as a republican? to secure the there are ways we could pay for the law. in terms of negotiating the
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final deal. >> what you are saying is it is most important -- >> to build the wall. we have to secure the border. >> quickly, there is back-and-forth and the trump administration is saying the state department has to top officials to leave the state department and there are other reports out suggesting there is some sort of mass exodus on the state department. do you have concerns? session likely one thing i asterisk -- rex tillerson is how department state that in many respects is hostile to your views? you have a permanent bureaucracy agencies for one way you manage it is to replace people. all?u are not concerned at >> i have got a great deal of
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respect for people who enter, my when i do business with foreign countries and first-class individuals, but no, you talk about hierarchies and the state department, i think we should of people who support the administration's viewpoint. >> i know you have to get back in there but there are talks that one of the first year items will be the regulatory policies with dodd-frank. the senate, the counter is a little more full. priority is taking a look again at dodd-frank? >> to me, the top priority is getting the economy growing. -- number one imperative is we have a massive amount of regulation. it is one of the reasons wages have stagnated and the economy is not realizing it will potential.
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it is a top priority. we will use executive orders and try to override bad regulation with better regulation. enjoy your day. kevin.: thank you, we will bring you live coverage of treason a's speech at the bottom of the hour. oliver: coming up, fresh is -- france is trying to minimize the impact. we will speak with an official in charge of the effort. that is coming up. this is bloomberg. ♪
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oliver: a timeout for a look at
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some of the biggest business stories in the news right now. fell thenion shares most in six months after olive up a's group agreed to acquire the rival for $82 million. they have long been the dominant players in the industry but have been battling increasing competition and cheaper digital alternatives. 1.5 ninenion has lost in market value since january 5. --9.3 billion purpose purchase is on track to close within three months. the acquisition at $113 per share positions the company as the world's biggest haymaker. concerned the competition issues would stop the transaction. companies that we did our last year discouraging climate for the initial public offering are wasting no time this year on the heels of a rally and act it is, this month, as employees are raising more than 3.4 billion
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dollars according to data compiled by bloomberg. contrast with last year when the first ipl did not even happen until february. that is your bloomberg business flash update. scarlet: we are waiting remarks at the gop leadership retreat in philadelphia. she has begun pushing the bill at home in parliament to get the brexit process started. for more, let's go to david who is joined by a point man on brexit. david: he is the point man. thank you for being here. can explain by telling us what you're doing in new york. >> after the referendum of u.k. for the brexit, they asked about making some analogies about
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brexit and what would be possible strategies and seeing which way we could have succeeded in the deployment of the strategy. i was thinking it would be impossible for the u.k. exiting the single market in front by the british prime minister. not politically possible for the u.k.. firms workingal london and all over europe, but have to relocate but some activities. londonnow i'm here to discuss e financial institutions what is showtrategy, and try to harris will be an interesting far from london but
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still having the whole range of . invidious >> reported barclays will move from london to dublin. one of the cities against him you are heading. what are you telling the is about paris? we need toexample, see how they organize themselves. they will certainly make a number of things in dublin, as we said. i asked if the more difficult thing is paris. more complex than it looks. major arguments are probably that harris is normally a big city compared to london and europe.
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all other places are small cities. it is easy to attract staff. there is a pool of talent. tens of thousands of french working in london. it means the education system is providing people able and willing to work in the industry. >> is the tax environment -- you think there has to be a reevaluation? >> yes, it is something we are looking at. things studied, for instance, people coming to .rance from abroad very comparable to what exists back, it hasming
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been enhanced and is quite attractive and the most attractive in europe. there is also a vote by parliament to cut the corporate tax rate. all of the things that need to be done comparable we be done after the elections now. are working on that and other issues in the labor market, for instance here at >> focus on what it means throughout brexit and how that is playing out in the british economy, how is it playing out in this time of uncertainty, bank of england saying it could be worse for europe than it could be for the u.k.? >> we do not believe that all it could be a problem for the european economy, a change in the way the financial ifustry is organized,
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instantly london would disappear, it might the a problem. for france, because we have strong actors, not only french actors, i think it is no problem for the financing of the economy. it is not a structural issue. the way we organize 25 years ago, much stronger financial in weis, the places, it means can reveal something in a couple of years as strong and efficient as today. >> the issue has been important to you. when do you think we will get that?y on do you have any sense of when the timetable will be? taken decisions will be
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with some time to comply to that. the issue is really for the eurozone and the euros -- european union, a matter for financial stability. we had in 2011, at a time where the mandates, admit of the in london,orities, not aligning with the interests of the eurozone, decisions could be taken that word first for the euro countries. this is why the german government, the commission, the european central bank, a strong stance in principle, we had to accept that the rule was things can take place anywhere. we are seeing things like the
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mitigate helps to somewhat the financial stability. it does not mean it has to be done in the eurozone, but of 10% is done in london, it is not a big issue. central bank and market. >> thank you. scarlet, over to you. scarlet: david gura with his special guest. still ahead, has the trump trade gotten way ahead of itself? this is bloomberg. >> thank you. scarlet, over to you. ♪
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oliver: this is bloomberg markets. scarlet: it is time now for option insights.
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abigail: joining me for today's optionsinsight is strategist at delta derivative joining me from chicago. thank you. . i know you think the stocks have gone a little too far too fast? >> yes, a little. i think dow 20,000 certainly complacency reigns supreme. the vix trading at the lowest level in over 10 years, the lowest levels that we have not seen in a long time. staff at the highest multiples. the combination usually portends to at least a consolidation it's not a pullback over the next several months. know there is one metric you look at, correct me if i'm wrong. if that is the metric, what does it tell you? >> it hits on what we were just talking about, we are taking the
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stocks, in essex giving you an insurance with stocks at a 25 currency, which is in the upper three percentile, and that just means if you're looking to ensure stocks, a great time to do it here from a contrary in perspective, it may be a great a short >> i will take the other side and point out earnings season. stocks trade at the corporate profit outlook. it looks solid now. stocks willu think drop in earnings and profits are decent. >> earnings better common good. we have had six straight quarters of earnings recession. had pe expanded so earnings better come in really good to
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justify where we are at your. if they miss at all, i think we will have a pullback of disappointment. >> it sounds like you think things have gone too far too fast. i know you are putting your is.y where your mouth can you take us through that? glass the 229, take about $1.5 death $1.8. -- about $1.8. these are trading under the implied volatility. the sad short-term volatility absolutely, which means they will start to move big. maybe stocks will go down especially given where we are at following a 10% rally.
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>> great stuff. back to you. arelet: coming up, we waiting for theresa may's speech to congressional republicans. that occurring in sold off at the republican retreat. we will bring it to you live when it begins. looking at the dow building on gains yesterday, 100 points above the s&p 500 pulling back a little bit, little changed. from new york, this is bloomberg. ♪
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>> president trump says he has singled out who he will pick. esther trump spoke in an interview with fox news.
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trump: i have made my decision, in my mind, pretty much, yes. i think this will be a great choice. >> the president said he will reveal his in court nominee next week. he begins his time with a , 36% of people proving him while 43 -- 44% disapprove. president obama scored a positive 59% approval in his first post back in 2009. president reagan obama -- once considered -- once confirmed by the senate, rex tillerson will have some jobs to fill, a way to top -- top u.s. staff have resigned as the trump administration starts control of bureaucracy.


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