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tv   Bloomberg Markets Americas  Bloomberg  February 13, 2017 12:00pm-3:31pm EST

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vonnie: from bloomberg world headquarters in new york, we will take you from washington, d.c., to san francisco in the next hour. here are the top stories that we are watching. in markets, fresh records for u.s. stocks. the dow s&p 500 and nasdaq off hitting all-time highs. industrials on materials leading gains. meanwhile, apple is also closing in on a high. in politics, the canadian prime minister meets president donald trump today. trade, immigration, and women's issues. we are also expecting a news comfort that 2:00 p.m. eastern. we will bring you that life as it begins. fed chair janet yellen's committee of lawmakers begins tomorrow. the first such performance since donald trump became u.s. president to we are watching for any hints about the fed march meeting.
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tradingalfway into the day this monday. julie hyman joins me now with the latest. julie: the s&p is up for a fifth straight session. the longest streak we had since early december as the reflation trade appears to be back. now adding to the three major 2000, it the russell is now reaching records concurrently with the major averages. it had been faltering a little bit as we have seen a pickup in large-cap stocks. moves are still relatively small, incrementally on a daily basis. we have got to come back to g# btv5561. the closing of the s&p 500 it we have the fifth straight daily game but still well below the 1% mark. we are now looking at session 44 streak that we have had a move of less than 1%. getting back to today and what is on the move, the reflation
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trade appears to be back in effect. that means selling for treasuries and buying for banks. if you look at the 10 year yield, it is three basis points as the price goes down. that is why it is in red. bank of america and citigroup a few of the banks benefiting. they think it is the best performing group today. what is interesting is as you see was going on with the treasury market, they are not necessarily keying off with the fed rate odds. take a look at the bloomberg. looks at the s&p 500 bank index in blue and the likelihood of the fed funds futures of three hikes or more this year from the fed. the likelihood is going down to the market pricing and perhaps more like to rate increases this year. bank stocks appear unfazed. they have continued to rally even as the odds have gone down. finally, as we see financials go up today, the worst performing group is telecom.
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verizon announcing late yesterday that it was going to , a new unlimited data plan. that could drive new hire data traffic, which could be good for dish. flipside, verizon and its peers are seeing more competition which could see a lid on revenue growth. that is why we are seeing the downdraft today in those telecom providers. vonnie: thank you. fascinating. that's check in on the first word news. mark crumpton has more. senate isu.s. expected today to confirm president trump's choice to be treasury secretary. steve mnuchin is a former goldman sachs banker. democrats complained that when bank, he failed to protect thousands of homeowners from unnecessarily foreclosures -- unnecessary foreclosures. mnuchin says he helped homeowners with financing so they could keep their houses. in syria, begun sending out
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formal invitation -- invitations for upcoming talks in tunisia for peace. it will be one of the first negotiations among syria passes warring side in more than 10 months. the talks are to resume next monday. they were last held in april but were suspended when fighting broke out. at least 11 people were dead and a others wounded after protest rally in the pakistani city. officials say a man on a atorcycle rammed into crowd. fraction -- faction is claiming responsibility, saying it was revenge for military operations against islamic militants. in california, good news for almost 200,000 people urged to evacuate because of fears that a away wouldency spill fail.
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reduce concerns that the spill a 30could break and send foot wall of water into nearby town. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: thank you for that. trade will top the agenda as the canadian prime minister justin trudeau meets with donald trump for the first time in washington. trump pledges to renegotiate nafta. billions of dollars of trade between the two countries. for the latest, reporting from the white house, the two leaders are distinctly different. that is understating it in terms to theirey relate constituents and constituents abroad. how will they talk to each other today? >> usually, the relationship between canada and the u.s. is a
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pretty benign relationship but a pretty solid and stable relationship. but as you mentioned, because trump has opened this possibility or very strongly committed to renegotiating nafta, that really throws the relationship on turf it has not been to in a very long time. there has been a sense out of they will not be affected significantly by any sort of renegotiation of nafta. trade deal is reopened and put on the table, anything is possible and that is what canada has to be prepared for. i think canada is really watching. to make sure they do not do anything to poke the u.s. and cause additional trade barriers be placed on them. at the same time the u.s. is going after mexico. at the we are looking photo up there earlier when the leaders met. we will get an actual press conference and we will hear a little more from both leaders. what will have been agreed to
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today, if anything? will it just be a bunch of speak about how this will all go smoothly? in the past weeks, we are less than a month into the into thistration -- administration, the third world leader to come visit, as we have seen a pattern, it is more of a getting to know each other, laying some general terms, no clear framework has really come out of any of these meetings. theresa may, japanese prime minister, spending the weekend at mar-a-lago with president trump. now we have just introduced -- justin trudeau. i think it is more of an opening in the relationship and the talks around trade, which definitely will be continuing. vonnie: we know quite a bit, more than perhaps we want to know, of what donald trump wants from mexico and what he does not
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want from mexico. what do we know about what he really wants from canada? shannon: he has not really talk about canada. in a few instances i brought the question, sean spicer, is scattered are on the table here and we talked about renegotiating trade and the answer has been all trade negotiations are on the table, that they will take a hard look at everything. automobilesot more from canada than we do from mexico. there is a massive amount of auto production done in canada right now, more so than mexico. thosecould easily look at auto companies which he has come targeted as a place where he wants to see investment in the u.s., and say, why not bring investments from canada and the u.s. that is something that could come up and i think canada should be aware of the possibility. one of the big reasons behind today's visit is
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promoting female executives, female participation in both corporate government. what do we know about what u will tellea president trump on that front? has beening matchup criticized for in a few instances even on the campaign, the lack of female leaders in the campaign despite the fed of having kellyanne conway, and incredibly senior email official on the campaign, and now in the administration, but there have of executive orders being signs when there were no women in the room, that they have gotten some flak for. criticswith a lot of when it comes to women having high-ranking -- >> there are female executives that will take part in that today. shannon: yes. that is something we only learned about last night and my
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understanding was that was something that was an issue did by the team in canada and wanting to get that on the agenda. back with you and a little bit when we know more. a reminder, we will take that press conference a little later on. by 2:00 eastern, 7:00 p.m. in london. the canadian prime minister justin trudeau. let's get to julie hyman with breaking news. julie: the mobile price shares are spiking. that company now up i 6% on headlines it has signed an agreement to work on super navigation data. be some kind of new navigation standard for automatic driving. i assume they mean autonomous driving. they will be developing swarm data for this type of driving. it looks like a contract will be seen by traders as good news. shares are already up about 68% over the past year and are trading at about their highest
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in five months. we will continue to monitor this and get you more details on a eckley what this is all about when we get them. that.: thanks for we definitely want to know more about it. we are tracking treasuries next. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. works torugmaker teva
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reduce debt. could be valued at 7 -- several billion dollars. may sell other non-core assets such as the ingredients business according to these people. agreed to pay more than 670 million dollars combined to settle personal injury lawsuits. the person related to teflon chemical. evenlyment will be split between the companies and relates to about 3550 claims. both companies deny any wrongdoing. billionaire jeff asus wants -- hbo and showtime. early talks about developing a channel carrying its dramas and movies. the plan was sponsored by amazon's recent success at the
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golden globe and won an oscar nomination for its movie. that is your latest bloomberg business flash. america's biggest creditors are dumping -- to investors in japan, dumping their stakes in december by the most in almost four years. bloomberg found out about the details in the latest story -- why on earth in december of all months [indiscernible] theaps on the to do with japanese fiscal year? it had to do with a lot of donald trump and his effects on aftermath ofn the the election. we saw yields jump up more than we have ever seen before to new highs. that caused japanese investors here. look at our losses let's take some chips off the table and take some losses ahead of the march 31 fiscal year end. at the chart, you
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will see it may not just be japanese investors. 2012ent from the height in -- 2010, a little lower and suddenly negative now. >> yes. china was the largest holder for a long time and they are now second two japan. , withestion going forward trump's's fiscal plans, infrastructure spending, tax -- , raise the deficit, vonnie: do we need to be concerned? sometimes, it feels like if we put it out there, there will be some buyers. >> yields are near the record lows. 100 basis points from the 10 year.
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over the cost long-term. the question will be again, whether the foreign buyers will step in and pick up the slack. an alternative on 5966, -- >> of the reason i wrote this is it seems like it would be a great time for japanese buyers to step in and by because the isck of -- the bank of japan keeping that around the euro to the 10 basis points range. fora lot of yield pickup the buyers. they are saying we like the bank is controlling the cost. come of the yields could go up another 100 basis points possibly. there other reasons for china offloading a little bit? motives all teary or with china as well. they want to make sure the
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exchange rate does not get too out of whack. there is a lot of u.s. and china trade together a lot. they want to make sure it is still advantageous to them and they have a huge fx reserve their to deploy. is it affecting prices at all? is that demand by domestic demand? collect that is what we are not sure of. it seems ago real trading range. the treasury yields cannot 230ly break out from the and 250 range. treasuries have not done terribly this year. they have not provided a lot of total return. they have not seen a lot of yields back up like they did in november and december. japanese buyers, no official date out yet. thank you.
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from thelines now donald trump meeting with justin trudeau. they are speaking at the white house now. we will bring you comments later. some headlines, trump saying we need policies that keep women in , the u.s.rce president saying we need policies to keep them in the workforce and also said it is not working well for entrepreneurs and u.s. capitol. trudeau is saying it is powerful leverage to have women -- still ahead, is the oil industry shifting to growth mode? we look at the outlook or energy m&a. this is bloomberg. ♪
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vonnie: this is bloomberg markets." time now for the bloomberg markets deals report. theght and analysis from biggest players behind the deals. we are looking at better oil and gas deals back on the table as oil prices start to stabilize. the executive editor of deals is standing by with the u.s. energy leader. cliff thank you. deborah, good to have you. thought was down and did not have as many big high profile deals was energy. at&t and time warner, monsanto, thecomm, the big deal of year was ge and baker hughes. beyond that, not much. why was that? we had ge, baker hughes, and a couple of others recently announced. about 28 billion. but you are right there was not
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a lot of mega headline deals that you see. the bid ask price spread with oil prices being low and the volatility and certain he around a lot of things driving it, was the excess supply coming off the market, why should i excel now if a you are the accelerator at what may be the lowest point in history. the spread caused a lot of deals not to happen. >> to you feel like ideals were lacking in 2000 seen? do you think we will see energy ipo's is this year? >> i think there are huge -- there is huge and up demand for ipo's. there were quite a few issuances are not -- but -- by public companies in the equity market. a little bit of confidence there. interest did not happen. there is a lot of pent-up demand and the investor community is very much interest in oil and gas.
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>> esp or you feel like the barrel of oil has fallen low. you can write the company up when they go public. >> and if you look at the sector, it is a good dividend yield market. at big oil companies, they have protected their dividend, payout. the look at the midstream market, a very strong yield payor. i think investors are interested in that. >> the barrel of oil fell roughly a year ago to what was the impact for the big companies we know or even though service companies like weatherford? >> a story of have's and have-nots here the large company you just mentioned, they play for the long cycle. they are on a 20 year planning cycle. they have gone through these before. oil has been as low as nine dollars and people forget that.
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that.k they will plan for the independent players, the balance sheet was not a strong but you saw them go through that cycle and go back to the equity and capital markets. then you saw bankruptcies. they did not go out of business. this is what is interesting about upstream players. they have new owners but they did not go out of business. >> just the ownership changed. so you have mentioned oil services as an area you think could pick up this year. halliburton, i mentioned. why'd you expect that to be an area of them in day in 2017? >> you can see in north america account coming up, a healthy sign for the industry. a lot of cost reduction.
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some of that came off the back of their own margins. how much of that is permanent? there is a debate. that can drive consolidations for companies to try and capture that and become the competitor. we appreciate it, deborah. good to have you. u.s. energy leader for ui. --there is a ey. the latest fall from the eu and the u.k. gdp growth rate forecast. this is bloomberg. ♪
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private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. let us bring you headlines from the meeting today between president donald trump and the prime minister of canada, justin
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trudeau. there's also been a meeting women,ing entrepreneurs, and in particular, the advancement of women entrepreneurs and leaders. meeting,t of that while we're waiting for playback of the pictures, prime minister trudeau talking about how powerful it is to have women in business and donald trump is repeating that the economy is a place where women can work. trump says he will be working closely on trade in the near future. let's get to the headlines out of bloomberg first word news . it's mark crumpton. mark: the kremlin says vladimir putin made meet trump in july at the g-20 meeting in germany, but there are no details of an earlier meeting. a spokesman also said russia and the united states have not discussed former national employee, edward
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snowden. snowden's lawyer rejected a report that russian officials are considering handing him over to the u.s. as a "present." four skiers were killed in an act blanche in the french alps today could -- in an avalanche in the french alps today. the avalanche was 330 feet wide and 1300 feet long. it struck an area of an resort known for its extensive slopes. officials say the chances of finding anyone else alive also are slim. security council will hold a meeting tonight about north korea's vessel. japan is urging action against pyongyang. the concern is that north korea will be able to develop its missile technology enough to put a nuclear warhead on one of them.
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global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries, i am mark crumpton. vonnie: let's get a quick check on u.s. stocks. we have been seeing more records for the dow 20,000. up 128 points. the s&p 500 up one half of a percent. nearly approaching the $20 billion market cap amount and the nasdaq is up as well today. let's get more details now from bloomberg's abigail doolittle. abigail: with stocks trading at all-time record highs, we thought it would be helpful to look sector and micro stock was. vonnie: we are going to go to the president and his fine bilateral meeting with the premise for a character -- the prime minister of canada. he gave me amp:
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picture of his father and the president at the waldorf the story of togethe l story of tog. we have great women and business leaders did we have so many great women leaders around the table today and we will go through your names exactly because many of you i know, but some of you i don't want to find out all about it. i can say from my past life i have so many women executives and they are phenomenal, phenomenal. they really helped me a great deal in business and was really fantastic. they played a tremendously important role in our economy. women are the primary source of income in 40% of american households. households with children under the age of 18, in order to create economic growth and lots of very good, well-paying jobs,
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we must ensure that our economy is a place where women can work and thrive. i think that is happening in the united states much more so. i appreciate you being involved in this. justin, i know you are in canada and it's very important. we need policies that help to keep women in the workforce and to address the barriers they face like female entrepreneurs. they are unique. we need it to be easier for women to balance the demands of having a job and a family. italso need to make easier for women entrepreneurs to get access to capital. all chip in norse, we have to help them out because the system is not working well for entrepreneurs getting capital. it's particularly difficult for women. so we are going to get access to markets and access to network. i look forward to hearing your advice.
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we are going to go around the table and we are going to really learn something today. again, it's a great honor to be with you. ontin, i can say behalf of our country, it's an honor to be with the. you. trudeau: thank you for welcoming me and we are sitting around the table with a number of successful executives are just happened to be women. one of the things i've been lucky enough to do over the past year in new york and beijing and across canada is sit down with women ceos, women executives to talk about their successes and the challenges they are facing that are particular, but also how we can create more paths for success for women across our communities and our society. with womensit down executives, i know that she has had to overcome significant barriers that exist and
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therefore is likely to have greater insight into how to break those various for others and can be a formidable contributor to the success of businesses and the economy. i think for me it's not just about doing the right thing. it's about understanding that women in leadership positions is a very powerful leverage for success for business and for communities and for our entire economy. [speaking french] it's a great pleasure to sit down and hear from your extraordinary leadership. president trump: how about we start with ivanka? you might want to say couple words. a: i'm really honored to be
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here and i'm looking forward to serve as a diminished role model for women leaders and we can lend some tremendously valuable perspective. workhing is norse need to for small business owners. as we think about how we level the playing field for this generation and the next, thank you for being here and i look forward to hearing from each of you. president trump: thank you. >> i'm don pharrell from a company in alberta. opportunity to contribute to this important dialogue. it's a dialogue that we a 54 for hundreds of years. -- we have had for hundreds of years. our company generates electricity from coal, natural gas, and wind, hydro, and solar.
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we have operations in canada, the united states, and australia. vonnie: you are watching a meeting that is taking place at the white house. bilateral meeting between president donald trump in the prime minister of canada, just a trudeau. -- justin trudeau. it also includes women leaders to talk about women in the workforce and executive levels. donald trump saying he is going to work closely on trade in the near future and the idea of it difficult for any entrepreneur to get capital, but particular difficult for women to get access to capital. prime minister justin trudeau says he was very happy to be there with successful onto the north who just happened to be women. let's get to abigail doolittle now for more details on what happening -- is happening in the markets.
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abigail: we thought it would be very helpful to dig in a little bit and take a look at what is happening sector in stock was. 500 industrials index is trading at a record high. it is a big sector higher on the reflation hopes that present trump would offer stimulus to the economy. two of the top performers are honeywell, the conglomerate that makes anything from air to her fires to aerospace trading could -- ap or fires to aerospace trading. l3 commissions holdings is also doing quite well, according to george ferguson. we also have the consumer discretionary index at a record high. we have a real mixed bag of stocks that are also at record highs. priceline in red we will start off their. it does not look like it will be at a record high, but it was moments ago. a bloomberg intelligence analyst told our team that what is happening is the portal is doing quite well. that is one reason that stock is near record high and slipping
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right to the green. goodyear trading higher despite challenges in the year ahead. hasbro, who knew? it's one of the top stocks in the consumer discretionary space and they put up a great fourth quarter with the stocks trading well after that disney affiliation. another stock trading at a record high's southwest airlines hitting yet another record high. also trading high is delta airlines and american airlines. sectortingly, the did take a hit with the announcement of the trump travel ban. it has recovered quite nicely from this. george ferguson says the reasons that less is doing so well is that they are showing strong constraint around capacity that can help affairs, but there are some headwinds in the first half of this year. when we happen to the bloomberg this is at g #btv 5967, a longer-term chart of the s&p 500 airline index. we see a beautiful art trend.
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to itsrading in relation 200 day moving average, an indicator of its momentum. it is 30% above that 200 day moving average. thistime we have seen happen is that the airline index reconnected with that 200 day moving average, suggesting this rally could be over and the airline index and maybe the broader markets may be doing a poll that. -- a pullback. vonnie: we are looking for any signs, but the question is should we believe them or not? from nfl great to private equity , how former 49ers quarterback and espn talking head steve young did just that. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. former 49ersthe quarterback and espn talking head, has reinvented himself as a private equity dealmaker. alex charm and now with more. had a little bit of pleasure spend time with these next guest for a story out now. the first person to your right is rich lawson and the man to his left is steve young, former 49ers great and hall of fame cornerback. thanks, gentlemen, for joining us. steve, i want to address something. pickede of publications up a tidbit about how you juggle your career and i want to give you a chance to clarify how you do that. steve: sure, alex. when you leave the game, i
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remember roger stop at told me when he finished playing, run. it's not to run away from the game, but to not dwell on it and have a plan. the reasons we sat down for the article is membership and how i can get players to think about their futures and to make sure they are prepared with education and other ways to inspire them. i played 17 years and still needed another career. i built and expertise over the last 20 years in private equity, but it is certainly a little disservice in the article about my passion and expertise at espn for football. the truth is i spend an inordinate amount of time in the fall preparing for my job. espn gratefully put a camera in my office so i talk about the issues around the league for sportscenter. we have our production meeting trent, monday show with
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charles, and randy and susie. monday on the field, preproduction meetings. and during the game, if there's any interaction with anybody away from football, we have a two hour show before the game. there are breaks and there were we can say hi to people on the field. during the game, and the first quarter, we spent watching the game for the feel. in the fourth quarter, we are back on the field. more than anything, there's a little bit of insecurity for players who leave the game and want to do something else. they want to create a new profession and expertise. i've done that for almost 20 years, but my other expertise, i don't want to do disservice to my family at espn, who i will be on one of the few -- honest with you, i was with you stand longer than the 49ers. i feel i can been doing it for 15 years, which for me may be my
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best year this year as we did the post game for the super bowl. more than anything in the article, don't misconstrue my passion and focus for doing a great job. i think there's not a conflict of the two jobs at all and i'm really lucky to have them both. listensthink anyone who to you knows how excellent you are at football commentator. the point of bring that out in the story is to simply alert people to the fact that you do have two things going on at once, which i think a lot of people don't realize. it's a good segue. tell us how you learned about the private equity industry. you have beenthat doing this longer than you have been playing professional football. steve: luckily i made good friends with worn helmet back when i was playing. i got introduced to the business world. rich lawson on my left ear was the ceo of a business i started when i finished playing. that's how we got connected. a good friend of mine with bank capital gave me the
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opportunity to transition from football into private equity and direct investing in 2001. rich and i were founding members othere. a lot of it was from silicon valley relationships while we were playing. a lot of us would sit around the locker room and think about how we camn get involved with this explosion of silicon valley around our pack this facility. we got great relationships in the venture capital world. it seems odd when people meet me and they say how did you get started and private equity? but you have to think about being around the silicon valley area and the late 1990's. ggcx: talk about the h strategy. rich: we have been able to grow to a little over $4 billion of capital under management.
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we have over 46,000 employees involved in our portfolio companies. we continue to do what we call middle-market private equity control deals. there is a tremendous opportunity today to go back to basics and what private equity used to be in the 90's in terms of the average size. we have had a great run. it has been a tremendous opportunity and spent a great time to be able to work with steve along the way over nearly two decades. alex: you can read more about hg gc. i would be remiss if i did not ask you football question or two. you did publish an autobiography lately and the first quote on the back of the book was from tom brady. is tom brady the best cornerback all-time now? steve: it sure feels like it with five super bowl's now. i do the post game of the super bowl and we were watching that last couple of drives from the side of the field and you think
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to yourself the enormity of the inent, the greatest comeback the history of the super bowl, and also what tom has done over and over again. in the post game i referred to him as relentlessly excellent. that really came through as he finished the game. it almost felt inevitable we he got those opportunities toward the end of the game and i do not know if anyone has been able to do that over five super bowl's. with joe montana and all the great players, i was not great at taking the greatest of all time because i think used generation builds on the next and is informed by the previous. to me, who is the greatest of their generation? tom brady certainly is. alex: steve young and rich lawson, it has been a pleasure spending time with you for these past two months. thanks for joining us. and you can is alex check out that story in the current edition of bloomberg businessweek. janet yellen's testimony to lawmakers begins tomorrow. it is the first since donald
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trump became president. she is expected to keep the fed options open for march, but fiscal policy remains a wildcard. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. this week we are going to your remarks from a range of federal reserve officials and that will include janet yellen. chair yellen what the liver -- will deliver the semiannual testimony. in addition to the testimony, investors will have a slew of eco-data to weigh. joining us now to discuss the week ahead in economics is gina in washington. wise this particular testimony different?
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why is it important? the first time yellen will testify since the new congress took office and donald trump took the presidency. we are finally going to get a sense of how she is going to interact with this slew of lawmakers. go -- my krakow is now the chair of the senate banking committee could it will set the tone of how this banking committee will look at the fed as an institution compared to the town we had the last four years. vonnie: it's extraordinarily authentic while keeping her cards close to her chest most of the time. is it any chance of an idea of what might happen at the march meeting? jeanna: we talked to economists, they say the chance is limited that we will get much of a sense of what happens in march, but it's going to be interesting nonetheless. what we will hear from janet yellen is a sense of how she is viewing the data coming in right now and it will also get a sense of how she is a viewing the
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outlook for fiscal policy as the year moves on. we are a must positive that janet yellen will be asked about fiscal policy the next couple of days. she gives any indication of whether the fed will try to preempt those policies, that is something markets would really care about. vonnie: what will we hear from both the lawmakers and the fed chair about changes in regulation, about perhaps daniel turley leaving? jeanna: as far as regulation is concerned, this is going to be a fascinating testimony. daniel tarullo, the financial regulations are at the fed, just announced his resignation last week. this is going to be something of a void at the fed until his replacement is named. what janet yellen comes out and says tomorrow in regard to keeping dodd-frank in place and in regard to making sure banks are still well-regulated is going to set the part of the tone for how she is going to interact with congress as dodd-frank changes are made
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. it is deathly something to watch out of this testimony. vonnie: that's our bloomberg reporter from our washington, d.c. bureau. you can catch chair yellen's testimony at 10:00 a.m. eastern tomorrow as we will take you to it live. i also want to point out a fantastic function on the bloomberg if you cannot get to the tv screen. you can always watch live television on your bluebird. type in the function tv . you get to the page where you can clip on bloomberg television and watch us live. tv is fantastic. you can follow along and send us a message. this is bloomberg. ♪
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david: it is 1:00 p.m. in new york and washington and 2:00 a.m. in hong kong. i'm david gura. "bloomberg markets." welcome to "bloomberg markets." here are the top stories we're
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watching at this hour. the feminist or canada, justin trudeau, is at the white house talking trade policy. i will sit down with michael cronin in a moment. the senate is to look at the treasury pick. who exactly will be shaping the administration's economic policy. joining us now is mike furman and alec blinder and the former fed vice chair and ambassador now the university of denver. ♪ time, just an hour's president trump and prime minister trudeau will hold a press conference at washington. what both sides are looking for is shannon pettypiece and the man who is traveling with mr.
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trudeau washington this week. let's ask about what canadians are expected out of this visit. they will be talking about trade and refugee issues as well, expecting some hard-nosedess ness from their prime minister in washington. >> justin trudeau is expected to talk trade, trade, and more trade. they're obviously ideological differences with donald trump, but canada is to expose to some of the changes donald trump has talked about when it comes to nafta and some sort of border adjustment tax. canada is here to mitigate some of that and the politics of liberal versus conservative can wait another day if you are justin trudeau. given that the premise or has been there for a couple of hours, how easy has that made this first day at the white house? shannon: it is probably the best strategy. third formal
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visit by a world leader in a month with prime minister theresa may and prime minister shinzo abe from japan. i think all them have taken a very conciliatory, friendly, opening handshake to further negotiations down the road. we are obviously in the honeymoon stage of this administration and all these relationships with the countries. i would expect something similar with this as well. vonnie: no weekend golf trip between these two meter leaders. david: are we going to see those replicate that in any way? i'm sure that trudeau and all of the canadian media would love a trip to mar-a-lago at this point. i would not be surprised if that came up, but with japan and be, theinister a japanese prime minister met the president at trump tower.
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they talked about security in the pacific. they spent hours golfing. abe's wife took a tour of mar-a-lago with melania trump. the couples had dinner together. japan is certainly really putting in the effort and making an initiative to develop those u.s. relations. trump felt he had a very good meeting in new york with a be and that's what he thought it would be good to go down and spent time together. david: the president has talked about revising ou nafta. how much of an appetite is there for canada? josh: they offer to a renegotiated before donald trump was inaugurated, but they mentioned they will go to a bilateral route if they need to. there's not a lot of mexico-canada solidarity here. it went for justin trudeau in washington is to get any sort of
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indication from donald trump that canada is not the target. the balanced trade surplus deficit situations are not the target. that would send a positive signal for canada and canadian companies that hope they will not be get hit with a broad brush of donald trump. david: thanks to both of you, shannon pettypiece and josh wingrove.ger investor michael froman is a former ambassador under now aent obama and he is distinguished fellow at the council formulations and joins us now from washington, d.c.. great to see you again. let's start with the meeting today. how important is this trade relationship between the u.s. and canada? it's a very important relationship as we trade more than $2 billion a day across that border. most of canada's exports go to the u.s..
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about 70% of their exports go to the united states, so they are quite dependent on our market. it is a long and broad relationship. we still have trade issues. we addressed some of them in tpp and there are other issues that continue to be irritants in the relationship, but we are starting from a very strong foundation. david: on a day like today, we compare and contrast tone intact. certainly the reception for the prime minister of canada was warmer than the one on the table for the present of mexico. how do you compare these two trading relationships, the relationship we have with canada and mexico? michael: people talk about renegotiating nafta and there is greater focus on mexico and the concerns that some people have about the relationship with factories moving across the border and into mexico. we really have an integrated north american production platform that includes canada as well as mexico and the united states.
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in certain areas like auto production, it's very much integrated across our northern border as well. there are a lot of issues there. in tpp, we were able to renegotiate nafta by getting access to canada's dairy and poultry markets, by strengthening their social property rights, improving the investment regime for american firms in canada. i think the question will be when it comes to renegotiating nafta, what does the trump ?dministration seek from canada there are a number of outstanding issues. canada has a protectionist strategies. y. there's an issue with lumber and they're keeping wine out of our stores. there are a lot of issues to talk about if trump is serious about wanting to renegotiate that relationship. david: do you think it is worth it to negotiate?
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there are parts of nafta that are over 20 years old. michael: senator obama talked about the renegotiation of that and that is what we did with tpp. tpp represents a significant improvement of nafta over 20 years ago. what further steps does this administration want to take to go beyond that? we've not heard a lot of specificity yet either vis-a-vis mexico or canada. that is the question on the table. david: you have been out of office for a few weeks now and you have thought a lot about where multi-liberals and is headed -- multilateralism is headed. is it too early to write the obituary for multilateralism? is globalization dead? michael: it is certainly not that coul while th dead. while this demonstration has stepped back from our purchase, the rest of the and ministration is moving ahead. china isn' leading
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negotiations with countries like japan and they are trying to get it done this year. we have seen it even in the context of brexit the u.k. very much focused on not pulling back from trade negotiating further trade deals with the u.s. and a lot of other countries around the world. globalization continues. the real question is is the u.s. going to be part of that and help lead and shape it in a way that reflects our interests and values or are we going to sit on the sidelines and let china define the rules of the road? david: is the tpp dead? i know many parties will be talking about that moving forward. australia plans to move ahead with the deal could is i. is it dead? michael: a lot of the countries in the tpp one it to move ahead with or without the united states. to all of our collective interests and our values in the region. that meeting in chile will be important in the overall
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process. andident trump any ministration has made clear his intention to withdraw from tpp, but many of the things we negotiated and tpp may find their way into agreements like those renegotiation of nafta or bilateral agreements with japan. david: peter navarro has said he is interested in going out to countries that have big trade deficits. if i'm indonesia or malaysia or vietnam, how worried should i be here that the u.s. government could take some sort of retaliatory action against me because of the side of that trade deficit? michael: there's been a long debate about how much bilateral trade deficits mean and what they really signify. wonderful trade surplus in the context of the great depression. we had a trade deficit figure in the 1990's when we added 20 million new jobs to our economy. it is one measure and one metric .ifl
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it reflects unfair trading by a partner, it should be the focus, but there's also other factors what sometimes we are growing faster than our trading partners and that is helping to suck and imports to united states. i think the question is if the in ministration is going to impose tariffs on other of oures in violation international obligations, we are inviting other goo countries to impose tariffs, ,nviting them to imitate us making it much more difficult to hold china or others' feet to the fire when it comes to living up their obligations, and raising tariffs is fundamentally attacks. it is a tax on the consumer in the united states, perfectly low income americans who spend a disproportionate amount of their income on tradable goods like clothing and footwear and food. there are a lot of second and third order indications, some of the proposed ideas that are out there. we have to be hopeful that
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people think through the second and third order indications before going down that path. david: as michael froman, distinct fellow from the university of denver in washington. we will bring you that joint conference of president trump and premise or trudeau. -- prime minister trudeau. mark crumpton has more from the newsroom. mark: lindsey graham says he hopes that trump understands that "russia is not our friend." speaking to reporters in his home state, senator graham said that russian president vladimir putin is an enemy of democracy everywhere. graham also said he will lead a push in congress to impose new sanctions on russia for its interference in the 2016 u.s. election. the european commission says president trump and breads it are heightening economic risk in the euro area. it is the first set of economic forecast since the u.s. election. the european union is bracing
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for potentially tough times. trump has taken a more protectionist trade stance and it may be dominated by brexit negotiations. the senate is inspected to confirm the president's choice of treasury secretary. steve mnuchin is a former goldman sachs banker. rancrats complain when he one west bank that he failed to protect thousands of homeowners from unnecessary foreclosures. steven mnuchin said he helped hope owners with refinancing so they could keep their houses. in taiwan, a tour bus flipped on a highway ramp, killing 26 people and others injured. most of the passengers were believed to be senior citizens returning from a tour of cherry blossoms. global news 24 hours a day the powered by more than 2600 journalists and analysts in over 120 countries, i am mark thompson. this is bloomberg. david: we will tell you how a
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leadership vacuum out the u.s. treasury department is begin to weigh in on key areas of u.s. economic policy. that is coming up. we have footage of prime mr. trudeau walking with donald trump. we will take that to you live on bloomberg television. and you can watch it on your bloomberg at life go. this is bloomberg. ♪
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david: this is "bloomberg markets." are focusing on policy and politics in trump's first 100 days in office. let's get a check of where the markets stand right now. julie hyman is here. julie: there has been a
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interplay of the markets and politics since the election . we get this reflation trade back into affect not just for today. the s&p is up for the fifth straight session as well. movementen a sideways in the market and still we are seeing relatively small moves, less than 1% moves for the major averages. in terms of what is winning today, a lot has to do with cyclical groups, those dependent on the economy doing well. materials among the best performing stocks today. steel and nucor among them. morgan stanley expecting a rebound in steel prices, so that appears to be helping some of these big steelmakers. as we talk about reflation, we are watching the treasury market as well. money going into stocks and coming out of the treasury market. the 10 year today is seeing an increase in yields and decrease in price run about three basis points to up to 2.44%. that has been helping the financial stocks in particular,
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which are the leading group in the s&p 500. what is also interesting is that we have been looking at trends in foreign treasury buying or lack thereof. last year, we actually -- if you look at the bloomberg, we actually saw a pullback in the treasury buying in the united states. the details of this are in a story out by brian on the bloomberg and on today. in perspective that even as we saw japan and china selling u.s. treasuries, they still hold about 43% of u.s. government debt overall. that is about $5.94 trillion. nonetheless, as we get these meetings between president trump and his international counterparts, this is something to keep at the back of your mind. many of them are big holders of u.s. debt as well. david: they give a much. julie hyman with the market update. u.s. senate is close to confirm turned sachs banker hollywood producer steve mnuchin
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today despite concerns from democrats that say he failed to protect thousands of homeowners from foreclosures when he headed one west bank. he will be tasked with building a team to group a finance meeting next month and will decide how far to rollback dodd-frank. here now with the latest is kevin cirilli who joins us from capitol hill. kevin, let me start with you. give us an indication of who would be driving economic policy and this administration? gary cohn already touting the fact that he is crafting a tax policy proposal. which of them will be taking the lead role here? kevin: i think it's going to be a combination of both. i think gary cohn clearly has proven already that he is going to help shape and craft economic policy on a variety of fronts. on friday for example, president trump announcing gary cohn would be the point person on aircraft financing. he also of course has met with stephen mnuchin, likely to be
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confirmed a later this evening for treasury secretary here on ,apitol hill with top lawmakers including senate banking committee chairman mike crapo as well as his counterpart in the house of representatives, representative jet tensor link of texas. i think it is going to be again yang approach. -- a union approach. he will be busy at work being able to craft a relationship with the various agencies. he takes a much more calm like world of you much like mick mulvaney. david: it has been a while, this confirmation process. he wishes more of his cabinet were in place. how has the treasury department been operating without a head at this point? we saw the new sanctions on iran a couple weeks ago. how's it doing without a head at this point? >> there have been some policy mixups.
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there is a treasury secretary, hisis not someone who i implementing policy. the ruble moved on headlines from bloomberg, but there was no one at the treasury department instantaneously for the news or the market to go for next donation of such news. there are some funny signals being sent with no one to turn to for help. david: we were talking about gary cohn and steve mnuchin come a both of whom are goldman sachs alums. his new awareness among those in the treasury department and administration that there were some optics problems with that. it may affect jim donovan, who is rumored to be a top appointment. what is the latest on that? saleha: jim donovan is said to be considered for deputy secretary of a number two to mnuchin or maybe undersecretary of domestic finance. both good roles for someone to take. the one thing that seems to be holding donovan back from getting a position where he
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would need the senate's approval is the fact that there is just another goldman guy and there. they are starting to wonder about that. david: what can you tell us about stephen mnuchin's relationship with lawmakers? i remember he had the conversation hearing and he reported himself fairly well. it was a long meeting with lots of questions. what we know about his relationship with lawmakers on capitol hill? kevin, go ahead. with: he has worked close chairman hence are linked and has asserted himself as the goto person for the administration on tax policy. that put him in direct contact with house speaker paul ryan. i spoke with several sources of republican aides on capitol hill who reiterate that speaker ryan is incredibly interested in tax reform at the corporate level and also at the individual tax reform.
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with steve mnuchin, he is going to be directly in the middle of the storm if you will. between that is not only leadership in congress but gary cohn at the white house. he is someone who has had the president's ear several times throughout this campaign. he is someone who has a personal relationship with president trump and i anticipate that to continue. i do not sense any tension at all between steve mnuchin and gary cohn. david: i'd like to get your response as well. steve mnuchin does not have a whole lot of experience in washington. what do we know about how he would navigate washington? saleha: it's hard to say. you'll must wonder if there was someone from congress to join the treasury to help navigate that complicated relationship because he does need congresses help to push through trump's ambitious domestic economic agenda. he did have jeb hensarling and kevin mccarthy in his confirmation hearing, flanking him by his side when he delivered his testimony.
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it sounds like they are off to a good start, but the work is not really started yet. david: thanks to you. leha is kevin cirilli and sa moshin. we will bring you president trump and prime minister trudeau's press conference live at 2:00 p.m. washington time. this is bloomberg. ♪
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david: this is "bloomberg markets." we are focusing on politics and policy during president trump's first 100 days in office. was take a quick check now the markets. was take a quick check now the markets.. the dow is up in the s&p 500 also up 13 points. andnasdaq is up 32 points half a percent at 5766.
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financials,g industrials, and materials leading the way for the major indexes. apple has been flirting with new highs, up about a percent at 133 56. tv on the bloomberg right now, a new feature on the bloomberg. you can watch programming lives and see programs you may have missed. their all caps of added value including headlines and charts that may have appeared on the bloomberg. up next, alan blinder will joined us from the brookings institution. we will get his thoughts ahead of federal reserve chair janet yellen's testimony on capitol hill, which kicks off tomorrow. this is bloomberg. ♪
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david: this is bloomberg markets. it trump's first 100 days, focusing on policy during the
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administration. first word news this afternoon, mark crumpton has more for us. has spokendent trump with south african president jacob zuma about trade ties and stability in africa. president zuma said that the leaders spoke on the phone, reaffirming their commitment to building the "already strong relationship between their nations." there are 600d american companies operating in south africa. the countries have strong trade ties. israel toss prime minister is visiting the united states this week. hoping to reset the two countries relationship. when the prime minister meets with president trump, the priority will be to make sure that israel is kept in the loop. he also was to ensure that israel in the u.s. had their positions generally aligned. at least 11 people dead and 60 wounded after a bomb blast
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ripped through a protest rally in the pakistani city. a man on a motorcycle rammed into the crowd of hundreds of those protesting changes to a law governing drug sales. a taliban faction is claiming responsibility, saying it was revenge for pakistani military operations against islamic militants. in northern california, good urged to200,000 people evacuate because of fears that a dams emergency spillway could fail. overnight,s dropped reducing concerns that it could break and send a 30 foot wall of water into nearby towns. news 24 hours a day powered by 2600 journalists and in over 120 countries. i'm mark crumpton. david? david: let's turn to the federal reserve with janet yellen and
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her testimony. it begins tomorrow, her first since donald trump became president. us is the memorial professor of economics at princeton. a fellow at the brookings institution. vice chairman chairman of the federal reserve board of governors. what should we be listening for tomorrow when the fed chair speaks? how much does the testimony tend to change here? guest: it depends on circumstances and the big circumstances change in this case from six months ago. who the president of the united states is, not so much about the economy. what we will be listening foremost -- i don't expect to hear it, but it's possible. a hint, and it will only be a hint. a rate hike in march. i don't think she will give that, but it's possible. david: what would it sound like if she were to give it? guest: it would have things about -- she would talk more
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than she usually does about inflation, which is creeping up. not at worrisome levels, but creeping up. she would emphasize the strength of the economy. and she might -- it could come in questioning, speaking out aboutthe fed's concern excessive fiscal stimulus. david: how well will she -- guest: she will steer away from that. david: what about bearing out that there might be some sort of promise a fiscal stimulus? what is the right way to put this? they haven't had to thread the needle yet. when the trump fiscal policy is an ounce, the needle threading will start. i think jen it yellen hopes it is only needles and not sledgehammers. this could be a whopper.
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we don't know yet. if it is a whopper, then the fed will have to respond, not in a -- a muchuo way, but more subtle version of that will be the message. david: the cloud of uncertainty that she has begun to list, even if it reveals the fact that tax reform takes a long time. that these policies might take longer than investors would have hoped. guest: i don't think so. i think the cloud is mostly still there. i take the point about tax reform completely. it takes a long time. coming in and cutting taxes like george w. bush reminded us, and ronald reagan before him, it could come really fast. you hardly have to change the law. you just change numbers. let me ask how the fed has taken up a larger regulatory
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mantle. we had a letter from dan tarullo . a concise letter. it has been a great time working yellen.irman how much does that change when he steps down in april? guest: i think it leaves a gigantic hole. he has been there eight years. it leaves a gigantic hole. a lot of us are quite worried about the people that president trump might send over to the fed. he has three vacancies, which is enough to really transform the board. and presumably, one of them will be the vice president for chairman,n -- vice excuse me. for supervision and regulation. david: any idea who those people will be? i was talking with john alice this morning, a valid libertarian.
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-- a vowed libertarian. here knowledge to how difficult it would be to navigate if he were appointed to these affect change. someone who doesn't want to be there. guest: there have been a number of names bandied about on politico and other websites. john alice is one of them. a lot more than three. that't have to tell you president trump has shown the capacity and the desire and the capacity to surprise. i think he wants to. david: how is the fed chair going to navigate a republican-led congress that is intent on revising and changing dodd-frank? what will the role be on that conversation on how it looks in
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2017? guest: i think she will bring both the moral authority, and i think the fed still has that, and the independence of the federal reserve into the debate on the side of preserving most of dodd-frank. it doesn't mean nothing can change. there areid that things in dodd-frank that should be tweaked or adjusted one way or another. but the core of dodd-frank, the regulatory part and title i, the liquidation authority. and title ii, the consumer financial protection bureau -- i am forgetting which title it is. a few of those things. quite a few of those things are basic to dodd-frank. she has said the fed believes that they should stay in place. i don't see the slightest reason
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for her to retreat from that position. david: do you expect her to be more defensive of the fed or should she take a defensive role going forward? alan greenspan defended the mission of the federal reserve. the she need to be doing more amid this were long capitol hill? a talk of having a rules-based approach? should she be doing more? guest: i think so. it depends what congress does. if none of the antitheft laws -- anti-fed laws and provisions anywhere, then she doesn't have to mount a serious defense. but if they do, and i think that is more likely for some of them, then she will. some, to she will get more outspoken about it as she will get more realistic rather than high in the sky. they are more pie-in-the-sky.
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they will veto if they got to his desk. alan blinder, a fellow at the brookings institution, former vice chair of the federal reserve. coming up at the united nations, the security council holding a meeting on the latest north korean missile test. this is bloomberg. ♪
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david: this is bloomberg markets. it trump's first 100 days, politics and policy. trumps first hundred days in office. julie hyman has a check on
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markets. a timely check on u.s. canada economic relations. there is surprising stuff in here and we have seen a big rally in u.s. stocks and the election. -- since the election. the canadian rally outpaced the u.s.. 500 since thes&p election. aced paste each other -- p each other, despite a lot of the rhetoric. take a look at the bloomberg as well. go toercentage of exports the other country. and here, canada is much more dependent on the u.s. than the u.s. is on canada. exports is 73%, going to the u.s.. it is sizable. not insignificant. and finally, a look at the
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canadian dollar here. the average range is just a measure of volatility that will come down a little bit. the canadian dollar has gone below its moving averages. the canadian dollar is something you can watch today as we get some headlines out from the meeting. thank you very much, julie hyman with that update. north korea successful ballistic test over the weekend, china's ministry has -- we have a united nations security council meeting tonight. isning us with the latest the bloomberg foreign policy reporter. that, get us up to speed here. what did they test and why do folks think they tested it this weekend? ick: they tested an intermediate to long range missile. it was surprising and new, missile from a huge
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launcher on tank treads that had not been previously seen. thaned solid fuel rather liquid fuel. a couple of advancements there. this is sort of the first really big action by north korea taken during the administration of president donald trump. it will really force him to put his cards on the table in terms of what his policy toward north korean provocation will be. are these tests in a scientific sense versus provocation? are they trying out novel technology here? there is some indication that they are trying out novel technology. just to be able to say they had a successful test is a sign that they are perfecting this program. having exploded an atomic bomb or atomic device
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underground, months ago, you put these things together. it is more assertive emphasis on what power they have. in the sense that they tell donald trump, we do not want to be trifled with. david: let me ask you about president trump's response to this. this is what he said at palm beach. president trump: i want everyone to understand that the united states stands behind japan, it's great out lie. -- ally. 100%. thank you. david: he is with shinto abe, it is a 23 word statement. the obamayears under administration, there was a policy of strategic patients. -- patience.
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to a lot of people, critics that have come to occupy trumps administration, it seems like strategic indifference. for the u.s. administration's stance, and what it will do -- they are talking about this adding urgency to plans to build a missile defense system in south korea. a system that china opposes. japan very much in favor of it. they will push ahead with that. i visited north korea in april. this is a place that defines itself with its nuclear ability really wrapped up, in large part, in its own identity. it sees the united states or portrays it to be an existential threat. this is not something where they will back up and back down. they are sentient to the hilt already. are subject to numerous security council resolutions and
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the trump administration has to decide how hard it wants to go short of conflict. which would antagonize china, to put it mildly. you, foreign policy reporter joining us from washington. for further analysis, serving as the dean of international studies at the university of denver, let me ask you what you made of that statement. all 23 words of it. he did not mention south korea. what have we learned from president trump about his attitude toward north korea? first of all, i think he has taken a pragmatic attitude with how to deal with this. it was significant that he sent his secretary of defense jim mattis to the region on his first trip. he met with korean leadership, south korean leadership, and the japanese. to reassure them about the strength of the u.s. commitment
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and our alliance. president trump reached out to president ping to assure him that we will stick with the one china policy. there was a lot of talk that the administration could put that on the back of the table. it was really a dog that was not going to hunt. he has done the right thing there. he had a very cordial and very private personal meeting with the japanese prime minister. the end of that, right after the test, he says that we are behind japan 100%. in a perfect world, i wish he had mentioned south korea as well. all in all, it is a good diplomatic start to a crisis that is not necessarily happening this weekend. it is in the coming years. they will have a deliverable nuclear weapon and it will come on president trump's watch. he will have to explain what
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he's been doing about it. he will have to work with china. he needs a strategy that will include china. and there, he's got to make choices. does he want a trade war? what does he want with china? i would suggest putting north issue-- the north korea first. david: is that country upholding its end of the bargain when it comes to sanctions? it is an economic issue. north korea relies on china for trade. has done more on sanctions and they have done in the past. if you judge them by the direction they have gone, they have gone in the right direction. have they done everything they can do? no. we cannot outsource this problem to china. nor can we solve this without china or without understanding chinese interest. with the deep dive chinese to come up with a strategy that works. i agree with your previous segment. i don't think strategic patience
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times.t it in these norwood president trump want to be known by such a moniker. david: what diplomatic options are left here? a senior adviser to president trump is talking about increased militarism and sending a strong signal to north korea. what would you want the administration to look at? reaffirming the strength of the alliance is important. getting the equipment, the anti-ballistic missile system. terminal high altitude area , it showsstem, fad the south korean people we are putting our best stuff out there. that is our best stuff. we need a chinese strategy. chinese are worried about a collapse in north korea. collapse of north korea, does that mean they would take
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it manage of china? i don't think so. directs a more conversation. veryhinese have been were -- have been very worried about it. there has been a quantitative and qualitative dialogue. we are not going to solve this without china. david: thank you, ambassador christopher hill. at the top of the hour, expecting a joint news conference with president trump and canadian prime minister justin trudeau. we will bring that for you here on bloomberg television and you can watch it on the bloomberg terminal at live go. this is bloomberg. ♪
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david: this is bloomberg markets, trump's first hundred days. focusing on policy and politics in the trump administration. we're coming up on a press conference with president trump and canadian prime minister justin trudeau. i will turn to the bloomberg white house reporter and chief washington reporter. we start with you. after the press conference concludes, he will be on capitol hill having to meetings. and senate majority leader mitch mcconnell. what do they expect to talk about in those meetings? >> it will be all centered around trade, david. the leadership office told us that the bottom line of this meeting is going to see ways in which this new republican controlled congress can work with the canadians in order to craft what many would see as a bilateral trade agreement. course, with president trump withdrawing from the transpacific partnership,
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there is a lot of uncertainty. about what exactly that means for folks, and here in congress with many republicans i am speaking with raising concerns, if you will. you got to remember that a lot of these more moderate republicans are the same types of folks, including speaker ryan, that worked with president on tpp. that is out the window. david: the transpacific partnership, we talked about that. we talked about trade. let's talk about the keystone xl. is that something that will be coming up today? will they be talking about energy policy? >> yes, definitely. in the joint statement that trump and trudeau put out moments ago, energy was one of the points they touched on along with trade, border security, and the unity of canada and the u.s..
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i think the keystone pipeline is to any a silver lining sort of storm clouds brewing around trade. if there are changes to trade that might not be completely beneficial to canada, we will see how things shake out. but on energy in the keystone pipeline, they have that economic benefit there. -- joining us from capitol hill. we look at the east room here. president trump and justin trudeau scheduled to have a joint news conference here. you can watch on bloomberg at live go. this is bloomberg. ♪
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>> it is 12 p.m. in new york, 11 a.m. in san francisco, 2 p.m. in new york. >> welcome to bloomberg markets. president trump and canada's prime minister set to hold a
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joint news conference at the white house. privately at the oval office earlier today and took part in a roundtable conversation that focused on women in the workforce. the visit comes on the heels of japan's shinzo abe. >> for more, let's bring in shannon pettypiece reporting from the white house. today --pared to speak for these two leaders to's the today, they are talking all day and about women and entrepreneurs. what will be the main just here? first big piece will be trade. if they can walk away with some assurances that there is a renegotiation of nafta. canada will not end up with a border tax. i think they want to get some reassurances that trumps push to
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have manufacturing in the u.s. is directed at mexico, china, canada. it will be a huge threat for them. make similard to pushes. scarlet: look at the canadian dollar holding in the range of 130 to 132. we talked earlier about how donald trump and the prime minister justin trudeau also held a roundtable on women in the workforce. did we get any sense of what was discussed. >> i think it was a pretty that economies do better. is for trudeau. it does not have an official
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white house rule. they were not in the room. i'm not sure how that's all playing out. >> trudeau has used some of trump's to distinguish canada's own policies from those. throughout the extreme vetting, the travel ban. multiple times, he said canada is open for business. will there be any kind of tension? what is the nature of that?
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>> they're trying to position themselves. they will try to stay clear of that topic and not really make that a key issue. >> trumps popularity at home is waning a little bit. he's under pressure to distinguish himself and his party's position from donald trump. can you talk about the tension trudeau faces at home? >> it is something that they have dealt with. you try minister of japan is quite popular at home, but there was concerned that if he was too close to friendly to the u.s., it would hurt his popularity. theresa may was mocked the next day in some of the u.k. tablets for being too close and to friendly with this
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administration. it will be a dance they have to walk as long as there is skepticism overseas. >> trumps is also talked about getting the keystone pipeline up and running. with regards to trade, there is opposition. it is here and when you look at the pipeline, it could be sort of the peace they can both agree on. can i have some common ground? >> absolutely. and if there is a negative aspect to trade and renegotiating nafta, there is a positive benefit that can counterweight that about the will get tot canada this administration on trade.
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>> >> let's check in where stocks are. julie: it is participating in the records today. the daily moods have been relatively small. bearing are now in the 44th straight session that that has been the case. theou look at the streaks, simultaneous highs, you can track them. i just zoomed in on the chart because there was more than a decade in between the last cluster of simultaneous highs and the first new that we saw in
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august. when will be 14 occasions all three of the major averages have hit the simultaneous highs. and the momentum as we got past the election. session, a new closing high. making positive comments about the stock today. amazon is also trading higher. it is helping today. the fact that we had this momentum. individuals at home that are trading, or professional traders. all gaining in today's session. the specific story helping a couple of stocks, talking about dupont and come wars which was
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part of the company. settlement for a host of lawsuits related to the manufacturing of the teflon chemical and the pollution it caused. up more substantially. some of the legal decisions and fees. definitely in the case, it looks like a relief rally. we are awaiting president trump and prime minister justin trudeau to emerge. the zimmerli, they will be discussing the economy because justin trudeau's lyrical abuse -- political views are so opposed to president trump. they will be emerging and taking questions as well. >> let's get a check at first word news. 17 a league universities,
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including harvard, gail, and stand for joining forces to wage a legal fight against president trump's travel ban for immigrants from seven mostly muslim countries. ability it ends their to recruit students, faculty, and scholars from abroad that make significant contributions in their field of study. they hope the president understands that russia is not our friend. speaking to reporters in his own state, he said russian president vladimir putin is an enemy of democracy everywhere. senator graham also said he will lead a push in congress to oppose new sanctions on russia for the interference in the 2016 u.s. presidential election. the united nations security council holds an emergency meeting tonight on the latest north korean missile test.
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it flew more than 300 miles and landed in the sea of japan. japan is urging china to take action against north korea. northncern is that the will be able to develop missile technology enough to put a nuclear warhead on one of them. at least for skiers were killed in an avalanche in the french alps today. rescue workers are trying to find five others that were missing. long ander 1300 feet struck in an area of a resort known for its extensive slopes. officials admit the chances of finding anyone else alive are slim. global news to 14 hours a day powered by 2600 journalists and in over 120 countries. i'm mark crumpton. this is bloomberg. scarlet: we take you to the live room of the east room are president trump and canada prime minister justin trudeau are set to have their joint news
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conference any minute now. they were meeting earlier today and will focus on their economic relationship, canada hoping to strike a new bilateral discussions. this is bloomberg. ♪
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scarlet: and there is the live shot of the east room in the white house. we are waiting for president trump and prime minister justin trudeau to have a news conference. they also hosted a roundtable conversation about women in the workforce. people questioning authority issues like immigration will come up. most of the focus will really be on their economic ties. they put out a statement not too
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long ago about it. >> it is if these will be enacted. that they are inextricably linked. kevin: scarlet: the trade the trade- scarlet: function, i said it to united states. canada is number two. most of the rhetoric and focus and conversation has been on mexico. the trade partner by a long shot.
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>> it is one of those things where it is often a very good relationship and not a lot of negative to say. scarlet: the joint statement is that the u.s. and canada are indispensable allies. to what extent that will come up because it has been a topic of conversation when theresa may was here. >> security and defense eight big talking point for trump. his executive orders and policy, nato a big part of this. he wants to make sure that countries are paying their fair share. toulouse as well as the company's -- if the countries are in nato. scarlet: let's go to shannon .bout this context
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what is interesting is, president trump has not paid a lot of attention to canada aside from moving ahead or starting to steps toward moving towards the keystone pipeline. did justin trudeau request this meeting? how did this come about? shannon: i think it was mutual. i do not know who was the one to put the first call in. canada is usually one of the very early first meetings. >> these are obviously two individuals from pretty different worlds. the big generational gap. trump is 70, trudeau quite a bit younger. about anything you have heard when you talk about these guys personalities.
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shannon: out of think they could whatch more different than you said about them having strong and influential fathers. to interruptsorry but we are seeing president trump and prime minister trudeau at the lectern. as go to the east room as president trump gets ready to speak. president trump: prime minister trudeau, on behalf of all americans, i thank you for being with us today. it is my honor to host such a great friend, neighbor, and ally at the white house. a very special place. canada celebrates the 150th year confederation. for americans, this is one of the many milestones in our friendship. forward, very much forward, i must say, to many more to come. the two nations share much more than a border. we share the same values, the same love, a truly great love of
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freedom. and a collective offense. american and canadian troops have gone to battle together, fought wars together, and forged the special bonds that come when two nations have shed their blood together. which we have. times, it iserous more important than ever that we continue to strengthen our vital alliance. the united states is deeply grateful for canada's contribution. to counter the isis effort. thank you. in commone to work and in common cause against terrorism. and work in common cooperation for reciprocal trade and shared growth. we understand that both of our countries are stronger when we join forces. having more jobs and trade right here in north america is better
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for both the united states. it is also much better for canada. we should coordinate closely. and we will coordinate closely to protect jobs in the hemisphere and keep wealth. prime minister, i pledged to work with you in shared efforts including a stronger relationship between the united states and canada. it includes safe, efficient, and responsible cross-border travel and migration. it includes close partnership on domestic and international security. america is deeply fortunate to have a neighbor like canada. have before us the opportunity to build even more bridges.
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bridges of cooperation and bridges of commerce. us are committed to bring greater prosperity and opportunity to our people. we just had a very productive meeting. leaders inbusiness the united states and canada where we discussed how to secure everything that we know the full power of women can do better than anybody else. we know that. i just want to say, mr. prime minister, that i am focused and you are focused on the important role women play in our economies. we must work to address the barriers faced by women and women entrepreneurs, including access to capital, access to markets, and very importantly, access to networks. in our discussion, we will focus on improving the ways our
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government and our governments can benefit the citizens of both the united states and canada. advance theing, greater peace and stability in the world. mr. prime minister, i look forward to working closely with the veryild upon historic friendship. there are incredible ,ossibilities for us to pursue canada and the united states together. again, thank you for joining us. i know our discussions will be for thery productive future of both countries. mr. prime minister. good minister trudeau: afternoon, everyone. thank you ray much for joining us. i like to extend my sincere thanks for president trump for inviting me down to washington. any day i get to visit our
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southern neighbors is a good day in my book, particularly when it is nice and warm compared to what it is back home. we are suffering under a significant winter storm that is hitting our atlantic provinces particularly harsh. i want to send everyone back home i thought -- my thoughts. [speaking french. ] the president and myself have had a very productive first meeting today. we have the opportunity to get to know everyone better. had thetantly, we opportunity to talk about the unique relationship between canada and the united states. those on both sides of the parallel understand the bond in our nation is a special one. no other neighbors are as fundamentally linked as we are. we have fun and conflict zones together. negotiated environmental treaties together, including 1991's historic air-quality agreement. we entered into groundbreaking
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economic hardships have created good jobs for both of our people. canadians and americans alike share a common history as well as people to people ties that bring is completely and totally integrated. by workers are connected trade, transportation, and cross-border commerce. our communities rely on each other for security, stability, and economic prosperity. our families have long-lived together and worked together. , theoften than not victories are shared. just as we celebrate together, so too do we suffer loss and heartbreak together. pillar is oneal of mutual respect. as we know, relationships between neighbors are pretty complex. we won't always agree on everything.
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because of our deep abiding respect for one another, we are able to successfully navigate those complexities and still remain the closest of allies and friends. no mistake. at the end of the day, canada and the u.s. will always remain each other's most essential partners. today's conversation serves to reinforce how important that is for canadians and americans. 35 u.s. states list canada as the largest export market and theeconomies benefit from $2 billion into a trade that tradeplace -- two-way that takes place. middle-class jobs on both sides of the border depend on this crucial partnership. maintaining strong, economic ties is vital to our mutual success.
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look forward to working together so canadian and american families can get ahead. [speaking french] states list35 u.s. canada as the largest export and the economies benefit from the over $2 billion in two-way trade that takes place every single day. millions of middle-class jobs on both sides of the border depends on this crucial partnership. maintaining strong economic ties is vital. we continue to work closely together so that canadian and american families can get ahead. at the end of the day, the president and i share a common goal. we both want to make sure that hard-working folks can go to work at a good job, put food on and take a vacation
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every once in a while. today, we reiterated that our nations are committed to collaborating on energy infrastructure projects that will create jobs while respecting the environment. investing in infrastructure is a great way to create the kind of economic growth are countries so desperately need. vein, we know ensuring equal opportunities for women in the workforce is essential for growing the economy and maintaining american and canadian competitiveness on the world stage. such, the president and i have agreed to the creation of the canada council for advancement of women entrepreneurs and business leaders. it is more than just about dollars and cents. it's about ensuring that women have access to the same opportunities as men.
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advertising the support that our senior business leaders and entrepreneurs. canadian andthe american economies and help our businesses prosper. [speaking french] trump andresident myself have agreed to work together to fight against the traffic of opioids across our borders. opioids is use of nothing less than a tragedy. will do everything we can to ensure the safety of canadians and americans. tillman, president trump, i know that if our countries continue to work together, our people will greatly benefit from this cooperation. time and again, in order to tackle our most pressing issues both foreign and domestic, we must work with our closest allies. standing in solidarity as a
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united voice. the level of economic and social integration that is unmatched on the world stage. canada and the united states will forever be the model of the example of how to be good neighbors. the atlantic and pacific oceans, guarded by respect and obligations as an example to every country and a pattern for the future of the world. my friends, is the very essence of the canada u.s. relationship. i look forward to working with president trump over the years to nurture and build upon this historic partnership. once again, it is a tremendous pressure to be here in washington. you veryhu -- thank much. president trump: we will take a
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couple of questions. scott? scott: thank you, mr. president. you spoke about the desire to build bridges although there are notable philosophical differences between you and prime minister trudeau. how do you see this relationship playing out? whereere specific areas you each decided to alter or amend your stances on those sensitive issues like terrorism and immigration? trudeau, only in its infancy so far, had you see this relationship compared to the obama administration? we just beganp: discussions. we are going to have a great relationship. as good or better, hopefully, than ever before. we have wonderful ideas on immigration. we have strong, very tough ideas on the tremendous problem we have with terrorism.
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when we put them all together, which will be quickly, we will have a group of talented people. we will see some very obvious results. we're also doing cross-border things that will make it a lot easier for trade and a lot better and a lot faster for trade. have technology, great ideas to be implemented fairly quickly. prime minister trudeau: one of the things that we spoke about security andthat immigration need to work very well together. certainly, canada has emphasized security as we work toward improving the immigration system and being true to the values that we have. we had a very strong and fruitful discussion on exactly that. there is plenty we can draw on each other from in terms of how we move forward with a very similar goal. which is to create free and open societies that keep our citizens safe.
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it is something that we are very much in agreement on. good afternoon, mr. president, mr. prime minister. mr. prime minister, can you answer in english and french for us? a follow-on on the question. tosident trump, you seem suggest that syrian refugees are a trojan horse for potential terrorism. premised are hugs refugees and welcomes them with open arms. so are you confident that the border is secure? president trump: we can never be totally confident, but through the incredible efforts already, i see it happening. formally general kelly, now secretary kelly, we have really done a great job. we are actually taking people that are criminals, very hardened criminals in some cases
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with a tremendous track record of abuse and problems, and we're getting them out. and that is what i said i would do. i am just doing what i said i would do when we won by a very large electoral college vote. i knew that was going to happen. i knew this is what people were wanting. that was not the only reason. that was not my only think that we did so well on, but that was something that was very important. i said we will get the criminals out, the druglords, the gang members. we getting them out. general kelly, who is sitting right here, is doing a fantastic job. i said at the beginning, we are theg to get the bad ones, really bad ones. we're getting them out, and that is exactly what we are doing. i think that, in the end, everyone is going to be extremely happy. i will tell you right now, a lot of people are very, very happy right now. prime minister trudeau: canada
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is always understood the keeping canadians safe is one of its fundamental response abilities, that is of any government, something we're very much focused on. at the same time, we continue to pursue our policies of openness towards immigration, refugees, without compromising security. part of the reason we have been successful in doing that over the past year, well -- will coming close to 40,000 syrian refugees, is because we have been coordinating with our allies around the world to comestrate that security very seriously to us, and that is something we continue to do. [speaking french through translator] it is clear that if you want to have a healthy insecure society, safe society, you have to make sure that you maintain and focus on security, and we have welcomed refugees from syria.
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we have been very successful. but we have always taken our responsibility towards security very seriously. and our allies, including the united states, understand this focus very well and have since the very beginning. trump, now that you have been in office and received intelligence briefings for nearly one month, what do you see is the most important national security matters facing us? prime minister, you have been very clear that canada has an open door policy for syrian refugees. do you believe that president trump's moratorium on immigration has merit for national security grounds? president trump: ok, thank you. many, many problems. when i was campaigning, i said it is not a good situation. now that i see it, including with intelligence briefings, we have problems that a lot of
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people have no idea how bad they are, how serious they are. not only internationally, but when you come right here. obviously, north korea is a big, big problem, and we will deal with that very strongly. we have problems all over the middle east. we have problems just about every corner of the globe, no matter where you look. i had a great meeting this week in with prime minister abe of and got to know each other very well, extended weekend, really. we were with each other for long periods of time, and our staff and representatives. but on the home front, we have people that can left our country in, and a want to do that. i want to have a big beautiful open-door. i want people to come in and come to our country, but we cannot let the wrong people in. i will not allow that to happen during this administration. and people, citizens of our
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country, want that, and that is their attitude, too, i will tell you. we are getting such praise for our stance, and it is a stance of common sense. maybe a certain toughness, but it is more than toughness. it is a stance of common sense, and we're going to pursue it vigorously. we do not want to have our country have the kinds of current dust problems you are witnessing taking place not only here but all over the world. we will let stand for it. we will not put up with it. we're just not going to let it happen. we're going to give ourselves that bit of chance so things go well for the united states, and they will go well. thank you. canadainister trudeau: and the united have been neighbors a long time, and canadians and americans have stood together, worked together at home and around the world. we have fought and died together
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on battlefields, world war i and world war ii, korea, afghanistan. but there have been times where we have differed in our approaches, and that has always done firmly and respectfully. the last thing canadians expect down and to come lecture another country on how they choose to govern themselves. my role, our response ability, is to continue to govern in such a way that reflects canadians' approach and be a positive example in the world. [speaking french through translator] primeyou, mr. minister.
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minister, -- prime minister, heard you correctly, you said that canadian businesses, canadian workers, are concerned for their businesses and further work, jobs concerning the renegotiation of nafta. so what guarantees did you get from this government that we will keep our jobs and our hesinesses in t negotiation? [speaking english] andhave announced after a over about the mexican version of the agreement, very little about the canadian one. two short parts, is canada a fair trader? and when you talk about changes areafta concerning canada,
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you talking about big changes or small changes? thank you. [speaking french through translator] is a minister trudeau: it real concern because we know our economy is really dependent on our relationship with the united states. goods and services do cross the border each way everything will means millions of jobs for canadians, good jobs for canadians. so we are always focusing on these jobs, but there are also good jobs, millions of jobs, in the united states that depend on those relationships between our two countries. so when we sit down, as we did today, we will be doing this in the weeks and months to come, we will be talking about how we can -- create goodde
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jobs for our citizens on both sides of the border. during this exercise, we continue to understand that we have to allow this free flow of goods and services, and we have to be aware of the integration of our economies, which is extremely positive for both our countries. and this is the focus we will have in the coming weeks and months to come. [speaking english] thate aware of the fact much of our economy depends on a good working relationship with the united states, good integration with the american economy. in fact, millions of good jobs on both sides of the border the smooth and easy flow of goods and services and people back and forth across our border. and both president trump and i got elected on commitments to support the middle class, to work hard for people who need a
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real shot at success, and we know that by working together, by ensuring the continued effective integration of our two economies, we are to be creating greater opportunities for middle-class canadians and americans now and well into the future. president trump: i agree with that 100%. we have a very outstanding trade relationship with canada. we will between king and doing certain things that will benefit both of our countries -- we will be tweaking it. less severe situations and is taking place on the southern border. on the southern border, for many years, the transaction was not fair to the united states, some extremely unfair transactions. we are going to work with mexico and make it a fair deal for both parties. i think we going to get along very well with mexico. they understand and we understand it you have probably noticed that ford is making
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billions of dollars of new investments in this country. the other day and notes that, because of what i am doing in terms of regulation, lowering taxes, they are coming in with billions of dollars of investment, thousands and thousands of jobs. general motors, likewise, is going to build new plants. fiat chrysler was at a meeting where they are doing the same. -- we have so many people that want to come into the united states. i think it is going to be a very exciting period of time for the united states and for the workers of the united states are they have been, truly, they forgotten men and forgotten women. they are not going to be forgotten anymore, believe me. so our relationship with canada is outstanding, and we're going to work together and make it even better. and as far as the southern border is concerned, we're going to get that worked out at we're going to make it fair, but we are going to make it so that
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everybody is happy. it is very important to me. thank you. thank you very much. thank you, ladies and gentlemen. thank you very much. they're leaving the east room, concluding their news conference where they discussed the need to tweak some terms of the trade agreement with canada. on the top making it clear that it is a much less severe situations than what has happened with our neighbor to the south. as -- itcribed nafta is not the case for how he sees our relationship with canada, obviously talking about the relationship with mexico in terms of trade being much more severe. a lot of talk about security and national issues, as far as military and defense goes. let's go to shannon pettypiece of bloomberg news who is in d.c. they always recovered mostly
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trade, as you expected. an seemed like it was largely agreement almost topics to it what did you make on the focus? was there anything that was surprising? shannon: i think it is that where they came at the end, tweaking and trade deal with canada, not necessarily ripping it up. certainly a different tone there. he brought up all the auto investments that auto companies are making, which is definitely a mischaracterization of what the auto companies are doing here. lot more auto production is done in canada van in mexico, by far. so trump up actually, if he really wanted to bring, increased u.s. auto manufacturing, he could go after automakers in canada and say to
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stop investing in those plans and start investing in the u.s. i am not sure what he's doing that, but because the relationship is so strong and close between the u.s. and canada, it sounds like canada is continuing to get a softer touch on trade than mexico certainly is. scarlet: the president went out of his way to contrast canada and mexico, saying that trade is different than the unfair trade system with mexico. there were plenty of questions about treatment of refugees, syrian refugees, and open borders. they basically agreed to disagree, saying neighbors do not always agree on everything. canada has its stance. the u.s. has its stance. line fromhat was a trudeau, saying neighbors do not always agree on everything. that was a diplomatic way to stare around the question. when a reporter asked trump about as different stance and concerns about security of the northern border, he did point out things that homeland spinrity are doing, able to
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that question to get into what he has been doing to get criminal immigrants, immigrants with a criminal record, out of the country, increase enforcement by ice. to talkthe question about his very large electoral college victory and that he is doing with the people say i getting the criminal element out, without actually talking about syrian refugees and the concern that they could be coming over from the northern border into the u.s., given canada's policy. that is how he dodged that immigration question. scarlet: we will wait to see the results from these trade ideas, where they have said they have great ideas that will be implemented soon. jenny pettypiece desk shannon pettypiece, thank you. still ahead, republican senator orrin hatch of you told will join us with his thoughts on the president's phenomenal tax plan. we will ask him just how much
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input he has had on the president's plan so far. from new york, this is bloomberg. ♪
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oliver: this is bloomberg i amts to it scarlet: scarlet fu. oliver: the saudi government told opec to cut oil production by the most in eight years, going beyond its obligations to balance a world market. the cuts are not having their intended effect. oil moving downwards, prices slipping lower. joining us this chris kelly, an analyst with janus capital in denver. as we see opec nation comply with these rules, perhaps going above and beyond, at the end of the day, how much of a floor will this put under oil prices if we keep seeing compliance like this? guest: i actually think it is a different floor -- a decent
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floor appeared it is probably just a cell the news event today. the actual numbers were pretty good. it was estimated about 90 per is a compliance, coming in closer to 93%. obviously, the saudi's are saying they cut 700,000 barrels a day, as opposed to the 500,000 that opec actually put out. that by and large, the number is really good. collectively, the numbers are good enough that i think we will continue to work out -- down the excess inventory we have built over the past two years. scarlet: we got reaction from the uae minister in response to the saudi production cut. >> i am very happy with the compliance. i think the countries are committed. hope that can be, in the months to come, higher level of compliance to the numbers mentioned.
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scarlet: i think a lot of the market is a press with the fact that non-opec members of held on and fulfilled their commitment to cut back on production. do you see this as sustainable? guest: i do. it will be for several months, obviously, kind of what they initially committed to. then we will have to see if they are willing to attend a this is the market has not clear to the level they thought. june, thet into may, summer, we will have a much better feel for where the market is and where opec and non-opec need to be as we move into the fall. oliver: give an interpretation as to maybe why the saudi's would go the extra mile and cut even more. why would they take an extra step here? does it tell us anything about their own production rate? is that reading into it too much? guest: no, i do not think you are reading into it too much. generally, think they want some stability to the oil market. they are trying to float an ipo over the next 12 to 24 months.
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ideally, i think they would like to see oil in the $50 to 60 dary -- $60 a barrel range before the appeal. i think the intentions or well advised and an indication of how serious they are and how much higher they think they need oil prices, and that will come into the fall. thatr: a good reminder they have a massive ipo coming. the price of oil certainly does help if it goes higher. kris kelly, thank you so much be at scarlet: three weeks into his administration, president trump's cabinet is starting to take shape. stephenate will vote on mnuchin today, and this vote is expected to break down along party lines here at joining me is republican senator orrin hatch of utah. senator hatch, you're the most senior republican member of the finance committee. once the cabinet confirmations are complete, what is the first
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order of business for senate republicans? a lot of bloomberg estimates are waiting for the tolls on the long-awaited fiscal stimulus, tax or form, infrastructure spending. democrats are delaying every cabinet pick. this is the first time in my 40 years that either side has done that to the other side. in the case of mr. much bending -- of mr. mnuchin, holding it up is without honor. he is a very outstanding guy who i think can pull this country out of the messages and. i think we're going to get into also -- taxbut reform but also all kind of other issues that are extremely important, including issues involving international trade. scarlet: on tax reform, the president teased everyone with this promise for a phenomenal tax plan within the next few weeks. that seemed to take some of your
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colleagues in the senate by surprise, a little bit off guard. what details did the white house tell you about the outline for this tax plan? senator hatch: i still have to get all the information that he is going to give. has beeng is he listening carefully to some of the things i have been saying and that paul ryan and others in the house have been saying. he knows what we have got to do, and we do need to do tax reform. i just hope we can get our democrat colleagues out there and have them cooperate and help us to do it. scarlet: you said you need to get more details. do you think the white house is not communicating sufficiently with other branches of government? senator hatch: he has only been there about three weeks. [laughs] expecting a lot of him. yes, i have been down there a couple times, one-time for about an hour, and we have discussed tax policy.
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of course, we have been held up this whole time from cabinet officials that we need to get in, because the democrats are just delaying, delaying, delaying, delaying. i think they are going to make the first 90 days of mr. trump look bad. well, then we will talk about the second 90 days. i think it is crazy what they are doing. a filibuster for every nominee, even on they know the nominees will make it through. it is wasting time. why not understand fully they are doing this. i could see it if they really dislike one person, but to do this to everybody is just beyond the veil. scarlet: leaders a proposed changes that rely on a border adjusted tax, which would tasks domestic sales it imports. imports would be exempt. what is your view on the proposal? senator hatch: we are going to look at it very carefully once
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when they come out with their novel approach, and we will take a really good look at it. i have real questions about it right now. maybe they will put it in such good language that it will be something we can all support. i am going to be looking at a very carefully, because that is going to be an important part of what the house is going to do, i guess, and i have great faith in this bigger the house and, of course, the chairman of the ways and means committee. they're really good people. hopefully we can come up with something that will get this itntry moving again and get off its dime with regards to taxation. scarlet: what about in the senate? senator hatch: i do not know what it is, that we would look at anything. we will have our own viewpoints as to what should be done, and we might want to amended. in ais the way it works bicameral legislature. we will look good a very
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carefully. whatever they send up all be just fine. but i do have questions. scarlet: what is your first question then, your most pressing concern? senator hatch: there are a lot of questions. i would say the real question is, can we do this properly without increasing taxes or expenses, increasing costs on american citizens? questionhat is one that has to be answered. there are a number of others. scarlet: what kind of responses have you heard from companies on this border adjusted tax issue? how would you characterize the volume of responses you have gotten? senator hatch: some companies will have it be very detrimental to the bottom line. for some companies, in might help their bottom line. you are going to have different points of view on some the that significant no matter what you do. so you just have to do the best. that is why you have a bicameral legislative process, because the
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house might love some language that the senate might not or vice versa. , you can get together figure it has got to be a pretty good approach. scarlet: the president signed an exec in order to begin examining which parts of dodd-frank and other regulations, like the fiduciary role, can or should change here it is there any provision worth preserving? senator hatch: not in my eyes. i think dodd-frank is worse than obamacare, one of the worst bills that has ever been passed through congress. i think it is part of the reason why so many people are having financial difficulties today in this country. it was an overreach in every way. more and more requirements. more and more paperwork. it is just incredible. i was with one of my bankers in alt lake, and he showed me
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four-foot stack of documents that they have to fill out just to meet the dodd-frank requirements. what do these smaller banks do in this country when they have to do something like that? they are putting them all out of business. white frankly, it is unbelievable to me that -- quite frankly, it is unbelievable to me. scarlet: what regulations should place or should there be to make sure there is not a financial crisis? senator hatch: we know that there needs to be legislation to require a certain review of the banking system in our society, but it does not have to be legislation that kills the banks, especially the small neighborhood banks or small state banks they cannot afford to deal with the paperwork burdens and are operating quite well anyway. to treat all these banks like they are a bunch of crooks and you have to watch everything they do is, i think, beyond the pale.
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to treat them as the we want to know the significant things in the business, the zynga begin things that they should or should not do, that is ok. the dodd-frank is way beyond that. the paperwork burden on that is unbelievable. and most small banks will have trouble meeting it. scarlet: senator hatch, you mentioned the democrats' tact -- tactics on the president's minis . i wonder how much pressure you are under to change senate rules for the supreme court nomination or even legislation? would you support lowering the 60-vote threshold? senator hatch: we are not going into that. all i can say is that i know gorsuch is going to be on the supreme court. we will get him on the supreme court. i think good minds here will get
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rid of this partisanship and allow us to put him through by whatever votes we need. we have been able to do that in the past. democrats understand that. if they want to play this game in the future, it is a very dangerous game to play. and we're not going to put up with it. scarlet: i know your term ends in 2018. you have expressed interest in serving on the supreme court. lindsey graham has suggested you as a nominee. is that something you would seek? senator hatch: [laughs] even in the early part of my senate service, i told them i did not want to do that. the dz circuit court of appeals as a stepping stone, and i said, no, i am in the senate, and that is what i came here to do. people think that is sending a lot to do, but it is not. scarlet: senator orrin hatch, thank you for your time. oliver: it is 3:00 p.m. in new york and one hour away from closing of trade.
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let's check on markets. julie: amidst the politics talk, markets are back in rally mode, fifth straight session that the spicy bank -- s&p has risen. there are records in today's session as with the optimist and about the reflation trade, so-called, coming back into effect. look at the bloomberg here. we have seen a broadening of the groups gaining today. earlier, we saw some defensive groups lower. now it is just energy, slightly lower, as well as telecom stocks, after verizon announcing an unlimited data plan. industrial him attack, materials on the list about performers. industrials, tech, and materials on the list of out performers. apple shares up about 1% today, about 15% year to date, trading at a record. positivee some
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commentary out today from ubs and goldman sachs. the ubs analyst saying that they view apple services businesses like paypal, it would be trading 10% higher. look at the bloomberg once again for perspective. i used financial analysis to look at the revenue segment. the orange bars are the biggest portion of the revenue, the iphone. green is services, which has been steadily climbing. in the last fiscal year, it accounted for 11.3% of the company's revenue, a growing portion. and the canadian dollar, in the wake of the press conference by president trump and prime minister trudeau of canada, we saw the canadian dollar rise a little bit. canadianhe dollar-dollar cross, so not much change, .1% fall in the dollar versus the loony here today. oliver: julie hyman, thanks so
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much. scarlet: let's check your headlines with emma chandra. emma: president trump and canadian prime minister justin judo had their first meeting at the white house today. they held a news conference after. president trump said the u.s. and canada need to work together to combat terrorism. president trump: in these dangerous times, it is more important than ever that we continue to strengthen our vital alliance. the united states is deeply grateful for canada's the counter isis effort. emma: they both promised to work tirelessly to provide growth and jobs for both countries. hean's prime minister says thinks the u.s. approach to north korea will be stricter under president trump. he spoke after meeting with the president. over the weekend, north korea test fired another ballistic missile. abe says trump wobble consider
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all options. in northern california, good news for a most 200 thousand people urged to a great because of a dam emergency spillway that could fell. overnight,ped reducing concerns that the spillway could break and send a 30 foot wall of water. killed and 16ople injured, and passengers were senior citizens returning from a tour of cherry blossoms. 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: former aig ceo in greenberg has reached a $9.9 million settlement in a high-profile case the drug on for almost a dozen years. betty liu is standing by with mr. greenberg to discuss the settlement. betty: i am with hank greenberg
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here. great to see you again. you, whichuestion to i'm sure you have been fielding all we can lock, why did you decide to settle? mr. greenberg: we agreed to do mediation. we have been working for two months. betty: ken feinberg? mr. greenberg: yeah, we went back-and-forth. the ag agreed to mediation, so it was finally done. that end did you think it was going to get done during the process? hardreenberg: it was very to say. betty: are you happy with the settlement? mr. greenberg: i am glad it is over. it has been going on for too long, 12 years. a lot of people spending a lot of money. think about that. it is over $9.9 million. several hundred million dollars were spent.
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betty: on your part? mr. greenberg: on our part, probably about $200 million. for $9all to settle million? mr. greenberg: yeah. betty: what does it tell you? mr. greenberg: how unimportant it was here at is just a disaster in new york. betty: that is what spitzer used against you. mr. greenberg: a great company was virtually destroyed. thousands of people lost their jobs, good paying jobs. we were a leading company in the world in 137 countries, a national asset. betty: and now this. mr. greenberg: it is a shadow of what it was. betty: are you, you are running cv start now. you continue to accelerate the growth.
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so settling this lawsuit, what does that allow you to do before or doesn it not make a difference? mr. greenberg: i have more time. betty: [laughs] that is true, but are the things you cannot do before because of the case? mr. greenberg: knowing have time to pay attention to it, more time now. ag office, when they issued a statement on friday, said, essentially, this is -- to paraphrase it, essentially, finally, hank greenberg admits to these allegations that we have been pursuing against him for the last 12 years. and you and your lawyer came up and said that is absolutely not true, we did not admit to anything. so where is the disconnect here? mr. greenberg: the ag signed and agreed to the wording of the agreement in a settlement.
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they signed it. betty: and that wording did not say -- mr. greenberg: anything like fraud, no word of fraud or anything. betty: no admittance of fraud? mr. greenberg: there was no fraud. go off thethey just reservation in this statement on friday? mr. greenberg: yeah. betty: they reiterated their statement on friday pyramid's to: they are wrong. ready copy you are going to continue the defamation case against eliot spitzer. where does that stand? mr. greenberg: it is in the courts. we're waiting for the appellate court. betty: are you relieved that this is pretty much behind you now? mr. greenberg: relieved is not the term. it is i am glad the truth is coming out. i feel sorry for the thousands of people that lost their jobs.
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i am sorry about what happened to aig as a result of all that. i am sorry to the loss of the country to a great asset. it is a disgrace. betty: whitey you nothing more companies are behind you on trying to get -- why do you more companies are not behind you on trying to get rid of the war and act? -- greenberg: they do not betty: you weren't that the martin at makes it dangerous to do business in new york state, right? greenberg: absolutely. betty: why is it not resonating? mr. greenberg: it does in some parts. general the last two, i think the third one, wants to become governor. and that is wrong. betty: you think business is
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afraid? mr. greenberg: there should be a law that at the attorney general's level, you cannot run for another public job for several years. instead of spending your time trying to be governor. you try to make headlines in doing that. betty: i know you have had a position for quite some time. you mentioned in your statement about how it is a shame about what happened, and aig was a national treasure. employees, 100,000 and now they say it is essentially a shell of a company. how do you think peter hancock is meeting the company? -- leading the company now? i know iserg: all that their shrinking the company. i am sorry to see it happen.
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ever is a long time. i don't know. it depends on the leadership and the market, many things. but leadership is the important part. scarlet: thank you so much for joining me today. hank greenberg, the chairman and ceo of cv starr. scarlet: thank you for the conversation oliver: coming up, the senate is poised to get from steve mnuchin as treasury secretary here and how the leadership vacuum at the treasury department has been affecting u.s. economic policy. this is bloomberg. ♪
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scarlet: this is bloomberg markets. oliver: time now for the bloomberg business flash, some of the biggest business stories in the news. dupont and his former unit has agreed to pay over $670 million combined to settle personal injury lawsuits related to a teflon tim called a polluted water supplies in west virginia and ohio. will be split evenly between the companies and 3550 claims.out both companies deny any wrongdoing. facebook is adding live games growing streaming sports portfolio. the social network where broadcast game starting saturday and running to the playoffs. commentary will be english on facebook screens and it will only be allowed in the u.s. neither party will disclose financial terms of the agreement. that is your bloomberg
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business flash update. scarlet: act of politics, the senate is expected to confirm stephen mnuchin as treasury secretary later today despite complaints from democrats that he failed to protect homeowners from unnecessary for closures g.lobal news 24 hours a day, the delays. senator hatch: it has been without honor, as far as i am concerned. he is really a very outstanding guy who could help pull this country out of the mess it is in. scarlet: let's head now to kevin cirilli on capitol hill. senator hatch called it without honor. nevertheless, we know that mr. mnuchin will be confirmed later today. looking ahead to the work needs to do, it has really been gerry cohen, former president of goldman sachs, doing the heavy lifting when it comes to economic policy. gary cohn ask
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chairman of the national economic council is following a long line of tradition, if you will, of people in that role in both republican and democratic administrations in terms of how they lead the pack, if you will, in crafting economic policy. both gary cohn in stephen mnuchin have met together and sometimes separate with the house financial services chairman on a variety of issues, including things like walking back portions of dodd-frank, and getting started on tax reform. during stephen mnuchin's confirmation hearing, he said that he was going to be the point person on tax reforms. on friday, gary cohn said he would be the point person on aviation reform. different economic agenda items and merging in terms of who will be leading what. but the sources i speak with on that these arey two people who, as former goldman executives, are working in tandem with each other and
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are very much on the same page. about the typical relationship between the head of the national economic council and a treasury secretary, is sort of combining of forces. is it unique? is this a common sort of combination of groups where you have the secretary and national economic council? kevin: you typically have the chairman of the national economic council as someone who is crafting broader policy him a broader messaging strategies for the entire economy, someone who is very outspoken in terms of gauging the metrics of how the economy is either growing or shrinking. and then the treasury secretary is typically someone who oversees regulations in terms of working with the various other agencies and other folks, in terms of implementing some of the laws and going over the
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financial regulations. over the weekend, we saw it was announced that they passed would bexecutive that serving as an undersecretary position, again fitting in with trend of financial executives joining this administration. i would anticipate later tonight, when stephen mnuchin is confirmed, as we heard from orrin hatch, after a long delay, they will want to hit the ground morning -- running. one source said chairman hensel is anticipating that he will be able to introduce aspect of the financial choice act, the dodd-frank walked back act, as early as this week. that is following direct conversations with both gerry cohen and steven mnuchin. scarlet: interesting, so we could see action later on this week. give us more color into the relationship, the dynamic between the two. they both worked together goldman sachs.
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i wonder if one is seen as the mentor to the other. can you tell us more? kevin: gary cohn is the senior executive, and i think the comparison would be to compare him to ruben, if you will. look, steven mnuchin has a long history with president trump. this is some one who joined his campaign at a time in which many were increasingly skeptical of just how serious of a candidate president trump, then mr. trump, would become. so steven mnuchin comes from hollywood. he has deep dealings in terms of producing films. he has that celebrity background that fits well with president trump's political brand. gary cohn is much more traditional in the business since and is someone with a bit more political experience. when you take them together and throw people like david malpass
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into the mix, this is a team that is shaping up to be what donald prop with help -- what president trump would hope. are alreadyhe left trying to portray them as nothing more than big business, ,ig banks, more of the same trying to hurt small businesses. scarlet: thank you for framing that. our chief washington correspondent. oliver: breaking news. popeyes, the owner of the restaurant chain, shares are popping after trading was briefly halted. no real clear reason for the jump at the moment. the consumer discretionary index is far and changed compared with that. we will be watching that. popeyes up about 10%. this is bloomberg. ♪
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all of her bloomberg markets. scarlet: times for options insight. is a: joining me today member of mkm holdings. we have been talking about waiting for the volatility to come back. you said people are sort of gaming out various scenarios or instances where it might come back. guest: yeah, that is a lot of the conversation on the street. u.s. equity volatility seemingly on its deathbed, but we know that will not last forever. there will be another shock. our best estimate is it is probably around mid-march. shocksased on prior dating back to the last couple years. last conversation is looking for an example, janet yellen speaking before congress this week.
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and the dot plot. does she turn march into a life fomc meeting? julie: some are pointing to that direction. right, a lot of the conversations are but where we could sort of manufacture some volatility. if not this week, it probably goes to the next event, fomc mid-march, the french election. that is a lot of the conversation. today,let's look at looking ahead to marriott earnings. the travel industry, which has been doing relatively well, although, are we going to get commentary around uncertainty for the full year? guest: it is worth looking back at how we got to this. as we said, market goes up seemingly every day. about 70% of the time, as we counted, year to date, not a lot of hedging going on.
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but hedging is really a continuous process, and we want to take advantage of what the market gives us. so it is a good time to look at stock replacement. ,arriott is one of the names and the stock is up about 30% since last november. does not give big dividends. it is not a name you're going to sell stock and put on a synthetic position. but the report earnings on wednesday, and we cover it with our analyst is a constructive view of the lodging sector overall. and most importantly, as we we look at2017, corporate travel transit strengthening. we have about 13% upside. we want to participate on the long side. but it is also an opportunity to take some profit and create the same economic outcome with significantly less capital. julie: what is the structure of
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the trade? guest: we would go out to july spread.a 90 $100 call au pay about 2 -- there is playoff, and we have an idea dollar price target to it we get an idea dollars to $100 or so, you realize the 10-point spread. it is a nice way to manage risk but stay long. julie: all right, we will be watching this marriott earnings. scarlet: thank you. coming up, an economist from uc berkeley join us to talk about global trade policies and what the trump administration gets wrong when it comes to nafta. this is bloomberg. ♪
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[ alarm clock beeping ] weather. ♪ [ laughter ] cartoons. wait for it. [ cat screech ] [ laughter ] ♪ [ screaming ] [ laughter ] make everyday awesome with the power of xfinity x1...
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hi grandma! and the fastest internet. [ girl screaming ] [ laughter ] you're a funny guy. best of the oscars. funny how? how am i funny? scorsese finally wins. could you double check the envelope? show me best picture. what's the difference? show me best actor. i do not take tonight for granted. thank you so very much. get all the greatest scripted and unscripted oscar moments on xfinity x1. the oscars, live sunday, february 26th 7eâ4p on abc. >> let's get the first word news this afternoon. national security adviser michael flynn apologized today to vice president mike pence about his pre-inauguration authorization with the russian ambassador.
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he has apologized for saying the u.s. ties never came up in conversation. it has been reported pence accepted the apology. donald trump has met with the south african president about trade ties and stability in africa. he said they talked about this on the telephone, read confirming -- reconfirming the strong commitment between their nations. there are many companies operating in south africa with strong american ties. perhaps confirm the treasury secretary choice. that when thelain man run west bank, he did not save people from unnecessary foreclosure. he said he would help with refinancing to keep houses. begunited nations has sending out formal invitations -- invitations to geneva.


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