tv Bloomberg Markets Americas Bloomberg March 1, 2017 10:00am-11:01am EST
vonnie: we will take you from new york to london in the next hour. stories out of washington, d.c. and paris. here are the top stories we are following on the bloomberg. dow, start out of the 21,000, as in u.s. stocks surged to new highs. optimism about the trump agenda helping to lift financials and industrials. how can president trump start to implement his agenda following last night address? is there suddenly any reason for the fed not to hike this month? , awill ask austan goolsbee professor of the chicago booth school. europe, francois hollande plans to stay in the race. after facing charges for misusing funds. will this boost the marine le
pen candidacy? we are 30 minutes into the trading day in the u.s. and we know that we have surpassed 21,000 on the dow. abigail: indeed, we have. we are looking at a big risk rally. all are trading sharply higher. and was just mentioned, the dow is above 21,000. the second fastest 1000 point gain. we have the dow having its best day since december 7. lots of bullishness here. a continuation of the trump trade and the inflation trade. after the speech last night to congress, it was policy and detail light. so we don't have the details but the over idea -- but the idea of the overall re-inflation trade. when we happen to the bloomberg , the top yellow line is the 1% move up and the
bottom yellow line is the 1% move down. yesterday was day 55 without a move up or down. the longest stretch since 2014. that here we are, up more than 1% so perhaps today will be the day to break that holding pattern. a stock that has brought record after record, today being another record. up seven basis points. a huge move up represented in bread telling us that haven bonds are selling off. that is concerning the risk on rally for stocks. some of it could be the re-inflation trade around trump that also, amazing, the world interest rate probability, the probability that the fed will hike rates in march jumped yesterday to 82%. was 40%.o it investors are thinking that that meeting will be live. yields are backing that up.
not surprisingly, the best sector on the mark -- on the day is the banks. jpmorgan, bank of america, 500group -- the s&p financial sector is at the highest level since 2007 and jpmorgan and goldman sachs are trading at new record highs. mark: a similar story here. it is banks beating estimates and's that the fed will raise rates. we look at the interest rate probability has moved towards 80%. resources, the reflation trade boosting miners. every industry group is rising today. the stoxx 600 biggest gain since january 25 and we are at the highest since december 2, 2015. all i need to tell you about is energy -- is italy's biggest energy group reporting numbers that beat estimates.
driving of numbers from production. conoco is enjoying the boost to income. of the last majors to release earnings, that combined with cost cuts and asset sales generated the first profit since the 2015 year. reported fourth-quarter earnings that beat estimates. the operator of food lion and stop & shop reduce costs in the u.s. to offset inflation. the chief executive orchestrated this merger between them to boost the presence in the united states. they are struggling with food deflation. shares are up today. today.buyers shares biggest a klein ever down by 6.7%. a 6.4%s, sold at discount. it will help bayer pay down
debt. they have bigger things on the cards. the takeover of monsanto. the $60 billion takeover of monsanto. vonnie: thank you for that. in his first address to congress, president trump delivered broad promises. president trump: the time has come for a new program of national rebuilding. spent approximately $6 trillion in the middle east. all while our infrastructure at home is crumbling. with that $6 trillion, we could have rebuilt our country twice. i will be asking congress to approve legislation that produces a one trillion dollar investment in infrastructure for the united states, financed through private and public capital, creating millions of new jobs. this effort will be guided by two core principles -- by
american and higher american. vonnie: joining us now from chicago is austan goolsbee. he served under president obama. on the pathuestions forward for policy, competing interests in the gop. we didn't get clarification on that. and yet the economy seems to be requesting an interest rate hike this month. does it get one? has been think the fed itching and wanting to raise rates for some time. the chance that the fed moves and that the market looks at conditions and says, you know, the growth rate is kicking up a little bit. the job market -- president trump takes over and we are close to full already. we saw last year wages start to rise. so i think there is a decent chance we get an interest rate
movement. vonnie: this all with so much murkiness in washington. competing interests in the gop. ryan and whatever you are a cone is coming with. if you were advising president trump now, and obviously you have advised presidents in the past, but would you be telling him? fromn: kevin hassett comes the paul ryan wing of the republican party. so i would imagine that kevin is telling the president, advising and pushing for corporate tax reform. a big focus over the years. the issue, as you highlight, is that there are a lot of big divisions when it comes down to the details. the so-called border adjustment tax effectively gets rid of corporate income tax and replaces it with a tax on consumers. and that will be very controversial. even if there are reasons why you would want to do that.
reducing the tax on production and increasing it on the consumers. the consumers are going to notice. retail, gas stations -- stuff like that. they have already noticed. so i think you will have a hard time pushing through some of the details that president trump touched on with a thematic level. i thought he did a recent -- i thought he did a decent job, actually. this was of the tone of his inaugural address or the first month in office. because a lot of the things he said, i think the democrats probably would agree with. a would kind of be on board. he wants to put a focus on having fewer wars in the middle ont, putting the focus rebuilding america, i think the are a lot of people who would agree with that. mark: on that topic of rebuilding america, we saw a figure of $1 trillion over 10 years. what is doable?
be spentd that figure on him for structure and how will it be paid for? austan: well, i am not at all convinced they will be able to do much on infrastructure, because you saw there was a subtle change of wording in what trump said last night about infrastructure. through the campaign, he said his plan was for $1 trillion of infrastructure and there was a subtle change which was -- now, the plan is to enable $1 trillion of infrastructure, which i think means something like a tax credit. then the scramble will be trying to get the project, your private project, to count as infrastructure for that purpose. think, they have already said, the administration has already said, that the source they want to have for their program is the one time tax on repatriated foreign earnings. a high, a firmts
up a rebound on how much it could be. and i think that is $100 billion-a $150 billion cost to the government. so i think the details on that one might be smaller than what the advocates had hoped. mark: on the subject of details, it was lacking, this speech yesterday, in details. when our investors going to lose patience? dow at 21,000. investors have been rallying. the tax plan could be put back and you have to deal with health care first. we know that. there is the timeframe of august. what is the delivery of infrastructure and deregulation, pushed back? when do investors lose patience? austan: that is an important question. 13%-14%about the last on what has been an
unprecedented stock market rally over the last seven years. the stock market is up 220%. sustain 200% plus for two years, maybe investors will be a little patient in trying to get details or the legislation through. i'm not sure. i think you are right that eventually, if they can't agree on an obamacare repeal or replacement, if they just go back and forth, saying no we don't and how can we pass this and they are not able to pass it , and if infrastructure is, as they have adjusted, contingent and waiting on the first two things to get done and they don't get done -- i think, ultimately, the there are a number of investors who will say -- wait a minute. maybe it isn't as positive as we wanted. the second thing i would point out is a disproportionate chunk ,f the increase in market value
as you observed, is just the financials and just the banks. something like 20% of the increase in the dow was just goldman sachs, for some time. think some those, i of that increase that the financials are up 30% is due to them saying hey, they will take the shackles off of us and we can go back to making money like we were. in the golden days. manufacturing, bpce deflator up year over year. very close to the target. it is only one .1% year-over-year last year. obviously we have financials and assets doing well. if the fed moves in march, which what are thekely, chances of the fed rolling that move back to later in the year? austan: it's possible.
and i will be interested to see. when the minutes come out from this fed discussion, i will be interested to see what the governors are saying about that topic. by an objective measure, there is a lot of fiscal uncertainty. we don't know if it is going to pass and we don't have the details of what magnitude they are talking about. i don't know that there is that high of a chance that they would literally have to reverse themselves. my observation of the fed is that they feel like conditions the last 18-24 months, been improving at a somewhat steady basis. so they are ok with raising a little bit now. and they would actually like to keep raising, but that might end up getting put off, i think, if the fiscal measures do not come through. vonnie: on obamacare, the
president talked last night about new entitlement. he talked about being able to buy insurance across state lines. how much of this gets agreed-upon in the gop and passes at some point in the year? austan: i think, perhaps, very little. nation, not just the democrats, thought through all of those same options that they are talking about as a replacement to obamacare. the four obamacare ever passed. and there are major problems with each of those. for certain, it would lead to millions of the people who got insurance coverage since obamacare to lose that coverage. and so i think there is going to on twotantial push back different sides, within the gop. one side, the people who are up for election and who are going out to the town halls and ears chewedtheir
off by people who got insurance and don't want to lose it. whoother side, the people are saying, why are we talking about replacing anything? why are we talking about tax credits? let's just repeal this and be done. and i think that is not even close to being resolved. so i think we have many miles to go on the prospect of whether they can truly repeal obamacare. mark: on the issue of replacing, let's get to the fed and the fact that donald trump has to replace three fed governors and eventually a fed chair. i'm trying to make a clever segue. thoughts, briefly, on the makeup of the fed in the next 12-18 months, and the importance of that? austan: tremendously important. the stars have really aligned for president trump, that he
could have maybe up to five governor appointments, including a vice chair for supervision and a not-too-distant of a time, the chair of the fed. i think you will have to see , the trump people are going to put some attention to that. thus far, we have heard virtually nothing. they haven't suggested any names or's adjusted any style. what do they want from the fed. the last we heard about the trump opinion on the fed was really in the campaign, criticizing them for keeping rates low. anhink that is going to be apparent tension. i wouldn't be surprised to find that over the coming appointments, the trump administration discovers what many previous administrations have discovered, which is -- when you are in office, you like the fed to be loose and not
tight. so i think for people thinking -- two theoint five fed, i don't think that will happen. austan our thanks to goolsbee, former advisor to president obama. coming up, paul krugman joins for a full 30 minutes today at 3:30 p.m. eastern. we get his thoughts on trump's remarks to congress. and on the chair, janet yellen. eye on theep a close dow. it has broken through the 21,000 mark. it seems like yesterday it broke through 20,000. bloomberg will be keeping a big eye on this development today. this is bloomberg. ♪
i ame: from new york, vonnie quinn with mark barton in london. this is "bloomberg markets." over.g us is all yesterday we saw fed fund futures increase from 30 points up to 80 points. is a march hike priced in? could this reverse quickly with a disappointing jobs report? oliver: it started moving over the last week. --t monday there was a 30% last monday there was a 36% chance of a hike. yesterday afternoon we saw that go to 80%. so the chance of a march hike is increasing. with that being said, there is a lot of job market -- going on
with the fed and i don't expect that to change. talking onet yellen friday. and we have payrolls friday. those two events will be very crucial in seeing whether or not we get a rate hike. are traders talking about most when it comes to the president's speech last night? a big sigh of relief across the board. he seems to stay on message. and you can tell by the stock market, the stock market loves it and that is putting a lot of pressure on some of the precious metals. gold really taking a hit. we have been overextended because we had such a nice run but wefirst two months are looking for a little bit of a pullback. 1215 as a buying opportunity. that represents 50% of last year's trading range and the 100 day trading range.
-- 100 day average. we do have the french election in two months and it should keep a floor in the gold market. vonnie: where else are you seeing opportunities, it given that certain asset classes are overextended? oliver: i think there is a lot of opportunity in the energy sector. gasoline, natural gas or the crude oil market. we are watching crude oil closely. it traded in the tightest range in february since about 14 years ago so that is significant. volatility has shriveled up. below is volatility in the crude market in two years. when you have low volatility, you get the opportunity to buy cheap. isimately, we think there more on the sell side pressure that could come into the markets and once we get a technical breakdown, we could see a lot of funds leading to long liquidation.
they have a -- if we break the low with the key technical's tomorrow, we could see a flash for the asset. vonnie: we appreciate your time. oliver sloup, thank you for joining us. mark: keeping a close eye on the dow today. the s&p 500 and nasdaq are also gaining more than 1% today. all three are trading at record highs. this is bloomberg. ♪
bridgewater associates by mid april according to a client note. he says he has temporarily stepped back into management 10 transitionto help the co-ceo role but he remains the chief investment officer. ise again, ray dalio stepping down from managing bridgewater associates. mark: still ahead on "bloomberg markets," there is even more drama to the french race. fillon says he will not resign. this is bloomberg. ♪
president trump's address to congress last night in a joint session, but first, breaking news on oil. crude oil futures are up half a percent. the department of energy just releasing them now and it is a little bit of a surprise. we were expecting a build of 1.6 million and we are getting 1.5 million. crude inventories were higher. build of half a million barrels when we were looking for a decline. coming off a heisman it comes to the future contract, still up about $.26 on the day. 1.7%zation coming in at for the week. that is a better number than we were looking for as well. all in all, better data for crude oil. we will see if that weighs on the price of oil as we move through the session. let's check on "first word was quote news.
emma chandra has more from washington, d.c. emma: it was a different sounding president trump who spoke to a joint session of congress. of prioritieslist that were familiar from his campaign, ranging from a military buildup to a big infrastructure program to tougher negotiations on trade. i believetrump: strongly in free trade, but it also has to be fair trade. i am not going to let america and its great companies and workers be taken advantage of any longer. they have taken advantage of our country. no longer. emma: the president said there is a chance for real reform on immigration, but he didn't back away from any of the top statements he has made so far. those given the high honor of admission to the united states should support this country and love its people and its values. we cannot allow a beachhead of terrorism to form inside
america. we cannot allow our nation to become a sanctuary for extremists. emma: meanwhile, according to a white house official, president trump's new travel order will remove iraq from the list of countries whose citizens are banned from coming to the u.s. for 90 days. americans appear to be feeling the pinch of higher prices hit consumer spending rose less than expected in january, up .2%. a pickup in inflation may limit faster growth. british prime minister theresa may's government is set to lose a key vote in the house of lords on brexit. lawmakers are expected to pass an amendment that would protect the right of european citizens to keep living in the u.k. make such awant to guarantee until she received a promise of a british citizens living in the eu. in asia, macau's casino revenue rose in february for the seventh month interrupted both high
rollers and leisure gamblers flocked the biggest gambling hub. the casinos have bounced back after a two-year slump blamed in part on china's crackdown on corruption. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. mark: let's get to the french presidential election. republican candidate françois fillon ended a chaotic morning with this definitive message. only the french people will decide. only universal suffrage can decide, not a judicial procedure, who will be the next president of the french republic. won'tt give in, i withdraw, i will go until the end, because it is not just me, but democracy that has been defied. mark: carolyn, what has been the reaction to a chaotic morning in
france? >> was a very chaotic day for françois fillon, another one since this investigation started at the end of january. it started with him was putting his planned visit at the agriculture fair with an a lot of a reports through the morning until the press conference midday saying he will fight on can keep going, even if he is placed under formal investigation, and françois fillon will be heard by the .udges on march 15 something didn't go very well during the press conference because françois fillon also said he was the victim of a political assassination, and he was treated unfairly by the judges. that didn't go very well with one of his closest advisers, bruno lemaire, who was in charge of european and international advice for the candidate who decided to resign from the fillon campaign. of course, that didn't go well
with any of the opponents of france will fillon -- françois fillon. we heard emmanuel macron from the agricultural fair, who said that fillon has lost his grip on reality. we heard from the socialist candidate saying he was shocked at the incredible violence fillon's press conference. even the far left wing candidate reacted, saying he was sad for the right-wing, who deserved a real candidate. only one has not reacted personally, marine le pen, who is also facing, as you know legal troubles. vonnie: caroline, nothing majorly different from yesterday, but how will this impact of the other players in the election now and what are the polls saying? caroline: it will be absolutely decisive to see what kind of impact the attacks on françois , what kind of impact this
will have on the opinion polls. then -- at the moment, whole established before the press conference shows the gap is narrowing between marine le ,en at 25% and emmanuel macron just one point behind at 24%. françois fillon is still the third man, but we will have to measure the impact over the next few days. it is also interesting to see if marine le pen is facing legal troubles, this does not seem to have to manage impact -- on her popularity dramatic impact yet on her popularity in the polls. the presidential program -- he has been facing a lot of criticism that he didn't have the program yet. that is something he will do by late morning tomorrow. a lot could still change, given that just a month and a half ago fillon was the favorite. mark: caroline, great job. caroline connan, reporting live
from paris. vonnie: back to the u.s. and president trump with the first speech to congress last night were getting a lot of the campaign promises, gave not that many details about his plans. more onare focusing what 2 fed officials had to say about the possibility of a rate hike later this month. joining us with more on what to drive the markets in days and weeks is wells fargo strategist, and bloomberg policy correspondent michael mckee. to talk about. but michael, what did we hear last night that makes it sound like anything will be accomplish ed policy wise this year? michael: no indication that we will see major stimulus for the economy this year. obamacare is in trouble and i will stretch out.
tax reform maybe by the end of the year if we are lucky. nothing on infrastructure this year. another 2018. the fed has to look at the long invariable lags about monetary policy. they will make policy thinking about what could happen in 2018 at this point they don't know enough, and bill dudley said this in his cnn interview last night. we don't know that enough to incorporate that into the forecast but we look at the economy as it is now. we can like there is no reason not to go. we will have to raise rates at some point in the economy is telling us sooner rather than later. vonnie: brian jacobson, let me bring you in here. past 20,000, we had the pce deflator at 1.9%. what is to stop the fed hiking in march? >> i don't think there is anything that would necessarily stop them other than messaging
on why march as opposed to make origin. what is the senate -- may or june. what is the sense of urgency? a terrible thing but it would certainly be a faster pace than the markets uprising in. going to pay would be a lot safer because it would set the stage for -- going in may would be a lot safer because it would set the stage for 3 hikes. this point it would surprise markets and i'm not sure the fed wants to do that, either. brian: i'm not sure it would surprise markets if they decided to wait until may. if they wanted to say that the balance of risks has shifted to the upside for economic or of and that could set the stage for the hike in may. maybe they want to telegraph of the upcoming rate hike as opposed to just springing it on people. mark: so, mike, what is priced in one we look at equities and donald trump? in your notes, you say the
equity market is perfectly rational if you assume taxes will be cut and regulations relaxed. a big if. we could add when as well, brian. what if they are not relaxed soon? brian: i'm not sure if it matters too much of it is a 2017 42018 story. if you look at how long-term investors look at things, it is a matter if the cash flow is in 2017 or 2018, especially if discount rates are pretty low. maybe it doesn't matter if it is 2018 verses 2017. it would be disappointing if they didn't get something in in 2017. if we see a repeal of obamacare by the middle of march as part of the 2017 budget and then they immediately take up the 2018 budget and get tax reform by august, they could have an 2017. of 4 tax year if you look at the s&p 500, effective corporate tax rate is 26%.
it could lead to a reduction down to 18% for effective tax rates. that leads to about an 11% .ncrease in 2017 eps the math to me works out. inhave seen an 11-12% run the s&p 500. what does it do for the trajectory of growth? when it comes to the fomc, in the last 24 hours, if you are a member of the fomc, has anything changed in your assessment of what trump is going to do, yes or no? michael: no, nothing has changed near assessment of what he is going to do. he said the same thing she set up campaign trail -- tax reform, obamacare, infrastructure. note details but said we are going to go ahead with that. the fed is said the current economy, it keeps getting better, the numbers continue to be strong. the thing about march is it
gives them a window of opportunity. remember how many times they were criticized for not taking the chance when they had it and then some thing happens. you have the debt ceiling coming back march 17 come back into play. the continuing resolution runs out. you have the french elections -- hello, caroline connan -- coming up. you have nothing standing in your way in march. if you think you raise during that period, maybe you want to take an earlier shot. vonnie: when do we need to know about things like infrastructure , things like the aca being repealed or repaired or whatever is going to happen? when do we need some specifics in order for infrastructure stocks to stay at levels thereat in order for health care stocks to maybe get a bit of a boost again? brian: this is almost like a dream journal of sorts. record whatever fantasy you want about what it might look like and when it might happen. the sooner the better, as far as details.
president trump has already said that by march 15 we would see the health reform bill, and treasury secretary mnuchin said that by august we will probably have tax reform. the sooner the better. vonnie: you see a chart of financials, health care, and it is clear that even in the last couple of days, financials have taken another spring higher. how can then be -- how can that be sustained throughout learning cycles if we are not getting something concrete out of washington? brian: i think right now financials are reacting more towards the sudden move up in yields. steeper yield curves are better. improving economic fundamentals. current conditions are pretty good. a lot of the idea that they are moving up because of regulatory relief about rolling back dodd-frank, a lot of that might be baked into the cake here. vonnie: mike, some of the data has changed, but the voters who voted in donald trump are likely not seeing much change yet to their lives.
that has got to come home to roost at some point. michael: yeah, but you have got a very long time before that comes home to roost. trump took over with economy momentum building so the numbers will be good for quite some time . at some point we have got to have a recession but nothing on the horizon at the moment. it will take time for all of this to filter down. most don't think he will affect those people the same way he does in terms of ringing back factory jobs from overseas. i had a question for brian if i could ask quickly. we have been talking about this rally has a trump rally. we are talking about the fed because the economy is stronger. can you connect to the 2, that this rally is justified because the economy is better whether or not trump is in the white house? brian: there is three driving forces. number one, you have an improving economy. then you had more optimism with the election of president trump
and all the promises, and the fed talking about hiking because the economy is stronger, not because they are concerned about inflation. those three things are driving this rally. michael: you like to hear that the fed say things are getting better. brian: that's right. vonnie: we have to leave it there. brian jacobsen and michael mckee. coming up later today on "bloomberg markets," 1:30 eastern, americans for tax reform president and founder grover nor is joins us with his thoughts on the president's tax plans and what they could mean for markets. mark: still ahead on "bloomberg markets," big changes at bridgewater. the billionaire founder stepping down by april, according to a post on linkedin. he will remain the hedge fund co-chief investment officer. david mccormick will move over into the co-chief executive role. eileen marie replacing dalio. john rubinstein will be leaving the firm. much, much more on this story ahead. this is bloomberg. ♪
vonnie: the private equity in the street is the most bullish it has been in a long time. these other words of the carlyle group co-ceo and cofounder david subenstein, who says trump' policies have many feeling optimistic. reason people the are excited about it is they feel there will be less regulation of private equity. the animus some people have to private equity might not be there. don't like private equity, they think private equity people don't do great things, and they feel we aren't as good as we think we are.
the feeling is the administration will be focused on other things and not beating up on private equity. generally there is an atmosphere that private equity is welcome into the financial community and regulations and in regulations coming out of washington and lower taxes will he favorable. vonnie: that was the carlyle group co-ceo david rubenstein speaking in berlin, jürge germa. we should note that david's show is back for a second season. tonight it on a clock p.m. eastern, the special guest is oprah winfrey. catch that only on bloomberg. mark: look forward to that. we will follow big changes at bridgewater. giving up his spot as co-chief executive. this is bloomberg. ♪
stepping down as co-chief executive officer in april according to a post on his linked in. let's bring in erik schatzker but he has been following dalio and spoke to him and demos earlier this year. your first thoughts on something that is a little bit further into this letter, jon rubinstein is leaving. ofk: to your point, a lot big news coming out of bridgewater in this statement from ray dalio, and i would lead with jon rubinstein leaving is co-chief executive officer. jon rubinstein was an unusual higher less than a year ago for bridgewater. you may remember he was a key lieutenant of steve jobs and apple. he helped to design the imac and ipod. he left apple years ago, joined bridgwater last year, in this role ray dalio described as both leadership and technology. given his background at apple, ray dalio was relying on jon rubinstein to help redesign a
new technology architecture for bridgewater. and today ray dalio says jon rubinstein did in fact to do that. vonnie: yes come he gives him a lot of credit. he says he is not a cultural fit. erik: by mutual agreement, not a cultural fit. vonnie: what does that mean? erik: we know bridgewater is an unusual place. you might describe it as an on place. talk to meay dalio and other people about radical transparency. that is what makes bridgwater unusual, everything is out in the open. dalio thought jon rubinstein would be a good fit because he worked with steve jobs in an environment that celebrated disagreement and at times friction. that is what goes on inside bridgewater and that is what he thought jon rubinstein would work out well there. jon rubinstein did not come and his exit, bonnie, his first -- vonnie, is precipitating other
changes at bridgewater. dalio is getting out of ridge water management by april 15, and david mccormick, former treasury undersecretary under george w. bush, is being elevated to co-ceo with eileen murray, formerly of morgan stanley, also who has a deep background in technology. these are big changes at bridgewater, the world's largest hedge fund manager. mark: what is the significance of the mccormick co-ceo with murray? do we know much? erik: do we know much about them? well, we know that eileen murray has been effectively running a good part of the firm already. her skill appears to be in administration management and oversight of the technology operation. david mccormick, by virtue of his experience in the public sector and government, mark, is a little bit more of an
external-facing prison. bridgewater needs -- external-facing person. bridgewater needs both of those kind of people in managing roles gregse ray dalio and jensen, another former co-ceo, are running day-to-day investments. one more thing i would .2, mark, out of this memo from ray dalio, is that he is putting the world on notice that he will be carried out of the bridgewater offices boots first one day that he says, "i'm excited about this change and expect to remain a professional investor at bridgewater until i die." vonnie: for until those running bridgewater don't want me anymore. erik: unlikely. many questions happen raised over the years about ray dalio's willingness to let go. clearly he has come to terms with the idea that he should not be running the firm any longer that he came to terms with that idea a while ago, which is why he put greg jensen in the co-ceo role in the first place.
but somehow that devolved into what we perceive on the outside to be a power struggle. that is why jensen was ousted as co-ceo, putback in the co-cio's role. it has been a bit of a revolving door the past year at bridgewater. we will see because it is hard to know whether this structure will stand the test of time. vonnie: the people who support them have a proven understanding of bridgewater and the unique culture and a treasure these things. our thanks to erik schatzker of bloomberg news. right now the u.k. parliament lawmakers are debating the right of eu nationals to stay in the u.k., a result that would complicate 'theresa may's brexit timetable.
mark: we are going to take you from new york to london in the next hour. plus, we are covering stories from washington and paris. here are the top stories we are following on bloomberg and around the world. risk-on in europe today, stoxx 600 having its best in more than a month with u.s. stocks hitting record highs. the dow smashing through 21,000. .onnie: the united states, president trump gives his vision to congress and the nation. one key question, when will he start translating words into results? as the president noted in his speech last night, billions and wealth have been added to markets since his election. we will tell you which billionaires have made the most money since the trump n.