journalists and analysts in more than 120 countries. bloomberg.ching hong kong and china closed for lunch. barely moved. -- bouncedte back back into positive territory after being in the red. i will be back in half an hour. ♪ "ousef: welcome to the best of bloomberg markets" president erdogan with sweeping new powers in a referendum area we spoke to the deputy prime minister and has its worries for the lyra. rex tillerson warned it could be another north korea if its nuclear ambitions are left unchecked. capitalhear from our and see why als are being good. weekendls best rally is due to a surging u.s. production. asking opec's chief model for the take on the situation. -- in the 2016. [indiscernible] q2 withto q1 and traditionally more -- the resurgence otherwise from the production oil -- [indiscernible] focus, we have seen a growth in numbers offshore. -- verydependent limited sources with our offshore storage. the number of available from 30-50 million barrels. restocks offshore and onshore as growthe have seen steady between march and february. we look at nearly 20 million euros --

beinge the u.s., the euro the election come in, stronger demand growth in china and in the gdp numbers that were ahead of expectation. these factors, we think, once we get the french elections out of the way and we start to see more comfort in the eurozone coming through, that in itself could toourage the eurozone strengthen and ultimately lead to higher demand growth in europe with a slightly weaker dollar versus the euro. we think that is supportive of the higher oil prices. yousef: a number of factors that could drive those prices higher. we think oil could touch $70 by the end of june. yousef: i will jump in because that is a perfect point to think about, in terms of ramifications and impact and what it means for some of the equity -- and what is happening in the united arab emirates, you feel strongly about banks. one of your top calls for the middle east and north africa, we put this up on a chart, on the basis of your research, looking at a bit of the commercial, talk about the thinking here. hootan yazhari: this is something we have been pushing since november of 2015.

owning a wearable to 29% in four years. caroline: what struck me was the lack of mention of china. brazil is going well, turkey going well, but china seems to be a slow down area. are they right to focus on china or switch to india? >> apple makes a lot of money selling phones. they are profitable. they want to cell phones -- they sell phones profitably. you have to look at the markets where there is the most upside. china is a tougher market, but they have done well. not where their biggest growth will come from. caroline: the right sort of country given the average earnings power in india is less than china. do they have as much of an opportunity in that country, do you think? >> if we look at the growth of smartphone adoption in china, 50% over the next five years, but in india, that will almost double. if you look at each market, about one billion people, the middle-class and upper-class are very large markets, even bigger than the united states. a lot of upside. caroline: staying with apple, a bloomberg scoop. the company is designing a new chip for mac laptops. take on chips

korea, but this just after china. how worrying is this? it is not the only place we investigated. ian: $800 million for qualcomm is nothing. there is a lot of money floating around there. people have much more important things, much more concerned about the business model, 70% of their profit comes from licensing revenue. so anything that potentially affects how they are able to let firms is aenses on big deal, and that is the key concern that has been there and is manifesting itself. cory: it seems like this also gets to the core of how qualcomm is and how iis different from most chipmakers out there, not just because it relies on intellectual property or licensing inventions as opposed to selling the physical chips, but also they had with that business model achieved market dominance such that their , licenses, their technologies are written into the very codes that make this work. you really can't make mobile telephony without qualcomm chips. ian: that is precisely their argument. without us, it the world would not exist. we should be getting our cutter back. please hand over your

businesses sell things through the alibaba platform to china and asia. we mainly talked about small business and young people and american agricultural products to china. we also thank the china-u.s. relationship should be strengthened, it should be more friendly and better. caroline: the visit is the latest from a growing list of business leaders eager to work with the president-elect. david westin caught up with general motors chair and ceo mary barra for an exclusive interview at the auto show and spoke about the upcoming administration. marythere is a lot of opportunity. we have more in common with the administration and president of than we have at odds. we are looking to strengthen the country, strengthen obviously business performance because we , are a big provider of jobs and provide over 100,000 good paying jobs, and looking for reforms, regulatory streamlining, so those are all things that are going to improve our business and allow us to reinvest. david: there is an opportunity there for you? mary i believe there is. : this is a complex business with long lead times. the

. commercialn the a 3.99% banking we will see it selling. the buyer will be china cosco shipping. no material impact, which will boost its required capital ratio by 40 basis points. shares so far up 1.6%. we've got the world covered with you with 2600 journalists. quick snapshot of the afternoon session -- here we go. on the way up. ♪ caroline: i am caroline hyde. this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, the u.s. hits russian officials with sanctions over what washington says was an unprecedented attempt to interfere with the presidential election. plus, the rise of the robots with u.s. jobs in the crosshairs. we'll discuss whether humans and a.i. can peacefully coexist and we'll take a look at the biggest tax break news from 2016, from from personal a.i. assistants to reusable rockets becoming a reality. but first to our lead, the obama administration has imposed sanctions against russian officials and state institutions in retaliation for hacking democratic party emails. it's the first public retal

,ion for our we've got to ask strategically where we want to be with russia and china. emily: that was former director of the nsa keith alexander. facebook's whatsapp messaging service has been partially blocked in china. the government began breaking down on the virtual private networks, which allow data to be routed overseas. social media censorship has been ramped up in china. withg up, our interview penny pritzker on the approach to trade in the white house. this is bloomberg. ♪ oury: let's return to coverage of aspen. i set down with penny pritzker. she spoke about the trump administration's up poach to trade in the future -- approach to trade. penny: we tried to give our successors the benefit of what we had learned over our tenure. i think what is challenging is as it relates to the issue we are working on here at the fortunate conference, i think the future of work requires a focus by now only the private sector but also government to work on training and dealing with the skills mismatch in the short run and making sure we are training people for jobs of the 21st century. the

country, we've got to ask strategically where do we want to be with russia and china? emily: that was former director of the nsa keith alexander. facebook's whatsapp messaging service has been partially blocked in china. this coming after the government began cracking down on virtual private networks, or vpn's, which allow data to be routed overseas. authorities have an ramping of social media censorship in china as it prepares for its 19th communist party congress. coming up, our interview with millionaire businesswoman penny pritzker on the approach to trade in the white house. this is bloomberg. ♪ emily: let's return to our coverage of aspen. i sat down with penny pritzker. and she spoke about the trump administration's approach to trade as well as the future. penny: first of all, we took transition very seriously, and tried to get our successes the benefit of what we have learned over are tenure. what is challenging his, as it relates to the issue we are working on here at the fortune conference, is i think the future of work requires a focus, not only by the private sector, but

100 times on a per capita basis the number of ipo's out of china. so, what is happening in israel is really quite amazing. caroline: you founded the california-israeli chamber of commerce and are helping to build bridges between silicon valley and israel. i find it fascinating that intel got in on another company. they got one of the largest in israel. just how much does silicon valley already know israel? >> first of all, we are based in silicon valley and invested in over 60 companies in israel. it is no surprise i think that all eyes are on israel. it has been that way for more than 20 years. if you look at some of the leading companies that are based here out of israel, whether checkpoint or others, companies that are innovating in both the hardware as well as the software space, then you see also that a lot of the local funds and investors are looking to israel for innovation. so, we have created a lot of waves with its acquisition, and i think that mobileye is not a big surprise. in 2016 alone, almost $5 billion was invested into israel and -- into israel in capital, so ther

shareholders. china's biggest coal miner jumped the most in eight years. 3.6 billion dollars last year. the news was flagged in january but investors were surprised the dividend. it says that will be maintained in the foreseeable future. mobileme, 24 hours a day, powered by more than 2600 morealists and analysts in than 120 countries. this is bloomberg. let us take a look at the justts, afternoon trading, an getting underway. hang seng up .6%. shanghai is relatively unchanged. shenzhen down .1%. ♪ caroline: i am caroline hyde. this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, elon musk is looking for money. he is out to raise $1 billion to bring his model three to the market. plus, intel hit the ignition switch on its dream for the driverless car with its $15 billion acquisition. how mobileye went down. another twist in a massive 2014 yahoo! hack. u.s. officials blame russian intelligence. first, to our lead. elon musk needs to raise $1.15 billion more to bring his model three to market. his believers, along with in

of the week's top business stories, including china's tencent taking a stake in tesla. >> they are charting their plan to take ownership of this world of connected electric vehicles in the future. erik: this is bloomberg. ♪ ♪ "bloomberg best." i'm erik schatzker. let's continue our tour of the top business stories with news from the middle east where oil nations met to discuss the efficacy of output limits. >> opec members and independent oil producers are to consider extending curves on output, saying more time is needed to drain the global oil glut. >> opec's secretary-general sees a high level of compliance with cuts. >> from all indications we expect to see a very, very high levels of conformity and the subsequent months. and this will and from the decision on the duration. >> this was never going to be a meeting about the cuts. it would be about compliance and specifically they are impressed with the levels of compliance. they call it conformity. they have called for recommendations in terms of what to do going forward. the other thing i need to point out is the reality of

next, more of top business stories, including china taking a stake in tesla. >> they are planning to take ownership of this world of connected electric vehicles in the future. erik: this is bloomberg. ♪ erik: we will nations discussed -- oil nations discussed output limits. more --s >> the opec secretary general sees a high level of compliance with cuts. >> from all indications we expect a high level of conformity in the subsequent months. decision.inform the >> this was never going to be a meeting about extending cuts. specifically they are impressed with the levels of compliance. they have called for recommendations in terms of what to do going forward. immunity is the reality of the inventory. the latest reduced figures, the rigs underscored that once again. >> qatar plans on investing 5 billion pounds in the u.k. over the next 3 to 5 years, taking its total commitment to $40 billion. the finance minister told bloomberg that qatar and other gulf states will push for a post-brexit free-trade agreement with the u.k.. >> we are not looking at short-term upside or downside. that is

way, then come back, i don't think donald trump was to have a full-blown trade for with china. he wants to adjust the barometer slightly. there is a certain point at which you push against things which are really difficult for politicians and there comes a point where justin trudeau does not stand up to donald trump, he looks weak, and that is where the problems come. if you think the problems are difficult in canada, look at china. there you have president xi jinping, the year when he is maybe deciding whether to stay longer as the countries leader. he cannot afford to look weak against trump, but even justin trudeau faces that. carol: you also talked about the legalization of marijuana. they are working towards it. >> yes, the law has gone through. it will probably take a couple of years to come through. like many things that justin trudeau is involved in, there is a bold signature statement of policy and the details need to be examined and difficult -- different ways. one of them is who will make money out of this. is the government going to tax it? how will it work? he has def

into alibaba and the future of business in china and around the world. jack: i believe when trade stops, war starts. rishaad: haruhiko kuroda makes the case for stimulus in japan as other banks pull back. gov. kuroda: prices are not right. here, there's a kind of differential mindset. rishaad: australia's president

to an end. the means to get there is less important. another interesting story is about a china bond meltdown. megan: potential. what we have identified is two forgeries, everything from steel mistakenly used to people worried about forged documents, but this market, people are getting concerned about, because liquidity in the chinese debt market is crucial to keeping corporates stable. what it shows is that once you have a little twitchiness, what people are concerned is that if it shrinks in terms of people getting reticent to buy that debt, that actually what we will see is more companies exposed to default and whether there is a domino effect of that sector. carol: we have got to get to the cover story. wilbur ross, familiar to bloomberg audiences, but this is donald trump's pick to lead the commerce department. megan: it is a huge department with huge responsibilities, and this shows that tromp is picking business people to lead this. this is -- what it delves into is the wilbur ross of the commerce department, will that be the model and the template for the trump administr

that we have. that is likely to play out over the ensuing years. they had immense problems in china that we know about. what they really did was they stay true to their beliefs. they offer consumers a better platform. a better way to make use of their money and be more efficient. a way that was user-friendly. how really comes through is much they believed in that driving each dose and driving force in the creation of these platforms. google always said that we think our product is better. these group of entrepreneurs certainly believe that about their product. focused on technology, snapchat is known for its ultrasecret corporate culture. oliver: we'll that fly leading up to their initial public offering? >> evan spiegel is notoriously secretive about everything. he really keeps things close to the best. he sees it as a way to allow him to change his mind on the road if he wants to be innovative. what this has trickled down to is a culture within the organization where employees are not being sure what is going on. they are very sideload. d. silo' what we have learned recently is th

what will happen to them internationally, what their places with china flexing their muscles. with that this nuclear threat and with this playing out with the new trump administration, it is all eyes on china and the u.s. and how they will grapple with the north korean threat moving forward. oliver: it is interesting that one piece of this puzzle that is coming undone is the stability in south korea. you talk about the ouster of the president. that is a region that has been a middle ground between two parts of the world. megan: this is south korea par for the course. one of the things this article draws out is that even though we have seen the ousting of president park and samsung being charged with this corruption scandal, this has happened decades before and south korea with the same family. it is something that happens quite frequently. what is different this time is democratic forces in south korea are looking at this as a launchpad to break off a corporate system in terms of these massive south korean conglomerates which control 58% of the country's gdp and saying is that the

, trend, saying if you extrapolate our china interacts with the world, you can see this schism emerging and if it keeps widening, we will end up with two distinct spheres in the economy, which goes counter to this trend of knitting together of economies that we have seen since the fall of the berlin wall. carol: talk about the two sides, if you will. >> one of them will revolve what we in the media call the west, european companies and japan. the other will revolve around china and it's sort of satellites, perhaps including russia. the countries share many a interests. the countries that are a part of the one road initiative, this infrastructure spending plan that china has rolled out. carol: we were talking about china last week because they help the communist party conference and we heard a lot from president xi and his plans for the country. what that we heard from him supports this? >> i think that he tried to be reassuring in the opening speech, was over three hours long. carol: it was very long. cristina: he promised on companies that they would have the same protections as local

europe is the lack of ambition. i would say china is learning a lot of things that they can progress. francine: from issues -- shery: from issues that speak directly from the bottom line -- >> there will be a recession but i don't know when it will occur. >> if none of that happens, you will see the market take a big

business forum. >> you cannot change the world if you are not -- -- he weakness of europe is >> china is learning a lot of things. >> issues that go directly to the bottom line. when that will occur. >> i think you will see the market take a big

down to china, no big -- turning now to china, no big headlines. although they did agree they would have a 100 day period to negotiate trade terms with agriculture and financial services. does that an indication that the trump administration has changed its approach to trade with china? >> look, i think the approaches that trump was never going to make a negotiation with china himself. men now have a direct relationship they can count on. that happens off the headlines, you didn't have the media saying how did the handshake go, scrutinizing every possible move like they did with angela merkel. it's to his credit. but you saw him tweet the following day, where do we go to trade, that remains to be seen. they have 100 days to kick the can. but wilbur ross and others in the trump administration on the economy are anywhere from moderate to extremely hawkish on china. the chinese definitely have the ability to negotiate with the u.s., but they will not capitulate, and a lot of u.s. corporations are quite unhappy with the level of access, something that the trump administration has said i

test a couple of days before the first meeting between president trump and china's president xi jinping. japan called a "major provocation." president trump is likely to push china's leader to pressure north koreans on their nuclear weapons program. in the middle east, syria and russia are denying involvement in a gas attack that killed at least 70 people. russia blamed the deaths on rebels. they bombed and ammunition cache. syria has agreed to destroy its chemical weapons after a 2013 attack of sarin gas, which killed people south of domestics. -- of damascus. president zuma has fought back against accusations he did not consult adequately before firing the finance minister. gordon was publicly criticized. day hourws 24 hours a by more than 2600 journalists and analysts, i'm emma chandra. jon? jonathan: bloomberg's alix steel is standing by with sheila patel, goldman sachs' asset management. great to see you care you have a great insight into what is going on right now. today, we get the news that north korea had yet another ballistic test your we have president xi, president t

discussions today. he is expected to push him to open chinese markets to american goods. he wants china to put pressure on north korea over its nuclear weapons program. employers in london are having trouble finding workers and brings it may make it harder. from the recruitment and employment confederation set across the u.k., there is difficulty finding employees, especially in finance and technology. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, this is bloomberg. i am taylor riggs. david: returning to our top story, we go to art chief washington correspondent. take us through the tick-tock. when did it get announced? when did the president tell president g. the video ofr was the heinous acts. about the use of chemical weapons, that marked a tone for president trump. i'm told by sources that this was something that he has evolved on in the past several weeks, not just this one instance. said theyary of state believe president assad has used chemical weapons several times in recent weeks. change. marked a the u.n. ambassador nikk

months. is there on their agenda, radar? of china's massive evaluation is why they were cautious. the risk has not gone away. it has been mitigated substantially. in terms of europe, it is going one of the two guys, which is a net positive. merkel is consolidating her base. would be surprised if overseas risks influence the fed to the degree this year that they did last year. 16 the fed had a higher forecast because of the risks at the end of the day. what do you see as providing the potential risk? shahab: the difference this time is the u.s. is doing things it's so potentially -- itself potentially to force itself to grow. it lowers the weighting of overseas risks when you have the wind behind you. at the end of the day, if you are the fed and looking at what risks are out there, you cannot ignore the european risks. there is a new variation. china will always be brewing in the background. these unusual issues we have to deal with, but it is important from the fed's perspective to think about what the u.s. itself may do. it lowers the relative weight over the overseas risk. troy: th

china, factory prices rose the most since 2011, the fixed rate increase for the world's largest exporter, and lifting the outlooks of global inflation. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. david: credit suisse says it keepsut 6500 jobs as it pushing cost-cutting measures. the bank announced a bigger fourth-quarter loss than expected. francine lacqua spoke to tidjane thiam who said there are more changes ahead. it will be a source of volatility with the 10 year french treasury, with a basis point around 1%, will create uncertainty. that outcome and the uncertainty of the outcomes. david: francine joins us from zurich. election, they are settling some of the litigation problems in the united states? what they are saying is they posted a bigger than expected loss. the trading did not go how they were hoping, but they feel they and a capital ratio in line everything goes back to the loss they settled with the department of justice. tidjane thiam telling you clearly he thinks this was a massive hu

around the world? we have growth in china and around the world. if you knew the president would not be able to get things done this year, what with the markets do? george: bond markets have been much more cautious in not pricing in the full extent of the fiscal response. equity markets are operating to their own volitions. just if thee get to fed is going to hike rates for the right reasons, and the fundamentals are better, then of course it is all about the other factors around it. i think there has been a lot of hope on inflation and growth inflation. david: does this help because it takes pressure off the fed to hike? torsten: if you look to europe and emerging markets, you frequently have a lot of political noise and storm around and economic data still moves in a business cycle. we need to pay attention to where we are in the business cycle, and that is what janet yellen was saying yesterday. evidence shows from e.m. recently and europe, we could have significant increase in the stock market and significant improvement in financial markets even after we have some political wobbles

markets, particularly china, had a gigantic boost in part because of fiscal stimulus and credit growth. we are still continuing to see the echo effect within the commodities market because of that. overallets i think will start to correlate in the second half of 217. jonathan: what does any for volatility? kate: we have been waiting and waiting and waiting for it to pick up in a sustained way. higher environment is a better environment for more active investors. last year, we had the three spikes around political events or chinese growth in the beginning part of the year, and none of it was sustained. what will it take for people to participate a lot on the upside and downside. i think we will see more volatility in 2017. but perhaps at a much lower trend level than the long-term historical average. chad: i have to agree with that. i think they will start to spike up when you see the fed start to raise rates on a gradual basis. we are not expecting inflation will run away and force their hand. that is our expectation. also we do believe there could be a flattening of the yield curve, w

ambassador to china on what to expect from president trump speech. this is bloomberg. ♪ >> this is "bloomberg daybreak." hour, up in the next former u.s. senator and ambassador to china max baucus joins us. ♪ welcome to "bloomberg daybreak". howard schultz says the world's biggest coffee shop operator has a commitment to transparency and doing things the right way. down with francine lacqua yesterday in milan covering politics and taxes. criticizing any particular person or municipality, sometimes a company that is iconic as starbucks gets pulled into things that the whole story is not really told. pay 18 main pounds of tax last year in the u.k. that is emblematic of our commitment to do things the right way. i personally believe 100% in transparency and want to do everything we can to make sure there is trust and everything we do and we are an open book. it impact your customers, the perception, refugees, or do you do it no matter what? to pay fair and equitable taxes. 100% of the time, never do anything that would remotely be inconsistent with being ethical and doing the right

relations -- give me a rank order -- china versus mexico, which is more important right now? mohamed: they are both important, david. if you're worried about the systemic effects -- the global systemic effects, you would put china about. some -- above. sorry, go ahead. david: no, carry on. about thef you worry global systemic effects, china is more important than mexico, but in the context of the u.s., they are pretty equal. mexico plays a significant role. i was in canada a few days ago. they are concerned about what has happened to a major trading partner. jonathan: in about 10 seconds -- two options, a 10 year treasury at two point 45%, the stock market at an all-time high -- buy-and-hold for you -- which one? mohamed: the stock market. jonathan: there you go. always appreciate your time. coming up on the program, more on u.s. payrolls. blackrock's rick rieder joins us, and the reaction from the white house, with gary cohn. we cut you down to the market open. 34 minutes away. equities, futures moving higher. positive 92 on the dow. positive 10 points on the s&p 500. byasuries, yie

china. it is not going to go into china because it has suggested the chinese are worrying about as cozying up to the americans. we want to do stuff with brazil, so all these agreements will be important. jonathan: what have you told him so far? sir martin: i have not told him anything. jonathan: have they reached out? sir martin: they have, actually, and the view i get is pretty much what i have given you. business wants reduced uncertainty, limited uncertainty. run a business when there is always stuff on bloomberg like this? alix: the wages are getting higher. sir martin: a little bit. alix: are you seeing that start to feed in? sir martin: no, for the last 10 years really, people have become used the fixed compensation remaining pretty stable, increasing a little bit. information lights -- rates are low desk inflation rates are low. -- inflation rates are low. in our planning or 2017, salary and budget around the 3% increase level worldwide, and that includes latin america at high inflation rate, countries like brazil and argentina. we have not seen increases in wage inflation t

. david: the big question for twitter, how to get money in the door. president trump has put u.s. china relations near the top of his agenda. rather than talking with chinese jingping vianxi telephone, he wrote him a letter. he looks forward to working with president xi. much does this matter that it's a letter? >> someone described it as called me maybe. standard diplomatic language. that is quite an improvement from the rhetoric we had from mr. trump during the campaign. warm uphe wants to those relations with china. there is still some much uncertainty out there. -- so much uncertainty out there. david: what is being received? how is the chinese government reacting to this? enda: we saw them ultimate overnight. -- welcome it overnight. there is still so much uncertainty around what the u.s. administration will do towards china. david: what may be going on behind the scenes? trump is reaching out to ambassador in d.c.r i important is very the forward for warming relations. look for the confirmation of mr. mnuchin. he may add clarity to the language around trade. also pushes ahead to s

. ♪ jonathan: from new york, this is bloomberg. the campaignon trail, china, china, china. the developing relationship between donald trump in the future of trade between the notice states and the world's largest -- second-largest economy. -- not that simple, take a listen. >> every one of those people is a free trader. you would be surprised to hear that peter navarro is a free trader. what peter navarro is looking for is fairness in the trade process. he is looking for evenness in the playing field. jonathan: still what thus is adam posen, peterson international for economics. peter navarro wants to see a leveling of the playing field. there are a lot of tariffs in china, particularly around the auto sector. how do you get them to reduce there's -- theirs? with if you are dealing someone who exists and is -- and is not going somewhere, -- going anywhere, you cannot leave them and make a threat. monitorsson institute what a trade war with china would look like and it would put people out of work in las vegas and walmart. it would put people out of work in the production in ge

for the first time since 2011 and china is said to put more restrictions on banks to help stop yuan outflows. all clear. janet yellen saying the economy faces no short-term obstacles in a speech thursday. and a slew of officials talking about how to had sink the -- shrink the fed's balance sheet. david? david: we're goined by mr. campbell who covers banks for bloomberg and alice williams. she was a banker for morgan stanley and u.b.s. let's start with the numbers because they broke 15 minutes ago now. they're basically up across the board according to estimates and last year. mr. campbell: that's right. really what this is about is the expense story. it looks like that's our initial read, noninterest expenses are lower than analysts had expected so bank of america did better on that. credit cost provisions are ower than analysts expected. that's a good story. people may have questions on revenue growth. bank of america came up short on net interest income with interest rates rising a bit during the quarter. there's interest there. bond trade chg was going to be -- there were a lot o

again, but why are free trade agreements coming under so much criticism? i understand the china point -- they have massive tariffs on luxury cars, etc., but why mexico? sen. thune: you are right. the point on china is fairly clear because of the way which way discriminate against american-made products, but mexico, canada, the whole nafta deal, when they indicated, and what wilbur ross indicated, is on a periodic basis, it is important to re-examine the trade agreements to see what is working and what is not. i do not think you will find much argument from people that mexico and canada -- our two biggest trading partners, that we need to have a robust a relationship with them. whatever steps they take in terms of re-examining nafta and other trade agreements, that is fine, but in the end, we need to end up in a place that continues to promote a low post, open trading environment with our two biggest trading partners. alix: thank you so much for joining us. we appreciate it. senator john thune. sticking with trade and tariffs under a trump administration -- former u.s. secretary

, president trump is after china and what they are doing with the exchange rate. theoretically they cannot close the exchange rate because it would mean weakness. that is a real story that is happening right now. that continues, surely. they have no choice. but to carry on with the proper currency? marc: even under president obama, the argument was we do not want central bank buying treasuries, we want them to buy our goods. policies.mercantilist do not accumulate treasuries, buy our goods. private sector has been buying the bonds from the chinese, from the japanese. part of this is also shipping out of the build sector to the long end of the curve. jon: marc chandler is still with us. president trump and prime minister may will meet to discuss the future of trade. that is coming up next. even can with politics, former health and human services secretary under president bush michael leavitt will join us. from new york, this is bloomberg. ♪ jon: from new york city, this is "bloomberg daybreak." president donald trump will meet with prime minister theresa may. with us from london is