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tv   Bloomberg Markets Balance of Power  Bloomberg  January 23, 2018 1:00pm-2:00pm EST

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we're watching. president takes action for the first time on terrorist slapping duties on important solar panels and washing machines with a signing in 30 minutes. to the ceo to see how it will impact his business. can congress and the president reach a deal on daca before the next shutdown deadline? we will hear from white house legislative director mark short says the significant -- who says to give him progress has been made. while americans feel positive about the economy, they are not thrilled with the job performance of president trump. we look at whether this unusual dynamic could spell doom for the gop's in the midterm. ♪ david: president trump is headed to davos later this week. concerns about propriety -- about protectionism is on the minds of business leaders he
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will be addressing. think there will be a some practice measures, negotiation, renegotiations of the contract. i don't see anything that will be leading to a heavy come a significant reversal of protections. >> we know there can be decisions. -- protectionism has never been good for effective trade. >> it's clear that the biggest risk and our view is trade. trade in a number of ways. fundamentally, are we questioning the kind of global trade order that has been marking this global economy for so long? i think that is probably the biggest risk out there. >> for us, it's not going to change our approach. we generally agree with free trade. but it is not going to change our direction. the u.s. solar industry is one of the first of but the president has moved to protect. deciding to impose tariffs
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overseas. an official signing of the order is due later this hour. for a view within the industry, we welcome john berger, ceo of synovial. he comes to us from houston. welcome. good to have you with us. let's get to the specifics of what you know. what is going to be the practical effect on your company in terms of the price of the inputs to your product because of these tariffs? john: we were disappointed to see the tariffs. anything that goes against having lower prices and more competition and more choices for consumers, we certainly don't like. but i will tell you at the end of the day, we are not deterred at all. we see our growth in the growth of the industry to move forward, particularly on the residential solar and batteries side of things which is what my company does utility scale will be more impacted.
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overall, i think we will continue. i'm very confident we will continue to see solar and at aries march forward blistering pace of growth for the industry. david: will the price of the inputs to your products go up? will the prices you have to charge for your products go up? in certainpossible areas that it will. again, the price declines overall for the last few years have been breathtaking. to see that. when i am watching more so than solar panels are batteries. that becomes particularly important in states and cities like houston and dallas that have never had any sort of supportive local policies, such as net metering, worried you can move -- where you can move it along the grid. batteries are critical. batteries have started to come down and costs at a rapid pace. but is more important as we move forward in the industry than anything else on the margin. there will be other components
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that will have to come down in price to accommodate the increase. i see a lot more solar and battery installed under president trump. president trump can become the solar and battery president, and i am confident of that as the industry continues to move forward with its rapid growth -- growth. shery: president trump's reasoning for the tariffs was are -- was in order to help u.s. any fracturing. there are many jobs in the solar installation sector as well. how will this impact the job market here in this sector? john: that's a good question. i'm very concerned about the utility scale installers for those projects. that will probably be impacted. is not goodn, it it for all of our partners in dealers that go out to our customers homes and do a fantastic job and our hard-working americans i go out there and sign folks up for solar service agreements.
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both solar panels and batteries in their homes. i'm hopeful that there is a little bit of a balance here that the trump -- that the trump administration will strike. i hope the president holds their feet to the fire to put in the capital, grow the manufacturing grade -- base, and deliver on the jobs they promised. i expect we are also going to see, regardless of tariffs, more manufacturing capacity in the united states over the coming years. i expect to see that as well. all in all, putting more capacity to build more solar panels and more batteries, which a lot of those announcements have been occurring over the last three months, overall will have a positive impact on the industry and will continue the long term very quick price decline that we have seen. developers have been
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stockpiling these panels ahead of this decision, trying to preempt that. did you have to do that as well? how does it affect your future projects? john: that's a great question. we did not do that. primarily because the price of this action has been reported by is largely priced in. there is an increase in panel prices that occurred all last year as the market was anticipating this action to be taken. it was a little bit less than what is built into the marketplace. we anticipate over the coming year or so the panels to decline a little bit and price. maybe they will stay at the current price. again, i'm hopeful that is enough of a price and covenant because it is quite a bit above -- and confident because it is othera bit above companies to grow the solar industry quite a bit larger and the united states. david: i want to ask about
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puerto rico. we have read a lot about the problem with the electric good down there and the possible solar panels to help them. where are we right now in terms of installed solar panels to help that situation? john: that's a great question. we are very much involved as you probably know. both prior to the storm and post the storm, and our commitment to alwaysrico is very much going to be there. we have a high degree of commitment to the people of puerto rico, particularly our customers. i think the governor's announcement moving to the competitive market was the right way to go about it. i think, the devil is in the details, but we are a big fan of open, competitive markets. we would like to see that across the united states. for puerto rico, even the island, there will be another storm. we just don't know when. really stood the
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test of some very strong winds and flooding. there was some damage to we are working to compare -- repair that. however, it was a very resilient system. when you start adding batteries, which were not available prior to the storm, in any quantity, we are trying to do that as well as others as fast as we can to puerto rico for our customers. you are going to have a very andlient power system puerto rico will be an example not only for the united states on how to lead the economy and grow a different energy business, but for the entire world. shery: 15 air about that john berger. -- thank youmuch, so much john berger. abigail: that is a strong characterization in terms of what you said. very accurate. highs. day of record this follows yesterday's rally of record highs on the hopes
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that did country that congress would pass a short-term funding plan for the u.s. government to keep it open to february 8. gainss point, muted some of the tech heavy nasdaq up the mess. being held by amazon and netflix. this is not a complete on risk picture. take a look at the 10 year yield, haven bonds are rallying for a second day in a row. let's take a look at why the dow is underperforming. are the biggest drags on the day. johnson & johnson down 4% on in-line fourth-quarter results. we also have the bloomberg scoop of the company's patent that they lost in the ruling further top-selling arthritis drug, investors not liking that. procter and gamble down 3.4% after putting an inland. more growthnting there. goldman sachs, down 9/10 of 1%. perhaps being dragged down by yields falling for a second day in a row. that certainly does not help the
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lending activities. where we have strength, you were, up 4% are talking about the tariffs imposed by the trump administration. up to 50%include the tariff on large washing machines. here we have whirlpool trading higher. investors chairing the fact that the company is adding 200 jobs --this after completing investors going after foreign competitors. the mexican peso a bit of a tariff reaction. this is a one month view, falling against the dollar -- excuse me, the dollar falling against the mexico peso. the dollar meet -- beating the mexican peso. be trump administration may -- a look ahead of what could be ahead for mexican manufactured goods and in overall picture. david: thanks so much.
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coming up, we will talk trade with jorge castaneda. live from new york, this is bloomberg. ♪
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♪ david: this is "bloomberg markets: balance of power." i'm david westin. shery: i'm shery ahn. let's get a check of the bloomberg first word news. mark crumpton has more. mark: jeff sessions was interviewed last week by special office.robert mueller's a justice department spokesman said sessions was question about possible russian meddling in the 2016 presidential election and whether president trump has obstructed justice since taking office. this is the first time mueller's team is known to have interviewed a member of the president's cabinet.
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kentucky governor confirms one person was killed this morning in a high school shooting. nine other people were wounded. officials say a suspect is in custody. the fbi says it is working with state and local law enforcement in responding to the shooting. it happened in the town of ben 10, 120 miles northwest of nashville. a new international partnership against immunity for the use of chemical weapons has been launched in paris. the plan championed by the united states and 20 other countries, seeks to better identify and punish anyone who uses chemical weapons. secretary of state rex tillerson called out russia following new reports of a suspected chemical attack in syria. >> there's simply no denying that russia, by shielding its syrian allies, has breached its commitments to the united states in the framework. it has betrayed the chemical weapons convention and un security council resolution, 2218. and on these occasions, has
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quite -- twice vetoed resolutions to enforce the joint investigated mechanism and continue its mandate. tillerson added "russia's failure to resolve the chemical weapons issue in syria calls into question its relevance to the resolution of the overall prices." the shape of water leads the race for the academy awards with 13 nominations here the fantasy drama was nominated for best rector, and aor handful of acting awards. -- thee epic dunker oscars will be handed out march 4. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: thank you. president trump is making trade a priority for his white house. an act in the first protection in his policies long promised.
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tariffs on foreign made of solar panels and washing machines are made under a provision of u.s. law, section 201 allowing for safeguard tariffs. this measure has not been used since president george w. bush did that in two jorge castaneda thousand take. we welcome -- we welcome jorge castaneda. your timeso much for today. how similar is the trade atmosphere right now from your time when you are serving as foreign minister? jorge: it is dramatically different because president bush, as president obama after him and president clinton before, were favorable to nafta, all great supporters of nafta. and although there were trade disputes between mexico and the united states under each one of these presidents, they were handled and a pain -- peaceful, harmonious way.
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now we have a president of the anti-nafta,s who is and up to a certain point, one could say is anti-mexico. the atmosphere is totally different. shery: who is mexico negotiating with? you have served as foreign minister. give us a sense of who mexico is negotiating with? we are hearing the foreign minister of mexico who has close relations with jared kushner and general kelly. jorge: nominally, the mexican i understandr, who was on bloomberg this morning from davos, negotiates with both robert lighthizer, the ustr representative as well as with wilbur ross, secretary of commerce. in fact, foreign minister who has a senior position in the cabinet, has his own back channel arrangements and discussions, both with jared kushner and john kelly in the white house. sometimes, this is a good thing. sometimes it is not.
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because you can get all sorts of things confused. you don't really know who is in charge. you don't always know which of the channels has the president's blessing. in this case, one can suppose that kushner has the president's blessing since he is his son-in-law to you can't really know that for sure. it is a little bit confusing who is negotiating what. i guess this is not new in the trump white house. i guess everybody else has pretty much the same problem. even the u.s. senate. foreignrom your time as minister of mexico, you have been involved in complicated, difficult international negotiations. can you see a path from mexico's point of view, if you were advising the president now, of mexico, how would you advise him to move forward to get to a good result on nafta? jorge: i think there are two things i would suggest he would do. the first is u.s.-mexico's -- is mexio's bargaining on
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security, drugs, intelligence gathering, and other issues where mexico has important bargaining chips which the united states needs dearly. use those chips to tell the americans, if you were not forthcoming on trade, we are no longer going to be forthcoming on these other issues. thatw that is a tough talk i am suggesting, but if we don't tough talk and the americans do, we are trouble. the second suggestion i would make, which is going to happen for sure, the first one may not, is that at some point, the -- he is goingnt to have to suspend the negotiations if a deal is not struck soon. a president who was a lame duck cannot negotiate some -- such an important agreement for next go as is nafta and the last months of his administration. there will be a new senate and after julythe way,
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1. and mexico, the senate has to ratify a new nafta bike a two thirds majority. probably what the president should do is kick the can down the road and suggest that these negotiations be handled later on by mexico's new president and mexico's new senate. david: if he wants to get a deal done, how long does he have? you said it has to be soon so he doesn't get in the way for the end of his term. what is the date he has to get something done by? elections are on july 1. it seems inconceivable that a lame duck president, when there is already a president-elect, would continue to negotiate something this important. at the very latest, the deadline is july 1. but in fact, it would not be great for a lame duck president to be negotiating such a major trade agreement for mexico. let's say a month or two below the elections, i would imagine that somewhere around april 1, when the last three months of
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the presidential campaign begin, would be the deadline for him to get a deal. quite frankly, i don't see how a deal can be reached. i don't see any way that can happen. david: thank you very much for your time today. that is former mexican foreign minister, jorge castaneda. still ahead, the special counsel's investigation has reached into the president's cabinet. what could this mean for the white house? we will talk about that next. this is bloomberg. ♪
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♪ shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. new developments in the mueller probe, the special counsel's investigation has rich into president trump's cabinet. attorney general jeff sessions was interviewed by members of robert mueller's team last week. we are deputy managing editor of u.s. governor, kevin, from washington. question, as far
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as we know, is jeff sessions a potential person of interest that is a potential target, or is this as a witness to other things? kevin: we don't know the answer to that. there is no end -- the mueller team has been interviewing a whole host of people, including anyone who is associated with the foreign-policy team on donald's campaign. team.ns helped lead that there might have been a set of questions that would be relevant to the things we arty know that mueller has been asking other people about. usesso wrote a memo that part of the justification for the firing of fbi director jim comey. that would be another area of questioning we know that mueller has been looking into. as far as we know, he was interviewed as a witness. it's unclear if it was anything beyond that. it's not clear he took a criminal lawyer to the meeting. maybe that is a sign he thought
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he is mostly there as a witness. i think everyone will be trying to figure out now exactly where that is. the smaller probe -- as the smaller probe is going on, we've only seen the little glimpses of what he is looking at. republicans want an investigation into the russia investigation whether or not it is tainted by fbi bias. did we get anything from the attorney general on this? kevin: there are various questions on this. the republicans have had all kinds of attacks on where the fbi and just department is. sessions started a handful investigations. the inspector general is looking into the way the fbi and justice department is handling the probes out there. no conclusions drawn, there's nothing else there that anyone has come up with. david: did the fact that he is reached out to the cabinet level indicate that mr. mueller is well into his investigation, coming to the end? lot -- that isa
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the way this often is. we know he has had a handful of conversations with high-level people. we know jared kushner, trumps son-in-law -- trump's son-in-law was in there with mueller. he was a witness to a particular set of things, but we really don't know whether we are still at the very beginning or starting to wrap up at the end of this investigation. shery: kevin, thank you so much. up, the president celebrating a big win for republicans after ending the government shutdown we will be speaking to larry sabato. this is bloomberg. ♪
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david: since bloomberg markets -- this is bloomberg markets: balance of power. i'm david westin. shery: i'm shery ahn. tone in thesitive
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market. the dow is down slightly. is being lifted. we also have pretty strong corporate results including from netflix. tech shares are higher. the nasdaq up .6%. david: let's get to the headlines. chuck schumer told the white house yesterday that funding for a border wall with mexico is now off the table. that's according to a senior democratic aide. last week he offered the $1.6 billion that president trump requested to build the wall while negotiating the government spending bill. canadian prime minister justin trudeau says the country's remaining in the transpacific partnership have agreed to a new trade deal one year after the u.s. withdrawal. statement at the world economic forum in davos. agreement was confirmed by the canadian international trade
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minister. the agreement could be signed by early march. in eastern oklahoma five employees missing after a natural gas well explosion are presumed dead. the wells owner is pledging a full investigation. the blast happened monday at a drilling site about 100 miles southeast of tulsa. thanks to the government shutdown ending monday nasa tv returned to the airwaves today just in time to transmit live images of two american astronauts making repairs to the international space station. space as thed of international space station passes over the north. pacific ocean. spacewalking astronauts were installing a new mechanical grip are on the international space station's robotic arm. the repairs were because of wear and tear. spacewalking astronauts 2000t has been in orbit since
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one. space station operations were largely unaffected by the three-day federal government shutdown. central personnel such as mission control kept watch it the johnson space center in houston. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. hailedpresident trump the end of the government shutdown as a big win for republicans claimed democrats had caved as he signed a bill to end the three-day shutdown. -- not surprisingly some democrats don't see it that way. the decision to go ahead with temporary funding -- here to talk more about the political sabato.is larry welcome back. good to have you. therewith reports that are real divisions within the democrats. we have heard some saying they agree with the president that mr. schumer caved. >> those democrats mainly come
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from the left. many of them want to run for president in 2020 and they are catering to the base which is what people running for do in both parties. i understand where they're coming from. do in both parties. i understand where they're coming from. i would say this wasn't the democrat's finest hour. i can't imagine anybody disputing that. they didn't have a real plan. they didn't have a strategic plan. once they entered the shutdown they didn't seem to know where to go or what to do. they would have been better off not having the shutdown because history tells us at least recent history tells us that parties pushing for government shutdown usually don't get what they want and often look bad doing it. all in all they shouldn't have done it. hindsight is 2020. everybody is going to move on. we will see what happens in three weeks and the election isn't until november. david: is there any lasting effect going into the election? will it affect their quest to take back the house and senate?
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>> this will not have the slightest effect as long as there isn't a series of government shutdowns that last for months or even intermittent shutdowns that involve a few there so that it continues to be in the headlines. if this was a one-off for 2018 almost no one is going to remember there this in november. maybe a few candidates will put it into tv ads. probably most people watching will have to sit and think what they're talking about. remember people will everything heading into election . they don't. shery: president trump stayed out of the way largely during the negotiations this weekend. was this the right decision when it comes to the optics for president trump? that's a good question. if you ask the republicans on congress they were thrilled that somebody kept president trump quiet.
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thinking was that anything twitteror did even on really but certainly in person could have inflamed the situation and made it impossible to get the government open quickly. twitter really but certainly in person't involved and that teaches you a lesson about donald trump in this current white house. learning athey are few things about controversies. we will see. shery: it seems the optics is that the president is not really as thed in other matters economy. american consumer confidence is a multiyear high. the approval rating for president trump is still low. this divergence is very rare. are we going to see the economy. american consumer confidence is a multiyear high. approval ratings catch up to how americans feel about the economy or will they keep diverging? is the key question. is donald trump's popularity a lagging indicator? solidifies will
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he gradually be pulled up by this strengthening economy. it's possible. i wouldn't bet on that simply because i think people made up their minds about donald trump a long time ago. whatever their view was it has been reinforced 100 fold by the activities of president trump as president. there aren't a whole lot of people who aren't in their foxholes already on donald trump and they are not going to switch sides. david: where is the country right now on right track versus wrong track? people didn't have a very high opinion of president trump as a person but were very happy with the job he was doing and where the country was headed. >> yes. clinton was clearly in charge and he was a highly articulate president who was out there making constructive proposals even if they never came to be on a daily basis.
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he had a very different image than president trump has. i don't think people believe that president trump is really in the thick of things. he's kind of proven that he's not the dealmaker he said he was during the campaign. so that has a big effect. you don't know the future. a lagging indicator. maybe you will move up. i wouldn't put much money on it yet.r it -- on it david: they've still got some big issues. they have to get a big deal that daca and the wall. who is going to be leading the charge? >> one would assume it would be the group of bipartisan senators who helped to piece together the ending of the government shutdown over the weekend especially on sunday. there's got to be the ones who bring the parties together and the party leaders together. senate. do it for the i don't know who's going to work on the house. don't think paul ryan controls
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the republican caucus. president trump has influence with the more conservative members but it is clear he can push them toward a compromise. that's what's going to have to happen if we are going to avoid another last-minute close to midnight shutdown. shery: yesterday president onmp's first major tariffs solar panels and washing machines. how is this going to appeal to the gop base? is this going to appeal to the base? >> i would assume so. it will appear -- appeal to the s there ists no more old party. it's leaving. . the jeff flake are going. the bob corker's are going.
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i doubt we see the republican party for the near term moving back in the other direction. like whatoing to president trump has done. he will explain it in terms they understand and they will believe he is fulfilling the mandate they gave him in november 2016. shery:understand and are you exx cuts to filter through in gop and president trump's approval ratings anytime soon? before the midterm elections? be surprised if it filters through for president trump. it may help individual members of congress in their races depending on who they are how they position themselves and who is running against them. this is a patchwork of local contests. this isn't a national election. localities and congressional districts will have no race at all. eachave to look at individual race and i think some
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of them will be held on the republican side by the tax cut assuming people are really helped the way they said they would be and that remains to be seen. thank you so much, larry sabato. coming up we will hear from canada's finance minister. what he says about nafta talks and canada's response to u.s. tax reform. this is bloomberg. ♪
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david: this is bloomberg markets: balance of power. i'm david westin. shery: i'm shery ahn.
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shares of whirlpool are rising after trump signed a tariff on washing machines. saying he is imposing tariffs on solar products. it added 200 jobs in anticipation of this terrorist. joining us now is taylor riggs. the chairman came out with a press release this morning saying up to that 50% tariff would help them create jobs in ohio, tennessee, north carolina and kentucky. that he added in anticipation of this was in ohio. in 2011m really began when world. its first antidumping petition with the u.s. international trade commission. as theyief for them start to see some resolution from that.
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we can see how this is important to them on a relative basis. about 20% of the revenue comes from these appliances including washing machines. about 5.8 billion dollars in revenue for them. second place as refrigerators and freezers. it's a win for them and they get over half the revenue here in the u.s. sort of an important role to keep the market share. david whirlpool is benefiting. at whose cost? samsung and lg? >> yes. particularly some of the analysis said that lg will be hurt more. some of their operating profits and margins will be under pressure a little bit more than this. we have a chart showing lg's margins in particular. they get 30% of their revenue in the u.s. and their washing machines make up more than half of their operating profit.
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you can see how this could really impact of them. iny were looking to open up 2019 their first u.s. factory that would be based in tennessee. whether that helps to warm up relations i guess remains to be seen. shery: the president just signed that trade action. the action will encourage lg to make machines in the u.s. we will bring you the tape light back when we get them. the recent tax overhaul brings u.s. corporate rates more in line with other nations including canada. canadian finance minister sat down with francine lacqua in davos and discussed how increased american competitiveness affects his country. >> the american tax plan is a big change but it's not one that is that different in terms of where the eventual rates are versus canadian situation. average corporate rates for example in canada are both money
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7%. the way we look at it is this will bring average rates in the united states 26%. we are looking carefully at it. we do think obviously it's going to have impact on some sectors of the economy and we will carefully analyze that. we intend on staying competitive. does that mean you would be willing or at least looking at changing certain corporation taxes for certain industries? we have to say is we want to make sure that we are competitive and we do think that we are competitive. think this change obviously has some impacts we need to analyze more closely to better understand. francine: the growth of canada is one of the highest in g7. it could slow to the love average -- below average of the g7 group. what we have done since we
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have come into office as we have been very focused in investing and canadians. we took a very clear approach to lower taxes for middle-class canadian. we raised them on the top 1%. tested our child benefits so that nine out of 10 families got significantly more. that provided some real impetus not only for our economy but also helps those families to be more confident. going to be looking on a continual basis how we can make sure that women are successful so we can have better outcomes for women as well as better outcomes for our economy. we have much more to do. the growth rate we have seen over the last year has been the number one in the g7. we are starting from that very strong base to look at what we can do in 2018 and we are optimistic. david: that was canada's finance minister speaking in davos. president trump has just now
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said that as far as he is concerned the nafta talks are moving along pretty well. we will bring you the tape lay back when we have it. coming up, mark short tells us where he sees those daca negotiations headed next. live from new york, this is bloomberg. ♪
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shery: this is bloomberg markets: balance of power. i'm shery ahn. david: i'm david westin. the deal struck yesterday to fund the government just gives members time to come to agreement on the status of dreamers and border security. we talked with the white house legislative director about what such a deal might look like. >> we are making significant progress in negotiations on immigration and daca. democrats moved significantly in understanding what the administration's request were for border security.
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here's where we have the biggest lapses in our border. they were beginning to accept the presence proposal makes sense. our side was accepting their request to expand the population that would receive legal permanent status meeting the 690,000 people in the so-called daca program between age 16 and 36 to have work permits democrats have said there's a lot of people afraid to come out of the shadows or unwilling to register and you need to include them. i think we are making significant progress before the democrats chose to shut down the government. i don't think we are going to be there again on february 8. we also need budget caps in place so we can get the government-funded for the next two years. david: let me get a sense of what would make the deal. what i have heard from chuck they are now saying ok
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fine there can be some form of wall. how big does it have to be and how much money do you need to get appropriate for southern border security? >> the request for the next seven years the customs and border patrol official has put forward is $33 billion. that includes the technology the democrats have traditionally been ok with. that is a multi-year requests. in the past democrats have voted for wall funding that is but it's a clever game in washington because you authorize it never -- but never appropriate to dollars. if we are going to vote to support what we think is needed let's make sure the money is appropriate with it this time. david: that was mark short. we turn now to kevin cirilli who spoke with mick mulvaney about the same subject. i want to ask you about these
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headlines just crossing the bloomberg about the president as he is signing these tariff orders. he thinks the nafta negotiations are going pretty well. he is still thinking about those tariffs on aluminum and steel. >> president trump shocking the chinese as well as south korea with these up to 50% tariffs on washing machines and solar panels. president trump signing those executive orders despite criticism from global leaders. on the flipside he also forced to some -- poured some cold talkson reporting about deteriorating amongst mexico and canada with regards to nafta saying those talks are going well. what you raised about the issue of aluminum in particular has really divided and thwarted these talks.
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it's going to be interesting to see how the backdrop of what the president and this in ministration has done with negotiations in the chinese might potentially impact that. we have been reporting the signal is going to come from when president trump and this administration signals to congress that he wants to fast-track authorities to advance nafta. right now we don't have that. shery: we are seeing the mexican peso rebounding. president trump also saying he's not concerned with that of mueller and attorney general sessions. let's turn to immigration. we spoke to the budget director. what would it take to get a long-term deal on immigration? >> he's confident there's going to be a long-term deal on immigration and he alsowe spoke. says democrats should take mitch mcconnell at his word when he says they want to address immigration ahead of the march 5 daca deadline not to be confused
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with the february 8 deadline. the president wants to solve daca. he wants to solve immigration writ large and you have to do it as part of one package. and nott solve daca solve immigration. then you are just setting yourself up for another problem in the future. ambitious director mulvaney saying they believe they will address daca and keep the government-funded. the president giving his state of the union address next week to set the stage for all of it. david: we also saw chuck schumer say he wants to take back off the table the down payment on the wall that he made. it >> seems like he's going backwards. great point. i have spoken with several aides to democratic members who are telling me that there is frustration in the ranks. with minority leader chuck schumer. the fallout of that and whether a dealhe is able to get
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to keep the government open could have implications for his leadership future as we head into the midterms. kevin cirilli, thank you. sign up for the balance of power bloomberg.com. get the latest on global politics in your inbox every day. sharminp next, mossavar-rahmani will tell us why the firm's remaining overweight on u.s. assets. david: you can catch all of our interviews on bloomberg with the function tv . go to your terminal and put on tv . live from new york, this is bloomberg. ♪
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scarlet: i'm scarlet fu. and i'm julie hyman in for julia chatterton. welcome to bloomberg markets.
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>> that's why the stock market is reacting the way it is. think you all very much. i didn't but i am not at all concerned. thank you all very much. no. he didn't at all. he did not even a little bit. he's going to do a good job. we are looking at a lot of things. let's see how it all looks out. thank you all very much. there will be a trade war by the way. stockwill only be increases for the companies that are in this country and that's what happened today if you look at solar and the washing machine compans.

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