president trump to join a conference on the 28th. this will be an opportunity for the people and representatives to hear directly from our new president about his this -- vision of our new shares agenda. income -- incoming presidents are invited typically to speak. canada and mexico in 30 days to discuss his plan to renegotiate the north american trade agreement to protect training. canadian officials seem more concerned about avoiding unintentional damage about the economy and has not been given details but he claimed it for the loss of u.s. who called it in u.s.t trade deal history. the president half pick for budget director the -- says -- at a senate

confirmation hearing today. the cubs men from south carolina says a 20 joined our national debt is the equivalent of an -- nary at -- american officials say flip's water system no longer has -- exceeding the limit. good news for a city whose hundred thousand residents have grappled with the crisis since 2014. state officials say the levels are now comparable to other u.s. cities. global news 24 hours a day powered by more than 2600 journalists in anil dash and analysts in more than 120 countries. this is bloomberg. scarlet: live, i am scarlet.

30 minutes away from the close of trading here in the u.s.. major indexes. joe: the question is, what to do you miss? keystone and to code a pipeline were rejected under the obama administration. you k's court ruled theresa may must get approved -- must get approval. plus, erik schatzker sit down with the cofounder of investment banking firm o'neill on what a new president will be a friend to wall street and dealmaking. the let's look at where major averages stand. abigail doolittle is standing by. abigail: major averages in the u.s. going to the close, the dow s&p hundred and nasdaq all higher after opening

unchanged. fluctuating a little bit and into full rallying mode here the s&p 500 carving out all-time highs today for record closes. than 100 points, about 80 points away from dow 20,000. little off their highs but nonetheless, strength here for u.s. stocks. it extends more. the dow transport, and the philadelphia summit index, stocks all trading sharp a higher. the indexes are associated with bigger growth. continuing the trump trade and the idea that those policies could help what is related for those. a really nice strengthen their for chip. client --ing my

micron is trading nicely higher on comments about the pricing market, and this is something that has in helping it for quite some time. we also have broadcom up nicely on a price you are already seeing taken higher. a path to $300, quite a bit higher than the stock now. morgan stanley believes broadcom can out pace the industry and go along for the ride. also today, some earnings winners, all of these have put up nice beats relative to the quarters. andaba raised the outlook investors are clearly liking that. the ceo says he believes the dower with dow chemical -- chemicals is on track. an update on jpmorgan, the analyst believes the company is on pace for a nice growth. kimberly-clark put up a nice

quarter. the management at kimberly-clark is the second half growth is very likely to outpaced the first half growth. investors always like a bullish future look. joe: thanks. today, president trump met with top automaker and he pushed car production in the u.s. and boost american employment. president trump: we have a big push on to have auto plants and many other plants are you are not being singled out. a lot of plans from a lot of different items built in the united states. it is happening bigley. trump has said to use is including import attacks on american companies that put products overseas or to talk about the implications, the

director of global strategy for eurasia group. great to have you back on the show. what do you may of trade noises as he has expressed them so far? where do you see him taking it? >> right now, it harks back to something that may be one of the most consistent facets of his ideology going back to the 1980's. the idea that trade deficits are a sign of american weakness, that we made bad deals, the way you make america great again is by producing more fear and that feeds back to the concerns of his swing electorate in the rust belt, it harks back to the american carnage reference in the inaugural. scarlet: we have headlines here from transcanada crossing the bloomberg now. it intends to reapply for approval of the keystone pipeline and it says the xl pipeline will add more than $3

billion to u.s. gdp. this comes in a comment on a keystone application three mao p return can do says it doesn't tend to reapply for keystone approval after the president issued a memorandum saying he is moving forward on perhaps constructing the pipeline. contradictions with this administration it seems so far is that many of the policies the administration likes are seen as bullish and yet trump himself has argued the dollar may be too strong, trying to jawbone it down. is there a way to reconcile these two things? some extent. you have a fiscal policy where you want expansion. a monetary policy potentially will be tighter as a result. then you have trade measures that are potentially inflationary because they reduce the ability of the united states to reduce goods overseas. that seems to

indicate a preference for a weaker dollar. the only way everything makes sense, and this is a good outcome, is if you do have a lot of untapped slack in the u.s. economy. what ends up happening in that is the fed is allowed to be dovish. the fed does not have to hike anywhere near as much as it thinks it does because you can do the fiscal expansion without setting and gear inflationary pressures. scarlet: how likely is that pressure you just painted? >> it is possible. one of the problems there is the jivey does not necessarily with that. some things he is talking about on the trade front mean that instead of importing disinflation from the rest of the world, you may be forcing companies to replace what is located overseas at home. you add on the call for labor demand.

it depends on how and over what stretch of time it happens. the best case scenario is literally that there is a ton of slack in the economy waiting for and inflationary pressures in the united states. that is kind of your goldilocks. joe: an interesting thing to think about which rating partners, take china being the obvious example. it seems they have a policy very much designed to boost exports. trump does not talk about exports very much. it does not seem like a big thing to him. ,t is really just about america making here in selling here, and p on that, he does not seem to care much. what are the implications of thinking about it that way? >> to my mind, that is one of the issues here. in economic history terms, the last think about it is that you have seen episodes of government

interference with the economy, perfect -- protectionism, but it to get tot export, the technology frontier because you are competing in the global marketplace even if you're interfering with domestic capital allocation. the model has been quite successful. what is potentially different here, which goes back to alexander hamilton, the difference between government actions that protect industries and those that protect industries, the import substitution protects industries that are competitive, and does not necessarily do that much for medium-term growth potential in the united states. manufacturing industry -- it is hard to generalize, but his auto manufacturing and industry? >> the fact is there other people the world who do the same

things we do as competitively, potentially with a lower inflation cost. there can be more danced manufacturing, but it really strikes -- one of the things about this, we seem to be using policy to protect industries. scarlet: you mentioned earlier it is likely to be inflationary. regardless of whether potential fed members are hawkish or dovish, i suspect an article of faith across the board is they believe in comparative advantage. whether or not they are republicans or democrats are to find a nominee who does not describe to that i think will be quite difficult. joe: director of strategy, we appreciate you coming on. breaking reiterate

headlines we got during this segment earlier today. donald trump signing a memorandum, keystone xl, up 2.5%. transcanada saying it intends to reapply for keystone approval and suspects keystone xl will add more than $3 billion to u.s. gdp. trump's memorandum does not immediately get it going. they have to reapply, a strong indication of a green light, unlike with obama. you see the stock moving higher. it would create thousands of construction jobs. from banking dealmaker o'neill and partners, we have got more coming up. this is bloomberg. ♪ thousands of construction jobs.

on: erik schatzker sat down the current level of optimism. three months ago said they were never do business with the current president. justople underestimated had that the last eight years have been. night was anion unbelievable thing to say. i misquoted him. that is exactly right.

i think the employments are very positive. i am optimistic. we will give them a chance. a lot of these are fantastic. i think he is a fantastic choice and i know them. i would not have had the nerve to put them up. i think it is a great choice. a number of these are good. drill deeper, is it about regulation, and tax reform, or something else? >> for dimension -- four financials, rates, regulation, and return. i think regulation has gone so far. and 2007.b in 2006 you give the same people the , as a smart front

of my one said, and put it out of business. will notem is it happen overnight. there is a believe this will change and it will not. this is deep and cultural. we've moved away on financials. i think you will see three rate hikes next year. ago, that could be real positive. >> in his former life he four he became the president come he proves himself and unpredictable character. learned a few things about the way he conducted himself. i watch the whole thing. that is his charm.

i wish he would not get on the i think when time he goes too far the other way, you look at all these colleges, hey, we had an election, that is what happens. there will be consequences. it does not go your way, you are american, act american. i think some of that will help. >> let's talk about your business. a very focused firm. brokeragecompanies, firms, if you look at your how thease, can you see trumpet ministration or his era -- will be concerned. >> i can see from election night

thanks the and these in general. people are raising capital. i think the real possibility of tax reform is the one thing that will happen. paul ryan, the congress and the house. it tax form --t -- is a good thing

>> donald trump passed off -- passed up few opportunities to bash wall street. >> what i'm concerned about is that if he is good for the american economy, that will be good for wall street. i do not care if he has got a weak spot for wall street. if the economyut is better, that will be plenty to do. he does not need to be pro-wall street. he is just -- he should not the word about wall street here he should be worried about what he is worried about. street ceo was here at bloomberg offices and told us he cannot say whether his company and write it will extend a deal to merge just

three days from their agreed deadline two days before the transaction. they had agreed to close the $9.4 billion merger by friday but the deal has not gotten the blessings of antitrust agencies. the federal trade commission has actually thrown up roadblocks and said they're not buying the whole idea that wall street plant -- reduces competition or increases competition enough. >> a measure of how much right aid is on social media. right aid, people are tweeting about a whole lot. mostly neutral. the stock is not doing a ton. this is getting people's attention that the clock is running down. at this on you look the bloomberg here, it is

notable that we see a big spike in readership for news and that speaks to how much of a surprise this must -- this might be. just 2% stock is down or coming up, after plummeting the financial crisis, employment in the other sector would cover thisficant ground during obama presidency. can trump continue the trend? this is bloomberg. ♪

scarlet: president trump met with the ceo's's of detroit or devout to bring back manufacturing jobs to tax cuts. here is the thing. he is up against some tough comparisons. this tracks total auto manufacturing payrolls. republican democratic administration --

follow the bankruptcies of chrysler ngm. donald trump did not invite ceo's these of the company to the meeting. i guess the goal is to bring about the levels seen in 2000. a long way from the deaths -- depths of 2009. joe: i'm taking a look at volatility to measure how traders are thinking about lots of talk about how why volatility is so low. way, twon interesting different measures. a standard measure of implied volatility that everyone knows about. it is very low. it is about as low as it has been in several months. that.her pressure on

basically, that is really elevated these days. you can see if we go back, they tend to move together, though not perfectly. a lot of people watch the big gap. in the short-term, not a lot of concern or implied volatility but a lot of concern, people protecting against the movers. how do they adjust their portfolios for that potential tail risk? >> it is a good question. the market close is next to nothing that here if you are long on usa it is. the s&p and nasdaq are on their at record highs.

the s&p is up by 15 points and the nasdaq adding almost 15 points. for the dow industrials. this is bloomberg. ♪

scarlet: we've got breaking

news. canada's prime minister holding a news conference right now, coming on the same day president donald trump took action aimed at advancing the keystone pipeline. he spoke tong president trump about the benefits of the keystone and talked about jobs for the province of berdych. he declined to talk about details but transcanada said it will reapply for that hartline project. adding billions to gdp and creating thousands of jobs. and the closing bell here in new york, the s&p 500 and nasdaq closing at record highs, the dow advancing 113 points. i'm scarlet fu. and i'm joe weisenthal. if you're on twitter tuning in, welcome to our closing bell coverage every weekday from 4:00 to 5:00 p.m.. scarlet: a record day for the

s&p 500 and the nasdaq. the dow did not quite get there. it did get fairly close to the 20,000 mark, the closest it's been in a couple of weeks but could not get there in the end. that s&p adding .6%. the news this afternoon was president trump signing a memorandum advancing the construction of the keystone. maybe that is why investors are so happy today. scarlet: and mentioning that the nasdaq and the s&p closed at record highs. theselisten in on headlines out of the press conference in calgary, we also see canadian energy stocks climbing as well. s&p has boosted the toronto by .8%, the highest since 2014. we also had earnings coming from

verizon, johnson & johnson, and lockheed martin. numbers there. joe: and looking at the government bond market, yields higher across the board. good data out of the u.s. which we will talk about in a little bit. a reversal today, not quite all the way but you see it was higher. turkish yields down today. the central bank of turkey hiking rates but not as much as expected. lots of people thought they were going to do more to stem the weakening lira. causing a little bit of a drop in yields there. thelet: a mixed day for u.s. dollar. let's focus on the british pound. seeksa may needing to tarlow entry approval to trigger

>> it. losing .25%. i'm glad you mentioned turkey. it did raise lending rates by 75 basis points. the dollar rose .6% versus the lira. the next big hurdle is the late liquidity window. month chart, you can see it depreciated to a record low. since then it has been bouncing around and remain stuck in that range. a quiet day across the board for commodities. gold not doing much, gold has treasuries has, pretty quiet today in commodities. scarlet: let's go back to the breaking news in calgary where prime minister justin trudeau is holding a news conference

following a cabinet retreat. hein, he is saying that spoke to donald trump about the benefits of the keystone pipeline and says that keystone will deliver jobs for the province of alberta but declined to comment on specific details of the keystone negotiation. we will continue to monitor these headlines for you and bring them to u.s. this continues. this comes on a day that the president just signed a memorandum advancing construction of these pipelines. it was not a done deal, but it moves in that direction. joe: let's bring in our senior white house correspondent. margaret, what is the big take away today from donald trump's action? margaret: he wants to create jobs. just kidding. you saw the explosion of activity here at the white house all around this economic message which is job creation, u.s. made products, and rolling back

regulations and punishing folks who try to take jobs out of the u.s.. visited -- had a visit and thereautomakers were a half-dozen executive action memoranda on the keystone pipeline. steel,uld involve u.s. u.s. pipes accessories, and u.s. jobs. and of course we are monitoring the news conference that justin through go is giving in calgary right now. he made some headlines here .bout the keystone pipeline he spoke to president trump about the benefits of it. when we talk about the keystone pipeline in the u.s. we tend to focus on the environmental it'st and the pushback gotten from environmentalist,

which is one reason the obama administration ended up rejecting it. what are the benefits for the united states? are they significant? margaret: when the democratic president was in office, much of the focus was around the environmental debate. now that president trump is in office, it's become primarily a debate about merits and also the symbolism of this in the u.s.. the environmental concerns a flurry of criticism and warnings about this all afternoon. -- there is not a whole lot they can do about this. president trump saying he's caserned about the dakota and that he considers himself an environmentalist, but against too much regulation.

instructing the agency to move forward with considering a resubmission, this is now on track to happen. created,of jobs to be --s is not single-handedly were talking about in the long-term 2000 jobs probably being created. but more than 1000 miles of pipeline in each of these cases, it'sertainly symbolically an important political impact , it was thet trump democrats in 2015 who brought forth the keystone amendment that would say the pipeline would have to be built with u.s. steel and the republicans at that time rejected it. joe: in other news today,

president trump held a meeting with u.s. automakers as they were trying to figure out what kind of trade policy this administration is going to pursue. what did we learn from that meeting? margaret: it's really what we've learned from the first two full days in office, which is were starting to see a lot of the penalties would be imposed. president trump sending a clear message to anyone who will come to the white house and be in the fray with him. he wants them to work with him in some of these midwestern states and he wants to penalize those who don't and act like it is no big deal. automakers on the one hand are very interested and eager to talk about cooperation with him in terms of regulation or deregulation, but on the other hand, in terms of actual

statistics, it may be difficult for president trump to add significantly to the job creation trend in u.s. auto over , market couple of years forces may be going in the opposite direction. for both the president and the automakers there are incentives to talk about these issues. it is not clear how it will play out. question on jim,, the president has asked him to stay on. -- two jim comey. >> it's interesting because we sean spicercretary if he could go ahead and does make it official and tell us that that is what happened and he said i don't have any information for you right now, i went to checking it back to you. we saw hints of this a couple of days ago when president trump hug in themey that

loo room with the lawn for smut officers. many democrats are frustrated after his pronouncements that became public and whether or not that affected hillary clinton's shot at the presidency in the waning days of that campaign. it's something that if he had com oute, ity could have become a huge controversy, so that -- this lays that to rest. scarlet: canadian prime minister justin for no holding a news conference right now. he says that canada will continue to strengthen its asian its nafta and that discussions with the trump team are so far positive.

--also said that new answering questions on a variety of issues or at least addressing a variety of issues, including the keystone pipeline, saying he did speak to president trump about the benefits of that pipeline and that it would deliver jobs for the province of alberta. this is bloomberg. >> businesses and canadian know thatut we also we have a perspective and inlook that is deeply rooted our sense of shared opportunity and respect. ♪

>> let's get to the first word news this afternoon. of president trump's cabinet nominees including wilbur ross and south carolina governor nikki haley as ambassador to the united nations. the full senate will vote on whether to confirm them. callrump administration for an immediate blackout at the environmental protection agency --il specific prohibitions the trump administration has ordered a temporary suspension of all new business activity at the department. are warning not to embassy, warning it could unleash new violence. too urging donald trump not follow through on his campaign

promise to move the embassy to tel aviv. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: thank you so much. canada's prime minister justin trudeau hold in news conference right now following a cabinet retreat in calgary. he's been making some headline saying that the keystone pipeline would mean jobs for alberta and that he it's spoken to the president about the keystone. discussions on nafta with feet from team have been positive so far. we will continue to monitor the headlines as the news conference continues. the pots are betting pies will ease bottlenecks and boost the price of canadian crude oil. the question is, what kind of advantages can canada press as it gets ready to renegotiate nafta?

let's bring in our markets reporter. vince, let me start with you. the canadian dollar has been beforequite a bit even the potential pipeline news broke today and much it was on the idea that canada will be able to negotiate things better for itself once nafta is looked at. it would produce positive .ffect for the canadian economy joe: we saw the loony shoot up in response to the memoranda this morning. what does this actually mean for canada's? economy how big a deal is this? >> one way to interpret it is as a big relief valve. they've use the term collateral damage and essentially donald trump going at -- at -- going after mexico on trade.

they're good with keystone and trade with canada. that extrapolation, i think so far all we learn today is that canadas kindly letting be america's gas station and the idea of u.s. energy independence was always based on of north. in terms of other industries that are very construction intensive, primary metals and shown where trump has protection is leaning, those are the main areas. that is cause to think that maybe we will get lucky on all of them. trump's protectionist proposals about nafta and wanting to renegotiate it, obviously the peso has been taken to the woodshed. is it possible that people are underestimating potential effects on canada if there is some reagan -- renegotiation?

of the things taking pressure off canada, it's come to light that 35 states in the u.s., the largest export market is to canada. the bilateral trade, you take out what luke was just talking about, which is energy exports, canada actually has a deficit to the united states, not a surplus. they are actually a very good partner, so not the same type of pressure as mexico. what were seeing with mexico, the peso has been so low for so long, and it is gaining back some ground. scarlet: we've been hearing that canada has been losing market share to mexico when it comes to trade with the u.s.. canada is kind of lagging behind. >> go back to the dawn of the new millennium, real exports are up 8% and energy exports are up 53%.

but basically all of our growth in the new millennium has come from that energy side and a lot of that does come with the shift to mexico in terms of market share and auto production and u.s. population growth in the south. joe: the left in this country was very anti-keystone. what is the view within trudeau's party on the vision of the pipeline? >> i'm sure there are some within his party that are not necessarily thrilled by keystone xl. he very much struck a centrist message to win the election and he did support keystone and did come out in favor of it beforehand. i don't think it's something that's going to divide the party or cause any of people. scarlet: walk us through this thet that you brought, source of canada's export growth.

the white line here is canada's domestic energy products? that's just the energy exports on a volume basis. essentially what this shows is that you can see the drop in the yellow line, that is canada's real exports excluding energy. when you see the great recession hit and we made headway to get to write about where we were in 2001-2000 two. so we really have not had growth on that side. we've had growth on energy and that seems to perpetuate the issue behind keystone today. trump is saying i want the pipe built in america with american products, so it is perpetuating this issue. ask about the dollar part of dollar-loony. we've had this back-and-forth, one day the administration will try to job on the dollar lower. it drops briefly and then bounces back.

does the administration really have an influence? >> you have to keep it in context. steven mnuchin's comments, in answer to the question of what would happen if the dollar were to depreciate by 25%, essentially he was saying short-term that would be a detriment. it's not really speaking tour the administration's real dollar policy. the state of the dollar going forward, short-term this is dollar positive. a potential 42,000 jobs for the united states and the eta on the pipeline is five years or so. so that will allow exports to be generated to the u.s. long-term. much.t: thank you so we want to give you an update on alcoa, it just reported

earnings. missing the estimate of $.20. fourth-quarter sales topping estimates. analysts were looking for 2.30 8 billion. so i miss on the doll him -- on the bottom line. this is bloomberg. ♪

scarlet: "what'd you miss?" we're going to take a deep dive into the bloomberg. there's a big diversion when it comes to treasuries. let's pull up this chart because you can see it really highlights , when you look at the blue line, which is hedge funds and other speculators, they had

increased their bearish track. the white line is real money accounts like mutual funds and insurance. they have built up their bullish positions. it's become a dramatic showdown. , 75% ofg to jpmorgan the time the market moves the other way from their position over the following months. joe: it's remarkable because they often go in other directions, but this is gotten so extreme, the different views of the two positions. someone is going to make a lot of money. scarlet: we've never seen this kind of divergent, even in previous cycles. this has continued to build and build. joe: i'm also looking at a divergence in my bloomberg terminal. divergence is the theme here. joe: it's the divergence between gold flows and europe and here

in the united states. we've talked about this a few times, seeing near constant outflow since the election. virtually every day since the election the etf has seen money pulled out of it, but it's not the case in europe. that's the gold etf that trades german exchange. last week it saw its biggest inflows ever. that's the european one, the yellow one is u.s.. they've seen some inflows and that sort of speaks to the different anxieties, nervousness over the political risk and all that. theoretically there is political risk in the u.s. but no investors seem to be really worried about it. a last: they have taken half full approach to everything

in the u.s.. they are not positioning themselves for anything bad happening right now. interesting, as gold prices have been doing fairly well since the start of the year. we are monitoring the news conference being held by canada's prime minister justin trudeau addressing a number of issues, including trade with the united states. he said he has spoken with the trump administration about the keystone pipeline and says it will create jobs in alberta as well. this is something donald trump has mentioned, that the keystone pipeline would increase jobs. transitiono said the from fossil fuels is going to take eight long time. scarlet: and the uk's highest court ruled that theresa may must pass an act through parliament before brexit.

this is bloomberg. ♪

>> let's get to first word news this afternoon. president trump signed presidential memoranda today to advance the construction of two controversial pipelines. the keystone -- keystone pipeline was rejected under theer president obama and coat of pipelines have been stalled since november. findings by the department of environmental quality are good news for city with 100,000 residents that have grappled with a man-made water crisis since 2014. lead levels are not comparable to other u.s. cities.

date made the announcement after collapsing while delivering his thee of the state address, 69-year-old democrat said he will travel next week to discuss his prostate cancer treatment options. british prime minister theresa may now has a new set up roadblocks before she can get the brexit process started. the highest court in the u.k. has ruled she must get parliament's permission before triggering the two-year countdown for leaving european union. when the u.k. withdrawals sourcee eu treaties, a of u.k. law will be cut off. further, certain rights enjoyed the u.k. citizens will be changed. therefore, the government cannot trigger article 50 without parliament are the rising that course. >> the decision threatens the prime minister's deadline for

starting the process. some errors of the conservative party are worried she could hurt the economy like jeopardizing trade and control of immigration. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get a recap of today's market action. green across the board, record highs for the s&p 500 and the nasdaq. you see the big gainer of the three major indices was the nasdaq. the nasdaq also doing well -- the dow also doing well, less than 100 points away from the level people had been looking for. scarlet: and breaking news from texas instruments, reporting fourth-quarter earnings of $1. 02. fourth-quarter revenue higher than anticipated and the outlook for revenue is anywhere from

3.17 billion dollars to $3.43 billion. it's higher than what analysts were looking for. they anticipated 3.23 billion dollars. texas instruments moving around in after-hours trading, currently down .1%. brian carter has been promoted to coo of the company. so texas instruments beating when it comes to fourth-quarter revenue and its first-quarter outlook. u.k. prime minister theresa may will be the first european leader through the door of donald trump's white house. she will visit washington on friday, coming on the heels of today's brexit hearing where the u.k. supreme court decided they must have an act of parliament before she can open divorce talks with the european union. on skype injoins us berlin. thank you very much. but your estimation, let's start with the supreme court ruling. does it change anything?

nina: it doesn't change the fact as far as the u.k. will be leaving the eu. legislation might make the process take a little longer. theresa may said she will trigger article 50 before the end of march, so the government will try to push this legislation through both houses with much gusto in order to beat the deadline. think we will see a revolution of them peas revolting and voting down brexit, it is still very much happening. scarlet: the march deadline is what might be in question. this is a self-imposed deadline by theresa may. what happens if she cannot stick her timetable? does that give the advantage to the eu? >> it's a big your elections on the continent. we have the dutch, french, and german elections. once we get into that electoral

theresa may has a strategy here. she wants to say by 2020 that she has delivered brexit, so she wants to use these two years to at least negotiate formal withdrawal from the eu. the next question is, will there , she'sansitory agreement artie made clear that her final -- in the interim from divorce to free trade agreement, will there be a transfer agreement, and that depends on the rest of the eu. joe: as mentioned before, theresa may is coming to the u.s. later this week. she will be the first world leader to visit donald trump at the white house. what do those european leaders think right now about the new administration?

europeantinental leaders are rather horrified by the events at the u.s., and they this as part of the anti-establishment anger. it automatically put european leaders on the defensive. it's very interesting, angela merkel who i reckon will be elected for a fourth term as is almost, she symbolically seen as the last bastion of western liberalism. position, the eu's when talks get underway, they will be very, very tough. and they will be monitoring what happens when theresa may comes and visits the u.s. and meets with president trump. how important is it for theresa may to secure a free trade with the u.s. before focusing on the eu? course the u.s. is an

important trade partner for the u.k., but i would argue that the u.k. priorities are primarily securing its future relationship with the eu. 44% of u.k. exports go to the eu, and it is also privy to trade agreements with other -- over 60 other countries. that accounts for 60% of its trade. that is the most important market. the most important thing for the u.k. is what is the relationship going to be with its closest partners rather than its relations with the u.s.? the u.k., while many people welcome donald trump's comments that there can be some kind of bilateral trade deal, others are wary as to whether or not you can trust president trump's assertions that this can indeed be done and whether it would be a win-win deal for the u.k. or a win-lose deal with the u.s. brexit: the rhetoric on

in the u.k. is very domestically focused. what is the unity among the different european states? you mentioned angela merkel is the last standing liberal leader. >> traditionally, the eu has many desires and differences. when it comes to the issue eu 27 willhink the speak with a very united voice. anything that might harm been taken -- integrity of the single market are the union, given the populist parties are not in power, is going to be seen as a threat. they will be very united. thus far the debate has been about what the u.k. can demand and opt for in the negotiations. once the talks actually get underway, the eu will make some tough asks of the u.k.. joe: in theresa may's recent

speech, she said i know we cannot be part of a single market but don't take a punitive stance of to us on the debate because your companies will have a lot to lose without free trade to the u.k. issue right that the rest of the -- rest of your cannot afford to be hard on the u.k., or is she overplaying her hand in terms of how much leverage she has? quick she has to go in heart as prime minister, knowing she is walking away from the single market. it's a blow to the eu losing one of the biggest member states and one the biggest economies. the 27 still have more clout and ultimately they get to decide what kind of access u.k. gets to the single market. once article 50 is triggered, that is it. the u.k. doesn't have a say

anymore. they can negotiate, but the final bill is what thethe singlt to the u.k., and the u.k. has to take it or leave it. it is hugely important to the u.k. and of course it will be the weaker negotiating partner. we haven't seen much thinking as to what the u.k. can offer the eu 27 to make the deal a little bit sweeter yet. joe: nina schick, thank you very much. , willt: the netherlands break down the upcoming dutch elections. this is bloomberg. ♪

joe: "what'd you miss?"

a populist surge is sweeping through the u.s. and it looks like the next domino to fall could be the netherlands. i spoke to bloomberg's government reporter earlier today to get his thoughts on the matter. like thenow it looks which isarty anti-islam in his pro getting out of the european union is going to top the polls but is unlikely to build a form of. it's only going to get about order of the seats in parliament at the most. is thatthe expectation even if the party comes in as the majority, there is no way it could on the coalition. so who is likely -- what is the likely coalition going to look like? >> at the moment, the liberals are running in second place.

he may well be in a position to continuing government buddies four or five other parties to be able to put together a coalition with enough seats in the party. it's a very fragmented political situation. , theif that's the case next coalition needs four or five parties, how much of a collapse of that represent from the existing coalition in terms of needing to shore up support? >> at the moment, it's the liberals and labour party. have just over half the seats in parliament. so it is a two-party coalition at the moment. support for the mainstream parties in the netherlands really has collapsed. it sort of echoes the situation elsewhere in western europe where the traditional parties don't get as much support and insurgent parties have come through. it's particularly marked in the netherlands because it's such a

broad spectrum of parties available for the voters to that. freedomng back to the party, obviously that is the big story, the fact that there likely to come in first in the number of seats. they are referred to his right wing. do they also draw from formerly left-wing voters, people concerned about traditional, old-style labor concerns like labor and general changes in the economy? those concerns are marked in the netherlands. there are more left-wing parties in the netherlands like the green party and the socialist party that has been drawing extra support as well. there are other insurgent parties as well, like a party for older voters that has drawn increased support. there inentation is other areas, it's not just the right wing that's drawing extra

votes. you mention the freedom party is currently on pace to get about a quarter of the vote. what is the high end of the range or what is the result were people say we really underestimated this trend once again? >> there are 150 seats in the dutch parliament and if they were getting more than 40, that would be quite worrying because it would restrict the ability of ae other parties to form functioning coalition after march 15. , support for the freedom party seems to be just trailing all slightly in the last couple of weeks. so at the moment were not expecting a really big further but anything can happen. as you know, polls can be wrong. joe: has anything that's

happened in other countries, whether the election of donald trump or the grexit vote had an impact on how voters see their own situation in the netherlands? vote in the united states certainly saw increased support for the freedom party. that may be tailing off at the moment, but they have lots of similarities. they've also been fairly short on detail of what their party program would look like if they get into power. it just issued a single sheet of paper and that's as far as it goes on policy. that was bloomberg's 80 buckle in london. with pioneersoke diversity including

sheryl sandberg and tina brown. this is bloomberg. ♪

scarlet: "what'd you miss?" almost 80% of delegates at the world economic form arm in. -- at the economic forum are men. caught up with sheryl sandberg, coo of facebook, to talk about the role that male colleagues play in the process. use the full talents of the population rather than half, you will outperform your peers. that is true whether you are an entry-level employee or the chief marketing officer or the ceo. i think if we can convince

companies to market to women against stereotypes because it will sell their products, if we can convince men to do their share of home and to fight gender bias in the workplace because they will be happier and more successful on all fronts, that is where the win is. girls want to build something, they want to solve a problem. when you connect to things that girls are interested in, whether climate change or finding a cure to cancer or saving a pet that is lost. when you connect with those things they care about, they get excited about technology. we need to make it relevant to them. >> the millennial women were rather uninterested, but they're coming together with the older actuallyling them to be careful, don't just take it for granted. rights can bet

dialed back and they have to be fought for every day, that has been a huge wake-up call. scarlet: that's just a sampling of some of the women we talked to at the world economic forum in davos. we also tune into what the men had to say. we talked about how one company is leveling the playing field when it comes to women. disruption has not been distributed equally. this is what is causing populism and the rise of nationalism. that is a real issue and i do think that responsible can be an echoos chamber. it can be we know what is right and everything is fine and we got this. obviously we don't got this, because there are a lot of angry

people around the world. national elections matter, democracy matters. there needs to be a course correction. we were early in silicon valley about publishing our data on women in our leadership team. that is awesome, and it wasn't pretty when we first published it three years ago. leadership team, we were south of 20% on the senior leadership team. so you have a moment where you say, are actually going to go out there with this, because we are going to get criticized. once it is out there and people feel uncomfortable, we've gone up and up and we are close. we have made massive progress. .e have a lot more to do there are ethnic minorities and others who still have terrible

representation in our companies and in her leadership team. ebay will be reporting fourth-quarter results after the bell tomorrow and we will bring you those numbers and the latest. joe: it's time for the bloomberg business flash. fannie mae has agreed to back a $1 billion mortgage loan to blackstone group invitation homes. this is first time the taxpayer supported housing giant has supported a company with a focus on single-family home rentals in the u.s.. the deal is designed to cut borrowing costs as it plans to go public. the fixed rate loan made by wells fargo is expected to be packaged in bonds. deal to buy right age is still ago but they cannot say that the companies will extend the deal three days from the agreed deadline. the merger would create the

largest drugstore chain in the u.s. by store count on friday. but the deal has not received antitrust approval from the ftc. currency trading fell across mabel glow -- major global centers including london, new york, and tokyo, according to surveys from the world central bank. k, it was down 2% from april. trade in north america fell to about $880 billion. under mounting pressure to split up, bob edmunds has agreed to sell his restaurant business to for thee equity firm assumption of network capital liability. the stock is soaring in late trading on the news. that is your bloomberg business flash. scarlet: coming up, what you

need to know to gear up for tomorrow's trading day. this is bloomberg. ♪

scarlet: "what'd you miss?" s&p 500 and the nasdaq closing at record highs. datai will look at u.s.

and fha home prices. earnings spread continues. it's just getting started. joe: lots of earnings coming out. scarlet: coming up, republican senator might lead will join bloomberg technology at the top of the hour in a couple of minutes. that joins it for -- that does it for "what'd you miss?" this is bloomberg. ♪

anchor: you are watching bloomberg technology. senate committees have approved for more cabinets of the trump administration. asy include ben carson

housing and urban development, elaine chao, wilbur ross, and south carolina governor nikki haley as ambassador to the united nations. the senate will vote to confirm them. president trump signed presence of memoranda today that continues construction of the decode access pipeline and keystone pipeline. he also had a breakfast the ceos and top executives of the big three u.s. automakers. general motors, ford, fiat chrysler. he promised to cut regulations. fbi director will keep his job. he says president trump asked him to stay on, and he agreed. mr. trump criticized the fbi and justice department for not bringing criminal charges against hillary clinton for her use of a personal email server. michigan officials say flints water system no longer has levels of lead exceeding the federal limit. the 100,00