beginning starting the wall -- speaking to abc news in his first interview since the inauguration, mr. trump says he expects a full reimbursement from mexico. >> ultimately it will come out of what is happening with mexico. we are to start those negotiations soon. we will be reimbursed by mexico. 100%. -- r. trump white house chief strategist steve bannon was registered to vote in both new york and florida for several months. he registered to vote in new york on october 14, 2016 and cast tenacity ballot there but he was also registered in sarasota, florida. will voter his registration comes as president trump calls for a major

investigation about voter fraud. ofy tyler moore, the star two beloved sitcoms has died. she was 80 years old. she gained fame in the 1960's on the big bang -- the dick van dyke show. seven emmys and was nominated for an oscar for "ordinariry people." former president george h dubya bush could be home this weekend. hecontinues to improve as recovers from the ammonia. his lungs are clearing up and he is working with a physical therapist to build strength. global news 24 hours a day powered by more than 2600 journalists and analysts in more

than 120 countries. this is bloomberg. ♪ >> will have 30 minutes from the close of trading here in the u.s. joe: the dow jones -- scarlet: the dow jones hit 20,000. joe: but the question is "what'd you miss?" scarlet: demo trump acting on the most fundamental and controversial elements of his presidential campaign, building a wall on the border of mexico and tightening immigration. telecom giant at&t said to report earnings after the bell. it of its planned merger with time warner. investing hedge fund manager famously bet against --

♪ let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. abigail: we have quite a rally on our hands. the dow, s&p 500 and nasdaq are all sharply higher for the second day in a row. the best to rally since the beginning of december. but the big story is the dow is above 20,000, hitting that psychologically important mark. all three averages are at new record highs. the dow has still not made a 1% move. this is a little less than a one-year chart. we see the dow has now been between the markers for 32 days. 32 days without a 1% move. the last few times this happened

intended to produce fairly big moves. perhaps that is on the way. the s&p 500 carving out a record high. 1%is right now up about since president trump took office on friday. this is fitting to what has happened over the last 10 presidencies in the first 100 days. the s&p 500 has gained seven out of 10 times. right now the s&p 500 is going along with that trend. as for what is driving it today, all of the major averages, the financials are the top trump trade sector come up nicely since the election. up nicely today. the bank index up, wells fargo outperforming in a big way, jpmorgan and morgan stanley up nicely. this as the 10 year yield is trading higher. really moving up a bit in terms of basis points, up five basis

points. that is shown in red because it toes a safe haven bonds are selling off. interestingly we have the bloomberg dollar index down. that is one sign perhaps uncertainty of what is happening here in the u.s. so certainly something to keep an eye on. joe: "what'd you miss?" the rising treasury yields in the past may have reflected the long return of inflation. it barely registers over the long-term. this is a long-term chart of 10 year yield. going down since the early 1980's. our next guest says that reports of the treasury bull market's demise are exaggerated in the long-term deflationary pressure remains. he accurately called the subprime mortgage crisis in

2008. sorry about that. tom: do - -- guest: don't worry. fundamentald the conditions that have caused this, they are all still in place. guest: we do have an economy at a pointd trump -- where we should see inflation picking up. we have inflation forming. cyclically information -- inflation is on the rise. not bowls in are barn. a big move in the election. it is very rare. i want to distinguish between what is cyclical. 2005, 1990's. it has not broken the long-term downtrend.

what is the factor driving long-term downtrend? that has not changed. joe: what are those factors? guest: one is the financial aspect and what is the physical aspects. the physical aspect is there is a global overcapacity. the u.s., europe or emerging markets. cyclical peak seven coming down. we have a lot of slack capacity. you can see the same thing in office space, which is a broader reflection of the economy. if you look at europe you see the same thing. emerging markets now compared to 30 or 40 years ago, you add in all of that capacity, most notably in china, you have a situation where the global economy is still suffering from glut. persistent glut. scarlet: the bank of england itself was saying that long-term

deflationary pressures -- we may have changed here. they compare the current bond market route, which has subsided a bit. to happened in 1967. guest: that is completely misguided. i was looking at the data, our unemployment rate was 3.6%. you could say 4.6 percent looks close to their completely different. -- but they are completely different. the second thing was overcapacity. i think because of the vietnam war, it was close to 90%. in germany, the unemployment rate was below 1%. ok? they were importing workers. this is true in europe as well. japan, the same situation. unemployment rate was very low. just to be clear we are talking about the late 1960's

here. we go back to the charge in the terminal to set the context, this is essentially at the beginning. we want to establish what we are talking about is the incredible lack of capacity, particularly on the labor market in the run-up to the bond market we saw. guest: there were also other factors like stronger labor unions, more pricing power. it was a very different environment. joe: in the beginning he said there were two factors. labor in offices and factories. what is the financial component >> -- component? guest: you can see both are elevated. the low interest rates enable you to maintain the high debt and also from an evaluation perspective, it justifies the in violation. or realmodel for stocks

estate and housing. the flipside is you cannot have interest rates going up if you want to maintain balance sheets. that is why there has been a feeling on interest rates all these years. scarlet: you had mentioned earlier that you are positioned for this cyclical turn in inflation and bond markets selling off for now. what about over the longer-term? has been we are not great traders. we want to maintain a long bond portfolio. big balance sheets always great ape or jealousy. -- bigt to be positioned balance sheets always are fragile. that is toy to do have a full bond portfolio. according to your cyclical view, more up and down. but right now we are unusually

likely cyclically because we believe it is fundamentally different. , 2.5 2%.ear yields how low could it go and what would make you change your mind and think the bond bull market has come to an end? guest: the first point is i think our long-standing view is the next recession will bring it down half a percent. i do not think we change any of that. in terms of what would make me change my view, it would take a massive stimulus combined with the fed allowing inflation to rise and stay there and not try to stop it. that is what it would take. i do not think it is going to happen. joe: when we get to half a percent on the 10 year yield it will be huge and we will bring you back to declare victory. thector of research at

drone levy forecasting center, appreciate you coming on. scarlet: coming up, kyle bass says resident trump is more gasoline on an already smoldering china. this is bloomberg. ♪

♪ the dow above 20,000 may be a result of investors hopes of a pro-business trump administration. but there are fears brewing about trump's protectionist rhetoric. earlier today we sat down with an exclusive interview with kyle bass. uconn's have to study the backgrounds of everyone that is advising trump on china.

read his books and the blog. x's comments one his confirmation hearing. they are all saying that china has gotten the better of us. i tend to agree. but what is important about that is developing the lens that the white house will be looking at china through it's really important as an investor. my view is that somewhere between free-trade and 45% terrace is where we are going to end up. is where we are going to end up here -- end up. and with that are profound consequences. >> let's stay the night imposes some kind of a tariff on chinese imports.

how does she respond? >> they have a plan to respond. the first plan is economic. question is, does all this economic wrangling start a fire that ends up moving into a kinetic response in the south china sea hope does not happen. the big question is, where is this all going as far as trade? at armedok back conflicts, i think they are all rooted in some sort of economic -- whether it is a grab or malaise. i think what we're headed towards is -- here is the issue, china's banking system has been recklessly else. it is now the driving economic power in the world, i think that is somewhat of a fallacy. they built their credit system, they grown 1000% gdp in five years. they recklessly build a system

that will need to restructure. that just over happens to be metastasizing as trump gets elected. it is a multi variable equation. what happens to china is going to happen on its own on top of the fact that trump will get better deals for the united states. those things will cause a profound change in china. this is all happening as a confluence of events that were completely unplanned but they all happen to be happening at the same time. >> it sounds to me like you have more conviction. >> this is a fire that is smoldering and trump is just more gasoline. >> what about the counter-arguments that you have heard over and over again. but here is 1 -- things appear to be improving for the banking system.

deflation is a little less of a threat, corporate profits are improving in china and deposits keep growing. >> we all believe in the omnipotence of the chinese communist party. none of these problems will happen. i.e. economic gravity will never take over. deposit growth is interesting. the last 18 months, credit in china has grown about $6.5 trillion. deposits have grown three. credit is growing exponentially. i.e. they are basically having to fund enormous moves in credit growth just to running to stand still. that is where the banking system is today. think about the emergency injections they have had in the last two weeks. they have clamped down on capital outflows dramatically. china was to be a global reserve currency and many people are recounted as one. how many global reserve currencies have you ever seen

had to raise overnight rates to 120% annualized to stop outflows? there is a dissonance in everyone's believe that china is the power they say they are. >> let's talk about how you are expressing your view. people think that you're short on the chinese yuan. >> i'm not going to talk about specific positioning but i will answer your questioning in another way. i think the ultimate murder of my argument versus anyone else's argument is the currency. if i'm right about the banking system they're going to have to recap the banking system. if they have to recap the banking system the currency will be worth a lot less. >> the reason i ask is not just to understand how you express the view but also to understand whether there are collateral trades to be made. like the hong kong dollar paid to the u.s. dollar. you express your viewed that way as well? -- i think it is 190

countries. let's say it is 200 countries in the world. top tradings partner is china. if you look at those, whether they have peg relationships, floating or managed relationships, those three constituencies are worth investigating. when you look at who china's biggest trading partners are and will be naturally impose upon their trading partners, then you high-grade those. the answer is yes. there is primary damages, there are secondary and tertiary and those are something we have thought many of years about. the asia-pacific region clearly will have a race to the bottom because it is the only way this can happen. that has profound implications for equity markets. >> is it safe to say that you are short north currencies? -- short those currencies?

>> it is safe to say that the asian theater is where we have focused. we have done a lot of analysis. joe: that was part of our exclusive interview with kyle bass. scarlet: it is time for the bloomberg business flash. shares of construction and building equipment companies jumped after president trump bill down on its plan to build a wall along the mexican order. vulcan materials was up while cement makers eagle materials also extended gains. german-based cement search the most in two months. harvard university's endowment once outside help running its endowment. the world's wealthiest school plans to outsource management and lay off roughly half the staff. the journal says the endowment will shut down its internal hedge funds and let traders go by the middle of the year with

other layoffs coming by the end of the year. peaked and will probably decline this year under president trump. weaknessct the current -- the index has lost almost 2% this year after closing through weeks ago at the highest since at least 2005. cheers of boeing surged to an all-time high today as the 787 green light or exert -- came out from a loss. adjusted eps was two dollars and $.47 per share. $.15 -- 50% higher than the estimate. estimate.her than the that is your business flash update. will the president keep his campaign promise to support ethanol? we will look at biofuel next.

this is bloomberg. ♪

♪ scarlet: "what'd you miss?" everyone is looking for a regime change in oil. he went to europe and spoke with client and he said nobody believes the wti range is going to change. week's announcement of movement on the keystone and dakota pipelines is positive but a $60 as to break out barrel. that is easier said than done. look at this two decade long range. it did not get going until about 2005. joe: we could be around here forever. scarlet: we always say that. it is around $50 a barrel. joe: let's talk about energy some more. let's talk about one chart that

crystallize is how this new administration might be changing energy policy. this is a chart of renewable identification numbers. biofuelsompany makes they get a credit for this and they can sell that credit to other companies that need credit for legal reasons. there are willf changes companies will not need to buy those credits and the price of rins has collapsed. they were around one dollar per credit before the election. we have collapsed to $.55 per credit now. carl icahn is a critic of the system. he has been advising donald trump. a fascinating market we did not talk about a lot. the movement of which tells you something about how traders are anticipating policy changes. scarlet: i think we should get carl icahn on to talk about this. let'sget you too much --

get you the market close numbers. look at that, above 20,000. i think we're going to hold. it is a record day for all three indexes. this is bloomberg. ♪

♪ scarlet: we are moments away

from the closing bell. a record day for all the major indexes. the dow jones climbing above 20,000 for the first time ever and staying above it. joe: welcome to our viewers who are tuning in live on twitter. want to welcome you to our closing bell coverage every weekday from 4:00 to 5:00 p.m. eastern. scarlet: we begin with our market minutes. a record day for the dow, s&p and nasdaq. we got above 20,000. joe: we finally did it. scarlet: it happened right at the open, if seconds above the open. and it held. 155 point advance for the dow. what is interesting here is in the lead up to the dow 20,000, at the end of last year we had financials leading the gains. , the best in 2017

performers were boeing, visa, ibm, these were not the names that led the way post-election. of the set was the worst performer from the election until december 31. some rotation going on. let's look at the sector gainers. .asily leading advancers financials are up. industrials of 1.1%. technology in focus because we have a lot of key earnings. google, microsoft, intel and next week's apple. joe: let's take a look at government bonds. higher rates all across the board. solidly higher 10 year yield. 2.52. it has been going back and forth. solidr it was down, now upticks. people buying equities and selling treasuries. german yield continues to press higher.

huge gap between germany and the u.s. but significantly higher than it has been. scarlet: take a look at the mexican peso. this was a big mover today. the mexican peso catching a bit. donald trump signed an executive order to start building the wall along the mexican border. he conceded for now that we would be paying for the construction and perhaps that might be one reason why the mexican peso is getting some strength. mexico will not be paying for it anytime soon. over the three-month period you can see the peso saw a floor after tumbling following the election. i wanted to mention the pound, it has made its way over of -- $1.26. traders say there is less uncertainty regarding brexit after theresa may agreed to lawmaker demands to publish brexit plans which follows the u.k. court ruling that requires

parliamentary vote to leave the eu. muchon commodities, not except the top commodity up over nearly 3.3%. rubber based on torrential rain in thailand. pretty much everything quiet. goal down less than 1%. crude oil not going anywhere. scarlet: those are today's market minutes. we have some breaking news. at&t reporting results come earnings per share of $.66. that matches the consensus. revenue coming in lighter than what has been anticipated. $41.8 billion for the fourth quarter. analysts were looking for 42 $.1 billion. -- $42.1 billion. president trump is not a fan of that deal. joe: we have data out from qualcomm.

coming in with adjusted revenue of 5'9" ongoing dollars. just shy of the 6.9 on building -- we are seeing the stock move down 2%. range, it could miss or beat either way. eps beating by one cent. beat on eps, a miss on revenue. unclear guidance and the stock down 2%. scarlet: guidance from the company 2017 adjusted earnings would be in the mid to single digits. -- mid single digits. growth will be in the low single digits if you back out of the deal. is at $22 million range. in cameron price rice for bloomberg markets live blog. -- he is the

perfect person for us to talk about the dow 20,000. in a lot of excitement but what does it really mean for investors? guest: i will make the obligatory macro guy comment. scarlet: it is priced based. guest: the biggest -- the bigger picture is you have a breakout over the last five to six weeks not only in the dow and s&p but international as well. from a technical perspective that is pretty bullish. pattern consolidation followed by a breakout. u.s. equities, what we have driving it? a solid earnings season and you have got -- the economic data is looking good. multitier highs in the u.s. and other parts of the world.

there is always a dark side of the moon. there are some risks. is economic surprise inverting. forecast catch up to pass data surprises. there is more room for disappointment in the future. q1 for the last several years has been very poor for the united states. you take the under on economic growth numbers for this quarter. joe: here is a question that people always ask me. why doesn't the market worry about trump? why don't they worry about the fact that he seems to be inching towards further protectionist measures? he could either slam individual companies or set off some global political issue in a second. i don't know the answer. people must ask you that. guest: i think people are worried about trump but at some

point opportunity cost trumps actual cost. if you see the market going up you are dragged income especially when there is not a technical breakup. you mentioned the peso earlier. the peso by standard measures got way too weak because of the trump trade and now we're seeing the payback from that. he starts saying we are to look at nafta and build the wall, and the peso has gone nowhere but up. scarlet: should there be less of a premium? guest: i personally would concur with that. let's take a step back. trump wants to change the behavior of corporations. definition that will be sub-optimal for corporate earners because if it was optimal they would have already been doing it. you're going to have to think it will impact corporate earnings. then you add in the idiosyncratic risk of 3:00 a.m.

tweets, it is a reasonable argument. the trumpe talk about rally, this big move since the election. but what we have really had as you explain is we had a rally, then we had a sideways consolidation, then we had a further rally. as you pointed out earlier this week there are two components to the rally. yu -- youon as yo call it. talk through this shift. what are we looking at and how are we seeing a shift between your and 2016 and the start of 2017? from electiones night to the end of 2016. you can see the aussie dollar went down, u.s. dollar went up here that is trumpflation. base metals went up. those are treasury future

prices. price down, yield up, a substantial move. all consistent with domestic u.s. trumpflation. as of yesterday the actual numbers are slightly different. e has appreciated as the dollar has gone down. base metals have been absolutely ripping this year. yes, there are some idiosyncrasies. an impending strike in one of the minds but iron ore has been up, nickel is up. that is a classic china story. until today. u.s. equities have been less impressive. scarlet: speaking of classic china trade, he was a vocal proponent of free trade. it is ironic he was more so than the u.s.

candy china replace the u.s. as the engine of global growth? -- will it want to? guest: it is not quite the right way to frame it. the engine is global consumer demand because that is where the u.s. has really been number one. china has obviously been very important. but the simple answer is no. surplus a current country which means essentially they sell more than they buy from the rest of the world. i was looking at this the other day, chinese retail sales are larger in dollar serves -- terms than u.s. sales are now. u.s. imports are substantially larger than chinese imports which tells you that china -- consumption is growing but it is domestic. they are buying their own stuff the stuff made in china is cheaper for them. scarlet: interesting. i like that.

cameron, thank you so much. joe: coming up, global economic economist is here. we asked him what a trump border tax could mean for the oil industry in 2017. this is bloomberg. ♪

♪ joe: "what'd you miss?" president trump is talking tough when it comes to his plan to penalize u.s. companies that outsource manufacturing. he has told major ceos to expect a 35% tax if the import products to the u.s. what impactt -- but would have on the oil and energy industries? joining me is jan stuart.

there's so much focus on manufacturing, car companies, but traders thinking about the the beauty i spread. all of this could -- the wti spread. how do you see his policies affecting the industry? in the first instance just at the border in the first minute of 2018 went something like this will go into effect, you have to believe it goes up and imports for crude, the price goes up. the american crude price goes up. that should benefit american producers just like mr. trump says. america is great. producers thatze have a market only in the united states or simply export to the states. all else equal. the second derivative i think would be most likely domestic prices go up.

gasoline. why would you want to do this? what is the first thing you're going to be able to show to all the swing state voters of yours? here is a bunch of pain, let's wait for the game. -- the gain. the political risk all around this -- even though mr. trump said this is going to be great, what are the ramifications, how does a suddenly disjointed, very intricate trading regime been fined a new equilibrium over what kind of time? who are the winners and losers? even that is difficult to figure out. what seems reasonable to conjecture if you will at this american producers should be among the first -- all else equal, benefit from something like this. all others who export to america not so great. scarlet: good you make the

argument that on a principle basis, in the first instance that would happen but somehow it would find equilibrium and then you just add as needed? jan: on what timeframe? we live on wall street by quarterly. how many quarters does a carpark carrter to america -- exporter to america -- or import from somewhere else? just about aa is net benefit to america. the trade deficit with canada i'm told on balance and it's entirety is -3%. with china it is much wider. canada's relationship with united states is huge and

extremely intricate. the entire car manufacturing supply chain is built on two sides of the border. we're going to upset all that, for what? a 3% gain? really? what would such a tax mean for refiners? entities that import oil from overseas but then exported again. jan: you are going to hate my answer. it depends. [laughter] joe: that's a good answer. jan: first blush, maybe some he says that would be fine. exports,s more than it probably not so great. on second blush maybe it is the case that everybody works with the same on the one commodity price. margin isns to the going to be infinitely more important than what happens to costs and isolation. if you as a refiner can hang onto your margin because you can

sell your gasoline for more, then what is the impact? or if you do not only get a better domestic margin, but you can also export? different calculation all over again. the short answer i'm afraid is it depends. also on what timeframe. theory, which is where this all comes from, this is defendable. apparently it can raise $1 trillion worth of revenue, which is why it is the keystone of the republican plan, not really so much of the white house. and we need to frame the risks around it, the scenarios around this. they are complex. scarlet: let me ask perhaps a dumb question. president trump has promised to make the u.s. energy independent. is that good news for us as americans in terms of gas prices? --: again, this is a promise

i am betraying something about myself. thatarter begin making kind of promise. america east to be the biggest exporter of oil until the early 1960's. this is something that can happen. is it good? it depends on who you ask. is it good for people in texas? of course. big picture, a truly depends. joe: we have to leave it at that. jan, thank you for joining us. scarlet: mattel has just released fourth-quarter numbers. adjusted earnings per share is $.52, almost $.20 lower than the estimate. i'm just making sure we are comparing like with like because it is such a big mess. right now the market is interpreting it as comparing like with like in we see the stock down by 10%. revenue trailing the consensus evident -- estimate.

net sales missing estimates and earnings-per-share's missing estimates by a large margin. mattel shares down 10%. coming up, with the dow hitting 20,000 will more companies go public this year? we speak with tom farley. this is bloomberg. ♪

♪ scarlet: "what'd you miss?" now that the dow has moved beyond 20,000, where does the market go from here? join is not from the new york stock exchange is time farley, president of the stock exchange. let me start with the dow at 20,000 because we cannot get away from that. is thisflection point an indicator of positive underlying fundamentals for a healthy market? tom: that is the hope.

i remember when i woke up in the middle of the night november 9 and i saw the dow was down 600 points, since that time we have come roaring back 15%. it is basically hope. the hope is we are going to see a reformed corporate income tax regime. where going to see a reformed regulatory regime that makes it more advantageous to be a business in the united states and maybe infrastructure spending. there is a lot of optimism. it is been a raucous day here on the floor as we hit that milestone. joe: you mentioned optimism. i remember when the dow hit 10,000 and it was practically a national holiday in america. it felt like they shutdown everything and people went into the streets and cheered. when you go around on the weekend in ec friends -- and you see friends, two people bring up

doubt 20,000 to you? -- do people bring up doubt 20,000 to you -- dow 20,000 to you? tom: it is not in the zeitgeist to the same degree. at the end of the day it is only a number. but it is emblematic of a healthy, growing economy that will benefit all of society. let's hope. let's see if this trump administration acts on these things they're going to do, which have the potential to be good for business. scarlet: we talk about emblematic, hope, optimized -- optimism. if it sustains momentum, what does that tell you about potential listings of companies? how does this change or forecast of how many companies you will see listed on the new york stock exchange? tom: let me take you back a year ago. the first quarter 2016 we had zero ipos. we did not raise any money for

corporate america. companies cannot take money that they had not raised in their business. look at where we are now. we are expecting 10 ipos in the next three weeks including four on friday. three operating companies and a close and fun. those 10 ipo's are really big. most are raising in the neighborhood of $500 million, 600 million. we have one we expect to raise $1.7 billion next week. it is good. that is great for the economy. that is money the companies can put back in shareholders pockets. it is looking different than it was a year ago. scarlet: that is in the short-term and is a lot of money away about six months out, 12 months out? does it encourage companies that are still mulling over whether to go public to save this is it? -- say this is it? tom: i am very good at

predicting this stuff. right now as it prices are at an all-time high. interest rates are low and stable. our pipeline is significant. literally dozens of companies are ready to ipo. if we stay in that environment, if these 10 ipo's go well, then i would expect to enter your question that the next months looks like a great year for capital formation. joe: news out of the bloomberg today that on one of your tiny subsidiary markets, you are going to be adding a speed bump similar to the competitor idx. what does this say about the demand for market structure, things that work against high-speed trading? what is the demand for that? tom: in particular the institutional trading customers, we offer a choice of executing their trade. we actually have three

exchanges. the nyc exchange, we recently announced we're going to increase the a number of securities to include all securities in this country. n.y.c. arcade exchange which lists 92% of etf's. mtk.-- and the nyc we are renaming it n.y.c. american. between those three venues we are giving investors a choice of most of the models that are out there in the world. scarlet: tom farley, thank you for joining us. trump todayresident acted on one of the most fundamental elements of his presidential campaign, pulling a wall on the border of mexico. this is bloomberg. ♪

scarlet: this is bloomberg, and we want to give you a recap of today's market action. it was a record day for all three major indexes. the dow finally breached 20,000, closing at 20,068 and got about 20,000 within the first minute of trade. the s&p 500 adding .8%. financial are the big leaders there. nasdaq, the best performer, up 1%. a lot of big tech earnings in the next two days. after the close, we saw at&t report earnings of $.66, matching the consensus estimate. revenue was slightly below what had been anticipated.

the stock is up .6%. the growth projection is in line with analysts' estimates. joe: we also got earnings from qualcomm, following a little bit after hours. sales came in light of estimates , around $5.99 billion, analysts looking for $6.11 billion. eps be just by a penny. wire,t: just crossing the ebay coming out with results that beat estimates if you are looking at adjusted earnings for share. $.54. analysts were looking at $.53. revenue coming in bang in line with what they anticipated, $2.4 billion trade the stock is down by .75%. forecastint of the trails b consensus estimate, so that might be why the stock is under pressure. to 461 is adjusting eps to $.48.

revenue bang in line at $2.4 billion, exactly where estimates were. the outlook is a little shy of expectations. stock is going back and forth. not huge movement after hours. scarlet: we are seeing a huge move in mattel. shares down by greater than 10%, earnings per share $.52. analysts were looking for $.71, a huge mess. -- huge miss. analysts were looking for $1.96 billion in sales but they missed. holiday sales were not up to par. joe: what did you miss? onsident donald trump acted two of the most fundamental and controversial elements of his campaign -- building a wall on the border with mexico and tightening restrictions on who can enter the u.s. get. trump: we are going to the bad ones out, the criminals

and drug deals and gang members and cartel leaders. the day is over when they can stay in our country and recap it -- and wreak havoc. we are going to get them out fast and john kelly is going to lead the way. scarlet: joining us is bloomberg politics reporter kevin cirilli. also government reporter eric martin. an executiveas order unlike the action taken yesterday, which was a memorandum in which the president ordered the construction of the mexican wall. what needs to be done by congress to move this forward? kevin: this was campaign rhetoric repackaged in the executive branch, and now the ball moves to congress, where top republican leadership including paul ryan are already meeting with advisers on how to move the president's agenda into a budget. of course, the bottom line is

there is no agreement in terms of what exactly this bolstering of border security will look like, how big exactly the wall will be and how high, or whether it will take various iterations with fencing and drone items. the bottom line is this -- there are several different ways according to officials that this could be crafted, including as part of an economic stimulus plan that the president has been pushing, particularly on infrastructure. a lot underway and a lot that will continue. legislative agenda still being crafted. city,ric martin in mexico today's news shows, if nothing else, that it was not just campaign rhetoric. trump believes for now following through with what he talked about. how is the news playing in mexico? eric: this is an announcement

that folks in mexico were expecting. donald trump talked about this early and often on the campaign trail. the mexican officials are moving forward in terms of trying to preserve the nafta trade deal and benefits it has for mexican exporters, u.s. manufacturers making foreign investment in mexico, and also as kevin mentioned, some of this may take place on the hill in terms of relying on allies of mexico in congress from states like california and texas to make the case for a border in which goods and trade can flow. mexico understands and the foreign minister understands the u.s.'s right as a foreign nation -- sovereign nation to protect its borders, that he was adamant mexico will not pay for the wall and are looking to continue their trade relationship with the u.s. scarlet: during his remarks, president trump also said he believed the wall will save

lives in both countries and that u.s.-mexico relations can ,mprove even with this plan whether the law is metaphorical or physical. two officials -- whether the wall is metaphorical or physical. do officials in mexico share this view? talkingey have been about this as a comprehensive relationship between u.s. and mexico involving trade, immigration, security, cultural exchange. there is a concern for the mexican side about the amount of weapons bought in the u.s. that have been flying the other way across the border in recent years and helping to arm criminal groups in the nation's drug war. there is a feeling in mexico that while the wall is important and mexico will never pay for it that the relationship goes far beyond simply the border and that particular issue. joe: kevin, at this point, what is the administration's agenda for getting mexico to pay for

the wall? kevin: i can remember when i covered then-candidate trump's visit to mexico city to meet with government officials. that was a key question then and still a key question now. here is what i can tell you -- behind the scenes, what they are talking about our remittances, talking about using leverages with trade agreements. ofo trying to find key areas bi-nation agreement, particularly on the issue of law enforcement. we heard president trump earlier today adopt a much more compassionate tone in trying to pitch this plan, saying the two countries could work together on issues like fighting drug cartels. of course, this all comes on the heels of right before the two leaders are set to meet next week face-to-face. they're going to have a lot to talk about. scarlet: absolutely. eric, what would constitute a

success for me and tell when he meets with trump next week? but are they looking to get out of the meeting? eric: preserving nafta as a working free trade agreement. the government has set for several goals, preserving the flow of remittances, allowing for free trades of good without tariffs.wider. and one of the cards mexico holds a security cooperation. they have been collaborating very well on issues like counterterrorism and the war on drugs and crime. that is one area or mexico can say, we are working well together, we recently extradited to the u.s., so if you want to keep working well, let's keep and preserve what we have in terms of nafta and north america as a manufacturing and asked or block. joe: kevin's early in and eric martin, thank you very much for joining us. scarlet: coming up, three out of

four companies are reporting earnings. we will give your preview of facebook, amazon, and alphabet earnings. ♪

scarlet: i'm scarlet fu. "what'd you miss?" with president trump's sometimes hostile reaction with the media and industry m&a as a backdrop. comcast's already head of the curve after buying nbc universal years ago to become vertically integrated. let's look at the cable giant in today's "the numbers don't lie." comcast added more video customers than projected, even as investors worried about online competition. video system helped as it

made it easier for customers to use the service. cable tv video is their biggest revenue generator. cable, the orange slice of the pie, leads high-speed internet and nbc universal's broadcast networks, the blue slice. over the past few years, market saturation led to a slowdown in annual video revenue growth. video, the blue line, is a laggard. to 4.5% in the third quarter. thanks to president trump's election race, comcast -- msnbc network saw a huge spike in viewership through november, but that later normalized in december. the election boost caused nbc's total ratings losses to slow to 4% in 2016. now that the election is over, we will see how the trend plays out. one focus for comcast this year is the convergence of mobile and video.

this senators on a -- this centers on a quad-play package that bundles internet, wireless. mobile play for comcast is a possible purchase of t-mobile, but keep in mind, there are no shortages of competitors. potential suitors could be dish network, sprint, cbs. following comcast earnings when they are released before thursday's u.s. opening bell. joe: we also have a slew of big tech earnings coming up very soon with intel, alphabet, and microsoft weeding things off tomorrow and apple, facebook, and amazon next week. joining us to give your preview is the consumer technology reporter mark gurman. great to have you on said. let's talk about some of the big themes and ideas we are watching for with these earnings, starting for all for that. what are you going to be interested in what they say

tomorrow? mark: alphabet is primarily an act company, but they do have a lot of other things going on. , whatever itglex is ceo wants to work on, whatever he thinks is cool. 2016 is the year they started to make a profit and revenue on hardware. they had two key new products, the google pixel phone, reviewed as one of the top android phones, and the google home product which takes on the amazon echo. it will be interesting to see if they break up numbers on those, maybe we can get an idea on margins and how they are competing with apple and iphone. scarlet: is the goal for those businesses to be profitable or to be meaningful profit generators? mark: we can look at profit in two ways on the google products -- ad sales, how much money they are making, who they are allowing to tap into the products, the kind of data they are getting from the customers, but also hardware margins in the

software industry are very important. apple does not sell the most phones but they make the most money on phones. it all comes down to money, so google will want to play there eventually. joe: let's skip ahead to next week. you know more about apple than probably anyone else in the world. what do you think is going to be the question investors want to know about apple this order? mark: it comes down to this -- is apple still a growth story/ are the revenue numbers in this q1 holiday quarter going to be higher than q1 2016? apple is indicating yes and analysts are indicating yes. this is important because the first time in over a decade, apple had multiple quarters in 2016 with a lack of growth. if the growth story is stalling, that is bad news for apple and investors because that is when a company starts turning from a success story into more like every other tech company. scarlet: when i look at

analysts' recommendations for apple, we can see that mark moskowitz of berkeley has downgraded his recommendation to equal weight, the equivalent of a buy before that. it seems like there has been a couple of downgrades, more caution towards apple. what is driving that thinking? mark: we have to think about what drives the apple stock price. it is their sales, revenues, other factors. but what drives that -- the products, the innovation. do people want iphones? if we look at the past five to 10 years, what really makes the stop jump? stoc joumb? in 2012, it was the iphone 5, the first major product after tim cook taking over. the stock went up over 700 at that point, and it went down after the product cycle slowed.

we are at the point again where people are going to get really excited about the iphone eight at the end of this year. joe: we were talking about how google -- one of the tests is, can they diversify the business? people ask that about apple. it is still fundamentally an iphone company. they have introduced other products. they supposedly want more credit for their cloud. is anything happening interesting businesswise on the nine on a phone -- on the non-iphone part? mark: to ask someone running a business to put all your eggs in one basket, overture there the country, but clearly they are looking to do more. the service business is growing rapidly, a lot of money on , the apple tv, but they are also looking at other areas -- self driving software for cars, new home products, augmented reality. but we have not seen any physical evidence of this yet and i don't know. to see that this year. scarlet: in the meantime, facebook has to rely on the

daily average users to drive the metric for the company. that is what investors look at. mark: right, everyone just cares about the daily active users especially on mobile. today, they came out with a new stories feature that looks like instagram and snapchat. it will be interesting to see how they present that. are they really going after the snapchat market? joe: mark gurman of bloomberg news, thank you very much. scarlet: we are to stay on technology because facebook coo and lean and author sheryl sandberg sat down with bloomberg at davos about how companies can change the face of leadership. this is bloomberg. ♪

scarlet: on today's walk the talk, we rounded up the best and

brightest at executives at the world economic forum. we asked about where women fit into industries long dominated by men. the chief creative officer at fcb kicks it off. >> we did not create the problem, we exacerbated it. the other thing that happened is television became a mass way to advertise, and the 32nd commercial to me -- especially at that time -- it went from 90 seconds to 60 to 30 to in the 90's 15 second communications, which if you think about 15 second communication, there is really a joke. it is a set up and a dunk. i watched guys growing up in locker rooms and the way they talk -- they have been practicing that their entire lives. women, at least how i grew up, had been much more philosophical, thoughtful, empathetic. and in a 15 second commercial, seconds, there is not

a lot of room for that. >> the news cycle is moving extremely quickly. we have a very fragmented ecosystem in terms of where people are receiving their news, and it is very difficult to fact check. check, the do fact many individuals who may have seen the false piece of information, to be able to reach them and let them know it was false, you are chasing always behind. , thenk that is -- again election is going to exist even more so moving forward. spoke with also sheryl sandberg, the coo of facebook, who hosted a panel. she talked about how companies can shift unconscious biases and why men need to join the fight. >> you have to give women a safe place to raise the issues. the big stuff -- a sexual harassment -- that stuff still happens.

it does not always get reported, but there are systems in place to deal with it. if you are really sexually harassed, at least there is an hr person you can go to. that is usually important and i know we need to do better. but what happens when you get interrupted in meetings? you are going to complain about your boss, who is probably a great guy who thinks he is fabulous on women? that is a pattern. it is these paper cuts, the culture created the problem. you can file a complaint on that -- i got interrupted. even though, let's be clear, those are the biases holding us back. one of the things that happened, we launched lean in circles with my foundation. there are $31,000 on the world. it gives you a safe place to anonymously give that feedback.

rather than your perfectly nice boss who thinks he is fabulous on gender even though he is interrupting women more than men or being told he is giving credit to mentor women's ideas, which he probably does not know he is doing -- we provide training, and these circles give you an anonymous place, and the circle leaders can meet with the heads of a star -- heads of hr or the ceo and say this is happening. it is huge to acknowledge we have the problem. wehink the third thing is have to give men a reason to participate. again, i think it has to go back to what is good for them. it is the right thing to do, no doubt, we have known that for a long time and it has not happened. if you are a man, why should you be a more active husband and father? why do laundry? other than the fact that tell men all over the world, you are going to have more sex if you do. that is a good reason, but why do it? because you are going to have a

happier marriage, the divorce rate goes down, your wife's depression goes down. why do more childcare and try to get the balance more even? because your kids, regardless of income level, are going to do better in school, be healthier, happier, and better adjusted. that is a really good reason to do more housework and childcare. if you are a man in the workplace, why? because if you can use the full talents of the population rather than half, you are going to outperform your peers. that is true whether you are an entry-level employee or you are the chief marketing officer of unilever or the ceo. you are going to do better. if we can convince companies to market to women against their types because it will sell their product. if we can convince men to do their share at home and fight gender bias in the workplace because they will be happier and more successful, that is where the win is. as all of these amazing panelists have said, the data is

on our side. scarlet: that was sheryl sandberg in davos. joe: we have one breaking headline from the ap -- the president of mexico considering canceling the upcoming trip to the united states, so something to keep an id. on. -- keep an eye on. of course, today we got news about trump planning the wall. we will see if the meeting happens. coming up, what you want to know for tomorrow's trading day. this is bloomberg. ♪

joe: we want to reiterate the breaking headline before the bell, the president of mexico according to the ap considering canceling an upcoming trip to the united states. scarlet: in terms of what is happening tomorrow, president trump and theresa may attempted to's -- expected to speak at the retreat in philadelphia. joe: next hour, b

>> time alisa parenti and you are watching bloomberg technology. president trump assigned to executive orders that the homeland security's department today, one to begin construction for a wall along the u.s.-mexico

border and another to restrict aid to sanctuary states. he spoke to abc in his first interview since the inauguration. will trump: ultimately it come out of what is happening with mexico. we will be starting negotiations soon and we will be fully reimbursed by mexico. >> they will pay us back. pres. trump: 100%. alisa: they are lining up executive orders to reduce the u.s. role in the u.n. and other organizations, according to "the new york times," which says that palestine and states that support terrorism are also targeted. the ap reports the administration wants to stop accepting syrian refugees and plans to delay issuing visas to citizens of seven muslim majority countries. george h.w. bush could be home this weekend according to a statement from a spokesman, who says the president's lungs are clearing up. and aces