hiscrats question commitment to civil rights, opposition to immigration laws, -- president trump estimation's chief foreign officer. says the affordable care act is still rising and repellents are committed to rescuing people from it. lawmakers are taking action step-by-step and plan to finish their work on a new bill by the end of the year. implement a replacement for obamacare could take into 2018. in london, parliament votes down plea.al, there will be no spoke in the house of commons. of a greaterink signal of weakness than this house to send the government that to the european union and say we want to negotiate further. i think that would be seized

upon as a sign of weakness. isexplaining the government decision in legislation that would be the start of brexit. a suicide bomber struck outside the country'supreme court. 19 people were killed and 40 others were wounded. the taliban has been targeting the afghan judiciary since last may. news 24 hours a day power by more than 26 hundred journalists and analysts in more them 120 countries. this is bloomberg. ♪ >> live from bloomberg world headquarters in new york, i am scarlet fu. joe: i am joe weisenthal. scarlet: u.s. stocks climbing to

highs and then retreating from those records while treasuries advance. joe: the question is what did you miss? scarlet: in politics, details on fiscal policy remain undelivered. conn's and ministration returns to court to extend the executive order banning some travelers from the u.s. disney will report its first quarter off -- first order offerings in less than one hour. finding a replacement for ceo bob iger. in markets, eyes another company. this time it is motorola -- motorola solutions. at where theok major averages stand as we head toward the close. abigail doolittle is standing by. abigail: ever so slightly mixed trading averages. the dow and the nasdaq trading higher. following the dow and the nasdaq putting in new record highs earlier this morning.

a choppy session for all three averages ever since. it really exemplifies the dow and the nasdaq did not go negative only very briefly. the s&p 500 has been flipping between small gains and losses, telling us there is some degree of uncertainty on the part of investors. the averages are again close to even, these are big companies reporting earnings. ec buffalo wild wings moving up in a big way ahead of those reports. hepatitis c drug will be what everyone is watching. -- analystsend saying if they miss, it could be a reset considering the stock is near, looking for a low quarter , $514 million and a low quarter is really the scene.

a bloomberg intelligence analyst earlier told our team she does about disney to put up $515.3 billion in revenue, and despites revenue -- or disney talking estimates down. to leave another lobar quarter, we take a look at the tv 5830. investors are looking at $.49 per share. ubs is saying they could miss. reason according to ubs is currency or strong dollar. this is a five-year chart. blue, we have this index there there are reasons to think it may drop in the near term. it does not look like it will be

the dollar, strength at least. it looks like it has been managed very well as the dollar is climbing higher, so is it. we see a range in the last year or so, suggesting you could see a trade down closer to $40 per share. perhaps the company does again just manage that well. joe: thanks. you are is in play when looking at china, just below truth -- 3 trillion last month. in the library, currency reserves falling to the lowest level since 2011. this comes after the steepest annual decline in two decades. , george,s from london great to have you back on the

show. the reserves keep flowing out. levels fallen below $3 trillion, it makes for a nice headline. pace of make of the outflows right now? >> i do not think the number means too much. there is a little psychology attached to the $3 trillion number. as much as 20,000 or what else. we should not get too hung up about that. there are two things that stand out from today's report. the pace of outflow has or did declined significantly in january. that follows a considerable tightening of capital controls that took place during december and early january. just as the dollar was beginning to come down a little in january, the people's bank of china was starting to tighten

liquidity rates a little bit in china just before the chinese new year. the second thing that comes out of the numbers of course is the the pressure on outflows, it is still there. like $12 million. month by month, there is that pressure for capital flows. i would not be surprised if the chinese authorities had to step in and introduce even more aggressive measures. >> is tending to his -- tempting cap -- corkdrop as activity. people of china, not foreign investors. how well understood is this? >> i do not think what people really understand or what they're learning to understand, that there is a problem of capital and china which is really about chinese and chinese

individuals that want to get their money out of china, the rate is a really important rate for chinese household and foreign companies. the bank in china is targeting exchange rate but actually virtually all of the transactions that take place in china, whether banking flows or foreign investment, or portfolio, limited portfolio, denominated u.s. dollars for the most part. people start getting excited again, this will come back. joe: if the money cannot flow out and the capital controls tighten to a degree that it keeps in the pressure, we know

there is always a bubble somewhere in china, what are people doing with the money that they would have otherwise moved out of the country? where is it flowing to now? >> what we have seen up until the end of last year has been a pretty feisty pickup in property taxes. turn, the revelatory wehorities reacted to, that ,o not have these two quickly second mortgages, and try to take the sting, or the steam, out of the property market or the property price rallies. when it stops going up, as great but thaty as it was,

pressure is still there. this, thenese need bond market is moving through trials and tribulations, significant -- then you know we should expect to find all swords of ingenious ways of getting their money out of the country. i am pretty sure that is what will happen. >> chinese consumers learned from the rush of capital 2018.ws in >> a little bit different in 2015. concern.a real is anyone in control here?

2015, a big problem about the stock market if you remember in june and july. that has changed. certainly, much more communicative and a much greater feeling, are trying to control of regulate, obviously as one last year, keeping a lid capital movements. that is kind of the way it has had to they do not need to learn very much other than to know forever the revelatory authority is doing with capital movements, as long as credit keeps growing

at such an orderly -- and learned rapid place. joe: you will stick with us, will talk about the up coming election next. this is bloomberg. ♪

scarlet: france's national controlas to take back and hold abrasive style eu referendum. project core data for the presidential campaign, and he spoke to bloomberg earlier -- earlier. >> and orthodox monetary policy

company for long time, you can see the euro has been framework exaggerate -- exactly on the deutsche markets. polarized on french natural -- national interests. specially evaluated germany. >> the odds of getting past the first round fairly high. what about actually winning the vote at the end? that is the 64,000 euro question. is widely expected to top

the first round of elections which takes place for the end of april. suggestion polls then the second candidate to her will right-wing for center-right candidate, who is basking in the little bit of that scandal regarding payments but hewife and children, is a very popular candidate running second in the opinion polls. they suggest in the second round, they would basically have a very considerable victory. they read the script before. it looks to me, famous last words, that it will be -- they will be the two last candidates

fighting it out. on immigration type issues, very well-known where she stands, talking about the economic plan, we just heard one of her divisors talking about regaining control of the money the independence of the french central bank, using money to fund welfare ofustrial policy, it kind sounds like something you might hear from a more left-wing economist. to that any validity approach to rethinking monetary currencyd regaining independence for that reason? joe: -- >> the only thing you can say to the credit of the argument is that is consistent. things aspal president, would want to do, as

you said, when a campaign was launched, she wants to injured a and sheoreign workers, wants to erect trade barriers. the only way you can do that in andeu is to leave the eu basically leave the eurozone and introduce -- take control of the central bankers. that is consistent. i think it is nonsense but consistent. scarlet: we have some headlines. the court of san francisco said it will likely not enroll today on the trump travel ban. be thisng will probably week. the appeals court says it will likely not roll today on travel ban and a ruling would probably happen this week. we will keep you posted. the travel ban is not in effect.

>> lujan to a little longer. you're talking about how the policy will be consistent with the policy of leaving the eurozone. a column in bloomberg view today, he is skeptical of the idea there will be a eurozone breakup. observer willcute notice of skeptics have been predicting the surmise -- demise of the euro for nearly 20 years. betting on its breakup has been the window -- what a maker of its trade. do you see the euro hanging together? the problems do not seem to go away even if they lose as everyone expected, they continue to bubble up. credit default swaps and spreads rising in italy and portugal and spain.

they do not seem to be dissipating. do you see this around 10 or 20 years? >> i will not duck the question but i will say this. although sorts of things. of thee bit devoid politics and make this come alive particularly since 2016. we have reached the end of extrapolation. good or you think is bad about europe until now, everything is different because it is possible but then could win the presidency in france. quite possible there will definitely be italian elections either in june of this year or maybe in the fall, out of schedule, elections which would take lace anyway in 2016.

that party could ask or demand a referendum. whether theow social and economic conditions in europe welcome five to bring someone more likely to be the extreme left. the extreme right to power. if that happened in a major country like france or italy, then pretty much that would be the end of the euro, whatever the past 20 years have told us. is there a country in the eurozone that life the status and will benefit from stay exactly where it is? >> is strange. again. the only way we have to measure public opinion is to ask people. you have got the problem about sampling biases and so on.

in most countries in the , 1719 members of the eurozone, most people, particularly these countries, betterority opinion is keep it. there are obviously significant minorities in some countries. you may find a majority that said if there was a referendum, they would vote to leave. but public opinion is quick to criticize the elite and what is going on, but no one wants to jump over the cliff. those political binds, which i think he may have been referring to, those funds are quite strong. scarlet: thank you so much. espn.p next,

the sports news outlet is facing serious problems. we will look ahead at the data at of the first quarter earnings. this is bloomberg. ♪

scarlet: take a look at the crown jewel of the disney before that, 2.2 million in 2015. it has been going on for a couple of years. $180people drop their monthly bundle packages on cable and decide to go out cars, espn is most honorable. the espn subscriber base has shrunk to about 90 billion. for is a profit generator disney and the company needs to come up with some kind of replacement. a subscription only online version of espn, but when you're subscriber base is

eroding, it is -- i do not know how you make up for it. >> i am looking at something more macro. this chart is from cameron, looking at 10 year yields, which are inverted in gold. you can see they move together for a while and both bottom to december, 10 year yields top in december. much of itssed losses that we have seen since the election. yields really have not moved much. they have stalled back but are still significantly off the levels they were right before the election. interesting to see if the gap closes and which one ultimately meets the other or if the gap does not close at all. scarlet: but the gap tends to close if you go back. that is something we will keep an eye on. cameron writes for bloomberg's first word. here is where we stand as we

head toward the close. the dow is still at a record. to be closing up about 20 to 30 points. the nasdaq is higher by eight points. this is bloomberg. ♪

moments away from the closing bell.

what did you miss? stocksollars bolstered -- bolstered. investors cautious. i am scarlet fu. joe: i am joe weisenthal. to our tuning in life closing bell coverage. scarlet: we begin with the market minutes. it turned out to be a somewhat flat day. yesterday, the nasdaq hit enter day records. the s&p 500, unchanged on the day. of: the remarkable lack volatility, big moves continues. scarlet: we saw energy stocks decline. keeping ampany we are close eye on here is michael kors, off by 11% after the

fashion house cut its outlook. motors, with a flat market leaves people to wonder if they can continue the street. we will keep an eye on back. in terms of biotech, look at the index. sean spicer made a comment that the president is interested in negotiating prices. the sector remain down. let's take a look at the government bond market, starting and the u.s. 10 year two-year. not a lot of action. 2.4%.ed not a whole lot of action. and, greece.

continued in passes on the bailout. tearhave been on a real lately. here is the longer-term chart that we are talking about before the break. you see the shoot up in november. since then, we have not only .talled, we have pulled back yields are down for the year. a lot of people thought they would go higher. scarlet: stuck in a range. and currencies, yesterday was a display of strength. today is about dollar recovery. the fed president signaling, don't count out of march -- a marginal increase.

also, i want to highlight the british pound. official saysand the u.k. may need a rate increase as well. move.is the dramatic currencies from the loony to the crone are in trouble. the underlying data was not as encouraging. exports fell month over month. joe: finally, on the commodities front, scarlett talking about the commodities. you can see it there. crude continues to slide. it is in the same range it has been for a while. gold, which had been bouncing back a bit, not a ton of action today on the commodities front. scarlet: that is today's market minute.

we have some results. joe: breaking results from gilead. the pharmaceutical company reporting. will boost said it 2017.vidend by 10% in q1 revenue, 2.7 billion versus estimate of 2.8 billion. we will continue to monitor that , why markets are not thrilled. coming in ahead of expectations. scarlet: let's take a look at dolez as well.

moving a whole lot, currently down half of 1% in after-hours trade. one of today's losers is motorola. as much as 6%. it is largely due to one analyst report. he really -- released a report on huge losses for motorola. he said their gross margins will be cut and half or more in the coming years. it appears that no lobbying, gulf outings -- golf outings, or overcome thean forces driving competition and innovation.

motorola responded saying that the comments were baseless. let's bring in andrew of citroen research. he joins us by phone to elaborate on his call. above 70. it is talk about motorola weaknesses. are they that profound that we will see that kind of drop? through all of handsetsducts, sales to law-enforcement industries. they average $5,000. you can buy the same exact .roduct in theto u.k. isyou script that out, this a complete waste of money. not only are they spending more money for what you can argue it

an inferior product. scarlet: i'm side to interrupt, reported results. if you look at revenue for the fiscal first quarter, that missed estimates. analysts were looking for more than $15 billion. the stock is down 2%. , look to beetworks a substantial myth. we will continue to monitor scarlet: disney earnings. also with disney, the revenue number is one of great concern. .ou mentioned cable networks the theme park is also a huge profitability. revenue, 14.8

billion. estimates had been 15.3 billion. white a substantial miss. scarlet: when you look at the stock, it is trading lower. we will look for some intelligence on busy from ceo bob iger. hisas already had to extend contract a couple of times because they have not found the placeperson to take his when he leaves. stick with us here. we want to go back to the disney report and bring in paul sweeney of bloomberg intelligence. what is your impression? mixed bag.miss -- be a toughs would quarter for them. quarter theyirst

would have to deal with the nba contract. the company had traded down for that. this will be something that the management clearly has to address. those are the issues. if you break the concern for investors, and how the outlook looks there, particularly from the scriber perspective, are they still losing subscribers? if so, to what degree? what is a competitive response for european? -- espn? scarlet: they have said they will release of subscription service that should bring back some customers. joe: the real issue for espn, unlike some other networks, what content would espn put on the streaming service? what if the australian rules

football or the nfl and nba? that remains to be seen. the real issue for you and -- espn if they have shelled out billions of dollars for global nba, and theyfl, really need to keep those within their paid tv bundle. they walk a fine line. clearly, the industry will look for more disclosure from espn and the distasteful. -- the disney folks. correction.uick the cable networks do not include espn, right? >> correct. the operating profit mix -- msiss they will have to get a handle on that. joe: paul sweeney, you will be staying with us for more on

disney first-quarter earnings next. this is bloomberg. ♪

you miss?hat did disney reporting results, missing on the top line for the gold first quarter. joining us now, bloomberg tv reporter in los angeles. also still with us, paul sweeney. start with you. a drop in operating income by 11%. this, according to the company, fromue to an increase espn. >> it with abatement.

-- a big miss. they signaled that they were having problems. though, this was a big drop. joe: we are talking about the much investorin reaction. particularly surprised at this point. >> they have been telegraphing for almost a year and a half, saying, he is in is an issue, we are aware of it. we made a big investment in online baseball. they have been talking a lot about this. they have been guiding there could be disappointment. scarlet: espn was a crown jewel for espn. it was also the biggest profit

generator. what other business does disney have to make up for that? they continuereas to lean on id theme park business. they are building cruise ships as fast as they can put them in the water. those are good business for them. also, the theatrical business. the film business has been an incredible profit generator, unlike any other studio. for disney, it has an almost a street linear line -- straight linear line up. ofy bought from millions dollars pixar, lucasfilms, and are starting to reap the benefits now. probably aperiencing

bigger than expected decline in the cable business. joe: the park revenue, a little bit shy of estimates. also, studio revenue just shy of estimates. from your point, they may have a little bit of a miss, but your story is they have a line of. gotten aors have not handle on how to put a value on the studio. generally they are not valued very highly because the cash flows are so volatile. disney, again, because they put the capital upfront and have been able to buy these world-class brands, they have been able to generate profits. fiscal 2017 will be a tough year for them. they are only releasing seven films this year, as opposed to a of 11r here -- year

films. they're trying to get people to look past 2017 into 2018. that is when there is a real celebration of profits. reacceleration of profits. scarlet: disney had a huge rogue one,"h "wrot but, this year, not so much success. ne" happened to be half of "force awakens." most studios would love to have that kind of performance. it certainly helps, but they are

hobbled by their own comparisons. joe: talk about that a little bored with the studio. what is the typical valuation. other studios are much more hit driven. disney has franchises with steady cash flows. what is the valuation that they normally assigned to businesses? >> it's interesting. we haven't seen a lot of studios trade hands. what tends to get valued is 20 to 30 like times even for other studios. if you were to step back and take a look at the value, it goes into perpetuity, arguably.

bests arguably one of the libraries of all time. tremendous value there. i think most investors feel good about that compared to the peers. scarlet: how much is disney a leader when it comes to any indication of cutting the cord? they indicated that espn was losing subscribers and media stocks had a huge meltdown. is disney the harbinger for the sector? >> yes, i think they are considered the most watched. for good reason. espn is the highest price part of the tv cable bundle. argue is there is a reason you cannot cancel your cable. that is what everyone focuses so much on them. joe: what is your number one question you want to hear on the call? >> i think there will be two.

they talk about a direct to consumer play. subscriber declines are certainly unknown factor. it is something that every cable network has to deal with. espn has been reticent to give full disclosure on what they will do with espn, directed the number. the second one for bob iger, when you going to do? joe: great stuff. paul sweeney and chris paul mary . scarlet: coming up, we will go back to andrew of citroen. this is bloomberg. ♪

scarlet: we are back with andrew of citroen research.

he joins us by phone. you say that your company is exposing the own ability of motorola. you ask what president trump with think about u.s. law enforcement agencies paying five times the price charged to the eu companies. have you spoken to anyone in the white house or from the government? >> i have not gotten a response from the white house. i'm sure this will make the rounds. this iesswoman mentioned think two years ago and she said the days of $5,000 radios are over. she addressed on record the egregious pricing of motorola. it is no surprise, just like the pharmaceutical industry, to people in the know. now, when he gets out there, maybe people will understand, this is not what we think it is.

joe: is getting the present attention theoretically getting or, intweet about it your view, getting this to work? >> absolutely not. it can work many ways. i will take a step further. not just a tweet. the government said everything bid has to bevery a competitive bid. all the radios are based on new technologies. they compete, but they have to compete with everyone else around there with much lower margins. that is the new technology. there is no reason why law enforcement in the united states should use substandard equipment just because motorola has good

relationships with police chief. scarlet: you said the other reason why this trade works? >> pretty much, technology. technology is really the main one. it will happen inevitably. ihe whole first net program -- heard anyone listening to this t.gov.to firstne it is an emergency response system that will be rolled out by the government in the second half of 2017. joe: how much would have to orpen at the federal level city by city, state by state? >> that is a good question. when i started looking motorola, the real problem is the fragmentation of the purchasing of the units.

in one sitting alone you can have fire by one, police buying one. while the purchasing is done locally, the funding is done by grants nationally. if they are controlling the purse strings, all you would need for them to do is to mandate within the grant. motorola actually health minister polities to get the actually helps-- municipalities to get the ground, hoping they use motorola. scarlet: are there any other companies in a similar situation as motorola? >> i have not seen another company serving law enforcement needs with a price differentiation like what they are selling nationally and internationally. the motorola wrist once was,

these are two different radios. that would meet -- the like me tell you, there's an iphone for verizon and an iphone for at&t. almost fivecost is or six times more to build a radio for the u.s. a walkie-talkie. scarlet: have you heard from any msi shareholders? >> no. i think the report is comprehensive. i understand why people own the stock. i mentioned in my report, one word, legacy. motorola has a great legacy installed base. legacy.i look at it, i want a technology company that is forward thinking. to think -- scarlet: we've got to go. thank you so much. this is bloomberg. ♪

[ alarm clock beeping ] weather. ♪ [ laughter ] cartoons. wait for it. [ cat screech ] [ laughter ] ♪ [ screaming ] [ laughter ] make everyday awesome with the power of xfinity x1...

hi grandma! and the fastest internet. [ girl screaming ] [ laughter ] mark: it is time now for first word news. jeff sessions has cleared another hurdle to be the next attorney general. sessions is expected to be confirmed on wednesday does bite senate democrats opposition. they question his commitment to civil rights, opposition to immigration laws, and whether he will act independent of donald trump as chief law enforcement officer. it is the next round of reinstating the controversial travel bans on seven majority muslim countries. go to work in san

francisco in a few hours trying to reverse a lower court ruling. the international monetary fund warns that greece will not meet surplus standards. they say it will rise to 1.5% over the long run. that is about half of the forecast from those who took part in the bailout. the imf says it will consider making another loan to greece. russian athletes are set for another clash with the international association of athletics over doping. it was ruled that they would not be reinstated to global athletics until at least

november. the ruling could mean an official team would not represent russia at the olympics in august. global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. this is bloomberg. let's get a recap on some of the earnings that came out after hours, starting with gilead. you see, it is down 4% after the company missed on revenue, a little shy on the numbers. what do we have here? inrlet: down 4.3% after-hours trade. joe: etf came in ahead of estimates. just a quick mention of zillow at well.

revenue and fourth quarter adjusted earnings beat analyst estimates. .ou can see the stock down of course, the big one we're keeping our eye on is disney. that is after the company reported a drop in revenue after disappointing results from espn. that was a bigger than expected , even after profit topped consensus. joe: studios, parks, all coming .n a little shy of expectations about half $1 billion of estimates. moreet: you can check out on life go -- live go. joe: a less than two hours, an

appeals court will hear ban onts on the immigrants. it's that the stage for a possible supreme court ruling on the constitutionality of the troubled ban itself and the extent of executive power issuing an order. storeerg reported greg joins us with the latest. what is the specific legal issue that is being contested here? is it the nature of how the appeal was worded? >> the question it has before it is kind of narrow. it is whether this temporary order can stay in effect during the rest of the legal fight. the appeals court could go be on

that and decide whether this but itis constitutional does not have to decide that. give us some perspective here. is there any middle ground for the court. can have it both ways? potential middle ground that was suggested yesterday. said, maybe what you can do is modify this temporary restraining order so it applies only to people who have previously been in the country. in other words, if you are a student, and you want to come back, you would not be banned from entering. if you're someone who wants to enter for the first time, then the policy would be in effect and you would not be able to enter the u.s.. joe: is there any way this does not enter the supreme court?

>> it is possible. what we might get from the supreme court -- i think the loser will go to the supreme court, but the court may issue an order saying we agree or we don't agree. themwould, at least for mean they don't have a full-blown argument over the constitutionality. that is coming in the not so distant future. scarlet: the court said it would probably happen this week. how would it unfold? how much detail with they give us question mark -- give us? the court cans, do whatever they want here. now, there is a decent range of possibilities. probably an opinion with some

reasoning attached to it, by don't know that for sure. joe: thank you very much. fascinating stuff. we will be continuing to monitor this case. meanwhile, what did you miss? from politics to market, uncertainty. mcbrideo bring in bill of the blog, "calculated risk." he calls both the economic 2007 and 2008, and the subsequent recovery. postecently wrote a blog on some random concerns you are seeing. you are not totally nervous yet but there are things popping up, catching gear attention, making concerned. or

one of them has to do with the construction of high and inventory in california. >> thank you for having me on. i'm not nervous about the economy at all right now. i think we will be fine. i am's ring in the coastal areas f california, they build big new homes. there seems to be a real surplus of those this year. there is construction everywhere i go. i think we need more low to middle income home in california and across the country. and, one of the strange things i'm seeing is houses for rent or lease in that area, which i have not seen before. it may be a seasonal thing. scarlet: do you remember another time when we had a similar situation, where there was so much inventory available? >> sure.

especially on high-end homes. 2005. the dynamics are very different because that was a clear bubble in 2000 i. a littlehink, maybe irrational exuberance, if you will. everybody is excited because they have been making good money. joe: another thing, which is maybe kind of related. you pay attention to the impact of the slowing real estate demand from chinese buyers on cities. how big is this affect? how widespread could the fallout be? >> we have heard this before. that they were going to limit capital outflows. it does seem it has happened in january. again, this is a week time -- we year.e of the

i think there are areas of california that would be hit hard. .ike, san francisco e.vin that ripples into neighboring communities too. if there is less demand in the height and communities, there will be less in the navy ones. scarlet: pricing in california is in a different stratosphere for chinese buyers. they're not going to nebraska to the same degree. >> california is different from the country. they are not comparable, except for new york, or something. we have a very strong economy out here. it is multiple factors making it drive up.

one thing i put in the blog post was a friend of mine is a broker for use high-end airplanes. he is all of a sudden being softening demand. foreigneing less buying, especially chinese. i don't know. it is some interesting tidbits of data. joe: you are not all that worried yet. a few tidbits. less demand for airplanes, higher real estate. real quickly, one last question. people are excited, business leaders are enthusiastic about the trump administration. they think lower taxes, more deregulation. a lot of business surveys have been shooting out. in your view, is there a direct and theween the ride economic data to come? >> i think people are getting

ahead of themselves. everybody expects tax cuts, less regulation. i know that goldman sachs wrote last year, don't worry about immigration or trade. i think people are kind of changing. we have not seen a plan for tax .ut we saw an executive order on immigration that was sort of meaningless. there is no infrastructure proposal other than building the wall. you know, we need to see the plans before we can make a judgment. i don't eat them coming. i don't know. joe: great stuff. we will be following your blog develop.hese stories up next, we hear from the women behind the makers conference and how they are trying to send a bold message to women everywhere. this is bloomberg. ♪

scarlet: even though data show businesses outperform with women, we're still talking about class feeling. a conference that launched today in, all the, california, challenged that. a video message from hillary clinton. we set down with makers finders -- founders. they talked about why this year is so crucial. >> a really started as an idea to tell women stories. i think, fast forward five years later, with the force of air well behind it, it has become a movement and a platform.

>> i think a big piece of how it has a bald is we need to reach women and girls everywhere. it went from video to documentaries. we produced our first song this year. thinking of ways we can really reach people everywhere. >> even the men. men,e launching makers which we will premiere on wednesday. weatherby at school, i've worked, at play. >> i think you have to celebrate the men celebrating women's rights. we are really trying to highlight the story. can seeways say, if you it, you can be at. too. men will see it

line will have a long waiting. sellings the platform into other countries? >> our first lunch was china. >> it's interesting. you want to focus on the country that needed. we also feel like china has the scale. >> when we went into china, then canada, and that u.k., we selected 10 women and had on the ground partners. it was authentic. it would not feel authentic if we picked the top 10 women. and, these stories are universal. >> will you give us any inkling of where you will go next? >> that is a secret.

>> tell us what people will take away from this conference. there will be a lot of speaking, a lot of dialogue. laterare trying to create the action items coming out of this conference. we will create an agenda and share with not only the attendees, but everyone who joined in on the livestream. we will give them concrete ways. increase from how do i my wage to how do i change a tire. scarlet: that was caroline hyde with the makers conference in california. coming up, one auto industry about raising prices per vehicle. this is bloomberg. ♪

scarlet: what did you miss? a new auto and is the study suggests that donald trump border tax would serve us sharp such ascompanies mercedes-benz, and jaguar. you basically engaged in a thought exercise here. talk a little bit about your winding. let's take two companies. let's talk about ford. how much would they have to raise prices by to offset the tax? isin ford's case, the issue what did they bring in from outside the country that they

sell in the u.s.? the answer is small cars and midsize cars. whereas, jaguar them rover -- land rover, they are bringing in very expensive vehicles. the issue of how much of your content is domestic has everything to do with what the cost will be, in terms of the border tax. it is also an issue of your profit. what we have done is taken two sets of assumptions. one, we have assumed there is a change in the corporate tax sector, and we have assumed the offset to that is the border tax. obviously, all of that is speculation. the other issue is what will the companies do? they will make decisions based on their own profit maximization. we will see some countries

eat some of the tax. and other cases, they may have on most or all of the cost if they felt that would lead to profit maximization. joe: part of the idea is having companies do more manufacturing in the u.s. do you see that happening in the event of a border tax question mark would it bring supply chains more domestic question mark -- domestic? >> there is more flexibility in the supply chain, both in terms of the number of facilities and the ability to invest in the capacity that they need, etc. as you are well aware, it would take an automaker a lot of money and time to move assembly. we are saying, that could be a

policy, but that will be a policy.erm it is something you can't first the within a four year presidential term. it would depend on where the stacks upax up -- on this. scarlet: what kind of response have begun from this thought exercise? >> a lot of suppliers have been asked by their customers to move production from mexico. particularly those with the idea of exporting not only to the u.s., but around the world. for many medium suppliers, that t. a lif our device is if you are thinking about that, this is a decent place to pause and the what will happen. use yourcontinue to

u.s. facilities, perhaps to increase capacity. it is what automakers themselves have been doing. musk, one ofo elon the ceos on the trunk advisory board. how does tesla stand in this this?on mark > -- in of a wilds a bit card. we made the assumption that their offshore supply base is relatively moderate. as the model three comes online and the volume goes up

dramatically, the idea is panasonic will be producing not just cells, but packs at the bigger factories. of course, the battery is a significant amount of the input. they would be relatively modestly affected. we know they get them components from mexico, but we think it is rather modest. scarlet: thank you so much for joining us. >> thanks for having me. joe: a check again on the shares of disney. they are falling in late u.s. trading. we are getting more details on the result on the company's conference call. stayob iger says he will ceo if it is for the good of the company. you can listen to the call on bloomberg go. this is bloomberg. ♪

>> you're watching "bloomberg echnology." the ninth u.s. circuit court of appeals in san francisco says it likely will not issue a ruling today on president trump's executive order restricting u.s. entry to seven predominantly

muslim nations. the decision could be rendered later in the week. it is currently hearing arguments from justice department lawyers and opposing attorneys. betsy devos has been confirmed as u.s. education secretary. she is a longtime gop donor and squeaked through after mike pence cast a tie-breaker, the first time a vice president has done so for cabinet member. jeff sessions has cleared another hurdle in the senate to be the next u.s. attorney general. that is after the senate voted 52-47 to move on the nomination. he is expected to be confirmed on wednesday despite democrats opposition. this weekend, president trump will host the japanese prime minister. trump will host him at mar-a-lago. the trip is ays testament to the close relationship between the u.s. and japan.