the most important function or responsibility a president has. i think the president made a right decision to ask for his resignation. you cannot have a national security advisor is leading the vice president and others. i think the president was right to ask for his resignation and i believe it was the right thing to do. emma: ryan also defended president trump holding talks with japanese prime minister shinzo abe as mar-a-lago resort. --ed on his underspending understanding, no classified information was discussed. rish officials -- british officials -- skewed -- leaders are steering clear about climate change. turkish authorities have arrested a man they believe health plan in new year's eve nightclub massacre in istanbul that killed 39. that is according to a turkish news agency says the suspect is

a french citizen. state has claimed responsibility for the attack. the suspected shooter was arrested last month. madison square garden has lifted its ban on charles oakley according to ap, citing a person briefed on the discussion. james dolan banned oakley last week after the former power forward had a very public altercation with security guards. -- happenedtion was today. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> live from bloomberg's world headquarters in new york, i am

julie hyman infrastructure for. >> -- in four scarlet fu. investors are scooping up equities on janet yellen's comments on capitol hill. in economics, yellen told lawmakers that more rate hikes could be appropriate if the economy stays on course. yields added five basis points after her testimony. in politics, president trump just weeks into his presidency and his national security team is racing to find a new advisor in the wake of michael flynn's resignation. plus, we go inside the sports business later this hour. joe: we have breaking news. will be, donald trump meeting with the ceos of some retail companies, target, walgreens, they will be meeting with the president. should be interesting in light

of some of the tax debates happening regarding the border adjustment tax which could affect them significantly. julie: they have formed a lobby of some sorts to lobby against the border tax saying it would be harmful to their businesses. we will see what that exchange looks like. joe: very interesting to see those comments. it's look at what is moving markets. bloomberg's abigail doolittle is standing by. abigail: yet another record-breaking day. we have some health care stocks that are standing out to us. first up, aetna and humana, these shares are trading in mixed fashion. humana just slightly lower after the companies decided to abandon their $37 billion merger agreement. this come after a judge last month basically blocked it. edna is trading higher. is trading higher. cigna and anthem are also trading in mixed fashion. cigna is saying they are terminating the merging agreement.

judge blocked that deal. there also suing anthem for reverse termination fees. but anthem is saying they do not have the right to do this. this will be a story that will develop and we will pay attention to it. as for the top sector, once again we are looking at the bank sector are financials up three of the last four days. helping that move, the 10 year yield up for basis points. haven bonds are trading off for a fourth day in a row. first time that has happened since the middle of december. the bloomberg dollar index also up for days in a row. first time that has happened since november. of course the big question am especially with fed chair janet would like to raise rates if the economy allows the federal reserve to do so. what is up next for rate hikes and the yield? terminal,look at the

this is a solid charge. in white you have the fed's preferred measure. in blue we have a 10 year yields. this is a two-year view. there was a big gap come ultimately 10 year yield fell down to the pce. on the lastgap quarter of suggesting a perhaps investors are ahead of themselves in terms of that massive move up and yields as bonds slow. once the 10 year yield again dropped down to the pce. thanks, abigail. as abigail just said, federal reserve chairman janet yellen sounds that she is on a mission to raise rates regardless of what president donald trump does. she did issue a note of caution. >> as a noted on previous occasions, waiting to long to remove accommodation would be unwise. potentially requiring the fomc

to raise rates rapidly, which risk disrupting financial markets and pushing the economy into recession. joe: let's get more analysis on her testimony today. let's ask the chief u.s. economist at bloomberg intelligence. great to have you back. that last comment that we just played, janet yellen talk about the danger of waiting too long. if inflation picked up and they got behind the curve they would have to have a rapid set of rate hikes. why is this such an unpleasant prospect? why are they so disinclined to let it run hot? guest: i think they're letting it run hot to some degree but they have to be careful to not risk credibility or letting an entrenched mindset into the marketplace that the fed is behind the curve. i do not think the fed is behind the curve as you highlighted in the prior chart. core inflation is still very tame.

the common theme in janet yellen's testimony is that there is optimism on the economic outlook, whether it is growth prospects or inflation rebounding, but it was very measured optimism. we are not talking about a growth breakout, just moderate exhilaration relative to what we have seen over the past year or two. julie: janet yellen has continually said it is not just monetary policy, it has to be fiscal policy as well. now there is potentially some fiscal policy coming down the pike but there are a lot of questions about it which he also highlighted. joe: they really pushed her on the notion of why the fed forecast did not change more abruptly at the december meeting in light of the election outcome and the expectations of a more pro-growth policies coming from the white house and congress. she simply said we need to see more details. ,es, if you are cutting taxes that should help the economy,

but we have to know what taxes are being cut and how it is being paid for in whatnot. are veryer cohorts congressowledging that and president trump could be moving the needle on growth but they have to see details first. joe: as soon as her transcripts were released, we saw interest rate shoot higher, they continued higher. they trailed off a little bit but you can see the chart here -- to your mind what was the news today that she made that move markets? carl: i think folks think she is this super policymaker and they had that expectation. --n they hear her things hear her say things about having to move more aggressively, maybe that was one of the shocks. thatheless, she has said similar soundbite on many prior

occasions. joe: it is the kind of thing where she does not really say anything new but she has a menu of past comments that she can choose from. so what she chooses to pick out, it is not like she has never warned about the dangers of waiting. but you did include that want today. although it might not be new, the fact she said it is notable? carl: i'd say so. we saw expressions and themes we have seen in the past. i do not think by any means she was taking a turn to any stretch. you saw a little market reaction but it started to fade later in the day. julie: weigh in on march. carl: we have to be very careful. the fed wants the meeting to be live. you have a one third probability for march. joe: we have the work function of fear, about a one third probability. for may than0-50 75% for the june meeting.

the fed wants march to be in play but they will not have enough confidence with the economic data meeting their expectations, which is the key reason she offered as justification. joe: if they really want to go in march they will have to talk it up more. they do not want to surprise the market. they will want to see market base expectations move closer to a higher number. carl: absolutely. mind you, we are still growing below 2%. thethere is very little urgencyr bearing downntinue on policy normalization and i think we will get cooperation of that tomorrow when we see retail sales are so-so at the start of the year. industrial progress -- production not been particularly strong. there is a great surge of optimism following the election but we have not seen it translating into hard, economic data. so we are still stuck in a 2% at

best type of economy. if that is the prevailing economic tone than the fed can really proceed with significant gradualism. julie: it is not translated into policy yet, either. thank you so much, carl. tune in tomorrow, it :00 a.m. new york time we would talking 8:00 a.m. new york time. he will be on daybreak america tomorrow. joe: "what'd you miss?" earlier this afternoon president trump overturned in obama-arrow -- anticorruption rule that would have -- how would this benefit companies like exxon and chevron? catherine, explain to us this rule and why the administration overturned it. guest: the rule is pretty simple. it is modeled on similar rules are ready adopted by the eu and

the u.k. it is basically an anticorruption measure. if you force me to disclose their payments to foreign governments, watchdogs and citizens in those countries will know whether or not their resources are being used in ways they should not be. idea.at is generally the this is something that companies like exxon and chevron have lobbied hard against spirits it is set to go into effect next year. the congress has put a target on this one because they side with the oil companies. they think this is an overreach and i passed a resolution to overturn it. president trump cited today. -- signed it today. julie: does it cost them extra money, what disadvantages does oppose for the oil companies? argument ishe main

they would be forced to publicize assets and investments in foreign countries that the international competitors would not necessarily have to. so private owned companies would have access to information about what exxon is investing in in nigeria or some other country. whereas exxon would not have the same information. julie: i mean, i know i'm asking you to represent what they are -- if, but how exactly saudi emco knows what exxon is wouldn't it be payments to government rather than actual investment? catherine: the payments to government include bonuses that you pay to government as part of your extraction. that includes taxes, many other kinds of payments that run into the hundreds of millions, even billions of dollars. these are massive investments. the argument that xm and chevron

make is they prefer to keep these closer to the vest. this is proprietary information, that is their argument. joe: catherine, appreciate you coming on. coming up, from politics to sports. the philadelphia 76ers and the new jersey devils as part of his portfolio. we will have advice for anyone contemplating team ownership. this is bloomberg. ♪

♪ julie: "what'd you miss?" the bloomberg sports summit held here in new york brings together people to discuss the money behind the game.

earlier today, jason kelly shot -- set down with josh harris. he is the principal owner of the new jersey devils, photo via 76ers and crystal palace football league. >> high single-digit across the sporting world. each sport is different but much of what is underpinning evaluations is the growth in fandom all over the world and the internationalization of sports content. sports is still one of the only things that people need to watch live. lastwatching a tape of the 76ers game is not as good as watching it live. it becomes incredibly important for media channels and cable companies, advertisers. it commands a real premium. billions of people start to watch the sports, you're reaching a much wider, global audience. that will keep driving up value of sports business is up.

in some cases, particularly in the premier league and nba and nhl, you're seeing licensing, branding, the ability to sell merchandise all over the world. all of that is driving sports values up. the truth is as an investor, i try to figure out what is interesting to own. me, you make a great low double digit return over a long, long time. that might not be perfect for private equity or you need to make more than that, but for an individual is it -- it is a fantastic thing to own. >> when you think about your portfolio, as an owner, is it balance the way you want right now? are you thinking about selling in the near future? josh: we love where we are. we are in three of the five major sports. but we are always looking.

pitch, to wait for the if you will, to use a baseball analogy. wait for that franchise that makes a lot of sense at the right valuation. >> maybe a baseball franchise or an nfl franchise down ? [laughter] line?n the [laughter] what are the economics? how much to you worry about that flown to the business? josh: the economics are the media payment goes down by almost 50% that it goes down again. relegated,et obviously your ability to support your existing players changes. so, you have to reconfigure your team. it is not the end of the world. if you have the right fans, the right organization, the right stadium and the right system, you come back up. so, there have been many

teens that have gone back-and-forth. , it does affect the economics, certainly. who is owning a team over the long run, if you own a premier league franchise you need to live with and manage through. if it happens to you, manage backup. -- back up. >> when you think about the ianging nature of ownership, imagine a lot of people come to you for advice. what is the single piece of advice you would give them about assessing a potential deal? josh: certainly market. have to buy in the right market. the right league is very important. certain sports are not right. if you're in a sport that does

not matter, you are really in a live entertainment business like a circus or something. once you get the global audience interested then you are an international media is us. they can both be interesting, they are just different. for my point of view, i think sports is a triple play. it is a lot of fun, i think it is a great individual investment , and then i think it allows you connect to the community. whether it be philadelphia or newark or south london where the , you are really touching the hearts and minds of that community. you are really a stewart. -- steward. you have to become trouble with that, you are responsible. also, just the media. in my day job where i spend most of my time, we have very large companies, they are very important in their own right. but no one cares with the price

of probably propylene is. everyone will care who is in the starting lineup for the 76ers. the glare of the media is there. you have to be willing to deal with that or to embrace it. was josh harris, cofounder of apollo management and owner of the new jersey devils and philadelphia 76ers. as france nears the presidential election and a real possibility of a le pen victory, traders are looking to defend themselves from volatility. this is bloomberg. ♪

♪ --: await janet yellen's testimony tomorrow, let's look at the main variables that the fed takes into account

when wang is action. have unemployment and janet yellen has already said we are at or near at least full employment. here is the u-3 unemployment. core pce, not quite there. also prices rising at a faster pace than estimated and the core personal consumption expenditures at 1.7%. getting closer to 2%, the fed target. as we have been talking about, fiscal policy is also going to be important to see what happens to these numbers. joe: you can definitely see why they're getting ready to hike some more. let's go back to france. concerns over a marine le pen victory is seeping into markets. this chart shows the spread between three months implied volatility on the big french of thethen the rest

european stocks. the higher the chart is the more people are concerned about france, specifically. this number is back at its highest level since 2012 during the eurozone sovereign debt crisis when people were concerned about france and many other countries. you can see the gap is starting to grow. new polls out today, they still show le pen down by over 20 points in the final runoff, but after what happened with brexit and trump and other perceived: failures, nobody feels confident that they will -- other ling failures, nobody feels confident. not like populism is this pick up start thing. it has history is there in france. the market closes coming up next. the major averages is less than four minutes into the close. the dow, s&p and nasdaq are all at records. this is bloomberg.

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♪ julie: we are moments away from the closing bell. "what'd you miss?" records onng to

optimism. janet yellen signals the central bank could raise rates in march. i am julie hyman. joe: i am joe weisenthal. "what'd you miss?" if you're tuning in live on welcome we want to wor you. julie: we begin with market minutes. take a look at stocks. major averages trading at records again. the russell 2000 joining the party for the second straight day. after more than a decade of not having simultaneous highs for the major averages, now we have had a string of them. a headline crossing, goldman sachs is closing at a record today, eclipsing its high from basisso both on a macro and a stock specific basis, records.

goldman sachs up 1.3% on the session, the best performer in the dow since election. apple as well. hurts, apple up 1.25% on the day, another record as well. said itthe day, cigna was canceling its merger with anthem. anthem said you can't terminate the acquisition, so some back-and-forth, not clear what the outcome will be of this, but and thumb closing down .1%, cigna rising .6%. joe: let's look at government bonds, action all in the u.s., the two-year and 10 year higher on the day. :00 am, testimony from janet yellen, who did not take march off the table and warned about the risks of waiting too

long to hike rates, which was perceived as hawkish. let's look at an intraday chart of the 10 year, shooting up at 10:00 a.m. when that testimony hit the wire, continue to rise for a while, 2.5%, then pulling back, but the key takeaway from janet yellen is that the fed would like the option out there of being able to hike in march. julie: taking a look at current seas, in terms of the dollar on yellen's testimony, a spike in the to what we saw dollar index, ending the day higher. if you look at the bloomberg dollar index, .1 percent, that clear movement higher as she was speaking. if you look at the dollar versus a basket of currencies, the south african rand was the big winner of the day, up 1.8%, the

pound the loser, down .5 percent, the yen also falling back .4%. joe: on the commodities front, oil and gold, both a little higher, but not much. action at the intraday and gold, let's bring that up, reverse of what the dollar did when we got those hawkish 11 comments -- those hawkish yellen comments. those are today's market minutes. joe: "what'd you miss?" u.s. stocks reversed early losses, extending a six-day rally as janet yellen told congress that more interest rate hikes would be appropriate if the u.s. economy stays on course , so are we in euphoria? are bloomberg macro strategist joins us now, and you have your

own proprietary risk indicator that you used to judge market mood. give us a flavor of what goes into this and tell us what it says. >> sure, it is an index that looks at relative asset price moves, changes in implied volatility and financial conditions, and you can imagine the sorts of things in terms of specifics, but it is created and a way that expresses a standard deviation, and index reading of one is a risk appetite -- risk seeking behavior one standard deviation above neutral. as you can see from the chart, -- it's only half a standard deviation above neutral, which is not particularly euphoric. the rule of farm is two standard deviations away from zero either direction is the danger side of a reversal. be, wake meeems to

up when something more interesting than an all-time high happens. julie: what does that tale about the sustainability of the equity rally? it throughlook at two different perspectives, one, people are not buying it and are skeptical, but the longer you continue to make all-time highs with low participation, the more performance risk comes into play and people will get sucked into buying the all-time high, which is not generally the best idea, but if it keeps going up and you not in it, you have to get in it at some point. julie: you are also watching currencies, we just looked at dollar-yen weakening, and i guess you have a pivot point you are looking at? >> it has worked quite well over the last six months or so as the market has romance the dollar as it were. i'd like to look at the 40 day

window, which you can find on the terminal, a rolling envelope of the high and low points of the past 40 days. if you look at the middle of that, so 50% retracement of the two banks, it is a useful pivot for dollar-yen. when we close above it, we tend to keep going. when we close below it, we go down and keep going. that level is 11510 at the it with alooking at trader's on, you don't want to get stuck into buying below there, because the risk is we are still in a bear market. joe: let's bring in the news of the day, janet yellen. what was your big take away from the trader perspective, what is the -- evolutionary, not revolutionary.

if you look at her communications for the last 6-12 months, she has tilted. you are alluded to the risks of waiting too long to move and the potential downside of financial stability and inflation. a year ago, six months ago, there was a lot more emphasis on what if we go too soon or too far, and that was notably absent from the testimony, so from that perspective, i think what we can take from it is obviously she wants to go. whether she goes in march is an open question. joe: we have a fed funds futures chart here. what are they telling us? >> it tells you there has been a lot of noise and not a lot of signal this year. you can see that last rise up to of two thirds of the way through the chart, that was around the time of the december fomc meeting, and since then, we have been range bound.

this is the fed funds contract for january 20 18, which represents expectations for fed funds at the end of this year. gone close to the high in terms of the expectation, but until you break as you were,t is and the risk of trading to actively is you get sucked into buying high and selling low, which is not the gateway to profit. joe: we saw this 10 year yield shooting higher today, jumping 2.5%, then faded back a little you but we have been stuck, talk about fed funds futures not going anywhere, but there is not much action going on -- >> it is interesting, isn't it? it is characteristic of these assets, other than equities, a in of sound, not much fury, the sense we are not getting trending price action, so can we

bring the chart? julie: there we go. >> so here you see what you can call a pennant formation, which you normally think of as a iftinuing pattern, such that you break out the top, you get an explosive move higher. that being said, you can look at it as the head and shoulders on the downside. joe: you see this kind of formation with a diagonal line, straight line, and the narrowing -- >> it even shall he resolves itself. given the internal structure and technicalon, from a view, break the downside, target 2%. break the upside, 3% or more. we have been waiting, several to we will resolve ourselves. joe: what's the next big thing on the macro calendar?

>> u.s. cpi tomorrow. thank you very much for joining us. fed chair janet yellen will the liver the second part of her congressional testimony tomorrow at 10:00. we will take the q&a portion of the hearing. julie: the deadline nears, berkshire hathaway, the latest to come out with its holdings as the end of last quarter. this is a snapshot of holdings, though it tends to hold things for a long time. boosting its stake in airlines as well as apple, so berkshire saying now it's american airline stake is a .79%, so doubling that state it has taken delta .9%, so it's taken

delta and american airlines roughly equal. it's apple stake up by 42 million shares, 57.4 million shares total holding and apple. obviously apple is a widely held stock. it looks like work sure is the number nine holder of that company with a 1% stake over all . so those are some of the highlights coming from berkshire. we will watch the others as well. joe: one other company berkshire has taken a stake in, monsanto, jumping 1.3% after hours on the news. coming up, we head to san francisco for the goldman sachs tech conference, where we hear what is next for the compan y's $1.2 billion stock buyback announcement. this is bloomberg. ♪

mark: first word news. one of the names floated as a possible white house national security adviser is former cia director david petronius. he resigned from the agency over an extramarital affair and later pleaded guilty to mishandling classified information. willer gets the job replace michael flynn, who resigned yesterday over allegations of an proper with russian officials. the justice department told the white house that michael flynn had misled them. the senate has voted to confirm linda mcmahon's nomination to lead the small business administration. she is cofounder and coexecutive of world wrestling entertainment. she enjoys the support of some senate democrats was easily confirm by vote of 81-19.

the sba assists small businesses and entrepreneurs by providing government backed business guarantees on loans. the iraq he army begin deploying units to the western side of the tigris river in preparation for a renewed assault on mosul. the eastern side of the city has been retaken from islamic state, but the other half is under control. iragi special forces units are already in place southwest of the city. armoredlar army's main element, the ninth division, is now moving its units to the south and west of mosul. todayyor of flint meeting to discuss the decision to no longer fund residential water bill credits or help the city pay for water from a detroit area system. state officials say the assistance will stop at the end the levelth because

of lead influence water no longer exceeds the federal limit. michigan has been partially covering customer bill since april 2014. governor snyder says the state will have spent $41 million by the end of the month. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. . am mark crumpton julie: "what'd you miss?" let's take a deep dive into the bloomberg. usingn find the charts the function at the bottom of the screen. we are feeling the love. i know you are not a fan of thematic charts, but we found some good ones today. joe: we are on the theme, but not stretching it. ok, important news. cocoa prices have been falling, an eight-year low right now, the white line on the chart, bigger harvests in latin america and west africa, about 70% of global

production. cocoa down 33% over the past 12 months. blue bars are looking at short bets, so we have record negative bets compared with positive ones in the cocoa markets, so a big gap down. this is the biggest we have seen in data that goes back to 2006. ,t the same time, sales chocolate sales are down in the three months ended in november. we saw a 2.3% reduction in chocolate sales globally. joe: i can probably get a good deal in chocolate tomorrow. julie: give your sweetheart chocolate after valentine's day. joe: good hack. staying on the theme, early we were talking about the proprietary market signal, this to your love the valentines the.

i'm not crazy about themes, but both charts are important. the bnp paribas index, the white line, the highest level since early 2014, indicating not much panic in this market right now, and a whole lot of love. the blue line is the s&p 500 and that is basically a straight line up to the moon, so perhaps some concern with people getting eby lent and euphoric by one measure. julie: a lot of love as you say, compared with panic. there might be panic if you look at in this, the fourth quarter operating loss per share, two cents. analysts had been looking for eps of $.42, so we will see if this is the comparable number, but first blush looks like it is , the company authorizing a buyback authorization being increased by $3.5 billion. the company said its book by per

7666 as of december 31, shares pulling back a little bit in the after our session. we will look through the release and give you more details as we find them in the next few moments. this is bloomberg. ♪

the partnership between amazon and vmware showing some positive signs. the stock is up 15% year to date. caroline hyde is standing by with patrick gelsinger at the goldman sachs technology and internet conference in san francisco. >> yes, joined by patrick gelsinger, great to have you here.

we are just hearing about the joint venture with amazon. you told me off-line it is the number one public player with the number one private player, data centers, the cloud, more to come? announcingot anything today, but we are excited about the amazon partnership. the number one public cloud coming together with the number one private cloud is industry shaking. we call them hybrid clouds, people taking advantage of public clouds to build new apps. the existing apps are hard to re-platform, so the idea of these coming together comes from the best of both vmware worlds, seamless capability of combined with the new services of amazon. it has been a powerful offering and customers are way excited about it. >> how will we see revenue in bottom line, your

because we have seen the slow down in your core product? will we see the virtualization software beginning to turn around? >> we believe it will be a powerful offering. we will start shipping it in the middle of this year i'm a but we have seen customers getting more , sotegic with the vmware already benefiting and q4 partts were strong in because of that momentum. they see us in a strategically different light, the best way to take advantage of the cloud. areas liken new network virtualization and storage virtualization and our mobility offerings having strong performance as we finished the year, so we are navigating well to the new product area. >> talk to us about alternatives to the networking hardware, something you are taking on cisco at the moment. will you be taking away some of

that market share? do you have any more products? >> it is analogous to what vmware did with compute 15 years ago. you still need servers and computers, but the layer of software allows you to run 10 virtual servers on one physical server. more efficient, and it is the software, rather than needing to provision new hardware that may take a week, a month, i can do it now in the network world and the two weeks until i change the firewalls, updating the routing rules. right now you have to do that in software, and i get to do it in ways that gives more security because now i can create every virtualnd machine on any dimension and across multiple clouds. it is a game changing capability as you do things that only were possible with hardware, now with

a software layer, really profound. >> it has been helped by an acquisition made 4-5 years ago. our acquisitions on the table for more areas and more products? acquirertinue to be an of companies. at the time, that one was seen as a crazy acquisition, 1.2 billion dollars for trivial amounts of revenue, but it has created a $1 billion run rate. us to take the unquestioned leadership position in mobility. we will continue to be an acquirer of companies, and vmware has shown they have the touch vmware to bring the companies into, help them execute their passion and execute game changing technologies. we are not done. >> your parent company was bought by dell. in this new era, is regulation allowing m&a to happen?

is the trump administration a net positive or net negative? >> it is early. it will be hard to tell. we see it as a pro business administration, which in terms of regulation, tax policies, repatriation, all pretty positive for business. other areas like trade international, not as certain yet, so we are taking a cautious view overall, though we do think some of those changes could be positive for business, ours and others. >> has the travel ban that has now been put on hold, has that affected your business in any way? modest,ll, we have had but fairly galvanizing and people are concerned about it. divorce workforce, focused on having the best talent anywhere in the world -- diverse workforce, focused on having the best talent anywhere

in the world. we tried to be in a political company. >> patrick gelsinger great spending time with you here at the goldman sachs technology event, vmware. julie: thanks. appreciated. vmware ceo patrick gelsinger in san francisco. up next, michael flynn's resignation throws trumps national security team into turmoil. who will take the new job opening? this is bloomberg. ♪

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mark: president trump has an obama era ruleo . he becomes the first president in 16 years to take advantage of a law that allows him to rescind a predecessor's regulation. president trump said "this was a very important signing." by,hen mnuchin stop when asked about sanctions against russia and venezuela, he said sanctions are an important tool when used appropriately. the implication is quite significant and we expect there will be frozen tens of millions

of dollars, and again, sanctions are an important way of sending a message that we will not stand for illicit activities them weather drug trafficking or terrorism. mark: this was his first appearance in front of the press since being confirmed last night by the senate. america's children will be the winners with betsy devos as education secretary come at those words from president trump today who pray secretary to boston during a white house listening session. he said she went to "a very tough trial and unfair trial and won." she became education secretary after vice president pence casts a tie-breaking vote. the white house will start public tours again. that is according to first lady melania trump's office. lawmakers who arrange for tours

have been complaining about the unusually long break. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am mark crumpton. thanks, mark. let's get a recap of today's market action. as you can see, green across the board, all indices at records, and they continue to make new record highs despite janet yellen's testimony on capitol hill that was perceived as hawkish as she warned about waiting too long on rate hikes. some updates on some news that has broken after the bell, aig reported fourth-quarter earnings. , muchock is down 3% steeper operating losses of $2.70 a share versus estimates of $.42. that included a three dollars 56 $3.56 impasse.

r.o.e. down 4.8%, so not a beautiful earnings report for aig. julie: the same is true for plunging ands after hours of the company said its fourth-quarter earnings was ,1.17, comparable sales down 7% and the companies said the bleeding will continue. first quarter adjusted loss, $.10 versus $.25 him a first-quarter sales growth falling 8% to 11.5%. i don't see a watch on your wrist. that was a nearly $140 stock, now below $20 a share. julie: amazing. i want to check on some companies that are mentioned, berkshire hathaway added

investment in monsanto. berkshire held 8 million shares at the end of the year, also a new steak at southwest airlines tied at more than $2 billion. it added stakes in united and american as well, and boosted its stake in apple. in the meantime, berkshire cutting its stake in walmart, shares off a little bit, and berkshire exited its stake in deere. those shares are unchanged. boosted its stake in heinz and herbalife, cutting its stake in paypal, nuance, freeport-mcmoran. berkshire, it is probably holding those positions for a while. , a little more nimble, so this is a snapshot of its

trading positions at a moment in time. has sued and thumb after ending their $48 billion agreement, a deal blocked by a u.s. judge, then minutes later, and from said cigna had no right to terminate the agreement hear it for more, let's bring in drew armstrong. what is going on? >> so much for valentine's day. cigna is trying to get out of there. it looks like we are entering what will be a lengthy and protracted legal fight after this 18 months of trying to get together. the doj sued and was able to block this deal earlier this month. , which has never gotten along well with and from them, and they are

saying no, we are not breaking up, let's keep this going. julie: i know this is fresh. this came out an hour and a half ago, that the two were terminating the deal. the stocks had recovered in the wake of the election, but i wonder if you got any analyst feedback as to what this link the legal fight could mean for these companies? >> a couple of implications. investors had expected this deal to fail for a long time now. if you look at where the spreads are, they have not been trading over offer was. at net and humana -- aetna and go on are now free to about their way, try to adjust to the new health insurance realities under a republican administration and a stock market that is changing fast,

while cigna will be trying to figure out with anthem whether they will be one company or two, and united health care doing whatever it wants. it has not been distracted, so we are in serious disruption, and anthem and cigna are dealing with each other rather than business concerns they have to face. joe: the judges blocking these deals, will the new administration have any this deal let's say were announced today, with the new administration have any influence on whether he goes forward? >> yes and no. it is up the doj antitrust division to sue to block these things. that said, one thing we have seen, and i trust policy doesn't change a huge amount from

administration to administration , and did the obama administration block these because of obamacare? i don't think that got answered. yes, it could change under trump. we will seeterm, what judges he attempts to appoint to the open chairs on the federal circuit. julie: thank you. the next nonhealth care deal the administration will be looking at is at&t-time warner. "what'd you miss?" michael flynn is output sean spicer says president trump ask for his resignation because of trustee roshan and that he did not do anything illegal in speaking with pressure appeared for the latest, let's go to bloomberg news washington correspondent. i spoke with a senior trump administration source who told me that they have three

potential replacements. is close to general mattis and signals the e community establishment figures are working privately and publicly to put someone in that post whom they support. others are lieutenant keith .ellogg and david petraeus those have been folks that president trump has a long relationship with. they have to some extent supported him and advised him, and president trump has spoken highly of all three. that being said, what happens next to general flynn? i put that question to lawmakers earlier today, including bob corker republican, and senator mark warner a democrat, they indicated that general flynn could be called to testify before the joint u.s. intelligence committee that is investigating the administration and its liaisons ties to russia. let's take a listen to what

senator warner said earlier. forwo would be appropriate mr. flynn now that he has resigned to testify. i think we to know -- we need to know what he knows, not just in terms of these conversations, which clearly he indicated by that he didssion not fully disclose information to the vice president, but i think there is more to come on the subject. >> so julie, clearly senator warner indicating that even though general flynn is out of the administration, the questions around his relationship with russia remains. with au also spoke congressman today about dodd-frank could what did he tell you. he said he is getting ready to introduce legislation, the

second version that would walk by key portions of the 2010 dodd-frank law. he is taking issue with senator elizabeth warren's brainchild, the consumer protection financial bureau critic listen. >> i want to protect consumers for the orwellian name, consumer protection financial bureau. it is a rogue agency. it has been ruled unconstitutional. let me repeat that. it is unconstitutional, so in a democracy, one person should not have the ability to determine what credit cards go in our wallet am a what checking accounts we can have come or if we can have a mortgage, so this agency is not just involved in law enforcement, which it should be, but creating law and it is unaccountable. >> there you have it. joe: thank you very much. kevin cirilli, bloomberg chief washington correspondent. up next, copper prices rising

today as the standoff between workers and management at the world's biggest copper mine may be close to an end. this is bloomberg. ♪

julie: "what'd you miss?" ride for copper prices, hitting a two-year high due to supply disruption, then falling as a union at a chilean for talks. to meet let's bring in a commodities analyst at our place. how important are these strike talks in chile. talking 8% of global supply for both of the mines.

if you look at the price of we havewith the rally seen so far, that is being driven by the strike, and today when we heard news there could be a possible reconciliation, that is what sent prices lower. joe: tell us more about the mines. i don't think any copper mine could be a household name, but that is probably the closest one in terms of one people might have heard of. how significant is this to the total commodity ecosystem? it is the flagship mine of ch ile. tons of copper alone, so a major component of the global supply chain, but it has symbolic importance because this is the most productive mine , long the flagship mine of chilean copper production, and a problem here would have problems throughout the industry. julie: it makes it sound like

the workers would have a significant amount of targeting power if it is such an important mind. what do they want? >> they do have a lot of bargaining power. strike, they the built up supplies and facilities. what they want is a contract over wage negotiations. the owner and main operating partner bhp want to keep wages flat or low. they don't want that cost escalation in their margins. what the workers want our better wages, better conditions for new workers come and they generally want to see some return from this rising copper price. joe: how far apart are the two sides? is it a big cap? news is a big gap, but they are moving towards reconciliation is a good sign. this strike could go on a long time, but could be resolved overnight if they reach negotiations, so that is why

copper is volatile. in indonesia, there is also a key mind there. >> here the situation is a little different. the government of indonesia has said to the operators of the freeport indonesia, that they want to see reform in indonesia. they don't want them to sell the concentrate to china. they want to do it within indonesia. freeport disagrees. so there has been a long going the scotian on how to export this product. in january, the contract expired, so exports stopped. freeport said unless they get a long-term contract, they will , operatingoduction capacity of around 40%, and they seem to be following through with this threat. joe: why is freeport so resistant of keeping more by

chain in indonesia? >> it's not just the value chain. with the value chain, you get more control over this resource by the state, so that is what it comes down to. if freeport owns and operates this mine, they want to determine how they produce and export. resourceays about nationalization. julie: what is the outlook for copper prices? for ahave to be on guard surprise resolution. i would say the outlook if we get that, we could see prices move back. if we don't, it is three dollar copper. joe: great stuff. great having a conversation that is totally different from what we normally talk about it thank you very much. up next, we hear from the mlb commissioner who thinks the next frontier of media is for to

reality and thinks it will be available in less than a decade. this is bloomberg. ♪

julie: "what'd you miss?" we have been bringing you some interviews from the bloomberg business summit. earlier today, scarlet fu sat down with rob manfred and asked him about adding ads on jerseys as a revenue-generating strategy. ads onave talked about jerseys. baseball is a traditional game. the jerseye front of branding with under armour for the first time in the next couple of years. >> that is already a big move. toi think we will have digest that change before we go

further. >> you are not ready to write it off? >> you have to remain open-minded. you have to be careful with the changes you make him a that you don't offend the traditionalists who are our core audience, but we remain open-minded on topics like that. >> mlb was way out front with mlb advanced media. i'm curious as to what you see as the next frontier for media, seeing as you had it figured out a little while ago? big thingk the next will be virtual reality p we are spending a lot of time on it. -- reality. we are spending a lot of time on it. we have such a great group at advanced media, we think it's important to stay in the forefront of that area. >> are you working with companies already, facebook, which has oculus? working with the number of companies trying to find the best partner. we have our own in-house

activity, but we have a number of companies we are working with to get the best possible solution. >> any timeline for that? do you have a goal to be somewhere within 5-10 years? >> i see that timeline shorter than five years. i believe the technology is going to accelerate in terms of its development, and i think it will be an important part of the sports business in the short term. >> i press on that because everyone was waiting for virtual-reality, but we have not gotten there yet. >> technology has a way of having breakthroughs. it is interesting, it has not had the big breakthrough, but we experimented during the home run , had with virtual reality it available for some sponsors and business partners, and the reaction was amazingly positive, and i think if we solve the technology issues, move quickly. stakeney acquired a 33%

and has the option to increase its stake. mlb owns the rest. i wonder what kind of interest from other leagues and entities to gain equity in this business. it is separate from advanced media. it is just the technology arm, not our content, but we have had tremendous interest from partners. we just did a big deal, league of legends, euro sport. an independents entity as a result of partners, and it is an amazing platform for people who are interested in direct to consumer offerings. >> that is something that will develop further and further. mlb has tried it hard to global life the sport and done amazingly well on that front. you worried that effort is under threat because of president trump's rhetoric? well, we believe our

fundamental business objectives in terms of internationalization of the game will be unaffected by anything we have seen so far. obviously we monitor the situation in washington carefully. it is an interesting time for all of us, but president trump is fundamentally about being good for business, and we think we will continue to grow our business internationally. withve you had a dialogue him or anyone in the administration with the immigration ban and how it could affect the league. >> we did not talk about that topic. >> what you want to see from the president when it comes to the owners of mlb? >> we think it is important to have a good relationship with the white house and support for general business, pro business objectives, generally good for our sport. julie: that was mlb commissioner rob manfred with scarlet fu. joe: coming up, which you need

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

julie: don't miss this, fed chair janet yellen continues her testimony on capitol hill, appearing before the house

financial services committee at 10:00 a.m. eastern. databefore that, u.s. cpi 8:30 a.m., so much of the fed outlook rests on inflation firming. we got a decent cpi friend to mark, nonetheless, you will want to watch that cpi report tomorrow. julie: indeed, and president trump posts prime minister benjamin netanyahu at the white house. tomorrow morning, daniel tarullo joins bloomberg daybreak: americas.

>> you are watching "bloomberg technology." president trump has already turned -- has overturned a obama era anticorruption rule that would require oil companies to disclose payments to foreign governments. ahe first to take advantage of

processor's -- -- poster puzder testified thursday. the senate confirmed linda mcmahon's nomination to lead the small business administration. she sailed through with a vote of 81 to 19. the white house will start public stores after months of shuttering the building to tourists, according to melania trump's visitors office. that usually stop tours during the presidential transition, then start them up more quickly. medicine square garden -- madison square garden has banned to charles oakley after a competition with security guards after the game. a reconciliation was facilitated by nb