hartline on trade relations may have made his job harder. he will speak to a munich conference tomorrow and meet with eu leaders in brussels. president trump is preparing a directive to dismantling obama policies on carbon dioxide and water pollution. the president is said to be waiting for a new leader of the in our mental -- environmental protection agency. his choice, scott pruitt, is said to be confirmed by the senate. varoufakis spoke to bloomberg from athens. went bankrupttate and europe decided in its infinite wisdom to pretend it didn't happen, and how do you attend bankruptcy doesn't happen? by extending liquidity to it and pretending it is an illiquidity problem to keep kicking the can down the road, or as i like to say, snowball up the hill.

at some point it comes back as an avalanche. creditors are weighing whether the country is in compliance with the terms of the bailout. that is needed to unlock the next installment of aid. six years after the disaster at the fukushima plant in japan, scientists still don't have all the answers they need. they have to find the melted radioactive fuel before they can begin removal. until they do that, they cannot start the cleanup that will take for decades and cost $70 billion. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. world live from bloomberg headquarters in new york, i am julie hyman, in for scarlet fu today. joe: i'm joe weisenthal.

we are 30 minutes from the close of trading in the u.s. julie: u.s. stocks near record highs as we enter holiday weekend. joe: the question is, what'd you miss? julie: president trump has been in office for about a month and despite the political chaos, the stocks have soared from one i to the next. it is the best month of stock performance under the first month of an administration since lyndon johnson. within hours of being sworn in, steven mnuchin's counterparts from tokyo to berlin warned him to be careful about how we talked about regulations. billionaire and dallas mavericks owner mark cuban tells us what he thinks about trump's presidency thus far. let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. abigail: hi there, julie, and happy friday to you, joe, and all our viewers.

mixed trading action with major averages heading to the close. on ever500 has so slightly higher, following the nasdaq. recordwith another close. the dow remains down. all these averages are higher on the week. the s&p 500 is on pace for its fourth week higher, longest streak since august. a bit of a bullish stretch. here is a nice weekly chart of the nasdaq and the bullish action we have had with stocks. nice climb up. the nasdaq is on pace for its best week in a few weeks. 15 since the election, weeks, the nasdaq has finished up 11 of those 15 weeks. a bullish stretch for stocks after the election on hopes that trump's policies will be stimulative to the economy. it has been a wild week in washington, yet we have stocks

at all-time highs. we have haven assets trading higher on the week as well. a bit of a discrepancy here. the yen trading lower. the dollar is trading lower against the yen. this tells us the haven yen is trading hybrid gold is higher for the third week in a row. markman pointed out this is higher on the week even as the stocks are higher. upally, the 10-year yield is 2 basis points, telling us that haven bonds are selling off on the week, but not by much. we have a great start that points to these mixed signals in another way. we go to the bloomberg and take v 10.k at g #bt in blue, the political uncertainty index measuring uncertainty via headlines in the media. the real world uncertainty and

fears is that highs and stock investor uncertainty is that lows could it seems that some point those two will reconnect. just to give a sense of the real world uncertainty out there, 2 stocks down sharply on the week on some of the broader uncertainties. unitedhealth group down about 2%, on pace for its worst week since october after the department of justice is accusing the company of overcharging on medicare. the company has denied that. downbigger point, molina about 20% on the week after a huge earnings miss. they put up a loss of $1.54 with the comity blaming uncertainty and issues around obamacare. we are finding out more about what is ahead for obamacare ahead. a lot happening in the real world but not affecting these stocks, at or near all-time highs. joe: thanks, abigail. what'd you miss? hours after steven mnuchin was sworn in as treasury secretary

can he was getting warnings from counterparts from tokyo to berlin on financial regulations. the message was loud and clear -- be careful what you see. europe is listening. stressedmanage and more balanced economic ties with the country. here with a deeper look at how the treasury secretary is navigating the choppy waters of international diplomacy is a bloomberg reporter who joins us from washington. we finally have a treasury secretary. it took a few weeks. everyone around the world is excited and finally getting some clarity on u.s. policy, they hope. what are the big things they want to learn from the new treasury secretary? >> well, clarity is a keyword, and hopefully they will get that . as you mentioned, germany and japan are early questioners of what this secretary is going to do. one thing that rattles them of it is his commentary around financial relations, talking

about rolling back some of those post great recession-era regulations. germany especially pushing back on that. the finance minister saying let's be careful about this, let's not scrap the playbooks so soon. japan pushing back the little bit on the implication that they have a weaker yen. that was not very satisfying to them. this all gets back to a lot of talk lately on the dollar and what might become of the trump administration's policy around the strong dollar. julie: there, too, it seems like clarity is the issue. we heard commentary on both sides -- stronger dollar, weaker dollar, what is best for the u.s. are these foreign leaders pushing for that clarity specifically on the dollar policy? michelle: i think that is the application. no one wants to wade in too deep and too early on currency conversations. this issue is just a minefield. even though the treasury no one wants tosecretary tradite face of that policy, at least in the u.s., this is something that

secretary mnuchin has been advised from people abroad to weigh carefully, and he has been asked by those on the hill during his confirmation hearings and others, what is the policy? is there any sort of departure from what the long-standing u.s. policy is, pushing for a stronger dollar but also being careful about how that is worded and being reluctant to weigh in to frequently -- too frequently? this can rattled global markets. what we saw after we published the story of secretary mnuchin's response on the hill to the strong dollar and the short-term negative implications of that, the sinking of the dollar to a six-week low. it was a good illustration of what can happen when you kind of rattled the markets to easily with talk of the dollar or not talk of a strong dollar. oliver: here's -- joe: here's the thing i want to know -- this might sound like a trumpist question, but where to

other countries get the prerogative to tell us about financial regulation and currency policy? i don't mean that in a judgmental sense. i mean that in the sense of why would this administration -- it doesn't seem like it would care at all what these other leaders are suggesting the treasury does. michelle: right, welcome i think one push back by be on the question of the dollar as the u.s. reserve currency. there is some question -- of course, push back always from china on at, and questioning on how long it will remain the world's reserve currency. really, i think it kind of goes back to with great power comes great responsibility. these countries are looking to the u.s. as a global leader in many ways, but particularly around financial markets. whenever there is departure from the bipartisan tradition of the strong dollar policy, it rattles not just the markets but other global participants. there could be some question around that. again, it is early. secretary mnuchin has only been

in office this week. but there is some uncertainty around how they are going to tackle this. of course, the trump administration is no stranger to trying to shake things up on the global stage. they in part may be wanting this approach -- let's revisit some of these long-standing traditions. julie: michelle him on that point, to pick up on joe's playing devils advocate to some extent, the lower dollar would in theory be good for exporters. haven't we had this official strong dollar policy for years, while at the same time, with this be a more overt acknowledgment -- wouldn't this be a more over acknowledgment that the weaker dollar can be a plus economically? michelle: the trade-off there is that it can be bad for consumers who want imported goods. those prices go up on imports. there are trade-offs. the bigger picture goes back to what does it mean for policy and how does that trickle-down, and of course, the uncertainty, which market participants are

not big fans of. joe: all right, great stuff. thank you very much, michelle jamrisko down in d.c. julie: coming up, tony blair talks about his call on the brexit, saint exit on the european union is not inevitable death saying exit on the european union is not inevitable. joe: and we have footage of donald trump exiting air force one. he was in south carolina earlier at the boeing factory and now we see him landing in west palm beach, florida. i believe he has an event in orlando? julie: it is melbourne, florida. he will be attending a rally tomorrow afternoon there. looks like he will be spending a little time in mar-a-lago. joe: another weekend in florida for president trump. this is bloomberg. ♪

joe: what'd you miss? former u.k. prime minister tony who want toritons remain in the eu to resist brexit fit in a speech, he said it is not inevitable and people who voted for it did not have a clear knowledge of the true terms. he joined bloomberg for an exclusive interview when he was asked what compromise is prime minister may should make. mr. blair: the key thing is to retain an ability to trade in an easy way with partners and maintain close links around issues like security, the environment, and so on. the problem, though, and this is the problem, to be fair to the prime minister, she faces, and this is not an easy task and at one level i am deeply sympathetic to her on this -- for the problem is there are no

easy ways of maintaining all those links whilst doing what the people on the right who are really driving this agenda, far right, want. if, for example, you don't want people from europe to come here, or you want bigger sections on them, it is very hard to reconcile that with membership in the single market. you see what i mean? i think the problem is i can say what i think she should do from the perspective of what would be in the interest of the country, but i'm not sure it is negotiable and even the red line she set herself. >> how does change get affected here? parliamentarians have largely backed the prime minister and have made it very clear they feel whether or not she is on the right course, they will back her. the house of lords -- are you arguing the house of lords should step in? calling for another referendum? you have argued against governing by referendum in the past. what are you arguing for here in the process? mr. blair: this is an important

point. i know there is no way that the many millions of people who feel that this decision is wrong and particularly now think we are going down the right to -- the route to brexit and any custom there is no way for them to articulate their feelings. all these different groups in different political parties who are agitating around this issue are saying, come on, let's think what we are doing here. we have to combine together. and frankly, members of parliament, who at the moment feel, ok, this is just going to happen, so what is the point of me speaking out against it, you have got to give them the strength, courage, the protection, if you like, to be able to say, hang on, my constituents are saying to me we need certain guarantees about this, or my constituents are now saying to me i don't like the way this is turning out. >> are you the right person for this?if you are not , who is? mr. blair: i don't think you

need a person. i think you need a movement. >> who starts this? mr. blair: there are lots of people already starting it. the question is how you coordinate it. people of different groups and different political parties come together. one advantage of today's politics is it does change fast. right now we need to be making the argument from getting out to people the facts, and then tracking very carefully this negotiation. remember, we have not yet begun the process of negotiation. we don't know what terms are being offered. once we know, we have got to say we like it or don't like it. minister, on this show the other day deutsche bank suggested we would see a substantially weaker pound sterling, that we would see a depreciation in town-sterling, given brexit and the path of the united kingdom economy. how much depreciation in sterling can all the united kingdom take?

mr. blair: well, that is a very good question, and it goes directly to what i'm saying, because i don't think people forcted this, who voted brexit, really expected the large fall in sterling. i don't think they quite appreciated this is the financial market's future, predictions on the course of the british economy. and already some of the imported foodstuffs and the things people rely on, the inflation rate is going up. that is a classic example of where as the pain of this becomes clear, people are going to say, ok, let's go back and ask why we really did this. and i think when you do that, you go back to certain things and certain problems, that when you analyze it, brexit is not going to affect those things. this is a very good at capital of what exactly i'm saying. tom: mr. prime minister, i have

to ask a delicate question and it has to do with the firestorm in washington at this time. it is presumed that the president will visit prime minister may. should he be allowed to speak and enter westminster hall at your house of commons? mr. blair: well, whether he enters was mr. hall and addresses element is a matter for parliament and i won't comment, but of course you will come here -- of course he will come here. look, whatever the situation is, the british-american relationship is important. i certainly am not criticizing the prime minister for reaching out to president trump. it is important to build a strong relationship. haverankly, right now, i enough on my hands without entering your political debate. >> we sit here in the city of london. how should -- how can, should the financial services sector be protected in the whole process?

in the debate the last few days -- and the debate the last few days and what could happen there and the deal -- how good individual parts of the british economy be protected? should individual parts be protected? or should there be a level playing field? mr. blair: for the financial sector, huge part of our economy, we have to make sure the arrangement is satisfactory. you can move to the equivalent arrangements but that does not deal with the problems the financial sector has. my worry is the financial sector, unless it is given fairly clear guarantees soon, will start to make decisions in advance of what the final outcome is of the negotiation. joe: that was former u.k. prime minister tony blair in an exclusive interview on "bloomberg surveillance." julie: time for a look at some of the biggest business stories in the news right now.

fairfax financial holdings has unloaded its long-term bond holdings and reduced short positions on stocks as the holding company doubles down on a bed that president-- bet that president trump will spur economic growth. decrease infrastructure spending, and rollback regulars -- regulations. wells fargo says customers open to 31% fewer checking accounts in january than a year earlier and customers cemented 47% fewer applications for credit cards. it is the fifth consecutive month the new accounts and credit card applications have fallen. wells fargo agreed to a settlement with regulators after a september report found employees open as many as 2 million accounts without customers' permission. general motors and the tsa group are discussing a valuation of roughly $2 billion for the opel unit, according to people familiar with the matter, who

say the automakers are set to reach an agreement early next week. roughly $1 billion in cash and $1 billion in liabilities. the deal could be on the table by thursday. and unilever has rejected the largest-never takeover offer -- largest ever takeover ever in the food and beverage industry from it turned down a bid kraft heinz that would create a consumer goods giant. unilever says the offer fundamentally undervalues the company. kraft heinz indicated it was not giving up. and that is your business flash updated coming up, we will show you just how bullish investors are over unilever. this is bloomberg. ♪

julie: i am julie hyman. what'd you miss? probably not the big offer kraft

heinz made for unilever. it looks like you may have missed what options did heading up to the offer becoming public. what we have here are the volume of bullish unilever options. as you can see, with this sort ish box here, we saw a surge in those options before the deal became public in the last several days, which would suggest that maybe the information, or at the very least, some speculation was out there. remember, cap times earnings came out -- kraft heinz earnings came out and there was disappointed there, not necessarily with the numbers themselves, which beat estimates, but the idea that kraft heinz was not making more deals could 3g capital has been consistently made acquisitions every couple of years -- comingraft and heinz together and now another deal. joe: matt levine says don't insider trading, but if you do,

--'t buy short options ahead they stick out like a sore thumb. everyone wants to know, why isn't there more volatility in the market? why aren't people more concerned about the stuff going on? here is one chart that provides a hint and it has to do with china. the blue line is the s&p. as you can see, just a rocket ship up to the moon. the white line is volatility of the yuan. a measure of currency volatility in china. i flipped it so when he goes down that is more volatility and when he goes up, less volatility. at various times when it dipped the last couple years, it coincided with big bounce of chinese currency volatility. but lately chinese currency volatility, the white line, very calm. that could be one factor that is sort of keeping the market bland. interesting relationship. not perfect, but something to keep your eye on the julie --

keep your eye on. julie: as we scratched our heads over volatility. very tight range in the major averages but it looks like maybe fors&p and nasdaq will gain the close. this is bloomberg. ♪

scarlet: moments away from the

closing bell. u.s. stocks near record high. ,> if you are tuning in lives, we begin with our market news. we see stocks approaching the closing bell. because ofrecords declines from yesterday. s&p up a 10th of 1%. the nasdaq gaining 4/10 of 1%. there were some interesting stories including reports out by reuters that t-mobile might be getting approached by softbank to combine together, as we heard from bloomberg intelligence analysts.

they can't officially be talking but there are reports they are unofficially talking. that story moving stocks throughout the course of the session. we've been watching lockheed martin and boeing. rising for thees straight session. lockheed martin taking a tough negotiating stance over contracts. straight session. offerat deal, making that for unilever, shares in u.s. asding, craft also higher investors have been waiting for the company to make a move like this. investors really like the idea. let's take a look at government bonds starting with the u.s.. not a lot going on here. yields a little bit lower.

u.s. 10 year yields are stuck in this range. it looks like it's going to break out. it falls back. bloomberg to the talk about france. is of course marine le pen's odds of winning. up to 34.4%. the white line is the french bonds in german bonds ticking higher. the news today, left-wing candidates, talking about an alliance that may help them get into the final round. all different ways this could go. people getting nervous about that. ofspecially with the lack accuracy with polls. people just don't trust them. julie: with good reason.

and currencies as well, the pound is notable because it fell the most in two weeks. retail sales falling for a third month in january. the euro was also hit in the dollar trading lower versus the japanese yen as we saw a risk off environment. the dollar showing a rebound. 2%.ply lower by about joe: let's take a look at commodities. of the oil not a lot front. gold not doing much. going up on some of the treasury selloffs. and think. the industrial metals associated with china, down 2%. julie: those are today's market minutes. joe: what'd you miss? the market is having its best

start to a new presidency since lbj. even as chaos the sets the white house. confidence surges. what explains this discrepancy? you try to get to the bottom of this mcauley investors, asking why are investors not worried about what seems to be a rocky start to the new administration? iswhat i keep coming back to economic data and how data points have been coming in. we've had a glut of positive data. measures of consumer confidence and business confidence. the highest since 2004. there are external factors we saw today that helped the market. m&a activity. the proposed takeover of unilever. and lifted consumer shares

it gave people something different to think about. maybe businesses are going to put money to work and use their cash for something other than buybacks. it doesn't lend itself to suggesting a lot of growth. that was something for people to think about it might explain why we ended up closing positive after a day in the red mostly. julie: we were looking at measures of confidence, there is a chart i will have to dig up. the hard data versus soft data. hard data jobs which are not gaining as much. how patient are investors going to be when it comes to deregulation and tax reform? how quickly is that going to have to come? >> so far they have been very patient. they take trump's word for it

when he is going to roll out this tax plan. if there is in the indication that is not going to happen, that he will not fulfill that we will see those trades tied to tax policy come off. that is something people are keeping an ion. there is some other stuff to distract investors. we have retail companies reporting ernie's -- earnings. earnings growth at the end of the day is one of the biggest drivers of share growth in the u.s. stock market. other things like the hard data, gdp. that will also be something people will be watching. julie: i found the chart. 2086 for those who want to look at it. what we have is the hard data. the percentage by which they are surprising. housing, industrial, labor.

business and consumer surveys in white. you see a big gap here. the zero line is this red line. >> you have to keep in mind expectations have been low for a wild. taken for with a grain of salt. i don't think the surprise rate, you look at this economic surprise index, which does the one might argue that the economy and some of these indicators have been growing better than that, in better fashion than that. joe: something that is interesting, you have reported on this, headline measures of uncertainty might be masking more interesting stuff happening beneath the surface. , it looks att here

implied volatility. versus implied correlation. the correlations of stocks, the inclination of any two stocks to move in the same direction has been on the decline. some could be doing well and some are doing badly and it nets out to what it appears to be as much activity. >> they are canceling each other out. when you know it out it comes out to be something quite neutral. have heardething i from multiple volatility traders. it could explain the low vick. big losses on one end. canceling each other out. and bringing down volatility. compared to volatility and treasuries it is a huge gap. there is maybe a little underlying equity. what you white line is want to see.

it implies there is more to investing now than just the macro column. fedyears there was just the . is the fed going to hike or not. now people are actually trying to pick sectors they think are going to do better. >> that is a great point. they like to be able to look at situational things. help set themn apart from the industry. something that -- than just looking at the p's. being able to do some real legwork and be rewarded for that instead of just dumping your money and watching it rise. are outour colleagues with a story in which they talk to investors who said finally we feel we can put money in the market. it makes you step back and say wait a minute, does that mean we

are actually getting too high of a euphoric level? there are enough indicators in the other direction investors are necessarily worried about that at this point. >> there has been this cash on the sidelines for the last year or so. any bull will talk to says just wait for it. we have all these people withholding this cash. cash levels are quite high. this is something that will be positive. as this money flows in, there is a stat that brian oliver did saying that there are is, we saw the most global equity inflows last week. people are dumping money in. a billion dollars flowed into u.s. funds as well. all signs are pointing bullish. sometimes getting overconfident is when a market tops. it is way too early to say that now but it is worth keeping in mind once everybody is pointing

straight up that is only get into trouble. it can cause a downside move. we will be watching for that complacency. we appreciate you coming on. julie: a top house conservative splits with donald trump o. we will have a statement from jim jordan of ohio, next. .heck out tv you can watch bloomberg tv and see all of the functions we use. it is pretty cool. this is bloomberg. ♪

>> i mark crumpton. time for first word news.

president trump spoke about jobs , american manufacturing, and trade at a boeing facility in charleston, south carolina. >> jobs have already begun to surge. we are seeing companies open up factories in america. we are them keep jobs at home. ford, general motors, fiat chrysler, just to name a very few. >> the president received a factory tour, focusing on the dreamliner which will be built only in south carolina. john bolton is being considered as national security advisor according to people familiar with the matter. he would replace michael flynn who resigned on monday amid revelations he may have misled vice president pence about a phone call he had with the mush -- russian ambassador before

president trump took office. u.s. defense secretary james mattis dismissed a military partnership with russia to fight the islamic state in syria. speaking in brussels secretary mattis said there was little doubt russia either interfered or attempted to interfere in a number of elections in democracies. >> they have to live by international law, likely expect all mature nations on this planet to do. what we will do is engage politically. to in a position now collaborate on a military level. political leaders will engage and try to find common ground. added russiamattis is going to have to prove itself first and live up to the commitments they made in the

russian nato agreement. angela merkel says her country will stick to its commitment to raise defense spending to levels agreed with nato partners but is in no hurry to do it. development aid and crisis prevention are more important for global security. she spoke when she and the canadian prime minister justin trudeau were asked about president trump's calls for nato allies to carry more of the financial burden. global news 24 hours a day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. towardpresident trump south carolina factories couple minting the new 787 dreamliner, suggesting a larger purchase of the super hornet may be in the offering. they became the biggest gainer in the dow today, rising to a record as well.

joining us for more on what we can expect from the president as he goes to florida, kevin from washington dc. we heard the president's remarks . what are his actual measures on manufacturing? give us a handicapping of his ability to get them through. >> right now president trump has like boeingfolks and manufacturing companies like caterpillar he's willing to appoint more members to the export import bank. this is a federally backed bank partys opposed by the tea conservatives who argue it is little more than a government taking winners and losers in the marketplace. supporters argue it helps to feed the supply systems and spur economic growth. tea party members in the last congress were successful

blocking the ability of the banks to name members to the bank's board. they handicapped the bank and the bank cannot approve any loans above $10 million. what president trump can do is appoint one more member to the export import bank to allow corporations like boeing, like lockheed martin to begin to have international financing that these companies argue will help promote job creation and job growth in the united states. i just received a statement from ofresentative jim jordan him the founding member of the house freedom caucus. he is an ultraconservative on a host of issues. he told me i thought against the export import bank for years and will continue to do so. it is the definition of crony capitalism. big business getting a special

deal from big government at the expense of the american taxpayer. as is often the case with government programs it is fraught with waste, fraud and abuse and should be shuttered. some tough talk from jim jordan. >> can he get it done? will he pull in? >> this is the first policy wonk war we are seeing between the tea party and the centrist moderate members of the republican party. democrats are with the president on this. this is an initiative backed by the u.s. chamber of commerce. yesterday i spoke with heidi heitkamp. she is supportive of this. i spoke with republicans to further illustrate the division within the gop on this. of thelay a clip

founding member of the trump caucus in the house of representatives about what he had to say. >> i came away smiling that it is going to move in a good direction. i felt good as a big supporter of exam -- x m. stress this enough over this issue, the division was a deciding one. senator ted cruz accused mitch mcconnell of being a liar. it was over this bank. it is going to get interesting. -- how pivotal is this issue? does it set the tone for the current power of the tea party in congress? >>. yes. this will be the first issue on whether or not the base of the republican party is willing to work with this administration. for president trump to accomplish his agenda he needs

the republican party. it is also an opportunity for annan,nt trump, or steve for gary colin to reach across the aisle and work with senator joe manchin and again reaching across the aisle. thank you for your reporting on the xm bank. it looks like we have some breaking news. joe: bank of america ceo getting a raise. he is getting his pay bumped by 25% to $20 million. restricted stock unit securities. he received no cash bonus in 2016. his salary remains unchanged. award,ity incentive $18.5 million. julie: those shares were up 33% last year.

they very recently were at a record. >> not a bad run. coming up, we saw the biggest outflow ever from the dow jones etf. we will discuss that and more next. this is bloomberg. ♪

julie: what'd you miss? let's take a deep dive into the bloomberg. big outflow from the dow jones etf last week. $2 billion worth. it was a record outflow. the top portion of the chart, she did a little

reporting around it. maybe some money was going into the s&p etf. you see the yellow bar on the bottom going up. instead of talking to traders they pointed out both of them are. the s&p has performed a little bit. maybe it is traders trying to get an edge. has been the best performer since the election because it has bank exposure and industrials. those are the two sectors the trump trade is into. that might explain it -- explain that. julie: you coul have people doing hedges. joe: yeah. julie: that could have been affecting things. joe: totally.

we used to talk about the oil rig counts. we don't talk about them as much anymore. in 2014 and 2015. you can see the white line, it totally collapsed in 2014. it has been creeping back up, at since 597 in the reading that came out today. you can see it understandably has been lagging. the price moves first. this is a self-correcting mechanism. it depresses the price. an interesting thing to see. interns of economic activity, that was a big hit for the u.s. economy. crash, this is another

engine kicking in. >> and the cut that opec is making might give the u.s. oil industry some more. joe: which is why they didn't think that's for worth it in the first place. watch.ting thing to let's talk of bank of america for a minute. raise, $20 million for 2016, 18 and a half million dollar equity bonus. bank of america having a good 2016 for the stock. monahan has been trying to cut costs as well. despite that cost-cutting. coming up next month why the irrational stubbornness is finally breaking. ♪

>> i'm mark crumpton. it is time for first word news. has cleared his senate hurdle on the path to confirmation as commerce secretary. a final vote is expected the week of february 27 after a weeklong congressional recess. it is -- ross is estimated to be worth $3.4 billion. agreed to divest from his financial empire. has been confirmed

to serve as epa administrator. the vote was 52-46. it came a day after a judge ruled the oklahoma attorney general's office must turn over thousands of females related to his communications with fossil fuel companies in a last bit of protest but democrats kept decision overnight to voice their concerns with his close ties to the oil and gas industry. secretary of state rex tillerson has asked china to use influence on north korea to convince pyongyang to moderate its provocative actions. dayerson may be requested during a meeting in germany with the foreign minister to china. tony blair is urging opponents of brexit to fight to keep the u.k. in the european union. he spoke at the european headquarters in london. >> the people voted without

knowledge of the terms of brexit. clear it is become their right to change their mind. our mission is to persuade them to do so. >> he accused theresa may's government of having a policy of brexit at any cost. global news powered by more than 2600 journalists and analysts in 120 countries. this is bloomberg. look: let's take a quick at what happened in today's session. we did see stocks close at record. bit of alittle pullback. we didn't quite get there. today's gains making up for yesterday's losses. the s&p and nasdaq, record closes once again. i was just looking at the election financials, up the most

since the election, up 22%. is the dollar trade psychologically broken? the mentality seems to have evolved as markets turn their attention elsewhere. strategisth macro mark on wide turmoil in the trump administration resonates. saw thenk we really dollar dipped, even though the national security adviser shouldn't have a direct influence. trump'sdermining reputation, his ability to execute his orders without due process. that undermines the reflation trade. it does matter at the moment. >> a story like this is the idea that if markets reprice their expectations about the types of policy that can get done, or push back the calendar?

>> i think the really big thing the market is ready for, the big tax deal trump is going to introduce. the fiscal stimulus. the fiscal stimulus plan is what we are really waiting for. he promised it soon. when those details come through, when will it be enacted? even if we get details it may not come through until the end of the year. the market got bold up on an imminent stimulus pre-that is what got the dollar very bold up. a lot of that has come out, a lot of steam has come out of that trade. that it continues every time trump gets distracted focusing on other issues. last year we would have only been talking about the federal reserve. janet yellen on capitol hill talking about the dangers of

waiting too long before hiking rates. is the fed still in play as an entity or is it really all about trump and the policies he can get enacted? that is a great question. the point was that it was all about trump and the fed took a backbeat. it was partially based on tightening but that was going to because of trump's policies. we see a little bit of that irrational stubbornness focusing on the trump trade, out of the market and the dollar has become more of a two-way trade. the fed is more in play. we are going to start seeing the fed dominate the dollar and more then trump policies as people start to lose hope on trump policies coming through so quickly. >> are there going to be specific data points? how are we going to read where the fed is at as we get closer

to this march meeting? still a veryrch is tough place to hike. i know it is officially still live. there's not a clear enough sign of inflation yet. inflation is picking up. core pc has remained below target. it is unlikely they will rupture when there is party uncertainty. we are looking a real sign that inflation is picking up. i things what's going to be important for the market is not when the first hike is, but whether there will be multiple hikes this year. convincedmarket is that there is going to be a hike this year. joe: i always like to ask you, what other thing are you paying attention to these days? what is the story people are

missing that they should have their eye on? two things. i mentioned european politics was going back. one more thing about european politics, it is becoming more irrelevant. how that is what a playoff and markets my don't think bond spreads are pricing in a chance of real surprise there yet. super shields are still low. when there is real spread the bonds will move further but we can wait until the actual incident before that happens. suffer. will i think the euro can suffer there. that is one issue i'm watching. emerging markets are doing very well. dogs likeeaten-down turkey and mexico start to come back. trump will be as anti-trade as

people feared. that can be good for emerging markets. they still have good growth. one of the things the market isn't focusing in, there's a sustainable story and emerging markets and in asia. news,t was bloomberg macro strategist. julie: the state of the u.s. economy after trump's election. ♪

to flareier continues

with the idea of running for california governor. he sat down with caroline hyde yesterday in san francisco. >> what i said, does this change the analysis of where the united states is? i said of course it does. turnve just seen a radical in the course of the united states for the next few years. ,nything you think about whether it is civil liberties, the rights of immigrants, the rights of people to organize in the workplace and the rights of working people, health care, climate, whatever you thought before is different now. how are you going to respond to that? wasn'twas saying, i

answering their question. whatever i was thinking about before, i have to put in a new context. >> you will run then? >> from my standpoint, the ability to put together grassroots organization to work just the way we did in 16, to work on campuses, to develop a voice back-and-forth so people can be informed and figure out what to do and get suggestions is something i'm committed to. whatever i do from a personal standpoint has got to be something that makes that effort stronger and amplifies. >> could that be made stronger by the role of governor? >> i haven't decided. >> we hope when you decide you come back. the economy. do you feel it remains uncertain? moment we have

seen share prices at record's, close amazon prequel that continue? >> i have spent a lot of time looking at markets. anyone who takes short-term market moves as a sign of wisdom or intelligence doesn't know much about markets. i think i read the other president whose term started with the strongest dow jones industrial average move was herbert hoover. i think the way to think about markets is the waymo warren buffett describes them. in the short run it is popularity. in the long run it is an adding machine. markets fluctuate in the short run. that is a fact of life. i wouldn't take them too seriously. what we are seeing in terms of the economy is something different. economy,ook at the this is a global economy. it has completely different characteristics than the way

donald trump describes it. when we think about the united states triumphing in the global economy it's not just about how we do. it is also about how we split it up. what we have seen is working people have gotten a terrible deal in our society. isryone acts as if that market forces, out of our control. that is false. every market runs on rules. employment markets run on rules. we've given working people the shaft for 40 years. there is the broad-based question about how the country does. there's a different question, who is getting the benefit of growth? our country has done pretty well for 70% of the people, they have gotten the shaft. that is what this conversation was about. how is it possible the top 1% is doing so well and everybody else is languishing? >> that wasn't changed by obama.

>> we have had income inequality for 40 years. attack are seeing is an on working people in our society. we think about what trump is doing, the idea we are going to cut corporate tax rates, there's more money for the bottom line of corporations. the people who own the stock and corporations are going to do better and we are going to cut health care, we're going to cut food stamps, cut education funds. all the basic services for middle-class people. that's more evidence the society has not paid attention to the middle class and working people for way too long. it is a travesty and it is something we should be ofressing directly instead with sayings and a few things here and there. president of next

gen climate, with bloomberg's caroline hyde. coming up, mark cuban on what he thinks but donald trump's presidency so far. it is not all critical. we would hear from him next. ♪

julie: what'd you miss? the 2017 tech summit underway in new orleans and among the attendees, hundreds of business leaders and sports teams owners. among them, mark cuban, a vocal critic of donald trump as the presidential candidate last fall. aboutcory johnson asked what he thinks of donald trump, the president. >> he is who he is.

would i hire him to run a company for me? no. he is our president. as much as i picked on him. let me go through the positives and then we can torch him. he is changing the fcc. fcc -- critic of obama's s.e.c.. i think was a mess. hopefully they will keep him there. he has a good sense. introducethey will flat line regulations. fcc, i is doing with the -- k the i like what he is attempting to do with taxes. maybe not to the extreme. i don't think he will get 20% for personal taxes but reducing

the amount of paperwork involved, it reduces costs. i think that is a positive. i think what he is doing with lobbyists, when you can't become -- i would reduce the amount of regulation. we don't need fast lanes. these things get past, that is always a challenge. i don't want to think him a full-time credit and i don't recognize the positives about what he has done. i think there is some conservative republican concepts that i as an independent can agree with. the devil is in the details. we will have to see whether or not he does that. what he is doing socially,

epa, who knowse what is real and what is not. implementation and execution of stuff is severely lacking. overriding,bigger there are 10 other things that can go through on that list, i think the bigger overriding problem is in terms of leadership and management. and personal issues for him. i don't think he is a leader. people tend to forget that he is the president. he is the commander in chief. he's in charge of the federal government. 4 million plus employees. everything he says and does, when he did a press conference yesterday, he's not only talking to the media, he's talking to 4 million plus employees.

he is speaking as the commander in chief to the military. when you do that you have to become a leader. you have to show leadership qualities. you have to be able to hear mistakes. one of the reasons we are seeing leaks and so many problems from the intelligence community and , if the guy in charge, or the woman in charge doesn't admit right knowledge mistakes, everybody that works for you, they see the mistake, they see the problem. if the type person is not accepting responsibility, where is the responsibility going to fall? on one of them. knowing they are going to get leaking tothey are save their own -- the way, the personal issues. there is no self accountability. >> his own personality.

>> he's a good guy. you talk to donald trump on the phone, he is personable. he's nice. he will listen. i never had any problem talking with him. when it comes time to discuss specific issues, to be the ceo of the united states, he is running as a ceo. he's not showing any leadership qualities that i think are important. you have to be self-aware. you have to know what you don't know. you have to be contextually aware. when he goes off after john king, during martin luther , birthday weekend, that is craziness. when he is having a press conference with the prime minister of israel and canada for that matter and he starts talking about how he won the election, and his electoral vote

count, that shows a significant lack of situational awareness. that is exemplified in other areas as well. he makes no effort to learn. it was obvious we talked about people read newspapers, they watch tv, they listened. obvious he is an analog guide. he famously does not use email. he doesn't even use a search engine. how could you not use a search engine just to learn? examplesdenced in the he gives and his lack of awareness of what is going on around him. there's no ceo in the history of ceos that can be successful without making an effort to learn. there is nothing. >> you don't think he has been successful? too early to tell.

>> people make the argument that he has been successful. >> he made a lot of money. i thought he was going to blow right by me. didn't resonate with him. it is like doing a spreadsheet. it didn't resonate at all. smart and making a lot of money, they don't necessarily go hand in hand. the onlyk that certainty about being the president is the uncertainty. you don't know what is coming next. you've got to make an effort to always be learning, to have every possible tool. which this day and age includes technology. that lack of understanding is hurting him in his approach.

that was mark cuban from the mba tech summit in new orleans. joe: coming up, what you need to know for next week. this is bloomberg. ♪

julie: market stocks of u.s.

closing at records again. buying the political turmoil we've seen. is going to testify before the treasury committee tuesday at 5:00 eastern. joe: i will look at the fed releasing its minutes for the january fomc meeting. we will see if they give anymore hence about when they will go next. and u.s. new home sales will rebound after a 10 month low. weekl actually be off next but i will be watching that in spirit. joe: hav

>> you are watching bloomberg technology. let's start with a check of your first word news. president trump spoke boeing facility

in north carolina showcasing the new 787 dreamliner which we built only at that location. the president received a factory tour, he's expected to spend presidents' day weekend at his mar-a-lago resort. scott pruitt has been confirmed to serve as epa administrator. was 52-46, a day after a federal judge ruled the attorney general's office must turn over thousands of emails related to his indications with fossil fuel companies -- communications with fossil fuel companies. the former u.s. ambassador to the u.n. is under consideration to replace michael flynn who abruptly resigned on monday. billionaire investor wilbur ross has been cleared in a sin hurdle on the path to confirmation -- senate hurdle on the path to confirmation. a