vowing to challenge the proposal. according to new guidelines, the u.s. will try to swiftly deport more people without court hearings and will also target migrants charged with crimes or thought to be dangerous. between syrian government representatives and the opposition in 10 months are scheduled to begin on thursday. the special envoy -- spoke to reporters in geneva. >> i am not expecting a breakthrough but i am expecting keeping a very proactive momentum. he want of unspecified spoilers as he called them, who would try to block his efforts to end the conflict. said recent diplomatic efforts by russia, a key supporter of president bush are all aside's government in turkey which supports the opposition

factions which led to a gradual cease-fire in syria and helped the political process. house speaker paul ryan is going to the mexican border. the trump administration steps up immigration enforcement and prepares to ask congress to pay for a border wall. it is the first time the wisconsin republican has visited and protests have been announced to meet his arrival in texas. china poses moves to deflate a potential housing bubble appeared to be taking effect. home prices rose last month in the few cities in the year. china has expanded curves on home purpose it -- purchases. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. this is bloomberg. ♪

amanda: live from bloomberg world headquarters in new york, i'm amanda lamb -- amanda lang. joe: i am joe weisenthal. amanda: the dollar is edging lower after the fed minutes. joe: the question minute -- is what did you miss? amanda: fed officials more confident they could raise rates in the light of an improving economy. elon musk reports fourth-quarter the past fewres in months. tesla is overvalued than ever before. finance minister gordon holding his ground in a feud with the president over control of the nation's finances. we will hear from gordon later in the show. joe: fed minutes released today showed fed officials wrestling

with uncertainty on issues ranging from the trump administration to the rising dollar. they also expressed confidence that a hike fairly soon might be appropriate. joining me now, matt, who covers the fed. takeaway fromig the minutes? matt: one thing caught my eye buried in these edits. the discussion about risk surrounding the inflation outlook. i want to read you the quick part here. some saw a risk that inflationary pressures might develop more record -- rapidly than currently anticipated. thought progress in achieving the 2% inflation target might like further if the dollar continues to strengthen. it sounds like when you continue to talk about members around the table, only two people see the risk that inflation is going to start running or a quickly while several others say there are all these reasons why inflation may be slow to rise going forward. that may be telling.

>> wiese all right after the fed minutes were released, a move from the upside to 38 percent probability. joe said it earlier. if the fed is trying to make no market reaction, they are doing a fine job. >> absolutely. that is probably what they are trying to do. in march, for example, if the market probabilities are so low? can you do that? that maybe misses the point a little bit that if the fed or likely to heart -- hike in march, you would probably see a higher -- signed to that. joe: if they were inclined to, they could get it so it would not be a surprise. >> exactly. -- them don then that in the past. amanda: one of the biggest questions for the u.s. economy, a bit of an esoteric one, is

what does the fed do with the balance sheet? they signal this time they will start talk about that in the next meeting. any sense of the plan or strategy or the runway of it? >> not really. theyone came out after february meeting and started talking about the balance sheet a lot more than they had been. we were expecting to see a discussion in the minutes about the balance sheet. there was one financier saying they're going to start talking about it at coming meetings. the discussionve yet. that shows you the stage where the thinking is. joe: you have got to decide to discuss it and start somewhere. one of the big challenges for the fed now is anticipating what will happen with fiscal policy. for the first time in years, there is the potential for something that resembles fiscal stimulus. did they give any hints in terms of what they are thinking about policy? >> they mostly said the same thing they said in the last set of minutes, which is that there

is so much uncertainty. there were a few interesting additions that caught my eye. the first is that now they are starting to a knowledge some of the potential downside risk. maybe that is trade restrictions, which some talked about, and the other one was when talking about is this context around the country, they sound optimistic and think the new government policy will lead to better conditions. some were saying, look, we will more people. amanda: thanks. let's look at where the market stand as we head toward the close. abigail doolittle is standing by. abigail: including the conversation you, joe, and matt were just having, if it was to not move the markets with those minutes, they have succeeded. the dow is basically unchanged. a small unit. it does put the dow on pace for yet another record close.

the 10 year yield dropping slightly but down one basis point. the bloomberg dollar index about .3%elt altogether right now down. gold slipped to a about very sml game. not a lot of reaction to the fomc minutes that perhaps put mixed signals for investors. where we do have trading action is home builders. they put of the big earnings $.43 per5% to boost share in adjusted earnings. it is driving this up. clearly they show the business has not been hurt by the recent move out of the election. have some very bullish trading action, or some positive economic data out earlier.

levels, the best gains in about a decade. btv 3732. home inventories down at levels last seen a decade ago, really constraining the housing market. yellow, we have existing sales. we still have great existing home sales, and an interesting dynamic there. seeill be interesting to whether or not it can continue. joe: president donald trump off his plan to support will could be minds of undocumented workers could have implications for the real estate market. the realined now by estate database service in washington. thanks for coming back on the show. potential the

deportation plan of the administration to its august -- illogical and furthest endpoint. with this move the needle for the housing market? >> absolutely. immigration is the key factor. immigrants make up about one third of housing demand. they also make up about a .uarter of construction workers the housing supply we desperately need that you saw in the last chart, a lot of that will come if and only if we improve on the labor shortages, immigration is a key card of that incurred -- a key part of the improvement. >> anecdotal stories of folks worth working visas, hesitating because thepurchase environment is so uncertain. isn't the big cool of undocumented workers what we are more concerned about? what market has been hit hardest? thing for you

cannot just entitle the story from the housing market. immigrants play a huge factor in housing from the rental market to luxury and foreign buyer demand. what we're hearing, a real estate brokerage, we're hearing that the uncertainty around the has providedorders a chilling effect two people on visas. we have had clients that have said i am on a visa and my husband is on a visa. i do not think it is a good time to buy until we figure out how extensive the new rules are going to be and who exactly they apply to. there isare saying already an impact from the would be prospective buyers who are just saying, what i -- why would i want to take the risk of committing a lot of money right now to a big fixed investment that cannot move if my residency status is going to change and i have to leave the house. >> absolutely. in the case of a travel ban and

effect earlier, if i cannot leave and visit my said, why would i buy such a big asset? heree how this plays out you create policy through an executive order instead of congressional action, it leaves a lot of holes and gaps. buyers have to have a lot of confidence to put that money down. those lead to uncertainty and that he's people from making the down payment, and making that move into homeownership. >> can we put this in the context of the health of the overall market? it looks as though a drawdown it inventory for existing homes may be bullish for the markets. overall, we think the markets will do well this year. it will be a bit better than last year. it could be better. therecould be stronger if was more supply. that is the key thing that is keeping the market at bay. we really see housing demand. demand index is showing record levels of housing

market activity, so we know the demand is there. what is lacking is supplied. it has not rebounded to the level it needs to to meet demand. absent supply, we will see a fairly good market but not nearly as good as the potential. joe: how much would you say the ack supply is a function of shortage of construction labor, which i imagine would also be affected by a big change in immigration part -- policy? >> exactly. that remainsind and the current 2017 market is labor shortages. if we know one in for construction workers are foreign-born, that we need more workers and the skill trade and a lot of them are coming from mexico, than any immigration policy will dampen the new home construction right when it is

taking off and when the market needs it the most. amanda: great to have you with us. still ahead, we will hear from billionaire real estate titan from -- on the u.s. markets. are we seeing a trump rally or an obama relief rally? that is next. this is bloomberg. ♪

>> one of the best-known and most digestible investors in the country across industries and across the globe. also the offer of the forthcoming book, straight talk. bloomberg daybreak: americas come or he discussed the market climate under president trump. question, the tender

has change in the business community as a result of trump getting elected. is a lot more confidence, a lot more willingness to take part ofd that may be what is being reflected in the stock market. >> 51% of ceo's said they were optimistic. how do you take something like that and make investment opportunities? >> we have come to a time where corporate america has more cash than it any time in history. having spent less of it than any time in history. what does that tell you? it tells you there is not a lot of confidence in the future. the statistic you just quoted suggests that situation is changing and that there is more confidence. i tend to agree. whether you call it a trump rally or able obama -- and obama

relief rally, it is occurring because people are looking at the prospect and saying, under the current administration and with the employment that president trump has made, the prospect of a return to growth in america are much stronger than they were you know, 90 days ago. question, which one is it, obama relief or trump optimism? for you, is it obama relief? >> i think the change in administration or the change in the direction is very positive and i think the u.s. was never will -- never equipped to deal .ith redistribution the country was built on growth and growth is what will solve the problems.

>> is this pure sentiment? or is it based in substance, which could be disappointing? which is it? prospect of tax relief, of solving a lot of our problems, appear greater today than they were six months ago. that translates into people willing to mix capital. both domestically and overseas, investing in the dollar and investing in the u.s. stock market. >> if it is based on expectations of relief to come, how much patience is there? when will that have to show up in the real wrote before people get discouraged? think the numbers of the first couple of months of

aretrump administration showing a lot more enthusiasm and a lot more risk-taking than what we have seen in the past eight years and so i think we are beginning to see some of that. short fused will people be? i don't know. i think there is a definite change in tenor and a definite change in orientation. >> the corporate yield spread, the lowest in two years. specifically, what investment opportunities do you see today that you did not see 98 days ago? >> i do not think you could answer the question of what specific things. i will give you an example. we just re-upped another investment in energy in the market. we previously invested in the market, which is north dakota.

in anticipation of the fact that the pipeline was going to be bills, the pipeline was approved with 98% and then the last administration chose on the last days in office to create another environmental study. scenario.t a healthy in a world where the rule of law is what is most important, if a pipeline had been approved, and it has gone through all of its necessary steps, investors should be able to bet on the fact that the pipeline will be billed. oil morefore make competitive. that is what we are talking about. anticipation and understanding of what the rules are, and implementation of the rules. that was the founder and

chair of equity group investment speaking on bloomberg's daybreak america. at somee now for a look of the biggest business stories in the news right now. the finance minister presented the company's budget today, locked in a year-long feud with their president over control the country's finances. he spoke to bloomberg after the budget confirmation. handfuls with a few will, to the other income groups, you ought to do the best you can. a narrow base on the one hand but at the same time, funding opportunities. industrializedst economy. for wealthier individuals in order to plug a revenue shortfall. is establishing a

global regulatory affairs team in washington as they prepare for the possibility of widespread changes to financial rules under the trump administration. the new group will work along side the bank's lobbyists and work with policy for the u.s. bank regulators. that is your business flash update. amanda: still ahead, we wait fourth-quarter earnings and look at how the stock is viewed. this is bloomberg. ♪

amanda: let's take a look at tesla stock waited for the numbers after the bell. tesla has a way of surprising but the expectation is not for profit in the last quarter. i want to show the degree to which analysts have turned bearish on the stock. from a fairly bullish position, going back as far as early 2015, they are deeply bearish at the moment.

does that mean bad things for the stock? things tend to rise. more of it rises, not much bearing on what the numbers say. notanalysts are definitely -- remember they are talking about the fact that we do not know how to treat the numbers, whether there be clarity on what it looks like, suddenly saying i don't know how to crunch the numbers and compare one quarter to the next. alone,y be enough reason lack of clarity, to get more bearish. >> a perfect way of staying with the stock is relative to the street here you can see it is that extremes not seen since 2013. i am talking about the french presidential race again, we will talk about a lot over the coming months. look race. intraday

going today, below 35% around 34% and that it shot up to close to 39% on the market. what happened? francois beirut, another centrist politician thinking about running for president has decided not to run. he will endorse -- he announced in a press conference that he supports an alliance. this means essentially that his odds of getting into the final round, everyone thinks le pen will make the final round, have increased. mights a centrist who have siphoned off most for him who may not be running. it does not really change le pen's odds of winning but it changed -- makes it a little more likely to the eventual competitor's. >> a good thing if you do not want a nationalist. >> interesting to see how it changes on the markets there. amanda: the market changes up next. less than four minutes to the

close. covering very close to records. positive on the dow. a nice day, close to record if it stays there. pretty done close to flat. this is bloomberg. ♪

amanda: we are moments away from

the closing bell. "what'd you miss?" lower asr edges officials prepare to raise rates fairly sin. if you're cheating in light on twitter, we want to welcome you for closing bell coverage every weekday from 4:00 until 5:00 p.m.. market we begin with our minute, taking a look at stocks, we been hovering near the record levels. the dow managing to turn in another record high. day, tradingdy right around the record that close that yesterday. we had fed minutes and we have many of our earnings to look at. some of the individual stock names that move today were driven largely by earnings. take a look at dupont, being driven by the optimism that the eu chemical deal is set for approval and you can see into his yet the in that name. toll brothers appearing to be

able to diversify its business in a way that's boosting earnings. in, sales leapt 10%. gross margins just shy of intevac percent and there were concerns about whether they could get into the auto space in a better way. a couple of new deals with cars today. ups, analyst did not like what they heard. the let's look at government bond markets, some interesting stuff happening around the world. we got the fed minutes today, ultimatelyf action in the grand scheme of things in the u.s.. short-term yields up just a hair, long-term and 10 year yields down a little bit. a little more action in short-term french yields. i'm mentioned in the last segment the news about emmanuel macron more likely to get into the final runoff against le pen. that was seen as good for french

assets today so little bit of a to out in their short-term spreads. i want to take a longer look at german yields. german to your yields just plunging through the floor. everybody is racing to get hold papers ultrashort term and even though does it yield anything, everybody wants it. amanda: over to some commodities were keeping an eye on. coffee had a bit of a move today partly because brazil suspended its imports from vietnam. it had moved to do -- farmers protesting because there's a shortage of that product for export. reaffirmingump support for the ethanol industry . there had been a lot of speculation about what would happen and a lot of lobbying about where in the production process certain regulations will apply.

this is seen is good news. there's lots of talk about farmers switching from corn to soybeans. a look at take currencies, talking about the dollar and the euro. the bloomberg dollar index down a little bit, the euro index -- of the little bit. the french news again boosting the euro. parity talk is back because if we have more stumbles, let's take a one-year chart of the euro and you can see. it's really pretty ugly. we have this calendar risk events, the dutch election and the french election. i think you will start hearing the parity work more often. amanda: let's take a deep dive into the bloomberg now. is the function at the bottom of the screen and you can follow all the charts.

debt that americans oh, were seen a massive increase in automobile debt and specifically subprime automobile debt. this is the overall picture. the line at the top's student loans, growing the fastest, but the one in the middle is borrowing on cars. one on the bottom is actually credit cards. for bit of leveling off credit cards, which is interesting considering where we are during the cycle. the creditworthiness of the debt, this is the different forms of debt from subprime to prime. the subprime there come the averages that redline and you can see it is creeping back up. you can always repossess the car, people tend to pay those off first, so it's not seen as the riskiest form of debt. of theevance is most subprime loans are coming from the car companies. the car companies feel it first. so from a stock point of view -- joe: it's not so much a

financial industry thing. amanda: definitely an investing story for the auto industry. joe: we will have tesla earnings out in a little bit. we are on standby for those. so little bit of recent history that help the tesla stock price tends to react to earnings. you can see it is really all over the map. the last couple of earnings reports, this is the swing right after the report. there have been multiple times in the last couple of years it has declined greater than 12%. you were just talking about this before, that you never really know what investors are going to trade on. there is always such accommodation of details and stories. the tesla story is incredible. so much of it is not about what is happening right now, but the future expectations relating to production and future sales and new products. there are always a lot of moving

parts so you get these big swings. on dollars of market valuation per car sold in the last four quarters. joe: the tesla reporting earnings any minute now, we want to bring in keys from our detroit bureau and kevin tynan from princeton. kevin, let me start with you. i think we have the tesla earnings out now. let's get to them. ofrth-quarter adjusted loss share of $.69, narrower than the $1.14 it had been expected. those are the first numbers that i have right now. we will be watching that. as you see there, the stock fell just .5%. the tesla model three on track for initial production in july.

revenue in the quarter $2.28 billion, also above estimates. -- tomanaging to rise surprise to the upside. the financials look like a beat. narrower loss than what had been expected. it's always about what is coming in the future. and we will have to wait for details on where solarcity it's for the year as well. we are still having a look at that. keith ninebring back and kevin tynan. kevin, what you see as the key thing to look at for tesla? what is the number one thing you see the stock potentially moving on? see the would like to

cash burn for the quarter. they had held back on some of that capital investment in the quarter. they were looking at about 1.8 billion for the year and through the third order there were about 700 million. so looking for a pretty big number in terms of capital expenditures for the fourth quarter. we would like to see where that cash burn winds up being. amanda: it looks as though we got production targets for the does it come model x, sound like numbers that will satisfy investors? keith: they're looking at the model three, the $35,000 mainstream cards that are coming. it's good news if they say they are still on track to deliver that in july. elon musk had promised he would 100,000-200 thousand models this year. they already have advance orders for over 300,000 models, so it's

expected to be a hot seller. there have been concerns about delays in production. joe: tesla says is now five newng up to factories. it sounds like a lot more capital outlay but it also sounds like good potential that there will be a lot of demand. does this headline strike you as something that tells you something about tesla's future? quick sure, and if you look at the production targets going and, 500,000 units in 2018 one million by 2020, you need factories, and that takes money. you can do it -- you need more capacity. you're probably also going to need a distribution network. i'm not through the direct sales model work with a million units per year. seeing model're three and solar roof launches on

track for the second half of 2017. keefe, does that sound like what you want to hear or do you need more specifics? >> that will be very good news to investors. there is great concern about the model three and they want more clarity about solarcity and what it contributes to the bottom line. both of those will be good news for investors. we still see some numbers on model three. producedny is never more than 76,000 cars in the year, so this is a big jump in a big test for tesla. joe: execution risk is seen as a major risk here because they are really ramping up production, all the stuff they are inventing. the stock has obviously been doing very well. does this suggest that people are coming around to the idea that they are getting it together, that people have confidence that they can do the products and get them out as currently scheduled? people are confident in elon musk. as brian johnson said today, the stock is trading on the near

superhero status of elon musk. people think he can do no wrong, that he is the next steve jobs. what they expect out of this guy who can shoot rockets into the air and land them on the -- on the ground as he did over the weekend. they believe everything he says he will do, he will do. for that reason, they see him as the next big thing in automotive. is their policy risk associated with tesla, with the new administration's stance on alternative fuels and renewables? is that something investors should be thinking about with this company? even theil now speculation those issues hasn't seemed to make much of a difference. we've had low gasoline prices, you've seen incredible growth models so it's

really not about gasoline price or the tax credit, it's just about the technology, and his teeth said, it's about the cold of -- as keith said, it's about the cult of elon musk. amanda: we are watching earnings , expectations were for $.44 per share, so we will see some disappointment from hp. there are concerns about its exposure to the eurozone. we will certainly watch and see what else the company has to say for investors but so far i'm seeing a miss on the bottom line. square, earnings out of which is jack dorsey's payment company. those are looking pretty good. $5adjusted revenue up million ahead of revenue.

5%.stock is hopping about estimates of 18 million, so that is all it, loss of just four cents a share. pretty solid looking numbers therefrom square. fitbit, the question was how the holiday season would shape up for fitbit. it looks like it's rising, but missing six cents per share on its eps line and missing on revenue as well. the number that might be helping is that it did sell 6.5 million devices in the fourth quarter of 2016. that may be reason enough for optimism here. full your adjusted profit of $.44. the consensus was $.32. joe: and shares of jack-in-the-box getting clobbered after hours. the stock is down over 12.5%. of $1.18operating eps missed estimates of $1.24.

$487.9 million, also a miss. pretty ugly numbers from jack-in-the-box. we will have more on earnings and much more. this is bloomberg. ♪

mark: it's time now for first word news. president trump will submit his budget plans to congress by mid-march. he discussed the proposal at the white house today with the team that included treasury secretary steve mnuchin and budget secretary mullaney. president trump: we will direct our departments and agencies to protect every american and every

tax dollar. no more wasted money. going to be spending the money in a very careful manner. our moral duty to the taxpayer requires us to make our government leaner and more accountable. we must do a lot more with less. mark: white house press secretary sean spicer said the plan is due around march 13, but republican aides expect the blueprint to contain fewer details as low vein he was only recently confirmed. a government official says the trump administration will revoke guidelines it's a transgender students should be allowed to use bathrooms and locker rooms matching their chosen gender identity. reversal of an obama era directive issued in may that require public schools grant from access even if student records differ or others are uncomfortable. theyhite house said

believe the issue is for states to decide without federal involvement. the you in invoice for syria says he's not expecting a breakthrough when peace talks resume. he spoke today on the eve of plan talks between syrian d's government and the opposition. he sees the meetings as the beginning of rounds that will allow negotiators to dig deep into the important issues. the last talks called off in april after research infighting. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. a lot going on in french politics today and we will be saying the lot in the -- a lot in the upcoming weeks and months.

then we got word that marine le pen's head of cabinet was charged after a police interrogation of being the recipient of misappropriated funds. the executive editor for international government joins us now from washington. john, i already feel like we have so long to go in this french election because the final round is not until may. you can feel like it's picking up steam and gathering more and more of the world's attention. let's start with the macron-a root news today. >> it's a pretty important deal for macron. it's not a game changer, i think he would've expected this endorsement to, at some point. but certainly it does end a few days of negative headlines. over the weekend he made comments about the french colonial past in algeria, talking about crimes against humanity, which le pen immediately pounced on.

he got himself into a little bit of hot water there, but this certainly changes the narrative him. it's early boosts his chances of being the second candidate to get a second round face off against le pen. so all in all a positive day for emmanuelle macron. today's news obviously is not great for her because her chief of staff is being questioned by the police over these allegations of fake jobs and the national funds benefiting tax preparers. what she's been doing all day long is saying this is part of the conspiracy by the french establishment and a conspiracy against her party which is standing up for the common man and woman in france. basewill surly fire up her and make it more -- certainly fire up her base.

the question is, will it be a turnoff for the swing voters in the middle who she is targeting? huge hurdle to go to get to the 50% threshold. joe: there was a fascinating story on bloomberg today about how much better le pen is doing this year than she did the last time she ran among women voters. there's basically no gender gap anymore between her support among men and women. what is driving that? how has she managed to make inroads among women voters this time? likelych women are less to go out and vote than men are, so there is a reservoir of untapped votes that she is going after. she's also using identity politics and friends to her phaser -- to her favor. refused to wear a headscarf when she met one of the muslim leaders.

perhaps more so than in the past, she is playing the gender she's a mother of three and she's alsol playing that card. this is all part of her long-term strategy of taking the toxic nature out of the brand and presenting a softer focused image for the french voter. kind of ally this is trend, where you have these parties that we call far right or right wing, but what makes them distinct is their strong defense of secular culture, so to speak, which they argue is under threat. it seems as though le pen is really pushing hard on that messaging that is resonating. it's a message, you see in the german election,

and also in the dutch election coming up in march. that one tends to get forgotten the little bit. that is the essential part of politicsorm, identity is back in the center and there playing the card that there are toomey immigrants coming into the country, and that is resonating. amanda: we have some breaking news from brazil. the government there cutting -- central-bank cutting its lending rate 75 basis points to 12.25%. cutting the benchmark lending rate 75 basis points. joe: and a check on some movers in late trading. 1.7%.still up that company reporting better revenue and earnings than expected, but not a huge move by tesla standards. square rallying and

jack-in-the-box with terrible results, terrible for performance after bad numbers. this is bloomberg. ♪

amanda: "what'd you miss?" let's take a deep dive into the bloomberg. i want to show you a chart on russia. this is the largest etf that tracks russia. this is a weekly change, but for the first time you can see investors leaving since the election, pouring out of this month. ,et redemptions from this etf and you can see the surge of redemption. was a sense that sanctions would be lifted in a hurry and there would be hiring in russia.

now it seems that is not going to happen. joe: another factor that could be driving this, there was a huge rebound in oil. we've talked about how there should be all these positive outlooks for oil, the cuts in opec and all this stuff, but it cannot seem to get any momentum. to the extent that it was seen also as a driver of russian assets, perhaps that's causing people to pull back a little bit. havea: and it might also an impact on canada. shares still tesla higher after earnings. we will get you caught up on solarcity's implementation as well. this is bloomberg. ♪

mark: it's time for first word news. secretary of state rex tillerson and homeland security chief john kelly traveled to mexico thursday and will meet with the president and other officials. the trip comes as the administration unveiled memos broadening the scope of federal immigration laws which could lead to millions of deportations to mexico. recently confirmed environmental protection agency administrator scott pruitt closely coordinated with major oil and gas companies , refiners, and groups linked to the billionaire koch brothers. according to thousands of pages of emails released today, the

effort was to combat environmental regulations during his time as oklahoma attorney general. the documents released under court order to the center for media and democracy reveal a chummy relationship between prewitt and an array of oil companies including gas producers active in oklahoma. london's metropolitan police have appointed its first female commissioner, the senior officer will be the first woman to lead scotland yard its 188 year history. the former assistant commissioner led the security operation for the 2012 london olympics but drew criticism for commanding in operation after 2005 operations in which a man was killed. for the first time ever, astronomers have discovered seven earth sized planets orbiting a nearby star. according to nasa and a belgian

led research team announced the discovery, the cluster planets is less than 40 light-years away in the constellation aquarius. the planets circle tightly around the dim wharf star barely the size of jupiter. they are in a so-called habitable zone where liquid water and possibly life might exist. the others are right on the doorstep. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. a recap of today's market action, a mostly sideways day. the dow jones managed to close narrowly in new record territory. broader indices slightly below the records they had yesterday. worth noting that the s&p, big chunks of it information technology and financials traded higher but brought down by consumer staples and

industrials. look at the after-hours movers from a bunch of earnings after the bell. tesla rising 2% after a solid beat. square also doing well after hours, up 5%. jack-in-the-box plunging 9.3% after it pretty much misses across the board, and boston .eer company also plunging 7% that's the maker of sam adams. after a fiscal forecast that trailed earnings. hull out of our san francisco bureau. what is your big takeaway from tesla? dana: big thing is that the model three is on time. they will begin volume production in july, which is what they promised earlier. that's a big deal for a company that has typically been late in terms of product production. the take away from the shareholder letter is that they plan to build as many as five giga factories.

do you think it will be satisfactory, the ultimate in targets are so aggressive, they really do have to hit all the production targets in between. >> this is a company that delivered 76,000 cars in 2015 and there talking to getting that's talking about getting to 125,000. they shut down the actress to begin making the model three and they are sticking to the july timeframe, so i think investors are relieved by that. the stock is trading up aftermarket due to that. joe: what are we learning about the solarcity integration? >> no one really undstood how they're going to break it out if absorbing solarcity in all its debt would be a big drag. solarcity is adding cash to the balance sheet and the cash position looks for good this quarter. amanda: there was concern there

would not be real clarity that they they would not break out the numbers clearly. have they done that in a way that will satisfy analysts? >> they are beginning to, but you will hear a lot of questions about solarcity on the call which is at 5:30 eastern. joe: i mention they beat expectations of earnings and revenue. you investors care about current financial performance at all? >> brian johnson from barclays said something similar in his notes today. most large institutional thestors are with elon for long haul. it's really about the value of the company five or 10 years from now, versus order to order. with hime sticking with the idea that he could rival ge in terms of number of employees and size. amanda: we will leave it there. staying with earnings, retail stores have been reporting profit this week. macy's beat analyst estimates.

kohl's, nordstrom and gap all report after the bell. our next guest says the slump could be a blessing in disguise. there, is itty is as strong an opportunity today as it was three months or six months ago when the elusive stock market was making things even weaker? >> i think it is still there. expectations have come down a lot. the fundamental challenges facing the industry are still present. you are seeing some of the weaker competitors still struggling. joe: who is struggling and who is not? when you look in retail, who is really seeing their fortunes turned around and who cannot turn it around? larger public companies, almost everyone is having topline issues.

financialout distress, it's the smaller private players that are taken on more leverage. so where is the best opportunity in terms of sectors that you are looking at? are some groups particularly leverage an attractive to you? >> any of the specialty apparel brands and many grocers are struggling as well. joe: we see restaurant stocks doing fairly poorly. i think there are all kinds of reasons for that including the gap between food at home and food in a restaurant, higher labor costs, higher commodity costs. what do you see as the prospects for that space? >> there has been a proliferation of competition in that space. is going to be challenging. you're seeing a shift to the qs are format and away from the sitdown format. companies like macy's

are struggling to get their operations in line. they do have some hard assets on the books. when you look at which ones are more attractive, you like the one that still on a lot of real estate, or the ones that are closing down selling some stores? >> the ones with the real estate have more options available to them. i don't think everyone can come to the market at the same time without real estate. so it has to be selective and paste. -- paced. joe: almost everyone in retail due toing smashed e-commerce. are there any surprises when you look at retail of areas that are holding up surprisingly well in the face of the threat from digital? >> at think the more specially retailers, those that are connected with their consumers are still able to differentiate their offering. anything in mass-market and more commodity is going to continue

to struggle because of price transparency, people can get better deals online. is this a function of how long interest rates have been as low as they are? >> i think it is partially that. a lot of them do real estate is a national -- natural hedge against that. i think there's a large number of retailers that have gone private and the private equity firms have needed that leverage to finance the transactions. joe: the private equity firms ultimately going to be successful? will these proved to be profitable investments for them? >> i think there will be a share of failures mixed in with a few successes. private equity firms have made a lot of money in this sector over a long time. amanda: when we look across the landscape, how many potential bankruptcies do you see? >> i think there will be 30 or 40 of scale. amanda: thanks for being here.

joe: breaking news out of exxon. the company is cutting its year end reserves a total amount of reserves by $3.3 billion versus the end of 2015. this is one of the deepest cuts to oil reserves by a company in modern history. it sort of speaks to some of the ramifications of the price drop. amanda: be seen production coming out, one of the questions will be if this is significant size in the market to change the supply and demand scenario down the road. refrains it completely how much people think is overhanging the market? it's just marginally higher after hours. bristol-myers squid shares rose after carl icahn took a stake in

the drugmaker. will talk about investing after this. this is bloomberg. ♪

amanda: "what'd you miss?" with the takeover proposal off the table, unilever is vowing to boost shareholder returns with a strategic review that might point to the breakup of consumer goods businesses. our activist investors getting a little too involved in the running of businesses? great to have you here. david, i want to start with this , warren buffett taking a run at it and pulling back before much happen. what we now see is the major consumer products play responding and saying it will

make strategic direction changes. is that a healthy response? >> it's a healthy response, but at the same time, you're seeing a lot of consumer product companies come under margin pressure. if you look at it from the buffett,ve of 3g and they look at things similar to the way we did with livermore. it provided the opportunity to make deals at less than the intrinsic value of these businesses. aselieve they looked at it that they could make a go of it. unilever shares rally nearly 6%. it was hire earlier in the day as well. would you extend on this news that the company is going to -- would you expect to see someone

else make a run at it or do some sort of action? >> i cannot say. i just look at a lot of these companies today and we don't focus on activism on some of these really large companies. i think it is extremely challenging, for all the reasons you are aware of. how much total value can you get out of them, how much more cost-cutting measures can you deliver? but there is definitely a metamorphosis happening where you're looking at things instead of from a perspective of just offering a management team or few board members, you're starting to die vendee in terms of what is the strategy that can be delivered? how can we alter the business model so that we can create a much greater shareholder value both in the short and long-term? you're starting to see those pieces fall together and it's a different arm of activism that is happening today. amanda: my question is whether

that is a healthy form. carl icahn with bristol-myers, bristol-myers clearly struggling after disappointment with its cancer drug. it's actually that getting in there and rolling up your sleeves and running the business better. is that what it should be? >> for certain. idea is thehole shift that is occurring, if you're really trying to be an activist investor, what you're trying to do is the value assigned to a public security and you are seeing ways that you can alter that by achieving much greater value. a lot of the time it's not just by simple adjustment, it's by really doing the work and focusing on what is happening in the investment environment and the business environment and how that could alter the landscape and what changes you could make

to grow shareholder value. it is definitely a different factor today, but what i'm suggesting is that strategic force and vision is extremely apparent today, and that's what the focus is. i know you play in the smaller market end of the space where you have even more power over kurt investing owners, the concern is that activist may have a shorter time horizon. you want to sell the business and get out, whereas the people that are there now they have different strategic interests. do we not have to worry about that? >> i think that's always going to be an issue. we focus on companies and boards that will always tell you that you are to short-term, you're looking at the short term and not focusing on the long-term. there should be short-term and long-term goals. if you cannot achieve the short-term goals, why would i believe you could deliver a

longer-term shareholder value? they need to be held accountable and when they are in a situation or current landscape out there today whether it's in pharma or retail or consumer product companies, the margin is getting point youd at that can see potential synergies between two companies. i push that avenue forward think makes a lot of sense in specific situations. joe: david, final question. there's always a lot of interest and whatvist investors they do. is this something that investors can piggyback off of, trying to get into some of the same positions, or in your view does it not really work that way and it's not an effective strategy? >> i cannot say in terms of individuals. the way to do it is signed a very strong steward of capital who is working on things like this in terms of activism. i would like to put livermore in that cap and i think the goal is

to drive forward and let them do what they need to do. the piggyback is hard to do because usually the values are higher after a stake has been built. theiew is trying to get right manager and stick to a long-term investor. amanda: we will leave it there, thank you so much, david neuhauser. we will hear from south africa's finance minister after delivering his country's budget. his decisions have recently been at odds with the south african president. gordon on the budget next. this is bloomberg. ♪

joe: "what'd you miss?" minister for south

africa presented the country's budget today. measures include higher taxes for wealthier individuals in order to plug a revenue short all. gordon has been at odds with the president on the country's finances. he spoke to bloomberg after the budget presentation, explaining the process. definition, the forecast, youthful work out what your you work outre and createitive factors to some kind of -- commodity prices and so on. then you do the best possible computation that you can. macro economists sometimes praised and often they are condemned. as professionals we have to keep our focus on our job and try to things, all the other

and take a lot of encouragement rum support we have from our own people in the country who andeciate the work understand that we work in their interest at the end of the day. like i said, there will always be detractors. you have to either ignore them or bypass them. secondly, for historical reasons , there is a very narrow tax base. with a handful of people at the do the best have to you can buy not overtaxing the narrow base at the one hand but at the same time, finding ways

to broaden the base on the other hand. we are one of the most stable and efficient in the world with the least number of exemptions in the world. that's what makes it good. we will see how we can enhance it further and take account of all those factors. there were finance ministers before me and there will be after me. so i don't think the individual matters, it's the policy that matters. we've maintained a sensible fiscal policy and i think we will keep everybody happy, keep south africans happy that their finances are in good hands at the end of the day. people come and go. we don't do things on our own. ,e made all the right choices despite all the difficulties. africa's was south

finance minister earlier today from cape town. amanda: time for the bloomberg business flash. they are signaling delays in his push to pull off its biggest deal yet. trying to complete the takeover of monsanto by the end of the year. the ceo said the conglomerate is in good shape and expressed confidence that the acquisition would overcome regulatory obstacles. operation that's been growing above market for the last three or four years. we continue to see above moke it -- above market growth in 2017. we will profile the next wave of products that will reach the market in the next year to come. is,answer to your question we are not in need of an acquisition. amanda: they are said it will only seek approval for the monsanto deal in the next quarter after regulators there

asked for more information. that's your bloomberg business flash. still ahead, what you need to know to gear up for tomorrow's trading day. this is bloomberg. ♪

amanda: "what'd you miss?" we saw the markets closed near

records today, only the dow managing to surpass yesterday's numbers. and the nasdaq slightly lower. barclays announces earnings at 2:00 today. that's at 2:20 a.m. eastern. joe: i will look at the democratic national committee, beginning its meeting in atlanta to elect a new party chair. everything about politics these days. amanda: kohl's, nordstrom, and gap report earnings tomorrow. that's all for today's "what'd you miss?" thanks for watching. joe:

plans toent trump submit his budget plans to congress by mid-march. he discussed a plan today, saying the nation needs to start doing more with less.

gop aides expect the blueprint to contain fewer details since the chair was recently confirmed. epa chief scott pruitt coordinated with oil and gas companies and groups linked to the koch brothers, according to thousands of pages of females released -- emails released .oday under court order secretary of state rex tillerson and homeland security chief john traveling to mexico tomorrow to meet with mexican officials. it is the first high-profile visit of envoys of the trump administration. paul ryan towards the rio grande valley today for a firsthand look at the u.s.-mexico border. the aerial tour comes as the trump administration steps of immigration enforcement. and astronomers have discovered seven earth sized planets orbiting a nearby star capable of sustaining human life.