tariff on cars, he's leaving the bargaining table. but he also says he's not looking for a fight. trying to goengage into a trade war. that is lose, lose. you try to move forward. an agreement will benefit canada, u.s., and mexico. has said nafta is responsible for massive trade imbalances. europe, the british prime minister remains opposed to a second referendum on scottish independence according to her spokesman after a report from the times of london that scotland's government is preparing to call another vote. , theythe day after brexit have repeatedly said another referendum was likely. voted overwhelmingly to remain in the you would -- in

the eu. republican proposal to repeal couldplace obamacare cause people to lose their health care coverage. the number of people covered by obamacare could be cut right as much as 51% in some states. in asia, north korea has executed five senior security officials because they made false reports of enraged dictator kim jong-un. they said the executions were carried out with anti-aircraft guns. he has reportedly killed or purged a large number of top north korean officials. global news -- this is bloomberg. ♪ >> live from bloomberg's world

headquarters in new york, i'm scarlet fu. joe: and i'm joe weisenthal. .e are 30 minutes from close the white house getting its funding plan today as president trump prepares to deliver a speech to congress tomorrow night when he is expected to give his spending priorities. duefed decision on rate is in two weeks with eyes of a march rate increase rising to almost 50% rate on fed funds futures. the fed chair event later this week. opinions are split on whether snapchat shares are worth buying. we will take a look at whether the company can continue to grow advertising revenue. now let's look at where the major averages stand as we head towards the close. bloomberg's abigail doolittle is standing by. abigail: heading into the close

we are looking at marginal gains for the major averages here in the u.s. glued in the outcome s&p 500 and nasdaq. not surprisingly at least for both the dow and s&p 500 we're looking at more records. record closes and intraday highs. the nasdaq however is lagging. what of the big stories in recent times come a certainly dow is on pace for his 12th close higher, the longest streak in more than 20 years. a bullish streak. looking at several stocks that date on comments from president trump or related to the government. caterpillar the top boost for the dow of new 2% after president trump the spending on infrastructure will be, quote, big. apachegaining on an helicopter contract. unitedhealth group of about 1% after the ceo stephen helmsley, among other health or ceos, met with trump and said health care

needs to really be changed. we are all waiting for details on what is ahead there. as for a macro story, the 10 year yield up five basis points represented in red. haven bonds are selling off. this is the first selloff for bonds and four days muscle a bit of a reversal. you can see the spike higher happened around noon. this was as robert kaplan, a fed head, he said he believes he is in line with fed chair janet yellen on the idea that rates should be height sooner rather than later, not paying attention to market reaction to investors today. they take this as a cue that the fed could raise in march. in fact, probability spikes up to 50% for the march meeting. it is becoming more of a live meeting. but the question is will this happen? we have shown several charts on the 10 year yield that suggested could reverse back down. we have a different angle today.

when we hopped into the bloomberg, in light we have tlc, a longer treasury etf. this represents price. in blue we have corporate bond etf over the last five years. they trade pretty much in lockstep come up and down in this range. right now they both have found support from the bottom of the range, suggesting both may trade higher and the great bull market and bonds might not be over. joe: thank you, abigail. let's talk more bond stuff, because bond watchers will be taking their cues from president trump's runtime speech to congress tomorrow. -- prime time speech to congress tomorrow. what will they be looking for? fidelity's total bond fund. he was named bonds start manager of the year. we appreciate you coming on here.

why the overweight, and more big picture, what is the market expecting out of this administration, especially going into tomorrow by cs speech? -- tomorrow's speech? guest: we think corporate credit is really attractive, especially in the intermediate corporate credit. we still get a lot of yield over and above treasury. the thought process is trevor he -- treasury yields have been repressed for many yields -- ginny -- many years. at some point they will rise modestly. in the meantime corporate bonds are by far the most attractive sector. in terms of fiscal policy, there are a lot more questions today than there are answers. one thing we feel fairly confident about is inflation. you are whether thinking there is more likely to be tax cuts or less regulation or potentially tariffs were

immigration policy changes, we feel all of those will lead to an uptick in inflation. we think treasury inflation, protected securities are a nice thing to own. we think there is still more upside. , also.g insecurities if we see interest rate increases, those securities reset higher in terms of their income. a couple of sectors we like going forward. scarlet: all of that hinges on inflation and when it goes above the 2% target. do you see potential for pleasures from the energy sector? than --stainable rather inflation has been flat for six months. we would argue that is also a more importantly scarlet: i think we are having

technical problems with your microphone. let's get that fixed. there we go. you were saying? think food and energy, we wage pressures might be coming to the fore. as unemployment continues to fall, that is putting more pressure on inflation driven by wages. the potentialis for higher cpi coming forward. joe: here is a big question going into this year. there are a lot of arguments to be made that we're going to see an uptick in inflation, people think this is the year rates will be higher than they were at the beginning of the year and so forth. what about the big secular trend? i think the question is this trend that has been going on for over 30 years. is anything in place that could change it? guest: ongoing lower rates in the big bull market. we have been in a rising rate environment for nine years in a row. that is what a lot of people have claimed. the rationale is the reason we

are not is because there are a lot of key structural shifts. one would be demographics. think about the fact the baby boomers are aging, they are selling stocks and buying bonds. we still de-leveraging. there's still a lot of debt hanging over the marketplace. there are structural headwinds, and the fed is still buying treasuries and mortgages. all of those are keeping rates a little lower than the naturally would. , we expectnger-term real rates to come off these all-time lows we have experienced and be a little higher in the coming years. scarlet: when it comes to tomorrow evening speech, when think everyone can agree on is there is still a lot of uncertainty. he has promised to say a lot about taxes or make changes that we do not know the details. why is it all this policy uncertainty leads to greater price fluctuations in the treasury market, but loses trajectory of gains in the treasury market? guest: i still think that folks on the equity side are pricing

in a lot of the good trump policy potential. the regulation, -- de-regulation, lower taxes. the bonds are also figuring about those changes. that is creating a ping-pong approach to bond yields. has people thinking about the eyes of all of those -- the eyes of all of those. half glass full folks are really thinking on the positive side. joe: you have a position in emerging-market bonds. when of the concerns for emerging markets overall currently is the idea that a strong dollar rally historically would be very tough, raises the cost of repaying debt. others have argued it is not as big a deal as it used to be. most have a greater capacity to follow -- to finance dollar debts than they did in the past. at what point would you get concerned that a dollar rally would hurt? ford: when we think about e.m.

we do not -- we think about specific countries where we feel there is a specific catalyst to have a stronger credit quality a year or two from now. in addition to that, a number of those countries week own -- we own oil producing companies. a stronger dollar does that impact them the way it does for other sectors. joe: what are some of those countries you believe the credit conditions are improving? ford: brazil would be a good example. they're going from recession to recovery. the a very tough 2016. they defended their dollar by raising short-term rates. we think the double-digit rates will be single-digit by the end of the year and inflation is coming down as well. we see a lot of upside in their fixed income assets. your take want to get on the treasury secretaries suggestion that perhaps the u.s. should issue 50 or 100 your debt. would you at fidelity be a buyer of that? ford: it is not clear to me who the buyer would be.

remember, what is interesting when we think about bond nats is the duration is not that different from a 30 year security. those securities come with a lot more positive convexity and that is a unique buyer base. i think it would be something that they should look very closely at in terms of issuing securities, but it is not clear the demand would be there, issues.ly the treasury joe: we talked about energy companies, are there any other sectors that are interesting? ford: banks and finance. you think about the potential upside given potential changes in regulation, that is a positive. banks pay a lot of u.s. taxes. if taxes were lower that would be a big benefit. hikes two toe fed three times this year, they have very large short-term portfolios which would all benefit from

that income generated. scarlet: ford o'neill, thank you so much. of the fixed income news for the week make sure to catch our news program bloomberg real yield. it airs each friday at noon new york time. they will provide analysis for global issues that directly affect debt markets. this is bloomberg. ♪

♪ the trumpt the top of trade agenda, renegotiating nafta with mexico. our correspondent michael mckee recently sat down for an exclusive interview with the man who will be negotiating the deal from mexico's side. the economy minister. to --st of all, you have

assuming you have to look at -- you have to look at the current account as an economist. there are many other areas of interest when viewing internationally. first of all, you should not be worried about trade deficit. you should be worried about overall integration to the global economy. not trade inrld is goods. we want global value change. supports the competitiveness to offer to other countries. you have to also look at the service balances. for instance, the strength of the u.s. economy. you see trademarks and things that are not goods by themselves that are very strong advantages of the u.s. economy.

we have a lot of patents, we pay for patterns, we pay for trademarks, we pay for financial services. add the purchase of mexicans along the border, cities like houston, miami, new york, that counts for $30 billion. basically there is nothing to worry about about the trade balance. >> has the trump administration had -- have any officials told you what they want? basically the ability for new administration to talk to new officials is regulated by a strong loss. i have not talked to him because he has not been ratified by the senate. i had a meeting with the new chief of trade advisor to the white house.

by following up on interviews and the hearings of mr. ross you get a sense there is a way we could find a landing pad, how to strengthen regional content in north america and to bring back some of the best. i think there is a way to find a very good agreement that will be a win-win between the three countries in nafta. >> you mentioned giving donald trump local victories to sell in the united states. could you give me an example? >> for instance, any agreement has in itself, the kind of regional content you have to give to a product in order to be able to benefit from special treatment. that you can strengthen. if you lose incentives for new investments in north america, which means new jobs for america. back tothe dollar comes

u.s.o, we reduce the deficit because mexicans have a much higher propensity to consume u.s. goods than any other citizen in the world. for instance, china. -- ave 10 times as far as mexico is concerned, does it have to be a three-way negotiation over nafta or would mexico be willing to accept bilateral treaties separate from the u.s. and canada? ,> when you are talking trade and it was very well understood after visiting canada, i was toronto, we had a very good bilateral meeting. after that she posted in her tweets, nafta is a bilateral agreement that has to be renegotiated in bilateral terms. there are three countries in nafta and we should not risk

losing it. >> what does mexico want? >> my president was very clear to weeks ago when he gave us a mandate for this dialogue. there are too many things involved. this dialogue has to be internal. it is many things. scarlet: that was mexico's economy minister with michael mckee. time for the bloomberg business flash come a look at some of the business stories. ge's preparing to kick off the sale of its industrial solutions business next month according to people with knowledge of the matter also say what a formal process is not begun, the company has tapped advisers to help find a buyer. the sale of industrial solutions is part of a broader portfolio transportation -- transformation. proposedffett says the

hundred $43 billion that she fell apart because the company was not interested. berkshire hathaway and 3g capital abandoned the bid for you to lever because they were interested only in a mutually agreed tie up, not a hostile takeover. buffett says there is no plan in the pipeline and the could have been misunderstanding in it -- in the initial conversation. contract to buy existing homes in the u.s. unexpectedly fell last month and home sales were down to put a percent. affordability may have been a recent. an increase in mortgage rates and higher home prices may be discouraging potential buyers. that is your bloomberg business flash. scarlet: coming up next, deutsche bank has taken drastic action to reduce costs and employee bonuses. this is bloomberg. ♪

♪ scarlet: a very unhappy trading floor at deutsche bank. cutting bonuses by 80%. the previous year keep in mind the cut is bonus pool by 17%. this chart is thanks to our producer who created a custom index. what the bars do is track the conversation of global markets and investment bank business as toercent of -- it's fallen -- he has been cutting pay, suspending as is. making people concerned. he says is a short-term problem.

2017 the bank hopes to resume normal service for fiscal 2017 when it comes to bonuses. we will see if people stick around for that. deutsche bank needs to recover some of the legal expenses it has been shelling out, and it has an massive. billion in fines and legal fees. what a lot of people wanted to see yours ago, a culture that was not as much based on the massive bonus at the end. when you see that as a percentage of total cop, you wonder -- scarlet: four bankers it means times to go. joe: here is one of my favorite charts that might be of interest today. it is a chart, the blue line is share of sotheby's, the auction house that sells expensive stuff, and the white line is the msd i emerging markets index. i have indexed them identically going back to 2002 so that there is no y-axis shenanigans.

they really do move similarly all the time. they peek at the same time, bottom at the same time, peaked again, bottom again. now again today sucks is searching around 15% off of strong results. e twokes sense that th would trade together, they are the beta of the global economy, high risk, expensive come high dollar items. it is interesting the stoxx aligned so well. when you see the big surge in sotheby's, maybe it is a big sign for the broader emi world. scarlet: aussie dollar for instance -- joe: there are a lot of lines that all merge together. good sign today. scarlet: the market closes next. less than four minutes to go before the close. we are talking about record highs yet again, although it is a marginal advanced. the dow is up 12 points.

perhaps more impressive it is gaining for 12 straight day, the longest winning streak since 1987. this is bloomberg. ♪

♪ scarlet: we are moments away from the closing bell. stocks starting the week at

fresh records. the dow has its longest winning streak since 1987. i'm scarlet fu. joe: and i am joe weisenthal. if you are tuning in live on twitter want to welcome you to our closing bell coverage every weekday. scarlet: we begin with market minutes. u.s. stocks rising to record highs yet again for the dow and s&p. the dow is up for a 12 straight day, the longest streak since january 1987. if you look at the actual percentage move, it is up about 4%. we not talking about a steep advance. joe: that is what is really remarkable about this. day up, but it is so common for not huge moves. scarlet: and there is a rotation going on. if you look at the group movers, you can see the best performance energy, real estate,

financials. the worst performers, telecoms, utilities. this is a reversal of last week. performers were those names like staples and utilities. you are just seeing a return to what it was the previous week. i want to highlight steelmakers here. we're talking about u.s. deal -- steel. rebar futurester and shanghai surged. investors are betting there will be production curves ahead of a high level political gatherings a -- in beijing with will tighten the market for steel. to look at government bonds focusing on the two-year and 10 year. pretty interesting move higher. 10 year yields have been stuck in this range bouncing back and forth. 2.3%, looked like they would move lower, but we have strong data, more relief from

the eurozone and the fed statement today that convinced people that march is more in play. as you mentioned, now a coin flip for the march meeting for a hike. yields back on the rise higher. as you noted in the sector watch earlier, some of the utilities getting hit the hardest, and this explains why. scarlet: fed officials have been working very hard to get those numbers back up. the day did start off with the pound. sterling actually declined versus expanded currencies. what you see is the pound came back before carrying its losses again. down marginally, this after a local report that scotland is going for a second referendum. the first vote was defeated in 2014 by a narrow margin. in the endcan see, the pound not do very much on the day, even after the initial

headline. the euro gaining versus the dollar and the yen. economic confidence continuing to recover. we will have a chart for you on that later. joe has been paying close attention to this, the latest polls in france showing marine le pen is losing steam or the presidential vote in april. joe: a quick look at commodities. the big loser today, coffee plunging 31 point -- 315%. people -- 3.5%. importing coffee is the main contributor. anything else pretty flat. gold at the top down a little. fitting in with some of that selloff in the safe havens we were talking about. those are today's market minutes. not i want to take a deep dive into the bloomberg. you can find all of the following chart using the function at the bottom of your screen. the trump speech tomorrow, lots of focus on the various sectors that appeared to be sensitive to policy. i'm looking at the s&p 500

construction and engineering sub-index relative to the s&p itself. ,ou can see where the circle is the huge surge right after, everyone getting bundled up about that infrastructure spending the cap people so excited. construction and engineering stocks really outperforming in the immediate wake of the election. then they faded a little, february has not been a great month. back a little today on some of trump's talk. what this is definitely a ratio to watch. people do not work -- do not know what is going on with infrastructure. people are hearing more about taxes, obamacare replacement or repeal, but infrastructure spending seems way for out there. scarlet: it's like the third thing. joe: exactly. who knows where it is. it will be interesting to watch the stoxx after the speech tomorrow. scarlet: we know the president plans to repairing, repealing, d he wants to wor

use for the affordable care act. the yellow line is and some, -- is anthem. is up 10%. the white line, aetna up about 15%, as is united health. up some 30% since the election. a lot of promises from the president to do away with obamacare and to make things better for these health care insurers. joe: a real pickle because they are promising something better but what is that going to be? for more on president trump's meeting from governors and executives from u.s. health insurers, let's bring in exact tracer. -- zach tracer. this is difficult for republicans because they have campaigned on repeat -- replacing obamacare for years, but that would mean about people will lose of insurance. guest: about 20 million people

losing health insurance. that means they are really struggling to come up with a plan. we saw the governors in washington dc think we are not at agreement. republicans are also divided. there is a lot to state -- to shake out. scarlet: the president is still think obamacare is a disaster but there are parts he wants to preserve. has that shifted at all? guest: it has not. did staying other parents plan until 26, some sort of protection for sick people with pre-existing conditions, those other things that are very popular they do not want to get would've. .oe: -- want to get rid of joe: today donald trump said he would unveil something special come of those are his words, those are his words. be? would that isn't anything that will solve this problem for republicans of

repealing obamacare but not creating a headache for a lot of people? zachary: i think we are all excited to see what the president unveils tomorrow night. because it is going to be hard. first off, you will not get into a health scare in his speech. it is cap located. -- it is complicated. they might change the tax credit, might change medicaid. we do not know what they're going to do at this point. joe: from the perspective of the health insurers, what would be the ideal reform, will be the ideal accommodation of getting rid of things like the keeping what they do like? zachary: the health insurers have already much lost money on obamacare, pretty much all except for and some -- for a nthem. they need the market to stabilize. the need to know the rules. was a know the rules come of they can come up with a product to sell. this is a product that costs $2000 or $5,000. whatever they need to do, they can do it.

they have a lot of people figuring it out. if big problem for them is they do not know with the rules are, and that is what they are in right now. scarlet: the fact we are supposed to see these big mergers in the health insurer space has fallen apart. is the path forward for these companies as they try to figure out where they stand in the new regulatory environment, what can they do to make sure they can continue growing? zachary: growth is really tough to find health insurance. the population is growing slowly. but one bright spot for insurers is the elderly. a lot of baby boomers retiring, turning 65, and the private medicare program, really popular program among seniors, and pretty well-funded. insurers can make a decent return on the business. scarlet: good stuff. thank you so much. we will keep you posted on any further news there. we have breaking news. this is the drugmaker, they say

it will divest its quiet desk's royalty stream from to $2.85 billion. also giving an update on what this means for its financials as well, saying fiscal year the 17th adjusted eps will be $6.30. the consensus estimate was were more than seven dollars. that is having a big effect on the price of perio shares down -- perrigo shares. joe: we have breaking news. earnings out of priceline. they announced q4 adjusted eps of $14 and $.21. that solidly beats the estimate of $12.97. ahead of estimates. growth travel bookings up 26%. q1 adjusted eps expected to come to --m the dollar $.25

this is bloomberg. ♪

♪ u.s. stocks closing at record highs. the dow and s&p making another all-time high. not a big advance. the dow, this is the 12 straight day of gains, the longest streak since january of 1987. but we all know it happened later. joe: but history never repeats. it is really a remarkable streak. what makes this so interesting and unusual is each day's action does not feel like euphoria. scarlet: it is like a slow grind up. joe: a slow melt up in the

market rather than everyday off to the races. it out aif you check bloomberg what you will see is the dow is up around 4%. it is not exactly like we are off to the races, but nevertheless, investors really seeing the glass as half-full it comes to what the president is promising when it comes to reform. joe: there are all kinds of things out there which could theoretically put risks, whether it is stuff out of your, concerns about the u.s. administration. a right now none of it is having any impact. rigo coming out with a forecast for the full year that is lower than what analysts are looking for. it seized 2017 adjusted earnings -- the estiamate was for $7.10. that stock is tumbling. some changes at the top as well.

the cfo will be taking up that same push with another pharmaceutical company. look atther quick priceline which is trading higher after hours after the $14.21,eat on q4 eps, well above estimates of $12.97. revenue beating slightly, growth bookings up 26%. you see the stock of 1.2%. not know should really sometime take a look at the long-term of the priceline stock. it was $22 back in 2001. quite a move. they recently announced they will pay a dividend. the number three gold producer making the move after the price of the middle increased. bloomberg's danielle is standing by with the companies --

company's ceo in hollywood, florida. thank you very much. thank you for making time for us today. it has been a crazy day for minors. -- miners. one of the themes is replenishing the pipeline. hoping to do that through internal projects right now outside of africa. why not just buy something? >> we are replacing our production. tostly, one have to -- has bear in mind a number of companies not have the benefit of eight pipeline. -- ave secondly, this is the least risk and least expensive form of building a project pipeline. thirdly, we are doing entirely self funding rather than diluting our shoulders.

we have not issued any equity. we are among -- one of a few companies which is not diluted shareholders. >> you do operate in high risk jurisdictions. your growth prospects seem fairly modest. why would investors by were stock asbuy your opposed to someone else's? to get our projects based on project and country risk. at the end of the day we do not approve projects unless they have got after-tax u.s. dollar minimum returns and higher. >> it is interesting the focus on internal pipelines because we heard very similar comments from newmont and baruch. everyone is talking about how to makes more sense to develop internally. could this just be a response that it is actually really hard to find good new deposits? >> it is a combination of both. we asked why should investors by stock, we-- buy our have delivered on all our commitments.

you do not need to go out shopping. when you do not have a pipeline and you have to go shopping. >> your valuation is low. you could argue an international prior, were they to make a takeover bid, could get your some african assets were free. do you see yourself as a takeoff or -- takeover target? will affect our stroller -- shareholders is something we will look at. >> how would you respond if you were approached as a takeover target? >> we would look at what gives the best value for shareholders. >> i would imagine your ss would assets assets would look good. >> we have long life assets as well. >> you try to spin off your sub-african assets in 2014. it is clear they are holding you back. why not sell them or spin them off now, especially since debt

seems to be an issue? >> never say never. the 2014 experience has taught us a lot. we are now a much stronger company. we have relied on self-taught measures to do it. you never say never in terms of opportunities around any assets, south africa or otherwise. we look at what is in the best interest of shareholders and look at it in an unemotional and objective manner. >> it sounds a little as though you are saying the company, or parts of it could be for sale. >> i am not saying that. you asked me a hypothetical question. at the end of the day we are satisfied with her own project pipeline. we believe that keeps our production profile going between ounces over the next six years. ounces over the next six years. our balance sheets are in a very strong position. >> how big a threat to the south african operations -- is it something that would cause you to shelve any expansion project? >> it is not what used to be

several years ago. the advantage is it is quite volatile. ram forces you to tighten your belt. therein lies the opportunity. how much risk of naturalization or losing more equity to any of the black economic empowerment laws do see right now? >> at this stage it is difficult to comment. we got to see what the final charter says. but from our point of view, there were similar, is made when the original chapter was enacted. in our case the additional that's the addition -- initial deals-- >> we will leave it there. thank you. back to you in new york. scarlet: thank you. up, the first tech ico of the year prices this

week, but does the number support the evaluation? we talk about snap, next. as a bloomberg. ♪

♪ ♪ snap's roadshow is in full swing. it has investors divided on the company's future. maintaintend they can engagement while bears 20 twitter. let's bring in bloomberg's ipo reporter. also from san francisco. when it comes to successful ipo you could say do not do it facebook did and do a twittered it, but when it comes to a successful listing overall,

facebook's odyssey the better example. guest: no one wants a trading technology glitch like facebook. with twitter, the ipo seem to go off without a hitch. it sold all right, then traded well on the first day. as we saw the next year and a half was tenuous and then they fell off a cliff when they did not live up to the promises they were making on the roadshow to being a public company. joe: this is the biggest tech ipo in a long time. people are always complaining about the drought of the tech ipos. how important is it to the valley and the ecosystem out there that this one goes well and theoretically opens the door for more to come? guest: you're absolutely right. if snap goes over well and he will see a lot of healthy demand we get to the number of listings greatly increase. if it goes poorly, the companies on thise been relying abundance of private capital will continue to rely on it.

this really could open the floodgates as you say for other companies down the line. what i find interesting is that the ceo of snap has taken on this view that bigger is not necessarily better. our investors punishing him for that? are investors punishing him for that? are they giving him the benefit of the doubt? are saying the company does not have the global ambitions that twitter and facebook did. this might be a defensive strategy. in twitter said we want to add everyone in the world to twitter and then had very stagnant monthly active user growth, investors were like, why did you promise you could conquer the world? listen,ap is saying we're just focusing on the both markets, we do not really want to go into those other regions where there might be more people but they might be less lucrative. i do not think that people are

evan for it yet. from the people i spoke to come it seems like a smart way to frame the company so as to not disappoint people. grow itst snapchat revenue a lot even if it does not grow users a lot just by increasing the revenue for user? guest: that is what they are trying to pitch to investors. the talk about engagement, how much users are using a. that will be for them figure out new venues to make money. their revenue model is relatively young. they have only really been making meaningful amounts of money for the last two years. it on thek about roadshow, that is how they get to profitability. but the issue that the investors we have been speaking to have been saying is there is not clarity as to what those new monetization venues look like. you have the filters, the lenses, the video role in their stories, but you have not heard

a lot about discover, which is the content platform where people can publish or -- the magazine stuff. joe: we just showed some be role. our publishers happening -- some b-roll. publublishers have -- are ishers happy? guest: anyone who is anyone wants to be on it. whether it is part of their advertising budget, that is what we have heard for a letter decisions. the cannot snap in the landscape. -- think about snap in the landscape. facebook and google did a first. snap is basically having to steal at purchasing for those that from those platforms which they are already comfortable with and do not have to design specific ads four. -- ads for. it is a place where media companies have to find the next generation. forrtisers are also looking

that. snap is overall a shiny new platform they can play on to find audiences that are increasingly cutting off their cable subscriptions, increasingly not subscribing to print products. they are hoping to find a replacement in snap, but when you look at the numbers -- snap does not disclosed discover numbers. when we talk to advertisers they it,millions of people visit but what does that really mean? i think this is still an experimental platform for a lot of these big advertisers and media brands. joe: great stuff. alex and sara, thank you both. we will be watching the snap ipo it up next,his week present trump is set to address congress to the night in a primetime speech. we will talk about why trillions of dollars in the market could be on the line when he talks. this is bloomberg. ♪

>> danielle lange said toldtiffs in the case were by the u.s. justice department they will be filing documents to drop its opposition to the texas law. the federal appeals court last year told by the u.s. justice department they will be filing ruled last e law discriminated against minorities and ordered changes election.he november confidence in the euro area economy has risen to the highest level in six years. so far, rising support for ahead ofic parties several national elections has done little to hurt growth. the accounting firm pwc has apologized for that loops at the ox spurs -- oscars. by the time the mistake was

discovered, the "la la land" people were making their speeches. pwc is in charge of the envelopes and says it is investigating. global news 24 hours a day powered by more than 2600 journalists and analysts. i'm lisa parenti. this is bloomberg. scarlet: let's get a recap of today's market action on this monday afternoon. the dow and the s&p, climbing to new record highs, investors awaiting president trump speech that hopefully will provide more details on some of his policies. when you look at the dow's move, it's a marginal move, up 15 points. the dow has been grinding higher by about 4%. "what'd you miss?" for investors relying on more than a year of campaign promises

of a progrowth agenda to push stocks to record highs, the primetime speech couldn't come any sooner. david cote talks says the market will be listening. of a progrowth agenda to push david: markets want tax cuts. by the way, if we get it, the market goes much higher. if we don't get it, this stock market has a real headwind. this market believes this white house is going to deliver a tax cut. joe: herejoe: to discuss the market and political side of trump's speech is danny greenberg and alex wayne in d.c. danny, i want to start with you. market will be watching the speech tomorrow. what are they looking for? down to a few things, infrastructure, the tax plan, and deregulation. we got a taste of what he has to say about infrastructure.

he says he is delaying this until he can wrap his hands around obamacare. the markets don't seem upset by it. the equity markets still rallied today. it's been remarkable since trump's election. corporate earnings look good, but the pace and force with which we have accelerated, you would have to think that some of what is behind that is the progrowth agenda coming from donald trump. scarlet: let me bring you into the conversation. when it comes to the budget, what the president is proposing is to increase defense spending, not touch entitlement programs. how is this something the market likes given that we don't see a way to balance things out and for us not to go further into deficit spending? market>> i think the market isy counting on tax proposals to keep these record highs come in. with the commentator you

guys played earlier who said there were serious headwinds. presidents often are pretty vague in their state of the union speeches or fake state of the union speeches. it wouldn't be surprising to me if he goes into little detail about anything. we expect him to talk about obamacare in tomorrow night's speech. i don't know if there is much of an are -- of a market angle in that. i think baked into expectations now is the belief that obamacare is not going to get changed. joe: let's go into the bloomberg . one of the extraordinary things is the level of volatility, which is incredibly low. the fix, a popular measure of impliedone of the extraordinaryw the two-year average. could a speech like tomorrow night be the turning point? is it the kind of thing when you , could itese spikes

be an event that causes a risk repricing? >> equity traders are pretty optimistic at this point. the speech could act as a catalyst to wake people up from this complacency, but i think it will take a lot. it won't take a pause in the tax plan. we got that indication today, and it didn't affect volatility too much. we stayed below that 12 line in the vix. said the tax plan will come around august. if it indeed seems like it will be further out, that could bring an uptick of volatility into the market. people are expecting that, but equity traders are going in with a glass half-full attitude. they want to pick up on anything they can to encourage the view they have been trading into the market. joe: the last time trump gave a national speech was his inauguration, and people thought it was dark, that it didn't have

that uplifting vision. i guess they want to do something different, have it be more positive. could that get in the way of actual hard details? >> yes, that is absolutely right. usually, these types of speeches are meant to be unifying moments. it's his last chance at a big television audience for a while, unless there is some sort of national emergency. most presidents would treat this opportunity as a chance to unify the country or as many of them as you can get behind her agenda, and that usually means not going into too many details that will anger one side or the other. scarlet: maybe investors want a dystopian speech. that might be the case.

one chart you brought to us is that treasuries have been declining. talk us through what this shows us. it's a change from what the usual pattern is. >> what is it that bond traders usually say, that they are more smart than the equity one's? this is a three-month skew for the etf for 20-year treasuries and financials. scarlet: white line for treasuries, blue line for financials. >> the cost of hedging for further declines is falling for both, which is pretty remarkable. when you think of what financial stocks do versus yields, they are usually working in opposite. the treasury hedges has fallen into the negative, which assumes rates will fall from here. traders aren't paying for protection against greater declines. in other words, they think financials will go up from here. there is a strange disconnect going on between the equity and

the bond market. perhaps the bond market is more fixated on what the fed is going to do. that is moving them more than what trump will do. it's interesting to see these viewpoints. joe: fascinating contradiction there. thank you very much, dani burger wayne.x be sure to catch bloomberg's coverage of president trump's address to congress on tuesday at 9:00 p.m. scarlet: we have some breaking news on space. this is elon musk's company. the company was due to make an announcement. it says it has been approach to fly to private citizens, and it will send the dragon spacecraft beyond the moon. will send a privately-crewed private spacecraft beyond the moon. thising will begin later year. other flight teams have expressed interest, but this particular mission where it well the drug into the

international space station will take place this year. this is bloomberg. ♪ international space station will take place this year. this is bloomberg. ♪

>> investors eagerly awaiting details on president trump's economic agenda when he addresses congress tomorrow. one area they are focused on is a change to corporate tax structure. that would include a border adjustment tax. it has created a lot of uncertainty. he explainshy -- why he thinks such a tax would be positive. >> this is the most misunderstood tax proposal i've ever seen. people seem to think that it's

going to raise the prices to consumers. not true. that is going to lower profits of american businesses. not true. as you said, what it will really do is to raise about one dollars -- $1 trillion over 10 years, enough to make it possible to have the big corporate tax cuts that the administration and the congress are talking about. without the border tax adjustment, that would mean $1 trillion of additional national debt, and that would be a mistake. so it it's really important for congress and the administration to get together on this. >> as i understand what these economists from the new york fed had to say, there were at least two things. you have to take in the most inputs coming in from the outside are denominated in dollars, so there is no immediate adjustment to the price of those inputs coming in. insofar as there is an increase in price in the united states for some buddy using imports, the competitors would also increase and raise the price as

a practical matter. are they wrong? martin: i think they are wrong in thinking that there is not going to be an adjustment in the prices. even those who are currently pricing the product in dollars will, if they see the border tax toustment enacrtted, will want change those. otherwise they will be priced out of demand. we are going to see the kinds of adjustment that i and most economists expect. >> the issue is also retaliation. if you get the retaliation, you don't get the prolonged 20% rally in the dollar. martin: i think you do get that change in the value of the dollar. otherwise we are going to see, as a result of the border tax adjustment, we would see an effective increase in the tax on imports. but that's not what is being anticipated. it is not the purpose of the border tax adjustment. the purpose of the border tax adjustment is plain and simple to raise a lot of revenue.

that revenue does not come from american taxpayers. what it comes from is the fact that foreigners selling to the u.s., foreign companies selling to the u.s. will be getting dollars that have appreciated, and therefore they will be getting less in the way of euros or yen or chinese yuan. so, the foreign producers are the one who would bear this tax. >> that was martin feldstein speaking earlier today on bloomberg television. >> turning to the fed, it's going to be a busy week for bank officials. today, the dallas fed president says the fomc should not over read market expectations and reiterated his view that policymakers should integrate sooner rather than later. hear from will thatcher janet yellen when she delivers a speech on her economic outlook in chicago -- from fed chair janet yellen. bloomberg's economics

editor for global business. let's start with friday's speech. you have been focused in on this for a while. you think it's a big deal. what should we expect here? why is it important? >> is the chair's last -- it's the chair's last opportunity to shape opinion before the dark period, when they are not supposed to talk. we've heard on this show and others throughout the course of the day, there are fluctuations in how much people believe march really is live. she has an opportunity to recalibrate that, should she wish to. two key things. we get a job's report just a couple days before the fed meeting. it's a little bit late this month. we get another read on retail sales. we could see pce back up around 2%. a data dependent fed, those matter.

this is a catchall page for you to see any information related to the fed. we have a lot of speakers do o -- due out, not just janet yellen, but a whole parade of fed speakers coming up until then. rk thek at wo odds have gone past 50% for an increase in march. with all the fed speakers due to speak this week, is the o -- are the odds 50%? >> i don't think most of the speakers are focused on moving the market around. when capital says they need to know what's going on -- when they say they need to know what's going on, but not be dictated by, i think that's true. look, we can get hung up sometimes on this person is a voter, that person is not a voter. when they get in the room, what matters is the forecast and the recommendation brought to bear

from the fed. it's kind of like the curia, if the fed was the vatican. thenu let it go to june, you start to get into this situation with john williams -- as john williams described, where the math starts to box you in. i guess that's why people are kind of talking about may. but wait, no press conference. >> but if you go in march, which now seems like it's a coin flip, could that be perceived as sort of doubly hawkish? not only do you get the one hike, but you still have three press conference meetings to come. you could immediately get two out of three. it could open the door to four possibly. >> that would be one thing that would weigh on their minds. i guess that's why may has become a little bit trendy at the moment. signal in march, move in may. >> solves a lot of problems. scarlet: every meeting is a live meeting, not just a press conference. dan: last year you could look at

some of them and say -- this would be a pretty benign one. >> dan maas, executive editor -- dan moss. don't miss our half hour sitdown with a noble laureate. we will get his thoughts on president trump's remarks to congress. don't miss that on wednesday afternoon at 3:30 p.m. eastern time. >> a quick reminder that you can catch all of our interviews on bloomberg with the function tv. find breaking news charts and related functionality to the right. there are clickable links there. this is bloomberg. ♪

>> i'm scarlet fu. "what'd you miss?" the company says it will sell its royalty rights on the drug for $2.85 billion. the move means that they are caving in to demands from an activist investor who had called for changes. perrigo also says that it is optimizing its cost structure. it will be restructuring of it. working percent of its nonproduction workforce would be affected -- 14% of its nonproduction workforce would be affected. the company needs to delay its filing as a result of the divestiture of this royalty rights. in the end, it's adding up to an 11% drop in the stock price. >> let's turn to the french presidential election. taking a deep dive into the bloomberg. is of my favorite charts, it super simple.

it is the betting odds of the three main candidates in the french presidential election. last week around this time, they were all tied. macron, the centrist candidate, is on the rise. there are two really interesting things to watch in this chart. one is the centrist candidate on the rise. the french -- that's good for french bond yields. the other thing to notice is that almost all of his game is at the expense of -- his gain is at the expense of fillon, the conservative guy, not le pen, the nationalist. le pen is stable around 33%, 34%. all of the action is and who is going to be the candidate that faces her in the final round. the markets are really concerned about le pen or not le pen. it's looking more like macron. nothing much has changed in terms of le pen's perceived odds of winning, which are still around 1/3. scarlet: she will likely be able to move on from the first round of the election.

let's stay with europe and take a look at this other chart where economic sentiment has been rising for six straight months. that's the white line. economic competence in the eurozone now at the highest since 2011. it's been a pretty steady move higher, even with those couple dips throughout 2015. the blue line shows unemployment falling below 10% september and continuing to move south. this suggest the euro region economies are doing better than perhaps is realized. it is leading some like the germans to ramp up their rhetoric on how the ecb should think about tightening policy, whether it is tapering qe, looking for a possible rate hike in 2019. it would not be absurd. >> the flip side of all this is, even with the economy improving, all of these sort of antiestablishment parties are doing well. it should perhaps disturb people that even in economic -- an economic revitalization can't keep them at bay. coming up, what you need to know to gear up for tomorrow's

trading day. this is bloomberg. ♪

scarlet: "what'd you miss?" u.s. stocks rose to another record high for the dow and the s&p 500. all-time highs. the dow climbing for a 12th straight day. if you look at the actual move of the gains since the rally began, 4%. >> tiny gains every day, but they add up. scarlet: it feels like we are moving in place, running in place. the best performers today were the worst performers last week. worst performers today were the best performers last week. when it comes to what's coming up, tomorrow, starbucks' howard schultz will be sitting down with francine the plot for a wide-ranging interview. that is tuesday starting at 6:00 a.m. in london and throuhout the day on bloomberg television. >> and don't miss this, we will be getting u.s. gdp data. att comes out, q4 data, 8:30 a.m. eastern time. morgan hosting its

annual investor day in new york, presentations from the cfo, ceo, and other executive managers. that begins at 8:30 a.m. eastern time. we will bring you headlines throughout the day. >> don't miss this, president trump addressing a joint session of congress tomorrow at 9:00 p.m. eastern time. we will have full coverage of that. you can watch that speech live on bloomberg. scarlet: 6:00 in london, howard schultz. >that's all for "what'd you miss?" >> have a great evening. tib -- this is bloomberg. ♪

>> you are watching "bloomberg technology." let's start with a check of first word news. president trump promised to spend big on infrastructure projects. he also said he has come up with

a solution for replacing the affordable care act. the president will ask for a $54 billion boost in defense spending in his first budget. that is an almost 10% increase. george w. bush says the country needs answers about the extensive contact between president trump's team and the russian government. the former president defended the media's role in keeping with leaders in check during an interview on nbc's "today" show. he also expressed skepticism about his approach to immigration. wilbur ross is headed toward confirmation as secretary. the congress will vote at 7:00 this evening. easily cleared the senate commerce committee and a procedural vote by the full senate. multiple outlets citing reports say the deputy to al qaeda's leader may have been killed in a u.s. airstrike. the terror leader is a close associate of osama bin laden and linked to the