into whether chairman nunes made unauthorized disclosures of information. he has been criticized by colleagues for sharing information with president trump before he showed it to the rest of the committee. the white house is pushing house republican leaders to make last-minute tweaks to their obamacare replacement bill before lawmakers leave washington for their two-week spring break. paul ryan says they are working on it as we speak. paul ryan: we have worked to get there. we have made progress this week. that is why we are here today. mark: it is unclear when the health care replacement bill would go to the house floor. welcomed wounded veterans and soldiers to the white house. he thanked them for their service and called the real heroes. he said you have earned your freedom with sweat and blood and sacrifice. today was a part of the annual

wounded warrior project soldier walked. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ scarlet: live from bloomberg world headquarters, i am scarlet fu. oliver: we are 30 minutes from the close of trading in the u.s. scarlet: u.s. stocks rising modestly today. joe: the question is, "what'd you miss?" scarlet: the world's largest economies meet for the first time. can president trump and president xi get what they want? the president from goldman sachs said he would back the idea of bringing back people. how this could transform wall street. called out, the minneapolis fed president said jamie dimon is

wrong. we will look at both sides of the argument. ♪ joe: let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. ongail: we have small gains the major averages heading into the close. the s&p 500 and dow a little higher. this does not tell the complete story. intraday volatility with stocks around even earlier in the morning, then 0.4%. the dow and nasdaq minutes ago, half an hour ago, briefly dipped lower, but the russell 2000, the small cash deposit, showed big volatility. it was mainly higher, the closing lower on the fomc minutes. it is now up higher, hanging onto its gains. intraday volatility does seem to be one of the themes for

investors. this is a chart for investors to show that volatility we saw earlier. and then around the time secretary of state tillerson talked, we saw this down, now it is up 0.1%. not surprising with the nasdaq, the tech is one of the weaker sectors, amazon and facebook trading lower. the biggest, energy. we have that for the best sector of the s&p 500, trading in sympathy with oil, up 1%, trading higher seven out of the last eight days on paper, and investors think the opec supply cuts are going to offset rising inventory from the u.s. there is positive momentum according to a bloomberg intelligence strategist around the idea that opec cuts could expend -- extend into the second half. volatility tends to breed volatility. we hop into the bloomberg and 6971, this is a

chart of the s&p 500 out of the election. we have a nice uptrend. we have the moving average in yellow, then the 20 day moving average in blue. the fed did raise rates back in march. the s&p iskness, below the 20 day moving average. isie stockton at be tig, who good in terms of technical calls , she believes we will see more of a near-term pullback with the s&p 500 down to the 50 day moving average, maybe even lower , 22.80. volatility seems to be the theme of recent days for the rental market. scarlet: thank you so much. president trump begins two days of meetings with chinese president xi jinping at mar-a-lago. he touched down 90 minutes ago.

on the agenda, trade and rising geopolitical tensions with north korea and china's other majors -- neighbors. we have a reporter joining us. he is the former treasury secretary for international affairs. u.s.'sas diagnosed the issues with china and won an election off of it. what do you think we can learn from the past three decades of how to influence china to get into play by the rules? -- it to play by the rules? way tomost effective engage the chinese is to work to bring them inside of rule-based imf, orbe that in wto, g-20. , theey embrace those norms type of behavior they manifest

has improved. what is important is the u.s. leader of that system. the united states in that system has disproportionate influence in helping set what the rules and norms are. but onnot been perfect, balance we have seen progress. trade, weing with know that the administration has not even fully staffed out the team that will negotiate this relationship and other negotiations in the future. this initial meeting between the two leaders of their countries, what are some plausible things that could come out of the discussion this early in the relationship, this preliminary? what could we see? nathan: at the 30,000 foot level, i believe this meeting is about town. -- tone? re chemistry between the

two leaders? what taylor -- stance does trump take? for it be accommodating, threatening, so forth? in that context, certainly there will be a discussion about china's trade balance and particularly its large trade surplus with the united states. the u.s. has an overall goods and services deficit of about $500 billion and more than $300 billion of that is vis-a-vis china. it is important for the chinese to open their economy to a greater extent. we have seen progress, but there is more work to be done. 7416, the u.s. trade deficit with china. so now the washington post talked about how the u.s. will be able to use the rule-based

system to get china to play by the rules. they said the white house has a strange focus on bilateral trade balances. this is not a great measure of because the u.s. has world reserve currency, china imports parts of a third country and then assembles it in china and sells it to someone else. does the u.s. risk discrediting itself with the trade balance as a metric by which to judge? that economick theory and the practice of economics, you need to think about trade relationships in many different dimensions. the trade balances are obviously one of them, but global imports, growth of exports, and the current account. by any metric, i think it is clear that china does need to take more steps to allow foreign competition inside the market, to open to foreign investors and

be more open to u.s. and other exports. nextyou anticipated my question, because we are talking about china playing by the rules and all of these things. what are specific things that china theoretically should change policy was to have it be sort of more in line with the global system? nathan: for me, and this is a thrust of the work i was doing with the u.s. treasury during the last years of the obama administration, the objective needs to be improving the business climate in china, particularly for foreign firms. that means improving the transparency of that system, improving the world -- rule of law, making it possible for u.s. investors to have an increased footprint. at present, u.s. investors cannot own holy outright firms

-- wholly outright firms in chinese industries. so make it more transparent. u.s.will also bring down exports. that is the number one challenge. the previous administration, we thrust out by pressing for bilateral treaties with china and made a fair amount of progress in negotiating that. one of the big decisions of the new administration is will they continue that? i hope they move forward on this investment trading. scarlet: what is the incentive for the trump administration do so? trump won an election threatening to call china a currency manipulator. nathan: the administration seems likely they are going to take a more, let me use the term, a more muscular or threatening

approach than previous administrations have taken. it is an open issue how president xi and other chinese leaders respond to that, so how effective that will be, that is an issue. more importantly, the threatening approach also threatens the rules-based system we talked about that is so important, not only for china but more broadly. joe: and from president xi's perspective, what would he like to get out of your -- out? think he sees enormous opportunities from the u.s. pulling back from the globalization, pulling back from a commitment in free trade, and china's rhetoric is moving into that space. president xi sees a great opportunity to further protect china's influence around the globe. nathan sheets, visiting fellow at the peterson institute

and former treasury undersecretary for international affairs. he will be sticking with us. we will talk about gary cohn's partisan report of reenacting this, and how it will impact wall street regulations. from new york, this is bloomberg. ♪

♪ miss?" at'd you change may be coming to wall street during a private meeting with gary cohn's, the goldman sachs executive, who president he supportsr's says the single act. still with us is nathan sheets, visiting fellow at the peterson institute for international economics and undersecretary for international affairs.

we are surprised by this, gary guy, said hestreet is into separating banks from investment banks, which trump himself said, keeping with the official administration policy. is this at all plausible? could it be done? nathan: as an analytical matter, it is tricky to figure out how to pick apart these large institutions, and the problem is, it is due if you break them up into commercial and investment, you are left with a commercial bank that has a deposit base to fund its self but it is not clear how these new investment banks would be created, how they would find. -- fund. there are enormous risks associated with that. there are real analytical questions as to whether this approach really would make the system safer. scarlet: but we have heard more

and more people, way to this type of thinking. donald trump said it during the campaign. john reid and sandy well have come out against the bank model. why do you think there is the re-think, this willingness to look at the alternative, among these industry titans? nathan: one reality is it is politics. another reality is we are in a time where it is appropriate that we assess the lessons of crisis, andinancial a whole lot of different ideas and approaches are being articulated. ways to make-- these institutions, a large institution, safer. i believe that increasing capital and liquidity requirements and improving the as it has regulation

been done over the last years is the approach to breaking up large institutions, which i really fear could lead to a less stable financial system. say thatcs might goldman sachs would benefit from something like this. they don't have a retail branch. they would be untouched, whereas a competitor like j.p. morgan would find themselves in a difficult position as it has a foot in both of those worlds. when you read be similar if they really wanted to pursue, go back to the old ways? nathan: i agree the standalone investment banks like goldman sachs and morgan stanley have already figured out some of the perplexing challenges of funding. if you had new institutions that were created as a result of splitting a distant one, they

would have to work through the funding relationships. i think that would be challenging and potentially disruptive and in that process, i think it is quite possible, likely, that goldman sachs and morgan stanley would pick up market share. scarlet: the former record undersecretary -- you were the former undersecretary until january 20. you were just in that position. if the that -- if we were to go through something like separating marshall banking from investment banking, what would make u.s. banks less competitive than european banks? nathan: i think it is important to keep in mind why we have these large institutions that do both commercial banking and investment banking. it was largely in response to the demands of clients, the demands of customers, that large corporates and other people

wanted partners in the financial space that could serve them over a range of functions. we certainly make our institutions, our financial system less competitive than it is today and reduce the competitiveness vis-a-vis the foreign competitors. joe: moving beyond this question of separating retail from investment banking, there has been a lot of enthusiasm since the election from wall street about rolling back obama era regulations with certain aspects of dodd-frank. you hear from jamie dimon in his letter we will talk more about 4:00 with a lot less regulation. we want smart regulation. what do you think the prospects for that are in terms of meaningful changes to the obama era regulatory legacy? nathan: so for the very reasons about, iust talking

think there is a continued commitment a must our political leaders to ensure the regulation of large institutions is rigorous and thorough. frankly, i think that where we landed in terms of capital requirements and liquidity requirements and regulation more broadly is a reasonable place, and what i would recommend, and which i think is most likely, is that we stay at this level of assessor a while, and we whether or not it is achieving the financial objectives that we have in mind for the system. fail a thing?g to nathan: on one hand, a lot of work has been done to address two big to fail. -- too big to fail. shifts and balance sheets, protocols, the progress has been

significant, but it is hard to say with any kind of confidence categorically it has been solved. we dwell no one -- we will not know until we see a large institution on the ropes whether we can deal with it. scarlet: if you look at how banks have performed, banks,cally investment 7562, that is pinned on a change hope to the regulatory regime. does that hinge on the fact that if we get change, deregulation, that will spur growth to get us to 4% gdp? is that reasonable? nathan: the numbers for the macro economy, 4% growth on a very, veryasis seems challenging. part of that reflects different demographics in the economy relative to 20, 30, 40 years ago.

part of that reflects we live through a time where productivity growth has been very subdued. this, we needl of to be reversed in a very significant and pronounced way. growth as very steady over the last six or seven years. and with the right policies, the only -- economy could do better than 2%? i hope so, i think so, but that thee like 2.5% given demographics and 4% same time. scarlet: nathan sheets will stick with us. institute for economic theory of we will talk about growth ahead of the big reports. cokeg up tomorrow, jerry is joining us. that comes at 9:30 a.m. new york

time. this is bloomberg. ♪

♪ scarlet: i am scarlet fu. let's take a look at valuations of u.s. equities versus everywhere else. this is a shout out to oliver renick, because i took the chart from him. he here they are overvalued. this is the ratio of the s&p 500 versus the rest of the world. we are combining developed markets and emerging markets. we have the all country world index. the s&p 500 is 11 more -- 11% more expensive than the rest of the world. been comments of investors saying it is time to look at europe, emerging markets , they are getting better. joe: there have been times where we have weighed more extreme, 2004, 2008, you would not have

thought that. scarlet: it is more gentle. joe: there are some sharp peaks. here is something a lot of people are saying is overvalued, speaking of overvalued. this is your over change of toronto home prices, and this is wild. in the last year, toronto home prices have surged 33% year-over-year, extraordinary. we have seen crazy moves. i don't want to say crazy. we have seen extreme moves in the megacities. it is now two standard deviations from its average going back to 9090. -- 1990. some people think it cannot last. scarlet: it is something that kennedy -- the canadian government is addressing. the market close is next on the first day. xi jinping and donald trump summit, the dow little changed. the s&p gaining zero point 2%,

the nasdaq inching higher by 10 points. from new york, this is bloomberg. ♪

♪ scarlet: we are moments away

from the closing bell. what'd you miss? stocks hold on to their modest gains as president trump meets with his chinese counterpart. i am scarlet fu. joe: i am joe weisenthal. if you are tuning in life on twitter, we want to welcome every weekday from 4:00 to 5:00 eastern. scarlet: we begin with our market minute. stocks closing modestly higher. another day of mental moves. joe -- incremental moves. yesterday, oh, the start of a turnaround, but here we are, quiet day. scarlet: everyone is focused on what is happening politically if you look at the s&p 500, telecoms the big loser. energy shares gaining .8%, with the bulk of those, the sub index higher, oil prices up as well.

financials gaining .6%. mixed day, with most groups higher. in terms of individual members, looking at comcast, the leader in the s&p 500 are not point basis. best day since january. it unveiled a wireless service that offers unlimited data on verizon's network for less than every other competitor. destinationss, 2009. one of the analysts we speak to regularly said that march comps were not as bad as to your good constellation brands hitting a record high, 17th percent gain last quarter. gave an annual forecast that topped analyst estimates. on the downside, advanced micro devices, lowest level in a month. , itrding to goldman sachs is price for perfection, and their analyst has it as a cell.

-- sell. joe: we see in the u.s. modest increases in rates. two-year yields up 1.24. the action today, czech republic. the big news this morning that the central bank of the czech republic has decided to depeg the currency -- actually from there was a floor and they removed it and that caused short-term rates to shoot up a bit. two-year yields are negative in the czech republic, as it is across much of europe get there was the swiss national bank thing a couple years ago. this wasn't anywhere near as exciting. telegraphedrly well and the volatility was fairly muted. scarlet: it is not exactly the safe haven of choice. terms of currencies, the dollar modestly higher come up .2%.

euro weakening at mario draghi's signal that he is in no rush to reduce stimulus. rand strengthening of it today, regaining some losses. jacob zuma recalled his finance, sparking a political crisis. alike,eat minds think because i'm also thinking of the garuda. the moves are down in the euro after the central bank ended the three have in your currency cap,. koruna best-performing currency. gold iss of ugliness -- gaining a little bit on the day. crude oil is up another 1%.

we might be back there very soon. scarlet: back in the high end of the range. joe: keep an eye on crude. scarlet: let's take a deep dive into the bloomberg. i started earlier by talking about emerging markets. let's talk about emerging markets once again. the white light is the emerging market index. put line is the open options. a big, deep move there, the best quarter in five years. bearishould that's -- bets at the highest level since october. that whole lot of signs commodities will rally higher, which the emerging market stocks are sensitive to. joe: maybe that is the wall of worry. scarlet: that is what i should have called it. joe: job report tomorrow and all

this about the hard data and software data, longtime debate. pretty good initial jobless claims coming in better than expected. i've shown 20t times on the show -- scarlet: such a good one. -- like ass swiss watch from a very reliable. how i like to smooth out the initial jobless times to adjust for seasonality. best level yet since the crisis. pretty impressive. let's stay on the job's theme. what'd you miss? tomorrow we will get march jobs data. climb,s are expected to with the stars first quarter for the u.s. for the labor market since 2012. is a visiting fellow at the peterson institute for economics and recently and undersecretary for international affairs at the u.s. treasury. also with us is michael mckee, economics and policy correspondent.

michael, phelps friday, best day ,f the week -- sorry, the month don't want to undersell it. of the numbers that will come out tomorrow, what is the key thing you will be watching? michael: for most people it will be wages. the fed is saying as we saw on the minutes this week that we are at full employment. an analyst at a good, and, that when you get to full employment, you can't get fuller, but it can get more expensive. are we starting to see wages pick up? i have a chart here, wages versus unemployment. as the unemployment rate goes down, for a long time wages were in just a trading range, and then it went up. you can see we are finally getting somewhere with wage gains. 2.7% is the forecast on year-over-year basis from which is close to the 3% defend would like to see regular -- the fed would like to see regularly. joe: this chart shows the gap

between unemployment continuing to decline and wages going up. nathan, from your perspective, you look at the economy. are we at full employment? 200kep knocking out these numbers. it seems like there might be a lot of room to keep adding lots of jobs. nathan: so i would say we are in the neighborhood of what economists were referred to as full employment. now, the unemployment rate can fall somewhat relative to the full employment rate. but as that happens, as mike said, you should see an exhilaration and wages. -- acceleration in wages. in fact, something of a puzzle that we have not seen wages react more vigorously for the last 12 to 18 months, as the unemployment rate has been below 5%. scarlet: is every data point as important as it was for the second rate hike in march?

going forward for the next rate hike, has the bargain raised? -- bar been raised? michael: it has changed a little bit. joe was saying the best in a month, and then the interview i had with dudley was on the 31st of march. you can still be right. the market has changed its focus -- joe: i wouldn't want to -- michael: not what the fed is going to do at the next meeting because nobody thinks they will raise rates in may. the market is focused on how many they do when because if they are going to start lowering the balance sheet, maybe that has a tightening of fact, and they could do fewer rate moves in 2018. that is where everybody is right now. scarlet: i want to bring in another angle here, because as we talk about the economy and how to move forward as a nation, jamie dimon, who served on the ceo roundtable, the chairman of that roundtable, he

wrote in his shareholder letter he released this week that "the american public has a right to demand that major bank sales and they as taxpayers don't have to pay for it, and the failure would and unduly harm the u.s. economy. in my view, these demands have been met. nathan -- oh, go ahead. joe: neel kashkari came out today and wrote a post disagreeing with jamie dimon. imon repeat of the points to various regular tory schemes that all of the same unrealistic feature -- in a crisis, bondholders will pay losses rather than taxpayers. the problem is it never actually work that way in real life." two parts to this question -- we will get to who is right. have you ever seen anything like this, either of you, said president or someone calling out the ceo's letter -- fed president or someone calling out a ceo's letter so directly like this?

nathan: i can't think of a precedent for it in recent history. certainly it is a key issue and a vigorous debate worth having, how far we have gone in addressing to date to fail. my sense is, as i said earlier, we have made progress, it i wouldn't want to spike the football in the end zone so to speak on this one. is neel kashkari in the minority on this one? how does the fomc feel about this? michael: i don't know how they feel about jamie dimon and his letter because we haven't spoken about that. but the general feeling is too big to fail has not been solved. and one of the reasons is what ithkari cites, that when comes time to make as a holder's, bondholders never do. who will make them give up -- even if you did turn holdings into liabilities, the next bank

they plea from. the fed and most people believe that you need more equity capital, which is the point kashkari is making. jamie dimon goes on to make a point that maybe we have too much capital requirements, but what that comes down to is how much capital you have -- not how much capital you have come up at how you pay for a great equity capital is a different way of getting the capital. you can do it through deposits, loans, or through equity. it doesn't mean you can't lend the money. joe: i know these regular three debates are very important -- regulatory debates are very important but i'm fascinated by the fact that neel kashkari tweets and writes this stuff. what do you think about this is the future or potential avenue for said medication-- fed communication, more blogging and tweeting and directly responding to ceo's like this? do you think we will see more of this? michael: i think it is

inevitable because that is the way people communicate and these days. ri a couple weeks ago wrote about the latest fed meeting and he got positive feedback on that. whether it is good all the time is another issue. you had the whole issue of jeff flacco -- you can go too far in tweets and say something you shouldn't have and in 140 is hard to do nuance and if you send the markets in a different direction, that is a problem, too. --rlet: think of what have speaking of what happened with jeff locher, do you think that distracts the federal reserve from what it needs to do? nathan: i think under these circumstances the fed keeps his eye on the ball. the dual mandate of achieving full employment, which we are getting close to, and keeping inflation of the neighborhood of 2%. andainly this development

is embarrassing for the federal reserve, and i think there will be soul-searching regarding what happened and how it could be handled more smoothly. and then also, communication of it. as michael said, communication come a long, long way the last 10 years, under ben bernanke and janet yellen. but there is still a goodly way to go before the person on main street for lenders fans why the fed -- fully understands why the fed does what it does, and the situation with lacker is another example of the need for better, clearer, disciplined communication from the federal reserve. thelet: nathan sheets of

peterson institute for international economic and former undersecretary for international affairs until genera 20, and michael mckee, thank you, gentlemen. tomorrow, gary cohn will be joining "bloomberg daybreak: america's" at 9:30 eastern time. from new york, this is bloomberg. ♪

senate democrats voted today to block neil gorsuch's supreme court nomination, a move that prompted the " nuclear option" rule change by republicans to put president trump's first nominee to the high court. the vote was short of the 60 needed to advance the nomination, with all but 4 democrats voting in opposition.

senate minority leader chuck schumer said there is a reason the vote to end the filibuster was nicknamed the nuclear option. senator schumer: it is the most extreme measure with the most extreme consequences, and while i am sure we will continue to debate what got us here, i know that in 20 or 30 or 40 years we will sadly point to today as a turning point in the history of the senate and supreme court. is expectedgorsuch to be confirmed on friday. president trump is reportedly considering military steps in retaliation to the deadly chemical attack in syria this week, according to cnn, which says that although a decision has not been made, the president is discussing possible steps with defense secretary james mattis. speaking to reporters aboard air force one en route to florida for talks with chinese president xi jinping, mr. trump said his syrian president bashar

al-assad, "he is running things, so some think should happen." the president added that attacks like this week's in syria "shouldn't be allowed to happen." dustin johnson has withdrawn from the masters, walking off the first tee a day after he injured his back in a freak fall. johnson never took the shot, apparently changing his mind at the last possible moment. after johnson returned to his rental home from a morning practice session yesterday, he went outside to move his car, wearing only his socks come and he slipped on a short staircase. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: what'd you miss? resident trump -- president trump begins two days of meetings with chinese president xi jinping at mar-a-lago. the two are expected to discuss north korea.

joining us is chief washington correspondent, on site florida, kevin cirilli. the president arrived later in florida then xi jinping. he did speak with reporters while on air force one. what did we learn? brieflyresident trump speaking with the traveling press aboard air force one and i want to review application -- there is no video. "we have been treated unfairly and made terrible deals with china, but that is one of the things we are going to be talking about." the other thing is going to be north korea, and somehow they will mix. both, trade about and north korea and many other things." he is signaling that trade and north korea at this two-day summit at mar-a-lago, which xi jinping and president trump are attending with their top officials respectively, are going to somehow late the foundation for a deal that

connects trade policy as well as foreign policy on north korea. ,oe: these are very open-ended big challenges, the trade relationships, security links with north korea. of time toot a lot come up with some grand new relationship with the countries. not even ae front, full slate of negotiators. what is a plausible win for trump like? what if he reasonably able to expect he can say he accomplished with his chinese counterpart? kevin: people i talk to in his political work. -- political orbit are hoping for no political hiccups. they are setting the parameters, saying that this is the first of what will be several meetings for these leaders over the next couple of years. the issue of trade, they

could potentially be talking about nuclear energy as well as auto industry, particularly trading imports and tariffs. president trump is being a company by commerce secretary wilbur ross as well as treasury secretary steve mnuchin, chief of staff reince priebus, strategist stephen bannon, and a national security adviser h.r. mcmaster. later this evening, president trump and president xi will be joined by their respective wives at a private dinner at mar-a-lago. no golfing but a little bit of wining and dining. scarlet: no golfing would be a contrast between president trump abe ofuld so -- shinzo japan. if you can compare and contrast this meeting with xi jinping and the meeting with abe, because japan being an historical rival with china, this is selling their keeping an eye on --

something they are keeping an eye on. give us the lay of the land with the two summits. kevin: that is a great point because there are differences not only with prime minister abe but other global leaders who have met with president trump at the white house. president xi is not going to the white house first and that was unnerving for folks in chinese political circles, but they recognize that as of now there is no joint press conference. these are private meetings at as shelley -- and essentially one of president trump's home, mar-a-lago. this is considered his winter white house. there could be a joint statement, but no sign of our press conference. kevin cirilli,f, chief washington. scarlet: washington correspondent live on the scene -- joe: live on the scene of this historic meeting. coming up, as we reach the first round of voting in the french

election, the anti-scotsman figures -- antiestablishment and we have improved look at one mechanism for the preparation. this is bloomberg. ♪

scarlet: i am scarlet fu. what'd you miss? you can find out charts using the function of the bottom of the screen. i want to focus on peasants and building on the euro. euro-yens the one-month risk reversal, the cost of one-month options against the yet related to contracts for selling. it is a gauge of market positioning and sentiment and it has been heading south. the far right, bearishness on the euro relative to the yen is the most extreme since right after the brexit vote, the middle yellow circle.

risktors are hedging the of marine le pen winning the french presidency can even though polls show that for the second round she probably not going to win it the greek credit crisis in may 2015. certainly more stress than that period but not as bad as brexit yet. joe: the polls still showing le pen very unlikely to win in the second down, yet nobody totally sure. i'm looking at a single stock chart from a company that makes fuel cells, kind of a clean energy technology. the stock surged this week. up 125 in the past month thanks to a deal with amazon, where amazon will buy the product and maybe invest in the company. it looks pretty good. let's blow the chart out a little bit. you can see there was a big surge in 2014, and this week it shot out. hardly registers at all.

that's in 2014, a lot of excitement about fuel cells and all that. one more perspective on the chart. scarlet: whoa. joe: if we go back to 2000 -- scarlet: nice. surge -- you can't even see it on this chart. it was so much enthusiasm for the technology back in the dot-com days. people thought it would change the world. it has been seeping out since then. on the: put on hds bloomberg there. joe: hds? scarlet: who is holding the stock? joe: blackrock, the big companies you would expect. scarlet: interesting. coming up, we would hear from former u.s. treasury secretary jack lew in his first interview since leaving treasury. his thoughts on the u.s.-china relationship as president trump hosts president xi in florida.

this is bloomberg. ♪

mark: i am mark crumpton. time for first word news. the un security council condemns north korea's latest ballistic missile launch and is ordering a halt. the statement released by the council today addresses concern at the north's "highly destabilizing behavior and flagrant and provocative defiance of the security council by conducting a large three weeks after the previous -- launch three weeks after the previous one." north korea will be on the agenda when president trump meets with xi jinping at his resort in mar-a-lago. mr. trump is promised to deliver

an ultimatum to president xi to rein in north korea. the president blames china for the loss of american jobs. house intelligence committee chairman devin nunes is recusing himself from the investigation into the 2016 election and russia. investigators are looking should --nes global news before hours a day powered by more than 2400 journalists in over 120 countries. i am mark crumpton. this is bloomberg. ♪ scarlet: today's market action, modest gains with the dell inching higher. -- dow inching higher. nasdaq rising as well, up 14 points. joe: after yesterday's big

reversal into negative territory, and balance each reductions, some have thought today could be the start of more selling. not yet. "what'd you miss?" as president trump hosts president xi jinping, we are diving into the u.s.-china relationship. a relationship that jack lew says requires particular attention. lew, who served as white house chief of staff and director of management and budget sat down for an exclusive interview with bloomberg. lew says the stakes are high going into these bilateral discussions. jacob: it is important to remember this is the first meeting between the two leaders. it is important that they develop a personal rapport. when they agree and when they disagree. there will be occasions for both. the chinese relationship is

going leave the most important in the world. the list of issues confronting these two leaders is extremely important in terms of economic well-being, and issues regarding the dprk. highnk the stakes are very where leaders establish that kind of relationship. the preparation that has gone on into these meetings in the past has been quite considerable. asre has in the past been, the expectation of clear deliverables results at the end. i suspect this is more of an initial meeting. there is a way to work together going forward. hopefully a bit of stepping back from the rhetoric. >> how damaging has that rhetoric than just rhetoric been? from what you know about how the chinese perceive the u.s., how damaging has it been? chinese think that the

are very aware of american politics. they are willing to look at is,oric for what rhetoric and actions for what actions are. this meeting will send a signal to what actions the united states will take. this covers a whole host of issues. there is room for some space between the two, and having a stronger relationship. fundamentally, our economic interests have to be protected. we did not pull back on criticizing china when they were wrong. we also knew when we needed their existence, it had to be from the perspective of, how do we event our two -- advanced our two national interests? you have to separate the two separately. >> something that came up on the campaign trail has come up less

-- the issue of currency manipulation. here you have china with a trade deficit. is that enough to declare china a currency manipulator? how cautiously should the treasury proceed? jacob: if you look at the general criteria considered part of the treasury's technical process, the key issue is -- are they taking actions to drive down the value of their currency to gain unfair advantage? you look at measures of intervening in order to devalue their currency. china has been intervening to prevent devaluation. that makes it challenging to look at the current situation and reach a conclusion that there is currency manipulation. clearly there is a transition a exchange rate to a more market-oriented exchange rate.

right now the interventions are in the opposite direction from what you look at in terms of measuring manipulation. >> you have a president very keen on implementing tax reforms. how much of that would fall on the treasury department? you have heard reports that offices are empty and nominees have not even been named. how can a treasury department go forward with tax reform? jacob: i think anyone that looks at the real strength institutionally of the treasury has to look beyond the political appointees to the civil servants. it is an extraordinary resource that i don't think congress could write tax law effectively without it, working through the tax reform process. the secretary has an enormous resource available. what you don't have are your

policy leaders, your emissaries that can necessarily represent you in a way you would if you had a full supplement of undersecretary -- full complement of undersecretary's. it would be a mistake to think debatets to the tax without substantial resources. the question with so many issues is where the decision-making willful, -- decision-making will fall, within the treasury and elsewhere, which camp in the white house will be making the recommendations that ultimately shape where the president goes. there are some big decisions ahead. we work on tax reform with republicans for many years. there is support to close the loopholes and lower rates.

if you want to do something bigger than the proposed 28%, it starts to get expensive. looking atgress ways to pay for a lower rate. that is very problematic in terms of policy and politics. the first question, how big is it? do they do it on a revenue neutral basis? or do they great a big hole in the deficitdo they do it on a re neutral -- i think you can get to a rate that provides real relief. if you are willing to take on the loopholes in a bipartisan way. we have seen this over the last few decades -- 1986, we could do

tax reform together because democrats and republicans insulated themselves from attacks. they were going out with jim baker, same we are off together. it made it hard for others to pick it apart. >> we have seen democrats in the senate deploy the nuclear option, facing a government shutdown at the end of this month. you begin your career as a staffer working for chuck o'neil. what would you say to somebody disillusioned that there seems to be so much gridlock in washington? what is your message to the person wondering if they can work effectively in government. i think it is usually important to our democracy we can answer this. if you look at history over the last 40 years, the pendulum has

gone back and forth. you have moments of partisan conflict. it usually does not end well. then you have working together. we need to work together before there is damage. there is a debt limit deadline coming up in a few months. the american people do not want to see chaos and shut down. if you want to work on a bipartisan basis, you have to do it from the middle, not the extremes. was a bloomberg exclusive interview with former treasury secretary jack lew. scarlet: a recent crowdsourcing feature is getting the buy-in from major investors like steve: cohen. from new york, this is bloomberg. ♪

scarlet: "what'd you miss?" steve cohen is investing in a startup that use computerized trading strategies that is from thousands of users. only some of them are awarded assets. let's bring in a market reporter danny bloomberg -- tell us how steve cohen has invested. >> one is through .72's venture capital unit. they participated in 2 funding rounds. this will help them build their trading platform. the most recent round was $25 million. this other pile of money totals $250 million. tois is just for quantopian invest with. this goes at 10% of the funds

using that to 50 million, going to authors of the algorithm. she has put this aside, saying whenever you are ready, slowly integrate this into the strategy. they are trading the 15 strategies built from those crowd sourced algorithms. to 3 one has one million million behind it. only a fraction of that to $50 million is being used. joe: we just showed that chart. there are more than 100,000 numbers on quantopian. can anyone just go on their, and if they haveand some algorithm knowledge, start writing something? dani: it is free. if you guys decided to write an algorithm, steve cohen might be putting money behind you. it is only u.s. equities and etf's right now. they are rolling out futures capabilities as well. they like to boast that they

have people from every continent using this. it is a rolling contest. every time you hit the top of their board per month, you might get a small price from them. they will take those algorithms and put them through a vigorous evaluation. if you pass that, you can put onto their platform to have your algorithm used. they will launch a co-mingled fund to let investors anywhere invest in their algorithms. scarlet: it seems that the algorithms themselves are tested and evaluated. what about the people writing them? it sounds like these are freelancers for coding. is there any due diligence done on these guys? dani: quantopian is leaving the i.p. with these funders. if you are a hedge fund manager and someone writes yuan of rhythm, you want to know that --

rights you a algorithm, you want to know that it works. they are relying on trade data and how it performs. essentially after the algorithm has gone through these hoops, they will do a background check and skype interview. joe: let's say that i write a very brilliant algorithm -- dani: you are getting busy tonight. [laughter] joe: how do i money? let's say that i crush it. how do i cash in on it? dani: how much money going into the algorithm depends on how much capacity it has. if you are trading on small caps , they can't put a lot of money behind it. let's say that it gets a pull from that to $50 million pot from steve cohen. depending on how the outgroup performs, he would get 10% of the return.

scarlet: we are trying to show assets under management. the quantopian strategy is gaining a lot of steam. betweenthe difference traditional assets and these new startups? dani: to preface this, this turns into a huge semantics thing. to really differentiate, there is a difference between factors, which is size, momentum, value -- these classic things, if you took a warren buffett, he is essentially investing in value. these --quantopian -- they are looking at a bunch of other things and trying to find trading strategies. joe: fascinating story. everyone should check it out on the bloomberg or bloomberg.com. i am going to go sign up. [laughter]

thank you very much. up next, we will hear from the ceo of the latin american e-commerce giant on how he is competing against amazon. this is bloomberg. ♪

joe: "what'd you miss?" the world economic forum in latin america is underway in buenos aires. some of the world's biggest companies are in attendance. one is the ceo of the e-commerce giant mercado libre. we had a chance to sit down with and talk about his business model. kind of like alibaba because we don't have a first party inventory.

it is social like ebay in that we are at very much fixed prices. it is not so much new stuff and auctions. it is a marketplace part of amazon. >> because you represent third-party sellers, you prefer the metric for volume as merchandising. amazon wants to expand south of the border. are you running into them more and more? marcos: they want to expand everywhere. [laughter] yes we are. >> what is your strategy for protecting market share? marcos: the same strategy, focusing on our users, doing the deliver a lotan, of inventory at great prices and great service, and the rest will take care of itself. >> i am sure jeff bezos will say he is trying to do the same thing. marcos: maybe. [laughter] >> what are your strategic priorities? marcos: we believe we have

created a very large platform in latin america. million --e had $28 28 million buyers. it is very synergistic with our business. we have started to experiment providing finance to our merchants in argentina and brazil. we are doing very well. it is a huge opportunity providing financing. we are also very focused on fulfillment and logistics. the faster people get their stuff, the more they buy. >> how big is your credit business now? marcos: it is still small, but i think it will be sizable. we started 10 months ago. last year we did $10 billion of gross merchandise volume. we are growing very fast. the opportunity is very big. >> could even expand into the united states, especially using

the network you have built among the americans? marcos: we see so much opportunity among the region, not only in growing e-commerce -- in the u.s. it is closer to 20% of retail. growing financing, we have the largest digital finance platform. to online.-line there is a lot of value in being the leader. we want to focus in latin america and maintain leadership in the region. >> your company has grown at a furious pace. 42% in the last quarter. $250 million. some call it the law of large numbers. as you grow lorimer -- as you grow larger, does your growth rate necessarily have to slow? marcos: they are not that large

against what is happening in the region. we have been a public company for 10 years. we have never grown faster. the entries where we are going faster are brazil and mexico, which are our largest markets. we will go a long way before we reach that lull. >> what about margins? are you a believer that investing in growth and expanding and deepening your network is what matters most, margins be damned? marcos: i believe in the moment where we are, it doesn't make sense to optimize profit. we are just starting, and we are trying to build a company that will be the best brand in the next 100 years in latin america. it would be a huge mistake to try and optimize profits at this stage. it is so early, and there is so much opportunity, we don't want

to focus on margins. we have always been profitable. it gives us independence. somebody says, your margin is my opportunity, i don't want to give anyone a big opportunity. companies should have something better to do with their capital. marcos: historically it has been 25% of net income. we have hundreds of dollars of cash in the bank. it is not that we need that cash. it is a philosophical question. publica line in companies where the founder is not the majority owner. marcos galperin, ceo of mercadolibre. scarlet: coming up, what you need to know to gear up for tomorrow's trading day.

this is bloomberg. ♪

scarlet: "what'd you miss?" but. stocks paring gains, managed to finish higher. perhaps caution against president xi jinping's visits. don't miss this, president trump and president xi jinping have dinner at mar-a-lago. it will be uncorrectable

--ncrypted president trump present trump versus president xi. joe: i will be looking at march fx reserves. we have not talked about that in a while. that story has calmed down a bit. scarlet: don't miss this, the best day of the month, u.s. jobs report coming out at 8:30 eastern time. joe: we are expecting a confirmation vote on neil gorsuch to be the next supreme court justice. scarlet: that does it for "what'd you miss?" joe: have a great evening. this is bloomberg. ♪ attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. it answers questions like... how a reverse mortgage works,

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talk to vladimir putin about the situation. trump made the comments today a barred -- aboard air force one but did not discuss the u.s. response. high-stakes summit today with chinese president xi jinping. the threat of north korea's nuclear ambitions and tensions over trader on the agenda for the first in person meeting between the two leaders of the two largest economies. the nuclear option in the senate, unilaterally rewriting chamber roles to allow neil gorsuch to ascend to the supreme court. democrats serious that their efforts to block did not work. devin nunes a recusing himself from the investigation into russia in the 20's -- 2016 election. they are looking into whether he made unauthorized disclosures of information. legendary actor and comedian