markets. ♪ shery: markets are closing in new york. black friday. optimism from brick-and-mortar at the start of the holiday shopping season. let's get a check of where we stand. abigail doolittle has the latest. abigail: as you mentioned we are looking at gains for the major averages. all higher, modest gains. nasdaq weeding by the most. for both the s&p 500 in the nasdaq, while they may be relatively small to moderate, we are looking at all-time highs. plus, record closing highs. the momentum we have seen continues. weekly gains, the first time in three weeks for both the dow in the s&p 500. we will dig into that in a moment.

let's look at what else you talked about, retail. it is black friday. the holiday shopping season for 2017 is officially off. reports are suggesting it is very strong. macy's, kohl's, gap seeing gains for all retailers. reports relative to yesterday, strong as of 5:00 p.m. yesterday. spending on a year-over-year basis of 17%. $1.52 billionght, has been spent ahead of black friday even starting. a very solid start for the holiday shopping season. some are saying the best in three years. now taking into the weekly moves, let's look at a chart in the bloomberg. 5917.are we are looking at the weekly moves to the major averages, and an orange the russell 2000. we had a long stretch of weekly gains for the dow and the s&p 500, eight in a row.

russell 2000, small-cap index and awards have been down a little bit. thinly actually have the major averages down on a weekly basis for two weeks in a row. the dow and s&p 500, the first time that happened since august. we have a tech heavy nasdaq up. higher.and the dow the russell 2000 really rebounding in a big way, of 1.75% -- up higher. 1.75%. may be a cal for investor mood relative to the possibility tax reform could happen. what is helping stocks this week, technology is the big sector that is boosting stocks outside of the russell 2000. we are looking at apple, amazon, facebook and output that. for amazon this could reflect the holiday shopping season. the iphone x could be a big winner for apple, but amazon has cyber monday. the best week since september 1.

lots of gain for big tech names. s helping to explain whyhery. trading day just ended. shery: talking about amazon, we're seeing jeff bezos' fortune top $100 billion for the first time. this on amazon's black friday gains. we are seeing amazon gained 2.6% of the session. the stock gained 58% already --s year, close to the bezos' fortune topping $100 billion on amazon's black friday gains. the function can show you jeff bezos know ahead of bill gates and warren buffett. and u.s. retailers are unusually optimistic going into this year's holiday shopping season.

the national retail federation predicts 69% of americans will shop at stores or online over the thanks giving weekend. get a talk about the outlook for retail and the state of u.s. market is marion montagne. she is with us from minneapolis. thank you for joining us. let's talk a little bit about this holiday shopping season, what are your forecasts? 4% to 5%i think a good growth in retail sales is on the horizon. the reason being we have strong employment. we have rising wages. we have rising consumer confidence. today the university of michigan upped the consumer confidence index the 98.5%. they adjusted it upwards and allowed -- a lot of that is based on expectations by individuals that their wages will be rising even more so in the coming months and years. kevin: i think most folks are really shifting into online retail.

what is the broader, longer-term trend? when you play it out for years to come, is it really all moving online? mariann: it is not moving all online. there are a number of factors that make people go out to the stores and buy something immediately. it might be limited quantity or some exclusivity. it might be a cold snap lori ward snap. we don't -- or a warm snap. we think there is still a lot of strength. particularly for the companies that have invested in the on the kohl's is one of those. shery: their earnings reports have not been great. their same stores sales rose a meager .1%. that includes adding up dedicated areas for amazon. they had more cooperation with amazon as well. how is the new ceo able to turn around kohl's?

mariann: first of all i think that report was better than expectations. secondarily, they did have a strong back-to-school selling season. that generally leads to a strong holiday season. we don't think the amazon play has really kicked in yet for the company, so we think it will drive traffic in the stores. in the meantime we will collect a 5.2% dividend yield on the stock. at least for the near term we think it is a buy. kevin: that dividend yield is interesting. let me ask you about consumer confidence. did does seem to be particularly high when you look at several indicators. what do you attribute that to? secondly, do you think it has the ability to last in the longer term? mariann: first of all i think a lot of it has to do with the filings for unemployment. they are really low at this point.

when people around you are fully employed you have more confidence. even as an employee, business is picking up at your place. may be they cuts are talking about hiring more people. to help wanted ads are way out. i think that drives wages. we have seen some of that the people are expecting wages to go further. cause consumer confidence and people to go out and spend. we talk about the holiday selling season but maybe it has already started. it might be two months to make the season right now. people shop early. the center they start shopping, the more they will end up spending. we like to see a strong pick up in early november, carrying all the way through and they are more likely to spend a lot more. shery: we've had some disasters, natural disasters, hurricanes. how will that affect how home related products do? mariann: to me a hurricane is

really a transfer of wealth from the insurance companies to the retailers, like home depot and lowe's. we like both of them. we think they have been doing well over the last couple of years as people started to reinvest in their homes. continue,at will along with a tailwind from the hurricanes probably through next year. these are dividend players. home depot has about a two point -- 2.4% yield. lowe's has about a 2% yield. we can see and earnings growth on top of that. we are seeing midteens returns and the next couple of months. kevin: we the media think is the storms at the short-term thing that the last much longer. i want to pick up on something you said earlier about perhaps the talk of tax cuts as a potential for that consumer confidence. what would happen if congress gets back and they don't past

this tax package? of devastating for that be to consumer confidence in your opinion? mariann: i think people know everything moves slow in washington. if it is not done by christmas, you might be done by the first of the year. if not then, probably in january. my christmas wish is that the offte polls that red pen the plan for the house of representatives and pushes it through and just gets it done. shery: when the corporate cuts come into effect? mariann: hopefully they are done in time for the first of the year so it would -- we would have a plan in place for january. for the whole year. we would know it the beginning of the year. shery: mariann montagne, a.d. for joining us -- thank you for joining us. kevin: coming up, president

trump is in need of a legislative win, and the senate is getting ready to vote to get him closer to that on tax reform. this is bloomberg. ♪

♪ shery: welcome back. this is "bloomberg markets." kevin: let's check in on the bloomberg first word news. taylor riggs has more. taylor: london transit authorities say oxford circus station has opened after a large-scale security alert cause the station to be evacuated after reported gunfire. altered circus and nearby bonded street have both reopened. police were called for reports

of shots fired in and around oxford circus station. people ran in panic and sheltered in stores. police have found no traces of suspects were casualties and no evidence of shots fired. onegypt, the president vows of the deadliest terror attacks in years when i go unpunished. at least 235 people were killed and militants stormed a mosque. the attack happened in the northern sinai peninsula. it has been the site of a number of attacks by local islamic state affiliates. opec and russia have agreed on a framework to extend oil production cuts. that's according to people involved in the conversation. the agreement is said to extend the cuts to the end of next year. the kremlin has been bulking get the need for an extension since the current deal does not expire until the end of march. an appealsrica, court has extended oscar pistorius'prison term to more than 13 years.

the runner was sentenced to six years for killing his girlfrien. the court of appeals said the lower court had no reason to give him leniency. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. shery: thank you. now the taxes. president trump's plan for a $1.4 trillion tax cut will be put to the test next week. senate republicans plan of floor vote on the bill as soon as thursday. passing tax reform would be a much needed win for the administration is still missing a signature piece of legislation in its first year. it is expected to be a dramatic moment of will come after a debate that could go all night. joining us to discuss his lower davidson, bloomberg's congressional tax reporter. bloomberg's congressional tax reporter. let's talk about the vote.

. laura: there are three thing still wrong with the bill. susan collins is expressing concerns that it is something that can take up to get the bill through. another is small business taxes, pass-through taxes. ron johnson is concerned about that. the problem is both these things require revenue, money. this could be to the tune of several hundred billion dollars. maybe that means they have to raise the corporate tax rate a percentage point of the 21% or 22%. ga.ple are calling it jen yet to make sure the whole tower does not fall. jeng: i did not wait any yesterday but never my see maybe i should havea. 8122. the effects of personal income tax rates and corporate tax rates have gotten closer together. when you talk about the potential for raising that corporate tax rate, i'm curious,

in your reporting when you talk to the folks on capitol hill, for that push away any republican senators? is there a line in the sand? the white house is saying we wanted it even lower than that, 20%. how serious a red line is that? laura: the general sense is you can push it up a point or two. paul ryan said we just wanted under the international average, which is about 22.5%. once you get to about 25% is when a lot of corporations say this is not worth it to us. you are keeping the rate of 25%, no thanks. we will continue with the current tax system. shery: markowski was the latest to come out. could that come through? could we see the obamacare individual mandate get eliminated? laura: we could. when murkowski, susan collins and john mccain voted against

it, if they were able to get the other senators on board and collins in the mccain -- and maybe mccain, and vice president pence, they can pass this. it is been smooth the past couple of weeks for republicans. we will see next week if there is some hangups or if that continues forward with smooth sailing. kevin: how much of a problem if they pass the tax reform through and it all goes according to plan, and when folks in the middle class philip tax returns come january, february of next year and they see their taxes have gone up despite increased savings and 401k's and the rate lowering, how big is that a problem for them? laura: that could be a very big problem. scorekeepershe tabulated this out. the vast majority will see tax cuts. really it is four or five years out where you see the tax rates

on individuals are going to decrease -- increased substantially. that is with the political problem is. this white house may not be there and it may be another problem for another day. shery: will growth pay for the tax cuts? laura: growth will pay for some of those. a very small percentage. we are at $1.5 trillion in tax cuts. maybe you get a couple hundred alien of growth. they're several estimates that talk about that. can certainly will not pay for itself. steve mnuchin suggested that was the case but the numbers are not adding up that way. where other republicans who care about the deficit? shery: where are the deficit hawks? kevin: where have they been? will they raise concern as the clock is ticking down, or is this something we will deal with in the spring with welfare entitlement reform?

laura: that is very possible that he kicked down the can. i think they will wait until the last possible second, was will probably be wednesday or thursday of this week to decide if they want to raise a big stink about this or not. you are running for reelection. they are free agents and can do with a willingness. kevin: free agents and the political jenga game continues. laura, thank you for being with us. president trump recently got an ominous signal from national security adviser mike lane's lawyers -- former national security visor mike flynn's lawyers. this is bloomberg. ♪

♪ this is "bloomberg markets."

a twist in special counsel robert mueller's russia investigation. michael flynn could be cooperating with his investigation into possible collusion between the trump campaign and russian officials. 's lawyers are said to have stopped sharing information with president trump's lawyers about the ongoing probe. what does this mean? is general flynn about the strike a deal with robert mueller? >> they are starting the process. this'll be the time you look at as a harbinger of the president's former national security advisor and one of his closest advisers on the campaign trail flipping on the president. and if he doesn't any damaging information about the president or the campaign or the white thee, this would be

opportunity for him to trade in some of the information for leniency regarding some of the allegedly crimes he may have committed over the course of the last couple of years when it comes to his ability to register as a foreign agent and some of the dealings he had while he was in the private sector, and potentially while he was on the trump campaign. it is not clear how much but he has he has taken the first steps of these going to do that, to make that happen. shery: how important is flynn in mueller's broader investigation? toluse: he's incredibly important. he was in the room for a number of meetings that have come under scrutiny, his discussions with the russian ambassador which ultimately got him fired. he has the information that has not yet come out into the public. he was at the president's side

throughout the campaign. he was on almost every trip, at the rallies, at the meetings. he was the sidemen in a number of these meetings. if there was any russian collusion, he might have more information than other officials who have come out so far. also, flynn had some relations with russian officials. he was pictured at the r.t. dinner over in moscow. he was at the same table with vladimir putin. a lot of people see him as a potential and road from the oad from thenra kremlin to the campaign. the only strike a deal if you going after a higher target. flynn is a high target within the campaign. if he is striking a deal with is goingcap's mueller after some of the highest profile people the trump administration. kevin: i was speaking with a source to suggested that really the opening round of the indictment was just to get people like general flynn, like

paul manafort, rick gates talking more about this. most of the charges brought against paul manafort were failing to disclose from previous financial international arrangements. look, you know this. these types of not disclosures, whether you're a republican or democrat, it has been going on. it was washington's 30 little secret as chuck grassley puts it. i want to ask you this. is anything really going to get done? is president trump taking action to prevent russia from infiltrating not just political institutions on the left and right, because they were doing it on the left also, but out in silicon valley, the private sector. you think president trump and his national security team, is he listening to them about better protecting the united states from russia interference going into the midterms and going into 2020? toluse: if you listen to the

president, he thinks this whole russia issue is a hoax. it has been overblown. he thinks it has become a political play by the democrats to make an excuse for why they lost. it would take a game changing event for the president to shift focus and really crackdown on making sure the russians don't get into our elections in 2018 and 2020. if the mueller investigation provides better details and more accounting for what exactly the russians did, you might see congress take a more leading role in making sure russia does not get involved in 2020. shery: thank you so much for joining us. coming up next week talk about black friday sales. this is bloomberg. ♪ is this a phone?

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single attack in egypt in eight years. at least 235 people were killed and militants stormed a mosque. that's according to egyptian tv. it happened in the northern sinai peninsula. the area has been the site of a number of attacks by local islamic state affiliates. egypt's president says the assault will not go unpunished. united states has condemned what it calls the horrific terrorist attack and offered condolences to the families of the victims. authorities say the oxford circus station has reopened after a large-scale security alert. transport london says oxford circus and bond street have both reopened. police said they were called after reports of shots fired in and around oxford circus station. people ran and panic and sheltered. in stores police say they have found no trace of any suspects or

casualties and no evidence shots of been fired. president trump spoke by phone to turkey's president. he described the call as productive. earlier the president tweeted they would be discussing, "ringing piece in the middle east -- bringing peace to the middle east." the u.s. navy has ended a search for three sailors missing in the crash of a transport plane. crashed southeast avoca now on wednesday. it was flying from japan to an aircraft carrier. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. kevin: thanks and happy black friday. stores in the west got a jump on black friday may opening thanksgiving day. chandraeo told him at the stores are on track for holiday sales. >> dipped been a strong start to

the fourth quarter. yesterday during black friday we saw that. well online and we opened our stores at 5:00. in the stores last night with a lot of our stores and its tracking quite well. kevin: as shoppers to send on stores retailers are experiencing something that is been in short supply lately, optimism. emma chandra joins us from macy's flagship in herald square. how are the crowds? what are you observing on this black friday? mma: black friday begin for macy's yesterday at 5:00 p.m.. people were lined up yesterday to get the doorbuster deals. they are telling us traffic is up and it is more people than they expected coming to stores. thes.are buying clo

has of 7:00 this morning they had sold 200,000 coats. they are expecting to sell about one million this weekend. they said they had confidence in the weekend because it is strong economic growth in the u.s., but also because of cold weather. they said they can drive people into stores to buy clothing. that is something that is slightly different from what we usually hear, that people are buying appliances and tech. comparable sales have declined for the last 11 quarters. what are the challenges the company is facing? emma: you are right. 11 quarters of same-store sales declining. that is something we spoke to the ceo about this morning. they are trying to reduce their footprint when it comes the stores. this at the are closing 100. . they have done some of those

they still have over 600 stores. earlier this year the cfo said if macy's was starting from scratch and opening now, around 245 stores would be the magic number for them. i asked if they had plans to close anymore. he said stores are still important and so is her e-commerce strategy. >> we announced we were closing 100 stores. we have closed 70. there may be properties will be closing, the we serve nationally in all communities as a national brand. logos on between the online business and bricks business is really important. emma: what you heard was him talking about their e-commerce strategy. one thing and retail is the growth momentum when it comes to online sales. that is something we know over the holidays is expected to grow. it is expected online sales will grow by about 18 to 20 -- 18% to

20%, where retail as a whole will grow by 3% or 4%. mariann said she believes rick and mortar. have an impact for quite some time. when you talk about amazon, these other tech companies and how they are influencing online sales, what is macy's doing to prepare for that? why would someone buy a coat in a store versus ordering online? emma: that's a question everyone, every traditional retailer is looking for the answer for. one of the things they are focused on his experience with in-store, bringing people within the store. people still want to talk to other people. in stores you can try on a coat and maybe get a coffee for taken some other form of entertainment. the reality is these online stores are going to continue to

grow. we saw that last year when it came to holiday sales. -- 38% ofk 30% of all all e-commerce sales. that is set to grow to over 40%. amazon's stock is been doing exceptionally well today on the reports of their black friday sales. that is led to jeff bezos' net worth to go over $100 billion. shery: huge for the first time. thank you for being out there for us. stay warm. and at chandra from macy's on 34th street. , retailer metrics president joining us from boston. thank you for talking to us. heavy discounting of a thing during the shopping season. will that affect the company's margins? ken: it will affect the company's margins. we track 108 publicly traded

retailers. in the last four quarters, over 50% have posted lowered year-over-year margins. it is extremely difficult out there. there is a ton of competition. it does not seem to be so far this holiday season as a deep drop off from last year. inventories are in better shape. maybe they can hold off on steep cuts. kevin: me ask you point blank, which retailers to you think have the best online strategy and are best positioned to capitalize on the online shopping industry? ken: that's a great question. it really is ahead scratcher. you look across the retail landscape in the pet years to really develop their online presence. you look at nordstrom's and macy's as two of the leaders. lululemon. there are not a lot of them that are clicking. walmart and the addition of

jet.com, but they have not really honed their skills and are able to compete with amazon on a consistent basis which is eating everybody's lunch right now. shery: department stores have taken a big hit. the valuation of department stores continuing to fall. will this holiday shopping season help them out? they have their valuations at least? ken: i don't think it will help department stores' valuations very much. going forward it is for traffic. would have seen some decent levels. surprisingly better than it would've expected given how weak things were last week. not be as much business done in stores between cyber monday and heading into the that's right before christmas. -- heading right before christmas.

the earnings in the retail space right now are really tough. fourth-quarter earnings projected up just 3.8%. the department stores are part of that being down roughly 5%. they are up against really easy comparisons. they were down 1.6% last year. it's a real easy comparisons and they are still having trouble generating the bottom line. kevin: down 5% already. i will be honest. i am more of a cyber monday kind of guy but it would ask you, how has tech actually influenced this year's holiday shopping? when you talk about things like the new iphone and driving people into the stores, are gadgets more likely to be stores?d in are they driving people into the brick as opposed to getting them online and what influence of a having? ken: that's a great question. i do think they are driving some traffic into the stores.

best buy is kind of last man standing with their helpful associates. they do a great job of providing background knowledge on a lot of these devices. we are seeing at walmart and target at well. however there is a fair amount of window shopping. i'm going back on amazon and purchasing some of these. best buy has done a great job being more price competitive with amazon. you mentioned the apple iphone. you talk about a potential price tag close to $1000. our concern is that will pull money away for mother retailers. shery: everybody is excited about black friday, cyber monday, including the. -- including me. how will they continue to decline? should we be concerned that consumer debt will get worse? ken: that's a big worry. savings of the declining over the last several months and consumer debt has been rising. wages having growing slowly.

we are not totally concerned yet but it is something to keep an eye on. the middle income consumer is still strapped. education, health care costs, food costs does not always leave a lot of money available for consumers. that is why we have seen such a big growth in the price space. doing stores, walmart better than most of the rest of the retail industry. kevin: ken perkins i totally agree with what you just said. lower and middle income consumers still shop, so important. folks in washington should hear that message loud and clear is that you're ready to cast their votes next week. ken perkins, retailer metrics president, thank you for coming on on this black friday. shery: retailers are gearing up for the shopping rush this holiday season. we are now highlighting an online retail etf that has returned 40% this year, beating traditional retail etf's that have been dragged down by

struggling brick-and-mortar stores. etf has justtail shy of 40 holdings, trucking companies that generate most of their sales online. yet traditional names like lands end, and amazon. paypal and ebay. three quarters of ibuys holdings are in the u.s. small and mid-cap names were equally weighted with the big boys, with restraints which gives ibuy twice the volatility as the s&p 500. they have eq related decent volume assets and now trade at a penny spread. kevin: you can hear everything about etf's each wednesday at 12:30 p.m. when scarlet fu and

eric bring you the latest news and trends in the industry. coming up, tesla has been plans in the works. can elon musk deliver on his latest promises? that is next. this is bloomberg. ♪

♪ kevin: this is "bloomberg markets." elon musk is never one to shy away from grandiose plans, but his latest pronouncements are no exception. add anlectric semi -- electric semi-that go hundreds

of miles on one charge, a car that will go from zero to 60 in 1.9 seconds. how will the company do all of that? i would like to bring in kevin tynan. how they actually going to do all this? kevin t.: it does not matter in 2020 or whatever. what matters is he generates a little bit of cash flow now and taking deposits on those products that don't exist. not only do they not exist, doesn't even have the capacity to make them yet. the idea is that is a little bit of a capital raise. i think those targets are far enough out there where currently they make sense on paper. maybe not synergistically they all work together, but by 2020 target advances in battery technology henry charging technology. he has given himself enough runway to say maybe we don't get all the way there really a close

enough and give us the deposits in the meantime. shery: talking about this chart, 2434, cash flow for tesla deep in the red. we have been talking about this for a long time. been months they have going through about $8,000 a minute. why are investors so banking on tesla? kevin t.: the idea is -- this is really the worst possible environment and the sense of model 3 which is supposed to be the affordable volume vehicle has not yet started to be delivered at any kind of grain volume, yet you are a key waiting on the production costs of getting there. you have a lot of money really going out, being burned, and you don't have a lot of model 3 product going up. plateauing in are terms of demand. they have got this production inflation happening when there

is no new product being delivered. kevin: the you think the model 3 a really kick into high gear next calendar year? preppingsla washington, d.c. as a regulatory structure for really how they are single-handedly changing the auto industry? kevin t.: that is really the question, are they really changing the industry? they are in the sense that they else, 76,000ng units last year. this is not a high-volume manufacturer. it is very much a boutique manufacturer at this point, but they are sort of motivating other manufacturers to get involved in the electric vehicle game. which is amazing because their volumes are so small, but i think they hit at the right time where you take somebody like volkswagen or the european manufacturers that were beholden to diesel technology.

those scandals we've been looking for a new technology and electrification makes sense. you have this great investment by traditional automakers trying to catch up on the technology. shery: everything elon musk says or does and tesla does seems to be about banking on the future progress of technology. it must be very challenging trying to electrify heavy-duty truck's, and at the same time make a profit. kevin t.: and those are two exclusive things. i'm not sure he can do both at the same time. i think a lot of what he puts out there in terms of everything from targets in terms of production and also capability in terms of vehicles is what we would call bench racing. on the bench you can say the numbers work together. in the real world it might be a different story, including getting production of model 3 up to the 5000 units per week that

was his target. that things -- can we make batteries? sure. ? will it do this? yes, it will. put the fit that into a roadster or way enough that w -- weigh enough, and the semi truck is a different -- right now the market doesn't hold him to those rules of physics. shery: we will see when it catches up to them. kevin, thank you for joining us. coming up, janet yellen will testify that sweet as her final term comes to a close. we will look at her achievements and challenges next. this is bloomberg. ♪

♪ shery: this is "bloomberg markets."

janet guillen will testify before the congressional joint economic committee in washington on wednesday. the confirmation hearings for her nominated successor jerome powell will also take place. he is not expected to encounter major hurdles. here is sarah mcgregor, team leader for u.s. economic policy. in the latest fomc minutes we saw a divided board because of tepid inflation. could powell change policy in any way? sarah: what i think we will see is this has been his first time before the senate committee. he might have more smooth sailing compared to another nominee that was on trump's shortlist. what i think we will see is powell trying to tell the line. -- toe the line a little bit. republicans really want to see the regulations rolled back, some of the financial era

tightening from the banks. democrats will want to see him get his backing for the cautious gradual interest rate hikes we saw under yellen. kevin: senator elizabeth warren is perhaps the most well-known lawmaker on the senate banking committee. the democrat from massachusetts. he typically uses these confirmation hearings as a way to make a point. what point do you think the potential for 2020 presidential candidate will make against mr. powell? sarah: i think people will want to see for powell stands. right now these are the luxury of the governor to stand behind andanke or yellen's views remain a moderate. they want to know if he is on the hawkish side or the dovish side? bully see more of the same that we saw under janet yellen? a longnomy is humming and things are going well.

another thing they may want to see is if and when it turns around, what will he do in response to a crisis? shery: yellen going out on top. she is testifying on wednesday. sarah: this is one of the regular congressional testimonies that a fed chair is supposed to do a couple of times a year. this is not something that is very unusual. i think yellen might use it to symmetric legacy, talk about the progress the economy has made, and you may want to offer views about what to do about stubborn, sluggish inflation. she is really -- we have not had many surprises from her. is now that she will give up the chairmanship, whether she will be able to be unburdened by that said speak and give us a more like the love that --blunt the of blunt view of that.

kevin: to you think this will be an opportunity for folks to get a contrast between these two people? sarah: i think powell will not want to show his hand, keeps a mystery. i don't think we would hear specifics. i don't think he will say we should rollback a, b, c regulations. i think he will try to keep a general and he will not want to -- you want to toe the line between the hawkish republicans and democrats. kevin: thank you to sarah mcgregor, team leader for the u.s. economic policy. ♪

♪ david: you are now both former presidents. mr. clinton: nobody plays a song when you walk into a room anymore. [laughter] mr. bush: i did not bring the coffee. [laughter] david: what do you say to each other? mr. bush: generally, when does this program start and when is i it going to end? regularly [laughter] and mr. clinton: he'll say to me, give shorter answers. david: what was the biggest surprise the first day you are in the oval office? mr. clinton: it really surprised me how easily i could be turned into a two-dimensional cartoon. mr. bush: in walks my dad, i said, "welcome, mr. president." and he said, "thank you, mr. president." >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed. i will leave it this way. alright.