a america first speech. the greenback has its lowest level since 2014. the u.s. economy is expected hit 3% in the fourth quarter. tammy tax cuts keep growth growing? david: i am delighted to be here with alix steel. welcome back. this is where we stack up. we are grounding out higher. we are seeing the best start to 1997.p since the euro dollar is up by .3%. that is a 2014 high. the yield is grinding higher. level for mr. dunlop. david: i can't believe that's when you graduated from high school. nicely done.

it's time you for your morning reef. president trump will address the world economic forum in davos. we will bring you that live. we get growth numbers for the fourth quarter. we will find out how much the u.s. durable goods has done. right now, let's get an update outside the business world. good morning. >> president trump wanted to fire special counsel robert mueller. among hisd concerns top aides and closest supporters that he would be putting himself in legal jeopardy. the new york times said he backed off after white house counsel refused to order and threatened to quit. calls it fake news. the president will offer a path to citizenship for 1.8 million undocumented immigrants rot here as children. a return, the president once

toy $5 billion trust fund to pay for the border wall. he would restrict family immigration and and the lottery system. the british economy and a challenging year with a pickup in growth. gdp rose better than expected. 2018, the all of economy grew just 1.8%. that's the worst performance in five years. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. alix: trump does davos. bank ceos love him, george soros not so much. cut ties to undo the nations selloff. is it a three-putt? you said three p. thanks for giving me

credit. join us is the chief. bloomberg has been a davos all week. the president will talk this morning. streetxecutive from wall has praised the president about what he's done on tax reform. we did find a different view. that is george soros. >> i consider the trump administration a danger to the world. as a temporary phenomenon. it will disappear in 2020 or even sooner. david: from what we've seen so far, what audience will be greeting president trump? >> it will be the latter. george soros is a major democratic fundraiser. he's never been shy about expressing his views.

the tenor of once happening in davos is bring it on, we love what you are doing. he's going to get a receptive audience. is he going to go on to trade? i'm not sure jamie dimon would be as excited about that. >> there are people who claim that at its core, he is a globalist. trumpet histo accomplishments, tax cuts, the stock market. he's going to say what good for america is good for you and people are going to eat it up. >> i think along the lines of he took a photo of trump. that's telling. there has been a more positive reception than what people were expecting. there were concerns and we may see people walk out of the speech.

i do think generally the reception has been more positive. david: he's going to have to fly back to washington. he's got bob mueller waiting for him. he tried to fire mueller at one point and stepped back because his white house counsel threatened to quit. marty: the newer times broke that story. it was matched quickly by the washington post, politico, bloomberg got clear confirmation. this is a problem for him. it plays back into the narrative is trying to obstruct justice. alix: what tapping with the dollar? this is a five day chart. you can see the mnuchin impact. he liked the weak dollar. it was good for exports.

brooke, if we are in a currency war situation, who wins that? draghi you saw the comments, they had this agreement we are not going to have a competitive devaluation of currency. that's why it was so jarring to see these comments. you can't fight where the fundamentals growing. money is pouring into europe and japan, where the economies are more attractive than the u.s. alix: how do you attract foreign capital? weaker dollar. marty: it doesn't work. donald trump later on cnbc was pretty clear that he thinks the at itsshould be fundamental level based on what the strength of the economy is. he said he doesn't want to talk about it and shouldn't talk about it, which is the standard line you should take.

david: he is so aggressive on ,rade and balance of payments he is linking the dollar to trade issues. we can fix this trade thing in other way. marty: i don't think it's a particularly well thought out strategy. i think it's just the reactive comment by mnuchin. i think donald trump tried to walk that back. the world leaders are correct. shouldre countries that prevent this from happening. the other thing we are looking at is data at 830 a.m. this is the atlanta gdp. it's a little retroactive. that's what is tracking for the fourth quarter. i find interesting is that scared toward exports. i'm curious about the scenario.

brooke: the weaker dollar would help u.s. exports. interesting to me is we've had industrial companies posting earnings. they are very optimistic. they are looking multinational eat for growth. 3m had solid growth in all of its geographic areas. they are optimistic on tax reform and where the economy is going. david: i think we are wrapping up expectations on gdp. saying .9%. fink marty: i think that's possible. donald trump is supposed to start at 8:00. we hear it's only a 15 minute speech. he will be gone by the time the number comes out. did i make that up? marty: i hadn't heard that. i believe it. those are china like numbers.

what are we expecting? , whichsts are saying 3% would be to quarters in a row. brooke: what is the benefit from tax cuts? does it rev up the economy? does it boost gdp? i think we've got to see how that plays out. ceos are optimistic. it's been straight guidance across the board. that's extremely unusual. david: thank you so much. coming up, we're going to talk more about the dollar. the greenback has its worst start of the year since 1987. we will speak to the jpmorgan assets manager next. this is bloomberg. ♪

>> this is bloomberg daybreak. dell technology is considering to go public again. they are to people, weighing options to boost funds, and raise including an ipo. they went private in 2013. the u.s. slowdown of starbuck has gone global. supportingeported to sales growth in all major regions. off estimates.

they fell in europe and africa. fourth-quarterd sales the rose 6% thanks to the demand for warehouse automation. it was better than expected. they make of right approach from jet engines to commercial security systems. that your bloomberg is this flash. alix: it's been a tumultuous week for the dollar. on wednesday, secretary mnuchin said a weaker dollar was good for us as it relates to trade an opportunity. this not a concern at all. then in an interview yesterday, mr. trump said he may have been misunderstood it. again becoming so strong that the dollar is going to get and i want to see a strong dollar. the dollar index is not paying much attention. it broke below 90.

he comes to us today from brussels. it's good to see you. vincent: good morning. alix: are we seeing the u.s. dollar being a of trade policy? vincent: you see the saynistration tried to there is no need to get it done actively. to theweaknesses related rate. be pretty wellar over the last couple of years due to the fact that it was interesting from investors to consider the u.s. yield curve. today, hedging costs are very high as you know. short weakness in the dollar. i would blame the hedging costs

more than what the administration has said it. alix: we did see volatility pick up across the fx market. we did see the s&p, as well. to we expect more fx going forward? could that lead to in equities? vincent: more fx volatility seems clear. u.s.is abuse for the i am convinced it's a positive thing to have the dollar and the tailwind. this is different or the u.s. economy. it's deftly positive for u.s. profits. 4s in europe, we need to look at hedging.

david: when we look at the strength, what should we be looking at? is it trade? is it purchasing? what should we look at? based on trade weighted, it's not that low historically. vincent: on the long-term, i've been a big believer in being level. that is overvalued. it is long-term. it is of more importance in the short term. definitely, the dollar on the long-term should we can. we look at the capital market isumption that the dollar expensive versus the level. even more so, the growth differential between the u.s.

and other countries in the world like europe. in otheris clearly regions like europe. there is definitely more ground to gain in europe and more flows converging to the region at the moment. there is some weakness to the dollar. david: you expect further volatility in fx. for investors in europe and the united states, should they be hedging right now? vincent: when looking at the dollar on the year basis, we are expecting a weaker dollar by the end of the year. the dollar might be oversold. it is still forget a huge interest-rate differential between the u.s. and europe. at it never been

so wide. in theory, it's always been a support for the currency with a high level of interest rate. coming into the last days, there is pressure on the dollar. we could see that in the short term. orwill probably have an ecb doj start likely to be more hawkish. more supportovide to currencies like the euro in the end. alix: if you're looking at a dollar that is too expensive, what equity market do you want to buy for? we see new emerging markets. vincent: that is the sweet spot at the moment. not only because of the dollar weakness but the underlying strength. we see that emerging markets are growing again, showing growth

versus d block markets. i have made several adjustments in terms of correcting the imbalances. these were in focus back in 2013. emerging markets have increased interest rates to quote -- cope with the weakness of the currency. there is still room to accommodate. , we we look at inflation in emergingflation markets in anticipation of increases in the coming months. if there is a region where we can use the term goldilocks, it is emerging markets. have several countries with em assets. we have seen significant flows from emerging markets, which was

in debt last year. we are continuing as we enter 2018. alix: great stuff. thank you very much. it's good to see you. coming up, tell technology is considering going public again. we will have the details next. this is bloomberg. ♪

david: michael dell is considering it going public again and raising cash to pay down debt. with us is kyle quarter. explain to us what advantage do they have? them a mechanism to pay down that massive debt. in 2017.a python

they have $46 billion in debt. $2 interest rates are billion. the deductibility of interest, these transactions mean the cost is going up. david: they went public, this is one of the alternatives. how much of that that can they turn down? : they made an offer of $13 billion last year. alix: we were talking about debt. ,f we look at the bloomberg this shows the debt distribution. 2021 was the time when it really hurts. nonetheless, it is significant for them. do you think investors want to buy the ipo? it's going to buy this giant chunk of debt.

tile: it's one of the options being considered. creates and updates the company. it could give them some breathing room. given is getting killed. david: what does this do for michael dell? he needed the flexibility when you don't have to have public reports to shareholders. could he have done the deal if he had been public of the time? kyl: it would've been extremely difficult for him to do the deal. deals i've done as many as i need to i have the consolidation i want. i can go public again against the money. kyle: we think there are other options. that.they could buy

that could help the issue. kyle: it gives you much more cash flow. not bringing the settlement to the market. david: when it michael came back, he had a grand strategy of where he was going. is it working? do we have a sense of its playing out the way he hoped? kyle: this is still a profitable company. they are doubling down on servers. it hasn't come through to the extent they would of liked. you've got the cost. david: instead of going public, just sell stuff. is or something they could sell? kyle: they say it could be worth $7 billion. there is sin that could be

pushed out as well. we have a huge pc business. idea. i have no this is a grand vision. alix: now it's an issue. i wonder if he regrets it. he remains. alix: thank you very much. kyle porter is joining us. coming up, nafta negotiations in a crucial phase. we are going to speak to antonio garza. next. this is bloomberg. ♪

alix: we have a rally in the futures market. european stocks are inching higher.

the dax is relatively flat. this is the why. you see the yield up by one basis point. it's a selloff here in the u.s.. let's take a look with happening in the bond market. 264 on the 10 year. we have breached that to 63 level he always watches. it is a broader, weaker dollar story. that's been the theme of the year, and it continues. also sterling is getting a nice boost after the gdp came in at better than estimated. curtis feeling good about the dollar weakness. let's get headlines outside the business world. >> in the next hour, president trump speaks of the world economic forum. he will tell the global elite that his agenda will be good not just for the u.s., but for the world. he will call on the

international community to work together. there is a report that president trump back down after ordering his staff to fire robert mueller. according to people familiar with the matter, his top aides are concerned that such an action would put them in legal jeopardy. the new york times said he backed off after the white house counsel refused the order and threatened to quit. the president calls it fake news. a fire in the hospital has killed 37 people in south korea. the fire again in the emergency room and spread to the upper floors. the cause is not known. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. alix: thank you so much. negotiators for the u.s., canada, and mexico continue talks in montreal. the fate of the trade pact is up

in the air. we are joined by michael mckee. he joins us from montreal. what do you hear on the ground? mike: good morning from an icy cold montreal. people are hoping there is a flaw in the trade negotiations thanks to was happening in davos . the canadian foreign minister met with the u.s. counterpart yesterday, presenting creative ways to get around some of the more contractible problems in the talks. according to the canadian side, the u.s. representative did not reject them out of hand. progressat passes for in these talks. we are looking at the automotive side, where the u.s. estimated higher content. the canadians and mexicans like the idea. things are inhose

north america. they calculate the amount of content in cars. the u.s. might like that idea. when does the u.s. delegation arrived? back andy will travel check in with their governments over the weekend. they are due here on monday for the final day of talks. what we hear from them could determine whether or not the treaty goes forward. onotiators here are working a lot of different topics. there are 30 chapters in the nafta agreement. they are making progress on digital commerce and telecommunications. the mixed messages coming out of those talks. the mexican negotiator said we are making some good progress, but stakeholders briefed by the canadian negotiation said there is no progress at all.

it's hard to tell it's happening. we are looking at to those principles and what progress has been made. alix: we will hear from president trump and up 45 minutes. it's great to see you. david: mexico's cheap nafta it negotiator expressed hope, saying we are advancing and having good discussions and good technical products -- progress. the discussion continues great we welcome antonio garza, the former ambassador. he now works in mexico as counsel. welcome back to the program, mr. ambassador. us what you are hearing in mexico city. maybe starting to hear things are moving forward. antonio: the talks have become more constructive.

no one had any illusions going in that it would be easy. there was a sense that after you woulde or six, get into the red zone, these last 20 yards would be the hard yards and that's what we're seeing. it's interesting, the previous segment talked about flexibility. i don't know this flexibility but an openness to discussion about characterization of certain content around the rules of origin it, which have been a sticking point. i think they will get there if they start focusing on a regional content as opposed to national content and the value each country brings to the manufacturing. areasgo down the list of that have been problematic, there is more movement on the sunset clause.

there have been proposals that allow for countries to opt out. rise in19, that may terms of difficulty, be a red line for the canadians particularly in light of recent activity from the u.s. on anti-dumping. i'm encouraged. i think there is movement in the right direction, but no illusions of these last yards will be the hard ones. if they get ad: sensible deal together, how does it relate to the balance of trade? that's what the president always talks about. we have a chart about that. our trade deficit is really going up. , will that a deal affect the balance of trade?

the balance of trade deficit with mexico is relatively small in terms of the overall deficit. 60 and $70is between billion with mexico. i think if the agreement is renegotiated and there are new chapters, if you look at the overall deficit if you integrate energy into the agreement, there is a significant surplus with mexico. we are a net exporter to mexico of energy. if you take it in its totality and you modernize it and add chapters such as energy, e-commerce, i think you will see the deficit start to shrink. you will see our ability in north america to be far more effective as a platform at the rest of the world. in terms of the economics, it would be good and strategically it would be good for north

america and the rest of the world. david: if things really went south and they did not work out, there are some real losses. we hear about this from agricultural states. this is how big the exports are to canada and mexico. it would be substantial loss for the farmers. the agricultural community construct up very clearly in support of nafta. inre was some disappointment the midwest and the agricultural center in the wake of the withdrawal from the tpp, which they looked at the something that would open up the additional markets. g sector has been very clear in making the case for this is good for the midwest area we see increasingly in in theturing suppliers u.s., jobs that are created and related to manufacturing that

sometimes because it's not the whole automobile we lose sight of how important those jobs are. risk, thoset are at states, those industries are more vocal and that's good. david: i want to talk about immigration. it seems they are going to come out monday with a proposal. 1.8 will increase it to million dreamers. overs a big increase 700,000. they won a trust fund for the wall. they want to curtail chain migration. you really know this. you come from a southern border city in texas. your grandfather came from mexico. does this make sense? know, i've been

very skeptical of the wall. i don't see it as an effective approach to security. the return on investment comes up short. if you look at the proposal, i got on the phone with people here in mexico and the united consistently the characterization of the proposal was told, possibly game changing in the sense that he addressed the dreamers and expanded that. they talked about the path to citizenship, the wall again. that's a line he has drawn. it appears to be sensible. on the visa lottery, he says these have to be allocated back to merit. there is a little bit and therefore people to like. it's the kind of thing that one

said, it's the kind of sandwich you've got to take a big bite out of and swallow fast. it's going to take some leadership. 60 votes in the senate could be tough. more conservative members of the house might find it difficult. the president has put down a stake. bold, characterized as showing leadership on the issue. david: how are the mexican people regarding the proposal? generally favorably was the feedback i got. it was generally well received. wall ishe issue of the a nonstarter. payment of the wall is a nonstarter here.

if you look at the historic lottery ande visa change migration it, i think they will look at it. they hope the issue will be the hind us and nafta can be renegotiated. it,get these things done the president will have a couple of wins. it's always great to have you with us. thank you for your time. we will go to the present speech in about 18 minutes from now. alix: the white house released some excerpts from the speech. here are some the details. america is once again at competitive and growth will help drive global growth. fairll insist on reciprocal trade. this is interesting to point

out. that is going to be good for you. dollars, you have steve mnuchin saying his comments were in no way any intention of violating the commitment that we are trying to intervene in currency markets. did he really understand what he was saying and speaking off-the-cuff? that was steve mnuchin talking to the wall street journal, walking back his comments from yesterday. up, addressing the take up. fix therules that will compensation gap for minorities and women. ♪

>> we are here in the hewlett-packard enterprise green room. up, the intel cfo. alix: we cover of three things wall street is buzzing about this morning. dell is considering strategic options like an ipo. they have a $46 billion debt loan. we love this one. steve schwarzman feels good about what the firm did it. is looking ata

the compensation gap for women and minorities. i won't say the word receptacle. .avid: joining us now is >> wall street kept working while everyone was in davos. dell seems to be moving forward. is private equity playbook right in front of us. dell went private in 2013. it was a massive deal at the time. silver lake stepped in and partnered with michael dell to take the company private. it is struggling in a number of ways. they went private. they did some big deals, now it's time. it's time to do something. private equity, they want their money back. david: they go in and cleaned it

up and get rid of some people and make money. this is the reverse. they buy something really huge. alix: it sounds like retail. >> if you look at how private equity feels work, you were describing the classic old-school private equity stripping down and flip it and make some money. it's old-school. really, it's a very interesting point. what investors demand now is you buy companies and then do something to it and restructure it. there is a lot of debt here. they do need to address that. most importantly, private equity gets to make money. this is something old school and new school is way -- well. alix: this is an unbelievable

story. they make a deal. totructure, but you've got pay off the credit default. david: make sure it pays out. jason: it's amazing. veryspeaks to the complicated world of not just private equity, but asset managers. you have black stone with half $1 trillion. private equity. they have grown tremendously. that is who is on the other side of this trade. david: we talked about that. this is what he had to say in davos. ,> we checked with law firms they told us on the situation it was something that was completely within the normal bounds and customs of what was

done. it was complex. it was a trade put on by hedge funds, trying to short or go long. it didn't work out in the interest of one of those funds who is very unhappy. jason: unhappy enough. alix: a lawyer said it was fine. is that something you want steve schwarzman it saying? jason: it was super complicated. alix: but the lawyers were cool. david: gender and bank of america, this is fascinating. everywhere you look, it's in the news every day. they have a new approach to reduce it. j; they jump right to the top of the list. insight, we are

not going to ask people there salary history because we feel that may bias us toward a gender pay gap. start from athey flesh say. -- slate. does this become industry-standard? anyone who has ever had a job interview, you start thinking about what do you say about having been paid before. it's a dynamic that is intrinsic. david: what do you make in a law firm? alix: of course. i'm sure they will have other ways of finding up how much you are worth it your other job. there's got to be ways around it. this page cap, a lot of banks have said women make 99% of what men make. adjusting for

factors. this is the money we made after counting everything. alix: it's good to see you. jason kelly joined us. the white house has released some excerpts from the speech he will bring in half an hour. he said the u.s. will insist on fair trade. growth will help drive global growth. be al like it's going to few things that come along with it. david: airlines are under pressure. we will look at why airline shares crashed this week. more on what i'm watching next. check out tv . you can interact with us directly. go to tv on your terminal. this is bloomberg. ♪

david: airline stocks, they've had a rough week. united airlines said things are rough. we going to add some routes and capacity. look at what happens. it fell off a cliff. the other guys did as well. alix: why would they do that? oil prices being brought down to 30. david: warren buffett said we are going to start investing in airlines because we think they've learned their lesson. berkshire hathaway at lost $700 million in one day. the question is load factor. it was a percentage of the aircraft used. david: you want to get that up high. this shows a red line across the middle.

this is united airlines, american airlines. they all don't close zero. that means you can't make money over the long term. to add capacity into that is insane. alix: will shareholders have anything to say about it. shareholders announced don't do that. we want capital return. if shareholders did that for airlines, with that change the conversation? -- warren and been buffett is not going to be happy at all. alix: join us for the president's speech from davos. we will take you there live. the dollar keeps getting pummeled. this is bloomberg. ♪

retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ alix: davos meet trump.

we are just moments away from president trump's america first speech in davos. he will insist on fair trade. trump fails to sustainably boost the dollar which hit its lowest level since 2008 -- 2014. the u.s. economy expected to hit 3% in the fourth quarter. can the tax cut keep growth growing higher? david: i am david westin back with alix steel. alix: here is the markets. you are looking at the best january so far for the s&p since 1997, not a good month for the dollar. the dollar index continuing to grind lower. the euro-dollar around the 2014 higher. year and crude pretty much flat, but higher around the $66 level. let's go to davos where alex

wayne is standing by. how does it feel on the ground? a pretty goods vibe in the conference center ahead of this speech. people are really interested. maybe a little trepidation about what he will say, but his excerpts just came out from the white house and it is kind of a conciliatory speech, i would say. he is trying to square his america first, nationalist agenda with the globalist ideas that are celebrated at this conference in davos. alix: let's take a look at that. some of the expert -- excerpts say america is competitive again and u.s. growth will help drive global growth. we want fair trade, but it will help you to bank. -- help you too. of people predicted things would go south when he

came in and they have not. people cannot complain much about the economics. alex: he has made a lot of these people much wealthier, to be honest. i think he has got a lot of friends now in the business world that he maybe did not have even six months ago, before his tax plan passed. people are still concerned about trade and tariffs. just before he got to davos, he slapped tariffs on washing machines and solar cells from foreign countries. people here are worried about what is coming next. will he economically punish china, for example? slap tariffs on steel and aluminum manufacturers, that would have some market impacts. david: what we are watching as we are talking to you is president trump with close schwab, the founder of the world economic forum, on the stage. we are told this will only be like 15 minutes long.

why so short? alex: it seems like he is eager to get home. he has a lot to do back home. he has to negotiate a deal on immigration with congress ahead of the february 8 deadline before we could possibly have another government shutdown. there is new reports back home on the pressure probe. a report in "the new york times," that trump at one point sought to fire the special counsel looking into his campaign ties to russia. david: we are watching klaus schwab, presumably introducing the president of the united states. back to washington to face possible inquiry from mr. mueller. do we have a sense of his preparation? alex: not a lot. we have confirmed that he is expecting to get an interview request from the special counsel

, and he said he will cooperate. that could happen in the next few weeks, the president of the united states could be interviewed in this investigation. it will be quite a moment. alix: you get in there, because you want to hear the speech. david question or -- david? david: we have michael mckee in montreal covering nafta talks. as we prepare to listen to the president, what do we expect to hear on trade? how hawkish or dovish might he be going? michael: that is what everybody wants to know here. the president's stance on international trade may have a bearing on whether these talks succeed or not. everyone wants to know whether or not he will get into any kind of a trade war where he will draw barriers, and arguably there is a bit of a trade war with canada going on, and

international trade committee ruling on bombardier tariffs. the canadians are worried about what he might do on steel and aluminum. a lot of imports for the united states come through canada. disagreements here about how progress is going on these trade talks, a lot will depend on what happened in douglas -- davos as the principals met and what they tell their investigate -- negotiators. alix: what do we know about success? will it be a trade deficit or a technical measure we need to look for, for who wins question mark michael: that is the hard thing, because you do not know what donald trump is looking for. he mentioned in his interview yesterday there is a $71 billion trade deficit with mexico, and economists would say that is not a bad thing because we are buying a lot of exit can products that are cheap --

mexican products that are cheap. bringing down the trade deficit is not the answer and not easy to do, so how do you measure success? all sides have to feel the have got something out of this, and that will be hard because the u.s. put tough, redline conditions on putting america first. he will tell other countries they should put people first and if they do that, canada and mexico cannot give into the united dates. -- united states. david: klaus schwab is introducing president trump, who you can see waiting to step up. he is concentrating. alix: he looks to be feeling good. david: the president took some trade action, solar panels and washing machines. do you take that as a hostile act? i beg your pardon, president trump is about to step to the program -- rhodium in davos comest -- podium in davos,

switzerland. mr. trump: thank you very much. it is a privilege to be at this forum where leaders have tohered for many years discuss how we can advance prosperity, security, and peace. i am here today to represent the interest of the american people, and to affirm america's friendship and partnership in building a better world. like all nations represented at this great forum, america hopes for a future in which everyone can prosper and every child can grow up free from violence, poverty, and fear. over the past year, we have made extraordinary strides in the u.s. --are lifting up for but forgotten communities, creating exciting new opportunities, and helping every american find

their path to the american dream, the dream of a great job, a safe home, and a better life for their children. , the years of stagnation united states is once again experiencing strong economic growth. the stock market is smashing one record after another, and has added more than $7 trillion in new wealth since my election. consumer confidence, business confidence, and manufacturing confidence or the highest they have been -- are the highest they have been in many decades. since my election, we have created 2.4 million jobs. that number is going up very substantially. small business optimism is at an all-time high. new unemployment claims are near the lowest we have seen in almost half a century. african-american unemployment has reached the lowest rate ever

recorded in the united states. and so has unemployment among hispanic americans. the world is witnessing the resurgence of a strong and prosperous america. i am here to deliver a simple message. there has never been a better justto hire, to build, and , and grow in the united states -- invest, and grow in the united states. america is opened for business and we are competitive once again. the american economy is by far the largest in the world, and we have just enacted the most significant tax cuts and reform in american history. we have massively cut taxes for the middle class, small businesses, to let working families keep more of their hard-earned money. we lowered our corporate tax rate from 35% all the way down

to 21%. result, millions of workers have received tax cut bonuses from their employers in amounts as large as $3000. the tax cut bill is expected to raise the average american's household income by more than $4000. the world's largest company, apple, announced it plans to bring $245 billion in overseas profits home to america. their total investment into the united states economy will be more than $350 billion over the next five years. now is the perfect time to bring your business, your jobs, and your investments to the united states. becauseespecially true we have undertaken the most extensive regulatory reduction ever conceived.

taxation. is stealth the u.s., like many other here kratz,nelected rats, theye -- bureauc have imposed antibusiness regulations on our citizens, but no vote, no legislative debate, and no real accountability. in america, those days are over. i pledged to eliminate two unnecessary regulations for every one new regulation. we have succeeded beyond our highest expectations. cutead of 2-for-1, we have 22 burden some regulations -- burdensome regulations for every one new rule. we are freeing our workers to

they can thrive and flourish as never before. we are creating an environment that attracts capital, invites investment, and rewards production. america is the place to do business, so come to america where you can innovate, create, and build. i believe in america. as president of the united states, i will always put america first, just like the leaders of other countries should put their country first also. meanmerica first does not america alone. when the united states grows, so does the world. american prosperity has created countless jobs all around the globe, and the drive for excellence, creativity, and innovation in the u.s. has led to important discoveries that help people everywhere live more

prosperous and far healthier lives. as the united states pursues domestic reforms to unleash jobs and growth, we are also working to reform the international trading system so that it promotes broadly shared prosperity and rewards to those who play by the rules. we cannot have free and open trade if some countries exploit the system at the expense of others. but itort free trade, needs to be fair and it needs to be reciprocal, because in the end unfair trade undermines us all. the united states will no longer turn a blind eye to unfair economic practices, including massive intellectual property subsidies, andal

pervasive state led economic planning. these, and other predatory behaviors are distorting the global markets, and harming businesses and workers not just in the u.s. but around the globe. just like we expect the leaders of other countries to protect their interest, as president of the united states i will always protect the interest of our country, our companies, and our workers. we will enforce our trade laws and restore integrity to our trading system. only by insisting on fair and reciprocal trade can we create a system that works not just for the u.s., but for all nations. as i have said, the united states is prepared to negotiate mutually beneficial, like lateral trade agreements with all countries -- bilateral trade agreements with all countries.

this includes countries in tpp. we have agreements with several of them are ready. we would consider negotiating with the rest either individually, or perhaps as a group, if it is in the interest of all. my administration is also taking swift action in other ways, to restore american confidence and independence. we are lifting self-imposed restrictions on energy to provide affordable power to our citizens and businesses, and to promote energy security for our friends all around the world. no country should be held hostage to a single provider of energy. back, and nowring is the time to invest in the future of america. taxese dramatically cut to make america competitive.

we are in eliminating burdensome regulations at a record pace. reaucracyforming the bu to make it lean, responsive, and accountable, and we are ensuring our laws are enforced fairly. we have the best colleges and universities in the world, and we have the best workers in the world. energy is abundant and affordable. there has never been a better time to do business in america. we are also making historic investments in the american military, because we cannot have prosperity without security. to make the world safer from rogue regimes, terrorism, and are asking our friends and allies to invest in their own defenses, and to meet their financial obligations. our common security requires everyone to contribute their fair share. my administration is proud to

have led historic efforts at the united nations security council and all around the world, to unite all civilized nations in our campaign of maximum pressure to de-nuke the korean peninsula. we continue to call on partners support foriran's terrorists and to block their path to a nuclear weapon. we are working with partners to destroy jihadist organizations such as isis, and successfully so. the united states is leading a broad coalition to deny terrorists control of their territory and populations, cut off their funding, and discredit their wicked ideology. report that the coalition to defeat isis has retaken almost 100% of the territory once held by these killers in iraq and syria.

there is still more fighting and work to be done, and to consolidate our gains we are committed to ensuring that afghanistan never again becomes a safe haven for terrorists who want to commit mass murder to our civilian populations. i want to thank those nations represented here today that have joined in these crucial efforts. you are not just securing your own citizens, but saving lives and restoring hope for millions and millions of people. when it comes to terrorism, we will do whatever is necessary to protect our nation. we will defend our citizens and our borders. we are also securing our immigration system as a matter of national and economic security. america is a cutting edge economy.

but our immigration system is stuck in the past. we must replace our current system of extended family chain migration with a merit-based system of admissions that selects new arrivals based on their ability to contribute to our economy, to support themselves financially, and to strengthen our country. in rebuilding america, we are also fully committed to developing our workforce. we are lifting people from dependence to independence because we know the single best anti-poverty program is a very simple and very beautiful paycheck. to be successful, it is not enough to invest in our economy. we must invest in our people. when people are forgotten, the world becomes fractured. only by hearing and responding

to the voices of the forgotten can we create a bright future that is truly shared by all. the nation's greatness is more than the sum of its production. a nation's greatness is the sum of its citizens, the valleys, , and, love, devotion character of the people who call that nation home. for my first international g7 summit to the g20 to the un's general assembly to aipac to the world trade organization and today, at the world economic forum, my administration has not only been present, but has driven our message that we are ,ll stronger when free sovereign nations cooperate toward shared goals and cooperate toward shared dreams. in this room are

some of the remarkable citizens from all over the world. you are national leaders, business titans, industry giant, and many of the brightest minds in many fields. each of you has the power to change hearts, transform lives, and shape your countries' destinies. with this power comes an obligation, a duty of loyalty to the workers who have made you who you are. so together, let us resolve to use our power, our resources, and our voices, not just for ourselves but for our people, to lift their burdens, to raise their hopes, and to empower their dreams. to protect their families, their communities, their histories, and their futures, that is what we are doing in america. and the results are totally unmistakable. it is why new businesses and

investment are flooding in. it is why our unemployment rate is the lowest it has been in so many decades. it is why america's future has never been brighter. youy, i am inviting all of to become part of this incredible future we are building together. thank you to our hosts. thank you to the leaders and innovators in the audience. most importantly, thank you to all of the hard-working men and women who do their duty each and every day, making this a better world for everyone. together, let us send our love and our gratitude to make them, because they really make our countries run. they make our country's great. thank you, and god bless you all. thank you very much. [applause] have been listening to

donald trump speaking at the world economic forum in davos. he spoke for just over 15 minutes. among the messages, it has never been a better time to hire, build, or invest in the united states and as he put it, america is open for business. he believes in america like he leaders to believe in their countries, but america first does not mean america alone. he talked about trade and said we need to return to a world where we have fair trade, not just free trade, and to restore integrity to the system. he talked about the tpp and recognized the countries he left behind have not gotten together. they are interested in talking bilaterally. he is taking questions in davos. in industry,aders none of whom i had known but had

read about for years, and it was truly an incredible group. i think i have 15 new friends. this has been really great in putting together the economic forum. dream of aorm was a lot of people over many years, but they were not able to get it done. many people tried. ronald reagan was really the last to make a meaningful cut and reform, and ours is cutting and reforming. we emphasize "cut," but the reform is probably almost as important. it is very tough politically to do it. hard to believe that it would be, but it is very tough and that is why it has not been done in close to 40 years. once we got it going, it was going. would not say total surprise, but one of the big things that happened is at&t and some others came out very early and said they were going

to pay thousands and thousands of dollars to people that work for their companies. 400,000,300,000, 500,000 people working for these companies. all of a sudden it became like a , beautifulll, a big waterfall where so many companies are doing it. just today, they announced many more. now it is a fight for who will give the most. it started at $1000 and now we have them up to $3000. this is something we did not anticipate and often times in business, things happen that you do not anticipate. that is usually a bad thing, but this was a good thing. it came from out of nowhere. no one thought of this as a possibility. we said, wait until february 1 when the checks start coming in and people have a lot more money in their paycheck, because it is not just a little money. it is a lot of money for people making a living.

we thought february 1 it was going to kick in and everyone will be -- but we have not gotten there yet and it has kicked in. it has had an incredible impact on the stock market and stock prices. we have set 84 records since my election, record stock market prices meeting we hit new highs 84 different times out of a one-year period. in all fairness, that was done before we passed the tax cuts and tax reforms. so what happened is really something special. know, apple came in with $350 billion, and i tell you, i spoke with tim cook and said, i will never consider this great run that we have made complete until you start building plants in the u.s. and i will tell you, this moved up very substantially, but when

i heard $350 billion i thought they were talking $350 million. that is a nice size plant, not the greatest, but not bad. is $350d, no, sir, it billion. i said, that is something. we have tremendous amounts of money, including my newfound friends from last night, great companies that are all investing . one of the gentlemen said he is putting in $2 billion because of the tax cuts. i said to myself, he is the cheap one in the group because they are putting in massive numbers of billions of dollars. i think you have a brand-new united states, a united states were people from all over the world are looking to calm in and invest. invest.in and i have a group of people that have been so -- a whole lot of them, so i will not introduce

because i would insult at least half of them -- but i have a group of people who worked so hard on this and other things. we had a great first year, so successful in so many different ways, and there is a tremendous spirit. any look at all the different charts and polls and see as an example, african-american unemployment at the historic low . it has never had a period of time like this. same with hispanic. women at a 17 year low. it is very heartwarming, but there is a tremendous spirit in the united states. i would say it is a spirit like i have never witnessed before. i have been here for a while and i never witnessed the spirit our country has now. i want to thank all of use who are pouring billions of dollars into our country, or $10 into our country. we thank you very much. >> mr. president, i will ask you

maybe a personal question, but before doing so -- mr. trump: sounds interesting. >> i would like to acknowledge the small -- strong presence of your cabinet members who tremendously contributed to the discussions. mr. trump: i would like to do that. gary, robert,r, even my general and various who are making our military protection little bit better for us. thank you very much. as everybody understand that? thank you for being here. >> my may be personal question would be, what experience from your past has been most useful in preparing you for the presidency? mr. trump: being a businessman

has been a great experience to me. business,ays loved always been good at building things, and i have always been very successful at making money. i would buy things that would be failures and turn them around and try to get them for the right price, turn them around and make them successful. i have been good at it. that takes a certain ability. there has never been a businessman or business person elected president. it is always been a general or politician. throughout history, you had to be a general, but mostly it was politicians. you never had a businessman. us lastaying to klas night, had the opposing party to me won, instead of being up almost 50%, the stock market is up since my election almost 50%. rather than that, i believe the

stock market from the initial level would have been down close to 50%, that is where we were headed. they were going to put on massive new regulations. it was choking our company -- country to death, and i was able to see that as a business person. i always seem to get a disproportionate amount of press or media. [laughter] mr. trump: throughout my whole life, somebody will explain why, but i have always gotten a lot. as a businessman, i was always treated really well by the press. i have always had a very good press, and it was not until i became a politician that i realized how nasty, help me, have vicious -- how mean, how vicious, and how fake the press can be. line,erall, the bottom somebody said they could not have been that bad because here we are, as president.

we are doing a great job with my team. i have a team of tremendous people. we are doing a special job, and i believe it was time to do the job because i do not think the united states would have done very well if it went through four or eight more years of regulation, and a very antibusiness group of people. we have a very pro-business group. we have regulations cut to a level in the history of our this was reported recently, in one year we have cut more regulations in my administration than any other administration in 4, 8, or 16 years. we have cut more regulations in one year, and we have a ways to go. we are going to have regulation. there is nothing wrong with rules and regulations. you need them, but we have cut more than any administration

ever in the history of our country, and we still have a ways to go. between that and the tremendous tax cuts, we have really done something. i saw last night with some of the leaders and the business people, i think i have been a cheerleader for our country. every room -- everybody representing a country or company has to be a cheerleader or no matter what you do, it will not work. i am a cheerleader because it is easy, because i love our country and i think we are just doing really well. we look forward to seeing you in america, special place, and where you are is a special place also. thank you very much. >> thank you. thank you very much, mr. president, for being with us. the world economy formed a here, and isembled

quote you from your last piece of your remarks. we are among the hard-working men and women who do their duty each and every day, making this world a better place for everyone. thank you very much. mr. trump: thank you very much, everybody. thank you. [applause] david: we have been listening to the q&a session at the world economic forum. i want to bring in this eco-data. it was somewhat disappointing gdp growth, 2.6% and they were due tong 3%, apparently inventory depletion and some trade numbers. .arty schenker is here tell us what your reaction is. i must say watching him, i got some sense of why he was so successful as a salesman, someone who put together a deal.

he was selling. he is a cheerleader. marty: he sold america first as america for everyone, and he did a very good job of speaking to his audience. he must appeared to be a globalist in some ways -- almost appeared to be a globalist in some ways. and the q&a he had the opportunity to go off script and he did not do that in a many -- a major way. his characterization of the press is a little suspect, but he performed well. alix: he did stick to script, which is helpful. that was unusual for him, and he was much more subdued, very presidential, and he ended positively. marty: i think the people there and the people around donald trump will think this was a great decision to go to davos. i am sure he will be invited back next year. alix: let's take a look at the eaton mcdata -- economic data.

we did not get a three handle so we did not see three quarters of 3% growth. the economy grew 2.6% the last quarter, but what will be beneficial for president trump and his staff are the details in the report. personal consumption up 3.8%. final sales to domestic purchasers up over 4%, the best since 2014. it points to stronger growth itad and as david mentioned, was all about trade and inventory that dragged down the gdp number. david: also durable goods, 2.9%. durable goods where way up. alix: business investment equipment was up, the best since 2014. residential spending also up. the s&p futures are off the highs of the session. the dollar index did not have a big move. is off the year

highs of the session but that was happening during the president's speech. really taking this number in stride. also joining us as the economic editor from bloomberg businessweek, and i read jersey. you are looking at these numbers. your take? peter: it is a good morning for donald, gave a successful speech and davos, and we have a strong gdp number. the fact that it came in below three is not the number to focus on. domestic sales to purchasers, which strips out volatile trade and -- trade numbers comes to the highest since 2014. the underlying growth is quite strong despite the fluctuations caused by more volatile components. alix: this is going to be an interesting conversation starter for the white house because

trade erased some of that growth, but you have the weaker dollar going forth. marty: i think it is important thatte that the tax cuts have not been reflected in these gdp number at all, the anticipation of tax cuts, maybe. that increased spending that donald trump is so proud of filters through the economy, that number will only get bigger. david: we have these numbers out on gdp and other numbers. how does that fit into monetary policy? what does it do to rates? ira: this is kind of an on trend number. the underlying real data in the gdp report was still reasonably solid. federal reserve is likely to continue to hike. i think next week they will probably say, growth has been ok, inventory fluctuates quite a lot, so three hikes is likely this year.

that probably means we get a flatter yield curve and we continue with this slow pace of hikes. alix: that is the question going forward -- are we going to see more of a supply response or demand response when it comes to tax reform? these numbers indicate that could be more of a supply response and demand. what does that mean? the taxhe tax -- ira: cuts will not be the driver of more treasury issuance and more supply of u.s. government bonds. the real thing is that over the next couple of years are large increases in social security and medicare, along with things like the fed's run off of the balance sheet. those will generate more supply. stay morning at 8:30, along with other economic numbers we will get the treasury report. you could get a change in how they are going to fund, and based on that, you could see a market reaction.

alix: in longer-term, based on these numbers and expectations, will we see a supply side or demand-side response? the key question is how businesses are going to respond to this. are we going to see an uptick in business investment? that will not affect the treasury, but will affect corporate debt issuance. it is plausible that companies will take the opportunity to invest more. some of it will come firm repatriated money, but you can see an increasing capital market funded by debt. alix: that has implications on inflation. if you see companies responding and putting more money into production, that will be less inflationary than if it is just a demand-side. ira: one of the things we saw in this report is steady-state inflation. we have not had a large uptick in inflation at all. if you look at the tips market

and what that is implying for inflation, that has gone off quite a bit, about 30 basis points over the last few months. if you continue to get these higher inflationary expectations because growth and aggregate will be higher, you wind up with the treasury market that will continue to sell off, even if it is only a little bit at a time. alix: for wholesale inventories, when will we see the inventory pickup? i feel like we have been waiting for that. why have we not seen that? peter: we may not have seen it yet, you have to think of it as a positive. if we are drawing down inventories, the day will, when companies have to right size their inventories, and that will add to purchases. it is sort of a pent-up demand that we will eventually get that hit. alix: eventually. david: i do not mean to be a doomsayer, but when do we worry about overheating? labor marketk the

is where we are starting to see the tightness, and i would not call it overheating because of this point, workers are still getting kind of unacceptably low wage growth. time, but itme a is probably not even 2018. david: take us back to washington. the president, we think he had a strong showing in davos. he has a strong economy. going forward, how does it help him with congress? for daca, the wall, maybe infrastructure, how does it affect his stretch -- stature? marty: the dollar's speech was backward looking, taking stock of what he has -- davos speech was backward looking. the state of the union will spell out what he plans the next year. people expect some level of specifics on infrastructure and he might touch on welfare reform. i sensed donald trump he has

some positive momentum. "the new york times" and others notwithstanding, so i think he will take that forward and spell out some specific things to get done, even on immigration. strike me ass not someone who likes to consolidate and sit on a lead. marty: there are many cases where he takes people off message on an errant tweet or conservation -- controversial statement. alix: we talked a couple weeks ago, you were looking for 20 to 30 basis points for the flatten her for 2-10. how arethat changed and you positioned going into the state of the union? , and theas not changed data today confirms all of the trends we have been seeing. modestt that you have inflation increases potentially because of the tight labor market, you wind up with an environment where the fed hikes, the curve flattens.

we cannot continue to get a flatter and flatter curve. alix: any position into the state of the union? of thethink the state union is more political and could potentially generate volatility, but nothing from a trade perspective. alix: always great to have you. nobel peace prize winner be tristan gives her reaction of president trump's speech. david: if you cannot watch television, you can always listen to the radio. tune in to tom keene and jonathan ferro from 7:00 to 9:00 and pimm fox from 9:00 to 10:00. live from new york, this is bloomberg. ♪

kailey: this is bloomberg daybreak, i am kailey leinz. coming up, david lebovitz, jpmorgan asset management strategist. david: we have just heard from president trump in a speech and q&a in davos at the world economic forum, and now we go back to haslinda amin who is speaking with be tristan -- beatrice thin. linda: president trump said this is the best time to be invested in the u.s., no better time. there was middle luncheon -- little mention of geopolitics when he said he wants to denuclearize the korean peninsula. were you surprised by that one despite that one line,

the fact that that is the biggest risk in the world today? beatrice: this is the overhanging threat, and we need to remember the risk is increasing. yesterday, the doomsday clock was moved to minutes closer to midnight. what do we do with business when it is a nuclear war? it will all collapse our system. there is definitely a need to prioritize. he mentioned a denuclearize korea and next week he will perform then new nuclear policy rules. it is a very dangerous situation. is haslinda: -- is trump's nuclear policy different from obama or bill clinton? some suggest it is the same. beatrice: all new clear armed -- nuclear armed states threaten.

this changed with a trump doctrine. it lowers, makes it more usable. do we really need trump feeling that he has more options when it comes to nuclear weapons? it is dangerous. haslinda: why should north korea abide by the rules with the likes of the u.s., the u.k., china, india, or not? beatrice: this is the big problem with proliferation. we cannot address proliferation without looking to the existing nuclear weapons. we might've been lucky to get a deal with iran, which we hope will hold on. it will not last forever if we do not address this underlying thing that sometimes it is ok to threaten to use nuclear weapons, that it makes them safer. haslinda: is it fair to say the u.s.' nonproliferation efforts have failed? beatrice: we have seen since the end of the cold war, we have

more nuclear armed states, perhaps not as many as there could have been. we will never really be able to be safe if we do not address the existing nuclear weapons. haslinda: what is the solution? to be implemented to ensure that gets pushed through? beatrice: threatening to ms credit -- threatening to indiscriminately murder citizens, that is not what we should be doing today. that is not the way the military should be acting. this last year, have the majority of the states in this world moving that direction by adopting a prohibition on nuclear weapons. these weapons that no longer fit systems, allfense states really need to take a strong stand against this threatening to use weapons of mass destruction by joining this treaty. haslinda: you were in japan

recently and abe has said you have to inject realism in business. what is injecting realism? what does that amount to? beatrice: if we keep nuclear weapons forever, they will be used. that is reality. moving toward disarmament, you are accepting that nuclear weapons will be used. we are not prepared to deal with those consequences. the realist option is to do something about it. we can get rid of nuclear weapons or they get rid of us. who is the realist? haslinda: we talk about risks. the u.s. has made clear it will not tolerate a nuclear north korea. aes it necessarily mean that new war is -- nuclear war is inevitable? beatrice: the risk is always greater than zero, and tensions go up and down. we are in high risk, high

tension, that sooner or later, our luck will run out. we saw in the cold war several times through the cuban missile crisis as well as accidents and misunderstandings. luck is not a sustainable strategy. haslinda: definitely something not to rely on. we are coming to you live from davos. it is almost a wrap of our coverage from the world economic forum. alix: haslinda amin of bloomberg news. the recent rash to risk assets if you have a bloomberg terminal, check out tv . interact with us directly. go to tv on your terminal and click around. this is bloomberg. ♪

david: you are looking at marine one, a live shot of marine one in davos, switzerland, ready for

the president to get out of town. he has just made his speech. what you do not see are the other four to five helicopters that go with them as part of his entourage. alix: it is called there, and like six feet of snow. i am watching investor flows. and epf far had their report that showed what happened to equity flows. $33 billion went into stocks across the globe. 7 billion of that went into u.s. equities. $4.6 billion to u.s. -- european equities, at the expense of -- can you guess? high yield bonds. they saw outflows of about $2.5 billion, and i was wondering when we would start to see a rotation out of high-yield. good to see a little bit of a tipping point. david: at what point do equities get overbought? alix: industrials, 90% of

industrials are over there 200 day moving average. it does not mean they cannot go further or it is an rsi issue where they are overbought. david: both ray dalio and larry fink saying there is way too much cash that needs to get deployed. where will that cash go? alix: howard marks said all the easy money has been made. at the 9:00 hour, i will be in place of jonathan ferro. i will be speaking with david lebovitz of jpmorgan. happy friday. david: happy friday. alix: this is bloomberg. ♪

for ourom new york city viewers worldwide, i am alix steel. 30 minutes until the start of trading. this is the countdown to the open. ♪

coming up, coming to america. the president tells the world's elite in davos america is open for business. for itsdollar down biggest losing streak in more than three years. and the u.s. economy growth is lower than projected in the fourth quarter, but there are signals of solid momentum. happy friday. here is where we stand in the markets. s&p futures continue to grind higher by about nine points. the best january since 1997. highero-dollar grinding as well, up three times of 1%. around the highest level since around the highest level we have seen since 2007. and oil continuing its outperformance w