mark: i'm mark crumpton with bloomberg first word news. president trump and congressional leaders today reached a short-term deal to reopen the government for three weeks while negotiations president'sr the demands for money to build his long promised wall at the u.s.-mexico border. pres. trump: so that be very clear. -- so let me be very clear. we have no choice but to build a powerful wall or steel barrier. if we do not get a fair deal from congress, the government will either shutdown on february 15 again or i will use the powers afforded to me under the

laws and the constitution of the united states. mark: the deal was a dramatic turnaround for the president after insisting for five weeks he would not allow the government to reopen without funding for a border wall.the president visited as his approval plunged, ill travel was disrupted -- air travel was disrupted. roger stone says he believes his arrest in the special counsel's russia probe was politically motivated and is vowing to plead not guilty and fight the charges. stone spoke to reporters after he was released on $250,000 bond from a florida courthouse today. protesters tried to drown him out. stone says he remains a supporter of cap. he is charged with witness tampering, obstruction, and lying to congress. paul manafort was back in federal court today. a federal judge will decide

whether he reached his plea agreement by lying repeatedly to prosecutors in the special counsel's office. the judge scheduled another hearin for early february. is found to lie, he could give years out of onto his sentence for conspiracy and fraud charges. nicolas maduro says he is willing to engage in talks with the opposition in order to avoid violence in the conflict over who is the legitimate leader of this country. nicolas maduro held a news conference today to defend the validity of his presidency and denounced the challenge from congressional leader juan gau ido, who has been recognized by the u.s. and several other major nations. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

scarlet: this is "bloomberg markets: the close." i'm scarlet fu in san francisco. lisa: i lisa abramowicz in new york. let's get you caught up on the market action. brought gains although they are off the earlier highs. now back up little more than 1%. the euro posting some of his best gains in a long time, up a percent versus the dollar. oil continuing its strengthening streak.two-year yields up by three basis points. very interesting to see a risk on tone. but to me, the story is the equity markets did not extend themselves once it was announced there was a deal to reopen the government. scarlet: that is a really good point. but on the other hand, we did not give back any either. you do have the global

backdrop to consider, which is gains in asian and european indexes. the taliban from overseas was better heading into this u.s. trading day. the dollar is down. the dollar falling against all major currencies and has remained the case even after the announcement the government will be reopened. we are keeping a close eye on airlines because the faa disruption this morning raises some questions about whether the first quarter profits could be threatened by extended by security delays.it has ended for now but we will see how it plays out. moving on to the price of oil, as you mentioned. alternative governments in petra states like venezuela in the past typically happen the stock oil price rallies.but that is not the case with the latest escalations of tension in the region. here to talk about why the current crisis in venezuela is not as bullish for oil as you think is liam jenning, who is with me in san francisco. when it comes to sa venezuela, this is a slow-moving

train wreck. what kind of scenario is priced into wti and brent? the oil market has had a few years to get used to the oil crisis in venezuela. oil production cut in half the last two years. i think what is priced in right expected in any way that venezuelan production will not be coming back anytime soon. was probably going to keep coming down. but i think also you have some other things weighing on the market right now.you have the buildup in oil production out of saudi arabia and russia last summer that helped tee off the route in oil prices last year and gathering worries about the global economy. lisa: i got to say i'm not understanding any of the narratives people are trying to paint about oil these days.venezuela , doesn't it have a better chance of getting oil rigs online with a different government? is that part of the reason why you would think oil prices might

decline? how much of this is oil prices being type two stock markets right now? -- tied to stock markets right now? liam: oil prices at the end of last year were super tied to markets. we saw the move almost in tandem in december. with a venezuela early voting itself, it is important to remember that even if there were a smooth transition here are the government, we are talking -- of the government, we are talking about a country that in all aspects essentially collapsed. it will take a long time to get capital back into the country, to get the oil industry rebuilt. the oil industry has gone through two crises this century. there was the enormous general strike and purge in the early 2000 and a complete collapse over the past few years. venezuelan oil in the best case scenario will not come back quickly. scarlet: you are bearish on oil because of the downside risk in

gasoline. explain how that fits into what we have seen with exports from venezuela and the broader dynamics within oil markets. liam: sure. year, we saw last gasoline refining margins really start to collapse, and we are seeing a lot of gasoline building.you can see in the u.s. inventory numbers . part of the issue here is u.s. refiners have been running a crudeighter slate of because of the light crude coming out of the permian basin, the shell basin. what that tends to do is while we are seeing high demand and high markets for diesel, when they do that they have a lot of gasoline. not running as strong.the venezuelan angle is venezuela tends to use a have your great of crude. u.s. gulf coast refiners love it.if that gets cut off for any reason, they will either try to go to

other sources of heavy crude who are also seeing pressure because can it has production caps. what they may inevitably do is switch back into lighter slates of crude. they will take the hit for as long as they can. but it will mean the gasoline inventories will keep building. even if we see bullish pressure from the crisis in venezuela, you will see gasoline margins pulling back as well. lisa: what is the bigger factor, the supply side or the demand side? liam: i will always answer that by saying -- lisa: come on. liam: it is true. we can see a disruption.let's take an example . lisa: hold that thought. we are going to go now to senator chuck schumer and house speaker nancy pelosi at a conference. >> the longest shutdown in american history will finally end today. the president has agreed to our request to open the government and then debate border security,

which is great news for 800,000 federal workers and millions of americans who depend on government services. as democrats have said all along, the solution to this impasse was separate funding for the government, and then go over our disagreements for border security. separate the funding of government from the discussion on border security. and that is what we got. and democrats in the senate and in the house were united behind this position throughout the shutdown and ultimately this agreement endorses our position. it reopens the government without preconditions, gives democrats and republicans an opportunity to discuss border security without holding hundreds of thousands of american workers hostage. we expect the continuing resolution to clear the senate and clear the house this

afternoon and be signed by the president today. , we want to go on thank the federal workers from the bottom of our hearts. they worked so selflessly this past month without pay.showing up to do a job they knew was important, but for which they were not fairly compensated. the workers showed up despite the calloused indifference of the administration, who treated them as hostages, who treated them as pawns, who belittled their financial strain. our dedicated public servants should never have to go through this again. we will do everything we can to make sure they will not have to. and this past month has proven just how vital government services are to the american people. whether it is our food safety, airports, national parks, economy, national security, and so much else.

the american people do not like it when you throw a wrench into the lives of government workers over an unrelated political dispute. working people throughout america empathize with the federal workers and were aghast at what the president was doing to them. hopefully now the president has learned his lesson. now, once the president signs the continuing resolution, we in congress will roll up our sleeves and try to find some agreement on border security. we don't agree on some of the specifics of border security. democrats are firmly against the wall.but we agree on many things, such as the need for drug inspection technology, you military and eight, strengthening security at our ports of entry. well the fact that we have so many different areas we agree. but today the president will sign the bill to reopen the government along the outlines of what we have proposed.

and hopefully it means a lesson learned for the white house and for many of our republican colleagues. shutting down the government over a policy difference is self-defeating. it accomplishes nothing but pain and suffering for the country and incurs an enormous political cost to the party shutting it down. ever hold cannot, american workers hostage again. speaker losey. thank you very much leader and for your leadership and bringing us to this important resolution now. very shortly, the senate will send over to the house, the paper i came over to see the original paper, and we will get it in a half hour. two resolutions. one. open up government for all the agencies of government, and one for the holistic rebel.

we reached an agreement to reopen the government now so that we can have a discussion on how to secure our borders. it is very clear that we all understand the importance of securing our border and have some very good ideas on how to do that. that will be part of the discussions as we go forward.house democrats look forward to working in a bipartisan way to pass all the bills to open government as we proceed into the conference of discussion. now i'm an appropriator and i was forged in that culture. and i know that the appropriators bipartisan elite can come to a conclusion. sometimes for principles of the leaders of the house and senate to weigh in, and i think we will have a very productive time a

shortperiod of time to come -- time a short period of time to come to a conclusion. encouraged by the workers. they have such strong character. but nonetheless, they have to pay the bills when they come due, whether it is a rent check, payment mortgage, credit card bills, car payment, the list goes on. some of them did not have gas cash, or any line of credit card ability to put gas in the car to go to work. it is really hard for some in the administration to understand how people live paycheck to paycheck and how marginal some of their existence is our.makes a difference in how they educate their children, how they put food on the table. again, how they pay the rent, etc. so we thank them and are so glad

, and as the president said earlier, as soon as possible or immediately, the quickest of the two, they will receive their back pay and pay that is due today. we are grateful to democrats on both sides of the capitol for their unity. that was very important in these discussions. it is sad it has taken this long to come to an obvious conclusion. talked about missed bills and financial security being shaken. sometimes questioning -- putting in question the credit, how people's credit is viewed. that is particularly problematic for our veterans, many of whom are in their jobs with security clearance. security clearance is affected if your credit rating is diminished. we are grateful to our veterans to protect us and move on to the civilian side to continue their

public service. we want them to have all the respect they deserve as well as our other public employees, federal employees, who are working so hard to meet the needs for people we value their purpose. we appreciate their diligence in performing their jobs, whether it is keeping us safe in terms civilians, the fbi, other areas of public safety, but also just in so many ways. the list goes on. you are familiar with this. we don't want in any way a shutdown of government to diminish the respect that we have for the purpose of our public employees and the excellence of their service. disagreement of policy should never be a reason to shut down government. really shouldn't, especially for a period of time that has an

impact on a paycheck. sad it has taken this long.i'm glad we have taken com to a conclusion today as to how we go forward in the next three weeks.again , i salute the minority democratic leader in the senate. bille house, we passed the working with our leadership 10 times. we brought bills to the floor to open up government, to open up government. the most recent one presented on the senate floor yesterday was so simple. billion, for billion dollars for disaster assistance, and open up government for two weeks. the republicans said no. the public weighed in. quoteote lincoln -- i lincoln all-time. we thank the public for weighing in so strongly and paying

attention. i think that will be the success of this conference. it is public awareness is so increased and public interest in it is so sharpened that they will see what the decisions are that we have to make and how to weigh in on those decisions. i thank you again. >> ok. wait. one at a time. come on. one at a time please. [indiscernible] >> how much of all of this is about the new power dynamic and his desire to show you who is really in charge? i don't get your

question. today we have come with a way wayard to debate the best to protect our border. i don't see this as any power play. and effect that he held out over wall funds. . pelosi: i think it is a statement to make about any leader in our country, but when i do say is let's go forward, get this done. the leader mentioned lessons learned and hope that people know we cannot hold our public employees hostage because we have a disagreement. 34 days? one-month having an impact on their lives. i don't think any characterization of the president's motivation. you have to ask him. scarlet: you are listening to a news conference hosted by city minority leader chuck schumer and house speaker nancy pelosi. they are talking of course about the president's agreement to

fund the government, the stopgap measures that will be passed to fund the government for the next three weeks, and this of course without funding for his border wall. chuck schumer striking optimistic notes over the ability of both sides to agree on border security to keep the government-funded after that so hopefully we will not get another shutdown or the president would have to declare a state of national emergency. as you mentioned earlier, no impact on the markets. we opened higher and remain higher even with all these machinations. yes. joe weisenthal has been watching this a lot and decided to stop by as he tends to do this time of day. thank you for being here as you are at this time.why is that so interesting, the fact that there was no market reaction? joe: it is interesting that the market reaction that was most notable was to the news that laguardia was going to shut down because people recognized it as a forcing mechanism.we are now at the point where people 's perception of government is

such that the only thing that counts as good news is forcing the government to act. but it was a pretty remarkable day in the market and overall pretty solid. lisa: i will say this was one of the most powerful days for faa agents and the control room if you think about it. because honestly, a lot of people think that was the moment that determines the end of the government shutdown. scarlet: it certainly got everyone's attention and the attention of those in washington as well. what gets my attention is in the markets, which is intel. you have disappointing results from intel.nevertheless , you look at some of the best performers and you have tech hardware any limit companies -- and equipment companies. materials doing better, better than 2% gain. when you look at the decliners, a lot of the defensive sectors, utilities, food at staples, which have been doing better at the end of last year, are now

back down once again, losing 1.3% when it comes to utilities and 0.8% for food and staples. when you look at the indexes and how they performed overall through the trading day, if you look at the intraday chart of the dow, s&p, and nasdaq from a large irish, but for the most part finished higher and solidly higher. lisa: interesting that we did finish higher. but again to joe's point, it is interesting to see that there was not more of a reaction from markets to the end of the closure. joe: interesting. scarlet: absolutelyscarlet:. joe: sorry. was going to note nancy pelosi saying the state of the union is not plan. there have been questions whether that was going to go ahead because it had been canceled. at the moment not currently planned. scarlet: we will wait to see how that develops.in the meantime

, let's stay with the markets because we are moments away from the close right now so let's take a closer look at the action today with our markets reporters. lisa: thank you. i was looking at what was going on in europe because this is the big question mark in my mind. take a look at german business confidence, the lowest in three years. you can see the white light here is the business climate in germany. the blue line is the pmi, the manufacturing data. both slumping substantially.this is the big wildcard. i want to take a look at a surprise, the economic surprise index for europe and the u.s. the divergence has been marked. --is the widest diversioce widest divergence. the economic surprises in europe have continued to decline. so really, a tale of two regions. this really is for me the wildcard in a global economy

that does seem to be slowing down. abigail: the airlines caught my eye earlier, especially on the headlines around the disruptions of flights of some of the east coast airports, including laguardia. a mixed market that we have.that was true after the headlines . american airlines and delta higher.american airlines nicely higher after reporting a strong quarter yesterday. just started out higher on the day in the headline cannot around la guardia around 10 a.m. this year's went down and then up. not entirely clear why that would b. included could be because they have some of concentration to new york in florida. but the interesting thing is their domestic capacity is exactly the same as american and delta, around 70%.alaska has 100% domestic. down 3.5%. very interesting to note that into this, the ceo of jetblue sent right now we are at a tipping point around the

shutdown rallies into the airline.alaska air group noted that pricing coming out of december and the shutdown was starting to get wobbly.that is not true for the stocks . this matches the government shutdown from december 24 on a trading standpoint until today. what we are looking at here in blue, we have jetblue leading the way. in yellow, the s&p 500. . and then in orange, the airlines -- laggingp 500ing the s&p 500 overall. joe: if you are trading u.s. stocks this week, this is probably the first week in three months you could have taken off.the s&p 500 is down about 0.4% this week. that is the smallest absolute value move since mid-october. what we have here maybe a little bit of a calm before the storm because you will want to rest this weekend. next week's calendar is absolutely jampacked. earnings from apple, amazon,

facebook, brexit shenanigans, the fed on tap, and then payrolls. what you see in the volatility curve is one week volatility at a pretty big premium to the one-month tenor. that shows you just how big next week is expected to be. it might snap us out of this kind of stall this week. joe: thanks. can't wait for next week. starts are paring the first week decline of the year as investors look to president trump's announcement of a deal with u.s. lawmakers to reopen the government for three more weeks. now for more, let's bring in sarah. end topretty dramatic the week. what is your takeaway? sarah: coming out of the week with a bang. the most notable move we saw today was really after we heard about laguardia.but we have seen a bit of paring some gains since they announced the three weeks.and that begs the question , are investors saying why only

three weeks? why did you just give us something more?this is kicking the can down the road . in three weeks, we will go back to the government being shut and the talk of what this means for the economy, gdp. so now it is really three more weeks just waiting around and seeing what happens. joe: fun. scarlet: the camtek it for three more weeks. three minutes to go before the close.let's bring in omar aguilar . why didn't the market we are to the announcement that the government is reopening, even if it is just for three weeks? because we are seeing a breakthrough. omar: i think the market has started be a little bit in disbelief of anything that happens politically. i think they started to realize three weeks is really not a lot of concluding evidence that something is really going to highn and that there is a level of likelihood we will end up with another shutdown in three weeks. i think what we saw this week is

more people focusing on earnings, focusing on what the fed might do, focusing on the europe, and trying to dismiss a little bit more the political component until we see more clear evidence of two things. one, the government shutdown for sure. two, negotiations with china. lisa: i want to pick up on what you are saying focusing on the data out of europe. if that is the case and it would make a lot of sense to me, why are things not more negative?the data out of europe is not good . questions about whether the ecb has run out of ammunition to counter the slowdown there. omar: that is a great question. we probably saw the same thing for the general market in general. we all know and happened talking about the fact that we are in a global deceleration of economic growth. that is something we have discussed. we also discussed that in particular europe is going through a very soft patch. the data that we saw this week was clearly not very good. however, if you recall, december was a disaster.it

was a disaster for global equity markets where after christmas thatwe saw that lift off is more a value driven bargain hunting type of environment where things were really oversold. and i think we are still seeing the tumbling of that part of the market going into this year. i think a lot of the bad news out of the economic deceleration in europe were pricing prior to the end of the year. joe: next week, huge week. rundown.what are you most interested in seeing ? sarah: if i had to choose one. lisa: you do. sarah: clearly i have to choose one, but i would say the trade meeting because this has been so anticipated. we have been leading up to this moment in a way, the higher-level talks between the u.s. and china and the vice premier coming to washington.so it will be interesting to see what comes out of these talks, but it is hard to say that will stand up against some of the big earnings like apple and amazon and facebook. lisa: i got to say the earnings from facebook in particular will

definitely be interesting to see , especially with mark zuckerberg under pressure. scarlet: as we get ready for the earnings from you have a market closing higher on the day.and for the week , we are still looking at a lot of wobbly-ness. the s&p adding 0.9%. the dow gaining. we did not close our highs. there was a lot of gyration with the announcement the government will be reopened, albeit for three weeks. you have a lot of earnings in focus. butl had disappoint results then american airlines had solid results and got a big pop. abigail, get started. abigail: 500.

this is a weekly chart of the faang trade. we see the uptrend over the last couple of years. the trade was above the 50-week moving average, buyers were in control. when the faang trade dissolve last year below that average, now on this first down week in five, it is hitting that 50-week moving average. out ofs you the quarters facebook, amazon, and alpha that make or break whether they can go through resistance, or the sellers will take the stocks down another leg. >> that is a perfect segue. , we areook at it leading higher with tech stocks, up 7%.

what is different is the lack of enthusiasm. right now these two are canceling each other out. despite the fact the nasdaq 100 is above its 50-day moving average, doing well, no enthusiasm, no euphoria come in no crazy buying -- euphoria, no crazy buying, that is different. look at the te differential with procter & gamble, the nasdaq 100. proctor and gamble still trades at a premium. week, i think you will see that change a little. >> i want to keep focus on venezuela. it has two people who declare the right to be president.

to nicolasger maduro. in 2028, debt maturing you can see that big pop as people forecast a regime change it is interesting that there has been a cooling off of enthusiasm. i was speaking with pimco today. it is likely for this rally to fade, because it will take a long time for anything to change to improve the economy there. nicolas maduro has been off as a long time and has the military, how he will get out of the office that quickly without a conflict. >> thank you to our markets team. still with us is our guest from charles schwab. a bumpy week this week.

you could make the argument the new year rally has stalled. we are down from where we were a week ago. where does that leave us when we anticipate the big earnings reports? >> we are in for a roller coaster ride. the volatility has not shown up as much. this week was the beginning of what we could expect as a volatile next few weeks. we will see a lot of tailwind from the fiscal stimulus, but it is probably the end of it. a softral, there will be outlook for most companies, thinking there will be a deceleration of earnings. take that will information as it is. for capitalng that companies

drove, we should expect that to slow down, and that will bring volatility for the entire market, and within these sectors. >> i want to continue on tech. we are looking at the big tech earnings coming up. until last year, incredible exposure to tech, over concentration. the stocks got obliterated at the end of the year. where do you see things now? are people still aggressive, some paring back to do? >> in general, investor sentiment has turned from very positive to being more cautious. in therall sentiment market is to plate more defense, which will be to reduce technology exposure over all. when you think about earnings,

the whole tariffs and situation has an impact on semiconductors and areas of manufacturing that will play into the earnings season. we should not avoid the fact that in other parts of technology that we will probably see it in the earnings report. >> we have a lot of tech earnings next week. we are also getting the expectations of trade talks. how about the fed? how much are you paying attention to this meeting next week? >> that is the best question in a couple of weeks. central banks have continued to be one of the main drivers of volatility, or not. are they going to play a big role? mario draghi, even though the data suggested it is not looking good in europe, his commitment

was they will be there to support markets. i think the fed is doing the same thing in the u.s.. not changing the rate next week, but what they will put in their ford outlook. the idea of being flexible and not being on autopilot, and trying to remove this idea it will be quantitative while looking at the data, it is something the market has priced in. the idea theal is fed may end its balance sheet unwind earlier? at the december fomc meeting, that is what everyone is fixated on, that it was on autopilot. >> it goes back to the idea of flexibility. we know the mandate that the fed has come up with a but they like the stability of financial markets. december had an effect on the way the fed looks at their

balance sheets, because they were creating a lack of liquidity that was exacerbating the volatility. the fed doesn't want to end on a negative note. , alsotalk about the fed comments from the ecb to date talking about a more dovish stance going forward. do you see stimulus from other parts of the world? china, whether they can get traction with their efforts to revive the economy. big questions over europe. does it have to be on the fed? the world will probably need to figure out a way to stimulate economic growth. we are decelerating in areas that have not been as successful as the u.s. economy, clearly

they are at risk and could jump into a recession. however, for this particular year, what we will see is more fiscal stimulus. rather than monetary policy changes or changes to become more flexible or accommodating in terms of central banks, we see the regions, countries, become more open, including china, where i would not be surprised if we see a significant amount of packages going into china to stimulate growth. we haven't mentioned the jobs report on friday. we have some data come up but not as much as you would expect because of the government shutdown. nonfarmensus is for payrolls to increase 160,000 for january after 312,000 jobs added in december. what happens if we don't get

160,000 and it is lower than that? >> the market continues to believe the hard to data. even the slow amount because of the government shutdown still suggests that, as of today, the economy in the u.s. is solid and stable. usually the first quarter tends to be very noisy in terms of economic data. i don't think the market will overreact to a small missed or a better number. right now, what we think will happen is sentiment will drive, sentiment and earnings will be the big drivers of what we see, because people understand that hard data is probably ok and even if we miss a couple of points -- >> the sentiment has been for the market to go up. omar, thank you so much. that does it for the closing bell.

"what'd you miss?" is next. from san francisco, this is bloomberg. ♪

>> live from bloomberg's world headquarters in new york, i am lisa abramowicz. >> i am joe weisenthal. of how is a snapshot stocks closed today after a mixed week. we did see again, the dow leading with .8% gain. >> the question is "what'd you

miss?" >> kicking the can down the road, president trump agreed to end the shutdown for three weeks with no money. and juans maduro guaidó spoken dueling press conferences. , facebook,in microsoft, and amazon report next week. >> now, after 35 days of furlough, president trump and congress reopened the government. it came with a copy out, it is condition, iteks -- how the ou is only three weeks. >> let me be clear, we have no choice but to build a powerful wall or steel barrier. if we don't get a fair deal from

congress, the government will either shut down on february 15, again, or i will use the powers afforded to me under the laws and the constitution of the united states to address this emergency. >> for more, i want to bring in kevin cirilli and michael steele. i want to start with you, michael. what does it do to the trust president trump enjoys within his base that he has yet to deliver on a wall and he did not show himself to be a negotiator able to break the unity of the democrats. >> i don't think it is a good sign. if you want to run for reelection in 2020, arguing promises made, promises kept, you can point to tax reform, a

strong economy, a fundamental reorganization of foreign policy , but this is a big black mark, a failure to build and expanded physical barrier along the border. during these three weeks, there are places at the border where a fence or wall makes sense. there are places the democrats and republicans have voted to do the, but we will not build equivalent of the great wall of china along the rio grande. >> kevin come in here. people are saying nancy pelosi won and president trump lost. what is the tone like among republicans on capitol hill right now. beenmocratic staffers have saying this is a huge win for speaker pelosi.

the president and the white house this morning suggested they would not yet on board with a short-term agreement unless it included a down payment for the wall. sot we heard an hour ago or from president trump in the rose garden was that he would be agreeing to a three-week extension with no down payment on the wall. he also had a political threat. he said he will not hesitate to shut down the government again in three weeks or to use emergency powers. whiteessure from house staffers and republican aides on capitol hill, they were under incredible pressure today as the situation escalated with the mueller investigation surrounding the indictment of roger stone, then an hour and a half later, the situation at laguardia airport, newark airport, and philadelphia airport further added to an

increasingly volatile situation. , as is the president michael steele just pointed out, who really had his hand force by speaker policy and mitch mcconnell. -- speaker pelosi and mitch mcconnell. >> the wall itself did not resonate with the public, the broader public, as much as some folks would have wanted it to. , whatepublican strategist is the next big issue the party should focus on as we get deeper into the year and get past this wall debate? >> i hope we can come up with something sensible, ideally bipartisan, that will make a difference, make the american people safer, and then we need to start thinking about economic issues, dealing with infrastructure, with an economy doing really, really well, but there could be danger signals ahead on the horizon.

i think that will take the complete concentration of republicans and democrats on capitol hill. >> what should we be watching over the next three weeks? >> they are still worlds apart. i had a briefing with the freshmen members of the republican caucus who said they are all in on the wall. 35% of the american public agree with president trump on this, and they are not going anywhere. you have speaker pelosi and progressives who are unified and don't want to hand a victory to president trump. play this out beyond the deadline, the debt ceiling, a chinese delegation to negotiate the u.s.-china trade deal, and beyond that, there is the volatility we could see with the mueller investigation, and vietnam, the president is heading to vietnam. this will only continue from an

economic standpoint. i have my eye on next friday. take a look at the jobs report, not just the number and whether ,he shutdown impacted the rate but look at any other indicators the trade tension with china and the situation in south america, if that is having any impact at all with some of the uncertainty from employers. >> thank you so much. kevin cirilli and michael steel, we appreciate your insights. a lastingrlough have impact on companies looking to go public in the first quarter? we will discuss that next. from new york, this is bloomberg. ♪

>> time for a look at stories training across the bloomberg universe. credit suisse hit a bump. the bank lost $60 million in canada goose after underwriting a share sale. it is the end of the era for the rothschilds and austria. the family is selling its last piece of land in austria, valued at $100 million. it has agreed to sell 17,000 acres of forest it bought in 1875. tictoc reporting on senator warns supposedly attacks on the ultra wealthy. she wants to let the attacks of over americans with assets $50 million, while those above

$1 billion will be taxed at 3%. it could raise nearly 3 trillion dollars over a decade. president trump and congress have reached a deal to reopen thefederal government, but shutdown bumped against a major deadline for companies looking to go public in the first quarter. today is the last day for those hopefuls. let's bring in our deals reporter. let's start with this idea, let's say the sec reopens in the workers kobach monday morning, for the companies in the ipo a relativelyy have small window for the sec sign off. >> that's right. we are watching february 14, the last day companies have to price their ipos by without having to update and get new financials.

these are companies in the pipeline for the first quarter. they have their financials ready for the first nine months of last year. they have to go back again and get the following three months, and to get them audited would take more time, so they have to price by february 14. it is a tight window to market this to investors and list by february 14. >> how many companies are in a position to do that? >> i was talking to a couple of sources. >> she was still on the phone right before the camera came on. >> i know. it was a close call. everyone will be scrambling next week. they have used the past couple weeks to get the documents ready. the s&p is not a factory. they can't put on extra shifts or extra workers.

yes, a bunch of companies in the pipeline, but it would take a while. uber,lth care, lyft, whether they can go in the first half remains to be seen. >> what specifically does the sec need, what role do they play in an ipo? withthing else happens bankers and other stuff. what do they need for an ipo? >> they sign off on it. we have seen your financials. we think they are fine. go ahead and list. this workaround is a 20-day period where they can file the numbers, but don't get the sec signoff. these are what are financials are looking like today. we will list in 20 days.

typically, the sec likes to sign off. they like to get the signoff before they price. >> have companies tested that road yet? >> one company this week is going down that route come a but we don't know how that will turnout. , if anything changes, they have to file an amendment that restarts the 20-day clock. this is a reprieve. we still don't have a shutdown deal. >> i'm sure you will be getting back on the phone. think you -- thank you for being with us. tothe u.k. says no can do pull $1 billion in venezuelan gold. we have all the details. perhaps venezuela has gold, but getting it out of the bank am a forget about it. that is coming up. from new york, this is bloomberg. ♪

>> i am mark crumpton with first word news. president trump agreed to reopen the federal government for three weeks without any guarantee congress would provide money for his border wall. thereby, he capitulated to speaker nancy pelosi. courageinspired by the and the determination of america's workers. they have shown such strong nonetheless, they have to pay the bills when they come due, whether it is rent, mortgage, credit card bills, car payment, the list goes on.

some didn't have cash or credit ability to put gas in the car to go to work. >> president trump threaten if a final deal is not include money for a wall, he would shut down the government again or declare a national emergency that he says would allow him to begin construction without congressional approval. roger stone says he believes his arrest and the russian probe was politically motivated. he is promising to plead not guilty and fight the charges. stone spoke to reporters after he was released from custody in florida today as protesters tried to drown him out with shouts of, loch him up. he says he remains " a fervent supporter of president trump." thereave said previously are no circumstances whatsoever

where i will bear false witness to the president or put pressure on myself. i expect to be fully and completely vindicated. >> stone is charged with witness andering, obstruction, lying to congress. he was released on $250,000 bond. after ale are missing mining dam collapsed in southeastern brazil today. one area was covered in british-brown liquid waste. evacuatedhe city were and firefighters were risking people by helicopters and ground vehicles. the president said he was sending three cabinet ministers to the scene. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> the battle for the presidency

in venezuela has taken a major spot on the global stage today. on the small screen, nicolas maduro and juan guaidó spoke in dueling press conferences. maduro dominating traditional airways, while the opposition leader streamed on social media. for more, let's bring in the director ofic council latin america. thank you for joining us. what are you watching for next? dual competing claims on the presidency right now. it seems maduro controls the traditional levers of government. tot which you watch for next see who will emerge with real power in venezuela? the weekend, there are more rallies planned around venezuela this weekend. assumes ago, juan guaidó the interim presidency, hundreds of thousands marched across the country. tomorrow and saturday, a 72-hour

deadline which maduro had given u.s. diplomats to leave the country. mike pompeo said our diplomats will be staying in venezuela. tomorrow morning, saturday morning in new york, a meeting of the u.s. security council on venezuela. i will look at that meeting to see what pledges will come from countries around the world. , as well as remarks from spoiler such as russia, china, and others. about the heard pressure maduro is getting from the u.s. and other latin american countries, but china has invested billions of dollars in venezuela, a pretty tight relationship with russia with regards to supplying military equipment, and the trade relationship between turkey and venezuela has brought in. how do those three countries factor into what could potentially happen next? >> that is an important question.

what is happening in venezuela is not limited to within venezuela's borders. there is a broader geopolitical, geostrategic lay at hand, and venezuela is in the middle of it. russia, china, turkey, have all continue to support maduro, as have others, while all the major democracies in the americas except for mexico have lined up their support for the interim government. movelooking at what next russia might play. a continueddiscount disinformation campaign. the russians are, unfortunately, good at that, within venezuela, trying to dominate the cyber waves there. russia sent two bombers to venezuela and a show of force. a largeexpecting military presence from russia

and venezuela, but there are provocative acts they can take to shore up support for maduro. what is the tipping point at which we have to pick between president maduro and guaidó? we have these two presidents come of the military is behind maduro, the u.s. is behind guaidó. what will force their hands? >> it is unclear if the military is holy behind president maduro. the military brass has made statements in support of maduro of a but it is unclear what the sentiment is in the foot soldiers in the barracks. these are the same people struggling to put food on the table for themselves and their families, so it is a question of where their allegiance goes, and with secretary pompeo pledging assistance, folks in the military are hearing that, as our venezuelans. we have guaidó, interim

president of venezuela, major democracies increasingly recognizing him rather than maduro is the leader of the country, and the key will be the security situation and what action the military takes, and frankly, a continued, coordinated international response in support of guaidó and his interim government. >> i want to ask you about the u.s. role. , not are critics of policy just here, but lashed out at any attempt to facilitate regime change, that we should not be telling which countries who their leader is. how much is the u.s. a catalyst of what is going on, versus an outside observer who supports guaidó? >> the transition in venezuela is a homegrown transition. the venezuelan opposition have long been looking at january 10 in which he isay

no longer legitimate because of the election. the election was deemed internationally as fraudulent and illegitimate given that he barred opposition candidates and parties, didn't allow election observers. , an was long planned opportunity for the opposition ability toassert its provide for a democratic transition. the constitution allows the assembly to assume the interim presidency when the office of the president becomes vacant. this is a venezuelan effort within venezuela, the first country that recognize the new interim government was paraguay. the u.s. was not the first country, one of the first, but not the first. the u.s. leadership continues to be important and showing

international solidarity for the guaidó presidency. >> thank you for being with us. i want to bring you some breaking news. a stopgap has passed funding measure to temporarily end the government shutdown. president trump is expected to sign off on that measure. coming up, earnings from apple, facebook, and amazon on tap next week to what can investors expect? we will have a preview. this is bloomberg. ♪ ♪

>> the last day of the world economic forum come the annual gathering of world leaders in politics and business in davos. slowing growth and the health of the financial sector were among

the topics. one founder of the hedge fund spoke with erik schatzker about why he finds banks and high yields less interesting. >> they both got interesting in december. they are less interesting now. don't dropesilient, as much, different buyers and sellers. you had the bank debt market drop four or five points in december in the face of the largest six-weak outflow in that history of the bank debt market. high yield has had outflows all year, although less issuance. the drop in high-yield, we know about the mutual fund liquidations, where as much as 15 points. more totalive you return opportunities when you find somebody who is a force to seller, but the bank debt is interesting too. >> you like to move quickly, be nimble, how much money did you put to work? debt,ut $1.2 billion in

and some additional money in equities, so a touch under $2 billion. not the same magnitude as what we put to work in the prior downturn at the beginning of 2016. >> why is that? there were not enough force sellers? >> some of the money was not in the secondary market. some was helping banks making commitments that got stuck with paper relieving those it wasions, but some of working directly with issuers who wanted to do a deal. not only was the downturn severe in bank debt, but in high-yield, it was the first month in 10 years with no issuances. you had to find another bond if you wanted to issue upon. >> is there enough demand to soak it up now? about thingsical

like maturity walls and massive supply into the market. see egos and principles and so forth are usually smarter than to put themselves in i a position where their walk into a wall, but there is a fair amount. away, and deal go that was a big chunk of supply. do i worry about the triple b mountain they could get downgraded? yes, i do, but i would not say it is first on my list. >> what is? inwhen the market goes up the fed feels like they can find it raise rates again, then everyone gets scared and you have this immediate panic about supply-demand, particularly if people are worried about the fundamental economy at the same time. >> there are not that many interesting situations, but there are a couple. tell me your view on pg&e. >> pg is interesting, particularly in the debt, but

-- pg&e is interesting, particularly in the debt. if you look at the bankruptcy of lehman brothers, there were many opportunities and the case took a long time. there was value at the beginning , but waiting was far able because you could invest with more certainty about the process. puerto rico has taken a long time. there have been plenty of opportunities to enter. in the middle of it, some issues that affected the price of the securities dramatically. any of the large ones, this is the case. >> you are waiting? toe in.ve dipped our we will wait and be all over that one as it takes place. >> what about ge? >> ge is really ok. opaque.

you could argue the equity is more interesting is it has the optionality, upside. if the debt turns out ok, equity has a huge return, but the debt isn't cheap enough to be interesting at this point. >> that was josh friedman speaking with erik schatzker and davos. the business flash headlines. mark zuckerberg is asserting control over the company's sprawling divisions. integrate facebook's messaging service. operate as standalone apps, but their infrastructure will be united. managerslling wealth in europe and asia to expect a bonus cut of 20% for 2018. the bank is keeping expectations low after a bad stretch. the wealth management missed estimates in the fourth quarter.

j.p. morgan says bitcoin at the current price is worth less than the cost to mine it. the cost average a little more than $4000 in the fourth quarter. the digital currency is trading below $3600. there is a big spread around the average. low-costiners can find electricity, so they only pay $2400 per bitcoin. that is your business flash update. fromg tech earnings facebook and amazon coming up next week. investors will be watching closely after netflix posted disappointing results. our with a preview is technology editor joining us from san francisco. big heavyweights next week. let's start with apple. we have obsessed about iphone -- sales,etoo much

too much or not enough. >> we are looking for a decline in sales. they need people to come out and buy iphones. januaryarly part of they come out with the warning that said sales will not meet expectations, so analysts took down their forecasts and estimates for how well apple is doing. , soe is a big bellwether that sent reverberations through the supply chain. what apple is experiencing is a combination of things, slow down in china come a of the smart phone market, pricing of its devices in the chinese market at a time when chinese domestic es of smartphones are releasing their own smartphones at a lower price. huawei, forike whil

example. we will look for signs of how deep and lasting the smartphone -- will last. >> let's talk about the exposure tech has to the general economy. you hear earnings recession, everyone predicting a slow down in the but some of these companies, their secular, individual stories are so incredible that they are expected to keep growing in any economic environment. who is most exposed to a general slowdown where their story can survive if the macro conditions are deteriorating? at a timerom apple when people are not willing to spend as much on devices, that is where apple needs to introduce lower-priced handsets. amazon is another interesting example. they released a forecast in november that some people thought doesn't sound as good as

we would like it to be for amazon. this company that is a bellwether of e-commerce, that we have seen other companies doing, retailers, brick-and-mortar retailers, not a great quarter for them. if amazon comes in with lighter at a time of shows economic slump that they cannot come through and deliver results. >> i am wondering, sticking with amazon, what happened to whole foods? why don't we hear anything about that purchase since then or the build out in the grocery sector? >> amazon has been offering perks for those of us who are amazon prime customers to incentivize us to come into whole foods. what we are hearing a lot about whole foods is do they have the selection we want? do they have enough of an inventory? amazon likes to keep its inventories lean.

they are having complaints from people going into whole foods and not finding the products they like. amazon is a big electronics maker as well, so you're seeing amazon echo, amazon alexa available in whole foods. i don't think whole foods will be a make or break set of results for them this quarter. when you will see more and more from amazon is how are they doing on the electronics and how are they doing in these other areas thaey are getting into. >> thank you. ,> some breaking headlines roger stone, who did work on president trump's campaign, has been scheduled for a hearing in washington, d.c. on january 29. he will be arraigned tuesday in federal court in washington, so we will hear more from that. coming up, can't afford a

ferrari? how about buying a share for $60 or $80? during millennials into the car collecting industry. wow. this is bloomberg. ♪

for classic cars is open for business. it let's people trade shares of blue-chip cars as they would any blue-chip stock, but in a creative way to bring millennials into the car collecting industry. here is our luxury reporter. despite having the best title in journalism, tell me more about this. i this some novelty where want to say i own a fraction of a share of a car, or a legitimate way to invest in classic cars? >> both are true. it is a novelty. it is the first time it has been related to an app, where you can

buy a share in a blue-chip car. the people behind it came from finance. they came from a trading background. they do know what they are doing. it checks out. several analysts at bloomberg say it is an interesting proposition. we will see how it works. >> classic cars have done well historically as investments. isn't it bell ringing at the top when anyone can buy with an app? >> yes, that is fallin. the idea -- is valid. it appeals to younger people. who grew up with a lamborghini on their wall. affordy not be able to it or drive it, but they can buy a share and say i have a part of it. >> why not have an etf? is this coming because generally among millennials, not to

overgeneralize, there is less significant interest in owning and collecting cars? >> that is fair. a communityto build where you can talk about it with friends, trade, and share, a different way of approaching the love of cars. yeah, it is kind of weird because there is no driving involved. market ifuid is this i buy as share and want to get out? >> that is a valid concern. every month, and open trading window. you hold onto it for one month. millennials not liking stocks and wanting to feel like they own something real? >> it is tangible, feels real costs of that is the appeal. >> who knew? thank you so much. we appreciate that. that is all for "what'd you miss?" >> bloomberg technology is next.

>> have a great weekend. this is bloomberg. ♪ ♪

♪ emily: i am emily chang in san francisco. this is "bloomberg technology." coming up, president trump announces a deal to reopen the government for three weeks, ending a 35-day shutdown. we have all the details. mergeok plans to whatsapp, instagram, and facebook messenger. good the move unsettle