in mar-a-lago, probably very soon. we have tee up schedules, and we will be planning that with the schedule. he's taking his own chances. >> were used down with huawei and zte echo -- zte? president trump: cte paid a fine that nobody has ever heard of before. about it, welking may or may not include that in this deal. huawei and zte. we are going to be discussing all of that during the course of the next couple of weeks. at -- talkingking to the attorney general. right now it's not something we are discussing.

i think they will stick. we need a wall, we've apprehensive more people than we have in many many years. with a wall we wouldn't even have to apprehend them if we had the roughest structure. we have a lot of military there. we have tremendous border control and border security. people of vice, the law did an incredible job at the border, we have caravans heading up and we are able to head out the caravan. if we had the wall it would be much easier. frankly it would be a job that would be perfecto. it would ultimately cost a lot less money.

>> you said yesterday that the u.s. would not drop out -- president trump: i'd like to have all companies be able to compete. i don't want to artificially lock -- artificially block people out. wait, i'm talking about everybody. i don't want to use artificial blocking. g --nt to have great five g,, and great 6 which we want to have in the future. i don't want to block out anybody if we can help it. if there's good to be a security reason, we may have no choice. we want to have open competition. we've always done very well in open competition. you mentioned a deal on

currency. explaint trump: we will them in time. we have a deal on currency and currency manipulation. will i veto it? 100%. and i don't think it's survives a veto. we have too many survive -- too many smart people that want border security. i will veto it. >> [indiscernible] i stoppedtrump: paying pakistan the $1.3 billion we were paying them. in the meantime we set up some meetings with pakistan. pakistan was taking very strong advantage of the united states. we were paying pakistan 1.3 billion per year. that with pakistan because they weren't helping us in a way they should have. developed a much better relationship with pakistan over the last short period of time.

we were paying pakistan $1.3 billion per year. i ended that about nine months ago. >> [indiscernible] president trump: what are you talking about? what are you trying to refer to? you have to speak up. >> [indiscernible] president trump: it's a terrible thing going on right now between pakistan and india, it's a very bad situation and a very dangerous situation between the two countries create we would like to see its top area -- it -- it stop. india is looking at something very strong. people.almost 50 talking.people are

balance goingte on right now. a lot of problems between india and pakistan. are you talking about cashmere? it's very dangerous. >> are you putting an executive order on huawei? for cap we may not put that in the trade agreement. trump: wepresident may not be putting that in the trade agreement. that's a matter of outside of what we are doing. ofhink it's a question whether or not that is being included in the agreement. i think it's a big loss for new york city. the deal was not a great deal from the standpoint of it could

have been a better deal than that. i think it's a loss for new york city. it was a form of taxes over a period of time that they will now never see because they were going to take in jobs and a lot of taxes. loss in new a big york city. ultimately it's not good for jobs and new york city. i think it was a big loss for new york's 80. best for new york city -- for new york city. trump: i'm getting a final briefing in about two hours. i think it's a shame. it's a very sad thing when a thing like that happens. i'm giving a complete briefing in about two hours.

i think my language is very nice. >> trade conflict has been going on for one year. what do you think? president trump: we have great cooperation, both ways, with china. deal,re going to make a they aren't going to make a deal, they have no idea. it's fake news. to they have fake news in china? i thinks. both parties want to make it a meaningful deal. i can speak for the vice premier, i can speak for myself.

not a deal that is done and doesn't mean everything that mean anything. we want to deal that is meant to be good for both countries. china has the advantage of many years of tremendous success at the united states. china for that. our leaders have done a lousy job with trade. our country lost $800 billion with trade last year. said sameremier agreement should have been made 20 years ago. for 20 years the united states has been taken advantage of it i'm not blaming china. we have presidents that didn't do their job.

i think the mru is going to be very short term. to me they don't mean anything i was never a fan of an mo you -- anything. i was never a fan of an mou. >> it's an actual contract between the two parties. a memorandum is a binding agreement between two people. detail, it's great just called a memorandum for a legal term. it's a contract. contracts last while they last. president trump: i disagree, i think of narendra modi understanding -- i think a memorandum of understanding is

not a contract that we want. we have a memorandum of understanding that will be put into the final contract. to me the final contract is really the thing that means something. isemorandum of understanding exactly of that, it's a memorandum of what our understanding is. , soreal question is about we do in memorandum of understanding. how long will it take to put that into a final binding contract? >> no one will ever use the term trade agreement. it should be called a trade agreement. president trump: they're going to put that in another -- >> [indiscernible] assuming you decide on an agreement it will be signed by the two people --

president trump: i like that term much better. i wouldn't go into a memorandum, i would go right into a trade agreement, is he going to make a deal or is he not? it's not that meaningful in my opinion. >> what do you think needs to be meeting?r i can tell you: the nordic city housing authority, the new yorker has a terrible job with public housing. they have done a terrible job with respect to public housing. we get reports back and it is a disgrace how bad new york city handles it public housing. i think he has to start running new york city before he starts running the country.

we have had such a great relationship. if i were not elected president he would have been in the war with north korea. he had a situation where the relationships are good. no nuclear testing, no missiles are rockets. we have many of the remains back or coming back rapidly. the remains of the great warriors many years ago. singapore was a tremendous success. atwould have literally been a war with north korea, had i not been -- thank you very much everybody.

thank you. i think it will be successful. i don't know anything about the situation, when did they announce that? we have to take a look. i haven't spoken in a long time. thank you very much. wide ranging press conference on relationship with new york and amazon on relationship of india with pakistan, and the relationship with the u.s. and china. it felt a bit more optimistic in terms of the notes coming out of there. it seems optimistic about whether or not a deal will be struck. it seems as though trump was

referencing -- interesting division between the trade the meaning of a memorandum of understanding. it was wide ranging. i thought the division between his own trade negotiators and trump was pretty notable. what do you make of the tone coming from lee her and president trump? >> it appears more optimism following these negotiations and his senior cabin officials as well as u.s. trade representative bob lighthizer. three areas of new development. secondly on currency, the u.s. saying they have finalized a deal on currency with china. then the president also saying he is considering using x negative order to restrict the

five g technology in the united states. president trump and president xi jinping could come face-to-face in mar-a-lago at the end of next month. all of this following a host of domestic omission is best of domestic issues. -- host of demented issues. -- of domestic issues. -- we are joined by bloomberg news editor. treasury secretary steven mnuchin saying they had come to some sort of agreement with china on currency. i'm wondering, what could this kind of deal look like? how significant is this?

>> that's the question the whole market is asking. it's going to be important to see how they measure fx movements. want a the market .tronger yuan whether that means a specific level between the dollar-yuan pair or a range. >> the yuan has been strengthening for several months. >> it's a good question. it's clear that this has been an issue or president trump. he campaigned on it. and reaching a deal of this sort on currency would allow him to deliver on his campaign promise. >> there is a question of currency manipulation that's now off the table. >> i would imagine. it's going to be hard to strike a deal with the country on currency. you on all things fx.

up 5/10 of a percent on the s&p 500, a dismal day on record. emerging markets up, this is bloomberg. ♪

♪\ >> it's the countdown to the close. >> we get to see bast joining us. happy friday. what are you watching? cooks all these comments we got from the various that presidents and fed chief, we got the comment from the new york fed tooident who said don't get complacent about persistently low inflation. when her that somewhat echoed by the vice chairman, who basically said the same ring, expectations

are just being anchored way too low right now. you look at the five-year break even. you look at all of these metrics, and you look at a market that is not going to flip the switch. therere going to stay unless the fed tells them not to stay there. >> the comments are being taken as dovish. inflation isn't really going to search and they are going to keep rates low for the foreseeable future. if you read the tea leaves, they say don't get complacent. >> we continue to see bonds and stocks moving in lockstep. >> i think that tells you a lot. you look at what bonds are doing, then you compare that to some of the risk assets like equity. you have a real mess here that some point is going to have to be sorted out later this year.

>> shed some light on what the industries are doing. you have consumer services on the upside. going to be talking about the e-cigarette company. on the downside, let's look at what's going on in the downside is -- downside. >> it's really kind of exposing not just the business model that a lot of these companies have dealt with and a lot of the financial models. i think a lot of people are taking a look at the other companies. i'm an east coast elite.

>> want to again your outperform or does tend to be what happening in terms of the nasdaq. we are up about i've tenths of a percent -- about 5/10 of a percent. we have a caution about whether a deal will be done. >> i was watching bill a-shares, which surged more than 25% today. this after the company said it was going to bring back its first ceo. the idea here is they are going to try to have some homebuying plan that is potentially an opportunity, but potentially something that could be a problem. this is the issue if you dig under the covers here. zillow's revenues have them plateauing at best. they have been posted losses since the adjusted earnings.

they are expected to be flat next year. clearly the ceo has a big handed tax -- big handed task. >> let's take a look at microsoft. comments, bullish saying that the risk reward mostle is one of the attractive, if not the most attractive. there are a number of others. valuation. at the trading at a similar discount. microsoft's own valuation range. the shares are trading at a discount at their own valuation on a historic basis.

>> it's not just investors in craft. also those who bought into small morethe stock plunging than 50%, close to 60%. $2 billion in market value. this is a company that said it was ending its exclusive relationship with the u.s. post office. to let customers print postage and homes and a discount. company said it was integral to company growth. baffles investors and companies say that earnings will equate it this year. have a deal in order to better compete with rivals like ups, that x and even amazon, they are aggressively going after their customers. it doesn't think the u.s. post office can stay competitive.

>> meanwhile, cross the benchmarks, all up 5/10 of a percent on the week. let's bring in chief equity strategist. last -- how long can it to last. >> if you look at the last month of highest volatility stocks in the index. the story of the year has been highball has led the surge. i think it's symptomatic of the fact we have rebounded nearly 20% from our lows. growth, where is

the sustainable gains going forward. it certainly is creating a little bit of a market flavor. >> you are staying with us. i want to bring in chief equity derivatives strategists to also way in. a positive this high data trade that sends and turning tor more specific company stories? >> it's entirely possible the broad market is going to pause. the work we've done indicates when you've had a thrust up, but we had essentially in the start of december, as strong as they have in. that having been said, if we are wrong about that, it's not

because there is not going to be a new leg in the market, there is such a distinct underway that we are going to continue higher. >> there is an idea or through we still have to reach at that reach out some sort of technical level below where we are today before we get that next leg up and we see cash move back into the market. >> again, it doesn't necessarily have to be the case. what was interesting about the fourth quarter of last year was that it was outright liquidation , hedge fund deleveraging. the reason we know it wasn't hedging was because the price input didn't increase, it actually decreased downside protection. people were liquidating even their protection. that perspective started the year grossly underweight whether you are a hedge fund, and we

sells that we still see that as a catch up once the market went through the first resistance at 2600. the move up was as dramatic as it has been. you are approaching a level of around 2813 that should be resistant. if we are wrong, it's because the markets are going to continue to blow through it. >> are we seeing any key barriers in the next leg higher. >> it's around the number resistance. a lack of a better term that we have in the fall month. all of a sudden more capital is drawn into the market. there is a lot of negative sentiment, a lot of sex -- a lot of skepticism. flows are still hasn't close to

the equity universe. quality flows. passing any sort of risky flows. that sentiment alone could really risk it. >> the focal smart money catching up. we see tech outperform and twitters in particular are the key movers of the day. lisa: we definitely see the rally extend today. .ech is leading the charts maybe we will see a reversion back to that. caroline: abigail, what are you watching? abigail: the dow was doing something pretty impressive on a weekly basis. up for a night we can row, the longest streak for the dow going back to 1995.

this is 1995 and we see it was a relatively slow climb up, about 10%. this climb is tremendous, up about 19%. this is after the current bull market reached the longest bull market ever. the tenure of these two climbs are very different. this top panel looks a little volatile. it will be interesting to see if there is another whipsaw back down, lisa. lisa: we were also getting headlines on petroleum many condo -- petroleum mexicano. said they will probably have to tap the market next year. bonds andnse of the yields, and how much they have increased over the past few months of people pricing in a weaker outlook for the world.

most indebted oil company. they have $100 billion of debt coming due in the next few years. it's definitely something to focus on, given the fact this is such a main driver of economic activity for the entire nation of mexico. >> i've been looking more thinking about what the big boost in consumer confidence was -- consumer confidence might mean for companies that we have not heard from yet but the reporting next week. this charge we have here shows a spread between those that think the economy is going to get worse, and those that think it will get better. americans are getting a little more confident. if that translates into spending, that could begin news for the retailers. we heard from walmart this week.

they kicked off earnings season, and we hear from more of them gap, home depot, best buy, and macy's. macy's already preannounced it is supporting holiday quarter -- a disappointing holiday quarter. caroline: thank you for joining us. i want to get your take on the fed speak becoming thick and fast. one reason the market has been driving higher is the fed changed its tune. what are we seeing in terms of the trade in the back of that? >> no doubt that the fed changing its june in -- tune in january and reinforcing it in late january is apostate -- a positive for markets. it's a positive for china. they are trying to ease as well. on a comparative basis, that is part of the story that cap to their currency as strong as it has against the u.s..

we would like the fed to talk less for the next several months, and let the data speak for itself. they've done what they needed to do. now, let's see of what we think events, the in the downtick in confidence, the government shutdown, polar vortex, causes the soft spot in first-quarter economic activity that is likely to be repaired in the second quarter. if that happens, keep saying nothing. romaine: gina, when you are trying to make a bullish case, when you see the dovish tilt on the fed and -- are we supposed to buy into this? is this all about inflation? particularly looking at economic data, how do you square a bullish stance with this idea that maybe weaker economic additions make be contributing to the tone? gina: i think a lot is because of the economic conditions coming from overseas.

not generating the weakness internally, which is reducing the inflation pressure we are importing. when china and europe slowdown in the second half, that reduced expectations for earnings growth , created a lot of concern and financial market, it has not been as damaging to the economy. it is ticking incrementally away from growth. prices,h and oral relatively constrained -- in oil prices, relatively constrained growth, it is a fine line. growthrt to see improvement if you get something like a trade resolution, which kicked off a lot of this weakness. , in six monthsn time, we could be talking about a fed hiking. you have a market instead of driven by valuation expansion, you will have it on earnings. , the i have to also wonder

fed says inflation and what they are not saying is markets, if you rally, we will hike. if you don't, we will stay put. is that essentially the message here? how much can the markets run without the fed tightening expectations? >> we don't really think that is entirely the message. when you look at it, the equity prices, equity volatility, they are a big part of financial pricing. we got a -- tightening. we got a distinct financial tightening. all the economic indicators and asset prices, the one that gives us most pause are yields. maybe this is a longer-term japan type to an area oh -- japan type scenario. we like to see how those assets developed if there is any good news in europe, which are hasn't

been in quite some time. onoline: how are you worrying about things like brexit? >> we would be less worried about it, probably 10% lower in the s&p 500, but rest of the global markets have rallied as well. as we said earlier, you are reasonably overbought here, so there is potential for pullback, what we think, when you look at politicians worldwide, people will come to their senses and deals will get cut. hoping economists come to their senses, i like your optimism. [laughter] romaine: i want to pivot off of that. we see the run-up in metals -- metals, industrial metals. how do you reconcile some of this with the bullishness we see in traditional risk assets and this many bond rally? gina: i think a lot of this is

oversold conditions that emerged in december on any risk affiliate here -- affiliated assets. werendustrial metals beaten down, commodity prices were beaten down, stocks were beaten down, high-yield credit was beaten down to a certain extent, so everything has rallied back since. we will get to a point where that initial recovery rally is over. then, you start to see dispersion and the lack of correlation in the south markets, i think you see the same thing occur across other asset classes. we rationalize gains. we may correct on some of the asset, and we rationalize those gains forward. lisa: let's take a temperature of the markets, so far, year to date. the s&p 500 is up nearly 12%. long butis if i'm a

don't like it if i'm trying to go short. julian, if we go and get some trade resolution, how much further could this go? julian: you can grind higher off a trade regulation. what is more important to us is, if over the next several weeks, you get less favorable news. we would be really looking to see the market not respond to too much of the downside. our year and price target is 3000 -- year end rice target is 3000. we would rather get there at the end of the year rather than sooner. if you continue higher, there is room for the self-fulfilling prophecy. and 1987.1999 the depth of the selloff in december and the turnaround in the market creates a different dynamic that is potentially powerful. caroline: if you have money on the sidelines, where else are you going at the moment?

we have equities and sovereign bonds seeming to move in lockstep, and gold rallying at the same time. where do you put the money and how does one square the circle? julian: we have seen a lot of money in the last week or two in particular, going to the commodity market. potential vote of re-inflation, and it goes back to china. andhis were the china putting moment we all thought may have happened over the last 10 years, the currency would not be a strong as it has been the last four months. lisa: gina, final thoughts? gina: i can't wait for the weekend. [laughter] reachinghink we are somewhat overbought conditions are crossed risk assets. it doesn't necessarily mean we crashed, and a lot of that is because of sentiment. -- toont is to cautious cautious. lisa: gina martin adams speaking

the truth. thank you so much. julian emmanuel, thank you. that does it for the closing bell. next, we look at heinz disaster day and if there are signs of more on the verizon. where are you bell vida -- horizon. where are you velti to -- velv ita? this is bloomberg. ♪

caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. lisa: and i'm lisa abramowicz. caroline: this is our markets close. up the day, we rallied into friday.

more likely, not president trump and china lead negotiator say the trade you will probably happen is both days jus -- both parties decide to work into the weekend. how a billionaires socially conscious studio has a larger goal. let's get more on the top story. it is trade talks in washington. joining us is kevin's really. for the market take his michael regan. kevin, get a sub to speed with your take away from trump and the chinese representative out of the white house. kevin: finalized deals on agriculture, secondly on currency, and devaluing currency from china, and thirdly, where this goes from here. these talks will continue. the vice premier is staying two

additional days. president trump and president xi jinping could meet as early as next month in mar-a-lago. the bottom line is that president trump also says the huawei issue might be resolved by issue of executive order. the president said in the last two hours he is considering using it more difficult -- using executive order to make more difficult for huawei. romaine: when we got to the headlines, i looked around and we got a little market reaction here and there, but all of a sudden, you look at the offshore bond and see a little more price action. how much does the market really care -- i don't know if that's the right word, but will they move up or down based on what we know so far? mike: this is the outcome people are crossing their fingers and

hoping to get, the best outcome we could expect. lisa: was there an outcome today? romaine: there was a memorandum, i heard. lisa: maybe. [laughter] caroline: one thing they clearly disagree on was what an ammo you means -- mou means. lisa: hold on. kevin, come in here with any -- come on in here. was anything resolved today? kevin: there was no finalization. the issue of mou is interesting because bob lighthizer, who goes way back with president xi jinping in china, is using the issue of mou because he doesn't want to have the administration have to get rational -- get congressional approval by using the word trade agreement. president trump once to use the word trade agreements, but that was a stylistic moment about the discrepancies inside of the ranks. lisa: it was interesting is one

word for it. unprecedented, other people would say. who traded on all of these are rhythms? mike: i wish i knew. [laughter] mike: i think the tone of president trump has softened. he is not banging the table, demanding more concessions and threatening to impose the tariffs at the beginning of march. this is the scenario people were hoping for, as the best case. i won't say outcome. scenario. clearly, president trump's softened, and i think everybody believes march 1 will come and go without the escalation in the tariffs. caroline: we got excited about the huawei element. did anyone in your live blog get excited about it? it's interesting that trump has been waiting to weight into the zte issue and huawei could

once again become an issue. mike: we are not expecting any sort of dropped the charges against huawei. that would be unusual for the president to dictate what happens with a criminal case like this. optimismn't much surrounding that. not a big surprise he is staying away from that issue. romaine: i want to look ahead to next week a little bit. trump is going to asia to meet with kim jong-un. i'm wondering, what expectations should we have for this meeting? kevin: hopefully, that it would continue 2-d escalate the situation. from president trump's respective, you have mike pence on monday headed to columbia with regards to venezuela, and on tuesday, the house is likely to vote on legislation that would rescind the president's

authority to declare a national emergency. the president said within his marks later this afternoon he would veto that. then, you have wednesday and thursday of next week, and chair powell is testifying in congress. president meets with kim jong-un in vietnam, and the d nuclear is asian peace talks -- den

lisa: today was the worst day any s&p 500inz, of companies so far year to date. they lowered its forecast and took a $15 billion assets write-down and announced a subpoena from the sec. it's bad news for berkshire hathaway which owns a lot of stock. let's bring in our reporters. , people are talking about in existential crisis for kraft heinz. do we have a sense of what their path forward is to revive themselves and shares? craig: there are two pieces and both are tricky. the one, they need to think they need to grow sales with their existing brand, and that is

where things like oscar meyer are not very strong. the other thing is people need to buy something else with shares under $40. that's will be hard to do, two. expenses of slashing is really coming under fire. caroline: should berkshire hathaway be raising more questions? in they answers be given information coming out from oracle tomorrow themselves? >> berkshire has a huge interest in this company and wants to see them succeed. he's a long-term investor and has deputies on the board of this company. i think he will have to look at the company a little carefully. the breakdown is a troubling signal about the long-term prospects of the company, but i think overall, he stuck with the company for a long time and could possibly see it go further. romaine: how much is he involved

in the decision-making process? he's famous for being the guy that buys what he likes and the nose -- knows. are these decisions coming from him or is this coming down to his deputies? >> it's a mix of that. board andwo on the the deputies are kind of stepping into have a say, but he does love these companies.

and pushed into mustard and barbecue sauce. they've argued that they made innovations. the oscar meyer write-down cleary indicates that what they did with hot sauce didn't work. people are outside of the center of the store, shopping on the perimeter, and they want organic. that's not what they have here. it would take massive innovation, and that is not what they are good at. caroline: and from the nation -- i'm from a nation built on heinz baked beans. i ask people to bring them from london. --ig: heinz ketchup is 99% in 99% of u.s. households. if you sell a lot of catch-up,

it's a big-time brand, over $1 billion, but where's the growth? unless it's a billion-dollar idea, they don't want to hear about it. mom in herd from a house in boulder, but big food is not set up to take advantage of that. caroline: a terrible day for heinz. craig, thank you. and bmw will invest more than $1.1 billion to take uber and lyft. they want to expand the ridesharing operations. the u.s. ban on the sale of the most flavored e-cigarettes appears to be just a temporary setback for juul. the device isned forecasting revenue of $3.4 billion for 2019. that is almost triple generated last year.

editor business flash update. these things are very popular. lisa: i get people can smoke without leaving the room, which makes it appealing and exit so you can't track the smell of teenagers. my kids are non-smoking, but i think, if you think you back -- think back to high school, people would talk about masking the smell. doh this, they don't have to that. what is interesting, the u.s. is cracking down. the point is, internationally, there seems to be no hit back. romaine: no regulations and the kids love it. lisa: let's talk about pets and how rich they are. caroline: we do that later, but first, we talk about getting president trump a loan and why

north koreans are trying to get a game plan. this is bloomberg. ♪

mark: i'm mark crumpton with bloomberg's first word news. democrats introduced the resolution to block the national emergency declaration of president trump issued to fund his long-sought wall along the u.s.-mexico border. nancy pelosi said the house vote will happen on tuesday very president trump left little doubt about the measure's fate when it reaches his desk. >> on the wall? will i veto it? 100%. i don't think it survives a veto. we have too many smart people that want border security. i will veto it, yes. mark: the democratic control of the house is sure to pass the measure.

the republican-controlled senate may adopt it as well, despite the president opposition. venezuelan soldiers have killed two members of an indigenous community who are trying to stop a convoy blocking humanitarian aid from crossing the border with brazil. nicolas maduro's soldiers opened fired after members of the nearby community stopped anti-right troops and their vehicles this morning as they are tried to assert control over a remote area southeast of caracas. a united nations watchdog says iran remains in compliance with the terms of its 2015 nuclear deal with world powers. a report from the international atomic energy committee says its inspectors had access to all of the sites and locations they need to visit, and a senior display at -- senior display at -- senior diplomat sees no changes in actions since the sanctions. it is the 14th consecutive time

iran met its obligations under the deal. florida authorities say new england patriots's owner faces misdemeanor charges of soliciting a prostitute after he was twice videotaped in a sex act at a florida massage parlor. he associated press reports has denied any wrongdoing. florida police said a warrant will [no audio] caroline: we just had a technical glitch there, but we thank you, mark crumpton. the current round of trade talks between the u.s. and china was supposed to wrap up today, but now, they are extending their stay by deed of days. negotiators have reached an agreement on a provision and trump remained optimistic on a larger deal. i can speak for the united states. the question is an interesting

one, is it more likely a deal happens or does not happen? speaking for the united states, i think it was probably -- is probably more likely a deal will happen, but it doesn't mean it will happen. next guest joins us by phone. -- guests join us by phone. is a cooling down of optimism in terms of the verbatim coming from trump. who has the more power here at the moment? >> i think this was a significant day for the stock market. i think it is a good day for investors. this is so important for the world economy, to get this deal done. i've been around trump a lot and this deal is not done, but it's clear to me, from what he said today, he wants the deal

done. i was worried there was part of him that wanted to get in a trade war, but he wants to get it done and declare a victory. the devil will be in the details, so we don't know exactly what china has agreed to, but this is a positive day. i feel better about things today, and investors do as well, then we did a few weeks ago. romaine: when we talk about this idea of declaring victory, how will we measure this? where they'll be -- will there be a tangible economic impact we can point to to say this is a good thing? >> i think president trump is looking for reduction in the .rade deficit i don't think we will see that. the best case for victory is that we end up not having to go to the next round of escalation

and see tariffs go from 10% up to [no audio] caroline: we seem to have some sort of technical difficulties to do with audio. steve, thank you. ♪

lisa: the more of the heritage -- to our guests, thank you for your patience. we're talking about president trump's plan for a trade deal with china. steve, since you worked with president trump closely, how serious do you think president trump is trying to tackle the structural issues given the fact he would like a deal in the near term, i'm talking about intellectual property and other issues deeper. [no audio] >> i will take the question.

deficit like trade forced technology transfers or not, what we've seen public key -- publicly from the chinese is offers to take measures to shrink the trade deficit, whether it is buying energy resources or agricultural products. we are not hearing about the , thetural reform technology transfers, state sponsorship of industry, those things. i think president trump will hold those out until he gets capitulation on those measures. is not clear if the chinese are ,illing to bend in that degree some hard-line communist newspapers were rerunning speeches from president xi where he said we won't back down on these issues. about six months ago, serving as a shot across the bow that both sides are worried about their leadership capitulating. therefore, i don't share the

same optimism that we are close to the end zone. romaine: when you are planning out your models here, how much are you factoring in the confidence factor with regards to how the trade, in some degrees, eroded confidence? >> absolutely. we can see clearly that the equity markets are very sensitive to the twists and turns of trade negotiations. seeing what happens in the equity markets in q4 and the subsequent fallout on anything ranging from retail sales to industrial production, to business inventories, very real consequences. if we talk about a scenario where the 10% tariffs go up to 25%, that's will have a significant -- that's will have a significant effect on the u.s. economy -- that will have a significant effect on the u.s. economy. lisa: twitter says evan williams will step down from the board. williams was one of the cofounders of twitter.

inwas a pivotal founder this. shares are down in after-hours trading. meanwhile, earning -- ironing out a trade china -- tree do what china is not the only foreign efforts. president trump is meeting with tim john kuhn -- kim jong-un. what has changed since the last visit? >> very little was accomplished last time and we ended up with a statement that the 211 leaders agreed to -- two leaders agreed to. each side to find it in their own way, including what does denuclearization mean. for north korea, it means withdrawnclear forces

. into hanoi, the u.s. will look for specific outcomes it can point to. it doesn't want to be criticizing for reaching a vague agreement. it wants to say x y and see are occurring.- z are we are looking for situations that allow inspectors to verify some dismantlement of nuclear facilities, looking for agreement is to possibly, formally extend what has been a lack of missile tests and nuclear tests by north korea. i think the north koreans will come in with their own expectations of things, whether it is an easing of sanctions or some reduction in the u.s. troop presence. it is hard to know how it will all shake out, but the expectations going into a second meeting are different from the first, which was just to get the leaders together in a room.

this time, people will be looking for 80 tell the agreement. romaine: so you get the leaders in the room, how much do you kno -- do we know about the delegations? wassouth korean president instrumental in orchestrating the meeting and facilitating it on the ground. do we know if the south koreans will have a presence, or any other countries other than u.s. and north korea? >> i think the south koreans will be circling this. the chinese will be circling this, and see -- and certainly, the vietnamese will be watching this. hanoi will be full of all people from around the world trying to get a beat on what is taking place. are going toeans put a lot of eggs in the basket of the one-on-one meeting between kim jong-un and president trump. trump as shown in some of his key meetings over the last year, including the phone call with the turkish president in and in his press

conference with vladimir putin in helsinki last year when he seemed to accept the russian leader's explanation for meddling in the 2016 election over his own intelligence agencies, i think the north koreans go in knowing their best deal comes when kim meets trump one-on-one, and they will try to secure something that may be the negotiators have not agreed to in advance. caroline: remind us of the repercussions of this. is it right in thinking japan is most closely watching these discussions? bill: definitely. from our best indications, there a lot of talks between japan and the u.s. so far, which is unusual and different compared to last year. about northcerned korea's military capabilities. they want to get people kidnapped by north korea back. then, there is always the tensions between japan and south korea. south korea has been a proponent of these talks, and pushing the

united states to undertake them. japan has been a lot more cautious and worried about where this all may lead for their alliance with the u.s. and their role in asia. romaine: thank you, bill. up, lifestyles of the rich, famous, and furry. we talk about the world's richest pets again and how these designer dogs and lavish cats made their millions. that is next. this is bloomberg. ♪ .

caroline: breaking news that the cofounder and chair ceo of twitter has quit the board. twitter post, i'm lucky to have served on the twitter board since there was a board. it has been an educational, at -- anchallenging,

educational, and at times, challenging. someone lets me come in, i will come by for lunch. clearly good will he owns 1.5% of twitter shares. romaine: thank you, caroline. we turned back to the lifestyles of the rich, famous, and furry. behind arfeld leaving sizable inheritance for his cats. how exactly does the financing work? here to answer the question is christopher burns, and the state attorney,-- an estate and joins us. we've had a great time talking about this german shepherd, but once you put aside all the jokes, there is a serious concern amongst pet owners, specifically--

wealthy pet owners, to make sure they are taking care of once they die off. -- the owners die off. >> we see pets often treated by their owners as children, and they want to provide for them, not just during their lifetime, but after they passed, to either provide for a pet to go to a loved one or friend, or create a trust and find an organization to care for the pet for the rest of its life. it's important to the owners spending billions of dollars on their animal to make sure it is well taken care of. lisa: this raises another question. far to extrapolate too a is ao far, there making sureetween the pet is ok and leaving them with millions. a another billionaire left

her pet andum to new york courts eventually .educe the amounts set aside caroline: we are looking a graphics we made up by our that one ofowing the animal managed to increase their share by investing. how do you lay this out in the will and make sure that once you more moneyoney makes on the back of it and goes to where you want it to go and not the frivolous nature of those who are left in charge of your dog. >> i didn't represent guenther, but what i've seen work very well for people over the years is you name a trustee to be the

overseer of the funds, the money, and you name a custodian to make requests's on behalf of the animal for the things the animal might need areas that's so it can live in the lifestyle is accustomed to, whether it is have ar or trouble, they certain standard of living they are used to. the creator of the instrument wants to provide it for them and have them have that experience for the rest of their life. we tend to spend a lot of time talking with clients on how much is too much and how much is enough. i don't know if it is the but iity of minnesotans, don't think that will be a problem. romaine: does the law allow for enough protection. when you look at gunther with $375 million, how do you ensure that money does not get pilfered

off for something other than what the owner had intended it for? christopher: that's where it's important to have a check and balance. in my example with the trust odeon -- the custody in an trustee, i addressed -- advise clients never to name those as the same individual. i encouraged to have separations of powers so you have someone taking care of the animal and the trustee over watching to make sure the animal is taken well -- well taken care of. that works rather well. often times, as strange as it sounds, we will provide for animals to have visitation. see the pet is going to one person as custodian, and they have children they can check in on the animal and make sure it is well taking care of, so it can be as complicated as child support agreements as you might imagine. lisa: we have a question from a

viewer, a legitimate question. what are your thoughts about ororing the bestowing of 100 $300 billion to a pet considering it is an animal and not making their own decisions? sure.opher: what strikes our sensibilities can vary from situation to situation. states in the united states, and i understand some european countries as well, i've created an ability to have enforceable rights. new york reduced the gift for trouble, finding it was an excess of what the dog would need. there is a role to adjust things if they are excessive, but clients of mine that's love their pets, they don't want them

to be cremated or otherwise euthanized upon the death and very with them, but want them to live the rest of their natural lives. that was something mr. lagerfeld .aid during his lifetime only if his pet died before him remainswants their mixed with his. lisa: hollywood rolls out the red carpet for a listers this weekend. there is one billionaire creating buzz in tinseltown. he's the founder of participants media in the studio behind hits like roma and green book. he says the socially conscious movies will be bringing home gold. let's bring in our bloomberg media reporter in los angeles. or this worked in the past the socially conscious movies were the ones that did best? >> definitely.

movie about ae journalist again sexual abuse of the catholic church. they had quite a bit of cards at the oscars as well. they have the documentary about the supreme court justice, and green book and roma, which is probably the favorite, but it will be hard to predict what comes out as best picture. romaine: is there a risk you boxer celfin if you produce something that falls into one end of the political spectrum. you are potentially alienating half the country. >> sure. his films have done well, at least on a critical level, and i think they have matched the budgets with it, so it's not like they are going out on the disney, marble, blockbuster, $200 million movie where you cannot risk alienation of anyone

and you have to play to everybody's taste? here, we are talking about a budget of maybe -- taste. here, we're talking about a budget of maybe $23 million for green book. there, you have a chance to make your money back. we are talking about billionaires, and the plan is to reap a huge amount of money. they want to stay in ability, but it is about making movies that get a message across. caroline: do we know much about how the director made his fortune and what drove him to do this? retiring been a more person. he has had interviews on the red carpet, and he has done some big high-profile interviews with newspapers, but not that much. he's not in front of the camera type or sing, more behind the scenes. often, when it needs to be done,

he leaves it to the producers to talk about the film. he made his money from ebay, when he was one of the first employees. he's not alone. we've seen other philanthropist billionaires getting into the movie industry. founder was another investor in the spotlight movie and has invested elsewhere. there are others, even fred smith of fedex has invested in movies. he's not really want. caroline: a great wrap up there. thank you. all eyes will be on if roma stills the spotlight in the oscars. now, that is all from "what'd you miss?" we will all be watching this romaine: i'll be in bed. don't go way, "bloomberg technology" is up next in the u.s.. lisa: and if you do watch the oscars, enjoyed and have a great

weekend. this is bloomberg. ♪ -- enjoy it and have a great weekend. this is bloomberg. ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." hour, up in the next worker protests come to a head at google. the company is doing away with one policy that thousands of employees criticized. plus, we sit down with an investor who made a big move in the vc world. we talk about his strategy in 2019. netflix could beed