scarlett: welcome to bloomberg markets. president trump just concluding remarks in davos and we will unpacked what we have to say and track the price action across the markets. let us talk about where the benchmark index stands after stalling initially at the open. yesterday, the s&p 500 turned positive over the past hour. however, semiconductor stocks are under pressure with the stocks down more than 1%. south korea posting strong results but did warn of a potential slowdown in ai spending while europe fell under concern over u.s. export controls. we have texas instruments

reporting later tonight to set the tone for the chip sector as well. when you look at the bond market, bonds are down at the long end of the curve pushing up yields. the 10-year up almost four basis points the dollar-yen and this is what i am watching carefully because the boj does need to make the consensus and that is widely accepted and agreed upon and priced in that they will hike by 25 basis points. now let us look at oil prices because in his remarks to the audience, president trump said he will ask saudi arabia and other opec nations to lower oil prices. he sees that action reducing inflation and would pressure russia to end the war in ukraine. the wti losing about .9% at 74 or $76 a barrel. let us look at mid-day movers in the u.s.. first up is american airlines

tumbling after forecasting a loss to start the year. a huge contrast with delta and united. america expects an adjusted loss of $.40 off a share -- even though they broke -- they put a strong quarter on last semester. general electric moving in the opposite direction climbing to a record high as the profit beat wall street estimates. they work through some supply-chain limitations and to buy back $7 billion of stock. let us check out alcoa losing more than 4.5%, down after a 25% tariff on canadian aluminum imports would reduce demand and to quantify that further by saying he could leave a negative impact of $2 billion on consumers. tariffs are a big part of president trump's trial -- policies and he gave his long-awaited remarks. one issue that he zeroed in on was oil prices and interest

rates. take a listen. >> with oil prices going down i will demand that interest rates drop immediately and they should be dropping all over the world. interest rates should follow us, all over the progress that you are seeing that is happening because of our historic victory in a recent presidential election. scarlet: for more on what president trump did say and the reaction on the ground, let us bring in lisa abramowicz who joins us live from davos. thank you for staying up late and this was a speech that was long-awaited by you and everyone on the ground. the picture that donald trump painted was one of economic calamity where the u.s. economy is doing terribly and it is his job to bring it back to the light. lisa: well, it seemed like he started with the campaign speech talking about how bad it was for the past four years and how incredible it will be. this was not what the people in the audience came to listen to.

they sat through it but there were a lot of very real questions about what the tariffs would look like and what trade policy would look like and what does he intend to do to reduce the deficit. how much does the idea of increasing oil and gas production do especially with exports if oil prices not come down as quickly. i thought it was interesting that the tou thao energy ceo asked a question saying you do export and you open up the exports of liquefied national gas -- natural gas to europe and prices go up in the u.s. as a result, what would you do? what president trump said was actually what i would do is increase permitting and reduce the time that it takes and that would not be a problem. there are a lot of questions. in terms of the campaign speech they were listening to what he set around permitting, oil, interest rates and what he had

to say in terms of offering and all of ranch to the rest of the world -- olive branch to the rest the world. he took a conciliatory tone towards xi jinping and concrete comments about russia and looking to end the war. in this audience people care about that. but on a broader level they are looking for details that we just cannot know yet because there is a negotiating aspect to a lot of what he is putting out. scarlet: well said. everyone is talking about what tariffs and that is a conversation you have been having over and over again. those are details that trump did not get into. what did you learn from the banking executives on the panel who asked pointed questions to the president? lisa: i think that they are feeling a little bit in the dark. brian moynihan says that he has been fielding questions about how this would rollout and

looking for clarity. i think there is this sense of what do we not know, setting up war rooms which we have heard about to analyze the headlines as they come out. and then this feeling of jubilance, just because if you reduce regulations and taxes you will get more activity and if you have a growth agenda that will benefit the banks. i think it is interesting that he went after brian moynihan for not opening his banks to conservatives. that is not true, however, it speaks to this rolling back, and the vibe shift against esg and dei. he called it nonsense and he was talking about it and talked about a merit-based economy. it speaks to why we did not hear any of that at davos. no one was talking about that and davos has been place for the davos man to talk about how this needs to be a more equitable place. it was this interesting shift

capped off by president trump's speech underscoring how he feels about that and the animosity he has towards it. scarlet: out of the zeitgeist with president trump in office. thank you very much. lisa abramowicz in davos doing fantastic work all week long. we look forward to her return to new york. for more on trump's remarks and how the international community is reacting let us bring in tina. she is the founder of fordham global foresight. i want to start with the remarks because in hisq&a he treated -- he said that the europe was treating the u.s. unfairly and e.u. regulators going after u.s. companies. from where you sit, is his thinking or approach to foreign relations and geopolitics consistent with what he took in his first term? is there anything new with how

he is presenting his vision? tina: listening to his speech was a remarkable experience. i think that he is coming into his second term really finding his mojo in a way he did not see -- we did not see in the first term where he faced more protests. trump is in his element, i think. look at the language sheila used about making demands of foreign governments and things that are really not in the gift of a u.s. president like lowering interest rates around the world as if he has the wizard of oz and all-powerful and all-knowing. so, it is a striking tone to take. and i suspect it will have caused a great deal of bewilderment amongst the

attendees. i have been in the room myself and he has given someone -- everyone something to talk about. scarlet: that was the theme. i am curious to get your sense of the reception to the second trump term. foreign leaders are all falling in line waiting to engage with him. not unlike the ceos that look to manage their relationship with washington in a different way than eight years ago. does this friendlier dynamic create better outcomes? tina: i would not call it a friendlier dynamic. there is more of a sense that you know, we have seen this movie before and we know how trump works, whether it is a ceo or head of state. flattery, a shortened amount -- a certain amount of courtship and kissing the ring and the key was to see him at mar-a-lago. for now, i think that european

business and political leaders are trying to keep their wits about them, hoping for the best, that they can win favor with president trump and his entourage. and that will somehow spare them from his wrath. but, there is incredible puzzlement at his particular efforts, it seems to levy tariffs and punish historical allies. you see hopeful language from the european commission president and other leaders emphasizing the deep links and ties and -- and the relationship means so much. for now we will see a lot of sucking up to president trump. scarlet: thank you. donald trump has made it clear that he wants to buy greenland and the panama canal for an -- for economic security reasons.

we know that greenland is rich in natural resources. but, also it is valuable because of its strategic location. how do you see that shaping up and how far do you see the u.s. going in terms of pushing denmark for a sale of greenland? and then how does that say -- shape our relationship with different countries? tina: putting my international relations hat on, 85% of all wars in human history have been over territory. so little bits of rocks in southeast asia or greenland, which is bigger than that, strategic locations matter, and they matter even more in the current, highly contested global environment. the arctic is the subject of a great race between rate powers. so greenland's position is important.

u.s. interest goes back a long way. it is not formally part of denmark as in it is in a taunus promise that has wanted -- autonomous province that has wanted an independence referendum. president trump says that he does not think he will need to use armed force. we are seeing a u.s. president use sales tactics and cohesion -- coercion in a way that has not been tried before. in that sense we have no data points where case studies that we could invoke. i think we are going to see a trajectory, first is the sucking up and then, the bargaining. and then there might be some difficulties because i do not want to forget this point, and that is european governments do not want to fight with the united states. and other allies.

but they are not going to rollover and do whatever he says. so, there are plans and preparations for a response. scarlet: very quickly, last question. who is more pivotal right now if you are a foreign leader, negotiating with elon musk or secretary of state rubio? tina: i think that foreign leaders do not know how to engage with elon musk with the exception of xi jinping, who has a relationship. european leaders are focused on the choreography of diplomacy, rules, regulations and bureaucracy and they will adhere to those channels. as much as possible. it is not going to be nimble, but there will be a charm offensive. sometimes that works with donald trump. scarlet: it certainly has.

always appreciate it. tina fordham, a world-renowned global geopolitical strategist. coming up we will focus on the u.s. banking industry and how regulation might look. we will hear from the morgan stanley ceo who spoke in davos today. ♪ i can't believe you corporate types are still at it.

just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah. ♪♪ ♪ three little birds ♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

scarlet: this is bloomberg markets. wall street has embraced president trump with open arms seeing his progrowth agenda good for the finance industry. the ceo of morgan stanley weighed in on the potential growth factors when he spoke in davos. ted: the question is what kind of growth can we generate?

the conversation that one would have is which comes first, the potential inflationary effect or the positive deregulatory effect? one of the things that we know is that there is an ongoing dialectic more quickly than the other, and pivoting and transitioning in the dollar support. scarlet: i do want to focus on the the regulation part of that commentary so let us bring in nathan, a senior analyst for bloomberg intelligence. when ted and other wall street ceo talk about deregulation, what are they referring to? nathan: it is the also three and game, a planned 9% in requirements and we think that is staved off. we think that banks and the deregulatory aspect is a great pause for 2025. the reason being is that the

federal reserve remains under jerome powell and it needs chairman powell to agree with any type of regulatory reform. going forward you will see additional reviews and may be tinkering to the stress capital buffer but i know that capital levels -- i do not think capital levels will change very much because deregulation is not a magical want. you need the off troll -- the calm -- the office of the comptroller and the fed to go along. if you are banking on the regulatory aspects hitting the bottom line you are looking at 2027 at the earliest because 2025 and 2026 they will be looking -- working on it. scarlet: if basal 3 will be delayed or eliminated, how will that be a boost to the industry because it was never implemented? nathan: if it is implemented it will be in a way that is capital neutral, and the banks will tell the regulators keep us at a

level playing field with european counterparts. going forward, if it is delayed, then you will get questions of what the capital regime looks like because remember, basal 4 has already been implemented in europe. so if they begin questioning their own capital levels, that will take place in the united states. and then you will have a holistic review that questions if more capital should be returned to shareholders. you will see changes and stress testing in 2027 that will make it easier for banks to pass and return the capital to their shareholders and so forth. i do not think it will happen immediately, but the banking industry can bank upon the idea that the regulation is calm. scarlet: what you are saying is a couple of years from now. the most immediate move that the trump administration can make is the lighter touch on m&a? nathan: that is correct and that

is something that the banking industry has been complaining about. we think the federal reserve will take a new lens and you will get away with this idea of the consumer impact and they will look at it in terms of dollars and size and so forth. if you look at capital one and discover the combined entity is well below what it is. so we do not think there will be any hiccups for that merger. scarlet: we appreciate it. coming up, private equity wants access to retirement accounts and is now lobbying the white house to get it. the next guest says not so fast. what that means for retirement. this is bloomberg. ♪

♪♪ your clients' road to retirement starts with confidence... knowing you're working with an industry leader. at principal asset management, we harness data-driven insights to help you navigate today's markets for tomorrow's outcomes. ♪♪ and with decades of expertise, we can guide you on a path to stronger retirement portfolios. principal asset management. actively invested.

scarlet: this is bloomberg markets and i am scarlet fu.

we are talking about trends in retirement planning and one of them is private equity in 401(k) accounts. they are hoping that it will make it easier for them to put those accounts into practice. my next guest says that they should not be able to tap into those assets. let us bring in allison who is live in davos. walk us through your thinking because the arguments for including pe into pension funds is that big pension funds and institutional investors already invest so why not make this available to individual investors? allison: it is not clear that it has gone well. a lot of them are of not finding that they are getting their money back. even so, this is an investment that is very opaque and direct to market pricing. you do not know what you are getting really, until the fund matures. it is not clear that individuals would benefit from something.

the risk is not only that it is illiquid and the argument is that it gives you a higher return because you get a gain for giving up liquidity. it is not just a liquid at a lack of transparency and regulation. so the least sophisticated investors really do not belong in something so lightly regulated and hard to understand. scarlet: what is easier to understand is charts that show you your returns. one thing you pointed out is that for all the talk that private assets provides diversity, uncorrelated returns with private markets. the charts for private assets in the s&p 500 do not look that far apart. allison: evidence shows that if you just invest in value funds you can really sort of replicate these m&a funds, which obviously have higher fees. why pay the fees? people have to understand that while some people have done well and usually it was a different

era and earlier areas that not all vintages are the same. retirement assets will be subject to more scrutiny. it is not clear that retirees would even get access to the better funds. scarlet: before we let you go you are in davos and you are speaking with corporate leaders and government leaders, what is your impression of the proceedings? it feels like the entire week has been dominated by the 1% not in town, donald trump. allison: he is the topic of every conversation. the europeans are very depressed about their growth prospects and everyone seems doable into came from america. and everyone wants to talk about trump. scarlet: there is a huge contrast. did anyone get what they were looking for from the president's remarks? allison: yes. i think people who came to feel better did and people who came to feel offended dead.

trump give something for everyone. scarlet: he really does. we look forward to your opinion column when you publish it. allison joining us from davos and giving us her take on including private assets in 401(k) accounts. that is something that the alternative asset management industry is lobbying the white house for. we will take a closer look at how financial markets are reacting to his early executive actions and his remarks. we will talk over that with carol from bmo private wealth. from new york, this is bloomberg. ♪

prudential has been helping protect people for generations. ♪♪ we helped the lost generation find their way. the greatest be great. we watched boomers grow. [laughing] we are x, y and z. and this january, a new generation begins. generation beta so, now what? we help protect their life's work, like no generation before. so they can live a better life longer. ♪♪

scarlet: welcome to "bloomberg markets." i'm scarlet fu. let's show you what is going on across the financial markets. the s&p 500 stalled at the open but is turned modestly higher, up by .1%, building on yesterday's move to a new intraday high, but not at a closing high. we will keep an eye on these developments. semiconductor stocks not participating in this advanced for now. you will want to keep an eye on this group with texas instruments reporting tonight. a potential slowdown in ai spending. asml down in europe. that is a big drag on that space. 10-year yelled inching up three basis points.

dollar-yen under the spotlight because the doj will be meeting tonight and it is expected to raise rates by a quarter of a point. let's continue with equities and look at the individual movers and bring in isabel we for a couple of those. his belt: like -- isabelle: electronic arts is down by the most since 2008, missing forecast due to the week performance of 2 holiday video games. it pinned most of the blame on poor sales of ea sports 2025 and a dragon age. the company expected a mid-single digit increase in booking. we are seeing heavy pressure. nvidia down almost 1.5%. broadcom also down. all three are slumping.

results of a south korean chipmaker failed to boost ai. asml also doubled the cost concerns over for the u.s. export controls. all in all, it sparked worries that spending and equipment will be tempered. we'll looking at aerospace. shares are climbing 7%. the company reported adjusted eps that beat estimates. they are working through supply chain limitations and capitalizing. the results show how the company is working to navigate issues as one of its largest customers continues to grapple with challenges. ge announced that it plans to buyback stocks of $7 million worth. back to you, scarlet. scarlet: thank you, isabelle, for the roundup of equity movers. from the micro to the macro, because from talking about the state of financial markets, earlier today in davos katie

koch sounded a positive note as we start 2025. >> the dominant mood is extreme optimism. a lot of that optimism is priced into the markets. the idea of u.s. exceptionalism, just to put that into context with people, the u.s. has demonstrated exceptionalism. we are 4% of the world's population with many percent of gdp, 60% of global equity market capitalization. that is factual. the question is is it sustainable and how much further can it go. scarlet: for more on what katie koch was saying, whether this rally is sustainable, this exceptionalism is sustainable, let's bring in carol schleif of bmo private wealth. imagine how the s&p 500 made a new intraday high yesterday. the s&p is higher for an eight day in nine. they continued to move north and there is not much stopping the u.s. equity market right now. is the fact that we have not gotten that much details about

potential tariffs continuing to support this market? carol: it definitely did support the market. you had markets entering the year wobbling a little bit after the all-time highs late last year. a piece of that was people were trying to figure out what was going to be in the new trump administration. we've been prepping for months, especially on day one, understanding what was going to be in the orders. markets seem to breathe a sigh of relief on monday that there wasn't sweeping tariffs applied right away. there was a single executive order that instructed all of the federal agencies to go through what is going on and bring back a report. it basically reinforces what has been our house view, that terrace more likely are going to be a negotiating stance, not necessarily applied across the board.

however, president trump has made it very clear in subsequent conversations and responses to reporter questions that tariffs are very much on his mind. we do expect to see issues there. underlying all of that, we have the tangential factors where there was lifting of regulations, freezing of regulations, promises of faster permitting. from a business operation standpoint, companies have reason to be pretty optimistic. scarlet: but as you mentioned, investors on edge as we wait for details, and it is not clear when those will come, especially if it is the beginning of a negotiation. i want to get to this idea that we are in earnings season and companies are being asked a lot of questions about how they navigate the current environment. by now they are trying to figure that out. one thing they are contending with is a stronger dollar. we have seen that for the bottom-lin that hurt the bottom-line -- her the

bottom-line results of companies like netflix is this an underpriced risk? carol: i'm not sure it is underpriced or underappreciated. there potential offsets companies have as they deploy ai. a lot of companies talk about white-collar flattening and flattening of the organizations and picking up cost savings there. the dollar is definitely an impact for a lot of the companies to figure out how to absorb, because passing along stronger dollars to the end consumer isn't necessarily a possibility anymore either. that will be an issue when it comes to if and when tariffs get applied, can companies pass them along. we suspect it will be different and trump 2.0 paraphrasing that it was in --tariff regime that it was in 1.0o scarlet: russell is back in line

with the s&p 500. what kind of earnings are we likely to see from these smaller companies that are going to be more protected in an environment where there is protectionism, tariffs, than some of the big- cap stocks? carol: it's been interesting, we along with everyone else has been waiting for markets to broaden sustainably for a long time, and you will see it in fits and starts. we do suspect that there will be a lot more potential for those small- and mic-cap-- midcap stops to participating especially in a stronger dollar, relative to their larger-cap brethren they import somewhat less it translates to the bottom line as important. there are a number of factors that should benefit them, not the least of which is lighter regulatory oversight and the ability to get stuff done and moderating inflation and interest rates. scarlet: right right right.

i would be remiss not to mention the federal reserve. they have a meeting next week, but it feels like they are kind of a sideshow and await, because they need to wait and see what happens with the new administration and what kind of policies they put forth. does the fed matter as much as it did for the last meeting? carol: we think the fed definitely matters, especially as you look through the year. but the interesting thing is even some of the commentary, markets will look hard at the commentary that comes out of the fed. it won't be the rate decision, because for most market participants it's a question of is it one cut or two, and where in the back half of the year is the potential cut. people expect the fed to stay somewhat higher for a whole lot longer. that said, they will look at the commentary come and perhaps there is enough meat around the

bones of the initial executive orders that came out monday and tuesday of this week so that the fed can start factoring that in as they are thinking about how they start creating those models that anticipate what might come out of this. you got bet there would be a lot of people paying attention to the press conference as well as did seeing the governors back out on the talking circuit the next couple weeks. scarlet: more weeks of fed speak to come. carol, appreciate you joining us. carol schleif's chief market strategist at bmo market well. american airlines sliding in today's session, warning of a surprise loss to start the year. really standing out when you look at its competition like united and delta. this is bloomberg. ♪

i earned my degree online at southern new hampshire university. it's possible to raise a family, to pursue other things and still further your education. and you can do it too.

from all over the country. i live in massachusetts. i live in texas. i live in california. i live in pennsylvania. i'm from florida, i'm from virginia, in north carolina, in saint louis. i'm from tennessee, and i'm from georgia. regardless of where you live across the country, earn your degree at snhu. visit snhu.edu. (♪♪)

(♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

scarlet: this is "bloomberg markets." i'm scarlet fu. time for our scott of the hour, and we are looking in american airlines declining after an unexpected loss in the fourth quarter despite quarterly profits beating analyst estimates. if you look at the share price move, it is the biggest intraday decline for the company since may, after its efforts to win back business travelers shows signs of lagging. let's bring in an analyst of u.s. equity research at jefferies. i want to focus on the first-quarter loss forecast, because it is such a contrast to what we heard from delta and united, which say there are all of these great tailwinds right now for the industry. >> i think there still are, and results prove that. we saw pricing improve positively in q4 and that is what drove the beach.

2025 guidance came in a little later than expected, $.15 on the to 35 eps midpoint. we think it is slightly higher costs related to fuel. we think there is opportunity and upset there. american's thesis is predicated on prices improving u.s. domestic market, 75% of american airlines exposure, and second, the efforts to regain corporate share. scarlet: let's talk about that effort. it implement it a sales strategy that pushed business customers away for to other carriers presumably because kind of like how nike wanted to get rid of the middlemen and bring people to its own website, i guess that is what american was trying to do as well. what was the thinking behind that, and did it will back that strategy completely? sheila: midyear last year they rolled back the strategy. it was essentially removing

third-party members from rolling out. you would have to go to page 14 before you could get an american flight to lax. now they are bringing that back. they had a slight in the presentation which showed the point of share regained. 5% of total sales. rbc very high margins. total margins -- obviously very high margins. total margins are 5%. scarlet: this comes when corporate travel is expected to pick up as well. not great timing. sheila: not in january when it is called, but in general in orbit we are seeing improvements --incorporate we are seeing improvements. they have seen benefits of united and delta's efforts so they are trying to put in long-haul capacity. scarlet: when it comes to legacy carriers, what is american's distinct advantage? i think about delta and they pushed this premium service with lounges and everything for

customers willing to pay for those frills, and united has the international flight network. what is american offered? sheila: american has a great point at work but the offer might not be at a premium. the food might not be up to par, the network might not be as extensive as united. they afford to do, but they are focusing on the right -- they have work to do, but they are focusing on the right areas. a year ago the roof focusing on short-haul to el paso, low cost carriers like southwest and we know how that story has gone. they are focusing on the right areas. scarlet: i like how you threw that in, that we know how the story has gone when it comes to the discount carriers. we know that under the biden administration the m&a deals that were supposed to combine jetblue and spirit went away. what happens now that there is a new sheriff in town and the low-cost, low-fare carriers are

struggling? sheila: we don't want to deregulate airlines, actually, because mergers would increase competition. we expect in 2024 domestic pricing was down 5%. that is because capacity was up 5% in 2024 in u.s. to mystic markets. as capacity has come in in q1 and q4 to 1% to 2% increases, we have seen price increases. depending on the carrier you are looking at. you don't want mergers, you want excess capacity out of the market to create profitability for airlines. scarlet: of the airlines that you cover, which are you most bullish on? sheila: we are most bullish on united airlines. they had great earnings yesterday. they put out a bullish guidance. the stock went down -- fourth best performer in the s&p. it was a little bit underwhelming. i want to give a read through my airspace coverage.

what american and united proved to me this morning from with of them cut capex guidance less than expected. general electric is the other stock moving up today. we continue on the thesis that capacity might be limited given that boeing and airbus will not adjust to the demand market needs. scarlet: this has been a multiyear story for going and airbus. -- for boeing and airbus. sheila, always a pleasure. sheila kahyaoglu is an analyst over at jefferies, and that was our second hour, american airlines. we are going to head to los angeles to get to the latest, where there are two new fires going. we want to give you an update and take a look at how the entertainment industry plans to recover. this is bloomberg. ♪

scarlet: this is "bloomberg markets." i'm scarlet fu. you want to give you an update on a story we have been following the last two weeks. there are two new wildfires in the l.a. area. the first is the hughes fire, which began wednesday. the second one is a new one. it started early thursday west of the city's downtown near the getty center art museum and is burned 40 acres. let's bring in john gittelsohn, bloomberg news bureau chief in los angeles. i know that you and your family are safe. he did have to evacuate a few weeks -- you did have to evacuate a few weeks ago, but you are back home now could can you give us an update on the new fire that hits alarmingly close to central l.a.? john: that is 40 acres approximately. i saw a bulletin from the l.a. fire department that said it has

been knocked down from spread has been halted. the evacuation orders have been lifted for that area. that one seems to be under control. the big hughes fire north of the city near santa clarita, there is a six flags resort near there, which may help with familiarity. that is only 14% contained. it is a very rugged, mountainous, sparsely populated area. not threatening as many structures as some of the others , although there are evacuation orders and warnings for supposedly 50,000 people, which seems like a lot for that area. scarlet: yeah. i know everyone is paying attention to every weather forecast. there is rain in the forecast from which should help at least

with containment can which does not mean that the fire is being extinguished, just that it is not growing. john: yeah, we have not had reign of an immeasurable level in the l.a. area april. usually december, january until march is the rainy season, but this year the rainy season hasn't come. every little bit of rain should help. all that brush that grew from last year's rains his perfect can link to start a fire everywhere-- is perfect kindling to start a fire everywhere there is brush. scarlet: bloomberg news los angeles bureau chief john gittelsohn, stay safe. with los angeles reeling from the fires, the entertainment industry is caught in the middle of the crisis. the oscar nominations were delayed, and we did find out today the nominations, which came out this morning. let's bring in felix colette with a little bit more. l.a. is a one-industry town, for

all the talk that it is diversified into other industries and ask startups as well. entertainment is the main business. the tragedy of the wildfires has pushed aside business as usual. it is not really business as usual. late january is normally award season, but it hasn't been this year. felix: there has been talk of or should they hold the oscars at all this year. i think in the end the academy decided the industry needs something to celebrate and we need to come together. the nominations were delayed, but they were announced this morning. scarlet: they were announced without the usual fanfare, and there are questions about whether the oscars should be held. what can you tell us about the nominations? everyone is keeping an eye on streamers. felix: "emilia perez" was the big winner, 13 nominations, more than any other film. another great moment for netflix, which has been having a great week. they cost 300 million subscribers, they had these great earnings, stock is way out. they distributed "emilia perez"

in north america, got more nominations than any of the big studios. another great moment for netflix. it is fun because this year the best picture in particular is so wide open. last year we all knew "oppenheimer" -- this year there is five or six different films within the 10 nominations that could easily win. scarlet: and usually at award shows like the golden globes, they give you an idea of what is to come for the oscars, but everything has been so disrupted we don't have a clean read anymore. felix: there is no clean favorite going into the oscars. it's also a challenge for the academy. the leading contenders are not huge blockbusters, they are not films that have generated big audiences so far. on the one hand it is great, it will get attention for some of these films that you might not have seen yet. on the other hand, it is going to be harder to draw an audience

to the award ceremony, as opposed to last year when you had to the barbenheimer phenomenon. scarlet: what is the movie that is done the best commercially? felix: "wicked" and "dune part 2 " were finalists for best picture and those were successful films in the theater. those could win it, but most think "anora," "conclave," less well-known films at this point. we'll see. scarlet: did you see any of those movies? felix: none of them. scarlet: i saw the "c onclae," which was good, but i saw it at home. i'm scarlet fu, and that does it for "bloomberg markets." "balance of power" is up next. ♪

[laughter] you go to sandals to get really, really close... to the caribbean. we should do this every morning. ♪♪

>> from the world of politics to the world of business, this is "balance of power." live from washington, d.c. joe: the question becomes how high.

welcome to the fastest show in politics, with talks to raise the salt gap gain momentum on both ends of pennsylvania avenue. i'm joe mathieu alongside kailey leinz in washington. welcome to the thursday edition of "balance of power." this debate has evolved from whether it will happen at all to yes, how high. kailey: we will have more in a few minutes republican congressman michael lawler in new york, who is at the white house with president donald trump talking about salt. donald trump spent part of his day addressing virtually the world economic forum at davos, talking about lower oil prices, lower interest rates, and yes, lower taxes. joe: no doubt. he will demand lower oil prices, asking saudi arabia to pump more. i'm not sure demanding though interest rates from jay powell will resonate. kailey: the think chairman will beg to differ on that one. -- fed chairman will beg to differ on that one. he has medically the tariffs could be hybrid he talked about trade relation