what were the key takeaways from robert lighthizer's speech?s the available progress in the negotiations, but they haven't made friends. the u.s. is still the outlier in the negotiations. this heiser talked about is the first because usually got down to discussing some of the core issues, and he was pleased with that, but he rejected the canadian suggestions and counterproposals to some of the u.s. red lines, particularly on , canadian suggest accounting the intellectual value of software put into cars, and he said it could lead to fewer jobs in north america, particularly the united states. he doesn't like their proposal on dispute resolution. there's a long way to go, but the one good thing is he's on a brass that they are going to keep talking and they do plan to meet in mexico city at the end of february. vonnie: the responses from the canadian and mexican representatives, did they take what robert lighthizer was saying and agree? for was there a ton of dismissal? michael: the don't really agree. the mexican economy minister talked to a lot

robert lighthizer. we're, as you know, negotiating a new deal with nafta. we're renegotiating our deal with south korea which has turned out to be a disaster for this country. it was a deal that was going to create 200,000 jobs, and we lost 200,000 jobs. we're renegotiating that. nafta's moving along pretty well. i happen to be of the opinion that if it doesn't work out, we'll terminate it, but i think you're doing pretty well, bob, from what i understand, so we'll see how it all works out. and we'll be doing other trade deals. we're in the process of negotiating with other countries also, all of which have treated us very unfairly. we had poor representation for many years, and it's hurt our work everything, our factories -- workers, it's hurt our factories, it's hurt our companies, and that is stopping. you're seeing what's happening with the stock market. people are appreciating what we're doing. the biggest thing we've done probably is regulation and followed closely behind by the greatest tax cuts in the history of our country. but i think regulation i

we will hear from investor lighthizer tomorrow after meeting with his canadian counterparts. kind of pitch speech we have from president trump of the weekend in davos, is there a sense he can be having second thoughts or at least a softening when it comes to pulling out of trade deals like nafta and tpp? michael: there's a lot of hope that is the case. he has been under tremendous pressure from interest in the business community and agricultural community. not only did a congressional delegation come here but a group of american farmers are in town to meet with the negotiators personally and make their case that if there is a pull out of nafta, it will hurt the u.s. economy in her people in their specific areas. that is all getting to the president and there is hope among the other two countries and their delegations that he may allow talks go on. he might suspend them for a while to get past the u.s. and mexican elections, but not cut them off. betty: overall, how are people handicapping the outlook for the negotiations? michael: in general, they think that if the investor i

something robert lighthizer called and he lived by attack.fficials warned they will leave the negotiation table if president trump decides to trigger a six-month process to withdraw from the deal. pulling out of nafta can have a costly impact on the american economy. which according to the u.s. trade rep enjoys a billion-dollar surplus in agricultural goods with canada alone. about which canada's ambassador to the u.s. that canceling nafta would be bad for manufacturing and farming. lawmakers in border states are asking the trump administration to rework nafta, not end it outright. the next round of talks is set for january 23rd in montreal, canada. >> bret: thank you. overseas, the russian military is conducting massive drills involving truckmounted launchers for intercontinental ballistic missiles. the defense ministry says the exercise will focus on the deployment of missiles and fending off possible attacks by enemy scouts. but will not involve practice launchers. the maneuvers are the latest in a steady series of russian military drills.

robert lighthizer while slightly more upbeat that after past -- and then after past negotiations, and a and canada are taking advantage of the u.s.. he agreed to continue the talks, but said they have to move much faster. >> we have finally began to discuss some of the core issues. this round was a step forward. but we are progressing very slowly. to our citizens who are operating in a state of uncertainty to move much faster. michael: he told reporters later he is not having a deadline on the talks, but he expects significant progress to be made in the next month. he rejected a canadian plan to increase north american-made coontent and -- content in automobiles. still, the canadian foreign pleased says she is with the direction of the talks so far as mexico's economy secretary says the three countries are on track to reach a deal. ors will work until february until they reconvene in mexico city. lighthizer says they will continue to talk even though there is a meeting in mexico and one in the u.s. later this year. president trump says he will ask for an extension on fast-track tradin

trade representative robert lighthizer hopes a deal can be done to save nafta according to the republicanhairman of the house ways and means trade subcommittee. the latest round of talks are due to wrap up in montrÉal later. but major issues still remain unresolved. a member of the ecb's governing bank mustid the in qe as soon as possible. it says the program has done what was anticipated and there is not a single reason for continuing with it. last week, mario draghi said there were signs of rising inflation, but patience and persistence are still required. shares in kingdom holdings soared by the 10% limit after the chairman was released from detention at the ritz carlton hotel in riyadh. a senior government official told bloomberg the billionaire returned home saturday after reaching a settlement with authorities and will remain at the helm of his company. among bankers has slipped. sentiment at banks have worsened for seven of the last eight quarters. as aout of tendency brexit risk to london's dominance as a financial capital, and a third of banks say there is a high likelihood of ma

trade representative robert lighthizer feels. he arrived here today, spent the day talking to u.s.ongressional delegation here to see what was going on. dide left, he looked grim, not say anything to reporters, just headed out. however, members of the congressional delegation told us they think there is some reason to be up beat. a republican representative from washington, chair of the house ways and means subcommittee, said he senses a change in tone and says that people are starting to feel optimistic. i talked with a michigan democrat who said he doesn't think robert lighthizer is going to be pulling out of the talks. >> there has been a lot of talk about whether the u.s. would walk away from the talks, whether the president wants to stay in. you get any impressive -- impression from the ambassador? >> i don't think you solve problems at this point by walking away. if it gets to a bad position, but i think there needs to be continued work. >> you think the u.s. will stay at work? >> i think the u.s. will continue to work. michael: he says there is still a lot of work to be done

remember in washington, couple months ago, lighthizer said he was disappointed from what he heard fromexicans. the question is have they improved their offer enough to keep going and has the president seen and heard enough from american is this and agricultural interest that nafta is in their best interest, in the best interest of the u.s., that he will back off of his talk of pulling out of the treaty? david: we will come back in three hours time to find out the answer at 11:20 eastern time. alix: still joining us is stewart warther of b.n.p. paribas. trump will get his first state of the union address tomorrow night. is there an asymmetric risk in the speech tomorrow? stewart: there isn't and if you look at price action around the trade topic over the last week, emerging market equities and dollars was the best performing global index last week, up 3.5%. part of that was if you look at it like a relief rally around nafta. i think as that sets up this week and the potential for some hawkish trade rhetoric potentially at the state of the union, that is negative. particularly we are loo

lighthizer somewhat surprisingly rejected the canadian proposal for ways to improve content in cars.till remain on dairy and agriculture, government procurement and the sunset clause. a lot remains. he says a have to make progress on these things or come up with some ideas in the next month. david: mike mckee in montreal, it is time to come home. you have done what you could. thank you so much. trader nafta or china plays a major role in the state of the union address. to give us the lay of the land, we welcome brian, cohead of a lobbying practice in washington. he is a former chief international trade counsel for a finance committee. welcome to the program. good to have you here. give some advice to the president. trying saw him in davos to reach out to the world. what can he say tomorrow to move forward on trade? guest: the president has a different take on trade than previous presidents. he has a focus on deficits. some of the language he has used, like in davos and aipac, he is welcoming trade in the united states, it is seen as more positive. there are quite a few landmines. dav

robert lighthizer this morning saying nothing as he came and went other than to wish me a good morning has been the inscrutable one. we don't know where the u.s. comes down on all this, but a call this man who talk to him yesterday said he seemed more optimistic. in an hour we should find out. mark: what is the sunset clause the u.s. is proposing that could cancel nafta within five years? the canadians and mexicans maybe not so keen on that. what will come out of this issue? michael: the u.s. proposed that the treaty would automatically end every five years unless it were renewed by the countries involved. mexico, canada, and a lot of other people say you can't do that because it gives business uncertainty. why would you invest in any place if you did not know if you would have the same rules five years from now? the canadians and mexicans have that if you review every five years and not automatically cancel and a group would be set up within nafta to measure the progress of the treaty and the measure of the results and be able to report to the three countries every five years, and it

mexican i understandr, who was on bloomberg this morning from davos, negotiates with both robert lighthizerustr representative as well as with wilbur ross, secretary of commerce. in fact, foreign minister who has a senior position in the cabinet, has his own back channel arrangements and discussions, both with jared kushner and john kelly in the white house. sometimes, this is a good thing. sometimes it is not. because you can get all sorts of things confused. you don't really know who is in charge. you don't always know which of the channels has the president's blessing. in this case, one can suppose that kushner has the president's blessing since he is his son-in-law to you can't really know that for sure. it is a little bit confusing who is negotiating what. i guess this is not new in the trump white house. i guess everybody else has pretty much the same problem. even the u.s. senate. foreignrom your time as minister of mexico, you have been involved in complicated, difficult international negotiations. can you see a path from mexico's point of view, if you were advising the president no

we just heard michael mckee on the ground, wrapping up some comments from robert lighthizer, the u.s.trade representative, who says there is some progress being made, and he also said the next round of negotiations is set for february. things are moving forward and looking for the reaction here, we are not seeing much in the currency markets. here's the dollar versus the mexican peso they came off the highs a little bit of the dollar still higher by .5%. not much movement there, same goes for the canadian dollar. similar movement as we saw it come down from its high of the session a little, but not really seeing much reaction. i have been watching automakers and industrial today, we have automakers trading lower and caterpillar turns lower my 2.5% as there is perhaps some concern about trade negotiation going forward here. in addition to that, as we get towards the end of the month, that means on february 1, we get car sales, u.s. auto sales and new vehicle sales are acted to have fallen year-over-year in january. we get those numbers in a couple of days and if you take a look at the

the extension by law is three years and comes as ambassador lighthizer expressed frustration with thelacial pace of talks so far. >> i'm hopeful progress will accelerate soon. we'll work very hard between now and the beginning of the next round and we hope for major breakthroughs for that period. >> the next round begins february 26th in mexico. all three countries today expressing cautious optimism on negotiations with lighthizer saying the u.s. is committed to moving forward kelly? >> kayla, i'm not surprised he's frustrated if the extension is a three-year extension that's beyond the president's first term in office. >> well, that was an extension that was put in place by statute back in 2015 when president obama was negotiating the transpacific partnership and republicans in congress wanted some checks and balances. they wanted a so-called fast track to renegotiate some of these deals if they didn't like where they ended up. now that process is being put into place that republicans themselves negotiated. that's a three-year extension by law. we're trying to figure out if it's poss

robert lighthizer said the trump administration will always defend american workers, farmers, ranchers, and businesses. in targeting imported like washing machines is often complicated by the fact that many of the parts used to create the items are american-made. this is the president prepares to travel to the world economic forum in davos, the first u.s. president to attend since bill clinton. experts warned the president's penchant for aggressive policies could overshadow the gathering. >> is this a harbinger of things to come? the president has a number of divisions on steel, aluminum, chinese intellectual property theft. >> the president's chief economic advisor doesn't seem concerned. >> the president believes we can have win-win agreements. america first is not america alone. >> interesting there, bit of pushback from a usually reliable ally. you may remember south carolina's governor an early proponent of the president's campaign in 2016 and whose estate has recently opened a 380 million dollar samsung facility, calling the president's decision to impose these tariffs on importe

i'm thrilled to be joined by ambassador lighthizer as i

robert lighthizer striking a more positive note siding progress. there is more work to be done. .> we are progressing slowly we elwood to our citizens who are operating in uncertainty to move faster. >> we are now joined by michael mckee, who has been in montrÉal for the nafta negotiation's. the theme here for the latest round, there were signs of flexibility. nafta is saved for now. >> maybe not. it is saved for the next month. aty will meet in mexico city the end of february. a lot of their and -- thorny issues remains. we thought canadians tabled some creative ideas on those there on the issues, particularly in the area of autos to increase the cars by counting computer and heiser comet light in the u.s. trade representative shot that down at the news conference. here's what he had to say. presentedomobile idea , when analyzed may actually lead to less regional content then we have now come if you are jobs in the united states, canada, and likely mexico. this is the opposite of what we are trying to do. >> canadians tabled a proposal to deal wit

robert lighthizer whereas you know negotiating a new deal with nafta. we are renegotiating or deal with south korea which has turned out to be a disaster for this country. it was a deal that was going to create 200,000 jobs and we lost 200,000 jobs. are renegotiating that. nasa is moving along pretty well. i happen to be of the opinion that if it doesn't work out we will terminate it. i think you are doing pretty well from what i understand so we will he how it all works out. other tradebe doing deals. we are in the process of negotiating with other countries also. all of which have treated us very unfairly. poor representation for many years. it has hurt our workers. it has heard our factories. you're seeing what's happening with the stock market. people are appreciating what we are doing. the biggest thing we have done probably is regulation followed closely behind by the greatest tax cuts in the history of our country. i think regulation is on par with that. us.t of people are watching i'm going to davos. we will be talking about investing in the uni

ambassador lighthizer is doing a great job renegotiating nafta. will be pect it renegotiated or we'll pull out. an update give us on treasury's progress on askedst that congress for. i believe we were expecting it in january. as were working on it speak. it should be released in the near future and something focused on. >> if i heard you correctly, you are predicting that be a great increase or decrease, number of the american taxpayers that used to get a refund -- the same get a will still refund that have been expecting to get one all along. is that correct? >> that's correct. then address the democrats' charge that you all are juicing this? >> i think this is another ridiculous charge. i specifically want to make clear that there won't be a change in that number. we have people that have worked carefully on this. objective is not to have taxpayers overwithheld so they owe money at the end of the year. we have a system. 90% of the people will get money. the same number of people will get refunds. actively encourage and make sure that taxpayers u

ambassador lighthizer is doing a great job renegotiating nafta.expect that will be renegotiated or we'll pull out. >> we know you have a lot going on with taxes, but since we have you here. can you give us an update on the list of russian oligarchs that congress was asking for. >> we're working on it as we speak. it should be released in the near future and something we're very focused on. >> if i heard you correctly, you're predicting that there won't be a great increase or decrease, rather, in the number of american taxpayers who used to have a refund basically the same number that will get a refund that have been expecting to get a refund all along, is that correct? >> that is correct. >> can you then address the democrats' charge that you all are juicing this? >> i think this is another ridiculous charge. that's why i specifically want to make clear that there won't be a change in that number. we have people who have worked very carefully on this. our objective is not to have taxpayers overwithheld so that they owe money at the end of the year

canada this week filed a wto complaint over american duties, a move described by robert lighthizer asvised attack. armed thieves have stolen jewels and other goods from a boutique in the paris ritz hotel with reports valuing them at $5.5 million. police arrested three x -- three suspects. several high-end jewelry stores have been targets of dramatic robberies including cartier. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt: thanks very much for that. don't fight the central banks to rid the fed, the boj, and the ecb are all sending broad signals that they are bracing for a period of somewhat accelerated inflation. is it time for investors to well?their outlook as traders will be looking to the ecb's december accounts, published later today, for mario draghi's views on inflation, as well as you might -- replace him. who might replace him. joining us is richard jones-drew and richard, what are you expecting for stuff from the ecb? from any time you get fed minutes or ecb account, you are always looking

and described robert lighthizer as ill-advised.aining of hard-line stance on brexit, do many the u.k. pay for the privilege of their firms having access to u.k. --e.u. markets after leaving the bloc. makewant britain to substantial contributions to the e.u. budget and adhere to european law. has named new people to the board that may position one as his successor. said he is in remarkably good health and the changes do not mean he is less passionate about his company. they also said the u.s. tax cuts make companies more valuable and stock ownership more attractive. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. ♪ thank you, let's take a look at the market open in tokyo and seoul. we are looking at the fixed income and currencies with nafta talks turning pretty cold, potentially up to around six. let's get the latest with sophie kamaruddin. sophie: that send jitters through the market, the bond space and dollars. when it comes to th

i am not going to, i will let ambassador lighthizer handle his negotiations in the fashion he wants todle them, and when he thinks it is time to make them public, he will make them public. last question. >> you will be in a hotbed of globalization in davos. you are going to get a question about the tariffs. the question is often asked, isn't this just hurting american consumers who want to go by washing machines or solar panels, they will pay a higher price at the store when they do that. how do you answer that? >> on the washing machine situation, as i said, both of these companies are opening manufacturing plants. one could be opened within the next 30 days or less, which will hire 1000 new employees there. they will be manufacturing washing machines here in the united states. we do have a very large domestic manufacturer of washing machines, so when we looked at it, studied it quite extensively -- this was a very rigorous process that went through bipartisan committee. they made a recommendation, and then the trade ambassador held hearings as well. he made a recommendation. and then

trade representative robert lighthizer said some progress was made but it's moving very slowly the u.sodernize and rebalance the trade agreement. more on naflta, immigration, the state of the union we'll see tomorrow with former new mexico governor bill richardson and former senator and governor bill greg governor gregg, what are you expecting to hear from the president tonight? what would you like to hear? do you want to hear what we call the state of the union president or the flor of the u.n. president? >> state of the union in my experience is broke into two types. one where the president lists a litany of things he wants to do over the year. and coming year. and it's usually pretty boring, and most of the stuff doesn't get done or states of the union where the president gets a thematic and upbeat, positive view of america and where he wants to take america. i hope it's the second i hope we have a very positive speech i hope it's not too much about the president himself. i hope it's more about where this country should go, how it can get there, and why this country is really on a v

we're trying right now with bob lighthizer and the whole group we'll have a good chance, but we'll seeppens and john, i want to, and sara, you can tie it off, it occurs to me president trump is not broadly popular in europe. to put it mildly but when he goes overseas into these environments, whether it was his earlier trip to saudi arabia and so forth, he seems to do pretty well tonally, getting him out of the bubble of the white house, john, seems to work favorably for him. do you see it that way >> well, any president of the united states is going to get respect and deference from a small group of other counterparties other leaders of governments or leaders of business. so you go to davos and you see that people are eager to see him, and he is enjoying their attention. >> he likes it >> that's right. it's a different thing if you get popular sentiment involved so you know, we see the president not going to britain this year because of the concern that there might be large-scale public protests. this is a different environment and a favorable one for him. >> i agree with that >> sara,

robert lighthizer says progress has been modest but the u.s. wants more in the coming weeks.4 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am yvonne man. this is bloomberg. haidi: thank you for that. asia-pacific markets are headed for declines, and extending the declines gasol overnight on wall street despite being on the verge of their third best january on record. watching allt is of the action from singapore. is this really the bond market story, we're seeing some contagion, or are you watching this going this is what should happen? would you feel more comfortable we got some logical pauses along the way? >> that's not fair, we've had a complete lack of relatively recently, and it makes sense there are corrections beard in the the rally seem healthier when there are some pullbacks. year,of risk events this whether it was the fed meeting, labor data, the state of the union, the supply schedule, there is so much going on. after an incredible start the year, massive gains in equity markets all over the world, it does make sens

you have lighthizer who doesn't believe in the world trade organization and might use a bad ruling to go after the wto and they still have peter navarro in the white house who would like to dismantle and repatriate global supply chains. there's a risk out there we forgot about we've all been juiced up about these tax cuts. >> mr. paul, from your organization's point of view, are you pleased with what you're seeing coming out of the white house? are you concerned about the consumer pushback if they go, wait a second, why am i paying more for my washing machine? >> i don't see a big consumer price effect because you already see samsung and lg breaking ground or producing washing machines in the united states. they've been playing whack-a-mole with trade policy before you see a tesla giga factor ramping up to make solar panels. i think the supply will fill in. i think as the president indicated, it's good for jobs. i have disagreed with this administration on many things, but i think they're channelling ronald reagan on trade policy. i think it's good. i think the trade -- trade deficit

rex tillerson, wilbur ross, robert lighthizer and kirsten nielsen amongst others.at is a big and powerful delegation. >>> now listen to this, more than a hundred big name ceos wrote a letter to congress asking leaders to save daca. names like bezos, mark zuckerberg, cook, all of them on that list. but next, the president honors martin luther king live right here. yes, the third hour of "varney & company" continues. stumbling. >> varney and country. >> yeah. ♪ ♪ hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. stuart: moments from now we expect at te white house president trump is going to sign a proclamation to honor dr. martin luth

i'm also directing ambassador lighthizer to begin supporting industry discussions. to dissolve duties on these and similar products in the u.s. and china. we support a resolution that is in the interest of american workers and also the american consumer. we are going to benefit our consumers and we are going to create a lot of jobs. our action today helps to create jobs in america for americans. it will provide a strong four lg and- samsung to follow through on the to build major, many fracturing plants were washing machines here in the u.s.. they do this, a lot of manufacturers will be coming to the u.s. to build washing machines and also solar. actions uphold the principle of fair trade and demonstrate to the world that the u.s. will not be taken advantage of any more. our companies will not be taken advantage of any more. our workers are going to have lots of really great jobs with products that are going to be .ade in the good old usa that is what this is all about. i'm willing to start signing. we will go here first. this is to facilitate positive adjustment to

robert lighthizer, where as you know, we are negotiating a new deal of nafta. we are negotiating our deal with south korea, which has turned out to be a disaster for this country. it was supposed to create 200,000 jobs and it lost 200,000 jobs. we are negotiating and nafta is moving along well. i am of the opinion that if it does not work out, we will terminate it. but i think you are doing pretty well, bob. so, we will see how it all works out. we will be doing other trade deals and are in the process of negotiating with other countries, all of which have treated us unfairly. we have poor representation within our factories and that is stopping. you are seeing what is happening with the stock market. people are appreciating what we are doing. the biggest they would have done is regulation, followed closely behind by the greatest tax cuts in the history of our country, fall think regulation will with that. a lot of people are watching us. i'm going to davos. we will be talking about investing within the u.s., people coming and spending their money in the good o