trump that japan should no longer or not be lumped in with china or mexico. so from about midway this last year, mr. trump had toned down the talk about japan. it is more about japan will rise or fall in terms of how trump approaches the global economy. i am confident and i'm glad i'm confident he's not going to attack japan directly. i worry he may attack mexico or china directly. >>> the world will get its first taste of a trump presidency in two weeks, and no one inside or outside the country knows quite what to expect. but there are signs it won't be business as usual, especially when it comes to relations with china. earlier nhk world's spoke with nihada in beijing, who has been looking at the situation from the chinese perspective. >> president xi jinping made it clear in his new year's speech he wouldn't soften his stance over issues that put his country at odds with the u.s. >> translator: china has resolutely defended its position on its territorial sovereignty and maritime rights while upholding peaceful development. the chinese will never accept any

trump that japan should no longer not be lumped in with china or mexico. from about midway this year, mr. trump toned down the talk about japan. it's more about japan will rise or fall in terms of how mr. trump approaches the global economy. i'm confident he's not going to attack japan directly. i worry he may attract mexico directly. >> i'll leave you with a check on marks. >>> onto other stories we're following this hour. china has warned the united states to uphold its one-china policy and not side with taiwan. the talks take place over the tour. tsai is scheduled to transit through two u.s. cities. the remarks appear to be warning to u.s. president-elect donald trump. trump angered china by speaking with tai over the telephone after elected. he also cast doubt over whether he will uphold the one-china policy. the u.s. has acknowledged china's policy since 1979. >>> japan and nato have agreed to increase defense cooperation. the defense minister was at nato headquarters in brussels for talks on thursday. >> translator: the japan/u.s. alliance is the corn

trump that japan should no longer not be lumped in with china or mexico. so from about mid-way last, this year, mr. trump had toned down the talk about japan. it's more about japan will rise or fall in terms of how trump approaches the global economy. i am confident, i am glad i am confident that he's not going to attack japan directly. i worry he may attack mexico or china directly him. >> you can catch our report online, together with a full transcript, look for nhk world and business wrap. that's a look at business news, i'm going to leave you with the markets. >>> the world will get its first taste of a trump presidency in two weeks, and no one inside or outside the country knows quite what to expect. but there are signs it won't be business as usual. especially when it comes to relations with china. earlier, nhk world's mitsuko nishikawa spoke to a reporter in beijing who has been looking at the situation from a chinese perspective. >> president xi jinping made it clear in his new year's speech he wouldn't be softening his stance over issues that put h

plan, a fiscal plan you are going to have no physical plant but you are spending time poking at china or mexiconing that the dollar is high in their cheating. at the end of the day you do not end up with anything. specificallytalk about china as if there is not a third, fourth, or fifth lower cost producer out there that would take china's place, the more markets are worried that you are going to go out on a attention. joe: very interesting stuff. you will both be sticking with us to talk about europe. this is bloomberg. ♪ scarlet: bloomberg editor at large cory johnson joins us from san francisco with a more. actually, the yahoo! numbers just came out. perfect timing. fourth quarter adjusted earnings beating analyst experts -- estimates. revenue, $960 million higher than the anticipated $907.9 million. we look at the company's earnings, they do not move the stock price anymore because verizon is buying some of yahoos key assets. get anstion is, we update from the company on the data breach that has caused verizon to rethink how much it pays for those assets? >> we're going to get as little as

doesn't that's send a message to the leaders of china or mexico. that trump walks the talk and makes good on his word and they need to pay attention to it. >> i think they are trying to figure him out. but i have to say, the -- whenever you have thrift contents of the travel ban, the sheer incompetence with which it was rolled out did not do us any favors in the world. it made a lot of people angry. europeans went into their normal mode. it gives you have the impressions americans are anti-islam after all. we need dramatic immigration reform on many front. but you have got to talk to the experts. you can't have a bunch of political hacks behind closed doors saying that sounds good, put that in. it doesn't work like that. in washington experience is a dirty word. when you are dealing with matters of international affairs and state craft, you better have somebody playing in that deck of cards with some experience. dagen: repairing relations with russia. does that mean we are getting in bed with iran? >> it does indeed. when people talk about we shoul

charlie: can the united states risk a trade war with china or mexico? it's not a good idea.rade benefits -- the problem of benefits are the andsed -- diffused invisible. you don't walk in and buy a pair of shoes and you just saved 12% because this was purchased someplace. 320 million people are buying things cheaper than they would otherwise. effects, taking somebody out of a job they've had for 25 years when it's too late to retrain them or anything -- they are very specific and terrible. what you want to figure out is a way to keep the societal benefits and take care of the -- they arereally the roadkill, basically, in this. and there will be roadkill. there's no sense getting yourself. we start with the textile mill at berkshire. 1/2 hour workers only spoke portuguese. they work in hot, loud conditions. they spend 20 or 25 years on looms. when textiles moved elsewhere, their economic lives were ruined. that's going to happen. that is part of trade. and the benefits, you know, somebody buys whatever textiles we were turning out, handkerchiefs, anything, they may buy them a

we can't get everything from china or mexico. occasionally you have to get a product made in the united states of america. so i will work very hard not only on nafta, but other areas. >> there is no question that it hits on other items. joe biden says he doesn't think 500 billionaires are behind every problem that americans have. you mentioned automation. but they talked about the reason we lost manufacturing jobs, is because of automation, innovation. >> chris, i think most of the serious students of the issue think it's a combination of factors. but there is no doubt in any objective economist's mind, and i read the studies, we lost millions of jobs because of trade agreements. automation is a serious problem, factories can produce more with less workers. >> it's a problem for the next generation. >> it is a problem for the worker who has been replaced by a machine. but i think we need to change the culture of this country and we cannot allow corporate america to make every decision just based on their bottom line. even with au

am i supportive of those corporations who throw american workers out on the street and move to china or mexico do you think there's space to work with trump? he's talked about getting rid of regulations. >> should a small business or large business be able to pollute the water or the air or the food? no, i hope you don't believe that. >> i don't pollute air, water or food. however, when these rules and regulations come in to cover all of business and you're start beistarting, trying to start a business, it's tough enough -- >> i think we should take a look at it, but the devil is in the details. some of them may not -- it's very easy to blame barack obama for everything, by the way. some of those regulations may be state, maybe they're local. i don't know exactly the federal regulations. >> but you're open to looking. >> sure, if there's something why not take a look. but if you want to pollute our air or water, they want to get rid of those rede regulgulation don't agree. i think we have to protect the environment. >> we'll have more when we come back. (vo) the holidays may be over but if you

technology or cutting costs or moving manufacturing to where it's cheaper, like vietnam, cambodia, china, or mexico. increased gross margins translate into dividend broofts and bigger buybacks. sometimes it simply came down to how many people can we fire? the more the better. gross margin growth was so important it eclipsed organic revenue. it was a key metric for many money managers. fourth, we liked companies that engaged in self-help either by spinning off slower divisions or breaking themselves up because the parts were worth more than the whole. or if there was no breakup opportunity, we wanted companies to make acquisitions. maybe that would fuel some growth. then again, throw their hands up and put themselves up for sale so we could get a quick return on the stock. in fact, if we didn't get something on that menu, we tended to avoid the stock because it just didn't have what it took. by the same token, there were a bunch of things we didn't want from our stocks. for example, we didn't want some yahoo management that hired a huge number of people while revenue growth slowed and expenses skyro

am i supportive of those corporations who throw american workers out on the street and move to china or mexico about the small businesses? do you think there's space to work with trump on that? he's talked a lot about getting rid of regulations. >> should a small business or large business be able to pollute the water or air or food? >> i don't pollute air, water or food. however, when these rules and regulations come in to cover all of business, and you're starting, trying to start a business, it's tough enough -- >> i think we should take a look at it, but it's, you know, the devil is in the details. we've got to see what those regulations are. some of them, by the way. it's very easy to blame barack obama for everything, by the way. some of those regulations may be state, maybe local. i don't know the exact regulations. >> but you say you're open. >> of course, if there's a regulation that doesn't make sense, why do you keep it. but some of them, you're talking about you have some folks out there who really want the freedom to pollute our air or water. they want to get rid of those regulati

if ford decides to make all of their cars in the united states but use few car parts from china or mexicohose parts get taxed, does the car get taxed? you also have all these unintended consequences, what happens to prices, how do other countries retaliate or respond to this? also would this accelerate automation in the u.s.? as companies try to onshore jobs and don't want to pay expensive u.s. labor, would they just -- >> meaning robots. >> -- automatically jump do automation? that would defeat the purpose. >> all kinds of questions. of a border tax. >>> now let's move to this lawsuit, larry, this is my question for you. citizens for responsibility and ethics in d.c., right, they filed the suit essentially the grounds, they're saying the president is violating, you know, the u.s. constitution, which says elected officials, you know, like the president can't take money and gifts from foreign governments, and that, you know, the fact that trump is owning his business, continuing to get money then from those foreign groups. do you think that lawsuit has legs? >> i do think the lawsuit has l

what it means if we get into some sort of trade war with china or mexico.e'll talk about all those things today. >>> there have been plenty of leaders and laggards in the march from dow 10,000 to dow 20,000. dom chu has the stocks that played a crucial role getting to this milestone and the ones that didn't. >> it's a pleasure to be here. this is my first time with you guys at the new set. i'm a little excited. i got butterflies. >> because of dow 20,000? >> because of dow 20,000. >> so it's based on a meaningless thing. but you're here. try to pretend it means something. >> many of the professional money managers out there may think it means nothing, they may be right, but there was a good amount of adrenaline at the open of the new york stock exchange. i was there yesterday. there was a sense of real excitement. you get the sense that if people can get excited about the market, it's a good thing. the reason why we're bringing this up, if you look at the overall picture among current members of the dow, the last time we crossed it was 2009. nike is in ther

. >> rose: can the united states risk a trade war with china or with mexico? will it have a -- >> it's not a good idea. the problem of trade is that the benefits are diffused and invisible. so you don't walk in and buy a pair of shoes or some underwear or anything and it says, you just saved 12% because this was purchased by so and so. 23 million people are buying things cheaper than they'd otherwise, but the harmful effects, taking somebody out of a job they've had for 25 years when it's too late to retrain them for anything, they are very specific and terrible. what you want to figure out is how to keep the societal benefits and take care of the people that will be road kill. there will be road kill. no sense kidding yourself. half our workers at berkshire only spoke portuguese in the textile, they worked hot conditions and spent 20, 25 years on looms. when textiles moved else with, their economic lives were ruined. that's going to happen. that is part of trade, and the benefits, you know, when somebody buys textiles we were turning out, they may buy them a l

if i ran a company in america, particularly one that deals with china or mexico, i would be worried aboutfrancine: all right. tom: erik nielsen, thank you so much. there is a tube strike. francine: london is paralyzed. tom: we make light of it but it is inconvenient for all sorts of people. it is only for 24 hours. francine: right. this is huge because it could cost them 50 million pounds tomorrow. tom: coming up on "bloomberg surveillance," we will look at some divergences and disparities across the atlantic. this is bloomberg. ♪ tom: this morning, the pound sterling and turkish lira are .eakening it is transatlantic sliding in this hour. we will have alberto gallo. and all the waiters bartenders in london, do they go back to where they came from? the procedural complaints begin. the president-elect and republicans, they are the majority. good morning, this is "bloomberg surveillance." we are live from london. we begin to weeks on the road. london and on to dov vos, switzerland. it is all about trump. francine: he gets inaugurated, 11 days away from that. we are also getting significant

china or mexico? whether that is border taxes, the beginning of the building of the wall, that will t ypify, i think, his first 100 days. very little discussion has been placed on the fact that he doesn't have the ability to impose a border tax without congressional approval. even his ability to impose tariffs on imports, unclear whether he can do that without involving congress. it really is a question of how much congressional support he can get for those measures, given that it could have a huge economic impact on the u.s. economy. francine: stephanie baker, thank you. jeremy cook stays with us. bloomberg will be speaking to the former u.s. defense secretary, leon panetta, later on. here's something to look ahead to in the coming week. bloomberg brings you full coverage of the annual world economic forum in davos. highlights include a panel on the future of finance. guests include john cryan on tuesday. on wednesday, a discussion on the crisis of the middle class. i'll be hosting christine lagarde,

have if we have a new tweet, let's say, that sounds very bearish on tariff protections against china or mexico, that could send the market a little bit lower. but if we get something a little bit easier along the lines of what mr. wilbur ross was talking about last week, just some renegotiation, then the market maybe moves a bit higher. we think investors should focus on the economy, focus on those cyclical sectors and use those swings not sort of apocalyptic swings but higher and lower swings to take their positioning more to their advantage. >> sharmin, how do you navigate around potential tweets on tariffs of china? >> at these valuations of china that are very high, what tends to see downdraft. probability of 5% downdraft from here is 100%. so we tell our clients that you should actually expect downdrafts when equities are so expensive. the probability for 10% downdraft is actually over 60%. so our recommendation is that when you look at the economic backdrop on a global basis, it's improving, it's solid, the underpinnings of the u.s. economy are solid. we've had that view for a long time.

for mexico more than coming here quite frankly the economy here sucks if you're working or middle class. now more come from chinahan mexico. making trump's appeal or lack of it a key part of the trump equation. so i hung out with an early advocate to see how well his message play snd. >> we're close to 2,000. >> so did you start the group? >> yeah. >> why? >> i love this guy. i mean, trump, he's for real. >> because you like what he has to say or how he says it? >> both. >> what do people say? >> they love me. i'm like a panda bear there because there isn't that many chinese americans there. like a panda bear in the zoo. there aren't that many. i'm jacob from msnbc. what do you think of david's shirt? >> is it serious? >> it's serious. >> i think it's kind of creepy. i don't think you're creepy but i think trump is kind of a creepy person. >> it would take me less than 30 seconds to convert her. >> he doesn't support anything i believe in. >> who are you supporting? >> bernie sanders. >> this is anath member of the group. >> tony convinced me in 30 minutes last week. >> what was the winning thing david said? >>

mexico and china? >> well i think the president-elect is going to bring change to the international order to some degree, as he's going to bring change to america. whether it's china, mexico orm somewhat amused in listening to the prime minister of canada, who sent off this very sorrowful message on the death of fidel castro, who was a tyrant. i find that a little amusing, what we're seeing particularly in terms of mexico is the art of the deal, is negotiation. he is going to build that wall and is determined to have mexico pay for it. now you're going to start to see the back and forth as we go through this. there's no question in my mind he's going to proceed with this. mexico is going to resist and we'll see what happens. this is definitely negotiation and there will be leverage and all of that kind of thing. >> to that point, just point of fact, mexico says we're not paying for it. but we will see what happens. the art of the deal indeed. here's what mexico's economic minister said today, directly in response, jeffrey, to the threat of the 35% tariffs and a major border tax as trump calls it. he said it's very clear we'll have to be prepared to immediately be able to neu

whether it is nato obsolete or talking about building a wall with mexico or banning muslims or the questioning of the one china policy. there is a great deal of ambiguity of the foreign policy and what it will look like. i think there will be a lot of people watching closely wanting to see if there is anything to read in the tea leaves based on the inaugural address. we know mexico's foreign minister is scheduled to visit washington, d.c. next week. that could be an important step. a lot of reconciliation work to be done with president-elect donald trump and mexico. that is a sign there could be more reconciliation on the cards. and before everybody around the world very much watching this inaugural address with intrigue, curiosity and apprehension. john and christine. >> clarissa, thank you. >>> we are joined by greg valliere and political reporter eugene scott and salena zito. and cnn presidential historian tim naftali. we had athena jones talked about this being day one for president donald trump. andy card, the chief of staff, for george w. bush, he knows what it is like to walk into the building on this d

. >> senator thune -- >> any reassurance that there would not be massive tariffs on china or mexico as a result of this administration? >> i think that he -- what i got out of it was that one, when you're negotiating you want to go in with a good -- and some of the statements that are made put other countries on notice and alert them to the fact that it's not going to be business as usu usu usual, cutting good deals on the front end is important. i think people generally would agree with it. there have been examples where as i said companies and industries in this country have been taken advantage of because other countries have abided by the same rules of trade that we follow and we don't sometimes enforce our trade agreements or enforce our laws. >> do you feel comfortable with ross's expectation to direct federal spending in any sort of transportation or infrastructure package? >> well, i suspect that with the condition by direct federal spending -- they've talked a lot about -- he talked about three different tiers of one being a way to get the private sector and leverage that. i t

headwinds and in the context, it is all eyes on mexico which will be the much greater variance in terms -- clearly the relationship with the u.s. and china and/orico will be the ones to watch out for in the em space. a bloomberg are customer, you can watch the show using tv go. jeremy --derful as because jeremy is on it, follow all the charts and functions, message as directly. tv go. let's stay on jeremy a bit longer. up next, as egypt gets back to the international bond market for the first time since closing its currency last year, we speak with their finance minister amr el-garhy. later, an interview with space minister of economic affairs. this is bloomberg. for more, tune into radio daybreak london. ♪ mark: stocks up around europe today, let's get a data check. >> not just around europe but globally, if you look at the all country world index, at its highest since june of 2015, we started off of the s&p 500 hitting a record high in the u.s. and gains followed in asia. the nikkei up 1.4% and the dax higher and sweden higher. pretty broad-based gains. the fx face, sterling what 25.80, the euro up 1/10 of 1%, weakness in the australian dolla

versus moving the factory to mexico or china, where you can cut those regulatory costs in half. a lot of the movement in the united states is not necessarily due to lower wages. it is due to the fact it is so much less costly to do business in china, india, germany. if we could reduce the cost of doing business in the united states through tax and regulatory reform, i think you will see a lot of the companies move that quickly. you have party scene five or six major companies say they are going to invest in united states. john: we are not trying to compete for which prices. guest: we can do that. we are a high wage country because we are a productive country. the problem i think is more that we cannot go forward with the most onerous regulations with the highest taxes in the world, whether you loved barack obama or not, let's face it, this was not a president that was pro-business. donald trump will be pro-business. he will say, let's put america first and make american companies number one again. it is about time. john: good morning. caller: good morning and thank you for takin

deficit so i don't know if the president is afraid of you know sanctioning china or talking regarding with china as he does with mexicory, very, it comes to my attention and gets my attention that this is happening. that's one thing. the other thing regarding the border is that this narrative, he is taking us at least 30 or 40 years back. let me explain. in mexico for more of a century we've had an antiamerican sentiment. that antiamerican sentiment left behind naf at a and started to occur. and i am sure that unfortunately even though that's a good thing. that antiamerican sentiment with all the consequences that that can have, we are feeling that the u.s. is treating us as enemies as friends. and we could become enemies. >> what would that look like because to the base of voters that put donald trump in office their perspective would be they don't care how they feel. you are where the conduit has become for these people to come in illegally and under nafta you have taken jobs but haven't given any back. >> i'm glad you mention security. mexico is an important factor. an essential factor for national security in the

the bigger one from an economic perspective, but a lot of jobs aren't just going overseas to mexico or chinaich he focuses on a lot. a lot of these jobs are being lost to technology and robots, i spent last weekend in lordstown, ohio at an auto factory there, that factory used to employ a lot of people in the 1980s and '90s. now it still produces a lot of cars, but they're being made by robots. he said there used to be a human who physically put a spare tire in the trunk, that is now done by a robot. so trump wants to begin this big push towards automation. >> it's big enough for us to remember, the market rally, that we have seen in the stock market post election is not correlated directly to a jobs rally that we may see. >> that's true. president obama was great for the stock market, the stock market almost tripled under president obama. we did see some jobs under his presidency, but the market was going up a long time before we started to see that jobs growth. just because wall street is opt t mystic, it doesn't give jobs. >>> we have to leigh it there. on that note, president trump today

really come a very inconvenient for people, but minor compared to how things may play out with mexico or chinabut he is is keeping people on the mark. many peoplehave so grappling with what this executive order means, so the question that begs itself is are they making it up as they go along? are to ai think they certain extent, and that won't worry president trump at all. he is not here to call him people down, to do anything other than to focus attention on him, unsettle people, make people think we have to pay attention to this guy. of him a combination wanting to assert american prestige, a bizarre way to do it, but that is what he wants to do, and for him to be the guy who's going to sort everything out. he is the dealmaker. he is the guy who's going to cause the problem and then cause the solution. yousef: we're seeing some comments from howard schultz on the screen as well. the response from american corporate scum of the latest ceos, doesom key this lay the groundwork for a protracted political fight in the united states between the trump camp and a lot of the opposition, not just in c

channel, if mexico was forced to pay for this, make it pivot away to russia and china to seek further economic ties, oi’ china to seek further economic ties, orare china to seek further economic ties, or? that is interesting, everything is happening at once, we also have the nafta trade agreement, the north american free trade agreement, mr trump said the north american free trade agreement, mrtrump said he the north american free trade agreement, mr trump said he will effectively rip that up or at the very least we negotiate. mexico says they would be prepared to walk away from the agreement if it was no longer favourable to mexico's needs and terms. at the same time the united states is walking away from the transpacific free—trade agreement which might open up things for china. the whole trade relationship between mexico and the united states is sorted up for grabs at the moment. that said, it is one of the most long—lasting and solid relationships in latin america, and what i was gaining in understanding from what mr trump said was that the united states continues to want to see a strong mexican economy and that somehow the wall will benefit mexico in those terms. it is still very

worldwide are even raising concerns of this plan because i don't see them going to germany or mexico or china to raise the concerns, and donald trump has been exactly right to call people out on this. >> if i'm a major retailer, why wouldn't i be nervous when i see a 20% tax on imimportaports? >> this is not a tax. it's border adjustment, what they do in all other countries. i know few people selling retail in the united states that are not selling retail into asia and europe. this is nothing new. it's nothing different. perhaps if you're just an accountant and you're looking at this statically and looking at your old business model, yeah, you see where it would be an added tax, but, in fact, it's not. the business model changes. your investment strategy changes because this encourages investment in the economy. it creates jobs. we get out of debt financing and into equity financing, so it's a plan that will really -- >> that's a longer term view, but, i mean, for michelle's point, for a lot of retailers, basically, you say, for the retailers already operating on thin margins, i mean, as you

or artificial intelligence machines and the like. that big task is not really about what your trade tariff is with mexico or china. that's a big question to all these democracies. i don't at the moment see anyone whose got a really convincing plan to deal with that. >> rose: what's the call of populism in europe. >> the populism in europe is there's a simple answers to your problem. if your problem is you feel alienated your income hasn't gone up enough your community's changed a lot because a lot of strangers have arrived, i'm going to erect barriers i'm going to ban people from coming to the country i'm going to put my country first. those are all very alluring things. an attractive superficially but are they really the answer to those people's problems. i suspect they're not. and either there are some basic things you learn in this world the more you trade the better off the countries are. open diverse societies are stronger and better and ones where people get more individual human fulfillment. democracy is the best system of government. how messy it is. international alliances are difficult and complicated bu

>> i don't think a trade war with mexico or china or any other country is a good idea.at is his prerogative, if he can implement that and get the republican congress behind him. but i don't think most of congress would describe that as a good idea. there was a reason free trade was supported by both republican house speaker paul ryan and democratic president barack obama. big picture, long term, that was in the economic interests of the united states. i think jackie is totally right that what this comes down to ultimately, whether you're talking about the tariff or the wall, is whether or not republicans in congress will challenge president-elect trump or whether they'll go along. >> okay. so let's talk about the physical wall, because if the united states builds a physically wall, the costs could balloon to what, $25 billion by some estimates, right? so will the wall, jackie, be more like a fence? >> that is an open question, carol. but one of your guests earlier today made the point that a lot of people who come into this country and end up overstaying their visas com

not about whats you're trade tariff is with mexico or china.t's a challenge for all these western democracies. anyone at the moment see who's got a convincing plan to deal with that. charlie: what is the call of populism in europe? george: the call is there's a simple answer to your problem. if you feel alienated after income hasn't gone up enough, i'm going to direct barriers and ban people from coming to the country, i'm going to put my country first. those are all very alluring things, at least superficially. but are they the answer to those people's problems? thereect they are not and are some basic things we have learned -- the more you trade, the better off the countries are. societies are stronger and ones where people get more individual human settlement. democracy is the best system of government, despite how messy it is. international alliances are complicated but it's better than the alternative. when you say to people what have you got to lose, i would say peace, stability and security and a tough hell of a lot. charlie: did we miss

whether it's mexico, china or others., if we do something that's clearly in violation of our obligations, then we're giving license to every other country to do the same. as i said most of the world's consumers are outside the united states. we need access to those other markets to support jobs here at home. so if they retaliate against us, we're hurt. and then finally, when we raise tariffs, it's a tax. it's a tax on the people in our country who are least able to afford it. low income americans spend a higher proportion of their income on tradeable goods, clothing, footwear, food. if you raise tariffs, which is a tax on imports, you are imposing a tax on the people in our society least able to afford it, people just scraping to get by as president trump talked about during the campaign. from that perspective it seems counterproductive. >> why don't you think the markets reacted? you've been warning about this. economists are warning about it. people on cnbc all the time warning about how a trade war doesn't help anyone,

you have some countries that will be in grace, such as russia, and this grace eventually may be mexico or china. on the flow side we're going from protectionism which is bad for manufacturers. finally on the risk appetite we're going from volatility that has been subsidized by central banks to a normalized volatility. what does it mean? it means that under these two-year plan from trump, you could have a 2:00 a.m. tweet that could ruin everything, all your positioning. so now that you take the context, you have positive for high yield, good for commodity exporters, bad for manufacturers, you need to make sure your selection is good, but in fixed income it's going to be a very rough ride. so you're looking 4% to 6% per year in fixed income, tell me what class could deliver that. >> i don't know one off the top of my head. i also like the 2:00 a.m. tweet by trump that could change everything. russia, turkey has been a big battlefield also china is still an unsecure place to invest, wouldn't you think? >> yeah. very good place for value, beta for return won't be with you as it was last year. so yo

if you are a use textile company, your summary facing cheap imports from mexico or china or somewhere else. you have two options. you just can't beat the competition so you go out of business. the second possibility is yet to get a lot more productive. you invest in technology, machinery. some of your employees lose their jobs. is that a job loss to technology or to trade? it's a bit of both. my third response is so the people affected it doesn't really matter. and it shouldn't matter. we shouldn't have a trade adjustment assistance program. we should have an adjustment assistance program to a people to get dislocated for an overwrite of reasons to land back on their feet. >> we will come back to what tradition was called trade adjustment assistance. it matters for us as a country carrying out the foreign-policy. the extent you have the causality or attribution to find mostly trade when you're arguing it is more technology. our public policy it's a consistent with your conclusion. >> i wouldn't argue with that and that's one of the reasons we are talking about this at the council on f

disastrous trade policies and i'll do my best to see the corporations reinvest in america, not in mexico or china. >> you think it's a good thing that he has got some correspondent boards a little nervous every morning to see who he is going to tweet against today? >> this is what i think, chuck. you can't have policy by tweet, company by company. we need new trade policies that says to correspondent america, sorry, start investing in this country, not just low-wage countries around the world. you need a policy. you can't do it tweet by tweet. i hope mr. trump is prepared to work with some of us to develop fair trade policies. >> tell us what you want to see on january 15th, the day of resistance. explain that. >> i think it is important that the democratic party begins to get itself outside of capitol hill and gets back into the communities and the street corners of america. and i think it is terribly important that we begin to work with communities all over this country, working people, the unions, senior citizen groups, physicians groups, and make it clear that the american people will not acc

budget is in this 20th century imagine is the forgotten story.you read and with mexico or china they given on votes, they all love the things that the illegal immigrants do today and that is the huge part of american immigration. >> but to be totally different from american society from the many types of their homeland.ll-kno even as one famous yorker said they are right this. -- rapists. [laughter] >> asked donald trump in but i said precisely those things about immigrants over the last 400 years so in that sense he is very much part of the mainstream. >> [inaudible] and i wanted run like hell from the italians and germans but for the working class white of the minorities but trump and berger up in an all white. and now it is not. we don't like cam -- tim but it the country really here is his message but to have the resistance and racist resistance. but before donald trump came along. >> there are too many to name but one example is the congressmen from texas to him the 1920's who settle lot of the same things that trump has proposed but he wanted to cut off all immigration.aid no m

press of the 1920s pretty much the same stories you read today about illegal immigrants from mexico or china are written except the protagonists are from italy or russia. they sneak in on boats and in compartments, they go through rivers and they do all the things that illegal immigrants do today but they were from greece or russia and we totally forgot that story and yet that's a huge part of american immigration. and it would've been for a lot of the people who lived here. >> you write,. [inaudible] they seem totally different to come from nations some of this is unfamiliar to most native american can workers. they they made no effort to learn english, and unlike previous generations they're seen many times in their homeland. many believe that they wipe out economic vitality. even as one well-known new yorker famously said quote, they're bringing drugs, drugs, their bringing crime, their rapists, who might this well-known new yorker be? and and why would he say such a thing? >> do you want me to answer that? >> yes. >> that is donald trump in 2015 a famous new yorker, so i think trump is p

the uncertainties whether it be mexico or china or russia are so great that induces some hesitancy amongst and ceos abroad. sinceenario we have had 2008, 2000 nine, no growth, no inflation, no pricing power focused on costs will continue in most economies. francine: a quick question which i need to ask you, you have been one of the most controversial ceos in terms of pop -- packages. will that be more controversial? guest: the issue is related to performance. if it is pay for performance, then fine. francine: thank you. we have some great interviews coming up including the u.k. chancellor of the exchequer, philip hammond. great levelheadedness coming through. in terms of his effusive miss in the markets. and we should do some more waiting and seeing. the bloomberg first word news. of the u.s.e chair federal reserve said the u.s. economy is close to the central banks objectives of full employment and stable prices. speaking overnight in san francisco, janet yellen said she is confident it will continue to improve and it makes sense to reduce the level of monetary policy support. >> as of la

or we won't. russia, china, japan, mexico. countries will respect us far more than they do under past administrations. >> sean: and you remember when hillary clinton presented russia with the reset button. take a look. >> i wanted to present you with a little gift with each represents what president obama and vice president biden and i have been saying. and that is, we want to reset our relationship. so we will do it together. >> thank you very much. >> you are very welcome. we worked hard to get the right russian word. did we do it right? >> you did it wrong. this means that come >> sean: you may remember when barack obama said, hey, tell vladimir -- watch this. >> after my election i have more questions. >> sean: i will tell vladimir. ari fleischer, editor-in-chief, fox news contributor, why are you laughing during my show? >> then he looks and says it is wrong. you got it wrong. >> sean: think about this. it's jv. it's embarrassing. trump was right that today. he is not going to do it better than they will. it's probably ri

1920 and pretty much the exact same stories you can read today about illegal immigrants from mexico or chinaare written except the protagonists are from italy or russia and they get on. boats, and they sneak in apartments. they take boats over the border. they sent the rivers, they do all the things illegal immigrants use today, but they were from greece or russia or italy and was totally forgotten that story and yet it is a huge part of american immigration and would've been the story for a lot of people who lived in this. neighborhood. >> you write the story of immigrants in this country yet not at all at its heart. contemporary immigrants in totally different. they come from nations and mike previous immigrants. sometimes familiar to both native new yorkers. they appear to make no effort to learn english..ic they seem to live holy cut from mainstream society and let previous generations pertaining many types that are homeless. their economic vitality. even one well-known new yorker in 2015, quote, they are bringing drugs. they are bringing crime. who might this well-known new yorker beef?

explosive comments whether it's calling nato obsolete or threatening the continuation of the one china policy. whether it's talking about building a wall with mexico or some of his praise for vladimir putin. other than those kind of more explosive comments, there is still a lot of ambiguity, and it is that sense of the unknown and anticipation that has many world leaders on edge. we know that president-elect trump has dispensed with the rule book and does things his own way. dispensing with long-held diplomatic norms, and that leaves people on the back foot not knowing exactly how to react. so many are listening and looking for more clues of what is to come, john and christine. >> and we are told clarissa that his theme will be all things, america first. >> i want to bring in our panel right now to discuss this big day joined by political columnist, and cnn political reporter jean scott, and he is a reporter for the washington examiner and new york post columnist. also tim naftali, former director of the presidential library. tim let's start with you. this day is one of the most astounding moments in american democracy, filled with poignant moment

if we can't come to an agreement say with mexico or with china, the first response is to build a walluild barriers of other people. we've also learned from history that's a short-term solution. you can build a wall and get short-term relief, but you can't rely on walls for long-term geopolitical solutions. >> wouldn't the israelis say, look, we, too, have walls and they've been effective at limiting terror? >> they've been effective at limits terror but they haven't solved the problem of the middle east. >> your response to the wall among other things is to say it's a short-term fix to a problem that, frankly, doesn't exist, at least exist the way that it had in the past and does nothing to bring us closer to the long-term solution that's necessary? >> basically correct, yes. it might stop people from killing each other in the short term, but it's not a step to a long-term solution, that's what i think. >> the president signed -- one other aspect of this, and it doesn't relate to mexico, per se, but the president signed an executive order today that will limit all refugees, frankly, n