breakthrough on nafta, it would be ok, although ambassador lime heiser did say that he is hopeful. we also heard from secretary a a reportking about coming up next week. president trump saying he wants a lawsuit brought against opioid drug companies, calling on attorney general sessions to bring federal lawsuits against certain companies supplying opioids to hospitals. let's bring in my coanchor. touching on a wide range of issues, but very interesting that topic on drug prices. we have seen them sort here in the united states. that has become an important social issue. >> we will watch the whole health care group. let's look at the majors. the major market averages have been moving higher, s&p tracking for its best day in a couple of.

it's hard to understand why light heiser is in providing effective advice.of his team, i wouldn't say they are in disagreement. i would say that the three of them don't know enough to even have a meaningful opinion, so there's nothing to disagree among themselves on. haidi: thank you so much for that, matt gold, former deputy assistant to the u.s. trade rep. ,ome earnings out of australia continuing to come through. fairfax media, reporting a loss million, final dividends per share of 0.01 aussies per share. this creates greater pressure for that proposed takeover, that $4.2 billion takeover that was announced late last month. that's expected by most analysts to go through without much regulatory scrutiny. it has to go through a review process. you can get a roundup of that story, as well as everything you need to know to get your day going, on today's edition of "daybreak." this is also available on mobile and the bloomberg anywhere app, and you can customize your settings so you only get the news on assets you actually care about. this is bloomberg. ♪ rami

robert litan heiser earlier this week said we would send out a notification that we are entering a dealith mexico and canada is welcome to join. but if he says can do is coming, -- canada is coming, that would be another positive for the markets to take tuesday morning. caroline: not just canada and mexico, but it is china as well. that was a shot across the bow from trump this fixing that more tariffs are coming from that direction. how much are you expecting volatility to stand out in comparison with the lack of volatility? lananh: we have seen a brutal move in the markets this month and i don't think anyone think that will stop anytime soon with the trade tensions and the escalating tension between the u.s. and china. those tariffs that mike was talking about are imposed, then we get a ratcheting up of that. that brings a downdraft of emerging markets and pushes the dollar up. it adds additional stress. caroline: talking of additional stress, the toronto exchange hitting a monthly low at the moment. messing market reaction in some areas -- joe: even as the canadian dollar nots in the

there have been meetings between bob lite heiser and his counterparts in the e.u. and japan with they've identified priorities they want to work on together that relate to china. but all of that is hamstrung by the fact that we're not working more closely with our allies who share many of our views when it comes to china's industrial policies. so that's one step. another is that we could do more to use the global rules-based trading system. i think the administration has been candid that a number of the problems they've identified in china are not actually violations of wto rules. but a number of them are. and there are a number of areas where the united states could explore new challenges at the wto. one last point i'd like to make though on this though is that the united states, you know, one way to approach it is to negotiate new trade agreements in the asia-pacific that do not include china in which we can set high standards that are relevant to the industrial policy challenges that we're complaining about here. and that's what the tpp intended to do. so the tp

donald trump knows that. ,n terms of bob light heiser this is a man, the u.s. trade representative who has spent a long time preparing for a fight with china. this is the fight he wants to have i think. , ata is the opening rounds practice that. beyond china if you are in europe, sitting elsewhere in , to and japan, the message read the tea leaves, the sense that you would take away from this is donald trump is a man who was ready to deal and negotiate for us. we have seen a lot of his extreme positions, him actually not back down from per se but be willing to find a compromise on. that is encouraging to anyone who wants to talk trade with donald trump. lisa: thank you for joining us. coming up, u.s. stocks keep climbing. healthy rally or dangerous? joe: stocks are nearing overbought territory. strategists are unfazed and boosting year-end estimates. let's bring in look. you wrote about the market meltdown. up.elt we saw a series of charts that shows the exuberance in markets. what are we looking at? isolatee to try and where the fear is in markets. there has b

turkey to secure the evangelical pastors release broke down last month brunson was then transferred to heiser wrist over health concerns but he is still facing thirty five years in jail if guilty that's led to a heated this period between the u.s. and turkey. president ever to juan and the turkish government i have a message on behalf of the president of the united states of america release pastor andrew bronson now or be prepared to face the consequences approaching us with this kind of threatening language will not benefit anyone it is not suitable to use such language against a country like turkey which is still cooperating with nato to the highest level but we have learned a lot of problems with the and there are americans and turkey. made this branson issue will be tribal issue an american strike to oppress turkey you know to negotiate the other things this is a speck out of the hell out of the problems with the in america and turkey especially footlocker moment and all sorts of. fighters in syria why does the pastor bronson is really important for americans and we cannot understand that

the guy who's trade representative is robert light heiser. he is a well experienced expert on the rules. he has said thomas said, what so i do to change the agreement and outcome. nafta has a ban on by america, by america. so general electric and it's billion dollars of contracts had to have the stuff made in the u.s. after nafta, 10000 ge jobs went offshore. those procurement rules having nothing to do with trade have been a key demand of changing the rule so you can use by american. so the purchase of the government to put the tax dollars back in the jobs. closing a loophole in the role of origin so that now under nafta goods from china gets the nafta treatment. the rule now is 62.5 at the highest% rule. the u.s. has got mexico to agree to 75%. then what's interesting given politics right now sit appears mexico has appeared agree to another rule. a portion has to be made by workers making $16 per hour. the point is to restore some investment. if more of it made in north america some the still be made here. then, adding labor standards. the

asis worth pointing out ambassador like heiser has -- robert lighthizer has, we are closely engaged andn all of these issues for more than one year. we had been a good contact throughout the summer. hard, working extremely extremely intensely. we continue to be optimistic about the progress we can make this week. [speaking french] taylor: that was the canadian foreign minister speaking to the press and washington, d.c. recapping the headlines from her , she said they had another productive conversation with the treasury -- with the trade representative. she is speaking about the nafta talks the they are agreeing to meet at 5:00 p.m. to review these talks. she said it was a good conversation with robert lighthizer and they had been in contact throughout the summer and they continue to be optimistic throughout the talks. a lot more from the canadian trade, itnister on has been so interesting that canada the third-party the u.s. has shifted towards mexico. the new issues coming up with the auto industry and dairy. romaine: it is a big thing, we send the most of our imports into canada. our

trade representative robert light heiser holding hearings on the new trade obligations.ubled the length of these hearings into six days because overwhelming demand from companies that want to testify. he is a democratic strategist in a former consultant. he is the creator of the etf. group i have to tell you the list of products and consumer products that will be affected here. were talking everything from seafood that is coming from china. they are calling it cradle to coffin. everything. do you think that these american companies are can actually maybe get through to say that this needs to be fixed. this is an audience of one. the trade war has begun. we actually don't know. and the and kind of -- the uncertainty in the business. it's a impossible thing. there is a lot the has to be done in terms of protecting our intellectual property. but we need support of the rest of the world especially europe. starting a trade war on two fronts is as they say it's idiotic. a lot of business groups agree with that statement. he is a businessman. the u.s. chamber came out and said

heiser --dor light ambassador robert lighthizer and his team have been working very hard. our starting position was very far apart. i think at this point we know what each side needs and are working hard to find a way. my job is to find the deal that is working for canada. i am working hard to do that. has a robert lighthizer very good understanding of the canadian position. we joke sometimes that we could switch chairs, we know each other positions so well. we are working hard to find that win-win space. i think that, as we have said from the beginning, we know that canada and the united states are partners who are extremely important for each other. demilitarizergest border in the world. candidate is the largest market for the united states, larger than china, japan, view gigabyte and we do more than $2 billion worth of business every day. this is important for both sides and both sides understand that. our job as the canadians in the room is to work really hard to find those win-win outcomes. at the end of the day, we stand clearly for the national interests and for can

light heiser and united states and from president trump himself.hat is not going to stop the chinese from going ahead. so, the answer to your question is, you're going to have many manipulation in the downward direction, or the weakening direction, and for several months to about april we have it until the upward direction. i think this is a trend that is going to continue for more time. ramy: going back to donald trump's interview with us at the oval office, he said, of jerome powell. "i put a man in there who i like and respect." he vacillates between praise as confirmationmuch but saying, i am not liking what he is doing here. with regards to that, that surprises me because he is also saying are you are saying that you think that we might be seeing some global synchronized easing. you think the fed is going to do that? >> i'll answer you in two parts. when i wrote that for bloomberg, i was not saying jerome powell is going to buckle under to all the jaw boning president trump is doing. the issue is that the global economy is not going to allow t

taking one of the things that was mentioned by ambassador leite heiser that 40 to 45% of goods goingo be made by people who are making at least $60 an hour. there was no requirement on how much people need to be paid in mexico when they are these parts we like to call nafta a free-trade agreement but it is really a very complex situation. renegotiation from those rules seem more favorable. >> brett: very quickly. >> the interesting issue, the european commission are pretty optimistic on both sides, the white house is very optimistic. i think to molly's point, yes there is that. i wonder what will happen with the health insurance. on china, i think positively you see this pressure, intellectual property that is key. president trump looks good on this. >> brett: we will see what happens with canada, we will follow all of the developments plus the president-elect and mexico coming to into power. when we come back, and opportunity about some pretty unique artwork. ♪ will i'm all about my bed. this mattress is dangerously comfortable. when i get in, i literally say ahh. introducing the le

that's the preference that president trump is stated more on multiple occasions and so was robert heiser the u.s. trade representative but it doesn't actually make sense within the north american context and that's because we have industries such as the auto industry as the perfect example that really span the continent where you have parts and materials moving back and forth across the region as that final product is made and so to bilateral deals do not equal one trilateral deal in north america they would really be lesser of lesser value and it wouldn't be good for any of the three economies and so i think we're you know we're at a point where that's there's a bit really what we're seeing is a negotiating tactic by the united states to put pressure on the canadians to cede on certain issues and mexico in this case has been willing to play along because they get the certainty of at least having a bilateral deal even as they seek to try to continue the trilateral nafta now the architects of the original. about twenty five years ago had said that this is a deal that will have to be revis

right now, our minister is t with light heiser. that's a very hot issue. one of the closest allies of the united states, and u.s. tradeis a major partner. so, some trade on evenness, conflict has passed. background is dentistry. i became a dentist. mom.se i followed my my mom is a dentist. 1988, when i graduated and i got a license of a dentist, somehow, i talked my father. member andas a diet working on trade issues seriously. in 1988, what was the major trouble with japan? and my father told me. everything is ok. the economy is good. but the relationship with the united states -- trade conflict is a major trouble because japan partner of the trade the major ally of the united states and without that, japan cannot survive. that is serious. i told my father, let me go to the united states to study and he said yes. my career started. trade conflict is very familiar to me. , my father was minister for international trade. happened to be at csi after i joined. a very small world. economic theory -- rade is good for anybody, but in the real world, there are lo

there is a process of free trade agreement, also with thailand, ambassador light heiser mentioned opportunitiesto a couple problems with that, one, were not getting a whole lot of pickup on it. the philippines is eager to do it but so far it's just a matter of consultations, were not really moving forward very quickly at it. the other problem is capacity. they agreed on principle several months ago but it still hasn't been finished. if i'm in seoul, i'm waiting for the other decisions to be made before i signed that agreement. that could be another drain on time very soon. i just don't see much activity going on and i also agree that japan would be a good place to start, but we also have a problem and not the japanese don't want to do it. so, we have to come up with an attractive picture of trade in a broader economic relationship to best sell what pompeo was offering last week and so far were not offering that compelling vision. if you go back and look at the president's speech at aipac, that was not the way to do it. he basically said okay, you're all cheaters and liars and you're screwing us

about nafta, saying, if there is no breakthrough on nafta, it would be ok, although ambassador lime heiser did say that he is hopeful. we also heard from secretary a a reportking about coming up next week. president trump saying he wants a lawsuit brought against opioid drug companies, calling on attorney general sessions to bring federal lawsuits against certain companies supplying opioids to hospitals. let's bring in my coanchor. touching on a wide range of issues, but very interesting that topic on drug prices. we have seen them sort here in the united states. that has become an important social issue. >> we will watch the whole health care group. let's look at the majors. the major market averages have been moving higher, s&p tracking for its best day in a couple of. we will see if any -- couple of months. we will see if the rhetoric pulls down the sector. here is one reason the markets are moving higher. walmart hitting it out of the park. showing that it's e-commerce sales are tracking very strong 40% gains. walmart moving much higher. that is bolstering the overall market. shery: le

ifla: i think it is doable ambassador light heiser gives notice.n now and friday. if he gives notice, he could isnd that and tell them he doing a bilateral but he hopes to make a trilateral and get that in soon. i think it could be done, it should be done. david: there needs to be approval by congress even under fast-track. from what you understand in washington now, do you think congress is inclined to go along with the president on this? carla: congress should look at it on economic basis, if we tear up our agreement with our neighbors, we will take a hit, 11 million jobs, some say 14 million, hinge on this agreement. let's keep it going. we can improve it. they have drawn on some measures that we negotiated in the transpacific partnership to cover the modern issues like digital flows. let's not tear it up. david: take a step back with me strategically and look at what the president may be doing, whether he set out to do it on not which is, actually getting deals with mexico, maybe canada, maybe europe. then turning and facing china. at the same

i just heard blake berman and his conversations with light heiser and the sunset clause was a big sticking. this seems like it does include a sunset clause, it expires after six years when you renegotiate and he said mexico and canada were adamant again. i find it very surprising that the trade minister who issued the statement said that canada has to be part of this rework and it needs candidate signature. she's in europe right now but i can imagine canada is eager to get into the negotiations - looking at the dow 30 as they sprinted ahead and jump over 26000, all the trade sensitive issues, including caterpillar, boeing, by extension 3m, intel, they're all jumping on the belief that this removes uncertainty. we sought to get through the hurdles of canada and china and were not to get that far or get that bad. >> they know the u.s. is in the driver's seat. the 21 trillion-dollar economy is not going to lose a trade war. we are finally flexing our economic muscle and we are winning for these other countries have come to the table. we are 20 times larger than mexico and ten times larger tha

there are little things where they can move. , the question is ken lay heiser move off his view entirelyo have a different version of it, trudeau will pay a price politically if he looks to cave to trump entirely with a gun to his head to sign the deal as a take it or leave it kind of thing. should recognize that political dynamic. another one is we have an election going on here. given that's a big issue right now, there will be a lot of eyes on that. >> canada's banks are watching this closely. so far so good. how does it impact, give us a snapshot of how it might impact canada's banks. >> they are looking at it from a macro perspective. with the exception of some that have sizable operations in mexico. the threat hit the trump is giving is he will hit auto tariffs. canada quit nafta or got frozen out, let's say auto tariffs hit candidate that would be a wham! of bad things. that is where the banks are looking. this comes at a time when the bank of canada is deciding when to raise rates. overtook on a lot of debt the last seven or eight years when rates were low. >> finally this issue

light heiser, when asked about that, said they would notify congress of the deal with mexico and that canada is welcome to join, satisfying the statutory requirements. there will be many members of congress who disagree with that. vonnie: there was a major revelation from the call. is this seemed like a softening of the president's stance? >> it does. i'm learning about this from mike just now. seem like concessions by the united states. it was going to be a sunset and after five years it would have to be renewed almost from scratch. now to have this 10 years that would laughed after -- last after the initial six years? that's a big deal. and the investment mechanism is giving some ground to the mexican and canadian position as opposed to just saying no. wentel: the administration into this wanting to get rid of it altogether, it was one of their objections to the other treaties out there, like tpp. the u.s. trade representative and senior administration official said -- what's going to happen in terms of echo and canada, they have tpp. if they don't reach the deal, it won't hurt mexi

we are also told that robert lite heiser who is the top trade representative for the united states andust minutes ago walking here to the white house. so you can take from that that there is the possibility, if nothing else, that maybe mexican officials will be at this oval office event as well. this one we were expecting to happen as early as today, and we know now that is going to be the case, stuart, because over the weekend the top mexican official had said that this deal between the united states and mexico on a reworked nafta was hours away, and that top mexican official also says there is an outstanding issue still at ply here. -- play here. but clearly, they have gotten enough that they feel comfortable enough to have the president announce this announcement here at the oval office inside the white house just minutes from now. it's also important to note, stuart, that when we talk about the a reworked nafta deal, you got the united states, mexico and, of course, canada. canada has not been a part of this process, or at least not in the intimate level that the united states and

i think to the president's credit, to bob height heiser's credit, to jared kushner's credit, we did itthird side of canada? the president has threatened tariffs if they can't come to the table. is there any kind of timeline about how long the president is willing to wait to make a deal with canada? >> well, no, i don't think he put any timetables on it. i was with him most of yesterday and heard prime minister trudeau. look, i think we would like to make a good deal with canada, okay? we've been negotiating with them for quite some time unsuccessfully. i think he'd like to make a good deal. that good deal, by the way, has to include among other things inte reck are chul -- intellectual property rights. but also, katie, it's got to the include the dairy farm stuff, you know? there's a word that canada has trouble with. it's m-i-l-k. milk. anything to do with milk and dairy. they have this government-run, centrally-planned system. some tariffs, some tariffs run upwards of close to 300%. [laughter] they're going to have to fix that. and the president did say if we cannot satisfactorily ne

front and the administration is still trying to do that there have been meetings between bob light heiser and his counterparts in e.u. and japan and have identified priorities that retreat china. all of that is hamstrung by the fact we're not working more closely with our allies, who share many of our views when it comes to china's industrial policies. that's one step. another is that we could do more to use the global rules based trading system. the administration has been candida number of the problems they've identified in china are not actually violations of wto rules. but a number of them are. and there are a number of areas where the united states could explore new challenges at the wto. one last point i'd like to make on this, though, is that the united states -- one way to approach it is to negotiate new trade agreements in the asia-pacific that do not include china, in which we can set high standards that are relevant to the industrial policy challenges that we're complaining here here and that's what the tpp intended to do. the tpp had a chapter on state-owned enterprises and th

ambassador light heiser. [french] the ambassador [french] .. [french] ambassador light heiser when it comes to specific issues that we had been discussing in the progress that were making. as everyone knows is an extremely intense time in the negotiations and the ambassador and i had agreed that the best way to make progress is not being negotiating the public on specific issues. is it realistic to get a deal by friday. >> we have a good meeting yesterday. officials are engaged now. this big team that is going and. it's important to -underscore that for canada this is a negotiation we been doing for more than a year the issues are extremely familiar to us and we had been extremely involved in shaping the approaches and a lot of the issues it's very intense work. i continue to be encouraged by the good conversations were having in the progress that were making. >> when it comes to mexico with a good conversation with three lead officials. and that was very productive. we now need to have some good deep conversations with our u.s. partners and th