jack lew on the 2018 washington.ondon, and from eurasia group, this is "bloomberg surveillance." ♪ taylor: this is "bloomberg surveillance" and i'm taylor riggs. south korea is forecasting a sales slow down this year. hyundai and kia motors says their performance will be hurt by stalling growth, rising protectionism and dangers posed by geopolitics. investigators try to figure out what caused the crash of a seaplane that causkilled the ceo of the bridgewater company. cousins was due to step down in april. in california, retail sales of marijuana for recreational use are now legal. sales were described as brisk in stores. los angeles and san francisco didn't authorized shops in time for them to get one of the first licenses and some cities have blocked marijuana sales altogether. that's your bloomberg business flash. francine: thank you, taylor. tom, you are away. this is weird. it's january, 2018. i'm used to you in the new york office, but this is special. let's go back to geoffrey yu and also bloomberg's mark gilbe

treasury secretary jack lew joins a conversation on global risk in 2018.ees significant risk in the gop's recent tax overhaul. shoe to drop next will be an attack on the most vulnerable in our society. shery: this is bloomberg. ♪ shery: you are watching "bloomberg best." former u.s. treasury secretary jack lew joined this week's "surveillance" special analyzing the tops report on risks of 2018. >> the thing that underlies so much of it is chaos. the unpredictability of key leaders, the lack of a north are with the united states stepping back in so many ways, and it is this kind of destructive policy without anything constructive to take its place, and that is true on issue after issue here in the united states. you look at markets over the last year, the call miss -- calmness of the markets almost suggest we should look past this uncertainty because what can we do about it, but the moment comes when something happens or something is a surprise that should not be a surprise, i worry about binary changes. tom: i want to go back to the beginning of your caree

former treasury secretary jack lew, why he says tax cuts will lead the nation in growth. away from the close of trading. let's get a check on the markets. we seem to be starting 2018 on the plus side. continuing that trend from 2000 team -- 2017, the outperformance, the nasdaq is evidence of that, outpacing the gains in averages. the s&p 500 could potentially close on a record but the others are not quite there. even though tech is performing well, if you look under the hood , some of the other groups on a percentage basis are doing better. you have technology here 1.2% but energy 1.6, consumer discretionary at amazon up 1.5 here and utilities are on the downside pulling back about 1%. less too the upside has do with crude oil and more to do with natural gas. are having in we the northeast. up 14% here, it did not too well in 2017 and was quite choppy. this coming as a welcome news, though the longer term outlook is not necessarily as rosy. clear division between energy, particularly natural gas producers on the upside, and some of the power producers on the downside. are

shery: and former treasury secretary jack lew does not think the new u.s. legislation will have a positive impact. >> leaving us broke so we cannot deal with these fundamental problems so we are further behind than making progress. shery: this is bloomberg. ♪ ♪ shery: welcome back to "bloomberg best." we're examining eurasia group's report on top global risks for 2018. high on the list is a global tech cold war. microsoft's president and chief legal officer brad smith described the international landscape for technology. brad: at one level, i.t., information technology, has become more global. the industry has become more global. this is another area where ian has been saying we are seeing the rise of china. we are seeing chinese tech leaders emerge as global tech leaders, but at the same time, we are seeing fragmentation in the sector. there no longer in some respects is quite as global and internet -- global an internet as there was a decade ago and five years from now, we may see more of that fragmentation -- there is no longer in some respects is quite

jack lew explains why the new tax legislation will hurt the economy. mr.ou look at the tax bill, what it does is almost the exact opposite of what the angry voters were calling for just a year ago. you have people worried about where they fit in the economy where technology and trade and globalization seemed to be changing all the rules they grew up with. we need training and education and infrastructure. we need to invest in the workforce of the future that gives people the competence. we have seen a tax cut that spends money we don't have to have concentrated benefits for global corporations and the top leaving us broke so we can deal with these fundamental problems. we are further behind in actually making progress. the next shoe to drop will be an attack on the most vulnerable in our society. you will see proposals to cut health insurance for poor people. to take basic food support away from poor people. to attack medicare and social security. one could not have made up a more cynical strategy. >> people are going to reject things that otherwise are go

were york city headquarters where they joined the group's leader for a detailed conversation with a jack lewrmer u.s. treasury secretary. he talks about u.s. leadership, the textiles are schlake -- the tax legislation, and the u.s. economy. that underlines so much of it is chaos. it is the unpredictability of key leaders. it is the lack of the north star with united states stepping back. it is this destructive policy without any constructive to take its place. that is true on issue after issue in the united states. look at markets over the last year. the calm this of markets suggests there has been a decision to look beyond this chaos is what can we do about it? when the moment comes when something happens that is as a prize that should not be, i worry about binary changes. >> i want to cut to the january chase. is inmpressed this month washington. i want to go back to the who isng of your career, the most basic of politicians from another time. what does your democratic party me -- need to do to provide leadership within this chaos? wish from mr. schumer, ms. policy, and others? jack: democ

jack lew joins us. ian bremmer i want to give you to jack lew.stion how would you frame the nation's , our risks this year as you speak to jack lew. >> we were talking about the chaos. about how much -- it takes a very long time to make things work. it takes a much shorter time to break them. jack is very worried about someone who was secretary of the treasury and spent so much time working hard and finding that washington is sclerotic and you can't make policy happen. if you now have a geopolitical actorshere the principal are trying to break. if the russians want to break the geopolitical order chinese want a new geopolitical order that goes towards them. how much does that chaos worried jack? -- worry jack? >> if you look at the risks theng the world and i read eurasian report. many ofit identifies the key risks. the thing that underlines so much of it is chaos. it's the unpredictability of key leaders. it's the lack of a many of the key risks. northstar. it's the kind of destructive policy without an

you talkeded to former treasury secretary jack lew. you called the segment unglued. very clever.said president trump has gotten lucky so far on the stock market. >> yes. >> why? i mean, it's definitely more than luck. >> no, it's more than luck. he acknowledged that. that there are company's stock prices going up because of tax reform. >> deregulation. >> but they haven't had to face any kind of crisis. there hasn't been a geopolitical crisis. his concerns are 2018 could bring you a crisis in north korea, it could bring you the trump administration doing something on nafta, or getting into a trade war with china or any number of other things that could knock this market off. >> the market is basically ignoring geopolitical risks at this point. >> which is remarkable. he went on at length about the fact a lot of this stuff is no longer priced in. there's a lot of risk out there, both geopolitically and economically, rising debt and deficits from these tax cuts that the market doesn't care about. that you're missing out if you're not fully invested right now. his concern is, look,

. >> that would be beautiful if growth phase for this, jack lew earlier thinks that the united statesoing broke which is a dramatic statement. what do you say back to him? >> i say that they had their chance to run the economy and when they ran it during the obama administration i think they added billions -- trillions upon trillions of dollars in debt. we have $20 trillion of debt. judge as on what we do, we are optimistic about what we can do. vonnie: gary cohn, the white house national economic director counsel. mark: time for the bloomberg business flash, the biggest stories in the news right now. emerging-market investor mark mobius is calling it quits, he will retire at the end of the month. he is 81 years old and has been with frank when doubled in for more than 30 -- frank when doubled in 430 years. -- for 30 years. his messi has something in -- he is the world's best soccer player five times. coming up, the battle of the charts, the commodity come back. this is bloomberg. ♪ ♪ time for our global battle of the charts of a look at the most telling charts of the day and what the

talk with jack lew earlier in the week.e think that she thinks the united states runs the risk of -- he thinks the united states runs the risk of going broke. what you think about that? >> a had their chance at running the economy during the obama administration. they added trillions and trillions of dollars of debt. on will have to judge us what we do. we are pretty optimistic about what we can do here. gary cohen,t was speaking to bloomberg about the state and local tax deduction. phil murphy said in the past hour that he would changes -- challenge the former trumpet minutes -- the trump administration's views. sense of the a proposed workarounds? i know these are not finalized yet, but what has been brought ands one way for california new jersey and new york residents to get some of their deductions preserved? eric: one of the things murphy has proposed is to allow people taxes as aeir state charitable deduction. you would make a charitable did option would normally over the state taxes, and -- deduction e in you would n

stuart: president obama's treasury secretary by jack lew says president trump has been lucky so far but no external shark is the rail of the economy. we've got a nice solid gain here for the economy. it's bad luck? >> the most meaningless statement. everybody's lucky all the time there is not some external shock. president obama was, people wanted it the fact president trump's policies are having a positive effect on the economy and the evidence is staring them in the face, which is why people are believing what they're saying. >> how about deregulation, tax reform. >> precisely. look at the dow at 25,427. before we close this out, i want you to tell me when you think we are going to get to 26,000 on the dow. >> if you listen to president trump with the streets, you will get there pretty quick. i think we'll get there in the next month. i don't know for sure. the great thing is going on. companies like amazon, a lot amazon, a lot more than my son. these companies are growing even though they're great big companies. the economy right now and is certainly worrying. that will continue for

this went to jack lew who was at the time the treasury secretary department of defense.rsenal. in part you could chock it up to the deep state and maybe it's the obama administration. finally i'm glad now if these reports are true that the department of justice is finally starting to look at this and, you know, peel it back. but it's taking years to get to that point. lisa: is it beyond uranium one. >> yeah. lisa: specifically very wernd did uranium one. >> uranium one is one of the factor. we list outer in this letter several of the companies and organizations and questioning the flow of money. at the surface, those who are not familiar with this we have a very finite resource in uranium. why would our government, why is it in the best interest of the united states to allow anybody, other than the united states access to that uranium? and now we find out that not only was it involved with canada but going to asia and to europe. griff: hang on though. let me ask you though because there are all these calls for sessions to step down to replace him. at the same time you ha