kevin cirilli is with us at the white house. are now hearing from the new york times steve bannon was subpoenaed last week by robert mueller. tell us about the progress in this investigation. kevin: steve bannon, the president's former chief political strategist, on capitol hill earlier today to meet with members of the investigative committee. the new york times reporting the steve bannon has also been called to report to robert mueller. whether or not his testimony will change anything about the investigation is unknown. there's no question that the fallout between president trump and his onetime chief political strategist could have significant implications for this investigation. vonnie: any idea on timing? these in terms of timing, investigations have been somewhat moving along -- in addition to steve bannon, corey lewandowski has also met with congressional leaders, as has other members of the top campaign staff. in terms of the timeline, robert mueller's team has not signaled when they want to be wrapping up. most observe

jonathan allen, kevin cirilli. stick around. we do have much more to talk about. >>> coming up, mixed messages. president trump says he would absolutely talk to north korean leader kim jong-un just days after threatening nuclear war. how do you chase what you love with moderate to severe rheumatoid arthritis? do what i did. ask your doctor about humira. it's proven to help relieve pain and protect joints from further irreversible damage in many adults. humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. humira has been clinically studied for over 20 years. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, h

let's bring in melanie zanona and kevin cirilli., let's start with you, while hawaiians were frantically rushing for cover the president did not release a statement, nor a tweet, in fact he didn't even leave the golf course. why would he keep quiet during all of this? >> well, let me just start by saying this is, i think, a huge wake-up call for most of america. this is not something that most of us have had to think about for many decades, or at least not certainly in my lifetime. but, to have the administration, first of all, pin this mistake on to the state agency, which is correct, in hawaii, but there's a lot of questions about what the administration and staff members and cabinet members, were they trained to handle this sort of thing? why weren't there protocols put immediately into place to protect the president? the reports that we're getting is that there was a lot of confusion. a lot of people were caught off guard by this. and certainly, it's inexcusable that these sorts of exercises and training were conducted earlier,

kevin cirilli, from the white house.uick reminder, you can catch our interviews on the bloomberg with the function tv . that is tv . you can go back and look at earlier interviews. you can even play along, have a look at the charts that we have made up for you and lots more. do stay tuned. more bloomberg markets, balance of power is coming up next. this is bloomberg. ♪ david: it is 1:00 in washington, 2:00 in the morning and hong kong. i'm david westin. shery: i'm shery ahn. welcome to "bloomberg markets: balance of power." with a focus on the intersection of politics and the economy. david: cure the stories we are watching. dreamers and walls. president trump meets with lawmakers of both parties asking them to put country above party. budget due date. with a deadline looming for congress to come up with a budget, we will talk with dave brat of virginia. who is in charge? may prime minister theresa tries to reshuffle her, but some senior ministers refused to move. what this could mean for brexit. ♪ david: they ar

shery: thank you, kevin cirilli. vonnie: halfway into the u.s. trading day. abigail doolittle is with us. a turnaround for one index. for stocksvolatility in the u.s. and 2018, the nasdaq on pace for its worst day of the year. makes trading action. dow is higher. all three main drivers earlier with all-time highs -- major averages earlier with all-time highs. mastec down by more than .5%, its worst -- nasdaq down by more than .5%, its worst day of the year. looking at the nasdaq, some of the bullish action. lower.taking it it may have something to do with commerce secretary wilbur ross'comments in davos around trade that has spooked investors. we see a dip in the nasdaq. some biggest losers in the nasdaq, relative to a percentage performance, american airlines and texas instruments down more than 10% -- 7%. texas instruments beat estimates, a mixed quarter, sales outlook is dragging. apple and intel is lower. apple down 1% after someone said the company may have to lower its march outlook. that seems to be dragging down shares with intel down in somebody with

bureauome our washington chief, craig gordon and chief washington correspondent kevin cirilli with theatest. kevin, let me set with you. we heard the playback of president trump meeting with those legislators -- legislate -- legislators to what were the highlights? kevin: it was remarkable to see -- president trump me it meeting for one hour a bipartisan group of lawmakers as democrats making their case they want to see brock obama's daca program extended as part of the january 19 the deadline. lawmakers must past in order to avert a government shutdown. president trump drying that political line in the sand and saying he wants to see an increased level of security along the u.s. and mexico border, particularly when it comes to the so-called wall. however, although these comments note he didould appear to suggest he might be open to some type of deal with democrats in order to avert the government shutdown. shery: craig, the president saying the representative bob goodlatte of virginia will submit an immigration bill. what is the timeline in comp -- in congress look like? craig: the de

kevin cirilli, thank you, our chief washington correspondent. mr.e union tonight. we take great pride in having a great set of guests interlinking and speech into policy, also the trials and tribulations of the president and his washington. this is bloomberg. ♪ ♪ taylor: this is "bloomberg surveillance." let's get the bloomberg business flash. s.a.p. is moving to bolster its computer interests. a s.a.p. will get access to new sales analytics in its purchase. tohael dell ones -- wants bring all of his publicly traded companies under one roof. to payd allow vmware down some of its debt. five more years for jamie dimon. jpmorgan says he will serve that long before retiring. two executives have been promoted to join roles of president and chief operating officers. that is jordan smith and daniel pimco -- daniel pinto. tom: thanks so much. joining us now as we migrate within this news flow is christopher rupkey, linking great dynamics into the economy. and michael mckee, back from meetings.nd the nafta is the fed going to slow? this point, we want them t

. -- kevin cirilli is the designated survivor for bloomberg.t really care if mike mckee is the designated survivor . he can go or i can go. mike mckee, what did you hear on infrastructure? mike: if there were $1 trillion, but there is not. it would not even make a dent in the infrastructure problems. the one thing you can say about this speech is it had all most forward-looking items for the economy. tom: i like that idea, kevin cirilli, of hope. what was the hope you heard last night? kevin: well, i think it was a different type of president trump than we are used to hearing. a different tone. but i think it was light on policy specifics. republicans liked it and democrats did not. i spoke with policymakers last night as they were leaving the chamber and i think a lot of folks -- one of the surprising areas was on drug prices. a lot of that caught a lot of interest, in terms of what he would do to lower the cost of prescription drugs. but again, no specifics on how he would do that. tom: buried in the speech was a choice paragraph. it is picke

kevin cirilli is on capitol hill with the latest. n come up with all, speaker ryan has the votes -- is it even matter if the senate can shoot him down? it doesn't matter because lawmakers on capitol hill are scrambling to of a that government shutdown at the stroke of midnight tomorrow. the house of representatives is likely to vote on their short-term continuing resolution by 7 p.m. tonight. once he gets to the senate, mitch mcconnell is saying that there is nothing in that package to attract the amount of democrats needed in order to secure and avoid a government shutdown played most important that i've spoken to say what president trump wants in the short-term deal -- earlier today president trump tweeting out that he doesn't think a six-year extension of the children's health insurance program should be included in the short-term deal, i believe that it ought to be a longer-term deal. that said, this is a direct contrast to what senior administration officials have told the president they believe should be at the deal. vonnie: is

to kevin cirilli. to cripple. to kevin cirilli. ot requires me -- we are going to do that. they had $177 billion. we do not need that. it is more than 25% of annual operating costs. >> maldini said the move resigned to dip into $177 million in offset funds she says amounts to more than a fourth of the agency. >> maldini said the move president trump says he is not concerned about jeff -- what during hisn said interview for the russian investigation. said, i am not at all concerned. mr. trump also said he had not discussed the matter with jeff sessions. the new york times report that james comey was also questioned last year. ryan leading paul a weeklong congressional delegation to the middle east. his office says the trip will focus on regional stability. the campaign against islamic, terrorism, and iranian aggression. the speaker will be joined by several other republican lawmakers including the chairman of the house armed services committee. the u.s. and turkey have stepped up a war of words over turkey's offensive against syrian

kevin cirilli joins us with the latest. t's go back to the drawing board and get this done is a tweet just tweeted out by john cornyn. does it get done before friday? kevin: all indicators suggest that lawmakers will pass a short-term budget deal that would keep the government funded through february 16. several divisive issues, most notably immigration, have divided not just the republican caucus but also -- democrats want to keep in place obama era policies that protect so-called dreamers and keep this daca legislation intact. donald trump signaled he was potentially willing to bargain on that particular issue, but it would seem that democrats are united in their opposition about k caving on any of these immigration policies. vonnie: we heard from mitch mcconnell earlier saying congress must pass a short-term spending bill this week. long-term, he is not so sure. what would be the sticking points for a longer-term one? there will be defense spending and other sticky issues. kevin: republicans are also divided on the issue

joining us now is our chief washington correspondent, kevin cirilli. y idea what the president will turn two, first? -- turn to, first? there are some priorities, correct? kevin: i have spoken with several sources who tell me that the president wants to focus on infrastructure. that said, those deficit hawks that were quiet during the tax battle are not going to be quiet during infrastructure. several members of the house freedom caucus have said that they want more details about what infrastructure will mean. the president's chief of staff general kelly was scheduled to meet with top democrats to address some of their concerns thethe potential itinerary president will take up, this year. ,t is not just infrastructure it is also the issue of daca and immigration. the president and congress have to pass some kind of partial government funding bill by january 20 in order to avert a government shutdown and senate majority leader mitch mcconnell says they have more time on the issue of immigration and dreamers but democrats don't believe him. vonnie: some o

kevin cirilli is live from the washington bureau. es anyone think the government will shut down at midnight on friday? kevin: increasingly, it looks like they will have to short -- past some sort of short-term funding bill. president trump tweeting criticism of president dick 's alleged remarks regarding el salvador in african nations in which he called them an expletive nation. engaged in ae has twitter back and forth with senator dick durbin. divisive righto now that it could force lawmakers to pass a short-term, two extension of this government funding bill. vonnie: where will democrats in? kevin: not on daca. they feel not only do they have e, but theheir sid business community has been very much in line with the obama administration's daca policies. in addition to that, we did see some type of leeway for the president to step away on a host of issues regarding immigration, including the issue of chain immigration, slicing that often putting that on a separate issue. when you talk about this calendar year, the president will have

kevin cirilli joins us on the phone. where are you and what do you know?to west for the republican retreat. i got off the phone with congressman french hill who was on board the train. the train is located just outside of charlottesville, virginia. according to the congressman, he says there are no apparent injuries to any of the lawmakers. the two folks in a garbage truck that was on the track with the guard rails down, they appear to be injured. authorities are looking into it. they say terrorism does not appear to be behind it. the white house press secretary said moments ago that there do not appear to be any injuries to any of the republicans on board this train. this is less than 24 hours after the state of the union. local police are also very much looking into this matter. vonnie: how many of the gop lawmakers that were headed to localgreenbrier were on the trad are they continuing to greenbrier? kevin: within the last 10 minutes, according to the congressman and other colleagues , i have been in touch with lawmakers on board. it does not appear th

rishaad: that was kevin cirilli.ur special coverage of the state of the union address begins at 10:00 p.m. hong kong time and 9 p.m. on the eastern seaboard of the united states. we will have reaction and analysis straight after that. catch up with all of our interviews using the function go tv. you can also send us instant messages during our programming. this is for bloomberg subscribers only. check it out at tv . haidi: still ahead, a conglomerate conundrum for china. taking a look at the latest. this is bloomberg. ♪ ♪ this is bloomberg markets asia. i am haidi lun in cindy. -- in sydney. rishaad: and i am rishaad salamat. is head of equity research for asia. as it increases its purchases between three and five year bonds from 300 alien yen to 330 billion. kieran: small increase but the general message is they are running out of tends to buy. they are trying to hold on other parts of the curve. rishaad: so you think it is manipulation? kieran: yield curve control. rishaad: that the diplomatic way to put it whe

joining us now is bloomberg's chief washington correspondent, kevin cirilli. bloomberg's national political reporter sahil kapur on capitol hill. kevin, let me start with you. this press conference coming at a time when president trump is being embroiled in many difficult or challenging situations, domestically. give us a sense of how important this news conferences. kevin: not technically a news conference. president trump and his counterpart making public statements. traditional in the sense when the president took questions from reporters from both foreign governments. on the folk side, this comes at a time at which the president was praiseworthy of kazakhstan. noting there were -- there role this month and the symbolic role that plays for that emerge in country. the u.s. looking to strengthen its ties in the region. it comes at a tie -- time when diplomatic relations between north and south korea have been tense. there have been some signs of communications ahead of the olympics. russia as well and the owners -- energy section, you have a situation where th

by chiefined washington correspondent kevin cirilli. we have to start with the juiciest bit first, the president saying that steve bannon has changed his tune. does this blow over? kevin: unshaken, that was how a senior person who works with steve bannon told me last night, is what steve bannon is thinking right now, that he remains unshaken and will be operating as business as usual in his political apparatus. earlier this morning, donald tweeting out about the criticism steve bannon has received from his own website. who arewith folks frequently with this website who say the president is furious with the comments that steve bannon has made, on the record apparently, to michael waltrip. the president says he does not talk to bannon. what does that mean from a policy standpoint? steve bannon is clearly on the outs and has perhaps nationalistic economic policy, is no longer someone the president is soliciting advice from. shery: this meeting was about immigration reform and the gop senators were there to talk about it. where are we on tho

kevin cirilli joins us now from capitol hill with a republican lawmaker. vin: we are here with jeb hensarling. headlines crossing the terminal now. heidi heitkamp suggesting that this vote potentially could be there are conversations back-and-forth between republicans and democrats in the senate on immigration. i put this question to you. how long is this thing going to go on? rep. hensarling: you have to ask senator schumer. shutdown and only senator schumer knows when it will end. why do i say that, kevin? a majority of the house voted to keep the government open. a majority of the senate voted to keep the government open, but unfortunately it takes a super majority in the senate. democrats chose this shut down the government over an issue that has nothing to do with spending. this is a spending bill. down the chose to shut government over an issue that does not have a january deadline , does not have a february deadline, has a march deadline. meanwhile friday at midnight come our troops were told, by the way, report for duty, but senator schumer took you

let's get to kevin cirilli. we know from the headlines anything that we weren't expecting out of this meeting yet? >> president trump according to the new york times will be traveling to the world economic forum in davos. his administration largely skipped out on last year's event. president trump on the campaign trail was very much against these types of global economic gatherings. reversal from his previous position to avoid them. it also is notable given that you have someone like steve bannon's clout with republican certain's greatly diminished. someone who had really advocated against attending these types of global gatherings. that we areift watching and following here at the white house. vonnie: anything about the meeting that we weren't looking for? of thecrats coming out meeting suggesting they are still very much in favor of extending the obama administration stock a proposal -- daca proposal. in order to look that with the january 19 deadline that lawmakers on capitol hill must pass. to avert that gov

david: we want to welcome now kevin cirilli and marty schenker could cap and ask the unfair question what is he talking about? kevin: it is kind of a surprise. i thought it was a great interview earlier today by our colleagues because i think as this gets implemented, the republicans, particular those in states that are impacted by the state local tax deduction issue, states like new jersey and new york, there are republicans and there and have a lot of concerns about this. privately to the sources of talked to on capitol hill leading up to the tax vote, this was very tense amongst a lot of these republicans who were very much against it. be a is pointing to economic indicators and confidence from the jobs report as well as the stock market, but when this ultimately takes impact next year for many americans, that could potentially be a time when they want to have some peace to tweaks to it. went to that tweaks to it? en houseme wenh speaker paul ryan gets his way. shery: if they are checked again the tax system, they're just going to increase the deficit. marty: that could be one con

we are joined now by kevin cirilli. he is here with me in new york. kevin: so great to be here. love new york. vonnie: tell us about the tone of the president's speech tomorrow night. he does, how will his bipartisan solutions to the rest of the term appeal to that based? kevin: i was talking to sources over the weekend and i'm hearing we are going to get a president trump much more in line with what we saw and heard in davos. this will be him sticking to the teleprompter and him trying to have a message of unity. that is what they are pushing out from the white house at least. on the issues of infrastructure for example, it will be interesting to see if any democrats are going to get on board with that. ,peaking of democrats congressman joe kennedy from massachusetts is going to beginning the response to the democrats after the president's speech. look for him to use this as an ability to kind of capitalize on this new rising star within the democratic party. mark: what areas can democrats and republicans worked together? you mentioned infrastructure. what is actually possible?

chief washington correspondent kevin cirilli is at the white house with the latest. it too optimistic to expect any sort of deal on immigration and spending? kevin: it is too soon to tell. i have spoken with sources. wellare -- they're very might be the same drama we saw unfold several weeks ago before that holidayk recess. president trump and vice president mike pence are having a working lunch at the white house where they are likely going to address some of their top legislative priority items, including keeping the government open and funding -- funded. their to do list is infrastructure. for could pose problems republicans as several deficit hawks have risen concerns about infrastructure. particularly when it comes to the case of government spending. most to lose, republicans or democrats if they shut down the government? is thathat we have seen anytime you have a government shutdown, it is never good for incumbents. that would suggest right now, the majority lot -- party would suggest they are heading into midterms with that partial government shutdown. you tal

kevin cirilli is here in new york. great to have you in the studio. in: it's nice to meet you guys. talk about--shery: the state of the union. president trump had a successful meeting in davos. kevin: i was talking with , alles over the weekend indicators are that we are going to see the president that we saw in davos tomorrow night during his technical first to the union address. what i'm interested in is to see on infrastructure if there's going to be any democrats applauding. based upon the reporting of done, i can tell you a lot of democrats are skeptical of how the president wants to pay for the upper structure plan by lowering -- luring in private investment, but there are some more centrist democrats who could be on board with that. those interest democrats hold the keys to whether or not this can be a mission accomplished. vonnie: we know a lot about the of her structure plan unless it's changed radically in the last few days. we should know what democrats think about it already. kevin: i think in terms of the divide it, it's going to be intere

i'm kevin cirilli in washington. shery: i'm in new york. check of the major averages. a record high for most markets. russell 2000 also at a record high. we are seeing energy materials gains. financials also feeling the downward pressure. the s&p 500 up half a percent. the nasdaq is gaining 0.6%. with get to the headlines mark crumpton. mark: russian president vladimir putin says north korean leader "won thisl and haun has match in acquiring nuclear weapons." he called kim an educated and mature politician. he says the north korean political leader developed a nuclear warhead capable of hitting any target. angela merkel's second attempt to form a government is up against a deadline today. it has been months since her party won an inconclusive vote. the chancellor wants to avoid new elections and begin her fourth term. more than 300 people arrested and tear gas fired as protesters hurled rocks during continued nationwide protests over rising prices on many items including food, and medication. the tunisian government have accused political o

kevin cirilli, thank you. sign up for the balance of power bloomberg.com.on global politics in your inbox every day. sharminp next, mossavar-rahmani will tell us why the firm's remaining overweight on u.s. assets. david: you can catch all of our interviews on bloomberg with the function tv . go to your terminal and put on tv . live from new york, this is bloomberg. ♪ scarlet: i'm scarlet fu. and i'm julie hyman in for julia chatterton. welcome to bloomberg markets. >> that's why the stock market is reacting the way it is. think you all very much. i didn't but i am not at all concerned. thank you all very much. no. he didn't at all. he did not even a little bit. he's going to do a good job. we are looking at a lot of things. let's see how it all looks out. thank you all very much. there will be a trade war by the way. stockwill only be increases for the companies that are in this country and that's what happened today if you look at solar and the washing machine compans.

joining us is kevin cirilli on capitol hill with the latest. close are we to a potential shutdown? kevin: just over 12 hours until the government will partially shutdown. earlier today at the white house, president trump's director of legislative affairs trying to say that this is the democrats' fault, trying to label it be schumer shutdown. i caught up with steny hoyer about who he thinks deserves blame. take a look at what he told me. >> i think he is wrong. democrats voted 183 -- all of us voted to give a 90 plus day extension. we are now 136 days, going to do another hundred 30 to 164 days. we are unable to get agreement, when we asked for what paul ryan has agreed to over the last four years. nothing more or less. kevin: the back-and-forth between republicans and democrats continuing to escalate. the bottom line is i've spoken with several aides all morning, who are not sure these negotiations are moving anywhere, particularly on immigration. might we get any votes? what would be voted upon? kevin: the potential for eight miniature short-te

let's get kevin cirilli on capitol hill. we heard from chuck schumer, talking about a real pathway for dr. bill in this -- for the daca bill in the senate. are they just taking the offer given by the gop? kevin: it looks like they are. the pressure mounting on chuck schumer to get to some type of deal as they inch closer toward the 2018 midterm election. you heard it from the senate minority leader on the floor speech, start the clock, 17 days until the daca deadline and they are in all intents and purposes digging in on that. the question comes for the republican party, how divisive isn't going to get. -- is it going to get? with a listen to stephen miller? someone closely aligned with steve bannon. or, will they listen to more moderates in the room on the daca?of with a listen to the business community which has made its case on the issue of daca, impacting those 800,000 americans. the so-called dreamers. you are starting to hear some cracks and frustration the republicans have with negotiators from the administration. mos

with that is our chief greater good correspondent in washington, kevin cirilli.good this morning. i want to go into the white house. how are the generals, general mattis, general kelly -- how are they going to do the greater good this morning given the tumu lt? byin: i think the tumult led michael wolff's book, he will have comments later this morning. a lot of people are making comparisons to -- of steve bannon to stick maurice. -- dick morris. general kelly has tried to steady the ship in terms of the information that gets to the president in terms of foreign policy. two substantial policy developments within the last week is that the united states starting their trade negotiation talks with south korea at the same time, north korea and south korea have opened a back channel. hugei get the idea it's a january for washington and the nation and we are all distracted by not the silliness, but the fire and fury of the moment. how does mr. mueller fit into this? money laundering seems to be the phrase of the morning. do you as an insider in the halls of congress, th

thanks kevin cirilli, our chief washington correspondent. find all of our interviews on the bloomberg with the function tv . you can also find charts and if you missed it, not to worry its all here in front of you at the touch of a button. this is bloomberg. ♪ ♪ julie: -- scarlet: is time for the bloomberg business flash. walmart is cutting up to 500 itsorate jobs at headquarters this week. as part of the retail latest effort to streamline amid competition from amazon. walmart shuttered more than 60 sam's club warehouses earlier this month. american adding ceo to its board. airbnb has struggled with accusations that it is unwelcoming to african-american travelers. whenew year has seen hundred $64 billion of merger deals, the most since 2000. jpmorgan and deutsche bank expect the trend to continue as companies use chip funding for acquisition and to sell more shares to the public. they also expect ipo's to increase in 2018. and that is your business flash update. julie: it is time now for "options insight." today am joined by the chief op

we haven' kevin cirilli on it. richard edelman will join us. him on radio tomorrow as well. but what a shift in national perspective on politics. francine: let's go to the national perspective on brexit. the majority of british lawmakers believe remaining in the eu single market is compatible with honoring the results. let's get back with pimco's managing director. what does this mean for gilts and pound? ll, we have known for a while that the members of parliament have a pro-european stance. so, we know that./ they as members of parliament are there to deliver the brexit. we think if you look at where price,. asset markets you got the 10 year at 1.35, the same place it has been a step you have the treasury at 265. we think there is still a brexit premium priced into u.k. rates. that manifests itself through a willthat interest rates stay lower here than would have been the case otherwise. we are back in two the u.k. rates market through europe. francine: thank you, mike. we will be talking the future of europe tomorrow from davos. that is at 7

julia: kevin cirilli, moving on. combine all of this. what does all of this political machinations in d.c. and the agenda of the tax overhaul mean for the markets? , you had mentioned the market would be at its top the day the tax bill was signed and so what we're going to see this year is a tradable top u.s. equities. a couple things happened to our thesis. the tax bill came sooner and it was a little bigger. that could carry us through our original target towards maybe 3000 if things get out of control. we got to keep in mind that if we get a move to 3000 that's not going to be the same quality that we had this year. people are misconstruing that. people seem to be more optimistic and think it is a lower risk market. it's actually a higher risk market is the quality of the earnings is going down, not up. earnings are going up because taxes are being cut. my guess is that costs are going to be going up as well. your overheating and economy that's already running at full employment. energy costs are going up. that means operating margins

kevin cirilli, stay with us. we have much more to talk about this morning. >>> and why president trump is fighting to keep this a secret. that's up next. asked how they like their eggs, we're pretty sure no one's ever said microwaved. you deserve a breakfast made with respect. try the new bacon, egg, and cheese on brioche. panera. food as it should be. not in this house. 'cause that's no average family. that's your family. which is why you didn't grab just any cheese. you picked up kraft mozzarella with a touch of philadelphia for lasanyeah! kraft. family greatly. >>> new developments in the russia investigation as president trump is calling for a highly classified memo to be released. the top secret document allegedly accuses the early reference made into the mueller investigation. those who saw the memo had to say this about it. >> what i read today in that classified briefing room is that it is as bad as i thought it was. >> you are describing the very elements of a palace coup. and after jim and mark meadows

vonnie: kevin cirilli will be on capitol hill, tonight.sure to tune in for that special coverage of president's first state of the union address. that begins at 9:00 eastern. still ahead, tensions between the u.s. and russia heating up again as the trump administration publishes a sweeping list of kremlin elites. more on the story, next. this is bloomberg. ♪ >> president donald trump is set to give his first state of the union address on tuesday. white house officials say the president will dial back his andature combative posture focus on infrastructure and areas where democrats and republicans can work together. he's one of the least popular modern presidents to ever deliver his first state of the union speech. it is a nod to the legislative future he faces after passing the $1.5 trillion tax bill projected to balloon the federal deficit. then you just 50 votes to pass the legislation. trump plans to frame his infrastructure plan that he will look to find common ground on issues like the opiate epidemic. others invited by the white house

kevin cirilli is on capitol hill with the latest. could we expect a breakthrough?hat is what both sides are hoping for. upperp democrat of the chamber is at the white house, meeting with president trump. get to ato be able to deal with republicans. the follow is continuing this morning from republicans and democrats as the midnight deadline looms and there is a shut down on the table. the trump administration is calling this is the schumer-shutdown. democrats are pushing back, ype of daca some t deal be included. lawmakers of both parties suggested this will come down to the wire. the idea of having a short-term deal that would keep the government open for a couple more days might not be what the administration is hoping for, particularly with the president's travel plans to davos. saying,he democrats are we have to have this in this continuing resolution. vin: that has been where the battle lines are. some are suggesting the issue of the children's health insurance there could be some kind of like in additional funding for health insurance policies. beltway, the n

kevin cirilli is not he's at the benjamin bar at the trump hotel.th us. let me start with the moving chairs and the changing of the guard at the white house. when are we going to begin to see bodies out and bodies in? kevin: i put this question right before the christmas break to a senior source that works frequently with the right house -- white house that says essentially on issue of foreign policy with secretary of state rex tillerson, the timing of his exit is likely going to do with a lot of other developments that we are seeing in the news, especially with the developers of iran and north korea. with theoves forward winter games expected to start next couple weeks as well, really the geopolitical rule is impacting these jo departures. tom: always predictable is jared bernstein. here in "the washington post," he said if wages do accelerate, trickle down theory's will go nuts, but they will need to show the game's link to faster productivity growth, which trickles down to wages. the also be to explain what the budget deficit is going up because

kevin cirilli here as he counts the hours until friday. is lots of back and forth, and at the last moment, they will do a continuing resolution. is that the way this will play out? kevin: that is absolutely the way it will play out. last week when we were talking about the president's reported controversial comments, the say the least, about countries in africa as well as el salvador and others, there have been new development. trump tweeting out criticism against senator dick durbin, essentially accusing him of lying -- and there he is, dick durbin, sitting to the right of the president. saying, essentially, he was lying about these comments and that this type of goodwill has been daca, the immigration issue, into a tailspin ahead of friday's deadline. tom: there is a great political polarity. for our global audience, explain what shuts down if we shut down. the present goes to devils anyways, right? kevin: right. essentially, there is this thing about people being "deemed" essential. if you're not deemed essential as an employee of the g

joining us to talk about all of this is kevin cirilli. want to talk about steve. obviously, he knows the president really well. how precarious is his position? he may be outside the inner circle. will he be in six months? kevin: apology was not accepted. that's the message i heard. president issued an ultimatum to several top advisers, including chief policy adviser stephen miller, an ally of steve bannon. what does this matter if you are outside washington? steve bannon would ultimately was the nationalistic advocate, the loudest advocate in the circle surrounding the present. with his role now in question and the conservative movement, there is no leading force driving and pushing for a nationalistic economic agenda. in january.re only if you were a midterm candidate, or an incumbent, if you were courting steve bannon or key courting you, would you do that? is he horrible now? kevin: that's a great question. it was evidenced by several of the former people who sought his endorsement for midterm election races. they no longer wanted. just like the business world,

. >> i'm kevin cirilli in washington in for david westin.loomberg markets: balance of power." >> there are the top stories we're watching at this hour. nafta in limbo. candidate for the u.s. to pull out of the agreement. prepare for a showdown. apple may get a boost from the tax overhaul. will review the details. today.. house voted we will get senator rand paul's take on the bill later this hour. ♪ shery: good progress. aretors across the aisle insisting a deal could come as soon as this week, even as negotiations seem to be at a stalemate.president trump is not backing down from his long promised border

we welcome in kevin cirilli, our chief washington correspondent. washington still consumed with this book? kevin: a little bit. here, virtually no the book,lking about despite it's playing out over cable news and of course the president himself being behind the scenes, still trying to negotiate the january 19 government to -- deadline to avoid the shutdown. publicly, the government is still very engaged in this back-and-forth. steve bannon, the former chief strategist and architect really of the coalition of the ultraconservative wing of the conservative party now done. the apology he issued over the weekend was not accepted, according to reporting that my colleagues at bloomberg have done over the weekend. talking with several folks who say that the president has drawn a line in the sand. saying it is bannon or me, and a lot of folks choosing president trump. shery: we had the gop retreat at camp david over the weekend. did anything come out of it? kevin: actually, they watch "the greatest showman," which is the movie musical, so i do not know who

kevin cirilli is on capitol hill with the latest. i can't figure out what's going on. i hear they will have it, they're not going to have it. i'm not sure what the president of the united states thinks. kevin: every person i've spoken with doesn't know, either. the president's position seemingly at odds with his senior administration officials. he doesn't think the six-year extension of the children's health insurance program should be included. is at odds with what senior administration officials are saying. lots of confusion on capitol hill. listen to what mitch mcconnell told reporters yesterday. >> i'm looking for something that president trump supports. he's not yet indicated what measure he's willing to sign. the house ofaid, representatives expected to vote at 7:00 p.m. tonight. there's division amongst house republicans and not enough votes for democrats in the senate. david: you will have a pretty long night down there. this is different from taxes. they will have to get some people from across the aisle. kevin: they can't go it alone. that's why the house of

kevin cirilli joins us from capitol hill. does this escalate? n: i spoke to a source in the intelligence community is said the back-and-forth may work for president trump's base but they feel it is an appeal source. it does not do much in terms of the actual foreign-policy diplomacy. south korea and north korean officials talking for the first time in more than two years on that testing of a telephone communication in the border area between north korea and south korea. the winter olympics, scheduled to begin in under one month, in south korea, a lot of attention on that appeared how this global event impact the rumored of barges within the president's administration, people like rex tillerson, remains to be seen. vonnie: what will the president's reaction be to the north and the south talking? kevin: he wants to take credit for it. he has to move on in terms of the base rhetoric. the back-and-forth according to my source is how the north korea situation could actually impact the ongoing protest we are seeing in iran. there has been no talk of se

also joining us from washington, d.c., kevin cirilli. lieberman, thank you for your time.have this key deadline coming up on friday. what you think the administration should do? joe lieberman: i think the administration should respond to the continued bad behavior by iran by increasing sanctions. there's plenty of authority the president has under existing law to impose sanctions on the iranian government and the leaders of it. to speak up for human rights violations and support of terrorism throughout the middle east and beyond. --ope the sanctions rules sanctions will focus in on the ., the instrument of the ayatollah at the top to suppress and brutalize the people, which they have in the streets recently. this is a different situation we are coming to. the transition from president obama to president trump has toughened our position against iran, which i appreciate. there's no reflexive desire to defend the nuclear agreement. the people of iran have now risen up with tremendous courage and risk and protested this government, which they want out. they want freedom and op

kevin cirilli joins us now from the white house. rest of the gop going to think about that plan and to what extent does this facilitate getting some kind of spending bill in the short-term? >> i thought it was remarkable that president trump really doing something very unusual. that is inviting members of the more than 50 minutes inside the white house for a bipartisan meeting with lawmakers. we are still parsing through everything that might mean. president trump backing off and signaling that he could be willing to make a deal on the issue of immigration out of that january 19 deadline. he says perhaps he left some wiggle room on areas known as chain migration and the lottery visa program. that is good news for silicon valley. we should notice the business community's role in really advocate for the extent of daca. extending former president barack obama's trip -- policies into a long-term strategy. will republicans go for it, it's unclear right now. i have been texting with republican aides all day and what they say is that there

you erik.nke here for a preview what the president is likely to say is kevin cirilli, our chief washington correspondent. ae president gave a bit of preview, saying we will tell them we are open for business and you should invest here. what will he tell them? kevin rollins president is trying to put forward a strategy of "america first," coming at a time when the president signed executive orders on washing solar panels, raising tariffs by as much as 50%. that sparked criticism from aboutl business leaders that strategy. president trump also suggesting yesterday in those comments that the talks on a nafta negotiations are going "well." thatrhaps that is a signal things are turning a corner in the final stage of nafta talks. either way, the president, when he goes to davos and offers that america first roger -- strategy, we should note steven mnuchin making the comments about a weak dollar. also, the audience who will receive president trump has been very critical of this protectionist strategy that they think will hurt global businesses and globalization efforts. david: it strikes me that

chief washington correspondent kevin cirilli is at the white house with the latest.

to flush and a corresponding kevin cirilli is on capitol hill with the latest. vin, this meeting coming up in less than two hours. give us the just. what are we expecting today? what do they hope to achieve? to be a fly on the wall for this meeting. to discuss with lawmakers about that january 19 deadline. you will remember back in december, they pass that short-term continuing resolution. now they have to get together and have a longer version of that before january 19 in order to avert that partial government shutdown. what this is going to come down to is daca in the issue of immigration. democrats are saying they are united in their opposition. aidet spoke with a senior to a prominent democratic senator before coming on air. they told me these protest groups for the past several weeks have been focusing on democrats, including moderate democrats to keep them holding the line on the issue of daca. they want to force this issue come january 19. several republicans are not so enthusiastic about it. david: the president thought he had a deal with the democrats. h

put oil 1.68.r currentlye, at tom: whether it was the cacophony from 10 downing street in d.c., kevin cirillicapitol hill. is everybody just too distracted right now in washington? kevin: it is a really good question. here in washington, d.c., it is a most like there are two tracks. the public track of what goes on and what dominates the headlines and the political volatility so to speak day-to-day, with the investigation, the president's twitter account, the latest controversy with the "fire and fury" book. then there is the second track, increasingly behind-the-scenes. but in terms of day-to-day legislation on capitol hill, it is like they do not pay attention to the noise surrounding the trump administration. tom: it is january 9. i believe the 19th or so, it gets exciting. what happens in the next ciril li week? kevin: first, january 19th, passing the continuing resolution. the border wall, daca, the president's state of the union address. 31st is when his administration has to submit a budget outline for how much they want to have allocated to the various government agencies. look for th

kevin cirilli with us. he sent me a note on sunday, tom, you are unstable and a dummy. you know it. tom: i read 40% of michael wolff's book. it is brilliantly written, but isn't it just a compendium of what we already knew? is there something new in their -- there? kevin: there are a lot of mistakes. he did not know who the commerce secretary is. he thought wilbur ross was going to be the labor secretary. that is just wrong. the big takeaway from the book is steve bannon in the fallout from steve bannon. this is the architect of president trump's nationalistic policies. now he is gone. he is outside of the white house. conservativeh the movement is largely diminished. i was speaking with his close circle all weekend. even the folks i talked with inside the white house all say it is too little too late for steve bannon, and that apology you put out days after. oncepaul krugman in a book mixed up to fed th presidents. i once mixed up majorly in a book. monday, tuesday, wednesday to sell this tax bill to america? kevin: house of representatives get back today. the question

kevin cirilli with us. we are working on accommodation.ow if we could. you are going to love it, halfway up the mountain with of you south into italy. south intoiew italy. what was responsive washington to this announcement? kevin: a lot of folks were scratching their heads. i spoke with several aides and they were all saying -- there's no other way to put it, when president trump goes to davos, his agenda is so different on a host of issues such as environmental policy, bilateral trade agreement policy, than the rest of these global leaders. he remember last year when steve bannon -- what a difference a year makes because steve bannon really was the driving force that said no one from the trump administration -- incoming administration is going to send anybody and they only ended up sending anthony scaramucci and now you have a situation where steven mnuchin and other folks will be accompanying president trump later this month. tom: we should say for radio london and all of radio and digital worldwide that we were showing a picture of an

kevin cirilli joins us right now. let's cut to the chase.f a government shutdown? likely.t's increasingly the house of representatives passing a short-term deal to keep the government funded through february 16. the question becomes in the senate, none of that really matters because mitch mcconnell does not have enough democratic support to bring about any type of deal. yesterday, democrats, including chuck schumer really pounding the issue of republicans and the president on the issue of immigration throughout capitol hill. i am headed up there in a bit to see the fallout of this. the question becomes, are democrats willing to take the chance they will not get the blame should there be a shutdown? the last government shutdown in 2013 cost the government $20 billion. tom: within that and the fed would say, you can print that pox on both their houses. the democrats finally have power, don't they? are they truly unified? kevin: right now they are. the difference between the last government shutdown, which republicans were blamed for that, spec