i am manus cranny. edwards.m anna manus: new year pushes equities to new highs.rrative to year high. the u.s. braces for winter storms. europe'sy of mifid, regulatory shakeup comes to force. will investors sit on their hands. warm welcome to "bloomberg daybreak: europe." it is 7:00 in london. u.k. retailer has determined its numbers. total brand sales up 1.5%. the estimate was for it to fall by a half percent. we have seen a tortured october. november and december were expected to show improvement, but nothing like this. 45 pounds isis, where we trade at the close of business last night. you are seeing total brand sales up by 1.5%. fourth quarter retail sales rise. the estimate was a decline by 8%. you are seeing a good set of numbers come through from next. the state of play on european markets, paris, france are open starting to trade. global synchronized growth story taking center stage. asian stocks build on their records. records and the united states. msci asia-pacific. china index up over 3%. the dax is trading nicely. nicely. some strength there. talking

manus: before the end of the year?: -- across the curve, i think the level of interest rates implied in those longer-term yields, for me, they are too low. whether they go this year, next year, or even later, on average, over the next five years, i think rates are going to be higher than what the market is pricing. manus: the euro, punching out a three year high in the euro, that ties back to the equity story. at what age does that become a problem? the cliche market discussion. the euro is strong. and there is this view that mario draghi and his message somehow has got, you know, pushed into the background. does the euro continue higher for you? where are we this morning? owndollar has got its idiosyncratic issues. 122.15. people are saying that were values are around 125, 130. does the euro trade higher for you? tristan: i think it is tough to call dollar euro. i think you are getting better value and some of the emerging-market currencies, to be honest, where you are getting the high real yield. being,or the time un

manus: what does that tell you?at tells us it will not -- we have a relatively large sample size. through december, we see relatively little reaction overall to the eu developments. confidence did not change through the month. it fell when the negotiations appeared to break down. it rose after they seem to make a breakthrough, and ended roughly where it started. manus: we have established that. sterling has not helped manufacturing. be part of your base case. -- that would be part of your base case. some people are going to say, new year, new date the pound should get a bit of a kicker. but if i look at that, it is not a breakout momentum for the pound, is it? the question for sterling markets is where do we go with transition? how important is that? economy,of the absolutely. i do not think sterling is given a big kick to the economy. we have seen manufacturing growth pick up. it is still not growing faster than in that euro area, even though we have the pound of falling a lot. u.k. has some coupling to global mome

manus: i'm manus cranny. these are your top stories. anna: new year, new highs. asia stocks heads for their best we since july. apples,pple says max, and ipads are affected by chip flaws. anna: what does this year old for the labor market? ♪ here in- anna: 6:00 london, this is daybreak europe. animal spirits seems to be present. that seems to be the story of 2018 so far. asity markets are doing well we said in our headlines, the dow hitting a new record, many indices hitting a new record. msci asia picking up where they left off. data fromd robust various locations, whether it's the u.s., china, or europe. all of that underpinning the strength we are seeing in these risk assets at the moment. we have the dow jones futures in their. -- in there. despite the snow perhaps. the jobs data it will be crucial, the two numbers we are watching, not a great start for the year for the dollar. prices put in the nymex to show they were pretty stable after what we have seen via record run of gains in commodity markets. around that $62 a barrel. animal spirit in these markets,

manus: the u.s.ve won't need to pick up the pace of its planned interest rate increases in response to the tax overhaul package. that's according to the white house chief economist. the cio of embark group is still with anna and i this morning. a couple of different things to be taken on board here. let's start the china data. to a certain extent, the building reserves the 11th straight month. i want to the mliv log and it could not have come at a better time. stronger reserves, stronger yuan , that money will flow back into u.s. treasuries. what do you take away from a stronger you want and a stronger fx reserves? we have the chart here in my terminal in terms of the building reserves. guest: they have been trying to stop the money from exiting. the exercise in not letting the money flat out without particular grandiose effort. it's a trait that works in reverse. the reality is they are creating credit level. last year, they made 3.4 truly dollars in new credit, $700 billion of growth. that's a five

manus: i am manus cranny. anna: north korea says it will send athletes and delegation to next month's winter games in south korea. manus: pals number two. -- howl's number two, president trump says to be close to a decision on his nominee as the code vice chair. state anda draghi's the american business will be looking to turn around the egg operation. turnaround the european operation. ♪ morning.ery good this is "daybreak: europe." let's talk about the asian equities session. another boy in story for stocks. japanese returning to the market. msci asia pacific up .3%. .t is not all positive samsung is one of the negatives over on the seoul market. their earnings report suffering a little bit because of the dollar weakness. that is weighing on the equity's story a little bit in south korea. our focus on south korea and north korea is around geopolitics. more details of that in the samsung story. let's talk about what is going on in fx markets. later our attention will return to fed speakers. today let's focus i

manus: i am manus cranny. trump's outburst. fresh accusations of racism after a comment about immigrants. after 18 hours of coalition talks with the social democrats, still no breakthroughs. ♪ anna: a very good morning. welcome to friday. 6:00 in london. 7:00 in paris or berlin. let's check where we are in the market action. we got the msci asia-pacific up. volatility in treasury markets allow a few more gains. we see the japanese market down. up around 0.4%. it does not mean we stop worrying about global concerns. it is on its weekly gains. we are keeping track of the strong gains yesterday. we got a change of guidance from the ecb raising questions when will you get changes in guidance. goes insideedwards baseball, but let's talk about central bank speak. agoe was a song many years called, "big in japan. " weekend of the january 5 that started back in october. the unsettling of the global trade story between north korea, south korea, and japan. you are seeing the bond at risk in japan dropped to a 10 month low. , theave fresh

manus: i'm manus credit. anna: -- manus cranny. anna: trade talks wrap up after president trump pushed for what he called a fair and reciprocal trade agreements. the uk primeus: minister fighting to end -- u.s. crude continues its march higher health by a weaker daughter and holding shells -- shares jumped. ♪ very good morning, everybody. warm welcome to daybreak europe. let's check out the markets. picking up where we left off. the mse i asia-pacific eating out further gains. we touched all-time highs in the united states in friday's session. we did have some action to talk about. , a yen is steadier now little bit weaker against the u.s. dollar. we have seen a move higher in the japanese currency. had the bank of japan's governor corona guided the market higher, when he was at demo's, apparently not. he was not changing his stance, changing his forecast. busy one.it will be a we have a dollar a little bit stronger, which makes a change after seven weeks of losses. it will be a busy week. yellen is in her last week of the fed. lot

manus: these are your top stories. anna: the inventor of milk chocolate sells its contact her unit.- confectory manus: rex tillerson says that the war with north korea is growing. he says that he will sell a stake in the developer. acquire the time to land. we already have one project. future anding at the the long-term. ♪ manus: welcome to "bloomberg daybreak: europe." 2.5e is a share buyback of from --.uros come in at 48%. ,bsolutely beating on margins share buyback for the shareholders. net sales, 2.2 billion. net salesst quarter up 2.2 billion. that is the guidance for this year. on the shares flow buyback. of course it is about demand. se they sink syncopated -- eing syncopated growth? cfo on the board of management. , 9 billion insml net sales. gross margin at 48%. we will have a conversation with the cfo at 7:00 a.m.. that it looks like a strong story. anna: we will catch up with the cfo onthe thinking -- the thinking and the buyback. 0.o the asian session, down 3% on the msci asia-pacific. a little bit of that

manus: we have a lot more to get to.hristophe donay, head of asset allocation and macro research, picted wealth management. he stays with us. if you are getting to go to can find us on your digital device. debate, could end after september. we will discuss what this means for markets. manus: later in the show will talk about oil trading at its highest close in three years. this is bloomberg. ♪ ♪ it is singapore, 2:19 in the afternoon. stocks are rising on msci asia-pacific. weakness has boosted global growth. what is in store? anna: in the u.k., the eu with job bill suggesting that rebels on the tory benches would not take this week as an opportunity to rebel. reports will be open after the holiday break. a little bit later on, the canadian foreign affairs minister and her u.s. counterpart wrecks tillerson tillersont -- rex will cohost -- let go to the business flash. based is tencent seeking to raise funds at about $17 billion evaluation for that video streaming business. according to people familiar with the matter, in

manus: i am manus cranny. these are your top stories. anna: rhetoric from mnuchin it's the dollar sent in the currency to its lowest level in three years. , donald trumptime says he would look to speak undergrowth about the russia probe. today the u.s. president arrives in davos. anna: the first policy meeting of the year with investors looking for comments on the stronger euro and the timing of policy changes. ♪ anna: good morning. this is "bloomberg daybreak: europe." we are live from the forum in davos. we have another great lineup for you. good morning, haslinda. haslinda: good morning. we have plenty of guests. president of institute of international finance. and jes staleyde and we will also bring you an exclusive interview with theresa may here from davos. we will speak brexit and our relations with the u.s. lots coming up throughout the day. manus: haslinda, great job. forward to those interviews. breaking news coming from nordea, we have a conversation later. they are the only systemically important bank in scandinavia. deriskin

manus: since that speech, the u.s.dent donald trump has enacted his america first agenda by withdrawing the u.s. from the transpacific partnership and the paris climate agreement and threatening to remain on nafta. what should the markets make of his historic role reversal? still with us. the scrambleagine around donald trump next week. davoscoming to challenge man and put the america first agenda on the table. what good comes from america first for markets in the world? -- for markets and the world. ? eric: a lot of people would welcome the devil's culture being shaken up aggressively. culture being shaken up aggressively. what is interesting about trump is the extent to which the reaction to him can just be as forceful an important to the reaction he intends to create. i think this is happening across western culture. a lot of the things that are happening now are a rejection. trump is such a blunt and aggressive statement of certain sets of beliefs that it galvanizes people in opposing it. , the eliteonsensus is out

manus: good morning to you.ook at the markets i'm going to show the veer what i got here, which is again rising and the yield rising -- the yen rising and the yield rising. rising bond yields are not at catastrophe. rising bond yields drives the banks. it may be just a precursor to a little bit of a fade in the qe move that might not necessarily equal disaster. ric: that's true. this is one of possibly the core questions that investors will have to answer in the next year or two. as you rightly say, usually the early stages of monetary tightening, which are associated with a bond yields inching up often, or great news for equities because essentially, , not are still very low really pulling back the economy at all and economy is rising. the traditional goldilocks scenario. is it different this time? that's a question. the reason it maybe different is pushed policies have bond yields down to such low valuations mayty be to some extent the payment almost very low yields. that may be the case, although i don't see

manus: thank you.ts processing chips could make the operating systems vulnerable to hacking. it confirmed the chips contained such of beecher but said other semiconductors are susceptible and disputed its products contain a bug. is this a serious security risk, how seriously with anyone -- should anyone with chips and their hardware be taking this? leave --one should be losing sleep. it is obscure and you have to have incredible knowledge of semiconductors, the way they work and the way they interface with the operating system to and toe vulnerability exploit it. it may have been around for as long as a decade. the fact that it is just now that it has come to live -- light indicates it is that obscure. that is not to say that there are not actors who have not -- who have known about it and exploited it. it is not the kind of exploit that would allow you to install malicious software on a computer which tends to be one of the largest vulnerabilities in computer systems. it could allow an actor, and outs

manus: good morning manus: from the city of london. this is "bloomberg daybreak: europe." anna: cashing out. its $38 billion tax bill stateside. manus: and the vanguard chairman warns investors as he sees a quiet period ahead. in asia.le less it's still overall lower than long-term historical averages. and china's growth spurts. investors await gdp from the world second-biggest economy. will it accelerate for the first time since 2010? ♪ anna: welcome to the program. this is "bloomberg daybreak: europe." this thursday morning here in london and let's start with the overnight session over in asia. we've been going through the day , we were in positive territory just a couple of hours ago and now were down about .4% it would waiting for a did lose your data out of china. the growth story for the fourth quarter. industrial production and retail sales due out as well. a strong session in the united states yesterday, the dow closing at 26,000 for the first time. visit smoke and mirrors or earnings and growth? one of the key questions the market will deal with as we head into to

manus: thank you very much.ef fx strategist, societe generale. in terms of sport, doesn't set the stage -- take a look at this -- the global risk aversion seems to be saying in the markets, that we have overestimated the risk. are you optimistic? i am optimistic about some of the economics. i do not think the geopolitical risk environment has changed very much in the sense that it makes headlines. i think, what does this tell me? it tells me that markets see more balance, global growth, smaller in balances -- smaller imblaalances. at the end of the day, that plus lower interest rates everywhere says the people, i am going to stop worrying about north korea. i'm going to get back to my business of buying equities, buying corporate bonds, and having a good time. wea: if we are doing that, are not worry much about whether we are going to get paid. asia,hows indexes in europe, and u.s. at their lowest since 2007. the markets are not overly concerned. these are all the same type of thing, low volatility, credit risk.

this is bloomberg. ♪ ♪ manus: good morning. i'm manus cranny. i met edwards.p stories. manus: trump's davos debut. foreignent lose leaders. but george soros says he's a danger to the world. anna: the dollar steadies after a roller coaster ride. u.s. officials sent conflicting messages. manus: several eu governments are said to be open on a transition brexit. beyond 2020. beyond 2020.iod ♪ manus: welcome to daybreak. it's 8:00 a.m. in dollars. we are going to set out the day for you. trump, the show man. he owned the room. you own davos. it was really interesting. he's really like a businessman. he was asking, why can we not grow more? it was interesting to see the president work. we will hear that keynote speaker, donald trump. a lot of people have stayed longer to be sure to listen to him. we will sit down with the eu commissioner. it will be interesting to see what he has to say. policy talk monetary with francis central-bank governor francois villeroy de galhau. what we heard from mario draghi yesterday in weakness in dollar. we will talk about what happens

i manus cranny. anna: and i am anna edwards. manus: making economy great again.in the state of the union address, president trump is expected to account his compliments and unveil action over trade. an informal discussion, jeremy corbyn wools nothing out on her to meeting the e.u. except his second referendum. sap agrees to buy a software company and thompson. reuters in talks to sell a major sake of its business to blackstone. we speak to the sap ceo. 7:00 a.m. in london. 8:00 a.m. in europe. tooe the u.s. faltered, so did the european markets. the s&p futures. london, paris, frankfurt, all dropped. tech job in asia. all of this to do with a report that nikkei -- a reduction in production of iphones. if that's true, tech could well be under pressure in the european trading station. state of the union today, the fed began 30 bank-day meeting -- the fed begins their two-day meeting. volatility rising across the markets. this is how it looks. volatility rising. the bond market volatility has climbed by 20% this year. the stock market volatility up by 25% this year.

manus: thank you.ssed $6 trillion in assets and continues to see its influence increase with passive investing. it has also seen benefits from the u.s. tax law. this get back to davos and francine with a special guest. good morning from davos, 2018 world economic forum. joining me now, philipp hildebrand, vice chairman, blackrock. optimism but are you worried about protection is in coming back in full force because of what president trump said? philipp: the global economy has never been more integrated. all engines are firing up globally. we have synchronized growth so that is good news. we do not have to worry about ending this too soon, but it is clear the biggest risk in our view is trade. fundamentally, are we questioning the kind of global trade order that has been marking this global economy for so long? that is the biggest risk out there at the moment. inncine: do people realize davos there is too much optimism? the criticism is that ceos talk to happy talk and in the world unravels. philipp: th

manus: this is "bloomberg daybreak: europe." race against time. the house passes a spending bill to avoid a government shutdown, but will senate democrats get the votes they need to block it? manus: some ball boy --zimbabwe's new president talks about his plans to revive the economy. be attractive for coupledom -- for capital to come to zimbabwe. agrees to pay. ♪ anna: good morning, everybody. "bloomberg -- it is

manus: >> they are quite risk on.n converting cash into products, in two different products, which is selling the for them. you can see how the markets are developing. currently we do not see kleins backtracking. have held them with the outlook we currently see. i think it is good to state investing. manus: i wish you well with 2018 and welcome to bloomberg. i hope you come again. that is it from the new ceo here at julius baer he has sent his message very clear to the market. he is not here to be the interim ceo. he has more work to do come more deeds to put on the table, more regional managers to hire. if you are going to be a contrarian and have a bullish view on the u.k., that is it from daybreak from anna, matt and myself in zurich. we will hand you back to guy johnson and the european market open. let's see what these markets make of the message we have had from the ceo here in zurich. i'll be back very shortly with a little more.

manus: the s&p 500 closed at another record high. the japanese yen strengthened and the dollar dropped for a third day. anna: it is day two of the world economic forum in davos. this hour we hear from the ubs chairman and the ceos of generali. ♪ anna: this is "bloomberg daybreak: europe" and we are of course live at the economic forum in davos. good morning. >> good morning from really cold davos. globalization is the theme that we heard yesterday. dublin down on globalization after president trump imposed tariffs. we heard from the likes of trudeau. modi saying that anti-globalization and isolationist policies will have to end. of course we have a great lineup. we will be sitting down with the panels -- and analysts --. we will speak exclusively to the of a standard chartered. manus: a little bit of breaking news from switzerland. he leaves and just over a week -- in just over a week. the guidance for this year will be low single-digit growth. a rebalancing act, of course. being hit by cheaper copycats trying to bring in those new,

manu, thanks very much. manu raju reporting for us.oining us in the situation room, congressman who is a democrat on the armed services committee. thank you for coming in. i will get to the russia probe in a few moments. let's discuss the president. he insists he is not a racist. what is your reaction? >> have to look at the past, way back the when he was running departments in new york city, he was charged with racial discrimination in housing programs. and when he opened up his campaign, first thing out of his mouth was to attack mexicans and then he attacked a gold star family and then a mexican judge and nfl football players, over and over always attacking minorities. you make your own judgment about this. my judgment is he is clearly a racist. >> some of your colleagues, democratic colleagues in the house want to introduce a resolution to formally sen sure the president for his most recent remarks. would you support that? >> absolutely. it is outrageous. my wife and i were peace corps volunteers in africa, and what he said about a

will there be job, ---manus: job cuts? are going to streamline our support functions and we will have only one legal, one one chief operating officer operation. so we will of course streamline some of this, but this is a story of growth. this is a story of how we can do better. achieve this us to going forward. manus: if i look at today's story, is this a reboot? >> i don't think there is any reboot. i would call it more and upgrade. -- an upgrade. manus: the investment bank came in below estimates. how did the investment banking? beenvestment bank has facing a very challenging year. and i do think that i am very happy. if you do look at the 16% on its of the -- allocated capital with about 20 billion -- the allocated capital between equity and total loss absorbing capital, it is a very good job. the market conditions are tough, in i'm very pleased to see our advisory businesses, we had great success. so we are able to compensate for this environment we are operating in. manus: in terms of bonuses and compensation, when we

i'm going to bring in manu raju for the latest on this. manu, tell us about how this all shook out?a mad scramble today after the president tweeted this morning, raising concerns about a bill that his administration supports. republican leaders behind the scenes started to make sure they had enough votes their caucus would not rebel in any way after that vote. the speaker himself spoke to president trump after that first tweet in which he criticized the bill and ryan who supports the underlying bill that just passed the house, seems to have convinced the president to send out an additional tweet saying that they should vote for this bill. as a result, one reason why the bill passed comfortably, was because of the second tweet. i caught up with the house majority leader kevin mccarthy right before the vote and he said -- i asked if he's concerned about the first tweet, did it create any problems, he said there were two tweets and that was helpful to resolve some of the concerns from the right. this came after an effort of pretty significant lobbying effort by the administration offic

manu raju is also following these late-breaking developments for us. manu, as you know, republicans have been expressing outrage about that reference in one exchange, two of those fbi officials had involving a so-called secret but now one important u.s. senator is admitting it may have all been a joke among those two fbi officers, two fbi agents. tell us about that? >> reporter: that's right, senator ron johnson, chairman of the homeland security and government affairs committee, he had been raising concerns about the secret society text, went on fox news earlier this week, suggested that's something he wanted to dig further into. yesterday when i talked to him, he talked about how he learned from a separate informant that there were meetings occurring offsite, perhaps something tied to this secret society. he said he didn't know what those meetings offsite were about. and after it was revealed publicly about what these exchanges were, he sort of changed his tune. well, i can read to you exactly what this text exchange said, according to what we have o

mark: that is bloomberg's manus cranny entering -- interviewing sergio ermotti. earlier.nie: time for a look at the biggest business stories in the news right now. twitter may now have to find a new chief operating officer. coo anthony noto is in talks to become the next chief executive of social financial. quarter fell on the 7% last week. how burton's fourth-quarter earnings have taken a $1.3 billion hit. part of that is unpaid bills from venezuela. the rest of the non-cash charge related to president trump's corporate tax overhaul. excluding those charges and other one-time items, halliburton posted its first fourth-quarter profit. sinc since .14. that is your latest bloomberg business flash. up more.hemont picking that is next. this is bloomberg. ♪ vonnie: visitors "bloomberg markets." -- this is "bloomberg markets." i am vonnie quinn in new york. mark: i am mark barton in london. m&a monday and in a show us strength, aig agreed to buy bermuda for $5.5 billion. celgene agreed to buy juno therapeutics. in the online retail space, richemont agreeing to buy yook. breakin

our manu raju just caught up with senator grassley. manu joins us now. what have you learned, manu? >> reporter: well, chuck grassley's spokesman yesterday put out a statement saying they were totally confounded by that decision, saying it could undercut the investigation going forward and it could actually deny their ability to bring forward other high-profile witnesses. namely, jared kushner, the president's son-in-law, who they have been trying to secure for an interview. so i just had a chance to ask senator grassley whether or not jared kushner will not come before this committee and will it prevent him from coming forward. this is what he said. >> these transcripts. would have been released eventually, anyway. but i think it does create some problems. for instance, when you're getting people to voluntarily come to you, it may make a lot of people a little more reserved about whether or not they want to cooperate. and i think particularly in regard to jared kushner, that it could maybe affect our moving forward with that. very high-profile person, as an example. but it will con

manus: i wonder about ams.are seeing calls for this stock, which is a swiss electronics technology solutions stock. it could be up 25% at the open. what is the story? reporter: yes, this is a technology maker. they have a lot of big clients, like apple and companies like that. they issued this trading update, which the bank has taken very positively today. we are hearing very good calls on that. , a stock could rise 25% massive move up. the market has reacted very well to that this morning. guy: that is interesting, in burgerf whatd dani just told us on the quant stocks. if you are looking at what is happening with gkn, how do you take some chips off the table question mark is a chips off the table story? has been well, melrose very aggressive during the situation and has been a very hostile move. a troubled company. and shareholders have really been looking forward to defending themselves. now the government is coming in. to me, it all depends on what they do now. i think this story has got a long way to go. i

there is this other story, manu. michael cohen, the president's corporate lawyer -- that's gary cohn. that's the wrong cohn. c-o-h-e-n, michael cohen is suing fusion gps, which is behind the dossier as well as buzz fe "buzzfeed" news for publishing the entire dossier a year ago. i've talked to some legal experts. this could be a risky move for michael cohen. >> reporter: no question. he presumably would have to sit for a deposition and his wife perhaps would also have to agree to do that. the standard for evidentiary standard in the discovery process is pretty low, jake. that means a whole range of documents could presumably be requested from both sides as they investigate this further. of course he would be the closest person to the president to fight this in in the legal system, fight the dossier in the legal system. we just don't know what would come out, and clearly that's got a lot of people interested about what may emerge from these lawsuits going forward, jake. >> all right. manu raju on capitol hill. thanks

democrats see this as an effort to obstruct the investigation. >> thank you, manu. >>> the department of health and human services is expected to adopt so-called conscience health care protections for civil rights to stand by workers refusing to provide abortions on moral or religious fwrounground. they want the announcement to coincide with the national march for life. president trump will address the gathering on video. he will be the first president to do so. hhs has not responded to cnn's request for comment on this expected rule. >>> the president heads to the pentagon today with a new u.s. nuclear strategy on the way and now he is accusing russia of helping north korea. we're live in moscow. >>> president trump is using his score on a recent cognitive test. part of his medical checkup to take a swipe at his oval office predecessors over north korea. he blamed obama and bush and clinton for the growing threat. >> he said, quote, i guess they realize they have to leave it to a president that scored the highest on tests. the white house physician said mr. donald trump scored 30 out

our senior congressional correspondent manu raju. manu, to you first, do you have information on what mcconnell and schumer discussed? >> they did try to come up with a deal to reopen the government by tomorrow morning. but i'm told that there is no deal yet. there is optimism that could be a deal. this comes after a bipartisan meeting of senators earlier today. that pathway being three-week deal to reopen the government as well as some commitment. people came to the country, illegal status expiring in march. how do deal with that and when to deal with that. democrats are pushing to get this resolved immediately. resolved before the next monday deadline would be enacted if that were to pass before february 8 to be precise. republican esz s republicans say that is too soon. we don't want to tie it to a must-pass government funding bill. there in lies a key sticking point. this is all what mcconnell and schumer discussed in their private meeting that occurred right after senate floor. we are told there will probably be more discussions

manu, what are you learning? >> reporter: well, wolf, tonight the house democrats and republicans on the house intelligence committee are running into a collision course of sorts as the two sides are preparing for an end of an investigation that could occur in the coming days and weeks. now the republicans say that they have investigated this matter fully. they've interviewed scores of witnesses and they they're prepared to write a report, even suggesting that there has been no collusion. saying they have not seen real serious evidence, virtually no evidence of any collusion between the russian officials and trump campaign. now democrats say there are a number of areas that have not been fully investigated. they say the republicans have rushed witnesses into the committee and they say they've been trying to issue subpoenas on a number of fronts, including to get final trorrecords from deutsche bank to see if there were any ties with the russians. this comes as tension is looming over devon nunez, the republican w

manu raju up on capitol hill. by the way, senator warner will be joining me live here in "the situation room" in just a little while. >>> joining us right now, democratic congressman eric swalwell of california. he's a key member of both the intelligence and judiciary committees. congressman, thanks for joining us. >> good evening, wolf. happy new year. >> happy new year to you as well. let's begin with the explosive revelations in this new book, including this quote from steve bannon regarding that 2016 trump tower meeting in new york between trump campaign officials and russians. i'll put it up on the screen. even if you thought that this was not treasonous or unpatriotic or bad, expletive, and i happen to think it's all of that, you should have called the fbi immediately. how stunning, congressman, is it to hear that kind of language from the president's former chief strategist? >> well, wolf, it hopefully is a wake-up call for republican leadership because right now you have to be asking yourself if you're a h

manu? >> reporter: yeah, this is certainly angered the president, the release of this transcript, which caught republicans by surprise. dianne feinstein joining with her democrats in releasing this transcript yesterday of glenn simpson, the cofounder of fusion gps, discussing his decision to hire that former british spy, chris footopher steele, that dit together that trump/russia dossier and his decision to brief the fbi of something that was very alarming, something that could potentially lead to blackmail of a presidential candidate, according to glenn simpson. the president just went after dianne feinstein on twitter saying, "the fact that sneaky dianne feinstein who has on a number of occasions stated that collusion between trump and russia has not been found would release testimony in such an underhanded and possibly illegal way totally without authorization is a disgrace. must have a tough primary." now, the earlier trump tweet that you read was that trump mentioned that republicans n

our senior congressional correspondent is manu raju and he joins me now.week for the house intel schedule. steve bannon scheduled to meet with them tomorrow. other members of the trump campaign expected throughout the week. what more can you tell us? >> that's right, steve bannon of course joined the trump campaign after the trump tower meeting in which donald trump jr., jared kushner, paul manafort, met with the russians in june 2016 after donald trump jr. was promised dirt on the clinton campaign. but as we now know, steve bannon had a lot of thoughts about that meeting. in michael wolff's book he's quoted as saying that meeting was treasonous, unpatriotic, even questioned the assertion of said that then-candidate trump - had no knowledge of that meeting. said there was a 0% chance that donald trump had no insight into exactly what happened. well, the members of the committee are going to ask, how come you've made such a bold assertion in this book? do you know about any of these contacts that occurred? did you know about that meeting after the fact? wha

our senior congressional correspondent manu raju has details. so, manu, what's the latest? >> well, the two senior republicans, anderson, are calling for the justice department to investigate whether or not christopher steele lied to the fbi about his contacts with the news media about this dossier that, of course, that he complied looking at these allegations of trump, russia connections as well as trump associates meeting with russians during the campaign season. now, what senator chuck grassley, the chairman of the senate judiciary committee, and zmer lindsey graham, who is also a senior member of that same committee, are saying is that there are some inconsistent statements that mr. steele made to the fbi and they want the justice department to look into whether or not there was any criminal wrongdoing by potentially lying to them. now, this is so serious, according to lindsey graham, that he believes there should be another special counsel named to investigate this matter fully. this is what lindsey graham says. he says, after reviewing how mr. steele conducted himself

manu, thank you very much. let's talk about all these breaking stories with senator richard blumenthal, a democrat on the judiciary and armed services committees. senator, thanks so much for joining us. >> thank you, wolf. >> i want to get to the russia developments in just a moment but i want to get to your expected vote. will you vote to shut the government down if there's no agreement that will allow the dreamers, the hundreds of thousands of dreamers to remain legally here in the united states? >> my hope, wolf, is that we can still reach common ground. there is a bipartisan compromise that is very encouraging. the effort to blame each other at this point i think is premature. i voted against the temporary "kick the can down the road" solution last time around because it failed to provide protection for the dreamers against mass deportation, which is against american values, and i will again. >> you're talking about this bipartisan agreement that dig durbin and lindsey graham put together. but the president

manus: let's talk about the fed.g to understand the reaction to the change of management we got. it is little more vague. is the: i think that very interesting aspect is that you are asking about the level of yields. what the curve determines versus what u.s. break even will tell you is the interesting story. u.s. breakevens are moving up. if you go back three months, they were in the 185-190 area. the of move that significantly in the wake of the passage of the tax reform bill. the curve is flattening broadly speaking. it has turned more mixed. he was curve has been flattening for quite a while. those two are sending a different message, and that one is sitting is saying and saying inflation rushers are going to build a get to a degree unhinged. the curve is telling you that the fed has got its game face on. but that is doing is hedging the end of the cycle. get --lant-in as they curves flatten at the get toward the end of the cycle. you heard steven major talking about flattening in the european curve. if that is t

manu?there's growing expectation among senate republicans that florida governor rick scott is going to challenge bill nelson in that state senate race, which would set up one of the marquise races in the country, one that would presumably determine the senate majority. if he were to run, it would be a recruiting coup for the president after having several challenges, setbacks in recent days, and particularly in north dakota, last week, when congressman ken cramer was seriously considering running against heidi heitkamp, a democrat. cramer had been urged by trump and vice president pence to run. he decided not to do that. scott, i'm told, is seriously considering it. he has had a number of conversations including with lamar alexander, marco rubio. rubio himself told me that scott will make a decision after the end of this legislative session, which will be in march. of course, we'll see what the political environment is then. perhaps he may not want to dig into his big, personal fortune to t

manus: i am manus cranny.ea says it will send athletes and delegation to next month's winter games in south korea. manus: pals number two. -- howl's number two, president trump says to be close to a decision on his nominee as the code vice chair. state anda draghi's the american business will be looking to turn around the egg operation.

manu raju, thank you very, very much. appreciate you being there for us. >>> some democrats now saying that they don't want to, quote, honor the president by attending the state of the union address. they say that the president is destructive and divisive, but is their action, not showing up, is that too divisive? i'll speak with the democratic congressman who plans on skipping the speech. when i received the diagnoses, i knew at that exact moment ... i'm beating this. my main focus was to find a team of doctors. it's not just picking a surgeon, it's picking the care team and feeling secure in where you are. visit cancercenter.com/breast i'm trying to manage my a1c, then i learn type 2 diabetes puts me at greater risk for heart attack or stroke. can one medicine help treat both blood sugar and cardiovascular risk? i asked my doctor. she told me about non-insulin victoza®. victoza® is not only proven to lower a1c and blood sugar, but for people with type 2 diabetes treating their cardiovascular disease, victoza® is also ap

manu rogue begins our coverage "outfront" tonight, and manu, the transcript of the testimony, 312 pages, pokes major holes in the gop talking points calling the dossier garbage. >> yeah, the co-founder of the firm, fusion gps, who hired christopher steele to investigate said they wanted steele to look into candidate trump's past, his business dealings, why he went to russia because there were questions they wanted to learn about exactly what happened and what mr. steele found, according to the transcript, was so alarming he had to inform the fbi. the 312-page transcript includes new revelations about the infamous opposition research dossier on donald trump and the russians. glen simpson, the co-founder of the opposition research firm fusion gps told the senate judiciary committee that a former british agent who compiled the dossier was so concerned about what he found that he decided to brief the fbi in the summer of 2016. the agent, christopher steele, worried about a security issue about whether a presidential candidate was being blackmailed. according to simpson's transcript. he also

christine and dave. >> manu, thank you. >> let's bring in jackie kucinich. great to have you, jackie. >> great to be here. >> republicans have a memo. democrats have a memo. do you have a memo? >> no memo. you know, this is fascinating what's going on in terms of the partisan rancor which is at a new level overnight. the russia investigation into the house, what can you say at this point? it is just in tatters in terms of what nunes has done here. it really is. this was a committee that never really or hadn't been touched bipartisanship. at this point, you have to wonder if they can get it together to get the investigation done in any way that anyone in the suppopublic accept. >> forget about bipartisanship with this house intel committee. we used to at least take time and patience with such sensitive information. why the rush to get this memo out there right now? >> a really good question. i'm guessing it has to do with the president. the president, this is something he wants out. he indicated it is something he is going to approve. he really wants this inv

our senior congressional correspondent manu raju.anu, to you first, do you have information on what mcconnell and schumer discussed? >> they did try to come up with a deal to reopen the government by tomorrow morning. but i'm told that there is no deal yet. there is optimism that could be a deal. this comes after a bipartisan meeting of senators earlier today. that pathway being three-week deal to reopen the government

manus, let's talk about the takeaways.'s talk about what is going on in terms of the details we need to focus on. which ones are important, which ones are not? in theone billion euros next three years. jamie dimon did at jpmorgan. i had a conversation last week where someone said jamie dimon owns 20%, but he did not spend a dime unless it was on technology. ermotti committed to a billion dollars over the next two years. asset management died. they had a target of one billion euros, 10% of gross targets. that was a bit lower. no blockbuster change in the target, but think of it this way. he is not slashing the targets which brings a little more substance. costs seem to be one thing they are focused on. there will be less than 75% of the business, but for me, the detail is a bit lower. return on equity, 15%. it is about investment in technology over the next couple of years. guy: absolutely as you say. certainly delivering on one of the key metrics. manus cranny, thank you very much. fascinating news. eye on what is happenin

and that release fell like a ton of bricks where you are up there, manu. >> yeah, it infuriated grassley, who said by doing this it would undermine the investigation going forward. according to the transcript from the co-owner of fusion gps, and he defended his decision to hire christopher steele to investigate trump's business background and according to mr. simpson, mr. steele was so alarmed about what he found out about contacts between russia and trump associates and all the like that he had to go to the fbi to inform the fbi about what he found back in the summer of 2016. according to this transcript, simpson says this. chris said he was very concerned about whether this represented a national security threat, and he said we were obligated to tell somebody in the government about this information. he thought from his perspective there was a security issue about whether a presidential candidate was being blackmailed. in addition to this, simpson also testified that somebody in the fbi had essentially believed what steele was saying because of an inside source, a trump campaign source

manu tried botox last year. now he gets injections every ten weeks. >> i saw a night and day difference. he's back in school. he's playing sports. he is playing with his brother. >> reporter: taking a shot at a new treatment so he can get back to being a kid again. dr. john torres, nbc news, orange, california. >>> coming up, the surprise move a major american city is making now that recreational pot is legal there. >>> and mystery solved. we finally know what was in the blue gift box sfx: muffled whistle text alert. i'm your phone, stuck down here between your seat and your console, playing a little hide-n-seek. cold... warmer... warmer... ah boiling. jackpot. and if you've got cut-rate car insurance, you could be picking up these charges yourself. so get allstate, where agents help keep you protected from mayhem... ...like me. mayhem is everywhere. are you in good hands? use pantene shampoo together with 3 minute miracle daily conditioner. their pro-v formula is like a multi-vitamin. making your hair 2x strong

manu raju, thank you very much. >>> joining me now, asha rangafa. let's talk about the latest reporting that seems to be inside this memo. republicans very upset for some reason, the deputy attorney general rod rosenstein extended the fisa warrants to surveil carter page, carter page obviously this foreign policy adviser to the trump campaign, somebody on the fbi's radar before the trump campaign because of his contacts with russia. help me understand what would be controversial about the deputy attorney general who, again, has oversight over this investigation, extending those warrants. >> well, john, this is exactly an example of how this memo is inaccurate and misleading. so deputy attorney general rosenstein doesn't have the authority to extend any kind of surveillance at all. the department of justice has to go into a fisa court and request an extension of any surveillance that is ongoing. now, the deputy attorney general might sign off on allowing the attorneys to go into court to ask for it, but the ultimate decision would be made by a judge.