michael mckee is with us as well.ur economics correspondent -- is there something we weren't anticipating or did we know this was coming? >> we knew it was coming and the rough details of what he is like about, $50 billion -- bloomberg reported last night. the ustr and the commerce department found about $30 billion worth of damage done from the ip transgressions of china. the president said --, and the got up to 50 billion. we are waiting to see exactly where those tariffs will fall. the investment park, there were questions if they will go forward with that or not -- the investment part. the u.s. can rule to the committee on foreign investment, that is run by the treasury secretary. they can rule on efforts by outside companies from the outside of the u.s. borders to take over u.s. companies -- it doesn't work the other way yet. there is legislation in congress that would allow them to do that , it is probably going to pass but it hasn't gotten there yet. the question people are asking about this is what extent are

the michael mckee. this is bloomberg best.our weekly review of bloomberg television around the world. on sunday, italy held a general election. the results suggest that populism in europe may still be a powerful force. ♪ >> antiestablishment five-star movement seems to be the big winner of the italian election. at current counts, it is expected to win around a third of the vote, but not enough to rule on its own. a right-wing alliance may when slightly more seats, but again it's not clear if they can form a government. the biggest loser, outgoing prime minister in the centerleft democratic party. what exactly happened here? >> the main takeaway of course are the polls before the d were not exactly right. what we understand now is that antiestablishment and anti-people having been in power are stronger than we expected. if the slightest figures are correct the five start movement , will not be able to govern on their own but would be the party with the highest majority. the biggest losers would be the democratic party. this is

i'm michael mckee.tinue our global tour of the weeks top -- weekly top business stories. in china, the national people's congress opened with a statement of the government economic objectives. >> china setting a 2018 growth target of about 6.5%. and the keys up, omission was last year's pace. this was announced coming out of china. >> the top lines are really that growth target about 6.5%, dropping the line or higher. that is what they included in 2017. we also got the deficit target as well coming in at 2.6%. what bloomberg have reported -- we expected 2.9%. that's what our sources are saying. that would be below the 3% we we -- we saw in we also are 2017. hoping to see retail sales growth at a clip about 10% in 2018. it is those moves that will potentially open up some sectors , including health care, educations, telecoms, and new energy vehicles. we'll have to wait to see about the details. the devil is always in the details with these kind of announcements, but it is interesting to see these are sec

now bywe're joined michael mckee, bloomberg's and policy correspondent.he already got some announcement -- we already got the announcement of policy tariffs, but it seems like this is the first step. these terrorist china toimposing or a retaliation the $50 billion of tariffs yesterday, not the steel into aluminum tariffs. -- steel and aluminum tariffs. you can imagine what the .omments are going to be they will then make a final selection of what will be subject to tariffs and 20 tariffs will be. at that point, the for china to retaliate. that is a ways off down the road. saying, they are not going to let you build over, but we will keep a portion within wto rules, so we can take the high road, meaning political pain for some people, especially in the midwest, orchards, fruit growers, are going to be a penalty in the short term. what about the potential pain for the united states balance sheet? inething else he alluded to that interview was china selling some u.s. treasury. tos it make sense for them do that, even as retaliatory measures? hael: $3 trilli

michael mckee in washington, d.c., he is snowed in. we are looking at the fed and what you heard from the fomc, and of course looking at mark carney and inflation. ,ichael: an awful lot going on but the big story in washington was the snow. all towns shut down yesterday, except for the fed. -- the whole town shut down yesterday, except for the fed. francine: you have the inside scoop on the fed. let's get straight to the bloomberg first word news. taylor: president trump is set to carry through with threats against china. today, the president will announce $50 billion in tariffs against china. a number of u.s. companies believe it could hurt the economy and believe china is ready to retaliate. congress is playing beat the clock with a budget bill. last night, congressional leaders released a spending plan for the rest of the fiscal year that increases the defense budget and provides money for fencing on the border, and the opioid crisis. congress is trying to avert another shutdown. bank has the central heightened policy in step with t

francine: joining us from terrazzo is michael mckee -- toronto is michael mckee.anada. it was interesting to get his take on tariffs and trade. what stuck with you in what he was saying? michael: it's obvious the normal diplomatic niceties don't apply to donald trump, but they do apply to justin trudeau and he was very polite in discussing his relationship with the leader of the united states. clearly, he has a tough job. as the washington post pointed out, donald trump is admitting he's making up a lot of facts and figures. it's hard to trudeau to have a firm base and footing. what he's doing now is taking down trump at face value, but also saying i'm not making any concessions to that effect -- concessions and stories to that effect are wrong. polite and firm is the way he put it. francine: will he accelerate the nafta talks and how quickly can they get going? michael: it's a real issue. we've got electoral politics coming into play with the and theelection july 1 u.s. midterms in november. when you get into the political season, people don't want to negotiate b

michael mckee reports. michael: there is no question the u.s. is on the spot.he steel and aluminum tariffs are very unpopular with other members of the community. we have obtained a copy of the draft communique, and it warns that a country turning inwards is the biggest threat to global growth. in an exclusive interview, the treasury's undersecretary tells me the u.s. is only responding to provocation from china. a at points in its recent history has joined international institutions, they were allowing market pricing within their own economy. but in recent years, that has stalled or reversed. that is a concern for the world because it means the world cannot grow as fast as it should. michael: one of secretary mnuchin's jobs is to drum up competition with china. the administration would like support from allies, a goal made more difficult by the steel tariffs and a fear that trump is on the verge of starting a global trade war. monday morning, the ministers begin with a discussion of risks to the global economic outlook. the u.s. may be on that list. michael mc

vonnie: our thanks to michael mckee at the g-20 summit. fire.ebook under shares are down 5% as a watchdog targets the social media giant. this is bloomberg. ♪ ♪ mark: live from london, i am mark vonnie: artan. i am vonnie -- i am mark barton. vonnie: i am vonnie quinn. a second day of the federal trade commission investigating whether or not the company violated a 2011 personal consent decree. theound guilty, have ability to find facebook $16,000 a day per. violation joining us from san francisco is our bloomberg technology reporter. give us the background. at what point if they decide to get off? -- decide to get involved? >> today, they have decided to get involved in a probe. what the ftc is looking at is how the day -- how did they violate the policy made in 2011 by allowing a university professor to turnover tends and millions of personal data from consent?rs without the vonnie:vonnie: the last time was 2011, 6 -- seven years ago. what would facebook have done wrong in the nascar? -- what would facebook have done wrong in the meantime? >> t

richardson and michael mckee -- nela richardson and michael mckee. >> this is "bloomberg daybreak."rg markets," balance of power, john delaney of maryland. ♪ now to your bloomberg business flash. investors have jumped into the u.s. stock funds weeks after the first correction in two years. according to bank of america merrill lynch there was an unprecedented $34.6 billion in endedney in the week that on wednesday. outflows continue from high yield bond fund's. saudi aramco has gotten a cool response from american investors. at an informal meetings in the u.s. have pushed back on several aspects of the deal, including the proposed $2 trillion valuation. the saudis have indicated the offer could be pushed off until next year. the bonus pool is almost back to normal at deutsche bank. they are warding the staff $2.7 billion in compensation, close to what it was before the deutsche bank ceo started to cut back as revenue fell. that is your bloomberg business flash. david: another twist in the qualcomm broadcasting saga. paul jacobs is seeking bio funding with shares trading higher in the

our correspondent michael mckee is in mexico city. the nafta deal was not easy at all.resident trump's comments are not making it easier. chael: they are not. canada and mexico are the biggest importers of steel in the united states. both have threatened to retaliate with the president signs the tariff order. we are waiting to hear about what has been discussed in the bilateral meetings. they will be speaking to the press and the couple of hours. of hours.uple more tweets from donald trump saying he is going to continue with the canada and mexico sanctions unless a new deal is reached on nafta. at least he wants to continue negotiating. but this undercuts the idea that this is a national security issue. it has to do with traded deficits. .ot a security matter donald trump isolated himself. i find paul ryan's reaction interesting. a sectionrepresents of milwaukee that makes harley-davidson motorcycles. shery: president trump is leaking the turks with the iffsonal -- linking the tar with the nafta agreement and the otherng of a while and issues on immigration. however the

happening.s are vonnie: justin trudeau there with michael mckee.is time for a look at some of the business business stories -- biggest business stories news right now. us is going out of business, the victim of competition and crushing debt. the collapse could lead to the shutdown of hundreds of stores around the world and jeopardize tens of thousands of jobs. toys "r" us out for bankruptcy last fall with a plan to turn the chain around, but failed to turn it around during a crucial holiday season. credit ort-minute deal, i heart media filed for chapter 11 and has an agreement to cut its $20 billion debt load by more than half. i heart owns about 850 radio stations. newer media, such as spotify and sirius xm have cut into the companies at sales. addompany's at sales -- sales. copper is lower on the year, a closer look how to trade the commodity through the futures market next. this is bloomberg. ♪ vonnie: you're watching bloombergvonnie: -- abigail: you're watching bloomberg markets, and i'm abigail doolittle. today, we are taking a look at copper.

policy as and for that lets me some experts joining us now to discuss, international correspondent, michael mckee. the market reacted, the dollar got stronger, and treasury is the same. what backsk powell what some of the policy said on tuesday? michael: you the job where i think i understand what you think i said? he said the economy is going to grow faster but there is a lot of slack in the labor market. bigwe're not going to see changes in inflation, but that could come down the road the right now we are ok and does a coded message to the markets tuesday'soverread testimony. he is basically saying we could absorb what you current address and it seems to have worked because if you look at the yield curve, eels are down across the board. it is interesting what he said about labor market gains. ac buying into steven mnuchin's view that tax legislation could happen without this rising inflation with productivity? michael: what he is saying is all things being equal -- tax cuts lead to more investment, that should lead to higher productivity. but those things take a long time to develop. so we coul

over in new york is michael mckee. marty, let me start off with you.president trump do next? marty: my reading of the situation is donald trump is a guy who asked for him that everything is transactional. it should not have been a surprise that he was going to propose these tariffs. he signaled it for years. he wants this to be a transaction. andants china to respond the chinese have taken a very measured response to these tariffs and says it wants to avoid a trade war so there will be talks. the question is what will come out of those talks? francine: what comes out of those talks will exacerbate a response from china. from china iseard not a response to the latest tariffs. >> that's entirely right. the tariffs that china announced where not in response to the steel and aluminum terrorists. we do not know which gives the u.s. have chosen. until we do know, china cannot respond in any meaningful way. the narrative coming out of beijing has been consistent. the prime minister said they will do all they can to protect an ip cannot force a technology tran

i michael mckee.k dominated economic conversation this week as the white house moves toward the imposition of tariffs proposed by president trump. administration's top economic officials laid out the thinking behind his policies in conversations with bloomberg television. let's start with steve mnuchin who spoke with our chief washington correspondent. wants to takent on the trade issue, it is a very important economic issue. as you know, china's market is not open to our companies and our workers the way our markets are open for them, the president plays in free and fair trade but he wants reciprocal trade and recep will pair deals, that is why we go forward with the 232, there is a mechanism that will be held to do with these issues. >> the folks who said this could end up raising costs of people is a this might hurt economic growth and they cite that as a concern, what is your response to them who feel that these tariffs could ultimately offset some of the economic gains that have been made? >> we'

michael mckee set down with australia's prisoner, scott morrison inverness heiress. -- in buenos airesustralia has got an extension from steel and aluminum tariffs, how concerned are you that this could read -- lead to trade disruptions or a trade war? >> we have a free-trade soaignments -- arrangements i'm not surprisingly, we have a typical arrangement. -- a reciprocal arrangements. we welcome that with no strings attached. it's a good outcome for us to really about the product of how we do business. more broadly, i think it's a matter of taking one's head to ensure there is an spillover effects that are damaging more broadly. more to theerning wider community and we just need to make sure that we keep cool heads in the room. the u.s. is preparing to launch tariffs against china for international property theft -- intellectual property theft. where does that leave australia? quacks just maintaining dialogue with all the players on this and ensuring that we remain focused on what is truly his interest are ultimately. there clearly are some issues between some of these major players an

michael mckee is right down there. give us a sense of what the agenda is. e making some news down there. michael: we are making some news because the united states cashsecretary got describing the state of u.s.-china relations. -- but then had to walk that back because the u.s. doesn't want to give the impression that we are not talking to the chinese at all. secretary mnuchin has been talking to the chinese officials on a regular basis. at this point, the strategy malpass be mnuchin and try to turn the g20 toward china and the chinese actresses of cheating on trade to try and deflect some of the criticism they are going to get over this deal on aluminum tariffs. bitcoins trade the number one item on the agenda? michael: overall economic growth would be the overall agenda item. trade is going to be an important in the corridors discussion. this is an unusual time. the ocd came up just the oecd 3.9%. with a report, as a result, they are changing the way they are talking about the economy, instead of the member countries giving their own forecast. they are goi

joining us now, michael mckee, , and also on capitol hill itself, kevin cirilli. michael, let me start with you. it was a market reaction, but nothing like we have seen in the past. there was a movement in treasuries and stocks, but we are back to where we were? if jay mike: we will see powell meant what he said. do you really mean to suggest that we are going to see a faster pace of rate increases? because you think the economy is growing faster? that's the bottom line question for people on the street. what will jay powell have learned from tuesday's market reaction that he might try to put into practice ira:? i think he did a pretty -- practice question mark ira: i think he did quite -- practice? ira: i think he did quite a good job. we didn't get a lot of new information, but the fact that he sounded a bit more hawkish surprised some people as opposed to it being significantly different. what i would like to hear today, let's mince the word further. what does it mean? longer? i suspect it means longer. 2019, the fed says they would like to do that, if everythin

francine: during us now from buenos aires is michael mckee. michael, that was a great interview.he focus possible trade war between the u.s. and china. can it turn ugly at the g20 or is there another forum? it certainly could turn ugly because the chinese are here as well. not just a chilly reception but steve mnuchin is the man in the hot seat because the tariffs are so unpopular with other members of the g20. is to try to turn the anger toward china, producing overcapacity at depressing prices and they are the ones who cheat in trade all the time, that is the u.s. message. they want to get allies on their side because the trumpet administration is thinking about applying some sanctions on china for intellectual property theft. that will be coming up soon so that they can get people on their side, they can turn the world, they hope, away from criticizing the trump administration. g20, i think originally, it was regulations and cryptocurrencies. has that been supplanted by trade and possibly policy? michael: they're going to continue those discussions, regulations around the worl

joining us as michael mckee, and rick rieder of blackrock is still with us. ing? michael: tax cuts help your wages go up. less personal taxes, 3.3% taken out. their -- gaingain in there from the tax loss. this gives people something to spend their money on. another interesting number was that the savings rate went up. it dropped significantly in december but went up in january, so that is some good news for the idea that people can keep spending, that we are not going too far into debt. we have seen credit card link when season start to rise, and that was a concern about the sustainability of the expansion. pce -- this is no surprise. the fact that we are not seeing any real change here in the inflation numbers, i tried to call up my chart here of that, numbers move the up just a little bit and stay there. that was expected because of the nature of the year ago effects on the numbers. that we are going to see a lot of the numbers fall out. we will not get some reports till april. and then you will see the numbers go closer to 2%. david: what about the fiscal s

kevin cirilli and michael mckee, great conversation. thank you both.ina,y,our this doesn't and the conversation, this begins it. >> i think we at least have the news and the price, we have been working on pricing news of selected tariffs on selected products the last week or so. we price that end, now the concern is where do we go from here? this is this the beginning of a longer-term trend in the back for products and economies and become a bigger issue, or is this the end? i think that is the struggle the market will go through in the next several months. scarlet: and a chart to illustrate this conundrum. we have to import prices and with the exchange rate between the chinese currency and the u.s. currency. talk is through what we are seeing here and what could happen with consumers. happen with consumers. gina: it is important to not there is a big change -- the shift in currency, import prices are rising. even though everyone talks about 2%lation and a benign cpi at -- import prices are up 3.5% on a year-to-year basis. we are already starting to se

joining us is michael mckee. e fear when he got elected, then we forgot about it, and now we are back to . where does that leave nafta? michael: it leaves them hanging. talkingo, they are tough and mexico they are talking trade. trade deals take a long time. i think they are unrealistic saying it will be done by march. it took two years the last time. it could get done, but there are controversial issues, including autos and how much has to be produced. electoraln up against considerations with the mexican presidential vote july 1 and the u.s. midterms in november. if the president is it going, there is no reason to think they couldn't get a deal. but with the america first attitude, does he keep it going? alix: is there the impression that the steel and aluminum hardballll really be a play in negotiations, or do they take it at face value? they take it at face value, which is the worst way to look at it because it suggests he is after a global trade and he has followed that up with tweets suggesting the same thin

alix: joining us now is michael mckee, the chief economics correspondent and someone from citigroup northig take away from the interview. michael: the canadians want to make the nafta deal work, and justin trudeau is willing to accelerate the pace of negotiations because we have political considerations with the mexican presidential vote in july, u.s. midterms in november. they are not in the way halfway through. faster, it push it is good for all three countries. alix: what if that's what does canadian -- the canadian economy look like? washe fourth quarter it 170.4 percent. we are still around record highs . nafta has all the headlines, but the bif underlies this as a risk to the canadian economy. >> that is certainly true. the bank of canada governor cautioned the other day that along with nafta being one of them near-term risks, more persistent as the canadians are highly indebted. interest rates are rising on account of the fed raising interest rates as well as the bank of canada raising rates. alix: when you look at the underlying strain, there was consumers. does that hold up? dana

joining us is michael mckee.chael: it is capital goods orders, aircraft, take out boeing and defense orders, and there is a big rebound up to 1.8%. however, on a three-month annualized basis, you are looking at a gain of .6% because we have had two that months in a row and that is down from 3.7% in january. maybe we are seeing a little bit of the tax bill at work or maybe a catch up. i have the chart that shows where we were, g #btv 7090, the capital goods orders with defense and transportation and you can see the rebound that it there.months below zero it makes it hard to tell exactly what this is. durable goods volatile, hard to say if biggest the tax bill or a rebound -- if it is the tax bill or rebound. nathan: reassuring to see data surprise on the upside, and more broadly, the economy has decelerated a touch in the fourth quarter, maybe a payback for the strength of private spending late last year, or may be still residual seasonality we often seen the first quarter, so it is good to see stronger data. our

alix: joining us now is michael mckee and luke kawa. look at the stock of intel, broadcom, qualcomm, except for qualcomm, they are all higher. it was good to be about rollback and regulation. everything was going to be easier for businesses. now we see the fact that for m&a, it is not the case. >> it is about balancing trumponomics. it seems to be if you want to find a way for this deal and the tariffs and this merger dovetail, it would be protecting american know-how and production. if we want to make this coherence, is all falls under the priority of protecting american production even over the regulation and making things easier for business. david: you have to feel a little sorry for the ceo of broadcom. in february, he said i am going to move my headquarters. by the way, a 40 year tax plan, and now look what happened. tohe is not the first person think he was the darling of the president and have that changed. u.s. to china is closing. the trump administration does not like what china has been doing, particularly in technology. sho

michael mckee, thank you for being here. now, we are going to capitol hill. the house has passed a $1.3 trillion spending will. -- spending bill. kevin: the house of representatives, just passing within the last half hour, a government funding bill. this helps to fund the ball, but not at the allocation that president trump hoped for, and it does not include funding for the gateway project. this has to the senate. a source was walking us through this process. it is likely this is going to be late tomorrow night in the senate, or early saturday morning. there could be a mini-shut down, but this is par for the course , with another temporary funding bill. it comes at a time during increased pressure to get more political appointees approved. we had a briefing here at the white house by senior administration officials walking us through the process. paper point. -- they were blunt. this is not the budget they hoped for, but they were able to get on board. shery: what happened to the dreamers? you were able to get border security, some funding. kevin: in addition

later, bloomberg technology editor michael mckee will be speaking with canadian prime minister justindon't want to miss that. this is bloomberg. ♪ ♪ haidi: u.s. stocks falling for a third day after lackluster retail sales raising concerns. betty: the disappointing data. and escalating risks. they: and you are hired, white house choice to replace gary cohn is seen as a trump

david: that was my interview with peter navarro, and that we are joined by michael mckee, and i want a chart on the bloomberg that shows the market reaction when the announcement came yesterday at gary cohn is leaving. the yellow line is the most art that the s&p is going down, and the market reacted and came back in. a good long way to where they started, is there a lot of market reaction? reactionre's market because they don't trust donald trump the economy and thought gary cohn was a moderating influence on some of his worst instincts. the president will be replacing him with someone but we all know which way he will go, if it is a respected wall street person the market will react positively to that, if it is someone from the inge, they will react negatively. thepeople are reacting to federal reserve, and both gave speeches yesterday suggesting that the fed could raise rates four times. a month ago that was the only think wall street was talking about, so a little surprised gary cohn gets so much attention today. shery: will this be about trade tensions -- but also earnings? mike

we start with the federal reserve and we find our international economics policy corresponded michael mckeec. next for making it over, and among the questions people are asking is if there are three or four rate hikes and two or three adjust?r, will powell if i get a chance i will ask them, but it is a good question. this is going to be a long-running broadway

michael mckee caught up with several of the g20 summit in when osiris. -- in buenos aires .>> nobodywar. everybody is looking at the way to bridge the gap and to find common terms, common community on trade. we are in a very delicate moment. we need to prepare a possible response to american measures and the eu's is preparing for that. we think it is best to avoid any kind of escalation. we must absolutely avoid trade wars. the climate here is a polite climate. we are trying to work -- >> trying to, but are you finding common ground with the trump administration? >> that is not that easy if i look at the measures. we cannot agree with that. my colleague, the commissioner of trade, will be tomorrow and the day after in washington because we think it should not be applied to the eu. we hope to find solutions through dialogue which is the best way to deal with that. we also know it is a global case, that this should be solved globally and not through those kinds of measures. the best way is to find a way to dialogue and have a global response to this problem of overcapacities, which is

later, bloomberg technology editor michael mckee will be speaking with canadian prime minister justinyou don't want to miss that. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. announcer: the following is a paid presentation for the bissell crosswave. ♪ ["blue danube waltz"] ♪

zproip we also have our michael mckee in buenos aires where we talk china and tariffs. let's get straight to news. here's taylor. taylor: you mentioned the trump administration plans to impose heavy tariffs on chinese products as early as this week. according to people familiar with the matter, the u.s. wants to crack down on what it sees as intellectual property theft from american businesses. companies from amazon to wal-mart warn the ad many that a crackdown on chinese products could hurt the economy. in china, the president has begun his second term with a warning to taiwan. in a speech to the national parliament, ji says china has the capability to stop any attempt to formal isles the island independence. ji xi comes a few days after high-level official visits to taiwan. economists surveyed by bloomberg say fed chairman jerome powell and his colleagues will end up raising interest rates four times this year, but they say policy makers are unlikely to signal at this week's meeting. the fed's open market committee begins its two-day meeting today and will issue a sta

sullivan and michael mckee, thank you both very much. coming up next, megan greene, manulife chief economist. the lead al-falih, this is bloomberg. ♪ teleco this is bloomberg daybreak. broadcom hostile takeover bid for qualcomm is likely to face a longer review by u.s. regulators. an extended look with the deals risks. the treasury department ordered a 70 day delay of the qualcomm investor but experts say the review may not be done then a could take up to 75 days. james smucker is considering a sale of elsberry and his other -- sale of elsberry and its others brands. it also includes robin hood flour. it could fetch as much a million dollars. in the u.k., john lewis says higher costs will sweep the profit this year. the retailer reported a 22% drop for earnings. john lewis also cut employees annual bonuses to 5%. that is your bloomberg business flash. david: and a half hour we are going to get the ecb's monetary policy statement. inflation remains low the target of 2%. it went up 2% and in quebec down. it is went to creep its way back up

taxy: and cross-border cording to it official at the g20 meeting, with us now to discuss is michael mckeeational policy editor joins us from the summit. we are not quite surprised given we have heard many countries being upset at president trump's tax package with international provisions. this is just an example of what goes on besides the big issues like trade we have heard so much about. this was a major issue with the how do tax cross-border retail sales that travel electronically? is becoming a issue with various countries of the g20 and the eu is supposed to issue guidance on how it wants to tax the rest of the 21st of this month and the u.s. is very much against that. jersey secretary steven mnuchin theing in holding off and oecd has been a study saying we cannot figure out the best way to do it yet so we need a couple of years to work through the various possibilities and what the u.s. would like to see is the g20 decide to wait before any of its members start to impose taxes. this would have a major impact on american tech companies above all else, especially those like amazon. d

michael mckee in denver to take on the denver broncos.he montreal canadiens. mike, there is not much ice hockey in mexico as the nafta talks move south. no, tom, there is not. it is quite a difference from montrÉal, quite warm, except for the negotiations. it is a weird parallel universe. you have the president's men defending the steel tariffs, and wilbur ross, another veiled nafta threat. another chapter in the 30 chapters they have to finish. progress slowed, but definitely progress. u.s. trade representative robert lighthizer arrived yesterday. they will assess the state of the negotiations, but by all indications, they have made enough progress to go on. we will know later this afternoon. tom: michael, what is the response to wilbur ross holding up a can of, i think it was campbell's tomato soup. how does the mexican government response to something so silly? michael: [laughs] well, i do not know if they respond to that part of it, because, as you say, it is a little bit silly, but canada and mexico are two of the biggest suppliers o

this week, bloombergs michael mckee traveled to saskatchewan to sit down with canadian prime minister in a steel mill where trudeau was speaking with workers on the impact of u.s. trade policies. he told michael canada is repaired to step up the pace for negotiations on nafta. >> canada does not have the same kinds of pressures that both the u.s. and mexico have. we are happy to move forward and make progress. we are diligent about doing our homework, showing up and making sure we are delivering creative ideas and forward movement at the table. i understand the time pressures you are under, and we are happy to accelerate so that we can accommodate them. canada is not the one creating the time pressures at the table, so we will continue to work with whatever speed the others want. >> if trade talks were suspended, would that affect as far as you understand, the the exemption? >> as long as there is a nafta, there will be no tariffs, we have a nafta now and we will have one as soon as we improve it. that sounds to me like we are pretty good on not getting tariffs. >> you say that we wil

later today, justin trudeau will be speaking to michael mckee at 6:30 p.m. eastern. up on bloomberg. alix: i want to get back to that breaking news out of the united states. the response to the nerve agent attack on a former spy and his daughter in the u k. very harsh rhetoric coming out from theresa may. be expellingm will 23 russian diplomats in response to the attack, saying that russia has not given a satisfactory response to the poisoning. all high-level contracts will be suspended with russia, russian assets will be frozen, travelers will also be monitored to the united kingdom. erasing gains for the day. russian stocks are falling. the sterling is moving a little -- a round a little bit. 139. it now seems to be holding in neutral. the ruble is moving as well. russian stocks are falling. harsh rhetoric we are looking at. we will continue to monitor those headlines as we cross. is now expecting rival oil supply to -- to exceed growth and demand on the year after exceeding forecast from other producers. joining us is bloomberg's oil strategist. let's check in. wh

let's get more context with michael mckee. mike, your views?esident has been lobbied heavily not just by business people, but the steelworkers union because the steelworkers union represents the steelworkers and canada. and by canadian and mexican officials. biggest steel importer -- 16% roughly of our still from canada, and 70% of the still we use as per this in the united states. mexico is about 9%, so they are two of the top for importers, and it is a significant concession to them to leave them out of these tariffs, if that is indeed what the white house is doing. let's pull up the dollar mexico and canada to give a sense of where we are moving. the mexican peso relative to the u.s. dollar, you have to look at the performance of both of these currencies over the last month to get a sense of what the -- gyrationsoes expected. scarlet: it shows the president can be flexible with the tariffs them at 3:30pose p.m. the president noted a trade surplus with australia -- and he called australia a long-term partner. do we expect an exemption from th

michael mckee is standing by with one of those leaders. >> thank you.ning me now, the chilean finance minister. you are just back in. you have some controversy. it is a bit greek like. growth was lower than had been reported. can we make too much of that? are you going to have problems ahead? >> it is a pleasure to be here. we have come through an interesting meeting. you are right. we got the first surprise. what we call the structural balance which is what guides our fiscal policy. it was 0.4%. it was higher than what was communicated previously. about $1.1 billion in our initial decision. we will have to do with that and work with that situation. then in a revision which is ,ypically done, new information instead of a growth of 1.8% we 2014-2017 of 1.7% which is a low rate of growth. particularly for a country like slowdown.h had a a very hard landing over the previous administration. that is our initial condition. we are going to have to work hard to turn around the chilean economy. our expectation is it will grow double what it used to. growth of t

we talked to bloomberg's michael mckee to impose a cross-border tax on e-commerce.nomydea that the new should be a tax-free environment i think is nonsense. outs very important we set to clear principles and rules about how we can migrate our tax systems to cope with the new economy, which is excited and great and tremendous for jobs and growth and innovation. it cannot be a tax-free club. julia: tax-free club. joining us now from d 20 is mike mckee, our international economics and policy editor. great to have you with us. we're talking digital tax or relative corporate tax you have been to one or two of these meetings. just how unpopular is steven mnuchin? last year in germany it was described as the g 19 versus one. and i talked to an official that said it is not much different this year. the u.s. division on most issues stands apart from the rest of the g20 on trade but also on digital commerce. you can understand why. amazon, google, facebook, all american companies doing a lot of business around the world. they do not want to face additional taxes from other co

michael mckee in washington, d.c., he is snowed in. and what you heard from the fomc, and of course looking at mark carney and inflation. ,ichael: an awful lot going on but the big story in washington was the snow. all towns shut down yesterday, except for the fed. -- the

lisa: bloomberg's michael mckee and our thanks to a reporter at the white house -- our reporter at thehite house, we hope you get a good nights rest. up next, a bloomberg exclusive with dick costolo, weighing in on facebook's crisis of trust. from new york, this is bloomberg. ♪ ♪ this is bloomberg markets. i'm scarlet fu. lisa: and i'm lisa abramowicz. the fallout continues in the wake of the exploitation of data on millions of facebook users. bloomberg technologies and any chang is standing by with a former big tex ceo to weigh in on the current controversy. emily, handing it over to you. emily: a former big tex ceo that has a unique perspective on this in particular. twitter ceo -- twitter's former ceo dick costolo is with me here. i am curious what your take is on this, given the perspective that you have from running twitter for five years. mr. costolo: i will offer something that has not been outside of that technology community. one of the concerns i have are questions i have is the impact it is going to have on the way people think about api and access to data in the future. obv

justin trudeau told michael mckee was to move quickly on it, but negotiations need to take place ande out how to get it done. unfavorable yield spreads on the loonie. the spread now the widest since june. a quick mention of the turkish lira. in fact, at a fresh record low versus the euro as well. all of that reflect a concern that turkey's monetary policy is in the face of double-digit inflation. turkish bonds have been selling off. joe: finally on commodities, oil and gold. not much going on with gold. interesting weird day with oil. jumped 1.8%. it is back over $62 a barrel. if we look at the intraday chart of oil, there was a spike in the middle of the afternoon that caused it to jump. no one really knows what it was. catalyst.o obvious there is no headline that seemed to to come out. nothing was going on. oil has been in the low 60's range for a wild but it jumped 1.7%. scarlet: when i talked earlier, our guest pointe out that something happened last friday around the same time. joe: mystery stuff. those are today's market minutes. scarlet: more on today's market action and the w

alix: thank you, michael mckee krosner. for equities, a goldilocks scenario.cks. a more complex story when it comes to the treasury markets, a steeper curve and selloff in the bond market. scenario goldilocks for the treasury market. the dollar-yen is up by 6/10 of 1%. mixed dollar story in the markets. this is bloomberg. ♪ >> i am watching equities because of the goldilocks scenario. but i want to take a look at all of the peaks and trougs we have seen -- troughs we have seen over 100 years. highs.e red, the more in the 30's, and the 50's, 20% off the peak. now, only 5%. this is an illustration of where we have common, particularly -- where we have come, particularly because we're looking at the nine-year anniversary of the trough. go, 2014, has been letting it rip. exxon back in the day was 3.9% of the s&p 500. global ciolackrock of fixed income reacts to jobs. this is bloomberg. ♪ >> 30 minutes until the start of trading. this is the countdown until the open. ♪ jonathan: payrolls delivering a big upside. the wage spike short-lived. on steelump's tariffs and