mnuchin: it's most wage growth. i want to take one or two more questions but i don't want to leave here without emphasizing, we're working on russian sanctions, i can assure you that's in the process. i will be back here within the next several weeks to talk about that, but again, i just want to emphasize, i think you know under section 241, we did deliver both the unclassified and classified report, and as i've repeatedly said, we're working on sanctions as a follow up to that. why don't we take the last question. reporter: [inaudible] sec. mnuchin: we'll continue look at election meddling. i might just add, we're closely working with the f.b.i. and giving information as it relates to the recent suit, and as appropriate, we'll look at sanctioning individuals from the information they have. and i would also just comment, we already had sanctions against one of the very significant people that were on their list. didn't change anything. thank you, everybody. appreciate your help. reporter: russian sanctions, are they

secretary mnuchin: no.our analysis, many, many economists believe that over 70% will go to workers. so the, the joint tax is more conservative than us in the -- in that analysis. sen. crapo: that's my understanding. that's a conservative range that you've described there. some i think almost everybody agrees it's at least 25. and many believe it's up as high as 70%. secretary mnuchin: that's right. sen. crapo: with regard to the owners, it's also, as i understand it, understood and analyzed, mr. barthold indicated up to 75% of the corporate tax cut goes to corporate ownership, but that an increasing portion of that ownership is held by pension funds, defined contribution plans, and other retirement funds, not to mention just the stock ownership that members of the middle class now increasingly are owning in their own investments. what are your thoughts on that allocation that mr. barthold discussed? secretary mnuchin: i agree with that. again, there's significant ownership. the capital, even if there are sh

mnuchin: thank you. than chairman crapo, ranking member brown, and members of the committee, thank you for inviting me today. one of my top priorities as treasury secretary is sustained economic growth for the american people, and so i am happy to report that the growth rate of the economy over the past year was higher than the average over the prior twenty years and included two straight quarters of 3 percent or higher gdp growth. the president promised robust growth, and he is delivering on that promise. i am here today to speak about the financial stability oversight council's 2017 annual report. this is an important vehicle for providing congress and the public with the council's assessments and recommendations relating to regulatory developments and potential risks to the financial system. this report emphasizes the importance of economic growth to maintaining a resilient financial system. since the financial crisis, we have had time to assess the effectiveness of regulatory reforms and consider the

steve mnuchin: i hope so.time and he is focusing on a similar economic agenda to what we have done and it went to me how he has lowered the worker tax rate on the small and medium-sized companies and is focused to do it on bigger companies. he congratulated us on our success and hopefully that will show the success for him. we have talked about this statistic in the past and believe a major part of the burden of corporate taxes are on the workers. we had a productive discussion on north korea and he is supportive. we have encouraged him to work with us. it was a productive discussion and he is looking forward to seeing the president. >> the 70% that goes to workers you mentioned to malcolm turnbull yesterday, is that all in wage growth or some in dividend? steve mnuchin: mostly in wage growth. i will take a couple of questions, you have not asked me , we are working on russia sanctions and i assure you it is in the process. i will be back within the next several weeks to talk about that. i want to emphasize --

mnuchin, i am new to this committee. let me start with some very simple questions and the first is what your feeling is about the present level of income inequality in the united states? >> again, my number one focus is economic growth, and i think if we have proper economic growth that that will shrink the income inequality. the ratio of ceo on average worker pay has gone to 270-1 in the years and the top 1% take 24% of all income out of the economy every year according to the federal reserve and the top 25 hedge fund managers made more in the last year we have information for and that's 2014 and then all 158,000 kindergarten teachers according to "the washington post," do you think we'll grow our way out of that? >> yes, i do. >> okay. do you think that the tax code should be progressive in the sense that it demands a higher contribution as a percentage of income from high income earners than from lower income earnings. many things we did in the tax cuts act like eliminating the tax cut and progressive. >> i'm glad we

here are secretary mnuchin's comments on the new sanctions. >> hello, everybody. today the treasury department is announcing the largest set of sanctions ever imposed in connection with north korea. the action targets deceptive shipping practices that have enabled the kim regime to fund its dangerous weapons programs. actions target shipping and trading companies, vessels and individuals across the world who we know are working with north korea's behalf. sanctioning we are 27 entities, 28 vessels, and one individual, all involved in sanctions invasion schemes. today's actions will significantly hinder north korea's and -- korea's ability to conduct invasive maritime fuel -- andhat limit the regime's ability to ship goods through international waters. to cut off sources of revenue that this regime derives from u.n. and u.s. prohibited trade to fund its nuclear ballistic missile programs. we are all show -- also issuing to putl advisory everyone on notice of north korea's illicit maritime tactics and underscore the significant sanctions risk of engaging in maritime

secretary mnuchin, i only have a few minutes here. some allegations have been made or statements have been made even this morning that the tax legislation that we passed will not achieve the revenue targets that we have discussed. i want to clarify a couple of factors. first of all, it's correct, isn't it, that the congressional budget office issued its analysis that if we do nothing, we could expect about 2% growth for the next ten years under current law? >> that is correct. >> and my understanding is that -- and that's an anemic rate of growth in my opinion. what's the historic average? >> again, it's closer to 3%. >> that's what i thought. and what you're projecting is that since we did take action and pass some historic and, i think, powerful tax reform, that you expect through your analysis that we could achieve that or get close to that 3% rate of growth? >> that's correct. >> this is the last bit of information that i understand. i want to confirm with you that in order to make the tax bill revenue neutral, we need to get to a

steve mnuchin: mostly in wage growth. i will take a couple of questions, you have not asked me , we are working on russia sanctions and i assure you it is in the process. i will be back within the next several weeks to talk about that. i want to emphasize -- under we delivered the unclassified and classified report. as i said, we are working on sanctions as a follow-up to that. the last question. we will look at election meddling. we are closely working with the fbi on getting information. suitlations to the recent and will sanction individuals. we already had sanctions against one of the significant people that were on their list. did not change anything. thank you, everybody, appreciate your help. vonnie: you have been watching the news conference by treasury secretary steven mnuchin, primarily on the new north korean sanctions. they are on 27 companies and 28 vessels, and one individual. he said that it is to stop ebay said maritime activities that are effectively ship to ship transfers. let's go to the treasury secret

u.s., we are taking a look at steve mnuchin. you canin an interview, have wage inflation and not necessarily inflation concerns in general. how valid is this? you are laughing. michael: i am joining the rest of the economics world in laughing. lisa: and economist was on bloomberg television yesterday afternoon and he thought this was viable. michael: probably not. for a couple of reasons. we are probably going to get inflation anyway. finally, inflation is picking up around the world. it is a question of how fast it accelerates, and the problem for the administration's they talk about this being a supply-side problem and you increase the supply and they do not have a supply-side problem. it will not take that long for inflation to show up. how does the market react? the market will not wait around to see if in the long term this works out. investors,al view of kind of the obvious thing, you get wage inflation like he is talking about without increasing -- wages higher without increasing inflation, then your profit margin is lowe

and welcome back, secretary mnuchin. i'm looking forward to your testimony today on the annual report of the financial stability oversight council or fsoc. i'm very concerned that the trump administration seems to be determined to remove all nonbank systemically important financial institutions from fsoc's supervision, regardless of what threats those institutions may pose to our economy. as we all know, one such financial institution, aig, nearly brought down the economy in 2008 and had to be bailed out to the tune of $182 billion. fsoc plays a key role in ensuring the continuing stability of the united states economy, and it must not be weakened or sidelined from dealing with threats posed by risky financial institutions. in addition to testimony on fsoc, it is also important today that the secretary address several outstanding inquiries on vital matters with national securitiplications. mr. chairman, as a general matter, secretary mnuchin's handling of inquiries from committee democrats has been completely unacceptabl

>>mnuchin . >> secretary mnuchin, the gop tax plan is terrific for the top one percent, the wealthiest of the corporations. now the top one percent had but not one mention but you and corporations like amberly clark which makes kleenex and huggies send the savings they received from the new tax cut law will help them pay for a restructuring program that includes layoffs. layoffs of about 5000 to 5500 people or 12 to 13 percent of its workforce. and who is paying for this windfall? in my state it's 6.1 million california families who are immediately bearing the burden of limits to the state and local tax deduction. the average californian deducts $18,000 and local taxes each year. while a 100 years deduction ensures that they wouldn't be taxed twice on their hard-earned money. but with the $10,000, california and our elections collected $8000 more. already my constituents have told me they are filled with dread when attempting to plan their family finances. these dollars tax because they help our state and local economies by paying for better schools, better roads and other important se

stephen mnuchin offering more comments. a highlight this morning was japan's latest inflation reads. it posted a challenge to kuroda's reflation efforts. from taiwan, we are waiting on the fourth quarter balance. the index is looking to a second weekly event thanks to the jump we saw on wednesday. in singapore, we are awaiting numbers. recovering from the losses we saw on thursday and we are watching reaction to the weaker profit update in the fourth quarter. stocks are losing some ground. with have an earnings update. drop.darby posted a that's continuing in australia. sidney shares are rising for a third straight day. woodworth is falling despite showing stronger profit. last look at the yen, which is 107 handle.d the it gives pressure on the yen as the currency strength pushes the inflation goal further away. the dollar-yen pressure could remain intact and it could be at the 105 handle. rishaad: look at the yen. anyway, let's look at special counsel robert mueller as he ups the ante in the russian probe. let's get the fi

. >> so you believe mnuchin, when he says you can have rising wages, and that's not, and why is that inflationary >> because it tbs offset by product activity, by the way, profit margins have just soared. >> about profits. >> no, it doesn't. profit margins have just soared. >> that's what's got you giddy, but if they stop soaring -- >> profit margins don't go up forever. they're cyclical >> because they're a cyclical high is a miracle. >> i don't think anybody would disagree -- so if they -- as the outgrowth, so if they stop -- -- >> a fundamental story. >> and bond yields continue to rise. >> 3.5% is my forecast. >> so you don't think that that's going to be any issue with the markets >> the honest answer is i don't know, but we're going to find out. but my opinion is that we're going to go to 3.5% -- >> as the person who coined the term "bond vigilantes" do you think people lose sight of the fact of what makes the read of the ten-year is when people decide they're done selling it and they actually want to lock in wouldn't it make psychological sense that 3% so far this we're has se

steve mnuchin's take on inflation.licies will raise wages but won't cause broader price increases. the dollar strengthens. upheaval at anbang insurance group. china's government to the temporary control of the company. no cherry picking. the european commission preempts the outcome of that you keep a ministers record meeting, saying what it heard of her plan so far won't work. ♪ anna: welcome to the program, everybody. we are getting breaking news. let's get to the banking sector and to all bs it reports a full year attributable profit. they are giving us the full-year net interest income. it is exactly in line with the estimate. the next total income for the billionuarter, 3.0 6 pounds full-year, adjusted returned at 8.8%. the big question is, what they make a profit? --would they make a profit? profit after nine years of losses seems to be what we are getting from the bank, which is still owned by the u.k. government. we will get news on the settlement over the issues. will there be any commentary there? will we get

treasury secretary steve mnuchin grilled on capitol hill today. steve mnuchin perhaps i mean. have him confused with gary cohn steve mnuchin was on capitol hill on topic i've been pretty passionate about. you know this this is how i was referencing i wasn't thrilled with everything in the tax plan. because there's one little loophole in there that makes it so that, well, you steve cohen and his buddies, you know, these private equity investors, can get away with paying a whole lot less than you or me in taxes, percentagewise. why is that? how did steve mnuchin respond? we'll have that for you next. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade how's it going? - alright, how ya doing? - welcome! so, this is the all-ne

alex, thank you, joining us to talk more about this mnuchin interview. bit. they will convene a communist party meeting in the next few days. including monetary and financial regulators. tom mackenzie joins us from beijing for a preview on that. i think after the party congress, everyone is eying this meeting for more reforms for growth targets. tom: that is right. that is what we are expected to get from the national people's congress. we are told by sources they will have a meeting some point in the next few days. this is china's top 400 officials. they will be tasked with signing off on new appointments, as well as giving the green light to some changes in the structure of the government, as well, prior to the legislature meeting. 5, meeting kicks off march which will rubberstamp the decisions that will be made by the central committee in the next few days. it is notable this will be the third time the central committee has met since president xi took his second five-year term in october. it was formulated officially 40 years ago. it points to preside

steve mnuchin isn't too concerned. this is bloomberg. ♪ retail. under pressure like never before.ts 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. david: this is "bloomberg markets." shery: we are seeing a slight rebound. the dow is up .2%. me nearly 1000 points whe swing. the nasdaq reversing three sessions of losses. david: let's turn to the bloomberg first word news. mark: president trump have to decide whether to release another memo from the house intelligence committee. this one comes from democratic members of the panel. encounters republicans -- it upnters republicans' claims fbi misconduct -- of fbi misconduct. the ninth u.s. circuit court of appeals today rejected an effort by one student to opt out of the deal and pursue her own lawsuit. the

places, treasury secretary steven mnuchin says partnership may still be back on the table and dick's sporting goods ending the sales of assault rifles following the mass shooting in a florida high school and destroyed his position taken by a large retailer in the national gun debate. we have markets closing in two hours time and will give you stocks still trading on a momentous february. we have the nasdaq falling the least and s&p and dow down by the same amount, breaking the winning sick we are sitting for stocks, but stocks today are up from the lows of the sessions and with the nasdaq leading aztec and financials as text in lead -- financials continue to lead. -- according to people to move the position, he but it is unclear what changes he could push for an there is a breakup of the company. representatives for his company and for united technology declined to comment but cnbc is saying that ackman is out of his position in herbalife and has unwound his position. this is something that ackman said he had high conviction in, his short position in herbalife, but it has not worked

secretary mnuchin i also asked the administration to help with these efforts to work on this committee to put them first to create opportunities for the middle-class so to acknowledge the staff with a crumbling foundation issue and the staff reacted swiftly and the irs was aligned with that position in many families will receive the benefit so on that basis i yield back the time. >> secretary mnuchin department of treasury with a written statement part of the formal hearing record welcome and you may begin. >> so to express my condolences for the tragic shooting for those that save so many people's lives. >> ranking member and members of the committee it is good to see you. advancing the president's policies through economic growth a core focus of the president and he is delivering last year the economy had two straight quarters or higher gdp growth and was higher than the average 20 years the cornerstone is the regulation of the tax cuts and jobs act already providing the relief to middle income families putting money back into the pockets of hard-working american families. this was e

pence, is he on the same page as secretary mnuchin and others? >> who knows.scussions when, i think, are very opaque in this administration, but we do know there's a general policy and we've seen throughout, and that is they are going to cut off the money flows to north korea, so when pence was in tokyo before going to south korea, he talked about the strictest sanctions ever, and that's what treasury secretary mnuchin did on friday, those 58 designations. that's a start, in a sense, but we need to go a little bit more. the reason why the north koreans want to talk is because they don't have cash. there's a lot of anecdotal evidence right now the regime is really being hurt by the cutoff of money, both u.n. sanctions and u.s. ones. >> my sense of the sanctions is they are focused on shipping and the ability of north korea to transport fuel, coal in particular. how strong are they? there was a moment during the press conference with the treasury secretary which he was pressed. are we headed for an economic blockade? do you think we need that or are close to get

and welcome, secretary mnuchin. as you know, the stock market suffered its worst day in six years with the s&p down 1.4% and the dow down 4.6%. and it looks like markets are plunging even further today. you are the chair of the financial stability oversight council, and i want to know, are you concerned about this recent market rout, this recent market turmoil? >> well, first i'll just comment they have been volatile today. i normally wouldn't be looking at my iphone, but given that the market moves, i'm checking it, it's now up 187 points. so, we're back up today. i'm not overly concerned about the market volatility. i think the fundamentals are quite strong. i have checked in with market participants this morning before i came to make sure that there was orderly market activity, clearance functioning, no systemic issues and i'm happy to report that i got the green lights. >> well, do you believe, does this have financial stability implications? >> no, i don't think these types of moves, given how much the market h

mnuchin sent a message to the market.he market absorbs a month to a treasury of 10 year yield sticking to four-year highs and the federal reserve standing optimistic about growth, investors wait to hear from chairman powell. issue, a big a big week for treasury supply. >> this blowout in the deficit you will see will go from 3% to 5% by the end of this year. it is literally unprecedented. >> if you correlate deficits, government borrowing, interest rates, there is a zero correlation with it. but now i think rates are going up because of the fear that inflation will return and that to central bank will have exit a lot faster than people think. >> it is a point to understand what is going on, it is not really the deficit, it is growth with inflation and reflation attached. we know the treasury had more to issue. to finance the unwind of the fed's balance sheet. >> some of this is international investors stepping up from the markets and returning from where they came from. the hedge and causes were some of the challenges wil

what kinds of questions might steven mnuchin get a hind that, the fact that the most difficult thingh his rising borrowing costs for consumers? >> one of the assumptions behind the ballooning deficit forecast the alone be put out is we will have 3.1% growth for the next five or six years. most private economists do not believe that. what kind of deficits do you really face? and what happens to earnings if inflation goes up and you are thekeeping up with inflation rate? do voters feel they are getting anywhere? there may be tough russians about assumptions underlying all of the administration's forecast. bonnie: absolutely, the assumption has certainly been questioned a lot. you pointed earlier to the fact, where does the shortfall get up here or is that just an open question? to take onn wanted entitlement programs but he was talking about programs for the poor which would be very difficult to get past democrats in congress. that, no one has talked about any attacks on entitlement programs really putting pressure in the yearsudget to come and beyond that, it looks like we will experi

♪ ♪ said theeven mnuchin trump administration's policy will wear it -- will raise u.s.hout causing broader inflation. investors are growing nervous about rising prices. 10 year government bond yields are hitting highs of two point -- are hitting highs. the dollar looks to end the week on a positive note. are we had a printable -- a pivotal moment? is looking at the bond market auction. good morning to you. steve mnuchin has come up with an interesting theory in economics which is that you can andulate the economy deliver growth and we don't need to worry about wage inflation. it is all good, according to the treasury secretary. mark: it is very ambitious. it sounds like he should join the ergo one school of economics. school ofogan economics. it has got to be a worry for the markets, because most of the market is selling treasuries and pushing yields higher on the whole basis that higher wages will eventually feature inflation. the fed's hawkish attitude is based on the curve not really being broken and it will assert itself. higher wages will lead to inflation. steve m

imposed on north korea, steve mnuchin said the move is part of what he calls a maximum pressure campaigninhibit the regime's googler and ballistic missile programs. the regime's nuclear programs. people of the said field transport and limit the regime's ability to ship goods through international waters. mark: the trump administration also advised sanctions against any nation's that might enable shipments of goods to and from north korea. ifsident trump says democrats regain control of congress and midterm elections, some american liberties and constitutional rights will be at liberty. he made the comments today at cpac. they will take away massive tax cuts and your second amendment. by the way, if you had have one, would you have, second amendment or tax cuts? second amendment, tax cuts. it at the to leave second amendment, i don't want to get into that battle. no other trump said president has cut so many regulations in their entire term. calls to boycott the nra has grown higher with twitter users demanding companies cut ties with the group. the nra leaders attacked the media and demo

so mnuchin says we're working on russian sanctions, i can assure you. this was the looming question following the friday before last when the president mueller indictments were unsealed about what president trump would do, if anything, to retaliate against russia. we didn't get a clue about that based on his tweets but now mnuchin is saying these sanctions could come within weeks. to your question about the mood, this is now the fourth trump aide to be implicated in criminal activity. it's now the third former trump aid to be cooperating with the special counsel. so one imagines that they are circling the wagons in and around the west wing ahead of this joint press conference with the australian prime minister, kristen. >> jeff, critical breaking news there. thank you for bringing that to us. i want to go back to ken dilanian on that. ken, we're just about a week after learning that those 13 russians were indicted for meddling in the u.s. election. you heard what jeff just reported. the fact the administration is now moving potentially to enact sanction

coming up, mnuchin sends a message to the markets, don't worry about the debt, don't worry about inflation. the market absorbs 10 year yields sticking your for your highs and the federal reserve optimistic about growth. investors wait to hear from chairman powell. we begin with a big issue, a big week of treasury supply. this blowout in the deficit in the u.s., from 3% to 5% by the end of this year, is completely unprecedented. >> for 30 years, the theory hasn't worked. borrowing, interest rates, there is a zero correlation with it. right now, rates are going up because of the fear inflation bankreturn and the central will have to exit a lot faster than people think. >> i agree it is not the deficit, it is growth with reflation attack. -- attached. treasury has more to finance a wider deficit, but also to -- the unwind of the balance sheet. investors this is returning back where they came from. the yields overseas are grinding higher, but the hedging cost is where the challenges have been. if you look at the differences between hedging as a european investor coming into the human at ash u.

. >> 63 mnuchin is in charge of commit occasions about the secretary mnuchin is in charge of communicationsbout the dollar. >> [indiscernible] >> there's been some inflation data that has caused concern for markets. most of our policies will create growth on the supply side. when supply-side growth comes, that is good for inflation. get to 3% acan comic growth without a big pickup in inflation. , we get thel this fed forward guidance for now. >> [indiscernible] >> thanks for the questions. if you cut the tax rate on investment, you get more capital spending and that increases supply. up here in the front. has oftensident pointed to the rising stock market as evidence of the success of his economic policies and the strength of the economy. if the stock market goes down, should we conclude the reverse? >> the stock market is a great forward-looking indicator. it's the market's assessment of the present value of future earnings. swinging through the ups and downs, the stock market is a great communicator. -- your bestwalker guess is to flip a coin. in the long run, economic policy matters. 35%

what can we expect from steven mnuchin on russia? dan: that is a guessing game.en working with russian companies over the last two years and we have to treasury/forbes list that was released a few minutes before the congressional mandated deadline. there is talk in the speech that secretary mnuchin gave that within the next 30 days, additional sanctions will be rolled out. it is unclear who or what will be targeted by the sanctions but we know the fed of sanctions previously forced entities to restructure their businesses. one of the largest private banks in russia for example began to exit the defense sector in anticipation of sanctions to try to avoid any potential issue. yvonne: dan, appreciated. discussion,g joining us live from new york. tv forget our interactive function, tv , catches live and interviews, and bloomberg functions we talk about. you can see these charts. david: or comment on my tie. [laughter] wilson have guests coming up on the program, if you get questions for them, get them in. and comment as well. this is for bloomberg subscribers. th

and a bloomberg story prompts steve mnuchin -- a loophole and chipping away at a deal. drawing board. the next step to take the offer. david: i.b. gone. is great. it is great. joining us now is jason kelly, 13 -- is out. jason: always the most exciting. said he was going to sell ibm but he's old a lot of ibm. jason: he is pretty much gone. it was always a little bit puzzling to people because he has admitted over time that he has missed tech but he did go .nto ibm bridge in retrospect david: he stuck with the for so long, saying it would be fine. jason: it was not fine. the shorts did not like that at all. jason: there is no bigger names and warren buffett in this regard in terms of who investors, large and small, look to. it is worth noting that while he has largely avoided tech, starting in 2016, warren buffett and berkshire hathaway have started to go into apple a bit. so he has enjoyed a pretty nice appreciation there. at a time when investors and hedge funds have .ot been as enthusiastic alix: some bought apple but a lot about things like apple -- like netflix and

you andust to be clear, principal support secretary mnuchin's efforts to at least explore the possibilityf going back and the tpp? an. reed: i believe that is appropriate, healthy conversation to have. when you look at the world economy and wreck nice that 95% of the world -- recognize that 95% of the world customers are outside of our border, we need to have trade policy that opens up policy across the world. what you have to do it in a way that does not damage as long-term as a nation and jeopardize our security as the united states of america, and that is where the former tpp negotiations were going and that is why we opposed them. we want negotiations that are firm and will get rules that are enforceable. shery: you talk about conversations, but when you went back to the tpp negotiations, all other 11 members have made an agreement area do you expect the united states to get anything from them now that the only thing they need to do is ratify it? if those 11 countries do not recognize the value of -- you look economy at the opportunity that the american economy represents to them and

the parking lresident, mnuchin, have been very happy to take credit for the stock market rally sinceuguration. on some level it did spark more people to invest, but as the market slid into correction territory this week -- >> that's a 10% drop from the last high in the last year. >> -- he was pretty much silent. except for this one inexplicable, in my opinion, tweet. he said, "in the old days when good news was reported, the stock market would go up. today, when good news is reported, the stock market goes down. big mistake, and we have so much great news about the economy." >> what's he talking about? >> he's clearly trying to say that the mainstream media is celebrating the market going down since he touted it going up. first of all, that is absolutely not true. the criticism has never been about the economy. the criticism is why would our administration tie themself to the -- themselves to the market? >> they go up and they go down. >> steve mnuchin, treasury secretary, comes out and says algorithmic trading is partly to blame. he's right, algorithmic trading did impact it. >> hig

mnuchin is talking about. mark: the mexican economy the u.s.meets with commerce secretary today.are hearing that there may be a bit of a spat in the offing, if the u.s., of course, if it places mexico's steel tariffs, tariffs on mexican steel. are we entering into a trade spat between the two nations? it's a dangerous time. lots of possibility of the -- lots of talk of the possibility of trade wars, but donald trump hasn't done anything in that direction yet. they could also be here to talk a bit about nafta, those negotiations back underway. the focus seems to be on steel, week, asocus from last reported by bloomberg, focusing global tariffs. we have tariffs on china that have significantly reduced their imports in the united states. it has been coming from other countries, including mexico. mexicans apparently delivering the message today that if you sanction us for china's problems, we will come back and put some trade sanctions on you as well. mark: i noticed that -- vonnie: i noticed that the yen has strengthened quite significantly . the u.s. dollar, the index is at 90.7 no

secretary mnuchin: i think, asu id, the stock market is upan signify, over 30% since president trump was elected. markettoring thetock -- we are monitoring the stock ntrkets, they are functioning very well, and we ue to believe in the long-term impact of the stock markets. laura: one thing the markets hate is uncertainty, and today president trump raised the stakes for another government shutdown, saying that if he does -- legislati on immigration isn't altered he would be for , it. president trump: i will tell you, i would shut it down over this issue. oif we don't straight our border, we don't have a country. have at borders, we don' country. laura: after those comments, the white house press secretary siclarified that the pnt wasn't actually advocating a shutdown. for more on what is driving the market and the impact o' washington'woes on the economy i spoke a brief time ago withhe neil irwin of ew york times." the market posted these big gains today after yesterdays very steep losses. what is driving the volatility? neilthere is uncertainty around exactly what is going to happen

can we break that and get the strong dollar policy secretary mnuchin do myers -- desires?ncy. everything should be supporting the dollar now. we have growth, a fed that is tightening, a strong stock market, attractive conditions for investors, qe in europe driving money to the u.s. we seeing this in the dollar? i do not have a next but nation. the dollar -- explanation. the dollar should get stronger, but i will not bet on it. francine: who do you think will be vice chair of the fed? place,e is a hawk put in does that do for market psychology? only speculate, so i will take a pass on that question. you keep asking me questions i cannot answer. i do not know if i will get invited back. tom: thank you so much, gentlemen. michael darda a with mkm partners and carl weinberg with high frequency economics. data check now, i think i have a forex report coming up. a number of dollar opinions from david bloom of hsbc. euro-swissie under 115 as a renewed modest about of the swiss franc. on the data front, i am watching bonds more than anything. 3.18, and a solace basis point -- soli

>> first of all the two weeks ago mistake by mnuchin who talked down the dollar. you just don't do that. that is what, that is what happened the day before the market crash in 1987. the treasury secretary back then it, was james baker talked down the dollar on sunday. monday the market went down 2 22 that is really big mistake. he tried to today. one good news, gold is down. if there is flight to quality, it is not going to gold. you know where it is going? the dollar. it going into the dollar maybe a good sign the dollar market is recovering. neil: he had an interesting report, data is good. psychology is poor. >> what changed the psychology? neil: that is what i'm asking you. i ask the questions. i'm kidding. to make a point that trigger point comes when people either pounce on anomaly or something that hints that the crowd is wrong. >> everything that we've seen thus far, despite thesefy races and volatility making it is orderly. a lot of computers are selling. a lot of things seem orderly. what changed the psychology. neil: this is same guys that don't see it

i felt like steve mnuchin wanted to roll his ice at committee. should we get algorithmic trading under control? good luck with that. what do you think, john? what was your reaction? >> i agree with you. look that is something you simply can't deal with. adds a lot to volatility. the real worry in the market is inflation. gold prices up 50% in the last year. i think inflation could be potential worry, six to 18 months out. the market, problem we're have something simply uncertainty. people are trying to find fair value. melissa: goodness out there. it is not selling off on the fact that somebody thinks there is going to be recession. it is growth, it is inflation, it is a move back to what's normal in the bond market and treasurys. it is a return to what we've always known in terms of a free market economy as opposed to the fed being in control. does that make you nervous? >> no, it doesn't. it doesn't make me nervous because i think the reason that we're having this inflation is because of growth. you look at ford, recently had earnings. i own fo

that took a hit when we heard our treasury secretary mnuchin suggest the dollar should be worst less than it is. the day before the treasury secretary james baker said the dollar was too strong. i wonder if talking down the dollar is the won't markets went down. >> secretary mnuchin after make those comments he wisely tried to back off of the following day. but the word were set in stone. the markets reacted accordingly. it looks like the dollar. if the markets begin to anticipate we should see the dollar strengthen. david: i don't have time for more than a round robin. but nicole, what happens tomorrow. do we see a dow ending lower or higher? >> higher on the end of the day, wild guess. david: scott martin? >> down early and higher by the end of the day. david: gary? >> i think we are going lower the next few weeks, probably lower tomorrow. david: danielle? >> i would agree for the longer time, but tomorrow should be turn-around tuesday. david: thank you very much, scott, gary, danielle, nicole. thank you for joining us for this fox business special report. market coverage continues

and thank you for being here, secretary mnuchin. are you familiar with the marketplace fairness act on sales tax? >> yes, i am. >> will you and the president oppose creating this? >> i think the president is fundamentally supports the idea of some type of sales tax across the board and we look forward to working with you and others on that. >> so what you're saying is the president would support a national online sales tax? >> in my conversations with the president on that, he thinks there are aspects of that that he likes a lot and he looks forward to working with you and others on it. >> will you direct the treasury department to conduct a study on what i believe would be burdensome costs on small businesses in non sales tax states? >> i'd be more than happy to work with your office on that and we think there are ways of dealing with that. >> we'd love to have that conversation to figure out how we can do that. in a previous question on entitlement reform, you had said that you had not made the commitment to protect social securit

treasury secretary steve mnuchin announced yesterday that new sanctions will be imposed in the coming weeks. congresswoman maxine waters has called upon president trump to disavow putin. i know you were listening to that conversation i was having. >> yes. >> let me get your reaction to what we saw this week from special counsel robert mueller's investigation. >> well, first of all, let me just say that i have always believed that mueller is very competent. he is very focused, very dedicated. and i've always believed he was going to connect the dots. that's what he's doing, brilliantly. these indictments are indictments that i expected, at least some of them. and i believe that we are on the path to really finding out what manafort did, what he was all about. why did he end up as the campaign manager? what was his connection to putin and whether or not there is some kind of a deal or agreement to lift the sanctions, which i think putin is interested in. >> steve mnuchin came out and spoke to rrps yesterday about new sanctions on north korean ships, maritime issues in particular. he did

two weeks ago in davos, steve mnuchin, going against policy and talking down the weaker dollar. how can they possibly walk away from this. the president over and over got on that podium and said you can thank me for your 401k. >> stephanie, i think you're exactly right. when this white house talks about trends. when the president talks about trends. the trend can only begin on january 17, 2017, that's the trend he focuses on. this is teaching the white house a very tough lesson that what goes up can come back down. president trump now presiding, as you noted, over the biggest stock market drop. he has been silent on the market slide. he's repeatedly claimed the rise but so far he is not owning the fall. ignoring our questions on south lawn on monday. his press secretary, sarah sanders, is trying to put a positive frame on the losses, providing the following statement. she says, the president's focus is on our long-term economic fundamentals which remain exceptionally strong with strengthening u.s. economic growth, historically low unemployment and increasing wages for american w

treasury secretary steven mnuchin will be on capitol hill wednesday to testify about the presidents 2019 budget request. follow live coverage at 10:30 a.m. eastern on c-span three. the senate will continue work on immigration legislation and take a procedural vote in the morning. topics they are debating this week are the deferred action for childhood arrivals program and border security. watch live senate coverage at 10:00 eastern on c-span two. officials say they expect russia to try to disrupt the 2018 midterec

steven mnuchin is facing the senate finance committee right now.e is saying that the administration will continue to work with congress on changes to the tax law. he also sparred with ron white over carried interest. grassley of iowa, asking the questions now. follow the story on bloomberg. type in tv . a working group has reached bipartisan consensus on immigration legislation, daca, the senate reported. this is the bipartisan group that has come up with this. however, we don't know how far it will get. we will continue to keep you posted on this development. this is bloomberg. ♪ vonnie: in new york, i'm vonnie quinn. london, thefrom european close is just minutes away. the african national congress has lost its patients with jacob zuma, following his refusal to resign the party announced a vote of no-confidence against him tomorrow, carrying the way for him to assume the presidency. ,e questioned the reasoning though, earlier today. have a listen. >> is nothing i have done wrong. it's policy. what is the problem? i don't understand. if you th

steven mnuchin is saying he doesn't have anything to do with the fact of whom u.s. is going to be increasing the amount of debt they are selling to finance the deficit. other people say that does is something to do with it. who is going to be buying that? that story is not gone away and that is a plan to stop the credit. david: on one end, you have risk off, certainly less risk than there was in those are very liquid markets and then you have credit markets that are less liquid and that you don't have a signal saying is a lot of risk on. of the might be part reason people are unwilling to sell into a falling market and try to figure out what these things are worth. say, just looking at supply dynamics the treasury market versus looking other markets, ig corporate, we are not supposed to a lot of issuance this year unless there's an m&a boom, so maybe this is a case where a lot of supply of u.s. treasuries, a lot of supply of corporate debt coming online, maybe that is the supply demand dynamic that is buffering credit right now. david: one of the place with all of t

and thank you to attorney general sessions and secretary mnuchin, congressman issa, for joining us orhis very special ceremony to a very incredible group of heroes who we are celebrating today. welcome, all, to the white house. incredible job. thank you. you,e families here with each of you serves and sacrifices for your country. i want to thank the great families because you are also being honored. thank you very much. thanks you. great job. [applause] presidentpresident trump: we aro pleased and i will tell you, to be get it here today to recognize 12 really extraordinary law enforcement officers and first responders, and reward them with the metal of valor. that is a big deal. to recognizegether these brave americans, i know those of us here today and across the entire nation are grieving for the community of parkland and the great state of florida. senseworking hard to make of these events. on saturday, i met with the families and was moved greatly by their strength and resilience and heartbroken for the families whose loved ones were cruelly torn from them forever and ever. we ca

>>> coming up the treasury secretary steven mnuchin certifies before the senate finance committee on it president's 2019 budget proposal. we'll join his testimony live starting at 10:30 a.m. eastern here on c-span 3. >>> veterans affairs secretary david shulkin testifies about his agency's 2019 budget proposal thursday. he apoopears before the veteran house committee here on c-span 3. >>> president trump and first laid amelania trump hosted a white house reception for african-american history month. from the white house east room this is 15 minutes. >> ladies and gentlemen, the president of the united states, mr. trump companied by the sergeant general dr. gerald adams. [ applause ] >> thank you very much, ladies and gentlemen. i really appreciate you being here, and it's an honor for the first lady and i and a true honor to have everybody, all of you, many of my friends in the white house and our great vice president is right here. sole thank you, mike, and so many of our wonderful cabinet. it's really a terrific day, and it's so much fun, so much fun to have you here to celebrate a