shery: i am shery ahn.ay plans to promote new faces from a younger and more diverse generation of formeratives, however, foreign secretary boris johnson and others are believed to remain in the vote. flaviath the latest is on the phone from london. speak a little bit about the prime minister herself, because just a few months back, we were not expecting her to be around this long. flavia: i know. this is the ever surprising nature of british politics. she wasnths ago, fluctuating, and now she is looking shockingly stable. david: on the bloomberg, every 30 minutes or so, there is a new announcement. somebody goes into number 10, goes back out, and then we find out what is happening. what do we know at this point? we are running a blog since early this morning, and it is the big news. so far, it looks like a burger. what you see is the back door, and we know when you see ministers go in and out, people are getting promoted. change as far as boris johnson and others, but a lot of people that would be promoted

shery: and i am shery ahn.as demand side across the northeast and our next guest says this winter could surprise the markets. here with his commodity outlook is michael hague, the global head of commodities association. we have seen the weather with winter storms, the snow bomb and still natural gas prices are not seeing a bigger bump. they are declining. why? >> natural gas, the derivative market, louisiana, most people are paying attention to places far away from that, the northeast, chicago, the midwest. ande are basis locations pipelines feet into the locations. when you get extreme weather, you have a greater demand for natural gas in the areas. not enough infrastructure to get enough gas into the regions and that is when gas prices at $150 per mnd to you versus henry have, less than three dollars. shery: u-revised the year forecast/ >> still optimistic the market should be above three dollars. a very good entry point. the problem with natural gas from a paper perspective, market focus is on wider issues a

live from new york, this is bloomberg. ♪ ♪ shery: this is "bloomberg markets." i'm shery ahn. i'm vonnie quinn. it's time for our stock of the hour. shading lower -- trading lower. release preliminary q4 results. abigail doolittle joins us to break them down. what have we learned that was so bad? abigail: it was about the company saying there headwinds for this year are continuing into this year. if you recall at the end of last year, investors were expecting a hurricane bump at the end of the year. that didn't happen. the stock fell after they reported this third quarter. they did not get to the hurricane related bump. it was neutral to negative. relative to the overall headwind, we were just talking pressure., pricing there are too many cars out there, too much capacity. they were able to get rid of their cars after the hurricane. even though, there is too much capacity out there. there is a sense that may continue into 2018. i think there was an internation that travel one of the strong this year. not clear as to why that will be, and many saying the tax cuts will help cons

shery: i'm shery ahn.ie: keurig is combining with dr pepper snapple group reveal -- in a deal that will ring dr pepper brands such as 7-up under the same roof as keurig's singleserve coffee beverages, creating a coffee giant but will have $11 billion in annual sales area -- annual sales. joining us now is at hand and the. we were speaking about how secretive many of these parties are, public shareholders are few and far between. ed: certainly on the keurig side, that's right. it's an interesting entity, they familylot in the diamond and outside money getting involved in this. they have been a huge consolidating force in the food industry, we've seen them do a lot in coffee, d d d oh. they added krispy kreme's this isly recently and the latest piece of empire building for them. they are huge, competing with the likes of coca-cola and pepsi. amassed a very good position in the hot drink's, have some front and stuff with that and for their and krispy kreme. they didn't have a natural route for retailers for c

shery: i am shery ahn.e have seen pressure from markets across the board with dow nowt now down -- down .1%. the dow is falling. energy is one gator because wti antinues to see gains above barrel. 66%.nasdaq is gaining . the dollar gaining ground after three straight weekly deadlines. vonnie: let's get to bloomberg's first word news with emma chandra. emma: thank you. time is running out to avoid a government shutdown. the next deadline is january 19. republicans and democrats are far from passing a spending bill. there is no negation on either side with key issues, immigration and the budget caps. once againn -- they may once again passing short-term spending bill . a fire on trump towers roof. son, eric,rump's called it a small elliptical fire. -- electrical fire. boat began sinking saturday due to a puncture. the coast guard has rescued 86 people. police in copenhagen say a gold in silver bottle with a diamond encrusted cap was stolen from a bar. the thieves appear to have consumed the vodka and dumped t

shery: i'm shery ahn. eurasia group is beginning the year with a fresh look at the geopolitical risks to watch and china is high on the list. kevin rudd joint bloomberg surveillance exclusively to weigh in on tensions between australia and china. >> if you look at the australian dimension to this it's just one path amongst the broader picture which is been painted by the eurasia group risk analysis for 2018. the rise of china, the response of government within the region to the rise of china and of course more broadly the response of regional governments including the united states as well to how china will handle the ongoing challenge with north korea. so i think for the year ahead all roads continue to point to beijing. on the question of geopolitics but also on the future of the global economy as well. where do you see the relationship between specifically australia and china going and will that hurt trade and investment in australia? obviously there are political tensions between the governments at pre

shery: i'm shery ahn. hitting a wall.sident trump rebuffed a bipartisan immigration plan headed senators to urban and lindsey graham yesterday that would have protected the so-called dreamers. our next guest says every element of the plan was undetectable and warned the white house would be in deep trouble with its base if the president signed it. directororian is the of the center for immigration studies. what was the big issue for you with this proposal? mark: every part of it. it looks like-- it was designed to be a deliberate insult to the president. not justce, it did amnesty the people with the talk of work permits, who were the subject of what we're talking about. all theamnesty to so-called dreamers. so probably 3 million people, rather than 700,000. this is maybe the part that really got my goat. it gave work permits to the parents of all of those so-called dreamers. but the whole point of the dream act, and all of his push for daca, is that these people came as children, came before they turn 16, they did not br

shery: and i'm shery ahn.lesident talk about the tax cuts and possibly unveil plans for infrastructure and military spending. deficit forooming the years ahead. we are at the white house with more. great to have you with us. the chart is showing how the u.s. deficit has shrunk since the financial crisis, but still a monster more than 2% of gdp. how difficult will it be for congressmen to get other legislation through after adding so much to the deficit with the tax cuts? >> it will be incredibly difficult here you have to remember we have not had a budget for the 2018 fiscal year, even though the air began on october 1. continuingn going to resolutions because democrats and republicans cannot come to the table and get on board with an agreement on spending. if you can't get a budget passed, think how hard it would be to get infrastructure bills to pass legislation. it will be very difficult. part of that is because they didn't pass the tax cut last year, and they increased the polarization and made it difficul

shery: what can we expect in davos?ell, it is donald trump, so we know he is going to defend his america first allah sees, where not going to look out for the rest of the world, which is how the u.s. look at things for the last 70 years. what benefits us first, and if you guys do ok, that is fine on the side, but that is not our primary motivation. if he were to say something like, what wilbur ross said today, that there is a trade war underway and the u.s. troops are arriving, suggesting some kind tell tori-tat trade war, then you could have problems. david: there is what he says and how he says it. maybe he is misunderstood, it could be good for all of us, talking about troops and wars and things. am sure people in the white house writing the speech and the economic council are going to restrainede a very speech. the problem with this president is that you don't know if you will go off the reservation and at lip something -- ad lib something. and we know his relationship with theresa may has been rocky. >> there's any

shery: i'm shery ahn.al harassment allegations steve winn, has reached around the world. the news is sending shares of resorts plunging for a second trading day. gaming us for more, our and lodging analyst. gaming law stipulating the reputation of the operator and controlling shareholders considered in the bidding process for licenses. this could be huge. >> bear in mind that they operate within a concession that expires in 2022. what the regulatory body and the regulatory body in that nationstate has cared about is the addition of amenities that draw more non-casino macauipants to build up as a gaming destination. certainly has raised scrutiny with respect to u.s. regulators. david: macau is such an important part of the company. they were planning on expanding further? they have a fracture property on the peninsula, the older part. they have another that opened in late 2016. operating properties and other competitors are expanding. maa company they get 70% for cau and only 30% from vegas. shery: how stro

this is bloomberg. ♪ shery: welcome back.mp administration is pushing back against boosting its economic ties with latin america. questions were raised about china's relationship with latin america. let's bring in the editor of the economic team in washington. this was from the undersecretary of international affairs. he was calling them out. the idb is hosting its annual meeting next year in beijing and he was asking why you guys are holding it there. this is a regional bank of the americas and we are the biggest shareholder. maybe that's not appropriate and he called them out for some meetings they have been holding with china in the region to heighten business ties. he is calling them out on that and saying we want a stake in this, too. david: any developments? what is the response likely to say? >> they have not responded yet. they hope to draft a response and send it to the treasury soon. the meeting in beijing next year, the u.s. agreed to it so they say some of the points that treasury made might not be valid. idb will

shery: i'm shery ahn.ng again of half a percent after an upgrade from bank of america. emma chandra is here with the latest. this all because of an upgrade. >> a bank of america analyst upgraded the stock from underperform to buy. to $64s the price target from 42. onretty bullish report american airlines this morning. he cited the benefits of tax reform specifically for american airlines. he said tax reform is going to be positive for corporate spending and we are to see a isving corporate pricing going to benefit american airlines and what we have seen as the corporate pricing has over the last several years and now it is likely to go up as tax reform means other countries have more to spend. --id: all these big z business executives flying around the country. >> he said it is more likely to benefit the legacy airlines. aboute corporate makes up two thirds of their revenue they are doing slightly better. are falling today. it's a bit of a mixed bag. we have seen a number of reports. december they were say

shery: it's all straight ahead on "bloomberg best." ♪ shery: hello and welcome. i'm shery ahn.s is "bloomberg best," your weekly review of the most important business news, analysis, and interviews around the world. on tuesday, eurasia group released its top 10 global risks for 2018. in a bloomberg "surveillance" special, a distinguished panel of guests discussed it in detail. tom keene began the conversation by asking why the prevailing talent is so gloomy. >> because when the global economy feels the way geopolitics do today, people respond. they see it is a crisis. they know they need to do something. they've got to bail things out, do infrastructure projects, get the banks ready. we had that back in 2008, and everyone knew -- we talked about this -- we all knew it was a crisis and we had to respond. geopolitics are easily as bad today as the economics were in 2008. they might be worse, and yet, there is no crisis, no sense of we have to respond. in fact, if you look at the americas, the one superpower in the world, the one country that could conceivably help to respond and

shery: i am shery ahn. welcome to bloomberg markets. ♪ vonnie: from bloomberg world headquarters in new york, here are the top stories we are following. latin america political calendar hot as nine countries hold elections and for constitutional referendums. we will assess the impact on the region's economic recovery. tepid u.s. growth for last quarter adding to pressure on the greenback to resume is march. where will be right take the u.s. dollar next? four years after going private, dell considering going public again. new details. first, halfway into the u.s. trading session, the friday one. we are seeing records. abigail doolittle is here with more. >> major averages trading higher and record high for the dow and s&p 500, not yet for the nasdaq but the three major averages on pace for weekly gains, the fourth of week in a row. nasdaq is leading despite the fact it has not put in a record high, much to do with the chip space. up 2.2% after its worst two days of the year, helped today by intel, up 9%, the

shery: i'm shery ahn.r washington's business is robert mueller's continuing investigation into russian interference in the 2016 election. it is a pro that has ensnared to top trump campaign officials and an adviser. there is no signs that the investigation is concluding, contrary to the insistence of white house lawyer. here with an update is the managing editor for u.s. government and the trump russia krogh -- probe. give us a sense of where we are at the investigation. is this the middle of the probe? is this near the end of the probe? kevin: i think a straight answer is we do not know. this is a big probe. it has a lot of different aspects. we have only had very narrow, limited glances into it. leaks coming from third parties, whether it is lawyers or other officials and sometimes other places. it has been challenging to make sure we have a full picture of where mueller's investigation is. that is by design. this investigation is intended to be done behind closed doors. it is not like this will have a f

shery: i'm shery ahn.etails are emerging about jeff sessions recusal from the russia probe and possible interference by the white house . we welcome alex went from washington. there was some lobbying of jeff sessions to stay. alex: donald trump directed his white house counsel to lobby jeff sessions not to recuse himself from the russian investigation. this was after it was revealed that sessions had held an undisclosed meeting with the russian ambassador during the campaign. democrats in congress were urging sessions to recuse himself and despite the lobbying, he did. that led to the appointment of the special counsel. david: explain what this is an important story. he didn't order sessions not to recuse himself and did change what happened anyway, shape, or form. doesn't the president have the right to lobby people? alex: interesting question. i'm not sure a law was broken here for example. is a question of appropriateness perhaps. there are certainly democrats like jerry nadler of new york saying that t

shery: thank you.ming up after the biggest tax overhaul in a generation, what comes next? the republican from arkansas and member of the house financial services committee will be here to discuss the gop agenda. this is bloomberg. ♪ >> this is "bloomberg markets: balance of power." shery: let's check in on the bloomberg first word news. plans tosident trump announce today that he will extend waivers on sanctions against iran. that is according to secretary of state rex tillerson, who spoke at the state department. the president had until tomorrow to announce whether he would continue relief from the 2012 sessions that cut off iran's central bank from the global financial system. waiting the restrictions was required under an agreement in exchange for curbing the nuclear program. the house of representatives has voted to extend the government's authority to spy on f oreigners's digital communications. the government authority to review american communications with suspected terrorist overseas. today, pr

shery: i am shery ahn. welcome to bloomberg markets. ♪ shery: from bloomberg world headquarters in new york, here are the top stories. television,st watch did president trump strike the right chord in his first state of the union address. we will break down the speech. janet yellen prepares to step aside as she hands the baton to jay powell, what to expect from her final meeting at the helm of the central bank. for tech earnings with facebook kicking things off later today. we will discuss what investors are watching. vonnie: all that straight to come. julie hyman is with us halfway into the trading day. after the bloodbath yesterday, may be an overstatement, how were earnings? >> relative basis, it was a bloodbath because of tepid action over the past year. the rebound today is becoming ever more tepid. fellh care stocks, which sharply yesterday on the news that amazon, jpmorgan, and berkshire hathaway were teaming up on a health insurance venture for their employees are the weakest group again today even

this is bloomberg. ♪ ♪ shery: this is "bloomberg markets." i'm shery ahn.e: i am vonnie quinn. time for the stock of the hour. shares with travelers are climbing to a record after their fourth quarter rough -- revenue beat estimates. the insurance company navigating one of the worst years for natural disasters. joining us is taylor riggs. >> pretty incredible when you think about what a year 2017 was. to beretty much had everywhere. the top line, the bottom line, we have a chart showing earnings coming in at 228 versus estimates of 150. topline revenue came it -- at 7'5" billion dollars. -- $7.5 billion. looking at this, losses are 100 $35 billion last year. i mostly times the average. the u.s. made up half of that, normally they make up 32%. just incredible when you think what a year this was and how they were able to navigate through that. shery: is this just them? how are other insurance companies doing? taylor: pretty incredible. when you come into this terminal, you see since the beginning of last year, they are outperforming. today,e ted a -- traveler

shery?esident trump has gotten into another war of words with north korean leader kim jong-un after the leader brag about having a nuclear button on his desk. in response, the didn't -- president tweeted "kim jong-un -- will someone from his depleted and few start regime that i have ahim nuclear button, but it is much bigger and a more powerful one than his, and my button works." despite the tough talk, there might be some small progress in relations between north and south korea, with the parties communicating over hotline for the first time in two years. we welcome an expert on national security matters, elliott abrams. he served in the administration of your troubled walker bush and george w. bush, including as deputy national security adviser. he is also the author of "realism and democracy: american politics after the hour of spring." he joins us from washington, where he is a senior fellow on the council of foreign relations. how much will president trump's tweet harm this detente? >>

shery: and i am shery ahn. welcome to bloomberg markets. vonnie: from bloomberg world had coders in new york -- world , herearters in new york other top stories, a group of republican senators leading a charge to permanently ban your marks. we will spend -- states to -- speak to mike lee. are we in for a big letdown, we will speak with lacy hunt, his take on the economic environment this year. a conversation with microsoft cofounder bill gates from the world economic forum in davos. what he says the america first approach could damage the u.s. business in africa. shery: i controversy a congressional spending measure could be getting a second life, some lawmakers and even the president looking back with nostalgia at your marks, funding for -- earmarks. they were this bandit in 2011 with a bipartisan group of senators making sure the practice days a thing of the past. kevin cirilli is standing by with one of the senators. >> we are with mike lee, a republican. but when this bill do? >> it would put in legislation what has been put in place in

shery: we're seeing u.s.propelled to record highs again on earnings topping estimates. the dow was up .5%. all sectors of the green. tech shares leading the gains. we are seeing the nasdaq up 20%, ended -- up .8%. the dollar looking at its worst month in months. that after a fourth quarter gdp missed estimates. japanese yen gaining .9%. inflation is nearing its 2% target. $56 on the weaker dollar. we turn to mark crumpton. mark: president trump is due back at the white house later today. he left switzerland after addressing the world economic forum. the president declared the u.s. open for business as he pitched his america first agenda has being beneficial to the world. next week, the president will deliver his first state of the union address. the un security council is heading to washington on monday for lunch with the president and to see missle remnants the u.s. arming proof iran is rebels in yemen. nikki haley took him to a military base in washington to see fragments recovered from missiles launched fr

shery: this is bloomberg. ♪ ♪ shery: this is "bloomberg best," i'm shery ahn. a day by day look back at the top headlines from the first weeks of 2018. markets were closed on monday, but the dominant story is the resumption of nuclear gamesmanship from north korea. >> kim jong-un has long warned the u.s. that their nuclear capability is a reality, not a threat and was reviving his grandfather's tradition of this message. how significant is the new year's overture to south korea? >> this is significant. it's a tactical shift for the north korean leader. he has been being provocative all last year in his comments, and particularly those directed towards the united states and president trump. this is kind of an olive branch, saying he would be willing to have talks with south korea -- he wants the olympics to go well. this really is a change. we will see how significant it is, in terms of what kind of talks they are willing to have. but as part of the new year's message, this was a definite shift. >> president donald trump has responded, saying the u.s. has a more

shery: i'm shery ahn. get a check of the bloomberg first word news. mark crumpton has more. mark: jeff sessions was interviewed last week by special office.robert mueller's a justice department spokesman said sessions was question about possible russian meddling in the 2016 presidential election and whether president trump has obstructed justice since taking office. this is the first time mueller's team is known to have interviewed a member of the president's cabinet. kentucky governor confirms one person was killed this morning in a high school shooting. nine other people were wounded. officials say a suspect is in custody. the fbi says it is working with state and local law enforcement in responding to the shooting. it happened in the town of ben 10, 120 miles northwest of nashville. a new international partnership against immunity for the use of chemical weapons has been launched in paris. the plan championed by the united states and 20 other countries, seeks to better identify and punish anyone who use

i'm shery ahn. david: i'm david westin in washington.t trump says understands he needs to reach out to democrats on issues such as immigration. will democrats be receptive to his overtures, and what, if anything, can democrats and republicans find is common policy ground, even if they can never agree on politics? , during her career, she has served as a senior policy adviser to the presidential campaigns of barack obama and hillary clinton. we welcome her here. neera: great to be with you. david: let's start with a question a lot of people are thinking about. we had a bernie sanders running to the left, i was around for the rainbow coalition after michael did caucus lost. it was the move to the center. had the deal that went to the center. does the democratic party go to the center of or to the left? think this is an interesting conversation. but really not where the conversation of the party is. there are obvious cleavages between the center and the left. where the real energy is, because of the presidency of donald -- of donald trump,

shery: i'm shery ahn. bloomberg markets. u.s. stocks at record highs. investors very much focused on the result. the dow is up point 7%. industrials and materials leading the gains. 20 percent of s&p 500 companies have already reported earnings. 80% have beaten estimates. up .3%.aq is take a look at what the dollar is doing because it continues to lose ground. headed for the biggest weekly decline in 18 months. secretary mnuchin still in davos expanding on his weak greenback views saying there are pros and cons to the exchange rate. emerging-market stocks are also rallying for 10th consecutive session. vonnie: let's get to the first word news. will delivertrump the keynote address at the world economic forum in davos, switzerland tomorrow. he says he plans to tell the world how great america is. "our economy is booming and now that i am doing better we will only get better." he is the first u.s. chief executive to attend the summit since bill clinton in 2000. china is promising to take action against u.s.

shery: thank you.traight ahead, the senate is in session and facing the same sticking points on a spending deal, will democrats nudge a deal on daca? this is bloomberg. ♪ ♪ shery: this is bloomberg markets, i am shery ahn. vonnie: i am vonnie quinn. the senate is back and so our fears of a showdown with two white house officials, mick mulvaney and the legislative director mark short will head to the other end of pennsylvania avenue to meet with congressional leaders of both parties. lawmakers repeatedly punted on the issue of a spending plan last year and now have until january 19 to get something together. is there progress being made? we had the latest. what will democrats be pushing for, daca is the main thing but they will have to give something in order to get any kind of agreement on daca. >> they are pushing for parity between defense spending and domestic discretionary to spending. they want a dollar for dollar increase on a raise for the pentagon for programs like health care and education and

this is bloomberg. ♪ ♪ shery: this is bloomberg markets, i am shery ahn. vonnie: i am vonnie quinn.imism about the u.s. labor market helping markets to today's highs, the dow passing 25,000 for the first time while the s&p and nasdaq opened at all-time highs. addedid private employers 250 thousand jobs in december and that is before tomorrow's jobs report. to theiving more oomph anticipation. let's bring in trials from -- john herrmann. high-frequency data has been doing really well. repricing oft a interest rate increase expectations? john: it is remarkable, but that has lagged all the improvement over the last year or so. we think the economy will maintain this momentum through next year, this year, through 2019 into 2020, and we look for the fed to do three rate hikes this year, three the year after. the markets refused to get ahead of itself. -- only price in two today this year, one ahead of that. 's the fed's outlook -- the fed's outlook is not that optimistic. we think payroll growth will be better than expected. we think the really remarkable story over the next few years wi

vonnie: shery makes a great point. here in new york from beijing -- is china eating everybody else's lunch? overall, the economy has been booming for a long time. china --is a view that when china was a smaller economy, they were allowed to get away with a lot of things. now, they are a $12 trillion economy. they need to start giving back to the rest of the world. we have comments from the imf number two this week. china needs to start opening its doors a little bit. push through reforms that are needed for an open economy. there's a sense that they have to come to the party, to bank. -- to the party, too. shery: thank you so much. we do have breaking news. paul will not support the stopgap spending bill. we know that funding is running out on friday. they are trying to extend funding until february 16. we had heard from mitch mcconnell telling politico that they planned for a government shutdown. we have heard from the president and the white house saying they do in fact support the continuing resolution. now, senator

i'm shery ahn. david: and i'm david westin. shery: we are seeing u.s.at record ties, the dow -- at record highs, the dow up 6/10 of 1% and being led by industrials and materials, while the s&p 500 is gaining 2/10 of 1%, and more than 80% of those who have reported earnings have beat estimates. nasdaq up 2/10 of 1%. david: let's get to the first word headlines with mark crumpton. mark: transcripts between closed-door interviews between the senate judiciary committee and donald them -- donald trump, jr. will be made public. trump junior and others on the trump team intended -- a 10th of meeting in trump tower with attended a -- meeting in trump tower with russians in june, 2016. robert mueller is wrapping up at least one part of his investigation. according to current and former u.s. officials, all or is almost intohed investigating whether president trump obstructed justice. british prime minister theresa may is confident of getting a satisfactory process brexit -- post-brexit trade deal with the eu. she spoke with bloomberg tv in davos. we will be able

shery: what happens if the u.s. pulls out of nafta?there is a lot less momentum in improving infrastructure then, and what really happens if we pull out of nafta is that the terrorist will go up between the u.s. and mexico. that is another driver -- the up.oarrifs will go david: what if they build that wall. ? >> everybody uses the wall as a big infrastructure project. you still are going to have the kind of incredible trade between the u.s. and mexico. a lot of automobiles -- 40% of imported automobiles was made in the u.s., exported from mexico, a lot of that goes to canada and comes back. it was really created in a true free trade zone. if you have the border -- the border is a problem. a hundredelop mexico kilometers interior and unite the atlantic and pacific coast and turn that into a green technology producing region -- doubt be a tremendous infrastructure project that would create an enormous amount of growth and get rid of a lot of problems shery:. not sure how feasible that would be, but in terms of building the wall yourself

shery: u.s.ks could be on the break of getting up -- on the verge of getting a break. -- could free up billions of dollars for wall street giants. ♪ treet giants. ♪ shery: this is bloomberg markets. the federal reserve plans to ease on bank leverage according to people familiar with the matter. they want to relax a part of -- crisis demands for drastically increased capital levels. it is said to be opposed by the fdic, which has authority over banking rules. joining us is jesse westbrook. can the fed make this happen without the fdic? maybe even without congress? can certainly happen without congress, and probably without the fdic. at the banking regulators are kind of a pack and they don't typically like to do things that not all of them agree on, so they have been working for the several weeks to persuade the fdic to go along with this. appointee who runs the fdic is gone, persuasion might get easier. a trump appointee is expected to take over within the months ahead. how have u.s. regulators b

shery: i'm shery ahn. up at one point topping 26,000. right now paring back those earlier gains. the nasdaq is unchanged at the moment. take a look at these big moves on the fx market as well. at the lowest since january of 15. during back its first gain in five days. handicapped by the risk of a potential government shutdown. the euro round is halting after concerns of the german coalition facing new challenges while the british pound is falling after three days of gains. data shown u.k. inflation eased in december for the first time in six months. david: let's get some first word news from mark crumpton. >> homeland security secretary kiersten nielsen said today numerous people use profanities during an oval office meeting on immigration which she attended last week. she told the senate judiciary committee she didn't recall president trump using a specific paul garrity. -- vulgarity. >> the conversation was very impassioned. i don't dispute that the president was using tough language. others in the room

shery: i'm shery ahn in new york. let's get a check of the bloomberg first word news.k crumpton has more. mark: north carolina's congressional map has been deemed unconstitutional. ruledl of federal judges that partisan gerrymandering gives republicans an unfair advantage in state elections. the decision calls for north carolina's republican dominated legislature to create a new landscape of congressional districts by january 24. a group of voting rights advocates rallied outside the u.s. supreme court this morning. they gathered us justices heard arguments about efforts in ohio to trim their voting rolls by targeting people who haven't voted in a while. inwe have elected officials states like ohio that are making deliberate attempts to take that fundamental right away from our citizens here in united states. mark: opponents of the ohio process say federal law prohibits using voting in activity to trigger purges. a federal appeals court sided with the challengers, but during arguments today, justice anthony kennedy, usually the courts swing vote, said that states are "

shery: i'm shery ahn. this is "bloomberg markets." we are seeing u.s.gaining ground and adding to all-time highs. the dow is up half -- .5%. industrials bouncing back from its first launch this year. the s&p 500 gaining 3/10 of 1% for six consecutive sessions. it is the highest since 1959. the nasdaq raising earlier. we are seeing the dollar continuing to rally for a third consecutive session. treasury yields were sent to the highest yield. a lot to do with the pboc because they scrapped the cyclical factor. the yuan down to the lowest in three months. that took a hit on emerging markets as well which is down a quarter of a percent when it comes to currencies. the japanese yen strengthening 4/10 of 1% after the boj cut bond purchases, adding to speculation they may be headed for the exit. time to get to the bloomberg first word news is afternoon. we are back with mark crumpton. mark: president trump is expected to attend the upcoming world economic forum in dots , switzerland. in a statement, sarah huckabee sanders said the president was looking for

shery? shery: lawmakers are running out of time to avert a government shutdown.f virginia is introducing a bill today to protect federal worker pay as the threat of a shutdown looms larger. congressman, thank you for your time. you introducing this legislation because you believe a shutdown is inevitable? congressman beyer: we want to make sure it the one point -- sure the 1.2 million federal workers will still get paid, they can make their mortgage, car payments, tuition. david: greg walden was on. said, we have children's health insurance in the resolution right now, no daca. why don't the democrats get and deal with daca down the road? been asman beyer: it has long time since president trump basically rescinded daca. we don't seem to be that close on negotiations. every time there is a reasonable bipartisan compromise, steve miller or someone there killed it. have critically impaired the military's ability to make decisions, which is why i think republicans will oppose it. general mattis and all the other military leaders say, give us a budget. been called as

this is bloomberg. ♪ shery? shery: mark, thank you.cture was a significant part of president trump's address last night. the president, calling on congress to pass legislation to stimulate at least $1.5 trillion in new infrastructure spending. >> i'm asking both parties to come together to give us safe am a fast, reliable and modern infrastructure that our economy needs and our people deserve. with that call comes a question of how realistic it is and how it will be funded, since the president was a scant on details. in los angeles, joining us is mike burke. provides consulting and construction services. mike, investors don't seem convinced. cement stocks are falling right now. how worried are you that we didn't see more details on funding? mike: thank you for having me. of course we would like to see more details but we are first of all delighted the president made it a part of his state of the union, this $1.5 trillion plan. this plan is long overdue. on to thegreat follow tax reform we saw at the end of last year. now that we have t

shery: i am shery ahn. markets." "bloomberg ♪ from bloomberg world headquarters in new york city, here are the top stories that we are following. the state of american business will speak with u.s. chamber of congress president and ceo tom donahue. what he sees as the top challenge facing the business community. another market bombshell, or potentially from china. they may pull back holdings of u.s. debt. ofld this be the beginning the end of the bull market for bonds? ford in the hot seat. it has become the latest carmaker to be accused of diesel emissions cheating. what it means for carmakers' futures. we will have the details. julie hyman is with us. we are halfway into the trading day, and julie is keeping an eye on the market action. julie: we are seeing a breaking of the winning streak to kick 2018. the s&p 500 rose for six sessions in a row and is breaking it in this seventh session. it tied the longest stretch of records ever to start a year, as we were seeing records not just for the s&p but for all major av

shery: mexico has many trading partners. if nafta collapses, who would take the place of the united states? amb. gutierrez: let's just say that i don't think nafta will collapse. in the end, we will be able to get a deal that works for the three sites. mexico is an open economy. we have 40 trade agreements because we believe in free trade . we sure that view. it needs to be free and fair trade that guides us. it needs to be beneficial. shery: ambassador geronimo gutierrez, mexico's ambassador to the united states. david: coming up, we will have our exclusive interview with tom onrick, getting his thoughts president trump. the dow and s&p both down a bit. nasdaq is up just a hair. looking at the 10 year treasury yield, it has crossed the 2.6 mark, sitting at its highest level since march of last year. from new york, this is bloomberg. ♪ shery: this is "bloomberg markets: balance of power." david: time for bloomberg's first word news. has: the white house backtracked after president this morning tweeted that he didn't want fun

shery: this is bloomberg. ♪ shery: welcome back to "bloomberg best."re examining eurasia group's report on top global risks for 2018. high on the list is a global tech cold were. microsoft's president and chief legal officer described the international landscape for technology. >> at one level, i.t., information technology, has become more global. the industry has become more global. this is another area where en -- arehas been saying we seeing the rise of china. we are seeing chinese tech leaders emerge as global tech leaders, but at the same time, we are seeing fragmentation in the sector. they're no longer in some respects is quite as global and internet as there was a decade ago and five years from now, we may see more of that fragmentation -- there is no longer in some respects is quite as global and internet. tom: how afraid should google and appleby of washington in 2018 -- apple be of washington? thisthink we have seen unfold over the last decade. you certainly see political commentators and washington, d.c. identify the tech sector as a piÑata

i am shery ahn. >> and i am vonnie quinn. more earnings rolled in, bank of america and goldman sachs reporting earnings. goldman's revenue from fixed income rating tumbled 50% to the lowest level since the financial crisis. laura keller is here. anything to be concerned with, if that isn't too leading a question? >> i think with goldman any concerning trading drop that you have is concerning. that is just how it is. goldman is a bank that has always profited off trading. any time you see fixed income down, that is a cause for concern. i was not listening to that call, so i am not sure if analysts were able to address that question. is fixed incoming seeing a bottom or will we be seeing an uptick. shery: it has some positive turn on investment banking. >> investment banking has been pretty strong for a lot of these banks. m&a has been generally pretty good, maybe not as good as we have seen in past years, but certainly nothing to sniff at. in things like underwriting from the debt side have been pretty good as well. vonnie: th

shery: facebook is making major changes to its social network.k zuckerberg announced that usersmpany will shift news feeds back towards posts from friends and family and away from businesses and media outlets. a move that could mean people spend less time on the site. wang.g us is selina this one post from zuckerberg could be very costly. apparently, his personal fortune billion on this friday. why did he do this? >> that is precisely correct. his posts and to have that effect. what he is saying is he wants to bring facebook back to its roots. the newsfeed has exploded with advertisements and branded content, and he wants to bring it back to being a social network. changeans they will their algorithm so it prioritizes posts that sparked engagement and back-and-forth conversation. react seeing shares negatively because the implication is it means less engagement. he said that himself in the post. less engagement means fewer impressions, and that could mean a lower ad load. on the flipside, pricing could increase, the type of content that these bra

shery: welcome to bloomberg markets. vonnie: from bloomberg world headquarters in new york, here are top stories. we are following this hour. shut down, day three. mitch mcconnell calling for a temporary spending bill with a promise to deal with daca and immigration later. so far, no democrats willing to budge. we await the senate scheduled vote this hour. stocks are edging higher to a certain extent as i investors shrug off -- the dollar continues to weaken and --asuries netflix's fourth-quarter earnings. the stock is higher right now. else is going on with stocks. abigail: we are looking at gains for the major averages. record highs for the s&p 500 and the nasdaq. the dow has been flipping between gains and losses, now flipping higher. this is pretty remarkable considering the government shutdown is on day number three. perhaps we're seeing optimism about the senate vote around this time for a short-term spending plan. perhaps thinking that will move through and we will not have to go to an all out shutdown but it's no

i am vonnie quinn. >> and i am shery ahn.ting in manhattan is getting a little less expensive. the city four years, is flooded with a large supply of new york apartments. we bring in jonathan miller, a real estate appraiser and consulting firm. prices, are they an effect of the supply out there, or demanding less because of this new tax bill? >> it is early to factor in the tax law, and i think that will ultimately do -- favor the developers. we have an incredible volume of fordevelopment come in rental that far exceeds what we have seen in luxury condos. the problem is supply. that is why we see record concessions being set in at least three of the boroughs. >> housing changing from the last couple of years? a side note, we are still talking about the median rent of over $3000. >> exactly. the way to think of this is that rents are coming down from a .ery high level to a high level in other words, you shouldn't look at this as a massive discount coming up. it is a slow grind. the supply coming into the market in terms of new

shery: so what else is new? mifid ii rules go into effect, and the u.s.

president vincente fox ♪ shery: mixed messages.ampaign of proposals and fiery rhetoric around immigration, the president is softening his tone.

shery: i'm shery ahn. welcome to "bloomberg markets: balance of power."s on the intersection between politics and the economy . david: pass the salt. tells bloomberg the government and hav may have. won't back down. michael wolff says he stands by in his book about trump's presidency while the president calls a phony book full of lies. choosing sides. robert and rebekah mercer wants trump and steve bannon, but with the release of "fire and fury," mercer has kept the back of the president while keeping the purse strings with bannon. ♪ david: states like new york, new jersey, and california have reacted strongly to the new tax laws limits on state and local tax deductions, saying they