i am shery ahn. vonnie: welcome to bloomberg markets. ♪ from bloomberg world headquarters in new york, here are top stories from bloomberg and around the world that we are following. president trump steals the show on day three ahead of his highly anticipated speech on friday, he has already met with theresa may and the israeli prime minister netanyahu. also, brazil's finance minister and his take on the former president's corruption charges and whyanimously upheld his absence will make more room for candidates. apple says it is ready to take on amazon again. this time in the digital bookmark. hour.t this let's go to abigail doolittle for a check on the market. gains fore have solid the s&p 500 and the nasdaq. another all-time high for the s&p 500 on pace for a record closing high after a little intraday volatility earlier as part of the nasdaq, slightly lower following what we saw yesterday. having its worst day of the year. gains today but the dow transports once again underperforming one port -- d

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

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: 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

i am shery ahn. vonnie: i am vonnie quinn. welcome to bloomberg markets. ♪ shery: from bloomberg world headquarters in new york, here are the top stories. it is payroll friday, jobs report delivers a worse than expected rise of just 148,000 jobs with wages come in line. we will discuss that and more with austan goolsbee, the professor of economics at chicago -- university of chicago boon school. front, naturaly gas fell to the lowest in a week as cold weather in the eastern half of the u.s. is expected to ease after january 8. isnie: abigail doolittle with us because we're halfway into the trading day. the final trading day of the first weekend 2018. >> happy about what she just mentioned, the cold weather will ease after january 8. natural gas down about 3% on the news on the big cold weather we have had an moving forward we hopefully will have the thaw. why natural gas is down. major averages, we see a rally, major averages up for a fourth day in a row, more record highs with animal spirit stirred by enthusiasm for tax cuts.

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: i'm shery ahn. vonnie: and i'm vonnie quinn. welcome to bloomberg markets. and injured over 260. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. shery: here the top stories on the bloomberg and around the world. debate. immigration taking center stage as president trump meeting with a group of 20 lawmakers today. house speaker paul ryan singh republicans want to solve the issue. we head to washington for the latest. ethics whirlwind. -- fx whirlwind. the pboc scrapping the countercyclical factor for the yuan. after shelving his hedge fund plan bitcoin champion's mapping out a new opportunity. more on the bloomberg scoop later this hour. vonnie: breaking news on microsoft. saying that ship fix may significantly slow some servers. this is a fascinating statement. microsoft saying the greatest impact will be on corporate data servers and that windows 7 and a and earlier will be the ones that are most affected. it's interesting because it looks like the slowdowns could be more substantial than intel itself has

i am shery ahn. vonnie: i am vonnie quinn. dalio ringing the alarm on a flashpoint on markets, he says they can come investors are in store for the biggest crisis in decades. sensitive,re more like a 1% rise in bond yields will produce the largest they are market in bonds we have seen since the 1980-1981 time. >> has the bear market started? >> we are in it. vonnie: let's bring in lacy hunt . you have been waiting for what may be this moment for a long time. why should the bear market started to happen now? >> i do not think it is starting. since 1990, we have had many predictions of a bear market in bonds but it has not happened. -- what we have been saying is that while long-term interest rates can rise over the short run, for any one of numerous factors, the economy is to fundamentally week 20 rates to stay up. the race to stay up . we think that 2018 will be considerably slower as we progress. and that the ultimate direction in long-term yields this year will be lower. shery: a consistent trend in your quarterly review out

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: 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. 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.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

i'm shery ahn. david: and i am david westin. bloomberg markets: balance of power cocoa with a focus on the economy. shery: too little too late. steve bannon's attempts at peace with donald trump. clock is ticking and time is running on a partial government shutdown. is january 19. will lawmakers decide to once again pass a short-term spending measure? despite a rousing speech of the golden globes leslie in los angeles, oprah winfrey said she intention of running for president, but will the buzz change her mind? ♪ david:

shery: and i'm shery ahn. welcome to "bloomberg markets." shery: here are the top stories on the bloomberg and from around the world that we are following. building on to a roadblock, president trump is that to unveil his imperfection plan at the date of the union address tomorrow, but top democrats are already bashing his hope for bipartisan support. jv holdings taking a big step of keurigerage industry, greenmount will take control of dr pepper for $18.7 billion. allegations against steve wynn causing ripple effects for his casino business on the other side of the world. the macau government is now scrutinizing his shareholders and directors. the stories coming up, for now, let's get agenda the markets. we are seeing curbing games is always last week. closing a record high, coming off a little today. hovering not quite at lows of the session today, but some of the pressure, we see rates rise. 10 year yield of their highest since april 2014. julie: that is starting to feedback into stocks. to naftato get negotiations, the latest round of neg

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.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

i'm shery ahn. david: i'm david westin. welcome to "bloomberg markets: balance of power." n the intersection of politics and the economy. shery: here are the stories we're watching. president takes action for the first time on terrorist slapping duties on important solar panels and washing machines with a signing in 30 minutes. to the ceo to see how it will impact his business. can congress and the president reach a deal on daca before the next shutdown deadline? we will hear from white house legislative director mark short says the significant -- who says to give him progress has been made. while americans feel positive about the economy, they are not thrilled with the job performance of president trump. we look at whether this unusual dynamic could spell doom for the gop's in the midterm. ♪ david: president trump is headed to davos later this week. concerns about propriety --

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 t

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

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

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

i'm shery ahn. vonnie: i'm vonnie quinn.me 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 consumer spending. and oblique

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

i am shery ahn in new york. david: i am david westin in washington.ouse surprised the business and political world yesterday by announcing president trump will join the world economic forum in switzerland. this is the first time an american resident has been at the meeting since bill clinton, 18 years ago. here is bloomberg's washington correspondent here with me. what is he going to face? >> the president will see a very skeptical audience. obviously, the president campaigned on being a populist and an america first president who derives this idea of wealthy people have gathered in the house talking about localization. the america first message over to davos but he may have things they may like as well. tax reform, deregulation, business leaders and other countries might like what he has done thius far. potentially taking on iran and north korea and really having the bellicose language. those of the types of things that scare international investors and world leaders. it could be a very interesting discussion of the president will have with some of t

i'm shery ahn. david: and i'm david westin. bloomberg businessweek editor-in-chief megan murphy. great to have you at hand, and josh green, who was on the phone with us. what we know about this yet but this is quite a developing story? josh: the excerpts from the book became public today, and they were the breaking point between donald trump and steve bannon, who was the architect of victory.residential his most important advisor in the white house early on, merely and relationship was rocky did not work out. now, trump, over a course of months, owing to media profiles of bannon, books like mine, and thinksly like wolff's, bannon is taking too much credit and is insulting his family, and he has decided to toss him overboard. understandknow and steve bannon, and when he left, he said i will go to war against theyone who is against president, but i am for the president. in writing this book, wouldn't he have had to understand that he was declaring war on donald trump and his family? it is a good point, but it is one that does not

. ♪ ♪ shery: this is bloomberg markets, i am shery ahn. vonnie: i am vonnie quinn.enate 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 pell grant. rulehas been an ironclad democrats have held to four years and they want to adhere to that which is creating problems with republicans who say becoming got is hit hard by this automatic cuts and they want to boost funding for

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

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: 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

shery: i'm shery ahn. welcome to bloomberg markets.m new york city, here are the top stories on the bloomberg and around the world that we are following today. the first trading day of 2018 and u.s. markets are sharply higher. what will be different about 2018 and what does market performance hinge upon? we will head to washington for what to expect from the latest round of spending bill negotiations and what it could mean for the republican agenda. amazon's next deal? predictions for the internet giant. why amazon could take aim at target this year. julie hyman is with us. we're halfway into the trading day. julie:

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,

. >> im shery ahn. took just 23 days for the doubt to jump from 23,000.ocks have reversed earlier gains. they are now falling. nasdaq inventory report showing us smaller withdrawals in the gas sector. david: we now turn to mark crumpton for some number first word news. stormthe powerful winter churning up the east coast of the united states is wrecking havoc on roadways and runways. much as awill drop as foot of snow here in new york. there are closures at new york's jfk and guardia airports. travelers in other parts of the u.s. are being affected. bad weather has forced cancellations of hundreds of eastbound flights from o'hare. the trump administration is proposing regulations to ease the interstate sale of health insurance policies that cost less but may not cover as much. e would make it easier for the sponsoring of health plans that don't have to meet all the requirements of obamacare. insurers are skeptical of the idea. incumbent republican david won after his race ended in a tie. the win allows the republicans to maintain a slim majority in the hou

. ♪ >> new new york, i am -- it is noon in new york and i am shery ahn. quinn and welcome to bloomberg markets. ♪ shery: from bloomberg world headquarters in new york, here are the top stories we are following. president trump taking a tougher stance on immigration, will his latest gig at the democrat this track from the government shutdown negotiations at 3:00 p.m. u.s. stocks open at record highs, looking like they did last year with the dollar halting its losing streak ahead of the release this afternoon of the fed minutes. the big takeover today in the energy business, dominion energy has agreed to buy scana for nearly $8 billion in stock. project nuclear hampered their value. vonnie: halfway into the trading day this wednesday. julie hyman is with us. julie: we are seeing a record

. ♪ ♪ 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

shery: i'm shery ahn. falling on the day are many abigailshares, and doolittle joins us.nies have become the new villains here. this really has to do with president trump at the state of the union, talking about the idea that drug prices are too high. let's listen to president trump. >> i have directed my administration to fix the injustice of high drug prices, one of my top priorities for the year. julie: -- abigail: to your point, around in the villain role of wall street companies. in terms of the biotech companies, whenever drug prices come into the conversation they take a hit. if we help on the bloomberg we can see what is happening not for --r gilead sciences sciences, but for other big names as well. sciences see gilead higher, higher, higher and it than really taking a hit. shares were also higher on the amazon, berkshire hathaway health care consortium. some of the other big names in the mbi overall are affected. shery: with midterm elections coming up i can imagine this would be an important issue. abigail: and for president trump its very important. because ri