there are lots of problems with the weak peso for mexico. e way it helps in terms of manufacturing competitiveness. but mexico imports an awful lot of its food. in fact, i believe they're the biggest importer of corn from the united states. so a weak peso hurts the average mexican and certainly hurts the poor mexican to a very, very substantial degree because most food products are ultimately dollar denominated. >> got to ask two more questions before we go. one is the issues of russia have dominated the headlines recently with this administration. i'm just curious, as someone who's part of this administration, how much of that dominates your own conversation and how worried you are to the extent it side tracks some of these other policy projects, which so much of our add generals focused on. >> i don't think it has very much impact on the economy at all. it certainly has not been a big thing in terms of the activities of commerce. we're trying to build up domestic manufacturing. we're trying to help with deregulation. we're trying to help wi

erik: it was not so long ago you said the peso at 22 over the dollar was overdone.ould you characterize the current level? agustin: it is much closer to what it is supposed to be. i think it is undervalued. there is still an important unknown there, which is that we don't know how exactly the bilateral relationship between mexico and the u.s. will ship up. -- shape up. erik: of course. agustin: taking that into account, and given the other fundamentals of the mexican economy, i think that the peso is still undervalued. agustin: -- erik: by how much? agustin: it depends on different models. erik: the one you like, let's say. agustin: i look at several different models of the same time. erik: just give me a sense -- are we talking about 5%, 10%? agustin: it is no more than 10%, but it is still undervalued. erik: is there anything more you can do with this uncertainty of u.s.-mexico relations in the backdrop to get the peso to what you think it ought to be? we do not have a parody on the exchange rate. our target is inflation. therefore, we asked to precisely guarantee

he talked about uncertainty weighing on the peso. he thinks it is about 10% of undervaluation because of gas prices. price, another reason inflation is moving higher and why economists say the bank of mexico will have to raise its key rate again next week. peso -- thankican you so much, kathleen hays joining us from new york. we will continue our central-bank discussion later this morning with a the philippines central bank. that is after the philippines chose to keep rates on hold at a record low of 3% while cutting its inflation forecast. .hat interview coming up malaysia's central bank will crackdown on currency fixing. they will implement new measures by january to further curb speculation. chief international correspondent for southeast asia is on this story. do we know what they are planning? >> banks, beware. they will name and shame any wrongdoer and disclose the penalty amount. they say it will be very strict. banks have been told about the new measure. it goes into effect next january. they are trying to ensure ringgit secur

is it ironic that the more successful he is, it drives down the peso and exacerbates the trade problemt is a complicated equation. i think what it does show is markets tend to adjust to realities and as the probability of the trump presidency grew, clearly it had implications for mexico and others. now that the trump presidency is a reality, it is even more clear -- it has even more clear implications. mark: on "bloomberg daybreak: americas" a little earlier. a look at japan's economy facing bonds in the u.s. and u.k.. this is bloomberg. ♪ vonnie: and is time now for our battle of the charts. access theses charts on the bloomberg by running the function featured at firstttom of your screen is taylor riggs -- screen. first is taylor riggs. taylor: i wanted to look ahead at the fed meeting and a look at the short-term yield curve and where u.s. and u.k. bonds are trading at that.i give the spread between the u.s. two-year and the u.k. two-year. usually, the sprint is negative as the u.s. yield is lower. there is nothing new about that. that is what should be expected. look at 2016.everyt

and has backed off to a very minimal set of adjustments to the peso. response to the trump administration's backing off the very dangerous policies that i was criticizing that the peso has risen. that's really a confirmation of what i was saying. >> i will take that to the bank. i'm glad you clarified that so thank you. >> cramer, are we -- >> yes. >> let's get down to jim cramer. he joins us now. i don't know if i need to ask you anything, jim. >> first let's say hi to larry. i miss him. i miss him from the academic days. >> good to see you, jim. >> thank you. thank you. i love that peso discussion just now. it's true. the nafta backoff was rather shocking. like on page 18 of the papers and larry, this is a reason to think that the peso can continue to climb. >> we'll see, we'll see. there was no reason why the peso needed to collapse except for their extremist rhetoric. they are backing off their extremist rhetoric if once it's recognized that they're backing off the extremist rhetoric, they stay with that policy. i suspect the peso may continue to cl

coming up for the mexican peso, it is basically able to offset the fed rate hike.racy: david clearly has for a break from the eurozone date. a potential second referendum gets we have not seen the pound move significantly. what is going on here? complacently in the market? is it that they have been priced in? >> i there are two different things happening here. on the pound, if your member since last june it has fallen a lot. we think the pound has the worst case scenario and if you get the much more efficient and clear brexit part from here on, perhaps the pound will recover. the biggest selloff has pushed up u.k. inflation. that makes it a little more comfortable. the euro is completely different picture altogether. new riskaunched a barometer. within the eurozone, basically markets, equity markets, perhaps a slightly underpricing in the upcoming political risk. we think the euro should traded down a going forward. as you well noted this range has been quite significant for the aussie dollar. we are right smack in the middle of that range at the moment. would you

you can see a huge weakening of the peso before november. especially today, we can do some kind of sensible deal with mexico. what would have to be agreed upon? >> the agreement allows for modifications in the existing structure. a sensible agreement would look at things like domestic content rules and how much of a ?ass-through do you need in addition there are a lot of provisions where the competition between mexico and the united states and agricultural products. those are some areas of concern and in addition there are concerns regarding some of the labor requirements and labor standards. those are ways we can have a negotiation. >> the canadian dollar didn't react so well. what will be the first priority? it looks like there will be so many things to do in the legislative session that we may not get to trade. >> we seem to be focusing on the health care or political care act. that is an enormous canada forms. realize once you peel the onion, enormous amount of unintended consequences happen. whether you are looking at medicare or medicai

, dollar now the lowest level against the peso since election day. spiked to 21. it's interesting. my wife was down there during the period of the election, holy cow, there was a lot of activity. >> what do you expect out of if not lacker, powell, fisher at 1:00, does she seal the deal? >> i think in the fabulous interview with steve liesman yesterday, jay powell, it's time, we don't have a lot of turmoil overseas, things are very good here. we're starting to get nice pickup. if we get some fiscal stimulus, you're really going to wish we did three. i think -- look, the whole tone is set. and bank of america which is the number one gainer if they raise rates, is telling you that stock is telling you what's going to happen. just watch b.a.c. and you're going to know exactly what they're going to do. >> so the fact that goldman is the once again the top dow component -- >> exactly right. goldman is kind of sticking here in this 2.50, 2.60 level. this could be the breakout. >> i know. but now it's trading about 1.6, 1.6 times book. >> that whole thing yo

effort to stabilize the dollar/peso exchange rate? that's unclear at this point. he did speak about bob rubin, treasury secretary under clinton, who set up a lending arm between the country's central banks to give mexico a source of capital. the peso is down 66% against the dollar, since nafta, taking a sharp leg down since the recent election because of president trump's harsh comments. it's interesting to hear what secretary ross said this morning. the continued rhetoric from the president, you wonder if there's a little bit of a good cop, bad cop dynamic going on. >> certainly. the other thing he said, he didn't think that mexico had done enough to raise the standard of living in mexico. kayla? >> he talked to michelle specifically about what a stronger peso could do to help mexico. if you have a good peso, it's good to attract jobs but hurts their ability to purchase things like food and things that are imported from the u.s. mexico in the early '90s was praut into the organization of economically developed countries but it's not really a developed country. >>

obviously the mexican peso got slammed when trump one -- scarletwon. you said, rather than the u.s. and mexico being antagonistic with each other, i don't know if it is win-win, but the situation in mexico emerges better than the status quo. also, the peso had a great year. year last year. generally, it is still weak. i think it depends. if the rules of origin work north american continent requirements, that is a win for the united states. if the rules of origin become american content requirements rather than north american content requirements that it becomes a lose for mexico. the difficulty part for mexico seems to be the safeguard clause and how that trades off with the rules of origin strikes me from the very beginning of the process as a key issue. be lookingina must at this from the sidelines with a great deal of interest. agrees to,e u.s. china seems to loose. how does china use this information to negotiate a better position for itself? toit is hard for china negotiate the terms of a deal between the united states and mexico. china will be tra

breaking news on the peso, the mexican peso, we are seeing some strengthening and the peso by about 1.6% halloween the news. the central bank of mexico is considering requesting a federal reserve swap line as a peso tool . it has not done so yet but just a whiff of that, through people with knowledge of the discussions, is helping the peso. it is trading at about 19.78. some context from our own michael mckee, we must remember mexico had a swap line with the fed during the financial crisis but it expired and we would need the -- mexico borrowing in .ollars and paying back let's check in on first word news, mark crumpton is in our newsroom. mark: president trump's new travel order will drop iraq from the list of mostly muslim nations whose citizens will be barred from the united states for 90 days. the president has delayed issuing the new directive until at least friday. the order is a revision of a travel ban imposed january 27 that was mocked by federal courts. the delay allows more time for the administration to build political momentum from the president's address to congress before

the peso is doing well. t: and has has a -- it has had a huge comeback since its record low in january. comments last week perhaps the pace of could be ready for rebound. this is what i am looking at. it as a sizable division in the outlook for u.s. rate. the white bars are asset managers positioning on the 10 year treasury note futures. they are long. it is the largest position in a year. speculatorss are holding record net short positions through the end of february. there is a caveat. recent positioning in the last two or three days might be different given that officials signaled the rate increase will come in march. you have the fed's immediate policy and more importantly the long-term implications for potential fiscal policy inflationary boost. we do not have details to sort that out yet. all we have is rhetoric for the moment. investors are waiting for some kind of update on that. joe: it will be interesting to see what happens with this friday job report going into the next fed meeting. see if this st

and the peso has plummeted in that time, but it actually surged this morning against the dollar. can see that in the dollar chart, which is down about 2%. after wilbur ross said a new nafta should help, not hurt the currency, and that he'd consider a mechanism to stabilize the exchange rate between the two. that invoked memories of a former treasury secretary, bob rubin under president clinton, who lent about $12.5 billion to mexico to stave off a currency crisis just after nafta was first implemented. it was a bailout of sorts at the time. and normally, it is treasury that controls these economic levers, but it is very clear that secretary ross will be taking an outside role in the u.s.'s dealings with the rest of the world, carl. >> kayla tausche in washington. kayla, thank you very much for that. good stuff today with wilbur ross on "squawk." >>> when we come back, one day after the biggest tech ip nonk years, we'll talk valuations with a ceo whose own stock has had a run-up in the past year, talking about better than 400%. >>> plus, the always outspoken lululemon founder chip

idling president trump's people understood the peso are doing because there is not support to do with they have done with this budget not even the republican caucus. . .

wilbur ross, the commerce secretary suggested continuing on the subject of the peso. was some kind of stabilization mechanism that should be built in to the new version of nafta if that is what it is called. for free treatment -- free trade agreement. is there a need for such a thing? sec. videgaray: we are open to that. , wehere is a free market don't induce any bias into the peso. absolutely, we are very open to that. erik: and the governor of your central bank, i was told earlier today that he believes the peso remains undervalued. you sure that point of view? sec. videgaray: i share his opinion on every matter. i think certainly. erik: by the same amount? by 10%. sec. videgaray: i will follow his lead on the amount. erik: given that he is the governor of the central bank. mr. secretary, you have been to the white house how many times since inauguration day? sec. videgaray: a few times. erik: you met with president trump personally? sec. videgaray: i met with the white house senior staff. posture havend of they communicated to you on behalf of the president? sec. vi

. >> surely you'll hit the mexican peso declining 1%. >> we have a lot of things on the list.e will be breaking down what took place last night. trying to make sense of what it all means, especially when it comes to the markets. senator rob portman joins us. we have a who's who of folks from washington spending time with us. congressman kevin brady will be with us. evan bayh will be with us. jason fuhrman, i know you like jason. he will join us to talk about the economics of this. we'll have that conversation, break down some lowe's earnings. so we have a whole lot on tap. as you said, the peso, which is top of the list. >> thank you. >> that's what we have going on. >> the politics is packed into five or six minutes of the show. >> just a modicum of the conversation. all peso all the time. >> we look forward to "squawk box" in ten minutes time. >> president trump laying out his vision for reworking the tax code in the u.s. listen. >> my economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and wi

the mexican peso has been up until a few weeks ago actually. probability.h very significant kind of chart. that is coming up. a factor for bullishness. in general the economic effects have simulated economic effects, border taxes. concern is a very narrow part if they were even to have. that worry on the peso overblown.y >> overall nafta would affect markets substantially. right that orts are the trump administration will soft run, does that reinforce or that part of the reason? do you anticipate this saying ou were more bullish on the peso? >> there are many thins that we see. to wait and for now the market has been benefit of the doubt. the marketing. concern about the downside risk. coming off now. >> donald trump came in saying going to change everything. lot of bombast. they start thinking what won. donald trump would like is to be honest, that's not a big deal. and $21 billion for a wall. raoepbly.quities, i think that, again, the chance destruction that's the most important. far more important than even mexico. ecause if the u.s. and chin

>> no. >> the peso has risen given what's going on. who knew. >> and given it in series, too.given sara what she wants. in series three, i think there needs to be a big political vote in europe. >> i think they've done that in homeland -- >> they've done similar things in homeland, exactly. andrew, we're looking forward to "squawk box." >>> checking in on futures. dow futures down about 95 points. the slowing continues pretty much across the board. it's gone global, you've got safe havens like the yen and gold. jou joining us, steven wieting. by phone. >> are you surprised by last week? >> i think you can see that the futures have come off the bottom. a good deal of expectations that this would be a significant setback. are already in play last week. even the delay from thursday, created a good deal of the damage. and, you know, the question now is how fast do they regroup. what compromises are made. and is this total play? on tax reform going to be smaller in scope. >> steven, of course, the yield moves which are linked to politics. the yield moves that seemed to be a vehicle

is there further to run on the peso? >> it depends how trade negotiations go. he election of president trump there was the perception that new legislation could enact aggressive trade actions that would hurt those trade flows. that did not come to pass after today. if that is the case, if that is part of this, -- joe: great stuff great to have you on. saudi energye minister. this is bloomberg. ♪ scarlet: "what'd you miss?" president trump welcomed the saudi crown prince. opportunity to speak with trump after being shunned by former president barack obama, who crafted a nuclear deal with iran. kathleen hays sat down with the saudi energy minister. in washington among the topics on the table, the iran ipo, oil prices, and saudi arabia relations. >> we have been i was over eight decades. that relationship is important for our countries and our people. these are two leading nations, not only economically but also in terms of geopolitics, security, defense, visitrterrorism, and the gives us a chance to refresh, renew, and revise that relationship and take it to a hig

>> i think the mexican peso is definitely undervalued. in a way, the market is pricing the highest risks related to the donald trump policies. and i this is what anna were looking at this morning, which is, there is the victory moment. here is the retracement. you say there is potentially more value to come? >> if we don't get something aggressive on trade protection from the new demonstration. the mexican peso has been affected by the em rally. there are some trade protection risks. we don't expect something strong from the u.s. in this direction. i think most likely, there are still buying opportunities in the peso. thank you. some highlights from your day ahead. voters in northern ireland go to the polls today to vote for a new assembly. anna: and snap inc. makes its wall street debut later. and then we have the u.s. jobless claims. manus: coming up, we discuss the latest setback for brexit as the u.k. government loses a key vote. anna: then, we take a look at snap's ipo. from aholdhe ceo delhaize banks joined anna and i. ♪ anna: welcom

he tackles everything from nafta to the peso and export/import bank. his is on what the secretary had to say and how trade is shaping up so far under the president. now joining me on the panel today we have cnbc's senior markets commentator and pro columnist michael santoli, resident bob dillon of newmark and cnbc fast money trader guy adomi. great to have everybody on board here. mike, maybe people don't want to be short going into the weekend? >> it could be that. i mean there was a little bit of a gravitational pull all day look at the s&p 500 at 2380. why does it matter? if it matters. that is where we opened on wednesday. basically kind of soared into the opening on wednesday after the speech tuesday night and after the fed expectations and then you ran further up during the day. that's been left behind. those gains are set aside. i think the market is regrouping, figuring out exactly you have buyers at this level, the tape is stretched, everyone kind of knows that, but it was a mild test for the dip buyers. people have been saying they love to buy

, it will be good for the peso. and i want to hit on some breaking news that we got 20 minutes or so. deutsche bank is planning to boost its capital by 10 million euros. -- $10.610.6 billion million. people according to familiar with the bank plans. we are seeing the stock swing lower and german trading, but in earlier reports that some title capital raise was talked about. now we have a specific number. you so stuff, thank much. for more analysis, we are joined by the global editor of economics for bloomberg news and our senior markets editor who is working on this particular bloomberg. we are looking to the analysts and economists during yellen's speech, and one from unicredit as that perhaps the fed is getting behind the curve and that is why it feels the need to eat grilli poll for the next move. what is your thought on that? >> there is no indication from the chair that she feel that way. ae offered through the speech fairly robust defense of where they have been, where they are now, and where they see they are

alix: if we do get that tax, it could put pressure on the peso which will exacerbate the issue we areng about anyway. david: which you brought up, the weakness of the peso. he already said we are in a trade war, we have just been losing. we are going to put our troops on their border instead of them coming to us. very interesting. jonathan: this is what i understand, these guys are businessman, they will to you they want simplicity, less regulation. in speak to chief executives the united states and they say they don't get the border adjustment tax, it is too complicated. when you consider that and how many debates we have to have on this table every day about this particular policy, doesn't that just tell you it is not worth it? david: i don't want to oversimplify it, but i tell you would make him down to one man -- may come down to one man and that is paul ryan. he really believes in this end is really pushing it and it is difficult for the president to get done what he wants to get done without paul ryan. alix: we will be tracking it. joining us now, barry bannister, the chief equi

erik: what is the market telling us by revaluing the peso as much as it has since inauguration day? engthened by 14% and is now at $19 until -- instead -- 22 to the dollar. mr. summers: to some extent that is -- too broad, global trend. -- wether sense, it is may find a pragmatic way through these difficulties and if that is true and if the market is right in that judgment, that would certainly be very welcome news. all of us who raise alarming prospects take no joy in a negative outcome. we raise them precisely in the hope that they will be self-denying rather than self-fulfilling prophecies and encourage cool heads on both sides to find pragmatic ways through. mr. summers: does max --erik: does mexico have any leverage at the bargaining table here? mr. summers: mexico does have important leverage. back from theing united states to mexico. the important immigration issue, the larger one is central american and that depends on what mexico does about its own border to the south and we've in a cooperative relationship so we can address that issue. even more important, at a time when dr

>> what i can tell you is that just the talk of these issues made the peso very, very volatile. 've gone through one of the most volatile periods in the exchange rate. >> since the '90s. >> 2009 crisis and the mid '90s. it certainly is an issue that has investors worried enough. >> are you worried? >> well, we have to be occupied and worried at the same time about this issue. >> yeah. i'm sure you're getting a lot of questions about it here. >> yes. yes, we are. yes, we are. >> jose gonzalez anaya, ceo of pemex. >> thanks for inviting me. >> we are not done yet. coming up in a few minutes, another big exclusive interview, bob dudley, ceo of bp. we'll talk more about the global oil markets. lots to do. you're watching "power lunch." we'll be back right after this. ♪ across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thr

the mexican peso is undervalued and still has room to run. s according to the country's central bank governor who spoke to bloomberg from the sidelines of a banking conference. >> even the other fundamentals of the mexican economy, i think the peso is still undervalued. >> by how much? >> it depends on different models. >> the one you like, let's say. >> i look into several models at the same time. >> are we talking about 5%, 10%? 10% but stilln undervalued. guy: in some ways, the ultimate trump indicator, the mexican peso. it has been an amazing round-trip in so many ways. let's talk about emerging markets. you talked about the impact that you think and overvalued dollar is going to have. the emerging markets in some ways should be the play on this. yogesh: we like emerging markets. they are of around 12% year-to-date. they have benefited from volatility in the u.s. dollar. it is the domestic story. we've also got above trend gdp growth that we are seeing in the emerging markets too. if you are of the view the u.s. dollar is going to weaken,

yousef: i'm looking at the w crf function in you have the peso performing in the returns, how do youde that? guest: you start looking particularly out the south african rand, there is already a lot of bad news in the price. we prefer to be a bit more defensive. japan.ore at the ajax they have good stories. brazil more for us is a possible story with interest rates coming down. we are just big little more defensive at the moment. yousef: steve brice, thank you for coming on the program. good to have you in dubai for a change. you can watch the interview again on tv . watch previous interviews and dive into the bloomberg functions we talk about. if you agree or disagree come you could just let us know. you can see some of the functions we have been using. all the key codes are in there. david: solid function. coming up, emirates tries to minimize the impact of laptop restrictions on passengers. this is bloomberg. ♪ >> airlines came under pressure from the travel orders are now reeling from new restrictions on mobile devices on fights to the u.s. and u.k. at airspacerofessor and bob

the peso gaining. a fair amount of risk appetite as we wrap up this week. >> not too bad for our friday. a week that saw a roller coaster ride when it comes to equities. we see a comeback in australian stocks. 200 up 1% -- asx 200 up 1%. the week losses there. kospi down onethe third of 1%. take a look at what is going on. we're seeing the dollar strength pick up somewhat. bankas we do have the fed president seeing three rate hikes. we are anticipating that health care bill vote in the u.s. friday. around thethe peso 50 mark falling after the central bank left rates unchanged this week. they were in the lowest level in about a decade. currency move through, adjusting that and maybe undervalued. saw theri lanka we first hike in key interest rate since july. this has contained inflation. take a look at some movers in asia today. -- hashave has linda linda point out. effissimo capital was the top shareholder. they have invested it in an undervalued japanese company. today we are also expecting earnings ou

when the peso line goes down looking at chart, trading higher, less pesos to buy a doll arela. at means. that is my checks taught me. neil: i like how you dot down direction, it helps me follow it. >> then there's the bond which -- neil: that is very interesting. >> look at the yields. yields are going down, prices are going up. people -- neil: bond market is telegraphing slowdown? >> peso is telegraphing the trump economic plan which involves getting rid of nafta which is not getting off of the ground. stocks are off today major. listen, yesterday was not a great day for the country and i'll tell you why. not because jim comey dropped any bombshell on us about, that there was a president who was wiretapped. because just the opposite. neil: he also confirmed an investigation some fear could be protracted. >> i think most people feel that investigation may not turn up much other than trump advisors talking to russians who were under surveillance. the real problem it underscored whatever donald trump tweeted out that day was either insane or a lie. neil: you're talking about alleg

the mexican peso is the best-performing currency versus the dollar after comments by wilbur ross, sayingeso afterrecover quite a lot nafta renegotiation. it has been a big recovery since depreciating to a record low. also sitting around its 200 day moving average, so it might be stuck here a bit. joe: gold and oil up a little bit. cold catching a slight bit, oil up 1%. let's look at a one-month chart of gold. you can see the reversal. it had been higher, selling off lately on this general safety trait selloff, the same reason treasuries are selling off. those are today's market minutes. we want to take a deep dive into the bloomberg. at the most at miserable countries according to the misery index. it is calculated by adding inflation and unemployment forecast. the higher the score, the more miserable a country is. venezuela is leading emerging south africahere and argentina increasing in misery. greece up there as well. they are still trying to figure out the next tranche of their imf bailout. misery numbers are based on specific statistics. it is a nice way of looking at it. let's look

the peso strengthened after the decision which left further hikes on the table. 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins, this is bloomberg. owner fastlo retailing considering its future in the united states. a lot of that is down to donald trump's demands that more products be produced locally or face a hefty border adjustment tax. a lot aboutat knows the retail industry and how tough it can be here, we have the former ceo of tumi among other companies. now in the studio. joe, so good to see you again. do you believe the ceo of fast retailing when he says i want to , or ist because of trump it because he is having a hard time here? joe: he said if he was forced to manufacture in the united states. i do not think anyone will influence that decision. trump is talking about a border tax. he would like to see people here produce in the united states. thelikelihood of that in apparel and footwear and accessory industry is not likely. is having a tough time in the u.s.. joe: what do they do wel

i'm looking at the mexican peso. our commerce secretary moved it by 2%. d about having a sensible arrangement in terms of trade with mexico. we see the mexican peso below 20. he has been in the market and talking up the pace out. the canadian dollar, maybe next time the secretary needs to talk about canada trade deals. the canadian dollar is weak or. weaker.- is yields higher and in interest-rate increase. the two-year and 10-year back up above 2.51%. let's look at the movers in the u.s. major indices are lower. not much happening before janet yellen speaks at 1:00. the vice chair is speaking at 12:30. 65.60 aude above barrel. abigail? abigail: all eyes are on the fed yellen chair janet speaking at 1:00 in chicago. we'll be looking at if the fed will raise rates at the march 15 meeting. 6347.s g #btv in blue, world interest-rate probability that a 25 basis point hike will happen in march. a week ago 40%, a month ago 20%, now 90%. very close to 100%. the december 2016 rate hike in in a decade. investors think this'll happen. volatility also showing in the 1

haveexican billionaires performed the worst, mainly due to the crush of the peso which has happened since chinese billionaires have done the best and we have seen a huge spike in fortunes, mainly in the companies that mimic ups and fedex, parcel delivery companies . the biggest gainer so far on the , ss express, the biggest delivery service in china. vonnie: we update it every day which means there must be some news. robert: we did a story on carlos slim, the biggest monetary loser since the donald trump election, losing about $16 billion since trump announced he would run for president. he used to be the richest person in the world. we did a story on the parcel delivery guys in the various ways fortunes are moving around the globe. are doing while we this, what does it mean in the context of markets, business, and economics? robert: he went through the exercise as we were going through this expansion, what are the brands associated with these people in the top 500? everything we all do every day touches something that a billionaire has control of, whether it is the google searches you do

the mexican peso, the brazilian reality, the russian ruble.we will continue to do well in a world where commodities are stabilized and the fed is measured. worah,thanks to mihir with pimco, joining us from newport beach, california. let's take a look at where european markets are trading as we head towards the close. " her and of the month. the stoxx 600 up .2%, it was a little lower, seeing some weakness in the ftse 100 off by .3%. the dax is higher. we are on track for the best march since 2010 for european equities. take a look at what happening in the fx market. up .4%. that .4% -- we are keeping an eye on south africa's currency, 30, 40 on the rand. 10 year yield and the u.k. up up basis point and the rand two basis points. this is bloomberg. ♪ ♪ live from london and new york, this is the european close. i'm nejra cehic with vonnie quinn. stocks finishing up the trading day, the quarter, and the month in european trading. with yourross asset jim n function, you can see a little bit of a mixed picture on specific equity hash marks. the fts

the peso had been stronger, approaching 19 earlier in the day..,-year yield in the 2.50, a little bit of selling. the two-year at 1.31. that three-month creeping up all the time. i want to china the china renminbi. we have erased almost all of those gains. sitting at six point8996. really no spread between the two anymore. at least for now. 53.15.ude if we look at the major averages, we can see what is going on there. across the board for the nasdaq, russell 2000, 3000, and the s&p 500 down half a percent. airlines dragging on the s&p 500 today. ofing up, kkr's head acquisition business alex navab sits down with erik schatzker to talk about a private equity fund that has just been raised. this is bloomberg. ♪ ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow inter

trump's rhetoric which has played into preexisting economic weaks in mexico to generate lapse of the peso. the shock of being disrespect and treated as -- while this new mexican nationalism is not anti-americanism in the past, the profoundly anti-trump and it's unlikely to weigh in any time. mexico is reminded that united states is greatest potential ally and adversary. people ask if -- referring to the left leaning candidate. my answer is i have no idea in he is going to win. he is well positioned but whoever is next president will be a nationalist. whether he or she is elected. it's because the centimeant of the elect rate. -- this reflects corruption -- it reflects rising crime rate and despite promises has not turned into high gear -- which revived a fear of inflation amongst mexican consumers. in this context, being seen as given into american demands or not protecting the interests of mexicans living in united states would be political suicide. what does this mean for the court issue and thus the border. let me take the issues one at a time. start with security. this is the year by

pound against the dollar while the peso and japanese yen or weaker against the greenback this morningield on the 10 year treasury, 2.5% this morning. nicole: another high-level executive has left uber. jeff jones joined six months ago from target. he was president of the rideshare program responsible for customer support. jones announced he was leaving after uber's ceo travis kalanick was looking for a chief operating officer to help and guide the company. several high-level executives have left recently and has been hit by several controversies including allegations that he routinely ignore sexual harassment. lauren: a beast of a weekend at the box office. >> we must leave here. >> who's there? come into the light? lauren: disney's live-action remake of the famous tale opened with a monstrous $170 million, making it the biggest opener for march in the seventh highest grossing film of all time. dropping to the number two spot, kong skull island bringing in around $29 million. takes third place with 18 million followed by the horror film cap out with $13 million in rounding out the top

. >> last week you moved the peso when you argued that a trade deal between the united states and mexicop being good for that currency. did the market take your comments right? >> well, my purpose is not to manipulate currencies. that's a very hotbed issue. and responsibility for determining whether somebody is manipulating currency really belongs to treasury, not to commerce. but my point was that fixing nafta is not all going to be burdens on mexico. there's going to be some very good aspects of it that come out. and we're just trying to deal with the marginal benefit to the u.s. of correcting some of the original flaws in nafta and even more so building upon it to create new opportunities for american business and reduction in our trade deficit. >> i'm glad carl brought this up. it's an important issue and i don't think that people have a lot of clarity on where the white house is. with so much of your focus on trade and getting exports back up and deficits down, is the strong dollar hurting your efforts? is that standing in the way? is it a problem? >> it's not so much that the dolla

so the peso strengthening and moving beyond its 200 day moving average for those who are keeping trackchnical levels. joe: on commodities, everything is green across the board. , gold surging up 1.5%. crude oil has been getting clobbered lately, up 2.3%. scarlet: those are today's market minutes. we have some breaking news, gopro is cutting jobs. seescutting 270 jobs and first-quarter revenue at the high end of the forecast. restructuring charges of up to $10 million. it is cutting jobs in a bid to return to profitability, or to make a profit. cuts,nd round of job eliminating 270 positions after cutting 15% of jobs in 2016. operating expenses this year will be about 18% lower. we also have earnings out from oracle. third quarter adjusted revenue, $9.27 billion. analysts were looking for nine point $26 billion come so just a hair higher than what analysts were looking for. $.69 was what it reported for last year. analysts are looking for $.62. the adjusted operating margin is 43% as well. 2.4%e shares gaining about and we will bring you analysis of those results with cory johnson later

the mexican peso has been the big outperforming.urprising given me -- the swing against it. ruble, the south korea, the aussie has done well as well. only the turkish lira that has generated negative returns against the u.s. dollar. it has been a difficult period for the turkish central bank to manage. the senior advisor with credit suisse is still with us. if you get the dollar right, you get everything right. how many people got the dollar wrong this quarter? bob: a lot of people since we started quarter. there was a clear consensus in foreign exchange markets that the fed would raise rates. that was correct. theconsensus is still that fed will raise rates another two times this year. they may raise rates three times this year. we have the statement from one of the fed governors earlier this week suggesting four rate increases in this year being appropriate. we shouldn't dismiss that. but it was a clear consensus pro the dollar and that consensus has been unwound. what you have seen particularly some of the emerging currencies per

. -- the peso, 19.03. guy: any to think about how markets are set up. we have been talking about what is happening on the hill and how health care will affect the future of this administration. waiting and watching, trying to get a clear idea. in terms of the cable rates, sales data will have a bigger effect beyond yesterday's terror attack. the muscle memory is you do not trade terror attacks. it did ripple possibly into what is happening in france. it is interesting how mr. macron reacted. tom: here's the polls of the american confidence. the optimism of the 1990's, the bloomberg consumer comfort index. here is the challenge, the great recovery, you wonder where this will be in three months or six months given the legislation and distraction the president faces in 10. guy: i want to talk about ireland. -- about iron or. -- iron ore. barclays is talking about this significantlyng broken, taking us down in the short term to 70 and possibly dropping to 50. two things could be affected. formining sector, look stocks like rios sent out to react significantl

the first 250,000 pesos will not be taxed. tax reform the philippines went through was in 1998. we have to update our text tables since they have been overtaken by inflation. we are also part of that package. to increaseis our tax stake. we are doing that by updating the taxes on fuel. our taxes were set in 1998. also the tax on automobiles. we need the funds because we are going on a big infrastructure push. the only way to really finance basis is toonsible improve our tax collections. aside from the tax bills we have pushed, we are also pushing very hard on tax collections. taxave gone after very big evaders. are veryeams successful in gathering the evidence of tax evasion. >> on the domestic front, we don't know who the next central-bank governor is going to be. he will finish his six-year term in july. normally we would know. what is holding it up? i know that you have a say. can you give us some insight right here on bloomberg television? [laughter] carlos: yes, it you listen to my first choice which i announced last octo

pondered the mexican peso stronger against the u.s. dollar. lauren: the 10 year treasury yield lowest since february. trade to amazon.com plans for a store with no cashier had run into some technical difficulties. the amazon does store in the company's hometown of seattle is supposed to use cameras and sensors, watch the customers ,-com,-com ma track with a pickup and automatically charge them. sounds easy. i've encountered some problems tracking more than 20 people in the store at one time. the plan at the end of the month has been delayed while the bugs are worked out. amazon also announcing it is by soaked.com, a middle eastern online retailer valued at $1 billion. lauren: we are watching today, jumping about 4% in after-hours after the the latest earnings from the parent company of olive garden in longhorn steakhouse predicts that patients. also slightly raising its earnings for the full year. red hat shares rallied 5% after the bell. investors snapping up shares after the forecast the street estimate and impose tighter than expected reven

the biggest winner is the peso so far this year, up 11%. ained fairly weak on a longer-term basis, but it gives you a sense of how things turned around. on the commodities front, let's look at oil and gold intraday, not a lot of action, but oil creeping higher. almost at 51 barrels -- $51 a barrel. let's look at the one month of texas crude. it shows the big stories, the diver earlier in the month. people were wondering if it was the start of something deeper, but now recovery. scarlet: it has been a saggy month. those are the market minister let's deep dive into the bloomberg. you can find the charts using the function at the bottom of the screen. let's go back to south africa, asset prices are tumbling overall, whether it is bank stocks, bonds, the currency. this is how it might look for the rant one month after -- rand one month after. last june, we saw high volatility reach 25%. to home,ve a closer major cabinet reshuffle, questions about whether zuma can stay in power, and also doubts about investment grade credit rating. you can see it

move in the peso, out to 22. continue this morning to come in on peso with a vengeance. what does that mean for emerging markets? is it about tax reform and the wall? there is a mixture of things. the pessimism around after the and prospects for the protections from the u.s. were massively overdone. we can see a path to a nafta deal that is may be a win-win for everyone. there is a mexican issue, which may have further to run. by qe fromds are cap the ecb and the bank of japan. the u.s. situation where it doesn't feel like yields are out of control. francine: thank you. he stays with us. .e have exclusive interviews today, charles evans. wednesday, eric rosengren. coming up next, we go to kuwait. we have about half a dozen nations saying more time is needed to drain swollen stockpiles. our person on the ground has been speaking with the russian and kuwait energy ministers. this is bloomberg. ♪ francine: "bloomberg ." russia wants more information before extending an oil supply cut. the russian energy minister spo

how, we have to talk about big a deal the peso has been in terms of the frame.e canadian side, getting pretty strong relative to history here. how does the canadian government view the currency element within this entire conversation? josh: we have seen both the dollar and equity markets, canada marching in step with the u.s. since donald trump selection. investors are betting candidate will be exempt. the whole message of the canadian group is it is difficult for donald trump to break out his scalpel and do whatever surgery he wants to do to nafta without hurting canada. the broader issue for canada is the dollar does move in oil. oil goes down, so does the canadian dollar relative to the u.s. dollar. oil is one of the top exports from canada to the u.s., the number one supplier. not only nafta, but when you talk about paul ryan sported tax proposal, there is a lot of ways canada can get hit and canadian oil producers can get hit when it comes to u.s. exports. all that will be reflected through the dollar. oliver: with the numbers with the u.s. trade deficit. a

economically by trump's nafta rhetoric which play knos into t weakness in mexico to underhe li mine the peso and undermine consumer confidence and cause anemic growth and job creation. the shock of being disrespected and treated once again as an underling kpro provides a latent string of nationalism. while this is not as anti-american as in the past but it profoundly felt and profoundly anti-trump and unlikely to wane any time soon. mexicans have been reminded that the united states is its one greatest potential ally and -- my answer is i have no idea if he will win. he is well positioned. and it's unclear that he will win. but what is clear to me that whoever is the next president of mexico will be a nationalist. whether he or she is elected. simply because that's a sentiment of the electorate so politicians are playing into that. into this mix of u.s. coercion and mexican nationalist response we have to add the profound weakne weakness the president. with popular approval at 12% he is the most unpopular mexican president since we have measured such things. this reflects corruption in his a

the peso seems to be relatively stable. are something things you can do it high yields. been onerally, risk has the back burner for stimulus. don't get to carried away. you can it have part of a portfolio. that's the way we think about it certainly. francine: are we underestimating the risk of a full-blown trade war? market willnk the get over that. my feeling is we won't see anything full-blown. i do think somewhere like mexico you could see pressure there. wasainly the peso which 18.30 or something like that and then went up to 22. it has taken out that sort of real sort of big bang against mexico. it's been depreciating since mid-2013 by 12% year. i think it's on track. i don't see much value. francine: does this also carried to japan? mike: we would say you need to lookat those, the ones we get have more correlation to a stable commodity price. that put you in some parts of latin america and things like the ruble. there is liquidity. liquidity is relatively good. when we think about emerging markets and other riskier as

if you go to the chart that you saw, the peso is gaining enormously. telling us that the yield seeking behaviors coming back to the markets. i think the aussie have been pushed down because they were selling a low guilders and go back into the dollar. we saw ar that -- the whopping 38% improvement in imports. whether the market likes it or not, aussie alongside with it. anna: what is the other thing that would lead you to believe to see in and to the predictions around the chinese currency? >> there is always going to be a segment that think the end of the world for china. same way that there is a doomsday for the u.s. iran are reading a paper in the early 90's where that was -- the u.s. economy could never survive the twin deficits. you're always going to find weakness in the chinese economy. to make a grown economy that will continue to do well. manus: thank you so much. this, going to check out 12155. the plan is getting smacked. stocks are being triggered. they are not sure there is a huge amount of liquidity over at convictions. the latter is the i