this morning at the wto, wto i announced we had filed a case against china for artificially cheap loans from banks and priced inputs for chinese aluminum area that case to be made is that those cheap loans and low price inputs are contributing to access global capacity and undercutting american workers and businesses. today's action follows numerous bilateral efforts by the obama administration to persuade china to take strong steps to address the excess capacity situation in its aluminum sector. those of you who have been following along know this is the 16th trade enforcement challenge the obama administration has launched against mine by the wto. it's a demonstration of our commitment to hold china to its trade obligations. of course the incoming administration has spoken forcefully about their commitment to standing up for the united states when it comes to global trade. the incoming administration has suggested they will administrate consider imposing high tariffs and build a wall in ways that economists have said would be damaging to workers, us workers, bad for us businesses, bad

it may have to go back to the wto.ying was, if you are outside the club, you are not going to get as good a deal as if you were inside the club. no one wants to give britain such a good deal. i wonder what you think of the idea — we've already heard of some companies like ubs shifting to paris and beyond. certain different areas, such as financial services and the car industry, might strike separate deals within the eu. what do you think of that? there will be no separate deal. it's a single undertaking. you have to to agree on everything before you agree on anything. and there's no deal which would be a sector deal. this will be toughly negotiated on both sides. as you just said in your programme, the main difficulty for the british exporter to the eu continent, whether goods or services, like financial services or accounting, will be that the uk will have to match eu regulations and standards, without having any say on the regulations and standards. that's a big problem for the future. 0n the question of how all this

think the wto today more than ever is important. i think that the notion that you can live in a world today without global rules, without multilateral rules, it's a disaster. >> is it a valid threat to step away? >> i have not heard that threat. >> if he did threaten you -- >> if -- that's a big if. >> of course. >> it did not happen yet. i will not speculate on what's going to happen. let's see what the trade policy is. you have to give them credit that they will think about it and take measures that are consistent with the u.s. interests. we have to wait for that. at this point we would be speculating on that. >> thank you very much. some quite tough questions there. we have to wait and see. the director general of the world trade organization. coming up after the break, we'll speak to the next group of ceos, talking about brexit, getting market reaction, and ultimately what is this going to mean for the city going forward. back to you. >> thank you for now. we do need to take a little bit of a break, short break. while we're on t

in the position i have heard, donald trump we should not going to negotiation, we should go to the wtope or asia. are you effectively saying that the american people and the white house don't really understand the kind of contribution that mexico makes to the american economy and to american jobs? and that a failure to understand how important mexico is to american jobs and american workers could cause a huge problem? just for instance, just as an example, arizona, estate on the border sends 40% of their exports to mexico directly. we are the second x for parliament to the us. as i said $500 billion are generated because of nafta so we have a dynamic situation, a dynamic benefit between the two countries and i think that isa the two countries and i think that is a narrative that we must keep working on. a lot of people in the united states like mexico,, donald trump doesn't know exactly and has no information about the benefits of trading with mexico, which benefits are generated and especially i must stress against the security issue. we ta ke stress against the security issue. we tak

happens under wto rules.ree a free trade agreement isn‘t a good thing by virtue. where i would disawe greed is the idea we can fall back on to wto terms and it will be fine. if we are to leave the single market and to have a new trade trade arrangement with the european union, we need to give it the time it needs and the time it requires to make the best of it. if that requires transitional arrangements so be it. that‘s a good idea. transitional arrangements so be it. that's a good idea. liam, it's going to work, it will work? look, there are still big dangers facing the british economy. the western world is addicted to printed money. there is addicted to printed money. there is still, you know, we have got a protectionist coming into the white house. all these things are causes for concern. all these things could rile financial markets in the next few months and years, but i really don't think brexit is a blot on the british economic landscape. we need to get beyond the sense that we need to get beyond the s

but i don't think the balancing is nearly the same bin also being litigated in wto. lot of countries including this one if you are allocating capital in one form or another to specific areas in order to achieve dead-end we cannot do that. but i am talking about how is all the upper you are talking about things that our new or fairly new it is not going to go away. >> but to have an idea of what is going on. >> but then you have release level of playing field. >> i am conscious of time and for you to give me thoughts and questions. i have never russian. >> while you are thinking about a cushioned by it haven't asked the aspects of what are in tpp and a what is at stake. i think if you put in another format these things are clearly critical to national interest one way or another we will have to find her way back to rulemaking in these areas. i thinking we need something like 80 ppv in chile because the optimistic position but not necessarily in the time never rest. >> is there any reason to believe we will come back to implement pacific's but he got in the l. webb fla

that is the precursor to the wto.mbers are now a member of the body, with china joining in 2001. there is the argument. trade has raised living standards and has allowed many poor countries to close the gap on rich ones. consumers have a broader range of goods and in multi-nations, cheap imports road down the cost of basic items. even so, the benefits can be harder to see and opponents it undermines social and economic impacts of free trade. retrain displaced workers does that make up for lost earnings, they say. making opposition to free trade a rallying cry for champions of the middle class. you can read more about trade on the bloomberg. that is your global business report. david: james madison orders a review of the f-35 program in the air horse. that is according to our colleague who covers the defense department. ordering a review of the f-35 and air force one programs. continuing coverage of that through the afternn as the presidentwi be going to the pentagon after his press conference. he will be going in for

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sharyl: wto is the world trade organization. prof. morici: correct.na cheats on its commitments to the world trade organization in a manner that costs america about 2 million to 3 million jobs. sharyl: in short order, what do you think president obama has done right and what has he done wrong, if anything, related to china? porf. morici: he has enabled china and that's the problem. he stood by while china built the islands in the south china sea and what are supposed to be neutral waters, militarized them, intimidated their neighbors, and we've lost face with allies like the philippines. in addition, he has tried to make china back down on currency and trade issues, but when the chinese stand firm, he's flinched. so, by and large, it's been a policy of appeasement and this hasn't served american interests well. sharyl: what do you see as president trump's biggest challenge coming in? prof. morici: well, you can't do anything about china without offending somebody in america. if you clamp down on chinese investment coming in the united states to free u

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no one can reasonably deny that china's joining the wto has brought about enormous benefits for china overall the rest of the world. having china inside the global rules-based system will always be preferable to having them outside it. china's wto membership has brought great benefits and opportunities for consumers and companies around the world, including fedex. it's also propelled dramatic economic growth and change in china. let me know that fedex strongly advocated china's entry into the wto, it was the right call then and it still is today. but it's important to note there are tradeoffs and maybe people here have been hurt by china's economic rise, especially in the manufacturing sector. when we talk about the manufacturing issue it's important to note that not all our problems can be claimed on china. much of the u.s. decline in manufacturing employment is due to automation and productivity improvements. even so u.s. manufacturing output was more than $2 trillion in 2015. we make things today with fewer people and that will continue into the future. in addition it's important t

we have had 25 cases of wto, more than any country. >> i think of the other question i just raised it as a question. if you take issues like raising tariffs on imports, you will see countries potentially retaliate against them for doing something that's clearly illegal. you will see countries potentially imitate us and we will find ourselves at the other end of the stick where export industries and the jobs they support are put at risk because other countries are raising their tariffs and then of course it terrifies a tax. it's a tax on the part of our society who are the least able to afford it. the council of economic advisers put out a study yesterday looking at the request of the impressive nature of tariffs and how it's the lowest quintile of income, low income americans who paid disproportionately for tariffs or you are hurting the people who you most want to help in society. for all those reasons you have to take a step and think through all the secondary and tertiary issues. >> in the second row, why do you stand up so we can see you. stand up, please. >> thank you mr. froman.

operates within the wto system.of his economic team indicates precisely that they want to operate more aggressively within the wto. they're absolutely right and are going to move away from ultimate lateral discussions to bilateral with some key countries like china and mexico. there are risks to that strategy, but i think ultimately it is something that can work as long as it operates within the existing rules of the game. jonathan: you listen any talks about the u.s. opening things up for other people. tom barrett came on the other week. the postwar international order and the infrastructure around it , things like the wto born out of all this, it's a bit of an an attack on those institutions and a reworking of that. i wonder what the consequences really are if we do go down that road. richard: sometimes talk is cheap and it's easy to bash an institution. to get back to the dub eto in particular, what's important within the wto is that there's a dispute settlement process, which means there's a set of rules where a

join china's campaign to th the wto. the u.s.na as a currency manipulator and said unless you reform the exchange rate, we will not support your effort to join the wto. that was a big stick, and it did work. china did reform and change their exchange rate system, making it easier to buy foreign currency. larry summers at the time said that was their biggest weapon to use against the china. 1994, the u.s. lifted the manipulator tag. not anme around there is easily identifiable caret they can dangle for china. rishaad: the chinese economy is different the 1994. the key is that it is not as export orientated. manufacturing sector is very important there, but we know that we are seeing an ever bigger role for services, consumption driving growth, services now bigger than manufacturing, so there is a view that if the u.s. wants to widerd that perhaps the economic impact would not be what it would have been 20 years ago. whyaad: so the question is don't they support new tariffs on china? do u.s. consumers want to pay more for their goo

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we trade with the united states, we can work on wto rules, we trade with the us under those rules andy that the wii and adequate position to be in. whether that is true or not is another issue. this strange story in a mail on sunday, the royal plot to take down tory minister. it is all based on something going on in a restaurant. apparently, the target was very un—keen on the things that sir alec duncan has been saying and it is a strange one, isn't it? a little bit is that all cattle over the dinner table. —— titled cattle. we don't have any independent view of the commons. she will be asked questions of what she actually said. her comment at the end is it was purely a social meeting with the israeli official and it wasjust chatting about politics, many years people do it. one thing important thing is that this evening, the israeli ambassador to london has apologised for the comment made other deputy during down this alan duncan. it is a tremendous tory because it revealed that his ology eyes for this contact, suggesting they should take down the second most senior minister in the fo

i think we are having an interesting conversation go about the wto what new issues might be put on the agenda and issues like e-commerce in the digital economy are certainly among those, so i think that's going to be critically important and i think the other thing that we need to be focused on is more of a domestic issue than an international one, the whole area of how to prepare the american public for a rapidly changing economy a lot of what we saw in this last election weree peoples quite real and legitimate economic anxiety about the rapidity of change plus wage stagnation, incoming call-- inequality and a lot of anger rooted in quite fundamental economic and technological development. people talk about trade, displacing jobs and we can have that debate and most economists would agree that upwards of 80% or even higher ofar any job displacement is due to technology, not to globalization, but those of you that have been talking to the technology community know we really just see the tip of the expert onnow we that and when you start thinking about artificial intelligence, 3d printi

the worst position, which would be a wto solution. and tariffs. can interrupt you?d therefore if things turn out a little bit better, if there is a middle ground between where the eu are and where the prime minister and britain is, things may improve from the lower level, but companies are doing their content in the planning and will be planning on that basis. and eating out of london may be?l ha rd and eating out of london may be?l hard rex at as you suggest. —— meeting out of london may be? a hard brexit, as you suggest, and it isn't clear what sort of brexit check that we will have on a couple of years but we will see that more in due course. people out of london, always a possibility! always a possibility. don't give me a hard time for not coming to your studio! it is very cold and very early and very unfair! i wouldn't dream of it! i appreciate you getting out of bed so early from your beautiful hotel in davos. go back there and get a hot chocolate. see you soon. that was sir martin sorrell, the boss of wpp. we will be back in a moment to have a look at the pap

now with all the speculation to opt out of protectionism come the wto says a new accord will boost global exports by $1 trillion. jordan chat in kuwait ratified the equation -- ratified the agreement and are expected to come into force within two weeks. the agreement will have major impacts on four countries as it standardizes and expedites the procedures. it means faster and cheaper delivery. >> an agreement has been put into place and will have the largest impact. implemented, this could have an impact of around everyn trade expansion year until 2030. and half a percentage point of world.wth around the anchor: finally, for those of you who love the smell of napalm you may soon be able to experience apocalypse now in a way you never have before. videogame. gamers take on the character of the u.s. army captain willard, who is on a secret mission to assassinate renegade colonel .urtz francis ford coppola is developing this interactive psychological videogame based on his epic vietnam war film and he is asking the public to contribute $900,000 for its production. vietnameseinto the -- i dov

people can see that there is a worst—case scenario where we just walk away with no deal, we go back to wtod everybody else. they are not brilliant. the tariffs, as they keep telling us, will be cancelled out by the fall in the value of sterling for our exporters. there are all sorts of things like financial passporting in the city of london, but people are how the city of london, but people are now seeing that theresa may has now raised that, this is the prospect, we might have to walk away if our partners would do a deal. and the markets have not fallen, employment is ok, economic growth went up in the second half of last year. people are not feeling the brexit disaster. my are not feeling the brexit disaster. my feeling is we have all got to calm down the rhetoric, that remainers should not make everything a catastrophe, there has got to be a middle way. and also, i am not a remoaner! this threat of walking away is what the 48 worried about, because theresa may said, at the beginning of a speech, i am going to protect workers' rights, but, at the end, if we don't get a deal, we will walk

sorry, what was the story with the wto?igh in on this sort of thing or can the u.s. make this agreement unilaterally? really don't know exactly how it would work, but i'm assuming the wto is ratified in the nafta agreement. the dealsgned off on in europe. on assuming it is the same sort of policy situations that as you know already, we see from president trump, he will say something and then may well sign it off. whether he can get that through congress, i really have absolutely no idea. duncan, thank you very much indeed. duncan fox joining us from bloomberg intelligence on what matt'sening with some of favorite ingredients. my producer tells me avocados have started getting tree per year -- getting cheaper here. , right before i left new york, i tended to go to chipotle every day for lunch since the crisis, and the aptly had run out of avocados. the salad bar had also run out of avocados. there was a real issue with a shortage there. maybe this tariff would help to ration that very important and healthy lunch stable. stap

of course they're disenchanted with nafta, of course they're disenchanted with the wto, of course they'rechanted with the trade agreements and everything happening and the loss of jobs. >> reporter: danny glover so pass nation. an an andy shalal who started the peace ball when president obama was elected, we asked him how it paired between the first and second. he said you know what? it's amazing because we're here at the national museum of african-american history and culture. just a fun and exciting night. back to you. >> thank you, kristin. >>> the virginia republican party teamed up with several other groups for the all american inaugural ball. organizers tell us this party is an opportunity for trump supporters to celebrate the president-elect and to honor our military veterans, law enforcement and first responders, that includes heroes in the commonwealth and around the country. guests danced the night away at the hyatt regency capitol hill in northwest. >>> security measures for tomorrow's historic event are in place on land, over water and in the air. right now more than a hundred

, resorting to wto rules, which would be disastrous in terms of tariffs and nontariff barriers that itcted you to vote in this way? i thinkjeremy has made the right call on this one. it's important that the nation sees what the opinion of our leadership and our shadow cabinet is on this, which is, after all, one of the most important issues we have debated in generations. i do think we have to set out the view of the party as it stands. but i fully respect those collea g u es stands. but i fully respect those colleagues of mine who do not feel that they can go with the three line whip tomorrow evening, and that is absolutely understandable. but we as absolutely understandable. but we as a party have made our view clear. we won't frustrate or subvert the process. but we are going to ensure that this prime minister doesn't lead us down the road of a train crash brexit that would wreck the british economy, undercut the welfare state, causing bonfire of the rights that we have worked so ha rd to the rights that we have worked so hard to achieve. we will not allow her to turn the uk into a

if it is not possible then fine, we go to wto and she referred to that today and said no deal is betternd of wto arrangement. we have got to look at other positives, many other countries want to start negotiating with us now to get agreements lined up with us now to get agreements lined up so we with us now to get agreements lined up so we can with us now to get agreements lined up so we can find them the day after we have left. the us, our biggest single export partner, want a deal donein single export partner, want a deal done in the first 90 days of the tenure of the new president. it is important that the department of william fox, the foreign office, they get to grips with the huge opportunity and that will help our negotiating leverage with the uk —— with the eu. how do you square the notion of an outward looking, global uk with the wish to have far more rigorous controls on immigration, which people say signal something other than a global perspective. all you're doing is going back to what happened before 200a. we have always welcomed immigration of people with the skills that t

wto or market manipulation law that way when we are collecting the evidence it is not subjective. you are looking for evidence that matches precedence, precedence of cases that made our courts as well as wto and looking for leading indicators of something that is about to happen or trailing indicators of something that has happened. ientioned in my written testimony that for the most part a lot of evidence that we will present will link back to barriers to entry, anti-dumping, subsidies, counter veiling measures and then we have u.s. laws for market manipulation and fraud. that kind of sets the tone for how we go in and collect the evidence and make predictions. now, in terms of our own laws you will note in my written testimony that i recommend that a lot of times it's just following what we have. we have a lot of great laws in place. because we are stove piped in the way that we are looking at the issue and sometimes we fight our own instinks on what is happening we don't necessarily apply the laws the way that we might to optimize them. sometimes we apply biases to a case which

one of the reasons is because of unequal treatment of income tax by wto. that is why a border adjustable tax is right front and center on the hill for sdrugz. somehow that has to be dealt with. the second problem is cheating by countries like china of steel and alum income into our markets, putting people out of work in ohio and pennsylvania, west virginia. that has to be dealt with. and then more broadly what we need to focus on is rebuilding and reenergizing not just our manufacturing assembly plants here with logos like ford and gm but the supply chain to provide components so that we are not just assembling things with foreign components. >> you brought up the border adjustment tax at the cornerstone of house gop plan for corporate tax reform. you don't have to explain it to us because we have been talking about it for weeks on cnbc. what hasn't been clear to us is whether people in this building including the president himself support the border adjustment provision in the house gop plan. it sounds like you do. >> there is no question that we need a b

government sessionfor china's the to the wto was that china would play by the rules.ise was incorrect and stronger enforcement is the key to obtaining compliance. tryooks like mr. ross will to sink some teeth into china to make them play by the so-called rulebook there. other person one making headlines, gary cohen, trumps big to be director of the national economic council. overis making headlines because of his payout from goldman sachs. goldman itself lifted restrictions or accelerated delivery of payouts on about 120 $4 million in stock and cash rewards. it means that he gets $20 million in pay for all of 2016, including $18 million in variable compensation and $1.85 that totalary to get amount. it is interesting as we move ahead with these picks that continue to get confirmed here, mr. trump rose on a wave of populism, and when you hear more and more about this goldman sachs executive, and three total and his, it will be interesting to see if there is any backlash against the populist fervor he rode to power. rishaad: thank you very much. still ahead this hour, r

that would go against wto. that would go into a dispute.alize you cannot unilaterally do that. if he was in fact to be successful and impose a 20%, that is just the cost to the particular product. moremakes corona attractive than say budweiser. that does not mean people who like corona will stop. --: america will michael: america will build a wall around rochester, new york. they floated this idea of a 20% tax as part of tax reform, to bring down the corporate tax rate. the tax imports by 20%, it helps fill that hole and maybe gives a boost to exports, that is the theory. but who pays that 20%, becomes the important question. we are talking about mexico paying for the wall, but u.s. consumers would pay an import tax. that would for the most part be passed on if there were substitutions. either you are going to have to absorb the tax in mexico where you're not going to buy corona. tom: you do not know what genesee cream ale is, do you? guy: i do not. let a bring up my bloomberg, because it has a function on it which allows us to kind of moni

globalization is leaving them behind and china is now in the wto.r three weeks. i'm at a souvenir store in cairo airport. by my honey little something to remind her where hunting was for a few weeks. let's see, what do they have here? pyramid ashtrays. and my pumpkin doesn't smoke okay.now have a stuffed camel and if you squeeze it's hump, it honks. now my honey does not have a honking hump camel. i took it to the cash register and i turn it over and what's it say the bottom? stay with me now, made in china. during the lowest wage country in the eastern mediterranean. there is now a country have a continent away that can make it cheaper than you can, ship it and take the prophets back home.so what is happening? all of these average states à they are actually cracking up. and we are just at the beginning. because they can't handle these accelerations. they are like caravan homes in a trailer park. there built on slabs of cement with no basement and no foundation. accelerations are like a tornado going through a trailer park. it is starting in west af

going to get a good deal and did not in fact get a good deal and did not in fact get one and fall onto wtomeans tariffs, and businesses worry could damage trade. many thanks. john, i said this speech was long—awaited, how much detail are we likely to get? theresa may is being egged on by a chorus of enthusiastic brexiteers in her party, in the press, some in her cabinet to promise as clean a break as one can imagine from all eu obligations and ties. theresa may is, above all else, a pragmatist. he has not played her cards as closely as she has done to tip them now. she is not an ideological committed brexiteer. she will be clear on driving as hard bargain as she has two to achieve laws made here in britain by british lawmakers and e nforced britain by british lawmakers and e nfo rce d by britain by british lawmakers and enforced by british judges and within borders managed by an immigration policy made in britain. there are expected to be maybe a dozen points she will touch on for the coming negotiations in the week ahead. will that satisfy the clamour for more clarity? not much chance of

about the 1990's close to 4% growth in that was uh time of rising trade deficits with the duty of so -- wto look at the economic record what you see is trade and the economy to gather. we need both. the presidents that have the best record with imports and exports with the recent loss of manufacturing jobs. for those that disappeared more than 80% disappeared becauf because of automation and 13 percent become us of trade. we need to encouragede automation to make the transition to the jobs created in the 21st century. >> independent n new york are you better off or worse than eight years ago? >> caller: i am pretty much the same battle little bit better considering theh housing market that obamacare into but it was a complete travesty. if he'll look at what obama did if you ran the car off the road they're not that smart bet goal of the cliff one more time. the house was on fire and he rebuilt the house. the planning and the windows and that she rock -- but it is not functioning considering. look bad gdp, stockmarket, unemployme nt, health care he did a very good job. >> what more could the

it does imply, potentially, a cliff edge and fall back on wto provisions which many sectors of britishanguage that the prime minister chose yesterday in relation to the eu was really welcome as a change from the battering and abuse that the eu gets from so many political figures and the media figures in the united kingdom, to make it clear that a deal which is in the united kingdom's interests is also likely to be in the interests of the eu. that is absolutely prefera ble of the eu. that is absolutely preferable to a fallback or default position where there is no deal. the prime minister must be aware that there may be some voices in the uk that might push in that position. and we heard nicola sturgeon saying yesterday that, if the fallout, given we are leaving the single market, a second referendum is now "more likely". let me put it to you, she has bottled it, she hasn't got the nerve to push the referendum button, mark two. i don't know where you have got that from. the scottish government has put forward a plan in relation to brexit. if labour don't think that is a hard brexit i ha

said the decision to support the entry into the wto has proved incorrect. gary: hence for the -- consumer protection toncy wants manufacturers step up safety. they say will they conduct a review into battery technology, citing flawed industry standards. 1.9 million phones were recalled. they say they are continuing the investigation. global news, 24 hours a day, powered by more than 2600 journalists. i am rosalind chin. chor: looking ahead, inflation nation. the latest cpi data from sydney. yvonne: and where is the value in asia? this is bloomberg. ♪ this is "daybreak asia." yvonne: a quick check of the latest headlines. chinese smartphones are routing rivals in india, challenging samsung. vo andand others -- vi others took four of the top five spots. samsung remains number one, but it's market share fell to 24%. chinese brands had a collective 46%. itse is expected to make case for starting phone production in india. is also seeking concessions to facilitate setting up production. apple said it was ready to start making phones in india. predatory pricing b

is great that china joined wto. that they participate in markets. a huge contributor. they have been -- done a lot for poverty. there are financial imbalances. democratic deficits in the way they run the country. i would not say they are a model, but they are doing a lot of things right. the fact that they want to engage in the world, i think that is great. >> do you see them beginning to emerge in philanthropy? countries, we see the tech sector. , a lot of thea tech people are doing great philanthropy there. in china, the same thing. they are still in their 40's and 50's. still pretty young, but whether it is health, environment or education, starting to get a lot of good dialogue between our foundation and there's about what has worked and what has not worked. yvonne: that was microsoft founder bill gates with bloomberg editor and chief. coming up on "bloomberg " we speak to in analyst. find out how he thinks the relationship between washington beijing will change with donald trump calling the shots. ♪ ♪ yvonne: 8:30 in singapore. just half an hou

she in those circumstances negotiate an alternative deal or the audio options falling back on the wto's which mean 10% tariffs on cars, 20% on food and drink and a host of trades investments and prosperity. >> i expect we could negotiate a good deal in terms of trade with the european union, it would be in our interests and those of the european union as well. there will be a vote on the deal for this parliament but then if this parliament is not willing to accept a deal that has been decided and agreed by the united kingdom government with the european union i sense it is no deal then we fall back on other arrangements. >> graham evans, great pleasure to welcome my honorable friend the prime minister out of her cabinet earlier this week. i welcome the government's industrial gravity which will bring high skilled hide wage jobs that will close the northbound divide in the message is britain is open for business. >> prime minister. >> i and the whole cabinet were pleased, seems to be able to sit down and meet with small businesses on that particular side and to hear the support the gover

within existing trade deals, we can figure out, is there a trade dispute that could be settled with the wto, is there a revision to one of the existing trade treaties that we have now. there is a lot that could be done. there are things that congress can update to make sure that we're importing and exporting more to benefit american businesses. >> does he plan to -- [ inaudible question ] >> has the president had a chat,chat, informal chat before the prime minister comes here. >> there are no plans for that. it is possible. he has had a tremendous number of calls, i think the number is well over 80 that have talked to him and congratulated him and he's met with canada and mexico and he's talked to prime minister netanyahu yesterday and president al ci ci today and there is exciting in the diplomatic level of people that are excited that president trump and this administration want to engage -- there are times when he is talking to folks and he says i haven't heard from anyone in years and there is a united agreement in the area of trade and also in the area of national security. >> [ inaudi

as a currency minute later and the big thing they had was china's admission into what was called the wtot was then called the general trade agreement. the u.s. that unless you make was a majors, that hold over china and promise them to lift restrictions on foreign currencies and by the end of 94, they reached a point where the u.s. lifted the tide on china. was theirit clear it biggest leverage over and now they don't, if you don't reform your exchange rate, we won't do x, y, z and it's one of the particle differences in the last 20 years. betty: how different is the chinese economy compared to back in 1994? side of it, the base, it's much less export dependent now. in the accounts that came out on friday, consumption is now driving growth and services are bigger than the manufacturing sector and exports were a net drag on growth in 2016. none of that could dismiss the importance of china's exporting base. nato possible growth drivers, as we know, it is the case that if the u.s. was to tackle china with across the board tariffs, the impact might not be as severe as one might inc. given t

no deal is better than bad deal well i don't think she is being straightforward because relying on wtoa very bad deal for britain and we need to do better than that. i think lots of businesses thinking about the prospect of britain on wto rules but we have a shiver down their spying and will be thinking very carefully about where they choose to locate jobs and economic activity and whether britain is to do that. are you sanguine about the prospect that evenif you sanguine about the prospect that even if parliament votes against whatever mrs may manages to achieve, but will not stop britain leaving the eu, are you ok with that?” think the vast majority of parliamentarians were though new but did leave remain expect ayes accepted the verdict of the british people. ourjob is to hold the government to account to get the best possible to deal that gives britain the best possible chance of success outside the european union andl success outside the european union and i am not at all sanguine about the fact that theresa may has ruled out membership of the single market and the customs union.

those things are adjudicated by the wto, but in the meantime you have penalties on the industries affectedmexico has more at stake, because their exports are a bigger percentage of their economy than ours, it could still hurt the u.s. very badly. mark: i was looking at some of the bloomberg data -- fascinating numbers. the trade deficit, which surpassed $53 billion. germany, $75 billion. billion, not taking into account the multi-hundred billion dollars deficit with china. is it only a matter of time? now he has rhetorically gone off to germany. could he go off to japan and germany? michael: he could, and nobody knows why he has this feeling exports are bad or a trade deficit is necessarily bad, because it is the way we pay for important things that we want to have. is a way that makes our nation richer. economists are scratching their heads about the whole thing, and they are scratching their heads about why this is happening now when the u.s., mexico, and canada have this working well agreement that could be upgraded, but does not need to be a battle. when you have the trade deficit with

you see nafta starting, then china enter the wto.nwhile, the blue line represents imports from mexico , exports and imports have risen steadily between the two countries, so maybe nafta was not so bad entirely for the u.s., but what has fallen definitively is the number of u.s. manufacturing workers and china'she question of currency strategy, how much it impacted it. nevertheless, what is important for mexico is that 80% of their exports go to the u.s.. mexico asent of saying he will seek a respectful dialogue with donald trump guided by national interest. mexico meeting donald trump on january 31. for now, we will sit down and continue this dialogue and maybe ak, letter hoping to keep things on track. yousef: theresa may talking about a potential trade deal with the u.k. how much traction is she making and what do we know? a white house a tells bloomberg news that they intend to lay the groundwork for a post-brexit trade deal. said publicly she wants to build on the special u.s.-u.k. relationship, not just trade, but national secur

wto, or sherman antitrust or market manipulation law. and that way when we're collecting the evidence -- it's not subjective. you're looking for evidence that matches precedence. precedence with cases that have been in our courts as well as the wto. and you're looking for leading indicators, something about to happen, or trailing indicators of something that has happened. so i mentioned in my written testimony that for the most part, a lot of the evidence that we'll present will link back to either entry, anti dumping, subsidies, countervailing measures and then we also have the u.s. laws for market manipulation and fraud. so that kind of sets the tone for how we go in and how we collect the evidence and then how we even make predictions. now, in terms of our own laws, too, you'll note in my written testimony that i recommend that a lot of times, it's just following what we currently have. we have a lot of great laws in place. but because we're stovepiped in the way we're looking at the issue, and sometimes we fight our own instincts on

we saw a recently court case go into the wto asking for more protection to get dumping by china.llows a lot of the court cases that have not on. you see a much more protectionist standpoint. underst recent thing came the obama administration but nobody expects that to be curtailed by the new administration. vonnie: i want to play a sound bite that we got from iraq's oil minister take a listen. it will be in 100% compliance with the opec agreement. month, beforethis the end of this month really, we are going to complete our share of 210,000 barrels a day. that is a reduction in us as a whole. vonnie: can i get your thoughts? obviously, that is the reason. here we see that iraq is not compliant yet. it will be. tina: they came out of the meeting all smiles. everyone was talking about how great it was. is they willt now reach full compliance by next month. russia has already reached full compliance. more interestingly, the russian energy minister is talking about the trust between non-outback and opec nations. positivity inat terms of the compliance of the cuts, oil prices are still

administration, or should we take serious those threats against the wto's, where do you stand? president-elect have made his views clear. a lot of people speculated that the candidate trump would be different to the president trump. so far we have not seen any evidence that is the case. so my real concern is in fact at least some of what president-elect trump has indicated will translate into actual policy, and that is risky for the global trade situation, and also for the global economy in general. i am definitely concerned. have jamiewe also just warning about what is happening in europe, and that there could be more discontent for populists across the continent. we have the ecb policy meeting. investors are thinking it will be this news fast, more boring the better. the qe, do you expect continuation of that, or will there be pushed back from germany as we see inflation rising their? tarek: i think the ecb will be on hold for the foreseeable future, and that will create a problem as i indicated earlier in the currency markets. with u.s. industry going up -- interest rates go

those circumstances negotiate an alternative view or would her no deal option mean falling back on wto views which mean 10% tariffs on cars, 20% on food and drinkto and a host of other trade investments in the uk. >> i also set a my speech last week i expect that we will be able to negotiate a good deal ia terms of trade with the european union. there will be about on the parliament that if thisept a de parliament has to be decided and agree. i said if there is no deal we do have to fall back on other arrangements. [inaudible] >> i want to be able to sit down and meet with small businesses and here the support they have for what the government is doing britain is open for business, we will be out there trading around the world, the global leader in free-trade bringing jobs. >> thank you mr. speaker. there are hundreds of thousands of women around the world that marched on behalf of women's>> rights last weekend. of course, we have been lobbiedw by members. many have launched petitions asking the government. >> what he also noses the government has also already been working to reduce th

markets against unfair competition, to defend its manufacturing base against unfair taxation like the wtous, and mr. trump has made it clear, president trump made it clear that we are going to move forward with trade policies that benefit america, and it is going to be great for this country and great for the world. liz: peter, we've got eight minutes before the closing bell rings. we're blowing out commercial breaks can you stay in with us. if -- >> only if you promise to break 20,000 bit close. otherwise i'm out of here. can you do that for me, liz? you can do it. come on. liz: i have this duct tape on the hat. let me bring in traders. tim, what do you make of this move, and there is almost no going back today. transports are up 3%, will close at all-time high. that looks probable earlier in the week. russell is about five points away from the all-time high. maybe we get there tomorrow. liz: folks, if you're listening on xm and we're almost at highs of the session. alan knuckman what does say about momentum. >> this is the cherry on top. we're continuing this rally. 2400 is still the up

putting as currently case at the wto over what they say are subsidies for aluminum producers and chinaare being shipped to the u.s., depressing prices in the u.s., so there are a number of trade disputes already playing out between the u.s. and china, and this is before trump has taken office. rishaad: thank you. tom mackenzie there. a key question, just talking about it, part of this whole equation, the agricultural side of things, we caught up with the peterson institute president adam pose no who said his a trade war could do huge damage to the united states. >> if you are dealing with somebody who exists who is not going anywhere and trying to exist and is not going anywhere, you can't bully them and try to posture and say oh well i will make this thread. we have modeled what a trade were with china would look like, and it would put people out of work in las vegas in tourism, walmart, out of work in the production in ge, and the auto industry in the u.s.. the fact you could do more harm to china and the u.s. does not mean it would not cause harm to the u.s. the last 40for years, pr