The best week since december 2016. Some of that bullish action is continuing. All time highs. Very small gains. A lack of conviction. Investors taking a breather ahead of earnings season. They had a technical analysis, this is 8605. She presented a version of this chart, and she believes we will see consolidation. This is the s p 500 over the last year. Area sheve a cloud likes to use. We will see the s p 500 pull back down to that. That is less likely and she believes the gains for 2018 will be smaller than 2017. Time will tell but that is an interesting view. Lets take a look at a five day chart. Earlier we were looking at the first declines in five days. In the way. Up 2. 7 . Last week was the best since the end of 2016. The gain may be small but it is a broadbased gain, small rally. We see most of the sectors are higher. Such as utilities in real estate , information technology. Health care is significantly lower. The big drag is the biotech sector. Lets look at the names that are down. These declines may have something to do with the possibility tax reform may not help these companies. They see the tax rate rising between 16 and 18 , higher than what it had been. We are seeing declines for this sector. Lets talk more about the market. Monthy has been a poor than in recent years but this year could be a different story with stocks off to a solid start. Joining us now, Bloomberg Intelligence chief equity analyst. Great to have you with us. What can we deduce about the rest of the month . Over the first week, people are looking at the year in targets. The first week implies strong gains, strong gains for the rest of the month. Historically, stocks in january with an above average performance 70 of the time. Statistics are working in the favor of the market. The other thing is investors chase returns. Over the last 25 years, the fact we have such a strong 2000 17 am a you have some flows benefiting in 2018. Scarlet and new money being put to work. We see it is volatile as a result. Talk about what january means for the market for the rest of the year. There is a lot of controversy. It depends on what time you select. If you look over a long time to read, the majority of the market year, it isy incredibly important you get a decent january to power decent returns. Last year we saw stocks have a soso january. It wasnt a great january. We had a great year for stocks. It is controversial, frankly. Scarlet this is what we see, the 8 gain is the blue bar. Nine and a half percent for the s p 500. Iswhat this chart shows you and overturns followed by january returns. I want to help highlight what happened in the late 1980s. Followed by a bump in january. Each of the januarys were relatively strong. Up, are chasing that melt you have heard that to describe the s p 500 a lot. If we are entering a melt up you will see investors chase returns like that. Confirm thats not maybe we are in something different. 6 what about julia what about analysts . We are now within a quarter of analysts within half a percentage point of the year in targets. What do you do . And what is going to happen between then and now or do you revise higher . We were making price target estimates. We said the fair value fundamentals suggest we probably get an 8 return to stocks. Take far away from fundamental fair value and we are in a point in time where projecting the earnings is dicey. Tax reform has taken that estimate and is moving around the estimate more so than we would normally see. We are going to see expectations move higher. The consensus has not moved expectations high enough for earnings in 2018. They have been skeptical. We are just starting to see that. To incorporate what . One analyst said the forecast, if you just said by two percentage point for the tax impact, and that underestimates the cac the kick we could get from this. They actually have incorporated the tax reform. 54 aid it would hundred 145 per share throughout 2017. This is the analyst consensus. Just moved that estimate by three dollars higher to 148. To move the tax rate from 26 to 21 my that has to go to 153. That is five more dollars to account for tax reform. 6 when we hear scarlet when we hear from the ceos, we are probably not going to hear discord . It is too early to make concrete plans. Think we will hear a lot of it. I think there is enough pressure on the companies to release expectations we will start to hear a lot. Maybe we will hear more shortterm things. They are passing along tax savings to employees. We probably wont hear any increase in distribution planned. Any increase in dividend, anything permanent they are planning to change, they probably will announce in the First Quarter. Like capitallans spending, allocation of cash, we longer forto wait that. I think this is a First Quarter event. Julia you might get left behind if you dont make a splash in this earnings quarter. Thanks to gina martin adams. Julia kaylee . A protest land for tonight where President Trump is expected to attend the College Football playoff title game. The Atlanta Branch president said the group is urging people to wear white to the game and wave white towels to mock the snowflake label Trump Supporters used to describe opponents. Another demonstration will be planned before the game. Tom steyer will put 30 million in two this years election but wont be running himself. He wants to focus on ending republican control of the house of representatives. He has donated 100 million to political campaigns. The Supreme Court has left intact a law that curbs gay rights. Businesses and government workers can refuse to provide services to gay and transgender people on religious grounds. An Appeals Panel found the law challengers failed to show it would harm the 02 bt community. The appellate judges did not rule on the laws substance. Refuse to clerk who chris issue marriage licenses is running for a second term. Kim davis cause an uproar when she stopped issuing marriage licenses after the Supreme Court struck down laws banning samesex unions. Theothers have filed for seats. Global news 20 for hours a day powered by 2700 journalists and analysts in 120 countries. Scarlet . Scarlet coming up the what President Trumps agenda means for m a deals. He has worked on major transactions. This is bloomberg. Julia this is bloomberg markets. Scarlet it is m a monday. We want to look at how President Trumps agenda will affect big deals in the year ahead. He has been involved in numerous mergerncluding crafts with heinz. Great to speak with you. When it comes to President Trumps agenda they have been clear about deregulation and how he wants to make it easier for companies to do business. It is not necessarily good for dealmaking. Goodregulation has been for business. That will lead to the drive towards consolidation. , as is not Ronald Reagan much as he talks about Ronald Reagan. Ronald reagan was a pure conservative. Trump is the populist. Populist themes override the pure probusiness conservative themes at times. As much as he criticized immigrants for picking winners and losers in business, the populism of trump does the same thing. Julia we can tie this down. We have the disney fox deal which seemed to get a thumbs up. We have the at t time warner deal which has not and regulators are saying they do not like it. The latter is a horizontal a vertical. The former is the opposite. There is a disconnect, a confusion for the industry. We were talking about this having a chilling effect. How do you deal with that . Seen when trump tweets certain things and attacks Certain Companies their share price goes down. That is his bully pulpit bully pulpit. You are right, if there is a company or transaction that he likes or dislikes, it has an effect. Historically antitrust review has been a political. How do you tackle this . As a company in particular this has to have a chilling effect. One of the things given his objectives about jobs, if you are combining to companies, you have to be cautious about elimination of jobs and facilities. You have to be more focused on how much more you are going to invest in the u. S. And how this allows you to expand. The message has to be crafted. We talked about media as one area the president has opinions. What industries in general are something he will not get in the way of . Alexi is less interested in tech probably because he doesnt understand tech. Knows abouteem he other technologies. Industries that he doesnt seem be of less will concern. Industries, transactions that on purely u. S. Combinations the other hand he will be concerned about crossborder deals, particularly if they are not with our usual allies. Overhauln how the tax changes the landscape for dealmaking. It changes it a couple of different ways. 2 trillionng to have or more repatriated. Technically it is already repatriated today. Companies have to pay tax on it over eight years. Future income outside of the u. S. Is automatically repatriated. There is an impetus to do more crossborder deals. In ase of this cash coming lot of this is going to be used for share buybacks that will boost share prices with make shares a better merger consideration. Third, companies will have more cash. All three things are going to be drivers. The additional thing is, having that lower tax rate means when they look at their irr, is this going to be a profitable transaction, the hurdle is going to be lower. I think youre going to see more m a. Julia do you sense what proportion of that, 2 trillion is going to be spent on m a versus buybacks. The second portion, we are seeing complaints about valuation. It makes acquiring assets more expensive. Looking for opportunities within the united states, a doubleedged sword. Sort of. Be a unclear, it will company bases as to how much capital they are going to return to shareholders. A number of share prices have gone up because of expectation of these repurchases. When you actually read purchase the shares earnings per share moves up hermetically. Intoyou get the evaluation line. Scarlet we were talking about a fear of missing out if the Previous Year gains are good. As companies consider consolidating acquisitions is it going to be defensive or offensive . I think it is going to their he by sector. In certain sectors you will see u. S. Companies combining because they feel they need to be bigger on the global scale. Which . Something, any of the consumer sectors. U. S. Companies are under scale. When you look at Something Like tech, that is going to be more defensive. They were already in a good defensive position. It is going to vary. Julia great to chat with you. Ahead, why the swiss bank is wrapping up its presence in the country. From new york, this is bloomberg. Scarlet this is bloomberg markets. Julia china is loosening its control over the banking sector. Ubs is moving in. We have started discussions with our partners about not only going after 49 , to grow it up to 51 . The new legislation allows that. We are pursuing that strategy to can continue to grow in china. What is the timeframe for that increase to 51 . It is always a backandforth discussion between us and our partners. We were happy with the experience with our local partners. We want to find a winwin situation for everybody. It is a matter of months. Up . Ow will that set you forwardd in china going once you have that 51 . In full control from a managerial standpoint in china. Financial about agreements dan from a strategic standing. We have been growing our business. Two years ago, we doubled our accounting in china. We are on track to achieve that. 600 people in back of 16. Were going to be 1000 at the end of 2018. We are in line with their plans to grow. Have a moref we can rounded financial participation in our business deal, it would be welcome. I find this fascinating. We were talking about the symbol of china trying to open up its Financial Sector allowing companies to own a 51 stake. Making the announcement after President Trump was in china make it clear they are making a commitment to allowing foreign investors. A lot of people questioned why the president did not make a bigger production of it. Julia it does feel like china was trying to send a message and it was not necessarily picked up by the white house. Scarlet the banks are picking up on it. Julia very much so. Move beingbolic acted upon. Other corporate news, the biggest Business News in the news now. Pimco and citigroup telling clients there is cause for concern as global stocks are at record highs and volatility remains muted. They say geopolitical factors and and overshoot could halt expansion in market exuberance and warns the u. S. Economy is in business stages of its cycle. The engineer fired after criticizing the diversity policies on gender is countersuing. He alleges he was harassed over conservative views while working at the tech giant. Still ahead, gopro shares are dropping off of a cliff. Is a sale in the works . Bloomberg world headquarters, this is bloomberg markets. We cap Commodity Markets closing in new york. Lets check with crude oil. Wenting around, it briefly negative, unable to break past that 52 mark. Uncertainty with protests in , and anxiety over u. S. Production as well. Crude unable to get past that point. ,old has been trading lower snapping the 11 day winning streak. Gold is down as the dollar enjoys the last day since middecember. Checking the stock commodities, coffee and sugar heading south. Rainfall was above normal, and if you look at sugar, it is falling on a surplus crop. That is eroding demand outlook. Julia lets check the headlines on the bloomberg first word news at this hour. Time is running out to avert a partial government shutdown. The next deadline is january 19 republicans and democrats are far apart on a spending bill. Of the key issues, immigration and a budget cap. Lawmakers may decide to pass a shortterm spending measure. A fire broke out on the roof of trump tower. Dozens responded and the fire was put under control. Son called amp small electrical fire. The human Migration Agency has raised the death toll to 64 thinking of the in the sinking of a rubber dinghy that began sinking due to a puncture. The Italian Coast Guard has rescued 86 people. The worlds most expensive bottle of vodka has been returned empty. The bottle with a diamond encrusted cap was stolen from a bar. The thief appears to have consumed all of the vodka and dumped the bottle at a construction site. The owner says he plans to just refill it. Global news powered by 2700 journalists and analysts, this is bloomberg. Julia what an amazing story. Scarlet you love that. Vodka and thenhe chucks it somewhere. Coming up, one of our top forecasters. We speak with jason about moves in the currency and commodity market in 2018. Dont miss it. From new york, this is bloomberg. Scarlet this is bloomberg markets. Gopro could soon be putting itself up for sale, said to have hired j. P. Morgan chase, paring earlier losses. They announced it would cut 20 of its workforce and exit the drone business. Selena is standing by with the ceo. Thank you for joining us today. Bloomberg has reported gopro do ar j. P. Morgan to potential sale. I can conform confirm j. P. Morgan is our banker but we have not engaged them to help us sell the company. With that said, if there were an opportunity for gopro to partner up with a Larger Organization that could help us scale, scale our brand and our reach that is something we would consider but it is not something we are actively engaged in. Do you think you will . Is there a catalyst . Have potential suitors reached out . I will answer so far as would we . This is something we explore from time to time as it is our job to grow the business in the most are tedious way possible. That is one way to do it. It is not a new profit topic but i cant share more information than that. From your perspective how are you evaluating the different options . This is not a new topic. Is something changing now . In world is always changing. Our job is to align with Consumer Behavior and look for ways to scale the reach and relevance of gopro. Sometimes that is easier if done with a partner or an acquiring company but we have to build gopro as though we intend to run independently for ever. I cant really share any more information other than we are building a strong business with strong sales in our products. Black is now at 399. We are expecting big things there. As we build for the second half we may, it makes sense be considering other options may exist. Can you talk about organizations you would love to work with if something did work out . Number ofk of any Electronics Companies that gopro could fit well into. How are you thinking about it . Going to go into too companyail but, being a enabling people to capture and share themselves and exciting ways, gopro is an exciting company. We have one of the strongest brands that is well regarded for our ability to help people capture and share active lifestyles. We are primarily focused on spreading our brand, our Hardware Solutions to reach as many consumers around the world as possible. Scarlet shifting gears, gopro is continuing to narrow its vision. The entertainment unit shut down. How should we understand the product roadmap of gopro . Arehat you are seeing is we listening to customers more and more, investing in development of products and solutions our customers want from us. In the past, i am on record as having said one of the things that makes a strong is we are our customer, we develop products we wanted and that seemed to resonate with the market, we realize we are in the business to build products for our customers and we need to identify what they want, and invent for them. That can be difficult. As you are inventing, new solutions, the consumer does not always know what they want. That is their job, it understand trends and builds. Our customers love the entertainment gopro enables but they did not need us to be an entertainment business. Our customers have told us they really love buying cameras, and while a passionate number wanted to buy drones, the majority want to buy gopros that connect to a great app experience and that is what we are investing in. There was weaker demand for hero five camera. Analysts would say this means the market is commoditizing. What would you say to that . We got more data now that largere have a percentage of repeat customers than we thought we did, which is terrific because there is strong loyalty but it also shows us pricing is increasingly important, and with hero five black and session,yearold products being sold in the 2017 Holiday Quarter for the same price they were launched at did not resonate well because either a decent percentage are ready own that camera, and those on the sidelines waiting to upgrade dont feel good about upgrading to technology for the same price it was a year ago. That lesson is learned. When we lowered the price, hero five products, we saw a sharp increase. More than two times and threetime sales in hero five session. Lesson learned. We apply that same thinking to hero six black, which was selling well and beating expectations at 499. We expect sales to increase significantly as we lowered the price to 399 dollars as of yesterday. There have been several rounds of layoffs. With this most recent reduction there will be fewer than 1000 employees. Should we expect to see fewer reductions . No. The recent reductions which involved headcount production get us to the necessary Offense Level that will allow gopro to be profitable in the second half of 2018 and we are seeing good sales of our products. Continue asales forecasted we will be in good shape. This is the best lineup we have ever had. We are feeling good about this into 2018. Thank you for your time. Scarlet thank you. Lets move on to economics. New year, new forecast. The 2018 outlook from one of bloombergs topranked forecasters, jason shanker. He is the president of prestige economics. He is the editor of the Futurist Institute new book. Robots and on the patient shortly but it want to start with your outlook for currencies. E saw a weaker dollar the fed raised Interest Rates three times. You see pressure going forward. Is this because it is more convincing than the u. S. Dollar or is this driven by the greenback . The strength is in other currencies. During the year, weve got a number of fed rate hikes priced in but if we look at data out of the u. K. Things are there he strong. I think we are going to see policy surprises from the European Central bank. That eurozone manufacturing has expanded 54 consecutive months and at a record level in december. At some point the ecb is going to have two talk about taking the punch bowl fouled away and it is going to get a big pop. That is going to happen in the next few months. Julia i look at that inflation reading and it felt like a reminder that for all of the excitement we can see in the manufacturing sectors, actually on the inflation front there is a huge concern. What is your forecast . How concerned are you about Inflation Holding them back . Thingse are a couple of tied into this question. While inflation has been tepid it is likely to increase as we. Ee Commodity Prices increasing these things are going to provide upward pressure and you are going to see that manifest in the u. S. And in the eurozone. I think youre going to see the ,urozone respond quite quickly by the end of the year we are higher30, quite a bit than where we are now. Your member in january we were testing around the 104 level. We have seen a bigger move since then and that is without the European Central bank doing anything, with the fed raising rates. Imagine how big a pop we see when the ecb finally decides to Start Talking about eliminating quantitative easing. Lets take a look at oil. Above 60 a barrel. You see upside oil price risks. Is this a demand or supply story . It is both. We see price between 60 and 65 a barrel for the year. You have a Strong Demand side where you see china, the biggest net importer of crude in the world. The demand is increasing. You see the Global Economy remaining strong. You have opec and nonopec members agreeing to hold down production. I was at the meeting with the extended that. Both of those factors should provide upside price risk. We want to talk about your book, a collection of essays. Talk about the criteria you use to pull these together. What was the key findings . We pulled together two dozen different experts, executives and investors. Executives from hp, microsoft and the head of research from robo global. We had a number of different folks. We tried to get academics and sider investment on the that we could look at how our robots and automation going to affect the world this year . Aboutwas a lot of talk robots at the beginning of 2017. Robots was a big topic. This is going to be a critical. Ear of transition is the what do you see biggest risk from robots and automation . In general, what it always is. Educationt downside, opportunities and access. And entitlement reform. Entitlements, they are funded by payroll taxes. If we dont fix that there will be an over incentivize nation for companies to automate when it does not make sense. That is the biggest negative. In elder care and child care, in the supply chain ecommerce is only 9. 1 of all retail. Less than 10 . What happens when they get to 20 or 30 . Were going to see this accelerate more and you are going to see more robots and service in service and childcare areas. Julia we didnt want to talk about your book. Position say that your positions are at a record high. Who are going to be the people that with it by yearend . We think it will be above 1 30. Youre going to see a lot of people who get stopped at this point. How quickly the pound moved on brexit. I dont think we are going to get that magnitude when the ecb makes that announcement but we are going to see, as we see that talk around monetary tightening and ending quantitative easing, you are going to see surprises. I guess the institutional guys as well. Great to chat with you. He just released a new book, worth the read. This is bloomberg. Scarlet the Digital Currency world maybe be getting more inclusive. Stark,own with elizabeth of lightning labs, a cryptocurrency start up. I asked where women are most prominent. There are a lot of great women in the cryptocurrency industry. Core ethicsuilding of the protocol. That are a lot involved in the trading aspect and in the investing aspect as well. Who donthe people know anything about it get to interact and hear from them. People love twitter. There are a lot of weight women on twitter constantly tweeting and bringing real value by doing so. How we transact, do you see an increasing number of women for people of color, people with different backgrounds getting a chance to help build this world . Whats one thing that is fascinating is that it is a global phenomenon. We are collaborating from people from south america, europe, asia, from all over. It is not just in silicon valley. You get people from different perspectives, different needs for the technology which is part of what makes it great. Scarlet do you worry if there is a pop, women will somehow get blamed for their role helping to build it up . No. Blockchainsng is have not been around for a decade yet. It is very new. The woman getting involved are starting their own projects and doing it themselves. They are not in a company that is failing, they are starting their own thing. Scarlet but they are helping to fuel this bubble. People still dont have an understanding of it. Are they more vulnerable to being targeted when it doesnt work out . One persons bubble is another persons upswing. One thing we have seen is that it is resonating with millennials. Square was the First Public Company to sell bitcoin to digitally connected user base. That is a more diverse group. I dont see women are going to be the blame. They are building the future. Scarlet i can think of a handful of successful men who. Ounded Great Success whether it is bill gates, mark zuckerberg, but i cant think of any women who have done that, been able to start trends credentials . Is the bar set higher . Who do know of some women now engineers in this community. It depends on the individual and what makes the most sense for them. Maybe they learned skills on their own. , one ofa developer the things we look for is not credentials. It is what your potential is to build. What have you been able to do in the past. I have hired people, i dont even know where they went to college. That is not to say education cant be beneficial. Withve several people degrees but it depends on the individual and we have to figure out what makes the most sense for them. Scarlet coming up, lawmakers will strike a deal before government government officials raised to strike a deal before funding runs out next week. Scarlet it is 3 00 in new york, and 8 00 in london. Julia welcome to bloomberg markets. Scarlet live in bloomberg world headquarters, here are the top stories were covering. Budget battle with the house lawmakers returning to the hill with days to go before a partial government shutdown, we go live inside the beltway. In new york. Her we look at the promised infrastructure plan. What it can mean for investors. And we speak with the ceo of roche pharmaceuticals. Can they remain the leader in cancer fighting drugs . We are one hour from the close of trading. Abigail, the bull market continues. Abigail it does. And dow the nasdaq fractionally higher, this is enough to put in alltime highs on pace for record closing highs. , seem to be continuing from a more moderate standpoint. Taking a little bit of a breather after big gains last week. Climbing the most is december 2016. A strong start for the year and starting in full motion friday with a big bang. Investors treading water in a slightly bullish way. Caterpillar,a, amazon and facebook extending gains. Nvidia up on the news volkswagen and uber will use that technology for self driving cars. Caliphate or other up on an upgrade to overweight tax reform likely to extend the foranys construction cycle the construction business. We do have bitcoin always of interest, doing the opposite of what those movers are doing. Down 10 . Western union both sharply higher on crypto reasons. 4 culation the company owns is a ripple. Upgradednion has been to a neutral may negative. The company may get some sort of benefit from cryptocurrency. That craze continues. Julia lets get a check on the headlines. Kaylee. Of the department of Homeland Security has announced the u. S. Is ending temporary protected status for immigrants from el salvador. The dhs secretary said he the military and crisis no longer exists. Protection for tens of thousands will officially terminate in september 2019. Oprah winfrey is denied reports she is considering a white house run. Her speech last night fueled rumors about her interest that after accepting the Lifetime Achievement award she told bloomberg she does not plan to run for president. Emmanuel macron is calling for the relationship between the eu and china to enter the 21st century. He wants more balanced trade ties and hopes to quad rate with chinas initiatives to send billions of ball set spend billions of dollars on infrastructure. In a wideranging speech to diplomats from 185 nations frances reaffirmed the need to respect the status quo of jerusalem and demanded leaders put the dignity of people before more profit or power. 2700l news powered by journalists and analysts in 120 countries. This is bloomberg. Thank you. Turning to capitol hill, the house returns to work today as lawmakers work to balance the budget. Congress may be able to pass another stopgap measure. Joining us, great to have you with us. Will there be enough agreement to raise these budget caps . And about Immigration LawHealth Care Law provisions . There are a ton of different items on the plate republicans and democrats need to come together on. The president talked about bipartisanship and how to get anything done they are going to have to reach across the aisle. Right now they are very far apart including immigration. Points are for a stopgap spending bill that would kick the can down the road. It would buy the additional time because they are so far apart. A number of democrats are saying is there not a fix for the jimerson immigration, they would not sign any additional stopgap spending deals. This could lead us to getting closer to a government shutdown. The two sides are very far apart. Julia the president was calling for bipartisanship overall but he reiterated his stance once again that the wall is going to happen or we are not going to have daca. On some of the fundamental critical issues, particularly for the democrats, he is making a firm line in the sand. To mcgrath and republicans have been working together. There was a group working to figure out how they can have compromise. The president blue up a lot of that with his demand for an 18 billion funding for the border wall and that is something that was not part of these discussions. If the president remains intransigent on that point it is going to be difficult for those behind the scene negotiations to continue. Democrats are saying the president is making it harder and you are hearing a number say they will not vote for any type of spending deal that does not include a fix for daca. The clock is ticking and it is going to be difficult to bridge that gap in that short amount of time. Scarlet it remains to be seen how may stopgap measures they can have. At some point have to deal with the issues at hand. I was a talk about new york. Jfk airport had a bad couple of days. You have the weather, the bomb cyclone that delayed flights. Yesterday a water main broke in the International Terminal and that caused cancellations as well. Infrastructurehe challenges we face in this country. The president has promised in the past to do something on infrastructure. He hinted he will be releasing plans this month. What we know about how much by and there is on spending for infrastructure . Intoe jfk situation plays the statements in the past, he is said and airports are like third world countries. The democrats and republicans have not come up with a formula for how to fix the infrastructure problem. Democrats want more federal spending and a publicprivate partnership. It is not clear where the president lands. He has said he wants a major increase in spending and believes it is something that could lead to bipartisanship. This could be one area we could see more of him leading him for the democrats position to boost infrastructure projects. Scarlet thank you. Managing not to be upstaged by a little squirrel. So cute. Up, selling cancer fighting drugs, can the company stay on top . We speak with the ceo of roche pharmaceuticals. This is bloomberg. Scarlet this is bloomberg markets. Julia time for the Bloomberg Business flash. A look at the biggest business Google Engineer fired after criticizing the companys diverse today and gender policy is countersuing. He filed classaction complaints in california. He alleges he and others were harassed over political views while working at google. Goldman sachs and riverstone are buying Natural Gas Pipelines in western texas. Cost 1. 6 billion. Saleis the second regional as demand for natural gas sores. Retail investors are buying the most stock since the bull market began time years ago. They surged to a second monthly record as investors add stock holdings. Its the longest buying streak for the brokerage firm. That is your business update. Scarlet President Trump arrived at National International airport ahead of his remarks to the American FarmBureau Annual convention. We will take you to it live. He is the first sitting president to address the group in 26 years. This is a big part of his base. They have a lot they want to listen for including reauthorization of the farm bill. Crop insurance is a big concern. Nafta withdraw as well. We will continue to monitor his actions. Here he is arriving big leader in pharma drugs. Three big drugs are coming off of patent protection. , take it away. Daniel, you are the health care conference. There is a lot of anxiety over the future of your cancer franchise. This is an exciting time for cancer care in general. Than sixad more medicines in the last 10 years. Most of those in the cancer field. Cancer immunotherapy is making a big breakthrough. We have patience with kidney cancer. Why is it that people see about the drugs coming off patents. Are andwhere you others, the growing competitive threat, there are a number of other things i could go through. You talk a positive gain but investors dont see it in the same way. It is a natural business dynamic him you have a certain patent life, and you have competition. We fuel our pipeline and our portfolio. This is why i am excited. Producing in the field of cancer but also outside of cancer. We showed a significant benefit for patients. Overall in cancer and outside of cancer our pipeline is producing at the same time. What is it investors are missing . Through the first few quarters of the year, half of our growth came from three new medicines. The benefit they are giving patients, plus the number of readouts we have in our pipeline, my conversation are, they get it. They understand these new medicines are coming and they are changing the standard care. We talked about they come off ,atents and, Scott Gottlieb speeding up the approvals process and introducing more. I have confidence our new portfolio is going to be able to offset the other products. Sayn fact, exactly what you , the fda has worked with companies to move them very fast. Roche has the most out of companies. In the best interest of patients, it is allowing us to to these new medicines patients faster and quicker. Will be set here last year we spent time talking about drug pricing because candidate trump talked about drug pricing. President trump has a knot. The pressure is still here. Where are you feeling it most . Struck pricing is an important topic and it is important in the context of the entire health care span. We are part of the solution to Overall Health care costs. Hemophilia,cine for which is groundbreaking, has shown a reduction in hemophilia patients in terms of believes they have. A more convenient dosing regimen. Once a week, once every two weeks, and ejection they can give themselves versus iv infusions. Certainly it is a benefit for. He health care ofi am not accusing you pricing your drugs too high. What im wondering is, in this ,nvironment, also in europe where are feeling pricing pressure the most . Pricing pressure has been part of our business for decades. Is it worse . We have to make sure we have significant medical benefits for patients. When that happens idle think the pricing pressures works. We have good discussions with payers and physicians and efficiently eventually patients. Those are the discussions we are having. Your company is known mostly for cancer. You do other things. Look forward five years from now. Given what you know about m a, what is the revenue going to look like . In that time i think we will clearly still be the leading company in cancer medicines. The investment we have in cancer , 20 medicines in r d now we are looking at, lots of other targeted medicines lead me to believe we have an era of cancer care that is going to allow us to cure more and more patients. Cancer will continue to be important. Neuroscience, infectious disease, hemophilia. We have Significant Research programs with huge unmet medical needs. I think you see a portfolio mix that is different and 510 years. There is a great deal of excitement and excitement about genebased therapies. Clearly they are going to transform medicine over the next many years. Have you seen anything yet that is beyond both of those . Anything that is going to turn the industry upside down . There is a lot of new technology. They are going to benefit patients. Something we dont talk enough about is the importance of how medicine is being digitized. The availability of Health Care Data is like it has never been in the past. Large robust data sets. We can make meaningful advances in how we do research and development. , if youized Health Care Like being empowered by data in a different way than it has been , and promises to make a big advance for patients, as much as any Big Technology that may exist in the scientific round. Were going to hear more from joe biden. That is right. Scarlet, we are here in san francisco, more coming shortly. Julia we look forward to it. Scarlet, some breaking news . Scarlet we do. The white house is said to be close to picking a nominee for the advice chair position. It has been vacant since october. The white house is said to be close. Julia we will prove in that to you when we get the nominees. From new york, this is bloomberg. Bloomberg. Scarlet joining us now, happy monday. We saw each other now record highs. Thoughts broadly about this . A robust earnings season expected. Next foure over the quarters. We saw that in 2011. Really robust expectations hilton to earnings now. You have a great trade for us. We are looking at what to do in the first half of the year. Something we want to position ourselves for, valuations. At the twowe looked growth rate and put that against low implied volatility where we can get some upside. On,names that will focus western digital. Top of the list. And by 87 go to july 5100 call spread. The other, morgan stanley. The report next week. We will look out to july, one of my 60 strike calls. A great opportunity to set up this exposure for the first half, taking advantage of low volatility. Thank you. Back to you, scarlet. Scarlet still ahead, counting down to President Trumps remarks at the American FarmBureau Annual convention in nashville, tennessee. He will begin speaking at about 4 00 eastern time. This is bloomberg. Lets get the first word news this afternoon. The Washington Post is reporting special Counsel Robert Mueller will likely seek an interview with President Trump. The president is comfortable comfortable participating in an interview. However, they say the president s attorneys may be reluctant to have him be questions without clear parameters. 11 princes and sonssts include two of the of almarai. Has verified a voice message from a member of the royal family family, calling accusations against the princes lately false and not believable. Election they say an will be held at the end of march. They have not announced you will seek a second term and he is expected to run and win. The two koreas