Platform outside johannesburg. It was the second train crash in the area within a week. Last weeks accident killed at and injured over 260. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Shery im shery ahn. Vonnie and im vonnie quinn. Welcome to Bloomberg Markets. And injured over 260. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. Shery here the top stories on the bloomberg and around the world. Debate. Immigration taking center stage as President Trump meeting with a group of 20 lawmakers today. House Speaker Paul Ryan singh republicans want to solve the issue. We head to washington for the latest. Ethics whirlwind. Fx whirlwind. The pboc scrapping the countercyclical factor for the yuan. After shelving his hedge fund plan bitcoin champions mapping out a new opportunity. More on the bloomberg scoop later this hour. Vonnie breaking news on microsoft. Saying that ship fix may significantly slow some servers. This is a fascinating statement. Microsoft saying the greatest impact will be on corporate data servers and that windows 7 and a and earlier will be the ones that are most affected. Its interesting because it looks like the slowdowns could be more substantial than intel itself has indicated. The ceo of intel was speaking yesterday and he said the problem may be more pervasive than first thought but he didnt discuss the degree of impact. He just said some machines would be more affected than others. The stock of microsoft is not reacting hugely. It is still up about. 1 . Intel stock down about 1. 5 . Fix mayt thing the chip secretly slow down servers about 10 . Abigail doolittle is with us now. Abigail we have another day of record highs. The dow and the nasdaq putting in a new set of alltime highs. The dow and the s p up modestly. The dow is leading. The nasdaq up the least. Corporate profit outlook is helping shares plus ahead of earnings season set the complacency that nothing could go wrong. Katie stockton at btig says that technically conditions are overbought so be prepared for the possibility of a two percent to 4 pullback. Relative to a bear market we havent heard anything along those lines. For bonds this is a different story. Longtime bond manager bill gross janus says the bear market in bonds has been confirmed. Beense the downtrend has broken. From a technical standpoint thats not much of a breaking considering there are other areas it has risen and popped back down. This chart may suggest the bond bull market is in place but it is interesting to note that ill saying ill gross is the 10 year yield has moved very little. In yellow we are looking at the bloomberg dollar index. In white we are looking at the 210 spread and that has narrowed at about 56 basis points as the twoyear has simply risen higher. That seems to certainly be weighing on the dollar. We have both the dollar and the 10 year yield higher. That appears to be helping the Regional Banks. We are going to see some nice strength. The Regional Bank index of 2. 3 . Best day in a month. Lots of names trading hires. These companies are more sensitive to move in the 10 year yield. Markets singing a familiar tune in the new year. Global equities have already added 2 trillion to the market cap all within two weeks of the start of 2018. Could it be too much of a good thing . The chief Market Strategist says that sentiment is becoming excessively optimistic. He joins us now. What measures are telling you that there could be too much exuberance in the markets right now . The headline sentiment indicators like the Investor Intelligence colbert ratio is at bull ratio is atbear they seem to be a little bit stretched as well. This seems to be confirmed in the bond market. In credit where spreads between highyield bonds and treasuries are at a 10 year tight. Things have gotten a little bit stretched. Are so manye measures and you could really use whatever measure you want to make whatever case you want. Its about conviction at the end of the day wouldnt you say . Yes. Even if we do are so many measures and you could really use whatever measure you get sof put back somewhere in and along here i think its important to note that in our view it wouldnt rivers represent the end of the bull market. The underlying fundamentals are quite strong matter where you look. We are seeing good Economic Growth and it seems to be accelerating. Youre seeing very strong earnings growth. The upward revisions are just now starting to come into the bottom of analyst forecasts. Wereopdown strategists ahead of things in the wake of the passage of tax reform. Only within the last week or so it seems the analysts bottomup reports are starting to catch up and thats giving equity markets a second wind. Also contributing has been a softer dollar. We saw with the pboc just scrapping their countercyclical factor for the yuan, the yuan just took a dive. Should we be bracing ourselves for a stronger dollar than we initially thought for this year . Its a critically important question. My view is the dollar is likely to be a little bit stronger this year than the consensus seems to believe. We are of the view that the fed is going to raise rates three times this year. Believeet seems to around two based on percentages. We are a little bit more aggressive than that and if we highlight theill contrast between policy in the u. S. And the eurozone and japan. I dont think either of those Central Banks are anywhere near starting to pull back from their excessive accommodations. The dollar is likely to catch a little bit of a bid. More than the market thinks. Actually if you take a look at the chart on the bloomberg terminal you can see that its not just about u. S. Equities. Equity markets all across the world now showing overbought signs and flashing that with a you dont think Central Banks around the world will be pulling back to soon but we have already seen the boj cutting longterm bond purchases anch was also taken as excess single. How much risk is there for shifts overseas that could affect the equity markets . Risk in thetainly a risk is i dont think so much that you will see tightening per but rather the removal of an important buyer of bonds in light of excessive supply coming into the market. This is going to be compounded to some extent by budget deficits in the u. S. Going to be expanding. They are not likely to be shrinking. Bond market is going to have a little bit of indigestion this year. I think its going to be more of a technical sort of supply and demand pressure on the market as opposed to the boj and the ecb shift in policy per se. I think its a long way of thinking they won the inflation fight in either locale. Vonnie investors need to be looking at the pboc and the boj more so than the Federal Reserve or even the ecb. Thats what ive been reading. Is that what you would say from your perch . I would disagree with that. I still think that the Federal Reserve is more important. Becauseon i say that is the u. S. Has been a real engine of growth and a big support for this socalled synchronized acceleration in the global economy. The imf says we will get 3. 7 growth this year and there only assuming 2. 3 from the u. S. We think its going to be 2. 8. I think the fed and what it does is going to be more important and there are some who think that we will get four rate hikes. If we get four thats a big departure from what the consensus view is and thats going to cause some rethink about just how sustainable these equity market multiples are so in my view the fed is really more important. Joy. E thank you, david coming up, new year same problems. When lawmakers be able to crack and immigration deal before the spending deadline friday . Or will they have to punt for a couple more weeks . We will go to washington next. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. Vonnie and im vonnie quinn. Now, aeaking news bloomberg exclusive. One of John Paulsons hedge funds has plunged to roughly 70 over the past four years. The polson partners enhanced fund uses borrowed money to double down on its trades. It is a Merger Arbitrage fund. Year, 40 inast 2016. 80 funded with polsons own money. We will bring you more on this story later this hour. Returned toouse washington yesterday to the same set of problems. Congress is up against yet another spending deadline and immigration is dominating those discussions. President trump meeting with a Bipartisan Group of lawmakers to discuss Immigration Reform today. Will he be able to balance his Campaign Promises to protect the dreamers with a push for tougher Border Security . Chief washington correspondent Kevin Cirilli joins us from the white house. What do you have on that bipartisan meeting today . Far no new details in terms of whether they are going to be able to reach an agreement. The democrats saying they are adamant that President Trump must include an extension of the deferred action for Children Program issued under the Obama Administration also implementing dreamers as they are commonly referred as. Republicans are united in their opposition to that and trying to bolster security along the u. S. Mexico border. They are at a political stalemate ahead of that january theeadline in order to pass partial government funding bill to avert the government shutdown. Vonnie when it comes to daca, dreamers, the president was talking already again about the border wall. Do you see some kind of compromise . What is Bob Goodlatte going to come up with . Great point. At the end of the day, once this cr gets to the senate they need 60 votes to clear a cloture threshold before they can bring it to an actual majority vote. Thats why the president great. At the end of the day, once this is forced to really work with democrats on this. He also is in need of some type of political win ahead of the second state of the Union Address and heading into the february 1 deadline for a budget battle. A lot of moving parts on this. We should note to this is going to coincide with the latest development around the same timing of when President Trump is expected to attend the World Economic forum in davos. I spoke with an Administration Source moments ago confirming that New York Times is forced to really work with democrats on this. Report that President Trump will in fact be attending davos. A reversal of sorts from his previous stance on that in which he said he was not going to go. Fromding to a statement Sarah Huckabee sanders, he is going to be advocating for America First strategies on that. We are talking with some sources who are scratching their heads and wondering what exactly the kind of reception he will get at that forum. Shery whats the likelihood that congress could ignore the whitetrump and house demands just like they did in may of last year . Well, look. I think the white house is going to play a key role in terms of keeping the government open. These are the folks that are going to send over their recommendations for just how much money they feel should be allocated to the various Government Agencies and in many respects President Trump is the best salesman for many of these conservative districts. Ultraconservative districts where he remains highly popular. Its where he gets into more moderate and progressive wings of the Republican Party and more centrist parts the party that hes going to have perhaps a bit more of a challenge especially in states where dreamers remain incredibly popular. The overwhelming majority of americans including in the Business Community and Silicon Valley are really making their case known from a business standpoint about the importance of keeping these folks in the fold. Vonnie thanks, Kevin Cirilli. Time for the Bloomberg Business flash. A look at some of the biggest business stories in the news right now. Janice hendersons bill gross was cited on the companys twitter. 25 year long term lines broken in fiveyear and 10 year maturity treasuries edge of the 10 year u. S. Yield reached a ninemonth high and the five year yield touched its highest level since april 2011. Last week he also said he expects a bear market to be mild. We are seeing the fiveyear at 231. Boeing says it has sent an airplane to set an airplane delivery record. It delivered 763 commercial jetliners. That was driven by demand for boeings 737 and 787 jets. Thats your business flash update. Envisioning the goldman of cryptocurrencies. Bitcoin champion shows his hedge fund plan but he is now looking for new way to get in on the crypto craze. More on this bloomberg exclusive next. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. Vonnie im vonnie quinn. One of bitcoins most outspoken champions plans to build the Goldman Sachs of crypto. He says he will start a Merchant Bank dedicated to cryptocurrency. Erik schatzker broke this story and he joins us now from San Francisco. It feels like just days ago we were talking about his plans to shelve his hedge fund for now. Yes. Outspoken for sure. Brash, yes. Swaggering. He is all of those things and now you can call him ambitious because of this Merchant Bank plan. It was less than a month ago we were talking about mike down the shutting fund. It had to do with concerns that he had about perhaps finding himself in a conflict of tokens for buying clients while simultaneously selling them out of his personal account. This Merchant Bank results that potential conflict because hes taking all of his Crypto Assets ine 400 million of tokens ico and startups and rolling them into this Merchant Bank in exchange for equity. So his interests will be perfectly in theory aligned with those of his fellow shareholders because he is taking this vehicle public. Its a complicated series of transactions but it involves a 250 million private placement. 250 million Canadian Dollars because the stock is going to trade in toronto. Its not necessarily an initial public offering. There is no formal timeline. What is the timeline in terms of is it going to be done in the first half of this year . Very important point to be made. This is not an initial public offering. There is a private placement that is going to happen privately as the terminology suggests. Its going to be in february. If all of the transactions involved here and they include buying a canadian startup called first coin capital and doing a reverse takeover into a canadian Shell Company happen on schedule, this will be done sometime in the First Quarter and thats when we can expect the publicly traded part of this to begin trading on the Tsx Venture Exchange in toronto. Divided everything goes according to plan and Mike Novogratzs Galaxy Digital gets all the approvals we could see live before the end of march. Vonnie when do regulators get involved because you cant just start a Merchant Bank even in your beloved free canada and would regulators get involved want that sort of tinge the whole cryptocurrency idea . You can actually start a Merchant Bank. There is nothing that says Mike Novogratz cant continue to do what hes doing in his family office. He has effectively been running something akin to a Merchant Bank privately. It is going to be publicly traded but lets be careful because Galaxy Digital lp which is what hes calling the Merchant Bank isnt itself going to be publicly traded. Whats going to trade publicly as a holding company. Galaxy Digital Holdings which will have publicly traded shares itself own a piece of Galaxy Digital lp. The publicly traded part is one step removed from regulatory oversight. And it depends on what exactly Galaxy Digital does before it attracts the scrutiny of regulators. One really important point to make, this is happening in canada. Not only is it going to trade but the private placement is happening in canada. Galaxy digital cant market this to investors without running afoul of u. S. Securities laws and the rest of the sec. Thats one reason we will in all likelihood not be hearing from Mike Novogratz for several months because he cant be seen to be pounding the table and trying to persuade americans shery we will have to leave it there. Thank you erik schatzker. This is bloomberg. Live from bloomberg World Headquarters in new york, im vonnie quinn. Shery im shery ahn. This is Bloomberg Markets. We are seeing u. S. Stocks gaining ground and adding to alltime highs. The dow is up half. 5 . Industrials bouncing back from its first launch this year. The s p 500 gaining 3 10 of 1 for six consecutive sessions. It is the highest since 1959. The nasdaq raising earlier. We are seeing the dollar continuing to rally for a third consecutive session. Treasury yields were sent to the highest yield. A lot to do with the pboc because they scrapped the cyclical factor. The yuan down to the lowest in three months. That took a hit on emerging markets as well which is down a quarter of a percent when it comes to currencies. The japanese yen strengthening 4 10 of 1 after the boj cut bond purchases, adding to speculation they may be headed for the exit. Time to get to the bloomberg first word news is afternoon. We are back with mark crumpton. Mark President Trump is expected to attend the upcoming World Economic forum in dots , switzerland. In a statement, Sarah Huckabee sanders said the president was looking forward to the gathering of World Leaders and business executives. President s have rarely attended the event, in part out of concern that socializing with the worlds richest individuals could send the wrong message. Fbi director Christopher Wray says social media is a little more on my radar at the moment. Speaking today at a fbi Cyber Security conference in new york, director ray did not reference President Trump or his recent jobs at the Justice Department on twitter related to the ongoing russian meddling investigation. Wray went on to say if we start trying to worry too much about hope who we will make happy or unhappy, i think that is that way we start heading down a downward spiral. Let the facts go where they may. In Southern California say to people have been killed by a mudslide. Several homes have been swept from their foundations and some residents are still unaccounted for. Mud is flowing into neighborhoods scarred by recent wildfires. Fire crews in Santa Barbara county are russell rescuing residence and searching for others who may need help. This comes as rain continues to fall for from a huge winter storm. China and france signed dozens of agreements today on a variety of topics, including nuclear energy, space technology, aviation, and the environment. And hisch president chinese counterpart attended the signing ceremony in beijing. President xi said the two countries will Work Together and that china will support france and the desire to play a bigger role in europe. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Vonnie mark, thank you. Now back to a bloomberg exclusive that crossed moments ago. One of john polsons hedge funds hedge funds plunged 70 of her last four year. Years. The fund was down 35 last year and about 40 in 2016. Joining us now to discuss is one of the reporters, bloombergs, harmer who helped break the story. It is a merger, how did they lose the money . Over four years, we have seen declines in this fund. The past two years based on some of the pharmaceutical funds this fund has made. Is levered, that means they used borrowed money to double down in the trades and another fund. That fund is down 42 over the past four years, too. This includes tesla pharmaceuticals, they had to cut their stakes there . Cut it by 60 last year. That stock has been down 50 . That certainly hurt the firm. Vonnie at one point, they managed 38 billion worth of assets. Now it is down to 9 billion. 80 percent of that is its own money. Hema when he managed 30 billion, half of that was external money. That sense has fallen to 9 billion, with 80 of that being his, that speaks to the firm as investors are fleeing over the past year. Most of the money is essentially his. Shery what happened to those people that stuck out with him . Hema investors that were in this fund, they have been struggling. That fund having seen doubledigit losses. If you were in the levered up version of that fund, you would have seen twice as much losses. Another fund that is called appear spread fund is up 12 . Vonnie mixed performance overall. It is really what he had started his firm based on. Vonnie i want to ask, do we have comments from polls themselves or representatives . Hema they declined to comment. Shery thank you so much. Congratulations on this. Coming up, we take you to las vegas for to bring a conversation with kazuo hirai. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn. Vonnie the strong holiday sales season is healing our stock of the hour. Rising more than 4 . The most since early last month. Emma chandra is here. How good was targets holiday . I know you were there. They said they saw a 3. 4 increase in holiday periods sale which is an acceleration on the Third Quarter and also a turnaround from last years holiday sale. We have got a chart which shows you year on year comp sales. You can see that change there. It illustrates how target is turning around and what analysts are seeing is this turnaround happening. Something analysts says was encouraging. They were encouraged to see strong store, and a strong traffic. All of this is good for ceo into cornell who is a year the 7 billion turnaround plan for target. This makes things look like he is doing a good job. That turnaround involves things like opening smaller locations in urban areas, introducing more store brands, lowering prices, and expanding their Online Presence. Iery i was going to say, risk your is how big their Online Presence is because i shop so much online. Online sales should grow by about 25 , which is very good. Still half of the growth we are seeing at walmart. Shareholders are thrilled the stock is up. Emma they are. They are doing well. What we saw today is a bunch of other retailers who were not doing well. Who did not have such good holiday seasons. We have some of their stocks up the moment, the likes of american eagle, express come all down. Express down by over 16 . G btv 512 a look at three, this shows you how target is doing compared to the s p industry. You can see in the section here, that big difference. This white line here is target. The blue line is the border industry. Yellow is express. You see a mixed bag in terms of retailers as they come out with their results of the holiday. Vonnie mixed results. Emma chandra, thank you for that. Ces kicking off today, the annual event attracting much of the tech world who gathered to chat Industry Trends and show off new gadgets. One tech giant unveiled a product from headphones to a highend oil in dtv. Were going to send it to San Francisco where bloombergs emily chang is standing by with more. Joining uso hirai from las vegas. Thanks so much for joining us. Sony continues to drive smartphone and televisions. The playstation is still the main driver. What is your consumer electronic strategy beyond playstation . Beyond playstation, which is obviously an important part of our business, we plan to grow well as ouress, as smartphone business. Making sure becomes entry on the higher end part of the market. For example, in the United States for the market, 1500 for tv, we have a 30 market share. The newou have launched department focused on ai and robotics. You have been talking about ai. Is your goal to surpass lets say, google and amazon in ai . I think our goal is to make sure we work with partners such as google, amazon, and others and leverage their technology and combine it with the ai and Robotics Technology we have inhouse to create products that are unique to sony. Japan as anased in example. We want to make sure we continue down that path to have a unique combination that is very sunny asked. Esque. Y whats emily practical uses d. C. For a robotic dog, lets say a year from now . Kazuo first of all, i think we position the ibo as being an entertainment robot. I think the technology we the ai and into ibo, robotics, in different form factors, can manifest itself in two other robots that will be a part of a transportation, education, health care, Elderly Health care as well. It has a lot of different applications beyond being an entertaining robot. Emily a lot of consolidation happening in the movie business with a disney buying those fox assets. Curious what your strategy is given increasing consolidation and how you intend to compete with such a giant . Industry andk the the Motion Picture business is rapidly changing in terms of its landscape. We need to make sure that first and foremost, we have a strong lineup in our Motion Picture releases. And we have done that with spiderman homecoming, jumanji this past week, number one in the United States. We had blade runner, the emoji movie. I think we are in a path to recovery. We also want to make sure we continue strongly in our tv production business where we supply a lot of programming to nonsony networks and companies. Business asrow that well and ride the wave of the growth in the industry. Emily bloomberg reported you spoke to the murdochs about buying those fox assets as well. Why was that an option you wanted to explore . I think we want to make sure that as these deals come into the forefront, that we are able to be a part of this discussions. Whether an acquisition makes sense or not, and whether and to make sure we make sure we are a continuing player in hollywood and continue to explore deals where we feel it could be perfect for the strategy going forward. Emily has sony considered selling its tv studio . Kazuo for now, i think the strategy is really to shore up our Motion Picture business. And then make sure that any of the deals we make in the future but we are in the drivers seat and not in a situation where we have to give up control of the assets we have grown over the years. ,mily sony ceo, kazuo hirai joining us live in las vegas. Thank you so much. I will send it back to you. Great interview. Emily chang from bloomberg in San Francisco. Vonnie President Trump posted a bipartisan meeting on immigration at the white house with members of both parties. It is making headlines. We are going to bring it is headlines. He said they would be introducing an immigration bill in the next few days. He talked about the border wall and said he would like to see funding for that border wall. He said it can be built for less than 18 billion. Lets listen in. Providing Legal Protection for the daca population while also securing our border. Thank you for having us down here. I agree with tom cotton that the American Public is frustrated with us or 20 of the reasons they are frustrated with us is because we continue to couple ngs shery President Trump meeting with lawmakers, 20 lawmakers, including Kevin Mccarthy and senate my door minority late senate my geordie with. It needs to be part of Immigration Reform and that he hopes it will be less than 18 billion over the next 10 years and it can be done in one year. Of ther, it is part white house plan presented to congress. That is more than half of the 33 billion spending blueprint for order security. Hat was President Trump lets listen in to what he had to say when he was meeting with the lawmakers. We have beendaca, talking about daca for a long time. I have been hearing about it for years, long before i decided to go into this line of work. Maybe we can do something. We have a lot of good people that have a great spirit for taking care of people represented we all represent. For that reason, any legislation has to, we feel, accomplish three vital roles. Chairman goodlatte will be submitting a bill over the next two to three days that will cover many of these things. Obviously, if it gets passed, it will go to the senate and they can negotiated. We will see how it turns out. I feel having the democrats in with us is absolutely vital. It should be a bipartisan bill. It should be a bill of love, truly. Each and be a bill of love or we can do that. It also has to be a bill where we are able to secure our border. Drugs are pouring into our country at a record pace. A lot of people coming in that we cant have your it we have greatly stiffened come as a know, and fewer people are trying to come in because we have tremendous numbers of people and drugs pouring into our country. In order to secure it, we need a wall. We need closing enforcement. We have close enforcement loopholes. Give immigration officers the Border Security, agents, the as agents, we have to give them the equipment they need. We have to close loopholes. Include a verys strong amount of Different Things for Border Security. I think everybody in the room would agree to that. I think it is a question of amounts. I think everyone agrees we have to have Border Security. I dont think there would be anyone that says no. Second, it has to be a bill to end chain migration. Chain migration is bringing in many people. Often, it does not work out well. Those many people are not doing is right. I think a lot of people the room, im not sure i can speak to everyone, but a lot of the people in this room want to see chain migration ended. We have a recent case along the west side highway having to do with chain migration. Killed aan ran over, people, and many people injured badly, the loss of arms, the loss of legs, horrible thing that happened. You look at the chain and other people that came in because of him. A terrible situation. The others, cancel the lottery program. They call it the visa lottery. Countries come in and put names in a hopper. They are not giving you their best names. They are giving you people they do not want. And we take them out of the lottery and when they do it by hand, they put their hand in a ball, like probably what is in their hand is the worst of the worst. People they do not want a lottery and the United States takes those people. Again, they are going back to that same person. He came in through the lottery program. They visited his neighborhood and the people in the neighborhood said, all a lotter, we suffered with this guy, the way he treated us from the beginning. We dont want the lottery system. We want it ended. Those three things are paramount. These are measures that will make our communities safer and more prosperous. These reforms are supported by the overwhelming majority of americans from every standpoint, every poll, and they are being requested by Law Enforcement officers. I had a meeting with ice last week. I had a meeting with the Border Patrol agents last week. Nobody knows it better than them. As in example, they say, we desperately need the wall. We dont need a 2000 mile wall. We dont need a wall where you have rivers and mountains. We do need a wall or a fairly good portion. In 2006,ssed essentially a similar thing. A fence. A very substantial fence was passed. I dont know, they never got it done. They needed. I am appealing to everyone in the room to put the country before party. Up to sit down and negotiate to compromise and lets see if we can get something done. I really think we have a chance to do it. I think it is very important. You are talking about a hundred thousand people 800,000 people. Other people infected, including people that live in our country. Maybe the press can stay for a little while and a couple of folks can make statements. I dont mind statements. This is a very open forum. I will say, i really do believe democrat and republican, the people sitting around this table, want to get something done in good faith. I think we are on our way to do it. This is an idea i had last week. Some of ourg with great republican senators. We all agreed on everything. It was a great meeting. Tom, it was perfect. We would like to get some democrats. What do they say . Same, lets have the meaning but lets add the democrats. That is what we have done. I think we are going to come up with an answer. I hope we will come up with an answer for docket and we go further than that later on down the road. Perhaps you would like to say a few words . Thanks, mr. President for inviting us. September 5, you challenged congress. You said we are going to replace daca. As of today, we have not done that. We face a deadline of march 5 which you created with the elimination of daca. We know in the meantime, there have been efforts underway by senator graham and i. We have worked long and hard. Many hours we have put into it. We feel that we can put together a combination of the future of daca, as well as Border Security. Find are elements will democrat support when it comes to Border Security. We want a safe border in america. Period. Ofn it comes to the issue illegal migration but also when it comes to drugs and all these other areas. I will say there is a sense of urgency that is felt by many of us when it comes to this issue. There are many of these young people who are losing the protection of daca on a bit on a daily basis. 1000 and they will lose daca protection. The of them are members of u. S. Military. 20,000 of them are School Elementary teachers. Vonnie you have been watching live talking. This is playback that happened moments ago. President trump meeting with the Bipartisan Group talking about the border wall. Lots and lots of subject their introduce. We also had comments from the they willthat suggest introduce a bill. Lets get more insight as we watch some of those pictures. We will go back to the white house with Kevin Cirilli. There wasy this a lot of goodwill. Will it amount to something truly bipartisan . Does the president have the same amount of respect he did a week ago before fire and fury payment . Came out . Kevin quite in incredible display for nearly an hour. That is highly unusual and very uncommon. The playback of which is going to be dissected, every single word ahead of this january 19 general deadline. There is no deal that has been struck right now. Clearly, you saw the articulation of some of the Top Democrats and they arent they are articulating their point of view. Regulationstend the regarding daca. The president saying there has to be some type of concession or increase along the u. S. Mexico order wall. On the president did get some questions later on in that hour. He even weighed in on the potential vote for an free running for off fouor winfrey running for president. Shery President Trump talking about the physical one not necessarily being across the whole border. Is it looking like he is about to compromise . Kevin i think what he is trying to push for an privately behind the scenes, what i hear from des, they would not have a full wall along the border. They would have an increase in funding for enforcement issues both domestically and the United States as well as specifically along the border. Maybe that wall can take a cyber or drown type of form. Thank you so much for staying out in the cold for us. Kevin cirilli, from the white house. Vonnie a quick reminder, you can catch our interviews on the bloomberg with the function tv. That is tv. You can go back and look at earlier interviews. You can even play along, have a look at the charts that we have made up for you and lots more. Do stay tuned. More Bloomberg Markets, balance of power is coming up next. This is bloomberg. David it is 1 00 in washington, 2 00 in the morning and hong kong. Im david westin. Shery im shery ahn. Welcome to Bloomberg Markets balance of power. With a focus on the intersection of politics and the economy. David cure the stories we are watching. Dreamers and walls. President trump meets with lawmakers of both parties asking them to put country above party. Budget due date. With a deadline looming for congress to come up with a budget, we will talk with dave brat of virginia. Who is in charge . May Prime Minister theresa tries to reshuffle her, but some senior ministers refused to move. What this could mean for brexit. David they are back in session. He has returned to washington yesterday to join the senate and they are facing the same set of problems. Congress is up against another spending deadline. Bureauome our washington chief, cra