Large amount of the countrys population and oil fields. In british judge has upheld an arrest warrant for wikileaks founder julian assange. Lawpent years avoiding the and is trying to avoid exhibition to sweden and is wanted there for questions of allegations of Sexual Assault and rape. Assange were to leave the embassy, he could be arrested. Faces its worst job on record, the port city has delayed three weeks of which they may have to turn off Water Supplies the residents. 4 watero is set to june usage reaching a record low. The South African government has declared a National Disaster in the southern and Western Areas of the country. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Shery i am shery ahn. Vonnie i am vonnie quinn. What the bluebird markets welcome to Bloomberg Markets. Here are the top stories on the bloomberg and around the world. All eyes on inflation with investors betting against the cpi report as fed chair Jerome Powell says they will be alert to any Financial Stability risks. Bring on volatility. After last weeks market correction, trading floors are buzzing again and the recent recordbreaking vix volume. And the big power of Small Business. Live fromy joining us the Goldman Sachs 10,000 Small Businesses summit in washington dc. Now a check at the markets. Julie for the moment nasdaq is higher and take into the green earlier today on the strength of some largecap technology. Amazon rising, apple rising, helping mitigate the kleins elsewhere in the markets today. Declines. If you take a look at the movement in the three averages, we havent seen a Third Straight going back to midjanuary on the three major averages. Have been seesawing without sustained momentum. See theteresting to swings in recent days, and a lot of takeover speculation going on in todays session, or appears to be going on. And we seeres up, big swings in twitter can to be connected to some sort of speculation, and honestly nothing has materialized, but shares are trading at their highest going back to the summer of 2015. According to wall street journal, there are in talks with walgreens to perhaps a choir the theyamerica source also reported that amazon has approached hospitals about being clients for its businesstobusiness services, bradstreets, coming out with earnings that beat estimates. The could be worth just as much as 153 a share in a takeout after the company made management changes. You may explore Strategic Alternatives at some point, and those shares up by 10 . And aj at the u. S. Dollar which is seeing some weakness or the past couple of days, yesterday he mode, and today sharply lower it the biggest beneficiary, we are seeing yen buying today as investors take a little bit of a risk off attitude in todays session. Ladies. Vonnie julie, thank you for that. Cloud announced 12 new centers, and expansion will quadruple the current total of three Cloud Data Centers the company operates. Will send it to cory johnson in francisco who has more. The most important is this in the world is what is happening in the cloud and this notion that companies are outsourcing. Andting new businesses changing existing businesses, and oracle wanders into the swamp to compete with the likes of microsoft, amazon, and more. Opening 12 data centers on top of the three you have. I think it is amazing that oracle is in this business that is a very different business than selling software. We feel strongly, we have thepositioned i think company of this, competing on all those levels, i think it is a great advantage and flexibility to work not only with enterprise but also increasingly on the next gen platforms for startups. Customers aref the first running to the service . We have forwarded 20,000 around the world. 420,000rybody customers around the world. Moving competitor ibm is into the cloud including other people moving into the cloud, but so is john the jews, everyone is on the cloud jamba juice is on the cloud. We havethere is enterprise customers were migrating towards clouds, and if im not crazy, there is a massive opportunity on that site alone. Site i am focused on, which is, we see an opportunity opportunities around the globe that are newer markets for us that we havent participated as much. What you mean . What do you mean . Have college students, young adults, people starting companies, millennial entrepreneurs, taking risks, and democratize want to make oracle accessible and amenable to them in the way they want to consume like they do on other platforms. How is that different than the old way . If it ist substantially different, but for us having the platform as a service and infrastructure as we believe to be, nextgeneration capabilities. Yet i started ecosystem capability growing all over the world. We now have the means and the pricing and the product and availability and capability to give startups a product they can use. It isremarkable, remarkable, this notion of starting a business, my can work for a company that didnt exist. Mightu work at google, bother my daughter can potentially start. I talked to a college student, and if abc ever came in, i said dont go to a corporation, go to a startup. I would never take that experience on someone elses dime, running a startup is not for that make of heart think heart. T faint of game, ais a big stakes couple of Global Players are going to dominate and we intend to be one of those. You guys are with amazon, microsoft, googles efforts, they would say they are less nascent than they are. Ibm, and they are Big Companies taking on these problems. We feel that this is right in the wheelhouse and we are in almost every country in the world with an elite sales team. Talk about that. Oracle salesforce is the most wanted salesforce are most despised across the Enterprise Business in all sectors. What is it that oracle salesforce brings . They are tremendously dedicated, they know how to sell the enterprise and have deep relationships. The challenge is retooling that for the world in the cloud. The pricing and the way things are package than Everything Else and frankly, opening up an increasingly new customer base. Which is again, small, midsized businesses that we see an opportunity. We are making a big effort on oracle digital and bring in young adults to focus on that small and mediumsized business and efforts ive been working on. Amazon cuts prices across the board, like steph curry puts up threes. Margin, strangely, but are you guys willing to compete in price . Price . I want to address that, i will leave that for someone more competent talk about that, but we will be competitive player and will provide a great product at a competitive price. Think you for your time thank you for your time. Cory johnson, our bloomberg editor at large. Coming up, the roller coaster ride for markets and why investors are looking to tomorrows cpi numbers to explain the recent jitters. This is bloomberg. Vonnie this is Bloomberg Markets. Shery investors are bracing for one of the most closely watched inflation reports. Mars index numbers are taking on more importance after last weeks while swings. Compared with 1. 8 in december joining us with more is barclays head of global inflation market strategy, michael, great happy with us. Tomorrows underlying cpi component, are you excited with the headline numbers . We think it will be a little bit of a disappointment, and we think that is where the risks are in the market. The markets are focused on macro numbers that can drive inflation pressures, things like that pickup in growth around the globe, not just in the u. S. But in china and europe. Around the globe, synchronized growth has picked up, the dollar has been falling and that could put upward pressure on imported prices, and you have fiscal stimulus coming to the u. S. From tax cuts as well as tax increase in spending that was announced last week. Yet increase in macro pressures, but if you look at the underlying details of cpi, whether it be food component, auto component, we think that ghertrend is not hir here. We might see some softening ahead. Vonnie does that mean the Federal Reserve will have to consider an increase . Look atwill have to their models and look at the labor market and the pressure that might come up on wages. Looking ats in the economy as indicated by growth, relative to potential, and those things are hitting on all cylinders. If fed is worried that even inflation is not here yet, it might, and Monetary Policy works with long lags. Chairman powell says we will remain alert to any risks to Financial Stability, but what we are seeing in the markets our audience showing this trend that we see historically when it comes to the 2, 5, and 10 year yield spread in a softening through september. Our Market Participants exaggerating inflation and what you expect to see on thursday when we get the 30 year treasury auction . There is the technical factor that you mentioned. Investors tend to come into the market at the beginning of the year in part because that is when many make their allocation decisions. But also because inflation tends to be higher in the first half of the year, and investors think they may be able to capture higher inflation, and sometimes that has been the case, but not always. We think the market is pricing or high inflation at the beginning of the year, so some investors may be disappointed as a result. 285 on the 10 year, is that a headwind or tailwind for the markets . Is not a headwind at this point, but if it were to continue to accelerate and move much higher and financial conditions as the new chair says they are watching started. , whether it be through an increase in volatility, strengthening of the dollar, or a decline in markets, that can dip into the outlook, but the outlook has strong momentum. Mick mulvaney as saying deficits exceeding 1 trillion a year could cause Interest Rates despite. We are on course for that, so how significant what congress does will be impacting the market . We will be watching on the fiscal side and whether growth will be enough to offset recent tax cuts an increase in spending. So far we have the tailwind of growth, but some are thinking that the optimistic view all 3 growth perpetually embedded in those budget numbers are a bit too optimistic. Issues,the treasury has and they can issue more or fewer catips. What do you think will happen . Will think the treasury increase to the front of the curve into next year, borrowing across all Treasury Security goes up. Will bet the increase traded in the front end of the treasury market, and increasing longer issuances as well, but mostly we think that increase in borrowing these will see an increase in bells, the twoyear, the threeyear, and the fiveyear note. That is where we think most of the increase will come. Michael, breaker for joining us. Blackstone dives deeper into some management changes. This is bloomberg. Shery this is Bloomberg Markets. Vonnie another management shakeup on wall street, and Blackstone Investment firm named john gray president and chief operating officer, and as he assumed his new role, tony Jane Williams transition to a new fulltime role as executive vice chairman. Kelly, us now is jason executive editor for global television. Is this a Succession Plan without we should have . This has probably been one of the worst kept secrets in the world of private equity, john gray has long been considered the likely successor to tony schwarzman,o steve the founder, ceo, and chairman of blackstone. Has this them wished the leading real estate investor, so this completes the puzzle for the private equity business as an industry transition to a new generation of leadership. Shery tell us a little about john gray. Great is a fascinating figure because he has never worked anywhere else and came to blackstone at of the university of pennsylvania, the real estate business was not much to speak of in terms of blackstone at that point, and very 15 or 20 years he did someup and of the seminal deals that are out there as he built this big business, whether it was equity business, or the deal to buy and ultimately sell hilton hotels. On the mapt put him for the Real Estate Community at large. Vonnie blackstone hasnt said that this is the Succession Plan, but we are reading a little into this, and Steve Schwarzman spending time in washington dc. Any idea of a timeline of when someone will take his role . We dont have a clear sense of that. Steve schwarzman is incredibly active as a ceo and chairman and he has shifted a lot of his time and effort to being a bit of a global statesman. At this point, from a and theropy standpoint, u. S. President who had has known for some time and shirt a Business Council with President Trump. Also consulted with other World Leaders weather is president xi in china, and that dovetails with a lot of shorts mens activities as a philanthropist, and he great the shorts mens after rhodesel scholars, with the university in china. So the expect Steve Schwarzman to go anywhere, but he certainly has been handing over responsibilities as lieutenants as activities broaden globally. Vonnie the forget his multimillion dollar birthdays as well. Jason kelly, thank you. Goldman sachs summit kicked off today in washington dc, and the Event Highlights the big power of Small Business pretty together Industry Leaders and in theirelp businesses chart for growth. David is standing by with more. We have a special guest right now, you know him as an actor, an author, and he is also a businessman. Tyler perry, great to have you. What about my book . You havent bought my book. [laughter] david tell us about the business part of your life, because you have built a substantial business. Years is not a Small Business anymore. As smallnly not anymore, but it has been incredibly inspiring for me to be here and watch all of these entrepreneurs who are having amazing success. For me it wasnt always that way, it was tough to start, i spit my own money working and saving is a bill collector and car salesman trying to get a playoff the ground, for many years it didnt work, and then in 1998 and thing turns around. I took that into film and television, and owning a studio, and here we are. Come where did the drive to become an entrepreneur . And make great career a fair amount of money, but what drove you to build an empire . My father was a carpenter and would make a hundred dollars and would be excited, but i was the guy who would sell the house after he built it would make 80,000, so i was interested in being the guy who sold the house rather than the guy building it. I think that is where it comes from, but also i like to create a freedom of trying to recreate things and reintroduce new ways to do film and television and things like that. I wanted to be in a situation that fosters my ability to do that. The center of that creative world located in hollywood, the west coast, i spent little time doing business there, but not receptive to other ideas. From the outside, coming in from atlanta, georgia. How difficult was it to break into that plan, that tried . Me is thatgreat for i had this wonderful opportunity to be on tour, doing shows, performing the circuit, which allowed me to garner millions of fans. Try i came to hollywood and to do my first movie there, they said, what is this, we are not doing this . I could do it out of my truck and selling dvds from imy trunk. I am grateful for lions gate let me do it my way. Which has been incredible. David you mentioned lions gate, was someone there was open to you . Yes, mike said we need to do this with you, and since then, it has been a lovefest. What is incredible as having great partnerships have allowed me to build studios and to support all that ive done, even oprah, they have been incredible partners for me, and now moving on to viacom and giving that has happened there. Paramount pictures i am excited about the next chapter. David you kept your feet firmly in atlanta, why is that . Atlanta has always been home to me. This is the Promised Land and this is where i will build my dreams, and have the support of the governor and the georgia film commission, that is pretty and all this incredible film and cruise coming up in georgia, and so many people 9000 people go through the gates outside of our studio working, and has been phenomenal to see. David the Media Industry is going through a huge transformation right now and we see it almost every day, particularly over the top with direct to subscriber and computer delivered and video driven on your mobile device actually. How is that affecting your business . How do you prepare for that . Tyler being a content provider has allowed a lot more avenues and revenues because people are consuming content and some of the different ways on some different levels. Im excited about it. Im from the generation that wants to watch television, but my son is always looking for an ipad. Whereyears, i dont know it will be, but i think its very important to take it as the country and technology pivots to stay on the cutting edge and not just be so ingrained in this is how its always been done that we are not open to change. Got to be open to change. David how do you learn to be a successful businessman . You did not learn it from your father. Did you surround yourself from people who knew it . How did it come to be . Tyler i paid for a Harvard Education 50 times in the amount of money that ive lost in mistakes. Trial and error. I made a lot of mistakes and then i started picking up the phone and calling people and asking questions. Its been great over the years to be able to call oprah and say im dealing with this. She says i went through that in 86 and heres what you need to do. To have those kinds of people in my life and being able to ask questions and get information is extremely helpful. David for the people in the audience who have not made those mistakes yet and are starting out, whether its a Small Business or part of the day corporation, give us an example of something you learned a lot from that you have to make a mistake in in order to say i know how that works and im not going to do that again. Tyler accounting with taxes the first user started making money. I realize my sister keeping the receipts in a folder and trying to do taxes that wasnt necessarily going to work when you have 400 employees and we are talking about a billion Dollar Company here. Learning to let go and understand that people know what they know at that level and learning to know when its time to go to the next level i get somewhere help. David tell us about what youre working on now. Black panther is very much in the news these days. Tyler black panther was the first movie to shoot on the stage at one of the new stages. They did their research there and i was really exciting for me for that movie to be the first one there. David theres a lot of buzz around the fact that there is such an emphasis on africanamerican actors and characters. Does that feel like an opportunity to you . Do you think its besides the point . Tyler ive been aware of it from day one and that is why ive been able to build this. Usiness africanamerican people are huge market that has been underserved. All of a sudden there is a surge of people realizing understanding of the research and the data proving that africanamericans are consuming a lot of content. I think its a great and wonderful opportunity for somebody people who have never had a chance and an opportunity to be able to express themselves in talent and storytelling. Its wonderful. David is that an indication that our society is beginning to change . To that movie have been made 10 years ago and been successful . Tyler no, i dont think it couldve been. Theres a new energy with the millennials who are more openminded to every kind of person and every kind of race. I look at my son, who at three years old still has not seen color. Ive tried to keep him from that as long as i can. Its a wonderful thing happening right now. David you now are a role model to others. What do you try to impart to your organization . What values, what character, what integrity how do you do that in your Large Company . Tyler im working sidebyside with them in the trenches. Im there with the crew and actors. We are all in it together. They see me working really hard. They see me smiling having a good time. We start the morning with prayer. Its not mandatory because i dont want to get sued, but we start the morning with prayer. I just want to foster an environment where everyone can be themselves and be excited and come to work. You should see these kids coming to work when they come through the studio gets. Their eyes are like saucers. Its a really phenomenal thing. David thank you so much, tyler perry. Really good to talk to you. I am going to buy your book. Tyler i will send it to you. [laughter] david back to you. Shery you will have to buy that book. Theres no way around it. Vonnie david westin, fantastic interview. Shery he will have a very busy day because we have even more from the Goldman Sachs 10,000 Small Businesses summit. Goldman sachs Ceo Lloyd Blankfein will join us 3 30 p. M. In new york and 8 30 p. M. In london. Lets get to the bloomberg first word news this afternoon. Mark barton has more. Mark Senate Majority leader Mitch Mcconnell says the time is now to address the plight of the dreamers. Called on hisy colleagues to immediately submit any amendments they want considered in the debate on immigration. Senators have had plenty of time to prepare. Theres no reason why we should not reach a bipartisan solution this week. But to do this, we need to get the debate started, look past making political points, and focus on actually making law. Mark the gop proposal would provide a path to citizenship for about 1. 8 Million Immigrants living in the u. S. Illegally as well as 25 billion for border security, which includes a border wall with mexico. The Russian Foreign minister is accusing the United States of trying to maintain control over eastern syria. He said today that the u. S. Has taken dangerous unilateral steps. He believes americas military operations are eroding syrias territorial integrity by supporting power structures that are independent from damascus. He says moscow has raised these concerns with the u. S. In sweden, the trial is underway in the case of a man who confessed to ramming a stolen truck into a crowd in downtown stockholm. The april 2017 attack killed five and injured 14. The man is charged with terror related murder and attempted murder. He told officials he wanted to punish sweden for taking part in the fight against islamic state. The prosecution is asking for a life sentence. Africanricas Ruling National Congress has decided to replace take of zuma, but the party set no timeframe for handing over power to its nearly to new leader. Zuma has agreed to step down, but still he wanted to stay in office for up to six months, which the party considers too long. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Up, blue apron has struggled since its disappointing ipo last year, but the ceo signals the worst is over for the company. Its our stock of the our next. This is bloomberg. Shery this is Bloomberg Markets. \ i am shery ahn. Vonnie i am vonnie quinn. Time for our stock of the hour. All over the map and slightly higher now is blue apron after the Meal Delivery company beat fourthquarter estimates. Abigail doolittle is with us. What happened . Abigail truly all over the map. Earlier today blue apron up 25 and now up about 5 and investors trying to figure out what happened. They beat revenue estimates interestingly less than 1 . This country has been really having a hard time from its ipo last june. Investors are taking anything that they can get really in case of lowered expectations. We see the stock down from the ipo down 66 . The ceo did signal that perhaps the worst was behind them. The big issue is the fact that the company is bleeding customers. At the end of 2017, they had 746,000 customers. That is about 100,000 last and what they had in 2016 some numbers and not going in the right direction. They are really making attempts to cut costs, especially around their marketing costs and they are bringing those into line. Food costs under control so maybe things will really turn around. I personally have a hard time imagining wanted to use a food delivery service. I know other people have used it. Have you used it . Vonnie ive not, but you actually have to cook it afterwards. Shery thats it for me. Vonnie whats the point . Abigail i want to go to the store and pick it out and make sure its fresh. Vonnie abigail, i know that you have been comparing this to snap and twitter as well. Abigail its pretty consistent. Six month ago people were calling twitter dead and the stock was in the gutter and the snap was the same deal. This is not the only company that has been down and out, but theres a big turnaround in this fourthquarter reporting season. Btv 8686. G twitter put up a great quarter. In white we see twitter. Withis an arbitrary start an ipo from blue apron. That twitter has absolutely soared after a strong quarter. Snap has had a bit of a recovery. Is still sagging, but nonetheless, you have these down and out Companies Left for dead, but now there some hope at the end of the tunnel. We have taken a look at this chart before that quarter, suggesting it could go higher and that chart confirms that twitter to go sharply higher. Bloomberg lp does have a breaking news network on twitter called ticktock. Vonnie back to blue apron for a moment, are investors thinking that amazon might be in some way . Abigail they have a lot of competition from amazon fresh direct. I think there are still fears that Amazon Kindle the pressure them even more. I think this is a case of a company that maybe should have never ipod. The initial talk was maybe 14 or 16. When you have next green down the initial Public Offering price, it suggests that demand is not very strong. The stock is now less than five dollars start and it would probably support that. It is a competition issue and the timing around all this just not so great. Those brave enough to get in initially probably not liking it as much. Working out a huge bear shortage here as a lot of people are pretty bearish and that is one reason why the stock is down. Shery abigail doolittle, thank you so much. Vonnie moving on now and its time for the latest Bloomberg Business flash, a look at the biggest business stories in the news. Investmenths senior strategist is normally known for being bullish on the stock market, but she is now urging caution as s p 500 index rises to record. She spoke today to bloomberg radio. You need to have valuation support to be at sustain high levels because if its already priced for perfection, there can be any number of factors that will knock you off kilter. I think that is what has happened. Vonnie mcdonalds is saying it can get more customers by acting like chickfila. According to internal documents reviewed by bloomberg, the chain has launched an initiative called better chicken. Mcdonalds is taking steps to make its chicken sandwiches and nuggets better. The goal is to make the home of the big mac a toptier chicken restaurant. That is your latest Bloomberg Business flash. Breaking news President Donald Trump is hosting a meeting with members of congress on trade. This is from a little while ago. Lets listen to what he had to say. Pres. Trump certainly discussed in great detail on the campaign trail. And many other industries where we had taken advantage of by other countries. I alluded to it yesterday, too. Last year i directed the secretary of commerce to investigate whether steel and aluminum imports are threatening to impair u. S. National security. You see what has happened with our steel and aluminum industries. They are being decimated by don dumping from many countries. In particular one, but many countries. They are dumping and destroying our industry and destroying the families of workers and we cant let that happen. Secretary ross submitted the result of the investigation last month. My menstruation is now reviewing the report and considering all options. Part of the options would be tariffs coming in as they dont steel. Dump the United States would make a lot of money and our Steel Industry and aluminum industry would come back into our country. Right now its decimated. I will make a decision that reflects the best interest of the United States, including the need to address overproduction in china and other countries. Yet countries that are so overproducing and what theyre doing is dumping it on us. You look at empty steel factories and plants and is a very sad thing to look at. Ive been looking at them for two years as a went around campaigning. No matter where you go come you look at them and see what happened to u. S. Steel and these other companies. They were the giants and now they are hanging on for their life. I look forward to hearing your views and i would like to have some of you speak. All havey you do pretty strong views on this. I look at it to ways. I want prices down, but a want to make sure we have a Steel Industry and aluminum industry and we do need that for National Defense. If we ever have a conflict, we dont want to be buying the steel from a country that we are fighting. That doesnt work very well. We wont have any conflicts, but we still have to consider that only have to look at the National Defense and looked at the Steel Industry. We cannot be without a Steel Industry. We cannot be without an aluminum industry. What we are talking about is tariffs and or quotas. I think maybe roy, would you like to start . Do you have any suggestions . Roy, we do need to be careful here that we dont start roy we need to be careful here that we dont start a battle over terrorists. We buy a lot of aluminum and steel as well. Thats from bass boats to beer cans. Theres a lot of aluminum out there. We have an aluminum manufacturer that close down. Its reopening under new management and so clearly we are concerned about those new jobs, but also concerned about all the jobs whether its in the electric steel area or the aluminum area. Very price sensitive. Pres. Trump i understand that very well. I do want to tell you we just got this notice. General motors in korea announces the first step in necessary restructuring. Announce todayto that it will cease production in may ofits plant 2018 and moved back to detroit. You dont hear these things except for the fact that trump became president. Believe me, you wouldnt be hearing that. They are moving back from korea to detroit. You saw chrysler moving from mexico to michigan. And you have many other companies that all want to be where the action is. The big tax cuts had a big impact and kevin knows that may be better than anybody. Had a big impact on that decision, but when you see that General Motors we have a very bad trade deal of korea. Very, very bad trade deal. Its a deal that in confident that some but he couldve made a deal like that. We have a horrible trade deal with korea. Before we do something with that because we are negotiating the trade deal with korea, we will either negotiate a fair deal or terminate the deal. Before we do that come already General Motors is coming back into detroit. That is a really significant statement. Many others to follow from many countries. Mike, go ahead. That 2000me tell you people were laid off in my district in 2015 and a steel plant thats been operating for over 100 years. The concern that we have is that steel plant produces what is known as the Oil Country Tubular goods. Ctg, when we are doing exploration like that in oil, 200 andns dumped an overabundance of that particular market. Because of that, we are not able to get those gallons back. That group of people there pres. Trump where do they go . Mike they are coming from korea now that theyve turned up. Unless we use the power under 232, because if something goes south, now all of a sudden while we are trying to come energy independent, these plants dont turn up overnight. Weve got to try to do something for longterm. Pres. Trump mike and most of the people at this table, that was done by the last administration. 150as supposed to produce to 200,000 jobs and it did for korea. For us, it produced nothing but losses. Its a horrible deal. All you have to do is look at it and you know its going to be bad. The korea deal was a disaster. It was supposed to be good for us and it turned out to be very bad for us. Butare one example of it, there are many examples over the country. General motors moving back to detroit is a fantastic bank and assigned of many other companies to come. Mike pence, do you have something to say . I want to thank the republicans and democrats for taking time to be here and their profound interest in this issue. Is about our economy, but its about National Security. The president directed a 232 reviews to determine whether or not our National Security has been affected by the dumping of steel and aluminum. Today is very much the president s desire and our administrations desire to hear from each of you and the perspectives that will also inform the decisions that the president will make. I think it is fair to say that we all support National Security. I think that is evidenced by the recent budget agreement that the president helped drive and republicans and democrats have supported for historic increase in our National Defense. We also support american jobs. We very much look forward to your counsel as the president approaches his decision and i appreciate the bipartisan spirit of this meeting and the conversation that will follow. Pres. Trump really as mike said, i want your from both sides. This is why we have a lot of great representatives, both democrats and the publicans. I want to hear from both sides before we make a decision. You may have a higher price and it may be a little bit higher, but you are going to have jobs. In other case, you may have a lower price, but you will not have jobs. It will be made in china and other places. Those are big decisions, but to me, jobs are very important. Todd, do you have something to say . Todd i represent a state thats not only a major manufacturer of steel. Steel and solar and others that are manufacturing, but we have the downstream users you alluded to. Clearly understand the need to balance the two. I think the main target and i will speak plainly will be china. They are violating the International Rule and stealing our inne electoral property. Pres. Trump we have spoken to them very strongly. We have something coming up in the very near future that you know. We have told them it just cant continue. We have a trade deficit with china that i inherited, by the way. We had a trade deficit of 504 billion. When you look at how well they do and how many bridges their building and how many jets they are building and fighter planes, we did it. People that sat in my seat allow them to do this. We are not going to allow that. We are talking to them right now very strongly. Hopefully we will have a great relationship, but we are talking to the very strongly. Its a big percentage of our deficits and the money that we have lost in the jobs that we have lost to china is unthinkable. This is over not just obama. This is over many years that this is happened. Thank you very much. Thanks very much, mr. President. I would urge us to go cautiously here especially with section 232. As you know, our defense needs consumer about 3 of domestic steel consumption. I think it is implausible to believe that we are not able to meet the needs of our defense industry, which is absolutely essential. Imports and 2016 were 16 of domestic consumption. The vast majority of the steel we consume, we affect produce ourselves. This is the way i prefer it. Of the 16 . Wn to 2 so a very small portion. My main message pres. Trump they were shipped to other countries and their steel will come in from other countries so you cannot see where the steel is coming from. Senator toomey any country that is violating our trade laws and agreements go after them. Pres. Trump thats all countries. Omey invoking National Security when i think its hard to make that case invites retaliation that would be problematic. Shery you were just watching President Trump speaking with members of congress. That was senator pat toomey. They were speaking about trade. About 232 cases on steel and aluminum. President trump saying the steel tariffs are an option to counter dumping that the u. S. Is being decimated by countries in this measure. Trump also saying that u. S. Steel companies are hanging on for their lives. He talked about also just talking about trade and how the trade deal with south korea is a bad deal. Reciprocal tax. He was talking about an import tax and he is saying that may not happen. Vonnie probably not. Who knows . Still ahead, Goldman SachsCeo Lloyd Blankfein live on the globe an Goldman Sachs 10,000 sl businesses summit in washington, d. C. Its a do not miss interview takes place at 3 30 p. M. Eastern. A quick reminder that you can catch all of our interviews on the bloomberg by typing the function tv. You have all the charts and interviews and Everything Else. This is bloomberg. It is 1 00 in washington and 2 00 a. M. In hong kong. I am shery anh. And im david westin. Welcome to Bloomberg Markets balance of power. Shery hero the top stories we are following. Take abounce around and policy from the massive upanddown swings we have seen over the past week. President trump tackles trade, saying that u. S. Steel companies are hanging on for their lives. We look at the latest on potential tariffs as well as the brewing battle over infrastructure. After making a big comeback, michigans economy faces new challenges. We will have an interview with michigan governor rick snyder. Shery lets get straight to the markets. We continue to see