Solidly higher, all in rally mode with the dow up more than half a percent, and the s p 500 up, and nasdaq up the most at 9 10 of 1 . For the dow and s p 500, the tech heavy nasdaq up for the first time in five days, putting in weekly gains, and this week we have had the pattern of bind the open and selling the close. Back to last friday, the pattern started last friday of the s p 500 higher midday only two fall. Todays trading higher during the day and finishing lower yesterday, recite a dramatic reversal with highs up more than a percent. We see right now the s p 500 flirting with that top trendline so it will be interesting to see whether or not buyers can hold on. One source of bullish tailwind, rates trading higher. That has been the case more recently when rates are trading lower the has been a tale stocks. Tailwind for that is the degree of sensitivity, but in the last five days we have had strength. There was also a bullish the apartment of energy report, and this was interesting because the risk off and selloff, we had oil trading lower, but now we see a solid rebound for oil. Stock split at 5 , and finally higher, and they did say they are ending their Discount Program with the nra and that could be weighed on gun maker shares. From floridanews governor Richard Scott saint they will put an age restriction on firearms to the age of 21, this in the wake of tragedy in florida. Shareholders of these Companies May be thinking what the president says about that possibility. Keyy the gun debate is a issue discussed at cpac and the idesident delivered a whit ranging speech. For teachers to be armed at schools. Dont want to have 100 guards standing with rifles all over the school. You do a concealed carry permit, and this will be a major deterrence because these people are inherently cowards. The former chairman of the conservative movement joining us now. Thank you so much for joining us. How does this years event compared to the past and didnt become a rally for Second Amendment rights . It is more into a pro trump support mechanism than a conservative movement rally. The president did a good job in his speech today. The nra has always been embraced by the Party Conservative movement and has always believed in the rights of the Second Amendment. This thing at the school in south florida, my home territory, has been a to the point to bring up serious discussions, even for the most ardent nra supporters. My sense is the issue of age ownership that Governor Scott anded out will resonate will be fluttered for discussion. Get a court order to disarm a person west emotional or mental stress . Both of those issues will likely get somewhere. I dont think it will get much further than that. Shery marco rubio has also talked about raising the age limit, will this be a trend for conservative lawmakers if they publice support of the when it comes to midterm elections . Be a very good test for the nra and lobbyists. Many victories, and in florida, my home state, more than 30 laws have passed in the 10 years that have been supported by the nra. Toing a step back is going be a challenge, even if leaders like marco rubio and rick scott supported. Cpac, imching surprised how much time is spent on guns, and President Trump did address tax cuts and deregulation. His guns the most important problem we have right now in terms of making sure citizens get to five against an fightng government against the overbearing government . It has been the primary subject of the last week and it has repercussions moving forward. The president wants to show he is sensitive to the outrage about the senseless, massive crimes and wants to do something about it. He wants a country to know he is thinking about it, hearing people out. What comes of all of this in terms of proposal i think well be at the state level than federal level. I dont think there will be Much Movement at the federal level but the president and the party dont want to be tacked as unreasonable and times of despair like this. David what else is on the agenda . You have made progress on tax cuts and deregulation, the president is taking it for that. What else is left, you have pretty much all you need . The issue of infrastructure is coming up in the midterms and it is a tough challenge for conservatives. Aggressivent had a proposal that involved a lot of money and of course the hurricanes came and you had 200 billion in relief. At least 100 billion for sure, and we loaded up the National Debt a little bit with tax reform. Im a big conservatives have much of an appetite for a massive infrastructure bell unless there is an appetite for an increased gas tax. That is going to be debated, you need 200 or 300 billion dollars more in order to meet the president s stronger guidelines. More unlikely based on todays mood and the growing concern among conservatives in congress. Not a lots there is of appetite of increasing the National Debt, so youre going to have either one of two things. And infrastructure bill passed with 20 or 30 billion more than last years amount or you are going to have a big picture infrastructure bill passed. And the mood for conservatives seems to be the fbi is public enemy number one for them. Fromuld see a guilty plea rick gates, a Trump Campaign eight, as early as today. How will this issue impact the agenda . Pretty amazing to see the gop and the movement confronting the fbi and Law Enforcement in particular. They are pillars of support for us, we have stood for that and it is a liberal element to america, especially College Campuses threatening these institutions. Wehink it is fair to say, need to pick up a few bad apples from the fbi and everywhere else. To challenge the institution itself and weaken it at a time america has criminal challenges involving cybersecurity, Mass Shootings, drug epidemics. It is rock to focus in a negative way, we need an fbi that is energetic, poised, recruiting the right people to its ranks, comprised of 35,000 people. Peoplecause four or five fell down on the job or havent done the right thing, it is not a good idea to take on this whole institution. It is bad for america and we hope we dont make it political fodder for this election this year. Ill, former chairman of the american conservative union, great to have you. Up, as the nation wrestles with the issue of guns, will talk to the governor were 20 children were murdered. That is next. This is bloomberg. Shery this is balance of power. David four first world news will turn to mark crumpton. Robert miller has filed conspiracy counts against former Trump Campaign eight, rick gates. Gates were a letter to friends and family saying he had a and would plead guilty today, a hearing is set for 2 00 p. M. Washington time. Imposed on north korea, Steve Mnuchin said the move is part of what he calls a maximum Pressure Campaign to inhibit the regimes googler and Ballistic Missile programs. The regimes nuclear programs. People of the said field transport and limit the regimes ability to ship goods through international waters. Mark the Trump Administration also advised sanctions against any nations that might enable shipments of goods to and from north korea. Ifsident trump says democrats regain control of congress and midterm elections, some american liberties and Constitutional Rights will be at liberty. He made the comments today at cpac. They will take away massive tax cuts and your Second Amendment. By the way, if you had have one, would you have, Second Amendment or tax cuts . Second amendment, tax cuts. It at the to leave Second Amendment, i dont want to get into that battle. No other trump said president has cut so many regulations in their entire term. Calls to boycott the nra has grown higher with twitter users demanding Companies Cut ties with the group. The nra leaders attacked the media and democrats claiming the fallout from last weeks Florida High School massacre was being politicized. That will and Corporate Partnerships with the nra will include First National bank of omaha, enterprise car rentals, and wyndham hotels. 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. We are going to stay on the subject of gun control. It was five years ago that 20 Young Children and six adults elementary were murdered, and it is tragic how many times since and there have been Mass Shootings in the United States. Welcome the governor at the time, dan malloy joins us from washington. It is great to have you come up i wish it was under different circumstances. In the aftermath of the tragic the worst effort to control laws passed in your state of connecticut, you limited the number of bullets and you added weapons to be banned, but did make a difference . Is connected safer today . Gov. Malloy it is substantially safer, and connecticut has seen the largest drop in Violent Crime of any 50 states in the nation. There is a reality and connection between guns and death. Clear as evidenced in schools, churches, movie theaters, campuses. Reality. A w if you live in connecticut you are less likely to die of a gunshot that many other states. We are one of the five lowest death rates as a result of guns. David does this mean states can handle the problem without a federal government . What is the likelihood someone can buy a gun somewhere else and across the state line . Gov. Malloy that is a big part of the problem and i plead with people in the congress in the United States to close loopholes that exist in respect to sales that arent covered by a grant check. Background stop cutting the fund for background checks and giving guns to people if you cant process the request to purchase in three days. There is we can do on a national basis. States can make themselves safer but the reality is we still see this in connecticut. When we recover a gun from a street crime, it is more likely the last place we trace it too is a state that had a loophole that applied, not in connecticut or neighboring states but down in virginia or South Carolina or north carolina, florida, that sort of thing. We should collectively try to change our culture to one that puts more precedent on keeping children safe than having School Buildings used on weekends to sell guns. Shery you said it, it is part of the culture, when im with the United States it shocked me that gun ownership was part of American Culture back by Second Amendment rights and freedom. How do you change that . Av. Malloy one death at time, one school at a time, one theater at a time. You look at the protest of the young people who survived the shooting, and their dedication to this effort is really quite extraordinary. What we are seeing is things building one on top of the other, we had sandy hook, san bernardino, that other School Shootings in oregon and elsewhere. This builds and this shooting in florida following one of the deadliest mass murders in america in orlando and following a matter of weeks that happen in las vegas where bullets were raining down on people. Per 10 seconds because of the modifications people can make the semi automatic guns that make them the equivalent of automatic guns. Thats changed the culture to one of life and make sure people understand we can take steps to make people safer. If you live in alaska or alabama your chances of dying as a result of a gun or five times greater than they are in connecticut. Omove onvernor, let me what from guns and talk about connecticut. We continue to see in the business environment, many corporations are moving away from connecticut. Massmutual the latest saint they will move their headquarters to massachusetts, calling it the best place for us to grow. Why do these businesses not get the sense from connecticut . Their headquarters was in massachusetts and what theyre doing is moving in operation they purchased from the Hartford Insurance Company years ago and moving that massachusetts. The reality is we have lots of businesses moved to connecticut. Nbc sports is broadcasting from stamford, connecticut. Insurance companies are moving in apple, one of the biggest insurers of ship rate moved from another state into connecticut. We are growing jobs, we have seen the creation of 75 to 80,000 jobs while i have been governor, having said that demographic change our behavior. We live in a different world, a more competitive road, and that is why we enlarged the university of connecticut Engineering Program by 70 to make sure that those great jet engines made by companies in our state continue to be made. We are the third most countries concentrated stake in aerospace, we are a leader in manufacturing and health care and leader in insurance. And hardll that tough stories because youre going to lose a statebystate competition just as you are going to win, but there is a lot of very good things happening in connecticut. David lets put a quick point on that governor, you have stories of General Electric leaving. Gov. Malloy how is that working for ge right now . I want you guys on a regular basis and you guys cover ge. David so you would rather not have General Electric . Is that we are saying . Gov. Malloy no, if the state wants to pay a company one hundred 60 million to move the equivalent of 200 jobs, that is their right to do. Quite frankly we will compete for those jobs and a regular basis and happy to do it, but the point is we went a lot of those competitions, something that doesnt necessarily get told as frequently as the losses. David which takes you to the point i want to get to, how do you compete, not just massachusetts, a georgia, tennessee, places that offer various things like right to work or lower tax. Gov. Malloy i think we compete for the jobs we can compete for. Process they kohls or dig holes or steel manufacture. You compete for the things you can compete. Not only are we the third most concentrated state in aerospace, it is growing in our state. In our state time were seeing advanced manufacturing growing in our state and these are jobs paying very good salaries and a lot of very good benefits. Shery governor, thank you so much for joining us. Governor Dannel Malloy of connecticut find us from washington. Plenty more coming up. Shery welcome back. The chinese season has birthcontrol of a group charged with fraud as a continuum the corruption crackdown. Tom mackenzie filed this report from beijing. Chinas efforts to tackle the Financial Risks that the its economic foundations, regulators are saying their pocket to intervene in illegal operations that that in the company solvency. The move puts the Chinese Government in control of the conglomerate with more than 300 billion in assets, including waldorfastoria and Strategic Hotels and resorts. Withoute toxic finances triggering Systemic Risks, and maybe political fallout. The company was also once in talks to invest in a key new York Real Estate project owned by the Family Company that President Trumps soninlaw owns. Next, more on china. Live from new york, this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. David this is balance of power. Shery lets get a quick check of major averages with the dow up 6 10 of 1 and all sectors in the green led by energy and tech. U. S. Stocks rising with the 10 year yield even though all the increases. Gaining 8 10 of 1 , but keep an eye on the index because for the past four sessions it has faded in the afternoon session. David we will turn it over to mark crumpton. Mark the governor of missouri says he made a mistake but didnt commit a crime. Ofis indicted for invasion privacy and to take optimizing photo of a woman theyre gay extramarital affair to your he was elected. He blames the charges on operative help pay for at least part of the new u. S. Embassy in jerusalem, u. S. Officials tell the ap that the Trump Administration is considering the offer from republican megadonor come up at state Department Lawyers must first determine the legality of accepting private donations for the project. Exchangelhi, india, to agreements of security, trade, and Higher Education in a joint press conference with canada, they joint conference, the cult india interested partner and friend for cooperation. A partnership must create jobs and help families get ahead. Theovernments, we have responsibility to set the right thateters for economic benefit everyone, not just the wealthiest few. Trudeauime minister softism. Ticism about brexit, andalling those were leaving the European Union is less than 100,000 for the First Time Since 2013. 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. David australian Prime MinisterMalcolm Turnbull is meeting with President Trump at this hour and will cover the News Conference soon, but in the meantime we have the privilege to welcome one of turnbulls predecessors who served as Prime Minister. Today he is coming to us from oxford, england. Great to have you here. I am not going to put you on the spot. Unti what are the challenges and opportunities between the two countries . It is an old and established relationship and australians see america as theirspot. Closest partner in the world. It is a Good Relationship and i think from the u. S. Perspective, we with the british have been seen as two of americas closest allies. Number one is the strong strategic alliance, a Defense Alliance goes back to 1951. The question that comes to peoples mind today is given our alliance obligations, what is President Trump precisely planning on north korea . Because where america goes will have profound implications for australian policy as well. The second is trade, australians were disappointed by the president s decision to withdraw from the transpacific partnership. Australia has joined the japanese and their leadership to tbt 11, that is everyone else except the United States accepting the original agreement, and i think obeisance i think that will be the subject of discussion at the white house. Is tpp something the United States can revise partnership and . There is talk to United States can come and come but is that too late, has the train left the station . I think the train has never left the station. He jumped the 11th, whether it is japan, australia, or vietnam, we welcome the United States to join now or in the future. But our best understanding from washington is that it is not a prospect. It is a real change for the administration, then fine, the doors open. The key is how you boost trade in the pacific when the global trend, and i fear regional trend, is heading in a protection a list direction . Shery when it comes to trade, china is the largest trading turner by President Trump and administration and have classified china as a rival power, will this become an issue in relations with australia and the United States . I dont believe so. Always been able to walk and chew gum at the same time. The facto bones about that our principal, our primary, and longstanding Security Partner is the United States of america. It has been that way since pearl harbor and not likely to change. It has been that way for more years than any of us can remember. I think the key question though with ouring that economic relationship with china. You are right to point out that one third of australian exports go to china. Intermission of these economies and we believe in the future we can have a balanced relationship between australia and china. Our Security Policy differences, managing our values based differences on the one hand, while prosecuting copperheads of engagement on the other. Exports, butt Chinese Investments. Insurance is the taken over by Chinese Government and worth taking a look at acids in australia. How cautious should countries like a still you be . When i was Prime Minister in austria, we want to investments from around the world. We had Japanese Investment korean investment, and the chinese is the latest. We have one of the most open economies in the world, but we dont say no to projects that are of international interests. Im sure the current conservative government has done so as well. The questions of bonds, i think it is extraordinarily important to the current Chinese Government policy of consolidating financial risk, but they are seeking to do is to deleverage private debt within the chinese economy. They are a significant private player and engaged in some adventurous investments around the world and has used some creative financing and support of those investments. So it is significant here is that the chinese insurance regulators have decided to bring under direct state control and the next 12 months to sort out its own internal financials so it is not to create Systemic Risk for the rest of the chinese financial system. David if you are an investor or trading partner, is this good news or bad news we had deleveraging private debt, it sounds pretty good, it is a form of reform, but on the other hand, is as a reminder that it is the end of statecontrolled economy . It is not a market economy we recognize it . It cuts both ways, as you suggested in your question. On one hand if you look at chinese economy from a macroeconomic perspective, but is the number one risk or number one concern that has been identified by the ratings agencies, imf and others about the chinese economy . Public andxtent of private debt which is accumulating within the chinese economy. China as acting on that and it is yet to be seen how successful that will be. Decision isng significant. On the other hand, if you happen to be party to a deal in a investment with a third country or otherwise a shareholder of enterprise, then i presume you are scratching your head as to what is going to happen. There is an element of country risk involved, so will be interesting to see what happens to the anbang share price. David lets go back to north korea, we had an announcement from Steven Mnuchin about new sanctions on north korea and we had ivanka trump going to korea and were told today she was read on the sections on the sanctions. Right now i think the two pronk approach by the administration is the right direction. I would bef what doing now, and given that evidence of sanctions and right forit is secretary mnuchin to ratchet up pressure by bringing in these additional sanctions. On the other hand, i think it is directly important and significant that there is a channel for dialogue which is i dont know what the role by President Trumps family will be. But i think general mcmaster will have his own channels as well, but i would sublease say that this channel of diplomacy should be kept open, at the same time, sending a clear message that the United States and its allies are not be messed with on the question of north koreas continued policy of nuclear proliferation. Shery im gun control, we know australia past the National Gun Agreement after a mass shooting, orwhat may be possible ands anything that could be replicated here in the u. S. . As an australian who now and in newe u. S. York, i am appalled by the lack of general American Leadership on the question of gun control. The nra has extraordinary political powers in america. I havent seen anything like it in any other country in the world where politicians run a mile when the nra says what its policy is or who it may target in a particular district. Our laws in australia, we are a big country, we have vast open spaces, lots of wild animals, index warning shooters fraternity. I know them well, but no one has ever said to me while have been Prime Minister that we need; automatic weapons in order to pursue the hunting pursuits or pursue our sporting shooters are ts and competitive events pursuits. I get my predecessor in australia in bringing in these laws because since then, touchwood, we have not had a major incident, nobody beyond the military needs a setback automatic weapon. It is nuts. David it is really great to have you here. I want you to stay tuned for live coverage of the President Trump and Prime Minister turnbulls conference coming up at 2 00 p. M. Eastern time. This is bloomberg. David this is balance of power. More developments of the Robert Miller investigation with the special counsel filing new counts of conspiracy and light against over Trump Campaign aide rick gates and paul manafort. He is poised to plead guilty according to a person familiar with the matter. Bloomberg reporter greg farrell joining us now. How significant is this . Very significant and so far one key figure in all of this is paul manafort, and manafort was hit with a new set of serious charges yesterday and his righthand man, the man is pleading guilty to a conspiracy going back to 10 years. Is tos everything there know about manaforts business dealings and is going to turn on him. It doesnt look like the news for manafort, but at the same time, russia, or is it ukraine . Everything i have read has you with the ukraine and not russia. There is some nuance because there is some read james in ukraine. F you c oligarchsas ties to were close to the kremlin, and that is why emails in the past indicate past communication in 2016 between manafort and ukraine. Despite the work with the ukraine government, there were clear ties, one step removed from the kremlin. Doesnt mention anything about the russia collusion issue here, are they going to connect the dots later as the investigation goes on . Yes, i think that is what the hope is. If there is any collusion between russia and the kremlin and the Trump Campaign, it had to float through the sky. Is guy. S cameignificant thing out about manafort, while the was working for the Trump Campaign. If he was cutting deals or deceiving banks to get loans, and needed money, why was he working at no salary for the Trump Campaign . Theres a number of questions that draw interest in this. David two things we know is that mr. Mueller moves fast and he gets guilty pleas. Is manafort went to trial or plead guilty . Good question because his public statements have been he is innocent and has nothing to offer. However, gates knows a lot and could put pressure on him and the question is what kind of pressure is there for manafort . He faces extreme legal jeopardy. David thank you greg for being with us. Time now for the stock of the hour. General mills announced it is productsue will opec blue buffalo pet products. This is a whole new area. Incredible, take a look at General Mills strategy in my terminal. Is where slump, this the acquisition comes in because they had quarter after quarter of negative sales recently, and they had a 2 increase in growth. They are hoping this will turn around, and we have a pipe chart showing where they get revenue on General Mills. No longer just cereal anymore. You have tried to diversified their portfolio. Back in 2016 they got a your yogurt. Yogurt is higher than regular foods that you and i eat every day. Shery what kind of sales will blue buffalo bring to this . Digits are high single and are annualized at 12 , really good when you compare to what may be their Parent Company now that has negative sales growth. What is interesting when it comes to pet food, a consultant said the population of pats is going to 200 , the rate of human population. Is more money on pet food than their own food eating at home, so incredible statistics there. Pet food it could cereal as the most readytoeat category. David i feel guilty about my poor dog. [laughter] david guns and expensive dog food. [laughter] up, we expect comments from President Trump and australian Prime Minister. This is bloomberg. David this is Bloomberg Markets balance of power. Shery in minutes, President Trump and australian Prime Minister welcome turnbull are set to have a conference. Margaret, tell us what is on the agenda. What the australian Prime Minister and President Trump will be talking about today at the conference is the Strong Military alliance, trade policy, how to deal with china, north korea. Domestic so many developments, and well get to questions on the u. S. Side, that agenda overtaking everything from gun control to the latest developments with rick gates, paul manafort, and the mueller investigation. Jerod kershners security clearance, the list goes on and on. There is a full agenda of questions here, and the president will have as much time as he wants to shed light on as many subjects he wants. What about before you get to that part, are they going to announce anything . Does the staff have anything teed up . I think part of what there is to talk about is north korea, trade is on everyones mind, and for australia there is a longerterm push to encourage the u. S. To rejoin the tpp. I dont expect a big announcement on that, doubts early be news, but luck, the idea that business for both of these men is to convey the economic tiesong between the two countries and military ties between the two countries. Look for statements on that alliance. Shery which is interesting given the hiccup we had last year when the legendship for started. That is right, it have to do policy undergee president obama. But we are told those issues are resolved, and then the background familiarity with personal fightr between the two, turnbull has become a close advisor President Trump in a western world where some of those alliances with other major u. S. Partners have very much been tested. Friendshipimportant not just for the president but western allies. When they talk the President Trump, they know that Malcolm Turnbull is someone who can do that. Korea, that is close to australia, what is the approach . The timing is twofold, part of it is the timing of the Prime Ministers visit, and much of it has to do with the closing ceremonies of the olympics and is desire ivanka trump overseas to get this message across. The competition or twist with australia is Chinese Investment in the Stock Partnership with the chinese. Shery margaret, thank you so much for that. We will bring you that News Conference between President Trump and Prime Minister turnbull when it happens at the top of the hour. David you can catch all of our interviews on the bloomberg with the function tv. Live from new york, this is bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Julia its 2 00 p. M. In new york, 11 00 in san fransisco, and 7 00 p. M. In london. Im julia chatterley. Lisa and im lisa abramowicz. Welcome to Bloomberg Markets. Julia we are live in bloomberg World Headquarters in new york over the next hour. Here are the top stories we are covering on the bloomberg and from around the world. Makes another move. The special counsel expanding his charges against rick gates. To start now. Due there are reports you will plead guilty. Talk trade. Rnbull australias Prime Minister tries to convince the president to return to the tpp, the transpacific partnership. They are expected to speak together shortly. And we bring you a special profile of ceo james corbyn. Lets get a check on where stocks are trading right now with taylor riggs. Taylor every time i talk to you, the s p and the dow are near the highs of the day, near 7 10 of 1