The labour partys Jeremy Corbyn is putting pressure on theresa may over brexit. The party leader says he wants a new Customs Union with the u. K. With the eu after the split. That puts labor on the side of most businesses at least Prime Minister may at the mercy of rebels in her own conservative party who want a similar deal. 24 hours a day powered by 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Vonnie from bloomberg World Headquarters in new york, here the top stories from bloomberg and around the world that we are following. Vonnie hitting a high note. Stocks rising to a threeweek high as investors turned their focus to fed chairman Jerome Powells testimony tomorrow. Start your engines. We have an exclusive interview with Aston Martins ceo. And look at the luxury carmakers recent spike in sales and how aston martin is keeping up with the copper kitchen. Competition. And phone wars. Samsung releases the galaxy s nine. Will it be able to compete with apple iphone x . We will answer some of those questions. Julie hyman is halfway into the trading day in just two or three left in february. Julie just a few left in february and its been a surprising month. It was difficult to predict where we are now if we were just a couple weeks ago. We have all the major averages higher. You have stocks higher on the year and certainly we have seen a bounce since the lows of the year after the sharp selloff that we saw. All the major averages higher today. Take a look at the s p 500 year today. Starting in late january we had the steep selloff the s p is up yeartodate and stocks have seem to recover and stabilize at least for now. In terms of how strategists are positioning himself, take a look to the bloomberg. Riding in a note today that the long cyclical short defense of trade is quite crowded and the question is when one should start to close it. Jpmorgan looking at the pmi reading in the United States. Index, manufacturing that is shown here in blue. Typically when it gets to 60, you start to see the cyclicals rollover versus the defenses. That has not happened yet. This is the Morgan Stanley index of cyclicals versus defenses. It is still on the rise, but jpmorgan says keep an eye on it and watch for any signs of it and watch valuations as well. And might be time to close out that trade or at least pull back on it. Pulling back today in terms of some of the groups we are watching, we continue to watch the gunmakers. Brands are trading lower as President Trump meets with governors and the topic of gun control is obviously one that is expected to come up and one that has been much discussed in various states as well as in the capital. The shares have been under pressure on concern that there could be more regulation of guns and therefore potentially lower sales. Finally we are looking at lithium stocks as well today. This is following Morgan Stanley downgraded esculin, which is the middle one here, as well as alamogordo, saying there will be over supplies as lithium target as sqmstart to increase is expected to ramp up mining. A Chemical Company exposed to lithium as well as also getting caught in that downdraft. Shery julie hyman, thank you. Investors are turning their focus to fed chair jay powells first Public Comments. Stocks and treasuries are gaining steam ahead of powells testimony to the house panel tomorrow. Our next guest says the tightening Monetary Policy could take its toll on stocks. A widespread concern there. Ramsey. S now is where do you expect the underperformance to come first . Shot acrossk this the bow that started a few weeks ago might be the beginning of what we would call the distribution or a narrowing phase that you typically see very late in a bull market. Sometimes it can last more than a year up until the end of the bull. I would expect to see some cyclical groups like the transportation stocks begin to underperformed. They have underperformed on this and it could be a tougher time for secondary stocks. That would be the traditional pattern here as liquidity available to the bull market diminishes. Vonnie how much are we distorted in the first half of this week because it is the end of the month, doug . Doug that certainly could be the case. We look at some shorterterm things but not quite that short term. Quite frequently we have been expecting another leg down in this correction. That being said, it has blown up to the upside more than we expected. The key is whether we start a rally leg from lower levels or whether its already in place. I do think we are going to go ultimately to higher highs later this year. The key will be to see if we see that narrowing of the market. That has been a remarkable thing that almost up to the nine your birthday of this thing back in march of 2009 that it has just been so broad. Three and a half weeks ago, we had small caps and everything at new highs. Vonnie glad to have got lowered in with you. With you. T a word in we do want to get to the president of the United States speaking a little bit earlier with the governors. Pres. Trump i think we are going to have another really big one coming up this current quarter. Maybe a number that nobody wouldve thought would ever be hit, but i think we are going to have a very good number because of the stimulus and massive tax cuts that we will all benefit. Whether republican or democrat, you are benefiting tremendously from those tax cuts. Apple is investing 350 billion in the United States. You look at whats going on and its really quite something. You just read a week ago that exxon is now coming in with 50 billion and many, many companies. Also something that nobody expected, they are also coming in with massive bonuses for their workers. Nobody thought in terms of that. We know that everybody is going to get a lot more income and we have seen that as of february 1. Everyone is saying i have an extra 250 in my paycheck. Thats pretty good stuff so we knew that was going to happen. We do not know that hundreds and hundreds of companies, millions of millions of people will get large bonuses because of what we did. One of the things were working on is fair and reciprocal trade deals. Treated fairly. U. S. Governors are not being treated fairly. When i get to tough with the country, youre always going, dont do that. I must say it is more senators and congressmen and women who call. You have not been calling so much. You want to see great deals. We have to make the deals fair. You know, with mexico as an example, we probably lose 130 billion a year. For years ive been saying, for the last year and a half, ive been saying 71 billion, but its really not. They have a tax of 16 and we dont have a tax. At some point, we have to get stronger and smarter because we cannot continue to lose that kind of money with one country. We lose a lot with canada. People dont know it. Canada is very smooth. They have you believe that its wonderful, and it is for them. Not wonderful for us, wonderful for them. We have to start showing that we know what we are doing. The wto a catastrophe. China became strong. You look at it and it was going like this for years and years, hundreds of years, going just like this. Im Great Respect for president xi by the way. Im not blaming them or mexico. Im not blaming anybody except us because we did a poor job for so many years. Im not just talking about president obama. Im talking about many, many president s. , but the wto makes it almost impossible for us to do your business. We lose the cases. We dont have the judges. We have a minority of judges. Its almost as bad as the night circuit. Nothing is as bad as the ninth circuit. Speaking of that, daca will be put back into the ninth circuit. I think everybody in this room wants to help with daca, but the Supreme Court ruled that has to go through the normal channels so its going back in. There will not be any surprise. Its really sad that every single case filed against us is we lose, we lose, and then we do fine in the Supreme Court. What does that tell you about our court system . Its a very, very sad thing. Daca is going back and we will see what happens from there. Deals. Ant fair trade we want reciprocal trade deals. Scott walker has a Wonderful Company called Harley Davidson in wisconsin, right . Great. N they send a mortal cycle motorcycle to india as an example, they have to pay and 100 tax, 100 . Who i thinknister, is a fantastic man, called me the other day and said we are lowering it to 50 . Ok, so far we are getting nothing. He gets nothing and they get 50 and they think they are doing us a favor. Thats not a favor and you know what im talking about. Its a great company. When i spoke with your chairman or the president of harley, they were not even asking for it because they have been ripped off with trade for so long that they were surprised that i brought it up. Im the one pushing it more than they are, but its unfair. India sells a lot of motorbikes. When they have a motorbike, a big number by the way, a company that does a lot of business, so they have a motorbike that comes into our country. The number is zero. We get zero. Brought now down to 50 . Beautifully. Hes a beautiful man. He said i just want to inform you that we have reduced it to 75 . We have further reduced it to 50 . I said, huh . Am i supposed to be thrilled . Thats not good for you people, especially as governors. Its just not right. We have many deals like that. With all that being said, lets talk china. Because china we probably lost 504 billion last year on trade. 504 billion. I think that president xi is unique. He is helping us with north korea, who by the way wants to talk as a last night. You heard that. They want to talk. We want to talk also only under the right conditions, otherwise we are not talking. They have been talking for 25 years. Other president s should have solved this problem long before i got here. And they have been talking for 25 years. You know whats happened . Nothing. The Clinton Administration spent billions and billions of dollars. They gave them billions. They built things for them. They went out of their way and the day after the agreement was signed, they continued with nuclear research. It was horrible. The Bush Administration did nothing, both. The obamaation administration wanted to do something. He told me is the single biggest problem that this country has, but they didnt do anything. It wouldve been much easier in those days than it is now. I think most people understand that. But we have been very tough with them. China has been good, but they have not been great. China has really done more probably than they have ever done because we have a very good relationship, but president xi is for china and im for the United States. And russia is behaving badly because russia is sending and what china is taking out. So china is doing pretty good numbers, but russia is now sending a lot of stuff. I think they want to see it come to an end also. I think everybody does, talking loss tremendous potential of lives, numbers nobody has ever contemplated or thought of. They want to talk, first time they want to talk. And we will see what happens. Thats my attitude. We will see what happens, but something has to be done. Today i want to hear your ideas on a number of critical issues, but most importantly, we want to discuss the Public Safety in schools and Public Safety generally, but School Safety cant have this go on. Im grateful that governor rick scott is here and we thank him for the aftermath in the terrible tragedy of parkland, florida. Our nation is heartbroken. We continue to mourn the loss of some new precious innocent young lives. These are credible people. I visited a lot of them. We will turn our grief into action. We have to have action. We dont have any action. It happens. A week goes by. Lets keep talking. Another week goes by. We keep talking. Two months go by and everybody is off to the next subject. When it happens again, everybodys angry and lets Start Talking again. Weve got to stop. Bump stocks, im writing that out myself. I dont care if congress does it or not. Im writing it out myself. [applause] you put it into the machine gun category, which is what it is. It becomes essentially a machine gun. It will be very hard to get them so we are running up bump stocks. We have to take steps to harden our schools so that they are less vulnerable to attack. This includes allowing welltrained and Certified School personnel to carry concealed firearms. At some point, you need volume. I dont know that a school is going to be able to hire 100 security guards that are armed. Plus, i got to watch some deputy sheriffs performing this weekend. They were not exactly medal of honor winners come all right . The way they performed was frank wly disgusting. One was early and then you had three others that probably a similar deal a little bit later, but a similar kind of a thing. You dont know until you test it, but i think i would run in even if i did not have a weapon. I think most of the people wouldve done that, too, because i know most of you. But the way they performed was really a disgrace. Second, we must confront the issue of Mental Health. Heres the best example of Mental Health. This kid had 39 red flags. They shouldve known. They did know. They didnt do anything about it. Really a bad time. I have to tell you. Nobody bigger for Law Enforcement than i am, but between the people that did not go into the school and protect those lives and the fact that the shouldve been stalled long before it happened, pretty sad. We have to confront the issue and discuss Mental Health and we have to do something about it. In the old days, we had Mental Institutions and a lot of them. You could nab some of you like this and they did because they knew something was off. They have to know that. People were calling all over the place. Used to be able to bring them into a Mental Institution and hopefully he gets help or whatever. But hes off the streets. You cant arrest him, i guess, because he is not done anything, but you know hes like a boiler ready to explode. You just have to do something. You cannot put him in jail because he is not done anything. In the old days, you would put him into a Mental Institution. We had them in new york and our government started closing them because of cost. We are going to have to Start Talking about Mental Institutions because a lot of the folks in this room close their Mental Institutions also so we have no halfway. We have nothing between a prison and leaving him at his house, which we cannot do anymore. I think you folks have to start thinking about that. Earlye to improve our warning response system so that when friends, family, and neighbors do one the authorities about a violent or dangerous individual, action is taken quickly and decisively. Look, you had the one mother in connecticut. The remover how horrible that was. She was begging to take her son in and help them do something. He is so dangerous and nobody listened to her. He ended up telling her and then you know what happened. It was a horror. But she was begging to do something about her own son. Recently you had a grandmother that got to see the notes of her grandchild and she reported him. He was ready to go in for a school. She reported him. And there the Law Enforcement did a very good job. We must pursue common sense measures that protect the Constitutional Rights of lawabiding americans while keeping guns out of the hands of those who pose a threat to themselves and to others. Fifth, we must strive to create a culture in our country that cherishes life and condemns violence and embraces dignity. Now with all that, over the weekend, i cannot believe the press did not find this out. I cant believe it. I think they are getting a little bit i can ever use the word lazy. You dont want to say that. You dont want to give them any more enthusiasm than they already have come up and i cant believe they didnt figure this one. And chrish with wayne cox and david lehman of the nra. They want to do something. I said, fellas, weve got to do something. Its too long now. Weve got to do something. We are going to do very strong background checks and very strong. We have to do background checks. If we see a secco, i dont want him having a gun. There was a time when anybody can have one. Even if they were sick, they were fighting. I said, fellas, we can do it anymore. Theres no bigger fan of the Second Amendment than me and a bigger fan of the nra. These guys are great patriots and great people. Theyre going to do something. Theyre going to do it i think quickly. They want to see it. But we dont want sick people having the right to have a gun. Plus, when we see somebody sick like this guy and when the police want to see him, they did not do a good job, but the have restrictions on what they can do. We have to give them immediate access to taking those guns away so that they do not just leave and he sits there with seven different weapons. Got to give them immediate access. [applause] dont worry. Dont wary about the nra. They are on our side. Half of you are so afraid of the nra. Theres nothing to be afraid of. If they are not with you, we have to fight them every once in a while. Thats ok. They are doing what they think is right. I will tell you that they are doing what they think is right. Sometimes we will have to be very tough and fight them, but we need strong background checks. Of time,g period people resisted that, but now people are into that. Senator,yn, great guy Mitch Mcconnell, paul ryan, and Kevin Mccarthy will hopefully work on some legislation. They started already. John has legislation and we will strengthen it and make it more pertinent to what we are discussing, but he has already started the process. We have already started. The other thing is that we need hard insights. Just in concluding, we have tremendous things happening. The country is doing well and then we have a setback like this thats so har heart wrenching. So heartwrenching. We have to clean it up. We have to straighten it out. It is wonderful that we are setting records in the economy. We are setting records. Black unemployment at an alltime historical low. Hispanic unemployment at a historical low. Women unemployment at an 18 year low. 18 years. Actually i did very well with women during the election. Nobody wants to give me credit for that as you know. And im very proud of that coul t. To me these are credible statistics. Vonnie you have been listening to some of President Trumps comments. He is speaking with the nations governors and will be heading into some meetings. This is the playback from a little bit earlier. The comments having to do with the Florida School shooting and what is to be done now. He said he had lunch with Wayne Lapierre of the nra and said it will be better background checks. He told the governors not to worry about the nra and that they are on our side. If they are not with you, then you have to fight them once in a while. We need strong background checks. Hetalked about mental and how the shooter wouldve been institutionalized in the old days. Lets bring in kevin cirilli. A braided thet media for not realizing he had lunch with wayne left year and had come to this wonderful conclusion that there was going to be better background checks and direct access for guns and ammunition to be taken away from people deemed a threat perhaps. What do we know about this . Is is actually going to happen or something they spoke about over lunch, kevin . Kevin a couple takes away from that. President trump calling on congress to pass some type of gun reform legislation, background check, Mental Health legislation in response to the recent mass shooting tragedy in fo florida. That will become a focal point for this Republicancontrolled Congress as they had that. President trump pointing up Mitch Mcconnell as well as senator john cornyn, the latter of whom has backed off the president s claim to raise the age limit to purchase a firearm from 18 to 21. That said, there does appear to be bipartisan consensus with regard to to Mental Health as well as improving National Background check system, something republicans and democrats agree. No one is going to be completely happy on either side with what gets done. If youre outside of washington and trying to make sense of why this matters to you, it matters because this is now going to be pushed to the forefront of their legislative priority list, which is already crowded by the likes of daca as well. To thent trump signaling republican governors that they ought not to be afraid of the nra and vowing to fight them where they disagree. Shery thank you so much for that, kevin cirilli, chief washington correspondent. Ising up, aston martin reporting their full Financial Results for 2017 and their ceo will be here for an exclusive interview next. This is bloomberg. Theres a look at midtown, manhattan. Live from new york, im vonnie quinn. And im shery ahn we are seeing u. S. Stocks at a three high, the dow being letter higher by tech and financial. The volume is pretty low ahead havingnew fed chairman his first Public Comments tomorrow. The s p 500 is the highest since february 1 and the nasdaq is gaining 8 10 of 1 , rising for a second session. Vonnie lets get to the bloomberg first word news for the afternoon. It marked President Trump telling the nations governors that he would have run into the Deadly Florida high School Shooting even if he didnt have a weapon. The president again finding fault with officers who didnt stop the government. Mr. Trump said that the deputies werent exactly medal of honor winners. Adding that the nation was heartbroken, he said that we need to have action related to School Safety and gun violence. The Florida School shooting may lead to the first changes in gun control laws in a decade. Sweeping new regulations are unlikely. The president and some republicans have suggested tougher background checks and raising the age limit of some gun sales, but there is no sign that they are prepared to go against the National Rifle association opposition. Oppression is fashionable again and fundamental freedoms are in retreat. Those words, today, from the u. S. High commissioner for human rights. He spoke at the Human Rights Council in geneva, asking why moore isnt being done to stop human rights abuses around the world. When an elected leader blames the jews for having perpetrated the holocaust, as was recently thisin poland, and we give disgraceful calumny so little attention, the question must be asked, have we all gone completely mad . Jordanian prince is not seeking a new fiveyear term when his current term ends in august. China is taking steps that could allow the president there to stay in power indefinitely. The communist party is set to repeal president ial term limits that keep the head of state from serving more than two consecutive terms. That would do away with the orderly succession system they adopted after the chaotic rule o tseuse a kong maus tung. This is bloomberg. A car cool enough for james bond, reporting full Financial Results. How do things set cap for aston martin . For aston martin . They just had their results out for last year and it was a remarkable turnaround. Take us through your profitability. Salesmanufacturing, up in , how did it happen . Work, as youard can imagine. In terms of operational efficiencies, the first two years of the plan, we are starting to reap the benefits of the cars, starting with the v 11, v 12. Coming a cadence of cars , meaning that this level of profitability is just the start. David you had been losing money, now you are in the black. The swing is like andy a quarter of a billion pounds. Quite a swing. Down, you were drifting so how are you making more cars and getting more money for it . Retail sales last year were up. Mostly on the back of two things. 11, years in the making. A brandnew car. The 12,rivatives, the the v8, and the volante. Over 5000 cars, all built by hand, all made in the united kingdom. Very charming. We are trying to sell that experience, that lifestyle, to more customers around the world. And it is starting to work. David you put a Strategic Plan in place. Andy the second century plan, we called it. Exactly. How much farther can you take this . Andy there is a long way to go. We designed the plan over the course of seven years into stabilization. Done. ,perational efficiency turnaround, done. Right now we are in the core rebuilding, replacing the three main sports car models. The vanquish replacements will be back in this year. That, that remaking of our core is done. Portfolioe move into expansion. This starts with an suv, making a new facility in wales. Probably followed up by three more cars, a midengined sports car and potentially two luxury sedans, utilizing the name. David when we talk about massmarket, when we talk to general motors, ford, places like that, its all about electric and autonomous vehicles. Where is aston martin in that process . Andy in a different place, but not divorced from those trends. Major Technology Trends are car sharing, autonomous vehicles, connected cars. Connected cars, we cant avoid. Its just a hygiene factor. We made the strategic choice to go after electric cars. We will launch our First Electric car in 2019. We want to lead the luxury segment that technology. Car share, not really appropriate. Not today, anyway. Autonomous vehicles, i have a mixed view. I think that what the industry calls stage one and stage two, the car can park itself and keep you in lane, thats probably relevant. Stage three, i dont think its appropriate to an aston martin. Stage four, when you can have full autonomy, this is something we are looking to develop. Of course, we will develop that through partnerships. Partnershipave a right now with mercedes. They are powering some of your vehicles. As you look at this, it is a big investment of money. Can a small, specialized car company, mindful of the fact of the investment in daimler, do you need to go public with your stock to raise more capital . Andy the answer may be both. Is notevance of an ipo relevant to that particular argument, but we are making a new kind of a company. A company that can survive on 17,000 to 14,000 highpriced cars per year. But it can survive because of its partnerships. Dealaimler mercedesbenz gives us access to technology being developed in a world leading company. That is how we can continue to stay relevant and updated. We are making a new type of company that doesnt rely on 10 million cars per year. It can be very profitable on that. That sort of seven to 14,000 cars per year. Only with a big brother that can help it out. David ok. Andy palmer, great to have you here. He is, of course, ceo of aston martin. Coming up, samsung unveiled its latest flagship, galaxy s nine. How does it stack up against the iphone x . Thats next. This is bloomberg. Abigail you are watching Bloomberg Markets. Time to dive into the futures markets. Today we are taking a look at oil. On the day, oil has reversed its loss, higher, up 7 10 of 1 . The bigger story is over the months, a huge gain. This as investors are looking at opec production cuts, plus u. S. Inventories that continue to decline. Putting it a bit under crude oil. Lets see what the technical suggests could be next. The big crudehad crash in oil. This is following the crash. This is the recovery that we see, a slow rise higher for oil. Lots of volatility. Oil may be up over 30 in the last six months, but it is on pace for its worst month since august of last year. What does this chart suggest is next . A trading range right at the top with sellers saying its pretty reliable. This chart may suggest that oil could in fact drop back down towards 50, maybe even below. It will be interesting to see if that happens. It could suggest, in turn, if the sellers takeover, the fundamentals could prove to be bullish. Lets bring in michael rourke. Mike, thanks so much for taking the time. Oil, everybody is talking about inventories and opec, but what about u. S. Production . Mike it has hit record highs. Thats a big story here. Those are the production cuts that opec made to work off the global inventory glut. This is great, the chart goes back to the 1920 past. Abigail incredible, the power of bloomberg right there. There,he 1971 peak is about 10 million barrels. We are basically seeing a big ramp and u. S. Production and that is what investors are worried about going forward. That this supply can rebuild in the next couple of years. Thats pretty incredible. What is the crowd doing, relative to the speculative on the futures . Risk we have seen this off, risk on trade in the market. To some extent, crude has followed equity markets in the last month. Abigail we have a chart of this, too. Speculatoris positioning in the futures market. We have seen a new record high in net longs. The thing is, usually, you see the run up during the crude production cuts out of opec. People were longer and longer crude on the rebound in the last year. This tends to drive the price of the commodity on the margins. If these speculators begin to unwind in fear of this production coming online in the United States and these record production levels in the United States, we will likely see crude dropped back into the Panel Channel that you highlighted earlier. It typically tends to reverse, im guessing your trade is to be bearish on oil. Can you take it through us using the crude oil truck crude oil contract table . Mike sure. The mosto talk about liquid, the most active, but obviously crude gives you many options. You can see the price is getting lower as you go down the table, right . That has shown up there in the upper left and in the contract curve chart. As the global inventory glut worked off, the spot price rose as the market worked off the inventories. Again, people in the futures markets are worried about that production coming back online and knocking prices down in the future. I would expect it to move back down below 60 again. Expected to be range bound, trading like a typical commodity , where you will see, when it looks like supplies are increasing, the commodity drops and when it comes back in, it will rise again. Your target is below 60. Not quite ready other chart was, but still a bit bearish. Mike a real middle range. Abigail great stuff. Thank you for joining charting futures. Ourie it is time now for latest Bloomberg Business flash. A look at the biggest business stories in the news right now. The ceo of softbanks funds say that ensuring technology is evenly distributed is a top priority for the worlds biggest private equity fund. He spoke to bloomberg at the World Congress in barcelona, spain. We want to empower the consumer. We believe that we are the secular brand for technology, where its not only going to bring access to one billion more consumers around the globe, the internet and the world, but also to the existing consumers, give them Better Services and products, eliminating distance and time, no matter where they live. Vonnie in other news, Credit Suisse fans to move 250 bank positions out of london as the First Investment planning from gets underway. This is off according to philly according to people familiar with the matter. Employees will likely be relocated to frankfurt or majority. Harris was an option after discussions with regulators and government officials. That is your latest Bloomberg Business flash. Shery lets get to a bloomberg scoop. Apple is preparing to release a trio of new smartphones later this year. Joining us now to discuss, from san francisco, mark garman, who broke the story. Congratulations on the scoop. Tell us what exactly they are planning to are planning to release. Another will be significant year for apple in terms of iphone upgrades. Last year we saw three new phones. The eight, a plus, and iphone x. This year at the high end there will be a new giant phone with a 6. 5 inch screen. Making it about one inch eger than the eight plus today. It going to give a big deal, topping the big screen sizes of samsung. Processor. E a faster another piece of significant news is they are going to try. Gain on the lower end right now, the strategy is that the iphone eight and eight plus look very different from the iphone x. The iphone x price at 1000 might be too high for some people, but people dont want the older technology. They will be doing a lower end version of the iphone x. A cheaper model with a glass back aluminum side and a screen made out of older screen technology, but with newer technological innovations, like face id and a home button replaced by gesture controls. Vonnie this is fascinating. Who will buy any of these phones if they already got a 10 . They didnt manage to sell the 80 plus million, but they did sell a good 7 million. The next mark the next update, it wont be that your you think of the jump from the iphone x to its direct successor. But this bigger version, maybe they call it the 11 plus, 10 plus, they decide those things closer to launch, it will be a fairly significant new addition to the apple product lineup. This is something a lot of people have been asking for. It will be positioned as the ultimate mobile device. A computer in your pocket, with a giant screen using spreadsheets, you nails, managing calendars. Split screen applications like you would get in a small tablet. I think that this is going to be a significant addition to apples product portfolio. To tell you, im one of those people. Ive been asking myself when the bigger screens are coming out. The key question is, will it cannibalize the ipad . Will i ever need an ipad again . Mark thats a good question. Apple started realizing a few years ago that they were moving in this direction, separating the ipad lineup into the cheaper models and the ipad pro. The ipad pro has a 13 inch screen, double the size of this 6. 5 inch screen of this bigger iphone. I think that they realized that. That method is to avoid cannibalization. If you are someone using a smaller ipad, like the many, that will certainly be cannibalized if price is no object. Certainly this will be double the price of an ipad mini. Maybe there is room at the bottom of the market, maybe, for kids or people wanting to use it for a display inside of a smarter home. Cannibalization is a key question this year. Vonnie i think im willing to pay. Shery the screens are too small. Shery i like a small one, small hands. Its so hard to read the small phones. So much of what we do on the iphone. Anyways, coming up. The global me too movement, kicked off by harvey weinstein, blaming the company that he founded as he repairs for bankruptcy. Details behind the demise of the studio, next. This is bloomberg. Shery this is Bloomberg Markets pierpont im shery ahn. Vonnie and im vonnie quinn. The scandal plagued Weinstein Company is set to file for bankruptcy after a deal to sell their company was rocked by Harvey Weinsteins sexual misconduct. Partners like netflix have been pulling projects from him in recent months. Joining us now to discuss this a new show securely joining us now to discuss this is [indiscernible] what is this company . That would be that basis for any type of bid, so thats a good question. They have the rights to many oscarwinning films, a huge library of films. Most of them you would know. You know, it also has a Big Television business. It was producing shows for netflix. Harvey weinstein is prolific. Those are its main assets. , as they said late yesterday, they havent been able to reach a deal with the one party they were in talks with outside of bankruptcy, who was willing to do a deal outside bankruptcy, the former Small Business administration officials. It doesnt look like they have come to a deal yet. There hasnt been a chapter 11 filing yet. The new York Attorney general just came out with a statement saying that, you know, they were saddened that there might not be a deal there and he was continuing to investigate the situation and get compensation for victims. Obviously, his lawsuit from last weekend kind of through a spoke in the works for getting a deal done. Who knows, maybe something might happen in the coming days. Well see. Isnt but this surprising, given that we have seen partners and investors just fleeing the company. Anousha if you cover enough restructuring and bankruptcy, this kind of situation, its hard to see a deal outside bankruptcy. Obviously, its already got this civil lawsuit from the new York Attorney general, which details a lot of misconduct. Not only the harassment and potential assaults and rapes of victims, which weinstein has denied to some degree harvey weinstein, that is it talks about, it talks about really sort of bringing in other. Orkers to facilitate that also, having ignored the complaints of people. Its hard to see them really get this company back into shape. Quick question, what happens to victims and any compensation that might go their way, if the company is in bankruptcy . Its possible that they could create some kind of fund for claims in the future. Once you go into the bankruptcy process, it depends on the valuation of the assets. The amount of creditors. He said that hes going to fight for that this morning. We will see. Anousha sakoui, thank you so much. Coming up, we will talk to the nebraska governor, John Ricketts , who met with President Trump earlier today. Vonnie you can go back on bloomberg go to rewatch some interview. Some of our interviews. This is bloomberg. Mom, dad, can we talk . Sure. Whats up, son . I cant be your it guy anymore. What . You guys have xfinity. You can do this. Whats a good wifi password, mom . You still have to visit us. I will. No. Make that the password you stillohave toovisit us. Thats a good one. Seems a bit long, but okay. Set a memorable wifi password with xfinity my account. One more way comcast is working to fit into your life, not the other way around. David welcome to Bloomberg Markets balance of power, focusing on the intersection of politics and the economy. President trump talks gun control with the nations governors, telling him that he believes the telling them that he believes the and i let nra will be on their side. Pete rickets was at that meeting, he will be our guest. We will ask them about guns and trade, with nafta being a critical agreement. Speaking of naphtha, we will get the view on trade in paris with the former president of the u. S. Export import bank, fred hochberg. David lets start with a check on markets. Looks like we have a rally going . Julie hyman is going to take it take us through it. Julie all three averages are higher and have been buildin