Up, and has recouped a lot of losses. Beenlso a big help has stocks trading at a record. As we see stocks here at the highs of the day, and you heard scarlet mention Warren Buffett, ts a cap Archer Hathaway s tradinghathaway higher on the session, and another story on apple that we will be discussing throughout the day is a scoop by our apple reporter sake company is prepared to release a trio of smartphones this year, the largest iphone ever and an upgraded iphone x and a less ed bets of model as well less expensive model. Of thes into the theme tech outperformance we have been watching in todays session. Semi conductors have been outperforming in todays session as well as tech continues to lead gains. There are of number of Telecom Conference is taking place this week so there is of announcements and commentary from this conference is. Volume has been declining to some extent. , you can see the year to date drop and recovery in the s p 500, but volume spiked while stocks were falling and since they have recovered it has now dropped back down. We are seeing the selloff regularly ocher, we are seeing volume running well above averages and we have seen them come back down for what it is worth as we see stocks recover. Julia now to first world news with mark crumpton. Has the Supreme Court handed Trump Administration a defeat on dreamers for now. Forng at deportation undocumented immigrants that buys time while Congress Tries to work out a political solution, but the case could end up back before the high court after an Appeals Court rules on it. A new study warns the trip in the spanish Trump Administration changes to obamacare, payments for insurance plans will go up by an average 18 in 43 states. And those are not limits for comprehensive coverage. Russian president Vladimir Putin has ordered daily humanitarian posits in the fighting of the syrian city of ghouta. The ceasefire will be arranged p. M. En 9 a. M. And 2 00 every day beginning tomorrow and comes after the un security thecil unanimously approved resolution demanding a 30 day cease fire across syria. U. K. New Labour Party Leader speech may have endeared the British Business community to the oppositions postbrexit vision. Stage for potential showdown with theresa may and parliament. Wonderful axes the european markets and maintain the benefits of Single Market in the Customs Union. The brexit secretary promised the house of commons no reduction in rights in standards and protections. Mark Prime Minister may has ruled out a customs with the eu and the announcement that labor wants an agreement that will keep trait with the block tariff free was welcomed by the confederation of british industry. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. Crumpton. An this is bloomberg. Julia 10 year yields are chairng and the fed testimony before congress tomorrow, joining us more is bloomberg chief economist. We know when we talked endlessly about the hawkish shift as a result of chairman powell the bottom line is inflation is giving them flexibility that they need. Inflation or the lack thereof gives them a free pass to really move gradually and to test out and observed the implications both short run and longrun with respect to the tax changes reside end of last year. We know this provides shortterm fiscal stimulus whether it is having a longer run is yet to be determined. It is a wait and see. Scarlet you are looking at the chart which is what the fed looks at. Be inlling will the fed tolerating and inflation overshoot . Some people are saying to. 5 re. L be the upper limit thei carl you could afford to have a but 2. 5, overshooting, bill be taking away the punch fall slowly, but the key to understanding the dynamics behind that is looking at labor pressure. Looking atso than the deflator or headline for that matter is going to be watching the underlying dynamics in the labor market. Of thesun the minutes january meeting, that was Janet Yellens meeting but nonetheless, everyone with the exception of her there was discussion about how to think about inflation modeling. Model, aof a better phillips curve framework meeting the are looking at the labor pressure as the ultimate driver come summer inflation consumer inflation. Is going to cause concern that inflation is sitting up as well. Pressurent get labor scarlet Steven Mnuchin said in uptake inin inflation. Carl in productivity trend. Julia talk to me about some of the language as we look ahead to what jay powell will say. Managing expectations as far as future rate hikes is concerned, but also controlling to some degree the flatishness of the curve. Is that a word . [laughter] going tot the fed is do if we see faster growth, we are starting to see the consensus flirt with the notion that maybe four hikes this year or maybe even five. I dont think the fed wants to do that because the list of growth is going to betray and the touring will become more hawkish by signaling more rate increases on the road and that further language is key because it is signaling the pace we saw in 2017 that could carry through 22018, 2019, and maybe even further. Year, undere per that paradigm, but extending that framework that allows them restrictiver into territory relative to what they have been signaling more recently. By doing so they get less of a flattening effect on the yield curve because if they say they will do a whole lot to aggressively combat inflation, then you will see flatness in the yield curve. Road,ing more down the you kind of manipulate those Inflation Expectations but still signal the fed is on top of things so you can be hawkish without completely flattening the curve. Julia and also financial conditions and reaction we get down the line under anticipating what we see as far as Balance Sheet retraction is concerned. Carl signaling this measured pace this module pace of let mr. Ng, they get to market do the heavy lifting for them. Up inuld see some back yields elsewhere on the curve do the heavy lifting. On top of that, as you rightly note, that Balance Sheet has a tightening affect, ecb looking to do less this year has a tightening of fact. We dont fully understand how that will play out but that could also be leading the fed to do less. Right, crawl, thank you so much. Chinas coming his party and the move that could leave president g to stay in power for decades if he wants. And the relations it has the rest of the world, notably the u. S. From new york, this is bloomberg. Julia this is bloomberg markets. Scarlet china wants to eliminate rule limits to allow president xi to rule until 2023, sinking the continuity and stable leadership. It could lead to significant political risk, and joining us now is Bloomberg EconomistMichael Mcdonough worked for years and hong kong focusing on the asian markets, and my, you said you werent surprised by this, was kind of telegraph the last party meeting. I am not shocked because president xi announced a clear successor to take over in five years, and he didnt really. Was a matter of time before Something Like this happened, i always thought. The thing that might be surprising is it is getting rid of term limits altogether. It is a bit of a surprise. Scarlet why now . Mike when you look at the conditions of china, double Economic Conditions look pretty good, Global Conditions in china look good, he is riding a wave of popularity. When you look ahead globally coming up Central Banks normalizing, the could be bad, but china is going through a deleveraging cycle that could blow up. So you have some stability, the timing seems right and take advantage of it. Putinesque. Very what does it mean for the past, and will there be resistance given that he has done this now or is a sidelined already . Mike i think you want see much nearterm resistance to it. The people who run the country get away with things they can control but get blamed for things they cant control, so if something happens with the deleveraging cycle and you have another capital flow outward capital flow, he is going to get the blame. One of the positive things of having a government that changes every number of years is the way for people to vent frustrations and begin a new leader. They want cap that mechanism potentially. And a greater democracy path to less . Say if it isard to a path towards more democracy, but the essence of term limits supports democracy. There is debate to be had there when it comes to economic reform. Julia they need to change things. Blue mended some good ideas and kick started some big changes that drives the economy. Him the see those out to be a positive. Allowt what does this him to do that he wasnt able to do before . His name cut into the constitution and he has a lot ofyields, so people think about how long it is going to take to reform china, this is a couple of your process. It is going to be a decade. More longer, so it provides more continuity for potentially for more reform agenda to be reenacted for sure. Julia if things go politically wrong for a country ultimately when you are the guy who is in power and you see such a huge consolidation of power, there is risk in that that you are ultimately the only person who could be blamed. Whether or not you create those problems. Risk you take a this change in law, but at the same time one thing working in chinas favor is unlike most countries, it is a large economy but also very closed. More political control of the economy there that you would in the u. S. Scarlet i wonder how you would f thethe chinese takeover of bank. Mike they have been talking about companys practices for some time and you have seen a big runup and outboard investment in china to the u. S. And other countries and some of it was going into silly assets, assets that would not benefit the chinese economy, so the government in china said everybody, stop what youre doing and where passing new rules of what you can and cannot buy, and a couple of other companies where the lead offenders. This has been in the works for a long time as well. Scarlet as an example that needs to be deleveraged. Mike when you look at the mistakes japan made in the last decade, buying Assets Overseas for ludicrous valuations was a problem japan faced and i think president chi saw this and we are talking about a year or two. So, when despite cap in come of government said we are going to rework the rule and they put up a new guideline of what you can and cannot buy. I love the purchases these Companies Make with have been on the do not buy this because it did not benefit chinas economy. Julia is the three pillars targeting these big the message there try to send print we talk about this earlier, what this is ultimately mean for u. S. China relations . Mike longterm it could mean a lot because president chi is someone you deal with for a wild, but i think what really matters is what does the u. S. And president Trump Administration do this year in terms of protection of policies against china . I think the Chinese Government is willing to accept a small threshold of protectionist policies but nothing largescale and nobody really knows where that line in the sand is, i think we need to wait and see what the u. S. Is going to do. A 30 tariff will have repercussions, so cares in certain industries, maybe not. Julia michael with his perspective on machinations in china. Isnext, why the billionaire entering rescue talks. This is bloomberg. Scarlet this is bloomberg markets. Enteringhn malone is to help the biggest radio broadcaster to get out from under a crushing debt load. Intelligence, he wants to sponsor i heart to a chapter 11 accuracy, talk about this because it is a big deal and big surprise. I heart is the biggest Radio Operator in the country and was an incredible Successful Company in the early 2000s as the raider industry consolidated, but unfortunately they went into a leveraged buyout in 2006 just before the financial crisis and put 20 billion dollars in debt, and the company can support that kind of leverage, and the company has been under pressure and we are days away from the Company Filing bankruptcy. Various parties have been talking to each other for well over a year and various creditors in the company and representatives so it looks like john malone is the last minute to potentially throw in a lifesaver. Scarlet a hail mary. John malone is a force to be reckoned with, where does he see value in iheart . 70 of sirius xm and sirius xm also make a play into pandora so he is looking at the audio side of the business. Satellite radio, streaming radio, and maybe thinking of putting those companies together and having a play with consumers on the audio side of the entertainment business. Maybe there is an advertising play in putting those assets together. And the very least he is saying that the Radio Business is still a Good Business the proper leverage and capitalization, not 10 times or 11 times. If you can get the company to that level, then maybe he has a decent business. Julia was never going to be seized. Paul they were quickly raising money and a lot of people got done, and another thing troubling was univision, those owners are trying to get out of that transaction and the company is a much better shape than i heart, but still trying to get liquidity in this market. This is not unusual, this is what we see across the industry but there are companies that have figure out that arent earning by this step, what did they do right . Paul they have stuck to their knitting and have been financially disciplined and have never had a big Balance Sheet and leverage three times or four that, and it is for business that isnt growing much. Be singledigit revenue growth, but you cant put too much depth on these companies and that is what iheart did. Paul sweeney, head of research for bloomberg intelligence, quick note that bluebird radio provides programming to iheart media. Some of the biggest stories. Paying for a lawsuit for its initial public offering. The companys officers and directors violated securities laws and the plaintiffs were arkansas teacher retirement system and employees retirement association. Facebook went public in 2012. The ceo of the worlds biggest Liquidity Fund is saying it is not a source of concern and spoke to bloomberg at the mobile World Congress in barcelona. A lot of the early investors have exited predominantly because we do primary and secondary shares, including uber. Ande early investors exited sold shares to business partners. Scarlet and that is your business flash update. Julia a quick look at the markets right now, major averages up more than 8 and , a strongsing performance and bounce back of all bounce back with the dow high at 1. 5 , and trading at session highs of the u. S. 10 year softening the yield. Will continue to discuss. This is bloomberg. Lawmakers returned to congress this week with a new legislative push for gun reform. The and cries to address nations gun laws, however it has become a partisan issue. Most lawmakers see a potential to get something done by march. President trump meanwhile will meet with the Vice President and agriculture secretary. And Kevin Cirilli in washington. You can follow the latest breaking news on bloombergs tictoc. That is one of our highlights on tictoc streaming live on twitter. From bloomberg headquarters, this is the markets. Headlines ongo to first world news with mark crumpton. Mark President Trump told the nation governors he would have rushed and to eight students and teachers during the deadly mass shooting at a florida high school. He found fault with the officers we did not stop the gunmen who carried out the massacres, saying they werent exactly medal of honor winners. Governor was one of two democrats to address the president publicly and express his concern about arming to respond a worry to School Shooting sake we need less tweeting and more listening. Oppression is fashionable again and fundamental freedoms are in retreat, those words from the United Nations commissioner for human rights. He said to the Human Rights Council in geneva that white more is being done to stop human rights abuses around the world. When an elected leader claims the jews for perpetrating the holocaust as usually done in getsd and this disgraceful little attention the question must be asked, have we gone completely mad . The jordanian prince is not seeking a new term when his current one ands in august. U. K. , pressure is been put on theresa may over brexit and the party leader says he wants a new Customs Union with the eu after the split and puts labor on the side of most businesses and deletes Prime Minister may at the mercy of rebels in her own Concert Party who want a similar deal. China is on the verge of brightening president cheese isp on power president x grip on power will remove the and will complete chinas the parts are political system based on active leadership. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. Are mark crumpton. This is bloomberg. Scarlet Industry Leaders from 35 countries and Six Continents are gathering today for the 27th global conference in hollywood, florida. Also there is danielle. Thank you scarlet, i am joined by pierre, who is the chair of a wellknown mining industry, and has been around for a while, a lot of deals. Obviously, during the commodity downturn there were opportunities for mine streaming companies, and you would give them money for the exchange of streaming productions. Now that times are better, where is the opportunity for streamers . Pierre we are turning our attention to the oil royalty in the United States, the permian and scoop sack. Why is that . Pierre that is where we see the best return, and if we want to , 500 million dollars, there is great opportunity right now. Anything you are actively working on right now . Pierre we are always actively looking at something. What about cobalt . Is that open up opportunities for streamers . Pierre very little, because , 80 of cobalt is controlled by congo, and the opportunity there is fairly too small for us as far as we are concerned. Are you aware of any streaming deals on kobolds deposit . Pierre one is being shopped around in canada. Would that be a valet . Pierre maybe, we are going to look at it. We are seeing interest from apple and tesla in securing cobalt supplies directly. Given that, does that beat into the opportunity for streaming . Is that a threat . Go back to that industry the timeline that people are talking about is way too optimistic and is going to take far longer for the industry to wrap up to anything of significant size. As far as we are concerned, you could talk about cobalt and lithium, but the adoption curve of new Technology Takes 10 years to 20 years, and thereas far asa billion cars out today, 60 million cars being sold every year, a meaty fraction of that is electric cars. Everything else is gas powered. The whole system the Distribution System and how you feel your car is all patrol. Etrol. This thing is blown out of proportion and is going to take longer. The opportunities there are far better. The industry seems hesitant to spend big on m a and building new mines from scratch. Of financing opportunities the Zachary Heron for the new merchant banks does that create for new merchant banks . They dont want to cross the river because they know crocodiles are there waiting for them. There is 10,000 or 20,000, and finally there is another thousand that comes in at the rear end and they start pushing, and the guys at the front and have no choice and they have to jump and they all get eaten up. So is the push . Pierre when investors say, show growth. They are all saying no growth, we are going to give you margin and dividend and buy back our stock, but dont ask about growth. Growth. That is going to last a year, but where is the growth . They dont have any. Is that why stocks havent benefited fully . Pierre part lee, and part of partly, and a part of that is disinterest. Yet cryptocurrencies, cannabis, all kinds of industry exploding, and the gold prices flat. Where would you get excited . We will leave it on the question. Pierre you have got to get excited. Back to you, julia. Julia great interview. Coming up, the next move the berkshire ceo says he wants a big deal after a quite a b17, and more in our deals report next. This is bloomberg. Scarlet this is bloomberg markets. Is now time for the deals report, more challenges for chipmakers. Press negotiations spectrum cooks up a 10 million deal, and the George Foreman grill maker agreed to buy a charging, and we have warned buffetts 116 billion worth of cash on hand. Where he will put his money next. Qualcomm you with us,. Com, i stumbled onto the name their. Re. What is next . Expecting then real fireworks, and you are going to see qualcomm came out today and said maybe we want and we are fears of antitrust and there is a deal to negotiate. But we will give you access to our butts and the you come in and do an ndn, and mark come came in and said this is a cheap trick and dont want this is not a negotiate and think there is a reason to go ahead and have to vote. Wants to appear conciliatory but they have not changed anything at all. Julia you have shareholders behind the scenes going, guys, we can do a better job of running this. Our colleagues in the west coast published this morning that qualcomm shareholders are fatigued with the company. Think itt necessarily is the perfect takeout price, they dont necessarily believe all come over time will be able to get to that standalone value. So there is fatigued among shareholders, with many ultimately pitched a qualcomm. Your take onnt spectrums takeover of a charging group, what is the driver behind it . It is an intercompany deal because it is a company with larger shareholder merging, and the driver seems to be primarily anding up ownership something other shareholders have been pressuring spectrum to actually do. There is also tax benefits. Isa statement says there measures to complete. Scarlet and Warren Buffett has a ton of cash in hand and is inching to use it. What makes a finding in acquisition so difficult for the company . There is a lot of thinks being too expensive and too much dislocation in the market and irrational buying, etc. What makes it difficult is he has wondered 16 billion and he wants to do Something Big outside of issuance. Of things is expensive and competitive so it is hard to get into the process that often likes, which is a private deal which is him and no one else in the room. There is no auction and no leak, and we dont see those types of deals. If you are a public company, there is so much traction in the market, but why would you sell to one buyer . Would go out and find a market share. The environment is challenging for Warren Buffett, and on top of that you have one point something trillion sitting on the sidelines thomas or even if you find something to do, the chances are that there are other forces who can interrupt the deal. Julia this is a month many cycles. Scarlet so he is waiting for a correction, essentially . Bloombergs ed hammond, thank you so much. Speaking of Warren Buffett, the etf industry has something for everyone and one inspired by Warren Buffetts philosophy. Morningstar etf trades under the ticker moat. Longterm competitive advantage in the industry, whereas Warren Buffett describes it, moat. Pharmaceutical Companies Make up more than a fifth, and amazon and these are broad but vaguely traded fund, and have returned as much as 140 before stumbling this month and has almost 1. 5 billion in assets and costs 48 basis points and gets the green light of that bloomberg etf stock like system. Exchangefor more funding news, be sure to watch etf iq every wednesday. This is bloomberg. Scarlet this is the work markets bloomberg markets. A Company Called level of villages is making it a reality and helping kids and teachers use video messaging to collaborate with students around the world and you can think of it as a Penpal Program for the next generation. Tonights want to talk, i sat down with ceo and cofounder to talk about the program and how it is helping to globalize the classroom experience. They are learning from each other and one of the most Amazing Things we see from the company is the constant communication between teachers. They are teaching the exact same course, for instance, our chemistry class, every thirdgrader across the board. As a matter if you are in zimbabwe or oklahoma city, you are learning about the water cycle. So they are teaching the same curriculum and able to communicate with each other and give each other hence and aboutts are able to learn the relationship to water and what a great impact that has on students. Scarlet how does it work if you connect to classrooms around the world, there are time differences, and hong kong is 12 hours different than the United States. And it works in our favor will tell you why, we combine everything in a package for the schools and teachers. We have professional Development Training so they are trained on competency. Digital literacy skills, and argument a projectbased curriculum and are given a Global Network and all three of those together are wound into proprietary global platforms. Studentslatform, the are virtually introduced to each other and have their own profile and they send each other video. Letters as they are working on a project. Like software developers. Theyre are sending their project back and forth and sending video letters and what i shy about that is that your child is able to build a relationship and it is not like a skype session. You are sending a message to about the person. Is like a present when the message comes back. Heard it described as a penpal revolution for the 21st century. Science, technology, arts, math are the Hard Sciences heard d math the areas you can cross different cultural barriers . Or is their opinion you can dispute . Is a universal language, and as i was saying with bonds and electrons, you are going to learn about electricity no matter where you are around the world. With technology where it is today, why shouldnt we be able to communicate in the classroom while learning subjects together . That is where they will be in the future and that is what they need to understand the jobs they will have. What type of reaction have you gotten from students, parents, administrators . Amy many states are waking up to how important this is and it private companies and Corporate America saying, i need workers like this. There was a great article in the New York Times a couple of months ago how ibm and their workforce in india for coal and dow, almost half their workforce is outside of the United States and that is an needle of how employees ability to understand global issues and solve global problems across borders and boundaries. That has got be brought into the school system. Scarlet theres skepticism about globalization and the challenges of that and people are looking more in words, isferring to focus on what inside the Country First rather than look beyond the borders. How does that impact the conversation . Amy it is a wonderful question and i believe education has always been international. Is a national treasure, but as capital started to move around the world, sorted information. As information moved around the world as quickly as it is we cant really hide from that. Education must follow that flow, so we have got to give children the tools they need to succeed in this economy. Therewe are doing this, has to be pathways we are developing at an early age, especially with stem. Ancombining global with stem combining with age five and going to second grade at third grade, and by the time we reach ninthgrade you have got and you are ready to go. To the Venture Capital community is the thing about the giant tech fund deal prices. Should stoptors worrying and be grateful and explains why at mobile World Congress in barcelona. It is good for them valuations go up and they can exit at those prices. A lot of early investors have haved a lot, predominantly exited with investments because we do primary and secondary uber wherecluding early investors exited and sold secondary shares. You mentioned uber, companies in the same space, ridesharing, how does that work when you have competitors . Where you see the vision for that . China and uber is the rest of the world, and there is a little bit of overlap, but i believe it is a synergy, because they need to be shared. Havingefits are immense our portfolio grow over the next three years few years. And selling used cars to uber Insurance Companies like lemonade selling Car Insurance to uber drivers. Etc. You are eyeing up insurance at the moment. No. Where are you not seeing want see more in banking, or geographical perspective . I think you are seeing enough deals. We have existed nine months and have made 30 deals i think the desire would be to see more from europe. Ceo speakingas the to bloomberg at the mobile World Congress in barcelona. Coming up, well discuss Market Opportunities with elizabeth lilly. And a quick look at what is going on as far as markets are concerned as we head towards the break. 1. 3 andones is higher the nasdaq and s p 500 also higher. Mark,ly below that 1 losing steam in the last 30 minutes. At the take a quick look chartier, as far as Interest Rates, giving back a little bit we areu. S. 10 year, relatively unchanged on the session, in terms of what is driving here is Information Technology and the industrials energy and telecommunications just one sector of the s p 500 in the red right now. From new york. This is bloomberg. Mom you called . Oh hi sweetie, i just want to show you something. Xfinity mobile find my phone. [ phone rings ] look at you. This tech stuff is easy. [ whirring sound ] you want a cookie . Its a drone i know. Find your phone easily with the xfinity voice remote. One more way comcast is working to fit into your life, not the other way around. Sure. Momwhats up, son . Alk . 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. Welcome to bloomberg markets. We are live here at bloomberg headquarters in new york. Equities higher. Find out how long they can find value in todays market. And President Trump best to take on the nra. We speak to a lawmaker pushing to an federal Gun Free School zones. Speak to the largest miner of the precious metal. Showing some strength even after pointing out earlier. Have telecomwe that continues to lead the gain. Apple rising in part after the Bloomberg News story about phones and it will be interesting going back to the ph isablet phablet size. Also, the gap between expectations or the stock is trading and Discovery Communications due out before the bell tomorrow. Noterms of recent reports, terribly well. Willter all five of those see if this time proves different. We are seeing the two and 10 yearyearold and a little bit of buying here. Earlier, all three of them were seeing a drop in yields. Even though we have seen a little bit, there is a short amount of interest. Take a look at the bloomberg. It is at a here record high. Interesting here, there is this brought expectation. Still, the race will start to see more selling. Interesting if you look at more volatility. We have excess volatility and yellow and the socalled move index which measures volatility. There was a spike in all of them. Currencies delay for as experts remain cautious or on edge as long as the bond volatility is elevated. Lets get you to bloomberg first word news. Concluded hisrump meeting with the nations governor on how to address cool shooting spirit the president says he doesnt want all teachers to carry guns, those that have a natural talent. He also discussed the allowories that semiautomatic weapons to be turned into full automatic. Im writing out bump stocks. They are doing what they think is right, but sometimes we will have to be tough. Lets Washington State governor was one of two democrats to address the public the president publicly. It is a highstakes class isr Digital Privacy threat really Prime Minister benjamin and not you best Benjamin Netanyahu will focus on the status of jerusalem and iran. Speaking at his parties meeting today, he said he would personally think President Trump for his proposal to move the u. S. Embassy to jerusalem. Hundreds of people sitting mine in the rain today to pay their respects to charlotte and charlotte, North Carolina two to billy graham. Funeral is on friday. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Lets get back to the markets. Treasury yields fall below 2. 9 . Lily. O bring in beth it is great to speak with you beth. Thanks for joining us. We have a rising Interest Rate requirement in you have noticed that it is supported for smallcap stocks. What is different this time in 2018 . I would say what is different this time is the economic improvement the country is expressing is being driven by business spending. Has been really driven by the consumer and we are seeing a businesslike recovery because businesses are much more confident with trump in office. As a result, they are starting the Purse Strings and spend money. We haveenefit seen a lot of opportunities in the smallcap and we think they will do well at what point does the rise and Interest Rates become a problem . Do you expect to see the imbalance this year . I think Interest Rates have a long way to go until they truly impact equities in the market has already discounted inflation going up. Are they going to be extremely overred and if you look time how small caps have done, they have outperformed all over all other classes so we think they are they think they are the close on the economy is improving which means smallcap stocks are going to benefit disproportionately from improve Economic Activity because their leverage and structure of their Financial Model. More will flow to the bottom line in the revenues will grow faster and their revenue will. Talk about how small caps are positioning. We talked earlier about how that seems to be never ending. These have been big companies. What does it mean when it comes to Small Companies . It is interesting. Is the economy is going to go to do 3 and companies are not going have a growing 2 to 3 . They want to grow faster. Companies taken over and we think that will accelerate. They can acquire these Smallcap Companies for cash in the process is not disruptive to oftentimesity and they are single Product Companies and i can talk about a few of them that have one product line. It might be a salesforce or theyre missing a product line and he can so that in addition to other ones. Talk us through some of your stock picks. The first stock i want to talk about is called cardiovascular systems. Blade thator cardiologists used to clean out your artery. If you have a blocked artery, you need to first cleanout the plaque. He will go in and clean it out with this blade. They say the only device approved for the cleaning out. They the real strong point veins in theut the leg. He has completely overhaul the Financial Model and brought a financial discipline to the company and they are growing nicely and will turn even into a positive and their number one , youtitor competitor get a vastly higher stock price. It is now some 21 . We do have to go. You so much. Lily coming up, President Trump makes takes a major span stand on gun control. From new york but this is bloomberg. From new york, this is bloomberg. Lawmakers return to capitol hill and were forced to join the National Conversation in the parkland School Shooting. Congressman is pushing legislation to end Gun Free School zones. Thank you so much for joining us. How do you respond to those who say adding more guns into a is simplyuation treating symptoms, not the cause. First of all, lets recognize the sign in front of the school is not a deterrent to any wouldbe criminal and the second thing is the statistics bear this out. 98 of Mass Shootings happen in the gun free zone because criminals prefer unarmed victims. Allow some form of concealed carry in their schools and all the problems people are worried about are not occurring. Students are not taking the teachers gust, shooters are not when they show up. Guns beingtalk about in the wrong hands, you think background checks given false sense of security. Why do you disagree with the president question mark why do you disagree with the president . Only about one in 1000 people who failed the background check our pursuit for criminal charges. Them are innocent americans who have been denied their ability to purchase a firearm because of the back on system background check. Nics, it wouldix encourage the administration to turn names over and the problem with that, those have not been adjudicated by a court. Im ok if someone has lost the right to own a gun by a court, but when you start asking the v. A. Or Social Security to make that determination, that is a problem. Sentiment is shifting. Survey seems to suggest that public view supports greater action and control as far as guns are concerned in the United States. Do you agree those need to be listened to . We do need to listen to the survivors. I talked to two column by columbine survivors and one of them told me he thinks teachers should be armed. At the time, he was frustrated with the faculty that allow this to happen and has forgiven them, theres not a single shooting that would have been stopped by a background check for it theres a lot of absence on data on gun violence. Congress has never funded any such request. Would you support funding for information gathering purposes to figure out a better solution here . I think we should get all the data. I have inquiries into the atf. I want to know if background checks this from an eight against minorities and the atf doesnt want to respond. We are having a hard time getting the answers from the agencies. Has called fort a bump stock band. Do you think he is being too emotional and his response to the latest shooting . I think the president should be sympathetic or emotional. Unemotional. Im frustrated my colleagues will offer solutions that they know what work. The president doesnt have the authority to ban an assessor the Obama Administration has ruled that the bump stock does not meet that legal definition. If you want to ban them, you have to come to congress and change the law spirit you cannot do that in the executive branch. You think is feasible in light of florida . You can make sure the courts do turn over the names, not the ministry of ranch, but the courts. They fail to do that in the shooting in texas. I think what is feasible is to have a real discussion about how we respond to the shooting. Talking about things that may or may not reduce the likelihood of the likelihood of a shooting, but no one has talked about what would stop the shooting. What would stop them is armed teachers. That would be a seven director action. If you would see that surely if he can handle a gun at 18, you can also handle alcohol. Im working on a bill to do that because i think if youre going to be called and drafted by her country to die, you should absolutely have the right to purchase alcohol. If the states want to change that, that is another thing, but there should not be a federal age. Introduceim going to him lowered the age to 21 tose a handgun from 18. The heller decision, the landmark case, the Supreme Court of off for the states to have the restrictions and mcdonald case as well as the mcdonald case as well, but what they said is you cannot the private someone of the right to the to bear arms. Thank you so much, joining us from kentucky. This is bloomberg. The it is time for options inside. Often often the tail end of earnings season, but we still have some coming up. Target is one of those set to report create a what are analysts looking for . On a boat to bases, it is a pretty inexpensive stock. Earnings next week, we think earnings should be solid. Andly, a positive outlook what comes out of this volatility environment in many situations is that it remains elevated to call implied volatility. This, whereon like we have a pretty solid dilation backdrop, that structure fits very nicely. This is a we tend to be cautious a little bit because yes, you are sure they can cut and pay the price on that event. Target, we name like want to utilize that structure specifically. A 62. 5 and a sell half foot. Level is thethe 85 alltime high in the stock. Once it breaks that level, then you are sort of off to the races. This is a wider range between when you talking about in more than 20 range. Pretty wide and representing the environment, given where that stock is, we can extract enough to keep those far away and still turnaround and help finance that. We have a date to watch the target earnings. Thank you so much. Still ahead, all that glitters. We talked to the president of barrett gold, the largest minor. This is bloomberg. President trump weighed in today on the Supreme Courts decision not to hear the appeal on a ruling by the federal court to allow dreamers to stay in the country for now. He discussed that in a white house meeting. We would like to help. I think everyone would like to help. The Supreme Court ruled it has to go through normal channels. It is sad when every single case filed against us is in the ninth circuit in and we do the to find in the Supreme Court. What is that tell you about our court system . Does that tell you about our court system . It is sad. The case could end up before ae Supreme Court after Appeals Court rules on it. Regulations are unlikely. President trump and some republicans have suggested