Transcripts For BLOOMBERG Bloomberg Markets Americas 2018011

Coming down. They havees taken a hit. Accompanied this shift for stocks, or the seeming sentiment. Shift in the bond market as well. We see the 10 year old right 2 . Nd six point as we see some money flight out of stocks. We are seeing a similar situation with bonds. This is the net change in yield for the 5, 10 year yield. Andtwo has seen the biggest the past four months. We have seen that 86 point change there. It has been much more moderate for the longer end of the curve. Now the 10 year is picking up with those changes. Gettingd stocks back to the stoxx for a moment. It has gone on the downside today. Today. Trading it was one of the big winners last year. Merck is facing a potential classaction lawsuit contending they made a deal with the generic drug maker to delay competition for their cholesterol drug. Finally General Electric continuing their slide here as it has been battered over the past few days ill and the breakdown related to the Legacy Health insurance business. We are also watching generic drug makers today. They are one of the worstperforming stocks. The New York Times had a roof or of Hospital Systems that was running to enter the generic drug space. That way they could help battle high prices and shortages. This development reaffirms continued pressure on these companies. They have already been under pressure. , if we look atn the fiveday chart, it is going a little more sideways and higher today. Over the past week it is still down over told percent and just under 11,000 for bitcoin. Letter of concern continues. Thank you so much. First word check on news with Mark Crumpton. Pessimism, paul ryan expects congress to come to terms on a stopgap spending measure. He said provisions on defense spending should include incentive for a bipartisan agreement. I have confidence we will pass this. Members understand why honor for we want to have a Government Shutdown . The military on starts kicking in. That is not in anyones interest. Mark the speaker added the continuing resolution has the president s. Tweets contradictory about Health Insurance Program Extension art not causings problems at all. The president today fired back at his own chief of staff, john kelly told democratic lawmakers the United States will never thetruct a wall along southern border. Mexico will never pay for it. In a tweet, the president said the wall has never changed since he conceived of it. He also said mexico will pay for it, directly or indirectly. Pointing to the trade surplus with the United States, he also called nafta a bad joke. A row, opecear in has increased their forecast for oil growth. Has senty and prices oil to 70 per barrel. That has concern of more oil coming to the market. They raced nonsupply growth by 16 . The European Central bank wants to change the narrative of the state of Economic Affairs across the continent. Speaking at a conference in frankfurt, he said it is time to move past the crisis and focus on the future. Saying we want to strengthen the recovery, it is not recovery anymore. Not about moving out of the previous crisis, it is preparing for the next one. Better, we have to grapple with that. Some individual economies require Structural Reforms to make the market work better. Global news 24 hours a day powered by more than 2700 journalists and analysts, in more than 120 countries. Im Mark Crumpton, this is bloomberg. Lets get more now on the shutdown he talked about. The clock is ticking on capitol hill. The house scheduled to vote tonight. Us now. Espondent joins again, itt to say, seems like we are doing this constantly. Groundhog day is coming. Julia how many days are we planning on doing this . What they are talking about what extend this until february 16. It does not like that will pass. It is looking very dicey to get that through the senate right now. B inare talking about plan normal conversation. T, thatrobably at plan would be a five day, get them to the weekend and continue negotiating. The problem is, they need nine senators because there is 51 republicans. To 60. Ed to get they have artie have three republican senators, a fourth about to announce they will vote against it. John mccain is still recovering from his brain surgery treatments. Democrats now. That will be very hard to get that. , lot of lastminute drama eventually or usually it will always happen. Does this benefit the economy to does itse shutdowns, or matter to continue to pass resolutions without a firm a jet, does that matter to the economy . Michael it does not really have an effect. What you end up with is a government that is funded at the same level. It never takes into account inflation or additional responsibilities that agencies have. As paul ryan says, you run into this where you have spent all your money. They can fix that. Terms of a shutdown, there is a macro picture and a micro picture. It may cause you 20 billion which is a rounding error in terms of gdp, on a micro Level Contractors do not get paid. Federal employees who are for back pay,ly get contractors do not get paid. If you work for a corporation and you provide food to the government to a cafeteria, you are out of work, you will not get paid for those days off. The companies will have to absorb that. Julia the democrats are using the leverage they want a deal for the dreamers with the Immigration Reform we have been talking about. On the other side is you have republicans pushing for ends like things like military spending. Do we know the minimum both sides will agree on . The democrats want to get some kind of deal, even if it is only a one month sentence. The problem is, we dont know what donald trump will sign. Mitch mcconnell has said that is a problem. They dont know where the president is on the dreamer issue. Until they get some signal from the white house on how far they can go, that is a hard negotiation to do. Michael, thank you so much for your perspective. We want to bring an a fellow at. He Hoover Institute he is also an author of a new book. Thank you so much for joining us today. We were just talking with mike about President Trump and the looming Government Shutdown, if that happens. I went to for start with the presidency, in the past, you have called his presidency a comedy rather than tragedy. We have seen the administration scramble to over to Government Shutdown. , the basehat happens and his support is still there. Is it a wise move for the president to be pinning him, that can all go up in flames very quickly . Marketnow that the bull is forever. There have been many people who warned that a correction could come along and spoil that probability of his argument. If you look at that Approval Rating of his, it has not been. Aking off he was the most unpopular polling began. He did not get any more popular. You begin to see the possible , asection point to europe the Economic News continues to come in. He is getting some wins on foreign policy. At the end of last year, iran was in a state of upheaval. Guess what the north and south koreans, they are making this with each other. Himself to shut shoot himself in the foot with twitter. If he tweeted less that shocked so many peoples, we would be focusing more on the outcomes. We would be focusing on what is being done. I think that would reflect much better on him. Julia you think he is undermining his own success . Outrageouse being has forced democrats to the left. With these immigration issues it is quite good from a Strategic Point of view. As the democrats become more committed to the sanctuary cities. Republicans dont feel good about that. The the cost benefit of populace outrage, they are finding this poisonous. Net not sure if you met better off with the things he has said. More on the achievements, he would be writing positive. Are many aspects now in the shortterm and longterm that are played to his favor if we put his tweeting aside. One of the things i try to argue is we have a new kind of policymaker which is something we are struggling to get our heads around. It is a spirit dominated by network television. The president has shown himself to have a much better andrstanding of Twitter Facebook than his political rivals. Over the two years writing about them of do not underestimate him. Make theke mistake of judging him. I asked myself, bsi personalities, what presidency is this like . A lot of people have drawn parallels. Democrats would love to see it watergate all over again. With the Washington Post bringing down donald trump. Like nixons first year, it is much more like woodward. It is kind of like what we had seen in the past year. Julia we are going to talk more about this, neil is staying with us. Goldman sachs makes way for Morgan Stanley. Why that company has dominated on wall street. From new york, this is bloomberg. Julia this is bloomberg markets. Niall. Back with we were just talking before the fundamental basis for this book and what it means and how President Trump sits in the in between of hierarchies in history and social network. How they have evolved over time. He is somebody who harnessed in a unique way, political terms, at least in that point of time. In some ways the brexit referendum was the overture to the main show. The way the Trump Campaign use this. This is a way at showing how was to be made bigger and faster than ever before. In history, a new network has come along and disrupted established hierarchies, those big cones of power that usually rule. My favorite was when the Printing Press disrupted european politics. That is another martin luther. [laughter] civil rights would not have worked if there had been this network of churches. Organize, you dont need to have the internet to do them. All we have done is making them bigger and faster. Scarlet they are easier to corrupt as well. This is a problem that makes it different than the age of the Printing Press. Europe,t 16thcentury the social Networks Today are very concentrated and their ownership. Quasimonopolies have emerged online. You have google, amazon, and facebook. This is extraordinary power. Facebook is the biggest content publisher in history. Zuckerberg is more powerful than William Randolph hearst. Regulated as if it is a tech publisher not a content producer. That is a shorter because 45 of people are getting their news from facebook. Scarlet should the . That is one of the key arguments that will come out in the coming years. Is it a content publisher . Should they be responsible for the content that appears. Thinkonce in a while they they say they are hiring 10,000 people. With a sheer scale of the content that is on facebook will require many more than 10,000 fact checkers. There is a lot of discussion on , that is ampanies red herring. It is not going to happen. Need antitrust actions against these companies. For theptions responsibility of content is when facebook did not exist, those look like a vulnerability. Julia what about somebody like amazon and the power they accrue . Small amount of time. Worried much more about my rivals in asia. I would be looking at alibaba, i would be thinking i was going to own the world. Wonder, then to Chinese Companies are going to make a push for the market share out of china, we may see amazon worry about that. Niall is going to stay with us. For now, we are going to talk about bank earnings. The shares for Morgan Stanley are rising. You are going to break down the results next. This is bloomberg. Scarlet this is bloomberg markets. Time for the Bloomberg Business flash. A check of the biggest business stories in the news right now. American airlines hiring hourly shuttles. Willompetitive route provide for business travelers. Free beer and wine will be offered in the main cabin. 15 flights will be running every weekday from chicago and laguardia starting april 4. Goldmantanley joining sachs on bitcoin futures. He tells bloomberg the firm has been doing tour he meetings on ways to engage cryptocurrencies. They are the only wall street banks offer and that service to clients. That is your Bloomberg Business flash update. Julia lets talk more about bitcoin. He said the revolution will go on. Back in 1900,that when my son said to me, you really should i it going. Said, young man, what you know about Financial Industries that can never work . Around the hard way that he was right. I caught up last year inserted to rethink this. With the amazing financial revolution about bitcoin is about blockchain. I think a lot of people have been concerned about the term cryptocurrency. I dont think we will produce a new form of money this way. What we have produced is a new kind of stored value. More importantly a speculative object. For some people that is attractive. Like three dollars was the price, i would not have to run around new york city for interviews. I dont think his allowance gave him room to invest. He reminds me of this on a regular basis. One thing i came to see is that it has a classic double quality. They are plastic bubbles. Thought 10,000 was the entry point. Then i became a buyer. Device my sons advice. Ceo,et the fall of ubers we have the inside scoop next. 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. Ulia this is bloom scarlet this is bloomberg markets. Scarlet big story for the bank the feings climbing to a record thanks to the booming stock market that helped offset trading results that were stung by the same malaise afflicting all of wall street. Or more, were joined by brandon hawkin. Give us your line on this. So with Morgan Stanley results pretty solid, although disappointing environment for sure. The business showed through the strength there. It wasnt anything tremendous. You know. It was a fourth quarter, fourth quarters arent terrific but the juxtaposition of the results of Morgan Stanley versus goldman, which was particularly weak, and they provided an outlook that was meaningfully more optimistic and gave a path for meaningfully improved returns whereas goldman investors were left scratching their aid as to what would drive incremental earnings at this time. Scarlet and they pivoted away from trading which paid off. For Goldman Sachs which has stuck with trading, does it stick with its strength and try to gain more shares from rivals or does it pivot to another business and twry to start brand now there . The banking actually, the Investment Banking, traditional Investment Banking at goldman has been strong. The problem is is that its been so big for goldman, when that business isnt working its hard for investors to get excited about the potential for earnings growth. What goldman tried to do and they laid this out in the fall they tried to lay out that theyre going to shift to more of the corporate lending. They created a markets platform thats going to be driving a billion dollars of Revenue Growth over the next three years and theyll be if youre not familiar, markets is basically a fintech competitor. Theyll be ding credit card consolidation debt online. A very big divergence from what people are used to out of Goldman Sachs. Its left some investors wondering whether or not this is the right time to be jumping in when theyre chasing revenue in a business theyre very new to. Its an ktive de active debate around Goldman Sachs now. Julia you said it, a year to forget, why dont you really tell us what you think. To what extent is this a business problem a structural problem, versus a market environment. Yes it was bad for these guys but theyre all struggling. Theyre all struggling but goldmans results were weaker than the peer group and thats the question investors and analysts have been pushing them on all year long and they havent really had a satisfying answer to that and its left a lot of them doing soul searching at this point. Weve been talking to them a lot the last 48 hours and theyre wondering whether or not this to do i really continue to stick with this . Am i leaving it at the low point . The problem is, having confidence in a trading forecast for any of these businesses is very, very he low. You cant have confidence in it. Its so volatile. Goldman is very reliant on it and their business has a lot less corporate clients. Theres less stability, that core. Theyre trying to build it, trying to pivot, doing what they can, theyre not sitting idly by, the question is how long investors will be willing to wait depr that recovery. Scarlet last question to you, do we pay too much attention to these two banks in particular . Should we be looking at other firms like blackrock as a better gauge of the current market vironment with its massive passivism . In excess of 6 trillion under management with blackrock and they kicked off the quarter, initially when they had the results on the same day as j. P. Morgan with the General Electric<\/a> continuing their slide here as it has been battered over the past few days ill and the breakdown related to the Legacy Health<\/a> insurance business. We are also watching generic drug makers today. They are one of the worstperforming stocks. The New York Times<\/a> had a roof or of Hospital Systems<\/a> that was running to enter the generic drug space. That way they could help battle high prices and shortages. This development reaffirms continued pressure on these companies. They have already been under pressure. , if we look atn the fiveday chart, it is going a little more sideways and higher today. Over the past week it is still down over told percent and just under 11,000 for bitcoin. Letter of concern continues. Thank you so much. First word check on news with Mark Crumpton<\/a>. Pessimism, paul ryan expects congress to come to terms on a stopgap spending measure. He said provisions on defense spending should include incentive for a bipartisan agreement. I have confidence we will pass this. Members understand why honor for we want to have a Government Shutdown<\/a> . The military on starts kicking in. That is not in anyones interest. Mark the speaker added the continuing resolution has the president s. Tweets contradictory about Health Insurance<\/a> Program Extension<\/a> art not causings problems at all. The president today fired back at his own chief of staff, john kelly told democratic lawmakers the United States<\/a> will never thetruct a wall along southern border. Mexico will never pay for it. In a tweet, the president said the wall has never changed since he conceived of it. He also said mexico will pay for it, directly or indirectly. Pointing to the trade surplus with the United States<\/a>, he also called nafta a bad joke. A row, opecear in has increased their forecast for oil growth. Has senty and prices oil to 70 per barrel. That has concern of more oil coming to the market. They raced nonsupply growth by 16 . The European Central<\/a> bank wants to change the narrative of the state of Economic Affairs<\/a> across the continent. Speaking at a conference in frankfurt, he said it is time to move past the crisis and focus on the future. Saying we want to strengthen the recovery, it is not recovery anymore. Not about moving out of the previous crisis, it is preparing for the next one. Better, we have to grapple with that. Some individual economies require Structural Reforms<\/a> to make the market work better. Global news 24 hours a day powered by more than 2700 journalists and analysts, in more than 120 countries. Im Mark Crumpton<\/a>, this is bloomberg. Lets get more now on the shutdown he talked about. The clock is ticking on capitol hill. The house scheduled to vote tonight. Us now. Espondent joins again, itt to say, seems like we are doing this constantly. Groundhog day is coming. Julia how many days are we planning on doing this . What they are talking about what extend this until february 16. It does not like that will pass. It is looking very dicey to get that through the senate right now. B inare talking about plan normal conversation. T, thatrobably at plan would be a five day, get them to the weekend and continue negotiating. The problem is, they need nine senators because there is 51 republicans. To 60. Ed to get they have artie have three republican senators, a fourth about to announce they will vote against it. John mccain is still recovering from his brain surgery treatments. Democrats now. That will be very hard to get that. , lot of lastminute drama eventually or usually it will always happen. Does this benefit the economy to does itse shutdowns, or matter to continue to pass resolutions without a firm a jet, does that matter to the economy . Michael it does not really have an effect. What you end up with is a government that is funded at the same level. It never takes into account inflation or additional responsibilities that agencies have. As paul ryan says, you run into this where you have spent all your money. They can fix that. Terms of a shutdown, there is a macro picture and a micro picture. It may cause you 20 billion which is a rounding error in terms of gdp, on a micro Level Contractors<\/a> do not get paid. Federal employees who are for back pay,ly get contractors do not get paid. If you work for a corporation and you provide food to the government to a cafeteria, you are out of work, you will not get paid for those days off. The companies will have to absorb that. Julia the democrats are using the leverage they want a deal for the dreamers with the Immigration Reform<\/a> we have been talking about. On the other side is you have republicans pushing for ends like things like military spending. Do we know the minimum both sides will agree on . The democrats want to get some kind of deal, even if it is only a one month sentence. The problem is, we dont know what donald trump will sign. Mitch mcconnell has said that is a problem. They dont know where the president is on the dreamer issue. Until they get some signal from the white house on how far they can go, that is a hard negotiation to do. Michael, thank you so much for your perspective. We want to bring an a fellow at. He Hoover Institute<\/a> he is also an author of a new book. Thank you so much for joining us today. We were just talking with mike about President Trump<\/a> and the looming Government Shutdown<\/a>, if that happens. I went to for start with the presidency, in the past, you have called his presidency a comedy rather than tragedy. We have seen the administration scramble to over to Government Shutdown<\/a>. , the basehat happens and his support is still there. Is it a wise move for the president to be pinning him, that can all go up in flames very quickly . Marketnow that the bull is forever. There have been many people who warned that a correction could come along and spoil that probability of his argument. If you look at that Approval Rating<\/a> of his, it has not been. Aking off he was the most unpopular polling began. He did not get any more popular. You begin to see the possible , asection point to europe the Economic News<\/a> continues to come in. He is getting some wins on foreign policy. At the end of last year, iran was in a state of upheaval. Guess what the north and south koreans, they are making this with each other. Himself to shut shoot himself in the foot with twitter. If he tweeted less that shocked so many peoples, we would be focusing more on the outcomes. We would be focusing on what is being done. I think that would reflect much better on him. Julia you think he is undermining his own success . Outrageouse being has forced democrats to the left. With these immigration issues it is quite good from a Strategic Point<\/a> of view. As the democrats become more committed to the sanctuary cities. Republicans dont feel good about that. The the cost benefit of populace outrage, they are finding this poisonous. Net not sure if you met better off with the things he has said. More on the achievements, he would be writing positive. Are many aspects now in the shortterm and longterm that are played to his favor if we put his tweeting aside. One of the things i try to argue is we have a new kind of policymaker which is something we are struggling to get our heads around. It is a spirit dominated by network television. The president has shown himself to have a much better andrstanding of Twitter Facebook<\/a> than his political rivals. Over the two years writing about them of do not underestimate him. Make theke mistake of judging him. I asked myself, bsi personalities, what presidency is this like . A lot of people have drawn parallels. Democrats would love to see it watergate all over again. With the Washington Post<\/a> bringing down donald trump. Like nixons first year, it is much more like woodward. It is kind of like what we had seen in the past year. Julia we are going to talk more about this, neil is staying with us. Goldman sachs makes way for Morgan Stanley<\/a>. Why that company has dominated on wall street. From new york, this is bloomberg. Julia this is bloomberg markets. Niall. Back with we were just talking before the fundamental basis for this book and what it means and how President Trump<\/a> sits in the in between of hierarchies in history and social network. How they have evolved over time. He is somebody who harnessed in a unique way, political terms, at least in that point of time. In some ways the brexit referendum was the overture to the main show. The way the Trump Campaign<\/a> use this. This is a way at showing how was to be made bigger and faster than ever before. In history, a new network has come along and disrupted established hierarchies, those big cones of power that usually rule. My favorite was when the Printing Press<\/a> disrupted european politics. That is another martin luther. [laughter] civil rights would not have worked if there had been this network of churches. Organize, you dont need to have the internet to do them. All we have done is making them bigger and faster. Scarlet they are easier to corrupt as well. This is a problem that makes it different than the age of the Printing Press<\/a>. Europe,t 16thcentury the social Networks Today<\/a> are very concentrated and their ownership. Quasimonopolies have emerged online. You have google, amazon, and facebook. This is extraordinary power. Facebook is the biggest content publisher in history. Zuckerberg is more powerful than William Randolph<\/a> hearst. Regulated as if it is a tech publisher not a content producer. That is a shorter because 45 of people are getting their news from facebook. Scarlet should the . That is one of the key arguments that will come out in the coming years. Is it a content publisher . Should they be responsible for the content that appears. Thinkonce in a while they they say they are hiring 10,000 people. With a sheer scale of the content that is on facebook will require many more than 10,000 fact checkers. There is a lot of discussion on , that is ampanies red herring. It is not going to happen. Need antitrust actions against these companies. For theptions responsibility of content is when facebook did not exist, those look like a vulnerability. Julia what about somebody like amazon and the power they accrue . Small amount of time. Worried much more about my rivals in asia. I would be looking at alibaba, i would be thinking i was going to own the world. Wonder, then to Chinese Companies<\/a> are going to make a push for the market share out of china, we may see amazon worry about that. Niall is going to stay with us. For now, we are going to talk about bank earnings. The shares for Morgan Stanley<\/a> are rising. You are going to break down the results next. This is bloomberg. Scarlet this is bloomberg markets. Time for the Bloomberg Business<\/a> flash. A check of the biggest business stories in the news right now. American airlines hiring hourly shuttles. Willompetitive route provide for business travelers. Free beer and wine will be offered in the main cabin. 15 flights will be running every weekday from chicago and laguardia starting april 4. Goldmantanley joining sachs on bitcoin futures. He tells bloomberg the firm has been doing tour he meetings on ways to engage cryptocurrencies. They are the only wall street banks offer and that service to clients. That is your Bloomberg Business<\/a> flash update. Julia lets talk more about bitcoin. He said the revolution will go on. Back in 1900,that when my son said to me, you really should i it going. Said, young man, what you know about Financial Industries<\/a> that can never work . Around the hard way that he was right. I caught up last year inserted to rethink this. With the amazing financial revolution about bitcoin is about blockchain. I think a lot of people have been concerned about the term cryptocurrency. I dont think we will produce a new form of money this way. What we have produced is a new kind of stored value. More importantly a speculative object. For some people that is attractive. Like three dollars was the price, i would not have to run around new york city for interviews. I dont think his allowance gave him room to invest. He reminds me of this on a regular basis. One thing i came to see is that it has a classic double quality. They are plastic bubbles. Thought 10,000 was the entry point. Then i became a buyer. Device my sons advice. Ceo,et the fall of ubers we have the inside scoop next. 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<\/a> across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Ulia this is bloom scarlet this is bloomberg markets. Scarlet big story for the bank the feings climbing to a record thanks to the booming stock market that helped offset trading results that were stung by the same malaise afflicting all of wall street. Or more, were joined by brandon hawkin. Give us your line on this. So with Morgan Stanley<\/a> results pretty solid, although disappointing environment for sure. The business showed through the strength there. It wasnt anything tremendous. You know. It was a fourth quarter, fourth quarters arent terrific but the juxtaposition of the results of Morgan Stanley<\/a> versus goldman, which was particularly weak, and they provided an outlook that was meaningfully more optimistic and gave a path for meaningfully improved returns whereas goldman investors were left scratching their aid as to what would drive incremental earnings at this time. Scarlet and they pivoted away from trading which paid off. For Goldman Sachs<\/a> which has stuck with trading, does it stick with its strength and try to gain more shares from rivals or does it pivot to another business and twry to start brand now there . The banking actually, the Investment Banking<\/a>, traditional Investment Banking<\/a> at goldman has been strong. The problem is is that its been so big for goldman, when that business isnt working its hard for investors to get excited about the potential for earnings growth. What goldman tried to do and they laid this out in the fall they tried to lay out that theyre going to shift to more of the corporate lending. They created a markets platform thats going to be driving a billion dollars of Revenue Growth<\/a> over the next three years and theyll be if youre not familiar, markets is basically a fintech competitor. Theyll be ding credit card consolidation debt online. A very big divergence from what people are used to out of Goldman Sachs<\/a>. Its left some investors wondering whether or not this is the right time to be jumping in when theyre chasing revenue in a business theyre very new to. Its an ktive de active debate around Goldman Sachs<\/a> now. Julia you said it, a year to forget, why dont you really tell us what you think. To what extent is this a business problem a structural problem, versus a market environment. Yes it was bad for these guys but theyre all struggling. Theyre all struggling but goldmans results were weaker than the peer group and thats the question investors and analysts have been pushing them on all year long and they havent really had a satisfying answer to that and its left a lot of them doing soul searching at this point. Weve been talking to them a lot the last 48 hours and theyre wondering whether or not this to do i really continue to stick with this . Am i leaving it at the low point . The problem is, having confidence in a trading forecast for any of these businesses is very, very he low. You cant have confidence in it. Its so volatile. Goldman is very reliant on it and their business has a lot less corporate clients. Theres less stability, that core. Theyre trying to build it, trying to pivot, doing what they can, theyre not sitting idly by, the question is how long investors will be willing to wait depr that recovery. Scarlet last question to you, do we pay too much attention to these two banks in particular . Should we be looking at other firms like blackrock as a better gauge of the current market vironment with its massive passivism . In excess of 6 trillion under management with blackrock and they kicked off the quarter, initially when they had the results on the same day as j. P. Morgan with the Earnings Call<\/a> i thought ordinary care my gosh, this is not going to get much attention. Meanwhile, blackrock shares were up more than j. P. Morgan that day, up about 3 . In the trading days, three or four trading days since, blackrock added about 8 in a market and a take thats been up marginally maybe a percent or so. Really encouraging with an extremely strong message that theyre not going to be cutting price, not going to be allowing the benefit from tax reform to at all impact either decisions for investing or decisions in how they proice their product, which was a big fear for investors and led to a huge rally. Its hard not to like blackrock. Huge passive business. Dominant e. T. F. Position. A great institutional business to round it out. Julia thank you for your time. Lets get a check on the headlines at this hour with Mark Crumpton<\/a>. Mark noble prize Winning Economist<\/a> Edmund Phelps<\/a> says the new u. S. Tax ore form has a big minus. He spoke to bloomberg in rome after receiving an honorary degree. Were going to have 10 years with reduced tax rits on rates on corporate profits and corporate profits are significant chunk of the national income. So were going to it appears, its very possible, that theres an aggravation or worsening of the fiscal deficit. Phelps also said he hopes President Trump<\/a> uses his trip to the World Economic<\/a> Forum Next Week<\/a> to repair u. S. Relations with europe. The british Prime Minister<\/a> met with Emanuel Mack Ron<\/a> outside of london. The bilateral summit was intened to strengthen security and intelligence between the nations and build goodwill amid negotiations. Britain agreed to help fund French Military<\/a> and humanitarian missions in africa and strengthen their joint patrols in calais a common destination for migrants trying to reach britain. I. M. F. Minister bhele guard wants to boost spending to increase growth. They say germany should take advantage of the Budget Surplus<\/a> to invest more in infrastructure projects. Said ther president increasing public spending is not the way to go. Pope francis stopped his torcade to check on a Police Officer<\/a> who fell off his house. He stopped to check on the Police Officer<\/a> who was guarding the route as francis and his entourage passed by. Global news this 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. Counties countries. Im Mark Crumpton<\/a>. Julia . Julia 2017 was a turbulent year for uber. But before all of those scandals, uber already had a major problem. Former c. E. O. Travels kalnick the latest issue of bloombergs newsweek, has more. The author of this story joins us now. This is a fascinating story, eric. Talk to us about the cultural issues your story pinpoints came from the c. E. O. And the problems that created. We paint the picture of this meeting with kalanicks top executives, they have the results of a Reputation Survey<\/a> which found that, you know, at the time, sort of the average person had a good image of uber but if theyve heard of travels kalanick, they had a decidedly negative one. His reputation and the companys culture was hurting the companys image. While he was in that meeting, bloomberg, we posted video of travels arguing with his driver and you know, travels, you know, recognized this is bad. And sort of, you know, squirms on the floor and is just sort of profoundly uncomfortable with the image hes presenting and it just sort of speaks to how, you know, even as the Company Recognized<\/a> his reputation was a problem, he was putting himself n situations to make it worse. Scarlet yet finally the board did push back on him and he had to give up the reins and resign as c. E. O. What was the Tipping Point<\/a> that allowed them to say thats enough, we cannot support you anymore . You know, there were so many things, i think, how uber handled the rape case that one of the executives had the victims medical reports was significant to turning the tide. Susan fowlers blog post about the Sexual Harassment<\/a> at the company. And then obviously the lawsuit from Googles Waymo<\/a> over selfdriving cars. All those things build up to it. Ultimately it was a group of five investors led by benchmark that con convinced travels to resign. One interesting thing we showed, benchmark didnt expect him to go quietly. They thought it was more of an opening fwam bit and then he agreed to resign. Scarlet all right, fantastic story here on travels kalanick, available on bloomberg. Com. Niall us, neil ferguson, with whats going on in Silicon Valley<\/a> and arn the world. Lets talk about uber here. Is this a network in the same way that facebook is a network or twitter is a network . Or is it just a very narrow business in which travels kalanick has been able to ride the Silicon Valley<\/a> wave . Its a Network Business<\/a> and ride sharing was an example of what you could do with what people called society market, the goal is to establish the kind of dominance that had been established by facebook and social Network Facebook<\/a> in social networks and google in searches. Whats important is not just the missteps traffs kalanick made personally but he personified a certain Silicon Valley<\/a> air fwans which i characterized as resistance is futile. Which was, we have this awesome app, theres no point standing in our way, we will take the world. I remember talking with him and others saying its going to be different in berlin, in china. I write in the book and why it was that ultimately uber lost the battle in china, which is an amazing story, and a typical story of whats going on in the world today this race if you like, dominance of these twosided markets is a race thats being run not just by u. S. Company bus also by Chinese Companies<\/a>. Not by european companies. Interesting that europe hasnt produced any technology giants. Thing race is still at a relatively early stage. Its not clear who will be dominant in Global Online<\/a> retail 10 years from now my hunch is it wont necessarily be hamson. If you talk to the people at ali baba that i say we have a better understanding of emerging markets, were going to own not st china, but eurasia, and then move on to europe and just leave you guys, the United States<\/a>. Julia the point travels was making there, the regulators so far behind, technology and fin novation go so fast, they are move twargd these markets and not necessarily worry so much. At one point in he story he was on hi knees saying, i am so terrible. And then he went back to the meeting and said, we have a p. R. Problem. Not a cultural problem but a p. R. Problem. Is that a problem for to what extent is that a problem for other networks . Thats not so different from the way facebook responded when people said, you played a destabilizing role in the election. The idea that fake news on facebook has anything to do with this result is crazy. Well, of course, the tone quickly change bud at first the response is always, we have a p. R. Problem, go fix the p. R. , rather than recognizing sometimes the problems are very fundamental. I think there has to be a bigger response than weve seen so far. Companies have become enormously powerful. I dont think theres going to be a successful breakup. I think antitrust wont work. We need to think about the implications, particularly in the realm of our public sphere, of having a very small number of Companies Dominating<\/a> online advertising, Mike Bloomberg<\/a> himself said last year there has to be some liability for the content these Network Platform<\/a> pross deuce. I agree with that whole heartedly. An anomaly that the biggest content publishers are being regulated. I think youre right. The regulators are buying as they are with bitcoin and crip toe currencies. History tells us, no matter how rapidly a network grows, the government eventually catches up. Julia the network itself response. And the backlash for facebook too. Julia niall, author of the square and the tower thank you for that. Scarlet lets get a check on ill right now. Little change, down by. 1 . Inventory is at the pipeline hubs by 4. 2 million barrels. Still concerns about rising production are keeping the price in check. Natural gas declining after yesterdays gain giving back some of that advance. Data is showing stockpiles declined less than expected and high production of shale gas has investors confident supply can meet demand. To metals, lead is gaining after twoyear lows in europe and asia. This is bloomberg markets. Julia we are showing you live pictures just outside pittsburgh, where mr. Trump is visiting. His visit meant to highlight how the new tax bill is helping companies nationwide. Very important area, weve got a special election coming up in mid march. Scarlet hes trying to come in and sway the election. Julia and its a referendum on President Trump<\/a> after a crushing blow in alabama other the holidays. Were expecting a speech from him in the next hour which well bring in still with us Niall Ferguson<\/a>. Its going to be an interesting vote in pennsylvania for trump here. Its a key state for anymore 2016 a place where hell be looking to mobilize voters who turned up. Scarlet why do you think his resilience is still so high . His missteps, sounding off on twitter, making comments that dont help him. Somewhere around a third, 35 to 40 , of voters are very solidly pro trump. I dont think its just his larger than life personality. Theres content to trumps campaign. Sometimes this is forgotten. Scarlet but the content changes a lot. But the message when he ran was im going to do something about immigration, im going to do something about trade and im going to tack they will perception of washington is corrupt and its a swamp. And i think those votes voters atracked by that message are prepared to cut him an awful lot of slack as long as they feel hes still roughly pointing in that direction and as long as they feel he connects with them. I do think his ability to connect with people in middle america, considering the man is a wealthy new York Real Estate<\/a> developer by origin is amazing. But its real. I think thats the key. His ability to talk to them in the sometimes offcolor language they relate to. So those people are not going to despair from the republican establishments point of view, you cant give away a third of the electorate. Julia he cant do anything wrong in their eyes. Were going to come back to this. Now its time for our report with abigail, what sector are we looking at . Abigail were looking at the utility sector. Xlu down more than 1 , lagging the most of the sectors of the s p 500 at that point but now almost higher, sloithly slightly lower than. 2 . We do have a 10year yield here,s the oneyear chart. This is back near the oneyear highs above 2. 6 . 2. 61 to be precise. Of course utility stocks are high dividend stocks. The dividends look less attractive when yield climbs. When we have yield climb, typically this does push utility stocks down. We look at a mat smaering of utility stocks well see quite a bit of weakness here. Nrg, duke energy, all trading her but one stock bucking that trade, in fact the top stock of the s p 500, a. E. S. Climbing higher, the value act a stake in the International Power<\/a> producer and the c. E. O. Is now on the board in a bushrd toward Renewable Energy<\/a> away from fossil fuels. Scarlet all right, thank you so much. This is bloomberg. Courtney this is no ordinary car. You might not be able to tell by just looking at it but its inspired by one of japans biggest natural disasters. Former toyota car designer came up with this idea after watching cars with people inside get swept away in the devastating 2011 tsunami he thought if cars could float instead of sink into the seas then maybe more people could be saved. This is his answer. A small, watertight electric vehicle so basically a floating car. Take a look. It can go from the road, straight into the water. So it can float during floods and even cruise at low speeds to get you where you need to go. Then it can take you back onto land without a hiccup. The car is being built by a startup that aims to make 10,000 of these floating cars within the next two years and hopes to go public by 2020. They hope customers will be table use the floating capabilities in emergencies even if its only once in a lifetime. Julia were back with Niall Ferguson<\/a>, awe tchr of the square and the tower. How sit going to go . Hes the president , theyll be polite, therell be polite applause. I guess hell give a speech somewhat like his warsaw speech, itll be ok. Davos hates trump and what he stands for. Julia hes the antithesis of what they stand for. On the other hand, hes powerful, hes the president of the United States<\/a> and davos likes power. Theyll be polite, a somewhat frosty reception. The interesting thing about davos, its the network of network, thats where people go who live to network. The question, what will go on behind the scene, i dont care about the speeches and sessions. Whats big at davos is the meetings. Scarlet who is at the piano bar at midnight. Trump wont be there, but therell be meetings going on back stage. Itll be interesting to see if any of the european leaders, macon will be there, german chancellor an yes la merkel, will they meet with trump . Is anything going to get done . Scarlet whats the most important meeting for him, do you think . If you think back to the way macron played him, the longest handshake in diplomatic history, the question is, can macron help trump in europe. Trump is deeply unpopular in europe, even more unpopular than manhattan. T hes been winning on one thing, european contributions to nato. I sense theres a possibility that that relationship with france can yield something for the United States<\/a> and compensate for trumps unpopularity among european populations. Scarlet theres a bromance there. Julia and thank you, Niall Ferguson<\/a>. Oh, were not going to break . Were waiting for the president. Hes there rallying support. President trump good job, good job you do. Were honored to be joined by the secretary of the treasury, steve mnuchin, director look at that, steve. They must know you. Theres about 5 of the group. The director of national cohn, theouncil, gary tax guy, our tax man, gary. Did a good job on those taxes. Everybody being helped by those taxes, huh . Good tax cut. [cheers and applause] as well as a number of outstanding members of congress. Representative lou barletta. Hes been a friend of mine for a long time. Heres another one, mike kelly. Wont have you go through this. Pat meehan. Thank you, pat. Great job you do, pat. These are like real friends of mine for a long time. Representative keith rothfus, does everybody know him . Keith rothfus. Thank you, keith. Thank you for being here, keith. A man that everybody in washington knows and so respects, bill shuster. Bill. Thanks, bill. Epresentative g. T. Thompson. And you know this, g. T. , a person that people are hearing more and more about, a real friend and spectacular man, rick sacon. And mrs. Sacon. Thank you for being here my daughter ivanka is also here with us today. She worked so hard on the Child Tax Credit<\/a>, ivanka, come up, come up here. Come on. Come on up. And a very special thank you to george cook for hosting us. Done a great job. Really a great job. Thank you. Thank you. What an incredible company. Ivanka are you going to say a couple of words about the Child Tax Credit<\/a> . Boy, did you work hard. Hi, everybody. It is always amazing to be here in pennsylvania and to be here with all of you. We work sod hard on tax cuts and tax reform and the president , my father, was very specific about what he wanted to accomplish. It was so core to him to support hardworking, middleincome families an the Child Tax Credit<\/a> is key to doing that. So its going to be a big win for everyone in this room and everyone across this country and we are very, very excited about that. Doubling the standard deduction. The Child Tax Credit<\/a>, all of these elements that make this a very Family Friendly<\/a> plan but also enable Great American<\/a> businesses like this one to thrive and be competitive in a global landscape. Were very proud of it and america is just starting to realize how great our tax cut plan is. So more of that to come. Thank you for having me here. Thank you. President trump thank you, baby. Thank you very much, ivanka. She worked hard. Shes a hard worker. All our kids are hard workers. They work and we love to see it. Theyre doing a terrific job for our country. Ive come to the great city of pittsburgh to stand with people. And those people are incredible workers. And to show the world that america is back and that we are coming back bigger and better and stronger than ever before and were making our own product again. And were opening up our factories again. And when you take a look at whats going on where toyota is coming in and the other day you just saw chrysler announce theyre moving from mexico back to michigan. You dont hear that too often. With a big, big monster factory, going to spend a lot of money. At the center of americas resurgence are the massive tax cuts that i just signed into law. And its also reform but i usually just say tax cuts because thats what people they dont want to hear about the reform, the reform is very important, we dont have to go into it but the tax cuts are the most significant tax cuts, most significant reform in american history. Tremendous tax relief for working families to small businesses, big businesses that produce jobs. For just about everybody. Tremendous numbers. And youre already seeing whats happening. Youre seeing whats going on. The signs of americas comeback can be seen at Companies Like<\/a> this one which just had its most successful year in its 35year history. Congratulations. Good job. [applause] and i just learned from the powers that be that h k equipment will soon be making a 2. 7 million capital investment, thanks to the new tax cuts. I appreciate that. And the workers appreciate that. Doing great. Great job. Great equipment. That means more growth and ultimately it means more jobs. So con dwradgelations. We have created nearly 2. 2 million jobs since the election. [applause] the Unemployment Rate<\/a> is at now an 18year low. I would say 17 years, now it just lifted to 18 years. The number of americans applying for Unemployment Benefits<\/a> just hit a 45year low. Something im really proud of. What do you have to lose . Africanamerican unemployment is at its lowest level ever recorded. [applause] female unemployment is at the owest level in 17 years. Hispanic american unemployment has hit its alltime lows. Lowest ever. Pensions and retirement accounts are surging in value as the stock market smashes one record high after another. How many people have 401ks here. Youre brilliant investors. Ive had people come up, sir, my wife thinks im the most brilliant investor. Because i made 42 in the last 10 months and thats pretty good. But people are happy. Anybody unhappy with the 401k . I dont think so. We can keep it like this, were going to win a lot of elections, that i can tell you. Its something. Its something. [applause] its the economy, stupid. Did you ever hear that one . Its the economy. As soon as well, only a few weeks from now, millions of American Workers<\/a> will be seing the signs of americas comeback in their paychecks in february. Very simply, your paychecks will be much bigger because under our tax cut youll be keeping more of your hardearned money. We are doubling the Child Tax Credit<\/a>, increasing the refundable credit by 40 , 40 , not 14 but 40 . And we are making the child credit available to more families than ever before. Not even close. When we began our push for tax cuts, i promised that our bill would result in more jobs, higher wages, and tremendous relief for middle class families and that is exactly what we have delivered. Theres only one thing, even i never knew how big it would be. Its much bigger. And you see it. Than anybody anticipated. We kept our promise. In pennsylvania alone, families 11 see a tax cut of about illion just this year alone. Thats pretty good. A typical family of four earning 75,000 will see an income tax cut of more than 2,000. Its like a 2,000 raise. Slashing their income tax bill in half. Many will save much more than that. Ken wilson is a great example. Wheres ken . Ken wilson. The legendary ken wilson. Hi, ken. Come on over here where we can see you, ken. Youve got to be happy with this. Is ken doing a good job . Kens doing a good job. Everybody knows ken come on over here. Come on up here. Come on. You can make it. Hell figure out how to get that thing open. If he cant do it nobody can. Thats what he does he works on machinery all the time. Ken joined h k 14 years ago as a mechanic and worked his way up to become a project foreman. Because of our tax cuts, ken will save almost 2,200 in income taxes. 2,200. So ken you just got a 2,200 raise. [applause] and if i had a head of hair like that, i would have been president years ago, ken. Years ago. Weve nearly doubled the amount at a rate of zero. Did you see a difference . Absolutely. Say something to your workers. Its not just me, its everybody as a whole this company is an incredible company, we work with a bunch of great people. Everybody pulled together this week and pulled this off, it was a sight to see, something to always remember here. So i thank everybody, thank you, mr. Trump. President trump thank you, ken uric did good. He didnt know about that. Didnt know at all about that. Good job. Because we substantially reduced tax rates on american companies, economists estimate that annual Household Income<\/a> will rise by an average of 4,000. Think of that more than two million American Workers<\/a> have already received a tax cut bonus from their employers, pay raises, more money, for retirement. Checks as high as 2,000 or more, all because of our tax cuts. And it hasnt even been a month since i signed the bill. Its turned out to be much igger than we all thought. Even the people that did it, right, gary, all the congresspeople that voted for it, that worked so hard. Nobody thought that the companies were going to step up and pay all these great bonuses to people. At t started it. But they came up and they paid all of these bonuses. A florida Software Company<\/a> Just Announced<\/a> 1,000 tax cut bonus for its work force. Apple Just Announced<\/a> they are giving their employees tax cut bonuses worth 250rks0 each. And because of you are business tax reforms, apple has Just Announced<\/a> that they are bringing 350 billion and putting it into investment into our country. 350 billion. And when i heard the news yesterday, and tim cook is a great guy, the head of apple. When i heard the news, i heard 350 billion, i said, you mean 350 million, thats going to be a beautiful plan. But he said no, its 350 billion, and i just called tim cook and i thanked him. But i dont imagine theres pfer been an investment that big in this country by a company. And just think of what that means. Theyre going to build plants. And i think some of you remember, i said, i will not consider our Economic Situation<\/a> complete until we get apple to stop building some of those massive plants in the United States<\/a>, theyre going to build plants, theyre going to build a big campus, theyre going to town. So we want to thank apple. 350 billion. [applause] here in the great commonwealth of pennsylvania, thousands of workers have received tax cut bonuses thanks to employers like comcast, american airlines, p. N. C. Financial, names im very familiar with. One of those hardworking pennsylvanians is kevin hardess, a marine corps veteran who are received a bronze star and purple heart for his Courageous Service<\/a> in three tours in iraq and a great, proud person where is kevin . Where is kevin . Kevin . He didnt want to come up and speak he started working for comcast in 2016 and last week he received a 1,000 bonus check thanks to our tax cut, right out of comcast intoorks his bank. Now hes taking his family on a welldeserved vacation to visit his grandparents in florida. Right . Hank you, kevin. See you in florida. Thank you for your service, for your patriotism and congratulations on the bonus. Not only are we seing the benefits of higher wages, but were also seing the creation of new jobs. Pete oconnor owns a Personnel Company<\/a> called carol harris staffing here in pittsburgh. Pete said businesses of all kinds are seeing increase in demand and theyre hairing more and more workers and theyre hiring more and more workers and thats great news not only for pete but for all the people in pittsburgh, for the citizens of pennsylvania, and americans all across our country. Where is pete . Pete. Thank you, pete. Seing a big difference, right . Were ensuring the forgotten men and women of our country are never, ever forgotten again. Remember, the deplorables. The deplorables. Were all deplorables. Who would have thought that was going to turn into a landslide, right . Who would have thought that was going to turn. In that was not a good phrase she used. Some things youd like to have back. And the good news keeps pouring in. Americans monthly utility bills are also going down because major electric companies have announced they will pass their savings from taxes on to their customers. Tremendous reduction in Certain Companies<\/a> and Peoples Energy<\/a> costs. That means were not only seeing higher wage bus Lower Energy Bills<\/a> and thats because of the tax cuts. But its also because of the regulation cuts. When i spoke to the folks in the plant, they said the biggest thing is whats happened is regulations. Cutting of the regulations. We had regulations, but theyre fair and theyre reasonable. And theyre actually just as stringent. But you go to one group for ok you dont have to get it 19 different times or seven times or go to different agencies. Its within the realm of reasonable and thats why people are opening up their expand theyre expanding and theyre hiring more people. Our tax bill also took a historic step to restore health care freedom. No longer will the federal government punish you for fines if you cant afford an obamacare mandated health plan because we repealed obamacares cruel, it was cruel, individual mandate. Where you were supposed to go out cheers and applause] and you pay in order not to have to buy health care. Think of it. It should have been rejected a long time ago but a by a lot of different people, including the courts, surprisingly. But we were able to repeal it. We got rid of the individual mandate. And youll see what that means. It is such a big factor for so many people. It was so unfair. Its gone. Weve also opened up anwr in alaska for energy exploration. Creating even more jobs and more and more Energy Savings<\/a> but thats the biggest one. Theyve been trying to do that since ronald reagan. For over 40 years theyve been trying to open anwr, we got it open. Theres never been a better time to hire in america. To invest in america. And to believe in the american ream than right now. There is no limit to what we can achieve when we set free the dreams of our incredible people. Youre incredible people. Americans crossed oceans, tamed the wilderness. Dug out the panama canal and launched a man onto the face of the moon. American hands and fwrit poured the concrete in our highways and forged the steel in our skyscrapers. Americans built the hoover dam, the magnificent hoover dam if youve ever seen it. The empire state building. They built it in one year. Nobody knows that. One year. It was actually less than one year. The empire state building. We won two world wars. Americans do anything. Build anything. And create anything as long as we have pride in our country, confidence in our values. And respect for our Great American<\/a> flag. [applause] right . Because america doesnt belong to the washington power brokers. It belongs to you. I think weve taught them that. Doesnt mean its easy. It doesnt mean its easy. Its nasty in washington. But step by step by step, just keep going, right . Going. It is a nasty place. But were getting it. Nobody thought wed have this kind of success so quickly. Thank you. It belongs to the American People<\/a> with our destiny in your hands, america will once again be a nation that thinks big, dreams bigger, and always reaches for the stars. Nothing will keep this incredible nation of ours down. Nothing will stop us from reaching the highest peaks. Because nothing is stronger than the strength and will and spirit of the American People<\/a>. Ou are the ones who will shape americans destiny, especially all these beautiful young people in the front. You are the ones who will restore our prosperity. D you are the ones who are aking America Great<\/a> again. [applause] thats y of you know, what i talked about. Make America Great<\/a> again. America first. We put America First<\/a> now. Were doing trade deals. Were doing a lot of things that i said wed be doing. Its not easy, these other countries have become very, very spoiled with taking advantage of us. But take advantage of us no longer. Because now we want their country for them, it should be their country first, but for us its America First<\/a>. Hats the way it is. So i want to thank the people of the great, great, great state of pennsylvania, you remember that big night on november 8. Donald trump has won the state of pennsylvania. [cheers and applause] right . And i want to thank the people of this state, you are my friends, you are truly great, great people. And you are making america tick. You are really very special. Thank you all for being here. God bless you all. Thank you. Thank you very much. Thank you. Cheers and applause] scarlet that was President Trump<\/a> speaking outside pittsburgh, kind of a Campaign Rally<\/a> feel there as he was campaigning for the republican candidate for the house. Joining us now with more from capitol hill is bloomberg chief washington correspondent kevin sur lee. Usually we wrap up the headlines from the president s speech. In this instance its pretty much a victory lap from the tax law and the changes that republicans have made, when it comes to lower tax rates and what companies can do with lower tax rates, return taxes to shareholders, enable them to spend money on facilities and give raises to their employees. What was not mentioned, kevin, was any indication of immigration or the looming possibility of a shutdown. No, he also took a political swipe at Hillary Clinton<\/a> with the deplorable comment that did feel for all intents and purposes it was a political rally he took a swipe at hillary inton, left the stage to campaign music, cant always get what you want. He endorsed the republican in that special election thats coming up in march in a state that really did put him into the white house. Pennsylvania, a state that hadnt gone for a republican president ial candidate since 1988. President trump becoming the first republican since quite some time to carry that state. But from a business perspective , he gave a lot of credit to apple. We hadnt really heard President Trump<\/a> or any republicans up here on capitol hill talking out in favor of tim cook or of what apple has done. When apple testified yesterday up there on capitol hill they did not thank the administration or credit the administration or the republican tax plan for their business plan. But President Trump<\/a> saying he spoke via telephone with tim cook, giving them a huge show of support. But here on capitol hill, all focus is on whether or not this government is going to stay open come midnight tomorrow. Julia even if it does stay open, how long will they be able to put off a decision . Five days or a month . There does seem to be some confusion. And the president confused everybody with his tweet this morning. Theres massive confusion. Aye been talking to sources in both parties here on capitol hill, they have virtually no ideaen whether this on where this Administration Stands<\/a> on the issue of immigration or on the continuing resolution. Most think the government will stay open until february 16. The president s tweet about the sixyear extension of chip contradicting his senior advisors, its a lot of confusion. The house expected to vote at 7 00 p. M. Tonight. Scarlet well be watching that, evin, thank you so much. Lets head over to julie. Julie joining me for todays options insight is scott, joining me from chicago. I want to jump straight to your trade, im not sure how much time we have at this point. It has to do with earnings. Its a postearnings trade instead of a preearnings trade. Youre looking at Goldman Sachs<\/a>. What do you think one should do here following earnings an following the stock going down . Yeah, thanks, julie. You look at what they have, they had a mixed bag of news. A lot of good numbers, a will the of good things, revenue, income was great, discounchting what theyre taking as a charge from the new tax law. Consumer banking, Investment Banking<\/a>, great numbers. Huge share buyback. On the flip side, some metrics that werent so great, Investment Banking<\/a> was so low because of the low volatility in the marketplace here. And you know what could be significant is that the proposed credits that theyre now going to get from the new tax laws, many analysts thought theyd be paying as little as 17 now 24 . Stock is eing said, trading and trending a lot of volume. What i like here in gelledman sachs is not necessarily that the stock is going to bounce back or rebound in the near future. I love selling a foot spread here. If he stock goes down, i dont mind owning it. What im doing is selling next week, january 26 expiration, 250, 247 1 2 footprint. I can collect about 1 for that. My max risk is 1. 50. Its a 2. 5 foot spread. What im saying is is if the stock continues to trend down to the 249 area, im willing to buy it there. Just stays flat here, goes up a little bit, ill collect that entire credit. So yes, postearnings trade really Good Opportunity<\/a> i believe to get in to Goldman Sachs<\/a> ithe here. Julie all right, scot, we are out of time. Thank you for laying out that trade clearly for us. Scott bauer joining us there. Scarlet a quick reminder, catch all our interviews on bloomberg tv go. Find breaking news and charts. Heres Niall Ferguson<\/a> from earlier in the hour. This is bloomberg. Mark im Mark Crumpton<\/a> with first word news. A fairly short on the votes they need, Senate Republicans<\/a> are saying a stopgap bill to fund the government for just a few days is now under discussion. It would allow talks on immigration and a longterm budget to continue without partially shuttering federal operations. Arizona senator jeff flake says a five day build lasting until january 23 has been suggested, although john cornyn of texas says most gop lawmakers will not agree to that. Earlier Senate Majority<\/a> Senate Minority<\/a> leader Chuck Schumer<\/a> said the possibility of avoiding a shutdown, quote, doesnt look good. Schumer echoed majority leader Mitch Mcconnells<\/a> remarks from thursday, saying President Trump<\/a> has not been clear on what he hopes to accomplish with the stopgap spending bill. He has given only vague indications about what he wants, even at this late hour. Mitch mcconnell was right. He doesnt know what the president stands for. Mitch mcconnell should have the strength and courage to start negotiating on his own for the good of the country, but that hasnt happened either. 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