Today. Youre going to have people getting jobs again and we are going to make our own product again. It has been a long time. Scarlet that was President Trump speaking moments ago. He made some comments about bob mueller saying he is not concerned about Jeff Sessionss interview with bob mueller. He also commented briefly on the tariffs imposed by solar panels saying this will be about bringing jobs back to the United States. Julie he said the stocks are higher today. First solar which is pretty much the sole u. S. Owned Panel Manufacturer at this point. Has now turned lower. Many of the analysts who track this solar tariff situation have the tariffs werent necessarily as high as the highest expectations and that the outlook was already priced into some of these. Were talkingle about 35 tariffs. Lets bring in Kevin Cirilli at the white house right now. Is something people have been waiting for for a couple weeks and when it finally came the actual bite was not as bad as the bark. There wont be a trade war. With is headed to meet Global Leaders in davos. This comes at a time in which we have heard today from the south koreans. And also from thethis comes at. Koreaand south criticizing the u. S. Position on these executive orders. Have the president making comments on the signing of the tariffs as well. Supporting industry discussion to resolve duties on these and similar products in the United States and china. Support a resolution that is in the interest of American Workers and also the american consumer. Going to benefit our consumers and we are going to create a lot of jobs. Our action today helps to create jobs in america for americans. It will provide a strong incentive for lg and samsung to follow through on their recent promises to build a major manufacturing plant for washing machines right here in the United States. When we do this a lot of manufacturers will be coming to the unit states to build washing machines and also solar. For both solar and washing machines these executive actions uphold the principle of fair trade and demonstrate to the world that the net states will not be taken advantage of anymore. Will not be taken advantage of anymore. And our workers are going to have lots of really great jobs with products that are going to be made in the good old usa and thats what this is all about. So im going to start signing. If will go here first. This is to facilitate positive fromtment to competition imports of large residential washers and washing machines etc. Thank you. From its a very big industry. Youre going to have a lot of plants built in the United States. They would have never come unless we did this. Big industry. A lot bigger than people would understand. This is similar but this is for solar products. Productse making solar now much more so in the United States. Our countries have decimated and those companies are going to be coming back strong. This is panels and products generally. Solar. Potentially great industry in this country but now we will be making it in the United States. A lot of workers. A lot of jobs. These are our letters to speaker sayinghouse essentially lets go. We are done. We are ready. And this will start very rapidly. Ok. This to the speaker. Peni think i will give this to mr. Robert lighthizer whereas you know negotiating a new deal with nafta. We are renegotiating or deal with south korea which has turned out to be a disaster for this country. It was a deal that was going to create 200,000 jobs and we lost 200,000 jobs. Are renegotiating that. Nasa is moving along pretty well. I happen to be of the opinion that if it doesnt work out we will terminate it. I think you are doing pretty well from what i understand so we will he how it all works out. Other tradebe doing deals. We are in the process of negotiating with other countries also. All of which have treated us very unfairly. Poor representation for many years. It has hurt our workers. It has heard our factories. Youre seeing whats happening with the stock market. People are appreciating what we are doing. The biggest thing we have done probably is regulation followed closely behind by the greatest tax cuts in the history of our country. I think regulation is on par with that. Us. T of people are watching im going to davos. We will be talking about investing in the United States again for people to come and spend their money in the good old usa. Thats what they are doing. We have massive amounts of money coming in. Apple Just Announced they are going to spend 350 billion in the United States which i believe is the largest amount ever invested in this country by a company. 350 billion. Place. L over the theyre going to build a magnificent campus. We have other people coming in. Other companies. Been been called by 10 major executives and they are going to be announcing very shortly Major Investments in the country and Major Investments for the people of our country really almost more than anything else. We are very proud of it and thats why the stock market is reacting the way it is. Thank you all very much. Not at all. I didnt but i am not at all concerned. Thank you all very much. He didnt at all. He did not even a little bit. President hat is the speaking just moments ago. He was signing the tariffs that impose 30 tariffs on foreign made solar panels. He said this was a move to , benefit. S. Jobs consumers and encourage more companies to produce and manufacture in the u. S. He also talked about how nafta is moving along pretty well and they are renegotiating a deal with south korea. He tied it back to the stock market saying people really appreciate what the administration is doing with regard to trade. Julie as usual President Trump conflating the economy and the markets which we will be talking about later on. I want to get back to kevin a button up this conversation. I want to ask you about what comes next in terms of tariffs. The president mentioned aluminum and steel. Something that industry has been waiting on. What do we know about timing and content of that . Its going to come down to fasttrack authority. Once the president of the United States asks congress for fasttrack authority than he is able to negotiate really finalize the deal with nafta. There is a deadline coming up. Talks of nafta will actually come to fruition. Its the end of the next couple of weeks so we are right around the corner from it. Folks in thelot of negotiations are really eyeing the congressional role because thats going to be a key sign the talks are going to finalize. We should note the president saying those talks are going well. That is a very different tone from what we have seen from his twitter account. There was some concern from mexico as well as canada about whether the president would decide to back off on that. Now he is off to davos. Scarlet a different perspective depending on who you ask and when you ask. You. Cirilli, thank u. S. Markets closing in under two hours time. Another day of record highs for the major averages. The dow the s p and the nasdaq all higher. The s p 500 modestly higher. Check out the tech heavy nasdaq. Nasdaqe s p 500 and the up three days in a row. Investors really liking earnings plus the boosting of the corporate profit outlook from tax reform. A risk on like picture. Check out the 10 year yield. Rallying once again. The 10 year yield down for a second day in a row. Perhaps around the drama in d. C. This chart may suggest that we could see the bond rally continue. We are looking at the net short positions on the 10 year and five year yields. You can see that they are both near the tenure in particular at a record low. Shortst time the 10 Year Position was at these levels we actually saw a bit of a rebound. An interesting chart to keep an eye on. Julie next, the bulls keep running. Firm cio of Investment Strategy joins us coming up. From new york, this is bloomberg. Scarlet this is bloomberg markets. Im scarlet fu. Julie im julie hyman. Stopere anything that can the bulls from running wild this year. Not much according to goldman sachs. The constant cascade of warnings that we are in an equity bubble. Joining us now is sharmin mossavarrahmani. Thank you for joining us. We really appreciate it. We have heard that cascade of warnings. Why do you think its a good idea to look at the Data Available and you are not coming to that conclusion . We have had the view that we are not in a bubble for the last several years in the naysayers saying we are in a bubble have maybe from 2013 or so. We got fairly expensive valuations in late 2013 maybe f3 or so. And since then we have been saying that you cant just look at equity valuation. You have to look at Everything Else thats going on. If the economy is recovering well in a very balanced way meaning all sectors are performing well in the private sector has do leveraged the Banking Sector is working well then you need to say what are the odds of a recession . When the odds are low probability of positive equity returns is very high. We also have a low inflationary backdrop and when you have low inflation and low volatility of inflation on average market multiples are substantially higher. People like to look at various market valuations. If you look at these valuations and compare them to their longterm median you would say the market is 60 to 70 overvalued. If you actually look at them where volatility and inflation is low and overall inflation is low market valuations have generally been much higher. Like 20 to 30 overvalued. Thats a very different message one would have. If we have low probably of recession good Global Growth synchronized across the globe and the imf has come out with numbers saying its the largest number of countries are in growth mode versus any slowdown or recessionary mode that becomes quite important. The macro environment is very benign and very supportive for equities and you say that u. S. Equities are not in a bubble. Are there any parts of the equities universe that are looking bubble like . Fantastic set of the reports Available Online for anybody who wants to look at it. What we do is compare different liners versus the fitted and we look at sectors in 2007 and 2008 and compare it to 2000. The sectors are significantly overvalued or undervalued. Scarlet even technology. Thaterybody thinks technology is the key driver of that thety market are driving the equity markets and our view is actually that people are giving way too much credit to things being the drivers. If you actually look at the arey markets and our view is actually data it is correct that you could take the fangs out of the s p. Fangs and say there is a portfolio that hasnt invested in the fangs but is fully invested in the rest of those assets. About 19 . Be up the thought that everything is driven by the fangs and the sector is not a correct assumption. Julie i want to sector also men politics. There was an interesting story today that looked at the half between Consumer Confidence and the president s Approval Rating. We have a chart of that on the bloomberg. Consumer sentiment is in white and we have the job Approval Rating in blue. Unusual that we would have such confidence in the economy and yet and Approval Rating that is so low. I would ask you how big a risk is politics. The markets have priced it in as pretty much no risk at all. Do you think there is a Political Risk of this year . When we think of the risks we think of the broader geoPolitical Risks. North korea. We speak to our various geopolitical experts and they say the risk of a significant military engagement with north korea some people would say its 10 . The highest feedback we have gotten is 50 . Riskcould obviously be a that would derail this market and the economy because it would be quite significant. Things could become quite serious. Obviously issues in the middle east could become significant. Terrorism is always a risk and cyberattacks. When we thinkand of domestic politics one of the investment teams we have now had is that u. S. s preeminent. When you look at the major structural advantages of the ad states and compare it to any other part of the world the gap between the u. S. And the rest of the world is significant and in fact widening and no one person, personnt, policymaker, in the house or senate could completely derail this economy. Its the strength of the underlying institutions that we have a lot of confidence in and thats why we stay invested. There could be volatility. It doesnt mean we dont think the probability of a 5 or 10 downdraft isnt high. That is not something we recommend our clients trade at all. Especially when you think about the tax consequences of paying Capital Gains tax in new york or california or even in florida. The market has to go down a lot for it to be worthwhile trying to trade those. Scarlet if we get a 5 to 10 Market Correction what would be the catalyst for it . Could it be President Trump initiating what starts to look like a trade war . These tariffs could be the start of bigger actions. We have said one of the risks would be u. S. China relations and it would be trade frictions as well as the geopolitical issues and whether china is helpful with north korea or not. Our view is that will be more like trade frictions are rather than significant trade wars. Could it trigger a 5 or 10 correction. Could it be so much optimism that any kind of bad news creates a correction. Yes. Easily. Scarlet sharmin mossavarrahmani, thank you so much. Trump will be showing up in davos later this week. Erik schatzker spoke with Stephen Schwarzman of lack stone. He began by asking steve what we should expect from President Trump speech in davos on friday. I think he is basically economically focused. With theconsistent World Economic forum and he has spent a lot of time in that area whichr its on tax reform was successfully concluded and whether its getting rid of regulations and other things to boost economic growth. So i dont know whats in the there but i would assume will be a bunch of time spent on those type of themes and the goodness that can happen when you get an economy growing at a much faster rate than we did for the previous eight years. Blackstone is a global investor. You travel to globe almost incessantly. With that in mind is there a risk to the president and to the United States if he were to beat the America First drum too loudly . I think it has been pretty loud. I dont know that you could make it louder here. My sense is that wouldnt be exactly why you would come to davos. I think there must be like a more sophisticated presentation of the same type of theme. At the moment the u. S. Is doing quite well. There must be like a more sophisticated presentation of the same type of theme. So is china and the other Asian Countries like india. And so is europe. We have a simultaneous expansion going on. Erik you were a big part of Corporate Tax reform. We got a lot of it in the tax bill that passed just a few weeks ago. Not everything the Trump Administration did in its first year can be considered a success. What would you like to see the president and white house do differently in the second year of his term . I would like to see them sinces infrastructure its an area that both the republicans and the democrats want to do something with. Its a 2 trillion estimated fall short in the United States and if you traveled globally you would feel that missing 2 trillion when you return to the United States. So i think thats an important thing that they should be doing. Scarlet Stephen Schwarzman talking earlier today with bloomberg in davos. Time for the Bloomberg Business flash. Kushner companies secured a 57 million loan last october. The loan was for a troubled development in new jersey. The amount is likely a small piece of what would be needed to complete the project which calls with moreory towers than 1500 residential units. The next maker kimberlyclark is coming up to 13 of its reports or as many as 5500 workers. The cost cutting is aimed to design profit margins. Changes will make the Company Quote leaner, stronger and faster. Its an all or nothing deal for the founder and ceo of tesla motors. Musk aas granted elon stock award. Stock options could make him almost 55 billion dollars. In return he agreed not to get a salary or a bonus. It appears to be teslas way of ensuring that he will stay on. And that is your business flash update. For an enrollment in u. S. Colleges is on the decline for the first time in 12 years. The reasons behind the trend and what it means for americas economy. We will discuss. This is bloomberg. Scarlet this is bloomberg markets. I am scarlet fu. Higher on inventory declines and opec signaling production cuts that will last a year. The big mover in the Energy Conference was natural gas, up more than 6 , almost 7 now on expectations of and above normal supply drop due to a cold weather in the United States. We see modest losses in the year. I