22 people were killed in the attack in the intercontinental hotel. Nasa tv returned to the airwaves to transmit light images of two to then astronauts International Space station. The International Space station passes over the north. The pacific ocean. Installing a new mechanical gripper on the International Space stations robotic arm. Repairs were because of wear and tear. Its been in orbit since 2001. Operations were largely unaffected by the three day shutdown. Watchial personnel kept at the space center in houston. Powered by more than 2700 journalists in over 100 and 20 countries 120 countries. Im Mark Crumpton. This is bloomberg. Live from bloomberg world headquarters, im julie hyman. Iscarlet im scarlet fu. Joe im joe weisenthal. Julie the s p is at record highs in the 10year is rising. Joe the question is, what you miss . Scarlet an industry led by china, but u. S. Companies may have both winners and losers from this new policy. Regulatory push back, but it may not be all bad. The chief Investment Officer says the attorney general opposition to legalizing marijuana could be the Tipping Point for the industry in a good way. Oscar munoz hopes to redeem himself today. Those that question his leadership. The s p 500 has risen over 5 since the start of the new year. Announced 150 billion dollars in m a and tiny shares are on an 18 day winning streak. How long before the sugar rush turns the market sick . Bloomberg macro strategist, asking that question today. Today,you pointed out thats not what its called. The alliteration was there. All measures of risk bond are at high levels. Julie what tips it over . That is quite literally the Million Dollar question. Seenprosaically, you have stocks outperform bonds. So typically when that happens, you see Pension Funds look to rebalance. Outperformance mean they are overweight equities relative to bond and they would push that back. It is a temporary phenomenon. The fed may hike rates four times rather than three times. You look at a full constellations of signs that exuberance is dominating world markets. ,ne chart that you have here eight shares in hong kong going absolutely ballistic. Tell us about the winning streak and how historic it is . Gone down since the first day of trading the day after christmas. That is sort of the western christmas, not the orthodox christmas. Days, which is basically longer than any streak youve ever had any u. S. Longer than any streak youve had in the developed market. Longer than any streak youve had in japan. Brazil in the 1990s when the currency was getting obliterated. China, when china was properly communist in the early 90s and the shanghai composite went up 99 Straight Days which i would argue, again, more administrated by the authorities than by supply and demand from private individuals. Remarkable because a lot of the scenes we were seeing continue to drive the market forward today. , we see a the case continuation of the bullishness. What has changed . Is there a reason why it is a rush of money . They have new allocations for their 401 k . It goes beyond Retail Investors and 401 k . You dont get these sorts of moves across without institutional allocations. In the context of global bonds going down and would suggest big money is taking some dough out of low yield bond markets and putting into that riskier equity market. Taxess you would argue reform in the u. S. Came in december when things were liquid. Playing some catchup in this country in january. The chieftalked to investment strategist from Goldman Sachs, and she was also on how markets globally and especially in the u. S. Are going to perform. When she talks about risk to gain, she talks about things north korea, unrest in the mideast, Cyber Security threats. Nothing that is particularly imminent. Those are all wildcards and might originally developed. There arent that many obstacles seemed to the growth we are experiencing. Ofwhen there are a number obstacles, you talk about the wall, going back 15 or 20 years. The real risk to markets is the unknown. Be on a davos panel and Say Something like that and they will think its very wise. Is very wise. It is very wise. I want to go back to something you said about taking money out of bonds and putting it into equities. Remember five years ago, people were talking about the great rotation. Is that what you are describing . It kind of is, i think. I believe that Public Pensions have a reasonably large allocation to equities. The calpers of the world, its really on the corporate and whate my work independence consultants independent consultants have done, Corporate Pensions have taken money out of the stock market and put it in the bond markets. , as is what were seeing reversal of that trend. Stocks surge in cash continuing to burn. Why did you include this in your list of the willy wonka market . When the market exclusively on the good news and ignores the bad news like burning cash like elon musk is running netflix these days. 99reminds me of some of the and 2000 episodes with a focus is so narrow and exclusively on the tech ratio. You do get a little uneasy. I laughed it scarlet yesterday for bringing up gap etfs. Which i felt guilty about. Something like Procter Gamble caught my eye today. Seemingly, the numbers looked ok. But you get it from volume growth and not from pricing pricing power. If the volume is growing up, it would seem to be a good thing. When you look at Something Like we find examples of companies that fit both . I am always been amused by earnings season. At, they do look fantastically well. You never really know what is priced dan on an individual stock basis, what in the price, and what investors are looking at. And what causes people to sweep some money off the table. The worldknow is stock values are not going to double this year, which is the pace we are on so far. At some point, youve got to figure that things will slow down. At of know how much time weve got, but Standard Poors published stock in 1928. The s p started publishing a stock index, there has been 144 months. In only one of them have you not three4 or more drawdown months before or three months after that happens. Uncharted territory. Coming up, President Trump is imposing tariffs on modules imposed by the renewal and Energy Industry in the u. S. Why are Solar Companies on the news . We will discuss. This is bloomberg. Scarlet what did you miss . Solar companies breathing a collective sigh of relief after President Trump impose tariffs on u. S. Imports that were lower than most companies feared. The duties may undermine the economics of u. S. Removal energy but wont raise the cost of a clement far beyond recent levels. Lets cover solar and clean energy for bloomberg news. Unpack this for us because the companies that brought up the complaint to the u. S. Or u. S. Entities of foreign companies. And solar Energy Industry in the United States were opposed to any kind of tariffs saying it will lead to job losses in less revenue. Who benefits . Its a mixed bag. There are u. S. Manufacturers a foreign entities and they want tariffs. The level they requested was much higher and so for them, it is sort of lukewarm. Its not to the level that we wanted it to be. If you are tesla, you think it might be really high. Pretty modest. In my be 3 more to put panels in your roof than last week. Julie and when you are putting panels on a roof or there is utility building a big solar farm, how much of that is subsidized. I am thinking about putting a panel or installation on my roof, how much is this because i will get that back from the government. There is a federal subsidy. Its hard to unpack it. If you look at solar power versus natural gas fire, it is very competitive now, particularly in nevada, california, arizona, but it does rely on subsidies. Joe ok, so theres a tariff. Its not as much as companies wanted, its less than some companies feared. Is this going to meaningfully change the trajectory of the industry . Or will this be marginal . Because prices of solar panels have dropped so much, they are still cheaper than they were even in 2016. Is this a minor course correction . It is more minor than major. It is not the worst case scenario. Aroundight be job losses 23,000. In terms of the growth of the industry, it will continue panel prices pretty modest right now. It might fall further. Facts i want to ask about another country that you mentioned, tesla. Building a solar panel plants, so it will be more of a one. Cally integrated other]g over each a lot of the rivals dont have domestic panels. You said the plant is new and they are still ramping up production. We will still rely on overseas imports. Into your point, scarlet, it is not the worst case scenario. Tesla and the developer, theyre coming up to the country from china and taiwan. The mixed bag. President trump when he signed these tariffs said that a lot of people want to build plants and they havent been doing it because of the unfair Playing Field . Foreignow about manufacturers that do want to build installations in the u. S. . Is the talk about solar panels. The last eight to nine months,. T is not clear whether or not scarlet i thought trump was opposed to the clean industry. He favored fossil fuels and coal which is what he kept talking about on the campaign trail. Hes talking about bring jobs back when it comes to solar energy. Is this a zerosum gain . It is hard to say. Coal and solar are often pitted against each other but its not the actual competition. It is to hundred and six 2000 jobs. Prices, is the forecast that they are going to keep dropping . Is there any end in sight in terms of the incredible kulaks collapse we have seen. For the most part, it kept going down. I wonder if china will increase subsidies. Covering solar, climate, and cleantech, you answered every question we have. A look at the Bloomberg Business flash. A some of the biggest stories in news right now. Halloween cuts in 2016, the Worlds Largest asset manager says its overall bonus goal was in the high singledigit. They put greater focus the hiring could signal facebook is looking to apply ai research the joint business such as removing photos and videos that violate its policy. Melinda gates is backing the largest Venture Capital fund run by women. Aspect ventures rate 800 and 81 million for a second fund. Gates has been an outspoken critic of the gender gap in the industry. Our investments and women led ventures were not about being nice, but based on the big returns to be had. That is your Bloomberg Business flash. Press briefing is currently underway. Lets listen them with gary cohn, director of the Economic Council at the podium. It we were going to share President Trumps economic story and tell the world that america is open for business. We want the world to invest into america and create jobs for hardworking americans. President trumps economic agenda has unleashed the u. S. Economy and we are growing. This policy has led to a rising stock market, low unemployment, and strong gdp growth. Passing comprehensive tax reform to help level the Playing Field for our businesses and our workers. President trumps tax reform and tax cuts, 100 companies have announced policies that would create jobs, benefit workers, and grow our economy. This story will only get better as we continue to advance and rebuild americas infrastructure. Strengthen close ties with other World Leaders, and catalyze International Business support for the business agenda. President trump will reiterate that a prosperous American Benefits the world. The president will continue to promote fair and economic competition. We will make it clear that countries are not held accountable to the rules. , free president has said and open trade needs to be fair and reciprocal. I will handed over to general mcmaster to discuss our National Security priorities at the World Economic forum and the president s meeting with World Leaders. On thursday, he will have a variety of meetings with World Leaders. On thursday night, the World Economic forum will host a reception with World Leaders to honor the president. A small dinner with select European Companies to share economic Success Story and encourage them continued to continue to invest in america. They have invested in our economy, and we want them to continue to do so in encourage others to join them. Forward tont looks hearing from these ceos and how the administration can continue to grow their business in the United States. On friday, he will have more meetings with World Leaders and will deliver his beach that will empathize everything we have talked about today. Good afternoon, everyone. To president will use this reiterate the commitment to you mutually beneficial partnerships and to fair and reciprocal International Economic systems. As the president has repeatedly said and has made clear in the National Security strategy, Economic Security is National Security. The president will use his time to discuss other National Security issues including the International Effort to denuclearize the korean peninsula, our coalition to defeat isis, efforts to counter irans destructive agenda to perpetuate violence across the greater middle east as well as irans Ballistic Missile activity and the fundamental flaws. The president will meet Prime Minister may of the united kingdom. Shortcomings,s and the shared goal of denuclearizing the korean peninsula. We will also meet with Prime Minister netanyahu to reiterate americas strong commitment. To achieve lasting peace. To reaffirm the u. S. Africa relationship and discuss shared. Riorities he also met with the president of switzerland, the host nation of the World Economic forum, to discuss bilateral investment, Economic Growth, and innovation. In all his meetings, the president hopes to increase Economic Opportunities for the american people, to address and theecurity goals, president looks forward to a very productive trip. As far as Economic Growth, we just had a litany of businesses that are going to give back to the american people. Isnt it fair to give is it unfair to give the president credit for that . I would disagree with your premise completely. If they had their money in their coffers, they couldve done it last year, the year before, the year before. It seems like it doesnt seem like. As we passed the tax reform plan, all these announcements have been made. Specifically at the words of most of these press releases, all of them are talking about the regulatory relief. And we have seen the tax plan mentioned directly that companies now feel more comfortable about the economic position they are in. And we feel like the lower tax rate allows them to share more of their potential earnings with their employees. There is a 100 correlation with what we have seen, close to 200 companies and what we have done from a regulatory standpoint. You mentioned north korea, they have said that they are in talks with south korea. Is the president s policy leading to where we are now . And how big of a threat is north korea now compared to even three weeks ago . President moon has said, it is the president s policy behind a campaign of maximum pressure that has made a significant difference. What we see that is fundamentally different from a commitment that denuclearization is the only acceptable outcome. There is a good deal of coercive and we cantr repeat the state the mistakes that have happened. Mocking in the status quote is the new normal. Undiminisheds with figures. And i think it is important to recognize the north korean regime for what it is, and how grave a threat this is to the world. On the wage increases, that is coming out of future earnings , and the stock grants. The president is traveling to davos to prevent present his America First agenda. How can one square and America First agenda with goals of increasing trade . The president has spoken many times of trade deals and other International Agreements in which the u. S. Is being ripped off and other countries are laughing at us. That all ofeve these negotiations and agreements are inherently zerosum . And for america to come first to other countries, they have to or can agreements be truly winwin . The president believes we can have truly