Day, even if stocks are going to the downside. The swings we have seen today are not the largest in recent days and the volume is also dropping. Volume on the s p 500 running more than 20 below the 20 day average. We have seen volume running a little bit hotter. A bit of applause on a couple a bit of a pause on a couple of different fronts. We had an uptick in range over the past week or so as we have seen these wild swings between highs and lows. When you have today where we have seen the trading range has gotten a lot smaller. Volatility is here to stay for a little while. We may not see those swings every single day, so we have a little bit of a pause. Where we are seeing interesting action is with a couple of dental supply companies. Health care is pretty active and with these companies in particular, Patterson Companies and henry schein, they are being accused by the federal trade tomission of conspiring undermine the ability of independent dentists to get lower prices for products. Another company has been named in this suit. We are seeing a sharp downturn, there. Outside of stocks, we continue to watch what happens in the bond market. Here, weve got the yield on the 10 year. In thee bit of buying bond market is pushing yield a little bit lower. What is interesting is if you look at the short and long positioning in the treasury market, because most investors, those who are playing in the speculation game are thinking that treasuries are going to resume their selloff. Take a look at the bloomberg for what weve got going on for stocks. You have speculative positions when it is below the red line. Have positions twoyear positions have backed off a little bit. Shery thank you. This week in washington, some major themes are getting attention, including immigration and the budget. President trump met with members of congress over trade after unveiling his long anticipated infrastructure plan. Short told david westin that infrastructure funding would not fall on taxpayers. At this point, we are not advocating tax increases. But i think you see the president doing with the money he has included in the budget is that by partnering with local governments, we can spur additional investment. David for mork shery for ate, lets toss it to david the Goldman Sachs business summit in washington. David i am here with our bureau chief in washington and we just shortmark short marc say we do not want to raise taxes. Is this a dog that will hunt . Cry President Trump is only footed 200 billion into infrastructure plan and that is why it is running into so much opposition from democrats. Problem is they just give a big tax cut and did a twoyear budget bill, all of which are ballooning the deficit. He has no more nichols in the coffers to spend on infrastructure. Of publicans do not want a new gas tax want a new tax, especially after giving that tax cut. I dont see a gas tax. David december with the tax cuts and we just had the budget. There was a real deal behind this. Is there a deal behind Infrastructure Spending . Greg that is the problem. Labor unions are building those roads and bridges and they are not on board with the funding we talked about. The dont want to give trump a win. A lot of republican lawmakers are going to be up against the voters. How do you run on new roads and bridges . It is not a sexy issue. It is sort of a national crisis, but to turn that into votes at the ballot box is tough to translate. David we saw the president meeting with lawmakers in the white house on the issue of trade. Yesterday, he said we are losing the reciprocal tax. He talked a lot of tough talk about korea. Putting import duties on us. What is this about . We going back to a trade war . Greg i think we might be heading that way. Craig i think we might be heading that way. Trump put tariffs on washing machines. His commerce secretary has put up recommendations for additional tariffs. He has until april to decide. The sound like a guy who wants to whack some of these cut some of these countries. You could make the argument that that horse has left the barn. Senator pat toomey was urging the president to go slow on top tariffs, knowing that could impact our ability to build new planes and tanks. And i think trump is in the mood to do it and i would not be surprised if we see more tariffs from this white house. David for those of us who are not in washington, explain to us this kelly situation with the security clearance. We have dan coats coming out and saying the security situation is a mess. Inside thet an beltway sort of drama or is there something more fundamental . Craig there is a fundamental issue here. Staff secretary is a very important job. Every piece of paper that goes under President Trump ticky eyeballs passes through the hands of rob porter. He is a man with a history of Domestic Violence in his past. He did not have a security clearance yet but was seeing some of the nations most important secrets. There are some people in washington who say maybe that is not the best idea and that retary of state john kelly chief of staff john kelly should have done more about that. If he is in trouble from this and i think there is a chance he is, that is the story that will break through. That another person close to trump was not getting the job done. David always good to be with you down here in washington, greg gordon. Coming up, i sit down with Lloyd Blankfein, the ceo of Goldman Sachs. Shery first, President Trumps budget. We will be discussing it with democratic president of john yarmuth of Kentucky Democratic representative john yarmuth of kentucky. David this is Bloomberg Markets balance of power. I am david westin. Shery lets get a check on the first word news. Mark crumpton has more. Mark top intelligence officials told the Senate Intelligence committee that russia is intent on meddling in the upcoming u. S. Midterm elections, particularly through the use of cyberattacks. National intelligence director dan coats said that the threat to the integrity of the elections needs to be addressed. There should be no doubt that its pastrceives efforts as successful and views the 20 u. S. Midterm elections as a potential target for russian influence operations. That director coates added no Single Agency is in charge of dealing with potential russian meddling and that efforts to utilize cyberattacks will likely continue because they are considered low cost and low risk. Hackers hit the Winter Olympics in what appears to have been an attempt to embarrass its organizers. Cyberattack. Live Internet Networks at the opening ceremonies in south korea last friday. Whoever was behind the attack new usernames and passwords. Investigators said that we can that theussian weekend crash of a russian passenger plane may have been user error. The plane crash outside mustached plane crashed outside moscow 10 minutes after liftoff, killing all 71 people on board. President an council says managing the flow of migrants to europe will be a challenge face for many years to come. Speaking in vienna after meeting with chancellor sebastian kurz, he said he and the austrian leader had similar views on the issue of migration. He says all European Countries need to contribute to finding a solution. Global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. Shery President Trump delivered his budget to congress on monday. This, after lawmakers passed their own bipartisan twoyear budget agreement. It boosts caps for both defense and domestic spending. Entitlements would see a 1. 7 trillion cut over a decade. Joining us now is kentuckys democratic representative, john yarmouth. John yarmuth. Thank you so much for joining us. Give us your reaction to President Trumps Budget Proposal. Rep. Yarmuth my initial take away is that this is a confession document. The basically confess that representations they made about the tax bill that was passed last year are not going to come to pass. They are not going to reduce the deficit. They are not going to pay for themselves. And the growth that they projected yet last year when they were debating the bill is not going to come to pass. Creditthe minister she for being relatively honest with this budget but it physically they said would happen because of the tax cuts are not going to happen. It is also a confession that virtually everything the economy on the campaign trail was not true. He promised not to touch medicare and medicaid. There are very dramatic cuts in those proposed in this budget. He said he was going to eliminate the National Debt over eight years and this budget projects an additional 7 trillion in the debt. I give him credit for honesty, but it is not a pretty picture. Shery will democrats offer a alternative offer an alternative . Certainmuth to a extent, the Administration Budget does not mean much. As director moving he, it is more of a messaging document. It does tell us where their hearts are, but it does not mean much because we did pass spending limits for the next year and a half. To a certain extent, our own budget might be moot, but we will see what the democratic majority does in the house, if a budget, we will propose our own. Shery the Financial Markets have already noticed. How concerned are you that you could spook u. S. Debt buyers . Rep. Yarmuth that is a legitimate concern. People have noticed treasury rates going up pretty significant by a pretty significant amount over six months. Wheree getting close to you might make the interest on the debt the largest single ,lement of the National Budget which would crowd out very important expenditures that we need to make. This is a matter of concern. Shery where will spending cuts come from . Rep. Yarmuth i personally dont think that there is any theification for raising pentagons budget by 165 billion over the next two years, particularly when that have just begun the first ever audit of the pentagon and they have turned up billions of dollars they cant account for. I think that would be one place i would look. The things wee of have to do is figure out how to drive down the cost of health care. That is not necessarily by cutting 554 million out of medicare. It is by letting things like medicare negotiate for the price of prescription drugs. There are steps we can take to drive down Health Care Costs and we are going to have to do that because we spend almost twice as much as the next highest per capita expenditure in health care in the world. We have to get a handle on that. Shery something that will need andet done on immigration the dreamers, President Trump tweeting negotiations on daca have begun. He says wouldnt it be great if we could finally solve the daca puzzle. This could be our last chance. They will never be another opportunity. He is talking about the deadline when dr. Protections would run out. That has already been happening. More than 19,000 immigrants have lost protection since september. How much urgency is there, in congress . Rep. Yarmuth on the democratic side, there is a lot of urgency. We have been talking about this for a number of months. We said you are disrupting lives on a daily basis. The irony of this is that President Trump created the crisis because he reversed the obama policy and set a march 5 deadline. What he needs to do if he wants to be responsible is at least extend that deadline for another few months to make sure that congress has adequate time to act. Shery even if you get more time to act, have you seen any of the proposals out there that could get the votes needed in the senate and also in the house . Rep. Yarmuth that is two separate questions. There are some compromises like a live with. I was part of the gang of eight in the house that work for seven months on comprehensive Immigration Reform and we had a proposal that most of our democrats would have supported and it was certainly more conservative than i think we would like. There is room to negotiate. Whatever comes out of the senate, it is going to be interesting. If something comes out of the senate, it will have to be bipartisan because they need 60 votes. To bek paul ryan is going under enormous pressure to bring that or something close to it to the house floor. Shery you are advocating a comprehensive deal with more time to get a resolution on immigration, and set of a narrow deal that should get done by the march deadline. Rep. Yarmuth i would love to see a narrow deadline. Narrow is a matter of definition. If you have two elements in Border Security and daca, that is the narrowest we could expect. We could also have one that deals with diversity visas, maybe makes the right changes in the family reunification provision. We are much more sensitive to that because immigration should be about reuniting families and that dividing them. There is room for compromise. I worked on one in 2013, a bipartisan bill out of the senate in 2013. I am somewhat optimistic. Disruption wed are creating in these dreamers lives is really shameful. ,hery congressman yarmuth thank you very much. Ahead, we will hear from the House Majority leader Kevin Mccarthy. What he says about the boost to federal spending and the longterm applications of the budget deficit. David i caught up with House Majority leader Kevin Mccarthy at the Goldman Sachs business summit and i started asking about how concerned we should be about the ballooning federal deficit and its possible effect on Interest Rates. Rep. Mccarthy we should always be worried about Interest Rates but remember how low Interest Rates have been for quite some time. People are fearful of inflation because we have growth coming back. If we want to solve our debt, you cant solve it by cutting, you have to grow the economy. We have done that first part. What people should be fearful of is where is the money being spent . When Ronald Reagan was president , 75 of your budget, congress controlled. It was discretionary spending, things you know the government is for. World, that mandatory makes up 69 , it is automatic and congress does not have control over that, so we have to look at every at our entitlements if we want them to be there for future generations. 10,000 people a day for the next 10 years are qualified. Is better to do it when you have a growth economy, so there was going to be an opportunity. David anyone who studies this question comes out where you are , where we have to deal with entitlements. Has a same time, we just we just had a president ial election and neither candidate had anything done. ,s there a political will saying yes it is ok if i give something up . Rep. Mccarthy since republicans took control of the house, we have passed a balanced budget and we have dealt with entitlements every year. We are being very honest with the voters and we also protect and weey currently have are protecting it for future generations as well. The longer you wait, the fewer options you have. The other thing is to get the economy growing again. If you look at the january revenues, we had a surplus that month. This was a little different, so what is going to happen is this tax bill and that jobs act, more people are working, more incomes are growing. The bargaining a raise every month because of the withholding. There is an opportunity to deal with entitlement when you are in a growth stage growth state. David talk about infrastructure. How important is that too Small Business owners . Is that to Small Business owners . Is that realistic in this climate . Rep. Mccarthy if you look at what the white house put out, published by this partnership, we need to Work Together. States have done these pilot programs that have been very successful. But we should look at is what america should look like in the years 15 to 100 years. They can sell some of their infrastructure and it goes back on the tax roll. It is being managed more efficiently and you get enhancements to reinvest that in new infrastructure that you need. Looking at it in a 21stcentury model would help. David my interview with House Majority leader Kevin Mccarthy. I will be speaking with michigan Governor Rick Snyder. One of the Biggest Challenges facing the michigan economy . That is next. Letter, an exclusive interview with Goldman Sachs ceo Lloyd Blankfein. 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. Sherry this is Bloomberg Markets balance of power. We now see u. S. Stocks moving positive with the nasdaq leading the way. Onlyasdaq, in fact, the to date,the green year gaining 1 . Consumer staples and financials are leading the gains on the s p 500 and the dow. The s p 500 coming of