April and it is on the downside right now. Abigail the dow was down about 2030 points, but we can look at how it is doing for the week on friday. We are doing a bit at her. Better. As i mentioned, it is the end of the week and i do not want this to distract from the broader, better performance we have done. Take a look over here at the russell 2000 index. We saw some record highs earlier in the week in anticipation of the tax reform, because these small Domestic Companies will be the ones that would benefit from lower taxes. We can talk about stocks. Lets touch on the 10 year yield, just to be euro. Thorough. Moste unchanged for the part. Yields have been slightly higher, and we are up a bit from when. 17 we saw a week ago the geopolitical risk was flaring up. Mentionedcarlet you amazon in your open. Lets touch on that. They are one of the best performers in the nasdaq year to date, their unbroken year 20 year streak of doubledigit gains has nowhere but up to go. And google is benefiting from a they went briefly to an intraday high. Scarlet those tech names continue unabated, and we see the nasdaq just off its record high at the moment. Abigail . Abigail President Trump took a almost 100 days ago and was hoping to go to 4 economic growth. But it is said that trumps numbers are wrong. It could be, if you are wondering about cuts in social benefits, which would be required to fund almost 100 dayo the type of program he has put forward. Taxmber, it is not only a thing, it is also a military spending thing, because we were going through a moment in the last decade where the share of wasgoing into our military at the lowest level since 1940. We cannot maintain the president s presence that we are trying to maintain militarily unless we cut things. So the budget outlook is not only a tax question, but also a military question. Has said both. His arithmetic is the problem. We are going to get either tremendous reductions in some areas of the economy, for you are going to go to a large budget deficit. For you are going to go to a large budget deficit. But we are now showing a significant spike in the budget deficit. Ofhink that is the beginning the move that he will take. If it is critical to growth to have tax cuts but not increased deficit, is it only from entitlements that you will get the money you know about tax expenditures, because what i think people are wondering about is there are all sorts of inductions, loopholes, and exceptions, special interest things we could get out of the tax code and get real reduction rates, and broaden the base, and still not increased the deficit. Is that a good plan . This was a commission that tosident obama put together address this particular problem. They did precisely what you are suggesting. They lined up all the tax benefits,es and the and brought the deficit down to normal. It had bipartisan support for senatet the house and certainly passed it. To listendid not want to the commission that he put together. That was the worst mistake i think he made. , and looking forward to know what we have done is used up a lot of the goodies that were available to now we do not, so have the ability to do the same thing, but we should be doing Something Like that. While greenspan is wary of trumps arithmetic, he did have kind words for the efforts to boost the economy. He has to be doing something or you would be doing something. The reason why stock prices have has indicated what he wants to cut back on supervision regulation, which is to the holebitor outlook, in many respects whole outlook in many respects. [indiscernible] the chairman of finance for the house. He came out with a bill that thed marginally eliminate whole regulatory structure. Doddfrank . Doddfrank. I had been arguing for years that doddfrank was a disaster, and this is one thing i got right. Let abigail that was former fed chairman Alan Greenspan speaking with us in washington. Scarlet i have to say, it is realshing to see him use words. He said it was disappointing to see that we had used up the goodies and that doddfrank was a disaster. He is entered using words like a rational to describe something that he could not drive any value from that. Abigail interesting point, and this is the first time i have someone talk about the removal of doddfrank and the reason for the trump rally. Doddfrank. Something else that stood out is how we are going to pay for the potential tax cut and tying in the military . Scarlet this is something that has come up time and time again, because President Trump has made a big, big deal about how much more money he wanted to put into the military. In the first 100 days, he went on the air flight carriers and was able to talk about how he carriers ond more our oceans and beef up spending there. Abigail but how do you pay for that . This will be a big challenge for the administration. Lets check on the first world news. Signed annt trump executive order today to pay the way for new offshore oil and gas drilling, potentially adding thousands of jobs. Pres. Trump you have not seen anything like this. It is a false standard, 100 days, but i do not think anyone has done what we can do in 100 days. President trump says his executive order will bring wealth to the united states. Congress has given it all for one more week to agree on a spending measure to fund the government through september. Three 38230 houseboat house vote would shutdown,government extending the deadline by one more week. And focusing military assaults on International Coalition and Afghan Security forces. A taliban spokesman announced the launch of the offensive in a statement that boasted of taliban control over half of the country. The taliban dove this years offensive operation montessori monsuri. Pope francis is in egypt, where he was received by the Prime Minister and top christian clerics. He is presenting a united christianmuslim front come up following recent violence. He will also meet with the president , who will participate in an International Peace conference. Bloomberg. Abigail, scarlet . Scarlet thank you, mark. Coming up, we heard how Alan Greenspan told the called the doddfrank regulation a disaster. We are live in boston with the top security cop in massachusetts, and the president at an nrag in georgia event. You can catch is full remarks on the bloomberg. Pres. Trump four months, i was hearing that. Abigail this is bloomberg i am abigail doolittle. Scarlet and i am scarlet fu. And during trumps first 100 this plan was touted to overhaul doddfrank. This proposal targets that the judiciary role, which would allow clients to acting within their targets best interest. We have the top securities cop in massachusetts, home to one of the worlds most big it Asset Managers biggest Asset Managers. A have called this bill direct threat to Important Police powers that allow the states to protect their citizens against fraud and abuse, and tot will enable the states become havens for fraud. How does the bill diminish securities regulation power at the state level. Isthe most important feature basically, at the same time as reducing the securities and authority, it says the states must ordinate their enforcement activities with the securities and exchange commission. So it subordinates the state and state laws to the securities and exchange commission. The history is very clear. The states have been effective in protecting our citizens when we see fraud. Assisted the sec in identifying these problems. So this is a wish list. They do not like having the cop on the beat at the state level, whether it is massachusetts or alabama or any other state. They do not want anybody, truth be told. And another part of the bill that as bad is the bad act provision, which would prevent it prevent certain institutional entities from automatically taking advantage of certain status. This would be effectively done away with. So the protection average investors would have from bad actors would be done away with, and with diminished ability of the states to collect fees or fines where they find inappropriate activity. This is all about taking care of the people in securities industry, and putting individuals and investors at risk. Thank you so much for joining us. I spent more than 10 years on in mytreet, and experience, it made all the sense in the world to protect our clients. But one part was around the world of 401 k s, and that investments in fighters were investments bankers were excited because they would not be able to have that relationship. You think that is a relationship with that 5. 5 trillion market . Absolutely. This almost if i is reality. Reality is when there is money on the table and the market to be serviced, it will be serviced. The amazing thing about this role, it is such a simple, fast simple thing. You have to put your client first. And the fact that so many people are ready to adapt and go forward does not mean it was a huge burden. It means the industry does not want something that is going to tell customers how much something should cost. Is for nonsophisticated or unsophisticated investors. This is very important that this be preserved. Scarlet you have been waging this public battle on fiduciary role. Have you been able to speak with the man who introduced it or his office at any point . No. They are not interested in speaking. Most of the people lined up at the interview yesterday were industry people. Toy did permit Maxine Waters conduct hearing today, which shows some of the advocates were able to speak at, but they are not interested. We have had this battle before. I think this is an important point to make. I have spoken to a number of republicans to our securities administrators and our secure aboutt are concerned this bill, because this means they cannot protect themselves. For keppel, the secretary of state in mississippi, he is concerned about the bill. Other administrators were not positive at all. They are concerned about the bill. This is a gift to the industry at the expense of investors, nothing less. Abigail i want to bring up something we were told, that the root director Richard Cordray should be fired because what happened at wells fargo. There are two major Consumer Protection laws on the books. We would have an agency that is totally devoted to in enforcing the law. A cop on the beat. Was basicargo, it fraud that has been around since the dog don of man. Scarlet now, you know something about pursuing fraudulent activity. Does he have a point about Richard Cordray not doing his job when he goes to wells fargo . I have read about this extensively. It was a deliberate fraud on the part of individuals who created false accounts. Have spoken with people who were investors at wells fargo. Was had no idea that this happening. When you have an entity going out of their way to do fraud on a massive scale, you cannot expect immediately to hear about it. I findly reinforces interesting, you talk about the cop on the beat. We are the cop on the beat. People can call people like me and others in the states and get reaction promptly. To diminish our authority to the benefit of the industry, i think that is inconsistent with the attitude that he is suggesting. Abigail very interesting stuff. Have a great weekend. Thank you for joining us. Ofing up next, one washingtons most watched investors discusses the factors describing credit markets, and his dots on investing. This is bloomberg his thoughts on investing. This is scarlet this is bloomberg markets, i am scarlet fu. Bigaill and im aa doolittle. Speaking about where a Credit Investor could hernandez returns it without more returnsd earn without a limited downside three you have to buy better each market in the hope that you can get them at a decent yield. But you cant. It is very tough. If you cannot get both, and it is hard, which do you emphasize . Better credits are good yield . More important to emphasize the better credits. And you sacrifice return. Exactly. I wrote a memo about 15 years ago, in which i said the market is what it is, the environment. You can invest in it, you can invest in it, but you cannot say you want a different environment, because that is not going to happen. We are stuck with this one, it is a low return world, and an investor functions in a low return world with some challenges. Particularly after listening to your colleagues yesterday, when they use the word harvest on a number of occasions. Oaktree totime for harvest. Who is on the other side of those trades . Who would bely, dumb enough to take market risk and credit right now . In credit right now . Talk about market risk. We sold an asset this week, as you know. Strategic. Was they do not care about the market price of that asset in three years. Strategic buyers have been very good buyers lately. That is one example. But some people have lower cost of capital than others. In america, we have a high cost of capital, pension funds, you could make a percent. That is their hurdle. I was talking with somebody yesterday who was approached by a Foreign Pension Fund with a 4 cost of capital. For them, some abuse investments are more attractive. Going back to the baseball analogy, as much as i know you do not like it, we are in the eighth inning. And there is still a full inning left for this game to play out in regulation. What is going to drive the market . What factors underpin higher prices for credit assets right now . I would say primarily, the quest for returns. It isthe point is not fundamentals. There is no fundamental argument for higher credit valuations. Valuations are assets in general. Assets are in high valuation territory. Abigail that was the cochairman howard marks with an exclusive interview with Erik Schatzker this morning. Scarlet it is time for the business flash, taking a big look at some of the stories in the news right now. This is cap into your battle of a culmination to complete the merger of the two biggest u. S. Health insurers. According washington held up a Lower Court Ruling by a 21 vote issued today. And ticker clb are shares were placed at 15 each, waving 225 Million Dollars that will go towards working capital, and other corporate purposes. They are backed by intel, which will retain a 19 stake in the company. Airbnb is looking for professionals starting on monday. Searchers can use a new tool to post or find apartments. Abigail and commodities coming to a close, we will take a look at oil and energy. This is bloomberg. Scarlet we have Commodity Markets closing in new york, celebs get started with sugar, which is higher today, but down for a 12th straight week, the longest losing streak since data on the contract began in 1961. Been agers have because of market surplus. Meantime, oil prices gaining. They give up some of their earlier advance after President Trump signed an order to expand offshore drilling. We will have more on that in just a moment. Worse, lets look at earnings in the Energy Sector first, lets look at earnings in the Energy Sector. Earnings are driving the Energy Sector higher, as we will be looking at with exxon and chevron. If you take a look at my terminal, you will see that energy is one of the few greens on the screen. That is a good relief there, besides from some overall broad losses. Lets take a look at what is driving that, and that is chevron and exxon. This is exxons best a this month. Back 6 million shares in the First Quarter, which is certainly sharding are shares higher. Chevron is cutting their way to 6 million in shares in the First Quarter, which is certainly moving their shares higher. Chevron is cutting their way to the top as well. On the monthly chart, because we are at the end of the month, we can put this into perspective. Oil is on its fourth losing its fourth monthly losing streak, its longest since february 2016. There are a few price dynamics when it comes to oil. You have opec trying to cut u. S. Toduction opec trying cut, u. S. Production higher than normal, all of this when it comes to oil. Scarlet great stuff on oil. Lets get more on President Trumps order to expand offshore drilling. He signed that memo at an event at the white house earlier today, and they are also reconsidering safety rules that were implemented after the deepwater horizon disaster. Much oil does he want to drill for . According to the white house, it is about 90 billion barrels of oil, but that includes the gulf of mexico areas that are already being drilled on. At this, youre talking at something more about 40 billion barrels, which is still a substantial amount. Oil production in the gulf of mexico is booming. The yellow bars indicating gulf production, the others indicating alaska oil production. Is there something that needed to be done through an executive , because there was a big ceremonial signing of each action he gets ready to take . This is a president who loves tosign orders that allow him review things. It is asking for a review, not setting in the thing anything in motion right away. This would take a couple of your succumbed to fruition, and if you are expanding drilling, not all of those states will welcome oil rigs off their beaches. On the other hand abigail on the other hand, who hates this . X mental groups really hate it. They are the reason obama decided against this twice. You are talking about the coast of california, obviously, and some of the southeastern united states, those are beaches that people like to go to on vacation. Do not want drillers or tankers going back and forth. And this is early on in the process, looking to review the regulations that are in place. In the state stop this if they want to . There are some rights under the coastal bill Management Act heat es them some lead way, but i think some places will go first. California will be a hard sell, and they said they will listen to say. Localities have in places like georgia, the carolinas, they were very supportive of exploring for oil, so it will see if that is still we will see if that is still the case. Trump, part oft his ration