programs generally. they are supposed the educational programs. they help kids who do not get fat at home so they do better in school. there is no evidence they are actually doing that. actually helping results and doing better at school. when we took your money from you, the way we justified it was these programs would help kids do better at school and to better at jobs. we cannot prove that is happening. >> we are saying no afterschool programs out there are doing their job. >> i don't believe we cut all the funding of those things. >> you were talking about the steelworker in ohio and pennsylvania and so on. those workers may have an elderly mother that depend on the meals on wheels program who .ay have kids you described this as a hard power budget. >> i think it is probably one of the most compassionate things we .an do you are only focusing on half the equation. you are focusing on recipients of the money and we are trying to focus on recipients and those who give us money in the first place. it is compassionate to go to them and say we will not ask you for the hard earned money anymore, a single mom of two in detroit, give us your money. we will not do that anymore unless we can guarantee -- let me finish -- unless we can guarantee to you that money will be used in a proper function. that is about as compassionate as you can get. >> i have a question on the border wall. it, the budget asked for $4.1 billion. 1.5 for this year and 2.6 for the following. all about whether or not mexico will pay for it or reimburse at the president pledged. where is the money coming from? >> you number is correct. it is 1.5 for 2017. 2.6 for 2018. does that build the whole wall? it does not but it gets us a start and you see the wall being go up this year and we increased money in 2018 but the law will take longer than that many years to build. as for the source of funds, that is for the president and the state department, we are the guys who take the money and allocate and it is up to someone else to figure out where that comes from. ,> to figure out reimbursements some of that money now, is that part of the president's promise and are there other elements of the budget intended to carry out the punishment the president talks about? familiar with that particular item p also homeland, they are increases that deal with this sort of topic. increased detention facilities, a significant increase because the president said he wants to stop the catch and release program and has signed an executive order to do that. we have increased the amount of money for attention in the country illegally. i will give you a follow-up because i cannot answer your first question well. >> the cuts you are making to transportation, you said those would be paid for later with other appropriations but this would be balanced. you have been a fiscal hawk yourself. it sounds like a shell game where now it is a balance budget but you are not stopping to pay for other things because those will pay for the -- be paid for later. >> to clarify, it is not a balanced budget. there should be a deficit according to the congressional budget office next year. in order to spend more money on the president's. probably would come with the summer and may be early fall. we have to do in obamacare repeal first and tax reform second. that leaves infrastructure third. if are making an assumption i am not willing to make, an assumption that all the infrastructure we provide for later in the year will go to the deficit and i'm not willing to make that assumption. >> it provides robust funding for embassy security. does that mean there will be an increase considering all that the president and republicans -- levitt against president obama -- osedly cutting >> i will leave that to secretary tillerson. how he decides to allocate that, some embassies don't and some do, so he gets a flex ability to do that. the gentleman in the back gets a question. >> many countries around the engaged -- most of the aretries getting u.s. aid not with the u.s. supporting against the u.s. and they are not working with the u.s. how does president trump feel , [indiscernible] to spendon't have against those countries who are against the u.s.? >> what the president said on the campaign is he will spend less money overseas. this came up the other day, hard power versus soft power, there is a deliberate attempt to send a message to allies and friends and adversaries with other entries, shall we say, which is this is a hard power legit. changing course from a soft power budget to a hard power budget. it is a message our adversaries and alice should take. yes, ma'am. >> eliminating a lot of funding , just to follow-up later. >> a couple of different messages. about science and climate change. we will focus on core function. nationalist is for health, why? thank you. why? outside they do things of core functions. we recommend a couple of facilities, cough savings for that. person the business review of government, you are the ceo and you look at a spreadsheet and you say why can we do this if we can only do with three. part of the answer is focusing on efficiency and doing what we do better. regarding the question of climate change, the president was fairly straightforward. we consider that to be a waste of your money to do that. if specific tie to his campaign. >> you mentioned it is one of the programs that determines -- that has not been doing the job. what efforts are you using to make the statement? >> my understanding from having been in state government, i have been run several times today and this may not be the first time, my understanding is that is a state determination. developmentommunity block grant. some states choose to take the money and do meal -- meals on wheels. we look at this as $150 billion spent over four years without benefits to show for that type of taxpayer expenditure. that is why we have a reduction. forsean does this every day an hour and a half, have no idea. [laughter] i have been up since 4:00 a.m. this morning. the omb director briefing.t the press he was going over the budget outline the trump administration has released you what i thought was the most interesting part of his answers was there was a very deliberate attempt to send a message to allies and adversaries. >> he was blunt on that and it shows up when you look at a breakdown of data. and he said this is a change to a hard powered budget. >> he mentioned and infrastructure program for summer or early fall. thatrically deep cuts touched nearly every federal agency, that is what president trump is proposing in his budget blueprint. here with analysis is david westin. he will interview an exclusive guest with unique insight into this. david: we are joined by someone who knows washington like no one else. he serves as a congressman for california, chief of staff for president clinton, director of .he cia, and defense secretary thank you for joining us today. you have been the budget director and also the defense cia trying to enforce a budget. have you ever seen a budget that if it goes through in these terms would have this sort of found affect on agencies? >> the budget is pretty much a reflection of budgets we have seen over the last few years that don't go anywhere. they are usually revised in the senate and the bottom line is we're probably looking at a continuing resolution come october 1. bebudget that probably will represented by another continuing resolution. i don't see the budget having much life on capitol hill. >> explained to us the inter-workings of washington? why set something up if they don't expect it to become law? >> obviously the white house is on a tight field when it comes to the budget. they have taken entitlements off the table and they are not raising taxes. to go withot discretionary spending. if they will increase defense by $54 billion, increase other areas, you will have to do drastic cuts on the discretionary side here that is just a reality of the budget that they are dealing with, reflecting their priorities. the problem is we have not had a comprehensive budget in washington for probably the last 20 years, in which every area of the budget is addressed. both parties have been at war on the budget. republicans favor defense and don't want to do tax increases, the democrats don't want to touch entitlements, and the result has been gridlock on the budget. that is a reason we have a $20 trillion debt, because neither party has been willing to face the realities of the federal budget. >> we have republicans in the white house with both houses of congress, does that hold out any hope of there actually becoming a budget, or does the 60 vote requirement stop that? >> i think it will be very hard, based on deep cuts on programs, domestic side. many republicans like those programs. the ones that deal with rural areas, law enforcement, issues that affect people on a daily basis, the reality is the deep cuts are not going to be not just by democrats but republicans as well. i suspect the house may be able to pass some appropriations bills, but the reality is the senate will dramatically -- at the end, they will not be able to get it done in time so we are probably looking at a continuing resolution on october 1. >> you having been there and seen this, does that hamstring the president, his pursuing policies that he wants to pursue and that he campaigned on? >> it does it does. tois not going to be able get the budget proposals that had been recommended in his budget. revisions will have to be made and i believe in the end, he will probably get an increase on defense spending, some increase on homeland security. the other programs will not be as drastically cut as they are recommending. the deficit will go up rather than down. >> if you had your old job back, would you be arguing for the budget increase of this magnitude? is this required for the national defense? believe we ought to be providing some increase is just based on the world that we have the world weand have to be involved with. i do not like the defense spending that goes on a roller coaster ride. one year, $54 billion, the next sequester,result of and then it is dramatic the cut. i would rather see a defense cut -- defense budget that goes up gradually and where there is certainty as to where the budget is going, we right now do not overall budget is going over the next five years. because of uncertainty, i think it is difficult to plan defense spending in that kind of atmosphere. >> would you rather have the money coming would you rather have someone go to rex tillerson for foreign aid? remarkable cuts are proposed here in foreign aid. >> i believe like jim mattis does that if you will not provide foreign aid or a diplomatic effort in dealing with other countries, the bottom line is you have to buy more bullets. it does not make a lot of sense. if you want to deal with a complex world, you have got to deal with diplomacy, four aid, and military power. -- thaton the sincerity is all necessary. >> leaders have had a lot of hopes about tax reforms, for example. as he described the budget process, can you hold out any hope for them that they -- there will actually be changes in washington? or will it be more muddling through? >> right now, based on what i ie happening in washington, think a lot of this is unpredictable. if the president really wants to achieve the legislative approach -- proposals he is recommending, whether tax cuts or infrastructure spending or even the health care bill, he has got ande able to reach out develop the kind of consensus necessary to get legislation through. if you just rely on one side of the ledger, the republican side, with 50 votes that will give you trouble, almost with any bill you try and the senate will not accept a lot of this, i think is to find at now governing coalition that could make these things realistic. i don't see that happening now. i think the future for that reason is very unpredictable. >> so finally, putting your old hat on as chief of staff, one thing is to make sure all of your people are staying on message here time and effort is not being wasted this way and that way. how would you manage a boss on twitter all the time including accusing the former president of a transitionhen in phase, what do you do with that? is a major investigation in congress. how do you get things through congress with that going on? >> the president of the united states needs to have the trust of the american people in order to a college anything. if the president does not speak credibly,ruth and not the president will not be very effective doing with congress or the american people. this president has to get away , concentrate on the job of being president of the united states, focus on making sure that what he says is true and is backed up by the facts, because if he continues to operate this way over the last two months, i think we are in for a lot of trouble in the country in terms of the direction of the nation. >> thank you. coming to us today from monterey. back to you. scarlet: great conversation. next, on options insight, we will speak with one trader on history at -- his strategy for trading. this is bloomberg. ♪ julie: joining me for today's options inside is the equity strategist for macro risk and thought -- thankfully, has been patient. we will talk about european elections. we've talked about this before that u.s.re surprised options were not facing and more risk. ones, over one of the big the one that did not show a victory for a populist candlelit -- candidate. do you think that decreases the risk? >> i do not know if you can extrapolate the results to the french. they are still pricing in a significant decrease in volatility around the elections. whichooking at features , if you lookeurope at futures, basically the market this of where they think stock will be, you look at a quite elevated reading, compared to 13. one of these has to be wrong basically. we in the u.s. are not pricing and enough risk. >> is there a third option that even if we get a victory, is it forg to be a material risk u.s. markets? >> i think it would eat. if le pen wins, it is not like -- you do not instantaneously get exit. at the same time, a big step toward that and we will go back to 2012 when everyone was obsessed with european headlines. not,talking victory or leading up to elections, i think people will start to care and fund managers, as we get closer, will start looking at hedges again. >> let's look about the best way to do that. we talked about this, a similar aeme to about one month and half ago. the strategy you are proposing is different. walk me through what you are thinking. >> we are looking to basically by protections ahead of the event. selling the s&p, selling able to 37 plus at 234, 384.y may 2 37 plus we're getting a big discount because we do not think too many take -- ahead of the first round of voting. >> you are buying protection against the idea there would be a drop or increase in volatility surrounding the french election, financing with things returning to normal perhaps? >> we don't really see too much happening. >> ok. thank you for watching that. i know that is something you guys are keen on. the french election over in europe, macro risk advisors, back to you. >> thanks. we will keep an eye on the fallout and the positioning ahead of that. let's look at the s&p 500 index.tion technology what our producer has found is that tech stocks could drive the ratio of a ratio. the s&p 500 index versus the broader markets, tech shares are more expensive in the opposite when the line goes down. it goes back to 2001. the horizontal line is the average since then. it goes back a bit since 2013. they make a comeback but still have more to go. investors will probably be more willing to pay more. oliver: i used to think of tech stocks as these companies but so many are veteran cash cows like microsoft and apple. it makes me feel very old. scarlet: the market close is next. less than for ms. to go before the close. we are looking at a dip lower. a gift back from the yesterday's advance. this is bloomberg. ♪ >> we are moments away from the closing bell. what'd you miss? the post that rally that since the s&p within 1% of an all-time high is starting to fade. i'm scarlet fu. i'm joe weisenthal. we want to welcome you to our closing bell coverage every week day. a broad rally let's begin with our market minutes. back aequities give little bit of their gains or consolidate. the dow losing 18 points. pairing some of the losses at the end of the trading session, the nasdaq unchanged. >> not too much of a loss. meetings, still solidly higher. only group that finished in the red was financials. today they made a recovery. followed by tech. staples in discretionary, unchanged. utilities fall the most. we also had a stock that began .rading i'm talking about canada goose. shares up 26%. estimated pe of 45 and a half. it gives you a sense of how richly valued this is. snap losing 5%. i fell below $20. yesterday.t 24.48 the offering prices after the market closed today, any moment now. gen, morgan stanley downgraded their ratings saying they see few near-term catalysts. and we should mention as well canada goose ceo danny rice will be on bloomberg television at 4:45 p.m.. >> let's look at bonds. a lot of interesting stuff around the world. yesterday,able pretty big move. giving back a little bit of that. elsewhere look at new zealand. a big decline. there was some wheat data. a big buying of lots of bonds. everywhere you look they were yell -- lower yields. interestingly yields up in france. this is in the wake of the dutch election. optimism have expected but they are a little higher. >> let's take a look at the dollar. >> the dollar continuing to sink lower today. we are now at the lowest since november 11. this follows the fed dovish hike. pound ono look at the the intraday. the bank of england had its decision this morning. no change. one policy member did dissent. others have indicated they may not be far behind her. raise rates byl september 2018. joe: let's look at commodities again. the story yesterday, everything surging. oil basically doing nothing today that had gained couple percent. gold continuing its rally. more reflation. those are today's market minutes. let's icad deep dive into the bloomberg. you can find our charts using the function at the screen. i wanted to focus on valid till. investors are complacent. that is apparent in the blue line which has been sinking. it is the 60 day volatility. differentlowing industry sectors this year. look at the white line. it tracts a difference between the volatility for the ftse. it is a spread. what does that signal for how the prices moved? >> cyclicals have been a big part of the postelection rally. the idea there's going to be all of this stimulus. to see cyclical volatility pickup may be indicating doubts on that trade. we have been talking about those doubts for a wild. here is some good news. i'm looking at all of the different regional manufacturing services. this is what michael mcdonough put together. empire state, richmond fed. city fed. the iso and the white line which is national. in. strong data coming it is noisy. they are all going up and to the right. they jump around a little bit. you have to like this trend. things are looking pretty good on manufacturing. >> looks good. what'd you miss? the battle over president heating up.et is for more on the major roadblocks the budget may face let's bring in justin. thank you very much for joining us. historically what is the relationship between the fantasy budget the president puts out and the ultimate path of spending that gets legislated. are sayingy people this thing is dead on arrival. that is historically true. president obama proposed budgets and they wouldn't even vote on it. the most important thing to look at is some of the defense spending that he outlines. more than $50 billion in increases. those are areas where he might have some agreement with not only democrats on capitol hill but republicans as well. even if we don't see the historic cats to domestic programs that might be an area where his legislation gets through complex -- gets through congress. scarlet: how complex is this? lot money toa veteran affairs, transportation defense. how does that compare with previous budget blueprints? >> this is unique for most of their budgets. it is called a skinny budget. you don't see the president's plans for medicare, for tax return, which is a big initiative that he wants to undertake. it doesn't have economic assumptions. it doesn't say what the white house believes those will be. this is a factor that the president just got into office 50 days ago. this is a real pulmonary situation. -- preliminary situation. joe: let's talk about the politics of the budget. cutting pbs with the national thewment for the arts, meals on wheels program. these are not line items, these are grains of sand, but they are high-profile. they get a lot of attention. they get a lot of headlines. the administration seems to be going after them. out of the expect these to play politically? >> for donald trump is a budget document that is aimed as his core supporters who have said they wanted a stronger focus on security mother want to roll back the great society programs that democrats and champions. negotiations.ning a lot of the things you outlined wouldn't be political palatable -- politically palatable. it is more about the message that donald trump is focused on security more than anything else. alix: people calling this a campaign document more than anything else. reporting has shown, they went andugh previous speeches plugged in numbers that way. is this how it is usually done? >> the budget document wants to represent the political positions and what he wants to forward. hedid see in the obama years would give concessions to republicans in his budget on things like the cpi relative to social security. political posturing for lawmakers rather than his supporters who oppose that. these documents are largely political and they are intended as the film at of those campaign promises. thank you for your perspective. they want to bring you some headlines. is still speaking right now. you can see a live shot. a surreal exchange with one of the reporters where someone asked about the wiretapping claims the president has made and he read for seven minutes clips of numerous outlets that wiretapping may have occurred. joe: the headlines are coming across. be vindicatedwill on wiretap claims, he of course being trump. some senators came out and said there was no evidence that. the white house is an inclined to let this go. it will remain in the news for a while until there is a resolution on some side. we are going to be talking to goldman sachs head of economic research. what is most concerning about brazil's underlying fundamentals. this is bloomberg. ♪ mark crumpton. time for first word news. president trump will stay true to the pledges teammate on the campaign trail. mulvaney unveiled the blueprint of the budget today. as the president is going to keep promises the kept on the campaign trail. you will see no reference to social security, medicare, medicaid here or any of the mandatory programs. that is not what this budget is. this is the discretionary part of the budget. half of which is defense and they off of that government. mark: the current administration will release the full budget in may. the president and microsoft founder will meet monday in .ashington the bill and melinda gates foundation put out a statement today highlighting concerns about mr. trump's budget proposal saying it would make the world less prosperous and less safe. the foundation says it is troubled that it affects the poorest people in the u.s. and overseas. officials in southern france they a 16-year-old student opened fire at his high school today wounding two other students and the principal who try to intervene. the suspect was arrested. there were a total of 10 victims. three suffered from emotional shock. none of the injuries was considered life-threatening. the young man was armed with a rifle, several pistols and a small grenade. global news 20 for hours day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. news fromome breaking adobe systems reporting resorts -- results. $.94 with the analysts were looking for. revenue $1.58 billion, higher than anticipated. in terms of the outlook revenue will be 1.7 3 billion, higher than the consensus estimate of 1.7 one billion area earnings will top the consistent estimates, $.94 is what was forecast. 3.5% instems up by after-hours trading. brazilian royale maybe. strongest level in a long time but not all the data looks impressive. the gdp fell the most in a year. unemployment is a record level highs. here to talk about the fundamentals is alberto raymo's at goldman sachs. he joins us now. great to have you back on the show. so, brazila year or was mired in scandal. since then there has been less talk about that. a strong rally. what about the real economy? how is that doing? >> it is a work in progress. it has been a recession of epic proportions. one quarter shy of a three-year low. nothing lasts forever. this is about to end. we have emerging signs the business cycle is stabilizing. going forward, what's expected, positive growth after two years of contracting. look like?l that to the right on occasion? or is it something sustainable? >> we could have setbacks. there is uncertainty. we have enough in terms of activity in the household state/sector, expect to see growth positive but small. probably below 2%. >> but the depression is over. >> probably. we have some indicators that show we may see positive growth in the fourth -- first quarter. it is not going to be an easy recovery. the unemployment rate. scope tots plenty of grow more. because of the headwinds i mentioned we are not going to see major inflation. joe: it is close to strongest levels and multiple years. where should it go from here? is that also a headwind? slowlys now fairly moving. the business cycle to recover. improvement, it is possible it will continue to push. external i would not rule out the possibility it continues to appreciate even though that is not what it is. all together for us. the strengthening currency, the mediocre recovery. what does that mean going forward? >> it is baked into most asset prices. they are going to see positive growth. more inflation. lower rates. we hope the economy will do better. the administration will be able , so there is ass lot at stake. there is a hope that needs to materialize to validate the current prices. stay, -- there's more scope for those prices to continue to rally. scarlet: on the streets of brazil there is a lot of social unrest. people protesting by the thousands. does he have the room and support from the government to move forward with these reforms? >> so far it seems to be the case. the administration not particularly popular. but they can approve the key points that they have proposed. this is a difficult reform. it is never popular anywhere. it is surprising it -- it is not surprising it this response. it is natural that we see that social unrest. joe: alberto raymo's, at goldman sachs group you are sticking around with us. what could be a new manufacturing house that includes the u.s., mexico and canada. ♪ scarlet: forget the wall. . trying to create a manufacturing powerhouse. interview, peter navarro told bloomberg we have a tremendous opportunity with mexico in particular to use higher origin to develop a powerhouse where workers and manufacturers will benefit enormously. romos. with alberto do you think that is feasible? >> absolutely. it is a 22-year-old agreement. the major technological innovation was a fax machine. it has advanced quite a lot. e-commerce, oil and gas, telecommunications. there's plenty of scope to modernize and make it a win-win treaty for everyone. how long does it take to renegotiate? it is not the best interest of mexico to engage in protracted negotiations. it will take 1-2 years and you don't know the terms, that will undermine investment decisions. rollout it will require congressional approval. there is uncertainty that will take some time to bring to fruition. we have to find the optimal trade-off. not taking too long to achieve it. >> what navarro said was about changing the country of origin rules so that something in manufactured mexico was really manufactured there rather than bring parts from korea and china and put them in mexico. that plausible to read -- chains tolobal value have a more north america centric focus? >> it is possible. resource more of the inputs into that process within the nafta region. what is the cost of doing that? why some a reason come from europe and some come from other parts of asia. it is cheaper to do that. can you source than in the u.s.? of course you can. maybe you will pay higher prices. it is good for the manufacturers. for the workers it is bad for all of us. you are going to buy a more expensive automobile. within reasonable grounds, if you go to things into managed lot, and increase those a you will make the final product more expensive and the companies that produce them less competitive on a global scale. scarlet: we are tracking trade flows. mexico, the u.s. is the biggest trading partner. china is number 284 billion. canada number three. nafta is about u.s. and mexico. is there the trust between both sides to negotiate a win-win agreement or are the mexicans working from a defensive posture? >> it is going to be a work in progress. we have to focus on the economics behind that trend. there's a lot of benefits from that trend. there's a lot of two-way trade flows. the reason why the u.s. runs a trade deficit, the mexicans send us more stuff than we send them. they get the surplus. that is the nature of their trade. is there trust? we have to focus on economics and not about trust. we have to preserve the value that the trades generate. that is what we need to protect. joe: i want to look at a chart that would shock a lot of people. the best performing currencies since trump took office. far and away the peso is the best performing. the next best, not even half as good. is there further to run on the peso? >> it depends how trade negotiations go. before the election of president trump there was the perception that new legislation could enact aggressive trade actions that would hurt those trade flows. that did not come to pass after today. if that is the case, if that is part of this, -- joe: great stuff great to have you on. saudi energye minister. this is bloomberg. ♪ scarlet: "what'd you miss?" president trump welcomed the saudi crown prince. opportunity to speak with trump after being shunned by former president barack obama, who crafted a nuclear deal with iran. kathleen hays sat down with the saudi energy minister. in washington among the topics on the table, the iran ipo, oil prices, and saudi arabia relations. >> we have been i was over eight decades. that relationship is important for our countries and our people. these are two leading nations, not only economically but also in terms of geopolitics, security, defense, visitrterrorism, and the gives us a chance to refresh, renew, and revise that relationship and take it to a higher level, which has been achieved by a ne alignmentw on geopolitical security as well as economic. that has been strengthened even further by the great rapport and funding is created between president trump and his royal highness, and between the ministers and delegations on both sides as we establish channels of communication, cooperation, and driving issues that are important for our two countries. >> let's look at what the price of oil has been doing recently. sophia review -- saudi arabia led on price cuts. crude certainly rose. for wti, it was in the mid-50's. both contracts havecrude certai. for fallen. twi has been in the 40's. does saudi arabia have to take additional steps, or perhaps sign a new strategy? min. al-falih: objective is the fundamentals. saudi arabia is driven by bringing supply and demand into balance, encouraging investment flows, and making sure that global inventories, which are in a glut situation, are back to where they should be. that is where i have my eyes focused on. are note those factors ones that can be easily managed. there are too many variables at play here. i think the fundamentals have significantly improved over the last few months. isis will fluctuate up and down. there are other factors interplay like speculators and financial investors go long or short. at the looking fundamentals, i am quite satisfied we are in the right direction. also my colleagues from other producing nations have been cooperating with us quite nicely. i think we are satisfied that we are on track. daily or weekly fluctuations in price don't get my eye off the ball. >> is it true that inventory has not come down as much as saudi arabia expected? doctor for you and other oil producing nations to cut more? those inventories -- the data -- the transparency is not perfect. it takes time for inventories to correct. demand in the first quarter is not the highest. it has taken time for some of that data to show. we believe we are on the right track. sometime i made here, we will look at where we are. we willtime mid-year, look at where we are. this is a six-month program. we are committed to it. my colleagues from other countries are equally committed. i think late in the second quarter we will be looking at one needs to be done to ensure that those fundamental factors we are after are achieved and maintained. >> you are watching the fundamentals. isthe six month mark, it possible he would sit down with fellow oil producers and extend the cuts? min. al-falih: if it is needed, yes. >> what is the sign that it is needed? min. al-falih: if inventories are still above the five-year average, for example, if the markets are not confident in the outlook, if we don't see companies and investors feeling good about the health of the global oil industry. them that wel to will do what it takes to bring the industry back to a healthy situation. fromw big is a problem none opec producers -- non-opec producers? i don't think they have gotten fully on board with their cut quotas. min. al-falih: i don't think we should pass judgment in the first and second months. they are fully committed. some of these countries are trying to learn the process of controlling production, not having done it before. we are patiently working together. i believe in the sincerity of the effort. >> the whole world is excited about the iran ipo. i wanted to ask a couple questions about that. the tax rate of saudi aramco will be reduced ahead. can you give us an idea how much that will be? min. al-falih: the ipo process is a deliberate process. company is preparing financiallook at a position, any other aspect like any listed company. the other is from a shareholder perspective. the shareholder of course is the government of saudi arabia. it is also preparing itself for a listed saudi aramco. both processes are on track. happen in set to 2018. course, as some of these milestones are achieved, we will make those announcements. >> how about that listing? can we assume new york will be one of those that is listed? china?ondon? min. al-falih: it is premature. we have not done our evaluation yet. this was a very delicate multifaceted evaluation from very deliberate, and in due course you will know. specifically what do you look for? that seems like a tough decision. what are you seeking when you designed what to list? min. al-falih: we want to optimize the interest of the kingdom of saudi arabia. kathleen: saudi premier estimated the potential of this ipo at $2 trillion. what do you make of that? what do you think it is worth? min. al-falih: the markets will ultimately determine what the real value is of saudi aramco. i can tell you it is a great company. freight -- great company, great resources that many investors would benefit by. scarlet: that was saudi energy minister khalid al-falih. health care bill passes another hurdle as president trump says he is open to negotiation on the plan. for more let's welcome michael .owling, ceo thank you very much for coming in. from your perspective, does the ahca solve the problems of the aca? >> absolutely not. they have to take it very carefully. they are working to repeal or fix something very quickly. one of the things they are realizing is that health care is extraordinarily complex. you touch one part of it, it affects multiple other parts. you can't deal with anyone part in isolation. they are pushing the conclusion. -- they are rushing to a conclusion. they need to make sure they are not making people worse off than what currently exists. what currently exists needs modification, but they are so determined politically to get rid of something rather than talking about replacing it with something that makes sense. scarlet: what is the biggest modification that should be made? michael: with exchanges under the aca, six operations of them, fix subsidies, and don't get rid of the individual mandate for healthy people to buy insurance. if they don't, there is no one to compensate for those that are very sick and old. take parts of the program that needs to be enhanced, but more importantly, don't do something. what they plan to do with medicaid can be very unbelievably dangerous. and it has a perception -- medicaid has a negative perception, but it does phenomenal things. it covers millions of people. if you put a cap on medicaid and give states total freedom, you will go back to what you had 15 and 20 years ago when states did not provide coverage at all. before the aca, many states did not provide coverage. you will revert to that, so you are moving backwards forwards. you have to be careful what you do to mitigate. -- to medicaid. we should look at the regulatory -- if there are 100 regulations, how many of them do we really need? you can give more freedom to be flexible. that i would completely endorsed. we are inundated with a plethora that everyons business complaints about. health care is a big business. if they take it a little bit easy and make that every business complaints about. health care is a big business. sure there won't be another 20 million people without insurance. ask yourself the question, know what do you do? joe: quickly because we are running out of time, your lay of the landscape -- do you think this bill or something close to it will ultimately pass? michael: i think it will have a very difficult time in the senate. i hope something like this is not passed. if they do not pass something as good as it should be, they will be back a year from now trying to fix it. joe: great perspective. scarlet: coming up next, canada goose ceo joins us from toronto. he weighs in on the company's ipo. this is bloomberg. ♪ scarlet: this is bloomberg television. we want to welcome our viewers from bloomberg television canada. shares of candidate goose surging -- canada goose surging after the company went public. david scanlon is standing by with canada goose's ceo, dani reiss. david: thanks so much. dani, thanks for joining us. a terrific day for your ipo, surging 30%. that comes with a pretty high valuation compared to some of your peers. do you feel the need to fill those high expectations? dani: first of all things for having us. years as a consumer company -- it is a monumental day. market has responded well and investors are excited about our story. we are excited about it too. we are looking to build a long-term brand and company. that is the way we have approached it for years. we continue to do that. we will continue to do our thing. david: one of the reasons for the interest in your company has been the steady growth in revenue, up about 38% over the last couple years. should investors expect that pace to continue? dani: there has been a lot of opportunity for us to grow in markets all over the world, markets we are in and aren't already in. we believe that we continue to grow. part of your size is a global expansion, two thirds from north america. what markets beyond north america look most enticing? dani: we are well recognized in 36 countries. the u.s. is a big market for us. europe, we have lots of runway . where we started building the brand was in europe from a consumer point of view. china is a huge opportunity for us we are excited about. david: you are looking at a push into retail. you have a store in toronto and new york. . you're looking to get more in 2018. where should we expect a canada goose store? performing well. we are excited about them. it is part of our strategy. the bestpen stores in and biggest and most vibrant cities in the world, north america and europe. maybe paris? -- david: we have not announced when they are opening next, but certainly those types of markets where our customers are and where our fans live. david: you are making this push at a time largely when retailers are under siege. way?re you going that dani: consumer extension is important to us as a direct relationship to our customers, especially as we grow our business. our wholesale channel is also to us. great relationships with our wholesale partners. e-commerce, it is important to have stores that forgathering places, people to learn about our brand and see the full product assortment. our experience has been really great. we have done really well with them. we are planning to open a few stores and lead with e-commerce, which has been working for us so far. david: you are proud of your canadian roots. at the same time, u.s. market very important for you. you have the u.s. government thinking about a border tax. have you thought about some manufacturing in the u.s. to get around that? dani: we are faced in canada and are focused on continuing to do that. we had a great relationship with the united states. we -- i think we are very well positioned for whatever happens. we believe politics to the politicians. we believe we are well positioned. we will continue to follow it, like any other company will. david: thank you so much for your time. scarlet, back to you. scarlet: david scanlon with the ceo of canada goose. from new york, this is bloomberg. ♪ scarlet: "what'd you miss?" the ranking democrat on the house appropriations committee says she can't find a single thing in trump budget that she can work with. she says the president is cutting too much. >> if he is going to continue to shift the burden of those that want to go to work, to take care of their children, who want a good job, who want to do something about our health crisis in this country, we can work with him. . can't find anything right now when weeks it down with republicans and trying to work on the budget, try to put together an appropriations bill, i hope there will be a meeting of the minds and we can work in a bipartisan way to get these bills done. scarlet: you have been in congress three decades now. en, people reached across the aisle to work together. do you see any concerted effort to start that process and? -- process again? rep. lowey: i used to say there were democrats, republicans, and appropriators. we would write a bill that would make sense for the hard-working families that are depending on federal health in the budget. if the republicans are willing to work with us, and if we are willing to do something about the national institutes of health -- increase those dollars, afterschool programs, job training -- there are many programs where we can work together. if they are going to salute and just follow the president, who was committed -- he clenched to make america great again -- you don't make america great again with a budget. this is a broken promise. we will see what happens next. scarlet: on what issues are your constituents most engaged, do you get the most phone calls and letters on? rep. lowey: right now they are very worried about health care. we know that with the affordable care act, we could have worked together, and we can still work together to make it better. this proposal of the republicans, and i guess you call it the paul ryan plan, or whoever wants to take credit for it -- does not work. i need with constituents all the time. with a round table constituents for hospitals. if they cut medicaid in new york, these people are not going to die on the spot, they are going to get health care from the hospitals. tremendously are concerned about the impact of cutting medicaid in new york. i guess that would happen around the country. health care is the key issue worrying about. it will seriously affect the elderly. and 65 the ages of 60 before people are on medicare, you're going to see major cuts and real concern among all of our constituents. i happen to believe in medicare for all. 65 peoplethose 60 to on medicare, and keep lowering it so that it would make sense. this proposal to replace the affordable care act is absolutely nonsensical for most people in this country. scarlet: that was a portion of my conversation with congressman lowey earlier today. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪ joe: don't miss this tomorrow -- g-20 finance minister starting a tuesday meeting in germany tomorrow. scarlet: we have economic data, including february industrial production at 9:15 and university of michigan sentiment data at 10:00 a.m. joe: tomorrow afternoon at 1:20 p.m., president trump hosting angela merkel at white house. today the leaders of the two countries. scarlet: tiffany announcing fourth-quarter earnings at 6:30 a.m. eastern time. joe: that is all for "what'd you miss?" thanks for watching. >> you are watching "bloomberg technology." let's start with a check of the news. the white house is not backing down from accusations that president obama wiretapped trump tower. the press secretary red clips from pundits we say it may have occurred. sean spicer says he believes the president's claims will leave indicated. boeing's senior vice president will be deputy secretary of defense. he previously served as vp and general manager of the missile defense systems of blowing. the white house budget committee voted to advance the republican health care bill. 19-17. the vote was president trump and bill gates will meet monday in washington. that is according to the white house press secretary. the bill and melinda gates foundation put out a statement today highlighting concerns they have about the president's budget proposal. says north korea has nothing to fear from the u.s. or its allies. he is calling for a new approach

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