mark: we're going to take you from washington to berlin the next hour. u.s. stocks having their worst points.he dow down 200 microsoft, amazon among the worst performers. potential for follow from president trump's immigration policy. immigrationing the -- companies work to move quickly to denounce the order. facts speaking up against the ban. saying it is not a policy the bank supports. a latest with a look at the markets. major averages were

down by more than 1%. s&p down.d but one point, the biggest selloff since october 11. some having to do it the travel ban and some with the selloff and commodities as well. if you look at the s&p 500, energy shares are faring the worst as we see a drop in oil prices. the commodity less up. groupsthe 10 industry broadly are down. i wanted to dig into transportation for moment. .he dow jones average is down you heard david talking about the airlines. there was a delta outage effecting flights over the weekend.

delta not down as much as american. american says it will refund customers who are set to fly to the u.s. and are no longer able to do so because of the travel ban. also, as an outcome at least for now, particularly on immigration iraqi, it is- from to ban u.s. operating. from what is going on i want to look at these dollars as well. rotation that is viewed as more stable. here's the dollar over a longer

term. there is a trend line we are looking at. postelection day we saw mostly a rebound. the so-called trump trades has been coming back in and little bit and will continue to watch -- we will continue to watch for future trends. vonnie: thank you for that. mark: president trump defends the immigration than by blaming it on protesters and a computer outage. he signed an executive action that would not out to regulations for every one regulation that is adopted. event,his weekend's

there was some silence from senators over the weekend. has that started to change? no. republicans have been and thengly silent response in supporting trump's orders has been tepid at best. a leadership member told me there is not much excitement or political appetite for not only mr. comes policies, but also the communication and messaging tragedy he has used in terms of executing these plants. they're concerned that this political capital will cost republicans in the republican majority. it does appear there is a little bit of panic in the gop with all of these executive orders taking place. can the gop stop the

president from implementing these orders? piecemeal whata is that of approach they would be able to slow lock some of the legislation needed in tangent with the orders. on the issue of the one regarding immigration and stopping temporarily certain immigrants from coming into the u.s., they are not able to do much. i contend that democrats later today will all gather on the supreme court in order to oppose president trump's orders. clearlyhe imaging sending a message to this administration, but president trump also sending a message back that he is not backing down from this. he is consistently trying to make the case that this is a top-down approach and he will be

in charge and fulfilling many of the campaign promises that he ran on. -- : what can we expect from the president? sense do we have of who he might name tomorrow? >> there have been three judges that have been talked about on a short list. is that we are thinking it is one of these from inside the white house. that is really about all we know at this point.

then, a prime time announcement which is kind of unusual for a supreme court pick. the focus on this travel ban the white house is trying to change the subject a little bit. deployment of steve hill -- democrat and he was critical of this. ofwas critical not only steve bannon, but also who he is replacing. joins other republicans including john mccain that has raised concerns about president trump's relationship with the u.s. intelligence community. i can tell you later today the

mobil rex of exxon tillerson is expected to be confirmed. he's expected to despite democratic opposition. again, despite the democratic opposition is not there for them to block. as president trump continues to use clinical capital on --cutive orders, that post puts a wrench and their own political agendas. executivee from action, what came of the meeting he sort of mocked he was schumer, saying crying.

the other thing was the president just kind of brought up dodd-frank. he said all of these people here know how hard it is to get money when needed and we are going to take care of that. i think the first time he has commented since being it signals this is on his mind and something maybe coming in the next few days. vonnie: thank you. the seven from our newsroom. >> syria is warning the safe stones for civilians has proposed of creating says the

idea would violate its national sovereignty. the idea of safe zones was ruled out by president obama. it is now being called one of the worst terrorist attacks in canada. a gunman opened fire at a mosque in quebec, killing six people. to suspects have been arrested. prime minister justin trudeau called it a terrorist attack on muslims. president trump will announce his pick for the supreme court vacancy tomorrow night. there has been an opening on the court since last february when justice antonin scalia died.

vonnie: thank you for that. coming up, how are the biggest u.s. banks reacting to u.s. travel restrictions? we will tie the latest about which wall street ceos are denouncing the policy. this is bloomberg.

vonnie: this is bloomberg markets. , tax lloyd blankfein has broken

with trumps attempts to crack down on some immigration. allent a voice message to saying it is not the policy supported by the banks. many ceos and taken is action. they want their employees to know if they want to travel to other countries and had u.s. passports, they're still welcome to work there. >> yes, it's true. the notable thing about lloyd blankfein's voicemail was sort of how directly he said he and the firm, sex did not support the policy. as i was reading the news over the weekend and saw the memos , it was prettyut noticeable that many of them said they were in favor of

immigration and the but they did not take on the trump administration directly or comment on the policy directly and lloyds clearlyl said this very said this is a policy we do not support. weekend, there was a memorandum from silicon valley executives. with goldman specifically wife is important? >> it is a good question. i'm not privy to lloyds thinking when he did this. one thing with the tech ceos they have many employees who are effective. i think in googles case a couple of them were caught at the airport so they were driven to respond quicker than wall street. in the last two years, wall

street has been competing very closely with technology and talents ands over so one aspect of this is positioning yourself in his this is not something we will stand for. vonnie: what other executives are talking about this. >> jpmorgan's operating committee put -- they said they are in support of defending the country and safety they thought immigration was important. jamie dimon is one of the people on the operating committee. stanleyrgo and morgan

had memos out the said they are looking at how it effects the employees. citigroup and bank of america to comment declined entirely and schwartzman as well. mark: is the audience geared towards the employees or public? question. i think probably both. i think with most corporate memos they are geared toward the public and public consumption. think it it didn't effect employees the ceos wouldn't feel the need to take on the administration.

from has been -- shown he is willing to take on companies he does not agree with or don't agree with him. i don't think the decision is made lightly to go out against a policy of his. any in have there been support of the policy? >> i don't think -- thank you. so head, what is going on to the -- in today's deals report. this is bloomberg.

vonnie: this is bloomberg markets.

david: time for the deals report. are analyzing we active shareholders. of shareholder activism team. he has represented fiesta restaurant group, fred pharmacy. take it away. we are in the proxy season where a lot of the activist try to pressure companies. season isy proxy important and what you do. at95% of corporate america -- that is really the

time activists put the most pressure on companies. year whentime of the the fireworks start to go off because most public companies have something which is called an event notice. at some point -one is 20 days prior to the meeting. >> is your view that too many are settling with that -- with activists. innovate our friend of the process or don't want to spend the money. my correct in saying that the companies should find more were not settle so quickly? >> absolutely. i'm a staunch opponent of quick

settlements. there are a couple of reasons. i give you three reasons. one, there are a lot of investors who are against quick settlements of public companies because they want to be heard. withwant to be consulted before a company strikes a deal toh an activists and agrees a sale of the company. they are a get -- against private settlement. second, a lot of settlements don't secure a lasting peace. there are lot of settlements that have a proxy fight in year two. >> even with the stencil

agreement or the activist agrees they will skip the next year that still results in a fight on the road? oftentimes to proxy seasons and you into into a settlement with an activists and often times what i find is the legacy director were both going into the boardroom convinced and they find out there is no agreement on major issues and the threat of a proxy contest start pretty quickly. >> the board members put on the board by activists, they have the same view as the traditional view? or are they more --gressive in your mind aggressive in your mind? >> it depends. there are two categories of

activist directives. when they come on the board, they tend to be fairly aggressive in pursuing short-term liquidity and then there are independent directors activistsby directors. sometimes they are truly independent. sometimes they are independent it is not always easy to tell who is who. >> i know a lot of cases you are working on is with market payout. over the last two years, they have gone to the 700 million mark. why's that? >> it is a good question. a publics easier for company to have the courage of conviction when they know they will not be covered by bloomberg to the but rather the houston chronicle.

the fact you are not in the national media makes it easier to agree to fight a proxy contest. number two, quite frankly companies are like private enterprises. cannot relates focused on shareholder bodies. fore is more opportunity activism. david: thank you very much. the head of shareholder activism. paring ourare declines now. .he s&p diet down 9/10 of the this is bloomberg.

david: live from new york. vonnie: this is bloomberg markets. back.hompson is

>> president trump has signed an executive order and that cutting relations for small businesses. agencies to identify to regulations they will cut for every regulation. one of the most prominent supporters in keeping the u.k. in the your payment union says theresa may can relax. there is no chance parliament will prevent the time -- as the head of the main panel of lawmakers scrutinizes the policy. the rival social democrats have re-energized with a re-energize chancellorover

merkel. show she still has a substantial lead. vonnie: thank you for that. let's get a quick check of stocks. out a tenths of a percent. the s&p down 9/10 of a percent and nasdaq down 1.1%. some american airlines as well and airline stocks lower. -- uld imagine >> we are looking at declines for u.s. stocks. are some ofe losses

the game your indexes including the dow transport, the semi conductor index. all these are down farther than the broader indexes. investors selling these higher sectors a bit more. the big drag for biotech all down in a big way. what stands out here is the stocks selling off telling and certainty around the macro. you mentioned the airline sector.

the airline index his worst today drop since frexit. bloomberg intelligent analysts polled our team that is a common vision to do with a trump travel ban plus the delta automation. it is tough to know which is the bigger cause. the to talk about what technology solution means for retail services. 20 years ago people made fun of bezos and amazon saying they don't make any money.

-- that will continue to accelerate. the one exciting for now is grocery. western gpd is driven by the consumer. a large piece of gdp is the consumer. the largest piece of the consumer is tell. the largest piece of retail is grocery. it is the only thing you buy every week and to that which you buy this week is basically identical to what you bought last week. we all spend an hour or two buying the saints of every week. it is ripe for takeover. you look at fresh direct, peapod, it is still not taken off. we see now is the country's .argest kosher walmart

in 2015 there is something called click and collect. next week, it is all the same basket. walmart offer that to zero stores. by the end of 2016, 80's. oft is said is by the end 2017 2000 source. is coming. the more fascinating one is where the leaders in the world are and that is the case. groceries are not just clicked online, but there delivered to your home. the reason for that is you get better selection so you're average purchaser can only cares any. they will match the price you

can buy at the gorgeous or. deliver within a one hour window. here's the one i think is most fascinating and people don't fully appreciate is the quality or freshness. in the carter's system because it is all centralized. they don't have hundreds of stores. the only hold 40 hours of fresh bananas,- apples, fish. you are receiving fresher product. so -- not >> why would you want over a companyto like amazon that is demonstrated that it can time and time again dominate. >> you can pick both. what you don't want to pick

is walmart? i think for the last one in five years they are always trying to play catch-up with amazon. the -- o is he has made decisions other people mock that turned out to be really right. oconto says no we will deliver a one hour window to your door and we will do it in three different temperatures. ambient, chilled, frozen. the technology is much more advanced. if i was walmart, i be really aired about what amazon fresh is trying to do.

grocery business is the holy grail. the reason it is the whole grill it is the largest, but more importantly -- when you have someone buying every week you now know everything about them. it is about data. once i know what you ordered. , know you have a cat or dog now i can target market you. that is the most vital data on the planet. , thatou're watching on tv is less interesting. what you are consuming and spending money is the holy grail. >> i could see how amazon makes use of that. cotto --on cotto -- on a >> once we have the basket going

-- our house everyday -- how do you get your head around that? >> it is the same argument people made with amazon for 20 years. the map. at is follow thek at cash. for us, follow the consumer. watch what the consumer is doing. peter lynch r.o.e. on wall street. he wrote watch your own behavior. so we follow the consumer. amazon is going fast. you have to look at discretionary operating cash flow. bezos.h flow given to

he chooses to reinvest back into .he business people say islamic and money. he is making a lot of money. they have to learn how to value that. best investors of value-based, but they are also patient investors. three, 5, 10 years. more on his interview, let's bring in error chapter. he must have a good view of the u.s. economy and consumer. this is aboutnt the u.k. consumer. there's a lot more questions

about them than the american consumer. the thesis applies to no matter where you are. this information with seen in books and consumer goods is going to sweep the grocery business at a pace that nobody is prepared for. fundamentally his thesis. that is why he believes that o -- ocado is the next amazon. will they be as big? no. but once people get a taste of it you will be able to stop. to anemember talking early investor in the labor and said is a hard thing to do.

>> he believes it is there. i don't know if they are operating at a larger scale to demonstrate the business model is replicable and market aftermarket aftermarket, possibly country after country, but i will go back to the early part of the interview where says this is what people were saying about amazon. no but that amazon could do it and then all of a sudden before you know it, amazon had done it. the other thing that is worth is that it is making money already which is one of the things people criticize bezos for that amazon did not make any money. he says amazon does make money. invest that money

into things that don't return capital right away to the bottom line. vonnie: thank you for that. .hat is eric chester david: justin trudeau is welcoming those. latestto toronto for the . this is bloomberg.

you are watching bloomberg. -- d:

units. india cellular would create the company's largest mobile carrier. david: even with support from president trump on the keystone pipeline, there are still potential hurdles. vonnie: warren buffett speaks out against president trump's executive order on integration. announcement, he told of the critical role of the united states. >> this country has been built and bless my regrets -- by immigrants. david: economic confidence in the area hits a high this month.

the report has decided that the stronger growth will fuel over the stimulus. -- the indian curry -- intercom introduced a number of free services. sony is it saying hooray for hollywood. a billiony is taking -- two to go sony chief michael litan is stepping down. vonnie: time now for bloomberg quick take. from canada are

stick and thinking like peanut butter and they are plentiful but the fuel produces more greenhouse gas. in addition to the existing keystone pipeline. the project may get a new lease on life. office,s after taking tosident trump took action ensure the parts are built in the united states. minister jessica says he favors new construction of pipelines, but has taken steps to do more on climate issues. present barack obama rejected the pipeline and 2016 after an angry, seven-year debate.

prez obama says the project would not lower gas prices or enhance. fuel produces more carbon than conventionally produced feel, partly because it takes more energy fuel to extra. here's the argument. and bottomless -- pro keystone forces argue -- president trump says making the process more simple for companies and everyone else who wants to business in the united states. at bloomberg.ore

head to bloomberg.com.

♪ vonnie: this is bloomberg markets. david: many world leaders stress there is agreement with donald trump of the play over the weekend. canadian prime minister justin trudeau wrote to those fleeing persecution, canadians will welcome you regardless of your faith. diversity is our strength. now is lily. what is the latest on the terrorist attacks yesterday? >> the latest information is that six people were killed. are ine five, two people

life or death condition. was an attack on a mosque. miles from montreal. told -- opened fire on the group. we have to arrest reported from canadian officials. their not sharing identities. it it is an act of terror, it would be one of the worst in canadian history. vonnie: is it for certain that it was an act of terror? >> it is not clear. it is being treated as such by investigators here.

again, it is not clear whether .n fact it was the prime minister did call it a terror attack and he certainly rebuked it and said it was an act of senseless violence. i think this is an interesting haslopment because trudeau treated this immigration issue as an important one for his -- with his innovation policy that might come into question among critics. has the approach changed -- is ats it at the the same? >> it is for now.

the latest information we have right now is this. trudeau issuing a statement over the weekend saying national flynn confirmed will not dual systems be effected by this band and we have entered canadian citizens will be done with in the usual process so canada among the many countries around the world feelings with the confusion over this 90 day ban and what it means and seeking clarification of the terms. clear theyade it were in touch with the department of us home insperity to get that clarification. after that, we learned that 35,000 canadians who hold dual

longer bep will no covered by this executive order. they will not be stopped at the border. it also applies to citizens of those nations who are permanent residents of canada. thank you. vonnie: bill had, more reaction .rom the immigration order this is bloomberg. ♪

. .

ongoingt is due to the -- it is to clock a.m. to hong kong, i'm david gura. vonnie: and i'm vonnie quinn. welcome to "bloomberg markets."

from bloomberg world headquarters in new york, we take you from washington, d.c. to san francisco and london in the next hour. top stories on the bloomberg and from around the world. stocks off u.s. session lows, down since the election. three major averages down about 1% since the truck order on -- trump order unnerved investors. in technology, silica and valley -- silicon valley is outspoken. microsoft, facebook, speaking out. shares are in the biggest s&p losers today. much more reaction on the executive order with former minnesota governor tim valenti this hour. we were talking about stocks,

and we are halfway into the trading day. julie hyman is here with the details. julie: this is moderated to some degree slightly over the last couple of hours. at one point, all three major averages were down more than 1%. that distinction goes to the nasdaq. some of this has to do with concerns over the trunk administration -- trump administration executive orders. check represents some of the largest drag we are seeing today. microsoft and alphabet among them. the of america among financials is down today as we see bond deals down. folks are selling stocks. on an individual basis, there is news to talk about. we have the matches maker down sharply after it said contracts for all of its product lines were being terminated with mattress firm. , they are down

sharply among some of the other movers we are watching today. down 32% today. ,e also have right aid falling after the merger got smaller. the companies agreed to a potential lower price on this deal is going to be dependent on how many stores they have to sell to get regulatory approval. and fitbit is cutting jobs. 110 jobs, 6% of its workforce after fourth-quarter results will not be analyst estimates. these of the other individual drags overall. as i say, there are other aspects to the story. oil prices are down today, energy stocks are down today. that's a big drag as well that we are seeing on the s&p 500. with the s&p energy sector and white, the s&p 500 and blue, they are tracking pretty closely. on the bottom, we have the correlation which broke down postelection. it's reinstated at the beginning of this year.

the correlation is not one to one, but we are looking at 0.075 correlation. exception perhaps some of the selling today is among retailers, one of the sectors that been beat up recently. we had consumer spending the highest in three months. the numbers we got out this morning. back and one of the things that are boosting these retailers. david: a big week for data. let's check in on bloomberg first word news. mark crumpton has more from the newsroom. mark: president trump is defending his confident -- his controversial clampdown on immigration. the president said only 109 international travelers were detained and held for questioning. later, president made reference to his new policy while meeting with small business leaders. trump: where she had a very good day yesterday. in terms of homeland security.

we had to make the move we decided to make the move. four federal judges put part of the immigration plan on hold. the president will announce his choice on the vacancy for the supreme court tuesday night, according to abc news comment mr. trump narrow the short list to two judges. there's not an opening on the court since last february when justice antonin scalia died. don'tbec, police say they know the motive for a deadly attack on a mosque. six people were killed and five wounded last night after a gunman opened fire to two suspects have been arrested. the canadian prime minister called a terrorist attack on muslims. in the philippines, the president says he will dissolve all police units involved in this controversial war on illegal drugs. rogue officers or the units have been implicated in the murder of

a south korean businessman. prosecutors say the victim was killed inside national police headquarters. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. david: president donald ramotar -- presidenton donald trump defending the immigration ban. vonnie: he's been active in many administrations. bothe seeing people from sides of the aisle calling on the president to back down. business leaders come out openly disagree with what happened on friday. what are your thoughts on this executive order and whether it

has teeth? >> is certainly very disruptive. the irony is, it was meant to improve the security and the safety of americans. i don't think it will do that. the things you learn from police chief's in new york and elsewhere is cooperation with the muslim community in this country is very important to identifying security threats from the muslim community or elsewhere. withd, we need to work iraq -- a lot of people, translators and others, we turned our back on them. it's been very disruptive to a lot of people who relied on the united states. third, we want to develop a stronger coalition with muslims in the air world and elsewhere, this works exactly against that goal. it doesn't really strengthen national security, it weakens it. and american principles that

american values are very important part of american strength in the world, the thing that enables other countries to look at the united states and emulate the united states, and support united states. we compromised on values, which this doesn't variety of ways -- the statue of liberty is the icon of american values. these things undermine our credibility amongst other democracies and throughout the world. vonnie: there has been a lot of to the emotions of people and the various speeches that previous presidents have given. it's an extra ordinarily disruptive action to of taken on a friday afternoon at 5:30. what's more perhaps surprising is how little the agencies that were supposed to carry it out new about it before and after it was happening. have you ever been in a situation where a country was so unprepared for an action? mr. hormats: no.

that was one of the problems. had they consulted homeland security and the state department, the defense department, the justice department in a thorough way, had they vetted it with experts, they would have learned that our immigration laws are very complicated. ofy had no clear idea whether it applied to green hard holders, or how whether it applied to dual citizens. how would apply to all those people in iraq and elsewhere who helped american troops. there was so little, if any vetting the people who have the expertise in this area, and then when the president announced it, he said things are going nicely. at that point, there were numerous people that were held up. people he also said who needed to know were told. clearly, that wasn't the case. the people who were there trying to make decisions whether who could come and had no idea, no guidance at all. it's a troublesome thing.

vonnie: he always said on foreign policy, they won't know. they being an umbrella term for whoever it is out there that we might be taking action against. is this part of that? doll trump decided to take his first presidential step that would blind side some countries that might be aggressors? mr. hormats: the irony is, they were already told in the campaign by trump himself as a candidate that he was going to restrict the inflow of muslims. he was going to have extreme vetting. this was signaled in advance. the notion they had to do it very quickly to avoid people coming in before the deadline really is an odd thing to say, when they were told in advance by him, specifically that he was going to do these kinds of things. i don't think it was well understood by anyone who was actually writing what the implications of this were going to be. they needed more time to think it through and get the input of

experts in the government, there are many experts. i worked on this, i was in the middle east, i know a lot about this. but many people who are they are now know a lot about it, they could have been consulted, a lot seehese problems, we could this painfully humanitarian impact on many people. vonnie: what do you make of the choice of countries and the gentry's -- and the countries that are not on the list. it's not just the part of administration that is picking on these countries. not just one, but two previous of ministrations, democrat and republican. there's no political bias here, or is there? the differences he referred to the obama administration coming up with these countries, this list of seven. they were identified as countries where there was terrorism going on. there was never a utilization of that definition, that characterization to make the kind of sweeping restrictions on

immigration that have been made in this policy that the president has just announced. -- whenthey really need they are making, located decisions, first of all, take their time and not rush. second, get the experts in the government to give them some sense of the impact of this. and really have a feel for the details of american policy. before they change it, they really need to understand all the implications. vonnie: the idea that this can , butne -- he created chaos it stopped people from getting into the country. it really did present. i'm sure the president tsai as strength. is that what you think our allies and non-allies abroad think of it as? strength or weakness? mr. hormats: the president has indicated his strong desire to be tougher, in terms of vetting people who are coming in.

that is something he has legal authority in numerous areas to take action to do, to strengthen our immigration policies. but the key is, how do you do this? does it look strong to come up with a policy that is so confusing, we are so few people seem to understand the policy? even the chief of staff of the white house didn't know if it applied to green card holders or it didn't. if he wants to present strengths, he also has to demonstrate some degree of capability to put forward policy that is understandable, where the rationale is clear, that people can implement in an effective way. but a policy for that is not understood and is confusing really doesn't project strength. he could do number of things, but he has to them in a more effective way, in a way that clarifies rather than confuses the whole process.

, thank you hormats for joining me. emotions are up, running high in silicon valley after president trump introduced immigration instructions over the weekend. we look at why the areas highly skilled tech workers are in the crosshairs, that's next. this is bloomberg. ♪

david: this is "bloomberg markets," i'm david gura. vonnie: i'm vonnie quinn. david: executives of many tech companies are opposing president trump's new immigration ban. vonnie: first, breaking news. getting near to a deal on mirror trades. it was a deutsche bank mirror

trade set to be imminent. deutsche bank settled with u.k. regulators. downhares of deutsche bank 2.1% today, although shares in general are lower today. they say is not policy that his company can support. senior executive of global technology of bloomberg of how uber, airbnb, and the companies of silicon valley are changing the world. brad, great heavy with us. we mentioned this earlier, tech seems to be at the vanguard. it's really great. how much ordination was there? >> a little coordination, that kind of a herd mentality. mark zuckerberg on friday and then everyone came behind him. a couple things going on. dna withalley has

immigrants. there's a lot of sympathy for immigrants and refugees. these are blue state companies. if the employee is that are putting pressure on companies to make a statement. at the beginning, there was some hesitancy they would get onto a trump enemies list, but the political calculus has changed. they really feel that strongly about it, why don't they resign their position on the executive visor he board -- advisory board? --mr. stone:the that's the question. they want to see it. vonnie: that's more to support cabdrivers. mr. stone: there's not a lot of rationality to that at all. there's really no rationality. ft.anything, it's ly uber is getting the blowback.

that ibm is on the council as well. other executives. they have an agenda, obviously, and they think they can make a difference. do you want them there? or is the pr hit so bad that you step back. david: to what degree does this rest on peter thiel's shoulders? a go-between was during the transition. we doesn't have a formal role in the administration. i don't know the extent that there is a lot of communication. the pilot this week suggests they didn't get a whole lot of forewarning. there's a question raised about the h-1b b subprogram of a in silicon valley developer major revisions with a trump administration. we don't get this as the companies are being consulted on that either. redstone, -- brad stone,

he will be back to talk about that but later in the week. vonnie: there's a cover of it. congratulations, brad. still ahead, exclusive interview with tim pawlenty. his take on president trump's travel ban. this is bloomberg. ♪

vonnie: you are looking at live pictures of the white house press briefing room, we are waiting for sean spicer to take the podium. that should be in less than 10 minutes. i imagine some of the questions will have to do with today's executive order, rolling back regulations are putting into two where everyone created. defending thes immigration crackdown. david gura is here with a special guest. ,avid: tim pawlenty joints me

it's great to have you with us. i will have you comments ahead of the financial round services table. but you with the governor of the state of minnesota, known for having a large refugee population. how did you react personally to the news of this executive order? everyone should take a step back and take a breath. for the most part, is a 90 day moratorium, it's not a permanent moratorium. it could have been handled better, obviously, in terms of people with green cards, people who were already on their way here and have been properly vetted. the idea that he's taking a 90 day pause, selecting certain countries that do have some history around challenges relating to security isn't something that should set off this big overreaction. i understand the concern. -- shouldink people step back and take a breath and say it's 90 day moratorium. david: is there an issue with

stigma? and if there is one, how did you deal with that as governor of minnesota? mr. pawlenty: you have to balance to competing values. society,ving an open being a country of rights and immigrants and historically welcomed properly vetted refugees against obvious and severe security concerns. if you misjudge or misfire on one concern, they can have very large consequences. it's a tough balancing act, one that has both of those factors that should begin proper weight. david: that is reaction of tim pawlenty. how is your reorganization reacting to the news of this changed immigration policy? mr. pawlenty: we haven't taken a formal position on this, but our focus and charter relates to financial service, public policy . this isn't something we have been asked to weigh in on. seen lloyde

blankfein with a voicemail message. how big of a deal is immigration? is immigration reform one of the issues? mr. pawlenty: it's not something we have been asked to weigh in on. it's not within the scope of the work we are asked to do by our members. the country is a country of immigration. everyone who is watching the show, unless you are a native born american, is a descendent of an immigrant or an immigrant himself or herself. we should celebrate that, but it needs to be legal and safe route the statement i just made should not be viewed as a radical statements. david: let me ask you about a an executive accident -- action on financial reform. let's see what president on from have to say after signing that executive action. donald trump: it's almost impossible now to start a small business. it's virtually impossible to expand your existing business because the regulation. and because of the banks don't loan you money -- dodd-frank is

a disaster. we going to be doing a big number on dodd-frank. david: how should we interpret that? from your perspective, what should be done to financial relation of this president? mr. pawlenty: he made a number of comments about dodd-frank, but they are general. we are naturally means in detail. a number of the people working on this at the cabinet level have not been confirmed. the details are important and yet to be determined. something they might look at would include reasonable adjustments to dodd-frank, so you still protect consumers and taxpayers in the economy, but making sure you don't suffocate and stifle things that are needed like lending to small businesses and consumers. example where tweaks would be in order. david: is more regulatory transparency getting any closer? mr. pawlenty: it might. if you have a consumer protection bureau, helpful to consumers in many respects, it's run by one person without

oversight by congress in terms of appropriations or a board. many agencies have those due process components. it currently lacks that. we think that would be a good process reform. tim pawlenty, thank you. vonnie: wonderful. thank you, david. we are waiting sean spicer's latest press briefing, the first following friday's executive order banning people from predominantly muslim countries, from coming into the states. once again, we are watching that and we will bring you live. you can watch under bloomberg. this is bloomberg. ♪

vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. david: i'm david gura. this is "bloomberg markets." mark crumpton has more from the newsroom. ank: president trump signed

executive order aimed at significantly cutting regulations for small businesses. the white house says it requires agencies requesting new regulations to identify to others they will cut -- two others they will cut. the president called the dodd-frank banking reform law a disaster and says his at administration will be doing a big number on that. a terror suspect was charged today for the november 2015 assault to the french capital. after charged in paris being handed over to french judicial officials by belgian authorities. that is according to the french press. authorities say he and another suspect were part of the cell the carried out the attack in paris that killed 130 people. the united states is picking on a new evaluation on whether the chinese and russian leadership could receive a nuclear strike

and keep hurting. congress ordered this before president trump took office. a pentagon spokesman says it's too early to pass on any details. british opposition leader german gorman is defending his decision to force labor party lawmakers to vote for triggering brexit. he tells itv any members of his leadership team who refuse will be expected to resign. two members have already quit in protest over his order. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. vonnie: thanks. many technology ceos are voicing opposition to the all caps order on immigration. transactions are hurting employees around the world. it's un-american and it pains us all. microsoft released similar statements.

in exclusive interview on bloomberg daybreak america's, they asserted it's time for business leaders to wake up. glad to see what many in the tech community of said. i think they recognize that as global businesses, they've got a huge stake in the united states being a nation of the statue of liberty rather than a nation of refugee camps and barb wire. they got a huge stake in the united states supporting an open, tolerant, global system. they have at stake for their employees, they haven't for their customers. they have it for the reputation of united states, they have spoken out. i have been gratified by what we've heard out of the tech sector. of thed less so far out mainstream business community. i'm going to be watching in particular the members of the advisory board that president

trump has appointed to help the make america great again. is ane this action important test of that. we will see whether they're going to go along with it, or whether they are going to speak out. i think what john mccain and lindsey graham did is merely a very good example of principled leadership. and at moments like this, everyone is tested. about whether they speak out on what they believe, or whether they decide to accommodate. vonnie: harvard university president and former u.s. truckers -- treasury secretary lawrence summers. david: we speak with the ceo of saint bridge capital, next. this is bloomberg. ♪

david: this is "bloomberg markets," on david gura. with president trump considerable re-tasked tax to offset the cost of a wall with mexico, u.s. retailers made their the cost of the measure. we are here with a very , you have at phenomenal portfolio of private equity funds and some of your companies included some internet retailers and top designers. really helping out with top designers these days will

probably let it keep going. another headline says it's been a revolving door. let's get to why you are here. is it possible that text on manufacturing could grow again in the united states and companies stay in business? grexit will be a slow transition. i think the border tax would be a big blow. i also don't think it's realistic. i think that if there was a border tax that applies to apparel, it may be something that actually is turned around. where some of having a border tax come you give an incentive to accompany to manufacture. to build a manufacturing plants. one to get into congress and it starts venting through committees and people have their say, it's not realistic to overnight have manufacturing

automatically come back to the u.s.. vonnie: at the moment, the president is focused on things like carmakers, it's already a huge issue. he hasn't really fixed his gaze to the textile manufacturing. what happens -- there's a quote like to share with our viewers and text manufacturing opportunity and elaine -- in delay -- in la. nevertheless, it looks like it's possible for there to be a hub somewhere in the unit states. mr. lamastra: seleka doesn't exist in all. but with luxury, you might have an italian manufacturer with fabrics or higher in shoes, it's very difficult to do in the u.s. .

it's not just a money issue, it's a training issue. these factories overseas have been there for decades, even longer. the u.s. is in really prepared. denim., you have a lot of , why was a more basic type manufacturing going on. beene: tom hilfiger has your business partner for 20 years. mr. lamastra: dominique gillibrand is joining our advisory board. he has been a great addition. we've been speaking with him for the last several months. he's going to be joining momentarily. a has been onl the board. vonnie: you speak the top designers are really basis. what are they saying about these policies? mr. lamastra: everyone is nervous, but we are an emotional state where every announcement from the white house is being taken a little too far.

i think that once we start talking about law it has to go through both the house, senate, through committees. the filters get involved in these laws. when they actually are enacted, don't because going to have the impact that some people are worried about. with respect to our portfolio and people we are advising, and telling them not to panic. immigrationgs like and he could be a major issue the textile industry as well. angeles, i'm sure as many factories as there are, i'm sure some of them count on immigrants. mr. lamastra: at the end of the day, what is the goal? if the goal is to bring more manufacturing in general to the u.s., first of all, it might be industry-specific. it might not work for every type of industry. textile might be one where he doesn't really work. secondly, if you are going to have this goal of manufacturing

in the u.s. -- i like the idea of bringing tax incentives to manufacturing versus penalizing those who don't manufacture. that is something that could be put on the table. if there's a general tax cut, the margin will be saved. it's complicated. if you have a border tax, is the tax going to be a deductible tax? vonnie: broadly, you don't know yet how you are going to be reacting. but not negative. giveamastra: you have to your finger on the polls, but i wouldn't make any major moves. vonnie: designers survive this cycle? mr. lamastra: they did. joseph lamastra. spicer: the president offered his condolences as well as thoughts and prayers of the victims and their family and to all canadians read this is

another senseless act of violence that cannot be tolerated. the president also pledged to support the canadian police and intelligence service in any way necessary. prime minister trudeau was extreme way appreciative, he was also conscious to draw conclusions on the motive at this stage in the investigation and the president shared those thoughts. canadian law enforcement officials are actively investigating this matter. we condemn this attack in the strongest possible terms. it's a terrible reminder of why we must remain vigilant, and why the president is taking steps to be proactive, rather than reactive, when it comes to our nation's safety and security. praying for those injured in the attack and are keeping close contact with officials in québec and canada. recap moving into a quick of the events of the past few days. the president have extremely busy weekend. he followed up on a week of action with a weekend of action. on saturday and sunday 11, the

president spoke with eight , signedleaders executory delivering on some of the biggest campaign promises he made to the american people, and he met with staff to continue to plan another busy week. also this weekend, we carried out a very successful raid against al qaeda in the arabian peninsula, which resulted in the death of estimated 14 aqap members and the capture of intelligence that would help us prevent future terrorist plots. rate,ally, during this the life of the brave service member was taken and four were wounded. our thoughts and prayers are with the family of his fallen american hero, and we pray for a speedy recovery and complete recovery of those service who sustained injuries. as a quick recap, on friday you saw the president's enthusiastic reception at the department of defense for the ceremonial swearing-in of secretary matus as secretary of defense. while the pentagon, the president signed executive

actions to protect america from those who wish to do is harm. this focus on securing the borders in the homeland was obviously a major part of the president campaigned on. now he's doing exactly what he told the american people he would do. will always for the safety and prosperity of our country first and foremost. we kicked off saturday by launching the weekly address which debuted for the first time on facebook live, nearly 11 million people were reached by the address online, over 1.1 million people engaged with the post via comments, likes, and other interactions. as of this morning from the video has been viewed almost 5 million times. throughout the campaign, this is another example of the president being able to take his message directly to the american people. saturday, the president signed three executive actions on issues ranging from government ethics to national security. as part of the plan to bring this want in washington and return power to the american

people, he cited executive order imposing strict postemployment roles on all federal employees, including a five year lobbying ban and a lifetime ban for foreign government lobbying among other restrictions. the president continues to make it very clear that if you want to be part of a trump administration, you're going to be serving the country, not yourself. the president also signed a modernizing the homeland security council. there has been a lot of misreporting this week about what this memo does and does not do. let me walk you through this real quick. two issues at hand. one is the makeup of the nfc, the other is the makeup of the principals committee. the principal committee is merely the nfc minus the president. the ideas of the chairman of the joint chiefs of staff are not being downgraded. every nsc meeting and are welcome to attend the

principals meetings as well. the memo lays out if there is a principals meeting that is outside their scope, for example, a homeland -- a domestic issue that doesn't change the military, they are not required, but certainly welcome to be in attendance. we recognize that certain homeland security issues may not be military issues, it would not be in the best interest of the joint chiefs valuable time to be at these meetings. just yesterday, we called several outlets who were severely mr. ordering this topic to better inform them about what this memo means. then he walked through this real quick. nsc standup2001 memo. this is the 2009 memo. is 2017 right here. this is the language that consists of the national security team, the director of central intelligence and the chairman of the joint chiefs of staff as statutory advisors to the nsc shall also attend nsc meetings.

as the identical language in 2012 -- 2017 as it was in 2009 when obama drafted his. verbatim, identical. the makeup of the principals committee from 2017 is exactly as it was in baltimore 17 as it was in 2001. 100% identical except we added the word also. i think it's pretty clear if you look at all three of these, that's what it does. to be clear, the memo just yesterday, starting with membership of the nsc, the language that's part of the president's memo is identical to the language from president bush in 2001. the only thing that changes the additional the director of national intelligence. worth, is the same as obama's save for the word also. in terms of principals committee, as you can see from the language here, this is 2017

inthe principals committee, 2017. this is the 2001 principals committee. it is literally 100% the same. and 2017 are identical. his idea that there's been a change or downgrade is nonsense. with respect to the joint chiefs of particular, the president holds chairman dunford in the highest regard. the suggestion that he would downgrade the important role of the chairman plays in matters of national security reveals a fundamentalist understanding of the tremendous respect that the president holds for both the chairman himself and the joint chiefs as a whole. know someoned, i tweeted out where was the cia in this? the cia hasn't been part of the nsc since the dni was sworn in for the first time in 2005.

that being said on the president for directorect pompeo and the men and women of the cia that today on the president is announcing that he will amend the memo to add the cia back into the nsc. there was a tweet yesterday from the former national security advisor that said where is the cia out of everything? to remind the former national security advisor that when the memo was drafted in 2009, i don't see the obama administration including the cia in theirs. it is president trump is including the cia, not the former administration. just to be clear, when it comes to the cia, number one, it wasn't part of the restructuring of the nsc after the dni was named an sworn in in 2005. we are the administration that is adding it back into the nsc and amending it. the obama administration didn't have it in. to answer the former national ciarity advisers tweet, the

is in hours and it wasn't in theirs. -- the president also signed another memo at the department of defense instructing the joint chiefs of in the next 30 days to deliver to him a plan to defeat isis. this comprehensive strategy and plan must include a recommendation the changes to any rules of engagement and other policy restrictions that exceed the requirements of international law regarding the use of isis. efforts to delegitimize isis and its radical ideology. identification of new coalition partners and policies to empower coalition partners to fight isis and its affiliates. mechanisms cut off isis rental support including financial transfers, money laundering, oil revenue, human trafficking, the and otherooted art

revenue sources, and a detailed strategy to robustly fund the plan. statementprofound that the president's clear objective is to defeat and destroy isis and that we are going to do it systematically. this is not only a necessary step for america's national security, it is also of humanitarian imperative. if isis is left in power, the threat imposes only grows. it has attempted to develop chemical weapons capability and maintains a goal of recruiting homegrown terrorists, and attacks continue to mount. the united states must take decisive action. the president is taking the necessary steps. heldthe weekend, president constructive phone calls with the heads of governments from australia, france, germany, japan, russia, saudi arabia, south korea, and the united arab emirates. during the calls, the president reaffirmed our partnership and discussed strengthening mutual

defenses and interests throughout the world. the safety of the american people and security of america homeland continues to be the president's top priority. his outreach to these leaders is a critical step in turning the page on the failed foreign policies of the past eight years. notably, he did all this in the face of extreme obstructionism of democrats in the senate who are holding up 17 of his department or agency leads that require senate confirmation. in contrast, 10 days into his term, president obama only had seven people in these positions awaiting confirmation. president bush had all but four confirmed. if that democrats think the voters are going to be a-ok with them continuing with business as ,sual, dragging their heels they sorely misunderstood the message this november. the truth is, these canon members are unbelievably off it and we'll all be confirmed by the senate, democrats notice. it's time to stop playing political games with the core functions of our government. this morning, the office of the u.s. trade representative sent 12 letters officially notifying

the nations to the transfers of a partnership that the u.s. has withdrawn from the agreement. the next outage of fill in the tosident's campaign promise get the country out of acceptable trade deal to dump in america's interest first. the president will continue to negotiate new, better trade agreements that will bring jobs back, increase american wages, and reduce the trade deficit. the white house office of the governmental affairs is that hard at work making sure that all lines of to medication are open at all levels of government throughout the country. as of today, the white house is made contact with all governors office in every state and territory and deeper dive conversations on a range of issues have already taken place with 32 governors or their offices. outreach efforts have touched 22 of 50 state attorney general, 32 of 50 state secretaries of state , 16 speakers of the house, the leaders of the 10 largest federally recognized tribes, and the leaders of some of the country's largest counties and

municipalities. all of expressed enthusiasm about working with the white house on issues impacting their local communities and families. the injured governmental affairs thece is also preparing for national governors association meeting in washington at the end of february, at which the president lance to host a dinner. today, the president started his day with breakfast and listening session with small business leaders, it was the attendees is available if you are interested. the meeting comes on the heels of similar listening sessions that the president held last week with some of the country's top is this an union leaders and frontline workers. he made it clear in his first is fullyffice that committed to fighting on the half of american workers and small businesses. this morning, the vice president hosted a breakfast with the king of jordan at the naval observatory and the president expects to read the king this thursday at the national prayer breakfast. the vice president thanked the king for his efforts in

advanceing peace in the middle east, and reaffirms their commitment to jordan security and economic developed. they discussed events in the region including ways to accelerate the coalition efforts to defeat isis and promote a political solution to the syrian conflict. the vice president welcomes the king's views on potential changes involving the u.s. embassy in israel and reiterated that the united states is that the early stages of this decision-making process. the leaders discussed how to best make progress towards a copper heads agreement between israel and the palestinians -- a comprehensive agreement between israel and the palestinians. they pledged to stay in close combat -- close contact. the president signed executive order reducing regulation and control of regulatory costs through the order instructs the director of office of management and budget to issue guidelines and for every one new regulation , two existing relations be limited.

-- regulations be eliminated. the cost of only regulation must be no greater than zero for each agency. each agency will have an implementable -- an incremental cost cap beyond which they cannot issue regulations. this is the first step in the president delivering on his promise to slash bureaucratic red tape that is choking our nation's small businesses. the federal government will no longer punish americans for working and doing business in the united states. every year, over regulation costs our economy billions of dollars and reduces the will of every american household. this executive order will help get the economy back on track and is part of the president's bold plan to create 25 million new american jobs in the next decade. it's worth noting that this order is perhaps the most significant and ministry of actions in the world of regulatory reform since

president reagan created the office of information and regulatory affairs in 1985 -- 1981. i'm pleased to announce that prime minister netanyahu will visit the united states on february 15. our relationship with the only democracy in the middle east is crucial to both our nations, and the president looks forward to discussing strategic, technological, military, intelligence corporation with prime minister. tomorrow, the president will announce who he intends to nominate for the spring court. and for a party preaching tolerance and it's interesting to see some democrats have already come out against these unnamed individuals. with that, i'm glad to take a few questions. weekend, the president requested the king of saudi arabia join him by supporting syria. what type of support does he pretend -- he intended to provide? sean spicer: there is such

strong agreement with how we address this problem. you are seeing across the spectrum. it's important we have stability in the region. i think the idea that this was an area of mutual discussion and agreement is important when we talk about stability in the region. we will have continued discussion about it, but that first step of getting both sides on the first page was a huge step forward. today president said about [inaudible] i want to ask you a question related to that. today is the biggest market drop since october. one of the uncertainties for investors is that tax reforms might not get done this year. my question is, can the administration commits a major tax reform in 2017? sean spicer: it's a two-way street. using a commitment for the president to fight on behalf of small business.

as with his regulation thing was today. it can't underscore how important it is. since 1981, we haven't seen anything of this magnitude to address the regulation -- the regulatory impact that small businesses face. we are going to continue to work with both houses of congress, senate finance committee and the ways and means committee to develop a comprehensive tax man. his -- tax plan. there is eagerness on behalf of congress do that. when you look at the us and downs of the market, but you look at consumer confidence and a lot of other market indicators, a trump presidency brought a lot of confidence back to traders and investors. more important, to job creators. you look at the number of individuals, small businesses and large businesses, automakers, all coming in and saying i want to be part of your efforts, your agenda to make the country better, to grow jobs here, to bring jobs back here. positive sign,

not just on the ups and downs of one days market fluctuation, but the overall commitment that businesses have to want to work with this administration to add jobs, create better jobs, and how the, find out president can easily regulatory burden they face. it's a holistic process is being undertaken to unleash the american economy. if the approach he is taking not just with small businesses and large businesses with union workers, he's looking at the energy sector. how do we unleash america's natural resources not just to help make us more energy independent, but how do we do that to create good paying jobs in america as well? >> to questions. one, how important is national security information, and [inaudible] sean spicer: that's not what i said. i don't think i can underscore this enough.

what we are saying is nothing has changed. we added -- the director of national intelligence and the chairman of the joint chiefs are by statute part of the nsc. . we made sure is on issues of homeland security and divisive policy, they are always looking to attend. if the issue is on pandemic flu or other domestic type natures that don't involve the military, it would be a waste of time to drag the chairman of the joint chiefs of staff over. if he wants to attend, you can come anytime. to try and talk about downgrading is a misreading of this. it's a disservice. for those people who took the time to read it, they understand that. i've seen so much misreporting on this weekend about downgrading this individual or upgrading -- the language could not be clearer. it is hundred percent identical. otherwiseding of it is a spread of misinformation.

plain and simple. >> you are saying there out of table. sean spicer: they were always at the table and they continue to be. any reporting otherwise is a misunderstanding of it 100%. >> they are at the table, how important are their suggestions or their statements to visit administration? sean spicer: unbelievable. if you look at secretary matus in the oval office, he was on the phone with the cia director pompeo this morning. he values their opinion. i don't think you can express in words how much respect he has, whether it's the chairman, general mass, general kelly, director pompeo. all of these individuals i think he has shown through deed in action and word how much he cares about them through the first document was to the cia, because of how much he values the work they do and the respect that he has for them. i don't know how much more he can do to show how much he values them.

about -- u talk vonnie: this is the daily press briefing sean spicer is holding with the press. let's check in with shannon pettypiece at the white house and joins us now. a lot of questions people have regarding the weekend travel ban. did sean spicer say anything about that? shannon: it didn't come up specifically, even though i know that's what all the talk is not about. he did begin the press briefing with a statement about the attacks in québec and pointing this is one of the reasons why president trump is trying to be proactive rather than reactive, sort of a reference to this idea of trying to secure the borders through this immigrant refugee policy that they put in place over the weekend. we haven't gotten any more details on that. >> obviously, that was a talk about this weekend.

a few other breaking news items this morning. if you more effective orders and point they're going to be focusing on. what is the focus on for them this week? sean: the supreme court nominee is supposed to be announced tomorrow. there could be leaks, there's a rather leaky white house. i wouldn't be surprised if we saw leaks this evening, but they are supposed to announce around 8:00 tomorrow. we kind of got a sense of who the finalists for that are going to be. trump put out a list early on the people he was considering. he hasn't really deviated from that. he's given a few hands -- hands -- hints. he thinks it is someone who's going to be able to get confirmed. while public and have control of the senate, is a very lose control. control.

if they lose a few republicans governor nominee will get held up like those are obama's nominee has gone held up. the more conservative judges who make more controversial statements might be out of the running because of concerns about trying to get them confirmed. shannon pettypiece, we will be speaking with you later in the hour. u.s. markets close in under two hours, let's check in where stocks are. julie: a selloff, the 3rd street and we've seen declines for the major averages. at one point out of the dow and the s&p were down by 1%. i have come back up a little bit. it looks like there are number of different concerns weighing on stocks. one of them is the confusion over the executive order on immigration that the president signed late friday. and also, it looks like trepidation about what other executive orders will bring. there's also a selloff we are seeing in commodities that is

definitely contributing to a downdraft in those stocks as well. to put this in perspective, here is the s&p 500 year to date. sideways, we went to a record for the s&p last week, now we are seeing this three-day decline, the first we've seen so far this year. even with that, we are still free much of the same level were at the beginning of last week. it's a pullback, but have not been a huge one. getting back to commodities come in the last hour, i was talking about fullback we haven't seen energy shares. natural gas is down as well buy mar-a-lago percentage basis. even though there's cold weather forecast, analysts are saying that will be the end of the cold snap is receiving gas prices fall and gas producers like range resources, chesapeake, down more in percentage terms than the more oral -- we'll oriented companies.

oil oriented companies. the 10 year is unchanged, earlier we've been seeing the next catching a bed. the doll -- the vix catching and beer. -- catching a bid. there's an index hereby bigger it measures avis, sentiment around the global economic policy. you can see it tends to track pretty well with the vix in purple. there's a gulf that opened up and that may speak more to the issue and debates about whether the vix is a good predictor or barometer of fear in the market. the vix is at a very depressed level even without global economics uncertainty index has spiked. oliver: thank you, julie. excellent vix breakdown.

let's stay on the market as investors weigh trump's latest move. tony mrs. robert albertson -- joining us is robert alberts. it is starting to feel like uncoordinated loose fire to investors. markets down today, should we read into this as reaction to some pushback to trump? grexit it's too early to tell. it's too early>> to tell. the economic power that comes from this and administration is enormous. you have an infrastructure program that could be 10 times as powerful as the last stimulus. you have very powerful moves in business confidence that literally shot up last month. as well as consumers at a 15 year high. it's the first time we've seen a business friendly administration in a long time. the flipside is can it deliver?

the appearance of the moment probably am nervous people because he does look a little you have tod and keep in mind the cabin is not fully there. we still don't know who's going to be at the fed in the anti-seats and some of the financial regulators. think you are seeing a natural search for a bottom, getting the anger down on the part of the investor. it's normal to see a retracing. i don't think that's necessarily over, nor do i think that means the good news is over. governmentu say spending and business confidence are powerful positives, but the same time, the president has appointed a tea partyer who is against deficit spending who has control of the first brings. how much can this really move the gdd needle? >> throughout the cabin, we see a lot of people who are impressive and also, have differences with their leader. scarlet: quite significant.

>> that has to play out as well for investors to get confidence. infrastructure spending, if you put numbers on it, at $1 trillion, however many years, that's about 6% of the current gdp. last time we didn't want at $830 billion in 2009, that was about 6%. barely 1/10 of it was infrastructure and the rest of it was scattershot. i think you can change the gdp numbers with his ever structure spending it is delivered properly. no reason why it shouldn't. secondly, you see this business confidence at this level, you will then see spending, so by springtime, we're going to find out whether the business community is going to go back in and invest and grow. and then we wait a year. that's enough to get the numbers moving. you mentioned around

spring, timing is an important issue. you have sentiment index is taking up, your confidence indexes taking up. one of the less sentiment oriented is plans -- capex plans. stanley, when do you, as an investor, decide to get ahead of that? how do you know when that translates into hiring more people? >> it should be easy. if you look up until now, before the election, the momentum has been pretty steady across the economy, with the exception of business spending. it almost collapsed for the last three quarters. , no matter how small initially, is going to get translated into an i see this coming. scarlet: i want to get your thoughts on the bank reactions an this trump traveled b

over the weekend. goldman sachs stood firmly against it. lloyd blankfein telling them from was no, this is on a policy we support. we will work to minimize such disruption to the extent we can within the law. we are focused on supporting colleagues and families who may be affected. is different than jpmorgan, who said diversity is good, but didn't express an opinion on the policy. citigroup and bank of america didn't even touch it. >> businesses should be commenting because nobody seems to know what it really is, and nobody in the business community wants to see anything bad happen with immigration. the irony about our economy is that sluggishness is primarily due to demographics. if you loosen immigration in general, the right kind of people, you really have a big needle mover. that's not going to happen. these different ceos and how they are reacting, you are trying to say something politically correct and call me.

me --all me -- and call and calming. oliver: theory interesting and complicated stuff. robert albertson, and sandler o'neill. thanks for joining us. scarlet: the white house says today is the first step in scaling back dodd-frank. we have more details. this is bloomberg. ♪

scarlet: this is "bloomberg markets," i'm scarlet fu. oliver: i'm oliver renick. scarlet: sean spicer is speaking about immigration. he says there's a need to look all visa programs.

they want, president trump is due to announces supreme court picks tomorrow night. joining us a shannon pettypiece and greg stuart, cohost of bloomberg law. questions from the press sean spicer about immigration reform, specifically what next steps president trump will take. what can you tell us? shannon: this is a huge issue for companies, pharmaceutical companies, telecom companies. a lot of interest in this area. on the h-1b visas, in a given the high skilled foreign workers, he didn't rule out taking any action on that. the president is looking at this and will consider any actions you can take, either legislatively. obviously, these drafts will change, but that will give the president authority for the agencies to then direct companies to hire the most skilled american workers, if you

can't find an american worker, then you can get the visa. the language is unclear. exactly does the executive order on friday look like? there's been some backtracking. is that largely in the green card element? shannon: around the executive order issued on friday. so, there was a lot of confusion friday and into saturday about whether or not green card from these countries were affected. working those days, my colleague was working those days we were trying to figure out in different arms of the white house for telling a different things. i believe where things have settled, all subject to change is that green cardholders are now subject to an extra layer of screening, and a stranger view. green her holders from those countries are still allowed back into the u.s., but they do have to go through an added layer of

screening, which could be an interview, but it's probably not would be detained for days or sent back to the country they came from, which is what the concern was initially around this. scarlet: greg shore, during the press briefing, sean spicer says president trump was 100% sure of his supreme court pick. this is an announcement that will take place tomorrow. will it be done through tweet, through a news conference? we expect him to hold a news conference. i'll trump seems to want to make a big show out of this. that's normally what presidents do. tweet would be a surprising way of introducing someone he is going to be apparently really proud of. oliver: when you look at the speculation, he dropped a few hands. someone that evangelical christians are going to like. what does that tell you? itch andneal gorse

judge tom hardeman. he sits in pittsburgh. they are both pretty conservative. gorsuch was in a book arguing against assisted suicide and euthanasia. both of them have pretty conservative groups -- conservative roots. an's case,ge hardim political donations. scarlet: thank you so much. oliver: still ahead, billionaire philip roth on immigration and dealmaking in the trump era, as well as news on their own drug pipeline. this is bloomberg. ♪

oliver: this is "bloomberg

markets." i'm oliver renick. scarlet: i'm scarlet fu. oliver: earlier today, i spoke with dr. philip roth, a billion-dollar investor with a of stock and holdings. without his company, the drug pipeline, and what they are expecting with regards to regulation and health care industry. >> the way to is set up, medicare relies on contractors to determine the eligibility for payment. contractors, there are 10 across the country that want -- that are responsible for covering a particular company's product is the one that located in a region where the company is located. in our case, it's not carmelo -- it is not palmetto. it's the ultimate determiner of payments. at first, they put out a positive indication, and a few days later, palmetto put out a

negative. we think it was based on a misunderstanding, and we've been working with them to try and reverse that. paid.me, we're getting >> i look at people who are making suggestions, and the score is a big part of it. how do you foresee the acceptance of that, the coverage of that happening as we move into a more volatile health-care landscape? are you concerned about how changes might affect some of these product? >> we are very enthusiastic about the score. it appears to be the best tests available, a blood test indicate the test -- the presence of an important prostate cancer. era in healthw care, we think this is exactly the type of tests that will be helpful, because ultimately, it saves costs and lowers costs by decreasing the number of

prostate biopsies that are performed with all the consequences and adverse events and so forth. it saves money, it avoids painful unpleasant experiences for the men who want to undergo the procedure. all around, it has a big future. when you look at a company's fundamentals, and your history here, there are a lot of acquisition and growth that comes the requisition. if you go through on bloomberg, you can see where the cash lines up relative to the day. on the cash and, it's been low and further shrinking. on the debt side, compared to your peers, you are very low on debt. really, i'm under peers, nor the lowest. when you look at where to create value through m&a, if you don't have it through cash, would you be willing to take on debt, or do you have enough on hand that you want to go out and push companies? mr. frost: we have so much on

our plate that acquisitions are not of paramount importance right now. this is a very good time for borrowing money, interest rates are an all-time low and the availability of cash is there. if something very special came along that we felt like we couldn't do without, i think we would try to finance it and use cash. big topic right now, want to get your take on the political development how could impact your business. but only does the biotech industry rely on some of the smartest minds around, you are also very passionate about the b and encouraging academic work in the field of science and stem industries. and limitinglation factors on immigration affect how you benefit as a ceo and how you perceive things?

richard ross: with the new blue glare that we're seeing now, it could be very promising in terms of decreasing regulations. oliver: that was my interview with philip frost. there's more, check out online at bloomberg.com. scarlet: oils living for a second day. -- oil slipping for a second day. from new york, this is bloomberg. ♪

i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business.

strong and secure. good for a door. and a network. comcast business. built for security. built for business. ♪ woburn -- from bloomberg world headquarters, this is bloomberg markets. futures are rising today and putting gold on track for the first monthly gain since

september after uncertainty of donald trump policies on trade begin to outweigh concerns about a possible rate increase in the u.s. silver is flat on the day, but it should outperform gold for the month of january, up 7% compared to gold at 3.5%. and oil declining for a second day, off by 1% after oil rigs in the u.s. climbed to the highest in a year and the reality of the opec cuts begin to set in. joining us is the cohost of daybreak america. alix steel. inx: the republican retreat philadelphia, donald trump called for independence. >> we will unleash the full power of american energy, ending the restrictions on oil, natural gas and clean, beautiful coal, and we will put the miners back to work. alix: and then a top producer

weighing in, the chairman of pioneer natural resources set a price around -- a city price around $55 would be good enough for sales to grow. it is boom time for shale. dale from is spencer bp. he released the outlook for energy, the longer-term view. i want to take a snapshot of the shorter term. what do you see the snapshot for shale under a trump white house? spencer: it has been growing for the last few years. it picking up since then they have last year and prices around the levels are expected to be continuing to grow. alix: our in-house team says a 30% increase is going to drive those rigs higher, so when does production relate to that? what is the lack t -- lag time?

spencer: we will see the rigs pick up over the next six months and you will see it, see the production declining for a while, but then with any production comes on stream it will grow. alix: does that make opec irrelevant, if shale is pumping? spencer: no, i think opec is significant. it is a key factor, causing the prices to rise over the last few months and i think the focus on the opec compliance will be a major factor determining the oil prices over the next year. alix: for the longer-term view, how do you see the supply world playing out? what is the next two decades like? spencer: it is a world where global demand for oil will continue to grow and the reason growing, we're likely to see growth with developing well, particular

china and india, something like incomes, people at low into middle incomes and if they do they will buy a motorbike, then a car, then it drives demand for oil. however, despite that, when we look at the supply of oil we are in a world of abundance in terms of supply. and measuring how much oil we know exists today and can be recovered with today's technology, not think about tomorrow, it is roughly around 2.5 trillion barrels. that is more than enough oil to out toe world demand 2050. twice over. so we are talking about a world of abundance of oil. alix: where does it come from? spencer: low-cost resources are in middle east opec, russia, and the u.s.a alix: if you have low-cost producers leading the way, what will be the long-term effect on

oil prices, $100 will never be seen again? spencer: the structure of the market is likely going to change over time. the structure over the last 20 years was categorized on rationing oil. oil that was not produced today can be produced tomorrow and we see the market where your low-cost producers like opec and high-cost producers all competing in the same market together, that is unusual. not many markets have that. so we go into a world where there are many producers saying, i do not want my oil from the ground, i will use the advantage to stop increasing my market share and it could lead to a shift in the structure of the oil market. alix: that is what we have seen, with the opec countries anyway will pump as much as we want fighting for market share, so that will be the new paradigm going forward for the longer-term? spencer: it has been different for the last few years, because

the driver was the enormous to ah of the u.s. and large extent, opec said they would not cut back, and then they had to work through china to find a position of working through that process. but going forward, we're likely to see moves in a direction where the low-cost producers will try to increase market share and that will have an impact on the supply and longer run supply for price trend, what it means to price it, but the abundance of oil is going to be a long-term dampener. alix: what are the long-term implications for price? spencer: what they suggest is, in a world with the abundance of oil, with some producers trying to be king and make sure their oil is not left in the ground, that will dampen the prices and prices rise by too much, then -- alix: downside versus upside.

great insight. thank you so much for joining us. spencer dale, chief economist for bp. scarlet: thank you. we are checking the headlines. mark crumpton has more. mark: thank you. the white house press secretary telling reporters today that coming to the united states is a privilege, not a right. his comments come after the uproar over the executive order regarding immigration. washington state attorney general says he is suing the president over that order, that has suspended immigration from seven countries, with muslim majority populations and sparks nationwide protests. and they say that bob ferguson has announced his lawsuit today and he became the first state attorney general to announce legal action against the trump administration over one of their policies. >> the lawsuit is straightforward, it asks the

court to provide key provisions executive order unconstitutional. mark: the president has said the move is aimed at protecting the whoon against extremists want to attack americans. and he has signed an executive order aimed at significantly cutting regulations for small businesses. the white house says it requires new regulations for identifying to others they will cut. meantime, the president called the dodd-frank reform law a disaster and says his administration will be doing a big number on that. and in germany, the chancellor's bid for a fourth term took shape over the weekend. the chancellor one key support from allies, and in the meantime, the rival social democrats have emerged with a reenergized challenger. martin scholz. however, merkel still have a

substantial lead. and defending a proposal to pardon more than 3000 prisoners, saying the measure is sparking antigovernment protests in major cities, and it is not designed to benefit politicians in romania, but to improve the situations in prisons. the romanian president says that proposal should be scrapped. others say it reverses the progress made by the ongoing anticorruption drive and benefits those group -- convicted of corruption. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. thank you. coming up, what the democratic senator jack reed said about president trump's travel ban. this is bloomberg. ♪

♪ is bloomberg markets. scarlet: time for the bloomberg business flash when we look at some of the biggest stories in the news. policymakers are urging the european union to set up a bank to tackle the money in loans. the target is the move as much as 267 billion of nonperforming loans to that bank. one proposal is to set up a company to take over and manage the selloff. the new entity would bridge the gap between the body of the loans and the price investors are willing to pay. and global investors cutting capital controlled by a cio and spreading money to top managers, part of an allocation triggered by the worst performance on record for viking. they saw their biggest loss since 1999. it was driven by positions on

pharmaceuticals, which moved to 45% last year. and u.s. airlines tumbling the most on the s&p 500 today, fueled by escalating concerns that the ban on travel from predominantly muslim nations will lower the demand for flights. investors are worried the restriction could be retaliated against. american airlines saw the most, dropping is most that -- as much as 6%. that is the bloomberg/ -- fal lash. oliver: democrats are demanding a meeting with kelly to talk about the executive order. earlier today, our chief senatorndent spoke with jack reed who is a member of the senate armed services and intelligence community, asking him for his take on the executive order. take a listen. sen. reed: i think they have

caused chaos and i think they have done more to undermine national security than to protect it. that ilarly concerns have is our status of military forces overseas, we have individuals engaged in combat operations in iraq with iraqis and this tension imposed by the orders, banning iraqis in particular and other muslims to come into the united states, has to exacerbate the difficulty they have coordinate. in addition, isis has already taken advantage of this for propaganda purposes. >> how so? sen. reed: they are indicating this is another demonstration of how the u.s. is against muslims everywhere, that they are out to undermine islam, when in fact we are trying to provide, and have for years, security and safety to millions of muslims who are

under attack from radical jihadists. the other point that is detrimental to u.s. security is we realize in the united states, that americans of muslim backgrounds and people who are legally here, we rely on them for information on what they hear or could be picking up and if there is a sense of alienation that they are second-class citizens, that could stop. and so all of these factors suggest that the policy is not all helpful, it is detrimental. >> the white house says this is not a muslim ban, this is a way to increase security measures to prevent terrorists from coming into the country and that even at one point, comparing it to actions that president obama had taken. what is your response? sen. reed: i think that is trying to paint a picture after have they have discovered the outrage of the american public in trying to justify something that is hard to justify. the random nature of these

isntries selected, pakistan not on the list, that is where the headquarters of al qaeda are located. and no really rhyme or reason to it. to indicate that this is not a muslim ban, where all the countries are predominantly muslim is kind of, it does not stand up. that is a poor policy. >> economically speaking, the reaction coming from silicon valley has been fast and furious. leaders at top organizations, facebook, google, tesla, have criticized it. you are on the committee, so how does this policy impact economics and trade policy with the u.s. and international community? sen. reed: it disrupts the movement of the highly qualified entrepreneurs, the tech experts, the academics who are part of

the overall economy that help the united states. conferences that you might want to post in the u.s., that will -- host in the u.s., that will benefit us, can you invite citizens who might be from iraq or other countries, the fact that they could be living elsewhere were residing in great britain but they are citizens of iraq -- all of this. as you know, people who are here legally, teaching in universities who are stopped at airports, who are at universities or in silicon valley, it just is counterproductive. the security issue is a hobby horse, it is something that has no credible evidence saying that this will have a direct effect. wronglyst impulsive and

, the wrong approach to deal with national security. oliver: that was senator jack reed speaking today with our chief correspondent who is with us. plenty of criticism. any solutions offered for what to do with this ban or in general with immigration? kevin: no, the republicans i am speaking with are telling me that they are frustrated that there is a lack of strategy coming out of the white house. mitch mcconnell pushed out no talking points for any republican colleagues here on capitol hill, that is unheard of. according to one senior member of the senate, in terms of a lack of strategy, a lack of cohesion coming from this white house and the senate leadership in washington. on the flipside, in just a few every democrat will

be going to the outside of the supreme court building in protest against the president's executive order. bottom line, this white house is facing pressure, not just in washington from -- but from the business community and silicon valley regarding this. i think you just saw from not only democrats but the white house press secretary, that this is going to continually -- continue to be a controversial issue. just one day before the president is expected to unveil another divisional choice for supreme court. scarlet: that will take center stage. i wonder if the senators said anything about doing something about the travel ban. kevin: he said with the exception of rallying support amongst the congressional colleagues, as well as using opportunities to highlight the opposition, legislatively speaking there is not much to do. he did signal however that

potentially he is working to get counterparts, most notably the chairman of the committee, senator john mccain from arizona, to have a hearing on these executive actions. if that does happen, it is unclear whether democrats would but if it- hearings, happens it is a signal that lawmakers here within his own party, are not sold on these executive orders. oliver: kasich of orders, we decide headlines, sean spicer saying there are more they want to push out. anything to you that is popping out there could be something that we see? evin: i wouldn't use the paint -- i would anticipate action on regulatory affairs, even social services or taxes. this is in flux right now and i can tell you that the messaging strategy called the white house off guard and they are facing a

lot of pressure from those on capitol hill, from within their own party, about concerns on using political capital that could cost them on other legislative agendas, including regulatory and tax reform. oliver: ok. kevin, thank you. a wealthyoming up, man jailed for correction. we go to the latest, live. this is bloomberg. ♪

♪ oliver: this is "bloomberg markets." scarlet: the former billionaire eike batista jailed on corruption charges. his head was shaved and he is currently in a jail. joining us from rio de janeiro

is david miller. what is interesting is that police put out a warrant for his arrest last week, but he was not in the country, he actually slipped past them. what happened? david: he left about 36 hours before, it is unclear if information was leaked, but he was out of the country when they raided his mansion. he was gone. his lawyer says he was in new york conducting business and from there is sort of became this question of, is he going to flee? today he made his way back. oliver: was it a matter of him trying to figure out what his move was? i guess, what is the news that came through that made him decide to come back? david: to begin with, he is also a german citizen and he allegedly went to new york on his german passport must other was questioned on whether he

would go to germany. there was talks on maybe he was negotiating conditions for his return, both his lawyer and police denied that was the case. one reason why he was negotiating terms for return was to avoid a common cellblock. scarlet: this is the man who was once brazil's richest man, then he became a negative billionaire with his net worth sank to more than $1 billion in debt. what is his business nowadays? david: right now his biggest endeavor is toothpaste. hydroxybrand that uses -- instead of fluoride. he claims it will be revolutionary. and also some offbeat ideas, we have done a story saying that he has gone into cattle cloning, viagra that dissolves under your

tongue, he has applied for a wind farm permits. mainhe toothpaste is the endeavor right now it seems. oliver: so let's talk about revolutionary, this is part of the sort of carwash investigations. within that, there has also been some pretty big new figures who have been going to jail, so how does this fit into the overall picture of the corrections investigated? david: this is the product of of theo offshoot investigation coming out of southern brazil. so this one specifically, he is accused of paying bribes to the former rio governor, who is currently in jail as well. and now, this is important because it shows carwash is still going and may have new offshoots in other states. when rio de janeiro hosted the olympics, there were many things

raising eyebrows. mrs. one of the first -- this is one of the first developments on a state level. scarlet: thank you. you can read the article on bloomberg.com. oliver: coming up, we speak with an advisor, the former chairman of the obama auto task force. how automakers will be responding to donald trump's policies. and we take a look at markets, a lot of red cross the screen. we are above the 30 day average. you can see the dow is down around 80 basis points. this is bloomberg. ♪

♪ oliver: it is 3:00 p.m. in new york and 8:00 p.m. in london. scarlet: welcome to "bloomberg markets." ♪

oliver: we are live from bloomberg world headquarters. we will be covering stories in washington, atlanta and london. here are the top stories we are following. market stocks slowly climbing since the u.s. election, but a reverse today after president trump's first full week in office. we will speak with steven rattner, a key figure from the obama administration about the last seven days. and in politics, we continue to call -- cover the fallout from the travel ban, the protests causing those airports to grind to a halt over the weekend. and donald trump is blaming the delta outage for the chaos. and bill gates and warren buffett sitting down to weigh in on immigration and the benefits of bringing in talent from around the world, in light of the executive orders. we will bring you highlights from that interview. and we will get a check of the markets. scarlet: it looks like we are

going to break the long streak of days without a 1% move, but we are not. at least, unless something changes in the last hour. earlier today, we saw the doubt down by 1%. we have not seen big swings like this, not since early december. it does look like it could be the biggest selloff since the election. julie: in a lot of different things going on today, we have the geopolitical uncertainty or some discomfort among investors with the latest executive order. been going onhas with commodities, a big part of the story. crude oil down 1% right now and jpmorgan raising questions today about sustainability of the opec production agreement, saying we could see prices around $58 a barrel for 2018, which is above where we are now. and if we are looking at the 10 worst performers, nine of them

are energy stocks. that is a big drag over all. what is interesting, if you look at the bullish wagers on oil, they are going out. take a look, we have this measure of the bullish bets by the hedge funds on oil, at a record and going back to the beginning of when we started looking at it. we have total production at the bottom and a downtick on the cuts, so we will see. we are also watching transportation stocks today on this travel ban that was enacted last week. the average is down more than 1% and american airlines and delta, lower. delta likely being affected by the outage over the weekend. and analysts at jpmorgan say that jetblue was trying for an increase, but competitors did not match. and the best performer of the s&p 500 today was, when i looked, i said what is this company?

it is a company that designs and manufactures components of x-ray imaging systems and it is buying a similar business in the process, so that is the best performer today, even as the current -- the company it was once a part of is down. scarlet: a check of the headlines. emma? emma: the president is defending his controversial clampdown on immigration, eigh -- the president says 325,000 were detained. two senators of his own party have criticized the move. think what john mccain and lindsey graham did is really a very good example of principled leadership and at moments like tested aboute is

whether they speak out on what they believe or whether they decide to accommodate. thosethe president called senators week on immigration. attorneyngton state's general is suing the administration over the ban, and announced the lawsuit today, becoming the first stage out to announce legal action against the administration or its policies. and the president will announce his candidate for the vacancy on the supreme court tomorrow night. he has narrowed his list the two judges. liveberg will have coverage tuesday at 8:00 p.m. in new york as the president announces his pick for the u.s. supreme court. that nominee will fill the vacancy created by antonin scalia.

an act of terrorism, that is how the prime minister of canada is describing sunday night's deadly shooting at a mosque in quebec city. six people were killed and over a dozen were wounded, five remain hospitalized in critical condition. police arrested two men, but then released one and is set only one is a suspect. donald trump has expressed his condolences to the canadian prime minister. and the former president, h w bush has been released from hospital. the 92-year-old is thankful for the prayers and kind messages during his stay at the hospital and will receive care from doctors and nurses. he is -- was being treated for pneumonia. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: thank you. back to president trump's policies. it is anything but business as usual.

bill ford and mark fields spoke out against the travel ban and said, "we do not support this policy or any other that is against our policies as a company." joining us is steven rattner, the chairman of willett advisors llc, and the former head of the presidential task force on the auto industry. is a majority owner of bloomberg. stayed quiet over the weekend and finally spoke up today in a statement. what is the fallout for ford, which has been called out for jobs in mexico by the president, when they disagree with the policy? foren: i am proud of ford speaking out. i think ceos are reluctant to get out in front for these issues, but i think that, i read larry summers' column over the

weekend and realized there is a time for everybody to speak out. oliver: with your experience in the auto industry and working with detroit and other automakers, what are the demographics of the area? there were protests industry, does this apply to fort with immigration -- ford with immigration? steven: i think it could be what scarlet was implying, ford has a big dog in the fight with mexico and tariffs, so i think it was courageous of them to speak out. michigan has its share of immigrants, but i do not think -- it is not new york city in terms of being a melting pot. d is a standup guy and they were doing what they thought is right. scarlet: some people have mentioned that detroit is known as the muslim capital of america, so maybe that

influences their positioning. and what is also interesting, the president has urged automakers to add more plants, and the timing is curious. if you come into the bloomberg, this shows the total auto manufacturing payrolls in the u.s. by administration, or by democratic or republican affiliation, president obama's tenure was this when the number of payrolls increased following the slide off from president bush's tenure. they have added jobs. this is not great timing. steven: in the sense of? jobs are now,d when they have added so many jobs. steven: that is correct. not just jobs, but also plans. the possibility of them building new plants from scratch in the u.s. at this moment is very low, so i think the president put himself out front on this. a lot of jobs were added over the last eight years, but as the

chart also shows, it is down from what did used to be. productivity and outsourcing and off shoring, the auto employment in this country is not going to go up dramatically in the future. oliver: when you look at the growth that has happened in the industry leading up to this point, and you look at how precisely donald trump has targeted these companies, is there any way the president can incentivize growth in the industry, in the manner in which he wants a u.s. driven? steven: you are not going to incentivize the kind of progress you want, company by company, else theb, somebody next day, that is not really by policy. there are policy ideas floating around, like the border i'm not sure it is a great idea, but there are policies that could create more jobs mother they are more macro -- jobs, but they are more macro

policies. and not hiding one by one with ceos. scarlet: speaking of that, this is what we are focused on with goldman sachs'reaction. does it matter? steven: my perception is, you do not want to be first. you do not want to be the only one, but he cannot fight everybody all the time and i think if every ceo in america spoke up and said, for example, that the muslim ban was simply against everything we stand for, he would not be able to fight all of them. so i do think it is a time for people to speak their mind. oliver: looking at the growth for the industry, there is difficulty to jumpstart something that has been jumpstarting for several years, he has picked in the auto industry as a battleground. he did campaign very hard on it

and talked about them a lot. if you wanted to get that growth in the industry, are there tax incentives or ways that you can try to bring those industries back without hurting the actual makers of the vehicles? steven: the conundrum, this is not about nafta, even if it did not exist, the terrorists -- tariffs would be in the 5% or 10% range, relatively small. the reason these jobs migrated to mexico and other low-cost, low wage places around the world is because these countries have gotten better at doing stuff. mexicans, the productivity is high and wage rates are still low and so it is competitive. we do not have a free-trade agreement with china and obviously china has produced huge amounts of exports. there is a fundamental shift going on in the world that donald trump is simply not going to be able to reverse and it is the fact that developing

countries are getting better at making stuff. scarlet: he signed in order that requires government agencies to new one.o -- for every as usual, we do not have much more detail other than what i've just said. this is the approach for now and businesses are left trying to figure out what to do. does that hold them back for making capital investments? steven: there is a huge amount of uncertainty at the moment and it will affect business. regulatory, i will come back to, but there is uncertainty around taxes, nobody knows what the policy will be going forward. i do not think it is fair to criticize the president for that because he has been in office for only two weeks. on the regulatory side, i think even the more liberal economists would say that we have gotten pretty close to being overregulated in the economy and there is a lot of stuff out there that should be pared back.

the devil will be in the details. will be really pull back the ones that are getting in the way, or the ones protecting workers and the environment and doing things we want regulation to do. scarlet: that will depend on how his cabinet secretaries interpret it. steven: andy has conservative cabinet secretaries -- and he has conservative cabinet secretaries. which is scary. scarlet: we will bring you live coverage of the president's pick for a supreme court nominee on tuesday. oliver: airline stocks falling today as investors worry about the travel ban leading to more restrictions on flights. we will have the latest on that, next. this is bloomberg. ♪

scarlet: we have breaking news. is facingmaceuticals antitrust investigations on the epipen practices. it received a request for information from the ftc and this is part of a preliminary investigation, and mylan pharmaceuticals says they have not done anything wrong to prevent the generic competition. this is to determine whether the product changes have gotten in the way of cheaper generic competition, especially for the epipen. so their shares are down as much as 3.2% on the news that it faces an antitrust investigation. and there is a request for information. oliver: if we finish trading, that will be the lowest in a couple months. going back to the effects of the travel ban as u.s. airline stocks stumbling today, the biggest drop, about 5%. and investors worried about the potential of retaliation from other countries.

so michael, start with whether or not the airlines are blind-sided about this, so what did they know about this on friday winning second quarter was signed -- order was signed? we are told there was a call on friday evening or night amongst the carriers. they were given some information about what was involved in the travel ban. that said, they were not included in -- clued in ahead of the executive order issued on friday. to some extent, they were blindsided, but they did have some word after it went into effect. ok, but at the same time we know that there is chaos at the airports, confusion and people did not know what to do. there were also protests. president trump in a tweet referred to the problem, the

congestion and the chaos, and he basically put the blame on the delta computer outages. he said only 109 were detained and held for questioning. big problems were caused by the computer outage, protesters, and who said thaty all is going well with very few problems. make america safe again. , haves a sense, delta they said anything? michael: they have not. i've been trying them all day. so far, they have not said anything. it is odd that the president would have done this, some of those protests happened on saturday, well in advance of the delta shut down of flights, which did not occur until 6:30 a.m. on sunday, so all of this took place before that incident. oliver: when you look at how the

airlines are assessing this, at least for 90 days and how big of a deal will it be for the stocks and investors of the companies as we see them selling off today? michael: i do not think it will be a huge deal. one analyst told me that there was a little too much exuberance or whatnot today, the investors getting ahead of themselves. these are not big countries for travel to the u.s. my none of the u.s. airline really fly to these countries, although they do pick up these passengers in connecting flights from europe. generally speaking, most analysts say that this will pass and leveler heads will prevail. ,carlet: ok, michael sasso thank you. we will be hearing more from the general -- ceo coming up on wednesday. and still ahead, the options inside.

trading as the fed gets ready to announce their decision on wednesday. from new york, this is bloomberg. ♪

oliver: we are looking at updates here on mylan. the stock is falling about 1.6%, paring some of the losses that it posted originally. it had dropped as much as 4% as we get reports that it is facing an antitrust investigation on epipen pricing. scarlet: it received requests for information, part of a preliminary investigation. mylan saying they have not done anything wrong to prevent generic competition. oliver: time for options inside with julie hyman. julie: thank you. joining me today is jim's do-gooder of mk holdings. we have seen after suppressed volatility, an uptick today in the vix. it is not a big one, it is still

at low levels, but does it signal any kind of return to more sustained volatility? jim: it may. keep in mind, where we closed on friday around 1050 or so, there has only been about 50 other closing readings below that level since the inception of vix, so we are extraordinarily low. it has popped up a little bit. again, we said this before, we look at the frequency of these events. august 2015, we did have some magnitude of shock every 4.5 months and that projects to mark a little bit, but -- julie: we are not one for one. jim: here we would look at the individual stocks before we rein it in for long-term volatility, that is a better way to start adding protections than to go out and buy the xx or the options on vix, you are playing for the low probability of it really turning into a profitable

hedge. julie: you are looking outside the world of stocks today, more at the rate universe. we have seen today the stocks pulling back a little bit with the buying of treasuries and rates coming down, but those have not really been going anywhere after the big push postelection. you are looking at tlt, which tracks the rates. and saying, maybe we will see the rates push up again. am i reading the notes right? jim: right. if they pull back, the rates probably catch a nice bid for safety. that said, looking over the longer term, we want to take information out of the listed options market and what it tells us, using ishares, and tlt, is that there were a big bearish positions built into december. december open interest reaching almost 2 million, the ratio was

significantly higher and investors turned around and took off the exposure. it went higher and charge -- treasury prices lower, so they were correct, but this means we need to reload on the short side. one thing to think about, the futures right now, when you look at january 2018 pricing, cooking and about - in about two rate hikes from the fed and the dot plot closer to 3. net spreads have broken above 2% for the past seven years. breaking even. so inflation expectations are rising and we think the yield can move up a little bit, even if you get 3% in the 10 year, we think it will correspond with something like 10% decline in the tlt. that is what we're playing for. julie: it is interesting, because it is wide in terms of the trading, 117-126.

am: you turn around and buy 117 or 110 spread and create that payoff. julie: thank you. scarlet: thank you. still ahead, we are following the markets closely today with a big selloff and the s&p 500 perhaps ready to break the streak of not moving more than 1%. right now, down 9/10 of a percent. it continues. coming up, we will speak with the chief u.s. market strategist at rbc capital markets. from new york, this is bloomberg. ♪

♪ joe: we are 30 minutes from the

close of trading here in the u.s. scarlet: u.s. stocks tumbling the dow jones at one point down almost 200 points. joe: the question is "what'd you miss?" scarlet: the truck rally hitting a speed bump. more gridlock in washington. the backlash continues. --sident trump's travel ban republican senator senators are even starting to push back. we will scare -- share exclusively from the former minnesota governor on the president's latest push. let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. theail: we're looking at worst decline from the major averag