Passing immigration laws by executive action, and the courts struck that down. I do think this is an important opportunity for those of us who care, not only about the people and about our Legal Immigration system that has benefited us all, but also are determined to eliminate and stop ilLegal Immigration along with the drugs and the harm that that causes. I do think this is a great opportunity. I hope we make the most of it. Withg from a border state 1200 miles of common border with mexico, my constituents in texas all understand the importance of Border Security and enforcement. At the same time, they are people with big hearts like you and the rest of us who want to do the right thing by these young adults who came here as children. Thank you very much. I have to tell you that as i walked into the room, i dont know if you heard the latest but the market is up about 150 points. We broke a very big barrier, 25,000. There were those who would say we would not break 25,000 by the end of the eighth year and we are in the 11th month. Have to be careful because as we go out, maybe it goes down. You always have to be careful. We did in fact break 25,000, very substantially break it. I guess our new number is 30,000. What it means is every time you see that number go up on wall street, it means jobs, success, 401 k s that are flourishing. I was in new york at an event recently, and i take a lot of pictures with police and firemen and military. One of the police man came up to me and said, i want to thank you, my 401 k is through the roof. My wife thinks i am a brilliant investor. He said he was up 39 . I said, you should be doing better. He said, i am up 39 in nine months and i have never seen anything like it. My wife and family are so happy. People with 401 k s, unless they are really having difficulties with life, they are doing really well. I may finish off with our new secretary who is just in a position, but i will tell you, respected by everybody. At a very good vote. Would you like to say anything . I want to thank you for your leadership on this issue, and i appreciate your support of women at dhs. They do have a very dangerous job. They put their lives in danger for all of us every day. I look forward to working with you and learning about your progress. Wall and theve a technology and personnel for that. Forward touch working with you and others in congress. You are going to break all of genital general kellys records. You have to break 78 . Thank you all very much. Thank you very much. Hopefully everything is going to work out really well. We want it to work out. The republicans want to see it work out really well. If we have support from the democrats, i think daca will be terrific. We have people that have been working on this issue for a long time. We really are at a point where i think we can do something spectacular for the people on the border, people coming through. He have to be careful because mikeis a drug epidemic on we have ever seen unlike we have ever seen before in this country. Frankly, i think a lot of democrats agree when they see what is happening, when they see the kind of problems at the border they really understand it. Whether they will vote that way is another situation, but they really understand it. Thank you all for being here. Have a great spirit going in the republican party. I think it can be bipartisan and i hope it will be. We can take care of a lot of problems. Take care of a lot of problems. It would be really nice to do it in a bipartisan way. Thank you all. He called me a great man last night and he obviously changed his tune. You. Ank you have been listening to President Trump. The occasion was a meeting with gop senators. Reiterating what the president said at the very end to a reporter who shouted a question about steve bannon, the president saying, he called me a great man last night so he obviously changed his tune very quick, of course on the scandal of the book that had been due to come out next week. The ostensible meeting was actually a meeting of gop senators during which they talked about immigration overhaul, the president telling reporters they are working on an immigration overhaul plan which they think could be bipartisan. It has to end chain migration and cancel the visa lottery. By chiefined washington correspondent kevin cirilli. We have to start with the juiciest bit first, the president saying that steve bannon has changed his tune. Does this blow over . Kevin unshaken, that was how a senior person who works with steve bannon told me last night, is what steve bannon is thinking right now, that he remains unshaken and will be operating as business as usual in his political apparatus. Earlier this morning, donald tweeting out about the criticism steve bannon has received from his own website. Who arewith folks frequently with this website who say the president is furious with the comments that steve bannon has made, on the record apparently, to michael waltrip. The president says he does not talk to bannon. What does that mean from a policy standpoint . Steve bannon is clearly on the outs and has perhaps nationalistic economic policy, is no longer someone the president is soliciting advice from. Shery this meeting was about Immigration Reform and the gop senators were there to talk about it. Where are we on those fronts . Kevin i spoke with a senior aide to one of the republicans who was at that eating with President Trump moments ago, meeting with President Trump moments ago, and he tells me republicans are united in the notion that there needs to be additional funding allocated along the u. S. Mexico border. Enforcement money on how these security measures and interior domestically are being advocated for, so they are united on that front. Inyou are watching outside, terms of whether this will shut down the government on january 19, they have to pass the partial government funding bill by january 19, we should note they are making the case from an Opioid Epidemic standpoint. Yesterday i spoke with a senior aide to a democrat, who says they are ready for a showdown and ready to shut down the government over that, because they feel this is an issue that needs to get resolved sooner rather than later. We should also note very quickly, silicon valleys tacking of getting this done in siding with the democrats, they have been on the forefront of this as well. Vonnie this Immigration Reform plan the president is working on, it cannot be tackled separately, can it . Kevin Mitch Mcconnell has said he thinks they could potentially separated off and kick the can down the road into march with regards to daca. You are right, everyone really, it is the consensus in the halls of congress that they would somehow have to get immigration done tied to this continuing resolution by january 19. As a result, it sets up a showdown for democrats and republicans, and this is really the first main opportunity that we have seen the president address immigration with since being elected in dealing with congress. He did take executive action that was widely criticized earlier in his term, through stephen miller, who again was aligned with steve bannon. Now he is having to deal with Senate Majority leader mcconnell and congress on immigration. Shery does this mean we could see another stopgap measure on the budget . Kevin i think we absolutely could, and in fact, some of the folks i was talking with yesterday on capitol hill told me they might see a threemonth extension in january. Once again, they will kick the can down the road. Vonnie chief washington correspondent kevin cirilli, thank you. Surging. S. Markets are along with the Global Market rally. Julie hyman is with us and we are halfway into the trading day. Julie it is another day of records. We have seen day increases for the major averages. Today, it is the dow that is the outperform her and the nasdaq is the underperformer. Financials are leading the pack if you look at the imap on the bloomberg, up by more than 1 , and they had a strong start to the year. Technology is still participating in the rally and the bank stocks are up. The Merrill Lynch tank stocks were at a record today. Real estate is falling as bond yields push higher. Goldman sachs saying that banks and Consumer Finance are set to outperform this year as the benefits of the tax overhaul become reflected in share prices and net interest margins. Fargo, andells bankamerica among the gains. Stocks, marijuana stocks are pulling back today. Canadian listed shares which have been rising in advance of and after the initiation of recreational legalization in california, are now pulling back. U. S. Attorney general Jeff Sessions set to revoke a memo that allowed the legalization of marijuana to spread across several u. S. States, most notably and recently and most largest, i should say, is california. Finally, another couple of declines are in the recent ipo market. Backand roku both pulling having to do with analyst commentary, cow when downgraded snap to underperforming saying buyers perform instagram is downr instagram, and roku after Morgan Stanley saying it was tough to justify. Vonnie lets check in on the bloomberg first word news. Mark that powerful storm battering the east coast of the United States has made travel go from bad to worse. Jfk airport is temporarily suspended flights due to snow and high wind thousands of flights elsewhere along the eastern seaboard have been canceled. American airlines has canceled all of its flights scheduled today at bostons Logan International airport. Lizard warnings are posted from North Carolina to maine. Wattepublican congressman attorney Jeff Sessions to resign. Sessions does not have control over the justice department. Call recent information leaks from fbi agents and doj officials, alarming, saying it is time for sessions to start managing in a spirit of transparency to bring all this improper behavior to light and stop further violations. Thousands of iranians rallied today in support of the government. Progovernment television described the rallies as an answer to rioters and supporters of the riot. That appeared to be a reference to President Trump who tweeted in support of antigovernment rallies. The president plans to send a delegation that includes family members to next months Winter Olympics in south korea. They say mr. Trump agreed with the south korean president on the phone that they would not hold annual military drills during the olympics. Day,l news 24 hours a powered by more than 2700 journalists and analysts in over 120 countries. I am mark cant or crumpton. This is bloomberg. Shery investors are keeping their chin up ahead of tomorrows jobs report. Major averages hitting alltime highs today. How long will it last . This is bloomberg. Shery this is bloomberg markets, i am shery ahn. Vonnie i am vonnie quinn. Optimism about the u. S. Labor market helping markets to todays highs, the dow passing 25,000 for the first time while the s p and nasdaq opened at alltime highs. Addedid private employers 250 thousand jobs in december and that is before tomorrows jobs report. To theiving more oomph anticipation. Lets bring in trials from john herrmann. Highfrequency data has been doing really well. Repricing oft a Interest Rate increase expectations . John it is remarkable, but that has lagged all the improvement over the last year or so. We think the economy will maintain this momentum through next year, this year, through 2019 into 2020, and we look for the fed to do three rate hikes this year, three the year after. The markets refused to get ahead of itself. Only price in two today this year, one ahead of that. s the feds outlook the feds outlook is not that optimistic. We think payroll growth will be better than expected. We think the really remarkable story over the next few years will be the unemployment rate. Fallodels tell us it will to 4. 1 then down to 3. 5 by the end next year, 3. 1 year after that and 2. 9 the first half of the next year. Vonnie you are kidding. John that is unbelievable. I think he will be hovering around 1. 8 , 1. 9 , 2 inflation. It will kind of look like the sweet spot, so from that standpoint, that sounds kind of goldilocksish. I hate to be associated with that characterization, but i think it will be good for us stocks. The yield curve should continue to flatten and we think possibly invert. 2019, the second half of but you still think Economic Growth will continue another three years after 2019 . John i think after 2019 we get about a yearandahalf. The other interesting thing as we look further out, 2020 will be a very contested president ial election. Leaving that part aside, there fromvery strong handoff the baby boom generation to the millennial generation starting in three and a half years, a major handoff. S 2009 and they will rapidly exit the first four to five years of the next decade. Millennials will get promoted and will move up from vp to md in three and a half years. Income,festyle, their they are going to see a major change. Shery how much of your forecast is being affected by the tax overhaul . John what it has added to our gdp numbers is only about 35 basis points, so we are already above the stream for this year gdp and next. Amount but not a great amount either. In version on the yield curve. Vonnie levitt. Love it. Our thanks to john herrmann. Still ahead, Winter Weather pummeling the northeastern u. S. Blizzard like conditions are snarling traffic and knocking out power. A Lasting Impact on commodities . This is bloomberg. Welcome back. The northeast is getting, by a snow bomb cyclone, sparking winter storm warnings and 13 eastern states. It looks really freezing out there. New york and new jersey have declared state of the, as they get battered by several inches of snow and heavy wind. The strengthening storm has already grounded more than 3000 flight and knocked out power in about 72,000 homes. Natural gas demand is skyrocketing. Say, i do not say this very often, but i am very happy to be at work and not out there. Vonnie it keeps you warm. , it isou look outside crazy. The wind and the snow, so im not surprised the natural gas is skyrocketing. The futures market has not really moved much, still kind of hovering around the three dollar range. Cash prices have gone up to about six dollars or seven dollars according to data from this morning. That tells us that the market perceives there is still quite a bit of supply left in the system , probably enough to carry us through this heating system. Vonnie if there is that much supply and suddenly a drop off, lets say the weather improves dramatically all of a sudden, then we will see a lot of pressure on those prices. Certainly on cash, we will see pressure on cash prices. Lets say we get a few more of these cold snaps, these intense cold spells. That could maybe lead to a situation where the market is not so confident about current supplies and the gas in storage. Shery we are also seeing some places around the eastern u. S. Without power right now, downed power lines. Will that be offset by higher electricity prices . Downed power lines and things like that are largely due to high wind speed associated with the storm. The volatility in the car markets, and power prices are pretty high. High power prices have other implications. It is good for nuclear companies. Vonnie how much is the trend that we will see more and more thanks to Global Warming or other climate changes . We cannot attribute one single weather event or a powerful storm to Global Warming. That being said, some Research Suggests there could be a link between the frequency of powerful hurricanes or storms, and Global Warming. Vonnie very diplomatically put. Thank you. Coming up, ignore the bad headlines swirling hedge funds. Is going to be here with his outlook for the Hedge Fund Industry for 2018. This is bloomberg. stephanie live from bloomberg World Headquarters in new york, scarlet stephanie vonnie quinn. Lets get a quick check, major averages. Above 25,000. Is milestone in one year. Now is beingight led by financial but Energy Stocks are also getting a boost. Is winter storm here threatening to send electricity prices and gas demand higher and we have positive data out of the u. S. Employment side with Companies Adding more workers to payroll. Up2 10 of 1 . Vonnie time to get to the bloomberg first word news. Mark thank you. Another development in the story of a white house behind the scenes book that has led President Trump denounce former strategist steve bannon. One of the presence lawyers is trying to stop publication of the book written bite Michael Wolff according to multiple reports. Lawyers have accused steve bannon of reaching a comprehension of breaching a agreement. Lity attorney general Jeff Sessions is expected to issue a memo today rescinding the obama youre a that allowed states to marijuana. In states where its legal, the department of justice will instead let federal prosecutors decide how aggressively to enforce federal law. A new study from the American Cancer Society says fewer americans are getting the disease and the cancer survival rate is rising. Drop in the mortality rate and 2015. 91 the decline and smoking across the country has been the biggest change. Improved medical care has also been a factor though wealth inequality has created gaps in death rates between racial groups. The french president will go to china next week hoping to strengthen commercial ties with the worlds secondlargest economy. It will be his first state visit to china since he won the election last year. He will meet with the chinese president on january 9 where talks are scheduled to focus on north korea, the f