Washington correspondent Kevin Cirilli with the latest. Kevin, let me set with you. We heard the playback of President Trump meeting with those legislators legislate legislators to what were the highlights . Kevin it was remarkable to see President Trump me it meeting for one hour a Bipartisan Group of lawmakers as democrats making their case they want to see brock obamas daca Program Extended as part of the january 19 the deadline. Lawmakers must past in order to avert a government shutdown. President trump drying that political line in the sand and saying he wants to see an increased level of security along the u. S. And mexico border, particularly when it comes to the socalled wall. However, although these comments note he didould appear to suggest he might be open to some type of deal with democrats in order to avert the government shutdown. Shery craig, the president saying the representative Bob Goodlatte of virginia will submit an immigration bill. What is the timeline in comp in Congress Look like . Craig the deadline is a deadline. January 19 is coming. I do think there may be legislation from good luck and other. Others. I think it will come down to a deal. Topdonald trump and the democrats in congress find a way to trade the Dreamer Program which has children that were brought here illegally, but are here now legally. Can they come up with a deal on that . I think the important thing that trump said is he seemed to suggest he would take two things off the table for the first round. Those things are the chain migration and the visa lottery. Visa lottery is they put a bunch of names in the hat, and they pull out a name. If trump is able to but those aside, i think that improves the chances that we will avoid a government shutdown. Trump said it in the heat of the moment. We will wait for the tweets and followup statements. That would be a very Significant Development in terms of avoiding a shutdown, if trump is willing to go that way. David that would be a big move. Other same time, we did see dick Durbin Company number two democrat in the senate, saying we do care about security. We are willing to do things about security. Was that the democrats stay democrats taking a step toward him . The numbers you hea not make te democrats say the word wall. That is how washington works. Democrats dont think Illegal Immigrants should go across the border, they also dont think there should be a 100 foot wall. If they find a way to finesse that language, increased security, they could probably come to a deal. Oft was durbins way signaling that democrats are willing to play ball. They need to have something they can take back to the Democratic Base that has no interest in giving donald trump his wall. Shery kevin, President Trump saying that while could cost less than 18 billion in the next decade and that it could be built faster than expected . Said, he hasraig tried to make the case that the wall would include things like drones as well as an increase in funding and interior domestic programs in order to bolster some of the Security Force in the United States. Craig is right. Thehe and of the day, democrats can have no interest in handing him any type of political victory, particularly on the wall, we should note that the president seemingly backing off of some of the dust lottery visa programs. It is something that is music to Silicon Valleys years. The Business Community has really been advocating for these types of visa programs and has been out in full force defending, especially the Silicon Valley tech startups, defending president obamas daca program. Clearly, the Business Community having a case to make for this debate. It sounds like we are close to a deal. Are we passed it . Craig lets not get ahead of ourselves. I think the path is lay down. If Chuck Schumer and donald trump nancy pelosi want to walk on it, it is there for them. For security,ney they get an agreement from trump that he is allowing these dreamers, these kids brought here young, fullgrown adults now, they get to stay. I think we are a long way from the shutdown. There is a lot of chewing and frowning that will happen between now and then. Most of washington thinks that as shutdown dilemmas go, this does not seem like a tricky one. It just requires a political willingness on both sides to come together. Shery kevin, this coming at a busy time for the president. He could be attending the World Economic forum. Kevin absolutely. Busy morning at the white house. Bloomberg news confirming that President Trump expected to go to davos. What is interesting as last year, he skipped davos, opting sending one member of his administration to go to davos. That was anthony scaramucci. Now, it up. The president making that reversal. Ive been talking with sources who say it will be fascinating to see the reception that President Trump gets at davos because it would seemingly be completely opposite of the policies he has advocated for, of bilaterala host trade agreements. And of course on environmental, global agreements as well. A really busy and interesting time at the and of the month ahead. Shery definitely. Something to watch. Kevin, thank you so much. And craig gordon, our Washington Bureau chief. Lets get a check of the markets. We are seeing u. S. Stocks adding to all time highs. Abigail doolittle has a latest periodic and we have the s p 500 and the nasdaq up for the sixth day in a row. That is the longest winning streak for the s p 500 since late october. Optimism is in the air. It is confirmed by the fact that the 10 year yield higher for a fourth in a in a row. Up six basis point. Not an insignificant amount. Haven bonds are selling off as stocks are being bought. Will it continue . This is a tremendous chart. 454 one. It is a longterm chart. Up at top, we are looking at the s p 500 in relation to its moving average. That is an indication of momentum. We have the s p 500 well above the 200 day moving average. That in andconnect of itself may suggest that a pullback is likely. 81 of the s p 500 members are above that 200 day moving average. You could make the case that the s p 500 is over, and trading at levels of a the last 10 years gore it is has tended to back down. Suggesting a pullback could be ahead. Head of Technical Analysis thinks a pullback for other reasons, are telling her that the market is overbought. And that a pullback could be on the way. As for movers on the day, not winning, chip. Stocks being led by the microsoft trading higher p oliver is on the headline that microsoft is saying that fixing the intel chip flaw could serve slow certain servers. Especially corporate servers. That is a reminder of that negative news for intel. This might be one of the stories of the day. Check out codec, up 40 . Former camerathe giant is getting into the cryptocurrency space. They will be launching kodac coin, that will empower photographers and agencies. The mania keeps going. David good for them. That is great. Thank you from a, abigail. Coming up, budget battles on capitol hill. The Republican Party is divided over spending levels we will david david brett brett. Live from new york, this is bloomberg. Omberg. David this is Bloomberg Markets balance of power. Im david westin. Shery lets get a check of a bloomberg first word news. Mark crumpton has more. Joe former arizona sheriff arpaio has announced he plans to run for the u. S. Senate seat now held by jeff lake. The 85yearold is a republican and a close ally of President Trumps. He tweeted today he is seeking to support the president s agenda in his mission to make America Great again. He was spared a possible jail sentence last week when the president last year, excuse me, when the president pardoned for defying a judges order in an immigration case. The European Union will host a meeting with the Foreign Ministers of iran, france, germany, and the United Kingdom this week to discuss the state of a landmark Nuclear Agreement with of the iran. Iranians. The United States has said it would container scrapping they would consider scrapping the deal. Been more progress in the first highlevel negotiations between the two koreas in more than two years. After a 11 hours of discussions, north korea and south korea agreed to hold military talks and further dialogue. Jonguns kim regime said it would send people for the olympics. The rocket launch did everything right come even though the classified military satellite it was carrying is now missing. The rockets at first phase completed its job and landed. The portion carrying the satellite appears to have crashed into the sea after it malfunctioned while being boosted into orbit. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Shery thank you. Tigris is closing in on the due date for this years budget while the republicans remain split over spending levels and legislative ironies. One of a prospects and what should we expect to find inside . We welcome congressman dave brat , he is a member of the House Budget Committee in the House Freedom caucus and joins us from capitol hill. Congressman, thank you so much for your time. We heard President Trump who grouphis meeting with a of bipartisan lawmakers. He seemed to be softening a little bit on his key demands on chain migration, and also the visa lottery. What conditions do the House Freedom caucus members need to see in order for you to be on board with a daca deal . Rep. Brat we have been on board with the budget deal. It two crs with all republican votes. The speaker, paul ryan, promised the daca deal would be a standalone deal. Decided in would be our conference by a majority of republicans. In terms of process, that is the deal. We have a good bill coming out today. That is by chairman goodlatte. The fundamental pieces. Daca is 800,000 people. By chain migration coming you multiply and about four, you are talking about 3 Million People, 4 Million People legalized. The latest data from last year is we allowed in 1. 8 million additional legal and illegal folks. That is five or 6 Million People competing with american jobs. At the same time, we will do welfare reform we are trying to get ablebodied folks off of the welfare rolls because it is better for them. We want to end the poverty trap. It is backward policy to be 10 million million, folks, displacing American Workers. When you displace American Workers, where do they go . They go onto the welfare rolls and set of the economy. We have to that vicious cycle into a positive, Virtuous Cycle going upward. We want basic fixes. If you and tame migration, and you put in place even if i focuses on legal employment, those will go a long way to solving the problems. I think the president is still pretty much on board, that those big pieces have to be there because he ran on that issue and the American People overwhelmingly want a solution that is in the best interest of American Workers. David i understand you would like these to be separate, the refunding of the government from daca. Your friends on the democratic side do not share that view. Lets focus on daca. Put aside chain migration, the lottery, could you agree today for those a hundred thousand people you described to say, ok, you can work your way to a green card, or do you regard that amnesty regard that as amnesty . Bigger thant is that issue. The fundamental problem with that is there is a billion people on the planet 8 billion people on the planet. They all have their own gifts, it is not about the people, if you put up a green light, and say, daca, once you get in, the American People are really generous. In everyone million year. We want to do the right things for kids. If you dont put policies in place, what will the rest of the world say . It is are ready happening. We are having a surge of the border as we speak. It is not a matter of the one issue, you have to solve the whole problem. David that means you do not want the 800,000 tuesday, either . Rep. Brat i did not put it that way. I said there is a rational solution to be had which puts all of it together into a coherent rational story. Good luck has been working on these bills for decades. Paul ryan decided to bring all five to the 4 four. It is not just about daca. It is about a rational immigration policy that puts American Workers first. You have to have a rational system. The Unemployment Rate appears to be low. But it is not. It is only low because 20 Million People have left the workforce because they could not find any work. It does not seem you want to solve that problem where the massive inflow on immigration. You have to first skill folks up in continuing education you have to solve the welfare problem. Then you have a whole solution that would be good for the american worker. Shery you keep coming back to welfare reform. There seems to be no appetite, at least in the senate or white house, to pursue this. Does that mean the has a wrap up House Republicans will be going ahead with entitlement reform . Actually, they tend is changing on that. Mitch mcconnell was hesitant. The word is he is warming up to it. President trump is warming up to welfare reform. If you put it properly, ablebodied, it is not about taking welfare. It is about education and training and getting people back in the workforce. How anyone can be opposed to helping people get back into the workforce supporting their families, moving up the ladder, having a better life as a result, i dont know how you could oppose that. David looking at the republican agenda more broadly, lets talk about infrastructure. Are you willing to appropriate more money for infrastructure . Are concerned about deficit. Are you going to overcome it when it comes to infrastructure . I think we have to overcome it somehow systematically. I used to work at the state level in virginia, you have bridges that are substandard, you have roads that always need repair and updates. There is fundamental issues we have to address. , the entitlement mandatory piece is 75 of the budget. It used to be 25 . That is crowding out the rest of the budget, military, infrastructure, education, etc. If you dont manage that an solve that problem, we try to do that on a bipartisan basis. When you try to do that, sometimes the democrats do commercial of grandma and clips etc. It is not helpful to solving longrange problems when medicare and Social Security are insolvent in 2034. That is a kid or garner i get a kindergartner right now will graduate from college in 2034. This is not theoretical. You have to fix that if you want to solve the other problems. Shery we dont have much time left. I want to get to this question. You defeated majority leader eric cantor in 2014, running on an antiestablishment campaign. How much of this movement been heard by the by President Trump in steve bannon . Rep. Brat it has been heard loud and clear. That has continued. Bernie all the way through trump is the same thing. The people in michigan and pennsylvania, the midwest, havent had a wage increase and 30 240 years. 40 years. We are starting to pay more attention. The folks back home will hold us accountable if we dont make their lives better economically. I think that is the number one issue. Congressman dave brat, thank you so much for being with us. Rep. Brat happy new year. David happy new year to you, sir. We will be back shortly. Members of congress are coming out and speaking about their meeting that they came out with President Trump. Live from new york, this is bloomberg. New york, this is bloomberg. David defying orders. What was built as a refresh of theresa mays cabinet is looking more like disarray with senior ministers refusing to follow script. Of u. K. Me the head political coverage for bloomberg news. She joins us by telephone. Where is this today . Yesterday did not look pretty. Are they straightening out today . Quite as highot of stakes. Ofwas a whole discussion junior roles. It did go smoothly. There was an interesting appointment. Ardentthe most brexiteers in the upandcoming tory with the network. Wastheresa may did today give a ministerial role into the department in charge of brexit. It was an interesting move because essentially were bringing someone into the fold with the idea that the better shery ali what is next for Prime Minister may as she battles to keep her political legacy after this complicated set of events right now . I think the risk of overstating what a disaster it was, it was certainly an embarrassment. The lesson is that theresa may sort of has momentum, or she can look strong like she did before she decided the election. The campaign is a disaster. Similarly, she was going into the new year with a few wins.