The primary focus of u. S. National security. Record terry mathis says the u. S. Military must strengthen as he described the u. S. Eroded. Face threats from indigenous powers, nations that do seek to create a world consistent with their authoritarian models, pursuing Veto Authority over other nations decisions. Department Defense Strategy report released today at oh to these remarks, calling for increased and sustained investment in the military. Coalition talks have been started with Angela Merkels brought block. Party leaders are predicting a tight vote. Former caps on president n puigdemont said new technologies would allow him to govern from belgium. He has been there for nearly three months, avoiding arrest in spain over catalonias illegal secession attempt. Spains Central Government has vowed to block his reinstatement. In australia, a drone was sent out to sea to drop a flotation device for two teenagers who were caught in a riptide. Officials described it as the worlds first rescue of its kind. The teens were about a mile and a half from the lifeguards, who were about to start training for these very situations with the new drones, which were equipped with a camera and rescue gear. The drone reached this winners in just 70 seconds. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton, this is bloomberg. Julia, scarlet . Scarlet we have some breaking news across the bloomberg right now. The president of the travel ban is getting a review from the u. S. Supreme court. They will review the ruling that has said the president overstepped power. The high will begin hearing arguments in april on the trump travel ban. This follows the San Francisco ninth Circuit Court in late december dealing a blow to that travel ban. Julia and april feels like a really long time away. Scarlet first things first. Julia exactly. President trump has canceled his trip to florida this afternoon and his meeting with Senate Minority leader Chuck Schumer at the white house, to see if there is a chance to avoid a Government Shutdown at midnight tonight. Earlier today, both sides defend their positions. The president is actively working right now to try to prevent a shutdown. I will contend to you that it is dramatically different to what president obama was doing in 2013. I hope the president will join us. If you will, we can solve this problem. If you stands on the sidelines, we cannot. I think we can find common ground. That is what the American People expect. We should give them nothing less. Joining me now is dan collins, executive Vice President at ml sell msl group. He worked for many years as a senior congressional budget aid. You have been saying if a solution was going to be pretty hard to come by, both sides have emotional issues here. The dreamers, a solution there. On the republican side, the mexican wall. What is the likelihood that you think President Trump and Chuck Schumer can reach a solution here . Field and solution will not happen tonight. There is not enough time to get it done. The only thing that was possible as if there was a delay or two week resolution to keep the government open, but i have been saying 5050 at best that there is not disruption of government activity this weekend. Scarlet soy might have a shutdown over the weekend. Is this something the president wants . Over the past 24 hours, i think things have changed. This might work for everyone politically. For the trump administration, they might be able to say look, i did not give in to the excessive demands for the dreamers. The democrats could say look, we were not willing to sacrifice our stance on immigration or domestic spending. So a shortterm shutdown might work in everyones favor. And over the weekend, most people wont even notice. Scarlet but what happens on monday when everyone comes back to work and needs to come up with something so the story does not get out of hand . To monday andts there is not some sort of solution, i would expect this is going to last all through next week. That is still not problem economically. It is emotionally an embarrassment that the market should be worried about in terms of longterm impact, but i would bet we have to get through another week or so so everyone thinks they can claim victory on this and have the right to come up with even a shortterm compromise. Julia how do both claim victory on this . That is how you meet some kind of longerterm solution here, particularly where things like immigration are concerned. If we look at the details here, the jury have agreed to the demands regarding the children help insurance program, for example. What does the gop needs to give to break the deadlock . A difference here between what the gop needs and what donald trump needs. It looks to me as if donald trump will need something that sounds, looks, feels like the wall. And the between Mexico United states. Even if it is not a complete wall, but something that looks like it is moving forward, that is what trump will need. Republicans will need something that postpones any action on , and democrats will need something that gives them some movement on daca. That is where the real emotional issue is. That is where the real fight will be. It has nothing to do with the budget, even though it is on the budget bill. Scarlet lets say there is a shutdown, either for the weekend or one week. What kind of backlash will there be . Does it reflect badly on anyone in any way . Does their basis care . , bothfor the basis democrats and republicans, and also for donald trump, the shutdown might look like a campaign rally. Over the weekend, members of congress from either side of the aisle are going to be able to go back to their can situate sensei look, i was willing to fight till the end for you constituents and say look, i was willing to fight until the end with you. After two weeks, this will start to have an impact locally with cars everything to from cars to government contractors, to proposals not being able to make it to government agencies, but the Lasting Impact will be on financial markets. If the president and congress cannot agree on a basic housekeeping document like the budget, what happens when they have to consider the debt dealing in march . That will send some chills down the spines of traders everywhere . Julia when . The investors have got so used to this brinkmanship now, that when they see this chaos going on in d. C. , they go whatever, they will sort it out in the end. What point should investors look at this and say actually, this is fundamentally dysfunctional and we need to react here . Stan i would argue that they already think that. Julia when do they need to react then . Stan in terms of this situation, it will probably take about two weeks before people say enough, this is different. We do not see the light at the end of the tunnel. Whatever saying you want to use. But as i said a second ago, the real problems are going to come when it looks like the debt dealing might be threatened. That is the middle of march sometime, maybe the beginning of april. That is the one that could have a direct and Immediate Impact on administration. Scarlet we know the president has postponed his plans to depart for florida until something is resolved with this spending bill, and we know he has called Chuck Schumer to the white house and they are meeting at the moment. Mick mulvaney was saying earlier that the president is actively trying to prevent a shutdown. Take us into what that means. How is he actively preventing a shutdown . Stan he is not actively preventing a shutdown, he is actively looking like he might be preventing a shutdown. Resulting in much of the same way he is postponing his departure to maralago, because the optics would have been terrible. But i would find it hard to believe the president could cut a deal directly oneonone with Chuck Schumer without checking in with other senators like tom cotton and lindsey graham. In that case, there is nothing that the president can agree to immediately. And we are running out of time. There is only about 10 hours left before the shutdown begins. Scarlet and even if he does agree with something to Chuck Schumer, he might change his mind later on when they bring others back in. Ollender, joining us from washington. Julia back to our breaking news, President Trumps travel ban is getting reviewed by the Supreme Court. Usg, first off, explain to if this is a surprise . Greg this is not a surprise. Up against a Lower Court Ruling that said he did not have the power to enact this travel ban in place under the federal immigration laws. It would have been surprising if the Supreme Court had not agreed to take it up. We should get a ruling by jim, they have they have fast tracked this, so we should get a ruling by june. The two sides will file their briefs, but the Supreme Court is fairly familiar with these issues already. In a slightly different form, a couple times when the court was asked to intervene on an emergency basis, the court let the travel ban go into effect. At least at that level, a majority of the court was not that concerned that the president might be violating either the immigration laws or the constitution. Have already you said, we have seen a number of tweets and they have heard arguments already. How different are we expecting these arguments to be and the ultimate result here . Greg this will be the first time that the court has directly look at the merits of the arguments here, so they have not directly said that the travel ban either is or is not constitutional and have not directly said whether the president has power under the federal immigration laws. That can change things a little bit. We will hear from them individually what their concerns are about this. And minds changed sometimes, so there is no guarantee of how this will come out. Hr, thank you sto so much. And this on the headline at the president s travel ban will be getting a review by the Supreme Court in april. Scarlet and why big plans are building for the Kushner Company in times square. Julia i think pain was the right word. Scarlet this is bloomberg. Scarlet this is bloomberg markets. Im scarlet fu. Im julia chatterley. It is time for a look at some of the biggest business stories in the news right now. Facebook will not bid for the National Football league thursday night package next season, according to someone familiar. The social networking giant has spent the last two years buying. Treaming rights for big sports the next round of nafta talks will begin january 21. Mexicos finance minister was in canada to promote trade relations this week. He spoke to bloomberg tv about the trade agreements impact. For mexico for mexico, nafta has had a huge impact. It has changed the economy since it took place in 1994, radically. We used to export 40 billion a year, now we export 400 billion. Amount. T a similar julia the finance minister also said mexico is committed to keeping nafta a trilateral deal. That is your business flash update. I feel like everyone is getting a bit frustrated or sick of everyone else here and losing patience, but we have had conflicting voices from those we have spoken to about this. Mexicans are saying the differences here are narrowing. Scarlet and they can come to some agreement. Julia and the canadians, of course, who you can argue have more reason to stand their ground on this point. Scarlet especially because they will be hosting the next round of talks and need to appear tough. So there is a homefield disadvantage, maybe . Julia and meanwhile, President Trump is calling nafta a bad joke and reaffirming his plans to build a wall with mexico. Scarlet back in 2015, Kushner Companies bought a six floor retail space and air near times square ft. 206 million. Jared kushner was leading the company at the time, and was hoping it would become a popular attraction for many tourists to visit new york city, but it has not worked out that way. Caleb, all the plans for retail space near that location have fallen through organ delayed. Delayed. N what happened . It is an interesting scenario, when they bought it in 2015, it was mostly empty. Over the course of 2016, they filled it up. National geographic is in the basement for an experiential thing, and a miniature manhattan exhibit you can go visit. I fear he was already there hisfieri was already there, restaurant closed in december, uer another restaurant was most to be there supposed to be there in april. Thea so of the closures, deals that did not come through in terms of tenants, how much rent have they lost a bet 24 million . Caleb that is hard to peg down. A chunk of that. Todd english pulled out of another venue in chelsea market. They say they will open their, but they have not yet. They hadin december, been two months behind on rent. They say they are current now the owner of the miniature manhattan. Scarlet 200 Million Dollars worth of Interest Payments annually look like it will be a tough one. Julia new york prosecutors are looking into this to find out what happened. Talk about that and how frequently these things happen, where you have juggling with anyway, even the you have sold the bonds, raised money, etc. Caleb when you are turning around property like this, it is rocky with people coming as people going. That is not particularly unusual, but when this debt was late 2016vestors and 2017, it was described as being 100 occupied. Those were the assumptions people were shown when they bought into it. Scarlet that prosecutors subpoenaed Deutsche Bank to find out what happened. What are they looking for . Caleb we do not know. We note Deutsche Bank has been subpoenaed for those documents and that is about all we know. Julia what beyond this happens now . We have talked a lot about some of the struggles the kushners have had in trying to find tenants. Scarlet and other buildings. Julia and none of the tenants have Credit Ratings either, which there are a lot of reasons for investors to look at this and go guys, hang on. Caleb in some ways, it is more risky than your typical mall, but retail is broadly going through troubled as well. They made it interesting that on these experiential tenants. You are not there is a shop as you are to see some things, go to your Favorite Chef of the restaurant, and it will be interesting to see how it all turns out. Julia but it is a great location. Scarlet it is always down to location, location, location. Julia absolutely. Still ahead, adp slumps in its public debut. Why investors are confused about the Home Security company. We hear from the ceo next. From new york, this is bloomberg. Scarlet this is bloomberg markets. Im scarlet fu. Julia im julia chatterley. Shares of adt are falling after the company went public on the New York Stock Exchange earlier. Owned by a cop they are owned by Apollo Global management and earned less money than expected in their ipo. E spoke to adt ceo tim wall i think the cash for the business will really be what drives the investors. Over time, i think this will be a great investment for people to look at. And what made them price a little bit below what you felt the company was value and what your bankers said the company was valued at . This was new for us. Im coming out of a family company, and am honored to be here representing adt. We are not in this for a day trade kind of thing, this is a longterm play. I think when we get good performance, people will love what we do. You had a better year last year than the previous year. Your bottom line was better. How do you turn that around . We have a chance to get back in the commercial space, which adt has a long history of. Thewe introduced things for cyber site, including security outside the home. You are getting in the smart Home Security business. Are a lot of there players there. Howdy you differentiate yourself . 14,000 different players in the space today. What we do matters. If you have an emergency and need someone in seconds, you can call adt and talk to a live person. We are a leader in this space. What you say to investors that are a little bit skeptical or concerned to getting into such heavily laden by that company . I think they will want to see the cash flow in blue improve. I think it will be happy with the result the employees deliver for us. Apollo is still very involved. To have brought this to market today, but 80 owned by apollo. Their input will be Going Forward . They have their own Investment Committee and will look at that Going Forward. What you imagine it will tell do . You to can improve our customer service, and keep growing our commercial business. That is what they will tell us to do. Julia adt ceo tim wall speaking earlier on bloomberg markets. And as far as the talks in d. C. , attempts to try and avert the shutdown. Chuck schumer and President Trump finishing their discussion in the last few moments. No comments made to the press at this point. Schumer scarlet schumer left the white house, so we will see if there are any headlines or updates. Aming up, oils post for steep loss. The commodities closes next. This is bloomberg. Scarlet from a frigid bloomberg World Headquarters in midtown manhattan, this is bloomberg market. Im scarlet fu. Commodity markets closing for the week, and oil declining by 1 actually, it has come back a little bit her