Been i thinkhas relatively straightforward and he is not in saying looking for a physical barrier across the 2000 miles of border. I thinkinally looks will not be that big a deal as long as he gets the funding. How will this play out come november . Marty says he has questions the lets assume. Only take that off the table in terms of political fight coming up in november . Absolutely. And you know, how frustrating Democratic Base is with Chuck Schumer and how the progressive activist community with whether they are it is greatly going to impact the 2018 midterms. When you look at centrist democrats, senators mark warner, the forefront of negotiations with republicans as well, and they are saying very different things, the cast of caramel the progressives and the movement are saying. Implications of that from a market perspective really set the stage for certainty and posted 2018e see midterm elections. Whether or not democrats take control or not, it has earned much a lot of implications as well. How inclined are americans planning the gop and the president for what we are seeing in congress and in washington now . Pulls show a majority of americans blame republicans. Not as many blaming the president himself but words come back and bites donald trump. He said in 2013 obama owned that close down. Field re that he was fearful he fearful he would own it. Away. Er is many months the shutdown will be a distant memory. There is a whole host of other issues that could arise. It could be a very bad shape come november. The funding is february 8, is that correct . What youre watching as lawmakers close to the senate. Resolution is in the house of representatives. It goes into the president s desk. Keeping the government funded 8, the february president is set to get his second state of the Union Address early next week in which she will lay out his case for the next 8, the president year and then, come march 1, that is they looming deadline on the issue of daca. Now. Is not that far from get ready, it is just the appetizer. On friday, the gop did not have the 51 votes necessary to pass the spending bill. This also contributed to leading to the shutdown. Is the house in order at the moment . Kevin i would suggest on the thee of tax reform, and on issue of keeping the government open, you have seen them united. Daca could divide and we do not know now. When he looked back at Public Public comments in the reporting we have done on the issue of daca, you did see clear divide here and you had people in the more conservative factions and the Republican Party really equating daca. It had other republicans who disagree with that and think it has to be addressed and this has to be done. You saw public statements. We will talk in just a few short minutes later in the hour. So we just do not know but in the past, it has been. On februaryfunding 8 but there will not be a vote later until march 1 here at if i am a democrat, how do i know whether to vote for a further extension of funding because i daca, presumably. You are right, we have to go through the whole issue of trust. , and if theytion are proceeding in good faith, democrats may have covered the extension. If donald trump himself suggests daca, presumably. He will not go for a deal negotiated, this could all break down again. It could be deja vu all over again. Stick around marty, chief washington correspondent correspondent kevin. We are waiting for a vote on federal government funding. We are headed to the senate vote on Senate Funding until february 8. This is bloomberg. Were waiting for a vote in the senate to keep the government shut down were waiting for the vote and will bring it bring it to you as it happens. On the senate side, first off, give us your perspective what can you do to advance the story and tell us what is going on . What happened is Senate Democrats relented in funding the government. Holding up most of them in pursuit of a solution for 800,000 or so young people brought to the country illegally. What they got is a commitment that it is his intention to move to that issue, to the legislation on that issue without prejudging which gets the vote. There is no deal by february 8 to have it resolved by then, democrats, substantively substantively, the key thing to know is the deal is not a deal with the house of representatives. The legislation is gone today for many years now. Spkr. Ryan clear to many members a number of sources, that the house will not be bound by any. There has been a long day to go between now and getting any kind of deal placating democrats. Convinced andnot are accessible. We need to see another fit another standoff. Is that the move in congress who House Republicans are House Democrats feel that they have not actually got much out of actually not letting the government shut down for the past three days . Democrats realize they got far less than they wanted. Commitment or really a substantive deal which includes legal status for dreamers who would be subject to deportation starting in early march. Democrats know commitment they y little of what they wanted but they try to remain optimistic about this assurance from mcconnell. A number of democrats i spoke to said the key is to have an bill, as many as 70 or 75 that will pressure the house of representatives to move forward on the issue. A lot of contentious issues will do aought up, what to familybased immigration and what conservatives like to call chain migration. A lot of things to be determined. That sounds right. Thank you. Were watching a highstakes game of poker on capitol hill. Kevin is with one of the players at the table, the poker game. Thank you. Now, immigration. You advocated spkr. Ryan that they think about last year. Describe to me what will happen with daca. Lets look to see what happens. For three days, they shut down the government for political purposes. The American People have said , open up theugh government, and that is why you see a change of heart. Happy what will happen . I am from california and this is a very important issue. Wheno make sure folks are devising the president , your response . Who are are children brought to the country through no fault of their own. We should not send them out of the country. We need to make sure they are taken care of. Made made their case known on this. Admit the case you just made as well. Democratic lawmakers questioning why Chuck Schumer made that with leader mcconnell. Should democrats trust leader willnell when he says they take up daca . Doit is a big issue and i not believe Mitch Mcconnell would have gone on the floor of the senate and said to the American Public we will take this issue up. I have all the confidence in the world that he will. When folks suggest that president had not been negotiating enough, do you agree with that or disagree . Agree at all. The president wants to me sure we have a solution to daca and he is committed to making sure we have a resolution. Will he be more inclined from your point of view or the folks who argue amnesty . We will look at what the more and weative folks want will come to a comprehensive solution. It will be a solution both sides can live with. The comment for the from the congresswoman we have heard thehe said point blank on senate floor, he believes there is a path forward on the issue of daca with moderate republicans and centrist republicans, making a case that this this community has made. Should the president take that course of action or try to play political rescue referee with republicans . Security. To have for we have to make sure the borders are secure. That is a fundamental difference now. Republicans want to make sure borders are secure. Im not sure our friends on the other side of the aisle think it. S that high of a priority we will have to leave it there. Here . Ill go right over they will go to the house and get the repeal. Thank you very much, congresswoman. Thats you in new york. Back to you in new york. Thank you. We will see as the senate pens with the government democrats voted to resume torques resume talks. Next, discussed german chancellors at forming a government or live from new york, this is bloomberg. Will bring you breaking news us and as it happens to the bill says they will keep it open only until february 8. We turn to germany. On sunday, democrats voted to go ahead with negotiations for a possible coalition with chancellor Angela Merkels democrats. Paves the way for a possible majority in the government for the First Time Since they held he comes today from los angeles, mr. Ambassador, good to have you. Welcome back. You really have a sense of this have int necessarily the United States. How big a step forward was this . On the one hand, they still have negotiations of us could fall apart. Only have more negotiations but the democrats have said they want to put the ultimate Coalition Agreement of two 400 40,000 Party Members for a vote once it is fully negotiated. This was a crucial step forward. If they have not approved this at the party conference, we would have him back to other merkel having a minority government, and she would have created a new coalition for every piece of legislation, or new elections per polls are showing new elections would prematurely help the alternative for deutschland, the xena phobic party. Yesterday big deal but the vote was a lot closer than has been the case in the past. How problematic, young and leftist members of the party be . The problem is a whole group and the party, almost a civil war happening with democrats. You have a group led by the leader of the social democrats who basically says, i do not care how good a deal the Coalition Agreement is. We do not want to be in the coalition with the christian democrat communion. Every time we do, we tend to do worse in the elections. The minority and really redefine ourselves and establish ourselves. It is tough for those who want to go forward and for the sake of stability of germany and the stability of the eu, to have a coalition, it is hard for them to negotiate with the group because basically no deal will be good enough for them. Vote. Was 56 of the interestingly, a few days ago, a poll was in germany of people who voted for the social lastratic party in the septembers, and 56 of them over the course of the next few weeks. You said the youngsters would like to last septembers, and 56 of them said they would like to go forward with the grand coalition. That will hopefully hold minori. They didnt do well last time. Go to thei have seen polls sugt they will do a lot worse this time around. Theyat is the irony, that would do a lot worse. The reason the Jamaica Coalition fell apart in november was in part because the liberals, the free democrats who were also a Previous Coalition partner of afters, finally got back being voted out in 2013, and did not want to be a part of the coalition for the same reason. The leader of that basically took a position in negotiations it would be a most impossible for merkel to get full agreement on, so he could step out. It is almost like the attitude is we do not mind doing worse in in this in an ensuing elections as long as we can identify ourselves differently as part of the opposition. It is a little bit of a sacrifice now for a victory tomorrow i suppose. This political stalemate has been going on for over four months. How damaging has it been not only for germany but also for progressing and moving along h other european issues . It has basically put everything on hold or the German Economy is robust. It is moving along. Government is still functioning. It has not closed down. It is still functioning under the coalition but obviously no initiatives, no new initiatives, are going forward. The biggest issue, champagne corks were popping in brussels the biggestcause issue is the eu and the idea is once the government gets formed because martin schulz, the leader of social democrats and ongoing merkel, are very strong, probe proeuropean, and they will join forces with president macron of france and this will ultimately strengthen the eu it is not damaging in the sense that cannot be recovered from but basically it is putting on hold issues that really need to be addressed. Like it negotiations. There is that little detail. Take us through the negotiations that are about to happen. Fordifficult will it be Angela Merkel asserted in assuming the people vote for it . People should look at it like this i think. What has been agreed to is sort of like the headline and lead paragraph in the newspaper on different topics and different subject matters. You have now got to get to the details of actually, what did headlines in the lead graph mean when you get into the leaves a little bit . Was pushback from social democrats on issues Like Health Care and pensions. The whole question about migrants being able to have family reunification, bringing in other family members, those are sticky issues that still remain. Tot will be interesting is see whether enough can be in effect given up by the christian democrats in these negotiations to allow the social democrats to say hey, we have not changed the headline but if you look at the details, we got a pretty good deal here. That is the thing to watch, in getting into the weeds of the negotiations, the social democrats have enough to go back to the membership on and say, it is a good deal and you ought to vote for it. Expecting chancellor merkel to give her first speech at the World Economic forum in three years one President Trump is also attending. Fireworks . Not think there will be fireworks but i do think it will be interesting. Ive talked with a number of friends who are very senior on merkels staff and team. The merkeltrump relationship is a little better than what people might think. Obviously, on issue after issue, there are major disagreements. On an interpersonal level, they get along pretty well. There may be fireworks on some issues, but by and large, i would not be looking for that she wants to focus on getting the government set and that is what her focus will be. Is interesting. Thank you, former u. S. Ambassador to germany. Of course we are once again waiting for the senate vote on the bill to reopen the government. This is bloomberg. We use our phones and computers the same way these days. So why do we pay to have a phone connected when were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And ask how to get a 150 prepaid card when you buy a new lg x charge. Its a new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Continue to wait that vote on reopening the government. As we await the sending the senate vote, the dow is up three. 3 . It is now to record high for major averages. And telecom leading the gains. Investors are focused on the busy week of earnings. 80 this week and the nasdaq gaining. Lets get to mark crumpton. Isk crumpton the senate moving to end a three day shutdown of the government. Congress is given a most three weeks to solve disputes over spending and emigration that led to the shutdown. The president and i have not spoken in the white house refuses to and gauge over the weekend. The dealmaking president sat on the sidelines. It would be my intention to take up legislation in the daca and address border security, and related issues as well as disaster relief, health care, and other important matters. It is also expected to pass. The European Union to step up political efforts in the middle east. Foreign ministers and brussels, they expressed disappointment in , called the swift recognition and recommitted to negotiations with israel. A spanish judge refused to ask ish authorities to address who arrived in copenhagen today. It is the first outside elgin him since he fled there to avoid a spanish probe for his unsuccessful succession bid for catalonia in october. The judge does not want him arrested overseas. Announced billion dollars in yemen. Forced to receive fuel, food and medicine. The outbreak represented about half of what was demanded finally you by the u. N. They called the situation in yemen in yemen the worst humanitarian crisis in the world. 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. David Larry Summers has written , piece for the Financial Times on the eve of his scheduled visit to davos. He talked about his concerns about geopolitical risk. The bond market is pricing in that risk, and reports that President Trump may be cooling off on wilbur ross. We started by asking whether treasury yields will keep on rising. Hard to say. If markets become more alarmed, treasuries are where they go. As many as confident observers that you folks are going to rise sharp we from here. Scenarios, a scenario where the economy strongly whereow markets stay call him and there is no geopolitical stir disturbance. Scenario, you see the fed tighten more now that it is priced into the market. I suspect you will see a meaningful upward move in long rates. There is also a scenario where some uncertainties come more into focus. If that were to materialize, you could see equity markets selloff and in that scenario, 10 year yields would meaningfully move downward from here. What is the potential low for a 10 year yield in that scenario . I think if we have, i guess the way i would approach that is to say recessions come every so often. The odds on an annual basis of the economy moving into a recession are somewhere in the range of 20 and perhaps slightly lower. If wed be very surprised saw a recession where 10 year yields did not fall by over 100 basis points. Time in theat some next halfdozen years, we will see tenyear rates make it below 1. 5. Bly again, it could easily go the before hand. Some finally, come back to the piece you wrote this morning. You want to show that the president is a reliable and protectable partner as you put it. You talked about the team around him being confident he could handle an economic downturn. Wilbur ross maybe on the out. A powerful secretary. I do not know if that is true and you do not know. Are the people around him contributing to uncertainty being communicated . Yes, i think in some ways they are, but, something i have learned, whether in business or it isernment, or whether in universities, leaders tend to subordinates they deserve and the subordinates that they want. For think responsibility the contours of Economic Policy and issues of credibility that really rests with the president. I think you would find, i suspect, his team better able to implement his desires if he were and predictable in those desires. As i wrote in the piece, it seems very easy to go on and on in a lot of different ways. But i think the president was elected president because he tapped into some legitimate that the United States needed to look inwards as well help desk altruistically out to support a great global system , that there were areas of economic diplomacy in which the United States needed to be more atertive than it had been and theyt in the past, were very Many Americans living in the country who had needed to ben and more focused on concern. I think people are prepared to respond to the message and the concerns if their lead in the study unpredictable, reasonable way. That is the hope i have for the president s year. That was Larry Summers, former president of harvard. Coming up, Vice President pences middle east trip. Will it help or hinder, coming up next. Plus, still waiting on the senate vote to reimplement the federal government. A hurdle in the last hour trading white house has pushed back until 2 00 p. M. Eastern. Live from new york, this is bloomberg. This is bloomberg markets. David Vice President mike pence is in israel as part of the middle east trip. Earlier today, he said the uniteddavid Vice President mikt year. Take us through the possible ramifications. International affairs and studies. Trouble in the tribe. Good to have you here. Mike pence has gone to jerusalem. He said we will move the embassy in 2019. Is this a moving up . When the president announced it, some speculated it would take a while to do it. It seems like it is going fast. The Trump Administration indicated it would take years. Impart thesuggests recognition on the fact of the Trump Administration that a peace plan is in taxes and that therefore does not have any consequences moving. To the facteaction that it is not the upgrade the outcry a lot anticipated. It was not the explosion people anticipated. There was not the kind of Mass Violence but overwhelmingly, the reaction was negative. This has been reiterated in meetings with jordan. Beeninly, the reaction has negative particularly among the palestinian authority. It is more than many people thought it would. Many strong ties. How is he perceived in the region . He is perceived primarily as a spokesperson for the evangelical community particularly when it comes to israel. He is long outspoken when it ands to the support criticisms with the palestinian authority. Of all the figures of the Trump Administration to come right now, he is in many ways the most polarizing precisely because he is the most closely associated with the with jerusalem. In his joint press conference, he said this was an opportunity for broaddrick deletion in the middle east. How does his arrival in the region as well as President Trump off his decision to move jerusalem, the capital of israel, more toward peace talks and moving toward progress there . Despite what Vice President pence was saying, it is hard to see how in any way the decision about jerusalem could involve y completely refused clearly what this has done is aligned the Trump Administration so closely as to make any presumption of the Peace Process almost impossible. Is there anyone in position to step in and pick up the baton, and is the two state solution dead . For the time being, there is no alternative for the United States trying to broker a resolution. Whether a two state solution is dead, ultimately, it has been declared dead many times. It is ultimately still possible to put forward a two state solution and influence one if political will is on both sides. There is no political will among palestinians or among the israelis. The government is also opposed to a two state solution. For the time being and the foreseeable future, i think it will not happen here ultimately, whether in the years time the two state solution remains the only viable solution to this long and tragic and better conflict. Had this discussion and we never mentioned Jared Kushner. E was really in charge of this is he actively working on a solution for the palestinian solution . Notublicly, he has withdrawn from working on this. The Trump Administration is working on proposing a peace plan in the coming year. The palestinian reaction to trumps recognition of jerusalem, given dynamics in israel now where the israeli , increasingly undermining a two state solution on the ground and also no ation, there is nothing for Jared Kushner to succeed. They go around making noises if only to appease arab allies for whom it is important to see the Trump Administration engage in the Peace Process, trying to work toward a solution even if no progress is going to be made. Thank you for your time today. It is time for the stock of the hour. Shares are trading higher as earnings topped estimates all thanks to the air t stepping up. Joining us with Maurice Taylor riggs. Love earnings day. Yes. It is great. It is helping them on the top and bottom lines. The quarterly increase in sales slowly gaining, we are about 3 billion. When we look at the three properties, the newest is the palace. Coming in with 55 million older number one, properties, e and established to of course, las vegas is trailing at number three. It is playing out in the stock market as well. We have charted here at my blue. Al in that is beating the Bloomberg Intelligence stocks and then the general like we have in the s p 500. How important is the market right blue. Now . A tough quarter, and that would slowly start to turn around as demand comes back. And it is a pretax measure given we are comparing different regimes in asia and china. Alone, doing very well. It was 42 just over a year ago. Slowly starting to see the shift. That is really interesting. Thank you. Still ahead, we are heading into the danger zone. Of talkshe six rounds handling the threats . We will talk next. This is bloomberg. Were waiting on the official vote. The white house has pushed back its press briefing until 2 00 eastern. And if we get the vote extend funding until february 8, we will come back to the same issue of getting protection for the dreamers. We believe it will funded until february 8. It will depend on whether democrats see progress on daca. We could see deja vu again. Now,other key issue another six rounds of nafta negotiations, will he wont he . Negotiations are underway. We draw from President Trump. An Economic Advisor told bloomberg we are reaching the danger danger zone because if there is no progress, the white frustrated,become throughout their hands, and say they are calling out. Frustrated, speakingt theirmike, last weeks to the ambassador who said if president does give the sixmonth withdrawal notice, it would be off the table and would not negotiate. What are we seeing in terms of tone . There is conflicting reports. Nd canada said they would stay it is a question of whether you believe the president would be issuing a with drawn notice to drive negotiations forward or if thes serious about ending agreement. That judgment will have to be made at the time. The United States facing off over a number of issues. A lotans have never of these issues. They go through thought to talk about and allotted stake for all three sides. U. S. Businesses have been lobbying the president heavily to not withdraw. We will see what kind of project progress gets made. There are questions about who is really calling the shots. We saw wilbur ross will have this on trade. The president has been pretty angry with ross because he has not been fast enough. The real concern came over china that he made a strong case against the chinese when the u. S. Dialogue and the two places were meeting. So there are questions the trade policy in the white house, the trade has presented into the role. President luence the in the direction of taking a hard line on nafta. Mentioned import pros within 90 days. So many things need to be decided. It is not anymore about looking into the issues with china and mexico and canada. It is about making a decision. They will impose sanctions or let it slide. If the president doesnt believe that is the case, take the unilateral actions, like china, then you see what they do. The siu have a lot of industries, which would be very up set very upset. Farmers are putting an arm is pressure on the administration not to step in. They have already put restrictions on soybean imports hurting soybean sales. Mexico and canada by a lot of our products. The real question is about that. I look at the president of the chamber of commerce and he was strong on demanding the tax cut the past and strong on opposing the administration on trade. This this is on the side that works for them and trade works for them. Ofthat is what i hear out the administration. Muchmckee, thank you very for being here. We are awaiting a senate vote on the bill to keep the government open at least until february 8. A key hurdle, the White House Press briefing is scheduled for the top of the hour at 2 00 in the afternoon. Will keep you updated on what is to come. We have the senate floor right now, the vote could come anytime now. Funding could be extended until february 8. Even if it happens, still made a deal on immigration and we will keep you updated. Everything, live in new york in new york, this is bloomberg. Its 2 00 p. M. In new york. 11 00 a. M. In San Francisco and 7 00 p. M. In london. I am scarlett fu, and i am julie hyman. Welcome in to bloomberg markets. We are live in bloomberg World Headquarters in new york. Over the next hour, here are the top stories we are covering on the bloomberg and from around the world. Budget break through, the Senate Clears a way to reopen the government after three days the we will bring you live kurkjian of the white house news briefing due to begin in a few minutes. And a pair of multibillion dollar pharma deals. And u. B. S. Leaves investors wanting more. The Swiss Banking giant set less Ambitious Goals and investors anticipated. U. S. Markets close in two hours time. We were not really trading on Government Shutdown concerns, but now that it looks like the shutdown is ending, we are getting a boost. Yes, record highs for the three major