Its time you for your morning reef. President trump will address the World Economic forum in davos. We will bring you that live. We get Growth Numbers for the fourth quarter. We will find out how much the u. S. Durable goods has done. Right now, lets get an update outside the Business World. Good morning. President trump wanted to fire special counsel robert mueller. Among hisd concerns top aides and closest supporters that he would be putting himself in legal jeopardy. The New York Times said he backed off after white House Counsel refused to order and threatened to quit. Calls it fake news. The president will offer a path to citizenship for 1. 8 million undocumented immigrants rot here as children. A return, the president once toy 5 billion trust fund to pay for the border wall. He would restrict family immigration and and the lottery system. The british economy and a challenging year with a pickup in growth. Gdp rose better than expected. 2018, the all of economy grew just 1. 8 . Thats the worst performance in five years. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Alix trump does davos. Bank ceos love him, george soros not so much. Cut ties to undo the nations selloff. Is it a threeputt . You said three p. Thanks for giving me credit. Join us is the chief. Bloomberg has been a davos all week. The president will talk this morning. Streetxecutive from wall has praised the president about what hes done on tax reform. We did find a different view. That is george soros. I consider the Trump Administration a danger to the world. As a temporary phenomenon. It will disappear in 2020 or even sooner. David from what weve seen so far, what audience will be greeting President Trump . It will be the latter. George soros is a major democratic fundraiser. Hes never been shy about expressing his views. The tenor of once happening in davos is bring it on, we love what you are doing. Hes going to get a receptive audience. Is he going to go on to trade . Im not sure jamie dimon would be as excited about that. There are people who claim that at its core, he is a globalist. Trumpet histo accomplishments, tax cuts, the stock market. Hes going to say what good for america is good for you and people are going to eat it up. I think along the lines of he took a photo of trump. Thats telling. There has been a more positive reception than what people were expecting. There were concerns and we may see people walk out of the speech. I do think generally the reception has been more positive. David hes going to have to fly back to washington. Hes got bob mueller waiting for him. He tried to fire mueller at one point and stepped back because his white House Counsel threatened to quit. Marty the newer times broke that story. It was matched quickly by the washington post, politico, bloomberg got clear confirmation. This is a problem for him. It plays back into the narrative is trying to obstruct justice. Alix what tapping with the dollar . This is a five day chart. You can see the mnuchin impact. He liked the weak dollar. It was good for exports. Brooke, if we are in a currency war situation, who wins that . Draghi you saw the comments, they had this agreement we are not going to have a competitive devaluation of currency. Thats why it was so jarring to see these comments. You cant fight where the fundamentals growing. Money is pouring into europe and japan, where the economies are more attractive than the u. S. Alix how do you attract foreign capital . Weaker dollar. Marty it doesnt work. Donald trump later on cnbc was pretty clear that he thinks the at itsshould be fundamental level based on what the strength of the economy is. He said he doesnt want to talk about it and shouldnt talk about it, which is the standard line you should take. David he is so aggressive on ,rade and balance of payments he is linking the dollar to trade issues. We can fix this trade thing in other way. Marty i dont think its a particularly well thought out strategy. I think its just the reactive comment by mnuchin. I think donald trump tried to walk that back. The World Leaders are correct. Shouldre countries that prevent this from happening. The other thing we are looking at is data at 830 a. M. This is the atlanta gdp. Its a little retroactive. Thats what is tracking for the fourth quarter. I find interesting is that scared toward exports. Im curious about the scenario. Brooke the weaker dollar would help u. S. Exports. Interesting to me is weve had Industrial Companies posting earnings. They are very optimistic. They are looking multinational eat for growth. 3m had solid growth in all of its geographic areas. They are optimistic on tax reform and where the economy is going. David i think we are wrapping up expectations on gdp. Saying. 9 . Fink marty i think thats possible. Donald trump is supposed to start at 8 00. We hear its only a 15 minute speech. He will be gone by the time the number comes out. Did i make that up . Marty i hadnt heard that. I believe it. Those are china like numbers. What are we expecting . , whichsts are saying 3 would be to quarters in a row. Brooke what is the benefit from tax cuts . Does it rev up the economy . Does it boost gdp . I think weve got to see how that plays out. Ceos are optimistic. Its been straight guidance across the board. Thats extremely unusual. David thank you so much. Coming up, were going to talk more about the dollar. The greenback has its worst start of the year since 1987. We will speak to the jpmorgan assets manager next. This is bloomberg. This is bloomberg daybreak. Dell technology is considering to go public again. They are to people, weighing options to boost funds, and raise including an ipo. They went private in 2013. The u. S. Slowdown of starbuck has gone global. Supportingeported to sales growth in all major regions. Off estimates. They fell in europe and africa. Fourthquarterd sales the rose 6 thanks to the demand for warehouse automation. It was better than expected. They make of right approach from jet engines to commercial security systems. That your bloomberg is this flash. Alix its been a tumultuous week for the dollar. On wednesday, secretary mnuchin said a weaker dollar was good for us as it relates to trade an opportunity. This not a concern at all. Then in an interview yesterday, mr. Trump said he may have been misunderstood it. Again becoming so strong that the dollar is going to get and i want to see a strong dollar. The dollar index is not paying much attention. It broke below 90. He comes to us today from brussels. Its good to see you. Vincent good morning. Alix are we seeing the u. S. Dollar being a of trade policy . Vincent you see the saynistration tried to there is no need to get it done actively. To theweaknesses related rate. Be pretty wellar over the last couple of years due to the fact that it was interesting from investors to consider the u. S. Yield curve. Today, hedging costs are very high as you know. Short weakness in the dollar. I would blame the hedging costs more than what the administration has said it. Alix we did see volatility pick up across the fx market. We did see the s p, as well. To we expect more fx Going Forward . Could that lead to in equities . Vincent more fx volatility seems clear. U. S. Is abuse for the i am convinced its a positive thing to have the dollar and the tailwind. This is different or the u. S. Economy. Its deftly positive for u. S. Profits. 4s in europe, we need to look at hedging. David when we look at the strength, what should we be looking at . Is it trade . Is it purchasing . What should we look at . Based on trade weighted, its not that low historically. Vincent on the longterm, ive been a big believer in being level. That is overvalued. It is longterm. It is of more importance in the short term. Definitely, the dollar on the longterm should we can. We look at the Capital Market isumption that the dollar expensive versus the level. Even more so, the growth differential between the u. S. And other countries in the world like europe. In otheris clearly regions like europe. There is definitely more ground to gain in europe and more flows converging to the region at the moment. There is some weakness to the dollar. David you expect further volatility in fx. For investors in europe and the United States, should they be hedging right now . Vincent when looking at the dollar on the year basis, we are expecting a weaker dollar by the end of the year. The dollar might be oversold. It is still forget a huge interestrate differential between the u. S. And europe. At it never been so wide. In theory, its always been a support for the currency with a high level of interest rate. Coming into the last days, there is pressure on the dollar. We could see that in the short term. Orwill probably have an ecb doj start likely to be more hawkish. More supportovide to currencies like the euro in the end. Alix if youre looking at a dollar that is too expensive, what equity market do you want to buy for . We see new emerging markets. Vincent that is the sweet spot at the moment. Not only because of the dollar weakness but the underlying strength. We see that emerging markets are growing again, showing growth versus d block markets. I have made several adjustments in terms of correcting the imbalances. These were in focus back in 2013. Emerging markets have increased Interest Rates to quote cope with the weakness of the currency. There is still room to accommodate. , we we look at inflation in emergingflation markets in anticipation of increases in the coming months. If there is a region where we can use the term goldilocks, it is emerging markets. Have several countries with em assets. We have seen significant flows from emerging markets, which was in debt last year. We are continuing as we enter 2018. Alix great stuff. Thank you very much. Its good to see you. Coming up, tell technology is considering going public again. We will have the details next. This is bloomberg. David michael dell is considering it going public again and raising cash to pay down debt. With us is kyle quarter. Explain to us what advantage do they have . Them a mechanism to pay down that massive debt. In 2017. A python they have 46 billion in debt. 2 Interest Rates are billion. The deductibility of interest, these transactions mean the cost is going up. David they went public, this is one of the alternatives. How much of that that can they turn down . they made an offer of 13 billion last year. Alix we were talking about debt. ,f we look at the bloomberg this shows the debt distribution. 2021 was the time when it really hurts. Nonetheless, it is significant for them. Do you think investors want to buy the ipo . Its going to buy this giant chunk of debt. Tile its one of the options being considered. Creates and updates the company. It could give them some breathing room. Given is getting killed. David what does this do for michael dell . He needed the flexibility when you dont have to have public reports to shareholders. Could he have done the deal if he had been public of the time . Kyl it wouldve been extremely difficult for him to do the deal. Deals ive done as many as i need to i have the consolidation i want. I can go public again against the money. Kyle we think there are other options. That. They could buy that could help the issue. Kyle it gives you much more cash flow. Not bringing the settlement to the market. David when it michael came back, he had a grand strategy of where he was going. Is it working . Do we have a sense of its playing out the way he hoped . Kyle this is still a profitable company. They are doubling down on servers. It hasnt come through to the extent they would of liked. Youve got the cost. David instead of going public, just sell stuff. Is or something they could sell . Kyle they say it could be worth 7 billion. There is sin that could be pushed out as well. We have a huge pc business. Idea. I have no this is a grand vision. Alix now its an issue. I wonder if he regrets it. He remains. Alix thank you very much. Kyle porter is joining us. Coming up, nafta negotiations in a crucial phase. We are going to speak to antonio garza. Next. This is bloomberg. Alix we have a rally in the futures market. European stocks are inching higher. The dax is relatively flat. This is the why. You see the yield up by one basis point. Its a selloff here in the u. S. Lets take a look with happening in the bond market. 264 on the 10 year. We have breached that to 63 level he always watches. It is a broader, weaker dollar story. Thats been the theme of the year, and it continues. Also sterling is getting a nice boost after the gdp came in at better than estimated. Curtis feeling good about the dollar weakness. Lets get headlines outside the Business World. In the next hour, President Trump speaks of the World Economic forum. He will tell the global elite that his agenda will be good not just for the u. S. , but for the world. He will call on the International Community to work together. There is a report that President Trump back down after ordering his staff to fire robert mueller. According to people familiar with the matter, his top aides are concerned that such an action would put them in legal jeopardy. The New York Times said he backed off after the white House Counsel refused the order and threatened to quit. The president calls it fake news. A fire in the hospital has killed 37 people in south korea. The fire again in the emergency room and spread to the upper floors. The cause is not known. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Alix thank you so much. Negotiators for the u. S. , canada, and mexico continue talks in montreal. The fate of the trade pact is up in the air. We are joined by Michael Mckee. He joins us from montreal. What do you hear on the ground . Mike good morning from an icy cold montreal. People are hoping there is a flaw in the trade negotiations thanks to was happening in davos. The Canadian Foreign minister met with the u. S. Counterpart yesterday, presenting creative ways to get around some of the more contractible problems in the talks. According to the canadian side, the u. S. Representative did not reject them out of hand. Progressat passes for in these talks. We are looking at the automotive side, where the u. S. Estimated higher content. The canadians and mexicans like the idea. Things are inhose north america. They calculate the amount of content in cars. The u. S. Might like that idea. When does the u. S. Delegation arrived . Back andy will travel check in with their governments over the weekend. They are due here on monday for the final day of talks. What we hear from them could determine whether or not the treaty goes forward. Onotiators here are working a lot of different topics. There are 30 chapters in the nafta agreement. They are making progress on Digital Commerce and telecommunications. The mixed messages coming out of those talks. The mexican negotiator said we are making some good progress, but stakeholders briefed by the canadian negotiation said there is no progress at all. Its hard to tell its happening. We are looking at to those principles and what progress has been made. Alix we will hear from President Trump and up 45 minutes. Its great to see you. David mexicos cheap nafta it negotiator expressed hope, saying we are advancing and having good discussions and good technical products progress. The discussion continues great we welcome antonio garza, the former ambassador. He now works in mexico as counsel. Welcome back to the program, mr. Ambassador. Us what you are hearing in mexico city. Maybe starting to hear things are moving forward. Antonio the talks have become more constructive. No one had any illusions going in that it would be easy. There was a sense that after you woulde or six, get into the red zone, these last 20 yards would be the hard yards and thats what were seeing. Its interesting, the previous segment talked about flexibility. I dont know this flexibility but an openness to discussion about characterization of certain content around the rules of origin it, which have been a sticking point. I think they will get there if they start focusing on a regional content as opposed to National Content and the value each country brings to the manufacturing. Areasgo down the list of that have been problematic, there is more movement on the sunset clause. There have been proposals that allow for countries to opt out. Rise in19, that may terms of difficulty, be a red line for the canadians particularly in light of recent activity from the u. S. On antidumping. Im encouraged. I think there is movement in the right direction, but no illusions of these last yards will be the hard ones. If they get ad sensible deal together, how does it relate to the balance of trade . Thats what the president always talks about. We have a chart about that. Our trade deficit is really going up. , will that a deal affect the balance of trade . The balance of trade deficit with mexico is relatively small in terms of the overall deficit. 60 and 70is between billion with mexico. I think if the agreement is renegotiated and there are new chapters, if you look at the overall deficit if you integrate energy into the agreement, there is a significant surplus with mexico. We are a net exporter to mexico of energy. If you take it in its totality and you modernize it and add chapters such as energy, ecommerce, i think you will see the deficit start to shrink. You will see our ability in north america to be far more effective as a platform at the rest of the world. In terms of the economics, it would be good and strategically it would be good for north america and the rest of the world. David if things really went south and they did not work out, there are some real losses. We hear about this from agricultural states. This is how big the exports are to canada and mexico. It would be substantial loss for the farmers. The Agricultural Community construct up very clearly in support of nafta. Inre was some disappointment the midwest and the Agricultural Center in the wake of