Including dreamers, make was a threat to the rest of the country. Duty in thismp my chamber is to defend americans. To protect their safety, their andlies, their communities, their right to an American Dream because americans are dreamers too. David we welcome back larry from the university of virginia, larry, will come back to the program, and take us into the might of the president and what he is trying to do here. The president said he wants to reach across the aisle on immigration but he up the ante it is not the dreamers we have to worry about the rest of the country. I think the whole presentation prior to the statement telling the media the speech was about National Unity faintpartisanship was a there probably isnt any hope for unity or bipartisanship. Other than a few words tossed in here and there without substance that meant nothing out of dont think there was anything unifying about the speech on immigration or anything else. It was particularly divisive. David you have terrible stories of this gang and parents and daughters were killed, and it touched her heartstrings. Does that give the president a ground . Political high it gives him high ground with his base, and that is what this is all about. That was the hidden purpose of his speech that wasnt articulated in advance. Trump rationally, and his advisers realized there is virtually no chance of trump expanding his coalition. There are going to be democrats supporting him in the war of congress, and independents for the most part have decided against him. Including in november, when congress is on the ballot, is getting the base enthused enough to have a disproportionate turnout. In 2016 tot occurred put him in the white house, that is what happened with trump. Shery it is the house that jack jfk, about the life of and delivering the democratic response, which adjudicative it what did you think of it . Think it is great to see someone below the age of 55 representing the Democratic Party. The image of the Democratic Party to the front runners of the 2020 democratic nominations is frankly a nursing home. At least they have a young democrat, there actually are young democrats. I thought he did reasonably well. Young enough to be in my classroom to tell you the truth. A wholet his speech as was pretty good, and he represented the democratic philosophy. Let me predict flatly from someone who predicted the kennedys for years, this young man is going places and will be a contender in the future. Not the next time or time after that, but late 20 20s and 2030, Something Like that. Shery so many gop lawmakers retiring. Saw more than 40 house gop members and five republican senators leaving this election cycle. Themuch does this boost democrats chances to take over the house and maybe even the senate . In the house it doesnt hurt, but if you look at districts good luck to the democrats. I dont see a democrat to win their. Alabama and other races of late, it is too high a mountain and too many seats on the ballots across the country that are available to the democrats. Yet to be careful to not take the total number of retirees and say they are all leaving because theyre going to lose. Otherf them are going for reasons, but on the whole, i dont think anything changed last night that would transform the prediction that november will be a democratic year. We dont know how democratic. David put aside democrats versus republicans, lets talk about extreme as his moderate. With all of these retirements and people stepping down, is it likely we will move to the senate where the house of the present us hasnt been for a long time, or could it exacerbate a movement to the left or right . Wellanything, i think move towards very liberal for democrats and very conservative for republicans. When you get incumbents who have havein for a while and you central liberals, it will be replaced in their primaries i somebody who is further to the right or further to the left, so i think you put your finger on something. The fact we have new people coming in doesnt mean much. Meet the new boss, same as the old boss, even more conservative or liberal. David lets come back to this year before november, given the weight the president appears to be moving forward, are we going to get anything done in congress . For are is still room relatively modest agreement, compromise on immigration. Im not giving up on that. It is not going to be these radio schemes that you hear from schemes. S grandiose the democrats dont want to give trump a win, and that is the formula for defeat among other things that are coming up before congress. Larry, at theou university of virginia joining us. Lets get a check of the markets, and we are seeing a selloff of equities halted, but the bond arc its continues. At least paused, if not halted. A rebound from the two days of selling, not recouping the losses, even yesterday or the past two days. We are seeing a strength and earnings, and some we noticed as well, if you take at the vick in particular, it shows you the vix versus the future, and at times over the past year, when you saw a spike in the vick versus futures, you saw stocks selloff and then rebound. Likewise over the past couple of sessions, perhaps we could be seeing a bottoming equal. Perhaps we have to see if that emerges. Part of that meeting into todays session is ecommerce in particular. And is ahead of earnings, not only are the stocks up but they are trading at records. Closing at 20 have percent, and alibaba before the opening bell, and amazon after the close tomorrow a lot of king up of earnings related news to come particularly with technology. And then finally turning to bonds and the set up going into the final fed meeting for janet yellen. Here the back skate the fed funds target rate and blue here, we have talked about the flattening of the yield curve as we continue to see the 10year move higher. We still have the flattening happening, the tenure at its highest in almost four years. David many thanks, julie. Coming up, President Trump has manufacturing a priority in his white house. Next. This is bloomberg. A check of the bloomberg first world news. Mark white house says President Trump has been fully briefed on this mornings crash involving a train carrying republican lawmakers to a policy retreat. Theres reports of at least one fatality when the train struck a garbage truck in charlottesville, virginia. Family members were also on the train. Sarah sanders released a statement which said there are no serious injuries among members of congress or their staff. The train was en route the green bar resort in west virginia. Gowdy, chairman of the Oversight Committee is not seeking reelection, he released a statement saying that he will not be seeking any other political or elected office but rather will be returning to the justice system. Prosecutor federal and led a Panel Investigating the 2012 terrorist attack in libya. It brings to 64 members of congress opting not to seek reelection. That number includes 46 republicans. Government prosecutors have decided not to retry new jersey senator bob menendez on corruption charges after a judge threw out some of the counts last week. The first trial of menendez and his eye doctor ended in a hung jury. Menendez was charged with trading his political influence for gifts and Campaign Donations from a for former longtime friend. To keept trumps move Guantanamo Bay open the director of law and policy called the detention facility a stain on americas reputation. This is a disgrace. People have been detained for over a decade without any prospect of any fair trial. And now President Trump is proposing to increase that number. Mark President Trump signed an executive order to keep the prison opened while reexamining the military policy on the tension. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. President t night, trump said the state of the union is strong and the first thing he cited as evidence of that strength is that since the election we have created 2. 4 million new jobs including 200,000 new jobs in manufacturing. More oned manufacturing the largest Manufacturing Association in the United States, and mr. Timmins has said that the president has made 2017 the year of manufacturing. Welcome to bloomberg. Explain to us what the president did to make 2017 the year of the manufacturer. It is the change of direction and we have an administration that wants to see manufacturing succeed and they are willing to make sure that government is a partner where the then antagonists. Have seen the recent tax bill passed, which really is rocket fuel for the economy and certainly rocket fuel for manufacturers who want to invest and hire new workers. Now we turn our attention to infrastructure investments, so we are excited about the path forward. David lets talk about the indicators the president invoked 200,000 new jobs, and if you look at the chart, but they came down a long way. They have a long way to go before they catch back up again. You see a world in which we employ many people in manufacturing as we did in 2017 . We have ways to go. We do have ways to go, but i am a huge fan of manufacturing employment because as we mentioned, we are turning attention to making american manufacturers more competitive. That means more investment and more job creation. Our own survey shows that, we do and itrterly survey showed a 95 percent optimistic outlook of manufacturers. That is the highest level in has been in our 20 year history, two thirds of manufacturing says theyre going to invest, and over half are going to raise wages and benefits. Measure is how effective those people are, and our study saying we are slowing the growth in productivity rates. What is going on in productivity of may fracturing of manufacturing . You see the infusion of technology and robotics and artificial intelligence. As new technologies entered the workforce you see fluctuations and ecb increases and a slowing down. You Continual Growth see big increases and slowing down. More jobs in and manufacturing really is the lifeblood of any successful economy. This is good news for america. David lets talk about the life blood pumping and humans should and you mentioned infrastructure. There seems to be a big divide not whether we should do infrastructure or how we should do it. You have hopes that this year democrats and republicans will come together . Lets look back a year ago. We could have said the same thing about tax reform. So many people said there is no way we could get tax reform done, and i will the mid, tax reform was accomplished in a very partisan way because of various processes and procedures on capitol hill. Infrastructure has bipartisanship board support. The administration has decided quite often and laid out a number of different Funding Options for infrastructure improvements. We have to accept the fact that this is going to be expensive. We have to pay for it, but if you look at the cost for manufacturers and the general public, manufacturers are being penalized by 70 billion a year because of our crumbling roads. Course of the next three years star going to be penalized for over 200 billion because of infrastructure failures at our airports. This is an investment we have to see for americas Business Climate but obviously for individuals was spent literally millions of hours in small traffic on the roads. Coming back to a bipartisan approach, they have to get democrats to go with them. Whether republicans are saying 200 billion over 10 years it is just fine, but. Democrats are saying it is not enough. Who is going to move to whom . I think they are dead wrong, the president last night put a marker down. I was proud to see him do this, 1. 5 trillion. That is the first time i have heard that number and i thought it is great look leadership to say that we have a problem and we have to solve it. Were going to be in our congressional districts and state to urge lawmakers to come together for a robust solution. We have advocated for a trillion dollars, but if the president wants to propose 1. 5 trillion and he wants a american hearts, american grit the rebuild america, we be by his side to make that happen. David it is great to have you here, j. Ay. The sixthll ahead, round of nafta talks are in the box, what will the seventh bring from the canadian side . This is bloomberg. David this is Bloomberg Markets. President trump added little new details on his trade mission in the statement to be an address, saying he will work to fix bad trade deals. Nafta talks wrapped up in montreal and were headed to talks in mexico city next month. Mckee, andis michael what are we expecting canada to bring to the table . They brought Creative Ideas to the talks, and got rejected by u. S. Rep additives. Representatives. Trump began his campaign about building a wall, but then elected the peso dropped and mexican markets dropped and he talked about putting sanctions on mexico. U. S. Trade representatives were all about canada and all the bad things canada is doing, and it is a hit scratcher for everyone. Head scratcher. It is thatout what canada once and how far canada is going to let itself be pushed around. Shery when are they meeting next . It begins february 26 and runs until march. Everybody a great they make a little progress on smaller bright red line is how much auto content has to be made in the United States. The dispute mechanism that deals with lumber is a big trade irritant for the two countries. Where they go from here is an interesting question. Will canada make additional counterproposals . Or do they wait for the u. S. . Had a guest last week, an attorney talking about the real issues with canada instead of mexico city, including lumber. We also have to talk about the special duty, because it will be Janet Yellens last meeting with the fed. Are we expecting a hawkish tone . Do think so, because this is her last meeting and it is no sign of a breakout of inflation, so they will try to get out of town with as little views as possible. Market expectations for inflation has to a little bit, so maybe take week that language, but at this point, theres no percentage of tying the hands of powell, which begins next week. Certainly no change in policy. Shery are they expecting a hike in march . They just dont want to tell jay powell you start yes that with her legacy. Shery mikes interview with the foreign minister coming up at 3 00 p. M. New york time. To watch will want that interview, and up next we will talk to the ceo of one of the Largest Engineering Companies in the world and ask his thoughts on President Trumps ambitions, mike burke of ae, will be here. My from washington and new york, this is bloomberg. 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. Reports. Health care is dragging down the s p 500. It is a still up 3 10 of 1 . The nasdaq is gaining ground. We have facebook and microsoft reporting up to the bill. Look at the what the bond market is doing. Treasuries continue to selloff. The 10 year yield is at the highest since 2014. The curve is also continuing to flatten, as we usually see with treasurys quarterly refunding announcement. The dollar is Holding Steady after that drop following President Trumps state of the union address. Lets get to first word headlines with mark crumpton. Mark japan is praising President Trump to put President Trump for his pledge to put maximum pressure on north korea. A cabinet secretary said today the country is pleased the present has sent a powerful message to correct to korean president kim jong on. Last night president said north koreas reckless pursuit of missiles could threaten our homeland. Turkish Officials Say the turkish president and russian president Vladimir Putin has agreed to accelerate efforts to establish turkish observation posts in syria. They also said a peace Conference Held monday in russia was an important achievement. At that conference an agreement was announced that would have drafted a new constitution for syria. Hundreds of people staged a protest in the capital of kosovo today, asking the government to do something about extremely high pollution. An errorquality monitor installed in the United States embassy there measured here measured air pollution is very unhealthy. The city has severe air pollution problems due to outdated coal plants that outdated power plants that use coal and exhaust fumes from old cars. The moon put on a rare cosmic show today. Super bright, and is the first time in 35 years that a blue moon has synced up with a total lunar eclipse. Luckof the u. S. Was out of for the eclipse, hawaii had the best view along with australia, alaska, and the yukon. This trifecta wont happen again until 2037. 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 . Shery mark, thank you. Infrastructure was a significant part of President Trumps address last night. The president , calling on congress to pass legislation to stimulate at least 1. 5 trillion in new infrastructure spending. Im asking both parties to come together to give us safe am a fast, reliable and modern infrastructure that our economy needs and our people deserve. With that call comes a question of how realistic it is and how it will be funded, since the president was a scant on details. In los angeles, joining us is mike burke. Provides consulting and constructio