Getting boiled. We welcome them in madrid. We will run down some of the results. I see Investor Confidence is there. The are revealing we are reviewing our priorities. Erik it is all straight ahead on bloomberg best. Hello. Im david gura. This is bloomberg best. Lets start with a day by day look at the top headlines on monday. Three days after his inauguration, President Donald Trump cut down to business. Against his trump first full week in office. Leaders iness they had a Business Leaders meeting this morning. He basically said he wants to create jobs in the u. S. He wants to reduce taxes, reduce regulations, but he says that they decide to take their business to other countries, they will face a big border tax. President trump is not wasting time. He has signed an executive order from theaw the u. S. Tpp. That was meant to contain china, his nemesis, but he has indicated he wants to renegotiate the north American Free trade agreement with canada and mexico. For several days, the markets were all focused on less regulation and lower taxes. Now they are beginning to wake up and say there might be things we dont like on the trade front. He did what he promised he was going to do. What is a bit unexpected is the fact you people like Malcolm Turnbull reaching out to shinzo abe and the Prime Minister of new zealand and singapore, lets take this tpp with its 11 members unless drive ford without the United States. U. K. Ighest court court ruling that theresa may needs the permission of parliament to trigger the countdown to brexit. Today, by majority of 83, the Supreme Court rules that the government cannot trigger article 50 without an act of parliament authorizing it to do so. This government determined to deliver on the decision taken by the people and then in the kingdom to live European Union. We will do this that we will do just that. They will put the word a document at the aim of which to try to give fellow lawmakers as little to object was possible. The Third Largest party in parliament they said they will bring 50 amendments to whatever the bill is. It then. The speaker of the house. It then falls to the speaker of the house. Yesterday decide how many of these amendments are allowed in and how many get airtime. To what extent does this ruling delay the triggering of article 50 . I do not think very much. Most members and the parliament and house of commons, with the snp on of some, the fromart from that apart that, there should be healthy majority for the bill. Opened, arket gets crossing the dow 20,000 level. The dow now sitting at 20,019. 4 6. Up 5 10 of 1 . We got very close a few weeks ago. We have now done it. Wall street has forgotten about the dow. All of the analysis is based on s p 500. The dow as a priceweighted index is not really practical in this day and age. It was fascinating to watch that zone0 becomes a resistance in early january. Clearly, people were viewing it as a technical level, and now seen is in, and we have really focus on the equityfriendly parts of his agenda. It finally happened. It held above that level. Dow. Dvanced point for the what does it really mean for investors . The Bigger Picture is you had last four to the five weeks, but some International Indices as well. From a technical perspective, that is pretty bullish. Sideways consolidation pattern followed by an upside break down. Republican lawmakers in philadelphia putting together a plan for working with President Trump. The president of mexico tweeting that he will not attend a meeting with President Trump. Is is really stunning. Donald trump would tweet out to the president of mexico dont come. Then he would get a response from the president of mexico saying, ok, im not coming. There is a lot of question about how the order of things transpired. We are here report yesterday that the Mexican Administration were already thinking about potentially canceling the trip based on trumps executive order to begin work on construction of the wall. Theresa may will be addressing the republicans shortly. Why is she doing it in this forum . When i go to washington and address congress and both parties . She will be at the white house tomorrow. The Development Across the pond influencing perhaps the leverage that republican officials, including the Trump Administration feel they have in negotiating a deal with the u. K. In terms of a trade agreement. That was before the withdrawal of the mexico meeting. A lot of moving parts today. Why my washington . Because why am i in washington . Because theresa may will be here. She will be the first foreign leader to meet donald trump at the white house. How significant is this trip . It is really important. The fact that trump sees the relationship with the u. K. Being critical to the success of his administration. To me, what is important is trying to flesh out what he has in mind in terms of a relationship. For theresa may, clearly, the challenge in terms of an economic slowdown post referendum is out there, but what we need to see our clear plans on how to seek investment into the u. K. , i continue to enable the economy to grow. What is President Trump expected to get out of this meeting . David, i put that question to his senior counselor, Kellyanne Conway. What she told me was that the focus is going to be all on trade. I can tell you that Kellyanne Conway also told me that perhaps something the might be discussing privately is ways in which President Trump and his administration could assist Prime Minister may and helping her meet that march 31 deadline of triggering brexit. Clearly, a lot of different moving parts behind the scenes. What about for him . Does he need a win . Given his problems with mexico sending it along with countries . The latter. The political orbiter President Trump and the people in that orbit tell me that today the goal is to have any hiccups publicly. David we do teeth into the weeks discussion of donald trump and trade policy and whether doubt 20,000 calls for champagne or caution . Can we go through earnings reports. And more of the weeks top business stories. This is bloomberg. This is bloomberg best. Im david gura. s giant electronic samsung is working to told Consumer Confidence after the note 7 smartphone debacle. Samsung electronics has confirmed faulty batteries cost its galaxy note 7 models to burst into flames. What exactly are they saying . Samsung said that manufacturers were saying electrodes in the first batch of a short circuit and the defense were in the design and in the manufacturing phases. Businessof the mobile apologized for the issues and said that is about 200,000 phones and about 30,000 separate batteries were damaged. Samsung has announced it will buy back nearly a billion dollars in shares on strong Quarterly Results. Fourthquarter profits double to 6 billion. Samsunglts show the empire was not badly damaged by the overheating smartphone fiasco. Semiconductors has been doing very well over the last year or so. They are saying in the First Quarter, they expect earnings overall to decline quarter on quarter. Produces have agreed on a way to monitor their compliance. They are not at 100 yet. Saudi Energy Management the Saudi Energy Minister says they hope to reach that in february. Everyone fully complying with their levels. Theyre setting up a committee theyreof the setting up a committee that will look at secondary sources. It will look at the market. President trump taking steps to advance construction of a controversial keystone and dakota pipeline. One is on transcanada, one is on the dakota pipeline, and the third is the idea that has got to be done with u. S. Steel and u. S. Made products. Agencies direction to to look at things quickly to number President Trump is coming from. But these discussions and negotiations have not yet begun. One of them has interesting one of them have something interesting, which is looking at regulations impeding american manufacturing. He is asking for collection of comments on that that will help them guide the regulatory andess Going Forward elimination of regulations. What he is saying, i like pipelines. If you want to be applied, i am in favor of it. And elimination of regulations. President donald trump acted on two of the most fundamental and controversial elements of his president ial campaign could building a wall on the border with mexico and tightening restrictions on who can enter the u. S. Beginning today, the United States of america gets back control of its borders, get back its borders. This was an executive order in which the president ordered the construction of the mexican wall. But what needs to be done by congress what needs to be done by congress to move this forward . This was Campaign Rhetoric repackaged. Now the ball moves to congress. House Speaker Paul Ryan are already meeting with their advisors on how to move this president s agenda into a budget. There are some Creative Ideas that i have been coming up with anothers in the congress where the taxpayer makes the initial down payment, but then eventually, the security measures are paid for by things like increasing putting a Border Security fee on visa applications from mexico and Central American countries that are the biggest offenders of illegal immigration. To things like a Border Security fee for crossing the border, and looking at remittances going from the United States into these countries, a Border Security fee attached to that. Networking giant cisco has announced yesterday that it will buy Software Maker apps dynamics. To pick it trying the business pivot this out of the hardware business. If you look at our dynamics, it is a cloudbased Application Performance Management system, but in reality, what they do is they translate application performance into Business Insights for the customer, and they do it across private cloud and public cloud. Willthink the synergy create visibility than no other country in the industry can provide to our customers. Chinas central bank is ordering the nations lenders to curve the loans in the First Quarter. A tricky situation you have to balance and keeping liquidity and funding, but at the same time, credit risks. And the mountain of debt in china. You have to balance that always. As the Chinese New Year is coming up quicker this year, and the time in which banks frontload their lending for the year, especially mortgages. That is a concern. You need to balance the credit risk, but keep enough funding ahead and into the prolonged Lunar New Year holiday. The didi oc has ordered banks to strictly control thanks i keep increases in new mortgage pboc ordered them sister to control has stashed johnson to be thelp j j forefront in medicine. Owners to gothe with j j . How did they structure the deal and the end . The answer is in the structure of the deal. Everybody had been openly talking about the ceo was reticent and giving up control of the company, and this is the best of the critical together in terms of the structure. He needs j j gets the assets it wanted. Barclays bank has settled on doubling its main hub. It will move 150 of its staff. Choosing dublin as a hub for the European Union is one thing. Barclays has never been on the end of some of the apocalyptic warnings of the demise of london after brexit. That with the plan to hire and moved to dublin. What we can see as cities emerging as winners we have dublin, number of banks looking to go there, and we have frankfurt and lloyds looking to in other cities. London is losing a bit, but this is not quite the end of yours Financial Center yet. Welcome back to bloomberg best. Im david gore. It has been an historic week on wall street with the dow jones topping 20,000 for the first time. What does this milestone mean . At an inflection are we at an Inflection Point . What is your take . That is certainly the hope. I remember when i woke up november 8 and ninth and the dow was down 600 points. Since that time, we have come roaring back 300 points or 15 . It is hope. And the hope is we are going to see a reform Corporate Income tax regime. We are going to see him perform elector eight regime to be more advantageous to be a business maybe infrastructure spending. Doubt 20,000in the and it has been a raucous day on the floor of the New York Stock Exchange as we get that milestone number. Doubt 20,000 signals momentum and sustains momentum. Dow 20,000 signals momentum and sustains momentum. This change or forecasts of Comedy Companies you will see listed on the New York Stock Exchange is mark . 2015,the First Quarter of we did not have any ipos. Companies were not able to take money to invest in their business. Look at where we are now. We are expecting 10 ipos in the next three weeks including four on friday. Those 10 ipos are really big ipos, most in the neighborhood of 500 million, 600 million. 7. 1we expect to raise billion. This is good. Where do we go from here . What does that say about what is around the corner . Over the balance of the year, we think both earnings and the economy are on track to essentially keep this bull market going. The near term is a little less certain because what we have really done is we almost destroyed this wall of worry in large part that the 7. 5 years of the bull market has climbed. Whether you think about it in terms of the low level of Short Interest in the market, the very, very high confidence levels on the part of both consumers and optimism in small business, both of which those numbers are extremely spiky, and when we have seen those numbers dip in the past, it has been difficult or stocks to sustain the kind of momentum that we have seen the last couple of months. There are people out there saying round numbers dont matter, but a lot of people said to get the retail participation, you need those big headlines on the front pages to induce their appetite to buy equities. , ande of the great ironies people are still calling this a rally, but the market bottomed on march 9, 2009, so this is a bull market. The great irony that this has happened without any breach of participation. Theret addictions has been met redemptions. This makes a difference because there are good reasons why retailers are out of the markets. Greed eventually comes back. It says doubt tops 20,000. That is a kind of headline or my motherinlaw calls me and says, what happened . Should the real money be selling . I dont think so. Sir John Templeton said bull markets are born grow in pessimism and skepticism. It is hard to say you have euphoria if you have had from retail investors. There is a lot of people that have sat on the sidelines for the past eight years that may want to start to get in. , we will revisit some of the weeks most compelling interviews. Donald trumps tough talk on trade got responses from economists and investors, and brexit could mean big changes for european businesses that may not be all bad. That will lead to bankruptcy, and it will be to opportunity. David this is bloomberg. David you are watching bloomberg best. Im david gura. Days after taking office, President Donald Trump made statements on trade, withdrawing american support for the Transpacific Partnership and promising to implement protectionist policies. Throughout the week we discussed the possible global effects of trumps stance on trade. Here is some of that conversation. We do think that trade barriers will probably go up. We dont expect the sort of numbers on acrosstheboard basis that trump was using during the campaign, 45 on china, 35 on mexico, but we think this will be a major focus. What we have seen so far confirms that. How does this affect your outlook for 2017 for the u. S. Economy and the Global Economy . It does to some degree. The economy generally is in pretty decent shape and the u. S. The main change is we are now building in easier fiscal policy should have an effect late this year and 2018 and sort of prolong this period of above trend growth into 2018. We think we will probably go beyond full employment. Inflation will move higher and we also have a lot more in the funds rate. Do you consider a strong dollar to continue as well . We do expect a strong dollar. Is mainly based on Interest Rate differentials. For the eurodollar we expect parity by the end of the year. Our Monetary Policy view is that the fed does need to normalize and will normalize, whereas the ecb and the bank of japan still can