Roundtable with tomand trend locked together. Daschle and trent lott. Jonathan very quickly, a big print in the eurozone, core inflation a fouryear high. , up. 6 . Gh on the euro treasuries on offer at the margin. Of the Market Action. Lets get you up to speed on the top stories. Here is emma chandra. Emma President Trump warned there could be a major conflict with north korea if diplomacy fails, telling reuters the u. S. Would love to solve the issue peacefully, but said it is very difficult. At the United NationsSecurity Council today, secretary tillerson will try to showed north korea the world is against it. In france, the president ial election is a week from sunday. At a rally and nice, Marine Le Pen did not mention her plan to pull out of the euro, but said macron lacked french fry use. Tell thes are ready to u. K. They are united when it comes to brexit. There will be a summit in brussels to discuss the uks departure from the block. They will warned the u. K. Against trying to create division. After anfell the most unexpected dip in fixed income trading revenue. At ubs, shares surging after betterthanexpected results and Wealth Management and Investment Banking. Clients added 21 billion of new money, the most in a decade. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. David President Trump promised to repeal and replace obamacare. Yesterday, that repeal and replace came back from the dead. Here to explain is kevin cirilli. Explain where we are. Then it has new life, but it is dead again. Mark meadows said he believed the ultraconservative party, the Freedom Caucus, has the votes to get through a vote on health care. Then hours later, he backtracked and said publicly to reporters that he does not believe the entire conference has the votes. So we could see a vote on health ase, not today nor tomorrow, President Trump had hoped to finish his first 100 days, but next week at the earliest. To get tobe next week the house, which is different than the senate. Caucus is oneedom board, but moderate republicans. Re weary this will go through a process known as reconciliation, then go to the senate, and that is where things get tricky. David another one of Donald Trumps promises was to move forward on tax reform. He had a promise in his contract with the american voter. We now have the outlines of a plan. How are they doing on that plan and how does it fit with the health care timing . Kevin i spoke with top lobbyists against the border tax. They did notgested have the detail to give them the closure they need. All of that said, the notion ism lawmakers and k street suggesting this is an opening bid in the Corporate Tax rate of might be raised in order to attract new sources of revenue should the border tax not the in it. The second point regarding ,ealth care timing, right now there are ways to get around that. That will be interesting to watch in the weeks ahead if they can slice and dice them to move forward. Taxes, first the house republicans, and perhaps senate republicans, how long is that process likely to take . Will we see some legislative language on what is proposed . Kevin cirilli the freedom this does not seem to bug these conservatives as much as Health Care Reform did. David pretty remarkable. Withyesterday, we sat down Alan Greenspan in washington to talk about the path of the u. S. Economy and how the Trump Presidency could change that path. Dramatichether that tax reform outlined could drive fundamental growth higher. If you werebe willing to make the cuts in social benefits, which would be required to fund the type of program he has put forward. It is also military expansion. A periodoing through in the last decade where the share of gdp going into the than it were the lowest had been. The budget outlook is not only a tax question, but also a military question. Rump has said both it is arithmetic. It is a problem. You get either a tremendous reduction in some areas of the economy, or you get a very large budget deficit. The figures for march for example, which are difficult to seasonally adjust, are now showing a significant spike in the budget deficit. I think that is the beginning of a move which will take a long time. Critical to is growth to have tax cuts, but not increased deficit, is it only entitlements that you get the money . What about tax expenditures . There are all sorts of deductions and loopholes and exceptions we can get out of the tax code, get real reduction in rates, brought in the face as they say, and still not increase the deficit. Is that a sensible plan . Simpson bowles was put together to tackle this problem. They did precisely what youre suggesting, lined up all the tax expenditures and the benefits and brought the deficit down to normal. It had bipartisan support, probably could have passed the house and senate easily. Not listenhe would to the commission he put together. That was the worst mistake i think he made economically. We had used up a lot , so we dontews have the capability to do the same thing now. We should be doing Something Like that. David that was Alan Greenspan talking with us in washington. He basically said there has to something that is revenue neutral for economic reasons. He said if you run up a big deficit, you will tighten monetary conditions. The investorsink we spoke to this week are finding it difficult to believe that tax plan will become reality. If you are running the fed, if Alan Greenspan still ran the fed , im not sure he would provide any forecast. David he is deeply skeptical, but also concerned with deficit spending could do. Jonathan i think that is spot on. Kimmittoming up, robert will be with us live from new york and washington on the eve of President Trumps 100th day in office. This is bloomberg. I am emma chandra. Moltkee bank names von ceo. Ubs Wealth Management tries profit. He told bloombergtv what he is concerned about. The biggest risk to markets issues,rgence of minor north korea, france, any geopolitical event, many macroeconomic issues, and they are all there. Other, there is a chance many issues may crash. That is your Bloomberg Business flash. Jonathan thank you very much. Dark place, dropping the most in barclays, dropping the most in six months. With the ceospoke earlier today. The corporate and investment north of 8 ,d rot 100 basis points better than last year. In terms of banking fees, mergers and acquisitions, Debt Capital Markets, Equity Capital markets, we had a great First Quarter. It is that best Debt Capital Markets revenue number in the history of the bank. Revenue, rates and currency come up we had a strong First Quarter last year, and on a quarter to quarter comparison, we did not have the uptick that the u. S. Banks did come up but in part that was because we had a Strong Quarter in the First Quarter of 2016. We always want to do better, but we are comfortable with how we came out and the overall profitability of the cib is making good improvements and we feel good about the quarter. In relation toy how your peers performed . You mentioned your strength last year is one of the exceptions. At deutsche in fib bank, 24 is the average among the top five in the u. S. Are you happy with that . I am comfortable where barclays is as a competitive matter. Investment banks had very down quarters last year in terms of the First Quarter and recovered from a weak firstquarter. We had a good quarter in the First Quarter of last year. We could have done better on the u. S. Rates side, but we will not make any judgment on one quarters performance. Have you witht to us on the program. Fantastic interview. The story is this tremendous outperformance in the United States on fixed income, trading revenue. Walk me through the explanation as to why they significantly underperformed year on year . Fig revenue down year on year. 11 at deutsche bank. 24 up at the top five in the nine states. Says this is about positioning, not about the franchise. He is downplaying the significance and says it is not right to judge this business on one quarter. Focused on the overall profitability of the bank, which was up strongly. He wanted to sing the praises of debt underwriting come and he explained this comparison year on year with good comps in 2016, not something his rivals had. The stock is down 5 or so. A man who has backed Investment Banking at barclays. He said this is an important transatlantic heart of the business that needs to be there as europeans are pulling back. You would expect them to beginning market share. Jonathan you would. Lets talk about the man himself, questions about his future. The first time we have had an opportunity to ask him about it. What did he say . Ande said he made a mistake was trying to protect a foldable colleague, this on his actions to unmask a whistleblower. He was reprimanded by the board for doing that. This is now in the hands of the regulators. He is limited into what he can say. He says he has support of the shareholders and the board. Hasshareholder lobby advised to vote against him, so we will see how the regulators come down on this. Jonathan frexit, brexit, he does not seem to be concerned about brexit. A different story with regards to brexit, u. S. And European Banks talking about thousands of job cuts. He did not want to talk about any job cuts. He wants to talk about hiring in europe. Ech is what on fint he wanted to talk about this morning. Jonathan thank you very much for that exclusive interview. The stock down 5 . Coming up, we take you back to washington, d. C. , the former u. S. Deputy treasury secretary. Live from new york city and washington on the eve of the president s first 100 days in office, you are watching bloomberg tv. Combination of positives. My two words would be, economic symbolism and Foreign Policy symbolism, so the president has projected the power of the United States around the world, which is reinforcing to our allies and putting pain into our adversaries. Economicates to symbolism, he has done a lot with executive orders. The combination of those two things, we both know the presidency, a good component is the bully pulpit and sending messaging from the presidency, so a message of Economic Leadership and geopolitical leadership, those two things are positive of about the first 100 days. He emphasized President Trumps geopolitical leadership, and goodness knows President Trump has had plenty of opportunities already. Joining us now is robert kimmitt, who served as deputy secretary treasury, and ambassador to germany, now senior counsel here in washington. Welcome back. Mr. Ambassador, north korea is very much in the news today because secretary of state tillerson and President Trump have been saying various things. White has this why has this moved to the top of the agenda . The administration has concluded that the situation in north korea presents a danger not only to northeast asia, but Global Security more broadly. What i like about the fact is they are moving beyond rhetoric to action, and the action is in the right order, diplomatic, economic, but keeping the military option on the table. The secretary of state will be at the United Nations today pushing on the diplomatic side. Indications of tougher sanctions against north korea, but the military option is not off the table. He chinese are key to this they are a permanent member of the Security Council and crucial on the economic sanctions question. Is President Trump making progress when it comes to the chinese . The last time sanctions were voted on, the chinese abstained. Is that progress . The chinese often abstained. They abstain from the use of force resolution in the first gulf war. That is the way of saying we understand the need to move forward. One thing that might surprise your viewers, President Trump inveterateas an telephone conversation this with World Leaders as president bush, so he has had multiple conversations on the north korean question. Approachinge now the end of 100 days. Give us your sense of for all about how this president is doing geopolitically and economically. I have been through five first 100 days. They are always bumpy, even for experienced politicians. President trump was elected because he is not a politician and filled his white house with people who had not subvert served in the white house before. Next look forward to the 100 days and beyond, i think there are Lessons Learned and there is a developing momentum on the economic and National Security side. David talk about tax policy. We have been promised this plan. There was some criticism saying there was not enough detail. Is that a fair criticism . Is this a sensible way to get things done in washington . To move a sensible way us towards action. In 1986, it was done differently then. You have to do it in the style that works for the political moment and the political leader. President trump is different than president reagan. It is not surprising that what we saw was putting out the key elements by the way, building on a tax plan that came out during the campaign, but the tax plan to came out, again, is an opening bid and will move the process forward. There has been detailed work done inside the administration. I dont think they wanted to put details out until they had a chance to start with the congress. David they are starting that process. Has the white house and the Treasury Department decided what the important things are that they need to get . In that one page, you saw the priorities. What is this administration focused on . Growth and jobs. Economic growth and good jobs, especially manufacturing jobs. Focused oneen results, not rhetoric. If you take a look at the part the mostx proposal, important part was harmonizing corporate and Small Business taxes. 75 of new jobs are created by small and mediumsized enterprises. That will be the engine. David what does that do to deficits . Baker and of jim ronald reagan, you had to go across the aisle. His president , even with own party, it does not make sense to go for it with a deficitbusting proposal. It cannot be a deficitbusting proposal. You have to Pay Attention to the deficit. There has not been enough attention on what he is doing away with, a lot of tax preferences, even deductions ,or state and local income tax quite unpopular, so they have to find ways to enhance the revenue side. Some of it will come to the Economic Growth and spurred by lower tax rates, but there will also be spending cuts to go with it and Regulatory Reform. In theis there enough tax expenditures to get it close to revenue neutral . We just talked with Alan Greenspan yesterday. Of simpsonthe days bowles, it was true. Today, you cannot get much money out of it. Get think you can considerable money on the tax side. You also have to take a look at spending cuts, discretionary and beyond, and couple Regulatory Reform that will unleash those businesses better job creators. David can you get there without touching entitlements . I think entitlements need to be a dressed. I think you can move ahead on tax reform with the promise of then moving towards entitlement reform. You cannot get ultimately to longterm fiscal sustainability that taking on entitlements. David thank you so much for being here. Great to have you. Jonathan great work. Lets get you up to speed on the Market Action. Up,res positive, 13 points as well. We are set to advance for a second straight week. Switch up the boards, treasuries, what arranged through april, as low as 2. 16, as high as 2. 4, yields up a basis point at 2. 3 . A slow grind higher in dollaryen, a weaker japanese yen story at 111. 37. The boj downgraded their forecast. Out ofnflation print europe, up by. 5 . We cross over for breaking news with david westin. David gm earnings out. The stock is up because earnings per share were 1. 70, beating 1. 48, revenue also beat estimates. They had a Strong Quarter and strong truck and crossover sales in the United States, and did well in china. And is the General Motors story. We will talk with the cfo of General Motors at 8 10 this morning. Now thats good and update on headlines outside the business world. House leaders have put off a vote on repealing and replacing obamacare. Kevin mccarthy says when there are enough votes to pass the measure, a vote will be scheduled. Republicans had hoped to vote this week, but moderate republicans are still opposed. President trump plans to expand ,ffshore drilling today ordering the interior department to