I am glad i had an opportunity to tell them we are close to a deal that will bring the cost down significantly. Alisa james dataset said he is not opposed to buying the f35 but wants the best bang for the buck. The white house has released a schedule for president obamas last week in office. Mr. Obama will hold his final president ial News Conference wednesday. The president and the first ladys will also hold host the trumps for tea friday morning. After the inauguration, they will depart to a destination yet to be announced. Tom vilsack is leaving the Agriculture Department one week before his tenure ends. He has led the department for eight years and was president obama longestserving cabinet secretary. Sean spicer says he expects an announcement on a replacement soon. Mexico has nominated the current head of the north American Development bank, Geronimo Gutierrez fernandez to be the countrys new ambassador in the u. S. The current diplomat will become undersecretary for north america. Gutierrez will be facing president elects trump promised to build a border wall and deport thousands of undocumented immigrants. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Scarlet live from World Headquarters in new york, i am scarlet fu. Joe i am joe weisenthal. We are 30 mins away from the close of trading in the u. S. Here it u. S. Scarlet the house has enough votes to adopt a Resolution Health leaders approving a measure to enable a swift repeal of obamacare. This is a budget resolution, and that element is folded into the budget resolution the element to repeal obamacare. This had already passed the senate, and we will see how this proceeds. This is the first of many steps taken to retail present obamas legislative landmark deal on health care. Joe the question is what you miss . Scarlet the outlook is writing at jpmorgan, which recorded a jump in fourthquarter profit and recordbreaking earnest. Wells fargo posting a profit decline. We will see with the cfo has to say. Aroundrewsberry joins us president elect donald trump takes the seat in the white house next week. Could one of his first orders of business be to address m and a. We will hear from major r effort balai blair effron. Continues toe vote. It is not the final step. Several things have to happen there is controversy about the timing. Republicans do not want to be in a position where they retail it but do not have anything to replace it. Lets go to Bloomberg News reported Kevin Cirilli on capitol hill monitoring the report. Kevin, what is the significance of the vote, and what happens now . Kevin this paves the way for republicans to take additional steps in order to continue to repeal obama care. Procedurald a hurdle, similar to what the senate did earlier this week. This is where it gets interesting. There is disagreement among systolic and amongst about the timeline and how to offer an obamacare alternative. And the bight, issue is summoned publicans feel they should be a replacement already in place before we go ahead and repeal. How does that play into what happens next . Kevin i talked to some republicans like senator rand paul who argues there should be a full repeal with an immediate full replacement, but then i talk to other republicans, such as the vice chairman of the public and conference, represented doug collins, who argue there should be a full repeal, but wait a little bit, and implement portions of an alternative, because you look at polling amongst her publicans and amongst all americans, obamacare is largely unpopular, but there are key parts of obamacare that remain popular, and Republican Leadership is concerned that if they were to offer an immediate repeal and immediate replacement, they would be proving political poison for some of their republican colleagues who are up for reelection in 2018. A lot of finessing going on behind the scenes. You have the new administration taking office in a week. Joe right, as you said, obamacare is unpopular, but a lot of the elements of obamacare, such as the fact that Insurance Companies cannot deny you for having a preexisting condition and so forth are popular. Carehat is a health replacement look like that keeps the popular portions of obamacare but is not obamacare . Kevin i have been asking some House Republicans aids this very question, and i can tell you they seemingly will be looking at things Like Health Savings accounts, for example, and they are also relying, heavily, on the Incoming Administration, and Trump Transition Team has yet to put out their own timeline for when they would like to implement their own plan. That said, you could see, on january 20, political optics being used to portray and put forth a message that this is a president who wants to fulfill his campaign promises, but also, again, jockey to protect the political majority for 2018. Either way, a lot of moving parts on capitol hill. I can tell you House Speaker paul ryan is working closely with the Incoming Administration to get on the same page. The press secretary for the Trump Transition Team, sean spicer, is adamant they are all speaking from the same political playbook, but a lot of questions remain about the divisions within the republican party, and what exactly they will do. Representative collins told me he would anticipate the next step on an obamacare alternative to happen mid february. Scarlet mid february we will look for that. In the meantime, the vote to repeal obamacare is indebted in the budget vote. What else is part of the budget vote . Maybe we should know the details there. Kevin can you take a broader step of what the budget is going to do, it is funding things like military spending, as well as a portions,her economic and, again, just to quickly talk again about obamacare, and the popular parts of this bill, i feel we have here we have a soundbite ready for representative college. Lets listen to what he had to say earlier. Representative Collins Donald trump won because he made an appeal about a bad law. He said there are parts that they like preexisting insurance conditions being taken care of. Doubleteams, even six years ago never had a problem with that. Here is the problem we had things that could have been fixed there with a simple, or more dr. Centered, where everyone can have access to affordable care. They chose to overhaul of the government healthcare system. We are making sure some of those things that could have been done easily than are now put in place for every american can have access to affordable care, preexisting conditions are covered. The president tapped into that. That is why we are going at this approach taking a very methodically, doing exactly what we told the American People we would do repeal the law and put in a patientcentered, doctorscentered law. You are hearing again, republicans who fought hard to repeal obamacare during the Campaign Season now transition into a period of governance. Scarlet Kevin Cirilli joining us from capitol hill. Thank you so much. Coming up, well hear from one of wall streets biggest dealmakers, blair efron on m and a under a Trump Administration. This this is bloomberg. Joe a new study by harvards joint center for housing studies shows the u. S. Will add 25 million households by 2035, and while that is an increase from the last decade, it is nothing compared to the 1970s. Here to explain what happened is daniel mccue, a Senior Research associate who wrote the study. He joins us from cambridge. One of the cases people make to be optimistic about the economy is there is a lot of demand due to household formation. How whole how strong is the tailwind going to be for the household sector for homes from wrong household formation all of these millions of new households . Daniel well, our Study Suggests it is a strong tailwind. We looked at, kind of, the big picture in terms of the demographics, population growth is leading us to expect for the number of households. It expects a pickup, especially relative to the last decade, where the recession really, kind of, took a hit to household growth. Scarlet right, and we saw household formation growth taper off and plateau. Are we back nature directory that we were on before . Daniel we are. We are talking household growth to be in the 1. 3 to 1. 4 million growth a year, up from the 600,000, more than twice what we had seen over the past 10 years. It is about what we saw in the 1990s. Not exactly what we saw on the 1970s, as you said, when the babyboom was entering the age of household formation. It is, kind of, suggestive of underlying, statistically positive underlying demographics for the future for Housing Demand. Joe do you believe daniel the demand is going to be characterized by growth in a lot of senior households, millennials forming new households, and really a growing number of minority households that will reshape the distribution of demand in the types of housing that is needed. Joe yeah, i just want to ask about that. First, do you believe we are adding to the existing Housing Stock fast enough to absorb the demand, or will we have to kick it up a notch . And second, what is the nature of the homes that will be in demand . We have seen multi family do very well for a long time, singlefamily not as well. We going toe are need, and what the expected the breakdown will be in different types of households sometimes . Well, to hit your second question first, types will be driven by what we see in significant as Significant Growth in senior households. We see a big growth and singleperson households. Demand for consumption of smaller housing units. I think the rise of the millennials and the aging of this large generation from their 20s into their 30s will really impact larger, Single Family homes more than it has more than what was demanded in the past that gave. Recall decade. We call for growth and married couple households, which suggests additional need for ,pace, which is better obtained or more likely obtained through singlefamily housing. Over the next 10 years, growth and demand for singlefamily housing will follow the aging of the millennials in my opinion. Joe forcing scarlet forcing your household, you broke it down in ethnicity whites, hispanics, asians, and blacks. I wonder what kind of housing will be needed in that there tends to be multigenerational households among asian and hispanic families. Definitely, and i think the increasing diversity of Housing Demand will mean a increase and increasing diversity of Housing Stock. Whether it is increasing construction to accommodate different housing types that allow for multigenerational living, or more Adult Children living with their parents in, sort of, separate compartments whether that is a new house, or whether that is adjusting the Housing Stock of current parents or current owners that are getting older and able to use their housing in different ways. , sorte are seeing some of, other changes in demographics. People are getting married later in life, having kids later in life. We also see more senior couples were both spouses are alive just because people are living longer. How do these things affect the aggregate expectations, the headline numbers . Daniel well, you know, i think seniors increases in health and longevity, and, you know, being healthy for later in life has translated into people able to maintain living in their home for longer, and has reduced or delayed, i guess, the demand for living in Senior Nursing home types of situations. It has also, kind of, increased the number of older adults living alone. It increased the need to adjust the Housing Stock to accommodate a growing older population. Part of these projections shows the number of households 80 years old or over is set to double in the next 10 next 20 years. Also, another fact being that, you know, in sorry. In 2035, we expect one in three households will be over the age of 65. So, that really, given the associated growing needs for accessibility and increasing likelihood of having some sort of disability i think that is really going to call for an increased need to, kind of, adjust the Housing Stock to fit this rising, unprecedented growth in the number of older houses. Joe pretty poor. Thank you for coming up. Daniel mccue, Senior Research associate. Scarlet blair efron is one of the biggest dealmakers on wall street. He has advised on transactions including the png purchase of july and that nabisco sale to craft. Earlier today, Erik Schatzker asked him how Donald Trumps policies could affect m and a, and what corporate americas with the president elect . Trump aside. At some of the commentary Jeffrey Immelt from general electric, the have talking optimistic ways. The point, this time of year, imf, they, with estimates. I think it is 2. 2 , 2. 4 growth in the u. S. , 3. 5 globally. For the first time you talk to a ceo, he or she will say there is an opportunity to eat that. A Good Environment on markets. Labor, good. Wages rising. Retail, good. Investment, good. Optimism is a great stimulus. Now on trump clearly there is a level of uncertainty when waiting to see the data points. It is easy to say tax reform is a good thing. Regulatory reform is a good thing. The fact is we do not know what it will look like. We do not know what congress will say it ought to look like, and we do not know the timetable. So i think, for the most part, m , and a, when it comes to cross border war being transformational, needs to get these data points before we go on to the next leg. Erik if things play out the way they are expected to and there is a range of expectations, but there is a direction what kind of deals become more attractive, what kinds of deals become less attractive, or perhaps less doable . Blair great question. First of all, the deal environment is driven by two factors that is much more general. One, every sector is undergoing rapid change on a global basis, whether it is technology, competitive threats that is the biggest factor driving m and a. Combined with if you think you have a stable, global, economic backdrop, you can be comfortable and more comfortable that the first 12, 18 months will look closing your transaction, you will be stable you will have a stable runway. That is the biggest factor now. If i look on a trump basis, obviously it is crossborder. Obviously, it is consolidation. What will the Regulatory Regime say on continued consolidation . This is a big data points. Erik what is your expectation . Blair the expectation is it will be lumpy, and it will not necessarily be a policy that at least through 2017 you can see there are enough data points that you know how it will play out. Every situation will have to be examined very carefully on its merits. Erik do i interpret lumpy as inconsistent . Blair we need to know more. Yeah. I think inconsistent maybe your word. I look at it as you need a body of deals to go through the pipeline to figure out where we really stand. Erik will the president elect, once he is in office, bully companies into doing different kinds of deals, the way he has started with offshore and trade, for example . Blair i think it is very difficult for anyone outside the company to bully someone into doing something. We saw it with the financial crisis, highly unusual. Erik what about what we have seen with ford and toyota an toyota . Blair that is not m and a. Matters,y, language and in some ways it becomes selfenforcing. Erik so it is difficult to bully companies on deals why . Blair because you are spending shareholder capital, and you want to do something that is smart strategically for the longterm, and make sense shortterm. Scarlet that was Center View Partners cofounder blair efron speaking with Erik Schatzker. Banks rally following results. 4 00 p. M. ,rgo at wells fargo cfo John Shrewsberry will join us from San Francisco to break down their results and give us his take for the quarters ahead. This is bloomberg. Scarlet i am scarlet fu what did you miss . The big banks reported earnings, so i want to look at the return on equity, r. O. E. From j. P. Morgan. This tells a story since the financial i want to say collapse, but it is not. Financial crisis. How about that in 2007, jpmorgans r. O. E. Was a most 13 , it took a huge dive into thousand eight, and then slowly began rebuilding 2012, he continued to rise, and then we stumbled in 2013. 2016, for the full year, jpmorgan reported r. O. E. Of 10 . That is down from 11 percent the previous year, and also visiting the midteen target. The Fourth Quarter was a boon, but the Third Quarter r. O. E. For these banks was 18 on average. With the economy slated to do better, joe, and the Federal Reserve getting ready to raise Interest Rates, how that changes the trajectory of r. O. E. For the banks . Joe it shows that banking did not recapture what it was going into the financial crisis, and as you said, a lot of expectations they will surge back now. Lets talk about retail. Here are two lines. One li