lisa: from bloomberg world headquarters in new york, we are going to boston and tehran in the next hour. here are the top stories on the bloomberg and around the world we are following. in the markets, u.s. stocks near session highs after this morning's jobs report. employers adding the most workers in four months, but wage growth slowed. the dow climbing above the 20,000 mark for the first time in a week. thanks leading the s&p 500 higher. wells fargo, bank of america, today asall rallying president trump is expected to sign an executive order specter to roll back crisis era rules. u.s. expected to impose fresh sections on iran. the president seeking to punish tehran for ballistic missiles testing and for "playing with

fire." abigail doolittle joins us with the latest. abigail: nice gains for major averages in the u.s.. the dow, s&p, and the nasdaq trading higher. on pace for its best day of the year, the s&p 500 is having its best day in about a week. the nasdaq up 310 to 1%, but underperforming the other major averages. the dow may be back about 20,000, but it has not managed to make a 1% move on a closing day to the upside in 40 days. this is g #btv 57092 the last time the dow made a 1% move up was here in the last time we saw in 1% move down was october 11. big stretches of relatively complete trading and a 1% range from the upside to the downside. we do see the last few times this has happened we have seen movement up and down. are waiting for about a

volatility and we did see a big move on an intraday basis recently, so perhaps a telephone what is to come. another place where we have seen volatility is the 10 year yield. it had been higher earlier, but take down to the session lows. represented in grain, it tells us that safe haven bonds are rallying. we have riskier stocks rallying. the move down did come on a payrolls report which had very nice headline numbers, but wage growth disappointed a little bit. it was the slowest since august , so it may suggest the fed may be on hold for rate hikes. interestingly enough, even with the yield lower, we have tanks rallying in a big way. the financial etf is on pace for its best day december, being held by all the big names and jpmorgan, wells fargo, bank of america, and morgan stanley. president trump is expected to sign an executive order to review dodd-frank and the fiduciary rule.

there's a possibility that the rules of those regulations could be removed. it's just a review, but certainly helping the banks today. vonnie: abigail doolittle, thank you for that. let's check in on the bloomberg first word news. mark crumpton has more from the newsroom. mark: the u.s. has imposed new sanctions on iran after missile test. the treasury department released 12 companies and entities. they are facing restrictions for supporting the program with links to terrorism or backing iran's revolutionary guard corps. trump said iran was "playing with fire." he is signing an executive order that will review the rules placed since the recession. they are looking at the dodd-frank rules put in place since the financial crisis.

president trump spoke at a meeting with ceos. >> we have some of the friends of mine who have nice businesses that can't borrow money. they can't get any money because the banks just won't let them borrow because of the rules and regulations in dodd-frank, so we will be talking about that. mark: the present is also taking aim at an obama administration regulation that is hated by the financial industry. he will block the so-called fiduciary role that requires a advisors- retirement to work in the best interest of their clients. the president's controversial choice for education secretary has cleared a hurdle in the senate. betsy devos's nomination move ahead in unusual early morning about. to republicans say they will oppose her, so mike pence may be needed to break a tie vote in the chamber. the french president says there is no doubt that an attack outside one of the worlds most

famous museums was terrorism. a soldier outside the louvre opened fire on an attacker armed with a machete and yelling allahu akbar. the attacker was wounded and has been arrested. he is described as a 29-year-old egyptian citizen. dayal news 24 hours a powered by more than 2600 in oversts and analysts 120 countries, i am mark crumpton. this is bloomberg. vonnie? vonnie: back to our top story this hour. more on what we are expecting on d president executive order is kevin cirilli. there is going to be an executive order. do we know what exactly it is going to contain? kevin: two things. i spoke with anne wagner who discussed this last night with the white house. they are going to put a temporary halt on new financial

services regulations. the treasurystrict department from issuing new regulations and also having to review, if you will, the dodd-frank reform law from 2010. the other element is that it is going to freeze and halt the new developments ahead of the april 10 deadline that would implement the fiduciary role that impacts broker-dealers and financial advisors. critics of the walk back, mainly people like senator elizabeth warren and democrats, argue that this will limit and hurt consumers and not force their financial advisors to act in their best interest. people who prays this policy and praise the actions coming out of the white house say this will allow the market to expand to lower income individuals and give them greater access to the market. you mentioned the

opposition to the rollback of the fiduciary rule. i want to get your take of the opposition to the rollback of the dodd-frank act. >> the dodd-frank act was passed by congress and to repeal it would take another act of congress. obviously democrats have supported that law. they say it's going to be required in order to keep the u.s. from going into another great recession. they have put out a lot of opposition to the idea that the president is going to use regulations and his executive authority to start rolling back that law. to repeal the law and replace it in congress, they will face a lot of opposition from democrats within the congressional branch. it seems like they're going to try to block that. be done onat will dodd-frank will be likely done here at the white house through executive orders and actions. vonnie: in fact, the national director, garyl cohn, did join bloomberg tv earlier to talk about the dodd-frank regulation.

have a listen. >> the one thing that dodd-frank never really dealt with is that it never dealt with too big to fail. we need to deal with too big to fail and no government bailouts. that was an area that they said they were going to deal with, but they never actually dealt with it. vonnie: you heard what gary cohn had to say. will he get his way on this? will it be his reshaping? kevin: democrats would argue that designation and the labeling of banks as too big to fail deals with it. republicans, including people like gary cohn as well as house financial services chairman, would argue that the designation is something that codifies too big to fail. what you're hearing from gary cohn is what you have heard from the chairman earlier. what he said is that in the next couple weeks, the keyword weeks, we are going to see the house rental services committee again to markup and move out of committee key pieces of

legislation that would walk back and repeal aspects of dodd-frank. moveurse, the senate will at a slower pace, but either way, the republican ca control of congress working to move this through the white house. lisa: will they rollback this rule to oversee proprietary trading? toluse: we have seen people in the streets protesting against things like the immigration ban and also trump's actions and statements about women's health. this is going to be another area where democrats try to mobilize their base and say that republicans are trying to roll back regulations that would stop us from getting into another recession. we are likely to see democrats mount a resistance to this. it is yet to be determined to find out whether or not that is going to connect with voters and whether or not they are going to stop this from happening. vonnie: an awful lot on their plates. they are not in the majority.

is there anything you think they can do here? they don't need to get any concessions from republicans am a d, do they? kevin: the senate banking committee chairman will need to work with more center democrats like heidi heitkamp as well as some other folks in order to move them to the middle or take an approach to walk back some areas of dodd-frank. i would also quickly make the point that this is going to be what i am hearing a piecemeal approach out of congress on the issue of walking back dodd-frank. it will not be done in a broad, sweeping action. however, i do think that these executive orders are sending a clear signal that republicans in congress will be addressing through the lens of populist rhetoric the dodd-frank law. cycle,ring the campaign no one took the choice act

coming out of the house financial services committee seriously. now, it is the blueprint of financial regulatory reform. lisa: kevin, sending a signal might be the understatement of the year. thank you so much, kevin and toluse. coming up, the job market enjoying steady growth, but the paycheck is not getting any higher. we will break down those numbers with the chief economist at standish mellon. this is bloomberg. ♪

lisa: this is "bloomberg markets." i'm lisa abramowicz. vonnie: i am vonnie quinn. lisa: you are looking at live

pictures of the white house where donald trump is meeting with business executives. we are waiting for his signature on executive order. we will bring you all the details as soon as it happens. time for the bloomberg business flash, a look at the biggest business stories of the day. macy's shares jumped the most in five months following reports that the company is an early-stage talks to acquire the chain. the discussions are said to the evil thing and a full takeover may not be the only option. i macy's takeover may appease activist investors pushing for more money from macy's real estate portfolio. wells fargo says save money is on the atlanta falcons and not tom brady and the patriots at the super bowl. has correctedtors ly predicted the winners the last 10 games and they use a money manager to evaluate nfl teams.

wall street banks have to prove they can survive major economic turbulence as part of an annual fed exercise under dodd-frank to make sure that lenders are not vulnerable to a recession. president trump plans to sign an executive order to scale back this 2010 law. stress test scenarios this year include a 10% jobless rate and difficulties and corporate lending to test the resiliency of firms like goldman sachs, morgan stanley, and deutsche bank. results are due in april. that is your business flash update. vonnie: disregarding the nfl story, lisa, i would have people go to my battle of the charts today. [laughter] business weserious reported earlier, the u.s. added 227,000 jobs in jun january. 4.8%,employment edged to but the bigger disappointment was the lack of wage growth. average hourly earnings were

2/10 shy of the year over year 2.7%. janus capital fund manager bill gross called the jobs report schizophrenic earlier today. >> jobs grow strong, but wages revised down by .2%. instead of 2.7% annual, it's 2.5%. that's good for corporate profits to keep wages down, but ultimately we know that it is consumers and consumption that drive the economy. enough money earn or money is only growing at 245%, that's a slow-growing economy. i can see how markets might interpret it one way or the other. vonnie: here now with how the fed will interpret all this data is vincent ryan howard -- vincent reinhart. his office inom boston. thanks for joining. schizophrenic may not be the word you use.

what word would you use? janett: it validates yellen's view that if you run the labor market hot, you pull more workers in and you do not push up cost pressures. from a federal reserve perspective, this is an ideal outcome. you can point to strong economic and aum like job creation lack of increased cost pressures at 2.5% year on year gains in average hourly earnings. lisa: i was talking to somebody earlier that points out that the reason we're not seeing wage growth is because the job gains we are seeing are in the less, lower paid sectors of the economy. what do you see as a likely way of juicing job creation in the upper tiers of salary? vincent: it is not anything the federal reserve can do. lisa: exactly. vincent: it's about fiscal policy more than anything and trade policy. we need some more capital spending.

i think the point you are making really hinges on the fact that potential output is only growing 1.5% according to the congressional budget office. that doesn't increase the pie much. therefore, there is not that much to share. this is the serious business of job creation that gary cohn was talking to us about earlier. he says the priorities are now jobs number one, jobs number two, and jobs number three. with wages down and minimum wage off, that would add takeover profits bottom line and the argument would go that it would create more jobs. will that happen? vincent: we do not want to get excited about one monthly number. the gains in average hourly earnings should be taken in conjunction with $.10 gained in december. we should smooth through that.

more than anything, what we need is productivity growth. remember the productivity numbers earlier in the week were not exactly encouraging. we have to do things to encourage capital spending and more technological progress. that is hard to just reach on the shelf and do. hard going to require thinking about tax policy in particular. lisa: earlier this week we heard from the fed, and it seems like they are on hold and waiting to see what happens on that fiscal stimulus landscape. at what point in the year will they know enough to make their move or not? vincent: so one thing you will see repeated in the fomc transcripts is somebody saying, well, we will know more and 6-8 weeks. they say that each meeting. the fact is there is a lot of uncertainty. we do have a sense that the president is moving expeditiously on a lot of regulatory changes.

the congress has a busy agenda. the fed has a luxury, and that is if you only envision tightening around three times in 2017, you don't have to be in a hurry to do it. so they will probably use that time, that is take a pass on the march meeting, and wait until june to have a better assessment of what is fiscal stimulus, what incentives to spending came out of the white house and capitol hill. vonnie: net positive or net negative for the economy if we get everything we have heard so far, including border adjustment tax and maybe 20% on mexico's goods, for example, and a reduction of corporate profits? what is your total assessment? vincent: so i think the answer is it is impossible to assess because we have not heard a consistent message. there are some things that are encouraging in terms of efficiencies.

likemists, by and large, tax implication and a border adjustment tax is an improvement on the current patchy structure we have. economists generally like free trade. i worry when there is a discussion on across-the-board tariffs or trade restrictions generally. the administration thus far is giving with one hand and taking away with the other. i think it makes it more likely we get a pickup in spending this year, but the medium-term prospects are much more confusing. vonnie: say nothing until we hear more. thank you, vincent reinhart at standish mellon. expected to sign an executive order targeting dodd-frank in the fiduciary role. what can the president actually do on dodd-frank without legislation? this is bloomberg. ♪

vonnie: you're looking at live pictures of the white house. president trump has been meeting with business executives and we are also waiting -- awaiting the president six or -- presidents signature on an executive order. lisa: let's give you some insight on some legislation that may come soon on what wall street oversight could look like under president trump. we want to get to rob, our senior legal editor. he joins us now from capitol hill. rob, what are you watching from a legal perspective to glean some insight on how quickly they could move in overturning dodd-frank? second of all, what aspects will they target in this legislation? rob: the legislation is the important thing to watch, because this executive order we are going to see today from president trump on dodd-frank may not -- amount to

a wish list of what he wants regulators to do with a lot that already exists. he cannot just delete dodd-frank with the swipe of a pen. we're keeping an eye on the house and senate for what they are offering on rolling back pieces of dodd-frank. lisa: what you expect to be on his wish list? rob: the legislators are targeting the consumer financial protection bureau that was created. they look at the systemic risk council that was created by the law. they would look at how failing institutions we get wound down in bankruptcy. it's a pretty broad list. it covers a lot of ground, although it is not a full repeal of dodd-frank. vonnie: yeah, exactly, so what are the measures likely to be given up by republicans, if they need to give up any? what it be living will or capital standards? what would it be? on the houseans side have said they are still

willing to include capital standards in their reform efforts. they want to simple fly at a little bit by making the percentages just they let more flat for what banks have to hold , but i think the capital standard is the big one, to answer that question. vonnie: rob, thank you, bloomberg senior legal editor. lisa: coming up, more on president trump's plan to roll back the dodd-frank role. by the man whoed the restructuring after the financial crisis. this is bloomberg. ♪

♪ livee: live from --david: from -- lisa: live from bloomberg world headquarters. vonnie: this is bloomberg markets. you are looking at pictures of the white house where president

trump had a meeting with executives. he are -- we are awaiting his signature on an executive order. let's start with headlines on bloomberg first word news. here is mark crumpton. mark: two u.k. judges have a exit lawsuit to force a part -- lawsuit. it is a boost from prime efforts theresa may's to start negotiations by the end of march. -- the u.s. would protect japan against threats. administration is defensed to expanding ties with both countries. this morning attack -- this morning's attack outside the latest in a wave

of violence that has left more than 200 people dead in france over the past two years. it happened just hours before in olympic bid officials posted a ceremony near the eiffel tower to make their final commission -- decision to the international olympic committee. has not hosted the games since 1924. lawyers for mexican drug lord joaquin guzman are complaining -- are too strict. he appeared in a federal court today. his lawyers say he is on a 23 hour lockdown in a special jail unit. global news 24 hours a day, powered by more 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: thank you. let's have a look at u.s.

stocks. it has been an up friday. the dow was making the best gains of the day up more than 20,053. the s&p 500 is up .7%, 2296 and the nasdaq up .4%. let's get to bloomberg's abigail doolittle. abigail: it is a nice rally and this is true for dow transports. what stands out is the dow transports are up for the first time in six days. we see dow transports are down more than 2% over this time. her. .p more than 1% -- time period up more than 1% now. as for what is helping this index today when we look at railroad stocks, we have norfolk southern trading higher.

it does seem to be helping these stocks. we also see a bit of a reversal in shippers and airlines. fedex and ups trading higher after ups put up a disappointing fourth-quarter report missing estimates. we also had a downgrade. 29%.016 profit fell they were saying that has to do with a pension charge and a product ship. a nice rally for both stocks today. we also have a nice rally for delta and united continental. the airlines had been down trumple days on the travel ban. we are looking at a reversal. as for white -- what might be #btvwe take a look at g this is a three-year chart of the s&p 500 airline index. overall an uptrend, but sideways.

right now we are about 30% above the 200 day moving average, suggesting we could see up to a 20% moved down to the 200-day moving average. it is also supported by relative strength index putting in a series of bearish lower highs as appeared when we saw correction in the past. it will be interesting to see what happens in the future. vonnie: that is for sure. thank you for taking -- keeping an eye on that for us. let's get more insight on president trump's plans to roll back federal regulations. he oversaw -- we spoke to gary cohn earlier and were asking him about this particular point of affairs, this idea that

.ankruptcy might be an outlet what would your solution be given that republicans want to roll back dodd-frank and all that? careful. the economy is doing well and the banking system is much more resilient and better capitalized unless levered. only eight years ago we went through a crisis -- went through quite a crisis and i would tread carefully. vonnie: --lisa: do you think there are parts of dodd-frank that could be rolled back without affecting the safety of the financial system? jim: the house financial committee has a template for a reform of dodd-frank. change to thes a so-called orderly liquidation authority. they are rules and regulations from the fdic and the fed.

, we still have very large financial institutions whose failure, given their interconnectedness with the rest of the financial institutions in the system, their failure could have systemic consequences and could cause other institutions to be put under stress and potentially to fail. one of the real innovations of dodd-frank is making sure these institutions have so-called living wills, which are really just a path to be able to put themselves to bed without adversely affecting other institutions. vonnie: we are supposed to have living wills at this point. we do to a certain extent. gary cohn was asked by david point and thehis people in the administration right now are not happy with how things are when it comes to banks potentially failing.

gary cohn saying we have not -- the one thing dodd-frank never really doubted was that it doubted it was too big to fail." jim: i think that is an exaggeration. are rules wills and regulations that have been highly developed. financialt institutions have prepared living wills and most of them have gotten through the approval process by the fed and the fdic. vonnie: you are saying it is politically impossible to roll most of this back. no, it is not impossible, but what is the alternative? to break them up and make them smaller? i wonder if that is where gary cohn wants to go given his lineage. what i heard him say is that he thinks these global universal banks are part of the strength

of america and we want to unleash them to a healthy economy. lisa: i think the key word here is global and the federal reserve received a letter earlier the week basically telling them not to participate international -- in international meetings and only -- in order to review global without the sign-up of president trump's team. you think this signals a lack of willingness on behalf of u.s. regulators to work globally to make sure the global financial system is safer? jim: we have 20 financial institutions in the world, in japan, china, europe, and the united states that are enormous as a trade in many markets with each other. they have a norm us interconnectedness and if regulatory regime applicable today's -- to these banks is different country to country, the way they trade and interact

with each other will be less efficient. u.s. regulation has to have an regulatorswhat other are doing as to not create inconsistencies between what goldman sachs needs to do in new york and what goldman sachs needs to do in london. vonnie: we just got the white house spokesman, sean spicer, saying president trump will sign an executive action on dodd-frank. jim: let's talk about what an executive order is. dodd-frank is a statute of the united states congress signed by the president. he can do very little other than direct his treasury team to engage in a review of the law and come up with recommendations for reform. that, the house initial service committee has been doing a lot of work on this for six years since the passage of the act in 2010. there is an agenda and a template and my guess is once the treasury leadership team is fully in place they will engage

with house financial services around the kind of reform that the chairman has already pioneered. lisa: which banks do you think would benefit the most from rollbacks of dodd-frank? jim: i think small and medium-size banks will likely be the beneficiaries. whether they like it or not, the largest financial institutions in the country -- they are bigger then they were when we went into the crisis and as a result i think anyone who lived through the crisis is unlikely to think that going back to the , the-- era of greenspan's light touch regulatory approach greenspan had is the way to go with these large interconnected financial institutions. lisa: jim millstein, ceo and founder of milstein and company. thank you so much for joining us. vonnie: we are getting headlines

from sean spicer, who is holding his daily press briefing. he is saying many things. let's start with the executive actions to be signed close to 1:00 p.m. one of them will be an executive action on dodd-frank. he also talked about the jobs -- the betterd it than expected number of jobs shows confidence in trump and also talked about the deal with lockheed martin for an f-35. it looks like we will get more details on the contract. trump will also sign today orders on release for borrowing. this is all from the press conference of sean spicer, the press briefing at the white house. sean spicer saying iran sanctions are in response to the iran missile program. that is the white house will continue to respond appropriately. this is bloomberg. the u.s. imposing new

sanctions on iran in the wake of missile test. president trump is seeking to punish iran. we will have the latest. this is bloomberg. ♪ ♪

vonnie: this is "bloomberg markets." the u.s. impose new sanctions on iran after it carried out ballistic missile tests. president trump is seeking to punish tehran, warning that the islamic republic is "playing with fire. for more on the escalating roe, let's bring in net who joins us

from washington d -- washington, d.c. what have we gathered. are there u.s. companies that will suffer as a result of these sanctions? nick: we spoke with senior administration officials on call this morning and they were explicit these sanctions would not directly affect any business deals with chiron, specifically mentioned -- with iran, specifically mentioning the boeing deal. it looks like these are fairly targeted sanctions that would not affect any sort of business as the economy of iran opens up in the wake of the nuclear deal. vonnie: we spoke with stephen biddle earlier and i want to play you something he said about the fact that the u.s. may be had no choice but to do this. >> it is hard to imagine the white house had much other choice. the iranians went out of their

way to do something that required u.s. response. it would be unrealistic to think they would do nothing. what they are doing with a weak sanctions regime is trying to send a signal. the problem is a goes beyond where it is now, if the administration decides it needs to escalate, it is unclear how much real leverage they have if the signal does not work and they do not knock off their behavior. point: he also made a that the u.s. needs allies in order to push back on this, it can't be a unilateral action. what do you make of those comments? true.that is what we are hearing from the trump administration is it is sort of a manner -- matter of hone. when mike flynn went to the white house briefing room he said iran is being put on notice. and you look at these individual sanctions, they are part of a

pattern we saw under the obama administration where iranian entities would be sanctioned and the rest -- that list is quite long. the trump administration is saying while those steps may be similar, these are part of a broadening or toughening of tone against iran where the u.s. will seek and take more colors of action -- coercive action. we were told the u.s. would continue to exert pressure on iran. it seems like we have not heard the last from the white house on the iran issue after these sanctions. have alliedhe u.s. support in trying to penalize iran for the actions they took? nick: there is widespread condemnation from european allies around the world about iran's activities, developing the lipstick missiles -- developing ballistic missiles.

and theans in congress trump administration have been particularly aggressive and to account.old iran in european capital, the focus much more is on maintaining the integrity of the nuclear deal and making sure that is where the focus is in keeping that issue on track and that deal in where the u.s. administration is saying we will let the nuclear deal stand, but we want to focus on these other , state-sponsored terrorism and work on ballistic missiles. we want to fall their feet to the fire on those issues and leave the nuclear deal alone there. vonnie: another administration that isn't afraid to meet and that -- tweet and the foreign minister in iran has been tweeting. i would not be too comfortable reading his tweets. what kind of response could iran

be planning? there are several theories of thought. one is republicans are seeking so muchagonize iran that it would walk away from the nuclear deal. that is one possibility. the other thing is the trump administration really believes the previous secretary of state, john kerry, basically gave away the store on the nuclear issue and that he wasn't nearly tough enough in the weeks of talks to negotiate that deal and what iran will respond to is a much tougher line and you have to be toughness. respect that is what you see with michael flynn standing up and that gets back to this issue of what they are saying is really a change in tone. these sanctions do not look that different, but they are a first step and we will be tougher. the question is how will iran respond. this may just antagonize them further to continue their development of these ballistic

missile technology and there is no sign they will stop their role as a major player in the region. vonnie: nick wadhams is there from our washington bureau. thank you. super bowl 51 -- super bowl li is just two days away. we spoke with jason robbins ahead of the big game. let's take a look at stocks that are moving. we see financials higher. this is bloomberg. ♪ ♪

vonnie: this is "bloomberg markets." fanduel announced plans to merge back in november. the two have been uncharacteristically quiet on the matter. caroline hyde spoke to jason robbins to get an update. jason: when i spoke with bloomberg in the beginning of the nfl season i talked about a .ew product called leagues

it is meant to create groups of friends who could then play contests against each other. a lot of feedback from customers was they really like playing on a draftkings, but would be more fun if they knew the contest was only against their friends and maybe not people they did not know and they did not have to worry about not having people they were friendly and comfortable with. we launched to this product and it blew away our expectation. we saw a big jump year-over-year of games of people playing with their friends and it is something we want to build upon and grow. carolyn: 57 million people playing these sports. jason: we are still relatively small. we have 7 million registered users and about 40% have played pay games. we are still relatively small and that is one of the reasons we are excited about the future. i think the next wave will be about capturing the group that

wants to play with friends. caroline: you are going to be merging with fanduel, that is still going through antitrust regulation. can you give us an update on where you stand with that regulatory clearance? jason: we are working to get and that is the ftc something i probably shouldn't get too into because lawyers will get upset. i can tell you it has been well received by consumers. everyone is excited because there have been so many things we have been asked for by our customers, things we want to do that are innovative and that i think are really going to transform the game and make it so much better and so much more exciting. we just haven't had the resources to do it. both companies have been double paying for so many things in the meantime. certainly recently a lot of lawyers in that category and it doesn't make sense when you know you could be driving innovation faster. you know you have customers that

are desperately seeking experiences and you want to get them done. the hard part is having the resources to execute what you want to do and what gets me excited about this merger is we will be able to develop -- deliver a better product to the customer. caroline: amid legal fees doubling up, they might be needed to persuade that you will not own too much of the digital fantasy space. how much of the market would you own together? about 95% or something? how are you convincing them you won't be too strong in this category? jason: it is about 57 million sportsplaying fantasy and most of those people are playing on platforms like nfl and espn and yahoo!. while the daily version of the game is relatively new, there is no reason those other companies won't jump in as soon as it gets bigger. lisa: that was jason robins with bloomberg's caroline hyde.

still ahead, michael mckee will interview john williams in the next hour and we are going to be speaking more about some of the controversy over super bowl ads that have come so far. vonnie: a little bit of breaking news. the u.s. revoked more than 100,000 visas since the travel order. 100,000 visas revoked since trump's travel order. that was from the white house press briefing and sean spicer. this is bloomberg. ♪

lisa: it is 1:00 p.m. in new york, 6:00 p.m. in london and 2:00 a.m. in hong kong. vonnie: welcome to "bloomberg markets." ♪

from bloomberg world headquarters in new york we will take you from washington, d.c. to san francisco and mexico city in the next hour. here are the top stories we are watching. you are looking at live pictures of the white house. we are waiting on the president signing executive orders and that meeting with the ceo of strategic and policy council also finishing. we will bring you details as soon as we have them. banks are leading the s&p and the dow higher. , wells,america, citi jpmorgan all rallying as president trump expected to sign the order rolling back rules. michael mckee will interview san francisco fed president john williams.

we are halfway into the trading day and we gave you a sneak peek of financials and abigail doolittle will give more details. abigail: what a rally we have. the dow is up the most of the three major averages, up nearly .9% back above 20,000. of the for the best day year. the s&p 500 is having its best today in about a week. .4%,asdaq is lagging, up but undoubtedly the best day of the week considering we had 30 -- pretty big losses. we are looking at mainly weekly declines with the exception of the s&p 500. as for what is helping, we are looking at earnings winners, the amgenmgen -- visa and beat on quarter earnings. for visa and amgen they are talking about about 16% revenue

growth. is also nicely higher, one of the positives out of that quarter. finally, cypress semi conductor up 7.6% on a nice earnings beat. --organ, bank of america and america, wells fargo, financials are the top sector and on pace for the best day of the year since the beginning of december and behind this is the expectation president trump is likely to sign an executive order that will review dodd-frank and the fiduciary someand could perhaps, investors think this could give companies more leeway. despite the fact yields are lower, banks are higher. one greg on the day is amazon -- drag on the day is amazon. they missed revenue estimates ever so slightly.

the worry here is the first quarter sales guide it disappointed and fell below street estimate. many analysts are worried about amazon spending too much. they have a habit of spending for future growth. the thought here is that could put pressure on margins. 3%.stock is down very interesting, the dollar now down for the sixth week in a row. this is a very big move for a currency. it comes as president trump and the white house has said they favor a weak dollar policy. we certainly have that weak dollar. this is the first six-week drop since 2010. certainly a story to keep an eye on. lisa: thank you so much abigail doolittle. let's get a check on the bloomberg first world news this afternoon. mark crumpton has more from the newsroom. mark: the united states has imposed new sanctions on iran over the missile test.

the treasury department came out with a list of 13 people and 12 companies or other entities facing new restrictions for supporting the missile program having links to terrorism, or -- backing the revolutionary guard. in paris, there has been an attack outside one of the world's best-known museums and france's prime minister said it had the characteristics of terrorism. ehe soldier outside the louvr opened fire on an attacker with a machete. the attacker was wounded and has been arrested. inside were taken to special safe rooms. theresa may will carriage a message -- carry a message from president trump. he will tell leaders he will support nato, a military alliance he often called obsolete.

theresa may will brief colleagues on her impressions on the man that many view with suspicion. -- gun restriction is one of the first regulations targeted by congressional republicans. the house voted to disprove a rule designed to prevent people with serious mental health problems from buying guns. gun right groups and some mental health advocates say the rule is too broad and violates due process rights. global news 24 hours a day, powered by more 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. thanks. president trump is set to sign a sweeping review of financial regulation, the dodd frank act. here is the president moments ago with the council. president trump: we expect to be cutting a lot out of dodd-frank ,ecause i had so many people friends of mine that cannot get money because the banks won't let them borrow because of the

rules and regulations in dodd-frank. we will be talking about that. vonnie: we also heard from national economic council director gary cohn. he told us what parts of the law they are looking at. gary: we are going to attack all aspects of dodd-frank. deep, liquid,bout transparent and orderly market. vonnie: joining us now is bloomberg's senior finance reporter and michael, the key architect of the dodd-frank law. let me get the view from 12,000 feet. why is dodd-frank in the spotlight? away.has never gone republicans were always opposing big chunks of it. they never liked it and once they got a hold of congress they repeal it, but

they haven't managed. now that there is a republican congress and a republican president, the efforts are coming back. lisa: do you think that if certain parts of the dodd frank act are repealed that the financial system in the u.s. moves closer to having another crisis? michael: i think the financial system in the united states has gotten safer and fairer under the dodd-frank act and these efforts to dismantle, to attack, to kill consumer financial protection, to weaken investor protection, to reduce the ability to regulate shadow banking, i think these measures are likely to cause enormous harm to the economy down the road. lisa: when will we start to see the effect of this? will we get a pop in the beginning as banks go into making more loans and potentially riskier businesses even before what you are talking about, the consequent is our felt?- our felt -- are

michael: i don't think this is about the financial sector making more loans. financial regulation should be about a strong, innovative economy for all of us with protections and a financial system that will not blow up and harm the economy. i do not think it is about getting a pop. vonnie: i was going to say given that we know he is signing an executive order, whatever the impact of that may be down the line, what are the parts you think r targets of both -- are targets of both? michael: they have made it clear they will try to weaken the consumer protection and get rid of the anti-conflicts rule. the house and senate have already gone after this provision that oil companies disclose payments to foreign

governments. as we start to see the shape of these orders and frankly, it is quite disturbing. they are reducing transparency in the system and reducing guard rails that are going to keep the system safe and i think it is really quite upsetting and disturbing to see the kind of attacks on investor and consumer protections that are so critical for so many families around the country. lisa: i want to get your view, yelm and y --alman. the banks have undergone pretty substantial fines since the financial crisis. you think the risks are already displayed to such a degree for these banks that they will act responsibly regardless of what the overarching regulation is? thean: some regulations banks have not opposed and have been glad that they came forward because those actually made them look inside their own souls and look inside the controls that were probably not there.

i talked to a lot of bankers in the last several years who said thank you god -- first we complain about this, but it actually made us look inside and see certain things we were not aware of and some of it relates to money laundering and other controls. so many scandals erected and banks said, -- so many scandals erupted. they put in new compliance regimes to make sure they don't mess up again. because the fine scare them away. if those go away, will they really just say let's go and party? probably not. some risk will definitely come back. the more you relax, some of the risk will come back, but never as bad or crazy as it was before the 2008 crisis. vonnie: how do you think this will go down on main street? michael: i think if you go around the country and talk to

families around the country, they are not worried about the local rule. they are worried about making sure they can safely get a mortgage. if you talk about a military family, they are worried they will get subjected to abusive payday lending when their loved one is fighting overseas. if you talk to students, they are worried about protection for student loans. if you talk to workers and retirees, they are worried about their retirement savings being protected. i think it is totally the wrong direction to take this country to weaken the consumer and investor protections everyone fought so hard to build. vonnie: our thanks to bloomberg seamen -- reporter -- ance you are looking at live pictures of the white house and we are awaiting the signature on executive orders. we will bring you the details when they come. jumpingo retailers

today. the canadian department store in early talksis with a macy's -- takeover. and how they are reacting to a potential border tax. this is bloomberg. ♪ ♪

vonnie: this is "bloomberg markets." lobbyistsalition of for walmart and energy makers proposed tax on imports. the ceo of the american apparel now on why he us believes it could harm his

industry. it is very complicated for the apparel and footwear business. let's start with this bat and why it might be a bad thing. >> it is kind of interesting in the apparel and footwear industries. we are 98% imported and it makes it very difficult. the whole discussion becomes very difficult. the hot names in the industry were bulging obama and now it is cabana and nownd they are brady. new view onlican how to run the economy. there is a provision in it called the border adjustability tax and it has our industry, i would say crazed is a good word, we are upset and concerned and we want to see this on the bargaining table.

we want to talk. es left the -- hors barn years ago. vonnie: what about the idea that we become that we are becoming more protectionist -- that we are becoming more protectionist? it is not just the luxury -- wery members of your need immigrants to work in these areas. >> it is not just one sided. in order to get a perspective, you have to look at the apparel industry in america. more than 50 years ago, philadelphia was the center of apparel. if you go back 20 years ago and 47% was native american and 10

years ago it was 10%. 2.7 percent is made in america. we like to help bring jobs back to america. we will do everything we can to do it, but this becomes a very difficult situation. vonnie: brill us to clean, how much -- realistically, how much can be brought back? if they all come in, do you see manufacturing growing or shrinking? rick: i think our members would agree there are things we can do differently in america and things we can do more of in america. the idea of totally reversing this based on history i just gave you is an improbability at best. the reason everyone is concerned b.a.t. is very simple. right now you get taxed on

profit. under that, it is no longer do dockable. deductible. under the new program, let's say six dollars to import it, one dollar in profit, your taxes went from $.35 to $1.40. that means prices have to go up 15% or 20%. look at theou luxury side of things, we see constantly headlines about things happening, ricardo at barney's.ges we are looking at macy's potentially being bought and that is not even luxury. what is the future for luxury fashion in particular under a trump administration? rick: consumer confidence is good and we know we are in a spot -- in no spot of being over

retailed. the jobs report was actually pretty good, 18,000 plus in our industry alone. you also heard at the same time ,et seal closed their doors sports authority, i can go on and on down the list. a reconfiguration is going on. vonnie: how many bankruptcies the you anticipate if there is a border adjustability tax brought in? rick: i hate to talk about the word bankruptcy. i think it is possible if you havehat amount of people two choices. you either raise selling price where you go bust because your tax will be higher than profit. you cannot survive under this. speaker ryan has said he is not targeting anyone industry and i do believe that, but our industry feels targeted. it has been said that maybe this is something that

works for some industries and not others. in other words, maybe the president can leave out the apparel industry. what about those trying to make this their selling point? . am thinking new balance american apparel went into bankruptcy and that may have been a different situation. is it possible to make things in america and sell them at a higher price point? rick: it is possible. remember, a lot of the jobs left because of automation and osha rules, they left for different reasons in our industry. you can bring some of it back, but america -- president obama used to say we are 5% of the world's population, but we are big consumers. 70% of the gdp is consumables. our high and designers -- high end designers

under threat? rick: i would not single out any part. you can make what you can make in america. the rest you have to make in the best place to make it and this b.a.t. tax will interfere with that and we have to work hard to make sure we keep the fashion industry in america alive and well. vonnie: rick, i hope you come back when we have another update. he is president and ceo of the american apparel and footwear association. president trump signed executive orders in the oval office. that was a little bit earlier on . we are going to bring you pictures as soon as we have them. he had promised executive orders on regulation and fiduciary rules. he signed a directive related to dodd-frank and also signed a directive related to the fiduciary rules. those directives we are waiting for have been signed. this is bloomberg.

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vonnie: this is "bloomberg markets." president trump signed executive orders in the oval office today. vonnie: we got details about those executive orders. assigning the first of two executive orders on financial regulation related to dodd-frank and a second related to fiduciary rules. we will get more details on those and hopefully kevin will get details. he is on capitol hill. have you heard any more about these directives? kevin: the fiduciary executive order just signed by president trump instructs the department of labor to halt regulatory -- the regulatory schedule ahead of

the deadline that would implement these fiduciary regulations which progressives argue would allow -- require more regulations to have financial advisors work in the .est interest of their clients critics of the proposal, including the white house as well as republicans and some democrats, argued that this creates more regulations and stifles access to low and middle income americans to the financial advice industry. this is a big victory for the financial advice industry. this is something they have lobbied against in the obama administration. lisa: did we get any color at all about what president trump would like to see removed from the dodd frank act? gets: this is where it interesting. he is holding the treasury department from implementing any new financial regulatory rules, but what he is also doing -- i was speaking with the chairman

earlier today, he is keying up for congress to address and walk back key portions of the 2010 dodd-frank bill, already receiving pushback from liberals washington, especially senator elizabeth warren coming out against these actions. sean spicer saying at a briefing earlier today that they are going to correct aspects of dodd-frank. he did not say they will repeal all of it. we will beey tweak watching as the house begins to pass legislation setting up to walk back parts of dodd-frank. the senate likely will not take as bullish of an approach. lisa: have we ever seen executive orders like this signed by a president in history? kevin: republicans in the last administration criticized president obama for taking too

broad of executive actions and not going through congress. i will make a point that a lot of these executive orders, not all of them, but much of these executive orders we have seen in the first two weeks of the trump -- are juston's rhetoric that have -- that put pressure on congress to pass agenda.gislative in --: i want to bring from the white house. it has been a busy morning. he was at the meeting of the ceos. what did we learn from that? breakly, we are going to back. >> over here. great shot.

president trump: today we are signing core principles for regulating the united states financial system. >> what we are doing is we are returning the american people, low income investors and retiree , control of their own and -- retirement savings. it has been a labor of love for over four years and this is a big day and a big moment for

americans. president trump: she means that so much. chairman, i think we should hand the pens of this very special person. >> thank you. i am grateful. president trump: all right, guys. >> thanks guys. that question you heard the answer to just then was specific to iran. iran and saidbout "they are not behaving."

there were two executive orders on fiduciary roles and dodd-frank. we have kevin on capitol hill and a reporter outside the white house. let me go to you first, we solve two executive orders both to do with the president seem to be extraordinarily happen -- happy that this is going to happen. will this have any teeth? >> it is a good question. he has gone to sign executive orders -- make a show that he is listening to business leaders. these executive orders will start the process for having teeth. he will start the process of reviewing the dodd frank act and taking action in the future about how to reduce its impact on the financial services sector, and also the fiduciary role, as kevin mentioned, was supposed to go into effect in april.

because he signed the executive order, it is more likely we will not see the role of lamented in the way president obama thought it would be when he pushed for the rule to be moved forward last year. lisa: kevin, there has been talk that president trump is moving quickly with these executive orders and a variety of proposals. is he really? kevin: i think he is making his case to lawmakers on capitol hill to get the ball rolling. the house committee services eberly told me he anticipates the legislative process to move bills out of the committee on dodd-frank to begin within the next several weeks, but he also told me that he understands the process are led by his counterpart, and it could take a bit longer. what was interesting in the video we just watched out of the white house of president trump signing executive orders, he works specifically and praised

and wagner, a conservative on the house financial services committee, who was one of the driving forces behind the fiduciary issue. earlier this morning, gary cohn, one of the chief economic advisers at the white house, met with wagner and chairman answer link -- hence are linked to lay out a strategy for how they will begin to crack -- pass those laws to walk back dodd-frank. what the image of the white house shows is they are working in lockstep with the administration for everyone to get on the same page. i have to wonder, there are rules in place, but also a lot of soft rules that different branches of the regulatory body in the u.s. implement. i mean, how much could there be an immediate response due to president trump of non-enforcing certain laws that have been enforced by the treasury

department, the fed, and others? remember theave to federal government is more like an ocean liner. it is not easy to make specific changes that have an impact right away when you have a huge bureaucracy -- career service that have worked under presidents from both parties, and it is not something that one president can change on the turnabout dime. president trump is starting to learn that and see that in a number of different ranches of government, specifically in the financial services and financial regulations era -- area. he will see changing all the things that happened over the last eight years is not something that can be done right away. it will kick a lot of time, comment periods, time of conversation both with stakeholders on full-size of the argument. this will be a process -- a working progress, and it will take a wildly for a lot of these goals the president has are put in place. vonnie: well, kevin, we see financial shares higher, and

disease is the best performer in the dow. jpmorgan up 3%. the list goes on. we imagine the people at the strategic and policy council meeting today will have the ar stevet's e schwarzman. -- and it is led by steve schwarzman. will this be broadly led by banks? kevin: the signal out of the white house is they are trying to make the case that the regulatory policies will be good, not only for large financial institutions, but also for the middle class. we heard this earlier coming from several administration officials from the white house, including in bloomberg's exclusive interview with gary cohn earlier this morning where they have essentially said the dodd-frank law did not do anything to address too big to fail. let's be honest, democrats would vehemently disagree with that

detection, but the fact they are using that populist rhetoric signals they do at least understand the political climate, if you will, that quite frankly helped elect president trump to the white house. a lot happening behind the scenes. a lot of ceos dealing with the fallout from grassroots groups against this president, but also these ceos and sea level executives facing a political reality that this is an administration who has signaled they are ready to sit down with them and talk about the regulatory environment that many of these ceos lambasted in the previous administration. vonnie: i want to thank both of our reporters, kevin cirilli on capitol hill, and toluse olorunnipa, outside of the white house. i want to recap some of the headlines -- a couple of executive orders signed by the president. we brought you pictures moments after the signing happened.

the first of two on financial regulation was related to dodd-frank. the second was the fiduciary rule. rules, as wallk street was hoping the president mike duke, and will have to see, really, how much teeth -- mike duke, and we will see really, how much teeth these half. lisa: ordering congress to roll them back. vonnie: exactly. minutes wereeserve this week, and when will they move? michael mckee has an exclusive interview. michael: we are pleased to welcome john williams, president of the san francisco fed to bloomberg radio and television. a few for joining us. when is the nest -- when is the next rate increase national consensus view on wall street is the week wage growth makes march a nonfactor, that june would be the earliest you would move? do you agree?

john: i do not agree. all of our meetings are alive. we would be happy to analyze all the data. dataer overreact to any point that changes month to month and gets revised. my own view is the employment report was consistent with what we have seen over the last year -- good job growth, study improvement in the economy -- steady improvement in the economy. the other perceived wisdom is you cannot move in march because you not know what the fiscal policies will be coming out of washington. john: i disagree with that, too. there is uncertainty about fiscal policy this year, next her, but i look at where we are today -- essentially full employment, deflation movie that to 2%. i think given where we are today and the process we are making, we actually can make decisions based on that, without actually knowing what happens in terms of fiscal and other policies later in the year. michael: the current median

forecast is for three rate increases this year -- something you have called a reasonable expectation. if you do not move in march, do you start to run out of time -- in other words, is there an advantage to going sooner rather than later? are, theen where we labor market, the momentum, there are arguments for moving earlier rather than later, but i do think i would not want to be too timid, or delay too long this path of rate increases. i think the economy justifies a gradual pulling back on monetary accommodation, if you will. let's take our foot gradually off the gas. its economy is proving they can move at a steady rate, which the inflation goal, without as much monetary stimulus as we have been given -- giving. herael: janet yellen in january conference and the economy does not need a lot of fiscal stimulus right now. do you worry we might get too much? john: in terms of full

employment and inflation -- there are a lot of things that affect that. we will be watching those and analyzing those in terms of the economic outlook. my view is fiscal policy in general really should be focused primarily, at this juncture, on long-term issues like productivity growth in terms of infrastructure and other things that can really affect the longer-term outlook of the economy. whatever happens in terms of the economy here in the u.s., fiscal policy developments around the world, we are just going to be focused on achieving our goal of moving monetary policy to do that. michael: there is a school on wall street and elsewhere that says you should not raise rates because the economy needs additional stimulus, and they look at the history of the phillips curve model the fed uses, and say you cap rates at zero 47 years, and did not get yearsion -- for seven

and did not get inflation, basically the phillips curve does not work. phillips curve has died many time. my view is if we push the economy too hard, for too long, inflation pressures will build up. we see some of those. i think we are in a good place. we know the economy runs too hot, too long, you will see in balance, inflation pickup. we do not want that to happen. we know from the past high inflation is damaging. we want to avoid that. michael: lately, several of your colleagues have said the balance sheet might change -- is it likely you would stop reinvestment this year? john: it depends on how the economy is doing, and how we would assess the economic outlook. the awful mc has put out -- the fomc has put out statements in the past that we plan to put off the rebalancing of the balance sheet until normalization is

underway. we are not there yet. if the economy continues to perform as it has been doing, and we have something like three rate increases, we would be moving closer to a point where we will have serious discussions around when to stop reinvestment in our portfolio, and how to best do that. that is not happening right now. i think over time, it will be part of the mix of the normalization of policy. michael: would you say you get the three rate increases out of the way before you turn to the balance -- balance sheet? it is something me and my colleagues will discuss, and i hope provide clarity about what but,an by "well underway," again, it would be done in the context of an economy that is doing well, achieving our goal, and where monetary policy and terms of feds funds rate has moved up. michael: before we begin, the administration announced plans to start rolling back

dodd-frank. has regulation stopped bank lending, hurt the economy? unintendedre always and intended consequences of any kind of reform. there are definitely areas where some of the regulations may have spilled down to smaller community banks, other banks, in ways where people should be thinking about if that is really the best regulation. my focus is i do not want to see a replay of the last decade where we had in him is built up of risk and leverage in the financial system, ultimately leading to the near collapse of the financial system, and causing millions and millions of people to lose their jobs in a very, very slow recovery. we do have a strong financial system, strong regulations and supervision's of that financial system. that is really what i am focused on. michael: couple other physical items -- you represent a heavy trade district. our business leaders worried

about the possibility of a trade war or something going wrong on the trade front? john: we are on the west coast of the united states. we trade a lot with the rest of the world. it is an important part of our economy. there is uncertainty. that is not a surprise. people are asking what will happen in terms of tax and trade policies. right now i would say people are uncertain and concerned. hopefully we will get more clarity about that through this year. it definitely is something i hear a lot from my business contacts about things that are affecting their decisions. michael: one district-specific visas, the-1b administration has suggested changes might be coming. very important to the tech firms in your area. what i will not opine on congress or the administration should do on a policy, but this is an area of the country where people, highly skilled workers from around the world have come, started businesses -- entrepreneurial spirit out here. so, i have always viewed that

bringing people from around the world together is really one of the important parts of the success of our dynamic economy out here. i hope that can continue. . michael: the tech -- hope that can continue. michael: the tech center -- sector, are you hopeful with the changes coming out of the economy? the tech sector is powered by its own fuel, in a way. it is a center of innovation. new ideas change by way of disruption. as ofre not as affected the present economy. they are affected, but they have so much dynamism, that will overpower discussion you hereby different policies. i am pretty optimistic -- here about different policies. i am pretty optimistic about new innovation coming out of the sector. it is an exciting time. we are worried about is their

bubbles, or things like that, but right now i'm pretty optimistic. michael: john williams, president of the san francisco fed, thank you for joining us on bloomberg television and radio today. vonnie: michael mckee with san francisco fed president john williams, and you guys moved the curve -- i want to show you where the five-year yield is trading right now. yield and a 10-year two-year yield on those comments from the federal reserve's john williams from san francisco. president trunk builds his -- why it president trump builds his wall, the u.s. will pay for it one way or another. this is bloomberg. ♪

vonnie: this is bloomberg markets. i am vonnie quinn. lisa: and i am lisa abramowicz. the trump administration is looking for ways to pay for its wall along the u.s./mexico border, but getting mexico to pay for it might be a losing battle. iner cory crunch the numbers the latest "bloomberg businessweek," and joins us now. i love the lead -- either way -- they proposed to methods, one, a border tax. peter: one is a border tax, and the other is a border tax. lisa: will either of them pay for that wall? peter: certainly not completely. the very fact people are so confused to complete the understandable given the fact that the term border tax has been used for two completely different approaches. lisa: what are they? the first is a tariff --

what everyone else would call a tariff -- a tax on imported goods. the revenue from that supported lingwood go to pay for the wall, but then who pays that tax? m 101 -- in in eco theory, if the mexicans cut prices to maintain market share so the price american consumers paid even with the tax added on was the same, in effect, mexicans would be paying for the wall in some sense. on the other hand, if prices go up because of the tax being added on, americans will pay for it. the likelihood is it will be somewhere in between, but then that effect would be less commerce between the u.s. and mexico, which is not good for either country. a comparison -- other countries have done this before. . peter: tariffs used to be much higher. international commerce was much lower.

the fact tariffs have come down dramatically since world war ii has been good for generating more wealth around the world. vonnie: but even since the era of globalization has come in and has gotten -- i do not want to say thrive, because that puts a spin on it, but has gotten more excessive -- has -- have countries tried since then, or is this the beginning of it? peter: there are negatives to globalization, but the idea that we would put up high barriers between two countries -- not a good thing. tax,ood, the other border it is what everyone else would call the border-adjusted tax -- a value-added tax, used in europe and other countries. phraseoes not like the adjusted, so he called it a border tax, hence the confusion. vonnie: a consumer tax either way. lisa: does not like the word. get rid of it.

vonnie: peter couric, you can read his story in the latest "bloomberg businessweek," and you can hear more of the reporters every saturday and sunday on bloomberg television. coming up, we look at companies advertising in the super bowl -- why they are treading asked -- extra careful this year. they are looking to avoid offending anyone. this is bloomberg. ♪

vonnie: this is bloomberg markets. i am vonnie quinn. lisa: and i am lisa abramowicz. with an audience of more than 100 million tuning into sunday's super bowl, advertisers want their commercials to get attention, just not the wrong kind. jerry smith has been covering the story and joins us now. what springs to mind is the anheuser-busch spot, that gains

attention for highlighting an immigrant's story. can't people even talk about immigration? what is the controversy? jerry: budweiser saying this is a commercial about celebrating their founder, an immigrant. it is a coincidence where they have created this commercial at the same time the president has created this very controversial executive order on immigration. mean, part of a successful commercial is offending someone a little bit. lisa: getting attention, at least. not being boring. vonnie: have you seen the ad? are there any that could not be seen as offensive? jerry: the brands are afraid to ruffleeathers. a brand like godaddy, which had been controversial for years, they did not participate last

year. the trend is for advertisers to try not to offend people, and now you are seeing some brands that are touching on topics that president trump is an acting policies around. if you look at avocados from mexico, for example --president trump has proposals on a border tariff. vonnie: there are opportunities, like when the ice hockey team put up 1.5 million viewers on their jumbotron, and it was not particularly hilarious -- it was not particularly offensive. gerry: i think you see more celebrities and singing and dancing animals. coca-cola had a commercial where it people about different diversities getting together, and it sparked a backlash where people were tweeting "speak of america -- "speak american." to uniting message could upset people. lisa: how long could one of

take to make? gerry: a long time. they take months or longer. and they all sold -- it is not like people did not go for it anyway. fox had aney, unusual amount of advertising left as of last weekend, and they were scrambling to sell out the advertising. vonnie: there was an effect. gerry smith, we will have you back to review. secoutspoken former commissioner gives his reaction to president trump's executive orders on dodd-frank and the fiduciary rules. this is bloomberg. ♪

scarlett: is 2:00 p.m. in new york. i am scarlet fu. oliver: i am oliver renick. welcome to bloomberg markets.

scarlet: we are live in bloomberg world ted cruz for the next hour. here are the stories we are following. rolled backump executive orders. we hear from someone who helped write the rules -- in markets, u.s. stocks are rallying, above 20,000 for the first time in a week. employers adding the most workers in four months. in business, a possible takeover in retail -- hudson bay is reportedly in early takeover talks for macy's. u.s. markets close in two hours time. let's check where equities are faring. abigail doolittle, are we above that level? abigail: we do remain above that

rally. 20,000, onback about pace for its best day since the beginning of december. the s&p 500 is having its best day. nonetheless, we are looking at a very nice day for u.s. stocks, especially after the choppy trading we have seen this week. since the first real risk on day for the financial markets. we look at the asset classes and the fix. it is confirmed -- the vix and the fear gauge falling as the sox fear a rally. ---- ther and the rest dollar and the yen falling. as for stocks on the week, we are looking mainly at weekly declines. the dow down about .2%. the s&p 500 slipping, right around even between small gains and losses on the week.

it will be testing to see if it finishes up or down on the week. the nasdaq in the same position, to the downside. overall, we are looking at the client. one stock on -- declines. one stock on the move -- lockheed martin is popping nicely higher on the news the company did win an $8.2 billion f-35 contract after trump intervened and try to bring costs lower, about a hundred $78 million less than the previous contract. million less than the previous contract. thank you. oliver: companies in the newsroom. mark: the united states has revoked more than 100,000 visas since president trump ordered a ban on travel from seven middle eastern nations according to a

government lawyer that spoke at a hearing in virginia where a federal judge ruled the state can take the lead in a civil lawsuit claiming the travel ban is unconstitutional. the judge also extended a temporary restraining order barring the federal government from enforcing the ban. in paris, french president france while on says there is no doubt an attack outside of the world's most famous museums was terrorism. an attacker was wounded and has been arrested. he is described as a 29-year-old egyptian citizen. controversialp's choice to be education secretary has cleared a major hurdle in the senate. her nomination moved ahead in an unusual early-morning vote. a final showdown vote will take place next week. two republicans have said they viceoppose her, means president pence may be needed to

break a tie vote. a dr.ations to release that help the cia pinpoint osama bin laden is gaining momentum, according to fox news, which says the doctor could be released as early as may. he has been jailed in pakistan for more than five years. fox, citing multiple sources, says there is renewed willingness to figure out an appropriate time and means to have the doctor, whose health is said to be in decline, discharged. i am mark crumpton. this is bloomberg. oliver: moments ago, president trump signed two directives aimed at stopping -- rolling regulations put in place. joining us, bart chilton, former chairman of the commodity and

futures trade commission, joining us from little rock, arkansas. thank you for joining us. what was your reaction, looking at some of the language, and ultimately the directives that came out of the white house today? bart: well, thanks for having me. i think it would be a monumental mistake to rollback the law. there are some parts of it that could probably be redone and fine-tuned, but by and large, this took care of unregulated markets that caused the 2008 calamity. remember, it was not the regulated markets like the cme group, in chicago, or even the new york stock exchange. they have operated brilliantly. it was the over-the-counter markets that were unregulated, and these huge, risky bets took place among these entities that were too big to fail, and we had to bell them out. title not think we had -- want to go back to those days where we had these systemically important institutions on the

cost of being bailed out. that would be bad news for many people who voted for mr. trump, and a lot of those that did not. scarlet: they are not saying they will roll back everything and bring us back to the structure in place before the financial crisis either. talk about the parts of dodd-frank that are working that perhaps does not get as much play. bart: the key one that is working is the one i did mention --regulation of over-the-counter derivatives. that is working brilliantly. in fact, our model that we wrote in dodd-frank is being duplicated throughout the world, particularly in the eu. we are harmonizing regulations. i would hate to think what would happen if we step acknowledge -- step back now. all of these financial institutions operate around the world, 24/7, 365. the rules in place. people are used to the. to pull them back now, might be

madness. it might be great politically, but ask to people, republicans and democrats, and i have talked with some of my former republican colleagues, they think things are working pretty well. i think so far, so good. yes, we can fine tune, but don't want to go back to the days of unregulated over-the-counter markets, certainly. bart: -- oliver: this talk about the specifics -- it is a different financial market -- environment now than it was four years ago or six years ago because of regulations. thanks have shifted efforts elsewhere. when you look at the market, one asset classes, particular markets are the ones most in need of regulation? bart: i am not sure -- i think dodd-frank did a pretty good job. by the way, only about 80%, at we didage at the cftc, over 90%. i hope to write over 60%. they still have some that are not done.

there are about 20% of dodd-frank rules that are not done. key among those would be a governance will we never did, the sec never did. i think it is possible you could go in and fine tune some of the things, particularly as it relates to community banks. breaststroke with all of these. we have a large investment banks that were a problem in 2008. i fear that maybe we went too in dealing with community banks, particularly those below $10 billion in assets. 75% of the agriculture loans were made there. that is the one area i think the president might be on the mark with going to look at revisit dodd-frank. everythingthat, seems to be working pretty well, and if you asked businesses, financial sectors, they will say the same thing.

ofrlet: even supporters dodd-frank, including you, believe there is room for improvement. there are tens of thousands of pages of regulation. overwhelmingly, the perception of dodd-frank is fairly unenthusiastic. you do not hear people saying it is working the way it should -- there is always someone saying -- qualifying this could be better. why is perception negative? bart: it is easy to criticize all regulation -- who likes regulations? there is not a big cheering section. i will analyze, and then get back to your question -- you need food safety, regulations, transportation regulation, airline safety, car safety, and you need financial sector safety to ensure the rules of the road are followed. the one area is talked about with community banks, but other than that, you know, i do hear some complaints, but by and large, and if you talk to some of the big

financial institutions, they will say -- and i have done this many times, even some today -- don't change anything. we just got everything in line. we are just being able to do compliance procedures. we do not want to change now. we figured it out, finally. remember, a lot of these rules were a compromise between democrat commissioners like me, republican commissioners, those at the fdic, the fed board of governors -- so, from the law to the regulation, there was a lot that was done, and all those pages you talk about, those were needed because we fine-tuned a rather blunt tool in the textured them and with these regulations, which i are good for the american people, markets, and consumers, alternately. we talked to former goldman sachs ceo and head of

the economic tells a comment gary cohn. he talked about the book rule. let's run that piece. : we will attack all parts of dodd-frank -- volker rule, we also care about the deep transparency of markets. oliver: when you hear that -- obvious it, prop trading is practically nonexistent. if we start to talk about bringing it back, is that where we get into risky stuff? bart: here is the deal. i have worked with many banks for a long time, including any's old bank, which does excellent job, the same bank of steve mnuchin, and president trump, when he was a candidate, criticize that bank, but now hired two people from it. with regards to the volcker rule, the problem was some largest effusions were taking riskiness -- institutions were taking risky bets on their own,

and at the same time, giving customers divergent advice. they were saying get into this fund -- it is the new best thing . then the investment bank would take the opposite position. they got fined hundreds of millions of dollars -- i'm not talking about a specific bank, but there are several people can google. it has been years ago. hey paid their penalty, etc. that was a problem. it is one of the reasons some of the dodd-frank rules will put in place. they are still needed. i trust the individuals, but you have to have some decent rules of the road to ensure they are kept on the straight and narrow. oliver: bart chilton, great insight. thanks so much for joining us today. scarlet: coming up, as president trump takes steps to scale back financial regulars, we will hear from maxine waters, the top ranking democrat on the house financial services committee. from new york, this is

bloomberg. ♪

scarlet: this is bloomberg markets. i am scarlet fu. oliver: and i am oliver renick. the most ins jumped five months following reports there are early stage talks to acquire the chain. let's bring in the host of the bloomberg podcast, material world. macy's -- let's talk about why they are a target -- is it a function of their price, a good combination between the companies? are huge in the u.s., and hudson bay is the largest in canada, and where he could make

sense is from a realistic perspective. they are a wreath in its own way, and macy's is looking to optimize its real estate portfolio. they are falling on hard times -- when is the last time you shop that a macy's -- mall traffic is down, i have laid off 10,000 people. they need to find a way to grow scab -- they have laid off 10,000 people. they need to find a way to grow sales. scarlet: this is macy's, or macy's and bloomingdale's, because macy's the company owns macy's and bloom and does. not that oliver knows. oliver: you are speaking a different linkage. lindsey: we do not have any clarity. i am assuming it is macy's and bloomingdale's. oliver: macy's has active investors on their star board. how does that factor in --is this a debate have been pushing for? they have been pushing

macy's to monetize its fleet of stores -- it is something that hsbc did with the sex fifth avenue store. they mortgaged it and made money on it. macy's will shy away from doing anything that drastic. they would like to see a deal, but then they would really like to see macy's use some of the playbook in terms of monetizing real estate. scarlet: let's move to another department store -- nordstrom -- they will stop selling if anke branded -- evocative of branded clothing. the system that would happen regardless, but the election pushed over the edge? sold shoes.y also one of her earliest shoe vendors. the company saying this is only about sales. the shoes were not selling well. about 10% of the brands they change over all the time. ofre is an active boycott

ivanka trump goods. the people behind that boycott are claiming victory. i'm not sure you could say that. scarlet: keep us posted. lindsey rupp. oliver: coming up, president trump signs plans to roll back regulations. will be with us talking about that very topic. this is bloomberg. ♪

oliver: this is bloomberg markets. i am oliver renick. scarlet: i am scarlet fu. let's head to washington as president trump takes action on financial regulations. kevin cirilli is standing by with a top ranking democrat. kevin: i am joined by representative maxine waters,

the top democrat on the house financial services committee. a queue for joining us. i want to get your response to the fiduciary order. not all democrats supported president obama when he touted this. they raise concerns it would limit some folks access to the financial industry. what is your response on the president's decision to halt fiduciary relations? well, i was very much involved in supporting president obama's initiative on fiduciary. we received a lot of lobbying. as a matter of fact, millions of spent -- were spent lobbying because special interest in wall street weighed in heavily. they wanted to keep doing business the way they were doing it. they had a salesperson out there with conflicts of interest, out there, you know, getting people to invest -- seniors to invest in products that would not be of benefit kevin:.

kevin:but not all democrats were supportive, right? rep. waters: lobbying played a big role. money rolled in here like you would not believe. both sides of the were under the influence of the lobbying. i told you about an interview i had with representative ann wagner, earlier, a republican who was against president obama's fiduciary regulations. i shared with you that. let's play for the audience what she said earlier. isresentative wagner: what exciting that you will see come forward today is treasury being told to go back to all of the regulators in the financial services sector and tell them, look, pause -- what's take a look at these rules and regulations, and see what needs to be done. so, they are going to be involved in a big review. it will help us tee up choice. oliver: philly, congresswoman wagner sees this as an

opportunity for lawmakers to begin to pass a repeal of dodd-frank. what is your response to that? rep. waters: dodd-frank has been under attack ever since it became law. wall street does not like dodd-frank. do you have banks and financial institutions in this country who owned this place. they got whatever they wanted. there were no questions asked for the most part. dodd-frank basically weighed in after the 2008 meltdown in the country, where we went into a recession, people lost their homes, all these foreclosures took effect, and not only that, a lot of people lost money they had invested in 401(k)s, etc.. it was a horrible time. kevin: but community banks in smaller banks would argue this was too much regulation, it stifled economic growth, and there are some democrats in your caucus, even former nominee hillary clinton signaled she would pass some type of committee banking regulatory relief.

surely there has to be some type of relief you can work with republicans to pass through. rep. waters: let me tell you this, in dodd-frank, we absolutely protected community banks, and they do not have to be in tune with the regulations of the big banks. we excluded them from a lot of that, and members of congress continue to work with community banks. we have complaints about some regulation. we have done a lot. they are, unfortunately, under the influence of the big banks. so, the big banks don't want the community banks to receive special attention, so they keep them tied to them, in order for we do for community banks, big banks would like to have it, too, and we're not going to have that. wever: final question -- kevin: -- final question -- we talked about what republicans are doing to strategize they -- their agenda. what are democrats doing today? rep. waters: one of the things we're going to do is protect as

much as we possibly can the consumer financial protection bureau. this is about protections. people refer to this as regulations. we are talking about people that have been ripped off for far too long, who had been taken advantage of for far too long. bureausumer protection has been able to recapture billions of dollars to return to consumers who have been unfairly treated. we will continue to talk about that, educate people about that. we will let people know in these small towns who is putting them at a disadvantage. congresswoman that seem the top democrat on the house financial services committee. thank you very much. scarlet: think you, kevin cirilli. oliver: still ahead, the commodities close -- oil is moving onward the u.s. trade department is slapping a new sanctioning -- sanction on a run. we'll head -- on iran.

we will have more on that. this is bloomberg. ♪

from bloomberg world headquarters in midtown manhattan, this is "bloomberg markets." i am scarlet fu. let's look at the day's big movers. crude finishing the day higher.

oil getting a spike after the u.s. imposed new sanctions on iran. it has come off its better levels. we have the treasury department publishing a list of 25 individuals and entities facing restrictions for supporting iran's missile program. take a look at this chart. it shows a surge in iranian crude import. iran pumping the most since 2010, even as opec overall reduces output and that is the white line there. especially after the agreement late last year. quick note on gold. it's like higher after the what -- it spiked higher after the u.s. jobs report. sluggish wage growth reduced the arts of a rate hike in march. we will hear from bill gross of janus capital. oliver: let's check the headlines on "first word" news. mark crumpton is it in our newsroom with more.

mark: the u.s. has imposed a fresh round of sanctions on iran following confirmation from tehran that it conducted missile ballistic tests. 15 people and 12 companies are among the entities penalized for either supporting the missile program for backing iran's islamic revolutionary guard. and nationalmp security adviser michael flynn said this week that iran was on notice for the launch. iran says it doesn't need permission to defend itself. outsidening's attack the louvre museum in paris is raising concerns about the city's bid to host the 2024 olympics. yes all was the latest in a wave of violence that is left more than 200 people dead in france over the past two years. it happened just before the officials hosted a ceremony near the eiffel tower to mark the final summation to the international olympic committee. paris has not hosted the olympic games since 1924. defense secretary james mattis

has assured japan u.s. would protect it against all caps. he met in tokyo -- against all threats. japanese tokyo with president shinzo abe after a similar trip to south korea. administrationmp is committed to expanding defense ties with both countries. areers for el chapo complaining that his new york city jail conditions are too strict. guzman, was been imprisoned and escape in mexico,. today in federal court in brooklyn. his lawyers say he is on a 23-hour lockdown in a special gel unit. -- jail unit. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: thank you so much, mark. the u.s. added 220,000 jobs in january, which came in higher the estimated 180,000 --

estimated was 180,000. 220,000 was the reported number. a big disappointment was in wages. average hourly earnings was .2% shy of the year-over-year estimate of 2.7%. keene, billh tom gross called the jobs report schizophrenic. job growth is strong but wages revised down by .2% and instead of 2.7% annual, 2.5. i suppose that is good for corporate profits to wages down, but ultimately, it is consumers and consumption that drives the economy and if they don't earn enough money with the money is only growing at 2.5%, that is a slow growth economy. i can see how markets might interpret it one way or the other. tom: i want to bring this over to the bigger picture. temperatures up -- doubt futures up 95.ow futures

i like what bill said about the schizophrenic take. if we get reflation, is it reflation that gives us inflation boost, or can we actually hope that the real economy will boost with a trump stimulus? bill: well, sure, that is the hope, that real gdp, which is around 2% -- the hope is we are in a 3% to 4% real gdp economy. that was the promise from the trump administration and the hope in terms of fiscal policy, deregulation, and someone that we look forward to. i remain skeptical, i guess. i remain in the camp that productivity is the key to real gdp growth. labor force growth is less than 1%, so it is all productivity. what produces productivity? investment. investment hasn't been there, as

you have discussed for the past 30 minutes, and to the extent that it remains anemic, productivity will remain and indicate we are stuck in a 2% real gdp world, no matter what the fiscal stimulus and the regulation -- deregulation. tom: one of the economist shocks -- we have to remind ourselves that bill gross has an international perspective where the dollar dynamics are there -- hengreen of the university of california-berkeley, and he was adamant that trump will lead us towards dollar strength. are you assuming dollar strength? bill: no, i mean, the dollar has had a good rally, and certainly against emerging companies like the mexican peso, a significant one. i don't assume continuing dollar strength unless the fed stays ahead of the ecb. at the moment that is not the case.

both the central banks are still stuck on quantitative easing of significant proportion, and that andled to the dollar rally, that has led to stronger growth in the united states. no, i think there is catch up coming at the end of the equation from japan and euro land. their growth rates are close to 2% as well. dollar growth and dollar appreciation is certainly not assumed. i don't think we have a new accord ahead of us in which a strong dollar helps the global economy and we have to take significant measures. tom: does your monroe trader tell you you can buy bonds right now, whether foreign or corporate? yeah, i think to a certain extent, and the reason is, tom, the other central banks are buying bonds. the u.s. went off the habit, the qe have it come about two years

ago, but the ecb, boj, bank of england are plugging in 150 billion a month. that is a lot of money. that is basically $1 trillion to $2 trillion a year going into the bond market. in terms of arbitrage from you can move into treasuries from bunds at 45 basis points. basically 10 to 15 basis points. huge arbitrage there, even currency-adjusted. to the extent that you have 150 billion a month coming in from the central banks, it means the central banks are supporting the low-interest-rate environment. i don't like that, but you have to recognize it as an investor. tom: are you picking up dimes in front of a bulldozer? are you going to get run over by the trump administration doing your cute arbitrage? bill: you have to be careful.

we have the arbitrage between bunds and treasuries. i'm of the persuasion -- i talked about this last month -- u.s. treasury's at 2.6 is a critical area command that is a technical paper of interpretation, but it is a long-term trendline, time, going down from 1984 and it has been hit on the upside 7, 8, 9 times. 2.6 is critical, and if we get higher inflation and higher yields relatives of 2.6, we have a bear market. scarlet: that was janus capital fund manager bill gross speaking to tom keene earlier today. coming up, plans for an ipo amid a busy week in tech earnings. this is bloomberg. ♪

oliver: this is "bloomberg markets." i'm oliver renick. scarlet: i am scarlet fu. time for the biggest business stories in the news right now. democratic senators elizabeth warren and tammy baldwin are calling on gary cohn of goldman sachs to recuse himself from any decisions that could affect his bank in his new role as top economic advisor to the president. in a letter, the senators are demanding he pay taxes on $284 million on bonuses and stock holdings he received upon leaving goldman. banks will prove they can survive two guns as part about that exercise under dodd frank. signed antrump executive order today to scale back the 2010 law. stress tests include a 10% jobless rate and corporate lending to test the

resiliency of banks such as: and jpmorgan -- goldman sachs and jpmorgan chase. the falconsey is on another -- i'm not the patriots the sunday. the firm says it applies the same tools to evaluate money managers. that is your "business flash" update. oliver: let's check on the markets with abigail doolittle. looking at are nice rally for stocks today and the top sectors the financial sector. looking at the s&p 500, financials are right up there on top, having a beautiful rally, on pace for the best day since november 2014. -- november 14. in terms of the individual movers, we're looking at j.p. morgan, bank of america, citigroup, and morgan stanley. tons of green here. taste stanley is on

to close at its best level since 2008. the question is what its next for the financial sector. investors have been wondering whether the rally out of the election can continue or reverse. 5428, inook at g #btv orange we have the xlf. in white we have the 10-year yield. out of the brexit bottom we have this nice rally. certainly after the election, this huge move higher. a little bit of divergence between the 10-year yield an xlf, but mainly they are correlated. the relativesi, strength index, on the huge rally out of the election. the financial sector went right into overbought territory. we have seen a little bit of a move down from that territory, but starting to creep back up higher, which suggests, oliver, we may see a breather after this

big one-day rally. well, we don't know if it is a one-day rally, but this big rally today with financials. oliver: very interesting stuff, abigail, honing in on the financials. we have also had earnings results from apple, facebook, and amazon, with one of the biggest tech pronouncements in years. it was caps off today when president trump met with his business advisory council with one tech leader absent. caroline hyde is in san francisco. caroline: great to see you could dream team for this friday to dissect everything in tech this week. i have the executive editor of global technology, and of course, a reporter for bloomberg technology. i want to kick off with the notable absence at the advisory council today. elon musk was there. the ibm ceo as well. what do you think they were

responding to? such a tumultuous week in terms of tech with the travel ban. >> absolutely. it was a huge week. we are getting a strong picture of what trump's orders are going to be like, what is he going to be like as president, very much like the trump we saw before the election took place. tech has had different reactions to it. the travel ban sparked a strong reaction across the technology sectors, as you have been following every day on bloomberg. kalanick at the outset was criticized for not having as strong a reaction as people would like. he was you, because he was part of the council, is being too far in trump's corner, and that raised the hackles of a lot of his drivers and customers. #deleteuber trending. tom: everything he did with this

was criticized. he could do no right whatsoever. revealed that travis would not be part of this and not come to washington. he made the realization that it was more in his interest to leave the council and save the business he has been losing. we have learned that 200,000 people deleted their uber accounts, significantly higher than what happens in any given week. so they are net ads still growing. but 200,000 is a big number. car last nightr and my driver unprompted told me "i'm leaving uber, joining lyft," because of the politics of this. i asked about travis leaving the council. he said, "doesn't matter, worried about the ramifications." caroline: too little, too late. that was sort of like cloud. the silver lining in technology

and silicon valley this week -- sarah, the company you follow so closely, snap, the owner of snapchat, it is official. sarah: they went public. the filings were exposed and we got to see the revenue numbers and lack of profits. in fact, the loss was greater than the revenue. we got to see the user growth. we got to see how it has been slowing a little bit. caroline: $150 million. sarah: less than instagram, more than twitter. it is a healthy company. this is a company that has had an impact on how we communicate. we are sending things more visually now. we are talking to each other in a way that is a lot more raw and natural, not the polished images we have on instagram. --p is caroline: "we." tom and i -- [laughter] tom: i am not their target

audience. what is interesting from the filing is that they are setting themselves up to not be compared to facebook and twitter. now come i don't know if they are going to get away with that, but they don't want a friend themselves in the same way. they are not trying to conquer the world with their user growth. they say they only want to focus on developed countries with healthy mobile ecosystems where the video and image is going to work on the mobile phone. caroline: tom, it was a big week not only terms of ipo's being announced and the public getting into the nitty-gritty of the details, but the nitty-gritty of the earnings details from apple, facebook. apple -- break it down for us, significant pop in the shares. tom: people were a little concerned. were people going to go to the lower selling phone? the latest version of the iphone did very, very well, during that

crucial -- even higher end of the two. during that critical holiday season come this is when apple gets a lot of its sales. and they came through this time around. we saw a robust growth in the other earnings. facebook is another example where last quarter there was a little bit of concern about them talking about, hey, we're going to spend and invest. is this another amazon, where you just spend like sailors? given theook they are benefit of the doubt right now. sarah: we still saw more than 50% growth with facebook revenue, which was enough to keep investors happy for now. we saw a couple downgrades after the earnings hit as people are concerned about the future of increased spending. caroline: great to have your analysis throughout the week and today. snap ipoer on the buildup and tom giles, across everything this week. this is caroline hyde in san francisco. oliver: caroline, thank you so much.

later today, the ceo of drafting's will join the program to discuss the company's plans for the super bowl this weekend. scarlet: staying on the big game, from the energy some to hosting the super bowl, how houston successfully diversified its economy. this is bloomberg. ♪

oliver: this is "bloomberg markets." i am oliver renick. scarlet: i am scarlet fu. the patriots and falcons go head-to-head this sunday. for houston the super bowl is a chance to showcase how would shifted from -- how it shifted from an interest -- energy town to a more diversified economy. joining us is richard campo. he is chairman of the houston super bowl host committee. thanks for joining us. i'm sure you are busy getting

ready for the day. houston posting the super bowl this year. it hosted in 2004. the city has made a lot of big changes since then. tell us about the changes made to get ready for the latest turn on the international stage. richard: well, absolutely. it has been a very different super bowl since 2004. 13 years is a long time, obviously. 13 years, houston has added over one million people to the region. it has been amazing to me just in the downtown area, to give you a sense, $5 billion for new development. a lot of pedestrian-oriented roadways and restaurants, residential buildings, what have you. we have a new 12-acre park built a few years ago. we are having super bowl live they are, we expect to have over one million visitors go through that. the game is much bigger and houston has been much more diversified than the last oil

downturn, which we will probably talk about a bit. just a very different place. 6.7 million people in the region. while it is not booming right now, it is also not having major trouble, either. nfl still a the moneymaking machine, but making a little bit less money, and this year struggling with viewership. ensuree you doing to that the super bowl will not also be subjected to fewer viewers this year? well, the super bowl come when you think about it, the largest one-day sporting event in the world. mixed at 165 million people to watch worldwide. based on the enthusiasm of the crown center come to houston already, just to give you a sense -- crowds that have come to houston already, just to give you a sense, we have had half a million people go through super bowl live and the nfl experience since saturday. a lot of enthusiasm, a lot of energy going on with the super bowl. the super bowl has been in the

events since the beginning of tv. i don't think you will have a lower quotient for viewership. it has been incredible energy so far. scarlet: ric, let's talk about oil. below $50.15, it was what kind of effect do you see on development in, say, downtown houston? what kind of time lag is there from the oil recovery to what you see on the ground? ric: sure, so this oil situation has been really interesting for houston. it is definitely the biggest oil bust, if you want to call it that, that we have had in the history of our city. on the other hand, when you think about the economy and the effects on the economy, it was very muted relative to what has happened in the past. for example, energy lost about

30,000, 40,000 jobs in houston over the last couple of years, but those were more than offset with medical jobs, jobs in the port. the economy has been much more diversified. in 2014 we had 100,000 jobs created in houston. this year we will have 20,000. it sort of feels like if you are on a freeway and you are driving 80 miles an hour, at night with no traffic, it feels like we are going 30 or 40 miles an hour, but it has definitely not stopped. from a development perspective, develop has definitely slowed so there is fewer cranes and what have you. scarlet: all right, got to leave it there. we will take a look at the chances president trump for that dodd-frank reform through.

oliver: it is 3:00 p.m. in new york, 8:00 p.m. in london. i am oliver renick. scarlet: i am scarlet fu. welcome to "bloomberg markets."

oliver: we are live from bloomberg world headquarters in new york for the next hour. we will be covering stories from andington, mexico city, tehran could hear other top stories we we're following on bloomberg and around the world. u.s. stocks are rallying around the january jobs report. employers adding the most workers in four months. but wage growth slows more than projected. executivetrump signs orders on financial relations including a review of dodd-frank and what that could mean for the future of the banking industry. plus, we will have reaction from the democrats on the regular tory rollback. senator mark warner of virginia tells us whether reform even has a shot at getting through congress. with one hour away through the close of trading, let's check on the markets with abigail doolittle. abigail: what a rally we are looking at. green on the screen, something we are not seeing so much this week. a real risk-on day.

the dow is back about 20,000, an important psychological level. we have the dow on pace for the best day of the year, best since december. s&p and the nasdaq are nicely higher. and now the nasdaq, near session highs, is on pace for a new record closing high. real strength for stocks. in fact, the strength on the day has turned the s&p 500 higher on the week. this is a five-day chart. we see lots of the volatility earlier this week when it was bearish and then flat action, and then a nice move higher. .8 percent on the week. if the s&p 500 can hang onto these gains it should turn positive on the week. the nasdaq is trying to do the same thing. as for what is helping the markets today, we're looking at 2 big earnings winners, visa and amgen. both of these companies beat for the quarter. amgen, the strength was driven by the cardio unit, pretty bullish there. these are higher as the company reaffirmed the 15 to 17% revenue

growth outlook for the year. some investors thought they might have to cut that because of the strong dollar, but they reaffirmed that. also trading at a record high, similar to the nasdaq come even though it is not in the nasdaq. one of the big stock stories is macy's and hudson bay. accs trading nicely higher -- macy's is trading nicely higher, as sources say that hudson bay is in early talks to potentially take over macy's. hudson's bay is out of toronto, retailing committee. macy's is the struggling retailer that put up a disappointing holiday quarter. impacted byoes are the fact that the stock is down 15% from the 2015 peek at the thought is that hudson's bay can save macy's. 5776,e look at g #btv this is the market cap of macy's in red. macy's absolutely dwarfs

hudson's bay. typically you have the smaller committee taking over the larger one. not the case here. it is going to be interesting what does in fact happen here. scarlet: abigail, thank you so much. president trump signing an executive order for sweeping review of the dodd frank regulation put into place after the financial crisis. earlier today, national economic council director gary cohn, former coo of goldman sachs, told us which part of the law they're looking at. gary: we will attack all aspects of dodd-frank. volcker rule -- we care about deep, liquid, transparent, and orderly markets. ouret: joining us is senior financial reporter, talking the department of labor fiduciary rule that is under reconsideration at this point. how much can president trump get

done with the stroke of a pen versus what he needs to do through congress? alman: as you just said, it is a review he is ordering. cohn this morning when he was talking to us in washington what can be done without congress going along. certain things they can. there are several things they can do. one is the fiduciary rule that the biggest impact will probably come from trump appointing new people to regulators. the fed vice chairman for regulation, fdic chair, comptroller -- these people really set the tone for regulation. thanks complain a lot about -- banks complain a lot about capital. capital doesn't come from dodd-frank. and we have our own internal u.s. versions. those could change if we have people with a different attitude towards regulation that trump appoints to these agencies.

we will see. all these things take time. very little can be changed with the stroke of a pen. oliver: take some time to attack it on all fronts. say that what we did see with the fiduciary rule, what happens quickly, putting it on hold. supposed to take effect in april. does look like that is going to happen. oes the future of the fiduciary rule look like now? delay is helping realtors go back to the drawing board and potentially make tweaks to it, or it could die altogether. that will be a long, drawn out process. certain financial advisors who may not have gotten up to speed already by april may have a reprieve, but the reality is that most of the big firms have already started to adjust to the rule, put things in place, because april is just around the corner and they had about a year to get ready for this. a lot of the trends we're seeing

ow-c products are happening in the administration to adapt to the rule. scarlet: i'm glad you brought that up, because i'm wondering, the rollback or potential rollback of dodd-frank coming too late. many firms have spent the last six, seven years adjusting the strategies to comply with the latest rules and they are finally there. how likely is it that they will reverse course immediately because president trump has signed in order to reconsider everything? yalman: a lot has already happened. banks have been complying, ramped up capital. they got rid of the prop trading desk, which the volcker rule stop them from doing anymore. so many things will not go back. there are things on the market, softening certain and limitation of the rules can help them do -- implementation of the rules and help them do. that is what they are hoping

for, that on the margins banks can do a little more and take more risk here and there. one of the things that has not been talked about that banks complain a lot about -- jamie dimon talked about this a couple weeks ago, liquidity rules. if they manage to soften that a little bit, maybe there will be more liquidity going into the market and there could be a little more risk and profitability. on the margins there are things that can be done. peggy, when we look at and inuciary rule, banks this case advisors have already adjusted to whether or not -- obviously, dodd-frank has been around for a while, or the prospect of the fiduciary rule -- was that a waste of money? was that a waste of investment? or are these changes that the advisors took on themselves to be in compliance, is that still going to aid their business or is it a waste of time for us? peggy: it will be interesting if there is a bifurcation and

competitive advantage or does it vanished of the banks that move quickly, like bank of america, to adjust to the rules, for the ones fighting the rule more vigorously. i think when he comes to individual investors there has been so much sunlight put on this issue over the last several years because the industry funded for so long. -- fought it for so long. it took five or six years to get it done through the department of labor. a lot more individual investors are asking, are you my advisor, meaning you will advise me on products that are in my best interest, or are you a broker that is selling me something that is good for me but has a commission based in for you-- baked in for you? oliver: were the compliance expectations for the fiduciary enough where some of the smaller advisors may not have been able to do it? peggy: in some cases it may. the industry argued that they would not be able to serve the smaller accounts, people with less money. and as a result, some of the

smaller brokerages that serve people that were not in millions but tens of thousands might have been squeezed out of the business. in may send them a little bit of a lifeline. but the trend towards low-cost products is not going to stop, similar to what yalman was saying on the dodd-frank side. scarlet: we know the president trump campaigned on breaking up the big banks. he said they are too big and we have not figured out how to make them safe. does dodd-frank, or his revisiting dodd-frank come have any bearing on it? yalman: dodd-frank has restrictions on the bank side. i think i was part of the volcker rule, in fact. in thecaps on how much nation's deposit system you can have. repealing those will not really help to break up the big banks. it is the other way around. there is a little contradiction there. morning repeated the same thing, we haven't solved too big to fail. too bignot solved

available we will get rid of all the rules that tried to fix too big to fail. it is not clear. some of suggested glass-steagall will come back. that will be very interesting. that would be more radical than what dodd-frank has done. as they got rid of dodd-frank and brought back glass-steagall, wow. oliver: the 21st century version of a glass-steagall. yalman: yalman: which was the volcker rule yalman:. he said it was the 21st century version of glass-steagall by separating trading from the banks. i don't know what they are going to do. but the rhetoric about breaking up big banks don't really fit in with all the other stuff. scarlet: thank you so much, yalman oonaran and peggy collins. oliver: let's get "first word" is.

emma chandra is in the newsroom. emma: u.s. has revoked more than 100,000 visas since president trump announced a ban on immigration from seven middle eastern nations. at the hearing, the judge ruled that the state can't take the lead in the civil lawsuit, calling the travel ban unconstitutional. the judge imposed a temporary restraining order barring the federal government from forcing the ban. french officials say that the man who attacked soldiers outside the louvre museum in house today is believed to be an egyptian national. the man was shot and is now hospitalized. police officials are not providing additional details on the man's identity. in the u k, 2 judges have thrown out of brexit lawsuit that was trying to force a parliamentary vote on whether britain should stay in the european union's single market for goods and services. it is a boost for prime minister theresa may's plan to start brexit negotiations by the end of march.

global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. oliver: thank you. coming up, we look at the chance that president trump will get dodd-frank reform through congress. it won't be easy. democratic senator mark warner of virginia will join us on the program. this is bloomberg. ♪

oliver: this is "bloomberg markets." i am oliver renick. scarlet: i'm scarlet fu. president trump signing an ckecutive order to roll bak the form put in place after the financial crisis. we go to kevin cirilli on capitol hill. by senatore joined

mark warner of virginia. we will talk about dodd-frank but also the intel committee in the senate and president trump's ties to russia. what did receiver see regarding the executive orders out of the white house? sen. warner: as the vice chairman of the intelligence committee, it is my responsibility to shepherd through this investigation. yesterday we saw a slight tweak and relaxing one of the sanctions on russian spy agencies. while it is minor, i just want to make sure the administration knows they have to be put on notice that they should not be rolling back any of these sanctions. kevin: most experts who look at this said it was a technical fix. sen. warner: it was a technical fix, from my own business, the cell phone industry. but i hope it is not a test of the resultant congress command frankly bipartisan, because we need to keep the sections on not only because of what russia has done in crimea and we have renewed fighting in eastern ukraine, but also because of the unprecedented intervention of russia and russian agents in terms of our election,

manipulating information, selective release of hacked materials that favor mr. trump over clinton, and a very open question of what kind of contacts were there between any campaign and russian agents before the election. kevin: and u.n. ambassador rice nikki haley earlier today speaking the u.n. saying that russia should not be involved in crimea. what is the next step for the intel committee? sen. warner: the ambassadors that they should not be involved in crimea. i've not seen all of her statement, just the press reported i hope she also said that russian agents should not be involved in eastern ukraine. in terms of the intelligence committee, we're hearing a lot of information coming over the transom and we're looking at review, theisan basic core intelligence. we cannot have this cloud continued to hang over our electoral process and also the trump administration. kevin: senator, let's now talk about dodd-frank. the regular three executive

orders coming out of this white house. what areas can democrats work together with republicans and the white house to pass some relief?regulatory for example, what is your position on whether or not the consumer agency should be led by an executive board? , i think theoh consumer agency set up -- initially it was proposed it would have aborted but it was our republican colleagues that wanted it underneath the fed and now they want to change that . hasink director cordray done a good job and he has been on a relative basis balanced. there are areas of collaboration. we have a group of senators -- i am one banking as well -- worked on relief for community-based banks and looked at standards for regional banks that and also , frankly, other areas, number of shareholders, all kinds of relief. i have aary cohn,

great all respect for gary, i have known him a long time, now and advisor for president trump, but i took issue with a lot of his comments. he said we should get rid of ii, orderly title liquidation process. kevin: he says it would get rid of too big to fail. sen. warner: regulators and large banks have worked for years putting together resolution plans -- ever crisis happens you don't end up saying where do we start. you have a plan so you can resolve it. the first preference is diversity and what if bankruptcy doesn't -- is bankruptcy, but if bankruptcy doesn't work anymore for systemic crisis, you need to believe dissolve the institution. let's take the fdic model and do that. most of the large institutions agreed that this will work. we hope we never have to use it. but it is a tool -- we remember ts failure and a cascading effect it had on the

industry. i take issue with his comments there. i also take issue with his comments about capital standards. yes, america has higher capital standards. i believe that has made the banking industry safer. he is saying europeans don't -- kevin: could you work with republicans in terms of lowering the capital standards for community banks, senator, that feel this one-size-fits-all -- sen. warner: community banks have an exemption below $10 billion already. kevin: you do think -- sen. warner: being expanded. --ital standards around significantly, financial institutions, i'm not sure we should go down to the european standards, which he seems to be advocating. when you look at deutsche bank right now, which it seems from press reports -- i've not reviewed the books entirely, but from press reports, deutsche bank runs into problems, it could set up a financial crisis in europe. quickly, senator, have

you engage with republicans on the banking committee about negotiations in terms of dodd-frank legislation? sen. warner: we have not yet. chair, we, the new were in the foxhole together on the gang of six and simpson-bowles plan, i've have faith in him, and what he and ranking member brown want to do is see if we can work together. kevin: senator mark warner, top democrat on the joint intel committee on russia as well as a lisicki member on the senate banking committee, we appreciate your time. sen. warner: thank you. scarlet: chief washington correspondent kevin cirilli on capitol hill. oliver: still ahead, on this day when president trump is rolling back regular come how options traders are hedging bets on that sector, the financial sector. this is bloomberg. ♪

oliver: this is "bloomberg markets." i am oliver renick. scarlet: i am scarlet fu.

insight."istions all about banks. abigail doolittle has war. abigail: allen, thank you so much. >> happy friday. abigail: happy friday to you. after bearish action this week we are looking at yet another rally. what you make of this trading action? >> well, we're getting a bounce back, but we had held that last week and down this week. we recovered some of that but i don't think all the indexes, looking over my shoulder, are quite positive for the week. we have the vix down today but still not making new lows, nor new highs in the stock market can even with a good news this money. abigail: i'm hearing about the ll ratio of s&p 500, lows not seen in years. what do you make of that? is optimism,here

and that has me concerned. i've have been the bright eyed happy guy for the last seven years and now everybody is optimistic and that is reflecting in the ratio. if you look at the vix, we typically trade about 70% calls. people are looking at that as a hedge, were looking for some sort of uncertainty that could increase volatility. that is not gotten out of whack. but yes, people are more positioned in calls then puts. abigail: you bring that up as a contrarian trade. i'm glad you brought up your posture change. you are potentially seeing signals that would shift in the other direction. super quickly, financials are surging today, best day since the middle of november. what do you make of that? alan: well, you have seen the money momentum change. the banks were beaten and forgotten about and now they bounced. is bank sector, the xlf,

barely above the halfway point of this selloff we soften the 2007 highs to the 2009 lows. there was more upside with the momentum and the psychology has shifted. abigail: how do you play that with the xlf? boring stock old substitution strategy that has been very successful over the last year -- don't make it complicated. buy a money option that will behave like a stock for a much lower cost. 20 call for january 2018. the question is, why so much time? because you can. almost a year of time could the h option will cost $400. i get that much more time in case i needed. this sector has been trading sideways for 2 months now. look for a breakout above 24 and it is off to the races once again. abigail: great stuff as always. have a wonderful weekend. scarlet, back to you. scarlet: thank you so much, abigail. still ahead, ken bentsen

discusses the impact of trump le, the fiduciary ru slowing it down, delaying it. this is bloomberg. ♪

emma: i am emma chandra. u.s. has imposed a fresh round of sanctions on iran following confirmations from tehran that it conducted ballistic missile tests. 13 people and companies are

among the people penalized for supporting the program for backing iran's islamic revolutionary guard. president trump and national security advisor michael flynn said this week that iran was on notice for the launch. iran said it does not the permission to defend itself. the attack outside the louvre in paris was raising concerns about the city's bid to host the 2024 olympics. it is part of a wave of violence that has left more than 200 people dead over the past two years. olympic officials held a ceremony near the eiffel tower to mark the final submission to host. french republican presidential candidate françois fillon says he will not quit the race despite a widening investigation into allegations that his family of used public funds. the former prime minister posted video on twitter saying he understood the anger of the french people but his campaign will stay on track. the latest pol