i am david westin. we turn now to kailey leinz with bloomberg first word news. about 1200 mourners have passed st. martin's episcopal church for the service of george h.w. bush. carry his casket about 70 miles to college station. he will be buried in a private service. in vienna, opec ministers are talking about cutting oil our pet -- output. they are seeking further cuts for non-opec partners, such as russia. saudi arabia says it does not want to cover that will shortly -- shock the market. british prime minister theresa may is shrugging off suggestions that the government may delay a vote on brexit after a stinging defeat. she isls bloomberg optimistic. >> i think the chances of the no dealer very small, actually, considering what happened in the last few days. the parliament is taking a chance on this process. a defeat of the government the other night, which means parliament now has the right to go through all of the different options on brexit. blair also says it is highly unlikely a general electi

this is "bloomberg." ♪ david: this is balance of power. i'm david westin. the white house has always been a place with turnover. long, theare sacrifices are overwhelming. sometimes, it seemed like the trump white house is prone to switching out personnel. here to take it us -- take us through a year of turmoil is kevin cirilli. just a news not congress the president is facing. it is new faces in the cabinet. ,ncluding general james mattis he is going to be replaced by the current deputy defense secretary and the interior ryan zinke is out and the deputy is anticipated to take over there. he is being replaced by the acting chief of staff, mick mulvaney. the debte negotiating ceiling as well as that partial government shutdown. nikki haley at the u.n., a key spot in the shifting alliances worldwide to be replaced by heather nauer. that will need senate confirmation. a big reason why the deputy directors are serving as acting folks in charge of some of these is because they do not have to go through another senate confirmation hearing. david: he has got a few

headquarters, i'm david westin. welcome to balance of power, where world of politics meets the world of business. we have a looming government and our correspondent in washington on the sudden resignation of jim mattis. the president is currently meeting with republicans from the senate. >> all of a sudden, the discussion has become about the filibuster in the senate, that's the only thing that keeping the senate from passing the measure that the house passed yesterday, which would fund the government for two weeks and includes the billion dollars the president requested for his wall. the reason i cannot pass is because he needs at least nine democrats to get on board for the filibuster. the president wants to get rid of the filibuster. so far mitch mcconnell is not ok with that option. >> it's all up to mitch mcconnell, he has tweeted to mitch mcconnell to get on board, he wants to use the nuclear option. if they did that they give -- they do away with the filibuster, it is already nonexistent with respect to confi

david: from bloomberg world headquarters in new york, i'm david westin. welcome to balance of power were the world of politics meets the world of business. sarah frier under reports that the russian interference in the 2016 election was more extensive than we knew. michael mckee in new york about what the fed should do. and from london, theresa may's roadmap for brexit. in san francisco, a big report out. tell us what this report is and what it tells us that is surprising. >> this is the first independent report by the senate intelligence committee to look thatall of the data constitutes the internet resource agencies campaign on social media around elections. that is the russian troll agency. was that thend campaign was extremely intricate and interconnected and focused who wouldning voters back donald trump and criticizing hillary clinton. one of the most surprising elements of this report is that instagram was actually more of a tool and a successful tool for the ira and even facebook. ,avid: i want to talk to you sarah, about instagram, but let's go t

, david westin. welcome to "balance of power." kevin cirilli will be here on the german automakers meeting with president trump. sarah mcgregor on the china trade truce. and therese raphael on europe, telling britain it is not too late to change its mind. we will start in washington. sara, thank you for being here. explain what is going on. we that we came away from the dinner knowing what happened, but it is getting murkier. sarah: we have had officials sort of blanketing the airwaves and speaking to journalists nonstop over the past couple days, and rather than clarifying details, they are really selling more confusion. we saw larry kudlow say today that actually the announcement yesterday, or on sunday over twitter that china had agreed to lower auto tariffs, that has not been signed, sealed and delivered. so they are already backtracking on promises. and we had donald tweeting today that unless the talks are extended, they expect commitments from china to come through in these 90 days. but on sunday we were given the impressio

david: from bloomberg world had risen new york, i'm david westin. welcome to balance of power. anna edgerton on the drama over whether to shut down the government. indictments now announced on chinese hackers. and the chances of a second brexit referendum. what is going on? without they had a deal to keep the government open until february. it is awfully apart. >> it was quite the morning on capitol hill. we were watching members trickle out getting increasingly pessimistic. efforts, chris collins from new york said it looks like we have a deal. we will vote on this bill. the president will sign it. then mark meadows saying that this shouldn't happen, that the president should veto it. the president is not

from bloomberg world headquarters, i'm jason kelly in for david westin. welcome to balance of power, where the world of politics meets business. -- we havereally and kevin on personnel changes, and matt miller on the election of the new leader for germany. kevin, we are going to go to you down in washington. what is going on. it's quite a day -- going on? it's quite a day. a lot of personnel changes at the white house. >> the musical chairs has begun here in washington with the trump administration. to ber new art is going named the u.n. ambassador, hasacing nikki haley who announced that she is departing in the administration at the end of the year. reports of surfaced that john kelly my the on his way out within the next couple of days. cnn breaking that story earlier this morning. finally you have william barr, who the president says he will name as attorney to replace jeff sessions. this is someone who had served under the previous president, george h.w. bush. i have to be honest. i have been looking up his faceous comments, he will a tough confirmati

david there, the discovery ceo with david westin. fashion retailer, gap, has been struggling. in the gapot portfolio is old navy. emma chandra set down with the old navy ceo who talk about how data and technology is driving growth. >> it's a fun time to be in retail. old navy is in its seventh year of great sales growth, so we feel optimism about this year and holiday. involves, staying true to who we are which is all about fashion, fun, family, and value. and at the same time, changing in this digital age. that is what we are excited about and driving our growth. >> how much has technology change what you're doing at old navy? >> we have had an awakening over the last few years on data. it started by focusing on customer data. we have over 800 million vantage points per year. it's an enormous amount of information. as we pay more attention to that, we find many of the solutions that we are bringing to the market come from our customer insights. for example, this year, we rolled out by online and pick up in store. we rolled out mobile selling in our store. lofi funcoupled with

formerrmer secretary david miliband. talking to our very own david westin. let's get back to unite them as long for a prospective -- let's slam for ao naeem a perspective on the british pound. how much do you think the sort of damocles, -- sword of damocles as we are hearing it, which way does it swing? naeem: just to address your first part, if you wanted to see the real impact, look at it against the euro, where it is trading. that will tell you how much weakness is because of the brexit chaos. these politicians who are supposed to rule the country and guide us and the entire economy to a happy ending, they have created nothing but chaos. what do we think? chances that are we could see -- by either party. the chances of another referendum, although i would love to see that, because i think everyone deserves a second chance and the people do not know what they voted for, but i do not think this will go through is that. a is more likely to see current deal as jeremy corbyn says. we have to respect the will of the people and they voted to leave. caroline: the

david westin spoke to disney ceo bob iger about the -- about that back in november. they discussed their fourth-quarter results. the studio and the theme park hit record years and quarters. they were a big part of the success we had in the fourth quarter. that is true for the year as well. we also had good results at our meeting in broadcasting. it ended up being a great quarter for the company. to havet is nice tailwinds when you go into this merger. where are you in the 21st century fox? give me a sense of the timing, when do you expect it to close? going throughill the regulatory process. a lot of progress has been made. we announced a couple of days ago we gained approval in the eu. that was a big deal for us. there are still some markets and countries actually that we are waiting for approval on and we are in the middle of that process. in june, we said it could take as long as 12 months to close and we are more optimistic that it will occur meaningfully before that but we are not saying specifically when. as we wait for regulatory approval, we have started to f

david westin with coverage at 10 a.m. of the state funeral of the 41st president of the united states. look for that at 10 a.m. in new york 3:00 p.m. in london, world dignitaries visit the national visit the national cathedral. this is bloomberg. ♪ this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. ♪ aside themorning, set of thetrad

david westin is in washington today. david: this is a national day of mourning for george h.w. bush. coming up on the capital where the former president license state in the capitol rotunda. at 10:00, the bush family will make their way to the capital, wait at the bottom of the steps, the honor guard will take the salute,ut, a 21-gun load the casket in the hearse. they will start the service at 11:00 promptly. it will last about one hour and a half, then take the casket to joint base andrews and where it will proceed to houston. we will cover it all. we will bring you the entire state funeral. will be discussing his legacy and foreign policy in terms of china and domestic policy as well. markets are closed today. futures are open. a rebound after yesterday's brutal selloff. move in thely quarter, a big change. now futures of .5%. euro-dollar flat. a mix to dollar, but mostly flatter. 10 year yields in the u.k., selling coming yields rising five basis points. bind uponit is a story. not with the u.k. as the brexit issue blew up yesterday in parliament. softer on oil ahead of the

this is bloomberg. ♪ david: this is balance of power and i am david westin. we turn to mark crumpton for bloomberg first word news. president trump's former lawyer has been sentenced to three years in prison. tohael cullen pleaded guilty a baiting taxes, lying to congress, bank fraud and campaign-finance violations. cohen told the judge he takes full responsibility for his actions and that he felt it was his duty to cover up what he dirty president trump's deeds. and massive manhunt involving hundreds of police and soldiers continues in france for a suspected extremist who went on a shooting spree yesterday around one of europe's most famous christmas markets. officials say the assault in the eastern city of strassburg killed two and left one person brain dead. authorities identified the suspected gunman as a 29-year-old frenchman with a long police record. the biggest political threat to british prime minister theresa may. a confidence vote on her leadership today also means more chaos for him brexit. members ofat parliament will vote on whether they have co

from washington, i'm david westin. ♪ ♪ ♪ worlde from bloomberg headquarters command shery ahn. here are the top stories we are following from around the world. remembering 41, the world mourns the loss of former u.s. resident george h.w. bush. china response to tariffs, confirming the 90-day deadline for talks as trump ramps up the pressure. countdown to opec. with just one day to go before the critical summit, oil gains ground. the nation today remembers the legacy of president george h.w. bush, and perhaps the most important part of that legacy lies in his foreign-policy achievements. dictator isf the over. >> i'm peter jennings in new york. astonishing news from east germany where the authorities have said that the berlin wall does it mean anything anymore. [cheering] >> by the grace of god, america won the cold war. >> his presidency from a foreign policy standpoint, he was such a consequential president. he knew foreign policy. he understood it. he managed the end of the cold war peacefully without a bang. >> it was his foreign policy dream team that helped him do that. >>

david: welcome to bloomberg daybreak. monday, december 31, last day of 2018. i'm david westin. it's been two weeks. alix: time's square at midnight? right there for you. david: i guess getting ready for it. we already had the dawn of 2019 already in auckland, new zealand. we're waiting for it in sydney as well. i understand there are a lot of thunderstorms going on right now in sydney. alix: spend new year's when it's 80. david: here's the video from an hour ago in auckland. there you go. the sky tower in the harbor. alix: 2018. man that year went fast. not if you're an investor. this year was traumatic and you are probably hoping for a different 2019. get to the markets here. it's very caulk overall. you have equity futures pointing to a higher open here, 21 points for the s&p. it is the worst year, looking at the worst year for equities in about a a a decade. the superlatives are dramatic whether it's in europe, china, a eurodollar flat on the day. it's the sterling strong story. little bit of selling in the margin in the back end here. we're only 273 on the 10 year is fascin

talk to paul romo about the coin.ate of by welcome now to "bloomberg i'm david westin and abramowicz.h lisa lisa: it's not everyday that i learn that you bake quiches. on theet you caught up market action today. euro gaining a bit against the appear that a does italy will submit a revised european the commission. s&p futures tipping more into the red now. yields down just a touch as we prepare for wednesday's fed decision. david: time now for the morning brief. just looking at the entire week ahead on tuesday. 40th marks the dow ping's of opening economy. on wednesday the fed is expected to raise u.s. interest rates at -- fridayeting been congress toe for avert u.s. government shutdown. lisa: let's get the latest on brexit.oing on with british theresa may continues quest for brexit deal. parliament 10:30 a.m. eastern e against a second referendum. saying it will do irreparable damage to our politics. could say to millions that our democracy does not deliver. further divide our country at the moment we should be working to unite it. joining us now from london with more of the latest dav

. ♪ jason: i'm in for david westin. welcome to balance of power. before we get to the latest in washington, take a quick look at the markets. we are off of our session lows, still hovering down 1% on all the major indices. the nasdaq, which really led the way to the upside yesterday, leading toward the downside right now, down 1.8%. stocks have been pretty much in the red all-day -- all they. we will -- all day. we will continue to look at that this afternoon. let's talk about to the shutdown. no clear signs of a deal. president trump fresh off that trip to iraq in germany. here is what he wrote -- to iraq and germany. here is what he wrote.

david westin hopefully still sleeping. what is interesting is we have the data, then we get the headline that china will be cutting tariffs to 15% on u.s. autos. carol: six of the top 10 vehicles that go from u.s. to china are from yemen automakers, bmw and daimer. we will see. alix: three months. we will give this, soybeans et cetera risk off the in markets. low lows of the session, ugly risk off kind of day. s&p futures down 8/10 of 1%. over $27 billion leaving u.s. equities, second highest on record. talk about a flood out. euro-dollar down six tons of 1%. approaching key levels, as weaker euro data comes in. buying in the treasury market, safe haven, 2.88% on the 10 year. stable risk off the. , he ishe privilege literally called god in the commodity world. legendary investor and i asked him what his take is on oil prices. >> balance, if you want to place a bet on oil, you are better off betting up. alix: catch that all weekend, replaying. it was great. he did not give a specific rise. carol: it was a great conversation

david westin has a much-deserved day off. interesting session involving. european stocks rebounding. lowest level yesterday since 2016. u.s. futures not participating. lower 15 points. we erased all gains for the year yesterday. flatware we were when jay powell came out where we were a week ago. 2-10 spread, two year yield fell 10 basis points yesterday. biggest drop in's may. crude has no idea where it will go until opec comes out. -- biggest drop since may. lisa. jobs expectations. gina, what is your forecast? >> they're expecting steady as she goes. no major change in outlook. market is nervous about this report. a lot hinging on wages. this will be key. if we can see the average hourly wage number stop increasing, it could be enough to ease market concerns that the fed will be forced into tightening at more persistent pace in 2019. we have gone from pricing in three hikes next year to one. there are whispers over the last couple days, maybe they won't do december? we have to see easing inflation pressure. >> interesting. we are back to good news is bad

. ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to balance of power were the world of politics meets the world of business. sarah frier under reports that the russian interference in the 2016 election was more extensive than we knew. michael mckee in new york about what the fed should do. and from london, theresa may's roadmap for brexit. in san francisco, a big report out. tell us what this report is and what it tells us that is surprising. >> this is the first independent report by the senate intelligence committee to look thatall of the data constitutes the internet resource agencies campaign on social media around elections. that is the russian troll agency. was that thend campaign was extremely intricate and interconnected and focused on emboldening voters

. ♪ >> from bloomberg world headquarters, i'm jason kelly in for david westin. welcome to balance of power, where the world of politics meets business. -- we havereally and kevin on personnel changes, and matt miller on the election of the new leader for germany. kevin, we are going to go to you down in washington. what is going on. it's quite a day -- going on? it's quite a day. a lot of personnel changes at the white house. >> the musical chairs has begun here in washington with the trump administration. to ber new art is going named the u.n. ambassador, hasacing nikki haley who announced that she is departing in the administrn

. ♪ ♪ david: from bloomberg world headquarters in new york, i am david westin. welcome to balance of power, where the world of politics meets the world of business. york, on the fed. in brussels, on coming to terms with the italian budget. let's start on capitol hill. anna: it looks like the most likely scenario at this point is a stopgap measure that will get us to february 8. this has been added to the house schedule so we are expecting a vote on friday before the funding runs out. this will bring up the fight again, but it looks like the government will be ok for now. david: president trump said he would not do an extension. what changed his mind? anna: the math is not in his favor. there is no way he can get the wall fundi

. ♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power." where the world of politics meets the world of business. today, greg pharaoh in new york on the sentencing of michael flynn. from washington, kevin cirilli on a possible retreat from the white house on the government shutdown. and from rome, our correspondent on getting the italian budget passed the european commission. trump wishingt mike flynn well today on his way into sentencing. how is it going? >> not well. the defense had hoped that the judge would show sympathy to with they tried to portray as entrapment by the fbi. the judge is having none of that. he city was discovered of -- he said he was disgusted by michael flynn's behavior. so the judge not showing any sympathy or love at all for michael flynn. david: that is going forward, the sentencing prog,

. ♪ >> from bloomberg world headquarters, i'm david westin. welcome to balance of power, where world of politics meets the world of business. we have a looming government and our correspondent in washington on the sudden resignation of jim mattis. the president is currently meeting with republicans from the senate. >> all of a sudden, the discussion has become about the filibuster in the senate, that's the only thing that keeping the senate from passing the measure that the house passed yesterday, which would fund the government for two weeks and includes the billion dollars the president requested for his wall. the reason i cannot pass is because he needs at least nine democrats to get on board for the filibuster. the president wants to get rid of the filibuster. so far mitch mcconnell is not ok with that option. >> it's all up to mitch mcconnell, he has tweeted to mitch mcconnell to get on board, he wants to use the nuclear option. if they did

i am david westin with lisa abramowicz. alix steel is off. italy has a deal. >> that is what they say. markets seem to be buying it. falling theds are followin most since october. this is not a big deal. 2.4% tot came down from 2.04%. is it real? coming up, the european commission vice president for brussels and former latvian prime minister will join us. lisa: do you think this is real? david: i don't know what is real. theresa may answering questions. they say they are getting ready for a hard brexit with no deal. lisa: it is getting more exciting to watch these. the person who screams loud, i love him. david: she is steadfast. theresa may did not blame. lisa: let's look at markets. tonew york, a softer today. equities, we are getting a pop in s&p futures. after in europe gaining six days of declines. crude getting a bid after the run sincee-they 2016. italian yields declining on the possibility, just perhaps, possibly some sort of deal with the eu. david: we can hope. in the meantime, general mills coming in, beating in on their eps and gr

jason: i'm in for david westin. welcome to balance of power. before we get to the latest in washington, take a quick look at the markets. we are off of our session lows, still hovering down 1% on all the major indices. the nasdaq, which really led the way to the upside yesterday, leading toward the downside right now, down 1.8%. stocks have been pretty much in the red all-day -- all they. we will -- all day. we will continue to look at that this afternoon. let's talk about to the shutdown. no clear signs of a deal. president trump fresh off that trip to iraq in germany. here is what he wrote -- to iraq and germany. here is what he wrote. that's a lot to digest. let's welcome kevin cirilli from the white house. kevin: good afternoon. jason: what is the latest? kevin: president trump fresh from his trip returns to washington. not many lawmakers here to negotiate with. the president tweeting out what you just read. on the flipside of that, also commenting in the last 48 hours that he believes most of the government and these who are furloughed are

david: i am david westin. t is filing a registration statement for an ipo. it is not a surprise. we thought it would happen in early 2019. they have moved that date up, which i find puzzling. alix: the best day for the s&p last week since 2011, but a lot of volatility. david: you don't want to go out with an ipo when there is a lot of volatility in equity markets. they moved it up. it is a hot area. uber is expected to follow. lyft goes, uber is not far behind. alix: it is interesting, particularly when it is an ugly tape. 2%, down byoff by 44 points. the initial fall was enough to set off cme circuit breakers. go-two-safetyff, trade. high-yielding currencies getting pummeled today. what is interesting is the lack of buying in the treasury market. in the had a big bid last few days and are below the 3% level, but yields are only down by two basis points. brent completely hammered. unbelievable movement and headline soon from opec. david: it will be interesting to see what happens over the next couple hours. alix: and how that volatility will spread to other asset classes. andd: 8

capping a week of big exclusives on wednesday david westin sat down with bank of america chairman and ceo brian moynihan at their offices in new york. they went straight to the subject the financial world was buzzing about, the fed read on the economy and its policy outlook. clear for months, basically saying we have a view of where the rate is getting of a moreal accommodative economy are taking accommodation out of the economy . we think that rate is 2.5 to 3.5%. we are getting up to the bottom of it. of course they would be more cautious. leader ae economics few years ago say to me come plots andooks at dot gets excited but you have to think of a person climbing the mountain. the question meeting to meeting is where is the next handhold. it is not that they have some view of 17 meetings down the road. of what a normal view the comment would do if it went to 3.5% and rate structure was right. a lot of the path work was needed early on disabled this is where we are going. now we are there and it is back to the handhold to handle. i think chairman powell said data it is meeting and de

. >> from new york, i am jason kelly in for david westin and welcome to balance of power where the world of politics meets the world of business. we will be joined by kevin cirilli at the white house. we have a lot to talk about in the nation's capital. what is the latest in washington? >> day five of the partial government shutdown but the fed chair is safe with a job according to the council of economic advisers advisor who that the morning president is not considering firing, even if he could, the fed chair. the president facing tough questions about market volatility. they said there are a host of economic indicators as to why the volatility in the market. the government shutdown. looking to ease concerns of the market and the business community, saying that hundreds of thousands of federal workers who were furloughed will receive payments and this will work itself out in the long run. no one knows how long the long run is. >>

david: from bloomberg world had risen new york, i'm david westin. welcome to balance of power. anna edgerton on the drama over whether to shut down the government. indictments now announced on chinese hackers. and the chances of a second brexit referendum. what is going on? without they had a deal to keep the government open until february. it is awfully apart. >> it was quite the morning on capitol hill. we were watching members trickle out getting increasingly pessimistic. efforts, chris collins from new york said it looks like we have a deal. we will vote on this bill. the president will sign it. then mark meadows saying that this shouldn't happen, that the president should veto it. to president is not willing sign a bell even if the house is willing to pass it. we'll come back to you in a moment. metta kevin -- now to kevin in washington. a dramatic announcement from the department of justice today. kevin: this is part of a in coordination with u.s. allies to go after, name, shame, and expose a campaign by chinese intelligence agencies of hacking. are accusedhackers for hac

. ♪ capping a week of exclusives on wednesday, david westin sat down with brian moynihan in new york. they went straight to the the fedsf read on the economy and its policy outlook. ♪ months,were clear for saying that we have a view of where is the rates are getting and accommodative economy are taking accommodation out and we think that raises 2.5% or 3.5%. so of course they would be more cautious. i had a wise economics leader a few years ago say everyone looks at the dot plots and gets excited, but you have to think -- the question to me is where is the next -- not that they have some view of 17 meetings that plays out. but a lot of the path work was needed early on to say here's where we are going. now we are there and it is back to the handhold. dataman powell said it is dependent, if unemployment stays as tight as it is, if wages continue to grow. are still at 2% plus then we will still tighten. on the other hand they brought their estimate down. we did the same thing today. there more worried about factors outside the system, the stock market prices. all the geopolitical stuf

. ♪ david: this is "balance of power." i'm david westin. now mark crumpton. mark: the white house says president trump is going to work with congress to avert a partial government shutdown. h has been threatening to vetoe any budget bill that does not include money for a wall. a number of government agencies will run out of money on friday night. arizona's governor has named martha mcsally to replace jon kyl in the u.s. senate seat that belong to gender -- that belong to center john mccain. ducey said that make sally will take over the resignation and take effect at the end of the year. last month gone mix sally lost her race for the other senate seat. she will serve until the 2020 election, with voters will choose someone to serve the final two years of john mccain's term. the biggest government has decided to ramp up preparations for a no deal brexit. the brexit secretary says that while the government remains committed to prime minister theresa may's deal, it needs to be ready in the event it does not happen. on thetponed the vote divorce agreement until j

capping a week of exclusives, david westin sat down with bank of america chairman -- the bank of america chairman ceo. they went straight to the subject of financial whirlwind buzzing. clear for months, basically saying we have a view at which the rate we are getting on accommodative economy or taking accommodation out of the economy at fastbreak -- fast rates. we are getting to the bottom of it. of course they would be cautious. who said to me everybody -- when a person has been in a room, you have to think of the person climbing a mountain. the question is -- where is the next handhold? not that they have a view of 17 meetings down the road of what is going to happen. what would it be like if the economy were going to .3%? a lot of the pack work was needed early on to save people. now we are there. it is are back to that meeting dependent. it's unemployment stays as tight as it is. wages grow. they have moved up to 3%. if the conditions are still a growth in the economy, 2% plus. we will tighten that. on the other hand, they brought the estimate for the economy. we did the same thing.

david: from bloomberg world headquarters in new york, i am david westin. welcome to balance of power, where the world of politics meets the world of business. york, on the fed. in brussels, on coming to terms with the italian budget. let's start on capitol hill. anna: it looks like the most likely scenario at this point is a stopgap measure that will get us to february 8. this has been added to the house schedule so we are expecting a vote on friday before the funding runs out. this will bring up the fight again, but it looks like the government will be ok for now. david: president trump said he would not do an extension. what changed his mind? anna: the math is not in his favor. there is no way he can get the wall funding through the senate. that will still be the case in february, and we will have a democratic majority in the house , but at least he will say it is not a unified republican government where the republicans control all the levers of the government. david: we will talk about the wall in a moment. away,d, we are not far 2:00 this afternoon. w

he spoke with david westin on how he manages to continue to take the cost down and still higher the banker he needs. the bankers he needs. >> there were tensions because nobody had the platform we had to figure out ways to self fund all of this and the reason why as we started on this 5, 6, seven years ago. we had a $72 billion operating toe and we brought that down 53 billion. so if you look at the third quarter of last year and the third quarter this year we went down 4000 people or something like that. we had a 2000 people to serve clients and get relationships. the question is using technology, operational excellence and process can you keep the cost of doing business. we are not taking at the bottom line is we need to make investments. $3 billion in technology. six new middle-market bankers this year. you are driving it back in an hour investors like that because we are able to hold it flat. if the economy doesn't grow as strong we can sustain that investment rate. of hardow nine years work. it's not easy but it is so embedded in the culture that we can continue to drive it out. we ar

david: welcome. i am david westin here with alix steel. the action is in london come in the parliament. were looking at parliament now. were waiting for prime minister's questions. it will be this evening where she fights for her leadership with her own party, the conservatives. alix: either way, how do you move ford from something like this? what will she say, and how much he will she take? it will be brutal. david: if she survives this, she gets 12 months clear and free, so she may be emboldened. they can't challenge her again for 12 months. alix: you said that. cable is up, cable is up, but i'm skeptical how you govern after that. it is a risk on field. a trade deal may be with china. apparently the market is taking the vote of no-confidence .otentially s&p futures are up. sixth intraday move for the s&p. , 1.25.le rate up by .4% -- $24, $27 billion billion worth of supply coming online. we will see what the takedown is for the 10 year. crude up by over 1%, almost 2%. we are waiting for the opec monthly report. and we have the prime min

. ♪ >> capping a week of exclusives on wednesday, david westin sat down with brian moynihan in new york. they went straight to the subject of the fed's read on the economy and its policy outlook. ♪ >> they were clear for months, saying that we have a view of where is the rates are getting more neutral, and accommodative economy are taking accommodation out and we think that raises 2.5% or 3.5%. so of course they would be more cautious. i had a wise economics leader a few years ago say everyone looks at the dot plots and gets excited, but you have to think -- the question to me is where is the next handhold? not that they have some view of 17 meetings down the road, that plays out. but a lot of the path work was needed early on to say here's where we are going. now we are there and it is back to the handhold. chairman powell said it is data dependent, if unemployment stays as tight as it is, if wages continue to grow. if conditions are still at 2% plus then we will still tighten. on the other hand they brought their estimate down. we did the same thing today. we are more worried about

. ♪ david: from bloomberg world headquarters in new york i'm , david westin. welcome to "balance of power." kevin cirilli will be here on the german automakers meeting with president trump. sarah mcgregor on the china trade truce. and therese raphael on europe, telling britain it is not too late to change its mind. we will start in washington. sara, thank you for being here. explain what is going on. we that we came away from the dinner knowing what happened, but it is getting murkier. sarah: we have had officials sort of blanketing the airwaves and speaking to journalists nonstop over the past couple days, and rather than clarifying details, they are really selling more confusion. we saw larry kudlow say today that actually the announcement yesterday, or on sunday over twitter that china had agreed to lower auto tariffs, that has not been signed, sealed and delivered. so they are already backtracking on promises. and we had

. >> capping a week of exclusives on wednesday, david westin sat down with brian moynihan in new york. they went straight to the subject of the fed's read on the economy and its policy outlook. ? >> they were clear for months, saying that we have a view of where is the rates are getting more neutral, and accommodative economy are taking accommodation out and we think that raises 2.5% or 3.5%. so of course they would be more cautious. i had a wise economics leader a few years ago say everyone looks at the dot plots and gets excited, but you have to think -- the question to me is where is the next handhold? not that they have some view of 17 meetings down the road, that plays out. but a lot of the path work was needed early on to say here's where we are going. now we are there and it is back to the handhold. chairman powell said it is data dependent, if unemployment stays as tight as it is, if wages continue to grow. if conditions are still at 2% plus then we will still tighten. on the other hand they brought their estimate down. we did the same thing today. we are more worried about th

. ♪ taylor: >> capping a week of exclusives on wednesday, david westin sat down with brian moynihan in new york. they went straight to the subject of the feds read on the economy and its policy outlook. ♪ >> they were clear for months, saying that we have a view of where is the rates are getting more neutral, and accommodative economy are taking accommodation out and we think that raises 2.5% or 3.5%. so of course they would be more cautious. i had a wise economics leader a few years ago say everyone looks at the dot plots and gets excited, but you have to think of a person climbing the mountain. the question to me is where is the next -- not that they have some view of 17 meetings down the road, that plays out. great structure was right, that sort of plays out. but a lot of the path work was needed early on to say here's where we are going. now we are there and it is back to the handhold. chairman powell said it is data dependent, if unemployment stays as tight as it is, if wages continue to grow. if conditions are still at 2% plus then we will still tighten. on the other hand they

. ♪ >> from bloomberg world headquarters in new york i am david westin. the balance of power for the world of politics meets the world of business. from london, trying minister paris the may -- prime minister theresa may's fight to keep her job. china's reported move away from its made in china 2025 program and kevin cirilli on the threat of a government shutdown on december 21. we started the day with theresa may being attacked by her parliament. how does it look as she goes into this conservative party meeting? >> i missed the question. her prospectse going in

david: from bloomberg world headquarters in new york, i am david westin. welcome to "balance of power." on the brief today, michael mckee. we also have to count down to the brexit vote. first to mike. the markets are way down today. how much of it because of one woman who works for hewlett-packard enterprise greenroom -- who works for huawei? michael: what has markets upset is the rest of meng wanzhou. she is not just any cfo, she is the daughter of the founder, and huawei is not just any chinese company, it is the key effort of control the future. it sells more smartphones than apple, is bigger than boeing, leads the world in five g

ryanbank of americans moynahan speaking to david westin on what has been going on with the fed in the market reaction. we have a doj press conference coming up shortly. we'll bring you the details. this is bloomberg. ♪ guy: let's take a quick look at where european markets are right now. all in negative territory. the continental markets are where we are seeing the real negatives. the dax down 1.12%. deutsche bank laggard in that market. what is interesting is easyjet is having a relatively good day despite what has been going on at gatwick. the oil price probably a factor behind that. vonnie: in the u.s. we are not even a full hour into the trading session but the s&p 500 is controlling itself. only down about .25%. just a handful of stocks higher in the dow. down oink 5%. the nasdaq is flirting with the zero level. vonnie: live from new york, i am vonnie quinn. guy: from london i am guy johnson. this is "bloomberg markets. to the let's get back federal reserve. an author for bloomberg news joins us now. markets are in control of themselves, but we did see a big reaction yesterday.

david westin takes a look back at the life of george h.w. bush. ♪ >> i, george herbert walker bush, do solemnly swear -- >> that i will faithfully execute the office of the united they. >> that i will faithfully execute the office of president of the united states. >> and with that, george herbert walker bush became the nation's 41st president on friday, january 20, 1989. he was born in new england in 1924, and his father was a banker and politician. the family lived in greenwich, connecticut, where the younger bush attended private schools before being accepted to yale. but he didn't go to yale right away, instead listing in the u.s. navy on his 18th birthday. a naval aviator, he flew 58 combat missions in the south pacific, including when his aircraft was hit. with his plane on fire, he dropped his bombs on the target, flew out to see, and floated on a raft for hours before being plucked to safety by a u.s. submarine. while still in the navy, lieutenant bush married barbara pierce.shortly thereafter , they started the family while he att

moynihan spoke with david westin about his brexit preparations and the situation in europe. spent more money and we have done a lot of work. operating ased and a europe and u.k. business. that is all terrific work. understandingr to the rules of operation. we have to prepare for the worse. we are preparing that the whole world changes and there won't be a lot of guidance. we hope it is better than that. hope is not a strategy, so how we are managing risk, liquidity, operations is turning to the customers and saying how do they make sure they don't have a disruption in the life. but it will be, because the rules are not clear sets. it's a tough political, social political debate. businesses have been handed the outcome and we are doing our best to make it work. no one is going to get a new project, new service, new activity for anything going on in brexit. you doa problem when these things. it will take a while for that to shake to the system. we have seen some of the effects on the british economy, but how much about europe? compare it to something's going with italy with th

. ♪ david: from bloomberg world headquarters, i'm david westin. welcome to "balance of power." on the brief today, from london, we have reports on a new challenge to theresa may. on the google's ceo testimony before the has to share committee. and michael mckee on reports that china may be reducing tariffs on auto imports from the united states. very automatic news with the group announcing that they think they have the letters to challenge theresa may come explain what is going on. reporter: this is the european research group, they are of the core of hardline brexiteers who want theresa may gone. they think that her deal is dead, they think the deal is dead for brexit and they wanted somebody else, maybe boris johnson, to take over. the way they get rid of leaders is 48 members of parliament have to,

david westin takes a look back at the life of george h.w. bush. >> i, george herbert walker bush, do solemnly swear -- >> that i will faithfully execute the office of the president of the united states. >> that i will faithfully execute the office of the president of the united states. david: with that, george herbert walker bush became the 41st president on friday, january 20, 1989. he was born in new england in 1924. his father was a banker and politician. the family lived in connecticut, where the younger bush attended private schools before being accepted to yale. he did not go to yale right away. instead, enlisting in the u.s. navy on his 18th party. he flew 58 combat missions in the south pacific, including when his aircraft was hit. with his plane on fire, he dropped his bombs on target and flew out to sea, and floated on a raft for hours before being plucked to safety. lieutenant bush married barbara pierce. the couple started a family while he attended yale. there, he was captain of his fraternity and the baseball team. after gradua

david westin takes a look back at the life of george h.w. bush. >> i, george herbert walker bush, do solemnly swear -- >> that i will faithfully execute the office of the president of the united states. >> that i will faithfully execute the office of the president of the united states. david co with that, george herbert walker bush became the 41st president on friday, january 20, 1989. he was born in new england in 1924. his father was a banker and politician. the family lived in connecticut, where the younger bush attended private schools before being accepted to yale. he did not go to yale right away. instead, and listing in the u.s. navy on his 18th party. he flew 58 combat missions in the south pacific, including when his aircraft was hit. with his plane on fire, he dropped his bombs on target and flew out to sea, and floated on a raft for hours before being plucked to safety. lieutenant bush married barbara pierce. the couple started a family while he attended yale. there, he was captain of his fraternity and the baseball team. after gr

headquarters, i'm david westin. welcome to "balance of power." on the brief today, from london, we have reports on a new challenge to theresa may. on the google's ceo testimony before the has to share committee. and michael mckee on reports that china may be reducing tariffs on auto imports from the united states. very automatic news with the group announcing that they think they have the letters to challenge theresa may come explain what is going on. reporter: this is the european research group, they are of the core of hardline brexiteers who want theresa may gone. they think that her deal is dead, they think the deal is dead for brexit and they wanted somebody else, maybe boris johnson, to take over. the way they get rid of leaders is 48 members of parliament have to, of the conservative party, have to write to the chair of the kind of core conservative committee, the 1922 committee, with letters of no-confidence. that would trigger a vote of no-confidence in the leadership, which would then allow, if she did not win and that it would allow ot

david westin has a much-deserved day off. interesting session involving. european stocks rebounding. lowest level yesterday since 2016. u.s. futures not participating. lower 15 points. we erased all gains for the year yesterday. flatware we were when jay powell came out where we were a week ago.