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tv   Bloomberg Markets  Bloomberg  September 25, 2015 11:00am-2:01pm EDT

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on theate place spectrum, but antigovernment, shut it down, that's not acceptable. presidents washington said this is the effect of someone attempting to start their own government, and that is what we are seeing. much for ourone so country with great presidents, isders in congress, yet it -- some would say the party has been hijacked by a fringe element, and we are seeing the effects of that now. is what we doant for the american people across the country, and what we must do is keep government open and
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remove all doubt in anyone's of anhat the ideology extreme element of the republican party is not going to meetste how our country the needs of the american people, and they are not going to sacrifice the health of american women by shutting down the government with the excuse that it's about planned parenthood. [inaudible] rep. pelosi: leader of the opposition party as nominee. i'd love to go through that again. thank you all very much. brendan: i am brendan greeley with pimm fox. that was nancy pelosi, current speaker of the house. recap of the nice
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day. the president saying that we need to be candid in our relationships. she went to our holiness pope francis. she said that we need to be of usery and to help us to prevent oppressive lending. the two --were : those were the two known stories of the day, then the announcement the john boehner will resign at the at 10 -- resign in october. brendan: he was smoking one of
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those famous cigarettes. pimm: there is the fact that he did not want to make any announcements about his resignation while the pope was speaking in new york. brendan: at the same time he announced his resignation, there was applause in the audience for marco rubio. some people put forward for a possible speaker of the house paul ryan, kevin mccarthy. neither of them are blueblood. paul ryan is saying he does not want the job. a lot going on in the nonfinancial news. let's take a look at a quick market check. equities are up in the u.s.. pimm: it's a rally. brendan: widely up and down.
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snp up about 30 points over the course of the day. pimm: shares in nike are moving higher today, up more than 9%. future orders for all that footwear and apparel are very strong. perhaps some of that is moving the market today higher. you say rally, icy high volatility. here is other news that we have not been covering in the last hour and a half. everything has been breaking. each atllen gave ace u.s. amherst. i am joined mike mark lehman. let's start with you, mark.
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what did you learn about the fed's academic approach to this? i think the fed is watching all the data that they have. in august, they had a slowdown in china. we have gotten some new data, lost in all the news of the day, tegdp that was really qui traordinary. i think the job numbers were pretty good. the market is pleased with it. you can see the results, which is up today. the s&p is a lot higher. there been this course of voices trying to get the fed to raise interest rates? they were afforded in the meeting in september, and now that janet yellen gives the speech, which hints that they might still raise rates in 2015,
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the stock market goes up. how does that work? >> is very clear that when they focus on the data, any meeting, all meetings remain on the table. a 2015s potential for lift off if the economy continues to meet expectations. she turned around and said these expectations come with a significant amount of uncertainty. the will all depend on underlying data and evolution of the underlying data. i think in part, the stock market rally was effective the chairman backing away from ontements about the weakness the international fronts, but also on the backdrop of the front that is willing to remain on the sideline. it is not the fed beholden to the calendar alone.
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we go into the speech she gave yesterday at umass amherst. yellen: it will likely be appropriate to raise the target for the federal fund of range later this year and continue boosting short-term rates at a gradual pace thereafter as the labor market improves further and inflation moves back to our objective. really: she was stressing the gradual pace. even when she gets off a zero balance, the labor market runs a little hot. how much scope that she have to do that? mark: i think we have seen that she has got a lot of scope. when a lot of people were disappointed with in august, when we had the september hat sheement, was tht
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wasn't listening to the numbers. near 5%. market was i think she has a lot of latitude. good point here, which is that they are incredibly attentive and they are paying attention. they are really listening to all factors, domestic and international. one,t off, even a small will get us back to where we want to get, a growing economy. we are prepared to do that. at the same time, temperature if it is not what we want. inflation was the topic of janet yellen's speech last night. where is the inflation in the u.s. economy? 2% inflation, that seems far in the future? lindsay: she was talking about
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not meeting that until the next two or three years. she talked about the downward pressures, including energy import prices and non-energy import prices. these will most likely be very littleith underlying pressure coming from the lack of a wage price inflation. ,hat is interesting is that again, she noted that if we see further downward pressure from energy prices and commodity prices or further appreciation of the u.s. dollar, the downward pressures on inflation are likely to take a longer. of time toeriod dissipate. her expectations are for a near-term reversal and suggests, the data what inflation out in the economy? , the fed is more
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likely to air on the side of on the side of caution. brendan: we want to thank you so much. putting us from los angeles-- pimm: we are going to take a break. when we come back, we are going to stay on top of the story of the day. john boehner has announced his resignation as speaker of the house. brendan: how that will shake up washington, d.c., coming up. ♪
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brendan: welcome back to the
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bloomberg market day. i am brendan greeley. pimm: i am pimm fox. it is news that is sending shockwaves through washington, d .c. john boehner is stepping down. he plans to leave congress at the end of next month. the news comes as he battles members of his own party over the federal budget. has agreed to ignore shutlicans who want to down the government rather than keep funding planned parenthood. brendan: in a speech at the united nations, the pope says urgent action is needed to halt the destruction of natural resources. he knows that some steps have been taken. francis: it is clear that without all those interventions on the international level, mankind would not have been able use ofive the unchecked
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its own possibilities. praised the pope also the nuclear deal with iran and calls for the abolition of nuclear weapons. president obama is meeting with the president of china. they are expected to discuss a number of areas where there are significant disagreements, including cyber security and human rights. and xi jinping will hold a joint news .onference it will be broadcast live here on bloomberg tv. brendan: gdp rose at a rate of 3.9%.
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it may help sustain the u.s. during a global slowdown. switzerland has opened a investigation into soccer's worldwide governing body. blatter hasnt sepp been facing allegations. 14 people with ties to the organization have been indicted. pimm: i have been following you from the very beginning. brendan: i read the prosecutor statement. they repeated at the end that everybody is innocent until proven guilty, but it is great. [laughter] brendan: let's look at what is happening in the market right now. the dow jones industrial average is turning positive. big game so far. -- big gains so far.
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julie: the stocks are reacting positively to announcements from janet yellen that the rates are going to go up at the end of the year. this is the opposite of where it has been for the past two years. you can see financials are the best forming group. are doing well, and consumer discretionary is doing well. i want to focus on that group as well. look at nike. performingbest- stock on the s and p today -- s&p today. future orders are up 17%. sales are better than estimated. the company is having strong sales in china. it is an interesting
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contrast we are seeing between nike and finish line and foot locker. you would think that if nike sales are strong, competitors would be strong. finish line came out with sales that missed estimates. comparable sales will be up in single foot locker is actually trading higher. interesting divergence there. take a look at housewares. pier 1 and bed bath & beyond. 1 earnings missed estimates. beyond shares are higher. this is a live shot of
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pope francis. he has been meeting with officials at the 9/11 memorial. you see him there with the founder of bloomberg, michael r bloomberg, down by the freedom tower at the 911 memorial. pimm: -- 9/11 memorial. pimm: i have actually not yet been to the museum. it is supposedly very moving. along itinerary for the pope. enerary for the pope. brendan: later on, he will be attending a service at a harlem school. then, he will celebrate mass in central park. our: where some of producers are reading right now. coming up, blackberry's second
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quarter earnings fell short of expectations. we will speak to their second chairman and ceo. ♪
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brendan: good morning, i am brendan greeley with pimm fox. a busy, busy day of news this morning. we are going to take a look at some of the top stories on the terminal this morning. u.s. antitrust regulators are looking into google and the android operating system. investigators want to know if google stifled competitor access to android. google told the federal trade commission that google gives at a court in london, lawyers --r the united states that
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the hearing was delayed until february because of the new charges. regulatorstitrust intervene in the plan to merge with staples. those are your top stories. you can see the pope in lower manhattan. standing beside him is michael bloomberg. they are at the 9/11 memorial, freedom tower. michael bloomberg is my
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boss' boss.' they are the two men who have the most control over my life. in their hands rest my fate. [laughter] pimm: i'm glad. google is under u.s. antitrust scrutiny. the federal trade commission is investigating whether the tech access to competitors the injury operating system. we meet cory johnson from san francisco. what exactly is the basis for this complaint, corey? corey: it's the underlying story here.
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android is a great risk to the way this company does business. they are looking into an approval of applications and the way they work on the android operating system. half the phones in the united states are run on this android system. the notion that google is picking winners and losers and favoring their own services beyond the search and operating system could be a big problem for google. it is exactly what a number of technology companies are alleging, and the fcc is digging into that. this is just two years after the last antitrust investigation by the ftc. brendan: help describe the difference between the way european authorities look into
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this and how they look and twit into the u.s. -- in the usa? cory: one of the things that we learned during the last investigation is that the staff is very vigorous in insisting the charges be brought. a report was accidentally leaked to the wall street journal. sent themt the ftc the full version of the investigation, the portions of which they put online. they showed them the staff found a number of cases where google put their own business ahead of competitors when searches,. they were not getting customers the things they wanted, they were giving them google services. the same allegations were found in europe. europe decided to bring charges. in the u.s. did
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thanks very much.endan: that was cory johnson, bloomberg editor at large joining us from san francisco. google's stock is up 18.5% so far this year. still ahead, a look at capitalism inside the vatican. i am excited about this. how the pope dealt with the vatican bank. god here onk about bloomberg. ♪
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emily: blackberry recorded a second-quarter earnings before the bell this morning. that projected a wider than
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expected loss. cuts,effort to regain they will offer a smartphone that runs on android, rather than running on its own operating system. , want to ring in john chen joining us from toronto. thank you for being here. i've got to ask you about this phone. how much do you think of phone like this will be five sales mark --? john chen: we are very bullish about a phone. we told black phones for a long time. our claim to fame has been security and privacy. the thing that has always heard us is lack of ecosystem support. working with google and been in the put our blackberry know how into the latest operating system
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there, it should appeal to a lot of people, especially professionals and more high-end consumers. 11: you shipped 800,000 phones. what kind of numbers in you mapping out for this android phone? not provide did that information. the reason we put this out today is i would normally wait until we market a month from now. it's leaking everywhere. i am going to have to get my arms around of that area since it's leaking, i thought it would you good thing for the market to know that we are doing that. haven't the details i disclosed yet. over time, we will start disclosing. i don't think we will tell people how many phones we are going to sell. over time, the market will give you some intelligence there. emily: we appreciate you giving
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us the details. i have been asking you about this for a long time. if your high-security customers embrace the android phone it, would you be convinced to stop selling the blackberry operating system opponent? what would it take to do that? john chen: that's a great question. the blackberry phone is the most secure phone on the market. we have a lot of high-end government users. we continue the support of that. we have a new report coming out in march of next year. that will provide another level of security certification. the government and the regulated industry customers will be taken care of. we will continue to develop security for the android space. there will be a time when the
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canomer will say they certify and we will switch them over. there is no particular timeline that we are comfortable. emily: we have to talk about revenue. belowid it would not fall $500 million and this quarter it came up short. how much shorter can it go? john chen: i made a statement today in the earnings call. uptick from the q2 volume. you could call it the bottom or whatever. that's what we expect to do. we should see some uptick. emily: you are always about potential or blackberry in cars. weekw with volkswagen this
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using software to change emission standards. apple is pushing ahead on its own car. what role you see with blackberry in cars going after mark --? emily: it's really about iot. the car is the first frontier that. being able to interact with your home wi-fi. obviously, you can do anything from advanced driver assistance safety and controls. systems, car is -- think of it as being a big application itself. make goodeople business of the car. we provide a lot of the basic operating systems for cars like ford and volkswagen to name a few.
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we have brands around the world. we think there is a good business there. we already do quite a bit of business there. emily: how many cars as like very touched? john chen: 60 million is the last count. there really is no limit to where it can go. the car is a replaceable item. devices get to medical and management. it's a big space. even just focusing on it transportation is a big space. emily: we will have to leave it there. as always, thanks so much for joining us on bloomberg television. that was emily chang in sanford disco with john chen.
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t san francisco with john chen. the pope is at the 9/11 museum. the popet his visit, is held fast to his critique of savage capitalism. he told capitalism -- congress slave tocan't be a finance. thisit comes to managing institution, does pope francis produce what he preaches? my guest can tell us some details. before we get to pope francis, described for me a little bit about the history of the vatican bank. a lot of people may not know about its existence. is the head of a
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nation, the vatican city and they have had a bank for 70 years. they have decades of scandals. it practiced what he calls savage capitals. it was a place for money launderers and people who wanted to avoid taxes. they did business with the nazis in world war ii. extraditens could not a bishop because he had inside vatican city. is this pope says that capitalism has his extremes and should be somewhat restrained going to do something about his cityank inside of vatican which has been over the line? what has he done? he has shaken up the bank. he is launched a major investigation. tell us about his relationship with the vatican bank. gerald: he has no choice.
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the vatican started to use the euro at the turn-of-the-century. require themng to meeting international standards. like an annual report. they passed their first ever law against money laundering. past a law against financing international television. he used to be in to bring as much money as you could carry. he is reform it. he has no choice. he is doing it with some enthusiasm. he is not giving this to clerics and a few months in your's that are dragging their feet and don't know what they're doing. he is bringing in good outside experts. pimm: one came from invesco. gerald: he has brought in the wall street people that he castigates at times.
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he is the layman it running the vatican bank. they are good catholics. there is nothing that says you can't work there unless you are catholic. they are all devout catholics that are successful is this man. they are trying to clean up. i think they are doing a good job of it. there are two criminal investigations in italy looking at money laundering the for francis became pope in 2013. those may develop into criminal cases. pimm: what about cases that could be in some way amplified up by the release of documents that are held in the archives of the vatican bank? gerald: let's say he is a reformer going forward. the question i would raise publicly, will he be a reformer
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going backwards? will he released the world war ii files of the vatican bank? are questions about the extent to which the vatican profited from investments with insurance companies during the war. the bank was created in the middle of that. will the vatican release that? i don't know. you just mentioned he is at the 9/11 memorial. there are nearly 100 representatives there. will they raise the issue of the holocaust files with him? he might be the pope capable of setting them free. pimm: thank you very much for setting -- spending time with us. ahead, with a looming shutdown, john boehner announces that he is resigning from congress next month. we've get details.
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pimm: this is the bloomberg market day. john boehner is resigning. he believed congress at the end of october. phil mattingly joins us. i want to begin with you, phil mattingly. you have some new information. the rnc has a statement about john boehner's resignation. phil: we hearing from a lot of
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top republicans, even those who did not agree with speaker boehner at any point, there is respect for the career he had in washington and the difficulties he had to deal with. the next person we will hear from will be president obama about this after his meetings with the chinese president. he will be having a press conference. addresshe president to speaker boehner. this goes back to what has been a very rebellious conservative faction of the house. speaker boehner to the role, he has brought with them throughout to maintain government functions, to maintain the u.s. been able to pay its bills. getting the pope to washington dc, something he has been trying to do for decades, he decided its time to hang it up. he finished his remarks after saying the prayer of france it
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-- st. francis. today was a good day. we will likely hear from him going forward. october, he will leave congress altogether. pimm: hang on to second. i want to bring in stand colander. what is going to be a next speaker? ben: it will almost entirely kevin mccarthy on a very short leash. they've got to be thinking that he's going to be hearing footsteps item. they did this to eric cantor as well. they are going to go after the next speaker if he doesn't do what they want. pimm: what would be your position? what are the odds of a government shutdown? are two parts to this question. the short answer is the odds in
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october are zero. john boehner can now work with the democrats, which gives him a 190 votes. he only needs 28 republicans to get a majority. he can tell the freedom caucus to take this job and shove it. that is undoubtedly what he was doing. the odds of a shutdown in december have driven -- risen rather dramatically. kevin mccarthy will be on a short leash trying to deal with the freedom caucus. they are also dealing with the debt ceiling. it's going to be much more difficult and much more uncertainty for the markets to deal with. he came to congress in 1991. what does it say about the resignation of such a veteran member of the house of representatives question mark
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stan: the republican caucus is in it this ray. the party has changed dramatically. you would expect that anyway. this basically says that if you are in the establishment, you are gone. we don't respect you, you don't represent us. the party has become a much more conservative. you are seeing this in the congressional leadership roles, mitch mcconnell is also under attack from extreme conservatives. you've got to wonder what this does to the presidential opportunities. it probably hurts it substantially. pimm: i want to thank you gentlemen very much. to philks also mattingly of bloomberg news. using up, phil will give
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coverage and reporting on the president's news conference. he will have a joint news conference with the chinese president. we will cover that live and have more details on the resignation of house speaker john boehner. live coverage is coming up of the president's news conference. ♪
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pimm: this is the bloomberg market day. we will bring you live coverage of president obama's news conference with the chinese president. that will begin at noon. while we await the two presidents, i will bring in my colleague for the next half hour, betty liu. you talked to some senior state officials of the chinese government, the chinese counterpart to our secretary of state. that climate
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change is going to be a big topic of conversation. betty: that's the indication. we went to beijing and we talked to the counselor. he is part of the delegation on this trip. we are expecting a joint statement between the u.s. and china on climate change. china is basically going to make it a lot more expensive with regulation, cap and trade. they're going to make a lot more expensive for any company in china when it comes to air pollution. they are trying to rain that back. slightly, that is people knew it would be on the agenda. it's slightly different than what was expected. we thought there might be a joint statement on cybercrime.
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pimm: two decriminalized the internet? betty: the accusation is that the chinese government sponsors hacking. a threat to impose economic sanctions. that's a very contentious issue. it is a big elephant in the room. there was hope that maybe they could find some sort of common ground for the chinese to say they are going to really crack the on this, even though say thatontinue to they do not sponsor this at all. they themselves feel that they are the victims of cybercrime and, just as much as the united states. it doesn't look like we are to
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get a breakthrough on that front. pimm: we will look forward to the presidents press conference with the chinese president. onwill bring that to you bloomberg tv. now it's time for the options insight. let's go right to julie hyman. we have a rally underway. janet yellen said it's likely we will see interest rates go higher this year. let's talk what the options perspective. traitorme is james, a at alpha sharp trading. interesting day. it's a reversal. you have this indication that rates are going higher and stocks are going up as well. what's going on? equities are seeing based on the comments yellen made last night.
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i think it's indicating that not all are the case. we are up 15 points right now. over net, we are up over 30. people are seeing this as an opportunity to take profit. we are seeing a lot of foot buying as well. like all -- not all traders are on track for a rate hike this year. they are using today as a way to pick up some protection. julie: i know one of the groups you are watching, the financials. they have been leading the gains today. right now, it's up better than 1.5%. you talked about buying. somebody is taking a negative that on that. james: absolutely. we saw some massive losses.
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the biggest trade we were tracking this week happened on wednesday. a traitor came in and bought 92,000 positions. that's better than a $7 million bet. we are not going to get a rate hike this year. maybe this traitor is looking for some protection. i like this trade because it accomplishes two things. i can speculate on a lack of rate hike or have cheap protection against long equities in case we don't get that. julie: gotcha. what is your trade exactly? james: i am buying this same line of points. i was able to get them for cheaper today. cheap wayrelatively for me to buy protection against a long portfolio of equities. we are seeing a lot of outflow this week. i think this is a good time to look at protection like this. a bet that we
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will not see rates go up this year because rates going higher would eventually be good for some of these banks profitability? james: absolutely. i think that even though we got some clarity, they are still leaving themselves out should the global economy with weaker. everybody was convinced we would get that rate hike in september. then they cited that as a reason for not raising rates. julie: all right. thanks so much. we are watching that today. stay with us. much more bloomberg market day. ♪
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pimm: good afternoon. betty: welcome to the bloomberg market day. president obama is due to speak at the white house at any
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moment. he had a meeting with the chinese president. pimm: down the street, john boehner makes a stunning announcement. he will resign next month. he is facing pressure from more conservative members of the house republican caucus. pimm: good afternoon. brendan: what a morning. we had a lot of news coming out into the market. the markets were paid attention to what janet yellen said last night. more about how the markets are trading. the market's down off the highs of the session. traders appear to be paying attention to those comments.
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she indicated in that speech that there is a high likelihood that we will see interest rates increase. she gave herself some data dependent caveats. financials are leading the game. i wanted to focus on apple. the report today that this is the first day people can buy the new version of the iphone. you can see that the shares are higher by about one third. they had given up some of the gains from earlier in the day. early indication is it's been strong. this was in boston when it people were lined up for that new iphone. as they tend to do. we saw some similar lines here in york and elsewhere in --. pimm: what about the suppliers who make the parts? julie: many of them are doing well today. if you look at my terminal, we have the supply chain function. we've been looking at this a lot lately.
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it shows you the apple ecosystem. an estimated 62% of its revenue comes from apple alone. apple has a long supplier list, 314 suppliers measured by bloomberg. media outletsral to have done it paired down of the new iphone to figure out who some of the suppliers were. the stock is up 13%. there was some commentary from oppenheimer. he said he was impressed with some of the new chips. speaking of some of the suppliers we are looking at, nxp semiconductors depend on apple and they are up 2%. if we are talking about the apple ecosystem, there is one had itse, blackberry numbers and those shares are down. they are down by nearly 6%.
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john tran tried to put a brave face on things. he said it has hit a low point of the turnaround. now it will go up from here. this is after they reported a wider lost an estimated. that is partially to blame for the decline in shares. pimm: thank you, julie hyman from the newsroom. we are following two major stories coming out of washington dc this morning. the resignation of house speaker john painter and as you see in awaiting the are president and the president of china. they will be holding a joint press conference in the rose garden. phil mattingly has the latest on a both stories for us. phil joins us from the white house. let's take first the surprising news, stunning news the john
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boehner is resigning. tell us where this throws the future? you get the budget, immigration it, several issues on tap. phil: there are so many dynamics in play. the government needs to be funded after september 30 that has big the big fight in the house. that has been centered primarily on planned parenthood and the money it gets. conservatives say you have to strip that funding. what this does for republicans and lawmakers since john painter announced his resident nation, this puts the chances at more or less zero. the expectation is that john boehner will put up a clean of funding resolution that the president says he will sign. the government shutdown is gone it, but long-term it seems like every three months since he took
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over, there was a massive fight with the 30 or 40 conservative members of his conference. towill no longer be there keep the regular functions of the government going. they need to find out who the new leader is going to be and by a member or december when the debt ceiling comes back up, whether they are willing to increase and get something to the white house that the president will sign. pimm: we are getting word that there is a statement released i john boehner's office. it characterized his resident nation in terms of the potential turmoil. long leadership turmoil would do irreparable damage to the institution. to that end i will resign the speakership. why would he also resign his
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seat in congress? phil: there is no sense in sticking around just to be there. you saw eric cantor who was defeated and was the majority reaver -- leader. i think what he's referring to is were he put forward a clean funding resolution that did not defund planned parenthood, there were people putting up a resolution that would remove them from the speakership. there is some sense that he had the votes to win that battle. it continues to send the conference down a way that is unhealthy for the republican party as a whole. the key element, john boehner worked for two decades to get to washington dc. pope francisst for yesterday. was athat visit, there sense among those around him that he could exhale.
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he hit everything he wanted to do in the position and it was time to go. betty: he got it done. we learned from nancy pelosi that she heard of this resignation from a breaking news alert. she was not told ahead of time. she noted that this is in her view a statement of how much house republicans are in disarray. you expect the democrat reaction to be in the coming days of this? phil: it's going to be split. i'm sure there is some dancing on the grave. we watch the republican party become so fractured us that they ran out one of their top members, a guy who is an extremely conservative member of congress. moderateen pegged as a because he had to lead of this group of republicans. boehner, you knew you could
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pick up the phone and he would tell you where he stood and where the votes were and he would tell you what he could get done. know whether the next leader is heaven mccarthy or something else, if that line of communication will remain open or what your action the conference will go next. there is a lot of turbulence and democrats think long-term that's good. there is a lot of wariness about where this could head. notpresidential election is if you want to increase the debt ceiling. pimm: you've been speaking with your sources all morning. characterize the responses that you are getting from those people? phil: stunned. whispers always been that he wanted to step down. people acknowledged that he
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wanted to step down in 2014, but eric cantor's loss made him stick around. the timing was a surprise. he was always the good soldier. he would get people through these fights. take all the arrows from conservatives and protect people around him. think people knew this was coming eventually. a lot of people expected this to be his last term a, but they did not expected now. we are hearinggs is not many speakers get to leave on their own terms. they are voted out or their party loses control. there is great joy among his team that he is doing this on his own accord before there is some type of revolution that pushes him out. this is john boehner leaving congress when he wants to. that matters. betty: the optics matter on that. let's move on to the other event
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we are waiting for, we are waiting for the news conference from president obama and the president of china. john kerry is just ahead of the start of this news conference. we heard the news this morning that they will be issuing a joint statement on ways to work together to battle climate change. if that's a slight disappointment, that that's all they will say or are we expecting anything more. phil: pyramid secret negotiations where chinese officials came to the united states to meet with top officials and the fbi director about some kind of cyber agreement. , cyber espionage is
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a major problem and a major hindrance to this relationship right now. there was some hope that some broad agreement could be reached on that front. i am told that after the meeting with the chinese president last night, they are not quite there yet. even if they did it get there, it would not be as detailed or substantive as officials would like. you will hear the president address cyber directly. this has become a huge issue for the united states and its relationship with china. the climate deal, that's a big deal. it started with november. it is leading up to the paris talks in december. china and united states being united is a huge deal. i think law enforcement hoped a broader agreement on a cyber could be released. right now, they were there. if that changes, that becomes
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the huge news of this day. that we're receiving word the house speaker will be holding a news conference scheduled for 1:00 eastern. you are going to be quite busy this afternoon covering the press conference of resin obama and the president of china as well as following john boehner's press conference. i'm sure there will be a lot of questions about the pope. let's get you caught up in some of the top stories at this hour. pope francis is blasting worlds powerful countries for destroying the environment. the pope said urgent action is needed to halt the destruction of natural resources. he noted that some steps had been taken. all ofancis: without
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those interventions on the international level, mankind would not have been able to of its the unchecked use own possibilities. he also raise the issue of the nuclear deal with iran and called the abolition of nuclear weapons. the u.s. economy grew at a faster rate than was previously estimated in the second quarter. it grew at 3.9%. that's up 2/10 of a percent from the prior estimate. domestice increases in spending and construction. betty: some americans are looking past the volatility. amongwas sentiment wealthier. people were convinced of the stock market declines had more
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to do with international things. pimm: specifics of opened a into fifanvestigation president sepp blatter. ties the with organization have been indicted for -- and for others have pled guilty. this is the final in a showdown between ivy league rivals, yale and harvard. those are the gains from the schools endowments in the year ending june 30. harvard's endowment is the world's largest with $37 billion. betty: volkswagen will name miller the ceo. out 22sis has wiped william dollars of market value this week.
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he was tapped to be the new ceo. the meeting has ended and he has appointed new head of the car company. pimm: according to the german newspaper. it's an interesting situation. he is a veteran of volkswagen. he ran the porsche division. he brought porsche to a more popular mass-market appeal. we will see what's happening in other levels of management saying it was an issue related to the emissions control on the diesel engines. that goes all the way back to the head office in germany. betty: he's going to have a lot to do dealing with that before he can think about how to revive the brand. more cominggot much up on the bloomberg market day. we await president obama and the chinese president.
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they are in the rose garden of the white house. he will bring it to you live. ♪
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pimm: this is the bloomberg market day. let's take a look at some of the top stories as we await the press conference of president obama and the chinese president from the white house. the justice department is expanding the charges against the british trader who is blamed in the flash crash. lawyers for the united states say that his criminal behavior went on longer than was filed in the original complaint. the united states would like him extradited. the hearing was delayed until february.
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betty: there is an investigation of facebook's plan to buy office depot. this may lead to less cup titian in the office supply they -- competition in the office supply business. blackberry is going ahead with plans of creating a new flagship handheld device. salesmpany's smartphone fell faster than its cost-cutting efforts. that is a look at the top stories at the moment. joining us is the global director of economic research, michael mcdonough as well is phil mattingly in front of the white house awaiting the press conference. michael, it's good to have you with us. what kind of statement will we begin about climate change?
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differenceffect any between the way companies operate now and how they are going to have to operate in china? michael: when you look at what they have been doing on climate initiatives, renewable energies. ,n a central government level they've been doing a lot more than our federal government has. we have been doing more on the local level. when you look at what we have in common with china, china -- climate change is the most commonality. having the chinese president here and making this effort is no real surprise. that is what we were expecting to see. pimm: there are paring for this other conference in paris. michael: what we were expecting to get from this, we also saw what happened with boeing. the ultimate goal between the two countries is to get to some
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sort of trading agreement. i don't the queer going to see any big initiatives there. the differences are too wide. think he said we need to work with the u.s. and meet halfway. these are all good indications that down the road we could have a trade agreement with china. were not ready for that yet. that he: no one is expecting -- suggest -- eddie: nobody is talking about that. pinpoint how significant this is for companies, this climate agreement, how significant is it going to be on the climate itself? up more thanring they have talked about before? phil: in part, yes.
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they agreed to reduce emissions at a level they did not expect. it was probably more of an impact on the global economy and the global climate that in the us. we just got an e-mail out. both companies -- countries have released their joint statement. we were talking about cyber security. that is the underlying theme of sharphere they have disagreements and there has been a lot of frustration. as we expected, there was no large agreement on a big statement of facts were these countries stand. what the countries have agreed upon is they will not knowingly support any type of cyber espionage. that is what they are agreeing to. they will set up a high level by a login a mechanism to discuss
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problems from both sides. thishint at continuing going forward. there is no central argument. this is mostly cooperation. right now, the chinese president and the president of united states are talking. president obama: i want to welcome the chinese president back to the white house. we hosted him three years ago when he was vice president. this is our sixth meeting. working together more closely across a broader range of critical issues. our cooperation is delivering results. since i took office, exports to china have doubled. that supports one million american jobs. chinese investment in the united states to support jobs, we partnered to address global challenges.
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district climate change announcements that we made last year in beijing have encouraged other countries to step up as well. the i-5 plus one, china was critical to the sanctions regime that brought iran to the negotiating table and to the talks are produced the copperheads of deal. -- copperheads of deal. that is what american and chinese cooperation can deliver. i want to say again that united states welcomes the rise of a china that is peaceful, stable, prosperous, and the responsible player in global affairs. expanding our to cooperation, even as we address
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disagreements candidly and constructively. that is what we have done on this visit. let me mention some specifics. first with our economic relationships, we stepped up a treaty for american companies. we committed ourselves to a set of principles for trade and information tech knowledge he, including protection of innovation and intellectual property. we discussed accelerating market reforms and avoiding devaluing currency. i raised one again our concerns about cyber threats to american companies and american citizens. i indicated that it has to stop. the government does not engage in cyber economic espionage for
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commercial gain. i can announce that our countries have reached a common understanding on the way forward. we've agreed that we will not ,onduct or support cyber theft including trade secrets or other confidential information. we will work with other nations to promote international rules of the road for appropriate conduct. this is progress. i have to insist their work is not yet done. i believe we can expand our cooperation in this area. we will continue to use the tools at our disposal to protect american companies, citizens, and interests. i am pleased that we were building on the climate commitments. last month i issued our plan to help reduce america's carbon emissions i want to commend china for it beginning a cap and
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trade system to limit emissions from some of its largest sectors. i announced our pledge of $3 billion to the greek climate fun -- funded. our countries are putting forth our common vision for the ambitious climate change agreement that we seek in paris. when the world's two largest consumers, andgy carbon emitters come together, there's no reason for other countries to not do so as well. this is another major step toward a global agreement that the world needs. security in the asia-pacific, we have agreed to new channels of discussion.
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bereaffirm our commitment to nuclear -- the nuclear is asian. -- denuclearization. we will not accept north korea as a nuclear weapons state. we did have discussions about the east and south china seas. i related -- reiterated the freedom of commerce. i indicated that the united states will continue to sale, fly, operate any place that international law allows. we have concerns about rand reclamation and be militarization. this makes it harder for countries to resolve disagreements peacefully. encouraged a resolution between claimants in these areas. we are not a claimant. we just want to make sure that
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the rules of the rotor upheld i reiterated my comment to one china policy. we have agreed to do more to promote international security. will bring it countries together toward development in afghanistan. we will work with our many partners to strengthen international peacekeeping. partners that all including iran it needs to implement the deal. the deal lease to be fully enforced. for the first time, we will partner to promote global development. we will build on our efforts against ebola. efforts onand humanitarian assistance. given china's success in lifting millions of people out of we will help rally the
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world this week around new development goals. we hope to end extreme poverty. we had a discussion about human rights. i affirmed america's unwavering support for human rights and fundamental freedoms of all people. i expressed our view that preveg journalists, lawyers, and society groups from operating freely and closing churches and denying ethnic white or equal treatment are all problematic in our view, and actually prevent china and its people from realizing its full potential. obviously we recognize that there are real differences there, and the president shared his views on how he could forward in a step-by-step way to preserve chinese unity. we expect that we will continue
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to consult in these areas. even as we recognized event as part of the people's republic of china we encourage chinese authorities to preserve the religious and cultural identity of the tibetan people and engage in dalai lama and his representatives. we are taking more steps to expand the connections between our default. tourism in a new era the coming months. they learn english, we are starting a new initiative to encourage one million students to learn mandarin chinese over the next five years. to his children are already in -- to vice president biden's grandchildren are on track. truly understanding each other in a good place to start. overall we have had a him extremely productive meeting. the particular work that husband
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that has been done by our team shows the extraordinary progress we can make when we are working together. the candid conversations between the president and myself about to avoiddisagreement, misunderstandings or miscalculations, and pave the way for further progress in those areas. and i want to thank you again for expanding your commitment to cooperation between our nations. i believe it is another reminder that has win to narrow our differences we can advance our mutual interest for the benefit of the world. thank you. >> president obama, dear friends from the press, ladies and gentlemen. dear friends, good morning.
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it is a greater pleasure for me to meet with all of you together with president obama. by thanking, again, president obama and the u.s. government for the gracious hospitality and thoughtful arrangements and reception accorded to me and the chinese delegation. think thet to american people for a warm welcome. yesterday and today president obama and i have had in-depth discussions on our respective domestic and foreign policies, and national and regional situations. our meetings are constructed and productive, and we have reached extensive and important consensus. during the discussions president thea shared with me domestic agenda and foreign-policy priorities that
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he has been working on and i congratulated him on the progress he has made in those areas. i appreciate president obama's reaffirmation to me that the united states welcomes the rise of a peaceful, stable, and prosperous china. supports china to play a bigger role of the international arena, and the united supports china coming up. to present obama that china is making all wrote efforts to make abrasive reform to build law-based governance to party -- and forced her discipline, to achieve their grand goal of initial prosperity and all respects. china is firmly committed to the path of peaceful development, it is converted to friendship and relationships with all countries in the world.
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we work with united states to build a new model of major country relationship. without conflict, without confrontation, with mutual respect, and win-win cooperation is a priority in china's foreign policy. we have spoken highly of the important progress made in china, u.s. relations since the summit in 2013, and we have agreed to follow the consensus, expand the global cooperation at the lower levels. issues inferences and constructive manner, and to majore the new model of country relationship between china and the united states. we have a green -- agreed to deepen cooperation in those areas, and we have agreed to
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pursue the negotiations must be up the pace of the work so to achieve a high standard and balanced agreement. expand mutually beneficial cooperation in energy, protection, aviation, infrastructure, health and other areas. the two governments have signed many cooperation agreements, and our businesses have signed a series of commercial contracts. china and the united states are highly complementary economically, and there is huge potential for further cooperation. civilian high-tech items, it will help to expand the mutual cooperation between the countries.
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we have also had in-depth discussions on the current economic situation. we have agreed to step up macroeconomic policy coordination for global economic growth and financial stability. to this end we have established the mechanism of regular phone combination -- conversation between china and the united by the which will be led secretary of treasury jacob lew. they will stay in close globalcation, respective major economic issues. we will also step up cooperation within g-20 and other multilateral mechanism. supportinge the u.s. and including the r&b into the imf special drawing rights when certain standards of the imf are
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meant. i also appreciate the commitment plane structural reform adopted. we have for a loop -- fully affirmed the new progress made in the confidence building mechanism between the two militaries. we will hold more joint exercises and training. we believe that terrorism has become an enemy of mankind and we have agreed to step up multilateral cooperation. have decided to increase communication and cooperation. law enforcement cooperation to drilling five to get all kinds of transnational
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corruption and crime. we had in-depth discussion on situation of the asia-pacific, and we believe we have extensive common interest in this region, and we continued to deepen dialogue on regional affairs and work together to promote active interaction and exclusive corporation and report countries in the asia-pacific to promote case, stability, and press narrative. -- prosperity. a neighboring foreign policy, characterized by partnership with our neighbors. sea was seen in ancient times as the chinese property. we have the right to hold our property claims. we are managing differences and disputes their dialogue. we are addressing disputes
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through negotiation and peaceful manner and exploring ways to achieve mutual benefit the corporation. we're committing to respecting and upholding the freedom of navigation and overflows countries enjoy according to international law. relevant construction that china do notng in the islands target or in fact any country and china does not intend to pursue miniaturization. we have many communication and interest on south china sea. the countries directly involved should address their disputes through negotiation, and in peaceful means, and with support of free overflights according to international law. differencesnt of are dialogue and full benefit of
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early confrontation of the competition on consensus building. we agreed to maintain constructive communication on relevant issues. states arehe united two major cyber countries. we should strengthen dialogue and cooperation. friction are and not the right choice for both sides. during my visit the authorities of both countries have reached important consensus on joint fight against cyber crime. uph sides agreed to step investigation assistance, and information sharing, and both governments would not engage in or knowing ways of war online theft of intellectual properties. we will explore the poor relation of appropriate states and behavior norms of the
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cyberspace. we will establish a high level in thealogue mechanism fight against cyber crime and related issues and to establish hotline links. democracy and human rights are the common procedure of mankind. at the same time we must recognize that countries have different historical processes and and realities. we need to respect people of all countries and the rights to choose their own development have independently. the chinese people are seeking to realize the grade renewal of the chinese nation, which is the chinese way. this process is a process to achieve social equity and justice and acknowledge human rights. enter aands ready to time of initial quality and respect and enter dialogue with united aids.
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expand consensus, reduce differences, learn from each other, and progress together. we have decided to continue to work together to tackle global challenges and provide more public growth or the international community. we again issued a joint announcement on climate change. we agreed to expand the part cooperation -- practical cooperation, and work together to push the paris climate change conference to produce important progress. we have agreed to expand cooperation in asia, africa, and other regions in terms of security, public health system establishment, emergency response and disaster reduction. we will maintain communication
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and coordination and influencing the development agenda. we will promote a more equitable balanced global development partnership and help developing countries to achieve common development. we have agreed to firmly uphold the international nuclear nonproliferation regime. president obama and i welcome the comprehensive joint plan of action reached by relevant parties regarding the iranian nuclear issue. we reaffirm that all relevant hearties should undertake to implement the agreement fully and work together to have led all relevant united nations resolutions. we've reaffirm our commitment to realize the complete and verifiable denuclearization of the korean peninsula in a peaceful way. and we oppose any actions that might cause tension in the korean peninsula or violate un
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security council resolutions. we believe that the september 19 bent statement should implemented in full. all relevant parties should work together to firmly advance the denuclearization process of been korean peninsula and maintain stability so as to create enduring peace in northeast asia. the friendship between the two peoples is the most reliable four then or worn -- development of relations. we should endeavor to solidify this important foundation. we have decided to make 2016 a year of tourism in china and the united states. in the next three years we will studentstal of 15,000 to study in each other's countries. we also welcome the united
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states position to extend the from00 wrong initiative universities to elementary and secondary schools and by 2020, 1 million americans dividends will learn mandarin. a door friendship of china will continue to be open to the american people. i also hope that the chinese people could come to the united states for holidays or visit more easily and conveniently. of president for 36 years development the interests of the united states is deeply connected and we have responsibility for world peace and progress. there are broad areas that the two sides should and can work together. the chinese stand ready to work ath united states to uphold balance relations. to seek for the progress to the chineseenefit of the
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american people and people in the world. thank you. [applause] president obama: we will take a few questions. we will start with bloomberg. >> thank you. president obama, and president sheen, i would like to talk about cyber. if i am an american business and i'm being attacked by chinese prior to or trying to steal my intellectual property, what assurances can you give us about when things will get better? are you proposing a new sanctions? and could we expect prosecution of chinese people and organizations who have hacked american businesses and if the u.s. did sanction china, would you respond with sanctions? when is your action to house speaker john boehner's decision to resign? will that make life better or worse for you?
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are you concerned it will make it more difficult to avoid a government shutdown? do you think he could just ways the rules and get immigration reform through? thank you. president obama: i will take them in order. in respect to cyber, this has discussion since we first met. the good news from my perspective is that in the lead finalized during , i meetings here, today think we have made significant agreeing to how our law enforcement investigators are going to work together, a we're going to exchange information, how we're going to go after the individuals or
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engaging in are cyber crimes, or cyber attacks. affirmed injointly principle that governments don't engage in cyber espionage for conversion gain against countries. that all i consider to be progress. when i said to the president who and what i say to the american people is the question now is our words followed by actions? we will be watching carefully to make an assessment as to whether progress has been made in this area. to the various tools that we have to go after those who are attacking our companies were trying to extract weee these greens or data,
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have traditional law enforcement tools, but as i indicated a wild back through executive action, i have also is intuited the ability to impose sanctions on individuals or enemies. where we have proof that they have gone after u.s. companies or u.s. persons. we did not, at our level, have specific discussions of specific cases. i did indicate to the president those andll apply whatever other tools we have in cyberolkit to go after eitherls, i retrospectively or prospectively. those generally are not directed governments. they are directed at entities or individuals that we can identify.
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they are not unique to china. those are tools that we are going to be using for cyber criminals around the world. -- the president indicated to me that with 1.3 billion people he cannot guarantee the behavior of every single person on chinese soil, which i completely understand. i cannot guarantee the actions of every single american. what i can guarantee though, and when i am hoping the president we are note, is that sponsoring these activities, and that when it comes to our attention that nongovernmental ,ntities are engaging in this we take it seriously and we are cooperating to enforce the law. the last point i will make on
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the cyber issue, because this is a global problem, and because, unlike some of the other areas, the rules in this area are not well developed, i think it is going to be very important for the united states and china working with other nations and the united nations and the private sector to start developing an architecture that governs behavior in cyberspace. that is enforceable and clear. it does not mean we will prevent every cyber crime, but it does or to serve as a template whereby countries know what the rules are, they are held accountable, and we are able to jointly go after them in this area. on john boehner, i just heard the news as i was coming out of
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the meeting. it took me by surprise. i took the time prior to this press conference to call john directly and talk to him. john boehner is a good man. patriot, he cares deeply about the house and institution in which it has served for the long time. he cares about his constituents. he cares about america. we have obviously had a lot of disagreements. and politically, we are at different ends of the spectrum. but i will tell you he has always conducted himself with courtesy would civility with me, he has kept his word when he made a commitment. he is somebody who has been gracious.
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most of four-legged he is inebody who understands that government and governance, you cannot get out of percent of what you want, but you have to work with people who you disagree with, sometimes strongly, in order to deal with people's business. whonot going to prejudge the next speaker will be. that is something that will have to be worked through in the house. reach outtainly immediately to whoever is the new speaker to see what his or her ideas are and how we can make progress and important issues that america faces. one thing i will say is that my hope is there is a recognition ,n the part of the next speaker
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something i think john understood, even though it was challenging to bring his caucus along, but we can have significant differences on issues, but that does not mean you should done the government, risk the not mean you full faith and credit of the united states. you do not invite your provincial financial crisis. new bill roads and pass transportation bills and do the basic work of governance that ensures that our military is operating and that her national parks are open and that our kids are learning. and there is no weakness in that. that is what government is. you do not get what you want 100% of the time. take half of it, sometimes you take a quarter of it. that is that i have learned in
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this office. i'm looking forward to working with the next speaker. in the next town, john is not going to leave for another 30 days. so hopefully he feels like getting as much stuff done as he possibly can, and i will certainly be looking forward to working with him on that. madam reporter has raised the cyber security issue. indeed the current for the international community is all persons with president obama and i have on many occasions exchange use of this. i think it is fair to say we reach a lot of consensus including new consensus. overall the notice states is the strongest country in terms of
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thought cyber strength. china is the world's biggest country in terms of number of web users. we are more than 600 million. cooperation will benefit both, and confrontation will need to -- will be losses to vote, because we need to carry out dialogue and exchanges to strengthen our cooperation in many respects and turn the cyber into a new growth source instead of a point of confrontation between the two sides. china strongly opposes the commercialtheft of secrets and other kinds of hacking attacks. side has concerns in this respect, but we conclude existing channels expressed those concerns. they take seriously the
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information. have the law enforcement authorities maintain a coalition of this matter addressed. we have broad common interest. we need to strengthen operations and avoid leading confrontation. during my current visit only get is fair to say that the two combine cybercrime have reached a lot of consensus. reachforward we need to further agreement on them and further point them on the ground. now, i would like to propose for
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china's central television republish -- reported to raise a question. >> i have a question for president obama. i have noticed that last night, meeting,president recently made the remarks indicated the u.s. will come to a rise of prosperous china, and support china to pay -- play a big role on the international stage. would you please elaborate for your office so far to land and naval reaching the target? we are more interested for the remainder of office what we can do to reach that goal. president obama: i think the provided aes have platform in the post-world war
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regionin which the asia thebeen able to stabilize conditions in which china was able to grow so rapidly were maintained. we're proud of the work we did after world war ii. both asia and were -- europe, to establish international norms and rules facilitated growing role trade, and connections in trouble and interactions. to help maintain the peace. the president, my goal has been
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to can is something you can do -- consistently engages china in a way that is struck it, to maximize opportunities for cooperation. that irepeatedly said believe it is in the interest of the united states to see china grow. to pull people out of poverty. market.d its a successful and stable and peaceful china can then serve as an effective partner with us on a range of all challenges. last night during our discussions i mentioned that as powerful as the united states is , the nature of the biggest challenge that we face is for
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terrorism or economic refugees. -- issuesnot asian that any one nation console. enough that because of our string and the size of our economy and yes of our military that we can play a special role and carry a larger burden. but we cannot do it alone. china's will has development challenges of its own. we are together. i think that can as long as we continue to recognize that there is a difference between friendly competition, which we have with some of our closest friends and allies, like great britain and , and competition that killed the playing field -- tilting it unfairly in one layer
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of the other -- way or the other. upholdire to international norms rules. these international obstetricians reflect their strength and power -- institutions reflect their strength and power. an area that we fully support and want to implement. reflective of strength. the same will be true only go to the united states. itsa is able to project capabilities in a way that can be extremely helpful in reducing conflict. in all of those issues, as well as education must science, technology.
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corporation is there a long as there's reciprocity, transparency, and fairness of the relationship. what i have said in past to the president is given china's ofnes, we like the number poverty inside of china. china as if it is still a very poor, developing country. it might have been 50 years ago, but it is now in our whole's -- a powerhouse. they have responsibilities and expectations in terms of helping thatd international rules is part of the deal of being on the world stage. your more to do. my gray-haired testifies to that. julie davis?
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thank you, mr. president. you do not want to prejudge the beaker. i wondered you could tell us was beaker boehner's resignation tells you about the republican party and your ability to work with congress and the remainder of your term, particularly solicitous coming at a time when you're trying to negotiate to no of her government shutdown. do you think you will be able to move forward with the congress on priorities like the budget land, planned parenthood, integration, that you were not able to address with speaker boehner in his position? and to the president of china, you have experience in economic downturn with the stock market crisis. investors have been concerned about some of the actions you take it to intervene in the stock market and with the currency exchange rate i wonder you can say which you can say today to restore confidence that the these interventions will not
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affect globally in the future? president obama: mfri said. i will not prejudge. i do not know who the next speaker was. is. i expect there will be a lot of debate within the republican caucus about who they want to lead them, and in what direction. it is not as if there has been a multitude of various where they sought cooperation previously. i do not necessarily think there is going to be a big shift. that speaker boehner sometimes had a tough mission because ere were members in his congress that sought
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weaknesse of any sort or betrayal. when you have divided government , when you have a democracy compromises necessary. i think speaker boehner had difficulty persuading members of his caucus to that. someully they have learned lessons from 2011. sought toime they introduce a non-budget item to come atet discussions that time it was obamacare comman agreed to shut down the government that purpose. it really hurt the economy, slowing it down. it caused a lot of hardship in problems for a lot of people. it turns out that government provides a lot of vital services. our military provides his
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protection. our agencies keep our air clean, and our water clean -- mark: you are looking live at president obama speaking live with president choosing paying -- xi jinping. betty: here's house speaker john boehner. advanced conservator performs that will help our children and their children to for now we are on track to cut government spending by $2.1 trillion of the next 10 years. we made the first real at halo reform in nearly two decades. we are protected 99% of the american people from an increase in our taxes. we've done all of this with a democrat in the white house where it i am proud of what we have accomplished. job than anything, my first is speaker is to protect the institution. -- nowf you know that or
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know that my plan was to step down at the end of last year. of 2010d in november that when i was elected speaker that serving two terms would have been plenty. year, itne of last became clear that the majority leader lost his election, and i frankly did not believe it was right for me to leave at the end of last year. so my goal was to leave at the end of this year. really on my birthday, to announce that i was leaving at the end of the year. but it has become clear to me that this prolonged leadership turmoil would do irreparable harm to the institution. so this morning i informed my resignues that i will from the speakership and resign from congress of the end of october. as you have often heard me say, this is not about me.
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it is about the people, it is about the institution. just yesterday we witness the awesome side of pope francis addressing the greatest legislative body in the world. heed hisat we will all call to live by the golden rule. last night i started thinking about this. this morning i woke up and i said my prayers, as i always do, and i decided today's the day i'm going to do this. as simple as that. that is the code i has always by committee to the right thing for the right reasons, the right things will happen. i know good things lie ahead for these houses in the country, i'm proud of what we are composed of and proud of my team. this is my 25th year here, and i have succeeded in large part because i put a staff together and a team together, many of which have been with me for a long time.
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without a grade staff from you cannot be a grade member, and you cannot be a good speaker. i'm going to thank my family for putting up with this all these years. who are now 37 and 35, their first campaign photo was in july of 1981. they have had to endure all of this. it is one thing for me to have to endure it, i have thick skin. and my wife, they have had to put up with a lot over the years. express my gratitude to my constituents, who have sent me here 13 times over the last 25 years. you cannot get here without getting votes. i say this often, people ask me what is the greatest thing about being speaker? or about being an elected
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official? and i say the people you get to meet. i get to meet thousands of people in my own personal district that i would never have met other than the the fact that i decided to run for congress. traveled onrs as a behalf of my colleagues in the party, i meant tens of thousands of additional people all over the country. you meet rich people, poor people, interesting people, and a newborn ones along the way. that 99.9% of you the people i meet on the road nicer thanuld not be they have been. it has been wonderful. it has been an honor toserve in this institution. --go ahead. >> [indiscernible]
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if you reached this decision last night, was their degree to which pope francis led you to this decision? >> no. was a emotional yesterday, yes i was. i was emotional and a moment that no one saw. the pope and i were getting ready to exit the building, and we found ourselves alone. left arm andbed my said some very kind words to me to kids andmitment education. me andput his arm around pulls me to him and says please pray for me. who am i to pray for the pope? but i did. >> but it wasn't the pope who
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the decision? >> it was never about a vote. i don't want my members to go through this and the institution to go through this, what i'm thinking about working out the door anyway. i'm entirely comfortable doing this. >> i heard you say before that a leader -- [indiscernible] >> that is right. followingy of people me. but the turmoil that has been churning for the last couple of months is not good for the members of the institution. if i was not planning on leaving here soon, i would not have done this. arehere are people who outside of this is situation who feel they have a victory here.
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i am glad i made this announcement at the conference with all my republican colleagues. it was a very good moment to help rebuild the team. i feel good about what i have done. i know that i every day tried to do the right thing for the right reasons and try to do the right thing for the country. >> [indiscernible] >> i'm going to be here for another five weeks. -- i'm going to leave not going to sit around here and do nothing for the next 30 days.
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there is a lot of work and easily done i plan to get as much of it done as i can before i exit. >> [indiscernible] island to the same decisions i would have made regardless of this. some members of your heart rate, and outside groups [indiscernible] had you just had enough? >> let me tell you. i would not describe it as having had enough. that is not it at all. when you are the speaker of the house, your number one responsible to the institution. having a vote like this in the institution, i do not think is very healthy. so i have done everything i can
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over my term as speaker to strengthen the institution. isnkly, my mood today another step in that effort to strengthen the institution. washington be different when you leave this institution? what can people expect the house and congress to do if you are not there? if the congress stays focused on the american people's priorities, there will be no problem at all. while we have differences between democrats and republicans, the goal here, as one of the leaders is to find the common ground. i talked to president bush and president obama this morning. i talked to all of my legislative leaders who a very good relationship with. the leaders have to be able to work with each other, trust each other, defines the following -- to and get things done
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find the common ground and get things done. if they continue on what is important to the american people, they will get along just fine. >> [indiscernible] >> i would say that they were shocked. i told mr. mccarthy about two minutes before i spoke what i was going to do. i did tell him five times because he did not believe me. i'm not going to be here to vote on the next speaker, but that is up to the members. having said that, i think that kevin mccarthy would make an excellent speaker an. >> first person you told? >> i told my wife. she said, good. [laughter] my chief and i staff top late
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yesterday. -- top late yesterday and he told him today might be the day. i told him i was sleeping on it. and so i told my wife i might make a announcement tomorrow. what do you mean? time to go. and is morning i woke up walked up to starbucks as usual and got my coffee and came back and read and walked up and saw everybody, and got home and thought yet today is the day. my senior staff was having a meeting at 8:45 a.m., and i walked in before i opened the house, and told them this is the day. it was going to happen someday, why not today? what advice do you give him
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to avoid the pitfalls you'll come across? >> i tell kevin, if he is the numbereaker, that his one responsible use to protect the institution. nobody else around here has an obligation like this. secondly, i would tell them the same thing i have just told you. you do the right thing every day for the right things will happen. you all know me, my colleagues know me. i'm straight with them. they may not like the answer they get, but they will get an honors answer everything will tightly come to my office. it is an easy way for me to do my job. [indiscernible] all of the stuff i read about in the paper. theally do not want
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institution heart, and i do not want my colleagues hurt. i do not want but my colleagues all -- put my colleagues to roll this. >> what will you miss? >> all of you. [laughter] i don't know what i'm going to miss, because i have not missed it yet. but i will certainly miss the camaraderie of the house. let me tell you another story. it was really interesting. maxine waters and, a democrat from southern california, came here 25 years ago in the same class. there is nothing about my politics and maxine waters politics that are anywhere near close. but yesterday about 5:30 p.m. she call my office. and she said, i
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watched you for 25 years we came together, and i watched your career. i watched you today, and i want to tell you something. i am proud of you. i have the best relationships on both sides of the aisle because i treat people fairly and i treat them honestly, so i'm going to miss my colleagues, yes. [indiscernible] several republicans i talked today say they don't think a new speaker will make any difference . >> as i mentioned earlier, the fact that i did this with my colleagues this morning, and then we proceeded to have an hour and a half conversation, i
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thought was a unifying moment. and the folks call for living by the golden rule yesterday, hope springs eternal. >> talk about what you think your legacy is and your accomplishments and what you will do. [laughter] >> i was never in the legacy business. you all heard me say, i argue a guy with a big job. i never thought i would be in congress, much less ever be speaker. but people know me as being fair, being honest, and being straightforward. trying to do the right thing everything -- everyday on behalf of the country. i do not need any more than that.
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>> [indiscernible] when you make your decision this morning, you have not have any chime of what to do in the future -- time to think about what you will do in the future. i have no idea. i know i am doing this today for the right reasons. in the right things will happen as a result. thank you. was this because of the house of representatives, john boehner from cincinnati announcing his resignation. the weight of the world looks like he is off the shoulders -- is off his shoulders. betty: he looks a time more lighter after making this announcement. it was stunning to almost everyone. mark: it is interesting because this is a man who seems to
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thrive on the political hand-to-hand combat on capitol hill. as we saw during the press conference, president obama had some very kind things to say about him. he loves his country and is a patriot. before we get to phil mattingly, peter has been standing by with us, very graciously standing by. can we get a quick comment from you about what you thought about the speaker? >> it is always easier at the end of the game. the president can say very nice things now that he is leaving. of course there is concerns that perhaps he resigned because he was not going to be able to hold onto his speakership, which leads to higher probability that the government will shut down next week. betty: that is top of mind for the american public, and particularly for people who have money at stake. phil mattingly standing by in washington for us outside the white house. you were listening along with the rest of us to his press
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conference. give your takeaway here? >> that is the most i've seen or heard of him in months or years since he took the role in january 2011. if you could write the script for the perfect don resignation -- john boehner resignation conference, that would be pretty much as. it was the perfect john boehner resignation. how this usually works is the lawmaker calls multiple people, warns 11 people, and it is a big production when it occurs. nobody over here know about it. john boehner relayed the story, and i've heard it number of people say that he found out two minutes before he walked into the private conference meeting and informed his lawmakers that this was something he did. went home, he thought about
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it, woke up this morning, he prayed about it, and decided that this was the right time. this is john boehner in the nutshell, and this is the way he and his team would want to go out. mark: speaker weiner did not anoint kevin mccarthy as his successor, but he did they he would be an excellent choice. is representative mccarthy at this point the likely successor? aids andking with lawmakers since this announcement, yes. kevin mccarthy has the ability to get people around him for a speakership run more than anybody else. the question is who will conservatives try to put up who won'tm, but also try to take kevin mccarthy's place. some lawmakers say this is the position that the far right wing will shoot for. kevin mccarthy is not one who is >> relationship with the white house, but is one who recruited a lot of these members who have
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been so problematic for john boehner up to this point. -- wanting top up keep in mind, while john boehner is leaving, there's still a government to run. >> with all due respect to the speaker and his announcement, we still have to stop their actions in shutting down government. clean,ortunity for a continuing resolution is an absolute necessity. >> across the conference but i have talked to, everybody thinks that this move think that there is no government shutdown. but what over the next speaker is, it will not be long before they are dealing with these types of you see situations as well its rotation as we will reach the debt ceiling, and he will be putting a short-term bill on the house floor next to that will only take us through november.
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he is facing challenges right off the bat. betty: is it problematic that he's sticking around until the end of next month? should we just get on with it? what happens now? >> this month gives them a transition time. lawmakers are going to want to run races for these positions. that takes time. it takes time to campaign internally. he is trained as a continuity to this process. first and foremost he takes the need to be the guy who negotiates with democrats off the table of the next speaker. he will take all those arrows next week when that clean funding resolution almost certainly passes. that leaves a clean slate for whoever is the next leadership team is. this is not an anointment process. he will not step up and become speaker. there will be campaigns and raises. when john boehner's doing right now is serving as the bridge to
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that point. mark: there was also the news this afternoon that is an obama and his news conference with the visiting president, what were some of the highlights to come out of that? >> the big focus, the big g takeaway was the climate agreement. china national the big issue underlying everything has been cyber. and presidentals obama saying they reach some sort of understanding. there would be a high-level dialogue between the two governments about what they are saying in the cyber arena if there is perception of attacks. the one thing that the president hinted at that is most important on this issue. actions speak louder than words. the u.s. does not necessarily believe what the chinese say
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publicly. negotiations and talks between the two countries are ongoing about some type of broader's agreement. there is a wild west situation. agreement is what both countries committed to reaching. >> thank you. us-china side of the equation i am curious to know how you feel how the visit has gone and what we heard from both presidents on the relationship. >> i believe with the last comment that actions speak louder than words. whether it is speaker john boehner or china if you believe markets prefer certainty to uncertainty, we don't know what is going to happen.
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the chinese intervention in their markets as well as what is happening in washington are all keys and further uncertainty which means there is going to be more volatility in the equity markets in particular. if china cannot turn its economy around, if there is still some concerns about the currency, how does that impact the u.s. and how much exposure does the u.s. have? >> prices are made at the margin. if you look at the commodity indices in general, they are. they have not rallied on this news. we are exposed in the sense that demand is weekend will continue to be weak because of the congressional uncertainty. it do not have fiscal spending and policy that does not help. the fed has said we are throwing in the towel. scarlet: given that we are waiting for actions rather than
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words. time with thise resignation are you still as confident, are you a bit more worried about the state of the economy isre going or did any of this make a difference to you? >> it has reinforced my priority coming into the day which is that the economy is slow. it has not been able to reach escape velocity. to put has not decided the jets on. when you look at general valuations that is a concern. i am not particularly bullish on where markets are heading right now. we don't have an indication yet that we are sliding off the rails. are you concerned about where the fed is headed? plots everywhere
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and people saying they did not hear enough from janet yellen yesterday. did you have enough to allay concerns and where do you think the fed is going forward? guest: it is a great cottage industry. sheink she feels [indiscernible] willtion will be low and continue to be low. getting rid of the uncertainty is probably not a negative but i don't think it will have much of an impact. rlett: thank you for joining us and for standing by with us for so long. sign off here. the politics of
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u.s.-china relations. our guest will be joining me day""bloomberg market continues in just a moment. ♪
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>> you can see the major averages are trading higher. the nasdaq is not hanging on to this.
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you can see what troops are doing the best. financials leading the gains along with utility shares. interesting utilities are rising in the face of rising rates. is weighing on the averages on the wake of that hillary clinton plan to cap prices. take a look at some of the best-performing stocks in the dow. also a shout -- snapshot of what is going on. the company's earnings beat estimates. sales coming ahead of what an -- analysts had been anticipating. also a reason prices. we are seeing the financials rally and that is why you're saying shares of some of the financials leave the dow higher. i mentioned janet yellen. sayingyear, we have been
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yield go higher. she is the latest fed official, the most important say that rates are likely to go higher before the end of the year. the dollar also seems to be reflecting that comment. for the week it is seeing its best week since mid-july. those assets are reflecting that. that is not a universal view at least as not -- at least not as reflected in the markets. this is world interest rate probability. basically this lets you know what the futures market is pricing. isthe december meeting it priced at 44%. that is a decrease from before janet yellen's comments. even though she is saying this is likely that rates will go up, it does not look like all market participants are vying that line. we still have a number of strategists who still think it will be 2016 before the federal
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reserve gets around to raising rates. thank you. let's get to top headlines. news that is sending shockwaves through washington. john boehner of ohio is stepping down. he plans to leave congress at the end of next month. the decision comes as he battles conservative members of his own party over the federal budget he is free to ignore republicans who say they are willing to shut down the government rather than keep funding planned parenthood. pope francis urged world leaders to take action on climate change during an address at the u.n. today. the pontiff touched on several talk it -- topics. calling for the elimination of all nuclear weapons. he address the relationship between the u.n. and the catholic church. francis: i can only reiterate the appreciation expressed by my predecessors in
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redefining the importance of which the catholic church attaches to this institution. which she places in its activities. that hen ki-moon says made people history by addressing the largest array of world leaders ever at the u.n. volkswagen has named a new chicken -- chief executive. after revelations of baked emissions test. fake emissions test. volkswagen may also have used software to fake diesel emissions testing and one point two liter engines, widening the number of vehicles under scrutiny according to germany's transportation minister who says the possible manipulations are under investigation.
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switzerland has opened a criminal probe into the head of soccer's worldwide body. they are probing allegations of corruption. 14 people with ties have in indicted and four others have pleaded guilty. vladimir putin anxiously asked for his upcoming meeting with president obama, the white house says. they have not seen each other in nearly a year and have not spoken one-on-one in more than two years. u.s. officials say the president vladimir putin about russia's role in ukraine and its military buildup in syria. they are lining up around the world to buy apple's newest --6s and 6ssix plus. can sales keep growing at the same pace? those are the top stories at this hour.
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china's president and president obama held a news conference at the white house rose garden today. among the topics, cyber security. announce obama: i can that we reached a common understanding on the way forward area and we have agreed that neither the u.s. by the chinese government will conduct or enabledy support cyber safed of intellectual property including trade secrets or other confidential business information for commercial advantage. in withwork together other nations to promote international rules of the road for appropriate conduct in cyberspace. get more analysis of president xi's visit. always a pleasure to have you. what is the difference between a common understanding and a tacit understanding that this is something that can happen? >> they have moved very
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dramatically from where they were several months ago to at least recognize there is a common problem. both sides are threatened by cyber terrorism or cyber insecurity or all sorts of detrimental effect that cyber can be used for. whether they can reach a , asific set of agreements to what each will do remains to be seen. the fact that they will have these talks in the agreed on these principles is a week step forward compared to where people were even several months ago. is the pending agreement because of the understanding that the economic havoc that occurs because of these thefts of intellectual property? bit ofink it is a little both. they wanted to reach agreement in this area to the extent they
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could. arei do think they also vulnerable on both sides. american companies are variable. when we have seen evidence of that. increasingly, china is developing its own intellectual property. a lot of chinese art desirous of having their government protect intellectual property. infrastructure is everything these days. fooling around or disrupting information could be harmful as well. do they understand what we are talking about is a national security issue? guest: indeed. it could be disruptive of those economies and the fact that the chinese and the u.s. are talking about it and have made progress and they want to develop a broader set of agreements.
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clearly, often good principles andnot easily transmittable to detail what the penalties , insane -- some cases you can caps on but in other cases they are wrote violators. both sites have an interest in moving ahead. areha penalties and methods . this will be important work out. the fact that there is a set of principles is a big step. that we find out this week china [indiscernible] what will that mean for the economy? : they have a problem in
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china. anyone who goes there can see the pollution in the atmosphere. politically it is very important. there are a lot of protests among people who are concerned about environmental deterioration. this is very important. the other part is it will mean some factories are going to be shut down. not shut down there will be major improvements in their emissions control. down well that slow china's economy? >> it probably will. factory was shut down. they're willing to do this. they are not going to shut down all the factories all at once. it will not be implemented and dumped on the economy. there will be a slow or perhaps not so slow process. they are reducing the number of take factories in general.
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they are moving toward a more service oriented economy. a pleasure.lways guest: thanks for having me. mark: still had the speaker of the house of representatives, john boehner announcing his resignation. more on that story coming up.
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mark: shocking news out of washington today. speaker john boehner will resign next month. joining me on the phone, a member of the freedom caucus. he opposed the reelection of john boehner as speaker. i would like to get your reaction to the news. you used the word shocking. that was a general sense of the
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republican conference room we heard john make the speech to us at nine. we were surprised that he would do so and he would do so as quickly as they did. the turnaround will be sometime next month in october. did you haveoblems with john boehner's leadership? we were in a lot of challenging situations whether it is the problems with the administration, whether it is the fact we have not had an administration that has been responsive to congress or to the american people, and for those reasons you see in the polls across the country as well that the american public is frustrated as mi with the direction that washington has been going. ofre's why you see percentage of the polling
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numbers show that both sides of the aisle from left and right, republicans and democrats feel a sense of frustration that we are not able to move things along. i am optimistic as we go forward. i wish john all the best and i am a mystic as we go forward that we will address those problems coming ahead. the: you mentioned some of problems, some of the stalemate that is taking place on capitol hill. is that all speaker boehner's fault or do you have memories of the party who have an ideological difference, split if you will, with the speaker and they would like to see things going a different direction? sayingthere is the old give credit where credit is due. if there is responsibility put responsibility where it is due. the responsibility of the stalemate we have had in washington for the last half a dozen years fits -- since squarely in the senate and
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specifically with harry reid who has said he would not move a single appropriations bill in even though it may pass in a bipartisan manner in the house, he would not move a myriad of other fails to keep the government open even though he may move in a bipartisan manner. if harry reid did not get what he wanted. althoughwatching know, republicans hold the majority in the senate you need half a dozen democrats to come on board and they have always said a resounding no because -- regardless of how bipartisan bill is at the time and that is the real frustration most of us have. thank you. let's get more perspective now. democrat maxine waters represents south central los angeles. she joins us live from the rotunda. thank you for your time. did this catch you by surprise? was somewhat
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surprised as were some of the other members. electedhner and i were the same year and we were in the freshman class together. i got to know him quite well. i called him yesterday before i knew about this announcement and i basically said to him you worked very hard. you became the speaker and you have always wanted to get the hope to address -- pope to address the house and so you got that done. you have really been quite successful in your career and i am proud of you. and so he told that story today when he talked about why he was, the fact that he was leaving. i am sure it will come to -- as a surprise to a lot of people because they do not understand that there are those of us who have relationships from the opposite side of the aisle and there are those of us who work the desk behind the scenes
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trying to get things done. mr. garrett is not one of them. mr. garrett -- mark: if i might, there is going to be a vacuum of leadership until the next speaker is chosen. do the democrats have a preference of who they would like to work with on the republican side question mark would it be mr. mccarthy? ms. waters: no, the democrats would not enter into that fray. the conference will have to get together and learn how to get along. they have been in disarray for long time because they have members who do not want to work for the common good. it is up to them to decide who they want. we will sit back and wait and see. speaker, spoke to the you said you were proud of him yesterday and you mentioned some people would be shocked to know about this. what was your personal relationship with him like? waters: not only did we come
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together to washington, we were in the freshman class together. i talked with him when there is a bottleneck in the committee where i serve as the ranking member, financial services. he knows the right thing to do, and oftentimes, he would move in a way that would be good for this entire house but the obstructions he has had from people like mr. garrett has caused a problem in the conference. it is not john boehner. it is that mr. garrett and others like him have not tried to get along with everybody. mark: congresswoman maxine waters, thank you. ay" continues in a moment. ♪
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mark: it is 11:00 a.m. in san francisco. a shocking announcement. the speaker of the u.s. house of representatives says he is resigning from congress at the end of october.
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what does this mean for an already fractured republican party? >> the meetings between president obama and chinese president xi jinping. are the two world powers now seeing eye to eye? mark: a busy day for pope francis in new york city. we will bring you the very latest. good day from bloomberg world headquarters in new york. -- itas been one of those is a newsday where you think ok, the first friday of fall come everything will be fine. then, the floodgates opened. brendan: it's all non-markets news.


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