tv Bloomberg Markets Trump First 100 Days Bloomberg March 17, 2017 1:00pm-2:01pm EDT
edition ofa special bloomberg markets where we focus on politics and policy during the first hundred days of the trump administration. i'm david westin. our focus will be on the trump local summit where the two leaders discussed a wide range of issues from trade, to currency, to innovation. we will be joined by a man who served as a u.s. ambassador, john emerson. he knows what is going on with germany and how they are reacting to president trump. but first, we are joined by tony cuchka.ut -- we have the first meeting between angela merkel and donald trump. have never met face-to-face that they have exchanged words at long-distance. they have not a was been flattering words. trump said her immigration was catastrophic. she criticized his immigration ban.
what eyes do they have to break to form this relationship today? tony: as we see it playing out here in berlin, she has taken -- the stance of not letting bygones be bygones, but personal stance. main focus has been, understandably for germany as a key exporter pushing back , what is seen in germany, very much as the trump's administration protectionist drift. bring in our colleague from the washington bureau. why is it relevant? it's not like germans are
flooding in the united states or vice versa. --s not really >> it gets a core issues in the relationship between u.s. and germany and particularly between the u.s., europe, and russia. the refugees really feel the issue of how the west deals with the syrian crisis. and has a deal with russian intervention in the syrian .risis about the refugees, they are the key issues they need to get over to create a productive relationship that deals with some of the trade issues, climate change, and other priority issues with merkel and president trump. david: given the viewpoint from donald trump's point of view,
what does it take to get a win today? -- that is ahim great question. we saw a little bit of awkwardness, the meeting in the oval office when they seems to decline to shake hands. i think a win would be a promise to keep discussing how to deal with the u.s. trade deficit with germany. a win for merkel would be getting trump to maybe stop cheerleading the dissolution of the eu the way he did with the brexit folks. tony, are you with us? can you tell us what a win looks like for berlin? tony: merkel will have to play a balancing act. bill is right. that is one of the things she is looking for. she is running for reelection right now. the election is in september.
she can't get too close to him. and obviously, she has to defend open markets. at least if there is not a truce, there is the beginning of a discussion of it as bill was saying. david: as she defends open markets, she rings reinforcements with her. oft is the significance germany coming along with her? she's talking about bmw. they have a big plan in the u.s. and it is part of the global economy.
this is a german company. and therefore we will penalize them. this is how the economy works. that is the point of having them along. the ceo will be making that point. david: our colleague from bloomberg, the team leader. bloomberg's german government editor is reporting from berlin. they may have not met face-to-face before but they have already engaged. they made one catastrophic mistake, taking all of these illegals, all of these people wherever they come from and nobody knows where they come from. that is the end of the quotation. angela merkel has denounced trumps actions.
, refugees. the resolute fight against terrorism doesn't justify of the particular origin or particular faith under general suspicion. ,iven that kind of history let's bring in john emerson. he has tried to soothe german anxiety over donald trump's election. he returned after being ambassador to berlin. thank you very much for being here, mr. ambassador. john: thanks for a much, david. it's my pleasure. david: what kind of challenges it for angela merkel and for donald trump? that they have had this exchange for long-distance. john: angela merkel is very
chill. she plays the long game. campaign, they targeted towards her. she is not going to engage in that. she will try to move forward. first and foremost, donald trump is someone who seems to react to people on an intuitive and personal level. her first challenge is to begin to establish that personal connection with a new president. we are showing a live shot of the east wing of the white house where there should be a news conference scheduled 13 minutes from now. john: these things always start late. believe me. david: take us beyond immigration. it's not really a bilateral situation in germany. agenda --s in this
john: number one, russian aggression and the situation in the ukraine. ukraine ended up taking up the bulk of the conversation in most of those meetings. secondly, counterterrorism and intelligence. maybe immigration hits on that because candidly, you will not of europeanressure immigration until you end the civil war in syria. ending the civil war is much more than simply attacking isis. my guess is, there will be a conversation on that. that was always taken for granted, the deep and mutually beneficial economic relationship between germany and the united states will clearly be part of the conversation here. that is why the chancellor brought along both the ceo of bmw and siemens.
german companies are responsible for over 700,000 american jobs. mostly, workers who are in trumps base of political support. i think that point will be made. president-elect trump made a comment about too many bmws. the fact is, it manufactures more cars in its plant in charleston, south carolina, than it does in bavaria. largest by dollar amount of auto exporter from the united states. think is the biggest employer of americans, over 60,000 americans work for siemens in the united states of america. think these points will be made. as it relates to navarro's comments about germany's trade deficit, my guess is the
chancellor and her team will make the point that there is a difference between the trade , they manipulate their own currency. coming from a country that happens to make things that americans want to buy. david: jobs, as we know, for president trump is everything. having a roundtable discussion on vocational training. growth. of economic both countries will be stronger if we keep cooperating. is this possibility of vocational training where germany has been educated on that? is this a win that angela merkel could give to donald trump? john: it could be yuge.
that one of the great things we can learn from germany. one of the great things we can learn from germany is this extraordinary dual track education system. and if we learn the trade, it is a public private partnership. the government pays part of it and the company pays part of it. they go to siemens, bmw, dow chemical. even american companies and germany have the apprenticeship program. they spend years getting their high school equivalency diploma and they learn the trade. it 10 or 15 years in, what is the retention rate of people that come to this program? it is 97 or 98%.
part of it is recruiting, , terminating, recruiting, and training new employees. thates right to the base the president was appealing to in the united states. the m wompanies like and volkswagen in chattanooga, tennessee, are trying to work on developing this program. we continue to watch the east wing of the white house, a live shot over they will have the news. focusare businesslike to on the numbers. but there is a personal side of this. you know angela merkel. how effective can she be in performing -- in forming a personal relationship? of angelaperception merkel is that she is pretty , and very much a scientist by the books kind of
person. what struck me is how incredibly personal and engaging and charming she is. and it makes sense. she grew up in a political system that you get to go out to the public and get lots of votes running for chancellor. my first meeting like the one that is happening today is the one that happened between president obama and chancellor merkel a couple of months after the allegations broke about the cell phone being tapped. it was not a day at the beach meeting. i was able to watch that relationship go from a little bit of chill in that first meeting to the closest personal relationship. and so i have no doubt that she has got the personal skills to
with someone who seems to relish personal relationships. and she seems to respond on that basis. has been our most recent ambassador to germany. let's get a check on where markets stand. julie hyman is here with the latest. julie: we are not seeing much drama here. the drama happening in washington today. a fascinating portrait of the relationship between angela merkel and barack obama. we not seeing much action here. a quadruple witching day, it happens once a quarter. it happens to cause an uptick in volume. about 20% above the average but not much price action overall. we are set for a weekly gain in we will take a look at bloomberg.
if you go for the past eight weeks where you are now set to the seventh game -- gain in eight weeks in what has been a sideways pattern. they have news in the past hour reported called c.t.s. and. they told that new service that bootslks with walgreens had been at a standstill. they were set to acquire fred's on here because it was part of this agreement, selling stores to get an agreement by the ftc. it is not good news for fred. to get a checkg on the ipo's that we saw in the past week or so. and there's not as much of a
household name. that is a cloud software company is the first day of trading today. $221 million in its ipo. to thebring you back story of the day, a quick look at the s&p 500 versus the dax here today and the s&p has outpaced the gains we have seen in the dax here. you can see the dax still up on the year thus far, but not quite as much as the s&p 500. david? david: thank you very much, julie. coming up, president trump and german chancellor angela merkel will hold a press conference after their first face-to-face meet ever. we will take you there live when it starts. this is bloomberg. ♪
david: this is bloomberg markets, trump's first hundred days with a focus on politics and policy under the new administration. i'm david westin. you are looking at the east room of the white house where president trump and german chancellor angela merkel will be giving a news conference. let's check in on the bloomberg first word news this afternoon. mark: as you mentioned, they held talks in the oval office today. trading climate change at the top of the agenda. they will hold a formal press conference momentarily. they will bring it to you live on bloomberg television and bloomberg radio. the president is confident he can bring around conservatives
that oppose the gop affordable care replacement plan. he spoke at a meeting today with the republican study today. theseent trump: all of no's or potential no's, they are now yeses. says he is 100% behind the plan. mark: this press secretary had a warning for kim jong-un's regime. thattary tillerson said they are considering all options to counter the nuclear threat and did not rule out a preemptive strike. .eading to china tomorrow theresa may accuses the scottish national party of the in -- of
being obsessed of nationalist. the scottish party has total vision. the referendum would be bad for scotland and bad for the u.k.. the full process will be triggered in the next few weeks. powered by more than 2600 journalists and. over 120 countries. as we wait for angela merkel's news conference, let's bring in white house chief correspondent kevin's really. john emersonack who's in los angeles. i am told kevin is not ready by john emerson certainly is. you have just come back from germany. it you spent four years there. what is the sense of the german people. john: the thing that struck me
one of the networks showed a poll that 88% of germans were favoring hillary clinton and 4% were favoring donald trump. the was at a time when support for the alternative for deutsche land, the anti-immigrant party was running 12% to 15%. of thoses two thirds supporters didn't necessarily support donald trump. there is a lot of concern in germany about this. numbers of probably gone up a but is part of the previous segment, the balancing act. develop, for the interest of our people, develop a good working relationship with this new president.
for what donald trump is perceived to stand for. david: is this what she thought it would be a year or two ago? how critical is her appearance with donald trump. how does it play back in germany and affect the political situation? if it looks like she caves on these economic issues. export fees or whatever, that will be a political problem for sure. i do think token, that the german people appreciate the fact that their
chancellor is really considered a world leader. if she is able to come out of this meeting and is getting enormous attention. that kind of coverage is on steroids back in germany right now. canhe extent that germany walk out of this thing with her head held high and being perceived as having walked in there and walked out of there, not giving anything, but come out of it with the beginnings of making progress on some of these issues. i think it will help her. east: we have kevin in the room of the white house. kevin, give us a sense of what we know is going on already. we have seen video of angela merkel with president trump. what do we know? we are expecting german chancellor angela merkel with
president trump to begin speaking before this press conference is set to begin. they had private meetings where they discussed economics and trade agreements. criticism forugh the european union as well as germany in particular. the sources inside the administration are telling me that it is going to come up. immigration. the leaders have had very different responses to the syrian refugee crisis and middle eastern refugees. that particular point is definitely expected to come up in meetings. especially when these global leaders take questions in an couple of minutes. just said, it sounds like it's a very tricky business for both angela merkel and donald trump where they want to be friends but they can't get too close to each other because they don't want to look at being soft on the other.
they have had a storied relationship. it then candidate trump criticized chancellor merkel several times on the campaign trail. they had quite a different relationship to say the least. as an adversary at times. relationship, it is delayed due to weather earlier this week. trade in particular david is what the message of this white house is pushing for. they feel they will be able to negotiate with various european leaders. and including chancellor merkel on trade, they feel it is going to be a component to this relationship. let's pick up on the trade kaman to go back to the ambassador. everyone that the
way the trump is looking at trade is to take a look at balancing trade deficits. it is china, japan, and germany. we'll put a chart appear because even though it's been getting better, they have been declining. how to the germans perceive this issue of the trade deficit of the united dates? states? united don't forget about german investment and all those jobs created in the united states by german companies. much of this trade deficit is financed by german capital markets. percentage ithat is, but it is a significant number. and because germany has no control over its currency. the currency is the euro. ofis completely independent anything the german government can do. their attitude is, we're are
making great stuff that americans want to buy. and that is why there is this trade deficit. that being said, i know from anding to the chancellor talking to the top adviser on these issues, there is a recognition that we need to -- the optics of this aren't very good and we need to do more in terms of what we can do together. is a great interest in having an american investment in germany. that is why president obama came to the hannover messe in april with chancellor merkel and spent a couple of days there looking at these kinds of dual investment opportunities and new technologies. there is a real opportunity there for most -- for both countries. david: a lot of people say
germany could do something about this. but by stimulating its own demand domestically, it has constructed a fiscal policy to really promote exports and has not promoted enough of the internal domestic consumption that would have equalized out that trade deficit. >> that was part of the message we were delivering to germany from day one when i was there as ambassador. they need to do more, invest more. it is beginning to crumble. 50% youth unemployment which is not in germany's interest. we were always encouraging them
to do that. i don't know if you've heard of the blacks zero. centerleft party, maybe even more close to the bernie sanders party. we need to invest we have to balance the budget. >> germany and the united states have incredible opportunity to deepen our partnership as we continue to develop a strong workforce in both of our countries. both germany and the united states are pioneering job training programs. companies have created revolutionary online courses. and for decades, germany has been a model for highly tussle
apprenticeship. it that's a name i like. apprentice. germany's youth and unemployment rate is much lower than many of the other countries, especially the eu countries. i welcome collaboration between our two countries and industry leaders. industry leaders as you know, chancellor. job trainingce courses including online courses, high school curriculums, and private sector investment. and other really well-paying jobs. can be a positive alternative to a four-year degree. so many people go to college for years. they don't like it. they are good at other things like fixing engines and building things.
i see it all the time and i have seen it. people thatext to were not necessarily good students but they could take an engine apart blindfolded. vocational training programs that would meet the growing needs and help us achieve greater prosperity. the german apprenticeship model is one of the proven programs to developing a highly skilled workforce. germany has been amazing at this. launched recently successful programs here in the united states. people as theg jobs are pouring back in. they are coming back in big league. we will try to strengthen bilateral cooperation.
i want to thank everybody in the room. ivanka is with us today. and chancellor, i want to thank you very much. it's a great honor to have you in the white house. it's a great honor to have you in the united states. david: this was recorded just a few minutes ago. he saw there on his left, the ceo of ibm on his right. then pence. across from him was angela merkel. not far from where this meeting happens. >> president trump as well as german chancellor angela merkel meeting with top business leaders including executives that bmw.
commerce secretary in attendance as well as vice president mike hence about trump as well as jared kushner partaking in this meeting. they tried to find an area of common ground. these were leaders have been on polar opposite sides of the in terms of immigration with middle eastern countries. this administration feels like they would be able to partner with companies like the m w as well as have a model for what germany has done. this is an issue that is starting to reverberate in echo chambers. talking about the issue of vocational trading in a roundtable with several journalists here in washington. there is no question that this administration is working to find some type of congress after
a very dismissive and tense relationship between these two world leaders. it will be interesting to see if whether or not they can emerge on that. that is no mistake here bmws at the white house. it is designed to send a signal that president trump believed he could ridge some type of political all of branch. president trump in detroit where you were, david. discussing how regulatory forces and measures could for growth in terms of auto dealers. jpmorgan ceo jamie dimon was in washington for that. part of the business roundtable meeting. he we heard from the president about apprenticeship and vocational training. ambassador,ent u.s. just cut through it.
is this windowdressing or to createsubstantial jobs? john: i think the apprenticeship program is way more than windowdressing. forve it a lot of credit the opportunities that have been created in germany and for the success of german manufacturing. president obama talked about this for states of the union ago. it is something his administration as well was focused on. bring ad trump could number of top ceos representing american businesses together and get them to agree and get congress to agree to fund some of these programs. is a dual track funding mechanism. it could be a big win when you look at training workers that not just forplaced
the jobs of the future but for the jobs of today. david: when these things are done, they are carefully planned and carefully staged. had jared me that we kushner. what is the message the president is trying to send their? kevin: those folks that we just mentioned, the ceo of dow chemical, the ceo of ibm. .alesforce clearly trying to send a message that not just in terms of the notgreement they had, let's
downplay them. the ability to work together. the common ground is going to be in terms of technology and in terms of the auto industry. we will go away from this president taking questions. some of the topics that could come up include not only isis and immigration policy but health care. that will besident able to a congress the rest of the policy legislative agenda. in order to get the regulatory financial policy, he has to get to health care.
david: ivanka is seated immediately to chancellor merkel's right. she has a prominent and important place there. john: i want to jump in on that. the objects of this are important as you suggest. of those american ceos you mentioned, i met and worked with in germany because they all have big presence. i don't think any of us assume the climate change would of been an issue and come up in the bilat. it's a question worth looking at. david: you be a good reporter, john, actually. besides being ambassador. john: i got fired, so. david: you have a better office, i believe.
issueshere are a lot of on the agenda here. these allegations in the white house, germans getting an unfair advantage. i guess a basic question is, who is calling the shots. when it comes to currency, when it comes to trade, who is making the decisions? john: it is a hugely important question. his name out of consideration because it is exactly of that question. mnuchin has a role. wilbur ross will have a big role. the trade representative. definitely not a
mainstream person when it comes to his views on international trade. and the global economy. my sense from talking to folks back there is that wilbur ross man fact be more equal than most. it may actually be a good thing. it is unclear. the president likes to do things and have a little competition among aides and advisers. and then see what comes out of them next. kevin is in the east room of the white house where this was supposed to take place any minute now. same question to you. , whatask president trump would he say about who's in charge of trade policy? president trump is in
charge of policy and michael mckee asked that the other day about what markets should be reacting to. , his topdent trump lieutenants on the economic council. in terms of the rhetoric that we from secretary mnuchin, i think it has been a much more measured type of rhetoric. this is the common theme when you take a step back in terms of how market reaction has adapted to the rhetoric coming out of the white house. i think there is no question that when you start to parse the secretary mnuchin is saying, it is much more in line. frankly, the adjustment
tax and several other policy issues. it is expected to begin momentarily. he and president trump will take questions from reporters. a topic we are anticipating again. on health care again. all comments that we could hear from president trump when he and german chancellor angela merkel begin their remarks momentarily. david: we will go immediately to the news conference as it is a begins so no one will miss any of it. thatour answer, kevin, is there are certain ramifications.
kevin: they told me that they there are proponents of these trade agreements. this is the leverage they have in these negotiations. we heard frequently at campaign rallies about president trump's frustrations with the chinese government officials about currency manipulation. we have seen them stalling on particular points. we also heard against german officials and chancellor merkel, there were and are these meetings with his misleaders and foreign government officials is only showing that they are willing to negotiate, willing to have those conversations that were underway earlier today.
all coming to the table despite disagreements on immigration policy and on trade. david: the news conference should happen any minute now. what about the possibility that the tpp might come back in a different guise is maybe the trump pacific partnership. does that seem within the range of possibility? >> absolutely. notonald trump said he was against trade agreements, just bad trade agreements. the tpp was a great potential deal for the united states, business in america. countries a lot of together on things like environmental policy, labor rights. issues democrats have been talking about for quite some time. , mexico is ang
if you look at the states president trump wants like pennsylvania, michigan, wisconsin. these are states that could benefit from vocational training reform that these administration officials feel that they could move data on. they're looking to germany and the success in germany. as a foundation. you look again at the states they were able to win on the campaign trail, this is an issue that has bipartisan support. the new chairman is at the forefront of this as well. ifwill be interesting to see they can use countries like germany as a benchmark for that. there are such clear differences on trade and immigration.
david: let me ask an uncomfortable question. you have served and democratic administrations. is it conceivable that donald trump could pick up something dropped by the democrats. i come from michigan. i come from flint. we did not do enough for the workers kicked out. this administration come in and fill that gap? bottom line is the democrats need to figure out how they lost a key component to what had historically been their base, working men and women there is no question there is a challenge there. people on both coasts, mainstream democrats and mainstream republicans perhaps celebrated the benefits of
globalization and the technology revolution without focusing enough and not enough on the fact of those that were displaced. the technology revolution and the rapid pace of globalization. perhaps not such elegant phrasing. if i am a working person that lost my job in the midwest, at some point, i may begin to ask the question, is this what i voted for?
i was actually voting for getting my jobs back. that is why i think this will vocational training focus today, if it is real. if it gets followed through on and implemented, could actually be a great win for the country. emerson,bassador john and kevin in the white house. a quick check of where markets and with julie hyman. julie: we have a trading range for the major averages. the daily trading ranges behind me and it looks like the second smallest range of the year with a 6.5 what swing in the s&p 500 today. i want to look at it today chart. -- a two-day chart. in my beginning a takeover approach from las vegas sands. the company denied speculation but still, it is up about 5%.
not entirely clear why. it might've been a meeting with analysts. materialized.f and today, it continues the march upward up about 15%. we have a big drag. an experimental cholesterol drug. some estimates and goals were 24%. it appears to be once behind the pullback. life-sciences is bouncing today down along with other medical toolmakers, device makers, on concerns of president trump's proposal and the effect on companies that are exposed to research because it includes cuts to the national institute of health. a little bit of a split trade today. we wait for president
trump and german chancellor angela merkel's news conference. let's ring in kevin cirilli in the east room of the white house and bring back former u.s. ambassador john emerson. let me go back to where we were when we started this. it was important to focus on russia, and on national security. what about the issue of nato between angela merkel and donald there isko disagreement on the level of spending for military. this was an issue brought up by president obama and every single one of the bilateral meetings we participated in. initially, there was resistance. she said our economy is growing so our absolute dollars are growing. then we had the nato summit in wales in 2014 where everyone of the nato members agreed that we
would get up to a 2% rate of spending for defense measures. of a certain type that could be of value to the nato alliance. germany has started to move in that direction there. 8% of the gdp. they are a framework nation now. responsible for lithuania. to have troops ready to go. they have been making some progress. president trump will raise the issue. issler merkel will say, this where we were and this is where we are today. i think we are at a place where that will be a less contentious issue in the meeting then it might have been if it took place
three or four years ago. david: vice president pence went over to impart his mission to reassure nato allies. they made a lot of good noises. the people came away with some skepticism because donald trump himself wasn't saying it. is that part of what the president has to do? give that assurance? he has to highlight the disagreements that they have with german officials and with -- while being critical of these governments, trying to send assurances. his exact position. there are moments away. inside the east room where they are anticipating questions about
their differences on several policy issues like immigration, trade deficits. they are sending that political signal. they could find areas to work together. pioneer with top executives. business leaders. it's part of a broader trend. he has been critical of several foreign governments to say the least. time when the administration is trying to pass several key policy initiatives on capitol hill, including health care reform which, in order for him to get to the other areas of his legislative agenda like the regulatory environments and tax reforms, he needs to pass health care.
that is why some of the other storylines we have been following have concerns about russia, concerns about mentoring -- meddling in the election and have impact. face thisent could moments away and is expected to take questions at this press conference. john emerson, come back to you. the president is really drawing a line in the sand. devoted to the military, is that doable? is that conceivable? john: it is what they achieved, committing to do that in the wales conference. are all 28 going to get their? i would guess probably not. there are some that would be falling behind.
germany is seen as a leader. it is a wealthy country. germany isn't even doing it, why should we? i haven't seen the most recent numbers. -- most will get there by the assigned date. the agreed-upon date. you will probably have some laggards. looking live at the east room of the white house waiting for the president and german chancellor to come out. does angela merkel have more at stake in this summit than donald trump does? she has an election coming up and donald trump has already won his. john: that's a pretty good way to put it.
everyone has more at stake because we're the most powerful nation in the world. comment and raised eyebrow and tweet gets so thoroughly analyzed around the world. more so than here in the united states. it's one of the things you learn as an ambassador. she has to walk that line between building a good relationship and not looking like a supplicant and not looking like she is backing down on certain issues. i had a chance to watch her pretty closely for four years. just the tonality and the optics of watching that meeting in the cabinet room with the business leaders suggests that they are moving in that direction. a similar question to you
kevin in the east room of the white house. ?hat is the biggest upside clearly, president trump doesn't want to have any political hiccups. trying to find common ground. that is why we are hearing about vocational training. let's take a step back. germany and that trade agreement, we have to remember that stephen mnuchin yesterday saying publicly that this administration does not want any trade wars. it might put him at odds with the likes of people like peter navarro. when you listen to secretary mnuchin or secretary ross, they are clearly signaling that they are willing to have these negotiations with foreign leaders in terms of working with them.
the fact that china has been labeled a currency manipulator is further evidence that this administration, while having that difficult tough talk on they are still willing to bring them to the table. that is why you're seeing people of them out and head scene, and that is a new development. because the previous global leader summits we have seen in this white house ahead of foreign policy leader meetings, such as with the japan prime minister or even chinese global leaders coming of not seen these companies at that meeting. that is a new development at the 80, and a new signal from the white house to the germany administration that this president has been critical on administration and trade -- immigration and trade policy, but they're going to try to bridge the gap. whether or not it works we will have to wait and see, but we wi