tv Bloomberg Markets Americas Bloomberg March 17, 2017 2:00pm-3:31pm EDT
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 some of answers to
those questions, as they will likely to be asked -- likely be asked. kevin: and if the g-20 meeting, they are -- david: and at the g-20 become a they are talking about tray specifically. what is going on over there you go as i understand it, they would rather not talk about it at all, china says they do not want to talk about fair trade. what is likely to come out of the g-20 and what is the difficulty level for steven mnuchin over there? kevin: i think this present was able to ride that populace, nationalistic weibel way to the white house. populace, nationalistic wave all the way to the white house. there's no question that they feel that they have the political capital, so to speak, in order to send those to girls worldwide that they want to renegotiate several of these
worldwide thats they want to renegotiate several's of these deals. -- several of those deals. i think when you see the reaction and the response to how they responded to immigration is so juxtaposed with trade, and it is at the heart of the populist movement. that key difference is also on display. so we will try to emerge from this with some new development and some new type of agreement, or just a framework for a new agreement. he believes he has the political capital to do that, but i cannot stress this enough -- just the fact that he invited those ceos ahead of this meeting is clearly designed to showcase a political olive branch of sorts as they move forward, and again, treasury secretary mission -- steve mnuchin saying how the mark critz -- markets should
interpret a lot of the signals. david? david: john emerson, foreign investor from germany to the united states. i'm sure he's right, it is about trade, trade, trade. but it is a tricky piece of business, because the present does president wants to bilaterally trade -- for that is a europewide agreement, not bilateral. look at our glimmer agreed to? -- what could angela merkel agree to? she could use her influence in the eu to push towards a good multilateral trade agreement, but you are dead right. and by the way, in the u.k. they talked about doing a trade agreement with the u.k.. they cannot start negotiating out until they are actually of the eu. you can have pulmonary conversations, but just foriminary conversations --
conversations, but you cannot enter into a collateral -- bilateral trade agreement with the eu. and when a country hosts the g-20, they run up to that and have a series of ministerial scum and the point of those meetings is to develop those consensus-based issues that will then become part of the reporting or the agreements that come out of the g-20, which will take place in july. partnk what mnuchin was a doing was -- let's take this whole thing about terra soft the table, because we are not going to find a consensus on that. fs offrorists -- tarrif the table, because we are not when to find consensus on it. this is a brand-new policy of the administration. one other thing i was going to my view on immigration would be is i would be surprised if that came up for more than 30
seconds in this meeting. as you, there is not immigration issue between germany and the united date. ofhink trump criticism germany's policy on immigration is more poor domestic suction, to basically say this is crazy, i have no intention of doing it domestic comparison, to basically say this is crazy i have no intention of doing it here. david: so as we get right for the news conference, we are seeing business need -- leaders walk into the room. you mentioned consensus. the only way to redo trade in germany is by going through the eu. aen i tried to do a test with try to do a deal with canada, a small art of belgium held it up -- part of belgium -- when they tried to do a deal with canada, a small part of belgium held it up. carter statements to
present in my speeches was the eu has to get its act together as it relates to these trade agreements, and the fact that this could put the canadian trade agreement on hold or even ridiculous. the other thing is when you are negotiating with the eu, cecilia mull strum, a very good negotiator -- she has three or four different bosses. and we get to a point where our trade representative would reach an agreement with her, and she would have to come back and say nevermind, the guy from rance does not like it so we have to go back -- france does not like it so we have to go back to the bargaining table. the eu has to change how it approaches these agreements. be something to like a t tip to begin negotiations again. good things were accomplished,
and just as you were suggesting with tpp, that could create a foundation for a continuing discussion. you are dead right. the eu has a lot of work to do on the side as well. they have to show the united are seriousthey about negotiating a new trade agreement and we are not going to run into roadblocks, roadblock, roadblock situations. david: the news conference looks like it is getting close. as you watch this, what with the several -- subtle indicators be about how these negotiations went? kevin: obviously, we talked about incident discussions that -- sensitive discussions that could have come up. whether one of the foreign leaders addresses those in a dutch we had a discussion about way,but this is a concern or whether they do not address them at all. and talkoth walk out about all the great things they discussed, that means maybe they did not get a heck of a lot done
but the meeting was a good first step. if they get out and say and there are clear tensions or comments made about perhaps they will do something with a border adjustment tax or fee, perhaps a shot about nato funding or something like that, that will suggest a bit more of a contentious relationship. i have to tell you, i am a big believer in body language. i think we will see a lot and get a sense from that. president obama and president at each other in adoring fashion, and my guess is we will not see that today. body language will tell us a lot . and then you get the questions. typically, there will be to questions from the european side, two from the american side,. those who we multipart questions, and as often as not, they have more to do with the domestic politics of the leader than they do about the meeting
themselves. that will be something interesting. your colleague in washington has been suggesting it is probably a lot of top -- talk about health care focused to donald trump. john: and as you are talking thet right now, we see president, reince priebus, chief of staff, if on trump and jared kushner, her husband -- a trump and her husband. where do we stand? kevin: we are moments away from when president troubles be to angela merkel -- trump will speak to angela merkel. they have differences on immigration and trade policy, but they are trying to find common ground on areas such as vocational education. president will face reporters questions following the remarks, which are set to begin.
john: thanks, kevin. we are now seeing president trump and german chancellor angela merkel on his right walking in for the news conference that will begin momentarily. they will give opening remarks. pres. trump: thank you very much. chancellor merkel? it is a great honor to welcome you to the people's house, the white house. our two nations share months in --mon, including our desire much in common, including our desire for security, prosperity, and peace. we just concluded a productive meeting with the german and american companies to discuss workforce development and vocational training. very important words. has done an incredible job training the employees and future employees, and employing
employingfacturing -- its manufacturing and industrial workforce. it is crucial that we provide our american workers with a outlook.eat employment sure thatdes making we harness the full potential of women in our economy. my administration is in the the americanilding industrial base. a stronger america is in the interest, believe me, of the world as a whole. i reiterated to chancellor merkel, my strong support for -- as well asas the need for our nato allies to pay their fair share for the cost of defense. many nations bow vast sums of vast sums of money
from past years, and it is unfair to the united states. these nations must pay what they owe. andng the meeting, i thanks -- think to chancellor merkel for the german governments commitment, and for contribute in at least 2% of gdp. it would like to thank the chancellor for her leadership and its efforts in afghanistan. this has come at significant cost, including the lives of over 50 german soldiers, who sacrifice -- whose sacrifice we greatly honor. i also appreciate chancellor merkel's leadership, along with the french president to resolve the conflict in ukraine, where we ideally seek a peaceful solution. most importantly, our two
countries must continue to work together to protect our people from radical islamic terrorism. and to defeat isis. i applaud chancellor merkel for germany's contributions, both civilian and military, as they counter isis coalition members. we also recognize that immigration security is national security. we must protect our citizens from those who seek to spread terrorism, extremism, and violence. inside our borders. immigration is a privilege, not a right. and the safety of our citizens must always come first. come first, without question. over lunch, the chancellor and i will talk about our economic partnership. we must work together towards fair and reciprocal trade policies that benefit both of
our peoples. millions of hard-working u.s. citizens have been left behind by international commerce, and together, we can shape a future where all of our citizens have a path to financial security. the united states will respect historic institutions and recognize the free -- right of free people to manage their own destiny. the close friendship between america and germany is built on our shared values. we cherish individual rights, uphold the rule of law, and we .eek peace among nations our alliance is a symbol of strength and whopper ration to the world. -- cooperation to the world. it is the foundation of a very, very hopeful future. thank you.
-- chancellor merkel: ladies and gentlemen, it a great privilege to be here with president donald trump. in the periods -- moments leading up to this visit, i say is important to talk to one another are not about one another, and i think our conversation proved this. we talked about the international situation, also the apprenticeship programs when apprenticesceos and at around roundtable, and regarded the shared interest that we have. let me look back into the past. we, the germans, oh a lot to the united states of america,
particularly in regards to the economic rise of germany. this is primarily due to the help of the marshall plan. we were also able to regain german unity after decades of the united states standing up for this together, with our allies, and standing by our side during the. of the cold war -- moment of the cold war. and we are glad that today we can live in peace, freedom, the unified country. i was ratified to know that the president had aligned how important he think nato is, and it was not without very good reason that we said during our summit meeting in wales, that also germany needs to increase expenditure. we committed to this 2% goal until 2024. last year, we increased spending by 8% and will work together again and again on this. we said that obviously, defense and security has a lot of
different assets to it. supporting, it is missions in africa, for example. on other hand, it is supporting developmental assistance. we continue to be in conversation, but what is important for us today is that we were able to talk about theanistan, talk about what president quite rightly said, the continuing missions of germany in afghanistan. i'm glad the united states are intending to continue to the afghan mission as well. against, we fight islamist terrorism. germany will step up its work and continue its work in afghanistan and also in syria. we will monitor the situation they're very closely and work on -- they're very closely -- there very closely and work on
political solutions. i'm gratified to know that the american administration and also the president personally commits process.o the many do come to a solution on this problem. there has to be a safe and secure solution for the ukraine. the relationship with russia has to be improved as well once the situation underground there that's on the ground there is clarified. but we have not unfortunately made the headway that we want to. want to work with our experts in the next two to come up with a decision. and you know we will be hosting the g-20 visit and the summit this year, and i'm glad the president has committed to attending the summit. we are going to talk at some length over lunch about the issues. we say that trade has to be rendered fairer, that has to be a win-win situation. we can talk about the details.
we can already see what happened when we had in exchange -- an exchange with our ceos and apprentices. what potential can we untapped that our economies have? particularly in this year, we are transiting from traditional manufacturing to industry for , socity building skills important. incidentally, not only for young people but those who might have lost their jobs and needed to be rescaled in order to find a job again. that is an issue i know is very important for you here in the united egg, but also important for us in germany. i can say there are a number of issues that we will continue to cooperate very closely on the level of x words, but also on our level. we have a very good worst we aree of views, so looking for to the talks will have over lunch. thank you. pres. trump: thank you very much
will do a couple of questions. americans know that you are promising what to do about health care. i wonder if you could tell people where your highest -- [indiscernible] >> the gentleman needs to use a microphone. >> [indiscernible] >> i was wondering what you would think of that if it is good for the war, you go -- or what jacob somebody we have a wonderful group of evil meeting trump: we have a wonderful group of people meeting later, and they went to all yes.w -- no we have a lot of yes coming in.
we have great health care, and it will be passed my believe. substantially and pretty quickly. it is coming together conservativeour groups, other groups. everyone wants certain things. in the end, we have a great health care plan. isave to tell you, obamacare a disaster. it is failing. i was in tennessee and we had a tremendous crowd the other night. half of the state is uncovered. the insurance companies have left. the other company has one insurance company that will probably be bailing out pretty soon as well. they have nobody. you have many states that have .ne or states that have none obamacare will fail, fold, and close up very, very soon if something is not done. i have often said politically the best thing i can do is absolutely nothing. wait one year and even the democrats will come say please, please you have to help us. it is not the right thing to do for the people.
we have a plan that is getting more and more popular with the republican base, the conservative base, and with people generally. the press has cover the desk covered it very inaccurately. people are covered well, and it will be a model to be looked upon. >> [indiscernible] pres. trump: at will tell you after we are finished. [laughter] >> thank you very much. to represent german interests. i speak with the president of the united states, who stands up for this right, american interests. that is our tasks respectively, and i must say that i was very gratified to know that there was a lot of hospitality that i was received here. we held a conversation where we were trying to address the areas we disagreed but trying to bring
people together and show what is ours and went -- our vantage point and the american people people'smerican vantage point. everyone is expecting that their leader is going to do the best for their people. people have different abilities and characteristics, different origins, have found their way and politics along different pathways, and there is diversity, which is good. sometimes it is difficult to find copyrighted, but that is what we have been elected for. if everything went like that without problem, we would not need politicians to these jobs. >> madame chancellor, given the experience of the gdr, you are saying your company is confident that worlds will fall.
how dangerous do you think this theationist policy is with u.s. president, and also that he andks that the eu -- doesn't not deal with the eu in a respectful way. mr. president, do you think this is going to weaken the european union, and wire uses cared of diverse city in the news and the diversity ined of the news and media? things that cannot be proven, like the fact you have been wiretapped by mr. obama? pres. trump: a nice, friendly reporter. first of all, i do not believe in an isolationist policy. i also believe in a policy of tray that should be a fair policy. united states has been treated very, very unfairly by many countries over the years, and that will stop. isolationist, i'm a free trader, but also a fair trader. our free trade has led in to a
lot of bad things happening. look at the deficits we have and all of the accumulation of debt. we are a very powerful company -- country. .e are a very strong country we will soon be at a level where we have never been before. our military will be strengthened. but i am a traitor. i am a fair trader, and a traitor that wants to see good for everybody worldwide. i am not an isolationist by any stretch of the imagination. i do not know what the newspaper you're reading is saying, but that would be another sample of, as you say, "fake news." >> allow me, if i may to come present in the following terms. we haven't yet had time to talk at a great length about economic toues come but i am favor
the success of germany in the economic area, but also on security and peace. at the success of germans have always been one where the german are one side of the coin, and the other side of the coin has been european unity and integration. that is one thing that i am deeply convinced, and i'm not only thing this back home, but in the united states and here in washington in my talks with the president. secondly, i believe that globalization ought to be shaped in an open-minded way, but also in a very fair way. freedom of moment -- movement in the european union is a important element of our economic programs. peace has been for many decades. wareuropean countries aged -- wage war against each other for many years. we have to protect our external borders, and there we have to work on the basis of mutual interest with our neighbors.
migration, immigration, integration, that'll have to be worked on. traffic has to be stopped, but this has to be done by looking at the refugees as well, giving them opportunities to shape their own lives where they are, help countries who are not at his ability to do so. sometimes because they have civil war. i think that is the right way of going about it. ans is obviously we have exchange of views about, but my position is the one that i have just set out for you. pres. trump: i might add that we for factoriess coming back into the united states, many jobs are coming back to michigan, ohio, pennsylvania, a lot of places where they are losing jobs. and we will have a different policy. it will be a great policy for not only the united states, but also a great policy worldwide. i look very much forward to it.
>> [indiscernible] what exactly do you think or of internal trade or [indiscernible] pres. trump: i think we have a very unified republican party. we have the presidency, the house, and the senate. are getting along very well, and if you are at the meeting i just attended, the one where we or some i know votes votes, and within
30 minutes everyone was very much on board. we have a very unified party, more unified than at the election. when you see they talk about me i be -- and very popular this week within the party, because we have our highest numbers that i have ever had in the party. is a great unification, the health care is a difficult subject, andmplex a subject that goes both ways. you do something for one side, and the other side does not like it. it is summing that has come together very well and will be very, very popular, extremely popular. on trade with germany, i think we will do fantastically well. right now, i would say that the negotiators were germany have done a far better job than the negotiators for the united states, but hopefully we can even it out. we want victory, does we do not want victory, we want fairness. that is all it wants.
germany has done very well in its trade deals with the united states, and i give them credit or that -- for that, and i can speak to many other countries. china, virtually any country that we do business with is not exactly what you would call good for our workers. at the horrible nafta transaction. nafta has been a disaster for the united states. a disaster for companies and in particular, a disaster for the workers. a lot of companies just moved. are probably the reason i am standing here. that and maybe the military, building up our military, which we will do and we will be stronger than ever before, and hopefully not have to use it. but we will be stronger and perhaps far stronger than ever before. it is probably the reason i am here, when you talk about trade. i think will be a very different country, i think we are going to great values, but in
terms of our military, it will be much stronger and our trade deals will be good, solid deals, not deals that lead to closing plants and tremendous unemployment. thank you. >> when you speak about trade agreements and the european thoseand negotiating agreements for all mems of the european union, there is also input by the states, they bring to the table was important to them. those agreements for all mems of the european union, there is also input by the states, they bring to the table was important to them. we have aligned in the german business community and have made the experience that any kind of agreement that we have concluded at the very latest with south
korea brought us more jobs, actually. people were very concerned about losing jobs in the automotive industry, but in the end it turned out that both sides benefited, and i think it is only fair that concluding agreements that both sides when is -- thosei think of the policies we need to be policiesn in the between the united states, germany, and the eu. we have just concluded our agreement with canada and i hope we will come back to the table and talk about the agreement between the eu and the u.s. again. >> thank you. madame chesler, a question addressed to you. madame chesler, a question addressed to you. today, we are talking about trade. the president in the past also said that he does not like multilateral trade agreements, but prefers bilateral trade agreements. from the eu's point of view, do you think this is a bilateral trade agreement with washington
on one side and the eu on the other side? do think the problem is that the dust party and the europeans have a different understanding of what a multilateral trade agreements all about? >> we reject the wiretapping that british intelligence was either responsible for it or involved in it. after these claims are rejected, what is your take on that? do think is a mistake to blame british intelligence for this? and from time to time, the sent, do youou regret them? pres. trump: very seldom.
very seldom. we have a juventus group of -- term of i can get this group of people that can get around the media when they do not tell the truth. as wiretapping by this past administration, at least we have something in common, perhaps. [laughter] and just to finish your question, we said nothing. a certain,s quote very talented legal mind who was the one responsible for saying that on television. i did not make an opinion on it. that was a statement made by a very talented lawyer on fox, so you should not be talking to me, you should be talking a fox -- to fox. >> i believe the president has
clearly set out his philosophy as to what trade agreements have to bring about for the american side as well. i personally do not think that germany needs to negotiate and not be with the european union. we have the commission that negotiates on behalf of member state, sinnott will not prevent us from concluding. qualify as a bilateral agreement between the eu and the united states if we had it. the question is will it be of benefit to both countries are not, and can free trade agreements with the united states of america -- they have not always been that popular in germany either. there have been less demonstrations against this free trade agreement in the united states than in europe, and also in germany, so i am very glad to note that apparently the sort of
perspective on that has changed a little bit at least in germany as well. pres. trump: thank you very much, great honor, thank you. >> you have an watching a joint news conference between president trump and angela merkel. this is bloomberg markets. on scarlet fu. of -- and we heard a lot about nato, production, and immigration. also some more domestic topics there at the end. to you listening to this dialogue between the two preeminent leaders of the western world, what was their takeaway? they try to lower the rhetoric, seem like they're on firm footing of the relationships that matters to
both countries. they're not talking in great detail about trade. they will have those discussions over lunch, and i assume those will get a little more substantive. but the atmosphere is they are a greato convey is partnership between the u.s. and germany, and they come was to me that the german press questions -- they relish the opportunity to talk to donald trump and ask the questions that had been asked by the u.s. media long -- four months, and now they got the chance to ask those questions. and the president got to bring in the history of the u.s. eavesdropping and wiretapping germany, saying at least we have that in common. >> that was pretty astute on his not, and i'm glad it was going any further. the bottom line is this was their first personal meeting. it will be interesting to see over the next hours and days of their is any more that comes out
of the nonofficial channels of how this meeting went, but the atmospherics of this press conference say it was pretty positive. oliver: how do you feel about what we saw between the two compared to trump with trudeau or abe? it seems like ideologically, they are most opposite. >> that would be true. i would not underestimate the difficulty of language as well. trudeau, it is more easily to communicate with him, is easier touage detect. there is a more natural affinity. they were -- this was a feeling out process, and certainly angela merkel was a very measured in her comments. scarlet: what did you make of the body language? a reporter noted that hugh was wearing -- donald trump was
wearing a near peers. -- your piece. think he has been told that you need to hear what the other while youer is saying are standing there, so he used his earpiece. oliver: the one time he got a bit of a chuckle out of merkel, regretsaid he rarely his tweet, she got a small laugh there. and the u.s. not getting a fair deal in terms of but there contribute. it seems like you want to backtrack here in some sense, or countries need to catch up on what they oh, and merkel says listen, we are ready to improve and build up our own contribution. >> the post campaign rhetoric of donald trump onorato -- on a
nato raise questions about his commitment. he rightly made the point that he was never talking about the strategic relationship, he was talking about how it is funded. ,ince then, other countries especially germany have said yes, we need to do more to step up our commitment to the organization. general mattis, the defense secretary, has made it clear that germany is the linchpin of security for europe in the united states, and there has been pretty much an ironclad commitment to the organization. it is just the finances that has preoccupied donald trump, and the germans have committed to get to that target. oliver: great conversation, thank you. in coverage of policy washington continues for next week. we will go over to cavan, who is standing by after speaking with the president. kevin, talk about the president's response to your specific western aortic way from the conference.
♪ this is bloomberg markets. i'm oliver renick. -- he isminneapolis explaining why he cast the only vote against the interest rate hike this week. we'll hear more from him on monday on bloomberg daybreak: americas, starting at 9:00 a.m. wall street time. point blank fine has taken a pay cut. reduced his conversation -- they reduced his compensation for 2017 by 27%.
porsche looking beyond digitaler to see if services can begin january 10% of annual revenue, which that $9,000 or be generated from real-time weather data that warns drivers about things like icy roads. that warns drivers about things like icy roads. and that is our business update. you have been watching a joint news conference between president trump and injured -- german president angela merkel. earlier this hour, we give you the headlines maria what happened there. really, -- kevin cirilli, our chief white house correspondent, was there as well. kevin, you asked about republican unity today to the president. what answer did he give you an what does that compare to how you are hearing? the whitee inside house, where the president did take those questions about
republican unity in terms of health care, where he says he feels that they feel they will unify their party and able to -- be able to get that policy pass. so he cannot get anything done if you cannot pass that policy, what i'm hearing on capitol hill is saying that they are no close to be that closer to being unified now. he did not say which concessions he would make on health care. tradee also talked about policies and what exactly he would do on trade. he wants to get a deal set for the united states, he says. oliver: a great question to the president, thanks. scarlet: and on this day, ireland's prime minister is speaking here at an exclusive event on bloomberg. let's take a listen right now. >> t was very important in ireland.
would you like a cup of tea, do ,ant your team weak or strong do want sugar in your tea? the hands that held these teapots are the same hands that did the roads and the skyscrapers of new york in america. this is been that discussionseries of in washington, and i hope we can make progress in the past two days, and this will work if everyone except that they should cooperate and have an agreement and understanding of how this should work, and we need to follow through diligently with the new illustration. i have the privilege of walking up fifth avenue on the green with the governor and so
many others,, so thank you for that. let me say it is always a privilege to come to bloomberg. it is a location of great energy and exuberance, and i have been to the london headquarters a few times, and now they are moving to a brand-new place there. to this visitward once again. so thank you for the worlds of welcome and for your initiative in organizing this particular event, and thank you he or bloomberg, to everybody, for making this happen. sisi patrick stated have a celebration in ireland and across the world for everybody of irish descent and affinity all over the globe. it is a day when we celebrate ireland's global reach and the contribution made by the irish for many years. and the positive influence that has -- that the wider world has
had and continues to have because of that engagement. let me give you a brief update on our economic progress. i will then tell you why we as a globalized open economy are very deeply committed to the european union membership in the international trade. our economic performance in the recent years continues to outpace most of our european peers. indicators point to continued solid economic growth, and locallyfragile challenging environment. the increase in economic withity is broadly based growth being experienced across all sectors, whether they be asked her to or domestic -- export or domestic. the strength of that recovery is most evident in the labor
market. more than 2 million people are now work, the highest level since 2008. unemployment has dropped from 15.2% to 6.6%, and 2% loan in the past 12 months, which -- alone in the past 12 months, which is a symbol of confidence and reinvestment in the irish economy. and the cost of borrowing is close to his story close, -- lows, reflecting continued economic improvements. ireland has regained in great status from many debt letting agencies, and our plan is to continue to manage prudently on behalf of the people ireland's national finances. we plan to limit the deficit next year and our debt to gdp ratio is also on a downward trajectory. foreign investment continues to
be a key contributor to ireland's economic development and growth. over 1400 foreign-owned companies have now put down their roots in our country, and export growth in recent years has also been exceptionally strong. last week, we published the new trade towards him and investment strategy called ireland is connected, in which we have set an ambition to increase our indigenous exports to 26%. primus that is ireland's are, enda kenny, speaking at a special st. patrick's day special. he will be joining us with a special interview in the studio and a bit. this is bloomberg. scarlet: you have heard from the premise or ireland, the chancellor of germany, and let's turn to the debate over monetary policy in europe. asked this analyst over a rate increase from the
european central bank. thate odds are growing they may end up normalizing rates earlier than previously expected. i think the fact is the euro is very low. that is a boost to the european economy. better, so getting from that point of view there are reasons to believe that the basis for normalizing rates faster is in place, but moreover i would argue that you know what, there is no reason. the dutch election alleviated concerns about political uncertainty. it looks like it is not going to happen at all. and if steve mnuchin is having any conversation with the germans about the euro may be being to move -- low, you have to do something about it, so that might help pressure germany to pressure the ecb to do something about it. i think all these combinations -- it is understandable why the euro is here and could even move a little bit higher, especially because people still feel like
european assets are cheaper than u.s. assets, so i can understand that especially in equities in that matter, they will see new -- see more in europe. youlet: nevertheless, when take a look at the euro in terms of volatility, many people's way -- people save complacency is in the market. you have to start hedging because there is too much complacency in the french election. is that a risk. go -- risk here? >> all i know is if you look at the israeli election in 2015, the trump vote, the so-called embarrassment factor, which i think was what worked in favor of beating this for brexit and for tron was 2-3 points -- for trump was 2-4 points in the polls. it is not going to make a huge
enough difference forward actually win, but i think the odds are lower than 50-50 for sure, but the point is again, i still think the other going much lower at the end of this year once we get tax reform. there is no question. but before that -- >> scarlet: we have some breaking news. business ceos had a meeting with angela merkel and's -- president trump at the white house. here's what they have to say. >> they are deploying hundreds of thousands of -- employing hundreds of thousands people, but they are employing millions of people. so this is long as take $2 billion for community services for apprenticeship, training, community back to the of this country come at a turn this over to my colleague, mark. i am from the co
salesforce.com, and what i introduced is the idea that we should take a moonshot for apprenticeships in the united states to go for 5 million apprenticeships. a lot of us, all the co's and co zoller the country have independent workforce development programs, and we are all doing things independently. when you add that in, if we all pulled together, we could create an amazing 5 million apprenticeship dream. we also have the ability to talk about gender equality and all the ability to bring women in the workforce and bring women the same pay as men. thank you very much. >> i'm clouse rosenfield, the ceo of shepler. an important part of our manufacturing base here in the united states. skilled workers, which is part of our family cultures. we have invested 35 years into dual locational training
according to the german principles. we are happy to continue with this in particular when it comes to the digital age and the needs of workers at the intersectional ,echanics, electronic, and i.t. and we look forward to the joint opportunity to work forward with our ux colleagues, and we think the president for the opportunity to be here today. thank you very much. you have been listening to a couple of the ceos who had spoken with president trump and counselor angela merkel at the white house -- counselor angela merkel at the -- chancellor angela merkel at the white house. there was a discussion about taking a moonshot on apprenticeship, and this is something that came up while the leaders were speaking in their news conference as well. oliver: we have been chronicled calling -- chronicling donald siding with ceos, and
angela merkel said the same thing, this is what we have been doing with apprenticeships. scarlet: and the shepler ceo speaking to the press is law after speaking with merkel and donald trump. we are about an hour away from the close of u.s. market, select take you to julie hyman now to get a sense of where stocks are trading. notice thatf her the s&p 500 got a bit of a lift as the president and chancellor merkel was speaking. julie: it is up not even two points, not even .01% does not even .0% -- not even .1%. this lifting a lick in volume however for major averages today, and that is something that characterizes it as well. or we are seeing happen in stocks is divorced from what is happening in d.c., at least for today. that although we got a
consumer confidence rating that shows an uptick in consumer confidence, that is will we have been seeing. i want to take a look at some the movers we are watching today. this is within the financial world. we are seeing goldman sachs on the move today. we got the headline that lloyd ,lankfein made less last year his annual compensation was cut by 27%, in part because of goldman's compensation committee illuminating a long-term incentive award -- it women ating -- eliminating long-term incentive for. and they appear to be suffering from a downgrade of morgan's danley -- morgan stanley, cnet risk for this companies that has been a longer term trend for some of the asset managers. those three are trading lower. we had a couple of earnings reports to talk about. adobe, cloud has been the buzz word, not just generally for the tech industry, but for the past couple of days with earnings from oracle as well.
adobe also transferring some of its business to the cloud. that company earning his beating estimates. and tiffany unexpected we doing well here. the company raising its prices to improve margins. it has opened more asia sales, even though as stores -- sales in the u.s. were somewhat lackluster. sales were down the fourth order -- quarter. and this is what is going on in the bond market. we see yields actually at a two-week low for the tenure, and your two-week low. 2.9earlier touch with that -- was at 2.9%. this movement has continued. they have not bounced back in the wake of that. some traders are now pricing in a more [indiscernible] fed for the remainder of the year. and finally, i want to look at the bergen the s&p 500 zeal
here. the s&p is in white, yields are largely and they have been tracking together. there is a bit of the virgins have seen from both,what we call it over the past couple of weeks a little bit of a sideways movement. he the 10 year make around trip and come back to where it was at the beginning of march. the s&p 500 has done the same. not able to re-attain the record highs reached on march 1. >> julie, thank you so much. oliver: for more insight, let's bring in mike, the senior market editor from the markets live blog which you can find on the bloomberg. and ethics strategist for bloomberg. thence, we have a chart on the dollar here. we want to connect the markets with what we saw with angela merkel and donald trump. a little bit as they started
talking, not really a big move. i'm curious to get your take. going toe u.s. dollar be watching some of these geopolitical events? >> we have the g-20 this weekend. trade seems to be put on the backlit. there is protectionism, currency manipulation. all kinds of things coming out of the g-20 to affect the dollar. secretary mnuchin will walk a very calm line and try not to upset his counterparts -- we may not see anything specific that may impact the dollar this weekend, but we have the fed speaking and a lot more political situations coming up. that thee the sense fed matters as much as it did before. everyone kind of agreed it was a dovish hike. but it seems content to let policy take the reins from here. >> i think the fed will matter.
what changed a bit is the market seems very comfortable with where they think the fed is going. it took a while the price in three rate hikes this year. now that they are there, the dots seem to be on the same page. the stock market can get comfortable with the pace of rate hikes. if they are comfortable, they know what it's going to be. i think janet yellen has done a very good job of sort of telegraphing in her speech in chicago, expect this in march. as long as the market knows what to expect and that the pace will continue to be gradual, i don't think it will get into way too much equity. oliver: how do use us out -- how do you suss out if it is markets to come more the idea that from the fedaths it goes sort of hand-in-hand
with the reflation trade that has affected stocks postelection? >> that's a good point. there's a little of both. the lead ofd been this huge rally we have seen since november. the curve has been cooperating right now. there still seems to be this risk on feeling if you look at emerging markets stocks. what we have been talking about he and hass how well been doing. em has been doing. it took a big dip after the election. concerns about relations with mexico and china and that sort of thing. it has gotten past that. it is a pretty good age of how willing people are to embrace risk.
and not so much worried as they are. >> i have a chart right here to illustrate what you are saying. as mike was saying, emerging market stocks got a little bit of a lift. line iss blue or teal the effective rate. the reason i bring this up is guide, if history is any a fed rate increase isn't necessarily bad news for emerging market assets. they have done pretty well. time rates were rising. the yellow line in the white line showing currencies and talks grows right with it. like that chart. i don't know which one of you brought that, but i like it. it really is a misplaced notion that rate is bad for equity. especially on the emerging
market front, move away from the dollar for a second. are the currencies going to be able to withstand the shifting tide here that could potentially be moving the u.s. dollar higher? as long as the markets get a read on it and there is consistency with what the fed is saying and a gradual approach to things, you are in a goldilocks sort of market. it is a nice comfortable place to be where you can predict what is going to happen and it gives emerging markets which do have higher interest rates, an opportunity to get into that space and get where they need to be. to adjust to the new higher norm for u.s. dollars. question coming in right now, apart from the mainstream? what are the hard numbers and data? the interesting thing talking to people is what the fed is
looking at. if we have jobs where we think our full employment. you assume the fed is going to be looking at inflation. if interest rates are a reactor towards inflation, the gradual path may not be as gradual as we if theng told because heat of to levels that go past the norm. ppi versus that. we are having somewhat of a divergence here in terms of the trend the last couple of months? the correlation between the two has been very high. the presumption is that pce is going to catch up to ppi. it puts us at or above the 2% target. if inflation is running hot, that is the target as opposed to a gradual growth path.
there is a possibility they could start to move a little closer when you get back to not read jewel but less aggressive rate hikes. >> we saw everything in the u.s. rally take off. and of course, you had the dollar moving in its own direction. since then, equity has consolidated. we saw a big moves in the bond market. you look at the 10 year, a lot of different big bond fund managers has said they are at or near an inflection point. 2.6%. the indicator of the beginning of a fair market month. >> the consensus trade really is that bonds are going to go lower and yields will go higher. positioning,t the these massive short positions on
treasuries are just staying in place. say, people coming in to cover the short. i think it's going to take a couple more weeks to really suss that out. are saying that all the conditions are there for higher bond yields. you get the shorts out of the market so they are not covering on every spike in yields. the ultimate direction could be higher. as the lead editor, you get to sift through all of the report that come in. what have you noticed in terms of themes? have people moved on to new ideas? are they still trying to wrap their heads around the era we are in?
>> i look at every friday wind a song. it is about earnings at the end of the day for the equity market. the estimates for the year have come down a little bit. trajectory,at the , gettingly came down bludgeoned after january. collapse, they're not coming down at that superfast rate that they were. if we keep earnings growing, the risk to the markets don't seem real super urgent. high valuation. there is concern about that.
can take a breath and not worry about it as much. >> even as valuations get higher, you have a lot of geopolitical stuff out there. we had danny on the show yesterday talking about volatility and managing volatility. ,hat people were talking about i want to get your take on that real quick. the dollar as being a gauge for risk appetite. cracks your nailing on a -- >> you are nailing it on the head more than you may be aware of. market is the direction of the dollar. continues to go down, they have been long dollars and short rate. considerably drops , bring back a winning trade which is been the short rate
trade and that can keep a lid on interest rates. if the dollar goes down, and quite the opposite. scarlet: senior markets editor. and our strategist. >> let's get a check on the headlines with bloomberg first word news. mark: chancellor merkel's high-profile visit comes at a crucial time for u.s. german relations. the chancellor and the president held a joint news conference after their meeting. president trump was asked about trade. trump: i am a free trader but i am also a fair trader. in their free trade has led to a lot of that things happening. you look at the deficits we have and you look at all of the
accumulation of debt. we are a very powerful company -- country. we are a very strong country. ofk: germany is concerned mr. trump's criticisms of nato. and other u.s. allies to pay their fair share. a criticalrs signing vote on the plan to replace the affordable care law next thursday. the proposal has been criticized by conservatives that say it is too similar to obamacare and offers very little cuts to government subsidies. after meeting with the republican study committee, conservatives who previously opposed the proposal now claims people mostly civilians were killed in a mosque after an airstrike at an al qaeda gathering in syria. they were canceled across parts of northern syria while the
search continues for potential survivors. the u.s. denies targeting any mosque. inre also known to operate the opposition controlled region. an agreementhed with saudi arabia for 85,000 pilgrims to attend after the 2016 boycott of the annual degrom edge. iran withdrew from last year after a stampede crushed pilgrims and killed more than 2400 people. iran had the highest death toll in the disaster with 464 people killed. relationsiplomatic with tehran last year after demonstrators stormed saudi missions in iran. william and his wife kate were in paris friday to meet with president francois lond -- hollande and survivors of the extra missed attack. it's the first trip to the
french capital since his mother diana died there. over britain's departure from the european union. global news 24 hours a day powered by more than 2600 and analyst in over 120 countries. i'm mark crumpton. this is bloomberg. my sitdown interview with the mayor of cape town, south africa, suffering its first drought in 100 years. how this water crisis is trading opportunities in investment and infrastructure. our coverage of policy in washington continues on bloomberg markets next week. on monday, fbi director james comey goes before the house intelligence committee as part of a probe into russia's interference with the 2016 election. willonfirmation hearings begin in a senate judiciary committee. this is bloomberg. ♪
oliver: this is bloomberg markets. scarlet: the mayor of cape town joined the conference this week. her city has taken a massive water shortage so i shut -- sat down with the mayor to talk about discussing the crisis. why we have become self-sufficient. is to launche now climate change bonds that are on the stock exchange. got a clear project.
and so the excuse for not having money and waiting for funding no longer becomes an issue. of the big issues you faced was a water shortage. >> we have 120 days of usable water left. and it really calls for a concerted effort by everyone to make sure that we mitigate not running out of water. that there is always this opportunity because we could go on a massive drive of education to tell people that water will not only be scarce now, but going into the future. people have to change the way we do those things. >> you detail the different solutions you have come up with. funding remains a big issue.
will the money come from to tap into these water projects? we now need to complement bonds.e climate change we also have the green economist because this is an opportunity to build more solar panels. i can tell any company whose interest is in climate change, we have a very good credit rating. cracks i want to switch gears and talk about the politics in south africa. >> we have packaged cape town to be the model.
we're transferring the good practice from the city of kate down. they come together in a monthly basis and we are very confident become can afford to like the city of cape town. >> the mayor made inflammatory remarks about undocumented immigrants being criminals. >> i have spoken to him and the key difference is that he is speaking about it illegal people in our country, not immigrants in general. saying that wey are all equal before the law and if you are illegal and our , whether you do it illegal things whether you are a local person or an immigrant, it
is wrong. and i think that is the message he was trying to send out but specifically,more they have experience with high crime rate and drug abuse. there are certainly south africans that can -- [indiscernible] was my: that conversation with the mayor of cape town, south africa earlier this week. >> we are joined for an exclusive interview. this is bloomberg. ♪
markets. oliver: time for bloomberg business flash, a look at the biggest stories in the news right now. lloyd blank find taking a pay cut to reduce his compensation for 2016 by 27% to $22 million. they eliminated a long-term incentive award. 4 million cash bonus and $16 million of shares tied to the company's performance. of its boardthird members will be out in may when the terms expire according to the ap. the long-time members were on the board when to pull he more than a decade ago. the burrito chain has been under pressure from investor to speed up its recovery. the hedge fund is one of the largest shareholders bringing more than a 10% stake in the fast casual chain. now the premier league showcases sponsors.
players -- the free up space that usually features a logo and they created a new revenue stream for the team's owners. is your bloomberg business flash update. i will talk now about how politics are working the way of markets. let's check out this chart on the bloomberg. this is 6885. the trades that went a bit arrive for investors that were betting on hedging themselves. it shows the european volatility subtracting the april stocks. it basically hedging out. you can see a big move up. and april matters because the first round of presidential elections take place. they gauge the political
at a crucial time for u.s. german relations. the chancellor and the president held a joint news conference after their meeting. merkel speaking through an interpreter that said globalization needs to be fair. >> i believe that globalization ought to be shape in an open-minded way but also in a very fair way. elementvery important of our economic progress of peace. it has been for many decades. concerned by is mr. trump's criticism of nature -- nato. for republican governor say they oppose the current plan to replace the affordable care law. mcconnell, to mitch and now speaker paul ryan, the governors of ohio, nevada, michigan, and arkansas argue the legislature does not ensure adequate coverage and shifts significant