tv Bloomberg Markets The Trump Economy Bloomberg May 26, 2017 1:00pm-2:01pm EDT
distance from key allies on full display on trade, immigration, and climate change. as president trump's first officials overseas trip comes to a close, we have the council on foreign relations. jared kushner is now the focus of an fbi investigation into russia's role in the 2016 election. i will discuss that another major stories from the week fr m with megan murphy and bloomberg executive editor craig gordon. ♪ let's start in italy at the g7 summit. world leaders are scheduled to have dinner shortly with the italian president after a performance by the philharmonic. that caps off a day leaders. joining us now is kevin cirilli
and matt miller based in berlin. i know terrorism was a big because of the manchester attack. do we see a shift in focus at the g7 summit? matt: we did see it a shift in focus to terrorism. it was definitely at the four this morning. it looks at the summit was not going to a compost much at all. seemed to change throughout the day at least as far as the relationships. european leaders were more impressed with donald trump than i thought they would be. on amade some headway couple of topics that we thought would not get touched. migration being one of them. italy has the presidency of the g7 this year and they picked sicily because it's smack dab in
the middle here of the mediterranean and the italian navy often pulls refugees out of these waters here behind me. it's a very important topic to them and actually have made a are preparinghey our crafting a statement for the communique on migration that the u.s. is reportedly on board with. on the other hand, you have gender the quality that i don't think -- generate quality that i'll think anyone was expected -- gender equality that i don't think anyone was expecting in the communique. david: matt miller describing what the italians hope to get out of the summit. fowhat did the white house say about its objectives for the summit? kevin: counterterrorism. to matt's point earlier today, i sat in on a briefing at the g7 with the european union president, donald tusk. what he said isthat they were trying to t western values,
not just western interest come as a part of one of the outcomes for everyone. there is no question that the response the president donald trump has been tepid at best and skeptical here in europe as it was in saudi arabia in the middle east. underway as a background briefing happening with two senior trump administration officials come including gary cohn and general h.r. mcmaster. briefing reporters pushing back on criticisms regarding russian sections. the prominent headline being that if anything, they feel they will get tougher on russia and not we can russian sections. they're not going to have any type of outcome right now on the paris accord. i know that there's been a lot of interest in that as well. david: when asked about something that gary cohn commented about earlier. he said the germans are bad, very bad and gary had to clarify
what he was talking about their in specifics. i will let you get me up to speed on the latest on that story. map come i'm get your perspective on what that means. kevin, let me set with the. you. kevin: we are anticipating angela merkel to make comments later today. this essentially was one of the unscripted moments of this g7. the german press report regarding the comment was quickly pushed back by the white house, in particular gary cohn, who pulled aside a pool reporter. for those not familiar with the media, it is a media wrangling if you look a thi will. mr. cohen told this reporter that this was about trade and not about anything else. it is an example of how the personalities influence the policies and the politics of the president's first trip. you up member that the chief of staff reince priebus and steve
bannon are not here right now. they left and departed from the trip at saudi arabia. gary cohn has been with the present every step of the way. i would pay careful attention to that as the present returns the united states. david: how has this running out throughout germany and what the german leadership is saying about the comments at president trump made? matt: it was fairly explosive this morning in german media. reporter originally coming out in a very highly respected left-leaning publication in germany. it was then picked up by everybody on the left and the right. i think it's interesting that it was not just gary cohn who innocence came to president trump's defense, but also john claude yunker, the president of the european commission. he wanted everyone to not take this one quote out of context and stressed that it really was
about german trade and on about the german people. hisld trump stressed that father was born in germany and does not have anything against the german people personally. he has mentioned the trade issue before and mentioned it when it comes to automobiles. industry experts find it a little bit troubling because a these germanment carmakers employ a lot of americans. u.s. and more in the exports even more from u.s.. any auto that you pick up from a four to a chevy will have pieces from all over the world. it is more complicated lives saying german cars are sold to often in the u.s.. david: we have focusing too much on the body one which at the summits. theresa may speaking right now and she is characterizing her interactions with president trump today as very warm. chancellor angela merkel spoke and said she had an honest and lively talk with the president of the u.s..
what have you observed with regards to bobby one which here in sicily -- body language here in sicily? matt: it seems very warm and friendly to me. allegedt see the shoving of the montenegrin minister and i do not see the macron-trump arm wrestling match. assad donald trump -- i saw donald trump walk up and put his hands on angela merkel shoulders and smiling. onanuel macron put his hands donald's back. they were just a collating and telling a story. i saw theresa may walk up and laughing at the story. shinzo abe also looked like he was having a good time. just looking like the body language, it seemed to me like they were getting along. obviously they go off to an incredibly awkward start. david: that brings up the japanese prime minister. there was a bilateral meeting between the president of united states and the discussed the
north korea. what came out? says: prime minister abe they wish they could of gone golfing, but clearly they were having that one reception. i think my broadly it is worth noting that the feel on the ground here is very different than it was in the middle east. wherever we went there were signs lighting the streets welcoming president trump. that is not the case here in europe. there is a deep sense of skepticism. to matt's point, that is why a lot of these more awkward moments have cut eye on social media. david: for me ask you quickly here. i was talking with ambassador nicholas burns about what the president said yesterday tomato. yo-- to nato. you listen to the rhetoric from president trump. you find that to be absent as well or is there different tone to the way he talked about perhaps the relationship he has
to the six other leaders? matt, sorry. matt: i'm sorry. i thought you were asking kevin. brussels actually in with the president and probably has a much closer take on his commitment to nato. what i observed i should say out of berlin is because i was there in the german capital and he was in brussels is that there has been the struggle back and forth for a long time. i spoke with the german minister of defense and she told me a few months ago that the germans are spending more on defense. they cannot spend any more to a certain point where there is no more stuff to buy. i noticed that angela merkel said that they could probably make the 2% of gdp, but it would take until 2024. the europeans would prefer to count all the things they spent on defense, protection, and
domestic police forces as part of the 2% figure. david: that is kevin cirilli and matt miller both joining me from sicily. let's get a check on where the market stand. julie hyman is he with the latest. julie: on the friday before the holiday weekend, we are seeing decidedly muted trading, one of the tightest trading ranges of the year if not the tightest. stocks have bounced slightly between gains and losses. any games will b mean another record close for the indices. the continuing trend upward for stocks means the continuing trend downward for volatility. check out g #btv 1807. this comes from kevin kelly on her equity analysis team. the s&p 500 on the top end and the vix on the bottom, once again flirting with the 10 level if not below it in today's session. we are watching some of the online travel companies. that is awake of a call out for
matthew brooks. he downgraded trip advisor from underperform to neutral. highys the valuation looks given that he says that margins peaked in 2009. expedia down 1%, but priceline moves higher. it is up just a 10th of a percent today. i want to get a quick check on commodities and the dollar as well. capping off this week that had the opec meeting, we are seeing crude oil bounce at the moment. we had the oil rig count out a few months ago. oil rigs here the u.s. rising just two, but the 19th straight increase in rates. the dollar is little changed. all three of them are higher the same time. david: julie hyman with that market update. prime minister theresa may taking some questions and speaking at the g7 summit in sicily right now. she is talking about intelligence sharing.
david: this is "bloomberg markets." i'm david gura. let's check on the first word news. emma chandra has more. emma: g7 leaders have agreed to a statement on fighting glob terrorism. they agree to work together on multiple fronts to battl extremism. the statement also included a show support for the u.k. following the manchester bombing. prime minister theresa may expressed her appreciation for that. all, everybody
sitting around this table for the support that you have shown to the united kingdom in the face of this absolutely horrific attack that took place. i think it's important that as leaders we have shown our fees determination to ensure that we use every tool available to us to fight against terrorism and protect our people. emma: may said the fight against terrorism has moved from the battlefield to the internet and the statement calls for cracking down on extremist activity online. president trump son-in-law is now the focus in that investigation into russian meddling in the election. according to "the washington post," investors are looking to meetings that jared kushner had with the russian ambassador and a banker from moscow. derek fisher is a senior white house adviser. one of his lawyer says he will show what he knows about the meeting. devastating mudslides in sri
lanka killed people. thousands have been displaced. authorities have asked for international help with rescue and relief operations. global news 20 for hours a day powered by more than 2600 journalists and analysts in more than 120 countries, i am amateur o emma chandra. this is bloomberg. david: ian bremmer was a guest on "bloomberg surveillance" earlier and later in the laid in on the relationship that donald trump has with his european counterparts. thehe germans are aware of fact that more leadership is needed, but they're also aware of how challenging that position is given not only her own elections but given the overwhelming difficulty of main european concerts in the negotiation of brexit.
germans are doing more in africa and the middle east, but this is incremental from a very low base. a goo the good news is that angela merkel's reelection is looking more like a layup if not a slamdunk. you do not have the same populist challenges that you have in other countries. a solid over 80% of the german population believes the economy is doing well. martin schulz running against angela merkel has been focused primarily on the economy not on migration, security issues, terrorism, others that potentially merkel is much weaker. you have seen his support of apparatus of the course of the past week. and a solid win for merkel is going to make it much easier in europe. from a global perspective, we are very far from that. >> how much to be understand whether she gets along with president trump or not? you mentioned german cars were bad and the market share, he has
gone after germany for the surplus. issue the right person to bridge this communication between the europe and u.s.? >> she certainly acts with respect towards leaders. she is first and foremost an institutionalist and will treat the institution of the presidency with the deference and the support that has been deserved over several generations now. there's no question that her relationship with trump and her administration's relationship with trump is very badly damaged. know merkelot personally, i certainly know many of her advisers. they will all tell you that they think he is very far from capable actually lead his country or that relationship. >> you mentioned over several generations of these images of sicily that we are seeing, maybe a younger generation those george patton, but a lot of
american blood was shed moving up the spine of italy generations ago. how we now lost that? has president trump so screwed this up that we are forgetting the collective memory of that sacrifice? >> the americans have forgotten the collective memory. most americans are not thinking about the cold war and the soviet union. >> why not? >> most germans are not now thinking about the wall coming down. younger populations from both countries are saying, hey, you have neglected me. and my interested in sending troops abroad? and my interested in global free trade deals? >> what about the kids and with lamia? with a lady? -- in lithuania? >> they feel like they are the teeth and jaws of russian populationand government that
will cause a lot of security problems for the that is why they are paying more for nato the vast majority of the allies are. if you asked in the if nato is going to be driven by estonia or even need toon't y answer that question. david: that was ian bremmer on "bloomberg surveillance." could theresa may lose ground in the election race two weeks away? the latest next. this is bloomberg. ♪
colleague mark barton about the significance of the shift we have seen the polls. >> you could argue that theresa may has been saying that one of the risks to conservatives is that voters would be complacent and voters would not go to vote. you could argue that this is what the tory voters need to go out and make sure they bring her home. it is true that the polls were wrong in 2015 and also with the brexit referendum. at that time, they were sort of wrong consistently. they bounced around the same levels. we do not have a massive shift. even if some of the underlying data in these polls is wrong and the samples are not ideal, that -- we should take notice of that shift. >> why do we believe the polls have narrowed so much? this is the first major poll after the terrorist incident in
manchester on monday. why and how can the polls have narrowed so much? >> the first big shift in the polls with actually last week and could that was the first sort of surprise and that was just after the elderly care plan , which really hit some very traditional tory voters. it's very hard to say how the attack affects things. what the pollsters who conducted the polls today said is that the shift appeared to be due more to thinglderly care compared to the attack. was is a better prime minister and who is the better sort of leader in times of crisis? theresa may still comes out weigh on top. >> and it comes the day after jeremy corbyn said the war on terror is not working. theresa may and donald trump as we speak agreeing to seek a
u.s.-u.k. trade deal post-brexit. they are in sicily. theresa may comes back a day early today. to what extent has the relationship been damaged by these leaks, which have been a big part of the news flow in recent days? >> it's hard to tell. there's a story out today by tim ross saying the special relationship is being strained. in fact, it predates these leaks. may did talk to trump yesterday about it and made very clear that people weren't happy. the manchester police stop sharing information with u.s.. it lasted less than 24 hours, but that's quite significant. rex tillerson was in london today and they said -- he repeated the line that they will investigate. perhaps the fact that he is here today suggests that tried to punch up relations. david: that is emma ross thomas with my colleague, mark barton,
earlier today on "bloomberg markets." looking at sterling at 12801. not a whole lot of trading as we approach the three-day weekend in the u.s.. the s&p 500 right now pretty much flat. the dow industrial average unchanged as was the nasdaq. not a lot of movement on this friday afternoon. the leaders at the g7 at a concert and outdoor venue in sicily. listen to the philharmonic as we go to break. we will be back in just a moment with more "bloomberg markets." ♪
news. >> a british trained company says a station will stay closed. victoria station suffered structural damage that needs to be properly assessed and repairs. a suicide vomit killed 22 people and injured scores of others. is living the market guess about it strategy. the cuts will stand place through next march. bloomberg spoke with russia's energy minister. the th this agreement of expanded its mandate. it is taking a close look at the market and what is happening there. if it is necessary that --ustment actions are needed we will adjust behavior to adjust actions.
>> the market was not impressed with the move after the decision was announced. oil futures fell below $50 a barrel that are rising again today. --n boehner said the in officetrumps time has been a complete disaster. for his approach abroad and aggressiveness in fighting islamic state. he had been friends with trump for 15 years but has a hard time envisioning him as president. he also said he should not be able to tweet overnight. in beirut and lebanon festivities are underway. they fast from dusk to dawn each day and it ends on june 24. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries.
this is bloomberg. david: continuing with west today's top stories, the g-7 meeting underway. covering a wide range of hot button topics. let me start with you. going into the summit, there was a lot of speculation that intelligence sharing would be a big issue in light of what happened in the oval office, the president sharing sensitive and bi information. life as taken another the tr iunfolded. where do things stand after these nine days? >> trump when he was in his -- in israel mentioned at the end of a press meeting that i never said anything about israel providing some intelligence and may have provided to the russians. there is a lot of questions leaks coming out of the u.s. and whether other
nations can comfortably share all of their intelligence with the u.s. at this point. when trump left there was a firestorm about the firing of jim comey and the revelations that came from that. the white house was glad to get on a plane out of here at the time but they are coming back into that storm and it has not come down a lot with the news that jared kushner is someone whose activities are of interest to the fbi probe. >> what happens next when the trip, he wraps up the flies back to washington this weekend. what is going to greet him upon his return? >> the best news from the white house perspective is congress will not be here. they are off so he will not have to deal with any big public hearings about the russia probe, the firing of comey. that is off the table. that gives the white house a chance to reset the agenda. those stories have not gone
away. jared kushner, the son-in-law is someone the fbi is looking at closely. and brings all this debate controversy about the russia probe and their role in the election into the heart of the white house. >> we heard from a few people out of politics, john boehner and hillary clinton, they were talking today about the way the president has approached this. theillary clinton gave commencement speech. availed reference, she was referr theintoast hishhad given to that speech thinking about richard nixon and the difference that she and her ,lassmates held toward him making reference to a president who had been impeached. she has amped up her public
rhetoric not only the reasons she thought she lost the election but on what she views us -- as this attack on american values, women, minorities. she signaled -- and singled out the impact if they bill. >> what did the former speaker have to say? >> complete disaster were his words. saying this has been something that we have all this bouncing around and the inability to get a foot on the agenda. jarednstant turmoil with kushner. this has not been an administration that puts forth the accomplishments it would need to counter a soft push back in the media on minor scandals little one -- let alone one that
is confronted nearly daily with major scandals. david: great to see you. let me ask you to draw a contest -- contrast between the summit that went on. did he have an easier time with these leaders in sicily than he did in brussels? he had an easier time because we did not see him as much. shoved the guy from montenegro out of the way and had an odd handshake with macron today. working lunches and working dinners, seven world leaders, he mostly stayed out of onuble as they beat him up climate and trade. >> the focus was terrorism. in light of what happened in manchester. how did that play out at the
summit? he had limited access to with the leaders were saying. what did they say about fighting terrorism going forward? coast -- houston were eager to have a summit different from the one in brussels. they agreed on the need to fight terrorism. at the end of the day they were able to put out pretty strong statement. a lot of it was fairly obvious that terrorism is bad. the interesting thing was theresa may pushing hard to get social media companies, facebook and such to do more to crack down on the hate speech that proliferates that there is little in their to disagree with. there was one moment of unity in what has been a few days of disunity. >> going into the nato summit the white house is keen to get nato allies to defense spending.
is he walking away from that summit with any results or are these countries making new commitments to pay up more? >> i would be hard-pressed to -- a big victory out of anything related to nato spending. there was a commitment to get to the 2% threshold. the trump administration wanted to see that greatly accelerated, only five nations make that threshold. we are not seeing that is going to happen much faster than it was plan to. -- planned to. >> we have a new congressional seat. is someone who was accused of body slamming a reporter. what is the import of that race in montana that took place yesterday? >> the one thing we are the cat is this may be the one week that
donald not lose the week in terms of politicians. has been interesting. this is a week in which we have untilstandoff over sharing and we had a recent terror attack, a massive [inaudible] talking abouteek a reported being slammed in montana. the levelsign of how of political discourse has sunk. things have got to change. trump will have to come back and pull it back if he will put any of this behind him. i knows what it will be next week. david: thank you. coming up, we hear from the president on the council on foreign relations. presidentn what is
david: this is bloomberg markets. fiduciary role. according to reporting the sec is said to be considering a review of the responsibility that brokers have to their clients. jesse westbrook joins us from washington. this started off with the wall street journal opinion piece by the new labor secretary and he encouraged the sec to take a look at and do more with fiduciary duty, something that did not happen under the past chairmanship. what is the status of the role at this point? news and midway
through he announced the role that wall street hates, it will take us back to schedule next month. they thought the rule of law, the legal risk, they had to move it forward but he did outline odds, inrule is not at line with president donald trump stay regulatory agenda and he wants the sec who is this ,raditional frontline regulator broker, money managers to take a look at this and hopefully come that theomething industry might be happier with. david: is this a sign that it is passed over to the sec or is this another example of a dodd-frank role that has ownership by a number of regulators? >> i think the secretary wants nothing to do with this. it came on the labor department's terrain under obama because the sec did not want to
do anything about it and it was a top priority. they said bias and conflicted advices costing sabres billions and they got tired of the sec not doing anything about it so they said labor department, you pass the role. david: what do we know that the direction they will take? do we have a good sense of how he is going to lead that differently than mary jo white? >> he has been quiet this far. we have not seen public or private pronouncements. he has a different background from mary jo white. he knows how to circumvent the red tape to get things done for his clients. when he was in the private sector. presumably that kind of knowledge will help him remove red tape on the government side that makes it difficult for the
industry to do some of the things he wants to do. withank you for joining us that screw. earlier richard haass, the president off the council of foreign relations gave his assessment on trump strip. front half of the trip, not bad. the only thing i would disagree with is the president gave the arab governments a pass on the flaws in their society which are generating recruits for groups like isis and a strike -- strident anti-iranian rhetoric could put us in positions we may not be comfortable with. all things be -- being equal. not bad. netanyahu was happy you is not barack obama. it essentially went off. the second half not so good.
it would be hard to script a worse beginning. the president was not walking into a difficult since -- situation. low hanging fruit. if he had reassured and said we have had some differences, i have come to respect to an we have a lot of common challenges, i am there for you and with you, article five, the idea of an attack on one is an attack on all. that is all he had to say. coverage would have been different and that would be the right thing to say, not just the politically popular and he did not do it. he persisted in this idea of .ublicly lecturing them he shows up and lectures them. these have been our principal partners. doubtsaffirmed all the about donald trump's america. >> help me understand that,
perception is important. he is finding it easier to get on with middle eastern leaders and harder to get on with european leaders, why? >> he is not -- with a authoritarians. put in, the leadership of ping in china, there is a pattern. the democratic elected leaders are much more difficult for him to do with, they have politics in ways he others do not. they have real restraints. there is public opinion in those countries is very anti-american, they disagree on everything from climate to how to deal with russia. they do not like a lot of what he is doing. they see him and scratch their heads and go this is not the united states i thought i knew. in theft barack obama middle east, they were so comfortable. look at the difference in body language.
it is night and day. approachs the business , can bring his son-in-law to the conversation, they want to make deals, if they say yes it mean something. when he meets the european leaders it will go to their electorate, is that the key difference? >> this is different biases. the europeans care about things which thisrights administration has written off. in the middle east it is different. there is differences in style and the political culture. there is a policy differences between this president and this leadership. you do know these very well. have you ever seen a g7 that has been this- that has undefined this late in the process? by now we know what they are going to say. i for one do not know.
fairlyill have to be anodyne. there is no consensus on trade. consensus on climate. the gk -- the g7 was created decades ago to forge relationships and collective action, not just across the atlantic but with japan. that was a big renovation. there has to be some kind of political and intellectual basis for consensus and there is not one. you have very low common denominator sorts of agreements. adding to it is the lack of staff. you do not have anyone there who spent a lot of time at g7's. the white house has these very concentric circles. i do not think the secretary of state is in italy, he is in london. leadingshner is the figure and has come back home. it is tough enough to make foreign policy when it is
more highlights. a criticism.t of we approach a trip like this, you should meet the itinerary. i got exhausted looking at all that you would be doing. how do you fold social media into that, how does that keep people abreast of what you're doing in theld? it is like keeping a notebook. i have been lucky enough in terms of all the logistics. i spent a lot of time on buses on the campaign trail. we spent time traveling from different hotel sites. the first thing i noticed when i got on the ground, i had never been there before is all the signs from the saudi's and israelis welcoming president trump and it was everywhere. you could not go anywhere without saying president trump's face and it was the first thing you notice. i think a lot of the advantage of being on the ground is to get
that feel. that was a stark contrast in what we experienced in europe where there was not any of that. david: we have heard from some of the graybeards during the told us with a sob versus their expectations. you met with folks from the white house before hand and heard what they wanted to accomplish. how close did they come to meeting with they wanted to do? >> the take away for me on this not with the people who are known names. the local journalists and in riyadh. the big takeaway is lockheed martin's ceo marilyn houston which is one of the world's most influential executives, she is a female my she hoped -- helped negotiate and ink part of the investment plan with the saudi's
in a country where men are not able to drive cars. she presented to the saudi's, i think that is the example that that country needs. i will never forget speaking with one twentysomething female reporter in saudi arabia who told me tolerance is not happening fast enough. any type of person i came i contact with in riyadh connected to prominent saudi-based figure outwe can which one i am talking about, try to make the case that perhaps civil rights is advancing faster. will not forget speaking to a 20 something a man over there who said that you cannot spin your way out of these types of issues. it was interesting beyond seeing the business investments coming but also the example that u.s. executives are setting by being alonghere to help push
progress in a country like that which is a beautiful culture filled with nice people but still has a waste to go on a host of different issues. david: well, onward. joining me at the conclusion of president trump's official trip, valuing his reporting across our platforms and social media as well. tuesday, we speak with the president and ceo of the dallas fed, robert kaplan. you can look for that interview at 8:00. our interviews with the function tv . this is bloomberg. ♪
julia: and i am julia chatterley. welcome to bloomberg markets. ♪ fromet: we are live bloomberg world headquarters in new york of the next hour. let's get straight to the top stories we are covering from around the world. president trump rubbing else with -- elbows with global --ders at the g7 senate summit while back home, his son-in-law jared kushner is apparently being investigated by the f ei. founder elon musk is tweeting that he was an "idiot" for making his model x too complicated. and mark zuckerberg explains why this generation is a tough -- has a tough road ahead and needs to fight isolationism.