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tv   Bloomberg Markets The Trump Economy  Bloomberg  August 7, 2017 1:00pm-2:00pm EDT

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watching at this hour. president trump continues to take credit for a strong economy and job numbers. but can he rightfully lend his name to the rally? ner joins me in a moment. meanwhile, white house dysfunction is taking a turn as senator chuck grassley ramps up the russia probe. a new round of sanctions on north korea and a warning to the projectinges for what it calls a hostile policy. president trump has been patting himself on the back for creating a robust economy. he tweeted -- the tweet continuing.
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has been digging into the data. up the obama administration press efforts to revive the auto industry and he is my guest for the next half hour. let's start with our own stock market expansion, comparing it bush president trump to 41. bush, 20.1. trump, 9.1. steve: first of all, he is in the middle of the pack. there are different factors coming to bear. i do think he gets some credit for having created more of a sense of optimism among the business immunity by promising tax cuts and deregulation. that doesn't obviously help the
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average american or the trump of voter, but from an investor's point of view, it's positive. but the world is a stronger place economically, not necessarily because of him, and the stock market is reflecting that. david: you mentioned the degree to which he provides optimism to the business community. many people sat down with him. bloomberg news reporting last haven'tt those groups met as frequently as they were intended to me. very little progress has been made. how much of that was a half measure? steve: calling him the listener in chief is not his modus operandi. he did have a bunch of meetings, but i am not sure how much he listened. those kind of meetings and panels have been around for a long time. they always start strong. they always stayed out. you can't run policy by having a bunch of people drop in to give
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you their thoughts. at the end of the day, the white house will make things happen or not. ifiously, the big problem is you can't get anything done. david: how do you react as an investor? what are you doing at this point? steve: with great terror and fear that by any measure the markets are frothy. alan greenspan the other day was talking about the credit markets. they don't get as much attention, but they are equally if not more frothy than the equity markets, and that's scary. -- as warren buffett likes to say, market timing is for fools. we don't really try to do it. we just try to be in a safe place. david: let me ask you about the jobs report. we got the numbers friday. they were good. has anything changed markedly to you? the economy is basically
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doing the same thing it has been doing for the last several years. growing at 2%, plus or minus. we are roughly a month zone, adding 200,000 jobs a month. under trump, the job growth has been slightly slower under bash than it was under obama, looking at the average, -- slightly slower than it was under obama, looking at the average. but the economy has essentially been doing what it's been doing for several years. david: looking at participation among those who have a high school degree and those who have associatese or an degree. in blue are those who have a high school degree. you see an uptick in those as far as participation. thosee a downtick for with a college degree. what you make of that? steve: i'm not sure what to make
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of that. in general, there are a lot of jobs. job offers and hires have been widening. it's veryw, geographically dispersed. there are places doing well and places doing less well. thisve a problem in country with mobility. people either want to move and can't move because they can't sell their house. in a sane world, those are problems the government would be trying to help solve. in this world, we are in gridlock. david: we have hard data and soft data. you look at soft data, like consumer confidence. what does that tell you about the health of the economy? animalsoft data, or spirits, as you call it, does matter. feeling people confident, so on, so forth. at the end of the day, hard data
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is what people can put in their wallets or spend at the grocery store. hyman my colleague julie is standing by with a look at the markets. julie: we are seeing a little bit of a bump up in the markets, extending some of the very early tepid gains. now they are just somewhat tepid gains for the dow and s&p. the dow is at another record as the nasdaq extends its gain, helped by apple today, which has been on the rise. also noting, as the dow has set all these records, the global equity market is also doing quite well. it's up 12% year to date and trading at a record today as well. if you look at the u.s. market versus the global market, market share is declining. this turco's back to 2010.
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the u.s. market cap -- this chart goes back to 2010. the u.s. market, particularly this year, has been declining. one is the declining value of the u.s. market. also, we have seen u.s. stocks global markets have gained even more. on the u.s. dollar topic, if you look at the dollar and the trend we have seen, we have been down this year, a percent. we have had -- 8%. we have had a little bit of a rebound. now to a story we have been watching in the last 15 minutes or so. remember, we had a report from bloomberg news that united athnologies was looking rockwell and interested in making an acquisition. now, dow jones is reporting that united tech has made an offer of less ban $140 a share for
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rockwell. foress than $140 a share rockwell. the two sides are still in talks, according to that report. a further leg up that rockwell shares took. taking a leg downward. david: we will talk more about that deal with oliver renick later in the program. coming up, the chairman of the senate judiciary committee turning up the heat on the investigation into possible collusion between russia and donald trump's campaign. this is bloomberg. ♪
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david: this is bloomberg markets . i'm david gura. let's get a check on first word news. mark: north korea says the united states will pay a after the united nations security council imposed .ore sanctions china back to the sanctions in an attempt to start negotiations. the company that manufactures president trump's brand has moved to protect the name in macau. there are questions about the constitutionality of expanding trump trademarks overseas. largests the world's gambling market. the u.s. constitution prohibits a predator than -- a president from accepting contributions from foreign markets.
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tomorrow, a no-confidence vote on jacob zuma, who faces mounting opposition from his own party. only a handful of members they his leadershipne and vote for his ouster. some eggs contaminated with an insecticide might have entered eu territories. notified the alert and shared the information so that check,dy knows to areuse all of these eggs traceable. mark: the european commission also said the announcement does not mean the eggs have entered
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those countries. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david: the chairman of the senate judiciary committee, chuck grassley, has been ramping up the investigation into possible collusion between russia and trump's presidential campaign. this as trump is on vacation at one of his golf resorts in new jersey. he tweeted -- rattnerth us, steve and the editor and chief of bloomberg businessweek. i sense some defensiveness. just want to flag, new polling from gallup looking at the , 38idents approval rating
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percent. he, as ever, is cognitive of his perception. look, it's ridiculous, right? he's on vacation. there have been all these photos of him in golf carts and at weddings. why doesn't he just tell the truth? on vacation. i am doing some work, but i am getting my two weeks off like everybody else. , we sawegan murphy president trump in west virginia a couple of times over the last couple of weeks, back on stage in front of a big crowd, clearly enjoying talking to his constituents. talk about the timing of this -- vacation. it's clear he was making inroads to the rust belt and trying to make his case to the american people again. anyone ison't think discouraging him from taking a vacation. it's more the pattern of
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behavior that continues, even with john kelly, the new chief of staff. veryw a rage tweets we are accustomed to. that's a pattern people find disruptive. he can say it's a working vacation. senior advisors are with him. derrida in a funk a trump are with him. ivanka trump are with him. but heading into the fall, there are issues like the budget, tax reform. are we going to see this kind of off the cuff, loose cannon behavior? frankly, i think everyone wants a break. will there be a new white house, or is he going to continue the pattern of treating this like a campaign? going to west virginia and ohio. the numbers are going down, but they are also going down among the base. the president has to start looking at that closely.
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kelly, as megan mentioned, is now the chief of staff. we saw a re-prioritization of what staffers are supposed to prioritize. country first, president trump second. that is a radical change. change within the white house hierarchy. the we seen a change in president? has john kelly had an influence on him? it's good hek chose john kelly instead of some other loyalist who wasn't really capable. to saygotten everybody yes, i report to the chief of staff, which is the way it is supposed to work. on the other hand, he is still out there tweeting, a little more restrained, but still tweeting. it's a work in progress. we will have to see when the immovable object meets the air force, which one -- meets the
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irresistible force, which one gives. a piece in thes times over the weekend about republicans rallying around mike pence and some pushing him to 2020. the vice president issued a statement on this, which is something i haven't seen in a long while. he said -- this is offensive to my family and my -- think ofat do you this? megan: the vice president's team was immediately ready when that article hit yesterday. but he has been meeting with donors, going to iowa and forming his own super pac. let's be honest. there is blood in the water and has been since day one.
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let's remember, it is not just mike pence people are talking about. there are other people they think might have a credible shot . i am sure the vice president thought, what am i going to say to my boss when he sees this article? but this is a white house that is incapable so far. intoany people pulling many directions around what truly important. what is baffling is, with the economic trajectory we are seeing -- forget about the stock market -- what we are seeing and what should play into his message, higher wages for low income workers in particular, a higher workforce participation among people with high school degrees, his core supporters. they are not focused on telling that story and pushing the message on the economy. it's a struggle for the white house to get any message together. david: appreciate it. tner will stay with us.
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still ahead, we hear from the french finance minister. why he is promising a big change in the tax system across the european union. this is bloomberg. ♪
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david: this is bloomberg markets: the trump economy. i am david gura. let's turn to taxes. the french finance minister says taxes will be lowered and eventually harmonized across europe. strategylways the same based on the same rules for everybody. when you are doing business in france or europe, you have to pay taxes. the benefit of doing business in france or europe without paying taxes that other companies, french or european minis are paying in europe --
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companies are paying in europe and in france, the same holds for all companies and all states. toyou want to lower the tax 25% everywhere in the eurozone? >> we will lower the corporate by 2022.33% to 25% to have ap, we want tax harmonization among the members of the eurozone. you have 19 members of the eurozone, one currency, the levels of taxes and 19 different economic policies. we cannot go this way anymore. this is why we are advocating for tax harmonization. would be up -- step tax harmonization between france and germany. that note convinced
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later than 2018, we should be able, with germany, to have a common corporate tax, which should be the basis for harmonization of all corporate taxes at the level of the 19 member states of the eurozone. >> what concession do you expect from the germans in order to further european integration, and in exchange, would you accept a german as the head of the ecb, for example? >> be patient. we are in 2017 and this will begin in 2019. we still have time before deciding who will be the next .hair of the ecb beforeshould not wait taking decisions as far as the integration of the eurozone is concerned. i really think we should be able at the end of 2017 to take a
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step toward more integration within the eurozone. i want to bring steve rattner in. on paper, at least, we should have it easier than they do. the difficulties are there. anything, whenf we got this joint statement from republicans and the white house on what the path forward is, at least in broad terms, on tax reform? >> i don't think very much changed. we learned the border adjustment tax is dead, which makes things more difficult, because that was going to create the kind of revenue the french finance minister was talking about. we had a lot of pushback on state and local tax element nation. if they lose that, they have lost another big source of revenue. the problem is, everybody wants tax reform, but nobody can find
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the revenue to pay for it. i don't think there's that much appetite on the hill for increasing the deficit. david: is there a small olive extended to democrats question mark join us at the table? do you have any optimism -- ?emocrats questio join us at the table? do you have any optimism on this? steve: everyone always says join us at the table, but no one has any optimism. democratsf the sitting down like in 1986 and saying hey, let's all do this together, i think hell will freeze over first. david: is urgency the friend of ?ax reform is it advantageous to move things along as quickly as possible? steve: i think there's a yen and yang. it could help.
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you're going to run into the election of 2018. if they don't get it done this year, next year becomes tougher. there ishealth care, blowback when you don't do things under regular order in washington. david: thank you for joining me on set in new york. , morgan stanley's chief u.s. public policy strategist says financial couldlation efforts metamorphose size into reregulation. him to explain that next. this is bloomberg. ♪
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. michael zezas . .
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got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here.
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find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. david: this is "bloomberg markets: the trump economy." i'm david gura. limited visibility in washington this afternoon. let's start with the headlines on the bloomberg first world
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news -- first word news. chicago hasty of sued jeff sessions over his threat to revoke federal funding from so-called century cities. chicago says the justice department has no authority to impose sweeping conditions on the city and other municipalities that don't assist with the administration's crackdown on undocumented immigrants. chicago's complaint said these new conditions also fly in the face of long-standing city policy that promotes cooperation between local law-enforcement and immigrant communities. philippine president rodrigo duterte a met in manila with rex tillerson. as the highest level interaction to date between do tear tape -- rodrigo duterte eight and the trump administration. he dismissed questions about human rights, which she has been accused of abusing by several groups in his war against illegal drugs. the venezuelan president nicolas
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maduro is claiming victory after what he calls a terrorist attack on a military base over the weekend. twoays soldiers killed attackers and obtained a seven. the military says the attackers confessed they were working with opposition activists backed by foreign governments. in u.s. envoys arriving kuwait as part of washington's effort to defuse the gulf crisis. according to people familiar with the matter, the envoys will also visit the four countries in the alliance before heading to cutter --counter -- qutar. news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. lawmakers have failed to
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agree on health care, let's turn to the prospects for the rest of president trump's legislation. he says republican action may be restricted to reinterpreting legislation through executive action, a processing -- a process he says is executive relation. what is the dissension between these two terms? deregulation means the removal of the existing rule around an industry. the problem is, unless you have a legislative process that takes away the law that originates that rule, what you are really narrowed into as the executive branch is reinterpreting that rule. that's a process that is fraught with risk in the sense that as long as the laws on the books, the rule goes along with enforcing that law has to it here to with the law mandates. the judicial branch still has the right to make sure the law
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is enforced. anything the executive branch is an attempt to deregulate can often get past -- get pushed back. the trump of motivation but a two-year delay on the methane gas role in the judicial branch says you have to leave that on the books until you come up with a new rule. david: you were at the actions taking are already reflected in risk markets, so investors should focus on future regular tory efforts. -- regulatory efforts. mr. zezas: it makes sense that after the election, you kind of went from -- most people work scripting -- were expecting no legislative momentum. donald trump wins at a republican unified control government, you went from having limited control to something higher. you had a spike in ceo confidence and other business confidence indicators in the extent the market would rally on
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that because investors use that as a forward-looking indicator. now, it's a question of whether or not there is the legislative juice to execute on that. deregulation was specifically cited in a number of those surveys as a reason for confidence. what we're seeing here is that confident -- that process is going to take a lot longer than expected. it's reinterpretation of existing rules, on average, the cbo says it's a four-year long process. they are not going to be material impact in the near term. if you are bullish on risk asset, you need to focus that more on the underlying it was economy and other factors as opposed to exogenous boost from the u.s. government. david: what is the sense of how new one is to approach this administration has towards regulation? reality hase the caught up to the optimism and enthusiasm the members of this administration have. you confront the reality when you were in the office. how much he wants to they have looking at all of this stuff? mr. zezas: it's difficult to know.
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been well publicized how far behind they are on staffing. if you think about the reregulation process and that might impact the utility industry or telecom, simply is ang people in the seats necessary first step to even understanding specifically what they are trying to do. we haven't even gotten to that first step. there's nothing to suggest that they are going to be able to move faster than history would suggest previous admin's rations have moved, which the cbo says on average is about four years. that's a range of one years to 14 years on some rules. david: when you look at the tv of what -- the teeth of what the president says. early on, he was saying to create a regulation, you have to take away two. as i had a marked difference on the regular tory landscape? -- the regulatory landscape? mr. zezas: not yet.
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there hasn't been any real removal and there hasn't been any active effort on the part of the administration or authorized by congress to create new rules to test that one in, two out mandate. i wouldn't say you should dismiss it, but i don't think we have nearly enough evidence. to judge whether or not that rule actually can hold. there is plenty of unintended consequences. two weeks ago, the fda rolled out this new rule on tobacco regulation, which is a remnant of a law that was passed in 2009. the legally, mandated process around regulation has a very long time tale. the idea the trump administration would preside over deregulation and nothing pushing in the other direction doesn't necessarily make sense, because these things live beyond presidencies, unless congress is acting to deregulate. they have a path to
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do that because there's no credible bipartisan path in the senate to do that. david: i think the impulses to look to congress as a metric of what's going to change. it sounds like that's not where you should be looking. what should be looked toward? -- fstot? on we highly the financial sector as an exception to the skepticism. even though the process of reinterpreting dodd-frank may take a long time, that was a broadly written rule in reaction to the financial crisis allowing regulators to get their arms around things that were unclear at the moment. because it was written in such a vague way, you really can andterpret for the banks our banking analysts highlighted this is a reason you could see a 16% ats boost in the sector over the next few years. it's really difficult to sort of point outside of a touch and go indicator in telecom and pharma
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and other places, where certain certainointed to a subcommittee or subgroup might give you a hint as to what direction things are going. it's too soon to be investable related to all of the other factors that go into valuing the stock and the stock market writ large. , joining usel zezas here in new york. coming up, the latest in the tensions between the u.s. and russia as secretary of state rex tillerson meets with his russian counterpart and promises a response to russia's decision to expel 700 u.s. diplomats from russia. this is bloomberg. ♪
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david: this is "bloomberg markets: the trump economy." i'm david gura.
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time now for the stock of the hour. we're looking at rockwell collins, surging to record highs. united technologies looks into a possible buyout. oliver renick joins me. we heard a brief summary of this from julie hyman a moment ago. catches up to speed on what's going on here. oliver: this could potentially be a pretty big deal. this is bloomberg reporting on friday that it's moving the market this morning. this is a deal that could be potentially very large, one of the biggest in the industry. the last big one we saw was warned buffett's berkshire hathaway around $37 billion. this is $95 billion united technologies and another 21 billion. we are crossing the $100 billion mark when you combine the two. it looks like it could be upwards of $140 a share, a pretty big boost from where we are for rockwell collins, which is at a pretty good year so far. david: are there deal words in the situation like this?
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how rockwell looks against its peers? oliver: rockwell does look pretty good. it's one of the best functions on the bloomberg, relative value correlation. this is a great way to compare the peers. this is profit margin versus sales growth, looking pretty good for sales growth. the blue circle right here is rockwell collins, all the other circles are its peers. we are far over on the right, which means the profit margin is good. is to double digits. sales growth over here also very positive. topline line has improved and whose margins have kept up better than the rest of their peers. as an important part of this are looking at avionics, which is electronic equipment in the planes. a lot of parts the going to these big jets, and some of these more streamlined jets we talk about. i think this is probably a big appeal anytime you have a
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company buying another one, you want to see that there's room to operate. david: oliver renick, with the stock of the hour. i want to turn now to u.s. russian relations. secretary of state rex tillerson met over the weekend with sergey with their first face-to-face talks as president trump signed a new bill imposing sanctions on russia. tillerson says the trump administration will respond by september 1 russia's move to expel 100 -- hundreds of diplomats from russia. joining us now is michael atpenter, senior director the clinton biden center forward to clumsy and global engagement. diplomacy and global engagement. the president has signed this legislation, somewhat begrudgingly, tightening sanctions and restricting what he is able to do to change the contours of the think inch -- the sanctions package. the sanctions law is a very strong one that's going to restrict any transactions with russia's
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defense and intelligence sectors , with some of its offshore arctic and deepwater energy sector. this will have a real long-term hit on the russian economy. russia has chosen to retaliate by reducing essentially the staff of the u.s. mission in russia. it is not anywhere near as significant as what the sanctions bill will do to russia. what's interesting is the trump administration has decided to not come out and condemn the russian move. instead, they said they are going to take until september to decide what to do, which is fine. or they have done that is on is echoed the russian talking to suggest that congress is to blame for the deterioration in our relationship. and that the administration wants to get along and essentially move past this. david: what is the goal for secretary of state rex tillerson with the meeting this week and what is the relationship more generally?
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eluded the previous relationship that sergey lavrov had with john kerry, they visited with and talk to each other most weeks. they had a close diplomatic relationship. thisarkedly different is one and is that kind of relationship that secretary of state rex tillerson like to have with his russian counterpart? mr. carpenter: i think he would. i think he would like to have a close, amicable relationship with for mr. lavrov. it's in everyone's interest that they are able to communicate well. the problem here is not really with the amount of frequency of communication, or the amicable this of their relationship. the problem has to do with russia's actions and what they are doing in ukraine. ur ukrainian civilians killed by either russian proxies or russian troops in ukraine. we have russia's intervention in syria and their constant social media intervention here in the united states. until their behavior changes,
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it's hard to see how the tenor of the relationship writ large changes, regardless of whether there is constant communication or not. david: are you satisfied with the degree to which secretary of state rex tillerson is talking about russian involvement in the u.s. presidential election, and is that coming across as a unified mission -- message? mr. carpenter: no. in fact, it's absolutely jarring that both the president and the secretary of state are not regularly condemning russia's interference in our election, and continued interference on social media in u.s. affairs. it's ludicrous to suggest that this has ended. the russian influence operation is essentially ongoing. until the administration takes it upon itself to criticize what has happened, and not the state that we are going to move on from this and try to find some way to cooperate. it's fine to try and find a way
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to cooperate in north korea or syria or elsewhere, but you have to recognize what happened for what is on call it out. david: there the relationship itself that arguably needs repair, and you look at hotspots around the world that are in part -- the duration and part is governed by with the u.s. does or what russia does. you look at ukraine on syria. what is the deficit of not having a good relationship here? frankly, i think that's the wrong way to look at it. i think russia's primary aim in syria was to intervene to prop up the assad regime, and to devastate -- death -- decimate the moderate opposition that the united states was supporting. the notion that if we had a better relationship, our goals were line is a false one. the goals were fundamentally incompatible. russia's ostensible reason for intervening in syria was to take out the islamic state, but the vast preponderance of their airstrikes have been at moderate
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opposition and not against islamic state. the same ukraine. there's talk about the potential for negotiations commencing on the solutions of ukraine crisis. so russia's ultimate objective in ukraine is to control the geopolitical trajectory and essentially have a change of regime in kiev. we will not see eye to eye and no amount of dialogue and no amount of trying to find common interest is going to square that circle. the secretary of state said relations with russia were at a low point. how low were they in your estimation and how different are the day from the way they have been? mr. carpenter: i think it's true that u.s. russian relations are at a low point. they have been essentially a low returned toputin the kremlin in 2012. when putin came back to power -- she's been in power for 15
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years, but when he came back to the kremlin in 2012 especially, he took a hard line view against the united states. , they gaveut usaid asylum to snowden, a number of things happened and they really decided to stick it to the u.s. they saw the u.s. as their primary geopolitical adversary. everything that has happened sense is essentially follow that trajectory. it's not really the amount of work that it's going to take, it's going to take russia changing its behavior. that is not something that you can necessarily negotiate. that's going to take pressure and leverage. david: great to speak with you. michael carpenter, former deputy assistant secretary of state. joining me from washington. the latest onve the unanimous vote in the united nations security council slap north korea with new sanctions. will it be enough to get north korea to stop its nuclear and icbm test? that's coming up next. this is bloomberg. ♪
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david: welcome back to "bloomberg markets: the trump economy." i'm david gura. the united nations security council unanimously posted new sanctions on north korea, covering a range of items from exports to financial transactions. joining us is built very -- bill fairy. what's changed? what changes in regards to the pressure the north korea is under? >> thanks, david. these sanctions are substantial and the fact that they are targeting about $1 billion in north korean exports which is primarily to china, the largest trading partner north korea has. their main source of foreign currency. in that sense, they are significant. for sanchez toe
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take effect and china's previous sanctions -- last month, they were to icbm test. david: you through the goal here is to have a diplomatic solution to this crisis. there was a statement out today, we will under no circumstances put nukes and ballistic rockets on the negotiating table, neither will we move an inch unless the hostile policy and nuclear threat of the u.s. against north korea are fundamentally eliminated. , what is the likelihood that we have all these parties at the negotiating table? >> if you take north korea's statement on its face, it's hard to see how we end up back at the negotiating table before they really get to the point, technologically, where they can deliver a nuclear warhead to the united rates. will the u.s. let them get to that point? the u.s. policy is no, but so far, north korea's progress in
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developing these missiles has been ahead of the pace expected by u.s. intelligence agencies. secretary of state tillerson said on his trip in southeast asia that it would be helpful if north korea reduced the pace, slow down the nuclear tests. it's hard to see that happening, given that this is really north korea's primary goal, to develop this missile system and then be able to force people to the table. david: china playing such an outsized role. at the meeting in manila, they don't want the situation to escalate further. it seems like it's on that track, however. >> is going to be a real interesting test of china's influence over north korea. they put a temporary ban on coal imports from north korea earlier this year. that prompted north korea to say the chinese were dancing to the tune of the united states. now, these are even more significant sanctions, but we'll have to see in the coming weeks and months whether they really end up pinching pyongyang, or
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whether the regime goes forward and keeps its systems. david: the president of united states said donald trump contacted his south korean counterpart. what is your sense of the quality of the relationship between those two leaders? early on, the president developed a friendship with the president of japan. is the relationship with south korea as strong? >> interrelationship of alt-right quickly. this at administration has only been -- it is a relationship that developed very quickly. this administration has only been around for seven months. it had a rocky start with south korea questioning the value of the missile-defense system that the u.s. began to install at the end of the obama administration. doubt that little the south koreans are interested in grateful for that u.s. defensive measure of these two leaders seem to be talking to each other much more frequently than either of the administration. david: what are you watching for next?
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we had the meeting in manila, what is the indication of the efficacy of the sanctions? >> we are looking for any kind of data about whether there is any pinch in terms of foreign currency that north korea has access to. whether these imports or exports from north korea really flowing down. what we saw earlier this year is even though china had been some sanctions on north korea, their chinese exports to north korea actually increased, so we will see. david: thanks for joining me this afternoon. coming up, sprint on the hunt for a buyer. that's coming up next. this is bloomberg. ♪
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>> it's 11:00 in san francisco, i'm scarlet fu. julia: and i'm julia chatterley. welcome to "bloomberg markets."
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♪ we're live in bloomberg world headquarters in new york over the next hour. the top stories we are covering on the bloomberg and from around the world. u.s. stocks hovering at record highs, but small caps have not gotten in on the action. we speak with david nadel from royce and associates about smaller opportunities, particularly abroad. opec representatives meeting and i would be to discuss crude production cuts, but will falling as investors still seek reassurance. and softbank on its latest earning results as deals and investments kick in the high gear. foriscussed the game plan the global pension fund. u.s. stock markets close in two hours time and julie hyman has been tracking the record high moves. julie: on the dow, it's a record high. 10 straight sessions the dow is

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