tv Bloomberg Markets The Trump Economy Bloomberg August 14, 2017 1:00pm-2:00pm EDT
racism is evil, that the trumpmation president made after what many said was a halfhearted attempt to condemn the rise in charlottesville. corporate leadership came together sane they needed to hear more from the president. the question is is it enough? will it help or will it hurt efforts to get china to pitch in on north korea? and banning bannon. then he says that's enough time to know where the president is heading on the controversial advisor.
president trump moments ago addressed the riot of flight ,upremacists in charlottesville virginia. president trump: racism is evil and those who cause violence in its name are criminals and thugs. including the kkk, neo-nazis, white supremacists, and other hate groups that are repugnant to everything we hold dear as americans. >> the president had been criticized his failure to blame the hate group and brought condemnation from any, including leaders in his own party. joining us now are senior executive editor for economics and government and our chief washington correspondent. you are there at the white house where the president made his remarks. trump facing criticism that this is too little too late following the charlottesville tragedy over the weekend. vice president mike pence saying
to nbc news first announcing lights a premises him as well as neo-nazi as him. president trump pressure from the business community when the ceo resigned from the president manufacturing counsel. to tweet out in the attack against mr. fraser for resigning from that board. a couple of comments from several prominent ceos. he said he will be staying on the president manufacturing. all urging the presidents that have come out for more response.
a number of senior republicans came out and really win after the presidency. referring to his brother who died fighting the nazis saying he did and watch -- will this be enough to bring the republicans back on board. >> we are waiting to see the president speaking and wrapping up moments ago. pressure republican put on the white house. the president saying he did open up a civil rights investigation led by jeff sessions, who called this an issue of domestic terrorism. before the president made his remarks.
on china and trade policy. that thes turn out spokesperson says he will remain on the cap -- remain on the council. he's not coming off the council. >> those headlines crossing the terminal. look at all of the different ceos from the various business sectors who have come out against this led by kent fraser. then meg whitman issuing a statement praising kent fraser. we have other companies and their leadership on this. the business community rallying against. a champion of american business. american business was probably supported.
>> is going to be interesting to see in the coming days and weeks. clearly it was a liability to be associated. they saw on the immigration people have pursued a gradual drifting away from donald trump. the difficulties in a line with this president. it's better to sit at the table and try to influence things than simply walk away. >> at the same time -- he did not try to make amends at all >> we are watching that as
whether this counsel has any power. >> they think they put the six -- put this issue behind them at this point? >> the president naming neo-nazi as him. it is a signal that they heard the business community. perhaps they listen to the american people. it is the universal condemnation on the president's response to this. there is no question that what could have been a moment for the president to unify the nation they quickly got away from them. where's get a check now markets stand. >> we are looking at a nice rally for the major averages. this by tragic events in charlottesville over the weekend
and after last week's selloff, for the s&p 500 on a weekly basis. seem to have all of these events and this is par for the course for what we have seen more recently, we have seen selloffs followed by nice rallies. 500 on paper, the best day of april 24. let's take a look at this chart. week the dow transport is not immune to that selloff. down 1% on thursday. we do see the dow transport to the 200 day moving average. its risingnoticing and the buyers are in control. the sellers are pressuring the
buyers. relatively big selloff and very beeresting this is going to choppy for the dow transports. maybe there is more of a pullback ahead. she thinks the correction could be ahead. 1.8% after reports that china is finding activities are declining. the railroad company trading down. and then united continental getting a bit as well, really helping out there. let's take a look at these stocks. surveyave a bloomberg
with all economists agreeing president trump will push through tax reform by november 2018. these are some of goldman sachs -- from cbs all the way down to southwest airline. >> thank you so much. it mean to the economy? the results of our latest bloomberg survey of economists live from bloomberg -- live from new york, this is bloomberg.
this is bloomberg markets the trump economy. let's check in on the bloomberg first word news. >> president trump says the department of justice opened a civil rights investigation into the violence that occurred this weekend at a white nationalist march in virginia. >> to anyone who acted racistlly in this violence, you will be held accountable. justice will be delivered. the president condemned white nationalist groups following the -- calling the kkk, neo-nazis, and white supremacists criminals and sucks. stepping up their attack six weeks before voters decide whether to give them a fourth term. merkel was accused of failing to a trust the diesel spindle -- diesel scandal.
winds arethe fierce making it tough on firefighters battling a large wildfire north of athens. has damaged at least 20 homes and threatens more as it continues to burn uncontained. no injuries have been reported. trying to have public offenders replaced with private attorneys. a federal judge in new york said today the government would not guarantee that the fees would not be seized because they were paid with drug money. pleaded notffickers guilty to charges of running a that launches billions and oversaw murders and kidnappings. powered by 2700 journalists and analysts in more than 120
countries. this is bloomberg. >> economic forecasters overwhelmingly expect president trump and his fellow republicans to push through tax cuts in time for next year's congressional election. they also say those cuts won't do well to spur economic growth. this according to a new bloomberg survey. that redline is the economist think is likely. what the -- what makes it so confident they are quite a tax cuts this year? >> majority of economists surveyed earlier this month are expecting tax cuts before the november midterm elections. out is important to point his tax cuts are different from tax reform.
the kind we saw under former president ronald reagan. cuts.hear about tax lights so important and so much more difficult? it is something as i've said before that hasn't happened in more than 30 years. the problem is republican leaders want user process known as reconciliation. there are often many special interest groups that are protective of the tax breaks they get and will be really reticent to see those go away. >> that reconciliation is important because you don't have to have democrats go along with republicans. bipartisan --as a
if we don't get democrats along we just can't get reform? i think it is very difficult to see the reagan style reform we had back in 1986. >> tell about what the economists have paid president trump has been saying we want 3%. the economists are saying no, it's not going to be close to that. a 2/10 of a percent. >> the economists that we surveyed, they see a short-term jolt. for individuals and corporations . we would see economic growth in 2018. we have seen an economic growth
average of 2%, 2.1%. >> for that matter in the white house, they need permanent tax changes. people given up on that notion giving permanent changes to the tax code? >> i don't think they have given up on it in the tax statement we see last month. they want the goal to be permanent tax reform. it remains to be seen if we can see that happen. there are some he things whenkers have to get done they return from recess after august. and debtt negotiations limit. >> you mentioned the big six.
senate, to from the house, two from the white house. are we still going to have a plan out by early september? are we going to have this done by the end of the calendar year? >> i know he said the first, second and third priorities -- we did hear from the white house on writing an official said asked month we should be agreed-upon principles from the big six. >> from washington -- our team leader for tax reporting. former chairman of the joint chiefs of staff will tell us whether risk of nuclear conflict with north korea is higher than it has ever been before.
no prescriptions and very little effort. it's a model but a real guy with real bags underneath his eyes. home.e at i had the time or on and we were screaming four minutes 34 seconds, completely gone. >> i was a little skeptical i'm not going to live. that can't possibly work. i'm telling you it really works. >> it works on the appearance. this would be a daily thing or if you want to get rid of the geek -- get rid of the bag. it small powerful, right underneath your eyes. unionse high school your -- high school reunions. >> get up to 50% off the retail
price. number on your screen and watch the transformation happen to you. >> this is bloomberg markets, the trump economy. earlier today i talked with retired -- there is no one in a better position to give us that position. -- that assessment. he served as chief of staff under president barack obama. i asked what he thought of the language and tone. >> the rhetoric is so far out there. use the phrase locked and loaded, he is clearly in that example using military
options. of room not a lot between locked and loaded. on both sides there has been so much bombastic rhetoric that it for ourneuver space leadership and leaders in our country as well in terms of trying to resolve this crisis piece. >> how the uss the level of >> i think general mcmaster over the weekend said reassuring statements that we are not -- that war or conflict is not imminent. with the developments that have occurred so rapidly in north korea, in terms of systems,g the missile
as well as the nuclear technology. much quicker than any of us have anticipated. president trump with a very straightforward direct message. i don't think he's a rational actor. be suicidal. i think the overall risk is exceptionally high. unique to donald chums administration. is there any reason to believe we could go book -- could go forward diplomatically.
>> in the first case, what would be an indicator that would be possible would be movement from china. long as we try to resolve the situation in north korea china has stood back. it is it mean we are out of it. need to review it and look at it from china's perspective. this is not about reunification. not about regime change. about getting rid of the nuclear weapons and nuclear capability in the north. and support china in leading that effort.
i think president trump estimates move xi jingping in china. that, to me is the most and most reliable path to peaceful solution. >> up next on a day that president trump is expected to be that to tell his trader sensitive to look into china and intellectual property, we will talk about what that could mean. our guest will be the ambassador to china. live from new york, this is bloomberg.
mark crumpton has more. mark: an ohio man accused of driving his car into a group of protesters at a white nationalist rally in charlottesville, virginia will remain in jail until he has an attorney. today. set bond james fields junior will face second-degree murder and other charges. he is accused of fatally injuring one woman and hurting 19 others. economists surveyed say that president trump will get his tax cut. they do not think the deductions will do much for the economy next year. 29 of the 38 surveyed expect passive to packs a -- bill by next year's election. year's2/10 of 1% to next gdp growth. the u.k. will try to gain traction in negotiations.
they include proposals for the , continuityireland on the availability of goods, and access to official documents after brexit. a week from today this symbol of for fourll go silent years. that is how long it will take to complete work on big ben. the bell must stop ringing to ensure the safety of workers. it has rung out largely uninterrupted for 157 years. global news, 24 hours a day, powered by 2700 journalists and analysts, and 120 countries. i have mark crumpton. david: trade back on the agenda as the president is expected to ask his representative to consider sanctions against china for intellectual property abuses. this the same time as he is trying to get china to diffuse
with north korea. here is bloomberg's team leader for u.s. economic policy. explain the 301 action the president is taking the first step towards initiating. 3:00 p.m. we expect the president to sign an executive memo to order the united states trade office to consider investigating china for intellectual property violations. we expect this to come -- what we learned over the weekend is that they will be specifically looking into whether there has been violation to the intellectual property rights when china's practice of forcing u.s. companies to join joint ventures in order to gain access to chinese markets. there are a lot of things that people have said. things like copying videos and
replication. i understand they are not looking at that, they're looking at a subset. that is if u.s. companies want to do business in china they have to do joint venture and share their intellectual property. it is a narrower action. sarah: many companies were happy to get a foothold in china and were willing to accept the rules that come that sometimes a high cost for them. in now, growth is frozen china and years have passed since china join the wto. a lot of companies are questioning if you are a high-tech company, do i really want to handover secret santa give them away? there is -- handover secrets and give them away. us a sense of the timeline. when donald trump was first elected, a lot were concerned they would be tariffs imposed on
day one against chinese goods. how long would it take for anything to be done in this specific area of intellectual property? sarah: this would be considered the first tangible big trade action against china. it is not a done deal. there won't be penalties or sanctions tomorrow. the u.s. tr will go to its advisory committees and decide whether or not to go forward with the investigation. if it does, it could take a year. if there is a problem the u.s. could go through the wto to see if they could find resolution, china, or putth penalties right away against products that are seen to be violators against u.s. producers. it is the start of a long process. david: thank you, so much. is someone who knows china very well. he served as the united states
ambassador to beijing under president obama after serving 36 years in the u.s. senate representing montana, including the chair of the finance committee. he joins us from bozeman, montana. thank you for being here. welcome. max: you bet. thank you. david: give us a sense where we stand with china. we are tentatively starting the 301 procedure regarding intellectual property. you have concerns with the way china deals with u.s. intellectual property. do you think the president is taking the right step? max: 2 points. updefinitely have to stand to china. china is very clever. one step at a time to tighten , mayberotectionism subsidies for their core industries. we have to push back. we haven't pushed back enough in my judgment. these trade actions should not
be tied to our efforts in north korea. they are 2 entirely separate u.s. interests. if we say we back off trade if you're good with us on north korea, that will hurt us on trade. we have to keep up in a very solid way. it makes sense, ambassador. i want to put out something the president said over the weekend that exclusively tied north korea with trade. president trump: we lose hundreds of billions of dollars the year on trade with china. they know how i feel. it is not going to continue like that. if china helps us, i feel differently towards trade. a lot differently towards trade. david: there you have it. the president saying if they help us on north korea he will feel differently. i take it you feel that is a mistake in dealing with the chinese? max: i think it is a big
mistake. i think we should push back on trade matters as they are. china will respect us if we do. to some degree, we have been lane yet. .hina -- have been lenient china has been disrespectful to us on trade. the chinese respect candor and straight talk. if you stand up to them, they will back off. they will complain, but by and large they will back off. david: dealing with north korea, keeping them separate, what prospects are getting china to go along with us and bringing pressure to bear on north korea? we have to put ourselves in the shoes of china. it is extremely important. china sees north korea as an irritant, but they don't want the korean peninsula to be dislocated or fall apart.
they don't want refugees coming over and they clearly don't want the u.s. and south korea to have a greater influence in the peninsula. frankly, i think china is the key to this, but the key to china is for the united states to privately talk to china. and say what can we do with this border inross the north korea? china wants stability as much as we do. they don't want a nuclear north korea. my judgment is they want stability more than a non-nuclear north korea. david: we spoke with admiral mike mullen today. he said in the past china put stability ahead of not having nuclear weapons. he thinks that might be changing. do you have any reason to think china is more concerned with the nuclear possibility? beijing hear people in and other parts of china complain more about kim jong-un
when he shoots another missile. they don't like it. frankly, i don't think it has risen to the level of causing the government to change much. a big force in china is the p oa, people's liberation army. la,y don't like what -- the p people's liberation army. they don't like what is going on in north korea, but they don't want to put pressure on it because that will destabilize it . china cares about its legitimacy and power. they will do anything possible to keep things stable. david: henry kissinger wrote an "washingtonin the journal" over the weekend. he says not only do we have to be in the same boat as china, we have to be in the same approach. an understanding in washington a preaching is the prerequisite earization
in korea. do we have a common approach we can present? max: it takes a lot of work and effort. i think our president should spend more time with their president. there should be private conversations. they should not conduct diplomacyprivate -- publicly. both countries have to cool the rhetoric, start talking, and slowly build up trust and confidence. in my judgment, that is the only way it will happen. you for being here. former u.s. senator and former ambassador to china. we have continued reaction from the situation in charlottesville and the president's reaction.
now, a statement condemning the charlottesville violence. he is not saying if he will remain on the president's manufacturing counsel. kenneth frazier announced he will quit the panel as a matter of personal conscience. to whatr ceo reacting happened in challenge bell in the way the president is treating it. anthony scaramucci once again targeting steve bannon. the latest on the war of words next. from new york and washington, this is bloomberg. ♪
theater owners feeling the crunch. amc is not immune and taking actions to boost its bottom line. .ere is emma chandra what are we sitting and why? emma: u.s. box office returns down 3.4% compared to last year for all theater owners. it is the u.s.'s biggest theater owner with over 600 theaters and 8000 screens. they are feeling the squeeze. they're having a dismal year. stock is down 58%. much more than its contemporaries. had an ugly second quarter. a net loss of 117 million dollars and they see that weakness continue into the third quarter. they say they will offload $400 million, which analysts are pleased to hear. they have a stake in the company
that made spotlight, which won and oscar a few years ago. there is a long way to go to get to the $400 million. another big cloud as ownership. is based outowner of china. china is cutting down on lending. strategy, which was acquisition borrowing to buy things, is not going to continue. amc, howing back to much of it is bad movies and how much of it is a structural change in the business? and: there are bad movies, a structural change in the u.s. box office headwinds facing problems with their ownership structure. the other thing is moviegoing is obviously stagnant and has been for a number of years. one of those things is the
netflix event. 4001.minal is g #btv that shows how good netflix has been doing compared to other content makers like cbs and disney. nothingave grown, but compared to netflix. people are staying home and watching tv series and movies. disneya big producer for is going to netflix taking her whole company. emma: more struggle for the traditional content makers. david: netflix has a very big .ocketbook at the moment short-lived white house can medications director anthony scaramucci speaking out on "this week" blasting steve bannon. saying he is steering the president in the wrong
direction. anthony scaramucci: you have the annon influence, which is snag on the president. if he wants to execute the agenda for the middle class and lower class people, he has to move away from the bannon and breitbart nonsense. it is not in the president's interest. david: his previous lewd comments about fan and in an interview with "the new yorker" led to an exit from the white house after 11 days on the job. up sure that you picked there are subtle things that mr. scaramucci was doing. annonbart, trying fromrry him with breitbart which he came. are there plans to get rid of which isnon kumal clearly what anthony scaramucci was suggesting? >> there are a couple of
data points. scaramucci said he is still speaking with the president. no one really leaves this white house. he is still in content. we're looking at h.r. mcmaster the national security adviser. he and bannon. deep faithaid he has in mcmaster multiple times. he was asked if he could continue working with bannon and was very equivocal. statement if bannon can operate with security. said to be anot fan of the hard right access. that might be putting pressure on his position. david: does this go beyond steve bannon as far as you can tell from your reporting? is there more in fighting or is
this really steve bannon being a catalyst? is: i think that bannon having feuds with a lot of people. he can be a contentious person. largely he represents a block within the white house. in this white house, there is rising and falling, allies and enemies. it could be subject specific. there is a question if there is a bannon segment in the white house, which i think there is, and whether or not they are getting along with anyone on a particular day is a huge part of the people are rising and falling. the fact they are no longer ofting along with the core things, john kelly and the national security apparatus, that is putting pressure on them from various angles in the white house. david: it is great fodder for the media to churn over. is it possibly getting in the way of the president's
agenda the way that anthony scaramucci is suggesting that steve bannon is. ? is there evidence of that? ben: absolutely. the president is being a counterpunch are coming from steve bannon. his relationship with congress and his ability to get legislation done can come down to steve bannon. donald trump is a counterpunch or whether or not steve bannon is there. the other thing that scaramucci was saying is that steve bannon 's attitudes are prevailing and pulling down donald trump's popularity numbers. there is no question that that will get in the way of his ability to get things through congress in the regulatory process. that might be why we have seen stalling. that is not necessarily steve bannon, but it is part of a larger problem in the white house. david: thank you for being with
david: this is "bloomberg markets: the trump economy." i am david westin. president donald trump is scheduled to travel to the next city for his first visit to trump tower sent he was inaugurated. joining us is kevin cirilli our chief washington correspondent. we are eager to get the president here because it will help our traffic situation a lot. when is he going to sign this document? kevin: after finally condemning white supremacists, neo-nazis, is expected to
sign a memorandum this afternoon. he will be requiring the ustr representative to represent whether or not china is still illegally requiring u.s. businesses to hand over intellectual property that u.s. businesses haply may do business with china. if that happens, the u.s. might be able to have new tariffs or wrangling with china. topa is north korea's economic partner. after that, the president will travel to ignor new york. brace yourself for traffic. he will be at trump tower tomorrow and tonight. he coming here? it is his home, in fairness, but why? atin: meetings tomorrow trump tower, in the middle of his august working vacation, as he calls it.
it is ahead of wednesday when negotiations are expected to begin in washington across town. that will be top republicans in congress being at the reagan library in california where they will be discussing tax reform, 1986, i believe, anniversary of comprehensive tax reform. .avid: you are correct 1986. how long in this round? give us a sense of the drama. we have heard a lot about nafta so far. there is a lot of drama in terms of mexico and negotiations that could be underway when congress returns from its recess. everyone is eager to know if funding for the border wall will be part of the budget that republicans will force to include to avoid a partial government shutdown. you'll be hearing a lot about
that in the nafta renegotiations. then the canadians also have concerns on a host of issues. we have seen the commerce issued directives against canadians on a host of industries, including lumber and cattle. it will be interesting to see when all of this gets underway. david: we will be coming back to you a lot, i'm afraid. no vacation for you. kevin cirilli at the white house. later, what did you miss ? 4:00 p.m.day at eastern time. you want to go to tv to watch all of our interviews. from new york and washington, this is bloomberg. ♪ ♪
julie: here are the top stories we are covering on the bloomberg and around the world. president trump assailing the ku klux klan and white nationalists for bigotry and of violence. his remarks come days after the charlottesville violence and .mong backlash from top ceos the president and his administration looking to turn attention to china to step up pressure on the country's abuses of intellectual property rights putting trade relations on the line. and taking a bite out of blue apron. requiring a 2% stake in the meal delivery service. in two hours.lose we check on more withbi