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tv   Bloomberg Markets The Trump Economy  Bloomberg  August 30, 2017 1:00pm-2:00pm EDT

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balance of power. we focus on the economy. here are the top stories we're watching at this hour. one day after visiting storm-ravaged texas, president trump is traveling to missouri to take on a storm of the political sort, convincing americans to support tax reform. is the u.s. out of words for the latest north korean provocation? president trump seems to think so. we will talk about what that means for american strategy toward north korea and kim jong-un. executive david olson wants donald trump to pardon michael milken. we will speak with him on his request later this hour. let's kick off with the bloomberg first word news with mark crumpton. mark: texas governor greg and
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that is holding a news conference in the state capital, austin, as texas battles floods affecting thousands of people. fortunately, the death toll has not been extensive, that thousands of people have been made homeless and are in shelters the cause of record amounts of rainfall left by harvey. meantime, the fema administrator is making it clear that the storm devastation stretches beyond houston. he gave an update today on the situation on the ground after harvey made a second landfall. , the effort oned houston. we have to understand there are multiple counties, over 50 counties impacted right now. we are continuing to watch the situation developed. citizens in louisiana are not in the clear. administrator long also says the ongoing operation is still in life saving mode. he is encouraging people to find ways to volunteer. louisiana residents may catch a
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break. weather forecasters say they expect less rain and wind from tropical storm harvey. projecting 1-3 inches of rain across most of western louisiana, but say there could be six inches in some spots. officials are also monitoring for isolated tornadoes. at least five deaths have been confirmed since harvey made landfall. european oil and gas companies are benefiting from supply gaps long after harvey crippled refineries along the u.s. coast, according to the ceo of total, who spoke to bloomberg tv today. nearly a quarter of u.s. fuel output has been knocked out since harvey made landfall as a hurricane. the largest oil refinery in the united states is shut down. the storm is estimated to make only a slight dent in the u.s. economy. reconstruction efforts are likely to be substantial enough to boost growth later this year, according to a bloomberg survey
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of economists. they estimate the storm will lower third-quarter annualized gdp 0.2%. 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. is vowingsident trump the government response to harvey will serve as a model for disaster recovery. estimated to reach up to $100 billion. here with the latest on how the administration and congress will handle the aftermath of harvey, we arelong to do list -- joined by our washington correspondent at the white house , senior editor of economics in washington. let's begin in texas. the president taking a bit of criticism initially for remarking on the size of the crowd and the turnout rather than talking about the victims. but can we say he had a good few days here? >> i think on balance he has
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done ok. there were some questions about high heels and other wardrobe issues. julia: not the president, of course. the first lady. >> we would have a completely different story there. but i think you have handled it pretty well. you tweeted today his extreme heartfelt feelings for the victims, which he did not do yesterday. and he is making all the right noises in terms of getting the help that the texans need to recover. i think he has on balance done ok. julia: let's leave the lou.cials to goldman sachs lowering the probability of some kind of event over the debt ceiling, when you incorporate in the shenanigans that have to be included here in order to get disaster relief funding signed off. is that the sense you are getting from d.c., that the risks surrounding debt relief are listening? fromu are hearing
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potential holdouts on a budget deal, a debt ceiling deal, that now is not the time to get involved in shutting down the government. now is not the time for the u.s. to default on its debt for the first time, when you have so many people suffering in texas. you are likely to hear more talk about getting a deal together to make sure the government stays open and the u.s. pays its debt. even if it is a short-term deal that just gets us to the end of the year or two the beginning of next year, we are hearing from republicans in the congress that they do not want to get involved in what would be a politically difficult situation, shutting down the government or having a debt default at the same time that people are suffering in texas. you are hearing more about a deal coming together. the president may have an opportunity to back down from his ultimatum over a wall, and have that fight another day, rather than making sure that he gets the money for the wall before the government shuts down at the beginning of next month. sensitive issues.
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talk to me about missouri and the speech from the president today on tax reform. he is expected to touchdown in the last half-hour to 45 minutes. what can we expect from the president? assessing this speech -- i have seen headlines on this. populism heavy and details perhaps light. be very similar to some of the campaign rallies the president did at the end of the campaign last year. he will be able to focus on a couple of points, and have a speech that does not have a lot of details and is heavy on populism. he is here to talk about how the economy has been rigged since the last time there was tax reform, and how his new tax plan will help the middle class. he will probably talk about the ideas he has rolled out so far, including a child care tax credit and increasing the personal deduction. some of the other parts of the
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tax reform plan have not been completed yet -- how to pay for it, whether it will increase the debt ceiling -- increase the debt. you can expect the president to steer clear of that and talk about helping american families by reducing their tax burden, and allow congress to deal with the details of how to put itether a plan and make sure can pass the house and the senate. , you mentioned donald trump's tweets this morning. he also tweeted on north korea. i would have asked the question about whether this was the new john kelly-run white house, and we have a measured response as far as north korean provocation. donald got a tweet from trump saying the time for talk is over. then, we had the secretary come out and say diplomacy is still an option. what is the take on north korea and john kelly, it if this is the initial test for the chief of is this a fail? isi do not think it
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necessarily a fail. kelly has definitely imposed a new kind of discipline on this white house. we are not seeing leak stories coming out about dissension. we have all made the point that you cannot control donald trump and his iphone. there was an initial market reaction. i think this is just going to be a matter where they are going to have to clean up whatever mess donald trump makes with his twitter account, and people are going to have to move beyond it. but they are going to have to get used to this pattern of discipline and donald trump going on twitter. great point about the leaking. that is a very valid point. thank you so much. we are going to delve more into these issues later on. say goodbye to our washington correspondent and the senior executive editor of international government and economic.
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coming up, president trump will call for a major rewrite of the u.s. tax code in missouri this afternoon. it is missing one thing -- details. we will discuss, next. ♪
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julia: this is bloomberg markets, balance of power. i am julia chatterley. let's check markets. abigail is here with the latest. abigail: we are looking at games for the major averages. for the nasdaq, a rally, up about 0.9%. the s&p 500 up 0.4%. the cow trailing, but both the dow and the s&p 500 earlier
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weaving between gains and losses. this follows yesterday's intraday volatility on tensions around north korea. open sharply lower, only to finish higher. katie is saying her trans-following in decatur's are improving. she wants to make sure the pullback is not going to deepen. we have not seen a record high in about three weeks. action today.ng the nasdaq up about 2.3%, on pace for its best day since june 23 -- since june 21, the first day of spring. if we look at some of the stocks helping the nasdaq biotech index -- insight genomics up on the news that insight and eli lilly are going to resubmit a new drug application around a rheumatoid arthritis drug. the street is very bullish on the recent acquisition or announcement yesterday to buy 11.9pharmaceuticals for
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billion dollars. this helps explain some of the health care strength. let's look at the monthly chart of the dow. moments ago, the dow was positive. now, it is slightly negative. it flips between the break even spot. nike and disney -- if those can recover, the dow will finish higher on the month. it is the last day of the month. right now, something that stands out is the fact that the s&p 500 is the one index out. let's hop into the bloomberg and look. this chart shows the monthly move for the three major averages. out of the election, we see big gains for all three. the s&p 500 in yellow, down zero point 6%. both the dow and the nasdaq higher on the month. but that is the worst monthly offormance since october last year, ahead of the election jitters.
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odds the s&p 500 can turn that around today and tomorrow -- you never know. julia: donald trump kicks off the campaign to overhaul u.s. tax policy with a visit to missouri. it is the first of several stops in the midwest. gary cohn, head of the national economic council, aims to get tax reform done by year-end. but is that timetable too optimistic? we are joined by a tax analyst with data partners and former senate tax staff or. she is with us from new orleans. great to have you on the show, henrietta. a lot of enthusiasm for the timetable from the gop establishment. that behind the scenes, the reality is somewhat different. henrietta: absolutely. thanks for having me. when i speak with senior republican lobbyists, they are very pessimistic that tax reform of any kind can get done at all. in the last one he hours, folks
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have been more inclined to say some time between the first and second quarters of next year, maybe referencing memorial day. more importantly than that is whether you could even get the 51 votes that republicans need for such a bill. based on what we are seeing and our ongoing conversations with staff, with vested interests, with everyone in between -- there does not look to be consensus on a bill at all this time. julia: is there any consensus? if we look at the comments made -- gary cohn -- there seems to be disbelief that corporate tax cuts will come. they may not be 15%, but they will come down. is that an agreed idea? henrietta: lowering the corporate rate is the goal of democrats and republicans alike. that has been a tale that has been spun in every presidential election since 1986.
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the question is whether it actually can get done. to your early question about, is there consensus -- there just is not. the way i phrase it is that republican tax writers are everywhere, and therefore they are nowhere. there is disagreement on personal income tax changes, alterations to the mortgage interest reduction or the state and local tax deduction. those are popular talking points for the white house, but there is a very difficult vote to take on capitol hill if you want to go to your members. of them are in a handful of states that have very high property taxes. to have just the republican members say we are going to take that deduction away from you is a really heavy ask for the president to request of his voters and lawmakers. julia: i think the company getting factor is that republicans are going this alone. i just said in a message to clients today, lowering the mortgage interest induction is a
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commonly understood part of a comprehensive tax reform bill. it is just that nobody wants to take that vote in a vacuum. asking republicans to do it while the democrats rail against them is a lot to ask. i do not think they can pull it off, frankly. julia: i want to point out we are showing you live pictures of missouri as the president is set to speak. gathering as they wait the speech in the next hour. i want to go back to the point you were making. advisor,, economic laid out in "the financial times" things he think would be protected. mortgage interest, charitable giving and contributions -- you think they believe -- do you think that to bring something together he has to follow through on those? righttta: that is the point. you make these promises that it will be protected. is, i read as a tax tougher
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there will still be in mortgage interest deduction remaining, but you are not saying you will not alter it. local taxes.te and same with how you tax retirement and savings accounts. it is the marginal changes. you could make protected mean whatever you want. in conversations with tax staffers on the hill, they are talking about capping itemized deductions, which keeps a little bit of the mortgage interest induction, but not all of it. once the homebuilders, the national association of realtors, the mortgage insurers -- once they get their hands on this, the thread starts to come undone. they really want concrete details and saying it will be protected is very far from a specific detail, and very far from a document. really, the staff once a piece of paper. julia: do you think hurricane harvey and the fallout will push back this timetable? you think, ifdo
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they cannot get comprehensive tax reform through? what is the best investors can hope for? henrietta: i think harvey is going to be an issue that members have to deal with as soon as they get that. the good news is that we have a hard stop on things like the government funding bill and the debt ceiling at the end of the month. the bleed effect of harvey does have a great natural stopping point at the end of september, leaving that with october, november, and december, going forward. unfortunately, i think the theer picture that might -- this go your budget. i do not think there is potential for the republicans to come together and pass the budget. if you don't pass the budget, you cannot pass the tax bill with just 51 votes. what i see happening at the end of this year is the natural backstop, which is a package of tax credits that congress passes every year for individuals and businesses alike.
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for instance, the tax credit to put new windows on your house that are energy efficient. i see support from democrats for extending those tax credits to get relief to individuals, relief to small businesses and corporations. i suspect that once the republican party's -- party is clear on not being able to get through a budget, they will move toward a bipartisan solution, and we will get a robust extension bill. for investors will be a 30% corporate tax reduction. julia: that is a really pushed back timetable. henrietta is the director of economic policy research. we are bringing you live coverage of president trump's remarks on tax reform at 2:30 p.m. new york time. ♪
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julia: this is bloomberg markets. breaking news, a bloomberg school. u.s. authorities are investigating china's state-owned oil company sinopec for allegedly bribing officials in california. this is one of the largest foreign state owned companies being investigated by u.s. prosecutors. if we get further headlines, i will bring them to you. president trump dismissed the idea of negotiating with north korea in response to kim jong-un's test firing a missile over japan. he treated the u.s. has been talking to north korea and paying them extortion money for 25 years. talking is not the answer. let's get to the state department and foreign policy reporter for bloomberg in washington. wait to have you on the show. tweet -- he said
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negotiations are still a possibility. what is the official line on the white house? >> that is a very good question and something we are all trying to figure out. 'swould say that jim mattis comments today were a little different than that. the time forwas diplomacy never runs out. that could mean all sorts of things. increased pressure, diplomatic responses -- that did not strike me as a direct contradiction of the president's tweet. the secretary of state, rex tillerson, has been saying for weeks that the u.s. wants to bring north korea to the negotiating table. he said the time was not right at that moment. they needed to see a better good-faith gesture from the north koreans. the u.s. wanted to bring them to the table for talks. president trump is saying talks are not the answer.
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the question here is, how do we interpret this? one is a blanket contradiction of the secretary of state. the other is the president being a little inarticulate in a tweet and saying he does not think the time for talk is right. the state department has since said they agree with the president that he is taking a tough stance. another sign of missed signals and confusing messages coming out of different branches of the u.s. government. julia: if you look at the response from the north koreans and kim jong-un, he is suggesting this is a prelude to attacking guam, where we know there is a high u.s. military presence. he is not coming to the table until he has proven he is a threat to the united states. where does that leave the response? the suggestion is the united states is out of work here. how do they bring this man to the table? >> this has been the challenge for a very long time.
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we have spoken to a lot of people over the last 24 hours who said it does not matter what the u.s. thinks. the problem is that kim jong-un has no interest in talks right now. he is not going to come to the table for talks until he has the ultimate leverage, which would be his ability to strike the united states with a nuclear-tipped intercontinental ballistic missile. there is simply no way he is going to engage until he can inflict maximum pressure and maximum urgency into those talks. it has forced the trump administration back into the same conundrum we have seen for years and years. julia: we will see where the red line is. a foreign policy reporter for bloomberg. up next, the total ceo ♪
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which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. julia: this is bloomberg markets. i am julia chatterley. david gura is off today.
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let us check in with mark crumpton. mark: officials say it is to soon to know if thousands of houston area houses flooded by torrential rain can be rebuilt. some homes have been flooded with as much as six feet of water. in this county flood officials say some homes in the area could be flooded again during controlled water releases from two reservoirs. in a letter to fbi director christopher wray, democratic senator tammy duckworth writes that carl icahn's former role as a regulatory advisor to president trump may have violated federal conflict of interest laws and warrants criminal investigation. senator duckworth added that carl icahn appears to have "abused his role as a special advisor by participating personally and substantially on a government matter directly affecting his own financial interests." has said he never had access to nonpublic information
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or profited from his position. the south korean counterpart welcome to the pentagon to discuss north korea -- jim mattis told reporters "we are never out of diplomatic solutions." his comments were in contrast to president trump, who tweeted that as far as dealing with pyongyang "the u.s. has been talking to north korea, paying extortion money, for 25 years. talking is not the answer." the united states and south korea called on the international community to work together to resolve the crisis with north korea at a united nations disarmament forum in geneva. the american ambassador to those talks said the united states does not seek to be a threat to the kim jong-un regime. >> however, we must respond to the serious threats it makes towards the united states and to our allies. we want to be clear to north korea that the united states has the unquestionable ability to
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defend itself and its allies. mark: ambassador would speaking at that form today in geneva. julia, back to you. julia: now, the impact on tropical storm harvey and the oil industry. we caught up with the ceo of total in versailles, france, and asked how harvey has impacted the company's refinery in port arthur. >> the refinery is stopped, fully stopped. yes, we had to face disaster situations. it is a hurricane which is very strong, one of the strongest in the history of the united states. we managed to make the refinery work until yesterday, and then we lost power. then, we had nothing to do. first, safety is our priority. frankly, it is nothing
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compared to what happens in texas. important. the americans in texas are facing a dramatic situation. >> with understand this is one of the more important refineries, 185,000 barrels a day. to much could it cost total have this shut down for a few days? >> the most important for us is not that. plants.petrochemical employees cannot reach the plants. they cannot go there. yes, it has an impact. the oil price in the u.s. is going down. the refineries, most of them are shut down. cost, the most important today is the security of our staff and the situation. >> why do you think it is not
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routine oil prices? >> today, in the u.s., the -- consumer oil is going down. increased its spread. but it should have a positive impact on products. we have less products, and the refining margins for european refineries are good. it is a situation for a group like total where there are floods in the u.s., but there is a refinery system in europe, and we benefit today from the situation in the u.s. it is difficult to answer your question because we are growing globally. by the way, oil refinery -- today it is doing well. >> another blow to u.s. capacity. what is your assumption on the overall impact of harvey on the u.s. oil market and the u.s. oil industry? that in texaseems it has direct impact.
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i am positive, optimistic, about the capacity of the u.s. to rebound. the u.s. is very reactive. it has an impact. texas is the oil country, i would say. i think there will be a strong mobilization from everybody to be able to restart. i trust our u.s. colleagues in all the industry to be able to recover from a dramatic situation. >> you are here to speak with the french finance minister. his highlyg to have expected labor reforms. 62% of the french believe macron is not going to belabor this for -- not going to deliver this reform. >> he will. a bunch of french people are ready to accept it. it is finding the right balance between reforms and execution by the population.
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i think the government is willing to make some social reforms of the labor market area it is not easy, because we have our culture. i am just coming from denmark, where we have a national oil and gas champion, denmark. there is a huge flexibility on the labor market. there is strong security, and stability in the regime. credit to the president macron and the government that they are willing to make reforms. i think there is a chance today in france with president macron. but nobody thinks the state will solve the situation alone. enterprise, oil corporations and companies, we have created jobs. like the slogan here -- let us free corporations. let's give -- let's believe in entrepreneurship. that is the sense of the reform.
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what we should expect from a government more is the trust to create enterprise. this is what president macron tries to do. i wish it would be successful. meeting today, how is total contributing? are a big contributor. we are in oil and gas company. ambition.d the total in 20 years will have 20% of its business in these low carbon energy's. i think it was an interesting discussion. i think they understand that a company like total can be a major player. in thisot to be put camp of an oil and gas company. we will be a real player. it was motivating for him. julia: fascinating conversation
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with the ceo of total, talking our reporter. coming up, federal watchdog agencies are looking into the government lays for the trump international hotel in washington. all the details coming next. ♪
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marketshis is bloomberg balance of power. i am julia chatterley. shares of chipmaker analog devices are up the most since february after beating expectations and giving guidance that surpassed estimates. we are joined by oliver renick.
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results,retty good adding to a series of good results. not only did they beat earnings estimates on third-quarter eps -- it was roughly one cent above, so a pretty solid beat. better thanooking expected by a couple basis points. they also updated their guidance. it was above expectations. that is the thing everybody loves. just to give some perspective, this is a company that is used to beating. earnings history -- this is a great landing page for earnings season. the percent surprise column on earnings for each of these quarters -- about 10%, 22% last quarter. that is a lot of green. that is a company that has basically beaten every quarter of earnings for a couple of years. the stock price reflects that. another positive day here for investors in analog devices. julia: we have the acquisition
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of linear technology spinning into the numbers as well. is, given thethat consistency we are already seeing. oliver: that is a good point. i will say that anytime you have a transaction like that, it is good to be able to still show a number that is ahead of expectations. that introduces some degree of the unknown. julia: talking about the impacts from the defense sector as well -- these guys supply the defense secretary. -- the defense sector. you talked about the pickup. oliver: this is a follow-up to yesterday, looking at defense stocks. this is analog devices, semiconductors, and -- you have analog and digital devices. analog is the real world, if you think about the weather, temperature, munication. they are a big supplier -- i am looking at the function right now. they are a big supplier to some
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of these companies we talked about yesterday. you see honeywell, raytheon, lockheed martin. these are companies they are supplying a good amount to, as far as the revenue. this is a pretty important company. if you see investors looking to defense companies as potential beneficiaries of heightened tensions around the world, they are stocking up on materials. that is one place they are going to buy from. julia: this is a beautiful function. oliver: supply chain analysis. you can go on the left side as well, but we will say that. julia: to be continued. great to have you on. a story first reported by bloomberg. federal watchdog agencies are taking an active look at the controversial government lise at a trump international hotel in washington, which is on federal property. joins us now from our washington bureau. great to have you on. give us a sense of precisely
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what the watchdogs are probing. where might the conflicts of interest come? >> it helps to start at the beginning with a little bit of background. back in late march, the general services administration had been asked to decide whether or not police least with the trump international hotel in d.c., just blocks away from the white house on pennsylvania avenue -- whether it was in violation since president trump took office, for a number of reasons. they determined in late march that in fact it was in "full compliance," and there were no issues. , a number of critics and skeptics -- folks who had been concerned about this, including democratic members of congress and independent ethics experts, several of them, had weighed in since late january,
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saying they hoped the result would be different. right after gsa made that announcement, they started pressuring, even before that, there in specter general, their internal watchdog agency within gsa, to conduct their own investigation. my thinking was, you fast-forward five months, late march -- it's try to keep tabs on that. the gsaearned was that inspector general the government accountability office separately have decided to investigate these matters. here: i guess the concern is, given that trump oversees the gsa, he is effectively hotel landlord and tenant in this case, if we can distill this down to make it simple. lawsdo we know about the that govern this kind of situation? do we have examples of where these laws have been enforced? sam: a lot of this is first
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impression stop. it involves parts of the u.s. constitution, what is called the foreign emoluments clause. it really comes into play in court cases, which is when foreign leaders give gifts or presence to elected u.s. officials. that is what some of the critics had claimed, where some of these least violations came in. it also states on the least that the owners of the hotel cannot receive gifts or presence -- presents because of this place. what skeptics have claimed is that this needs to be looked at further. wasinternal gsa review decided by a contracting officer. we do not know anything about the background, in terms of who advised him or whether or not they are acting administrator.
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a politically appointed position was involved in that decision. the discussion is we need independent watchdog agencies to take a look. gao, the government , from thelity office person involved in bloomberg government, learned that in june, just after the gsa decision, fairly quietly, a couple of democratic congressman, peter defazio and tim johnson, who have been active in expressing their concerns, wrote to the gao, the head of the gao, jane did aro -- gene dodaro, saying you need to look at the leasing program, which is how the trump administration -- i am sorry, have a trump organization created the least. julia: i guess the white house t,"ponse would be "witch hun
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given the democrats, but it is an interesting angle. people wonder whether there will be more pressure on the ethics angle in order to leverage that against the president. i know we are going to come back and talk about this, that we have to wrap it up there. great to get your insight. fromeporter for joining us the washington bureau. i recommend you read the article, because it is very interesting. the manager is urging u.s. president donald trump to pardon michael milken, who pleaded guilty to securities fraud when he was known as the junk-bond king. ♪
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julia: this is bloomberg markets balance of power. -- in 1990, milliken was one of the most powerful people on wall street when he pleaded guilty to securities fraud and spent 22 months in
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prison. now, he is a philanthropist who runs a prominent annual conference. sent a plea to donald trump asking him to pardon milken. --are joined by the ceo of by the ceo. of all the things you could have asked president trump, why this? >> of all the different areas i would have liked to address to him if i got the opportunity -- tax reform and they need to maybe change his temperament and lower the tweet volume, and those types of things -- those are things people say to him all the time. most of the policy things are in the mainstream conservative come fromwhich i ideologically. this is not something he is hearing about and i think it is important. julia: people who are looking at this go, hang on a second. this guy broke the law. he was sentenced to 10 years. he only served 22 months. why would you choose this as a subject?
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do not know that anyone would say he broke the law who studied the subject and could easily quantify what laws he broke. i do not believe the judge knew what laws he broke. milken and it up pleading guilty when they extorted and leveraged his brothers against him. he knew they were going to go after his brother. that is when he ended up pleading guilty. ultimately, most people you bring up, and the public sentiment, believe he went to jail for insider trading. he certainly did not. most people believe he created this high-yield bond that ripped off a lot of people. he created a capital structure that enhanced corporate america a possibly s -- corporate america's ability. we see tesla utilizing it. he should get credit, not condemnation. onia: the jury may be out
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whether he is innocent or guilty, so i will not push you further on that. what is the incentive for president trump to go, this is a high profile banker, i am going to pardon him. his supporters would have their head in their hands, wouldn't they? would.i am not sure they i think the sheriff joe pardon will go down as the most controversial pardon of his tenure. i am not asking president trump to do this for political benefit to him. i am completely agnostic about what is in it for president trump. julia: why the timing? david: i think this week there is a focus on what the purpose of a pardon is. maybe the country needs to have a greater conversation. we think back to president ford pardoning president nixon. ,n terms of the symbolic value to purge ourselves from that in my mind egregious prosecutorial abuses of the 1980's, the tremendous effect and
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reinforcement behind our capital markets -- we no longer want to tolerate these rod and envy-driven -- these broad and class envy-driven prosecutions. julia: you have never met milken. david: i gain nothing from doing this. i truly believe this. i admit i am an obsessive person. i got assessed with this topic. i read every book. i did not enter the subject and my study of it with a preset position that michael milken was innocent. as and when further into it, i will tell you the people that most persuaded me. there were real abuses that went on. those with prosecutors that brought the case. i think former mayor giuliani, who i hold in very high regard, who is an advocate of the pardon of michael milken, who he prosecuted -- and the prosecutor who worked the case, jon ferro, admits to all sorts of issues that went on.
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i believe that fundamentally what is in it for me is that i truly want us to get past the class and the rhetoric, the demonization for symbolic value, and move to a system based on enterprise and justice. julia: you said it was class envy run amok during that hopeful. i can't help feeling that a pardon would incite those flames. david: that very well could happen. not believeis, i do -- this is not a partisan issue. to my knowledge, michael milken is in a different political and i am. over the years -- president clinton was lobbied hard to pardon michael milken, primarily from left wing and centrist democrats. would dividek this the country on partisan lines or ideological lines. i think this should be done because it is the right thing to do. julia: we will wait and see. have you had any response from the president? david: i have not. i do expect one. julia: great to have you on the show.
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the founder and ceo of the bahnsen group. sign up for our politics newsletter at bloomberg.com and you can get the latest in your inbox every day. "play,"ng to hit because i want to talk to you about bloomberg go. brian moynihan sits down with erik schatzker. that is not to miss. and you can catch all our interviews on the bloomberg with the function tv , which i am showing you there. that is the conference room at ahead of donald trump's speech today on tax reform. tax reform discussed on the program.
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scarlet: is 2:00 p.m. in new york. i'm scarlet fu. julia: i'm julia chatterley. welcome to "bloomberg markets."
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♪ we are live in bloomberg world headquarters in new york. here are the top stories we are covering. president trump wants to take on the u.s. tax system. he will deliver remarks this hour, likely touting cuts for the middle class and small businesses. what can actually get done, though an illinois representative ways in. returns, making landfall the second time in louisiana as rain and flooding recounted on the region. we speak to a man who puts the $100 million. and warren buffett says it is harder to find bargains. much more that interview, just ahead. we begin with bloomberg's first word news with

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