tv Bloomberg Markets The Trump Economy Bloomberg September 5, 2017 1:00pm-2:00pm EDT
>> i'm julie chatterley in for david gura. welcome to bloomberg markets, a balance of power with a focus on the intersection of politics and the economy. here are the top stories. the clock is ticking for .ongress to act on daca jeff sessions announced the end of the obama era of protections for around one million undocumented immigrants. protests sparked. chris crowe back will make the case for why the program should end immediately. meanwhile, washington contending with the escalating threat from north korea. russia is joining china in rejecting sanctions off me north korea's powerful you nuclear test yet. ♪ julia: after months of speculation and mix messages, jeff sessions made it official. the trump administration is ending daca.
to have a lawful system of immigration that serves the national interest, we cannot admit everyone who would like to come here. it is just that simple. julia: not that simple. the president plans to delay the program for six months in the hope that congress can find an alternate -- a more permanent solution. there are around 800,000 people protected from deportation under daca. joining me to discuss, bloomberg's chief washington sport -- chief washington whoespondent kevin cirilli is live at the capital. and in the studio, marty shanker. great to have you on. kevin, let me come to you. it was always going to be about the framing in terms of jeff sections talking about the legality, president trump coming in with his ax -- his explanation. did he do enough to say, we do not want this program to end? kevin: it depends on who you ask.
denouncing this. just in the last two bank powers, javier palomar is of the has stepped down from that diversity panel. republicans are giving a somewhat tepid response. paul ryan saying this original piece of daca was something president obama had put forward that had no constitutional standing. now, the timeline and clock starts on the six months that the president has said congress has to take this on. later this on, -- later on, senators will speak here on capitol hill about their more moderate approach to an alternative to daca which would grant dreamers who have been here more than one year the ability to become u.s. citizens, provided they join the military service or other volunteer avenues. on the foot side, when we take lipside, silicon
valley has reacted. i want to read what brad smith has said. brad smith is the president and chief legal officer of microsoft. he said "congress should adopt legislation on daca before it tries to adopt a tax reform bill." president trump will lead with the big six at the white house. facebook's mark zuckerberg says he is against any repealing of daca. beia: i think there will many more ceos against this. president trump tweeting, congress, get ready to do your job. can congress pass something in six months? they have a history of failures where immigration policy is concerned. marty: there have been so many bipartisan efforts, some led by senator mccain who criticized the president's action today. they have been unsuccessful.
everybody wants to be compassionate. when it gets down to it, this is a matter of leadership in congress. it has been absent on immigration. they have not been able to pass any immigration reform in the last decade. it is questionable in this partisan environment whether they can do it again. it will be very difficult given everything else they have to do. that is the point, prioritization of everything they have to do. whether it is a spending bill -- bill, a death rays, will this a priority over tax reform? marty: the trump administration has said their priorities in terms of enforcement will not be changed. their deportation efforts will be on criminals and gang members. whether if you are a dreamer, is that going to make you feel comfortable and safe? i doubt it. videos of people being ripped out of their homes and put on buses for deportation will certainly get congress to act. i don't even think that will happen.
it is questionable whether they will do anything. julia: what kind of damage will the gop face if this fails? kevin: i think when you look at this through the political lens, it is tough to look at through -- i look at this through the political lens. more than 8000 dreamers will be affected. we are already starting to see 2020 reverberation through this. former vice president joe biden tweeting out that this is "cruel , and a senator saying dreamers have made contributions to the united states. democrats are speaking out quickly against this policy. conductors -- of contenders are pushing through. julia: let's talk about this week. willuggestion is that we see a release package voted for
hurricane harvey on wednesday in the house. that will go to the senate. they will attach some time -- some type of debt ceiling and send it back to the house. is that what we are expecting? marty: that is probable. if they do do that, it will bring it back to the house. the house could then meet some resistance to that. they could strip out the debt ceiling, that point, and still pass harvey. it is a delicate balance that the leadership has to strike here. i think it is possible you could get debt limit and harvey aid in one package and on the president's desk. it will be difficult. julia: yes or no, kevin, do you think they will manage it by the end of the week? nope. nope -- kevin: i think there will be a december showdown, just in time for the holidays. we will have a lot to do around the holidays. julia: what about if they manage
to do this, does that undermine the political support for a tax reform that is not deficit neutral? marty: i think it makes it more problematic. there are many things that this congress has to do, a spending a highax reform being priority, and i'll of that happening all at once is going to be difficult. julia: great to get your insight. kevin cirilli and marty shanker, thank you for joining us. let's get a check where markets stand. we have a selloff. the dow, s&p 500, are down more than 1%. near session lows. the dow had been on pace for its worst basins the middle of may. investors react inc. bearish lee -- reacting bearishly. north korea claimed that they tested a hydrogen bomb. the u.s. in turn is calling for increased sanctions. ifth korea coming out saying
sanctions are increase, they could come out with a response of their own. lots of back-and-forth. if we happen to the bloomberg and take a look at an intraday chart of the dow, this is g #btv 17 02. we see the big drop down today. we see a light lower on north korea's response. it could be that potential for escalation. that thisteresting is is the third incident with north over in terms of trading the last month or so. initially back in august, we see this is the worst day that the dow has had over the last few weeks. 1.25%.out not recovering. recovering in the days after, but not the entire decline. lastly, when a missile went over only, the dow opened lower to finish higher. trading higher around this time. recovering the last a little bit, but now on these increased tensions, we are down.
another pressure, irma. travelers, one of the biggest drags on the dow trading lower the reinsurance. this is another pressure as these losses could be a negative for the insurance base. finally, one bright spot due to irma, if we take a look at home depot, lowe's, and lumbar liquidators, we are seeing a rally. which juice getting a bid on the threat from irma. who knew? julia: tensions escalating after north korea's most powerful nuclear test yet. why china's response could be adding fuel to the fire. from new york, this is bloomberg. ♪
♪ i'm julia chatterley. let's bring you up to speed on the bloomberg first word news with taylor riggs. hasor: hurricane irma picked up steam as it approaches the northeast caribbean on a path to the u.s.. florida is bracing for landfall over the weekend. upidents prepared to board their homes. irma is a category five storms with 100 75 miles an hour winds. a hurricane warning has been issued for a number of violence. rico,s including puerto in the u.s. and british virgin islands. president trump is losing another white house aide. this one could be the most damaging. he schiller's is leaving his job as director of oval office operations. it is what of his closest confidence outside his family. the resident is said to be crushed -- president is said to be crushed.
of the tops universities in the world are out today. the list from the times higher --cation has u.k.'s schools has u.k.'s schools in the top spots. there is a tie for third with california institute of technology in sanford, m.i.t. rounds out the top five. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm taylor riggs. this is bloomberg. julia? thanks so much. the war of words between north korea and the united states is continuing. north korea news agency is responding to the united states calling for new sanctions against it, saying the u.s. is a he myth aggressive who is being big -- who is begging for war. president trump saying, i am allowing south korea and japan to increase military equipment from the red states. earlier today, we are tied for
-- the only way to handle north korea is to contain it. numbermilitary options one would be effective but not all encompassing. number two, the day after would be looking at a situation on the korean peninsula with hundreds of thousands of people dead. it may be that we finally got to swallow a bit of a pill and a knowledge their nuclear power and try to contain them, not try to remove that capability from korea. file: joining me is brian -- fowler, great to have you in new york. what do you think containing looks like and do you think there is a recognition from the u.s. administration to -- this perhaps is a good solution? to sayit is a hard thing that the ministration recognizes that. in asia, the country that
neighbors north korea, definitely has a sense of that. china, russia, japan, south korea, all would prefer a calm response to this. and something that leaves the stability and avoids any kind of altercation. peace to war,om it would be devastating for that part of the world. we're talking about containment, it is not just the united states alone. south korea, japan, all of these countries have interest in dealing with this. i look at donald trump's behavior and he was accusing south korea of impeachment, he suggested he wanted to end a treaty, what is going on here? they should be pulling together and not dividing. that is exactly right. some are worried that donald trump is playing into the hands of north korea by stirring things up, by threatening south korea with killing a trade agreement between the u.s. and south korea.
he has criticized china over and over on china's response. i think there is a worry that by not stepping back, is merely doing what north korea wants, which is to gain a stronger leverage in asia by dividing the u.s. from its allies. julia: president trump suggested he would and trade with anyone that trades with north korea. there were all sorts of social media coverage. a whole list of names of countries that would not be trading with. it is simply not feasible. brian: it is huge. there is a sense that some in the administration see this as a business opportunity. there is a lot of talk of military buildup. and took president new office a few months ago, vowing to engage north korea. he has turned a much harder stance. he is talking about putting stronger warheads on missiles. to talk about
putting strategic bombers from the u.s. in south korea for the some in his administration have gone further and talked about developing a nuclear submarine for the first time. there is a lot of potential buildup. julia: there is a financial benefit as we pointed out, willd trump tweeting they be selling more military equipment to south korea and japan. that will be something to tackle the deficit. do you think there is a redline for china? we keep coming back to this point. we know china is afraid of regime collapse, particularly for the border they share. that is an issue. russia as well, if we are talking about oil. sanctions will be a problem. that is right. china wants stability for two reasons. it does not want millions of desperate refugees too poor or for -- to pour over the border. it also does not want to see a
confirmation that might result in unification of under south korea. definitely --is in russia, for similar reasons. whya: we were talking about we have seen this step up in the nuclear tests from north korea. and we were discussing this being a respect -- about respect. is time running out if they are being sanctioned and the restrictions this is putting on the economy? he has a narrowing window to do these things. key thingsof the about all this is the pace of escalation, which has been unprecedented. as saturday,early or before saturday, another big anniversary coming up. we may see more tests come up. i think there is a sense that can jump in his racing against time. julia: brian fowler, thank you for joining us. the looming debt ceiling debate in washington will -- in
♪ i'm julia chatterley. i want to give you a look at what is going on in terms of the u.s. equity markets. we have equities under pressure. a lot of discussion about the and therean tensions impacts of hurricane irma weighing on investors. we have the nasdaq off 1.2%. the tech stocks weakening in the session. the s&p 500 down by 1%. one -- downown by by 2%. industrials, just two sectors managing to hold in the green. that is utilities and energy up from 2/10 of 1%. republicans in the senate are considering adding the debt
extension to hurricane relief, expected to move this week in the house. that is according to two people familiar with the discussions. joining me from london to discuss the implications of what the faulting on the nation's debt will mean is sara, senior vice president with moody's investors. and you hear me -- can you hear me? no? sara, can you hear me? i think we will have to work on that and see whether we can get hold of heart or let's move on and i would give you a look at what is going on with other markets. we see the dollar index lower by 2/10 of 1%. despite the nervousness we are seeing in the equity markets, we see the dollar weaker. hold in is managing to positive territory. we have sterling higher by 6/10 of 1%. in terms ofxed bag
risk sentiment. we have energy markets managing to see gains across the board. wti trading above. let's move on. tax reform continuing to take shape. another issue that the administration and congress has to deal with. they are set to release a final version of their reform plan later this month on national gary gohn says -- cohn says it is a once-in-a-lifetime opportunity. >> tax reform that is substantially simplified, the code that increased incentives for investment in equipment, i ,hink that could encourage bringing back, in a permanent
way, that could have meaningful benefit for the economy. but, i do not see that developing in the proposals that are under discussion. i think there is a risk that some of the proposals, like the emphasis on territorial taxation without a global minimum would operate primarily to encourage more businesses to do more things abroad, rather than in the united states. wouldax reform concentrate on the various actresses, whether it is earnings, stripping, or transfer pricing, that enable companies to avoid taxes by locating profits abroad. havens.cular, in tax that is where we should be cooperating with our trading partners, so that mobile companies can't picked one country against another. when you are in a race to the
bottom, the right thing to do is to try to change the rules. the trump strategy is to say we are in a race to the bottom and then try to win. >> larry, can i and for that you think the second quarter gdp of 3% is not good enough and not sustainable? 3% is pretty good. >> sure. knows thaterious gdp with lagsnes of six months to a year. nothing that is happening is sensibly, yet, attributable to the actions that are taken by the trump administration. i was careful to say throughout that i was not predicting, as some who do not like the policies were, that we would go rapidly into recession. i do not think that gdp growth
figure is any kind of referendum on the president's policies. i think a lot of it has to do with catch up from a slow first quarter for a variety of technical reasons. there is nothing in the data that is suggesting to any serious observer that 3% growth on a sustained basis is in the cards over the next five to 10 years. >> going back to 1986 tax reform, -- president'sxt, the decision to end daca, sparking protests. we will be discussing. from new york, this is bloomberg. ♪ . .
we balanced off the lows, pretty much under pressure throughout the session. whether it's north korea or a further hurricane potentially damaging the gulf of mexico, as you can see the tech stocks in the underperformers. the nasdaq down from 1.4%, the s&p 500 also down by 1%. with bring you up to speed taylor riggs. 03 is blaming the united states for the growing nuclear standoff between the two countries. to theorea's ambassador u.n. says the u.s. is a nuclear criminal. >> the u.s. imposed nuclear threats and blackmail for more than half a century against my clinicalith ceaseless and military pressure and sanctions. taylor: the ambassadors is north korea's nuclear program is strictly for self-defense. a scare for a japan airlines plane down, he reported it and
bird strike caused flames to shoot out one of the engines after takeoff, and it was caught on camera. the plane made a safe emergency landing. 230 three passengers and 15 crew members were on board. economick., uncertainty is reducing demand. the supers -- the service sector grew at the slowest pace in almost a year. the slowdown was most evident in hotels, restaurants, and other consumer safety businesses. top democrats are slamming president trump and his decision to end the dreamer program. nancy pelosi minced no words on twitter, writing trump cowardice is on full display today. this cruelty must not stand. charles schumer said the human and economic toll will be far-reaching. to preventall we can potus order from becoming
reality. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. senaterepublicans in the are considering adding the debt limit extension to a hurricane relief will expected to move in the house this week. it's according to two people familiar with the discussions. joining me from london to discuss the implications of what default nominations debt could mean is sarah carlson with moody's investors service us. now?i got you here with me ms. carlson: you do indeed. julia: do you think this will be like other occasions where we've seen some degree of workmanship and they do damage to come up with something of spending bill? ms. carlson: we certainly think that as has happened every other time since the debt ceiling was instituted in 1917, that the debt limit will be raised. the question now is how noisy
the process is. in recent years, it has generally been a noisy. the question now is whether the circumstances around hurricane relief change that. from a credit perspective and a ratings perspective, that political noise or the absence thereof is not particularly relative -- relevant. what's more important that the debt ceiling get raised. julia: let's say they struggle. europes of the way approaches the aaa rating -- of the moment, united on stable. what matters? is it maintaining debt payments and interest payments that are the critical things for you in terms of rating? ms. carlson: with regards to this very narrow issue, yes. making interest payments is extremely important. if interest payments were not be made on time, there would be rating consequences for that.
we published a report earlier today giving a little more detail on what that could mean. however, the broader drivers of the u.s. rating really have more to do about the debt trajectory and the ability of the u.s. to bring down debt in a sustainable way and ultimately, that goes to either some of the long-term spending commitments the u.s. has made, where the revenue to finance them. julia: that's one of the big criticisms of the administration , not just this one, but , not being able to tackle entitlement reform. from what you can see from this u.s. administration, do you think they recognize the importance of tackling long-term debt sustainability and the deficit? on the tax out reform plan whether it's going to be deficit neutral or not. the hope is it's going to allow them not to be. ms. carlson: we have expressed skepticism about the growth, the kind of growth numbers that the administration has discussed.
it's not politically popular in either party. this is something we saw during the election campaign to try to address some of the entitlement issues. ultimately, the question is either something gives on the spending front, or something gives on the revenues to finance that spending. one of the things as far as expenditures goes that we know is going to rise going forward is interest expenditures on the debt. the trajectory of that is expected to rise pretty steadily over the coming years, which then creates further restrain on other types of spending or for the demands for revenue to finance it. do you think the whole sector needs to change with regards to debt ceiling? ownhe debt ceiling of their creation, and we have to battle periodically for no real reason other than from all the risks you just mentioned. doesn't undermine the
credibility the institution framework to continue to come back to these things? these things filter into your analysis when you're looking at a country -- economic strength, institutional strength, physical strength. ms. carlson: that's absolutely right. the debt ceiling is not one of the stronger institutional features of the u.s. as a sovereign credit. the debt ceiling is a fiscal rule is really unusual. lots of countries around the world have fiscal rules. there are two things that are quite unusual about the debt ceiling. nominatedt it's been in a nominal amounts, and second that it is so legally binding that can lead to these legislators showdowns. those two attributes are not something you generally see with regards to fiscal rules when you look around the world, i think over 80 countries have a fiscal rule at this point. away with itan get
kansas secretary of state. advocate for tough immigration laws. he said of the decision were mine, i would have ended it immediately. if it's illegal, you don't keep violating the law for another six months. he joins us now from topeka, kansas. great to have you on the show. explain. to go to the point that jeff sessions said, are you lacking compassion by suggesting that should end immediately? >> as a lawyer, is an executive -- is it illegal for the executive branch to give his amnesty? federal courts already determined that. legally, it has to end. one could argue that the administration is showing compassion by saying even though
it's illegal, we're going to continue doing it for six months and give a legal protection that technically, we don't have the authority to give through executive action for another six months. either way, it has to end, the lawsuit was going to be brought by nine states if the executive branch of the federal government didn't act. julia: that's why i was asking if you and compassion by suggesting it should end immediately. we can just focus on the legality purely when these are children the for all intensive purposes are american. they had grown up here and have been educated here. i think people would look at this and go you are not being fair. to get the facts out, first of all. the average age of a daca alien is 25 years old. they are not children. they are individuals who claim to enter the united states before the age of 16, but until today, you could be 36 years old and still claim access to dock
amnesty. i do have compassion. my compassion -- the bottom line is their jobs and people are competing for those jobs i have compassion for the legal aliens who aren't able to get these jobs because they are competing with is the illegal population in the u.s. citizens. if you have a high school diploma and you are a u.s. citizen and you go into the job market with a high school diploma, you're on employment the is 17% and underemployment rate is 31%, because you can't find full-time work. it's a tough job market, and i would say look, as a country, we should look after our own citizens and aliens who come here legally first before we start handing access to those jobs to people who are here legally. congress can think try this in law -- enshrined this in law? >> is going to be an uphill climb. since 2001, there's been more than 24 attempts at passing the
dream act, and all of them have failed. one can close in 2010 and got defeated by a few votes in the senate. possible, but if the past is any guide, it's going to be hard for them to pass the dream act in six months. it certainly possible. julia: if it doesn't get past in six months, these 800,000 individuals literally should be shown the exit? >> the way the justice department announced the phaseout is people who are about to have -- is a two-year deferred action grant they were getting from the executive branch. for the next six months, people whose deferred action status is about to expire can re-up. there will be hunched of thousands who still have more than a year left on their deferred action. it's not like all hundred thousand instantly -- 900,000
instantly lose their status. six months from now, it faces out over a two-year period. julia: for those who feel very passionately about this, let's say congress does manage to pass this legislation and the building hits the president's desk. would you be happy to see president trump sign off on that because it's legal? julia: i'm not a fan of amnesty. every time we have had amnesty in the past, it causes a surge of additional illegal immigration as some will come forward claiming they were eligible for the embassy and they have been here for years when they weren't. that's what happened in 1986. others will just come across the border and wait for the next amnesty. we know empirically that anytime we granted amnesty, it's bad for the country and it hurts law enforcement on the border. generally, i'm opposed to amnesty. julia: you don't want to see this kind of integration, even if they are consuming.
many ceos are saying these people are beneficial to the economy. >> absolutely. let them go home and come in legally, the right way, like hundreds of thousand of their countrymen are trying to do, waiting in line patiently in paying fees and trying to come in the right way. shouldn't give amnesty because it's a slap in the face to all the people who are doing it legally. it's one of the most important problems with amnesty. in addition to causing a surgeon additional illegal immigration. that's the main reason why i oppose amnesty. , two: if this was a child years old, and didn't have a choice to come to america and has grown up here and has been educated here, you would send that person home to a country that recognize and have never really been to, even if it's a grown-up child, you would send them home and make them get in line? 2-year-oldly, that was brought in with his or her parents, illegally.
so really, the whole family should be removed back to their country of origin. they've been here in the united .tates for perhaps 20 years they have benefited from the american welfare state, they have enjoyed jobs that americans citizens didn't get to, and yes, they should go home. if they want to come back legally, they should do that. julia: do you think president drug will benefit as a result of this? even argue he is playing to a base that shares your view is a far as illegal immigration, even these specific case, the dreamers are concerned. many other people find this abhorrent. >> i think so. he benefited in the 2016 election, he took a lawn order position on illegal immigration. ,nd the american public including a large number of democrats and independent voters and blue-collar voters in the rust belt states said yes, that's what we want. we want to see immigration laws enforced. daca duringto end
the campaign. taking a strong law and order .osition helped him win 2016 whether it helps them on reelection in 2020 remains to be seen. does, becauseit the american public is in favor of enforcing our immigration laws and. julia: we love the dreamers, that was a quote from him last week. kris kobach, kansas secretary of state. stocks you need to watch today, carnival cruise lines is down the most since september as dryships stop -- cruise ships drop as the threat of more weather. >> we were chronicling the changes in the market as hurricane harvey hit taxes and now we are looking at a category five hurricane erma sweet -- irma squeezing into florida. ,'m looking at royal caribbean
but this is carnival in norwegian cruise lines getting a pretty big drop, royal caribbean inht now is down the most several months. yet to get back to september 2016, already across the board. morgan stanley also had a note this morning that one of their analysts said there's not only waning demand from the weather side, but also we've seen a summer that's been marked by terrorist attacks around the world in general travel hesitance on behalf of folks that largely, in western countries, go on cruises. julia: what about the impact on margins? promotionalg activity and cheapening prices on some of these offerings to try and get people in the door? oliver: when you think about cruise lines, compared to a complex bank, is a fairly straightforward supply and demand dynamics. pricing is a big part of it. we looked at caribbean in general and we have a great chart. this gives an idea of where
their businesses. it's in these regions that are going to be targeted. with regards to prices, one of the things that are analysts are watching is more about the price of oil. this is bouncing back and forth for the better part of the year, that's what about some static against the nature on the margins. at the same time, this is a company that's pretty highly valued. i'm looking at the bloomberg on equity rally at -- relative valuation. compared to the historical average, world caribbean is actually trading pretty highly valued. we are looking at historical range on the metrics that are below where it is right now. these blue dots are showing that the stock is somewhat highly compared to its peers. so perhaps some profit taking, but some good rally for the stock. inia: oliver renick speech -- speaking about the cruise industry. their signs the robert mueller's investigation into election
julia: this is "bloomberg markets," balance of power. i'm julia chatterley. the probe into russian interference in the election could start to heat up. congressional committees may pick up the pace as they tighten their focus on president trump's family members and campaign associates. bannon andes steve the former white house chief of staff, reince priebus. joining us is billy house.
seeing, of what we are if we're talking about a more aggressive phase in terms of this investigation. as members of congress returned today, we are expecting a deceleration -- an acceleration of interviews. not just from special counsel mueller's investigation, but also three committees conducting their own investigations. julia: is not just about getting more information. you suggested this is about magnifying conflict. they actually want to appear to be playing people off, and then someone breaks and provides them with information they don't already have. is this what we are looking at? billy: that is some of the perceived strategy. and who will break and who fears who will break is part of the game.
but as part of that is the confusion over agreements between one legal team with one committee, and another committee's efforts to get that same information, and whether that previous agreement would allow that. it's kind of a real excuse when you have this many ongoing investigations, talking to some of the same people. julia: we suggest that we may see the return of james comey as well to testify on capitol hill. what more can you tell us there? come after would reports that the president and some associates had created a memo of their own for reasoning behind firing him before it was intercepted and scrapped for another memo. more insight on discussions between the former fbi director and the president himself. or other aspects of that firing. which of course, comes under the rubric of obstruction is on
people. whether or not the president was obstructing. julia: what do we know about paul manafort? we got the suggestion from politico in the back end of august that they are now investigating his financial transactions. if we're looking for some kind of weakness intentionally, is that a potential hotspot? billy: it could be. what that involves is whether or not russia or other entities trying to use financial leverage over a gentleman who was the trump campaign manager frigate six months. and whether or not aspects of that financial situations may have opened up some doors for influence or collusion with the trump campaign. julia: at the moment, there's a great deal of speculation, the investigation is going on very much behind closed doors. ,t the end of this month mueller is going to present his
expenditures to the justice department, and they are going to make some of that information publicly available. is that right? that will give us a sense of the scope. billy: that's absolutely right, and it could open up a can of worms as some house republicans, including many on the house judiciary committee which oversees the justice department, has been critical of mueller investigation that may go beyond what they believe are the parameters. a look at his budget -- if it doesn't commit what you think -- what they think he has been tasked to do, it could create trouble. julia: congressional reporter billy house, thanks for chatting to us. coming up on "bloomberg markets," daniel arbess joining us to discuss his views it from new york. this is bloomberg. ♪
♪ scarlet: we live in bloomberg world headquarters in new york. here the top stories we are covering from around the world on the bloomberg. stocks a major indexes in the red right now, by better than 1%. off a little, with the dow falling more than 200 points. treasuries rallied the most in months as tensions with north korea amount and another atlantic hurricane threatens to make landfall. in politics, the trump administration has officially leavingdaca, immigrants in limbo. google, and jpmorgan coming against that decision. steve cohen seems to be urging ever closer to launching a hedge fund. we have more on this bloomberg's move -- bloomberg's