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tv   Bloomberg Markets Balance of Power  Bloomberg  October 10, 2017 1:00pm-2:00pm EDT

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of politics and the economy. david: here the top stories we're watching at this hour. the moment of truth for catalonia and spain. we will hear from catalonia's president. what it will meet for spain, europe, and the global markets. starbucks ceo kevin johnson joins us for exquisite interview live from seattle. what he has to say about the fascinating path from the tech world to one of america's best-known brands and future retail. this tax reform already in danger of dying? closest allies's are tting more worriedbout e esident's ability to deliver. ♪ david: we have been looking at live pictures this afternoon of parcel o barcelona, where huge emont will- puigd
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deliver remarks. they have been highly anticipated remarks from the leader of that region. in the meantime, bloomberg technology is in seattle this week, broadcasting live from the geek wire summit. my colleague, emily chang, is on-site there now with a special guest. emily: hi, david. thank you so much. we are here with kevin johnson, ceo of starbucks. thank you so much for joining us. i interviewed in your private prior life as a tech company ceo. how's a tech coming guy going to change coffee? kevin: they certainly have two different business models, but they have a lot in common. both tech industry and coffee have to innovate to stay relevant in our sectors. emily: what does that mean? kevin: when you thick about starbucks innovation, we have innovation that starts with all things coffee. if you get to artistry of the street and have a chance to
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experience some of the new coffees whether it's metro cold whiskey agedol coffee, we innovate in our store design and mobile connection with our customers. we innovate around a partner benefits and our social impact agenda. are five major categories of innovation that drive starbucks. emily: how is how i get my coffee going to be different in five years? kevin: as we continue to invest in elevating the experience that we create in our stores around a wide range of beverages, much of that is focusing on the needs date of connection and convenience. i know a lot of times you are in a hurry and you want to use mobile order pay for your coffee and have it ready when you arrive. maybe other times you want to go with starbucks with your family and share your beverages and have a conversation with people. we will continue build stores and elevate that experience. we will continue to bring new beverages and food items to your
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store. emily: what you say to people who order i had have to wait in line? have lamented in technology and stores called the digital order manager. when some of the orders and when their beverage and food is ready, they get a digital notification coming back to them. we are doing much more to communicate with customers when their order is ready. emily: what's the difference between you and howard schultz and what is it like to take over for a larger-than-life founder? kevin: certainly howard is an iconic merchant and founder. in many ways, he has got years of intuition. i would characterize howard as the much more spontaneous, intuitive sort of leader. with my background in tech and digital, i much more thinking about using data to help inform me and decisions and be more intentional about what we do. at the end of the day, we work together for a lontime. i valuhicreativi a 20. i think i bring unique things to
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the table that will help us as a company as we make this transition into the future. emily: starbucks has taken a stand on political and social issues. it plans to hire refugees for example. you got pushback from conservative shareholders over that. how do you navigate that and how do you plan on continuing? kevin: oftentimes people perhaps misinterpret things that we are doing as a clinical statement. for example, we have an entire pillar on a social impact agenda around opportunity. that started with our duty to hire veterans. we said we would hire 10,000 veterans or spouses. we have exceeded that number and we have up that commitment to 20,000 by the year 2020. we identified the fact that there's over 6 million young people ages 16 to 24 who are not in school and not at work. we started opportunity use, where we now first committed to hire 40,000 of these young people. we are now hiring 100,000 of them. the refugee portion is a
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consistent with that. that was our first global position with that and we felt like we can play a role in helping those communities and give those people jobs and opportunities. this is court of who we are about trading opportunities for people and not about creating a clinical statement. emily: do you get any pushback from the board on this? kevin: the board is heavily involved in all this. clearly the things that we do, we work to make sure that they are consistent with our mission. they are not politically driven things that we are trying to do. the fact is that we hire military veterans and the have made our company better. the young people we have hired from opportunity youth have been fantastic partners in our stores. they make our company better. much of this is quarter who we are and how we get the talent we need to create that experience in our stores. emily: you are also getting pushed back over your paid leave policy with 18 weeks for moms at corporate headquarters in six weeks in the stores. how do you reconcile that when
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employees on the front lines are not getting the same benefits? kevin: the fact is we offer best in class parental leave and our stores compared to anyone else in the industry. what we do is every year, we take feedback from our partners on what is important to them. so far, what's been important to them is the increase in wage. we have made significant increases in wage for those partners in the store. we have invested over 250 million dollars for wage increases for partners in the store and try to do the right thing for them. this is a journey and we continue to listen to partners and try to do what we believe is right to help them in their unique situation. emily: you announced the closure avana maltz and the future of retail is changing. everyone's at home shopping on amazon. what does that mean for starbucks? kevin: the good news is that we our analyst have been a consumer destination. that is one of the key
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ingredients and retail going forward. we continue to innovate in the way that customers want to come visit versus us try to intercept traffic and him all. -- in a mall. over 2000 or starbucks stores and a time when there is record closures of stores by other retailers. postinges are piou higher a you've used in prior generations. our ability to continue to innovate and create a great retail experience in our stores and our ability to expand that experience to the brick-and-mortar and the digital experience are the two c ke ingredients that will power us forward into the future. emily: markets around the world are becoming saturated. they have got their coffee now. it's putting pressure on accelerating your expansion of companies and in cotries like china. what's the plan there? how much faster can you go? kevin: china is the second largest and fastest-growing market. we are at 2000 stores in china and we are going to build more
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than 500 new stores are your for the next five years.. china is the biggest growth opportunity before us. the u.s. will continue to grow. the u.s. and china are the two growth entities fir for for starbucks. emily: starbucks has never really figured out food. how do you get there? kevin: i would say we have figured out portions of food and we continue to evolve. five years ago, we acquired a in ourbaked goods and ar bakery case and breakfast challenges. since we acquired them and acquired a frozen supply changed d, our food sales have grown from 16% to 21%. we are innovating around the lunch day march. we have a new lunch menu experience called mercado in chicago and seattle.
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we are seeing good reception from our customers. it is a journey and we will continue to elevate the quality of our food both in the morning and afternoon parts. emily: kevin johnson, starbucks ceo, great to have you on bloomberg. back to you. shery: think you so much for that. -- thank you so much for that. coming up, catalonia facing the moment of truth. we will hear from the catalan president any moment now. the speech was delayed by about an hour. we heard from the president that he was speaking to some international context. we will bring you that speech live when it happens. this is bloomberg. ♪
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shery: welcome back. this is "bloomberg markets: balance of power." i'm shery ahn. david: on david gura.
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-- i'm david gura. we are waiting for the speech from catalonia's president. we will bring you those remarks live as soon as they begin. in the meantime, we will check in on the bloomberg first word news. mark crumpton has that. mark: the trump administration has proposed repealing the obama administration's clean power plant. that's a sweeping initiative for cutting that greenhouse gas omissions. it will prolong uncertainty on how much utilities must do to cut emissions generated by burning fossil fuels. the initiative never actually took effect because the u.s. supreme court put it on hold in february of 2016. president has escalated his feud with tennessee republican senator bob corker. onwitter today, the president , "the failing new york times set little bob corker up by recording his conversation. was made to sound a fool and that is what i'm dealing with." an interview with "the times," corker said president trump
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could set the nation on a path to world war iii. police used tear gas and batons to push back protesters in paris at a demonstration over public sector job cuts and salary freezes. demonstrations were held in cities around france after the country's leading unions call for the protests against president emmanuel macron's policies, which the unions say would result in deteriorating work conditions. a japanese court has ordered the government and tokyo electric power company, the operator of a nuclear plant, to pay $4.5 million to thousands of former residence. it is the second lawsuit to hold the government accountable. the court ruled the government failed to order the utility to improve safety measures before the 2011 meltdown despite knowing as early as 2002 of a risk of a massive tsunami in the region. global news 24 hours a day powered by more than 27 journalists and analysts in over
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120 countries. i'm mark crumpton. this is bluebird. bloomberg. shery: we are now hearing the catalonia president starting to speak. let's listen in. pres. puigdemont: on the referendum on the first of october and to talk about the results of this like many ofyou, i'm so aware that today i appear before the beforef catalonia and many other peoples whose eyes are fixed on this chamber in the city now. this is a historic moment. the impact is huge. results are more far-reaching than just this country. this is not just a domestic matter asnational
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those who have neglected their responsibilit responsibility. catalonia is a matter for europe. from what i say, i don't expect to hear any insults or any reproaches. this is a serious juncture in history for us to shoulder are responsibly -- our responsibilities. there's an imperative need to scale down the tension and we need to avoid any words or gestures that exacerbate tension. everybody andk thelonia who mobilized on first and third of october and last saturday. on sunday, the demonstration to defend the unity of spain. i also wish to thank those who to not turn out for any of those demonstrations. we all have differences. we differ from another.
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there are things that we have in common and things that we do, but we are single people and wee people. whatever happens because that's the way it is for people who seek their future. we will never agree entirely among ourselves of course, but we will make progress. we often shown in the past that the only way to make progress is democracy. respect for those who don't think like us and respect for our collective aspirations, all of which require a lot of dialogue and empathy. as you can imagine, in recent days and hours, i've received many suggestions for many people suggesting what i ought to do or not to do. all such suggestions are perfectly responsible, legitimate, and unsurprising.
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i have replied whenever possible because i recognized valid grounds for what they are suggesting. i've also turn to various individuals for their opinions. they have given me very valuable input on the current situation and in the future. i want to thank them for my heart as well. however, members of parliament, what i'm going to tell you this evening is not my own personal decision. it's not just the whim. is the outcome of the first of october and the determination of the government i preside over to fulfill its commitment to have a referendum on self-determination and to analyze the subsequent events. so today, i shall be talking about the results about the first of october. if we are here, that is because on sunday the first coming
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catalonia had a referendum on self determination. conditions surrounding that referendum were extremely difficult. time in recentst european history that there has been such an electoral event of this massive police violence ueing to caste que their vote. from 8:00 in the morning to the close of the polling stations, police attack defenseless people and emergency services had to provide care for more than a hundred people. we all saw that. the whole world saw that and was horrified at the pictures of it all on its screens. the goal is not just to put some -- to prevent people utting ballot papers in ballot boxes. the intentiowas to sew intimidation and fear so that
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people will stay at home and not go and vote. for those who are politically , it backfired. over anyllion people. possible fear and they left their homes and they went and voted. we don't know how many people tried unsuccessfully to vote on thatsunday, but we do know the polling stations that were closed due to violence accounted for more than 770,000 more voters. over 2 million catalans were able to vote because they were not afraid and also because when i got to the polling station, they found there were balance -- ballot boxes, voting officials, and there was a reliable electoral roll. the police operations of preceding days and weeks seeking out the ballot papers and the
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ballot boxes were unsuccessful and the arrests of high-ranking officials and this government were ineffective, too. the phone taps and the following of people, taking down 140 websites, violating people's private correspondence, none of that was successful either. as i said, despite the efforts and the resources devoted to making this impossible, when went toa and citizens the polling stations that sunday, they found everything needed to cast their votes. i wish to pay tribute to everybody who made a contribution to that logistical and political success. fallen tears who slept in schools -- and volunteers who slept in schools and people who kept the ballot boxes at home and printing presses that printed the ballot papers and the computer experts who developed the universal census,
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the people working for the government, the people who voted yes, the people who voted no, and the people who spoil their vote. every last person who provided their own individual grain of sand to make it possible. [applause] pres. puigdemont: so thanks to all of those and i wish to especially send my affection and support to everybody who was injured and abused by the police charges. we will never forget the images of that violence by the police. we will never forget. recognized that what the central state did should bring around the degree of concern and looking for and as president of that, i have to accept that
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there are many people who are concerned right now, people suffering from english, people who are scared of what has happened and what may happen. these are people of all tendencies and idlogies. gratuitous violence and the decision by some countries to transfer the headquarters out of catalonia, i shall have to say that is to oppress the markets than something that has a real effect on our economy. but actually does have a true is theon our economy 16,000 -- 60 million catalan euros that are supposed to change the headquarters of year. those are certainly things that have darkened the horizon. people who are scared, i wish to send the message of understanding and sympathy and tranquility. the catalan government will not
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swear one iota from its commitment to progress and to cooperation. tolerance, respect for others, and the desire to negotiate our hallmarks. that is my responsibility as a president and i have to consider the 7.5 million citizens of this country. so i like to explain now where we stand and why. a lot of people are looking at us from far away, outside of catalonia today. a lot of people are listening to us and i think it's worth repeating our message. since the death of the military dictator francisco franco, catalonia as much as anyone else is as much to consulting the democracy in spain. we have also been a strong factor for modernization instability. -- and stability.
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catalonia believed the spanish constitution of 1978 could be a good starting point to guarantee itself government and its necessary progress. committed fully to the operation to get the spanish state back into the institution is of europe after four years of isolation. however, the passage of years showed us tt the new institutional setup that came out of that transition, in which catalonia have placed great hopes for higher degrees of , while thisnation turned out not to be a starting point for the powers in the state of spain but a goal. what we thought was the starting point they thought was the end of the destination. the situation began to go backwards. it was a regression.
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therefore in 2005, a very large majority and 85% of this parliament, i repeat, 85% of this parliament follow the procedures set out in the spanish constitution. i repeat, following the adopted the, statute for new autonomy and referred to the congress to the spanish parliament. this unleashed a whole wave of catalanophobia which was fostered irresponsibly by those governing spain. it was a text finally puts referendum in 2006 i was very different from that which had emerged from the catalan parliament. nonetheless it was supported by the citizens who want to vote. participation in that referendum census.of the sente
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the 1,000,800 99,000 votes in favor of that statute of autonomy. i would point out that someone hundred 45,000 fewer -- that is 145,000 fewer. the state was not content with the first cuts back. 2010, a constitutional court i'm sorry, constituted by magistrates and judges, essentially selected by the two biggest parties and spend, came up with the judgment of most unfortunate memory, which cut back the powers of catalan's authority. i would stress despite having authored the procedures set out despiteonstitution, following the constitutional and institutional setup as established, and despite having 85% of catalonia's parliament and favor, and despite the
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popular vote in favor in a legal jointlyed referendum, by the congressional and the parliament, succeeded in cutting back the text on the statutes of autonomy for catalonia to the extent that it was unrecognizable. and not supported by the catalan's. that is the text which is now the status quo. that is the text that is therced and that was outcome of catalonia's endeavor to change its legal and constitutional setup through the legal channels, i.e. you were humiliated. and that's not all. since the constitutional court's ,uling against that statute which of the people voted in favor of, the government has not only done nothing to solve the situation.
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further they have adopted an aggressive program of recent civilization from this government's viewpoint. the last seven years have been worse than the last 40. the continual whittling away of our own competencies and powers through decrees and laws and court rulings. a veryre has been harmful and very hurtful degree of scorn for our language and our culture. all this i have set up very briefly has had a very deep impact on catalonia society, so much so that many citizens, millions in fact, have reached the rational conclusion that the only way to ensure survival, not but of self-government
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overall values as a society, the only way is that catalonia should become a state. and the results of the last election to this parliament show that. something more important just happened. and parallel to the setting up of the pro-independent majority in this parliament, there has been the formation of a horizontal consensus around the notion that the future of catalonia, whatever this is, has to be decided by catalan's democratically. it should be decided through a referendum. there was a major madrid 82% ofer that said that catalan's felt that way and a server -- in a survey. to make that referdum possible, over recent years, institutions andivil society and cataloa have rolled out many initiatives.
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i have also documented no less than 18 times we have attempted a dialogue to carry out the referendum such as that carried on septembernd 2014 with an agreement between the two sides. and the two sides being able to carry out campaigns and other referendums, the results of which both through negotiation, defending their respective interests. if such a referendum was , why wasn't it possible in spain? the response to all of those initiatives mentioned was "no." a categorical no in culmination with police and judicial persecution of our authorities. our former president was here.
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and the former regional and a former counselor of our government. they were all here. been ruled as ineligible to hold office as a result. not only have they been made ineligible and incompetent to hold office, they have been banned from holding office, they have also been fined. pay 5 million euros in the next few days, there positions will be seized and their family members will suffer from this. furthermore, a large proportion of the bureau of this parliament and many other members of institutional bodies have been
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penalized. there have been cases brought against the president of this bureau for having made proposals that we should discuss the situation. --s latest way for offering has meant that 16 officials of lan government have been arrested, wearing handcuffs without being informed of the charges. and the leaders of the bodies that led the biggest and most peaceful recent demonstrations in europe are now accused of the claim of sedition, which carries a penalty of 15 years in jail. people who organize that where the
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wonder of the world because they were so well behaved and there were no incidents whatsoever. that's been the response of the central spanish state to catalonia's aspirations. we must alwaysch express in a peaceful fashion through the ballot. for many years, we've been pushing for freedom to decide. it's really very simple. and we haven't found anybody who thisere's no hesitation in state of spain that is going to talk about this aspiration by catalonia. thelast hope we had was monetary would exercise its role as moderator. confirmed oureech worst fears in that regard.
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now, turning to the people in spain who are concerned about what's happening in catalonia, we must send a message of c alm political determination. we've always placed priority on negotiation. i'm aware that the information media ando you by the the discourse that's been set up -- i must urge you to make an effort for the benefit of all concerned, an effort to understand the events that have brought us here and why we are doing what we are doing. we are not crooks, we are not lunatics, we are not trained to organize a coup d'etat, we have not been aected by aliens. we are people who wish to vote. we have done everything possible to do so in a fashion that's
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our effortsis of based on agreement and consensus. we've got nothing against spain or the spanish. on the contrary, we wish to get along far better. years, theafter many relationship between catalonia and spain is not working. nothing has been done to reverse this situation. the people cannot be obliged against its will -- didn't vote in favor of and doesn't want it. it is a democratic framework. there is democracy beyond the constitution. the presidents which is back to cattle and -- switches back to catalan. catalonia has won the right to become an independent state and has won the right to be respected and listen to. -- listened to.
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what's happened in this area in recent days have been happen for years, and now we are being listened to and respected beyond our borders. the outcome of the referendum majority ino was favor of yes to independence and it was again this year and a hail of battle charges. the ballot boxes are saying yes to independence. that's the path i'm committed to going down, as is well-known, the law on referendum states that two days after official proclamation results and if the number of votes in favor is greater than the number of votes against, the parliament -- i quote the law -- "shall have ordinary session to declare the independence of catalonia to all
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purposes and to begin the process." so, things have changed. the first of october has changed the situation. we now stand at a historic juncture. as president of the government of catalonia, i put the result of that referendum to you and i accept the mandate that catalonia should become an independent state in the form of a republic. [applause] pres. puigdemont: that's what
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'm stating in all solemnity and respect today and with the same solemnity the government is proposing that the parliament shall suspend effectiveness of this declaration of independence in such a way that in forthcoming weeks we can undertake a dialogue without which there can be no agreement. we think that this is a juncture where we need not only to down scale tension but also need there to be commitment, serious commitment to meet the aspirations of the catalan people on the basis of the result of the first of october and this has to take place in favor of dialogue which i'm proposing we now begin. you are all aware that as of the date after the referendum, there have been various initiatives with a view to mediation, dialogue, nationally and internationally.
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some of those initiatives are in the public domain. others are not yet, but they will. they are all very serious initiatives towards mediation. they would have been unimaginable until recently. the calls for dialogue and for nonviolence have been heard from every corner of the planet. the declaration yesterday, eight led by mr. winners coffee and the positions taken up by the presidents and prime ,iers of europn countries so there's a call for dialogue on the subject. europe is afraid of the outcome if there is no by log. those calls should be he
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eded. we need to open up a time period to have dialogue with spain. that should be done out of responsibility and i shall launching an appeal to response ability of everybody, the citizens of catalonia and the spanish estate. i urge companies and economic interests to continue generating succumb to theto temptation to deprive the people of benefits. political leaders, i would urge, should contribute to making their responsibility to defuse the tension. people inllions of catalonia who are urging the
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spanish government to cease violence and i would ask the european union to make every effort to guard the founding values of that union. we have a gesture of responsibility and of generosity here now in this parliament. i'm putting out a hand for dialogue. if in the forthcoming days everybody is equally responsible and meets their obligations, the conflict between catalonia and the state of spain can be solved in a tranquil, m, peaceful fashion respecting the world citizens. we will do everything possible to that end. through our history, we remember those who have suffered, who have made sacrifices. we want a good future for our children and grandchildren and for everybody who wishes to settle in barcelona. in catalonia. thank you very much. [applause] ofid: that was the president
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catalan addressing members of the catalan parliament in barcelona. he says he except the mandate that catalonia become independent in the form of a republic, opening a week long dialogue with the spanish government. a lot of talk about franco's death and what's happened since then. the numerous efforts this government has made to work with madrid to get a referendum like we saw on october 1. >> he made it clear that october 1 changed things. although he proposed suspending the referendum results, he says he has a mandate from the catalonians on how to proceed forward. that mandate means becoming an independent republic. maria, it seems the catalonian is open to dialogue in the next few days but also making it clear that he has a mandate. what are we expecting now?
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how are we expecting this to play out? >> the language here is key. "unilateral n did not com" did not come up. he said the results were unanimous, giving him the mandate. it's legal under the constitution and no one recognizes this boat. -- he is is not valid saying i do accept this mandate, he thinks it's valid. and then to suspend the results. he's saying, look, this is what i'm saying. i will continue if i have to, but at this point, i'm stepping back. now, the ball is in madrid's court.
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now, we have to watch for reaction from madrid today. not be enough to trigger article 155. he says he thinks the boat is valid, but he didn't actually do it. the parliament did not vote on anything . anything stemming from this referendum would be seen as a legal by the spanish. david: the president devoted a lot of time to talking about the way this election was conducted. he brought up the images we all saw around the world of conflict between those who are voting and different police forces. he maintained that the referendum was conducted fairly, the people did their best to get to the polls, he talked about 2.2 million people casting votes in favor of independence. how important was it for him to make that case to the catalan and the people -- catalan people and the people of spain?
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votes, that'son the number of votes we've seen throughout. when this was framed as the referendum in 2014, the regional , the referendum in 2015 and then the results on october 1. when he said there was violence, that is a fact. we saw that. i saw that firsthand. i was at a school that was shut down. was it a valid vote? a lot of people will tell you it did not meet the standards of a normal vote. a voter registry. a lot of people were told to go to a different polling station, you can go there and vote again. if you don't have a ballot paper it you don't have -- print from home and then casted as a vote.
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that is not normal. theerms of voter registry, -- to make sure there is one person, one vote. this did not comply with the minimum standards for a vote. it's crucial to take this been out of it -- the spin out of it. he talked about the government response -- that is true. that took place on october 1 is valid, that is not true. it has not been recognized by anyone as a fact. it was an illegal ballot. as it is, the spanish constitution prevails. >> we are already in the impact on the market, the euro at a fresh high 118. we knew the multinationals, the
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banks were trying to move their headquarters. we heard and a college meant of how this would impact the catalonia economy. acknowledgment of how this would impact the catalonia economy. >> obviously, there was a message that was sent out to the business community. the response from the business community has not been that. the business lobby in catalonia met with puigdemont. more than 15world, companies have left with the referendum. the symbol of the catalan economic powerhouse has left. are we still going to keep the euro? are we still part of the eurozone?
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this message to the business community won't be enough. the business committee wants uncertainty. -- wants certainty. >> thank you so much for following the latest developments out of barcelona. we mentioned the euro hitting a fresh high of 118. the day after the referendum results were suspended according to the catalan president. let's see where market stand at the moment. julie hyman is here with the latest. julie: let's take a look at the euro, rising to its highs of the day. the market reaction to the ongoing events in catalonia has been relatively isolated. we haven't seen that much market reaction outside of spain itself. indeed, we are seeing some strength in the euro today. we are also seeing movement upward in any of the other assets tied to spain. whether you are looking at u.s. abr or the spanish 10 year bond,
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you can see a bit of a lift in the yield here, but not as dramatic a move. you are seeing more dramatic moves in the spanish banks that trade in the u.s. trading in the united states -- not a huge increase on a percentage basis, but a dramatic move here. even if these comments don't provide certainty, they provide less alarm perhaps for investors bbba.milar move with percentagewise, a larger one. there's a million dollar etf that tracks spain, ewp is the ticker. similar movement in that etf. market reaction appears to be one largely of relief here to the catalan president's comments. u.s.esident trump in the
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telling reporters he will be adjusting his tax plan in the next few weeks. he did not elaborate on the policye changes from his -- he will meet with allies in the white house. kapur joined by sahil from capitol hill. that feud going on with senator bob corker. tell us a little bit about how this could alienate not only senator corker but other lawmakers. we know trump has publicly lashed out at mitch mcconnell as well. sahil: it is certainly a tenuous relationship between president trump and key figures in the republican senate caucus. he's feuding with mitch mcconnell -- the corker feud is the latest in a series of battles he's had with various members. 2018, he retiring in doesn't feel like he owes the
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white house anything, he says cannot do enough with the deficit to get his boat. 30 people in the income range between $50,000 and $150,000 hikes -- it's a minefield the president has to navigate to get this done. he needs 50 out of 52 republican senators to make this happen. david: there's a great line in your piece, relationships can repair quickly in washington. is that true of someone like senator bob corker who is not seeking reelection or senator john mccain? senator rand paul as well. reportedly, he and the president still have a great relationship. what's goingowable to happen with relationship
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between the president and senator corker right now. corker supported the president during the election. he's been critical of several points. relationships are only one factor in this. the relationships will matter. down the stretch, when it comes inarm twisting or persuading the final moments when you are kind to get the final few votes -- that's one of many things that matters. these offenders are laying down specific policy demands. the next step is up to the committees in the house and senate to draft their pieces of legislation. there will be a lot of things to iron out. >> thank you so much for that . let's bring in kevin cirilli from washington to talk about taxes and the other issues the administration is facing. we know president trump has tweeted about health care,
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saying since congress can't get its act together on health care, he will be using the power of the pen. >> he will pass an executive .rder on thursday the president going to take executive action, trying to encourage a bit more competition between state lines. this is not the major obamacare repeal he would have liked, but the administration taking action -- the lack of action on behalf of commerce as a sign. sign.alf of congress as a >> kevin cirilli and sahil kapur joining us from th capitol hill.
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scott pruitt formally proposed to rescind the obama era clean power plant in a statement that says "we are committed to writing the wrongs of the obama administration by cleaning the ."gulatory slate -- she joinsails us now from washington. give us the latest on the developments here. this is pretty much effective. >> this was expected, the president promised this early on. this is the first formal step to repealing this obama era rule that forced states to mixing significant changes to the electric power mix in the name of reducing carbon emissions. david: what has the white house said about why they are doing this? is it grounded in science? do they dispute the signs the obama administration put out
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there? what do they say is the rationale for reversing this policy? >> they are arguing that the obama epa overestimated the potential climate change and health benefits from this rule while downplaying the potential costs for customers, electric customers and utilities. they are arguing the epa under the rule was too broad. the obama approach required broad changes to the electricity sector. >> let's talk a little bit about the pushback we expect from environmentalists. >> environmentalists have already made clear that they're going to challenge this if the epa sticks to this plan. we're looking at final action six months to a year down the road. the attorney general of new york and other state leaders have indicated that they will challenge this plan.
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by focusing on how the trump administration is justifying this change if they have adequately justified a 180 in policy.t an >> the latest from the epa. coming up, we will be talking a little bit more about this very issue with gina mccarthy. we have to talk about the latest developments. this is the former epa administrator under president obama. that is coming at 3:00 p.m. don't miss that. onnty more coming up "bloomberg markets." this is bloomberg. ♪ are you on medicare?
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markets." we are live from bloomberg world headquarters in new york over the next hour. catalonia pulls back from the brink. it's president proposes to suspend the dependent referendum. half the world's billionaires bank with them -- we go behind sergio armani's strategy at ubs. they may. have 30% fewer staff in the years to come. walmart expecting a big boost in online sales, a 40% surge in e-commerce as it tries to catch up with amazon. we're looking at a bit of a recovery here on the s&p. julie: intraday records for all three major averages today


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