tv Bloomberg Markets Balance of Power Bloomberg October 12, 2017 1:00pm-2:00pm EDT
balance of power. mark: here the top stories -- weid: here the top stories are watching. president donald trump signs of a new executive order he says will expand insurance options for some americans. facebook coo sheryl sandberg speaking out publicly for the first time since reports that russian actors purchased ads during the 2016 election. we will talk to rand paul and get his thoughts on president trump's tax overhaul plan. ♪ david: after lawmakers failed to pass health care reform president trump signed an executive order to promote health care choice and competition. the order may create lower-cost insurance but it could
destabilize the insurance marketplace is created under the affordable care act. here's kevin cirilli joining us now from capitol hill. what is in this executive order? anpresident trump signing executive order trying to increase competition in the health care marketplace. he was joined by kentucky senator rand paul. there are concerns from some that this will destabilize the market. the administration heavily pushing back on that saying that publicly they feel this will lead the type of competition that allows people to have more choice when they choose their health care plan. privately they are saying it the read read jumpstart debate on capitol hill. pushback from the democrats. they are releasing a statement
calling this sabotage. tell us exactly what they are saying. thehey are saying this is type of reckless action that could not only destabilize onkets but also have impact americans who are engaged in the exchanges. on the flipside of that it's really interesting to note the coalition the president worked with on this. most notably someone like senato paul. we will be interviewing him later this hour. he was someone who was a holdout during that reform debate from the conservative side several months ago. it's not just health care the admin is talking about. saying today gary cohn the state and local tax reduction is still something the administration is going to use. as a revenue source for their tax plan. several sources familiar with thesituation say that administration is facing intense pressure from republicans on
capitol hill who are against that. david: we have heard from the director of the white house domestic policy council. he says this is just beginning and we should expect to see more like this. what more could the president do with the power of the pen when it comes to health care? >> it depends. first and foremost he wants to use the power of the pen as a reformget meaningful passed on health care. as you remember it was just last week when the republicans led by mark walker put forth a budget proposal that ultimately failed because -- setting up the process for tax reform. his version actually would have enabled to reopen debate on health care. that was left out. republicans say they want to repeal and replace obamacare but they have struggled immensely trying to get that done. the closer we get to the end of the calendar year the less
likely it becomes for me for health care reform. in midterm election year people like senator jean heller don't necessarily want about hanging in the balance. shery: and what it comes to the executive order itself when could we see regulatory details being sorted out? of the frustration from several republicans on thetol hill is palpable at lack of detail. especially something like tax reform where the notion for how they are going to pay for the $6 trillion plan remains to be seen. the president yesterday saying he is going to in the next couple of weeks announce new details. aside from the nine page framework there aren't that many details. tohas essentially left it the tax-writing committees. on the issue of health care we have had this debate so many times that i have lost count. in terms of republicans trying to get on the same page. right now no meaningful type of
health care reform being discussed. remember infrastructure? nothing on infrastructure either. shery: kevin cirilli, thank you. we will see him later joined by kentucky senator rand paul. let's get a check the markets. a little bit of downside pressure on ts session. julie hyman joins us with the latest. julie: we can call it a minute amount of downside pressure. all the three major averages closed at records yesterday. we are seeing a load of a pause. -- a little bit of a pause. we are watching some of the today.payment processors square is going higher. oppenheimer analyst judge kelly is initiating his rating on the shares within outperform. $35 is his price target and he says the shares have more upside
potential because of expansion into different revenue channels. we have blackrock network holdings coming out with third-quarter operating revenue that missed estimates and cut its forecast. the ceo saying we have recently seen increasing competitive pressure in some retail markets. be what iss to having the effect. as for more traditional banks we are watching them as well today. we got earnings from citigroup and jpmorgan. estimates.m beat there were some things under the hood that were a little bit disappointing. jpmorgan coming out with equity trading that missed estimates and both are increasing their provisioning for credit card losses or other types of which seems to indicate a return to consumertion of the credit polls. that appears to be putting pressure on the shares. we will be hearing from bank of
america and some of the other big banks in the coming days. a quick check on the bloomberg u.s. dollar index it has been trending a little bit higher and turning around over the course of the session. david: thank you, julie hyman. poisednt trump appears to decertify the iran nuclear deal. we will talk to a republican member of the house committee on foreign affairs next. this is bloomberg. ♪
proposal to let nafta expire after five years unless the parties can agree to extend it. according to a person familiar with the talks the so-called sunset clause was presented to a small group from each nafta country. canada and mexico rejected the voted atr wilbur ross last month saying it would cause uncertainty for businesses and tentially hurt lg-rm investment. facebook'sberg says focus on preventing cyberatta was the reason the company didn't realize the extent of russian election interference on its ad platforms. spoke today in washington and said facebook fully intends to assist the ongoing congressional investigation. >> we are going to give them the material we want. we want the full picture to be understood.
we don't want this kind of foreign interference into an order to prevent it we are all going to have to fully cooperate. in washingtong is this week to meet with elected officials. the meetings are ahead of the november 1 house hearing when facebook, twitter and google are expected to testify. the city of charlottesville is joining a lawsuit at six to prevent the heavily armed bands of white nationalists and militia groups that descended on the virginia city for a violent rally in august from returning. the city council vote this morning to join the suit which seeks a court order preventing future paramilitary activity. one counter protester was killed when she was hit by a car. abe will retain his coalitions large majority in parliament after the october 22 election. coalition could win more than two thirds of the seats up
for grabs. a ctory by that margin would pave the way for him to possibly become japan's longest-serving prime minister ever. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. promisesesident trump his tax plan would save millions of american families money. hastax break in question emerged as a key flashpoint in the debate. the center of all this -- what happened between when this framework was released by the white house in the big six and today? they describe the president is upset with the fallout this might be from removing this deduction. what happened? >> we are getting some mixed signals.
the president was angered and surprised to find out that repealing state and local tax deductions would in fact hurt the middle class. we had heard those concerns prompted him to say there would be some changes made in the coming weeks. this morning his top economic adviser said the president is not rethinking his position on the state and local tax deduction. this comes on the heels of gary cohn telling bloomberg the president was open to negotiation on the tax break. shery: we have also heard from chris collins saying they could get some compromise. we are also hearing from representative peter king saying there could be some limit to the deductions for people with income less than $400,000. could that idea gain traction at this point? >> there is a meeting going on among republican representatives from states that would be particularly affected. they are meeting with kevin
brady and we can assume those kinds of modifications are being discussed. that you mentioned, peter king of long island has proposed a cap of $400,000. that is something were presented, garth there has said he is supportive of as well. david: what kind of groups are in favor of leaving that deduction in place? >> the national association of realtors are very protective of the state and local tax deduction. the realtors stand out as one of the main groups that would be heard. potentially if this were included in a tax bill. shery: around two dozen house republicans would be against getting rid of this deduction. can president trump afford to lose them? >> it's a good question.
we know there are 240 republicans in the house. they need 218 votes to pass a bill out of the house. many votes tohat play with and we know that people like representative king have said they will not vote for a tax bill if it includes the repeal of the state and local tax deduction. is kind of coyip on this issue. the president has made it unequivocally clear that a key priority is to cut taxes for america's hard-working middle-class families. i ran into the same problem yesterday when i talked to kevin brady. there is a tendency to return to general terms. what have we heard from the speaker of the house? that's another big question. i'll ride was at an event at the heritage foundation this morning. very adamant about the fact that the repeal of state and local tax reduction should be included in a tax bill. he echoed what conservatives that it'sin the past
essentially a form of subsidizing high tax states and he still claims at the end of the day people will be better off even without the state and local tax deduction. shery: i think the reason we avoid so many details is the chunk of money that would add to the deficit comes a problem. how much are we talking about and how problematic is this? we know that ultimately over a decade repealing state and local tax reductions would generate about $1.3 trillion. if there modifications made like the cap that's obviously going to eat into that egg revenue raiser. that is certainly a number everyone is going to be looking to see. up, we will hear from senator rand paul. republican of kentucky. 1:30.s coming up at president trump appears poised
bloombergcome back to markets: balance of power. i'm david gura. shery: i'm shery ahn. president trump is ready to decertify the iran nuclear deal. he addressed the deal at a rally yesterday in harrisburg, pennsylvania. myi will also be announcing statement and what we will be doing with respect to the iran deal. speaking of badly negotiated deals. doing that very shortly. shery: here with the latest from capitol hill is representative adam kissinger.
house foreign affairs committee member. inc. u for joining us today. one thing is for president trump to decertify the deal. another is for congress to actually reimpose the sanctions. what are your expectations for yourself and other lawmakers about re-imposing sanctions and what with the consequences of that be? briefed on kind of a larger strategy with iran and i think the president is going to lay that out when he gives his speech. the deal is a small part of overall iran's behavior whether it's destabilizing the region, missile development. certificatione it's one short of pulling out of the deal. pulling out of the deal is tearing it up and saying it's gone. it's going to give us an opportunity. to try to get europe and hopefully iran on board to say how can we do a deal that's better. iran is capable of sending their
own oil samples -- soil samples to the iaea. there is a lot of loopholes in this deal that we need to tighten up. i hear your optimism, congressman. we have heard over the last few days words of encouragement from the british prime minister saying she doesn't want the u.s. to back out of this deal or do anything to it and iran saying it's not up for renegotiation. how confident are you we could get all of the parties back to the negotiating table? >> you will never get them back to the table if you continually recertify the deal. i think having the hammer out there will make the diplomacy more likely and when it comes to dealing with an adversary you have to have a stick behind it
to actually force that. this is a mild stick in comparison. there's no threats of military strikes. stick to tryonomic to get to a better deal. tore not saying we are going bomb iran. we are saying we need a deal that could certify in a much stronger way. i would love to see missile development under that umbrella as well. lift -- ifran cannot we cannot lift the promise of lifting sanctions how can you rein in north korea? >> there's a process in place that every three months the president has to certify or decertify. let's either certify or decertify. in terms of north korea every negotiation we have tried in the past has led to north korea getting some good stuff and continuing to build their nuclear arsenal. if there's going to be a diplomatic solution in north korea which we all pray for it's
going to be also with china, russia and some of the other countries involved in this. not just the united states. if you think this president and administration understands what this deal was why not keep the deal as it's written in place and work on ballistic missile testing or other issues you have brought up. the dealsu decertify it gives us a 60 day clock to determine what to do. the hope is to bring everybody on board. the president is going to outline a broader strategy. just a quick example. mr. sullivan was in front of our committee yesterday. the u.s. put the banning of missile testing in that deal. they ultimately had to pull it out or they knew they couldn't get to an agreement or that showed how eager the prior administration was to get to an agreement at all. that is something that is
essential. condemning north korea for missile development and testing is an essential part. shery: the house committee was today deliberating on more sanctions on iran. are those the same economic sanctions when the nuclear deal was struck? >> those sanctions will be dealt with when the decertification begins. these are targeting individuals associated with the regime. it's part of a continued effort to ratchet up pressure against terroristic activities of iran. the land bridge. the support of has the law and all of these nefarious actors in the region. since they have had the financial resources released under this their activity in the region has gotten way worse and i think we have to push back. nobody is talking about a large military involvement. there's ways to use soft power to our advantage. mentioned you have
een bried on what the white house was thinking in regards to the iran nuclear deal. i have had a lot of conversations with h.r. mcmaster. shade on theng administration but i very rarely had a briefing by anybody in the prior administration. only once and that was during 2013 listeria. mcmaster is taking in point -- input and talking about what they are thinking. i think the outreach has been really impressive. you have to have congress on board. we have heard cryptic rhetoric coming from the president when it comes to comments about, before the storm. have you gotten any sense of what that could mean? >> i haven't. i don't know what that means. when it comes to diplomacy and
discussion against adversaries sometimes the unpredictable can be beneficial. we have the evidence that kim jong-un has tried to reach out to republican strategists. having a sense of unpredictability is actually good on the international focus. domestically it can make people nervous. in this case the essential point is we have to compel action from iran and north korea. thank you, adam kissinger. coming up on the program a crucial vote for the president's agenda. the senator who could stand in of tax reform. republican rand paul of kentucky will be joining us after the break. this is bloomberg. ♪ who knew that phones would start doing everything?
no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. shery: this is bloomberg markets: balance of power. i'm shery ahn. david: i'm david gura. here's mark crumpton. maryland senator ben cardin
says the executive order signed by president trump today to allow consumers to buy health insurance across state lines won't save them any money. senator cardin spoke to bloomberg tv. make matters to worse for those in the individual market with premium increases. it takes healthier people out of the pool making it more expensive for those that have no other options. the president is once again taking steps to try to undermine the affordable care act. >> officials say could take months for the changes to kick in and may not be finalized in time to affect coverage for 2019. french president emmanuel macron is launching the second phase of his labor market overhaul. he met with french workers and labor unions today to kick off negotiations that are expected to last for months. the discussions come as protests continue across the country over
the first set of measures president macron signed last month. e rules ke it easier for firms to hire and fire. they also cut the power of collective bargaining. the army is scheduled for hearing next week for sergeant guiltyrgdahl to enter a plea that he endangered his fellow soldiers by walking off his remote post in afghanistan in 2009. he will appear before a judge at fort rag on monday. he could face up to five years on the desertion charge and a life sentence for misbehavior. former federal reserve governor kevin warsh is now the favorite to run the central bank according to a new bloomberg survey of economists. he has jumped ahead of current fed chair janet yellen. she is tied for second place with jerome powell. president trump has indicated he may name a nominee this month. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries.
i'm mark crumpton. this is bloomberg. david: the white house press briefing taking place any moment. you can watch that at tv on the bloomberg. the spat playing out between the president and the jr. senator from tennessee. the president writing on twitter senator bob corker begged me to endorse him for reelection in tennessee. he said he could not win without my endorsement. he also wanted to be secretary of state. i said, no thanks. the senator responded on twitter. he said it's a shame the white house has become an adult day care center. someone obviously missed their shift this morning. that exchange speaks volumes about the dynamics between these politicians. it may also says say great deal about the state of the republican party. he joins us now. let's get past the invective if you look at the electoral
implications of what have gone on here, what did you find? >> part of what's causing trump to lash out like this is he's really becoming weakened politically. not only has he been embarrassed by reports that his secretary of ,tate called him a more on corker called the white house and adult day care center. the real blow was his endorsement of luther strange in alabama's primary two weeks ago. he lost rather decisively to roy moore, a candidate endorsed by steve bannon. we got some proprietary access to some data from a republican analytics firm that took a look and measured what the effect of trump's endorsement was on luther strange behalf. they found it was no effect at all. his endorsement essentially amounted to nothing. concerning his political power may be weakening is one of the reasons he is lashing out not just at corker but at critics in the media and elsewhere and
trying to project an image of strength. shery: why is it so important for him that his endorsement is valuable? a very healthy ego and self regard. to his credit he was able to 16 very well-qualified republican nominees and then beat hillary clinton. certainly he is a guy with considerable political talent. his expectation and the expectation of strategists was that trump would be able to help by using republicans that strength to help them get reelected. traditionally voters are quite hostile to the party in power in midterm elections. that's especially true this cycle given the lack of movement on the republican legislative agenda. the hope among republicans was the trump would be able to vouch i needm and tell voters you to reect thm to help me.
what we saw in alabama was that trump evidently doesn't have that power. david: the newly liberated bob seek reelection. what does it mean for others who may be in places that are more swing districts and might be worried about endorsement? how is this going to change the way they relate to the president? less is going to make them willing to toe the trump party line. especially republicans in purple or blue areas who can't count on a deeply red republican electorate to send them back to washington whether or not the legislative agenda moves forward. i think the fact that trump although he himself remains quite popular among republicans the fact that people who support trump are seemingly unwilling to support republican incumbents is a real problem that i think is going to incentivize politicians
to look out for their own interests and in places that are more democratic leaning those interest rates are going to divert from what trump and others in washington want to do. talk aboutontinue to this intraparty war happening in the republican party. given the failures we have seen from trump what does that mean when it comes to the democrats in the next two elections? in theory any chaos and division in the republican party ought to accrue to the democratic candidates -- benefit of democratic candidates. more extreme republicans would knock off more electable incumbents as we saw happen in alabama two weeks ago. that would open the door for democrats to prevail in states where they otherwise might not. if you look at the house where democrats only need to win back 17 seats for the senate where
republicans only have a two seat majority if this really becomes a wave -- if alabama's example is representative of what's going to happen next year in the midterm elections than republicans could really have a problem and democrats might be sitting pretty come election day. make: i'm curious what you of what he announced this week. how influential is he going to midtermaping the election and moving the campaign schedule forward a little bit? >> bannon's endorsement of roy moore two weeks ago really brought political awareness to really doest there exist a deep division within the republican party and the fact that the insurgents won rather than the establishment side that trump had endorsed i think worried a lot of people because it suggests that this outsider
antiestablishment brand of carried come to the white house could hurt a lot of republican incumbents who are counting on reelection. bannon said this week that he field candidates to run against republican incumbents in every state except for texas and if he's able to do that and marshall a viable slate that could really pose a problem for republican incumbents in washington. green.thank you, joshua , aing up on the program crucial vote for the president's agenda. the senator who could stand in the way of tax reform. rand paul will be with us after the break. this is bloomberg. ♪
shery: this is bloomberg markets: balance of power. i'm shery ahn. david: i'm david gura. the president publicly feuding with bob corker. he needs all the votes on capitol hill he can get. kevin cirilli is joined by one of those critical lawmakers. >> we are here with senator rand paul who just got back from the oval office. the president signing an executive order involving health care. what would it do? >> it would allow individuals to join associations across state lines and purchase their insurance. what it might allow is millions of people to get insurance by the leverage of size to lower their price. the national restaurant association, there's 2 million restaurants. 15 million employees. what if one person could negotiate the insurance rate for all of their employees and associates?
that would be an amazing amount of leverage to drive down insurance prices. biggest freeps the market reform of health care in a generation or more. healthycs are saying if folks leave the exchanges and go into administered of pools and get health care privately it would put at risk the obamacare exchanges. >>for everyone leaving the obamacare exchanges. they are a terrible plac and your wife have to buy insurance as individuals nobody wants that. a plumber and their spouse could get an association and buy insurance with a million people. buydy should have to insurance by themselves. the markets are terrible place to be. this will provide an exit ramp so people can get group insurance like people at general motors or take good. -- toyota. get thel groups can same insurance that big groups. do you hope the
market is destabilized and it will get your call expect the drawing board? right now the individual market is about 11% of the public. it's really sick. we keep funneling money into it. just funneling taxpayer money and. what if 99% of people left the individual market, joins the association and got their insurance that way? there would be no individual market left and then we would have problem. wouldn't have a problem. if there are a few people that remain the can't get into an association we will be able to help them in another way. you have tweeted concerns about their potentially being a tax hike on middle income americans. do you still have those concerns? the presidenth and the budget director. they are very open and the president was adamant we e t
gog to raise taxes on the middle class. i take him at his word but the details are important. 25%ing the middle rate of the same and getting rid of two big deductions, i don't know how your taxes don't go up unless you don't do something else. if we do that i am all in. i am for a tax cut. anything we can do to simplify. i just want to make sure nobody in the middle class gets a tax increase. >> when you say they are open are they open on negotiating with state and local tax deductions? >> i think they are open to make sure the middle class doesn't get a tax increase. letrobably is bad policy to you deduct state and local income tax. if you get rid of that you don't want everybody's taxes to go up. you have to lower the rate. you have to do something. conservatives have put forward tax plans in the past our first principle was lower taxes for everybody. not to deductcy
your state and local income tax. if you get rid of a deduction and you don't lower the rate you have a lot of people to increase taxes. we appreciate you coming on bloomberg. thank you. back to you. cirillievin interviewing rand paul on capitol hill. very important interview. up, a day after meeting with the house intelligence committee several sandberg -- sheryl sandberg becomes the first executive at facebook to speak out as the company becomes further entangled in the russia probe. more on that next. this is bloomberg. ♪
shery: i'm shery ahn. time for our stock of the hour. on pace for its worst day since 2013 is at&t. shares are sharply lower after the company pre-announced its third-quarter to the downside. joining us is abigail doolittle. wire investors taking it so badly? >> the actual preannouncement not so much. they preannounced profits lower by about two cents. very small amounts relative to this company's financials. they did not like the wide. the weakness with video subscribers. we are going to see why this is such a big issue. this is the financial analysis function on the bloomberg. they preannounced a loss of 390,000 video subscribers. 20% of mobile phones, 5% international. 32% entertainment and internet.
22.4 entertainment percent. this is the directv portion. they acquired directv in 2015. it's looking like not the best deal. video subscribers or cord cutting for cheaper options such as net links. it really seems to be a trend. says the wheels are falling off satellite-tv. there's the at&t time warner deal still percolating. >> it looks like it will go ahead. everything looks clear. of course with trump anything is possible. is there a possibility that trump could somehow intervene. there is a very small possibility unlikely because the fcc.he hands of
it would be a huge negative for at&t and interestingly craig moffett says these results really point to the idea there's not going to be a dish at&t deal in the future. some weakness today for at&t on video subscriber losses. shery: i planning to get internet service. i am wondering will this affect that. we have joint chief of staff john kelly speaking right now. coming into this job i really needed to get to know the lay of the land. i have done three off the record. the first one was violated. thank you for all of you that didn't violate the trust from those off the record periods.
i would offer to you that although i read it all the time pretty consistently i'm not quitting today. [laughter] i don't think i'm being fired today. and i not so frustrated in this job that i am thinking of leaving. i will tell you this is the hardest job of ever had. this is in my view the most important job i've ever had. it is not the best job i ever had. the best job i ever had is when i was an enlisted marine sergeant infantrymen. that was the best job i ever had. i'm nothings change quitting, i'm not getting fired and i don't think i will fire anyone tomorrow. you said you are thinking of leaving. are you frustrated? >> no i'm
not frustrated. this is really hard work. running the united states of america. i am working for someone who is dedicated to serving the country in the way that he has talked about for a number of years. there are incredible challenges. care,ic, health international challenges that have to be dealt with. don't mean any criticism to mr. trump's predecessors but there is an awful lot of things that were in my view kicked down the road that have come home to roost pretty much right now that have to be dealt with. this is hard work. with all dueration respect to everyone in the room is when i come to work in the morning and read about things i allegedly said or mr. trump allegedly said or people who are going to be fired or whatever
and it's just not true. that's my frustration. and i mean no disrespect. >> the situation in puerto rico. let's talk about the president's tweet this morning. does president trump believe that the people order rico are american citizens who deserve the same access to federal aid as people in texas? the tweak that says, we can't be in puerto rico forever. >> i think he said the u.s. military and fema can't be there forever. the minute you go anywhere as a you are trying very hard to work yourself out of a job. there will be a period in which we hope the u.s. military and
fema generally speaking can withdraw because then the government and the people of puerto rico are recovering sufficiently to start the process of rebuilding. i just got off the phone with the governor of puerto rico. great relationship. the president deal with them periodically. our country will stand with american citizens in puerto rico. dod iset about fema and accurate. they are not going to be there forever. to transitiont is to the rebuilding process. -- christian newspaper association. in light of the present support of pulling out of unesco, what is the president's response to -- our taxgency
dollars going into that ? >> i'm not as familiar as i should be with it. the responsible way to look at and i did this at dhs and iraq when we are spending u.s. taxpayer money we should look at every program and decide whether it is being successful. if it is not being successful than change it so it can be successful. sometimes you just say it's not going to work. welcome toe minister the withdrawal from unesco. i had met with the prime minister abe israel in may. he made a statement not too long ago denouncing -- i thought it
would be -- >> i would have to get more familiar. >> you focused a lot on process and establishing process at the white house. i'm wondering if you caexplain -- >> is this the iron hand i brought the staff? >> is that how you see it? you guys with the cameras always catch me when i'm thinking hard. >> can you explain what the process was? the president's involvement, how americans? family?and her the level of the president's
involvement and awareness. -- withve roughly 20 four of them, the three children in the mother. number ofw reduced hostages by almost a third. that's not to take away from all of the unfortunate people still being held hostage. our partners in pakistan, we have been watching for the family. what can i say. lie here.king up a i'm just saying within the classification. great partners in this regard. be a changeere will in the cooperative relationship between the united states and pakistan. the good news is the pakistani got custody of the
american citizens. three children, one adult female. the husband is a canadian citizen. took them into custody. held them for us. held them. we had arrangements to transport them back to the united states or to canada. anyway they wanted to go. medical treatment along the way. a lot of this would be psychological treatment. they had essentially been living in a hole for five years. luckily the pakistani officials took them into custody so to speak from the forces of evil in that part of the world and they are being cared for now. as a gentleman with knowledge of world affairs certainly you know the court from mcmillan, events, events, events could what are the events that keep
you concerned awake at night in terms of global affairs? there is a big ones. we have the nuclear threat from north korea. a possible nuclear threat in time by the iranians. concern ise biggest not an immediate concern. if this continues in north korea, if eventually other countries become nuclear powers obviously we already have some out there. it could be a real impetus for a lot of countries to develop or by nuclear weapons. i would tell you this in spite of what someone reported the other day about president -- i don't think you would mind my sharing this. what he has said to me many times and to the group oftentimes. i hear him most say about nuclear weapons that wouldn't it
be great if we could get rid of them all? as opposed to we need 10 times more. hen more than when references the maintenance of nuclear weapons and modernization. that doesn't mean increase in numbers. not a lot keeps me up at night. the good news is we have a great state department. doing the diplomacy thing. as jim mattis and i have said many times, if we do not find the state department properly, by us more bullets. world, you have the state department doing what it does every day. you have the u.s. military, the greatest military on the planet. we do not like to think in terms of things turning to military, but that is an option. the great thing about our military is it is a deterrent effect, whether it