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tv   Bloomberg Markets Balance of Power  Bloomberg  October 16, 2017 1:00pm-2:01pm EDT

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markets: balance of power." david: top stories is this hour, it's critical weekend president trump us tax reform -- plan. what could give trump a much-needed legislative win? and nafta negotiations reeling after a list of aggressive u.s. proposals. we will speak to the former expert,ministration michael froman. thethen we will speak to chairman of the president's council of economic advisers, kevin hassett. ♪ susan collins says she's leaning towards supporting a senate budget resolution that is key to the republican effort to pass a major tax overhaul without the need for democratic votes. she spoke on "this week"
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yesterday. >> unlikely a yes on that budget. david: join me with the latest, kevin cirilli, and steven dennis, joining from capitol hill. thehen, the process, procedure here, when could we see a vote on this? steven: we could see a vote, a end of the by the week, provided all systems are go. they will be talking to the senators today when they come back for a vote. making sure that everybody is going to stay on board. there are several republican senators who in the past have budgetuarely on these votes, including rand paul of kentucky. but so far we are hearing an expectation for leadership that they do expect to have a vote sometime late this week. shery: please, go ahead. steven: they need 50 votes.
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they can lose to, have two defections and so far we are still not hearing of any movement towards having three defections. now that you have senator on board, keepy in mind this is just sort of setting the framework for tax reform. it doesn't actually pass the bill. likef these senators, corker, have said that they will vote for this and reserve judgment on the final bill until they have seen that. senatorteven: -- shery: collins not running for maine governor could have been blessing in disguise. at the american banking we heardon convention, this. but stake a listen. >> the president has said to me and the secretary that this has to be done this year. i think you will start seeing rhetoric from the president about this needing to be done this year.
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congress has to stay, seven days a week, lose your vacation, it's ok with me, i'm willing to stay, you stay and get taxes done. shery: the president, of course, meeting with the senate majority leader right now. how much will this help? kevin: to be a fly on the wall in that meeting. moments before, president trump took that meeting, speaking positively about his former chief strategist, steve bannon, who left the white house and launched a series of political hepaign activism's, saying would only support republican candidates who said that they would not support mitch mcconnell should he try to run for majority leader. i think that this has really become a complex political situation with the president trying to pressure republican leadership in order to get some kind of legislative win done. steve had an excellent point. really, this is coming down to the president now personally
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trying to negotiate with the few senators he needs to bring on board to get that legislative win. he golfed yesterday with rand paul of kentucky and right now as we speak he's with the majority leader, mitch mcconnell , so there's a lot of division within the caucus. according to the sources and talking with they are going to be making tweaks to the tax bill, including on the state and local the duction tax and they could actually have a situation where they remove some of these situations that others have said are going to negatively hurt the moree class to give centrist and, yes, even people like rand paul on board. are expect in comments from them after the meeting concludes. a fairly simple question, why is it so difficult for the senate and the house to be on the same calendar there? republicans are so eager to get this all done, why can't abm the same page when it comes to scheduling?
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steven: i think you will see a lot of urgency for mitch mcconnell to get something done before the 12th. roy moore is coming from alabama and has a very different view on taxes, wants to get rid of the income tax entirely. of an artificial deadline now, december 12, in the hallways. once you start rolling out the details, particularly who is ,aying the bills, higher taxes ofn in the bill, lots attention paid. they kept us in the shadows trying to get this budget resolution done. then they go to the committees with a more formed bill, which is when you could see the trouble, the knives come out from the very centrist groups
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that don't want to pay higher taxes. we have already been reporting on and are starting to see some corporations, like microsoft, that have managed to have a lot of their profits overseas, they don't want to suddenly have a new tax structure that means their tax bill is going up, so it some thing to watch for the next few weeks. 58% of respondents in the poll said that the tax reform favors the wealthy. only 18% said they thought it favored the middle class. we have got the council of economic advisers touting this tax reform plan, saying it would increase household income by at least $4000 per year. but there are several copy ops there. it will take several years, as well, not to mention that the repatriation of funds from actuallyonals could
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help shareholder dividends, not necessarily household income. whatever people are feeling about it, how is the white house trying to sell it? kevin: the white house is trying to push back against the notion that it favors the wealthy. that's why you seen the president make slight tweaks in political strategy in terms of the audience he's trying to reach. in terms of talking to outside groups that do policy wonk conversations and behind the scenes here, speaking to the national association of manufacturers, it's a forum hosted by the conservative heritage foundation here in washington. they were giving a speech in harrisburg trying to drum up restaurants support but there is no question that the suppressive and is all in on tax reform. let's now get a check on how markets are trading. another day of records, julie
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hyman has the latest on that. still, a very slow grind higher. julie: all three major averages touching records. we have seen the nasdaq waning as the dow picks up the slack. a lot of folks are talking about the anniversary we are approaching this week a black october 19, 1987. even though not everybody is drawing parallels, it's always tempting to do so. it looks like the run up to the 1980's versus the one we have been seeing here with all the records we have been talking about. you had that they run up particularly in 86 or 87 before the big drop for black monday. there have been folks calling for caution here, though i haven't seen too many with a germanic drop like that. we talked about it earlier, their forecast was 2500, which
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is very slightly below where we are right now. it definitely is a big risk on tenor, both today and what we have seen recently. copper is surging after we got chinese factory data goosing metals broadly with some of the miners, though it is not universal, you can see freeport mac brand with a gold up. oil prices are also rising with increased tensions in iraq between those forces and kurdish versus. we are seeing crude oil higher on top of that supply there. transocean and noble are some of the gains we are seeing there. when we talk about risk on over the longer term at the bloomberg, it's not just start -- stocks and large cap. we are at the emerging markets index in white. looking at bit coin, we have talked a lot about that, as well as the russell 2000 and yellow.
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these various other ways of measuring risk. bit coin, you argue, has been hitting record after record as well. julie, thank you. -- shery: julie, thank you. david: coming up we will have the latest on how the u.s. is trying to solve the escalating crisis with north korea.
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shery: welcome back. this is "bloomberg markets: balance of power." david: we will bring new comments from the president and the majority leader as soon as they happen. but first, first word news this morning with mark crumpton. mark: president trump held his first full cabinet meeting since
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june. he addressed the iran nuclear deal, saying again that the agreement was not good for the united states and needed to be changed. itron --amco -- the deal, i feel strongly about what i did, i am tired of being taken advantage of as a nation. we have been taken advantage of for years and decades, frankly, and i'm tired of watching it mark:. that totalnt added termination of the deal is a real possibility, but noticed that he has recently seen a change in tone from the leaders of iran. in germany, a setback from the chancellor there as she gets setbacks. they posted their worst results in state elections since 1959, which may weaken her hand in negotiations with the free
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democratic party and the green party. the european union has slapped new sanctions on north korea for developing nuclear weapons and ballistic missiles. the sanctions agreed to buy the eu foreign ministers today include a total ban on investment in north korea and a ban on the sale of refined petroleum products and crude oil. the measures are aimed at income supporting their nuclear and ballistic missile programs. pledarmy sergeant bergdahl guilty to misbehavior before the enemy. walked off his royal post in afghanistan in 2009 and was captured by the taliban and held for five years. the misbehavior charge carries a maximum penalty of life in prison. a sentencing hearing will be held next week. global news, powered by 2700 journalists and analysts in over 120 countries. i'm mark hampton, this is bloomberg.
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shery: rex tillerson has insisted that president donald trump wants to resolve the confrontation with north korea through diplomacy. he appeared on the state of the union program yesterday. >> he has made it clear to me to continue diplomatic efforts. as i have told others, diplomatic efforts will continue until the first bomb drops. joining me now, bill. we are getting contrasting messages from tillerson and president trump. in the meantime, looking at korean media, there is a lot of criticism over the president and what they allege as a warmongering president trump. why should they stick with washington when they are not even sure where washington stands on these key issues? why not boost their product with beijing? certainly the trump style
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is not for everyone's stomach. some people just have a difficult time with it. but i think that what the administration is trying to point towards is this alliance between washington and beijing on sanctions, that's the message they are trying to take to the south koreans and the japanese, saying that we passed to tough rounds of sanctions and they do seem, from the trade data we have seen from china, to be having some kind of an impact. we have seen trade declining a bit and that is basically what u.s. policy has been, first and foremost, to try to pinch the north korean regime where it really hurts, which is getting access to hard currency flow. david: this party congress that is going to be happening shortly and beijing, and the trip that the president is going to take to asia in just a matter of weeks, how large is a looming as we look at what has happened next? the chinese party congress
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has been a big calendar item all year. for the chinese, they don't want somehowim jong-un upending or surprising them with any unprecedented or surprising actions. they don't want the boat rocked at this point. for president trump, it is going to be a huge opportunity to take his case on north korea directly to all the leaders in asia. there are a number of summits going on and he is obviously going to get a chance to talk to jinping in -- z person again. shery: and of course, last week we saw president trump refusing to recertify the iranian deal. breaking the spirit of the deal, how will he sell that to european allies?
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we are still seeing pushback from key u.s. allies in europe in the wake of that decision. is eu foreign policy chief planning to come to the u.s. at the end of this month, early next month, to lobby for the deal. they really want to make sure the trump's decision was not to certify, which was really a u.s. domestic decision that doesn't spill over into damaging the broader accord, an international agreement with seven nations. they want to contain the damage from this as much as possible. the fact that it's not a bilateral, two-party deal, you got this visit they are talking about. what else i you looking for on the horizon when it comes to what's next? bill: you can expect secretary tillerson and other top aides to be reaching out to their european counterparts to say -- listen, we stayed in the deal, but let's talk about some of the
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other measures that we have concerns over. whether it is their support for bush are all assad -- al-assad let's find another way to work together on these troublesome issues so that the u.s. feels like it is worthwhile to stay in that nuclear agreement. shery: bill, thank you. david: still ahead, facebook makes an unorthodox move to combat election meddling. we will tell you all about that, and. this is bloomberg. ♪
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shery: welcome back. david: ben bernanke, speaking in toronto, headlines coming from that event, including the fact that he supports the
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reappointment of janet yellen as the fed chair. also talking about tax reform as well, saying that the trump tax cuts are unlikely to be felt in the near-term. and of course talking about why chinese economy growth will slow. we are expecting third-quarter gdp numbers out of china right now in the forecast. david: we will continue to monitor those headlines. in a move designed to prevent foreign powers from in you letting future elections, hire moreopes to workers with national security clearances. sarah joins us now from san francisco with more. let me ask you first of all, the the motivations for doing this. what would a candidate with a job fiction including national security do for facebook? them to be more proactive in terms of figuring out the threats to these democratic campaigns, squashing them before they did, postmortem investigation. obviously the allegations that
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the russians used the facebook platform, they were not able to confirm that until months later and that was only after the u.s. had published a paper that noted ,he internet research agency when facebook found out about that, they were able to pinpoint the actors who tried to manipulate the election. in the future people with security clearances were able -- will be able to get a lot more information sooner and possibly be more proactive in ensuring election integrity. shery: where will these people come from? sarah: generally people get clearance working with the government through the military or one of the intelligence agencies, or even through government contractors. once you have clearance, you can transfer it to a new job, even sector, and if
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they didn't have clearance, they would have to let the government in more directly. the personal clearance serves as between -- a liaison facebook and the government and allows them to sort of have a more harmonious relationship without having anyone have to come in and take a look behind the curtain. how competitive is this? i imagine that they are competing for those workers with other tech companies. is there any concern about scarcity? -- sara: just people are high in demand, amongst the scarcest of employees. you are heavily recruited across the spectrum. these are very in demand workers. however, i think that the problem is, the thing facebook
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is working on, it's unprecedented in terms of ways people are trying to manipulate the public and someone might find this to be an interesting career path. shery: how does this play into the broader restructuring efforts at facebook? facebook has said that they will vastly increase their security investments. today in their job listings you see a lot of people being hired to do beta analysis and work with law enforcement. there are interesting jobs being listed for facebook. normally i go in and see that they need somebody's help to explain the ambition of artificial intelligence, but this is clear, they're hiring priority right now is getting people who can make sure that what is happening with them now, with the investigation into the russian platform, it's not a situation that they want to encounter in future elections. when: november 1 is
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facebook executives are due to testify. what's going to happen between now and then? will want to appear as proactive as possible. sheryl sandberg tried to reassure congress that the company was doubling down on the to educate them about how the platform works. the platform is not something to thinkress has had much about. there are so many aspects that could be explained in this kind of hearing. david: sara, thank you very much. up next, nafta negotiations, reeling after a series of aggressive u.s. proposals. we will be speaking to michael froman. ♪
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david: this is bloomberg markets: balance of power. the u.s. chief negotiator
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describes the fourth round of nafta talks in washington. mostlaid out the did -- aggressive demands to date. these may prove unfeasible for canada and mexico. moving over the talks are recurring threats to walk away from the negotiating table. we will see what happens. andave a tough negotiation it is something you will know in the not-too-distant future. we will be discussing defense . shery: turning now is the trade representative under president obama. thank you for joining us today. do you foresee president trump giving that six-month notice nafta?ie needs to leave think right now > -- think right now the trump
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administration is trying hard to negotiate a different nafta forward. if they can achieve that, my sense is they would like to try to achieve that. if they cannot, i think the president has made clear they are willing to walk away from it. david: you are ambassadors -- you will need their approval to do this. mexico see the president signaling that he is not interested in staying in this deal, does that change the way they approach it? michael: there's talk going on as to what will stop the president from pulling out. they do have that ability, but congress can do things to make it more difficult. coming back to the threat of withdrawal, the president is trying to have leverage over his negotiators. there is a risk that it creates instability and the other markets, and in mexico in particular, that can prove quite
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detrimental. see pushbackld from congress, but we could also see pushback from the private sector. with the enough to hinder president trump from completely withdrawing from nafta? michael: so far, the president keephown willingness to going. the business community has been relatively quiet until recently when they have begun to speak out against the trump administration's trade policy, and we will see how much impact of that really has. he is going to through normal person -- through normal procedures of working with the business community to try to craft an agreement. in theseu have been negotiations. you know the chief negotiator here. how difficult is it under those circumstances to tune out the political noise we're hearing a lot of? michael: is challenging but that is what has to be done.
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now we know where they stand. the other countries know where they stand. the challenges these other countries have politics too. particularly in mexico where elections with the u.s. has not been particularly popular . their ability to make major concessions is demanding and limited. shery: you have been part of these negotiations. last week preparing for an over -- oval office meeting, we saw the commerce secretary was added to the delegation. -- traderesent representative was removed from the delegation. is that normal for this to happen? is this a strategy?michael if there'sknow anything strategic behind it. there are a lot of people in the administration who are involved in trade policy.
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has the capability to negotiate. they are playing an absolutely central role in this process. begs ai think it different question. who is in charge of these negotiations? your successor is confirmed in an office. you have the secretary of commerce playing an intra-goal role. -- in trickle role. important role. michael: the other countries will try to figure out who they can talk to and influence. at the end of the day, it is the u.s. team negotiations and they will have the pen on whatever the new agreement looks like. of course, in this case, there is only one person who ultimately matters. that is the president. he has shown a willingness to go his own -- to go against his own team are negotiators when he
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sees the world a bit differently. shery: you have called the decision by the president the biggest strategic blunder in recent history. a lot of people saying that negotiations are what was lost withdrawing. has the response of? -- how do you respond to that? michael: -- they will get the benefit of market access from places like japan would have been closed to exporters for some time. rhis will curb ou agricultural difference for some time. the eu is negotiating trade across the world. have beenothers negotiating trade agreements. australia. we run the risk of being left on the sideline.
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other countries get preferential access and that will hurt jobs and workers and farmers and ranchers in the united states. shery: thank you so much for your time. distinguished fellow at the council of foreign relations. review comments from president trump and mitch mcconnell when they begin. let's go to mark crumpton with worst word news. says a white house study cutting the tax rate to 20% would increase average household income by $4000 a year. this was released today by president trump's council of economic advisers. it says, that wage growth would take several years to go into effect. spain's government may begin the process of stopping the rule in catalonia. they rejected the response to declare independence. earlier today, he told the prime
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minister he has a mandate to declare in the end it -- independence but wants to talk first. -- the eu foreign ministers said in a statement the block is reviewing defense cooperation over the violence. it also said all credible of human rights malaysia and abuses must be thoroughly investigated. more than 500,000 have pledged to bangladesh since august. pope francis addressed the united nations food and agriculture organization and demand world governments take concrete steps to ending world hunger. speaking at the meeting in rome, the pope said nations need to resolve conflict and climate change-related disasters that leave it to hunger. the number of chronically hungry people had risen after
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a decade of declines. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. this is crumpton, bloomberg. david? up, the regime in venezuela captured 17 of the 23 state government ships. why the president is saying this only happens in venezuela and the opposition party is an agreement. this is bloomberg. ♪
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david: welcome back. i am david gura. shery: i am shery ahn. american express trading lower
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and on pace for his worst day in two months. joining us is abigail doolittle. what is the story? abigail: the supreme court is seeing an accusation case that the doj brought earlier. they lost the case. 11 states have brought it to the supreme court. the supreme court decided to whethert and adheres to american express can sort merchants from allowing merchants to suggest lower cost alternatives. basically, when you go to a restaurant and try to pay with tellsnd the restaurant you to pay with a different card because the fees are too high. they want that to happen so the retailers are not paying high fees for american express. what isn't a surprise is the fact that the supreme court in is a surprise is the fact that the supreme court is
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hearing its. it is the first double-sided platform case. unless i do have consumers, and the other side you have -- thets the hope is merchants. right now, amex is having a great year, the best year since 2013. it is unclear what the implications could be for the profit outlook. if the case will be heard early next year, the ruling will be in june. other trading companies are trading lower but i think it could help them. the most interesting implication could be for big tech. alphabet, facebook and amazon in terms of their double-sided platforms. the retailer and the consumers. this could provide a precedent of some sort. thingll be an interesting to keep an eye on. hit taking a bit of tha during the worst in two months. david: nicolas maduro claims
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victory last night. the victory dramatically defined polls and widespread game for the opposition. the head of the opposition expressed concerns that the results were manipulating, saying the world believes the story that has been told. let us start with the reaction to the voting we had yesterday. surprised by the results. in fact, it was flipped from our base case, which was based on the results of the national elections in 2015. three. even in the conservative scenario the opposition could when 17 states. we were surprised, but there was a lot of reports leading up about situations with voting centers being changed which could have caused confusion. also questions about how
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supporters would participate in this election. there are murky circumstances around the vote. the chart is -- is showing yout the slide in the bond. they took a hit after. there are claims of fraudulent voting. your call was that despite the voting -- and this was before we saw polls -- that political or economic environment should not be affected. would you still hold on to that call or would you change a given the outcome? >> in terms of are we going to see a big change in economic policy or in the political climate because of this or his approach to managing the situation, that is unlikely. given there are these questions about legitimacy is if there seems to be evidence or a foundation for that, then we could see i a stronger response domestically.
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we have the eu considering willions this week, and we see what they come out with. likely to start individuals. it could increase pressure internationally if there are doubts about how the elections were conducted. david: as we look ahead to see what the eu might are might do, what have we learned about what the u.s. sanctions have implemented? in terms -- >> in terms of individual less than the financial sanctions but he was put in place. they have not necessarily been tested but there have been reports about those affecting interesthe previous payments because there are more compliance checks going on among financial institutions. i think it is cause concern about having dealings with venezuela. even though in practice it only affects bonds that are already existing and trading. shery: we're hearing reports
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ey are planning to the rescue venezuela. how financially taxing will be to rescue venezuela? >> it is a difficult>> question because we do not have a lot of the data on the economic situation. even for them to try to design a program, they have to get there and see what the state of affairs is and what data exists and is not being published. or what the situation is like. our long-held view is any kind of situation where you are going through a debt restructuring would involve multilateral community but also a complicated situation from the perspective of any bondholders and any groups of creditors out there. david: what has the ramifications of the spin on other countries in the region? in columbia, they said they're worried about it's coming back in mass.
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casey: i think it is a question of whether he will have migration -- david: here's the president of the united states. pres. trump: mitch mcconnell, who has been a friend of mine for a long time, long before my world of politics. early into his world of politics i think. but we have been friends for a long time. we are probably now, despite now we read, we're probably closer than ever before. the relationship is very good. we are fighting for the same thing. we fighting for lower taxes, big tax cuts. the biggest tax cuts in the history of our nation. we are fighting for tax reform as part of that. we are getting close to health care. they will come up in the early to mid part of next year. i think we already have the votes. lethal confident we have the feel confident we have the votes.
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republicans and democrats are working hard together to do and intermediate plan, a short-term plan, because obamacare is an investor. the reason premiums have gone up. the deductibles have gone through the roof. is terrible. unless you really have a problem, you will not be able to use them. been working together long and hard. we think we are in good shape hope tobudget, and we be in good shape again. the largest tax cuts ever passed in this country. it will spur business. you look at what other countries have done and we are competing with them. 15%. ireland will be reducing corporate rates from 12% to 8%. we cannot be a 35% in think we're going to remain competitive in terms of companies and jobs. we worked on that. i was very honored to see a man
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that i have had a lot of respect for. the head of fema. us an a plus. i see it just came out. james d witt, the fema director of the administration, give us an a plus or how we responded to the hurricane aftermath. all the hurricane, and that includes puerto rico. t,want to thank mr. wit wherever she may be now. i really appreciate it. you take it out of the world with theand he was clinton administration and i am sure remains loyal to the clinton administration. i hope he does. just to finish off my relationship with this gentleman is outstanding. it has been outstanding. we're working very hard to get
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the tax cuts. work and geting to health care completed. i will be surprising people without economic development bill later on, but i haven't even told him because i want to focus on tax cuts and other things. one of the unspoken element that we discussed, we have a great justice into the united states supreme court. he will be outstanding hopefully for many, many years. something people are not talking about is how many judges we have had approved, whether it be the districtappeals, judges, we have tremendous under review. the democrats are holding them up beyond anything, beyond comprehension they are holding them up. frankly, they have terrible, terrible policy. terrible policy. and perhaps they are not even good politicians but they are good at obstruction. i looked at some of these numbers.
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between the judges, and i want to say we will set records in terms of the number of judges. if you read the wall street journal, i have to give them a little bit of a writer, i will not mention names, but who has really been a really fair person. wrote an article or editorial in a sense saying how well we are doing with judges and appointments. i think it is one of the big unsung things of this administration. in addition to the fact that we have had a lot of legislation passed on the v.a. and other things. untoldge's story is an story. nobody wants to talk about it. when you think about it, mitch and i were saying that has consequences 40 years out, depending on the age of the judge, for 40 years out. approved, manyn are in the pipeline. the level of quality is extraordinary and i wanted to say we are working very closely
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on that also and getting really great reviews from those people and in many cases of scholars that have been studying it. there has never been anything like what we have been able to do together with judges. with that, i would like to save -- i would like to have mitch say a few words and we can do a question and answer also. thank you. very much, mr. president. i want to underscore what the president said. we have the same agenda. we have been friends and acquaintances for a long time. we talked frequently. we do not give you a readout every time we have a conversation. but frequently we talked. on the weekends, about the issues before us. obviously, passing the budget, which enables tax reform and tax comes next and the supplemental to take adequate care for those who have been harmed by the natural disasters we have been afflicted with
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lately. uniquese, the senate's role that a lot of people forget. we're in the personnel business. there are 1200 of the president's nominations. the house is not in this business. we are. significantost thing this president has done to change america is the appointment of neil gorsuch to the supreme court. it is not just the supreme court. there are a lot of vacancies as the president indicated. jan, conservative. always a conservative about the judge, we're talking about the people the president of going -- of points to the courts believe the role of the judge is to try to rule based on what the law says. they hoped the outcome would be. scalisesteve
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says if you're unhappy with what you read you're not a very good judge. theystices don't wear red, don't wear blue, they were black. those are the people of the president is sending up to the senate to be confirmed. many of them, as he pointed out, younger. they will be on the bench for a long time and have a great deal to do with what kind of country we have far into the future. legislatively, the top priority is tax reduction. i think with the president and i would both like to say to you today, contrary to what some of you may have reported, we are together totally on this agenda to move america forward. what is the timetable for tax
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reform? speaker ryan does he want to get the end of the year. would you be ok if tax reform were not passed until next year as opposed to this year? pres. trump: i would like to see it be done this year. we will not go a step further if we get it done, that is a great achievement. it took years for the reagan administration to get taxes done. i have been here for nine months. i can say the same thing for health care. if you look at obama, first of all, if you look at clinton they were not able to get it done. if you look at other administrations, they were not able to get it done. longdent obama, after a time, was able to push it through. but he pushed through something that is failing badly. ,gain, we're meeting democrats republicans, they are meeting right now i'm working on something special. i have to tell you i really believe we have a good chance.
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i think mitch feels the same way. hopefullyes done fairly long before the end of the year. 20 as with the president said. the goal is to get it done this calendar year but it is important to recover obama signed obamacare in march of year two. he signed dodd-frank in july of year two. the goal is to get done by the end of the year. just to finish up for mitch, and we are nine months. we could have a long way to go, but that is ok. do you still have confidence in -- [no audio] you set the only problem i have with mitch mcconnell is after --ring the onslaught replace hearing repeal and replace for seven years and failed.
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passion never happened. we have beenagain, doing health care for seven months and probably six months if you think about it, because we started -- probably a total of six months. others were two and a half years a much more than that. others were eight years and they did not get it passed. longman will get it done before anyone else and i think it will be a great health care. as far as tom marino, he was a very early supporter of mine in the great state of pennsylvania. he is a great guy. i saw the report and we will take it very seriously. we will have a major announcement probably next week on the drug crisis and on the opioid massive problem. i want to get that absolutely right. this country in the world has a drug problem. the we have and we will do something about it. i will have a major announcement on the problem next week. we will be looking into tom. do you support the plan by
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people who previously served in your administration, such as steve bannon, who -- do not support your agenda. pres. trump: i have a good relationship with the steve bannon. i like steve a lot. he is doing what he thinks is the right thing. some of the people he may be looking at, i will see if we can talk them out of that because wrinkly, they are great evil. what mitch will tell you is maybe with the exception of a few, and that is a very small few, i've a fantastic relationship with the people in the senate andith the people in congress. our house of representatives. i have a great relationship with political people. if you read the papers, you would think i am on one island and they are another. it is not the way it is we have a fantastic relationship and i am friends with most of them. i don't think anyone could have
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much of a higher percentage but i am friends with most of them. i think they like and respect me. understand, the republican party is very, very unified. when you get things approved you have to go -- we have to go have nohell because we democrat support. we'll have a vote from the democrats. as an example, massive tax cuts. we may not get any democrat votes. we also make it three or four, ellie mae get -- for massive tax cuts. highest tax country in the world and we will get no tax support. their instruction and wants to do -- they are obstructionist and wants to do badly. [inaudible]
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pres. trump: we are going to look above very closely. well, he is a good man. i have not spoken to him. but i will speak to him and make that determination. to do whatit is 1% we will do, i will make a change. one second, yes. we are going to be doing that next week. you know that is a big step. by the way, people have no understanding of what you just said. that is a very, very big statement. important step. together that step, a lot of work has to be done. it is time consuming work. we will be doing it next week. ok? did you have a chance during your lunch to discuss the

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