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tv   Bloomberg Markets Balance of Power  Bloomberg  October 25, 2017 1:00pm-2:00pm EDT

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david: the devil is in the details, when it comes to tax reform. secretary wilbur ross said he would not be surprised if congress were to tweak state tax reductions. we will talk with your congressman thomas reed. -- new york congressman thomas reed. the feud between president trump and senator corker escalates. unlikely yellen's advocate. what does trump's meeting with the incumbent fed chair mean for her chances of being renominated? ♪ david: gop leadership is attempting to put the attention squarely on tax reform. this as internal stats split the party.
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senator jeff flake had this to say. sen. flake: instead of addressing hurt, goes to look for someone to blame, there is perhaps nothing more devastating to a pluralistic society. david: what does this mean for the future of tax reform? joining us now is our chief washington correspondent, kevin cirilli. the senator has been very thoughtful about conservatism and the future of the republican party. what did you make of what he had to say? kevin: there has been a lot of controversy surrounding senator jeff flake as well as senator bob corker. they have both been incredibly critical of president trump. via administration is pushing back against senators corker and flake. we saw from senate majority leader mitch mcconnell, that he and hastaken debate said this is not going to impact policy in terms of tax reform.
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shery: president trump making it clear that he has the support of the gop, tweeting the meeting with republican senators yesterday outside of flake and was -- with standing -- was a lovefest with standing ovations and great ideas for usa. kevin: in terms of policy agenda, it does get interesting with a handful of dominant republican senators, openly criticizing the administration, like senator mccain. the lister --ke, the list goes on and on. i asked how he would describe yesterday and he described it as epic. i think there is a populist tension for the soul of the
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republican party in terms of how this is going to play out. david: on the issue of unity, some headlines crossing the bloomberg, i know president trump is making his way to dallas, but he says he does not blame senator flake for leaving. houthi -- who is going to be able to find that unity as the tax reform process continues? kevin: the house is likely going to vote on the budget, tomorrow. that is allowing lawmakers next week to unveil the specifics of a tax policy. congressman kevin brady of the tax-writing committee staying at a christian science monitor breakfast. asset managers are not going to is when weember 1 are anticipating details of the tax plan from the house of representatives. commerce secretary wilbur ross said that tweaks to state and local tax reductions are still
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on the -- deductions are still on the table. how they are going to pay for the tax plan, we will have to wait and see until they get to the nitty-gritty of it. if you look at things like the political volatility index and the political theater from yesterday, not really making an impact on investors, so to speak. investors weret carefully watching the tax plan, how they are going to pay for that tax plan and the fed chair race. shery: thank you so much, kevin cirilli. stay with us on the latest, coming out of the gop. we are speaking with arizona senate candidate kelli ward. we will be speaking on jeff flake announcing he will not be seeking reelection and her chances of taking his seat. the get a check of our markets. julie hyman -- let's get a check of our markets. julie hyman is here with us.
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earnings in the case of today, coming in below estimates, particularly from the larger cap stocks. it seems to be more with -- it seems to be doing more with anticipation. we're going to start to see more of them after the close, tomorrow. if you take a look at the fangs, the stocks that have been driving a lot of again, this year -- lot of the again -- the gain, this year. faangu look at a index of stocks. i mention that these stocks have contributed a lot to gains, this year. there is a breakdown of their contributions.
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they have accounted for almost half of the gains in the nasdaq 100, specifically apple alone accounting for 17% and facebook with the next biggest chunk at 9.7%. netflix is the one that has come out with earnings so we still have some potential catalysts. the earnings movers and the akamai to, we've got the upside. that was a group that had been lagging. however, some of its other units like cloud security were a bit weaker. ina, beatingllum estimates, raising its forecast. however, some analysts are questioning the quality of that beat. it could be somewhat responsible
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for the decline in shares. as we talk about these growth stocks, it brings me to a debate going on. david einhorn of greenlight capital and his latest investment letter is wondering if value investing remains viable after long outperformance of growth versus value. an example, this year, alone. the russell 100 value in white. you can clearly see the outperformance of growth stocks. einhorn essentially questioning whether a value over growth is going to continue to be the way to go and if in the end, he will be validated. david: the debate continues. house leaders expected to unveil the long-awaited tax bill next week. what should we expect? we will talk with a member of the house ways and means committee, congressman tom reed
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from the 23rd district in new york. this is bloomberg. ♪
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shery: welcome back. this is bloomberg markets: balance of power. david: let's check in on the bloomberg first word news." president -- has been hospitalized. two presidential aides also confirmed the news. they are reportedly suffering from neurological problems. he had been in -- involved in a five-month corruption scandal. votel's lower house was to on if the president with standard the country's supreme court. kevin brady says before a final
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tax plan is presented, he expects to deal with republicans from high tax states who expressed concern over local and state tax the directions. state -- state tax deductions. coming up in a few minutes, we will speak with new york congressman tom reed, who sits on the house ways and means committee. canadian finance minister says that the canadian finance the canadian -- finance minister says -- we have the u.s. as our largest trading partner. we do need to have a continuing strong relationship. many things we trade with the thatd states are things are at a fairly low tariff rate.
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mark: he says nafta is incredibly important for canada. domino roll pioneer fats is dead. diedoroner says he tuesday, of natural causes. he was best known for his hits, blueberry hill and ain't it a shame? news, 24 hour was a day powered by more than 2700 journalists and analysts in more than 120 countries. shery: thank you. >> are showing in the grand old party, increasing concerns this division could weigh on their .egislative agenda house leaders are expected to roll out the bill, next week. one of the main points of contention will be the fate of
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state and local tax deductions. joining us now is one of the key lawmakers on that issue, congressman tom reed, a republican from new york. congressman, thank you for joining us. you have been speaking with chairman kevin brady. what are the options on the table? rep. ward: i have been working on this issue -- rep. reed: i have been working on this issue and i think there is a compromise position that is going to take care of 99% of the people in the district we represent and come to a compromise that allows us to advance the goal of tax reform. david: i have a chart on the bloomberg, a map of the u.s., showing the country by congressional district, highlighting the districts that have above median state and local tax deductions.
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how big an issue is this and what kind of compromise are you looking for? rep. reed: this does impact people's bottom line. , we you look at our income want to make sure that when we do a solution like on a credit, move it from a deduction to a credit where you get a dollar for dollar reduction in tax liability. that goes a long way to alleviate this issue, when it comes to people who are making these payments and filling out tax returns. shery: will you vote for the budget regardless of the deductions or do you need more clarity? rep. reed: i am confident we can move forward with the budget. the budget is the tool to get us to tax reform. i am supportive of the budget. i understand folks may be using the budget in order to leverage a position. from my perspective, a compromise is coming.
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a compromise where 99% of the american people are taking care of. -- taken care of. is a victory,f not a defeat. the overall goal is to reform that will get people more money in their paychecks. david: i spoke with your house ways and means committee colleague, diane black. she talked about how a lot of these dials are still being moved, when it comes to the 401(k) part of the tax code, for instance. is it your sense that you have autonomy to do that? how worried are you about the reach from the executive branch over to the legislative branch in the form of a statement that says something is off the table? rep. reed: we had a meeting today with gary cohn.
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, getting together and having a conversation with the white house. we are working hand in hand to come up with a solution that works. we are not about getting yes, we are about working for the people. i am not so concerned about that. they have to be part of that process because the president has to sign it into law. i am not overly concerned about that. the salt deductions are repealed or removed, what -- rep. reed: the people that are just taking the standard induction, they would have access to a credit. i amis why it is an idea trying to push, because that means a dollar for dollar reduction in their tax bill at the end of the day, that everyone in those income brackets, maybe $300,000 and below.
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we had discussions of $400,000 of income. that a lot of people that will get a tax reduction in their tax bill to the american government by having the credit accessible to them, regardless of whether they itemize their deductions or take the standard induction. that is their money and they will use that money to grow this economy. david: thank you very much, congressman thomas reed from new york, joining us from the capital. he is on the house ways and means committee. it looks like we are going to get a playback. remarks president trump just made a few moments ago. >> it is a disgrace. it is a very sad commentary on politics in this country. i don't think so. we have great unity in the republican party. they have to do their thing. we have great unity.
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when you look at what happened, we had virtually every senator, including john mccain. we had a great conversation, john mccain and myself, about the military. i called it a love fest. maybe it was a love fest. standing ovations. if you look at the democrats, with bernie sanders and hillary clinton, that is a mess. there is great unity in the republican party. i think it is sad, but i think to a larger extent, i think the media causes a lot of it. fake stories are being reported. i think to a certain extent, maybe i can blame the media, but politics is a rough business, no question about it. i think the republican party has a pretty good unity.
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when i look at that room, yesterday at lunch and you reported on it, very well. you gave it a good report. the fact is, there was tremendous unity in that room. we are really unified on what we want to do. we want tax cuts for the middle class. we want tax cuts for businesses, to produce jobs. there is great unity. he was against me from before he ever knew me. he wrote a book about me for my ever met him or heard his name. -- his pollbers numbers in arizona are so low that he could not win. i don't blame him. before he ever met me, before the campaign, he came out with this horrible book and i said who is this guy? the first time i saw him on
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television, i had not really been -- nobody knew me in terms of politics. the first time i saw him on television, i said i assume he is a democrat. they said he is republican and i said that is impossible. his poll numbers are terrible. he has done terribly for these ,- the great people of arizona a state that likes donald trump very much. he would never have won. he is way down in the primary. he did the smart thing for himself. this way he can get out gracefully. he is saying that because he has nothing else to say. i do think this. i wish him well. i believe he is going to do the right thing for the country. he is going to vote for tax cuts because we desperately need tax cuts to put our people back to work. we need tax cuts to be able to compete with other countries.
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i believe that bob corker is going to do the right thing, also. i can't hear you. say it again. senator flake did vote with me. it was about 91% or even more than that. i think i will be boosted, in arizona. i think the fact that he did it the way he did, i am very high in arizona. i love the people, they like me, they like security at the border. i think i am probably helped greatly in arizona by what happened.
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i don't think they would do that. i know that they want tax cuts. they know we need it. we need it for the people, the middle class. we need it for jobs. i know them well enough. i don't know flake very well. i think they would do it. i think they would feel they have to do it, for the country. i think we are going to get some democrat votes. i have not started the process, but i believe there are certain democrats that if they don't cuts,or these massive tax or business, for jobs and the middle class, they will lose their races in 18. press makes me more uncivil than i am. people don't understand. i went to an ivy league college. i was a nice student.
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i went very well -- did very well. i am a very intelligent person. creates ae press different image of donald trump than the real person. i think it is always ok when someone says something about you that is false, i think it is always ok to powder -- to counterpunch or fight back. i wanted to end that, quickly. 401(k)s are very important because that is one of the great benefits to the middle-class. i did not want that to go too far. that is why i ended it quickly.
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is and maybe we will use it in negotiating, but that is one of the great things. there are certain elements of deals you don't want to negotiate with. and i think kevin brady is fantastic, but he knows how important 401(k)s are. i think the uranium sale to russia and the way it was done was so underhanded, with tremendous amount of -- amounts of money being passed. that is watergate, modern age. say it again, please.
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david: let us president trump making some comments outside the white house. several events this afternoon, including a rnc fundraiser. he was talking about senator flake, making the announcement he will not be running for reelection. also talking about the future of the republican party. president trump also talking about 401(k)s, tweeting to taking off the table as negotiations continue because he wanted to end that one quickly. we will continue to monitor what the president is saying, for more details. one other bit of news. german institutions are set to be reducing financing to turkey. that includes a commerzbank said to alter its relationship with some turkish banks and the germans that is going to vote
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against -- shery: we have other news crossing the headlines -- crossing the bloomberg. -- that would make this the second-biggest financial group we have seen some of these mergers and acquisitions in the past. we are now seeing the norte and nteracciones -- interacciones. david: house republicans and democrats making some recalculations. former state senator kelli ward who challenged senator john mccain. gop thinks she is close to the steve bannon wing
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of the party. kelli ward joins us now. what changed for you, yesterday as you chart a path forward. -- for you, yesterday as you chart a path forward? rep. ward: a big announcement knowing that a sitting senator is deciding not to run. i think i played a role in that, along with president trump and the people of arizona who are not happy with jeff flake's stances on tpp, his support for merrick garland, all of those things led to the culmination yesterday where he decided he was not going to run and i do think it clears the way for me a make america great again candidate, a person who supports president trump and the american first agenda, to get to washington, d.c. and get the job done, the job that arizona and
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americans are crying out to get done. shery: president trump has yet to throw his support behind you. when was the last time you met? rep. ward: i certainly hope he will come on board. it was wonderful to get a supportive tweet from him, talking about jeff flake and his weakness on the border and crime. we've got the support of the important people, the people of arizona. energized,ady, motivated to make this conservative change. i think they were the biggest winners, yesterday. they win with jeff flake out of the senate because they want a strong conservative voice, someone that has a optimistic view of the country for -- view of the future for our country. i heard in senator flake's comments yesterday that he has -- that he has some regrets about the political process.
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what type of all of branch to you intend to extend to those who supported him and are more toward the center than you are? is there room for them in your camp? rep. ward: there is room for everyone, because my message resonates across the board. lower taxes, less regulation and following the constitution. that resonates not only with conservative republicans, but middle-of-the-road people. liberty leaning type people that we have that are out there, even democrats who have seen the failures of the democratic party and what they have brought upon them. the message is clear. the time for change is 2018. republicans will maintain their majority and gain seats, just as the president was seeing -- saying. againstmocrats who vote tax cuts, who vote against the middle class, against bringing jobs back to the united states, they are going to fail in 2018 and we are going to have a --
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have an even stronger majority. shery: senator flake -- senator flake accepting president trump's behavior. he said leadership knows that most often a good place to start when assigning blame is to look somewhat closer to home. not knowinglys condone this. america ise said better than donald trump and donald trump has proven he is putting america back on track. the data was soaring and unemployment rates are declining. the use of food stamps is way down. america is coming back from the doldrums we were under, under the obama administration. that is because of donald trump's leadership and the people who support him. jeff flake has it wrong. thepeople inside
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washington, d.c. bubbler to disconnected from the real people out here. the forgotten man and woman are awake, and that is why the changes are occurring. david: how cognizant are you of there being a lot of national attention on this race? steve bannon to supporting you. are you all worried that by attracting too much national attention that you might alienate or lose touch with the arizona-based? ms. ward: i'm very connected to the arizona voter, across the board. i'm not going to lose that connection. the people across the country understand that those 100 senators definitely affect each and every one of our lives every day. people iny the arizona can vote for me, many across the country know that when i get to the united states than it, i'm going to be -- senate, going to be voting for them. shery: we continue to see this division in the republican party . the establishment against the populist. we know that steve bannon last week went to your fundraiser. one sort of impact will this
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have on the elections next year? way isd: i think the clear. this positive message we have is resonating across the board. having laura ingraham and steve bannon in arizona endorsing my campaign and my effort to get to washington, d.c. was wonderful. i think we're going to hear a huge resounding blow as the people who have been in washington for much too long, many for decade after decade after decade with created the stagnation and the division that exists between the parties and within the parties, that they are going to go in a new generation of gop leaders is going to come into town and do the work that hasn't been done. david: what is your message to robert graham or those thinking about getting into this race? do you welcome competition and what do you think they would bring to table? know if anyone't else is going to get into this race, but i can tell you that we have paved the way to win.
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i have got an amazing professional team, i've got grassroots supports across the entire state of arizona grows daily. i've been able to amass a lot of fund-raising efforts to be able to win this race. my message resonates, and the momentum is huge. we are ready to win. we are poised to win. i don't think we need other people in the race, but you never know. it's politics. arizona get kelli ward joining us from phoenix, arizona. shery: republican lawmakers pushing for a tight timeline in the tax overhaul. house speaker paul ryan says he wants to pass a bill by thanks giving. the rush move is similar to the gop's plan to repeal and replace the affordable care act. that didn't work, and with the tax bill shrouded in secrecy and hamstrung by party infighting, what chances does it have? joining us is douglas holtz-eakin, the former director of the congressional budget office. this thanksgiving deadline seems
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to be very ambitious. any chance that's going to happen? mr. holtz-eakin: a good chance, unlike the repeal and replace effort. the house has gone through two rounds of tax reform under dave camp, so the staff is been through this and the members of the ways and means committee have been through this. they have lots and lots of expertise and they've gone through some the landmines already. i expect that when they put the bill out next week and they are looking at something like next thursday, they will have a solid majority behind it already. floor, i think there's a good chance they will hit the deadline. david: i want to see if you've heard this or seen it as well, the way that many republicans talk about the budget is as a jumping off point to tax reform. does that were you at all that it's not getting the kind of consideration it has in the past? it's being seen as a means to an end. mr. holtz-eakin: it happened twice this year. the first time was the make of them to repeal and replace
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announce a step towards tax reform. i think that can last very long. they inherited from barack obama's and administration a dreadful physical outlook and i think many people are concerned $1.5 adding another trillion to the deficit. think that's a fair concern in the real issue is how good will of tax reform be? if is solid progress reform, it's probably worth it. shery: it feels very opportunistic. they want to get the budget through, just in order to get to the next phase of things. when you look down the road, one of the problems they are going to face? mr. holtz-eakin: the financial problems are on the spending side. reverend growth of social security, medicare, the affordable care act. as health care costs continue to rise, i'm a very realistic to think they will go back at that this year. we've seen what we're going to see on health care front. let's turn to tax reform. we are desperately in need of doing something.
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people who work full-time, full-year and 2016 got zero raises, and we continue to see the ip go offshore and production. sure. trillions of dollars of americans earnings parked offshore, that's untenable status quo. take care of the tax problem and then get back to dealing with the budget. david: we spent many hours talking about in the far right and the republican party. they expressed his satisfaction we are not seeing deficit hawks like we usually do. where are they? have you noticed that conversation about the deficit has quieted? mr. holtz-eakin: it's remarkable. if you go back to the house passed american health care act, that was a $1 trillion tax cut in major reform of to entitle the programs. by traditional republican standards, it was an enormous success and they did it in four months. he was greeted with nothing but criticism. i think that's the point was deficit hawks took a step back and thought what is going on here?
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as a matter of practical political reality, we are not if the economy is growing better. people are insecure, they're not going to be saying do what you want. i think a top priority is to get better growth, we have to get that going. david: senator -- shery: senator susan collins voted against repealing the estate tax before. can we see opposition from her or senator bob corker? we know he's a deficit hawk. mr. holtz-eakin: i think we have a pretty good feel for where the house is. they put out plans before. the senate is a different issue. as we know, it's harder to get into the senate with a tiny margin for error. we haven't seen the senate finance committee do the same kind of things the ways and means committee did. haven't seen them coalesce around a single plan. the senate is a much more uncertain territory. couldy number of people poke their head up and say i'm not happy with a piece of this
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and they will change the bill. get your sense of this argument going on in washington and cambridge as well. mr. holtz-eakin: [laughter] summers rainfall krugman into the ring as well. one of the consequences of that for independent economic research with a value of the stature of independent economic research in washington, d.c.? do you see the economic merits of the fight were argument they are having right now? mr. holtz-eakin: i do see larry summers, and argued that lowering corporate is the closest thing you define and then arguing with kevin that you should or -- you should lower rates. that's just politics. it's important to make about the consequences for hiring in the u.s. and paid a matter in the u.s. our that's the route to real success for the middle class. it's way more important than anything in the tax brackets or standard deductions. what's not on the table is what really matters.
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and it is fair that to have that debate. that's the crucial issue in america right now. holtz-eakin,s interconnection form. the debate over local tax elections continues. governor chris christie from new jersey weighs in on the future tax reform. my interview with governor christie, coming up next. this is bloomberg. ♪
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david: this is "bloomberg markets: balance of power." the euro reaching the weakest level on record after a bloomberg report that the german government is wielding its influence international to mehlman institutions to restrict finance. bank inpean investment
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the european bank for reconstruction and developed. pretty astonishing move. shery: time now for the stock of the hour. avocado pricing, hurricane, norovirus, rats, where my going with this? getting hit by a host of problems last quarter and shares her tumbling today. julie hyman has the details. what's going on with this company? julie: all that you sent. articlesw from all the about millennials buying avocados instead of houses, avocado pricing has gone up which is been a problem for margins. the hurricanes close to some of the restaurants and it was a norovirus outbreak at a restaurant in virginia and reports of rodents falling from the ceiling at one of its locations in texas. if this confluence of events the really combines to make the quarter a big miss. earnings-per-share were 69% --
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$.69 and there's one thing i didn't mention there was a bill that came to for a hack attack at the chain. that $.69 is net of expenses and tied to that, analysts have been looking for $1.53. you see what's going on here. for the's at stake company, and whether it can indeed turnaround. , does notsome shares like there's optimism today. there's also a lot of short interest in the stock. those folks have done well today. if you take a look at the bloomberg, we have a chart of the short interest versus the shares. short interest has been climbing as shares of gone down. in this implies there's not a lot of optimism built in to the future for aaa. also want to flip over what we are looking at the bloomberg to look at the price-to-earnings ratio. something else investors are waiting that it is relatively expensive versus peers, resist shake shack among the fast
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casual group is one of those that is more expensive on this particular basis. accordingthe outlook to those who watch the stock is not terribly bright. david: bill ackman was involved with this company. managed to get the folks of his choosing on the board. where does he stand? julie: about $120 million lighter than he did yesterday, which is how much he has stood to lose in the past 24 hours. also for the company's executives, who in the past got compensation tied to the stock price, we're talking about $225 million of how much of stock appreciation rates they held, now they could be worthless. david: julie hyman with the chipotle update and the stock of the hour. republican unity or tax reform hit the stack when it comes sustainable tax deductions. that would be affected is new jersey.
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i sat down with chris christie and spent him about what he wants to see from washington when it comes to tax cuts. you have to lower the rates enough so that a high income ceiling new jersey gets the benefit comes in as a wash to us. statecated against the and local tax reduction when iran for president. even as governor of new jersey, i don't think the federal government should be subsidizing the huge growth of government at the state and local level. but, what has to happen in return is a lowering of rates enough so it really high income states where there's a high cost of living like new jersey and new york, california, others, that the lowering of rates basically washes out the loss of that. remember and that two thirds of the people in my state don't even itemize. they are not even getting the benefit of that state and local deduction in their federal returns because they don't itemize. it can be done the right way. you have to lower the rates enough to make a relative wash.
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david: you are the most outspoken candidate about addiction opioid abuse. you chair the president's commission on it and he is set to deliver a speech tomorrow. what do you want to hear from him? there's been frustration that he hasn't declared a national emergency. when are we going to get a drugs are in place and when our politicians are at large when to take this as seriously as they need to? i hope they will soon. i spoke to the president about this for years. he understands and cares in the actions you will see them take in the next few days ago to make it very clear how much he cares about this issue and what he's willing to devote to it. they're always going to be people who argue about this, but addiction is a disease. it's a chronic disease and we need to treat it that way. we need to stop making the moral when theyof people -- start trying drugs, what are we going to do about it? let them die? 142 people are dying a day in this country from drug overdose.
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that means we have a 9/11 every 3.5 weeks in america. had terrorist organization killing 142 americans a day on our soil, how much would we be willing to spend to stop them? anemia to speak about it in those terms. the pain of the suffering is causing our fellow citizens, and we need to step up aggressively to try to go after. i believe the president is going to do that and i believe he understands the issue and that's when he asked me to chair this commission because he knows my feelings about it. if he is looking for a minimalist, he would not affect me. i'm very confident in the president and i think tomorrow, you will start to see the real specifics on what a trumpet administration is going to do to start to move this back. this problem is going to get worse before it gets better, it will take time to fix. david: one wonders what can be done at the federal level. there can be a national conversation about, but as you look at how about this problem is, what can the federal government do to curb it?
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or will it be sold at the local and state level? gov. christie: i think it's both. for doctors who write these prescriptions, they don't have to have any continuing education on opioids and their addictive process how to treat people with a, the da can finish that. they can say no more license to write these prescriptions unless you take certified continuing medical education to educate yourself on how you are killing people with this stuff. united states consumes 85% of the world opioids. we're 4% of the world population. what are we doing? i think the da can step in and be much more aggressive in terms of regulating what physicians are doing and writing these prescriptions. the nationaln to institutes of health work with the farm of history to come up with more non-opioid pain relief and come up with more medication assistant treatment for addiction. , young to belevel getting into the treatment issue. you got to continue to work on education at the school level.
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it needs to start a middle school. kids are getting addicted in middle school. great.h, seventh, eighth if we don't start talking about it in sixth, seventh, eighth great, we whittle has will, they are already lost. david: what's next for you? there are a lot of vacancies, could we see a drugs are chris christie? gov. christie: i will be the drugs are. now forn a government 16 years, eight years of the u.s. attorney. i loved it. but i think what's much more likely for me is to go to the private sector and start making some money. we were out to dinner with some friends and they asked if i was going to washington and my wife interrupted and said not so cris reaches his financial potential. i have two more children to put through school, to have gone through and two more to go. i have some wood to chop. i won't rule out going back in the government, but out another title.
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if i'm asked to do something where i think i can have a real impact, after being governor, that's what you want. i will consider doing it. run out looking for another title. david: chris christie speaking with us earlier today. up, fed chair janet yellen is not a fan of congressional republicans, but she seems to have one big name in her corner. president trump. more on that next. this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david gura. the president plans to name the next fed chair. president donald trump says in an interview with fox news that he likes yellen, but quote, he you have to make your own mark. what does that mean for the sitting fed chair?
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about talking about the relationship between these two individuals, they had a meeting in recent weeks. what we know about how that went and what they discussed? alex: trump was really impressed by her, which isn't surprising. she has a reputation for showing up for meetings on the hill looks fairly well prepared. we're told that she goes to hearings on the hill, or presentations are so well-prepared that she rarely has any follow-up questions. i'm not surprised he was impressed. she made clear to him she would like to stay in her job and she also at least probably modestly touted her credentials for it, including low unemployment, low inflation, a booming stock market, probably all the things the president likes to see in the economy. shery: it seems like senate republicans prefer john taylor, according to a show of hands yesterday that we heard about.
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with the president be going against them? could you do that? don't think anybody nominates will have too much trouble getting confirmed. the five people you said to be considering all our noncontroversial in terms of their personal. none of them have skeletons in their closets that would be a problem for confirmation. there are senate republicans for sure who would prefer someone other than yellen, richard shelby on the banking committee and the chairman of the banking committee both of said they prefer that she not be reappointed. but if trump decided to go with yellen, i think she would be confirmed. david: how much is this relationship changed? inicting the fed chair finance. i wonder when this evolution of the relationship happened? the good example but the difference between campaigning in governing. during the campaign, the
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president accused janet yellen essentially rigging the election in favor of hillary clinton by holding interest rates artificially low, but once he got into office, he discovered that low interest rates were good for him, politically. and helps the stock market continue this boom we've seen since his election. i like to think the president has probably come to the realization that janet yellen is merely a public servant trying to do her best for the economy, if you happen to be in the oval office when she is chairman, you are going to benefit. shery: we know that yellen does favor those relations implement it after the financial crisis. how much of a deterrent will that be? alex: there's been a signal she's willing to consider during illusion. she voted to take aig, the big insurer out of the too big to fail category of financial institutions. i think she has shown some willingness to consider the regulation. david: bloomberg's white house
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team leader alex wayne joining us in washington, d.c.. shery: coming up on "bloomberg markets," democratic senator chris coons joins us. and the decision by robert litan senators corker and flake not to seek reelection. can find breaking news, charts, and related functionality discussed on this program. my interview with governor chris christie of new jersey is up as we approach the fifth anniversary of superstorm sandy. here his reflections on what needs to happen as a result of that disaster. this is bloomberg. ♪ who knew that phones would start doing everything?
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entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that.
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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. scarlet: 11:00 in san francisco. abigail: i know gil doolittle. welcome to "bloomberg markets."
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scarlet: line in bloomberg world headquarters. the top stories we are covering. gop infighting escalates and attention is shifting away from tax cuts as senator flake and corker deliver blistering attacks on the president. we get the democratic perspective with senator chris coons. asgh times with chipotle shares plunge. we dig into the details. as microsoft gets ready to report its latest earnings, we get important insight from creditors analyst. u.s. markets close in two hours and julie hyman, we looking at the earnings here. julie: this is pulling down a ma

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