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tv   Bloomberg Markets Balance of Power  Bloomberg  April 4, 2019 12:00pm-1:00pm EDT

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headquarters in new york, i'm david westin. welcome to "balance of power." michele davis on jamie dimon's annual letter to jpmorgan shareholders. from washington, kevin cirilli on crunch time for u.s. china trade negotiations and from brussels maria tadeo on preparations for no deal brexit. michelle, welcome. dimon talks about whether united states should be a leader around the world. michelle: one of the most interesting things is it was 51 pages and a lot was dedicated to his views on public policy. not much news on what jpmorgan will be doing. it is more i'm not as optimistic about our place in the world and this is what ceo should be doing to help america. guy: fascinating -- david: fascinating. we will come back to you in just a moment. we want to go to kevin cirilli at the white house. this seems to be the crunch day. where we looking for? times and new york
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washington post reporting that president trump will announce a summit with resident xi jinping. the -- the president is set to meet with the chinese prime minister who is in washington, d.c. prior to the vice premiers meeting with trump, he's taking meetings with robert lighthizer and secretary mnuchin. a couple issues still being worked out, including further to be enforcement mechanisms, how much commodities china will purchase from the u.s. and as well as the potential for the u.s. to be able to have the opportunity to take ownership of chinese firms. all of this comes as that much-anticipated meeting. it is unclear whether or not we will hear directly from the president after that meeting, but it will likely -- because it is listed on the president schedule, there could be comments on the president schedule at 4:30 eastern time.
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david: to have any sense of what kind of paper we might see? will there be a joint agreement? the last time this happened president trump took don't -- took on his own trade representative saying i do not believe in memorandums of understanding. seen the have president not afraid to differentiate with his economic advisor or have a diverse opinion play out in the open. behind the scenes, according to sources i speak with who work with his administration on the issue of trade, the administration is not looking to put president trump in a position where he would have a contentious meeting with china's president xi jinping in any type of particular summit. the last point i would make on this is that if you look at the calendar of geopolitical events, the president and the administration have between now and early summer in order to have a significant one-off meeting with president trump and
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president xi. david: many thanks to kevin cirilli from the white house, being accompanied by bank types, which is a nice touch. kevin: i don't know why. david: we like it. let's head to maria tadeo in brussels. as i counted, we have eight days left to go. we do not have an agreement even though the u.k. parliament said we have to have one. as the u.k. ready for an exit without an agreement? maria: that is correct. the eu will tell you we are taking this seriously and we will continue our preparations. part of the preparations, angela merkel is an island. the timing of this -- is in ireland. the europeans are becoming increasingly concerned of the idea of a no deal brexit and what that may mean for the irish government and the irish border. the irish have been put in a difficult situation. on the one hand, they tell you they want to preserve the good friday agreement.
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they do not want to have to implement checks between northern ireland and the republic. they fear this could lead to violence. at the same time, they have to protect the market and that means customs. very difficult situation. i believe angela merkel will want to see clarity about whether or not the irish are prepared for that no deal brexit. david: to we have a sense whether the eu would we be -- would be open to a lumbar extension of theresa may asks for it. her parliament has ordered to -- has ordered her not to leave without agreement. i'm not sure she can do that without the use agreement. maria: in brussels there is an active debate about how long this extension should go on and whether it should be granted at all. if you look at brexit, delaying does not fix anything. you have one camp led by emmanuel macron, very top on the british who say this is not a given. we need to think about whether
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or not we should just go no deal. the flipside is led by the germans. they think we should try until that final day to get the deal. nobodymans will tell you knows the economic repercussions of a no deal brexit. there are many exports that could be a danger. you also have the irish government in a tricky situation. the europeans are concerned about this. that decision will have to be taken unanimously. what i hear is nobody wants to be blamed for no deal brexit. no country in the eu wants to be seen as pushing the u.k. out of the eu. probably they will grant whatever prime minister may ask for. david: terrific reporting. now we come back to michelle davis on jpmorgan. the jamie dimon letter. it addressed public funds but also politics. he said democrats have to ignore knowledge that many of the things done the nation in the name of good have not worked. republicans need to knowledge
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america should provide a safety net. lofty ideas. you cover financial institutions. if you are jpmorgan shareholder, why is it important your shareholder -- your ceo is expressing views? michelle: in a increasingly politically divided environment, we're seeing more ceos under pressure to take stands. asking more is a chairman the ceo or statesman and showing that if we want to fix these problems in america, we will have to do it ourselves. david: it seems like the beginning part of that, was about how well jpmorgan is doing. are there things in washington affected by the republicans and democrats disagree that are adversely affecting jpmorgan is an institution? michelle: the most obvious answer is the economy. everything that affects the
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economy will affect banks, jpmorgan one of the biggest. second, regulatory policy. whether it is excessive or not. david: many thanks to michelle davis for being with us on that interesting letter. now let's get a check on the markets with emma chandra. emma: looking at a mixed picture for u.s. equities today, particularly with the dow jones rising .5%, being led by boeing. we have a flat day for the s&p 500. it is swinging between gains and losses but small in both cases. that is an equal number of sectors in the green and in the red for the s&p 500. it is information-technology driving down the s&p 500. you can see with a .6% loss today. nasdaq down .2%, the worst performer of the major averages.
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that is down to the plunge we're seeing at tesla and also a number of semiconductor stocks pulling back after hitting a record high. the stoxx 600 semiconductor index hitting a record high yesterday. we have a brand-new public company today, tradeweb. 20% -- 28% up, trading at $36, way above the $27 per share. that is the financial service firm tradeweb. a big pop. now 28%. it was the second biggest ipo of the year. the biggest was lyft. lyft is doing better today after a number of sessions in the red. you can see lyft rising 2.7% in trading close to its ipo price, $72 per share.
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in terms of another company doing well after being maligned over the last few weeks, that is boeing, rising 2.7%. investors are shrugging off the conclusions from ethiopia that pilots did all they could to bring their plane out of the dive. boeing rising despite that news. david: i would not a predicted that when i saw the ethiopian report. emma: i do not think anyone would have. david: now we have breaking news. president trump is said to have another nominee for the federal reserve. it is herman cain. he was the ceo the pizza company and ran for president and served on the board of the kansas city fed. herman cain reported to be the nominee by president trump to the federal reserve. live from new york, this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. we turn to for bloomberg first word news. isk: the justice department defending his handling of robert mueller's russia report after media reports that mueller's
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team wrote summaries they intended to be made public. the statement today's as every page of mueller's report was marked with a notice saying it may contain grand jury material that by law has to be kept secret. says thement also department is working with the special counsel to clear the report released to congress and the public. the 2020 democratic presidential race is getting more crowded. ohio democratic congressman tim ryan said he will seek is party's nomination to challenge president trump great he is a nine term congressman and has been traveling to i was -- traveling to iowa and other states with early primary bids. the congressman unsuccessfully challenge nancy pelosi for minority leader in 2016. a trade deal between the united states and china is getting closer. bloomberg has learned president trump will announce plans today for an upcoming meeting with xi jinping to announce remaining trade issues and sign a final
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agreement between the nations. the president will meet with china's cheap trade negotiator, the vice premier. he returned for a second day of talks where he was greeted by robert lighthizer and pressure secretary steven mnuchin. in london, theresa may is holding brexit talks with the opposition labor party. they're looking for a compromise on the uk's future ties with the european union. brexit secretary steven barclay says the british people are growing impatient. >> people do not want this to drag on further. they wanted to come to a resolution. they want the house, instead of being against everything, to come to a decision, and it is time we moved on and got this delivered. mark: british lawmakers have backed efforts to prevent a disorderly departure from the eu. last night they voted to block a potentially damaging no deal brexit. global news 24 hours a day, on
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air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. crumpton. bloomberg. david: back to that breaking news. president trump is said to of selected herman cain for the federal reserve board. who isg in michael mckee our international economics and policy correspondent. , think he ran for president and he ran a pizza company. what i did not know is he did serve on the board of the kansas city fed. michael: he did. a little bit closer to monetary policy. the board of directors of -- manage the business of the bank. they do not do much with monetary policy. some experience, some exposure to what happens with the federal reserve, but it is not a policymaking role where you would consider what was going on. he was a successful businessman, ran the godfather's pizza chain.
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he was a failed presidential andidate, in 2010 announced run for president, dropped out a year later because sexual harassment allegations were announced against him. it was said trump was holding off on him until the background checks were done. they may have cleared him. david: i wonder if we are seeing a change. there was a day when supreme court justices were not controversial and just went through the nomination process. it was also true federal reserve members. now we have the situation, there might be controversy. we have stephen moore. there is controversy about him with not paying taxes and child support. what is the senate's role and confirming these appointments? michael: in theory they're supposed to give advice and consent to the president and decide whether these people are qualified to be on the fed. it is an interesting situation because during the obama
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administration, president obama nominated peter diamond, a nobel prize-winning economist from m.i.t., and the republican-controlled senate banking committee ruled he was not qualified to be on the fed. now you have two people who most economists would say are not qualified to be on the fed. it is interesting to see if the banking committee would agree. david: what does it mean to be qualified to be on the fed? i refer to stephen moore. we have the chairman of the council of economic advisors who said this -- "although i'm not a fan of president trump, i have to give him credit for making good decisions for the fed. then today he nominates stephen moore. stephen moore does not have the intellectual graviton's for this important job. it is time for senators to do their job. mr. moore should not be confirmed. " what does it take to be a qualified fed member?
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michael: it does not take anything. there was the argument the fed got to academic. too many were economists. moore does not fit into any categories. he was a tax-cut lobbyist. he has a masters in economics but his economics have been questioned by a lot of orthodox economics even on the republican side. herman cain does not have the economic experience. he land for president on the idea of a flat tax. 9% for businesses, 9% for individuals. he could bring a business perspective to the fed, but is he qualified? that is in the eye of the beholder. david: we have any members of the fed who ran a business? you have the dallas fed president was a banker. jay powell was more of an investment banker. do we have anyone who ran a business?
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michael: nobody who fits that category, and it has been a while since they have had anyone like that. jay powell himself is not an economist. you mentioned the dallas fed president, not an economist. they have business training and business backgrounds but not -- not run a payroll. david: very interesting breaking news. still ahead, tesla is in the crosshairs today with the stock down on disappointing news on deliveries and elon musk before a federal judge today on contempt charges. that is coming up today. this is bloomberg. ♪
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david: breaking news out of the white house. president trump is speaking on a number of subjects.
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he said he might impose tariffs on cars from mexico if they do not take care of the border situation. that runs afoul of the usmca he's kind get ratified. at the same time he says of the drug flow does not stop, mexico faces car tariffs. he says mexico was capturing and sending back migrants. he is talking about the china deal and says it would be great for u.s. farmers and has to be great. he has said herman cain be his next selection for the federal reserve board. a lot of headlines from president trump already today. this is before his meeting with the chief chinese negotiator. let's turn to tesla. it is our stock of the hour. shares are plunging more than 10% as the company reported declining deliveries. emma chandra is here with more. i said 10%, it is 8.2% at the moment. it has been fluctuating. emma: 10% earlier in the session , now down around 8% and falling the most in some 10 weeks.
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this is when they came out with new delivery figures today. they said they delivered 63,000 vehicles in the first three months of the year. that was down from 91,000 vehicles in the fourth quarter. what is important is the deliveries for the model 3. 3,y delivered 50,900 model missing estimates by 1000 cars. that total was also lower than the previous two quarters. it is stoking concern that demand for the model 3 may be falling after it was introduced. the bull and both the bear case for tesla united in saying they're concerned about these numbers. david: we showed the turned down and deliveries on the model three. that is interesting. they make more money off of the snx. emma: they were also falling. when it came to that model,
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there was some concern maybe model 3 is cannibalizing the other. we are seeing short interest on tesla rising from a low. still the most shorted stock on the nasdaq. david: there another reason tesla is in the news. a court hearing in southern manhattan where the sec is trying to get elon musk found in contempt of court for violating a restriction from the sec by tweeting on the number of deliveries. there is some irony. emma: very ironic. the sec will be arguing with mosques lawyers over that tweet in february, where she tweeted they will produce 500,000 vehicles this year. he then retracted that and went back to the company guidance which was for 360,000 to 400,000, which the company itself reiterated today. one analyst, the analyst over jpmorgan says the news
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undermines elon musk's defense because it shows the incongruence between what elon musk was saying to the fact that now the company saying, reaffirming the outlook of 360,000 to 400,000 cars to be delivered this year. we are that stock reaction today. david: one of the reasons we are interested in all of this is the money coming in the door. they have a lot of cash their burning through. they have debt coming up. does this affect their ability to service their debt? how are they sitting on the cash front given what is going on with their deliveries? emma: the company saying they do have more free cash flow. they are still an indebted company. their deliveries are falling and there is concern about demand and that feeds back into that. david: have you had a chance to take a look at what the analysts are saying? we had one analyst thing they already taken down their price targets. other analysts remain bullish. it is extraordinary, the range
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of the price targets. emma: i'm just going to take a look at the anr function we have on the bloomberg. stock.e 13 buys on the sides in terms of bulls and bears. some of them saying they have concerns about those deliveries. ,avid:, chandra, --emma chandra thank you for being with us on tesla. democratic candidates are often running for money. we just got another candidate. if you have a bloomberg inal, check out tv , check out our charts and graphics and interact with us directly. this is bloomberg. ♪ want more from your entertainment experience?
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just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that.
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welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. david: this is "balance of power" on bloomberg television. i'm david westin. house ways and means chairman road to the rs requesting
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president trump's tax returns, citing the committee's oversight responsibility. trump gave a less than enthusiastic response. this is live to president trump, breaking news. here we go. trump: technology, intellectual property theft, everything is covered. we're in a good position. our economy is way up. china is not way up. we going to make a very good deal or we not -- or we are not going to make a deal. it looks like the deal is moving along nicely. we will say hello to the media in a little while, sometime after 2:00. thank you, everybody. a lot of good things are happening with mexico. mexico understands that we will close the border or i am going to tariff the cars. one of the other. probably start off with the tariffs. that will be a powerful
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incentive. mexico has the strongest immigration laws. they do not have courts. we have a stupid system of courts. we could be the only country that has it. you put a foot on the property, you put a foot into the united , go getcongratulations perry mason to represent you. you end up with a court case. and then they release you and you come back later. nobody comes back. 2% comes back. the not smart ones come back. it is the most ridiculous system anyone is ever seen. and we have catch and release and we have chain migration where somebody brings the family , bring them all here. grandparents, brothers, sisters, cousins. the craziest thing i've ever seen. put in by democrats. the democrats will strain it out, and if not, and i predicted this.
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i hate to see it, but at least i can say i was right. i told everybody, you have a national emergency at our border. nobody talks about drugs. the drugs that are flowing in. , you havest four days covered it to a minor extent, mexico has been capturing people and bring them back to their countries and their southern border. they have been taking people under their very powerful laws, they are the right to do it in their bring them back to where they came from. they three days since heard i was going to close the border. before i close the border, if mexico, and we love mexico. we have two problems. the fact that they allow people to pour into our country. we have to stop them. border patrol has been incredible. law enforcement has been incredible. the other problem is drugs. drugs -- muchs of
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of the drugs coming into our country come through the southern border. in all different ways. much of it where we do not have walls. the wall is under construction, large sections. we'll be meeting friday a piece of the wall we've completed. a lot of it is being built right now. a lot of it is being signed up right now by different contractors. it is moving along nicely. we need the wall. when he lots of other things. we need help from mexico. if mexico does not give the help, that is ok. we will tariff their cars. the other thing is because mexico is such a big source of drugs, unfortunately, now we have china sending sentinel to enyl to-- sending fenty mexico so it can be delivered in the united states.
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the second aspect is if the drugs do not stop, mexico can stop them if they want, we will tariff the cars. and if that does not work, we will close the border. i think that will work. that is massive numbers of dollars. peopleo not see apprehended and brought back to their countries, if we see these massive caravans coming up to our country through mexico, coming right through mexico like nothing. buses are even getting through. the last three days it has not happened since i said we're closing the border. the only thing better than less drastic but closing the border is to tariff the cars. i will do it. you know i will do it. i do not play games. i will do it. we are doing it to stop people. we will give them a one-year morning, and if the drugs do not stop, or largely stop, we will put tariffs on mexico and products, in particular cars.
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the whole ballgame is cars. it is the big ballgame. with many countries it is cars. if that does not stop the drugs, we close the border. mexico, last year, and for many years, just like china, except chinese numbers are bigger. i do not blame china and mexico. they get away with it. i blame the people who used to sit in the seat. they should have done something. i am not just talking about president obama. many presidents should have done something about it. if mexico does not do what they can do very easily, apprehend these people coming in, and they can do it in a much more humane why shouldfashion, they walked 2000 miles and be brought back. they can stop them at their southern border. they have unbelievable immigration laws. the most powerful in the world. david: we have been listening to
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president trump and remarks given at the white house a short time ago. mainly addressing the issue of mexico, saying he will put tariffs on cars, the whole ballgame is the way he put it, if they do not stop the flow people and drugs. if the tariffs on cars are not enough, they will close the border altogether. he blames democrats and the stupid system of courts in the united states. we welcome a member of the ways and means committee, dan kildee, a diplomatic -- a democratic representative from michigan. about going to ask you the subpoena for president trump's tax returns, but you represent flint. i come from flint, the home of buick motors. a big auto company. how do you react to what you're hearing. it sounds like the president's first line of defense is cars and tariffs. how could that affect the people of flint? rep. kildee: the problem with
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the way the president approaches these things is we do not know what the full impact is. it creates a lot of uncertainty in the supply chain. obviously we want to have a better deal with mexico, but that starts with mexico increasing its labor standards. tariffs of said the economy. these trade wars the president seem so fascinated by end up with losers on both sides. we have seen this with china. nobody's going to walk away a winner. i am worried the president takes a shoot from the hip approach when it comes to these policies because it makes him look tough and smart and obviously i do not believe he is either one of those things. he seems to continue to go down to this path and it is dangerous to have a president who does not think through policy and listen to experts before making these pronouncements. david: in fairness to the administration, they did spend a lot of time on the successor to nafta, that does include improvements with respect to
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labor on the wages to be paid for certain percentage of cars coming from mexico. are you in favor of that version of usmca and what it would do to the issues you identify. rep. kildee: i was one who cheered when the president announced you would renegotiate nafta. the issue with nafta or with the new nafta 2.0 is the enforcement provisions and whether or not mexico will actually take the necessary steps to dramatically change their labor laws. here is the problem. the threats the president is now making to mexico does not put us in a position to get them to take those steps. he is creating an environment where it may be less likely they will take those dramatic steps that are a part of the new nafta agreement. we will see, and i hope they do it. obviously, any time you introduce uncertainty, there are more things that can go wrong then can go right. david: let's go back to the subject we asked you want about.
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the subpoena that went out yesterday, or the letter to the irs demanding six years of presidential tax returns. it is well-established according to law that congress does have a right to ask for those from the irs. at the same time, the irs reports to the president. are you confident congress has the authority to get their hands on those tax returns? rep. kildee: i am. this law was written in 1921. it has been used by democratic and republican committees to inform the committee on questions that relate to its jurisdiction. in this case, we have a serious question as to whether or not the irs is properly auditing and enforcing tax law on the full taxpayer list that comprises the enterprises of donald trump. the chairman of the committee, who has this authority, it is not an ambiguous question, has sent this letter. the irs commissioner has to make a decision, adhere to the law,
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or take signals from secretary mnuchin or president trump. i hope the commissioner simply adheres to the law and delivers returns within seven days. david: thank you once again for your patience. i hope you will come back and talk about flint and michigan. the president got away a little bit. rep. kildee: not a problem. thank you. david: turning to 2020, the early stages of any presidential race -- democratic candidates are building their war chest. to take us through the early results, we welcome mark water, trump 2020 campaign director and philippe rhein is, who served under hillary clinton. thank you very much and thanks for your patience. let's go to the list of exactly how the money has been raised by the principal candidates. we can see it is bernie sanders outfront good followed quickly by other major contenders.
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abouthat tell us anything o'rourke, harris? >> is saying there is a lot of excitement in the primary and that you have a lot of candidates including the ones you listed that will go wire-to-wire. they will not run out of money and get to the fall not be able to put up and. if somebody wants to get to iowa we will see at least five or six people getting to iowa. i think of comparing there are two types of fundraisers. there are the ones who are doing nothing and have to turn on the internet every morning and they're getting a lot of small donors, and they're the ones who have to go and hold big fundraisers. president trump is leaning on the second kind more than the first. david: that puts it directly to mark. is that a fair description? how do you regard the enthusiasm
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and money on the democrat side. mark: when i look at the numbers i come away not impressed. when the president's campaign announces our numbers, they will know the kind of juggernaut they will face, not only because the president is running for reelection but also because of the massive support he has among the american people and a tremendous campaign organization behind him that will help him go across the finish line in 2020. i'm curious how this money is going to be spent. there is growing money spent on social media, raising questions about the way social media has been used and abused, including by foreign power. will the president be as inclined to use facebook as they once were. we will continue to use the advantages we have, which is a tremendous data operation. a tremendous ability to target and deliver messages that resonate with specific voters.
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that is one of the things they carried the president in 2016. we have strengthened our ability to do that in 2020. the democratic national committee has continued to languish. hillary clinton expected to take the keys to a cadillac and found there was no gas in the tank. that situation is not changed. it will hamper whatever socialist comes out of the democratic primary. they will be broke, broken, and also have the keys to a democratic national committee that cannot keep pace with the republican side. not all of them are socialists. we have joe biden who seems to be a more moderate. even today we had tim ryan form michigan declare. what is the role for moderates? phillipe: i do not know what the total count is with tim ryan. i believe only one has said they are democratic-socialist. while i know mark in the campaign will use that term,
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that is not here or there. people will look to whether or not they can provide health care. the president is a fraud. the president, in 2016, promise the world. he said on day 1 he would repeal obamacare, he would get the wall going, he would bring down the debt. he has not got any of those done. the question is whether or not people over the four years before 2020 wise up to that are not, whether the people who voted for him who wanted to absolutely shake up the system, whether they see that. i can answer the question. --ald trump has raised 125 $120 million through 2018. i guarantee you his average donation is very high, toward the max and not the excitement that you see in the democratic party. he had a few small donors in 2016. david: at the same time, you you cannot be a flop
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promise with no promise at all. what is the democratic policy to address concerns of people who voted for him. we were just talking to a congressman from my hometown of flint, michigan. trump did win in part because of the frustration of workers in southeast michigan. what do the democratic candidates have to offer as a substitute or replacement for what president trump is doing? phillipe: they will make clear donald trump has not achieved what he promised them. we are not going to offer 1.2 million -- $1.2 trillion in tax cuts when $1 trillion of that goes to corporation that only bought back the stock. it is hard for even reasonable economists to say that have the effect it had. we have raise the debt ceiling. we are now at $21 trillion. people are not seeing the reagan trickle down. people will look -- people will realize in michigan and wisconsin and elsewhere they
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were sold a bill of goods. election were held tomorrow, i think wisconsin and michigan would go democratic. i do not know which way pennsylvania would go. david: a fair point philip makes. the president promised a lot of things. we just heard from the president of the united states of the united states that he will put caps on cars in mexico. it will go after the auto industry. can he stand up in 2020 and say i gave you extra jobs. have the jobs grown in southeastern michigan and ohio? mark: without question. in 2018 our country added more manufacturing jobs than in any year since 1997. obama who saidt those jobs would take a magic wand to come back. you can go back in the last few weeks. 7000 auto jobs are coming back to michigan because of the president of the united states, including some jobs that were planned overseas. will alwayss
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support the democrats because that is what they do. the rank-and-file know this is a president fighting for them in their jobs. they are coming back and he will have that message and that conversation over the next few years. david: philippe, when you look at the key border states and places where the battle has to be fought, traditionally have been union representative. organized labor has helped the democrats. we have a chart we could put out for michigan, uaw membership in michigan. it has gone down over the years. have the democrats a structural disadvantage because they do not have the organized labor they used to have? phillipe: i will not pretend to know the answer. i think it is state-by-state, industry by industry. what people know is that barack obama saved to detroit. there would be no auto industry without what he did in 2009. people know that.
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it is important to be clear what happened in michigan and wisconsin. donald trump underperformed mitt romney in wisconsin. he barely outperformed mitt romney in michigan. it is not like people came out of the woodwork being so happy donald trump came. it is not that way. people more than anything, you do not have to trust me. the way you know donald trump is not sure and the campaign is not sure, he keeps going back there. he gives going back to michigan and wisconsin and minnesota. mark will say it is because they want to hold it and they feel good and they think they can pick up minnesota. i think they're going because they know those are on the edge. i will concede i do not know what the answer is to pennsylvania or ohio. those were different situations. david: we have a little over a year to figure this all out. our thanks to mark lotter and philippe dryness -- philippe rienes, former hillary clinton advisor.
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right now angela merkel is meeting with the irish prime minister in dublin. you can watch it right now on the bloomberg. from new york, this is bloomberg. we do not want ireland to become a backdoor to the single market in the event of a hard brexit. ♪
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david: this is "balance of power " on bloomberg television. i'm david westin. i spoke with starbucks ceo kevin johnson on meeting howard schultz. early it was probably 2000. howard had sent a letter to bill and steve asking microsoft to partner with starbucks on a project where microsoft what could contribute money to help starbucks put wi-fi into all of starbucks stores. bill and steve said kevin, why don't you handle this for us? stephen i took the meeting with harold. he drove across the lake and we
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sat in the conference room at microsoft and howard painted his vision for what he would do to bring technology in starbucks stores. it was clear at the time meeting howard that he had a clear vision for what he was trying to do and yet he had this unique proposal. he wanted to bring technology to starbucks and wanted microsoft to pay for it. we found a way where we both pay for it. it had benefits to microsoft at the time. a creativehoward is and persuasive and thoughtful person. that is where i first met howard. david: you left microsoft to become a ceo for the first time. what made you make that decision and what was it like to become a ceo? until you've been a ceo, you've not been a ceo. kevin: i am very grateful for the journey i had at microsoft and the experience bill and steve enabled me to have. when i joined microsoft in the early days, we were a small
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company, just trying to bring technology into the world in a way we felt was meaningful and could change the world. we achieved that. at a certain point in my career, i always wondered, this has been a great journey at dylan steve's company. what would it be like at kevin's company? when i received outreach foreign opportunity in silicon valley to lead juniper networks, and certainly the founder of juniper networks was there in the prior ceo, wonderful people. here was a small company that also had a vision of changing the world by bringing internet connectivity to the masses. it was an opportunity for me at a time in my life where i felt like it -- if i'm ever going to do this, now is the time. i look back at the last 28 years of my life. i worked with founders. with bill, and now with howard.
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in a lot of ways, i've learned a lot about founders, who i think are very special people and i enjoy very much. david: that was part of my interview with starbucks ceo kevin johnson. you can catch big decisions on bloomberg tv and online. talking about transitioning to the next generation is always a tricky things in business and government. we are seeing that in the congress, where we have 10 new senators and 101 new congressman. whenever there is a changing of the guard, there's always a question of advice from those leaving to those coming in, solicited or otherwise. yesterday former speaker paul ryan, elected and only 28 years age, talked about his advice to the artist woman ever elected to congress. aoc, she isto her, the year older than my came. she is the youngest person other.
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i gave her little tips about being a member of congress. i don't think she listened to a thing. [laughter] outgoing presidents traditionally leave a note in the oval office for their successors with words of encouragement. president obama said one of the best pieces of advice from george w. bush was more practical. >> the second piece of advice was always use purell hand sanitizer because if you do not you will get a lot of colds david:. various democrats hoping to win back the white house have sought hillary clinton's advice, with one conspicuous exception. >> we're hearing about a lot of democrat candidates meeting with hillary clinton for device. do you think you will do the same? >> i suspect not. david: the most pointed advice for those who would run for congress came from a republican congressman from new jersey who served in the house for 24 years before retiring in january. >> if i told you i was running
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for congress, what advice would you give? >> don't. david: we will see if anyone heeds that advice. sign up for the balance of power newsletter at or get the latest on global politics in your inbox every single day. coming up, commodities edge with alix steel. it will look at the bond sales and the impact on oil prices. bloomberg users can interact with charts using gtv . catch up on key announcement and save charts for future reference. live from new york, this is bloomberg. ♪
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reveal.udi aramco's big the oil giant unveils profitability, performance, and production with a key warning that the government still pulls the strings. holy moly guacamole. licata prices surge the most in a decade as president trump threatens to close a southern border. move over almond milk. to findwn with the ceo out why his company is shunning plant-based milk and doubling down on lc the cow. i'm alix steel.


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