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tv   Bloomberg Markets Balance of Power  Bloomberg  August 5, 2019 12:00pm-1:00pm EDT

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welcome to "balance of power," where the world of politics meets the world of business. on the brief today, from hong kong, stephen engle on continuing disruption over there and scott lemon on the escalating trade war. stephen, thank you for sticking around. what has happened since we talked last in hong kong? stephen: these flash mob protests have been moving all around this former british colony. earlier this afternoon it was fairly peaceful in front of the central government offices and the offices of the embattled chief executive carrie lam. battlese there were between protesters and police that involved the firing of tear gas and now we have seen the protesters move their flash mob protest to different parts of the city to keep the police off guard. right now we have the local television stations focusing their cameras on the central
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police headquarters, not too far away from here. we also have had reports of other protest and tear gas and rubber bullets being fired at various other, seven other locations across hong kong. that is a new strategy over the past few weeks that the protesters have engaged in to keep the police off guard. at the same time they called for a general strike, which has crippled transport and disrupted -- social disobedience is what they are calling for. it is has -- it has disrupted subway stations, flights are canceled. this is not something that is going to end. that is what many people in hong kong are asking -- what is the end game? carrie lam did speak to the media, but gave no steps she is proposing the end this conflict other than to say the protesters want to ruin hong kong. david: whatever the next steps
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are from the government side, who will take them? do we have a sense of whether carrie lam is still in charge or is beijing taking a more active role in how to handle this crisis? stephen: beijing is very concerned and they are keeping an eye on this. they mentioned in a news article and commentary that the protesters are starting to walk on a dangerous line. is that a threat the pla could be called in? that is the overarching threat and concern. so far no indication that will happen. what is the next step for carrie lam? she says she will not step down. that is one of the main demands from the protesters, that she step down and launch an independent inquiry into police brutality and the withdrawal of this controversial extradition bill. so far the government has refused to give in to any of those demands. in the press conference, the chief executive and the
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financial secretary listed the economic impact, how hong kong's economic role as an asian financial capital is being jeopardized by these protests. we've already seen the pmi dipped to the lowest level since the global financial crisis in march 2009. we are seeing retail sales drop 7% in june. there are signs these protests are disrupting hong kong's role as a free and open and liberal market. david: thank you so much for all that great reporting. stephen engle reporting from hong kong. now let's turn to scott in new york. this crisis, this trade war between the united states and china. we see it reflected in the markets pretty profoundly. scott: the markets had to render the verdict they did not like the direction this was going.
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we did see a ratcheting up of tensions in the last 24 hours. we thought it ratcheted up thursday and friday. china letting its currency weaken to below seven on the dollar, which is a level a lot of people consider a key level and also with bloomberg reporting china is not going to buy american crops, very targeted action if confirmed. reportingdavid: china has made r move, although they say not so much. president trump said are you paying attention, federal reserve? you should be doing something similar. scott: we have heard this kind of thing about trump and the fed . it can be a complicated issue because trump once the fed to ease policy, which he thinks will counter the weaker chinese currency. at the same time, it is the treasury department that controls the nations dollar policy. they decide whether to intervene in the dollar. we have heard mixed messages on that.
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for example, larry kudlow saying we will not intervene. trump saying we are not ruling out going david: unlike the -- we are not ruling it out. david: unlike the federal reserve, the treasury speaks for the president of the united states. thanks for being with us. now we have reports on guns. what we know about what the responses? we have heard from president trump saying he will do whatever it takes. >> we are seeing more of our response from the president on the gun control side and we have seen in the past. and then from the lobbyists and all the talking heads, it is traditional to what it has always been. with gun control action we need more intervening in the purchase of firearms. then when we look at the right, they are consistently saying this is a mental health problem. health, the u.s. mental rates are about the same rates of other developed countries. we are one of the only countries
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with this kind of firearms issues. we have heard this play before and it has never come to much of anything even though there is overwhelming support for background checks. is there any reason to think this time could be different? polly: that is a good question. historically, these things have not led to major change. what could happen is what happened after parkland, corporations distancing themselves from the nra and other groups. we could see a shift from corporate america. when it comes to politics, it is unlikely to see any change. david: thank you very much. michael bloomberg, the owner of bloomberg lp, is the founder of fundelps found -- helps every town for gun safety, a nonprofit that helps gun safety measures. let's get a look at the markets,
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which are down substantially. kailey: down substantially is an understatement. all of the major averages down 2%. the dow jones off by nearly 600 points. its sixthf 2.3%, consecutive day of declines. now down more than 5% since the record high. the nasdaq down more than 3%. is within the tech sector weighing it down. let's take a look at the technicals of the selloff. this is the rsi momentum indicator for the s&p 500. we are now nearing oversold territory. 5% drop, not that substantial, but the velocity with which this has happened is a question of are we getting into oversold territory. let's bring it back to individual movers. the tech stocks like apple, you can see all 4.5%. apple facing a possible 10%
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tariff on the vast majority of products it sells, and then you have the chip stocks. intel all 4%. skyworks solutions, 3.4%. the stocks index getting hit hard. i want to take a look at movers that are not trade related, but bearing on politics in the wake of those mass shootings over the weekend. president trump remarking about video games and the role they play in the culture of violence in our country. you can see activision off more than 6%. take two interactive and electronic arts down 5.5% to 4.5%. video games under pressure from the president. david: given all that red ink, kaylee will be back often to report on the market. to the formertalk fbi assistant director phil gavin about the shootings. that is next and this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. we turn now to mark crumpton for first word news. mark: president trump is calling for background checks on gun purchases after this weekend's mass shootings in ohio and texas your the president called for a law that would allow courts to take away guns from people who are potentially dangerous. the president also took aim at the videogame industry and social media companies. haveal scientific studies shown little connection between video games and mass shootings your democrats have called on the republican control senate to reconvene from the chambers august recess to back background check legislator.
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us join prime minister has ruled out military bases in his country. this comes after the new york times reported that the secretary of defense said he was in favor of deploying u.s. missiles to asia within months. the move came only one day after the united states formerly pullout the cold war era arms treaty with russia which limited these weapons. in india, the government is ramping up the security crackdown in kashmir. the disputed region special status has been revoked. political leaders have been placed under house arrest and the internet -- and the indian army has to floyd thousands of extra troops. the army says it is responding to cease-fire along the line that separates the india and kashmir border. senate majority leader mitch mcconnell fractured his shoulder in a fall at home. he has been treated and released. meanwhile, rand paul will have to limit his activities after
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part of his long was removed. lungong was damaged -- the was damaged when paul was assaulted by a neighbor two years ago. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? president trump spoke from the white house about the tragic shootings over the weekend in el paso and dayton and pledged the fbi and other law enforcement would have whatever needs to prevent such crimes. : hate has no place in america. hatred works the mind, ravages the heart, and devours the soul. we have asked the fbi to identify all for the resources they need to investigate and disrupted crimes. ,avid: we welcome bill gavin the former assistant director of the fbi. good to have you with us. let's take the president at his word.
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if you are the fbi director, what resources you need, what would you do with them? bill: there are a number of different resources. first of all, it is manpower. we have to hire additional agents and analysts and support people in order to get to where we have to be to address the situation. that is not easy. when you do that, you have to hire the right kinds of people. people with high technical skills. the bureau reproves those kinds of people, but we need to do all of those things. the bureau has been asked to do more and more with the same number of resources they have had, or maybe a slightly significant number. you cannot keep doing that. you notice when we talk about terrorism, the nationalistic terrorism, the white supremacy kind of thing within the united states, we had the humic they and those case -- the timothy
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mcveigh and those kinds of cases , been a lot of the attention was moved to the islamic terror threat. when you do that you have to move resources around. it is not that you discount the investigation involving white supremacists within the u.s., but you do depressed that kind of an investigation. it is a big problem and it is going to demand resources. that is money, cars, technical equipment, all of those things that are part of the increase in the manpower resources. david: one change from the time of timothy mcveigh is the role of social media. the president talked about that, saying there were indications on social media that something like this might be a foot. what can the bureau do about using social media to identify some of these people before they strike?
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bill: it is a delicate set of circumstances between the civil rights of individuals and freedom of speech and whatnot and how soon you can step in and dobill: something. the biggest problem is the fact that these did, the people that tend to do things are not exactly dumb. they know how to use the dark web, they know how to use all of those things. we have to stay up with the investigations and be able to penetrate the deep web. is of the biggest things that new york starter the policy years ago, see something, say something. we need to extend that not to does the public arena, but the private arena. when your parents see you in your room with all kinds of things that indicate you are in trouble, they need to do something about it. the hesitancy -- i do not want to do it, they do not mean it, they're just experimenting, that is not true. they end of doing something tragic similar to dayton and el paso.
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they need to do that. the kids pick up on these things. david: what about the institutions? the companies that run some of these chat rooms. beforet know about 8chan this came out. this is an area where people are exchanging information online. what is the role of social media companies to monitor what they are doing and shutdown things in advance. is absolutely necessary, but trying to get them to do it is a difficult proposition. it is the almighty dollar that will keep them doing what they do now and they should not be doing it. they should have some sense of civic responsibility, responsibility to their fellow citizens to bring these things to light when they see them. we have to know how to work the intersection between mental illness and firearms availability. we're never going to get rid of the second amendment and i do not advocate we do, but there are certain things we need to tighten up.
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who gets a weapon of mass destruction in terms of killing a large number of people? we need to tighten the ability of these people to get these kinds of weapons up. we can only do that with the help of parents, with the help of fellow students. i have the sense that when it came to isis, we were fairly effective at shutting down the internet to ratify individuals on the internet. why can't we use the same technique with lone wolf domestic terrorist? bill: the same technique can be used, but you have to be careful. when you not talked about islamic terrorism, you are not concerned with the civil rights of that individual who is trying to kill you and your fellow citizens. that is not the primary thing. when you start to look into the domestic situation, what is the right of free speech for this individual? those things are difficult. you should still be able to do them.
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congress has to take a look at where the parameters are. david: the president says he wants it done. thanks a lot. bill gavin, former fbi assistant director. we want to mention that michael bloomberg is a founder of and helps fund every town for gun safety, a nonprofit that helps advocate for gun violence prevention and gun safety measures. now we will take a big turn to china and their trade conflict between the u.s. and china. china has said it will counter president trump's new tariffs. some are saying it's moved to of thethe yuan as part response, although the pboc governor denies the two are connected, saying i'm fully confident the yuan will remain a strong currency. we welcome strapped for vice president for global analysis from their option -- from their office in austin texas. let's address the question straight up. is there any doubt in your mind
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the chinese moving to weaken their reference rate was directly tied to the trade conflict? >> certainly the market pressures from the trade war was always going to be one of the biggest variables that is going to be putting downward pressure on the yuan. there is some truth to that. the question moving forward is the pace of depreciation in the primary variable is how much pain as the chinese government going to be willing to tolerate when it comes to undermining domestic consumption. far more than any fear of direct u.s. retaliation. trump always rashes -- always laceration -- trump always lashes out and says this is evidence of tron of trying to being a concerns the manipulator , but the u.s. lacks tools to punish countries labeled as a currency manipulation. they are already in a full-blown trade war. david: the trade war united states is not the only problem beijing has at the moment. we have seen more demonstrations in hong kong. they are still going on as we
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speak and it is beginning to happen effect on the economy of hong kong. how is beijing likely to respond to what is happening in hong kong? reva: already we are seeing large police exercises right on the border with hong kong, and beijing is telegraphing that it is ready to intervene if it needs to. politically, i do not think beijing wants to cross that line. , buts to send the message it is also testing the repercussions. the international response. sanctions will come, even as we are seeing trump take his hands off the approach to hong kong with her trade war now in an s the tory phase. that could shift back to direct u.s. pressure on china using hong kong as a lever. the momentum is still there behind the protests. we are not seeing a fundamental break in the protest movements. the more radical tactics the protesters resort to, the more the risks splitting the protest
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movement, especially with the business community. are the prospects for long-term not permanent damage to hong kong is a financial sector? reva: certainly. this is not going to go away. this is not a short-term issue over extradition. it is a question of the two system rule and whether china is encroaching on that. everybody looking at the investment climate in hong kong has to calculate this kind of unrest will be a regular occurrence and the threat of beijing's intervention will remain. david: what is the likely effect on the government in beijing? they must feel little bit the siege on more than one front. will this continue to escalate? what they've done to agricultural products will work with his agricultural based in the united states. you can count on the 10% tariffs on september 1. china is not backing down. not seeing any clarification from the commerce ministry on
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the huawei export restrictions. that would be the critical path on an offramp. china is bracing for that and waiting to see how much pressure falls on trump. we look at beijing's perspective on the hong kong protest. note the chinese travel ban against taiwan that came out last week, which is interesting as we are seeing growing speculation that beijing is concerned about mainland tourists going to taiwan and being concerned about pro-immigrant sentiment. david: always great to have you with us. live from new york, this is bloomberg. ♪
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david: u.s. equities are down in a six-day. we are joined by kailey leinz. kailey: it is ugly. all major averages down 2% or more. s&p and dow still on the lows of the session. the nasdaq has come up a bit but
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is still the underperformer. that is because of the semiconductors. taking a look at the long-term chart of the stocks index. the worst a day stretch in about five years. so my's under pressure because of their exposure to china. amid all of this market turmoil, we can take a look at expectations of what the fed is going to do in september. it is now a certainty the fed will cut in september priced into the market. president trump getting what he wanted. david: thank you so very much to kailey leinz. our political roundtable is next. talking about what affect all this talk of gun control will have on the 2020 election if any at all. live from new york, this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. for bloomberg first word news, we go to mark crumpton. mark: in egypt, 20 people have
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died after a car packed with explosives collided with other vehicles in cairo. the bombing occurred outside of egypt main cancer hospital. several mainaged gates, patient rooms, and wards. minister hasn called the sanctions against him a quote failure for diplomacy. the president announced the sanctions last week after iran's revolutionary guard seized a small oil tanker. the guard says the ship is suspected of smuggling oil. it is the third foreign vessel taken by iran in the last month. in hong kong, protesters are trying to shut down the city with a general strike and commuting disruptions. traffic snarled, subway lines and operable, and the airport a mess. carrie lam called it a very dangerous situation.
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>> those alter your motives are going to destroy hong kong. to risk one country. mark: it was the ninth straight weekend of protest in hong kong. >>they began over proposals of extradition to mainland china. u.k., there is speculation boris johnson may be getting ready for more than just brexit. there is toxic could be seeking an early election as well. he has hermetically boosted public spending since taking office less than two weeks ago. his conservative party is not ruling out an early vote. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: president has pledged to do what needs to be done to prevent hate crimes like the shootings and el paso and dayton over the weekend. the president candidates for democrats have quick removed on what the president say happened.
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we turn to the founder for women for a great america, and basil smikle. welcome to both of you. , is it fair to associate things the president has said with what happened over the weekend? we have had mass shootings, long before donald trump was president. basil: that is correct, we have had mass shootings as far as i've been alive in this country. what is specific and unique about these situations and this president is we see some of the rhetoric the gunman and el paso used matching some of president crops rhetoric at these rallies. there have been reports that in the counties where he has had his rallies, hate crimes of increased over 200%. not a causality, but there is some correlation with some of what we see in terms of the increase in hate
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crimes and that rhetoric. having said all of that, as you said, we have been dealing with mass shootings for decades. the truth is, there are policies in this country that need to be dramatically changed. i hope the president show some leadership on moving the needle on that so that we can get rid of this culture of gun violence. the president this morning said he wanted to do whatever it took to prevent these. what can be done, from the republican point of view, what are republicans willing to do to stop these? >> you look at the background checks which most are in support of strengthening. background checks in both instances would have done nothing to stop these. than who had no criminal record other than maybe a traffic ticket. this is a difficult time. david: is that a reason not to checks?kground you say it is overwhelming, both democrats and republican support background checks. >> they have talked about
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strengthening those, may putting a longer wait period, which i would be open to. if you look at the statistics, these are largely young, white, angry males who do this. these are young men in the suburbs who are committing these heinous acts. in terms of president trump's thisbility, i pulled statement from august 14, 2017. everyone ties this to transfer rhetoric on charlottesville. condemned white supremacists in his statement. condemned in the strongest possible terms. racism is evil and those include kkk,s and dogs including near not seize, white supremacists, and hate groups. here is where the left-wing media has some culpability here. i been 80% of americans never heard this statement. unless you visited the white house website -- david: are you at all on
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comfortable with the fact that the president has been so outspoken about immigrants coming over the border from mexico and the danger of these people, and the fact that this shooting happened in el paso, and overwhelmingly hispanic were the victims. does that make you uncomfortable? it makes me comfortable that congress left for recess without addressing the asylum loopholes. i have a grandfather who lived in el paso, he was hispanic. i remember going to the grocery market with him when i was six years old and people saying he should go back to his country. he was an american citizen. this issue has been happening since we were kids. the problem is you now have a number of factors coming into confluence. you have fatherless households where more than one in four kids is growing up without a father, you have the video games, which i think is part of the equation -- basil: i have to say something
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here. result of unwed mothers or fatherless households. it is not a result of video games. it is not a result of hip-hop or music. they have been blaming that on hip-hop since i was a child. shooting, a hook single mother, father left the home. basil: let me tell you something. myrew up in a home where parents were divorced, i have three ivy league degrees. that is not the issue. the issue is it is too easy to get guns in this country. there are more guns than people in this country. we make it more difficult to get and use a car in this nation than it is to get and have a gun in this country. if we are going to tell personal stories, i was shot when i was 12 by a 14-year-old. tucson, the answer to that is we should all have guns.
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that is my fear, that this escalates arms among individuals. the answer is not for me to have had a gun. a huge problem for the country and we should be spending time on it. in november 2020, is this going to be a significant determinant on who they vote for? dependspossible but it on what is going on leading up to the election. we saw in the midterm elections, the brett kavanaugh issue had an effect. a couple weeks after that, we had the guy who sent pythons. -- pipe bombs. has two bills,e the senate has not voted for those bills. the best way to say it is, if democrats take over the senate, you would have an easier path. >> gun ownership, 31% of women represent gun owners. women only represent 3% of the shootings. david: thanks very much to jen
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kerns and democratic strategist basil smikle. as we have been noting, michael bloomberg, the parent company of bloomberg, is a founder of every ann for gun safety, organization that advocates for gun safety measures. the woman behind senator sanders economic plan. we will speak to stephanie kelton, senior advisor to the campaign. this is bloomberg. ♪ this is bloomberg. ♪
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david: you are watching "balance of power." i'm david westin. senator bernie sanders has taken one of the most progressive stances of all democratic candidates running for president, with some questioning how we will pay for all he wants
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to accomplish. we welcome someone advising him on these questions, senior economic adviser, stephanie kelton. she is also professor of and public policy at stony brook university. thank you for being here. let's start with medicare for all. it's gotten a lot of attention, including in the democratic debates. how much would it cost? i think we have good estimates. the question is over what period of time. we know we are already spending in excess of $3 trillion a year on health care. you hear numbers like $30 trillion, but of course we are already spending more than that and we are on track to spend more than those projections have a spending under a medicare for all system. it on as people look at
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10-year horizon, annual basis, but the important point to make is what we would rejected to spend if we were to transition away from the bloated, inefficient bureaucratic system we have today, to a leaner and more efficient system like medicare for all, we would be spending less as a society on health care and will and him getting more coverage. everyone will be covered and we will expand the types of coverage people can get. they will have mental health coverage, dental, vision, long-term care. right now about 18% gdp in health care. once fully implemented, medicare for all, what percent of gdp would be represented by health care? stephanie: it is impossible to know but we know that the next closest country to where we are today spends about 10%, 11% of gdp. we may not get there, and a much or that we want to, but we are talking about expanding care to
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long-term care, dental, vision. we are beefing up the coverage that we are offering, and that may get us closer to 15, 60%, but it is impossible to know until we end up spending the money and find out how much of our national resources we will turn over to health care. in a sense, what better way to use national resources than caring for our health and well-being. david: let's assume it goes down from 18% down to 14% or something like that. all of that would be coming from the federal government. it would not be the private sector paying into that. how does the federal government funded that? stephanie: the way that it funds everything else. people ask these questions about how the government will pay for, whether it is infrastructure or health care, but there is only one way the government pays for anything. at the end of the day, the government pays for everything by instructing the federal reserve to clear the payments congress has authorized.
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congress will authorize the spending and it will take place. the government is paying the time rather than the rest of us in a term of co-pays and premiums. there are taxes and revenues. how much would come from increased taxes and how much would come from increased borrowing? stephanie: the thing with medicare for all, as we talked about, we will end up using fewer national resources to deliver health care for everyone. all works like a tax cut for 95% of the american people, why? you will end up spending on lessge about $3000 a year than you are spending today. that is $3000 that stays in your pocket. it has the same economic affect as if someone cut your taxes and left you with $3000 more a year. medicare for all really does work like a tax cut. david: if that is right, those
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savings have to come from someplace. somebody has to get less money. doctors or insurance companies, somebody has to get less money. stephanie: most of it is coming out of the middle man. that is where so much of the overspending takes place today. we have this additional layer. someone is standing between you and the other end of your health care. that middleman is taking enormous chunks of money, tens of billions of dollars annually, that you are paying in the form of premiums, co-pays, deductibles that are being peeled off by the intermediaries, health insurance companies, pharmaceutical companies. when you bring down the cost of health care, also for perception medications, that all accounts for much of the savings. david: bloomberg news has called you the public face for modern monetary theory. as you described this health
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care, this has nothing to do with that. stephanie: it has nothing to do with modern monetary theory because we are just talking about a policy proposal that asks how we transition away from making the payments that way we'll make them today to a more efficient system, where we make smaller payments in the future. as i understand modern monetary theory, it says a country that has the reserve currency for the world doesn't need to worry as much about borrowing more fun. is that fair? stephanie: pretty close, not bad. you don't need to be the reserve currency issuer in order to be liberated from some of the constraints that households and private businesses face. it gives you are degree of freedom to have the reserve currency, but other countries have the capacity to run their budgets in the interests of their people, rather than running it the way a household or private business is required to run them. david: if, in fact, you can
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doesn't not affect investment in the country as a practical matter? stephanie: if you want to break , when theto mmt here government borrows, it is not crowding out some other form of spending. when the government engages in borrowing, -- lets you some easy numbers. spends $100 into the economy, taxes $90 back out. it leaves $10 summer in the economy. we say the government has run a deficit, we write a -10 on their ledger, but the deficit has placed $10 summer in the economy. we label that borrowing. it is an unfortunate term that we use because money to buy the bonds comes from the prior deficit spending. there is a lot that we get wrong in these conversations about our wing because we liken it to what
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households do when they borrow money. households borrow money they don't have. the federal government borrows money that it had deposited through its budget deficit. david: isn't it computing the corporations in the capital markets to borrow money? stephanie: no, it is providing the money first and then swapping the dollars out for u.s. treasuries, which right now still pay a positive yield. that is not the case for much of the world right now. advise senator sanders on his campaign, what are the major elements of a sanders economy? we have talked about health care. what are the other major components that he says will change the lives of everyday americans? stephanie: this is a man who has spent his entire career fighting on behalf of working people. thedeep concern is with working men and women of this country. he talks about things like good jobs, good paying jobs, raising
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the minimum wage, he has been talking about inequality, for decades, before it was cool to talk about the problems with unequal income. he talks about ways to address this gulf between everyone at the top and everyone else. rebuilding unions, part of strengthening worker bargaining power. college affordability. how is it that we have a generation of people today who are finding it harder and harder to pay for college education, leaving with mounting student loan debt? $1.6 trillion. he is talking about canceling all of that. i could go on and on, but those are some of the bigger things. david: fascinating. there is a lot more to talk about. stephanie kelton, senior economic adviser to the bernie sanders campaign. live from new york, this is bloomberg. ♪
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david: this is "balance of
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power" on bloomberg television. i'm david westin. equities continue to slide deeper into the red. let's get a check on the markets with kailey leinz. for thee are on track worst day of 2019. all three major averages down 2.5% or more. the nasdaq down 3.2%. semiconductors under pressure. we see investors rushing into safe haven bonds. take a look at the u.s. 10 year treasury yields. over the course of the past week, down 34 basis points. now trading at 1.74%. this is the lowest yields have been since 2016. of course, that is putting pressure on financials. take a look at the individual bank movers. that is putting pressure on banks. bank of america on pace for its worst day since december. especiallynks
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interest-rate sensitive. finally, i want to look at high-yield bonds, another sector of debt. 2019,r its worst day of investors not liking that riskier debt today. david: thank you so much, kailey leinz. president trump said that he was committed to doing everything to prevent hate crimes as he characterized the shootings in el paso and dayton. our executive editor for bloomberg opinion raises some doubts in his piece today. we will come tim o'brien. given what the president has said, you have some questions about his dedication to this mission. tim: one of the things we are facing, the president has stoked . he is playing the race card and has been flat out racist in a lot of circumstances. he has had rallies that have devolved into violence.
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hope that these events are something where he would embrace some of the responsibilities that may go a long with the power of the office he has, and the way he speaks publicly about some of the issues that divide americans. david: we heard him talk this morning and he seemed concerned about this. we will see whether he changes his language going forward. in fairness, we have had mass shootings long before president trump. we have had some terrible shootings without the sort of rhetoric that you take objection two. tim: that is true, but particularly in the el paso case, the shooter appears to have adopted some of the language of the president. that is a distinguishing factor. even if there were predicate shootings, that doesn't take the burden off of any leader to solve the problem now and not stoke the flames. it was interesting in his press
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conference, he identified some of the factors that contribute to gun violence, but has not promised to put forward any substantial legislation in the congress that would extend some of these problems. david: you have studied this long before he was president, you knew who donald trump was before he became president. did he express a view on things crimesn control, hate before he was president? tim: he has had a long history of inserting himself into racially intense situations, a long history of playing the race card and peddling racism. a family had a housing queens in the 1970's and they were cited by the justice department for racial discrimination. that is not a new issue. what is different now is the power of the office he holds. he is an international leader
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and he is still learning on the thehow to adapt to some of responsibilities that come with that. as you do, do him you think there's a possibility we will see a change in donald trump given what is going on? watching him this morning, i took him at his word that he is troubled by it. tim: i think it is a wait and see. i don't think donald trump evolved very much in five decades, i don't expect them to very much now. david: thank you. we should mention, michael bloomberg is a founder of and helps to fund every town for gun safety. live from new york, this is bloomberg. ♪ hey! i'm bill slowsky jr.,
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i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in?
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ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. mark: i'm mark crumpton with bloomberg first word news. president trump has proposed stricter background checks after the shootings in ohio and texas.
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the president outlined his proposal earlier. >> we must make sure that those judged to pose a grave risk to public safety do not have access to firearms, and that if they do, those firearms can be taken through rapid due process. that is why i have called for red flag laws, also known as extreme risk protection orders. the president also called on the justice department to propose legislation that people who commit hate crimes and mass murder face the death penalty. spokesperson's says the u.k. will leave the european union on october 31, whatever the circumstances. johnson also announced $2.2 billion for the country's national health service. germany doesn't believe in boris johnson's threat on brexit. the prime minister says he wants a new ant

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