tv Bloomberg Markets Balance of Power Bloomberg September 10, 2019 12:00pm-1:00pm EDT
headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, from capitol hill, kevin cirilli on treasury secretary mnuchin fannie mae and freddie mac testimony. emma chandra from london on the next brexit move, and michael mckee on new inflation data out of china and what it tells us about the state of the chinese economy let's start with kevin on capitol hill. let's first talk about this tweet that just came out from president trump. apparently john bolton is no longer there. kevin: president trump just tweeting "i informed john bolton last night that his services are no longer needed at the white house. i disagreed strongly with many of his suggestions, as did others in the administration. he goes on to tweet that i asked john for his resignation, which was given to me this morning. i thank you john very much for his service. i will be naming a new national security advisor next week."
it comes following the developments over the weekend with the planned meeting president trump canceled with taliban leaders at camp david and comes at a crucial time with regards to the president's middle eastern policies. remember, jason greenblatt stepping away from the administration and the last week. the long-awaited mideast peace plan also anticipated sometime before the end of the year. mike pompeo also weighing his political future within the next 12 months. a rumored senatorial run potentially in his future. a lot of moving parts on the president's foreign policy and national security advising team. john bolton was a controversial figure within the administration , particularly with regards to his hard-line approach on iran. there were several differences in terms of how he had assembled a team, but he does have its allies within the administration.
the bottom line, breaking news, president trump announcing on twitter that he has accepted the resignation of john bolton, his national security advisor, and will be naming his successor sometime next week. david: he was a controversial figure in the white house. the president admitted that and said i know a lot of people disagree with him, i might disagree with him, but i still want his counsel. something has changed. it might've been afghanistan, but you also point your finger at iran. one place where he differed with a lot of other people was a desire for regime change, it even military action in iran. with him gone, does this open up the president to have the talks he has been after with iran? kevin: yes. facinglton was already significant attacks from democrats about his positioning in regards to the president's policies regarding iran. you saw that flare over the summer. has an openingnt
for that new national security advisor role. it will come at a crucial time politically, as well as geopolitically, both as the president faces reelection and as the president looms that decision with regard to a peace plan and the global threat of iran. the president said to be on the main stage of a general assembly meeting later this month. all eyes will be on the type of rhetorical approach he takes when he will present to the u.n. general assembly in a few weeks. many moving parts. this is a decision that has caught many off guard. this is not in anticipated decision with regards to the president's announcement of this. glaring hole in the president's foreign policy. david: as markets try to sort through this, one indicator may be the price of oil. the price of oil has gone down, particularly wti crude.
it seems to have happened right at the time this tweet came out and one wonders whether that is the market, anticipating the possibility. -- withth sharad brown sharad brown -- with senator rown.d brown -- sherrod b kevin: what is your reaction to this? >> bolton comes out of the same group of advisers that lead us into the war with iraq and put our troop in harm's way for too long. i did not know this until i walked out of the hearing and you told me. i welcome that news. kevin: this hearing with regards to fannie and freddie. what did you make of the administration plans to privatize fannie and freddie? >> you know what happens when you privatize. in this case wall street benefits and the public loses. we know it will mean higher prices and less access to affordable housing. that is a problem in cities like cleveland.
it is a problem in appalachia, ohio, rural areas, problem in suburbs, a problem throughout my state and throughout the country. kevin: i know you're busy, we appreciate you on bloomberg. the reaction starting to trickle in on capitol hill upon the breaking news of john bolton resigning from the president's administration and the fannie and freddie to elements as well. david: we will come back to fannie and freddie. i want to take a moment to say the markets are trying to sort through this. it appeared the price of oil moved down decidedly, particularly wti, as soon as the news came out, which might underscore the possibility this could affect the iran sanctions. if there is more oil, the price goes down. we wonder whether this might affect the iranian situation. kevin: exactly. last week when i interviewed brian hoke, who was the advisor to mike pompeo, he said oil and
the oil markets is something .ncredibly important to them with regards to oil, what i can is somethinghat the administration has consistently said is on their radar. you are saying that in the market reaction about just how significant of a role these geopolitical events play. david: it is too soon to know who will be the replacement for mr. bolton, at the same time we can think about who are the other advisors around the president who might come to the fore. mike pompeo seems to have a close relationship with the president. does this mean mike pompeo may have an even more important role in advising president trump on international affairs? kevin: absolutely. i would make that case that this could impact whether or not mike
pompeo decides to run for senate. meanwhile, brian hook continues his assent within the administration, as does jared kushner. kushner has been working behind the scenes on crafting this middle eastern peace plan that has yet to be unveiled. they have been traveling --ether a long time traveling together with jason greenblatt, a longtime advisor to president trump. with his advisor -- with his departure, brian hook remains. will be fascinating to watch what type of ideology is ascribed to the success for of john bolton. will it be a more hawkish individual, will it be a more libertarian leaning? there's the possibility of someone like a senator rand paul trying to be a go-between between the iranians and president trump. and then you fast-forward to the g7, where emmanuel macron
suggested he would serve as a go-between between the iranians and the u.s. very diverse ideological back-and-forth in terms of the president strategy. again, john bolton, this is a surprise, this i anticipated. he was long believed to have a close personal relationship with president trump. ultimately he has resigned. david: many thanks to kevin cirilli. he was up there to cover fannie mae and freddie mac but he is covering john bolton stepping down. res.let's turn to bill fai there is speculation about what this might mean for the president's policies. we focus on iran. are there other places we should be looking at? bill: john bolton heavily involved in many aspects of trump's foreign policy. a big cheerleader for the president to take a tough line against the venezuelan government led by nicolas maduro. he was someone it was not
believed to be very supportive or very optimistic of president trump outreach to north korea. most notably, when president trump stepped across the border into north korea, on that historic trip, john bolton was traveling to mongolia at the time and tweeted quite a bit about it. there were a lot of issues where john bolton, perhaps more than any other advisors in the national security cabinet, stuck to what were his core beliefs about the big local issues out there, whether it is iran, north korea, venezuela, john bolton has long been skeptical of any talks with iran and president trump has obviously said many times he is willing to meet with iran's leaders. there was no shortage of areas where he disagreed. as kevin mentioned earlier, this leaves mike pompeo and potentially a strong position. he is the longest serving member
of the president's national security cabinet. he is the only remaining original member of that cabinet. there is a lot of speculation about how long he will stick around. he has potential political aspirations with the senate from kansas. pretty jim maddock day -- pretty dramatic day and i think we'll be looking closely at what may have been the final straws for john bolton's time. david: you point to particular places where the president is outspoken -- you have iran, you have north korea, venezuela may be a different case. in those areas, is it more likely the president will get to sit down at the table in iran and have a negotiation? bill: if that is what the president wants to do, i think secretary of state mike pompeo will help make that happen in a way that perhaps john bolton would not. of any of his traits as
secretary of state, mike pompeo has done a remarkable job of making sure there is no daylight between him and the president. it is clear there were a number of issues where there was daylight between john bolton and president trump, just as there was between president trump and jim mattis, the defense secretary who quit at the end of last year. .ike pompeo has done a good job if he has differences with the president, he presents them in a private way that seldom if ever early cap. that is not the case with some of the other people on trump's national security team who have gone by the wayside the last two and a half years. david: this potentially indicates good news for kim jong-un in north korea. mike pompeo has made more than one trip to north korea and is an emissary for president trump. the president says he wants to sit down again. does this make this more likely with mr. bolton out of the way?
bill: mike pompeo has been the point person ever since he was cia director with north korea relations. the u.s. point of view is the ball is in north korea's court. we heard from president trump's top envoy last week saying we are ready to talk. they need to respond to us. ,here is always the potential but i think this outcome -- this outcome does not affect as much as the black box of european politics -- of north korean politics. david: many thanks to bill ferries from washington. joining us with more is alix steel. you know oil like nobody else. once this tweet came out, i watch the price of wti and it went down .5%. now it has come back up to flat. what is oil doing? the initial reaction is we
might have seen a softer line between iran and the u.s.. the reality of the situation is that it did not matter. that was not going to be true. iran has said multiple times that in terms to come to the negotiating table they need sanctions lifted. no matter who will be in the white house, and definitely not if bolton is in or bolton is out. the other issue is on demand. there already rumors in the market that iran has been selling their oil, to china perhaps. they have been taking out some of their equipment, and there is some floating storage off of china. is some floating storage off of china. china could also be secretly buying some of its oil. there is already been the work around from a material supply perspective. i do not think this matters. david: we think perhaps this could be good news for the iranians. ,ho might it be worrying to particularly i'm thinking of saudi arabia. no big fans iran, they do not want the sanctions. they have to get the oil prices up. alix: they don't.
if you going to the opec meeting on thursday, if there was any sort of negotiation between the u.s. and iran, it would be difficult for the market to absorb 1.5 million barrels of oil a day. it would be near impossible and it would make sally's job -- it would make saudi's job much more difficult. already exemptions because of geopolitical issues, so where with the supply even go? that would mean you would have to pick up demand, something the saudi's cannot do. david: president trump has had a close relationship with the kingdom. one thing they have not agreed on is the price of oil. trump has tweeted again and again he wants it low. opening things with iran might keep it low. how they reconcile that? alix: i do not think president trump wants to talk to iran. i think he wants to hurt the economy and drive them to the table. if iran will dig in their heels
and you have europe trying these workarounds, president macron of france saying we might do a $15 million line of credit, we will give you money and you will pay us back with oil, that will not look good for president trump who wants a hard line against iran and will not back down from that. i do not think he wants to talk. i think maybe you do not get the job done because there is not enough pressure on iran. david: that is a distinction you make because john bolton had been hawkish on iran. before he went into office he said things were confrontational. president trump might have his cake and eat it too. he might say i can put pressure on iran through economic sanctions, but i do not to go to war. mr. bolton has a tendency to go in that direction. it is possible he could disagree with john bolton on that part of it but not sit down at the table. alix: what this reminds me of, and i'm sure this is a stretch,
but in terms of the desire for an oil country, is what saudi arabia did by replacing his oil minister -- it's oil minister. they want the impossible. the oil minister cannot get the price high, so they replaced him with something internal. president trump wants what he , he is not getting what he wants, iran's economy is not week, it is not destitute the way president trump was hoping it would be, therefore you have to change the strategy. i do not think the oil market is interpreting it as we will not go to war, things will be better, it will be ok. david: there is such a history of the united states thinking economic sanctions will be powerful. if you go through history, it is not easy to find times it actually made a difference. alix: there is always a difference between the official data and what is going on beneath the surface. officially, the sanctions have done more damage to the iranian
community with oil than obama did. but like i said, if they are still selling it, and they see a more pliable europe, that will be a different scenario on the ground. not seeing the economic drag we would have thought a year ago. i feel like the oil price is reflecting that. david: thank you so much. that is alix steel, who is my coanchor in the morning. john bolton is out as national security advisor. oil dropped on the news. morehead, including a conversation with general mark kimmitt. from new york, this is bloomberg. ♪
that and also speak to general mark kimmitt later in the hour. google has potential antitrust problems, and they just got a bit bigger. from 48 stateals open practices into the country's advertising practices. the probe was announced by the texas attorney general from the steps of the supreme court yesterday. >> this investigation is not a lawsuit. it is an investigation to determine the facts. we are looking at advertising. the facts will lead where the facts lead. david: we welcome out and type -- our expert antitrust panel, jennifer lead and -- jennifer reed and james keefe. i understand you have a conference coming up on tech and antitrust. how timely is that. perfecttiming -- james: timing. david: the federal government has said it is taking a look at these issue.
how much does it add that you have 48 states saying we will open an investigation? jennifer: the floodgates have opened. this is a hot button issue, tech and the control over our data. i think the states have been activist in the last couple of years. this is an issue that affects all the consumers in all 50 states. it does not surprise me that the states decided to get involved. they do this in a number of ways. a lot of times they piggyback on what the federal government is doing. i am not surprised they decided to set up their own investigation and pursue their own line of inquiry because it allows them to take different tact from the department of justice and the trade commission. david: explained to me what this adds. it is -- is it a matter of the law being different or is it more resources that could help the federal government? james: it is more a matter of resources. the law is the same.
this is just an investigation. if you're going to get any relief, you have to go to court. probably federal court, whether the federal agencies of the state agencies, and you have to get a judge to find liability and then address relief. it is an extremely early stage. there is a lot of angst about privacy and elections. in terms of antitrust, that is a long way down the road and will have to go through a judge. david: privacy is one thing, competition is a different thing. suppose he will start the investigation, what would you look at? we were told to look at advertising and search because they have such a dominant position. james: those are their primary areas. advertising and search. there will be a question as to whether they are dominant in those positions as opposed to the platform. you're looking at search for what? what type of advertising? what are the options. they will be fighting those
issues along the way. the more difficult issue is a court will have to find exclusionary behavior. just being big and efficient will not do it. david: that is the question, a bad act, either in getting the power or using the power. are there allegations that would give you cause to look at it? jennifer: i think there may be a few. this is so difficult. in this area of antitrust law, which is section two of the sherman act, everything is judged under the rule of reason. that means the court has to look at what the potential harm is from the conduct laid out and ask if there is harm, what is the harm, and then look at the legitimate business reasons. the reason the company added a term to a contract. they weigh those against each other. that is difficult to do. it is subjective as well. it is difficult to look at conduct and say does it or doesn't not violate the antitrust laws. the one thing that sticks in my
mind is what the eu found with respect to google and the restrictive clauses with third-party websites, that perhaps if they have a dominant position in online search advertising, this service, they have tied up all of these potential outlets for their competitors, maybe that could be something. david: let me jump three steps ahead. there is no liability. let's go to remedy. if you get asked that, and let's go specifically to the restrictive government changes referred to. if you're an investor, you think is this going to fundamentally change the company or will it be around the edges? james: assuming you have litigation, the interesting calculation google and others would have to make is what is the real risk the judge will impose a remedy, or remedy i cannot live with like qualcomm? then the question is what can i negotiate short of that that
still protects my basic business model? that is a calculus that will happen then. generally, you do not want to leave it to the court to impose those unless you think you are in a strong position, legally. there can be a lot of negotiation, a lot of solutions doesnsent as long as it not go to the basic business model. david: is not just the united states. you will need solutions in europe. that's go to europe. don.ve the competition law shehas not only re-upped, has increased her jurisdiction over digital. what does that say to you if you are google or facebook? jennifer: i think they should be nervous. she is a known quantity. we know where she stands. we also know that she is concerned about consumer data, the use of the data, portability of the data, and privacy. she also has rulemaking authority. she is interested in making
rules that relate to data. if you are facebook, you are probably worried about the future. jennifer: -- james: she could be a little nervous. from googlepeals and qualcomm on these fines, and that is the first time the court of justice, the general court gets to take a close look at those fines. we know last time at intel, that got reversed. david: an important decision .aker, not the ultimate to jennifer re-and james keyte. coming up, retired general mark kimmitt, we will discuss the new development with john bolton at the white house. this is bloomberg. ♪ devices are like doorways
that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure.
president trump says he fired national security advisor john bolton because he disagreed strongly with many of his position. hispresident tweeted he has resignation. bolton responded with his own tweet saying he offered to resign last night and the president responded "let's talk about it tomorrow." bolton had been scheduled to take part in a press briefing this afternoon on terrorism. boris johnson is pledging to work for an exit deal with the european union. parliament did not give him much choice. lawmakers blocked the prime minister's brexit strategy handing him his six legislative defeat in a row. he tried last week to get members of his own conservative party to back his strategy guaranteeing to leave the european union on october 31, even without a deal. they refused and johnson lost a key vote. executiveng, chief carrie lam is pushing back against protesters for seeking u.s. help. she calls that extremely inappropriate.
i strongly disagree with foreign interference in hong kong issues. i deeply regret such moves. we all have to be respectful to each other, especially on an international level. mark: demonstrators want the u.s. congress to pass a bill that would require an annual assessment of hong kong's special trading status. now that all four crewmembers have been rescued from an overturned cargo ship in georgia, officials are trying to determine how the accident happened. the national transportation safety board is investigating after the ship capsized sunday in georges st. simons sound. the men were rescued after spending 30 hours in tough conditions. they waited in the dark, breathing air filled with fumes in temperatures of nearly 150 degrees. all four are said to be doing well. 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: thanks very much, mark. the national federation of independent business released its latest survey on fall -- on small business confidence. though confidence remains in positive territory, it was the lowest in five months. we welcome david mcintosh, club for growth. good to have you back with us. give us a sense of where you are because this survey was in positive territory that it has come down and there is a fair amount of uncertainty reported among small business. david m.: i think we are seeing that in various sectors in the economy. . the fundamentals are very strong. you saw a very good job report earlier this month. we are seeing continued growth and investment across the board in the economy. what i think is happening is the tax cuts that were passed earlier in the trump administration have done well,
along with the deregulatory efforts. it is spurring economic growth. it is time to think about what is the next policy that should be put into place to continue that economic growth? one of them would be a tax cut for small businesses where you lower the pass-through rate to be closer to the 21%. another one we are urging the white house to consider is indexing capital gains for inflation, which would bring a lot of capital back into the market, benefit all sizes of businesses. david: i want to talk about indexes in capital gains. what about one other policy which would be to either resolve or back off or tone down the trade is be with china? there are particular places like wisconsin and pennsylvania that some people are saying that may even already be in a manufacturing recession. david m.: the numbers are still good in manufacturing. i think there is uncertainty about the future. what you are seeing a lot of companies do is build in
backstop for china. they are moving some of their distribution chains through vietnam and other asian nations. it is hurting the chinese more than us. we think tariffs are taxes on the american people, but we have come to understand what trump is doing is using those tariffs to force the chinese to the table to a better agreement that will -- when that happens, it will be a progrowth development. david: let's talk about possible tax cuts. one of the big issues is do you need congress to support those tax cuts or not? do you agree with a consensus that it will be impossible as we get into the election year to get congress to agree on anything approaching substantial tax cuts? david m.: i do think this congress will not pass that. they have moved erratically to the left on almost every issue. i can't see nancy even considering that as an agenda item, even if the economy were taking. -- thanking -- tanking.
bad for the rest of the country. i think the proposals that need to be put on the table are essentially,ng, taking an issue into the election year to go to the american people on. there is one, capital gains indexing that the president can do unilaterally by having the treasury department write a regulation saying we will consider inflation when we look at what the basis is when you invest in capital. that would have a tremendous stimulate of affect. david: let's talk about the tremendous stimulative effect. when it was reported a while ago, part of the reason was maybe we would not have to go to congress. there was a thought the administration could do it on their own. how big would it be? inflation is low, below 2%. it is on the capital gains part, a modest rate. how big would that be for the economy? david m.: kevin: what it -- david m.: what it does it look -- is it looks back to people who first invested. one of the tremendous effects is
bringing up people who have held onto capital investment because they do not want to take the hit on the capital gains, even a lower rate. they would prefer to keep it where it is. even if that is not the best place to deploy that capital. that is how you get the stimulation. i have asked our guys to look at the models and see what exactly that number would be but i think it would be commenced with significant tax cuts that lowered the rates. david: finally, you have supported the president on his tax policies, deregulation policies. are you concerned about the rate of turnover in the white house? bolton, notjohn your area, but are you confident the president can achieve what he needs to over the next 18 months if there is turnover at the seniormost levels of the white house? david m.: what he is doing with the bolton is adjusting his foreign policy team. on the n at -- on the economic
team, he has a larry kudlow and mick mulvaney who i think are in strong positions and frankly, great advisors for the president. better thanogether you can imagine team. i'm confident they can get the job done. you have got resistance at the treasury department to anything that looks like a tax cut. by the president has been able to overcome that in the past. david: really appreciate it. always do. that is david mcintosh, club for growth president coming to us from washington. coming up, we will get more on the firing of john bolton. we talk with a retired general mark kimmitt. this is bloomberg. ♪
of power." i'm david westin. president trump surprised everyone over the weekend when he announced a secret meaning with the taliban at camp david would not go forward. the president did so again earlier this hour when he fired his national security adviser john bolton who had a been uncomfortable with the idea of bringing taliban leaders to the u.s. for talks. we welcome bluebird chief content officer, marty schenker for more on the story. big surprise? >> i think the suddenness was a surprise but there has been much reporting by ourselves and others that there were disagreements between the president and john bolton and between, more importantly, mike pompeo and john bolton. the fact is not a surprise, but the suddenness is. david: this is speculation, do we think it was afghanistan? 's that would triggered this or has this been -- or has this been building up? marty: i think there were other policy disagreements. there was reporting this month or a while ago that bolton's
stance on iran was so strident that donald trump himself was uncomfortable with it because he was looking for some grand way to have talks with iran. it is interesting that oil spiked down when john bolton had -- when headlines hit on john bolton with the idea that an aggressive stance in iran macy's to exist. david: when you talk about the strident views of john bolton on iran, those were taken before he was in the white house. this was not a secret, everyone knew what john bolton thought about iran. marty: if you want to make sense of personnel decisions on the white house, we could have a whole show on that. you would have thought he would have expressed himself fully and clearly to the president before he became national security advisor. this should not come as a surprise. david: in so far, and we do not know, but as this may affect policy around the edges, besides iran, where might it affect policy? north korea? john bolton didn't seem to like
that idea very much. of thethe foreign policy united states resides with one man and that is donald trump. anybody who works around him either tries to fashion his views along what they anticipate donald trump wants or they will be out. it does raise questions of who is going to take this job to replace him. david: will that suggest the importance of people around him are not so much as they advise him but they reflect what he's thinking, and might it be he is thinking he would like to negotiate with iranians, wants to negotiate with kim jong-un, maybe he wants to head that direction? marty: it's quite possible that is a prelude to another attempt to engage iran. it is very unlikely that that will happen. his major policy initiatives have not borne fruit and maybe just feels if everybody just gets out of the way, i can do this myself. david: wouldn't be surprised. marty schenker, chief content officer, thank you. for more, we welcome mark
kimmitt who served as a general in the army. general kimmitt has held senior leadership positions at the state department and he comes to us today from washington. us.k you for being with you know afghanistan so terribly well. you know the foreign policy apparatus of the u.s. government. why do we think that president trump made this move now, did it have to do with the aborted attempt of a discussion at camp david over the weekend? mark: i think marty has it exactly right. afghanistan may have been the tipping point, but there have been significant disagreements between the president and john bolton for quite some time. look, president trump is a dealmaker. john bolton is an ideologue. the joke in town is that there is not a country that john bolton doesn't want to invade. when president trump wants to open up discussions with north korea, with iran and others, and john bolton says no, that's the
worst thing, we have spent 25 years bringing these countries into line and this is the opportunity to do it, sooner or later, those clear policy differences between the president and john bolton, as there have been differences with jim mattis and his last policy flynn, andke mcmaster, the president is going to stick with the people he wants to listen to and whose advice he trusts. david: what is the driving forces of president trump in these things? in syria, we had the situation with the jim mattis. that was because president trump unilaterally said it lets pull our troops out of syria and general mattis disagreed with that. how is the situation in afghanistan where president trump said i want to get out of there, is not the driving impulse, he wants to pull back? mark: as you and i have talked about since the days of his campaign, he said we need to get out of these stupid wars.
candidly, any secretary of state, secretary of defense, national security advisor that believes he can come in and principles about ending significant involvement in these wars, at the end of the day, as marty said, the final decision is made by the president, not only on the policy but the personnel he listens to. david: but that raises the question about what the consequences of these various policy decisions might be. we had general mattis on yesterday talking about afghanistan and what was required. he made it clear that he thought in order to do the job that needs to get done, we have to keep troops in there. >> we cannot do that right now without boots on the ground. we are going to have to stick with those countries that are not yet ready to do it on their own and keep enough boots on the ground, probably the number dropping year by year as they mature. but enough boots on the ground not to simply turn the ground back over to the enemy that attacked us before. david: general, is that your assessment?
you know the situation well. do we need to keep boots on the ground, some number of troops in afghanistan for the time being, if we are not going to have it dissolve? mark: i think we need to go back to 2010 when the same conversations were being held with president obama. the same advice was being given to him about keeping troops inside of iraq. we had a proposal at that time to keep 5000 soldiers, and to do the same thing jim mattis is talking about in afghanistan. counterterrorism operations, training, advising, assisting. the same model is one that jim mattis is promoting here and president obama apparently didn't listen to it about iraq and it seems president trump at this point is not considering that for afghanistan. but i am hearing some different comments coming out from the president recently. i think he is more amenable to leaving 5000 troops inside of afghanistan, the way he didn't pull all the troops out of
syria. i think you can actually find a middle ground on this where candidly, the last administration did not on iraq. i think we are still living with those consequences. david: remind us what is at stake. tomorrow is the anniversary of 9/11. let's be frank, al qaeda was based there with the taliban in afghanistan. what is the risk that we pull out too precipitously, that we will end up with a similar situation? mark: first of all, it was not just al qaeda that was in afghanistan for the last couple of years. it has also been the chorus on, isis. there are significant numbers of terrorist operations going on i'm terrorist groups, training and finding sanctuary inside afghanistan. as a predicate to this agreement, we are led to believe the taliban will take over the responsibility to keep terrorists out of afghanistan. i find that frankly ludicrous, which is why i think it is
important for us to keep people inside there. whether the taliban government wants it or not, we have to be able to attack and kill terrorists who would threaten the u.s. or finding safe haven, training, and sanctuary inside afghanistan. plain and simple. david: we have civilian control of the military as a time-honored tradition here. there is always some tension. at what point are we not well served by a president who does not listen sufficiently to his military leadership? what is a military telling president trump with respect to afghanistan? mark: as you said, civilian control of the military, the military does not tell, the military recommends. the military makes the argument based on the best available intelligence, in the assessment of these fighters. this is their recommendation. at the end of the day, as marty said and we know, the president makes those decisions. whether it is the type of decision that led to what happened in iraq in 2011 and
2014 through now, or if we see that repeat inside of afghanistan, i don't think anybody recommends the military takes over because the president made a bad choice. david: certainly not. he is the president of the united states. we have one president at a time and we have to do what he decides. it is a hard job for him. is it possible john bolton, on the question of afghanistan, may have been right? that we needed to take a more hostile position with respect to the taliban? hearing, theat i'm hostile position was towards the notion of embracing the taliban on september 11. that is a holy day for those who have lost people in the twin towers and inside the pentagon. not simply optics, but what it tells those soldiers who are still being attacked and killed by the taliban, that our president is holding hands with them at camp david. i think it also goes to the issue about john bolton, now who
is saying he has offered his resignation and was not fired. it may be, like jim mattis, that john bolton was in such disagreement with the president that he could not serve his president because of their policy differences and it was better to find somebody else as the president did after jim mattis resigned. david: ok. mark: that's the system, that's how it works. david: thank you so much. great to have you on. that's general mark kimmitt coming to us from washington. coming up later, bloomberg businessweek is live with morgan stanley ceo james gorman from columbia university. he will join jason kelly and carol massar for 30 minutes on bloomberg television and radio at 2:30 eastern time. this is bloomberg. ♪
frankfurt auto show is ongoing in frankfurt. our colleague, matt miller, spoke to lamborghini ceo. he asked about lamborghini's plans to build a hybrid and much more. the issue where we are talking about the super forecast. theright direction, situation we are in this moment is the only way so far to find the right solution. that is why we want to be different in our solutions. but for sure, this is a first step in the direction. hybrid is the future of lamborghini. matt: your customers are obviously some of the wealthiest people in the world. but still it is important to watch for us, in the market, to watch their spending behavior. what is the health of the wealthy consumer right now around the world? stefano: so far, from what we can see in our analysis and see
how it has affected the world of lamborghini, it is very good. of course, we are talking about a thousand cars. a tremendous number if you think about where we were three years ago. it seems very strong. there is a lot of attention of why they are spending. we can see that from another index of personalization that we see on each car that is growing. that means there is the need of having a unique toy, a unique jewel that they want to have for their own. matt: so you can sell basically as many cars as you produce. how many cars do you want to sell in the coming years? what do you think your production numbers will look like in 2020, 2021? stefano: i will say the growth of the numbers will be this year we will be over 8000. we have figured out that is the right dimension with a
portfolio. if you look at the value of the car today, what the demand of the market is for lamborghini, this is really spot on. we do not have to be higher because it will be easy to open it. that is the trend i see in the next couple of years. matt: is 10,000 a regulatory cut off? is there a level at which you cannot sell anymore v twelves -- 12's? stefano: the new product can come later, or if there will be say what it, i would said before. that is the target to make sure that it has the right value so far. matt: but you don't see the trade war or brexit having much of an effect on the high that is for individuals? stefano: we have not seen anything on that. analysis, we make the we try to be balanced in terms
of the different markets. america, india. we need to be balanced because -- that is our strategy. we have not seen anything so far. david: that was the lamborghini ceo from the frankfurt auto show. sign-up up for the balance of power newsletter at bloombergpolitics.com to get the latest on global politics in your inbox every day. check out and i balance on the terminal. s event isoduct moments away in cupertino, california. bloomberg will have coverage as tim cook takes the stage and announces the latest apple products. live from new york, this is bloomberg. ♪ bloomberg. ♪
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bolton because he "disagreed strongly with many of his positions." the president tweeted that he asked bolton for his resignation yesterday and bolton responded with his own tweet saying that he offer to resign last night and the president responded "let's talk about it tomorrow." bolton had been scheduled to take part in a press briefing on terrorism. washington is stepping up the campaign to put more pressure on iran. mike pompeo said that iran is world by deceive the refusing to cooperate with the international atomic energy agency and the u.s. has been increasing sanctions on iran since they withdrew from the landmark nuclear deal last year. pakistan is warning india that couldcupation of kashmir launch the nuclear armed countries into a "accidental war ." tensions have been escalating since last