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tv   Squawk Alley  CNBC  August 2, 2016 11:00am-12:01pm EDT

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incomes also rose. so far autosales have been disappointing. we're watching crude oil very, very quickly. with that, kayla, i send it to you for "squawk alley." >> thank you, sara. in the meantime it is 8:00 a.m., 11:00 a.m. here on wall street. "squawk alley" is live. ♪ good tuesday morning. thanks for joining us on "squawk alley." with me here for the hour, david faber and mike san tolli.
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carl kin nquintanilla is on assignment. also jessica, and mike isaac, technology reporter at numbs in the meantime. good morning to both of you. we start with our top story this morning, facebook taking on snapchat once against with a new instagram product called stories. the product will be built into the instagram app includes face filters, and location tags. it's been -- it doesn't end there. facebook is also tests video ads as a way to monetize the new sometimes controversial feature. jessica, interesting to see facebook go at snapchat yet again trying to build their own product. they tried to acquire snapchat is the third time a charm? >> we'll see. >> this is interesting if you look at instagram. it was the hot app for a long time, but people are posting
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less to instagram. that's a big problem, because it could lead to lower engagement down the line. i think this new product is really a grasp to change that, to make a lower part to posting in the hopes that people will post more, because the photos won't be around as long. as we've seen, that's something people like to do on snap did the chat, but a lot of open questions, but i think about getting that posting number back up for instagram. >> mike, you broke this story overnight, and you broke kitchen westerman as saying other companies tea deserve all the credit. >> i think it was kind of hard for instagram and kevin to really deny that snapchat pioneered the format here. if they would have postured and said that this was fully original, it probably would not have been smart. kevin in an interview last week we were speaking and essentially he was saying he seeing it as a
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type of new form ma. if you think about how facebook and twitter pioneered the scrolling news feet, he thinks stories will be a similar thing. is that a rationalization? i don't know, you tell me, but that seems to be the explanation. it just a matter of has been? we hear about these fine differences between the sorts of content people put across snapchat and post to instagram and the like. is there an open field to penetrate what snapchat has?
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whereas classically instagram has been a seen where you spend the time getting the perfect shot of your coffee or a beach or something that means let sharing by the very nature of these networks. if instagram can find a way to lower that bar and beef up sharing, that's a good thing. at the means they can lerchs half a billion users, and immediately kick off that sharing. >> there seems to be some sharing going on by wee see how the rest -- uber's deal with didi, china's ministry of commerce is raising a red flailing, saying the companies need its seal of approval.
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i believe that 87% number is didi's share alone. no question this would be a monopoly, but can you have a mo nope reply -- i think there's no way that the chinese government isn't going to approve this merger. it represents darling -- and bringing on board a silicon valley so of course they're going to say they're looking at it. >> mike, something that ultimate -- is the fact that once this deal closes, meetings of investors will be quite interesting. you'll have apple, you'll have google, alibaba, ten cent,
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baidu. it's going tosh -- you know, it sounds like every kumbaya. it's hard to look at uber's capitalization without on wondering -- the real question for me is there was this alliance from didiand a bunch of other companies in lift in the united states, grab. ola, which are different ride-sharing companies in different continents and countries. lyft has been icing in -- and the partnership between it and the rest of the countries seem far less.
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>> i believe there will be a lot of ripple effects throughout the ride-sharing industry. obviously there have been rumors about a lyft acquisition. you know, the company is basically denies those, but i think there's no doubt as they ride-sharing companies are strategic and lyft continues to be in a tough position internationally there will be a lot of buzz and probably talks about acquisitions as well down the line. >> i think it reviews a road block for sure. i think trevor is in no rush. i think em -- so i feel out in
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the valley they're starting to think more about ipos, so we should be in a different position six months from now. maybe there is even real fear, but there's not a lot of up side for him in leading that -- all of these different initiatives in front of the market. >> there you want to see something for the investors who are clearly pushing for some sort of return at this point, especially venture capitalists who want a return far quicker than some other bigger investors. so i do think it probably expedites that ipo timetable.
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however long that takes, who knows, but the balance sheet will look a lot better now that they're not burning tens of millions a week in china right now. >> it's hard to know ma expediting. we want to wait as long as possible actually mean. mike isaac, jessica, thanks to joining us. berkshire hathaway's ceo warren buffett has called out donald trump. our john harwood is in washington with the latest. >> what makes warren buffett as a surrogate for hillary clinton against donald trump is buffett is much richer, and more successful in business. he used that authority in omaha yesterday to undercut trump in trump's unusual argument over sacrifice with the parents of a fallen iraq war soldier. >> no member of the buffett family has gone to iraq or afghanistan. no member of the trump family
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has gone to iraq or afghanistan. we have both done extremely well during this period, and our families haven't sacrificed anything, and donald trump and i haven't sacrificed anything. but how in the world can you stand up to a couple of parents who have lost a son and talk about sacrificing because you were building a bunch of buildings? >> buffett also challenged donald trump to release and compare that i tax returns. donald trump says he can't do that, because his returns are under audit. buffett says he's under audit, too. >> i would be delighted to meet him any place anytime between now and lee electric. i'll bring my tax return, he can bring his tack return, nobody is going to arrest us. there are no rules against showing your tax returns, and just people ask us questions about the items that are on there. >> reporter: now, donald trump's response to warren buffett was
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telling in a fox interview this morning. he said that hillary clinton is a disaster, but he said not one negative word about warren buffett. he said he's a democrat and friend of hillary clinton, and i think that's fine. >> john harwood, appreciate that. >> let's get a check on the markets. we do have selling across the board. on track for the seventh straight day of losses of the dourge, you see down 104 points. i they are we're only down -- but it has been pretty consist president it's prevailed since about july 14th. also check out shares of home depot. steve festiefel saying -- >> but it still has the fundamental drivers, also mcdonald's the company says it's phasing out corn syrup on the hamburger buns and will use
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sugar instead, and it's eliminated all article tirr preserve tiffs from its chicken and breakfast menu. our next guest says there's three media stocks you should by buying into the fall. and we'll take you to the event for the first look at the galaxy note 7. theranos' ceo breaks her silence and responds to critics. more "squawk alley" is up next. there are many things you don't want in industrial strength- like cologne. morning! but there's one thing you do. (gags) it's called predix from ge. the cloud-based development platform that's industrial-strength strength!
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breaking news. let's get to phil lebeau. >> kayla, not a lot of news from the automakers where they have beaten estimates, but this is an xoimt. toyota coming in slightly better than expected. the estimate from edmunds.com was for a decline of 2.1%. germanly speaking, kayla, we're seeing all of the sales estimates coming in weaker than expected. the sales rate which we get later on today, that's expected to be about 17.4 to 17.6 in terms of the sales rate, which would be roughly in line with where we've got for a whole year. a strong month, nonetheless, back to you. >> thanks so much, phil. meanwhile, breaking news on politics as well. president obama welcoming the prime minister of singapore to
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the white house this morning, preparing for a joint press conference, which is ongoing now. we'll monitor the headlines and bring you anything you need to know. media stocks, as many people know have had a rough ride. certainly fears about cord cutting have weighed on the sector, but our nest guest says the focus should be on alphabet, facebook and ten cent erchlts alphabet and facebook getting more and more of the share, but let's start with ten cent. it's a giant in china. >> yes, it is. it's a huge capitalization, a huge company. they control the world's probably at this point second largeers social network, which is we chat. >> they play games online, and they generally use ten cent as
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the premier channel for playing games. they have built their from which around that. you and i talked about this earlier facebook has numbers that come up to that. they're citing a number of different sites, messenger, instagram. what are the growth rates like at tencent? i know you, you typically look to be a value guy. >> remember, this is one investment it's a medium-size investment, but we have a lot of confident long term in china. we want to be careful there now, but it's a powerful franchise. they licenses to play
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activision, fifa soccer, run by really astute management. they own more than 20% of jd.com, so they have their hand in there as well. we just want to be exposed. we think it's quality. it does have a multiple. we haven't added to it for a while, but we've owned it for about a year, and we're pleased with the investment. >> you've been covering or investing in media stocks for a long time. i remember talking to you i don't president to say how many years ago, but back then it would be liberty media, or whatever incarnation it was after some of these old media names. >> we still have liberty. >> you still love liberty. >> we like charter. we really like the fact that john malone has a great deal of confidence in the management of charter. i think the new charter is a really exciting company. >> why? >> well, number one, i think the broadband business is a great business. anything that you want to lean
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back and watch over the net, lean back and watch with a lot of pixels and a lot of resolution, you need broadband. now the broadband companies tie that up with wifi, so your buy phi system at home is tied to that, and now they provide wifi outside of the home, so they become an extremely valuable service, a very high-profit margin business, and they can use this to sell double and triple packages. both, for example, charter and more recently comcast have been gaining share of tv viewership even as tv viewership declines. we like liberty broadband in particular, because i would rather by on john malone's side than not on his side. >> that has paid off over the longer term. >> yes. >> though there's continued concern overall about the environment in which people are cutting the cord or going to the streaming packaging or
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unbudling. i have not heard you talk about content providers. is that an area you want to stay away from? >> i think content providers are great. the problem is a lot of these companies reflect -- we did well with it. at some point we may go back to it, but thoef a problem of declining viewership in their core channels, and we really want to see them go ahead into skinny bundles, so they can moderate that rate of decline. >> how do you differentiate your performance versus user peers, when you go after names like alphabet and facebook, which everybody else owns, too. >> we try to find things that when we own -- and as long as they appear to be attractively priced -- we bought or first google on the ipo. i wish i kept all of that, but
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we still have some of it. we're family with these companies, we've met the management. the fact they may be popular now doesn't bother me in and of itself. >> morris, we have to leave it there, but it's an ongoing conversation. >> thank you. >> thank you. when we come back samsung lifting the curtain on the latest handset device. we'll have a live look up next. plus as donald trump talks up his business credentials, the clinton campaign is lining up ceos in their corner. the latest from the campaign trail, coming up. yep. stirred it... mm-hmm. drowned it again... mm-hmm. and now just feel if it's cold. yeah. cool. [camera shutter clicks] [whistling a tune] smokey just gave me a bear hug.
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and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ samsung unveiling the latest smartphone, the fab-let is waterproof and includes an iris scanner for additional security. the company making its announcement at the launch. rival apple is set to release the iphone 7 in september. samsung has taken this tack of making its announcements to get in front of apple, but it has sti
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still. >> it's not as if apple will take any cues from it it's not as if there's any horse race for features, but there is a certainly camp out there that says iphone gets all the attention, but maybe in every respect is a better product, and this is maybe samsung's attempt -- >> this is one of that you are business intersurprise focused devices. some of the waterproof pen, and eye rick scanner. are those important to any businesses? >> maybe it just tells you how good smartphones already are. >> and jim cramer is like, what are you expecting? a car that takes you to mars? we're not there yet.
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we'll keep an eye on the event. and we're awaiting a campaign rally live in ashburn, virginia. of course, virginia the home state of hillary clinton's running mate tim kaine. we've bring you any news as it develops. mean snim as trump talks up his business credentials hillary clinton's campaign is lining up those ceo. warren buffett the third billionaire to speak on clinton's behalf. he challenged her opponent to release his tax returns. take a listen. >> i've got news for him. i'm under audit, too. i would be delighted to meet him any place between fwhou and the e. i bring my tax return, he could bring his tax return. nobody is going to arrest us. there are no rules against
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showing your tax returns. just let people ask us questions about the items that are on there. joining is ceo of parkstreet. and at post 9 ben white. ben, i'll start with you. buffett has a track record. he supported gore, kerry, obama what democratings are trying to do is make the case to the electoral that donald trump is not that great of a businessman. one of his selling point is look how successful i am. you saw buffett saying when it was a publicly traded stock, it is not very good.
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-- so that's what all thinks billionaires are about castigating trump's record, and to get under trump's skin. billionaires making fun of him drive him nuts. you st. you saw that with bloomberg, so get under his skin and make his business record look weak. meanwhile, to the white house, where the president and the prime minister of singapore are currently stealing questions from reporters. >> reporter: secondly, sir, on libya, you've said in the pass the worst mistake may have been your failure to plan for the aftermath of the 2011 nato intervention. do you see the new decision to bomb isis there as a direct
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result of that? >> yes, i think the almost nominee is unfit to serve as president. i said so last week, and he keeps on proving it. the notion that he would attack a gold star family that had made such extraordinary sacrifices on behalf of our country the fact he doesn't seem to have basket knowledge around critical issues, in europe, in the middle east, in asia. means he's woefully unprepared to do this job. >> this is not just my opinion.
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i think what's been interests is the repeated denuns a's of his statements by leading it republicans, include the speaker of the house and the senate jersey leader and prominent republicans like john mccain. the question i think they have to ask themselves is if you are repedestrianedly having to say in very strong sturges that what he has said is unacceptable, why are you still endorsing him? what does this say about your party that this is your standard bearer?
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this isn't an episodic gaff. this is daily and weekly, where they are distancing themselves from statements he is making. there has to be a point at which you say this is not somebody i can support to president of the united states. evening if he purports to be a member of my party. the fact that that doesn't happen makes some of necessary denouncements hollow. i don't doubt their sincerity that they are outraged about the comments made about the khan family, but there has to come a point at which you say somebody who makes those kinds of statements doesn't have the
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judgment, the temperament, the understanding to occupy the most powerful position in the world, because a lot of people depend on the white house getting stuff right. this is different than just having policy decisions. i recognize they all profoundly disagree with myself or hillary clinton on tax policy or on certain elements of foreign policy. but there have been republican presidents with whom i disagreed with, but i didn't have a doubt they could function as president. i think i was right and mitt romney and john mccain were wrong on certain policy issues, but i never thought that think
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couldn't do the job, and had they won, i would have been disappointed but i would have said to all americans, this is our president and i know they're going to abide by certain norms and rules and common sense will observe basic decency. will have enough knowledge about economic on policy and foreign policy and our constitutional traditions and rule of law that our government will work and we'll compete four years from now to try to win an even electric, but that's not the situation here, and that's not just my opinion. that is the opinion of p.m. prominent republicans.
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there has to come a point at which you say, enough. the alternative is the sbifr -- effectively endorses and validates the positions that are being articulated by mr. trumped. as i said in my speech last year, i don't think that represents the views of a lot of republicans out there. with respect to libya i have said on several occasions that we did the right thin in preventing what could have been a mass terr, a bloodbath, and we did do as a part of a coalition and under u.n. mandate. but i think that all of us collectively were not taken i have been to what happened the
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day after and the day after that to ensure that exterior structures were in place to -- the good news is that we now have the beginnings of a government they are serious about trying to bring all the factions together, to begin to monitor libya's border and cooperate internationally to deal with issues like isil penetration on their territory. and at the request of that government, after they had already made significant progress against isil.
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and had essentially pushed isil into a very confined area in and around sert, it's in our interests to make sure they finish the job. we're working with them to ashirr that isil does not get a strong hold in libya, even as libya begins what is going to be a long process as to establish a functioning government. so the good news is that they recognize this terrorist organization in the midst is contrary to their national interests as well as the world's, and, you know, we're
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hopeful that having completed this process of driving isil out, they will be in a much to start bringing the parties together inside that country. not only us, but the europeans and other cunning around the world have a great interest in seeing stability in libya, because the absence has helped to fuel some of the challenges that we have seen in terms of the migration crisis in europe and some of the humanitarian tragedies we have seen in the open seas between libya and europe. >> this question is for prime minister lee. you've talked about the rebalancing, how do you envision this proceeds in the next 50 years? and what role do you see
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singapore's role? what are some of the issues they're likely to face as the u.s. hopefully continues its rebalance. you've mentioned bipartisan links that singapore has had with nine different u.s. presidents. how would we address a u.s. leader which adopts a stance that's more closed off, for example, we see that in november president obama i have a question about the mill their collaboration, which is a cornerstone between sin apour and the u.s. especially coming on the heels of the medical team to the global -- with the rising threat of terror in asia, anded rest of the world. the potential for military confrontation, how do you see singapore features in u.s. plans to address this going forward? last question, four more years is a phrase that i think you've
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been hearing a bit in the past few weeks and months. while that's not possible, if it were, how would you continue developing rentalsships with singapore? what would be your key focus going forward? >> well, 50 years is a very long time. 50 years ago, nobody imagined what the world would be like today or what singapore would be like today. and that we would have such a deep and broad relationship and so many things to do together. we would like to build on this for the next 50 years. it depends on how we -- each of our country doeses in singapore where they're also to remay -- in america, whether you remain one of the dynamic, vibrant leading economies in the world in a world in which there's
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powering of create activity, technology, science, progress, but yesterday unique participate with a history of contributing to the world, not just for your own interests, but because you believe that the world will be a better play for all countries. if america can do that, and if singapore can maintain our success, then i think there are many opportunities for us to make common cores on together and the rebalancing will sustain and endure for many years to come. it will be a very different world. countries will grow, demographics will have a big factor to -- they will have to do something somehow to turn it around. otherwise, another 50 years appeared you would have a very small country left america has a
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demographic change, the population is not shrinking, but the population is changing. we have a new world maintaining -- and ourent to compete, and yet knowing it's not going to be the same as testifying in 1946 when america was half the world's gdp. -- or one quarter. so that's the crucial factor over the next 50 years. i don't think this is the right forum for me to talk about u.s. politics in public at this moment. we will work with whoever is the u.s. administration, whichever party. we have worked with five republican and four democrat
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administrations, appeared our experience with presidential elections has been that many pressures build up during the election campaign and after the election and a calmer, cooler atmosphere, positions are rethought, state strategies are nuanced, and a certain balance is kept in the direction of the ship of state. it doesn't turn completely upsidedown. the americans take pride in having a system with checks and balances so that it's not so easy to do things, but it's not so easy to completely mess things up. [ laughter ] and we admire that, and sometimes we depend on that. >> he's absolutely right. the wisdom of our founders. with respect to military
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cooperation, obviously singapore is a small country, but it punches above its weight, because so much of our work in the asia pacific region is not a matter of active conflict, but rather realtying an architecture, a framework of rules and norms that keeps the peace, and that has underwritten security for the region and for us, for many years now. and singapore is so often the adult in the room, the level head that can help us work with countries in a wide range of issues, to help defuse tensions.
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in in many ways the diplomatic work is as critical, if not more so, with the military work. when you think about cyberthreats, or our concerns about sanctions, or being able to counter-message isil in a place like southeast asia, and ensure information sharing with countries where there may be a budding terrorist threat. those are all issues of military finesse and intelligence those are areas where singapore excels. so in addition to being an important logistical hub and
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center for our operations, the partnership that we are able to maintain helps us to work with a whole range of other countries much more effectively than we would if singapore weren't there and we were having to just try to gather up all these countries individually. that's where asean and the east asian summit has been important, because it's institutionalizing many of these practices, in ways that hopefully avoids conflict in the first place, which would be in everybody's interests. as far as where the relationship goes, i think the prime minister is absolutely right. 50 years from now it's very hard to anticipate where we're going, but there are certainly trends that i think are inevitable. the asia pacific regionnagion w
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continue to grow and will continue to account for a larger share of the world's economy. there will be countries in the southeast asian region that look to follow the path of singapore into a mature, advantaged economy. it's going to be a big market. the united states is still going to have a massive interest in maintaining itself as an asia-pacific power, and in maintaining strong bonds of trade and commerce and scientific exchange, educational exchange, and given the close strategic interests, but maybe even more importantly the people ties between america and
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singapore, i think we can anticipate that will be just as strong 50 years from now as it is today. since apour has to take into account not just america's interesting. china is a big neighbor. there are strong commercial ties, cultural ties there as well. in that sense singapore can actually sieve as a used partner with us and with china to ensure the relationship moves in a productive way, which i think would be in the interests of both countries. so, you know, this is going to be a central engine for world growth. if we do a good job in ensuring a rules-based order, continuing to promote greatest transparency and reducing corruption in the
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region, so that all people are benefiting from the rapid growth that's taking place, i think the future 250 years from now will be bright. jordan fagan? >> reporter: thank you, mr. president. you're here today touting the transpacific partnership, but hillary clinton is against it, her vippial nomination tim kaine has now reversed it. donald trump is, too, means the next president is against this deal. if you take both candidates at their words, how do you get congress to pass this deal during the lame duck? and masses your plan to convention them to do so? secondly security officials have said they're almost certain that the hack of the democratic national committee came from russia. does it look like russia is meddling? and what should that have with the administration's
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relationship about moscow. >> well, right now i'm president, and i'm for it. i think i have the better argument. i've made this argued before, and i'll make it again. we are part of a global economy. we're not reversing that. it could be reversed, because it is driven by technology and driven by travel and cargo containers, and the fact that the demand for products inside of our country means we've got to get some things from other places, and our export sector is a huge contributor to jobs and our economic well-being. most manufactured products now involved a global supply chain
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where parts are made in all corners of the globe and converge, and then get assembled and packaged and sold. and going to pull that uproot and branch sun realistic. point number one. point number two -- it is absolutely true, the evidence shows, that some past trade deals have not delivered on all the benefits that were promised, and had very localized costs. there are communities that were hurt because plants moved out. people lost jobs. jobs were created, because of those trade deal, but jobs were also lost, and people who experienced those losses, those communities, didn't get as much help as they needed to, and what is also true as a consequence of
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globalization and automation, what you've seen is labor, workers, losing leverage and capital being mobile, being able to locate around the world. that has all contributed to growing inequality, both here in the united states, but in many advanced economies. so there's a real problem, but the answer is not cutting off globalization. the answer is, how do we make sure that globalization, technology, automation, those things work for us, not against us? and tpp is designed to do precisely that. number one, it knocks out 18,000 tariffs that other countries place on american products and goods. our economy currently has fewer terroria tariffs, is more open than many of our trading partners.
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so if everybody agrees we're going to have lower tariffs that's good for american businesses and american workers, and we should want that. we should pursue it. number two -- the complaint about previous trade deals was that labor agreements and environmental agreements sounded good, but they weren't enforceable the same way you could complain about tariffs and actually get action to ensure that tariffs were -- were not enforced. well, tpp actually strengthens labor agreements and environmental agreements, and they are just as enforceable as any other part of the agreement. in fact, people take them so seriously that right now, for example, vietnam is drafting and presenting unprecedented labor reforms in vietnam.
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changing their constitution to recognize worker organizations in vietnam for the first time. so what we're doing is, we're raising standards for workers in those countries which means it's harder for them to undercut labor standards here in the united states. the same is true for environment standards. the same is true for things like human trafficking. where we've got a country like malaysia taking really serious efforts to crack down on human trafficking. why? because tpp says you need to. it gives us leverage to promote things that progressives and people here in this country, including labor unions, say they care about. so if you care about preventing abuse of workers, child labor, wildlife trafficking, over
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fishing. the decimation of forests. all of those things are addressed in this, in this agreement. i have not yet heard anybody make an argument that the existing trading rules are better for issues like labor rights and environmental rights than they would be if we got tpp passed. and so i'm going to continue to make this case, and i've got some very close friends, people i admire a lot, but who i just disagree with them, and that's okay. i respect the arguments that they're making. they're coming from a sincere concern about the position of workers and wages in this
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country, but i think i've got the better argument and i've got the evidence to support it, and hopefully after the election is over and the dust settles, there will be more attention to the actual facts behind the deal, and it won't just be a political symbol, or a political football. and i will actually sit down with people on both sides, on the right and on the left. i'll sit down publicly with them and we'll go through the whole provisions. i would enjoy that, because there's a lot of misinformation. i'm really confident i can make the case, this is good for american workers and the american people. and you know, people said we weren't going to be able to get the trade authority to even present this before congress, and somehow we muddled through and got it done, and i intend to
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do the same with respect to the actual agreement. you had a second question. that was a long answer. i was, i apologize, mr. prime minister, but every once in a while -- >> [ inaudible ]. >> oh. the fbi is still doing an investigation. you're right that there have been some assessments made that this might have been a russian hack. what i can tell you without commenting on the specifics is that there are a lot of countries out there that are trying to hack into our stuff. governmental, databases, but also private sector databases and not-for-profit databases and this is why we've stood up such an aggressive effort to strengthen our cyber security. and we have provisions in place where, if we see evidence of a malicious attack by a state
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actor, we can impose potentially certain proportional penalties, but that requires us to really be able to pin down and know what we're talking about, and so i don't want to get out ahead of the legal evidence and facts that we may have. in order to make those kinds of decisions. more broadly, we're trying to promote international norms and rules that say, there are certain things that states should not be doing to each other when it comes to cyber attacks. there are certain things that are out of bounds, and those norms, i think, are going to slowly build and get more, more adherence over time, but it's -- we're still early in the process. i mean, in some swways the
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explosion of the internet and importance to our communications systems has somehow outstretched the legal to protect them and we're playing catch-up and have to keep on at it. in terms how it affects our reship with russia, look, i think we've already got a lot of differences with russia on a whole bunch of issues, but i think that we've been able to try to stay focused on those areas where we still have a common interest, understanding that we have deep disagreements on issues like ukraine, but perhaps, potentially, we have an interest in bringing an end to violence in syria. how do we balance those issues? that's pretty standard state craft at this point with russia.
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if, in fact, russia engaged in this activity, it's just one on a long list of issues that me and mr. putin talk about. and that i've got a real problem with. and so i don't think that it wildly swings what is a tough, difficult relationship that we have with russia right now. but it's not going to stop us from still trying to pursue solutions so that we can, for example, implement the minsk agreement and get russia and those separatists to lay down arms and stop bullying ukraine. that's not going to stop us from trying to make sure that we can bring a political transition inside of syria that can end the hardship there. >> can i say something about the tpp? i don't want to wait until domestic politics, but looking at it from somebody on the other side of the pacific, who has
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been intimately involved, and, in fact, triggered the whole process, because we started the p4, a little fda on which the tpp falls and just has become this important initiative. the economic arguments for the tpp in terms of trade i think the president has presented them eloquently. what the benefits are to american companies. it's a deal which the countries have negotiated, each one providing market access on their side in return for gaining market access on the other side. each one committing to rules in exchange for the other side committing to rules. it's a hard-fought bargaining process. the negotiators spend many trips, many nights, many dawns, and fought it out, but actually at the end of it, everybody must decide, is it a plus or a minus for them? and i think in

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