tv Bloomberg Markets Trump First 100 Days Bloomberg March 21, 2017 1:00pm-2:01pm EDT
watching. president trump is warning house republicans they could lose their seats in midterm elections if they do not support his bill to replace obamacare. we would hear from two different lawmakers, one who supports and one who is skeptical. you are looking at a live shot. neil gorsuch, he has made no promises on how he would rule on cases. he is facing opposition from democrats in his second of confirmation hearings. new restrictions of people flying to the u.s. in the middle eastnd north africa. they will have to store their devices in jet baggage. how that could affect the airline industry. ♪ david: president trump warned house republicans and a closed-door meeting many could lose their seats in the 2018
midterm elections if they do not pass the bill to replace obamacare. that comes a day after leaders made several changes to the measure aimed at wooing reluctant republicans. house speaker paul ryan spoke about how effective he was in selling the bill. rint -- paul ryan: he knocked the cover off the ball and explained it to members how it is important to unify, to work together, how we are advancing our principles and doing what we told the american people we said that we would do. this is our moment. it is a big moment, and members are beginning to appreciate what kind of rendezvous we are having. david: joining us with the latest is kevin. a rendezvous with destiny. how would this be perceived by members in the room? reporter: i think it depends on the issue of whether or not they plansupport paul ryan's and endorse president trump on thursday.
mark meadows, who was also in the room and who president trump, according to sources in the room, singled out and said mark, we have got to get you on board. so i spoke with the aid representative meadows who said mark meadows is opposing this will as is jim jordan, other congressman, republican, prominent in the house freed caucus. they only need 21 votes to block this bill. there has been no account released, but this will come down to 20 12 factors. that is the only thing they can afford. it will be interesting. there have been a number of changes to appease republicans and bring them on board with the bill. hopefully it will be passed as paul ryan would say, tomorrow -- sorry, thursday. what tweaks are being made? kevin: they have sources working on them, and it comes down to two things, medicaid and tax-exempt is for seniors.
i medicaid, looking to appease the conservatives. they want to give more power to the states, but that has rattled a lot of democrats to say the least as well as moderate republicans. they were looking for more votes by giving power to help lower incomes, but also tax exemption for seniors. that will be a pitch to moderates. they can get moderates on board. several of the concerns, amongst republican governors, have said this bill would hurt seniors from getting the health care that they need. so this would incentivize the senate. this gets interesting. incentivize the senate to get them on board by allowing them to tack on amended data to make it easier for seniors to get tax inducted status on a host of health care related issues. these pitches again show the tight rope that both the seeker ryan and president trump are having to navigate in terms of
the republican party. ?avid: what about the semantics this warning of losing the midterm? is he flexing political muscle saying he would not campaign or them, or that constituents are counting on them? kevin: forces in the white house say this was a campaign promise that candidate trump delivered time and time again. the house republicans, even the majority of them, even when they were in the minority, were continuously trying to repeal the affordable care act. now they have a chance to do it. he is being opposed by top republicans in the tea party movement including senators rand paul, ted cruz and mike lee, who feel this bill does not go far engh. was all in inp his meeting on capitol hill with house republicans, accompanied not only by house speaker paul ryan but his top political lieutenant steve bannon,
kellyanne conway. they were all in the room trying to support him, get this across the finish line. david: the chief washington correspondent, and we will see more of him in the hour. he will dive into the debate with an wagner, a republican from misery. she supports. -- from missouri. trump'sminee for the -- nominee for the court is facing a test session. -- top session. he has railed against judges who have gone agaihigorsuch address. >> no one in the process from withime i was contacted expression of interest from potential interview to the time i was nominated, no one in the process, mr. chairman, asked a any commitments, promises on how i'm rule in any kind of case. david: and now we go to greg
storck, joining us from washington. great to have you with us. before we talk about the substance, if you could have the import of having him on the board, looking at what is on the topic -- the docket, what could this just is due to make a difference? -- justice due to make a difference? >> he would be replacing antonin scalia, keeping the balance of the court to what it was before scalia died. that was fairly conservative on things like class action litigation, a case involving whether union members could be force or workers could be forced to pay fees, collective bargaining union, and the court was poised to say no, you have a first amendment right not to do that. they could now go ahead with neil gorsuch and say, it could undermine unions. there is a lot of continuing litigation he could make a
difference on. david: democrats say this court has been sympathetic to corporations. he has ruled for the big guy and the little guy. when you look at his record, how does it say about his record with corporations inlved? gr he kept saying i have ruled in 2700 cases, andave not looked through all of those. it is a reasonable case to make many more often than not sides with corporations, but a lot of judges do that. the supreme court has been doing .hat in the past decade or so corporations generally do pretty well in court. at supreme court, there is a bit classivide on issues like action litigation, the rights of corporations to require employees to sign arbitration agreements for example. there is a lot of reasons that gorsuch could join his conservative people on cases like that. david: we heard he had been
asked about his politics, but we can look back at his record year you can see the criteria that the president outlined of listing his finalists before naming neil gorsuch. what does that tell us? process tells us this where the president came with that list of 21. he had heavy input from conservative groups, the federalist society, the heritage foundation. those groups really want to make sure you do not have another republican nominee who seems to fear to the left on the court. neil gorsuch did serve time in the george w. bush administration. that is one place where people got to know him as a conservative. his record all the appeals court has satisfied those groups that think long and hard about this, that he will be the justice that they like. david: what about senator dianne feinstein asking if he referred to roe v. wade as super offensive?
greg: he would not adopt that phrase, but it has been reaffirmed by the court multiple times. and he talked about you know, with all presidents and including rope, the reliance interest. it is a ruling that people come to depend on. states have allowed abortions to be legal. they have not tried to outlaw it in most cases. so he is not making any promises on that, but he is at least saying what he needs to say to sort of get past that hurdle of roe v. wade. david: and looking at the timetable going forward, i hadioned the ruling today more throughout this week, what will we hear from the chair? greg: he wants a committee vote by april 23, and that would be
enough time for them to have a vote at the end of the week on the senate floor. if that happens and he gets confirmed, he could be on the supreme court in term for the last round of argument in the last two weeks of april. ,avid: all right, thank you greg. you can watch the hearings for jeff gorsuch -- neil gorsuch online at bloomberg.com. let's mark: thank you. the u.k. will join the u.n. in banning laptops and other devices on certain flights. that is according to the bbc. the regulation is aimed at travelers coming to the country from 10 airports in the middle east and north africa. they will have to store electronic devices larger than a mobile phone in their checked baggage. the bbc says the u.k. ban may be somewhat different. president trump has signed into -- theexpiration exploration of mars as a nasa goal. it authorizes $19.5 billion in
space agency funding for the 2018 budget year. lookew law directs nasa to at human spaceflight programs to help humans explore mars and other destinations. the polls give emmanuel macron on the win after a televised presidential debate. he was attacked from both ends of the political spectrum on immigration, terrorism and the economy. polls show that far right candidate marine le pen lost ground. the world bank is lobbying for an increase in capital does right president trump's proposed cuts in foreign aid. the world bank president tells bloomberg that without a capital increase, the organization will have to step back from middle income countries. they have not raised capital since 2010. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. back to you.
♪ this is bloomberg markets, trump's first 100 days. let's get a check up where the market stand. julie hyman is here at the latest. julie: we have a selloff that made beat the street we have seen. it is 909 -- 109 sessions with the s&p not falling at least 1% as of the close of trading. if it had been 110, that would
be the longest since 1995, but at the moment it is down 1%. we will see if it sticks that way for the close. what is notable if we have not seen a selloff like this in u.s. stocks in quite some time. this year, the dow has the worst today, going back to mid-october. there seems to be a flipping of the switch when you look at the financials today. a lot of concerns about the so-called reflation trade as we are not seeing a steepening of the yield curve materialize. there has been a flattening. thatmargins, the difference betn the banks lending out and what they take in. we have seen that compress. that is financials dragging down, 2.5%, bank of america, wells fargo, all the regional banks. and the selling of widespread is not limited to financials,
industrials taking a hit as well as technology shares. i want to take a look at health care as we continue to track the progress or not -- lack thereof. looks like we have a glitch, but the health care index is down for four straight days, the worst since january 2. i want to look at the health care movers. santino molina healthcare, trading lower. will we live is an -- the revisions to the health care act are negative for hospitals and medicare managed care companies. that is not the final version of the bill, so analysts caution we could see more reaction. buyers, one important patents, the challenge drug teixeira, and those are down. david: julie hyman with the update. investors are expressing concern about the prospects of concern in congress.
to pass theailing act, that could jeopardize president trump's gold for a tax cut. for more we have the national political reporter covering tax and health care issues from capitol hill. you have two motivations when it comes to tax reform and health care. the result political reason for doing this, getting health care reform first, then the legislative one. let's start with the political rationale. help me with the thinking. if you cannot get health care through, you cannot get tax reform. reporter: that is what many republicans are saying. the theory here is it would be embarrassing for donald trump to have his first major initiative out of the gate rejected by members of his own party. it would be embarrassing for republican leaders in congress who have been reporting continuously for the last several years they would replace the affordable care act, to fail at the first opportunity with a president who would sign it.
would be an all-around political setback that would make everything else they try to do publication for the congressman. defeat this,can they will feel emboldened to take on republicans and fort anything else they don't like -- thwart everything else they don't like, from the number two republican in the senate. if they cannot do this, something so basic to campaign promises, what can they do? that is the reasoning. the legislative reasoning is more complicated, but the theory is that by doing health care first, you are repealing $883 billion in taxes over a decade. that means there is less to do on tax reform, less revenue raisers that people need to offset that spending. they are cutting it by medicaid by a substantial amount. david: you look at the way this was prioritized, republicans did
decide to push it first. the president show some dissatisfaction easy championing health ca to the before tax reform? hil: the president has been saying over the last few weeks he wished he could have done tax reform first. there is no technical reason he could not have done it first. republicans have brought that up for health care. but the republicans in congress have been saying years that this law on the books is such a disaster, they have been campaigning so consistently, it is hard to say, we will get rid later. that is kind of the thinking behind it. yesterday and more recently yesterday, including in louisville, kentucky, he talked essentially, it is up and he wants to get to. he described health care is something to be like a prerequisite for text care, trade. other things he wants to get to, he puts this item first. in a to get anything else, it is
like republicans say they have to get it done. david: you write about a potential fallback option, the marriage of these two legislations are what are they telling you about that? sahil: nobody wants to do this. andead of doing health care taxes separately, they combine them. these are massive, monumental initiatives. congress is bad at walking and chewing gum, two big things at once. the theory here would be if they fail on health care in this reconciliation package, they could theoretically combine it with taxes. that would make things more complicated and difficult. it would make it more difficult for a public and leaders to cobble a vote, because each one has winners and losers -- for republican leaders to cobble a vote, because each one has winners and losers. david: that is our national political reporter covering taxes and health care. we will tellou about a new flight restriction passed by the
♪ david: this is bloomberg markets, trump's first 100 days. the u.k. is joining the u.s. banning laptops and other devices from several middle eastern countries on planes amid concerns over conspiracy -- over security. we have a senior aviation analyst at bloomberg intelligence who joins us. let me put that question to you. you got people flying through these companies, what does it mean for them so far as we know? >> thanks, david. the majority of the u.s. carriers don't really have routes into the region anymore anyways. so we are immediately isolated to the big three carriers, and
ihad,de, every its -- eth emirates. will hurt business flights. it might have them through europe. it seems like maybe the administration and the u.k. administration are concerned about screening inside those countries. if you are routed through a european hub, you could use your laptop for that leg of the trip. david: how big is the security concern? how much concern is there in the industry about what one could do with a device like that? grge: i don't know that i even fully understand what exclusives could get packed into something -- explosives could get packed into the set of a laptop. you don't want to put people at risk, so the u.k. and u.s. think
it a high enough risk to shut this down. it is hard to tell. you don't want to expose people. david: how often are rules like this being changed? in other words, they will have to do things differently. how quickly can they do this? you must be a matter of days. apparatuseir must be set up quickly. we will oversee some of that as well, we have countries with people on the ground that will make sure it gets enacted correctly, but they are flexible. they will get it done right. david: is the standard for american carriers? you mentioned they do not fly through their much. will they received preferential from other travelers? george: it is hard to see for the u.s. carriers, but the europeans might have a pickup from this. you could come up through frankfurt or heathrow or degaulle, and you could take a flight from there back into the
states. mti flight out of the middle east, someplace in asia. that will be the bigger challenge for the middle east carriers. they have gotten into this business of trying to hub people from asia into the u.s., asia and europe with one-stop through dubai. this will make you want to go through the european major hubs, keep their laptops and travel on again to asia from the americas or vice versa. it could be a pickup for them. david: all rit, ghe is the senin analyst at bloomberg. we llr negop lawmakers with the republican health care bill. this is bloomberg. ♪
a focus on politics and policy under the new administration. let's start with the headlines. mark: president trump had a warning for house republicans, discussing the gop's affordable care act replacement. the warning came in day after gop leaders made changes to the measure. they include an accelerated phaseout of subsidies and taxes. the houseboats thursday on that bill. for thet trump's pick open supreme court seat facing a marathon of questioning. neil gorsuch being questioned by democrats and republicans. roe v. wadeout setting a precedent and democrats on the committee also
said they would hold him to a higher standard, still angered that judgment or garland -- merrick garland was not given a hearing. waiting -- will keep eu leaders insisted they will begin talks on brexit but canceled plans to hold a summit outlines6 to way the best that will eat into the u.k.'s two-year bargaining period. an organization adds research showing that 10% of people with 401(k) retirement plans have at least $200,000 stashed away. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries.
-- i'm mark crumpton. david: the white house daily press briefing is getting underway. we will monitor that for headlines. thehree clock p.m., president will host a legislative affairs group meeting in the roosevelt room at the white house. he will make, remarkat the march dneat the national building museum in washington. one republican accomplishments bestng the charge to get congressman david brat of virginia. rep. brat: we want trump to be successful, but every good businessman knows the most essential aspect is price. prices are going up 25%. we have to bend the cost curve down. a lot of people out there are saying but for this thing and you can solve that later and you cannot. the insurance regulations have to be in the bill.
they cannot come later. the secretary can work on them. if he works on them, they don't become law. they would change every four years when you get a new secretary. you will be playing bumper cars with 1/6 of the u.s. economy. we will get the price curve down, then we are all on board. that is the major piece we have to get right before we vote on this bill. david: right now, it doesn't have your support. rep. brat: until we get the insurance rags in the bill -- insurance regs in the bill. you have to buy these minimum mandated policies from the u.s. government -- no one wants to be buying health insurance from the u.s. government. we want to have a free market fromealth insurance hospitals. we don't have free market.
we have to return some sanity to the markets and take care of those with pre-existing conditions and so on. that is not hard to do. what milton friedman said 50 years ago, hit the target. there is a policy target therefore folks, 5% of the people are over 50% of health-care costs. they cannot get insurance. that is a market failure. let's keep the rest of the markets fluid. if you don't have fluid markets, you are not going to get economic growth and the health care sector will continue to hamper our economy. david: what did you hear from the president -- what did the president say? rep. brat: he put on the big sales pitch. he is getting counsel that he thinks we can do the insurance regs through the secretary. you can, but they are not permanent. we cannot go through this every
poor years when we have a once in a century opportunity with the house, the senate and the president. we have to get this into law a right now. we need that one change. he knows that. i think we will get to yes and then we will have a big party. david: he was talking about retribution this morning. what are you another members of the freedom caucus saying to your colleagues about retribution if they go the other way? rep. brat: he was just saying there will be tough votes out there. if you're on the conservative side, the phone calls coming into my office are 80% no's for the current bill. they don't think we are really repealing obamacare. we had 50 votes to repeal obamacare and both the right and left wing think tanks agreed the essential architecture and structure of obamacare remains in place in our current bill. if that is the case if we will ,ave federally run health care
the one absolutely critical piece is the essential health care benefits. we have to get markets so the s push from 25 down to negative one. we will get there. i feel good about it. he knows price, product, quality, service, reputation. that is what matters to him and we will get him the product that will sell with the american people and he will be better off court. -- better off for it. david: look at who is stepping the white house right now and there's a lot of alumni from goldman sachs best how concerned about that divide between populist and more mainstream economics? rep. brat: i am a populist. trump is very good at saying i
will take care of the people. the best proven method to take care of people is to use the free market system. that is consistent with his wanting to take a war out on the bureaucratic swamp appeared. -- up here. all the construction work is an washington, d.c. we need to return the power from the cronies appear back down -- he ran last year as an outsider against this cronyism and insider dealing and all the money up here, we have to return some of that back to the people. it is hard. we don't want to put 1/6 of the economy up here in washington's hands again. that would be the wrong way to move on the populism that will make people back home better off. david: thank you very much. david bratniment mark
of virginia. we also have congresswoman ann wagner. caught up with the congresswoman to discuss the consumer. financial protection bureau. he began by asking her how she wants to reshape the cfp be cfpb. the rep. wagner: n only the accountability but also its unconstitutionality. we had several expert witnesses there today to talk about the fact that there are no checks , nobalances on the cfpb checks and balances when it comes to congress, the power of the purse, not to the executive branch and not to the judiciary. we discussed those issues and also talked about how the bureau
needs to be structured going forward. kevin: what is the timeline on financial reshaping? will it be this year, this congress? rep. wagner: we have something in the choice act, but that will happen -- a restructuring, a importance ofthe the work of the cfpb when we get a new director. cfpb director can serve as the will of the president. besthould be able to be a -- i think we are laying out the foundation for cause for the cfpb director to go. kevin: you are saying he should be fired? rep. wagner: absolutely. you look at the lavish spending, the issues of discrimination
that were rampant, the overreach and the unaccountability and the list goes on and on of failed leadership and some of that is in the record now. also, the general unconstitutionality and unaccountability of the cfpb as it stands as a structure. kevin:presint trump and other house republicans in a meeting to discuss health care -- that vote expected on thursday. you can only afford to lose 21 votes. do you have the votes? rep. wagner: i believe we do. kevin: when the house freedom caucus chairman is saying you don't have the votes come is he wrong? rep. wagner: i believe we have the votes and i believe there president was the closer today.
.o more time for excuses we have to keepe to do not onlys politically correct in terms of repeal and replace them of what to do what is best and what is right by the people. they deserve patient centered and affordable health care. obamacare is in a death spiral. it is important that we do this work to make sure that we have health care that is affordable and accessible for others. kevin: who are you focusing on? there were changes made to the legislation just the other night that seemingly were trying to appease moderates and some other changes to appease more conservative members. who are the key players here? rep. wagner: we're listening to all members. this has been a very open process. it has worked its way through budget and all committees. it will come down to the votes at the end of the day.
i think the president leading in on this and owning this bill. kevin: you agree with him that if the bill passes, it will increase the majority for 2018? rep. wagner: i'm not worrying about our majority -- what i'm worrying about is that we do right by the american people. pass this legislation and move it to the senate for them to also vote on it. we are the leaders. we have worked on this reform with the senate and with the trump administration and this is a full united republican government plan going forward. someoping we will pick up democrat votes, especially on the standalone pieces. kevin: some antitrust -- rep. wagner: antitrust things, things dealing with court reform
and medical malpractice. there was one policy change in particular that i know a lot of folks are curious about. about medicaid and changes to medicaid, 70 million people infected by that. folks that --ow more leeway to state leaders. are you concerned when the cbo says porton million folks will lose health insurance within the first year -- 14 million folks will lose health insurance within the first year? what is your response? rep. wagner: able-bodied americans ought to receive theid supplements. i think that is fair and just and most americans would agree that able-bodied americans ought
ifhave work requirement they're going to receive free health care through the medicaid system. right now and that there are 19.2 million americans that are not in obamacare because they are either paying the penalties or they have found an exemption to get out. i find the numbers to be a -- insignificant when we are taking a look at the 1400ackage and rules and regulations that secretary price will be able to affect and overturn. congressman ann wagner earlier today. neil gorsuch's confirmation is going on. you can watch that on bloomberg.com. this is bloomberg. ♪
david: this is "bloomberg markets." let's get a check of where the market stand this ternoon. julie: i'm focusing on consumer stocks. general mills out with earnings this morning, the company will beef up its marketing and promotions in particular at its u.s. yogurt unit. the third 20% in quarter, revenue for the full year will be down 4%. are investing in future millss -- general downgraded over at bernstein.
downgraded to underperform from market perform. recent trends weighing on these stocks. we've also been watching auto related stocks today. ally financial coming out and saying prop could rise as little as 5% this year because of a decline in used car prices. we are seeing a ripple effect among car companies -- hertz global and avis budgetone stockn consumers. chipotle rising on a note out of m science -- they base this on proprietary survey data. shares up 2%. david: thank you very much. there is no shortage of fed
speak this week. today, bill dudley, esther george and loretto mester -- we will get janet yellen on thursday. us.na shulyatyeva jos weave kari giving us explicitly rationale for why he voted the way he did -- what are you listening for from the others? yelena: i don't think we will get that much color from janet yellen this week. she is the most important, obviously. that theundantly clear outlook has not changed. they still expect moderate growth, inflation to move closer to their target.
they will move accommodation gradually. really great to hear from different sides of the aisle. neel's interview was great yesterday. one of the most important things we should take from that is that that is trying to make it clear what they want to do with the balance sheet before we even get to that. david: charles evans speaking three times this week. he's giving some indication of how many hikes he things we could see. yelena: that is a difficult one to read. is a 2, 3 or four? that is a possibility, in his view. what he really needs to see is inflation to move closer to the target. during the speech yesterday, he spoke at the national
association for business economics in new york and made it crystal clear that he wants to see inflation to move closer to the target. he doesn't see that happening yet. he is still one of the most dovish fomc participants. astly, about the balance sheet come is it your sense that we will hear more about reducing the balance sheet? yelena: they are eager to reduce it eventually. they want to prepare the markets and analysts for that to happen. we will hear more about it. george mentioned today that we will he a lot about it in the coming months and quarters. it doesn't mean we will start doing it right away. they really want to pair the markets like they did with the rate hikes. they did it just great so it
david: this is "bloomberg markets." on our radar for tomorrow and the rest of the week, day three of confirmation hearings for neil gorsuch. paul ryan is pushing for a vote on a bill to replace obamacare as soon as thursday. the president's pic will have his confirmation hearing on thursday. commence joins us again from capitol hill. i was so struck by the contrast between the two republicans we talked to today. one thing this is a done deal, the other saying not so fast. what is the job like over the
next 24-36 hours? heard that about just how divided this republican caucus is right now. supporters of president trump 's plan tell me 21 is the magic number. they will be able to move this health care bill through the house and onto the senate. david: huge quantity of hearings this week -- jay clayton on thursday. are you inspecting a lot of fireworks around and not one? kevin: elizabeth warren will testify before them, sure to bring some questions. pick.s an establishment also someone who worked in the bush administration. this is a safe pick in terms of moderates, but incredibly tough
for democrats to block any pick. david: that hearing for judge day three tomorrow. at can we expect for the rest of the week? kevin: democrats continuing to define judge gorsuch as someone in line with special interests. folks i'm chatting with in the halls of congress and outside groups in terms of republican circles telling me that today was a great day for judge gorsuch. they don't anticipate any major hiccups or fireworks in the days ahead. david: check out all of our programming on the bloomberg at tv . this is bloomberg. ♪
this is "bloomberg markets." scarlet: we are live from bloomberg world headquarters in new york over the next hour, covering stories out of las vegas, washington and paris. we are live at the ibm interconnect conference in las vegas throughout the hour, speaking with ibm's ceo and salesforce.com's ceo. release results after the close today. leon cooperman must face a trial on insider trading charges after a judge ruled that the fcc had a plausible case against them. but first, we want to return to equity markets where stocks are seeing the biggest selloff in. -- in