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tv   Bloomberg Markets The Trump Economy  Bloomberg  May 16, 2017 1:00pm-2:01pm EDT

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vonnie: you are looking at a live shot of the roosevelt room where president trump and erdogant ever gone -- are expected to give joint statement very shortly. for we take you live to the joint statement by president trump and turkish president erdogan, let's get some inside -- insight on what they will talk about anhow it will play on the world stage. we are joned by kin cirilli and edward george and -- edward, the director of public policy at rice university. he joins us from houston, texas. let me begin with you and ask you what the turkish president's message he today whether it is to the turkish president or those watching turkey closely. >> i think the fundamental message president erdogan --
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erdogan would like to convey is the euro should -- u.s.-turkish relationship is being maintained and fostered. major, as you know, is a nato ally. it has the second-largest military component in nato after the united states. it is geopolitically in such a central place between europe and the middle east and this relationship is a key relationship and it is in the interest of any leader of turkey to maintain that relationship with the united states. in a broad geopolitical context, this is a very important meeting for both sides because the u.s. has interest, turkey has interests to the most essential interests -- issues they will be addressing is syria, and there
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are some conflict of -- conflicting objectives in which we can going to more deta than heo be resolved -- need to be resolved, the issue of the turkish leader who is in exile in the united states who lives in the united states and the turkish-russian-iranian relationship that has been growing. there is a lot on the agenda. vonnie: we will think about the agenda in a moment. kevin cirilli, we just heard the u.s. president say it is going to be a long and hard discussion with turkey's president. he was speaking to reporters at the white house and said it was a great honor to host. it is coming at a strange time on the heels of this report that dis president die bulged --
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ivulged highly classified information to russia. kevin: earlier i spoke with senate majority leader mitch mcconnell who argued that he hopes there be "a little less drama coming from the white house." i can tell you the republican members on capitol hill are growing increasingly frustrated about the fallout and the handling of the firing of former fbi director james comey, not just the washington post report which the white house is refuting, but raises questions about how this administration is handling classified information because this perfect storm of political controversy puts at abilitysident trump's to get -- to do things on his to do list. something controversial like the
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border adjustment tax -- take a listen to what senator mcconnell had to say. senator mcconnell: it probably would not pass the senate. the way we are trying to go forward is the secretary of the treasury, the speaker, and myself are trying to reach an agreement on a proposal that we and -- we can all agree to start with. haven't reached that agreement yet, but we will at some point. kevin: there you have it with the controversial issue of the border adjustment tax probably not going to be included in the tax reform. there you have it. senator mcconnell working with for policy.s it is hard to do that when so much of the narrative and the story out of the white house is defending itself and its relationship with russia. vonnie: ambassador djerejian director of the rice institute -- acre institute at rice
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university. what will be the outcome of the meeting? will it just to be a friendly get-together or will there be anything actually accomplished by today's meeting between erdogan and president trump? ambassador djerejian: it will be difficult for the leaders to resolve the specific issues that are really issues dividing the two countries. kurds inissue of the activend erdogan's very operations against the d.k.k. and the y.p.j. that he has branded as terrorist organizations. states is supporting .j., which is somehow affiliated, but is really the
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most effective military fighting force within the syrian fense forces. the groups that the united states and others are supporting in syria, they are the ones who have been the most effective militarily in the field and especially at this critical moment when all the forces are aimed at the so-called capital of isis. vonnie: i suppose the question is will the u.s. president in any way be able to convince the turkish president to change tactics, change strategy, maybe kurds some of what the are doing, given that he rbc doesn't support what the kurds -- what the kurds are doing in his own country. ambassador djerejian: i think the compromise can be that the united states puts its position forward and saying we are doing this tactically because this is the most effective way to get rid of isis, but it is a tactical move, but in no way
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does the united states support kurdishk. or aspirations for independent or autonomy in syria or certainly in turkey. think, diplomatically, there is a way of coming to some compromise on this. it will take artful diplomacy -- vonnie: we are going now to the president of the united states. president trump: it is a great pleasure to welcome president erdogan for his first visit to the white house in years. the american and turkish peoples have been friends and allies for many, many decades. turkey was a pillar in the cold war against communism, it was a bastion against soviet expansion, and turkish kurdish -- courage in war is legendary.
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that is so true. fought bravely alongside american soldiers in e korean war and we have not forgotten what they did. in se ways, when we looked at their bravery in the fight in korea, it was just something that our soldiers and our great generals still remember. supreme commander general douglas macarthur singled out and praised the exemplary valor of the turkish soldier, said some of the great soldiers of the world. today we face a new enemy in the fight against terrorism and we seek to fight this -- face this fight together. the turkish people faced horrible terrorist attacks in recent years and even recently.
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we offer our compassion to the victims and we offer our support to the turkish nation. we support turkey in the first fight against terror and terror groups like isis and the pkk and ensure they have no safe order -- order -- quarter. we appreciate turkey's leadership seeking and end to the terror in syria. all you have to do is look at the front page of the papers today and you will see exactly what we are talking about. we also support any effort that can be used to reduce the violence in syria and create the conditions for a peaceful resolution. president erdogan and i are discussing the need to reinvigorate our trade and commercial ties.
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these are areas we can build our relationship that will benefit both of our countries. military equipment was ordered by turkey in the president and we have made sure it gets there quickly. i look forward to working together with president erdogan on securing peace in the middle east and confronting the shared threats and working toward a future of dignity and safety for all of our people. , thank you for per -- visiting our country and joining us today at the white house. it is a great honor to have you with us. thank you. president erdogan: mr. president, my dear friend, distinguished numbers of the press, i would like to salute
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you all. i would like to take this opportunity to thank president and his team for the generous hospitality they have shown us , to my personal self and my -- the entire members of my delegation. thank you, mr. president. g turkish] tosident trump: i would like congratulate president trump -- president erdogan: i would like to congratulate president trump. we have had bilateral discussions with president trump .
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we have had the opportunity to focus on the outstanding relations between turkey and the united states that date back a weg time in hiory, which have quite happily reached a level of strategic partnership. [speaking turkish] the relations between turkey and the united states have been erected upon common values and interests. [speaking curt -- turkish] outstanding relations stronger than ever will be very important for our common interest and for our stability of the globe and peace around the world. [speaking turkish]
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the close corporation the countries demonstrate, especially in the region currently in turmoil, will be important for the rest of the world. [speaking turkish] primarily, alongside each other as turkey and the united states under the roof of the united nations, nato, and the g-20. [speaking turkish] we have been enjoying a close cooperation in all of these platforms around the world and in the future, we are going to spoke -- focus on making sure we expend our close -- expand our cooperation and build on the knowledge we enjoyed. [speaking turkish] we are determined to expand our relations and i believe it will
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mark a historic turn of tide. [speaking turkish] whether it be throughout bilateral discussions or the descussions between the gations, i think we will enjoy further gains in terms of the future of our relations. speaking tursh] expanding agree on our relations in the field of economy, trade, reciprocal investments, energy, and defense industry. [speaking turkish] it is going to be very important for us to forge a close solidarity and cooperation in
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the field of fighting terrorism, with all the terrorist organizations in the region. [speaking turkish] we are committed to fighting all forms of terrorism without any discrimination that impose a clear threat upon our future. [speaking turkish] there is no place for the terrorist organizations in the future of our region. [speaking turkish] ypj and pkk into -- they are against the global agreement we have reached. [speaking turkish]
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we should never allow those groups to manipulate the religious structure and the ethnic structure of the region, making terrorism a pretext or an excuse. [speaking turkish] those who are willing to turn to chaos are bound to lose eventually. [speaking turkish] they will never be able to turn that chaos in that part of the world into opportunity and terrorist opportunities with blood in their hands are bound to fail. [speaking turkish] so, iave previously done
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have been communicating our thectations with regard to terrorist organizations which we have notified our friends of their involvement in the failed coup in turkey. [speaking turkish] considerationinto the joint steps we can take forward in syria and iraq. [speaking turkish] of course, president trump's recent election victory led to the awakening of a new set of aspirations and expectations and hopes in our region. [speaking turkish] we know that by the help of the you -- new u.s. administration, these hopes will not be lost in vain. [speaking turkish]
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the mosthat it was necessary answer to be given to the syrian regime, especially in the aftermath of the recent chemical attacks that took place. [speaking turkish] of keepingt in terms up with the principal and committed fight against terrorist organizations all around the world, we would not repeat the mistakes of the past and we will continue down this path together. [speaking turkish] in the restoration and establishment of stability in the region in question, the alliance and the partnership and cooperation between the united states and turkey is of vital importance. [speaking turkish]
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i hope and pray that both of us will be committed to expanding -- further our cooperation in the future and consulting each other more frequently. [speaking turkish] we are laying the foundation of a new era between the two countries in terms of our relations. i hope and pray this new administration will bring forth auspicious results. [speaking turkish] i would like to thank president trump for his very kind and cordial invitation and i am looking forward to hosting him in turkey along with his entire family. president trump: thank you all very much, appreciate it. we are going to go to ratings now. -- readings now.
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we had a very, very successful meeting with the foreign minister of russia. our fight is against isis as a general mcmaster said, i know he and he feels we had a great meeting with the foreign minister. we will have a lot of great success over the coming years and we want to get as many to help fight terrorism as possible and that is one of the beautiful things happening with turkey. the relationship we have .ogether will be unbeatable thank you all very much. i appreciate it. we are going to a meeting. vonnie: you heard it there, president trump and turkish erdogan giving joint statement at the white house and at the end the white house -- the president did address the classified -- highly
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classified information spoken of in the room with russia's foreign minister last week. he said it was a successful as an umbrella, said our fight is against isis and he said he knows h.r. mcmaster feels the meeting with a -- was a great success and rolled turkey into the equation saying that relationship would also be a great success. to get back to the joint statement, let me turn back to kevin cirilli and edward djerejian, the former u.s. ambassador to syria and israel, currently the director of public policy at rice university baker institute. president erdogan talked about the legendary triumph that awaited president trump following the election and talked about outstanding relations between countries that date back a long time. he did mention some of those points of contention, albeit
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phrasing it in a way that it would be a mutual fight against isis. where will the cooperation come from? thinkador djerejian: i first both president erdogan and president trump achieved what they wanted to achieve to reassert the importance of the u.s.-turkish relationship and erdogan mentioned a new way forward. it was apparent they were well together. these are all major political considerations on both sides. everyone mentioned -- erdogan mentioned to the bilateral -- he mentioned trade, energy, access -- etc. i was taken by the amount of onus and time erdogan spent the issue of terrorism. that obviously was the primary issue of discussion between the indicatedents and he
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that this is the common challenge. a president trump indicated that also in his remarks and erdogan went into quite a bit of detail on that and while he did not specifically mention the areas of disagreement such as on the syrian-kurdish role, obviously that was a major discussion they had to have and they will continue to have. of course, they didn't bring that out in any detail. vonnie: kevin cirilli, let me turn to you and ask you what would be a win for president trump out of today's meeting given that he is headed off to saudi arabia and other countries later in the week. kevin: i think it puts behind him the questions that are dogging his administration. we heard the president say he
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wants to work with as many countries as possible to defeat isis when reporters were asking whether or not he revealed highly classified intelligence to russian diplomat last week at the white house through the issue is not whether or not president trump wants to work with people to defeat terrorists , it is how he handled classified information. it is also why he decided to fire fbi director james comey the way he did. these are questions that are ongoing. the final word from the briefing of the general h.r. mcmaster earlier this afternoon was the president was unaware if he was being briefed on highly classified information. when i spoke with senate majority leader earlier today, there is a frustration that is insidee that the chaos 16 hundred pennsylvania avenue is severely starting to limit its ability to get across legislative priorities. canie: ambassador djerejian
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i ask you about the focus on trade ties? the u.s. president making it clear turkey had ordered military equipment. what was the message here? withis the quid pro quo turkey working with the u.s. in some way or changing it position to achieve -- its position to achieve middle east peace? ambassador djerejian: i think the military relationship has been long-standing. remember, we have one of our major bases in the region, our airbase plays a critical role in u.s. deployments in the middle east. there is nothing unusual about the military relationship being continued and perhaps enhanced by new military deliveries. that i think is par for the course. vonnie: let me ask you very
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briefly what the u.s. president has to bargain with. what can he offer the turkish president that might get accepted by the turkish president? ambassador djerejian: as i said, i think we need to conduct some very serious and professional diplomacy in resolving this issue in syria. the difference is we have with our sut for the ypg and the syrian defense forces in turkey's anxieties about that because they think the ypg is part of a terrorist organization. these are real issues i am sure will be discussed in the conversations. vonnie: ambassador djerejian thank you and kevin cirilli outside the white house. this is bloomberg ♪
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vonnie: this is "bloomberg markets." i'm vonnie quinn. we just heard the west president
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-- u.s. president and turkish president. they spoke on how the two countries would fight terrorism together. another issue plaguing president trump is the washington post report that he revealed highly classified islamic state terror plots. he said in a tweet today -- for more, i want to bring in eli lake. shanker from our gc bureau and at the white house is kevin cirilli. marty, let me begin with you. that series of tweets we got this morning in which the president called for the leakers to be unmasked, he just said at
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a press conference that the meeting was great, that he got along well with the russian foreign minister and "our fight is against isis." is he taking this seriously? certainly the surrogates around him are taking it seriously. andral mcmaster came out try to explain what he meant by the washington post story being false. he did not directly address the fact that they disputed accounts that weren't in the story. this controversy is not going away, even if donald trump is in terms of going to europe. vonnie: he's also headed to saudi arabia and the middle east. have we learned anymore about how the leak might have emanated? kevin: we have not. there was an interesting point generalhe comments that mcmaster said publicly behind the podium in which he said he
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believes the leaks and other leaks like it put national security interests at risk. the question does not become whether or not president trump is acting illegally. virtually every legal scholar with say that he did not break any laws. the question becomes whether or not he mishandled highly classified intelligence information. it also becomes just to inside of that room is leaking information and what type of the shovel meant just this shovel exists- dishevelement in that room. this is a republican party that campaigned across the board on lowering premiums for health care, copperheads of tax reform promising -- comprehensive tax reform. they haven't been able to do it. vonnie: we were just looking at the working luncheon.
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we saw some video including jared kushner in the room as well. lake, you have a great call n outout today -- colum today. is this comparable to classified information that has been leaked at other times? is this more or less serious because this is the president who can presumably give classified information away at any point and it automatically becomes declassified? >> we have to step back a bit -- mcmaster today was much stronger in his push back against washington post story.
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+++ inappropriate was shared in that meeting. it is not unusual for a president to share with senior russian officials threat information about isis. there's been a cooperation with the russians since 9/11. significant intelligence sharing was envisioned by john in syria when he was negotiating with sergey lavrov and august -- in august. ia breach was significant enough that the intelligence community was briefed about it. the information that was shared was enough that the russians could perhaps reverse engineer and learn those sources and methods. it has not been addressed by the white house and has not been refuted by the white house. we need to learn a bit more because we are in a murky area. the key issue here is not that it showed the corruption of president trump, that he owed the russians a favor and this was his way of paying them off or something that, it is rather the fact that he is impulsive and improvisational.
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when you are talking about high-stakes diplomacy like this, you stick to a script and plan out exactly what you are going to share. if it's true that he went out that script and started boasting about the level of intelligence he received, that is a problem. vonnie: the exact words that weremcmaster used today "it was wholly appropriate to that conversation." is there any chance that the president got something in return, whether it was intelligence or something else, palatable? make it palpabl marty: i guess anything is possible. that goes to the direction of the conspiracy theory between the russians and donald trump. it's much more plausible that he was being boastful and expansive and friendly and trying to get
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the russians to help them on syria. he die post-up port and information -- divulged important information. he doesn't necessarily read the briefing papers on what is classified and what is not. it's not. vulgednows that he di specified information. vonnie: do we get any finality to this? director first, i guess. will something conclusive come waiting forwe just the white house to tell us something that we will never hear? >> i don't know. the president has the authority to declassify what he wants. it is not like he committed a crime. let's wait and find out. we still don't know for sure who the l.a. partner is that i like
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partner is. -- who the allied partners. -- who the allied partner is. vonnie: israel was the source of the intelligence that the president shared with the russians. the new york times is reporting that israel was the source of the intelligence that donald trump shared with the russians. how does this change the conversation? best -- it has a source inside isis. there's a close relationship between netanyahu and the president and the israeli ambassador. that is an advantage. they can work this out because there's a level of trust there that wasn't there with obama. oftentimes, the obama administration complained that it was the israelis who weren't -- they were worried about the israelis learning things they
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shouldn't have learned from the u.s. interesting how this works out. vonnie: any idea why the israelis might be getting information? do they know that it might be passed on? was there some sort of back channel deal going on here? >>'s been intelligence sharing between united states and israel for decades. vonnie: but not israel and russia, presumably. >> the russians and israelis do have rather normal relationships. that is not a hostile relationship. netanyahu has been to moscow a couple of times. i do think eli is quite right that because it is israel and because of trump's steadfast support for israel, they can probably make this problem mitigated, if not eliminated. he is going to israel next week. i'm sure that will be a topic of conversation. vonnie: we have to leave it
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there come unfortunately. on a cliffhanger, as usual these days. -- we have to leave it there com, unfortunately. thank you. it's time to get a check on the headlines with the first word news. mark: president trump's national security adviser says information the president shared with the russians was "wholly appropriate and based on open-source reporting." general h.r. mcmaster told reporters the president's revelation in no way compromised intelligence sources and methods. >> i was in the room, the secretary of state was in the room. the deputy advisor for national security was in the room. none of us felt in any way that that conversation was an appropriate. mark: the president tweeted
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today that he had the authority to share "facts pertaining to terrorism." mike pompeo will brief members of the house intelligence committee later tonight. the session was reportedly scheduled before that washington post story that president trump shared highly classified information with russian officials last week. in south korea, the government says the new president will visit the white house next month . there's growing concern about north korea's progress in developing nuclear weapons and long-range missiles. he favors a softer approach to kim jong-un's regime, but the u.s. is south korea's closest military ally and the trump administration is taking a harder line. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. vonnie: thank you. coming up, mitch mcconnell says
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the border adjustment taxable probably not pass the senate. -- senate majority leader mitch mcconnell says the border adjustment tax will probably not pass the senate. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." let's get a check on where markets stand with julie hyman. julie: really a lack of movement on wall street. a tight trading range and not a lot of percentage movement, either. the nasdaq trading at a record
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the s&p touched one before pulling back earlier. traders are watching the events in washington unfold. they are not making big trading moves based upon them. there's been a theme emerging recently that investors who we speak to happen preferring outside of the u.s. investments to the u.s. if you take a look at the chart of the stoxx 600 in europe and how it's been performing versus the s&p 500 since the election mother stoxx 600 is in white -- since the election, the stock 600 is in white. if you take your dollars and you , that is theere outcome. we've been following twitter. this will happen in a couple of
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weeks. jack dorsey tweeting that he's excited to be back there. stone says "my top focus will be to guide the company culture, that energy, that feeling." he says he's not replacing anyone currently at the company. egna goes down by 7%. -- it was 41% in 2016. they are planning to spin off we are seeing those shares take a hit. vonnie: thank you for that. senate majority leader mitch mcconnell says any tax or all cannot that's overhaul cannot add to the deficit. he spoke to bloomberg television
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on this position. sen. mcconnell: we will have to be revenue neutral. we have a $23 trillion debt. we added an enormous amount of debt during the obama years. we will have to be revenue neutral. the last time tax reform was done, it took several years. we certainly want to try to complete it this congress and make america more competitive. we didn't have one year of 3% growth during all of obama. kevin: one of the most controversial issues of tax reform has been the border adjustment tax. a lot of senators seem against it. probablynnell: it's not going to pass the senate. secretary of the treasury and the speaker and myself are trying to reach an agreement on a proposal we can all agree to start with. we will start with a house.
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-- the house. we will at some point. border adjustability is a pretty controversial thing in the senate. we will see what is in the final plan we agree to. vonnie: that was senate majority leader mitch mcconnell earlier today on bloomberg television. for more, let's bring in sahil kapur. we want to get to what the senate majority leader said. first-come i want to know if you have any response to this report out of the new york times that it was israel that shared this information. any reaction on capitol hill yet? sahil: i just saw the alert moments ago. it is obviously something that will provoke a reaction on capitol hill from republicans and democrats. israel is a close trusted ally for the united states. republicans in particular really
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eager to guard that relationship. questions continue to swirl about the extent of information that president trump had disclosed to the russian officials in the oval office. vonnie: i will hit you with another thing -- ap reporting toldsenator john cornyn the trump edmund attrition that he would stay in the senate. -- trump administration that he went stay in the senate. -- that he would stay in the senate. cornyn'snator statement comes after senator mcconnell had suggested that the fbi needs an independent, a political figure to run it at this point. someone like cornyn who led the senate republican's campaign
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committee would face a lot of backlash. senator cornyn had not ruled out the position initially. he's the number two position but he is term limited out. after 2018, he can no longer hold the number two job. senator mcconnell is showing no signs of going anywhere. that's where senator cornyn is now. this comes after some of his own colleagues like senator lindsey graham has adjusted that now is not the time for a political figure like him. vonnie: mayor garland has no interest in the fbi job. -- merrick garland. is on a foreign trip this week.
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at what point does come begin to consider the legislation period? sahil: the senate will be wrapped up with health care for the foreseeable future. mcconnell earlier this morning told kevin cirilli that he's not putting a timeline on it. he just said we cannot take forever. majorospect for legislation in congress is taking a beating day after day. you need time and space and a sickness of the in messaging to push any of these things forward -- synchronicity in messaging. this is an helped by the fbi firing and this disclosure to russian officials. -- this is not helped. vonnie: thank you.
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we will have more of this on bloomberg. ♪
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vonnie: this is "bloomberg markets." continuing with today's major story, the most recent news is that the new york times is reporting israel is the source of intel shared with the russians. this comes on the heels of the washington post story that president trump revealed "highly classified information." for more, i want to bring in alan leavenworth. the reason we are talking to you is because part of this story is -- hovering over every airport traveler in the world. europe was the latest to say they were going to potentially
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issue a laptop ban on flights. at a briefing today, this right expand even further. >> that is correct. the department of home and security -- homeland security in a briefing a few moments ago said they were looking at expanding it to airports beyond europe. they weren't very specific. they have not made up their mind. as we've seen, they've moved very slowly here. it's not clear that anything is imminent. vonnie: how would it work? if any leg of your journey is u.s. related, you couldn't have a laptop? if you are traveling anywhere that doesn't have a touchdown in u.s., you can? alan: that is a very good question. you can imagine, you fly berlin
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are allowed a laptop on that leg and then you have to stow it on the next leg the airlines are scrambling right now to try to work through it. vonnie: presumably, you couldn't even stow it. any reason why this might be expanded? did something else happen overnight that we haven't heard about yet? >> as far as we know, no. they have said that there's no imminent threat -- they don't have the intelligence indicating there's a plot underway at the moment. they have strong intelligence indicating this is a potential problem. vonnie: europe is not happy about this. who has stressed diction here?
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-- jurisdiction here? alan: the united states can set any standard for flights leaving europe to the u.s. obviously, there are airport officials and government entities throughout europe -- the european commission is involved. they are all trying to consult and get on the same page. ultimately, they would like to be consistent. vonnie: alan levin, thank you. coming up on "bloomberg markets congressman eliot engel of new york. this is bloomberg. ♪
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scarlet: it is 2:00 p.m. in new york and 7:00 p.m. in london. >> welcome to "bloomberg markets ."
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scarlet: we are live from bloomberg world headquarters in new york over the next hour. we begin wit politics. president trump says it is his absolute right to disclose intelligence to russia. alan patricosenate majority leah mcconnell says he is fed up with the drama from the white house. the vix is flirting with its lowest level in decades. why are investors still trying to protect themselves from an increase in volatility? in corporate news, ford is set to be cutting 10% of its global workforce. mark fields under pressure to boost profit and get the stock back on track. in two hours.lose let's get a check on how things are paring with julie


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