tv Bloomberg Markets The Trump Economy Bloomberg June 29, 2017 1:00pm-2:01pm EDT
care, bob corker says he expects gop leaders to scrap the division in the bill that would affect wealthier americans. meets in themp white house. the u.s. is expected to press south korea on trade imbalances like cars and steal. yesterday, he sat with the head of the democratic national committee and today, we hear from his republican counterpart. anna: let's talk about health care still dominating headlines. gop members have an closed-door talks on possible changes as they race to have a deal by tomorrow.
and and insurers fund that republicans once criticized as a bailout. that's according to republican senator bob corker. what is most significant? >> internet to be heavy lift they want to protect , andxisting regulation someone to go further in cutting regulations. justke with leaders moments ago. david: help us understand the
timetable here. a fourth of july recess. middle is to get this by the time the lawmakers get back? >> the goal is to get them but before the fourth of july recess and to vote when they come back. deadlines pile up. they come back after the july for recess, they are absolutely crucial. i caught up with congressman brady, republican in chair on the house and ways -- of ways and means committee.
he expressed confidence around the timeframe you described. senate confident the will deliver on health care reform. this is as. they are positive. anna: he is confident they can do this and it won't hold up. but from an investor's perspective, that is the big question, isn't it? >> brady is an optimist and he has been throughout. what senator cruz is proposing to his colleagues is an interesting one. it would get the conservatives on board that are currently holding out. those complying with obamacare regulations could sell plans. that idea has support from other senators like pat toomey of pennsylvania.
opposition. in other words, healthy people would gravitate towards cheap and it would become something like a high risk pool. a lot of frenzied conversations and it's not clear what the path is to getting a deal. >> how about democrats? >> the only goal is to kill this bill. they want to do everything they can to prevent it from coming up. .here is a motion to proceed they plan to oppose that unanimously. democrats are not even interested in having a discussion about what to do
until republicans give up repeal. bill ase described this a redistribution of wealth from poor people to rich people. democrats have only one goal right now, to kill this bill. will be a very complex drafting skill set that is required here. if you're trying to address concerns on both sides of the republican party at the same time, the danger is your answer the queries on one side and upset further those on the other. in fixing some of the problems with it, you perhaps don't get yourself closer to 50. >> that is exactly the problem. conservatives want more deregulation, less rules as to what kind of planes they can lands they can -- plans
they can offer. moderates don't want that because you end up loosening protections for people with pre-existing conditions which is the most popular aspect of obama care which most republicans say they support. this is exactly the kind of tough balance that senator mcconnell has to strike. it is a tougher one than house speaker paul ryan had because he had a margin of error of 20 members or so. mcconnell has to get 50 out of 52 republicans, a monumental task. david: here is julie hyman with the latest. julie: the lows of the session are being plumbed as we speak.
the nasdaq is on pace to break its recent winning streak. this would be the first down month in seven. the s&p 500 breaking the one present threshold -- the 1% threshold. although it still does remain to be a tale of different groups. we see some degree of strength in the financials. but if you look at the s&p bank index, they have been turning lower than they were earlier in the day. but still near the lows of the session. , the credit subset card companies. we got the stress tests. it did make payouts to shareholders while it fixes material weaknesses in its
planning. mastercard and visa are down in sympathy as well. kind of market continues to support those as well. if you look at the 10 year over the past three sessions, you see an uptick that amounts to 15 basis points herself. -- or so. as we get a selloff in stocks, there is a selloff in bonds. we're looking at oil in today's sessions. oil has had a winning few sessions. and here are some of the oil winners as well.
anna: this is bloomberg markets. the david: trump economy. i'm anna edwards. i'm david gura. senator bob corker says he expects republican leaders to scrap a provision in their health bill that would repeal attacks that affects high income earners. the tennessee republican said the decision to retain obamacare's 3.8 percent tax on
net investment income would help republicans boost subsidies for low income americans. the remarks came after several senators began to question whether the bill should be repealing so many taxes on wealthy americans and the legislation would scale back's exit -- subsidies for the poor. entry revised ban denies from six predominantly muslim nations that do not have existing u.s. ties. approve aprove -- relationship with those already in the u.s.. it takes effect tonight at 8 p.m. new york time. popee in australia charge francis's financial advisor with multiple sexual assault efficiency. -- offenses. official in his ex abuse scandal.
he was taking a leave of absence, proclaimed is in a sense, and looks forward to clearing his name. >> these matters have been under investigation now for two years. there have been leaks to the media. there have been relentless character assassination. relentless character assassination. mark: victoria state police and australia say that pell was facing multiple charges of what offenses thatll generally occurred some time ago. he was ordered to appear in court on july 18. theresaprime minister may leading an investigation into the deadly london high-rise fire that killed at least 80 people. retired judge will examine the start of the fire into rapid
development and future prevention. more than 130 government owned buildings failed flammability tests due to faulty planning or exterior insulation. powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. the south korean president will meet for the first time today. gettingre a common goal north korea to abandon nuclear and missile programs that were expanded under kim jong-il and. the issue is that both leaders have different ideas how to accomplish that objective. the latest is the bloomberg political reporter in washington. to what extent do we think the leaders managed to coalesce around one plan, one strategy for achieving demilitarization of the korean peninsula?
>> that is the real question going into this meeting, the first time that president moon and president trump will meet one another. they obviously have very divergent approaches. trump has taken a belligerent tone, issuing warnings and trying to ratchet up pressure on countries in the region. on the other hand, the south korean president ran on trying to calm those tensions down. the're going to talk about power moves. seen inhat we haven't the past. and it will be a real question of how they reconcile those approaches. david: what would a metric of success be at this white house? we have seen foreign leaders come through and so much center on president trump meeting and
getting a personal relationship with them. is that the case here? or is there substantive policy at the end of this meeting? >> i think it will be a mix of both. the leaders want to get to know each other, develop a working relationship. it is really important as they address -- i think both have said it is the greatest. but at the same time, i expect that they will try to come up with some concrete policy goals. because they need to figure out what they want china and how they can sort of ratchet up pressure unilaterally on north korea. we might see economic sanctions or something along those lines. the missile defense plan and south korea will be part of the conversation? theouth korea has paused installation of that system under the new president. the u.s. is eager to get work on that started again. we will see if they are able to
reach an agreement there and push that system forward or if it will be something to drag out over the next month. david: thank you very much, white house bloomberg correspondent -- bloomberg white house correspondent. trump's into president meeting with the south korean president. a senior fellow for korea studies. and author of south korea at the crossroads. will be available later this year and scott joins us from the offices and washington, d.c. before get back to the issue of north korea, let me ask you about race. -- praise. the deficit and disparity between countries. how keen is the u.s. to get traded addressed? >> i think it will come up primarily because president households some long-standing views with regards to merchandise trade imbalances and south korea has been a target of his rhetoric in the past, long
before he became president. there is a $27 billion deficit that the u.s. has with south .orea i think the south koreans will be under some kind of pressure, rhetorically, at least, to try to close in some way. i think we have seen some signal that the south koreans are trying to do that in terms of inward investment. and the united states announcing it in recent weeks. anna: it is something to watch. in terms of the relationship, they have a free trade agreement dating back to 2012. it is bilateral. do we get a sense that president trump's is -- trump is more persuaded on that? >> possibly. but president trump also criticized, during the campaign. i think it is entirely possible
that there could be a review and an effort to try to revise and maybe strengthen the fda. in order to try to balance the perceived advantages that president trump still feels may --this advantage disadvantaging the united states. the level ofbout engagement that south korea has had with this president? i recall secretary of state rex tillerson traveling there, james mattis being there shortly after. this is a big focus of this administration. >> absolutely. it appears north korea has become one of the top priority -- policy priorities. south korea has had monthly visits from cabinet level tossials since trump
inauguration. and now we have a new south korean president here. it is clearly an intensive interaction and one that really requires the u.s. and south korea to find ways to work together with each other. there is simply not a unilateral alternative. chinese are nervous about the collapse of the south korean economy as they intervene -- the north korean economy if they intervene too much. they also worry about an increased presence on the peninsula. it looks like the u.s. china relationship is becoming more contentious over north korea. i think the united states may want to move forward with secondary sanctions. china has previously opposed that. from thesuffering
results of chinese economic retaliation for the thad deployment. in that respect, south korea does not have that much to lose in terms of aligning with the u.s. or putting that kind of pressure on them. anna: thank you, scott snyder, on the asia council of foreign relations. in an era crossroads, of rival powers. due out later this year. david: find out why ryan zinke he is so bullish on cold. this is bloomberg. ♪
they talk about why the future of coal may not. coal is competitive strip away the punitive regulation field. competitive natural gas under three dollars? you can't make the argument three dollar natural gas is not as real. >> it is a steal. it's a good bargain. , coal isbout baseload still competitive, overseas markets are more competitive. u.s. has been down and we're not picking and choosing winners. the liquid natural gas, natural gas. a pretty exciting future.
happen to the novel generating station, the largest coal plant in the u.s. west. you have a 24% stake in the plant. it is not going to run through december of 2019. then what? how do you keep that alive to save costs? >> they are the maker of the employment not a hope. they voted yesterday to continue on it. we are in negotiations to look at making sure it is economic. coal has tot that be economic on its own. we are not in the business of subsidizing.
julie hyman is standing by. we get a lot of insight into what is going on in the markets. how today started out, the rotation into banks and is [indiscernible] throwing in the towel on a number of different groups and heavy volumes. laurie miss more than 20% above the 20 day average. we've got all three major averages down in the lows of the session. all threeirst time major averages have been down 1%. it's also the worst day since may 17 for all three major averages. yesterday, we talked about the nasdaq bouncing off of the moving average. take a look at the bloomberg. we have a chart of it with the major moving averages. the purple line is that 50 day moving average. we get there below the 60 day moving average. that trend line or momentum that
some traders of been watching here. we have fallen below it. we have also seen a broad-based selloff. you still have energy and financials and the green, but much less so than they were earlier. eight of the groups in the s&p 500 are down by more than 1%. by looking at the decline in the nasdaq today, discretionary and stables are down. within technology, it is one of groupst momentum driven doing the worst today. that is semiconductors. semis, semi-acquit meant makers, all tumbling. it is not, however, just sort of appear risk off kind of day. at least not if you look at other asset classes. it is a mixed picture.
you've got gold falling which is not necessarily what you would .xpect thed: julie hyman with update this afternoon in let's continue with the embattled health care bill. mitch mcconnell is working to win over republican holdouts after pushback from conservatives. they were not ready to support a very prominent and reported member of the republican party. >> very are joined by rnc chairwoman ronna mcdaniels. >> thanks for having me, kevin. senatorrday, i asked ted cruz about the status of this health care proposal and he said he didn't want to put any artificial deadlines on it.
be health careto reform by the august recess? >> i think that is the intention. you are seeing the senators come together. listen, republicans are coming together and trying to find solutions. areicans across the country looking for relief. the democrats are sitting on the sidelines. they created this problem and decided they don't want to be part of the solution. working as hard as they can to start helping the american people. democrats are not going to be on board with this so he can either go to the far right or move to the middle. democrats are framing this is the bill being little more than tax cuts for the rich. you mentioned the soaring cost of premiums. you know this from your time during the campaign that it was a large reason for many of the michigan, wisconsin,
and pennsylvania voting for president trump. how do you pushback against the notion that these proposals will hurt low income voters? should the majority leader moved to the right or the middle? >> you have to look at the evolution of this. obama care has failed on every level. you couldn't keep your doctor. he couldn't keep your plan. premiums have gone up. several states will have one insurer. they jack up your premiums. we will have to find a consensus. but there are things republicans agree on universally. we want to make a patient-doctor relationship stronger. put more flexibility in the states so they can deal with their uninsured and make it a better plan. that.have to craft but the choice is failing obamacare or finding a solution. republicans are the only ones sitting at the table.
it is shameful that the democrats are nowhere to be found when they created this mess to begin with. you satisfied with the presidents level of engagement? >> the president is totally invested in leading on this issue. he had the senators over to the white house the other day. there is nobody that understands what the american people are feeling better than president trump. he talks to people on the campaign trail saying, i need help. all the time, i have people come up to me and say that my premiums are so high that i'm having to choose between whether i pay rent or i insurance. not even health care. health insurance. this is not sustainable. it would be so great if democrats would come over and help find a solution.
decidedately, they have to play political football with health care but we are laser focused on the american people. the president earlier today tweeting about a female reporters facelift. it tweeting about her looks. you can't say that is helping unify republicans or helping advance the issue. what are your thoughts on this tweet about a female reporters looks? we are focused on the policy of health care in those things. there are personal things going on. joe, sinceorning january, they have called the president a thug, a goon, that he has had dementia, mentally ill, embarrassment, a dictator. they use that platform to disparage and demean our president. are pushing on him and
today he said, i'm not going to take it. he is a human. he showed that today. that will not keep republicans from focusing on the american people. >> another big development later today is the guidelines on the temporary muslim ban, is this something that you think could have impact on 2018 races in states like michigan, pennsylvania? a winning issue politically speaking and from a policy standpoint? >> i think this is a very measured temporary travel cause -- pause. country weng to our don't know anything about. isis says part of the plan is to -- um -- through
through travel borders. it is important that we keep our citizens safe. he wants to keep our country safe. we want to look at the vetting procedures and make sure we have everything in place our american system safe. 2018,we head toward exceed $2 million raised for the rnc in the first few months. a lot of money and paul ryan saying that tax reform is still on the to do list. what is the status of the 2018 report card for all this? have to get these things done and we want to get these things done. you have seen the stock market do well with the belief we will get tax reform. the president was to get the economy humming again. .e want jobs and wages up
we want to see better economic growth. care done get health and go on to tax reform. very much appreciate you coming on bloomberg. no one should tweet about anybody's looks anymore. thank you very much. >> unless you are saying they are looking. >> i agree. >> i will take those tweets all day. thank you very much. thank you, kevin. i am sending that tweet to you right now. now coming up, we will look at how attorney general jeff sessions pressure recusal is helping him undo obama's legacy behind the scenes. ♪
anna: this is bloomberg markets, the trump economy. david: check the markets up this afternoon as we see a selloff in the afternoon. julie: we are seeing a steep decline for the major averages. the worst decline since may 18. we're sitting on relatively heavy volume as well. now up ae dow is little bit. in if you look at the groups the s&p 500, we have tech having the biggest selloff. other groups, consumer staples, discretionary, there we go.
all of them down. financial's and energy are still in the green at the moment. david: breaking news across the bloomberg as well. the press secretary will meet with the russian president vladimir putin and the upcoming summit. he will meet with his russian counterpart. under normal circumstances, the u.s. attorney general would be deeply involved in any investigation in a foreign power interfering with domestic affairs. it has allowed him to focus on the tough on crime agenda and dismantle large parts of president obama's legacy without creating big headlines. the editor of bloomberg business week.- business the latest issue of that magazine. continuationhis a of what former senator jeff sessions was doing when he was in congress? , ait was who he was
prosecutor. he's operating largely out of an 80's and 90's war on drugs type of agenda. drug offenses,n increasing sentencing for drug offenses, crackdown on things like medical marijuana. inling the opioid epidemic the u.s. a result of cartels from mexico and need to crack down on immigration. surprise that this is his agenda and his position. the surprises how much concerned there is about whether or not he's operating from a playbook that isn't relevant in the times we live in. or exacerbating the types of concerns we see with the opioid epidemic, african-americans in jail. anna: it leads to questions about how well sported he is in that view. others around him from the same page? is he working on his own or does he have support?
trump has not yet nominated a handful of some attorneys that he needs to. >> he has a huge staffing problem. but the tensions between donald trump and jeff sessions are well-known. the probe into russia hangs over the administration. it will be interesting to hear what they say, to say the least. he's apparently been very unhappy with the mess that continues to dog his administration. and the investigation continues about what role he will play. with russia on the front burner social mediake being on the front burner, jeff sessions is able to do a lot of this work in the background like cracking down on drug offenses. it is quite unpopular in large parts of the country. david: what about voting rights issues, something the obama administration worked very hard
on. how is he going about changing those? >> he's of the position that we need to be very careful. respect, they are abusing access. there's never been any evidence. you know that is the case. voting rights is a particular issue that only crops up around a midterm or general election. to become something that resonates. the obama administration worked so hard to outreach on this, to make it front and center. exercising their constitutional right to vote. it is something that will be difficult to keep public attention on. is he making a lot of noise in police departments or is he changing things on the ground? >> this has a lot of public support.
they support armed forces and fire departments. the issue is we also live in a authorities,lice have a prosecutor crime and do with people in the streets. it the militarization of our police is front and center in cases like ferguson. it does cut both ways. right now, the trump administration and the trump ace is quite solidly behind the pro-police tough on crime approach. david: he's been able to do this, not making headlines, but a delivery strategy? >> it is not only a deliberate strategy, this is something he believes in. that we need to draw clear line between bad guys and good guys. that is who jeff sessions is. there are those of us that think that is a harsh and some plastic
view of the world in 2017. more attention does go to these efforts he's making and more nuances and complexities. anna: bloomberg businessweek editor. make sure to pick up your copy of bloomberg businessweek on friday. let's start with the headlines on the bloomberg first word news. mark: president trump has a plan to help with aging fleets of u.s. nuclear reactors. estimated to be losing $3 billion a year. it is the culmination of the white house's energy week. the president to set to announce a comprehensive review of nuclear regulations. stopping short of the federal interventions advocate say are needed to revitalize the industry. the president will highlight u.s. oil and natural gas x boards. they will carry the speech live. the commissioner for high
refugees hopes that the u.s. an "generous report." this follows the new travel ban which takes effect at 8 p.m. new york time tonight. theequires new criteria for set applicants from six mostly muslim nations. the u.s.an says if except sivan 50,000 refugees a year, it would remain the world leader in resettlement. an iraqi army commander says his troops have capture the landmark mosque in the city of muscle that was blown up by the islamic state last week. troops are pushing to the last neighborhood still held by islamic extremists. 2014 is where and they have the self-styled caliphate on territories and iraq and syria. china's president tried a soft touch.
he sought to persuade a divided city of continued support. beijing considers the one country systems framework. against challenging china's authority. global news 24 hours a day powered by 2700 and analyst in over 120 countries. i'm mark crumpton, this is bloomberg. trump'sesident donald revised travel ban restrictions are expected to begin at 8 p.m. tonight. more on this planned meeting between president donald trump and vladimir putin. more on that. this is bloomberg. ♪
anna:+++ meet with russian president vladimir putin at the upcoming g-20 meeting in hamburg. this news just hitting the bloomberg in the last half hour. for more details, let's bring in the national security reporter from washington. your initial thoughts about this? >> i think what you are seeing is -- i would not read too much into this meeting. the white house is saying that you will have a packed agenda and you will also have meetings with almost 10 other leaders. the president of china, germany's angela merkel. they are describing this as one in a long list. i would not expect the meeting to run for very long. i would also say extremely unlikely they would talk about russian interference in the u.s. election, an issue that president trump has danced around a little bit.
i would not describe this as a major meeting, a lot of people have been wondering. will happen with the reimplementation of the travel ban? have the supreme court opinion on this heading down a couple of days. what guidance has the state department given representatives about what they can expect. oh ratherve unfurled howthy cable that explains officers should interpret this. the most interesting activities that it leaves significant discretion to the officers. one thing we try to pin down is how many refugees and immigrants would be caught up by these restrictions. they called a bona fide connection to a family member,
that is expected to be a very significant number. of incominglf refugees have a connection to family members. >> they need to prove this with formal documentation? any further guidance on what this means? >> it would likely be just proof of relationship. ofob offer or proof connection to that business. these are things that will need to be worked out in the coming days and we're likely to see many more loss roots and potentially, protests as the ban takes effect and the impact shakes through the system.
think you much, bloomberg's national security reporter. quick word on the headlines from jamesthink you much, bloomberg's national, the nonvoting member t does not see a big equity price impact as the balance sheet unwinds. love google talking about if the selloff has something to do with the central banks hawkishness. from global central banks and last way for hours. >> will have live coverage of president trump's remarks on his energy policy from the department of energy that begins at 3:25 p.m. new york time and you can watch all her interviews on the bloomberg. news charts and more right there at tv on the bloomberg. ♪
scarlet: we are live at bloomberg world headquarters in new york over the next hour, here are the top stories we are covering from around the world and on the bloomberg. the tech sector force is a lot across major indexes today. dow andextending to the the s&p with equities holding near their session lows. same with markets, deals are fighting for attention amidst a selloff, walgreens scrapping its takeover bid from rite aid, looking to grab a of the store count instead. and will blue apron land a good public debut? the appeal price was cut more than a third. -- ipo price was cut by more than a third. julie, so much word about the tech selloff. >> it is resuming in today's session. we have the nasdaq