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tv   Whatd You Miss  Bloomberg  September 21, 2017 3:30pm-5:00pm EDT

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eligible for financial systems p are hundreds of homes have been destroyed and officials say it may be months before everyone gets their lights turned back on. president trump plans to visit puerto rico to assess the damage and he spoke about the devastation while meeting in new york with ukraine's president. president trump: puerto rico is in very tough shape. grid isectrical destroyed. it was not in good shape to start off with, but the electrical grid is totally destroyed. and so many other things here and we are starting the ross is now. we will work with the people of puerto rico. city, a racexico against time to rescue a 12 euro girl trapped in the rubble of the school. could ber students trapped with her, though it is are stillether they alive. the girl has been there since the earthquake rocked the mexican capital and the
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surrounding region. more than 50 people have been rescued and the death toll is now at 245. the united nations today unanimously passed a resolution to investigate crimes in iraq. -- anary-general antonio investigative team to help iraq's authorities to investigate crimes committed by militants and bring them to justice. long timehave taken a to get here but today's resolution is a landmark, a major first step toward addressing the suffering an injury of the victim of -- victims of crimes committed in iraq. mark: can you's electoral commission has announced move the date for a new presidential election to october toy sixth. the election was nullified by the kenya supreme court. thatew -- it was ruled
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they did not follow constitutional guidelines. it is the first time a vote has been legally overturned and africa. decisiondent says the subverted the will of the people. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. >> live from bloomberg world i amuarters in new york, julia. scarlet: i am scarlet fu. the s&p 500g -- trading for the first time in five days. apple leading those declines. joe: the question is what did
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you miss? president trump has new sanctions for north korea's nuclear ambitions. across the globe, spain bracing for more protests after seeking to block and independence vote. still confused by the mural it -- meet euro -- meteoric rise? a longer-term -- >> facebook, the company has investigatorswith to release advertisements purchased by russians to influence the 2016 campaign. ark zuckerberg starting facebook live address to discuss these issues. bloomberg's businessweek cowrote the story this week that focuses on facebook passes problem with russian propaganda and other tensions with washington. you can see live images their of .ark zuckerberg
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it is the bare minimum they could do here, to hand over these advertisements to the authorities. it is a far bigger question about how they stop this happening go of -- going forward. the big question has been facebook two weeks ago said these russian ads, 100,000 of them, the question people have asked is what were the ads? senator mark warner basically raising all heck trying to get facebook to disclose more. tos was the first step something. the other question is what does robert mueller have? youras you point out in article everyone should read, this is the tip of the iceberg lately for facebook. and interesting quote from mark zuckerberg that says it used to be not controversial that we want to connect everyone in the world and now it is. what is interesting is there is all the stuff going on. no one really thinks it will affect -- >> that is playing into the backlash.
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strongk is unbelievably as a business now. it has a half a chilean market more2 billion users, it is powerful than any media entity ever. part of why people are anxious about this is the fact it is so powerful and so strong. scarlet: it is an unstoppable force right now p are what kinds of changes has facebook made or considering given all of these advertisements paid by russians? >> what they have done is they have shut off some of the automated aspects of the platform. it is a self-serve landform where anyone can buy an ad about anything. they are trying to bring a little more to this but facebook's whole business is set up a around automation. there is no easy way to generate around this. >> it is a question of whether they are a media or a tech company now. totially, zuckerberg tried play down the influence the
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company has. as you pointed out in the article, $30 billion worth of advertising payments suggest they do have a lot of influence. how does he calibrate that message? >> he started softening. news, what is that? we had nothing to do with anything that happened in 2016. since then, he has walked that back and said in various ways, we recognize we have responsibility. attempting tod basically convince people facebook means well, but the truth is they do not fully have their heads around the scope of the problem. at least i don't think so. worth of ads00,000 spirit we do not know how many other ads are out there and if you believe senator mark warner, there could be a lot more. the group that what the ads is basically the one that everyone knew about. there could be much more to this. >> we never even got to talk
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about campaign 2020. you have to read the full cover story on mark zuckerberg in the new issue of bloomberg. >> are you referring to candidate zuckerberg? >> potentially it you have to read the article. steven mnuchin and just wrapping up a press briefing at the general assembly addressing levies against north korea. listen. bethese sanctions will forward-looking and apply to behavior that occurs following today when president trump signed the executive order. financial institutions are now on notice that going forward, they can choose to do business with the united states or with north korea, but not both. sanctions usher in a more conciliatory tone from north korea? research the senior fellow at yale law school and senior fellow at --
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great to have you on the show. it is interesting p are you wrote a blog saying as far as you are concerned, when you look what h.r. mcmaster is saying, they want people to believe that they don't believe north korea can be determined at this point. put that on top of what we saw with sanctions today. >> a great question and they are hard to reconcile because if you believe that an actor like kim jong-il and cannot be deterred, you're saying he cannot respond to rational incentives to be able to determine what is needed for his own survival. if he cannot do that, you would not expect them to respond to sanctions either. launchexpect him to another rocket. >> nevertheless, i am heartened to learn they are announcing new sanctions today here in for nothing else, it is because the miss regime united states is not interested in a military policy against north korea at least for
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the time being. sanctions take several months to bite. the same thing today. it suggests they're willing to give economic pressure several months to work. scarlet: why have we not her china confirm that? >> a great question. it is hard to me -- for me to say. be there is some caveat explaining this. china is heading into its 19th party congress, a major transition that happens every five years. north korea is a highly sensitive issue in china. they have a long-standing coming this party tied. china continues to support up to 90% of the north korean economy. it is a big deal for china to be seen to be really be putting the screws on north korea and china's leadership might want to explain this decision in a careful way.
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joe: what is the faction in china that it feels is really important to continue to bolster? continuemportant to ulster north korea, many senior leaders in the communist party because of their shared common is history. increasingly, china's leadership has understood some costs are mounting overtime. china has generally taken a different set of views because it prefers to see stability on the korean peninsula as opposed -- >> a good point especially since china does not want to destabilize korean peninsula to result in refugees crossing its borders and using of resources. president trump has said he
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seeks a complete denuclearization of the korean peninsula. is that opening gambit because it seems most have conceded that will probably not happen. >> i hope it is opening but i was a little surprised to hear him reiterate that today because you much no analyst, career or the nuclear issue there, thinks it is a realistic goal that kim jong-il and will give up his nuclear weapons anytime soon. a more modest goal we could talk about would be some kind of arms control agreement that would put place -- put in place limits overtime but even those would be hard one. we could see sanctions as a precursor trying to reduce the types of sanctions that might actually get us there. atwe have had fiery director -- fiery rhetoric from trump. at the same time, the branch saying denuclearization, we want to talk, still available to
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fiery language from the japanese. where do the south koreans stand at this moment? they are arguably in the fire line. >> a quickly important question. as of this week, the president of south korea appears to be communicating solidarity with president trump at the last several weeks of the relationship, it has been really rocky. president trump for the south korean president was elected threaten to end the trade deal between the u.s. and south korea and he threatened to for south korea to pay for the missile defense system, and he reiterated the same threats just a few weeks ago, the same week he called south korea appeasers for wanting to talk to the north. the relationship has not been good standing. public opinion of the u.s. president has acts -- absolute plummeted in south korea. the u.s. south korea alliance may be the place where the most damage has been done during north korea's -- these past few months. much.nk you so
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>> i love your optimism. >> coming up, one of the biggest market stories is the huge valuation gains for cryptocurrencies. we will decrypt the value of has long-termy it benefits. from new york, this is bloomberg. ♪
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>> the most well-known of cryptocurrencies, bitcoin, has exploded in value. startups are bypassing venture capital in favor of coin offerings. do they eventually stabilize and how do they stack up against other currencies. a cryptocurrency analyst at stanley morgan, before we get to
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what is next, frame for us, what is driving what appears to be the demand for these cryptocurrencies? >> a great question. the primary thing people are looking at, a new technology applyped, we can start to that to the concept of currencies and we may do something where instead of having all transactions happen through mastercard or a bank, maybe we could have a decentralized system? >> that sounds rational. >> but it could actually be difficult. takes a lot of power and net working and a lot of time. what people are trying to come to grips with. i think people like the concept and that is why currencies have done so well. a growing interest in wall street institutional money. there is a reason you are here representing a bank. my question is the primary case
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for bitcoin is censorship free transaction. essentially, the transaction government would that -- does not want you to make. what kind of ambivalence does that present for regulated financial institutions as we sort of think about how these are evolving? >> a really good question. we do not know yet. ist bitcoin trading speculatively based. it is people speculating on the value rather than using it for transactions. that being said, most governments do not want to step in the way. they want to see what happened. they are cognizant of the money laundering issue. they're willing to see what happens. >> they get absorbed by incumbents as well. that is what we have seen. seen for at we have
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number of years now -- >> another great question to when you look at financial development, unless it is a company by changing consumer behavior, it has to be absorbed by the incumbent and they co-op the idea. we see incumbents moving on that direction. they are looking at underlying technologies. joe: one bitcoin first came on the scene, there was a common refrain that this is kind of interesting but the underlying technology is where it is at here this has shifted the other way. i don't know anything is happening with underlying to knowledge of but i've got to get my money to bitcoin. get, thate sense you more excited about currencies days as opposed to underlying technology? >> our clients like to make money here at when they see
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things go up in value, they get excited about that. it's hard to make money right now, you're right. the levels of investment going in, i think you're seeing a lot going to block chain, at least as much going into the ink -- to the currencies. >> how do you think about cryptocurrencies as assets? are they currency, or equity? >> every client has their own view. some think their assets and some think they are not. it is clear they are too volatile to function as additional currencies. at the very maximum, you could treat them as assets. expectation for the price to save lives? what would be the catalyst for that? >> that was one of the more .nteresting things
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everything involved deeply with the volatility as a problem, they are starting to come up with ways they would be able to stabilize those at some point. it is not just if they will. think the participants are coming up with ways. >> how? >> think the participants are coming up well, -- >> one of these crypto hedge funds, and the big problem is lack custody. they have to store these on a shooter. could you ever see a morgan stanley or financial institutions get into these four crypto assets? >> i don't know. if we get help clients, i think that is what we're in the business of. they are real storage problems, storing it involved.
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seems a perfect fodder for a remake of diehard. the priority is to really do what is best for the client. >> thank you so much. coming up next, dr. pepper earning forecast as going flat. this is bloomberg. ♪
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>> time for a look at some of the biggest business stories in the news right now. it's workforce around 2500 jobs in an effort to lower expenses and push technology according to people familiar. led by the billionaire ceo since it was founded in 2004. manchester united expects big tech companies for the upcoming
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ticks $.8 billion broadcast contract. the new ceo finds a strong interest in a conference call today. they hope interest for companies other than c group will travel up the price. that is your bloomberg business flash. >> let's get to the stock of the hour. we are looking at dr pepper, shares falling the most since june after the company trimmed it earnings forecast. m a is here now and we should add that dr pepper, snapple, for julia, who has never had a dr pepper. joe: missing out. >> the company announced a number of headwinds today. a lot of them focused on natural disasters. to the earthquake, mexico, her can activity we've seen across the caribbean and southeast, but that impact is not quantifiable.
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the bigger issue is the supplier they haven't met the co-, which has defaulted because they could not access the particular revenue needed into which you put dr pepper. it is not something that only of next dr pepper. publisher yuan number of other companies following today on reduced. the be a problem for their margins and wells fargo said they could also face issues. the is it unrelated to earthquake and natural disaster? that is its own thing? >> yes, they are two separate things. is this expected to just be right now? will they be able to source another or is this a long-term issue? nowhey cut costs so it is $4.53 but they are not expecting problems in 22018. a number of analysts so comment
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on this today actually. unwelcome,ews is they are not going to be, they are not structural issues for them. we have another chart which shows you how the market looks --the u.s. and why coca-cola our bloomberg intelligence analyst say is about stealing that market share because they have moved to the low calorie drink and things like that. it is not just dr pepper but snapple and iced tea and a low-calorie drink. joe: i am a cell surgery but that sounds that. i will have to try it out. collect thank you so much. our stock of the hour. the market closes next. less than four minutes to go before the close. the dow taking its winning streak. 500 falling for the
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first time in i believe four or five days. the nasdaq losing a most half of 1%. the biggest underperformer of them all. from new york, this is bloomberg. ♪
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>> bowl ball turning in the tightest ranges in history. tech shares leading the decline as apple selloff continue. i'm julia casserley. joe: if you are tuning in live on twitter, welcome you to our closing bell coverage every weekday from 4:00 to 5 p.m. eastern . scarlet: let's begin with the market minutes. u.s. stocks taking a breather after a huge run, in terms of length, not necessarily gain. the dow jones falling a quarter of 1%, first decline in 10 days. the s&p 500 snapping a four-day advance. the nasdaq laggard, half of -- off by half of 1%. we do know some analysts said that iphone 8 orders are weaker than earlier models. that might mean a reduction in the forecast for amity iphones apple sells.
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pepper,ed about dr. ca snapple. resin problems in the factories which affects the cans. by 2.75% likely with -- the decline of bitcoin. nvidia has been correlated with the rise of bitcoin. tesla down, ending one of its model s models. joe: now let's take a look at the government bond market. withction was yesterday the federal reserve decision perceived as being cautious. yields higher, but today barely anything going on.10 year yields up one basis point. julia: a bit of a reversal for the u.s. dollar off the back of that, down 3/10 of 1%. high ahead of prime
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minister may's speech tomorrow. will she be carrying that tough brexit line, which may be more because -- positive for the outcome. let me show you what is going on. i want to focus on the chinese youan. in the last nine days, a 1.4% decline. and not the focus on what is going to happen on the daily reference rate. you can seen, what other bloomberg predictors are doing. i find it super exciting. all sorts of things you can see on the left-hand side in terms of the number is for various banks. -- things. this gives you what the whisper number is. scarlet: it is not just a jobs report. julia: exactly.
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power of bloomberg. joe: finally, let's take a look at the commodities. basically nothing happening in the oil market today. still waiting on further indication is of supply and demand. basically flat but still over $50 a barrel. gold selling off, back below $1300. it fell yesterday in the wake of the federal reserve decision, continuing that selloff today. some weakness in the industrial metals, nickle, some concern about various iron or and metals. we have seen some weakness, not just those. copper has been weak lately. the industrial metal seven doing well lately but taking a bit of a breather. those are today's market minutes. scarlet: markets for the most the -- risk barometers like dollar highly indicating any concern about north korean sections. price is a strategist
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for here at bloomberg and joins us now. where do you see this complacency showing up in the markets? what metric are you looking at? cameron: is a strategist for here at bloomberg and joins us now. dollar-yen is the obvious one. common sense may suggest if there are problems with north yen weakens but the pavlovian responses to buy in because it is perceived as a safe haven. appeared the volatility is not highly priced overnight kind of tells the that people are not expecting a lot. defydoesn't the yen always conventional wisdom that a nottry would say it would be one of the strongest safe havens in the world. yen strengthened after the 2011 earthquake. cameron: japan has a very strong that international position. they own a lot more of the rest
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of the world. they have a lot of depth that is usually domestically so it is kind of a relevant -- irrelev ant. julia: we always say the markets price at geopolitical risk. in this case it is the proximity of japan which is a fundamental. questioning the element of complacency. cameron: listen, the degree to which outer rhythms -- algorithms are programmed based on historical relationships and they don't is kim jongthat it -un. there is a risk and version, you buy yen. the treasury market to year yields out the height of the thattells you
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-un. it is not really on the market radar anymore. it is not really on the market radar anymore. yesterday's news. scarlet: speaking of yesterday's news -- i don't mean it like that. overnight, china's credit rating was cut. when i saw the headline, thought this might not be good for a market that might be nervous. the s&p was actually higher than the others so now they are equivalent. scarlet: let's listen to what stephen roach of yale university had to say. stephen: china has a debt problem. china has talked directly about debt problem for a number of years. you could be critical of china for not having moved aggressively to force its state on enterprises to deliver. scarlet: we go back to the debt problem. it is not anything that is going away but doesn't it
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downgrade, isn't it important for symbolic reasons? the government cannot be happy. cameron: i am sure they are not happy about it. if they were away but doesn't it taking china's ratings to a new low, that would be one thing but this is making it equivalent with what the other non-chinese agencies think of chinese credit. joe: bringing the story back home, during the summer, what about all this low volatility -- but now it seems like the markets have taken it to a new level in the last nine days. a half of a percent range. nothing is moving anything. cameron: to some extent, this is reflected by single stock levels. over the summer, the story was the correlation amongst stocks in the s&p was very low and that is what index levels fall. what we have seen is the average volatility of individual stocks have gone down. then youcks move, cannot really expect the index to move very much. that is the thing, it makes
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sense that on individual stock basis, that investors are pulling back a little bit. julia: great to chat with you as always. readying for more protests. we head to madrid to get the latest. from new york, this is bloomberg. ♪
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mark: it is time for first word news. president is ordering new sanctions on north korea that opens the door to blacklisting individuals and entities doing business with pyongyang. steven mnuchin and says the administration is calling on all
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countries to stop trading with north korea. >> this new executive order enables treasury to freeze assets of anyone conducting goods,cant trade in services or technology with north korea. ofalso allows us to access actors of supporting north korea's textile, fishing and manufacturing industries. addedsecretary mnuchin other countries can choose to do business with either the u.s. or north korea, but not both. south korea's formally asked for another special joint committee discuss the free trade agreement. the u.s. trade representative originally discussed it back in july. a second meeting by negotiators in august failed after kim said washington's requests were one-sided. president trump has repeatedly called the deal a job killer.
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russia is warning the united states it will retaliate against american backed fighters in syria. russia is accused of fighters of firing on government ships battling for territory. they are fighting alongside syrian forces. the russian defense minister says any further attacks will be a meal he met with retaliation. the formal warning has been delivered to the u.s. in qatar. special counsel robert mueller investigative team has asked the white house for documents concerning michael flynn's job as national security advisor. information leading to a question of a june 2016 meeting attended by donald trump jr. and a russian lawyer. mueller's office is excited to interview a half-dozen people. mueller was appointed to investigate possible coordination between russia and the trump residential campaign. powered by more than 2700 journalists and analysts in over
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120 countries, i'm mark crumpton, this is bloomberg. scarlet: spain's central government is sending 2000 national police and civil guard officers to catalonia where a local police may be unwilling to enforce a court-ordered shutdown of an illegal severus referendum. investors are relatively calm. let's take a deep dive into bloomberg. this really highlights how investors are not demanding too much to hold spanish tenure debt. this is a normalized the chart that goes back three years. the white line is spanish and german. little change relatively speaking. ignore the y axis. this is a normalized chart so we are looking at percentage moved. this is the portuguese-german spread. different considerably especially in the wake of s&p. atin looks ok when you look
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extended isolation but investors are pricing the political turmoil relative to a country like portugal. julia: that is quite fascinating for anyone who is covered these stories. actually to see that differentiation -- scarlet: what a difference a couple of years make. joe: remarkable. julia: for more analysis, let's bring in maria. i know it is late. thank you for joining us. talk to was about this referendum because it is illegal. it is not allowed under spain's rep -- constitution so do we expect this referendum to go ahead? maria: that is the whole point. on the one hand we have the catalina government saying it will happen and the spanish government saying it is not going to happen. the key question is will the vote happen? we think based on are reporting that there will be some votes and pulling sessions will open
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with anhink of a vote community recognizing that will probably not happen. sources close to the government are telling us the government will not have the logistics to hold this vote. and they don't have the money to carry out. joe: what specifically is the central national government doing to prevent this vote from happening? maria: they have tackled two fronts. they don't want to have confrontation. it might actually jeopardize the normal lives of people. they want to give this impression that life is going on as normal. at the same time -- this is to give some context for international viewers, like many other regions in spain, they cannot go to financial markets to cover their needs. they turns of the central
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government and asks for funds. with the central government now is doing is is that of giving this money to the government, they are making payments directly. they are not emerging funds to the catalina government. they're doing this directly. julia: they argued that they gave away, subsidized the rest of the country. they can operate independently. financially, they believe they would be better off. go back to the idea of this referendum because i was there for the last referendum vote they held and while the majority of people wanted the opportunity to have their say, it was only around 40% of people actually, according to current polls, that want to break free and independents. if you think that is why the market is ignoring this really, because the bottom line is a vote was held, separation would not occur according to the polls. maria: that is a great point you are mentioning. two things that is super
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important and we need to separate. one is the desire to actually hold a vote and a different one which is the break away from spain. i think when you talk about where the market is not concerned -- we have been here before. we have seen this before. there was a 2014 vote. 2015 regional election. we have been here before. investors have seen this and yet nothing has ever happened. spain was very different at the time. we have seen an economic turnaround. strong economic fundamentals. strong job creation. fundamentals for spain are much better and at the same time we are seeing investors not buying this anymore. nothing really happens. scarlet: that is really important. this could be painful. he has a weak government, a minority government. what does it mean for him? maria: that is so crucial. a minority government, i would
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say it is a weak majority. some of his rivals really want him to be really tough and get it done. , at the same time, some of his rivals he needs at the same time to get votes, like get a budget done, they are saying you should sit down and listen to what they are saying. that a regional financing and more infrastructure spending -- they want to talk about. letting the market could react to that. if we start to get the sense he can no longer work with the government, that is when jitters actually kick in. julia: you are in madrid. is there any sympathy here for in regards to the response the federal government is making and the relief that perhaps they are being heavy-handed because the risk is people in catalonia will say they are being repressed. maria: the government knows
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that. they know they have to keep disproportional because they don't want to play into this line of being an oppressive government, of trying to squash of the free will of the people. constitution -- it is so crucial for the democratic order of the country and everyone has to obey it. we and if that constitutional longer applies overnight, that take away any kind of democratic fundamentals that shape the political life of politicians and everyday people. scarlet: good point. maria, thank you for staying late and giving us perspective. coming up, the u.s. ambassador to the united nations nikki haley is set to give a press briefing at the u.s. -- u.n. general assembly in the u.s. levy against north korea. we will bring you her remarks live when it begins. we are waiting for her to step up from the podium. from new york, this is
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bloomberg. ♪
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julia: china's 814 mile long confidence. the president said it would pay for compliance against sanctions for north korea. the country's northeast rust belt neighboring the kingdom has long dependent on trade across the border for both of his local economies. joined bywhere christina, economic editor for bloomberg businessweek. great to have you on the show. i love this story because i think it is an area we don't necessarily look at when we hear president trump putting pressure on cheesxinjing ping. christina: we sent some reporters to the border to get a feeling i've how these policies
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are affecting local communities. what we have heard is basically people being really frustrated that the sanctions are cutting into their livelihood when they should be directed at korea. julia: this was the sanctions specifically from north korea. cristina: the one village we went to depends largely on imports, not just repeating residents but also their wholesaling going on. those sanctions stop those businesses and they are closing. scarlet: in a lot of the towns along the yellow river, there are a lot of ethnic koreans who lived in china. they are like chinese koreans. how much sympathy did the reporter sans from the local community towards north korea? cristina: we didn't really tap into that much because we were mainly asking about the economic livelihood. i think there was a sense that china was not part of this face-off.
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that the north korean regime was not targeting them so there was not a palpable fear about war breaking out, but there was concern about how people will be able to feed their families. joe: how big are these regions? cristina: we are talking about one fringe part of china's rust belt, but it is a long border. some of it also touches close to russia. there is some russian influence too. julia: we cannot underestimate the importance of this northeast region and the struggles it was already facing with the result of the economic transition china is undergoing. it is a double wedding -- whammy for this region and a difficulty for china given we keep talking about it being the u.s. equivalent of 2016. it piles the pressure on the chinese president at an important time. cristina: we talked to a lot of people actually lost their jobs
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and began in the 1990's to basically with draw support from state owned enterprises. this was done in preparation for china joining the wto. but, there has been deindustrialization in the area and nothing has emerged to revive -- to provide with the area needs. it is what we here in west virginia, places losing coal jobs. julia: what about the response from officials because in the past officials have not make surein order to these sanctions are being abided by. that this time is different and they are actually complying. cristina: off the record, summit he said in those terms -- this time is different. there is a sense that it really does matter to beijing. beijing does not want more pressure to bree brought to bear. they said they have to go along, they have to make signs heeding.
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julia: are they afraid of war? they are right in the firing lines. are they afraid of u.s. military response? cristina: amazingly, not missiles headed towards them but i think in beijing there is concern of the refugees which would affect the area. of the big themes we have seen when talking about china in recent years and their willingness to shed excess capacity. north korea aside, lots of legacy state owned institutions. they are not very efficient anymore. in lot oppression. -- a lot of pressure. what about this broader macro story in china that they know they need to evolve asset model but legacy companies provide a lot of jobs? cristina: a lot of them have moved out or downsized. they were iron ore producers, coal mines that they were heavily dependent on.
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a lot of that either have gone under or cut back their workforces. the problem is the same as other countries face which is even with investment and subsidies, which beijing is funneling into the region, no new business has emerged to take their place. recently, an academic put out a report saying we should move light industries into the area. those jobs are moving to vietnam. they are already on their way out of china entirely. forget: it is easy to that sometimes china faces more pressure than the u.s. and this is a perfect example. cristina, thank you. global economics editor at bloomberg businessweek. you can read this story in the latest issue. coming up next, u.s. ambassador nikki haley will be holding a news conference in moments. we will bring you to her comments lives when it begins. this is bloomberg.
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scarlet: we are waiting for u.s. ambassador nikki haley. she is expected to speak to the press any moment on sanctions on north korea. as we await her remarks, let's analysis of the president's remarks of the executive order today. we are joined by craig gordon and kevin cirilli. they join us from our washington dc bureau. kevin, talk a little bit about the context in which the president made the remarks about north korea and the follow-up from steve mnuchin. kevin: the president saying that essentially this is one step further in the tracker north korea to get rid of its nuclear ambitions. i would just note that i think
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u.n. ambassador rice nikki haley has played such a crucial role and it is receiving top billing not just from the international community but also from the u.s. administration. the president has departed new york city on route to that mr. but there is no question that nikki haley is really playing a key role here. she has been able to get not just china but russia at the table for a series of rows of sanctions. in the past couple of hours, her counterpart from russia criticizing the executive order from president trump, saying that it is war hysteria and urging the united states to pack off. you look at what the chinese what they allegedly done and it looks like the administration has gotten china to the negotiation table to deal with the growing threat of north korea. julia: you would expect that
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response from russia. the presentation at the forefront as well. craig, chinese is a really interesting moment. you look at what president trump announced earlier and then you saw the stonewalling really from tove mnuchin, the details what extent china is actually involved. a conversation to talk and let them know this morning with the details are. what do you make of this? craig: it is an interesting day. you had a moment today when president donald trump praised the chinese president. been very critical of the chinese handling of the nuclear situation and trade-offs. the idea that steve mnuchin is talking to anybody and they do seem to be in concert on this notion of joint sanctions on north korea seems like a pretty big day. china's central bank has told its lenders they need to stop
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doing business with north korea, shut down some accounts. that is unheard of. i think donald trump is having a pretty good day and nikki haley will take some of the credit for it when she steps to the podium. joe: what specifically are we hearing for from nikki haley? craig: there is a lot of optics and a lot of hard work still ahead. if china is actually taking some tentative steps to cutting out some of the north korean lending and money flow back and forth, but what really close back and forth between china and north korea is oil. have they been able to get the chinese to do anything about that? that is what china does not like to talk about and make these multilateral negotiations. it is really their trump card over north korea itself, controlling the actual flow of energy. if i were in that room, i would askit is really their trump tha. we do need to details on what donald trump said what the executive order. they are describing it as a tougher step.
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we don't have many of the details. there is not a lot of commerce f low to north korea and i am not sure how much to shut down. are the questions we will be listening to hear from the ambassador. joe: you mentioned president trump having a decent day. what about the whole are the qul be listening to hear from the ambassador. unga. a lot of people were curious on how president trump's first appearance would be given everything we know. how did it go? unga. in terms of the interactions with other world leaders, how would you rate it? kevin: i would say he had a decent week but mixed. he didn't have an episode where he pushed a leader out of the way like you did in the g-7. plus there. i think a lot of people actually thought his speech was pretty good. i know some people commented about him using rocket man. even president macron said, we are all talking about kim
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jong-un, talking about rocket man and that got the conversation started. i think he loses points with the iran deal. they hoped to get rusher on the table and france on the other side of the agreement, let's expand on that and he got no traction on that. macron, who has been pretty chummy with trump, came out moments after year's big speech and said if we undo that deal, we are setting back the idea of ramping down on iran's nuclear program. that was a pretty big fail but the optics overall has been pretty good. knows star quality and he has a star quality player in nikki haley. she has been the governor of south carolina. i think she is holding her own at the u.n. and she is a good face for them to put out on american foreign-policy. we will see how she does. julia: i want to step back on what you were saying about iran. eu officials literally were
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infuriated. i want to pick up on what president rouhani said. he talked about rogue newcomers world politics that are unfit to be heard at the united nations. it does not get much punchier than that. eu negotiators on the u.s. side were probably just as upset. that is one that i think people think trump overreached a little bit. there was not a lot of traction for that idea. they had been talking about it for several weeks. secretary of state rex tillerson was talking about different days -- ways to expand the sanctions. nobody was saying they were interested in doing it hennigan it to this week. they got the same no answer and i think that was a failure on trumps part. scarlet: donald trump had some fiery rhetoric -- you know what, nikki haley is taking the podium. a very productive
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and strong week at the u.n. the united states had a very strong presence. the president, vice president, nationalers of the security team and economic team. the united states was out in full force and i think it was extremely productive. when you look at the beginning of the week, we started with u.n. reform. the president and the secretary general rolling out massive reforms for the u.n. what was extraordinary is we had 130 countries that have now signed onto that reform, over two thirds of the general assembly, which is who is going to vote on this in the end. that was a great start to the week. and then you saw the president's address to the general assembly and i think it showed the strength of the united states and also asked the world to come together. and asked all the countries to come together as we fight these rogue regimes, namely north korea and iran. i think what you saw was a lot of countries responded. they were very positive to the
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speech and they appreciated how blunt and honest he was. i think that was the overall theme from the international community this week, how straightforward he was and how refreshing it was as they heard him speak. we also today met with our allies, japan and south korea. a lot to talk about with north korea. we had good conversations with them and the president reassured japan and south korea, that they also talk about strategies going forward for north korea. that was a topic of conversation throughout the week. i think everyone was talking about the destabilizing activities they continue to do around the middle east, whether it is syria, iraq, lebanon, yemen and the list goes on. it is something we will continue to talk about and continue to move forward to make sure we are stopping any of their reckless behavior as well. meeting withted a secretary boris johnson as well as the dutch foreign minister on
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human rights reform. and really talked about the fact it needed to be representative of its name. we had a lot of bad actors on that counsel, the president and the vice president spoke about it. the need to see better quality countries that are on that counsel in order for it to be effective. for the united states to stay on it. if we don't see changes in the human rights council, we will continue to advocate for human rights but we will do it on her own if we have to. ae vice president attended security council meeting yesterday on peacekeeping reforms. we have made great progress in the past several months in terms of reforming peacekeeping. this is going towards a political solution. week. it is transparent, it is accountable but we are also giving the troops the equipment they need and the ability to be trained to do their jobs. smarteroing
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peacekeeping and i think that came together in the peacekeeping reform vote we had yesterday. one of the topics that everyone had to talk about this week, all had an opinion on was burma. as we are dealing with the crisis in bruma and seeing how much migration is taking place from the people going out of burma, every country is concerned. they are concerned the military continues to be aggressive and they are concerned that the government continues to be in denial. i think he will continue to see the international community talk about that. i think you will see them only get more active on that as we go forward. finally today, the security council took a great step forward. i think measure that the international community had been working on a long time. we worked with our british friends on that and it is isis accountability in iraq. when you look at the fact there has been massive mass graves, conduct tof terrible
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women and girls in those areas. whether it is what happened with muslims -- what we have is a part of the u.n. body that will go in and actually collect evidence and make sure it can be used in trial so the victims at actually have their say. do ifleast their families they have lost loved ones. that was a big day for the security council today. with that, there was obviously a lot more. i think the president met with multiple countries. lots were lots of bilats, of talks and planning and productivity. overall, we can say it was a solid week at the u.n. and highly successful. with that, i will answer any questions. reporter: why do you expect this latest round of sanctions to work when an array of sanctions failed in the past towards north korea? amb. haley: this is pretty
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amazing because when you look at the sanctions we have in place, north korea is already feeling it. you can hear about the lines of the gas stations they have and they are having a severe reduction in revenue as the stations are working. this takes it a step further. anyone that deals with north korea, any financial institution that deals with north korea, is going to be punished. i think it is important. if you are going to support north korea, you have to be prepared to be sanctioned as well. reporter: you say the sanctions have been working but north korea has not stopped the nuclear conversation. we always knew the sanctions would not work. what the goal of this ancient was intended to be was to cut revenue so they can do less of the reckless behavior. if they don't have the funding for the ballistic missiles, for the nuclear production, they can do less of it. that is the goal of the sanctions. it does not mean it will necessarily change kim's
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attitudes or beliefs, but it will slow down the production of a nuclear process going forward. reporter: when the president spoke in his speech about totally destroying north korea if forced to defend ourselves or our allies, what exactly did he mean? what circumstances would be totally destroying north korea? amb. haley: we have said multiple times -- the president said it, members of his team said it -- we don't want war. we don't want loss of life. that is the last thing anyone wants. at the same time, we are not going to run scared. if for any reason north korea attacked the united states or our allies, the u.s. will respond, period. what you are seeing now is we continue to go there diplomatic measures, we continue to exhaust everything we have and the key is other countries actually support the sanctions and follow through with them, and they also
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continue to isolate north korea until we can get them to come to the negotiating table. until then, that is just the reality. if they were to strike the u.s., of course we would respond. reporter: you are specifically saying that is if north korea attacked first? amb. haley: we cannot play the scenarios on what will happen but obviously it would take something very serious for the president to have to make a decision to do something back. there is a lot of things between where we are now and that situation that can be done. there are a lot of military options. to president is not going spell out specifically what he is going to do, when he is going to do it or where, but there are many options he has discussed with his national security team that should north korea do anything irresponsible or reckless, that he has to choose from. reporter: a quick one on the sanctions on korea and then i have a question on iran. the administration has said it
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is not aimed at china. you have heard the president say today that china has told in central banks not to do business with north korea. secretary mnuchin called the chinese. you especially talked about how china is really the main financial backer of north korea -- how is this not directed at china? on iran, is there a way to talk about to ramp up pressure like you were talking about, iran destabilizing activities throughout the middle east which a lot of your allies agree on without violating the agreement per se as secretary tillerson said -- is there a way to get allies to rally around more terrorism type and other sanctions while keeping the nuclear provisions in place? amb. haley: on north korea, the sanctions only impact those who continue to do business with north korea. if china does business with
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north korea, yes, it will impact them. if there are countries in africa that do business, it will impact them. it depends on countries that choose to continue -- to continue to support north korea when the new rest of the world is asking them not to. with iran, you have a couple of processes that take place. the president has the decision to make on whether to certify or decertify. that is u.s. law. that has nothing to do with the jcp away or the iran deal. u.s. law requires the president every 90 days to decide whether of iran and other elements the u.n. resolution, which would include ballistic missile testing, arms smuggling, support of terrorism -- those things, it asks the president to look at all of those things. if he still things the deal is in the best interest of the united states, then he
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certifies. if he thinks of the deal, that the situation is not in the best interest of the american public, then he does not certify. at that point, it goes to congress. and he works with congress on how to reshape the situation. the iran deal and u.s. law are two different things. reporter: he could decertify without specifically withdrawing from the deal? amb. haley: that is the option he has. that was the law that came into effect. when i will tell you from a u.s. perspective, what you will hear us very vocal on is the fact that 2331, the resolution in place, what we saw was basically wrapped in with the nuclear deal -- it said it iran did any of these things, it would be a violation. since then, the secretary-general has come out with a report that has said they have violated all those things. their support for terrorism, arms muddling, they continue to
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do ballistic testing and they need to be called out. that is something you will see us do as we go forward to make sure they know that just because we did this nuclear deal, it does not give them a pass on all the other things they are doing. said in your opening remarks that one of the topics that everyone was talking about his burma. the president gave an address to the global u.n. body and he did not mention the word burma at all. did you press him to address verma in his speech? amb. haley: i can tell you he is very concerned about burma. he asked exactly what was going to be done. he has been very involved in the decision-making. i think like he and every leader can tell you we are all scratching our heads over verma -- burma because this all happen in three weeks. almost half a million people
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have left and the tragedy and abuse that has happened is something that a lot of us cannot stomach. if you listen to while the leaders, everybody is trying to figure out who can move the officials in burma -- reporter: he has not spoken publicly about it. amb. haley: he is very concerned about burma. i spoke to the vice president about it. he was speaking to get the president asked him to. reporter: president trump has and indirectly to the vp the last few days -- addressing publicly to do more. amb. haley: we have pressed her and the military. secretary tillerson did call her and discussed the situation with her but also general dunford is calling the head of the military to say we had a relationship with you but this cannot
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continue and we need to know what you are going to do about it. been very vocal on the shortcomings of the iran their behavior, perhaps the strict confines of your job here. where does that come from? are you in your own direct opinion after hearing about iranian behavior here? or through conversations with the president -- talk a little bit about that. amb. haley: the president was very concerned about iran and the deal. i went to learn about it and to find out, to look at the resolutions, the violations. it was just digging deep on the situation of what we found and that is why i gave this speech on the scenario that the president is being faced with on the decisions to be made.
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this situation is not an easy situation by any means because you look at north korea and you look at the factory 25 years we were looking at bad deal after bad deal after bad deal and broken promise, broken promise -- here we are again and we don't want to be dealing with the next north korea. taking ity he is seriously and saying we need to look at every aspect and make sure it truly is in the best interest of the american public. reporter: the foreign minister said any this about of the iran would reduce the likelihood of getting any similar disarming deal with north korea. do you share those concerns that any actions on the iran deal might reduce the possibility of getting a deal with north korea? separately as a point of clarification, do you support a full oil embargo on north korea? amb. haley: let's go back to iran. what i will tell you is a lot of countries will have their opinions on whether the u.s. should stay in the deal or not. those countries do not have --
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they are not saying death to america, death to germany. we are seeing terrorism attacks happening with ties to iran. has never moved the u.s. to care about what other countries say. what does move the country -- president is are we doing everything and the best interest for the american people and that is what you are seeing play out? in terms of comparing iran to north korea, that is what we are doing. we have had so many bad deals with north korea and everybody look the other way and every time they broke that deal, they look the other way. where are we now? they now have a hydrogen bomb, icbms. if we don't do something and we make the same mistakes we made with north korea, he will be dealing with iran that has nuclear weapons and missile technology so that is the concern and that is what we are trying to do. reporter: the president said he has made his decision on iran? amb. haley: no.
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reporter: a separate issue, the venezuela inressed his remarks at the human, and at a meeting with latin american leaders. can you tell us a little bit more about that? venezuela in on venezuelat the human,the oio would be the most effective way of addressing the problem -- is that something the u.s. would consider? amb. haley: i was at the dinner with our latin american friends and i can tell you there is a lot of concern from what is happening in venezuela. they all tried through the oas, when venezuela got away from that -- we try to go to through multiple avenues to get to maduro and let him know what is not acceptable. yes, there were some conversations on what they recommended going forward but i don't think i should share that. i can tell you there is a lot of support in latin america to see venezuela start to respect its
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people and go back to the democracy it is supposed to be. i think everyone one of them was concerned about what is happening now. reporter: any thoughts about an oil embargo on venezuela? iamb. haley: if things don't improve, all of those options are always there. first, it was sanctions and then look and see. reporter: there has been a lot of speculation about your political future and your future within the administration. you're gunning to be secretary of state and trying to -- can you address these comments? amb. haley: there is going to be chatter about things everything i was -- ever since i was a legislator, people were talking about what i am supposed to do. i am trying to do a good job and responsible in my
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job and trying to make sure i am giving of the american people everything i know. i am trying to serve the president the best i can. responsible in my job and trying to makeif peopleo mean something else, that is their issue. >> do you want to be secretary of state? haley: i do not. reporter: how can the u.s. maintain its diplomatic credibility and get a nuclear deal with north korea, when it is willing to consider blowing up, damaging, putting in peril the existing diplomatic deal with iran on its program? doesn't this undermine u.s. credibility? amb. haley: it does not. what it shows is the united states is going to always watch out for its people and that just because there was some agreement that was agreed to, the smartest thing any country can do is go back and look at it and say is it working? not have to much pride to say i signed it, i have to continue to be a cheerleader. is it working? i will ask you do you think that deal is working when iran continues to test ballistic missiles? do youbecause there was some agt
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that was agreed think that deals working with their supporting terrorists everywhere from lebanon, syria to iraq. do you think it is still working when they are smuggling arms and now working with north korea? is that in the best interest of the united states -- i would question that because what we're looking at is a country that says death to america. working with other countries that may also want the same thing, and the president has the responsibility to make sure nothing happens to americans. i think that is what he is trying to do. you.ter: thank from bangladesh. i want to know -- i have two questions on myanmar. the bangladesh prime minister had a conversation with president trump and after the conversation she said that president trump is not willing to resolve this issue. we can understand the u.s. is doing a lot to resolve this issue.
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can you make any comments about the prime minister's remarks? will there be any time given to -- authorities accomodating these numbers. amb. haley: i think the united states has been taken from bang. aback that so much has happened and gone in such a terrible direction in the last three to four weeks. i think you are seeing every member of the national security team is talking about it and every member of the national security team is calling their contacts and counterparts in burma, and making sure we are supporting bangladesh. bangladesh has been unbelievable and taking on these refugees. but at the same time, we have to look at the refugees as they now have no low and there is no way for anyone person to live. the human rights situation is terrible and we want to make sure we are doing all we can. i can tell you it is all hands
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on deck in terms of the national security council trying to look at it and say what steps are we going to take? last question. reporter: after losing ground in syria, the islamic state is looking at libya for a u.n. system to manage the refugee camps and what is the united states brady to do to aback that sopermit the concentration and libya? haley: i think we have made amazing progress in iraq and syria in terms of defeating isis. that is almost has been complete and we are very proud of that. in terms of libya, that is something the national security council is deciding on what our next plans will be. thank you very much. that was nikki haley, u.s. ambassador to the united nations, answering an array of questions ranging from north korea to myanmar to iran and libya.
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she answered she does not want to be secretary of state and focus on her job. let's get some analysis from kevin cirilli who is in washington and has been listening to nikki haley's remarks. kevin, this was kind of a victory lap for the trump administration as nikki haley put kevin cirilli who is in washington it. the president did well and got a lot of credit for his speeches earlier this week. kevin: i am sure everything about those remarks will be carefully dissected, especially saying she does not want to be secretary of state. that aside, let's talk what matters. the immediate term in terms of north korea. the u.n. ambassador very clearly articulating the goal for these sanctions and that is to slow down the rate of speed and rapid nest we have seen from dictator kim jong-un with regards to his
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military ambition. it was not, as some have sanctions and thatsuggested, tot them to completely get rid of -- but to slow them down. that's going to be the measure of success. she did not rule out a military option down the line. joe: what did you make of her ability to put a softer gloss on trump's rhetoric on destroying north korea? kevin: she said it was blonde -- blunt talk. i think she defended the president. she said that she stood behind him and said that she was trying to serve out the administration as best as she could. quite frankly, she said the world appreciated the blunt talk. she did sidestep on the air on deal. scarlet: -- the iran deal.

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