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tv   Bloomberg Markets Balance of Power  Bloomberg  November 8, 2017 1:00pm-2:00pm EST

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of politics and the economy. david: here are the top stories we're watching at this hour. down int trump touches beijing looking for answers on the u.s. trade deficit and north korea. can he win with his chinese counterpart? the gop house bill will add $259 billion more to the federal deficit. we will speak to the former house majority leader and eric cantor at this hour. democratic went in yesterday's given terry will -- inventory elections -- democratic good ubernatorial elections -- tom price joins us on what it means for 2018. david: president trump arrives in china with a lofty agenda. it's a high-stakes visit with everything on the trade deficit to reining in north korea. what should we expect when the
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two most powerful the world meet at the table? join us now is michael mckee. we'll get to that in just a moment, but we heard about the $250 billion with of deals telegraphed well beforehand. from the economic side of things, what do we expect to see from the u.s. president in china? michael: public relations is what you will get out of it. the president goes to beijing without his top economic advisers, gary cohn and steven mnuchin, left back in washington to keep on top of the text debate. he's also going without representation when he goes to these countries. he left south korea and japan without any progress on a trade deal. the situation with china complicated by his desire to do something on north korea. we cannot really pull out the hammer and threaten them with any kind of sanctions law he's trying to do that. look to these deals as the
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signature event of the trip. the chinese like to do that. when they come to washington or u.s. leaders go to beijing, they usually announced a number of contracts that have already been signed by chinese and american companies. shery: i want to talk about the rapport between the leaders of the world's two biggest countries. china's media is now saying that president trump showed videos of his granddaughter singing in chinese. how friendly are the relations now between the two leaders? michael: on a superficial basis, it looks like they get along. ping no mistake that xi jing is looking out for chinese interest above all else and donald trump is looking for american interests above all else. the u.s. would like china to do more to help the u.s. and its economic situation, particularly with trade. the chinese are not looking for the same thing from the united states. there's a little bit of inequality in the relationship
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that may not be reflected when they're looking at pictures of their grandchildren. david: when we ask what the treasury secretary have to see about the visit that the president embarked on. he is not there and with you in washington, d.c. what did he have to say about the economic goals of the trip? michael: he is looking for some kind of reduction in the china trade deficit -- $275 billion so far this year. they would like the chinese to commit to buying more american products and to change some of their trade policies so that they are not so exclusive. that is likely not going to happen. the chinese not interested in doing a deal with the u.s. unless the u.s. makes concessions as well, practically on the sale of sensitive intellectual equipment, things the u.s. blocks for sale because they're worried about the intelligence aspects of it. probably not going to go a whole lot out of it. i did ask him about the u.s. exchange rate. steve mnuchin said the dollar is getting stronger.
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that does hurt our trade deficit a little bit, but it reflects the strength of the u.s. economy. avid: michael mckee, joining us from our washington bureau today. president trump is not the only one making the rounds in asia today. vladimir putin is going to vietnam for the summit. he wrote a bloomberg view article highlighting russia's role in asia's future. he writes "russia has a stake in the future of the asian region and promotes stable growth that the territory to we believe economic integration based on the principles of openness, mutual benefit, and the universal rules of the wto is the primary means of achieving this goal." >> i think in general he is looking east. i once again interviewed him last year in vladivostok just before this.
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for vladimir putin, he is playing on a lot of fronts at the moment. he is playing in syria and doing things in the west and has become a figure in the american political scene, but the long-term political strategy keeps on pushing him back to the east and to russia and toward the kind of possibilities that he can have their. there are two sets of issues really. one is the security and the threat of it. there's a territory and not many people surrounded by territories that don't have a hell of a lot of people. this is the economic potential. the world is growing and he wants to be a part of that. shery: he keeps emphasizing free trade in this article. how much has russia and the eurasian economic union gained from the u.s. retreating from the transpacific partnership? john: i think they have gained a bit. it makes russia seem more involved in that side of the world and it gives them something. russia by many measures is an
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extremely protectionist economy and america is much less so. vitamin putin is trying and would love to get involved in selling oil, but he does not have the industrial sort of goods which would trouble some people. david: he writes about investment in human capital. where is that coming from, his interest in doing that? john: i think he is interested in that. to be fair to putin, this is not a new thing. he goes to the trouble of going to this thing every year. is go back to what putinism about and it's about making russia great again. he measures that territorially, but he also measures that in the sense of how russia is esteemed by other people. i think he senses that he has managed to get russia re-esteemed in the west. he now he's to get it re-esteemed in the east and particularly with china. he sees free trade as a sort of way into that, both as a way to gently brought america and never
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about thing for him to do in his book, but also as a way to imply a comradeship with china particularly. shery: whether it's japan or south korea or china, we never really think about russia as a big player in asia, especially when it comes to geopolitical issues even when the six party nuclear talks were going on. no one actually follow the russian delegate. how big of a player is russia right now when it comes to the geopolitics of asia in northeast asia? john: the answer is they should be. if you look at the map, they have a big chunk of it. they also have lot of us that and a whole variety -- vladivostok and a whole variety of different things. looking through the eyes of vladimir putin, he wants the world to realize that to some extent. at the moment, you have this region where everyone as you correctly pointed out is focusing on what america does and their relationship to japan, china, and india particular. ly. putin is saying look here, i'm
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also part of this and i have an agenda in the region. if people don't listen to me, i will get on with doing things the way i like to do them. david: one line stood out to me in particular. he said we've also shared with our partners services with the public and we suggest starting consultations with the international information security and protection of computer software. it makes one think about the tempest but continues to swirl around washington. john: vladimir putin is many things, but he has a sense of humor. david: who is the audience? john: i think it's interesting that when we did the interview with him last year, there were two request from him. one is that we begin with a question about what he could achieve his conference out there and the second was he wanted to see this translated into chinese , into mandarin, so the chinese would read it. that's an interesting side to putin.
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he is conscious of this and there's a history there. russia wasime when not try to do oil deals with china. he wants to reestablish some degree of equality, which i think he believes he has got a much more equal relationship with the west. he wants to get with the east, but there's also money. david: john, thank you very much as always. shery: and a world away in washington, another kind of political negotiation underway. the house tax bill enters the third day of market while the senate is hinting their version to look very different. we are joined now by former topic and congressman from michigan and chairman of the house ways and means committee, dave camp, currently a senior policy advisor. thank you so much for talking to us. released a taxe reform plan that included lowering the mortgage interest deduction cap. you did not get support back then.
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things look very different right now with the house tax bill including some of those points you made. how much momentum do you think there is for the gop to pull this off? dave: it looks as if the markup this week is going forward on track and members are holding together and rejecting many of the democrat amended ments. they look on track to finish this may be as thursday and it looks good for getting this whole package over the finish line. david: i had a joke with kevin brady, your successor, that he must have pulled a copy of yours out from the desk for her and dusted it off and made a few changes to it. how much of what we are seeing in the house now resembles what you are working on a couple years ago? dave: there are some significant likenesses, obviously the structure of the individual side and to some extent the structure on the international side with moving to a system, but there are significant differences.
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this plan is addressing the concept of dynamic scoring, which was a new thing when i worked on tax reform. they're really taking full advantage of that with the full expensive for five years and they are getting the corporate lay down lower -- rate down lower. if that can hold, there will be some question whether the senate will meet the metrics. at least in the house version, they have some similarities and there are significant differences i will. as well. shery: we are hearing from the cbo that the house bill could add $1.7 trillion to the debt over the next 10 years, significantly more than what we were expecting. does this mean we could see a repeal of the obamacare individual mandate? would that be a good idea? what it help or make it easier for the tax bill to pass? dave: the repeal of the individual mandate looks appealing because they're so much money there, but i think it is unlikely to see it in the final tax bill. obviously the senate has tried
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to adjust health care issues a couple of times. third time is not always a charm so i don't know if we will be seeing that. theirbviously have in budget allowed for a $1.5 trillion in tax release. they're outside the budget for the text window and that will have to be addressed at some point. ins not as critical in issue the house as it is in the senate because of the reconciliation process. the senate will require if they look carefully at that second and third decade. this is an issue and it will have to get it fixed. david: looking at the pace of all this, there is a full speed ahead approach from your republican colleagues on the hill. now that you are on the other side of it, how some pathetic are you to the argument that we don't know what is in it? maybe the best course of action is not to push this through as fast as we can to get it done by thanksgiving or the end of the year. dave: i know that they want to get on this expedited track. there's obviously going to be changes in the senate that they're going to be looking at and they feel like the window could close on the midterms sooner rather than later.
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i think there's an effort, but you're right. this is expedited. some of these changes we have our be seen from chairman's amendments that may be went further than expected to and we will see some more by the end of this week. this is very much a work in progress, but it is on fast track. shery: if you are still chair of the ways and means committee, what would you target as potential revenue raisers? dave: oh gosh. [laughter] it's always a dangerous area to talk about on-the-fly, but they've got a big window here with a $1.5 trillion that i wish atad that amount of revenue my disposal when i was working on the legislation. with dynamic scoring, i think they will meet the revenue target. it will be about adjusting and making sure that there are not unintended consequences for making some of these changes while they are in the legislative process and in the market. -- that isave camp, dave camp based in washington. shery: we are now seeing u.s.
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stocks turning slightly marginally positive in the afternoon. let's get julie hyman with the latest. julie: stocks really little changed and they have been bouncing between gains and losses. one group that is moving is the banks. all 17 members of the s&p 500 bank index are lower, including the three senior banks of bank of america, jp morgan, and wells fargo. financials are the second worst performing sector today and part of it has to do with what we have been seeing with the yield curve. we have the two to 10 spread and we have the 10 year yield -- sixng for the sticks straight session now and you see the flattening of the twos and the tens, which also has been putting pressure on banks and also raises questions about people's perceptions of what will happen with economic growth. that is hurting the banks. also potentially are the prospects for this tax legislation that you guys have been discussing.
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here in the bloomberg, you can track the various proxies for tax reform at g #btv 4046. andhave the s&p and yellow then you have the russell 2000 and blue, which has been rolling over to some degree really since the beginning of october. it is trading kind of sideways. finally an index tracking companies with a high take tax rate has also been declining. shery: julie hyman, thank you. david: coming up, eric cantor joins us to give us his thoughts on what the democratic victory in virginia means for next year's midterms and for tax reform. this is bloomberg. ♪
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shery: welcome back.
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this is "bloomberg markets: balance of power." i am shery ahn. republicans tried to overhaul the tax code are facing new headwinds today, including a new $74 billion hole in their plan and political fallout from gop losses in yesterday state and local elections. david gura is with a special guest who has some insight on the feasibility of a major tax overhaul and what is next for the gop. david: i'm here with eric cantor . you are in virginia as well. we had this election yesterday and i remember people saying that was a moment when we saw virginia changing. is what we saw last night a continuation of that with a different change entirely? how do you process from a cultural perspective what's going on in virginia? eric: everybody is searching for the signals and what happened last night and virginia to try to apply them and project them out to the midterm congressional elections. before you try to do that, i think it's fair to note that there are deeper structural issues in the virginia
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republican a party that needs to be addressed. our party has not won statewide since 2009. that is quite a long time, eight years since we have actually won. although there is one exception in recent memory, we are countercyclical. country goes republican in the presence of, we will go democratic and vice versa. all that needs to be taken into account and the fact that donald trump did not win virginia. it was the only southern state to go for hillary clinton. and it wasn't even close. she took virginia by over five points. taking all that together, last night's results certainly were much steeper and much more impactful down ballot. the virginia house of delegates now hangs in the balance with 50-50 currently where it was a 66 or 67 votes out of 100 republican majority. again, there's a lot of things that need to be done.
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one of the things that bothers me about going forward is ralph northam, the democrat who won for governor, actually 150% of the college-educated white votes. he frankly took the women's vote by 22 points. that is core republican conservative, fiscal conservative, independent conservatives that the party should be mindful of going forward. david: let me ask you if we make a mistake looking at virginia as one entity. there's a lot of talk about the state being two entities. is it a very complex state? eric: first of all, it's a very dynamic state. we have grown and we have a fairly healthy economy compared to the rest. i know we rank very high and terms of the ability to do business in our state. it is let's say 27% population wise up in northern virginia. some say that is the deep state. there's a lot of federal workers .here c
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downstate where i'm from this heavy financial interest in the richmond area and a lot of reliance and the heft and area with the naval bases and others. there's that component as well. 20% of the state's population is african american. as you know, the black vote in this country typically goes democratic. it has always been a very tricky path for a republican in terms of trying to win statewide. presidentialce allstat standpoint, we used to be all republican all the time from the goldwater race to barack obama. david: let me ask you lastly something about the president tweeted out about the results of this race. he said ed glitzy work hard -- lepsie worked hard, but he did not embrace me. what does embracing or aligning
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oneself with donald trump me know? eric: it's interesting if you juxtapose that tweet with what steve bannon said two weeks ago with him saying that he had embraced trump's agenda. and the closing weeks of the campaign, both sides were really negative. i believe our party needs to rally around an optimistic view of the future and what it means we will do for the future. his campaign was make america great again. it was an optimistic message. unfortunately there were some very negative ads on both sides souring people on the whole situation even further. and the ads tended to be a little divisive. i do not like to see the party infighting that occurred immediately after the announcement of his loss. people in the future candidate for our senatorial race now saying that ed was the wrong nominee. e need ed republicans,
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donald trump republicans, northern virginia, southern virginia, all right public and. i'm hoping we can learn from this to be more unified. david: we were talking about this moment in particular when it comes to tax reform. does it feel different now than several years ago when there was a conversation about tax reform on capitol hill? eric: right now there's unified republican control and you should be able to get this done. health care, cutting taxes is in the dna of the republican party. as dave was saying earlier spot, there is a challenge because the decision was made rightfully so that the democrats are not going to provide any votes until republicans proved to have got a majority. with that, there had to be the acceptance of that would go through this process and the senate which lowers the voting threshold from 60 to 51, the reconciliation process. that is what complicated. we now see it's all about trying to meet the $1.5 trillion tax
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cuts in the first 10 years. and then ushering in year 11 that you don't aggravate the budget deficit going forward the next 10 years. that is really difficult and that is where will the senate comes in steps up and we will see the unveiling of that in the next days. david: the house bill has to be married together. who will you be watching as this unfolds? a good a to broker quick arrangement of these two bills. eric: it's up to the white house. i recall when i was there that we relied very heavily when we had george bush in the white house for him to come in. he got in the details of the bill and understood where members were and were very effective at compelling votes. we're not seen that yet from president trump. he does not come from that world . we need to see some of that real attention to detail and compelling members to bring them
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along, not just issuing a tweet threatening members. that does not work in washington and it has proven not to work. david: how hard is it to do what chairman kevin brady is trying to do -- that is bolted doors to the hearing room, keep all the lobbyists and special interests at day and get this done? how hard is this to work exclusive of all that noise? eric: they have been working on this for a long time. as you rightfully interviewed dave camp, i was chairman and i was leader and dave issued his white paper on what corporate and individual tax reforms should look like. the members of the ways and means committee know the stuff. they will get the markup done. i think the house and paul ryan and act with kevin mccarthy other leadership to make sure the votes are there. the real test comes in the senate. david: eric, think very much. eric cantor joining me on set here in new york. shery: great interview, david. coming up on the show, we speak to the former rnc chair and
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former mississippi governor haley barbour about the future of the republican party after those gop losses in state and local elections we saw yesterday. we will dissect that next. this is bloomberg. ♪
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♪ david: let's start with
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headlines from the first word news. mark crumpton has more. mark: russian president vladimir says the forum is something russia volumes because if the opportunity to inform all participants to engage in discussions that gordon positions on a variety of economic, social, environmental and cultural issues. togetherident acting we will find solutions to the challenge of supporting the study, balanced and harmonious growth of our shared region and securing its prosperity." "russia is ready for such a collaborative effort." the russian president wri ting for bloomberg view. the alliance is expanding its command structure for the first time since world war ii. secretary-general stoltenberg
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called nate out most successful military alliance in the world because, "we have been able to adapt." >> a comprehensive approach to our security, ready at all times to respond to any threat from any direction. on land, at sea, in the air and in cyberspace. that nato allies stations around 4000 troops in baltic states in poland to reassure them the alliance stands ready to defend their borders against neighboring russia. the move came the response to russia's annexation of ukraine's crimean peninsula in 2014. tv ratings for the national football league are down another year. that's in addition to the 8% drop last year for america's most popular sport. david westin asked roger goodell today if the national and the controversy is driving the decline. >> i don't think there is a silver bullet.
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i don't think there is one thing we focus on. we look at it as everything and we don't dismiss anything. we look to see if that could be a factor. i think the big issue is the changing media landscape, and the pace of change is so rapid here. mark: he says he would like to see players stand, but believes they are not trying to disrespect the flag. he says the players are talking about improving their communities. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. shery: thank you. what is the fate of the republican agenda after yesterday's sweeping election rebuke of president trump and his party? we asked haley barbour, former chairman of the republican national committee and the former governor of mississippi. he is joining us from washington. thank you for joining us. for agenda was a key race yesterday.
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this was supposed to be a blueprint for future republican campaign. what went wrong? haley: it is a difficult state. president trump is not popular in the state, particularly in areas that generally split their vote, like the washington suburbs. they voted very heavily for the democrats. republicans were not able to make it up in the rest of the state. of virginia is becoming a more washington, d c oriented electorate. that electorate is growing, more liberal. as aon't want to run i small government republican in washington. david: are you still think about it as one-party, or do you see these beginning to spread apart? d worried worry about the long-term integrity of the grandal party? david: our -- haley: ours is a big party.
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there are lots of people they don't agree on everything. i used to work for ronald reagan. i didn't agree with ronald reagan on everything. my wife doesn't agree with me on everything, but that is part of the two-party system. we have a big party and i frankly think the divisions philosophically in our party are quite a bit smaller than the divisions in the democratic already, which has -- democratic party, which is not the biggest lurch to the left in modern political history. i want to ask you about the role president trump is playing in these divisions. at the list the cap -- ed gillespie gets a noticeable difference. president trump tweeting that he worked hard but did not embrace me or what i stand for. don't forget, republicans won four out of four house seats. win.ll continue to
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how challenging will it be for gop candidates next year trying basepeal to votes, trump's voters and not alienating centrist republicans? haley: there are large number as a that did that in 2016. they will be able to do that in 2018. ist really is important republicans get things done. that is important for donald trump. the american people want to see accomplishment, tax reform. tax reform the next the economy grow faster than the miniscule 2% growth we had under the obama administration. they want to see real growth. they want to see health care reform. they know the obamacare system has been a bad deal for millions and millions of americans. yet it has caused unbelievable amounts of money. the best thing republicans can do is get the job done. i think tax reform is the obvious ways.
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somebody -- obvious place. somebody asked me if i think republicans will work harder on tax reform. i told him single johnson's that nothing so concentrates the mind as the site of the gallows. yes, i think people will be working hard. david: the president once this to be a christmas gift to the american people. if it does not show up in december, what does that mean for the republican party? haley: all are public and and people who know tax reform want to get that done as fast as possible. i was in the reagan white house in 1985 in 1986, the last time the country did a tax reform. it is complicated. it is contentious, and the complexities arrive often because there are winners and losers. this is not something that just gets done overnight. unlike 1985, today there are no democrats willing to be for tax
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reform. when president reagan announced his sack reform package in the spring of 1984, danny rostenkowski, chairman of the ways and means committee for the democrats in the house went on tv afterwards with a response and said we are for tax reform, too. we want to see good tax reform. we don't agree with the president on everything but we will work with him. it was very many democrats that wanted and understood the country needed tax reform. it turned out to be a great thing for the country. great for the economy. way up until the clinton administration. shery: three democratic senators met with gary cohn and mark short yesterday. president trump calling in from seoul. is this about optics or are they really hoping to get some democratic votes here? haley: i'm sure they want to try to get democratic votes, not just on this but other things.
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of course it is feasible. you look at some of like joe manchin, with whom i served as governor. he is not a left-wing progressive or whatever the socialist party wants to call itself these days. senator sanders called it what he thought it was, socialist. joe manchin does not things like that. he is from a fairly conservative state. once heavily democratic but no more. he is a moderate, middle-of-the-road, somebody that wants to get something done. i don't know the other two but they certainly represent states, indiana and north dakota, that are not left-wing states. they are not like washington, d.c. for that matter. david: give us a dose of realism. the chairman of the house ways and means committee says he intensity this without interference from lobbyists. you are a longtime lobbyist
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yourself. aren't lobbyist able to make their voices known in the process? how problematic if they do not have as easy access to other pieces of legislation? haley: lobbyists are only as good as the accurate information that they deliver that members can trust that what they are being told is accurate. ifn the member can decide that is the policy i want to follow or follow some of the policy. the biggest thing for a lobbyist is when they call on people, staffers, members of congress or the administration, tell the truth, caliphate was on the other side and why and conduct yourself in a way you will be invited back because the people you lobbied think you gave them good information was helpful. shery: thank you so much for your time today. haley barbour, former rnc chairman and governor of mississippi. david: what a difference democrats notich there for -- what a difference a year makes.
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democrats notch their first victories in the trump era. this is bloomberg. ♪
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♪ welcome back to "bloomberg markets: balance of power." shery: time for the bloomberg business flash. former yahoo! ceo marissa arer's said tech companies trying to get it i the source of two massive data breaches under her watch. she testified today at his senate committee hearings. >> to this day,, as i understand it we have not been able to identify the intrusion that led to the theft. we have received files from law
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enforcement that contain yahoo! data. we verified it came from yahoo!. we don't exactly understand how was perpetrated. shery: verizon acquired most of yahoo! in june, the same month she stepped down. the data breach affected all 3 billion of yahoo!'s accounts. the ceo a christian dior is stepping down. he will end at almost 20 year run as head of one of the world's top fashion houses. .ior is owned by lvmh fenill be replaced of the di brand. david: and federal further -- anti-trump furver translated in the votes in virginia yesterday. delivering catharsis the party to create since last november, one year after trump's victory.
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we are joined by tom perez from his office in washington, d.c. what accounts for these victories? we heard about turnout in virginia in particular. what did the dnc do right in the cycle? and we were organized competing and every zip code in virginia, new jersey and all the places where we had races last night. in virginia there were 88 democrats running for the house of delegates. in past cycles there have been 45 seat. candidatestacular and we led with our values. you saw the unity in virginia, the unity in new jersey and elsewhere. we had a unity of purpose. we talked about issues people cared about. health care is huge in these areas. they see what donald trump is doing to their health care and they want leaders can be proud of. northam,at ralph
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he has been a healer in his career as a physician. a distinguished career of military service. phil murphy, humble roots, never forgot really came from. both are looking out for the folks that need our help. that is what it is all about. lead with your values and organize everywhere. that is you succeed. shery: you talked about president trump. will that be the democratic playbook for next year's election? when you equal gop candidates with president trump? larry: donald trump is been a disruptive fourth -- tom: donald trump is been a disruptive force in american politics. you look at what they had done on health care. he saw the race in virginia. there was all the dog whistle politics at the end of that campaign. it was a steve bannon special. ed gillespie, donald trump, steve bannon, they are all the same. people want an america in which
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everybody has the opportunity to succeed. you see this election was undeniably repudiation of what donald trump stands for. it was undeniably repudiation of the culture of corruption we see in washington. great same time, we had candidates talking about the issues people care about. when we do that i think we do really well. democrats everywhere were focused on improving people's's lives, making sure they had good jobs, the kids a quality education. those of the things that get people out of bed and those of the things we were fighting or. david: a book came out a couple of days ago. of you are writing about what you think about the book by donna brazil? how large the that loom as you go forward? tom: i was out on the campaign stop all this weekend in virginia. 700 miles. not one person asked me about that. many people were asking me about health care.
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the were asking me about educational opportunities for their kids. the educational opportunities for their kids. they were talking about good jobs. terry mcauliffe hundred and eight perio -- a period 3.7% unemployment in virginia. clear focus of the future. we are informed by the past and the mistakes of the past, but we are focused on electing democrats up and down the ticket. that is what happened yesterday. that is what we have to take the scale next year. shery: we just had two more house republicans announcing retirement in new jersey and taxes. -- texas. does this give you confidence you can take back the house next year? tom: absolutely. i would add the senate to that. the last time the democrats won both new jersey and virginia was 2005. youid so because, again,
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had a very unpopular president pursuing a very unpopular agenda with a very unpopular right-wing congress amid a culture of corruption among all of them. but we saw in 2006 was the republicans imploded in the house of representatives and the democrats swept up our. family got barack obama elected two years later. there has been such chronic overreach by this president. this notion the affordable care act was a disaster. there have been record enrollments. we can always improve it, by the notion you will take it away from people -- the number one issue for virginia voters was health care. they went overwhelmingly for dr. rolf northam. thecontinue to ignore issues and concerns of the american people at your peril. right now you see republicans debating a tax bill that is a massive giveaway to wealthy people. they are trying to project it as
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a really good thing for middle-class families. there are so many middle-class families that are going to end up paying more, and the undeniable big winner in thi are very wealthy people that don't need a tax cut. david: tom perez, thank you for your time. shery: coming up on the show today marks one year since donald trump was elected president. what has changed and what is still business as usual in washington, next. this is bloomberg. ♪
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♪ david: donald trump elected a year ago president of united states. on here with megan murphy. it was a marathon.
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he was some highlights from that night's broadcast. >> the gop will retain control of the house of representatives. >> a lot of people on the edge of their seats right now. >> everybody take a deep breath. >> record lows against the dollar, donald trump will win ohio. >> this could be a good night for america. >> donald trump has won the state of florida. >> this is a dramatic, stunning event. >> that is what it felt like in london the morning after brexit. points. down 862 >> pennsylvania really just wiped away hillary clinton's chances. >> we can wait a little longer, can't we? wisconsin,rump wins surpassing the number of votes he will need to take the presidency. us toay it is time for come together asone united
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people. joining us now to discuss the past year is making murphy of bloomberg businessweek. how far we have come? to pledged unity and we have not seen him or others follow through with that. megan: no. it is so interesting to be sitting in the seat this morning as opposed to where we were a year ago on the back of really historic wins last night. the governors and the further down ballot. there will be a lot that will be cursed through if this is the democrat fight back moment. the inability for them to really get anything done, resistance to so many administration proposals have galvanized a new voter race. i'm looking at white middle-class women and the youth that turned out. it is fascinating. shery: you are here last year. i was in mexico watching the
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peso go up and down. since then president trump is not softened his stance on trade with mexico. he is right now in china. how has his foreign-policy shaped up? megan: is reflective of the broader agenda, which is going in every which direction. when we look at this trip and what they have been talking about with trade and movement by the administration to strike bilateral style deals, japan, china, south korea, and inability to get china to yield. north korean nuclear armament has continued. a lot of people would say he has been lucky we have not seen a crisis of deeper, broader dimensions. we see what is going on in saudi arabia, in the middle east more generally. they have focused on economic and business terms. you talk about mexico and the peso. it plunged. on trade the messaging is
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unclear on nafta, about where we are going in our relationship with mexico. you see it in the tax bill fight as well. i think he has been more solid, stronger and more consistent on domestic policy. david: i looked at the speech he gave that night or early that morning and he said we will rebuild infrastructure. that is the first think he mentioned. how did that fall to the wayside so quickly? megan: his advisor was discussing the this morning. we lived of world would in if he launched popular? this will be what is talked about from last night and moving forward into 2018. it is health care. when you look at the voting and maine voting to expand medicaid by such huge amounts, health care in north virginia and how that shaped turnout, the decision to tackle health care first has proven to be a real
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problem for his presidency. divisions ine his own party and it led to a lot of the turnout last night. that lightning rod of him switching from infrastructure is a big one. david:. thank you for joining us in new york shery: time for the balance of power newsletter. / coming up next, an exclusive corvette.with michael that is at 2:00 in new york. this is bloomberg. ♪
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♪ scarlet: i'm scarlet fu. julia" welcome to bloomberg markets.
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♪ we are live in bloomberg world headquarters over the next hour. here other top stories we're covering from around the world. president trump touches down in china. wilbur ross announces $9 billion worth of deals. will we see progress with north korea? senate republicans announced a delay in the rollout of their tax plan. we speak with congresswoman from tennessee. michael corbat joins us live from the year ahead summit. u.s. markets close in about two hours. let's get a check and help the stocks are faring with julie hyman. a record high? julie: it is. i better double check on this s&p and nasdaq. definitely for the dow. it managed a small gain yesterday. consumer staples are leading the way in the s&p 500.


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