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tv   Bloomberg Markets Balance of Power  Bloomberg  March 29, 2018 12:00pm-1:00pm EDT

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services. the mix markets much more efficient. in the late stage of a market cycle and you have the federal reserve raising interest rates
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and get the budget deficit growing. what does that tell us? >> we have one of the few fits and central banks do that do not hedge balance, and other participants me to step up and tell us that, they do need to hedge, so that is what we think we are very strongly suited in order to help mitigate that risk from participants it and when you look at the crash platforms is no different. people trade in futures come from entry in nature and but that hedge that. thelet: we talk about benefits you have in treasuries, is there risk as well to this dominance? terry: i would say absolutely not. and theentage of trade treasury market was around 44% a few years back. we are up at 90% of the trade
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today in the u.s. treasury market so we mitigated -- or migrated a bunch of the business to our platform today. is a efficient platform and continues to go there. you know as well as i do that liquidity likes to go to a centralized place where it is most efficient and that is what our futures contracts has done. when you look at the nexus platform will keep the same structure we have with their participants, but you put out a tough from together or the trade both cash and futures. we think it is attractive for participants. scarlet: going back to the cross-border issue, with represent a challenge on the regulatory front? will tell you -- i don't bring deals to my board, the last one i bought was in 2008 when we acquired the new york exchange. before that was the chicago exchange and thousand seven. sure we are
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professionally advised by outside and inside counsel and we are confident we have complementary products to put together that will benefit the clients. will wait and go through the processes, but we are hoping this will go through the process is and will be able to close the fourth quarter of this year. scarlet: in other words you have done your due diligence. and have a set it opens the door for a rival bid to come in, do you expect a rival bid? terry: it is hard for me to anticipate or predict if there will be a rival bid. youink what i outlined for be compelling to users. it is going to be difficult for others to come in here. we have not heard any rumblings yet, but i am sure people are waiting to see the price. there was speculation on what the price may or may not be in the last couple of days, but will have to wait and see. ceo is that he will
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join the board of directors and serve as a special advisor. what does that mean and practical terms? how long will he be there for the transaction -- transition and integration? terry: michael is important to the cme group, when i met with michael i told him it was important for him to stay with the organization and to the an investor and help integrate these businesses. no one knows them better, and he is committed to do so and he has he is taking 50% in cash and 50% in stock and he anticipates holding his stock and was to be a very happy cme shareholder. that is a big part of it. i am excited to have michael as part of it. going forward, he has a lot of relationships, especially on the broker tech and optimization businesses. he will be a big part of this. thatet: before we go, in
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context of your career, this is a huge deal in the exchange world and people forget that you started at the bottom, you were a part-time bartender. had you start -- how did you start trading? terry: i was, i started as a runner on the exchange and i was tending bar and make a gentleman who thought i would be good in this business. was making $56 a week, and i never left. i started my trading career in 1981 and went into the progression of a mutual company and mutual exchange. i was fortunate to become chairman of the company in 2002, and the rest is history and i'm sitting here talking to you today. that is the fast-forward, like tv version. [laughter] duffy, thank you so much.
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kevin, back to you. kevin: i love that story. coming up, big tex is becoming public enemy number one on capitol hill. looking towmakers learn? this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power". kevin: this check on first world news with mark crumpton. wilbur ross says there's too much hysteria among investors of the risks to the economy because of president trump's trade policy. secretary ross told bloomberg
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television that higher tariffs will have a trivial affect on the nations rate of inflation. >> i would recommend investors act rationally. by that what i mean is judge this administration by the actual performance that it creates. don't judge it by some sort of hallucination about some bogeyman out there who could be a problem. the trump administration is that the proposed a list of chinese products to be hit by tariffs. that the president announced duties on $50 billion worth of chinese goods to punish beijing for what washington sees as widespread violations of the american intellectual properties. britain is scheduled to officially leave the european union and prime minister theresa may will turn the country to gauge the mood of the nation, but she may not like what she hears. a bloomberg investigation that
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included 133 interviews of britons found that divisions have hardened sza 2016 referendum between those who want to stay in the eu and those who voted to leave. former french president nicolas sarkozy will stand trial on charges of corruption and meddling. sarkozy faces trial and is accused of trying to illegally obtain information from a judge about an investigation targeting him. sarkozy has denied the accusations. kim jong-un could become the first north korean leader in history to enter south korea and he steps across the heavily fortified order for a summit with president moon. april 27 meeting on the southern side of the demilitarized zone will be the first between the leaders of two nations in 11 years. leaders of the two countries which are still technically at war have only met twice since the peninsula was divided in 1948.
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global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. mark crumpton. this is bloomberg. mr. zuckerberg host to washington. washington. he said he is willing to testify if he was the right person, and now it looks like he thinks he is because lawmakers insisted he is the person. zuckerberg is expected to appear before the house committee, and joining us is a member of that committee, congressman leonard lance. it is good to see you in our office and not chasing after you. [laughter] that start with mark zuckerberg. what do you want to know with him? rep. lance: he is the face of ifebook -- we want to know as many as 50 million americans at the privacy violated by his company. kevin: do you think he gets it?
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get facebook that it -- that this is a conversation washington is going to have for them -- for several years to come? ap. lance: i hope so and american people want answers to these questions. not only here in america, the british parliament wants answers as well and this goes the on the united states. ande was a consent decree the thousand 11 and want to know if that was in any way violated. shery: does that go far beyond that? that decree was part of a settlement deal with federal agencies because they violated a trust of customers. this is a repeated offense. shouldn't go further than that with more regulations? rep. lance: we want to get to the bottom of what facebook did mr. zuckerberg is the person to answer questions. the chairman of our committee
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and the ranking member have invited mr. zuckerberg to testify and we hope he will do so. theysenate and the commerce committee has made a similar request and am hopeful he will come and testify as soon as possible. shery: he didn't appear for testimonies when you are investigating the russian meddling into the elections. will your questioning go as far? rep. lance: the questioning will go as far as the facts suggest and that is not off the table. we hope mr. zuckerberg will come before us on capitol hill in a voluntary fashion. can is our aim, but we virtually have subpoenas if necessary. i am not suggesting at this moment it is necessary. kevin: will you be forced to subpoena him if he is to refuse? rep. lance: that is up to the
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leadership of the committee but i would favor such action, but i am not suggesting we are there. the 2020, and in particular the question on immigration. your thoughts? rep. lance: i wouldn't put a question on the senses if you are a citizen or not. is the cap everybody in america and is a constitutional dimension. has been in the constitution from the beginning and i want a accurate count as to who is here. shery: also in the news is president trump in ohio talking about infrastructure. you voted on the omnibus bill, and that did not include funding for the gateway tunnel project. why did you vote for it? another 3: there is billion where would be in the running for the great way -- gateway tunnel that benefits the entire east coast. in my judgment the entire nation
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-- not just new york and new jersey. i was pleased there was funding in the bill and i will fight for more funding. shery: these are policy issues we are talking about and we had carter smith right castillo in earlier this week and he said it is hard to talk about policies and agenda when we have so many distractions. we saw a new nominee for the a secretary. is that going to distract again until november? hope we cani concentrate on policy, yet the questions about policy and brent costello is a terrific member and i'm psyched to see he has chosen not to run for reelection. i am sure he will be a participant in the zuckerberg matter, but i think the american people cry out for a discussion on policy on capitol hill. kevin: i agree. congressman leonard lance. shery: will hear from the
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interview with wilbur ross and what he says about tariffs against china. this is bloomberg. ♪
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shery: will come back. trade tensions with china and the u.s. greenback and wilbur ross joined earlier. >> the purpose of the whole thing is to try to curve the problems we found with intellectual property rights. technology transfers, forced licensing,s, forced cybersecurity reaches. all sorts of problems designed to penetrate and initiate the intellectual property rights of american tech companies. some would look at this
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and say that a lot of technology sold within china -- actually the incoming goods is what the crackdown on what we have seen. >> i don't think that is quite true, there are codes and things embedded within high-tech situations that is not that easy to get from the outside or by designing backward from the finished product. if there were, the chinese would be requiring all the massive technology licensing and technology transfers that they do. the fact they are doing that speaks for itself. what is the message we are sending to china? is the u.s. preparing for a possible trade war or is it, we are ratcheting up pressure but we want to bring you to the table to make a deal? >> it is something quite
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different than that. in terms of steel and aluminum tariffs, the message is we are trying to protect our present day products. in terms of intellectual property, the message is we're trying to protect the future, because the intellectual property of today is the important finished product of tomorrow. the message is very straightforward. we don't mind competition that is fair and square, regardless of where it comes from. we do mind competition that is based on violations of fundamental intellectual property rights. to give you a feeling of how important this is -- the u.s. patent and trademark office, which is also part of the department of commerce -- sometime this summer will issue its 10 millionth patent. there is no country on earth that has ever issued anything
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remotely like 10 million patents. that is the key to a lot of america's success -- technological leadership. we cannot afford to have that stolen or strong-armed away from us. and i feelderstand the strong arm and aggression is coming from the u.s. to take action. >> that is not true, we are not strong-arming, we are finally coming to our own defense against abuses the have been going on for years and years. shery: that was wilbur ross. up next, the countdown, when you're from today the u.k. exit from the eu. this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. kevin: this is bloomberg markets. the dow is gaining more
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than 250 points, up 1%. u.s. stocks are rallying today, on the last trading day of the week, ahead of the holiday week and the last trading day of the corridor. the s&p 500 is being led higher by tech and energy. take a look at bank stocks. amazon continues to fall for a third consecutive session, down more than 1%. president trump tweaking they pay little to no taxes. tweeting they pay little to no taxes. facebook is gaining ground up 4%. he settings for the company after that data privacy scandal. netflix now up .1%. kevin: let's check on the headlines 41st word news. pick-and-rolls are being held in russia for some of the victims of sunday's shopping rals are being held
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in russia for some victims of sunday's shopping mall fire. survivors and emergency exits were locked. vladimir putin has promised a thorough investigation. human rights advocates are asking for a thorough probe into a fire that left 68 people dead at a police station jail. there have been warnings for some time about deteriorating conditions in the nation's jails. many have been held for months at police station jails when they should only be contained for a few days. the sole surviving suspect in the 2015 terror attack in paris learn his fate on april 23. 20 16on trial for a march police shootout, four months after the paris attacks that killed 130 people. seekingprosecutors are
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20 year prison sentences for him and an accomplice. says she is excited to be packed in pakistan for the first time since she was shot in 20 12 by taliban militants, who are angered by her championing of educating girls during a meeting with the pakistani prime saidter today -- malala she would continue her campaign. she was only 14 and already known for her activism when she was shot. global news 24 hours a day, powered by more than 2,700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. think you'll. the countdown to brexit is on, one year from today, u.k. is scheduled to leave the european union. many points of the divorce still are get to be defined. with what is next, is the bloomberg contributing editor and dartmouth college professor of economics and a former
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monetary policy committee member at the bank of england. there is a lot to say about yield. >> [laughter] great having you with us. we have to talk about this brexit transition. the biggest problem seems to be ireland. where are we in the irish border? >> it is a puzzle. it is crucial. senses, ireland was a major issue. rexiteers said, we will work it out. irelandite clear that is a major issue. i have spent a lot of time, traveling back and forth between belfast and dublin. it is like driving between new york and connecticut. there is no border, there is nothing. brexit, therehard
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will have to be a hard border there. no one in the north or the south wants it. you will have a wall. our english soldiers going to sit there? it makes no sense. into the government is propped up by the protestants that have a particular view about this. i don't think it is possible there will be a hard border in ireland. a hard brexit is almost inconceivable. it is not something that is likely to happen. the people don't want it. that has been a major problem for those who chose to go down the road of hard brexit, and are now being forced to basically try and make it, as little change from now as possible. i think ireland always was going to be crucial. i have talked to bloomberg about this many times. prevents thetially
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craziness of a hard brexit. the reason is that people can flow into ireland, people living in poland can come to ireland, enes kanter on a boat and go to scotland. that is how it is going to remain. to turn to trade. the european union and the u.k., this has been ongoing so far. who is winning? the european union has been winning. they have been completely credible. 27 countries voting together take a menucan't and pick and choose what you like. it is a fixed price. if you want to play, they have to pay. that is the first thing. the negotiator keeps saying the
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brits have not produced anything credible, they have not produced a credible plan. our they have talked about is having your cake and eating it. the reality for the european union 27, if you make it so wonderful for the united kingdom to leave, the danger will be other countries will want to leave as well. n mugged byhave bee reality. there is probably something like a 50 billion pound divorce bill. that is crucial. is, the economy has not been doing well. people have been struggling. europe has been growing pretty fast. that is the comparison. to, as all coming down cliff edge. in the united states,
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when i talked to republicans, they were trying to figure out how this harley davidson or boeing ceo went over the workers that type of populist rhetoric. how do you win over the die-hard s who are saying, we want to leave? david: the reality that there lot of itrds -- a was a protest vote saying, i am not happy about how things are going. but i don't think this is actually going to happen. there is a large group of people who say, i want this to happen, but it is also very localized. 1 -- london hugely voted to remain, so did ireland and northern scotland and all the big cities. there is a strong group wants it. there is a reality check. it was a pretty narrow win, as
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it was in the united states. people are being given a choice, do you want this thing where the costs are huge? people, if you have this, you're living standard is going to be impacted. but majority of people today say they would vote to remain. a blog of them are looking for a second referendum. it is not over until it is over. we have to talk about president trump's steel and aluminum terrorists. what does that signal for the future u.s.-u.k. trade deal after brexit? with the allies of the european union, they put tariffs
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on harley davidson. they have been pushed out of the way and saying, it is not meant to cover australia and canada and the european union. the weight has been treated in wantnited kingdom, if you to brexit and then afterwards, the idea that it would be easy to do a deal with america has been put to the wayside. that is how it has been treated. the united kingdom does not feel that special anymore. kevin: thank you. coming up, president trump is on his way to ohio without his infrastructure plan. we will talk with the former transportation secretary, next. this is bloomberg. ♪
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shery: this is "bloomberg markets: balance of power" president trump is on his way to ohio, where he will make a pitch for his infrastructure plan. the formere welcome u.s. transportation secretary, r aylahood. looking forward to hearing from president trump? i have last count of how many times they have been talking about infrastructure in this administration. ray: what everyone is looking for -- is the "pay for." winners have killed
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states like illinois, michigan, wisconsin. they have left huge potholes, crumbling bridges. the issue is not what to fix, the issue was how to pay for it. originallystration were talking about utilizing the state and local government to pay for it. they simply do not have the money. infrastructure has traditionally been paid for by the national government. been trying to promote the idea of raising a gas tax. gives states the resources. they don't have them. it is going to take the national government to pass the kind of resources on to the states if we are going to fix our infrastructure. kevin: i hear you. is a nonstarter with a certain faction of the republican party to talk about
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an infrastructure bank. there has to be some public-private partnership with regards of how to pay for it. attract outside investment, as well as protecting international ?nvestment for the state go ra : ray: i am a big believer in public-private partnerships. money usingpublic public-private partnerships. that does not provide the amount of money that is really needed. are 60,000 structurally deficient bridges in america. the interstate is crumbling. we need a big pot of money coming from washington dc. other countries are building roads, bridges, rail, because the national government in china, asia, europe, are making investments.
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without a huge influx of money from the national government. i think it could happen. president trump could go to ohio today and say, we need to create an infrastructure bank, help fund public-private partnerships, create three or four pots of money. he provides that initiative, boom. congress has to pick it up. if there is a debate in congress, there are enough comfort -- republicans and democrats to pass an infrastructure bank, particularly when they know they have to support the white house. that combination is unbeatable and that is what it will take. infrastructure investment in the 1.3 million dollars -- $1.3 billion omnibus spending bill. how satisfied are you with those funds? great.think that is that came from congress. there is not the leadership to infrastructure bell or
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an increase in the gas tax. that money in the on bill is terrific, but it is not going to help fund these big projects. 60,000 structurally deficient bridges, very expensive. health transit systems that are 50-60 years old that need new cars and new infrastructure, very expensive. program andtional national leadership. some of that has been provided through the omnibus bill and we need more. kevin: what about the gas tax? reportedlyrump has told lawmakers that he was in hike.of a small gas some folks inside the myth -- administration have refuted that. how much of a gas hike are you talking about? $.10 a gallon. the president was talking about $.25 at one time.
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he threw that out there to try and entice congress, it if you can do 25, maybe 10. the gas tax has not been raised since 1993, almost 25 years. what you say to say,licans -- they will you don't pay for a tax plan with another tax. increased taxes on other things. they were willing to pass a huge pass the tax cuts. and on theassed business. not much of that is paid for. their hands are not clean. if they want to do something about infrastructure, they need to raise the gas tax. shery: mr. secretary, thank you for your time. president trump will speak in about an hour and we will stay
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on top of the infrastructure headlines. we also talked about infrastructure with the mayor of new orleans. we will that interview later. this is bloomberg. ♪
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kevin: this is "bloomberg markets: balance of power." his book is called "in the shadows of statues." orleans mayor is receiving the john f. kennedy profile in courage award for rebuilding his city. i spoke with his prospects for the democratic 2020 presidential campaign. we got started talking about trade. ther landrieu: we are in import-export business. free trade has been really beneficial to the city because of the number of jobs it creates. we are very concerned.
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trade war's really don't work out well for anyone. we expressed great concern over that. we are sensitive to the fact that when you have trade that is not fair and people lose their jobs because of it, that we do what is necessary to make their -- sure the transition of individuals who have been hurt by its get into better jobs. is an i think that interesting point you made there on the second half of that. do you talk to americans, who really feel like the rise of automation, or other technological advances in the economy, or leaving them behin , -- are leaving them behind? them: landrieu: you hear and make sure they can see you hearing them, and listening to what their anxiety is. it is a legitimate anxiety that
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folks have. the answer to that is not to become more protectionist. the answer to that is to create alternatives and training for those individuals, not to stop progress. you are not going to stop it. the economy, things that are with us for a long time. do issue particularly is to better particular training and plans. technology is changing the way we have lived. it is not as much about trade. as you are nearing the end and the completion of your time, when you look at how the economy has grown in particular, what role do public and private partnerships play and how important is that to rebuild the infrastructure of a city? mayor landrieu: thank you for
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asking me that's. of new orleans was functionally destroyed. for the last eight years, we have rebuilt the entire city, schools, hospitals, a new airport, a new road french. we could not have done that without the benefit of people of america, as well as the partnership of the private sector. the way new orleans worked was always a partnership between the private sector and public sector, the nonprofit, faith-based community, everybody getting the opportunity here. arelic-private partner shops a critical part to the way we rebuilt the city of new orleans. you look at the leadership of the democratic party, some folks are in line with senator elizabeth warren, and there are other more
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centrist folks. where should the democratic party move forward as we move into a new election cycle? anyr landrieu: i don't have advice for the national democratic party. i am from louisiana. i am a democrat. democrats in louisiana are pretty middle of the road. they are not ideologically bent one way or the other. we find a way to get things done. sometimes the answer to the problem is more public sector driven, private sector driven, sometimes it is a combination. is this goingon, to help me fix the problem i have in front of me? we are not ideologically bent, which is different from how mayors look at the world, and how people in washington look at the world. republicans across america are doing a great job and think exactly like i do in terms of how to solve real-life problems.
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one of the challenges in washington is that they think about party first, the solutions later. you cannot do that when trying to run a railroad. kevin: do you think your party needs leadership? mayor landrieu: the country needs leadership on the federal and congressional letter -- level. there are a lot of capable we have to become problem solvers first. immigration reform has been waiting around for a long time. the country needs to get that done. massive investments in infrastructure seems to be something everyone in the country can agree on, and would help those on the ground make things happen that are not happening now. kevin: the big story coming on the immigration front is that 2020 census question. what do you think about that? mayor landrieu: it will hurt. we have toution says
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count everyone and the stances cannot become about immigration. -- senses cannot become about immigration. that was the mayor of louisiana. shery: is he running for president? sucker for the 2020 presidential campaign. i cannot wait to cover it. he said, never say never, which is what you say if you are thinking of running. shery: a great interview. yield."p, "real yield." from new york, this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.
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real guilt." weather.some stormy treasury yields are breaking out. break,e credit down piling the pressure on elon musk. and we look ahead to payrolls friday. we begin now with some stormy weather. do subscribe to the wisdom of the crowd, everyone got on the side of the trade


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