tv Bloomberg Markets Balance of Power Bloomberg April 12, 2018 12:00pm-1:00pm EDT
into question the people watching, both china and the eu. the barriers you describe punish american farmers more than a lot of other industries because american farmers and ranchers have been so productive. they are with you in that effort. from the likelihood perspective, we can understand the anxiety. theve been out last week on road, showing them what you told me. you are going to take care of the american farmers. you don't expect them to be the only soldiers in this battle, and first of all, i think your point about president xi, i think we have set the stage for a balanced appreciation can happen. that is what all of us are hoping and praying for, that we get a good, sound, fair negotiation with all of these countries. -- weplug your leadership applaud your leadership. president trump: i had a group
of 10 over the weekend, they were farmers -- and our as if you agree with what the president is doing with china? and they all agreed. our country is going to be much stronger. more importantly -- everything is going to be better. said, most importantly the country is going to be stronger, but we're going to make more money. as an example, i am working with -- and all of us, we're all working together. -- it is going to work out. people have been talking about this for years. we think we are going to do toething -- we're going
raise it up to 50%, which makes people happy. we are going to go to 12 months, which makes farmers happy, because we go from eight months to 12 months, it is a big difference. it was unnecessary and ridiculous, so will work out something during the transition period. aich is not easy, and not complicated, because we have to take care of refineries and other people, but we are working on transition now. ofwill be a two-year period time we have complexity while things are being built. 15 we will probably go to and go to a 12 month period. all of a sudden, there is a lot of smiles. it is going to solve a problem, and we will also be helping the refineries, so refineries will do much better. a lot are not doing well, so we have to help refineries.
we are close to getting that hard.and we worked could i ask bob lighthizer to say a few words? shery: that was president trump speaking at the room in the white house, in a meeting with governors and members of congress. you could see u.s. trade representative over to my kaiser commenting on everything -- robert lighthizer commenting on refineries. president trump saying he will take care of the farmers 100%. they have been hit by the latest actions on trade by china. and also president trump assuring farmers will be the beneficiaries on what is happening with trade. but people have been concerned with what is going to happen with these chinese trade tariffs, that apply 25% tariffs
on a lot of products given trump's actions on china. 60 to and the president comfort in saint president xi released a statement see just think that will open the markets more, which will help u.s. exports. the other thing that struck me with respect to network, he did not know if russia, the people are building auto plants in mexico. i'm not sure how reassuring that is to u.s. businesses. and we have also heard comments on syria. president trump saying for the decisions will be made fairly soon on syria. but stay on the topic of foreign affairs. while this is happening, we have cia director mike pompeo facing a skeptical audience of lawmakers debate his confirmation hearing before the senate relations committee. the president's pick to replace rex tillerson as secretary of
state, pushed back against his hawkish crotone, insisting war is the last resort. will this translates to any change in policy? columnist, elirg , how is it going so far? >> i think pompeo is doing pretty well, actually. even though there is some , i think he has the balls to get through and will not be a terribly controversial hearing. if anything, the person was going to replace pompeo as a director may professionally face more opposition because she is less known and she is affiliated with the program, and a lot of democrats and some republicans -- in the case of pompeo, he will have to questions, but he has done this before.
he will get through as secretary of state. david: one of the big issues pending right now is syria and if the u.s. will strike syria. you have a column out right now shouldn'tmr. pompeo walk away from the hawkish reputation and maybe embrace it. eli: absolutely. i think there is a few things at stake. if it turns out we can confirm the attack in syria was in work of assad, which most recently and evidence point to already considering they have a stockpile of weapons that they haven't gotten rid of and have done this before. it is important and incumbent that the u.s. is the leading power in the world that cares about upholding the international system, and the prohibition. of chemical weapons is enforced. it is a message to every other
dictators but decides to use weapons of mass destruction yes the one population that if a site can get away with it, when at them? the second thing that is less sexy at the moment is there still lisa be a decision. but will happen to the territory east of the euphrates if the u.s. and partners on the ground helped liberate from isis? without being abandoned by the u.s. as president trump suggested weeks ago? assad access, oh well u.s. state or to try to have refugees to return home and for the people living there to have a chance to rebuild their lives without being fed into the assad war machine? iraq, butnot just in you have other situations like libya where it is one thing to say we can take these guys out -- but we don't spend enough time about what comes after. what would come after you may your strike in syria?
eli: when you talk about a major strike in syria, unless it decapitates the major regime itself -- i think it would be very good and different than what happened in libya if there was a strike that was able to destroy assad's entire air force. the russians have the air force in the country right now, but assad is the one was used chemical weapons attacks before. is main way to deliver that to take the ability away from him. which should have been done in 2013. only is one way to not have a soft pay a price, but also to try to prevent this worse atrocity going forward. other atrocities as he has, but maybe you can mitigate the damage by doing that. if there was a decapitation strike, which is a tough proposition, i don't think the entire region. will collapse there still a
government around a saw and there are plans that other generals can step in. the lesson you can say is, the u.s. shouldn't get ahead of itself and destroy governments, however flawed and awful they are. but the other point is that if you do that, you have to stick around. you can't do with the u.s. did in 2011 and let the europeans rebuilt libya. that approach clearly doesn't work. shery: meanwhile in the u.s. and white house, we are seeing a chick up the foreign policy's front. we are seeing john bolton cleaning house. every day adviser is said to be leaving the house already, and we saw tom bossert re-signing earlier this week. is there a tug-of-war between the president and his foreign-policy team? eli: it is difficult to say. and, thetillerson came
president couldn't stop praising him. for most of his tenure as secretary of state was one of the principles of the national security cabinet who had no knock privileges to get the president when you wanted. presidentn and the showed the same instinct on foreign-policy. the president says he likes john bolton. so in that respect, i think they eye to ey-- they see e. but you know if this president, some days are up, and some days are down. eli lake coming from washington, thank you so much. julie hyman has the latest with stocks today. what he described also relates to stocks, some days you are up, and some days you are down.
however, today we see consistent performance today with stocks hovering around the same levels from much of the session after a initial push higher after the opening bell. a lot of headlines to follow. would hurt the president saying it might end up that ari levy if you get a successful negotiation between the u.s. and china. these tariffs sensitive stocks we are watching, particularly agriculture are bouncing back today. agricultural equipment, and also bowling is gaining 2% today. we are starting to get those much awaited earnings report we have been talking about, over which there has been a lot of optimism. not a lot of that optimism is met or exceeded. the stocks seeing the worst decline in years, coming up with the forecast that disappointed investors.
on the flipside we also heard from delta airlines, which came out with revenue forecast saying 3% to 5%.ue will rise right eight coming out with a loss, but a lost that matched estimates. evenarnings that topped the highest estimates, this is a regional bank. financials are the best-performing in the s&p 500 today. all of these numbers notwithstanding, if you look globally what is happening with earnings estimates, is a citigroup measure of cuts versus earnings gains in terms of what analysts are anticipating. after a long stretch of positive readings, last week saw a drop. in little bit less rosy last week in the sentiment and earnings. zahra have an ipo today, pricing 11 million shares at $14
a piece, above the range. a software provided that might services to companies that have subscribers. you see shares doing very well on their first day of trading, up 46% from the ipo price. shery: that is quite a jump. coming up, the latest retirement at shakes the house, paul ryan not seeking reelection. will will talk the chris collins about what is at stake about the midterm elections. this is bloomberg. ♪
republican chris collins in new york serves in the house committee where mark zuckerberg appeared yesterday. welcome congressman and take you for spending time with us today. rep. collins: good to be with you. david: i will start with what i got was a contest to see who will succeed paul ryan, but now i see there isn't one. steve scalise has set will be happy with kevin mccarthy, and it just crossed to bloomberg that paul ryan is encouraged by that. are you encouraged by that? rep. collins: if there had to be one candidate, let's start with the fact we have to maintain our majority in congress in the midterm election in order to select. the next speaker. at that point in time, whether it is steve scalise, kevin mccarthy, or a third party individual that she might be a dark horse, unlike -- similar to what paul ryan did. that is a decision will make in december, for those of us coming
back in the elections. i will be happy with both kevin or steve. typically if there is a challenge, the individuals will make a pitch to all of our conference to about what the agenda will be in the next two years and how it will conduct business. regular order and the like. we also know, presuming we keep the majority, it is likely to be left in the 241 members we have today. let's say it is 228 or 230, you need to hundred 18 votes to be speaker. the last time when boehner with our freedom caucus, not backing kevin mccarthy at that time. in fact, they do have veto power. if 20 members get together and say we are not going to support someone, than it. is impossible for the person to get the votes. hopefully that what happened. we do get the majority, but all that will play out as we get into the midterms in
mid-december. as usual is business and paul ryan is still our speaker and still sets the agenda. he is still our leader and i will continue through the end of the year. david: let's turned to the issue about whether you keep the majority in the house or not. stepping aside of paul ryan -- does it make it difficult to get the majority for republicans in the house? rep. collins: i don't think so. every election is individual, and we are all running local politics. there is to an 41 of republican seats will have to defend. most of the retirements are occurring in districts that have more republicans than democrats. we call that republican overlay. it is harder to win an open seat then they contested seat, but in this case, the vast majority -- three or four of the retirements are in republican seats.
to 15 seats, but we are not going to lose 24. shery: are you concerned about fundraising? rep. collins: most of our fundraising is individual. what he has that is help other members raise money, and he has raised the national republican congressional committee -- which and tougher races will come in independent expenditures, i.e. expenditures to shore up what could be a tough race. we saw massive spending and the georgia special election, and things of that sort. we have more money than the democrats have, an paul ryan is asll a prolific fundraiser, our kevin mccarthy and steve scalise. i think we will have the funds to be competitive, and to win.
best not to say it is easy, but it easier. race than most am also helping raise money for other members, because at the end of the day we are a team and i like to think of myself as a good team higher. player. shery: finally, your mark zuckerberg a question on facebook, from what i heard from your interview that she seemed skeptical about more relations in that sector. twitter and facebook have backed this honest ads act that was introduced last year that would put companies in a disclosure rules and ads, would you support that? rep. collins: yes i would come and out give mark zuckerberg credit as he stood there and answered questions that clarified that facebook does not sell user data. and when it came to that at issue, he said they have put in place already at facebook -- a
note your customer protocol. ads,meone knows political there is not people pretending to be someone they are not, which is what happened in the 2016 election. he gave us the confirmation that facebook is ready for the 2014 -- the 2018 midterms. will not see the same issues we saw in 2016. they have proactively already stepped forward in the ad space in the political front to make sure exactly who is putting those ads forward. --id: covers meant congressman, thank you so much for your time. is calling on russia and iran to make sure international observers and medical staff are being allowed in and around the area of the suspected chemical attack in syria. speaking in brussels today, the slovak prime minister -- condemned the incident. >> nato considers the use of
-- and thoseons responsible must be held accountable. we must do all we can to protect the bank and use of chemical weapons. syrian opposition activists and medics say last week's suspected does attack killed more than 40 people. the syrian government has denied those allegations. secretary of state nominee mike pompeo is being question at his confirmation hearing before the senate foreign relations committee. you are looking at live pictures. the current cia director says russia is a danger to the united states and that years of soft policy towards the kremlin are now over. u.k. want paid the bill for exiting the european union until there is a blueprint for a trade deal according to british brexit secretary david davis. .
parliament has the sign-up on any agreement and the deal could require the u.k. to pay up to $55 billion to the eu. the names of hurricanes that killed hundreds in 2017 and cut more than $250 billion in damages have been retired. the world meteorological organization says harvey, irma, and nate will never be used for atlantic storms. they join more than 80 other names that have already in banned, including andrew, and katrina. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. trump is upping his attacks on robert mueller and his investigation, amid reports he considered firing the special counsel and his boss, rob rosenstein. now lawmakers are warning such a move can be political suicide
and are working to pass legislation to keep it from happening. boomer reporter joins us from capitol hill. we are hearing this special counsel independence and integrity act could make it to the floor. what are the chances of that happening? >> there is definitely an effort to get it through the judiciary committee. chuck grassley has been scheduled for a vote, and looks more likely to get a vote in two weeks. this is a bipartisan effort that has been simmering for months on a slow burn, and now it is moving to the front burner after president trump sent tweets attacking robert mueller and his investigation, calling it corrupt. that alarmed republicans on the hill, and this gives it a new urgency, although mitch mcconnell, the senate majority leader has yet to say he thinks it needs to actually come to a vote on the senate floor.
david: we set a number of republicans, what is the number, and how broad is the support? one thing that center corker had to say, he said i have faith in mueller, connecting with and his presidency as he knows it. i do think he understands how the heavenly able to respond to i don't think he the responseow the human t will be. steven: they don't like these attacks against mueller. will be suicidal for the president if he went through with this. people like chuck grassley know robert mueller and they know him for decades. they say he is a honorable person with a stellar reputation.
all the concerns republicans have had with the department of justice would actually touch mueller himself. they predate him as being named as special counsel. i think the president -- if you listen to republicans -- treading on dangerous ground, and they are thinking of abandoning him in many cases if he did this. shery: steven dennis on capitol hill, thank you very much. coming up, carter smith of kentucky, ranking democrat on the budget committee thinks will be moving up to chairman next year. that is next. this is bloomberg. ♪ welcome to the xfinity store.
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the head of the wto says he understands president but says countries that get tough on trade should be careful to avoid speaking in geneva, he says some critics believe the wto may not survive the us china crisis spirals out of control. at a house armed services committee hearing today, defense secretary james mattis reiterated america's role in syria. >> our role in syria is the defeat of isis. we are not going to date -- engage in a civil war in itself. : there is a tactical concern within the u.s. military not to add to any more civilian deaths in syria.
more than 700 homes have been impacted by severe flooding. melting snow left hundreds of structures underwater. more than a thousand people were forced to leave their homes and find temporary shelter. protesters angry at the michigan governor's decision to close the last free bottled water sites in the stateerged on capital. more than 50 people entered the house of representatives. killed at least 12 people last year. the governor announced the city's water system is stable. 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. congressional legend office says we are heading to a thisbillion budget deficit year, and $1 trillion by 2020. congressman john jarvis of
kentucky talks about how our government spends our money. yarmouthe congressman today. you are a ranking member of the budget committee. what happens the next congress? >> i don't know if there is to indirect cause and effect -- effect, but it is symptomatic of in the houseeeing of representatives and the senate as well. a great deal of demoralization on the republican side. congratulate paul ryan for prioritizing his family. i hope we have the opportunity to choose his successor. opportunities the
-- have the opportunity to speak with chris collins as well, from the other side of the aisle. he says this has to do with district by district. why is he wrong? the number one issue on the ballot is going to be donald trump. that is what i hear from my constituents. there is always a local aspect any election and it has to do with the personalities and the towers of the candidates. -- talents of the candidates. this will be a referendum on donald trump and his behavior. there will be much more of a national tint to the selection. planning to ask congress for cuts in domestic programs passed by the spending bill.
a request could pass with a simple majority. is this something that could happen and what will democrats still? -- democrats do? if republicans wanted to, they could. republicans are very reluctant to do it because we crafted a compromisedful, spending proposal. butdn't folks for it, democrats provided enough votes to get it over the finish line. we have to pass another spending bill by september 30 or the government shuts down. deal, younege on this will not get much from democrats fall and the republicans will be responsible for setting the government down a few weeks before the election. they don't want that on their resume. shery: and we have a bounced budget amendment after a major nced budgetbala
amendment after a major tax cut. the republicans passed a tax cut which the cbo said would contribute to the national debt by about $2 trillion over the next 10 years. now they are screaming for a balanced budget. if we were forced to have a it would result in $800 billion worth of cuts. you are talking about a 4% of gdp disappearing. it would be devastating economically. cost millions of jobs and put incredible strain on state and local governments. this constitutional amendment would never pass primarily for that reason. state understand how devastating it would be. all they are trying to do is cover their pure ends because they are on the -- rear ends
because they are on the defense about trying to pass a tax cut mostly for the wealthiest and corporations. david: what is not cheap is the budget. we are facing a very serious deficit. would you put it as a priority to a trustee growing deficit in this country and what would you thebout it -- address growing deficit in this country and what would you do about it? rep. yarmouth: there are ways to get access. -- at this. a trillion dollars per year. a lot of them don't provide any societal benefits. we have a lot of structural issues in the health care system we could address, taking a prescription drug prices for one. allowed negotiations of drug
prices with the companies companies.- we can cut, but we can also make some fundamental policy decisions that could have a positive impact on the deficit. david: one of the things people don't talk about his entitlements. we arethese deficits talking about are bad. goingement deficits are to crash our children and grandchildren. our democrats prepared to talk about fundamental reform in entitlements? costyarmouth: there is a issue with all of these, medicaid and medicare, the two biggest programs are mandatory spending. this is a question of demographics. population,ging 10,000 seniors turning 65 every day. this increases the cost of medicare.
their social security benefits are increased. about theo anything demographics, so we have to deal with structures. there are a lot of things, particularly on the health care side, where we can use lower costs. that is where we have to be focused. shery: thank you for your time. coming up, mark zuckerberg. did he do enough to quite the critics? of alk with the ceo messaging service, next. ♪
facebook's privacy practices. tense moments, including an exchange with the congressman of new mexico. facebook has detailed profiles of people web never signed up for facebook. -- who have never signed up for facebook. collect data of people who was never signed up for security purposes. l, you heard the testimony from mr. secretary. data of peoplets who do not use facebook because of security concerns. what does that mean? is a platform that can collect a lot of data from a lot of people. they use it to model user behavior across the platform, to try and look for bad guys. explained zuckerberg some of the ways they do
business to senators. he said advertisers can never actually obtain personal data of users. given how many developers there are and how many are connected with facebook -- is that true? this the big issue here -- is all part of the big data economy. nuance between its selling and monetizing data is really important. building a company that is monetizing and profiting from data -- of the things mark zuckerberg said is that it is inevitable there will be some form of regulation. the question is whether it will be constructive. we are going to put up on the screen some bullet points to summarize the new european regulations. have a right to say you can't use my data for marketing
purposes, retrieve and sell your data, and there is a potential 4% of revenue fine involved in this. can we live with this in the united states? joel: this is called gdpr. people have been talking about this in small circles for a couple of years now. it is a really good start. regulation, i think it was interesting mr. zuckerberg was more accepting of regulation than i had anticipated. we have some really big issues around the data economy. is coming from europe, but we are also competing with the chinese, who essentially have a surveillance economy. they have all the data they can use. there is still debate as to how we should deal with this privacy. gdpr is a good start, but there are some areas where it is
lacking. data portability will be a hard piece of that legislation. enacted something like this in the states, we could put ourselves at a disadvantage to the chinese, that they would have access to the data, whatever the privacy rules? joel: there would be some innovation loss, especially if artificial intelligence -- around artificial intelligence and mining of consumer data. we may gain advantages in data protection. ickr are built to protect in a and there will be more innovation in that space, but it is going to be a different environment, then say, it is in china, where it is a state free-for-all to get access to everything, all the time. shery: you talk about artificial intelligence. orublican congressman grilling mark zuckerberg about
being biased with conservative news, but he continually pointed to artificial intelligence. how do you guarantee neutrality? joel: one of the big takeaways from the testimony is that artificial intelligence was to a lot of panacea data security issues. yet artificial intelligence is mining more data. met is like saying, give more data and trust me to use it to protect the privacy of that data. it is conflicting, for sure. shery: one senator just told mr. zuckerberg directly, your user agreement sucks. thiss this -- we have tendency to click the except user agreements without clicking about it. how much of the issues right now are because of the need for more responsibility,
and accountabilities from these tech companies, but we also need to understand what we are clicking yes to? we have a default mode of clicking guess to everything all the time, because we want that free service. some of the senators and areslators are -- who pressing mr. zuckerberg said, we entered into this data contract willingly. it is soem here is confusing and people don't have real knowledge on how to exert that control. one of the things i hope comes is that a senator was right on the money -- they s, andrrible contractrs artificial intelligence tools userstermine how confused are and make simple choices for people. shery: that would help me. thank you. david: the nebraska governor
shery: this is bloomberg markets: balance of power." it is time for our stock of the hour. -- shares are popping higher on the day. abigail doolittle joins us with details. abigail: they are positive on the stock. the demand is strong, plus limited supply. relative to that, that has something to do with the tariffs imposed on exported steel and
aluminum. we can see the health of the u.s. steel over the longer term. since the election in white, u.s. steel is sharply higher on expectations shares would be put in, and that the focus was on shale, kind of trading down. and then shares are now outperforming 73%. piece of the positive news, with longbow research a top pick. steel is into the earnings season. david: thanks so much. when the administration announced plans to impose tariffs on $50 billion worth of chinese imports, china was swept to say they would respond with nebraska'ssoybeans,
most popular cultural export. we welcome now the governor of nebraska, who comes to us from washington dc. we just saw you at the white house. you got a shout out from the president. i want to play it now. >> hello, pete. -- nebraska,ks folks. he never liked me untold we met. -- until we met. [laughter] liked me.speech and he called his brother and said, trump is good. >> you vowed to open up the chinese market to u.s. beef. >> i did that quickly. david: quite an exchange. now is sohen,
ybeans. where are you now? this is an agricultural expert -- export from your home state. gov. ricketts: the president was talking about things today that would really help agriculture out. he talked about allowing them to be purchased year round and looking at tpp and opening those markets. the president stressed with china, we have to have better trade deals. we understand the overall negotiation strategy, and the president was listening. david: you seem to be we assured about what is going to happen, here. -- reassured about what is going to happen, here. how do you reassure your constituents they will be heard? you know your business so well. that is one of
the reasons i wanted to come to the white house and talk to the president directly. talked the things he about, creating more opportunities for farmers and ranchers, was good. we have some time before these tariffs going to place. -- go into place. we have some time to make sure we get a deal with china. we wanted to stress to the presence that farmers are inches to support him and they understand these parts of the trade negotiations, we also need to be sure these retaliatory tariffs don't go into place. shery: beleaguered farmers begetting more subsidies? -- will your farmers begetting more subsidies? gov. ricketts: farmers want trade. president weo the wanted to have those trade deals, but some sort of tariff or subsidy that goes along with
that, we wanted to get those markets open. david: -- shery: do you expect anything more concrete coming from that? cannot put a: we timeline on it to know when we will get a deal. wasadministration optimistic about nafta, but could not give us a timeline on when that might happen. we expressed our concern about the waivers that have been going to small refineries. lot ofed about a substantiate stuff, but you cannot put a timeline on some of these things. inid: you have farmers nebraska who have to make decisions about planning. our farmers going to be able to go forward in an aggressive fashion with this uncertainty? the president understands what is going on with regards to agriculture. folks from other states were there. iowa was there, texas was there.
we want to make sure that the administration is listening to us. can bemers and ranchers assured to the president understands the importance of agriculture and his goal is long-term to get better access for agricultural products and grow the economy. david: governor, always great to have you with us. shery: coming up, the commodities edge with alix steel. oil markets are getting tighter. this is bloomberg. ♪