tv Bloomberg Markets Americas Bloomberg April 12, 2018 1:30pm-2:00pm EDT
on when talks will officially concluded. . we are -- >> we aren't renegotiating nafta. i have no time. the fakinging from news media that we are pushing it. we are not pushing it. mark: the president spoke after hisrt lightheiser canceled the summit ofd the americas. pushing forces to push new legislation to cancel robert mueller's investigation. this comes after new attacks on the probe and the team by the president. thinks he isent the state and an attack on him is an attack on the country. nothing could be further from the truth. the president, like everyone
else, is subject to the law and he should know he will be held accountable to the law. mark: it comes after a bipartisan group of four senators introduced legislation yesterday that would give any special counsel a 10-day window in which he or she could seek expedited judicial review of a firing. rare praise from president trump from a democratic politician. president trump treated that jerry brown is doing the right thing by sending 400 national guard troops to the border with mexico. criticizednt has governor brown as what he has seen as a lenient attitude toward undocumented immigrants. vehiclesof military were seen outside of douma today. heading into shown the region where he suspected chemical attack killed at least 40 people and wounded hundreds more over the weekend. russia's military confirmed that the syrian government is in full
control of the area. it marks a major victory for president bashar al-assad as the u.s. and its allies consider punitive military strikes against syria in response for the april 7 attack. global news 24 hours a day in over 120 countries can i'm mark crumpton. this is bloomberg. julia: -- welcome to bloomberg markets. ♪ green across the board.
geopolitical risk replaces trade. waiting game. president trump tells reporters that a final decision on siri will be made soon. trump talks taxes. he is expected to deliver remarks on tax cuts for american workers from the rose garden. first, we want to get more on that. thursday trading day. julie: stocks are off the highs of the session. focus shifted away from washington for the moment. some companies have already reported it is just the beginning. we have a lot of companies in the next month to come out with numbers and expectations have been running pretty hot. all three major averages trading
off their highs. financials leading over all. gains of 1.8%. .e heard from blackrock it came out ahead of estimates. fargo andwells citigroup, those stocks are trading higher going into the earnings report. earnings estimates are running hot for many companies, for financials in particular. there is a lot of optimism. that is a note of caution on profit margins. that is coming from pavilion global markets. that firm is looking at profit margins on the msci index. they say, if you look at the u.s. gauge, we are talking and 8.9% profit margin currently. the average is several -- 7.2% for several years.
the margin coming to a present at the end of last year. pavilion says recession is what killed profit margins. it is reasonable to expect that one will take place in the next seven years. you see the profit margin for both indices and where they are versus the average over the past decade or so. also today, we have been watching what is going on. this is pertinent to some of the financial profit margins in particular. this is what is happening with the 10-year yield. we see the biggest gain, the biggest climb in yields in four weeks as we see selling in treasuries as people move to stocks. some of the selling has eased off as we have gotten into the last hour or so of trading. finally, a note on gopro, the camera maker. that stock is surging after a report on the information that xiaomi has weighed a potential bid for the company of 5%.
sheri: president trump changing his tune on robert mueller. he tweeted a while ago. this came after the president had upped his attacks on the special counsel. lawmakers warned the white house that firing him would amount to political suicide. marty, let me start with you. we have heard from president trump, saying he is cooperating with mr. mueller. i wonder how much he is willing youeep cooperating now when have even his personal lawyer being raided by the fbi. marty: it is an important
distinction. maybe donald trump has finally realized it. the special prosecutor has deferred that part of the investigation to the new york attorney, the u.s. attorney in new york who is investigating potential hush money being paid. it has nothing to do with the mueller investigation. so shutting down mueller would have no impact on that part of the investigation. , which is very measured and very responsible in the context of donald trump's other tweets seems to be showing that he has finally realized that getting rid of mueller will do nothing to get him out of that other issue in new york. vonnie: it is interesting how separate he is able to keep that from everything else going on. most recently, we had a senator saying that the president is ready to review the tpp. marty: we got confirmation from
the white house that he did say that. ben sass says that he asked for a review of tpp. the markets responded positively because many people felt pulling out was not in the u.s. interest. if he is interested in going back, it is a good thing. : a lot going on in washington. we have mike pompeo going through his confirmation hearing as secretary of state in let's bring in bill to talk about this. how is it going so far? bell: there has been a lot of interest in the best on both sides of the political aisle to make sure that mike pompeo will be an independent counsel toward president trump. there is a sense that both
-- andts and rebel cans republicans want to rein in the president's impulses on issues from everything from north korea to syria. and at the same time, pompeo has -- president as trump's defense has been on the other side of capitol hill fielding questions on a potential strike on syria. it's a very busy day in washington. vonnie: how close are we to knowing what the u.s. position is on syria? bill: we understand that the president will be talking with his national security aides this afternoon. he said on a tweet this morning that an attack on syria could come very soon or not soon at all. he has really tried to be vague on this after sending out suggestions that an attack
seemed imminent earlier this week. we do know, with mattis on the hill and with the chairman of the joint chief of staff on the hill, i would not expected to occur while they are still testifying to congress. they does seem to be an effort by the investigation to bring foreign allies into this fight, whether it is the french or the u.k.. like ahave it more look national test an international coalition that is responding to this chemical attack on syria that just the white house alone. : we saw unilateral action last year and now we see chemical acts again. marty: u.s. officials confirmed that it was a nerve agent round in the medical tests of the victims in syria. that may be a piece of additional evidence that donald trump needed to make his decision. he has reallyis not decided yet what he wants to
do. syriast time we attacked was at a: 20 in the evening. saville's point, that's at 8:20 in the evening. we may not see, anything for a few hours. he may still want to see if there is a diplomatic solution. vonnie: we are awaiting on the yuan security council as well. back to domestic concerns, we have the president talking about taxes today. marty: he is talking about taxes. he is also talking about terrorists, in the long run, even though they have short-term impact on commodity-producing states, in the long run, it will stronger..s. that comment -- that coupled with the tpp suggestion may reduce the anxiety of farm state governors who are meeting with him today. he is trying to change the narrative and asked all the virtues of his tax cuts and the
impact on the economy, which is something he can legitimately -- should take some credit for. vonnie: marty, thank you. and thanks to bill. -- you can watch mike pompeo's fall senate confirmation hearing on live. president trump is expected to extol his tax cuts. we will bring that to you live. this is bloomberg. ♪
markets. shery: we are awaiting remarks from president trump on tax cuts for american workers. we will bring you those comments lie when they begin. in the meantime, across town here in new york at the china summit, hankcutive paulson speaking on how the united states and china can work together to tackle global challenges. bloomberg is a media partner. let's listen in. >> what would work is to set some kind of trajectory with some timelines and proceed with negotiations. the last point i would make here is that the u.s. has to be a lot work incessful if we conjunction with like-minded allies in europe and in japan,
for sure. we would be much more successful if we had a proactive, assertive with other asian countries. we missed the initial chance with tpp, which was a u.s. idea. that. not a member of but i don't think it is too late for the united states to enter the tpp if we can negotiate acceptable terms. that is sort of how i see it. skills, your analytical if you are trying to get to a solution, is there a fundamental economic issue that is the want to really work on? >> yeah. well, the fundamental economic reforms ine need for
china that open up to the competition by foreign companies to level the playing field. i'm talking about removing the ownership limits that require foreign companies to work with chinese joint venture partners. requirement to transfer technology. we are an innovation-driven society. to ask companies to give up their hard-won innovation really gets at our basic comparative disadvantage. this is a fundamental issue. administration has been in for sizing the -- has been emphasizing the unfavorable balance of payments that the u.s. runs with china.
we have a big negative trade balance with china. but with the whole rest of the world. that is because we consume more than we produce. we spend more than we save. i don't think a negative trade balance is necessarily bad. not only are exports good, but much of what we import is very useful and good. positivesee it as a that the trump administration is looking to increase u.s. exports to china. areask there are some that are really suitable for that. there is opportunity to export much more in the way of natural gas, computer chips, other things. there wouldogress
be a real positive. still -- i really like the fact that the trump administration is putting a big emphasis on technology and on intellectual property. when i look at the technology industry, which is our core has,tage that the u.s. again, i am not expecting china its industrial policy. but i do believe that there is to change the competitive landscape, to do things that make it much more favorable in terms of market access, a regulatory environment, the rules under which technology companies need operate in china.
all those things are worth negotiating. i think the last point i would look atthat, when you barriers to competition, tariffs aren't the biggest ones in today's world. in today's world, the areectionist tool of choice regulations and standards. i sometimes referred to them as the wolf in sheep's clothing. they are the enemies. i think what the u.s. should be pushing for is raking down barriers in industries where we have a competitive advantage. it could add a lot to china. financial services is a good example. services more generally. we have talked about technology, ip. vonnie: hank paulson at the china institute executive summit
in new york. let's get to the rose garden. president trump is about to address the nation. [applause] president trump: thank you. thank you. thank you very much, everybody. you must have been looking at today's stock market. [laughter] pretty good numbers. it is wonderful to be here in the before rose garden. special place. special building right behind us, the white house. we are going to discuss our massive tax cuts that are growing pages follow the country, expanding jobs, expanding the american dream, just like we said it would happen. that is the way it happened. [applause] all of thehank members of congress here today who helped us pass these incredible tax cuts and reforms into law.
for years, they haven't been able to do it. they were unable to do it. not since ronald reagan. and we talked that one. they called it tax reform. we discussed that, right? we discussed it. i said we have to call it not tax reform to nobody knows what that means. that could mean tax increase. it tax cuts. call so we called it tax cuts and jobs. and we got it passed. [applause] i also want to recognize a great friend of mine, a man who is doing a fantastic job, vice president pence. mike, stand up. [applause] and members of my cabinet, they are working tirelessly. we have secretary mnuchin, secretary acosta, administrator mcmahon. please, stand up. [applause]
and all of the members of congress and senators, thank you , and congressmen and women, thank you very much. most especially, i want to thank the american workers in the audience. we have a lot of them. they have traveled here from all over the country. they wanted to be with us. this event is dedicated to you, the hard-working americans who make our nation run. you love your country. do you provide for your family. you are proud of everything you have done. extrave got that great strength that other people don't have. a wonderfulish thing called our great american flag. [applause] and now, because of our tax cuts, you can keep more of your hard-earned money. happy about is very
that, sitting in the front row. right, larry? good get he says yes. arried couples will not pay dime of income tax on their first $24,000 of income. a typical family of four earning $75,000 a year will see their tax bill slashed in half. nobody thought they would ever see that. they have a lot more money to spend. we did not get one democratic vote. that's tough. in fact, i have to say, they want to increase your taxes. if they ever got into power, they had stated they want to increase your taxes and spend money on things you don't even want to know about. so we have doubled very importantly the child tax credit. want so many other things and people have wanted other things. frankly, we fought very hard.
we have taken care of our military for the first time in many, many years. $700 billion. [applause] we will have the strongest military that we have ever had. can you think of a better it time to have it? right? this is when we needed. we will have it. $700 million. add next year, $716 billion. also in that bill, $6 billion for opioid and helping us out with that horrible, horrible album -- problem. [applause] the fact is we don't care about the donors and the special interest. we only care about you and your family and really making america great again. that is what we care about. that is why we are here. from the day i took the oath of office, i have been fighting to drain the swamp. sometimes it may not look like
a, but believe me, we are draining the swamp. there are a lot of unhappy people. all you have to do is turn on the news. every time you see me hit, you know i am draining the swamp. and people don't like it. [applause] but we are also defending the american worker. we are making incredible trade deals. we are taking nafta, one of the worst deals ever made in the history of trade, and we are redoing it. and it will be a fair deal for the americans. we lost thousands of factories and millions of jobs because of nafta, thousands. think of it, thousands of factories, millions of jobs. we are turning it around. already, chrysler is coming back with oil plants. many companies are known michigan, ohio, different places, pennsylvania. they are building beautiful auto plants. there -- nobody thought they would see that happen. we created 3 million new jobs
since the election. unemployment claims are at their lowest level in nearly 50 years. think of that, 50 years. [applause] about,ng i'm very proud unemployment rates for hispanics and african-americans have reached the lowest levels ever recorded -- ever recorded. think of that. very proud of that. [applause] remember, i used to say at rallies, what do you have to lose? guess what. what do you have to lose? you have the lowest levels ever recorded for african-americans, hispanics. i'm very, very happy about that. and by the way, for women, the lowest levels in 19 years. so we have really good numbers. [applause] and something a lot of people didn't take was going to happen. wages are rising at the fastest
pace in over a decade. we are cutting record numbers of regulations. we cut more regulations in a year and a quarter than any administration, whether it is four years, eight years, or, in one case, 16 years. should we go back to 16 years? can we do that? congressmen, kelly have that extended? [laughter] the last time i jokingly said that, the papers were saying he has despotic tendencies. no, i'm not looking to do it. unless you want to do it. that's ok. [laughter] we are also unleashing american energy and american energy independence. we are now an exporter of energy. --are doing -- think of this 10 million barrels a day. nobody thought they would see this. 10 million. in fact, it will now be 10.6
million. we are cracking down on unfair trade deals. we are taking strong action to secure our border, stop illegal immigration, and restore the rule of law. and we passed the biggest tax cut and reform in american history. more than 5 million workers have already received a tax cut bonus, a pay raise or a new job thanks to these really massive tax cuts. millions president trump: millions more are getting higher take-home pay. no one has been more energized like tax cuts than american manufacturers. presidentday is the of the national association of manufacturers. j simmons. thank you, jay.
for 20 years, their organization has surveyed america's manufacturers all over the country. it is a great organization. seenhave never before the levels of optimism that our tax cuts as delivered. is that a correct statement, jay? it is dangerous to ask you that, because if you say no, i have a problem. [laughter] [applause] president trump: in fact to date there is more good news. i wanted all of you to be the first to hear it. according to the latest survey by the national association of manufacturers, projected job growth for american manufacturing has reached a new all-time high. [applause]