tv Bloomberg Markets Balance of Power Bloomberg April 16, 2018 12:00pm-1:00pm EDT
syrian strike aftermath, the u.s. says more russian sanctions on the way and it is ready to hit syria again if necessary. jamesesident and the fbi, comey says the president is not morally fit for office, the president says james comey committed many crimes, the one winner is the sales of james comey's book. lawyers for president trump go to fight the justice department reviewing documents are ready taken from his personal lawyer as the saga continues. ♪ david: let's get a check on the markets with julie hyman. julie: stocks are rallying to some extent, very high expectations when it comes to earnings. some of the numbers thus far
have been mixed. see thesee if we sustained rally in stocks, broad-based with all sectors in the s&p 500 trading higher. strength particularly in transport who fall into the industrial sector. at classification in the s&p 500 and the dow jones transportation average of 2.4%. a number of different reasons why, including earnings. dust truckingnd and logistics cap of a soaring with their earnings per share matching estimates but analysts says they were low expectations for this company. perhaps shares trading higher as a result of no worse than feared. worldwide, another trucking, logistics company that ubs has risen to buy. a cycle sweet spot with the company where upside is attractive and downside protective. has beenlines
canceling a number of flights over the past several days because of the weather and those are going down today. oil is pulling back after a five session surge which could be helping delta and other airlines. union pacific getting an upgrade or a price target upgrade to $145 on what analysts say are challenges for the railroad. this is translating into higher trading for the transport. specifically, it is moving about its various moving averages, well above its 200 day moving average and now going above its 50 and 100 day. a little bit of a momentum breakout when it comes to the dow jones transportation average. we are looking at costco and other retailers, grocery stores, program walmart trading higher with costco getting an upgrade over wells fargo.
shares outperforming analysts -- and analyst who says there will be strong comparable sales growth and the momentum is sustained for costco, and membership trends continue to improve. even though these gains are coming from various analysts way, around a earnings and how the future fundamentals at the company's will look. shery: thank you. mark crumpton is here with the first word news. >> the white house says it will decide in the near future whether to impose more economic sections on russia. yesterday thatd sanctions would be imposed today. she says the goal was to discourage syria from using chemical weapons again and to keep russia from covering for regime.d president trump continues to raise money at an unprecedented rate, according to the federal
election commission, the presence campaign raised 10.1 million dollars in the first quarter of this year and had more than $28 million in total. it is unusual for a sitting president to raise money for reelection this early in his term. in south carolina, seven inmates were killed in a prison right overnight and another 17 were injured. the correctional institution houses some of south carolina's most violent offenders. in cuba, a historic political transition will begin a day earlier than expected. the cuban state media reports that the government has moved up the start of a session of the national assembly to wednesday instead of thursday. castro lance to hand over the office to his successor, the current vice president good raul castro took over from his brother and 2008. global news 24 hours a day, powered by more than 2700
journalist and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. shery: coming up, we will talk to congressman john garamendi of california, a member of the house armed services committee about the u.s. strategy in syria and where we go from here. this is bloomberg markets. ♪
senate armed services committee. in your capacity on this committee, what do you know about what happened and whether it was affected -- effective? rep: garamendi: nothing. we have not had a briefing about the attack. today,back to work although i am not aware of a hearing taking place on this and everything probably tomorrow about what happened. all of the details about the military attack. the lead up and a hearing we had about 16 hours before the attack, in which there was no indication from the secretary of defense, or the chairman of the joint chiefs of staff that an attack was imminent. less than one day beyond the moment before at the armed services committee hearing. , is therethis unusual a small amount of information flowing from the white house,
given the military attack in the middle east? rep: garamendi: it is not unusual, probably the way it has to be, you do not want to tell everybody what you're going to do. president trump has made quite a deal out of what he said president obama was telegraphing his punches. in this case, president trump announcingpunches, that the big beautiful rockets would go into syria. he did telegraph his punches, where, when, how. syria new what was going to come. and noces were evacuated human casualties. that is on the tactics involved. a much bigger question is -- who has the power to wage war? does the president have the power to declare a war and -- what is called an
actual bombing of a country without congressional approval? apparently he does, although the constitution does not say so, it is very clear, congress has the only a 30 -- authority to declare war or authorized military force. however, we seem to have abandoned that and let the president have that power. i do not believe we should be going down at all. looking intogress ways of making congress more involved in these decisions when it comes to authorizing the use of military power? rep: garamendi: is it possible to get a serious objection -- injection of courage? responsibility of at least reading the constitution an understanding article one, section eight says congress declares war? two, gives, section the president, commander-in-chief, nowhere does it say he has the power to
launch an attack against any country. on his own without congressional uproar -- authority. in 1973, congress authorized the war powers act. that is defensive. can'tays the president take action, if there is an imminent threat or an actual attack on the -- can take action if there is an imminent attack or an actual attack here congress -- actual attack. abandoned one of its most important functions and the man that wrote the constitution were very clear when they said it is congress. they want our country's representatives to say, we are going to war not. shery: will the strike make a difference in the influence of iran and the russian influence in syria that could pose a threat in the long term for the united states? rep: garamendi: you raise a good point and it speaks to what is seriously missing in this entire
attack on these chemical weapons facilities. that is, where is the strategy? is it another one off? we will just launch a bunch of rockets in syria or is there a strategy behind it? there are a half a dozen countries involved, united states has 2000 troops in syria, presumably going after isis. we have allies. we have turkey, they are going after the kurds. they have troops in syria. iran has perhaps several thousand military guards in syria right now. obviously, we have russia. all of these countries are involved in wars in syria. what is the strategy of the united states? what is our goal and objectives? not any of that has been enunciated by this president. he promised that he would deliver a strategy for iran and
isis. and iraq. never has that been forthcoming. we are operating with a president who is at best helter skelter, who changes his mind every moment. taking control. there is no state department. there are no ambassadors in this country's. -- in these countries. we are in a dangerous environment without a diplomatic people in place, and without a strategy, or even an objective beyond wiping out if you chemical weapons plants along the way. that is not a strategy. it creates a dangerous situation in which nobody knows what the united states wants to accomplish. david: is the issue of congressional participation, the decision to go to work, is that a partisan issue?
are you hearing sympathy from republicans in congress saying, even though i may not have agreed with the strike, there should be a process in which we are consulted? >> the word -- rep: garamendi: they weren't consulted is not appropriate but the answer to your question is yes, there are members of congress on the republican side that has spoken out very forcefully about the administration not seeking congressional authority. not consultation, authority to conduct a military campaign against a foreign government. that is what this was. this was not against isis, had nothing to do with isis. quite the opposite. this was against the country of syria. good, good that this happened, good we took action against the chemical weapons facilities. certainly the use of chemical weapons is for rent this and never should it occur. that is horrendous and it never should up -- is a rent this and
it should never occur -- horrendous and it should never occur. a critical thing about the authority of a president that is, at best, inconsistent. having the authority to launch an attack against a foreign government, that is a big deal. it is one in which congress must get back its authority and hold tight the responsibility given to us in the constitution. david: many thanks, great to have you with us, congressman john garamendi of california. tory: the u.s. is set announce fresh sanctions against russia related to the syrian reported use of chemical weapons against its citizen. nikki haley clarifies who will be targeted. russian sanctions will be coming down, steve mnuchin will be announcing them on monday, if he hasn't already, they will go directly to
companies dealing with equipment relating to bashar al-assad and chemical weapons use herse. shery: great to have you with us. singling out companies earlier this month that contributed to the instability in syria and we have more. what do we expect treasury to target? >> we do not know exactly and nikki haley got out ahead of the rest of the administration with those comments yesterday. they may not be prepared to announce sanctions today. officials,companies, russian businessman perhaps, associated with syria's suspected chemical weapons program. shery: how much tighter are we expecting the sanctions to be on russia, because we have seen trip -- sanctions before and nothing much has changed in the behavior of russia?
alex: we have little to go on other than the statement from sarah huckabee sanders who said that the sanctions are under consideration. we do not have a lot of details. what: this is apart from the white house and nikki haley are saying, what do we know about the extent russian companies have been supplying precursors for chemical weapons to syria? alex: i do not think we know very much at all, russia denies there are any chemical weapons program in syria. that seems to be a lie based on what is going on in this war for the last year or so. nikki haley said last week that the charlotte side regime has been that -- bashar al-assad regime has conducted more than 50 chemical weapons attacks. it is cloaked in secrecy and i have not seen reporting on 'sssian support for assad chemical weapons program. david: is nikki haley gone rogue
-- has nikki haley gone rogue? particularly aggressive? alex: i do not think she is. she and donald trump are on the same page i think with syria. reporting by us and others that nikki haley and john bolton and donald trump are on the side of a much more expansive attack on syria. james mattis, who is more cautious, worried a great deal about revoking the russians, urged a narrower attack. they ended up with a narrow set of airstrikes on probably buildings that did not have a lot in them. they avoided a russian provocation. i think nikki haley is one of donald trump's favorite in the administration. fair to say she has pretty obvious political ambitions. shery: president trump tweeted
about the relationship of the u.s. and russia being worse than the cold war. have you heard anything about communication between the onsident and vladimir putin a personal level or behind the scenes? alex: they have not reported the conversations between the leaders since i believe march 20. the kremlin did say their hotline between u.s. and russian forces in syria was active ahead of the u.s. airstrike. there is considerable talk on the high line that hotline before the airstrikes -- hotline before the airstrikes to put what an acceptable target would be for the russians which is how the u.s. developed the target list of chemical weapons research facilities, a bunker, and a warehouse. shery: thank you very much to alex wayne. personal trump's
will ♪ i am shery ahn. david: i am david westin. michael cohen will share the spotlight with the southern district of new york court today , adult film star stormy daniels is said to appear at the manhattan courtroom as the president's lawyers will make an ordinary request -- extraordinary request, to block the justice department from looking at evidence that had been seized in and at the irate in his office, home, and hotel room. date.us up to a team was supposed to review the documents but now an
intervention by lawyers for donald trump to stop it from going further. >> exactly, the government has responded to the request by the president by saying the president's application cites no example of why they should be able to do this. the government argued that there is no email communication between michael cohen and the president and michael cohen, this legal practice is minimal and mostly engaged in a business activity for the last 20 years. david: one of the requests from donald trump's lawyers is let us look at everything before it goes to the justice department. is there precedent for that? >> no. another thing the government responded to, if you allow this, this will have a corrosive effect on the gathering of all evidence in every case because you can ask a defendant who does not turnover thing voluntarily to let the review -- let them
review things that have been seized. there is a high bar for the government to get a judge to sign off on a search warrant for an attorney for the united states president. the argument for the president's lawyer? greg: the government has the material from michael cohen's office, computers, etc., and they want to have a special master, an outsider with some say in determining and reviewing the material. shery: speculating what michael cohen could no --k now, but limit -- know, but limits to what he may know. >> michael cohen was not necessarily at the center of trump organization business matters, just the opposite. more of a concern that a lot of the things michael cohen did were business-related or he was
a fixer. he took care of problems that would come up, like the one this afternoon involving stormy daniels. david: she will be present in the courtroom. is that your theater -- pure theater? greg: that is an element. her lawyer has been very aggressive and he has an interest because of the believe, not unfounded, that the material taken from michael cohen's office and hotel room may shed light on her situation where she is trying to get out of the contract she signed. david: her lawyer trying to look at the documents? greg: yes. shery: prosecutors say that from the evidence, not much legal work involved in the documents. greg: yes, consistent with what we learned about michael cohen. he has been valuable to donald trump personally and members of terms ofy, but not, in
the trump business, not an executive, not had a formal executive role. david: in which case, privilege does not apply. greg: that is right. david: not acting like a voter. shery: thank you for explaining -- acting like a lawyer. shery: thank you for letting. trump up, how president is hitting back at james comey ahead of his book released tomorrow. we will have details next. this is bloomberg. ♪ welcome to the xfinity store.
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easing acal tension little bit, and the s&p 500, every sector is in the green, led by utilities and energy. the s&p 500 gaining 7/10 of 1%. while church or is our lower today with yields at a three-week high. david: we turn now to mark crumpton. mark: michael cohen says he gave legal advice to three people last year, including president trump and former deputy of finance chairman of the republican -- no committee. the third client was not disclosed. ordersas disclosing before a judge and will appear at a federal court today to determine if oscars can review materials seized by the fbi's rate on his office, home, and hotel room. united nations says it has required than 520 mission for
the prohibition of chemical weapons to investigate the suspected chemical attack in syria. u.n. spokeswoman responded to a report from motion officials that the opc team was denied access to the site in duma. syrians gathered in damascus to rally in support of their armed forces and president. ved syrian flags and chanted their allegiance to assad. the demonstrations were in airstrikes from the u.s., britain, and france over the weekend. fighting broke out between and law enforcement in armenia. demonstrators faced off with right police fired tear gas into the crowd.
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. shery: president trump is punching back at james comey. the former fbi director cap kicked off his book tour since being fired last may and president trump is accusing comey of lying. we are joined now by former assistant director of the fbi, bill gavin. was there anything for you that stood out in his interview or what we have seen from the book so far? i believe what came of the interview last night was more of an expansion of the preliminary spots said before.
two individuals of the statutes they have, the former fbi director and president of the united states trading barbs about long it is not befitting of the two individuals involved. we need to go beyond that and address facts more than personalities. shery: mr. coming before the senate said he couldn't say much about an obstruction of justice case being made. in his interview he said when president trump requested to let it go when it can to the fbi investigation into former national security advisor michael flynn, that possibly amounted to obstruction of justice. how significant is this? bill: it is a simple opinion of james comey, and it is a possible -- i think anybody has been convicted or put on the stand based on possibility of a crime being committed. david: i am old enough to
remember an old tv show of a policeman who said just the facts, ma'am. it seems to have gone just beyond the facts. what is this doing to the fbi internally in terms of his reputation? my own personal opinion, i maintain contact with many of the people within the fbi -- 99% of the fine men and women in the fbi come to work and do the outstanding job that everybody remembers them for doing. and they do it without bringing political persuasions to the workplace. the unfortunate part here is we have six or seven people who happen to unfortunately be at the top of the heap, who violate the principle. but political elites and prejudices into the workplace. james comey -- my own personal opinion -- when he made a decision -- a prosecutive
decision regarding hillary clinton -- that is where i think things went wrong. as the head of the arguably greatest investigative organization in the world -- i don't believe yet any business making a prosecutive opinion. that should be reserved for the department of justice or lawyers across the street. loretta lynch said she wanted him to do it, i still would not have done it across pennsylvania avenue, and had to assign somebody for prosecution. if they decided they didn't want to prosecute, that is all on them. unfortunately that decision started the snowball. david: comey says there is a vacuum, the attorney general was indicating she was not willing to release him to do her job. itthere was a breakdown, was appropriate for the fbi director to take it into his own hands? bill: i don't think it was
appropriate for him to do that. there's always a deputy general or someone in the chain of department of justice, if she didn't want to do her duty as attorney general. if she didn't want to do that with her meeting with bill clinton, then she should. have someone else make the decision. it is not up to the investigative agency to render prosecutive opinions. she should bring it over to the department of justice and the them work with it. they should have convened a grand jury whereby we would have been able to get greater detail, but there was no grand jury. i believe the case should have been handled by agents on the street in washington. unfortunately, the investigation was conducted by the florida fbi. clinton's --ssed miss clinton's handling of the
imo's was said to be careless, and given the rephrasing and his decision of going ahead and updating the public, how should he have gone about doing that? bill: he should not have rendered a prosecutive opinion. just let that go work goes with the department of justice. he can say in his initial description of what she did, everybody at the end of 14 minutes decided he is going to recommend prosecution, and suddenly it changed. direction. he said nobody at the department given these facts will render prosecution. it is not his business to decline. in my estimation, i fully understand he believes that it is true that he did what he should have done. i just take exception to it. david: accepting what you say about damage done to the fbi, are we on the right path now? how do we get out of this? bill: the men and women of the fbi go and do what they have to do. andjuvenile name-calling
throwing stones across the fence at each other is to stop. on both sides. i don't fault anyone side -- both sides need to stop and get down to the basic facts. releasing facts to sell a book to me is not a professional way to do it. and to call somebody a slimeball from the highest office of the land is not exactly the way to address the situation. david: bill, we appreciate your thoughts, coming to us from boston. coming up, republicans looking to sell tax cuts to midterm voters, but will that be the issue on voters might as they had to the polls in november? that is next. this is bloomberg. ♪
shery: president trump posting a roundtable are small businesses in florida, treasury secretary steve mnuchin also in attendance there, who monitored the event and bring you the headline. we heard mr. trump say he wants to veto any bill that would overturn the tax laws. it is time for the stock of the hour, c-shares of bristol-myers squibb is falling more than 8% with rivals make advances a lung cancer drug. joining us is taylor riggs. of who is race getting ahead and was falling behind, and in this case bristol-myers is falling behind its lung cancer drug.
they made significant advances today, and if you come into my terminal at gtv , you can see by the share price alone the difference between these two and tell investors are feeling about merck and green. from's a presentation cancer research today, and mark combined with chemotherapy had a practice changing result. bristol-myers had good results, but left out specifics, so analysts were questioning how much progress they need to make to leapfrog and catch up to merck. up 29% of sales, but interestingly enough, it will go from number one to number two. you get the sense they are sort of falling behind in this race. some analysts halfway through the study changed their study to
focus on a certain sort of advance tumor. skeptics are saying if you change it halfway through, are you doing it to make results better? some are saying maybe they did that and they could have a niche. so some questions from analysts perspectives. david: it is important to cancer patients because like cancer has a high mortality rate. how important is this to me rck? >> it makes up about 20% of their sales. we have a chart showing how it has skyrocketed -- a percent of sales even after a few years ago. that is when they got results today, at nyu professor saying this is changing, the survival rate picks up with the struct combined with chemotherapy. and credit analysts are saying if it goes well, they could get
32 5% of the market. republicans states their hopes on tax reform. >> might be is if we can't sell this to american people, who should go another line of work. people will value and appreciate them but obviously it requires us continued discussion with the american people. we are going to be doing that all through the year. david: four months later, howard tax cuts going for voters? i want to bring in our national political reporter sahil kapur. do they need to look for in other light of work? bag, thea mixed election is looking rough for
republicans, and the incumbent party loses seats in midterm elections. there are hawks this tax cut will be more popular from a tough election, but has become modestly more popular since it was in the down in the dumps in the passage of law, but it is not a defining issue. most voters say they don't care about taxes as a top issue. david: is it early going? maybe they haven't been back campaigning and making headway? >> lawmakers are going home for recesses at the easter recess and campaigning heavily on their accomplishments. this is front and center of them. you have paul ryan mitch mcconnell in the senate who are aggressively touting every piece of good news. every middle-class american is praising tax cuts, saying they are happy with gains they are seeing in their paychecks.
companies that are getting raises and bonuses come as there is a lot of that going on. but it hasn't delivered results. in one special election in western pennsylvania last month, a district trump won by 20 points -- a republican to a democrat. that is one warning sign. shery: why hasn't been difficult to sell tax cuts? >> the simple issue of where trump is the standardbearer and paul ryan is retiring -- tax cuts have lost the luster as a winning political issue for decades, especially in the reagan era. tax cuts were seen as the winning issue for republicans, but that is changing. republican voters united around it and nobody opposes tax cuts but they are not excited by it. shery: this that mean will not two?ax cuts facphaese
two is aer phase messaging vote, it is about making the individual tax cuts permanent. right now they are only there for eight years and then they expire for a majority of middle-class americans. but that is down the road. republicans want them cuts to vote against the and making material and say democrats voted against middle-class tax cuts. david: if this keeps going the way it appears right now and taxes are not the issue, what is likely to be the issue for midterm elections? or is it going to be district by district? is theld trump galvanizing force for democrats, and that is why there is mobilization. in 2010 they got horribly beaten up and down the ballot by republican candidates were more energized against president
obama at the time. this is shaping up to be referendum, as midterms are usually after the president takes office. president'se see approval rating come up a little bit. >> it has come up slightly, is remarkable how stable his approval rating has been from the high 30's to low 40's, despite one of the most tumultuous periods of thany american president. if 40% approval rating is not exactly great news for a party try to keep control of the house. ahil, thank you. president trump at a roundtable saying syria did not shoot any missiles down. robert mercer has found a way to keep the conceal and carry park
david: this is "bloomberg markets: balance of power". shery: robert mercer traded in his lake arthur, new mexico batch for a new one. the hedge fund tycoon is a volunteer member of the yuma county colorado police force after mercer spent nearly six years as a volunteer placement in a small town with a toulation of 433 people, reap the benefits of a concealed and carry part that comes with the badge. here with an exclusive scoop is bloomberg's zack snyder. >> robert mercer, we reported a while ago was a volunteer we didn't know if he
was in the law enforcement game, but he found another sheriff's office in a role part of colorado. a county of 10,000 people, and he has joined the department along with associates. shery: we know anything about what associates have joined and what they are doing their? re? >> it is his son in law and another employee, and he also donated a brand-new truck to the sheriff's office in colorado, and some tasers. and they are talking about making another donation. david: the lake arthur operation got shut down, is it because of our reporting? >> i think it was probably because of our reporting and it was a swirl of activity and scrutiny that suddenly focused on that count. the mayor decided it wasn't worth it so he shut the whole program down. there is no police department in lake arthur. david: do you follow him around
the country, is that the plan? >> yuma county seems different. there's not hundreds of badge holders as there were in new mexico, and it is a smaller number and it seems like a low-key operation. i do not if you will keep his batch after this revelation, or something else will happen. shery: what documents are you umaing for from you m county? robert mercer is a computer programmer from long island, so we asked for his obligations to serve as a reserve member of the sheriff's posse in colorado. , anding qualifications things like that, and that request was rejected. shery: you know how much the donations amounted to? was $65,000p truck
and the tasers were $20,000 and change, and they're talking about donations to replace handguns. it supports ae number of police organizations around the country and not the ones he goes to work for. >> i couldn't say that, it is a small foundation, and much of the other work this foundation has done his actually to advocate for the rights of hiscers like mercer and associates to carry a concealed weapon in all states. there go around trying to educate jurisdictions of the fact they have to honor these badges. david: is there any movement to revisit this statute that give rise to all of this? congress passed this law for the safety of existing police officers, to some extent the general public to have. officers aren't as a good idea but a create this cottage industry of people becoming police officers in name just to get badges for the sake of these concealed carry rights. it is an soon-to-be what
commerce intended when the past a lot into thousand four. in 2004. in colorado we know a gentleman was a gun rights activist in denver who connected the sheriff in this rural county with robert mercer. [laughter] david: where is the nra and all of this? a the nra is a supporter of 2004 law, and they would like concealed carry nationwide. the policy item that is on the table right now that would essentially allow most people to have the same concealed carry rights that robert mercer does to carry in every state without having to go to every state to get a separate concealed carry license. david: thank you for being here, zach. and sign up balance of power newsletter and get the latest on
global politics in your inbox every day. at lifeet's take a look pictures of president trump speaking at a roundtable for small businesses in florida. you can see treasury secretary steven mnuchin is also in attendance in that room. the president has said he will veto any bill that would overturn the tax reforms. of at&t issident starting a bonus trend for employees after the tax laws. president also talking on the military strike on syria last week, saying syria didn't shoot any missiles down. this is bloomberg. ♪
are set to do great the chemical capabilities of the syrian regime. deterrence, meaning it shows that the national midi reacts when chemical weapons are used, and it helps protect the bank on chemical weapons. mark: he says russia has prevented an independent investigation by the went and that nato allies were left with no other alternatives. canadian prime minister justin trudeau and french president emmanuel macron says they renewed economic partnership has boosted jobs in investments in their two countries. in a joint news conference, lopez the benefits of a trade deal between canada and the european union that can largely into effect last september. he said canadian imports from france increased 4% last year, and canadian investments in france has