tv Bloomberg Markets Balance of Power Bloomberg May 23, 2018 12:00pm-1:00pm EDT
president trump makes his presence felt in corporate america. he is promising big things for u.s. auto workers. we will be joined by bob goodlatte and what he says about the mueller probe and the fight over an immigration bill. doubts grow over whether president trump will meet with kim jong-un. mike pompeo tells congress the summit is still on as planned. however, pompeo says the u.s. will settle for what he calls credible steps toward new -- toward denuclearization. ♪ david: congress has passed a sweeping overhaul of bank regulation, a bill that would to. good on trump's about
here is kevin up on capitol hill. we've got this done. what is left to be done? you spoke with the chairman of the bank union there. kevin: he thinks there is a lot more work that can be done. it is unclear whether or not the political calendar will allow it to get done. the first part of this dodd-frank tweak bill was really to provide regulatory relief for community bankers. that's why it was able to attract not only republican support in the house and the senate but 16 democratic senators as well as 33 democrats in the house when it was voted upon yesterday afternoon. but now, all attention turns to restructuring some of the financial markets. that is something that i'm not sure there is a lot of divide
on, about whether or not they could get something done in the summer. i'm here the president could have a bill signing ceremony as early as tomorrow. nothing has officially come out in terms of when president trump will sign that piece of legislation. we should note the politics of this. it is highlighting a differentiation between the democrats and should the democrats win the house of representatives after the november midterm, someone like maxine waters could become chairwoman. she voted against this. in the last half-hour, i got an alert from senator elizabeth warren's office. she will be giving a rebuttal of sorts in the coming days. shery: we have also heard from president trump through the streets this morning, saying there will be big news coming soon for our great american auto workers after many decades of losing jobs other countries. you have waited long enough. any idea what this could be?
kevin: what i am gathering from sources i spoke with last night about the ongoing bilateral trade agreements between the u.s. and china, it could be what many republicans on capitol hill are wanting to hear about the totality package of the president's plans with china. the president proposal trade restrictions for zte has been met with criticism among republicans in his own party. they want to hear what else the president plessy a from the chinese. it could be something with -- could see from the chinese. withuld be something automaking. david: a whole new approach to china. what is he talking about? do we have any clues? kevin: in addition,
steve bannon is back making some chatter. wilbur ross is set to go to beijing in june to continue these bilateral trade talks. it also comes at a time when the chinese feel like they have leverage on a meeting now, but also at a time when republicans are pressing this administration -- it is the republican pressure here in congress that will drive this narrative and his policy on agriculture as well as national security with zte. republicans are not fully on administration with regards to how he is negotiating this back and forth with china. that is causing a -- there has been a lot of reporting we have done on the divide between the president's administration, between mnuchin and peter navarro, but there's more in commerce that influences where this is headed. shery: secretary mnuchin also talking about u.s. tariffs to on $50eing on hold
billion worth of chinese goods. any idea if those could happen, if those could be of limited now? kevin: that of these is the populist base, the trump political advisers. they feel the. president should hold fire to use it as a threat and back-and-forth negotiations. secretary mnuchin really dangling that as a potential trick they still have to play or a card they have to play in these continuing talks. the big deadline in terms of steel and aluminum is still june 1. that relates to mexico and canada with regards to nafta. but all of this is so interconnected. i spoke with someone last night me.framed it for it is so unique in that we are watching these bilateral trade talks develop in real-time. that is very different than anything we have seen in the past.
david: i hope you are around tomorrow so you can all this to us. in sure it will all be sorted out by tomorrow. [laughter] kevin: thanks, david. david: let's get a check on the markets. julie: we see stocks fall today, not quite at the lows of the session. they have been bouncing around. the nasdaq is now little changed, the dow doing the worst of the three major averages. in terms of the movers today, i know david has been watching the evolving media m&a dance carefully. comcast is confirming that it may make an offer for the 21st century fox entertainment assets, those that disney had already agreed to buy. an all said it would be cash offer, a premium to what the disney has offered. fox shares up. comcast and disney tracers down. disney- comcast and
trade shares down. now, ford, general motors and fiat are trading lower in today's session. we have home sales data later today. new home sales data coming in lower than expected. we see some of the apartment rise, the assumption that we will see more rentals versus folks buy new homes. these apartment reits trading higher in today's session. finally, a little breaking news on general electric, which is holding an analysts day for its electric products group. john flannery speaking at the conference says there is very the aviationsees and healthy units very strong and robust earnings growth at baker hughes.
looks like shares taking a leg lower on those comments. shery: breaking news out of turkey. the central bank has just held an extraordinary rate meeting. we know the turkish lira had fallen to record lows. it is now pairing backside of its earlier falls. it is holding a 4.7%. we do know that the central bank held the rate of 13.5% in his last meeting of april 25. they hide by 75 basis points. their next meeting was june 7, but now they have just held an extraordinary rate meeting. turmoilthe latest triggered by erdogan who proposed interest-rate increases. he just said that he intends to take more responsibility for monetary policy if he wins the june 24 election. we see the turkish lira
shery: this is bloomberg markets, balance of power. david: let's get a check on bloomberg first word news. mark: president trump says the united states will probably need what he calls a different structure when it comes to trade with china. the tweet today comes after the two countries agreed to suspend plans to impose tariffs on as much as $200 billion in each other's goods, pulling back from the brink of a trade war. james comey is slamming the president and defending the
bureau's use of a secret informant on the russian investigation. mr., he said that using a secret informant is tightly regulated and central to protecting the country. dangerous time thoseur country is led by who alive a anything and that by those will believe anything. organization is accelerating its efforts with nine countries that neighbor congo to try to prevent the current ebola outbreak to spread from be on the border. thedirector for africa said next few weeks will determine whether the virus can be capped under control. -- kept under control. an active market on the congo side.
we are working with the government. mark: congo health officials began a program to vaccinate thousands of people in hopes of containing the outbreak. firstsecorded milestone on tuesday. in georgia, stacy abrams became the first black woman to win a major party nomination for governor. texas, democrats nominated former dallas county as theirupe valdez nominee for governor, the first latina and first openly gay candidate selected for office by a major party in the state. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ shery: thank you. the house freedom caucus dealt able to speak orion last week,
sinking a republican farm bill that included long-sought welfare reforms. the revolt came over an issue that can -- that has continued to divide the gop conference, immigration. now republicans are bucking party leadership to force a floor vote for daca. we have a member of the house budget committee and freedom caucus. thank you for your time. has the gop leadership done enough to stop the petition? >> now. it's not har-- no. stop.ot hard to it is important to point out that they did not take a page out of the playbook of the freedom caucus. you have 25 republicans pushing a democrat bill. it is an all-out amnesty. the have steny hoyer and democrats pushing the democrat
agenda. republicans, you can't get a more stark difference. they have this queen of the hill procedure where four votes come up. the goodlatte the bill, the way things proceed appears usually by a bill. we have a goodlatte bill on immigration which is the compromise bill which deals with 700,000 kids, in theted daca kids get labor force. the immigrant amnesty bill would be up to 10 million people over a decade. that has not been vetted through the america people and they don't want it. shery: when we say that they take a page out of your playbook is that members feel empowered to speak against congressional leadership. ahead andtually go
should to this petition, they feel repercussions for it? >> and again, i would use different language. it is not emboldened to go against leadership. leadership promised us the majority on any bill goes forward. we are not going against leadership. we are going with what leadership said. they said they would put the goodlatte bill on the floor. paul ryan said that he would run all of his bills through committee. so we're not going against. we just want to keep our word. we are not going against leadership. we are saying hold folks going against the republican platform and our promises to the american people, keep them honest. we are just staying true to the american people and the promises we made on the republican and trump through bernie taking care of the american citizen.
bernie was winning until the democrats rigged it against him. the powerful issue that the middle class, the working person totally gets, but the cheap broadcrowd differs with a swath of americana on that. david: explain something to me not having been on capitol hill, . if the goodlatte approaches such a good approach, you just said the middle class wants it, why do you have to hold the farmers hostage? why do you have to hold the food stamps hostage? when i bring it up separately? >> i think you just missed everything i said. that is what leadership has promised. that is what we want to do. no one is willing at the hostage. we promised we would bring the goodlatte bill for a vote. it has not come up. it's been six months. no one is holding anything hostage. we just want everyone to keep their promises to the american people and then it is all fine
and dandy. it does have the votes. then we will -- very: i'm turn to listen carefully. it. promised to do so why vote against the agricultural they'll -- agricultural bill? don't you trust them? >> is not a matter of trust. -- it is not a matter of trust. they just haven't come through on this. david: but they promised you they will. shery: i believe june 3 as well. >> that just came about lately>> . that was not the promise prior. we were promised a vote on goodlatte after the cr several months ago. the key trigger point was not the freedom caucus on this issue. the timing could not be more clear. when the discharge petition took s wavey 25 republican steny hoyer and democrats, that change the map, the timing, the
tone, when you have 25 republicans going to push the democrat platform. that's a problem. that settles the house floor. the freedom caucus has been working all year with a caught -- with the budget. we did tax cuts. i was messaging with the conference, a good team, huge success. african-american and hispanic and up limit is at historic lows, optimism up to 70% now. all the political polls are shifting our way. we don't want anything to cut in the way of that. so let's follow regular order, which means you put a bill on the floor, the good that bill. the other group does not have a bill that would forward. that's no way to run the shop. that is all we are asking for. david: i always look forward to having you on. it is a good time because your straight talker. still ahead, discussing
shery: breaking news out of turkeyshery:. raised the liquidity rate from 13.5% to 16.5%. that led to the lira jumping 1.8%. it was falling to a record low. at 4.58.e a rise 1.8% the turkish central bank raising the the gritty rate to 60.5%, but keeping other rates unchanged. this coming as the central bank was supposed to meet on june 7. but with the lira sliding to record lows, they had no choice but to hold another extraordinary rate meeting.
david: president erdogan does not like raising rates. he thinks it will lead to inflation. he said he should have more of a say on it. i've seen an internal report that some people within turkey were concerned that 4% would not have been enough because the markets were expected so much. looks like the lira has moved stronger. shery: the lira now on course for its worst month and i get -- in a decade. now we see it gaining ground as a central bank move. erdogan longt opposed to interest rate to takes, saying he was morris possibility for monetary policy if he wins the g20 for election with no cover for investors. the june 20th election with no cover for investors. let's bring in michael mckee to break this down.
this was a surprise move, but something needed for turkey. michael: when your currency is falling, the first move you make is to raise interest rates to bring money back and country. obviously, we are getting a knee-jerk reaction. but how long does it last and how long do people continue to put money in the country and is the lira continue to strengthen? this is a self-inflicted wound. this is not the same kind of thing we saw back in the asian financial crisis, when there was a lot of contagion. this is all about erdogan and his monetary economic policies going forward. investors do not have a lot of confidence. one of the things he said is he would play more of a role with the central bank. he has adopted this view, sort of a fringe economic view that, if you lower interest rates, it will lower inflation. nobody really believes that. instances where frontier markets with very
strange economies saw something like that happen, but no instance of any developed economy doing that. if he's planning on doing that, that is telling investors they do not want to be any part of it. it causedargentina, people to lose faith and they had to ramp it up dramatically. will this be enough? enough. it would not be you would have to ask a currency trader. but once you go down this road, it tends to evaluate. if you want to -- tends to devalueate. in thailand, they could not defend in 1997. investors had no faith at all. we have seen that in the past in argentina. today, it-- argentina is still losing ground on the peso, but it is slow.
you some safety or guarantee for investors. i remember that time in argentina and nearly 2000s. that affected the entire region. we have seen the move in turkey, putting it on course with the lira, gaining ground. the lira pairing back some of its earlier gains. thank you for breaking that down for us with a move fromhe central bank raising their keyrings to 16.5%. trump up next, president throwing plans with north korea next month into greater uncertainty. this is bloomberg. ♪
pres. trump: let's see what james comey has to say. i'm assumed -- i is him he is covered in the report. if you look at what he said, all the lies, all the fiction, i think he has a lot of problems. i don't want to get into yet, but i will tell you after we look at the proof, would he know? i would certainly hope not. i think it is going to be pretty obvious after a wild. we are going now to talk about policeith the great officers to we are going to long island. are you coming with us? no?
it is going to be very exciting. >> [indiscernible] pres. trump: no. we are not undercutting. we are cleaning everything up. this was a terrible situation. what we are doing is we are cleaning everything up. it is so important. what i am doing is a service to this country. i did a great service to this country by firing james comey. excuse me, a lot of people have said it. and a lot ofhe fbi those great people working at the fbi, they will tell you, i did a great service to our country by firing james comey. >> [indiscernible] pres. trump: i want them all to get together, and i want -- everybody wants this to be
solved. a lot of bad things have happened. py now call it by gate -- s[ date. hopefully they will be able to work it out amongst themselves. >> [indiscernible] pres. trump: nafta? excuse me, nafta? your auto workers and auto companies, in this company -- country, will be very happy with what is going to happen. you will be seeing very soon what i am talking about. nafta is very difficult. mexico has been very difficult to deal with. canada has been very difficult to deal with. they have been taking advantage of the united states for a long time. i am not happy with their request. in the end,ell you, we win. we will win and we will win big. we will get along with mexico, with canada, but i tell you, they have been very difficult to deal with.
they are very spoiled because nobody has done this. you, what they ask for is not fair. our auto workers are going to be extremely happy. >> [indiscernible] pres. trump: we are going to see what happens in singapore. we will see. it could it could very well happen. whatever it is -- we will know next week about singapore. if we go, i think it will be a great thing for north korea. >> [indiscernible] i can't hear you. >> [indiscernible] do you think that will happen? someday, a date will happen. it could be june 12. someday, a date will absolutely happen. and could very well be jim 12:00
p.m. we will see. we will know next week. >> [indiscernible] pres. trump: they will all be in the room tomorrow. we will see what happens. what i want is i want total transparency. wait. you have to have transparency. even they probably want transparency. supersedess issue the party. this supersedes republicans and democrats. from thent from rod, fbi, from everybody, we want transparency. way, they their own are obstructionists, but even the democrats, i really believe, on this issue, it supersedes. they want transparency too. thank you. that was president trump making comments on his way to long island while he will participate in an immigration roundtable. president trump saying he wants total transparency when it comes to the department of justice documents, but it was a service
to the country by firing james comey. and also talking about the north korea summit. secretly thenks democrats want the same transparency. amateur that is entirely right. -- i am not sure that is entirely right. shery: we heard that could actually be when it comes to big news to automakers, china reducing to 15% which we have already seen. who knows what he is talking about when it comes to nafta? david: we will find out. let's get the headlines with bloomberg first word news. mark crumpton. mark: thank you. secretary of state mike pompeo says the trump administration will not tolerate russian the 20 18ce in congressional midterm spirit secretary pompeo told the house foreign affairs committee today in menstruation will take what he calls, it appropriate countermeasures to fight with you calls, continued efforts by russia to meddle in this november's vote. on the subject of north korea, mr. pompeo said he will walk
away if the right deal isn't on the table. >> it is my view that we have made zero concessions to chairman kim to date. we have no intention of doing so. mark: the president schedules -- scheduled meekim jong-un but u.s. officials haveexpresset the planned meeting in singapore will go ahead. the president expressing that doubt in those comments moments ago as he headed toward the helicopter to go to angers to come to long island. tensions soar between india and as rivals soldiers shelled dozens of villages and border posts for six straight days. seven people for killed, including six civilians in the violence but both countries blame on each other. the fighting is -- has sent tens of thousands of villagers fleeing from their homes. in hawaii, officials are taking steps to prevent toxic passes from seeping out of wells after lava from the kilauea volcano
entered a geothermal plant. crews have plugged in the progression -- of the wells with cold water and mud to counter the pressure of volcanic steam. officials say a spike in gas levels could prompt a mass evacuation. mount rushmore is getting a $14 , but thepgrade president's heads one of the. it will get a new streamlined avenue of flags which will be placed along the walkway. other upgrades includes the installation of lanterns to reduce light pollution. global news, 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. shery: thank you. we just heard president trump saying he will know next week whether the singapore summit with north korean leader kim jong-il and is still on. mike pompeo told a house panel that the u.s. would leave negotiations with young yang if
the mmit goes the wrong direction. we have my view that made zero concessions to chairman kim to date and we have no intention of doing so. shery: here with more insight into the situation is stephen noerper, senior director for policy at the korea society and a professor. welcome to the program. first of all, do you expect the june 12 summit to go on as planned? stephen: the odds are probably that it is in favor. we will have to wait and see. clearly, the administration is responding to kim jong-un's declaration last week that unilateral activity should not be expected. we will have to see how this plays out. the communication is clear from washington to pyongyang. this happens, the south koreans are pushing hard. the north koreans and donald trump have this in their interest. shery: president trump boarding the plane. he is headed to long island for the immigration roundtable. when i was covering the six
party nuclear's -- nuclear talks a decade ago, we kept talking about talks for the sake of talks. if north korea and the u.s. are not on the same page when it comes to complete denuclearization because we are now hearing from pyongyang that they want to be accepted as a nuclear power, is it worth going into talks? stephen: in some ways, this is different from past diplomacy's. it is more like a meeting of ceos. if things are lined up and there seems to be a deal to be gained, you will see trump there with kim jong-un. if they feel the north koreans definition of denuclearization, which is different from the united states definition, does not come into line, then maybe they will hold off and do it later. david: what role is john bolton playing? he went out of the gay go and said we will not give them -- went out a week ago and said we had hostile noises. the president is saying, no, maybe they want to do it step by
step. is john bolton a constructive force? stephen: the north koreans are saying he is not. they have had a difficult history with bolton in his former roles. they have signaled their disdained for bolton personally. one would think that though bolton has made these comments and invoked a libya style comparison which they do not like, that they may have found some other excuse. basically because of this definitional issue. has been suggestion made that economic benefits would be off until progress was made. they don't like the sound of that. it will require negotiation to get them to the table and have those tubing leaders meet. david: there has been focus on moon jae-in. what about china? what is their role behind the scenes in shaping this? zteicularly for example the issue. stephen: xi jinping has been active on this front. he has been met in the course of
a month and a half twice with north korean leader kim jong-un. donald trump yesterday suggested gave theas xi who north koreans too much confidence. that there would be economic benefits if talks did not go the way they wanted. that might have created some situation. the chinese have been quick back to say no, we support this process. we will have to wait and see. all important are very critical as we go forward. shery: that was interesting to me. hearing president trump say kim jong-un's attitude changed after his second visit to china, and meeting with xi jinping. president trump also yesterday, not hesitating to provide security guarantees for kim jong-un, saying he will be safe, we will guarantee his safety, they will be safe and happy. verbal assurances are not enough. what will pyongyang want to see happen? stephen: they want economic benefits and it wants diplomatic normalization with washington. shery: security guarantees and
the force -- forms of stopping military drills and south korea, is that what they want? stephen: maybe they will want to talk about u.s. troops. it's not at the table. we will see what they get to. they want basically what they say is a lack of a threat directly to them. they want the new u.s. nuclear umbrella removed from the peninsula and they may want a downtick in u.s. forces. shery: how do you do that without undermining the alliance with south korea? stephen: that's exactly right. soft is driving this process. stakeae-in has a lot of on it. there is a relationship that goes back in this. alliance is critical. it is probably critical to make a go forward. it will require some balance on the part of seoul and washington. days,y in the next few soul will be actively contacting both pyongyang and washington to see if this can happen. moon wants us to go through. david: thank you for being with us. that is stephen noerper, senior director for policy.
♪ shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. immigration remains a tough sawe for capitol hill as we when the agricultural bill went down to defeat because it did not address the immigration and the goodlatte-mccaul built we welcome the author of the bill. featuresan goodlatte the house of judiciary committee. he comes from the capital. welcome. good to have you with us. rep. goodlatte: it's good to be with you and sherry.
david: give us a sense of where you are with your proposals. i understand you are considering changes. a vote whatyou got will they be voting on and when will they be voting on it? rep. goodlatte: we have been working for months to make improvements to the bill, to continue to gather support. there have been frustrations on both sides, both the folks who have filed a discharge petition, and the freedom caucus that want my bill brought directly to the floor. the speaker announced yesterday it will be back -- be brought to the floor during the week of june 21. there are serious negotiations going on with all of these parties to try to come up with a path forward to get something to the floor and pass it. it is my hope the pressure of time and a date certain will bring people to focus on this where they have not focused on it for the last few months. dacaportant issue from the
recipients and giving president trump and the administration the tools they need to secure the border and make sure that loopholes are closed when people get inside the interior of our country and to address the issues of chain migration, and the so-called visa lottery. all of which are addressed in the legislation that i offered chairman of mccaul, the immigration subcommittee, and congresswoman mick sally, the chairman of the board security. david: do you believe you have a firm commitment from your leadership to bring it up for a vote? if so, what does it have to do with the agricultural bill? i voted for the agriculture bill. i believe these two issues should be kept separate. some did not believe that the legislation was coming forward. and took the position that they took. we are where we are. i believe both of these bills, the immigration and the agriculture farm bill should be brought back up and addressed.
there is one component of my bill, the immigration bill that does relate to agriculture. that is an agricultural guesswork -- guestworker program. this is a sector of the economy where we have a huge number of people who are not lawfully present in the country working. we need to change that. and get a legal, workable program part of our proposal. it is not part of the farm bill. shery: give us more details on that immigration bill. on thell get voted on third week of june. because there will be some changes. what will you -- what can you tell us about that and how different is it from your origal bill? rep. goodlatte: we have made a number of changes to the agriculture provisions in the bill, to make the touchback provision work better, to make sure that people are confident that the number of workers available under this program which has a cap on it will be sufficient. and we also have made literally
a dozen or more other changes to wet heart of the builder have also focused on changing the daca program to make it more attractive for daca recipients. so that they can have a permanent program where they renew once every six years, and it has what we call him -- existing pathways to citizenship. nothing that is specially set aside or the daca recipients. but if you qualify for another pathway to a green card and citizenship, we allow that in our bill. it is not allowed under the current obama created daca program. it is a lot better than what folks are utilizing right now. they are covered by the uncertainty of a court case that has not yet been decided. this would be a permanent resolution of this issue. shery:this would be a permanent resolution of this issue. shery: you have doubled the renewable legal status from three years to six years, what about expanding the number of people who can be eligible for the daca program? rep. goodlatte: that is being discussed. there are those who are eligible
to apply for the daca program do not apply. a lot of controversy around whether they should have applied or not applied. doimposition is when they not apply, they were being told by a lot of people, including me, that this program was not a legal program. i understand why they didn't apply. i think we could expand that to cover people in those circumstances. making sure that we have adequate provisions in the bill to avoid fraud, which is a serious problem in this area. proving when you actually were in the country, and what your status was. david: i want to turn to another response ability, with the respect to the russian investigations. we have heard from more than one of your colleagues that they might like another special counsel appointed to one to look into the conduct of the fbi and the justice department. with respect to investigating the russian investigation,
particularly hillary clinton's campaign. are you in favor of another special counsel? rep. goodlatte: i have been calling for months for an independent special counsel to look into how the fbi conducted the investigations into both the clinton campaign and the trump campaign in 2016. then moving on into 2017. there were many revelations back then. what i consider to be highly respects, some astonishing actions taken by former fbi director comey to hold a press conference and announced all the things that hillary clinton had done wrong, and then announced they were not going to indict her. were a democrat, i would be concerned about the fact that 10 days before the election, he got up and sent me and others a letter saying he was reopening the investigation right before the election. those are two of many questionable actions taken by the fbi during that time. and the so-called struck page text, they have revealed an
extraordinary bias on the part of the fbi during that investigation. the contrast between how the clinton investigation was conducted and the trump investigation is shocking. we don't want that to happen again in 2020. david: finally, as you know, the justice department has said the inspector general should look into that. the president is referred to that. when there are allegations of misconduct with a government agency, the inspector general takes a look at that. why is that not sufficient? rep. goodlatte: we are looking forward to the report which has been due for a few months now. we are hopeful we will see it here within the next few days or weeks. that will help to guide our own investigation. the inspector general has limited powers. we think that this requires somebody who is independent and outside of main justice. the attorney general took that via a couple months ago pointing mr. huber, the united
states attorney for utah, to conduct his own investigation. he is outside of main justice because he is located in utah. of theis not independent department of justice. therefore, we think that independence is important ultimately. we are anxious to see what mr. huber, and what inspector morro it's produced. my opinion is we ultimately will need an independent special counsel. shery: mr. chairman, thank you so much for your time. congressman bob goodlatte, chairman of the judiciary committee. rep. goodlatte: thank you both. and your viewers. shery: coming up later, don't peer withcial peer to david rubenstein. during the transition of the president of the united states, donald trump set -- sent out a tweet saying your biggest product, the f-35, was too expensive. so you did give him a discount? >> we drove the price down. we got the deal done. we did it in an accelerated
♪ shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. breaking news. a new york federal judge has ruled that president trump cannot block users from his twitter feed. the first violates amendment as his twitter feed is a public forum. the first amendment says the government cannot curtail speech. it is saying basically donald trump is part of the government so if people want to express their views on twitter, it's ok. it is not one he stopped once he became president. it is one he had before. he stayed with it. once he became president, it becomes public. shery: i think some people will
be disappointed. if you notice some people who are blocked by the president, would wear it as a badge of honor. which would be one ofhe thing as the opposition perhaps. just to go technical, it is much as freedom of speech. it includes the right to petition for redress of grievances to the government. i would not be surprised if he says, that is one of the ways you redress the grievances. to retweet the president. shery: if he couldn't block people, he could mutate them. there is an option there. david: that is a fascinating story. it is time for our stock of the hour. db shares are falling once again as the ceo warns his turbine business is struggling. here with the story is our reporter. this poor man cannot get it right. do any favors for ge. he's speaking at the conference. shares plunge. worst day and five months. this is because he said ge issues have lasted since he took the helm. he -- it has been the worst performer on the dow.
he says there is no easy fix. they are not going away anytime soon. not something investors want to hear. he says he is expecting business in its gas turbine products market in 2019 and 2020. he says he expects the market to be "soft." why that pie chart of is not a good thing. that makes up 29% of ge's revenue. you do not want to see weakness in the market which does include these turbines. him coming out saying this in the presentation in addition to saying things about that surprising insurance chart they took in january, that skewed investors. he says the problems will probably not go away in the future. that is not good news to investors. shery: fair to say, ge does have units that are strong still. like aviation, health care units. kailey: he did say those units are doing better. trying to put a positive tone on these things. power is a big heavyweight here. you can't dilute to that too
much. david: we will continue to follow ge. thank you so much, kaylee. -- you can sign up for the balance of power newsletter at bloomberg.com/politics or get the latest on blow -- on global politics in your inbox every day. it is etf iq,up, the first show dedicated to the change rate of fun spirits carla who looks at whether strategies are that smart after all. if you missed out on any of the charts we showed threat the program, gtv go is your function. you can save them and use them for future reference. this is bloomberg. ♪
♪ scarlet: i'm scarlet fu. this is "bloomberg etf iq." we focus on the access risks and rewards offered by funds. just how smart is mark beta? -- is smart beta? we ask dan draper to defend smart beta. a founding father of etf looks to infinity and beyond for out of this world returns to what is the thinking behind a space etf?