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tv   Bloomberg Markets Balance of Power  Bloomberg  June 6, 2018 12:00pm-1:00pm EDT

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balance of power." reportedly offered secretary ross $25 billion more in annual imports from farm products, coal, fuel, or less than the $200 billion the u.s. demanded. the president's top economist says they may want separate agreements with canada and mexico. we hear from the top advisers for the leading candidate to become the new mexican president this july. well-known candidates make it through in the candidate -- california primary as democrats fight for control of the house in november and we talk with members on both sides about the progress. shery: the u.s. and china are continuing to haggle over trade ahead of a mid-june deadline for
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imposing tariffs on importing chinese goods. asian opportunity boost purchases of american goods while the trump administration is said to be finalizing a deal to revive zte and allow the chinese maker to resume purchases from american suppliers. the white house possible deal for more, we are joined by our chief content officer. i am not surprised that congress members are not happy about this. what did the u.s. get out of the zte deal? would more u.s. products be contingent on tariffs. >> this is not just about zte but about presidential power. in congressarrative on a democrat and republican side that tariffs and trade policy should go through congress, and not be done with executive fiat. shery: especially when you consider a company like zte
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violated u.s. sanctions repeatedly and lied about it. what message would that send to the rest of the world? >> exactly the point they are making. a group of senators are trying to come to the president and trying to talk him out of taking this executive action on zte and allow for a toughening or legislation to make these kinds of exceptions go through or be subject to congressional approval, rather than allowing the president to do it by himself. david: over the years, congress has largely ceded this area to the president and let the president do what he wants, is there a prospect there could be a structural change because of these actions and congress could take back the responsibilities? >> it is difficult to say in this politically charged environment what the congress can and cannot do. is a bipartisan effort to rein in the president's power to execute trade exemptions and impose tariffs like the ones donald trump is pointing to do.
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, he lovestrump's side to exercise power absolutely. the narrative over pardons is an example. he can execute trade policy without involving anybody else is attractive to him. david: he is talking about exercising power over nafta. saying maybekudlow we do not like nafta and we like bilateral independently with canada and mexico. >> it is difficult to tell what the policy of this administration. as administrations have had disagreements, we have not heard about them publicly but we are now. there is the larry kudlow faction and the steve mnuchin faction that are more globalists , and there is the more conservative wilbur ross faction. who will come out on top is playing out before our very eyes.
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shery: i am confused. david: you are not the only one. [laughter] shery: nafta much be approved by congress and paul ryan said there was a deadline of i believe may 17 but we are past that. >> there is broad consensus that any new nafta deal could not be passed before the next session of congress. there is not enough time. anything they do come up with will have to wait until after the midterm elections. that could turn out to be problematic if the house is able to overturn the gop to democrats. shery: this overhaul you mentioned, there is legislation and secretary mnuchin backs the legislation, instead of executive action, especially with chinese investment. >> that is the reporting we have, steve mnuchin is supportive of the legislative route, rather than executive order that would freeze zte to
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buy u.s. equipment. a national security concern. this is the factional's asian -- factional part of the debate in the white house. david: a lot of people inside the beltway, who cares about this? issue, politically, in november, will this be a large election -- issue in the election? >> probably not. in those midterm elections, it is local issues that carry the day. brought issues like trade policy are esoteric -- broad issues like trade policy are esoteric, it is not, the economy, are you better off than you were 12 months ago? if the gop can take credit for the good stuff, they could do well. but there is a rising feeling the democrats may do very well. david: thank you. our chief content officer.
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let's check in on the markets with julie hyman. rally, although no longer tech in the driver seat, financials leaving the game in today's session and that means relative underperformance for the nasdaq but it is still up and out performance for the s&p and especially the dow. highlighting individual movers, -- there ceo, day and cofounder jonathan bush is stepping down after misconduct allegations involving women. he has been under pressure from elliott management, which early last month proposed buying the company for $160 per share and his departure could open the door to a potential takeover. cigna jewelers rallying, they showing sounds -- signet inelers rallying, flat sale the first quarter, a 12% drop one year earlier. 19% withs are surging
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substantial short interest in the stock. rising as oil falling after they announced a sale which will fund $3 billion in additional share buybacks. 1.25%, after an unexpected built in the weekly oil inventories report, the dollar is under pressure today as the trade deficit narrowed to the lowest in a while. oecd positive in the short-term but have risks over the longer term with copper at a three-month high. technicians are watching the chart and weak is rising. germany is heading for its worst rain harvest in years. currency trading, let's look at the bloomberg and the peso, as we talk about the prospects for nafta and whether it will be separate bilateral negotiations
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instead of a new nafta agreement, we have the peso, the dollar-peso, the dollar trading near a one year high versus the peso for the peso with a one year low versus the dollar. on these nafta concerns. , time isming up running out for the gop house leadership to head off a immigration as moderates continued their push for a floor vote on daca. we will talk to leonard lance, one of the first republicans to sign the petition next. this is bloomberg. ♪
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is "bloomberg
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markets: balance of power." i am shery ahn. david: i am david westin. >> president trump has been advised not to offer north korea's kim jong-un any concessions in the next week's summit in singapore. the white house wants kim jong-un to commit to a timetable to get rid of his degree weapons and u.s. officials say president trump will walk out of the meeting it if it is not going well. if it does, he may invite kim jong-un to a meeting at his florida resort. angela merkel is warning she will not accept anything that waters down earlier agreements when world leaders meet at the g7 summit later this week. she says she is expecting tough discussions over issues including the u.s. withdrawal from the paris climate accord, the iran nuclear agreement, and steel and aluminum tariffs. she addressed the german parliament today, two days ahead of a québec summit. groups areights
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suing the congress the -- commerce department to try to stop plans to add a citizenship question to the u.s. census for the first time since 1950. the american civil liberties union and others claim the question intentionally discriminates against immigrants to increase fear in the community's and will cause census participation to drop. the decision to sentence a former stanford university swimmer convicted of sexual assault to six months in jail instead of a long prison term has caused a california judge his job. he defended his sentence of rock turner, citing -- brock turner, citing age, a clean criminal record, and he and the victim were in talks to get it. he is the first california judge to be recalled since 1932. 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 am mark crumpton. this is bloomberg. david: thank you.
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democrats appear to have dos a bullet in the california primaries despite concerns that the sheer number of candidates would cancel one another out. long way until november and the path for democrats to take back the house goes through suburban republican held district in california and new jersey with hillary clinton carrying in 2016. 7th in new jersey, our next guest represents, leonard lance, a member of the house energy and commerce committee and joins us from capitol hill. thank you for being back with us on bloomberg. you got nominated last night and will run on the republican side. you have an opponent. as you look to november, for your district, how do you see it? >> i believe the people in the district i surf want bipartisan cooperation to move the nation forward. why i am a i have -- member of the problem solvers caucus who worked in a bipartisan fashion to try to
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solve the issues confronting this country. david: i am not an expert but i did rough math looking at the votes, you won by a landslide. total number of republicans voting in your district in the primary and compared to democrats, quite a few more democrats that turned out to vote. does that tell you anything that may be a cautionary tale about likely turn out come november? >> the turnout was much higher for the democrats at the presidential level two years ago. independents in our district tend to lean republican but not all independents. there is a slight voter advantage for republicans in the district. this election is true of almost all in new jersey will be determined by independent voters. in the district i serve, they tend to be republicans -- to a slightly a greater extent than democrats. hillary clinton carried our district by 3000 votes two years
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ago and i was honored to carry it by 38,000 votes and i think my views are the views of the overwhelming majority of the rest of the people i serve. shery: what do your constituents care about come november? >> my constituents care about moving forward in a bipartisan capacity. not engaging in over-partisanship. from my perspective, the extreme right and the extreme left do not have the answers for the nation's greatest problems. we should govern from the center out. i am a moderately conservative republican i think -- and i think those are the views of my constituents. shery: you are one of the first republicans to sign the daca discharge petition. how many signatures do you need to move the immigration proposals, and when do you think you can get them? >> we need three democrats and
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two democratss or and three republicans. we are close and most democrats have signed, three have not and two indicated they will and if all three do, we need two republicans -- or three more republicans. we are close. david: let's assume you get it and the house approves it, what with the senate approved? what version will make it through to actually become law, or end up on the president's desk? >> there are likely to be four proposals on the floor of the house, one from the chairman of the judiciary committee, a proposal from the democrats, a placeholder proposal by leadership, and the one i favor is the bill from congressman heard from texas and congress been agholor who is a gimmick --
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-- democrat from california which provides a path to citizenship for dreamers and increases border security. i think it is an excellent compromise and i am a cosponsor of that bill. david: we understand your position and why you take it, if you get that through, will that be important to your constituents and help them decide come november. they will vote for? issues. one of the i do not represent a district where there is a considerable immigrant population but there are immigrants in our district. at townhall meetings i have felt and i hold them regularly, the immigration issue is an issue that is addressed. i answer the question in a way i think is responsive to my constituency. that includes eight have to citizenship for dreamers -- that includes a path to citizenship for dreamers, they came harris children and i hope -- they came
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here as children and i hope we can do that. i want greater border security because i do not want to go to this a generation from now. in 1986, we did not address the challenge at the southern border. shery: this petition goes against your leadership. will that cause a problem ahead of the midterm elections when you need unity or the gop -- for the gop? >> i think it would be for the benefit of republicans on capitol hill if we placed on the floor and in the senate a bill like this one. i am hopeful the president would sign it. i think it would help republicans because we currently holds a majority of the house and the senate. david: congressman, always helpful to hear from you, congressman leonard lance, republican from new jersey and member of the house energy and commerce committee. athena health shares soared as
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their ceo leaves. does that mean they may sell the company? we will talk about that next. this is bloomberg. ♪
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david: this is "bloomberg markets: balance of power." i am david westin shery: i am shery ahn president trump will have a bill to reform the the a -- v.a. in an effort to create a more flexible and efficient system. we are seeing vice president mike pence waiting for the signing. hearing from axioms that president trump as part of alice johnson, the person kim kardashian met president trump with about, a great-grandmother serving a life sentence for drug trafficking. the president is reportedly -- reportedly parted alice johnson
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and we will bring you live pictures of the ceremony when president trump participate in the signing of the v.a. mission act. david: kim kardashian is influential. shery: even in the oval office. david: athena health, elliott management offered to buy it to change management. a got a twist today as the ceo jonathan bush that it got its wish today as ceo jonathan bush was leaving over allegations of inappropriate treatment of female employees and maybe the company would be for sale. welcome, scott. it looks like elliott management got its way. >> not necessarily in terms of buying the company at getting the ball moving on a potential sale. this will definitely put the company in play. david: they mention management and needing to change management
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when they said they would offer to buy the company. they got the management change. >> there was a general belief that athena health had hit a ceiling in its ability to continue the way it was. a great company and worth about $6.3 billion. jonathan bush, over the last two decades, but recently several reports including our own starting to surface about some inappropriate behavior, particularly when it comes to female employees, and also disturbing allegations about his personal life in terms of an assault on his wife more than two decades ago. one decade ago, sorry. shery: ever-glory says athena health has more than 90% chance it will not remain an independent entity after this news. what does this mean for athena health going forward? >> it may not plan to elliott -- elliott's fans, there may be an -- hands, there may be an open
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auction, they could be worth $180 for sure. it is trading around where the elliott offer is, $160. most people arguing the proposal put forth as elliott is a basement on which the evaluation would be built. said the samere thing, it will probably be sold for higher, given the interest by people. in the meantime, until they find a new ceo, what will happen to athena health? who is leaving it? -- leading it? >> jeffrey immelt was appointed chairman a few months ago. he will be taking over as executive chairman. the cfo will take on some additional duties. space,tell us about this something in the cloud your doctor can handle records.
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who else is in the space and who would be a likely buyer? >> some of the names who have surface are who you would expect , major software companies like microsoft, oracle, even salesforce. there will be some financial players interested, intentionally doing a leveraged buyout from a private equity firm. david: a fair amount of integration in the space, aetna and cvs, what it be possible for an insurance company, medical insurance company to say that makes sense? >> that is another possibility. thought to be one of the best companies in this space. there generally will be broad-based interest and i think it will be a heated auction. david: a break -- is it a big growth market? >> yes, everything is moving to the cloud. medical records are not anything new. data and the information they collect is valuable to other people.
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this is a company that will be attractive to a lot of potential buyers. shery: who are rivals -- rivals? >> yes. shery: the latest on athena health and their ceo stepping down your president trump that stepping down. -- stepping down. president trump will sign a bill veteranshe administration to create a more flexible and efficient system. we will bring you that coverage live. ,heck out the terminal live go president trump expected to participate in the signing ceremony of the v.a. mission act of 2018. this is bloomberg. ♪
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♪ --ry: you are taking a live a live look at pictures of president trump signing things
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for the ba -- va. effort to create a more flexible and efficient system. you can watch the full event on life go on the bloomberg. of 2018 mission act passing the senate in may by a vote of 92-5. also overhauling existing veterans health care regime. let's get a check of the markets. we are seeing the dow gaining a percent, more than 200 points. back at the highest level since mid-march after ending unchanged in the last session. ,he s&p 500 is also higher being led by financials and health care companies. we are seeing a more risk on move continuing today. treasury yields gaining ground. the focus still on trade developments, as well as slowly shifting to next week's fed meeting. david: for bloomberg first word news, we turn to mark crumpton. mark: thank you.
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vladimir putin says the u.s. will have to offer north korea solid security guarantees if it wants to strike a denuclearization deal. in an interview with a chinese broadcaster, he said he hopes that next week's meeting between president trump and kim jong-un will bring positive results are he called mr. trump's "courageous amateur decision to meet with kim." united nations security council's is calling on all parties in ukraine to recommit to a 2015 peace agreement and is expressing what it calls grave concern at deteriorating security in the volatile region. russia has been in a tug-of-war moscow'sine and since annexation of the primary and peninsula. -- primary and peninsula. a new report shows president obama tried to sidestep
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sanctions against iran after the 2015 nuclear deal was already in place. an investigation by senate republicans release today found the treasury department issued a license in 2016 that would have allowed iran to convert more than $5 billion worth of its into euros by exchanging them first into american dollars. the obama administration reportedly approached two u.s. banks about making the refused.n but both in london, about 100 firefighters on the scene of a large blaze at the end are in oriental hotel. the project ind 19. . the city's fire brigade says the cause is unknown. 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. democratic hopes to take back the house may have gotten a major boost yesterday with the
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party appearing likely to avoid their worst nightmare as democrats appear to have survived california's top two jungle primaries. here to give more insight into what this means for the democratic party as a good close it the midterms is congressman ben lujan, democrat of new mexico and the chairman of the campaign committee p he is with us from washington. thank you very much for your time and first of all, our congratulations in order to what did the primaries yesterday mean for democrats going into november? rep. lujan: good to be with you today. last night, we were really excited and encouraged by the turnout results, not just in california, but in new mexico, in new jersey, and iowa. in all eight states where we had primaries across america, but especially as you look to turn out in iowa, we saw turnout what --igher than we higher than what we saw in
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recent memory. that is encouraging as we go into the general. especially with the california primaries. we knew these were always going to beat half. each and every one of them had their unique challenges. where we are a stunning reporting's, democrats do not get boxed out any of the top two races. that puts us and a strong place to be able to win back the majority in the u.s. house of representatives. sayingsome people are the blue wave might be dwindling. from what you sigh yesterday when it comes to the turnout, can that be sustained until november? rep. lujan: i never said this would be easy. we will have to fight for every inch. the reason we identified 104 districts across america was because we knew we had to have a strong and robust battlefield to be able to pick up the 23 seats needed to win back the majority of the u.s. house. i'm encouraged by the grassroots we have seen across america. groups like indivisible, swing left, the strength we have seen
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coming out of the women's march come of a march on science, the clarity of the students from parkland are speaking about gun violence. we are seeing momentum all across america, conversation is changing. especially women candidates last night running as democrats did very well across the country. i'm encouraged as we had to november. we need everybody to do their part if we are going to get this done. david: for the democrats to take back the house, does a selection need to be about donald trump as president? if so, does that mean it might be slipping away from you? his poll numbers, while modest, are up from where they were. rep. lujan: politicos to the democrats have consistently had advantages along the way. the individual polling we have come a district to district, shows the strength of our candidates. there is nothing jim it -- generic about our candidates. there are so many incredible candidates who have served our country's -- country.
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local leaders are connecting with voters across america. when you look at the strength of what we can get done going into this election cycle, i think we are in a strong place. our candidates, they are not going to talk about president trump so much. i think the american people are tired about talking about him. let's be honest, no one is going to talk about president trump more than he will. while our republican colleagues are having to explain for every investigation or scandal or ugly is sending out, democrats are talking about the thatg economic realities families have to look towards. families across the country know that wages and salaries are not keeping up with the cost better -- costs hitting them everyday. with the tax package hurt hard-working families more than they ever promised to help them. as long as we continue to connect with the american people, around strong economic
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conversations, we don't have to talk about the president that much for we are in a strong place going into november. david: you need people to come out to the polls and vote democrat. you need people to show up with their pocketbooks. where are you on money and fundraising compared to the republicans? rep. lujan: with what we can control, as the chairman of the national -- the democratic congressional campaign committee, we have been able to out raise the committee along the way. is coming of that from grassroots supporters. 6% of what we are raising comes from an average contribution of $18 from grassroots donors across america. when you look at outside super pac spending, we know we will not be able to keep up with republicans. by my count, $950 million has been committed by republican super pac's and dark money groups toward house races. we have our work cut out for us. it will be one of the challenges we face. with the grassroots energy and the turnout we are seeing across the country, we are on solid footing.
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doi have always said, if we our part, democrats can win back the majority of the u.s. of house of representatives. earned back the trust of the american people and restore checks and balances. david: 950 million dollars, who would've thought for a congressional campaign? that his countrymen -- congressman ben ray lujan. shery: president trump speaking in the rose garden arena. he is signing a bill to overhaul the v.a.. president trump saying the bill will provide choice and freedom to veterans. you can watch the full event online. this is bloomberg. ♪ pres. trump: it is less expensive for us, it works out better, and it is immediate care. that is what we are doing. that is what we are doing.
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breaking news on alphabet. shery: the board has voted down on pay that would be tied to congress in workplace diversity. employees had teamed up with investors and a push to tie executive pay to progress and work with diversity recut -- requesting off of it consider those planes. this proposal was presented at wednesday's annual shareholder meeting in mountain view, california on behalf of asset management which submitted the measure. the board has voted down this proposal. toid: we are going to turn mexico. mexico's presidential election is july 1. polls show a widening lead for leftist candidate andrea's manuel. should he win, what will his policy be toward the current after negotiations? his top economic adviser -- adviser spoke to michael mckee in an exclusive interview. towill we are looking for is
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improve nafta. we are not really looking for a bilateral agreement with the u.s. or canada. that is what we want to we want to have a nafta 2.0. not enough to 0.5 to we want to better operate nafta. that is what we are looking for. he has appointed someone who has been and charged of those negotiations. the thing is -- what we are looking for is to work with the u.s. and canada. michael: you want canada in the agreement? >> of course. i think this is the way nafta was conceived. that was the right way to go. as a block, america as a region, to have a .ompetitiveness i think that is what we should try to keep and modernize and
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improve. michael: the ministers and has proposed retaliatory sanctions on the end states. does he agree with the sanctions? >> he has said he doesn't want to get into a trade war. starting point. but we also understand the situation. we understand given the imposition of these types on steel and aluminum, something like that had to be necessary. in that sense, we respect the decision of this administration. we support it as a political group. work we would like to together with the u.s. in order to avoid this kind of confrontation. this is something we don't like. this is something we don't want. how do you react if donald trump withdrawals from nafta or gives notification he is going to? we hope if that occurs,
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that will not occur, we expect to see what happens in terms of congress, we will try to seek to establish to try to promote dialogue. i think that is the way to go. if this is the decision and the u.s. congress goes along with that, we will take our decisions. we will check what the balances of that would be, and try to make a decision. really want toe continue with him after. we really want to keep working together with the u.s. and canada. this is what we are trying to work with. michael: would you support the 20% highway to local content at a proposal that mexico has supposedly put forth in the talks? gerardo: everything which is good for the region, which is
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not beneficial to one of the countries, and it works together for the benefit of the whole region, that is something we would support. ,hery: gerardo esquivel economic advisor to the leading candidate and an exclusive interview. time for stock of the hour. brown-forman is the work performer in the s&p 500. down nearly 6% after the company -- already more than 6%, after the company said in its report that tariffs from rep -- from mexico could hurt. more on mexico. brown-forman out with quarterly earnings that were mixed. they beat on eps lately. they did miss on sales. they came in at seven at a 33 million versus estimates of seven digit this -- 700 million.
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a bit of a mixed bag. the company going one step for their talking about the proposed tariffs from mexico. mexico is planning on stopping a 25% tariffs on u.s. tennessee whiskey. and one of brown-forman's most prominent proponents is jack daniels. that is dangerous to jack daniels. it is hard to forecast sales growth to the future with this uncertainty about tariffs. they say if nothing changes, they could see growth of 6% or 7%. because of the uncertainty over trade, it is weighing on shares. david: it is ironic that europe goes after kentucky derby -- urban, and they go after jack whiskey. >> it is one of their high-growth markets. the u.s. is the biggest. we can show you on a bar chart it only has 7% of their total growth. mexico is there fourth-largest market with 5% of sales. it has more thanouble that grth of 15%. it is an area where they are seng gains and you mentioned
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the european union on bourbon. on that same bar chart, germany and france are seeing the team. that is an issue when in this quarter, one of their big sales drivers was a premium kentucky berlin. beingall these brands affected by trade. all this uncertainty that hangs in the air with these retaliatory tariffs is not -- makes you thirsty, doesn't it. david: great to have you with us. shery: coming up, texas representative jeb hensarling weighs in on why he hopes cool or has will prevail in washington. this is bloomberg. ♪ ♪
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♪ back. welcome
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tit for tat tariffs. mexico slammed the u.s. with $3 billion worth of fees on goods including port and cheese yesterday. -- pork and cheese yesterday. chief washington correspondent kevin cirilli met with republican representative of texas jeb hensarling and got his take on the escalating trade tensions. rep. hensarling: i give the president great credit for what he has done in bringing us historic tax relief, historic regulatory relief, rightsizing regulation. i was very happy to go to the white house right before memorial day. to see the president signed into economic growth and regulatory relief act, which does a number on dodd-frank. all of this could be erased by a global trade war. in fact, i saw a report from barclays that said the tariffs imposed upon the eu and those on 90 basis could lose
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points off of gdp, which is what many economists believe the tax relief gave us in the first place. the president will be meeting with global counterparts as well as the administration says they are considering withdrawing from nafta. is that the right strategy? rep. hensarling: absolutely not. not only as a member of congress, but as a texan, i can tell you in texas, we are dependent upon nafta. the bottom line is, for every one job of -- that might be associated with producing aluminum or steel, there are probably a dozen if not 20 jobs that fabricate that steel. i've heard from two different steel firms in texas, one that fabricates it into shelving, others into metal buildings, and they are both concerned about the pricing of their product now. also, unfortunately, what the administration has done, they have thrown a huge wet blanket
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of uncertainty on an economy that otherwise they were responsible for making red hot. the administration has brought .s 3% plus economic growth if the administration is not careful, they will take it away. kevin: that is not just the policy coming under question, it is also the mechanism president trump is using. citing national security concerns as how he has been proposed doing this. do you agree with the use of section 232? rep. hensarling: i don't see it at all. the honda accord is not a threat to u.s. security. what i don't also understand is if we are imposing tariffs on the eu, if you look at the membership in the eu and you look at the membership of nato, they are almost identical. on the one hand, there is a group of countries that we claim are our closest military allies, but then we say no, we can't count on you for steel and aluminum. weyou look at the stats, take the pentagon -- the pentagon takes maybe 3% to 5% of
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domestic steel and aluminum. of domestic steel and aluminum for our defense means you cannot make the case. 232 has never been used in this way. i do not think it is right. i think the administration is on a very, very bad course that again, i think is going to harm our economy and unfortunately, there are those in the white house who believe that trade is fundamentally a zero-sum game. it's not. both parties benefit. national defense is provided by strong national economy and the administration has poised to hurt it. issue -- that the has direct impacts to the zte. does your committee have anything to take up at a similar amendment? rep. hensarling: we have our ready done appeared. we have marked up a bill in our committee, a different version of sify is. it passed out a committee umana -- unanimously. kevin: do you have concerns about zte?
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i do have concerns. rep. hensarling: -- rep. hensarling: i do have concerns. on the house side, that concern would have to be addressed most likely in the house of ways and means committee. in financials are -- services committee does have jurisdiction. they passed a bill out of committee. i don't know when we will go to the floor, but i would expect this will be resolved. unfortunately, the administration's actions puts somewhat of a damper on the progress of this as we try to sort out, if this is how they used to 32, how would they use new fit -- new city is. kevin: that is a great point. i've covered you for quite some time. by no means are you someone -- you have been criticized for positions on the exported business community. you are by no means someone who says, we can't just worry about other countries with trade. ,ut this in a broader context
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mr. chairman, of the trade debate we are having, from your position as a conservative who has argued for keeping america's interest in trade. put this in context with me. rep. hensarling: i came to congress because i believe fervently and the free enterprise system. i am not sure if there is any has sustained over 200 years of average 3% plus economic growth. that is part of our american birthright. part of that is our commitment and dedication to free trade. ultimately, it ought to be about who we are as a people. if a school's -- school teacher wants to buy a sweater made in peru as opposed to illinois, that ought to be there right. it also increases their disposable income when they get to do it. protectionism has not worked. we can go back to the times of adam smith and david ricardo. we know it does not work. as the administration tries to
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everyhe rust belt, for one person they may help there, they are going to hurt 20 others in florida, texas, california, and other states. at the end of the day, they are hurting consumers. david: that was texas representative jeb hensarling with kevin cirilli. kudlowcoming up, larry do to speak of a white house. he will talk about the administration's goals for the g7 later this week. we will bring it to you live when it happens. again, larry kudlow is due to speak very soon. this is bloomberg. ♪ ♪ retail.
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♪ scarlet: i'm scarlet fu. this is "bloomberg etf iq." we focus on the access risks and awards -- rewards. ♪ scarlet: as go tech, will s&p's reclassification of favorite tech names play havoc with historical models of performance? we speak with the top market oner, and get the lowdown how the firm held off its biggest etf trading ever. a $5.6 billion transaction.

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