tv Bloomberg Markets Balance of Power Bloomberg June 11, 2018 12:00pm-1:00pm EDT
david: they meet at last. president trump and kim jong-un are only hours away from their summit. we're live to set the scene. negotiator in chief, president trump will negotiate the deal with the g-7 on joint communique and changes his mind somewhere over the pacific. what does this tell the world and kim jong-un about doing business with the american president? we tk with his former spokesperson, sean spicer. are we going to have a trade war or not? america's trading partners try to sort out where they stand. with tariffs threatened on automobiles and a deadline this friday for tariffs on $50 billion worth of chinese exports. g-7 fallout.with
any show of unity from the group of 7 was sidelined by president trump's abrupt qual between president trump and the canadian prime minister on the ground in quebec and on fallout. any show of unity from the group of 7 was sidelined by president trump's abrupt qual from the negotiated summit accord backed by all other g-7 allies. fiery exchanges reopened doubts that nafta can be salvaged. joining me is the heritage foundation twitter stephen moor how consequential will the developments at the g-7 be for the relationships with the u.s. and allies? stephen: it was certainly contentious. no question. donald trump has a very different attitude about our relationship with some of our european and canadian allies than say obama or bush before him. trump wants to get tougher with these countries in terms of -- one of the things that he said at this summit, which annoyed some of the other g-7 leaders, was that we're not going to be the world's piggy bank any longer and continue to pay for all the costs of nato, climate change deals, and so on.
that didn't rub the europeans too well. i think in the end this is really the start of a long negotiating process. these countries are going to have to bring down their tariffs and engage in fairer trade with the united states. and that's something trump always said from the beginning of the time that he started running for president. there's sort of a new sheriff in town. we'll see how this relationships evolves. shary: the we question would be is this the right time to target allies when you have to deal with china at the same time? the u.s. trade representative said the trade with china cost u.s. more than $600 billion a year. stephen: great question. when i talked to the president and some of his white house advisors, i asked that same question. do we want to antagonize our allies right now when we have a much bigger problem with china? china is the bad actor on the
world scene. canada, we have a great relationship. we don't run a trade deficit with canada we about sell as many products as they sell us. china is, as you just said, a big problem. want a unified front against china if you are going to get them start respecting our intellectual property, paying for that, and reducing their nontariff trade barriers which may get very difficult for the united states businesses to sell their products there. it's a great question. i think one of the worries is donald trump may be trying to ight a three or four front war at the same time. that doesn't work very well historically. david: is there a strategic here -- strategy here? china is a much bigger problem. at the same time. that doesn't work very well most people admit that. he's got distracted with milk with canada. we have a trade surplus in milk with canada. stephen: yeah. it's roughly even. we about sell as much as they do to us. canada is our best allies in the world. they have been for 200 years. i don't see point in abeing them
-- attacking them. i'm a big fan of nafta. it needs to be renegotiated. we have a problem with their price controls they put on our drugs and vaccines which makes it more expensive for americans to buy these products since they are not helping play for r&d cost of these things. i think they are not that far apart. donald trump is a deal maker. this is a guy who knows the art of the deal. he is putting out these threats of tariffs to try to get these countries to be more cooperative. here's the important point i think a lot of people in the media are missing what happened at the nonetend of those negotiations on saturday. right before donald trump was leaving for singapore, he put out the idea, which i love and this would be so great for the world economy, why don't we go to zero tariffs. why doesn't europe reduce its tariffs, canada right now the legitimate point that donald trump has that has not been publicized enough is the united
states has the lowest tariffs in the world. these other nations impose higher tariffs on us than we do them. and donald trump wants a level playing field. wouldn't it be a wonderful outcome. i think there is a shot at this, of countries moving closetory zero rather than elevating their tariffs. david: you know the benefits that would have for different people f that's a good idea, which is a pretty revolutionary idea, why didn't donald trump start talking about that a long time ago, do the work, so you go into the summit and actually present things thought through rather than throwing that out at the last minute and a hail mary pass? stephen: i talked to president trump many times on the campaign about this. i was a senior advisor to trump with my buddy, larry cud low, now donald trump's senior economic advisor. we always proposed this to donald trump. and trump got it. he said my mission is to create -- i'm for free trade, but it has to be fair. if we're opening up our borders to other countries, they have to lower their tariffs.
that's a very legitimate point. by the way that played very well in michigan, ohio, pennsylvania, iowa, wisconsin, states where a lot of workers think these trade deals with countries like china and japad some of the european countries haven't worked out so well for americans. i think trump is a free trade guy, but he's going to insist on these countries bringing their tariffs down. the question is whether the i europeans and canadians and japanese are willing to do that. i think that's the next big step in this process. >> in the meantime, are you talking about all of these allies. in the meantime you see ping meeting with putin over the weekend. how does that -- does that offer counter balance to the west influencing the world? stephen: i was notn favor of what donald trump said about russia. i think the only way we should allow -- this is one man's opinion. russia back into
the g-7 is if they pull out of crimea and the ukraine. there arof human rights violations. that's the reason they were evicted from the g-7 in the first place. i can't defend that statement by donald trump because i disagree with it. ultimately what's going on here is we have an american economy is booming right now. trump's policies at home have really worked. latest forecasts our economy is growing at 4.6%, off the charts. highest great growth we have is. trump's policies at home had in 15 years. the european countries are growing at 0.4% as i learned on bloomberg last week. they should be following our lead. and they should be reducing their taxes. they should be reducing their regulations. and they should be negotiating with trump for lower tariffs so a globally prosperous economy. here at home, whatever trump is doing, boy, is it working. david: thanks so much. the heritage foundation's stephen moore report interesting
washington. a check "on the markets" and here a globally prosperous is julie hyman. jonathan: -- julie: all of this talk over the rhetoric between president trump and some of the other world leaders notwithstanding, we see stocks not moving much today. ahead of what is going to be a busy week for economic data and central banks. the s&p and nasdaq only up about a third of one percent. up jones industrial average just slightly. in terms of the groups that are moving the most in today's session, we have telecoms. defensive trade today which telecoms and consumer stables, the two best performing groups, just slightly. in terms of the groups that are moving the most in today's session, we have telecoms. defensive trade today which telecoms and consumer stables, the two best performing groups, health care which is defensive or cyclical depending which subsector, also doing well. digging into it, if you look at the up
just slightly. in terms of the groups that are ng the most in today's session, we have telecoms telec we're watching at&t and time-warner, both up slightly ahead of the big court decision due tomorrow on this -- almost two years after at&t first proposed buying time-warner for about $85.4 billion. we're going to learn whether the just -- whether federal judge is going to grant the justice department's request to block that antitrust grounds. some different possibilities of what the judge could ask the two parties to doget approval. those two stocks rising ahead of that big decision. something else that we're looking at in today's session in terms of those consumer staples, momentum has improved a little bit. at least enough to take the s&p consume staples index above the 50 day moving average. that's the first time it's been training above that level since early february because we have seen under performance of this group of the it's been bouncing but a very low base here. in today's session, some of those consumer staples names are bouncing back. stocks like smucker, dean foods, general mills, and campbell soup are rising. remember, tomorrow we get the
c.p.i. report, consumer inflation. >> thank you so much. we'll be looking forward to that. coming up, the summit showdown. president trump and kim jong-un are set to meet tonight in singapore. secretary of state mike pompeo says talks with north korea are moving more quickly than expected. this is bloomberg. ♪
stephen: this is bloomberg markets. david: we turn to mark crumbpton for "first word" news. mark: in singapore, preliminary talks between the u.s. and north korea stephen: before the historic sut appear to be going well. the white house says negotiations with kim jong-un's regime are morgue more quickly
than expected. trump plans to leave singapore ahead of schedule. secretary of state mike pompeo says the west will keep sanctions in place until north korea eliminates its nuclear weapons capacity. stay with bloomberg television for the latest on the summit. meantime, the north korean leader took a late night tour of singapore. kim jong-un walked out of his luxury hotel and went to a arby park. he was accompanied by his sister and a number of advisors. one ph singapore's foreign minister. the trump administration's flat sanction russian companies and businessmen for engaging in cyber attacks and helping russia's military with what it calls malic activities. the new sanctions freeze any assets they may have in use us jurisdictions and bar americans from doing business with them. the u.s. supreme court gave states more power to purge their voter databases people who haven't cast ballots recently. by a vote of 5-4, justices
upheld an ohio system that could become a model for other republican-controlled states. they said the system was a legitimate effort to identify people who have moved away. global news 24 hours a day on air and on twitter powered by more than 2,700 journalists and analysts in over 120 countries. david: thanks, mark. we have news crossing bloomberg. 774,000 recalling diesel vehicles over in europe ordered to by the government. you can see their stock is down on the news, almost 3%. a whole series of issues with diesel vehicles over in europe and the united states. it's been a very important part of european vehicles. daimler now recalling 774,000 vehicles and their stock is down. shery: turn to the summit of year. president trump and north korea leader kim jong-un historic
meeting in less than 12 hours. for more on what we can expect, e're joined by kevin live in singapore. kevin, middle of the night there in singapore. we're already seeing kim jong-un getting around. taking a selfie with the foreign minister. are all preparations ready for the summit? kevin: there was kuwait remarkable to see the 30-something north korean leader taking down of downtown singapore, going into the marina bay hotel, home of a very popular nightclub and city scape view of singapore. he spent about 20 minutes there. all of this comes as president trump meeting with prime minister lee of singapore earlier today. then really hunkering down and meeting with top advisors that will accompany him in just a few hours here in the early morning at 9:00 a.m. local time. 9:00 p.m. monday evening in new york. we're told by white house officials that president trump
will meet for about 45 minutes alone with north korea leader kim jong-un. they will each have a translator. after that the president will be joined by a small delegation, including his chief of staff, general john kelly, as well as secretary of state mike pompeo. secretary pompeo briefing us reporters a few hours ago. he said the only deal the u.s. was prepared to accept was one that made north korea denuclearized. the secretary of state has said repeatedly in his meetings with kim jong-un, he has signaled that north korea was willing to go that far. we don't know what will happen in a few short hours when president trump sits down with him. after that we got word that president trump will make public remarks to reporters before he departs singapore. secretary pompeo will travel southeast asia and the region to meet with u.s. allies here very much want to know what comes next. david: thank you so much.
kevin is overn singapr that summit. what are the risks and opportunities posed by this historic summit? we welcome stephan haggard. the director of the korea pacific program at university of california san diego. reporting from san diego. professor, thank you for being here. let's go right at what i just said. what is the biggest risk do you think to the united states of these meetings? stephan: there are several. the meetings could fail all together. i think the signals we're getting from secretary pompeo is in fact there has been progress with respect to the preliminary negotiations. we saw in the g 7 summit that the president is willing to use theatrics. something le that if goes wrong in that first hour that he could walk out or throw a tantrum. in general it looks something goes wrong in to me like the preliminary negotiations have generated at least the
possibility of a framework agreement of some sort. david: you mentioned theatrics. apparently both enjoy theatrics on the world stage. we'll get danger theatrics and no substance. han: one of the things i look for is whether there is a joint statement of the parties or handled through a press conference. if you have a joint statement, then you have committed on paper to some sequence of events, some steps that would ultimately lead to this goal of denuclearization. if you just have a press conference, then obviously there they can fudge details. you'll get somewhat different statements by the two leaders. that's one of the things i'm looking for. shery: how dangerous is the it could boost pressure on the u.s. -- stephan: good question. we need to think about what tates is actually willing to give the north koreans.
the north koreans are not going to simply giveaway their nuclear weapons. of thinking of it is what's the bribe price really. clearly some assurances are going to have to be offered. ofg i think in terms once, you might get a declaration of an intent to replace the armistice. i don't think the united states a peace ually sign agreement with a nuclear north korea. that's something that would come down the line. secretary mattis said in his shankry la address a couple weeks ago that the -- shankry -- a couple weeksss ago that -- shery: on the north korean side kim jong-un has a longer time frame than when his father took power. does this change the calculation of the young north korean leader when he's trying to stay in power for not two or three decades but 40 or 50 years? stephan: one of the things we have seen from the korean delegations over the course of
ations going back to the early 1990's is incredible patience. they do take a long view. on the other hand, the only reason i think kim jong-un came to the table is because the sanctions regime both multilateral and bilateral from the united states is starting to have some effect on the north korean economy. i just can't come up with any other theory of the case. that means that the ability to after good deal singapore when the negotiations will take place hinges on that sanctions regime remaining in place. david: therefore, what after singapore is the danger finally, professor, that if things appear to go particularly well, some of our allies, some of the people in the sanctions regime with us, may get a little weak in the knee. we saw that happen in iraq, for example. stephan: i think that's probably the biggest risk. the problem i don't think is south korea because we have very good consultative relationship with them and the alliance. the problem is chesapeake bay. -- china.
we have seen a little bit of slippage in the sanctions regime. if ping decides to give kim jong-un more running room it can down. gotiations david: many thanks to stephan haggard. still ahead, former white house press secretary sean spicer will be here to weigh in on president trump's diplomacy by tweet. live from new york, this is bloomberg. ♪
david: this is bloomberg markets balance of power. shery: our stock of the hour is general worth financial. insurance and investment specialist spiking more than 20%. at one point trading 20%. at one point trading at their highest since march, 2009. this after the company proposed china's holdings passed a key regulatory hurdle. quite surprising to see a deal with c tse days.
>> that's exactly what we talk about here. the committee on foreign investment in the united states has determined there is no unresolved national security concerns for china oceanwide buying this. this is surprising given we have seen them block a number of deals. we have a graphic that shows that. the biggest one of those was the attempt to by qualcomm. cy ofy put a stop to that in march. is deal between gen west and china's ocean wide holdings is surprising given the other deals. nevertheless they have been given -ey have been allowed to proceed to a closing deadline of july 1. there is another step they have to get approval from the delaware department of insurance. clearly thinking that
isn't going to be a problem. what i thought was interesting about this deal is why china oceanwide might be interested in buying gen clearly thinking that isn't going to be a problem. we specialty is long-term care and eler care coverage. if we think about tell graphics, chesapeake bay has 240 million peopleho are 60 years or older. -- china has 240 million people who are 60 years or older. david: growing market. larger pie. is it one offer or taking other stocks? emma: it is taking other stocks. we have a chart showing amar'e ameripris. ze. it's been interesting because there was concerns if this deal dn't get approval, gwen -- be in trouble. and they could have lost out of that. looks like the deal will go through. shery: thank you so much for that. coming up next, president trump says his meeting with north korean leader kim jong-un is all about attitude. former white house press
u.s. stocks rising today only after fluctuating throughout the morning session. investors have a hectic week with three major central banks setting interest rates including the fed and the ecb. off to 10th of a percent after a weekly gain. the s&p 500 gaining ground. we are seeing the trait of style come -- telecom staples really hot. the yield is past 2.9%. we saw a solid start to treasury issuance this week. we had the sale of $32 billion in three-year notes. it took a hit after president trump withdrew support for the g7 communique. we are seeing emerging currencies gaining ground against the dollar rising 2/10 of 1%. david: for bloomberg first word news, we turn now to mark crumpton. mark: united nations secretary-general says the world is closely watching how the summit in singapore plays out and that the u.n. stands ready
to support the process. he says he commended the leaders of the democratic people's republic of korea and the united states for pursuing a diplomatic solution. he also said the world body can assist with the verification process for denuclearization of the korean peninsula if requested by both parties. the london mayor says critical votes in parliament this week over prime minister theresa may's withdrawal bill is a defining moment for this generation of u.k. lawmakers. mayor con described the stakes today on blumer television. -- bloomberg television. >> it's about having an impact for decades to come. this vote is probably the most important vote of this generation of parliamentarians. it' only comparable to the vote of to go into iraq. it's that big. that vote to find that generation of mps. the votes taken place in october
will define this generation of mps. mark: the u.k. house of lords added 15 amendments to keep close ties with the eu after brexit. prime minister may is asking conservative mps to vote against them. they both tuesday over giving parliament a decisive vote over the final deal. wednesday will maintain the customs union with the european union. the u.s. treasury department is urging east african governments to tighten the loopholes that allow illicit money from war-torn south sudan to cross regional capitals. for athe secretary financial intelligence, neighboring countries like uganda must make it clear that "corrupt money is not wanted here." it is widely believed that many south sudanese government authorities use cash to hide the real estate investments in other countries. that formerorts president obama has met with at least nine perspective 2020
democratic presence in candidates in recent months, including bernie sanders, elizabeth warren, and joe biden. notformer president is i expected to endorse a candidate until the party chooses its nominee. global news 24 hours a day on air and on twitter powered by 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david: president trump through the g7 summit into turmoil over the weekend and he did it after he left early, saying the united states would not sign the joint communique after all because of the canadian prime ministers remarks about tariffs imposed on his country. we welcome someone who is intimately familiar with the way that trump does business. he is sean spicer, now the briefing."the
it's a new book coming out next month. thank you for joining us. sean: thanks for having me. david: with all the presidential tweets every single day, how much of this is some thought out plan and how much of it is improvised? we have this tweet coming from air force one saying we will not sign the joint communique and we will not find it after all. sean: i think that is what keeps people on their toes. the interesting thing to me is not so much the tweets or the other distractions that occur, but rather the results. if you look at what has happened and i know everyone is focused and notresident's style adhering to traditional protocols and norms, but the results that he gets. you look at that communique and you have all the g7 talking about the need to reduce tariffs and other aspects of the president's agenda. the interesting thing that gets overlooked is the results that he gets that ultimately benefit u.s. companies and workers.
it's a lower tariff rate for our products going into the g7 countries. david: a very fair point. at the same time, to get where he needs to go whether it's with the g7, china, or kim jong-un, at some point he has to have an agreement. does he undercut his credibility on people won't believe he will commit to something he sticks to? he said he would sign the communique and then changed his mind. sean: part of it is trying to understand that this is what makes trump different than prior leaders. he is nontraditional, impulsive, and it' a disruptor. it keeps the leaders on their toes. he is getting results economically for our workers and our businesses. that is something that we should sometimes pull back and focus on a little bit more. shery: what was the point of the president talking about bringing russia back into the g7, which was expelled for the annexation
of crimea? secretary, you had to deal with those allegations of russia collusion. is the president creating more noise here? sean: obviously i do't speak for the president anymore and i don't know what the inside thinking is, but my guess would be if you're talking about the economic powers, there is a certain validity to having russia there. witherstands the concerns russia interfering with our election and continuing to do so that we are rewarding them by bringing them back to the g8 if you well. at the current, in the president's view if we are having a meeting of talking about the economic state of being and reducing tariffs as well as other national security issues like isis, syria, and other things, it makes sense to , andone of the other things, it makes sense to have one of the players involved in all those subjects in the room. i'm not sure you can necessarily have a big discussion if you
don't have one of the players there. i understand we do not need to be rewarding them. this should be a way to figure out how do we get them back that someut make sure degree of punishment is maintained or make them do something as a means to get back into the g8. shery: given the fragile relationship right now with the g7 allies, how much leverage has the president lost going into the summit with kim jong-un? sean: i actually look it quite the opposite. if you look at what he has done, first of all, i don't buy into the theory that you can't have disagreements with your friends. at the end of the day, we are whether it's canada to our north or some of our european friends, that we can't have a healthy relationship with them that point at disagreements we have economically. the fact of the matter is that most of the products coming into the u.s. whether it's tariff war nontariff barriers, they have massive access to the u.s. economy.
when we send our products and services abroad, we face stiff tariffs and many of their markets. the president is right for looking after american companies and workers. i don't necessarily think that undermines the overall relationship and friendship that we have. that being said, i think if you are kim, you look at the presidene talk that this guy got things done. you realize that on a lot of these fronts that he is getting real results to the american people. that is what any smart observer would recognize. david: we are on the eve of this i historic summit in singapore. this has become a major priority for president trump. for the first term, this is going to be one of the first major things to a published. -- to accomplish. what do you think you can get done over the? re? sean: the ultimate goal is the denuclearization of the peninsula. what kind of concrete steps can
the president achieved to see that done? reduction or a de-escalation of some of where they were going prior to this with some of their tests? there's a lot that can get done. i think the key is to have a solid, credible workplan that is transparent and gives us some idea of what the stockpile and capability of their weaponry and how to trade them in terms of both sanctions and market access before agreeing to give up that. the thing that is fascinating is this. there was footage of kim jong-un walking through singapore. one of the things often overlooked in this is the fact that as he walks around, this is probably one of the longest flight to you has taken. he lands in this place and gets motorcade around. he looks around and looks up. he sees holdings, economic growth, and he sees people out there consuming goods and all the commercial aspects are there
, probably things he has never seen in person before to that extent. i think there is a way that he looks at that and says, if i do the following, this kind of economy, this kind of growth, this kind of community can be our's if we embrace a work plan to get rid of our nukes. the nukes are only so good. the only way there is a clear path to economic growth for the north korean people is if he is able to do something that will take the economic sections off and allow people to trade with the north korean people. david: this is a fascinating take on it and consistent with some of the things president trump has said. we are going to make it a more prosperous nation. commercialization aneconomics will really overcome, but does it work in this context? those weapons even empower kim jong-un and even keep them alive. is it realistic to say we will give you a lot of commercial benefit and you give up your military strength given that is what keeps his regime going? sean: that is the $15 million
question. for him to walk into singapore and look around and say this is the only way i will ever get this is if i cut a deal -- shery: he was raised in europe though. he has seen all the prosperity abroad. sean: i understand. there's a bidifference. when he walks around singapore, it has been a while. shery: are you concerned other countries given the relationship between the u.s. and north korea could feel that they don't need to enforce these sanctions anymore? china, we are hearing more north korean feelings in china. sean: whether it's china, japan, south korea, everyone else in that region would feel a lot safer and sleep better at night knowing that there is a plan to get rid of nuclear weapons there. again, i think trust but verify. getting a deal and enforcing that deal are quite two different things. , thethan anything else barrier to economic prosperity,
i think we also want to feel it at home and know that we can sleep well at night. the denuclearization of that tenants look should be foremost -- peninsula should be foremost in everyone's mind whether you live in the peninsula or the asian region or parts of the united states. ultimately that's the goal that can be achieved and i think it is to everybody's benefit. i don't think that there is anybody that doesn't want success here. that is something we can all agree on. denuclearization of the korean goal.ula is really a he was sean spicer, president trump's press secretary and now author of the upcoming book, "the briefing." coming up, commerce and michael mccaul of texas -- congressman michael mccaul of texas. he will be here to tell us about what he sees in that summit over in singapore. live from new york, this is bloomberg. ♪
david: this is "bloomberg markets: balance of power." i'm david westin. shery: i'm shery ahn. president trump is about to see whether his bet on north korea will pay off. here to talk about what is at stake at the historic summit is cognition michael mccaul t of texas. he joins us from washington. thank you for your time. other than the historic photo op that this event will be, what do you need to see in the summit to be able to call it a success? rep. mccaul: a very historic meeting. we have never had a sitting president sit down with anybody from the kim dynasty. the president has a lot of personal chemistry. he's either going to bond really well or he's not, but i do like what the secretary said about optimism and the sense of
progress they have made. as you know, there are pre-negotiations taking place well up to this point. he give some sense of optimism in a country where i have always been rather skeptical. they have defied three previous administrations. we have to view it with a sense if youion, but i think have fear to negotiate, you don't negotiate out of fear. i think this president will walk away from the table if they don't get a good deal instead of getting a deal. shery: has the president ened himself by feuding with his allies ahead of the summit? rep. mccaul: there's a lot of talk about that. i have my own sort of position on tariffs and trade. however, i really don't think that is factoring into components head right now -- kim jong-un's head right now. he is looking at the national
pressure campaign we have put on his country in terms of sanctions and the ability to militarily strike. secretary mattis told me the purpose of the military is to get diplomats in the room to do their job. that is what has happened here. we put maximum pressure to the point where the secretary of state has met with him and now the president of the united states. it is a high-stakes game, but this is the closest i have seen to dismantling their nuclear capability. david: part of that pressure is necessarily the military. every american has the hope that this works and goes well. the president has said it might not. he might walk out. if that happens, how big a step are we taking toward a military solution? rep. mccaul: we have to negotiate at a strength and not at of weakness. that is what the president is doing. he has a leverage going into these talks. secretary mattis has said that that is an option that we would prefer not to see play out. i think it would be sort of
apocalyptic. it would light up the entire peninsula. remember we have over 20,000 american troops in south korea in addition to a lot of americans that live there. that is obviously the last thing you want to see and the last step. that is only done when the diplomats break down the process and can't negotiate a peaceful settlement. david: does the president have a stronger negotiating position with his back pocket of using military force with the resolution from congress? rep. mccaul: i think it strengthens his hand could lindse. lindsey graham talked about this. there are representatives in the congress that we are authorized to use military force if necessary. 9/11ethod we passed after obviously would not have applied to north korea. it is a discussion that we should have. shery: a problem for the u.s. in terms of security forces are the
intercontinental ballistic missiles that could reach the united states. what do you need to see on this short rangeso on missiles that could affect allies in east asia? rep. mccaul: this is a failure in my opinion in the iran negotiations. we did not talk through their ballistic missile capability. i always asked secretary kerry why argue pushing on this component -- art you pushing on this component? single threat that could hit the continental united states with a nuclear rest warhead could -- nuclear rise warhead. that has to be on the table long we talk about dismantling their nuclear capability. it is part of their nuclear capability and it's a device that delivers the nuclear warhead and it has to be a part of these talks. shery: talking about the iran nuclear deal, president trump with the drew -- withdrew the u.s.
it puts pressure on the president to come out with something tougher than president obama achieved on the nuclear deal. rep. mccaul: i think so. i see a lot of differences between those two. this is an administration that has been engaged with the congress. the previous administration on iran was not engaged with the congress. in fact, they were fighting the congress and knew they couldn't get it passed so they did it as a plan of action rather than a treaty because they knew the senate would not confirm it. it's a very different feel here. like i said, i think this president as he demonstrated couple of weeks ago is willing to walk away if it's going to be a bad deal. unlike whatood deal the iran deal was. y: congressman, thank you for your time. michael mccaul, chairman of the homeland security committee. coming up, the supreme court makes a key ruling on voting rules. the details next. this is bloomberg. ♪
shery: this is "bloomberg markets: balance of power." i am shery ahn. david: i am david westin. it is june, so what that means is that the supreme court is nearing the end of the term/ ,. early today these court upheld the ruling of states purging their voting rolls of those who have not voted recently. that is something that republicans have been pushing for. greg, welcome. tell us about this case and why it was important because republicans have been harping about voter fraud for some time. greg: this case was narrowly about a statute or procedure that ohio has for removing people from the rolls. more broadly, it was a proxy for this bigger fight where republicans say there are a lot of people on the roles who shouldn't be. that is creating a dangerous fraud. democrats say that you are trying to suppress votes among low income and minority
people. shery: will this have an impact on the november elections? greg: they could have a small impact, especially in swing states like ohio. ohio had a particular procedure where after you did not vote in one election, they would send you a notice saying, do you still live there? if you did not return that notice and did not vote a couple times, they would remove you from the rolls. there are five states that have similar procedures, including some important states like pennsylvania and west virginia. though states could be affected in a close election that could make the difference. david: for purging voter rolls, it's not the only approach states have taken to get around what they call voter fraud. is this a decision that would affect other accounts? greg: it is a pretty narrowly written decision. there was a motor law a couple decades ago and that law had a provision in it that said you cannot remove somebody just
because they didn't vote and the question was whether ohio statute.iolated that the court said that it didn't. it is narrowly focused on that sort of situation and a handful and certainly having some rhetorical impact, but not having legally a massive impact. shery: we are also expecting more rulings from the spring court. tell us what is coming up. greg: in the next will have a slew of really big rulings and the biggest includes the president's travel ban, partisan gerrymandering, and the internet sales tax, and the fight over whether public sector workers can be forced to pay for the cost of collective bargaining. david: we need to book you for the next two mondays. thank you so much. that is greg stohr. up for the balance of power newsletter at bloomberg
politics.com or bloomberg.com/politics. get the latest in your inbox every single day. shery: coming up, complete coverage of the trump-kim summit. we are little more than eight hours away from the first meeting the between a u.s. president and a member of the kim family. if you missed out on any of our charts, gtb go is your function -- tv is yourction. you can find all of our charts for future reference. live from new york, this is bloomberg. ♪ . .
says the meeting can have only one acceptable result. the complete and verifiable any reversible denuclearization of the korean peninsula is the only outcome the united states ccept. remain until north korea eliminates weapons of mass destruction programs. if diplomacy does not move in the right direction, those measures will increase. mark: secretary of state added the united states will add investment help. theresa may is calling for unity with americans friday to prevent the government from being defeated in key votes this week on its main brexit bill. the votes tomorrow and wednesday, after the u.k. house amendment torts the eu withdrawal bill to soften the terms of bruce's depa