tv Bloomberg Markets Balance of Power Bloomberg June 14, 2018 12:00pm-1:00pm EDT
markets: balance of power. we talk with ohio congressman jim ygnacio, who is facing a tough right in his bid for senate. and bloomberg news has learned that former fbi director james comey broke from procedure while investigating hillary clinton females. we have exclusive details of the report. and vladimir putin's russia takes a spotlight as the world cup begins. russia and saudi arabia face-off on the field. off the field, the two are talking strategy over oil prices. david: trade affects american business orders all over the country, and that certainly is true with respect to ohio, with
30% of their exports going to canada. republican congressman's jim ygnacio -- jim eight -- jim rene see. he is coming to us now from the capital. welcome to the program. >> thank you, glad to be here. david: in the past hour, gary washington,ng in warned that the trade disputes that have been generated by the white house could wipe out the benefits to the tax cuts. are you worried about that? thathave said all along the president is a savvy negotiator. he uses a different file than most. he is not a politician, he is a business man. i think at the end, we need to let the process work through it. i think is negotiation styles are not just something we are used to, but i will always continue to look out for the best interest of ohio, ohioans, and business in ohio. we will monitor that in see
where we end up. david: he is not just negotiating, he has imposed some tariffs as far as dealing aluminum already, and i will put up a graphic that indicates that on an independent, nonpartisan organization has calculated job ohio from these new charts, but they are outweighed by the losses. are you seeing jobs lost already? rep. renacci: the tax cut and jobs bill have helped ohio. it has caused many businesses say -- to say they will grow and add employees. i will look at any issue that starts to cause job loss, but i think the president will negotiate through this. we do have unfair trade rate measurements -- arrangements, and believe me, i am all for fair trade, but we need to make sure we are dealing fairly, especially with china. look at china and even korea. it is one of the reasons i testified last week on some of the issues at the federal trade commission regarding steel companies in ohio.
we have to make sure that we have their trade along with free trade. david: i did see that dumping case. let me look forward to that senate race that you are in. will you be benefited or hurt by the president of the position on trade when it comes to ohio voters in november? rep. renacci: i am a big believer, i am in ohio and talking to people in ohio. they love what this resident is doing. they are saying -- even those affected are saying let's see where the president goes with this. but of course there is some concern, whether it is in the agricultural industry or the manufacturing industry. i will monitor that and keep it will -- keep looking into this, but people in ohio want to see the economy growing. they are happy with what the president is doing so far, and continue to say let's support the agenda and move forward. that is a big difference between myself and the person i am running against in the senate, who opposes a lot of the things
the president is doing. so you do not believe the claims by some senators, like job -- bob corker, saying the gop is becoming cultish and fearful of the president. do you think going against the president when it comes to trade could lead to you airing out your differences in public? saidrenacci: like i have all along, it is interesting that we have a different type of president and a president that negotiates with a different style. i was a businessman for 28 years before i came here. i would like to see a change in the way we do things. exactlynot do things 100% the way this president is doing, but i also do not believe he would do think the way i do things. and it is about making sure that ohio employers are are glowing --growing and ohio employers employees are growing. this will take some time, because we have to get back to a fair situation with many of our trading partners. shery: in the general election, you will have to get votes from
moderate and swing voters. so closely associated with the president, will that be an asset or liability? he is well-liked in ohio, but i think when people see my record, they will see i'm willing to work with the other side. i have a weekly bipartisan breakfast, i was number one in bipartisan sponsorships and -- co-sponsorships a few years back. people know i am willing to work with the other side. our problems are not democrat or republican problems, they are american problems. we need to work together to solve these with american solutions. people who know me know that is a way i like to move forward. david: there is a new nation poll -- nationwide poll out now that says donald trump is the number one issue a lot of people will be looking to as they vote in november. about 60% of the people said it would be at the center of the decision, and it divides pretty much evenly, 30% against and 20%
for. is that consistent with what you are seeing in ohio? i travel the when state of ohio and talk to constituents, whether they are union workers or regular, ordinary people at a restaurant, they tell me they love what this president is doing. they are happy the direction he is taking us, and they say to me, you better be supporting this president. it is funny because many people who do not know i am supporting the agenda do not realize that, and i say all the time i do support the president of the agenda. i am seeing a different pitch in ohio. i am traveling the country and hearing differences in other states, but in ohio, it is very strong -- we need this country to continue to move forward and need jobs in the economy to keep growing like they are. we love the tax cuts and job bill and what this president is doing. we want you to help us move this agenda forward. shery: congressman jim renee c, thank you.
let's get a check of the markets with julie hyman. julie: we have a mixed picture in the u.s., the dow just kicking into the green, but it has been struggling to stay in the positive today. that is because we see some pressure on industrials and financials, also holding back some of the gains on the dow, a classic interest rate trade today as we see rates come down a little bit. it is not a big move, but enough to push financials down and utilities higher. we continue to see the outperformance there in the nasdaq. speaking of outperformance, take a look at netflix. a note coming out saying that it , $340 aflix going down share. what itoen is citing hopes are competitive threats, including a combined at&t-time warner, disney, at the truck. as you see here, netflix is call, theto this stock briefly went down at that, not negative on the day but from its high, and then went back up
again. we will continue to monitor that. ther stocks have been in red today. oracle, for example, being downgraded by jpmorgan to neutral from overweight. number i also cut the price target on the stock. jpmorgan saying according to a survey it did, there is contraction in oracle's spending this year, those shares down 4%. mylan's european head is pricing.sks related to and finally, waters, cleveland research downgrading that stock to underperform as recent research shows liquid chromatography trends are slowing in the second order. -- we also a continuing are also continuing to watch oil today, because saudi's oil minister says it will be inevitable that oil ministers will choose to reduce -- boost output gradually until oil comes off its highs, although it looks to be rebounding right now, up 1/10 of 1%.
if you look at russian production in particular on the bloomberg, we have a chart of that. you can see where it has come down. on thepec production bars and russia as well. when we talk about that production boost, you can see the trends in recent years have been lower because of the production cut agreements. with thats inevitability that projections will, and indeed continue to pressure those oil prices. shery: julie, thank you so much. legislation will face republican houseboats next week. carlos carvalho of florida joins us next. this is bloomberg. ♪
markets: balance of power. i'm shery ahn. david: and i'm david westin. let's turn to mark crumpton for our first word news. a watch job on the hillary clinton email prove might give president trump more ammunition. reports say former fbi director james comey deviated from agency and departmental procedures and handling the investigations. is it comey hurt the fbi's image of impartiality. president trump has hammered away at comey's credibility since firing him. secretary of state mike pompeo is pushing back against suggestions that sanctions in place against north korea will soon be relaxed. secretary pompeo spoke today in beijing. very clear that sanctions and the economic relief that north korea will receive will only happen after the full denuclearization, the
complete denuclearization of north korea. he hadhe pale also said constructive discussions on the issue with foreign ministers of china, south korea, and japan during his visit to china. russian president vladimir putin says the u.s.-north korean summit has reduced the threat of a major conflict. president clinton spoke today at the kremlin during a meeting with the north korean parliament beaker, and putin said the summit between president trump and north korean leader kim jong-un opened the door to "new prospect of settling all problems in peaceful and diplomatic ways. london mayor city conjoined survivors grieving relatives and others today to mark the first anniversary of a deadly high-rise fire. the mayor laid a wreath in honor of the 72 people killed in the grenfell tower blaze. many residents say they complained about safety and poor maintenance at the tower, but were ignored. maye minister theresa admits the government had been "too slow to act." global news,
24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. mark, thank you. a doctor deal on the horizon. house republicans have indicated the port from the white house to push to immigration bills or word. this comes as house speaker paul ryan announces those will come next week to stop moderate vote onans on forcing a immigration. this will handle pathway citizenship for the so-called dreamers. in the midst of these charged immigration debate is florida congressman carlos cabello. thank you for joining us for four working on this bill. how far along are you on getting that compromise bill?
afternoon from the capital, and we have been working for weeks with our colleagues to try and find a compromise on immigration. this is a topic our country has been debating for 13 years and we have nothing to show for it, and we strongly believe it is time to act. with regards to the good bill, we think it is true -- too restrictive on legal immigration. we also do not think the solution it proposes for dreamers, for young immigrants brought to our country is children, is efficient. the compromise bill is much stronger and all of these senses, and seeks to better align our immigration system with our economy, obviously make investments in border security, which is important to a lot of americans, and we believe it provides a fair solution for young immigrants brought to our country as children, daca recipients who are working hard, contributing to this great country today, and deserve to have a secure future here. shery: does that include a
pathway to citizenship? rep. curbelo: what we have designed as a bridge into the legal immigration system for young immigrants brought to our country as children. not just daca recipients, but the children of visa holders who came to the country with them many years ago, grew up your, and when they turned 21, they age out of the legal immigration system and lose their status. we are also trying to include them in the solution, and it does offer that bridge onto the legal immigration system so that if someone does want to pursue citizenship, they are able to do so. we talked to your colleague from virginia yesterday, who is a strong supporter of the goodlatte bill. besaid he thought we would able to compromise on some of these issues, including pathway to citizenship if we had e-verify in the bill. is there a verified in the compromise version we are going to see? e-verify is beyond
the scope of what we have been working on, however, if this immigration exercise is bringsful, i think we can in other topics you are important to different members for a different bill, like agriculture, e-verify, solutions for the tps population. we have many tps beneficiaries in south florida. some of these people have been in the country for over 20 years, working and contributing, and they are at risk of losing their status in the near future. we want to see if we can get through this challenge. we know it is an issue that is dividing republicans, democrats, and has even divided the parties within each other, intraparty division. canre trying to see if we overcome that. it won't be easy, but we are as close as we have ever been to having meaningful immigration reform legislation emerge out of the house. give us a sense of another bone of contention, which some people call chain migration. if you let the dreamers stay here, who else gets to stay?
what is the compromise bill propose on that? we have worked hard to keep the nuclear family intact. we want to make sure that american citizens can claim as petition their closest relatives , but we also, with some of the categories, we seek to move some of those visas to employment-based visas so that our immigration system better aligns with our economy and to fill the needs of our economy. also, we made some changes to the visa program to accommodate the dreamer population, which is significant. verify your point on a legal bridge for dreamers. ways,t within existing pathway to citizenship that you would potentially expedite, or is it a separate pathway to citizenship? or is it a pathway at all? i do not understand what you mean when you say legal bridge. rep. curbelo: the new immigrant
visa that would be created under this legislation would afford young immigrants brought to our country as children, daca recipients, dreamers and others the opportunity to apply for these visas, to gain these visas, and once they are issued an immigrant visa, they are in the legal immigration system. the question of a pathway to citizenship, that is really up to each individual. in 1986, when president reagan nine major immigration legislation, about half the people who were legalized decided not to pursue a pathway to citizenship, but under this legislation, we envision them having that option. republican thanks to florida congressman carlos cabello -- carlos crivello. news, though new york times is reporting that mark short will be leaving the white house this fall. much more coming up. this is bloomberg. ♪
shery: this is bloomberg markets: balance of power. i'm shery ahn. david: and i'm david westin. a report was sent to congress today on the conduct of james comey in the hillary clinton- james comey fbi investigation. fibercome the democratic cement had little california who serves on the house judiciary committee. before coming to congress, he was in the general judge advocate of -- in the air force. welcome, congressman. good to have you here. lieu: good to be on the show. david: does this split the love? because jim comey did not do it the way he should have, but he was not politically motivated? rep. lieu: the report will confirm what most of us already
know, that director comey deviated from policy and heard the secretary clinton campaign, but did not do it out of lyrical bias. he simply made a judgment call that turned out to be incorrect. goes a little farther to that, that he also hurt the justice department and the f ei. does this give the president cause to say you know what? i was right to fire jim comey. it was not instruction of justice. he had misbehaved? rep. lieu: that centers on comey, so the intent of -- that is fine, but that is not what the president did. he went on national tv and told america he did it because of the russia investigation. that is textbook obstruction of justice. shery: so the president has thought to use this report in order to undermine mr. comey. he has tweeted about it. do you think it will help in those efforts? don't think so,
because the hillary clinton investigation is separate and different from the ongoing trump investigation. fbihave a different director, you have a special counsel, different deputy attorney general, the so -- so these are separate investigations. shery: we have this report, but the inspector general has also opened up a separate report. we'll be's series of probes affects the doj and perhaps the special counsel investigation? it. lieu: i do not think will, because the republican members who were briefed on what the fbi did in going after carter page as well as other trump officials have come out and said they saw nothing wrong with what the fbi did and the president seems to have this view that the fbi cannot investigate his campaign. that is wrong. the fbi has ever yet -- every right to investigate his campaign if they think trump
campaign officials have acted inappropriately with russia. it is in the past, and we cannot do much about it now. what about this inspector general report shows any means of reform? this shows we are kind of questioning the fbi? rep. lieu: that is a great point. i was on some of these committee hearings where the committee director came and testified. it was clear to me he was under immense pressure from republicans to do certain things, and i think that is what resulted in deviating from the policy. what we should learn from this is that we need to stop politicizing the independent fbi and the department of justice. we need to stop attacking law enforcement. the president should not be attacking the department of justice all the time. we need to step back and let the professionals do their jobs. but where was the attorney general, and why wasn't she enforcing policy? because attorney general lynch and bill clinton
met at that infamous meeting on the tarmac. that never should have happened. shery: congressman, thank you so much for your time and your perspective. coming up next, a historic summit that raises more questions than answers after president trump meets with kim jong-un. what could denuclearization look like, and are there even enough experts to verify it? if you havee, bloomberg on your terminal, just go to tv . this will be the function to check out all of the interviews that we have had throughout our show. this is bloomberg. ♪ retail.
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
shery: the s&p 500 index is rising .2%. telecom and utilities are leading. the dow holding steady at 25,180. now turn to mark crumpton. says he is not comfortable with the trump administration policy that separates children from their parents as they are detained after crossing the southern border illegally. the speaker said legislation is needed to fix the problem. house republicans are considering two immigration bills. speaker ryan said today he "won't guarantee passage of any measure." mp's should bes
empowered to dictate to the final terms of it eu withdrawal bill. intercourse us today in the house of commons. >> we cannot accept amendments to allow parliament assert government on steps it should take on international negotiations. such a move would be constitutionally unprecedented. mark: the house of roles -- the house of lords gave parliament of the final say on amendments. notesa may's office has released its version of the agreement. greek lawmakers have released a series of reforms. parliament voted to approve a final build which includes a list of reforms on issues.
the bill was the last step greece was required to make ahead of next week's meeting of finance ministers of the 19-nation euro zone. steve scalise is expected to wear a u.s. capitol police cap at the congressional baseball game tonight. an honor of the two police officers returned fire last year. --release was 6 -- scully's steve scalise was severely wounded and required nine surgeries. 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. ♪ ry: president trump declared yesterday there is no longer a nuclear threat from north korea erratum -- north korea.
both countries have yet to outline a concrete plan for what the kimr regime has agreed to do. we welcome bruce bennett. thank you so much for joining us today. let's start with the basics. how extensive is north korea's nuclear program? >> we don't know for sure. north korea does an excellent job of hiding these things. it has 10,000 underground facilities around the country. number ofhe facilities probably in the range of about 100 facilities we have to specifically pay attention to. shery: how difficult would it be to denuclearize and verify the
process? what steps should be taken to guarantee this exley happens -- this actually happens? >> many of these facilities, we don't know for sure where they are at the stage. we have not gotten a full declaration from north korea. that is the first step in denuclearization. they have to tell us what they have been doing, where they have been doing it, and how much. that has not happened. it is not even scheduled yet. once we know where we are supposed to be checking, we then have to verify that a guess where we think we should be checking to make sure they are not trying to have us avoid places so they can retain capabilities. then we will need hundreds and hundreds of inspectors to go into north korea, to all these locations. it's a very daunting task. shery: how far did the process go during the last six-party
talks? can you hit the reset button and resume from theere. >> there was some monitoring of them a nuclear facility of north korea, a few other things. we are talking about a much more extensive system now. north korea has always learned from its experiences. a learn that we were able to monitor certain activities there. it has undoubtedly dispersed many of those activities to make it more difficult this time. north korea has a tremendous history of cheating on all of its agreements. that will make it all very hard. david: the fact that it is very hard does not mean it is our threat to do. suppose we have the list tomorrow of where these facilities are. how do we know that that is all the facilities? how will we ever know that? >> the answer there is very dif ficult. we have some idea of where we think facilities are.
check that against their list and where it ends that are not on their deaths on our list we would -- that are not on their list or our list. to talk with people and verify how they are getting material, where it is coming from, and try to identify alternative locations that have not yet been identified. all of this is a very complicated process. david: i want to redo some of "the los angeles times." to enough experts exist track down the voluminous records and conduct the inspections required -- required. nothing like it has ever been attempted. this is pretty sobering. do we have enough nuclear inspectors in the world to do the job? >> the answer is totally trained
and prepared? no. but think about it more generally. these people don't speak korean, our inspectors. we have to send them out with people who speak korean. our problem is south koreans who speak korean speak with many american terms brought into their language t. the north koreans don't use american terms. the scientific language is different between north and south korea. shery: you are completely right. understandcult to why north koreans are speaking. there are many military terms used in north korean korean. after you dismantle nuclear warheads, how do i ensure north red does not seen you to enrich more material? >> there you have to find all of
their enrichment facilities and disable them. the problem is they have dispersed some of that capability. we don't know where they are all -- were they all are. we face a problem in trying to find all of those. they may well keep some weapons hidden, some uranium enrichment capability hidden. that all has to get sorted out. and they will try to prevent us from doing that. david: it is a great thing to try to do, but that is pretty sobering. up, russia and saudi arabia kickoff the world cup today and soccer is not the only topic of the day in moscow. we are live from their next. this is bloomberg. ♪
line is the larger pharmaceutical companies. it shows this push for lower affects generic companies more than pharma. point i wanted to show you next is the sa function on the bloomberg. green is the generic segment. they are basically all generics. success as alan's jenna company is they have a strategy of trying to be first to the fda to put in an application. david: they had a little trouble with the fda. identifiedy have
minor deficiencies in one of through oneications drug. they apply before and it was rejected. looks like it is been rejected again. it is touch and go whether they will be first to market the generic for advair. that -- noturprised a surprise that the stock is having trouble. we will come an authority on russia and its place in the world. welcome. it is good to have you here. ,ive us a sense, first of all of how important this world cup
is to president putin. >> it is very important. he has been arguing for many years, for over a decade, that russia is a wall -- a global power, a world power. now the world is coming to russia and not just to moscow, st. petersburg, but to other cities, provincial cities, to see what a great country russia is. there is not really a boycott going on. world leaders are coming. i think emmanuel macron is although heagain, was just in russia for the st. petersburg economic summit last month. now it is his crowning achievement to show the world, when russia flexes its muscle it the world is upset about
in the beginning, ultimately, he convinces them, that he is a strong hand ruler and somebody , softn organize global power field events. sure you were talking about crimea and eastern ukraine were there were sanctions imposed. the economic summit, there was some boycotting and previous year. vindicated or rehabilitated? we would say vindicated, but anddebates about syria russia's role in syria, is not just ukraine or other asked x of global affairs, a legend mailing
in u.s. elections, trying to slam the desk slant the -- slant the european elections. putin, thehat way the kremlin sees it, he stuck to his guns. he showed them he is a global player and everybody understood. st. petersburge economic forum was about. when russia is treated respectfully, as an equal power, and fact, you can have a conversation with russia. in fact, it can be a force of good in world affairs. but russia should not be underestimated nor be played around or insulted and told what to do. feels, after the in 2014
crimea annexation, it took four years to show to the world that you cannot really mess with russia. shery: how will that image be affected now that you have the -- with its allies over trade? >> he should be happy about it, although he did mention early on that he will not gloat. he feels that he has been saying that you not -- that the united states is not a reliable partner, that the united states -- is a partner that is the- that it is its way or highway. it really works out for him that
donald trump has become such an unpredictable leader. saida few days ago, putin something very interesting, something that the united states often says -- we told you so. putin takes a page from the american playbook. he said i said that talking to north korea and world leaders is something that will pay off eventually. so trump did just that. for him, it was even more a , more than just a reference to kim jong-un. it was a reference to him. if you treat the world, set of lecturing, but treat the world respect, thanand there could be very different diplomacy. i think it was more than just saying to trump i told you so,
but a message to the united , to the analyst sachsen world primarily -- to the anglo-saxon world primarily. a name forn has made himself in his country by vilifying the west and he has a high repertoire now in his reelection. how does that play into his hand when it comes to domestic politics? question, anderful excellent question. i have been thinking about it a lot. when the united states or the west was vilifying putin, he was vilifying the west. saint,pecially after after the fourth term election in march and the in nine -- and the inauguration in may, he feels more secure or feels that he can -- he proved to the world
that he is that world statesman. least the way it feels in moscow. we don't need to be nasty to the united states because it is their deal. they are insecure. we are a global power. the world has come to us. germans, the friends, the austrians, the hungarians, the japanese. he feels in fact he does not have to be then asked anymore. it, if thesees united states continues to behave this way, it will beat itself up and putin does not have to lift a finger. shery: you can follow the world , the world cup happening in russia right now. coming up, comcast taking a page
david: this is bloomberg markets balance of power. shery: comcast is going to a 1980's playbook. a line oflatest in companies going on a borrowing binge to fund acquisitions. it would become the most indebted company after at&t. our guest, this is not even counting the sky a deal. --comcast is in a negative
a- rated company. it raises a lot of questions. does it get downgraded? what will be in charge of a bridge loan? what kind of interest rate will it demand? david: there is risk. lenders will say, wait a second. years, riskpast 10 has it really mattered. if you go to the high-yield bond market, you see a risk on field. you don't see that same field -- look at the investment grade market. the spread that investors are demanding over aaa bond has widened to the most in two years. they are all coming out saying, listen, these lowest rated investment grade bunnies that
are leveraging of for mergers and acquisitions -- investment grade companies that are leveraging for mergers and acquisitions, they will demand more. david: shorter durations are not in as long. there's not much. depends onok, it what you mean by liquidity. can i sell all of my billions of dollars -- it depends how quickly and at what size. these are important questions. investment-grade bond liquidity has been ok. there is a question, at a time when people are growing increasingly nervous about the interest rate risk, you have to wonder. the flocks aboard did not get locked up -- the fox board did not get locked up with bank of america. will that take away from that
bid? >> at what rate will they get the lockup and what risk? we are talking about a bridge loan. up andm&a cycle heats they don't want to get sick with these unhappy loans, then it will be a big question. david: this is a fun question actually. thank you. sign up for the balance of power newsletter. get the latest on global politics in your inbox every single day. shery: commodities edge today, we are doing oil and metals. any of the charts you may have is your function. this is bloomberg. ♪