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tv   Bloomberg Markets Balance of Power  Bloomberg  June 15, 2018 12:00pm-1:00pm EDT

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focus of the intersection of politics and the economy. breaking news -- former trump campaign chairman paul manafort sent to jail by a judge. we have complete coverage of the breaking story. we are joined by kevin cirilli, chief washington correspondent, from our d.c. euro. and from new york, someone who has been following every twist and turn of the mueller investigation. mr. manafort has been accused of many things, including money laundering. he is going to jail today because of something else. kevin: yes, just within the last several weeks paul manafort was accused of witness tampering, and that is likely is going time bars today. that court ruling just within the last hour.
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he will await trial for the charges you alluded to -- chief among them conspiring against the united states. the trial set for the next couple of months. the critique of the judge, who school,his is it middle i can't take your phone," clearly a response to paul manafort's legal team, who were arguing that he ought to be able to maintain under house arrest. she ultimately decided it would work you bars will have to await his fate, fate that could pose similar significant legal risk for michael cohen. david: this is not the first time there are accusations of witness tampering for mr. manafort. did you just keep doing it? -- did he just keep doing it? kevin: yes, that is the allegation, and that is what led him to hot legal water. the charges surfaced before his time as the trunk campaign
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chairman had arrived, but he had been contacting, allegedly, according to court documents, folks who quite frankly might have more information, that the bob mueller investigation might want to interview outside the additional charges. these are court filings that the judge agreed with and said, you know what, he might be better served in terms of the justice system behind bars to await this trial. the blistering critique, she is ultimately siding with the con prosecution and saying you cannot communicate with these folks to get a fair trial, to some justice.et he will have to wait the trial in jail. david: that is the point, greg, does he have to stay in jail until he is tried? how long is that likely to be? >> it is likely to be several months because of the rate this has been going. he is scheduled to go to trial in july, but i would not be surprised if the new charges pushed it along further.
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also remember that last year he got criticized by the government in the same courtroom for trying to get his friend to write an op-ed basically in a violation of the judge's order that they did not want anti-theatrics. this might have played into the judges this is -- the judge's decision in trying her patients. shery: manafort going to jail with this put more pressure on michael cohen to collaborate with a special counsel? greg: this has been consistent eller'sout mother's -- mu work from there is a zero tolerance for lying to prosecutors. not build on the investigation, but it sent a clear message that we are not going to tolerate anything beyond abounds. to -- thishis going this judgment preside over the trial itself? does not help you to make an enemy of the judge. greg: they does not.
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we have two similar cases going on from one in the just of columbia and another that is parallel in virginia. a different judge has raised questions about the mueller investigation. shery: kevin, we now know, according to greg from we could see the trial in late july. what is the next up for mr. manafort? kevin: you will have to wait behind bars. we have to note what president trump said earlier on the white house north lawn to reporters, that he has every intention of being involved in these legal proceedings. actually can make the decision on whether or not to sit for an interview with bob mueller's team next week. that poses a significant risk in terms of a host of things. most notably they could reverberate and have an impact on the midterm elections and who gets control of the house and senate. this is the most monumental development so far in the most
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notable fate of someone close to president trump's political orbit now sitting in a jail cell. you cannot understand that. --overstate that. shery: we continue to see pressure from president trump on other factors an elements that could affect the probe. what we -- greg: what we are seeing out of mueller recently is nothing extraordinarily new. in the case of manafort naming a russian -- however, we have seen and learned and other news organizations have as well that mueller's questioning of a variety of witnesses goes well beyond. the fact that this came up goes in parallel with the fact that person a and person b manafort has been in touch that has reached out to have been in touch with mueller's office as well. they have been suborned to
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provide misleading evidence. david: inspector general yesterday came out with a long report looking into mr. comey's investigation of hillary clinton that was critical. is that likely in any way to slow mueller down or deter mueller? greg: i don't think the oig's report yesterday, 568 pages, will affect mueller at all. mueller is very focused. he is an old marine. he is going to do his job. he is a decorated combat veteran of vietnam and he will not let anything like this get in a way his mission. shery: of course we could be hearing from mr. manafort's lawyers anytime now. we are awaiting that. tell us about this character and the communication between manafort and him that actually got the judge to decide on temporary with witnesses. he was a business partner
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and i guess fixer for manafort many years in the ukraine. he is well-connected. he spoke ukrainian and russian and is well-connected in that part of that world, and indispensable partner to manafort's business. several times last year come in the op-ed piece that reaching out to try to influence the testimony of person a and person manafortou how close was with him. cirilli, the president is involved in this, and at the same time, has he distanced himself a little bit from paul manafort -- "i think he worked on the campaign, i don't know him well." kevin: that is such an important point because it shows how the president's legal team is advising him to distance himself from the must directly to the president's political orbit in paul manafort. he has tried to distance himself from this. in terms of how this goes even
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manafort,t paul this is someone who could pose significant other legal risks to members of the president's first senior members of the president's campaign and political advisers, and yes even the president himself, simply because of the questions and the access and information that paul manafort has. should he try to ultimately make a deal -- greg knows this better than anybody -- even though he is charged with conspiring against the united states for financial dealings prior to his campaign work, there could be a deal made or some type of other legal risk posed that is directly penetrate into the inner circle of the president's campaign and the president's political team. this is quickly evolving, and we are watching these images now at the courthouse. i'll manafort behind bars. -- paul manafort behind bars. shery: that is mr. manafort's
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wife getting into the car. trumpnafort, the former campaign chairman, is being sent to jail as the judge ruled he tampered with witnesses. greg was telling us about the inner circle of the president. one of his closest confidence has been michael cohen which is a separate investigation. at the same time, the big web connected in some form or another. what is the latest we know on that investigation? greg: well, it is completely separate, and yet there are intriguing parallels with the michael krol in case and the manafort case. in the case of manafort, the first shocked and all moments when the fbi agents raided his home. we saw the same thing with cohen. rid of this to get first lawyers to find someone else. going to the same process. the financial pressure on cohen
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's enormous. i don't know if it is intended to strike, but the fact that manafort is going to jail we know that michael: is focused on this and does not want something similar to happen. david: one of the things we keep hearing about is the power of the president to pardon. we hear about it every day. we were just here at that mr. michael milken might get a pardon. greg: he has been thinking about it, yes then talking about it, and much has been made of the d inesh d'souza and scooter libb departed this might be a signal to people. at this point, nothing has happened. manafort can still go to trial. to temptation or the dynamic keep an eye on is whether the president tried to do something unprecedented and have a preliminary -- pardon someone even before anything -- guilt has been determined.
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shery: what has been the reaction so far in washington? kevin: with regards to pardoning, the president has not shown the usual showing of support from republican leadership, notably house speaker paul ryan. all of these republicans in the upper echelon of republican leadership has been very, very cautious. the president on the issue of self pardoning and even on the issue of pardoning other individuals, like greg mentioned. beyond that, some of the most conservative members of congress have shown to have support for the president on these particular issues. but should the president loose some of the support of those that i just mentioned, including republican leadership, it makes it much more difficult for him to navigate the argument that he is trying to lay the groundwork for. either way, i talked to political pollsters who suggest
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and notice note just how political this entire story has become. it has been very polarizing, very divisive. as a result of that, should potentially give the base of the political movement behind president trump has not shown any signs of cracking. it is various republicans who have been critical of him the past that pose the most significant risk for them. if they leave him, it makes it difficult to execute the legal strategy he is time to do. shery: kevin, thanks so much for that. nbc and greg farrell here in new york. we will keep you updated on the latest developer. the u.s. and china are on the verge of a trade war. the trump administration has announced tariffs on $50 billion of chinese imports. beijing has vowed to retaliate. president trump says if the chinese do, he will come out with more tariffs. here for reaction, congressman erik paulsen, republican of minnesota and chairman of the
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joint economic committee. thank you so much for your time. give us your reaction to the latest actions from the administration. >> the bottom line is i don't think tariffs are a smart approach when we are trying to keep our economy going. this will constrict our economy when we are trying to export more across the world. i'm all for targeting bad practices, but we need allies behind us and we need to make sure we are putting tariffs on the right types of products. for example, part of the list the president is targeting includes medical devices. even the president's own report does not identify medical devices as being significant with intellectual property theft. we have a surplus, actually, with tray. it backfires on economic growth. we have a bipartisan letter, 40-plus members of the house that have urged the administration not to include some of those items that we have made some progress, but the right and -- but there are items that cause concern for
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manufacturers in the united states. david: to what extent republicans are registering concerns about tariffs with the white house, or saying they have to toe the line? rep. paulsen: no, we're stepping out and saying that if we want to keep this economy going, we need a robust trade agenda that breaks down barriers to sell american goods and services. we also know that includes keeping our allies on our side. these are just broad-based tariffs on aluminum and steel -- canada, mexico, or europe -- the kinds the -- opportunity to have the economic front with china. david: on the broad-based tariffs on steel and aluminum, which have alienated allies as you directly say. there is some movement on the hill to curtail the president's power. are you in support of that? rep. paulsen: i'm in support of leveraging congress' is this constitutional obligation. it is our duty to impose tariffs.
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we would need the president's support ultimately to do that. there are other avenues as an independent branch of government , to exert some influence on the administration. we are exploring those options and we need to have that dialogue. we need to have a framework where we are all working together to keep the economy going and of slowing down. shery: would you give us details on those options? rep. paulsen: some options, we authoritycise 232 giving extra connector congress, but also appropriations to the department of commerce, other areas of the administration, subject to approval or disapproval, certain tariffs or trade policy. we don't want to get into that tit-for-tat right now, but it is our prerogative as an independent constitutional legislative branch to have that type of influence. we will keep those conversations going and get the right policy in the end. shery: what about the president's attempt to make a deal with chinese company zte?
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we have seen congress try to block that from happening. rep. paulsen: well, the senate is moving forward on an initiative for an amendment to another bill that would not the administration to reopen those negotiations. if you have a company from china, zte, that has violated policies in the past, they should be subject to those fines. that is our leverage that we constitutionally have the obligation to yield. you will see bipartisan support for that, by the way. staging. david: many thanks to congressman erik paulsen. we turn now to mark crumpton for "first word" is. former campaign chairman paul manafort is heading to jail ahead of his trials punt bank fraud and money laundering. a judge in washington revoked his bail today after being told by special counsel robert mueller's lawyers that manafort protected to tamper with witnesses for his trial. the judge told manafort he has abused the trust placed in him six month ago. the president told foxnews he will not sign a so-called
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moderate immigration bill crafted by house republicans. the proposal looked to protect the young undocumented immigrants and a funny joke the controversy policy of separating families -- and end the controversial policy of supporting families of the border. the president doubled down on his opposition to the bill. pres. trump: i hate children being taken away. the democrats have to change that -- that is their law. quiet. that is the democrats' law. we can change it tonight. i will leave here -- no, no. you need their votes. mark: the president said he will not suspend special counsel robert mueller's collision investigation, but he added that the justice department watchdog report shows that the fbi was plotting against him. german chancellor angela merkel says her country is committed to the nato target of spending 2% of the country's close to mr. product on defense, but is
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realistic about reaching it. nato members agreed in 2014 to move towards that guideline within a decade. president trump has criticized germany for falling short. italy's prime minister to conte is calling for tougher reforms of asylum relations including the dublin agreement. he spoke in paris as member nations remain deadlocked over we body immigration. had a summit in brussels at the end of the month. conte says italy has repaired its own proposals and wants to discuss at the summit. he spoke after italy and multiple refused to grant is a -- grant safe passage to a microchip. migrant ship. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. when he was campaigning
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for president, donald trump said he would go after china on, now he has made good on that promise. the question is what this will mean for american business and consumers. we welcome republican congressman jim jordan of ohio, who helped to found a freedom caucus and served as the first chairman and comes to us today from the capital. thank you for being here. rep. jordan: good to see you. david: do you agree with what the president did today? well, looks, most americans are willing to give this president some latitude for the best trade deal for the united states. misgivings about tariffs in general -- i'm a free-trade kind of guy. we are one of the top manufacturing districts in the country. i understand the importance of this. ourthe folks i talked to in district, while concern, also understand that this president had a good first year and a half and they are willing to give him flex ability to negotiate better deals for our country. david: he asked how much flexibility they will give him.
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you are from ohio. in ohio, steel and aluminum, it is estimated that you will gain about 2800 jobs from these tariffs but lose 18,500. that is a net loss of homes 16,000 jobs. how much does that concern you as you go into midterms? rep. jordan: well, of course it concerns me come we don't want any job loss. that is not the case right now. unemployment is the lowest in 20 years. tax cuts have had a huge impact on economic growth. all of those are positive. i think the president said last week in québec at the g7 that his goal is no tariffs, no tariffs anywhere. but that is not the case right now. that is what i would for her, no tariffs on american products going overseas. that is what we have got to try to get to. the president says that is his goal. am i concerned? i think everyone is from our
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part of the world, west central ohio. we have great companies in our district like honda of america. they are nervous, but let's see how that shakes out. david: you have about 14,000 employees from honda. your number one employer is walmart. the stock is down quite a bit today -- rep. jordan: probably is the case in a lot of states. david: exactly the case. we heard yesterday from gary cohn, former chief economic advisor to president trump, who said he was concerned that the tariff action would take away what you all accomplished with the tax plan. can you -- are you concerned that you will give away in one hand when you took from the other? rep. jordan: let's hope that is not going to be the case. i spoke to mr. kudlow just a few weeks ago -- of course we wish him the best recovery from his --rt attack that took place but i spoke with larry a few weeks ago and he seemed to be
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optimistic that we would get this result in a positive fashion for the american people and for our economy. i think we have got to wait and see, and let's hope this works out in the way that it should. david: the question is how much time do we have and how much time do you have. we heard from china right away that they will come back with tariffs on the equivalent $50 billion, and there are reports today of another $100 billion. rep. jordan: that's the point, they already have tariffs. they already had tariffs on our goods. we want all of that to go away so we can have traded an opportunity for americans to have jobs in this great country because they can market and sell the goods in markets all over the world. we want that to happen. there were already various to that taking place. the goal should be one of the president said last week in québec when he said to get rid of all tariffs. david: most people around the world would agree with you that china is not an open-traded
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society. please understand, they are saying they are going to put another set of tariffs, and we say we're going to do 100 going dollars on top of that -- $100 billion on top of that. rep. jordan: well, i'm concerned about that. the escalation combat is a trade war. we don't want that, i don't think the president of the united states wants that. at the same time we are try to get better agreements, we have tried to put a focus on china, who is the biggest offender. the president has the right goals in mind. let's get this done as quickly as possible and do it in a way that benefits the american people. say, mostctly, as you of them, europeans, canadians can say that china is the real issue. you referred to québec last week. was that a step in the right direction? it seems that we are fighting with our friends when we should be getting together to stick it to china. monday aluminum and
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steel tariffs first went on in the spring, i signed a letter to the president to say to focus on the real offender, china. i am for doing that. i understand it has expended some from there. we have got to wait and see how this shakes out. what i do know is that unemployment is the lowest it has been in 20 years. it has been a pretty darn good first year and a half for this president when you think about all of the promises he has made and kept and where the country is now at. david: no question, i don't anybody can quibble with that that the economy is doing well. but some of the promises you made were to go after not just china but have to and the europeans. delivering on those promises as well. rep. jordan: fair enough comparative. -- fair enough, fair enough. david: as you look forward to the midterms come how big a factor will trade be in your judgment? rep. jordan: we will have to see. i think we are going to win and main control -- maintain control of houston even the typically the first midterm election in and what administration is a
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difficult time politically. but i think we are going to win. i come back to the economy is growing, unemployment is low we are out of the iran deal, the two koreas have met, the president had this amazing summit. all of these promises made, promises kept. i think that is a pretty good environment to run for reelection. we will see what the impact of trade policy is as we move to those midterms. david: finally, as you go back to your district and talk to your constituents, is that what you are hearing? rep. jordan: i hear positive things. but i will be honest, i hear from some of our big manufacturers, people in the agriculture sector who are concerned, like i am concerned, about these trade policies. i think it is too early to tell. i have heard from employers who say, you know what, i'm so fed up with the abuse from china in a trade policy, i'm willing to give the president some latitude to negotiate better deals. even though it might hurt some in the short-term, they think it is worth it in the long.
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i hear both of those concerns when i talked to constituents. david: crime is meant always great to talk to you. you are a several time state champion in -- congressman, always great to talk to. you are a several time state champion in wrestling, president of opec and you. jim jordan, member of the house freedom caucus. shery: former trump campaign manager paul manafort heading to jail today. upwas ordered to be locked ahead of to transfer bank fraud and money laundering. he allegation is that tempered with witnesses and so he is sent to jail. this is bloomberg. ♪
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david: i'm david westin. shery: and i'm shery ahn. stocks and treasury yields following today after bischoff
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70 -- after risk off sentiment as the u.s. is retaliating on chinese tariffs. the dow is down 1.4% why the s&p 500 is being led lower by energy and materials. the nasdaq is also down 4/10 of 1%. david: and we turn now to mark crumpton. mark: as we have been reporting, former trump campaign chairman paul manafort is heading to jail ahead of his trials for bank fraud and money laundering. a judge in washington revoked his bail today after being told by special counsel robert mueller's lawyers that manafort attempted to tamper with witnesses. the judge told manafort he has abused the trust placed in him six months ago. at thent trump said white house today he will not suspend special counsel robert mueller's collusion investigation and he would still like to speak with him. the dojident also cited clinton email investigation report, which was released yesterday, as proof that the fbi
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was plotting against him. president trump: are you thinking -- >> know, but i think this whole investigation is now -- look. the problem with the mueller investigation as everyone has massive conflicts. you have wiseman, who is that hillary clinton's funeral, meaning her party got turned into a funeral. the democrats begged to differ and comments made after the release of a 500 page report. senate minority leader chuck schumer noted the doj found no evidence of political bias and never criticized mueller or his investigation. senator schumer and california democrat adam schiff agreed that james comey and his team made serious errors of judgment. vladimir putinnt and israeli prime minister benjamin netanyahu spoke by phone today about the situation along syria's border with israel. the kremlin said the two also discussed beefing up their coordination on the fight against terrorism. the conversation follows up on
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lks in moscowrs' ta and the defense minister's visit to russia last run -- month. status onno change in joint military training between u.s. and south korean milita forces, despite president trump's decision to suspend those military exercises. japan's as the large-scale exercises help ensure that evolving tactics and procedures are executed smoothly and that allied forces are in sync. they also serve as a deterrent to enemy attacks. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. david? former trump campaign chairman paul manafort is heading to jail. a judge in washington revoked his bail after special counsel robert mueller said manafort
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attempted to tamper with witnesses ahead of his trial. david mclaughlin joins us now. where is paul manafort now? is he in the courthouse or already in jail? david: after the hearing today, he was immediately taken into custody to go to jail. that is where he is now, probably being processed. there was no respect for him after the hearing. shery: we are expecting to hear from mr. manafort's lawyers, and what are we expecting them to say? during the hearing, they told judge amy jackson that this did not amount to witness tampering and paul manafort did not know that these two individuals were, in fact, witnesses in the government case, and also argued that the order not to contact other people actually applied to another case he is involved in in virginia and not this one. this issued her that
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could be dealt with with changes to the conditions of his bail, basically an explicit order that he cannot contact other people -- without a lawyer present. david: as i understand, that trial is set for late july. will that date hold, because that will determine how long he is in jail before the trial? has two trials coming up in the coming months, one in alexandria, virginia. this one is about money laundering and the accusation that he was an unregistered foreign agent for ukraine and now today, he pleaded guilty to new charges, the witness tampering charges. he will be held until then. shery: david, thank you so much for that. mclaughlinews' david with the latest on paul manafort. roads, us now is then
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also the author of a new book "the world as it is." joining uso much for today. in your book, you know that in 2015, you ended up looking as if you were reacting to vladimir putin, the president of russia, and not the other way around. with all the news right now of mr. manafort, the special counsel investigation into potential russia collusion, has anything changed today? >> no, i think it further confirms -- it is something i talk about a lot in my book, this aggression from russia picked up after ukraine, after the president from ukraine was ousted. that is when this all went off from the russians. and then they started developing this war capability. it is interesting that paul manafort, a lot of his ties to russia were rooted in ukraine, thee he was tied up with russian backed president.
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so the origin of what is happening today points back to that crisis in the ukraine. david: at the time, there were sanctions imposed on russia in response to taking over the invasion of crimea in the eastern ukraine. it does not seem like they had much of an effect, and now we have a world cup going on and everyone is acting as if nothing ever happened. ben: it had an impact on the russian economy. we did see a hit to russian growth, we saw a hit to the ruble. what it did not do was change bruton's behavior. so we were able to impose a cost on russia and kick them out of is g8 also, although trump trying to invite them back in, but putin decided he was willing to take that hit to his economy to continue his aggression in eastern ukraine and in some of his aggression towards the united dates. i think the world cup is part of what he is trying to do for years, which is claim symbolic legitimacy through events like that, even as if you look at the fundamentals of russia, its economy, brain drain, that is
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not as good of an indicator for putin. david: i don't want to mischaracterize your book, because it is very readable, a doy well written book, and i not say that to all of the authors that come on here. there is a lot that you are proud of in there, but let's talk about some regrets you have or maybe things you might can guess. let's start with syria, because i think history will say boy, we did not do much to help syria. was there much in retrospect he felt we could have done, or was there nothing? ben: i wrestled with it in the book and i wanted to show people that yes, we did not think we got everything right here. here is where we might have second guesses and here is where we might have doubts. in syria, everyone tends to focus on military action, an airstrike, the red line incident that made a difference. int i look at in the book is 2011 and 2012, at the beginning of that crisis, could we have done something more robust diplomatically to try and forestall a civil war? or was aculty is once
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complex of a war with foreign powers involved and proxy wars, it was going to be very hard to have a military option that worked. i looked back at the beginning of the crisis in 2011 and 2012. were we to hopeful that assad was going to be ousted? could we have done more to avert a civil war? were we to quick to call for a sought to go? did that for close diplomatic options? i think it is important as far as the beginning of that story if you want to understand whether we could have done something different. it comes to north korea, after the nuclear inspectors were kicked out in 2009, there was not much progress under the obama administration. when you look at what this administration is doing with north korea, what is your assessment? how do you feel about the action we are taking? ben: i am pleased there is a diplomatic congress. we seems to have been on an escalation with north korea before diplomacy.
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i worry about the outcome of that summit, because north korea things.ral the most international legitimacy than they have ever had, as suspension of very important military exercises with of korea and japan that north korea and china have wanted to go away for some time, and in return, all we really got was a reaffirmation of a commitment to do new we arise that they had made before under clinton, bush, and obama. so north korea offered only the same promises they had broken in the past and got some pretty important and tangible things in return. but behind north korea is china. i remember when you talk about the transpacific partnership as a way to being able to curtail china's influence. the united states is not part of the tpp anymore. we are seeing china become more aggressive in the south china sea. howdy think the latest trade actions by the administration compounded with the geopolitical risks in the region will play out? one, i think china has been
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and will be the biggest winner in the trump administration. they are significantly ramping up their influence in asia-pacific and around the world. secondly, i think trump is going about it the wrong way on trade. if you have concerns about chinese trade practices, you need to isolate china. the tpp was one way to organize countries in that region to a set of standards china would be outside of. by picking fights with our closest trading partners in europe, canada, and japan at the same time you are picking a fight with china, i think that is a losing proposition. at the end of the day, china is well positioned to win a trade war against the united states, because they have less political reliability. if they start hurting people and keep a little constituencies in the united states, it will be hard for us to sustain those tariffs. i worry that trump is playing into china's hands with his actions. david: and it strikes me that someone in your position has a bit of a ethical situation when they are writing a book like
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this. on one hand, you want to be true to yourself and true to your president, but on the other hand, you do not want to appear to have sour grapes. as you write about this and you talk as you do today, what constructive advice and direction can you give today other than we would not do it that way, mr. trump. ben: to the trump administration, i would say that the presidency is an incredibly difficult and complex job. i try to showcase that in the book. to get through that as best you can, you need as many friends as you can. looking at foreign policy, the advice i would give to trump and what can earns me, he will make it much more difficult to deal with north korea or china and trade disputes by alienating our closest allies in the g7, europe, asia. the advice i would give him is you need as many friends as you can get in the world given how many problems there are, and that is what is most concerning to me about the trump foreign
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policy, he is alienating the very people we need to call on either in a crisis or to make a sustained issue on a push like north korea or chinese trade. david: ben, thank you for your time. then roads, deputy to the national security adviser under president obama and author of the book "the world as it is." is embroiled in the move to address so-called dreamers and also the oversight of the justice department and fbi as questions are being raised about the way they conducted investigations into hillary clinton and donald trump during their respective campaigns to be president. we welcome bob goodlatte of virginia. very good to see you, as always. bob: it is good to be with you and shery. david: let's start with this report that we got yesterday, critical of mr. james comey and saying that he violated policy, but they said it was not done
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out of bias. is this half a loaf? >> this is more than half a love in terms of everyone who is concerned about how the fbi has conducted these investigations and people involved with two very important presidential campaigns and mrs. clinton's behavior when she was secretary of state. shocking,ast to me is and i think this is only an investigation into part of that. but when you compare and know that the same people who were involved in both, i think it is stunning in that regard. here is the thing. the report makes it clear that mrs. clinton was not treated the who way that other people are suspected of criminal activity are treated. kinds ofiven all preferential treatment, including having her key aides in the room with her when she was questioned by the fbi in the matter. and several other things throughout that process that are deeply concerning to me. secondly, you have with the
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peters -- peter struck and lisa page evidence of incredible bias on the part of mr. struck, a leading investigator in both of these matters. in fact, it came out yesterday as a part of this report that had indicated as far he --s august 2016 that he actually used the word week, which is an interesting thing -- we will stop president donald trump from being elected president of the united states. that was not made available to us until yesterday, but that is a stunning thing we have a lot of questions about and have now indicated intent to subpoena mr. struck if he is not providing voluntarily in the next several days. david: one of the most important reasons we do investigations like this is to make sure we do not do them again. are there specific reforms in your oversight capacity you would like to see made to the department of justice, fbi to
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make sure this does not happen again, or is it the fact that you had a couple of bad apples? rep. goodlatte: first of all, you make a good point about bad apples. we need to recognize there are tens of thousands of great men and women in the federal bureau of investigation who keep us safe, fight crime, protect us from terrorist attacks, and they have been this merged by this whole incident. so getting this report out is step two. the investigation has been going on for a long time. but there are further steps that are taken, including removing some of the personnel who were involved in this. the director is gone, the deputy director is gone, other people have left, and i think it is important that there be further personnel changes as well. to hears very pleased that christopher wray, who is leading the effort to change the -- environment and change the public perception of the fbi, a great job in terms of saying yesterday that these were sober lessons learned, and they are taking a number of steps and i agree with them.
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chairman, on the subpoena, who will you subpoena? only mr. struck or also miss page, and what do you hope to achieve with this? we have beene: interviewing a number of people involved in this matter, and we have been asking for mr. struck for quite some time now and he has not been produced yet. he is still an employee with the federal bureau of investigation, and we have advised the department of our intent to subpoena him if they will not produce him, and they have not much time left before we will issue that subpoena. tory: so let's turn now immigration, because we have heard today the president say that he would certainly not sign the more moderate bill that would be the compromise that could be put to the floor next week. that is what has been promised by leadership. could we even see a vote at all if the moderate gop members come out with a discharge petition? what are you hearing? we have beene:
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working very hard with everybody across the spectrum of our conference to come up with a consensus bill. we have been working with the white house on that as well. expecting further clarification from the president, from the white house the president's team, because the consensus bill contains all of the things that he outlined when he was interviewed this morning, including not only funding for the border wall, but funding with a trigger mechanism that has the good things that this bill does are for people who were brought here illegally by their parents, allowing them to a, and follow existing pathway to citizenship and have new opportunities. not a special pathway, but new opportunities. that won't happen if the funding is in any way rescinded during the time that these new border security measures are being implemented. it also includes the closing of a multitude of loopholes and includes ending the visa lottery program and using those green cards to move toward a new
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merit-based immigration system and dealing with so-called chain migration. all of those things the president wants are in that discussion,more obviously, is taking place and we are expecting any now more clarification from the white house about that. i expect this process will move forward because it is absolutely essential that we pass a bill. the two bills have been mentioned, one i introduced some time ago and i obviously like that bill, but it has not found 218 votes. i have been very much a central part of the effort to find a way to bring more people from across the spectrum of our party together on this second bill, and i think that that bill also has great prospects. but let's wait and see. we are still a week away from that kind of action. some roomre is still for negotiations and compromise.
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his is very complicated and important, but to a lot of americans that are not in the details, they say i do not understand what the real issue is. everyone seems to agree that something be done for the dreamers, and on chain migration, some relatives should stay in. everyone seems to agree that there should be something done to increase border security. if you get those points established, are we just negotiating about where we are between those two? is there room for real compromise and agreement here? rep. goodlatte: i think there is. we are working very hard to do that. unfortunately, the democrats have not been willing to recognize the loopholes in the law that allow our very important asylum program, which alexanderople like neeson, as soviet dissident to the united states, has ballooned to 300,000 people that are told when they come across the border, if you are not released into the interior of the country, ask for validity or --
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political asylum, even though in almost all the cases -- not all, but a vast majority of the cases case for political asylum. it is an abuse of the system and it needs to be changed. democrats need to come to the table and work with us on it. they seem to want a political issue more than wait -- more than a solution, so we will go ahead and continue to look for 218 votes. i think they will mostly come from republicans, but if we get democrats to join us they will be welcome. shery: congressman bob goodlatte, thank you. stocks are mixed today after an announcement on the tariffs of chinese goods. we will have more later. this is bloomberg. ♪
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shery: welcome back. trade tensions between the u.s. and china escalating as the trump administration announces tariffs on $50 billion worth of chinese imports.
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-- has vowed proud to retaliate. it is said the taxes -- tariffs are taxes on the american consumer, and our guest joins us now from washington. first of all, when you expect to see businesses and consumers feeling the impact of these tariffs? >> nice to be with you. we will see them pretty quickly. we saw the list and are going through the 28, 30, or 40 page list of those items today, and while we are concerned about many of the items in particular, i think our bigger concern was across the board, the potential for this all to escalate. that is what we have been talking about all along as this goes on and we see already the chinese are prepared to retaliate and know the u.s. administration in washington said if they retaliate, we will escalate. we are concerned about where this goes over time, and it does not look good. matt, you are a big
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component desperate need of the tax cuts. how concerned are you we might lose the benefits of the tax cuts with the aftermath of the terabytes? matt: -- tariffs fights. the chinesesue is are behaving inappropriately. we know they are engaged in unfair trade practices and we need to do something about it. we all agree there is a problem. we have a difference of opinion on what the appropriate remedy is to address that problem. we do not think taxes on consumers and businesses in the united eights makes sense as a way to solve the problem with regard to the chinese unfair trade practices. what we have seen and ceos i have talked to, i was with a dozen ceos last week, they are seeing the benefits of tax reform and putting those benefits to work in their workforces, investing in their businesses, expanding, creating jobs, growing the economy, and we are going to a race all those benefits if we get into a trade war with the chinese. you add in what is going on with
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nafta and the rhetoric with the european union, you put all those things together and you are talking about two or 3 million jobs being lost at a time when the economy is booming. we have to double down on some of the things we did last year and not get distracted with a potential trade war. president'sd the authority to impose tariffs be curtailed by congress or through other methods? we support senator corker's bipartisan bill that was introduced last week that administration to submit its tariffs to the congress for review and approval, and whether the politics of that make it likely that bill will pass or not, i think is an open question. i think the fact that you see members of congress in a bipartisan way, you see kevin brady, the architect of the tax bill in the house, orrin hatch, the architect of the tax bill in the senate, you look at the people who are speaking out against this and it is not secular business interests here. there is widespread concern
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among parties, among both parties and people on both sides of the aisle that this will undo the benefits of last year's tax merits and i think that some serious consideration. we hope the administration will back off the rhetoric, will engage in some direct conversations and pursue this through the normal channels. david: matt shea, thank you so much. ederationnal retail ceo. on our website to get the latest on global politics in your inbox every single day. yield up next, real with jonathan farro wraps up the week. this is bloomberg. ♪
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jonathan: from new york city, jonathan ferro with 30 minutes dedicated to fixed income. this is bloomberg real yield . >> coming up, and optimistic checkout for a third or fourth hike this year. draghi -- dollar strength. markets suffering another tough week. we begin with a big issue. the u.s. economy looking anything but week. >> economy is very strong. strong and resilient.

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