tv Bloomberg Markets Balance of Power Bloomberg June 21, 2018 12:00pm-1:00pm EDT
up off the lows. there are still selling, a lot in the energy complex. what has been a consistent weak spot is theow. it is down for eight straight sessions. we can see that the client about 8%. this time, the longest losing streak going back to 1978. we have been watching the chipmakers close. -- theiconductor there semiconductor index is down.
shares initially had been trading higher. second-quarter numbers beat estimates. they have been down since the open. they were higher their premarket. texas instruments also down. macron reported numbers after close last night and this trading higher but is not have a much of a ripple effect. energy is one of the other weak spots today. here's the six-day chart for oil. a lot of of's and downs going into the opec meeting with speculation about potential production increase. the current thinking is that now there is a conflict between
saudi arabia and iran, a disagreement on how much to increase the production market. client inading to the energy stocks. oil,, co phillips, and chevron are all under pressure today. david: republican lawmakers appear increasingly reluctant to challenge president trump. and a member of the freedom caucus, president trump montana and then twiggy -- tweeted about it. congressman stanford joins us now. multiple reports of that meeting disagree with donald trump's report of it what is the problem
? why does president trump have such a problem with you particularly? >> you got me. i wish i knew. go.'s the way these things corkert to what senat was talking about, cult of pulse personality,lt of he called it. on a handful of issues, i have disagree be amnibus bill would surprise to no one. vote for financial sanity. baked into the cake in the
american political system is the notion that we can agree to disagree. that is what our system is built around. fathers -- allegiance around core values. about how much of this is substance, policyifferenc, and how mu it is personality? of the the danger political system if that is the way we are evolving? >> extreme. method.ve in the case is no ideas on the middle and debate them long enough and hopefully you g a better
mousetrap as a consequence of that debate back and forth. docent, -- chilling to send, chilling debate is t opposite of what the founding fathers anticipated. haidi: in the past, you have called this tribal. and so whatit comes next politically. i've never run a race like this where the operative question was whether you are for or against trump? i am neither for or against trump. andave ideas where we agree there are ideas where we disagree. , and ana bellwether important one, on where we are on this larger, national debate.
we don't have a parliamentary system. we don't have to kowtow to the executive ranch. -- executive branch. haidi: there are also debates on immigration, president trump signing an executive order to stop the separating of families at the mexican border. debate onhaving a use that in the halls of congress. i don't know if it will get resolved with a legislative fix in the house i'd this week. week.the house side this david: on various issues, trade is another one where maybe we let the president have too much authority. whic way is it tilting right now, this theater time that we seem? this cult ofwe see
members arewere gop are afraid of the backlash you've seen. issue on the immigration issue is there is a bigger principle it play, which is the beauty of the american political system is that has been some measure of stability that came from it. for investors to make any ngterm decision, they have to have some belief in the system all what comes next. on immigration, it's a perfect example. and acted aration policy of zero tolerance. they are appealing that back. it -- they appealing are peeling it back. there's been a degree of stability versus banner --
banana republics in south of central america or other places in the world and that is a distinguishing point. i think we need to peel back some of the license we give the executive bran. david: in business are planning whatever anyone thinks of president trump, good or bad, he is unpredictable. so we will not get a lot of stability from there. a perception that congress is largely dysfunctional. -- you raise a grade point. all measure of life requires a degree of leadership.
border illegally. the legislation is needed to personally solve the problem. john cornyn of texas says the executive murder -- executive order could be rejected by the courts are beset -- or be subject to a lawsuit. way and written -- when resume euves the block next year, citizens in britain can stand have their families join them. has allowed aourt recount of the may vote. in israel, the wife of tengion
minutes an yahoo! has been charged with fraud -- of ofjamin it's an yahoo! -- ahu has beenany charged with fraud. he says his family is the subject of a witchhunt. global news 24 hours a day, on air and on tictoc on twi powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ trump attackedt tariffs on american goods. some states are especially vulnerable. for colorado, canada is its largest market. mexico and china are the next largest.
our next guest is colorado governor john hickenlooper. given this hard-line stance on is therenal level, still lay plays first day's keep cooperation in business with these countries? >> absolutely. many governors are trying to reach out and maintain their relationships. most governors recognize that any trade agreement, whether it is a trade agreement, they always need to be improved. getting to fair trade helps both sides, both countries. i was talking to a guy yesterday in the beef industry. in korea, coscosw -- costcos have to restock several times. prices.ift up commodity in ag, that's important.
shery: we like you are beef in south korea. >> not quite the same level of open-door. if you want to get yourself heard, you can do it. there is age is feeling among a lot of democrats that they don't get into the right meetings where decisions opinions onmade or important issues get a voice. david: we had the supreme court come down today with a decision on sales tax. online sales have to be subject to sales tax. what is that meet her financing in the state of colorado? >> i think it will help some. taxes already collecting from amazon on the products they produce. -- awill have a much level
much more level playing field. their schoolport district's and have bake sales, it will strengthen the whole community. david: this raging issue on immigrio it climaxed yesterday with an executive order and dealing with the families that have been broken up. how does that affect the people upon -- a colorado? what would be like to have happen? iswhat you are seeing clinical child abuse. you are traumatizing this gives you have done nothing wrong. everyone i talked to in colorado is embarrassed by it. we talk about international trade. we need to find ways to build our relationships and build trust and predictability to have any kind of does this transaction. in this case, seeing almost a police state along the border and breaking apart children from their families really is
unconscionable. it is hard to imagine that it is happening in america. david: any parent watching that would share your thoughts. fair, same time, to be theresident, as he announced of this, he said we have a problem. we have a lot of people showing up at the border claiming asylum. should have a process to see if they are entitled to it or not. how do you put those they see other? >> certainly, we have work to do. i understand we have borders. borders have a perverse here in we need to be able to secure our purpose. but the zero tolerance approach has unintended cousin once is americans don't want anything to do with. a great chance for the white house to bring together republicans, democrats, stakeholders from various sides of the issue and work through where do we agree? how do we get to the next level? and ultimately, how do we begin to change a situation that is
clearly not working? shery: you are widely talked as a potential presidential candidate. when would you start considering such a bed? >> my wife and i have -- such a bid. -- such a bid? and i have talked about it. complement.t how important is it defined a unifying candidate in such a divisive political environment. >> i'm not sure what centrist means. in many cases, if you look at universal health care, i support that 100%. i don't view that as a centrist issue. i am pro-small business and we should be careful not have a too many regulations. is that an extreme position i
don't know -- is that an extreme position? i don't know. the democratic party is stepping forward as a party with solutions. a tendency to blame our political leadership. to some extent, we get the leadership we elect. for someonery ready like you who is a pragmatist, who does not go to either ideological extreme? is the country ready for that? >> i don't know. that is part of what my wife and i will discuss the summer. the rhetoric you see out there would suggest the opposite. i'm not sure that reflects all of america. certainly, the country is divided on many of these issues. mae the challenges funny way
to talk about the problems in getting the stakeholders together a much less confrontational circumstance to allow us to get to your to the pragmatic compromises and solutions. been: democrats have joined by this anti-trump, at the president sentiment. there have been challenges in the primaries because to make democrats shut up. problem in 2020? >> i don't think so. we are the party of the future. we are looking ahead. we are working on solutions that work for the whole country. saying bracket that by we have to stay positive. we don't want 20 candidates attacking each other. morgan ideas just make the party stronger. david: thank you for spending some time with us today. ahead, we will go through
isaking news, melania trump touring the border. we have headlines. trump said that child separations have really bothered melania trump. now the first lady in texas is taking part in those briefings and tours. david: in the meantime, we have president trump say he wants to fix this. he invited lawmakers to meet with him because congress needs
to act on immigration and border control. shery: he just signed an executive order that he says would end these practices a family separation. but a lot of people have questions and the legality of it and whether it will be challenged by the court. they are pointing to congress, saying they need a legislative solution. there are gop immigration bills that would end these family separations but we do not know that they have enough votes to pass it. david: president trump is once again questioning the purpose of the house immigration bill. is questioning their purpose. appeared toof them have elements of the president wanted, including money for his border wall and curbing of legal finance sheet -- curbing
migration. david: and we still have the dreamers. we have not addressed in the path to citizenship and she migration, as i call it. shery: right, we will follow as the bills get voted on. next, crude oil is bouncing around today ahead of the big opec meeting in vienna. will ministers agree to raise production levels? if you do have the bloomberg terminal, tv would be your function. you can watch all of our previous interviews there. this is bloomberg. ♪
over trade concerns. the dow having its longest losing streak since last year. the s&p 500 index led lower by energy and the industrials before theor down crucial opec meeting. david: we turn to mark crumpton. u.s. a ruling by the supreme court today is likely to be cheered in statehouses across the nation. justices ruled that state local governments can collect billions of dollars in sales taxes from internet retailers that don't charge tax to their customers. justices overturned a 1992 ruling that made much of the internet a tax-free zone but states -- shielded companies from collecting taxes if it did not have a presence in a state area in moscow today, antonio iteris smoke of the
councils -- antonio gutierrez spoke of the council's merits. >> the key to promote and protect human rights around the world. lavrov expressed a similar view, saying he hopes washington is decision is not final. the u.s. with drew from the counselor later this week, accusing the ball you -- the body of being biased against israel. the turkish president is running for reelection in a vote that turkey from a parliamentary to a presidential system. erdogan would see expanded powers that critics have compared to a one-man role. he is facing more robust competition, opposition figures and parties teaming up in an
alliance.an 16 people have been killed and hundreds more force to iraq their homes after torrential rain cause severe flooding across the ivory coast. houses were destroyed and cars washed away. the country is in the middle of its rainy season and the downpours are expected to continue through the rest of this month. 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. ♪ david: opec ministers are indiana -- are in vienna. the question is whether opec will roll back production costs. >> -- production cuts. >> we are optimistic. i have metnister with agrees that it is time for us to change course and respond
to the market. higher production is very optimistic. battle lines have been drawn with saudi arabia and russia on one side and venezuela on the other. here, great to have you with us. overblown, the difference between the iranians and the russians with the saudis? >> yes, it is overblown. the message is that production will go up. saudi arabia and's and the -- saudi arabians and the united emirates need to bring kroduction up as a way to than the trump administration for imposing sanctions on iran. iran is becoming irrelevant. in many of the years i have been watching opec, we -- i have
never seen geopolitical forces a strong is this time. the action to impose sanctions on iran. gasoline prices started to go up as crude oil prices rose to key trump supporters in the midst -- in the midwestern states that hillary clinton lovingly called despicable's are really hurt. as gasoline prices go up, they get hurt. their message has been heard by the white house and the what has -- and the white house has gone and asked toaudis boost production so prices will come down here david: -- will come down. do they have any clout at all? it has to be unanimous. can they do anything?
>> yes. this is not a formalit has to bt where countries can't act if there is not unanimous agreement. it is not like the international maritime redesigned which -- maritime organization which has the powered to impose regulations on the quality of fuel. there is nothing that opec can do. if you look at opec's history since 1973, there have been many times with the saudis have said or other countries have said, well, we will go our own way. kuwait famously went its own way in early 1990's. the only enforcement measure that has ever been taken was taken in august of that year when iraq invaded kuwait. saudi arabia can do what it want they will probably get some form of an agreement. if they don't, production will still go up. shery: how about the trade war between the u.s. and china couple came aaron -- matters? sanctions could make it
complicated. >> that's correct. the key thing here is china already is not buying much u.s. crude. u.s..ill hurt the but the oil will find a market. they will go to europe or someplace else in the price will go down. the key thing is the trump administration needs u.s.. but the oil will find a market. lower gasoline prices through november. it is not accidental that the sanctions don't take effect until after the november elections. they were skillfully orchestrated to take effect after the elections. we see production going up. will workhinese around the sanctions. basically, as the sanctions take full force, probably 800,000 barrels a day of oil will come off the market from iran and prices will go back up after the election.
and the iranians were spot on saying this is a way to placate the united states and to thank the mafia dons joining our country. opec thisn if isoray's production, how difficult is it for countries that have done such a deep cuts until now? boost saudis can production fairly rapidly and add a million barrels a day. one of the things they will probably do is say, look, we have to replace the oil that venezuela cannot produce. that ala has a quote in corner and it is under producing. it needs to be replaced -- isezuela has a quota and it under producing. it needs to be replaced. the production will come on
stream and it will come on pretty quickly. david: the russians want a pretty big increase in production. the number is 600,000 barrels. why is they don't get the higher number? >> the russians would never cheat. [laughter] of course, the russians would be his productions. the russians will go up 300,000 to 400,000 barrels a day. they will go up. the saudis will go up. both russians and the saudis will be careful to make sure the price does not fall from -- fall below $65 a barrel. they know the game is after november when markets will tighten. they also know, coming down the new, as we move into this imo rule, the world oil market will get extraordinarily tight and get very high by late 2019
or 2020. is essentiallye to help president trump. is the rule on limiting fuel prices. you think there will be upward pressure on prices. expansion of production, will it affect prices, given what is happening in venezuela? >> they will increase production enough to bring down prices and stop the gasoline prices. so we will have lower prices -- not low prices, lower prices -- through probably the end of november, early december when the sanctions set to take effect. the sanctions will take a significant amount of oil off the market and that will boost prices. when the imo rose begin to take effect, prices will start to rise the way they did in 2007
and 2008. we can see $200 by 2020 and maybe even higher. the united states has no clout with the imo. david: thank you so much. shery: breaking news, the white house calling for an overhaul of the u.s. postal service, including the possible privatization of mail delivery as part of a sweeping revamp of government administration. this is bloomberg. ♪
♪ david: this is bloomberg markets balance of power. shery: upheaval looney on tell this morning. -- upheaval this morning at intel. the chipmaker removed its ceo. what this could mean. intel, a model of good organization for the past five decades, and this is happening. >> very unexpected. intel has never had to appoint as ceo from outside.
they have always had a clear succession plan. this was unexpected. they don't have a clear heir apparent. it is possible the company is looking outside for a new ceo. there are plenty of candidates inside the company. definitely a time of uncertainty for the company that you do not usually see this from. david: tell us what he was doing with the company. he was reformulating the company and fundamental ways. >> he's been this is in 2014. intel where the industry is really changing. cash cow was very successful in trying to transition into new industries, like self driving cars, revenue drivers of the future. shery: intel is in a new
position. they raise their second quarter revenue and profits forecasts. the news onampen losing the ceo. the company is doing well. it is growing. there are a lot of competitors on the horizon. it is ner a good time for any company to lose their ceo ken david: intel has never gone outside before. while they got said this time? >> they might have to consider that. because the industry is changing , gaming is a huge source for chipmakers at this point, and it might be an interesting move and an unexpected one for a company that has always trained people up from middle management. shery: thank you so much. german carmaker dimer is our stock of -- daimler is our stock of the hour.
what happened? >> daimler cut its profit outlook and blamed that on escalating trade sessions between the u.s. and china. it's the first major company coming out with a profit warning. current year ending will likely be below last year. the company says people will buy fewer cars after beijing slaps tariffs on u.s. imports. wild daimler is a german brand, it largely manufactures its --eipt he's -- it'sreset manufactures in the u.s.. extent are these
problems apply to other auto companies or be unique to dimer? if you take a look at some of the u.s. automakers and how they performed today, they are all hit, all down. we also have a chart with analysis that shows that dimer and bmw will be the worst hit. while american automakers are down, it is european automakers it will be hit the most. shery: thank you so much for that. right now, we have the president who spoke just miss ago. >> i have known him for many years. we have come up with a lot of
solutions, that we have democrats that don't want to approve anything because they think it is best for the election coming up. unfortunately, there are a lot of people suffering and that is unfortunate. unrelated and before we get into that, the new employment claims filed yesterday shows we have the lowest level in nearly half a century. that is something that is an incredible statistic. they have a century, that's a long time. the economy is booming and doing really well. we are negotiating trade deals. is taking a little period of time. we put tariffs on certain countries and certain industries where it has been very unfair to the united states. treasury has taken in billions of dollars. and these other countries are coming along that have not treated as well and they are
andtiating very vigorously lots of good things are happening. this should have been taken care of a long time before my administration came into being. but for some reason, for 25, 30 years, nobody looked at trade deals. they are out of control, how bad they are. a we are going to make them good and we will make a fair for both countries, for our country and whichever country we are dealing with, and there are plenty of them. they are all that. there's nothing -- they are all bad. good.s nothing my administration is acting swiftly to address the illegally's desk the illegal immigration -- the illegal immigration crisis at the border. extremist open border democrats, if you look at nancy pelosi and chuck schumer, you see takes where they wanted borders for security just a short while ago. chuck schumer, we must
have borders. hillary clinton, we must have borders. and if people penetrate our borders, we must get them out of our country. all of a sudden, they are big, open border people. it's a con job because of the democrats. we've created and they have created and they let it happen a massive child smuggling industry. it is exactly what hat that's what has become. trafficker -- it is exactly what has become. traffickers, if you look at this, traffickers have made a fortune. it is a disgrace. -- since 2014 alone, nearly 200,000 unaccompanied alien minors have been released into the united states as a result of democrat-backed loopholes, including catch and release, which is one of the worst. recast them and then you release
them. might as well save your time, don't bother catching them. we are stuck with the worst immigration laws in the history of the world. the whole world is laughing at the united states and they have been for years. have beenn minors separated and sent all the way up here alone. but they really came up with coyotes. you know what a coyote is. not good. these are not good people. they were sent up here with human traffickers because the democrats supported policies that allowed this to happen. to funds also refused the personnel, the bed space, resources we need to house the miners. they want -- the minors. they want us to take care of the minors, that's fine. but they don't want to give us the money to take care of them. the blue wave is turning out to
be a red wave if you look at the polls. your bed us to take space and resources and personnel and take everybody and let's run the most luxurious hotel for everybody. theoney. don't want to gi so you can ask them about that. orshave to house these min safeway and we have to house them and we should be taking good care of them and then we should return the back home. that is what we have to do. but every time we ask for resources, the democrats say no. they say no to everything. they are obstructionists. they think it is good politically. i think it is bad politically for them. we will say. loopholes lead to a detention.
i signed a very good executive order yesterday, but it is very limited, no matter how you cut it. it leads to separation ultimately. doj,directing each -- hhs, to keep immigrant families together during the immigration process and to reunite these previously separated groups. is the only real solution for congress to close the catch and release loopholes that have fueled the child smuggling industry. the democrats are closing -- causing tremendous damage analyzed by not doing something about this. and they know that. they know that better than anybody of you with a pen. we are going to close these loopholes. there's not enough money in the world to address the crisis, a very serious crisis. it's been going on so long. at 2014, during the obama administration, they have pictures that were so bad. they had a judge that said it
was inhumane they were -- the way they were treating children. take a look at some of the court rulings against the obama administration. they talk about inhumane treatment. i read them. i looked at them. they are all over the place. inhumane treatment, they were treated terribly. we have a situation where some of these places are really running them well and i give them a lot of credit to secretary nielsen and all the people that have worked on this. but it is still something that shouldn't be taking place. my wife, first lady, is down now at the border because it really bothered her to be looking at it, as iteeing bothered me, as it bothered everybody at this table. we are all bothered by it. we need two to tango. we have 51 votes in the senate. need 60 come unfortunate,
because we have the ridiculous filibuster rule. so we need 60. and i think i will get four or five or six from senators running in states where i won by 20 or 30 points with mike. i think we will get six senators, maybe seven. that does not get us to 70 -- to 60. they still does not get us there. a majority by one in the senate, but we need 10 votes. essentially, we need 10 democrats. not going to get them. they are told by schumer policy don't do it because we want to see if we can -- they are told by schumer and pelosi don't do it because we want to see if we can pick up seats. they don't care about anything. all they say is abstract -- obstruct. all they are good at is obstructing. they generally stay together.
i respect them for that. that is about it. their policies stink. they have no ideas, no nothing, the democrats. all they can do is obstruct and stay together and make it impossible to take your children and families and to take care of immigration. we should be able to make an immigration bill that can really solve the problem, not just this. this is one aspect of it. this is one very important but small aspect of it. we should be able to do a bill and invite them to come to the white house anytime they want. this afternoon would be good. after the cabinet meeting would be good. officially.ited i will a you do the inviting kumal at the press to the inviting. let you do the inviting, let the press to the inviting. over the last 20 to 25 years, it has gone worse. every time they write or rule -- write a rule or regulation, gets worse. we have to hire thousands of
judges. no country in the world is hiring judges like that. they hire border people. . mexico is doing nothing for us, nothing. they have the strongest immigration laws. they can do whatever ty want. they can keep people out of mexico. they walk through mexico a lot -- like it is walking through central park. is ridiculous. mexico -- it is ridiculous. mexico does nothing for us. people want to know why you're being tough on nafta, and i am a tough. mexico is making $100 billion a year off us and the horrible nafta deal. and i am being tough. they do nothing for us at the border. they encourage people, frankly, to walk through mexico and go into the united rates because -- united states because they are drug traffickers, human traffickers, coyotes. we get some real beauties.
mexico is doing nothing for us except taking our money at sending us drugs. they are doing nothing. they can solve this problem in two minutes and you would not have to do anything. but they don't do it. they talk a good game, but they don't do it. we will see how that all comes out. it will be very adjusting to say. by saying i will end we had tremendous success in north korea. we continue to work on that. .ike pompeo has been fantastic there he is. surprised to see you here. andn spin for both of us say that it has been an incredible experience. the relationship is very good. they stopped the sending of missiles, including ballistic missiles.
they are destroying their engine site. they are blowing it up. they already blew up one of their big test sites. be aig thing is it will total denuclearization, which is already started taking place. i understand they are in the process of sending back the remains of our great heroes who died in north korea during the war. that's already in the process of coming back. plus, as you all know very well, we got back are three hostages who are right now living very happily with their families. we are very happy about that. so we made tremendous progress with respect to north korea, even since i last spoke to you. what we agreed to do is have a meeting. i know some of the media says they agree to meet. anybody would have agreed to meet. it would not have been possible for past administrations to have met in the way we have met.
japan, i spoke to prime minister abe. he doesn't have rockets going over japan. that makes him very happy. not see rockets going over japan. to thank yout because what you have done is incredible. there are no more rockets and no thought of it. things can change. personalities can change. maybe you end up with conflict maybe you don't. the relationship that mike has and i have with chairman can and andgroup -- chairman kim his group is very good. statement, we will immediately begin totally or --