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tv   Bloomberg Markets Balance of Power  Bloomberg  July 17, 2018 12:00pm-1:00pm EDT

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trade policies? romaine: in the commodity spaces, you are seeing significant selloff and a lot of the grains and materials directly affected by trade issues. you are not seeing it spillover into equities just yet, mainly because the pain will not be felt with the same magnitude like it would be for something like steel or something else, but this is a real risk that the administration is taking that if there is a certain level of pain for the agricultural sector, they could bleed out into some economies and eventually into the national economy, as well. that is -- kevin: that is interesting, the risk you talk about, michael mckee, there is a lot of global uncertainty folks are feeling as a result of the trade policies. look at what the eu just announce with japan in terms of the back-and-forth for how
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european counterparts, as well as asia, are responding to the president's trade policies. wanted to you gather from what we heard from fed chair powell regarding how he is viewing and interpreting president trump's trade policies? michael: he tried to suggested is a negative, probably from an economic point of view, but stayed as nonpartisan as he could. to makes were trying the point that trade policies would hurt their districts and powell said, yes, if they continue over an amount of time, they will, or if they lead to it overall lowering the global terrorists, it would be a good thing. he did note in the written testimony that there are uncertainties around the world but in general, pretty good shape. he did not seem to suggest we have an immediate problem on our hands. shery: but he was still saying that rural communities could
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have it really tough. why did he say that? he said the fed is actually hearing from the public. talk so muchidn't about rural communities but he did talk about what they hear from corporate leaders, and that is they are putting some projects on hold. there is a lot of uncertainty, so their plans to expand or spend more money are at the moment being held back by that uncertainty, and did things become clear, maybe the tax bill kicks in and something happens. in general, nothing on non-specific communities, just the overall business outlook. shery: what do you think the markets are taken away when it comes from comments that the fed chair made on deregulation and where banks could go from here? romaine: there really wasn't a lot of future movement. a lot of the deregulation story, as far as financials are concerned, have argued in bank
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in. there really wasn't any expectation he would move more the elizabeth warren side of the coin. he did not give anything to her that would suggest to the market he would move in a stronger direction than what he has already done. go ahead. kevin: it doesn't seem like congress -- apologies for cutting you off -- it doesn't smart congress is taking action between now and the midterms of anymore deregulatory policies and the fed isn't really expecting any major significant deregulation reforms three now and november. romaine: correct, and when you look at what the market will do the next months, you have to factor in that congress probably will not be much of a factor until midterm elections. you are not likely to see change in regulation between now and then. willbecomes a market that hang on how fast the fed hikes rates.
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right now, you are talking about a market that only sees one were hike for the year. when you talk about a fourth rate hike, there is a 50% probability of being priced into the market now. they are already calling his bluff on 2019, except the fed once result the market thinks it will get shery: it is not over -- will get. shery: chair powell is facing the house of financial services committee tomorrow, what can we expect? more of the same with more house members, and they pay less attention to monetary policy than senators. you can figure there will be more political questions and about taxes, but from jay powell, you'll get the same story. shery: michael mckee, thank you and romaine bostick, new york. nows check of the markets that the fed chair testimony has concluded.
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julie: as you have been talking about, we have seen an uptick in equities since we heard from chairman powell . not a huge one but reopened little change this morning. it is a difference in tone and direction as we heard from the chair. change in somet extent in other assets. if you look at the dollar and the 10 year, the client to its highs of the section. now, we have .4 of 1%. we have now seen buyers come into the market with a basis point move. and alsoge one notable, we are seeing the yield an dollar go in different directions. perhaps different interpretations. look at the bloomberg for the outlook for the number of interest rate increases we will see from the fed, and what is priced into the market. you have expected increases in
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the yellow and this year in the white. this reset seen all, his commentary, if at because there does appear to be flexibility in his outlook in terms of interest rate increases. finally, back to stocks, is earnings season, and there are important movers. johnson and johnson, the fact they turned their forecast because of strong dollar, shares are higher by 23% and it's all growth in the drug unit. cho schwab also beating estimates of those earnings, rising 3.5% but netflix is a drag bunt technology after the subscriber growth missed estimates. as down as percent to 14% going into the morning and now only down 5.5%.
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interesting how we have seen that cut by more than half. unitedhealth group is coming out numbers and coming out with the soecast for the full year that is an important measure for the insurer. a little bit of a balancing act in a comes to the earnings day. netflix was seen as a threat -- netflix has bounced from its lows. shery: that was an interesting turn, thank you. coming up, a firestorm. president trump stuns even his most loyal supporters after putin. with president more on the fallout, next. this is bloomberg. ♪
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kevin: this is bloomberg markets: balance of power. i am kevin cirilli in london. shery: i am shery ahn in new york. here is first word news with mark crumpton. mark: president trump is defending the way he handled his meeting with vladimir putin, tweeting that the meeting with the russian leader was even better than the meeting with nato but wrote that "sadly, it is not being reported that way." russia is trying to undermine democracy, those words today from house speaker paul ryan. he told reporters the u.s. impose tough sanctions on russia but it doesn't have to stop there. the foreign affairs committee or financial services committee and the senate bank committee think there are other sanctions we have not yet placed upon russia, i am more than happy to consider those. mark: this because says he believes russians did interfere with the 2016 presidential election, and his attention in
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congress is to make sure "they do not get away with it again." former president barack obama made his highest profile speech since leaving office, urging people to respect human rights and other values under threat around the world. he spoke at a ceremony marking the 100th anniversary of anti-apartheid leader nelson mandela's birth, on not directly mentioning donald trump. in south africa countered many of the president's policies, describing today's times as strange and uncertain, adding that "each days of news cycle is bringing more head spinning and disturbing headlines." european union security chief is urging the members to work together to combat illegal extremist content on the internet, saying there is far too much of it online. the security commissioner said today that terror threat across europe remains very high and "is not going away anytime soon."
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global news, 24 hours a day, on-air, and don tictoc on twitter, powered in over 120 countries, i am mark crumpton. this is bloomberg. back to you, kevin, in london are. kevin: president trump is under fire for embracing vladimir putin's spectacular denial of election interference leveled by the u.s. intelligence community. even members of the republican party historically loyal are infuriated by his inability to confront putin, calling the meeting bazaar, disgraceful, and even treasonous. stephanie baker from bloomberg news joins us now. we are about 24 hours from that meeting, what is the follow-up? we know republicans on capitol hill, and by the way, president trump is set to meet with a handful, that would mean interesting meeting.
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stephanie: you have seen measured comments by republicans that have then staunch supporters of trump, less critical, and the critics of trump, like mccain, jeff flake, have come out much more strongly. the real question is, what can they do at this point? the foreign-policy is traditionally the purview of the president. what can they really do at this point? sanctions?legislation to protect the office of the special counsel? i think the possibilities are somewhat limited. beingnie: is remarkable in europe and to hear in the local press how european leaders are questioning test how president trump is able to protect not only the united states but allies interest. i want to put this chart that we had made for us, the u.s. versus
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russia in terms of the host of .ifferent topics from gdp the u.s. dwarfs russia and gdp, it really the only area where we are equal is on nuclear. so where is this sense of acquittal that the president argues and what is it rooted in? allll -- rooted in at srinivasan sivabalan i think it does go back to this nuclear issue, but the problem with the summit is they did not come to a real agreement on anything. there was no actual agenda to renew the new start treaty, which is something that is scheduled to expire in 20 anyone. the -- sok down by the meeting went down badly in europe. look at the daily mirror in the u.k., the headline was putin's poodle. i think the reaction spans the spectrum but has been negative.
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germany's foreign minister saying we can no longer rely on the u.s., this means we need to focus on europe more, the reaction in places like eastern europe and ukraine has been even president.ng the the president saying ukraine would defend the land on its own if it has to, so it has not gone down well in europe and you see trump going back to washington but ii-the in his favor, think he has no love lost in europe shery: do we know at this point -- no love lost in europe. shery: do we know how this is going on with the american public? today here at all in terms of geopolitics and rivals were not this will have an impact on the midterms? stephanie: good question. time will tell how this plays
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out and whether or not trump the tent stood in this will work. whether or not trump's attempt to spin this will work. trump supporters are critical of him. will this flow over quickly? like the outrage over chocolate , or will ituickly remain and continue as a campaign theme in the midterms. kevin: the rush investigation is something that will last for some time. the last time i was in europe ofh the was on the day brexit and president trump was in scotland, then candidate, and flash forward to what we saw here in london with theresa may and what we witnessed yesterday. inre does this go from here the context of economic policy with trade? there were the events and the optics of politics that includes
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the economics of the trade debate that are ongoing with the u.s., europe, china, and others. stephanie: that is the problem with these trump meetings, these they set meetings. it -- heis sense of -- assessing is an interview with the sun -- not, at the end of the meeting in the u.k., he did say he would back theresa may want to do deal with the u.k.. once he gets back to washington, will that hold? what is the point of the summits to go to negotiate these things? i think he will press ahead with a trade war. it doesn't like there was any appetite on his site relating up on that. and he is treating china almost
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the same as he is treating european allies. kevin: the eu pressing ahead with japan incentive trades. we appreciate your time. shery: right, and president trump's press conference on the swift backlash, including from the vice chair of the senate intelligence committee mark warner, sprecher later with bloomberg alix steel. >> absolutely because the president's comments he just made were nuts. pedro the relationship between the drive because russia intervened in our elections. they hacked into the dramatic broke into 21 electoral systems and used social media to manipulate and try to visit card americans -- and try to break apart americans. it was the conclusion of the
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social media companies like facebook, twitter, and youtube. it was the conclusion of other nations that have met. president in his weak performance p exceptsutin version ofputin's the fax sends a horrible message to our allies and someone needs to say that is not the american position. alix: i mentioned a nonbinding resolution, you can sign it but it doesn't do anything to curb what president trump is doing. senatee concrete actions and congress can take that will restrain how this goes forward? hearings, legislative authority? . > i would like to do much more, but we have to do it in a bipartisan way. i think the senate is waking up. 98 senators before mr. president 20 europe went on the resolution. reaffirming our support for nato.
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trump walked away from that and try to throw hand grenades into nato. what we can do on a going forward basis, at least those of us in the intelligence committee need to understand what went on in that private meeting between trump and putin. if trump was this week going -- alix: but senator? >> we in congress the server briefing on what happened in the hope the republican colleagues with joyous in other ways to constrain this president and show allies we do stand for rule of law. alix: that makes the point of concerning the president. so you have the power of the purse, so what can you do on that end? also, you could maybe do regular hearings, would you consider that? knowing what went on in the room is one thing but not have a checks and balances is something different. give me concrete steps.
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>> i think the intelligence committee and our committee, which is bipartisan already, and we put out reports encouraging the community assessment was intact. i think we can continue to pursue actions that say when the president uses what is called section 232 authority, national security authority on tariffs, and when it is not a national security concern, i think congress can hold them in check. we also need to try and work with the rest the world in terms of the real challenge on will trade. the real place where theft of intellectual property is happening. was trying to rally the world against china but unfortunately, the president has taken that, the ability to rally is diminished. encouraged you
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any disaffected republicans to join you horse which parties? >> republicans will have to decide on their own. most of them yesterday put their restart statements out. this was an embarrassment to the whole country. defended the president but everyone else spoke out and said it was bad and these are many women who protect our country, day in, day out, no american president has ever done that. i think it is right to say to republican colleagues, it is great if you put on a statement that will you vote with democratic colleagues to take a path.- to take us down a shery: we will get your stuff of the hour, next. -- stock of the hour, next. this is bloomberg. ♪
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shery: welcome back.
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it is time for our stock of the hour, netflix. d fallen 14% after a big subscriber miss, now down 4.2%. abigail doolittle joint is with the latest. one million subscribers less than expected. what happened? abigail: the amazing but let's put it in context. 150%, upe up huge, up 300% over the last two years, so this company performs. add onerter they million more subscriber users than expected, so this quarter, when million less, so there is lots of lumpiness and this happened two years ago. it seemed sort of subscriber miss. bloomberg,n to the we can see what happens, this can be viewed in the gtv library, white is netflix's share price, and it is 300%. in blue, we look at subscriber
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additions for each quarter, and we see yellow is the expectation and blue was were it came in. we are looking at three down quarters and their most recent quarter about flat to a year ago, so investors disappointed by that. behind this, sharing content. some say it could do with the world cup, that a lot of subscribers were going that way that they have not had a lot of new hit shows, like cost of cards -- like house of cards. shery: i am watching grayson frankie. i love -- grace and frankie. i love that show. abigail doolittle, thank you. still ahead, a meeting of powers. by one of the most important issues facing the u.s. and russia may have room for agreement. we will discuss with sam nunn, cochaired the nuclear threat initiative, next. this is bloomberg. ♪ this is bloomberg. ♪
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kevin: this is bloomberg markets: balance of power. i'm kevin cirilli.
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shery: i'm shery ahn. the s&p 500 is being led higher by materials and consumer staples. one factor that's interesting is tech stocks are now one of the biggest gainers on the s&p 500 despite the fact that netflix continues to fall given disappointing turns. the nasdaq is up .6%. investors taking fed chair powell's comments to suggest the fed is willing to slow down the pace of interest rate increases. they said the fed will gradually begin to raise rates. the 210 sprint continues to narrow. the dollar remains higher. we are seeing risk appetites still waning. the dollar-yen has now risen to six month high as mr. powell was speaking continues to be higher when it comes to the dollar.
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here's mark crumpton. >> even some diehard trump supporters are unhappy with the president's performance at the helsinki summit. former house speaker newt gingrich called it the most serious mistake of mr. trump's presidency and said it must be corrected immediately. president trump suggested he believes that russian president vladimir putin's denial of his own government's allegation that russia meddled in the u.s. 2016 election. russian prosecutors want to question u.s. intelligence agents and a former ambassador to moscow in their investigation of an influential rival of president putin. followsannouncement yesterday's summit. president putin offered to allow u.s. investigators to question russian military agents accused of hacking democratic party during the switch -- 2016 election. wants toge russia question u.s. officials suspected of involvement in financial crimes by british investor bill browder.
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mgm resorts international is suing the victims of the las vegas music festival shooting in an effort to block any potential compensation claims against it. the owner of the mandalay bay hotel is asking a federal judge in nevada to say the company is not liable. stephen paddock opened fire at festivalgoers from the hotel in october, killing 58 people and wounding about 500 others. wants to make it easier for some common medicines to be sold without a prescription. the agency proposed new guidelines today for drugmakers who want to switch prescription drugs to over-the-counter. many widely used nonprescription drugs originally were only available by prescription including allergy treatment claritin and heartburn remedy prilosec. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton.
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this is bloomberg. a good start in helsinki. that's how president trump summed up his meeting yesterday with vladimir putin. members of the president's own party have some very different words for it. shameful, disgraceful, bizarre and flat out wrong. so did president trump walk away from this summit with anything concrete other than criticism? for now we welcome -- for more , cochair ofam nunn the nuclear threat initiative. thank you for your time today. there were low expectations for this summit. there were some hopes that this could reset the conversation with russia. that it could revitalize those efforts to limit the spread of nuclear arsenals. how much of that has been achieved? >> i have commented on several summits.
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between the united states and the soviet union. this may be the most difficult to put in perspective. i would say there are several different ways to look at it. there is a good category. that hadn't attracted much attention. there's a bad category. there is an ugly category and there's a number of unknowns. so it's going to take some time to sort it out. on the good side the president did address strategic stability of nuclear weapons. that's the primary responsibility of both presidents because the united states and russia have 90% of the nuclear weapons and nuclear materials. that's what i call an existential interest. they also discussed on the positive side catastrophic terrorism and they discussed the need to cooperate on north korea. items thate good there were a lot of things that were very disturbing.
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shery: you have written in an op-ed that the u.s. has been stuck in a retaliatory spiral of confrontations that have only led to less communication and more acrimony and tension and that there are risks of characterizing all dialogue with russia as suspect even when it's essential to u.s. security. does an extraordinary with russia -- relationship with russia drive american interests? >> we have an accidental stake in each other's leadership and warning systems on both sides working properly. we have an existential stake, u.s. and russia in terms of leadership and those who control or nuclear weapons. those people need to talk to each other. we talk to each other even during the cold war. so for the last few years we have not been communicated. if there is a positive side of the summit and there are certainly some negatives, if there is a positive side i think
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it would be perhaps creating the people who are controlling nuclear weapons and responsible for this area in both countries to begin to have the kind of communication -- not as if we are friends. if we were friends we wouldn't probably have all these problems. but communication to make sure we don't have some type of risk that leads to a terrible catastrophe. and there are a lot of risks that need to be reduced. competitors is the word that president trump used. but it is so hard to ignore the fallout from the republican -- mostly republicans in addition to democrats about what yesterday represented in terms of u.s. russian relations. so my question to you would be when you look at the issue of the president standing next to russia president putin and
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questioning the validity of the u.s. intelligence community and the findings are making them somehow equivalent, does it make it difficult to negotiate on these very important deals that you are talking about given what we just witnessed? >> absolutely. it makes it much more difficult. it poisons the climate. it reduces support that the president needs back home from both republicans and democrats. they havey that damaged two of america's vital interests. one was on the weight of the summit come at the president criticized long-standing allies and good friends from germany and the u.k. as well as the european union. that was in my view very damaging and just the opposite of what you need to do before you meet with the leader of russia. the second damage is what you just alluded to. that is to our intelligence
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community and law enforcement. intelligence community and law enforcement morale and credibility are absolutely vital to america's domestic as well as our foreign interest. to have the president of the united states in effect implicitly if not explicitly damage that credibility and side with president putin on the matter of interference with u.s. elections in my view is very damaging. we will pay a price for both of those mistakes over the next year or so. maybe longer. there are still things we must do in terms of communicating with the russians. some -- tont to get some word we got at the white house. rod rosenstein was at the white house for a routine meeting. he did not meet with president trump while he was there. anticipate he will be making some remarks publicly. with regards to that image we
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just saw, president putin literally handing the ball to president trump and saying the ball is in his court. in the art states with all the congressional reaction it would appear the ball is in congress's court. to congress do anything tweak or change or influence how this president negotiates with russia? >> yes. congress can do a number of things. they need a small committee of house and senate members. committee chairman perhaps that would meet with the state department on a regular basis on the whole question of russia and russian relations. we have all sorts of vital interest regarding russia and yet right now we have a president of the united states who has been discredited not just with democrats but also with republicans. that's one step that needs to be taken. because we don't want the secretary of state, secretary of defense and other key administration officials to be
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hobbled in terms of the different -- the diplomacy they must discuss with a nation that can destroy the united states at the expense of their own destruction. that's an important step they can take. it's important for republicans to move much further down the line of what i call creeping candor. speaking out.e a few courageous republicans are speaking out that many of them are not. it's not just on this summit. it's also one other very key issues relating to trade and other things that are very important. but congress is an independent branch of government. the senate and house are independent on the constitution and any to begin to stand up and show that they are independent and show they put national interest in front of their party interest. both sides. , cochair of the nuclear threat initiative. you are sticking with us. back.l be coming
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if you have missed out on any of our interviews, you can go to tv and rewatch those comments. find some of our charts that we have showed you throughout the day. if you have any questions to ask to our guest, you can the guest question. we will be right back. this is bloomberg. ♪
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shery: this is bloomberg markets: balance of power. i'm shery ahn in new york. kevin: i'm kevin cirilli in london. shery: we have seen president trump defend his summit with president putin in helsinki. he has even gone on twitter this morning saying that he had a great meeting with nato but he even had a better meeting with
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vladimir putin. expecting to hear from him directly at 2:00 p.m. today. kevin: it's really fascinating to watch the chronology of what has happened at 1600 pennsylvania avenue earlier today. deputy attorney general rod rosenstein was scheduled to be at the white house and he had meetings. he did not meet with president trump. the deputy attorney general having just announced several days ago that 12 russian spies indicted bring charges against them for hacking into the democratic national committee server. then we are also hearing that a small group of house republicans are set to be at the white house to meet with president trump and now sarah sanders is saying the president is expected to make remarks on the helsinki meeting with president putin ahead of that meeting. we will be following those remarks very very closely. shery: it is not surprising that president trump wants to talk
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about this meeting with president putin. he has received swift backlash. not only from his political opponents but also from his political supporters. it was very interesting to see the former house speaker newt gingrich tweet about it saying that it's the most serious mistake of his presidency and must be corrected immediately. great that is such a point. former speaker gingrich was in lockstep with candidate donald trump. really ushered in the old days of the conservative party during the presidential campaign. and he brought with him a lot of the institutional conservatives. that really makes his criticism very interesting. of course house speaker paul ryan criticizing president trump as well. you have not seen the usual type of comments. i would also note that we are anticipated this afternoon to hear from senate leadership. that would include mitch mcconnell. we will be carefully monitoring those remarks as well. you'll remember that senator
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timesell has also at weighed in against the president but not as aggressively as other folks like senators mccain and flight. carefully watching what the president will say in that 2:00 p.m. our facing intense backlash with not just his usual critics and other republicans and also pay attention to mitch mcconnell who is really one of the key architects of the midterm elections for the republican party. shery: we are not surprised to see congress starting to move. senators chris van hollen, marco rubio introducing a bill that would introduce swift's sanctions if the director of national intelligence, not president trump has interfered -- certified russia has interfered in an election. we are starting to see congress act. we also saw them moves when president trump wanting to impose more tariffs on allies based on national security and so forth.
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kevin: absolutely. it was such a great question you had to former senator nunn. he really called on congress to do more and democrats of course also calling on them to do more. i would note just more broadly speaking the you are seeing that type of legislation put forth by the likes of a prominent republican senator, marco rubio, a republican from florida on the issue of u.s. russian relations. we are also seeing congress sends signals to rein in the president's power on trade negotiations. at whatpoint, look senator bob corker has been advocating for to get more approval in terms of how the president uses section 232 with regard to trade. coupled with what we saw yesterday and also in addition to what president trump said in helsinki which is he is anticipating this issue to drag beyondtly -- likely well
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the midterms. this is something we are going to be talking about for a while. shery: thank you so much, kevin cirilli. we will see you back here tomorrow for balance of power. let's get a check of the major averages right now. 25,000.is holding at we are seeing it up .2%. u.s. stocks actually taking those comments by powell very positively. fed chair said they will continue to gradually raise interest rates for now. investors aen some bit more optimism that the rally could continue. the s&p 500 gaining .4%. interesting to see that tech shares are some of the big gainers there. after netflixge reported disappointing earnings.
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that is reversing a little bit and we are seeing the s&p 500 ,he lead higher materials consumer staples as well. the nasdaq up .5%. lower year yield slightly but really not doing much. the 210 spread narrowing again. of course it has been flattening for the past five weeks. take a look at what the dollar is doing. continues to gain .5%. it has been up most of the day. we heard from chair powell say the protectionist policies lead to worse economic outcomes. the dollar-yen arrive into a six-month high as mr. powell was speaking. the long dollar-yen is the trade of the week as investors are taking off underperforming hedges. we will be back. coming up we will be talking about farmers who have planted their flag in support of president trump. we have just how much their loyalty is costing their crops ahead. this is bloomberg. ♪
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shery: this is bloomberg markets: balance of power. i'm shery ahn in new york. trumps trade war cost and concerns are going. soybean farmers are expected to lose a staggering $3.2 billion minimum in the next crop season. jerome powell has doubled down on this in his address earlier today. but the american farmers who helped elect him are standing by the president. joining us now with more is bloomberg news correspondent alan bjerga. they are going to be really hard hit. why are they sticking with the president? >> they are not being hard hit yet. a lot of this has to do with how farms are managed.
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the harvest isn't in yet. farmers have already sold a lot of their cops -- crops from last year. happens whenion the harvest approaches this fall and farmers start dealing with storage capacity problems because they haven't sold their own crop at a decent price and they would like a good price for their new one. is corn or soybeans they need to dump on the market. at this moment it is more headlines than reality. reality is going to bite 30's. shery: that's really interesting. president trump in brussels made that point. he tweeted i will open things up that are than ever before but it can't go to quickly. he was essentially asking for more time. tell us what happens when this passes and they start getting hit. how bad will it the? farmers are looking at this as president trump a businessman taking a business risk.
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farmers like everyone else have trade frustrations. if this goes into the next system our trade patterns are permanently altered so that brazil starts clearing morland to grow soybeans. when you see the sort of structural change in american farming that is going to make farmers think a lot about their support for the president. we are simply not there yet. the impact on the 2018 midterms is going to depend on how well farmers can ride out the storm. some may not be able to that many are in a position where they can. shery: the u.s. is having trade disputes with almost everyone in the world. china, canadae is and mexico with a renegotiation of nafta. how important are these markets? those three nations took up 43% of u.s. agricultural exports in 2017. there are the big three and no one else is even close. do we know at this point what president trump's approval ratings are in the red states? >> the challenges that farmers
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are a subcomponent of rural voters. when you see his approval ratings dropping across the you see big drops in rural states. everything from montana to oklahoma. they are drop in as much in those red states as they are in deep states like california. how much farmers are a component of that hasn't been surveyed as extensively. they are going to make an impact on this election. shery: do we know at this point if the farmers are being helped? theust this morning agriculture secretary was talking to an audience about this plan the administration has been putting together to help farmers in the event of a trade war. they are timing the revealing of that around labor day and the reason for that is that's when the harvest is coming in. at the current time you are not seeing a lot of day-to-day implications of agriculture.
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that's based on the next marketing year with the usda projecting that farmers are going to get $.75 less a bushel oversold beans when you have a 4 billion bushel crop is farmers planted more acres of soybeans than corn for the first time in 35 years this spring. bet and farmers could lose this year. shery: bloomberg news correspondent alan bjerga, thank you. sign up for the bloomberg newsletter. bloomberg politics.com. get the latest on global politics in your inbox every day. coming up, meredith sumpter the head of research strategy at eurasia group will give her on the latest on china tariffs. this is bloomberg. ♪
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>> i'm mark crumpton. new york, new jersey, connecticut and maryland are suing the federal government over the republican lead tax overhaul. the legislation caps the
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deduction for state and local taxes at $10,000. andrew cuomo claims the tax bill is unconstitutional and was crafted specifically to hurt blue states. iran says there is room for nuclear cooperation with the united states. the spokesman for the nuclear agency of iran said it wants washington to stop its hostile policy toward tehran. pulledpresident trump the united states out of the landmark 2015 nuclear deal because he felt it wasn't strong enough. or migrants and refugees have arrived in spain this year than those who have reached italy. people have,000 reached spain so far this year. aid groups have reported a rise in the crossings to spain and greece compared to the previous year while arrivals in italy are down almost 80% from 2017. the united states is expecting north korea t

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