tv Bloomberg Markets Balance of Power Bloomberg November 19, 2018 12:00pm-1:00pm EST
young. >> i am kevin cirilli. welcome to "balance of power." >> an interview with jeremy corbyn and an interview with presidential candidate john delaney. let's start with trade and a global showdown. vice president mike pence and xi jinping traded jabs, showing there are no signs of a coming truce in the u.s.-china trade war. againkind has once reached a crossroads. which direction should we choose, corporation for confrontation? or zero sum game? the future hinges on the choices we make. clear, theake this
initiative is a platform for cooperation. principlesd by the of operation for a share of the benefit. a is not designed to have geopolitical agenda and it does not exclude anyone. >> the united states offers a better option. we know joan are partners in debt. we do not coworker's compromise. we deal openly. r a one-wayffe road. we all prosper. washington, we welcome the president of the national foreign trade council. great to have you. there are concerns we are moving toward that zero-sum game of the cold war. what would that mean for some of your members which includes caterpillar, general electric?
>> it can't be good for those companies. we understand why it is important to challenge some of china's practices. we also are concerned that the governments find a way to deescalate these tensions and work with each other. the u.s. needs to gain support from the international community from our other trading partners. to put pressure on china to change. we have said a unilateral approach with escalating tariffs can't be good for our economy or china's. it is better if they find a path forward. i hope the president will be able to do business when they meet later this month. shery: the u.s. plans to increase tariffs on chinese goods to 25%.
are your members ready for this? >> we think it would be a mistake. it is going to have an impact on u.s. consumers and industry. our globalfs hit supply chains. companies really depend on the global marketplace, global production. the retaliation by china which has hit agriculture in a big way -- january is when this is going to come to a head. what can the u.s. and china get out of it? >> i don't think you can expect a concrete deal. the best we are going to get is an agreement by the leaders on a path forward, sort of a deal framework. kevin: what is a win from your perspective knowing these tariffs are coming? >> a willingness on china's part
to talk about these issues that xi jinping seems to be saying her off the table. it, made ins of china 2025 policies, with respect to technology, ip, other things. a willingness to talk about it and on the u.s. part, a willingness to back off from tariffs while the two are negotiating. the wto can play a role. they have already said we want to reform the agenda to address these issues. it might be easier for china to deal with these issues in a multilateral context. shery: you mentioned the need for a united front. we are expecting the u.s., mexico, and canada to sign that nafta 2.0 deal.
how optimistic are you it will get through congress? get think it is going to through. not without difficulty. from our point of view, the business i represent, we are imposing national security restrictions on canada and mexico on steel and aluminum. that is the biggest concern because it is incompatible with a new agreement. we should not be using national security on free trade partners. kevin: can democrats give rid of that from mexico and canada? especially as they negotiate? we are pushings hard for it. we just send a letter, a very broad alliance of farm groups saying we need to get rid of these things. they have created tensions and retaliation. we hope democrats and
republicans will look at that seriously. there is a lot of support for getting rid of those restrictions. kevin: and that would really speak to a democrats need. i don't see how they vote against it at all. >> i think you going to have democrats ready to support it. the outcome of this election demonstrated there is support for north american trade. wein: rufus yerxa, appreciate you coming in to washington to break that down. shery: trade tensions putting pressure on the markets. tech leading the way down. let's get the latest. >> very much risk off in the u.s. a bit of a slump. and nasdaq lower today. the s&p 500 and the dow putting friday's rally behind them. the nasdaq falling for a second day. let's take a look at the s&p 500 and its performance.
it has been sliding all day in the u.s., the negative news keeps holding, investor pessimism about the trade tensions. mike pence is comments. of company news, the rest ghosn. let's take a look at the tech laggards. we have apple down over 3%. it is sinking on reports it had cut production for the iphone models. sessions outr six of the last eight. nvidia is down 6% today. cloud service providers like cell force and adobe falling as well. bitcoin.to talk about
this is eight days of bitcoin. eight down days. from 22%, the most ever. this increased regulatory scrutiny is a catalyst there. one chart which we should be able to bring up now, which would show you, this is bitcoin and this is the key indicator. you can see at the bottom, it is at its lowest ever level. shery: thank you for that. coming up, theresa may goes on the offensive trying to sell her brexit deal as parliament letters role in with growing support. the view from paris next. this is bloomberg. ♪
kevin: this is "balance of power " on bloomberg television. shery: i am shery ahn. we had to mark crumpton. president trump says the united states will issue its own report by tomorrow. he denies the central intelligence agency has made a judgment in the matter. according to media reports, the cia has included the saudi crown prince ordered him to be killed. the white house is refusing to return the press pass of jim acosta this by the court ruling. he told him to reply with his own arguments as to why he should be able to keep it. his lawyers wrote back saying it would be a violation of his a rejection of the court's decision. theresa may is appealing the
.oters to back her brexit plan she urged them to listen to what business has to say because business is providing jobs. like the planness because it points to a future relationship of close ties with the european union. the deadliest fire in california's history has created unhealthy air. in some parts of the state, the air-quality exceeded world health standards by 60 times. the poor air quality is likely to remain. people are confirmed dead with 1000 others missing. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. sticking bysa may
the draft plan despite criticism . may spoke today at a conference. may: it was never going to be easy or straightforward. we have a deal that will work for the u.k. i am determined to deliver it. we welcome now a senior fellow who joins us from paris. great to have you. we are seeing prime minister may more and more these days. she seems to be appealing directly to voters. how important is this strategy when those 320 votes she needs to professor plan seem to be in doubt? >> first of all, the parliamentary vote is not until next month. she has leeway.
secondly, the withdrawal agreement with the exception of the one item, the potential which politicians have had a difficult time explaining. it is actually a u.k. option. that,he exception of which would actually avoid the backstop everybody wants to avoid, the withdrawal agreement is done. when theresa may goes to brussels, she made it clear and today,it from brussels the focus is on the political declaration. the political declaration is a description. it is a declaration. not in agreement. it is political, not legal. there is leeway for theresa may to go to brussels and come back and say i got these concessions for you. is by thery clear
time it comes to a vote, if there is a vote of no-confidence, it looks like she would survive that. she has shown the last few days to the admiration of a lot of people she has a lot ofgrit. if she survives the vote of no-confidence and this deal goes before parliament, it is going to be a choice between this deal or no deal. nobody wants to crash out. there is no way to renegotiate. shery: we are hearing from the spanish foreign minister that they need more clarity on the future status of gibraltar. is this going to be a risk? well, what is remarkable is how fantastic the job they have done.
this is the first time we are hearing anything remotely suggesting that the eu are not and behindtogether the commission. i don't think it is a risk. once again the political declaration is political. it is not a binding agreement. it is a natural time for the spaniards to say we have an issue. i don't think it is going to solve anything. kevin: let's go to where you are, france. thatrote an op-ed saying the french president needs to shift his tone and recalibrate on policy. you say macron needs to successfully woo the french people making them understand he cares about them. not that they should care about him. what is the first thing he can do to do that? the first thing he can do is
to explain. as a wrote in that piece for the new atlantic, the blog post of the land council, great leaders explain. taken it for granted he will be judged on his performance. we have tong underscore is france has a very solid system. he was elected for five years. we are not going to see the kind of instability we see in the u.k. the parliament was elected for five years. he has a strong majority of parliament. there is no question about his ability to govern. there is a question about inspiring. is 75%roval rating against. kevin: it is worth some president trump's.
ask, washat i want to it smart for him on a policy front to do what he did the other week with regard to national security and get in that twitter back-and-forth with the president? >> i don't think he needs to troll trump. he has tried everything he can. his image in france is not a function of his relationship with trump. it is a fact he seems to be detached from the concerns of the french people. as a wrote in that piece, while defendingking about the international order and his vision for europe and enlightenment values, people were in the streets demonstrating. they don't want fuel prices to rise. the problem is the president of is president and prime
minister. he needs to actually address the concerns of the people by explaining his policies. the reforms enacted earlier this year, for example changing the labor code, are not going to kick in. a year or two.r he needs to bring the french people along with him. thered in this interview needs to be a better connection between the top and the base. the topping him and the base being them. that phraseology does not go down well. shery: how much more difficult will his job be after angela merkel said she will no longer head her party? well, that remains to be seen. to be a lameng duck in terms of getting legislation through. everybody knows angela merkel
is not going to be there anymore, that might actually give her more room to maneuver on some of these philosophical issues. what macron called for yesterday, in the absence of doing it with italy or the other eu countries, it is really france and germany. the old franco german voter that would have to move forward on a european vision. the other problem which i hasted out is that macron yet to articulate a new forward-looking vision. he's talking about the values, theh he talked about, values that got us here. not about the values that are the list mind -- the populist mine. kevin: it is so interesting. we talk about the trade policies, theresa may, macron,
about russian activity perhaps longer than they had disclosed. employed aad research firm, the platform being used by extremist groups. what we can see is how that negative news sentiment has affected the stock price. take a look at the chart which shows you how that has happened. the green bars are positive sentiment. the red bars are negative. the white line is the stock price. you can see how it has fallen off a cliff. all this means is they are coming under pressure from washington. threatening more regulation. sayingeard from senator they could impose regulations. d.c. republicans and democrats are asking one question, do they get it? this is a policy crisis.
emma: exactly. facebook is treating it as a pr crisis. congressmen and women in washington looking at ways they might be able to fix this in terms of regulation. there have been reports talking about the democrats who have been allies of silicon valley saying they are starting to sour on big tech and one of the things they might do is go after them. shery: when you see facebook stock, you see the net worth of mark zuckerberg go down. his number is not a bad place. it is a significant loss. emma: i would not mind being number six. [laughter] $17.4 billion since the beginning of the year. 25% of his net worth.
facebook's market cap has been down. it is not a good year for facebook or mark zuckerberg. shery: thank you so much. billion dollars. coming up, an interview with labour party leader jeremy corbyn. he just stopped speaking at a conference and he said a no deal brexit would be appalling. from new york, this is bloomberg. ♪ [ phone rings ] what?!
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washington. we go to mark crumpton. mark: three senators have challenged the appointment of matthew whitaker as acting attorney general. richard blumenthal of argueticut and to others that the appointment violates the constitution because whitaker has not been confirmed by the senate. they are asking a judge to declare the appointment unconstitutional and prevent whitaker from serving as the head of the justice department. the united states closed off northbound traffic at the border crossing with mexico today to install security barriers. hundredsone day after of residents protested against the presence of thousands of central american migrants. the was closed one of two crossings to prevent any mass rush of migrants across the border. gave hisbia's king first major speech since the killing of the journalist.
he expressed support for his son and made no mention of u.s. allegations that they ordered the killing. his speech highlighted priorities for the coming year and focused on issues such as the war in yemen, stability in the oil market, and countering iran. the official and charge of the 2020 tokyo olympics says national spending is billions last then a recent audit showed. earlier the government said they were spending $7 billion and reachted spending would 25 billion dollars. the olympic ministry said only 1.5t spending was billion, including funding for a new national stadium. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 100nalists and analysts in
20 countries. i am mark crumpton. this is bloomberg. on societeking news generale. the company has agreed to pay $1.3 billion on a settlement over u.s. sanctions violations. $420 million to the state of new york. $54 million to the treasury department. this was one of the big allegations. we know they have actually set to settle billion this investigation. they have agreed to pay 1.34 4 billion dollars which was less than bnp paribas. now we are hearing that societe generale is paying $1.34 billion
on this settlement. $420 million going to new york. $81 million to federal authorities. let's bring in greg pharrell, for what this means. great to have you. setnow societe generale aside money for the settlement. >> yes. it has been years in the making. looks like they reserved an appropriate amount. the actual amount is not stunning or a surprise. they did a good job preparing the marketplace for that. this is the second take resolution from socgen this year. in terms of the u.s., these are the major ones that were hanging over. shery: why does it get such a dea deal?tlement
>> the conduct is different. the regulators said the bank was helpful and cooperative in helping resolve this. wasof the problems with bnp a took a while for them to become helpful. the justice department hammer was because they judged bnp not fully cooperative in that investigation. that sent a message to all other banks to play ball and be clobbered if, which socgen was -- cooperative, which socgen was. they became an open book. shery: thank you for explaining this breaking news on societe generale. kevin: now it is time for 2020. the midterms are over. one of the first declared candidates is john delaney. . remember chasing you around you have been in ios several
times. on the issue of trade, you set yourself apart. trans-pacific the partnership. i think obama was right for foreign policy and aren't you a -- our geopolitical positioning. the president is a nationalist. kevin: you are a globalist. part of a global economy has been good for us. it is not good for everyone. iowaell that by going to and showing what you're going to do. a mistake to become part of the global economy. it was a mistake to not do real things for people who were left behind. we have seen dislocation in this country. we should have done is decades ago to ensure investment capital , people have the skills they need to get a job in the new
economy. we did not do any of that. fighting.o busy i have an agenda to get capital into places. to make sure people have the skills they need to get a job with the jobs we have today. i have an agenda to balance off the effect of trade. how will democrats taking the house affected these issues? we have heard from a key democrat saying even the nafta deal would need to be renegotiated or it would be dead in congress. that agreement has to be approved in congress. we should have a debate. i am hoping, nafta 2.0 is part of tpp. i hope we get the right kind of conversation we should have. be verythat deal could beneficial to the united states. shery: you will not be in congress next year. we are seeing talks over the leadership house.
more than a dozen democrats pledging to vote against nancy pelosi as house speaker. give us your thoughts about the leadership. >> nancy pelosi will be the speaker of the house. she has tremendous support. i think she has earned it. what she did to win this election, but i do think what she needs to do is lead the caucus through a discussion about the next phase of leadership. how does she manager succession? running against her. she is in a good position and deserves to be the speaker. i also think it is incumbent on her to actually begin the conversation -- kevin: i was reading in the a glowing post, endorsement from george will.
how do you mobilize centrist voters? theicularly when we hear bernie sanders crowd, they are motivated. >> this midterms is a roadmap for the party. the candidates who won the key ran onthose candidates being inclusive. centrist. the country in general, this country is either centerleft or center-right. has andemocratic party opportunity right now to be the party of the mayor -- the american people are looking for. is how dol question we take this divided nation where american is against america, and the president encourages that. kevin: you were the youngest stockxecutive on the
exchange. was a smart for amazon to split up those headquarters? i'm a big believer in the washington metro area. i would have loved to have seen amazon put one headquarter in a not been doing well economically. washington, d.c., new york, these places have had good decades. i would have loved to sing a headquarter in a place that has had a harder time. one problem in the country is venturer 80% of the capital went to 50 counties out of 3000. kevin: talk about the swamp. in a countyds live with no upward mobility. i would have loved to see amazon go to a place that was struggling. they did not do that. which isit in d.c.,
great. shery: talking about tech companies, visa has been really hit. assumption about a blue wave or not, more regulation will be put in place. where investors right? regulation around privacy. what has happened to the privacy of our citizens the last 10 years is something that needs to be at the forefront of public policy. i have called for a national artificial intelligence strategy. don't have a coordinated strategy between the private sector and the public sector to ensure this technology plays out . children, which is where my wife and i have done a lot of work.
she helps to run a nonprofit on this issue. we have a right as citizens to say what our data can be used for. markets factorhe that in, i cannot say for sure. to the extent that is what they are doing, they are probably right. the american people want it. i will talk to citizens about these devices and i will talk about how, are your children addicted to these things? every head nods. kevin: should hillary clinton run again? >> no. we need new leaders. congressman john delaney. thanks for jumping all over the map with us as we break everything down. shery: let's break down the markets right now. u.s. stocks at session lows. led down by tech stocks. taking a beating right now.
here's theresa may to call a vote so lawmakers can express opinions. here is part of that interview. i think the likelihood of her changing her mind is small. she does not often change her mind. they will go to -- if i gave her say that thisd proposal to the house of commons straightaway. you have 500 pages of it. >> it has to go to brussels first. >> not really. it is agreed with her commission . why go to brussels first? , yes, fine.brussels we like this. it is defeated in the house. what does that do for you? , we are going now to run out of time. you showed a graph earlier which said deal or no deal.
the no deal vote leads to chaos. it does not. it goes back to talking again. >> if there is a leadership challenge, is that not too close? if it is between this deal or staying in the eu, i would support the prime minister. it depends on how long it takes. who knows. i think probably if you had to have a challenge, there are risks in it. option ismuch better to put the thing to the house now. what is driving people is a fear they are going to go to christmas with this vote. then you are out of time. yout is not clear, negotiate. you don't have time to ratify. one thing that happens in london is they tend to take the
brussels assertions as the god-given truth. it is not. it is negotiation. deal would be uncomfortable. more comfortable for some of the european countries, island, holland. belgium. and parts of germany. they will talk. dealat chances of a no inadvertently? there is a constitutional crisis. it gets messy. there is a crash. havee fact you ratification will give you three months. my view is the government should be ramping up the preparations anyway as a matter of standard procedure. there are a variety of no deals. the bare-bones no deals. people talk about aviation risk.
that is not going to happen. we are going to sort that out. data risk. we will sort that out. --mr. davis, if they're if there is not enough letters, would you support her? is this a one-shot? >> no. my view is this deal is no good. it is actually worse than membership. it, and it down to is between this deal and no deal, i would rather go for no deal. shery: that was the former brexit secretary. kevin: ghosn is gone. there is trying to out chairman. what this means for the future of the company. this is bloomberg. ♪
watching "balance of power." dalio shery: dali i am shery ah. . we know that democrats are theng a u.s. court to void appointment of mr. whitaker as the attorney general. what is the story? kevin: first and foremost, the are going to be questioning matthew whitaker, calling him to testify. that december 7 deadline of the partial government shutdown, look for democrats to try to get some clarity on matthew whitaker and some protections for rod rosenstein. that is where this is going to be interesting. aires.ot one buenos poised topelosi seems
get the speakership next thursday. how much of an opposition she faces and how difficult that could be we will know after the weekend. shery: we are in a lame session in congress. a deal on the farm bill could come any time. let's move on to another story. ghosn is gone. nissan looking to remove him as chairman on thursday after he was arrested in tokyo for breaching financial loss. nissan says he misuse assets. mitsubishi motors is looking to remove him. let's bring in our auto reporter. of course mr. ghosn the head of nissan. what are these companies saying? >> we have had nissan and
mitsubishi say they are going to look to oust him as chairman from the board of both of those companies. not gone to this point. you've also had the french state come forward because they are the biggest shareholder and say their interests are going to be protected. they want to preserve this alliance. it is important they come to the defense of this alliance because ghosn exiting the picture for thesethe outlook companies. he was key to these three. he was really the face of the franchise. shery: not only the face of the franchise, the face of the business community in japan after the 1990's. there was such a cultlike following for mr. ghosn. basedk they had a manga
on what he did. this is a huge fall. >> absolutely. , his role as deal and moste first prominent foreign executives. japan was a very insular closed group reflective of the broader culture of japan. assn was looked at initially , can this foreigner nissan turn around? code like is fair to say. he was a comic book hero. a titan of industry within japan. he very much was celebrated up to this point. it is really a shock to see him go down this way. the way.osn is out of you have escalating trade
tensions between the u.s. and japan. what does nissan have to do? the japanese have been willing to work with the u.s. ast did they need to do these trade spats continue? loss in termsuge of a voice of the industry to be able to vouch for globalization and free trade. there's been a lot of effort to explain the good side of free trade and speak about why we and opentariffs borders. nissan and ghosn, it was hard to .ind a better person born in brazil. spoke many languages. he is now out of the picture.
fiat took that mantle. he passed away. you have this void of leadership that is going to be difficult to overcome. there is not a clear answer to how they overcome this anti-trade rhetoric. shery: and while you have the s on them, thank you for that. sign up for the balance of power newsletter at bloomberg.com. get the latest on global politics in your inbox every day. and of course tune into "balance of power" tomorrow. we have an interview with the morgan stanley chairman and ceo. this is bloomberg. ♪
despite a court ruling. wrote saying it's a violation of his constitutional rights as well as a rejection of the court's decision. his lawyers about the white house to issue a final decision by 3:00 p.m. today. israel has avoided early elections after a key polling partners said he would not withdraw his party. education minister said his giveline party would netanyahu another chance to address the security challenges facing israel. netanyahu responded saying he does not need his help to govern the country. a proposed united nations resolution is urging yemen's warring parties to restart talks to end the three-year conflict and take urgent steps to tackle the world's first humanitarian crisis. the resolution calls on the yemen government