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tv   Bloomberg Markets Americas  Bloomberg  November 27, 2018 1:00pm-2:00pm EST

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northern ireland place in the u.k. by potentially tying the region to you you rules indefinitely. lead fosterthe eu tells bloomberg that her trip is likely to be a waste of time. a day after president trump's former campaign chair paul manafort was accused of relating a plea agreement in the russia probe, the president has accused special counsel robert mueller of "ruining lives." the president tweeted today that the mueller investigation -- when the mueller investigation and scum it become evident that people were treated "horribly and viciously and people's lives are being ruined for refusing to live." -- lie." president duda one wants the united states to stop protecting them. turkey was angered by a recent u.s. decision to establish observation post in northern which washington says it is meant to warn turkey of any dangers -- dangers
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heading its way. in mississippi, voters will decide the last u.s. senate race of the midterms. republican cindy hyde smith faces off against democrat mike sb in a runoff. mississippi has not sent a democrat to the senate since 1982. hyde smith has been accused of racism after saying she would take a front seat at a lynching. it is not certain if that will hurt her support. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. vonnie: it is 1:00 p.m. in new york, 6:00 p.m. in london, and 2:00 a.m. in london. i'm vonnie quinn. welcome to "bloomberg markets." ♪
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vonnie: from bloomberg world headquarters in new york, here is a top stories on bloomberg and around the world we are following. trade are falling as tensions flare up. president trump signaling he may boost tariffs on imports once again. has democratsnts criticizing the president. the chair joins us from washington. shares take another dive we speak with the analyst who sees a fresh warning sign for the company's finance. first, let's get to markets. with abigail doolittle. abigail: we are looking at declines. really not a lot of conviction. the doubt -- excuse me, the s&p 500 and nasdaq have been flipping between small gains and losses. the dow has been down all day. lows, one way to on the day, take a look at apple,
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down 9/10 of 1%. this is all following yesterday's rebound rally. right now, not making that happen. an intraday look at chart of the nasdaq, we will see it on the day. lots of volatility here. you can see opening sharply lower, down 9/10 of 1%. the bulls taking over. it will be interesting to see this type ofon action where there is really not a lot of conviction. investors waiting for more news. where we have a reversal, let's take a look at the philadelphia us in a conductor chart. the stock had been down 1%. now it is up to 10 sub 1%. it had been up 1% all of these trading higher. they had been up more. not specific news, but by the dip action. this sector has been under pressure. if we hop into the bloomberg, let's take a look at the pressure. the stocks have been rolling over on the year. this terminal chart shows that. it is a one-year chart. we see a sideways trend, a
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battle between the bulls and bears. the last all-time high back in march. the last all-time high was in august. we also see a death cross going through the 200 day moving average. air pocket of buyers. it will come down from the moose -- the most area of conviction. the last two below the orange line went to the bears. let's stay tuned. we are probably looking at new year today lows for the stocks and major averages. a bearish tone for the stocks despite today's long gains for the stocks. vonnie: we will see how the next four or five hours straight out. thanks, abigail. more tariffs on the horizon in an interview with the wall street journal, president trump says remaining imports from china are not safe from levies. he said this, if we do not make a deal, i will put the two hundred $67 billion additional tariffs on. the only deal would be china has to open up their country to competition from the united states. for more, let's bring economic policy reporter sarah mcgregor.
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it sounds simple but there is more to this than china just opening up. china can say it is already doing that, right? sarah: absolutely. we even heard from china's top negotiator in these trade talk saying china is accelerating changes to its state enterprises which is a big beef of what the trump administration subsidies made in 2025 planes for the high-tech injured -- industries in china. also, it is opening up its economy to competition and making it more fair for u.s. companies. is the exact complaints of trump that china is not doing these things. it is hard to see where they will find common ground with china on one side saying it is moving ahead with reforms and the u.s. not satisfied with what they are doing so far. vonnie: right. the dialogue so far has been a bit of a stalemate. what could president trump and president xi say to each other that might move one pillar off its goal post? sarah: yes, a lot is riding on this meeting between trump and
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xi. the white house is saying that exactly, but this will be a significant meeting. , what wehe two sides will see as a outcome is either there will be a further escalation of the tariffs, or they agree to some sort of truce and hold off on any more fire on the tariff front. whatnk we do not know yet the trump administration is really going to settle for. facing seem to talk about the trade deficit, about widescale changes to china's economy. it is not clear if they are willing to settle for one or all -- or seeking winds on all of these items. we will have to see when they meet, what happens. we know when trump tends to meet with officials, he comes out with a deal and saying, we have made amends. then trouble ensues after that as they try to implement the deal and come up with the nuts and bolts of it. are thebriefly, what constituencies in the united states that are watching this meeting most closely?
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sarah: i think obviously industry, there are all sorts of whorters now and importers fear retaliation from china who have been hit by these tariffs that the u.s. is put on place for their products. if trump does go through with tariffs on all goods, he has even said this might take laptops, i found. i think we can count on consumers, wondering whether those products will be hit and prices will rise. sarah mcgregor for us in washington, d.c., thank you. u.s. markets also feeding -- feeling be impact of trade tensions with china. falling as we saw there. about 2/10 of 1%. they were lower earlier. idiosyncratic stories and their there too. let's get more. how much our markets moving on these trade headlines? it is not as if many of them are new? >> that's right. thank you for having me back. year, flash back to last
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a lot of these types of headlines were ignored as the market continues to roar on with little volatility in the same quarter of last year. you are one is that year further into the cycle, you have got trade tensions that are escalating, that you have got stock valuations that are more attractive than they were at this point last year. it is providing good opportunities for investors to pick up risk assets. vonnie: you seem to be suggesting u.s. stocks are a nice place to go fishing. where would you look? lowell: we think the right place to go fishing right now is an emerging markets. emerging markets have been lagging the broader markets for many years. part of that is from the u.s. perspective because of the weakness and emerging-market currencies. you have a couple things that play. trade tensionsse could actually provide a catalyst on the upside. some right tail tail risk is good for investors, if there is a surprise out of these negotiations. we think that may happen because
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there is a lot of incentive for china to make reforms. second to the trade tensions is china is actually at the late innings of their reducing their debt exposure and actually starting to simulate the economy. a few weeks ago, they increased lending to private enterprises. those are good signs there. and a state owned enterprises are being reformed. they are being pumped with private capital and they are being operated more like western companies. there are some good things happening underneath the headlines. vonnie: what are you asking of your managers to go looking through fx for a or how would you play this? lowell: we always say emerging markets is a hodgepodge of many different individual countries. and many individual stocks p you have to actually filtered through those stocks that are in a position to benefit from these reforms. broadly speaking, the other
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thing i would mention is that with energy prices weakening, that is usually a negative for emerging markets. that with the restructuring of the indices to have more net importers of oil, that could be another stimulus for emerging-market growth. vonnie: does it allocate more to e.m., where would you be taking from? developing markets? lowell: one of the areas we would look to take some money off the table would be in investment grade bonds. investment-grade bond spreads have come in narrowly. then the -- the risk return trade-off is actually less than it was historically. we have not yet taken money off the table in high yields and that is because spreads have moved out. another area we are thinking about and looking closely at is in the high-yield space. if we see spreads go out more, we think high-yield is another area to look at because you will be looking at a total yield in basis point level. that is a kerry to generate in a lower environment. vonnie: lowell, thank you so
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much. that is t. rowe price head of asset solutions in nora -- in north america lowell yura. trouble brewing for its finance arms. that is next. this is bloomberg. ♪ this is bloomberg. ♪
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vonnie: welcome back. shares are down more than 2% right now admit new warning signs for its finance leasing.he face of it is selling trouble for the company according to our next guest. let's bring in gordon haskett's analyst john binge viewing have had a sell on ge for more than a year now when it was back around $30. now we are seeing its stock price at 741.
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down 57%. you are seeing a major hurdle on the horizon as well. explain it to us. john: it comes down to credit and too much debt. currently, they obviously fire their previous ceo after 14 months. the current ceo has adopted a tact of selling everything that is not nailed down. they sold baker hughes, a big offering of baker hughes at $23. they are selling baker hughes a year after they bought baker hughes. in below what they paid for the first place. it is telling you this company needs money, there is a crunch of some magnitude, it is still not entirely clear what it is but this company desperately needs money which is why they are selling everything but the kitchen sink. vonnie: are you suggesting the capital arm and be sold off, or can rescue ge in some way? john: the capital arm cannot be sold off. ge industrial backs 100% all of
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the debt instruments of the capital company. the issue is how much debt on balance sheet and off-balance-sheet, what recourse, what about the liabilities, lawsuits, government investigations? it is the unknown of how much debt there actually is which is why the company is scrambling to raise as much money as they can. that is what the paradigm issue is cap the backdrop of the global economy weakening is not helping matters. their aviation business, the crown jewel of the portfolio, is at a cycle peak. in the 15th year of the 10 year recovery. theoretically, it does not take much to knock some of these other business pillars off their perch, if you will. the risk return is relatively difficult at this point. vonnie: how much confidence do you have in him given what he has done so far? seen,so far, what we have he has reiterated the playbook of the prior ceo who was fired. he is splitting the power business into two and hiring more management layers. he's a very accomplished ceo.
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his skill sets were in business reengineering at a factory floor level in m&a. not necessarily turning around are working out a time per folio with excess debt and credit of challenges. himar, i'm willing to give the benefit of the doubt. the issue comes down to the concerns of credit as you have seen in terms of the bond spreads blowing up and as we have said from the beginning, this is not the company with all of this leverage he would want to own going into an economic softening. particularly one we have come -- we have come from such a high level, now going into what we are going into the economy. it could be tricky. vonnie: you are flagging this -- at what point does it become a self-fulfilling process -- prophecy? john: the worst case scenario would be insolvency. that is not something we are anticipating. if they sell enough things, they continue to buy themselves time. there are other assets they
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could do. they still on half of baker hughes. they are running out of bullets, i would say, in terms of potential other valuable pieces that could be monetized. health care could be one of them. it still does not seem to be helping the shares gain a footing. the points you made about the whatess is a microcosm of could be problematic in their portfolio. they have insurance liability, tax liability, much more than what the analysts look at at the balance sheet. you could be talking about billions more. they are selling everything they can settle at this juncture. thate: i want to mention ge said milestone continues to perform well and is expected to be profitable this year and next year. it is part of ge capital aviation services. i will quote now, "milestone shares a number of industries that it currently stands at approximately 90%." is that taking the spotlight of the actual issue? john: i think milestones and
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mike -- is a microcosm of what could be problematic within a finance portfolio. let's take a step pack -- back. the portfolio was comprised of 3 billion of helicopters, today it is four. that means i have invested another one billion dollars into inventory which they leased out. the actual casts -- cash cost is a nexus of $3 billion which if you go by their numbers, they are earning $50 million. that is over 1%. that is not very impressive. capital isf ge losing 2 billion dollars a year if you exclude gains. the entire aircraft leasing business for their numbers is $1 billion of profit. if you subtract that, the rest of ge capital is losing an excess of $3 billion every year. this is why they are looking to raise as much money as possible to put into the portfolio to plug these potential liquidity gaps. vonnie: with a $10 price target,
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our thanks to you. john: thanks, vonnie. vonnie: breaking news. president trump and president she set to meet for dinner on saturday at the g20 summit. that is according to larry kudlow. trump and xi will meet at dinner. trump surprised aides with a a fewoxi -- a call to xi weeks ago. they are still divided on matters. trump is hopeful on china talks but is ready with more tariffs. still ahead, tom perez will be joining. this is bloomberg. ♪
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an interesting conversation coming your way. dnc chair tom perez is with kevin cirilli. kevin: thank you. chairman perez, thank you for being here. have plantaying they closings what you make of this? tom: this is irresponsible.
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i can't help but note the fact that they got $157 million tax cut from the reckless tax bill of last year that president trump said was going to be a boon for workers. it has not been a boon for workers. workers have been taking it on the short end once again. before the 2016 election, this president promised in michigan that you will not see one plant closing if i'm elected president. i promise. that is what he said. we have the carrier plant, and missouri, the harley plant, we have the chevy plant. again, we need to put workers first. not the tax cuts of four large corporations. front let's pull up the pages. they are calling it a new black monday in the states because of these closures and you also have of course what is going on with regards to the g.m. that
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forecasted this back in january. you said -- you linked it to the tax proposal. how are democrats policies preventing this? community, they fire people, don't fire people. they will find something to blame. how would democrat policies have prevented this from happening? tom: when you invest in workers and you look at this administration, they have talked the talk about how we are trying to help workers. show me how they have done it. you have seen more plant closings because you are not investing in workers. they said the reason for the tax cut is they will use the benefits of this tax cut to plants.n modernizing to invest in making sure our workforce continues to be the best trained workforce in the world. that did not happen. they used the tax cuts to give stock buybacks to their shareholders are that is not how you do it. what democrats would have done -- first of all, we would not
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have done the reckless tax cuts for wealthy corporations. we would be continuing to invest. when you invest in human capital, you can whether these apps and downs. gm and i think it was the right thing to do at the time. during theirthem toughest hours. now when you have challenging times, you need to make sure you put workers first and you are investing in them so that you can ride this whatever storm it is. and refuel so they can invest in electric stars -- cars. kevin: there is a dramatic shift, it is interesting to watch wall street reaction to g.m. which has been a sign of confidence versus the reaction on main street in washington. the president is critical of the report regarding global warming. i take it you would disagree with this criticism of that report? this, the day after things giving, on black friday, they released the report.
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they released the report because they were hoping it would get buried. all you have to do is go to the west coast right now and i was in los angeles recently, and the the impact of climate. what that report also shows, put of this, human element the human tragedy, the loss of lives, the loss of an entire the case of one community in california, the report again documents that if we do not do something about climate change, this is going to have a dramatically negative affect. not wantpublicans did to innovate. they say innovation is the way to get out of climate change. tom: actually, this president has denied climate change is a problem. that is one of the fundamental questions we have to confront. me a lot like tobacco where you have the industry for decades denying that cigarette smoking caused cancer.
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no forgetd with -- the party of lincoln's death. the party of trump does not believe that climate change is real. we have a basic problem. itin: we will have to leave there. tom perez, chairman of the dnc, thank you for coming on. pleasure to have you on. vonnie: our thanks to kevin cirilli, chief washington correspondent with a tom perez, the dnc chair. we are going to be looking at the markets next and to give you a tease, the dow is down one quarter of percent -- of a percent. the s&p 500 down. united technologies weighing on both. it is down almost 6%. this is bloomberg. ♪ this is bloomberg. ♪
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i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience.
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my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. [ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. ♪ >> i am mark crumpton with bloomberg's first word news. president trump and china's meetxi will
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marking -- larry kudlow says that mr. trump is hopeful for a breakthrough but is ready to impose more terrorists as they upcoming talks do not yield progress. consideringnion is whether britain can change its mind about leaving the e.u. prime minister theresa may is facing criticism from u.k. politicians and president trump are you -- president trump. the court decision is expected to take several weeks but could last into the new year close to the you k's the parts or date. the saudi crown prince is hoping image abroad and reinforces ties with allies following the killing of the saudi writer jamal khashoggi. he will attend the summit in argentina next week where he will come face-to-face with
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leaders including president trump, after denying any knowledge, they said he was killed in an operation aimed at forcibly bringing the writer back to the kingdom. in observance of world aids day, secretary of state mike pompeo is praising the progress of the battling the aids epidemic in africa and elsewhere. the program was started under the bush administration in 2003. at thery pompeo spoke hiv technical summit. an 2003,the launch thanks to strong support of three presidents, we have saved more than 17 million lives. we have provided millions of new hiv -- prevented millions of new hiv infections. the hiv/aids epidemic is --
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towards control. pompeo calledy the program one of the great american triumphs of the 21st century. global news, 24 hours a day on air and on @tiktok on twitter powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. ♪ >> live from toronto, i am amanda lang. >> and live from new york, i am vonnie quinn. we are joined by both bloomberg audiences. amanda: here are the top stories we are following. it is a big week for fed speak. investors monitor comments from
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policymakers ahead of jay powell's speech tomorrow. a look about foreign gunmakers are feeding the u.s. appetite for firearms. and where is mark zuckerberg? the facebook ceo is a no-show at a u.k. parliament hearing. zuckerberg is facing a bit of backlash. meeting on as committee hearing to talk about fake news. one of them saying that he is seeing any mail that shows an internal facebook insiders knew about russian meddling in using their system. mark zuckerberg chose not to go and it seems like a bad decision in the midst of bad pr for the company. bonnie: -- does and it doesn't, and the other part of the strategy is that it could be seen as brilliant. -- he does not go, there is little to write about.
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is that perhaps zuckerberg is right not to appear. amanda: interesting argument, take the air out of the story. areking the markets, we seeing major markets digesting cross-section and crosscurrents of nutrient -- of news. some big name suffering as a result, including cap all, it has fallen again today and that is weighing on the nasdaq despite the fact that there are other tech stocks showing strength. netflix is powering higher. the s&p 500, materials are week. those two subsectors are weighing on this market. some big-name suffering today, but really it is the geopolitical that seems in the market's focus. vonnie: there is a lot of fed speakers and this week we are going to be talking about all of
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them in just a few moments, but if you look into my bloomberg, you can see the financial index, it is deteriorating. it is pretty anemically in the green, as the fed sees the rates hike. how it continues to see them we are going to talk about just now because the language has changed. the federal reserve is heavy on the minds of investors. jim bullard commented saying, whether there are cracks in the u.s. economy's performance is one of the major challenges for the said going forward. i do not have any reason to doubt that the economy would slow in 2019-2020. relative to where we have been. you also have the unwinding of the fed's balance sheet and as it enters year two, it is poised to affect everything. joining us now to talk about the balance sheet is bloomberg's
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reporter. to us about what has changed in your mind given what we have heard. thehat we are looking at is issue of funding rates. they are rising and people are still saying that there is treasury build supply am the market, that is what is causing it. the fed has come out and said it. that is affecting the market. is not going, that to stabilize and we have to say, there is another issue. vonnie: hold that thought to because we are going to get to the white house press briefing. in, larry kudlow is speaking. it is not actually the g20 when we counted up properly, it is much more than the g20. in terms of the u.s.'s
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positions, we are going to use this as an opportunity to talk about our measure of tax cuts, manipulations, and the job training and so forth that have generated significant economic growth. that includes women's economic empowerment, free trade, and the trade reform. discussions of the u.s. emergency as the dominant energy power in the world. the much discussed the meeting, it is going to be a dinner meeting. andeen president trump president xi. i want to mention what the president told us and that is in his view, there is a good possibility that a deal can be made. he is open to that.
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that, some caveats, -- certain conditions have to be met with respect to fairness and reciprocity as we have said. for example, issues of intellectual property theft must forced technology transfers must be solved, significant tariffs and the non-tariff barriers must be solved, issues of ownership have to be solved. the president will reiterate his view. zeroant a world of non-tariffro barriers, and the non-subsidies. that is the president's point of view.
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u.s. is coming to the summit in good shape. our economy is strong. it has grown at 3% over the past year. the second quarter was 4.2%. perhaps we revise upwards. holiday season, so-called black friday is very strong. we have had tremendous oil prices and gasoline prices coming down, and that helps consumers. we are in very good shape. china, not so good. --m not here to critique o or second-guess the chinese economy, but most observers see chinese in a slump. however, the president said there is a good possibility that we could make a deal. he is open to it. if these conditions i mentioned
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are not met, the president has he's perfectly happy to stand on his tariff policies. last $200 billion is scheduled to go to 25%. as recently as yesterday, the label for, if needi be and things do not work u.s.-china- in this summit meeting, he will invoke another 257 some odd billion dollar tax. things of and moving very slowly between the two countries, until the president himself called president xi and said, let's restart. then, he has made positive comments.
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we will see. . goals around growth and prosperity and our economy is in good shape. there's is not. john, do you want to add stuff to that ready woman to take some questions? you sure. okay, good. >> i would like you to address concerns from representatives of italy and france and germany that say that we are back and go away from the national stage and that russia will be the dominant economic force in europe and the middle east. can you address those and can you tell us about the layoffs gm? -- layoffs at >> regarding the russian story, i'm going to leave that to john bolton. the gm ceo yesterday
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and we had a lengthy conversation. it is a great disappointment, the president indicated his own disappointment. premature trudeau believes that the u.s.m.c.a. the was a great help to automobile industry and the auto workers. by the way, they made those statements separately. and yet, gm comes in right after the deal -- by the way, the deal will be signed in argentina and the u.s. canadian representative. there is great disappointment there. they would rather build their electric cars in china rather than the united states. we are going to be looking at certain subsidies whether they should apply or not.
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i cannot say anything final about that, but we are looking into it. as barry told me, i want to be fair, it may be possible to transfer workers to other plants in texas and michigan. i am not an expert on general motors, but that is what she said. obviously, there is a lot of the appointment, even anger. i've heard of from mr. trudeau, president trump, democrats, and republicans. >> do you think or adversely affect our economy coming into the christmas season? >> no. look, i do not want anybody to get laid off. same amount of pessimism that i am reading about maybe has to do with a mild stock market correction. let's not forget, we had 250,000
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new jobs. which was a blockbuster number. yearly gain in wages and a 3.7% unemployment rate, those are spiffy numbers by any benchmark. again, holiday season layoffs from gm, brutal. brutal, very disappointing. will it affect the overall economy? i do not think so. >> back to the question of the tariffs, if these talks with president xi go nowhere and we move forward with escalation of thetariffs, which would be biggest tariffs we have seen in your lifetime, what will the impact be on the u.s. economy? >> that is a long period of time you mentioned. my life. [laughter] so what will be the
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impact on the u.s. economy if we see tariffs go up to the degree you just described? >> you know, we will see what happens, ok. the president is going to make up his mind after the meeting. i will say this -- our economy is in very good shape. when you multiply through whatever numbers you want to use, 250 billion, or tack on another which may or may not rate ort a 10% tariff more, it is really just a fraction of our economy. thereot suggesting that are not winners and losers in that game. it is a complicated game. toare in far better shape weather this than the chinese. i appreciate your characterization, i am a free
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trader, but you have to ask yourself, and the slow president trump has been talking about -- is it free trade when there is evidence of unfair and wto illegal trading practices by china for several decades? is that fair? is that free? fair or when intellectual property theft occurs are when chinese ownership american ansferranceorce tr of technology from american companies to the chinese companies is that fair? president trump is the first at least 20 years, and i am including democrats and republicans, who not only has made this case, but continues to make this case forcibly and to take actions to defend american
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workers in our overall economy. raised thedents have issue and then walked away from it. president trump obviously does not intend to. under the heading i think for him of promises made, promises kept. it is something you talked about for several years and that is continued. if china would come to the table or the dinner table with new ideas and the new attitudes and new cooperation, as the president said, there is a good possibility they could make a deal. he is open to it. nothing is written in stone. --in, for the free tradeer, free trader, where is the free trade? for several months while i have been here, we would love to see a world of zero tariffs and tariffs, and zero
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subsidies. he is taking action because he thinks it will good us closer to that world. >> another gm question. when the president said yesterday, they better damn well open a new plant, does he have his consequences in mind that they don't? >> i'm going to leave that to him. you may have additional announcements coming. >> i wanted to ask about what the ambassador said to the wall street journal. -- hisnese ambassador thought was that there would be a real risk to global markets if there was not a deal. they could become fragmented. how big are the stakes if you cannot reach a deal? ook, the ambassador makes a
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point. if you would do his part or his government, we could all make a much better point. that is what president trump is saying. i will read you the quote again, there is a good possibility we can make a deal. certain conditions have to be met, have to be changed. is president in the spirit going to defend the interests of american workers, ranchers, small businesses. when he had one other point -- -- let me add one other point. the rest of the world agrees with us. theign of the u.n. trilateral agreement with the eu, the united states, and japan. worth looking at a document, which outlines what they call
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nonmarket abuses. just recently, before the shanghai conference where president xi was to give an , with no speech prodding from the usa, the ambassadors -- the french and german ambassadors to china aftera tough piece going nonmarket, unfair, nonreciprocal trading practicies. there is broad based support for the american position here which is china should change. it should come into the community of responsible trading nations. they can do that, right?
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they are a major economy right now, it is not like they were 25 or 30 years ago. we would welcome it. they have to take certain actions and to give certain assurances. at the g20, are you getting that support around your position? >> i am sure we well. tariffs are an attack on imported products that are paid for by the consumer. the president realize that the escalated taxes on tariffs will be payed -- paid for by american citizens? >> given the strength of our economy and the size of our economy, we are on position to deal with this and handle this very well. that is the key point.
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i am not so sure about china but i will leave that to china experts. the benefits, let me look at the benefits ofthe true free trade globally will be enormous. if we go back to the idea of zero tariffs and zero nontariff barriers and zero subsidies, if china plays by the rules, even the wto rules and all that needs reforming an judgment -- in our judgment, if we do have a willtrading system, we benefit enormously, and frankly, we will benefits, they will benefit, and the rest of the world will benefit. throws off enormous benefits when it is done properly and consistently and in a reciprocal manner.
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that is the key point. possibly a long rainbow and at the end of that rainbow is the pot of gold. you havethat pot, prosperity for the rest of the world but you have got to get through that long rainbow. we are not there yet. we could get there. but we will see how that works. thank you. low oilyou mentioned and gas prices as evidence that the president's economic policy is working. the u.s. becoming the global dominant energy player. but a few days ago, the president said it was necessary to allow the saudi prince to get away with murdering the saudi journalist -- now which one is
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it? >> i will let ambassador bolton handle that question. i am trying so hard to swim in my own lane and i think john will help out the whole discussion. there much to calmly and quietly so i want to get him appear. [laughter] we have known each other for a very long time. you are on, john. >> i am delighted to be here. [laughter] i really do not have much to add. sarah gave you the list of bilaterals just updated a little bit because we are trying to appeal every minute of the president's schedule. she said he is going to meet and the hostt government of argentina, president moon of south korea, president of turkey, the prime minister of japan, and that will transform some point as a
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trilateral meeting between the prime minister of india. and the president will meet with president putin and a working dinner with president xi. >> thank you. plans in the works to meet with the saudi crown prince while he is there? >> no. the bilateral schedule is old to overflowing at this point. those are the ones that i have listed that he will be meeting with. about, i have a question the border tensions right now with the u.s. and mexico. gasu.s. launched tear canisters into mexican soil, and i am wondering if mexico is given the go-ahead before that happened and what is the u.s. doing to mitigate any tensions with the incoming administration ? >> i do not think that is a
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subject of the g20, but i can say that secretary of state will be attending the g20 and therefore will not be accompanying vice president pence to the inauguration on saturday, secretary pompeo will fly overnight. >> we've been watching the daily white house press briefing. heardof the g20, we have from economic adviser larry kudlow and the possibility of advancing talks with china. will have dinner with president xi of china on saturday in argentina. we'll be back with more on the real economy. for those of you watching, bloomberg, more of the white house press briefing. >> regional issues including the middle east. i think it will be a full agenda and a continuation their of the discussion in helsinki. >> what about ukraine? >> thank you.
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heading there on thursday to meet with the new incoming president -- one on trade which is a priority. for the past few years, brazil had a trade surplus -- >> a trade surplus? complaint of that about the brazilian protection, what should we expect related to trade relationships with the new president? should we expect more cooperation or more tariffs like those on aluminum? and another one that is relevant -- what kind of consideration are you expecting with the new government? >> the meeting with the president elect game as a result of president trump's call on
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election night in brazil to congratulate the president-elect. they had a really outstanding phone call. personalg a relationship even remotely, president trump was the president elect. following up on this, we thought it would be useful and certainly helpful to the united states to hear from the president elect what his priorities are, what he is looking for in his relationship from the perspective of the united states. we see this as historic for the united states and brazil to work together and a whole host of areas. economics, security, and a range of others so i am looking for to hearing what the president elect's priorities are
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views are, and hopefully when the president elect is inaugurated on january the first, the two leaders can get off to a running start. i am there to prepare the ground. >> you tweeted earlier about a case involving american families being held in china. had he talked to the president about this case and will he bring this up directly with president xi allowing the families to leave before any trade deals? >> i have discussed the question of american hostages and people wrongfully held and a whole range of subjects. i do not want to get into what his reaction was because i do not think those conversation should be public, but this is a matter of real concern to us, and given the range of issues that president xi and president trump will be covering, it is entirely possible that that would,. >> the meeting with president putin and president trump will
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the president condemn president putin's force in ukraine? the u.n.ador haley and ambassadors of spoke -- spoke for the united states yesterday and we are going to stand on that statement. >> you mentioned the bilateral with the turkish leader and the critical position of backing saudi arabia. srespect the u.s.' relationship, and have you heard the tape and does it include the crown prince of jamal khashoggi 's murder. >> you wanted to remember all of these? >> i will talk to you.

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