tv Bloomberg Markets Balance of Power Bloomberg February 19, 2019 12:00pm-1:00pm EST
david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, shawn entree negotiations in washington -- on trade negotiations in washington. and from london, jeff on the last-minute efforts to get a deal on brexit. we will start in washington with shawn. as i understand we would do the same we did in beijing, starting at a lower level and moving up the chain? shawn: he would go again, another round of china talks. we are already hearing talk of them going back to beijing next week for more talks, if these talks go well. we will see a couple days of talks between lower-level officials, then the real top economic emissary will arrive in town and start work on thursday. david: hold on, we will talk about some auto tariffs in europe, but for now we will go to washington to our colleague,
bernie sanders making it official that he will run for president. how does that change the race? >> a big move that shakes up the race. he is one of five senators on the democratic side, who has announced his presidential bid. he was the runner up in 2016. he has built a loyal following, a cultlike following of progressives and millennials, that will be hard to reckon with. one concern that some watchers have is that he will siphon votes from elizabeth warren. they have a similar populist critique and a message that they could potentially split the vote, but it is a wide-open field and in a field this big it is possible with the candidate with a loyal base of support could win the nomination. he will be a force to be reckoned with, but he will not be the scrappy underdog this time. david: he could siphon from her, but she could him as well. she is planning on taxi in the
wealth, basically with the universal pre-k support. sahil: universal childcare program that would cost about $70 billion, according to an economist who looked at this. he will pay for it with the annual tax on wealth, about $50 million per year. this is part of elizabeth warren's program of using the government to try to mitigate income inequality and expand the social and economic safety net, the kind of thing that is popular with a certain type of voter. david: now over to london to hear from jess on brexit. we keep hearing that theresa may is scurrying around to get a deal, how will she get a deal? jess: tomorrow she is going to brussels to meet with john paul juncker. and they will have high-level talks about her latest efforts to speak to all of the different eu leaders.
she has spoken to 25 of the 27 in the last week or so. and she is trying to convince them to reopen the withdrawal agreement, the divorce deal that they agreed on back in november, to try to get some legal changes to this backstop. at the same time, we have her attorney general and her brexit secretary in brussels this week as well, talking on a more technical level to officials about the changes that they could possibly make. and a proposal of they could put forth, which if they managed to agree on, could bit put -- could be put to parliament next week. and if they do agree it on it -- agree on it, that could allow theresa may to get her hand through. david: the whole issue on the backstop is making sure there is not a border with northern ireland. we are five weeks away for the deadline now, if they crash out without an agreement, a border has to go up, doesn't it?
nobody will benefit from that. jess: there is the sense that theresa may is trying to run down the clock and the closer we get to the deadline day, the more pressure there is on lawmakers to make a decision and to back her deal. the risks of no deal are so great. but next week we will see other lawmakers who want to put ford an amendment in the house of commons which will rest control of the whole process and put parliament in control, allow them to try to stop the no deal from happening. at the moment everything is the play for. david: thank you for reporting. now back to washington. we talked about the china negotiations. what about europe? reportedly, the president has, we are finding out from the department of commerce, some possible auto tariffs. when do we expect to hear more on that? shawn: the president formally received a report from the commerce department, which lays
out the case for potential tariffs on imported cars, that would be in the name of national security, the same way that the steel and aluminum tariffs were. he now has 90 days to make a decision. we do not expect to hear imminently on that. part of the reason for that is he wants to use this as a way to pressure the eu into making concessions on trade. but the conversation with the eu on trade is only just getting started. the european commission does not even formally have the mandate to launch in these negotiations. and it may not get that mandate until april, potentially. then you have european elections in may. it gets complicated politically in europe over the summer. in october, the current european commission will see its mandate expire. so complicated talks ahead with a complicated calendar is potentially more tariffs on the horizon. it is not just europe in the firing line, also japan, the
third-largest economy in the world, also supposedly engaged in negotiations with the trump administration. again, those of you to get started. and the japanese have said they will also walk away from talks if these auto tariffs go into place. david: but we did hear from the german chancellor overnight, pretty agitated i would say, about the possibility of tariffs on autos. listen to what she had to say. >> look, we are proud of our cars. and these cars are built in the usa. south carolina is one of the biggest bmw factories. not in bavaria, in south carolina, and they delivered to china. these cars are no less threatening than if they were built in bavaria. because of the national security, that startles us. david: something she has a
point. maybe they should cut back on the president's authority. he he overplayed his hand if moves forward on national security concerns for the tariffs? shawn: capitol hill has been arguing that the president overstepped his authority with steel and aluminum tariffs on canada and mexico, two allies as you know, and initially the administration said the tariffs were to get them to the table for a renegotiation of nafta. that has happened, the tariffs are still in place, so that has left a of grumpy people on capitol hill. but now we are focused on auto tariffs and we look at those as potentially another redline. again, we have not seen a lot of action from, especially the republican-controlled senate, when it comes to restraining the president on trade. so we are hearing talk of that on capitol hill, completely unclear whether they will follow through on that threat. one point on the auto tariffs, this is, in terms of global
trade, a bigger deal than the u.s.-china talks. wto,rding to the t bilateral trade is only a certain amount, and auto is much larger. david: now a check of the markets. a legu.s. equities taking higher. looking at all the major averages in the green. 500 werend s&p swinging between gains in the losses this morning as the market look for some direction. and also trading today, volumes about 50% less than -- 15% less than normal. but we are in the green. and we are looking at consumer staples it consumer discretionary sector is a leading the s&p 500 with investors perhaps liking their earnings report from walmart. more on that later. and other asset classes.
gold today is trading at its highest level in 10 months, up almost 9/10 of a percent. speaking about the asset classes, changing the board to take a look at the pound. you were discussing the latest from brexit and looking at the pound, it is rising today, up 8/10 of 1%, and it is heading for its third day of gains. and reports from traders that investors are seeming more optimistic, hoping for something concrete out of the meeting tomorrow from prime minister theresa may and jean-claude juncker in brussels. and looking at movers today. i imagine walmart coming out with a stellar earnings report, the best fourth-quarter earnings in more than a decade. rising close to 4% today. and good e-commerce sales growth. centurylink rising 4% today. lastly come it dropped 16% -- 16%, butek, it dropped
rising today after it is said it is pushing for changes at the company, including adding directors to the board. it also received an upgrade. and another company with an upgrade, this is rising 6.7%. as got in upgrade from citi the team there becomes more bullish on copper. and earnings from walmart today, this is marking the beginning of the end for the earnings season, although we have a number of companies still to report. last week, we heard from mike wilson who said that the s&p 500's profits would turn negative for the first six months of the year, that we could be going toward in earnings recession. this week we heard from buying belsky -- from brian belsky who says that was overblown. david: if at first you do not succeed, senator bernie sanders has announced he will have another run at the presidency after a strong showing last
david: this is "balance of power." i'm david westin. now first word news. mark: the house oversight committee has more questions about white house efforts to rush of the transfer of sensitive nuclear technology to saudi arabia. new documents are adding to earlier concerns about potentially unlawful nuclear talks with the kingdom. a report released today says that michael flynn, and other white house aides, could have had conflicts of interest as they pushed for a deeper nuclear ties. students and faculty at the
massachusetts institute of technology are unhappy about a new computer center named after stephen schwarzman. they want the school to cancel the celebration of the center. the ceo of blackstone group donated $350 million to m.i.t. protesters are criticizing him for his work as advisor to president trump and his hosting of the saudi crown prince. and trade talks between the u.s. and china resumed today, this time in washington. the president described the negotiations last week in beijing as a very productive. bloomberg has learned that there are still key differences between the two sides. the u.s. is threatening to boost tariffs on chinese goods if there is no deal by march 1, but the president has said he is open to pushing back the deadline. time is running out for the but is prime minister to get parliament to support her brexit plan. negotiators from the u.k. and the european union are working on a new legal text for the most
contentious part of the deal, the backstop plan for avoiding a hard border between the u.k. and ireland. ides believe she has until for very 27 to get a better deal, before lawmakers a vote to take control of the process. global news 24 hours a day, on air and at "tictoc" on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. david? david: thank you, mark. sanders ran from the left against the favored hillary clinton in 2016, and a surprise to many with how strong the challenger -- the challenge is what he made. and he will be running again. >> i think that the current argument in the white house is an embarrassment to our country. i think he is a pathological liar every day. and it gives me no pleasure to
say that, but i also think he is a racist, a sexist, a homophobe, a xenophobe, somebody who is gaining cheap political points by trying to pick on minorities, often undocumented immigrants. david: welcome somebody who advised him in his last campaign and is now the senior advisor for the 2020 campaign, chuck coming to us from washington. thank you for joining us. i want to refresh our recollection by how well bernie sanders did last time. we have a map that shows that he won the primary in 22 states. what did you learn from the last race that you can apply to this race to do even better? chuck: i have been doing this for 29 years and i have never seen a campaign like we had in 2016, and it has to do with the people he motivated, that will be the true difference between this campaign and any going forward. we want to build on that
momentum, but there is a real growth there in activism, part of it spurned by people who do not like donald trump, and part of it is the legacy of bernie sanders and the message he has been talking about for years, the vision he had three years ago was supposed to have been a fringe idea, outside of the norm when we talked about medicare for all, a livable wage, free college for public universities. now it is mainstream, so we want to build off of those 22 states to actually bring a narrative to this democratic presidential primary that gives us a great shot to win. david: the fact that the country , where the discussion within the democratic party, has moved toward bernie sanders is a strength, but possibly a weakness because other people will be appealing to the same people, people such as elizabeth warren, but not limited to elizabeth warren -- does that make it more difficult? chuck: getting time you run for president, you need a three major things.
one is name i.d. we spent to it a million dollars in the last election building that and we do not have to do that again. you need an organization, an organization on the ground and bernie sanders left that itanization in place and continues to be there. third communing a lot of money, and you need to be able -- third, you need a lot of money, and you need to be but a raise a lot of money. any candidate who has all three of those, has a good shot, and bernie sanders is the only one who has all three right now. david: how will bernie sanders appeal to the traditional democratic parts of the voters, not exactly minorities, but latinos, and also african-americans. there was a perception he did not reach out as much as he could have last time to african-americans? chuck: there are two parallel things going on. we won almost every state,
people of color under the age of 40, most states under the age of 30, so we did well with the more progressive people who are believers in the message that bernie sanders had. this time, the field will be split, not only us and hillary, but it will be split up to 20 people, so when you split of that electorate, we do not have to win everybody in a particular state, we just have to have our message heard to win a portion of that state. we plan on investing with people of color, with latinos in every state. that,l not walk away from we will put our message out there and hope we get a percentage of that group to support us. david: does he have a woman problem? behavior, reports of by some people on the campaign was not admirable in bernie sanders himself said he could've done better? chuck: we could have done better and we will do better. we will empower women in this campaign, we will empower women of color in this campaign.
we want to make sure our campaign is reflective of the entire universe of the democratic primary base and all of america. we want to empower immigrants, and we especially want to empower women and make sure they are a big part of the campaign. because that narrative is false, and this will be a different campaign. david: how does he differentiate himself from a elizabeth warren? elizabeth warren has come out with a plan to tax wealth that would generate a lot of money, which she said she would use for child care. is that a counterbalance to what bernie sanders has talked about with paying for college education? chuck: senator elizabeth warren is a friend of bernie sanders. she will be our friend. so what we need to think about is what are the nuances between the programs and let the voters decide. we will run on the platform we have been running on for years, and elizabeth warren will run on her platform. we want the voters to decide. david: thank you very much, chuck rocha, a senior advisor to
the bernie sanders 2020 campaign. and now we have breaking news. the u.s. has said to be pressing for stable yuan. it is something that the president has pushed hard on in the past, currency manipulation, but it has gone off the radar screen. but where told now as they are getting into the brass tacks in washington that the u.s. is asking to have an agreement that the chinese would not devalue their currency as a way to counteract u.s. tariffs. you can see the u.s. dollar is down now against the chinese remedy. renminbi. this is bloomberg. ♪
colleague from washington. this is pretty big news. i must say that back in the day and heard the president talk about currency manipulation, but i have not heard it recently in connection to the trade talks. shawn: if you remember to the campaign, that was one of his big themes on the stump. since then, has not been able or has held back from labeling china as a currency manipulator. this is really all about something the administration got very angry about last year, which was as they were imposing tariffs they thought the chinese were responding by weakening the yuan, and therefore counteracting any move to increase tariffs. they want to make sure that will not happen if they get a deal in the future. this is something the u.s. has also been pursuing for a long time and it would be a big deal, if the president is able to get a commitment from the chinese. david: a bit ironic. we take a look at the u.s. dollar against the yuan, the
dollar is weakening against it, the yuan strengthening is what is going on. the volatility, the u.s. dollar and yuan volatility is close to a near-a decade. it is on the terminal. it is really bouncing the currency at around. -- currency around. do these types of agreements work? kevin: we have not -- shawn: we've not seen anything like this that has locked down currency manipulation. they go back to the obama administration, when they were negotiating the transpacific partnership, negotiating with the chinese -- or the japanese to not do any competitive devaluations and that they are pushed similar things with the south koreans. we will see whether these things work. there has been a long-standing view in washington that this is something that the imf should be looking after, something for the markets to decide. this is another sign of how the
president likes to do things differently. david: and differently, a way to look at currency manipulation. shawn: i think a lot of this is also about domestic politics. president trump is going to have a big test when he gets a deal, if he gets a deal, that is getting it signed off on by congress, even though they are not going to have a vote on it. chuck schumer has been a long-standing china currency hawk. david: many thanks to shawn. up next, the president talked on friday about his upcoming summit with kim jong-un, but is he ready. we will talk with an expert, scott snyder. that is next. this is bloomberg. ♪
whether to revoke his bail after he posted a photo on instagram of the judge with what appeared to be crosshairs of a gun. stone and his attorneys filed a notice apologizing for the post, but they say the photo was randomly taken from the internet and was not intended to threaten the judge. and president trump calling on the military in venezuela to drop support for nicolas maduro, warning top officers of the u.s. knows where they have stashed billions that they have stolen. the speech was an attack on socialism, and it may be a preview of the 2020 campaign. republicans have described proposals on health care and climate change as socialist. bernie sanders is running for president again. the independent senator from vermont announced his second bid for the nomination. he called president trump, "an embarrassment and pathological liar." is 77.
in 2016, he upended the establishment by making a stronger than expected challenge to hillary clinton during the primaries. the chinese telecom equipment maker while way -- huawei says there is no way the u.s. can crush the company. the founder said "the world cannot leave us because we are more advanced." the trump administration has been pushing other countries to avoid using their equipment, and argues that the gear could be used to share intelligence with beijing. the company has denied that. global news 24 hours a day, on air and at "tictoc" on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. davdavid? david: thank you, mark. u.s. and china trade negotiations resumed today with reports just out a few minutes ago that the u.s. is pressing for china to agree to stabilize its currency against the dollar. the trade talks form a backdrop
for the upcoming u.s.-north korea summit. we welcome from washington, scott snyder, a senior fellow for korea at the council on foreign relations. give us a sense of how this interplay's, the u.s. position, the chinese position, how did the interplay with these trade talks? scott: i think there are separate negotiations going on with two different teams. and the north korea one is coming first. and really the issue is the question of whether or not, at the level of xi and donald trump, there would be a linkage between the two. went tor, xi jinping florida and thought he had gotten an understanding from donald trump that there would not be a linkage. now he is in a trade war. so the negotiations will go forward to try to address that. and the north korea issue should be compartmentalized from the
u.s.-china trade talks. david: yet the president has indicated it he thinks he has leverage with china to help with north korea, he has certainly talked about china helping with north korea, so has that worked out? scott: it is interesting that president trump has gotten more from china than the obama administration got in terms of putting pressure on north korea. now, the challenge is he needs china to continue to pressure north korea, while he engages in talks with kim jong-un. and the weird aspect of that is that china worries about north korea in terms of potentially geopolitical, kind of switching over to -- they do not want to see the u.s. and north korea develop too good of a relationship. hasd: so kim jong-un traveled to beijing and has major he has his lines close with president x i, are we doing
as good a job with our closest allies in the region? scott: no. president trump and a south korea's president had a conversation in advance of the summit this morning. n shouldew, abe and moo have face-to-face meetings with donald trump before he goes to the summit. and there are problems between japan and south korea, right at the moment when we need them to be aligned in support of the negotiations. david: explain how complicated it is. i understand part of the problem is the demand from an official in south korea that they apologize, japan should apologize, causing deep defense in japan. scott: there are so many layers right now. i think the core issue is about a south korean supreme court judgment that is holding a japanese company liable to pay
korean workers, who had worked for the firm's predecessor, back during world war ii, and the japanese insistence that those issues were settled in 1965 when japan and south korea normalized of their political relationship. david: is this something that the president could make progress on, or is it above president trump's paygrade? would another president have gotten together with the south korean president and abe and said, let's work this out? scott: it is in the u.s.'s interest to have them on the same page. historically, the u.s. has been a player that has brought south korea and japan together, yet this administration has really had a vacuum in policy, in part because the assistant secretary for the pacific is not confirmed, so there is nobody really empowered to support donald trump effectively to do this, and the administration is
not doing anything in that area. david: is the u.s. ready for this summit, the second summit with kim jong-un? scott: we are a week away. there is a good team, but i worry about how well president trump is working with his team. and the other issue is the president has set too low a bar by saying he would be happy just with nuclear and missile testing restraint from north korea. we really need to see more coming out of this meeting, including an actual process where we are addressing denuclearization along with peace. david: you suggest that the president has put emphasis on the fact they have not been testing missiles, and we have to admit there was a time where every week or so they were testing the missiles, so why is that not a major accomplishment in itself? scott: it is an accomplishment, but it is part of what we want and need, because the threat remains, they still have the
capability to reach the u.s. with a nuclear missile, potentially. and so we want to see that capability dismantled. and the purpose of the talks relation to be to step forward on denuclearization. so we need to see a process, accompanied by evidence of serious of purpose by north korea to achieve denuclearization as a next step. it is important that north korea is in the game, but we have a long game to play and in the end we want to see the u.s. win the game by achieving denuclearization in north korea. david: thank you for joining us. scott snyder from the council on foreign relations. president trump gets his first primary challenger, we speak with the libertarian vice presidential candidate about why ands jumping into the race back into the republican party. that is coming up next. this is bloomberg. ♪
david: you are watching "balance of power." i'm david westin. bill weld was elected twice to be the governor of massachusetts, and he is back to ask for a different office, that of president of the u.s. welcome now governor w to bloombergel -- weld to bloomberg. the most import question why -- quite a, why? -- question, why? gov. weld: i do not think the guy doing the job right now is leaning to do it. there is a lot of picking fights with people into being divisive. in the way i have been apprenticing for this job for a long time. i spent a long time in the justice department, worked in the house and the senate, had
two terms as governor, where i had experience working across the aisle. i have a lot of international experience, mostly in the business world, but a third of my duties when i was the assistant attorney general was international as well. i have gone all around the world all the time. i am a member of a group of former world leaders call the interaction council, we talk about the great issues of the day. i have perspective on international matters. so i think i could start on monday. [laughter] david: there is somebody who has the job right now. and it has been a long time since there has been a primary challenger, particularly a republican. so why do you think you can displace a sitting republican president? gov. weld: in some places like new hampshire it is one of voter at a time, they like to meet the candidates. it would require a certain amount of change, but as -- with
how people in the republican electorate see things right now, that is for sure given the president's numbers, but there are 20 primaries were unenrolled or independent voters can vote in the republican primary, so that is an opening. beyond that, you have to make the case for yourself and i am in this to win, and i am not apologetic about that. it would be ludicrous to run any way other than to win. and i can see what i would do if i get in there, i know what i would do the first day -- cut spending. the president has not vetoed any of the overspending going on, not a penny of it. when i was in massachusetts i did do that and i was rated the most fiscally conservative governor in the united states by the wall street journal and the cato institute. hwen iran for governor -- and when i ran for governor there had not been a republican in massachusetts for many years,
and i got to terms. and after me there were four republican governors. do not let into but he tell me i have not done anything further ripple can party. david: people outside of washington talk about the deficit and our debt as but being a real problem, but once they get to washington they tend not to do anything. but people like to get reelected. nobody gets reelected on that basis. how can you bring congress along? gov. weld: we should have a balanced budget amendment for the president -- david: that take the congress and the president. gov. weld: you could veto stuff, send it back to me without the overspending or i am not signing it. david: the president of the u.s., he does not have the highest approval rating overall in the country, but among republicans it is extraordinary, like 89%. so how do you account for that? you will have to eat into that. gov. weld: i think he made an
emotional bond with a lot of people who felt they were left behind by globalization, they felt downtrodden, so that creates a strong bond. i think that is responsible for his popularity with the base. however, that there is a bigger problem coming down the road, and that is what if i percent of all the jobs in the united states are about to disappear because of technical developments in artificial intelligence, robotics and drones and machine learning and autonomous vehicles. so, you know, the highest number of people in an occupation in most states is driver, truck drivers included, but those jobs will be absolutely gone when autonomous vehicles come in and summary has been think ahead about that. i do not think the president is. the people who do not want to be left behind should care about that a lot. and the skills that will be
required for the replacement jobs, and there will be replacement jobs, mostly of a technical nature, they require some post secondary education to fit people to get those jobs. the good news is when they get them they will have higher wages. but to get those of skill sets, we have to make it possible for people to have that educational opportunity. i talk about in terms of a g.i. bill for displaced workers, who are about to be replaced by technological developments. it will involve the state governments, that is where the colleges are, but there has to be federal leadership. david: so, why are you running as a republican? the republican has come out with a strong statement, it does not seem you are getting much support from them? gov. weld: they are relying on the president. david: are you getting encouragement from other republicans? gov. weld: i am not asking people to endorse or get behind
me until i have shown i have some traction, in terms of officeholders. i'm getting a lot of, a lot of email encouragement, sure. when i need people to speak, as i did a couple days ago, i get words like historic, so yes. david: when you ran as the vice presidential candidate, you said i am a libertarian, are you still a libertarian? gov. weld: that is the truth, that is a true fact. i did say that and i have self identified as a libertarian my whole life, since i discovered the constitution of liberty in law school. nothing has changed in terms of how i see the world. i ran on a small platform with gary johnson on the libertarian ticket last cycle, i thoroughly enjoyed it. and i think the things we said in that campaign were true. we said the two parties are
locked in a death spiral embrace and all they care about is getting reelected, that is probably true now. the fact they want to cast themselves as george iii, to the benefit of anybody who does not know, was the king of england during the time of our revolution. it was jefferson who said a little revolution every once in a while is good. david: i will cast you in this as a moderate. not in extreme on the left or right. in recent elections, it feels like it has gotten more off-center, going to the left or the right. and people despair really of somebody successfully running down the center. what makes you think there is room for you or something else to be a moderate, i will not appeal to the extremes? gov. weld: i never call myself a moderate. and really quite welcoming tolerant and open socially. i said at the republican
said iion, in 1992, i want the government out of your pocketbook and out of your bedroom. that remains my view. david: ok. thank you so much. coming up, it quickly became one of president trump's favorite applause lines and now it is one step closer to becoming a reality. we will get an update on the space force. that is next. this is bloomberg. ♪
the value of their currency stable as part of trade negotiations. this is aimed at neutralizing any effort to devalue the currency as a way to counter terrorist. that is why we are -- tariffs. that is why we are seeing this move. if we look at the past five years, you can see we have had a volatile time of it. switching up the board again, look at the chart we have for you, you can see the volatility is at the highest in some 10 years. so that is all on the news. we looked for other market reaction. looking at other currency pairs, a big move in aussie dollar on the back of this move. a little bit of a move for the swiss franc. w are keeping an eye on other developmentse and any other news we might get in relation to the headline we saw that the u.s. is asking china to keep the value of the yuan stable as part of any trade deal. the negotiations are still ongoing. david: thank you.
president trump has told us that he wants it and it became a favorite applause line during his campaign push. >> the pentagon is working to create the sixth branch of the american armed forces, it is called the space force. >> i am not just talking about sending rockets to mars. that is where it is that militarily. >> the space force, so important. that is where it is that. all about space. very soon it will be all about space. >> it sounds a little bit out there, but it is -- well, it is out there. david: today he is doing something about it, signing an order that could lead to the creation of the space force as a separate bank of the military -- branch of the air force -- branch of the military. we welcome a defense analyst,
robert. dallas why we need this? -- tell us, why do we need this? robert: the driving motivation is many people think that the threats are growing in space. and it is somewhat of a different mission from the other services, even from the air force, and we need a dedicated service to really focus on the growing challenges that the nation faces in space, that is the rationale given. david: we have had wilbur ross say we need to move forward and privatize space and make commercial use out of it, so this is different. are we declaring an arms race in space? rob: i think that is what some people are afraid of, although there has been a lot of military activity in space for a very long time, so i do not know calling it in arms race is quite accurate. attentionis increased from our part and that will likely prompt increased
attention from the chinese and the russians, to pay attention to what we are doing and perhaps step up their efforts as well. david: i wonder whether we are doing too much, the question has been raised, why do we need to do more. i sat down with the secretary of the air force and this is how she explained the space force and how it makes sense. >> the problem we are trying to address is how do we continue to dominate in space, because every mission in the military is dependent on it, and so is the timing signal for the new york stock exchange and the blue dot on your phone. it enables the economy and we must remain dominant. david: is that achievable, to dominate in space? rob i do not know about the dominating:, but we can protect our critical assets in space and if necessary, in times of conflict, hold at risk another
nation's assets. we are very dependent on the gps signal and so many other things, communications and intelligence, they depend on space-based assets and we want to be able to defend them. money does this mean more for this program or is it shifting money around? rob: in the very beginning, this is why it could get through congress, is it is about mostly shifting the money around. eventually, you may see some new money, but for the time being it is about reorganizing things and spending money with a sort of different people in charge of that we already have. david: you know this area so well, teach me about this -- my impression is there is a lot of to tell her already -- totalitarity -- is the air force going to say, we do not want a separate branch? opposed the idea when it was put forward in 2018,
then it got expanded to a separate service and now it is backing off to a space corps, similar to the marine corps. the air force still has trepidation about their turf being taken away. david: we appreciate your time with this. caesars and news, carl icahn and talks. we have a shareholder expressing interest in caesars and asking for seats on the board. the stock is up over 4% on the news. and sign up for the newsletter, bloombergand sign up for the ne, bloomberg
counterintelligence investigation into president trump. he made the comments to nbc today. he said he briefed a group of lawmakers including senate majority leader mitch mcconnell in may of 2017 right after the president fired fbi director james comey. honda plant to close its factory in swindon in western england in 2021. a fresh vote in the british -- >> that is devastating news for those workers and families and for the local economy. mark: the honda president and ceo told a news conference in tokyo the decision was not related to brexit but was based on what made most sense for its global competitiveness in light of the need to accelerate its production of electric vehicles.