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tv   Bloomberg Markets Balance of Power  Bloomberg  March 4, 2019 12:00pm-1:00pm EST

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kevin brief today, cirilli from washington on prospects for a trade deal. we also go to washington for a presidential bid. and more on juan guaido's return to venezuela. can become a good to have you back. explain where we are -- kevin, good to have you back. explain where we are on trade. kevin: the domestic template addedast week has put pressure on the president to deliver some type of deal with the chinese. we are getting reports, including across the terminal, that there could be a possible u.s.-china deal that would lower tariffs on autos and other products. china would buy $18 billion or the products. and i was texting with sources in the business community in washington, who were very relieved the president might
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decide to get rid of tariffs all together, a big win for the business community on that. there would also be ongoing consultation on the review process. bottom line, we're not there yet. market reaction has not moved much on this, because they seem likee to it, but it looks that we are getting closer to some type of deal. david: ok, we will get back to you, but first we want to talk about another person running for president. i have lost track. >> the latest entry into the contest, the former two-term colorado governor john hickenlooper. he just left office two months ago after serving eight years. he is running as a moderate and a centrist, pick whatever word you want, he describes himself as somebody who can bridge the divide that has plagued the country. he argues he is in a unique position to do that, given the
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bipartisan things he was able to do as governor in colorado. he faces a lot of competition, there are a dozen candidates already in the democratic field, and the energy is moving away from the center toward a more progressive direction. this will be one of his biggest challenges, how does he convince voters who say that they want ambitious, far-reaching ideas, more so than pragmatic ideas? david: it has moved away from the east coast to the west coast, now we have, let harris and -- kamala harris and john hickenlooper, a transition for the democratic party. >> it is a demographic isnsition as well, where it more aligned on nonwhite voters, asians as well. that is one of the fastest-growing demographics, especially with several asian-american candidates in the field. there is an ideological aspect, a demographic aspect, so you are
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right, more from the west than we have seen. david: back to new york. our colleague is reporting on venezuela. and we have worded that juan guaido has returned a venezuela. >> that is correct. he recently crossed through customs in a coastal city about one hour outside of caracas. he was greeted by a group of european diplomats, and soon after he left in a chevy tahoe amid a throng of supporters. so, so far he has arrived without incident. the clutch and becomes, what happens once -- the question becomes, what happens once he returns to caracas, where the government has threatened to jail him or worse. david: he got through customs, but on the other hand he has -- by leaving venezuela, i understand there was an order he could not leave the venezuela, so they could arrest him. >> that is the question. the trump administration has
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made it clear where they would draw a red line. should he be touched by nicolas maduro's regime, that could compel the u.s. to take further action against venezuela. the government in venezuela has the understanding and they have to decide how far they will press their threat they made in the past. david: the continued drama of venezuela. now back to kevin. i want to play a little bit of the speech from cpac that bears on the u.s. china dispute. strongnt trump: i want a dollar, but i want a dollar that will be great for our country, not a dollar that is so strong it is prohibitive for us to be dealing with other nations and taking their business. david: you might say that that is monetary policy, but on the other hand we hear the president wants to have a fixing on the yuan. he says you are manipulating in china, but then he is talking on
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the dollar here, can you square those two things? kevin: you cannot and most would have difficulty doing that as well. this is a president that delivered a more than to our oof -- hour off prompter speech at cpac. werequite frankly, there many campaign officials, a couple of whom i spoke with, who were wondering where is this president -- where has this president trump been for the past month. particularly as he has gotten hammered after reports of russian collusion. i personally believe that what you saw on saturday night was truly day one of president trump's reelection efforts. he touched on everything from the economy, to the robert mueller investigation, at one point he had to be bleeped because of cursing. this is a president saying game on. he had a lot to get off of his
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chest. he had a lot to get off of his chest on saturday night after a very difficult week for him as he returned home. david: two things strike me. it was not clear how cpac would receive him. they loved him during this speech over the weekend. you were with him over in vietnam. he beat you back. on the other hand, how much of this was stored up because of michael cohen's testimony? kevin: according to sources i spoke with on sunday, who are aware of how this came together, he had a lot he wanted to say. at the press conference last week in vietnam, he took one question by our colleague at nbc regarding michael cohen, but you really got the feeling he wanted to really just go for force. -- full force. he was out of element in the sense that cable news was carrying wall-to-wall coverage of michael cohen and he was
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caught flat-footed in the fact that he could not get ahead of it. the real action on saturday night was at cpac. david: bear in mind, he really pays attention to nielsen ratings, our president. once again, welcome back from hanoi. now a look at the markets. emma: this morning, we were looking at major averages in the green, the trade optimism had them open higher. but now we are looking at losses across the board for u.s. equities. dow jones, s&p 500 and nasdaq falling between 8/10 and 1%. they need toaying see the details of a trade deal to move higher. the more positive headlines being already baked in. we can see how the day has gone by looking at the s&p 500 intraday chart. you can see it opening above the key resistance level of 2800. on friday it closed above 2800
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for the first time in some time. and actually put in its fifth consecutive weekly gain. over the course of the session, we have seen it fall, and in the last hour we have moved into the red. the s&p 500, every sector in the s&p 500 in the red today, with losses led biotech and health care. other asset classes -- by tech and health care. other asset classes looking bullish on the trade deal. crude oil rising 7/10 of 1%. the dollar it is always the rising as well. off highs earlier in the session. i mentioned health care was the laggard for the s&p 500, within that it is really the insurers when you look at things on a point basis. cigna and anthem falling between 2% and 3.5%. aey were up last week after medicare for all bill was introduced. market watchers are taking that as a signal of further
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uncertainty for these stocks ahead. david: coming up, congress wants to take back some of the president's powers over tariffs. we will speak with james lankford of oklahoma. that is next. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. now first word news. mark: in southeastern alabama, rescuers are searching for victims, combing through homes that have been smashed to their foundations, shredded metal dangling from trees. at least 23 people died when a tornado with winds of one adjusted to miles per hour -- 100ne hegemon for our --
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miles per hour ripped through a community. and john hickenlooper says he can bring people together to produce progressive change that washington has failed to deliver. he will be running for president. opponents say he was too close to the oil and gas industry in the state. and a senior advisor to mock would abbas is accusing president trump of "trying to do anything possible to make it impossible for palestinians to reach a peace agreement with israel." he commented after the united states officially closed its consulate in jerusalem, a move which downgrades the status of the main diplomatic mission to the palestinians by folding it into the u.s. embassy to israel. >> he has already done that for the refugee issue, cutting all funds. the united nations organization
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for the refugees. he has done that by stopping criticism of israeli policy of creating settlements in the middle east. mark: the state department released a statement saying, the decision to close the consulate "does not signal a change of u.s. policy on jerusalem, the west bank or the gaza strip." vladimir putin has suspended russia's compliance with a landmark cold war treaty on nuclear missiles. the move is not a surprise. last month, he said that he would pull out of the agreement in response to a similar step by the u.s. president trump said the u.s. was withdrawing because of years of a violations by the russians, which moscow denies. global news 24 hours a day, on air and @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 so much. president trump has focused on
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tariffs as a tool of trade policy like no other president in recent history, but in pursuing better terms of trade with china is policies have also heard american businesses -- hurt american businesses. chris coons of delaware and james lankford of oklahoma have proposed legislation that would help with imports. senator, thank you for being with us. sen. lankford: glad to be in the conversation. david: what is it you are proposing? >> the tariffs have been ignored. there has been focus on the 232 tariffs dealing with steel, but other tariffs deal with products coming in. a 10% tariff, the president did threaten to go up from there, but in the first two there were smaller amounts and in exclusion process, the way that companies could say that
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this is not manufactured anywhere else and it has to be done here. those processes were put into place and they are working through it, but the third-largest tranche of tariffs coming through these 301's, there is no close in process. there is no way to do an exclusion process. we are simply saying, we have to do a waiver process. we put in place what that process would be and we are saying, you cannot say to american companies that you're getting these $200 billion with of tariffs on your withou -- you without an option out of it. david: there were procedures for exemptions at first, but not for the larger tranche. that,this just apply to or if it became law would it modify section 301 of the trade act for future tariffs? >> it would be for all future tariffs. this create certainty for american manufacturers. people forget that engineering
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is here, intellectual property is here, the companies do their sales and marketing distribution here, battle happens in the u.s. they may be manufacturing in china or india or multiple other places around the world, but the engineering and brainpower, and what is happening with technology is here. we do not want to hurt those companies and punish them for what is happening, or how they are abiding by the rules, in the long-term and short-term. david: that is addressing one aspect of 301, but let's talk about the import side, people importing here fx the consumers here and companies here. but what about the export side? china has taken retaliatory action, so is there anything to be done about that? >> we want to identify this one particular issue. there are a lot of issues, soybeans the clearest of those. the chinese are pushing back on soybeans coming into their
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country. this is a trade issue that needs to be resolved. we want to have good trade going both directions. i am open to having fair and free trade, but creating more tariffs on top of american companies does not help us. and it pushes retell joint tariffs. if we can stop it on this side, we think we can stop them on the other side. david: on the subject of trade, talk about brexit and possible u.s.-u.k. trade agreements. the u.s. could be looking at access for apple culture, which is sensitive -- agriculture, which is sensitive with the u.k., how do you think that will proceed? >> the u.k. is a great ally. what we cannot have is the u.k. and europe forming a brexit deal that locks out every other country in the world, including the united states, from doing a future trade deal. there has been pressure for those in the buddhist parliament to be able to sign a deal that locks them out of a trade negotiation, long-term, with the
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u.s. we want to be able to negotiate on aerospace, defense products, on agriculture, we think we can work through issues like chlorinated chicken and other issues. those are achievable things if we can have a trade agreement. they are a long-standing ally, we have worked together on a lot of issues and we want to work together on a trade agreement. we hope there is not a brexit deal that will lock out the united states. david: you are on the finance committee, which gets you involved in trade. you are also on the appropriations committee. there is an issue pending, a bill that began in the house, not coming over to the senate -- now coming over to the senate, to rescind the emergency declaration. we increasingly see that rand paul, and other senators, apparently siding with the initiative. where are you on that subject? >> there are three areas the
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president has made requests, the forfeiture of the funds, one is for the military, and a construction one. i have not heard pushback on the first two. he clearly has legal authority on the first two. the challenges on the military construction budget, do not do those projects and be able to ship them over. we have yet to see the account numbers on those and what the president is looking for. our hope would be he would focus on the area where he clearly has statutory authority already, use those funds, and avoid court cases, which will surely come and avoid setting a precedent for any future president to use the emergency declaration different way. david: it is your hope, but the president has been steadfast in pursuing what he wants. if he sticks to his guns and wants that extra portion, money
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that would have been for military construction, where will you vote? >> i have not settled that. i'm a strong proponent of border security and i think that this is a national security issue. the best thing we can do is get to the construction. my concern is if he does the long-term peace, changing the military construction, it will lock up in the courts for two or three years, the construction never occurs. so the best thing we can do is focus on the areas where we know he has statutory authority, that is over $4.5 billion just from those, and get busy on the construction and make sure we can get this done. that is the safest route to make sure that we get the fencing built. david: you are on the intelligence committee, as i understand it, talk about while way for a moment. -- talk about uwai, how big a threat are they to the u.s., with respect to5g? >> it is a global threat. if they can have access to
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telecommunications, everything going through your phone, whether it is on a phone call or text, the chinese government would have access to it. we think it is a concern. citizens want to protect their privacy is much as possible. we would also encourage allies to pay attention to that as well. this has become an international issue, not just a national issue. telecommunications is the primary access point to all information. if you think the app on your phone has a lot of information, the carrier for that phone and the person who carries that signal has infinitely more information about every single person. david: senator, think of for your time. james lankford of oklahoma. office depot is our stock in the crosshairs today with a new partner to get into the online business, a chinese partner. that is coming up next. this is bloomberg. ♪
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david: you are watching "balance of power." i'm david westin. office depot is the stock of the hour. shares rising -- office depot is the stock of the hour. alibaba was driving the action. what happened? >> investors like the news of alibaba helping to create a platform for office depot's customers to access suppliers. it was a way to use their products, if you need to get components to the business that he you are in, you could do it -- that you are in, you got access to alibaba. the markets are off by about 1.2% across-the-board. take a lookcaps --
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at the bloomberg. showing function up, you a dashboard of what is going on with a particular stocks. and this is volume, volume is up on office depot today. people are interested in the stock and trading it. and we have seen it reversed completely. david: it is clear what office depot would get out of the deal, they need to be big online. what does alibaba get? is this a foot in the door in the united states? emma: they get access to office depot's 10 million customers who are sort of small to medium businesses, so they could see that as a way to grow their business as a way to access not just regular joe buying something online, but perhaps people who want to buy larger volume goods. so they seem to get a lot out of it. and office depot gets to grow its services business. we learned that in its earnings report last week, where they
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said that services growth was really fueling growth of the whole business. both sides seem to get something out of it, but we will have to see how it works. david: to jump ahead, could this be a backdoor way to compete with amazon for alibaba? emma: i think there is a way for a lot of these companies, they are looking to compete with their biggest competitors, so this would help them. david: next, howard schultz is eyeing a run for president as an independent. the question on the minds of some democrats is why. we speak with bill burton, coming up next. this is bloomberg. ♪ this isn't just any moving day.
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this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. david: this is "balance of power" on bloomberg television. i'm david westin. now first word news. mark: the house judiciary committee is expanding its russia investigation.
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the panel is asking for documents from more than 60 people in the trump administration, family and business. the chairman of the panel says it "is very clear president trump obstructed justice." general matthew whitaker has left the justice department. a spokesperson confirms his last a was saturday. last month when william barr was confirmed as attorney general. matthew whitaker was elevated to acting attorney general after president trump fired then attorney general jeff sessions. venezuela's opposition leader juan guaido has arrived in venezuela to renew his campaign to topple the government of nicolas maduro. he landed at the country's main airport about 25 miles from caracas. he said in a tweet he has passed through integration checks -- immigration checks. many countries have recognized him as the legitimate leader in
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venezuela, arguing that the election of nicolas maduro was invalid. juan guaido has called for demonstrations coinciding with his arrival. south korea is proposing talks with north korea and the united states following the collapse of the summit between president trump and kim jong-un. during a meeting today, the south korean president said preventing nuclear talks between the u.s. and north korea from derailing it a top priority for his country. global news 24 hours a day, on air and @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 so much. he built a major u.s. company and took a global. now howard schultz may be running for president, and that has some republicans rooting for him. >> run, howard, run. david: we welcome now bill
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burton, a former adviser to president barack obama and deputy press secretary in the white house. that was chris christie saying we would love it if howard schultz would run, is he right? bill: i think a lot of people have the politics on this wrong. howard schultz is looking at the question of running for president as an independent because he loves this country, and he is worried about the polarization and the impact it is having on the national conversation. and the inability of washington to get things done. so, i think you have republicans saying one thing, you have far left democrats saying another thing, howard schultz is just trying to listen to the american people. david: that is a reasonable, and principled reason to run, but do you think he has a path to win? is this more about making a statement and trying to change the discussion? bill: that is what this process is about. he is looking at running, and as he goes around and it talks to
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the market people and listens to their concerns and what they have to say about whether or not they want a third choice, that will help to make his decision on whether or not he should do this. he won out get into this race if it is not think there is a path to 270 votes. when he reads about these. purity tests, the lists in the democratic caucus, what is happening between michael cohen and donald trump, it is a mess and he thinks the american people are looking for something not on the far right or left. david: you know the way the constitution works. do you think that he has any path to actually winning outright the electoral college, because if not it will be thrown to the house? bill: that is the question he is trying to answer. i know that there are millions of republicans who are dissatisfied with president trump, but they do not have anywhere to go in this
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presidential election. if the democrats nominate somebody like bernie sanders, who they would never vote for. in a race where you have millions of people without a third choice, that could lead to donald trump being reelected, but it could also lead to a path stateselectoral votes in that are never really competitive. he is going to texas this week. he was in arizona right out of the box. he is going to places that have not been competitive, because he thinks that is where you will find people looking to have a voice and get engaged. david: you mentioned millions of people are disaffected with president trump, but millions seem to be committed to him and we can put up the numbers to show that he has like 40% locked up. you are fighting over a small piece of the pie. bill: i think that number is actually considerably lower than 40%, particularly when you look at a three-way test between a democrat, president trump and a
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centrist independent. i would also say that if you look at the nbc poll that was out this weekend, something like 42% of americans say they want a third choice. that is a plurality of americans, and the highest number it has been a 16 years. i think more and more as people look at what is happening in washington and are broken politics, they are looking for another answer not just the far right or left. david: it is a crowded field. it got even more crowded today as the former governor of colorado announced that he would be running for president. why doesn't the john hickenlooper take up the position that howard schultz would be taking up? bill: i think that you will have a range of democrats who are in this fight, who are anywhere from where bernie sanders is on and healthe and jobs care where he is, and where john hickenlooper is, where joe biden is, you will have a range.
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this conversation is important as howard considers whether he wants to run, because people need to engage with the idea, they need to have a conversation about it and decide whether or not a third party is the right way to go for them. i do not know how the democratic primary is going to end up. it is hard for somebody who is more moderate to win that nomination, specifically when you look at things in the center of the conversation right now, the green new deal, or medicare for all. i think that makes the path difficult for folks in the moderate space, but we will see. david: as you suggest, whether howard schultz buys into medicare for all, what is he for? what is the center of his policy position to say, this is why you should vote for me, not just i am the alternative to people you do not like? bill: over the course of these next two weeks, loving that howard will be doing is laying out what his centrist doctrine
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would be. it would be a hard look at how h e would govern were he president, if he decides to run and if he has the privilege of winning. and he will lay out exactly how he would do it. i do know what to give up news right now, but the idea is you take the best ideas of from the right and from the left, and forge a path that makes sense for the american people. there is agreement in this country on where the mica people are on health care, on guns, on a wide variety of things, but we cannot get anything done because we have been gridlocked in washington and he will lay out how he would take those things on. david: i respect the fact that you do not want his big for howard schultz, but on his policies, can you give us his top three priorities? these are the top the things on -- three things on his to-do list. bill: i would start with health
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care. he gave health care to part-time employees at starbucks, which no other company had done at that time. he knows that there are ways to do this and it doesn't have to be medicare for all. there are ways that companies have already shown leadership on this issue. our'nation's security -- our nation's security is of importance to him, especially cybersecurity when you look all the different threats we have. and third, the education of our young people in this country. h is very concerned about educatione. when he was at starbucks, he helped to get college -- to get college tuition for those employees there. college,ing with k-12, and lifelong learning that is required in our economy right now. that is important to how would it is something you will hear more about in the coming weeks. david: that is a really good answer, without stealing the thunder of howard schultz, and
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it taught me something, which i appreciate. bill burton coming to us from seattle. the u.s. versus north korea, india versus pakistan, the thing wo have in t common is on both sides of the of nuclear weapons. we talk about the quest to address nuclear proliferation. that is coming up next. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. the former center of georgia has devoted much of his career to reducing the threat of nuclear weapons. working to deactivate 7600 warheads under a reduction program. since he left the senate, he has
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been serving as co-chair of the nuclear threat initiative. he joins us from atlanta. we always enjoyed having you on -- enjoy having you want. sam: thank you. david: let's start with what happened in hanoi, from what you understand about it, the president trump do the right thing to walk away from the table? sam: i think he did at the time he did it, because of what had developed, the backing up the first summit was very heavy on symbolism with a couple of things that are also important, the stopping of tests, with missile tests and nuclear tests by north korea. the second summit, if you look at expectations, was certainly a setback. but i am hoping out of the second summit, we will have a breakthrough on, i would call a breakthrough on realism, but both north korea and the united states. that starts with the understanding that these matters
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are extremely technical. those whove to have are below president trump and kim the mandated and empowered to really seriously negotiate. this second summit they were not prepared in terms of having later the groundwork, there was -- laid the groundwork, there was no real agreement and both sides were betting on a hail mary pass. it is not all bad news, i think there is hope for a realistic approach by both countries, which means no hail marys, but three yards in a cloud of dust and progress on what i think has to be a broader subject than denuclearization. it has to be demilitarization over time. david: give us the benefit of your experience, which is vast, particularly involving soviet weapons, which got decommissioned. you said three yards in a cloud
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of dust, what would those look like, specifically? what would you look to see happen? sam: the most important thing is stopping the production of weapons grade, those weapons with nuclear material. that means plutonium and uranium. as long as north korea is turning this stuff out, the dangers continue to grow, even though they may not weaponize that material. i'm always worried about the sale of that kind of material from the north koreans to some group that does not have a return address so stopping the material would be number one. two, some sort of declaration about how much they have produced, so we know what the baseline is as we try to work with the north koreans to reduce the dangers in terms of that material. third, getting people on the ground, starting hopefully with plan a, the international atomic agency with experts to get on
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the ground and understand what is going on, and working with the north korean side, their technicians who put together the weapons, those are the people who would have to take them apart. that would have to be done cooperatively. the u.s. could come in with a team. being on the ground is important in both getting the job done safely with the north koreans, as well as verification. david: senator, president trump has spoken about complete denuclearization. is that realistic? let me play something family often at a -- from somebody you know well. this is what he had to say. take a listen. >> we made it clear that even though they may ultimately retain some of the nuclear weapons, that they are going to have to join all of the civilized nations in providing limitations on the nuclear capability. david: we do not want to
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negotiate with ourselves, but realistically, is that what we should expect, that they could keep nuclear weapons but we limit the possibility of exporting them, developing more of what they do with them? sam: i would keep the goal denuclearization, but it has to be step-by-step, have a verification, that has to come first. most importantly, the south koreans and north koreans have started on a new course, that could be the most encouraging thing of all. south korea and north korea, as they begin to cooperate economically and otherwise, denuclearization of the peninsula becomes more feasible. it will not be the first step, it may be the last step, but it should be our goal and i think that the north koreans have said that is their goal, and we should hold them to it. we need to have a definition, we need to take other steps first, but i would continue that as a goal. david: turning to a different
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conflict, this between india and pakistan, both of whom have nuclear weapons. that seems to have come down a little bit in temperature, but nevertheless, continued conflict in kashmir. has the world given up on denuclearization in india and pakistan? sam: it is not in the near term realm of forecast or probability. but they have taken additional steps in the last couple years that makes the situation even more dangerous than it was. number one, india is frustrated by pakistan's alleges support of terrorism -- alleged support of terrorism in kashmir and other places. india is frustrated because it takes them a long time to mobilize their forces. and in the meantime the world puts pressure on saying india did not retaliate, because pakistan has nuclear weapons. india, in response to the frustration, has now a cold
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start concept in terms of globalization. and pakistan a response has gone for short range weapons, which have to be positioned near the front line, because of the range. they may have delegated military commanders some authority. india, thennse from weapons with pakistan near the front line, the say the least this is a dangerous development, particularly with the historical contentions. there has got to be dialogue. they have to move away from these postures, not just from the immediate crisis, but to prevent a blender in the future. taht kind of dialogue is all important, and perhaps this may be a bridge too far given the relationship, but it is a really good area for the united states to propose that russia and china join in sponsoring talks between india and pakistan. the parties may not want that,
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but if the three countries that are most involved in this relationship between india and pakistan, were to get together and a sponsor that dialogue, that could have extra meaning. nevertheless, pakistan and india must have dialogue. countries of those have to understand that they are moving toward a very dangerous cliff where you could have a war nobody wanted, and it could go nuclear very quickly. david: it is a difficult time for the u.s. to reach out to russia on subjects such as this. we basically backed off of the intermediate nuclear -- the nuclear -- test, the nuclear missile treaty that we had, and as of today mr. putin has said he will back off as well. we are not making much progress when it comes to russian denuclearization. sam: that is exactly right. trust has eroded.
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we have tensions with russia, including the election interference in this country, but we still have existential common interests. 90% of the nuclear weapons, 90% of the nuclear materials are possessed by the u.s. and russia and they have a mutual interest and we have a mutually just. we have got to work -- interest. we have got to work together in these areas if we want to avoid catastrophe for the world. india and pakistan is one example, north korea is another example where we have to work with russia and china, and with japan and south korea. we are in a -- i have said this several times, but it gets more active as we go along -- we are in a race with cooperation and catastrophe, in cyber and in nuclear. and the major powers have to start cooperating or we are really jeopardizing the security and future of our citizens, and indeed god's creation. david: leave us with a green
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shoot, if you can find it. do you see any major power signaling they may be willing to move in that direction? sam: the good news is south korea and north korea are having the dialogue. that is happening on that front. in terms of the nuclear front, there is not much encouraging news now. counseling the imf, russia has now said that they will cancel it, the u.s. has already announced that. we have six months to decide whether that will really happen, start isd that the important. if i was searching for a sewer lining, and it is hard to find, i would say that president trump and president putin, when they had their conference they got overwhelmed by other news, but they agreed on strategic talks. and those talks should take place. we cannot afford to wait for new
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leadership in russia and the united states, we cannot wait after the robert mueller investigation, after it has concluded and wrapped up, we have to begin the dialogue. and congress has to really step in, because we all know that the trump administration is imperiled on matters concerning russia. the leadership with congress has the war and peace responsibility from the constitution and they must recognize the dangers territory we are getting in and move forward with bipartisan work, starting with coordinating with the executive branch, and then eventually moving toward a much more dialogue with russia, not simply with putin. david: senator, thank you very much for your time. that is sam nunn. this is bloomberg. ♪
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david: this is "balance of
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power" on bloomberg television. i'm david westin. markets are having a rough day, the worst in more than a month. emma breaks it down. emma: we spoke earlier about how equities have reversed their move higher, now they have since fallen back, clearly looking for more detail on the trade deal. and the dow jones down 1.3%. all the majors falling. small caps are down into the russell 2000 is down. that is down 1.45%, falling the most since january 22. and tech and health care are the main laggards, certainly on the s&p 500. i want to take a look at the dow a little more closely, take a look at this chart for you. dow, the biggest loser of the majors. weeks,lowest in three falling the most in two months, about to have it second worst day. if it falls off more, worst
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day since january. the biggest losers when it comes to the dow, it is not just the trade talks that are the catalyst, you have boeing and mcdonald's and united health down. mcdonald's falling over uncertainty. united health is down nearly 4%. that is insurance and health care, another major topic for the u.s. in the house and i suppose in the senate. mcdonald's falling after a downgrade. david: we will see how it develops. coming up, a former ceo joining bloomberg markets talk about legal issues surrounding blockchain technology. live from new york, this is bloomberg. ♪
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mark: i'm mark crumpton will bloomberg first word news. the united states could end of lifting most or all tariffs as part of a tree do with china. the two sides are close to
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reaching an agreement. trump administration still needs china to follow through on a couple key promises. one is to increase the amount of american goods advise. another is to better protect intellectual property rights. the trump administration prior to tighten the six decade trade embargo on cuba. officials say the u.s. will allow some lawsuits to go forward that accuse foreign companies of using properties confiscated by the cuban government after the 1959 revolution. that could make investment in cuba more burdensome for companies thinking of entering the market. a key train service between india and pakistan reopened today and another possible sign of easing tensions between the two nuclear armed neighbors since a major escalation last week over the disputed kashmir region. the train operation left -- four indiadia

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