tv Bloomberg Markets Balance of Power Bloomberg March 6, 2019 12:00pm-1:00pm EST
where the world of politics meets the world of business. on the brief today, we begin on trade. with the u.s. deficit numbers at a few hours ago, $60 billion for the month of december and on pace for the rest results in 10 years. welcome now shawn from our washington bureau. welcome. these were unexpectedly high. they were even higher than expected. shawn: i think we had a prediction that the trade deficit would top $600 billion a that,we are on track for but at $621 billion for the year, that is higher than expected. of it also reinforces one the quandaries facing president trump, who has promised to reduce the trade deficit and so far in his first two years it has grown by $120 billion. david: it was both sides, exports down and imports up, do we have a sense of whether it is
apples to apples, if people were worried about tariffs they would import more quickly. shawn: the numbers last year were distorted by the broader picture, the big fiscal stimulus we saw as a result of the tax cuts that juiced the economy and therefore the strength in the dollar as well, the aggregate additional demand for imports naturally. the second point is the impact of the trade war. and the tariffs on china caused this kind of rush to get ahead of them that we saw through much of the year, and if you remember back to the tail end of last year there was a threat that a big chunk of the tariffs would rise to 25% on january 1, which caused traffic through the west coast ports. and at the same time we saw chinese retaliation hit the u.s. exports to china really hard. so the trade deficit in goods with china last year actually
reached almost $420 billion, that is a record. david: you have studied these things around the world and it strikes me that there are a couple factors that could of cap things down. we have a stronger dollar. and another one is we are no longer importing on the oil we once did, does this indicate something about the competitiveness of the united states? shawn: a strong dollar encourages exports and discourages exports, which become less competitive because they become less expensive, so it is a natural kind of effect there. the second thing is that the picture in nonoil exports for the u.s. economy is really interesting. yes, the u.s. is exporting more oil than it ever has come up at the same time it is importing more nonoil goods than ever, so that is offsetting the boom in oil exports. david: ok, many thanks to shawn
in washington. welcome one of those responsible on capitol hill for supervising u.s. trade policy, it is the republican senator john thune, the third ranking republican in the senate. thank you for being with us. sen. thune: nice to be with you. david: we were talking about the trade deficit numbers that came out and it is certainly a cause of concern for the president, are you worried about it? sen. thune: i am mean, yes and no, the numbers go up and down, but it points to the broader issue where our trade relationships are concerned and we need to be opening markets. it is hard to open markets when you are in trade fights with countries and you are imposing tariffs, those invite retaliation. in the end, what we need if we want to see the economy grow and expand, are real intense efforts to get some of these markets
open. that means it china, obviously, as well as the eu and japan. those need to be put into place and concluded. and open up those markets to our products, then i think you will see the number change in a positive direction. david: we know the president and robert lighthizer are working hard on the china issue in particular. do you have information about how far along they are? there were reports earlier in the week that we are getting close. sen. thune: i met last week with the ambassador and we hear from him on a regular basis, as well as other members of the team on trade, and they are optimistic that something is coming together with china. we have a lot of outstanding issues with them, intellectual property theft, technology transfer, and a lot of serious issues and i am glad the administration is taking those seriously and working hard to get a better deal. obviously, with china the challenge is enforcement. i hope they can ink something
soon that would at least get us to a place where some of the markets open up again. we are sensitive in the midwest with agriculture, 65% of our soybeans go to china and a that market for all intensive purposes is shut down, so it is important that they close these deals. they seem confident it will happen. david: talk about the sensitivity, starting with south dakota, what are you hearing from constituents? there were reports over the weekend that actually there has been really economic effect on america because of the tariffs. sen. thune: i think that is true. most of our farmers like the fact that the president is taking on china and other countries around the world who have been taking advantage of us and have been using abuse in terms of our trading practices, but there are also people who are pragmatic. and they are feeling there will economic impacts. it is getting harder to get operating loans.
more and more farmers with commodity prices staying where they are and the exports have been closed off because of the tariffs. you see a lot of anxiety and distress. that will continue and that is why it is pretty important that they show progress, the administration, on trying to get these deals done. right now, at least in the farm country, it is people -- people want to support the president, but they are also feeling economic anxiety as a result. david: i think that many people would say the farmers have been patient with the president and he has reached out to them, but how much patience do they have? i'm not asking for a deadline, but are we talking about weeks or months, how long can this go on before there is real dissension, among the republicans on capitol hill and those constituents? sen. thune: both are feeling the pain. the economic pain felt by the
farmers is real. planting season is upon us and last year they were scared a little bit because a lot of them forward contract and a lot of the crop was ford contracted above the cost of production said they could break even. there is a concern that this year that is not going to be the case. lenders are trying to work with them, but if they have negative cash flows they are asking the borrowers to put more equity on the table and liquidate some of their land, and to be able to get operating loans they can do that for a little bit, but not very long. it is a situation where the farmers have been patient. they understand it is a long game, but at the same time when people lose their farms over this, the economic impacts become very real. that is why there is a sense of urgency attached to these negotiations. david: we are focused on china, but the european issue is pending. lighthizer will be
meeting with counterparts today about the eu negotiations. i'm from michigan, we are worried about cars. so how concerned are you about the possibility of another trade war opening up with europe? sen. thune: i do worry about that. and the discussions we've had with the administration's team is really important, because they are talking about retaliation. i know that in the world of agriculture, we have always been bothered by the fact that the european union imposes nontariff barriers, sanitary, what we think are bogus artificial issues to try to protect their own agricultural economy. so we want to break into that. but, obviously, it will be a challenge and there are many other issues and sectors of the economy impacted by the trade relationship with the eu. so i hope they can work through it. they should be our best trading partners, and obviously there is a lot at stake for both parts
of the world, for europe as well as the u.s., to try to get a deal that works for both economies. so i hope they can fight through this and get to close a deal. david: if china and europe were not enough, we also have mexico and canada and we thought that we were passed this with a new form of nafta, but we also hear rumblings on the democratic side. will we get ratification of the new deal? sen. thune: i hope we can and i hope the democrats will vote for this. we are still waiting on the review, which was supposed to have been done by now, or at least pretty soon. i think it will be delayed because of the government shutdown. but once we have that, and that is called for in the trade promotion authority, once we have that information hopefully we can move the process forward and get to a vote, and there will be enough democrats to pass it. i think it is important we get it done. there is a lot riding on it. it is good for agriculture.
we concluded it was an improvement over what we had with nafta, so the ag economy is very interested in seeing this thing get done, but it will require a vote in the house, then the senate, and i do not think at this point they can do much to change the underlying agreement, but there will be democrats in the house who will try to exact more demands from the administration on this, but i just hope we can see clearly to realize how important that relationship is. canada and mexico are two of our biggest partners, they argued markets for american agriculture, and that deal needs to also get done. david: it is not trade per se, but we have an issue pending involving the declaration of an emergency involving the building of the wall on the southern border. it appears right now that it looks like the congress will pass the resolution on both sides, the senate and the house, to interfere with the declaration, although there is the issue of overriding a veto.
what do you think? sen. thune: the leader in the senate made it clear that the resolution will probably pass, it also passed in the house, but not with a vetoproof majority. i think they will not be able to override the veto in the house, so i think that the issue is the president will be able to move forward, subject to litigation, which i think is inevitable. they will be in the court for some time on this. we will vote on it in the senate , that should occur next week. we have members who are still looking at this, concerned about the standard this was set for a future democrat president who might have priorities they may not agree with. but i think that we will have the vote and the senators will go on the record on this, and i know that we all agree on one thing, that is if there is an emergency at the border, the numbers do bear that out, and it is something that needs to be addressed. the president needs resources to do that. that is an issue that all
republican senator's can agree on, but what is the best way to resource it is the question. david: thank you for your time. that is senator john thune of south dakota. and coming up, they are off and running with a growing list. democrats running for 2020. we go over the list of jim messina. -- with jim messina. that is next. this is bloomberg. ♪
secretary for the first time since democrats took control of the chamber. the chairman says oversight of the trump administration's border policies is long overdue. the secretary told the panel that southern border crisis is not manufactured. >> make no mistake, this chain of human misery is getting worse. yesterday, we announced the numbers of apprehension of the border have spiked again, substantially. and last year, we have been seeing 50,000 to 60,000 migrants arrive at each month. mark: house democrats have been investigating the family separations at the border and have subpoenaed documents related to the policy. the european union says "difficult talks with britain have failed to break the deadlock" less than a week before they will reject or approve the divorce deal with the block. an official says that the two
sides are having discussions on new proposals, but no solution has been found. have beencivilians evacuated today from a territory held by the militants in syria. thousands of people have came out of the area in the last few days, under a stepped-up assault by the u.s. coalition and ground partners. many of those leaving today were the wives and children of islamic state militants. carlos ghosn has been freed after 108 days behind bars in tokyo. the former nissan chairman was released after posting his bail. he was arrested in november over abigail johnson's death over allegations of misconduct. he could still -- over allegations of misconduct. he could still be arrested on new charges. 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.
each week brings a new democrat saying they will run for president, or at least they are considering running, and we have yet to hear from joe biden. for an early read on the field, we welcome jim messina, former white house deputy chief of staff. he is coming to us from washington. good to have you back. jim: my pleasure. david: bill burton, he served in the obama white house and right now he is working with howard schultz as in independent who is thinking about running, and he's adjusted what -- he said just awakenings we are not getting out of the democratic field. >> howard schultz is looking at the question of whether he should run as an independent, because he loves this country and he is worried about the polarization and the impact it is having on the conversation and of the inability of washington to get things done. so i think you have republicans saying one thing, far left
democrats saying another thing and howard schultz is just trying to listen to the american people to see if this is the right time for his candidacy. david: there is your former brother saying we have republicans on one side, far left in the cuts on the other, is there room for a moderate voice? jim: i think he is making a bunch of money peddling that bs. that is ridiculous. you saw a moderate governor, john hickenlooper of colorado, he announced he is running. joe biden is talking about running. the only reason that howard schultz is running as an independent is because his team has made the assessment he cannot win the democratic primary. questionok at it, the for reelection campaigns is always about one thing, who are the people who are available to say that they want to fire the president? if you will split that will between the democratic nominee and an independent like howard
schultz, that is going to materially help donald trump added and that would be a disaster for the country, and for the party, and i do not think howard schultz should run for president. clear,that was pretty but talk about getting to the primaries and getting nominated, because howard schultz, you have decided he could not get through the primaries, could a moderate get through the primaries? i won him elizabeth warren - - will name elizabeth warren a bernie sanders who are not in the center of the party. have 15 tok we will 20 people show up in iowa, that is the most diverse field in american history. iowa, you onlyin need about 10% or 50% to win -- 15% to win the caucus with so many candidates. i was reporting yesterday that mayor bloomberg's team told him
there was a pathway. i think you did a selfless thing and decided not to pursue it for himself. and i really admire the decision he made, but i think there is a pathway for michael bloomberg and other moderates who want to be the nominee for president. david: to be obvious, michael bloomberg owns bloomberg lp, our parent company. he is not going to run. he will work on some specific issues, like climate and gun control, things that are near and dear to his heart. but coming back to the democratic primary, can they beat -- assuming you get a moderate through the primaries, can a moderate takeout president trump? jim: absolutely. i think the unifying force right now in the democratic party is the hatred and anger at donald trump. whoever comes out of that primary, i am sure it will be long and divisive, people forget that in 2008 barack obama had to go to all 50 states to beat
hillary clinton and the party came together and we won in 2008. so whoever becomes the nominee can be president, but to my democratic friends we need to stay focused, because donald trump is the best negative campaigner and political history and whoever is going to come out of the primary is going to get whaled on. look what he has already done two elizabeth warren. this is a primary were 61% of democrats say the most important issue is who can beat donald trump, that will be a unifying factor in the general election. david: is representative nadler, is he doing the next candidate on the democratic side any favors by raising the impeachment prospect, and with these investigations going on? jim: i was the deputy chief of staff when republicans took over in 2010, and i got a lot of
letters from the reform committee asking for information and to testify, this is not a surprise. i think he is doing what he should be doing, trying not to talk about impeachment and staying focused on getting the facts, let's wait for the robert mueller report, then an investigation on the other stuff. the obstruction stuff is not being looked at by robert mueller, so it is natural for the house to look at that and make a decision. but i think that chairman nadler is being really careful. david: it is good to have you. that is jim messina, former white house deputy chief of staff. a check on the markets as john williams is speaking of economic club in new york. he says the fed can afford to be flexible and wait on data. you can see that on your bloomberg devices. this is bloomberg. ♪
david: you are watching "balance of power." i'm david westin. now a check of the markets. emma: equities in the red in the u.s., a half percent down on the s&p 500. and today we have seen falls of more than 5/10 of 1% on the s&p 500, nasdaq down more than 7/10 of 1% suggesting that the trade balance,, the jobs report, and the beauty i -- and wti digesting data, showing that inventories have risen and oil lot of people- a talking about the market. you can see this with the s&p 500. eeking out a small weekly game last week, but look at it over the last seven days it has been six -- been down six days of the last seven days. and the dow down six days out
of the last seven. so we're looking at greater direction for the market there. here is a look at the canadian loonie. and this chart shows it against the dollar, suggesting weakness. unchanged left rates and the market is concerned about that. david: ok, thank you. the bipartisan push to lower drug prices. we will talk with republican senator susan collins about what legislation could be in the pipeline and the big hearing she is having today. that is coming up next. live from new york, this is bloomberg. ♪
the trade imbalance t a decadeo long high. the gap with china widened to an all-time record. and president trump has promised to shrink the gap. michael cohen back on capitol hill for a fourth day of testimony. the former lawyer of president trump is having a closed-door meeting with the intelligence committee as it pursues investigations into mr. trump's white house, businesses and presidential campaign. he testified before the oversight committee last month, where he called mr. trump a conman, cheat and a racist. iran says there is no chance that the country will negotiate or compromise with the u.s. in a televised speech, the president there accused washington of trying to topple the government in toronto. -- tehran. the trump administration says stopwant iran to
supporting militant groups. and bomb disposal experts destroyed the suspicious package at the university of glasgow today, a day after three london transport hubs received a letter bombs. police are investigating and it say it is too soon to say whether there is a link between the incidents. the scottish university said that several buildings on campus, including the mail room, were evacuated as a precaution. 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? mark. thank you so much, health care continues to be of utmost concern to most americans. and although republicans and democrats disagree on what to do about it, the one thing they agree on is the cost of prescription drugs are too high.
senator collins is chair of the special committee on aging and just presided over a meeting on the subject. welcome, good to have you with us. sen. collins: thanks so much. david: tell us what you have learned with a hearing and where you are going. sen. collins: we are having a three-part hearing today. we are focusing on the impact of the high prescription drug prices on patients, on those who require them. and what we have learned is patients are going without needed drugs, that they have a terrible time affording these drugs, and it is taking a toll on their health and on their finances. tomorrow, we will pick up and hear from policy experts on what we might be able to do, and then the third hearing later this spring we will hear from administration officials about their efforts to dampen the rise of prescription drugs, and make
their costs more transparent. david: as you know, the kaiser foundation has done polling on this, and if find almost 80% of americans believe the prices are too high. and almost a third, 29% say they do not take all the medication they should because of the cost. what could be done about that? sen. collins: that is what is most disturbing, is when you hear from people who actually made these medications that have been prescribed -- need these medications that have been prescribed by these doctors, and they cannot afford the thousands of dollars each month, in some cases, that the medications cost. i think there are a number of actions we can take. first, we need to have a more competitive prescription drug marketplace. that means addressing the gaming of the patent system, where a brand name manufacturer will --
when the path and is about to expire on the drug it has developed, file a bunch of new patents and change the formulation of the drug slightly in an attempt to keep competitors out of the marketplace. we have got to stop that gaming of the patent system. there are other actions that we can take as well. for example, sometimes the generic companies have a very difficult time getting a sufficient number of samples of the brand-name drug, in order to do the bio equivalency tests required by the fda. that should not be allowed to occur as well. there are a couple ideas we are exploring and i've introduced a bill on the patent issue just this week, a bipartisan bill. david: one approach is more competition from generics, basically both of those things
sound like they would help generics, but what about the pharmacy benefit managers? we hear about them, they say that the real problem is the payments going to them, some might call them kickbacks, that is really driving up the cost. do you have initial thoughts on that? sen. collins: i certainly do. i have seen in supply chain that has less transparency in it than for prescription drugs. and what we have are a series of middlemen who benefit from the pharmaceutical company having a high list price, because they get rebates that are usually a percentage of that price. the administration, to its credit, has proposed a new role that would say -- rule that would say that if there are discounts, they have to flow down to the patient at the
point-of-sale at the pharmacy, and that we need a different system for reimbursing those doing the negotiations, the pharmacy benefit managers. there are a lot of people getting very wealthy along this entire supply chain and in the end the patient is often not seeing the benefits of the negotiations that occured to produce a lower price. david: you are the chair of the select committee on aging in the senate, do you envision legislation from your committee or other committees coming out to address this, or is this something that will be dealt with with regulation or other means? sen. collins: we need an all of the above approach. our committee does not have legislative authority, but we can use the hearings to identify solutions, introduce the
legislation, which would go to the judiciary committee or the health education committee. i also believe the administration is right to pursue regulatory solutions, ande the medicare program medicaid program are big payers when it comes to prescription drugs. another option that the administration is looking at, and we are also doing through legislation, is where there are shortages of prescription drugs, which occurs periodically in this country, we ought to be able to import from a country like canada that has lower prices. in fact, it is really re-import ation since we send the drugs to canada in the first place. it does not seem fair to me that the u.s. consumers bear the cost of the research and development of drugs that
benefit the entire world. david: as i said in the introduction, it appears that everyone can agree on some need to address prescription drug prices, but that is not all of health care costs, health care costs are rising dramatically, up about 18% now. a lot of those costs are other things and there is not as much unity in that area. are there things that your hopeful the republicans and democrats can get together to really bad that cost curve -- bend that cost curve? sen. collins: yes, i am. i think we have to look at more innovative delivery models. we need to modify some of our reimbursement policies. for example, there is a practice in maine and that does a terrific job of checking on people who have diabetes, one of our most expensive diseases in this country. and yet they cannot get reimbursed by medicare for
making that weekly call to the patient to make sure that they are complying with their diet, medication, and to check on their blood sugars. yet, medicare will pay if that patient with diabetes has terrible consequences from uncontrolled diabetes and is forced to have amputations or loses his or her sitght. we need to look at what we reimburse for and help change our policies to help keep people well. that will lower health care costs in the long run. david: one more question, not about health car directly -- health care directly, that is about the resolution pending in congress, about to go before the senate to rescind the declaration of an emergency to build the wall. we just had senator thune on and he said the vote could come next week. where are you on that and how do you see the votes?
sen. collins: i am for the resolution. and i have cosponsored a resolution with the senator udall of new mexico. and i feel strongly that this is not about whether or not you are for the wall or against the wall, or whether you agree with the president or disagree, this is the constitutional issue. this is about congress protecting its constitutional prerogative to have power over the purse and to appropriate funds. if the president can repurpose billions of dollars for other projects that were turned down by the congress, that has enormous implications for our separation of powers and for our constitutional system. that is the job of the legislative branch, not the job
of the executive branch, or the judicial branch, to decide how many is to be spent. the president's role is to either sign the bill into law, havee veto it, he does not unilateral authority under the constitution to move billions around without permission from congress. david: senator, thank you so much. we appreciate you spending time with us. susan collins joining us from capitol hill. coming up, the oecd is projecting slowing global growth, in part because of trade friction. we will talk to a senior fellow from the brookings institution. that is next. this is bloomberg. ♪
david: you are watching "balance of power." i'm david westin. trade was featured prominently earlier today, cited as a cause of decline in world growth. with the forecast cut from 3.5% to 3.3%, and majorly bad for exporters like germany. we welcome now a true trade expert eswar prasad. ,he is a senior fellow for development at the brookings institution and comes to us today from washington. he is the conversation in chief today. thank you for being with us. address the oecd projection, is it really trade slowing down global growth? eswar: it is hard to pin everything down on one factor, but an interesting theme, as growth slows in europe, there seems to be the foreboding of slowing growth in china and the
u.s., and one common theme is business and consumer sentiment seems to be weakening, and that is having a dampening effect on investment growth, private investment in particular. so that is not bode well for short-term growth, but also for long-term growth. and with things that could be affecting investment, 1-wood think that trade -- one would think that trade is an important part of why the weakening sentiment is leading to weaker investment. david: if there is reluctance to invest, does that suggest that if we did get a deal with china, almost regardless of what the deal actually said, that would relieve a lot of pressure? eswar: not quite. my baseline assumption on the deal, i suspect there will be a deal, is one where there will be the escalation of tensions,
where the u.s. agrees not to move from 10% to 25% and china agrees not to retaliate in response for some concessions. but what the chinese are likely to give ground on is perhaps buying more american products, goods and services, making concessions in terms of market access, but not really coming to concerns thatore the hardliners of the trump administration have, not just about intellectual property right protection, but about the broader issues related to the china strategy. china will not go there and it will make a hard to get a deal. so to get a slight reduction of tensions, with underlying tensions likely continuing to fester. david: you must be busy these days, because we have not had only china and europe, we have got still the north american
situation to deal with, and the president has now added india and turkey to the list. talk about india. we have a chart that indicates the balance of trade deficit with india, which has been growing substantially. what is the issue with india? preferences is the way that the u.s. provides access for imports pro-kurdish from a number of countries consider low income. india is not quite a low income country anymore, it is like a lower middle income country, $2000,eans it is over making it harder to justify maintaining these gst's. the amount involved is not very large. d a little over $50 billion worth of goods exported to the u.s. every year and that is about 10% or 12%. so not a huge hit. but symbolically it is
important. india in the asian region, the u.s. talks about one thing in aeir strategic ally -- as force against china and russia. this is not going to play very well in india, especially because this is a lead up to the election season, so it is a bit of a slap in the face for prime minister modi, and it will not play well in india, although the effects will be limited. it goes into the broader pattern of the trump administration being tough on trade issues, even with long-standing allies. you have seen this with north american partners. that does not play well in terms of the u.s. maintaining relationships with its allies. david: talk about another aspect of economics, where the u.s. may be playing tough, the nomination of -- to run the world bank. i talked to david when he was nominated, and this is what he
said about the world bank and where he thought improvements could be made. david: i want to make it more effective. i care deeply about the mission of the world bank and of development in general. and the reforms that go along with capital increase, one of the important ones is to graduate the bigger countries, countries with more income, out of the borrowing stage with the world bank. that leaves more resources for developing countries. one thingbe clear, that david said was when he was in treasury he helped to get the capital raised in, a but i think he is really referring to china and india as countries still getting loans from the world bank, and they will no longer be classified as the poorest countries in the world. does he have a point? eswar: he was very helpful at the world bank in capital increases, and certainly that is
an institution that needs a change, they should not be lending as much to china and india. it is an institution that needs reform of the overall mission, but the big question is whether he is the right person to push forward in what should be the key priorities of the world bank. its competitive advantage in terms of helping countries, it helps countries deal with climate change, environmental degradation, reducing poverty, especially in rural areas, improving education and gender equality -- so whether he is committed to those objectives, especially since those are not very closely aligned with the trump administration's priorities, makes a big question if he could be right for the world bank. suggest,, as you president trump has not been enthusiastic about dealing with climate change. wants to takepass
it in a different direction, does that raise questions if you look at the confirmation that he needs? eswar: there has been virtually no objection by any country for david malpass, and the one candidate put up by another country has been withdrawn, so there seems to be no organized organization to having david malpass as the sole nominee. there could be other nominees that come out of the woodwork before the deadline, but i do not get a sense of countries around the world coming together against david malpass, which suggests a sorry state of affairs, that even within the context of the world bank that many countries care about, there does not seem to be any group of countries that seems willing to take on this battle against the trump administration for fear
david: the nokia ration of a new president gets more elaborate every time it happens and donald trump's was no exception with supporters flying in from all over the country, but this president was especially interested in the details. why are we so fascinated with his role in this? >> a few things. theeffort strangely is subject of a ton of investigations right now. your federal prosecutors in new york, attorney general in new jersey and washington, and now the house judiciary is asking questions about it. and sarah huckabee sanders has
said that donald trump had no involvement in it, which is weird for those around the transition, the campaign, to hear, because as our reporting shows he was intimately involved in planning this, which we should point out is not unusual for any president. david: and not a legal -- not illegal. for example, he wanted table cloths. >> he was very worried the rockettes were not going to show up, some had taken to instagram about performing for president trump. they did ultimately perform. but he would weigh in in real-time for the meetings. the chairman would call him up, get feedback from him and he was also interested in the financials, something the investigators are interested in. david: it is not so much who shows up, it is more who paid for it and how, isn't that what the investigations are looking
at? >> they are incredibly broad right now, so they are looking at who the donors were, what the relationships look like. so we are not quite sure what they are focusing on, we just know that they are asking a lot of questions. david: you need the rockettes, get the rockettes, he was assisting. thank you for that terrific reporting. the former cisco ceo will join us from the montgomery summit at 1:30 p.m. eastern time here on bloomberg television. ♪ this isn't just any moving day.
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scarlet: i'm scarlet fu. this is bloomberg "etf iq," where we focus on the access, risks, and rewards offered by exchange traded funds. ♪ scarlet: the world's hottest stock market. investors stamp it into china's as msci boost the mainline waiting in the index and trade optimism picks up. alpha gets harder. bill gross warns investors they will never outperform the way he did during his heyday at pimco. and what draws more tv viewers than the nba finals, world series, or stanley cup finals?