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tv   Bloomberg Markets Balance of Power  Bloomberg  March 7, 2019 12:00pm-1:00pm EST

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where the world of politics meets the world of business. on the brief today, stephanie flanders on the ecb's bold move. kevin cirilli on the sentencing of paul manafort. it was bold and when it came across the wire i was surprised. stephanie: you look at what they are doing, it is all the things we expected them to do in a few months, but they did it today, so that is exciting. the markets are like, hold on, they are reacting because they are ahead of the curve, or because they do not have much ammunition. david: we will come back to you on that. we will go now to kevin cirilli. big event coming up this afternoon, paul manafort will be sentenced. kevin: he could be sentenced to more than two decades in jail. the hearing will begin just across the river here in arlington, that the sentencing
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anticipated for 3:30 p.m. paign the former co-cam chairman for donald trump. he was found to be guilty of different things. the white house has distanced himself that itself from paul manafort saying the crimes he was convicted of occurred when he was not involved with president trump's political orbit. that said, the president has not said whether or not he would ever pardon paul manafort. david: that was going to be my question, the fact that he said he did not work for me that long, i hardly knew the guy, does that tell us anything about the pardon? would he pardon him by himself, or wait until a group of pardons to do? kevin: i am sure that the president has not really used the power of pardon
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specifically, unless it has come in terms of a batch, so there are -- from the standpoint of whether or not he would pardon him, he has not said he will do that. he has been asked repeatedly about it over the past year. and i think we will have to wait and see. there is no question that should he do that, it would prompt a quick criticism from democrats, as well as some republicans, and there actually is some chatter on capitol hill to try to urge the president not to do that, should he decide to. david: kevin cirilli at the white house. we want to go back to stephanie flanders. you said not a big surprise what they did, maybe win they did it, but also mario draghi in his news conference made it clear that he thinks things are getting worse. the december with 2018 euro system macroeconomic projections, the outlook for real gdp growth has been revised
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asn substantially in 2019, likely in 2020. david: i wonder how that is, substantially, how that gets your attention. >> the growth forecast was revised down more than any time since quantitative easing began, so it is a significant change. i think what people did not focus on was how much the inflation forecasts is coming down. although you have the ecb on the front foot saying, we are going to be extending the window for keeping rates at this low level and we will do the new financing operations for banks sooner than expected, but they are also saying they will not get near their inflation target until 2020 or 2021. that is a lot of tolerance for a low inflation. david: i also wonder if that is the problem, if this is the solution. by making more available money
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for loans, is that what is holding the economy back? >> i think that these operations was to avoid a problem that would have come as the last tltros came to maturity. with maybe a italy new government by the summer and he would've had a lot of italian banks having trouble. and then the ecb policy becomes politicized. they did not want to that, they wanted it to be seen as a policy move. so i think that nothing this earlier helps with of that problem. it does not represent a sort of major attack on the source of the weakness in the euro zone economy. david: what does it do to the euro? we saw it fallen throughout the day, what does that say for the longer-term prospects? >> if you are mario draghi you have to wonder, you know that this has been a big part of ecb's policy and we happened to to see it weaken today, the
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2017,t it has been since but looking around the world you have all central banks maybe giving up on normalizing policy. so you will get into an arms race here. the prospect for weakness might be quite flim. we will see. you have had dollar strength, so maybe that will turn around. david: let's talk about brexit. >> i came away from london to escape brexit. david: [laughter] it satellite things were going theresa may's way, but now we have a report that maybe it is swinging back the other way. what is going on? >> we felt that in the ok there was a sense that the hardline brexiteers who have been holding the government iran some had started to soften, maybe there was a change in the backstop agreement that would be large enough for them to vote with a deal, but that is receding. we are still expecting her to lose the vote, but by less, not
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200, by maybe 100 mps, but still face what people call the brexit eternity. david: i understand if she does lose the vote on her plan, we have a vote to say we were not leave without an agreement, a vote to say delay, when will we ever get to a brexit? >> that is where the action will be, it will be on how long the delay is, can you get a majority behind a particular length of delay, whether it is three months or nine months. people do say, although we have talked about it for three years, we still do not know what kind of deal we will get out of the long run, what will be the relationship in the long run, and we should have a national conversation around that before we actually leave the eu. so that could be the final battle, we may even fall out of the eu on the 29th because we cannot agree on the length of the delay. i think that is unlikely. david: really? >> i think it is a much lower
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chance. when you talk to the people who have to spend more time thinking about this, like our brexit editor, she says we have been here before. things might look darkest before the light, that maybe we will find she has pulled a something out of the bag next week. david: it is the tradition of great britain, in my expense. >> it is a terrible tradition. david: [laughter] stephanie flanders, they could. now a check of the markets. emma: concerns about economic growth we heard from europe and the ecb president. as you are discussing those with stephanie, those are having impact on the u.s. stocks as well, losses across the board with the dow jones, s&p 500 and nasdaq falling. and also seeing the 10 year yield dropping by five basis 2.65., 2.265 -- to
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the concerns of global growth having an impact on the market. and another indicator of concern about global growth coming from u.s. industrial companies. switching the board, i have a chart that shows the s&p 500 industrials index, the white line, versus the s&p 500 as a whole. since the beginning of the year, the industrials have outperformed and they are actually up 14% on the year, but in the last four or five days you have seen them come down. you can see that within the red box. a number of people saying that is a concern and the industrial companies are starting to fall. they are signaling some concern about the outlook for global economic growth. and it is surprising, given we had heard positive news with regard to the trade war between the u.s. and china. and looking at the s&p 500. switching the board, take a look at how it has been performing. it is down, falling for the
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seventh day in 8. the closing losses each day increasing. yesterday, closing down more than 6/10 of 1%. take a look at the movers today. a mixed bag for the ones falling. kroger is down 10%, down more than that earlier in the session. earnings misstep, that did not help as the grocery wars heat up with amazon trying to get more into the grocery industry, planning to launch their own stores. kroger trading at its lowest since june. and wynn is falling after a downgrade. it may be time to take chip off the table. jpmorgan saying that they are less bullish on the casino stock. and finally, mosaic, that company falling 3.6% today. they are cutting phosphate production on whether concerns. -- weather concerns.
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david: the consumer protection barrel has a new head who is appearing right now to give her first official report to congress. we talked to one of the legislators asking the questions. 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 consumer financial protection bureau was born out of the financial crisis, but it is not a favorite of the trump administration. the new head is appearing now before the house financial services committee. we welcome a member of that committee, katie porter of california coming to us today from washington. she just stepped out of the hearing. thank you very much. we will get you back right away.
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we have seen the testimony, what are you hearing so far and is an answer your questions? >> i think that the new director is doing a good job of trying to establish a positive working relationship with the committee. there are hard questions for her about what has happened under mick mulvaney, so there is a certain amount of frustration and asking her, will you reverse course? david: reading her prepared testimony, the main thing i took away was she expects to emphasize stability and transparency as hallmarks as they mature the agency and besides the partnerships key to their success. there has been a lot of turmoil, so how much of that has been the overall direction? >> one of the issues is mick mulvaney reduced the size of the consumer financial protection bureau and closed certain departments, including the student loan department, so to
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the fact that he was dismantling the bureau, she has some work to do in stabilizing it. with regard to her statement on flex ability and consistency, those are really good buzzwords, everybody is for those things. it is all about asking more detailed questions, will you commit to doing the hard work on payday loans, to protecting student loan borrowers, what meaning does she put behind the catchphrases. david: payday lending was a big issue that they were moving forward on in the prior regime and mick mulvaney put a stop to it. is that a priority for the congress? >> it is. payday lending has been a constant problem in this country and it continues to be a real problem in many states, including california. and when i get back to the committee, i will be asking her about her views on payday lending. david: obviously, the democrats on capitol hill have a different
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orientation, i think it is fair to say, from president trump. he is against regulation. is there, ground you could find with this administration to really do things that president trump would be comfortable with and would pursue the goals you are seeking? >> the consumer financial protection bureau is not just there to protect consumers who vote one way or the other, it is for all consumers who want to take out a car loan, who use credit cards, who pay student loans, there is nobody in this country who likes to get cheated. and i hope the president will recognize that and i hope that kathy kraninger will be able to do her duty to americans consumers. david: you know well that there are powerful lobbies on the other side of this, people who really could have their businesses represented profoundly. how much of this is lobbying? >> i am part of a freshman class, many of whom do not take
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corporate pac money. i do not take money from people who work at the largest banks in this country, i am there to be an independent voice for consumers. and i think many members of the freshman class want to bring the independence, we are here to work for the american people and i expect the consumer financial protection bureau to do the same. david: do have a sense from kathy kraninger of exactly what her mission is, how she sees the mission over all, apart from individual regulations? >> we have been hearing from her about that. one of the things happening in this first hearing is she is trying to set a tone of being cooperative with the congress and the committee, and i think that is important, but she is also making clear that she does not know specifics, she cannot answer that question, she needs to do more research. while i thing she is being welcoming to the questions, it is pretty clear that she is new on the job and she has never
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worked in the consumer financial for, so she has a learning curve and we need her to get at it and get to climbing and quickly. david: i want to get you back in the hearing. thank you so much. democratic representative porter from california. now here is bloomberg first word news. mark: later this afternoon, the former trump campaign chairman paul manafort will be sentenced for bank fraud. he is 69 years old and he could receive 20 years in prison. observers believe a federal judge in virginia will give him less. his lawyers claim that he was unfairly snared by the special counsel's investigation into russian election meddling. in the meantime, the president's former lawyer had expressed interest in a pardon for mr. trump, according to cohen's attorney who said that representatives from the president dangled the possibility of a pardon after federal investigators raided his home and office last april. that contradicts cohen's
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testimony before congress, when he denied ever asking for a pardon or be willing to accept one. the house oversight committee has a warning for commerce secretary wilbur ross. he has been told in writing not to try to put off a scheduled public hearing before the panel next week. the main topic will be his role in seeking to add a citizenship question for the 2020 census. a statement from the committee chair says that ross was asked to testify months ago. european union member states have rejected a proposal by the eu executive commission to blacklist 23 countries and territories and believes pose a risk of money laundering or terrorist financing. that list included four u.s. overseas territories, which anger the u.s. government. the list is used for investigations on financial transactions from those places to find suspicious money flows.
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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. union,g of the european coming up this afternoon the eu trade commissioner will you join bloomberg television after she meets with u.s. trade representative robert lighthizer. that will be at 3:30 p.m. eastern time. this is bloomberg. ♪
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you are watching "balance of power." i'm david westin. tesla shares rising 2%. it is our stock of the hour. it plans to have charging times at 15 minutes for the model 3. emma has more. emma: they are updating their network to cut the wait times to 15 minutes. c as they areodel rolling out this market this year, allowing about twice as many cars to charge each day. the first one, the first one of these is super will roll out in
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europe and asia into the fourth quarter of this year. it is really them trying to get ahead of rivals, the likes of porsche trying to roll out some superfast chargers. david: they are selling a lot of porsches, who would've thought? so, 15 minutes, that sounds remarkable. it must cost a lot to do that. emma: i think they are spending a lot to do this, but we have seen a lot of automakers trying to get at this, tesla as we mentioned, porsche, but this has been sort of the bottleneck in the next -- along the road toward getting more people to drive a electric vehicles. some 200 models due to come onto the roads or at least be offered by 2023. and a lot of charging now happens at homes and offices, but one of the big concerns for consumers is how they will charge on the go, that is why we see a number of all these automakers working to do this. it is interesting whether they
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should be doing it, countries it should be doing it, and larry fink talked about it, where he addressed the issue with erik schatzker. >> in germany, we will be focusing on making sure that our cities, our auto bonds are prepared for the electrification of cars. that could be a great fiscal spending. that could be really transformative for the cities. >> have you talked to german leadership about this? >> i have spoken to many people in germany about it, i will not say who i have spoken to. emma: he did not reveal who he was talking to in the german leadership about this, but fiscal stimulus, this could be a good way to provide that in germany. but the desert is it will build the charging networks for the electric vehicles. david: it is not just germany. when i was at the auto show in detroit this last january, i spoke with david dingle, a
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congress person from michigan, and she said she believes in the infrastructure because she thinks we need it for electric charging stations. she said, would we get the infrastructure package, she said some of it should go for charging stations in the u.s. emma: you think of america and everybody has the freedom to drive, whether it is through gas or electric vehicles, you want the convenience of being able to charge. if you have to go to a provider of your car, that might make it less convenient and more difficult, and how do you manage with different charging types and plugs and cables. david: the problem we have is with the railroads at one point we had the different gauges with the railroads, so we would need a standard at some point. asa: that is the concern, automakers are trying to do this because nobody else is doing
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this, they need to get the charging stations on the road and soa the customers will buy the vehicles and not worry about breaking down in the middle of nowhere without a charging station nearby. there is the concern of actually that government should be taking the lead. david: not enough to make it a cheap model 3, elon musk has to make one that you can charge wherever you want. up next, the democrats were ushered back into power with high hopes for the house, but now the agenda is overshadowed by anti-semitism and splitting the caucus. we will discuss it with our panel, next. watches online at gtv . this is bloomberg. ♪ this isn't just any moving day.
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this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows.
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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 justice department is cracking down on fraud scams
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that they demise senior citizens -- that victim my senior citizens. they are bringing civil cases against dozens of them. the cases involve more than 2 million victims and officials say that wherever possible they are trying to recoup the money that was stolen and return it to the victims. the canadian prime minister says a lack of communication with his former justice minister led her to resign. the prime minister denies the claims that he and senior officials tried to persuade her to help engineering giant lapland. the prime minister are just the dispute -- talked about the dispute that has shaken the government. >> it has become clear that over the past month there was an erosion of trust between my office and specifically my former principal secretary's, and the former minister of
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justice and attorney general. mark: he and his aides say they were pointing out that the prosecution could endanger thousands of people's jobs, because a conviction would make the company and eligible for government contracts. police investigating a fire that killed 72 people in a london tower two years ago say that nobody is likely to face criminal charges until a full probe is completed in 2021. officials are considering manslaughter charges in the june 2017 blaze that engulfed the 24 story tower residential building. the survivors group called the delay frustrating and disheartening. more fallout from the sex abuse scandal that has rocked the roman catholic church. a french cardinal convicted of failing to report a pedophile priest has offered his resignation to the pope. the cardinal has given a six-month suspended prison sentence today. he spoke of his compassion for the victims and said that they were in his prayers.
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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, mark. to powerrats returned with high hopes and a commitment to transparency, but nancy pelosi has had a tough time getting the caucus to focus on anticorruption legislation. we welcome now our political roundtable with jennifer holdsworth, who has worked on democratic campaigns and is the senior vice president of issues management at mwwpr. and she joins us from washington. in new york, jen kearns, a former spokeswoman for the california state republican party. jennifer, howth big of a problem is this for nancy pelosi? >> i do not think it is a problem for her, i think that she is compassionate enough
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to bring everybody back under the amber alert and to say, we have to get a hold of what is happening and we cannot let the republicans or narrative push -- or media push the narrative of what is happening. ons the resolution and focus not entering into something like this again. let's move on. anid: jen, let me give illustration of how may be the speaker hopes to do that. she recently spoke and she said, listen to what she said. >> that is what we are working on, something that is one resolution addressing these forms of hatred. not mentioning her name, it is not about her. i feel confident that her words were not based on any anti-semitic attitude, but that she did not have a full appreciation of how they landed on other people, where these words have a history and a cultural impact that may have been unknown to her. david: that is the new , who hasoman, the here
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been accused of anti-semitism in her tweets. jen: nancy pelosi cannot be happy about this. you look at the priorities she listed when she took the gavel back, she said it would be criminal justice reform, taking on big pharma, looking at gun control loopholes and the list goes on. she did not expect to be, in the first week of march, still dealing with anti-semitic remarks from her own caucus. make no mistake, there is mutiny on the bow. this is very interesting, because nancy pelosi is a strong figure. she is what i would call a tough broad. the fact that she is having this sort of issue within her own caucus is surprising. you really look at the news cycle now, there is no doubt about it that nancy pelosi is not in charge of the caucus, she is not the leader anymore, it is cortez, and the other congresswoman. david: as you say, nancy pelosi
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is pretty tough. let's go to breaking news. brown, the senator from ohio, has tweeted he will not run for president after all. jennifer, what do you make of that? jennifer: i think it is unfortunate. i think he would've brought a very interesting voice to the party. there are a lot of folks who are hoping that vice president joe biden jumps in and i think that brown would've provided a younger version of that voice, somebody who can connect with the midwest, with the rest -- rust belt, with working-class america. but on the other hand maybe it is patriotic. he knows that we have great voices in the party that have declared or are looking to declare already, and if he thinks he can be useful in another way, more power to him. i look forward to the boys he will provide in 2020. david: are republicans breathing
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a sigh of relief, because brown did overlap with president trump on important issues, such as trade? jen: also health care and bringing jobs back to ohio. i spoke with one poster, the only one that has gone the last five elections right, including the midterms, he said that brown would be the number one threat to president donald trump. and i will tell you what this means, the fact that he is not running, the fact that michael bloomberg is not running, and the vibe that i think you will see howard schultz, the starbucks ceo, also back out, this tells you there is no room for moderates in the democratic party today. that they have moved so far to the left where they are now carrying a socialism banner, there is no room for a moderate. that is unfortunate. david: we have to remind everybody that michael bloomberg is the owner of bloomberg lp, so we do report up to him. he will not be running for president after all. i want to talk about moderates,
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we have not yet heard from joe biden, as we have heard from jen, there is no room for moderates a bit is there room for joe biden? moderate andm a i'm still a member of the democratic party. but, yes, there is room for moderates, centrists, progressives, pragmatic progressives and democratic-socialist in the democratic party because we like to discuss policy prescriptions from all angles. while the republicans want to make it seem that we are nothing but a bunch of socialists, that is not true and i think that you will see from the 2020 candidates that you will have a lot of policy prescriptions, with may be different here and there, but we like to talk about being a big tent, not just from the profile of those folks we welcome into the party, but from the policy prescriptions we like to talk about. david: i think that we will hear about socialism from the president, the most we have
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heard in years by the time the campaigns are over. we have a little fracturing of the republican congress over this emergency declared by the president. we spoke with the republican senator from maine yesterday, this is what she had to say. >> this is not about whether or not you are for the wall or against the wall, or whether you agree with president trump or disagree with president trump, this is the constitutional issue -- a constitutional issue. this is about congress protecting its constitutional prerogative to have power over the purse and to appropriate funds. david: you have heard from susan collins, mitch mcconnell saying he will lose the vote, but the question is whether he can hold of the veto or not. is this the beginning of cracks up on capitol hill? jen: i think it is disappointing to the administration and the base. this is much ado about nothing,
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the resolution that they are expected to pass, it has no do anything tot the president to roll back his national emergency. in fact, the president can actually veto this. and it is expected that the house what actually uphold the veto. and no doubt it will face legal challenges and go to court, i think it will go all the way to the supreme court and i think that ultimately the supreme court does uphold his executive authority. david: last word, jennifer. whether in fact this is going to the supreme court or not, is there a larger issue here, that is the question about whether some people on capitol hill, including republicans, are getting increasingly concerned about the authority the president is arrogating to himself, because there are other proposals to cut back on his trade authority? jennifer: i think it is. i think it is a power grab by the executive, specifically this
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executive, that is unbelievably concerning. i applaud all the republicans who are taking a hard look at this and putting their money where their mouth is. i heard him scream about president obama grabbing executive authority for eight years. and for them to come out and say, we do not want to this president to do that, that is brave of them, but there is a larger issue. i have faith that the u.s. supreme court will absolutely overturn this. it is unconstitutional to anybody who has been able to read it. david: fascinating. i never predict what the supreme court is going to do, so i respectfully disagree with both of you because i do not know what they will do. that is our political panel. thank you both. coming up, we speak with a former justice department official about the sentencing of paul manafort and reports that the president may have influenced an attempt to block the at&t time warner merger. that is coming up next. this is bloomberg.
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david: you are watching "balance of power." i'm david westin. paul manafort is to be sentenced this afternoon in northern virginia on offenses that could result in him being imprisoned for 24 years. we welcome now harry litman, who is now working in canada and comes to us from california today. not a bad place to come from. good to have you. >> good to be here. david: we want to have the sentence for paul manafort for another three hours, but what relevance does this have? throughout the proceedings, the speculation was we had the independent counsel trying to
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testifyinganafort to for the president, but we're too late for that now. >> he applied maximum leverage and not absent a pardon route, it looks like it is all basically just piling on. i mean, i think that he has a slim possibility of not serving his entire life in prison, but it is remote at this point. this is only one of two sentences, the very best hope for him is that judge ellis gives him a light sentence under 20-24 years that the guidelines call for, then the d.c. court makes it concurrent, rather than consecutive. that is a big roll of the dice and that still has them in his late 80's. he is playing for a pardon, and that is really his only hope and it is looking somewhat remote.
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david: you prosecute a lot of these cases, but typically my impression is the best hope you have to get some sentence reduction is to really be contrite and say i have done something wrong, i feel terrible about it. i do not see mr. manafort saying that. i have heard, i would not have gotten caught if not for the independent counsel. harry: that is the second best way. the best way would have been to cooperate with the prosecution. being contrite now helps a little bit at the margins, and you are exactly right, he has tried to play a both ways eddie he has not even wanted to come to court. -- ways and he has not even wanted to come to court. so whether the judge gives him credit for that is also in doubt. but the judge has ways to depart and give him a lower sentence, just because he thinks it is called for. i have been in front of that judge and it happened to me, so
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it could happen to his team today, but it will not happen enough to make a difference in his life, it does not seem to me. david: i want to turn to a different subject, something you have written about. there is a report in the new yorker that says -- that president trump did his best to order the justice department, not directly, to really go after the at&t-time warner merger. sometime in the summer of 2017, before the justice department filed suit, the president ordered -- to pressure the justice department to intervene. that is pretty rare. back in the old days we had a scandal that had people getting indicted. is it illegal for the president to say interfere with that merger? harry: not even slightly. and i found this to be one of the biggest outrages in an administration that were full of them. yes, he should not be monkeying
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around with the justice department. said iiced that cohn will not do it. but much bigger than that is the reason he did it, he did it out with thediscontent tone of their coverage towards him. it is the most fundamental of first amendment problems, the leader of the country trying to suppress or punish the media because he does not like their coverage of him. if he could do that, we would not have a free press. i found it really outrageous. david: as you know, there is a dispute on whether you can indict a sitting president, but what about impeachment, is this grounds for impeachment? the president has said he is concerned about media concentration. he could say cnn gets things wrong, but then underscore it with -- the concentration. that would be a concern,
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wouldn't it? harry: i think we would not believe him. but if he had a legitimate reason, that would be a different story. suggests, going back to even before he was in office when he was screaming at cnn and not giving them questions, that in fact it is more personal than that, that would make a difference, but the supposition of my piece is no, that is not why he did it. he did it to stick it to them because he does not like the tone of their coverage. david: congress will take a look at it, the house of representatives, the democrats, with adam schiff saying, i have long feared that he would use instruments to carry out his vendettas against the press. covers must find out whether donald trump did that by seeking to interfere in a merger or raising postal rates on amazon. if adam schiff subpoenas people
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to testify, can they exert executive privilege? harry: this is a bigger question and it is the big battles coming up. executive privilege on the congressional side is a tricky topic. and the short answer is, it is often a tossup. it is the right of congress to oversee versus the need for the executive to have candid discussions going forward. in the nixon case, the executive had to yield, executive privilege prevailed, but it was criminal oversight. here, congress has a checkered record, and moreover the battles take a long time. i think that we are in for a real slog on these sorts of issues, starting perhaps with a this one. david: finally, i want to bring up something coming across the wire. that is a report that there is a new lawsuit filed in state court in new york by michael cohen,
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against the trump organization, claiming that he has expended millions in fees and costs and he is asking for indemnity. is there a realistic opportunity that he could get that money? harry: we would need to know what the contract says. we know the trump organization famously stiffs people where it can. and often officers of an organization do get indemnity. i think he is talking about defending himself here. i think he is saying under his contract, that is why he is in new york state court, they should have paid my legal fees, as often happens for some officers. now, the clause probably would not apply to defense for criminal behavior. that would make it a long shot. but it really would come down to what are the terms of the contract and what did it provide. normally, you would not think it
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is a very promising lawsuit. david: we really appreciate your time today. it was very illuminating. the executive producer of the podcast, talking feds. this is bloomberg. ♪
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david: we are back with big a news on brexit. the eu has made a new offer to the u.k. on the irish backstop and emma will explain apparent emma: i will try -- explain it. emma: i will try. the pound has raised losses. it was down earlier against the dollar, erasing some of those losses today on the headline that the european union is said to have made a new offer to the ok in an attempt to break the brexit impasse. it has to do with the backstop, that is the deal on how to deal with the border between northern ireland and the republic of ireland.
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bolsteringoposal is the review system, removing the backstop altogether, but we understand it does not go as far as the u.k. would like. nevertheless, there is reaction in the pound and we will keep an eye on the spirit david: we had the -- on this. david: we had the attorney general who was there trying to get leverage on this. emma: we will keep monitoring this. david: the top executives from equifax and mary at facing questions today from senate lawmakers about that abridges that expose sensitive information of wonderful to 5 million americans. joining me is our finance reporter. tell us about what is going on today. jenny: today we saw the ceos of equifax and marriott go to the hill and face questioning about data breach notification laws and really digging into how the companies are storing the personal information of americans and what led to the
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breaches. david: clearly, they want to understand what went wrong, but can they do anything to fix it or is it more about letting you know afterwards? jenny: it is a little bit of both. some of the senators had background in software engineering, so they were asking about encrypting it, how long are you storing it, what about the patches you have to apply to keep the systems up and running, so the ceos were forced to get technical. on the other side, a lot about notifications, how to notify the consumers and how soon to notify the consumers. david: the ceo of equifax, you would assume that he is knowledgeable about these things, but what about the ceo of marriott? jenny: i was- impressed. they brought in the chief executive officer to talk about the technical stuff. but they really held their own.
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they brought in the fbi to investigate. david: so we will get proposal legislation out of this or no? jenny: both companies said that they would be willing to work with the committee on certain legislation, but it seems like there was a lot of disparate opinions in terms of how to go about that. so it is hard to say. david: thank you for being here. coming up, "commodities edge," previewing the big energy conference in houston next week. remember, you can interact with ndarts shown using gtv , a gets a funky analysis, and -- and catch up on key analysis. this is bloomberg. ♪
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