tv Bloomberg Markets European Close Bloomberg March 15, 2019 11:00am-12:00pm EDT
headquarters in new york, i am david westin. welcome to "balance of power." where the world of politics meets the world of business. president trump's promise to veto. and from london, the continuing struggle. from berlin, deutsche bank's effort ticket chancellor merkel merger.it a it looks like president trump said he would veto and he will have to? tweeting minutes after the senate rebuked him. to declare that the president's assertion of a national the along the border is not something they agree with. does have math on his side. after he will deploy his first the tell, it is unlikely that the votes are there to override that the dough. if you dig deeper into the republicans that voted against
the white house, it really does cross the ideological spectrum.ve people like senator collins from maine and kentucky senator rand paul who is more libertarian leading. as senator mitt romney put it, this is something that the president has disagreements within his own party. david: thank you, kevin. things are more complicated for the president on capitol hill than the first two years. in london on boeing. we know that boeing has been grounded around the world. have they seen the worst of it? : today, what we are focusing on is what is happening in open --here the ed an where the ethiopian airline black boxes are being analyzed. each takes about five hours to analyze and download data from. we are expecting to hear more data and information about what happened on the flights this
evening or tomorrow morning after a press conference in ethiopia. at the same time, we are seeing details come out in the press in reports indicating that the aircraft rose and fell hundreds of feet at a time, indicating this may actually be connected to the lion air crash in october, which is the main question that everyone is asking. whether this crash and the october crash are in any way linked. david: it raises a further question. if it is related, we don't know that, but if that is the case, why didn't they fix it the first time? ben: boeing has been working on a fix. they are talking about a software fix that will be due in april. the timing is not clear whether they potentially wrapped that up. i guess i would say if they could they would have rolled it out sooner.
is the issue worse than initially thought after the lion air crash? or is it more prominent or widespread, which is stoking some of the fears that led to the groundings across the world. nes havemaybe the pla gotten awfully complicated. now to check thomas in berlin. there is talks about a possible merger. they will ask angela merkel for coverage? chad: chancellor merkel is being chancellor merkel and holding back and not letting anyone know where she stands. this is making deutsche bank and commerzbank nervous. we hear that in formal tax has been advanced in there is no official announcement, that they're trying to get merkel lined up the hind closed doors to say that she would back job cuts they would need to take in order to make the merger makes sense. we hear from sources we are
looking at upwards of 30,000 job cuts. most would come in germany. these are germany's largest listed ranks. any hit to jobs would come here. labor leaders have come out on the record this week, the we have no official announcements from the bank, to say they oppose any merger. you have the finance ministry quietly pushing the deal, we hear from sources. merkel is the person in between. without her approval, this will not move forward. the german government owns 15% of the biggest shareholder in commerzbank. without her approval, they cannot move forward. david: does this merger makes sense if they can't lay off workers? isn't the idea to help both of the banks, which are struggling? chad: that is the issue. if they merge the banks and cannot do the layoffs, the merger does not make sense so they want the politicians,
before they make any official announcement, to say that they will back the bank sent to making the job cuts. we have the elections coming here. the european parliamentary elections in may. thene wants to be seen as one pushing job cuts just before a major election. david: that is chad thomas in berlin. now it's time to find out what is going on in the markets. abigail: we have a bullish tone on this friday. is down fractionally, .25%.e s&p 500 is up the real performances coming from the chip sector of 3.2%. mixed markets but leaning towards the bullish side. is not happening right now. some say this could be a tipping point. 500 using the at
volume at times function for the s&p 500, this is a showing at the open above what we are typically at at a 20 day moving 400%.e by above average volume as we have options and futures expiring at the same time on both indexes and individual stocks. it came at the open. now, volumes are lower than line., shown by the white at the end of the trade, it is expected to be significantly higher. half a billion shares higher at the end of the day. higher than average volumes on this triple witching friday. let's look at some of the big names, point movers. these are not the chips movers a .8%. a record high for the beauty company. -- 8.8%. a record high for the beauty company. their forecast is strong.
they are diversifying away from the apple supply will se. lots of bullish activity on this friday. david, the nasdaq on pays for its best week of the year. thank you, abigail doolittle. the president says he will veto, but is the rescinding of the declaration of an emergency exposed to divisions among republican senators? that is next. this is bloomberg. ♪
terror attack. at least 49 people were killed and dozens wounded in an attack on two mosques in the city of christchurch. one has been charged with murder and three other armed people were arrested, but it is not clear with their involvement was. one shooter live streamed the attack and posted a manifesto suggesting it was a racially motivated act of terror. un having second thoughts about denuclearization talks with the u.s. jets may beax 8 grounded in the u.s. through april until they get updated software according to members of congress briefed by aviation regulators. if he said wreckage from the ethiopian aircraft suggests that the airplane was configured to ground. that convince the u.s. to ground the. that germany's largest
lender is looking for help from angela merkel, reassurance they will get government backing for potential job cuts. global news, 24 hours a day on-air and on tic toc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. david: dangerous. that is what a senior senator from his own party called the president's attempt to go around congress to spend money on a wall that it explicitly refused to spend. >> never before has a president asked for funding, congress has not provided it, and the president has used the national emergencies act of 1976 to spend the money anyway. this declaration is a dangerous precedent. david: we welcome our political roundtable. the --uished lecturer at
and former executive director of the new york state democratic party. and republican strategist from burlington, vermont. there are other republican senators who tend to agree with lamar alexander that the president has gone one step too far. forget about border security. the clipher part of was "i thought democrats were not supporting president trump's reasonable request for more wall at the border after 25 years of a proven physical barrier." a constitutional question comes into play but he supports the itself. where do we get through this challenge of protecting our borders and our ports of entry and making sure there is a system in place where anybody coming into the country illegally has to pay the price at some point before they can stay permanently? question our border securities important. but you can't just brush over the constitutional issue to
quickly. doesn't it matter how you get there? you can't justify the means through the ins trying to be achieved. -- ends trying to be achieved. >> the president obama did it under daca, when you're going to circumvent the legislature in the polarization of the country, there has to be action. when congress is not getting the job done, who is going to do it? it is the president. a republican. i suspect if it was a democrat, that nancy would be letting it go. david: does this matter at all, the president is saying i veto it and there is not enough votes to overcome the veto? >> if there are no votes to override the veto, he gets to make a claim to his base that i am still in charge i still run the government. there is a danger that it will
get overturned. they will have to look at this carefully. it completely undermines his over the senate. they have been capitulating towards him for a long time. much to the dismay of probably moderates in the republican party. if it looks like they will return this -- if they overturn this, it is the senate getting their spine back. lamar alexander, i think he is right in a limited context. it is a constitutional question. i don't know if it is all tourism as much as they are looking down the line saying we don't want donald trump to use it goes the democrats could come around and use it. is a newly doctored phd and i want to congratulate him. where you worked in the supreme court is where this will end up. i have a masters come you have a phd, but you have a law degree. it will end up in the courts.
that will drag the thing on for quite a while. david: there enough, but i am host.e guest, i am just a the third option is it is unconstitutional so the court will not touch it with a 10 foot pole. to telling president we disagree with your national emergency. better over again is running for president. the washington post says we are is a democrat. when he first ran he was against obamacare. it is interesting. i understand the positions he is taking for someone who ran in texas.the question is, can he get through a democratic primary, a crowded democratic primary -- we have a school bus full of candidates running around the country, which shows the diversity of the party. i don't know why he has been the source he has been. if it were not for social media
i don't know if he would have caught on as well as he had. david: he is a media creation. nothing more. theas in el paso, i was in army and he was the mayor of el paso. he ran against ted cruz. how do you run against -- had he run against ted smith, it would never have been an issue. you can't be somebody with nobody -- beat somebody with nobody. you have to be careful making that point given is.donald trump a lot of people are saying he is a media creation. hisas his appearance on show that got him where he was. >> he is more of his own creation then beto. >> why aren't we talking about someone who won their election? that is important.
there are a lot of people that lost, like andrew gillum and stacey abrams. i would like to see their names being bandied about as well. isin new york state aoc calling for the return of 400,000 dollars from real estate developers to the democratic campaign committee. they are threatening to primary then. picksill happen when beto up any fire and aoc comes out against him? sean maloney and congresswoman beto.ave endorsed they are not going near gillibrand. some agree that nancy pelosi is doing one heckuva job. we have steve van in congratulating her. >> has the president met his match in nancy pelosi? how would you grade nancy pelosi? >> a 10 out of 10. she is a warhorse.
she has done from what she is trying to accomplish, i think she has done a great job. david: is she a 10? has she beaten the president? not say she has beaten him. he is president and she is still speaker of the house. he has the power of the white house. she is a great politician. i sat in the studio and had this conversation when she was running for speaker. she took impeachment off the table. why? or thead politics democrats. she is afraid of aoc and the far left even though she is from san francisco. david: she almost lost her job. me on record in a position of agreeing with steve bannon. she has held a party together in foresaw. her naysayers
that is the strength and power of a woman who has been there for a long time and knows how stuff works. >> she was the speaker and lost her job last time. david: thank you to our handle. -- our panel. thank you for being here. still ahead, the document everyone is waiting for in washington. robert mueller's report on his investigation. this is bloomberg. ♪
1999-2002 when they issued the final reports in the whitewater scandal. we don't know what is in the report, so let's not speculate. , ifothing comes of this president trump's campaign robertation, what will mueller have accomplished? was it worth it? robert: it is important for the that whetherognize or not robert mueller brings charges within the core of the , what we would refer to as russia collusion, you can say there has been a full and fair investigation. it was accomplished within 24 months, which is desirable and in the public interest.it is a notable contrast to other investigations that have lingered for years without much in the way of results once the
initial phase of the investigation has been concluded. the second thing is it has been remarkable over the span of the time that there have been little if any public pronouncements by bob mueller's office. that is a significant accomplishment in the current environment. in the cases he has already brought, there is validation there was a high level coordinated effort by the russian government to attempt to penetrate the u.s. electoral system. that is a significant thing on its own, whatever the future may bring, that is important to recognize. as to what the mueller report will actually indicate, i don't think there is much question that one way or another the congress will receive findings from the mueller investigation on the question of a number of things, including potential obstruction of justice and a
look at the campaign finance system. whether those amount to criminal charges or not, in its oversight capacity congress has a job to do. where they choose to do with that in the first instance will be in the hands of the house of representatives. david: putting aside what they come to in russia collusion, does the fbi, out of this stronger or weaker? is this upholding the rule of law and we have independence, or does it undermine it? rosenstein's decision in the opening months of the trump administration in light of what had happened to the former fbi director jim comey, and given the attorney general's recusal, was a judgment by him only a special counsel could credibly conduct the investigation. with the benefit of hindsight in thetory, i suspect future we will look back upon
that decision as a courageous and necessary decision. one which only someone of bob mueller's caliber could conduct over two years with little if any improper partisan political purpose to reach appropriate conclusions. we don't know what the conclusions are. i suspect they will fall short of what a lot of people's wrath ofons were, a indictments about campaign finances or things that get to the heart of the mandate regarding russia collusion and if there was an orchestrated endeavor, conspiracy, to collude with russia in terms of affecting the outcome of an election. that does not mean there were not significant events that did occur and should be of significant concern to most americans. most americans will say let's look at that, how can we prevent
that from happening in the future and how can we do better? david: there will be an interesting after action report for sure. robert: there seems to be a consensus among most people we should get to the finish line. david: we hope we are coming close to that. robert ray, former independent counsel. whatever headline about boeing. boeing shares have erased losses. an upgradeoll out for the 737 max 8 within 10 days. more next. this is bloomberg. ♪ this isn't just any moving day.
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: breaking news, boeing climbing higher on reports of a software fix for the max 8. abigail doolittle is here. abigail: we're looking at a turnaround for the stock.
thiser it was down 1.8%, after the tragic crash of the 737 max, but the headline is that it will roll out a software upgrade in 10 days, that according to an unidentified source, that is via a french news agency. david: you can see the stock is moving. it is a little puzzling, because they do not even have the results from the ethiopian crash, you wonder if this is left over from the lion air crash. abigail: then the question would come up if it is a rush job, if this could really work, but this is an unidentified source of this point. right now, the stocks are up. weekly performance, down 11%. david: ok, thank you so much. really good to have you reporting today. nato, the speaker of the house
nancy and mitch mcconnell may not agree on much, but the one thing they have agreed to did together is have the secretary-general address a joint session of congress. previous ranking member of the intelligence committee, now president of the woodrow wilson center for scholars coming to us from washington. jane, thank you for joining us. jane: thank you, david appeared david: you were in congress -- david. david: you are in congress, it is remarkable to have somebody come in like this almost in the face of the president. jane: the joint session of ress is aand an add platform that has been used well over many years. i remember when benjamin netanyahu came when he was invited by republicans only and the democrats were blind-sided. but this time it is being used well again.
what can i tell you, the united states stands behind the nato and article 5,, defense provision, and i heard the vice president say that recently, and good for mitch mcconnell joining with nancy pelosi to give the secretary-general stauffenberg the platform to talk about the relationships that we have. david: this would underscore what leaders have been saying, we stand behind nato. at the same time, do you have any concern that this is congress getting too far into foreign policy, traditionally we think about congress appropriating funds, they have oversight responsibility and can ask questions, but ultimately it is for the president to set foreign policy. jane: congress has the obligation to declare war. congress usually authorizes the use of military force, which has not been done since 2002. and presidents have declared war all over the place.
so i think that this is congress may be rightsizing itself again. it should have a major voice -- i disagree with your question, in setting foreign policy, and we are seeing other things that have happened, happening on a unified a basis. congress is now saying it does not authorize the use of u.s. force in yemen, as an example. that is a war where we are participating, which most people do not understand, which is had terrible effects on the civilian population and has probably caused -- it is not that we started it, but the saudis and iranians have been fighting over this and we are helping the saudis and taking that side in the fight. so the cholera epidemic, the drought and starvation is something that congress should worry about and they are trying to block this action. david: as you say, there is some
significant degree of bipartisanship on some of these issues. and we have a report now in the washington post about a convention at a resort in which the former vice president, dick cheney, actually in person went after the current vice president, mike pence, and what he reportedly said of w -- said was our allies will lack confidence in us and i worry that that approach is we have administration that looks more like barack obama than ronald reagan. this is one republican to another, will this have any effect? you know the way that this works. jane: it got a lot of press. this is an area, i mean come i apply dick cheney on this, on his comments. we need our friends and allies. i think that mike pence agrees, but i was in munich recently at the munich secured a conference, which 50 plus members of
congress attended, including speaker nancy pelosi, when pence said that europe, you need to pull out of the iran agreement, because that is what president donald trump wants you to do and i bring his greetings, america is back leading. that was not a speech that got raves. pence also went to a memorial service for john mccain, where i thought that he was touching and appropriate. u the u.s. needs -- but the u.s. needs friends, including in places like asia right now over this issue with north korea. and it seems to me that dick cheney has it right, we pull away from our friends, we pull out of trade agreements or environmental agreements at our peril. we should engage with the world against those parts of the world and enemies that are trying to hurt us. david: talk about north korea. now there are reports north korea is getting cold feet about
the negotiations with the u.s. on denuclearization. we have a statement out of the vice foreign minister saying the gangster like stance of the u.s. will put the u.s. in danger. "we do not have the intention to compromise or the desire to conduct these negotiations. the u.s. has a thrown away a golden opportunity." is this part of negotiations or is it really going south? jane: how do we know? president trump has not tweeted about this is the good news. escalating rhetoric does not achieve. anything. i think that we are in a kind of otty, withace, kn north korea because we've had poor moves, pulling out of the iran agreement. it was not a perfect agreement, but we had inspectors on the ground. this was a bad signal to north korea. i do not think they have ever intended to denuclearize.
i think kim wants respect on the world stage and he has achieved in that, at least up to this point, by his love letters to our president. but he is at risk now too. this rhetoric goes nowhere. if the resumes missile tests, i think that most of the world, assuming we work with most of the world, will condemn him again. i heard john bolton saying he was working with his counterpart in south korea this morning and a south korea wants reconciliation with north korea. i'm sure they do not want to north korean nukes or weapons focused on seoul, which is just downrange and can be reached by conventional weapons from the dmz. maybe we are quietly, that would be better, working with like-minded folks in the region to tamp this down before the escalating rhetoric ends up in escalating action, which i think
would be hugely dangerous to the whole region and to us. david: it is almost impossible to know what is going on in north korea, but we do hear some experts say there is a lot of pressure on kim because of the sanctions, that he really does not have that much time. at the same time, there have been sanctions on this country for a long time, they have gotten things we cannot even imagine, so do we believe that he is in fact feeling that pressure and he has the ability to make concessions? jane: i do not know the answer. as you pointed out, thousands of his people are in gulags, starvation has been a government policy. the food that has come in has fed the military. i imagine, because he has now the hisport with xi, border with china is a trading border and korea is getting some food, medicine and other
goods across the border. it is true that there is also a black market, articles have been written about the cars and riches in pyongyang to those folks rewarded by the kim family, which has ruled for 70 years. i do not know how to answer that. it may be a tactic. south korea does want borders, open borders with north korea, and maybe this is trying to work on south korea to be more pliant. but i think the u.s. should not bleak, this is the wrong time to blink, but i also think we should talk privately with allies and others about the next steps forward. and we will have a much better outcome if we do not tweet about this. david: thank you for being with us. jane harman is the director of the woodrow wilson center in washington. now first word news. in new zealand, a man
has been charged with murder in what authorities call a well-planned terror attack. 49 people were killed in the shooting in christchurch. part of the attack was live streamed on social media. four people were arrested, by the authorities -- but the authorities say only three of them are believed to have been involved. g theacturers are fuelin headwinds of slower growth. factory output fell through -- for a second straight month. mixed results across market groups. consumer goods and construction supplies fell, business applies increased. and president trump is prepared to issue his first veto. the senate joined the house and blocking his declaration of a national emergency, but there are not enough votes in either house to override a presidential veto, still it is an embarrassing show of disunity among republicans for the
president. 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 kailey leinz. this is bloomberg. david? david: thank you. coming up, tech firms are back in the news today, raising new questions about whether and how they should be regulated in the wake of facebook's streaming live massacre overnight in two mosques in new zealand. we speak with tom wheeler about it next. this is bloomberg. ♪
their viewpoint on facebook, until it was taken down, raising once again whether they can be some form of -- there can be so form of regulation on technology into social media. we welcome now tom wheeler, , former fcc chairman. he is a senior research fellow now at harvard and the author of a forthcoming book on the history of our future. he comes to us from washington and is our conversation in chief today. thank you for being with us. sadly, it could not be more timely. your book is going to be very timely. from your perspective, you have worked in the private sector and in government, what is a sensible way to approach this series of problems involving tech and social media? tom: it is a tragedy what happened in new zealand, and how social media becomes a vehicle
to spread it. i think what we need to come to grips with is clearly there are first amendment rights and there are rights of speakers, but we need to figure out just where do you draw the line, what is the equivalent to shouting fire in a crowded theater in the internet age. and i think that goes back to one of the themes i develop from my book, which is that when we moved from agrarian mercantilism thendustrial capitalism in middle of the 19th century, all of the old rules did not work anymore. and so in the late 19th and early 20th century, we had to establish the rules, we being the government and the people, had to establish rules that reflected the new realities. so the things we take for
granted, antitrust, consumer protection, worker protection, this sort of thing that got put in place to establish rules for industrial capitalism. now, we are in the era of internet capitalism. and some of these old rules do not work anymore. so what we need is a healthy debate, dialogue and the decisions on the establishment of new rules that reflect our new realities. and one of those will be what happens in an environment -- in a news environment, if you will, where there were no editors exercising editorial judgment. what do we substitute for that, how do we do with that -- deal with that? david: what is the model? i did not know. we used to have two models, one
was broadcasters and publishers, responsible for what is put on the airwaves and in magazines. and you have a telephone company, they were not responsible if two people decided to use a private telephone to do something illegal. do either of those apply to facebook or twitter, or do we have to have another model? thus far, as i understand it, the tech companies can say we are a telephone company, we have no responsibility for what goes on our sites. tom: we have to start with the assumption that despite the fact that facebook says we are a tech company, they are making editorial decisions the same way that the new york times makes these decisions. and i also believe that if we for-- i have proposed, instance, what i call public interest api's, application programming interfaces, how software talks to software. the black box that is the
algorithm that makes the editorial decisions for facebook is fed by data coming in and sends data coming out, but we do not know what is in either one of them. if there was the ability for third parties to interface with that data, to understand what is coming in and what is going out, then you create the potential for some kind of independent oversight review, or at least understanding what is going on. david: how much of the problem is what these companies are doing, and how much of it is their size? elizabeth warren is coming forward with a serious proposal to say the problem is the size and scope of the companies, we have to break them up, keep them smaller. sort of a glass single approach where companies like facebook and amazon, or google, have to separate out there basic
platform from their advertising activities and social activities, does that make sense to you? tom: first of all, clearly we need to have policies that promote competition. and there are three ways to do that. one, you can break up the companies, like what has been proposed, but the difficulty is that lawsuit takes six to 10 years. need to, you can -- we have better antitrust review of mergers, so we do not get deeper into this hole. third, we need to have regulation that is pro-competition in its nature. specifically with regard to the big tech companies, though, i think there is a question between breakup and breakout. and what do i mean by that? these companies
get in the marketplace comes from the fact they take our personal information and if they turn into their corporate assets and hoard it. then turn around and they allow rents.to it for monopoly that asset is the currency of the 21st century. we need to provide interconnection into those as sets. think for a minute. mark zuckerberg in the early days of facebook took on myspace goodeat them in a old-fashioned my product is better competition. if you or i today said, i have a new facebook, let's bring it out, there is no way we could compete because facebook as 2.2 5 billion subscribers and all of the data that relates to them,
yet it is that data that they turn around and monetize. and a new competitor has no chance to get that hoard of data. so how do we provide interconnection for competitors into that data, so that we can have innovation, so we can have marketplace competition, and so and peoplehoices will begin to make decisions in the process. david: you know the federal government well. who within the federal government understands this, has the expertise to do something? there is frustration on capitol hill, it is pretty complicated. it is new for a lot of us. where does that reside? do we have the expertise to sort these difficult, medical legal questions? -- technical legal questions? tom: we have a representative government and like their constituents our representatives
are just beginning to come up to speed on what the implications are and what the problems are. and the tech companies have been selling, for years, the line that this is magic. do not touch it, you may break the magic. and they have been making the rules. i think we have learned now that there is some significant downside to this magic. and to allowing these companies to make their own rules. and somebody needs to step in. it is what we have done historically. go back to the book for a second, what we have always done in times of technological revolution is the pioneers make the rules, until those rules begin to infringe on the rights of the public and the public interest, and then the
government steps up. i think that is the point we are at now. the question as to whether the ftc or a new digital agency -- we need to work her way through that, but we should be looking in terms of saying, how do we plan for the reality that we have today, not the reality that existed, for instance in my case with the fcc in at a 34? -- in 1934? david: it is really good to have you on. tom wheeler. this is bloomberg. ♪
they are far from the first two to bridge the gap between tinseltown and our government. jerry brown dated singer linda ronstadt, but it turned out that they marched to the beat of a different drummer. but kerry had a romance with debra winger, after meeting her on the set of "terms of endearment," but their relationship may not before going down the aisle. time will tell if cory booker makes his way to the white house, and resume dawson ends up with a new leading role as first lady. sign up for our newsletter on bloomberg politics.com. the latest on global politics. live from new york, this is bloomberg. ♪
european trading day. from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the "european close." let's get a check of the markets. in europe, a topsy-turvy day with more brexit news and economic data with the ftse 100 ending the session up 7/10 of 1%. cac 40 is up 8/10 of 1%. dax up 6/10 of 1%. in the u.s., the treasuries saw a bid today after economic data, the 10 year around the 2.60 mark. and the s&p 500 is up .5%. and broadcom up 10% after great earnings quarter. some problems on the horizon in terms of demand for --. guy: n m