tv Bloomberg Markets Americas Bloomberg March 19, 2019 1:00pm-2:00pm EDT
bolsonaro today. the decision to grant brazil status as a major non-nato ally would divide the country differential access to american military equipment and technology. brazil would become the 18th nation to receive the designation. he was backed forces fighting islamic state in syria say they have captured a group of suspects involved in a january bombing that killed four americans in northern syria. they were killed in a suicide blast in january. the announcement came hours after the syrian democratic forces said it captured and islamic state encampment where militants surrendered. eight workers rushed to rescue victims clinging to trees and trapped on rooftops against rapidly rising waters today after a cyclone unleashed devastating flood this week in mozambique, zimbabwe, and malawi. more than 268 people are dead, hundreds missing, and thousands more at risk. we are talking about a
massive disaster right now, hundreds of thousands, millions potentially affected. we need all the majestic coastal port we can get. we need to have proper assessment first of what exactly is needed. as we have heard, it is by air that we can reach people and by water. a red cross spokesperson told people in geneva that the full impact is only going to emerge over coming days. here in the u.s., record flooding has want the midwest. no place has been a harder hit the nebraska. the missouri and other rivers across the state have reached record heights and are still rising. the state of emergency has been declared in more than 50 counties. almost 700 nebraskans have been forced from their homes. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is 1:00 p.m. in new
york, six :00 in london, 2:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories. u.s. stocks take a divot in the last three minutes as bloomberg news reports exclusively that some u.s. officials are concerned china will walk back trade pledges. china is also said to be excluding boeing's troubled 737 max 8 from its trade deal with the u.s. u.s. roadshow. the leader pitches the country to the u.s. hoping to expand trade and will back investors after foreign money fled the country last year. we will take you long to the joint news conference with president trump later in the hour.
first, let's get to that dipping u.s. stocks, halfway into the trading day. >> area are with the major averages at this point up .3%. .7%,e highs of closer to so some real gains. exclusive news to bloomberg that seeings. officials are the idea that china could walk back some trade deals. we will be looking at the s&p 500 momentarily. .6%,at the transport down on the railroads being cautious. at the highs for the s&p 500, up .7%. when that headline came out that some u.s. officials are said to see china walking back trade .1%, recovering a bit. well off the highs but the s&p 500 is up three days in a row. let's put this in perspective. investors are really waiting for
the fed decision tomorrow. this goes back to their last all-time high in september. fourth quarter volatility to the downside. this year's big move higher largely originated to the fed pivot. right now at levels last seen in october ahead of the declines. most of that fourth quarter volatility has been regained. investors waiting for that fed decision tomorrow. let's take a look at some strength in the auto sector. fiat chrysler up 4.5%. there continues to be rumors that fiat chrysler and future .ay come together -- pe back to our breaking news on the china trade talks. bloomberg news reported that some u.s. officials are concerned china will walk back some trade pledges, particularly as it relates to intellectual property.
joining us for reaction is the global investment strategist at mfs investment management. is in urgent that something gets done? if it is urgent, obviously it affects supply chains, affects the cost of goods available for sale, but ultimately, what a company does, how they do it, how they source input costs, their ability to charge what they are selling, that is ultimately profits, which drives stocks. vonnie: this story we are reporting on in the last three minutes having to do with some intellectual property allowances from china, which china may now not give, and that will affect biotech. we also had a story about boeing, china may not bother with those orders. now we're getting to which companies will be affected. does that affect how you advise? >> it impacts individual
companies, as you mentioned, but the market seems to be trading off of these nonlinear events. fed, central bank, china, etc. it effects individual companies but i don't know about the market in aggregate, like investors are discounting. vonnie: where are we in the market cycle? >> late. i think investors need to shift to the risks they are assuming to achieve those was earned. an element of complacency in market direction, attitude, how they are employing their investment outcomes. vonnie: so you are saying the market is wrong? >> sure. vonnie: what is the market getting wrong? the market should be more worried about the unsustainability of profit margins. how much of profits in the past seven years have been from difficult position of the balance sheet.
how much of it is fueled by crushing input costs that might not be sustainable, looking out over the next five years. vonnie: where are you recommending people be, it this shoe is going to drop, where would you take advantage? >> as an industry, we probably need to stop labeling asset classes and thinking in terms of growth, value, u.s., non-us. if a company has something sustainable, durable, if they had cash blows, they'll be fine. if a company does not have that, however you label them, they will not do well. vonnie: you went from a six income growth income team to becoming portfolio manager, so they are useful to some extent these asset that you say we should throw away. let's have a portfolio with no asset classes. what would you put in there? >> companies with durability,
with cross cycle endurance. to your point about china, companies with intellectual property. if you have something that is hard to duplicate, whether in retail, staples, infrastructure hardware, if you have something hard to copy and you can sustain or take price, companies with that ability to take price in an environment where growth is low, they are hard to come by. those assets will do well. vonnie: growth stocks. >> growth or value, something with cash flow durability. something that is not that dependent, gdp dependent. vonnie: can you see any of those today according to your evaluations? >> plenty. i think the value add for discretionary portfolios with selectivity will come less from over owning those assets with durability. it will come from the opposite, from avoidance of franchises
that are terminally value challenged. vonnie: so what should people buy? if they are avoiding these companies, where do they put that money, hold it in cash? formfactor, with a some pennies do something unique, differentiate. something that people can outsource easily. if something is a commodity, effectively, the price will go to zero and the asset will follow suit. sector,ss of the label, or the asset class, something that has durability. vonnie: what time horizon are you speaking of? forever? >> sure. vonnie: would you invest in china right now? >> selectively, yes. vonnie: what about the fed, are they going to move this year? what is the state of the u.s. economy? >> the consumer is strong, everything else is not. you are seeing that worldwide.
investors tend to overvalue recent data points, near-term information. maybe the fed hikes when more time this year, maybe they don't. my guess is they don't. but is that material to profit-making, to those with intellectual property, isn't material to those without? it doesn't matter what the fed does, those without ip, they will get devalued in the marketplace. vonnie: thanks to you, rob. a reminder to tune in tomorrow as bloomberg goes in depth on the fed's rate decision.
vonnie: this is "bloomberg markets." i'm vonnie quinn. we have some google headlines crossing. launching its game streaming service, called stadia. says we want to build a green platform accessible to all and send they have been working on streaming for two years. chipmakers have been higher all day because of this announcement from google. many stocks seeing a big advantage for chipmakers, amd, nvidia, which is in the middle of an effort to turn itself around. we want toceo says build a game platform for all. that platform will be called stadia. you can expect that to be a staple word in your everyday life. we will be speaking with the vice president of google on this later on. meantime, down just reporting rubber lighthizer and steven
mnuchin will be flying to beijing next week. ustr lighthizer and steven mnuchin will be flying to 25.ing next week, march official telling bloomberg they are concerned china is pushing back, possibly walking back some of its trade pledges. let's get to sarah mcgregor, who leads our economic policy coverage in washington. an exclusive here at bloomberg, this new headline that there seems to be a reaction from officials, lighthizer and mnuchin flying to beijing next week. is this a direct result of what officials are telling us? sarah: we did report earlier -- u.s.at china, officials are concerned china is walking back some of its pledges. we have heard from u.s. officials predominately this year that progress is being made in talks, we have seen trump twice delay an increase in tariffs on chinese goods, mostly
a good story for these talks. what we show today with this reporting is china is getting pushback and there is still a lot of room to go here for a deal to be reached. of course now we have reports that lighthizer and mnuchin may be heading to beijing next week for another round of face-to-face talks. that is really a face to face where some of these issues will have to be hashed out because there are still some pretty big differences. vonnie: what does this relate to? reporting,been intellectual property, but is it more than that, is it all of it? is this a punishment? sarah: intellectual property is at the core of u.s. grievances, the reason these tariffs were put in place in the first place. u.s. concern that china is stealing american companies intellectual properties, forcing them into these technology transfers in the country. that is the key demand of the trump administration, that china
reforms some of its policy, so there is equal footing for its companies in china. they really have to get a deal on this in order to get an overall deal signed by the two presidents. with lighthizer and mnuchin going over, that will be where the talks are centering. of course, we have heard there are other issues like data protection and regulations for pharmaceuticals. other related issues. but they all get to the heart of these ip concerns. posturing?this china is this punishment for the u.s. for not maybe going easier on china or offering more? what does china want? sarah: we have heard from our sources that some of china's easing in terms of conceding to u.s. demands is because they have not gotten full assurances from the trump administration that they will lift tariffs that were put in place. the main concern for china are these 10% tariffs on $200 billion worth of goods put in
place as retaliation to china's retaliation, if that makes sense. china wants those removed. tothe u.s. is not listening them, i think they will hold out on some of the u.s. demands. vonnie: sarah, candace go on indefinitely? we already had a push back from march to april, now june, and again?may come closer could this be like brexit, and the date is tbd? sarah: in terms of getting a partial deal, a deal that both sides can claim as a win, that needs to come in the next few weeks, potentially months. trump is looking ahead to his 2020 election campaign. he won the presidency on a pledge to get tough on china, and i think he will want to hold up an agreement with china to show people he cares and that he follows through on his commitments. -- a biglso want time
element of this deal is china increasing purchases of u.s. goods. i think he will want time for the trade deficit to start narrowing instead of expanding with china, to be able to say we have more soybeans being sold in china, perhaps more airplanes, manufacturing picking up from some of these increased purchases. vonnie: the news on boeing earlier, obviously you mentioned airlines impacting the stock. china does not rely on boeing. the chineseds, companies that have orders on, they will be fine. but it would be another twist of the knife, if china were to decide that it would not go ahead with any boeing orders. could that happen, will that be a next her move? sarah: airplanes are a sensitive topic. of valuethe top export from the u.s. to china last year.
production facilities in places like south carolina, which support trump. definitely a sore point in the talks right now, i would assume, as china is now reportedly we looking at whether it would include at least the 737 max 8 airplanes that have been granted -- grounded, involved in these crashes, reconsidering those purchases as part of the trade talks. boeingbuy different planes, but is re-looking at the 737 max 8. this is another wrinkle. vonnie: sarah mcgregor, thank you. markets are reversing some of those declines now following the bloomberg exclusive about china. now getting word from dow jones steven mnuchin and the ustr lighthizer will be traveling to beijing next week. time for the latest bloomberg flash, the biggest stories in the news. largeste world's aluminum producers is putting up
a cyber attack that has affected operations. norsk hydro says it is switching over to manual processes when possible. disney's 71 billion dollars takeover of 20 first century fox is reshaping one of the industry's most powerful dynasties. rupert murdoch's six children will split $12 billion of the proceeds from the deal, making each a billionaire. meanwhile, the elder murdoch fortune will shrink to just $7.3 billion. that is your bloomberg business flash. still ahead, elon musk has said his goal is to have the safest factories in the world. why that is not panning out for the electric car company. this is bloomberg. ♪
is up .6%. we got the announcement, stadia, a new game platform, streaming games, according to the google ceo. he said that there would be a and the controller streaming service has been working at google for two years. related stocks are jumping on the announcement. look at these semiconductor stocks. nvidia, micron among them. advanced micro devices at session highs. they were higher all day on more that this announcement would be coming out. a little bit of a twitch for the masses apparently. it will be available for everybody and it will not be blocked to children, it will be
more friendly games for a wider audience. ,he google ceo taking the stage speaking at the gaming developers event, saying they have been working on streaming for two years, the next iteration of game streaming. is the title of what the service is. i guess you get to look at stadiums. a new game controller as well. forthing like a wii everybody and presumably you could play with everyone in the world. it's been described as the netflix of gaming, so there may be as inscription. we are waiting for more details to come out. let's bring out alistair barr. , everye stock reaction stock except google, not a disappointment. gaming stocks are higher as well as chip stocks. >> probably a bit of a relief
for the gaming stocks. the goal of google here is to make its way into the market of the harder core gaming that usually takes place on xbox or playstation consoles. one of the things which has already come out which is interesting, when you are on , where people watch others play games, there is a button where you can click and start playing a videogame that is streaming live over the internet. so this is a technology that only a giant internet company like google or even facebook or amazon could offer. , butically, very difficult the opportunity here is really huge. billions of people watch youtube every day. if they start clicking that button, that will make google quite a significant player in the market. vonnie: it is like twitch for the masses, i guess, not in the
sense that you can play as well. who will this hurt? quite clear that this will help some, but gamestop is lower today. >> any gaming company that deals in hardware. that goesells games into gaming consoles, so that's a big one. anyone involved in making gaming consoles, that would be a bit of a concern. moon a classic google where they take something that is hardware and turning into a software product and delivered over the internet. vonnie: thank you for the update . we are talking about stadia. we will be looking at tesla in the next hour. this is bloomberg. ♪
focus today on a possible extra is noticed. authorities say the 37-year-old turkish suspect was released from jail this month and faces a week trial in july. prosecutors say the nature of monday's attack and a note found in the suspected getaway car suggests a possible terror motive. three people were killed and seven others wounded. petrochemical storage facility in houston is burning for a third day, and covering the city in a plume of the, black smoke. people more than 20 miles away have been able to smell the fuse but officials say there is no immediate health concerns. the tanks on fire store liquid used in the gasoline. officials say the fire will likely burn for two more days. european council president donald tusk today expressed strong and ongoing solidarity with ireland over the brexit border issue. that is according to a joint statement with the irish prime minister, after the two met today in dublin. task added the eu must see what basel's a merge in london before
this week's summit in brussels. meantime, theresa may is due to right by the end of wednesday to mr. tusk, setting out her proposal for the two-year process of negotiating a withdrawal under the eu's article 50 rules. the university of southern california says it may revoke admission or expel students who were allegedly linked to a federal bribery case. high-profile parents including business leaders and hollywood stars are accused of paying a company to help their children cheat on entrance tests and create fake athletic profiles to make them more appealing for admission to schools. of the 33 parents names and last week's indictment, more than half or applying to usc, and four of the school's current or former athletic department officials were charged in the case. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.
live from bloomberg world headquarters in new york, i'm shery ahn. amber: live in toronto, i'm amber kanwar. we are now joined by our bloomberg and bnn bloomberg audiences. here are the top stories we are following him around the world. in a few moments, president brazil president bolsonaro will deliver a joint news conference in the rose garden. we will take you there life. it is budget day in canada. the finance minister will unveil his fiscal plan amid an economic slowdown and a dip in the polls for trudeau's administration.
u.s. secretary of agriculture sonny perdue says china could triple its buying of u.s. farm products. we will have that interview. let's get started with a quick check on the major averages. to. stocks managing hold onto gains despite that report talking about u.s. officials right now seeing china backtrack on some of those trade concessions. u.s. trade representative office now seeking some details on china's revised offer for intellectual property. weer that report came out, saw the dow, s&p 500, really, u.s. stocks take a dive. biotech went negative, semiconductors there back a reportsspecially after saying that the u.s. and china are still discussing pharma issues. still, the s&p 500 at the highest level in five months. the dow gaining ground for a fifth consecutive session. all investors focused on this week's central bank decisions
which includes the fed announcement tomorrow, not to mention the boe also on thursday. the british pound the british pound fluctuating between gains and losses. right now stronger by .2%. 32 on those latest brexit headlines. amber: absolutely something we are watching. watching canadian oil prices. the rally has been nothing short of astonishing. oil prices are up 206 he 6% from the low. it got as low as $13 a barrel. now we are hovering below $50. it really speaks to the crisis that canada's economy was in at those low levels. province,alberta, the putting on big production cuts in order to alleviate this glut, something that we are used to seeing from the likes of opec. is success of that rally leading alberta to pull back a little bit on those production cuts.
we will watch that. of course, a key factor for the canadian budget, which will be delivered today. this could be the most consequential budget that the liberal government has put forth since they came to office. for really three reasons. one, the liberals are behind in the polls asked to a scandal that has embroiled its leadership with respect to how it done with corruption cases associated with a canadian company. also potential for housing stimulus. this coming out a time when canadian debt levels are at record highs, and moves just taken a year ago to cool the housing market. one thing we are unlikely to see , canadian corporations have been calling for, some kind of measure to catch the canadian corporate environment up to the united states, where the united states is running deficits and has been enacting corporate tax cuts.
that is something that a lot of canadian companies would like to see in the budget. as i mentioned, unlikely to get it this time around. get it lastdidn't year either, when people were expecting canada to reacting to the tax competitiveness. a key issue, especially when you see a slowing economy in canada, not only in canada but globally. you also see the boc turning increasingly cautious and dovish. amber: that's a good point, and the liberals have been content to run deficits during boom times, so considering we're entering a slow down, that could be even larger this time around. let's get more perspective on this. we are joined in studio in toronto by a partner at kfmg canada. i read what you were looking for. you are looking for competitiveness measures, things that can put canada back and give it an edge relative to the
u.s., after they enacted corporate tax cuts. unlikely to get it is time around. what is the consequence of that? >> the consequence is something that i don't like to spend a lot of time thinking about because as a partner at kpmg, in the trade practice, i talked to companies whose supply chains, where they are having goods manufactured and were their growth markets are, and without that competitive edge that canada needs, canada is at risk of having it simple he be bypassed from a supply chain perspective. we are basically from a corporate cusp perspective -- tax perspective on par with the u.s. we are a 35 million population million market there, why would anyone invest here? that becomes the fundamental baseline question. we need something to spur on our canadian entrepreneurs and business decision-makers to stay in canada. we also need to do something to spur on that foreign investment.
what i'm hoping to see, and i agree with you -- i would be pleasantly surprised and i would love to be wrong, but i don't think i will be. i don't know that we will see anything substantial in the budget relative to the corporate tax cut. what i am hoping is, moving forward in the months that follow this budget, that we see activities,get similar to the $100 million that the minister announced to help steel and aluminum companies. so far in the steel and aluminum alone, as of today, the canadian government has collected a billion dollars. on the assumption that 75% of those goods will be exported and eligible for drawback, that leaves about $250 million, which is not a lot of money, but something to inject into the canadian corporates. shery: do you get a sense now that we got the tax overhaul in
2017, have you gotten a sense of how that has impacted canada, because of the tax competitiveness in the u.s.? >> it is absolutely impacting the way people are thinking. i don't know that we have seen a lot of people pull triggers as of yet to finalize decisions come about what it has done -- i'm always talking about the proverbial white or, where they ipe the board clean and are redrawn what their supply chains and value chains need to look like. where things are made versus supply chains of moving things around. all of that now is being thrown into question because some of the logic in place or the past 30 years is suddenly called into question. shery: great talking to you, joy, kpmg canada trade and customs partner. some u.s. officials say they see china walking back trade offers. the dow jones saying ambassador lighthizer and secretary mnuchin
are heading back to beijing next week. there is more optimism on some fronts. agriculture secretary sonny perdue says china could triple its purchases of american farm goods as part of a trade deal between the nations. i spoke with him last night and asked about the outlook for chinese purchases. >> the easiest thing for china to promise in terms of the trade deficit. it's a product they need, they utilize, would be easy to reduce the trade deficit, which president trump has insisted on with relationship with china. they are really all over the board in the meat sector, serial sector, grain and oilseed, ddg's, ethanol. it is a broad array that would be good for agriculture if we could consummate the deal. shery: have they made promises on those purchases away from not just lloyd gaines, which we know they already purchase a lot of. .> numbers have been discussed
it is not appropriate to talk about that publicly because negotiations are still ongoing. but it would be the easiest way for china to help produce quickly the trade deficit with the u.s. shery: do you see china importing more rock i were cultural items such as grains or more processed items, as you mentioned, before pork? >> we hope both. we need the raw commodities. they have an aggressive and vibrant soybean processing facility there, so we think they would probably import raw soybeans. ddg's, thosenol, would be processed here. beef, poultry more than likely would be processed here as well. it would be a combination of both. shery: with the purchases come before a trade deal or as part of a package? >> i think part of a package. the vice premier made a commitment, a good-faith offer of 10 million more metric tons on top of the previous five and
five, which gets us to about two thirds of the way back from where we were in 2017. shery: when it comes to dollar value terms, we have seen china inchase $24 billion a year 2017. the only issue with that is for china, a really small part of their purchases. they import more than $120 billion a year. could we see those purchases topping those 2017 levels? >> we could, if we could come to a trade resolution. doubling or tripling the number over a period of 2, 5 years. shery: that was my interview with sonny perdue, u.s. agricultural secretary. are awaiting a live news conference between president trump and brazil president gyre bolsonaro at the white house. we will bring that to you live when it happens. this is bloomberg. ♪
shery: this is "bloomberg markets." i'm shery ahn in new york. amber: i'm amber kanwar in toronto. president trump and results president olson there are about to take questions in a joint press conference at the white house. kevin cirilli is with us from the white house. we have already heard from both of them, and this was really a meeting to establish a friendship that could perhaps inform a future free trade agreement. what have we learned so far about how brazil is progressing on that initiative? stylistically, these are
similar types of politicians on the world stage, but if you dig deeper into policy, president trump saying ahead of his meeting with the brazilian president, that he is very inclined to make a brazil a major non-nato ally, and that he would be supportive of brazil's bid for the oecd. the backdrop to all of this is china casting a shadow with u.s. china trade relations. as we heard in that interview with shery ahn, the agricultural secretary sonny perdue has said that perhaps the chinese are thinking about tripling their purchases of agricultural exports. that is directly impacted from brazil, by brazil. as have that are emerging one potential point of contention between these two world leaders. also for the president, he would like to see something done, and i lay in the region working with him on immigration. the bottom line, trade, national security, the top items on the agenda. brazil has really seen
the benefit of those u.s. china trade tensions. let me ask you, what has been said so far? we know the presidents have met, president trump really enjoying the company of president bolsonaro, talking about making brazil and official u.s. ally. what would that mean? kevin: it would allow the u.s. to have some type of friend in the region, particularly as there are tensions, as the president has put aside several nato allies, getting them to pay their fair share, he says, in the alliance. to have that kind of al i would send a signal against the chinese, particularly as the chinese have tried to enhance their business development in brazil. all of this bears repeating, china casting its shadow over the u.s. and brazilian relationship, head of these major talks, is really a show of support from the u.s. perspective that they will be able to work with a new brazilian leader as he gets
things moving in his direction. shery: kevin cirilli at the white house, thank you. for more on what to expect, let's bring in our chief content officer marty schenker, and our brazilian bureau chief. how important is this visit to the white house for president bolsonaro? we know that he has been a fan of president trump. his campaign really echoing president trump's own make america great again pain. >> exactly. they have very similar styles going from their heavy twitter use come into the messaging. bolsonaro has a very similar make brazil great again, but his son was wearing the hat in tc his first official visit, a lot of weight being put on this. he went to die those, kind of underwhelming, he had a short speech with no specifics of this is his chance to show this is a break from the left, and now we
are aligned with the u.s., and the u.s. is probably our biggest partner. amber: is this an exercise in trying to find common ground, trying to find ways to work together? to what extent will brazil find itself in a bind when it comes to huawei, as the u.s. urges brazil not to use their technology? as we mentioned, china is the biggest trading partner of brazil. >> that is something they will take up in the meeting but the larger narrative here is donald trump sees in bolsonaro a kindred spirit. the personal chemistry between the two of them is obviously very important to donald trump, even probably more important than policy, is the ability to come out and say he has found a new friend and ally in the region. that will supersede any policy issues that they have. shery: no wonder the president
also voiced support for brazil being a part of the oecd, given the fact that he is not a fan of international institutions. >> it is kind of ironic, right? there is a lot of anticipation at this press conference, and it will not just be about the dynamic between brazil and donald trump. i'm sure he will be asked questions about the mueller inquiry, his comments about john mccain, which he doubled down right before this meeting. it should be a very lively affair, but i do think cementing those relationships with brazil will be a relatively easy task. giuliana, when you look at how the market has responded, looking at the potential reforms coming down the pipe, the brazilian stock market at all-time highs. from a policy perspective, economic data suggesting there is uncertainty as to whether these policies are going to take hold. does that dial up the pressure
to get something deliverable out of these meetings between brazil and the united states? the main thing for brazil investors is the pension reform. the economy minister is there when bolsonaro in the u.s. and is giving this message that we know this is the focus, we know this is important, and we are pushing for it. it matters more than anything else that brazil does, even on the rest of their agenda. tension reform is everything the rally is hinging on. this reform that was presented in february which will save about a trillion in the next decade. you.: thank stick around. we are going to get you those live remarks with president trump and brazil president jair bolsonaro at the white house. we will bring that to you live when it happens. this is bloomberg. ♪
amber: this is bloomberg markets, i'm amber kanwar in toronto. shery: i'm shery ahn in new york. amber: president trump and brazilian president jair bolsonaro are about to take questions in a joint press conference at the white house. still what this is marty schenker and our sao paulo .ureau chief julia let's continue the conversation with you, marty. one of the things they were talking about when we initially heard comments between these two presidents -- i believe the press conference is just about to begin. .e will go there now live pres. trump: thank you very much
every -- thank you. today i'm very thrilled to welcome president bolsonaro of brazil for his first visit to the white house. president bolsonaro, i want to congratulate you again on your lastndous election victory october. it was an incredible feat and truly an incredible challenge, and the end result was something the whole world was talking about. i also know that we will have a fantastic working relationship. we have many views that are feelar, and we certainly very, very true to each other on trade. i think brazil's relationship with the united states because of our friendship is probably better than it's ever been, by
far. i also want to congratulate you on your recovery from a truly horrible ordeal, an incredible recovery. the people of your country know it. great bravery you have shown -- tremendous bravery. 42 centuries, the american and brazilian people have been united by shared values, including enduring love of faith and family and country. the united states was the first nation to recognize brazil's 1822, and in the second world war, brazil was the only south american country to contribute troops to the allied war effort. today, the united states and brazil are the two largest democracies and economies in the western hemisphere. we are in close agreement on the incredible opportunities and continuing challenges facing our region, and we have a truly historic chance to forge even
stronger ties between our two great nations. this afternoon, the president and i discussed many of our mutual priorities, including venezuela. brazil has been extorted very leader in supporting the venezuelan people's efforts to reclaim their liberty and democracy. brazil has helped so much. along with united states, brazil was one of the first nations to recognize venezuela's legitimate interim president juan guaido. i also want to express our profound gratitude to president bolsonaro and all the brazilian people for their efforts to provide humanitarian aid. we also thank you for allowing the united states to station extensive assistance and massive aid on the brazilian border, the brazilian people have been incredible. -- and havecould
been really happy to feed thousands and thousands of starving venezuelans. the venezuelan people have appreciated it. if the maduro forces would step aside, it could be a truly great and successful humanitarian project. we call on members of the venezuelan military to end their support for maduro, who is really nothing more than a cuban finally set their people free. the united states and brazil are also united in their support of the long-suffering of the people of cuba and nicaragua. the twilight hour of socialism ,as arrived in our hemisphere and hopefully, by the way, it is also arrived that twilight hour in our great country, which is
doing better than it's ever done economically. the last thing we want in the united states is socialism. borrow, --nt olson bolsonaro, i will tell you that we will be consulting and talking a lot, working on all of our both problems and assets, and we are making tremendous strides. we had a great meeting today. as i told president bolsonaro, i also intend to designate brazil , or major non-nato ally even possibly, if you start to a lot of peopleto talk but maybe a nato ally. which will advance cooperation between our countries. workingons are already together to protect our people from terrorism, transnational crime, and drugs and weapon trafficking.
also human trafficking which has become something that does come to the forefront of crime. horrible, horrible situation. we look forward to an even deeper partnership and working together. meetings, we discuss the strong economic ties between our nations grounded in the principles of fairness and reciprocity. my favorite word. reciprocity. and i arebolsonaro committed to reducing trade barriers, facilitating particularly energy infrastructure, agriculture, and technology. forpresident's vision freeing the private sector and opening the academy is that right way for brazil to achieve strong economic growth in our -- and are great companies are ready to go when the table is flat and free. to improve our