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tv   Bloomberg Markets Balance of Power  Bloomberg  June 14, 2019 12:00pm-1:00pm EDT

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david westin. welcome to "balance of power" where the world politics meets the world of business. on the breed, kevin cirilli from washington on the u.s. response to the tanker attacks in the gulf of oman and michael mckee on the state of the global economy. we heard from the president himself, not just mike pompeo. it is the iranians. what does that mean for the further u.s. response? kevin: potential additional sanctions. mike pompeo and president trump reiterating the u.s. believes iran is responsible for the mining of those tankers in the persian gulf. the responses been swift from iran, they have denied their involvement. from a broader standpoint you are seeing the geopolitics play out in real time, precisely as the threat of additional sanctions to further isolate iran from the international community continues to intensify. several sources were experts have told me that with regards to iran, they are trying to show
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that the -- that by doing this type of attacking, they can have an economic impact on other economies around the world and trying to get them to do business with iran despite the administration sanctions. from the administration standpoint, they are looking to s in order toranian bring them to the negotiating table to withdraw the nuclear ambition. want: does the white house or need multilateral support from other countries or is willing to go in alone? kevin: the administration and secretary pompeo has said they're are not willing to take any option off the table. they also said they would encourage a broader coalition if possible. david: changes at the white house. it appears sarah sanders will be out at the end of the month.
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some people want kellyanne conway out as well. what is going on? kevin: they said kellyanne conway has violated the hatch act, which makes it illegal for anyone in the west wing to talk openly about politics or political elections while they are serving in office. she has made several political statements. president trump said in a fox no plansrview he has to fire kellyanne conway, the special counsel to the president , and she said she has no plans to go anywhere. is it about the hatch act was enacted into law in 1939. i do not believe there was twitter back then. david: powerful point. thanks to kevin cirilli in washington. now let's turn to michael mckee in new york. we have economic data that could have far-reaching effects. what about china. retail sales numbers and production numbers as well as investment numbers. kevin: and set the markets -- michael: its of the markets off on the wrong foot, the chinese
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industrial production the worst in 17 years. again of 5%. for the u.s. though it terrific, but for the chinese it is the lowest since 2002 and missed estimates of 5.4%. it shows the trade war having an effect on china. david: is a having effect on consumers? chinese sales were up and u.s. numbers were encouraging? michael: the u.s. numbers were extraordinary. , butain in retail sales the prior month's numbers, april revised higher from a contraction of .2% to a gain of .3%. that suggests the consumers much stronger than we thought. we saw the atlanta gdp now numbers come out almost all the way up to 2%. we do seem to have stronger growth in this quarter than we thought. david: that sounds good. and then my on the moderate university of michigan had to come out with its own survey.
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michael: we saw slippage in the expectation numbers for consumer sentiment. the number that caught wall street's attention was consumer expectation for inflation, googling five to 10 years now falls to 2.2%. that is the lowest number ever recorded in the survey. the fed has been saying we're watching inflation expectations, we do not want them to become on more, this is suggest -- unmoored. this suggests that is what is starting to happen. we have the fed coming up next week. the fed will say something about how the economy is in a more precarious position and there watching it closely. they will take patience out of the statement that no cut yet. david: thank you so much to michael mckee. now let's find on what is going on the markets. we turn to emma chandra. emma: we are looking at the majors in the u.s. in the red. .6% for the nasdaq as we are
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seeing tech get hit badly. we are off the lows and off the highs. it has been a choppy session so far this friday in the u.s.. there are catalysts. it seems the economy in the u.s. is too healthy for investors. those gains in retail sales adding a data point for potential fed rate cuts. the trade war is back in focus after broadcom lowers its sales estimates for the year and squarely called up u.s. china trade relations and the huawei ban. we are seeing chips fall. this is the stocks -- the sox philadelphia semiconductor index . if we take a look at the movers in that sector, we are seeing big losses. apple down 1%. that is because it is broadcom's biggest client, responsible for 29% of broadcom's revenue. look at corvo and sky works, falling 3% or more.
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they are big huawei suppliers. hope we would see resurgence in the chipmakers in the second half of the year. the news we are getting from broadcom throwing cold water on that. we are seeing some stocks surge. , the onlineat chewy pet retailer who went public. trading at $74 and priced at $22 last night. a big day for chewy. i spoke to the ceo earlier and they said they plan to use it on expanding the tech platform and moving into services, saying the pet parent customer is strong and is a customer that will survive and spend throughout economic ups and downs. they are positive on the company. analysts getting positive on them too. if we take a look at other ipos, there is a lot of them
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performing well. field wening a crowded take a look at beyond meat of 500% since it went public. zoom and crown strike putting in big gains. some of the newer companies are doing well. david: pretty well, indeed. coming up, u.s. tech stocks are hit again in the fallout from sanctions against huawei. we speak with senator chris van hollen of maryland about was at stake for national security. that is next and this is bloomberg. ♪
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david: this is "balance" on bloomberg television. we turn terrific a group debt for bloomberg first word news. said iran wasrump responsible for the attacks on oil tankers near the persian gulf this week. keep out that the key shipping lane would not be closed. the president told fox news iran didn't.nd you know they officials say an iranian patrol boat was in removing an unexploded mine from one of the tankers -- iran did it and you know they did it. iran has denied the allegation. the cost of storing nuclear --te in the u.s. will exceed private companies to handle the
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waste because it has no place of its own to keep it. more nuclear plants have been shutting down because they are unable to compete with cheaper natural gas and renewables. radioactive material can remain deadly for several thousand years. the government may pause work on the controversial extradition bill that led to violent protests at. according to the south china morning post, a number of options are being considered to diffuse the situation. the paper reports the members of the executive council believe the government should still fast track the measure. wille u k, boris johnson join a tv debate with rival candidates for prime minister this tuesday. johnson ran up a big lead in the first round of voting. in the meantime, health secretary matt hancock withdrew from the race to become the next prime minister. he is not saying who he will support. rivals are holding talks about
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joining forces to stop johnson from winning. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. david: thanks so much. united states plan on doing business with huawei is having a fax beyond the chinese telecom giant itself, with broadcom saying revenue will be lower than expected going forward, taking the stock of broadcom and other companies down. our next guest says it is worth it given the stakes. we welcome senator chris van hollen who comes to us from silver spring, maryland. good to have you back with us. sen. van hollen: good to be with you. david: give us your sense of why this is so critically important. this is starting to bite. give us a sense of why this is important for our national security. sen. van hollen: let me be clear . i disagree with much of the trump administration's trade and tariff policy. i thought it was a big mistake
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to slap on section 232 sanctions , national security sanctions, tariffs on canada and our allies. when it comes to the trump administration's approach to huawei, specifically putting on them on the entities list and saying u.s. suppliers should not be strengthening huawei, i support that decision because i do think this is a critical national security issue. in all of my conversations with the intelligence community, they have made clear that if huawei is allowed to dominate the five g infrastructure of the future around the world, that will compromise our national security interests and those of our allies. this is an appropriate measure the administration is taking and i hope they will stick with it. i worry about the administration trading up important national security issues for things like more soybean sales to china. that does worry me. we need to be clear -- national
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security is about protecting our country and that of our allies. we should not be trading that off for something else. david: let's stay on the national security issue that i know is so important to all of us and you've been very outspoken. how far does it go? how far beyond huawei does it go? we now have suggestions we should look twice at buying transportation vehicles from china because they have microchips embedded in them. we had rick scott, the republican senator from florida on yesterday. he said it is dangerous for u.s. companies to do business with china at all. ott: i do not think any american should buy one chinese product. we should not do any business with china. we should not buy anything from china. they are our archenemy. david: where is the line between huawei and all companies on the other?
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where's that line drawn properly? sen. van hollen: i respectfully disagree with senator scott. there is big difference between huawei and a chinese toy manufacturer. the line needs to be drawn where it is the assessment of the intelligence community with input from experts around the country and around the world that it would put the united states and our allies at risk if we were to do business and help support a particular chinese ,echnology, in this case 5g which was of course one of the communication technologies of the future and to the extent china dominates the globe and is allowed to set the standard and write the rules for that, the risk is that because huawei, like any company in china, can be commandeered by the government of china, what you
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are ultimately dealing with is the chinese government. i know one way likes to say -- i ei likes to say it is an independent company, but we all know the reality. at any moment the government of china can take over huawei and dictate the terms to huawei and they would likely do that in a way that undermines our national security interests. i would not -- i am not saying do not do any trade with china. i am talking about a very specific example in the realm of 5g. youmentioned -- david: mentioned 5g and his critical importance in the internet of things. there was an official from huawei we did an interview with, and he warned if we cut them off, we may impair our own ability for 5g. he said huawei will invest heavily in countries where we are welcome.
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restricting access to 5g will have huge cost. companies around the world will have to address those costs against the supposed arrest of national security. do we give up something in our own ability to compete and innovate by cutting off huawei? sen. van hollen: i do not think so. there are other suppliers of this 5g infrastructure, including ericsson, nokia, other countries that we do not have adversarial relationships with and where the government does not step in and take over a private company when it wants to, for its own purposes. it is true that the united intes needs to invest more the aspect of 5g infrastructure. .here are lots of pieces to 5g we have companies like qualcomm that are supplying lots of components and our cutting-edge of 5g.
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what we are talking about is the transmission from the radio tower to your cell phone. huawei where china and have undercut others in the market through lowball pricing over a period of time. the united states does need to draw a lesson from this, which is we need to make sure we do not fall behind in any other cutting-edge technology of the future, whether it is ai, driverless cars, clean energy technology, there is a lesson here for us in that we fell behind in this particular aspect of 5g technology. suppliers like ericsson of the same part of the infrastructure that huawei currently provides. david: one step beyond huawei
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and national security, you have a bill you've composed with your republican colleague senator kennedy that would protect u.s. investors in chinese companies. explain what the problem is and why it is important that be included in the trade negotiation's. sen. van hollen: this is straightforward. we're just asking that every company, regardless of country, comply with the standards we have in place to protect andstors in u.s. exchanges protect public confidence in our system. theently, we have requirement that companies work with us to make sure the public companies accounting oversight board has an opportunity to review the accounting procedures that companies listed on these exchanges. you go back to 2011. there were a lot of chinese companies that did deals with
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shale u.s. companies and investors lost about $40 billion. it turned out these companies were fraudulent companies. --ry country in the world companies from every country in the world have come into compliance with u.s. accounting standards for getting listed on our exchanges. except one -- china. the bill senator kennedy and i introduced requires every country to come into compliance. we have also written to robert he makesr to ensure this part of the negotiations going forward, including the upcoming g20 talks. david: thank you so much for your time. senator chris van hollen of maryland. we are learning today that millionrump made $4 from her investment in her father's washington post tell last year. made $1 million from
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her apparel, jewelry, and merchandise. trump and her husband jared kushner earned between $28.8 million and 100 million dollars in outside income. they are both unpaid senior advisers to the president. still ahead, broadcom's troubles make it our stock of the hour. that is next. this is bloomberg. ♪
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david: you're watching "balance of power." jim china broadcom is our stock of the hour. shares are having their worst day since january. the company is caught in the crosshairs of the trade war. broadcom cut their shares forecast by $2 billion. from $24.5 billion for the full
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year to $22 billion. broadcom having one of the widest reaches of any of the chipmakers and that has allowed the company to be successful. when you look at a trade war situation between the u.s. and china, half of broadcom's revenue went to china last year. also huawei now blacklisted by the u.s. as one of their biggest clients, accounting for $900 million of revenue each year. impacts also in indirect . customers say they are scaling back because the ongoing u.s. china trade wars will hurt the economy and that is what they are concerned about. you have the immediate impact and then the other impact and the fact that it could cause some sort of economic slowdown. when you take a look at the sox today, that is pretty bad, brought but broadcom has been under -- but broadcom has been underperforming all year.
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compare that to the philadelphia semiconductor index, which is up 17%. david: your answer points out a possible distinction, selling to china or huawei or discouraging capital investment overall, which would take the sector down. one of the things happening is all of the chipmakers are down. it is not just broadcom. emma: all the chipmakers are falling. you see the philadelphia semiconductor index have a deep loss between 2% and 3%. sky works and corvo all down. they are also suppliers of wall way. -- of huawei. we are also seeing apple falling. wall street is starting get in on the action when it comes to what analysts are doing. david: the assumption is the world is going digital. that means that is good for tech. are we questioning that assumption? could trade and a tech war with china change that? emma: it is something we've been
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grappling with because we see tech lead the stock market when we see the stock market go up. it also leads when we go down. it seems to be the sector that is the leading indicator both ways and one of those where until we have some sort of resolution, it is difficult to take a longer-term view, certainly when you come back to broadcom, we are seeing wall street analysts taking a different view. a chart showing them cutting their price targets. david: thank you so much to emma chandra. the democrats have decided it will appear in the first debate of the presidential season. how will it work? we asked our political panel. that is coming up next. this is bloomberg. ♪ hey! i'm bill slowsky jr.,
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i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore...
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excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. ♪ david: this is balance of power. i am david westin. we go now for first word news. >> president trump criticized
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federal reserve chairman powell in an interview with abc that is aired today. the president blame is powell for raising rates. he says he felt the u.s. economy would have grown more had the rates not been hiked so much. he is my pic and i disagree with him entirely is the quote. life isssange says his at stake of extradition to the u.s. he spoke to a london court today by video link. he has been charged by endangering the national security. his lawyer calls the case an assault on journalistic rights and free speech. a warning from the international energy agency. it says the oil supply will slump demand next year and put more pressure on opec. the forecast is that there will be a surge of output next to u. s. shale. who publiclyre
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promised hundreds of millions in funding to rebuild notre dame has not yet paid a penny towards restoration. that is according to church and business officials at the french national monument. instead, it is been mainly american citizens that have flooded the bill. u.s. donors have paid a salary ers,as many as 150 work and will soon hand over $4 million to the cathedral's reconstruction. global news, 24 hours a day on air and @tiktoc on twitter powered by more than 2,700 journalists and analysts in over 120 countries. this is bloomberg. david: thank you. the democratic national committee has chosen 20 of its 23 presidential candidates to appear and the first televised debate this season. one of those who did not make
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the cut was governor steve bullock of montana who told bloomberg earlier that he need to focus on the needs of montana. >> in some ways, i am disadvantage. i only got into this two weeks ago because i had a job to do. i had to get medicaid expansion preauthorized -- it reauthorized. hopefully we will get there by the number of donors, but even if not, this conversation is going to go along past this next month. david: welcome now our political panel of lewis miranda, coming to us from washington, and mark lauder. coming to us from just across the river, and mark and arlington, virginia. i want to start with you, as we listened to governor bullock -- is this process aligned and a way to come up with the best candidate to run against president trump?
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>> i think the process is fine. and as he said, he just got into the race a couple of weeks ago and he may actually benefit. onle the debate takes place nbc and affiliates, he may be able to go to the other networks and do some sort of town hall or meeting that get some attention. it is not a complete loss, and it is the challenge of having so many candidates. frankly, the 20 candidates on stage will have a hard time distinguishing themselves and most of the attention will fall on the three or four frontrunners, and the other candidates will struggle to get a word or two in. it will be a challenge no matter what. question, whost gets to appear, and who appears with whom? the new york times is reporting will beala harris joining vice president biden and bernie sanders. how are they deciding? >> that is part of the challenge. no matter what they decide, people will say it is not fair.
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part of the promise was that they would not do what happened in the past cycle where it was on the republican side, they had the adult table and the kids table which meant to the front runner, big candidates on one debate, and the lesser-known candidates on the other. this was supposed to be a mixed affair. if it is going to be the three big candidates and one debate, it makes it challenging. it is a deep field. elizabeth warren and some of the other candidates in the other debate, both of them will carry a lot of weight. but yes, that will be a challenge and no matter what the decision, somebody will complain. david: mark, we heard it will be hard to break out of the pack. president trump had to do that. how did he manage to do that? spoke tohink he just the people and resonated in a way that the other candidates did not and that is going to be a challenge for any of the candidates on the others because
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the one thing, regardless of the arguments and discussions about the process and how it unfolds with their debates, the ultimate problem is they are all going to have to be endorsing ideas the vast majority of mainstream republicans -- americans do not want. healthent takeover of care, eliminating health care advantage plans, and paying people who do not want to work -- those are the positions being endorsed by most of the main candidates of the democratic party field. we will see how that plays out when you get to a general election against president trump. david: that is a characterization, i am not sure that vice president biden would agree. what do you do in the meantime? there will be a lot of lights shown on the democrats. what do you do for president trump to get him in the position that he is as strong as possible? doingthe one thing we are is building out and a normal sleep highly expert field. we have one of the most advanced analytics and data systems
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available. and 2015, and it becomes more important heading into 2020. the republican national committee, the republican team has record of fundraising, while the democratic party is still taking out loans. ultimately, the president is still going to go out there and talk to the american people not just as a president, but he is with to be in florida 20,000 people inside, 80,000 people have requested tickets, and he continued to show that he can packa -- pack a house. marc: luis, i think that has a point. the numbers on the individual having a lot of money, but the dnc is not generating a lot of money while rnc is building up. will you be a disadvantage because you do not have the infrastructure built? luis: there is definitely a
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challenge when you have this many candidates drawing the money away, you also have a law of the money that going to outside groups. the dnc does have a role to play heavy lifting of building early organization in a lot of states that they need to translate into raising money. at some point, the candidates will have to step in and do more to make sure the party itself is stronger and building up the resources. at the end of the day, the main campaign, the one that wins is going to have enough money and going to move enough money into the party to have a good, competitive election. so that is not a worry. we see that in the strategy of the candidates. they are spending a lot on digital advertising. the bigger issue is you will see more money moving away from television and more into smarter, strategic fundraising and outreach to people via
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social platforms and the phones they are holding in their hands. that will help put them in a good position. david: marc, you said ultimately the candidate that wins is the one that is speaking to the american people and the things they are concerned about. if you polled the american people, americans are concerned about their pocketbook, the economy, jobs, things like that. we are in good shape in this country, but at the same time, there are polls up, and there was a poll that came out next week that president trump is not getting the credit for that, and it makes sense because he does not talk about that. he talks about the chinese and the mexicans and other issues. does he have a problem getting the credit that he perhaps deserves for the economy? marc: no, i do not think so. you can go back and look through history that the publicly of the economy often trails what the financial data actually says. i can go back in 1983, president
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reagan was about nine points lower in his approval rating than president trump at a similar points, and president reagan went on to win 49 of 50 states because people were feeling confident in the recovery. we are seeing a record high number of people in their own financial security, they feel they are better off now than three years ago. that is going to continue to grow. we make the selection of choice, because it is going to be a choice of do you want to continue these policies or do you want to go back to the policies that the democrats are going to offer -- high taxes, high regulation, things that stifle the job market, the answer will be clear for most. david: luis, i wonder about that choice and making sure the choices based on the facts. we saw in the last election, various things in social media. beyond the russians and going forward, how do the democrats or
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republicans protect their social media against things like deep fakes for example that people are very concerned about, and protecting so that the facts are accurate? luis: there is going to be an incredible amount of disinformation both from domestic and international sources. it is a shame that republicans have lined up in the senate against trying to protect the integrity of the elections, so it is going to be a challenge. ultimately, democrats will have to be clear about few issues. you have to condense it and keep it focused on things like the 2018 midterms, where there was a good focus on how republicans and president trump wanted to take away peoples' pre-existing condition protections. it to whatndense care about, you have an issue where democrats can really focus in and show people that what the stakes are.
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ormation is going to fly and it is going to be a concerted effort on the part of the campaigns to hold the media accountable to help clarify those things that are wrong that are getting out of hand. it is going to be a challenge. i do not think anyone has cracked what that is. tax cuts went to 90% of americans and that is the democrats trying to take peoples private. david: i'm going to let you have that last word because otherwise, we will be debating all night long. the battle lines have been drawn and they should be. thank you to both of you. lotter,anda and marc thank you. hong kong, and, north korea. geopolitics at the top of the news agenda, and we talked to a former u.n. ambassador. this is bloomberg. ♪
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♪ david: you are watching balance of power. i am david westin. bill richardson has dealt with some of the most difficult geopolitical issues of our day. as ambassador of the united nations, secretary of energy, and governor of new mexico. we welcome governor richardson now to bloomberg coming to us from boston for today's conversation in chief. thank you for joining us. >> thank you, david. david: let's start with the hottest issue today and that is iran and what went on over there and the gulf of oman. we now have united states government saying specifically that it is iran's responsibility and they did it, there is video. what comes next?
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think what wen: i have to do with our allies, we have to get international support to cool things down. i think first of all, get support of the security council for the free passage of the ships. an option may be a military strait through the of hormuz, going and supporting these commercial ships. i hope we do not get to that. but at the same time, the administration has been pressuring iran with sanctions. i want to see some diplomacy. i want to see some discussions of not just cooling things down, but legitimately trying to get iran to stop it support of terrorism, attacks on israel. writing the president is partially correct, that -- i think the president is partially correct, that iran is responsible, but it could be
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different factions of the iranian government. that wantsome in iran diplomacy, but the military side wants a more aggressive posture, and they may have staged these attacks on their own. david: give me some help on this. we have sanctions on iran right now, that is part of the pressure. we say we want to go to the diplomatic table and they say we will not negotiate with you -- who goes first? if you end it with the impasse, you make no progress at all. bill: i think it is a question of collectively, who can moderate the situation. we need our european allies to help us. we need germany, we need france. members of the nuclear agreement with iran that basically could pressure iran to move in the right direction. at the same time, i think we have to show a little bit of flex ability. the secretary of state said no preconditions in our thoughts with iran.
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when you just put pressure, sanctions, you go after the nuclear agreement, which i would not have done -- i would have kept it, i think there has got to be a mutual show of restraint. that needs to happen soon because this is a brush fire. these incidents that have happened on the high seas in the strait of hormuz, affecting international oil trade, they are very serious. they involve norway, japan. a message was sent to japan, hey, stay out of negotiating and try to be a mediator. 80% of japan's oil goes through strait of hormuz. there are a lot of bad vibrations. david: as you describe that, it sounds in some ways like north korea, a part of the world that you know better than most americans. you have been there quite a few times. we have sanctions on north korea, we have kim jong-un saying we need to take those off
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so we can make progress on denuclearization, h and our saying, you need to take the denuclearization and we will take off sanctions. what is the next path forward? not to have a summit with kim jong-un. i think he wants negotiations. he went back to the hanoi summit defeated. i think they need economic relief, the north koreans, from the sanctions. there is an incident right now are coming inorts illegally for north korea. we should try to stop those. pressure, but flexibility on our side. you getwe need to say, rid of some of your weapons, some of your missiles, and in exchange, we will do some sanctions relief. stage negotiations that could
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take three or four years. it is worth it. that part of asia is too unstable right now and we need to lessen tensions. tensions are a little less, but the president needs to be patient. stop praising kim jong-un. [laughter] bill: that is not good. let his team do the work. david: as you know so well, everything is connected to everything else. at one time, china seemed to be the pathway into pyongyang. but now china has that very complicated issue in hong kong. i wonder how much has that complicated the situation? we talked to one of the opposition leaders and the council over there and this is what she had to say about the relationship with china. nonsense toolute call a loophole in the law, because it is meant to be a firewall to protect hong kong from chinese judiciary. we are supposed to be different.
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hong kong should come under one country, two systems. turning itey are into one country and 1.1 system. david: bill, you heard her talk about the one country, two systems. is it being eroded? bill: i think it is the best option. in other words, hong kong is a part of china but it is two systems. hong kong individuals, voters and demonstrate and they are not subject to things like the death penalty. there is a democracy there. i think that is the best of all worlds. it is an economic engine for china also. china is trying to make moves that are a bit disruptive. the pro-chinese legislators. the best option is for the extradition law to be dropped. don't do it. leave things alone. let things cool down. when i dealt with china, what
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they cared about the most was not necessarily north korea or trade. they care about taiwan and they care about hong kong because that is the pillars of their view of what china is. we have to be careful. we should be on the side of the protesters. we should be on the side of democracy here. i believe that lady is correct. this is something that is very sensitive to the chinese. to the manyd difficulties we have with china right now, especially over trade . david: exactly, put the two of those together because as you say, taiwan, hong kong, big issues of sensitivity for the chinese government. on the other hand, we are going after them and talk -- in technology. does it help us or hurt us? bill: know, i do not think it helps us. china is a major economic superpower.
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and the reason we have these trade wars -- which i do not agree with. i think that the president is correct in being tough with china in that they have transfer of technology, intellectual property theft, we need to be tough with them. but to accelerate the trade war like we did with mexico over immigration -- these issues that are not linked, i do not think it is the way to go. china has a lot of interests around the world that coincides with us that we could work together. i think the state of hostility that we have does not serve us in diplomacy and trade and economics. david: bill, one quick one on immigration. you were governor of new mexico. what should be done with immigration? bill: the first thing we need to do is stop talking about this wall. doesn't work but the president is continuing. the second thing we need to do is recognize that our border security, our technology, what
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, theed to deter the flow humanitarian crisis at the needs to the congress find our law enforcement agencies at the border to do their job. there is just a lot of people that are suffering. our resources are strained. that is the second thing we should do. i worry about this agreement with mexico because i do not know if mexico is going to be able to comply with putting 6000 of their troops, national guard at the border. the new third country asylum policy which basically says these migrants have to first apply for asylum in mexico. i do nothis deal, but know if mexico is going to be able to comply. not that they don't want to, but it is a resources issue. i worry that the president again is going to put more tariffs on, so i am not very sanguine, i am not very optimistic. david: that is a difficult situation that you know well.
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thank you for being with us, bill richardson, former governor of new mexico and u.s. ambassador to the united nations. from new york, this is bloomberg. ♪ ♪
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jonathan: i'm jonathan ferro. "bloomberg real yield" starts right now. ♪ jonathan: one final read of the u.s. economy ahead of next week's fed decision. economic data and china's disappointing. noble markets are looking for more stimulus as trade tensions bide. we begin with the big issue. the fed decision is up next. >> the market is expecting a rate cut. >> it's likely the fed will cut rates shown --

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