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tv   Bloomberg Markets Balance of Power  Bloomberg  July 16, 2019 12:00pm-1:00pm EDT

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cirilli on capitol hill on the senate hearings on facebook getting into cryptocurrency. anna edgerson on president trump's brouhaha with four first-year members of congress and strong retail numbers in congress and what it might mean for the fed. kevin, is facebook making any progress in persuading the senate this is ok? fact the topd in democratic on the committee calling facebook libre delusional, saying facebook cannot be trusted to protect any consumers in the united states with regards to the digital currency, libra, they have launched. david marcus, the company's top executive says he is going to be working with facebook as well as u.s. regulators. until they get to some type of consensus, then they will wait to formally launch this type of
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platform. some republicans on the committee also skeptical of facebook plans. the chairman of the committee saying he applauds facebook for trying to utilize their platform to serve underserved communities in the digital currency platform. the bottom line comes following a host of different hearings scheduled for this week. david marcus will testify before the house financial services committee tomorrow. let's not forget steven mnuchin yesterday at the white house raising concerns the administration has with regards to the digital currency field. david: before that we had chair powell from the fed raising concerns last week. ,f you were mr. marcus listening to everything you are hearing from the senate, would you walk away having a better sense of what congress once from him? kevin: that is a great question. the short answer would be no. in talking with the internet community and the lobbying
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groups in washington, d.c., as sympathizerschain who believe this is the future, they make that point. the regulatoryre reforms the administration and lawmakers are calling for, rather than just reputational risk concerns we have seen time and time again beyond the issue of privacy. rangingnt to concerns from international regulatory patchwork of regulations they and point tow various discrepancies are republicans criticizing big tech for conservative freedom of speech reasons and other lawmakers like senator elizabeth warren who are calling to break up the big tech altogether. david: if that is not enough, we have another day of hearings on cryptocurrency and antitrust hearings on the house side. thanks much to kevin's really. ton andurn to anna edger talk about president trump's brouhaha with this group of four
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first-year congresspeople. i cannot remember the last time a president spent as much time on first-year members of congress. anna: this is not just about these members of congress. the president is looking forward to a 2020 presidential campaign. these members of congress are very progressive, young, and outspoken. they were out front yesterday defending themselves and defending the work they're doing in congress and their right to be there. the president's comments were widely condemned by democrats and republicans on the hill. an interesting exchange on twitter a few weeks ago. the president defended his tweets saying he did not have a racist bone in his body. alexandria ocasio-cortez tweeted back saying you got have a racist bone in your body, you have a racist mind in your head and a racist heart. she is taking it to the president. david: you have a sense talking
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to people at the white house working on president trump's campaign, is he being crazy like a fox in the sense that if he can get the democrats unite around these individuals, who are certainly to the left side of the caucus, he can make the entire democratic party go to the left in 2020? anna: it is not clear that this is three-dimensional chess, or he is playing checkers with these comments. it will be hard to know because 2020 will be such a different election than anything we have seen thus far. the president was an unknown entity in 2016, but then we did have his public comments. he was not a traditional politician and did not fit into the traditional republican party. haveise, these democrats come to represent, some say the future of the democratic party, but certainly more progressive position that a lot of democrats are comfortable endorsing. there will be ideological and style difference between the president and the eventual democratic nominee.
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they will have to answer for the comments of these freshmen. ford: everything is going hearts and minds, but also pocketbooks. you have any sense what this does to fund raising, either in support of the president or democrats? anna: i spoke with one republican on the house side and he said alexandria ocasio-cortez has been bank for him. he has been helping the nrdc raise money and all yesterday was put up a picture of alexandria ocasio-cortez and ilhan omar and the money flows in. even traditional republicans not comfortable with the racist tone of the president's tweets are not very comfortable with the socialist vision that some of these democrats like alexandria ocasio-cortez not only expels but also embrace and defend and say this is the future of the democratic party to offer more to americans. david: as is often the case,
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follow the money. rieid.'s turn to we had retail sales numbers come out and we were surprised at how strong they were. beat estimates, increasing .4% from the prior month. this suggests the consumer remains solid. the consumer makes up the majority of the u.s. economy and consumer spending has been a reliable driver of economic growth. although we saw softening with consumer spending in the first quarter, when we get second quarter gdp readings, it is expected that consumer spending will offer the reliable boosted gdp has in prior quarters. vonnie: it was just last week -- david: it was just last week we heard chair powell before congress testifying and most of the markets took it as we are certainly going to cut. do you think he wishes he had
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some of the numbers before he painted himself and a quarter -- in a corner? reade: he had the unemployment report as well, which was strong . although we get the strong reports, it does not change the overall picture the fed is looking at. they are still seeing slowing global growth, they are still seeing trade uncertainty weighing on businesses and supply chains, and zynga persisted inflation undershoot low the 2% goal. although these better reports and these positive reports may weaken the case for a 50 basis point cut in july, investors and economists very much expect an insurance rate cut from the fed at the end of the month. david: thanks for the great reporting from washington. now let's get a check on the markets. .ere is emma chandra emma: we are seeing a little lower for the majors, trading toward the lows of the session.
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this after headlines from the cabinet meeting, including the president saying he could impose more caps on china if he wanted. -- more tariffs on china if you wanted. he will be talking more about interest-rate policy during the cabinet rate meeting. .3%,&p 500 down close to close to the lows of the session and the nasdaq down close to .4%. we have the strong numbers on retail sales, factory output and housing, that has been heating up the debate about monetary policy. markets have been watching the possibility of easing. data might be playing into the drop off we are seeing. eco data is having some benefits for some sectors, industrials and materials are leading sectors on the s&p 500. the dow jones transportation average putting in a gain of 2% in trading at its highest since
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may. there is company data that helps honda having its best day since october 2011 and at the highs of the session having its best day for more than a decade. the company says it sees improving freight volume in the second half of the year. analyst tocowan call the report no doom and no gloom. ryder,transportation, and fedex all in the green. it is a different story if we look at the tech supplies. arrow electronics following 7%. now down to percent. it gave us -- now down 2%. it gave us earnings after the bell yesterday and basically said we would see a big miss when it came to second-quarter earnings per share. goldman sachs call that surprising, drew a flurry of
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downgrades including one from bank of america, weighing on the other tech stocks. what is interesting with micron's we have heard from analyst who have been praising micron's performance since last set of earnings which came out of the india of last month. nevertheless -- at the end of last month. we are looking at one of the smallest changes to the s&p -- one of the smallest ranges to the s&p 500 despite the losses in the tech sector. this is the daily trading range, that purple line showing where we are. trading range just over five points for the s&p 500 and that is the lowest since thanksgiving 2017. david: many thanks to emma chandra. we will keep you updated on any headlines that come out of president trump's ongoing cabinet meeting. coming up, facebook's cryptocurrency. we talked to one of the lawmakers will have his options to ask questions at the house hearing tomorrow. from new york, this is
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bloomberg. ♪
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david: president trump is moving the markets with his comments at a cabinet meeting. he says europe and china are pumping money into their systems. he says china was supposed to buy u.s. farm products and he could impose more tariffs on china if he wanted, all this sounds like it is not moving rapidly toward a resolution. he says tariffs will only have positive effects on the united states of america. in the meantime, let's bring in congressman warned davidson, republican from ohio. he will be asking questions about cryptocurrency tomorrow. we will ask him about that in a moment. good to have you here.
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let me get an initial reaction to what we are hearing from the president. we had hoped we were moving toward resolution. it sounds like we may be moving further away. >> thanks. we are following it as well. we are hoping for a speed deal. everyone in the world wants to be part of the success going on in the united states. market,e best consumer the best market for goods, capital, and intellectual property. china has not lived up to its obligations under previous agreements like the wto. zero countries recognize china as a market economy. the president is right to insist there be me to the agreement. if he does want to that empty words agreement, it would be done. david: your state of ohio does a lot of exporting. do you find your constituents understand this and are patient? how bad are they hurting? rep. davidson: they are supporting the president. they know we have been on the supporting end of bad trade
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policy for a long time. it is high-stakes. it is costing and folks a lot of money and are manufacturers a lot of money. people realize china has taken advantage of the world's generosity and we should be working more aggressively to multiply our allies in this ongoing dispute with china and minimizing the number of enemies we have. if you can unite people to deal with the bad trade practices that are universally recognized around the world as emanating from china -- intellectual property, the dumping of steel, unfair practices in terms of dislocating control of entities that want access to the chinese no similar response in domestic markets of the united states or europe, this has shifted the balance in a way that china has exploited and the world has a vested interest in seeing this result in a better way. david: you make a very important point. when i talk to people in the
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united states on both sides of the aisle or around the world, there is no one who disagrees that the terms of trade with china have to change, particularly in respect you mentioned. the president of the united states is saying we want to do this bilaterally. we do not want to do it multilaterally. have you heard people in congress agreeing with our allies who agree with many of the points he has on china? some of that: turns to escalate things with china. the president wanted have -- and he does have a strong personal relationship with china's leader. they feel like they have had productive trade negotiations. when i speak to investor lighthizer and others about the progress. they wanted to leverage that. they were not confident they would have the same report if they made it multilateral. when it comes down to the truth fail ratio, maybe we do need to
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go to more aggressive things, like bad actors, companies that are dumping or intellectual property theft. people agree these are the bad actors, it does not have to be about china, it can be against the individuals and the companies. johnny gets protective. none of our people are doing that. everyone in the world knows they are doing that. is the chinese government behind it or is it just bad actors. if we could reunite the world and take sanctions against the bad actors, it does not have to be country against country, it could be the bad actors. to your role in the house financial services committee. qamar you be asking questions about facebook plans for libra. what you going to that hearing wanting to find out question mark what you want to know from mr. marcus? rep. davidson: a lot of people have concerns about facebook's filtering of content. at the core of that is they've
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have a lot of your data and a lot of privacy concerns. -- the they are proposed way they have proposed libra is they have a central authority on top of this in the form of a nonprofit. but can that entity or the wallet they have proposed filter transactions in a way that facebook is already shown to filter content. that makes people uneasy. what will they do with this data? how they safeguard it? because they proposed evaluation of a coin called a stable point, they inherently have to have a central authority. will it ever be really decentralized? in a stableit is point that is a synthetic currency comprised of five currencies truly be stable. you have variances among the currencies. of this ismuch cryptocurrency and how much is because it is facebook? facebook's name is on this.
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we heard from mr. marcus in the hearings in the senate. this is part of what he said. >> trust is primordial and we have made mistakes in the past. we have been working at our continuing to work hard to get better and we have invested in a number of programs, notably on privacy, election integrity, and a number of other issues. david: is it crypto or is it facebook? rep. davidson: in the house financial services committee, we are doing two hearings, one deals with facebook and libra, and the other deals with tokens that might be differentiated from facebook and libra. we should not conflate the two. there's a big difference between bitcoin, where's the headquarters for that, it is completely decentralized, versus facebook. if you look at the use cases, this is like the early days of the internet. no one had a vision for all of the potential cases on the
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internet, nor have we exhausted them all. when you look at blockchain, you're looking at companies using a token to represent the title of the car or a deed to land. these are goods or services. what bitcoin has proposed is to what christine lagarde was talking about that at the international monetary fund, a basket of currencies that would be recognized not quite as legal tender. what are the concerns there was mark it crosses over from a payment system to monetary policy concerns. facebook brought attention to it in a way that those of us who have been working in the space for a couple years have not been able to get that same level it -- that same level of attention. we are talking about the right issues and we will see how the hearings go. david: do you see advantages for the united states of america if it could be worked out in such a
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way that people can deal with the problems. we had jay powell going through some of the concerns he had. if you get through some of those concerns, could it be a better mousetrap? rep. davidson: when you look at ,lockchain, open blockchain tokens, which libre does not meet the criteria today, a lot of the company with this innovative concept are american companies. unfortunately, they're are launching in places like switzerland or singapore because the u.s. does not have laws or legal certainty. see companies you leaving our markets avoiding u.s. law. they're are leaving for places like switzerland and singapore to find laws. we need that light touch legislative certainty. that is why i have a nonpartisan bill that gets to the heart of what is security and on security. the fcc has driven capital offshore with their failure to
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provide the certainty the markets need. that is not their fault. that is what congress is supposed to do. the great thing is we are finally getting the hearing a lot of us has asked for. david: one thing is clear to me, you are prepared for the hearings tomorrow. i look forward to hearing your questions. republican warren davidson from ohio. still ahead, fiat chrysler is in the crosshairs with goldman rating it as a cell. -- rating it as a sell. our stock of the hour is next and this is bloomberg. guy: -- our stock of the hour is next in this is bloomberg. ♪
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david: you watching "balance of power." fiat chrysler is our stock of the hour, suffering its worst day since may after goldman sachs rate of the stock a cell. -- raise the stock a -- rated the stock a sell. price target of $13.50,
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more than three below the average analyst price target. we have a chart which shows you how analyst have been losing faith in fiat chrysler over the past year or so. the street targets have been falling 50% faster than the stock price. we should be saying fiat chrysler has been outperforming its peers. nevertheless, goldman pointing to what they are calling a slowing product cycle for fiat chrysler. they mentioned the outperformance over last year but now they see there is obviously upside from their. -- from there. i shall bring up to show you how much volume which we are show -- i have another chart which i shall bring up to show you where we are. this is the 20 day average, the blue line, and here we are seeing the trading volume much higher. fiat: a lot of the chrysler outperformance has been trucks in the united states. they have had trouble in china.
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the president of united states right now saying i do not know about these automobiles. maybe something will happen with a german car company. they have trade concerns. all companies have been battling trade concerns. a number of sectors have been. it is this topic that comes back. we know it causes jitters in the market. the markets have been moving on those comments from the president. david: they have been, as you told us earlier. coming up, the house antitrust committee is starting hearings on big tex. that will be a antitrust angst. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. for bloomberg first word news, we go to mark crumpton. president trump is
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reiterating he could impose additional tariffs on chinese imports if he wants. the president said he would hold off on a threat to impose tariffs on $300 billion in chinese imports, and that chinese president xi jinping had agreed to buy large amounts of u.s. farm goods in exchange. but those purchases have yet to happen. the president spoke during a cabinet meeting today at the white house. a senior democratic senator today said facebook is dangerous. ohio's sherrod brown made the comments during a hearing on facebook's plan for a new currency called the breath. senator brown asked for assurances from facebook executives at the plan would not jeopardize the privacy of the billions of users data. will takes "facebook the time to get this right and welcomes an extensive review by federal regulators." the judges hearing arguments today about whether roger stone violated a gag order in a case that grew out of special counsel robert mueller's russia
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investigation. prosecutors say his social media posts violate an order banning him from publicly commenting on his case. stone, a longtime friend of president trump, is charged with witness tampering and lying to congress during the investigation between ties between the presidential campaign and russia. at least seven people have been killed, 40 others are trapped after a residential building collapse in mumbai today. officials say the building is about 100 years old. rescue crews are still pulling survivals from the rubble. the cause is under investigation but building collapses, fires, events in unregulated areas is common. 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. the antitrust subcommittee of the house energy and commerce committee begins 90
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minutes from now and the competition issues involved in big tech right now and whether new steps need to be taken to dilute the concentration of facebook, alphabet, and apple. we welcome jennifer rie, our senior analyst, and kevin hardwick, and former head of the bureau of competition at the ftc. what is the point? what is the endgame here for congress in having this hearing? what is this likely to lead to? jennifer: the idea is to look at big tech and online plant arms and all complaints over the past few years about the power and what they do to allegedly hinder competitors and new entrants and ask whether there should be legislation, changes to the antitrust legislation, something else, or supplements to the antitrust legislation to deal with this. i think they are right at the
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beginning. they don't even know yet if there is a problem. what they are asking is is there a problem, and if there is, what is the problem? if there is a problem, how do we resolve it? david: kevin, why do we think we need new legislation? we went through this with microsoft. bill gates appeared before congress, and they at least slowed microsoft down, it changed the terrain. is, and it is something that the current head of antitrust relies on heavily. rules arethe adequate, they have been around for well over 100 years. it was applied to the railroads, standard oil, that type of thing. as we moved into high-tech and it sufficiently --
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it is sufficiently fluent. if there is any concern about today's antitrust law, it moves too slow. all of the big monopolization at&t, ibm, microsoft, they all took over 10 years to decide. in high tech, that is an eternity. david: is this a difference in kind or degree as a practical matter? network so-called effect in technology change the rules of the game? you can go global and huge with little incremental cost and displace anyone trying to come into the marketplace. jennifer: that is one of the issues with congress that they will explore. this is about innovation and entrepreneurship. there will be a focus on new entrants, smaller competitors unable to compete, and the network effect plays into that. a company needs that network effect to be big. you need one group on one side
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and another group on the other side in order to flourish. the network effect will play into it, but it will also be about tactics that these companies may or may not be engaging in, that also has an effect on the smaller companies. david: whether we need new statutes or not, it seems one fact that no one can deny, which is we have slowed down the creation and destruction of companies in this country and there is not as much vitality. we have a graph that shows over time we are not creating as many companies and not as many are exiting the marketplace. that cannot be good. kevin: competition presupposes success, but it also presupposes failure. you expect that. in this situation, the only universal fact is these companies are very large. we had never made it be illegal said because -- simply because the company was big. we have to realize, a lot of these products, like google,
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they have indexed the internet. they make it available for free. we all find information much more quicker than before. they are entitled to make revenue and they typically do it through advertising. david: sometimes they act in ways that they claim to be exclusionary, even with google, a claim with respect to youtube, an ad using software to sell ads within it. there are things like that that could raise antitrust concerns, how they use the dominance. kevin: monopoly maintenance has to do with the idea of how you use your monopoly, even if you got it equally. on the other hand, what they are doing with respect to you to, a lot of that is to be not necessarily antitrust. someone goes into the business of packaging youtube videos and making them for sale. google decided to create its own product. that gives consumers additional
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choice. i don't see the antitrust issue. ofid: explain the two ends pennsylvania avenue here. does he say it is my business, not his business, do they interplay? jennifer: the hearings are a source of information. practicing,ence, what i saw was the antitrust agencies, authorities, they go on based on the facts and economics and kind of put blinders on, pulling the evidence, and make a decision based on the evidence, not necessarily political grandstanding that may be ongoing. i also think part of these hearings is to put heat on the ftc and doj to stay on this and move along. they may have investigations already ongoing or about to start.
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it keeps pressure on them, but at the end of the day, will not have a lot of effects on the results of the investigation. david: we will find out a lot more this afternoon. thank you to jennifer rie, and kevin arquit. lost the bluen wall of the upper midwest in 2016 but democrats rebuilt some of it in the midterms. backgroundill the fall in 2020? we will ask former wisconsin governor scott walker. this is bloomberg. ♪
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david: you are watching "balance of power." i'm david westin. to power inump came
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2016 on the strength of some wins in the upper midwest, especially ohio, michigan, and wisconsin, all of which look to be key for him winning in 2020. walker,us now is scott who served as the 45th governor of wisconsin for eight years. we welcome governor walker for today's conversation in chief. welcome, governor, good to have you back. give us a snapshot of the people of wisconsin as far as you understand them and what they are looking for going into the 2020 election with respect to the president of the united states. scott: well, the economy is booming. record low unemployment. during my last year to the lowest it had ever been under 3%. in 2010 come it was over 9%. the economy is booming, states are in good financial shape. ensure anyhat would incumbent a strong reelection,
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but of course, this is not a normal incumbent. the challenge for him going forward is getting that message out that more people are working than ever before. and that the economy is heading in the right direction and this is a real choice. but there is a disagreement of opinion out there. previous elections were good for republicans. 2018 was good for democrats. this is probably going to be the decisive state in the presidential election. david: it was very close the last time around. razors edge of the last time around. what about the issue of trade? you have a fair number of dairy farmers up there. how concerned are they about not just china but the successor to nafta? scott: a lot of dairy farmers are hurting, and they had been for a long time. the new agreement, the president, to his credit, in the beginning of 2017, i pointed out
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one of the problems we had under nafta was that ultra filtered put inhe price controls place in ontario and nationwide in canada were hurting farmers in wisconsin, minnesota, and elsewhere. he held out for that. this agreement before congress with the u.s., canada, mexico, one of the key provisions was providing relief for dairy farmers. that is why we are hopeful the congress will pass this. that will give us some well-timed relief that dairy farmers particularly in the midwest need. david: what about the promises the president made to the people of wisconsin? you say employment is strong, but at the same time, we had things like the foxconn initiative, which you are involved in. i thought they decided to pull out, and then came back in but not as big. what happened? scott: they broke ground last year around this time, next
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year, they will be cutting massiveor their ecosystem of their new campus. all of those tax credits are tied into performance. i believe they will exceed over time the 13,000 jobs they were talking about, $10 billion investment. in the larger context in terms of promises, this president promised tutoring the swamp. you look at the northern part of the state, democrats, the district that sean duffy now has, for four decades, we had david kobe. that is now held by a republican. that is not the strongest district in the state for president trump because they are the forgotten men and women of america. this president needs to continue to show that he is fighting for it comes to manufacturing jobs, agriculture, timber. these are the things that will be keys to the 2020 election.
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proud coming in as the president of the young america foundation, really hoping to find the difference between socialism and free market capitalism. aving capitalism and democratic republic as we do now. if people look at venezuela, the soviet union, they see socialism failing. if the president is able to define those running on the left thoses being embracing failed socialist policies, i think he wins. david: if you poll across the pollry, socialism does not very well with many people. many people are pointing to health care as a form of socialism. what do you think about that? people are tying in
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concerns with obamacare, pre-existing conditions. are president, others always going to cover people with pre-existing conditions. that is a personal issue to me. my wife is a type one diabetic. my mother is a cancer survivor. we will always cover people with pre-existing conditions. for all the hype and hysteria about this presidential debates, we see people raising their hands on the democrat side saying they will provide free health care for people that come illegally, but yet, our own citizens are having a hard time under obamacare making the premiums and co-pays. we have to find a way for the market to drive the solutions. we have to do better in that. putting the heavy hand on the federal government, more involved is not the answer. that will be a key difference as well. david: what about obamacare? the republicans tried again and again to repeal it, including
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when they had both majorities in congress, could not get it done. what is the alternative to that? president trump says we will tell you after the 2020 election. how does the voter go to the poll with republicans not knowing what they want to do about health care? scott: i think the president will lay that out, putting more power in the hands of individual consumers and their families, not treating people like a statistic but as a real person. we have seen the failure in so many federal programs when you nationalize things. instead, empower people to make their own decisions, and give them support that they need. as you said, even some republicans here in washington failed to deliver on that promise. that will not happen with this president given another chance. --t is part of the long-term why i'm so pleased to be taking on the new role with the young
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america's foundation, this idea, a contrast -- you mentioned, socialism does not poll well nationwide. but adults under 30 somehow believe socialism is a good idea. is, the reason why poverty has been cut in half globally is because of the fall of socialism, the rise of democratic capitalism. more important, the clear establishment of the united states as the sole superpower in the world. we need that to continue. probably the greatest time for any generation to be alive in this world. america is leading the way in that come back. david: a lot of time and attention of the president is not taken up by jobs or even health care but by attacking women members of congress, saying they should go back to where they came from. is that an effective way to get the point home about socialism? some have identified as
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democratic-socialists. scott: there is no way that i would be doing that. lindsey graham was right the other day, let's aim higher. let's talk about the policies that many of the folks here in congress and running for president are embracing, policies that we see failing right now. under the mature regime in venezuela, nine out of 10 venezuelans are living in poverty. a decade and a half ago, this wealthiestone of the nations in the hemisphere. , venezuela has seen of about 20 pounds per average because of malnutrition and deprivation. socialistshe choices make when they talk about prosperity for the many. the reality is, power goes into the hands of the few. all too often, we see poverty coming.
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we do not want that in america. america was born free, will always be read. david: if you were the incumbent president of the united states and your goal was to win wisconsin, which democrat would you least like to run against? scott: conventional wisdom has been that joe biden is perceived to be not only the most moderate of the candidates -- and that is saying a lot. this bunch of candidates is pretty far to the left. so much so the vice president for barack obama, who is considered to be a progressives dream is considered a moderate. he is not. just the way that his persona is, makes him a competitive candidate. i think the president can win against joe biden, but if you look at that group, that shows you how far off the deep end they have gone. david: thank you for your time today. scott, former republican governor of wisconsin.
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coming up, the 2020 money race. who is ahead and who is behind? the breakdown is next. this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. it may be too early for the public opinion polls to mean much in the 2020 presidential race, but certainly not too early to be tracking the all-important fundraising race. to take us through the numbers, we welcome sahil kapur from capitol hill. who is ahead and who is behind? >> a standout surprise of the second quarter was pete buttigieg, the little-known mayor of south bend, indiana who raise $25 million in the second quarter. he has been up and down in the polls, not a top three candidate but he hasls, impressed a certain set of democratic donors, largely on the coast, wealthy, who believes
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he has the right message to carry this through if he is the nominee. others like joe biden are raising a lot of money. he is burning through a lot of money. bernie sanders also raising a lot of money. elizabeth warren raised an enormous amount of money while refusing high dollar fundraisers. if she carries her campaign through without holding fundraisers and still manages to raise the kind of money that you need to be a successful candidate, that could change the way campaigns were going forward. david: let's go back to that bern rate. kamala harris is also burning through money pretty fast as well. sahil: she has raised quite a bit of money, is burning through a lot of it. this will be the question going forward, how much our candidates spending? elizabeth warren has hired a huge staff, has invested in the ground game early on, in the belief that she can get their help to craft these important
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policy proposals, and list volunteers in these important states. that will be an important thing to see, who is burning through money? once the money runs out, candidates cannot travel, and they end up dropping out. this ends up being one of the first things that winnows the field. david: speaking of kamala harris, you have a piece talking about her proposal on drug prices, which i found really interesting. it sounds a little bit like what president trump was talking about, tying it in part two with foreign countries pay for it. about it is a little bit what president trump talked about in terms of medicare prices. harris wants to do that across the board of what is paid by medicare, medicaid, private insurance. what she is proposing to do is setting a so-called fair price on prescription drugs based on the average of what other oecd countries have for that.
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if drug companies raise their prices beyond that level, that hhs sets. she will tax that money at 100% and send that money back to tumors in the form of rebates. david: thanks so much to sahil kapur, great reporting. we want to recap some of the headlines from president trump's meeting. he now says turkey will not be able to buy f-35's. we know that this is involving the missile defense system that turkey purchased. president erdogan said there would not be many sanctions. we will continue to follow this as it develops. live from new york, this is bloomberg. ♪ we're the slowskys.
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we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands!
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check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. hey! 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... 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. mark crumpton with bloomberg first word news. president trump may face a challenge from within his own party in 2020. former south carolina governor
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mark sanford is considering a primary challenge to the president. sanford told the newspaper that he will decide whether to run over the next month. he served as the state's governor from 2003 to 2011. he was elected to congress in 2013 and became a fierce critic of the president but lost the republican primary for his house seat in 2018, after the president endorsed his opponent. herto rico's governor says will stay on the job despite the deepening political crisis gripping his administration. thousands of people took to the streets to demand his resignation after the release of profane and misogynistic chats with aids. the investigation led to the arrest of twoaides in his administration last week. president trump's nomination for secretary of defense says the u.s. needs to take greater steps to counter threats from china.

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