tv Bloomberg Markets Balance of Power Bloomberg August 19, 2019 12:00pm-1:00pm EDT
meets the world of business. on the brief today, shawn donnan from washington on the latest huawei reprieve. from frankfurt, germany's plan for fiscal stimulus, and katie davis on the jones strike on a saudi oil field. let's start in washington. there's a lot of national , but they got another 90 days. : for a limited part of their business. this extends the 90 day reprieve for existing u.s. customers of huawei, particularly those that run networks that depend on one way equipment, and some suppliers to always japanese business. we are looking at google and its android software that allows google to keep updating huawei phones with new security patches and so on. this does not address the huawei's 5gtion of
ambitions or the issue of sales by u.s. suppliers like intel and others to huawei for new products going into the future. they are still prohibited from doing that. this is a limited move. we need to be careful about over interpreting this. there is still a crackdown happening on huawei. the department of commerce added 46 new huawei subsidiaries to its blacklist today, but at least a temporary reprieve for some u.s. customers and a limited suite of suppliers. that is anid: important distinction. thank you so much. now let's go to carolyn in frankfurt. we had a report germany will move ahead, the finance ministers and 50 billion euros. what we know about what they are
planning? carolyn: just a backup, we heard from the bundesbank earlier that they see the german economy potentially facing the risk of contracting in the third quarter. , that wouldarters mean we find ourselves in a technical recession. we're are also hearing from sources close to the government that the government is looking at stimulus measures that could target the domestic economy. in the past, what we have seen the government do in those situations is payout bonuses to incentivize car purchases. this time we are hearing they are looking into incentivizing more energy-efficient homes, promoting short-term work, that kind of thing. ist you need to understand the hurdles for the government is quite high. 's lower house of
parliament would have to declare crisis before can issue more debt than is given under the guidelines. until you see that widespread malaise in the german economy, it might be difficult to justify for the government. vonnie: -- david: thank you so carolynn in frankfurt. tina, the price of oil did not want to react much. tina: you think anything that happens in saudi arabia would spread terror throughout the entire market. this is a market that has been obsessed with demand. if you look at what has been able to move the oil market frequently, it is looking at the trade war and what happens there and whether or not the global economy will have the kind of demand going forward all of the supply is therefore. what we saw on saturday was there was a drone strike. this have claimed
responsibility for that drone strike. it is the latest in a series of strikes as we see the proxy war playing out in yemen. they have attacked pipelines and airports and oil fields. this is one of the largest oil fields saudi arabia has. david: becoming more and more hostile in saudi arabia. now let's get a check on what is going on with the digital tax from france. tech executives are in washington testifying on possible u.s. retaliation for the new french digital tax that when into effect last week. we welcome national foreign trade council president and a former senior official. you are giving testimony on the subject. >> yes. good afternoon. i testify this morning about the dangers this new french digital sales tax introduces into understandings about international taxation. it threatens to undermine the
stability of international understandings on tax. companies to go after based on their gross revenue profits as income or most taxed agreements have provided in the past. secondly, they arbitrarily set a threshold which basically captures all of the big american internet and digital companies. most of the smaller french companies get out from under the taxes this way. it is a rate on u.s. tax -- it on u.s. taxpayers to promote their own digital industries. guy: you are right it is on -- david: you are right it is on revenue rather than income. it is directed to digital services provided to french people. it is not global revenues. it is the one specifically derived from france. rufus: it is a little more
complicated than that because they take the global revenues and they did determine what total digital services activities france represents. without respect to whether a particular company has actually done that much or whether you show that many digital transactions for the company. it sets it arbitrarily. the bigger problem is it then exams smaller companies from it, it sets a threshold which captures the big guys. it is such a revolutionary approach to taxation anyway, because instead of looking at income and where you do your business, where your profits are allocated, where you have your operations, it arbitrarily taxes all of it in france. david: tell us about this proceeding you testified in. it is the section 301, we heard that number more recently, one of president trump's favorites.
the administration announced this before president macron had sound the statute into effect. what is the likelihood they will find section 301 would be appropriate and what would be the retaliation? rufus: i do not think i can answer the second question because first you have to have this investigation. 301 happens under section is this gives the u.s. trade representative the authority look at foreign policies or practices that are unreasonable and unjustifiable and impose restrictions on u.s. trade. there are issues about whether this french law would violate their obligations under the wto agreement on trade in services. that is one avenue for them to take. they also can look at other aspects of it on a more bilateral basis. we hope what will happen is the french will realize that what they should be doing is working
in the oecd process. there is a process in the oecd to update the rules on how to treat the digital economy under existing tax regimes and how to allocate profits, how to make these determinations. we think the french hot to follow that process rather than acting unilaterally. on thisthis -- david: trade issue, to we have allies around the world? do we have allies that are similarly trying to put pressure on france saying please do not go forward with this? rufus: i think there will be. the eu itself is very concerned about this because if each country start independently setting its own system, it will create a organization of tax balkanization of tax regimes and competitive tax
schemes. that is a big worry of the european union. a lot of other countries, our neighbors in canada and mexico are just about to conclude a usmca, which the has rules about the digital economy. there are a lot of countries who will want to say do not go down this unilateral path. follow a multilateral system. david: thank you so much for joining us. rufus yerxa, national foreign trade council president. abigail doolittle is here. president trump has tweeted he wants a 100 basis point rate cut out of the fed. r the markets reacting at all? abigial: not that much. at this point, given all of that back. a big risk on day. each of the major averages up more than 1%. oil up for a second day. the s&p 500 and the nasdaq up three days in a row. seeing a rally from last week's
bearishness. fueling it more so is the huawei reprieve and the german stimulus. let's look at a chart of the s&p 500. not much of reaction from president trump. we see the s&p 500 is that levels it has been all day. that headline came around here. we're now at levels equal. not much of a reaction. investors and traders thinking that that is unlikely to be listening to federal -- two president trump. a bullish sector composition. we going to the bloomberg and use the imap. energy in sympathy with oil rallying. trade tensions perhaps easing between the u.s. and china, that could be a positive. china is the world's largest consumer of natural resources. tech,dication services, all of more than 1%. speaking to the bullish nature of the day. on the bottom we have the
defense sectors, utilities and real estate. those are high dividend yielding stocks. today we have rates higher so those dividends look less attractive. as for some of the individual movers moving on the day, there was one large-cap company to report. that was estee lauder. , they beat 10.4% estimates despite slowness in the u.s.. big growth in asia, plus the outlook positive. wynn resorts up strong on positive results and kohl's of 4.9%, rallying ahead of the report tomorrow. , ain, it is a risk on day rebound from some of the volatility last week as the bulls are trying to take charge. david: coming up, boris johnson is on his way to funnel europe to talk brexit and 2 million barrels of iranian crude have left gibraltar, heading east, while hong kong has had another
david: this is "balance of power" on bloomberg television. i'm david westin. itika: president trump is reiterating his criticism of the federal reserve and what he called the lack of vision by jay powell. on twitter, the president urged the fed to cut interest rates by at least 1% to help the world economy. he added that the u.s. economy is strong and democrats are trying to "will it to be bad" for purposes of the 2020 election. thes johnson is dismissing notion of recalling parliament
early from its summer break. over the weekend, the government documents warned of widespread medications shortages and water delays in the event of a no deal brexit. johnson says the reports are out of date and the house of commons will return as planned on september 3. in iranian supertanker with $130 million worth of light crude oil has left gibraltar. the vessel is heading east into the mediterranean the with its next destination reported to be greece. the tanker has been detained in the british overseas territory where attempts to breach european union sanctions on syria. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. gupta.tika this is bloomberg. david? david: another weekend and another set of protests in hong kong. the most recent were more nonviolent and conducted in
driving rain. , strapome reva goujon for vice president for global analysis who comes to us from austin. let's start with hong kong. it did not seem to be nearly as pilot, does that mean they are changing direction, or is it just because of the rain? reva: the momentum is still there. we need to be mindful of who is leading the organization of these protests weekend by weekend. ,he civil human rights front which is the main organizer behind is the march we saw at the weekend, which was peaceful, they have had more peaceful marches in contrast to the student led actions that have been more violent like what we saw with the airport. it would not count out the student led actions just yet. we have the october 1 anniversary in china, there could be big protest actions planned around that. the man -- the momentum is still there.
we need to see protests before we say this has called down. david: is beijing breathing a sigh of relief? reva: they are in wait and see mode. they do not want to intervene, but you are seeing cracks within the business community. they are watching to see if the .omentum does slow down if the student leaders will not be as able to get as many people out, whether that will lead to more splits in the protest movement. i think they're just monitoring closely at this point. david: let's turn to that tanker with reportedly iranian oil steaming east out of gibraltar. is this a lost the united states, a lost of faith with respect to iran? reva: we have to see where the tanker ultimately goes. there could be some ship to ship transfers and we would have to see who would receive their shipments. i doubt you would see an eu country across the u.s..
if we do see an attempt by the u.s. to see the tanker you can bet iran will retaliate. i do not see this as a loss of face for iran. tensions are still high and you have a number of issues in the region. explosions going on in iraq. three in recent weeks on weapons depots that belong to iran backed militias. if they're going to retaliate, their u.s. targets within range. still a lot that can contribute to those military tensions. david: we also had a meeting between president macron and president clinton -- and who said theyn, were prepared to implement the iranian agreement president trump has walked away from the situation. how does that play into u.s. strategy with iran? reva: the u.s. strategy has boiled down to the tactics of sanctions and on september 5, iran is expected to escalate some of its nuclear activities.
what is the go to response by the u.s.? more sanctions. what is the response by iran? demonstrating the threat it can impose to tankers in the strait of hormuz. even as we are in the slower moments when some of the tanker activity has died down, we would still see escalation soon enough. david: as the u.s. lost influence in the region because of its position on iran? reva: just look at operation sentinel, the u.s. led maritime security alliance that was supposed to deter iran from these tanker attacks. before boris johnson teamed up our the u.k. said they would do their own european led thing. or is johnson said let's join the u.s., now the germans are saying let's do the european thing. you are still seeing splits in the alliance. only saudi arabia and japan are saying we will join the u.s. in some capacity. that is a demonstration of how the u.s. does not have allies that are willing to follow its
lead in the strategy on iran. david: speaking of boris johnson , he has a trip in europe to persuade people like macron and angela merkel to change their position on brexit. his is a full's errand? fool's errand? reva: he is not going to change their mind. it is coming down to a battle egos between boris johnson and jeremy corbyn. you saw germany corbyn's plan for how they were prevent pinocchio brexit. johnson fromrevent setting the deadline after the election deadline, and the problem with labor's plan is corbyn is saying i'm the caretaker prime minister, but there are a lot of rubble tory members not ok with that and they are risking expulsion from their own party by voting against their own leader. if there is going to be a confidence motion that passes, it has a much higher likelihood
of passing if jeremy corbyn gets out of the way. david: there is little doubt that boris johnson is determined he will be out by october 31. he said this over the weekend again. we are out, deal or no deal. reva: it is the ultimate test of rhetoric versus reality. if he is looking at his electoral prospects as he is the man to deliver brexit, forcing a no deal brexit than holding election right after, it will probably not do well for his electoral campaign. logic dictates he will not do that. there is that what if. if you have populist leaders like boris johnson in power, it is the what if that will continue to gnaw at everyone. it is a question if you see the opposition members in parliament come together, if jeremy corbyn gets out of the way and we see that confidence motion passing to make that much harder for boris johnson. david: thank you so much for being with us. that is strapped for vice
david: you're watching "balance of power." i'm david westin. shares of pg&e are falling down to the lowest since jerry were -- since january after a judge will a jury could pay as much as $18 billion in damages to wildfire victims. bad news for pg&e today. taylor: it seems like bad news since the judge lifted the freeze on the lawsuit saying a jury could decide whether they pay $18 billion or so to the wildfire victims. analysts caught off guard by this. even our bloomberg intelligence analyst said this was a big left side tail risk it came out of
the blue. it could be up to $18 billion in claims. this is a complicated story. state investigators said pg&e did not cause the fire, but now victims will say maybe they did. maybe it was not a private electric system, maybe they did not do enough to cut down the surrounding trees and the surrounding bushes so they did not do enough to help prevent that. this is where the complicated story comes in. the share price tells it all. wiped out all of the gains for the year, backed out of the worst since january 14. then the reaction came from the street this morning. if you go into the terminal, it is the last price, which is $10 a share, versus the analyst estimate, which is still about $20. citigroup out this morning
cutting it to a sell, lowering the price target to four dollars from $33, saying these liabilities at $15citigroup outn instead of one or does go billion dollars is a huge tail risk event. we should get the bankruptcy plan september 9. this is good news for pg&e. they said they now want exclusive rights to that as you can see in the terminal. liabilities well above the current market cap. they are hoping to favor shareholders, bondholders pushed aside while they get their exclusive rights. david: a little right of hope for pg&e. many thanks to tailor. -- many thanks to taylor. what is left for president trump's argument for reelection in a recession does come? we will talk about that with our panel. this is bloomberg. ♪ from the couldn't be prouders
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the site of the fire damage notre-dame cathedral today. work had been suspended for a month over fears of lead contamination following the blaze. the workers are clearing out debris and studying and consolidating the medieval monument. a crucial first step to repair the cathedral or a years long multimillion dollar reconstruction effort. wildfires in spain's canary islands is throwing flames 160 feet into the air, forcing emergency workers to evacuate more than 9000 people. the blaze described as a monster began saturday. officials say emergency workers are facing temperatures near 100 degrees and gusting wind blowing embers into the air, sparking new fires. sudan's military council says the country's probe democracy movement has asked for a delay because of last minute disputes on the appointee.
rules to dan three years until elections could be held. it was held with the goal of resolving weeks of standoffs. is considering a ban on heating fuel exports to japan. officials say japan would likely turn to china and singapore for kerosene and gasoline imports in the event of a korean band. last year, 79% of japan's imports came from south korea. global news 24 hours a day, on-air, and @tictoc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. david: turning now to the intersection of the economy and politics, the national association of business economics found most economists expect the u.s. economy to enter a downturn by the end of 2021, aboutspondents are split whether that will come before or after the 2020 election. president trump brushed off any concern he had about the
election yesterday. >> i don't see recession. the world is in a recession that isw, and although too big of a statement, china is doing very poorly. a report, just saw the worst year they have had in 27 years, because of what i've done. david: at the same time, only 5% of the economists surveyed expect a conference of deal between the u.s. and china. for more we welcome our panel, dr. genies a note, -- genies a no, and genevieve wood. i'm a start with you, genevieve. it strikes me watching the president and also larry kudlow, peter navarro over the weekend talk about there would not be recession. it really sounded like they were trying to stave it off, that they were worried about it. >> recession is not good for
anyone running for political office. if the economy is doing well, the candidate that is the incumbent usually does well. which is why you see all the democratic candidates, i hate to say it, but almost wishing for a recession. they would like to see the economy take a downturn. look, the economy is doing well right now, straight talk seven a big impact on this. in terms of employment numbers, new businesses starting, all those numbers point in the right direction. no one knows exactly when the next recession is coming but i think there is a lot that can be done to keep it out of that factor, and that is probably stabilizing some of the trade talks we hear about. frankly, if congress in washington would start alan finkel and its, as opposed to putting those numbers forward, that can make a big difference. david: what about the point that she raises, that republicans are talking up the economy, and
democrats have to be careful not to talk down the economy. you don't want to wish failure. >> nobody should be wishing failure. very detrimental to all of us, including most importantly workers in the united states. that said, the president has a peculiar problem on his hands, which is, much of this is being noten by his tariff wars, just with china, but our other big trading partners, including canada and mexico and others. he owns that. if you does not resolve the tariffs -- i trust the economist when they say it is unlikely that he will -- so what incentive does china have to come to the table? the president is in a tough position and that is why you have the administration out on the sunday talk shows trying to talk of the economy. i hope they are right and the economy stays strong, consumer confidence is strong, but we
will have a recession, and timing will be key. we are having difficulties, and certainly last week was a sobering week in the we are headed for a bumpy time here, how much of it is because of the trade disputes , how much is because of the fed? president trump tweeted yet again this morning that the rate should be reduced by 100 basis points with perhaps some quantitative easing as well. if that happened, our economy would be better and the world economy would be quickly enhanced, good for everyone. is that one of the solutions, lower interest rates? >> it is very hard for anyone to say this is what will or will not cause a recession. let me go back to the trade thing. this is where the president ought to come out and say when congress is back in september, we have a deal that we made with canada and mexico, but congress needs to pass that. china is a big player,
absolutely, but they are not the only player when it comes to u.s. trade negotiations. there is a lot of good news out there. congress has to pass it. if you have deals like that coming forward, it does bring more stability, and that would contribute to the economy moving forward. ask a jeanne, i want to broader question, the future of capitalism. a lot of people have written about it. the business roundtable came out and changed their statement for the priority of corporations, saying it cannot only be about shareholder value. you have to take into account other stakeholders, the workers. the ceo of johnson & johnson said this. this new statement better reflects the way corporations can and should operate today, it affirms the central role operations can play in improving our society, when ceos are committed to meeting the needs of stakeholders.
to what extent does this reflect a political reality where people are getting leery of corporations? >> i say hallelujah to the statement they issued. corporations play a key role in our society but they have so much more influence, and they should be concerned about the people impacted are the decisions they are making. i think this is a long overdue shift, if you will, and incredibly welcome. whether they are bowing to political pressure i cannot say. but i think they are recognizing that these are power players in the world, and they impact people around the world, including workers, including their own customers. that is important and they need to recognize that in a concerted way. way, i think that makes capitalism much stronger, rather than weaker. david: what do you think, genevieve, could it take the sting out of some of the concerns of populism? >> i think most people want to think that.
any business that treats its customer base well, treats its workers well, and treats its shareholders will usually will perform well. you should be looking at all of those areas. what can be concerning for some is when they see corporations and big business becoming politically correct and kind of kowtowing to any kind of political move, what you may corporatione experience, which turns of customers. it is different to listen to all of those constituencies and not get pulled in by who is the loudest. david: are you talking about environmental issues and climate change? beit could be that, it could the gillette razor commercials, the nfl, all the debates there. across the landscape, you see companies it looks like bowing political correctness,
which turns up a lot of customers. we finally got woke into the program. many thanks to genevieve wood and jeanne zaino. headlines about huawei. is responding after the u.s. gave a 90-day reprieve on sanctions. a chinese company says it is still being treated unjustly by the government and says they are opposed by the commerce department's decision to add 46 more affiliates to its list. coming up here, in an historic first, israel has denied permission for two sitting members of congress to visit. we speak with middle east expert martin indyk on where this all leads. live from new york, this is bloomberg. ♪
david: you're watching "balance of power." i'm david westin. notressional visits are usually the stuff of major confrontation, but when representatives rashida tlaib and ilhan omar try to travel to israel, it triggered president trump's urging the government to deny them access. agreedinister netanyahu on the president's recommendation. serve twice as u.s. ambassador to israel and as secretary of state for near east affairs. he is now at the council of foreign relations. bloomberg for today's conversation in chief. thank you for being here. let's go back to this incident of the two congresspeople being disinvited. what are the consequences of this? let's begin with the israeli elections.
another election coming up with prime minister netanyahu losing his majority. is this an issue in israel? martin: highly political for bibi netanyahu who is now facing a reelection, and is depending heavily on donald trump for his reelection. inwants to show that he is what he calls a different league. signage with him trump him at highway, comparing him as something different to the other candidates. he was heavily dependent on trump him a trump's adventure last time around, when he moved the embassy due to insulin, which netanyahu was able to tout as his achievements, but recognize sovereignty in the golan heights. this time around, he is depending on trump, one way or another, to help him. when he took a principled omar,on to deny tlaib and
the ambassador took a principled stance saying any congressperson from the united states is welcome in israel. that they tweeted should not let them in because he is trying to use them as the face of the democratic party, paint them as anti-israel. and rejectedo him them in the country. that then gave them a huge boost. david: is there any constituency within israel yourself, that we should welcome them in, have their say, we will criticize them, back and forth, or has israel moved so far to the right, partly because of demographics, that there is really no substantial constituency for what was historically the liberal party? still a strongs
constituency for it, they're in mind, netanyahu only got 30% of the vote. a kind of coalition politics. far-right parties who would be very much in trump's corner on this issue got another 15% or so. they are short of a majority, and there is a centerleft in israel which supports a liberal point of view, as you put it. of tribe,ics organized around the smaller parties. it tends to divide on that basis, those that support bb, are very strongly in support, and it will make no difference whether they bow to trump or not. is popular in israel for all of the pro-israel things he has done. but this incident highlights a bigger problem that israelis generally understand, which is
that there is a basic principle underpinning foundations for the u.s. israel relationship, which is israel should have bipartisan support, democrats and republicans. ,hat has always been the case and yet, it is changing now. that is very dangerous. trump may be in now but not forever. in the ins a democrat the white house, they may need to be concerned about it. is there an inevitability happening, especially because this is politics and not diplomacy? the golan heights issue, moving of the embassy, historically, and administration would say we want to hold back on things like that as part of a larger agreement for peace in the area. we get those things up, does it become purely political base anddent trump's
2020? martin: israel has always been a political issue in campaigns. what we have been used to is the candidates outbidding each other for who can be more pro-israel. now we have presidential candidates base and 2020? martin: like bernie sanders buttigieg,like pete are criticizing israel, taking their distance, even talking cutting aid. that was previously completely untouchable as a political issue. that is reflecting this way in cutting aid. thatwhich israel has become a partisan issue. there is a 40-point difference between support for israel in the democratic and republican party. it was only a matter of time before the democrats elected representatives, started positioning themselves according to wear their base is coming from. you are right, david, it all comes back to the issue of palestinians and israel seen as either trying to make peace with them -- going back to the days
tremendous support in the the -- or seen as some in u.s., as the occupying power. david: there was a day when israel felt some constrained by other arab countries in the region. i wonder if there is a shift in saudi arabia which has freedom up, they don't need to worry about the palestinians the way they did 30 years ago. martin: it actually starts in a different place. the peace process itself, which i was very involved, presided over the final round of what i consider to be the end of the process, haspeace basically failed. it has not been possible to reinvent it. team has spent two and a half years and still does not have a plan. on the other hand is iran. iran imposes an
existential threat to israel and the other gulf monarchies. that threat provides a common interest. are far lessabs concerned about the palestinians than they are about iran, which is a real common danger to them. as a consequence of that common are kind ofe arabs putting the palestinian issue to the side and trying to find ways to work with israel mostly under to work with israel mostly under the table, but increasingly, engaging with them more directly , because they have a common to work with israel mostly under the table, but increasingly, engaging with them more directly , because they have a common interest in countering iran's threat. david: is u.s. influence in the region diminished, and maybe because we don't need oil months we needed it. martin: it has dramatically diminished from the heyday of henry kissinger's initial forays into the middle east, laying the
foundation for the peace process in the 1970's. america has dominated the region since then. in recent years, the combination you suggest of reduced importance to the united states of middle eastern oil because we are now the largest oil exporter in the world, combined with a weariness in the united states, a sense that our military interventions in the region have really not benefited the united states. we have wasted a huge amount of blood and treasure for no clear gain. this disillusionment with the west combined with a sense that the rise of china and asia is more important to our strategic means thehese days, united states is less engaged but also has become less effective. we have not been able to move the peace process forward. we screwed up royally in iraq. we have dented our influence in
this is "balance of power" on bloomberg television. i'm david westin. republicans tell us time and again a democrats are pushing socialism in the 2020 elections, but you could not prove that by what is being said by some of the democratic candidates as they appear at fundraisers in the hampton. we welcome the political editor for bloomberg news. these stories are extraordinary, a great story that you edited about what is going on, starting with kamala harris. billions of dollars to become president, and no matter how much you want to
serve the middle class or the working class, or poor people in the country, you don't get the job unless you can collect billions of dollars from people. if you collected one dollar from every person in the country, that only gets you a third of the way there. so they have to go to where the money is. in august, it is in cape cod, ineyard. v cory booker appeared at bon jovi's home. we had tw reporters out there last night watching the scene up, steve's pulling madden showing up in a black convertible, lots of designer clothes all over the place, and then there is kamala harris with his great comment, i believe in capitalism. david: she must. same time, not all the candidates were mentioned.
i didn't see elizabeth warren, bernie sanders. is that a coincidence? >> not at all. they are deliberately missing in the primary season on small dollar funding, using different sites to collect small dollar donors. elizabeth warren is doing fairly well, bernie sanders is, too, from his leftover popularity in 2016. warren,h is, elizabeth if she is the democratic nominee, will start to raise money the way that others are now. she does not want to unilaterally disarm. david: they are all up against donald trump, how is he doing? 0 ok. the polls are showing more weakness as we move on. he said his biggest selling point is the economy. with these warning signs going off that the economy may go south before the election, that could leave him extremely vulnerable. there was a fox news poll that democratictop four
candidates could be him in the general. it is still a year away and a lot could happen. david: all depends on the yield curve. it will determine the next election. i never thought i would say words like that. benjaminsonto wendy . and inclusive interview with eric rosengren on bloomberg television and radio. that is coming up at 1:30. sign up for the balance of power newsletter at bloomberg.com. live from new york, this is bloomberg. ♪
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♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. ritika: i'm ritika gupta with bloomberg first word news. present trump is reiterating his criticism of the federal reserve from what he calls "the horrendous lack of vision" by
chairman jay powell. on twitter, he urged the fed to cut interest rates by at least one percentage points to help the world's economy, adding the economy is very strong and will its are trying to to be bad for purposes of the 2020 election. immigrants held in u.s. detention facilities are suing, demanding adequate medical care and treatment and accommodations for disabilities. in the lawsuit come immigrants say they are placed in isolation as punishment and denied recommended medical treatment. the lawsuit cites problems at facilities including a privately run center in california and a county jail in colorado. in kashmirected today after some security restrictions were lifted. officials say two civilians were killed. schools are set to open after a two vix security lockdown but remain closed because of violence.