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tv   Bloomberg Markets Americas  Bloomberg  August 26, 2019 10:00am-11:01am EDT

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it's 10:00 a.m. in new york, 3:00 p.m. in london, and 30 minutes into the trading session in the united states. from new york, i'm vonnie quinn. ."lcome to "bloomberg markets here in the u.s., we are seeing a nice bounce on china headlines. the s&p 500 is still beneath 2900 today, up three quarters of. 1%. the 10 year yield down to ash three quarters of 1% -- up three quarters of 1%. the 10 year yield is at 1.52%. weakness for the renminbi. we will talk about that any moment, and perhaps on the flipside, you could say that again is trading at 106.01. it has been strengthening as these china trade talks continue to dominate the narrative. in europe, britain is closed for a holiday. the stoxx 600 down just fractionally, although some indices are higher.
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the euro is trading weaker by 1/4 of 1% versus the u.s. dollar. brent is close to $60 a barrel. gold futures are trading higher again, all the way up to $ 1543.50 an ounce. trade headlines and tweets have been whipped sawing -- have been ing markets the last few days. joining us with the latest from washington is shawn donnan. what difficult to know if president trump says makes a difference to china and vice versa. is there a standoff happening right now? shawn: there's been a standoff happening now for some time. all summer we've been waiting to see a resumption of substantive talks between the two sides. those talks broke down in may, and we've had some flirtations,
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some truces, some more tariffs over the summer. this morning, trump again muddying the waters by insisting that there were new contacts between the u.s. and china, and that things were going to go very well. to spin thesetry things is going well. it is never clear whether he his escalation or actual substantive talks. we are going to hear from him shortly at a press conference out of the g7, and that is the question at the top of everyone's mind. what exactly does he mean? what are these talks that he's referencing?the chinese very quickly said they didn't know what he was talking about. the senior editor in the state media tweeting out he had heard there were no new calls. at the same time, we know there have been working level talks
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going on for a few weeks now, and he may simply have been referring to those. vonnie: at the same time, we have a deal announced by president trump with japanese leader of a -- japanese leader abe. is this in part a signal to the chinese that deals can get done, and we are doing them happily with japan? shawn: the first thing to keep in mind is that the deal announced over the weekend was a deal in principle. there is an agreement only on what the contours of what the isl would be, and that deal actually not an enormous win for the president in many ways. while he would settle one front in his trade wars by getting to peace with japan, the type of agricultural market access they are talking about is really only the agricultural market access negotiated by the obama administration when it was
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putting together the transpacific partnership. japan has said that is a very clear line in the sand on these talks. we don't have that final deal yet. there is a sense, clearly, that president trump wants to nail some wins. he wants to get some deals done as proof of concept for his trade policies. the fact is he has always portrayed these tariffs as a way to get better trade deals for america. if those don't come next year, it is going to be hard for him to make the case to the american voters that his trade policy has delivered. vonnie: what is the incentive for muddying the waters? and it is not just president trump, really. china, through the state media, is saying there's not really anything progressing, but that is not exactly a clarification. it's hard to know if that's the line from xi jinping.
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it doesn't have to be attributed to him. essentially it is muddying the waters on both sides. what is the incentive? shawn: i'm not sure what the incentive is exactly. one thing we do know is that president trump has reacted in the past to swings in the market, has tweeted, has spoken out when we seen the market stumble and tried to portray a more positive spin on these talks. that is always a possible motivation. we have certainly seen that in the markets today and their reaction to trump's comments on these possible talks. from the chinese side, we heard over the weekend liu he, the top chinese negotiator, say that china would always approach these negotiations calmly and would hope for a calm resolution. what he seemed to be saying was that he hoped the u.s. side would do the same, but what president trump seems to have
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read into those comments is a sort of concession from the chinese side of sorts, so it's all very hard to figure out. it's not just markets getting whipsawed here. reporters as well. substantively, not much has moved in the last few days other than these new tariffs imposed friday by the chinese side and also by the u.s. side. vonnie: shawn, thank you. we appreciate that you don't -- you don't mind being whipsawed every day on the news. let's bring in now patrick chief strategist with silvercrest asset management. renminbi trading at least 11
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year low. what does that say to you? from hourf you look to hour, day today, there will be plenty of headlines that will cause the markets to jump around. but take a step back, and i see two things. the first is that there has been a steady escalation in tariffs between the united states and china, and also a steady escalation in the rhetoric, which makes it a bit hard to see how they come together, how, since may, when it looks like a deal might come together, how they spiral from this escalation and get talking seriously again about a deal. there are people who will say it is not really a trade war. it is a geopolitical conflict between the united states and china. there are multiple aspects to the relationship where there are points of conflict, but to jump
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a little together in that way makes it harder to resolve any one issue on the table. the other thing going on as we see the renminbi depreciating in a way that does blunt some of the tariffs, but also creates some challenges for the chinese in terms of repayment of debt. vonnie: it's only a few sessions aboutat we were wondering the seven level being reached, and now we are all the way up at 7.16. and markets know that all could change on a dime given these presidents, right? patrick: it could come up at over the past couple of months, not everything that has been tweeted is coming into effect fully. not every threat has been realized. there has been a steady increase in tariffs and rhetoric. it is difficult to see how they are going to come together.
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i think we need to be careful about reacting immediately to a "all businesses are ordered out of china immediately" and say that is no u.s. policy. but again, there have been an increasing number of tariffs that create business uncertainty. may be the impact of these tariffs is not necessarily huge on the u.s. economy, not necessarily decisive in terms of tipping us into a recession, but they come at a time when business investment in the second quarter was down for the first quarter in a long time. there's a lot of business uncertainty. the surveys of businesses suggest that businesses are concerned about tariff uncertainty, not just the ones in place, but what could be tweeted next and how do they plan for that. vonnie: exactly, and businesses in europe watching closely as well because of the implications secondarily for them.
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put in much the top table of chinese commodity companies report this week. it is probably the first time we will get some insight into how china is being affected by the trade war. what will they say? patrick:patrick: china's economy was slowing already, with or without a trade war. they have problems of overinvestment, too easy credit, bad debt. there's a big drag on the chinese economy, and the trade war doesn't help. one way is by shining a light on these issues. the reason people are talking about, for instance, the number of chinese companies having dollar debt that is outstanding and may have a difficult time repaying that, especially if the renminbi depreciates, is because of the trade tensions. maybe it would flow under the radar screen if that wasn't the case. so for the chinese, the trade conflict doesn't help, but it is not the end-all and be-all.
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if there was a trade deal tomorrow that we would all hail is a solution, it wouldn't solve a lot of the problems slowing down china's economy. vonnie: where do we see the impact of trade on the chinese economy, then? accepting that the economy is slowing pretty quickly anyway, extra layoff? patrick:. -- patrick: not really. possibly only margin. it could knock about 2% off of s&p 500 earnings-per-share for the year. that is significant because s&p 500 earnings-per-share is only up to percent this year year on year. it is marginal, but the real impact is the ripple effects. the uncertainty that is created,
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the sense of what is going to come next. and it is not just china. there are multiple fronts to the trade conflict the united states is in right now. we are only one tweet away from another source of uncertainty. vonnie: patrick chovanec, hold it right there. you are staying with us. patrick chovanec of silvercrest is staying with us. presidentting for the and president micron of france to give a news conference. first, let's -- in president macron of france to give a news conference. first let's go to renita young with first word news. capital investment means luke warm in the midst of slower global growth. france's president emmanuel pulled a surprise on his g7 guests by end fighting --
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by inviting iran's foreign minister. president trump said it was too soon for him to meet with the iranian official. once the trump next summit to be held at his resort in miami. it is set to be held in the u.s. in 2020, and the president says there is no place that could come close to competing with his resort. no finals decision has been made. the drug industry may get a sign of how much it will cost to resolve their legal liability for the opioid at that united states. in oklahoma today, a judge will rule whether johnson & johnson created a public nuisance by duping doctors into overprescribing opioid-based medications. oklahoma has sued for as much as $17.5 billion to recover costs. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.
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i'm renita young. this is bloomberg. you.e: renita, thank let's get a check on u.s. markets. we saw a nice bounce at the beginning of the session after the president said things were going well with china. the dow up in the s&p up a half of 1%. dish network is the best performer in the s&p 500 on an upgrade. we have some of the pharmaceutical companies up as well on a deal with bristol-myers, up 3%, celgene up 3%, and so on. we are keeping an eye on the g7 finale in france. we are waiting for president macron and president trump to speak together at a news conference. we will be live there when it happens. this is bloomberg. ♪
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♪ vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." let's get a check now on global markets with taylor riggs. taylor: we are getting quite a bit of a rebound. a friday we had a four -- 4.4% decline in the stocks. you are seeing the trade sentiment reversed today, getting some green on the screen. europe, though, some of the markets are closed. europe stocks off to tents of 1%. as we know, there's not going to be a lot of moves in either direction until you get a big resolution on trade. over the months, we are bouncing ofund 2850, which has sort provided some key support levels down here. around thatouncing
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level, so start to take a look for any sort of resolution to see if we can move significantly higher or lower from here, depending on what happens. as we talk about big tech, there's a great story in terms of who is affected by trade. apple, the big one we know about, friday lost $44 billion of market cap given the tweet from the president saying he was ordering companies to look at different manufacturing plans outside of china. apple has 380 supplier factories in china. clearly china is their biggest, but that today is reversing some tension figures. come into my terminal here at gtv . i just want to wrap up with where we are. friday, wet that on have seen our fourth straight week of losses for all of the major averages. if we were to see another loss this week, we haven't seen five
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straight weeks of declines since 2011. this is another big move that we are looking at. vonnie: taylor riggs with a market check there, thank you. with patrickow chovanec, silvercrest asset management chief strategist. we are waiting for the wrap up to the g7, emmanuel macron and president trump speaking in a moment. let's talk about europe. we had some floating of the idea of fiscal stimulus in germany at the end of last week, with the bundesbank saying we don't think that's necessary, and the federal reserve. what is happening in germany? is the slow down so imminent and desperate that it will affect the rest of europe? patrick: they are on the edge of recession, and have been for the past several quarters. italy was in recession and bounced back a little bit. a lot of it is actually export driven. with china has to do
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. china's investment boom drove a lot of capital goods purchases, machinery and that kind of thing from germany. that's slowed down a lot, so they are feeling the impact of the slow down. president trump complains about low interest rates in europe, and the problem's monetary policy is really the only lever they have practically because germany is reluctant to stimulate, use fiscal stimulus to boost demand. vonnie: does germany have to loosen up on that rule? obviously it would take a massive change of constitution, but does germany need to declare some type of emergency? patrick: germans need to spend more, commensurate with what they produce. that's an imbalanced, like the chinese imbalance, that's been weighing on the global economy. there's missing demand. whether that comes from the
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government spending the money are finding ways to get the german consumer more active, it is a structural shift that needs to take place. it is interesting, this overreliance on monetary policy is not unique to europe. japan has been overland on monetary policy even as they stifle consumption, and the u.s. , there's very little likelihood the economy stumbles on any kind of infrastructure package passing given the political conflict in d.c., so we are looking to the fed to save the day. vonnie: what is unique about europe is that, in germany's case, the bundesbank is saying don't. tell us where silvercrest is active right now. patrick: first of all, we don't have any kind of preferred investment because we manage entire portfolios. one thing we are looking at right now is the fact that
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people are jittery about the market. people are jittery about the cycleect of the ending. but they are paying way too much for safe harbors. treasuryn the 10 year rate go down to where it's at. we've also seen this huge number of negative yielding bonds out there. market the fact that the seems rather bubbly given all the uncertainty out there, the fact is if you look at the relative valuations of equity versus risk-free investment or safe harbors, it favors staying out there and exposed. the fact is the equity risk premium, the amount you are being paid to hold equities, to take risk and go with the ups and downs of the market, is around 6%, which is unusually
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high the fact is you are being paid for all of this heartache that's out there. vonnie: what are you telling your portfolio managers to do your clients to do? on the one hand, you say safe havens are overvalued, but what do you do otherwise? patrick: you have to decide exactly what kind of risk you can afford to take. if you are concerned about where your portfolio is going to be a year from now, and you need a certain amount to meet your commitments, that's very different from saying can wait five years and ride the ups and downs. everyone has a mix of short-term commitments they have versus the ability to write things out. the point we are making is that in the short run, the economy is wobbly. there's a lot of uncertainty out there, and it is possible we might see the end of the cycle. we are seeing europe edge towards recession. but seeking a safe harbor is very expensive right now, so you
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only want to do that, you only want to run away from risk to you really can't afford to take risk. vonnie: patrick, where do you like in emerging markets? obviously they are massively volatile, but you may be seeing some value somewhere. patrick: first of all, people talk about emerging markets like it is one thing. it is not. there are many different kinds of risks associated with it. i think you have to go with people who really have deep knowledge of the countries they are investing in, and have an investment thesis along those lines. the thing i like most about emerging markets right now is diversification risk. there might be parts of the world that are risky. they might have their own risk, but they are not risks that are correlated, that are linked to the kind of risks we might be concerned about with your overall put folio, which is -- your overall portfolio.
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there are things that are linked to that, but there are things not links to that. , likef they appear risky the middle east, for instance, there are different kinds of risks. you want to be out there actively seeking to expose yourself to different kinds of risk rather than be clump along a certain kind of line. vonnie: so get into some of the details for us. we know they are not one bagele -- one big monolith. currency is up 6% versus the u.s. dollar. what do you do in a scenario like that? patrick: one big fear that was dominating emerging markets six months ago or so was higher u.s. interest rates and how that would soak up dollar liquidity. you had countries like argentina, south africa, or turkey really feeling the pinch because of that. that's gone away now, hasn't it? so the risk has shifted more towards countries that face slow down risk from, for instance,
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their exposure to china. there are other emerging markets like peru selling copper for australia, not an emerging market, but a unique market, selling iron ore. the slow down risk has replaced the higher interest rate risk now. vonnie: patrick come always great speaking with you. patrick chovanec, silvercrest asset management chief strategist. on are awaiting the trump/macr press conference to wrap up the g7. markets are pretty much higher, including in the u.s., up about 4/10 of 1% for the majors right now. this is bloomberg. ♪
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♪ vonnie: live from new york, on vonnie quinn. this is "bloomberg markets." we are awaiting the wrapup news conference from the g7 in the
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south of france. president macron and president trump will be speaking. we will go there when it happens. let's check in on the bloomberg first word news with renita young. renita: president trump says the prospects for a trade deal with china are better than they've been since negotiations started last year. the president said china called and wanted to resume talks. a top newspaper editor in beijing is questioning the president's version of events. president trump and japan's prime minister shinzo abe are hoping to make their trade agreement a done deal next month. that's when they are planning a signing ceremony. japan will cut tariffs on american i've are cultural products. that should help america american agricultural products. american agricultural products. that should help american farmers hurt by the trade war with china. secondary general antonio guterres urged leaders who will
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be attending a summit in new york next month to cut greenhouse gas emissions by more than they promised in the paris climate accord. speaking at the g7 summit in france today, he said, "we are much worse than we were doing in paris." in mozambique, residents are still rebuilding from two storms that affected about 3 million people and left 200,000 homeless. officials are urging residents of the southern african country to resettle on higher land that is less susceptible to flooding. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. vonnie: thank you. that's bring in now steve desantis -- with us steven research, jefferies
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analyst. where do we? steven: i think a lot of companies have to reevaluate their plans for early 2020. so numbers are going to start to come down. that's generally the case in september and october, so with that come of stocks usually follow that. i do think that when we get a rebound in the fourth quarter, and i do think we get a rebound in the fourth quarter, you start to see a little bit of a shift in terms of what's been working and what's going to work. so definitely tech and the more secular growth stories were outperforming early on the year. i think this may potential he created an opportunity for cyclicals to bounce back in the fourth quarter and into 2020. vonnie: we were just
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talking about safe havens a moment ago, and i guess they are well overvalued. do you agree? steven: i do think they are overvalued. there's lots of money coming into low vol, dividend oriented strategies. we have a preference for yield oriented investing. vonnie: all right. we are going to leave it there. we have jefferies' steven desanctis, but we will go to the south of france, where the presidents are about to speak. [speaking in french] we've beenn: discussing for two days now. first of all, i would like to thank president trump and all the heads of state and for the extremely productive work and very
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productive discussions we've had since saturday evening together. nervousnesslot of at the outset, a lot of ,xpectations, a lot of tensions and we've heard about a lot of conflict, and i can say what we are really keen on was to convey a positive and joint message following our discussions on several topics. we haven't negotiated a very long text. instead, you will get a one page that covers some of the key that were addressed. we have decided to hold this joint conference. i'm going to give the floor to
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, and president trump and the first lady will proceed with their own press conference to the american press . i just wanted to sum up the different items on which we have agreed, and the topics on which we have made headway. economy,ity, digital amongst others. we wanted to hold this joint conference together because next year, it is the united states of america that will host the g7 pass it ontoe will president trump, so that is why we are here together. for the last two days, we have worked a lot together on several common points. we have a lot of things in common, but one thing we have in common with president trump's we don't like to waste our time,
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and we like to achieve concrete results and provide momentum to the work. as soon as the president arrived, we said -- we set in a one-to-one lunch with each other. it was an interesting conversation that we had together. from that point onward, we set the pace and kept the ball rolling to be as efficient as possible to the very end. there are a few things expected from all the countries. as far as iran is concerned, president trump and myself have had discussions in the last few weeks, particularly the last couple of days, and agreed that iran needs to comply with its nuclear obligations and have responsible behavior in the gulf, and work with us. there were two very clear things to us. iran should never have nuclear should notd it
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threaten the stability of the region. france has taken a lot of different initiatives and have always informed president trump on them to be able to get the technical means to move forward because he decisions the u.s. has taken in the last few months have put a lot of pressure and have put it to send a situation where it is necessary to -- have put us in a situation where it is necessary to improve the security of the region. so we have coordinated our efforts and reached a decision to bring together the foreign iran in a meeting with the french foreign minister set, a roadmap has been but nothing is absolutely set in stone, as we will have to move ahead together to find an outcome. this morning, president rouhani said that he was prepared to meet any political leaders in the interest of his country, and that is what i told the
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minister. this is what i mentioned to president rouhani on the phone as well, that if he would agree to a meeting with president trump, my conviction was an agreement can be met. we know the terms. we know the objective. we have to just sit around the table and make that happen. so i hope that in the next few weeks, we will be able to meeting we have just mentioned between president rouhani and president trump, myself, and those who have a role to play in nuclear agreements that will also be fully involved. i think that this meeting is very important, and the last few days have clarified the situation. a lot of work has been done between our ministers. i would like to thank our ministers, who have been totally
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involved in these discussions, and have set the stage for these discussions and for an agreement. of course, i want to be very cautious and very modest, but i lead to a is going to solution. the discussions we had saturday afternoon and at saturday dinner have been very fruitful, and our purpose is to ensure the stability of the region. the idea is to make sure that iran doesn't get nuclear weapons in the long-term. as far as trade is concerned, we've also heard a lot of analysis and observations. we can say that our discussions have clarified what what themate and united states feels is an unfair situation.
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we have international rules that govern international trade. and this one-page document, we said that it is very good to have a single organization that governs international trade, but so far, this collective body has not been very efficient in raising trade barriers. it has not been efficient enough in solving problems when they occur. it has not been efficient enough in protecting the intellectual property of our industries. discussions are underway, and particular between president trump and president xi. the veryeen, even in recent past, that an agreement can be reached, so we want to changem the desire to the rules that govern international trade and revamp them so that no one is dealt with unfairly.
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this is something we need to work on together. nervousness. of there are some very powerful economic players. about this digital tax that france has imposed? well, we have reached a very good agreement, and thanks to the solid work that has been done by our nesters that have helped us to make progress. in our economy, we have a very unfair situation were some don't pay taxes, so there is unfair competition with other players. these large multinational players that don't pay taxes, which leads to significant instability on the economic front. it is not fair. of course, we are pushing for international rules on this. at the european level, 10
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countries, france, italy, even the u.k. is getting ready to do so. it has decided to do something at the national level, but it is not against any company in particular. it is just to solve the problem from, in fact, a lot of french companies being affected by this. some of you have probably heard me say a few months ago that .his is only to find a solution the aim ultimately is to find an agreement internationally by 2020 two revamp the international tax system within the framework to combat harmful trade practices. tax, wethis digital have worked a lot financially as well to overcome the hurdles. we will work on a multilateral basis to find a solution together.
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the day international tax exists on digital services, france would do away with its tax. everything that has already been the french tax system will be reimbursed. so the idea is that we need to in order togreement address joint international problems. the situation right now is very negative, and the international tax system definitely needs to be modernized. and i think we have a spirit of cooperation on this. after libya, syria, north korea, havekong, you will see we made considerable headway in the , as far as the
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-- in the spirit of unity. as far as the brazilian region, we have taken a very ambitious initiative that we were presented this morning after .aving discussed this i don't want to go into the details, but i just wanted to highlight a few things i just mentioned. i just wanted to say that we worked together hand-in-hand with president trump over these two days. during this g7, and i would like to thank all of my colleagues for this, we have managed to reach convergence at unprecedented levels on several issues. we are going to continue this work in the weeks and months to ,ollow, with a lot of energy and north korea knows how strongly president trump is committed to this issue. there's also the agreement with
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china, and we are going to work hand-in-hand on all of the different issues. i would like to thank you, presented trump, for your involvement the last couple of days. i would like to thank your first lady, who was by your side. she has honored us in our country. she knows how popular she is in our country. president trump will be hosting the g7 summit next year, so i'm going to give him the floor so that he can tell us how you intend to organize the g7. . i will be there by your side with the same will and determination, and the same desire for unity. thank you. [applause] well, i want to thank you very much. more important than anything, i wanted to come up here to say because the job that president by theand your wife,
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way, who is a great lady, bridget -- we would like to thank bridget. she has been spectacular. spent a tremendous amount of time with melania, and some of the wives that came in. they had a great tour of the area, and it is a beautiful area , but i want to thank you very much for the incredible job you did. this is a truly successful g7. there was tremendous unity. it was great unity. sometimes a little bit of false reporting, but i will tell you we would have stayed for another hour. nobody wanted to leave. we were a couple she a lot, but i think more importantly, we were getting along very well -- we were accomplishing a lot, but i think more importantly, we were getting along very well. you have been a spectacular leader on this. i want to thank you, and i want to thank the great country of france. thank you very much. [applause] pres. macron: thank you. and with that, i
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think -- excuse me. pres. macron: i did what to say, we will take two questions from each side. i will leave the room in order for you to follow up. don't want: i just to have the president of france france -- president of standing here while i'm answering these absolutely wonderful questions. [laughter] pres. trump: why don't we start with a question for france. and. macron: about g7 franco-american relations. -- andrump: and a manual emmanuel will have his questions after this. to france. france. macron, chinant was not on the official agenda, but it was certainly a big part
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of discussions here at the g7. the tradencerned that war that exists now between the united states and china could harm the global economy? if you are, did you talk to president trump about that? are you also concerned that if china's current trade practices go unchecked, that a decade from now, we could be in a very terrible situation? on this subject, we obviously had lengthy discussions. during the session on the world economy yesterday morning, on both subjects. the discussion is underway between china and united states of america, obviously, as we clearly see, creates uncertainty which disturbs markets and investors, and during the negotiations were, will create tensions. we saw this on different stock markets with which we are
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familiar. now the question is to know what the result of these discussions will be. it was why we considered so important an agreement be found between the two greatest economic powers in the world. president trump clearly showed us his willingness to arrive at an agreement. we saw just a few hours ago the very positive and encouraging message that could be distilled from this. our deep wish is for an agreement to be found within the united states and china concerning trade because i think doubt be something positive for everyone. neither the united states nor china is economically or industrially naive. it has to be a balanced agreement that would be good for anyone. we will be vigilant to see that it is good for the whole world. in that context, our different parameters will be taken on board. that was one of the subjects of our discussion. what is bad for the world
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economy is uncertainty, and the quicker and agreement is arrived at, the quicker that uncertainty will dissipate. that's what we discussed yesterday, and that is the american president's wish. in terms of trade practices, i said this earlier. for me, the most effective way forward, and the most strategic way forward in settling our trade relations with china is to develop trade, but also to ensure that that trade is part of international trade rules. the problems we sometimes had we are very familiar with. the chinese economy is a major economy where there's been lots of investment from the united states, european countries, canada and japan. the problem is respecting inlets will property, dealing with excess capacity -- respecting
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intellectual property, dealing with excess capacity, and the ability to deal rapidly with countries who may have unfair situations. we are obliged to see that when this type of trade happens outside of wto rules, we are not properly protected. when following double teal rules -- following wto rules, we have not been protected on the subject. we discussed this morning to accelerate with a very real agenda the rules of rule trade so that everyone can have free and fair trade -- the rules of free trade so that everyone can have free and fair trade. issues can be settled in an international framework which we wish profoundly to change. we and our different ministers are going to share these political goals. the way to deal with the practice, as you have mentioned,
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certainly positive agreements will be arrived at, and also the renewal of our international trade rules, as we said yesterday morning. >> president trump, are you satisfied with how far the proposed wto reforms will go? pres. trump: no, i am not. we are getting there. we are getting there. >> do you believe that china is sincere about what it said this morning, or do you think they are just trying to calm the markets and play for time? our sister network, the foxbusiness network, has been told by chinese sources they have no plans on going back to where they were in terms of negotiations this spring on intellectual property, forced technology transfer, ownership. pres. trump: we will see, john. >> so you trust that they are sincere? pres. trump: i do. i think they want to make a deal very badly. i think that was elevated last night, very late in the night. i see an alert, or as you would call it, breaking news.
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it was that the vice chairman -- we are not talking about somebody from china at a low level -- the vice chairman of china came out that he wants to see a deal made. he wanted to be made under calm conditions. i agree with him on that. china has taken a very hard hit over the last number of months. they've lost 3 million jobs. it will be much more than 3 million jobs. the chain is breaking up like nobody's seen before. once that happens, it is very hard to put it back together. i think they very much want to make a deal. the longer they wait, the harder it is to put it back, if it can be put back at all, so i believe they want to do a deal. the tariffs have hit them very hard in a fairly short period of time. the united states will have collected over $100 billion in tariffs. and i say it again, the reporters, the media failed to acknowledge it, but if you look
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at the goods coming in from china -- we are talking about china, not other countries -- that power is only good for so long. they have manipulated their currency. they've devalued their currency and put a lot of cash into the system. because of that, the prices have not gone up, or when they have gone up, it's been very little because they want to keep people working. if the prices go up, they cannot keep people working. it is a brilliant market, the world market. a lot of markets are brilliant. frankly, i think that china cannot -- i don't know, maybe they can. maybe they can't. i don't think they can do that. i think they are very smart. is a veryesident xi brilliant leader who happens to be a brilliant man. he can't loose 3 million jobs in a short period of time. it is going to be magnified many
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times over and break down the chinese system. maybe they want to and maybe they don't come up but i think they want to make a deal. i'm not sure they have a choice. i don't say that as a threat. in the meantime, the united states, which has never willcted $0.10 from china, be over $100 billion in tariffs. so i think they want to make a deal very badly. go ahead. >> [speaking in french] you've just declared that you created the conditions for a meeting between president trump and president rouhani. does that mean that france, for instance, might be a mediator in that meeting? more concretely, what did you discuss in terms of that possible agreement with iran? then a question for mr. trump. solve theady to
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american sanctions on iranian oil experts? would you be ready to meet president romney? thank you -- president rouhani? thank you. pres. macron: on the first question, the terms of the discussion are quite simple. 2015,eement was signed in on july 14. we call it the jcpoa. that agreement set forth guarantees for the international that iran including would no longer enrich uranium over a certain period of time. i'm some love buying this -- i'm simplifying this. in exchange for large investment, mostly by the united states. that agreement had a twofold advantage. security, andand also reopening economies, which was good for iran.
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this agreement also had drawbacks and shortcomings. 2015 wereotiators in the most determined that france was the country that hesitated the most on disagreement because we needed as many guarantees as possible. president trump during his campaign made a commitment to those who voted for him to me born demanding but asked to be more demanding because he believes this agreement was insufficient -- voted for him to be more demanding because he believes this agreement was insufficient. the situation very clearly is the positive side of things. from one standpoint, it is creating pressure and the necessary conditions to improve the terms of the agreement. on the other hand, it is leading where theys in iran, say we have signed the agreement, but those who signed it on not respecting the terms,
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and they are starting to enrich uranium. they are going to go further jcpoa.and leave the where are we going with this? we need to be sure iran will never get a nuclear weapon and that they will be no flareups in the region. what we discussed very concretely was to see how we could improve, very considerably , or really impact build a new nuclear agreement with iran. president trump was very clear, saying we would need a much longer timeframe for it, that there needed to be surveillance of many more sides. this is how we can build a much further reaching agreement in terms of our security demands. , we need to hand convince the iranians to go in that direction, and we can do that if we give them economic compensation in some form. if we make some movement in terms of lines of credit or
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reopening certain economic sectors. i can't tell you today publicly more about this because anything i will tell you in detail will jeopardize the conversations we are going to have come up at this is basically what we are discussing. on the basis of our initiative, a japaneseo initiative, we agreed on a strategic goal, and i want is to go forward with this framework. at a given point in time, there will have to be a meeting between the american and iranian presidents. i wish that in coming weeks, such a meeting would take place. france would play a role, together with the other signatories who are partners in the g7. but after that, we will need to create the necessary conditions because we will have the necessary visibility for this agreement to be signed and sealed, and for this meeting between the two presidents to take place. issues rather talk about
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rather than mediation because at the end of the day, sometimes we say we don't agree on methods, but i want to get there. i want to have an agreement. i think there's been a true change. this morning, president rouhani showed himself to be up into a meeting happening, and president trump has been saying that he's put forward sanctions but is ready to have a meeting to make it deal. i think we are making progress. i want this meeting to happen, and i want there to be an agreement between the united states and iran, and france will play a role, along with all of the other signatory powers and permanent numbers of the security council. iran is a country that is not the same country that it was to and a half years ago when i came into office. state ofthe number one terror throughout the world. there were 18 sites of confliction in my first week

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