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tv   Bloomberg Markets The Trump Economy  Bloomberg  July 7, 2017 1:00pm-2:00pm EDT

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met for over two hours today. anticipated sit down, the two countries have reached an agreement for cease-fire and southwest syria. a dozen power plants were breached by hackers in a foreign government in the chief says act as russia sparking major concerns in washington and across the country. and retired u.s. attorney general joins me to break down the latest in the g-20. let's go to the g-20 summit in germany and the two plus hour meeting between trump and president clinton. putin.sident clinto d.c. cirilli is in than two hours.
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what do we know about the contents of that meeting? >> that is exactly what we are waiting for now. the whole summit is on tenterhooks trying to learn what was discussed. we were initially expecting only half an hour and when you factor in translation, that's basically 15 minutes of conversation but it clearly went much longer than that. that in of itself is a very interesting development and you sort of do wonder, this is probably the longest meeting the president has taken since taking office. .e should know more mcmaster is always there. we will have more details. we had the handshake between these two leaders. i think it's going very well.
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great point. there was plenty to discuss. because of the magnitude of issues. the specter that's been hanging over the administration, allegations that russia colluded andack into our election how much pressure donald trump was under to address that head on. embracing nato publicly for the first time. those are all very meaty topics. how much of washington has the president left behind? iraq. up to the war in
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>> when he returns, he will have to deal with the health care crisis and the legislative battle looming. his fbi director nominee is set to testify before the senate next week. and the growing threat of a nuclear north korea. lastedeting significantly longer than anyone anticipated. is that in of itself something that should be definitely noted. in terms of if he's pushing back on whether russia colluded, he gave some of his strongest in warsaw butat he said nobody knows for sure. contrast ofect what public officials have testified publicly. in terms of how this is being
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thiszed, i will say that will be dissected every which way. gaffes. political david: you've been watching this meeting happen on the sideline. a live shot of him going to a concert. after the testing of that missile on july 4. >> it is extremely eye-catching. it's important to remember there are huge wide-ranging conversations going on here. there is no agreement on the communique right now.
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unlike a big shuttle. we might be seeing the same dynamic emerging here. free and fair trade. even that doesn't seem to have been enough to get unity or to get the u.s. to sign up to the language on trade. it will be a very important and interesting story to watch. hanging over the summit as well. is extremelyting important. trade could also emerge outside of the sort of u.s. russia cycle drama. trade will be the most important story here this weekend. you have covered these
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and they can be very boring things. this is unlike anything we have seen in the past. reclaiming the soul of the west, how does this differ from those in the past? i think that john has it exactly right. the marquis television and headline drama will be the psychodrama between putin and trump. the issue of trade is a real one. the issue of what kind of policy he's putting forward. that is the specter that hangs over europe. on the flipside of that, we have the brexit with eu forging ahead. when he comes back to washington, he comes back to is almost there
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getting people over the line. he's got trouble abroad. when he gets home, he's got huge see howat will really the american people view how he's done and back at home. megan murphy joining me here in new york. andks are extending gains taylor riggs is here with the latest. taylor: you're seeing green on the screen. we see followthrough here in the afternoon. the dow jones up over 100 basis points. i'm speaking in yield terms here. 100 points. the nasdaq here over 1%. as these major averages rise, take a look to the terminal
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because it shows a broad-based support we are seeing under that function. it shows all the sectors are green. i will hit gold here because we are on that. look at where gold stands. the fourth weekly decline, we see that drop for the week. that is the general commodity sector down with gold, silver, and bond. >> we appreciate the market update this afternoon. fellow at foreign policy, i will ask what he's watching. we'll get his thoughts on global security infrastructure. this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. >> the highly anticipated meeting between president trump and russian president vladimir putin, mr. trump says he's looking forward to a good relationship with putin. president trump: we had very good talks. that will continue. we look forward to a lot of very positive things happening. russia and the united states. >> overshadowed by allegations
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of russian meddling in the election. president trump admitted pressure might've played a role but other countries could've also been involved. paul volcker has been worried that the trump administration will undermine the rules that bear his name. find a morehey can efficient way, god bless them. the treasury secretary has proposed the rules be simplified. attorney general jeff sessions is visiting guantanamo bay prison today. sessions has long been a vocal supporter of continued use of guantanamo, calling it a fine place for holding these kind of dangerous criminals. three years after a russian missile brought down a flight, passengers and crew killed, they are still waiting for justice. russia continues efforts to block an international tribunal.
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powered by more than 2700 journalists and analysts than 120 countries. more insight into that meeting you just mentioned. it president trump sitting with russia to talk about that and the g-20 summit. book, beyond a new nato. they join us on massachusetts venue in washington, d.c. we're waiting to hear from the secretary of state what was discussed at the meeting. what do you hope that those leaders discuss? expect a lot. i thought president trump would do well if he established a bit of a rapport with president putin but conveyed a firm message that russia's recent behavior, especially in the u.s. elections but also in the middle , causes huge problems and
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if it continues, it will be possible to build an improved relationship. he could convey the tough part 30 quickly but he had to say it. i did not expect a big substantive agenda. that is potentially gravy but it is also potentially dangerous. an can't do that much in hour. >> what was your take away from poland'sh, addressing role in the world and what other countries might do when it comes to economic growth and regulation. how well did he do as we watch angela merkel arriving in hamburg for a concert tonight. >> i thought the speech in poland was reasonably good. there are a lot of people i've
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talked to and read that critiqued it for not having this or that diplomatic nuance. used to a get different kind of politician and a different kind of resident. we can tell him to say the things we think a proper dialogue requires, and he really isn't interested in listening. when he can go convey a message that has some elements of populism and elements of steadiness, i consider it to be fine. not going to give the grades i gave to barack obama or ronald reagan, but for the purposes it could realistically be expected of, it was fine. mavericknessthe you described, how did he want the speech to ring out? does he want to bring other people and other countries on board?
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or did you knowledge that would be a difficult undertaking? >> you're getting into the more detailed questions, which are but they have not held high expectations about them. i don't know that he was resoundingly convincing in his overall themes. he talked about a crisis in the west. if there is a crisis, i'm not sure he's a guide to solve it. that's why i say, applying the othertandards we might to presidents is not realistic here. i did not find the substance of it to be all that cogent. nice things about the country he was visiting, he said some nice things about nato , tough things about russia. and thend the boxes
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added some trump attributes to it which i may or may not have preferred, but that too he is. seen a policy coalescing more than it has been? about a path forward in afghanistan? parts?see the compelling >> i am still thrilled who he chose. , weyone from h.r. mcmaster were very fortunate to get general mcmaster, secretary mattis, secretary tillerson i think is coming into his own. haley, the chairman of the joint chiefs under obama but has been kept on by trump. they were pretty good from the get go, even the first week on the job.
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int has been enough time that president trump himself is trying to internalize some of the messages and make some of the right choices for the options they present him. not going to start declaring exhaling toor deeply because there are huge issues that even if we haven't rocked the boat, we have preserved nato and disrupting major relationships unduly. there is still fundamentally unresolved questions about syriac, the ukraine, north korea. so now it's the phase where the trump administration needs to create new strategies. been of the successes have simply not making big mistakes. come upit is time to
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with strategies that even president obama has struggled with and this is where the team will have to come up to a higher level. news, reports on bloomberg , hacking power plants here. this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. we're getting headlines out of that meeting after president trump and the russian president concluded. convening a press conference of his own, rex tillerson convening his own press conference. saying thatn president trump and president putin talked about the u.s. russia relationship. that overarching meeting just concluded, saying that the talks were very concrete and driven by u.s. and russian interests.
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have more in just a moment on bloomberg television. the russians might be behind cyberattacks and a dozen or more power plants. she joins us on the phone. a brookings institution senior fellow in foreign policy and beyond nato. let me start with you and ask you what we've learned over the last few hours, what the hackers have been able to do. >> we have heard from the department of homeland security and the fbi that they were aware of potential intrusions in the energy sector. learnedmberg news has is that hackers breached a dozen u.s. power plants including a nuclear facility in kansas. officials are warning that
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hackers are trying to disrupt the power supply. they're working to get the hackers off of these networks. >> he wrote that cybersecurity is at the forefront of policy discussion and planning. in many ways, the cyber threat has leveled the playing field. i wonder what you make of this story in particular. it seems like there's a lot of poking around here. what does this say to you about the future of cyber warfare? >> great question. a number of things. infrastructure is crucial because we need a electricity and to make sure nuclear power plants don't go dysfunctional or nonoperational. ever in awere
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conflict overseas, we would need to use the u.s. infrastructure to send forces from their bases, to reinforce those that might be abroad. it's a national security issue in every sense of the word. we have known for a long time these kinds of assets are vulnerable. and there is a very good defense study called cyber deterrence and i would recommend it to anyone. it it is a little scary about the degree of vulnerability in this country. we know russia and china have the capacity to hit these kind of infrastructure systems with quite devastating effects. it is not the worst thing in the littles it teaches us a bit about what we are good at protecting against, where we still need to improve our game. i don't see this as a hugely
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surprising or unsettled phenomenon. we are worried about the vulnerabilities we haven't yet learned about. a couple more headlines. secretary of state rex tillerson jointly u.s. russia reached a cease-fire. it is very quickly. let me ask you about what spin respondent. >> the u.s. is trying to get these hackers off of the networks that the department of energy has said was limited to administrative and business networks. it didn't go to the control system. we have heard from the kremlin that dismissed these reports.
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how russiang into also targeted the power grid in the ukraine the last couple of years. and we have ongoing investigations into russian hacking. the u.s. is looking to see if russia is trying to use more danced tools to try to penetrate this control system. author of the new book "beyond nato." to press conference going on concurrently. sergey lavrov saying that we in new threats. this is bloomberg. ♪
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david: new york city on a friday afternoon. let's start with the headlines
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on bloomberg first word news this afternoon. get caught up. in a near unanimous vote, one hundred 20 countries have approved the first ever treated to ban nuclear weapons. the u.s. instead wants to strengthen the nuclear nonproliferation treaty. prime minister theresa may rejected pleas from her own brexit minister to guarantee the rights of eu citizens. davis minister david warned her about her hard-line approach. was makingin fate negotiations with other governments harder. the authority has approved a $9.7 billion aid payout to greece. meet paymentgreece deadlines due this month. the balance will become available in september. police and protesters continue to clash today.
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two dozen people were injured when they fell off a wall during a protest. 160 police officers have suffered injuries since the protest began yesterday. global news powered by 2700 journalists and analysts. this is bloomberg. david: let's get back to the g-20 summit. it lasted more than two hours. rex tillerson announcing the two nations in jordan have reached an agreement in southwest syria. a lot of headlines crossing. sergey lavrov and rex tillerson are having press conferences. there is disagreement about russia's involvement in the last presidential election. matt miller, greatest big with you. what are we learning as i from ? >> one of mentioned
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the things that we are hearing is that donald trump has accepted russian president vladimir putin's denial of any involvement in the hacking of the 2016 election according to sergey lavrov. they are giving dueling press conferences so we don't know what rex tillerson has to say about that. there is a really dramatic moment that has just taken place. shoulder, a big screen in the media center showing the hamburg philharmonic where all of the g-20 leaders and the sherpas and staff have gathered. the concert was delays -- delayed because of the meeting between president trump and president putin. president trump came in with melania, standing next to
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president macron of france. but there was a standing ovation in the hall. it was a quite poignant and dramatic moment. is filling upho that leadership vacuum here. itself..s. isolates david: tom keene and i were on the radio watching world leaders arrive at the first session a lot of warmth between angela merkel and the first session. there was a lot of interaction and conversation among the world leaders. matt: it seems to be a mutual admiration society.
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no doubt they knew that it would work out the cease-fire. tillerson and laugh rob had been meeting before that. interesting to see how much the two of them seemed determined to build on a friendship or build a friendship in such tumultuous times. david: let me ask you about the communique. how much work did the sherpas you mentioned, the folks on staff, charged with getting policy points through have to do before we get to that communicate tomorrow? i know they've been
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working extremely hard so far. yesterday, i talked to the russian sherpa. she had six staff members and said most of the other sherpas have the same amount and had been meeting nonstop for the past 48 hours and would do so again today. a lot of people in one room trying to hammer out agreements strict leon policy, doing nothing political. cyber security issue, the g-20 released another statement on internet security similar to the one the g7 released. interesting to see russian and u.s. leaders saying they will start a bilateral commission. david: matt miller joining us from the g-20 summit. mbs is up after reporting the company is working on sales,
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semiconductor company. 10% right now. let's get more perspective from general wesley clark, a former supreme allied commander. start with the cease-fire as we have learned about in syria. both saying that they are open to discussing more of these cease-fire zones. how biggest at this this? -- big a step is this? >> who have to see how it impacts the actors on the ground. if it helps detect jordan, that is a very good thing. a cover for other activities that are destabilizing, that is not so good. the devil is in the details and it has to be executed. the president reiterated
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something that he said before, that europe needs to do more. does he have a better grasp on the role of nato in the world now that he's been on the job five or six months? >> there is no way to know what is grasp is on nato. nations are stepping up and trying to increase because they invest in more modern technology to help behind the united states. i don't know whether the europeans are fully reassured yet because the meeting with putin itself contributes to the fear and the anxieties inside eastern europe. they know very well what russia has done.
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and donald trump's passing reference to it yesterday was good. what comes out in press conferences and the actions that follow this will be critical. and vladimir putin will always act on their own interests. in rolling back the european union and westernization and giving russia the control in the border zones to germany. that is their undying and unchanging effort year after year. this is one more approach. perhaps they think they have something more -- someone more open to this. we see him more coalesced europe. in light of the vote in the u.k., germany is carrying a lot of that burden on its shoulders.
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has done aerkel remarkable job holding her leadership position in germany despite the immigration crisis the last couple of years. i think of the election of president macron in france, the end of what appeared to be a surge of populism and nationalism. in eastern europe, it's not so clear. hungry and poland have nationalist regimes. i think the three c's initiative that president trump referenced could be helpful if it pulls together these states and gives them alternative energy supplies and lets them deal more firmly and with more confidence with russia. they still need to be integrated with the states of the western union and we don't want to see the rivalry. we want a strong, safe, and secure europe. we would like russia to be part of that if russia would give up nationalist aspirations and join a larger group.
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david: given your background, what would your message to the president be about that multilateral institution? we're the biggest dog on the block. if nations are taking advantage of us, fine. we can certainly tweak the details and reduce that if it is really the issue. we are the leaders and we are the greatest beneficiaries of multilateralism. we should encourage it and we should lead it. getting out of the transpacific trade agreement was not a mistake -- was a mistake. not participating in the development bank. those are mistakes. the leaders of this.
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we have the most innovative economy and we have tremendous capital resources. then invitingy partners and to help us do that. david: the big item on the agenda last minute is what is going on in north korea. what do you think should happen next? >> there is no military option. there's no way of going back to the status quo. nation -- we may not approve of it but it has been its successful in retaining independence and fighting for its identity for 70 years under the leadership of three generations of one family. they have what they believe is a growing deterrent capability against us.
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that is fine. we have no intention of attacking north korea. but we have to assume rationality on the part of the north korean leader. guy and it maygh be true that he assassinated his brother. in europed a lot during the middle ages where leaders knocked off people that would challenge them. these are attributes of rationality, not irrationality and north korea has to be dealt with as a rational actor on the regional stage. china and russia don't have our interests. if we are relying on them to solve the problem, their solution is that if america leaves, there will not be a problem. that is not the solution we want. let north korea put out some conditions. let's work those things and
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bring some incentives to the chinese or the russians to cooperate with us. but the key is, can we maintain a stable deterrent on the korean peninsula? that is the objective. david: wesley carr, retired general. to sayer acosta had about the jobs report of the best way to create more jobs in the future. this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. it let's check notable movers this afternoon. are starting with the
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tech sector here. analyst comments coming out positive on twitter and paypal. coming out saying that they are making positive product changes in that it is going to ultimately end up in ad revenue growth. paypal saying they likely won't be acquired and they will come in and build their own p payment system. these are the movers i'm looking at. we're talking about the jobs report. i wanted to highlight the staffing companies making moves today. the workers come in and reenter the workforce. those payrolls came in higher than expected. it leaves me to my final chart. your's is record number of people coming into the workforce and getting employment here.
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that is why we are seeing the participation rate ticked up a little bit. something we talking to with the labor secretary. >> let's turn to the labor economy. 222,000 jobs last month. colleague talked. aprilsaw a revision for and may. >> things are in pretty good shape. what is left to be done? we saw a slight uptick in the
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job participation rate, which is good news. we need to get more americans back to work. very important we make it attractive for them to join the labor force, to look for work, and to work. there is still a little bit of slack in the economy. if you look at the number of americans working part-time but would like to work full-time, it is still slightly above the prerecession level and that is important. muchimportant to know how slack we have and we do have slack for further growth. >> we talk about wage pressure. wages are growing 2.5% at the annual rate which is better than the rate of inflation. it's not what most economists would expect. accounts for that in your analysis? >> it is moderate rate -- wage
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growth. fore is slack and room further growth in the economy. notgood news is that we are facing the inflation you would as the economy reaches full employment. make sure weto grow the jobs in the areas that they well and really have an impact on american families. and something we've been reporting this week is the skills gap which i know is something you've been focused on as well. how do you assess that problem in the job market today? >> is one of the largest problems we face. the skills gap is real. as i talk with businesses around the country, they say we want to hire. but the individuals applying don't have and haven't had an
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opportunity to have the skills we are looking for. we need to work with educational institutions. ansident trump signed apprenticeship executive order saying that we need to have more apprenticeships that teach real skills that get people jobs. talking earlier with my bloomberg colleague david westin. senate majority leader mitch mcconnell vowing to have a new health care bill to replace obamacare. the latest, up next. this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. president trump's pick to lead the fbi and republicans fighting
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to save their health care bill. kevin, let's start with the mood in washington. home talking to constituents about health care. what do they face when they get back to washington? >> it was a slow couple of days but we are recharged. to head the fbi. same day, mind you, that federal reserve chairwoman janet yellen will be testifying in the house financial services committee and will head to the upper chamber before the senate banking on thursday. a lot of questions she will be facing about her own future and whether or not she wants to remain as fed chair. serve out the remainder of her term and she wants to do that. of course, there will be a lot of talk about the health care legislation.
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mitch mcconnell saying he will be able to produce some type of health care proposal. senator ted cruz has been working behind the scenes to get some kind of compromise. moderates like senator dean heller and senator susan collins and lisa murkowski of the world, if they will get on board. david: how have the last few days gone? have republicans been able to make the case to constituents back home? >> there it is, 28.2% supporting of the gop health care plan, which is not good at all. . 40% popularity david, this is a question for whether or not moderates are going to be able to rally the speak, for the positive parts of the affordable care act.
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republicans ran on it for eight years that they don't like it. but now they have do up with an alternative. opioid talked about addiction, planned parenthood, and cuts to senior citizens, it is all a very different policy debate and we see republicans heading back home. they have had to face these tough questions and it led virtually every local newspaper this july for recess and now they've got to come up with a plan. telling folks that he's not willing to have in august recess until this gets done. we had fromstion matt miller, the news between president clinton and president trump, raising the issue of election meddling. will put it to what i was just told. it's time for congress to put their money where their mouth is in time for the white house to do the same.
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that is a question for the republican-controlled house of representatives after unanimously passing a bill. for you asod weekend well as. it coming up this afternoon, we talk with adam jonas about the road ahead of for self driving cars. a quick reminder you can catch all our interviews on the bloomberg. charts, ands, functionality right there on the right hand side. ♪
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scarlet: i'm scarlet fu. julia: and i'm julia chatterley. welcome to bloomberg markets. ♪
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scarlet: we are live at bloomberg world headquarters in new york over the next hour. here are the top stories we are covering from around the world and on the bloomberg. in politics, two hours 16 minutes. that is how long the meeting between donald trump and vladimir putin lasted in homburg, germany. it ended with a cease-fire announcement in syria. in economic news, mixed signals from the jobs report, with a gain in payrolls but weaker wage growth. the chairman of ever core isi says the job rate will decline to 3.5% by the end of the year. is bracing for chaos as amtrak begins track work at penn station. the maros


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