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tv   Bloomberg Markets The Trump Economy  Bloomberg  July 10, 2017 1:00pm-2:00pm EDT

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from the fourth of july parade and they face a logjam on tax reform, the budget and infrastructure and they only have three weeks to go before the next recess. doors, donald trump junior secret meeting with the russian lawyer to get damaging information on hillary clinton during the 2016 election. this as president trump's ideas of teaming with russia for cybersecurity gets panned. some are upheld. that is what the new york governor says commuters are facing when the work is underway for repairs on penn station, the busiest train station and the united states of america. what to tell us about the trump administration's infrastructure plans. vonnie: let's get right to politics now. david: joining us with the very latest is bloomberg's chief
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washington correspondent. kevin, let me start with you. they have three whole weeks to get things done and they have to get health care through at least the senate with republicans. what are the chances? kevin: they have three weeks, but time is running out. now posed with the option of rather to not -- whether not to negotiate with heidi heitkamp or muster a deal with alexa ted cruz and mike lee c. some folks on capitol hill are suggesting that the majority leader is not potentially serious with working with democrats. he wants to put pressure on these republicans and say this is it. this is the moment. this is the opportunity in order to get some type of repeal and replacement effort on the affordable care act. either way you start looking at the numbers of $2 million for
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opioid addiction or defunding planned parenthood. look at the 22 million americans according to the nonpartisan congressional argent losedget office that would insurance because of this legislation and any look at the insurance market. not all them are on board with this and this is a very tricky political situation for the majority leader to get this across the finish line. david: it's not clear the republicans want to work with the democrats. the democrats want to work with republicans? chuck schumer has written a letter to mitch mcconnell. what did it say? sahil: first we know that mcconnell does not ideally want to have to work with democrats. he has raised the prospect as a bit of a threat to some of the members who are holdout, saying we have one chance to do this and one chance to keep our promise that we have been pushing for the last seven years so let's get this bill passed so we do not have to work with democrats. having said that, the letter that democrats, including chuck schumer and three members of his leadership team, sent to leader
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mcconnell earlier today essentially said, yes, we will take you up on that. come to the table and we will talk with you about a solution to stabilize the insurance markets. democrats are not going to bite on anything that smacks of a were appeal of the formal care act. -- of a repeal of the afford will car affordable care act. raising premiums and raising deductibles to try to make up costs for having a sicker group of customers. there are several provisions that have either expired, such as the reinsurance provisions, or are subject to legal challenges, such as the cost-sharing subsidies. democrats are like let's fix those. if you do not get this done, we will have to do that. it remains to be seen and it's certainly a possibility. david: kevin said the magic words -- stabilize the insurance markets. it seems like we see new insurance companies dropping out of these exchanges. present trump says it's going to
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follow part, but if it does fall apart, who will be blamed for that? if republicans avoid blame for that responsible become a what is their plan if they cannot get legislation through? suggestingcrats are that the uncertainty surrounding the white house has led to the interns market -- insurance market pulling out of the afford will care act. republicans disagree with that unit. they say the reverse. they say obamacare has forced these companies to withdraw from the exchanges. who gets the blame? that will be up to the voters to decide. polling suggests that this is not as popular as a host of other health care plans that have been put forth in the past decade or two decades. it is even less popular than the plan touted by the clinton administration and even less popular than obamacare when it was first touted because there are aspects of obamacare that remain deeply popular in states like nevada, where senator dean heller is up for reelection.
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why you are seeing these factions within the republican party. it really is magnified right now because of the different competing interests. is differentrtman than the texan ted cruz. david: in fairness to the members, they're not sitting at the beach. they go to their home constituencies and they meet and they have town hall meetings and the here. what are they bringing back about what people out in america, the voters who keep them in office, what they're are thinking about what is going on with health care reform? kevin: it's and i question and republicans do not have an answer. that is why we have these spectacles of republican rank-and-file members asking their own leadership to delay the recess. they came in promising above and beyond. any one of them was a replacement of the affordable care act. how can they go home empty-handed when they control the house, the senate, and the white house, having won the is
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on the promise of replacing the afford will care act and not doing it? is a very difficult proposition no matter how you spin it. i want to go back one minute to something that could and pointed out -- kevin pointed out that is really crucial and hits the nail on the head. this box that mcconnell is instantly because of the fact that if you keep obamacare's pre-existing conditions, you have to keep unpopular provisions to make it work economically. cannotnot have -- you force insurance companies to take sick customers if you do not also require healthy people to come to the system. that is where you get the individual mandate and the medicaid expansion and all these extra subsidies that republicans don't like. you have to balance it out. if you get people on one end, you lose people on the other end. david: finally kevin, president trump tweeted about health care, saying he cannot believe that congress would go into recess again without coming up with a bill. are they going to ask congress to stay in session? kevin: i'm hearing from a source
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close to the majority leader that he is solely prepared to end the august recess should they feel -- delay the august recess should they feel that they have down to the wire votes to get this passed. he will bring it to a vote if you feel she has the votes. the president scratching his head and is dealing with the political reality that legislating is a much more difficult task when campaigning. david: not the first person to discover that. hill so really answer -- kevin cirilli and sahil kapur. taylor riggs is here with the latest. taylor: not a whole lot going on and it felt like a quiet monday in july. the s&p 500 up for its second day in a row. i would point to the nasdaq up over 4/10 of 1%. that tech heavy sector continuing to make small progress, rebounding from the highs it made a month ago.
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i want to look at the s&p 500 tech sector that is making one of the largest gains of the index. and then there's a few individual shares i want to talk about. i will start with nvidia because it's up the most over 3.5% on the deal with toyota. nvidia will play a key role in toyota's push to autonomous driving. some analysts saying that nvidia could get a heap load of cash. i will be watching that stock. some other commodity asset classes that we are looking at his gold. the interesting thing here is that gold spot prices are not doing much, but gold stocks are moving. this is on reports that gold and copper stocks do better in a tightening environment. this is the bank of canada's expected rate increase on wednesday. the sectors actually perform their markets. i will make sure to check back in on this on wednesday to see if that does indeed hold on. rounding out the asset classes, we will look at the 10 year yield. it would be an understatement to
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say that the bond market has had quite a bit of a selloff over the last nine days. the 10 year yield was up about 18 basis points. today taking a little bit of a breather, down about three basis points. i would say a little bit of a sigh of relief, but still nonetheless, the yield still climbing. david: i love it when you talk technical like a heap load of cash. [laughter] coming up, russia continues to consume time and attention in washington on both ends of pennsylvania avenue. we will have the latest on the president sons meeting with the russian lawyer during the campaign. on trump's of working with the russians on cybersecurity and on congress working on tougher sanctions even as the in ministration works on improving russian relations. live from new york and washington, this is bloomberg. ♪
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david: this is "bloomberg markets: the trump economy" i am david westin. timeout to get the bloomberg first word news this afternoon. we turn to mark crumpton. mark: republican senators want to interview donald trump junior ft -- after he admitted he met with the russian lawyer during his father's presence and campaign. the senate intelligence committee should talk with the younger trump as part of the panel's investigation into russia's meddling into the election. tillersonof state rex is a knowledge in severe strains in u.s. and turkey relations following a meeting in a sample -- in istanbul.
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tillerson has admitted that the relationship has been under some stress for some time. >> i hope we are putting it on the mend. hours ofad about six meeting with president erdogan and things are getting better in terms of the tone between us. we'll -- we are beginning to rebuild some of the trust that we lost in one another. mark: washington and ankara must strengthen the relationship going forward. theresa may will call on opposition lawmakers to help steer britain of the european union. in her speech tomorrow, may will re-state her view that it will tackle injustice. reform is needed to make a success of brexit and she will call for cross party cooperation to deliver it. support for japanese prime
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minister shinzo abe has slumped to record lows in three new media polls. public trust in the premier event berated -- evaporated ing a string of scandals and has been called to be replaced. global news 20 for hours a day powered by 2700 journalists and analysts in over the 120 countries. i am mark crumpton. this is wondered. bloomberg. david: president trump may have met with vladimir putin for the first time over the weekend, but donald trump and his son-in-law may have met with russia. joining us now is shannon pettypiece, its increa. it is increasingly complicated. shannon: i think we are getting more and more information hourly and we are only seeing through a tiny hole in to what a bigger picture is here. what we know so far is over the
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weekend, new york times first reported that donald trump junior met with the russian lawyer. initially we were told it was a meeting about an adoption they learn then as more about the meeting on sunday, donald junior came out and said it started as a meeting to collect opposition research on hill are clinton and then they shifted the conversation to this adoption program and this law that blacklists russian violators of human rights. we are also learning more about how this meeting was set up initially.eare it was set up by an opposition research group and now we are finding out that it was set up by publicist on behalf of a .lient it is unclear how we get from the pop singer to the russian
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lawyer, but the interesting connection to this continues throughout the day. david: the last report came in the last hour or so. video made music around the miss universe pageant that had donald trump himself. this is him pointing to the camera and saying, you're fired. shannon: it kind of sounds like maybe the russians were trying to find some connection to this new candidate. had trump locking up the nomination. it through the bulk of the really contentious primaries. the russians are trying to find some connection and to have this connection from the 2015 miss universe pageant that was used to get a meeting with donald junior with this russian
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lawyer that had been a bit -- a big advocate for try to of this american law that blacklists human rights violators from russia. david: it's pretty juicy stuff, but it's hard to figure out which the signal and what is noise. there is work on capitol hill involving sanctions. we have sections against russia tied to the ukraine, but there is a bill that passed the senate. russialy an expert on and this is what he had to say. they are investing into andors that will move away they are most afraid of .anctions they are being raised because of sanctions.
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what is it me to codify them in law and how likely is this to pass congress? it has passed the senate but not the house. shannon: we have gotten conflicting statements on whether they will support this and whether they even discussed sections with russia. tillerson saying they were discussed with putin and trump . i think the white house position is really unclear right now. i guess it's anybody guess really what will happen in the thee come up at the end of day, they will have to make a decision on whether they are going to sign this or not. reason that there is an opposition movement to be sanctions is because the white house is looking for bargaining chips that they can use with russia to get their cooperation on things like north korea or in syria. in order to get the russians to help us in north korea and
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syria, can we offer them other things? that is one thing in ministration has been trying to look at. sanctions, butng sanctions is a bargaining chip that they can put on the table if they had to to really get a deal on something else that they want. david: all this might go away if the ukraine situation went away. we now have rex tillerson embracing it. they have even put a special envoy. how serious is this initiative to try to resolve the conflict in ukraine? shannon: i think that is one of the key dilemmas that the have with russia right now is this conflict in the ukraine that is going to be difficult, especially with pressure from nato members to turn a blind eye to and just move forward with normal relations. i think that is going to be crucial and that is something that will be really hard for prudent and -- putin and russia
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thatve up on or retreat on crimea or further expansionary desires that they do have in that area. david: even as we started this discussion, they are -- you are saying there are developments everyday. and nbc news report just came out while we have been talking saying that the senate intelligence committee is going to begin meeting with trump campaign officials this week in the rush investigation. -- the russian investigation. that is according to nbc news. these are things developing apace. shannon: that was pretty expected. we have been waiting for a timeline. we know susan collins wants to talk to donald junior now, so that's another name to the list. david: that shannon pettypiece joining us. we will hear from a man whose job is infrastructure and he knows how to finance it as well. jim very managed a $17 billion
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fund. that is next and this is bloomberg. ♪
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david: this is "bloomberg markets: the trump economy." i'm david westin. infrastructure -- everyone talks about it, but few people seem to do anything about it. jim berry is the exception. he is the global head of real assets at black rock and manages $17 billion specifically targeting infrastructure investment. earlier today, alix steel and i talked with barry about the giant maintenance project that promises to disrupt hundreds of thousands of commuters lives over the next eight weeks. that is called new york city's penn station. all institutional investors are invested in project like that. is the poster child for the state of american and for structure and you are seeing a patchwork activity this summer to see it safe.
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it has been under investment for decades now. commuters deal with it on a daily basis. challenge to deal with it requires tough political decisions. the cost is typically born in a very diffuse and non-cash way by commuters that allows you long finger decisions. isis only when safety crisis really extreme and there are consumer events that you get clinical action could -- clinical action. it's tough. the challenge with the trump administration is coming forward with a program that will get capital to move in short order. alix: when i talk to guys like yourself, they say i like energy infrastructure in alternative energy. they do not tell me i want to rebuild the tracks at sensation. -- at penn station. jim: they do, but it has to be offered in a way that makes sense. saying put money into penn station does not work in its own right. what the government and agencies like amtrak me to do is
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make it clear project with boundaries to bear with the capital to deliver it in some form of structure like the public private partnership. that is tough. years tothree to five develop any substantial program. the quickest way is to give existing agencies may crash -- new cash. it will give it to bonds and not people like ourselves. the reality is that people in the global investment and for structure world is looking at the united states. it is an energy and power market. that is what we have to substantial invest in this country. the market is open and ready if there is an interest of investment opportunity. david: is that really the difference? there are companies with cash ready to go. it is really, schreck immediately. jim: cash is there, but it's the projects.
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in the energy sector, ud regulated markets and have private sector activity. you have the big players. in a sense, is geared up for the private sector capital. this is not about capital. this is about the projects. david: that was jim barry earlier today on bloomberg. focus onoday, we will the g 20 and what president trump was able to couple of and what he did not during the summit. that's next. this is bloomberg. ♪
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delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. >> this is bloomberg markets, the trump economy. i'm david westin in for david gura today. word newswith first
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this afternoon. mark crumpton. mark: the health care fight will -- lawmakers trickle back to capitol hill this week. mitch mcconnell is still trying to buy enough votes -- votes in the gop caucus to muscle the measure through. several republicans have indicated they opposed the bill. this morning, president trump tweeted", i cannot imagine -- imagine i cannot congress would leave washington without a fully approved health care bill. president obama will make an appearance this week at a democratic fundraiser in washington on thursday. mr. obama has mostly stayed away from politics leaving the white house, working on causes for his foundation and presidential library. less than a month after brexit negotiations, the european union parliament is threatening a veto over the rights of eu citizens in the u.k. three they say the british proposal --
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put say the proposal would some people at second-class status. more and more americans are spending their golden years on the job. older werele 65 or working at least part-time in the second quarter of 2017. the age group's employment population ratio has not been higher in 55 years. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. david? david: thank you, mark. world leaders wrapped up their two-day summit in hamburg over the weekend. everyone walked away saying they got something. here to take us with what .appened is mike mckee joining us from london, alan crawford.
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let's start with you, alan, you are close to where it happened. let's talk about people to begin with. there are reports in the u.s. that angela merkel was a clear winner, the chair of the g-20. she kept it together. is it clear that she comes across enhanced by this experience? >> i would argue she certainly comes out of this looking good. that's important, because of elections in less than three months. she lowered expectations coming into this. she said, we have to be clear where we have our differences and get over them. in the end, certainly she managed to unite all of the 20 around some kind of language on free trade, some commitment to free and fair trade.
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equally, on the issue of climate change, she managed to hold the 19 other countries together in sticking to the paris accord on climate, while acknowledging that the u.s. was not joining. she stood up for her principles and made it clear when there was an issue. so yes, she came out with a success. david: what about donald trump? how did he come out? >> the general reaction is that he didn't come out well, particularly among european and others of the g-20 -- europeans and others at the g-20 summit. there is an idea that the world has to do more for those who are victims of trade, and hasn't in the past. .e can point to that beyond that, his position is isolated from the rest of them. merkel held the rest of the 19 together. david: if donald trump are here,
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he would say he is president of the united states, not the world, and he was elected to fight for certain intervals. and he fought for them. therefore, he delivered to the people who voted for him. is he wrong? >> no, he did what he said he would. the problem, most people would say, the u.s. is not an island. you can't be that in an age waye global trade is the the global economy functions. if you are cutting off the rest of the world, you are not going to be able to take advantage of the opportunities we have. when we go to walmart or amazon, a lot of those products are imports. people who made those products in the united dates are not getting paid, those jobs are not coming back. we lose the ability to raise our standards of living. it is a globalized world and we can't go back. david: let's talk about the chinese president. before this summit, he laid the tracks down for assuming a
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leadership role in the world. histhis g-20 summit enhance ability to take over leadership positions globally? >> i'm am not sure it necessarily enhanced it. he certainly made more noise. as for the u.s., that remains to will beif these words followed by actions. nonetheless, he made a strong statement criticizing what he nations,jor developed for retreating into protectionism and retreating from globalization. there was a meeting of china, russia, india, so 1 -- he said need to, he said they have a bigger leadership role. david: how did the global system
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fare? we have had a number of multilateral global systems in place. the united states has led on that most people feel it has led to a lot of asperity, success around the world. how is that system doing after g-20? >> seem to be doing ok. there is an idea that is a lot of talk and bluster, but he hasn't followed through on things that would hurt the system. we haven't started a trade war, we are not having a currency war . he is at least talking to the chinese. there are a lot of things that are positive, because he hasn't done anything negative. the rest of the world is holding ,tself together at this point in agreement that globalization is still valuable. news, to inject breaking the f-35 jet program costs jumped to $406 billion -- excuse
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billion.5 don't want to leave out $500 million. that's relevant, donald trump targeting this thing as saying it is too expensive. look at that, costs going up. defensehing about contracts, all these things are built into so many states, there is a big political constituency for it. he can rail about it that congress will not kill the program. when he goes to these summits or talks at home, a lot of what he is doing is talking. the followthrough is not there. we haven't seen a lot of negative policies there. they haven't gotten health care through. you have to separate out the rhetoric from the reality when you talk about the u.s. economy and politics. defense, continue on one of the biggest agenda items for donald trump internationally has been defense country visions of nato countries. that was not front and center at the g-20. he's referenced -- he referenced
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section five of the nato treaty. he is making progress in the sense that he has forced the issue to the top of the agenda in europe. at the same time, this governments were already committed to increasing their share of defense. we were talking about the german chancellor -- she has been saying, we will maintain our commitment, but we were always going to do so. , not quite the money pouring in as the u.s. has suggested, but he does have a success in the sense that it is one of the top issues now. david: thank you very much. up, treasury secretary steven mnuchin claims the administration is so on track for tax reform by the end of this year. more details next. as is bloomberg.
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♪ -- this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. i am david westin. lot -- had a headline a about the f-35, lockheed martin, the president said it cost too much money. well, the cost has come back up, 7%, it will cost $406.5 billion. they will order more jets, but they have just reported to congress by the most expensive -- expensive weapons system anywhere in the world has just gone up three let's check in with taylor riggs. the amazonill use
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prime day tomorrow as an excuse to talk about retail for a moment. take a look at amazon here. scherzer climbing up. climbing up. higherless, climbing ahead of the prime day tomorrow. i want to look at aircraft carriers that amazon has said they are going to use. is up here over 2.5%. amazon announced this morning they are going to be using a prime air cargo plane, fueled, ready to go back here in the u.s. for the first time. when there are winners, there are losers. i will focus on best buy today. 6%.s lower today, more than
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on a technical analysis, crossed down below that moving average, moving down towards its 100 day moving average on reports that amazon appears to be developing somewhat quietly, its own version of best buy's geek squad. finally, to bring it all together -- come into my 8544 -- theg #btv team has normalized it back a year. follow me here, it is in the purple. you are looking at internet, retail, and the brick and mortar. this sums it up on why amazon again making game today, david. secretary -- the treasury secretary remains committed to getting tax reform done by the end of this year, but that's hard. i have never heard steve
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mentioned that it's another example of fault -- a false leak being reported. i think it's very clear that we have a proposal that the administration has put out with a rate of 35%, where we reduce and eliminate almost every single deduction. that means people in the high tax states will have no tax reduction, and it will be offset by reduced reductions, that's the current plan. ,avid: that was steven mnuchin but he was not talking about getting it done this year, he was making a different point in the same interview, saying they haven't -- they have a 40% higher tax rate. he did say though that they will get it done this year. joining us now on how realistic .his is is sahil kapur let's talk about tax reform. -- seemschin steams very committed, and gary cohen
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was before him, to getting tax reform done. is this realistic? sahil: it is getting less and less realistic. fact that health care is being pushed into july, when -- it's less likely. the senate health care bill does not have a clear endgame. from everything i can see, republican senators are moving further apart. there are three weeks before an august recess is scheduled. after that, republicans have more deadlines staring them in the face, that are not going to be easy to get done. i think it was always ambitious to get something as far reaching as number hints of tax reform done in 2017, since republicans got986 was the last time it done, it took 2.5 years. they have to get this
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out of the way before they can address tax reform? they think they're going to save money on repealing and replacing obamacare. do they have to deal with health care first? sahil: putting aside substances -- substantive arguments, they have to pass it or dispense with it before they moved to tax reform, procedurally. they are using a reconciliation bill for health care. they can't move to another reconciliation bill for texas until they dispense for this -- of this one. the short answer is yes. they are working with leadership in the house and senate side to come up with a package on tax reform. is that what you're reporting suggests that it will be easier -- that it will be easier to get thi? david: yes, that's why you have paul ryan, and the tax writing and mitchf the house,
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mcconnell and the tax writing chairman of the senate, meeting on a regular basis. my reporting indicates that along. noty far they're looking at whether the tax rates they want should be offset fully, and how it should be offset. that's the toughest thing to do because it involves raising taxes on a group of people, that's always painful. alld: as if this weren't enough, besides health care and tax reform, you have a budget passedthey need a budget if they are going to deal with reconciliation. this reconciliation was from last year. they also have a debt ceiling to deal with by september or so. what is the order of these things? sahil: it depends. the budget resolution will set the standard for what republicans hope to take in in
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terms of tax revenues and what the hope to spend. next year republicans in the house are bogged down between divisions of the conservative flank, who wants to come more from mandatory spending -- and moderates who do not want to cut that's part of the budget. that's just one thing -- probably a budget resolution will come first if they get their way. they can put it off because it is nonbinding, they can fund the government without it with short-term resolutions. the debt is something else. the united states will default, which would probably cause a global economic catastrophe, according to economist. by mid-october, the congressional budget office, congress will have to do that. that's not flexible. david: thank you very much. chairman'sext, fed -- fed chairman janet yellen's
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testimony on capitol hill. is it a job interview? live from new york, this is bloomberg. ♪
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david: this is bloomberg markets, the trump economy. i am david westin. janet yellen's testimony on capitol hill is wednesday and thursday. for what to expect, let's bring .n matt osler -- matt base we should talk about the fact that her term is up next year. what would investors look at in this testimony? ,> i think the number one thing everyone is keyed into how the fed is looking at inflation. we have at a string of week
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inflation data read we are at a point where we should expect inflation to pick up based on the fact that unemployment continues to grind lower. how are they looking at this? are they changing their views on inflation? what is that mean for interest rates? at this point, you could say that given the strength in the labor market, the outlook for growth, inflation is the last thing from preventing them from raising interest rates faster. david: you say it's a relationship between employment and and elation -- inflation? we have seen wage pressure. is there any indication in the fed that they are questioning that relationship? >> i think so, at the corners of the federal market committee. forward thinking people, like charlie evans, have started to talk more about the amazon effect, globalization. rob kaplan, some others as well.
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tend to have this , do weation gestating need to consider other ways to look at the world to forecast inflation? that's a fascinating conversation. david: are there other candidates for a different model , instead of the old way -- this explains the amazon effect, what lization has done -- >> that's an insular profession. the fed is at the center of it. they want to stick with old that's what they say they have been working with this whole time. there is an element of, this is the best model we have at the moment. it may not be perfect, but it's all we can go on. david: the balance sheet is another topic. they have now indicated they are
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looking at how they will unwind slowly. there are some on capitol hill who think they should have done it in the first place, and they certainly should come down as fast as they can. will there be pressure on janet yellen to bring the balance sheet down faster than what she has indicated? >> it's interesting, like you said, there has been so much pressure. janet yellen is finally coming and giving them exactly what they wanted, which is, we are going to get this process started. the thing that surprised a lot of people at the fed over the last several months, as they have been talking about this there hasn't been much of a rise in interest rates or market turmoil as a result. a lot are sitting here and looking at this and saying, maybe we shouldn't be so worried about this causing extra we can go, maybe ahead and start this sooner rather than later. david: it is interesting that at a time when a lot of people
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would like more rules-oriented monetary policy, it is not clear, given the amazon effect, what's the rules would be. >> great point. a lot of the people who will come into the fed because of trump picks -- we do not know the next fed chair -- but many who might be coming on next year are very rules-based economists. they like this approach, they defend this approach. there was legislation previously trying to bind the fed to a rule. with these new people coming in, we could get fed reform from within, maybe that preempts the need for legislation on that. david: in the room, will there be the question of who the next fed chair will be, or will that be avoided by congress? >> that's a good question. i do not know if congress has much insight to bring to bear. janet yellen certainly won't on't want to talk about
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it. david: think you very much. janet yellen will deliver her report to congress us week, the house on wednesday, -- this week , the house on wednesday, the senate on thursday. will had to pen a station for a one-on-one fourth .he amtrak ceo that does it now for bloomberg markets, the trump economy. as we leave, you can catch all of our interviews on the bloomberg with the function tv . you can also find breaking news and related functionality. this is bloomberg. ♪
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scarlet: it's 2:00 p.m. in new york, 7:00 p.m. in london. julia: welcome to bloomberg markets.
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we are live in new york over the next hour. here are the top stories we are covering. capitol hill -- lawmakers and -- do not have a consensus on health care, which has led to a delay in tax reform. donald trump's ties to russia -- donald trump junior conference he met with a russian lawyer who could provide essentially damaging information on hillary clinton during the presidential campaign. in markets, investors looking to the start of the second quarter of earnings. jpmorgan, citigroup, wells fargo will set the stage with their results on friday. u.s. markets close in two hours. let's check stocks.

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