tv Bloomberg Markets The Trump Economy Bloomberg July 25, 2017 1:00pm-2:00pm EDT
continues in the u.s. senate to repeal or repeal and replace? senators are considering that question at a procedural vote set to take place this afternoon. strengthening sanctions against several countries including russia, a bipartisan bill would prevent the president from unilaterally removing sanctions. updates from our colleagues and analysis from eric cantor, the former senate majority leader. my guest for the next half hour. ♪ david: president trump put it in a tweet "a very interesting today for health care." at two: 15 meeting and with spell lawmakers to hold procedural vote on health care that will pave the way for dramatic the way dutch debate. here with us -- dramatic debate.
-- here with us is kevin cirilli. what are they discussing and what is planned? kevin: health care, all about health care. they have enough a republican support to move forward to advance on a motion to proceed. what exactly they are proceeding to remains unknown whether a full repeal of obamacare or a repeal and replace of obamacare is really unknown at this point. that has divided some republicans and somebody like senator susan collins is holding out support. , johncally speaking mccain recently diagnosed with brain cancer several days ago announcing the diagnosis flying from and was -- arizona to the capital to cast that and we will hear directly from him at a press conference following the vote. earlier today, president trump
using his twitter account and the majority leader urging support for them to moving forward. detaildo we expect more on the legislation itself? collinsioned susan wanted to know what the majority leader would like voted upon? is it going to be outlining what it will look like? kevin: somewhat. i spoke with one republican senator who said essentially they should all know what is going to be debated but that is where it is interesting. somebody like senator rand paul who tweeted he has been given talks from the white house it will be a full repeal. he might get a different interpretation than a more moderate lawmakers. even tonight, this afternoon, should they move forward when the president speaks in youngstown, ohio and he will try to declare political victory. it is certainly premature to say
it is anything but over. david: there is a rally and a press conference with the president of lebanon and we will have that. the boy scout jamboree, would you expect he will say this afternoon? anything different? kevin: that boy scout jamboree was quite political catching some of us off guard. when he speaks later, the president will clearly, should he take reporters' questions, will face questions and the attorneyattle with general jeff sessions and whether he wants to fire his attorney general. if you looked at his twitter conference,press sarah huckabee sanders and anthony scaramucci putting distance between president trump and jeff sessions. david: that was chief political correspondent kevin cirilli. joining us now is former house majority leader eric cantor, now
vice-chairman and he joins me. the way in which the white house is approaching this vote and you see the president stressant a seven-year legacy and promises made time after time after time and he is flexing a little bit of muscle trying to get republicans to vote for the procedural vote. what do you make of his engagement? you haveor: anytime the government in washington, there is a way to get things done and we saw that with the passage of obamacare and dodd-frank that now republicans are pushing back against and trying to repeal and replace. i think appropriate, it is game day today. time for the talked to stop and the action to begin. and it is all very uncertain the instant that you have to members of the house or senate go to the floor to begin to consider that vote, it is a
really critical time and something unknown and i think has verydent it unconventional way is trying to lean in and try to convince a those who seem to be still undecided. david: i think there will be americans asking, what the heck is going on? you have senators voting on the procedural hurdle to get over. how rare is that and how do you make of -- and what to do you make of it? eric cantor: it was made early on that the democrats made signals as they would not participate and the decision was made by mitch mcconnell that it said we will have to dual with republican votes alone. this procedural vote which assess him ok, we are ready to proceed and there is a 51 vote threshold to do that. the majority leader determines, usually, through a process in that body how the debate will proceed and i am sure in due time we will tell which
amendments are up first and as we know, rand paul than others who want to see a total repeal first may very well get their wish. david: you have been following i wonder if looking at all of this unfold, you are satisfied the health-care system would be better if this please of legislation would get through both houses? eric cantor: throughout my time when i served in congress and leadership, certainly, was that obama care bill was passed, we were just focused on doing all we can weather it was to defund it, stop it or repeal it. for all that time, president obama was in office so we were trying to build the case no work full well obama would not repeal the health care law with his name on it, so to speak. no question, the country would be better without the health care mandate, high taxes that came with obamacare and frankly, the high premiums.
there's a lot of room for improvement and that's what the -- republican deliberations are about. david: does the deliberation make any sense? do you think there needs to be as much of urgency as we are seeing? eric cantor: one of the things that has always united republican party is to make sure we lower the tax burden and allow the american people to keep more of what they earn. lot of note is a only in the equities market that we see it at this country and around the world and members of congress to see through on that promise and a limited amount of time where you will have to get things done, obviously midterm elections are not that far away. agendatime you get the where rick, you are into election-year and primary season so you want to -- spike time you rick, you arehere into election-year and primary
season so you -- by the time you get to january, you are into election-year and primary season so you want to get these things done. gains andbetween losses and a lot of the focus is on earnings. make doubles and caterpillar helping -- mcdonald's and caterpillar helping dow. hospitals have tended to be the erable, however, more vulnerable to earnings from hca, that company with a earnings that missed estimates and cut its forecast for the full year. analysts say there is concern about patient volume and commentary around a relatively small increase in er visits. the hospitals are at risk because if there's a cut of result to health-care legislation to medicaid funding,
the hospitals could be vulnerable. community health care is taking a bigger hit. we are also watching a big move in commodities, copper futures are up trading data to your high. crude oil is pushing higher by 3%. there is still the movement following saudi arabia decision to cut exports and perhaps in anticipation of the weekly u.s. inventory status. exxon mobil is moving higher. copper and gold moving higher following its own earnings report and a call from jeffries that called the irving -- earnings relatively weak as head of the outlook for the breast of the year is stronger and optimism around china demand for copper -- rest of the year is stronger and optimism around china's demand for copper. metals have been pretty
consistently strong this year and we have industrial metal in yellow and precious metals in a purple. energy have to bend the weak link in it is white and haven't been a bouncing off the lows -- have been bouncing off the lows. ag's in aqua. down movement recently. metals is where we have seen strength. breaking news. anthony scaramucci and worded that michael short of the press aide resigned. it seems that anthony was look for people who were leaking. debateup, the on going of health care. former congressman eric cantor on what this says about lative agendalegis
david: this is "bloomberg markets: the trump economy" and i'm david gura. with first word news. mark: the new communications director said president trump is like -- is looking to likely fire attorney general jeff sessions, anthony scaramucci said that the president is obviously unhappy. the president went after sessions on twitter for a second day in a row calling him "weak."
the president's son-in-law is back on capitol hill for more closed-door questioning about russia. jared kushner is being interviewed by the house intelligence committee after talking to senate intelligence investors yesterday he said he did not collude with russia or know of anyone in the campaign will did. in poland,the fight over who controls the nation's court is not over yet for he is a valid to redouble efforts to overhaul the judiciary after the presidency total loss that would of given the ruling party more power. it led to a today's a protests. apropos alliance boycotting qatar said efforts by the gulf nation to counterterrorism are not enough to end the boycott. they said to the boycott the stands until is demands are met in full. qatar said it's open to dialogue as long as its sovereignty is
respected. 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: six months after they took over the white house and both houses of congress, republicans have talked about health care. eric cantor, the vice-chairman of moelis and former house majority leader is with me. let me ask you about communications. , howrco was mentioning much are we in seeing dysfunction in washington due to a communications breakdown between the white house and congress and the american public? : the american people elected donald trump because of they wanted to sit outsider come in and shake it up and that he has done. the american people are hearing the donald trump directly, he is
the first social media president in a real way because he is taking to social media to get his message out. and athere for 14 years leadership for six years and i know how the press looks at issues is not necessarily reflective of that which all americans a look at issues. often, it is a new era communications and all of that is sort of increasing the volume and the velocity of information every day with the news coming out. david: a person is asking about reconciliation. with health care and for tax reform as well. help us understand the degree to which it is wise to use of that when you are house leadership. eric cantor: it is a senate issue and not house. in the house, your majority gives you close to absolute power in determining the rules and the liberation of agenda.
in the senate, as there are been rules in place for probably over 100 years which allows for a filibuster which means you have to get 60 votes to proceed to most items. there are items that are expected from the general rule and they are entitlement spending, revenues or taxes and that is debt. the three things can be subject to reconciliation without getting too granular and the reason it is called reconciliation is before you set up the process, you have to pass the budget. the budget has instructions for committees on either side of the andtal to write of the bill that legislation has to reconcile with instructions which is the root of the word. again, the net effect is to reduce the vote threshold from 62 51 -- 60 to 51. notcrats signaled they were
going to become operating essence there are only 52 republicans, there was no choice. that is why you hear the president speaking off of obstruction by the democrats because they counted themselves out. mitch mcconnell said we are going to get it done and the only way is to do it with republican votes only. watch this unfold, have you come to the conclusion it was not the wisest course of action to start with health care? there were prospects with tax reform and infrastructure. and we are looking at the president's first year tenure, how pessimistic we are not going to see anything before january 1? i am optimistic. i do not think there are 51 votes for failure. the question is how that success is defined? arepolitical implications pretty severe if the party cannot deliver on seven years,
eight years where the promise is to repeal and replace obamacare. and for decades now, the party has been rooted in this sense of limited government, returning back to the hard-working taxpayers more of what they earn. if republican elected officials cannot go back to their timeituents come election in 2018, i think the consequences are very difficult. ,et's say that in the economy we have been sort of lackluster for now a decade or more with less than 2% growth. goodworld war up until the 2000, we were used to 3.1% growth. that is a significant, significant amount of growth we are missing. the only way to get to that is through tax reform. not a just tax cuts but has reform. onucing the marginal rates individuals and corporations is central.
but we have to worry about the position of multinationals and how they are competitive in terms of market and all of that needs to be done. i think we will see not only markets take off budget economy continue to take off. david: says former congressman eric cantor staying with us. the future of the republican party. this is bloomberg. ♪
david: this is "bloomberg markets: the trump economy." i am david gura. jared kushner was on capitol hill and you spoke to members of the house intelligence. more of a 30,000 foot view of washington politics. the future of both parties. democrats unveiled what they called a better deal. eric cantor is now vice-chairman of moelis it is with me and
craig gordon who joins me. craig, let me start with you. there was a moment in a small town outside of washington, d.c., republicans length out what they plan to do. are we seeing a clear path forward for both parties? think the democrats are still trying to figure how to trumpder from president even though he as a 30% approval rating. maybe not the hard court trump folder but at other that is open to both parties argument. -- maybe not the hard core troppo voter -- maybe not the hard-core trump voter. but i don't think they are credible yet. havenk leaders, would you chuck schumer from new york and nancy pelosi who has been there a long time, i am not sure those are the messengers carrying an
effective message. let me ask cantor, you. you have the freedom caucus and these other splinter groups, it's possible to unite them where there will be a solid republican platform? eric cantor: one of the things that is always united republicans is given back people there hard earned money and that why tax reform is so central to success in economic growth of the country. that is something else galvanizes and unites republicans and that is being, again, what the left is for and not just in as the pelosi and chuck schumer, bernie sanders, elizabeth warman and at that end of their parties that is driving the passion and intensity. i agree that democrats have not been able to get any traction in terms of appealing to the middle class. i think that our is and what
unites republicans is to see some of the policy proposals that come out are so influenced by the far left bernie sanders and elizabeth warren and i do not see any way that middle go and are going to ever grab a hold and get behind that agenda. i think there is a great potential for problems to make inroads and they have to get something done. >> if i were you, i would be playing defense. 1/3 of the senate coming up in 2018 and now you are house majority leader and donald donald trump says, what do you need me to do? the 20, 30, 40d seats that will determine control of the house, do you want trump or to stay away? to have ar: important white house pushing harder in the same direction to get these legislative and policy matters over. really important.
i remember during the big stuff under bush and had a medicare part two prescription drugs and central american free trade agreement and bush tax cuts, everybody in the same direction and really important. david: great to talk to both of you. 23. cantor and craig gordon a bit afternoon as we have the cement reconvening at 2:15 and we expect comments from mitch mcconnell and john mccain who is returning to washington ahead of the procedural vote we expect to take place later this afternoon. coverage of that today. this is bloomberg. ♪
on whether to begin debate on legislation to repeal obamacare this afternoon. mitch mcconnell says lawmakers will cast a very important vote today. >> if other senators agree and run me in voting yes on the motion to proceed, we can move one step closer to sending legislation to the president for his signature. i hope everyone will seize the moment. i certainly will. mark: leader mcconnell says he agrees with president trump that voting against starting debate would be saying that obamacare is fine. the president's new communications chief is warning the white house press office he will fire everybody there is necessary to stop leaks. there are leaguers in the communications department and he has the authority from the president to stop them. wilbur ross says it didn't take long for him to support donald trump for president.
he spoke today at the economic club of washington. >> i thought he had a good sense , i thought the harder part might be to get the nomination because there were so many candidates in the primary, but it soon became clear that he was the only one of them that really understood what was going on in middle-class working america. mark: secretary ross also says that nafta is obsolete. he says at the minimum commit nafta needs to be updated. research on 202 former football players found evidence of brain disease in nearly all of them. published in the journal of the american medical association is the largest update on cte, a brain disease linked to repeated head blows. the findings don't confirm that the condition is common in all
the ballplayers. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm a mark crumpton. this is bloomberg. focused on the u.s. senate this afternoon -- the house of representatives is set to vote today on temper sanctions against russia, limiting the ability of president trump to lift sanctions unilaterally. joining us for the latest from capitol hill is sahil kapur. how did this bill come about? just focusingfrom on russia to include these other countries as well? sahil: initially, the bill was about russia sanctions and iran sanctions. it ran into a bunch of unexpected hurdles. sail throughed to
both the house and the senate, but it ran into an obstacle, a procedural one in the house called the blue slip issue. the house republican leaders said it doesn't comply with the constitution. over time, it expanded to --ctions around north korea i spoke with bob corker moments ago. he says that was not quite agreed to in the senate. he sounded a note of skepticism about that, saying it won't pass the senate as a result. the senate is more likely than not to take it up. there was initially some protest from the white house about having its own hands tied in pursuit of relations with moscow about being able to unilaterally lift sanctions against russia. on this day on which we
are looking to see how closely the white house and senate republicans are measuring up here on the issue of health care, what does this say about that relationship more generally? sahil: i don't think one is quite related to the other. that is aons issue, two-pronged thing. lawmakers overwhelmingly approved sanctions on these three countries. is this cloud involving russia -- this is their time to make their position known. health care is an entirely separate issue. this is about a seven-year campaign promise they made. i spoke to more than half a dozen republican senators in the last hour. none of them know what exactly
will be voted on in terms of health care. the vote is expected in the next hour or two this is a remarkable thing. mitch mcconnell is playing his cards closely to the besvest. david: we will get more insight from ambassador thomas pickering . me start with a broad question about the efficacy of sanctions. when you look at the sanctions that have been imposed in recent years on russia, have been made a difference? pickering: sanctions have been useful in iran and south africa. they needed to be accompanied with a diplomatic strategy that is designed to exploit the sanctions to get somewhere. that is often hard. the congress it seems to believe
if they do sanctions, the answer will drop from the heavens like ripe fruit into the lap of whoever is running the political show. these sanctions have the traditional problems. one of the problems, the president needs to have some bugs ability to operate the diplomatic answer he wants to achieve with the sanctions -- needs to have some flexibility to operate. the other issue is an important , one we found during the cold war. the u.s. and the soviet union had the nuclear power to destroy each other in most of the world. not talking to them and not working with them, however odious the u.s. public and congress may consider them and they certainly do now, the ,dious potion is pretty high the fact that we don't have the kind of contacts that are
necessary to use and exploit the sanctions and the other pressures we are putting on the russians is a serious mistake. you need to give something to get something. or, you need to use pressure to secure some kind of return after which you use that to build some improvement or at least some stability. it's important to look at this strategically as well as in the practical phase of the moment. david: i wonder if you are beginning to see strategy come into focus here. do you think the state department has settled upon a strategy when it comes to russia in particular? amb. pickering: not yet. is characterized by the vast difference between the president and his relationship with president clinton on the one hand -- president putin on the one hand and this antagonism toward russia that is felt in
the public in the congress partly as a result of crimea and ukraine, partly as a result of russian policy, but russians also unfortunately share some of that same feeling as a result of policy mistakes they consider the u.s. is responsible for my canceling the abm treaty with the expansion of nato -- we know a lot about the long history. if the history continues to guide our work, we will look at further escalation in tit-for-tat between the two sides. that gets us nowhere except closer to conflict. no one wants a conflict. they ought to begin to think strategically about how to avoid that and that is to empower diplomacy and diplomacy has to begin to attack the ukrainian question, but other issues out there between u.s. and russia. david: i thought of you a few
weeks back when i read about the program -- rex tillerson decided to put on hold part of the program. he has not filled a bunch of positions. he has tried to scale back some things. i wonder what your messages to young people in the program that has your name on it. amb. pickering: i will tell young people what i had the privilege of telling this year's class of pickering fellows. we need young people. we need diversity that is emblematic of the program. we need to thoughtful people to come in. we need them to stay the course. the country no more than now needs people who have deep expertise and wise counsel to provide and people coming in as a result of the political
process often do know well what the president wants. if the president is seemingly immune to the issues of background expertise, knowledge, experience and what i would call the process of deep thought were where these processes used, he needs people that will now be developed and are going to serve not just tomorrow, but the next 20 or 30 years as the people who can keep us on track and on course. they bring good lessons. the other good thing is, the political people are free to choose. they should know when they choose otherwise what the expected consequences are. in foreignexpertise service, people with deep experience are so important.
theirlitary used to elect officers and they stopped that at the time of the spanish-american war. surgery alsobrain has been the first kind of profession that was fully professionalized. i hope it was. diplomacy like brain surgery in many ways needs a full dose of highly professional people to help those elected representatives understand the consequences of what they are doing and indeed the knowledge and the expertise to guide them along. david: thank you very much. ambassador thomas pickering. coming up with u.k.'s international trajectory in washington for talks on a potential trade guild with the u.s. post-brexit -- international trade secretary in washington for talks on a potential trade deal with the u.s. post-brexit. ♪
david: this is "bloomberg markets: the trump economy." a big week for earnings, especially when it comes to tech. julie: we've been seeing the s&p 500 and the dow rise today. the nasdaq has been flirting with unchanged. looking at the nasdaq 100 in particular, which going into today was on a 12 session winning streak. his longest going back to 2013. some of those days were very small gains, but gains nonetheless. today, we could see a small loss. if you look at the push and pull in the nasdaq 100 that could determine whether it will go up or down, earnings certainly have a lot to do with it and also that is a big part of the reason we are seeing declines. shares down 3%, earnings overall
beat estimates but traffic acquisition costs and up to 22% of sales. down facebooking as well. and microsoft are contributing the most to any gains. apple in particular benefiting from a call out from bernstein who raised the price target to $170 per share. even if the earnings disappoint, that would be an opportunity to buy on weakness because he is still positive for the outlook of the next iteration of the iphone. another big decline we are watching today, the worst percentage mover in the s&p 500 and the nasdaq 100 is seagate measures down 16% -- the shares down 16%. analysts looking for $.98 a share.
it is seeing a sea change in its --iness, slowing down for demand for computer hard drives. volatility,atching which is very, very low as measured by the vix. less so if you're looking at volatility in tech stocks. the implied volatility had a --ge to relative volatility it has come back down a little bit, but still at an elevated level here. it is all relative. looking to close at a record low again today. david: thank you very much. let's turn to trade, the focus t at ther ross' commen economic club of washington this afternoon. liam fox also talking trade in the nation's capital. he is there for two days of
talks on a potential bilateral trade go with the u.s. after brexit. michael mckee is an washington, d.c. what didn't we hear from the secretary of commerce today? mike: we were expecting perhaps news from the secretary, but oddly for someone representing the trump administration in a trade matter, he spoke softly ended in seemed to carry a stick at all. he talked about china and how it's responsible for the overcapacity and steel -- he talked about south korea and its trade surplus with the united states. canada and how the canadians have problems with milk and lumbar, but didn't suggest how they would deal with them with the upcoming nafta negotiations. he noted that at this point, we have an election in the u.s.
next year and a mexican election next year and parliamentary elections in canada next year and fast-track authority expires next year. the timing had better be quick. >> it's probably a big mistake to set a particular date. the political calendars both here and there suggest it should get done pretty quickly. mike: they would like to get something done by the end of the year. the original nafta negotiations took more than 2.5 years building on existing treaties. it may be difficult to get that done. to your deadlines, that's what u.k. faces in terms of brexit. it will be out by 2019. that would mean tariffs go up and a lot of economic problems for the united kingdom unless you can negotiate trade treaties. the trade minister was in the united states best when they are
ready, they can get started. cannot negotiate the treaty while we are in the european union because it is in our interest that we look at the sectors we want to talk about and look at where gains can be made and what we can do in the economy at the financial centers and we will do all the groundwork on the due diligence aside so we have a head start on the negotiated agreements. signed a trades agreement with the eu that took seven years to negotiate. he hopes to be able to do a u.s. and eu trade agreement at the same time but that you would take precedence. they are 50% of the united kingdom's trade. let me ask you what the potential stumbling blocks would ag issues will be
important when these two sites begin talking formally mike: chicken is part of the agriculture discussion. agriculture is always difficult. the british have higher standards for much of their food than the united states does. they don't want genetically modified organisms. they don't want hormone fed beef and they don't seem to want the chicken -- it raises the question of whether you lower your standards in any areas. that would apply to financial services. a lot of them talk about it. it won't be as easy as the president's tweet today. david: michael mckee joining me from washington, d.c. later today, president donald trump will meet with the prime minister of lebanon to hold a joint news conference. we expect the president will answer questions about health
david: this is "bloomberg markets: the trump economy." it is a crucial day for health care on capitol hill. the procedural vote will take place later this afternoon. joining us with more is kevin cirilli. to flag something from an ohio news figure senator portman expected to vote to proceed the .ealth care debate c senator mccain is back in washington. watching for over these next couple of hours as we head to the procedural vote? kevin: i texted several sources within the last couple of now, the- right
working assumption for republicans as they do have enough votes on that motion to proceed. vice president mike pence has also arrived here on capitol hill. he will be presiding over the boat and casey is needed to cast the tie-breaking vote -- over the vote in case he is needed to cast the tie-breaking vote. the question now becomes, what exactly are they voting to proceed on? democrats already pouncing on republicans saying all this is negotiated and brokered within sigrid. that's within secret. now, the divisions within the republican party are going to be having a seat at this table. david: you've got the vice president headed to capitol hill , delivering a message to members of congress. now, you have the president
shifting his focus -- clearly addressing the american people. tonight, he travels to ohio. we will be traveling to the great state of ohio tonight. is he no longer addressing the congress directly? kevin: corrected the sources i've talked with in washington say that is how they feel the president is best utilized in a situation like this. -- pressure on republicans in the house of representatives today, there will be a vote on north korea and russia sanctions . gave athe president speech last night at the jamboree in west virginia -- what is the fallout from that on capitol hill today? kevin: it's just been one of
those -- people are scratching their heads thinking this is a nonpolitical event its boy scouts. it definitely drove headlines. know your audience. that is the feel here around washington. david: kevin cirilli joining us from capitol hill. as we await the procedural vote this afternoon -- the senate expected to reconvene at 2:15 wall street time. president donald trump scheduled to meet with the prime minister of lebanon at 3:00 p.m. wall street time. this is bloomberg. ♪
scarlet: we are live from bloomberg world headquarters in new york over the next hour. -- then with politics stakes are high for senators on capitol hill today. a crucial procedural vote on a health care bill is scheduled to take place this hour. we will bring you the latest. attorney general jeff sessions' future in the trump administration could be in doubts. president trump lashing out at sessions on twitter. a tale of two restaurant chains -- lachman pinning his open on chipotle earnings. mcdonald's making headway on its turnaround plans. -- bill ackman pinning his hopes on chipotle earnings. julie: