tv Bloomberg Markets Americas Bloomberg October 3, 2018 1:30pm-2:01pm EDT
authority from the white house to do so, sources tell bloomberg the white house has indicated to the fbi that last week's senate judiciary committee testimony from kavanaugh and ford, when she accused that he attempted to rape her, as insufficient and the fbi declined to comment. kellyanne conway defended president -- president trump after he mocks dr. ford in a rally at mississippi. herpresident mimicked responses at the hearing, conway said the president was pointing out factual inconsistencies. senators including kirsten gillibrand called the president's actions disgraceful. >> has no empathy for survivors of sexual survivors, it's just -- of sexual assault. it was just another way for the president to devalue women. calledlisa murkowski president trump's remarks
totally inappropriate and unacceptable. the pentagon said the suspicious substance found in envelopes yesterday contained castor seed, the substance from which the poison ricin is derived but not ricin itself. envelopes were isolated at a screening facility and sent to the fbi. addressed to jim maddox, the other to the chief of the u.s. navy. no one was injured. nato defense ministers are in brussels for a two day meeting, focusing on strengthening the alliance and fairer burden sharing among members. the associated press has quoted an official as saying is asked the west will move its warfare abilities to counter russia's aggressive use of cyberattacks in europe and around the world. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists in more than 120 countries.
i am mark crumpton, this is bloomberg. >> live from bloomberg world headquarters, i'm shery ahn. i'm amanda lang. welcome to bloomberg markets. we are joined today. >> and hear the stories we are watching around the world, kushner, mexico, and moments of drama. how the new nafta deal went down. crisis 10 credit years later, we hear from sally fisher in this half hour. big banks areage, cracking down on current traders for offenses as minor as swearing on the phone. let's get you started with a quick check of the major
averages. we are seeing u.s. stocks now rising to record highs, we had some positive data on private payroll and american services industries showing the strength of the u.s. economy. the dow gaining for the fifth consecutive session and the s&p 500 is being led higher by financials. yields are rising, the 10 year yield at the highest level since 2014. and the two-year rising to precrisis levels. some of that economic data is helping the u.s. dollar, that's taking some of the wind out of the sails of the canadian dollar. onto theill holding gains that the canadian dollar has had since the nafta deal was announced. however we are now turning our attention to how competitive our country is. we heard from canada's financial
minister talking about the economic outlook. >> i've been talking to canadian businesses and canadians about how we can ensure investments continue. i has certainly heard that some of the decisions the u.s. took in terms of tax changes are influencing investment decisions. we are taking those considerations into account as we craft a fall economic statement. meanwhile, president trump called the new trilateral trade deal, promises kept. others are calling it more drama after heated negotiations over the border. josh is with us from ottawa. we get the sense that there were many twists and turns and the prime minister said as much. how easy was it for you to get inside and tell a story of everything that happened over this long period? >> i think people are anxious to things that constructive
did come together in the shadow of what seemed like disastrous relations. remember last week president trump gave u.n. speeches worry when after justice -- justin trudeau. babyg he didn't -- thing of avoiding each other. -- it was a day after that saying that they avoided each other, and it was the day after that things picked up. it really came together very quickly over the course of the deal thato come to a we saw announced late on sunday night, just before the deadline. but we are not out of the woods yet. shery: and these negotiations went on for 13 mons, there were a few turning points along the way. -- months, there were a few turning points, one of those was auto talks. >> the biggest turning point was not in the last week, it was six months ago when the u.s. dropped a demand to have nafta cards
meeting 50% u.s. -- nafta cars need 50% u.s. content. that was a nonstarter. when they dropped back we had a path to a deal, and another was when justin trudeau drew a line in the sand. canadians got traction in the room for the first time, which helped the americans realize these were live or die issues. the chief negotiators did not negotiate in public, there was a lot of rhetoric from president trump, a lot of it angry and negative. did that influence the room or was it treated as a separate issue? >> sources said there were does contracts, one was political and technical, when one jammed up the other took over. president trump was not in the room but jared kushner was. forhe was credited smoothing things out when things
got tense. i noticed that trudeau had a press conference on monday and they went out of their way to but barelyise, mentioned donald trump. amanda: josh, thank you. workersill american reap the benefit of the new deal? mondaynt trump speech on addressed unions, take a listen. leadershipugh their always goes democrat, a couples that i don't know how i can do it again. many of them, the leaders were bad democrats, and would tell me will get most of the votes from union workers. and we got most of the votes from workers period. amanda: for more, let's talk to celeste drake. course, a fl cio is america's
io is america's largest trade group. why are you not yet endorsing the trilateral agreement? support the bilateral agreement, we said there are pieces of it that are on the right track that make progress on issues that are important to workers, including labor rights, ending protection , and gettingmexico at slashing special privileges for foreign investors. but we said there was more to come, including canada being in, and figuring out what the enforcement mechanisms will be. we continue to say good progress, but we are not there yet. shery: president trump coming back saying he liked what he saw when you ask a got the u.s. mexico agreement. a got the u.s.
mexico agreement. we had him on the show and he was pretty positive about it. are you is positive about this trilateral deal as you are about the bilateral? >> we have some of the same questions. we like the improvements in the labor chapter, which means there are specific protections against gender discrimination in the workplace, for the right to strike and determine what is included in the minimum wage against forced labor. these are all improvements over agreements, particularly, specific provisions that ensure that mexico will get rid of its protection contract system. which is a sham to suppress agreements,unions and wages. if that will not be enforced, which was not clear among the clear, thenl is and it will not be enough to deserve working peoples of support across the continent. but we are still fighting for that. amanda: so at a higher level, getting any deal across the continent is better for workers. jobs would have been lost in the
absence of a deal on both sides of our border. we think liked pot -- prime minister trudeau was saying, no deal is better than a bad deal. what we have now was a bad deal for working people across all three countries. what we are seeing in all three countries as a result of nafta, but also other bad trade agreements and decision domestic policies are increasing inequality, wage suppression, jobweakening of unions, displacement without adequate andort for working people, empowerment of corporations. we think that all can be improved by better deal. we are still investigating this one and trying to make sure it contains truly effective mechanisms so that we reverse the trend of the old bad nafta and get to a new nafta. chapter thatey
allowed corporations to sue government has are moved so some of the powers to corporations are been lowered, and there provisions that is the content requirement for auto parts that do protect north american jobs in a way that someone say is not global free trading. >> free trade isn't really the answer. what works are rules that make sure that families and working people and their community, and the environment can benefit. ors not really more trade less trade is good or bad, it's what are the rules of trade, is fantastic there will be no special privileges for investors between the u.s. and canada. a remains in a reduced form between the u.s. and mexico. -- it remains in a reduced form between u.s. and mexico. the auto provisions seem positive but what makes them work are workers who can organize to get their wages up in mexico. that helps workers in the u.s. and canada. shery: from your statement it clear,hat one thing is
when you look at the deal, one downside will be the prices of medicine for working families going up. >> absolutely. and that's a bigger deal in canada and mexico than the united states. the united states currently has pretty bad laws in terms of that, pretty broke -- pro-big pharma. this would force a change in mexico and canada's domestic laws with respect to human oblique power for brand-name pharmaceuticals. we will be working with allies to get those provisions changed, if we can change them, the u.s. will have an opportunity to reform our domestic laws. shery: we will leave it there. thank you for your time. coming up next, do banks have the same capacity to fight a global credit crisis today as they did 10 years ago? we will hear what stanley fischer thinks after this. this is bloomberg.
shery: this is bloomberg markets, i'm shery ahn. amanda: and i'm amanda lang. at 10 years ago, monday, central banks around the world acted in concert to fight a global credit crisis. i spoke to stanley fischer and asked him if those in had the capacity to do so today. , everyone wasisis petrified. but with the difficulties we have today, i doubt it. amanda: by difficulties do you mean geopolitics? >> yes. it would be very difficult to get together and announce this
is the way we are going to run the world. amanda: interest rates to remain low, most banks have started the path to normalization. do they have the capacity to act if they need to? some of them do, clearly some have. i should say the fed board is very high quality, the administration chose well in the administrative -- and the people it has put there. they are good. id. think they're going to say whatever you say boss. -- i do not think they will say whatever you say boss. amanda: so political interference won't work gekko >> -- work? >> if someone is pushing you every day it might affect you, but they would not be raising interest rates because of it. amanda: should they raise more
aggressively than they are? >> they don't think so at the moment, and i'm inclined to take of theommendations thousands of people who work in the fed seriously. because they are good. amanda: the concern raised is that they lack the liquidity or that loss of liquidity would be a market shock for investors in the economy. and we should not leave it too late. do you buy that argument? >> not really. that it fed is doing is is and at no cost, if they have not taken measures, and the private sector has not taken measures, it would be a pity. but they should have done it and they had lots of warning. and most of the big banks, the central banks, have tried to explain what they are going to
do, why they are doing it and gives some idea of one interest rates will move. that seems reasonable. if you decide that the market does not get it, then you have to do something different. like tell them. amanda: you may have seen the argument of the loss of liquidity is already showing up in emerging markets, that could be the beginning of a big global correction. >> you could say that, and it may be right. but it doesn't look big at the moment. for the countries involved it's obviously a huge problem for each of them it's in a crisis. the argentines, turks, and so forth. but that is and global yet. the central banks manage well, i don't think it will be global. but you can never predict with certainty in this business.
amanda: another argument that thebeen advanced lately on anniversary is that we did not really learn the lessons we need to learn from the financial crisis. we have not done what we need to do to avoid it again. >> that's complicated. let me say what i think. dodd-frank in essence, and the work of this financial stability board put in place a much better system. we may not have learned the lesson because we are already going back from that framework, and easing up on it. i don't think the lesson of the last crisis was ease up on everyone after you have corrected the problem. i think we have to be very careful that we don't think that because we had three years of stability that we have solved the problem. it's very hard dealing with the problem that happens every 10 or 20 years, or even 40 years.
you don't know if it's coming again or if it isn't. better safe than sorry on these things. amanda: do you worry it will come again? if the trend of easing up is done on dodd-frank goes too far, yes. i don't think we're there yet. one of the reasons people are complaining about that is that they are worried that could happen. amanda: that was my interview with stanley fischer. coming up, -- after millionup, dollar penalties big traders are being watched more closely and how banks are cracking down with compliance next. this is bloomberg. ♪
chances with compliance. some currency traders are feeling the heat and watching their language. we have reported here with this a story. how are they snooping? >> they are snooping in a number of ways, traders are being watched all the time after the scandal, emails, chats, phone calls, they are all being monitored by surveillance software. it's sophisticated that monitors for keywords, anything that talk ondicate let's private phones, or collusive behavior. they are triangulating this with trading records, if you trade at a strange time when the pricing is off, even making too much money, that could be a red flag. amanda: increasing surveillance make sense in the wake of those settlements but they are picking up on all kinds of behaviors. what can get traders and to trouble. >> a lot at this stage because
the banks are so nervous about foreign-exchange markets. i spoke to some who said that when they swore on the phone or email, they would get pulled aside by their managers and told to straighten up. this may sound trivial to people in the markets, but in foreign-exchange, a lot of the chats that have come to light have been very embarrassing and in some cases tip the balance against the banks in terms of proving whether they had bad intent. shery: this all comes in reaction to this is scandal, $14 billion in fines, how has the market changed? >> dramatically. not only is it difficult -- different on the desk, the trading desks are passionate places, but people are being told to rein in their behavior and we have a code of ethics across the foreign-exchange industry, and 300 firms have signed up to it. there has been a huge effort to
clean up the market. but there may be a black guy here -- black eye here, because the traders who participated in this chat room will be going on trial, so it could be a reminder that the bad behavior in the past could come back to onto. for that.ank you if you watch the and stock today you saw it powering higher after we learned that honda would make a big investment, a three-quarter billion-dollar investment in the vehicle units. a big vote of confidence from gn -- gm. still at 3%. may 7 this coming after vision fund put in another $200. take a look at what the president of gm had to say on honda's investment. the main item of employment will be that we are operating at the right level of safety, then
we will deploy. this partnership with honda really accelerates some of the efforts that come after that, particularly we will work together on a jointly developed purposeful autonomous vehicle that we will be looking to roll out in the next stage of scaling after our initial deployment. shery: gm is now seen as a serious contender to googles waymo economist vehicle unit. that's it for this edition of bloomberg markets, if you missed out on any of our charts, g tv is the library function. go to our terminal and check it out. this is bloomberg. ♪
president attacked the credibility of dr. ford, who testified before a senate panel last week. senna minority leader chuck schumer said the president has reached a new low, suzanne collins said the president's comments were just plain wrong. and jeff flake told nbc that it's appalling. state mike pompeo has announced the u.s. is canceling a 1955 training with establishing -- this follows by him ruling from the highest court to lift sanctions on iran is that affect imports of humanitarian goods. in july, they alleged violence -- violation of the treaty. they challenge the