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tv   Bloomberg Markets Americas  Bloomberg  October 18, 2018 10:00am-11:00am EDT

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vonnie: here are the top stories we are covering from the bloomberg and around the world. u.s. stocks open lower. hawkish tone to the fomc minutes driving the move to the down stock. -- the downside. fromll be hearing maree.irman jacko and president trump meets with secretary of state mike pompeo, concerning the disappearance of jamal to show the -- jamaal kashoggi. let's check on the markets in the red moment ago. abigail: the bears are in control this morning.
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the bulls and the bears are battling, and we have the dow, the s&p 500, and the nasdaq solidly lower, near session lows. the s&p 500 puts this in context, now down nine out of the last 11 days. the sellers are taking over around trade tensions and a lack of confidence. a big move up for stocks this year, so perhaps too far, too fast. this is a one-year chart of the s&p 500. is an uptrend, but it is moderated by the choppiness earlier this year. the buyers are in control, especially when we are above that 250 day moving average. that 200 daysting moving average. the buyers took over on strong earnings, strong economic data, and more recently on concern around rising rates. we see the sellers have started to step in and the buyers disappeared below the 50 day moving average.
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it is considered to be very bearish. the buyers have disappeared. some technicians would consider this to be more bearish than the fact that we have the s&p 500 testing the 200 day moving average this week, posing below ince 2015.es s people are wondering if this could produce another high or if it is a bear pennant. it might be a bear pennant -- if it is, it would confirm below the last low and carry and extort married target of 2500. stay tuned for that. some optimistic figures on the day. invesco, up tw -- up 2%. roughly 240ve them $6 billion in assets. we also have praxair and linde trading higher.
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as for some of the weakness, the worst sector is the industrial sector. textron, down 7.2%. they put up a big mess on the top and the bottom line. they also have weakness in their aircraft segment. here from seales down-- sealed air corp. 7.6%. bank of america has cut their writing to a neutral on those shares, and finally, united rentals beat, but those shares down 6%. they also boosted the outlook. the reasoning there has to do with pricing and margins. the shares are down 30% since the last tie back in september. the industrial group is reagan we sit -- is weak in recent weeks. vonnie: as earnings season continuance on pace. we also have concerns in china. the country's stock market and currency have been taking a hit --my and -- amid on growing
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taking a hit amid ongoing trade tensions and slow consumer growth. it seems like china has a plan for its currency and his -- is executing that plan anyway. >> the last announcement or lack of announcement takes the takes the off -- pressure of protecting the currency. we were just starting to see the u.s. dollar not be the main driver of msci emerging market'' relative performance. for, it was dollar strength equals ems equities underperform , and we were going to a point where it did not matter as much. we also had china being the most correlated to the currency ever on record in the shanghai composite. going back to the time where we are getting dollar strength, any emerging market currency weakness, that is not a great
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sign for global growth. the is one of the things fed is worried about that they highlighted in the minutes yesterday. vonnie: this is a chart that you can check out in your library. the shanghai composite earth is the s&p 500. -- versus the s&p 500. we are now back down below 1%. thing tone interesting look at. it does not tell us that much, but at the same time, china is in the background, no matter what happens with u.s. earnings season, china will be the big story in 2019. now. it is a big story this plays into the idea that hey, we will get this from china later and be hoping for any signs of stimulus or a pickup there, because there were two or three ends, possibly, to the divergence trade. either it keeps going, the rest of the world catches up, or the u.s. catches down to the extent that china is weekend we see
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u.s. equities, especially tech and industrials, which are sensitive to higher interest rates, it sends the message that the downside resolution could be more than what we will hear. guy: and the chinese authorities are stepping in to protect the stock market -- it is down, and down hard. there was no evidence apparently -- and the foreign exchange markets. what are the chinese going to do to stabilize the stock market? we are into force selling and people are beginning to get really worried. do you hear about local accounts feeling a lot of pain at the moment? luke: that is the thing, to the extent that we think the national team -- that is the state own funds that tend to support chinese equities -- they preciselystepping in to prevent that type of force selling by propping up the sto to that would be most keen have margin calls on them, and it does not seem like that has been working. if you arere is
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giving the chinese currency and the chinese stock market really strongly correlated again, which one do you have to protect to risk appetite recover? it is the currency that will be the lever they have to pull to protect the stock market. guy: is there a line in the sand? the one of the things -- one of the things the chinese are concerned about is where we get capital flight out of china. they put the brakes on that quite significantly, but does that read excel or a north of seven? if you take a look at the options -- that re-accelerate north of seven? if you take a look at the options, the market is anticipating we get there. case,i think that is the and i think what will matter here, again, is pace versus level. i think the pace of fast,iation, if it is will worry china more. weaker where having a
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currency is more a downside for china. that is something that will -- that they will move to avert and protect against. but i think it will be this beat of the depreciation of the currency. wa, thank you.a president trump's attacks on the fed exposed what might he noted as a vulnerability. let's bring in our chief u.s. economist. we have a wonderful story today. would you summarize it for the audience? >> if we look at the past several inflation report, i have lost count now. -- i was counting on one hand, i have to go to do. we have had seven inflation reports that have come over on this side. so this is the core deflator, the expectations in the michigan -- the university of michigan consumer sentiment series.
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all of these indicators -- excuse me, the vector, as tom keene says, is not pointing up. it is moving lower. think we are going to get to the end of the year and see the fed's preferred inflation gauge just off of 2%. your you are not on inflation target, which is the argument the president is making, why do we need to keep tightening policy at the current pace? guy: there is an argument that the fed is doing a fantastic job, generating really decent lowth, we have unemployment. we are not getting inflation here because it is perfectly timing the rate hikes to compensate for the growth that we are seeing and the tax stimulus that is coming in. monetary policy act with a long and variable leg, so we can use the past tense and say the fed has vertically calibrated policy, and when we look at the has not beend
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moving as rapidly as in 2018, for instance. there is a case to be made that maybe they should be considering moving slower. to hitting their mandate, so if we are just off of 2%, jay powell and company are going to say well, we are close to our target. that is the main point. we do not have to be exactly at 2% to feel confident in our target. vonnie: is there a danger that because president trump keeps on harping about the trouble with a fed that it will make it more difficult for the fed? carl: that certainly paints them into a corner. in an op-ed piece earlier this week, it did mention that this runs the risk of causing the fed to have a thicker skin and be to not say trump's man at the fed delays rate increased. they want to avoid that perception of political sensitivity, and that could lead them to keep their head down and keep tightening to show they are not responding to that. reading are not purely
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economic and financial market signals, then you risk ignoring important signs. guy: how much of the dish inflationary effect -- the disinflationary effect at the moment is stimulated in the u.s. economy? carl: of that amount. import prices have been rolling over in response to both slower global growth as well as -- more specifically, the appreciation in the dollar. a stronger dollar drives down import prices. the strength that we have seen already this year i think will push import prices either to zero or maybe into mildly negative territory by the end of this year. ways on prices more broadly, and when we look at a cpi, servicecore prices are running at a fairly but steady prices are in a deflationary territory.
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as long as the fed is the most aggressive game in town in terms of normalizing policy, as the ecb only moves very quietly towards normalization, the back of japan -- the bank of japan for the rough, this is likely to persist. guy: i guess the challenges raising rates without raising the dollar too much. carl: a basic fx model. alwaysrl riccadonna, fantastic to have you on the show. let's catch up on all the news with kailey leinz. kailey: president trump is threatening to use the u.s. military to shut down the border with mexico. he wants to stop what he calls "an assault i a caravan of migrants by central america." the president is considering cutting off aid to guatemala, i hope there is -- what, honduras,
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and el salvador. according to a note from the bank, the odds are higher than 80% over the next three years that the u.s. will fall into a recession. jpmorgan is more optimistic than the feds recession tractor. fort-time applications unemployment benefits fell more than expected last week. meanwhile, continuing claims dropped to the lowest level since 1973. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz, this is bloomberg. guy: i want to take you to brussels. somea merkel is laying out comments at the moment. this is the end of summit press conferences. the german one is next to a french one. theresa may will be speaking
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soon as well. what she is indicating is that insufficient progress is being made on brexit, which is no surprise. the leaders want a good relationship with the u.k., but time is of the essence. she is talking about welcoming the conversation that is happening with wilbur ross, viewers commerce secretary -- the u.s. commerce secretary. not think they saw things i die. we are live from london, we are live from brussels as well. we will hear from theresa may very shortly. i'm guy johnson, this is bloomberg. >> i have these talks will have a good result. thank you. ♪ thank you. ♪
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guy: live from london, i'm guy
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johnson. vonnie: and in new york, i'm vonnie quinn. this is bloomberg markets. byesco is moving to oppenheimer funds. we are joined now by the reporter who broke this story, katherine chiglinsky. these have improved the shares of the companies. what has to happen here to do the same? katherine: the deal has struggled a bit. when you are trying to build scale, there are hiccups in terms of adding two companies together. invesco thinks will be different. part of that is the structure of the deal. in the terms of the deal, massmutual options become a shareholder in invesco. when we talked to the ceos this morning, they were pretty adamant that this is an investment. them to be a partner with this. i think it will be interesting point to howy
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invesco has handled deals in the past. it will be interesting. it will be interesting to see if they fully sustain and improve the shares like is done today, ofif it will be a challenge combining two large firms. , i was talking to one of the people involved in those larger deals. you talk about these guys -- did they feel like from a cultural point of view they were on the same page? katherine: to an extent. they said it is still early days in terms of how they will structure this combination, right? they are not sure about whether they will fully integrated or it will be a standalone thing, which makes sense. the deal was signed this morning. but they do talk about how oppenheimer funds will add a lot of asset management, which is different. obviously invesco has grown so huge in the passive space. that way they are adding more of a complementary thing rather than piling it on one particular
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area. vonnie: why is this? why is the strategy they are taking on the passive side -- now they have a bunch of active strategies to work with? katherine: active management has been in a secular decline. why are you betting on it? they pointed us to the fact that they think we are piling too much into passive, frankly. we are investing way more in that when we should have more diversified sets of income. i think it will be an interesting time to be saying that. markets are a little more volatile and people are questioning when the end of the cycle is. for invesco, they want to be ready to have all options for investors when that time comes. vonnie: katherine chiglinsky, nceomberg news' finac reporter. this is bloomberg. ♪ ♪
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vonnie: live from new york, i'm vonnie quinn. i'm guy in london, johnson. this is bloomberg markets. time for the meeting moments, and we are focused on the latest volatility in the financial .arkets taylor riggs has more. taylor: joining me today is mike moran, a pension strategist at goldman sachs asset management. is veryng of this suspect. you put out a report about how it talked about the time is right for corporate pensions to start de-risking. why now? fundedt is all about levels. over the past 12-24 months, this has risen quite dramatically. that has provided an incentive for the plans to think about taking action in their portfolios to lock in those gains and funded status and reduce asset liability mismatch. there have been a confluence of factors that have led to levels going higher. interest rates are up about 60
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basis points, they have risen about 40 basis points and about -- in about two months alone. so higher interest rate increased funded levels. despite the fact interest rates have been rising and taking into account the recent market volatility, the s&p 500 is up about 6% or 7% this year. so u.s. equities continue to do well. third, we saw a significant amount of a voluntary contribution activity this year by plan sponsors. a lot of it was tax reform related. you take that together and that has helped to augment funded ratios. through the end of september year to date, the status is up about five percentage point, up about 10 percentage points since the end of 2016. this is why the stars are aligning for plans to take actions in their portfolios today. equities, go into long duration fixed income. is that it, or is there something work on located f -- more complicated going on?
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mike: some people might hear that and say, going into long-duration fixed income seems risky. curveng end of the has moved higher and maybe it will move higher even more. how is that a de-risking action. when we think about corporate butions, it is not just --, is in conjunction with corporate liabilities. they are valued based on market interest rates. if you want to better align asset volatility is, the best asset will be in long-duration fixed income. this is not about making a call on interest rates or equity valuations are credit spreads, it is about trying to take prudent risk management actions even the rise of funded levels we have seen. the other thing in terms of de-risking actions as that other plans might also take some actions in terms of trying to transfer some of these two insurance companies. int is a trend we have seen
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the past couple of years and is a trend that will not only continue, but maybe accelerate. muni plans often follow corporate. do they follow any time soon? mike: many of them are specific to corporate and not public. closedrporate plans are and frozen. they are not providing this benefit to their employees anymore. their liabilities are not growing from new -- a cruel. so it becomes more of a story of trying to lock in that funded status. so their long-term investors are taking more of a total return approach. there is also the regulatory angle. many corporate plans fall under the list of regulations, the pension benefit guaranty corporation. changedgulations have in particular as the premiums paid have got higher. that has provided an incentive for corporate plans to do you risk. public plans do not fall under a risk or the pbgc, so they are
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not subject to those factors. taylor: always an interesting discussion with mike moran, of goldman sachs asset management. vonnie: and thanks to taylor riggs for our muni moment. stocks are lower, the major indices down about half a percent for the dow in the s&p. the worst performer in the s&p, activision blizzard, down 8.5%. the world of warcraft game not really doing it for players. --also have the nasdaq index, the laggards today, down three quarters of 1%. .e have gold futures still up this is bloomberg. ♪
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vonnie: live from new york, i'm vonnie quinn. and from london, i'm guy johnson. this is bloomberg markets. vonnie, let's talk about what is
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happening in the markets and in brussels. as you can see, jean-claude tusker is alongside donald , answering questions at the end of the summit that has just concluded in brussels. some progress being made on the issue of brexit. it is hard to see where that is right now. then you have the issue of the italian budget as well, which is an ongoing conversation. euros are the italian news agency, reporting that we were a lesser -- to the italian finance minister, raising concerns about the budget handed in by rome. the ftse 100 is flat on the .08% at then by moment. there is the bcp yield -- you have seen a bond swap to sedate -- bond swap today, which has pushed the terms out a little bit terms of duration for the italian government, but the
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spread between bunds and treasuries has widened out again. and we also want to talk about ny is rightllar-c now. how will the chinese authorities react if and when it pushes through seven? let's get a bloomberg first word news update with kailey leinz. s&p global ratings warns that the uproar over the death of journalist jamaal could show oggi couldal kash delay or dilute the decisions that could make the economy less dependent on oil. turkish journalists have said the saudi team killed the journalist istanbul. president trump says if necessary, he will mobilize the u.s. military to stop it by closing the border with mexico. the president has also threatened to cut off foreign aid to honduras, guatemala, and el salvador if they do not stop
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the immigrants. this happened hours after the u.s. treasury averted escalation in the trade war and stopped --rt of declaring try to declaring china a currency minute you still, treasury secretary steve mnuchin made clear they will be watching closely. were down 8/10 of a percent from august. that was led by the biggest drop in food spending in almost three years. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz, this is bloomberg. guy? guy: kaylee, thank you very much. the international story about south africa has soured this year. the enthusiasm surrounding president seal around pose a -- weakened,phosa has
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following a volatile rant and a typical mobile environment -- volatile rand and -- global environment. and an investment envoy for president ramaphosa. think you were taking the time to join us,? -- join us, jacko. you were acting as an investment envoy for serial drama pose a. how big of a challenge is that turning out to be, as south africa has the issue of a volatile rand, a global backdrop that has gotten more difficult. what questions are you being asked? areo: obviously, we concentrating initially on all the companies -- there are thousands of them -- which have some link and some interest in south africa.
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one of the benefits of our industry is that we have many for encompass trees -- many foreign countries with subsidiaries here, so we are not moving into virgin soil, virgin territory. but they are asking questions the political issues, which are reasonably well understood. the fundamental thing for a foreign investor is, am i going to see the growth and what is the return going to be on my investment? guy: and will i get that investment back? how big an issue is the land story in terms of the conversations that you are having? investment into a country, i want to make sure the rule of law is wrong enough to ensure that that investment remains mine and the government does not seize it. how big a factor in terms of the conversation you are having are
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the land reforms being proposed bythe rum oppose a -- president rum oppose his administration? fact that we have to have land reform and deal with some of these issues is clear to all. if you read what the president wrote a month or so ago in the financial times, published widely about what he was trying to do and how he was trying to do it's -- there was no sense that there were going to be land seizures or any disorderly here -- any disorderly profit. no -- i do not get that sense from the people that i talked to. if you are a very large farm owner, you might be asked whether or not you will be asked to share a portion of your farm
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it isour workers vonnie: a 100 billion dollar target and within five years. is that achievable in terms of investment in south africa? i think so. first of all, a five-year target is essentially roughly 50-50 between domestic investment and foreign investment. we are talking about fixed investment here. if you are talking about raising $50 billion over five years, i do not think that is too difficult at all. did onetandard bank, we transaction for $5 billion and have had pledges -- not thattments, but pledges add up to around $35 billion already. these still have to be turned into real life projects, but they are there in principle.
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as we talked to many of the multinationals that have --rations here, many of them we are not talking about brand-new investments, but adding new plan cents 's -- all of these will count toward our content. vonnie: what are the concerns that both domestic and foreign investors, potential investors are raising with you? well, i think the biggest thing -- if you are looking at building a factory or a long-term investment, clearly you want to know that the returns are going to be there and the growth rates are going to be there, and it is largely about the economic policies. harvey's policies growth friendly? are they investor friendly? i think that south africa has work to do in that regard, but ramaphosa'sresident stimulus package he announced
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two months ago, there were many areas where the clarification was given. i hope that over the coming weeks and months, there will be more. i hope we can induce people to invest year by promoting good growth policies, which is the trend we see from the current government. is a question that vonnie and i were curious about enceell and we have audi members writing in and asking questions about this very subject. when you go out there and talk to these investors, top of the list, what do you think the biggest investment opportunities africa?outh jacko: we're talking primarily who have interests in their particular industry or field. we are not talking to greenfield investors at the moment.
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think if you look at south , we have really underplayed our strengths in mining. we should be much bigger in mining men we have been, and we know have something to chart that has been more or less finalized. in the areas of energy, we have big opportunities in water. the plan was well-publicized, the opportunities there. agropportunities in , andessing and agriculture we have to rebuild a manufacturing capacity in south africa. there can be a range of opportunities in that area. south africanree, banks have been able to withstand slowing in the economy for the most part.
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how much longer will they be able to do that? i am no longer an executive at a bank, but i am the chairman of standard bank. i think that the banks her are very welle structured and capitalized, conservatively run. i really don't think that there is any looming problem for the banking sector in south africa at all. i think our banking sector has been resilient through various crises in the past. we came out of the global financial crisis very well, and i think it is more a case of -- what does growth look like rather than anything more serious than that. jacko, let's talk about the global environment. the fed is raising rates. i remember talking to one of your finance ministers, and that was his biggest concern, was that the fed would raise rates to quickly. we have seen incredible
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nd overity in the ra the past couple of weeks. the problems that south africa faces are external. in terms of the balance you see at the moment, clearly south africa is being buffeted by some of these factors. yes, and we have seen this in the past. south africa is a liquid emerging market, so our currency always reacts quite sharply when there are ripples in emerging markets. fortunately, our foreign dollar-denominated debt as a country is really pretty low. most of it is domestic debt, debt.enominated but clearly, the global environment is not helping us. when you look at the growth around us, when you look at the sub-saharan africa, which is predicted to be in the 3%-4% range in south africa is
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growing at less than 1%, it is clear that most of our challenges are self-inflicted. , formerjacko maree standard bank ceo, thank you for joining us. wonderful interview. this is bloomberg. ♪ erg. ♪
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guy: live from london, i'm guy johnson. i'mie: live from new york, vonnie quinn. this is bloomberg markets. president trump is meeting with secretary of state mike pompeo at this hour, concerning the death of journalists jamaal khashoggi. what are the president and the secretary of state discussing, especially given that congress is not too pleased with the apparatus right now? are seeing is that
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the secretary is essentially briefing president trump on his two days of meetings in saudi arabia and turkey, bringing back to the president what he heard from the saudi's in terms of the crown prince's defense of that government and denials of any involvement in the death of jamal khashoggi, and also their promises to conduct a thorough investigation. this is the challenge the u.s. has had all along. the president is really unwilling or at least extremely reluctant to sacrifice the u.s. relationship with saudi arabia, despite this mounting evidence that there was some sort of government involvement in the journalist's death, and also trusting the saudi's to conduct an investigation on their own, basically taking their word that they will get to the bottom of what happened to that reporter.
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that they will get to the bottom of what happened to that reporter. guy: will there be any communication with the hill on this? any briefing for congress as well, as this seems to be one of the fault lines that is now emerging between the white house and congress? a great question, because the head of the senate foreign relations committee, bob corker, the senator had essentially said that he was not getting what he wanted from the administration, that he was not information they needed from them. they needed a briefing and it .ad not come through there is frustration rising on the hill, that they are not getting what they need, otherwise, from this administration about what the administration knows about the death of jamal khashoggi and what they plan to do about it. safe to say, congress is taking a much harder line about this. there is talk of suspending weapons sales to saudi arabia, for example. you so much.nk
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vonnie: time for our bloomberg quick take, where we provide context and background on issues of interest. china's technology industry has become a serious competitor to silicon valley. how quick take explains china went from copycats to cutting, and how the u.s. government is crying foul. >> -- with many more of and coming startups making their presence felt. the industry has become a rival to silicon valley. this is your bloomberg quick take on china's tech giants. chinese companies like tencent had a reputation for being copycats. q instant messaging app looked a lot like a popular instant messaging app used in the u.s.. there earlyem got
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in a {and equivalent, seeing, for example, there portal business was an equivalent of yahoo!. ofbo was an equivalent twitter. alibaba, their model is a hybrid of ebay and amazon, so the list goes on. >> comparisons are harder to make. tencent'sging -- has nong app we chat u.s. equivalent. since the introduction of the internet in china, the government has controlled the web with a complex system of sensors and gateways known as the great firewall. this has quarantined china's technology ecosystem. that has allowed local companies competitionithout from abroad. because of china's population,
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the internet users double the entire u.s. population. the companies grew to be massive. they became so successful, u.s. companies are taking note. >> i think a lot of people are pointing to facebook trying to copy the we chat model, where they are allowing third parties to open e-commerce stores, third-party games being introduced on the platform. >> but there is increasing pushback. president trump: china. they are draining us. they are taking our money. they are rebuilding themselves. >> president trump says china is stealing business overseas, and has a post tariffs. years ago, we were seeing a lot of investment in technology in silicon valley from chinese companies. that has now been put on the brakes ever since the trade war. >> but chinese tech company names that only recently were
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heard outside china are becoming familiar. they reached a pinnacle and 2018 by taking over -- shares globally, but they will need to convince other nations they mean no harm. more about can read china's tech industry and other topics, just look on the bloomberg. guy: we are monitoring a number of dissident situations that are developing both in brussels. we are waiting for theresa may and waiting for an update out of washington as well. we will also be back, talking those chinese stories as where the yuan goes next. we are also waiting for mike pompeo to speak shortly as well. we will bring you that. this is bloomberg. ♪
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>> we made clear to them that we take this matter in respect with very seriously.
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they understand the serious nature of the disappearance of mr. khashoggi. they also assured me they will conduct a complete, thorough investigation of all of the facts surrounding mr. khashoggi and they will do so in a timely fashion. this will be transparent for everyone to see, to ask questions about, and to inquire about. i told president trump this morning that we ought to give them a few more days to complete that so that we too have a complete understanding of the facts surrounding his death, at which point we can make decisions about whether the united states should respond to the incident surrounding mr. khashoggi. i think it is important for us to our member -- we have a long -- since 1932 -- along, strategic relationship with saudi arabia. they continue to be an important counterterrorism part in, they have custody of two holy sites, and they are a strategic alliance of the united states. we need to be mindful of that as
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well. when i traveled and met with president erdogan, he talked to me about the incident and told me they were conducting their own investigation. we had a chance to meet with some of the team involved in that. he assured me that they would share their results with the saudis as well. we believe between these two efforts, a complete picture will emerge for what actually transpired here. we are working towards that and looking forward to that. we are expecting it will be done in that way. should saudi arabia be trusted to conduct a fair and partial investigation -- and impartial investigation when they are suspected in the disappearance of jamal khashoggi ? >> we will get to see the response for all of the kingdom of saudi arabia. when we see that, all of us will be able to make a determination with respect to the credibility and work that went in that. if it is fair, transparent and the way they made a personal
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commitment to me, and the ground grants also made a personal commitment to the president when he spoke to him the night before last. >> do you believe that it is [inaudible] of stories outts there about what has happened. we are just going to allow the process to move forward and allow the facts to unfold. as they unfold, as we make a determination for ourselves about what happened, they are based on the facts and the united states will determine -- [inaudible] >> do you have any evidence of audio or video from the consulate? vonnie: secretary of state mike pompeo speaking to reporters. he met with donald trump for quite some time this morning. he said he told president trump that we ought to give them, referring to saudi arabia, a few more days upon which to conduct an investigation. and then we can make decisions, he said, as to whether that as whether to respond and how.
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he also made a point of saying the u.s. has a long history with the kingdom of saudi arabia and they are an important strategic ally of the united states, and they need to be reminded all -- mindful of that. he was also asked about the relationship in turkey and whether they would trust the investigation of saudi arabia. he said there are lots of stories about what has happened and he would be giving saudi arabia a couple of days before deciding how to respond. is one event we have been covering. theresa may started speaking a couple of minutes ago. let listen to what the british prime minister has to say in brussels. inyou have been straining the past couple of years to keep all the promises you have made, whether it is to remain her's, for their -- -- remainers, northern ireland there's -- you are going to have to disappoint someone who. who will it be? >> we have put forward a proposal to the british people
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that would ensure that we would enter the movement and jurisdiction of the european courts of justice, and sending vast amounts of money to the every year.on agricultural policies, common fisheries policies, but to protect the integrity of the union of the united kingdom -- that is a proposal that i believe is good for the u.k., but also would be good for the european union. tom? >> thank you, prime minister. past 24 hours, if you don't mind me being a little blunt about this -- >> you have been blunt before, tom. >> you have angered brexiteers, you have angered remain ners, and you appear to have angered your leaders by not bringing forward any concrete
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proposals, and they even met without you last night. these were always going to be tough negotiations and they were going to be tougher before we got to the closing stages. yes, there are some difficult issues that we are still working through. crucial among those is this issue about the northern ireland backstop, making sure we can provide for a solution, which is not the solution that was produced by the european commission initially, which would have effectively carves northern ireland away from the rest of the united kingdom. that is unacceptable to the u.k. government. i believe it would be unacceptable to any u.k. government. on that issue, further solutions have been put forward. but we want to work to get through that so we can actually get through the deal, which i believe will be good for the british people. that is what we are working through these tough negotiations for, delivering on the vote of the british people, and doing it in a way that protects jobs and our union, is good for the u.k.,
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but will be good for the eu as well. jane? prime minister, with every compliments you may's -- every compromise you made with these talks, doesn't it become less and less likely that this deal, that your party will ever be able to get behind this deal? >> first of all, let me address this issue you have raised about and thential extensions transitional implementation period. this is an idea that has been around before. [inaudible] it has always been very clear that we would enter into the implementation period with the by, and that would and december 2020. but now the idea is that an auction to implement the transition period could be a backstop to northern ireland.
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but we are not standing here proposing an extension to the implementation period. we are working to make sure we have a solution to the backstop issue in north ireland that enables us -- we are currently in a blockage to completing the deal that enabled us to get on with completing the deal and delivers on the vote of the british people and is good for the future of the u.k.. heather. yes, sorry. i knew i was only seeing one side. eu leaders now don't have a meeting in the diary for november. the next one is due december. if that ends up being the meeting at which a deal is done or signed, is there still time to get it ratified in parliament at all or alternatively, if there is not >> we are intensifying the work
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on these issues that remain and we are very clear. what i had from leaders around the table over the past hours since i arrived in brussels yesterday is a very real sense that people want that deal to be done. if you look at some of the comments made, chancellor merkel said when there is a will there is a way. jean-claude juncker said we should focus where there is agreement. when it and make sure it is working so we can do this deal with and that reasonable timetable. i am very aware of the legislative requirements and the house of commons and the period of time that will take. >> jason gross from the daily mail. minister hasope said that you accept the

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