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tv   Bloomberg Markets Balance of Power  Bloomberg  January 22, 2020 12:00pm-1:00pm EST

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david westin. welcome to balance of power, where the world of politics meets the world of business. on the breed today, emily watkins on capitol hill. shawn donnan here with me on president trump new trade focus, and from milan, joe colton on luigi dimaio stepping down as head of the five-star party. bring us up to speed on where things start. will we actually start today? hour we willin an see the house impeachment managers begin to make their case why the senate should remove president donald trump from office. yesterday was about process. how this trial will work and today we start to see them actually make the case. they have 24 hours over the next three days. there are a lot of people in this building who are hoping we will not be here as late as we were last night. david: it is over three days rather than two.
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that was a compromise from mitch mcconnell. who will we hear from on the democratic side? will it all be adam schiff? emily: i do not expected to be all adam schiff. you saw it yesterday him make opening and closing remarks, but you also got to see the other six impeachment managers take time and make comments. all of them have been chosen for specific reasons based on their background, based on their experience level. i imagine all of them will take a turn at the podium to make the case against donald trump. david: one of those managers was jerry nadler and he got into a skirmish with nancy pelosi -- into a skirmish with the chief counsel for the president. it cause the chief justice to say gentlemen, let's calm down. emily: it was around 1:00 in the morning. this was unique experience for many of the senators. usually senators do not spend a lot of time in the chamber. they are not sitting there for hours and hours on end.
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there is an adjustment. -- there is an adjustment period into figuring out how this will work. adam schiff use the language that a lot of people were debating whether or not it was appropriate. them say you did see when it comes to partisan bickering, that needs to be limited. david: thank you so much. emily wilkins from capitol hill. now let's turn to shawn donnan in washington. we heard from president trump this morning in a news conference and a fair amount was about trade, specifically european trade. unfinishedpe is the piece of donald trump straight agenda. he has wanted to rebalance things with the eu. there is a big trade deficit with the eu. a lot of it focused on cars. trump had this idea a couple of years ago to level auto tariffs at european imports and try to force europe to the table. over the last couple of days in
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davos, he has doubled down. he is doing it with the new european commission and a new european commission it -- a new european commission president and ursula von der leyen. after trying this approach, will it generate a big deal for the sort of deal he can crow about going into the election. david: we were on the bright and a truce that pulled us back from it. one of the issues is agriculture. europeans jealously guard their agriculture. in julyn july -- shawn: 2018 jean-claude juncker came to washington to try and stop these auto tariffs from going ahead. they hatched what became known as the rose garden truce, which allowed negotiations on industrial tariffs and regulatory issues to go ahead and for the u.s. to hold off on these auto tariffs. then i ground to a halt because the europeans -- that quickly
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ground to a halt because the europeans thought they had an agreement not to include agriculture. the french are opposed to some of the issues the u.s. would raise in any agriculture talks. congress intervened and said we would not have any negotiations with europe and last agriculture is attached. i am told europeans may be finding a way around this and talking about regulatory issues with agriculture and a new round of negotiations. whether this will work again is a big question. david: what about the french digital tax? the eu said individual member states can go their own way. mr. macron stepped up and got the president's attention. shawn: the president threatened to impose tariffs on french champagne, french cookware, french cheese, going as high as 100% tariff on some of those things if the french went ahead on the digital services tax or did not unilaterally disarm. the french refused to do that. they say they will keep this tax
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in place as long as there is not a multilateral agreement on tax. there are negotiations going on at the oecd. the u.s. and france have agreed to this week in dapo's, , and weaw -- in davos saw with president and emmanuel macron in a phone call, and again today with secretary steven mnuchin agreeing to step up the negotiations toward a multilateral deal and the french agreeing they will forgo the next ranch of payments on this digital tax. the trump administration claiming the tariffs have forced the french to cave and engage in another negotiation. whether that will go anywhere is a big question. david: president trump news conference was remarkable not just for his focus on europe, but he shared the stage with the head of the wto. is this a big move on the wto's
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part? this is something the president has been fixated on. shawn: the president has focused on the wto as one of the worst trade agreements ever created. it was created in the 1990's as a result of negotiations the u.s. led. in a thankless's place of having to mediate donald trump and the rest of the world and try to find a pass toward reform. he briefed the president today on the state of the discussions. my understanding is they are not going anywhere fast, but the president grabbed them, pulled them on stage, and wants to take ownership of that. another negotiation. david: it is the art of the deal. thanks to shawn donnan. now we go to italy and gerald poulton in milan. we have luigi dimaio stepping down as the head of his party. what is going on. why now? you are probably
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familiar with luigi dimaio, he is basically the face of the five-star movement, one of the key parties in italy. the support for the party internally and externally has been hemorrhaging over recent months. the poll numbers are quite poor. support has been slipping from inside. lawmakers have even left the party. some going to the opposition. even more importantly, the figures for the regional election this weekend for indeed for five-star. somebody has to take the fall for this. it is going to be luigi dimaio. david: what does this mean for the coalition? jerrold: initially, the markets appeared concerned that this might mean the coalition could fall apart. we could see snap elections. we could see a victory for the league party. on second thought, the coalition
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is made up of a couple parties that need each other. weak, but the democrats are not strong enough to take on the lead themselves. i do not think it is in either of these parties interest to face a national election. they will stick together and try to find a way to forge ahead, even though they are two groups that do not like each other very much. david: if five-star is losing support, is it going to one place? where are the supporters going? jerrold: that is a very good question. a lot of the support is going to the league. the league's numbers have grown as five stars figures have fallen. that is the main concern for both parties is how strong the leak is now, stronger than when salvini pulled out of the government this summer. david: thank you so much.
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it is time to get a check on how the markets are reacting to today's top stories. joining us is abigail doolittle in new york. i am not sure it is what we talked about. are we not concerned about the virus? abigial: that is probably the bigger influence. the bulls are back in charge. today lots of green on the screen, record highs in the major averages, including the s&p 500, the nasdaq outperforming, up .5% due to tech being the best sector on the day. behind the tech strength, take a look at the philadelphia semiconductor index, outperforming, of 1.5%, this before texas instruments reports tonight, ticking off the chips reporting in this earnings season. an all-time high for the stocks. one interesting divergence is the dow transports. certainly not down. take a look at tesla over last few days.
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right on the open this morning, crossing the $100 billion market cap milestone. the shares up more than 200% since the lows last spring and over the last few days, up more than 15%. on the year, up more than 40%. it is incredible. the bulls in charge. as for other big drivers on the day, earnings. we see ibm up 3%. they put up a rare sales beat, the first time in six quarters where sales group. profits also beat. that had to do with the red-hot acquisition. cloud strong for them. netflix down 2%. u.s. subscribers was a miss, putting up 420 new u.s. subscribers versus the estimate of 600,000. shares not acting perfectly. the last time though shares put in an all-time high, all the way back in june of 2018.
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that stock has its work cut out. andson & johnson down 1.1% as i was mentioning after the bell, the reporting season for the chips will be kicked off by texas instruments. right now, a strong performance. hopefully the results will be as strong. lots of expectations the sector is bottoming out. we will need more proof of the earnings and start to see that tonight with texas instruments reporting. david: we will go back to johnson & johnson in a minute first let's go to mark crumpton with bloomberg first word news. mark: in switzerland president trump lashed out against his accusers in the senate impeachment trial. he called the trial bad for the country. president trump broke with some of his republican defenders. he says he would like witnesses to be called. democrats are likely to begin presenting their case against the president today. mike pompeo says he would be happy to testify in the impeachment trial if he is forced by law to do so.
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mike pompeo also told reporters traveling with him in jamaica that he is not following the trial. bloomberg's washington correspondent kevin cirilli will have an interview with secretary pompeo coming it cash coming up in the next hour on bloomberg television and radio -- coming up in the next hour on bloomberg radio. steven mnuchin is saying trade talks with china will be wrapped up on november's election. speaking at a panel at the world economic forum, secretary mnuchin said there is no deadline to the phase two negotiations. under a phase one agreement, some sanctions on china will be eased, and beijing will step up its purchases of american goods. china is ramping up efforts to contain a respiratory virus that has killed 17 people and infected hundreds. hong kong has now reported its first case of the illness and there has been one diagnosis in the united states. the fear is the disease could spread in china when hundreds of
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millions of people travel during the lunar new year holiday. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. am mark crumpton in new york. this is bloomberg. david, back to you in washington. david: coming up, johnson & johnson reporting fourth-quarter earnings. its chief financial officer is here to take us through those earnings. this is "balance of power" on bloomberg television and radio. ♪
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david: this is "balance of power" on bloomberg television and radio. johnson & johnson reported fourth quarter earnings with sales up year over year but
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missing analysts estimate. we welcome joseph wolk, johnson & johnson chief financial officer. let's start out with the bait question. analysts got it wrong. did you underperform or do they overestimate? joseph: thanks for having me here today. we are pleased with the results, not just for the fourth quarter the entire year. with respect to the investment community, we are talking on $20 billion, about a $30 million disconnect. we can speak to one time a vence, where we had elevated sales in q3. i would not say anybody got it wrong, i think it is solid performance across all three segments. oncology looks like and immunology help drive the numbers. how much are they driving the results and are you and all concerned about generics eating into that? joseph: that is a great
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question. in terms of oncology and immunology we have great scientists that for better than a decade have been bringing transformative medicines and immunologygy -- and around psoriasis and crohn's disease. we point to a product around psoriasis that grew 55% versus the fourth quarter of 2018. that continues to show best in class data. it was the first i'll 24 out there. we are addressing patient's needs for crohn's disease. it is a debilitating disease. it had its start as a product with psoriasis. we continue to expand that portfolio. , two drugsgy continue to perform well. moving into the front lines of therapy, more patients are getting treated earlier and we know that is the best diagnosis or prognosis in terms of better outcomes. we are particularly excited
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about a formation we expect to get approved the first half of this year. that will take the infusion time of six hours down to five to 10 minutes. we think that is a big advancement for patient convenience. guy: all good news for johnson & johnson and its shareholders. what about the generics. you see any threat in the future ? joseph: we have had an impact from bio similars this year. it was about $2 billion incremental to what we experienced in 2018. we have been dealing with bio similars for a few years. we had a number of products that faced a loss of exclusivity. growthck results of 5.8% you see from our pharmaceutical unit was in spite of a $2 billion head wind. we have dealt with it, we will continue to deal with it. it is an important part of the system. as we come up with new
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medicines, we want to make sure, as all good health care companies do, there's room for those to be available for patients. having generics and bio similars is part of the equations in terms of health care cost. i know you're always looking at your portfolio, what you want to add and what you want to take away. you are referring to the possible deletions of underperforming businesses today in the earnings call. you have any nominees, and just as important, because i suspect he will say i will not name any companies, how will you judge that? is it margin, operating revenue, how you judge whether it is underperforming? joseph: we look at a mindset of being number one or number two in the market in which we play. do we have that level of innovation, that level of execution that ensures we are well-positioned within the market. if we are not there currently, we want to make sure we have a good game plan. when those plants do not come to
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fruition, we will look to see if we can create value for shareholders by doing something else with that asset. similarly, we looked at where we can, we can problem it our business. about 40% of our growth has come from organic opportunities. david: talk about the so-called doughnut hole in medicare. i understand this is narrowing. that is costing companies like johnson & johnson some money. can you put numbers around it? not put specific numbers around it. what we can talk about is pricing in general. i understand why that is a topic of conversation for the last couple years. overall pricing for johnson & johnson's products over the last three years have declined. the average on that is 4%. that is not accumulative number, that is 4% each and every year. we know the white house economic advisers came out with a report that said pharmaceutical pricing
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has declined in its most recent study. we need to get more of those discounts that are being insurers and governments into the hands of the patients who need them most. people are walking into the pharmacies on a monthly basis paying 50 or $75 for a co-pay when they used to pay five dollars or $10. we need to make sure that is addressed so these great medicines are available to patients most in need. david: you mentioned drug pricing. going to 2020 and beyond, are you putting anything in your numbers for legislation on capitol hill. a lot of people are talking about something maybe even this year. joseph: we see continued pricing pressure with johnson & johnson. we have seen price reductions over the last number of years. we continue to see that trend. it is usually around some of the more competitive spaces. if you think about diabetes drugs, psoriasis drugs, where there is a lot of competition.
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you will see price negotiation more intense. david: thank you so much. that is joseph wolk, johnson & johnson executive vice president and chief financial officer. still ahead, boeing is struggling, which means its suppliers are not far behind. aerospace company arconic is in the crosshairs. this is "balance of power" on bloomberg television and radio. ♪
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david: this is "balance of power" on bloomberg television and radio. time for our stock of the hour. arconic is one of the worst performers in the s&p 500. the stock is shrinking 3% after it was downgraded because of the 737 max. kailey leinz is here with more. i thinkan can blame -- we can blame almost everything on the boeing 737 max. kailey: at least today.
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the analyst downgraded the stock to underperform from neutral because of the impact of boeing. we had boeing saying it does not see the 737 max returning to service until around june. that is another three-month delay. the faa saying it has no timetable. that could get delayed even further. longbow thinks this will have a meaningful impact on arconic's topline, could bring earnings down to two dollars a share and not 400 to $500 million off of commercial aircraft revenue. boeing is one of arconic's top customers, it second largest, with 8.3% of the revenue share. we know boeing had stopped production of the 737 max, which could be assumed of get hit to arconic's topline. david: there is a spinoff in the works? kailey: what is going to stay in the business is helmet, which is
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the aerospace division. that will keep the arconic name, that is the aluminum business. much lower in terms of profitability. aerospace business margin was above 20%. they are trying to focus more in that area. that was seen as a possible catalyst for evaluation. longbow noting that timetable may get pushed back because of the 737 max. david: thank you. that is kailey leinz from new york. up next, house republicans are heading the charge with the impeachment of president trump. we will talk to a republican from louisiana about when he led the charge. he has bob livingston of louisiana. this is bloomberg. ♪
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david: from washington, this is "balance of power." i'm david westin. for bloomberg first word news, we go to mark crumpton in new york. mark: this date is set for has
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impeachment managers to begin making their case against president trump. according to rules approved by the senate early today, they will have 24 hours over three days to make arguments. the president's defense team will get equal time. secretary of state mike pompeo says he would be happy to testify at the impeachment trial if he is forced. to do so by law. . secretary pompeo says he will travel to ukraine "before too long." he tells bloomberg that ukraine sits at the edge between democracy and tyranny. pompeo accused iran of spreading a destabilization cancer around the globe. bloomberg's chief washington correspondent kevin cirilli will have an interview with secretary pompeo coming up in the next hour on bloomberg television and radio. president trump is hinting that sanctions on iraq are still a possibility. mr. trump with iraq's president in davos, switzerland on the sidelines of the annual world forum.c
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it was the first meeting between the two since the u.s. drone strike on iraqi soil killed a top iranian general. when asked whether his administration was still considering sanctions on iraq, president trump said "we will see what happens because we have to do things on our terms." united nations experts are calling for an investigation into allegations that the saudi crown prince was involved in hacking the cell phone of amazon ceo jeff bezos. officials say information now suggests bezos's phone was hacked following a whatsapp exchange with the crown prince. saudi arabia's finance minister exclusively with bloomberg in davos. the amity in the initiative saying clearly that this is
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an investigation so we will know what happened. mark: a report by united nations experts and the alleged hack may have been an effort to influence or even silence the reporting of the washington post which bezos owns. the saudi's were blamed for murdering jamal khashoggi. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. >> is abuse of power an impeachable offense? pres. trump: i will tell you, there is nothing here. i had a very innocent conversation with a very fine gentleman from the ukraine and it was based on that. david: i was president trump addressing questions about his impeachment in davos earlier today. we welcome bob livingston who has his own experience with proceedings like this serving as republican congressman of louisiana. when it was william jefferson clinton who was the target. rep. livingston: thank you very much. david: let me pick up on that
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question. be, putelieve it can aside the facts of this case, can it be an impeachable offense to abuse your power? rep. livingston: i think the charge of abuse of power is so vague and so widespread that anybody -- any president of the united states could have been brought up on that charge. in this case, i think it is just really baseless because it deals with a ukrainian call, the transcript of which everybody has. everybody can judge for themselves. i have looked at it as a former prosecutor, i don't see any abuse of power. when we dealt with president clinton anyone years ago, -- 21 years ago, there were some firm crimes. there was obstruction of justice, perjury, the fact is that president clinton had testified under oath and he had lied, and there were people in prison the time both in the
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military and in the civilian court who had done exactly the same thing, under the same circumstances. but they were in jail. you can contrast that, justify that as an abuse of power or a crime. in this case, i don't see a. crime models up -- at all. david: a clear distinction between on the one hand the clinton impeachment, on the other hand, the trump impeachment. the fact that they did not allege a crime. on the other hand, in the case of william joseph -- joseph clinton, he lost his bar membership. four perjury. there was no accusation that did, the wrongdoing he did was misusing his office in order to continue himself in office, which under the papers, that is what impeachment was going to. putting aside the facts of this case, is there a situation where a president of the u.s. could ask a foreign power to help him continue in office that would be impeachable? bob: in this case, the president
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didn't really do that. he asked the president of ukraine to help us unlock some corruption and to discover corruption. whether the bidens were involved or anything else. ukraine was notably one of the most corrupt countries in the world. as it affected the united states, we were given hundreds of millions of dollars to ukraine, something that frankly was not done under the obama administration, but we were giving that money in order to put ties on the money. he wanted to make sure it was being spent correctly. you can say -- the democrats have said that is an abuse of power. i personally don't see it. again, it depends on which party in the house of representatives is in control. they can virtually call any president in the history of the country guilty of abuse of power. david: and as we are seeing which party is in control of the
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senate. i want to go to that point. president trump is on trial in some sense in this proceeding. also i wonder if our entire system of government is on trial, the american people are watching. if you look at 1999 whether -- when it was the trial of president clinton, and you look at today, people are saying the same things but switching depending on whether they have an r or a d after their name. bob: many of the speeches are being -- are identical. you're are absolutely right. i have to contrast the underlying foundation of these charges. in this case, i'm sorry, there's no crime alleged. back then, there were specific crimes alleged. when the founders drafted the constitution, basically, they were saying it is high crimes, misdemeanors, and then they specified bribery or treason. now, you don't have any of that. the democrats have been charging
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this president since the day he got elected. and saying they wanted impeachment. they spent two years on a for collusionhunt with russia. that came to know where. this ukrainian thing that was the firing of coal, the firing of some of these other people, all of those were within the power of the president of the united states and they can be interpreted at any way the majority wanted them. david: as a former member of the house, are you concerned we are lowering the bar of impeachment overall? that we will have an impeachment with almost every president, it is almost a political tool. bob: i think that is a danger. there are a lot of people that thought bill clinton should never have been impeached. they said it was about sex. president trump said that david: . never be impeached. bob: i was on the other cited that so i guess i have to disagree with him.
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there were real crimes. now there are no crimes. if weve to ask yourself, are going to use this one as a bar, yes, every president from now on could be impeached. david: really appreciate you being with us. that is bob livingston, founding partner, former congressman of louisiana and former speaker of the house of representatives. coming up, president trump shared the podium with the head of the wto today as they both called for reform in the international trade organization. we talk with former deputy director of the wto. that is coming up next. this is "balance of power" on bloomberg television and radio. ♪
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david: this is "balance of power."
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i'm david westin. people have talked for years about reforms in the wto. now it looks like maybe something might get done. as president trump made it a priority in his news conference in davos where he was joined by roberto acevedo, the wto head. pres. trump: talking about a new structure for the deal. we will have to do something. but the wto has been either very unfair for the -- to the united states for many years. david: we welcome now rufus yerxa, former deputy director general of the wto and former wt trade representative. welcome. good to be with you. give us your sense of what is going on. he introduced him, made a few remarks. is there a coming together of the united states and wto? rufus: i think president trump is still very skeptical of the
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wto. he has not been a big fan of trade agreements generally and multilateralism. he doesn't like to see things that will restrict his power and that sort of thing. on the other hand, he seems to be acknowledging that the wto is there and that the u.s. wants to engage in it. we will have to see how that relationship goes. obviously there will still be a lot of tension between the big players. you see the fights going on between trump and the europeans now. and of course, the china tensions will continue. those are the countries you have to make a deal with if you want to reform the wto. david: as a student of the wto, the united states has cut off their funding. really threatened them with budgets. have they got their attention? will that shake something loose? you have said there is room for reform. rufus: there's always room for reform. there is a reform program that has been going on for a couple years. there has been very robust talks on digital trade for example and how to update the rules of the
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digital economy that were agreed to at the last wto ministerial. he has threatened to cut off funding. they did not cut it off. the u.s. pays 13% of the wto's budget. this is an organization with 160 plus countries, it is not easy for the u.s. to dictate all the rules there. we have to engage in negotiation. there is room for maneuver now. and particularly if the europe -- the europeans, japanese and others can work on things like subsidies. there needs to be better reform of the subsidy rules in the wto to deal with a mixed economy like china. david: you have the subsidies in china. can you deal with that with china? the europeans have said they want to help us on that, without dealing with things like the common agricultural policy in europe. someone say that as a form of subsidy going on. you could say that about our own agricultural. rufus: the u.s. and europe have been fighting about that for a
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long time. we have made progress. bob's abeyta god in agreement ofk in nairobi a couple ministerial's past where he strengthened the subsidy rules on agriculture. there has been progress on agriculture including between the u.s. and europe. i think they are capable of dealing with each other in the wto. the bigger question is how do you develop an alliance of countries to push china in the right direction? the problem i have seen all along is the u.s. wants china to change but we are busy starting trade fights with the europeans and with our best allies in the wto system. trump has change his tune. he has to start working with these countries, showing leadership. if he expands the trade war with europe, for example, by putting autos, it is going to be very hard to get cooperation with the europeans on how to deal with china in the wto. david: address if you can one issue which is the digital tax. you talk about digital trade
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with wto. we have the oecd looking at this. what is the proper body to resolve that problem? rufus: there's always this issue of what the wto drew -- deals with. it deals with trade. what do organizations like oecd deal with? they deal with tax. what is the intersection between rules?n and trade certainly a digital services tax raises all kinds of issues about whether you are guaranteeing foreign companies, national treatment, the same treatment that you would give to your own companies. the big fight we have with it -- with the french is they have created a digital services tax that seems to focus on big american companies and exams a lot french companies are that becomes a fight in the wto if we cannot resolve it. there is work going on in the oecd to try to get an agreement. david: it is not lost on president trump how it will affect u.s. digital companies. rufus: exactly. he is shaking things up. the real question is will people trust him to do deals that rely
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good implementation by all members? that is the issue. it is an issue f trust. david: thank you so much to be havinga, we will more with him coming up next in the next hour on bloomberg radio. this is "balance of power." ♪
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david: this is "balance of power." i'm david westin. bloomberg chief washington correspondent kevin cirilli has been traveling with mike pompeo. kevin spoke to the secretary in an exclusive interview from jamaica. he started by asking him about iran backed hezbollah finding a foothold in south america. the pompeo: when you see scope and reach of what the islamic republic of iran had -- regime has done, can't forget
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they tried to kill someone in the united states of america, conducted an assassination campaign in europe. this is a global phenomenon. when we say iran is the leading destabilizing force in the middle east and throughout the world, it is because of this terror activity that they have spread as a cancer across the globe. kevin: this past week as we have traveled the world, we started in germany where you met with world leaders including angela merkel. i'm sure you talked about iran. as you know, europe has not always followed the same strategic route as the united states when it comes to iran. did your meetings with european leaders move the needle in the direction? sec. pompeo: we have been clear, we have had a different view on the right way to proceed to ensure iran never gets a nuclear weapon, that their missile program is contained in the terror regime we were just talking about is pushed back. they have never wavered from the shared objective. they had a different view on how to proceed. if you have seen what iran has done in the past few weeks, it
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is nuclear extortion. they are threatening to leave the npt. i talked with my european counterparts while i was there. they have now taken a step under the jcpoa to invoke the dispute resolution mechanism. i think not only they about the world can now see that this rogue regime has no intention of complying with the central tenants of what that agreement contained. and the world must unite to ensure iran never has a nuclear -- when i saw president macron say that, i know he means that we need to work together. kevin: when you say they have no intention, how do you get tehran to go to the united nations to come to the united nations, to work with the international community aside from the sanctions and the various military response options? sec. pompeo: ultimately, the people of iran will get what they so richly deserve, a regime that behaves in ways that are consistent with the value sets of the iranian people. in the end, the iranian people will demand of their government -- you see it in the protests.
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you see it when they walk around american flags that were put down by the islamic republic's leadership in an attempt so they could show pictures of iranian people walking over american flags. people go out of their way not to do that. this is not about iran versus the united states. this is about a regime that has treated its own people terribly. the world can see it. it is a regime that even now the iaea is trying to figure out how nuclear material got two places at the iranian leadership said it would not be. this is a global risk. president trump started his remarks a night after an american response by saying, iran will never have a nuclear weapon. but we have a broader set of objectives that we want them to behave like a normal nation and reenter the society -- the community of nations. kevin: traveling with you all week, i'm struck by the range of hotspot issues around the world that are going on. back home, the only thing that we have been talking about his impeachment. did that come up at all in your
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conversations with world leaders, and has the senate impeachment trial endangered u.s. interests and reputation around the world? sec. pompeo: you know, it has not come up today except i received a question at a press conference. kevin: and you said you would testify. sec. pompeo: i have said consistently, the -- if the law requires me to testify, i would do so. up -- and almost never comes up in meetings with my counterparts. they are too many important things going on in the world. america is too close a partner to them. they care about so much that we do. they see the noise in washington but it is not something that they would think in the time that we have between us that they would raise. kevin: house democrats are saying rudy giuliani orchestrated a shadow foreign policy. can you assure diplomats serving overseas all around the world in dangerous places that that is not the case? sec. pompeo: the foreign policy we were executing then is the
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same foreign policy we are executing today with respect to ukraine. it is an important country. it sits at this crosswords. president trump has taken actions to counter russia. present oral obama refused to take it. we have -- so they can defend themselves. we have supported this new leader, president zelenskiy, in his efforts to stamp out corruption and to build his democracy. . that. continuing to do our policy with respect to ukraine has been set on the fundamental principles of reducing the for print of corruption and helping the ukrainian people build up a democracy while under threat from the russians. kevin: you have said you look forward to going there, that you have other issues you want to discuss with them. is that still the case? sec. pompeo: yeah, i'm going to get there before too long. i had a trip planned, and then we had an issue arise in the middle east that we had to tend to. while that issue is not behind us, there is still a lot of stuff. kevin: why should americans care
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about what happens in the ukraine? what is the broader theme? who is explaining to the american people why u.s., ukraine policy matters to the average american? sec. pompeo: yeah. the ukraine sits at the edge between democracy and tyranny, in the easternmost parts of europe. it is a nation that gave up their nuclear weapons at the end of the cold war. america made a commitment, they said we would assist them with a number of things that they could still be a secure, sovereign nation. we care about democracy everywhere. they are a huge trading partner for the united states of america. america has a number of interests with respect to ukraine. the level of resources we have committed their reflects that level of interest. david: that was part of kevin cirilli's exclusive interview with secretary of state mike pompeo. kevin joins us from kingston, jamaica. well done, kevin. timely interview. let's go back to where you started about iran and the -- it
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is clear he is steadfast in saying they cannot get nuclear weapons. he says europe is there as well but i do not hear how they will keep them from getting it. kevin: absolutely correct. i was struck by secretary pompeo's continued assertions about the growing threat of has bella in latin america. that is precisely part of the reason he traveled here. and really trying to unify support not just around venezuela, but also. . around broader national security. as it relates to europe, secretary pompeo in the united states also very much trying to firm up strategy with the europeans to get them on the same page with the united states and to get iran to negotiate with the united nations. within the past 24 hours, tehran has said that is something they are not willing to do, especially should europe continue to use the united nations as they continue to work
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with the united nations to have that go on. i asked him about the senate impeachment trial. he says it has not come up. i can tell you the impeachment has been on the front pages of virtually every stop along our way on this five country, five tours. he says it is business as usual. david: thank you so much. kevin cirilli, terrific job. he is in kingston, jamaica. coming up, we are moments away from the start of the opening statements of president trump's impeachment trial. we will bring you some of the opening statements on tv and radio. that's next. this is "balance of power." we are on bloomberg radio. ♪
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>> breaking news at this hour. opening arguments are about to begin in the senate impeachment trial of president donald trump. we will bring you those opening arguments when they get started in moments. first, let's get to capitol hill to get more on what to expect from bloomberg's emily wilkins. we know the president has left davos. we will not anticipate getting any tweets or anything like that during the early stages of the opening arguments. that he has said that he would love to be there. emily: yes. i was just talking in the senate with mark meadows. he is a republican lawmaker on the house side.

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