also drawing a fine line with russia, saying russia probably meddled in the 2016 election. that will be nothing to ease concern of his critics who have pressed him on that. now all eyes are going to be on this attentional meeting with vladimir putin. this will be the first time two world leaders meet since president trump has become president of united states. it comes as the investigation into his administration's connections the rush are very much continuing. the administration tried to put this behind them, but there is no question every second of any interaction he has a vladimir putin will be highly analyzed. the backdrop to all of this is the rising north korea nuclear threat. and clearly while the administration wants to talk trade and bilateral trade agreements with people like cantaloupe angela merkel of germany, north korea definitely on the minds of all the people at the 20. -- g-20. alix: joining us now is the eurasia group rector of global research. great to see you back again. what did you make a president trump's comments concerning russia for urging them to

here is how the russia headlines played out yesterday. stocks dipped and trading value spiked and then it recovered after michael barnier was speaking. it wasn't enough for dan isaacson to raise the flag on his economic outlook. we are becoming more cautious about the possibility of meaningful legislation. these distractions are going to make it difficult to gain consensus. joining us now, neil dwane, global strategist, and josh feynman, deutsche asset chief economist. good to be here. a dimmerarting to see outlook because of this? >> i was always skeptical about the grandiose expectations being bandied about, particularly after the election. having said that, i don't think we should throw in the towel completely. i think there is still a better than even chance we get something back by the end of the year but it is not going to be revolutionary all that much. alix: i'm trying to get a handle on what are the headlines that market participants care about? >> to pick up on where we started, we have felt that the headline about the global sy

russia keeps coming back. get back to the g20, the that het tweeted out thought it was a good ideas to russian onhe cybersecurity. senator lindsey graham had opposition to that. >> it was pretty close. gave a really good speech in poland. ahead disaster meeting with president putin. two hour and 15 minutes of meetings, tillerson and trump are ready to forgive and forget comes to cyberattack on 2016.an election of david: with all congress nobody on russia.e up is this going to get in the things like healthcare? you had a good weekend. there is some precedence for working with top global power such as china and ofering into some type accord agreement of a truce so cyber technology. we've seen this in the past with the united states relationship china. the president in his tweets suggesting a similar path forward. of course, over the weekend, new report from the "new york times" suggesting that donald trump jr. had a previously undisclosed with a kremlin associated lawyer back on paul manafort.th then the campaig

and russia. skip the working session on climate change since they are going to meet 15 minutes into that session. pulled out of the paris climate accord. that's an important point to make. the germans are hosting this g-20. right now, climate is at the top of their agenda along with trading immigration and a couple of other issues donald trump doesn't want to talk about. take a look at the g7 that happened. the biggest thing was the handshake between macron and the president of the united states. why is this going to be different? everyone is interested in the theater. why is this more material in terms of policy? matt: i think it's very interesting in the timing. actions byhad central banks that look almost like they've been talking to each other and coordinating policy. you have the dramatic rise in rates we've seen over the past couple of days. she deputy finance minister met. the sherpas have been meeting as well. the global meetings -- leaders are meeting. it will be interesting to see if th

just look at russia. the road word -- reward for the investor is smaller and the risk has not disappeared. we think the risk backdrop is not as attractive as it had been at the beginning of the year. jonathan: there are several different stories playing out. i just want this up on the bloomberg. the dollar is the base currency. i just brought this up on the bloomberg. in the mix are the european proxies. you seeottom, underperformance from latin america. there are three or four different stories playing out for 2017. out of those stories, what are you more constructive on? >> that is correct. some differentiation is in place. markets are indian probably the most attractive. there have been tax reforms. this goes in the right direction with a strong underlying growth dimension. eastern europe looks very attractive from a currency perspective. these countries are very close to the german market and are important inflationary pressure from germany. the labor market is very tight in the czech republic and pol

he also denies russia finance any of its -- his business activity. legislation has led to eight straight days of antigovernment protests. u.k. is making the case for quick trade deal in the u.s. as soon as brexit is complete. barriers lead to by 2030. $45 billion >> president trump is counting on his treasury department get some of his ambitious goals accomplished. in and talkome about what can get done. firm may have some role to play. welcome back to the program. get to have you here. list fork first on the most of our viewers is tax reform. is it doable this year. is it possible to get tax reform done question mark >> it's possible. it will be difficult. itshouse is going to take resolution up this week. i think they will pass it. reform cannot start until after september, but the preparatory effort is going on right now. house and mr. the .yan and steven mnuchin preparatory work is going on. procedurally, it is reconciliation and then it is tax reform. to get it done, it will be difficult, but not impossible. >> the plan is to have a plan that is

on increasingl sanctions against russia passed by the senate. how might this affect things on capitol hill? >> senate knew unanimously passed a legislation increasing russia's sanctions. house.n limbo in the the white house is trying to tweak it, not necessarily democrats are accusing to get in line with russia, but to tweak provisions that some folks in the energy sector have some issues with here there is intense pressure for the house to get some kind of sanctions will done and chairman royce if someone working very carefully on this. i spoke yesterday with the house freedom caucus about this, a member of the committee working on the sanctions will. listen to what he had to say about the time i for sanctions. >> a frustration is trying to make sure we target those sanctions. and with the overwhelming vote we saw on the senate, you will see an overwhelming vote on the house floor in the coming days. >> a lot of pressure for the house of representatives in the coming days to get something done. david: thank you. politicians from both sides of t

will reduce diplomatic missions and russia by almost two thirds. that is 755 people. that is in response to sanctions imposed i congress. inflation in the euro area is below the centralthat is in ress imposed bank target this month. consumer prices rose 1.3%. the ecb will debate on unwinding the stimulus program. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, this is bloomberg. it's not the inflation data and's to make you run away to the ecb and pull the trigger on rates. 1.3 is different than at 1.7. i think the bottom line is 1.3 is different than zero. that's for you have to unwind qe. to remove the whole program in march toward raising rates, it's not going to happen anytime soon. we have a big week of economic data. tomorrow, we get auto sales. thursdayof england on as a news conference. on friday, the major data point of the week is payroll. that stretches to the ibc. get me set up for friday and the payroll. if it drops, do we have the same old question? where is the wage growth? >> probably. wage grow

it will be russia versus legislative agenda, what is the tension? kevin: the latest report from the new york times suggested emailed that donald trump junior was aware that the meeting he took with a kremlin affiliated lawyer was actually someone who was going to try to help efforts to help the candidate donald aiding campaign in against hillary clinton. donald trump juniors attorney at what the statement that says "in my view, this is much ado about nothing. don jr. had no information on what was to be discussed. further, there were still understanding or commitment that he or anyone else would find information, whatever it turned out to be, would be of interest or would survive due diligence." donald trump junior pressing back against criticism he was working with any type of russian kremlin affiliated attorney to collude with russians. the criticism from the left, as well as concerns within the republican party, growing this morning. alix: we will be watching that. also with us is michael purvis. your base case that the s&p is below what we are s

new york times he would not have appointed sessions if he knew that he would recuse himself from the russia investigation. he called sessions' decision unfair to the president. the president may take another shot at getting a health care bill passed after the present parish republicans to stay in washington until they repeal obamacare. republican senators met with the president. mitch mcconnell still was to hold a vote on a repeal bill next week. senator john mccain has been diagnosed with brain cancer. his office says he and his family are reviewing treatment options. the arizona republican is 80. presidential andidate and spent 5 years as prisoner for after his airplane was shot down. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. a main event for global markets. mario draghi's tone will be closely watched. he will attempt to balance optimism over a desire to move as slowly as possible when removing stimulus. ecb has forecasted to keep rates unchanged amidst an improving backdrop. the bank has been examining o