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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: dot com slash cyber risk fiser agreeing to acquire an

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Speaker 1: Acre Pharmaceuticals and a transaction valued at about five point

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Speaker 1: two billion dollars and a core up fifty four percent

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Speaker 1: in early trading, Ranch Resources at Texas based, a natural

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Speaker 1: gas producer agreeing to buy Memorial Resource Development and a

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Speaker 1: three point three billion dollar all stock deal. And Gannett

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Speaker 1: escalating its hostile takeover for a Tribune, raising its all

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Speaker 1: cash offer for the owner of the Chicago Tribune in

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Speaker 1: Los Angeles times to fifteen dollars a share. Tribune Publishing

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Speaker 1: is up to two percent this morning. Smp emny futures

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Speaker 1: are little changed as our Dowie Mini futures and naz

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Speaker 1: docu mity futures and attend your Treasuries down four thirty seconds,

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Speaker 1: the yield one point seven one percent, and nim X

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Speaker 1: scrude oil up two point one percent or ninety eight

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Speaker 1: says go makes gold up nine ten percent or ten

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Speaker 1: dollars ninety cents. The euro a dollar thirteen twenty two,

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Speaker 1: the yen one oh eight point eight eight. That's a

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Speaker 1: Bloomberg business flash, Tom, and Mike Karen thinks so much.

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Speaker 1: This is interesting right now where we are in trade.

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Speaker 1: I brought this up with Bruce Kasman and Phil earlier

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Speaker 1: earlier this morning. Not joining us somebody that actually has

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Speaker 1: to do this ballet within a presidential campaign. Under Secretary

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Speaker 1: of Commerce for International Trade and Lame ducket International Dynamics,

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Speaker 1: Stephan Seelig, with a terrific experience on Wall Street out

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Speaker 1: of Wesley and Economics a million years ago. Mr. Under Secretary,

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Speaker 1: Good morning, And I guess I would have to say,

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Speaker 1: do you just push TPP aside or do you and

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Speaker 1: the president give it the old College trial is trade

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Speaker 1: deals go down in flames in this election. Good morning, Tom, Uh.

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Speaker 1: Far from pushing it aside. The entire administration is laser

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Speaker 1: focused on getting TPP done. And getting TPP done this year,

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Speaker 1: the costs of delays are staggering to our economy. Well,

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Speaker 1: it's frankly around a job growth um uh and job creation.

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Speaker 1: You know. There to your point, they're a whole host

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Speaker 1: of misconceptions right now around trade, and maybe I can

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Speaker 1: just address a few of them. One of them is

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Speaker 1: that trade is a driver of job losses, and nothing

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Speaker 1: could be further from the truth. You know. The fact

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Speaker 1: is our economy has changed a ton in the twenty century.

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Speaker 1: For example, you know, US farm employment the beginning of

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Speaker 1: this century was it's now down to um And the

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Speaker 1: result of that is that it's technological change that is

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Speaker 1: leading leading leading to job losses and not trade or

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Speaker 1: trading creating. Another is that trade and trade agreements lead

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Speaker 1: to trade deficits. But you know, we have fourteen separate

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Speaker 1: free trade agreements um. And in those with those fourteen

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Speaker 1: free trade agreement partners um, we actually have trade surpluses.

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Speaker 1: And if you take out petroleum and if you look

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Speaker 1: at export growth to those markets, it's been over the

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Speaker 1: course of the past six years versus for the rest

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Speaker 1: of the world. So I think those are just two examples.

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Speaker 1: I might make raise one more, which is that trade

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Speaker 1: drives down wages, and in fact, trade and export intensive

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Speaker 1: jobs pays up to entire wages on average. Secretary Clinton,

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Speaker 1: Mike has to get elected in North Carolina. This is

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Speaker 1: Mr Trump. Well yeah, and what do you say then, too,

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Speaker 1: a Trump supporter who says trade creates jobs? What happened

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Speaker 1: to my job? It's in China? Now? Well, look, I mean,

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Speaker 1: I think it is clear that the benefits of trade

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Speaker 1: are more diffuse, and so when a worker loses his

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Speaker 1: job and plant closes, um, that is a painful reality.

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Speaker 1: And that is why this administration is and will continue

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Speaker 1: to be focused on Trade Adjustment assistance to put in

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Speaker 1: those things in place to help support dislocated, dislocated and

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Speaker 1: displaced workers. We re authorized Trade Adjustment Assistance UM last

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Speaker 1: summer in connection with our Trade Promotion Authority uh t

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Speaker 1: p a UM. It was the first time it was

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Speaker 1: done in six years. UM. And I will tell you historically,

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Speaker 1: since nineteen seventy four, over two million workers have benefited

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Speaker 1: from Trade Adjustment assistance. And for sure there's more that

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Speaker 1: we can and should do. But that doesn't mean we

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Speaker 1: should throw the baby out at the bath water. But

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Speaker 1: does it maybe suggest that people who are are in

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Speaker 1: favor of the t p P and other trade agreements

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Speaker 1: have taken for granted too long the general view that

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Speaker 1: trade is always good for the economy, and uh, some

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Speaker 1: of this has snug up on you. Well you know, look,

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Speaker 1: as as I said, UM it is, it is for

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Speaker 1: sure good for the economy, but you have a situation

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Speaker 1: with trade where those benefits to the economy are diffuse

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Speaker 1: and the costs are concentrated, and as a result of that,

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Speaker 1: we have to do everything we can to address those

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Speaker 1: concentrated costs. I look, Secretary, if you're just joining us

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Speaker 1: down Stephan ceiling with this under Secretary of Commerce for

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Speaker 1: International Trade, we all understand out of World War Two

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Speaker 1: that there would be benefit to trade, and we've been

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Speaker 1: through a cycle of trade improvements. Have we just reached

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Speaker 1: the point where the given diplomatic exercise doesn't come up

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Speaker 1: with enough of a good result because we've come so

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Speaker 1: far over fifty years. Well, um, I don't think that's

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Speaker 1: the case at all, And in fact, that's why we're

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Speaker 1: so focused on t p P, which you've mentioned, which

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Speaker 1: is going to be um uh, such an important market

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Speaker 1: for US businesses going forward, roughly three point two billion

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Speaker 1: middle class UM by the year of global GDP. That

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Speaker 1: didn't exist historically. So the fact is, the fact is

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Speaker 1: is that the United States had a large, um and

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Speaker 1: growing market surrounded by two oceans, and frankly, we didn't

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Speaker 1: need to look expansively as we have to today in

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Speaker 1: order for US business to take advantage of the growth

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Speaker 1: opportunities that exist around the world. We don't have but

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Speaker 1: a minute left here, so let me quickly ask you,

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Speaker 1: because it's another issue that comes up in the campaign,

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Speaker 1: what the administration is doing to push back against unfair

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Speaker 1: trade from China. Well, um, uh, we're doing a ton

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Speaker 1: and you're quite right. There's a big issue with over

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Speaker 1: capacity uh in the world and in a number of industries,

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Speaker 1: including steel and aluminum. I was in Brussels just two

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Speaker 1: or three weeks ago for the O E c D

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Speaker 1: Steel Symposium. You know, as it relates to steel, there

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Speaker 1: is roughly four hundred million metric tons of overcapacity and

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Speaker 1: China alone, to give you a sense of that order

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Speaker 1: of magnitude, that is three times what the United States

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Speaker 1: produces um in any particular given year. As a result

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Speaker 1: of that, we are we are focused on doing everything

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Speaker 1: we can to protect American workers and jobs from fairly

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Speaker 1: imported steel um UH. That is leading to the highest

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Speaker 1: level of anti dumping and counter counter duty um investigations

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Speaker 1: that we have ever had in the United States. We're

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Speaker 1: gonna have to leave it there, Mr Secretary, thank you

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Speaker 1: so much. Seven. Stephan Ceiling is Under Secretary of Commerce

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Speaker 1: for International Trade, fighting the TPP fight. Stay with us.

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