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Speaker 1: Why from our nations this budget thing is going to

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Speaker 1: do nothing space sports. I still think it's interesting President

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Speaker 1: Trump not playing his cards yet headlines Policy and Politics,

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Speaker 1: colliding to sound on with Kevin's Relate the insiders, the influencers,

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Speaker 1: the insiders. I would rather see a congressional solution. It's

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Speaker 1: part of my DNA. The Senate map in looks a

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Speaker 1: lot different than it looked in. You really have a

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Speaker 1: divide within Team Trump. The president has to do exactly

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Speaker 1: what people seven here to do, which is to get

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Speaker 1: it done. He's sound on with kevins Relate on Bloomberg

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Speaker 1: one and m h D two Boltemore, So get this.

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Speaker 1: President Trump says that he's going to meet with Chinese

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Speaker 1: President si Jing Ping. This as the continued rift over

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Speaker 1: tariff continues to escalate countdowns onto the G twenty summit,

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Speaker 1: when President Trump and President shi Jing Ping will meet

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Speaker 1: and come face to face. This is going to be

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Speaker 1: a crucial, crucial, crucial data point in the ongoing US

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Speaker 1: China trade talks. Will bring you the latest on how

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Speaker 1: that is developing. Plus Secretary of State Mike Pompeo, he's

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Speaker 1: over in Russia. He's meeting with Russian officials. What's he

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Speaker 1: telling Vladimir Putin? What's he telling Sergey live Rov. We

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Speaker 1: have an all star panel to break all of this down.

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Speaker 1: Kevin Wahling, Democratic strategist at h G Creative Media. Sarah Kim,

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Speaker 1: Republican strategist, former senior advisor and the Trump Administration, and

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Speaker 1: former Healthcare Council on the House Oversight and Government Reform Committee.

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Speaker 1: Plus we're breaking down the stock market. How the street's

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Speaker 1: reacting to the tariffs. Cameron Crisi is Bloomberg Markets Live blogger.

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Speaker 1: He's going to join us at the top of the show.

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Speaker 1: And Mattie Dupler are in house economists, essentially senior fellow

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Speaker 1: at the National Taxpayers Union and former Coalitions director for

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Speaker 1: the House Republican UH Conference. Wild Day on Wall Street

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Speaker 1: in particular, as President Donald Trump says that he's gonna

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Speaker 1: meet with President shi Jing pinga China at the G twenty.

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Speaker 1: Mark your calendars. It is going to be absolutely remarkable, crucial,

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Speaker 1: crucial meeting June to June in Japan. Joining me on

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Speaker 1: the line a Bloomberg Markets Live blogger Cameron christ Cameron,

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Speaker 1: how did the street react to all of the back

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Speaker 1: and forth over the weekend with President Trump and President

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Speaker 1: she well clearly not very well. Um. The days started

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Speaker 1: with Mr Trump essentially threatening China and warning them not

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Speaker 1: to retaliate on the tariffs that he'd imposed last Friday,

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Speaker 1: and about ninety minutes later, the Chinese announced that they

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Speaker 1: were indeed imposing a fresh set of measures that should

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Speaker 1: take um, they should hit about i June one on

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Speaker 1: about sixty billion dollars worth of US goods. So you know,

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Speaker 1: what do we take from this? Uh, it's an escalation,

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Speaker 1: and escalation from both sides certainly implies that they're relatively

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Speaker 1: little chance of a near term resolution. Cameron christ He

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Speaker 1: is joining us on the telephone line from New York City.

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Speaker 1: He is Bloomberg Markets Live blogger. The SMP five index

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Speaker 1: is biggest one day drop, the biggest one day drop

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Speaker 1: since January three. Was also pretty broad, with more members

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Speaker 1: falling amid the escalating US China trade tensions. But look,

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Speaker 1: I'm an optimist, Cameron. I'm an optimist, okay, because there

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Speaker 1: are some sectors that actually turns out out a good day. Hey,

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Speaker 1: you know, don't you love that whenever there's a bad day,

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Speaker 1: there's like a bright spot. US Utilities tell us about

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Speaker 1: the utilities, Well, they went up. Um. Why the sector, Well,

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Speaker 1: it's a classic safe haven um sector. Uh. In many

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Speaker 1: ways they resemble bonds, and obviously bonds also had a

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Speaker 1: very good day today. On the presumption that this sort

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Speaker 1: of volatility perhaps makes a little more likely that the

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Speaker 1: Federal Reserve will cut rates at some point in the

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Speaker 1: not too distant future. Um. So from that perspective, yes,

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Speaker 1: it's nice that if you were nimble enough, you could

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Speaker 1: have hidden out somewhere and made a bit of money. Obviously,

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Speaker 1: it would be nice to know beforehand and that that's

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Speaker 1: gonna that that's gonna work, rather than just picking it

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Speaker 1: out picking out afterwards. Not that I'm not I'm not

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Speaker 1: having to go by the way, um, but uh, you know,

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Speaker 1: the real risk, I think is that you won't get

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Speaker 1: a final capitulation until people sell everything. Um. And that

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Speaker 1: was what we saw at various points of last year,

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Speaker 1: as you didn't really get a bottom until everything went down,

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Speaker 1: and and if you will, the baby was thrown out

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Speaker 1: with the bath water. So clearly that wasn't the case today. UM. So, well,

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Speaker 1: it is true that if you were perspicacious enough to

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Speaker 1: to get into utilities before the open. You did well. Um,

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Speaker 1: I guess you could argue that there still a shoot

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Speaker 1: to drop in that regard Cameron Christ joining us on

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Speaker 1: the telephone line. He's follows all things markets from Bloomberg Markets. Um,

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Speaker 1: it's been a remarkable day in on Wall Street given

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Speaker 1: the escalating trade tensions between the US UH and China.

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Speaker 1: I interviewed Senator Angus King and Independent from Maine earlier today.

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Speaker 1: He was telling me about how the lobster farmers up

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Speaker 1: in Maine. I mean, they're absolutely livid at the at

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Speaker 1: the prospects of tariffs and how the tariffs have impacted

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Speaker 1: even the lobster market. To get a cup of chowder

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Speaker 1: up there in New England. But Cameron, Uh, what what

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Speaker 1: is this doing to the optimism or the lack about

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Speaker 1: or anything at all from a trader's perspective about forecasting

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Speaker 1: into I don't know, recession or is this just so

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Speaker 1: small and we're talking about such a fraction of a

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Speaker 1: fraction of g d P on the US China trade

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Speaker 1: front that no one's really using the R word UH

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Speaker 1: in terms of how this might forecast him. Well, I mean,

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Speaker 1: obviously it's premature to UH to talk about recession, but

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Speaker 1: I think the lesson that we need to draw from

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Speaker 1: last year is that these things can have an impact. Certainly,

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Speaker 1: as trade pensions were escalating in the fourth quarter of

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Speaker 1: last year, we saw quite a precipitous decline in business confidence,

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Speaker 1: which then fed through into financial markets witness, which then

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Speaker 1: rebounded back into into lower business confidence. And it was

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Speaker 1: really only the beginning of this year when yes, the

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Speaker 1: FED sort of capitulated on tightening cycle, but also there

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Speaker 1: was a rapproche moment between the US and China on

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Speaker 1: the trade front that we saw business confidence stabilized. So

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Speaker 1: one of the key things for anybody playing the markets

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Speaker 1: over the next two to six weeks is going to

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Speaker 1: be to follow the economic numbers very closely, particularly the

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Speaker 1: surveys which tend to capture swings and sentiment before the

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Speaker 1: official activity data. So things like consumer confidence and in

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Speaker 1: particularly business confidence measures are going to be very very

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Speaker 1: important the gage whether this is going to have yet

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Speaker 1: another dilitarious impact on the economy. And just quickly before

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Speaker 1: I let you go, by the way, you're a Duke guy.

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Speaker 1: I don't really you know, I'm not really a Duke

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Speaker 1: basketball fan, but you know, we like, we like Cameron

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Speaker 1: Christ and appreciate him checking in and breaking down the

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Speaker 1: markets for as Bloomberg Markets Live blogger joining us on

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Speaker 1: the line, Cameron Christ, So, a lot of the notes

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Speaker 1: that I read from your Asia group, from Signum, from

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Speaker 1: Goldman uh and JP Morgan and whatnot, I mean, they've

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Speaker 1: really kind of lowered their expectations in the short term

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Speaker 1: of President Trump getting to some type of short term

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Speaker 1: agreement with the Chinese. Where are you in that? How

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Speaker 1: would you price in or factor in your expectations of

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Speaker 1: their being a deal in the short term and all

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Speaker 1: defined short term by the end of August. Well, let

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Speaker 1: me prepace my comments by saying, when I'm matriculated at

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Speaker 1: Duke University, they've never won anything basketball. Um all that,

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Speaker 1: there were zero national championship And I'm still balked about

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Speaker 1: my sixers last night, losing that heartbreaking loss to Toronto.

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Speaker 1: Don't even get me started. Why Canadians are allowed in

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Speaker 1: the NBA? Go ahead? UM? Yeah, So listen, I think

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Speaker 1: it's very, very difficult to handicap with UM much degree

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Speaker 1: of confidence given the show we say, the volatile nature

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Speaker 1: of some of the personalities involved. UM, I think I

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Speaker 1: think that that I and a useful analogy is the

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Speaker 1: is actually the brexit um situation over in Europe, where

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Speaker 1: I think there was a a general sense that UM

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Speaker 1: a deal would would come would come together and get

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Speaker 1: passed simply because it seemed like the right thing to

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Speaker 1: do for everybody. Uh But the reality is that the

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Speaker 1: nuts and bolts of an agreement there were in many

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Speaker 1: ways mutually exclusive UM utilities on either side, and I

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Speaker 1: think that's the case between the United States and China.

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Speaker 1: So we also have to acknowledge the fact that uh

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Speaker 1: Mr Trump tended to look at markets as a sort

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Speaker 1: of a real time barometer of his success or a

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Speaker 1: referendum on on on his policies. So in a sense,

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Speaker 1: you almost need equeen markets to go down more and

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Speaker 1: harder before the White House feels incentivized to make UM

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Speaker 1: to make a concession. So to be honest with you,

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Speaker 1: at this point, I kind of view it as a

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Speaker 1: coin flip, and I think we've now acted today are

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Speaker 1: sort of pricing it as a coin flip. You know,

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Speaker 1: we don't know exactly how hard the market would go

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Speaker 1: down if this thing gets properly ugly, but seems a

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Speaker 1: reasonable proposition. We're now down five percent from the high

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Speaker 1: so it's kind of up alright, Cameron Christ appreciate your

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Speaker 1: time very much. I know you've got to get back

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Speaker 1: to a Bloomberg terminal to watch the remarkable, remarkable day

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Speaker 1: on Wall Street as again, the SMP five hundred dropping

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Speaker 1: the most in four months, the Dow Jones Industrial Average

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Speaker 1: slumping more than six hundred points, and the NASDACS seeing

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Speaker 1: the biggest decline of the year after China. China targeted

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Speaker 1: some of the nation's biggest exporters. We're gonna crunch the

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Speaker 1: numbers even more on some of the more robust stocks,

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Speaker 1: including Boeing and Caterpillar, as well as Apple, all of

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Speaker 1: which were down today. That's Cameron CHRISTI as Bloomberg Markets

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Speaker 1: Live blogger. I'm Kevin Cirelli, Chief Washington correspondent for Bloomberg

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Speaker 1: Television and Bloomberg Radio. Much more on the political fallout

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Speaker 1: on the escalating US China trade tensions, with an all

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Speaker 1: star panel coming up next, and you can download the

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Speaker 1: sound on podcast on Apple iTunes, at Bloomberg dot com,

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Speaker 1: or by downloading the Bloomberg Business app. Check us out

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Speaker 1: on Radio dot com, I Heart Radio and Spotify. I'm

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Speaker 1: Kevin Sireli, hope you had a great Mother's Day. You're

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Speaker 1: listening to Bloomberg one. You're listening to Sound On with

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Speaker 1: Kevin Surreally on Bloomberg one and one m h D

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Speaker 1: two Bolt Themore. Maybe something will happen. We're going to

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Speaker 1: be meeting, as you know, at the G twenty in Japan,

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Speaker 1: and that will be I think probably a very fruitful meeting,

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Speaker 1: first full meeting President Trump describing the showdown that's about

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Speaker 1: to happen on June and June twenty nine and Osaka,

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Speaker 1: Japan at the G twenty summit, the showdown being between

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Speaker 1: President shi Jing Ping of China and President Donald Trump.

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Speaker 1: The trade talks, I don't want to use the word sour,

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Speaker 1: because the President as well as China said that they

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Speaker 1: were productive, but the countdowns on. The President has said

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Speaker 1: China has about one month before the prospect of raising

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Speaker 1: even more tariffs. Wall Street, Wall Street not liking the news.

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Speaker 1: The SMP five hundred dropping the most in four months,

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Speaker 1: the dal Jones Industrial Average slumping more than six hundred points,

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Speaker 1: and the NASDAK composite seeing the guess decline of the year.

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Speaker 1: With me in Studio and All Star Panel to break

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Speaker 1: down the politics, the policy, and the reaction from Wall Street.

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Speaker 1: Maddie Duppler, Senior fellow at the National Taxpayers Union, former

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Speaker 1: Coalitions director to the House Republican Conference, Kevin Walling, Democratic Strategists,

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Speaker 1: Sarah Kim, Republican Strategists, Maddie, I want to get to

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Speaker 1: see you. Earlier, we heard from Cameron christ he has

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Speaker 1: Bloomberg Markets Live blogger. He was on the terminal all

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Speaker 1: day and he's essentially predicting that the stock market could

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Speaker 1: go down about ten percent when all of this gets

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Speaker 1: said and done. What do you make of it? Yeah,

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Speaker 1: so you touched on this with Cameron, but I want

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Speaker 1: to circle back to it. The markets had priced in

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Speaker 1: a deal with China, not just because it was a

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Speaker 1: deal with China. They are constantly seeking certainty, particularly in

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Speaker 1: this last year when the weight of tariffs and the

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Speaker 1: threat of tariffs has hung heavy over a lot of

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Speaker 1: businesses in the United States. So right now, you heard

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Speaker 1: from Goldman earlier in the week that in this escalation

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Speaker 1: of tariffs could potentially shave off point four percent of GDP.

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Speaker 1: Right now, the President clearly feels like he is in

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Speaker 1: a strong negotiating position because the United States economy is

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Speaker 1: so strong. But this is where all of that red

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Speaker 1: is coming from the market today. It is because investors

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Speaker 1: are looking at a breakdown in China US China negotiations

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Speaker 1: and saying what does this do for global growth? That

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Speaker 1: is not just US and China that will be impacted

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Speaker 1: by a long drawn out trade negotiation and trade fight.

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Speaker 1: It is the rest of the world that is watching

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Speaker 1: to see if this can get resolved quickly, because otherwise

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Speaker 1: those strong growth numbers coming in the United States, even

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Speaker 1: out of China and the Eurozone could falter as a result. Alright, alright,

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Speaker 1: So so yesterday you got Cudlow, Larry Cudlow, the President's

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Speaker 1: chief economic advisor. He's on Fox News Sunday with Chris Wallace.

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Speaker 1: And this is a remarkable interview for many different reasons,

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Speaker 1: because Chris was pushing Cudlow on the notion of just

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Speaker 1: how much of an economic impact this is going to have.

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Speaker 1: Folks all across the country are beginning then to see

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Speaker 1: what the business community has seen for the past several

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Speaker 1: months as these tariffs have gone into effect. Now it's

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Speaker 1: trickling down two consumers. I don't like to use the

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Speaker 1: word trickling down by the way. I think it's a

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Speaker 1: loaded word, especially in this climate. So now I will

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Speaker 1: just say consumers are beginning to see the impacts of

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Speaker 1: this in the short term. Take a listen to what

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Speaker 1: Larry Cubler said on Fox News Sunday. Here is, in

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Speaker 1: my judgment, the economic consequences are so small, but the

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Speaker 1: possible improvement in trade and exports and open markets for

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Speaker 1: the United States, this is worthwhile doing. Alright, Sarah Kim

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Speaker 1: Republican strategists, you worked for the administration. I gotta be honest.

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Speaker 1: I've interviewed Larry several several times. But to say the

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Speaker 1: economic consequences are so small, so folks, I don't know.

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Speaker 1: I mean, I mean, when you see the price of

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Speaker 1: clothes going up, when you see various UH purchases that

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Speaker 1: that Americans have to make, to say that there's small all,

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Speaker 1: I I don't know if maybe he didn't mean to

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Speaker 1: say that. No. I think there's a larger economic picture

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Speaker 1: that's not being discussed today, and that specifically is that

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Speaker 1: when the second tranche of went into effect, unemployment was

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Speaker 1: at the lowest that it has been in fifty years,

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Speaker 1: at three point nine percent, and today's market ramifications I

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Speaker 1: wish I were rich so I could buy the stocks

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Speaker 1: that these short sighted investors are dumping. Because when you

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Speaker 1: look at what President Trump has done for the economy

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Speaker 1: since his taxes has passed in two thousand seventeen, I

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Speaker 1: literally went back day by day every month since December

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Speaker 1: of twenty seventeen, and what I found was that the

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Speaker 1: Dow was up on average four point seven seven percent,

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Speaker 1: the SMP was up an average of seven point four

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Speaker 1: three percent, and the NASDA composite was up an average

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Speaker 1: of fourteen point four three percent. So the market is

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Speaker 1: not doing badly. It's just short sighted. People don't understand

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Speaker 1: that the United States is in a position of strength

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Speaker 1: when it comes to China. You're saying, hey, everybody, take

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Speaker 1: a deep breath. That's right. It's a marathon, not a sprint,

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Speaker 1: so you got to see the forest from the trees. Breathe.

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Speaker 1: Keep it simple, that's what you're saying, all right, Kevin Walling.

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Speaker 1: I take it as a Democratic strategist here saying, Sarah,

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Speaker 1: I totally disagree. Yeah, I mean, the marathon argument ends

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Speaker 1: in a year and a half come election day, right,

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Speaker 1: So I'm not thinking about the folks that are able

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Speaker 1: to buy stocks. I'm thinking about the dairy farmers in Wisconsin,

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Speaker 1: the manufacturers in Ohio and Pennsylvania and Michigan, all states

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Speaker 1: that went for President Trump that are actually feeling the

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Speaker 1: heat right now. And the fact that Larry Cudlow had

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Speaker 1: to admit on Chris Wallace's program just on Sunday, just yesterday,

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Speaker 1: that the trade war has both hurt job growth in

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Speaker 1: this country and hurt our gross domestic product to the

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Speaker 1: tune of at least forty billion dollars was extraordinary. And

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Speaker 1: you're seeing the President react to that in real time

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Speaker 1: on Twitter, actually calibrating now the way that he talks

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Speaker 1: about terrifs. That's the first time I've seen an AID

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Speaker 1: contract the president and the president respond by contradicting, not

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Speaker 1: contradicting the aid. You know how many times he tweeted

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Speaker 1: about trade in the past twenty four hours? Does anyone know?

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Speaker 1: I thought, I don't know. You were looking right at me?

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Speaker 1: Are you including the retweets for the record for the

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Speaker 1: but the record it was about it was about thirty

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Speaker 1: tweets alright, coming up. I do want to know if

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Speaker 1: you're in your car and your way, I'm from work

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Speaker 1: and you're trying to figure out what does this mean

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Speaker 1: for me? What does it mean for my retirement savings accounts,

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Speaker 1: for example, and the investments that are there. Boeing and

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Speaker 1: Caterpillar fell nearly five percent today, Apple Inc. Lost five

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Speaker 1: point eight percent, and uh the new penalties also taking

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Speaker 1: him an American farmers, driving down soybean and cotton prices.

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Speaker 1: The dollar rallied, and the ten year treasury yield fell

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Speaker 1: to the lowest level since late March. Coming up much more,

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Speaker 1: but the All Star Panel plus we talk about how

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Speaker 1: the politics of this are beginning to reverberate into the

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Speaker 1: halls of Congress. I'm Kevin CURRELLI, Chief Washington correspondent for

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Speaker 1: Bloomberg Television and Boomberg Radio. You're listening to Bloomberg one.

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Speaker 1: This is Sound On with Kevins really on Bloomberg and

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Speaker 1: one oh five point seven of m h D two Baltimore.

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Speaker 1: We don't have to pay any tariffs. If you're a

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Speaker 1: manufacturer in this country, you pay nothing. Open your division

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Speaker 1: or open up your product. Have it made in this

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Speaker 1: country as opposed to made in China. That was President

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Speaker 1: Trump speaking earlier from the Oval Office on Monday, with

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Speaker 1: some advice to business owners. This says the business community

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Speaker 1: is increasingly putting pressure on the White House, on members

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Speaker 1: of Congress to end those cariffs. The ECO data is

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Speaker 1: on the president side, but not when it comes to tariffs.

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Speaker 1: Wall Street dropping the SPI rather dropping the most in

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Speaker 1: four months, the DW Jones Industrial Average slumping more than

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Speaker 1: six hundred points today, and the NASDAC composite seeing the

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Speaker 1: biggest decline of the year. China fought back. China fought back.

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Speaker 1: They're targeting some of the nation's biggest exporters. Maddie Doppler

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Speaker 1: is a Senior fellow at the National Taxpayers Union, former

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Speaker 1: Coalitions director for the House Republican Conference. Kevin Walling, Democratic

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Speaker 1: strategist at HT Creative Media. They make attack ads. Sarah

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Speaker 1: Kim is a Republican strategist. She used to be a

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Speaker 1: senior advisor in the Trump administration. All right, Keth, you know,

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Speaker 1: we talked about the streets reaction. We talked about how

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Speaker 1: a lot of the stocks that are down today, uh,

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Speaker 1: you know, might impact folks retirements savings in the short terms.

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Speaker 1: Sarah Kim are Republican strategists. She's saying, hey, take a

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Speaker 1: deep breath, you know, when they get a deal, she's

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Speaker 1: predicting a rebound. But from your perspective, from your vantage point,

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Speaker 1: in terms of the political ramifications of this, there really

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Speaker 1: is no other way to say it. But President Trump

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Speaker 1: is completely remade the Republican party on the issue with trade.

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Speaker 1: Where did the Democrats go from here? Yeah? I mean,

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Speaker 1: I think a president's job, whether it be a Democratic Republican,

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Speaker 1: is to do no harm when it comes to national security,

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Speaker 1: economic security, what have you. And what this president has

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Speaker 1: done in the two years that he's taken off is

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Speaker 1: taken on these fights that are that are now hurting UH,

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Speaker 1: middle class voters, lower class voters, farmers in the industrial Midwest. Uh,

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Speaker 1: that we're seeing these now tangible efforts UH having an

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Speaker 1: effect on these folks livelihoods that are separate from Washington,

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Speaker 1: d c. That are separate from Wall Street, that are

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Speaker 1: really feeling this pain. And I think that is really

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Speaker 1: going to come to haunt him over these next couple

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Speaker 1: of months and into next year as we gear up

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Speaker 1: for this election. I mean, there's a presupposition on Kevin's

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Speaker 1: part about what it actually means to Oh, that would

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Speaker 1: be Mr Walling and you know, the real, the real

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Speaker 1: paucity of the Democratic Party right now when it comes

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Speaker 1: to trade, and specifically as it relates to China. I mean,

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Speaker 1: I've been studying the issue of a for a very

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Speaker 1: long time, and right now China is in the midst

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Speaker 1: of a strong economic downturn. Over the last thirty years,

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Speaker 1: they've been growing at six point eight percent and they

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Speaker 1: are diminishing it. And I know you mrss really have

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Speaker 1: been talking about their one Road policy. They have tied

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Speaker 1: up seven trillion dollars worth of debt commitments. China is

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Speaker 1: struggling and all they can do to the United States

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Speaker 1: right now is impost tariffs on a hundred and ten

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Speaker 1: billion dollars. We have three tranches of a trillion dollars

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Speaker 1: with the products that we can go after China. What

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Speaker 1: we are doing now here in the United States is

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Speaker 1: negotiating at a position of strength. Here is what President

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Speaker 1: Trump has done to Kevin's point earlier, he has changed

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Speaker 1: the orthodoxy on trade and the Republican Party. But what

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Speaker 1: that has done is is created a vacuum where Democrats

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Speaker 1: no longer have to have a position on trade. Right

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Speaker 1: I mean, we're going into us m c A right now.

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Speaker 1: Democrats are have not established a position on the new

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Speaker 1: naptal negotiations, and we're starting to see this a little

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Speaker 1: bit in the presidential but even you know, I think

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Speaker 1: Kimala Harris was on I think Tapper's show earlier this

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Speaker 1: week and she's asked about would you have agreed to

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Speaker 1: the first NAPTA. We need to hear from Democrats now

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Speaker 1: about what their position is on trade if it's not

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Speaker 1: what the president is doing. Sarah Kim is making the

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Speaker 1: point that the United States economy is strong, and President

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Speaker 1: Trump is making this move because he feels it as

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Speaker 1: the right policy at the right time. Democrats have the

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Speaker 1: challenge of responding to that by saying what they would

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Speaker 1: do differently. So this is what I don't understand. Kevin Walling,

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Speaker 1: Democratic strategist to Maddie Doubler's point, which is, you've got

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Speaker 1: the Senate Minority Leader, Chuck Schumer, Democrat from New York.

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Speaker 1: He's saying stay. She tweeted it out the other day.

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Speaker 1: I don't know if you guys, did you see this

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Speaker 1: Senate Minority Leader Chuck Schumer, Democrat from New York. He

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Speaker 1: tweets this out. He says, President Trump stays strong on China.

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Speaker 1: We are with you on China. I almost dropped the

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Speaker 1: phone as I'm strolling through the st What does he

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Speaker 1: mean by that? Is it on the issues of an

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Speaker 1: all actual and intellectual property? Is it on the issue

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Speaker 1: of cyber security where there is and there is nonpart

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Speaker 1: is in consensus on that front. Sure, looking at this

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Speaker 1: through the lens cavo, and I gotta say, this looks

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Speaker 1: like there's a divide, and not just the Republican Party

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Speaker 1: on trade, Democrats as well. You've got the intellectual property issue,

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Speaker 1: We've got the currency manipulation issue. Uh. And I think

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Speaker 1: you know you're you're you know Chuck schum who represents

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Speaker 1: New York right in Wall Street, Right, So he wants

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Speaker 1: a strong president coming out of the gate on these issues.

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Speaker 1: And where we can meet the president halfway on this,

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Speaker 1: we will. But again, this president continually misstates economic indicators. Right.

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Speaker 1: The tweets are not just full of grammatical errors. I

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Speaker 1: don't think, coming into this weekend with Larry Cutler that

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Speaker 1: he actually understands tariff policy right when his own aid

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Speaker 1: is contradicting him on this issue. The President does not

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Speaker 1: have a fundamental understanding of currency policy in this country

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Speaker 1: or tariff policy, and we're seeing that. Come to fru wish. Alright,

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Speaker 1: sarahs we got coming up. We're gonna talk more. I

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Speaker 1: see Serry like grabbing the microphone, but no, I'm just

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Speaker 1: trying not to laugh because the Democratic Party supports a

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Speaker 1: Chair of judiciary. Things an island can tip over. Alright, Alright,

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Speaker 1: let's let's just leave it there. Coming up much more

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Speaker 1: on trade policy. Plus, you gotta hear this interview. I

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Speaker 1: did it with Senator Angus King. He's an independent from Maine.

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Speaker 1: He's also a member of Senator and Sell. He's talking

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Speaker 1: to us about how trade is impacting his backyard lobsters lobsters.

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Speaker 1: I'm telling you it's impacting everything. Panel stays. I'm Kevin Surreally,

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Speaker 1: Chief Washington correspondent for Bloomberg Television and Bloomberg Radio. Download

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Speaker 1: the Sound On podcast on Apple iTunes, at Bloomberg dot com,

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Speaker 1: or by downloading the Bloomberg Business app. You can also

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Speaker 1: find us on Radio dot com, I Heart Radio, and Spotify.

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Speaker 1: Happy belated Mother's Day. You're listening to Bloomberg. This is

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Speaker 1: Sound On with Kevin's on Bloomberg one and one oh

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00:24:58,520 --> 00:25:02,000
Speaker 1: five point seven f m HD to Baltimore. We're gonna

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00:25:02,040 --> 00:25:06,359
Speaker 1: take the highest year, the biggest purchase that China has

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Speaker 1: ever made with our farmers, which is about fifteen billion dollars,

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Speaker 1: and do something reciprocal to our farmers so our farmers

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Speaker 1: can do well. That was President Trump speaking earlier today

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Speaker 1: about the impact and quite frankly, the anxiety that farmers

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00:25:23,000 --> 00:25:25,919
Speaker 1: are having the agricultural sector is having as a result

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Speaker 1: of the Chinese responding to the back and forth with

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Speaker 1: the US by targeting essentially farmers. Now, remember it was

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00:25:33,640 --> 00:25:37,240
Speaker 1: just last summer, a couple of months ago, more last year,

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00:25:37,640 --> 00:25:43,360
Speaker 1: when the administration gave a package to farmers following the

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Speaker 1: targeted tariffs that they had received from China. So this

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00:25:47,200 --> 00:25:49,640
Speaker 1: would be more. We previewed that last week with Jason Miller,

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Speaker 1: by the way, and that is in line with a

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Speaker 1: lot of the reporting that we're hearing, which is that

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Speaker 1: the farmers might receive some type of assistance UH if

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Speaker 1: they continue to be acted by China. Kevin Wahling is

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Speaker 1: a Democratic strategist. He's here with us for the hour.

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00:26:05,640 --> 00:26:08,240
Speaker 1: Sarah Kim is a Republican strategist, former senior advisor of

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00:26:08,280 --> 00:26:12,359
Speaker 1: the Trump administration. And Maddie Duppler is a senior fellow

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00:26:12,400 --> 00:26:16,160
Speaker 1: at the National Taxpayers and a Union and former Coalitions

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00:26:16,200 --> 00:26:20,879
Speaker 1: director for the House Republican Conference, and Sarah I was

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Speaker 1: really struck by this notion of the farmers getting more assistance.

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Speaker 1: I'm not sure they want more assistance. I think they

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Speaker 1: want more certainty. I think we all want certainty. But

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Speaker 1: at the end of the day, if the main complaint

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Speaker 1: is they are not able to sell certain products, then

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Speaker 1: the United States government has consistently, i think since prior

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Speaker 1: to the Civil War, bought back products from farmers and

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Speaker 1: then resold them internally or repackaged them and sold them

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Speaker 1: to other countries. Maddie and Sarah, you mentioned earlier that

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Speaker 1: the United States is in a position of strength because

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Speaker 1: we have more things that we can put tariffs on

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Speaker 1: when it comes to China, because we certainly don't export

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Speaker 1: as many things to them if they export to us.

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Speaker 1: This is another example of why farmers want certainty. It's

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Speaker 1: because they want access to those markets. China is growing

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Speaker 1: at an incredible rate population wise, and one of their

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00:27:12,520 --> 00:27:16,159
Speaker 1: main needs our energy and agg That is why the

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00:27:16,320 --> 00:27:18,240
Speaker 1: United States businesses want to be there, But that's why

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00:27:18,280 --> 00:27:20,879
Speaker 1: farmers want to be there. So simply putting a band

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Speaker 1: aid on on economic policy that diminishes the opportunity for

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Speaker 1: selling goods for United States producers is a short term

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Speaker 1: fix for a long term problem. Get this. Just the

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Speaker 1: other week, I was down the wharf, actually bumped into

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Speaker 1: Kevin Walling and Sarah Kim down there, and you know,

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Speaker 1: you know that market down by the wharf. You see

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Speaker 1: it's like a fisherman's market, almost the fish market. The

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Speaker 1: fish market. I think it might Fidelco. So I was like, okay,

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Speaker 1: And by the way, speaking of fish, Bloomberg has a lot.

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Speaker 1: Every office visit of Bloomberg's are there are fish and

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Speaker 1: they are exquisite. But so I'm down the fish market.

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Speaker 1: I didn't know. I just called it the wharf. I

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00:27:59,640 --> 00:28:01,879
Speaker 1: didn't know had like a name. And you can get

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00:28:01,920 --> 00:28:04,520
Speaker 1: really anything down there, And I'm like, wow, these lobster

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Speaker 1: prices kind of going up a little bit, kind of

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Speaker 1: going up a little bit. And the nerd in me

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00:28:08,600 --> 00:28:12,239
Speaker 1: is like US China trade policy. So earlier today I

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Speaker 1: interviewed from Bloomberg Television Senator Angus King. He's an independent

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Speaker 1: representing the Great State of Maine. They know a thing

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Speaker 1: or two about lobsters. And we were talking about cyber security,

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Speaker 1: which is a non part is an issue on these

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Speaker 1: US China trade talks, and the Democrats independence they want

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00:28:28,720 --> 00:28:32,879
Speaker 1: to see they agree with with the Republicans on this.

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Speaker 1: They want to be tough on China as well as

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Speaker 1: other nations on the issue of cyber and to protect

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Speaker 1: US businesses as well. But I said, Senator, how is

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Speaker 1: this US China trade spat feud war impacting folks back

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Speaker 1: in your state? Taking the Take a listen to what

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00:28:50,760 --> 00:28:55,120
Speaker 1: he told me. The retaliation is affecting all kinds of sectors.

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Speaker 1: I'll give you one example. Lobsters from Maine. Exporting lobsters

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Speaker 1: from Maine to China, which is a major one of

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Speaker 1: our markets we've worked for years to develop, is now

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Speaker 1: virtually dead because of the retaliatory tariffs of the Chinese. Wow,

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00:29:08,960 --> 00:29:13,200
Speaker 1: virtually dead, Kevin, there's lobster prices. Yeah. I wonder how

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Speaker 1: that's going to play well with Susan Collins's re election

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00:29:15,560 --> 00:29:18,240
Speaker 1: in two years representing Maine her you know her colleague

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Speaker 1: of course Center King's great streakout, say, I mean that

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00:29:21,600 --> 00:29:23,120
Speaker 1: is a that is a great point. I mean, seriously,

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00:29:23,160 --> 00:29:25,840
Speaker 1: it puts a Republican on back footing on a tough

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Speaker 1: re election fight. I mean, I'm not so concerned. China

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00:29:28,640 --> 00:29:31,880
Speaker 1: has one point three eight billion people that they need

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Speaker 1: to feed. The last major famine over the course of

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00:29:35,120 --> 00:29:38,400
Speaker 1: fifty years was in China where forty million people died.

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Speaker 1: They're gonna need our food. They're gonna need our food,

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00:29:40,920 --> 00:29:43,400
Speaker 1: but they're finding it from other places as well. And

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Speaker 1: that I mean, but that is now the stated goal

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00:29:46,160 --> 00:29:48,280
Speaker 1: of the trade war. The President said it himself today.

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00:29:48,320 --> 00:29:50,520
Speaker 1: He said, if you are a manufacturer in this country

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00:29:50,520 --> 00:29:52,920
Speaker 1: and you're buying something from China, you should be buying

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00:29:52,920 --> 00:29:55,000
Speaker 1: it from a US manufacturer, or you should be buying

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00:29:55,000 --> 00:29:56,800
Speaker 1: it from somewhere else in the world that doesn't have

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00:29:56,840 --> 00:29:58,720
Speaker 1: tariffs on it. This is the stated goal. He wants

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00:29:58,720 --> 00:30:02,880
Speaker 1: to disrupt those starts supply chains, both the manufacturing and agriculture.

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Speaker 1: But Kevin, the political impact back here is bad for

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00:30:06,840 --> 00:30:09,800
Speaker 1: both Republicans but also Democrats because they need to articulate

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00:30:10,040 --> 00:30:13,280
Speaker 1: how they would do things differently. I agree with you, Maddie.

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Speaker 1: We we need to point out a vision right to

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Speaker 1: win the future right. Our candidates can't just be anti

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00:30:19,040 --> 00:30:21,400
Speaker 1: Trump and into these policies. We need to come forward

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Speaker 1: with an economic plan that makes sense for these folks

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00:30:23,800 --> 00:30:26,640
Speaker 1: that feel like they're being left behind. Right but right now,

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00:30:26,680 --> 00:30:32,040
Speaker 1: the president is our chief economic and international chief. Right

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00:30:32,760 --> 00:30:35,640
Speaker 1: there's a Republican run Senate that would have to pass

534
00:30:35,720 --> 00:30:38,200
Speaker 1: any new treaty, whether it be a bilateral agreement or

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00:30:38,280 --> 00:30:41,240
Speaker 1: something like the situation going on with Canada in Mexico

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00:30:41,280 --> 00:30:44,640
Speaker 1: where we still don't have resolution. So right now, uh,

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00:30:44,720 --> 00:30:47,080
Speaker 1: they are in the driver's seat, and we do have

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Speaker 1: to provide a vision and we do have to stand

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00:30:48,960 --> 00:30:50,760
Speaker 1: up for those folks that are being left behind. But

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Speaker 1: right now, the Republicans were re elected to the Senate.

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Speaker 1: They run that that one house of government and the

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Speaker 1: presidents is leading economic policy on the on the national internet,

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Speaker 1: national stage. But here's where this I think is going

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00:31:02,080 --> 00:31:04,280
Speaker 1: to come to a head. The White House has said

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00:31:04,360 --> 00:31:06,680
Speaker 1: routinely that U S M c A. They are taking

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00:31:06,720 --> 00:31:09,240
Speaker 1: their cues from Nancy Pelosi and whether or not House

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00:31:09,240 --> 00:31:11,400
Speaker 1: Democrats can come up with a way to move forward

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00:31:11,440 --> 00:31:14,680
Speaker 1: there that is an opportunity and a need for Democrats

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00:31:14,680 --> 00:31:18,600
Speaker 1: to articulate a trade vision which may come in steep

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00:31:18,600 --> 00:31:21,520
Speaker 1: contrasts with what's happening in US, China, US, Europe and

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00:31:21,600 --> 00:31:22,920
Speaker 1: what the administration is trying to do with some of

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00:31:22,960 --> 00:31:25,200
Speaker 1: those relationships. I think that will be very interesting to watch.

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00:31:25,200 --> 00:31:26,840
Speaker 1: I could talk trade all day, but I do want

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00:31:26,840 --> 00:31:29,600
Speaker 1: to just touch on some other headlines quickly, and I'm

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00:31:29,600 --> 00:31:32,160
Speaker 1: gonna go around the panel, and we gotta keep it

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00:31:32,280 --> 00:31:34,960
Speaker 1: very tight. Okay, like twenty second teach because we're running

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Speaker 1: out of time. Uh. Bernie Sanders keV. Did you see this?

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Speaker 1: He's aligning with Alexandria Acastio Cortez, the freshman on the

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00:31:45,080 --> 00:31:47,520
Speaker 1: issue of climate change. So he's really trying to inherit

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00:31:47,560 --> 00:31:50,240
Speaker 1: the issue of climate change as Joe Biden surging in

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00:31:50,240 --> 00:31:52,920
Speaker 1: the pulse. Good move, smart move for for Sanders. Yeah,

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00:31:52,960 --> 00:31:54,880
Speaker 1: I think it's a smart move. But you you've seen

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00:31:55,040 --> 00:31:59,360
Speaker 1: in polling among Democratic likely primary voters that actually climate

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00:31:59,400 --> 00:32:02,120
Speaker 1: change in the armament Art one and two with healthcare

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00:32:02,600 --> 00:32:04,920
Speaker 1: in a primary. So I think that's the sound possle.

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00:32:04,960 --> 00:32:07,160
Speaker 1: You see this success that j Ansley is having out

567
00:32:07,160 --> 00:32:10,040
Speaker 1: of the gate former governor Washington or current governor of Washington.

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00:32:10,080 --> 00:32:12,560
Speaker 1: That's made that the central piece of his campaign, all right,

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Speaker 1: Sarah Kim. Meanwhile, on the foreign policy front, President Trump

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00:32:17,120 --> 00:32:21,840
Speaker 1: also said today at the White House that Uh. He's

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00:32:21,880 --> 00:32:26,160
Speaker 1: warning Iran against the military uh provocation and so that

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00:32:26,200 --> 00:32:29,760
Speaker 1: the country will quote unquote suffer greatly if any hostilities

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00:32:29,800 --> 00:32:32,440
Speaker 1: break out with the US. Is that smart heading into

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00:32:32,440 --> 00:32:35,120
Speaker 1: a re election? Is there really an appetite for for

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00:32:35,400 --> 00:32:39,080
Speaker 1: a US conflict with Iran? It's a difference between conflict

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00:32:39,080 --> 00:32:42,880
Speaker 1: and again the theme of strength. President Trump is laying

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00:32:42,880 --> 00:32:45,479
Speaker 1: down a red line, and unlike previous presidents, he's going

578
00:32:45,520 --> 00:32:47,600
Speaker 1: to implement it. All right, And what's the biggest thing

579
00:32:47,640 --> 00:32:50,600
Speaker 1: on your radar ship, President Trump? Mattie Butler shop. President

580
00:32:50,640 --> 00:32:53,320
Speaker 1: Trump with President Shuju Ping at the G twenty. If

581
00:32:53,320 --> 00:32:55,600
Speaker 1: there's not going to be a deal, I think President

582
00:32:55,640 --> 00:32:58,320
Speaker 1: Trump will meet with President g because that will give

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00:32:58,320 --> 00:33:00,600
Speaker 1: the markets a lot of certainty arlest of whether or

584
00:33:00,640 --> 00:33:03,640
Speaker 1: not negotiations have rendered any sort of deal in the

585
00:33:03,720 --> 00:33:05,840
Speaker 1: near term. That will certainly be a boost. And we

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00:33:05,880 --> 00:33:08,040
Speaker 1: know that the President likes to watch the markets. You know.

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00:33:08,080 --> 00:33:10,760
Speaker 1: That was good. That was a good talk. Everybody, you

588
00:33:10,760 --> 00:33:12,640
Speaker 1: know made it better if we were down the wharf,

589
00:33:12,880 --> 00:33:15,280
Speaker 1: if we were down the wharf at the fish market

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00:33:15,840 --> 00:33:18,480
Speaker 1: having some lobster, you know, and it was kind of

591
00:33:18,520 --> 00:33:22,040
Speaker 1: cold today. So I feel like even some lobster chowder

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00:33:22,440 --> 00:33:25,640
Speaker 1: would have been good. My thanks to Mannie Duppler, senior

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00:33:25,680 --> 00:33:28,960
Speaker 1: Fellow at the National Taxpayers Union, as well as former

594
00:33:29,040 --> 00:33:32,720
Speaker 1: Coalitions director for the House Republican Conference, Kevin Walling, a

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00:33:32,760 --> 00:33:37,320
Speaker 1: Democratic strategist at h g HD Creative Media. Sarai Kim,

596
00:33:37,360 --> 00:33:41,560
Speaker 1: Republican strategist and former senior advisor and the Trump Administration.

597
00:33:41,680 --> 00:33:45,000
Speaker 1: She's also the former healthcare counsel on the House Oversite

598
00:33:45,000 --> 00:33:48,880
Speaker 1: and Government Reform Committee. Truly Three Sound on All Stars.

599
00:33:48,920 --> 00:33:52,360
Speaker 1: You can download the Sound On podcast on Apple iTunes,

600
00:33:52,640 --> 00:33:55,880
Speaker 1: at Bloomberg dot com, or by downloading the Bloomberg Business app.

601
00:33:55,920 --> 00:33:58,560
Speaker 1: You can also find us on Radio dot com, I

602
00:33:58,680 --> 00:34:01,800
Speaker 1: Heart Radio and Spot of Fine. I'm Kevin SURRELLI you're

603
00:34:01,840 --> 00:34:06,320
Speaker 1: listening to Bloomberg one h