Speaker 1: Global business news twenty four hours a day at Bloomberg
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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
Speaker 1: I'm Katherine Cowdery. Wall Street is pulling back from all
Speaker 1: time highs on all three of the main benchmarks. Black
Speaker 1: luster data is offering little incentive for investors to push
Speaker 1: equities higher. Our report today showed sales at US retailers
Speaker 1: were little changed in July as Americans flocked to auto
Speaker 1: dealers at the expense of other merchants. Another report showed
Speaker 1: wholesale prices unexpectedly fell in July by the most and
Speaker 1: almost a year, a sign that inflation is likely to
Speaker 1: stay muted, which, like the markets, every fifteen minutes throughout
Speaker 1: the trading day down. Industrial leverage is down forty three
Speaker 1: points a quarter percent, trading at eighteen thousand, five hundred
Speaker 1: sixty nine, SMP five hundred, down three points an eighth
Speaker 1: of a percent at two. The NASDAC is starting to
Speaker 1: bounce between games and losses, currently unchanged at fifty two eight.
Speaker 1: And that's a Bloomberg business flash. You're with Kathleen on
Speaker 1: Bluebird Radio. Matt Miller here filling in for Kathleen Hayes
Speaker 1: with Pim Fox on taking stock. We are gonna dive
Speaker 1: into the world of politics via taxes right now. He
Speaker 1: brought in Mike Nitza's executive editor for Bloomberg Politics and
Speaker 1: the Clintons. Mike put out their tax returns for two
Speaker 1: thousand fifteen today. We know we've seen the Clinton's tax
Speaker 1: returns since the seventies or back to the seventies, but
Speaker 1: today we learned they made another eleven million dollars, paid
Speaker 1: thirty and gave away about ten percent to charity. That's yeah,
Speaker 1: that's true. They finally checked this box. It's a traditional
Speaker 1: one for presidential candidates to check. And uh yeah. It
Speaker 1: hasn't created uh that much talk today because it was
Speaker 1: so so well, not not so much talk about the Clintons,
Speaker 1: but it kind of points to Donald Trump because makes
Speaker 1: you wonder how much money did Donald Trump make? I mean,
Speaker 1: the Clintons have made a hundred fifty million since two
Speaker 1: thousand seven. He's he done better? How much does he
Speaker 1: pay in taxes? They've paid about a third of all
Speaker 1: that money to taxes. Has he paid that much? Um?
Speaker 1: They give away almost ten percent of their income. Does
Speaker 1: he do that? Yeah, it definitely is. There's a there's
Speaker 1: a very political um and to this release of the
Speaker 1: taxes that Trump has said again and again that he
Speaker 1: can't release his taxes because he's under an i R
Speaker 1: S audit um. It's one of the most disciplined repeated
Speaker 1: messages from the campaign. UH. Paul Mana for his campaign chief,
Speaker 1: has said. UH has said that the only people that
Speaker 1: want to see the taxes are Trump's enemies, so they
Speaker 1: don't really see upsides or releasing them. And UH, it's
Speaker 1: and they've set no deadline for when they could do
Speaker 1: it before the election. Have you guys at Bloomberg Politics,
Speaker 1: have you talked to anybody at the I R S
Speaker 1: and asked them if there are rules prohibiting releasing your
Speaker 1: tax returns if you're under audit there it's been reported
Speaker 1: that there are no rules thereis has said said that
Speaker 1: you can release your taxes well and drawed it. It's
Speaker 1: just something that Trump has chosen not to do. But
Speaker 1: can he release his tax returns from previous years? And
Speaker 1: that too, H's it's totally within his control to release
Speaker 1: his taxes for previous years and also taxes. UH and
Speaker 1: this most current one. Is it a possibility that Donald
Speaker 1: Trump pays no tax? Well, the New York Times ran
Speaker 1: a very interesting story today interviewing various tax experts saying
Speaker 1: that that that is true, and that has been true
Speaker 1: in the past. Uh in in some some years ago,
Speaker 1: he paid zero tax taxes uh for the year. It's
Speaker 1: so interesting because Donald Trump has made one of the
Speaker 1: platforms of his campaign. One of the planks in his platform,
Speaker 1: I should say that he's against inversions because he doesn't
Speaker 1: like it when people avoid taxes. Um, even though he
Speaker 1: has no problem with obviously with bankruptcy, which he loves
Speaker 1: to file bankruptcy. And uh, apparently he's not going to
Speaker 1: tell us whether or not he's inverting to avoid taxes. Well,
Speaker 1: he's he's uh been able to navigate that kind of
Speaker 1: contradiction in the past in his campaign. He's been able
Speaker 1: to say, you know, I've taken advantage of the rules
Speaker 1: that that are in place right now, whether it's bankruptcies
Speaker 1: or or other things. And and I know the system
Speaker 1: really well. And that's what made me a rich man,
Speaker 1: and that's what makes me uh most qualified to be
Speaker 1: president because I know the rules and I know how
Speaker 1: to fix them, and I know how to leave the
Speaker 1: nation to UH to greatness. As he says, Let's turn
Speaker 1: our attention now to some of the polling that has
Speaker 1: been done specifically in states such as Colorado, North Carolina,
Speaker 1: and Virginia. This all demonstrates what that Hillary Clinton is
Speaker 1: ahead of the polls she's definitely had in nationally and
Speaker 1: also in UH in a lot of important battlegrounds. And
Speaker 1: I think the most interesting UH conclusion I draw from
Speaker 1: this today is UH is it wasn't too long ago
Speaker 1: before the conventions that UH that Trump's Paine was really
Speaker 1: be betting on a strategy of winning the rust belt,
Speaker 1: going in winning Ohio, Pennsylvania, UM. And that was that
Speaker 1: was a place that was particularly receptive to to his
Speaker 1: message about about jobs being killed because of trade treaties.
Speaker 1: It was interesting yesterday when Hillary Clinton gave her economics
Speaker 1: UM plan in Warren, Michigan. I believe she was at
Speaker 1: like a rocket factory. UM. She had even bigger American
Speaker 1: flags than Donald Trump has had in the past, and
Speaker 1: she seemed to be painting this picture that she wanted
Speaker 1: to bring us back to like a manufacturing economy UM.
Speaker 1: And she seemed to be almost as protectionists as Donald Trump. Yeah,
Speaker 1: she's definitely uh come come uh a long way from
Speaker 1: being supportive of of deals like the t p P,
Speaker 1: which she never said that she would back, but but
Speaker 1: said complimentary things about it. Um. And I think what
Speaker 1: you're seeing, uh in the language that she's using on
Speaker 1: the trail is is uh she's she's talking about growing jobs,
Speaker 1: and she's talking about bringing uh, bringing jobs back to
Speaker 1: the country, but she's talking about them in terms of
Speaker 1: the future what jobs should should rebuild rather than what jobs,
Speaker 1: uh we should save. And but she's I mean, yesterday
Speaker 1: she seemed to be obviously panting, pandering to this rocket crowd.
Speaker 1: And that makes me think of like jobs from the fifties, right.
Speaker 1: It was a future Ramic Future Ramic was the name
Speaker 1: of the company, and they make very highly machine parts
Speaker 1: and tools and dies for the space industry. One of
Speaker 1: the biggest customers is NASA. Just so so that that
Speaker 1: was a very carefully chosen location because of that, like
Speaker 1: that that you could see that industry growing in some
Speaker 1: you know, in some hopeful future where we're exploring space
Speaker 1: and and a lot of jobs are are being dedicated
Speaker 1: to that effort. Tell us a little bit about Donald
Speaker 1: Trump and the relationship of his campaign to those of
Speaker 1: other Republicans who are running. Specifically, I was looking at Colorado, right,
Speaker 1: because there's an incumbent Democrat, Michael Bennett, he's the Senator.
Speaker 1: He's got a fifteen point lead over his Republican challenger. Yeah,
Speaker 1: so this is really a major breaking point for the
Speaker 1: campaign when it comes to when you look at these
Speaker 1: polls you've uh, you know, the first thing you see
Speaker 1: is that Donald Trump has some problems. But but voters
Speaker 1: tend to vote down the ticket and and look at
Speaker 1: uh and if they're not excited about the candidate at
Speaker 1: the top, they won't show up for the ones beneath that.
Speaker 1: And so that's that's something that is at the core
Speaker 1: of the tensions between the Republican National Committee and the
Speaker 1: Trump campaign. That Trump is raising helping raising money for
Speaker 1: those campaigns, and but the things he's doing to generate
Speaker 1: bad press for Republicans in general are definitely are definitely
Speaker 1: harmful to those other races. Also North Carolina. Yeah, North
Speaker 1: Carolina is the state that Obama one in two thousand eight,
Speaker 1: lost in two thousand uh in two thousand twelve, and
Speaker 1: he and he uh and it is trending Democrat. But
Speaker 1: it was definitely in the in the toss up category
Speaker 1: on everyone's maps. But today it's uh, it's just a
Speaker 1: huge leading. It's starting to look very solid for Hillary Clinton.
Speaker 1: And what that does is that opens up the map
Speaker 1: in different ways. So while Trump was hoping to win
Speaker 1: the rust Belt and then uh and then get to
Speaker 1: the White House, uh, he could he could win the
Speaker 1: rust Belt and then UH and still lose the election
Speaker 1: because Hillary Clinton has way far more ways to win
Speaker 1: this election than he does. So obviously, UM, so far,
Speaker 1: calling out Trump has been a really bad call. I mean,
Speaker 1: I've noticed five thirty eight was telling me for months
Speaker 1: and months that he would never win UM, that the
Speaker 1: Republican nomination, and of course here we are. However, I
Speaker 1: have heard at least three people in the last week
Speaker 1: tell me that Donald Trump could actually drop out of
Speaker 1: this race, including Peter Atwater from Financial Insights. UM. Are
Speaker 1: you hearing that more and more? Am I just listening
Speaker 1: to UM all the right programs? Yeah? I really that's
Speaker 1: hard to take seriously at this point. I think he's uh,
Speaker 1: you know it it. I think it speaks to the
Speaker 1: enormous pressure that any presidential candidate is under especially when
Speaker 1: they're facing a steep climb to be competitive in a race.
Speaker 1: I mean, there's there are whole books written about John
Speaker 1: McCain's struggle to to uh get up every day and
Speaker 1: hit the campaign trail when he knew he was down
Speaker 1: so much that he he couldn't possibly win. So so
Speaker 1: I think that would win any candidate. It definitely weighs
Speaker 1: on Donald Trump. I mean, we can't forget that Donald
Speaker 1: Trump was ahead in the polls just two weeks ago.
Speaker 1: It's not like the guy's been down for months and months, right, Yeah,
Speaker 1: And he I think he is confident in some things.
Speaker 1: He can show up every day to uh, you know,
Speaker 1: to a rally where over ten thousand people are there
Speaker 1: and very pumped to be supporting him, And that's definitely
Speaker 1: a sign of life that you don't see on the
Speaker 1: other on the other side of this race. And so
Speaker 1: he they draw a lot of confidence from that, and um,
Speaker 1: and they hope to tap it to to win these
Speaker 1: battle grounds. Mike, Uh, you know, I know that everyone's
Speaker 1: focused on the presidential race, but we've also got a
Speaker 1: race for House and Senate seats. Mitch McConnell coming out
Speaker 1: and saying that he might not be the majority leader
Speaker 1: because there are twenty four GOP seats on the ballot.
Speaker 1: Is it possible we're going to see a Democrat Senate
Speaker 1: as well as gains in the House. Uh yeah, I mean,
Speaker 1: if you're hearing it from Mitch McConnell, you could you
Speaker 1: can bet that it's a possibility. He's he's nervous, A
Speaker 1: lot of individual senators are nervous and uh, and that
Speaker 1: is definitely a nightmare scenario for Republicans. I want to
Speaker 1: thank you very much for coming in and spending time
Speaker 1: with us. You're gonna have a busy couple of months,
Speaker 1: I know. Thanks. Mike meets that he is an executive
Speaker 1: editor for Bloomberg Politics, giving us the details of the
Speaker 1: race as it is and the polls that have been
Speaker 1: taking place to see whether indeed Hillary Clinton can outpace
Speaker 1: Donald Trump, the Republican contender. Alright, it is twelve fifty
Speaker 1: seven on Wall Street. We are watching markets that continue
Speaker 1: to churn down, down across down about four points SMP
Speaker 1: five hundred, down about four points one. Right now, this
Speaker 1: is Bloomberg. M