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Speaker 1: Brought you by Bank of America, Mary Lynch. Investing in

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Speaker 1: local communities, economies and a sustainable future. That's the power

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Speaker 1: of global connections, Mary Lynch, Pierce Fenner and Smith Incorporated

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Speaker 1: member s I p C. Welcome to the Bloomberg Surveillance Podcast.

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Speaker 1: I'm Tom Keene with David Gura. Daily we bring you

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Speaker 1: insight from the best of economics, finance, investment, and international relations.

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Speaker 1: Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, Bloomberg dot Com,

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Speaker 1: and of course, on the Bloomberg. We begin with Peter

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Speaker 1: Hooper today. He's chief economist at Deutsche Bank. Joins Tom

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Speaker 1: in our Bloomberg eleven three oh studios in New York. Peter,

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Speaker 1: great to speak with you. As always, Let's start with

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Speaker 1: the data on offer today, particularly when it comes to

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Speaker 1: industrial production. How important is this read going to be?

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Speaker 1: Yes to you but also to the Fed Reserve policy makers. Uh.

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Speaker 1: You know, industrial production is sort of a second line indicator.

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Speaker 1: It's it is important. Uh. Certainly it's been on the

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Speaker 1: weaker side of GDP. Uh, sort of LaGG defects of

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Speaker 1: past appreciation of the dollar. But we're expecting a moderate

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Speaker 1: pick up today. Let me ask you just more generally

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Speaker 1: here about the state of the US economy, again in

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Speaker 1: the context of what the FED is going to be

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Speaker 1: looking for when it meets here in in a few

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Speaker 1: days at time. What are the deficits, steal what what? What?

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Speaker 1: What might those policy makers be worried about at this

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Speaker 1: point when they look at the at the U s

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Speaker 1: economy as a whole. Well, we've we've been through a

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Speaker 1: very weak first quarter. UH signs in consumer rebound are

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Speaker 1: are encouraging, at least in terms of some of the

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Speaker 1: upward revisions we've had the past retail sales numbers. UH so.

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Speaker 1: So consumer obviously is is the most important element here,

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Speaker 1: but we're also looking to see are we are we

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Speaker 1: beginning to see some positive to pay off on on

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Speaker 1: business investment spending. It's the numbers have been pretty good

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Speaker 1: of late. Does that continue? UH? Is that getting a

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Speaker 1: lift from UH? This is UH remarkable rise in animal spirits,

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Speaker 1: which seems to be sustained so far through all the

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Speaker 1: negative news out of Washington, etcetera. But I think those

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Speaker 1: are the two key areas. Net exports have been a

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Speaker 1: drag again lagged response to past appreciation of dollar UM,

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Speaker 1: but overall, I think I think the FED is going

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Speaker 1: to be uh, most interested in continued progress in the

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Speaker 1: in the labor market on the activity side, uh, and

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Speaker 1: that's held up very well despite very week first quarter

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Speaker 1: payroll employment averaging hundred and seventy thousand per month, uh,

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Speaker 1: well above the underlying trend and labor supply, and the

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Speaker 1: labor market continues to tighten. Are we seeing a narrowing of,

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Speaker 1: if not a marriage of the soft data and the

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Speaker 1: hard data at this point you mentioned the animal spirits.

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Speaker 1: Is the hard data catching up to the exuberance of

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Speaker 1: the soft data at this point, it's going in that direction.

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Speaker 1: I don't know that is fully caught up yet, but

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Speaker 1: but certainly we do expect I mean, the consensus expectations

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Speaker 1: somewhere between three and four percent on on the second

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Speaker 1: quarter growth depending on who you talk to. Our our

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Speaker 1: numbers maybe a little south of three and a half.

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Speaker 1: But uh, we're certainly in the monthly data we're moving

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Speaker 1: that direction. People. Let me ask you about Europe. We

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Speaker 1: had a meeting yesterday between the new President of France

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Speaker 1: and the Chancellor of Germany, Angela Merkel. Are we turning

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Speaker 1: a page when it comes to the European economy as

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Speaker 1: a result of that election in France. Are we are

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Speaker 1: we're putting some of that political risk behind us? Are

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Speaker 1: we seeing moving in a new direction now that we

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Speaker 1: have what I would say is a different they knew

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Speaker 1: we're different alliance here between France and Germany. Well, certainly

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Speaker 1: the outcome in France was was better than expected or

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Speaker 1: or feared, should we say? I mean uh? And Machon

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Speaker 1: has has been saying, well, all the right things and

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Speaker 1: meeting with Miracle yesterday certainly a plus. Um. Uh. Macron

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Speaker 1: does have uh, some major challenges ahead. I mean, he's

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Speaker 1: got to get to get his parliamentary election going. He's uh,

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Speaker 1: will you have enough support with his own party? A

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Speaker 1: nation party began to pick up enough support there? Uh?

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Speaker 1: And then then obviously the menu ahead uh, some significant

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Speaker 1: labor market reforms which are not going to be terribly

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Speaker 1: politically popular in France. How long does his popularity last?

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Speaker 1: How much progress can he can he make in a

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Speaker 1: direction that France does need to need to make h

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Speaker 1: for the good of the European economy overall? Peter Hooper

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Speaker 1: were the center of New York Studios. Date where are you, David?

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Speaker 1: I don't even know where you are people block away

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Speaker 1: from our bureausent. Yes, very good, David, Good morning in

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Speaker 1: a beautiful Washington. We should point out thanks that John

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Speaker 1: Tucker for catching this with a new slow We must

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Speaker 1: at least bring to you every tweet the President of

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Speaker 1: the United States quote as President, I wanted to share

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Speaker 1: with Russia parentheses at an openly scheduled White House meeting,

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Speaker 1: close parentheses which I have the absolute right to do,

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Speaker 1: facts pertaining dot dot dot dot. So, to be fair

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Speaker 1: to our listeners worldwide, will wait for a little bit more.

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Speaker 1: But we can state to you the President is tweeting

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Speaker 1: today with this Peter Hooper, as we talk about three

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Speaker 1: percent growth and optimism. The President wants to make America

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Speaker 1: great again, Peter Hooper, and he has delivered an optimistic

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Speaker 1: message about economic growth. Did that help? Well, it's not

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Speaker 1: only giving a message where he hoped intended to get

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Speaker 1: some tax reform done and a number of other legislative

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Speaker 1: issues which which have bogged down in what appears to

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Speaker 1: be the usual gridlock. Who we uh those optimists At

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Speaker 1: the turn of the year, I felt that at least

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Speaker 1: the Republican Party would would would hold it together and

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Speaker 1: be able to get some things done. Um. The strength

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Speaker 1: of the Freedom Caucus was not fully anticipated. UM. What

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Speaker 1: the administration does seem to have achieved that with some

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Speaker 1: positive payoff to the economy potentially is uh the perception

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Speaker 1: of a more business friendly regulatory environment. This. This may

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Speaker 1: have cost down the road, but for the time being

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Speaker 1: near term, Uh, this has been a factor we think

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Speaker 1: that has lifted animal spirits and is likely to give

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Speaker 1: business spending somewhat of a lift uh the second half

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Speaker 1: of the year. Um. Of course, that all depends on

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Speaker 1: how things continue to go in Washington. Let me well,

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Speaker 1: in Washington, let's go to where David Gurry is. Dr Hooper,

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Speaker 1: you can help us out the future smart cities, spotlight

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Speaker 1: and infrastructure. I mean, John Tucker just going down fifty

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Speaker 1: ninth Street. This more is there repaving. It is enough

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Speaker 1: to kill a tractor trade in Manhattan. At least they're

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Speaker 1: they're doing some infrastructure spending. Where are we what? Why

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Speaker 1: is it so hard Peter that Uh? The spending side

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Speaker 1: is something that the Republican Party has not been uh

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Speaker 1: terribly supportive of. UM. Tax cuts are fine, but the

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Speaker 1: conservatives on in in the Republican side, uh, blanche at

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Speaker 1: the thought of any kind of major infrastructure spending plan.

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Speaker 1: So that aspect of the Trump agenda is going to

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Speaker 1: is going to face some tough sledding unless we attempt

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Speaker 1: to go to go to the middle and work with

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Speaker 1: the Democrats. I don't I don't see that happening right away.

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Speaker 1: Is there? Just when you look at this sort of universally,

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Speaker 1: we were focusing on what was happening in Beijing over

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Speaker 1: the weekend. We'll talk to Dinat Lap about that and

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Speaker 1: just in just a little bit, but the president of

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Speaker 1: China trying to get a private industry to invest in

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Speaker 1: infrastructure projects. Astensibly that would be what was gonna happen

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Speaker 1: here if we get to what the Presidence described a

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Speaker 1: public private partnership. Are you satisfied there's the appetite for

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Speaker 1: that that investors are standing by ready willing and able

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Speaker 1: to give money to these projects. I don't have a

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Speaker 1: good beat on exactly how strong the support is for that.

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Speaker 1: I think there's certainly is some uh certainly the lift

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Speaker 1: in business sentiment um has been uh an indicative of

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Speaker 1: some support there um. But I think you know how

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Speaker 1: much how much is the federal government gonna add into

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Speaker 1: this to to get it going to stimulate it um

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Speaker 1: some questions there, Peter Hooper, thank you so much, greatly

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Speaker 1: appreciate it, particularly your time given the new slow that

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Speaker 1: we've seen today. David gurin Washington with the Bloomberg Smart

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Speaker 1: Cities event. I'm Tom Keen in uh New York. Here's

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Speaker 1: the entire two tweets from the President. As President, I

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Speaker 1: wanted to share with Russia parentheses at an openly scheduled

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Speaker 1: White House meeting. Closed parentheses which I have the absolute

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Speaker 1: right to do, facts pertaining to terrorism and airline flight safety,

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Speaker 1: humanitarian reasons. Plus, I want Russia to greatly step up

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Speaker 1: their fight against ISIS and terrorism. One of our joys

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Speaker 1: is to speak to James Stevitas, the former Supreme NATO Commander,

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Speaker 1: Admiral U S. Navy, at the Fletcher School at Tufts.

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Speaker 1: Admiral Stevitas the parentheses at an openly scheduled White House meeting.

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Speaker 1: I believe the international relations phrase used to Fletcher is hogwash.

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Speaker 1: Help me here with where we are distill for us

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Speaker 1: away from the hysteria. The import of this to our

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Speaker 1: military and to our intelligence services, Thomas is deeply disturbing.

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Speaker 1: And and let's start with the tactical which is, as

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Speaker 1: you and David no intell, this kind of mosaic and

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Speaker 1: people hold different bits of color and then they get

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Speaker 1: a new data bit and it allows them to fill

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Speaker 1: in a picture. That's what was provided to the Russians.

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Speaker 1: And we are not on the same side as the

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Speaker 1: Russian either geopolitically in the world or tactically in serious

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Speaker 1: so big tactical failure. Secondly, this really puts our allies

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Speaker 1: in a position of wondering whether or not to share

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Speaker 1: information with us, and that can be devastating because counter

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Speaker 1: terrorism is the ultimate team sport. And lastly, who's the

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Speaker 1: winner here? It's Russia. More confusion, more turmoil in Washington,

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Speaker 1: less confidence in our nation. So it's hard to think

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Speaker 1: of anything the President could have done which would royal

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Speaker 1: the international system in a more dramatic and difficult way

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Speaker 1: than this. A about the position that hr McMaster is in.

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Speaker 1: We were watching yesterday outside the White House. His reporters

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Speaker 1: waited for him to come out and deliver his statement.

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Speaker 1: He did. It was short, and what he said was,

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Speaker 1: I was in the room. We looked a few other

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Speaker 1: people who were in the room as well. I was

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Speaker 1: in the room, and this didn't happen today. Judging by

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Speaker 1: the tweets that Tom just read, it sounds like he's

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Speaker 1: been contradicted by his boss. Indeed he has. And I

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Speaker 1: think the only defense I can offer for General McMaster,

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Speaker 1: who is a dear friend of mine and a wonderful,

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Speaker 1: wonderful individual, is simply that he was denying that specific

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Speaker 1: sources and methods were revealed. Um. What is very clear

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Speaker 1: at this point is that highly classified information was given

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Speaker 1: to the Rush. I can't imagine his try and deny that. Lastly,

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Speaker 1: on Hr McMaster, here's a guy who wrote the book

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Speaker 1: about speaking truth to power, and it's all about his

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Speaker 1: ability to to take that to the President. And I

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Speaker 1: shut this kind of behavior down and point out the

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Speaker 1: notes this morning folks such as Mike Allen and AXEO.

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Speaker 1: So it was the real sourcing to the White House

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Speaker 1: talk about lives at risk. That's how serious this is. Admiral. Unfortunately,

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Speaker 1: I'm reading Eric Laarabie's Commander and if about f DR,

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Speaker 1: I'm I'm blaming you for this, sir. And what I'd

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Speaker 1: like to know is where is Stimpson, Where is happ Arnold?

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Speaker 1: Straighten out the president? Where are the adults such as

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Speaker 1: General Maddis, when do they march into the Oval office

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Speaker 1: and say what Senator Corker wants, This must stop, hopefully today.

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Speaker 1: And I think that I've been on with you and

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Speaker 1: David many times, and I said, one of the things

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Speaker 1: that does give me some hope about this administration is

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Speaker 1: the presence of General Maddus, Rex jell Orson a global

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Speaker 1: fortune CEO, and hr McMaster. But boy, it's a it's

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Speaker 1: pretty cloudy morning out there in terms of their behavior,

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Speaker 1: and I think they're going to have to step up

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Speaker 1: to the plate fairly soon on this. Let me play

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Speaker 1: Devil's advocate a little bit here. When you when you

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Speaker 1: join the military, when you're first exposed to this kind

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Speaker 1: of information, what are you taught about how to keep

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Speaker 1: track of all of it? In other words, we've got

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Speaker 1: a president here with no government experience, learning on the

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Speaker 1: job by necessity. I think that's a fair thing to say.

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Speaker 1: How hard is it to keep track of all of this?

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Speaker 1: How do you keep track of what's confidential, top secret,

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Speaker 1: all these classifications? You know? I think David, we start

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Speaker 1: in kindergarten learning how to keep a secret, and we

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Speaker 1: go through elementary school and junior, high school and high school,

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Speaker 1: and we make mistakes along the way we reveal things.

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Speaker 1: Most people, by the time they're kind of in college

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Speaker 1: maybe know that when there's something really important at stake,

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Speaker 1: you keep a secret. Traiming in the military is no

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Speaker 1: more complicated than that. You're told that these are secrets

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Speaker 1: which must be protected for the good of the nation.

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Speaker 1: I don't think there's anything mysterious or magical about that,

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Speaker 1: and I'm frankly what is particularly worrisome is that he

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Speaker 1: didn't reveal the information UH to a friendly power or

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Speaker 1: even a This is to rush with whom we have

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Speaker 1: significant political disagreement. Will we value a perspector to think

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Speaker 1: so much? James Travilla is with UH at your school.

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Speaker 1: Brought you by Bank of America. Mary Lynch, dedicated to

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Speaker 1: bringing our clients insights and solutions to meet the challenges

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Speaker 1: of a transforming world. That's the power of global connections.

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Speaker 1: Mary Lynch, Pierce Feeder and Smith Incorporated Member s I

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Speaker 1: p C. There's something new from Bloomberg. It's called Lens.

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Speaker 1: Starting right now, you can use the Bloomberg iOS app

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Speaker 1: off your iPhone or iPad, or our new Google Chrome

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Speaker 1: from Bloomberg. In addition, see all the bios of the

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Speaker 1: key people mentioned in the story. It's called lens and

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Speaker 1: it is just that, a lens into the people and

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Speaker 1: Lens brings you the power of Bloomberg's news and data.

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Speaker 1: extension at the Chrome Store to try lens out. Learn

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Speaker 1: more at Bloomberg dot com, slash lens now. On trade,

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Speaker 1: but really on the events in Washington, as our David

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Speaker 1: gurus at our Smart City conference with Bloomberg Government. Uh.

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Speaker 1: Ted Holton is in our Washington studios as well. Here

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Speaker 1: is with the Council on Foreign Relations. Ted. We've talked

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Speaker 1: about this through the morning, but let's recapitulate with the

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Speaker 1: tweets that we see from the president. How does this

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Speaker 1: fold into trade? How does the president's dialogue with other

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Speaker 1: nations change because of these these these issues? Well, I

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Speaker 1: mean I think there's just they're going to be growing

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Speaker 1: underlying questions about the reliability and trust worthiness of the

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Speaker 1: United States under this president, and and that's obviously matters

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Speaker 1: a lot for trade negotiations as well. Other countries need

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Speaker 1: to know that the United States is going to behave

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Speaker 1: in a consistent fashion, that it's going to live by

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Speaker 1: the word of its commitments. And so I just think

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Speaker 1: this is going to cause a lot of questions internationally

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Speaker 1: that will spill over into other realms outside of intelligence

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Speaker 1: share to let me ask you about what changes now

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Speaker 1: that we have a US trade representative. We'll get back

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Speaker 1: to the sort of general scene here in Washington, just

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Speaker 1: a sect. But it's been a long time of waiting

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Speaker 1: here for the administration to get Robert Ledheiser confirmed. All

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Speaker 1: the while we've seen the Secretary of Commerce, Wilbert Ross,

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Speaker 1: really acting at the vanguard of shaping this administration's trade policy.

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Speaker 1: What do we know about Mr Leightheiser in the direction

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Speaker 1: he might take trade policy in. Yeah, I mean, I

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Speaker 1: think potentially a lot changes. Bob Lightheiser is a very

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Speaker 1: experienced trade policy professional. He was the deputy US Trade

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Speaker 1: Representative in the Reagan administration. Uh lad a lot of

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Speaker 1: the trade battles that were fought with Japan back in

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Speaker 1: the in the nineties, and he's got very strong opinions.

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Speaker 1: I know, you know, a lot of folks are kind

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Speaker 1: of sanguine. Now, the United States didn't name China currency manipulator.

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Speaker 1: President Trump didn't pull us out in AFTA. But you know,

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Speaker 1: listen to what Bob Leitheiser said at the White House

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Speaker 1: yesterday on his swearing in. He he said he's going

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Speaker 1: to help President Trump quote permanently reverse the dangerous trajectory

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Speaker 1: of American trade policy. So he really sees himself as

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Speaker 1: uh taking the United States in a very very different

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Speaker 1: direction on trade. And there's no question he's got the

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Speaker 1: the ability and the smarts to do that. How much

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Speaker 1: of a continuum is there? You go back to Japan

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Speaker 1: and the trade policy talks involving that country. How applicable

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Speaker 1: are the lessons learned from that to what we're seeing today. Well,

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Speaker 1: we're in a very different world and and and it's

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Speaker 1: a world that that Bob Lightheiser doesn't like a lot.

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Speaker 1: I mean, back when the United States and Japan were

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Speaker 1: in their trade battles, the United States was able to

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Speaker 1: threaten to restrict Japanese access to the US market unless

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Speaker 1: Japan open up to the United States. You know, we

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Speaker 1: we slammed him over semiconductors and wratten over autos. They're

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Speaker 1: the rules of the World Trade Organization. Now you can't

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Speaker 1: really do that. And one of Lightheiser's goals he's articulated

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Speaker 1: over many years is to try to bring back some

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Speaker 1: of that old flexibility. I think Wilber Ross wants to

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Speaker 1: go down the same road. Oh that that was my

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Speaker 1: next question. Are we seeing a partition now of Ross

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Speaker 1: Navarro theory? I mean they've been joined at the hip

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Speaker 1: since the day of the inauguration? Is it is there

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Speaker 1: finally a distinction between a Secretary of Commerce and Dr Navarro? Well?

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Speaker 1: I mean I think I think, you know, Bob Lightheuser

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Speaker 1: kind of completes a triumvirate there. I I think they

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Speaker 1: all share a similar view of the world. The difference

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Speaker 1: is that Lightheiser really knows how to pull the levers.

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Speaker 1: I mean, Wilbert rosscot had a lot of experience in business,

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Speaker 1: knows a lot about the steel industry, but it's not

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Speaker 1: a real expert on trade policy and the different enforcement mechanisms.

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Speaker 1: Bob Lightheiser is. He knows how to get things done.

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Speaker 1: Is he a zero sum, neo mercantile guy, or is

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Speaker 1: he like completely opposite of the of the screed. I mean,

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Speaker 1: I don't think he's an entirely zero somebody's much more

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Speaker 1: on the zero some side than than I. You know,

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Speaker 1: I think what's been called the globalist wing of the administration,

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Speaker 1: you know, uh, Gary Cohen and Steve Manuchin. I think

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Speaker 1: Lightheiser does see the United States is in a real

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Speaker 1: trade competition with China in particular, but other countries as well.

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Speaker 1: Let's come back Ted Alton with It's a Console of

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Speaker 1: Foreign Relations. He has a beautiful book out that we'll

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Speaker 1: talk about in our next section on trade. It is dense,

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Speaker 1: it is complete. It will shatter the illusions the myths

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Speaker 1: that we have about trade failure to adjust. Let's get

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Speaker 1: wonky with Ted waldon Council on Foreign um Relations. As

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Speaker 1: we talk about trade, Ted, help me here with imports?

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Speaker 1: Do they save us a lot of money? Is a

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Speaker 1: general amateur statement when you sift through the partial differentials

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Speaker 1: of trade. Do we save a lot of money this

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Speaker 1: day in imports? Oh? I think there's no question. That's

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Speaker 1: where most of the gains from trade are to to

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Speaker 1: our nary Americans. Example I use often is clothing. You

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Speaker 1: go back to the early nineties seventies, when when we

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Speaker 1: didn't trade a lot, and the average American household spent

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Speaker 1: about seven percent of his family budget on clothing. Today's

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Speaker 1: less than three percent. You know, anybody goes to the

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Speaker 1: mall knows that there are bargains galore, and a lot

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Speaker 1: of that is the result of inexpensive imports. And there

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Speaker 1: are a lot of other products for which that's true.

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Speaker 1: So yeah, no question saves Americans a lot of money.

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Speaker 1: How and how soon are we going to see the

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Speaker 1: fallout from these counterfailing duties that have applied to to

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Speaker 1: softwood from Canada. I know that there's concerning the housing sector.

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Speaker 1: Is that going to have a big effect on housing

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Speaker 1: here in the US? Yeah, I mean I think it's

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Speaker 1: gonna have a small but but significant effect. Yeah. I mean,

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Speaker 1: the duties are being collected all already. Whether they will

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Speaker 1: be held or not depends on on on later decisions

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Speaker 1: coming from the International Trade Commission and other bodies. But

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Speaker 1: but you know, in the past, when the United States

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Speaker 1: has put duties on softwood lumber imports from Canada, the

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Speaker 1: price has gone up somewhat. Now now it's all set

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Speaker 1: by the fact that Canadian dollar is so weak and

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Speaker 1: so some of the cost increase will will be lessened

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Speaker 1: by the weakness of the Canadian dollar, but it will

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Speaker 1: have some impact in the housing market, no question. You

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Speaker 1: see the role of the w t O being not

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Speaker 1: going forward here. You see these sort of piecemeal left

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Speaker 1: roots by this administration when it comes to software, comes

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Speaker 1: to dairy, it comes to other products, and it seems

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Speaker 1: like they're flouting the role of the w t O

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Speaker 1: the years that went into crafting some of these tariff agreements.

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Speaker 1: What's the role of the w t A going to

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Speaker 1: be under the Trump administration. Well, I mean it's still

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Speaker 1: gonna be there. That Canadians could could well uh appeal

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Speaker 1: the American action on software to the w t O

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Speaker 1: they have in the past. I think the problem with

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Speaker 1: the w t O is twofold one. It's based on

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Speaker 1: a set of rules that now are in many respects

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Speaker 1: twenty years out of date. The basic rules of the

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Speaker 1: World Trade Organization were set in the mid ninety nineties,

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Speaker 1: and it's been impossible to update those rules through new negotiations,

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Speaker 1: so I think they become less and less relevant over time.

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Speaker 1: The other problem, it's just the United States under the

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Speaker 1: Trump administration send a lot of signals that it won't

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Speaker 1: be bound by w t O decisions. We'll have to

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Speaker 1: see how that plays out, but this is the first

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Speaker 1: administration to threaten not to comply with w t O rulings.

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Speaker 1: And now, folks, it's time for the Tuesday dumb question.

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Speaker 1: No such things questions ted, Are we basically doing t

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Speaker 1: T t p P without doing t p P. Is

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Speaker 1: that what this trade is gonna be? Well, I mean

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Speaker 1: then after renegotiation, I think is going to be based

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Speaker 1: largely on what was done in in the t p P.

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Speaker 1: And I think there was a great piece by Bob

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Speaker 1: Davis in the Wall Street Journal this morning suggesting that

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Speaker 1: it's not impossible that the administration will take another look

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Speaker 1: at the t p P. It's a it's gonna be

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Speaker 1: the template for the talks with Mexico and Canada, and

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Speaker 1: it it would have given the United States a lot

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Speaker 1: of leverage over China. So I'm I'm I can't say

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Speaker 1: I'm hopeful, but but I still think that there may

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Speaker 1: be some room for this administration to take another look

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Speaker 1: at what it did in pulling out of the TPP.

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Speaker 1: I think that's why the rest of the countries are

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Speaker 1: kind of keeping the corpse warm just in case the

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Speaker 1: US changes its mind's at the table for U. So

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Speaker 1: we're gonna talk to Diana tra Levi here just in

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Speaker 1: a couple of minutes. But let's look at the broader

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Speaker 1: trade landscape. What did we learn about it from the

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Speaker 1: forum convened in Beijing over the weekend, And what does

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Speaker 1: that say to you about global trade the direction of

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Speaker 1: global trade? Well, I guess you know what I'm encouraged

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Speaker 1: about listening to the Chinese is well, obviously they have

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Speaker 1: regional priorities that kind of top their agenda on trade.

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Speaker 1: I think the Chinese are aware that they have been

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Speaker 1: big beneficiaries of the system of global trade rules under

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Speaker 1: the w t O. They are talking more and more

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Speaker 1: we'll see whether the actions follow, but talking more and

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Speaker 1: more about playing a responsible role in trying to safeguard

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Speaker 1: and build on those rules. So so I was encouraged

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Speaker 1: by what I heard coming out of the out of

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Speaker 1: the meetings over the weekend. How how efficacious would would

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Speaker 1: a TPP be without the the US. How strong an

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Speaker 1: agreement would it be? I think it's it's fairly irrelevant,

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Speaker 1: I think, you know, on the rules front, unless the

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Speaker 1: US is involved it it. It doesn't have h a

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Speaker 1: lot of um, you know, it doesn't set a template

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Speaker 1: for the world going forward. And I think on you know,

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Speaker 1: on the simple market access side, you know, what tariffs

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Speaker 1: get removed without the US, They're gonna have to renegotiate

430
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Speaker 1: the whole deal because it was based on having the

431
00:24:13,480 --> 00:24:15,760
Speaker 1: US involved. So so I think it's pretty empty without

432
00:24:15,760 --> 00:24:21,360
Speaker 1: the United States. Are we mercantile? Are we heading towards mercantile? Oh?

433
00:24:21,400 --> 00:24:23,320
Speaker 1: I think there. I think there's no question. I think

434
00:24:23,359 --> 00:24:28,560
Speaker 1: this administration is more deliberately mercantilists than than than we've

435
00:24:28,600 --> 00:24:31,400
Speaker 1: ever not ever, but seen in maybe seventy five years

436
00:24:31,480 --> 00:24:34,280
Speaker 1: and in the United States. And and you know, I'm

437
00:24:34,560 --> 00:24:37,520
Speaker 1: not entirely opposed to that. I think sometimes and I

438
00:24:37,520 --> 00:24:39,840
Speaker 1: certainly write about this in my book, the US got

439
00:24:39,880 --> 00:24:43,120
Speaker 1: taken advantage of because the big Asian trading powers were

440
00:24:43,200 --> 00:24:46,200
Speaker 1: very mercantilist and we were not. I think some rebalancing

441
00:24:46,280 --> 00:24:49,080
Speaker 1: was overdue. But the question is how far the administration

442
00:24:49,119 --> 00:24:51,560
Speaker 1: is going to take it. Do we have more clarity

443
00:24:51,560 --> 00:24:53,560
Speaker 1: on that from all of these these piecemeal efforts that

444
00:24:53,560 --> 00:24:55,199
Speaker 1: I mentioned a few minutes ago, Is it is it

445
00:24:55,200 --> 00:25:00,000
Speaker 1: coming together? Trade plan trade philosophy. I mean slowly. There

446
00:25:00,000 --> 00:25:02,560
Speaker 1: a bunch of these discreet moves, you know, the investigation

447
00:25:02,640 --> 00:25:05,560
Speaker 1: into whether steel and aluminum imports are threatening US national

448
00:25:05,640 --> 00:25:08,600
Speaker 1: security that could result in broad tariffs on those products.

449
00:25:08,840 --> 00:25:12,280
Speaker 1: The investigation into our trading relationships with countries that run

450
00:25:12,280 --> 00:25:14,960
Speaker 1: a big surplus with the U S. China and Germany

451
00:25:15,040 --> 00:25:17,960
Speaker 1: and Mexico, Japan, Korea, among others. There's gonna be some

452
00:25:18,000 --> 00:25:19,720
Speaker 1: outcome to that. So there are a lot of balls

453
00:25:19,760 --> 00:25:22,200
Speaker 1: that are rolling. We don't exactly know yet where they're

454
00:25:22,200 --> 00:25:25,320
Speaker 1: gonna land. Ted Olden, thank you so much, greatly appreciated.

455
00:25:25,359 --> 00:25:41,960
Speaker 1: This morning with the Council on Foreign Relations, kick burning everyone,

456
00:25:42,080 --> 00:25:45,359
Speaker 1: Scarlet Food and Tom Keane Bloomberg Surveillance. Mr gurt a

457
00:25:45,440 --> 00:25:49,440
Speaker 1: Smart Cities event for Bloomberg Government in Washington. He's paneling

458
00:25:49,480 --> 00:25:53,040
Speaker 1: with mayors, so she picked the short straw Scarlet Food, Darkness.

459
00:25:53,280 --> 00:25:57,480
Speaker 1: It's an emotional homecoming for us. Is it's been very emotional.

460
00:25:57,520 --> 00:25:59,400
Speaker 1: I have to say, I'm still kind of, you know,

461
00:25:59,720 --> 00:26:02,639
Speaker 1: for we're, you know, trying to get through it as

462
00:26:02,640 --> 00:26:05,679
Speaker 1: we can. Scarlett Food in this important hour our Kevin's

463
00:26:05,680 --> 00:26:10,879
Speaker 1: surreally in conversation with the Senate Majority leader Addison Mitchell

464
00:26:10,960 --> 00:26:15,320
Speaker 1: McConnell Jr. A seventy five born in Alabama. But he

465
00:26:15,480 --> 00:26:20,720
Speaker 1: is Kentucky, Kentucky, Kentucky, and he is a pragmatist. He's

466
00:26:20,720 --> 00:26:22,480
Speaker 1: gonna have to be one after what we've seen the

467
00:26:22,560 --> 00:26:26,080
Speaker 1: last few weeks in Washington, and certainly in the last

468
00:26:26,119 --> 00:26:29,159
Speaker 1: twenty four hours. Really looking forward to Kevin Curreally's UH

469
00:26:29,280 --> 00:26:32,880
Speaker 1: discussion with the Senate Majority Leader. It has been an

470
00:26:32,880 --> 00:26:39,640
Speaker 1: extraordinary seventy two hours. Basically, I can't imagine what we'll

471
00:26:39,680 --> 00:26:43,200
Speaker 1: get us to Wednesday. One of our people with great

472
00:26:43,240 --> 00:26:49,560
Speaker 1: responsibility to report facts and avoid hysteria, has taken the

473
00:26:49,640 --> 00:26:52,640
Speaker 1: kool aid by our Mike Dorning and joins the style

474
00:26:52,680 --> 00:26:56,440
Speaker 1: Alex Wayne as our White House reporter. And Alex all

475
00:26:56,480 --> 00:26:59,480
Speaker 1: of the reports we get of a level of yelling

476
00:26:59,640 --> 00:27:02,840
Speaker 1: and dreaming last night at the White House, is there

477
00:27:02,920 --> 00:27:08,320
Speaker 1: yelling and screaming this morning this morning. But there's a

478
00:27:08,320 --> 00:27:10,480
Speaker 1: little bit of a drama going on on Twitter thanks

479
00:27:10,480 --> 00:27:14,360
Speaker 1: to the President. He apparently responded to the reports that

480
00:27:14,680 --> 00:27:18,040
Speaker 1: he shared classified information with Russians and at a meeting

481
00:27:18,119 --> 00:27:20,480
Speaker 1: last week by tweeting that he had the absolute right

482
00:27:20,560 --> 00:27:26,160
Speaker 1: to share quote facts with them. On airline safety. I mean,

483
00:27:26,240 --> 00:27:28,600
Speaker 1: I mean within this and Marty Schenker was un earlier

484
00:27:28,600 --> 00:27:30,399
Speaker 1: with us with the level of this area and this

485
00:27:30,600 --> 00:27:33,880
Speaker 1: and that and what is you in the Daily Grind?

486
00:27:34,320 --> 00:27:38,119
Speaker 1: Do you agree with the uproar over this or should

487
00:27:38,119 --> 00:27:42,400
Speaker 1: we be more measured? Um? I don't think people are

488
00:27:42,400 --> 00:27:44,080
Speaker 1: wrong to be a little bit alarmed. I mean, this

489
00:27:44,920 --> 00:27:49,119
Speaker 1: president is doing abnormal things. Um. He fired the FBI director.

490
00:27:49,840 --> 00:27:53,000
Speaker 1: That didn't even happen under Nixon, as the Nixon Library

491
00:27:53,040 --> 00:27:56,439
Speaker 1: communially pointed out to us today, it happened. Uh he

492
00:27:56,720 --> 00:28:00,119
Speaker 1: is he apparently if these reports are accurate, I have

493
00:28:00,160 --> 00:28:02,480
Speaker 1: no reason to think they aren't. He apparently shared classified

494
00:28:02,520 --> 00:28:05,600
Speaker 1: information with an American adversary, information that was provided by

495
00:28:05,640 --> 00:28:08,639
Speaker 1: a U s ally. That's it's not normal behavior for

496
00:28:08,680 --> 00:28:11,320
Speaker 1: the president. And I think Americans are are right to

497
00:28:12,520 --> 00:28:14,960
Speaker 1: look at this with a kind of a Johnice, Die

498
00:28:15,400 --> 00:28:17,600
Speaker 1: Alex and let me bring in my colleague Scarlet Food.

499
00:28:17,640 --> 00:28:20,480
Speaker 1: As we await the conversation of Kevin Surley with the

500
00:28:20,520 --> 00:28:25,640
Speaker 1: Senate Majority Leader Scarlett Well, the National Security Advisor McMaster

501
00:28:25,840 --> 00:28:28,160
Speaker 1: also came out and said that the story that came

502
00:28:28,160 --> 00:28:32,440
Speaker 1: out as reported is false. Um, but we haven't heard

503
00:28:32,520 --> 00:28:35,760
Speaker 1: much more from the rest of Washington. What is likely

504
00:28:35,800 --> 00:28:38,640
Speaker 1: to be the response. I mean, Kevin will surely be asking, uh,

505
00:28:38,680 --> 00:28:41,760
Speaker 1: the Senate Majority Leader Mitch McConnell about this as well.

506
00:28:41,800 --> 00:28:44,600
Speaker 1: How are they likely to position themselves? There's a whole

507
00:28:44,640 --> 00:28:50,040
Speaker 1: lot of alarm among congressional Republicans. Uh. The best quote

508
00:28:50,040 --> 00:28:52,080
Speaker 1: of the most interesting quote I saw yesterday was from

509
00:28:52,520 --> 00:28:56,720
Speaker 1: Bob Corker, the Sentate Foreign Relations Committee chairman, who said,

510
00:28:56,840 --> 00:28:58,400
Speaker 1: this White House needs to get a grip. I mean,

511
00:28:58,440 --> 00:29:00,959
Speaker 1: this is this is a guy who is pretty much

512
00:29:01,000 --> 00:29:03,320
Speaker 1: been a Trump ally. He was never a never Trumper

513
00:29:03,400 --> 00:29:05,560
Speaker 1: or anything like that. He was he had to believe.

514
00:29:05,560 --> 00:29:08,080
Speaker 1: He endorsed the president at some point last year. Um,

515
00:29:08,240 --> 00:29:10,800
Speaker 1: during the campaign. He says that the White House is

516
00:29:10,800 --> 00:29:14,080
Speaker 1: out of control, needs to needs to get things locked down. Yeah,

517
00:29:14,160 --> 00:29:18,520
Speaker 1: you don't hear that very often? Does do voices like

518
00:29:18,560 --> 00:29:21,760
Speaker 1: Bob Corker have an effect on the Trump administration? Have

519
00:29:21,880 --> 00:29:27,600
Speaker 1: you seen that kind of commentary from from outside affect

520
00:29:27,720 --> 00:29:31,080
Speaker 1: the way that the White House operates? No, I mean,

521
00:29:31,120 --> 00:29:34,440
Speaker 1: the president is a wild card. He's got a direct

522
00:29:34,480 --> 00:29:37,920
Speaker 1: line to the American people with this Twitter account. Uh.

523
00:29:38,000 --> 00:29:41,840
Speaker 1: The White House aids have tried and apparently failed to

524
00:29:41,840 --> 00:29:44,600
Speaker 1: persuade him to give that up. UM, and so he's

525
00:29:44,800 --> 00:29:48,800
Speaker 1: he's out there this morning on Twitter. UM. Essentially, a

526
00:29:48,800 --> 00:29:51,560
Speaker 1: lot of people think he's admitting that the story is correct.

527
00:29:51,600 --> 00:29:53,760
Speaker 1: I wouldn't go that far. I don't think he's he's

528
00:29:53,760 --> 00:29:56,520
Speaker 1: admitted that he's shared classified information with the Russians, but

529
00:29:56,560 --> 00:30:00,000
Speaker 1: he's he didn't exactly deny the story on Twitter this morning,

530
00:30:00,040 --> 00:30:03,040
Speaker 1: he's apparently claiming a right to to do what the

531
00:30:03,440 --> 00:30:06,160
Speaker 1: things the story alleges he did. Alex Wayne, thank you

532
00:30:06,200 --> 00:30:08,160
Speaker 1: so much for the briefing, and thank you for the

533
00:30:08,200 --> 00:30:10,720
Speaker 1: acuity of your work at the White House. Some of

534
00:30:10,800 --> 00:30:12,520
Speaker 1: us get to talk about it, folks. I don't make

535
00:30:12,600 --> 00:30:15,280
Speaker 1: light about it. We make jokes and we have conversation.

536
00:30:15,360 --> 00:30:17,680
Speaker 1: Alex Wayne is in the trenches trying to get the

537
00:30:17,720 --> 00:30:20,800
Speaker 1: facts straight and come up with the next day story. Yeah,

538
00:30:21,000 --> 00:30:25,720
Speaker 1: it is a name from my past, Senator John Sherman Cooper.

539
00:30:26,120 --> 00:30:30,080
Speaker 1: He had an intern fifty three years ago. His name

540
00:30:30,120 --> 00:30:34,160
Speaker 1: was Young McConnell, and Mitch McConnell, of course, pieced together

541
00:30:34,200 --> 00:30:38,320
Speaker 1: an internship under the great John Sherman Cooper UH in

542
00:30:38,400 --> 00:30:43,280
Speaker 1: the sixties towards four what is that thirty three years

543
00:30:43,280 --> 00:30:46,560
Speaker 1: ago being elected to the Senate by all the five thousand,

544
00:30:46,560 --> 00:30:49,880
Speaker 1: two hundred votes, that would be zero point four percent.

545
00:30:50,400 --> 00:30:53,760
Speaker 1: He's built on that over thirty years. I believe that

546
00:30:53,800 --> 00:30:57,760
Speaker 1: makes them five maybe a six term senator who's counting

547
00:30:58,320 --> 00:31:02,160
Speaker 1: into being the Senate priority leader. And needless to say,

548
00:31:02,200 --> 00:31:07,120
Speaker 1: Scarlett and Mr McConnell is buffeted by a fractious House

549
00:31:07,920 --> 00:31:10,600
Speaker 1: senators trying to figure out what to do in their

550
00:31:10,680 --> 00:31:16,040
Speaker 1: staggered elections two years apart over a sequence of six years,

551
00:31:16,760 --> 00:31:19,520
Speaker 1: and also with an original presidencies, this is going to

552
00:31:19,600 --> 00:31:22,640
Speaker 1: be something I like that original presidency. Tom, that's a

553
00:31:22,640 --> 00:31:25,720
Speaker 1: really good way of putting it. Uh, certainly Mitch McConnell

554
00:31:25,720 --> 00:31:27,640
Speaker 1: has his work cut out for him. I mean you

555
00:31:27,640 --> 00:31:31,040
Speaker 1: can look at healthcare for instance. Um, that House Republicans

556
00:31:31,080 --> 00:31:34,720
Speaker 1: passed the bill, and we know that the Senate has

557
00:31:34,760 --> 00:31:37,040
Speaker 1: made clear that they're not even going to start looking

558
00:31:37,040 --> 00:31:41,240
Speaker 1: at it until the CBO scores it. And by many reports,

559
00:31:41,240 --> 00:31:43,680
Speaker 1: they plan to start from scratch. They plan to start

560
00:31:43,720 --> 00:31:46,320
Speaker 1: from the very beginning and not not really take into

561
00:31:46,360 --> 00:31:48,520
Speaker 1: account with the House has passed. Yeah, the dynamics of

562
00:31:48,560 --> 00:31:50,840
Speaker 1: this are interesting, and certainly we've heard that day today

563
00:31:50,880 --> 00:31:54,160
Speaker 1: by Kevin Sireli. Mr Sireli out on the trail with

564
00:31:54,280 --> 00:31:58,440
Speaker 1: Mr Trump. Now in conversation with the Senate Majority leader

565
00:31:59,240 --> 00:32:04,720
Speaker 1: from Kentucky. Here is Kevin CURRELLI. I want to get

566
00:32:04,760 --> 00:32:07,120
Speaker 1: your take, first and foremost on the reports last night

567
00:32:07,120 --> 00:32:10,880
Speaker 1: and the Washington Post's your colleague, Senator Bob Corker, a

568
00:32:10,880 --> 00:32:13,160
Speaker 1: Republican from Tennessee, said that this White House is in

569
00:32:13,160 --> 00:32:15,840
Speaker 1: a quote unquote downward spiral. What do you make of

570
00:32:15,880 --> 00:32:18,600
Speaker 1: all this? Well, I read the Washington Post story, and

571
00:32:18,640 --> 00:32:24,800
Speaker 1: I read General McMaster's response, which tends to refute the story.

572
00:32:24,960 --> 00:32:28,120
Speaker 1: Rebut the story, Um, I think we could do with

573
00:32:28,160 --> 00:32:31,720
Speaker 1: a little less drama from the White House on a

574
00:32:31,760 --> 00:32:35,640
Speaker 1: lot of things so that we can focus on our agenda,

575
00:32:36,440 --> 00:32:42,360
Speaker 1: which is the deregulations, tax reform, repealing and replacing Obamacare.

576
00:32:42,640 --> 00:32:44,640
Speaker 1: I want to talk about that the first and foremost.

577
00:32:44,680 --> 00:32:46,960
Speaker 1: A lot of attention right now on who the President

578
00:32:46,960 --> 00:32:50,280
Speaker 1: will select to nominate a replace now former FBI Director

579
00:32:50,360 --> 00:32:52,760
Speaker 1: James Comey. Have you spoken with the President about this

580
00:32:52,800 --> 00:32:55,320
Speaker 1: and who would you recommend? Yeah? Actually I have spoken

581
00:32:55,320 --> 00:32:58,480
Speaker 1: with the President about it. I recommended Merrick Garland. M

582
00:32:58,640 --> 00:33:01,520
Speaker 1: Surprising people, Yeah, surprised people, but he had a deep

583
00:33:01,560 --> 00:33:03,720
Speaker 1: background in criminal law. He was the prosecutor in the

584
00:33:03,760 --> 00:33:06,640
Speaker 1: Oklahoma City bombing case. And I think it would make

585
00:33:06,680 --> 00:33:10,160
Speaker 1: it clearer that that President Trump will continue the tradition

586
00:33:10,240 --> 00:33:13,960
Speaker 1: at the f of having an a political professional. Do

587
00:33:14,000 --> 00:33:16,520
Speaker 1: you think he needs some Democrats, some Democratic support on

588
00:33:16,520 --> 00:33:19,920
Speaker 1: whomever he picks in order to legitimize the nominee. Well,

589
00:33:19,920 --> 00:33:22,200
Speaker 1: it would be good to have democratic support. And I

590
00:33:22,240 --> 00:33:25,960
Speaker 1: think if he picks um, someone with a deep background

591
00:33:25,960 --> 00:33:30,480
Speaker 1: in law enforcement, who has no history of political involvement,

592
00:33:31,200 --> 00:33:33,920
Speaker 1: a genuine expert, and the reason I mentioned Garland, he's

593
00:33:33,920 --> 00:33:37,400
Speaker 1: an example of that um, it will serve him well,

594
00:33:37,400 --> 00:33:39,760
Speaker 1: serve the country well, and lead to I think a

595
00:33:39,840 --> 00:33:43,600
Speaker 1: more bipartisan approach before we get to policy. I do

596
00:33:43,760 --> 00:33:46,400
Speaker 1: just want to mention this tweet last week President Trump

597
00:33:46,440 --> 00:33:49,760
Speaker 1: tweeting about the quote unquote, James, come me better, hope

598
00:33:49,800 --> 00:33:51,840
Speaker 1: that there are no tapes of our conversation before he

599
00:33:51,880 --> 00:33:54,400
Speaker 1: starts leading to the press and quote You've expressed confidence

600
00:33:54,680 --> 00:33:58,440
Speaker 1: in the Republican controlled committee investigating this, But should that

601
00:33:58,480 --> 00:34:02,720
Speaker 1: committee have access of those tapes if they do exist? Well,

602
00:34:02,760 --> 00:34:07,360
Speaker 1: sunder Burrd sunder Warner handling the Intelligence Committee investigation they'll

603
00:34:07,480 --> 00:34:10,919
Speaker 1: decide what they need. In the meantime, for the rest

604
00:34:10,960 --> 00:34:13,920
Speaker 1: of us who are not directly involved in I think

605
00:34:13,920 --> 00:34:16,279
Speaker 1: we need to concentrate on what comes next. We need

606
00:34:16,320 --> 00:34:19,759
Speaker 1: to have a great choice for FPI director. I anticipate

607
00:34:19,800 --> 00:34:24,000
Speaker 1: the President will do that and move on. How has

608
00:34:24,080 --> 00:34:26,840
Speaker 1: all of the drama that you described influenced your ability

609
00:34:27,200 --> 00:34:30,400
Speaker 1: to get across healthcare reform? For example? What is the

610
00:34:30,480 --> 00:34:32,319
Speaker 1: timeline on that? What is the update of that? So

611
00:34:32,360 --> 00:34:36,000
Speaker 1: many Republicans across the country, Mr Leader elected a Republican

612
00:34:36,040 --> 00:34:40,560
Speaker 1: controlled Congress to fix healthcare. Yeah, well, we're in intense

613
00:34:40,960 --> 00:34:43,319
Speaker 1: meetings in the Senate. The bill finally passed the House.

614
00:34:43,320 --> 00:34:44,799
Speaker 1: It wasn't easy in the House and it won't be

615
00:34:44,840 --> 00:34:48,640
Speaker 1: any easier in the Senate. Um three days a week,

616
00:34:48,719 --> 00:34:51,560
Speaker 1: we are in intense discussions with virtually all of the

617
00:34:51,560 --> 00:34:54,759
Speaker 1: fifty two members of the Senate, and my goal is

618
00:34:54,800 --> 00:34:57,239
Speaker 1: to get to at least fifty votes to repeal and

619
00:34:57,280 --> 00:35:00,440
Speaker 1: replace Obamacare, and those discussions are underway. Do you have

620
00:35:00,440 --> 00:35:04,040
Speaker 1: a timeline on that? Well, we can't take forever. The

621
00:35:04,280 --> 00:35:10,200
Speaker 1: private health insurance market is collapsing. Insurers are pulling out

622
00:35:10,200 --> 00:35:14,600
Speaker 1: of markets. I don't think we have forever to address this,

623
00:35:14,760 --> 00:35:16,640
Speaker 1: but I'm not going to put a strict timeline on it.

624
00:35:17,200 --> 00:35:20,560
Speaker 1: So many people there's really nothing more personal than health insurance.

625
00:35:20,920 --> 00:35:24,759
Speaker 1: Can you guarantee that whatever reform package is past that

626
00:35:24,880 --> 00:35:27,360
Speaker 1: no one will lose coverage? Well, what we know is

627
00:35:27,400 --> 00:35:29,680
Speaker 1: what we have now is a disaster. It didn't working.

628
00:35:29,719 --> 00:35:33,480
Speaker 1: The changes are collapsing. The status quo is unacceptable. We

629
00:35:33,520 --> 00:35:36,399
Speaker 1: need to do better than the status quo. Another big issue,

630
00:35:36,400 --> 00:35:38,600
Speaker 1: of course, is tax reform. You have said that this

631
00:35:38,719 --> 00:35:42,759
Speaker 1: has to be revenue neutral. The President is proposing a

632
00:35:42,760 --> 00:35:45,680
Speaker 1: massive tax cut. Are it seemingly there there could be

633
00:35:45,719 --> 00:35:48,600
Speaker 1: some tension on visions. What is their tension on the visions?

634
00:35:48,600 --> 00:35:50,719
Speaker 1: And what is the timeline? Are you confident we could

635
00:35:50,760 --> 00:35:53,839
Speaker 1: have comprehensive tax reform by the end of the year. Well,

636
00:35:53,880 --> 00:35:55,480
Speaker 1: it will have to be revenue neutral. We have a

637
00:35:56,640 --> 00:36:00,000
Speaker 1: debt a lot of money. Yeah. We added an enormous

638
00:36:00,000 --> 00:36:02,400
Speaker 1: amount of debt during the Obama years, so we'll have

639
00:36:02,480 --> 00:36:04,719
Speaker 1: to be revenue neutral. I don't want to put a

640
00:36:04,760 --> 00:36:08,760
Speaker 1: strict timeline on it. Uh. The last time tax reform

641
00:36:08,840 --> 00:36:12,439
Speaker 1: is done it took several years, but we certainly want

642
00:36:12,520 --> 00:36:16,600
Speaker 1: to try to complete it. This Congress and make America

643
00:36:16,640 --> 00:36:19,040
Speaker 1: more competitive. That's what it's about. We didn't have one

644
00:36:19,120 --> 00:36:21,520
Speaker 1: year of three percent growth, not one year three percent

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00:36:21,520 --> 00:36:24,680
Speaker 1: growth during all of Obama. One of the most controversial

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Speaker 1: issues of tax reform, of course, has been the border

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00:36:26,880 --> 00:36:29,640
Speaker 1: adjustment tax. I've spoken with a lot of senators in

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Speaker 1: the Senator who seem are against it. What are the

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Speaker 1: chances of the border tax being involved in all this? Well,

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00:36:34,760 --> 00:36:39,400
Speaker 1: it's it's probably wouldn't pass in the Senate. But the

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Speaker 1: way we're trying to go forward is the Secretary of

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00:36:43,160 --> 00:36:45,479
Speaker 1: the Treasury, of the Speaker, myself or trying to reach

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00:36:45,480 --> 00:36:48,440
Speaker 1: an agreement on a proposal that we can all agree

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Speaker 1: to start with, and of course it will start in

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Speaker 1: the House. We haven't reached that agreement yet, but we

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00:36:55,239 --> 00:37:00,000
Speaker 1: will at some point. Border adjustability is a pretty controvert

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00:37:00,040 --> 00:37:03,680
Speaker 1: racial thing in the Senate um, but we'll see what's

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Speaker 1: in the final thing we agree to. Have you spoken

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00:37:05,640 --> 00:37:08,799
Speaker 1: with the President since last night about the news of

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00:37:08,800 --> 00:37:12,400
Speaker 1: the day. I speak with him frequently, And just a

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00:37:12,480 --> 00:37:14,840
Speaker 1: final question, because we hear a lot about this on

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00:37:14,880 --> 00:37:18,359
Speaker 1: Woon murder courses, the need for regulatory reform, particularly on

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Speaker 1: Dot frank, What are the chances of that. What is

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Speaker 1: the side of that, Well, we're doing a lot of

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Speaker 1: regulatory reform. We've done fourteen repealers of Obama. You're regulations

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00:37:27,760 --> 00:37:31,480
Speaker 1: already this year under the Congressional Review Act. I'd love

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00:37:31,520 --> 00:37:34,799
Speaker 1: to revisit Dodd Frank. My community bankers have taken a

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00:37:34,920 --> 00:37:39,400
Speaker 1: hit so far. The Democrats on the Senate Banking Committee,

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00:37:39,440 --> 00:37:41,440
Speaker 1: and there are enough Democrats to keep us from reforming

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00:37:41,480 --> 00:37:44,959
Speaker 1: dot Frank don't seem to want to change it, even

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00:37:44,960 --> 00:37:47,719
Speaker 1: though all their community bankers are complaining about it. I

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00:37:47,719 --> 00:37:49,920
Speaker 1: would love to do it. It It would require some democratic

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00:37:49,960 --> 00:37:53,160
Speaker 1: involvement in order to achieve a statutory change in the Senate.

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Speaker 1: And next week the President is unveiling his budget proposal,

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Speaker 1: and of course there's a lot looming in September, potentially

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00:38:02,040 --> 00:38:04,960
Speaker 1: even a government shutdown. What are you going to be

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Speaker 1: looking for in the president's budget. Well, we generally, no

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00:38:09,960 --> 00:38:12,120
Speaker 1: matter who the president is, generally don't pay a whole

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00:38:12,120 --> 00:38:14,280
Speaker 1: lot of attention to the president budget. But we share

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00:38:14,320 --> 00:38:17,600
Speaker 1: some of his priorities. I think plussing up defense is

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Speaker 1: something almost all Republicans think is important, breaking out of

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Speaker 1: the dollar for dollar every when the Democrats ran everything.

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00:38:25,840 --> 00:38:29,120
Speaker 1: For a dollar defense spending increase, you have a dollar

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Speaker 1: of domestic we've broken out of that already. Um, most

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Speaker 1: of the president's priorities I share some of them, I don't,

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Speaker 1: and we'll we'll work our way through this, and we'll

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Speaker 1: have to be a bipartisan negotiation. The Democrats will not

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Speaker 1: be irrelevant. Thanks for listening to The Bloomberg Savannah's podcast.

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Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or

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00:38:58,800 --> 00:39:03,120
Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom Keene.

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Speaker 1: David Gura is at David Gura. Before the podcast, you

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Speaker 1: can always catch us worldwide. I'm Bloomberg Radio, brought to

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Speaker 1: you by Bank of America. Mary Lynch. Dedicated to bringing

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Speaker 1: our clients insights and solutions to meet the challenges of

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Speaker 1: a transforming world. That's the power of global connections. Mary Lynch,

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Speaker 1: Pierce Feeder and Smith Incorporated Member s I p C.