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tv   Bloomberg Markets Balance of Power  Bloomberg  July 2, 2019 12:00pm-1:00pm EDT

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on the brief today, maria tadeo from brussels on finding new people for the eu's top three positions. kevin cirilli on president trump's outside second-quarter fund-raising, and from detroit, keith not in on north american auto sales. maria, let's talk you in brussels. last time we checked they were still working to come up with the head of the commission, the council, the the ecb. have they made any project -- have they made any progress? maria: we think they are now close to a deal. we have seen a tweet from the head of the european council donald tusk who tweets we are closer to a deal. if our reporting is correct, the package could see kristen lagarde replacing mario draghi as the helm of the european central bank and also a german, the current defense minister
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becoming the head of the european commission. the french get a vague drawl and the germans get a big draw. both of them are women. this will have to be ratified by the european parliament. still weeks to go. not clear if this could fly if it were to be put to a vote. david: wise to warn us. we do not want to get ahead of ourselves. if this comes to pass the way it looks like it might, what does that say about the ecb. it is terribly important to markets all around the world. there were reports we would have a german in that position who could be more conservative. what we know about christine lagarde as the head of the ecb? maria: two things. she is the head of the imap but she is not a central banker. if you look at the european central bank, another former haveician, benny voices quite -- many poisons have questioned whether you are
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looking at a central bank that have become increasingly politicized. if you look at the market reaction, it is a different story because of lagarde gets this -- it means the overhaul is out of the competition, someone hot is out the uber of the competition -- the uber -- maria tadeo reporting from brussels. now we will go to kevin cirilli at the white house. president trump and the rnc had a whopping second quarter. .evin: they made big bucks a record-breaking second quarter for not just the president's reelection campaign but the republican national committee. $54 million in the second quarter raised by president trump's reelection committee. rnc, moren by the than $100 million war chest the president has at his disposal heading into the 2020 cycle.
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we are still getting the numbers from the top-tier democratic presidential candidates. raising $24.8 million. that is a solid number in terms of a political unknown just a couple of months ago, now being able to have money that will fuel his campaign through the iowa caucus. senator bernie sanders says he is raised $18 million, relying on small dollar donations. we do not know how much money other candidates such as elizabeth warren or kamala harris has raised but the harris campaign has put out they've raised big bucks following her strong showing in the first democratic presidential debate. joe biden has says he has raised about 20 million in this quarter but we've not seen that officially. david: it is remarkable to see pete buttigieg repeating bernie -- beating bernie sanders handily. $100 million plus did not just
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go to donald trump the candidate, it was split 50-50 between donald trump and the rnc. the dnc has been falling behind and that could have real effects on their ability to get out the vote and do all of the infrastructure things they need to do. kevin: precisely. sources at the dnc have drawn that contrast with the rns the in terms of how the chairwoman has inherited reince priebus fund-raising apparatus and build up hornet. -- and build upon it. chairman perez has other things he has to do, including remaking the cyber infrastructure of the dn's the. they were subject to frequent cyberattacks. the relationship between the president's campaign and the rnc continues to be in lockstep. 2016is something he had in and something he has heading into this cycle as well. david: thank you for that driven
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reporting from a beautiful white house. now let's go to keep in detroit. we are getting auto sales numbers and it looks to be a surprise that ram truck is catching up over four. that is what everyone is talking about in detroit. the ram is nipping at the wheels of the f series which has been the top-selling vehicle in america for 37 years. -- weer see in each it never see any change in leadership and all of a sudden the ram has a monster month, selling 68,000, just a few thousand behind what the f series does. the ram, which was redesigned and has this giant touchscreen in the dashboard everyone is while about is tearing it up. david: good news for fiat chrysler with respect to its ram truck. do have any indication of how they are doing it in china?
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in the past. chrysler has lagged behind in china where gm has gotten out in front. keith: chrysler continues to lag in china. gm is the leader. ford has been declining in china. the best thing in china for detroit is the luxury brands, cadillac and lincoln, which seems to be faring well. otherwise china has become a challenge. david: thank you so much. now let's get a check on the markets with abigail doolittle. abigial: this tuesday is shaping up interesting. the average is slipping between small gains and losses. you can see small losses for the dow, nasdaq, and the s&p 500. as an p5 hundred and nasdaq on paste this now multi-day -- on -- we seeap multi-day
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that one culprit to the sense of risk off on the day underperforming in a vague way, oil down 3.5%. there does not appear to be a clear impetus outside the fact that some investors may be concerned about the possibility that global demand could slow if -- doese war is not weigh on the global economy. investors seem to be taking profit out of that risk asset. if we take a look at the risk -- at the s&p 500, we're looking at a rally. ,ast week we saw the s&p 500 facebook tripping around neutral. this was last friday during the beginning of the g20 but ahead of president trump's meeting in japan. on monday the big jump on the open. investors cheering that trade truce. not holding on to all of the gains of the s&p 500 did finish higher. it'll be interesting does he whether or not the bulls can pull forward.
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, noting on the s&p 500 surprisingly since oil is down more than 3%, we see all of these big losers within the energy sector. it is the worst sector by a wide margin. resourcesl, emg weighing on the s&p 500. we have had a bit of a reversal. the 10 year yield earlier around even, but look at this. a big rally for bonds as oil is dropping off. bond traders not liking the fact that the less liquid oil trading lower. investors are seeking the safety of those bonds. back below that 2%. everyone is wedding for that all-important jobs report on friday to see whether that might turn this picture around. david: in the meantime people are loving those bonds. coming up, europe seeks new leadership. we talk with the london school of economics about who is on deck and what it could mean for europe's economy.
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that is next and this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. we turn to mark crumpton for first word news. mark: opec and its allies have confirmed their decision to extend the output cuts to march of 2020. iran is also trying to find ways to export oil amid sanctions. iran's oil minister spoke to bloomberg in vienna after the move to extend production cuts. >> no doubt it has a negative impact on our economy.
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resist not mean we don't against this unfair, illegal sanction against iran from the united states. mark: saudi arabia also weighed in. the saudi's will continue to take on the majority of the cuts , with a delicate saying production will remain below 10 million. russia wants all sides in the iran nuclear agreement to do their part. the foreign minister is urging iran to carry out its obligation. iran and a knowledge is it has stockpiled more enriched and radium that it is -- enriched uranium that it is supposed to. the russian minister also says europe should offer iran economic relief from sanctions. people have died after a fire erupted on a russian summary. the vessel was undergoing performance tests when the blaze broke out. the ministry did not say how many crewmembers were on board
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or if there were any survivors. tanks on trump once the mall in washington for the fourth of july celebration and it looks like he has them. an associated press photographer spotted several armored vehicles in a d.c. railyard. a military official said tanks were being transported from fort stewart in georgia. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? david: europe's leaders continue to negotiate over the first ever change out at the same time of their top three leaders. we welcome lorenzo condone you -- lorenzo codogno, coming to us today from london. thank you for being with us. let's start with the reporting we have heard. we just heard from rhea taddeo in brussels that nothing is done yet but they are getting closer and it may be christine lagarde
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is the new head of the ecb. you know anything about that, and what would it mean? lorenzo: i know her and certainly i very much appreciate what she has done, both as a french finance minister and as a leader at the imf. she did a good job. i think certainly, from a communication point of view, she will be up to the job and probably doing an excellent job in the future. she has also plenty of experience in terms of policymaking, which is certainly useful in that position. , i have challenging bit to say replacing mario draghi will be challenging for anyone. from her point of view, i would say the most challenging bit will be to build up a team at the ecb that replaces the team that is about to expire.
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many members of the executive committee of the ecb are going to step down soon or have already stepped down from the committee. task would be to rebuild the team at the ecb. david: she is clearly a respected politician. a minister of finance. she has done well at the imf. she was a lawyer before that. she is not a trained economist. we have a chairman of the fed that is also -- do we have any concerns she does not have a sound economics background, unlike mario draghi? lorenzo: that is always a concern, but in today's world of central banking, communication is probably the key aspect. certainly she has a very good skill in that regard. having said that, we have seen jay powell in the states and other people around the world.
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these days, communication skills might have a premium on economic experience. again, she needs to find a way to build up a strong economic team around her. david: one of the challenges she will have or whoever takes over the job will be what to do with monetary policy in the european union. we had mario draghi signal they are willing to cut further. there are reports from bloomberg that people at the ecb are saying not july or maybe september. i will put up a chart that shows where the market is. the purple line indicates that right now people think we are looking at 1.7 times attend basis point cut on october of 2019. if you go for 12 months, it is over two 10 point cuts. is that justified by what you see in the economy in europe today? lorenzo: the global economy is
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slowing fast. clearly the eurozone is no exception. i have to say that in recent , the deterioration is coming from the u.s. more than the eurozone. however the eurozone is more vulnerable, given there is not much policy, there are not many policy instruments that can be activated to support the economy. on the monetary side, what the ecb can do is limited despite mario draghi having tried to convince people that the ecb has plenty of tools that can be used if there is a need for that. ratesling is that cutting is not going to be particularly effective, keeping in mind rates are already in negative territory and there is a limit to how far they can go in terms of negative rates.
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more options could be -- could emerge in terms of reactivating the asset purchase program. maybe not immediately, because immediately would be not they just zeroen the net asset purchase at the beginning of this year, but over time that is the way to go in order to provide extra stimulus. do not forget the ecb has been created over the past few years. we might see other ways to stimulate the economy. thatly, there is no doubt whoever leads the ecb in the future will have to find the support of the fiscal side. without the support from the fiscal side, the monetary policy will not be able to do much in the future. david: let's turn your home country of italy. there was an issue with that european union about getting the
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budget to the 2% target on the deficit. i will put up a chart that indicates where it is now. they are taking it down below 2%. what did the italians do to get that number down? lorenzo: the cabinet ministers yesterday night approved a small package. an updating of the budget to take into account items, spending items were lower than expected. income and the region of the pension system and it up -- ended up less expensive than originally expected, which is good news, and is a structural improvement. government time, the has produced savings, which are temporary. some amnesty and some bits and pieces.
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the good news is that probably italy will hit the 2% target in the current year. the bad news is what we are seeing so far does not provide any kind of support or improvement for the outlook from 2020 onwards. david: is their relationship between what you just described, non-structural changes in the budget, and what has gone on with italian government bonds. there was a big buy, larger than bunds, larger than french bonds. what is causing that? lorenzo: increasing confidence there will be in agreement with european authorities, in particular the commission. there is some good will coming from the italian government, and certainly a good step in the right direction. whether that is sufficient is yet to be seen, but at this stage the probability of a deal
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is relatively high. if that is the case, at least for now, probably not forever because they could probably come back in september, at least for now the situation is settled and that is why financial markets are happy about that. at least we have avoided another row between the commission and the italian government. david: going back to the first discussion of the ecb, you are saying it is not so much the interest rate at the possibility of buying assets. if they did that, what sort of assistance with a give the italian government if the at sign were interested in buying bonds. lorenzo: that is tricky. the more you buy the more you enter into territory which is no longer a monetary area. effectively, the ecb will have to come up with a broad sense of options, including reactivating
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the asset purchase program. to my mind, that looks the most effective tool right now. clearly with italy in such a difficult position, that might prove controversial, particularly in other capitals. i do not see any other solutions. inevitably, the ecb will have to buy italian paper together with paper from other countries. of thelorenzo codogno attack -- of the london school of economics. thank you for being with us. coming up, 90 is in the crosshairs for its bessie ross -- for its bessie ross -- for its bessie ross flag shoes. that is next. ♪
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david: you're watching "balance of power." time for the stock of the hour. nike has pulled a special edition shoe with the betsy ross flag following colin
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kaepernick's objection to the image. the former nfl player so the design was offensive due to a connection to slavery. we're joined by taylor riggs. i never forgot -- i never thought of the flag is connected to slavery, but i guess there were slaves when it was made. taylor: they had the betsy ross flag on the back of the shoe and a lot of people said this flag was prevalent during a time when slavery was predominate in the united states. nike pulled the shoes off the self, the arizona governor saying political correctness has gone too far. if you're going to take the shoes off the shelf, we will deny you the tax incentive. you and i could debate the effectiveness of state tax incentives. i think we will go over the fundamentals of nike and why this apparel is so important to them. it is a big driver of revenue.
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revenue growth for the footwear segment is 8% or 9%. high single digits for a mature company. will,sponsorships, if you are very important to them. they have the air jordan brand, they have women's soccer, which let's not forget women's soccer place today. david: by the way, a big game. that has match at 3:00 about $1 billion in revenue. then the colin kaepernick controversy, which nike is also familiar with. david: we will see whether it hurts the business or not. coming up, governor steve bullock of montana is running for president. we talk about him about why he was not in the debate stage last week. this is bloomberg. ♪
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committee has escalated efforts to think president trump's tax returns. they asked the treasury department to turn over six years of mr. trump's personal and business tax returns. the lawsuit comes after treasury secretary steven mnuchin and rejected a written request and subpoena for the returns. the u.s. has proposed more tariffs on goods coming from the european union. the trade representative's office says the u.s. will impose tariffs on nearly $4 billion worth of goods in retaliation for eu subsidies for airbus. the ustr says subsidies bring 11 billion dollars in economic harm to the u.s. annually. the eu is waging a similar measure over subsidies for boeing. a new law in make it easier to bring workplace sexual harassment claims in court. the law is the third of its kind, following in the footsteps of california and delaware. few hours from now, it is the
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united states versus england in the women's world cup semifinals. semifinal is tomorrow between sweden and the netherlands. the winners face-off on sunday. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: thanks very much, mark. governor steve bullock has won election twice to the office of the governor of montana, and he wants to be president, but he did not qualify for the first round of debates, which caused some to question the grounds which excluded him. he is with us. are you going to be out there for the debate in detroit? i am excited to havet
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qualified for the second debate, looking forward to being on stage. missing from that stage was someone who won in a trump state, who has governed with a majority republican legislature to get progressive things done, and has led the fight on dark money. while i was not on that debate stage, i was in iowa and new hampshire during that time. i have qualified for the second debate. david: you have something of a different background than people on the stage there. what would you say that would be different from what they said, what are the specific messages you want to get across that would be different from what we heard last week? bullock: based on the folks i have talked to along the way, they are looking for who can be trump, who understands what the average voter's life is like, and who can get something done.
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we need to make sure that we can both bring out democrats but when back places we lost. win in places like michigan, wisconsin, pennsylvania, we will end up in the same place. that are have debates disconnected from the problems that families face in their everyday lives. we have to have answers for those americans. , running in i do montana, and also in governing. the things that struck us, and we have asked democrats about this. we had a discussion of providing health care to people who are undocumented coming from the southern border. for most americans, it doesn't affect them directly. one of the strengths donald trump had as a candidate, he was talking to people and saying -- this is how your life will be better. what can you do to the people of
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wisconsin and michigan, to tell them their life will be better? real wages have not increased. when i was growing up in the 1970's, 90% of 30-year-olds were doing better than their parents. today it is only half. we have to recognize, what president trump has done, he said that he would help everyone out along the way but folks are really not getting the gains. trillion dollar stock buybacks. that did not go to most folks. can actually have a better life economically. we have to have policies tailored to that. that is what i've done in montana. we led the nation in growth in the middle is. david: what are the issues that worked well for democrats last november was health care. the issues that worked well for democrats last november was health care. is that a cornerstone of what
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the democratic campaign should be, and if so, what is the message? i knew a teacher who had to take a second job because her insulin costs were $500 a month, a third of her salary. health care should not depend on the size of your paycheck. it should be a right. but the challenges we face are accessing cost. as governor of montana, we have 100,000 morecaid, montanans got coverage, we lowered cost a role in the way. we have to look at what i proposed, a public option that people can buy into, negotiating drug prices. the federal government is the biggest purchaser of drugs. we cannot even negotiate. invest in some of the preventative health areas. work to get rid of surprise medical billing, out-of-network charges. i would not end up disrupting up in having aon folks
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full response of health care to get there. david: one area where you may have a different point of view from other democrats is the area of energy and climate. in having a full response of health care to get there. the keystone xl pipeline that goes through montana. what is your basic energy and climate policy? gov. bullock: on climate change, look, we have to take durable action. i have heard from the current secretary of interior who says he doesn't loosely. from someone who had the second worst fire in our history in the west, where we have fire seasons look, we have to take durable action. now 78 days longer than years
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before, we have to take action. i would rejoin paris immediately. now 78 days longer than years before, we have to take action. i would rejoin paris immediately. not even the auto industry was asked about the removal of the fuel industry standards. now 78 days longer than years before, we have to take action. i would rejoin paris immediately. not even the auto industry was asked about the removal of the fuel industry standards. we need to be invested at the federal level in opportunities to make sure from our ag side, and the most antiquated piece of machinery we have, the side, and the most antiquated piece of machinery we have, the grid, that we can transition to that renewable energy economy and get to know and zero -- net zero emissions. we can get there sooner. we have doubled our wind in montana, quadrupled our solar. as we go through this transition, we also have to recognize their communities and individuals who have spent their whole lives powering our country. we cannot leave them behind as we go to a clean energy economy. david: let me ask you the most practical question. 23 candidates from the democrats. how are you going to break out from the pack? you are the governor of a state, which counts, but what is the one thing that you are going to do that says i'm now going to pay attention to steve bullock? fieldullock: even in a this big, i am literally the only one who won a trump state.
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in order to win 2020, we have to win back some of those places. on the ballot in 2016, he took montana by 20. i won by four. only one that has passed progressive policies through a republican legislature. not only do we have to win but we have to get government working again. i have seen it before because i personally done it. stage, asings to the out of washington dc, everyone is judged by your speech as opposed to what you accomplished. i have a lot i can show through not only what i've accomplished, but how i have bridged these divides to get government working again. david: appreciate your time, governor. that is montana governor steve bullock. geopolitics are dominating the news from hong kong to north korea to iran.
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we speak to the eurasia group founder ian bremmer. that is next. this is bloomberg. ♪
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david: you are watching "balance of power." i'm david westin. were coveringwe dramatic developments in hong kong where right please moved in your gas to into clear the legislative offices and around areas. lamw hours later, carrie condemn the protesters actions. the use of violence and vandalism by protesters who stormed into the legislative council building over a period of time. so this is something that we becauseeriously condemn
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nothing is more important than the rule of law and hong kong. welcome the bremmer, founder and president of the eurasia group. bremmer, founder and president of the eurasia group. welcome for our conversation in chief. we see the video, very dramatic. what does it signify? ian: let's first recognize we have had millions on the streets of hong kong and virtually no civil disobedience. they were allowed to demonstrate, it was peaceful. you didn't see fighting against the local police. the police had used some rubber bullets against people, some injuries, but generally, extraordinarily clean and safe. now yesterday, that is no longer true. it will undermine support for the demonstrators to a degree. everyone will condemn those acts. it gives the government with
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beijing's backing the ability to crack down. but the pressure on carrie lam , evenll significant though she has backed away from law.xtradition she has not given it up, she has just delayed it. she has not stepped down. law. she has not given itthe chineset forced her to at this point but that is what this is moving toward. i would be surprised if she were still there at the end of the year. ae biggest point is this is major political loss for the president of china xi jinping. it comes at a time where he is on the back foot, under more pressure from the united states, makes it harder for him to offer americans, these to show he is a strong domestic player in china. david: so he may harden his position because he does not want to appear weak to his people. where does the pressure, at him from? is it within his own communist party within china? the elites within the
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commonest party saying he is making mistakes. we are came out and said going to be the dominant power, we are going to lead ai in the world in 2030, there were a lot of people high up who were saying, do we want this level of attention on us? the americans are going to fight us now. i have heard from senior chinese officials who normally would never question the chinese president, saying i think we made a mistake there. we should have done the same things but we should not be out there publicly saying it. , lot of marketing going on belt and road, the davos speech. the chinese historically, we are small, poor, don't pay attention to us. now trump is paying a lot of attention and it has led to 25% tariffs. david: president xi may have suffered a setback in hong kong. does he have an advantage in japan? i stared down donald trump.
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for the times being, we will deal with huawei , and i didn't have to give him anything. ian: they were relieved coming out of the meeting. this could have gotten worse. people advising xi jinping, maybe even the vice chair could've lost their jobs, had the meeting gone badly. you could see the palpable teamf on xi jinping's coming out of that meeting with donald trump in osaka. but they did not get very much. behind the scenes, xi jinping had helped to facilitate the meeting between trump and kim jong-un in north korea. xi named the trip to pyongyang, the first time there as president. north korea was on the agenda for the phone call between him and trump that came right after. they have created some linkage, which is useful for them. while they have not increased
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tariffs, they have not taken off any either. there is the cease-fire, but the trade war, the to the extent that one was on, is still there. that technology war is still on. the markets should not be coming saying, now we see how a deal actually gets cut. i don't think we are there. you took us to theto due military zone between trump and kim jong-un. what does trump see their? tactical opportunities, more for himself and for the united states. when those things coincide, so much the better. korea, hee of north has been willing to meet, to provide the symbolism and
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legitimacy for kim jong-un and his police state regime, that no other president in history would have done. that has led to some movement. we do now have an informal freeze for freeze. nothing has been signed that we are not doing military exercises with the south koreans, and the north koreans are not testing long-range missiles or nuclear weapons. can we move from there to inspectors coming in, freeze of nuclear development, with the development, icbm development, and some relief for sanctions? john bolton would say absolutely not. while donald trump was a north korean territory, john bolton was in mongolia. it is not clear to me that he is the one driving the conversation. i think there is a greater likelihood we see a movement toward real, substantive negotiations that will not denuclearize north korea but will reduce the tensions on the peninsula.
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at the same time, kim jong-un feels legitimized. he is not a pariah leader anymore. invited to the white house -- even more so. will be bin salman hosting the g20 in saudi arabia next year. president trump has done a lot of work to normalize that relationship with mbs and the rest of the world. after the jamal khashoggi murder, he was treated as a bit of a pariah for some time. david: it is like both sides are playing for time. is there a clock ticking for president trump, the 2020 election, and can he go in without concrete something out of china, north korea, even a nuclear freeze? would argueand he that he is already made more progress in north korea that others have. about theed me
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pressure of getting progress done before 2020, it is more a north korea and the u.s. the north koreans understand they will never have an opportunity that has a president who cares not about human rights abuses on the ground. it doesn't even enter the lack of you very. the chinese, it's a different story. -- enter the vocabulary. the chinese think donald trump is volatile. you could cut a deal but you could also get in trouble. there is also the possibility that trump does not want a deal with china right now. if you are going to cut a deal that boosts the markets, when you want that running into the 2020 elections, as opposed to a year before? to the extent he is being advised tactically by people around him that care about 20, that is entering the conversation. david: the ultimate october surprise. coming up, we will talk about the conflict with the u.s. and iran, and what it means for the
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region. live from new york, this is bloomberg. ♪
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david: this is "balance of power" on bloomberg television. i'm david westin. iran confirm its in violation of its agreement for low-enriched uranium. ian bremmer of the eurasia group is still with us. step?portant is this we heard officially from iran yesterday, they have gone past the limit. ian: it is important. now officially in breach of the agreement. the americans backed out of the agreement over a year ago. the iranians waited over a year to take this step. you asked me in the last segment, what about the north koreans and a chinese, are they waiting for 2020? iran was waiting for 2020.
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they were hoping to play this out, maybe a democrat wins, we can get back to the jcpoa deal. americans were not only content to pull out of the deal, but we also decided to squeeze all of their oil. not let any country's good oil out of iran. now the economy is shrinking by maybe six, 10% this year. they felt like they needed to take steps to force the europeans to put pressure on normalizing relations with iran. that is where we are. david: can the united states actually cut off the oil? you have india and other people that would like to cheat on that. ian: it would be surprised how much influence the americans have, even with the chinese, who are saying we do not want our banks to be hit by american sanctions. we will not be able to do much business with iran going forward. some oil coming out but a small fraction of where they were before. the americans offered some relief to some of the countries
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to allow them for a few months but now it is close to a dribble. were: two months ago, we concerned about a shooting war in the gulf. has that risk diminished? ian: it has. maybe the perception of the risk has. trump never wanted to get involved in a shooting war. the fact the americans decided not to take kinetic response to a $130 million grown being shot tankershe sky, four being hit almost certainly by the iranians, and now bridging the iranian nuclear deal. and is saying they are playing with fire. almost all the sanctions that we can apply we are applying. we are also starting to hit them with ciber, going after the iranian revolutionary guard, some of their defense facilities. that is meaningful. the potential that creates an escalation that gets you to military action is not zero, but
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the iranians are clear. they do not want to take any escrow story -- eskimo toy step that could risk the americans hitting them. there is another country in the region, saudi arabia. to what extent are we solidifying a lockstep approach with saudi arabia over there? ian: pretty close. go saudi's will not want to military against iran without american support. the saudi's are now getting hit houthi missiles. they have led to deaths on the ground. the saudi's have complained about it. they had not taken military action. unless the americans are going in, you are not going to see a major power war against the iranians. also let's keep in mind, oil prices are comparatively low. people are more concerned about chinese demand not being as i than they are about libya,
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venezuela, and iran. in that environment, the u.s. can keep pressing. david: such a privilege to have you here. thanks to ian bremmer. coming up thursday night, complete coverage of the boston pops fourth of july concert and fireworks spectacular. that is starting at 8:00 eastern time. this is bloomberg. ♪ ♪
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use a little, pay a little. use a lot, just switch to unlimited. get $400 back when you buy the new lg g8. call, visit or click today. mark: i'm mark crumpton with bloomberg first word news. while en route to new hampshire, vice president pence's plane was diverted in flight and return to washington.
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a spokesperson released a statement saying there was no cause for alarm. a white house official says the vice president is now in the west wing. germany's federal office of justice has find facebook. officials say the social media giant violated germany's network enforcement act. the company allegedly gave incomplete information regarding complaints of unlawful content on the site. facebook can appeal the fine. european union leaders may make imf managing director christine lagarde the next president of the european central bank. that's according to officials briefed on the talks. name is one of the key pieces in the slate of legislative candidates. there is officials have been wrangling over the job since sunday. it looks like nasa successfully tested the emergency abort system of the orion spacecraft. the ride is supposed to take astronauts back to the moon. less than a minute after launch, ryan

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