Skip to main content

tv   Bloomberg Markets The Trump Economy  Bloomberg  August 18, 2017 1:00pm-2:00pm EDT

1:00 pm
shanker, i want to start with you, craig. get us up-to-date with what we know. newe are reports from the york times that steve bannon is leaving but there are conflicting reports about what gave rise to this. >> a personnel move is only donald trump can do one. he seems to be saying to the new york times, that bannon is on his way out. the timing and circumstances are unclear. we've seen this before with trump. he is seen as being reluctant to fire people, even those who have let him down and ban and then it seems to be on his way out in a weird state of limbo. david: something else we have seen before, it is not clear whether he is jumping or he is being pushed. here were also reports that turned in his resignation a couple weeks ago. >> exactly. we have been told reliably this week that the president was not
1:01 pm
particularly unhappy with interviewsmments in this week where he defended trump's remarks on the charlottesville violence and stood behind trump there. the president was not unhappy about that. we are in a hall of mirrors. we are hoping over the next bit weekend sorted out. i think at some point by the end of the day we without -- we will have a clearer picture. david: let's turn to you now, give us the political lay of the land. who is winning and who is losing if this is true that mr. bannon is out? >> it is not clear to me that this will mean a massive change in the white house. steve bannon represented -- he was an avatar of the movement that gave rise to donald trump. that boosted him in the primary. ofjoined them in february 2016. everything the trump had represented, this nationalist strain, skepticism of global
1:02 pm
elite. of immigration, of trade. bannon ran the website, breitbart, that fueled that movement in a substantial way and it is no coincidence that the two ended up together. president trump had that instinct before banning came on. it is not clear to me that the president will drastically shift course. the loser here, if bannon is out , would be anyone who tries to fly too close to the sun or appears to be flying too close to the sun. the president does not like it when his staffers get credit for things that happen. benin has been in the news in a prominent way. bannon has been in the news in a prominent way and trump does not like that. david: two other people that are identified with mr. bannon, gorka and miller. do you know anything about their status? >> not to my mind.
1:03 pm
i don't know anything that either of them have anything to do with the news we heard right now. these individuals, as you indicated are part of the same strain of thinking. stephen miller used to work for jeff sessions, a staunch opponent on immigration legal and illegal. gorka has been a spokesman on national security issues. i've not seen or heard any indication that these two are going to be going. there will be attention on whether the question -- whether the president will try to eliminate other individuals associated with that. i don't think he will. when you tend to focus on individuals and personalities, let's talk about policies. is this likely to change any policy making in the white house? and the other is the relationship between the president and other republicans on the hill.
1:04 pm
we already had senators going after the president yesterday. there were a number of people on the democratic side and some on the republican side that thought that bannon needed to go. but in terms of changing policy, i think we tend to overstate what this means or donald trump and his policymaking. donald trump thinks like steve bannon. they echo each other. as long as steve bannon has access to a telephone, they will talk all the time. ultimately, this probably won't have a lot of effect on policymaking itself. i think it signals greater dignity -- discipline on the part of the chief of staff, that he is been able to impose on this white house. but he is not shown an ability to do that with the president and that is the key thing. david: exactly, marty, how
1:05 pm
important is the fact that it appears general kelly, may now be able to assert his authority in the white house? he couldn't do it standing there at the news conference but he might have behind the scenes?: marty: that is what the markets are saying. kelly in terms of imposing give some, it will peace of mind to international allies who were worried about steve bannon and loans. david: so craig, shame on us for getting five markets into this without -- five minutes into this without talking about the markets. we do not know this is confirmed that reports coming out that steve bannon is out. yesterday we saw the markets go up when the white house when out and said we were not getting rid of gary cohn. what is this mean for him after reports of fighting daily?
1:06 pm
does this make it more likely that gary cohn will get his way? gary cohn might be popping a bottle of champagne. gary cohn and steve bannon represent the two halves of the white house and the two halves of donald trump's mind. economics and the grassroots movement. this would be a reassuring sign to the market in the way of cohn staying. the white house is unstable right now. bob corker used those words. if bannon goes it would be seen as removing a major force of instability and putting the power back in the hands of people like gary cohn and general kelly who are viewed as people trying to right the ship. , marty, to conclude, we have to come back to questions of donald trump the man. who he is, his character. it almost doesn't matter who he has around him -- will donald
1:07 pm
trump really turn over a new leaf? marty: as we have seen time and again when you inc. it is safe to come -- go into the water, you get bitten. outwardly you would think this would mean there is a shift and a discipline in the white house but as tuesday showed, he had his prepared statement in his pocket and he went off the rails , and many peoples view. numbers something that -- no one in the white house wanted. i would not hold out hope that this would shift donald trump in a more traditional presidential role. david: one other aspect of this -- the ability to recruit people to work in the white house. there were reports that it was getting difficult. that this could help them in their recruiting efforts to attract top talent?
1:08 pm
they are still way understaffed. if the white house is seen as shifting course as the result of an and's departure -- mr. bannon's departure. i don't see it is likely. there's been so much turnover, extraordinary to me. in and of itself, that will give anyone who wants to work their pause. the chief of staff fired, the press secretary, fired, the national security advisor out, now you have the chief strategist, likely to be out. , theould you not worry president's running of the show -- wouldmperament potentially impacting negatively if you were there. in terms of recruitment, a lot needs to be seen in terms of a shift of what the way the white house functions. tother winner, in addition craig mentioning gary cohn and
1:09 pm
john kelly, is h.r. mcmaster. he and steve bannon had been engaged in a feud mostly behind the scenes and orchestrated by allies. there were even reports of russian hackers intervening to try to get mcmaster fired. an extraordinary thing and a series of extraordinary pieces of news. that is where we are. david: extraordinary new seems to come with this administration. marty, i want you to have the last word. this happening in late august. the president cleaning house before congress comes back in september. he is a long list of things he wants to get done in september. this might be an opportune time to do it. other presidents have done it in the past. you and i were around for that. smart? >> they could be smart if it was strategic. donaldstion is, does really get into the policy implications of what is
1:10 pm
happening on the hill? he is not shown inclination to do that. we have a debt ceiling, a budget that has to get done in september, and a more organized white house is going to be helpful. we will have to see whether the president himself wants to do the things that can get those things done. he is not shown an ability to do that yet. david: many thanks to executive editor craig gordon, marty shanker. thank you all very much for joining us from washington. now let's get perspective from brad. he has been in the white house. he was deputy assistant to president george w. bush and joins us on the phone from delaware. thank you for joining us. >> my pleasure. david: give us a sense from inside the white house how seismic shift this is? >> the last month has been seismic. the chief of staff leaving, the press secretary and now the
1:11 pm
chief strategist. that is a pretty severe shakeup. i think it is right to do it now in the summer and hit the ground running after labor day. 2017 must be a year of action for the president. on major have a win promises that he delivered to the american people on taxes. one of your guests just mentioned, the looming debt crisis. we have to raise the ceiling, approve a budget -- there are a lot of things that need to be done. the president has to have the team around him by labor day in order to accomplish these goals. david: to what extent do you think, brad, this is a reflection of the man the president of the united dates, shifting from a campaigner to a the president of the united states. he campaigned as a bomb thrower. he promised he would drain the swamp. now he is in the swamp.
1:12 pm
mr. bannon was clearly of that ilk -- he wanted to change things and ruffle feathers. is this possibly a redirection of the president to say i will have to work with people to get done what i want to get done? >> absolutely. there is a difference between campaigning in governing. the people who get you to the white house are not necessarily those you need a around you when you get there. that is the conundrum that candidates have. they have a sense of loyalty to the people who got them to the white house. that is not necessarily the best people you need around you to govern. governing and campaigning is completely different and you need seasoned people who know washington. it doesn't mean they're members of the swamp but they can tell you how to clean it out. david: brad, we have breaking news. saying,the white house today is steve bannon's last day
1:13 pm
and they are grateful for his service. steve bannon is no longer working in the white house. if you are helping the president now putting his team back together -- in the summer months, before congress comes back, what would be your first priority? a make sure that i have consolidated senior staff that controle same page and of the president's schedule and what it will look like in the fall and what will the message be an stick. stick to that. the time is short and you have to make the best of what you have. a lot of it is controlled by forces beyond our control. you have to influence and get involved and make sure you are on top of things so you can push your agenda through. david: you have been in a senior position.
1:14 pm
what does this mean for the people around steve bannon? mr. gorka, mr. miller, who were associated with the bannon, does this mean that in all likelihood they will be taking a hard look at whether those individuals should be staying? >> that remains to be seen but certainly the chief of staff is getting control of the people around the president and those people who are responsible to im and the chief of staff so don't think this might be the only personnel you see go. we don't have much time to get serveconfident people to and fill these roles quickly and hit the ground running after labor day. david: i want to read the official statement on steve bannon. " general kelly and steve bannon have mutually agreed today that this would be steve's last day. we are grateful for his service and wish him the best." this was in an emailed statement just out now.
1:15 pm
john kelly and steve bannon have agreed together. the role of a properly functioning chief of staff. we now have general kelly and their clearly trying to assert his authority. he get hisl is it arms around the president's schedule and his staff? >> it is critical. that is the measure of his success -- to make every minute count of his time. to make sure his message reaches objectives and goals. that is really the success of a president. not only here and now before history. a president is only as good at as his ability to get things done. and he has to get things done. you have to have a sound record. doeral kelly knows what to but a good chief of staff is one that has very tight control of the president's schedule and a that complements
1:16 pm
that schedule. if you are back in the white house today, what would you do to get congress on your side? we are seeing a number of republicans who are defecting? who are distancing themselves from this president. a lot of things he wants to get done require congress help. what a george w. bush do to make sure he had republicans on the hill working with him? >> we kept constant contact and messaging with the congress. it was a symbiotic relationship where they were constantly being as to what informed the president's agenda was and when he was hoping to get things done so that we complemented the legislative calendar. if i were advising the president, i would say, let's
1:17 pm
open up camp david and spend three or four weeks with meetings with republicans and democrats, senior leadership and members of committees and get them on board for a robust fall agenda. david: thank you so much for being with us today. thes now a principal at 1600 group in washington dc. let's get a check on markets. abigail? >> we are certainly seeing a market reaction to the news that steve bannon is out as the white house chief strategist. a mutually decided agreement between the white house and steve bannon. the nasdaq,action, the dow, and the s&p 500 all trading higher. after yesterday's selloff, the fact that the averages are higher tells us there is a risk on reaction.
1:18 pm
let's take a look at the s&p 500 to see what was happening. for much of the morning the s&p 500 had been lower and right around 11:30 a.m. there was a headline from axial saying president trump was likely to announce what was next for steve bannon as chief strategist of the white house. the stock market took a leg higher. when the new york times put out a report that trump had told aides that bannon was out, that s&p took a big leg lower. what makes this remarkable is this -- this is not the first shakeup at the white house relative to staff. despite this we have a risk on reaction with steve bannon being divisive or thought to be divisive to the white house. a risk on reaction. the most remarkable reaction might be in commodities. oil on an intraday basis, that had been flat today, but at the time of headlines, there was a massive spike higher.
1:19 pm
the commodity strategist told me that one hedge fund person that he knows told him that this has to do with that. telling us that oil traders think this is a risk on, decision, positive for risk on growth. very interesting. if we take a look at the 10 year yield, the bloomberg dollar index, we see that it is confirmed. risk on. 10 year yield on up to basis points. bonds are selling off. there is not a risk haven appetite there. typically that would put the index higher but we have a contradiction there. the bloomberg dollar index down slightly. the fearhat vix -- index, down 11%. straight has been two days of this. thank you so much, abigail. now let's talk to bob,.
1:20 pm
is the chief strategist of john kerry's presidential campaign and he joins us on the telephone. great to have you, bob. >> glad to be here, david. like: you know politics few others. give us the political take on what is going on here, not so much partisan but politics? >> people around the president determined that bannon was a huge problem and had to go. it was hard for the president to do it. in fact, it would have been better if it happened before last weekend because i think annan stoked -- steve bannon stoked the fires that led the resident to -- lead the president to make the statements he did. you cannot have power centers in the white house that are running their own priorities and issues. i can see what the markets are getting better. we are have -- we have bigger deadlines coming up. are we going to kill the
1:21 pm
children's health insurance program which covers millions of kids. bannon would've been on the wrong side of these issues. also trade. people feel now that maybe the administration will go forward in a rational way. i have my own doubts. presidentver seen a like this and i am not sure removing steve bannon solves the problem. david: we will find out soon enough. you raise two issues. one is process. organized andre the other is substance, what is the substance. how much is the process? when we talk about the news of steve bannon, how much is the news of general kelly? >> i think the news affects the markets because people think there is maybe an adult in charge. and a series of rational decisions may be made about these big economic choices that are coming up. secondly i think the markets probably feel and a lot of people probably feel that there is now some hope that the
1:22 pm
president will become less extreme, lessss out there, less provocative. which is all destabilizing. i am not sure about that. we will find out. the test years trump, not steve bannon. david: well put. good to have you here, bob. he has been on so many campaigns we cannot list them all. great to have him. editor,en, bloomberg and author of the definitive look on steve bannon. he is on the phone now. thank you for taking the time to be with us. you wrote that book at the right time. you were the authority. he has talked with you a lot and you know about this man. tell us what is going on here? >> basically this was bound to happen at some point in the trump residency. has beennon all along on the outside, a fringe figure,
1:23 pm
whose career has been spent attacking political institutions. it was always going to be an uncomfortable fit to move into the halls of power. two essentially become the essentiallyt -- two -- to essentially become the establishment. theink we have seen from incredibly rocky first six months of the trump administration that steve bannon, while he may have a visceral understanding of trump's voters, really is not equipped to control the president or to guide him in a way that will lead to a functioning white house. i think that is why he had to go. david: we have two archetypes. the ultimate outsider in steve bannon and the ultimate establishment such as general kelly and gary cohn. we have this conflict happening.
1:24 pm
the real question, is the president an outsider or is he part of the establishment? of steveismissal bannon, is it a shift in the president's attitude? let's be honest, the president new steve bannon and his personality. he put him in there because he wanted an outsider. >> i think that's right. steve bannon really has an way that trump in a most other political advisers around him do not. the problem steve bannon ran into was not the trump has decided to try and become an establishment politician -- it is that steve bannon couldn't interact with or work alongside those establishment figures. you saw that in the public interview he gave to the american prospect two days ago in which he not only openly and on the record criticized administration figures like cohn cohen, -- like gary
1:25 pm
but he also undermined policy on north korea. you cannot have a white house adviser doing those kinds of things. consistently undercutting the president and members of the administration. and hope to have any kind of a functioning white house. david: what does this mean for gore got and steve miller? they were thought to be very close to steve bannon -- gorka and steve miller? >> i think gorka probably leaves. steve miller had a long relationship with him, he is a smoother figure and has sidled up to other people in the administration including jared kushner. we will see if he sticks around but it may be possible for him to stay. he doesn't have that high profile and has displayed more discipline than steve bannon had. it is the lack of discipline that cost steve bannon his job today. and finally, we
1:26 pm
have to remember that steve bannon came from breitbart news. does breitbart news now come to be in opposition organ for the president? >> i think it will play a role as an opposition outlet but not to donald trump specifically. it will be in opposition outlet to the mainstream forces within trump's white house -- the so-called globalists. steve bannon on the outside is likely to go back and continue the attacks he was known for. david: josh, thank you for joining us. when we come back, much more on this big story of steve bannon leaving the white house. this is bloomberg. ♪
1:27 pm
1:28 pm
1:29 pm
,> i like him, he's a good man he's not a racist, i can tell you that. he is a good person and gets a
1:30 pm
ir press. we will see what happens with mr. bannon but he is a good person. david: this is bloomberg markets, the trump economy. breaking news, this is steve bannon, the senior strategist announcedent trump, he is leaving the white house. general kelly and steve bannon have mutually agreed that it will be his last day. steve bannon is officially out. we want to bring in craig gordon, executive editor from washington. let's start with you. it is official. steve bannon is out. what is the aftermath? >> it is a huge win for john kelly, the new chief of staff to donald trump. everyone was watching to see if this four-star marine general could impose order on the white house.
1:31 pm
i'm not suggesting he has succeeded but a lot of people would look at steve bannon as a person who brought disorder to the white house. he is a big thinker and talker and likes to share his worldview out there. sometimes in line with the president, sometimes not. for kelly to be able to ease him aside, the markets and others will be that as a sign for more stability inside the white house. david: let's turn to a market interpreter. gina, what are the markets telling us? i asked earlier whether this is news about bannon or kelly? >> it is hard to say on any given day what the markets are reacting to. we started off the day reacting to a surge in energy costs. and the result is energy stocks are outperforming significantly. utility stocks are also outperforming which is usually a sign of risk aversion in the market.
1:32 pm
if this is being viewed as a good thing by the market you would start to see cyclicals outperform, sectors that are more internationally exposed. this would presumably reduce the risk of trade relations with china being disrupted. we will wait and see. is the best answer. i think should this remove uncertainties with respect to trade and social uncertainties that have popped up over the last days, we could see markets move higher. david: it is a healthy admonition to remember the distinction between correlation and causation. it might be or it might not be. >> it is human nature to want to explain every move in the market with a news fact. sometimes it is more than that. david: it is exacerbated in television. we want to explain it right away. washington, jumping ahead a little bit, what might
1:33 pm
this mean for capitol hill? things like tax reform, the debt ceiling, the budget? david, congressional republicans will have a jampacked agenda when they return in september. they have to get must pass items off the table before tax reform. david: go ahead. >> they have got the government byding that has to be done september 30, you have to raise the debt limit and extend expiring programs like the children's health insurance program and then you moved to tax reform once you get that stuff done. i don't think steve bannon's departure will have a major impact on the legislative agenda. this was not something he was particularly engaged in. it is not a great relationships on capitol hill. before this he was running breitbart news which was making life difficult for house republican and senate republican
1:34 pm
leaders because -- moving in the staunch conservative directi on that the base wanted. steve bannon tried to make a move early on this year to push republican leaders and wavering republicans to pass the house health care bill to replace obamacare. he made that threat and it didn't work out. the following day, they pulled it. thes not clear to me that legislative agenda will be impacted by steve bannon's partner. -- departure. out the dayarted thinking that the president would be working on afghanistan at camp david. is there more to come? is this part of a larger plan of the president's to reshape his administration? >> we don't have a sense of that. a name for viewers to keep an eye on is sebastian orca -- sebastian gorka.
1:35 pm
he was very closely aligned with the steve bannon camp. the nationalist camp. we don't have an indication that this is some larger housecleaning. kelly could move bannon out the door, that would be a good day's work for kelly and people like him who think the white house has grown too chaotic. i want to caution. there is danger of over reading this. donald trump thinks we should have a trade war with china, a wall at the mexico border, whether we should pull troops out of afghanistan at camp david. those are all views that steve bannon might have but donald trump has them to. before steve bannon was fired today. we have to be careful that we will see a major course correction and policy. thea lot of folks in grown-up wing of the white house, they are hoping by removing steve bannon, a troublemaker, maybe they can get
1:36 pm
back to work a passing tax reform and obamacare repeal and the other things donald trump is trying to accomplish. david: gina, i want to come back to the equity markets that you study so well. it is not clear why the markets moved up after having been down for a while. what do the markets want to see out of this white house? or have they just given up? >> i think there is evidence they have given up on the white house. we did a report earlier this week on taxpayers in the s&p 500 and how they performed -- we found since november of last year, the taxpayers that pay the least amount of taxes are outperforming. you would expect the reverse if we were counting on tax legislation in the near future. there is a not -- there is not a lot priced in. there is upside. legislation, greater process on deregulation for the financial sector, which is a big topic.
1:37 pm
i think you can see upside. i think would equity markets would like to see a stability so they can focus on a strong earnings story that is driving stocks higher. anything that would contribute to better earnings going forward or to an improvement in the economic outlook will be greeted friendly by the equity market. david: when you think of stability you might think of general kelly. craig, that expression about the camel in the tent. is there any danger that steve bannon, who ran breitbart news, might turn on this administration and from the outside might be taking pot shots? >> yes. i thought the life insurance policy with donald trump, is that he is more dangerous outside than inside. steve bannon had a job at the white house when he gave an
1:38 pm
interview this week, saying i'm at war with gary cohn and steve mnuchin and they are wetting themselves over what i am trying to get done. that is when he had the job. what is he going to come up with when he is no longer on the payroll? i think that is the calculated risk that kelly and others are taking. outside, they thought they had to do it. could no longer put off. david: many thanks. here, gina martin adams, thank you all for joining us. i want to bring in someone that most of us know. tz, one of the most famous pollsters. thank you so much for being here. i want to pick up where we left off with craig. what risk is the president
1:39 pm
running that he could be alienating a vocal, if not a large part of his base? >> it is a significant risk. i'm doing an interview from disney world. the happiest place on earth and i find it a coincidence that right now the white house has to be the most unhappy place on earth. put it in perspective. they changed the chief of staff, the chief strategist, the communications director, the press secretary. i went back over the last 30 minutes to see any administration that underwent so much change -- there are none. not only are we in uncharted waters but these are people who basically put their reputations on the line when they signed up for this administration. hell hath no fury like the strategists scorned. i could easily see steve bannon and others as they come and go, showing resentment for how they were treated. you have to it knowledge that
1:40 pm
this is not been the most organized white house over the first seven months. david: everyone would have to agree with that. i want to draw on your history. you worked with newt gingrich on the contract of america. you have worked with iconoclasts and rabble-rousers to make fundamental change in washington. break acessary to fairmount of china to change the place? >> you have to start with policy, not politics. this administration has not had at the forefront, -- it is not about an agenda, it is about a philosophy behind it. that it can rally the american people, challenge its critics, and moves forward as one. where newt gingrich was different than donald trump is he united the entire republican caucus around a single contract with america.
1:41 pm
donald has asked people to support him. in terms of communication he is not asked people, until the very last minute to support different components of the legislation. frankly, some of the communication behind those requests to the american people have been inefficient and ineffective. steve bannon did not help that effort. those who aren't listening to this interview and they want trump to succeed, it requires those who remain to get on the same page, commit to the same agenda, to coordinate with the house and senate which has not been happening, and a lexicon that frankly, this administration doesn't have. david: that answer is powerful, it has to start with policy. ideas. the philosophy. there anyone around president trump that you are aware of that could help him develop that? he doesn't strike me as the philosophical type. but you need an overall theory. it was clear what newt gingrich
1:42 pm
was.ere he was -- theory >> one of them is well known by the public and the other isn't. kellyanne conway is the best translator of philosophy and ideology to classical politics of anyone in washington today. she has the capability -- if i were devising trump, which i am not, she should be the communications director. short, whoark originally worked with the koch brothers. in all the testing we have done he is the single best communicator for the trump administration when it comes to policy. if the two of them took leadership roles that had been given up to the chief of staff and strategist, if they were the implementers of the messaging, you would see a much more successful trump strategy on capitol hill. david: does this have to come
1:43 pm
from the president himself or can general kelly bring this to the president and have it implemented? >> it has to go in both directions. it has to come from trump because he will be his own best communicator. at times he is been his own worst. the president has to want to explain, educate, inform, and win people over. . it is not a matter of running to west virginia or pennsylvania that will not do it. it will not be changed if he will step in and step out. similarly, the chief of staff has to get control so that you have a coordinated, organized effort which is not existed since day one. every time people were critical of trump by saying the administration was disorganized, instead of trying to fix it he would criticize them. that doesn't work. david: how much time does the president have? we are only six months into the first term.
1:44 pm
they don't have forever. >> you're right. one of the things i've learned in politics is, you only get one shot at a first impression and trump is long past that. you get nine lives. if donald trump were to change the organization and the would see a new administration and he still has time to do that. however, if you cannot get health care passed in the first year and if you fail to get tax reform passed in the first year, a lot of people who backed him and voted for him, may give up, throw up their hands in desperation. and just turn away and that would be a disaster for this administration. david: next year ends in an even number. there will be new congressional elections. how soon as the white house have to think about how they will frame their position to hold the house and senate? >> the answer is, last week.
1:45 pm
last month. january 20 of this year. people start to make up their minds. the democrats do have a noticeable, beyond the margin advantage in the generic ballots. that said, republicans have better challengers against democrats in the senate and they have a huge advantage over the democrats in terms of fundraising. it's a ratio i have not seen in modern times. but if you have a president with favorability numbers that trump has now which are in the mid- 30's, which understates his support but still, if those at the numbers now you have to say that the republicans are in jeopardy a year from now. they better get legislation passed that the public who voted for them expects them to deliver. david: frank, thank you so much for coming. particularly since you are at disney world. that is a great place to be.
1:46 pm
great to talk to you. now we will check on markets. abigail doolittle is here with the latest. >> we are seeing a small sigh of relief from investors on this news that steve bannon is out of the white house. that today is his last day. the sigh of relief is getting smaller as time goes on. the dow is down. flipping between red and green on this news. the gains for the s&p 500 and the nasdaq are smaller than they had been. let's take a look at the day overall. yesterday we had the big selloff yesterday. the worst day for the dow since the middle of may. earlier today we had all three major averages, this is the s&p, the indexes have been trading lower for much of the morning and then around 11:00 a.m., we see a spike higher for the s&p 500 after it was reported that
1:47 pm
trump would announce something around steve bannon's future very soon. then there were additional reports that dan and was out. we see that the s&p 500 took a late higher and then after the white house actually confirmed , thesteve bannon was out s&p 500 has started to moderate gains. it makes sense. this is not the first resignation or firing from the white house. there was the communications director, the press secretary, and the chief of staff. if this were a fortune 500 company, the stock, that turnover at a high level, the stock would reflected in a bigger way. the s&p 500, investors really saw steve bannon as a divisive force at the white house. perhaps some stability could be ahead. one of the more remarkable reactions is oil. let's look at the intraday chart for oil. flat, exxonading
1:48 pm
mobil, one of their biggest refineries, there was an outage. at the time of the headlines, look at this massive spike higher of 2.8%, best day in august. the commodity strategist earlier told me that this has everything to do with short covering. it could have something to do with dollar weakness and investors accepting the idea that the dollar is likely to stay lower longer. that would help commodities. the 10 year yield any influence here, up one basis point, reversing from being down it was when it was down when havens bonds were rallying and now they are selling off slightly. we are seeing the opposite. , something the banks that the federal reserve will certainly like. our bloomberg intelligence strategist has talked of this in the past, how the fed reserve is
1:49 pm
more favorable toward the banks and helping the financial markets trade higher. david: terrific and fascinating report. the white house saying that it will be steve bannon's last day. we will have more breaking coverage next. this is bloomberg. ♪
1:50 pm
1:51 pm
david: this is bloomberg markets, the trump economy and i'm david westin. ,et's go back to craig gordon let me start with you this time. we have reaction out of the republicans thus far too steve bannon leaving the white house? >> i've been speaking to republican aides over the last half hour and it steve bannon
1:52 pm
did not have a lot of friends in the republican-led congress. he was seen as a troublemaker from the outside when he was running breitbart any forced republicans to take positions that were dangerous and not realistic lyrically. -- one eightke to i spoke to -- this maybe overstated but the order comes from the top and we have not seen a lot of discipline and focus from president trump himself. whenw kelly's reaction trump was giving that press conference where he seemed to go off the rails according to his own staff and discussing the white supremacists and neo-nazis in charlottesville. the republicans on capitol hill are happier with him gone then with him there but there is always a danger of what comes next. , is capable of creating mischief from the outside depending on what he does next. sense,craig, give us a
1:53 pm
what comes next? >> the biggest question hanging over washington is whether this is a fundamental change inside the white house or more of some housecleaning that will not have an effect? let's talk candidly. steve bannon, stephan miller, other advisors, -- it is mostly donald trump. he stood at that podium on tuesday. he was not supposed to make those comments about charlottesville. he was not supposed to stoke those fires and he quickly did and spent 20 minutes sharing his deepest, darkest thoughts on race relations in america that made many people in the white house cringe. donald trump can't be fired. kelly has to find a way to rein donald trump in. the old expression, let reagan be reagan, let trump be less trump.
1:54 pm
sir, you are damaging yourself, it may feel good, but long-term you're hurting yourself with voters and staff morale. that is very tough and the white house right now. you need to find a way to channel your political instincts into more positive things are moving our agenda forward versus grants that make you feel better in the moment. john kelly has to figure out how to get in donald trump's head and win his trust and steer him on a path where they can get stuff done in congress this fall. right now that looks and out. david: in the normal world we would be talking about how the white house gets control of its message again. as we speak, they are meeting in camp david. mnuchin ande steve mitch mcconnell will be meeting together in louisville to talk about the economic plan. ,omeone we have not mentioned
1:55 pm
can she possibly achieve getting this out? >> she is a bright person. she is been a loyal person to trump for a long time. she is in the job as an interim role. what she brings for trump is that trust factor that i was talking about with john kelly. i am not sure that he can have the candid conversation to say, you are damaging yourself and the people around you. i'm not sure that is who she is. i'm not convinced john kelly can do it either. he is a recent arrival and was only brought on after the election. he wasn't supporting him during the campaign. you're getting into deep stuff, who can reach the president? and convince them to change his ways? i'm not sure anyone can do that. david: there is an unfair question. when we let you get off the tv
1:56 pm
finally and you get to report again, i won't ask you to reveal sources but who do you want to talk to to find out what is going on and where this is going? >> mostly people in the white house. officials who are looking for change. , thatare people hoping this will happen. only people inside the white house will have any idea what is going to happen. david: the spotlight remains firmly fixed on the white house. thank you both very much. bloomberg markets, we will have more on the white house, saying today that the van and, it is his last day.
1:57 pm
1:58 pm
got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here.
1:59 pm
find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. 3 p.m. in new york, 11 a.m. in san francisco, i am lisa in for scarlet fu. julie vang and i'm julie hyman -- julie: and i'm julie hyman.
2:00 pm
welcome to bloomberg markets. we are alive and bloomberg world headquarters in new york over the next hour. here are the top stories we're covering on the bloomberg and around the world. stever personnel shakeup, shannon is out as the white house chief strategist. the white house says he and chief of staff john kelly mutually decided today would be his last day. phils are gaining on latest revolving door at the white house and we are seeing bouncing around between gains and losses. fanon's exit seemingly good news after hetors called for an economic war with china. and shares a foot locker plunging. we begin in washington.


info Stream Only

Uploaded by TV Archive on