are watching. changes that coke industries, david koke is stepping down from what this means for the conservative political empire. ses paul manafort ofrt mueller accusing -- attempting to tamper ofh witnesses, accusing him money laundering and acting as a foreign agent of ukraine. a crowded california primary field, democrats are facing a potential he disruptive -- potentially disruptive vote. too many viable candidates are running for the same seat. ♪ david: president trump will be holding two white house events this afternoon, the first one is what he calls a celebration of america.

the second, a meeting with republican lawmakers concerned with the course of his trade for. joining us is kevin cirilli. help us with celebrate america. i do not remember that holiday. kevin:hampiophiladelphia eaglese supposed to be at the white house, and we got a statement from the administration that said they submitted a list of 81 names of eagles' players as well as coaches and staff, as well as this had been months in the making following their win in february. then they told the white house -- according to the white house -- they would only have a handful of players and tried to reschedule it for a time when president trump was supposed to be overseas. president trump said no, he will have an event later on where he will honor the national anthem and celebrate america. this is a cultural award that has -- cultural war that has

divided the country. kim kardashian was here last week. you cannot escape politics. david: trade policy seems to be l sit down with republican lawmakers, and his problems increasingly seem to be with republicans. kevin: mike crapo will be here along with senator cornyn and with president trump, particularly about his trade policies and how he is using his authority and the issue of national security, as well as trying to walk back some trade restrictions on telecom giant from china zte. the senate banking committee, of which senator crapo is the on aman, pass legislation vote that would make it more difficult for president trump to walk back those restrictions on te.

and the white house feel adamantly they would be able to use wilbur ross to enact whatever kind of framework they want to one trade. whost ied a senator feels the president is going a bit too far with using the argument of national security to accomplish these trade agendas. shery: he is not the only one feeling that way. koch launching a multimillion dollar campaign against the president's tariffs. we had leaders about -- headlines about one of its leaders, david koc no means a is by centrist organization, so for them to be aggressively arguing against these policies, senator mike leigh arguing aggressively against these policies at a time when the president and his senior economic officer are

threatening to pull out of nafta in goa bilateral route. biodelf and said -- go a -- bilateral route. whenalso comes at a time the president, should he decide to pull out of nafta, would have to fall back on a bilateral deal with mexico and canada. he has got to give six months ing notice -- warning notice and that could be coming soon. shery: the bilateral deal of could be one of those elements that the white house is considering at the moment. we are hearing from larry kudlow. kevin: on that point, we have got to talk about the politics of some primaries happening today. which has it iowa, today, where the two senators from iowa, chuck grassley and joni are asked, two republicans ernst, two republicans

arguing against scott pruitt on that policy. china. he is facing it from all fronts on policy today ahead of the g7 and ahead of june 12, the summit in singapore. david: kevin cirilli has the view at the white house. thank you very much. let's check in on the markets. at this point for the major averages, we are looking at very small moves, but earlier we had two major averages trading to the upside and now the dow and s&p 500 are lower. flipping between small gains and losses but right now, near session lows. putting in its first all-time high since march. at that time on pace -- not right now -- for its second-highest closing high since yesterday.

it will be interesting to see whether they close in the record territory. a little bit of a reversal of yesterday's modern route -- modest rwe will take a look at t it today chart of the dow transporthey were down yesterda% over the last two days, the worst two day since april 24. this could have to do with increasing trade tensions and the g7 meeting. if we break down the individual concerned -- components, you will see why. southwest airlines, this has less to do with trade tensions but the shares are down 3.2% after the company cut a key revenue view yesterday. .b hunt down 1.6% there is $6.5 billion going to truckers going cross-border between canada and mexico, so depending on nafta and g7, there could be a potential downside. 1.9%. city southern down

they receive 40% of their revenue from mexico. union pacific, the ceo has been in favor of nafta but now we see all these uncertainties and the individual members are taking a hit. tesla is taking a hit, down 2.8%, its worst day in about two weeks, ahead of the shareholder meeting that starts in investors will want to know about the debt situation, cash burn, and production of the model three. ,et's hop into the bloomberg and you can see this chart of teslas short interest. back in 2014, the all-time high short interest when there was all sorts of concerns about the burn,low and cash dropping down and peeking back to about 34%. earlier this year, close to 20% but back to 31%.

sellings are bearish the shares, hoping they will go down. its 2010 ipo, but it will be interesting to see if these bearishrt investors get the near-term right and terms -- in terms of what is ahead for tesla. shery: we are now seeing the euro spiking and paring back earlier losses. we hear from euro area officials the ecb is considering a june 14 meet a live meeting, in order toebate their exit from qe. euro area officials telling bloomberg this debate could be about winding down bond buying. purchases are currently to run until september. this is bloomberg. ♪

♪ shery: this is "bloomberg markets: balance of power." i am shery ahn. david: i am david westin. ma president trump blasting his own attorney general jeff sesshe tweeted the "russian witchhunt continues becausesesss going to recuse himself." the president says sessions new better than most there was no collusion. italian prime minister promised that his government will push through a populist agenda. guaranteed income for the poor, tax cuts, and limits on immigration. called for , stronger europe.

wtein has pleaded not guilty to rape and criminal sexual assault charges. in a new york court, themovie- d in fact -- he quietly answered the judge' questions today. dozens more women have accused him of sexualharassment from harassment to assault here it president trump i to the g7 summit on friday where his counterparts are expected to give him an earful on steel and aluminum tariffs. now, members of his own party are becoming involved in the process. shery: we will continue talking about the tariffs and trade tensions with china. here with more insight into how the gop is feeling in an era of rising trade tensions is senator mike rounds. thank yo mucur time.

agriculture an important industry in south dakota and nafta. be anlateral deal could option instead of a trilateral deal in the form of nafta. how would that work for south dakota? sen. rounds: i think it creates uncertainty in the market. today, we understand the pros and cons within nafta. things,e some very good because it makes it easy for us to trade with mexico and canada. if you start breaking itut and try to do individual deals canada and mexico, you end up back where you started from, if you are successful. perhaps you can make a better deal, one or the other. it brings uncertainty to the market. one of our concerns has been that as we renegotiate nafta, we have also declined to participate in the transpacific partnership which was basically

ready to go in january last year. billion peoplea who wanted to trade with us in and around the pacific rim. now we are in the middle of having a trade war also with china. jus an example, each of these items by themselves is one that we could manage but when you have all of them in flux, it puts our country, i believe personally, in a position of less strength when it comes to any one of those deals. i understand the president wants fair trade. we agree with him on that. we would really like to know what the end game is, what the strategy is moving forward. in south dakota, just the fact that we are talking about tough tariffs makes a huge impact. we example, china, the day started talking about imposing tariffs and they were going to retaliate by not buying soybeans

, the market in one day went down by $.30. that is about $72 million that comes off the balance sheets for south dakota producers in one because these negotiations started, we are hearing cho buy more farm and energy products from the u.s. and that could be $70 billion. if these negotiations had not been started in the first place, you would not have gotten a concession like that. and the broader picture, youd g? that is what the administration claims. sen. rounds: we think the president is right when he says he wants fair trade. the best question is -- how do you go about getting it? fronts or deal on all solidify one trade deal before you go after the renegotiations in another trade deal? if we had nafta or with canada hadmexico complete, if we

tpp complete, or even if we had individual trade deals with each of those 11 countries complete, think about how much of a better position we would be in, and negotiating directly with china, them recognizing we trade with half a billion more people than when we started that is the question a lot of us are asking. the other part on this, and one that concerns a lot of us, one area in which we are talking about tariffs on, aluminum and steel, the president has suggested this is for national security purposes. he is taking that from a 1962, called the trade enhancement act. it is section 232 having to do with national security, and it says the president can restrict imports of goods and services for national security purposes. when you push the envelope and say that steel and aluminum, both are important to national defense, but we only take about

3% of what we produce in the united states for military purposes, if he is pushing the envelope, he does invite by congress' revisiting of that particular law and whether we have to do redefine it. that will add to the uncertainty in these negotiations. david: you have laid out various waysu would the president alter his you have some republican colleagues about to meet with the president. consensus onoad capitol hill about the direction you are setting out? what are the chances, how can you bring the president to change his course? sen. rounds: first of all, it is more along the lines of expressing the concern that we recognize how critical this is. we also recognize he has lots of irons in the fire. we are not trying to undermine him as much as say, if you want our support you have to bring us into the loop for what your plans are. what is your end game? had do you plan on getting

there? .ive us support in the meantime, if we have chaos in the market and the plan is not in place and it is not a plan we can look at an ourse, it will be more difficult for us to provide public support to you rather than be seen as being critical of what appears to be multiple events all going on at the same time, and not necessarily coordinated. we would like to avoid that problem. sher senator mike rounds is south dakota -- of south dakota. fashion designer kate spade has died. law enforcement tells the associated press that she was found dead in an apparent suicide in her new york apartment. trading at session lows following the news. we will bring you any details as we get them. ♪

♪ shery: this is "bloomberg

markets: balance of power." when eric schmitt was elected treasurer for the state of missouri, he confronted a problem seen at the state level in this country -- a state pension plan that was unfunded. the funding level had 70% of what was necessary. he came up with a plan to address that, and illinois is addressing a similar approach. we now welcome him from st. louis. sen. schmitt: thank you for having me. david: explain in br the plan? sen. schmitt: illinois, as most people are aware, has had significant issues. junk bond status last year, raise taxes on middle-class fan -- families. they are an outlier, but most states have a similar challenge. illinois and missouri is about

30% funded. we endeavored to tackle these issue. we wanted to be hones with taxpayers and we h slnvestmen in missouri, we gave a present value to all the vested retirees who are no longer working with the state, but before they are collecting and say, you can get 60% of the benefit than you would down the road and you can get it now. we had about $100 million of liability come off our books. illinois is pursuing the same thing and they second state to try to find budget relief, and address the unfunded pension liability they have a significant level. david: you reduce your reliability. what does that due to the funding level for the remaining people? sen. schmitt: obviously, they still have the benefit that was promised. for us, about 25% of the folks who were eligible to the option.

it puts the plan on greater financial footing for those people who are going to retire at some point, or current retirees. this is one solution to deal with the massive issue nationwide. it is really a creation of politicians and unelected bureaucrats kicking the can down the road, and lying about the severity of the issue. one of things we did in missouri, we were honest and we have been working with stakeholders to come up with solutions. missouri was the first state to do this, illinois is fo suit, and i imagine other states will be looking at this as an option. shery: people actually need to choose this, so what is the issue that the buyout would be voluntary? sen. schmitt: we wanted to make sure people had an option. they have been mise by s sevel years ago. we have been encouraged. about 25 per to -- 25% participation rate.

have to bring people together to figure out what the solutions are to deal with this. ,eople made a bunch of promises we have a really rich system and a lot of states, and in missouri and illinois, where you have $.30 or $.60 on the dollar for what you were promised, this is a moral issue, not just the policy issue. anything states can do to look ahead and try to be thoughtful about how they address these problems is really important, because not a lot of people talk about it. these deliabilities threaten state's abilities to fill potholes and fund education. shery: when you take a look at the united states across the country, what other pension buyout model be implemented to? sen. schmitt: any of them. a lot of states have multiple pension systems. this is just something in missouri that we tried and it was pretty effective. we rate up to ind --

reupped it a second time and had some more folks sign up. we were assuming 8.5% returns and we are lowering that. we are being honest with folks here we are lowering mortality tables. you have the legislature dealing with those issues. literally hundreds of pension systems across the country that could choose to follow suit here. it is one option. there is no silver bullet. it is kind of a silver buckshot approach but we are trying to lead the way. david: are you buying yourself a problem 10, 20, 30 years down the road when people have not invested wisely and you have destitute elders? sen. schmitt: we are giving people the option. i would trust investing my own

money better than some politicians in springfield. people can choose to take that money and invest it how they want to invest it, based on their own risk aversion or how they want to pursueir dreams. we are giving people the option, which we think was the right approach. shery: eric schmitt, treasurer of missouri. bergsten next, fred with the peterson institute for international economics. we will get his thoughts on the president's latest nafta strategy to negotiate three separate trade agreements with mexico and canada. this is bloomberg. ♪ what's a gig of data?

well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots inc you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. david: this bloomberg markets: balance of power," i'm david westin. shery: and i'm shery ahn. u.s. stocks in treasury yields are down.

markets are continuing to monitor trade tensions. the s&p 500 is being led lower by financials, consumer stap and energy is one sector losing ground, which we have heard from sources saying that the u.s. government has found saudi arabia and other oil production increases. the nasdaq is holding flat as we have mega tech shares gaining ground. david: we turn now to mark crumpton for the bloomberg first word news. market: fashion designer kate spade has been found dead in her new york city apartment in an apparent suicide. the 55-year-old was found hanging by her housekeeping staff this morning and her company, kate spade new york has more than 140 retail shops and outlet stores across the u.s. and more than 175 shops internationally. president trump wants separate trade talks with china and mexico, but the white house economic adviser says that the president doesn't tend to withdraw from the north american free trade agreement, telling

fox news that negotiating with multiple countries can lead to a bad deal. court in puerto rico has ordered the island government to release all deatcertificates issued after hurricane maria struck in september of 2017. the have been claims that the official death toll of 64 is a severe undercount and the ruling comes just days after their institute of statistics sue the island health department, seeking more data on the number .f maria related that in northern california today voters are deciding whether to remove a judge from office for the first time in decades. angeredanti-judge many people across the country in 2016 when he sentenced a former stanford university swimmer, convicted of sexual assault, to a short jail sentence instead of prison. it would be the first time that a california judge has been 1932.ed from office since

global news, 24 hours per day, on air and on tictoc on twitter, powered by 2700 journalists and analysts in 120 countries. i'm mark crumpton, this is bloomberg. shery: now for the latest in the tit-for-tat face-off in which mexico will begin to tax a range of u.s. products. which president trump announced next week, mexico would slap tariffs of 25% uncertain cheese products, steel, tennessee taxes of 20%sing of pork, apples, and potatoes, coming at a time of nafta that untilely to be delayed later this year or 2019. let's get some insight into what's next with fred, the founding director of the peterson institute for international economics, a member of the advisory committee for trade policy and negotiations joining us from

washington. fred, thank you for your time. first of all, are we headed towards a trade war? if so, how well-equipped is the u.s. and the global economy to handle this? risk ofere is a serious a trade war. in office we have a protectionist president for the first time in modern history who wants to put import restrictions on a wide range of products and is already hitting about $100 billion worth of imports and he has talked about another 100 billion from china and has now raised the specter of 200 billion more in auto. it is now getting to be very big stuff. the other countries are going to retaliate on a dollar for dollar basis, that is going to hit our own economy very hard and could risk to theerious economic outlook both in the u.s. and globally. what is at risk here is the global trading system that has existed for 70 years on an agreed international basis.

it's a core element in global prosperity and stability, which has been assumed by investors, mpanies, workers around the world, it is all at -- now all at risk and that is a very serious threat to the outlook. shery: we have the message of a meeting in singapore, a beautiful island there, the capello hotel, that's the latest that we've got here you at the trade tensions right now and the u.s. relationship with china as well, this is not only going to weigh on the global economy, but also on geopolitics. fred: there are at least two major implications for geopolitics. one, as you say, the u.s. trade relationship with china, on the brink of a trade war, could undermine the efforts with north korea, since north korea is so dependent on china.

secondly, when a president goes into a major foreign-policy initiative like this, a normal prerequisite is to have all of your allies lined up to support you. at this time, however, the president has been attacking all the major u.s. allies. canada, the europeans, japan, korea, on the trade issues. therefore he has been jeopardizing the very alliances on which he relies to have a strong position going into his negotiations with north korea and/or china. this is pure folly. it is folly and trade terms because we need the other market economies to be with us in trying to get china to correct its trade problems. but it is also folly in geopolitical terms going into this major initiative with north korea. inconsistent- policy, contradictory policy, counterproductive policy, just bad on all counts.

it's clear that you have issues with some of the things that president trump might b doing on trade. take the other side, do you think that he has a point that many trade relations were formed at a time in world history that were different from the present time, very different, particularly with china, when it was a tion of what it was today. that we need to have a ?undamental new look at that how would you get that done as president? fred: there is a need for a fundamental re-look at china. they play by different rules, their state plays a much bigger role in the economy. the state owned enterprises play a much bigger role in the economy. the current, which were written for market oriented economies and for political democracies like our own, they just don't of library but the china. it's quite correct to say that we need to look at all of that

and sit down with the chinese and figure out what the new is ought to say. the problems are to hold in carrying out that strategy. one, as i said, the prident has been attacking the allies that should be with him in that effort. the chinese will clearly respond a lot better to a multilateral approach with europe, japan, korea and the others are with us rather than unilateral approach to the united states. the second point is that the united states is attacking china with tariffs on products largely the fundamental issues of intellectual property rights, cyber espionage, state owned enterprises. the remedy doesn't fit the crime and therefore, the whole strategy gets off track. what is needed is to take targeted action against the violations that china is clearly carrying out. then on the basis of that sit

down with the chinese and hammer out some new rules for the road. without an agreement to do that, this conflict is going to it will probably escalate and lead the world down e path to a trade war. david: fred, let me leave you with a quicke-choice question. if we don't go down that path, will it be the allies that keep us from it because they will be beating up on the president at the g7? politics in which the base turns on president trump? or it will be the markets? fred: it's going to be all three things. the markets very mslike this protectionist outbreak and the risk of a trade war. the president doesn't like to be blamed for tanking the markets and he will tank them if he goes down that road. he needs the rest of the world, like with north korea, like with iran and a whole bunch of other issues. he cannot just ignore them totally. third and probably most powerfully, when the president

nafta,the past drawn on he has gotten tremendous pushback from others. when he puts on the steel tariff , the people that use steel push back hard and there is going to be a very big domestic backlash and at the end of the day that may the most impornter. david: fred, thank you so much for your time. that was fred bergsten, from the international -- institute of economics. coming up, primary voters head to the polls in eight states, including california, where liberal enthusiasm could actually hurt democratic candidates at the box office. that is next. this is bloomberg. ♪

david: this is "bloomberg markets: balance of power," i'm david westin. shery: and i'm shery ahn.

hour,or our stock of the royal caribbean in rough waters, down 5% after troubling signs were warned against by morgan stanley. kailey leinz is here with more. >> they are saying a lot. royal caribbean is having its worst day in almost two years, at a one year low. the major cruise liners are all down today on the back of this morgan stanley report, analysts saying that they surveyed travel agents and say that may has been unusually strong and they are expecting week is in the market in the third and fourth quarter, citing a couple of reasons for it's the capacity on the cruise ships and this year they are expecting capacity to be 27 million plus -- 27 million customers on cruise ships, which is up from seven years ago. there is a big boost in supply that is a necessarily being met with demand, they say this is

leading to a price environment that they are describing as flat. another big issue, because we are talking about cruise ships on open water is hurricanes. primarily an issue in the caribbean in the summer and fall months. we can show you that the caribbean is a vital market for cruise liners, esenting 35% of the destinations for these ships. with what's going on in the climate, morgan stanley is taking note of that. that limits the top line, but what about fuel costs? kailey: that's obviously an important input, using diesel fuel. they are trending opposite of what they were, earlier in the decade it would have cost them lower, with oil prices weakening of it as opec is likely going to start rolling back those supply cuts that had placed president trump in the u.s., asking them to boost one million barrels per

day to bring supply back into the market. the -- it is not something that is going to change immediately. looking ahead, fuel costs are going to weigh on the margins of it, cutting their estimates for this year and because of that, 2.5% cut for the estimate, carnival is at 6%. so, a lot of issues at play. david: global outlook for cruise kailey: rgh waters. [laughter] you here.d to have eight states are holding primaries and the biggest of them, california, may prove to moste most -- the confusing. for help in sorting it out, we welcome sahil kapur. what is going on in california that is different? all eyes are on california because democrats have a chance of locking themselves out of crucial

primaries because of the unique jungle primary rule. for three of these seven winnable house districts held by republicans currently and one by hillary clinton in 2016 or democratic targets and in three of them the democrats have cluttered the field with candidates who threatened to split the vote and send republicans to the general election. one is the seat of and no backer. or -- dana rohr they worry a lot about slitting that vote and seg her and another republican, basically preventing themselves from even competing in the general election and then there's the seat vacated by darrell issa in san diego, where they could split the vote, send to a republicans along. roy,ther one vacated by s six democrats are running, so there's a lot of anxiety there. not want to squander a big winnable opportunity tonight. >> can the party leadership

provide some guidance? >> they have tried. the party leadership in these cases is backing one candidate, progressive groups are all over the place for -- potentially backing another candidate. this is ground zero for the potential blue wave, the democratic enthusiasm is higher nowhere more than in southern california right now, especially in these liberal enclaves. the party leadership has tried but they have not been particularly successful at shutting these candidates out. david: for they created the jungle primary, didn't anyone see this coming? it doesn't take a genius to figure out that this was a possibility. it works bothl: ways, right? thember of races under jungle primary rule have sent to bank democrats on and i could happen in the governor's race, where gavin newsom is the faraway front runner right now, a second slot could be taken by a democrat or republican and it's unclear in the senate race

in which feinstein is being challenged by a democrat and could usurp republicans beforehand. it's a give-and-take, but yht, f scenario where it could hurt democrats. shery: take so much, sahil kapur. coming up, senator mike lee of utah, one of the most conservative members of the senate, talked about free trade and conservative principles. that's next. this is bloomberg. ♪

shery: welcome back. some of america's founding were centralizers. men like alexander hamilton and john adams. they were vigorously opposed by those who feared the central government. mike lee focuses on his figures in the written out of history book, the forgotten founders who fought the government. >> i love that story because it

really is the story of america. 1744 at indian chief inis a conference in albany. he taught the gym and franklin about how the iroquois nation ey continued to govern themselves locally, operating as one nation for the purposes of defending themselves . it worked and it worked well and franklin eventually saw this as a potential model for american the time ofwhich by the constitutional convention it became. >> many people don't think of the native american influence on founding fathers, which is something that this book gets at . a lot of people were written out of history who had a lot of influence with these founding fathers and when ben franklin came back he came back from london after serving as a diplomat. put this in the prism of today, where president trump is negotiating a bunch of foreign-policy treaties. most notably in singapore. what can he learn perhaps from history?

he can learn to identify those issues thaite us as a country and bring us together. when we talk about trade policy these are, by their nature, federal policies that it -- affect the entire country at once and i hope in and to support that he will take those into account. >> the president is getting a lotk from some republicans within his own party , particularly for how he has been negotiating with allies on agriculture. what do you make of how the president is negotiating on trade? >> i respect any president whenever that president tries to improve our position relative to trade. i have a lot of concerns over protectionist policies. i have a lot of concerns with the 232 tariffs imposed on imports of steel and aluminum. of cross-border basis.dn a in the state of utah, for example there are a lot of things that we makeetween

canada, mexico, and other countries involved with the input that may be imported, but things that are manufactured or in whole or in part in the united states in this could affect that and restrict our ability to manufacture in the united states and that worries me. >> the administration has been signaling that they might draw from nafta. does that concern you at all? ask it has served us well in many respect. it's not perfect, so it don't fault anyone for trying to improve it, but whenever we get into a position where we might withdraw or prompt other countries to withdraw, that's a concern to me, especially given that nafta has increased the bar and raise the water level with regard to free trade and i think free trade is a good thing. the -- youet that get the sense that the administration is going to recalibrate or renegotiate some of their positions as a result of some of the pushback? >> a lot of that pushback has included the message -- do not

end the free trade practices that we have adopted. do not do anything that could destroy nafta. i hope that they will take that into account. i mean, look, the middle class to a significant degree from free trade. the things that we buy are less expensive and we have more job opportunities because of free trade. we need to look for ways to expand it, not retreat from it. >> you talked about george mason and how his relationship as a businessman, george washington pause neighbor, he had a really successful plan to negotiate some of the interstate trade deals. i'm wondering what lessons we can draw on from george met -- george mason in terms of trade? >> george mason was a big lever in free trade and that in order for us to survive as a country, we could have this kind of economic vulcanization. it's one of the reasons he voted against the constitution at the end of the convention. he was afraid that congress

could to easily manipulate trade practices within tted states. atall the concerns raised the constitutional convention, that one has not materialized in the way that he had feared. i think that mason would look at that and want to make sure we maintain free trade policy as much as he possibly could. interesting because i think there is internal debate in the republican party of free trade versus protectionism and this tension that we are really just watching unfold for our eyes. how do you sell your advocate for your position on trade, to the folks who are living in the heartland and in rural communities who voted for president trump who feel left behind because of nafta or as a result of these trade deals? >> it's important to keep in mind that everyone of us will pay lower prices on goods and services, especially manufactured goods as a result of free trade with a lot more job opportunies as a result.

for every job in america that relies on steel and aluminum manufacturing itself within the united states, there are many, many times that in terms of jobs that involve manufacturing the steel and aluminum as inputs fungib on an international market scale to produce things that in turn are sold outside the united states. it produces a lot of jobs in this country. >> you mentioned the negotiation these trade deals, is that wise question march of the president be using that section? some of your republican colleagues have really raise concerns about that being used as a tactic. >> i disagree with his use of it. i think it's unwise. if anything i haven't spoken to the president about it himself, i have spoken to him multiple s on this. it's the wrong tool in the wrong policy to use. there is no reason why this is necessary to protect american

national security. we have han enough steel and aluminum production capacity in the united states to mo than satisfy all of our national security needs, to supply our military, for example, with what it needs. a whole host of economic reasons not to do it is of the retaliatory trade measures it can prompt. still ahead, more great interviews from bloomberg investing, including thing -- the comanaging partner of bain capital. live from new york, this is bloomberg. ♪ bloomberg. ♪

fashion designer kate spade, dead at the age of 55. the associated press reports that she was found in her apartment this morning in new

york city, victim of an apparent suicide. her company has more than 140 retail shops and outlet stores across the u.s. and more than 100 75 shops internationally. routessian president vladimir putin says that sanctions against his country have worked and that moscow and the west would benefit from lifting them. speaking during a visit indiana, president putin said that the restrictions are harmful for everyone and that those who initiated them and those who were targeted by them. the u.s., the european union and other allies slaps sanctions against moscow over its annexation of the ukrainian pug crimean peninsula. european union countries remain deeply divided over how to reform the block asylum system with more than one million people, mostly syrians fleeing in comp ex, entering europe 2015, overwhelming greece and italy, entering strained relations amongst neighbors and fueling