bloomberg markets, balance of power. president trump taking aim at eu over the google fine. the storm still swirls over president trump over his remarks regarding vladimir putin. the white house efforts to contain the fallout. we have a stellar lineup of lawmakers who react to all these issues. ♪ kevin: the commerce department began open hearings is money to consider whether auto imports

are a threat to national security. secretary wilbur ross said it is too early to tell whether the investigation will lead to tariffs on imported cars. but let -- but the administration will find little if any support for the idea. jenny, thank you for being here. what is the latest? notould appear they are finding support at all. jenny: quite the opposite. we are seeing not just big ceos, but everyday americans saying this will impact us. we are upping the ante on the aluminum tariffs. there's no support whatsoever in congress. republicans and democrats crying out saying we need to fund legislative solutions to rein in the president on his tariffs authority. this is playing out as a commerce department is getting pushback from industry.

shery: how likely is it we will get a solution when the president meets with the european commission chief next week? jenny: we have to have modest expectations. there are divisions within the eu member states. germany is pushing for it more than other countries. the eu commission does not have a mandate to negotiate with the u.s. right now. u.s. -- the eu is not willing to negotiate with the u.s. unless the steel and aluminum tariffs are taken off and the threat of auto tariffs is taken off. that is not something that trump administration is willing to move on. we are at a stalemate. kevin: would you also note that it appears, especially with regards to some of this, some economists are saying the u.s. has the upper hand? this, again, to

the president tweeted the eu has taken advantage of us but we will not let this go on for too much longer. what does that mean? we are also thinking, ok, so it sounds like a threat and we are all waiting for the next shoe to drop. but piling on leverage on leverage, today, eu trade commissioner said he is doing that illegally. he is piling on leverage using but it's notrity legal. shery: we just showed the tweet by president trump this morning talking about the $5 billion fine applied to the google. they truly have taken advantage of the u.s., but not for long. we are not seeing the president back down at all. what is next? jenny: yeah, what is next? one trade block we are

dealing with right now in a trade dispute as kudlow and navarro and wilbur ross keep saying this is not a trade war, but a trade dispute. but we are having trade disputes with the whole world right now. keep watching what is happening next week, obviously, with the eu, and obviously with china. we are in a stalemate, too. we heard kudlow saying we are not moving on trade talks because president xi is not offering us anything satisfactory. and until that happens, we will not see the trump administration back down. it keeps escalating. when will we see the de-escalation is the big question. kevin: thank you for being here. shery: let's get a quick check on the major averages. we see u.s. stocks paring back earlier declines but still in the red. the dow falling a quarter percent after gaining for five consecutive sessions. we have disappointing earnings

results. today, disappointing earnings from american express, phillip morris, and ebay. treasury yields also declined broadly. live from new york and washington, this is bloomberg. ♪

♪ this is bloomberg markets balance of power. shery: let's get a check of the news. mark: president trump wants another meeting with russian president vladimir putin. the president tweeted today he

wants a second summit so they can begin implementing ideas they discussed in helsinki. mr. trump mentioned a variety of issues, including terrorism, security for israel, middle east peace, ukraine, and north korea. the president said they can all be solved. there has been a mass evacuation fromria, 7000 people from pro-government villages that have been besieged for years. in exchange come out of the syrian government is expected to release detained insurgents. the eu wants its members to prepare for a variety of britains, especially if lee the block without a deal with trade arrangements. britain and the eu nations are moving for a smooth exit next march, but talks are progressing slowly. there have been set tax, like the sudden resignation of david

been -- there have setbacks, like the sudden resignation of david davis. one in 10 people in north korea live in slavery with most forced to for the state. it cites the nation's coal exports as greatest concern. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ kevin: i deal with the kremlin? the white house said yesterday they are not ruling out russian putin --'s vladimir russian president vladimir putin's offer. there actually might be a deal?

>> well, how to truly know? he said today he wants to meet again. what he was saying was agreeing that may be it was a good idea to invoke this 1991 treaty to allow russian investors to come to the u.s. to talk to send your citizens that they are interested in and vice versa. maybe bob mueller can go to moscow and talk with high-level russian intelligence officers that were named in the indictment last week. kevin: we are talking about this investigation that is very important. but on the policy side, nothing has changed. the u.s. has not reversed its position on lifting sanctions over crimea or any developments on the opposition to the pipeline. >> right. on the sanctions front, congress put a straitjacket on the present last year with that bipartisan piece of legislation

that forced his hand on sanctions. do of the things we tried to with the magazine piece this week was take a look at the effect of not only the performance of the president at helsinki it also the and diamonds landing three days prior. one of the obedient of faxes one effects ofone of the taking that he and pressure off of rod rosenstein who is the public face of this and has had to take a lot of -- he is also the heat shield. mueller has been working in secret, on the investigation and self -- on the investigation itself. it takes some of the pressure off. shery: mr. rosenstein in fact has been bolder when he came to the mueller probe in the last month. came to the guy who

public until -- we did not know about him until last year. he was the guy who wrote the memo that the president used to justify the firing of james comey. it has been a tough year for rod rosenstein. attorney general sessions has recused himself from the russian investigation. rod rosenstein is in charge of it. he has had to stiffen up a little bit and faced a great deal of political pressure from particular members of the house freedom caucus. there was a contentious hearing last month in which he went toe to toe with jim jordan. there have been rumors that there are members of the house for talking about finding ways to impeach him. that temperature seems to have lowered in the past few days and he is going about his job again. kevin: very important conversation. i want to stick with russian the mueller probe investigation. our next guest can bring more

perspective on the white house relations with the kremlin. the congressman. trump said he is open to another meeting. we have seen him walk back comments. are you satisfied? >> there is a lot to make of all this. him having another meeting with vladimir putin is probably a good idea. in the subjects they would discuss, again, terrorism, security in israel, the different areas that we can work globally, i think that is a good idea. but it has to be done through this lens and that is that vladimir putin is not our friend. he does not want to benefit america and he does not want to benefit democracy around the world. if we are careful about it, we should engage them. i always said we should be talking with them but in a realistic fashion. shery: less that, -- , the presidentht

giving an interview to cbs, seemingly saying that he has confidence in intelligence community and the findings they found, that russia did in fact try to tap into the u.s. democratic institution system. theyou satisfied with president's satisfaction or of the communication of his satisfaction with the intelligence community? >> i am. i honestly never dotted that. i have had time to talk with mr. trump. i knew he respected our work and he understood. look, you just don't question that russia try to interfere in the election in 2016. there's no question they will try in this november and in 2020. it's been going on for generations. but i think sometimes mr. trump conflates two issues, the reality that they did try to interfere and this idea of fairsion, weights, to be to him, he has been accused of treason for more than two years.

they are two separate issues. no evidence of collusion. mr. mueller to date has i had any indictments that indicate collusion at all. the reality of interference, there is no question. it will take place in the future. we have to be better at countering that. shery: yet the president's friendly posture with president putin, with that provide ammunition to the mueller probe? >> i don't think it really provides ammunition. that's just him try to develop a relationship with another world leader. but it does provide for those who have such animosity and such visceral dislike of this president. a provide them with ammunition saying he appears to be favoring russia. look, once again, we should have conversations with the world later, just that we should with president xi, like we should with anyone of our friends are adversaries. one of the unfortunate outcomes

for this is that it did play into that narrative and i think that is very unfortunate. shery: with this operation -- will this cooperation with russia involve the idea of vladimir putin whining russian authorities to pose questions to the foreign ambassador to moscow -- wanting russian authorities to pose questions to the foreign ambassador moscow? undert is he investigation for in russia? nothing that i know of. even if they make claims that he was, they would be meaningless. there's no way in the world that vladimir putin will allow mr. mueller's investigators to go to russia and have meaningful conversations with these people that are under indictment. there's no way in the world he will allow a free and open investigation of russian citizens. would be virtually nothing accomplished by anyone of those conversations taking place.

kevin: then why so many mixed messages? with sinceve spoken i was in helsinki and coming back, why is the white house putting out so many mixed messages? on this issue of the investigation, it is all over the map. >> i wish i knew the answer to that question. it makes my job much more difficult. again, i know the president. . know his interest is in protecting america's interests i know he is willing -- i know he is interested in protecting america's interests. i know he is willing to be tough on russia. the messaging over the last few days has been confusing. i think he attempted to restart that yesterday. i think that was helpful. hopefully, now, we can just move on. kevin: hopefully now it can just

move on. i think there are a lot more questions. have much more balance of power coming up next from washington and new york. this is bloomberg. ♪

♪ kevin: this is bloomberg markets balance of power. rough --shery: russia fallout. is it enough to make the house blue? is writingnow williams.- ryan despite all of the backlash that the president received after

this helsinki meeting, he is still getting lots of support from his base. we are hearing the reuters poll that republican voter still approve of the president's handling of the rush issue. why does he have such a strong hold on his base and can democrats overcome this come november? >> he has a strong hold on his base because, over the last year or so, we have seen even republican members of congress in the senate contort themselves to get in line with the president. when you have both his base and some of the elected leadership still following in lockstep, it is now his party. they will be with him in the midterms and in 2020. that is the assumption we are going with as democrats. my party really needs to focus on those independents, those folks that voted for obama twice and shifted their vote for

president trump. the assumption and the hope is that those are the individuals were looking at to the president and are not comfortable with what they are saying and chime in on the relationship with folks, how it makes unsafe, how it undermines our elections, and with his orders back. shery: the president was to have another meeting with the russian president. will this hurt the gop come the midterms? >> i don't think we want any more meetings with vladimir putin and donald trump. the republican party has a good message heading into november on tax cuts, on the economy, on jobs. every time president. trump brings up rush-hour has one of these summits that gets chaotic, it puts pressure on that. folks want to talk about pocket issues, more money in your pocket from the stacks built. every time -- from this tax bill. every time the president distracts from that, it puts

pressure on running republicans. is the opposition to trade proposals overstated? --is genuinely concerned there is genuine concern, this trade war potentially can it's a problem. kevin: the go to iowa, the heartland, is the ceo opposition disconnected from the real folks in this country? >> i think there may be a bit of a lag. the reciprocal tariffs from china will hit farmers in the midwest, the trump voters. they won't feel it right away but they could potentially feel it and that's a problem. that's why the president should back off. kevin: ryan makes a good point. you are seeing the them a credit party ought to start trying to focus on those independent voters who voted for now former ,resident obama twice

pennsylvania, michigan, wisconsin, ohio. how do those types of democrats make that case on issues like trade and, quite friendly, they are just as much against nafta as the republicans in nature administration is. >> questions about foreign policy don't hit home. that is something that i think we should or want to focus on. it is the economy. i agree that is a very important and crucial message for us. i am from new york. york in a veryw reliably blue state and there are a lot of trump voters of their because it is rule country and they feel similarly to folks in the midwest -- it is rural country and they feel similarly to folks in the midwest about the economy. things like infrastructure, something we have not talked about in a while. there was a provision in one of the early budgets that took some

programs away from farmers, things they were counting on to actually be able to make loans, get loans to expand their businesses. aree types of things they very sensitive to and we have to be able to talk to those voters again. we miss an opportunity to do that before, but we can get back to that. shery: it's not just about the trade tariffs, not about june politics. -- not about geopolitics. putof these issues together, will this change the dynamic for the gop come november? >> i don't think so. the president has done a good job of engaging the republican base. he has also energized the democratic base at the same time. it will come down to independent voters, who will come out on election day and try to appeal to them. as i mentioned, we have a good message about empowering people to find economic success, putting people back to work. that's the message. i don't think that foreign affairs really impacts people in their day-to-day lives.

but it does provide a distraction from the issues we want to talk about. this president continues to provide distractions for democrats to use to get away from our messaging. that's a problem. hopefully, we can stick to the issues. shery: will the democrats take over the house? >> i think we can. if you look at what happened in our new york primary, there is an appetite particularly among millennials. we have a motivated base. that is the one thing we can really hang our hat on. shery: thank you so much for that. ryan williams and basil smith. smilde. this is bloomberg. ♪

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today, taking a hit from disappointing early news -- earnings. julie: we are getting into the thick of earnings reporting's. eb -- earnings reportings. ebay is not on a steady course heading into the busy holiday season. competition is not only online, but also from brick-and-mortar stores. in thesome decline financial-related stocks today. bank of new york coming out saying basically it is spending more. it is spending on technology and other measures. it beat estimates but revenue growth is not what investors have been looking for. american express raises forecast, but not to above its previous range. its vapingis,

products are not catching on as it hoped. device developing in japan will probably not pay off. companies that are reporting misses are getting punished more than they did last quarter. you are looking at the first quarter reaction to earnings-per-share versus the second quarter reaction, seem for sales. we see more deep decline -- same for sales. we see more deep declines. we will be updating these graphics as we go along. on the plus side, we have oil rebounding after recent rocky performance, and regarding sharply. it has to do with comments from saudi arabia, missing assertions .hat it oversupplied demand they said those assertions are without basis and did not try to push oil into the market beyond customer need. saudi arabia said it will reduce

crude exports by roughly 100,000 barrels a day. that announcement turned around oil in such a sharp fashion. speaking of energy, we have to talk about a tactual change masteroftened for limited partnerships, mainly pipeline companies. so we see a surge in today's session. lateulatory order wednesday made major concessions mlps.se so this reverses that to some extent. a laterally for being expressed in the training of these stocks today. shery: thank you so much. president trump facing a growing storm over possible tariffs on imported cars. the commerce department began open hearings today over whether auto imports pose a national security threat while industry

groups say companies are lining up in opposition. .t is more from tom reed congressman, thank you so much for your time. we are hearing the auto industry in the u.s. is opposing these tariffs. do you understand who these tariffs are meant to help? >> was the president is doing is trying to level the playing field. when you have the eu with 10% versus the u.s. at 2.5%, that is fundamentally unfair. this is trying to equalize between the eu and america that trading platform so that it is fair and equal for both of us going forward. shery: yet cars will become more expensive, coupled with higher gas prices that we are already seeing. how will this impact the american consumer? >> long-term, the message is clear. we need the eu and us to come to the table to negotiate these tariffs, these barriers to trade

between the two entities and get us to an even and level playing field. i'm confident we can get there. maybe we can have a zero tariff both ways. to me, that would be a great opportunity for us to develop this industry further. shery: will the american public be patient enough for that to happen? >> that is obviously a great question. long-term, i think we come out of this stronger as a nation. short term, there will be some disruption. but that is the disruption force this administration is bringing to the table. kevin: i was in new york yesterday. andtalk to folks up there airtran to gauge what this means. there's so much political uncertainty. is not totally on page with this. germany is not ok with getting rid of all terror of's. when the eu -- all tariffs. when the eu commissioner comes next week, how does he get the commissioner on board? it is not just getting president trump on board. >> if you think this disruptive

trade policy will go away, that is not the case. we will continue to push the american agenda and we will make sure -- look, all we are looking for is an equal, level playing field. let's negotiate, work out these differences. that will be a strong message to the eu. i think that is a good message that they need to adhere to and listen to. kevin: i spoke with the chairman of the house wayne's committee and he -- house in ways committee -- the house and ways committee. >> when you talk about article one, the delegation of us already -- of authority for congress, i am in support of the checks and balances.

i am more about making sure the president knows we are concerned about the short-term impacts but we stand with him with regard to the positive outcome we are all trying to achieve with an equal playing field in trade partners around the world. shery: we have data from the dallas fed the looks of the total impact of the tariffs. new york will be one of the hardest hit. it is a projected hit of about eight for 10 to real estate gdp real estate gdp. what are your constituents telling you right now? >> there are two different new yorks. there's new york city and the rest of new york. folks we represent are protected by the $10,000 compromise we were able to secure in the tax policy. it is different from downstate

to upstate. what i hear from our constituents is they recognize this disruptive policy needs to occur. the fight the administration is doing something they support and i will stand with him long-term. shery: when it comes to these trade negotiations the president continues to push for, is nafta acceptable if bilateral trade deals are put in place with canada and mexico? >> my hope is that we can do nafta together with canada and mexico. that is the message i sent to their representatives. make the mistake about it, if only one party, mexico, is willing to negotiate, they will get a favorable deal over the canadian negotiations and vice versa. if canada is willing to negotiate, maybe mexico will have to deal with the consequences. my hope is that we resolve this under the nafta framework. russia,earching years,

do you think the president russia.d the quote on >> i think so. there has been no collusion with american actors. it is time to move this chapter of our political life behind us and focus on people today with regards to jobs, the economy and the national security concerns. my hope is the american people here it loud and clear where we stand. collusion, no evidence of meddling, clearly there are engaging in that and we need to make sure that doesn't mess up the elections going forward. shery: always helpful to talk to you. thank you. mark: mission: -- mitch

holdnell has asked to hearings. intelligence agencies have warned that russians will strike back this year after interfering in 2016. automakers, dealers, and suppliers are voicing their disapproval of president trump's proposed tariffs on imported cars, trucks, and auto parts. the head of the alliance of automobile manufacturers testified today saying "the opposition is widespread and deep because the consequences are alarming." the president has asked officials to investigate whether pose a threat to national security that would require tariffs. who would the president like to run against in 2020? ofsident trump says "i dream

biden." considered running in 2016. a spanish supreme court judge has dropped its extradition request for six politicians. in was taken into custody march. ruled hecourt recently could be sent back to us gain for billion, only from misuse of public funds. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ shery: coming up, president trump's they to be the cfpb faces a senate hearing. senatordiscuss with

catherine cortez masto. this is bloomberg. ♪

♪ kevin: this is bloomberg markets balance of power. pick toresident trump's -- the cbp democrats are raising the alarm over her management experience. the democraticof senators on the banking committee who is on the hearing that just wrapped up. thank you for your time today. how satisfied are you buy what you witnessed at the hearing

earlier today? >> everything i have seen today, even the conversation i had with her and my office, i could not get a straight answer from her. that is what you saw today. for somebody who will take the position to run one of the agencies, theive consumer financial protection bureau, that is supposed to be looking after the best interest of consumers when it comes to financial products, we could not even get her to be transparent and accountable about what she is doing now at the omb and her direct actions that she has taken the have had an impact on a number of things we have questions on. i had a number of concerns. she did not alleviate those concerns. at this juncture, i don't know how i can support her and will be supporting her. shery: what is next for the democrats? republicans could support her. do you believe that her appointment will pass? >> i don't know. listen to allto

of my colleagues so i am not sure where they will be at the end of the day. but i will tell you, the question-and-answer period that took place in this hearing and the comments -- and keep this in mind, these are not gotcha questions. these were legitimate questions as part of the advice and consent process we have of the nominees that come before us. we are not a rubberstamp for this administration. we ask questions to make sure they have the background, the experience to oversee these agencies. and what i saw today, based on the questioning from both of my colleagues -- my colors on both sides of the aisle, she does not have the experience, nor is she willing to answer direct questions given to her to even talk about what she is doing now as part of omb. kevin: procedurally speaking, there is not much time on the senate floor to get her through the confirmation.

is it better to have the current situation, the status quo as we speak, or to push for floor time and get her nomination through? >> i don't see a benefit either way. [laughter] kevin: doesn't sound like it. >> her boss, mulvaney, is gutting away the protections we put in place in the agency. as the attorney general for the state of nevada for eight years, i had the opportunity to work with the cfpb when it was created and what they did to protect consumers in nevada, let alone across the country, and it is so crucial. kevin: most people, when they protectionnsumer immigration policy, some of your colleagues noted that

they policy of the controversial immigration separation policy, she was wrapped up in helping to craft that. topart of our role here's determine whether she is a good fit for running this agency, to learn her background, her experience, what decision-making she has had, which he has been involved with. we know and she has admitted to she is involved in the implementation of this administration zero-tolerance policy that is celebrate -- that is separating children and parents at the border. but she would not tell us specifically what you did. we have sent letters to her. she never even responded to the letters from united states senators asking those questions. and that's what you saw today, try to get answers from her. shery: she will get squeezed her time on the floor. that might be also because you have to deal with the nomination of brett kavanaugh for the supreme court.

how are the democrats prepared to fight this? >> i think right now, we are all looking for information about the nominee, about mr. cavanagh. we want to -- mr. kavanaugh. we want to look at his writings. there's over a million documents based on his writings are things that he has put out there, addressing opinions on certain issues. i want to see that. i'm an attorney. i want to see his opinions. i want to see his writings. i want to see what he stands for a particular issues and comments. i think we all have that opportunity is united states senators. i take very seriously the advise and consent authority that i have. so we want to take the time to uncover what he has done and said in the past. that will really require a number of things, to get all those documents, to get the opportunity to go through them,

and have a judiciary hearings so we can question him based on what we find on those documents and partially meet with him. i want to be able to ask him about some of the concerns that , thatady have, know about i want him to address versailles because i want to see how he responds to it. shery: some of those concerns are abortion-rights. you believe that he poses a threat to roe v. wade? >> not only roe v. wade, but a woman's right to choose, a woman's right for freedom with respect to how she handles her health care decisions. i also have concerns about what i am seeing now,'s position that a sitting president should not be held accountable for any violations of the law or any impeachment while in office. i think that is outrageous. nobody is above the law. that includes the president of the united states. those are concerns i have with respect to his writings. i have also seen where he is against the neutrality. again, this is a number --

against net neutrality. again, this is a number one issue that i hear from my constituents, that the internet should be open and not be throttled by corporations of companies. so there are a number of things that we want to talk to him about. the debate going on in your party about treason and russia, did the president commit treason in your view? >> i think many of us are concerned about what we saw. what i saw was a president standing next to putin and basically throwing our country under the bus, not putting america first. he can spin it any way he wants. he can try to walk it back. but what matters was that point in time when he was standing there.

individuals will decide for themselves whether they want a president who will act like a president and protect the interest of all americans and ,tand up for our country or not and abdicate to someone like putin who we know has committed atrocities in his own country and uses whatever tools you can to infiltrate our election process and change our democratic process here and how we vote, which is outrageous to me. i want a president who will stand up to that. shery: senator, thank you so much for your comments today. plenty more coming up. this is bloomberg. ♪

shery: the battle for control of the house food hinge on congressional seats in california. orange county is a republican stronghold in an otherwise blue state, but shifts of

conservative are giving way to some of the most contested house races. see the orange curtain coming down this time? chris: indeed. it was the first time since the that it votedon for hillary clinton. if people know orange county nationally, it is through tv, this sort of lily white rich people at play, but you have seen huge surges in asian and hispanic populations and that is happen -- having an impact on the politics there. tomorrow, we will have katie porter on the program. she's the challenger to mimi walters.

what did they have to do to get in the traditional stronghold of the oc? how does a democrat running orange county? chris: if you look at the 39th district, the retiring republican, we will see the challenger, gil sisneros, he won $266 million in a lottery and he is running as a hard-core liberal, bashing trump, gun control, abortion, you name it, he's got a position on it, and really trying to rev up those people who are frustrated by the trump administration and are more in sync with the rest of california on those issues. his competitor, a long time aid to ed royce will be the first korean woman elected to congress if she wins. she takes a much more conservative approach.

she is applying to local residents' concerns about big government and high taxes. demographic shift you alluded to come if you can that was, just quickly. a large increase in the asian population, korean and chinese starting to win races all across the county, and a huge increase in hispanic populations as well and they are running for office. shery: thank you so much. up, commodities ads, alix steel will be talking about the bear market. that's at 1:00 p.m. eastern. if you missed out on any of our charts, gtv on the bloomberg. this is bloomberg. ♪

alcoa inc. cutting into 2018 product forecast, president trump's trade battle. china's rising lng demands. i'm alix steel welcome to commodities edge.