tv Bloomberg Markets Balance of Power Bloomberg September 4, 2018 12:00pm-1:01pm EDT
hair and here are the top stories. order in the court, senate hearings on the nomination of judge kavanaugh with a bang as democrats complained that documents have not been turned over. no canada, nafta negotiations failed to reach a's a deal by the weekend. trump says he will be fine if canada is left out altogether. withmany begins in earnest an audience more divided than ever. ♪ david: there was a day when supreme court nominations were partisan fray. but no more. as hearings today can i get past -- beforeuction be
democrats and republicans were passing heated words. caravan, it looks like a food fight at the beginning. mob rule is how it was described here on avenel held. as democrats have taken issue with the release of 42,000 documents released in just hours before this hearing was underway. the have been calling on senate judiciary meeting. to give more time to review the documents. full release of documents from judge kavanaugh's career, which spans back into the bush administration. pick that often have the reserve from all republicans because the supreme court could rule on a bunch of different cases. senatelisten to what the
judiciary committee said, chuck grassley. >> this committee has more materials from judge kavanaugh's nomination than on any supreme court nominee initially. senators have had more than enough time and materials to adequately assessed judge kavanaugh's qualifications. that is why i proceed. >> the math makes it difficult for democrats to stop this car station. they put out a statement suggesting that democrats have been obstructionists during this hearing. we should point out that the first senator to open with comments is senator kamala harris. . >> i am not exactly sure who is playing for what her. chairman grassley will probably get this nomination through anyway. justid he do sure practice
hours before the hearing? >> he says he had to do this with regards to how the law is structured but also dated with how the documents themselves or being handled and how administration officials within the government had asked them to handle these documents. previous nominations have been able to be more transparent. the republican transparency to that is a coffee shop -- a lot of bipartisan bickering. david: that is before we get to hear from brett kavanaugh. we have to talk about trade and little bit. we have president trump saying i'm going to pull a nafta. what are we hearing from republicans of the hill? they injured his legislation to walk back some of the
president's power on this. whether or not that would make it to the president's desk remains to be seen. the president tweeting out for this is an of richard trump goes to the head of the afl-cio. the trade policy is running rampant through the parties are now. jonathan: we will be back, i suspect. u.s. stocks are going down today. thee: not the news for bulls. amazon continues its upward march after the evaluation hit a trillion dollars. perhaps we had a cuter-trigger cell.
did not see that straight leg downward. another interesting milestone for the company, the price of us thought, the higher you can cast booking holdings. large cottonother tax stops. downgrading the stock, he is changing it from a neutral to a buy. it is still above where it needs to be right now. he says that the talks is some grew and eight heightened regulatory sky mittens. also updating and verizon here. that is going from neutral to buy.
it may be too late to add an official source to the 80 -- to the issue. analysts have largely been positive on the move for its long-term implications. we are watching metals today. back, gold,ull copper, and many of the mining stocks are weakening today. very gold is also on the list of underperformers in a. david allen coming up in a labor day mark the unofficial beginning of the real race for the midterms. antalk about it was information strategist normally come back.
♪ david: this is bloomberg markets balance of power. it has been a morning of and graham protest on capitol hill. gotcrats unsuccessfully documents for brent kavanaugh. house republicans may drop plans for a second phase of tax cuts. and the plan was to force democrats into a difficult about, but that that buyer. the new proposal would make deductions permanent and it
could hurt high tax states like new york, new jersey coming california. haqqani was 71 and has died. 2012, the haqqani network was declared a terrorist organization. gordon will turn into a hurricane before hitting landfall tomorrow. i'm some oil companies have started evacuating crew from offshore rigs. 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. this is bloomberg. ♪ david: as we enter the home stretch, up the new polls show continued strong disapproval of president trump with a smaller portion approving his performance.
i'm not sure we have seen quite a phenomenon like this. the president registers, he has some high -- some diehard supporters, but a strong portion of the country disapproved. how will that play in the midterms? >> it is possible for the people dislike the president but not the local representative. it will have a bearing on's dates where there is a strong trump appeal, west virginia perhaps, some states in the midwest and the south, maybe texas, but overall, i would not overplay the fact that trump is
having strong disapproval across the country. hiss still very strong with basin will be helpful to many members of congress and members of the senate in these midterm elections. affect turnout? i want to play something for you. i'm sure you watch john mccain service on saturday. i want to play for you the segment of his daughter. america doesn -- not need to be made great again because america was always great. david: could that affect the midterms? >> i don't think it moves the needle either way. meghan mccain is certainly her father's daughter, very much like john mccain, unbridled, saying what she thinks and people having a great deal of respect for her. at the end of the day, a does not move the needle.
even in a state like arizona. today,will be inspired we have massachusetts and delaware holding their primaries during you have one open seat in massachusetts and highly democratic -- highly contested democratic races. you have a senate campaign that is shaping up interestingly on the democratic side. to i dosee what happens not see any movement on the needle with regards to turn out for the midterms. david: there are a lot of exciting race use. a high level of people say they are committed to the area we will see how that turns out.
this graph shows a comparison of the number of seats republicans need for the house compared to vulnerable seats. are vulnerable more than typically. >> that's right. most of the polling data shows the house is a you to turn and be in democratic control after the november elections. i think that is very accurate. in states like pennsylvania, that is not a referendum on the resident or anything else. of pennsylvania, the court chose to redraw the district lines.
those seats are likely to flip democrat. david: you know washington well. assume the house does go to the democrats. what does that mean for washington? >> it will probably be more partisan. democrats, in places around the country, especially the northeast, dimmick rats will ioding antitrust -- riding anti-trump fervor. to be concerned about the desire of members of the house wanting to move for impeachment. that will likely be one of the things at the top of the democratic agenda, if and when
the democrats control the house of representatives. ,avid: if things work properly one of the things we took away from the opinion polls is a 63% approval rating for mueller. does that undermine the president's attempts to take away from mr. mueller? >> the president has been successful at chipping away at it. , initially,ybody phil bob mueller was above reproach. i still think he is. obviously, the president of's tweets have chipped away at him a little bit but many aleve that job, ising a good unbiased, and is doing the right thing. at the end of the day, bob mueller is smart to do what he is doing, being very deliberate, very smart. he is not talking to the press, doing it by the book and letting the cards fall where they may.
david: what difference does this all make? a similar house goes to the democrats, are there major issues the president needs to get through? will it really reverse any of the truck policy? >> i don't think they will be able to reverse trump policy. they will be a thorn in the democrats -- in the present' aside. trumpunderestimate donald and his ability to work with both sides of the aisle. he is a very transactional president. each legislative item is a transaction and he is willing to bargain. don't suppose he will be stalled on transactions he wants to get done coming toward. david: thanks so much. the two have you. still ahead, tech execs had back
-- good to have you back on the program. jarvis.d to jeff you know him, no doubt. we've talked about whether we should trust government or the -- the platforms. wrecks like it or not, love them or hate them, the landforms are our best ally against russian meddling. the government has information, too, they need to share with industry. the government can't seem to get together to work collaboratively to solve a national problem. wanting theebook finger i government and the government pointing the finger at facebook and the truth is somewhere between.
david: where is it in the government where they can cooperate effectively with the facebooks of the world? .> they have great insight they see will is being built overseas and what they are doing to our systems. shotook and twitter have a on what is happening to their systems. you can get a better sense, a radar picture, what is happening in cyberspace to us for the security's god -- the security side and the disinformation site david: how confident are you that the u.s. government is devoting resources necessary to
protect us in the midterm elections coming up from russian interference? use sock kiersten nielsen get out there and say that our democracy is in the crosshairs. the system is blinking red. the director of fsa, the new general is there, also very strong on this. over have been concerns the need of a cyber coordinator in the white house. but our national security apparatuses concerned. there a central person coordinating this? that is one of the things we learned about 9/11, we have to coordinate our intelligence. >> there was a cyber coordinator at the white house. bolton decided he would reorganize a national security council to not maintain that position. but you have to have 70 take
this action. jason nelson just got that role overseas. the question becomes how are these entities working with industry? managementa new risk center? that is a good first that. there willou predict be anything coming out of a hearings that will move the ball forward? or is this for show? >>. i think our folks -- forward? >> i hope it is not for show. you near-term flight blinking -- you hear things like blinking red. -- this is a national problem directed at as by nationstate.
two deal with as a problem. we have to hit has to the nonsense. this is russia attacking our nation. david: we have seen this in ukraine.d england, in is there a sense that other governments are doing a better job, something we could learn from? >> it is hard to know whether anybody is doing a better job. we need to prepare and do a better job compared to the last election. there is less collaboration between industry and government. that has been good for our democracy and for business. at the same time, where we know it is a nation's they coming after us, just like it would be china coming after our intellectual property, we need
have -- we need collaboration. it is an important africa has to be done now while our nation is under stress and david: ok, thank you so much. up next, we head back to washington to hear from someone who strongly supports brett kavanaugh. only does he support him, he put him on the list to be nominated. we will talk with him about what these hearings mean so far. this is bloomberg. ♪
he reportedly will name former senator jon kyl as a replacement for john mccain. in the meantime, cindy mccain has tweeted that jon kyl is a dear friend and it is a great tribute to him that he is prepared to go back and the public service to help the state of arizona. it's not confirmed but the reports are that he will be nominated to replace john mccain in the u.s. senate. he served john mccain and he rose as the second highest level of republican the senate. and establish senator maybe going back. to first word news we turn to kaylee. rahm emanuel, near chicago, says he will not -- on 2019. the mayor has been a job of a lifetime but it's not a job for a lifetime, he was part of obama's former beat -- chief of staff, and he has been in office for more than seven years. the environmental protection isncy's internal watchdog
criticizing the agency for spending millions of dollars around-the-clock security for former head of the agency's got prewitt. they say that they failed to document why he needed more than double the security of his predecessor. the iranian president says his country will continue exporting crude oil despite u.s. efforts to stop it with sanctions. speaking to crude oil officials, he said oil is in the front line of confrontation and resistance. the u.s. wants to reduce iran oil exports effectively to zero with renewed sanctions in november. offensive is -- offensive and distasteful, that's how aretha families franklin -- aretha families -- aretha franklin's family is describing a eulogy at her funeral. franklin's nephew said the eulogy copy entire family off guard. global --global news, 24 hours a
day on air and on tick tock on twitter, powered by more than 2700 journalists in more than i'm kaileyes. leinz, this is bloomberg. hearings aremation underway for judge kavanaugh to replace justice kennedy on the supreme court, with fireworks earlier today between republicans and democrats sparring over whether the relevant documents had been provided for democrats to assess the candidate. >> i think we need to have the time to finish it, and for the first time in four years, to have someone say there is a claim of executive privilege when the president has not made such a claim, puts everything under doubt. what are we trying to hide? why are we rushing? david: we are looking someone and only supports judge kavanaugh but he's been recommending him as a strong candidate for some time. john malcom, the vice president at the heritage foundation. it's good to have you back with us.
>> it's great to be with you. answer the question from pat -- from: answer the question pat leahy, it's pretty clear that he will be confirmed so why republicans being so guarded about reviewing the documents? >> i don't think they're being particularly guarded, twice as many documents have been produced for the kavanaugh hearings as for any other previous supreme court nominee. you heard someone say, and i have no reason to doubt it, there have been more reasons -- there have been more documents produced for judge kavanaugh than the previous five nominees combined. the best indicator of the as to whatissent kind of a justice someone will be is what kind of the judge they have been. but they don't want to examine the 307 opinions he has written and the 391 opinions they have joined. and they have also set the gold standard that they use is the apa and it has unanimously rated him as giving the highest qualification.
with respect to these documents, number of them were when he was the staff assistant to the president. and so they are sensitive with they movedecisions, across brett kavanaugh's desk before they reach the president for decision, and often that's the kind of core executive privilege material that is universally recognized. just as when elena kagan was nominated, none of her documents from when she was solicitor general were turned over to the those involvedse a claim of core executive privilege documents. there is plenty of documentation for this committee to examine to figure out what kind of supreme court justice he will be. david: let's be clear on the facts, more numbers of pages have been turned over, that's because there were more pages to turn over as a percentage of the total body, a smaller percentage total have been given. the public opinions he have written, those are available for every judge.
and i can't imagine they would say that they never have the documents from the democrats would written opinions. >> could you say that again? nobody on the republican side said we needed to see anything other than the opinions she wrote, that was never suggested about elena kagan? >> she it only been a judge, that's correct. >> but she had to turn over all the documents that were relevant. >> the documents that are being withheld or documents that are core executive privilege documents. david: john isner core executive documents, then why did the dumb 42,000 pages on them in the last few hours -- john, if they are core executive documents and why dump 42,000 pages on them in the last few hours? why do they need to do this? all, all the people demanding these documents of arctic him out and said there is
no way they will ever support judge kavanaugh, setting that aside, the bush library has been doing the humans were turning over these documents to the white house, which also has to review them to see whether or not they contained privilege material. the white house is turning the documents over as expeditiously as they can and i think democrats are going to look for any documents not turned over and say, that must be the smoking gun. that does not make sense to me. david: i don't see how any of this has anything to do with what kind of a supreme court justice brett kavanaugh's going so what we doing to the process yack we are making it a sideshow. i'm blaming democrats and republicans and we not getting to the essence of the process, are we? fair.t's it is a circus what is going on in the senate judiciary committee hearing room. the process to confirm any kind of judges, particularly supreme court justices has been politicized.
both parties are to blame but i'm not sure you can put that genie back in the bottle. david: and i'm not sure the supreme court is better for the experience. i suspect you agree. >> i would. david:'s or anything else you want to say about judge kavanaugh? i know -- is there anything else you would want to say about judge kavanaugh? is there anything we should know that we don't already know? i think you superb. he's highly regarded by judges who have been appointed by democrats and republicans, 13 of his opinions on the d.c. circuit court of appeals turned into majority opinions of the supreme court, nine of those had been kavanaugh dissents. he is highly regarded by spring court justices and he will be an outstanding justice in his own right. david: and i want to turn to jon kyl, juan told has been helping judge kavanaugh with this process. the reports have just come out, that the governor of arizona is about a name jon kyl as the
successor to john mccain. there is a tweet from cindy mccain saying it's great to have him back in public service. what do you make of that if it turns out to be true? >> he's a steady hand, he's been a congressman and senator from large number of years. he can hit the ground running on all of the complex issues that come before the united states senate. for brettn the sherpa kavanaugh. he has been shepherding him to all of these meetings with senators and it will lead up to the confirmation hearings. there is little doubt as to how he will vote in terms of judge kavanaugh. senator,experienced and whether he chooses to run for reelection, in the meantime the citizens of arizona will have a steady hand and we will have a lot of other options when he comes up for reelection. david: it's always great to have you on, particularly on the subject of judge kavanaugh. you know him well and his record. that is john malcom of the heritage foundation. coming up, canada hangs in the
♪ david: this is bloomberg markets, balance of power. friday came and went without a nafta deal. with canada saying it is still trying to get a deal and president trump tweeting he will go forward with or without canada. riesling what's at stake, we welcome eric farnsworth. welcome back to the program, tell us what is at stake, if they go forward and canada drops out, what does that mean? having meagain for on. it's huge, this is the top
trading relationship that the united states will have with any other country in the world. and the way the nafta has developed, over the last 25 years, with canada and mexico. you know how supply chains that are fully integrated across north america. not just on a bilateral basis. going forward with an agreement that excludes canada, cuts off our own nose to spite our face. economic trade agreement, it's a vital relationship and a vital security relationship with canada. there is a huge amount at stake. david: there seems to be a fair number of moderate republicans who tend to agree with you and are saying that we cannot leave canada out. can the president do what he is bent on doing, which is going ahead without canada? >> it's unclear, according to the trade promotion authority provisions, which congress gate to the executives to negotiate or renegotiate nafta, it's on the basis of a trilateral agreement. it's unclear, legally, whether
the president could do this. that's something that congress will have to resolve based on its own prerogative. one thing that should be made clear, canada needs to be a part --the agreement, boast from both from republicans and democrats on the hill, and even from the labor movement. leaving canada out is a high risk maneuver, not just economically but politically. i am that was said and he was tweeted out by the president and it was not favorable. is it clear that there is a solid agreement with mexico? have a buttoned-down? agreement to agree with mexico. the u.s. congress has been notified that between now and the end of this month, the u.s. and mexico will put together the formal text of the agreement. that will be submitted to congress. have a final
agreement, and i have set in the past that where we are is probably in the bottom of the fourth or top of the fifth of a nine inning game. we have not begun to talk about congressional ratification and all of that that comes down the road. but there's a long way to go. david: do we have any men on base? are we making progress? are we narrowing the issues do we know that there are fewer issues than there were a week ago? are unquestionably narrowing issues, particularly in the autumn sector. we can have an argument about whether what we agrees helpful or harmful, particularly from the consumer perspective. there is agreement in principle. the issues have been narrowed in terms of what continues to be discussed. , is thatem with canada some of the issues that remain outstanding are some of the most beenht issues and have since the original nafta was negotiated in 1992 and 1993. these are difficult issues and they cannot just be ramrod it through.- ramroded
it is unclear how we will come out of that. so talk about agreement in principle, we don't seem to even have that in china, are we making progress or is the administration putting it on the back burner? >> i don't think it's on the back burner, the president has indicated that as soon as this week the u.s. could levy as much as $200 billion more in tariffs against china to go with the 50 billion already in place. this is something that i think is going forward to try to pressure china on north korea and also addressing the trade issues that are outstanding and changed chinese behavior on how they organize their economy. these are difficult issues. what a that announcer to do together is introducing huge amount of uncertainty into the u.s. trade agenda going forward. that, coupled with things like a strengthening dollar, are potentially undercutting gains
from tax reform and other things going forward economically. these are all related and we will have to see what the president assad to do. david: eric, great to have you. america's second billion colin -- second trillion dollar company is at the top of the hour, amazon's shares are spiking, pushing the company briefly beyond the market value of $1 trillion. >> $1 trillion at market capital, and we seen earlier today, joining apple at the top, we will show you the two stocks. back over $1 trillion, in terms of market value. what i have been reading into what analysts have been saying, what's impressive is the speed with which amazon has reached its milestone. amazon was founded in 1994 and apple sounded in the 70's.
the company has added $420 billion to its market cap just this year. the shares are still some of the priciest on the s&p 500 at $2000 a share. it's a big achievement for jeff bezos, i have another chart for you, it's a function, you can see jeff bezos there at the top. he is the richest person in the world, and he founded an online the book -- an online bookselling marketplace in his 1994.e garage in it averaged $200 billion in annual sales. david: and amazon is not being summoned before the senate intelligence committee. >> that's right. david: they don't into have the same government regulatory issues. ,> the president has tweeted
he's not exist -- he's not necessarily in the club what the president at the moment but the regulations are very different for big tech companies will talk about the likes of facebook, instagram, and the social media companies. one of the things being talked about is how meaningful this is. once the extent has been quite she is not sure how meaningful it will be. amazon --n dollars on a $1 trillion bet on amazon today is a much bigger better in the future. the the jeff bezos take payoff and make it work that trillion dollars? david: the question is always expectation of future growth. >> and especially true with amazon. avid: thank you am a --emma, where happy to have you with us. coming up we will talk about colin kaepernick and nike's bold
david: this is bloomberg markets, balance of power. colin kaepernick, the quarterback for the san francisco 49ers was in the news for the -- in the big way. ownersges that nfl conspired to keep them from working for kneeling at the national anthem, and as a new part of the campaign for nike, tweeting the campaign slogan, believe in something even if it means sacrificing everything. , thelcome deirdre lepore former vice president and medications officer for ge. we want to read your tweet, because you tweeted this morning. that nike'sne think marketing team is stupid or not working with data? one of the most valuable brands
of all time, they understand their brandon audience. a calculated risk and one on the right side of history. so you approve. you,'s good to be with this is one of the most powerful brands in the world, it's the top apparel brand and they do everything with great deliberation. this is not something they would wake up one morning and decide to do. they have intense competition for the urban consumer. this is a great move, they have some short-term pain, we saw that this morning in the stock but i think it's a good long-term move. david: and there's some backlash, even on twitter. i'm sure you've seen it, i will not buy nike i will buy under armour. there is some of that. the question is, who is the audience for nike? what nike cares about is who goes into their stores and online and buy their product. they understand their audience, so well, that i'm not sure that those are the people who matter
to nike which is why they decided to do this. david: there's a piece on the bloomberg and it will surprise you, nike has gotten $43 million worth of media exposure, free, by doing this. does that square with your experience? >> yes. in today's world, you cannot stand in the middle-of-the-road. .ll you do is get hit it will not get you what you need, and will not get to the attention you need. it will not excite the consumers, particularly the millennials. i think all of this free attention is really going to excite their core consumers. the audience they care about. it has always been a brand with purpose, they backed serena williams after the french open criticized her catsuit. they have always been a brand with purpose, they just put out high performance hit jobs --hijabs for female muslim athletes. david: serena williams came out
with a tweet, saying she's really proud to be part of the mike -- the nike family. herthere was a picture from younger days. take it from another point, the nfl has a brand involved as well, they were going to have this lawsuit that is going to trial. how does the nfl need to position itself with its core audience? the nfl is not handled this well. they have a big problem as they head into the season. they have a game this thursday and they still don't have a final decision on how to handle the national anthem. get with the players and figure out how to give the players the strong that in ahad to do way that pleases fans and players. they have a long way to go. nike is an important branch of the nfl, so imagine the nfl is not too happy with nike right now. david: i imagine the same thing, at the same time, the core
audience for nfl may be different from the core customer from nike. the nfl may be more concerned about who would normally fall in the president trump base. >> they absolutely are, which is why the initial reaction was to say they were not going to censor players during the national anthem. know,estion is, as you the tv habits of young people and how people are viewing live events changes dramatically. the big question is whether this is about the anthem or the evolution of media in general. for thehat does this do brand of colin kaepernick if i can refer to it that way? we are so polarized in this country right now, there's going to be a group of people that think that he is a very negative force and anti-american. but i think this essentially makes him a hero. a modern-day version of the
civil rights movement. it gives him a much bigger platform than he had does go days ago. -- two days ago. david: it's fascinating. you had to think about these things. >> we did, one of the big factors into these decision-making makings on these reputation issues for companies is employees. a ge we have 300,000 employees all over the world. , we have 300,000 employees all over the world and we hear from them. david: deirdre, thank you. coming up, doug ducey is about to name senator john mccain's replacement. we will have that next, this is bloomberg. ♪ this isn't just any moving day.
show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. >> i'm kailey leinz, let's get to first word news. former senator jon kyl will fill the senator seat left in the
doubt -- with the death of john mccain. 2020 -- affect a run in he is not expected to run in 2020. he spent 20 years representing the sea before becoming an attorney and lobbyist. abiola repping for senate confirmation of brett kavanaugh. chuck grassley refused to the democrats demand to adjourn the meeting, democrats wanted more time to review the documents they received over kavanaugh last night. the judge in paul manafort in a trial has not decided to question the jury. the former trump campaign chairman is accused of acting as a foreign agent on behalf of ukrainian interests. convicted on eight counts of tax and bank fraud last month. africa's most industrialized nation has entered its first