tv Bloomberg Markets Balance of Power Bloomberg November 21, 2019 12:00pm-1:01pm EST
i'm david westin, welcome to balance of power, where the world of politics meets the world of business. from atlanta on the democratic debate, and also in washington, jordan fabian on president trump closing up the tech community. let's start with tyler in atlanta. we watched the debate, was it a debate or a series of presentations from candidates? say that this definitely did not have as many fireworks as we have seen in the or the -- the impeachment drama to the front row seats. the democrats on stage disagreed on certain things, but held their fire for president trump. david: the goal, should be, i assume, to get someone to vote for a candidate other than president trump. what was the argument they were making that it would get done?
alls.ems to be more small b >> it did not feature the biggest faultlines in the democratic primary, we have seen the debates over health care and taxes. last time -- last night it was more of a united front on issues like climate change, where they have a lot of disagreement with president trump, but agreed to gather on how to deal with that issue. david: thank you for reporting from atlanta. now to washington which has eclipsed the debate, the impeachment hearing. the last day today? >> lastly of public hearings so far. this will conclude the part of the intelligence committee, there could be more closed-door depositions annual move to the judiciary committee where they will hear the articles of impeachment written out by the house, and allow president trump to present his defense. david: we heard from ambassador
really gocan they forward without getting the key players like mr. bolton for example, to show up and testify? hill is testifying today, she is a close aide to ambassador bolton. -- directly exactly communicate with president trump, though gordon sondland there has been a lot of interpretation of the witnesses. , but theye same facts are interpreting them differently. republicans are saying there was no explicit quit roco. democrats were saying there was a clear exchange of this for that, which is what quid pro quo means. david: is anyone changing their mind? >> no. we have seen very little movement from democrats or republicans. so heartless like no house republicans will vote for the impeachment, if they do vote for articles of impeachment.
david: thank you.
now we go to jordan, also in washington, it appears that president trump was warming to the tech community in texas yesterday when he met with tim cook. have ap and tim cook relationship going back a couple of years, they both got something out of yesterday's visit, trump can highlight his jobs agenda by pointing to the fact that apple is manufacturing the mac pro in austin and tim cook got facetime with the president as his company looks to void tariffs that came down in december, at -- in september and the new round coming up in december. david: and it was not just tim reports that have mark zuckerberg had dinner with the president at the white house. the white house to not disclose this dinner it was reported today. we don't know what tech leaders discussed
with the president,
but we know there has been a facebook ad policy which has been much debated in washington related to political ads. it's possible that came up. facebook is trying to roll out a cryptocurrency, libre, that's a possible topic. peter thiel is a conservative trump supporter and it's possible he is acting as a trump sherpa to the tech community. david: thank you. now time to get that check on the markets. joining us now is abigail doolittle. we are down a little bit. out, is starting to stand we have been in this slow melt, three down days for the s&p 500, this is the worst stretch going back to early october with a modest decline over that time period. it does look like a little bit that stands out on trade, which we have been talking about. phase onesay the trade deal does not get done,
and the tariffs could be a material change to the economy. something interesting is that the u.s. to lighten up a little , whichwall way -- huawei was reported on today. areaps the negotiations better than we hear now. maybe a deal gets done. david: and the hong kong legislation look like it would it may give president trump more leverage with china, but it's not clear which way it tried -- cuts. >> it's an interesting point, we -- will be interesting to see if it does give him leverage. based on my knowledge, that's what he's looking for, to strong-arm. i would have to think it would be a real sticking point between the two countries, maybe that's why huawei loosening occurred. so it appears that we are being tough but beneath the surface we
are giving something economic. it's difficult to know. bonds are down a little bit, but over a longer time period, they have been up which speaks to the uncertainty. investors really want something definitive to happen. yet another day of trade. thank you. let's turn to mark crumpton with first word news. >> thank you. as our colleague told us moments ago, fiona hill and david holmes are testifying on day five of the impeachment hearings. holmes revealed that william taylor described a june 28 call with ukraine's president as having strings attached with regard to an oval office visit. he also said he overheard a call two days earlier between president trump and gordon sondland, who then told homes using and i slid at that the president did not care about ukraine. as we have been reporting, presidential candidates squared off last night in atlanta, pete buttigieg climbed in recent
polls, facing criticism on stage from amy klobuchar, tulsa gabbard, and kamala harris. they slammed him with lack of extremes and struggles with african-americans, but he was third in the number of words spoken just the hind joe biden -- behind joe biden and senator warren. in the u.k., after a contentious debate, jeremy corbyn has announced a radical package of new taxes on business and the wealthy, they include financial transaction taxes, a higher court ration tax, and a windfall tax on oil companies. the top 5% of earners would pay more. at the launch of labor's manifesto in central england, he went on the attack against critics. billionaires,, and the establishment thought that we represented politics as usual, that nothing would really change. if they thought that, they would
not attack us so ferociously. but they know we mean what we say. they know we will deliver our plans, which is why they want to stop us from being elected. >> the labour party says it would use the new tax revenue for more than $100 billion in public spending. benjamin netanyahu will stand trial for bribery and fraud. it's an unprecedented development that could doom his career and shape the political crisis that grips ever zero -- that has gripped israel for much of the year. resign, hewill not would have to if he were convicted and exhausted all of it -- all appeals. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists in more than 120 countries. i am mark crumpton, this is bloomberg. david: thank you.
we have to establish the principle that no one is above the law. we have a constitutional responsibility that we need to meet. >> i learned that donald trump does not want me to be the nominee. that's pretty clear. he held up age to make sure. >> this is impeachable conduct and i call for impeachment
proceeding. i just believe our job as jurors is to look at each count and make a decision. >> we cannot simply be consumed by donald. if we are, we will lose the election. david: against the backdrop of the public impeachment hearings in the house, 10 democratic candidates took to the debate stage for the fifth time. some are wondering if we saw a debate in atlanta or more of a series of speeches by the various candidates. from what happened last night, we welcome our guest who is the managing editor of the crystal ball. pick upkyle, let's where senator sanders just was, we cannot be consumed with president trump, where they consume last night? did the impeachment hearings cast a shadow over whatever they said? >> i don't think candidates on the stage were obsessed with impeachment and that in comparison to the other debates, the discussion was more wide-ranging which is a credit to the moderators, there was
more of a foreign policy focus and other issues that had come up, and it ended up being discussed, to sanders point, there are some who thought that hillary clinton's campaign was laser focused on trump's conduct and not enough on her own plans, which might have made the difference in the election, so i see where sanders is coming from. the thing about impeachment is that there was maybe less of an audience for this debate, not only during but after, because there's so much going on in the news and it's hard for people to focus on one thing. whatever change expected from last nights's debate might be even more muted because so much news is happening. even today the impeachment hearings continue. david: there was substance, but did any of it go to the fundamental question as to why anyone should vote or this candidates over president trump?
this is about turning out an incumbent in an economy that's doing reasonably well, is there anyone who has said we should make a change, come to me? >> there was a lot of policy discussion and difference of opinion. i also don't think to the previous point that you made, there was not much of a debate in that there was not a lot of attacks going on amongst the candidates. , biden,t runners warden, sanders, and -- warren, sanders, and buttigieg, the candidates were not mixing up much. one wonders that they should be doing that. the candidates might look at it and say if i attack one of the other candidate it may not benefit me, it might benefit someone else. when you have such a huge field there's a lot of game theory going on and i think the candidates are deciding they are better off not attacking then attacking. that may change when we get to the voting starts.
david: let's go to that point exactly. in each of the debates the media has said there is one person we have to target, vice president biden, elizabeth warren, last night it was pete buttigieg, but i did not see them put the crosshairs on him. why? >> maybe the candidates just don't feel like there's much benefit to them doing that. although i do feel like ultimately, when the voting gets close, you will have to see sustained attacks by the candidates on one another in these debates, and perhaps more importantly in terms of campaign messaging and in television advertising. but again, maybe to candidates don't see much of a point to doing that. this sort of sedate stage actually benefits joe biden, the front runner, in that he has been the pulling leader -- the leader, and elizabeth
warren was catching up, but now biden has reestablished the as leader.-- polling he did not have that great of the night, is mistaken not realizing that mona harris was also an elected african-american senator was embarrassing to him. will not be widely dissected today, there may be more impeachment taking over in terms of news coverage. that's good for biden, there's less of a focus on what seems to be an obvious mistake he made last night. david: we have one more debate coming before the iowa caucuses, between now and then, what will have someone win or lose? how can they change their position? bye buttigieg is winning nine points, if you are trying to overtake him, what would you do? >> part of why he is doing well in iowa is that he has been advertising heavily and buttigieg is well-funded. you will have to see paid media
come into these races to help turn the tide. this reminds me in some ways of the 2012 republican race in which mitt romney was a soft front runner the whole time and there were certain candidates that would rise up and try to challenge him and would fall off . what romney and his allies could do was outspend everyone, particularly through a super pac supporting him and he played whack-a-mole to knocked down candidates. will biden be able to do that? he has not been particularly well-funded and it seems like there's an effort to start a super pac on his behalf. perhaps that could be well-funded and could help swap down his rivals. and maintain that soft front running position. david: how many tickets out of iowa? >> more than you might think. will, and new hampshire, are extremely white states, and the
democrat electorate broadly is more diverse. somebody like joe biden who is reliant on african-american voters may have more staying power than a front otherwise would because the demographics of iowa and new hampshire are so poor for him, but contest are little better later. it's taken a while to figure out this field. two,nk it's more than five, particularly if you have amy klobuchar or buttigieg really perform well. and if there is a split decision in iowa and new hampshire, and they vote for the same person, that person may be a good position. if they produce muddy results that could allow more candidates to hang around. david: thank you. kyle coming to us from washington. still ahead, henry kissinger says we are in the foothills of
david: this is balance of power on bloomberg television. i'm david westin. dr. henry kissinger was the man who went secretly to china in the 19 have a nice to pave the way for president nixon to reopen relationships. with the new economy forum in beijing, kissinger warned that we may see the start of a new cold war. after 40 years of increasingly strong relations. china and the united states are countries of the magnitude
exceeding that of the soviet union and america. the soviet union was not an economically significant country. we had no economic relations to speak of with the soviet union, at all. in the soviet union did not appear on the international scene as a major economic country. china is a major economic country. and so are we. and so we are bound to step on each other's toes, the united history, sawgh its as a minor issue. so now when i see these dramatic side, unfolding on each
there's bound to be influence, despite historical perceptions. in the united states is undergoing an election at the .oment so the people emotionally it's a dominant factor. i hope the people -- the issue will be settled by negotiation. david: that was part of the conversation with dr. henry kissinger at the new economy forum. the new economy forum has been organized i the bloomberg media group. macy's is one of the biggest laggards in today's session for the stock of the hour. the stock is dropping despite the fact that their company says
they have mitigated the effects of tariffs. there are other possible problems and kailey leinz is here to tell us about them. >> you think of tariffs as a problem, especially for tariff retailers, considering 33% of the imports come from china. and for macy's, more than 30% of what they sell is clothing. a possible issue is that it could take seven cents off the earnings for the full year. executives said they were able to mitigate all of the tariffs. it's interesting what they are saying, in part that they have enough pricing power, because they have more fashionable items that consumers are willing to hand, and they pointed to the relationship with their alsoiers, but the results show is that comp sales are declining and have dropped to 4%. their guidance for comp sales and earnings, will decline between 1% and 1.5% and
they thought they would rise to 1%. there are still fundamental issues. david: it sounds like things are going well but not so much. what's really hurting them? we have heard a lot about the retail numbers, how much is execution? >> i think a lot of it is execution. one thing they pointed to in regard to e-commerce is that they have had a lot of issues as they prepped for holiday seasons . they did not see double-digit sales growth like we are used to seeing which is more important to retailers, and they pointed to things like colder weather which came later this year and they are seeing some softer international tourism and slower traffic. they did sound upbeat going into the holidays, they said they were locked and loaded, and that outlook i think is actually what's lifting the stock. but with the comp sales weakness that we saw, you have to question how rosy the picture is. always about the
weather, but now it's also about the technology. we were having more trouble than we thought online with home depot. catch 22, you need the online technology because so much of the retail landscape is shifting towards those online purchases. what do they do? leinz, great reporting. up next we talked to a mainstay of the democratic party and a strong supporter of vice president biden about last night's debate, the former governor of pennsylvania will be here. this is balance of power on bloomberg television and radio. ♪
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>> debate intensifying on day five of the impeachment inquiry. morning lawmakers not to believe what she described as a fictional narrative. the own a hill was referring to allegations that it was ukraine that interfered in the 2016 u.s. presidential election and not russia. >> i would ask that you not promote politically divisive falsehoods. as republicans and democrats have agreed for decades -- playing an important role in our national security. i refuse to be part of an effort to legitimize an alternative narrative that the ukrainian not russia attacked us in 2016. mark: she also testified about raising concern over rudy giuliani's actions on ukraine with then national security advisor john bolton. eddie gallagher will not be
losing his navy seal designation but the navy says he will face a review. gallagher was acquitted of a murder charge in the stabbing death of an islamic state militant captain. he was demoted after a military grand jury convicted him of posing with a corpse in 2017. house speaker nancy pelosi has sent a bill supporting hong kong protesters to president trump's desk despite chinese warnings of retaliation. the president is expected to sign it. the legislation passed in the senate with report from -- support from all but one republican in the house. the move mayi says undermine efforts between washington and beijing to strike a trade deal. says hislian president government is in discussion with arab leaders to transfer its embassy in israel from tel aviv to jerusalem. the president called the potential move symbolic but
worth a lot for those who believe in god. previously a has pledged to move the embassy but that was put on hold as brazilian meat exporters feared losing a market in the middle east. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg news. david: there was another democratic debate in atlanta last night, one thing that did not come up was the ratification of the usmca, the successor to nafta. that does not mean it is not on the minds of those in washington or farmers and manufacturers across the country. we welcome senator mike braun who is a republican from indiana. thank you for being with us. where are we on usmca? the speaker spoke the camera and said " we may not make it this
year." sen. braun: that is the one thing about this place. i don't know of anyone other than speaker pelosi who is playing political footsie with it that does not see it across the finish line. many congressmen and blue states want to see it done. there is an impact on agriculture and manufacturing. one of the casualties of one things get so politicized, i think that as a feather in and shet trump's cap will want favors for it. she is probably hedging her bets on how that will give her play with the impeachment inquiry. david: we hear there are people even in her own caucus, particularly the freshman congressman who got elected from red districts who would like to get this done so they can go back to their districts and tell them they got something accomplished. sen. braun: there is a political cost to this.
this should have been done to her three months ago. the fact that it is lingering has that one reason, how'd you use it for leverage, is it good or bad for the impeachment saga, and sadly that is where we are at. if that does not happen soon she will have some real political costs associated with delaying it. david: we are talking with senator mike braun, a republican from indiana. part of a bipartisan caucus trying to address climate issues. we heard from bill gates overnight in beijing saying he does not think a carbon tax is doable. are you interested in that as a possibility to address climate? sen. braun: chris coons who initiated the idea had plenty of democrats lined up and that is because they always outmaneuver us on identifying the issues. their only solutions are more government bureaucracy.
got rolled on obamacare i think it is important that we are part of the conversation. i have been a conversationalist -- conservationist my entire life. it was easy for me to be there -- the first republican. when you take a risk you have marco rubio, lindsey graham, we have a good representation now on an issue that if we are not part of it will get rolled again with something crazy like the green new deal. i am coming at it to use technology, innovation, something we can afford that is practical. reforestation, conservation methods, trying to capture .arbon looking at fossil fuels, we have a lot of them. when you use them you put co2 into the atmosphere. david: it's the problem with a carbon tax political or theoretical? theoretically carbon taxes
address the externality. the government is not prescribing what people do, they are saying this is what it costs, you decide. sen. braun: it is political. the big difference between , the industry is fighting its own reform every step of the day. they risk being a business partner with bernie sanders and medicare for all. climate, the to industry and its marquee participants are interested in addressing climate issues including a carbon tax. in ourd never work conference until all of the "ayers in the industry said that is better than the regulation we have been dealing with." you would have something in place that you could rely on for down the road. until the industry says " this is what we want across the
board" i don't think you will have our conference interested in it. all of these things need to be on the table for discussion but practicality, low hanging fruit, and being part of the conversation are what the important features should be. david: a very helpful, director answer. mike braun is a republican from indiana. let's turn back to the democratic debate. have rf -- ede rendell. give us your overall impression of what happened in atlanta last night. >> most of the candidates did well. the winner if there was a winner was 80 club shark -- amy klobuchar who comes up with great one-liners and presentation. i don't think it will change much. kamala harris had a great night.
was not quite as charming as when he was the front runner but that is to be expected. joe biden did fine, he had that one gaffe at the end, but who cares? on the responses to the questions he was guilt and he had an excellent closing. i think he got stronger as the night went on. elizabeth warren and bernie had solid performances talking about the progressive mantra, issues and ideology. it was a good debate. in the aftermath of nine hours of hearings i am not sure how many people watched it. david: that goes right to my question. the fifth one now, i am not sure how many people are watching. we have heard a lot from these debatetes, will the next make a big difference in who we select among democrats or who we elect as president?
>> i think it will make a difference for sure. -- for sure with the democrats. there still has to be the winnowing out process. , cory the december debate booker set at the end he has not qualify for the december debate and gave his website. if cory booker falls off the charts will that help kamala harris? maybe. will it help deval patrick? maybe, but i don't think last night changed much. david: you mentioned pete buttigieg. talking to the former governor was oneylvania, there interesting exchange about the buttigieg and if he was experienced enough. this was his response about coming from a moderately sized city in the u.s.. -- midwest. >> do i have the right experience to take on donald trump?
nott that it is traditional, establishment, washington experience. i would argue that we need something different. thisder to defeat president we need someone who can go toto that comes from the kind of communities he has been appealing to. david: how about that? i know you support joe biden, but who is the best person to take on donald trump and appeal to the people donald trump appealed to in 2016? you don't have to take my word for it. state, joein every biden does better against donald trump than any of the other candidates. better than bernie and elizabeth , better than mayor pete, better than kamala harris. in midwestern states with working-class, blue-collar democrats, that is joe biden's wheelhouse. that and african-american voters. he appeals to them and is one of their own.
he is an excellent candidate for the fall. the only question i have is can he win the nomination? . it is a long, hard fight. there are many ups and downs as we go through the next several months. if joe biden is the nominee -- i think one thing he said last night was particularly telling and that is an argument i have been making. donald trump let us know who he fears most of all the democrats by asking ukraine to give him information or say they were investigating joe biden. he made it clear that biden is the candidate he fears the most. that is one thing that was established in the debate. joe did a good job of bringing that perception home. david: that was former pennsylvania governor ed r endell. we are told that 5g and the internet of things will change all of our lives.
david: this is balance of power, i am david westin. most of us have not thought much about electromagnetic spectrum's since physics in high school. not a week does by where there is news about how we will use specialist -- precious spectrum to support cellular technologies. jessica has been working on these problems as one of the fcc commissioners who will decide how to ration out spectrum.
we welcome her from washington. welcome, great to have you with us. give us a sense of the overall situation. we have a certain amount of electromagnetic spectrum and you license it out -- you licensed it out. what are the new demands that are coming in? have wireless phones and we rely on them like never before. we download our lives into them and we cannot imagine what it would be like to not be connected at all times. all of those activities have consequences for our spectrum and our airways. the airways all around us are some invisible infrastructure and it is important that we zone them in a way we can power our phones and the next generation of wireless activity known as 5g. there will be more demand on our airways. we need to be smarter about how we so their ways and make them available for people who want to
use them. david: one story that hit the bloomberg was intel sat and allegation -- allocation of c-band. i believe the commission has decided it has to be a public auction? their stock went down on the news, what was that about? >> as we move to 5g we will need more airwaves to power the next generation of wireless services. some of those airways r&a sweet spot known as mid-band airwaves. that c band is right there. over time the fcc allocated those airwaves to satellite services and we may have offered so much of those airwaves to satellite services that they can return them and make them available for more terrestrial uses for wireless that is what is at issue, what is the best way to make that happen?
the fcc was exploring a private airwaveshose but it has looked legally complicated and hard to do. capitol hill suggested we should do this through at public auction. the fcc chairman has announced he would prefer a public auction withyear and we will work folks on capitol hill to see if we can do just that. david: one other dispute that has come up is the six gigahertz dispute which appears to be wi-fi companies like broadcom versus utilities who say they need the spectrum for emergency communications. what is that dispute about? >> our airways are getting complicated, when there is a use and someone proposes a new use there is friction. wi-fi isd spectrum or a part of our economy that is important so we are looking for places to grow wi-fi. the six gigahertz band is one of the places we would like to do it because it is adjacent to
existing spectrum use for wi-fi. there are utilities that rely on that band. we will have to figure out how we can do more unlicensed and wi-fi along with protecting utility activities from unreasonable interference. the fcc started a proceeding on that, it is admittedly a heated one. we are still having discussions and we are also looking at other places for wi-fi including the 5.9 gigahertz band. david: give us an extent to which -- give us the extent to which partisan politics enter this. president trump says it is a priority for the country to go into 5g. how much of this is a partisan issue and how much are republicans and democrats united on the goal of advancing 5g? the united we want states to lead when it comes to
this next generation of wireless technology. when it comes to tactics we might differ. i am a senior democrat and when i look at the administration right now we do not have a master plan for 5g service. you saw leadership from the senate, the national security advisor in the white house saying that we need a master plan when it comes to 5g. fcc fighting with the department of commerce and department of transportation over airwaves. sendingthe president out tweets about 5g. we need a master plan. other economies are making progress and we don't want to fall behind. calls onere have been election security, we should have a sorry for that, is there a prospect that we would get someone who would centralize this process and have a master plan for 5g?
>> that sounds like a good idea to me. i think we need a master plan when it comes to thinking about 5g technology and artificial intelligence. other big countries around the world have them and we do not. the united states is at serious risk of falling behind in this next digital revolution. i think long-term planning is a good place to start. david: many thanks to her. we will have more with her on our second hour on bloomberg radio. this is balance of power on bloomberg television and radio. ♪ adio. ♪
beijing. >> i think we are having a trade skirmish. i think the two sides have , there isnts on trade a lot of trade going back and forth. the united states is receiving the goods that we need from china to have a fully functioning economy and the economy is functioning well. i hope we get a deal done and i think it is in everyone's interest to get a phase one deal done. >> supply chains have moved from china elsewhere? >> that is a natural business cycle and that makes sense. maybe companies got too concentrated in one market and we are seeing more global diversification of the supply which in the end makes companies more diversified and where they get their products. >> [indiscernible] they have an economy that seems to be holding up.
reserve is an independent agency and protecting the independence of the federal reserve is of the utmost importance. what jerome powell and the other governors have done is a good job of trying to walk the line of being independent. they are making their policy decisions based on the data they are seeing. they are always trying to figure out what is going to go on with the economy in the future, i think jerome powell and the other members have been making the right decisions based on the data they have at their fingertips. central bank the to the world and not just america? >> the fed is the central banker to the dollar and the dollar is a key trade currency in the inld, global commodities are dollars. what the fed does does have an impact on the rest of the world. david: that was former nec director eric cohn.
the new economy forum is organized by bloomberg media group, a division of our parent company. coming up on bloomberg tv it is commodities edge with alix steel , she's looking at the rally in oil prices. coming up on radio, a political crisis paralyzes israel. we are live in israel as benjamin netanyahu gets indicted as they country faces a third election without a government. this is balance of power on bloomberg television and radio. ♪