tv Bloomberg Markets Balance of Power Bloomberg March 6, 2018 1:00pm-2:00pm EST
balance of power." set topresident trump is square off with gary cohn and others in his administration over steel and aluminum tariffs. a last-ditchching attempt to get the president to scrap the plan. the prime minister of sweden is due to arrive at the white house this hour, the first eu leader to meet with the president following the tariff announcement. chemistry this leader get the president to change his mind -- candy swedish leader get the presidential changes mind? south korea says north korea may be willing to give up its nuclear weapons. is it a breakthrough, or more empty politics from the kim regime? trump tweetednt this morning that he wants strong dialogue before making a final decision on the proposed
tariffs, and he is getting just that, strong dialogue. speaker right reiterating today that he is opposed to across-the-board tariffs. we welcome our washington. chief craig gordon to report on where the story is headed. i hope you know, craig. the president meeting with prime minister netanyahu saying he is not backing down. purdue,nt to air, david georgia senator, says he will change his mind, the president. which is it? onig: i'm with paul ryan this one in thinking that balance of the sticking to his guns. people remember that when donald trump came down the escalator of trump tower two years ago, he talked about tariffs, he talked about free trade being an enemy of the american worker, and i think he is going to stick to it. he is getting a lot of pushback, including from right down the hall in the executive office,
terry cohen, chief economic advisor, who has taken the unusual step of convening a meeting of steel and aluminum -using companies to convince the president he is wrong. there are -- there is really high-stakes marksmanship going on here full -- brinkmanship going on here. who is going to blink first? can peopletrump -- convincing to soften his position on certain industries or countries? david: bloomberg reported yesterday that gary cohn is going to bring in heads of industry. do we know when the meeting is going forward? thursday,have heard where have heard tomorrow. it is unclear. it is something particular on the fly by gary cohn. he is the president's chief economic advisor and if he invites you to talk to the president, you will do that but it is fluid. there is a lot of hopscotching
going on here about which meeting will come through. staying on top of it -- and as you said, our terrific white house reporter jennifer jacobs did report that donald trump told associates that if you imposes the tariffs, he thinks gary cohn will quit. gary cohn is someone who was thought to be on the way out of the white house for a while. this goes against everything gary cohn believes about the importance of free trade and the importance of the economy and we may be seeing some of his last days at the white house. shery: i want to get to everything happening inside the white house, but we know that the swedish prime minister is that the oval office, or will be very soon. sweden is europe's fourth exporter of steel to the u.s. how important is the summit? craig: timing is everything in life. who would think that a meeting with the swedish prime minister would take up such importance?
first leader from the european union trump is seeing in person, and they will put tariffs on american products -- things like bourbon, from kentucky, levi strauss jeans from california. the eu is tweaking the president with these possible tariffs, retaliatory tariffs. we will see if the swedish prime presser and trump in the conference a few hours from now. shery: we are hearing that the special counsel has concluded an investigation that says kellyanne conway violated a half act, which bars government officials from using their official position to engage in partisan politics. what is the latest on this? craig: this is not the first time kellyanne conway has been in this position. she does a lot of the for the president of the united states.
she is on the morning shows during the weekend the sunday shows during the weekend. the laws are clear -- you are not allowed to promote a commercial position from an official white house stance, and when you are speaking on the white house lawn talking to a tv camera, that would be a violation of the hatch act. these are usually more of a warning, slap on the wrist but kellyannee third time conway has heard this from the ethics commission. she will have to be more careful going forward. david: the president tweeted today that there is no chaos, it is fake news, but he is not done making changes in his quest for perfection. who else has their head on the chopping block? craig: good question, and i read , if gary cohnbe were to leave, you can't fire me, i quit, or i can't quit because you just fire me. i don't know what the president's definition of chaos is. hope hicks recently announced
her departure. she is there for a few weeks, on her way out. aaff secretary mr. porter, man who touched every piece of paper on the president's desk, a close confidant of general john kelly, chief of staff, gone. the list goes on and on. in terms of sheer turnover of trusted confidants and aides to the president, there has been a bit of an exit is. that is a person people call a senior executive of goldman sachs come one of the grown-ups -- people talk about him that way. his views on the economy are different from the president's, in terms of being a globalist perspective vs. a perfectionist perspective for that protectionist first -- protectionist perspective. if you were to leave, it would be a big blow. on its face it would be another major departure from the white house that is seen several. shery: thank you. let's get a check of the markets.
we are seeing u.s. stocks rebounding in the afternoon session. here's julie hyman. julie: we are seeing a mixed picture just an hour ago, the last 10 or 15 minutes is when we saw stocks take another leg up. technology continues its strength. consumer discretionary shares are helping overall gains. they are among the top groups in the s&p 500. worthe laggards mentioning on the session. among them, some of the retailers we have been watching. in the case of target, that company is spending more to get sales growth. it did see comfortable sales growth last quarter that was better than estimated, but it's margins were also the lowest in 20 years, and the proper were cast -- profit forecast is below estimates. cbs -- we have been talking about the corporate bond sale, one of the largest on record. it is offering $40 billion of investment-grade debt.
the shares from equity trading lower by 1.5%. walgreens is also trading lower. the plus side, not just today, but a bigger trend we have seen highlighted by someone covering the gun industry for us come is what is happening in florida in terms of gun sales. the fbi's instant criminal background-check system, a barometer of gun purchases, february in florida, up 3.5% year-over-year. --s shows the change american outdoor brands owns smith and weapon -- smith & wesson. quite a turnaround for the stock, which had been seeing recent weakness in gun sales. in recent weakness and earnings -- we have seen that trend overall for gun companies. the best -- two of the best performers in the s&p 500 are mylan and lam research. in the case of mylan, the stock is boosted from overweight from
morgan stanley. the analysts say that the company can gain share because of weakness of competitors. lam research is returning to shareholders for raising the quarterly dividend 120% and adding $2 billion to the share buyback authorization. david: thanks so much, julie. coming up, south korean emissaries report that north korea is prepared talk about mothballing nuclear weapons if it gets the world's assurance of security. we talk about whether this is really a breakthrough. this is bloomberg. ♪
mark crumpton. mark: kellyanne conway violated a federal law that inhibits government officials from using their positions to influence clinical campaigns. the office of special counsel, unrelated to robert mueller's office, says conway violated the hatch act when she advocated for republican roy moore in the alabama senate race. the white house says conway did not advocate for or against any particular candidate, she "we expressed the president's obvious position that he had people in the house and senate who support his agenda." month for gun sales in the state of florida. the national institute criminal background-check system, a barometer for gun purchases, shows that in february, checks for sales in florida were up 2.5% year-over-year. sales of longer guns, a category that includes assault rifles like the one used in last month's school shooting in
parkland, were up more than 12%. during the obama administration, it was common to see a run on guns following a mass shooting. this trend has slowed under president trump. officials from ferguson, missouri, and the justice department are in federal court today to give a judge an update on how the st. louis suburb is addressing concerns about mistreatment of lack resident -- black residents by ferguson's police and court system. in 2014, a black unarmed teenager was shot and killed by a white ferguson police officer. the officer was cleared of wrongdoing, but the justice department found that the police had racial biases. u.n. war crimes investigators have released a report on the war in syria. the share of the investigatory panel says the report comes come in his words, "and a very dark moment in the conflict." >> next month, the brutal siege of eastern ghouta will enter its 50 year -- i repeat, 50
year. -- fifth year. beyond the constant bombardment described by the secretary of usingl, forces are starvation as a method of warfare. investigatorses also announced that a russian plane was apparently behind a deadly airstrike in november that killed 84 people at a marketplace an attack -- an attack that official sacred amount to a work -- that officials say could amount to a war crime. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. shery: mark, thank you. president trump signaled he is open to talks with north korea after kim jong-un's regime told envoys that he is going to give up nuclear weapons. it comes after months of bellicose threats from both leaders. here with us this james walsh of
m.i.t.'s security program. thank you for your time. let me bring up vice president pence's statement. he said that however the talks with north korea go, "we will be firm in our resolve. our posture towards the regime will not change until there are verifiable and concrete steps towards denuclearization." this position was in place before, too, so it has changed? james: couple of things have changed. they set up an agreement where they set up a new hotline, and the north koreans -- previously they had been saying they would not talk about the nuclear program, and they flipped on that and they say they are willing to talk about it and put that on the negotiating table, all the way up to and including denuclearization. they have made noises about that before, but sort of prickly about it recently. what that does is open the door to have conversations.
the endpoint would be verifiable committed reversible disarmament. but there are a lot of steps in between that. it is a road we have only now begun, and it would require simply a freezing of the nuclear program, and for that, north korea is going to want something in return. shery: according to the south koreans, north korea has a condition of their own. it's as if there is no military threat. i'm assuming that would mean joint u.s.-south korea military drills, an american presence in south korea. chances ofny talks progressing if this is a condition? james: if you take in a separate of, yes. it is conceivable to me that the u.s. would suspend exercises during the negotiation, yes. honestly, sort of a removal of u.s. troops from the peninsula, that would be quite something to happen. asequal difficulty, i think,
having an agreement that takes we all nuclear weapons on the peninsula. here is the interesting, -- here is something interesting, shery. south korea may be more open to that than the united states. south korea, the economy, big military, second-biggest arms fire in the world, and a country that wants to expand its sovereignty and have control over its own destiny. they may be more open to that idea in the long-term that u.s. officials are now. david: part of the heart of the matter -- how do we know as the united states that this is a bona fide and real attempt to move forward as opposed to an attempt to drive a wedge between the united states and south korea? when president clinton came in, it was perceived that he -- when moon came in, it was perceived he would be more open to north korea. james: you are right, and this is a question critics will be asking -- had we know this is an an attempt by north korea to
split the u.s.-south korea alliance? we won't know that until we sit down to talk. i would add that u.s. policy has not helped in this regard. president trump has called president moon and appeaser, not great for the u.s.-south korea alliance. he seems to be more friendly with japan and south korea. we don't have a u.s. ambassador the south korea. there are certainly things the u.s. can do on its side to inoculate against that. david: fair point, although going back before president trump can we were not making that much progress with north korea. the next step is with the south koreans. there is going to be a meeting along the border in late april. the united states is not likely to be there. james: yeah, i think that is right, and this will be a phased process. first it was representatives, then it will be something that looks more like formal talks, and in the u.s. will be brought in.
i think that is probably something the u.s. prefers, because they get to sit back and judge for themselves whether this is worth of joining. to the point about the difficulty with the north koreans, you are absolutely right. for every administration this has been a problem. i will remind you that for eight years we had an agreement with north korea in which they did not conduct a nuclear test, in which they conducted no long-range missile tests. that ended under the george w. bush administration. but years of no tests and no reactors -- some people would welcome that as an outcome in the near term right now. last: i was covering the six party nuclear talks in beijing before the framework collapsed. since then, we have seen north korea be more aggressive. this chart showing the number of north korea missiles that have been fired, and they have increased dramatically, especially last year, when we saw this strike on
intercontinental ballistic missile tests in november. how close is pyongyang to its nuclear goals, and could this much more friendly attitude than applied to buy the little time they need to perfect their capabilities? james: those are excellent questions, and you are absolutely right. under the young chairman kim, tests have gone through the roof that it is unlikely under his father and grandfather. if we have a freeze -- allegedly in the agreement -- if the negotiations result in a freeze in long-range missile tests in the negotiations, that slows the missile development for the north koreans, and is a win for us. it may be temporary, but if you testssts -- the fewer they have, the harder it will be for them to cross the line. on the icbm, more technically challenging than a nuclear
weapon, i think i have some steps to go. a reentry vehicle, guidance, those sorts of things -- if we can freeze that program, the long-range missile come icbm, where it is now, even though it is close, if we can freeze it before it crosses the line, that would be a benefit for us. so muchim, thank you for your time. you with the right person to have on today. jim walsh, senior research associate at the massachusetts institute of technology security program. the run up to midterm elections in november with primaries across texas. the president isn't on the ballot but he will be on the mine of a lot of voters. this is bloomberg. ♪
bloomberg colleague sahil kapur. set us up for this busy march. what should be we be looking for? the first primaries of the 2018 midterm election come officially underway. what we are looking out for in texas and the large swath of primaries in the lone star state is primarily enthusiasm and turnout. indicators are critical here because the level of engagement in the beginning stages of the primaries reflects the level of engagement that will show throughout the election cycle. we will get an indicator of whether democrats are is energized and mobilized as they appear to be in state elections under the trump administration, and whether republicans are complacent and staying home in a way that tends to happen when your party is in power. the party out of power is always favored to take back seats in the house and senate during the midterms, and we will get a sense in texas beginning tonight, just how much of a wave is coming for democrats. shery: right, but at the same
time, given the energized democratic party can we are seeing a very crowded race mostly democrats. will this help or hurt in terms of coordination for the party going forward? sahil: for democrats, the entire game is mobilization and enthusiasm, and they seem to have an edge over republicans. you are absolutely right about the crowded field democrats are putting out there. one thing strategists are concerned about his they end up nominating candidates who could be competitive in the general election cycle and not overly extreme or ideological candidates who might fit the mood of the party at the moment but may not be the best candidate for the general election. march special election in pennsylvania is shaping up to be a crucial bellwether of whether republicans can hold onto seats that even favor them in trump country. this is a special election in a district that president trump won by 20 points. democrat connor lamb is putting up a fight against a republican
who should be walking away with this. that will tell us whether president's message is resonating in trump country. a democratic victory would be a really bad sign for republicans. lots of republicans are spending millions of dollars there trying to keep that seat. shery: thank you. our national political reporter sahil kapur on capitol hill. up next, chinese president xi jinping preparing to extend a sweeping government overhaul that would give the communist party greater control over everything from financial services to manufacturing to entertainment. we will have the latest. this is bloomberg. ♪
materials and financials are leading the gains. the s&p 500 gaining ground. we heard from senator perdue that president trump is open to changes on tariffs announced last week. the vix has reversed earlier gains and is losing ground for a third session. two reels unchanged for the moment -- materials unchanged for the moment after seaside to the session. cvs healthcare.gov one of the largest -- cvs health kicks off one of the largest bond offerings. emerging markets are doing pretty well, gaining the most since march of last year. david: return to mark crumpton for bloomberg "first word" headlines. mark: it looks like there will be another court battle over daca. a federal judge in maryland says the trump administration's decision to the need to the program that protects undocumented immigrants from deportation was lawful.
judges questioned the decision. it increases the chances the issue will end up before the supreme court. house speaker paul ryan has called on the president to back away from his plan for broad international terrorists. ryan says a different solution -- brought international tariffs. ryan says a different solution should be found to prevent a trade war. there's clearly a beast staggering, dumping of steel and aluminum by countries including china. the way to go is to make it more surgical and targeted. mark: trump said monday his administration was in acting down from its plans -- was not backing down from its plans to impose tariffs on steel and aluminum imports, and that canada and mexico would not be spared. the federal government is prepared to extend puerto rico the loans approved by congress
to help the island recover from hurricane maria. steveny secretary mnuchin today disputed claims from puerto rican officials that the funds had been delayed unnecessarily. the governor said the treasury was acting recklessly by delaying the territory access to a loan package passed by congress in october. spacex is marking the 50th launch of a falcon nine rocket, the latest to fly from cape canaveral, florida, earlier today, carrying a communications satellite into orbit. it is almost as big as a city bus. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. shery: mark, thank you. chinese president xi jinping is poised to implement a sweeping government overhaul that would give the communist party greater power. it is part of a leadership
system that calls for merging more than a dozen state agents details of the document will be revealed next week when the national people's congress votes on the plan. nicholasxplain is lardy from the peterson institute for international economics. these state agencies, how does president xi jinping's power grab abolishing presidential term limits affect these state agencies and their impact on the economy? nicholas: well, i think the impact is likely to be fairly small. the chinese duties reorganizations periodically and have been doing it for decades. i don't see it as specifically connected to xi's consolidation of power or the elimination of the two-term limit for the office of president. shery: when it comes to the chinese economy, they seem to be very ambitious.
they want to grow the economy but also shrink the deficit at the same time. we know there are hidden channels when it comes to funding and china, which doesn't really show up in the deficit ratio. will they be using were special or unconventional methods? what does this mean for the economy? nick: well, i think they are given themselves quite a bit of leeway by saying they want work to be 7.5%. i think the overall tone of the work report that the premier gave was to downplay the importance of the growth in number per se and give more attention to the sources of growth. he emphasized increasing consumption and increasing personal incomes, as opposed to the traditional emphasis on investment. one of the remarkable things about his address was there was no target given for the growth of fixed investment in 2018. changedas president xi
his direction in the economy since he came to office? the first speech he gave, it was all about reform. the most recent address did not talk about reform. he talked about making sure the parties infiltrating throughout the economy. is that a change in direction, or were just not understanding it correctly the first time around? nick: no, i think there has been a substantial change in direction. talking aboutxi fundamental economic reform. five years have gone by, he didn't do very much. the things he talked about in 2013 have not been acted on. if you read the speech of the premier, the first day of the party congress, there were a lot of details about this, that, and the other things, but there was not a strong message on economic reform. there were pro forma mentions, but mostly things they have been doing that, in my opinion, not
really help to the overall productivity growth which is what they need. david: if that is the course they have undertaken, what does that say about market development within the country? what does that say about china's integration with the rest of the global economy? does not seem like a market-driven economy at all. nick: it doesn't go strongly in that direction, but it is going to fight it in some areas -- bit by bit in some areas in that direction. they talk about opening up the financial sector more. they have done quite a bit in that area but they say they are going to do more. they are negotiating trade agreements in east asia. so forgiving lipservice to increased integration in the global economy, further internationalization of their currency, the renminbi.
they are making steady progress on integration even if they don't undertake the fundamental reforms they should be doing to mystically. shery: your book "markets over mao" rejects the idea that china's economic progress rest on government control. has your view changed at all since president xi's power grab? nick: well, i think president xi has re-emphasized the role of the state in-state companies, that they have to be bigger and better. they have gotten much bigger. they have orchestrated top-down mergers that if increased the size of companies that were already big to begin with. the problem is they have not become more efficient, they have become less efficient. even though they are relatively a much smaller portion of the total economy than they were five or 10 years ago, they are still a significant drag on china's economic growth. shery: we could see more drags on the economic growth for these potential steel and aluminum
tariffs. already we have the washing machine and soul apparel -- solar panel tariffs. how is that impacted the chinese economy in addition to u.s.-china relations? nick: i think they will have a small impact on the chinese economy. solar panels -- the chinese did not react very strongly. they export almost no steel to the united states in the last couple of years. the steel exports to the u.s. market are highly restricted. the tariffs are quotas that trump is promising and will have virtually no affect on the steel industry. it was no measurable macroeconomics -- it will have no measurable macroeconomic effect as well. david: only have more resistance from the rest of the world to china? in western europe there is a lot of concern about investment in china. as they pursue president xi's
aggressive agenda, or at least assertive agenda, will we see more resistance with other western countries saying not so fast, thank you very much? nick: we are seeing movement in that direction in europe, notably in germany. germany in particular is increasingly concerned about ofnese acquisition high-technology companies. they are introducing a mechanism to review these kinds of acquisitions that look very similar to the process that we have in the united states. david: thanks so much, nick. we appreciate you joining us today. the peterson institute for international economics. harley davidson is among the companies trying to put the brakes on president trump's tariffs. shery: also ahead, we would hear from norway's oil minister. talking oil strategy with the
david: this is "bloomberg markets: balance of power." i am david westin. shery: i am shery ahn. time for our stock of the hour, and we're looking at harley davidson. shows of the motorcycle company are down on the potential tariffs and trade war. abigail doolittle joining us with more. nothing is set in stone, but still, the stock reacting. abigail: this would be a double whammy -- the company is saying that a potential trade war would hurt the company's sales in europe, or if there were u.s. tariffs that would bring up costs. they will be hit either way.
what makes it so interesting, the iconic motorcycle company is one of the first that president trump found to help. towithout bash -- vowed help. we see that we have numbers, revenue going in the wrong direction. that is overall revenue. in green we have the united states. here in yellow is europe. it is not nearly as much as oming out of the u.s. still, if it were hurt in terms of tariffs, their in such a fragile position. sales down could hurt them that much more. david: if i had a favorite ticker, this would be a. abigail: it is a fun ticker. david: they were in trouble before this, like before the tariffs were mentioned. abigail: first of all, millenials. apparently millenials don't like
riding motorcycles. one bike cost $30,000. it is a pretty expensive machine. the second is the big bikes. internationally it doesn't do very well. perhaps resetting the bar, taking down numbers, making it bea on ahey can regular basis andt more demand and supply, create the iconic status. -- itinance the vehicles is a painful move to potentially make. it is hard to let go of the past. david: they are very proud of the brand. abigail: and they should be. it is a beautiful, beautiful vehicle, if you will. david: for older people. thanks very much, abigail. wither alix steel sat down norway's minister of energy, terje soviknes.
she asked about his meeting with u.s. interior secretary ryan zink you. aboutviknes: we talked u.s. and norway, how it has developed in the last rough use of the oil price collapse in 2014. we discussed offshore wind. and they want to invest in the u.s. a license on the eastern course .f norway and offshore wind, a new project with insertion outside scotland at the moment. alix: what kind of opportunities will there be in the future for the u.s. and norway? mr. soviknes: a whole range between these two companies. also in the energy field. we are working on carbon capture
and storage. we're working on offshore winds. in the new technology within the oil and gas industry. alix: to the threat of tariffs from theer rhetoric u.s. bother you at all? mr. soviknes: that is up to the government to decide, but we prefer the most free trade as possible. world-class supply industry within the oil and gas industry. it is extremely -- we want to expose technology to the rest of the world. alix: in terms of norway in particular, there has been a huge production increase in non-opec -- yes, in schalke but also in norway, britain, and canada. why did production recovered so
quickly? we had impressive cost reductions. operational costs, new development projects, 30, 40, 50%. last year we received tentative plans for development and production on the norwegian continental shelf. it made investment decisions for 16 billion u.s. dollars. that is the highest level of investment commitments of all offshore oil and gas regions during 2017. quite impressive. alix: are the cost reductions sustainable in that if oil prices hit 30 again, you will have the same production you are seeing? mr. soviknes: yes, we have new development projects with the break-even price lower than $30 per barrel.
alix: what price? mr. soviknes: the largest project at the moment in the north sea. well below $50 a barrel. alix: and you think that is sustained? mr. soviknes: and we are going further north, the northern worst region -- the northernmost region. we have a new oilfield developing there as well. had a 60% cost andction from years ago, they presented the development plans. alix: aren't you undermining norway?o way?-- mr. soviknes: no, no way. we are a large producer of oil
and gas. we're the 14th largest exporter of oil. still, just 2% of the global markets. it is not that much. we aregoing forward, going to be an oil and gas exporter for decades to come. i think the opportunities for oil and gas cavities and the supply industry and the norwegian continental shelf is promising. shery: norway's oil minister with bloomberg's alix steel in houston. in the next few minutes, president trump will greet the prime minister of sweden. the eu vows to retaliate in the face of u.s. tariffs. we will head to the white house next. this is bloomberg. ♪
david: this is "bloomberg markets: balance of power." i am david westin. shery: i am shery ahn. sweden's prime minister stefan löfven is visiting washington for the first time since trump took office, amidst blowback over proposed tariffs on steel and aluminum. the eu and even the swedish trade minister have called for countermeasures. kevin cirilli is at the white house to tell us what to expect from the meeting. difficult at times, potentially a difficult conversation. what exactly is on the agenda? kevin: difficult conversations, to say the least. the issue of trade now at the forefront not just internationally, but also for the president within his own party in congress. as you mentioned, sweden already criticizing the proposed tariffs president trump
wants to see on the steel industry. the european union is threatening to file complaints with the world trade organization. china's calling this "a stupid .dea," and south korea it is here at home where president trump is facing intensified criticisms not just from house speaker paul ryan, who criticized the proposal at a press conference, saying he would like to see "the surgical approach," suggesting he would like to see carveouts for the opportunity for some businesses to be excluded from the tariff proposal once it is finalized. inside the white house, people like gary cohn are speaking out increasingly against the policy. others like peter navarro, who has been a protectionist in the past them also suggesting that president trump has the right mindset. it comes a few days before president trump's set you had to southwestern pennsylvania to campaign in a special election. it is those types of voters he
feels will be able to help back this policy. david: if that weren't all enough, the yuan, chinese, capitol hill, and gary cohn, he will also face the press corps today. unlike yesterday with prime minister netanyahu, this will be a news conference. what is he going to say? kevin: in addition to the developments on trade we should know that developers on north korea. as you know, earlier overnight, the development of the national security standpoint suggests there could be a potential breakthrough between south korea and north korea. president trump tweeting out that he will have to wait and see on that front. i would anticipate there to be some questions with regards to foreign policy. all that comes at the back-and-forth and the various continuing with the molar probe continues. -- mueller probe continues. shery: sweden has a long-established diplomatic relationship with north korea, so it will be interesting to see what the prime minister says.
do we know them going back to tariffs, where president trump stands? it seems to be a little bit influx. kevin: yes, and earlier today on capitol hill, treasury secretary steven mnuchin testifying in the house and doubling down on president trump's comments and tweets earlier this week, where he says that in order to get the tariffs and maintain them at that level, for nafta talks, canada and mexico would have to come to the table with something to negotiate a better deal. i would note that president trump reportedly spoke with prime minister trudeau of canada last night, according to a readout provided by the white house. the composition talked specifically about the trade deficit regarding african which president trump has criticized for -- regarding nafta, which president trump has criticized for quite some time. shery: kevin cirilli at the white house, thank you. we will give you live coverage of president trump and swedish prime minister löfven.
scarlet: we are alive and bloomberg world headquarters over the next hour. the stakes. president trump's proposed tariffs facing opposition at home and abroad. some of the energy industry's biggest names are gathering in houston. we have exclusive remarks from the ceo of conoco phillips. nordstrom verse of the nordstrom. the founding father pitted against the board of directors. markets are closing in two hours. you could make the argument the s&p nasdaq is building on yesterday's advance. julie: right now, yes. we have seen them bouncing between gains and losses. so yes, it does