scarlet fu is off today. lower,.s. stocks closing wiping out august gains. joe: the question is "what'd you miss?" ask about the g-20 the easen china and decision over apple's tax bill. joe: ridesharing companies have a flawed model, that is according to our guest. >> u.s. auto sales expected to slide, while annual sales fall for the first time in seven years. matt: we kick it off with market minutes. let's take a look at stocks. we had been looking for another rally. that would have made it five or six months in a row for the s&p 500? >> i think it was headed.

is the firstcline down month in six. r, ast got a look is on mm bloomberg function. menu,in the drop-down month to date. the big winners, smaller stocks like micron, urban outfitters, but the big, month to date. the big winners, best buy, up 15%, and nordstrom of 14%. retailers, especially teenage retailers, seem to do pretty well. the poor performers, bristol-myers down 23%, freeport down 20% as well, then newmont mining, diamond offshore

drilling, commodities as big losers in there. equities down for the month. joe: that's the same for treasuries. year taking 10 higher, small, but u.s. government treasuries down for the month in the worst month since june 2015. dollar-yen, ato stronger dollar against the yen. you can see dollar up .5% against the yen. is headed for its first monthly advance against the yen since may. this is about monetary policy divergence or the speculation of it. .terling higher, up .4%

the pound heading for a fourth monthly drop against the dollar amid speculation that boe will try to soften brexit with easing. if we look at the brazilian currency, that is rising against the dollar. dollar .3% against the ilma rouseff was impeached. oil down over 3%, so below $45 a barrel. matt: let's take a deep dive into the bloomberg.

you're going to kick it off with a cool function. >> the function of looking at e cmx go, bloomberg's global economic matrix. you can assess and compare the economic health of different countries. myself usings function for the markets. japan and italy have the highest public debt to gdp ratio among g-20 countries. ofthe right, growth rates 0.6 and 0.7% respectively, the lowest in the group outside emerging markets like brazil and south africa. the take away is we have been talking about the limits of monetary policy and whether we should see more fiscal policy, but if you look at numbers like this, that debt to gdp and the growth, the question is do japan and italy have enough ability to

spur growth of their additional spending. doubledybe if they just their debt to gdp levels, they could get those growth numbers up. joe: that's what they are missing. matt: what happens if you have the global map button? that might be quite interesting. >> let's have a look. matt: it often times makes it colorful. >> indeed. down, look at the drop you can look at all kinds of things, ppi, unemployment rates, retail sales. matt: really cool function. joe: one of the big stories in the global economy has been the fact that the u.k. economy has not collapsed post the brexit vote. in the long run, joe. here is u.k. consumer

confidence bouncing back in the last month. levels.re-brexit vote run, -- the long ,his is a function i look at very interesting, the nigerian billionaire who owns a huge and cement producer and conglomerate, making sugar, salt, flour, beverages, packaged food. he has about $10 billion. i like the relative value here. you can see how many for receipt could buy, 25 thousand 500, but up you you can see his wealth and white. it has come down substantially even though the shares and his company have risen. the reason for that is the devaluation of the currency. it has cost him a lot.

i think it is an interesting look at currency effects on actual billionaires. sales for's earnings are coming out, i will pull them up. earnings are coming out, i will pull them up. $.22, since beating .22.04 billion most importantly, they have raised full-year revenue guidance. they are real forming the forecast for eps, raising guidance for revenue, which is a good sign. are actually adding customers or able to raise prices or both. joe: the stock is down 5% perhaps on the outlook. another country, brazil, dilma rousseff ousted today in a historic impeachment trial.

on the news,gained mostly expected. with us now to talk about brazil and currencies around the world, i think we have breaking news -- matt: it looks like donald trump will trump you along with the mexican president. the mexican president and the republican candidate are speaking let's listen in.

>> the next president and of the united states will find a neighbor who wants to work constructively. i firmly believe that we have big opportunities if we decide to take advantage of them as good neighbors, good friends, and strategic partners. even if we have some believe that, we

we might find prosperity without losing our independence. we half to be always open. how we can improve our relationships across the borders and clarify any possible misunderstandings. why in recent days i sent a letter to both presidential candidates of the united states proposing them this first meeting to discuss constructively the issues between our two countries. i have met today with mr. donald

and look forward to do the herewith hillary clinton at the presidential palace. your presence here, mr. trump, shows we have a fundamental quinn said in's -- coincidence. the united states is very , and mexicor mexico is very important for the united states. share the border, the biggest in the world, which on a daily basis more than one million , and trade between our two countries surpasses $500 billion.

, therms of security cooperation between the two governments is increasingly more .mportant i just had a very open conversation with mr. trump, and the main goal of our meeting was to know each other, to exchange point of view, and discuss our relationship. , we share thee benefitednafta has not only the united states, but also mexico. u.s. exports to mexico are close to $200 billion a year, figures of the

trade chamber of the united states. country buys more from the united states than germany, , japan, and the u.k. altogether. and we have developed a very competitive manufacturing plant .etween the two countries as partners, we have to work .ogether

nevertheless, free trade agreements between the united states, mexico, and canada can be improved. the new government of the united -- i don't find believe that trade between the two countries should be like some sort of game. effortould be seen as an to make our region, latin america, the most competitive, the most innovative region. issues, the border

border should be transformed .nto a region we have made a lot of progress in recent years with the administration of president obama, and we should accelerate these efforts. nevertheless, it is very to deal with the issues at the border such as drugs and undocumented immigrants. the peak of these relations took place 10 years ago, and since

we know that we have a shared challenge before us. we recognize the issues of people crossing the border creating humanitarian crisis. each year, tons of guns entered illegally to mexico from the violence.engthening favoring, also

benefiting the arms dealers. a solution for the border. we need to deal with the challenge of undocumented immigrants, smuggling of arms at the same time. the illegal flows of arms, drugs, and cash between both ways have a multiple negative consequences on both sides of the border. the border should be seen as an opportunity, as a joint opportunity for both countries to create more infrastructure, to add more technology, to make

it safer and more efficient. you recognize the sovereign right that each ,ountry has over the border this is the most effective route to achieve this goal. trump --oned that mr. i already mentioned to mr. trump that to make the relationship and to prove the relationship is vital for the region. mexico and the united states are working together to face the challenges ahead. every day agencies from both countries work together on this matter. , the outcome of

forpresidential election the next u.s. administration on mexico toy rely improve safety for the region. to reiteratewant here what i mentioned months ago. my party as the president of mexico and my government is to protect our citizens regardless of where they are. that is my responsibility, and that i will fulfill that promise. the mexican community and the united states who represent and contribute every day with work, to the prosperity of the united states and mexico. mexicans in the united states

are people that are honest, good,orking, people are that respect life and the life in community and law. deserve the respect of everybody. keep working to solidify our relationship between the as part ofxico mutual respect and trust. conclude reiterating that the mexican government will be absolutely respectful of the other tour processing united states -- of the electoral process in the united states. toecognize your intention create an to fulfill a

productive dialogue. the dialogue is definitely the path to achieve a bigger understanding. thank you so much. >> let's now hear the words for the republican candidacy of the united states, donald trump. >> thank you. it is a great honor to be invited by you, mr. president, a great, great honor. thank you. we had a very substantive, direct, and constructive over quite adeas period of time. i was straightforward and presenting my views about the impacts of current trade and immigration policies on the united states. as you know, i love the united states very much and we want to

make sure that the people of the united states are very well protected. express your feelings and your love for mexico. the united states and mexico , $500a 2000 mile border billion in annual trade, and one million illegal border crossings each and every day. united by our support for democracy, a great love for our contribution of millions of mexican americans to the united states. i happen to have a tremendous americans, mexican not only in terms of friendships, but in terms of the tremendous numbers that i am employed in the united states, and they are amazing people, amazing people. friends, so many

friends, and so many friends coming to mexico and in mexico, i am proud to say how many people i employ, and the united states first, second, and third-generation mexicans are ,ust beyond reproach spectacular, spectacular, hard-working people. i have such great respect for them and their strong values of family, faith, and community. common interest in keeping our hemisphere safe, prosperous, and free. no one wins in either country when human smugglers and drug traffickers prey on innocent people, when cartels commit acts of violence, when illegal weapons and cash flow from the , ored states into mexico when migrants from central

america make the dangerous trek, and it is very, very dangerous, into mexico or the united states without legal authorization. view thaty strong nafta has been a far greater benefit to mexico than it has been to the united states, and that it must be improved upon to make sure that workers, and so both countries, benefit from fair and reciprocal trade. i expressed that to the united of the united states that we must take action to stem this tremendous outflow of jobs from our country. it is happening every day. it is getting worse and worse and worse and we have to stop it. prosperity and happiness in both of our countries will increase if we work together on the

goals.ng five shared number one, ending illegal just betweennot our two countries, but including the illegal immigration and migration from central and south s and from other regions and impact security and finances in both mexico and the united states. this is a humanitarian disaster. the dangerous tracks come -- by gangs anduse cartels, and extreme physical dangers, and it must be solved, it must be solved quickly, not fair to the people anywhere worldwide, you can truly say, and certainly not fair to the people of mexico or the people of the united states. number two, having a secure

border is a sovereign right and mutually beneficial. we recognize and respect the right of either country to build a physical barrier or wall on any of its borders to stop the illegal movement of people, drugs, and weapons. achievingn toward this shared objective, and it will be shared, of safety for all citizens is paramount to both united states and to mexico. number three, dismantling drug cartels and ending the movement of illegal drugs, weapons, and unds across our border. this can only be done with cooperation, intelligence, and intelligence sharing, and joint operations between our two countries. it is the only way it is going

to happen. four,ing nafta, number nafta is a 22-year-old agreement that must be updated to reflect the realities of today. there are many improvements that could be made that would make both mexico and the united states stronger and keep industry in our hemisphere. we have tremendous competition from china and from all over the world, keep it in our hemisphere. workers in both of our countries need a pay raise very desperately. in the united states, it has been 18 years, 18 years, wages are going down. in proving pay standards and working conditions will create better results for all and all workers in particular. there is a lot of value that can be created for both countries by

,orking beautifully together and that i am sure will happen. number five, keep manufacturing wealth in our hemisphere. , thejobs leave mexico u.s., or central america and go overseas, it increases poverty and pressure on social services as well as pressures on cross-border migration, tremendous pressure. the bond between our two countries is deep and sincere, and both our nations benefit from a close and on his relationship between our two governments. strong, prosperous, and vibrant mexico is in the best interest of the united states and will keep and help keep for eriod of timep

america together. both of our countries will work together for mutual good, and most and most importantly, for the mutual good of our people. president, i want to thank you. president, i want to thank you. it has been a tremendous honor, and i called you a friend. thank you. >> [inaudible] >> excellent, excellent. quite someether for time. i think excellent. i was with senator sessions and mayor giuliani, and we had a tremendous more than an hour, i think it was very good. [inaudible] >> no, not at all.

we want what is good for the nine at states, and the president wants what's good for mexico, and sitting down and talking we both realizes and realizes from the beginning that it is better for both of us. yes, john? >> [inaudible] >> we did not discuss that. we did not discuss who pays for the wall. we did not discuss that. >> [inaudible] the wall, is it a nonstarter? start., i will nothing like an easy question like that. we did discuss the wall. we did not discuss payment of the wall. that will be for a later date. this was a preliminary meeting, an excellent meeting, and we are

very well on our way. a lot of the things i said are very strong, but we have to be strong and say what is happening. there is crime, as you know, a lot of crime, and there are a lot of problems, but together we will solve those problems. i believe the president and i will solve those problems. we will get them solved. ev go immigration is a problem for mexico as well as for us. drugs are a tremendous proper mexico as well as us. it is not a one-way street. we will work together and get those problems solved. say that theo mexican government chose complete respect for the electoral process in the united states. tenderedation that was was responded immediately to

discuss bilateral relations between the two countries. it, how reloaded relevant and important strategic alliances between the two countries. it is important to highlight the big responsibility i have as president of mexico to defend the mexican people here and overseas. there may have been sadly hasetation that mexican and the misperception about mr. trump's candidacy. mexican people felt aggravated by those comments.

let me assure you that we have a genuine interest to build and conditions for the betterment of our societies. our disposition to meet with both candidates to be president of the united states, we are doing it under the umbrella to that specific premise, but more importantly, based on a mutual respect between the two parties, and that is what i shared today with canada truck. >> we thank all of you for your attendance. that was the mexican and the u.s. republican presidential nominee donald trump is speaking and mexico city oh.

. a lot of discussion of immigration policy in both directions. donald trump did bring up his infamous wall, but said they did not discuss who pays for the wall yet. we still have mark chandler here. we were talking to him briefly before we went to the press conference. things, i interesting was talking to you about the mexican peso and a lot of people saying it is a proxy for emerging markets. we saw get hit hard when the pound got hit hard after brexit, and you say a lot of people treated as a proxy for donald trump. how does that work? >> donald trump has been so itressive with mexico that is a big thing holding us back somehow. people think that if trump goes up in the polls, you can sell the mexican peso. most recently donald trump change the management of his campaign and the mexican peso has been hit.

a lot of people do believe that if donald trump gets elected, then the mexican peso will suffer. >> speaking of the peso, it is one of the worst performing em currencies this year, down 8%, but it has rebounded since the end of june. i have a chart showing inflation expectations looking at the five your breakeven rate. it has declined since august 2. had you read this if you are a currency investor? a currency or central-bank action impacting the currency more. i'm just trying to work out the scenario. >> welcome to my life. a lot of us want to focus on one cause. one factor is the federal reserve, talking about raising interest rates. a big drop in oil prices. as people become skeptical of a

production freeze. now you have mexico saying inflation is coming in as lower than expected, which means they won't be able to follow the fed rate hike. ,hat is negative for peso, oil so i would add it up like this federal reserve, donald trump. kevin, what are your big takeaways from what we just saw? >> the press conference just ended. what we heard from donald trump is someone speaking a lot more presidential, if you will. he spoke in a much more softer tone. he sought to find common ground between the president of mexico, saying that the illegal immigration that is flooding in from central america is harming mexico, but at the inn, he did take questions, just a couple, and the is where things got interesting. he said they did discuss the wall that donald trump once to

build between the u.s. and mexico, this border, this wall a huge contentious point between mexican leaders and u.s. leaders as well as republicans in this presidential race. he said he reiterated that he wants mexico to pay for it, and then the president of mexico punted on that and did not give a clear indication of how that went. it will be interesting to see the town donald trump just took now and whether or not he matches that town tonight in phoenix when he gives his immigration proposal. matt: kevin, isn't the idea really that the way donald trump would eventually -- not that if he doess -- eventually become president, and then if he does connect all the current walls with his new wall, isn't he just going to put the price tag on some import-export

surpluses and say that is how mexico affectively pays for it? >> yeah, he would also utilize something known as remittances. he would limit the number of money that documented workers are able to send money back to mexico, which would have an impact on the country. the bottom line is this, the huge, huge,e, a huge increase in population in the united states, and one that republicans need not only in this election, but long-term. donald trump was able to capture the republican nomination because of his aggressive, conservative rhetoric and position on illegal immigration, but now he finds himself at a crossroads where he is still down six points on average nationally against hillary clinton. he has got to make inroads. he is trying to moderate on his tone to win over not only

hispanics, but also independent voters who candidly don't want hillary clinton or donald trump to win. >> on hillary clinton, i want to make clear that president peña nieto did invite hillary clinton to mexico, didn't he? >> correct. aides speaking with an of the mexican president and she said this is a very quiet operation and they actually did not find out this is happening until last night, so both donald trump and mexican officials keeping this incredibly close to them. of people offt guard, i can tell you, but they did do a joint press conference today. they did have that appearance, but what to watch in the next 12 hours is again how will donald trump speak tonight in phoenix? ground zero, if you will, of this immigration debate and our country, and also, will he

addressed specifically what he would do with the 11 million undocumented immigrants who are in america. mark, i like to thank you both for joining us and helping us break this down. i really appreciate it. matt: coming up, an exclusive interview with the undersecretary for international affairs, his take on the eu decision over apple's tax bill and this weekend's g-20 meeting. this is bloomberg. ♪

the big headlines this week is the european union's order that apple has to pay ireland $14.5 billion in back taxes. the eu decision is sure to be a

topic of discussion at the g 20 summit in china this weekend. down for ant exclusive interview with u.s. treasury undersecretary of international affairs, nathan sheets. we ask them about the treasury at first to preempt the decision and what the treasury department can do now. as you indicated, we have laid out our concerns about this decision quite clearly. as a novel application of the state aid theory and some over wide existing tax interpretations in the rules of the national tax authorities. , at least to some extent, it is reaching into the u.s. tax base. for these reasons, we have clearly articulated our concerns. i think the way ford with this is we will continue to make clear the concerns that we have.

i think it is also important to we have beent --aged in a construction of constructive effort which we see as a promising way ford in the g-20. over the last year, a fair amount of work has been done over how do we optimally tax and appropriately tax multinational firms. steps to makeke sure they are paying their fair share. there are those who say in light of that that multilateralism is a good thing, but if one of those parties is not doing anything, why wouldn't the european commission go out and do this on their own? there has to be some frustration with how glacially tax reform has been moving here in the u.s.. >> we at the treasury and the administration have been clear about the need for tax reform to shift these incentives.

it takes a lot of effort of the government, ,ncluding congressional action to make that happen, but clearly that would be the first best outcome. the summito g-20 for this weekend, what is your sense of the global economy right now? what you want to convey as the american perspective on where we are right now? >> the good news is the u.s. economy is the relative bright spot in global performance. our consumer sector is strong. household balance sheets are much cleaner than they have been. corporations are very competitive internationally, so we are in a good place. thechallenge we face in message we will take to china is one where other countries need to take steps similar to what the united states has done over the last 6-7 years to use all the monetary tools to boost their growth rates and to raise

demand. we really see this as being essential. >> that is the prescription we have heard so much in recent days about fiscal policy, certainly from central bankers around the world. how is that clarion call being heard within the treasury department and administration? >> my senses that we are getting traction with it. over the three years or so i have been at treasury, particularly the understanding of the appropriate role for fiscal policy, is resonating much more clearly with our international counterparts than was the case of uighurs ago. is the global economy has continued to , but in on the downside addition, i think the need for additional action is increasingly compelling and the their being physical space and room to maneuver in these countries is increasingly recognized. >> i imagine the brexit

referendum will come up at the summit. jack lew talked about how quickly and nimbly they responded. how with the u.s. like to see that negotiation process play out between the u.k. and the eu? >> i really think that the surroundingf events the values highlight of multilateralism, that we were able to coordinate effectively in the financial space, and thinking about macro strategies and so forth, and as a result of that, the reaction of the global markets was more calm than it would have been otherwise. in terms of the way forward, the first-order, an issue that will need to be worked out over time by the europeans and the u.k., but it is one of great

importance and we have made that that an outcome involves greater integration between the united kingdom and the european union is in the best interest of europe. it is in the best interest of the united states. it is in the best interest of the global economy. so we will continue to watch and stay aggressively engaged on that issue. i wonder how satisfied you are at this point in terms of how china is handling its currency? that we have issue been working with the chinese on for a number of years, including the last year as the chinese with the g-20. at anse is that we are place where china is moving in a gradual orderly way towards a fixed exchange or a market determine exchange rate regime. the reality they face is that

capital outflows have been greater than capital inflows, and as result we have seen a depreciation of the currency, but as those close reverse and there are more inflows and outflows, we need to see two-sided flexibility. that is really the key. we will continue to work towardsly with, to move greater exchange rate flexibility. this is a first-order objective for them and us. industrial overcapacity is something the treasury department has been vocal about. ,here was progress on steel aluminum was a bit of a hangup. any more movement there and the next couple of months? make have continued to progress. as you know, we moved forward in then further and

subsequent g-20 discussions. we are having ongoing ,egotiations about aluminum further steps that can be taken to a dress the excess capacity issue, which we see as an important global issue. it is another issue on our list for our meeting and china and part of our agenda, globally important. >> the swift a system saying it is still being attacked, hacks are being perpetrated against it. six u.s. senators wrote a letter saying cyber security should be paramount at the summit. you take tomessage china when it comes to cyber security, particularly in the financial sector? we are committed firmly to ensuring the integrity of the financial system. certainly parte of that and first-order.

and other intrusions and disruptions of the financial sectors are not tolerated. this is another place where i think that multilaterally we are making significant progress. year or so, the treasury has co-shared a g7 working group where we focused on ways to make our financial system more robust to cyber events. the next question is about financial inclusion. i was struck how that would be a big topic of discussion at the g-20. can donald trump take credit for changing the agenda at g-20? populistrise of ferment and fervor about the globe look on me brought about the need to have more conversations about it? >> we at the treasury have an working on this issue of

financial inclusion and how to make the financial system work more efficiently for a broad swath of populations for some time, but i also very much agree with your underlying point, that the issue of financial inclusion is related to the broader issue of how to we make growth more inclusive and had we make it more shared. financialat further involvement is consistent with that as is structured, education, and frankly a more transparent economy is likely to be a more inclusive one. sheets into nathan washington. matt: donald trump and president peña nieto downplayed differences and set aside harsh rhetoric after meeting in mexico city. we had live there to break down the statements. this is bloomberg. ♪

joe: i am joe weisenthal. "what'd you miss?" we just heard from donald trump and mexican president enrique peña nieto. they emphasize cooperation and mutual respect. let's get the latest from our partner network and mexico. thank you for joining us. the reaction here in the u.s. seems to be that donald trump did pretty well and he did not make a fool of himself and they talked on equal levels, so he did fine. what about the political perspective from president peña nieto? what did he accomplish by inviting the candidates down? from a political perspective, how did it go for him? >> that is the big question at

this point. nobody thought this meeting would ever have been possible. nobody thought donald trump would come to the mexican presidential mansion, but there he was. you at this point there is genuine political fallout. this is a very interesting day. there are a lot of bad comments about this decision by president peña nieto on social media. comments criticizing the decision to have donald trump here in mexico city after all he has said about mexico. we have to remember that mexico has 10 a contentious point in his campaign. many politicians are questioning what are the motives for president peña nieto to receive donald trump. at this point, the big question is did president peña nieto have anything to gain from receiving donald trump?

from a national perspective, it is difficult to say. i can tell you at this point thaton social media here there seems to be a massive uproar against the decision. matt: does he have anything to lose? aren't his approval ratings pretty low? has in his tenure as president been wracked with scandal? as president0 year has been rocked scandals left and right. tenure as president has been rocked by scandals left and right. this will have an impact on his popularity. whatnnot underestimate this will generate in mexico, especially with a character like donald trump that is generally reviled here in mexico. i have to say something. during the press conference or joint statement, president peña nieto was quite measured.

he said he basically tried to show a respectful face, but something that is being criticized at this point is that donald trump emphasized five points on his agenda, including the building of the wall, so at this point we can say that this meeting is having a lot of people baffled because there seems to be so little to gain from receiving donald trump here in mexico city and there is so much to lose at this point. remember, tomorrow is the annual state of union address for president peña nieto in mexico city. it will be interesting because the parties will most likely criticizes meeting. joe: from our partner networks in mexico, thank you very much for breaking it down. i think what he just described there is kind of the big story. no one can figure out what the angle was from enrique peña nieto's perspective.

>> the central bank cutting its growth forecast for mexico, saying outflows need to be watched. joe:

♪ >> i am the coal wallace. >> i am john heilemann. with respect to mcdonald's and kfc, we expected that today donald trump is eating something more festive. .> burger king's new whopperito ♪ >> have you seen the whopperito in person? >> no. donald trump's immigration speech, the whole