stupid. president trump uses national security to levy tariffs. swinging the acts at deutsche bank. cutting 7000 jobs, a quarter in equities. will it be enough? minutes,ut from the members could not agree on anything including if the economy is apple employment, taking the shine off the dollar and two-year yields. david: i'm david westin alongside alix steel. are you in the market for a new car? alix: my husband is. david: better by sooner than later. prices are going up. alix: it is not like they are cheap to begin with. in the market,, in the equity markets, going nowhere. euro-dollar up to tens of 1%. weaker dollar story after minutes came out yesterday.

a potential government moving forward in italy. in the u.s., action going to be, a steeper curve. buying in the short end, selling in the long end. crude it down by 7/10 of 1%, despite opec ministers in russia, meeting and chatting over the next couple days. david: still over $71. way up. time for the morning brave. ief. at 10:00, existing home sales for the month of april. u.s. treasury auctioning $30 billion in its seven-year notes. time for the first take. columnist. the top story is the announcement overnight the united states is investigating autos. we will show you what is happening. bmw, porscheard, all down.

japan, same story. mazda, mitsubishi, quick reaction. there is a lot of hesitance in the marketplace. >> this is probably one of the most symbiotic trade relationships we have had in this country. the automotive industry. a situation where you're going to disrupt not just the flow of cars in and out but the parts, that is why you're seeing stocks falling. david: to that point, a chart of where we import from. it is not just germany, japan, it is also mexico and canada. those supply chains, with the american companies are integrated. is this anstion, attempt at a negotiating tactic? discussions, is this a way of pressuring mexico and canada demands? bit on th

to call this national security is absurd. at least with the aluminum tariffs, they are used in military equipment. that is rather tenuous. cars? these are consumer products, u.s. allies. how do you argue this is a national security issue? the metal that goes into the military equipment -- anything could be a national security issue. david: that makes you feel like it is 1941. >> we were not alive then. [laughter] david: it is hard to believe -- there was not a year when i was not alive. alix: cutting 7000 jobs, deutsche bank, cutting 22 billion euros, expecting tax returns on tangible equity to stabilize the fall.

7000 jobs, is that enough? >> i thought it was interesting in the new story, that may be more like 10,000. if you look at the press release, they give themselves room. less than 90,000 -- you can see room for a bigger cuts. it is a good thing to have this announcement out there, a ballpark number, because uncertainty was not deutsche bank's friend in this case. we're seeing different banks about who they could poach, senior executives leaving -- they caught the employees, to have more employees is a -- to have more specifics is a good thing. alix: stock still down by 3%. i have to wonder if this is a clean up shop to sell or hail mary? >> i wonder why they did not do more. this is a small cut.

they should have done this a couple years ago or started this process. when you look at initial reports, 10,000 or more, now we are getting 7000, it still creates a question -- what are they going to do in this business? david: that is one thing to cut cost but you also have to keep revenues up. if you cut cost and reduce revenue, you a congress nothing. alix: equities doing well. >> he is trying to be more surgical. it is still a huge part of the business. they are still getting the lunch handed to them by jpmorgan and goldman sachs. they have got to do something. >> that is why there is push back on the turn on equity target. how will they need that and get that implied profit gain from that if you're cutting so much staff? david: it is hard to cut costs without reducing revenue. on the deutsche bank story - ming up, we speak with a union investment portfolio manager, i

ngo. the minutes out yesterday, they are not sure about a lot of things. one quote -- "participants expressed a range of views on further policy likely required over the medium-term to achieve goals." a few people thought this and that, so many different subjects. has called off the bond apocalypse for the time being. we're feeling we might not need to accelerate rate increases at the pace people were expecting. you saw the steepening in the yield curve. for now, we are not getting this bond armageddon. david: what about that curve? a chart showing the 2-10 spread. it steepened a bit after the minutes. >> you seacti yesterday. the spread, the rally.

the market is telling you, they don't think the fed is going to do more. i wouldn't worry about the curve. theerday was a green light, chances we would go to 3% and 4% is less likely. you are seeing that reflected in bond trading, implied probability this morning. this was a signal that they can agree on what to do next, and in the short term that might be a good thing for equities and bonds. >> what i found crazy -- they could agree on whether we were at full employment. 3%anything, you would think handle would mean we were at near full employment. it is a totally different fed. >> powell and his ability to shepherd the discussion -- alix: maybe he doesn't want to. david: does it mean he is worse. maybe it is constructive. let everyone express their views. alix: i don't like change.

thank you both very much. david: earnings crossing. best buy, first quarter, les up 7.1%. they appear not to be adjusting full-year views. best buy is up 2.3% in pre-trading. great numbers on comp sales. 13.6% ofine revenue, total revenue. eating into that. competing in mobile phone revenue, comp sales up 10%, by far the best we have seen. strong quarters from best buy. just like retail. the names we wrote off, amazon is killing it. if you have the right strategy -- macy's, kohl's, they are holding up. >> it is interesting. thatresumptive opinion was

amazon would take these retailers out of business and they are fighting back. there is a difference between surviving and being successful as a retailer. as you look at companies moving into e-commerce, that is a lower margin business, requiring investment. the profile of these retailers will have to change in the investment they slap you change with them and adapt -- and the investments change will have to adapt with them. david: it has been a while. alix: more on what the fed can agree on. we discussed with wells fargo. this is bloomberg. ♪

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>> this is "bloomberg daybreak," i'm kailey leinz with the bloomberg business flash. the fund led by paul singer confirms it is taking a stake in an engineering company. management says there is room for improvement at the company, the firm says it looks forward to talking to the advisory board. produceran aluminum has taken another plan to lift sanctions. the ceo and the board have quit, hoping it will show it is reducing links with a billionaire, as the u.s. has demanded. if sanctions are not cut by october, banks will cut ties with companies. a dutch company backed by silicon valley billionaires is going public. planning on selling shares in an amsterdam ipo, it could be valued at $5.9 billion. they process payments between

customers and companies such as they spoke and ebay. -- such as facebook and ebay. alix: sent to raise interest rates at the next month. no clear message on how many hikes will follow the move. this agreement showed up in other issues. current rate versus neutral rate, a big topic of conversation. neutral rate is the white line, the blue line is the fed target rate we are at right now. back out of core pci. neutral depends on how accommodated we are and how many more hikes in the cycle. darrell, what, did you make of that? some committees think we have to the word accommodated from the statement. that seems dovish. darrell: my take was the minutes were dovish overall.

the committee is inching toward more concerned we are approaching neutral rate. if you dissected the minutes, it looks like two more hikes, year anend 2018. the concern becomes -- how much are they willing to take it over the neutral rate? we know they will let inflation overshoot. will they take the neutral rate past neutral? david: are we happy with that as an investor? it steepened the yield curve yesterday. darrell: we want the yield curve to steepen, at this point in the cycle. you saw the concern in the minutes, part of the technical change to the ioer. david: i'm not sure i fully understood. alix: that took up so much of my night. darrell: if the only move the points and 20 basis change the fed by 25, that puts

downward pressure on short-term rates, money markets, cd rates. it holds the short side of the allows, growth and inflation upon tightening to steepen. david: it has the effect of shaping the curve? darrell: that is exactly why they were doing it, to hold down short-term rates. alix: what they said about inflation, the potential overshoot -- here is a statement, "modestly above 2% could be helpful in anchoring longer-term inflation expectations at a level consistent with that objective but it is premature to conclude that they would remain 2% in years above that target." that is why they can have an aggressive gdp forecast. darrell: exactly right. committee members are euphoric

they are finally getting toward 2%. how long have they tried to get to 2%? there is a small risk they will put the brakes on at 2%, particularly on inflation indicator. david: is it too early to say this may be the direction of the fed under mr. powell? he is not an economist. he is a practitioner, a business guide, private equity. it is what president trump seems to want as well, growth. is this a direction, a mild adjustment for the fed? darrell: it is. a dovishing maybe not stance but a cautionary stance. they understand in the past, the fed, the policy mistake issue has been the end of cycles post-world war ii.

they are concerned about making a policy error and watching things like the yield curve flattening which is a high probability signpost of a future recession. alix: it points out they are truly data dependent and we may see a total change in how they communicate. meeting by meeting, the forecast of how they will do things, a totally different framework? weid: one thing i took away, will not get as far out of v iew to what the fed will be doing. we are likely to get to june as a practical matter. darrell: that is the reason you have a flat yield curve. term premium has come down. when it comes down, the markets don't have good insight into the future path of interest rates. that syncs up with what you're talking about the fed. alix: dollar versus two year yield, top-down, two-year yields rolling over, dollar index off the highs as a correlation

between them. modestly low from 2017. yesterday, ises the stronger dollar stronger two-year yield scenario reversing? darrell: a pause short-term. u.s. dollar resumes long-term resumes downward trajectory. shortedar was the most currencies of the g10 currencies out there. we are two thirds of the way covering those short positions. it probably has more short-term strength. i would be careful to extrapolate that to dollar strength or the rest of 2018 and 2019. david: what the fed is doing is not contained within the walls. even with their meeting, there was uncertainty in the marketplace because of trade. trade back in this morning. how does that factor into what the fed does when you have uncertainty about where we're

going with trade? every day there is a new front on trade. darrell: whether nafta or the auto issue with the european, canada and mexican partners, that tamps down business and consumer sentiment, which does it give a clear path going forward that the fed can get behind the idea that the economy is continuing to strengthen and accelerate. it puts that headwind in place, they will have to lead against in the coming months. we don't think there is huge risk to massive tariff and trade risks. i was surprised that the markets were surprised by autos. thesix things administration said, aluminum steel, autos, airlines, shipping and semi trucks. semis could be intellectual property. alix: small caps or defensive? darrell: not defenses.

it showed up strongly in the numbers, they have no place to hide. we think cyclicals are right. we like small caps. they buffer you against trade tensions and are the biggest benefactor of tax rates. outperformed, up double digits in the last month, outperforming by 7.5% quietly. no one is paying attention but it is happening. david: our very own fed whisperer. thank you for being with us. coming up, more on tariffs. this is bloomberg. ♪

♪ david: overnight we learned president trump investigating auto imports for possible threats to national security. welcome over the telephone, rufu s, representing u.s. companies

in trade. thank you for joining us. rufus: my pleasure. david: what do you make of this? i thought cars and national security? what is the conn obviously it ie industry in the u.s. it employs 1.3 million direct workers, more than 6 million indirect jobs. it is big. obviously, it is critical to our economy. but the national security connection is more tenuous and in terms of creating major trade conflict with our trading bigger --thisbut is much we know what happened with the steel national security action -- we now have restrictions and it is causing disruption in global trade.

this has much greater potential to intensify trade conflicts with our trading partners. ambassador toe the general agreement to tariffs and trade, if it is important to the economy, can't you use 232 for almost any industry? rufus: if they were to impose 232, that is a signal to the world that trade agreements no longer matter. you can use national security to defend any politically powerful industries. really what that tells the rest of the world is -- go ahead and do it to us, on things we export, aircraft, agriculture. the u.s. exports a tremendous trillion in goods

and services around the world. agreement that, wto and other trade agreements really mean anything because you can use national security as an excuse to defend any industry. david: talk for a moment on wto, imposed,tariffs are what is the likelihood we are sued? a possible confrontation down the road if president trump imposes tariffs and is told they are illegal and the president ignores that? rufus: obviously lots of countries would challenge this in the wto. i don't think they will wait for a ruling to retaliate. the lesson from steel is most of these countries are saying, this is not a national security action, this is a safeguard action to defend your industry.

under the wto safeguard agreement, countries don't have to wait for a ruling to take countermeasures if trade interests are adversely affected -- they can take a reciprocal action. we are already seeing this in steel, countries are announcing and putting in place retaliation against u.s. exports. this would mean a much larger retaliation. it would start a tariff escalation process around the world. the autos, first of all, u.s. auto industry is competitive globally. we produce 17 million vehicles last year which is close to record. we export 2 million vehicles a year. the retaliation would not just hit autos, it would hit soybeans and aircraft and other things. this is really a much wider problem than steel.

steel was significant to cause problems but this would be even more. alix: we are looking at a chart which shows imports of new cars to the u.s. mexico, canada, the top two. if we take president trump as a blueprint, this is an opening bid. opening bid and what would be appropriate measure and realistic that we could get down to? rufus: there is speculation they are doing this to put pressure on mexico, to agree to something in nafta negotiations. there have artie been discussions nafta about changed rules of origin, which would tighten up nafta and allow fewer finished autos to be exported from nafta with the benefits of nafta. nafta excuses 2.5% tariffs.

whichre talking 25%, would have a more restrictive effect. i don't think mexico and canada are going to respond favorably. i don't think it helps get a say nafta deal that is favorable. that is what the administration is calculating, that this will pressure mexico into agreeing to tightening rules under nafta. david: besides the president, who wants this? are u.s. companies clamoring for this? who really is a constituent group? rufus: certainly the big three u.s. auto companies have not been pushing for this kind of thing. they have been pushing for more access to foreign markets. we recently -- china announced it would cut tariffs. in otherigher tariffs countries than the u.s. on autos

and the industry wants to see better access to countries like japan and china and even europe where the tariff is 10%. they have not been clamoring or import protection. to be protecting an industry that is doing well in an economy that is churning. this is part of trump's vision of how to save the american economy but history shows this generalized protectionism doesn't help the economy in the long run. it hurts. david: we appreciate your time. alix: great point you make because the steel companies and aluminum companies were asking for it. excellent point. dow jones futures are rolling into negative territory. -- europeanocks stick -- european stock still clinging onto gains.

another asset classes, taking a look at the currency market, the dollar is off the lows of the session. the euro is up by 1/10 of 1%. we are waiting on the ecb to take a look at the inside track. down 3/10 ofar is 1% as the dollar continues to rise as nafta trade worries continue in the market. yields move higher in the u.s. back end and crude rolling over by 1%. opec plusing that russia will discuss gradual easing of the cuts in june. that is having a market impact despite the fact that there are lots of questions about what the motivation would be for something like that. david: a little more loyal out of russia -- more oil out of russia. alix: we do have details from

the ecb account. we have the risks that protectionism have become more pronounced. david: you have been covering that all morning. alix: the economic outlook is more uncertain and that caution is needed, and they can't rule out more pronounced weakening in demand. david: it is interesting how much the weakening is related to that. german exports are down, in part because of trade. alix: it was underlining the signs that signs of economic growth did not change. they are warning on the sidelines. sort of continuing to roll over, and this is the meeting at the end of april. a lot has transpired. italy increased rhetoric over taxes, trade, tariffs and etc. -- tariffs and -- tariffs etc.

david: deutsche bank is holding its annual general meeting in frankfurt, today. senior management has some explaining to do. the chairman admitted that mistakes have been made. >> we found that our bank's management showed a decision-making and of nottation deficit which did decline despite numerous discussions with the management board and the ceo. instead, we realized that there was a growing number of disagreements and conflicts among the management. our criticism focused on the fact that it plans and measures that had been promised were not tackled in a sufficiently disciplined and consistent manner. the bloombergome managing editor for finance from london. burgess up-to-date on what is going on so far in frankfurt? -- bring us up-to-date on what

is going on so far in frankfurt. >> a very tumultuous few months for the bank. a difficult shakeup in the -- hasent which resulted been there for just a little under two months. this comes as investors are frustrated because share prices are hovering not far from the record low, notwithstanding numerous attempts to refocus the company. we will see the bank shrinking significantly, particularly in the equities trading business. this is all done to find a way to grow the top line again and improve those bottom-line returns. david: we have already seen one loses job. another job in jeopardy at this point? >> he has been under a lot of

pressure and there has been frustration because he is overseeing the management decision of the last six years. it is hard for him to distance himself from that. having said that, he is obviously seeing the continuity which the bank clearly needs at the moment amid all this change, so it is the balance between wanting a clearer strategy, but also maintaining some continuity. david: we have seen headlines and they announced they will be cutting jobs, $22 billion. cuts, has them in any demonstration of what the foregoing strategy is? what are they going to be as opposed to what they are not going to be? elisa: this is where it gets trickier because the new ceo is under pressure to be coming up with a new plan and strategic focus.

the reality is the bank is in what itnstrained is trying to be, which is a large european investment bank. he is juggling that desire to become a leader firm but also within the constraints that he has on the top line. david: thank you so much. the united states, president trump is expected to sign into law, the comprehensive banking bill. we welcome now alison williams, bloomberg intelligence's senior analyst and neil barofsky. i want to start with alison. we have a full-screen summarizing what is coming out

of this law, increasing that threshold, reducing the number of banks facing the tougher tests. smaller banks get relief from voelker -- from volcker. alison: it is important for these smaller banks and if you think about the spirit of the changes, it is a sickly, let's focus their elected -- the regulation on the biggest banks that pose the biggest risk to the system and that is the focus. rolesk regulators, the are sort of aligned with that. if you think about the negative andcts of the regulations it has been especially big for the smallest banks that do not have the big base to leverage these costs. that relief is important. it does save them some of the compliance costs but then the other aspect is, it makes it

more beneficial for these banks to merge. costology is another big that is becoming strategically important. the largest banks have had an advantage in terms of being able and revolutionize what is happening in their businesses. this will help the smaller banks have that opportunity to merge and be a little bit more competitive. alix: and it might not be over. i am trying to work with my senate counterparts to say we've got the banking piece done. what we don't have is the capital market space. that is coming next and i hope we will get this done in the summer. alix: do we need a capital markets piece? neil: we don't need any of this, to be honest. it is a good thing that some of

the smallest community banks are going to be getting some relief under this bill. that should not hide the fact that what this bill does is an entirely unnecessary gift to the larger banks. it is obscured by the press and the descriptions. you have to look at this bill and amongst the the regulatory scheme going on right now in washington and the deregulatory zeal that only when it comes to the smaller banks but to the bigger banks. some of the banks that will benefit the most are not going to be the mom-and-pop banks. you are talking relief all the way up to $250 million in assets. david: are you focusing on the ones around $50 billion? are you talking about the really big ones? where is the big relief for them? neil: under this current bill, 50 to 250 has the chance to get out from under it.

you were talking about banks that have the potential to move the needle. when it comes to the idea of capital and what it means to have the hard leverage ratio to help make sure they don't make the same mistakes and are not as honorable to another crisis. in this bill, it is smaller things, things about certain classes of assets that are deemed less risky. banks thatelling the they can have less capital requirements when they are holding those assets. if this sounds familiar, it should because these are the thattypes of decisions wound up to the financial crisis. alix: give us the analyst perspective, alison. how much of that is true and how much of that is based on

internal control? ,lison: for the largest banks the bigger changes are yet to come. the leverage ratio that has been proposed and the stress rule that has been proposed, that is going to be meaningful for the largest u.s. banks that i cover. covered, the rules today really help the smallest banks. billion to $550 billion, it really makes them more competitive with the larger banks. in terms of capital, the leverage ratio with some of these proposals is sort of evolving to something that is more of a backstop which is what it is meant to be. everyone has to answer for themselves, or the regulators have to answer for us, how much capital is enough because

obviously you want to protect the system but you want to make sure there is capital available. alix: neil, do you see regional banks start to dip their toe further into wall street activities? neil: the incentive is going to be there. you are going to see consolidation. you will see some of these banks under the $50 billion threshold growing and you will see consolidation as they get closer to that $250 billion threshold. what makes this bill so significant is the signal it sends to the regulators. there has been all of this news recently on loosening requirements on banks. recentk about the fed's announcement, $120 billion of capital being released. that buffer becoming that much smaller. you are getting up into bank bailout type of money that we put into equity. this is congress telling the

regulators go ahead. we are in this deregulatory world now. i think back to the capstone of glass-steagall that led to the financial crisis. that bill did not tear down all of glass-steagall. that had been chipped away by regulators up to that point, but it was symbolic. i am wondering if we are having that moment now. the regulator saying go ahead, loosen up the capital. david: alison williams of bloomberg intelligence and neil barofsky, not making us feel better. thanks so much. i want to recap what happened with the accounts, this is the ecb minutes. it wastake a look, cautioned that uncertainty around the outlook had increased factors led to global and became more prominent and warranted. they want more details before they -- growth has rolled over

even more than that. great, the pmi's not german exports coming in the lowest since 2012 and increase rhetoric and italy. david: feeling a little bit soft. coming up, the justice department looking at bitcoin. a lot more on wall street beat. this is bloomberg. ♪

kaliey: this is bloomberg daybreak. coming up in the next hour, ken langone.

alix: we turn now to wall street at. first up, bit going crackdown. securing survival. rusal's ceo resigning in an effort to reduce sanctions. musk targets the media and a storm of tweets. musk hints big oil fuels critical media coverage of tesla. cryptocurrencies, the justice department has a criminal investigation going on into possible price gouging. we have it. david: how are you regulating

them? >> if you break the law, you are in trouble. david: it is not just with him. the justice department is also going after them. >> it is interesting to see a lot of momentum build on that side of the ledger. we had a lot of momentum in bitcoin specifically. you look at how the price really just went bananas, to use the technical term and then in 2018, it has come down. david: there were going to be fake trades. i did not know what watch trade was, but you basically trade with yourself. alix: how do you do that? david: you are on both sides of the trade. jason: you give the impression there is trading going on to get more people drawn in. alix: the lack of transparency, how do they even go about trying

to figure this out? talk about a dark pool. jason: that is the big question. david: we have to go to silicon valley and hire a bunch of young programmers. do you try to get people in the market on the platform that actually will be scrutinized like this? jason: it could be. a lot of his companies have are deserted to deal with this, with overseas markets. remember when we talked to -- they tried to bring nasdaq in. alix: here is the message from russia. please lift the sanctions, says rusal. they laid out a plan to get -- out and get the sanctions lifted. i did not think that would go down. jason: it is a bit of a surprise. i guess it is less of a surprise, given how intrinsic,

how much rusal is right in the middle of this global trade. andre talking roughly 17% this has real affects on the movement of commodities throughout the world. it is really important for a lot of people beyond the political, beyond the macroeconomic to really have this resolved in some way, shape or form. basically, this is the barker plan and they're going to cut his shareholding to below 50% and appoint a majority of independent directors. david: my question is, is that a trump happy with that -- is donald trump happy with that? jason: we will see. this is coming at the backdrop -- against the backdrop of a much broader terrorist this -- discussion.arriff

everything going on with the market.utomobile market david: number three, elon musk. there has been some negative coverage of elon musk and now we know why, it is the oil companies. jason: big oil. david: i think he may be talking about us. jason: i think he is talking about all the media and certainly the media that dares to be critical of him and especially tesla. this comes after he had that now , where henalyst call

talked about a boneheaded question and his response is to cante a site for the public rate the core truth of any article and track the credibility score. david: which is a double meeting, because -- double meaning because pravda means truth in russia. alix: what i love is basically, saying the oil companies and traditional auto companies are the bigger advertising players to media companies and that is why the negative articles are coming out. is there a traditional auto company anymore? david: when the ceo starts shooting the messenger, he or she has a bigger problem. he should be raising capital and making model threes. jason: this did get a lot of attention yesterday, not just from people in our business or wall street.

-- said you lie a lot. a war of words. element oftrumpian this. david: he has a big set of problems. he is a lot smarter than i am, so he must be right. many thanks to jason kelly. federal judge says president trump ticket critics on twitter are protected under the first amendment -- president trump's critics on twitter are protected under the first amendment. ♪ amendment. ♪

law, the president and the first amendment all in one story. a judge in new york issued a ruling in a case that twitter

users are broad -- twitter users brought against the president, saying you cannot shut us down. this is the critical part. the blocking of the individual plaintiffs as a result of the political views the expressed is indefensible under the first amendment. while we must recognize and are sensitive to the president's first amendment's right -- first he has usedghts, -- every singleccount day for presidential purposes and would people want to get complainet on and about it, he says i want to shut you down and there is a long-standing rule that you cannot do that. it definitely means of the office of the president is different from personal rights and that twitter is blurring the line for that. if he uses it to conduct policy

rather than tweeting out a photo like a dog. david: and the court was pretty clear on that. the judge went through all the ways he used it for public purposes. it is not clear whether it it was -- whether it was a private account. how do you enforce that ruling against the president? alix: interesting. it is not over. coming up, the outspoken, the fun ken langone. this is bloomberg. ♪

alix: it is national security,

stupid. president trump uses national security to impose tariffs on foreign -- on imported cars and trucks. deutsche bank cutting jobs. will that be enough? not your yellen's fed. fomc could not agree on anything. david: welcome to bloomberg: daybreak. i am david westin here with alix steel. alix: are you buying a car? david: fortunately i have a car, because prices are going to go up. i am not sure why. in the markets, a little bit of softness in equities. we are down by about two points. euro-dollar off the highs of the session. the ecb account from the late april meeting. they are warning of potential risks in the market, warning of potential growth issues.

this is before the disruption in italy and before we saw the latest tariff swing from the u.s.. in the treasury market, we are pretty much flat, down to 2.99. there was some buying in the backend, but that seems to have paired off a bit. russia saying that opec plus could discuss gradual easing of cuts in june. don't know if the saudi's are going to be into that. david: not the way to get to $80. alix: turkey's president is now launching his election campaign now. some of the highlights he is saying, that he is confident and he is also never coming in front of a nation empty-handed. the potential for the banks to finally start

raising rates. the lira is down again, today. the question being what is the relationship going to be going forward between erdogan and the central bank? david: a bloomberg headline came -- camee does not across saying he does not like the rates so high. the solution is to lower rates. alix: the is now 16.5%. argentina is 40%. how much more do you need to hike to gain confidence? david: as of this morning, it looks like 300 basis points was not enough to do the job. time now for the morning brief. initial jobless claims at 10:00 -- at 1:00 this afternoon, the u.s. treasury will sell $30 billion in seven-year notes.

learned that president trump is investigating auto imports for possible threats to national security. we welcome kevin cirilli, bloomberg's chief washington correspondent. i heard the president say there is something good coming from car manufacturers. i did not expect it to be this. kevin: president trump doing what he has done before and allowing the commerce department to launch these investigations, citing national security. if you look at what specifically this threat to auto import tariffs means, he is launching the probe on national security grounds, can sintering a tariff of up to 25 -- considering a tariff of up to 25%. likely, the business community in washington, d.c. will make their case known against this, the same way they have made their case known against the increased tariffs on steel and aluminum. we have seen negative reaction from german and chinese automakers.

this is part of the back and forth bilateral trade negotiations with china. wilbur ross will be heading to china next month. david: the question we have been asking is, whom is he doing this? guyspointed out the steel wanted these tariffs. thermer trade official with trade council said he was not sure this was right. >> they have not been clamoring for import protection and it is an odd time to be protecting an industry that is doing very well, in an economy that is turning -- that is really churning along. trump's envision of how to save the american economy, but history shows that this kind of generalized protectionism does not help your economy in the long run. david: explained the politics within the white house. who is clamoring for this? who are the constituents?

kevin: the politics are clearly formed by battleground states that formed key parts of trump's coalition. look no further than michigan. the policy is very much divided amongst the president jackie economic advisers. people like peter navarro advocating for what the president is doing. also seeing mobilization outside of that, including the likes of steve bannon. the last point i would make to the sound we just murdered -- we just heard is that on the senate floor, you heard from senator marco rubio. many going to be espousing in the more traditional business community in washington, the likes of the chamber of commerce are saying that the president should be -- should reconsider. alix: joining us now is ken langone, home depot cofounder and author of i love capitalism.

david: it is a great read. alix: we will get into that in a bit. thank you for being here. ken: thank you for having me. alix: you are still founder of home depot. ken: cofounder. alix: say you are still the ceo. ken: i was never an officer. roll with with me -- me. pretend in your imagination that you were ceo of home depot. what would you think about the tariff swing we heard yesterday from mr. trump and all we have heard going on from the white house? ken: i would have a much broader understanding. ken: what does -- alix: what does that mean? i am on intrigued by these people who make their living in politics, whether they are elected or they are consultants

or lobbyists. donald trump is the fever and anger ande is the disgust of the american people with their elected officials. 2016 didcan people in what is believed to be of original coney and thing. they elected president trump fair and square. this nonsense that he did not win the popular vote. how do we feel about tariffs? you tell us the rules, we will play by them and do everything we can to win. alix: you don't get the memo and then all of a sudden, it is law and you have to make changes. capital spending expectations we have seen, falling off a cliff. how could you make any cash allocation decisions as a ceo? ken: as long as i am getting demand for my product and if i

am outstripping my capacity to take care of that demand, i'm going to have capital spending. at the end of the day, this is all noise. what we are seeing here with tariffs is posturing and jockeying. we all need each other on this earth. .elp me out if you go back to basic economics. if you make guns better than i make guns but i make butter better than you make butter, then i make butter and you make guns. we have nations now that manufacture cars. explain to me how did our put 100allow germany to -- to put it 100% tariffs on cars we make here to sell to germany and yet all the cars that germany makes to sell here only has a 2.5% tariff? that is a bad trade. the people that made these deals did not have the slightest idea what the hell they were doing.

one of the things we received -- we are seeing is the powers that be in washington are fighting because we are waking up to a lot of bad deals that were made. do we blow up the world to correct those things? we don't. we sit and posture and saber rattle. i have no doubt this will all work out. china has already said this week that they are going to allow more cars. buick's biggest market in the world today is china. david: where did they make those cars? ken: here. david: know, they make them in china. -- no, they make them in china. day, whate end of the drives people more than anything else is their wallet. people vote with their wallet.

this is what these geniuses who spent their lives studying polls and telling people what they need and don't need. i am not going to comment on trump or his behavior. i'm just going to say one thing. i see the american people saying wait a minute, enough. we have had enough of this. public education, i did not vote for obama but we elected a black man twice. that speaks volumes about us as a nation. if i was obama, the first and 2009, i wouldin say please judge me by one thing , how much i improve public education in america. why? because that is where most of the minority kids go. i am not going to embarrass you but i bet most of the people that work here if they can afford it, send their kids to a catholic school or private school.

i am very much involved in a charter school in harlem. our kids are flying. if you treat these kids right and offer them instruction, that is better for them and they will absorb it. what i'm saying is, all of this noise. you want to put a big dent in inequality,wealth education. david: so much to talk about. alix: you are fired up. david: we will get back to you in just a second, ken langone, home depot cofounder. day,ther big story of the deutsche bank is holding their general meeting in frankfurt and senior management has some explain to do, including senior chair achleitner. we are joined by the union investment portfolio manager and go to bank shareholder.

thank you for joining us. give us your view on the investments you made in deutsche bank? they are changing the strategies today. it is a step in the right direction. clarityto have far more and we need more data points, how they want to restructure the investment bank and just looking at the cost, it is not enough. david: in my experience, you can never cut yourself to success. why haven't they come up with a plan for the investment bank thus far? ingo: they have to look to the u.s. the big issues are the u.s., they want to focus -- refocus on

europe and be closer to their core market, back to the roots and shrink the investment banking unit. they have to drive investment banking down because 75% of production is tied to investment banking. 50% of the profits are generated in this unit. we have to wait and see what the bank wants to do. -- it are you in favor has been reported they're going to be dialing back in the u.s. like you said. can they do that and not affect topline? you need to figure out ways to cut the cost without losing revenue. ingo: at some point in time, you also have to cut revenue.

if you shrink the balance sheet, it will have a correlation to the top line. reason, but toic bank has to focus on their businesses where they have a .igh market share they should not be markets that are highly capital-intensive that have a high income ratio. to cut out global equities is the right step because cost income is very high. on the other hand, you can get a balance sheet release. announcement, but not the only one and we have to see more. alix: are you buying shares? ingo: we currently hold shares in deutsche bank. speich of union investment, thank you.

general electric shares were already down this year, but they got worse yesterday when the ceo spoke at a ge conference. he admitted they were facing struggles in their gas turbine business. he said things are looking better for aviation and health care. back with us now is ken langone, home depot cofounder. tell us about turning around a company. you advise a lot of ceos. you take a look at ge. what does it take to take a successful company and turn it around? ken: typically? a change of faces. don't go with the guys that got you in the ditch. is dark side of capitalism that there is no room for cronyism or favorites. as tough as it is, you've got to make tough decisions. a good example, i have the good fortune to be invited on the ge board at the end of the last

century. i will tell you how far ge has fallen. when i was asked, i could not believe i was going to be invited to serve on the board of this fabulous company. if there was a cherry on the sundae, that was it. look at general election -- general electric in the last 17 years. at the first six or seven years, coasting on jack's record. the board has to take some of the responsibility. alix: exactly right. when the ceo spoke yesterday, here is what he had to say about the company he inherited. we are moving into this new era with the company, there are certain things we can do immediately and there are certain things that are going to take time. we've had a lot of interaction and interwoven activity.

as a principle, we are moving to a much smaller corporate. three years ago, we were talking about it being a huge oil services business. ken: strategy emanates from the ceo through the board of directors. they went in the oil and gas business at the wrong time. theybought a business turned down years before the steam business. it was a disaster. they went into the security business. it was like the flavor to sure -- flavor de jour. where a decision of that size is typically blessed and voted upon by the board of directors, and full disclosure, jack felt i should leave the board because i was a bad boy. i had a fortune magazine interview and i used some colorful language, shall i say.

alix: not you. ken: oh yes. see -- yous, you can can say it was sour grapes but i was not sour grapes. a lot of things going on said to me what is going on? david: i would think that the most important job of the board is to make sure they have the right ceo. ken: the biggest job of all. david: that is a typical -- a difficult relationship. a lot of board members got chosen by the ceo. at what point does the board step in and say i think we have the wrong guy? alix: a lot of ceos are also the board chair. ken: when you are paying your board members $350,000 per year and their previous position, their full-time career was $200,000 and now they are making $1 million a year? there is an awful lot of

reservation about rocking the boat. i have sat in board meetings and i have looked around and i have watched people sit there, not knowing what they're listening to and nobody raises their hand. boards need to be -- i will tell you about the home depot board. from the day we started, it was like a food fight every time we met. we did not hold back, and we made tough decisions and we made decisions that some people felt like maybe you should have done or maybe you should have done that. 1999e and i sat down in and made a decision that if something happened to arthur, we wouldn't have anyone there. it reached the point where it was time to go in separate directions. bob did a great thing. he brought frank blake in. look what frank blake did. notard needs to be

adversarial with the ceo, but they need to understand their responsibilities. you have to ask yourself the question. all of these strategic decisions made by ge, where the hell was the board? --now that one key directive go -- he director said she does not remember ever doing a retrospective on a deal they did. you come to me, you are the chairman and you say i want to buy this company and here is what we expect to happen. don't i go back to years and say ok, we did that and tell me how we are doing? never once was there a retrospective. they kept piling one bad deal on another. friends- i had a lot of that were on the ge board. the fact of the matter is, where the hell were they?

whatever he did, it was blessed by the board. david: and his appointment was blessed by the board. ken: i voted for him. i was on the committee. i voted for jeff to get the job and then as a director, i voted on the board. the point is, how many years the you need to watch somebody before you say what is going on? breathed every single aspect of the company. , they would point go from business to business every 90 days, who is your success, what are your problems, what can we do to help you at ge? they drilled and drilled. he ran the company. what jack had was this uncanny ability to manage people and manage businesses. that was gone.

it was all strategy. we're going to do this and do that. they were in the water business and got out of the water business. david: this takes me back to your book. if capitalism is going to work, you need managers like that and we don't have many of those kinds of managers. ken: i disagree. we have a lot of people like jack, young people. david: i want to quote from peggy noonan. this is part of what she had to say. ken langone's written autobiography that conveys the excitement of business of starting an enterprise that creates a job that creates a family, of the joy of the deal and the place of imagination in the making of a career. pretty high praise. ken: peggy noonan is the best. i have a great affection. my wife and i, every saturday morning, we run to see who gets the fronts -- the front section

of the wall street journal. david: let's go back to capitalism and whether it is going to flourish are not. i have seen ceos on both sides. i have been in companies with ceos on both -- of both types. you know tom murphy. ken: they -- fabulous leaders. david: i have been with companies who is ceo's to not run a quite as well. the outside world often cannot tell the difference. ken: you want the guy who wants to be ceo to get something done as opposed to the guy who wants to be ceo so he can say he is ceo. alix: how do you tell the difference? ken: sometimes you don't know until you make the decision, but when you make the mistake, pull the plug. how many years did the board of beforers of ge need seeing that it went into horrible disrepair. the story i read was about a man who worked at an appliance plant

in illinois. this man put all of his money over the years he worked at ge into ge stock. he had $700,000 worth of stock. now is got $200,000 worth of stock. the same number of shares. he's wearing about how he is going to live in his old age. does he have to go back to work? i have to ever one thing is a capitalist. my decisions -- remember one thing as a capitalist. my decisions are going to impact a whole lot of people who are betting on me doing the right thing. that is the awesome responsibility we have as capitalists. depot goeople at home to work everyday. they are well-paid. the thing i love most about our company, we have 3000 kids that just got out of high school. they started pushing carts in the lot. that is their job. every mold -- they are multimillionaires today.

that's capitalism as it is supposed to work. david: indulge me for a second. i loved your book. there was one page i love the most. that's him in the middle, tom murphy with ken langone, mild boss. -- let meost humble tell you what happened with him and stan burke. they were out of the same pot. murphy walks in to burke and he says you know, i have been ceo for a long time. how about you taking over and i will take your job? they flipped. they didn't care. they wanted to get the job done. look at what bob grossman has done with that fabulous medical center. look at what he has done in 11 years. the ratings just came out and our medical school ranks number three in america. harvard one, hopkins is two.

all i would tell harvard and hopkins is you better watch your back. tom murphy was a former chairman. david: he loves it. ken langone is going to be staying with us. alix: the latest read on u.s. unemployment. we will break down initial u.s. jobless claims, next. a pretty soft equity market as well. dow jones futures picking up off by about -- this is bloomberg. ♪ >

alix: this is bloomberg daybreak. i am on set with the fiery ken langone. dow jones futures just -- rolling over just a touch. european stocks flipping into

negative territory. it was the story of a weaker dollar. by 3/10 of 1% up despite the fact that the ecb accounts for the late meeting were a little concerned. trade and seeing continuing nafta issues. ,n the u.s., claims her out 234,000 initial jobless claims -- claims are out, 234,000 initial jobless claims. we still have a pretty tight labor market. david: we have given up saying how long can they go? go, we said they could not keep adding jobs every month but yet it has kicked that it has kept going. alix: that is exactly what confused the fed. peter coy is with us and you know it, ken langone.

can we bring up that quote, saying several of them noted that which development showed little development -- little evidence of overheating in the labor market with economic growth expected to remain above trend and the unemployment rate to remain -- to remain below normal rates. sawral participants also scope for a strong labor market to continue to draw individuals into the workforce. this is stunning to me. this number was high. the 234,000 is above the recent trend. it has been locked in around 229,000. if you average it out, you cannot read much into a single week, but we have to read every single tea leaf as it comes in. the fed has been fooled many times in the thinking inflation was here and that has not

happened -- and then it has not happened. once bitten twice shy, they are not going to push rates higher until it is clear that inflation is here. they are going to let it go above 2%. that is what they mean by a symmetric target. david: how are we getting this many new jobs? where are they coming from? mathematically, they are coming out of the new entrance to the labor force plus people who were thought to be out of the labor force coming back. ken: because they could not get a job. when you stop looking for a job, you are no longer unemployed. they are not coming back in. peter: living that group and coming into the employed group. ken: they vanished into thin air

and they showed up. david: how much spare capacity do we have? not much? ken: i can tell you right now, and one of our businesses, we are having a hell of a time. i was talking to jimmy haggard and he was telling me the bottleneck in his business is shipments, not demand. peter: we are seeing that. alix: what do you do with an economy that is so bifurcated? and you arel spot seeing wage increases and a tighter market. there are a whole host of businesses that we are not seeing that. peter: the fed cannot be looking at trying to solve the problems of each sector of the economy. it has a few blunt instruments and it has to set an interest rate that is important to the economy as a whole. was only one interest

rate, so it cannot be fine-tuning. ,en: slice it anyway you want we own the next 25 years unless we work overtime to screw it up. alix: what do you mean? ken: we've got some things to deal with. entitlements, public education. as a look at the world and i look at us, if we can get our stuff together and i am optimistic we will, i think america owns the next 25 years. we have to stay sharp and we have to make some sacrifices. if we do those things, we address the issue of the deficit. if we address this humongous national debt, i think we are going to be in great shape. david: that sounds great, but if we can address the issue of the deficit, we're going in the wrong direction. we are borrowing more and more money. ken: i agree. raisedneither candidate

the question of entitlements in the last election, except that we were going to keep them. ken: one of my doing getting a check from the u.s. government every month? david: i was going to ask that. ken: how to what rationalize it in my head? i have never cashed one social security check. i endorse it over to a charity every single month because i don't want to cash the check. i should not get it, but they can use it and they cash it and they use it. people like me have to take a step back and say i won, i won big. it is my time to sit and say i won. i don't need it. i use the analogy of fire insurance. you buy fire insurance and you pray you never going -- you never claim it. year if you gohe and saynsurance company giving my money back, they put the risk in. i think eventually, we will.

i'm hoping we will. david: a question of employment and where the jobs are going, a lot of these industries are going through fundamental transportation. we spoke with the ceo of baxter international. he talked about the changes he sees on the horizon. ken: good guide by the way. he used to run tai: -- he used to run tyco. >> there is a shift between acute-care into less expensive -- the ability for the hospitals to come together and merge, but the volume of patients is not changing. you have people getting sick, going to the hospital, getting treatment. david: you devoted a good part an institution you love. do you agree with him? are we seeing a shift away from hospitals? ken: we are moving more and more

to ambulatory care. anytime we have a chance to send a patient home, it is better for the patient, much better for the patient. everythingy period, is right about it. we just put up a new pavilion we are opening up next week. we are going to have all private rooms. anything we can do to get a patient out of the hospital as fast as we can is great for them and great for us. alix: but is a great for the workers? you meanwas -- ken: the nurses? alix: hospitals with all the nurses, they're going to get paid more. they consolidate and those people go into private home health care for the elderly. they are going to make half of that. ken: who is going to take care of the people when they go home? alix: i can tell you that those people make virtually no money compared to someone who works in a hospital. ken: leave the economy to do

what it has to do naturally. don't take artificial mechanisms to make it happen. now, if i you right was not 82 but 21, i would be looking hard at how can i get into that market of old people. the fastest-growing age group in people 100 years old and older. we are living longer, living better. -- we don'te about have polio anymore. think of the things, i can remember i could not swim because they had a polio epidemic. that is gone. more importantly, we are vibrant. people are living older and having richer lives. alix: no doubt that that is an

area you want to get in but there is a difference in terms of that kind of industry that is going to have the most growth in terms of the workers they employed and how much they pay versus the growth of home depot. we are moving as fast as we can to ambulatory care where appropriate. we moving to private rooms, very important. we have not laid one person off. we are hiring people. the market is growing. alix: what is the rate? how much are you paying them? what weare paying them have to pay them to be competitive. that is going to happen in the home health care market, too. it is a growing market. thank god i can still get around but one day i'm sure i will be in some room and some guy is off. to take the slobber david: that is a long ways away.

peter: it would be nice if the home help -- health aide provided better care for people in the home. ken: bingo. exactly. alix: excellent point. ken: let's go back to education. they need to be educated first for the basics to take the next level. david: peter coy of bloomberg businessweek, thank you for being with us. ken langone, sticking with us. let's get an update on headlines outside the business world. we have kailey leinz with "first word news." american education allies do not think much of president trump's push for tariffs on imported cars and trucks. the german chancellor said her country is committed to free and fair trade. china responded by announcing it will reduce tariffs on a range of imported consumer goods.

north korea says it has demolished its nuclear test site. an international group of reporters travel to a mountainous region to witness the demolition. the event was seen as a goodwill gesture to the u.s. now there are questions on -- month'st not summit between kim jong-un and president trump will take place. the u.s. government is ratcheting up scrutiny of the red-hot little currency market. -- digital currency market. authorities worry that virtual currencies are susceptible to fraud for a number of reasons. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. alix: it is a read on the u.s. housing market. we going to break down what to expect. today, you canin

listen to jonathan ferro from 7:00 to 9:00 in new york. surveillance can be heard in new york, boston, the bay area and all across the u.s. on sirius xm satellite radio. ♪

kaliey: this is bloomberg daybreak. coming up later today on bloomberg markets, uber's general manager for europe. david: u.s. existing home sales data for april is due out in just under 90 minutes. new home sales data out yesterday showed that purchases fell last month, indicating that

rising borrowing costs and property prices may be limiting the market's progress. there is a look at the trend. the blue line isthe blue line ie line is ownership. rental went way up after the crisis in 2008. at the end, that has been coming together. maybe people are buying a will that more. joining us now is richardson -- is nila richardson. welcome. nela: we are in a place where prices are rising and they are faster.ster and prices hit $300,000 for the first time ever. that is a huge psychological threshold. $300,000 was not even considered a starter home, it was considered expensive. now that is an entry-level home

and a lot of markets. david: also luxury homes. i thought it would go the other way because of the state and local tax reduction issued. that is not happening. nela: this quarter was the first quarter we have seen that tax in place. inventory is a bigger barrier and a bigger concern for homebuyers than taxes. inventory is superseding the tax cap. people are trying to buy. they are trying to buy more with less and that is leading to higher prices, even in the luxury market. alix: i'm wondering how that dovetails with a rise for -- in the u.s. a 30 year mortgage rate, 4.4%. -3.25%. how do i move? housing,m panel is fuel and utilities costs. negative, but they have been rising. gasoline prices are also up.

how to a factor all of that in? could do a whole other book on how to live in the u.s. making calculating decisions in all factors of their lives. we know that in highly ranked schools, house prices are higher. people look for a school first and e-house second. then you have to calculate taxes. are you going to alert -- are you going to live in new jersey? expect to have a higher tax rate. are you going to move south or west? expecting not to get the school quality or the density. are you going to move to california for the great jobs are? you may not be able to buy a house. all of these factors are coming into play with what used to be a really simple decision. i have kids, i want to buy a house. it is now an economic decision and a lifestyle choice. nexti can't tell you the

three months, six months, looking out five or 10 years, the homebuilding industry is going to do very well. kids are starting to reverse the trend of living with their parents. interesting things are happening. kids are not as attached to cars as when i grew up. i could not wait to be 16 until -- so i could drive a car. kids could give a hoot less. don't date yourself. i am 80. you are a kid. david: i am 65. ken: this is an adjustment. they are used to paying 3.25%. now the rates bump up and you say an extra $30 a month in my mortgage. the fact is, once they adjust to that. it was only 35 years ago, 37 years ago that interest rates were over 20% in the world did not come to an end.

alix: house prices were not as high. ken: the point is, it was still a homebuilding industry. it did not stop or go away. we need to do some adjusting. money needs to get paid. david: you mention the millennials are certain to come out of their parents homes. -- parents' homes. home depot really drives their business. ken: just look around and see what is going on. you talk about rents into new home sales. urijah point when somebody wakes up and says i don't get anything for the rent. if i buy a house -- what is good, we have done away with some of the excesses. i don't think it is wrong to say you have to have 20% down. that is healthy. a lot of people bought homes that buried them because they were in a whole from the day they got the mortgage. pitch.ith is my

alix: is that going to be the trend? nela: i hope not. i think there -- they are healthy now. i would like to see them relaxed a bit. people who have yet -- who have less than perfect credit scores used to buy cheaper houses so the overall risk was lax. what was the problem during the financial crisis was people with low credit scores and low income were buying expensive homes and nobody was checking their ability to pay. havenot that because you you have a life event and something happens and now you have imperfect credit, that you should be limited to from homeownership. we are not that unforgiving in our capitalist economy. we just don't want to see the exotic risk taken by the financials. david: if you want to read about ken langone jakey decision, you want to buy his book. ken: absolutely.

we pay $41,000 for our first house. we wanted our sons to go to good schools, and they did. david: we have a viewer who is writing in with a question that is perfect for you. he says what advice would you give to someone starting their career? ken: work your ass off. when you get tired, work twice as hard. don't give up. the realistic about your career path. be realistic about -- don't ever take a job or you could not be excited about going there every day. on earthno worse hell then waking up and saying i have to go to that job again. alix: what career would you go in, now? david: would you go back to wall street? ken: wall street is gone. the wall street i know is no longer there.

it's all electronics. kids, don't go to wall street. go out and learned business. go learn about payroll. learn about how to make a business work. if you have to take a lesser income, do it to learn something. that is my advice. -- if i had to pay to go to work every day, that is how much i loved my work. i still love my work right now. i am having the time of my life. david: nela richardson of redfin and ken langone, home depot cofounder, i cannot thank you enough for being here. and: coming up, oil prices more on what i am watching. ♪

alix: what i am watching his oil. it was italy. oil is up by about 1%. this is what happened when it moved lower at 7:00. russia said that opec and plus good wind up discussing a wind down in supply cuts. that is the big question is when they will start coming into the market. this is the best time. it as well off-line, libya offline and the iran sanctions. how much price are they willing to take off? they want that $80. you can't get that if you keep moving. at saudike a look versus russia monthly oil output, you can see how much a bigger producer currently russia is as saudi has taken a big brunt of it.

the distinction is, these guys are not going to react until they see a tight market. they are not going to preempt it. how long is it going to take to see that? david: that chart suggests saudi arabia is subsidizing russia. alix: russia has cut as well. not as much, but they have complied. the saudi's new they were going to have to cut more. we will be discussing this at 1:00. tune in to my show we talk about deputies with oil and how long he can stay. coming up next, peter huber of deutsche bank joining jonathan ferro. this is bloomberg. ♪

>> 30 minutes until the start of trading, this is the countdown to the open.

the united states considering hitting the auto industry with paris. cutting 7000 jobs. another ceo looking to slash costs and boost profits. the turkish lira resuming its flight despite intervention. 30 minutes away from the open. much price action. futures just a little bit softer. down by five points. fx market, just a dealer -- a little bit of a bid into treasury. that is the market action. here is the news. the president threatening tariffs on imported cars and trucks citing national security concerns. u.s. allies, the largest