>> we continue to be encouraged by the constructive atmosphere that i think both countries are bringing to the table. there is a lot of goodwill. a lot we are trying to do in a short period of time. we are working very intensely. mark: president trump says the u.s. and canada are probably on track to agree on how to revise the trade pact by tomorrow. the united nation says iran is complying with the nuclear agreement reached in 2015 with major power even after the withdrawal of the u.s. the international atomic energy agency had access to all sites in iran that it needed to do this, and is not just has kept within limits of uranium stockpiles. about 1000 people protested near india's parliament today, demanding the immediate release of five prominent rights activists who were arrested in a

countrywide crackdown this week. police have accused the five of delivering speeches that triggered protests and violence in december. the government said the rebels are india's biggest internal security threat. carrying theplane body of senator john mccain and his family is about to leave phoenix airport en route to washington. you are watching a live picture there now. that was a memorial service in phoenix today attended by over 3000 people. among the speakers this afternoon, mccain's close friend in the senate, joe biden. he said he believes senator mccain's death has hit people so hard because they knew he believed so deeply and so forcefully in the soul of america. he also remember the time he and john mccain received an award for civility and bipartisanship. >> classic john. one allegany colleague, hundreds

of people there. the senate was in session, so he spoke first. and as he walked up to stage and i walked on, he looked at me and said, joe, don't take it thatnal, and he left personal -- personal, but i do not know what to say, and he left. mark: senator mccain will be buried sunday at the u.s. naval academy in annapolis, maryland. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. crumpton. this is bloomberg. ♪ caroline: and bloomberg

headquarters in new york, i'm caroline hyde. joe: i'm joe weisenthal. caroline: 30 minutes from the trade. stocks all below. what did you miss? caroline: under pressure. tariffs on $200 billion in chinese imports. meanwhile, canada is still waiting in the wings. the deadline for canada to join the trade agreement between the u.s. and mexico tomorrow. caroline: argentina's emergency measure failed. worsening the peso. the biggest hit in the trade war yet. president trump wants to move ahead with a plan to impose an additional round of terrorists on $200 billion in chinese imports. the news that the s&p 500 to the lowest levels on the day.

let's bring in sean. you helped break this story. remind us why next week might be that the day for when we get the tariffs announced. >> we have been building to this all summer. donald trump has made no secret that he wants to raise the pressure on beijing and that he thinks only when he gets maximum pressure will he get the deal he wants out of the chinese. the big deadline next week is the expiry of september 6 of od on thisment peri list of products where $200 billion in annual trade that he would like to slap a tariff on. that is a trigger point. what we are told is he does not want to wait around. he wants to move quickly on this. joe: we are not seeing a very big reaction, but we saw a reaction in the markets when the headlines hit. we are not even down a half a percent. is the view of traders right now it does not matter?

the markets overcome it. was another headline? cameron: they are mostly on the beach. joe: someone has to be here. slaying ahich may little bit the lack of interest but it is a pavlovian thing. we have had so many negative trait headlines over the last six to eight months. inevitably, it has benefited you to buy the dip. lisa: there has been a little bit of a get. i am curious what your reaction has been to this group if you have got any feedback or anyone else associated with the administration. shawn: we have not heard back yet from the administration. waiting to hear back from the u.s. trade representative's office and the white house on this. this is a move that a lot of people were expecting in washington. what is key to what we are reporting today is the speed at which donald trump wants to go ahead with this.

one thing we do out at the white house is a feedback loop between donald trump and the markets. he looks at the market reaction and says, see? there is nothing so wrong with my tariffs. there is no problem. all the people arguing against this thing are crying wolf. he feels like this is the right time to be doing this permit the economy looks strong. second-quarter growth upgraded to 4.2% this week. unemployment is low. a lot of people in this industry should think if you will wait a trade war, you will do it now. the markets are helping him make the argument. caroline: the pain being felt in emerging markets at the moment because we saw further concern about argentina or turkey. iran did dip . we were talking earlier and saying actually, you might see the pboc actually at a go now.

we will see that we can. cameron: that is the million-dollar question. there are two arguments in favor of the pboc actions to stabilize. one is that it wasn't all of olive branch to the u.s. to a piece trump. if that was the intent, it work, whichnot would support the point that they would pull the offer, but there is another strand, which is the fear of a replay of what we saw in 2015-2016 and the capital flight episode that led to a significant drawdown in fx reserves in china, tightening of liquidity, and it was generally a pretty bad thing for both government growth and chinese markets. now given the attention we have seen in turkey and argentina, there is a risk obviously.

i think china is very sensitive about not being the baby that gives thrown out with the bathwater if you will of the lesser the end credits. geopolitics fit in? what is unusual or unique about this in this version, the way it's is explicitly to combine the two agendas of china very much intermingling with the north korea agenda. does the fact that the white house is ready to go ahead with this tell us anything about where it sees that progress? shawn: sure. we have seen that this week with the president just yesterday tweeting out a statement which mentioned him another person talking about north korea and blaming the chinese for pressuring the north koreans into not playing ball in the nuclear talks. s that he famously launched in singapore this year.

if you step back from that, there is a lot of people in this white house, including the president, that think they are at a historical moment here. that it is time to take on china. that u.s. policy has not worked in recent decades, and that this is an existential fight, a fight that is not just about the economy or the markets today. it is about the markets of our children and so on. so people like u.s. trade representative is out there and has been out there for a long time talking about this as an existential five and one that will take a wild. that is the other point here. this is not something that will end in the next couple months. this is something that will really drag on friday while here. in the past, they have been talking about two votes who talk to the chinese a lot. they are not looking to stand down in beijing. someone put it to me a few minutes ago that the chinese believe they can eat a lot more bitterness the donald trump.

lisa: i would love to get your insights. president trump looks at this reaction and thinks, fantastic, that are giving me a clean slate to just go ahead and do this. do you think these $200 billion will slow the market or do you think of on vacation and not willing to rethink the entire thesis right now? cameron: i would very much go with the latter because if the $200 billion is a permitted -- is implemented, that is a significant economic impact, much more than anything we have seen today. which is not a good thing. ae: do traders think there is place where he would backtrack? cameron: i would presume yes, but we are so far away. he has made it clear that he thinks he is going with house money. if you have a big stack of house money, you can draw that down

quite a ways before you have to worry about your own finances. lisa: house money indeed. shawn in washington, great scoop. york, thank you for your perspective, but that you. we are diving into economic data as we have fresh readings. three charts you cannot miss, coming up next. this is bloomberg. ♪ . ♪

joe: "what'd you miss?" we got economic data this morning so let's dig into the numbers with matt. brought us some charts as usual. let's start out talking about inflation with a chart that you titled "not too hot." some of these headline numbers picking up to highs.

when you break it down, not so hot. >> u.s. inflation, the white line in this chart, funnily rose to 2% in july. it is the highest in six years. it has been below target for six years. so that is good news from the fed perspective. the other two lines show you measures of inflation that really only focus on the components related to labor market tightness we have been talking about. stock inn shows watson. wrotemous economists who textbooks that people use. that is the blue line. procyclicalhows the inflation rate, which is basically trying to get to the same thing. neither of those are really taking off so this reinforces the notion that inflation may be writing a little bit, but if you think the labor market is really are definitely not

seeing that having a big impact on inflation just yet. still flows study. that supports the outlook for inflation going forward. caroline: gradual hikes still set to come. >> yes. it is interesting the way this is all playing out in interest rate right now because right now, the big debate is, what is the fed going to do a year from now once they get to their estimate of the so-called neutral rate? the blue line shows the one-month rate going forward. this is a trader metric of people look at to see where their terminal right in the fed hiking cycle will be. the white line shows the 10 year break inflation rate. if you look at the blue line, it tells a really interesting story. it is really low in the middle of the chart after brexit. a lot pessimism. it was 1%. you can see that any the november election all of a sudden it surged up to 2% after the november 2016 election because people will re-rated their idea of where the neutral rate was going to be. it was 2% for a long time, and then we get the tax cuts at the end of last year and that jumped

the level of to 2.5%. this, kind of looks like investors are expecting the fed to stop at 2.4% asked year -- next year. inflation expectations are not going anywhere. lisa: i want to talk about money. mine and how i feel about it. how selfish of me. i cannot help myself. just in general, american consumers, how they are feeling about their finances. they feel pretty good. talk about it. matthew: i wanted to show you this chart because i think this is what casts some doubt on the notion that they might pause next year to 2.5%. the yellow line shows the percentage of consumers in our consumer comfort survey. it shows it is not good. coming down a lot. impliesan see what that

is people's finances have been getting better. typically, this leads the non-and women rate so we should see further gains in employment over the next several months. the this means is unemployment rate is probably going to go lower. this will put more pressure on the fed to continue raising interest rates even though the outlook for inflation looks benign. that is why maybe once we get to next year we will see another step up in interest rates. lisa: given all of that, given the fact that we have not seen wage increases that have kept pace with the pace of inflation, why are we seeing that given that everything else looks great? matthew: we are going to get that data next friday. there are a lot of explanations. one of the reasons is unemployment rate may be overstating the health of the labor market. if you look at something like rate,5 to 54 non-up limit it actually lines of a lot better with wage growth. that has not improved anywhere

near as much as the other women rate. that -- the unemployment rate. of the sharpign and television like we have seen in previous cycles. not much cause for concern at the moment, but that does not mean the fed will stop raising rate. lisa: cause for concern or optimism depending on what side you are on. caroline: now let's get to gaming. shares of electronic arts are down after the video game company delayed an update on battlefield, one of its biggest franchises. with more, germane. they cannot keep up with fortnight. >> there are two components to the story. and will reveal. but let's start with mobile revenue. we have a chart that kind of shows how that has been performing. the most recent quarter they had, all of their revenue growth came from mobile despite the fact that about 80% of their business is still dependent on pcs and consoles.

this is a big issue. they have been trying to transition to the platforms has,ar to what "fortnite" and the update all caps off it was going to be a big weight of that. but because it has been pushed back 4-4.5 weeks or so, there is concern that will cut into revenue growth. suntrust analysts even saying that will knock about $.39 offer vps for the year. joe: i never played any of these years but again they are delaying is very similar to "fortnite," one of these battle games. romaine: oh, joe. come on. similar? no. joe: i don't know anything about this. romaine: battlefield is basically you and a couple people playing together as a team. "fortnite" is a cultural phenomenon, a battle royale. you get 100 people all jumping at this game, all fighting each other.last man standing , last woman standing, that is the one who wins.

you got dances and everything. a cultural phenomenon. everyone wants to hitch their writing to this. not just ea. everyone wants a piece of this action. that was ea's attempt to hitch it's right into that, but got to wait 4 more weeks to try it out then. lisa: can you do it? romaine: no. [laughter] lisa: thank you so much. we see why the route in argentine of the argentine peso is worsening. we will be live in buenos aires. this is bloomberg. ♪

joe: "what'd you miss?" argentina's currency crisis taking a turn for the worst. in its latest effort to shore up the currency, the country's central bank raised its benchmark rates to 60%. that hike coming a day after the

president speeded up the payment. joining us now is patrick gillespie joining us from buenos aires. patrick, extraordinary day for the market. do the central bank or administration do given how fast the market is losing confidence in the currency? supportivee most point is this is a confidence of crisis according to every analyst we have been speaking with. a lack of communication and consistent strategy is marine republican argentina and investors. people are asking for questions and answers are getting more questions in return. no communication today after the speech. there has been little communication from the central rate hike a historic to 60% today. a worsening economic outlook and little communication link from

the leadership in argentina. lisa: patrick, given how quickly the peso is losing value versus the dollar, are people using dollars at this point? what is it like when you go to a market to buy something? patrick: that is a great question. argentines have a freeze here that says we are obsessed with dollars. it is very true and people are dollarizing as they say here a lot faster than they used to. during the ongoing currency crisis they have deposited second and million dollars in their bank accounts as the view is the peso will lose value. people in the streets today are wondering, should i buy dollars right now, wait for the peso to decline later in the day, and then exchange them? some very tangible evidence of people changing their activity, businesses, stopping trades, stopping orders. because they cannot quote prices right now so you are seeing this not only come into a market impact, but very much a tangible

real person impact. caroline: on the streets with you at the moment. give us a sense of the essence. you have not heard from the president again. he is asking for more help from the imf but how much time does he have? patrick: very good question. there is a since the government is running out of time to provide more clarity to the public and investors. the president is supposed to come to new york in september to meet with investors to clear up any doubts about argentina's ability to cover all of the debt payments for the rest of this year and next year. time is running short for the government to explain itself to create a clear consistent strategy. but certainly we have not heard andwhat those plans are when they will receive this money from the imf. lisa: do you think people in argentina would be ok with

cutbacks in public services in order to stave off the declines and pump more capital into the currency? patrick: the short answer is no because the government has been taking subsidies away from argentines to reach the fiscal deficit. that means utility prices, electricity, gas, light, all those things have gone up by hundreds of percent in the past year due to inflation, and the subsidies being removed. so argentines are already fed up with the price increases, and they have no interest in more austerity. caroline: this crisis unfortunately continues. patrick, we thank you for joining us from buenos aires. next.e market close is up let's have a look at the majors because that did hit the market. we were trading slightly below. now bouncing up about lows. the school being the $200 billion worth of chinese goods

that can be hit with tariffs next, that announcement income as soon as next week. nasdaq also turns lower. more on that. this is bloomberg. ♪

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two weeks. i'm lisa abramowicz and for scarlet fu. -- in for scarlet fu. joe: welcome to the closing bell coverage from 4 p.m. to 5 p.m. eastern everyday. caroline: take a look at the chart for the s&p 500 and the majors. we are currently seeing some across-the-board. the reasoning, we were down anyway and we sawtek as the outperform or, then we saw the s&p 500 leave what had been modern losses -- moderate losses after our breaking news hit after 2:00. looking at more tariffs coming its direction as soon as next week. this could come on an extra $200 billion worth. lisa: let's take a look at specific movers.

signet jewelers sword and had its best day since 1996 -- soared and had his best day since 1996. on the flipside, electronic arts had its worst day after delaying the release of its next title field videogame. showing how hard it it's -- hard it is to keep up with fortnight -- fortnite. also, dollar tree showing how there is a tale of two sides of the retail sector. campbell soup is under pressure from activist. one investor wanted it to be put up for sale. they are disappointed it did not go far enough. joe: let's take a look at the government bond market starting in the u.s.. risk off forof a u.s. treasury. 10 year yield is down 2.86%. there was selling across government bonds as you see the brazil tenure up to 6.16%.

argentina, if we go into the terminal, this is a look at ellie -- at the yield. five-year is up to 2.86. it started the day right around 10%. lots of anxiety in emerging markets, ridiculously m -- particularly m -- leadm. caroline: even on the day of dollar strength, the movement into the haven as the japanese yen and the dollar is down against it. been allow, it was a day of dollar strength and it was up 5/10 of 1% versus the canadian dollar. nafta talks continue and, looking at the euro, it is down by 3/10 of a percent. lastly, look at how much the dollar is up against the argentinian peso. 13%. joe: and it was around 20%

earlier. caroline: phenomenal news. that's as we see another record high for the central bank interest rates. joe: on commodities, not a whole lot of action today except that west texas oil is back near $70. golda slipping a little bit, so even with a little bit of fear in the year, not much for gold and silver down 1.4%. caroline: "what'd you miss?" backd trump is said to be with $200 billion of china terrace as early as next week -- tariffs as early as next week. how much of this is bacon and how much were you surprised by the market reaction -- baked in and how much were you surprised by the market reaction? after a pretty nice rebound

in u.s. markets, we are off less than half a percent. in a day in which you see a really incredible move in argentina for example, the amount of movement we have seen in other markets, the correlation is a little lower than what we have seen anymore -- indian turmoil. most folks and we will go ahead with the 200 billion. it's might be disappointing for some, but not shocking. lisa: everybody is at the beach, this is the slowest time of the year. joe: we are not. lisa: my point is, people are not coming in and changing up their allocations in any way. steven: that tends to exacerbate movement in market. it tends to be the case that you end up seeing worse spikes in correlation. you can take a look at it from a different perspective, but this back -- the fact the spillovers environment,volume

and the fact that it has not been more dramatic, may be a surprise for august. joe: the tariff news come argentina news, and we haven't talked about the turkish lira much even though it is getting clobbered this week. not sure where does right now. is this the same old story that a. it hasn't affected u.s. fundamentals so markets don't care, and b., that is the story and is there a point where it will? steven: american companies that are operating abroad, in the case of turkey, it will be largely a european story. would haveese issues to be really large to derail the american economy very far out, but it will have a big effect on multinational companies if it continues to worsen. we've also seen some trade deals and good news. the u.s. is focusing on china and away from other issues. the outlookaterial,

that we have these particular problems, but the main thing we should think about is these reasonable problems stay regional -- regional problems stay regional. what we saw over the month of august, where every e.m. traded at the kind of correlation as if we are having a moderate financial crisis. caroline: where are the opportunities? lisa and i were speaking to a colleague of yours earlier and she was talking about the volatility is why you might want to get in in places like brazil. where are you seeing potential opportunities now in the emerging markets or is it, take a step back, keep your powder dry until we get a sense of what's going on? steven: she's exactly right. u.s. markets, since the beginning of the year, had earnings growth. we are to see many markets

across the world which will grow earnings solidly while all of this is happening. it will matter there to. when you see credit and ian gets beaten up in u.s. credit strong, you have to question whether this aggression across markets -- as strong as it would be is as strong as it would be. it does note saying affect the world that much, regional issues stay in the region, how do you bring china into this than? they will probably be in a world of hurt if these tariffs increase. we have already seen signs of a slowdown affecting the entire southeast asian region and a bunch of others. steven: there's a particular catalyst in china now. in 2009, when china needed to boost its domestic economy to offset external risk, they boosted infrastructure spending. it looks very much now, by the fourth quarter of this year, china will boost infrastructure spending something like $100

billion. that has been the weakest component in china's economy. it is government controlled activity. chinese economy has been held it -- held down by credit reforms. if you don't want those, you might have other issues, but that does the lever they are pulling and likely to offset external weakness with that. no: you mentioned brazil, question the big story is the divergence of returns on u.s. versus everywhere else. where specifically are the biggest opportunities on some sort of convergence or cap -- catch up or places overlooked? steven: when we think about this, we have to make sure that or a court folio, investors need to be classified across asset classes that are actively priced in low risk portfolios.

portfolios,onal they take risk in e.m. and we have a lot more conviction in china's long run than we do and say let's -- then we do in let's say turkey. the allocations are little more specific than they would have been even a year ago. but that whole portfolio together and there may be overlays where you want to take risk. brazil looks like mexico did before the election. candidatethe leftist one and the markets that were covered. when you take a look at the currency, as we get it was in impeached the president, oil fell through $30, and here it is at the same level. lisa: steven wieting citigroup private banking chief investment strategist, thank you for being with us. lisa: breaking news. lululemon -- caroline: breaking news, lululemon is reporting numbers and their beating analyst estimates -- and they are

beating analyst estimates. you looking at the full-year outlook and earnings per share were 3.45 to 3.53. we're seeing a third-quarter net revenue of 720 million to 730 million. well above estimates. we are up five percentage point in terms of after hours trading. coming up, warren buffett sits down with bloomberg and he gives his insight on the markets, the economy, and what increases political all right nation and what that will mean.

mark: i mark crumpton with first word news.

president trump is ready to move ahead with china terrace. bloomberg learned president wants to impose tariffs on 200 billion more in chinese imports as soon as next week. on u.s. has already imposed 50 billion in chinese goats -- goods and beijing has retaliated. saying his hands were tied by the law, a federal judge in boston ruled the u.s. government can and a temporary housing voucher program for puerto rican hurricane evacuees. they have been living in hotels on the mainland since they fled after hurricane maria last september. one judge expressed remorse at his decision but said he cannot order the government to do something that should be done. theresa may became the first a country andt

years. she met with the president on the last stop of her three nation african tour which also included south africa and nigeria. margaret thatcher was the last leader too busy kenya -- visit kenya. the trump administration is backing asian-american students suing harvard over the affirmative-action policies. the justice department filed a so-called statement of interest cap toing that harvard the number of qualified asian-americans so it can of lessthe amount qualified people of other ages -- races. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. caroline: "what'd you miss?" berkshire hathaway ceo says he will keep buying stocks despite with the market suddenly moves.

buffett sat down with david westin. stocks, and i'm buying because i believe they will be worth more money in 10 years or 10 years -- 10 years or 20 years. i don't know if they will go up or down in the next few days, but i know they are good investments. the alternative for most people is fixed income. you get 3.02% for 30 years. which are rather invest in a company earning 15 or 20% on their invested capital and compounded words rather have a 3% bond which can never get more than 3% bond while you on it. >> some stocks are bargains, good bargains from your point of view. when the markets are this high, that means markets have gone up quite a bit. don't we have to have more fear in the marketplace before you

deploy that cash? that makeeates prices me want to shove out a lot of money as fast as i can. we have been shoveling of money and it is not as attractive as buying into doesn't eight in -- in 2008 in 2009. -- and 2009. you can't sit around to wait for it. you will never catch the bottom and everyone will be terrified of the time. we keep buying as long as we find a something that is attractive to us. attractive at a reasonable price. i love it at the really juicy price, but i keep buying. >> health care, you have been outspoken about it. of gdp andercentage taxes have gone from 4% to 2%. you are now involved in a joint

venture with jpmorgan. how are you going to bend that cost curve as a practical matter? >> i wish i knew. the answer is get the smartest people we can working on it and we have a terrific leader on that. basically give them free wayne -- free rape and not expect something to happen next year or the are after. this is a 3.3 trillion or something like that industry. every dollar has a constituency and it has all kinds of factors. you cannot just chip a little here and there. we're not in a hurry, we would like to be in a hurry, but we are not going to do something faster than it can be done. >> what is your partner doing? >> he's thinking and hiring people. he's been thinking all his life, but he is now focused on looking at the system and saying, is there a system that can check that iswing tapeworm

growing every year and way higher than any other country in the gdp. can we do that and deliver a better project -- product? >> when you try to bend the cost curve, you two options, it is been less than what you're getting already, or you get less. those are the options. how much of this will be expecting monopoly out of the system where people are making too much money and how much will be saying to people you cannot have the drug of health care service you expect? a we will not do it unless very substantial majority of the people feel they will be better off under what we are proposing. you can spend smarter the -- though. threat the industry, we do spend a smarter. we are so much more efficient than 50 years ago at making cars. it's not impossible to think smarter about something, but you do get legit it is built in --

legitities built-in. it's like a rubik's cube. you have to arrange a lot of things before you get there. it is a big challenge. >> but it must create dislocation in success. >> there will be dislocation. farmingbeen disrupting ever since we have 80% of the people on farms. we decide tractors were better than horses and it wouldn't be bad to have irrigation and now 2% of the people are more productive than 80% were a couple of hundred years ago. >> you've often said being born in the united states is the best place and time in history, referencing the 20's, is the best chance to be born. we see more extreme chance of being taken, can you see a world in which we start to a road that advantage of being born in the united states? >> i don't think so.

going back to the late 60's and early 70's, we were torn apart over vietnam and we have a president resign. going to go through all kinds of things. we went through great depression, and this country moves forward. the luckiest person in the history of civilization is a baby being born in the united states today. where much depends on they are born and to whom they are born and what circumstances? the bottom percentile and toppers and tall are going apart -- top percentile are growing apart. the system that delivers output is giving more and more to the people at the top. if you go back, you could be the best farmer in the world, there

was some differential in our ability if you are the best farmhand. society gets more specialized with more and more rewards flowing to the people at the top unless we do something about it. that was warren buffett on his birthday speaking with david westin earlier today. coming up, a two dozen eight financial crisis yields, scheduled these -- yields countless casualties one person turn that into a benefit. this is bloomberg. ♪

caroline: donald trump is speaking in an exclusive interview with lubec news curley talking tech straight and turnover.

he is talking about linking capital gains taxes to inflation. this is in an interview with our very own bloomberg reporters in the oval office. he is threatening to withdraw from the wto if it does not " shape up." he's also talking about jeff and he does not regret appointing jay powell. let's get straight to our chief correspondent. >> interesting to note that donald trump is telling them in an oval office interview that jeff sessions has a job until at least the november election. that is a massive development and it comes following the president's criticism of the attorney general or his critique of how exactly he is thought of the attorney general. notlso says he's -- he does regret appointing jay powell.

as theso worth noting trade headlines passed earlier with regards to the world trade organization, it comes at a time whether presidents will be looking for some type of leverage against european allies on trade as well as with the chinese. a lot to sort through here. joe: it is funny because my first inclination is to look at the market moving -- potentially market implicating headlines whether it relates to the chairman,ins, the fed but from the d.c. political perspective, it sounds like jeff sessions may not have a job after november is kind of the real talker as you might say. kevin: and that he is also safe until november. joe: fair enough. kevin: it kind of put the timeline on it. judiciary head said

there might be some type of room on the schedule after the november midterm and, with regards to lindsey graham, there could be that there. regards to the capital gain, it is interesting as though the of. -- president appears to have the $200 billion worth of tariffs implemented next week. that will be huge driver to see the market reaction. it will be interesting to see what the president's decision is as regards to nafta as well. lisa: just to talk a little more about the capital gains and linking it to inflation, the argument is basically that it is unfair people pay as much as they do in taxes on their profits based on the inflation-adjusted profit that they actually are reaping. would allowds, this people to keep more of the profits if there had been inflation during. the time of their investment is --s correct -- investment

during the time of their investment. is this correct? kevin: yes. and this comes -- it will be interesting how they try to contrast that. it something the president has previously toured with for quite some time. this, i head of the midterm elections, it is quite interesting and notable. lisa: i have to wonder what that means for the deficit. that would mean there would be a smaller pool of taxes going to pay off all of the programs he wants to implement. how does that factor in? that: that's a question conservatives have raised on capitol hill, specifically with where have the deficits flied. the president has argued in the past that have -- that economic growth in gdp growth will have to offset some of the spending

gap. democrats disagree with that. it has been interesting to see the reversal of argument in terms of that's going on in washington and folks concerned about the deficit. from an administration standpoint, economic growth and gdp growth would help offset some of the deficit funding. from the democrats perspective, and conservative, they have concerns. joe: do we know that he wants to see the w -- do we know what it means to see the wto shape up? kevin: a lot of sources i spoke with a couple of weeks ago, with regards to negotiations on trade with europe, had raised concerns the wto would be the forum that the u.s. would look to negotiate with. you saw how the european response had reluctance to go through the wto really shaped up . the president said organizations like the wto are unfair to the u.s. and give an unfair leverage point to other folks in their

organization. by weakening that, it seems like a negotiation tactic. caroline: it would severely undermined the multinational trading coalition that the u.s. helped build. kevin: yes. broader trend in terms of how specifically this administration has sought to negotiate with these international agreements in the past relationship the president has had with public forums. it also looks at issues on trade whether it is nafta or other multilateral trade agreements, the president said he feels those are unfair. from thatf that, standpoint, how the president renegotiate the world trade organization, it will be interesting to see specifically at a time in which relations might make the case for the other organizations from u.n. --

organizations. perspective,ley's they have disrespected the u.s.. you very much. we will have more on the interview with president trump, coming up. we will be talking about all the points he mentioned. let's get to first word news with mark crumpton. mark: canada is still optimistic on progress with the u.s. in the nafta talks. one foreign spoke to reporters today in washington. is an nafta negotiation extremely important negotiation for canada, and we are focusing on getting a good deal for canada. a win, win, win outcome for the long-term. we have our eyes resolutely on that prize. mark: president trump said the united states and canada are probably on track to agree on how to revise that trade pact by tomorrow. the president is signaling he

knows who will succeed don mcgann. mr. trump announced a successor but said "he was very excited about the person who would be taking his place." he also said the rush investigation was not a factor in his departure. he believed government this fall after the expected senate confirmation of brett kavanaugh. european union defense ministers meeting today in vienna pledged support for operations of vienna -- operations sophia. italy refused to take and migrants rescued during a mission. >> this is only one part of a is howgger issue which the european union shares responsibility in managing asylum-seekers. rescuede added people by operations represent less

than 10% of all the people say that see currently. an effort passenger plane carrying the casket of john mccain is en route to washington after memorial services in phoenix. that she had made the best -- biden and larry fitzgerald were among those who told personal stories. there will be a public viewing at the u.s. capitol and a service saturday at washington national cathedral. senator mccain will be buried sunday at the naval academy in annapolis, maryland. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. get a recap of

today's market action. we saw a sharp turn lower after headlines came out that president trump was moving forward with roughly $200 billion worth of tariffs on chinese goods which go to -- which could go into effect as soon as next week. the dow jones is seeing the significant run to the pain, but the nasdaq is turning lower after the tech names had been leading the charge earlier. caroline: trump has been talking with bloomberg news and our very own editor-in-chief in an exclusive interview and a tax, trade, his own team. let's talk tax first. trump is thinking about indexing capital gains to inflation. be a tax-cut for investors on the real estate. we are also talking trade and a shot across about for the wto saying if they do not shape up,

trump says he will pull u.s. out. very much when you had to be keeping an eye on during these trade tensions with china and the ongoing conversation with china and mexico. he's also talking about his team. jeff sessions a safe until november. the fed chair powell says he does not regret hiring him. we have heard some concerns about the interest rate hikes coming from the fed. notably, he seems ok without. joe: he says i put a man in there i like and respect, and in private, he is not crazy about some of the moves, but he has not badgered him or insulted him the way he has other people in his orbit. even if he is not that big of a fan of the rate hikes, it is obvious from public statements that he's not treating him like that. lisa: this is also a vote and by to the president. people were concerned that he

would intertwine and policy positions and we could be less concerned on that. caroline: we can now speak to the man in the oval office. he joins us now from washington with more on his interview. john, how was trump during your interview? competent,ombative, he radiates a kind of confidence which not everyone will agree but he has a sense that he is winning all of the various battles across everything. he still has not stopped thinking of new big ideas. he's looking at things like the capital gains tax on index station -- indexation. he was saying europe was nearly as bad as china and has rejected the offer on auto parts or cars. lisa: stop there for second because we had not seen that and there was a bump in the european

auto stocks earlier today on the possibility of terrorists being removed. that is off the table you are saying? >> he said that was not nearly enough and he wanted much more from europe than that. that was not the starting chip. i've the same impression you did that this is quite a big deal for the europeans to offer, but his offer -- his response was this was not enough. joe: judging from the reaction on twitter, the big thing people are talking about is jeff sessions and the fact that he is safe until november, but you said in the interview he did not comment past that. what was he like when he would not comment. what was his vibe? john: i asked how many days, and he ignore the question. i don't think it is just trump, what is the general noise that session is ok through their. trump then went on a lot about the idea you wanted sessions to

be doing other things. he returned to the idea that it is impossible to impeach a successful president. caroline: what about in terms -- let's talk about his reaction on from chinabecause, today, we saw the stock market fall. is he aware of his interaction with the stock market and he feels he is omni potent in that way? himself asnk he sees part of the -- he looks at the stock market of one indicator he is doing. he is proud of the economy and i think he is a little mystified be beaten in the midterms given how well the economy is. generally, we asked him about the fact that he keeps on bashing the main companies find that huge a surge in the market. joe and i talked about this for

years, google, facebook, amazon. these are the companies driving up the stock market. these are the ones which foreigners tend to be most envious of if they look at america, yet they are once he seems to criticize most. lisa: i want to go back to the capital gains and taxes because a lot of conservative issues -- conservatives have issues about the increasing deficits in the u.s.. can you talk about how much support he has for lowering taxes on that and some of these equity investments? he asked is what we thought about the capital gains. we pointed out many other countries do have indexation on capital gain and there is usually a reasonable thing to do -- it is usually a reasonable thing to do. it's a tax-cut that might be more sensible to other tax-cut, but it would be adding to the deficit. joe: and whether it's good politics to lop on a new tax-cut

for rich investors. another line with regard to monetary policy, he said i'm not to the currency should be concerned by a politician. it sounds sensible. when i read the comments about the fed, maybe he's not a fan of the rate hikes, but he seems respectful of the content -- concept of fed independence. john: i think he has gotten more respectful. you have a man who loves running everything, and it is rather irritating to him that he cannot control this. i think you have to give him credit. he seems to have walked back a little bit from that. he was making more noise is about the fed earlier, and he talked a bit about being a businessman. back then, he just liked low interest rates and chief currency, and you thought that was good and less he was buying golf courses. in another interview, he talks about wanting to be accommodated

, but if you push him on that and say what do you mean, he does not want to step over the line. to that extent, he looks at the fed -- it looks like the fed has begun to win that battle. caroline: he thinks he is safe as well. talk a little bit more about the fact that he feels you cannot impeach a sitting president. thinks it is he very hard to impeach a successful president, which is very much how he views himself. he said he would give himself and a star in terms of his personal remarks. , politically, it is difficult to do. hethe eve of the midterms, remains wary, but he thinks if it what's -- was the midterms purely about him, he would do well.

a little political clout there, even though it is not necessarily mean him hanging on to the house. lisa: fantastic news from the interview we did. thank you so much, john, editor in chief of bloomberg news. we will have more on this coming up. from new york, this is bloomberg. ♪ ♪

caroline: president trump has been speaking with bloomberg news in an exclusive interview and peter joins us with a highlight. for us it was talking trade, wto, tax in terms of inflation indexing the overall capital gains tax. for you, was it all about the fed. peter: what i thought he said about the fed was heartening to

jay powell, but to me, the indexing of capital gains issue is fascinating because, on the face of it, it seems reasonable. why should people pay tax on a phantom gain just to be inflation increased and the value and asset? when we take a closer look, it turns out maybe to be not such a good idea. two thirds of the benefits will go to the top 1/10 of 1% taxpayers. only 1% of the entire game is due the bottom 80% of taxpayers. caroline: in my right-thinking quite a few of the policies have helped the wealthy even though they are spoken to help the masses. peter: oh yeah. furthermore, it is not just the skew onto gets it, but in a very the government already adjusts for inflation by having a preferential lower rate on capital gains dan waiting come. to change theed

rate of inflation, but goes in that direction. it would amount to a windfall that would not change people's behavior. they already made those investments, they are just getting much lower taxes on something they already bought. joe: what about corporate profits boosting by inflation and theory? our corporate -- in theory? you're getting more upside of the profitability of these companies but inflation drifts higher overtime. peter: the stated inflation grows higher. nominal profits are higher, nominal gains in the market are higher and you're paying tax on it. joe: stocks are viewed as a decent inflation hedge overtime so you are already kind of being compensated. peter: right, and they take some of it back through the tax. lisa: who is the constituency

pushing for this and how much would it reduce the taxes collected by the united states? peter: it's not that big. the constituent is pretty obvious. of taxpayers. it's a lot of friends of donald trump. also, the question of whether trump to do it unilaterally, there has been debate about that. they looked at a before and said no, that would have to be done by congress. caroline: u.s. talked about the tax selloff and i want to look -- tax elements, and i want to look at the trade elements. our editor-in-chief said that -- was talkingng about the wto, but also on the china tariffs.

peter: not good enough? lisa: he rejected it. peter: that fact that he would equate the problems the u.s. has would china than with europe, that is remarkable. europe has been a solid trading partner. china, there are legitimate problems. by equating them with each other, it makes it harder to have a united front and to get china to make changes. joe: is the wto in need of changes? peter: yeah. clearly. joe: this trump have a point? what is the most salient aspect of his point? peter: the resolution mexican -- the resolution point is slow. even when the u.s. is right it has trouble getting justice. there are ways to improve that that should be done, but have not been done. there was progress toward it,

and it is harder to make progress on the issues now and the wto and all others hunkering down as if hurricane hit them. lisa: we are looking at live images of president trump heading to indiana for a rally on make america great again. elections, i'm wondering how these policies will play out with hard-line approaches with the european union, the proposed tariffs on china. do you have a sense of how that through areas that voted for him? peter: i don't think the capital gains indexation is something he is doing to get votes. he might be doing it to get campaign contributions, but that could benefit so few of his voters that it is not a populist position. going after europe, entree, could mean a rally around the flag kind of position.

when a president -- when all else fails, resort to patriotism. it could be that kind of a play. caroline: we thank you for your insight. it was a phenomenal interview. and that was peter coy giving his analysis. from new york, this is bloomberg. ♪

caroline: donald trump has been spoken to bloomberg in an exclusive interview. greg joins us live on set. let's go out to you alex -- you, alex, first. there was so much to pick apart on trade, tax, and europe being

almost as bad as china. lashing out continued over social media giants of the u.s.. full is your key takeaway? line for our readers will be he is thinking about issuing a capital gains tax by regulation, has been under debate for a number of years. other notable things he said was that he threatened to withdraw from the wto unless it shapes up. i don't have more details yet, but that was quite a threat. he said jeff sessions, the attorney general, is safe in the job until after the midterm elections and support -- and showed support for jay powell. in our interview, he said he likes and respects powell and does not respect -- regret putting human office. he does not think politicians should have a say over monetary policy. lisa: i'm curious about jeff sessions.

he will remain in his seat as attorney general until november 9th, and he didn't answer questions about the days following that. basically an implication that he will push them out after that. amongs the fallout conservative circles where sessions is in some way the hero? job: jeff has than a good in enacting the president's policies of -- in the department of justice. jeff sessions has carried those policies out, but he got on the president bad side when he recused himself from the russian investigation and has never been able to get out of the doghouse. a lot of conservatives look past that, and look at what he is done on immigration and other issues in say he has done a good job as attorney general. i think, to fire him before the election, might discourage some republican voters. i don't think they will be

encouraged by the idea that he will get the boot afterwards. joe: what is your interpretation, graham, of his job security? >> the president signaled he is his tweetsling out as to where things are going. it's clear jeff sessions will almost certainly be pushed out onleave of his own volition november 8 or beyond. the big question is who will follow. that first ofme all republican senators are open that -- open to that. lindsey graham said it would be folly for him to push out session six months ago but now, it is two years into the new administration and he can get a new ag. i don't think it is a guarantee he will get the guy he wants. joe: does he raise the risk of not being able to get any ag? , it is ademocrats challenge for them to take the senate, but that could be a complication.

greg: if he tries to get someone like rudy giuliani, it will not fly even if republicans hold the senate. lisa: come back in here, alex. how much do we interpret the fate of sessions as trump trying to pave the way to fire bob mueller? i think that's the question a lot of people have in their minds. he is the special prosecutor going after you -- going after president trump. are these preliminary steps? don't think any attorney general can be confirmed in the senate unless he swears in the bible not to mess with bob mueller. i don't think that firing jeff sessions is a preliminary step to firing bob mueller. i think it is personal between donald trump and jeff sessions. the animosity between them is too big. sessions cannot last in the job. i'm certain donald trump would like to get a leash around the special counsel's investigation,

but i don't know even if a new attorney general will be able to do that. there's one that's not considered a partisan guy and make -- might be able to be confirmed. i don't think he will try to take control of the russian investigation. caroline: in all of this our conversations we have had a week ago on whether we can see president trump and peach in some way. oureems that he spoke to chief editor and said there is no way he can be impeached as he is too successful. alex: it's true he could be impeached, what it is more than success if the senate -- you need 67 votes in the u.s. senate meaning every democrat and 15 or 17 republicans. i can't see that happening short him shooting someone on fifth avenue. the capitalback to

gains taxes, what constituency within the republican party is behind president trump with this? whose favor is he managing to curry with this or is it something he has been wanting to do for a while? alex: wealthy donors and himself and his family are the people who would benefit from this. there are middle-class americans who have investments in stock markets and elsewhere who would benefit from a capital gains tax change like the one he has proposed, but the benefits will skew to the wealthy dramatically. democrats will make that point in the elections. joe: r.o.e. quickly, greg, you mentioned del regime -- delregime as someone who could the ag. people are saying that maybe

google and facebook are antitrust concerns. should they be concerned? ream is very respected. he is a guy who has enough credibility among democrats to get over the hump. caroline: what a busy newsday. thank you to alex and greg. phenomenal exclusive interview done by our colleagues in the oval office. the exclusivefor interview with donald trump and there will be much more market action and we will cover it. this is bloomberg. ♪ this isn't just any moving day.

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mark: today the president of the united states conducted a wide-ranging oval office interview with bloomberg news. discussed, aics capital gains tax break, the wto, attacking social media giants google, amazon, and facebook, the president's feelings about fed chair jerome powell, and the job security of his embattled attorney general, jeff sessions. joining me from washington, john mickelthwait, who helped conduct the interview with president trump. here in new york, peter coy. let me start with you. i have to ask, the