i'm matt miller in bari, italy.th the bloomberg business flash with juliette saly. u.s. has reached an agreement that china should provide greater access to american natural gas exporters as part of a broader effort to begin reshaping the trade relationship between the worlds two largest economies. the agreement covers 10 areas where trade negotiated from the u.s. and china have reached consensus, including agricultural trade and markets for initial services. you will be speaking with wilbur ross about that deal at 1:30 p.m. u.k. time. in the u.s., president trump has fired -- described james comey as a grandstander and says he would have fired him no matter the recommendation. his remarks departed from explanations given by white house officials earlier in the week. he told nbc the fbi has been in turmoil for months and that comey was not the right person to help it recovery. was, i was going to fire comey. my decision. i was going to fire comey. there is no good time to do it, by the way. juliette: global news 24

tax reform and donald trump's economic plans as they meet in bari. willem is live from bari. the italian finance minister has caused those plans ambitious. >> he did indeed. we caught up with him a few minutes ago. there's been voices from inside the imf that talked about the concerns that some of the economic plans especially tax reform in the u.s. might stoke inflation, some of the ambitious plans as he put it would be problematic in that sphere. let's have a listen to what he said to us a few moments ago. >> u.s. tax policy, i understand there's a tax reform program in the united states. we're watching closely on what is good for the united states what would be learned by other countries about tax reform. >> so they'll be watching closely he says there. we're still watching closely to see whether the u.s. treasury secretary, steve mnuchin will arrive here. his colleagues are waiting inside for him. his role is to explain what it is the trump administration plans to do. it's an important role according to his counterpart from germany, wolfgang schauble who also spoebl spoke

matt, please don't work too hard in the port city of bari, italy.e comingwill be up, and follow it all on tv glow on your bloomberg. bloomberg.o> on your ♪ vonnie: it's 1:00 p.m. in washington and one hammond hong kong. i'm vonnie quinn. andi'm kevin's really -- >> i'm kevin's really. cirilli. vonnie: a broader effort to reshape the trade relationship between the two largest in the world. later this hour, we will hear from former, -- the former commerce secretary. the president is escalating saying that their conversations might have been taped. kevin will be talking about the man at the center of it all, roger stone.

the g-7 meeting officially kicked off this evening with a formal dinner to welcome everyone to bari. the discussions here will help set the tone for the president's visit later on this month. for "nightly business report," i'm elon muy in italy. >>> ahead, why the airline industry might be bracing for new trav >>> wells fargo willcutting pro billion, on top of previously announced cost cuts of roughly the same amount. the company plans to use the savings to invest in technology to replace an aggressive sales culture. bank executives say the fallout from the fake account scandal of last year is accelerating these changes as the industry undergoes a shift. >>> ford faces questions about where that company is headed along with the slumping stock price. shares of the automaker are trading near a five-year low. even the chairman admits he's frustrated by the stock that has stalled. phil lebeau has our story. >> reporter: ford is the tale of two companies. its current business, selling trucks, suvs, and cars, just posted its second most profitable year ever. while earnings will be lower th

yla nsh yla nshn mui has more. >> the meeting is underway in an 11th century castle in bari, italy.teve mnuchin joined the conference just about an hour ago. as he walked inside, i asked how he planned to defend the administration's america first trade policies. >> we're excited about u.s. trade policies. i think you saw last night we made an announcement of 100-day economic plan with the chinese. >> he was speaking about an agreement between the u.s. and china that was announced today to increase market access in areas like agricultural products and financial services. now, trade is not officially on the agenda here in bari, but the issue is likely to come up during the one-on-one bilateral meetings between treasury sec d secretary steve mnuchin and other finance ministers. he is scheduled to meet today with japan's aso and germany's wolfgang schauble. i asked schauble what his message might be for the u.s. >> we need a strong united states to lead the global economy and global politics in a sustainable way. united states is still the most important economic power, and the best all

schaeuble speaks to kata brown, the more they are convinced -- bari, over the weekend in he said ther of forming loan story -- nonperforming loan story was tens of millions of euros. story is undoubted in europe. it is becoming much more of a firm story 31.7%. where does that put us? you will see a growth of around 1.7%. this is you can economic growth beginning to level off. here in the white, you have the eurozone, so you can see the eurozone setting to outpace the e.u.. momentum youind of have gone in terms of the overall growth story in europe during the oil story is front and center. brent is big, wti is big. you can see they are closing up .2%. this is the positioning of the markets. they had washed themselves out. the market had essentially given up on it's very long bullish position it created on the first cut that was agreed to. the market has got fresh ability to take itself higher. this is the shanghai composite closing on the data. the movement seems to be on the hang seng. you have got a nice bit of momentum. it is the belt and road story that drives the market. i'm off

thank you, matt miller in bari, italy. let's check in on first word news.awyers say trump's he doesn't get any income from russia, plus they say you doesn't go any money to russian lenders. the lawyers say that comes from a review of the president's tax returns for the last 10 years, they did not release copies of those returns. attorney general jeff sessions is instituting a new policy that is certain to send more people to prison for longer terms. sessions has told federal prosecutors to pursue the most serious charges possible against most suspect, a reversal of obama era policy that aim to to ease overcrowding and federal prisons. preparing to cement ties with president trump by making unprecedented investment in the u.s. according to people familiar with the matter, the saudis will announce plans to invest as much as $40 billion in u.s. of, and that may happen next week to coincide with president trump's visit to the country. the pentagon is reassuring turkey of american support after agreeing to arm kurdish fighters that the turks consider terrorists.

again, what we know we as, from the meeting two weeks ago in bari, whether finance ministers met, theyt likely what we will see in the communique coming out of the sicily meeting is that it will just be reinforcing out of the sicily meeting is that it willjust be reinforcing trade in the economies. we discuss some of the economies. we discuss some of the differences they have. one thing they have in common is growth. we have that figure from the imf forecasting within the g7 group, i.9%, what do you think we are going to try to come up with to deal with anything? there are many other issues on the agenda, looking towards the manchester bomb, terrorism will be up on the agenda. but it's quite normal to see this diverges between established economies, compared to other ones and president trump on the campaign trail said he wants to see the american economy grow by 3— 4%. that is highly unlikely given it is such a well—established economy and emerging economies have the advantage of population growth. thank you very much indeed. interesting to get your perspective. let's stay with those c

certainly a bit of drizzle here in the port city of bari. the locals told me it's a north african wind that sometimes comes into this part of italy. but clearly some back and forths here between some of these finance ministers, in particular over trade and certainly over the trump administration. the europeans will be defending their part when it comes to keeping taxes in particular from some of the larger u.s. firms in europe. you may have heard the italians have won a big case against google that allowed them to claw back hundreds of millions of euros in back taxes. and there's that big $13 billion apple case being stuck and litigated in the courts. steve mnuchin, the treasury secretary for the u.s., keen to bring some of those huge technology firms revenues back to the u.s., the earnings so they can be taxed there. that's something that both sides will be disagreeing on slightly i imagine. >> thank you very much for that. >>> some breaking news, spain's high court says they're investigating an accusation of alleged iberdrola price manipul

adam shapiro is standing by in bari, italy with the very latest. very good to see you, adam.reporter: good to see you, david, good afternoon, good evening. the events wrapped for evening moments ago. it has been a busy day for the secretary of treasury because he met as you said with his italian counterpart. that issue of tax reform is something the italians put on the agenda but it is something that everyone in the f 7 is going to be discussing with secretary mnuchin as the united states considers tax reform that may bring about a border adjustment tax. we've had a treasury official tell fox business that border adjustment tax as it exists right now would not work in the united states but that the administration is willing to listen to members of congress as the u.s. writes tax reform. that is an issue important to our trading partners throughout the g7. the key topics of the g7 will be tax reform and of course the border adjustment tax and consequences. also cybersecurity, protecting the global financial system. this is key to secretary mnuchin who is going to be leading a

all of that weighs in together, so we need to reduce the bari opportunity.hink that that is one of the strong points of this administration, the trump administration. they've issued several executive orders to review and reduce the regulatory state. i know just thinking about apprenticeship programs for americans, those who have been very successful in germany where i am from, and switzerland, and i know that the administration is trying to figure out how can we encourage more of this in this country? and it also comes down to school choice. if you are stuck in a failing school we don't properly learn to read and write and you can't really focus on your studies because is not a safe environment, how will you lift yourself out of poverty? and that is something where the administration ♪ >>> how do we balance this conversation out, and not escalate into national debt? >> say that "the national debt, how do you not expand the national debt? >> well, a couple of things. one, it starts with the president. this president has probably captivated the world in a way

this is the first time in almost 1,000 years that the relic has left the city of bari.y are queueing for miracles. young and old have come to pay homage to russia's most cherished saint. for this is the rib of saint nicholas, the wonder worker, the saint who inspired the legend of santa claus. the rib is on loan from italy after a historic agreement between the pope and the patriarch and these russians believe it has the power to change their lives. my son is not well, tatiana says. brought in the from hospital today because we believe in miracles. what is astonishing about this is that for 70 years, the communists tried to annihilate religion in this country but judging annihilate religion in this country butjudging by these scenes and by the interest in saint nicholas's rib, they failed to destroy the fate of russians. extracting the red from saint nicholas's quipped in italy was a delicate operation. the fragments of bone had lain here for more than 900 years. the rib was placed in goldeneye can flow into moscow amid pomp and prayer and burning incense. orthodox prie

governors from the so-called group of seven industrial nations have finished a two-day meeting in bari, italy. while there, u.s. treasury secretary steve mnuchin told the g-7 that cutting the corporate tax rate is a top u.s. priority. the final communique said officials are "working to strengthen the contribution of trade to our economies." mnuchin said the u.s. is looking for "balanced" deals. >> we do not want to be protectionist, but we reserve our rights to be protectionist to the extent that we believe that trade is not free and fair. >> sreenivasan: president trump is scheduled to attend a g-7 summit in sicily, italy, in two weeks. the state department said today the u.s. would consider talks with north korea only if the north "ceases all its illegal activities and aggressive behavior in the region." the written statement came in response to a top north korean diplomat, who said her country would be willing to resume negotiations with the u.s. over its nuclear and missile programs. but she did not specify what the right conditions would be. she suggested the north might also be o

g7 finance ministers head to bari, italy today. trade is not on the agenda but a senior white house official says the topic may come up. also out of europe, the markets are weighing in on the bank of interest rate decision scheduled for release in a few hours time. let's bring in brooke masters. thank you for joining us. let's touch on the bank of england decision. we're not expecting any action today? >> absolutely not. everyone expects them to hold rates steady at 0.25%. the question is whether the minutes show there is now a second vote to raise. one of the hard-liners has been voting to raise for a while, now there's a sense there may be a second vote. >> what's been the read on the uk economy. everyone has been surprised by the strength out of brexit and into brexit. has that maintained itself? >> the hard data is looking depressing. the trade deficit spiked to a six-month high. also industrial production is disappointing at 0.3% growth. that is following a pattern where the hard data on consumer spending has been depressing.

miller, bari, italy.we will turn to japan with the nikkei is trading close to 22,000 for the first time since 2015. it there is no sign of it slowing down. japanese risk assets including equities and real estate are on track for a multiyear bull market. let's talk a little bit about the fundamentals here driving this return to 20000 and the nikkei. we are winding down to the end of earnings season in japan and the yen plays very strongly in that. how are they looking? >> very good. for two reasons. the first reason is that you see a rise in the visibility of upwards momentum on corporate earnings. you find, specifically, in this earnings season, 70% of companies surprised on the upside in terms of what they actually deliver. the momentum on earnings is starting to turn around very nicely. the second reason is, looking forward, you actually see that corporate japan is very conservative. japanese companies are leaving nothing to cnc they are budgeting very conservative. the date benchmark in japan. they are

bari only at a sleep number store.w it's our lowest price ever on our temperature balancing i8 bed. save $700. go to sleepnumber.com for a store near you. . >>> welcome to "inside politics." i'm john king. thanks for sharing your day with us. a busy hour ahead as president trump moves through a day of diplomacy in isreal. he's having dinner later this hour with benjamin netanyahu and the president is enjoying a very warm welcome despite several thorny issues. already in isreal, a bit of history. mr. trump the first sitting president to visit jerusalem's western wall, one of the holiest sights in judaism. earlier in a meeting with isreal's president, he said he hoped his president might give a boost to the long-derailed peace process. >> i also look forward to discussing the peace process with palestinian president abbas. young israeli and palestinian children deserve to grow up in safety and to followhe

i have family in bari. neil: what he think of what he was saying?are not in agreement on these issues the united states might overdo it. >> the same, that is part of the trump mantra to shake and sad. not necessarily go. this is the good part of donald trump. he leaves them guessing. why would you be in lockstep with europe over trade? >> what do you think of this french brother coming in, macron. >> he's an interesting choice. he married his high school sweetheart who was his teacher. neil: little trivia there. donald trump's wife is 24 years younger. >> that's the american way of doing things. >> i think it's interesting because one thing -- neil: he married his high school teacher, right? >> i just wonder if that's legal. neil: he's doing a lot of ronald reagan types of. >> well, he's definitely a social liberal, but he is a tax cutter. a lot of corporatists and he's essentially corporatist, you can see this in gary collins, the trump nec. they believe lower corporate taxes -- >> what would happen if the whole world raises the lowest tax rates. d

tom: i just figure out where bari, italy, is. it is just above the silver -- on the heel.uy: we are going to have fun today, aren't we? tom: it's on the heel of rupert sanderson boot. there are members of the keene family that do not care about mr. trump. they just want to talk to mr. sanderson. can't get to heathrow festina. -- fast enough. guy: exports benefiting from recovery and global demand. ahead of regional elections in the country's most populous state. meanwhile, the european economic and monetary affairs commissioner says that germany's europe.ader will be pro- >> i think the germans are lucky. because whoever is the next german chancellor will be a strong leader dedicated for europe. guy: as to what is happening are the german data, they pretty solid right now. more evidence of that today. nevertheless, these are the kinds of cues that draghi needs to turn policy neutral and point is to a change further down the road. andrew: absolutely. german data, but european data as a whole has been very strong. ecb have had to navigate the political events. junenk the nex

we want to head over to bari, italy. matt miller is on scene with a special guest.le laureate princeton professor angus deaton. thanks for your time. let me ask you about the trade issues, which everyone seems to say officially are not on the table. but they still seem to be on top of everyone's mind. angus: i think that is right. there is obviously a sharp difference between the cosmopolitan policy makers make up most of the g-7 and the american position on these issues. matt: you have done work on the economics of on a quality -- inequality. is global trade partially to blame for the inequality we are seeing? angus: partially. i do not think it is the only cause. people worry about the decline of american manufacturing, but american manufacturing is not declining. what is declining our jobs in american manufacturing. hass true globalization played a part in that, but so has optimization. matt: rise of the robots. is that more important than off shoring? angus: i do not think anyone has done a convincing analysis that allows you to parse these different dates. i do

it's more complete allergy relief in a gentle mist experienc you'll bary fe. unique mistpro technology, new flonase sensimist delivers a gentle mist to help block six key inflammatory substances that cause your symptoms. most allergy pills only block one. and six is greater than one. new flonase sensimist changes everything. >> lou: a view thoughts on the delusions of the speaker of the house. we thought for a fleeting few days, paul ryan might decide to align himself with the president, nation and his party or at the least gone to ground. but today's politicalo headline reminds us of the broad, deep divide between ryan and reality. here is the headline. ryan bucks white house setting up clash on taxes. no, it appears that ryan is pushing his border opposition tax against the president. good lord, the speaker argued against the president's agenda again and declared his plan is the smart way to go. frankly there is nothing smart about opposing the nation's leader and the party's leader and the president of the united states. the way and means committee kevin br