david stockman, thank you, former budget director under president reagan. will talk to former u.s.sador to south korea about what the u.s. will try to achieve in a face-to-face meeting with the north korean leader. this is bloomberg. ♪ mom, dad, can we talk? sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. david: this is "bloomberg markets: balance of power". shery: let's get a quick check of the majo

know the best way to do that >> joining us now to discuss more about this is his former boss, david stockmanthe former on the director under president reagan with kudlow in the white house as well. david, thank you for joining us. i don't know, what is he like in the workplace? what do you say based on your experience in the past and what to expect from larry in the white house? >> caller: well, i say congratulations to larry, but unfortunately, that's about as far as it goes he's walking into what i think is an impossible mission it's head, trump wins, tails, larry loses. what i mean by that is donald trump is an incorrigible lifelong rabid protectionist, on the record back not 1970s, it's primitive, he's never change his mind, and he's not going to listen to anyone on these issues including larry. >> but you certainly don't think he wouldn't -- anybody going to say, you know, i have an opportunity to work in the white house, but i'm not going to do it because we disagree >> caller: no. i'm glad he's taking it. i say more power to him, but i'm also saying if there's an expectation that this

david stockman he work nd the omb under rageag. >> very good to be with you. >> what's your reaction to this report that larry kudlow could be the man to replace cohn >> i'm not surprised larry is a great guy i've known him since 1980 when i came to wall street. found him at bear stearns. convinced him on spot to be my economist omb and he went on from there to become a major voice and influence in the reagan policy formation in the early '80s he obviously has tremendous experience on both ends of the quarter. washington policy and wall street that's all the good. more importantly, he is a great free market and consistent free market thinker and free trader and with this absolute insanity that trump has launched with the steel tariffs and potential trade war down the road, that's all to the good. unfortunately, i have to say, and as much as i love him and have known for him four decades, larry's voice is the wrong voice that donald trump ought to be b hearing as we go forwar. larry is an incourageable wall street cheerleader and is incapable of recognizing and ma. >> honestly, look,

oklahoma senator is here along with former reagan budget or david stockman who is upset about the move on tariffs and will get a story. the biggest commissioner is with us as well. you don't want to miss the moments of that. stay right there at the top story. chief economic adviser gary cohn has resigned. the move comes from president trump's hard stance on trade, aluminum and steel tariffs, some paint gary cohn was supposed to. he did a superb job and driving and historic tax cuts and reforms in unleashing the american economy went again. it has been an honor to serve my country and enact progrowth economic policies to benefit the american people and now we see the market down and becomes what impact does this trade have on this progress. the administration has had in terms of economic growth. 3.5% growth this year. how does that change? >> this is obviously a small window we are looking now. we've seen the markets and puts greater pressure as it tries to remove this unprecedented stimulus we've experienced over the last 10 years. one thing to watch out for is retaliation. retaliation

david stockman, thanks so much for joining us. >> happy to be with you. >>> a warning for the white houselly to his boss, don't talk to robert mueller's witnesses about their testimony. this as reports surface that the president is doing just that. more information coming up. today, innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, only tylenol® rapid release gels have laser drilled holes. they release medicine fast, for fast pain relief. tylenol® >>> in syria, force rs east of the euphrates river, buildup where pro regime troops initiated an attack on searialian democratic forces last month and turned the u.s. air strikes, killing pro regime fight

david: all right, david stockman, always a pleasure even though we disagree profoundly. we appreciate it. melissa: all right. bring back in heather and paul. paul you were just traveling outside of the country, listening to people who are reacting it threat of tariffs as you know we think it is being used as negotiating tool. we know larry kudlow, we know very well wouldn't stand by to let tariffs put in place. besides that, what is reaction outside of our borders? >> last week i spent a few days in mexico city meeting our clients who are largely investors and corporations. about trade, the general consensus they viewed it as negotiating tactic relative to nafta. they did not seem overly concerned but that being said in july, in mexico, our elections, so there are general market volatility as a result of that, and then the uncertainty regarding nafta and trade, potential trade tariffs on steel are also causing, contributing to some of the volatility. i also heard from some of our clients down there that they were regretting that they weren't as diversified in trade with

and he and david stockman worked together and larry with his articulate nature was sent by reagan timeime again back to wall street to kind of negotiate and explain and so he's got a lot of those talents. that having been said, he's an extraordinarily talented man this rally is equally about the fact that it's not navarro and so the sigh of relief is there. as you aptly noted, the rebound was led by the trade sensitive issues and they came back and so i think they think that this would be a great idea. but it's also a sigh of relief that it's not navarro or the navarro wing >> jim cramer, you got more on this >> i've been telling larry this is the job he's training for his whole life i agree with that i think he has always had a position that is certainly of the wing which says that we have to be free traders but tough, navarro wing is a wing where it has been something like what dave damico who is very opposed to larry which is, you no he what look, it's a trade war we haven't seen tried to fight it last was starting to get tough. a tariff on steel, tariff on -- how far do they go if

adam shapiro, at white house joining us right now to weigh in former a regular budget director david stockmanastructure plan is focus today from the president, now the white house -- talking about 200 billion dollars federal money the rest private money your thoughts on infrastructure spunneding. >> -- funding. >> forget it we don't have 200 billion dollars to spend, the government is is actually flat-out broke, we have gone through a fiscal about rirnl or gee into 10th year of so-called recovery going to have a 12.2 trillion deficit cut taxes 300 billion omnibus spending bill raised it by 200 billion bad enough what they he inherited from obama, and now we are in the soup like never before they need to focus on getting the fiscal situation under control. infrastructure will take care of itself, 90% infrastructure is state and local, 90% infrastructure can be fund about user fees, we don't need to be you know hitting the federal budget which is bleeding red i think -- red ink fed going to stop of printing money selling bonds this is the worst time for him to be thinking about this now he is -

i'm old enough to remember the rather blatant criticism coming from larry speaks and david stockman and jack kemp and the president himself of the cbo at that time. so when i hear about the concern over the discourse today, i too have some concerns. but i'm also equally as distr s distressed about people hiding behind calling others partisan when they're being immensely partisan. i mean, i presume, dr. rivlin, you're equally distressed as you are coming from this president and the white house, you're equally distressed by some of these resistance groups and the activities they're undertaking today, right? >> well, i consider myself, actually, i am a democrat, but i am a strong advocate of nonpartisan analysis and bipartisan action. and i just hope we can get over this crisis of partisanship and have the two parties working together for the good of the country. >> and i think we are on this panel on this committee. but i just don't want to let this one-sided narrative go forward too far with the entire amount of blame headed towards one side of the aisle. we've got irresponsible rhetoric