cohn -- trump himself, in his interview with "the wall street journal," put gary cohn in play for the fed chairman, okay that was trump mr. cohn did not say that. that was the president, who said that so i think that gives some credibility to the possibility, the likelihood -- i'm not saying it's a done deal, all right? but trump did that and i think from what i gather in my own visits to the west wing and so forth, trump has been very impressed with gary cohn's performance and his abilities to run a good staff and get briefing papers and so forth and so on. >> but in anthony scaramucci's rant, interview, whatever you want to call it, he also called out bannon so, to steve grasso's point here, larry, if you believe that scaramucci was the messenger on priebus, can we also discern that he is the messenger on bannon because he went after them sort of equally in that interview >> well, it's an interesting hypothesis, brian. it's an interesting hypothesis >> and what would you believe if it's true. does that mean they're tightening ranks in a positive way, or do you believe there's so muc

mcmaster, gary cohn group.o presidents as they walk through this museum complex and the anthems continue to be performed. ♪ [ speaking french ] [ speaking french ] >> the sword ceremony just in front of the two presidents. you just saw off to the background of both men, both first ladies. brigitte macron in white this morning and first lady melania trump in red. i want to bring hallie jackson back in, who is standing by. hallie, this seems to be obviously an official event, but the two presidents at least seem more friendly than normal. >> well, and i don't know that there is a baseline yet for normality given this is only the third time that they've met, but it certainly is warmer than what we saw that first time around, stephanie. i think you're right on the g-7 where there was sort of that very alpha male aggressive handshake between the two a you watched the ceremony unfold here. i think when you look at the relationship between these two men, it could be really key to the u.s.' relationship with the europe

they are not only ones struggling, gary cohn also having problem, former partner at goldman sachs, said cohn bragged he has blunted the president's nation. dedicated to making sure u.s. does not start any ridiculous trade wars or do something crazy on health care. gary cohn not the cleverrist to say things like that. and just who does he think he is? there seem to be enough people in this white house like gary cohn twgary who seem to not take the president seriously. republican leaders are unwilling or unrain el to deliver for president trump, i have never seen anything like this so many white house appointees who feel entitled to oppose the president of united states. for those there seems to be no accountability. that can't go on much longer, not without disastrous consequences for the president trump agenda. and i fear the country. our quote of the evening, on loyal tie, ses -- nothing is more noble, than loyalty. nothing seems to be any more in short supply in this white house than loyalty. we're coming right back. >> president trump slamming iran deal as one of worst ever. >> my on

gary cohn, you couldn't have a better adult. he can run goldman sachs, the economic piece of the white house. reince priebus knows the hardware in the plumbing of washington. steve bannon is the vicar of a philosophy, whether you agree with it or not. you can agree with it or not. megan: that's the last time you with your man and described as a buddhist monk. tom: he has a point of view. all these other things on the leaks come from management by confusion. command and control is the president. to give you an example, the president goes to i.m. pei. he says what you want me to do? i want to use your name and i will design the building. true story. he says i want you to build it. i don't really want you to build it. i need your bond and i will negotiate the drywall contract. he has the plumber command, the electrical. today you want to the white house you are walking into -- there is no james baker. there is no differentiation between him and what is happening in all the spheres. that is how he manages. the death by a thousand le

gary cohn will replace janet yellen. that is pure speculation. gary cohn is a democrat. and the -- he is writing a lot of the president's growth agenda. that's an interesting convince combination, isn't it, politically democrat, but you are supporting a republican president who wants to grow the economy. ainsley: why does the president like him so much. >> because he supports a growth agenda and investors like this. this speculation was announced a couple of hours ago. immediate little bump up in the stock market. steve: really? >> that indicates investors like the idea of gary cohn as one of the most important and powerful person in the world at the fed. ainsley: he was ceo of goldman. >> he was. if he became fed chair, one ever the most powerful people in the world bar none. very big deal. steve: look at that when he was candidate donald trump, what did he say about janet yellen and the fed. was he before or agains -- for . >> he was against her. janet yellen had financed president obama's weak economic policies. financed his ability to spend a great deal of government

national economic council director gary cohn is said to be the leading candidate to replace janet yellenfed chair next year according to politico. the report quotes one republican close to the process as saying the job is probably cohn's if he wants it. saudi arabia is said to have pumped more than 10 million barrels of oil a day in june, exceeding its production limit for the first time since brokering the deal to curb the global glut. the kingdom usually raises production in the summer to meet the demand of air-conditioning. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nejra cehic. this is bloomberg. mark: just getting some breaking jobs data out of the u.k. consumers continuing to see spending power eroded by feeble wage increases and rising cost of living, despite unemployment falling. regular earnings rising 2% in the three months through may through -- from a year earlier. slightly up from april. well behind the rate of inflation last month. inflation up 2.9% year on year. real pay fell by 0.5%. that figure could turn

gary cohn, you could not ask for a better adult to stand by.u can run goldman sachs, you can run the economic piece of the white house and play politics. reince priebus knows the hardware and the plumbing of washington. and steve bannon is the vicar of the philosophy, whether we agree on it or not. he is like a buddhist monk, right? he keeps that philosophy. >> that is the last time you have steve bannon described as a monk. [laughter] >> but he's very smart and very bright and capable and has a point of view. all these other things all leaks comes from management by confusion because there is no command and control. the command-and-control is the president. the president says i want to design a building. this is in his previous life. so what do you want me to do? i don't really. want you to do anything i want to use your name and i want to design a building. [laughter] then he says i want you to build it. but i don't really want you to build it. i need your bond and i will go shake the drywall contact. -- and i will negotiate to the drywall co

presidentaying trump's top choice is gary cohn, a controversial choice, if true.the hong kong open. waiting to see what janet yellen has to say, but the open on the mainland in china and hong kong, chinese stocks up .1% after slight gains at the immediate open, so set for a second day of gains. the hang seng climbing for a .8% as trading volumes pick up 30% above the 30 day moving average. on the data front, we could the getting china's june money supply and credit data today. giving the movements and treasuries, now a pickup in asian bonds. in the currency space, the climbing .2%, strengthening after the pboc said a stronger fix -- set a stronger fix. there is a piece in the pboc newspaper that china should expand the trading ban. elsewhere, the yen gaining a third of a percent, new session boj bonder the latest buying update. moderately than last week, raising its purchase while one year,s buying of to your, three or maturities limited. as -- wontronger stronger as global funds boosted the korean holdings. head of the bank of korea's policy decision on thursday,

there are certain -- >> people within the white house who don't like gary cohn >> i thought that was your idea? >> no, that is michelle's. >> so you're the conspiracy theorist did some russian lawyer tell you this or how do you -- why do you think you know -- >> only government connected one. >> gear is a great choice though i hope he takes it gary is a great choice for the markets. >> a trader versus a labor economist from berkeley? >> i'd rather have gary than janet yellen >> i think it's funny that a trader doesn't appreciate the bernanke/yellen party, the bernanke/are ye bernanke/yellen punch bowl you want more, there could be someone better than those two in terms keeg t termses juicing all your markets making you look smart? how can there be a better more accommodative, more let the good times roll more don't take our medicine type -- >> because gary had a seat at the table in 2008 and understood in the world that we were in at that moment how to survivor, how to get out of it he navigated gold man sax through it again, he's credible he's an excellent joyce, he's a student of t

steve mnuchin and gary cohn and the president himself, they met with a wide range of americans, lotsut there as well and it has been a good healthy debate and discussion. i suspect we will see actual language post labor day. so far, it is a good effort on tax reform. there has been a lot of cohesion among republican leadership. unanimityere is more coalescing around the principles we have discussed here today. they have a chance to get this done. my messages to them is to go big and bold. get the economy moving again. don't just settle for something small and piecemeal in november and december, go big. david: i struggle about how many politicians are not using the term tax reform. they are talking tax cuts. they are talking short-term solutions. how we push back against that? >> it is got to be transformative tax reform. that is what the economy needs. we have not had it since 1986. so much has changed in the economy and in americans lives and in our country since then. we have got to do something that is big and bold. i think about, when the left talks about unmaking the economy. we

to gary cohn about this.at a time -- janet yellen -- job that i get to come and work in the white house every day. it is a dream come true job. i am very happy. david: the mike wallace of today. out steel in this -- penny him down. how the fed it's a gift exchange rate. garrow, take us into the delicate question about exactly what will drive the strength of the dollar? >> it is not just the export sector. u.s. domestic reduction, workers competing against the cost of other foreign workers. this was a key factor when qe was initially launched in the dollar basically fell to a three qe,de low and each round of the dollar was lower than at the start of the round. we heard that the dollar was more sensitive in terms of short-term interest rates so as maybe we can avoid undue appreciation of the dollar. will be the that case. normally, short-term interest rates -- we can see that longer-term yields will be a bigger determinant than short-term yields. there is what works in the long run and what works in theory and

gary cohn very similar to the capital. former deputy administrator center for medicare and medicaid services. to our distinguished witnesses coming your testimony today is very important to s. because the marketplace is essential to the success in good health of the american people. it is my privilege not to call to order our hearing action now updating and improving the affordable care act to lower costs and ensure options for families. democrat take great pride in the success of the aca lowering costs them are protecting health and financial situated families. cover more than 20 million. but that is just the beginning of it. we talk about the additional names. that is important. what is also important are the over 100 million people in the 350 million people who have expanded and if it in one access under the affordable care act. this quality for every american no matter where they get their coverage. the aca health care cost growth has been slowed by the lowest on record. the republicans have been working from day one t

gary cohn as chair of the fed. how will the market react? x i don't know they will price too much into it. they have too many other things to worry about. there is no point trying to do the marginal pricing if the and on sheet is uncertain. guy: can i ask you about another central bank, canada. loony has gone up quite a bit. an interesting chart you can see on your bloomberg. the risk reversals, the fact reversals areeek above the one-month reversals, indicating the the market is buying calls. is there a chance for central bank will not deliver? >> i think the central bank will deliver. i think this is positioned the wrong way for the meeting. it is very much of you, you should be fighting this rally. commodities have been falling. the housing market has been having problems. we have seen the loony rally. we are seeing this market gets squeezed. on a record short position. i am too worried i have seen too many analysts and traders expressed that view. do, even ahat they mini correction, the market will continue to rally. guy: thank you very

that's one quarter >> dick, gary cohn, the heir apparent is now with the regime. who comes in here? are you saying someone from outside or -- >> absolutely. >> -- or is there someone within goldman? >> someone -- you can go private and stop playing this game with public shareholders or bring someone in from the outside. as i was about to say, bny mellon has been successful now even though they have a very strong management core, they reached out and picked up charlie sharpe they recognize you need a constant reinvigoration of ideas, goldman sachs is an insular company. everything is internal you can't get anything out of goldman sachs. simple question was asked yesterday to goldman sachs, what is the stock buyback program going to look like every other financial company has indicated what that is because it's not a major issue we're not going to tell you, is the answer we're not going to tell you on basically anything it's a private company that is paying its people well, that is showing no improvement over a ten-year period for earnings or revenues or any of the key metrics which w

>> i love having gary cohn where he is right now. going to be fed chair -- >> donald trump may as well. there is something to be said for that >> right now, being fed chair is arguably most powerful monetary policy position in the world, right but i don't know i think he's brilliant he's a brilliant guy, he's level headed and a clear thinker >> what do you wants a president trump in the fed chair >> i'm almost asking that rhetorically rates are low. >> that's where i'm going. >> the market is high. >> market is doing fine. yellen has been executing this exit i think reasonably well. >> i agree >> when she was the dove and everybody said was too dovishly fed chair, she was the one to first raise rates in ten years or whatever it was she's the one who has begun this local discussion about reducing the balance sheet and the market has barley concernely concerned all with that. so do you want a person to come in with tighter monetary policy, different? what do you want >> are you saying she might get donald trump's approval to continue b

maria: speaking of experience, this is going to be janet yellen testimony and now we are hearing gary cohn reportedly wants the job and leading candidate to succeed her, do you think cohn would be a good pick for chairman of the federal reserve? >> of course, those stories started coming out, i guess, yesterday or last evening. the president should have the right to appoint whoever he wants to appoint to govern the fed, whether that's gary cohn, whether that's janet yellen, somebody else. i've had a limited amount of exposure with gary cohn by virtue of being in this committee and i'm impressed and i think for the most part he has given the president good counsel in terms of how the overall operation of the economy should function. i've been very pleased the first six months. maria: rachel. >> rachel campos duffy and my husband been in financial services, you mentioned cohn, maria, some people are saying that maybe donald trump might keep yellen and is there anything she can say or is there any tone difference or something she could do to keep her job? >> first of all, i really respect you

he said he might renominate janet yellen to a second term, but is also considering gary cohn mr. trump told the "journal" yellen has, quote, done a good job. he also said he likes her because she's a low interest rate person. the president said he will likely announce his pick at the end of the year. >> fed set to raise interest rates in december. >> exactly >> she has steered this economy and this policy toward a more normal place of a little bit higher interest rates, slow enough to not upset the apple cart and so far so good. and i think the recognition of that especially going back again some of his campaign rhetoric where he was bashing her for these low interest rates is notable. >> he obviously changes his tune we've seen it before hearing steve liesman on this, if we got to october and we vrnts h haven't had a nomination, that would start to be a bit late right now we're talking about it a lot, but it's not typical that we would have had the nomination yet. but fascinating to hear those two names singled out. >> and we will get that interest rate decision in just under ni

cheryl: what about 4 and a half trillion balance sheet, whether janet yellen or gary cohn and how sooney need to start? >> it looks like they will start in september. i think she will be very cautious and data-xentant as she has said in the past. i think it will be gradual and a little bit at a time and they'll reassess and stop if the economy starts to roll over. lauren: one reason we might not seeing inflation is because the price of oil is so low. yes, it's as 48.16 right now, do you think it's reciprocal? >> no, it's pretty much a secular issue. we are flooded with oil. even opec, even though they say that they're cutting, in the end they can't really, they really have to fund their social network program. so, no, i don't think it's reciprocal. cheryl: david nelson, thanks for the perspective, we appreciate it. >> thanks for having me. lauren: huge data leaks has exposed millions of verizon records but the company says it's an outside vender that is responsible. cheryl: here we go again, tracee carrasco with the very latest on the story. good morning. >> names, addresses, phone num

as we start talking about the trial balloons if you want to call it that that would put gary cohn in. if you start talking about leadership change, it would be more hawkish or dovish, the market would react to that what do you make of the possibility of gary cohn running the fed. what do you think that implies >> i'm not sure it's clear whether gary cohn will be hawkish or dovish. what is clear is either from the democratic side or the republican side, it doesn't seem like a lot of resistance to the idea of a gary cohn as head of the fed. >> we have not had a lot of businessmen running the fed. >> that's the big difference he's not an academic there might be concern from the part of retail investors because he is a goldman alum and wall street exec, and i think sometimes there's concerns that there's too much of that already in government. but at the same time, he's definitely understands the markets and he understands how business works so, i think his confirmation frankly will be relatively easy sell >> michael, what do you make of it all >> i don't doubt ben white's reporting that

steve mnuchin, gary cohn, and others in the administration know better.ke and mirrors they should use facts and figures, economics and analysis on a subject as serious as the nation's economic outlook. next on "gps" -- >> build the wall! >> the proposed wall on the mexican border is just the start of the nationalism and isolationism that could be coming to this new america. the man behind it all, steve bannon. we'll go inside his brain when we come back. really. for me. bye. another referral. our customers love us. (nail gun firing) (glass egg shattering) when the unexpected strikes... don't worry we've got you covered. the hartford strikes back. on a hotel just go to priceline. they add thousands of new deals every day at up to 60% off. that's how kaley and i got to share this trip together at this amazing hotel. yeah ash and i share everything - dresses, makeup, water bottles... we do? mmhmm. we share secrets, shoes, toothbrushes... what? yeah i forgot mine so i've been using yours. seriously? what's the big deal? i mean, we even dated the same guy. who

in terms of janet yellen and gary cohn, he's happy with his job. nothing further on that. >> and has the president watched mr. wray? he said in a tweet, i don't have time to watch tv. you think he had a chance -- >> i don't know if he saw much of it, if any. i know that he was doing quite a few meetings earlier this morning. so as far as i'm aware, i don't know if he saw any of it. >> i want to give you a chance to respond to the bill of impeachment. >> that is utterly and completely ridiculous and a political game at its worst. thanks so much. >> neil: welcome. i'm neil cavuto. you're watching "your world." you had a chance to listen on a delayed basis to the white house under press secretary going through some of the litany of events that have been dominating the news. even though we have not seen the president in three days right now, suffice it to say that we're told the president did not have a chance to catch his fbi pick chris wray and the confirmation hearings. they went well for mr. wray. he said he would not accept or was he even asked fo

gary cohn said the same thing to you two weeks ago.unveil something the first week of september but it is going to be hard given that congress is going to be gone the whole month of august. it does seem the white house has been interested in putting trial balloons out there. while the treasury secretary say that is not considered perhaps they arrive at that because they face backlash when these details did get out. >> in preparing for tax reform he has been learning from the push on health care. what lessons has he learned? >> they learned they need to figure out exactly where republicans stand on this. speaker ryan has been committed to this, senator hatch who chairs the finance committee on the senate side has been soliciting feedback but unclear what all that feedback has led to and what specific contours could be present in this reform. so, we're still in a wait and see mode here. >> lessons they learned that different republicans have very different views. >>> coming up, a former fbi double agent who worked in russia weighs in on

all the gary cohn stuff yesterday was interesting. because depending on who you are, he's like a rorschach mark grant said that i think gary cohn will reverse the errant yellen policies to people who think that she has been behind the curve, that means that he would raise rates. but mark grant was talking about that these recent increases given the economic factor have been counterproductive, with the rest of the world still easy, that it was a misthat that yellen was raising so it was weird to watch some people think that gary cohn will be great because he would raise rates. oh, he would be great because he would reverse the rides. so weird >> if you think donald trump was a wild card as president, gary cohn as a fed chair is even a wilder card. >> because he's not an economist? >> he's not a twrrained economit but he grew up in a trading environment. he was lole on the commodities exchange for years so a completely different skillset than the fed requires. >> but as somebody who always thought that the exit for easy money would be e

gary cohn said this morning to a listening tour of real estate experts that he says they have gottenthrough the major parts of tax reform, and they're just basically tweaking the rest of it tomorrow. during this hour, i need you guys to join me once again because the president has a tax reform speech during this hour. right now, the markets seem to like much of the news up 84 points. but before we wait at the moment to hear from sarah huckabee sanders, let me get to our democratic strategist cristy and our republican strategist kevin paul scott. cristy, since we didn't hear from you the last go around, let me ask. what do you think will be the first question out of the press core's mouth? which subject and how will they phrase it? >> yeah. no question the first question is going to be about scaramucci and whether this signals a new beginning with general kelly. or whether this is, again, just evidence of more chaos and confusion out of the white house that is right with it. and i will say it seems that sarah sanders in particular has had a lot of chaos in her own department, both los

rebecca, op-ed this morning from gary cohn and also national security advisor h.r. mcmaster in the "new york times." let me read part of it, the united states cannot be a passive member of the international organizations. we are working with friends to confront common threats, seize mutually beneficial opportunities and press for solutions and shared problems. now, one interesting note, russia, putin not mentioned once in that op-ed. in addition to that, does this fly in the face of america first? saying we cannot be a passive member of international organizations and the international community, or is there some way it goes hand in hand, rebecca? >> i think this is certainly an effort by the administration to try to reassure some of our international partners, that america first is not going to mean isolationism. but this has been the major concern among our partners overseas that the united states isn't really interested in working toward our shared common goals but only its own goals. and is pursuing this more isolationist path. so you can see with this france tr

i think gary cohn. do i know him from a previous life yes.e would be fabulous. >> some of that previous life was at a firm that was concocting securities that were not, shall we say, of the greatest quality, some said betting against clients. back to hearings in front of senator levin. >> not fine moments. >> you can say he understood the root of the crisis. >> donald jr. would say there is a way to do it. elizabeth warren would get on him. >> you would have goldman alums at treasury and the fed not to mention some playing the would he get the votes. former democratic, who knows. >> giant squid. i always hated that analysis. >> he admitted they did some things. wasn't in denial. >> a long time ago now. >> i think this notion i think gary cohn is well respected on wall street. i think if you had an academic let's give someone not an academic a try. wouldn't you love a guy who knows how to sell bonds? >> got news regarding apple this morning. it expects a delayed launch for the iphone 8 cutting shipment estimates for september quarters. there i

both that candidates, janet yellen and gary cohn, they are both dovish.ark: we have one more fed hike this year and next year, is three looking way too hawkish? >> i think so. all of our hopes of policy liberalization rest on the trump reforms. the corporate tax cut helps. but it is not tax reform. and you have infrastructure spending, which is harder to do. but the temp tatian to distract people with domestic politics -- but the temp tatian to distract people with domestic politics -- but the temptation to distract people of domestic politics, it is harder. trump could do it with north korea. this is the risk. geopolitical tensions increase and markets are very unprepared for this. mark: kathleen hunter, thank you. up next, five years ago today, mario draghi pledging to do what ever it takes to save the euro. what is next for the ecb? this is bloomberg. ♪ mark: you are watching "bloomberg surveillance" and i'm mark barton in london. the spanish prime minister becoming the first sitting prime minister to give evidence in a criminal trial. he testifies tod

>> well, yeah, gary cohn was the name that had been floated. gary cohn is also a name that gets floated to be the next head of the federal reserve. the president, you know, they talked possibly about kohn in that spot, though, also hasn't said one way or another what he may or may not do. but you're right. john kelly, this kind of came, his name, at least, out of nowhere. but now he is the new right hand, the new top aid here at the white house next to president trump. liz: thank you, blake burman. let's take you back to mark steyn. john kelly is a star. he came -- he enlisted in the marines in 1970, grew up in brighton, boston. he ran the operations in the iraq theater during the height of tensions there in 2008. the president has full faith in john kelly, given his performance in border security. >> yeah. he has actually had a pretty good six months at homeland security, which is more than you can say for reince priebus. and i think the idea of appointing priebus had been to kind of make trump a house-trained republican president. to move him

she is handled herself very well. >> as for gary cohn as fed chair? is problematic because this is consistent with this president, a way of pointing people to agencies with a basically disagree with the mission. he is such a person. he believes in taylor rule and wants a mathematical kind of decision-making. -- weieve in equity firms come -- how this agencies should be run. me ask you about the case the fed chair is making. the great -- the case for the fed balance sheet fairly soon. how effectively are we making the case? i understand very well what she is looking at is the percentage of inflation. is a real guide for increased interest rates. when you have a low inflation rate, you have to think about what is happening in the job market and whether or not is going to trigger unemployment all over again. alwayscautious and careful and doing the right thing. >> we just learned that a vodka trump and jared kushner, two white house advisers, will be here soon. in light of what we learned about the rush of investigation, the latest twist in the investiga

he might want janet yellen, but on a political basis, gary cohn has emerged as a favorite. that's a little odd because cohn is a democrat. change inreally get a parties, which is why a lot of people thought maybe when hubbard or kevin were sure somebody who's register republican -- or somebody who is a registered republican would be a favorite. scarlet: kevin, let's talk about john mccain. the senator from arizona made the trip back from arizona to washington. he appeared on the floor of the senate. he cast his vote on the motion to proceed so the senate could to be -- could begin debate on health care, and he said he would not vote on the health care bill in its current form. he mentioned for himself that his next step would be to begin debate on a policy defense bill. he didn't address much time to health care. how pivotal is he to this process, to the senate republicans' effort to repealing and replacing obamacare? kevin: to be candid with you, it has nothing to do with politics or policy. just a personal of senator john mccain who made public several days ago his diagno

from that you get the gary cohn speculation and you also get people being mentioned. it's hard to say whether janet yellen is going to be reappointed. the betting is she's not. there isn't a clear favorite to replace her. according to donald trump yesterday, we will not know for a while. vonnie: michael mckee, let's to talk about great bloomberg international economic correspondent. be sure to join us for a special report, the fed decides. 7:00 p.m. new york time right here on bloomberg television. michael mckee will be in that lockup. let's check in on the first word news this afternoon. mark crumpton is here with that. trump is banning transgender people from serving in the military. on twitter the president said the military must he focused on victory, and quote, cannot be burdened -- cannot be with the enormous medical costs and disruption the trans-genders in the military would entail. --june, a plan was allowed stevemajority whip scalise has been released from a washington hospital more than a month after being shot during that congressional baseball practice. u

gary cohn said the president is committed to getting a tax reform bill this year.ning me, americans for prosperity director, tim phillips who sat on a panel today with treasury secretary mnuchin. what did you shear from him? >> he reaffirmed the blueprint which the administration laid out that lowers rates across the board, simplifies the code and gets rid of some of the coffer-outs in the code that favor the politically connected. he made a point that they are determined to get this done this year. we are pleased that the joint the same from last week did not include this border adjustment tax. we think this is a great blueprint and we are ready to move forward. cheryl: did the question of corporate taxes come up? the administration pitched 15%. did he address that? >> he said the corporate rates in the blueprint that calls for 15% is the goal. it's important to go big. if you nibble around the edges, it won't get this economy going and give the growth in this economy that we need. we are urging them to go big and the blueprint is 15%. cheryl: i want to bring in g

the uk hire by as much as 1% on the ftse 100 as well. >> making headlines, top white house adviser gary cohneportedly the leading candidate to replace janet yell even en a chair. sources say that the job is cohn's if he decides he wachbtss it he would be the first federal chair in four decades not to be an official economist. yellen will head to capitol hill this morning to testify before the house financial services committee. a quick look at the ten year treasury note which has seen yields over the last two weeks rise, but over the last couple days slip back lower toward the 2.3 handle joining us to discuss, market strategist and portfolio manager at pimco good morning thanks very much for joining us. first up, let's talk about january either yell janet yelles testimony. what would be top of mind to try to gauge what she is thinking? >> we want to know when the fed will implement its balance sheet reduction program. the fed has given about plenty of indications that they will announce it in september potentially implementing it around that time and then proceed with ragz interest rates who

in gary cohn's case it's because he's not an academic.aybe in john taylor's case, maybe he is an academic. at the end of the day, who donald trump nominates. >> absolutely. it's important to remember this person also has to get confirmed by the senate. they might be good candidates for one reason or another but i think you also have to remember this position does play politics to some level. you have to pick someone who will be broadly acceptable. vonnie: jackson hole coming up, it's the annual symposium but it's well well-known for potentially having market moving speeches. this year mario draghi is the person everybody will be watching a jackson hole. traders have already started to look towards that. how are they pricing in a potential jackson hole shock? >> it will be interesting to see how that changes in the months coming up. we know jackson hole isn't until august. we have some time before that happens. it is something we will all play what -- all be watching closely for that speech. we don't have the full schedule yet, so it will

gary cohn is said to replace yellen next year as the fed chair gets ready to face congress. receipt with caution. u.k. unemployment hitting a low but wage growth is weak. he is not ready to raise rates. donald trump, jr. and russia stay in the spotlight as pimco warns the controversy could dim u.s. economic outlook. david: welcome to bloomberg daybreak on this wednesday, july 12. i am david westin with alix steel. jonathan ferro is off today. alix: here are the markets. s&p futures relatively flat, although the high for the assion, sterling getting boost. it was lower earlier and then we got those job numbers out of the u.k. with the 10 year treasury pocket , that is supply later today as markets handle that as they move lower. crude is getting a big relief rally by over 1.5%. they lowered the estimate for production in the u.s. for next year but this feels like a call before potential more storms. david: time for our morning briefs. it is a big day for the federal reserve. at a: 30 this morning, 8:30 this annual monetary policy report delivered to the house financial servic

he want a presence at the fed, he want gary cohn who is a very, very successful wall street man.hat trump want is what janet yellen will deliver in the shape of low rate, a cautious and measured retreat from low rates and the most aggressive return to radical monitoring measures. bar require doesn't seem you are buying this low interest rate cycle. >> i think they will retreat from it. and in the retreat the world will reconsider the nature of our man tearive affairs and the nature of money itself. you worry about valuations. jim: i'm going to sound like jim grant. i don't mean to be repetitive. but our institutions are repetitive. i say there is morris can than reward in this market. stocks at current levels are worrisomely high. interest rates are certainly low. we are unreasonably complacent with respect to the capacities and judgment of the federal reserve system and i say that that now is a great time not to be caught up in the crowd which has to invest as if by compulsion. never before have we had so many trillions of dollars invested without regard to valuation and price.

there is one reason, this is the ran why gary cohn is working for trump.ause what he believes the democratic party did to the goldman sachs business model. liz: not because he didn't want to wait around to be the ceo because lloyd blankfein is still there? >> yes. that's it too, but this is one of the reasons why. because he believed that the democratic party destroyed goldman sachs' business. it was something -- liz: they're making money. >> they're making money, but still morgan stanley is ahead on market cap right now. that says something. even whatever it is, we'll see at the end of the day and we'll update. liz: thank god you didn't speak spanish today. >> habla espanol. big daddy delgado said i spoke very well. liz: okay. don't speak french. 26 minutes away before the closing bell rings. dow jones industrials up 50 points. s&p, nasdaq on track for new record closes. >>> coming up the senate may be struggling with its obamacare reform plan but the house says, so what? we're plowing ahead with other items on the trump agenda the. the republican who pro

steve mnuchin and gary cohn. they articulated a strong plan to make u.s. economy more competitive.n important part of that. repatriation of overseas capital. if you want idle capital back to work in the real economy, investing in plants and equipment. my flame are americans, at least half of them. in the last few decades, american infrastructure as we see received less attention it should have. the focus on these issues of productivity, investment in the real economy, of making the economy more competitive, protecting an economy of is tomorrow an admission of weakness. protectionism as we all note results in greater poverty spread amongst a greater part of the population than wealth creation. but focusing on making the the economy more competitive. the edu has been and uncompetitive sector for a long time. so i think that focus is essential. of course, there is the legislative agenda with some sequence sensitivities between reform of the healthcare plan or the obamacare and tax reform. and all of these must be looked at in detail and it's not appropriate for me from overseas to com

said she, gary cohn and a few others are in the running, addressed apple. said tim cook had called him promised to build three factories and also, of course, on the topics of the day which include health care. let's get more reaction from ylan mui. >> just so you know while the president was speaking mitch mcconnell was also speaking on the floor of the senate and he toke about attorney general sessions and said that he's doing a fine job, did the right thing to recuse himself from the russia probe, even as the president was criticizing him for that. >> reporter: well, a number of republican senators have come out expressing support for attorney general jeff sessions, including john cornyn, including lindsey graham, but in this news conference that just wrapped up, president trump continued to say that he was disappointed in sessions take a listen. >> i am disappointed in the attorney general he should not have recused himself almost immediately after he took office, and if he was going to recuse himself he should have told me prior to taking office and i w

well, yeah, you've got mnuchin working on it, gary cohn, smart people who understand business finance and taxes, we can only hope certainly. i want to bring in lori rothman into the conversation, the story at the new york stock exchange, the turmoil is shadowing decent earnings stories. >> reporter: absolutely, the dow is coming in a little bit. off 61 point. we had seen it down 90 or worse throughout the trading session. but look at s&p sectors that are lagging at this moment. the worst performing sector, financials, materials, industrials, all down today. well, these are sectors that are especially sensitive to infrastructure spending. tax reform, right? the president's agenda that's supposed to be coming after health care, so with the latest snafu with health care reform, what happens? how much further? i hate to use the phrase, you have to kick the can down the road before we get to the key agenda points that got president trump elected in the first place? wall street is a little concerned but the tale of two cities, the earnings season off the top, tremendous earnings, netflix po

you got any inside enfoe on this gary cohn thing? >> no. talked about this for a very long time -- >> sorkin has been -- >> -- also by the way -- >> and the idea that the guy who is in charge of the search committee, ends up being the guy who the search committee finds >> i thought about that. >> we've seen before >> funny how that works. >> very, very high levels. i want to talk real quickly about what, you know, ylan was talking about. what we're wondering, one of the big questions is when will the fed begin this balance sheet reduction. and i didn't hear anything ylan said that gave us that insight she said it's going to happen this year. i don't know that the matters a whole lot. jim let's come back and talk to you about whether july, september matters a whole lot. whether they end up -- you on your way out right now >> i don't think it matters that much i really don't i think did she say any words like appreciably, and if they weren't going to commence this, you know, it's kind of like saying i'm going to be aggressive but oh, we're no