kathleen: i am kathleen hays in new york.take another look at the federal reserve's decision today to not change very much, but to reinforce market expectations for an important move they are now planning on making this year. ufj of tokyo, mitsubishi, economist chris rupkey joined us in studio. your notes seemed underwhelmed. you said they just changed three little words. it is true. they suggested this year. are have confirmed they going to start doing the balance sheet unwind even at a time when a lot of people are looking askance at inflation and saying, you're making a move that can make a difference. and inflation is getting weaker. chris: even someone in that dovish camp with concern they are not meeting their inflation objective like lael brainard, she is on -- she is comfortable with the unwind. do they need to keep raising rates as aggressively three times a year, if that is aggressive. do they need to continue with the rate hikes because it is not at 2%? do not forget, the unwind is something running silently in the

kathleen hays, thank you.ry we are tracking, one bloomberg broke a couple hours ago, the special counsel investigating alleges russian interference in the election is expanding its brief to look into president trump's business dealings. david: sophie schneider is here, following this from the beginning. we know it is significant, jody, how significant? could be damaging to the president, because it brings it closer to him and his business dealings. which the investigation before into russian interference and election, bute this seems to open up a new chapter. it is also interesting because president trump himself actually mueller, the special investigator, from crossing the red line into looking into his own a business dealings, saying there would be a red line that would be crossed. perhaps he anticipated this was coming closer to him, so it is a very interesting time in the investigation. yvonne: interesting to hear from sarah huckabee sanders saying the president could fire moller, but he will not. there ar

kathleen: very good question.be we will get because that press conference -- which i will be attending in this building behind me -- he will be answering questions for a good hour from reporters on every aspect of this. bank of japan is not winning the inflation fight yet because it has not hit its 2% target. the key rate is 0.4. the key short-term rate, -0.1. they will keep the 10 year note yield tethered to zero. they will keep buying bonds up to 80 trillion here. will they claim success on gdp, growth, jobs? certainly gdp growing five straight quarters has not happened in over a decade in japan. one thing for sure, people are saying including jasper cole, that the bank of japan is going to continue to reflate. it is moving off the track with other central banks that are trying to head away from that track. >> for the bank of japan, it is very simple. japan has got its own objectives. these objectives are to hit 2% inflation. we are nowhere near that. it is about the synchronization, decoupling of monetary polic

kathleen: it is hard to tell. the republicans in congress have been willing to put up with a lot of unprecedented things. chuckwill come a point -- schumer said this. there will be a watershed breaking point where they will get up in arms and challenge the president, but i do not know that firing sessions will be that point. it very well could be, though. something as big as that weren't a correction in the markets? are the markets going to continue to you ignore -- other markets like to continue to ignore it? thomas: one of the questions i asked my client last week, "when you talk to clients, what do they think about trump?" when talking to company management, trump does not come up. tax reform, it does not come up much. that was the rally. the one thing people forget is the one thing that died was the border adjustment tax, and that was a real positive. pre-election, people thought the market was going to tank, which i guess it did for five hours, because of trade. some of the trade stuff backed off. it will be

kathleen: it is significant. moment ago that they are sidestepping some of their policy differences, and really, it sounds like what ross is going to be focusing on is kind of beating the drum of the trump campaign manager about the need for open markets, and the need for a more fair trade relationship between the u.s. and china, and that seems to be a real focus of the trump administration. we saw it earlier this week with the white house came out with essentially if wish list on after negotiations, correcting what they see as sort of a bad -- during the campaign, trump promised to trash these bad eight deals the u.s. had. what the imitation is looking for is kind of that rhetoric about, at least, rhetorically, following through on that campaign pledge to make trade warfare to the u.s.. guy: great stuff. kathleen digest with hunter from washington. the story that keeps on giving. every twist and turn, there seems to be new aspects to it. kathleen hunter. let us get back to you peter kinsella, joining us from cba

kathleen hays is here with more.t is interesting -- we do not think that by this time we would be talking so much about the balance sheet reduction. kathleen: we didn't, a year ago. march -- but no, we are ready to go. it is clear they were debating if they should reduce the balance sheet this year. the only question is, when? let's look at key phrases from the fmoc minutes. we decipher them to see what the fed was debating, what the takeaway is. several, if we are to start within a couple months. does that mean that in the july meeting they made an announcement and start winding in september? that is what it gets people thinking about. readyaid, better to get later in the year two address inflation. say, are we sure we need to start reducing the balance sheet? that the suggested danger of moving to quickly with this balance sheet reduction, especially in the face of inflation, would be that it are showing you are not on a gradual the, and that could roil markets. with so much division, can the fed start reducing the

professor -- go ahead, kathleen.sk you about the controls and the vulnerability of the bank of japan to the fed signaling balance sheet reduction. policy,dropping its they are also meeting this week. is this a problem for governor kuroda, as well? takatoshi: there will be pressure. to a lesser extent, the ecb low rate should go up. the yield curve control says about 0%. they did not define what it is about. or -0.1 or 0.2 or beyond? that will be tested. well andonomy is doing inflation rate start to go up, i tolerant they will be for the long rate to go up, which will allow the tapering in japanese style. thank youfessor ito, for joining us. also the former deputy vice minister of finance of japan. and kathleen hays of bloomberg in tokyo who is covering the boj meeting for us. you can get around above that story and many more in today's edition of daybreak. subscribers go to dayb on your terminals. it is also available in the mobile app. you can customize your settings. this is bloomberg. ♪ yvonne: this is "dayb

kathleen: i think the fallout would be serious.his morning that quoted a republican senator , and he said that he didn't think it would be a good thing for trump to fire robert mueller. he said he didn't want to comment on it that much, because he couldn't even believe there was a possibility that these conversations can be occurring in the white house. by not commenting on it, he sent a message. that is what republicans are saying. manus: a democrat from rhode don't think that is politically survivable. i don't care how much collateral damage he has to do in order to put himself into a position to have somebody fire moller. it is a tenuous situation. was a scoop by bloomberg. what does all of this mean for the reform program from trump? lots of guests have come in and said, look, he is getting so caught up on this side of the fence that he is got to double down in terms of delivery. health care has gone to the wilds of the west of ireland. he has to deliver on tax, pull something begot of the back. kathleen: i think pulling a rabb

kathleen: let's put it all together. mentioned three things that intertwined, especially in the markets' mind. big, the sheet that is fed has sworn to reduce. let's look at this chart, it is a simple look at the balance sheet. $4.5 trillion. you can see the white line is treasuries. that is the majority, $2.3 trillion. the yellow bars are mortgage-backed securities. almost an equal amount on a gradual basis. what is your big concern? what is the number one thing we should be focused on if the fed gets ready to do this? whatthe real question is, the interest rate impacts are going to be. what i thought was interesting when you look at the minutes this last june meeting, there was a wide divergence of views among fmoc participants as to what this impact will be, even with the little baby steps that they have proposed in their plan that they publicized. what you see, there is a group of people who are concerned about the fact that there could be a significant impact. there are a number of people who do not think there will

kathleen hays with a look at this. what could be here? -- we hear?sia will have some speakers, but this is a relief for the fed. with the big slowdown in the first quarter it happened in previous years, but we had not in the expected rebound in the second quarter. the seller news is that all that happened is gdp got back on a slow, steady path, because it quarter. in the second that was up from 1.2% in the second quarter. consumer spending picked up, leaving the gdp rebound. looking at 7965, a simple chart. it shows you in the far right hand, consumer spending was up 2.8% in the latest quarter from 1.9% in the first, that was revised down here. consumer spending is better. business investment healthy, trade and export also helped gdp. the second quarter, a shortage of lots. a lot of the good cannot be found. 1.9%, and thep fed is looking for 2.2% gdp growth, so they have to get 2.5% for the whole second half. we don't know if they can. the fed is on track for the balance sheet unwind, one more 27 -- 2017 rate hike. this should give the fed enough con

let's visit with kathleen hays. what do you have a kathleen?athleen: let's definitely start with the united states. index,chasing managers' this is one to watch in the united states. all of these gauges, when you look at manufacturing, if they are above 60, they are signaling growth. 57.8.mber, if you compare to previous months, the manufacturing -- what isnd the going on with purchasing managers, they have it retired. powering up again. new orders hitting a three-month high. postedof 18 industries growth. again, it was not just the u.s. you saw the survey in japan enjoying a big jump in optimism. the pmi moved back above 50, signaling growth. we have the europe pmi rising. mexico, their pmi rose as well. even in countries where it slow down a bit, the pmi still stayed above 50. how much will manufacturing pick up jobs probably? will it make much of a difference? the main conundrum for central banks is inflation. falling inhe rate is many countries, inflation is not rising. in sum, they are pulling away from the inflation target even more. rese

kathleen cairns, abc7 news. alison: thank you. now take a look at this. this is in college park. demolition is continuing a building destroyed by fire. that needed prince george's county largest fire response ever to put it out. damage $40 million. >> the fire across the street forced closures there and evacuation at a senior center nearby. nancy: the crews cleaned up the vandalism at the cabin john regional park in potomac. at walter johnson high school student accused of spray painting and setting a small fire in a dug out and the legendary d.c. sports writer. alison: must see video out of china. captures the moment a mud slide wipes out everything in its path on a road. look at that. incredible. the big truck slamming to cars nearby. eight cars were swept away. crews had to rush in. it's not clear at this hour if anyone was hurt. nancy: really see the chain reaction to all of that. alison: a crazy situation there. all things going on around the world right now, you realize it's hot. but we are still pretty lucky here. even though today does happen to be the hottest day of the

kathleen hays, joining us from new york.sing on this reason rout in the global bonds. 12:00 p.m. eastern time tomorrow. lb midnight tonight. -- that will be midnight tonight. a lot of coverage of their on a very important topic. another important topic, the jobs report. we are all counting down to the latest payroll numbers. there are conflicting expectations. we will ask for prediction. this is bloomberg. ♪ yvonne: we're counting you down to asia's major market open this morning. japan futures it down 0.6%. against the$113.14 dollar. betty: we're talking about the jobs report. we are all counting down to the latest payroll numbers. the decision about future rate hikes, the pace of hiring has slowed in recent months and there is a lot of talk about companies's inabilities to find workers with the right skills. that is pressuring wages. let's discuss this with a chief economist. first off, the numbers. what do you expect tomorrow? >> they kept solid momentum. it was at 4.3%. they are taking a breather after having dropped a l

kathleen hays here with more.he fed hike in june, yellen stress to the transitory nature of weaker inflation. but she changed her tone a little bit. kathleen: a little bit. what she did was acknowledge the uncertainty around the inflation outlook. she mentioned the transitory factors like the new mobile phone prices and drug prices. put them in a broader array that the fed is watching, bottom line is tighter later market -- labor market will push prices. she said it is to early. let's take a look at the bloomberg. you can see a redline that the picks the fed's 2% inflation target. that is where the fed wants inflation to go. you can see turquoise line that includes everything. it is above 2%, now down to 1.7%. the white line at 1.4%. they are clearly headed in the wrong direction. have a bitrket did of a rally. we were speaking earlier with the chief economist and he said, yes. the fed talk of tightening in an inflation downturn may be one reason bond guys like this. >> it blows me away. they have been tightening

kathleen: absolutely.here was a report last night, talking about how the president has gotten white house officials to look into potential conflicts of interest on the part of mueller or other investigators working with mother to investigate him. they are looking to discredit the special prosecutor. it is not outside the realm of possibility that we could see trump try to remove some top justice department officials to get someone willing to fire mueller. francine: can he do that? kathleen: what he would have to do is, only the acting attorney general, which in this case is the deputy attorney general, campfire mueller. he would have to fire the deputy attorney general until he got someone willing to fire mueller. francine: are there parallels with 1973? kathleen: people are drawing parallels to 1973, when richard nixon basically did not, got rid of justice department officials to derail the watergate probe. we know how that ended for nixon. francine: what are the gop doing? kathleen: we had a very telling

kathleen brooks joins us again to discuss.ministration unveiled a list of objectives it wants to get from the nafta deal. what is worrying for us in the uk is that i think the thoughts about the objectives is they are quite protectionist. it is like the president really likes his barriers. he is really sending a clear signal that the us isn't going to run massive deficits. you are going to have to take our stuff and we will ta ke have to take our stuff and we will take less of your stuff. what is interesting, yes, 0k take less of your stuff. what is interesting, yes, ok the us has got a deficit with mexico. but they have a deficit with mexico. but they have a surplus with canada. exactly. he does well out of it with canada, but not as well as he would like to with mexico? well, this isn'tjust about nafta, he is using that as a template for the rest of the world, probably as a direct link to china. it is very interesting at this stage to see how the us are negotiating the new trade deals because we want a trade deal with the us

that's done all the time. >> right. >> governor wolf did it with kathleen kane. >> right.o that part's not illegal per se. it's the reasoning behind it or the method. >> not kathleen kane. >> and in the almost 20 years that congressman brady's been in office, he has never had a real serious opponent in the democratic primary. and until the last redistricting, that was a congressional district that was overwhelmingly african-american. you've had a number of african-americans in this area who have looked at that seat as one of opportunity for them and have thought about challenging him, but, for some reason or another, whenever it comes down to election time, there's never an opponent against congressman brady. i think that there is some political machinations there, and, again, i think the fact that they have listed his closest political consultants means something. >> well, but it's also -- jimmie moore was actually a friend and ally of congressman brady, and brady was the guy who helped him get elected, despite the fact that he was not endorsed by the board -- not once, b

they were introduced by his sister, kathleen. called kick. she worked at the washington herald and gaining was a columnist there. she interviewed top people in walk who came to participate any war effort which as j. edgar hoover point its out was a great cover if she was a nazi spy. she was fascinating, beautiful, by his own admission also quite, how do i phrase that's delicately -- virgil in the bedroom and he wanted to mary her but cooperate happen. >> wife why did the romance draw attention from the fbi? >> 1943, ick good had been married and divorced once and tried her hand at film acting, falling in love with a film director. the odd thing is inga plugs in so many different part's therefore world. it's very wild story. but she -- didn't turn out to be a great actress. decided to do something different and always enjoyed writing and so she had a great deal of charge so went to a couple of danish newspapers and said would you give me press credentials to i can become a foreign correspondent in nazi germany because that's where all the worl

here to wal legal jargon and the questions of law -- kathleen clark -- a law professor at washington university, specializing in government ethics, legal ethics, and campaign law. nice to have you. ms. clark: thank you for having me. soledad: so everyone who ever wanted to be a lawyer, is a lawyer or wants to talk about the law has been digging into all the nuance of this case especially around the release of emails. the words they are using are words like collusion, treason and conspiracy. so i would like to start there, just with definitions. what is the definition of collusion? ms. clark: collusion is not a legal term at all. we have been tossing around that term for months now and i think it is a useful summary of people or organizations working together toward a common goal. but that is not actually a legal term. there are other legal terms that are relevant here including conspiracy and aiding and abetting and these are terms that are relevant against the background of our campaign finance laws that prohibit foreigners from contributing, making contributions or providing anythi

kathleen hays with more, inflation dropping. it increases the conundrum, they say, because unemployment is low, the economy has gotten stronger. not only is it not getting closer to target, it has fallen the past three months. consumer spending also looking on the weak side. here is a chart. if you give me a second -- there we go. because -- 2589. this was the personal spending and income, these are the numbers that watches closely. -- the fed watches closely. the turquoise line is down to 1.5. they got down the first time in five years. , but not as abrupt steadily lower in the core inflation rate. , the odds of a rate hike are also coming down pretty substantially from where they were earlier. what we have now is the world interest rate projection. expected inno hike july, no press conference, but september, gress what -- guess what we see the bonds have already declined. the odds were down 16%. september here, just over a one into chance. that is a coin toss. not reallyis believing this. one thing you have to keep in mind, wh

kathleen: this is important.eeting last week or they pushed their inflation target date out the year. the fact that they were discussing it, some said it would be bad -- good for the bank of japan. early toid it was too start discussing it because we are so far away from it, because it is so way -- so far away from its target. what you will see is wages. this is a long sweep of history, back into the early 1990's when the property bubble burst. the far right-hand side, you can see how their wages have risen. they are stuck in that little band. but a lot of people in japan would like to see is a stronger economy higher -- economy. there was frustration about that last week. this is for the month of june. .he core cpi is study a little lower if you take out the energy prices. it is not rising yet. we talk about it all the time. last half empty or half full? it is staying where it is as they wait for it to move up a little faster in the month ahead. david: monday through thursday it is always half rule. -- full. the

they were introduced by his kathleen, everybody call her. she worked at the washington times which is something absorbed by the washington post and inga was a columnist thereto. she did a column called did you happen to see where she interviewed people who had come to participate in the war effort which as jay and her hoover pointed out was a great cover if she was a nazi spy kennedy, she was fascinating. she was beautiful his own admission, she was also quite how would i put this, she was very skilled in the boudoir. he found that fascinating but found everything about her and he wanted to marry her but it just didn't happen. >> why did the romance draw attention from the fbi. >> in 1934 in the had been married and divorced twice and she had tried her hand acting, falling in love witha man who would become the second husband . charlie chaplin considered one of the geniuses of cinema. the odd thing is inga plugged in so many different parts of the world, it's a very wild trip but she turned out to be a great actress so she decided to do some

. >> kathleen from st. augustine, florida, good morning. >> caller: good morning. one of the things i never hear discussed is hmo programs. i have been on hmo programs since i was a young girl and i am in my late 70s now. when i hear people talking about the free care offered in other countries they don't understand that in those countries, all of my family live in a country in which there is universal or whatever you want to call it, the government takes care of the education of the doctors in exchange for which they gave so many years. in england, ireland and scotland, countries which i am familiar with they get their school paid for. people don't understand there is another component nobody talks about. i think the hmo and clinical system are fine. it isn't fair for us to confuse that. i think some thought should be put into a good clinical system and the idea you have to have your own doctor what nonsense. i know in england and ireland it is a clinical pursuit and you have the doctor who is on call to treat you. you don't have the luxury of going to private doc

kathleen, a lot happened over the weekend as it always does.was a big weekend in terms of developments for the health care bill. thesem total is we have series of false start when it comes to the legislation both in the house and senate where they basically talked about having a vote and they had to pull back. we sensible reason is because john mccain has had to have some surgery and will be out recovering. that kind of the lies a broader problem which means -- which is mitch mcconnell doesn't have all the votes locked down that he needs. in some ways it provides mcconnell some cover for extra time to try and rally support for the legislation while mccain recovers and then we will see what happens. nejra: we are expecting to get that congressional budget office estimate. today, that is not going to calm now. kathleen: every time they go back to the drawing board and try to make more revisions which they've done a number of times. congressional budget office has to go back and score and decide what the implications are for folks in terms of insu

. >> joining us now, kathleen clark, professor of law at washington university in st. louis.one of the country a leading experts on ethical stands for government officials. also joining us by phone, david from, senior editor for the atlantic. >> kathleen, your reaction to walter schaub a resignation. it's a five-year appointment by the president and it's meant to extend beyond one term of the presidency. so he was going to be leaving in six months. what does it mean to you that he's leaving six months earlier? >> well, it's a shame that he decided he could serve the public better by leaving the government. so it's a great loss for the public. but walter schaub has done a terrific job as the director of the office of government ethics and has really shown extraordinary leadership in the last year or so. >> and david frum, historically, the office of government ethics power comes not so much from its ability on the enforcement side, which it wasn't really designed to do, but it's supposed to be one of those agencies where everyone wants the stamp of approval of the office of go

kathleen, i want to start with you. how serious is this?e amount of diplomatic staff in russia as russia has in washington. is it such a big deal? i think it is a bigger deal in terms of the trading back-and-forth of sort of posturing and positioning when it comes to the different policies the u.s. has towards russia. for instance, i thought it was interesting what putin had to say about the retaliation. he said he hoped there would not be the need for more retaliation, which is a thinly veiled suggestion that there could or would be if the u.s. would take additional action. it is more interesting, the rhetoric in the posturing, the necessarily the specific policy implications thus far. matt: i do not think it is failed at all. at all.d let's ask tell u.s. diplomats are seen in moscow. the u.s. media just kind of assumes that any russian diplomats are spies, basically kgb. isn't the same vice versa -- is it the same vice versa? reporter: u.s. diplomats serving in moscow are certainly under a lot of surveillance. they are heavily monitored.

yvonne: kathleen, thank you. in a moment. 2% inflation will take longer than thought. some say the economy is finally on the mend. betty: and later, bitcoins barriers to survival. why optimism could be overrated. this is bloomberg. ♪ ♪ yvonne: good morning, this is "daybreak: asia." let's do a quick check of the business headlines. there was a surprise loss in the previous quarter, held by a surge of passenger numbers and a recovery in cargo. in june,ed a profit delivering overall net income of $173 million. they had expected a loss. shares tumbled after revenue from its operating business will decline further. prophet was well above estimates, but revenue is $7.7 billion, which is down percent -- -- which is down. it comes down to whether it will reduce costs and future and we will continue to modernize the bank. keep of the investment, because we need to move on with the modernization program. a bit of a mixed picture, but we have focused on cost. now we need to focus on revenue. first-order profits fell after

to kathleen from ohio. you are part of the affordable care act? caller: i take care of my 89-year-old mother. full-time,ree year prior to that, part-time. she worked 47 years and paid into the medicare system. she had been on traditional medicare with the united net -- covering what medicare did not. about three or four years ago, an agent came in and provided her with you services. they switched her to medicare/medicaid in ohio, which has aeve works -- monopoly on privatizing the medicaid. we go to the doctor now, havetly, she needed to april digest look at her tell -- dive a digest --a po -- podiastrist. they did not take medicaid. she paid into -- it for years. why do doctors not take medicaid? thought i would have to take her to an emergency room to deal with this. i have been exposed to nursing homes. he was in a nursing home. they paid into the system all of their lives. once they went through their -- why, withgh the private to profit nursing homes, the last one she was in was $10,000 of that per unit per bed. he is a world war ii veteran.

kathleen: i am not surprised.learn recently that gary cohn, former president and ceo of goldman sachs, now head of the national economic council, which makes him the chief advisor to donald trump, was considered the front runner. in an interview with the wall street journal, donald trump said the other contender was janet yellen. some are wondering if the donald trump might take a look at her track record, her caution on raising rates, concerns about the labor market. he does have a reason to think about it, re-appointing her when her term is up in 2018. we are the middle of a two-day meeting. no rate change is forecasted. it is the balance sheet in forecast. why no rate change? let's take a look at g #btv 7564 . key measures are running at 1.4% with a target of 2%. plateaued above 2.6%, 2.5%, 2.4%. they have a flattened out, even though employment is falling. the phillips curve is flat, maybe even broken. that is why a lot of traders are saying, no interest-rate increase expected until march of next year. still t

delaware state police issuing a gold alert for kathleen august. this is picture of her.nd blue eyes. officials say there is a real concern for her safety and welfare and in another missing person's case authorities are looking for a teenager from bucks county. newtown police say jimmy tar patrick has now been seen or heard from since wednesday. he is in his late teens, 5-foot ten, about 150 pounds. if you see either kathleen or jimmy or know where they might be, please contact police. >>> in southern california, 90 children and 50 counselors were rescued from wildfire. campers found shelter shortly after the fire started early yesterday. on the other side of the state. at least ten structures were destroyed by a wildfire near the oregon state line. both wildfires are 10% contained. this time of year authorities say it is especially tough to get hold of fierce because equipment and manpower are pulled in several directions all at once. >>> and 2us bombers carrying out a show of force friday flying over the korean dee militarized zone. this just days after north korea test

kathleen, thank you.hen it comes to hedge funds, we are seeing hedge funds overall losing some of that momentum. first, losing month of the year, event driven. let us bring in bloomberg's investing reporter ivan levinsohn. good to see you. we have kind of hit a wall in june. how can earning is this ivan: thanks so much that -- how concerning is this? ivan: thank you for having me. comparing the first six month of 2017 the past performance, it is the best since 2014. the pricet is about for the industry that has been regaining its footing since the financial crisis and has been seeing solid returns. anchor: it has been struggling. i know, this industry, indeed. challenges they are facing physically in this industry, i have been -- ivan: yes, so the bad news in this month report from hedge fund research was they saw declines in returns, and microstrategy's really did poorly this month. also for the first six month of this year, microstrategy funds in june, and6% that overall for the year, they are down .25%

kathleen brooks from city index is here.the minute but first let's talk about is opening up of the bond market in china. how significant is this? certainly it is a step towards financial normalisation, i suppose. china's bond markets or trillion. it is no small chunk of change —— they are multitrillion. it is interesting because some fund managers that might hold off, the met control our pension funds, for example, and they could start investing in bonds in china for the first time. haven't they been a bit worried about debt in china for the last year and so?l good point. this concern about the debt bubble. however opening things up debt bubble. however opening things up to the debt markets can sometimes allow more scrutiny. fund managers have strong vetting process in place before they invest. so companies that are not perhaps selling the best kind of debt, supply and demand will mean people will not buy it. let's talk about what has been happening today. we have seen european markets rise slightly. the financial is not doi

kathleen, with a welcome to you.eting be connected to the bigger picture of how the trump campaign and the administration has handled the russian investigation? >> yes, it can. in fact, what the e-mails and the meeting indicate is that when presented with information that could be useful to the campaign from the russian government, at least they -- donald trump jr. indicated enthusiasm and suggested, you know, specific timing for when that information could be disclosed to the advantage of the campaign. and then, you know, asserted numerous times that there was no collusion at all between the trump canmpaign and russia whic i believe was false. >> do you believe trump jr. or kushner or manafort in legal jeopardy? >> it's possible. it's certainly evidence of possible illegality and even criminality. because u.s. election law prohibits foreigners from providing anything of value to a u.s. campaign. and the e-mail that donald trump jr. received from goldstone was offering specifically explicitly offering documents and o

former health and human services secretary kathleen sebelius will join us with her take and why she callseffort quote a very cruel war on the poor. manait's a series of is nsmart choices. and when you replace one meal or snack a day with glucerna made with carbsteady to help minimize blood sugar spikes you can really feel it. glucerna. everyday progress. briathe customer app willw if be live monday. can we at least analyze customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. >>> welcome back. republican lawmakers in the senate vow to continue their fight to rep

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go to kathleen from riverside, ohio. you're part of the affordable care act. >> i take care of my 89-year-old mother for the last three years full-time. prior to that part-time. again, she worked 47 years and paid into the medicare system. she had been on traditional medicare with united covering what medicare did not. but three or four years ago there providing her with few services. very few services. they switched her to medicare,/medicaid, buckeye and ohio which i believe works at k-6 has a monopoly on privatizing the medicaid. so, when we go to the dr. just recently seven months ago she needed to have a podiatrist look at her toe. and a toenail. it took me over commission should back and forth from colorado to ohio. her buckeye doesn't cover her in colorado. pod only if i take her to an emergency room. so in ohio every podiatrist i was calling did not take buckeye. do not take medicaid. summit question is, again, 89, paid into the system for 47 years. a partial medicaid, why did doctors not take medicaid? i got to t

[speaking simultaneously] kathleen: and how they are feeling about it.ok at my bloomberg. the yen is strengthening after the essentially by proxy of the defeat for the tokyo assembly. yen weakenedhe ahead of the numbers. now you are seeing just a slight strengthening after those numbers. stay with us for a moment because i want to bring back nicholas. we just heard kathleen with the numbers here this is quite important to get real-time business sentiment, how japanese companies think about the economy. what do you think really it means, off the back we saw of the defeat of prime minister abe's party? what does that tell you about were the economy is going and that all-important number, inflation? nicholas: what you just talked about tells me nothing. what you are talking about is proxy and the stock market sentiment, probably not the most important thing. the sentiment you talked about his basically history less noise. we are looking at the future, not backwards. what we really care about, what is good in the tankan survery, there is a wealth of informat

kathleen, thanks for joining us. within the context of the ongoing investigation into whether the trump campaign colluded with the russians in the election campaign, what does this actually prove? >> i think this is potentially a big turning point. until now, the trump campaign and officials and administration have been saying, we didn't have any contact with the russian. the story keeps changing bit by bit. with the release of these emails, we can see that as early as june of 2016, donald trump junior at least was aware there was some russian effort to help his father get elected. that is one of the things that is said in these emails. that is fairly significant. if you then take a look back at all the stories and statements have of the trump campaign and white house since then, some of them are hard to square. president,et the donald trump junior told us yesterday, wasn't aware of this meeting. >> correct, that is the current story for claim out of the white house. it seems like every time, there's this trip of new

kathleen hays is here. kathleen: he made it pretty clear on the campaign trail. he won the election. mid-june. he sees a new vision for korea's economy, a new vision for the way they grow, create jobs, create wealth. he talks about moving from an export-driven model, dominated by large corporations, big industrial groups, more towards creating jobs across all tears s ofociety -- all tier society, and supporting small and medium businesses. that is another thing he has been hitting pretty hard. that us take a look at a very specific chart to show everybody why this is so, so important. #btv 2477. 3.8%. that is what this white bar shows the. that is a nice, low unemployment rate overall. that is older workers. korean youth, 10.5. be more specific. how about people not quite 30? 10.6%. remember, young voters gave president moon a lot of support. they were a big part of him being elected. that message has resonated with them. we know that gdp has been growing pretty healthily, 2.9% in the first quarter. we will get the new gdp numbers on thursday. overall, growth is

kathleen: the question is, what can they do?he health care bill. it has become a disaster for them. they talked about it being something that would be easy. the health -- the president came out and famously said "health care is kind of complicated." straight repeal isn't really an option. they are in a catch 22. and moving onto the next thing. what is telling is that health care was supposed to be easy. tax reform will be exponentially harder. if they could not the bipartisan consensus together, even getting all the republicans they would need and their ducks in a row on the republican side, will be extremely difficult. francine: a little bit of movement on dollar. will getts that we less reforms than we were hoping. will it away on the markets, or is everything priced in? peter: at the end of the day for markets, everything is about .nflation or lack thereof shortly coming out of the election, the expectation was you would get the reforms through relatively quickly and easily. that is not happening, inflation expectations in th

a lot of people in the world don't know kathleen gifford he see it well that woman with that act they out comedienne who did the trial heard oh yeah well i'm sure. this is no restart you got to keep on going oh ok well then yeah that woman. that's who he really is and dear mowlam yeah he's holding he's holding the economy ahead and rush all fire him we should say exit stage left to decapitate the commies holding the bloody head of it and face himself all right well we got to go to the second half this first half is that it's over but we'll be back reborn in the second half so don't go away. here's what people have been saying about rejected and that it was actually just pull on awesome the only show i go out of my way to launch you know really what it is that really packs a punch at least yampa is the john oliver of r t america is doing the same we are apparently better than booth doesn't. see people you've never heard of redacted the next president of the world bank very. seriously sent us an e-mail. i've observed events of the past few years and asked myself several times what's goi

gifford is really who warren buffett is who has a lot of people in the world who kathleen gifford as he see it well that woman with that act they out comedienne who did the trump head yeah well i'm sorry i think this is a restart you got to keep on going oh ok. well yeah that woman. that's who he really is and. yeah he's holding he's holding the economy head and rationale fire him we should say exit stage left decapitation the commies holding a bloody head of it and face him stuff all right well we got to go to the second this first half is that it's over but we'll be back reborn in the second half don't go away. by the observed events of the past few years and ask myself several times what's going on in my native germany. really is of refugees. u.s. intelligence agencies indiscriminately listening in on german citizens of the government. and once again. exhibit east. politicians from various political parties and various independent experts and journalists in an effort to understand just how independent germany really is when it comes to decision making. whether it acts on its own n

kathleen, what about from the interview that trump junior gave to fox.y of this information, see you can't collude on an offer. and that he was doing opposition research. what both sides to opposition research and certainly before all this news came out, even talk to the russians? is aeen: absolutely, there difference between opposition research and working with a foreign agent. mark warner in the segment you aired made that point pretty eloquently. thatnalogy i have heard is donald trump junior seems to be arguing that because the meeting didn't yield any negative information that he didn't collude. i feel like one of the act analogies i have seen made is that if you were to still someone's purse and discover the person is empty, doesn't mean it isn't stolen. that is a good way of thinking about this, that trump's defense and the trump team's defense doesn't really change the fact that trump went into the meeting thinking he was going to get negative information from the russian government about hillary clinton. pursealthough in the analogy, you have st

think cap -- they keep kathleen hays. -- thank you kathleen hays.our and bloomberg anywhere app. you can customize your settings. this is bloomberg. ♪ yvonne: this is "daybreak: asia." betty: a quick check of the latest headlines. .utting fees on 14 products stock and bond index mutual funds in the sector are now cheaper. it has been challenged recently by a growing number of rivals matching are undercutting its prices. the only price reduction starts august 1 -- fidelity price reduction starts august 1. yvonne: shares have surged after "spider-man homecoming." sony pictures tv is spending budget $43 million on a 95% stake in animate distributor funimation. buying script networks. they can leverage their programming to ensure inclusion in online tv services. channels have been striking as consumers drop subscriptions in favor of streaming video services. almost it for us here on "daybreak: asia." we did see the official numbers. we are still seeing some substantial -- rishaad: there are seeing a little bit of depletion. that is something that will b

manus: thank you very much, kathleen hays in tokyo.et's get to our guest, chief economist at japan's macro advisers. thank you so much for joining us this morning. target,in the inflation probably until march 2019. what does that do to the credibility? time he would delay and extend and pretend. what do you make of this extension? i guess he must be regretting that he made the promise of a 2% inflation target in two years time. having said that, the last four years, do believe the japanese economy is growing strong. there is a labor shortage everywhere. i have a sympathy to the governor on this point. anna: you point to the upside, but let's focus on the thing he has promised to achieve and has struggled to come and that is around inflation. what is the risk with the current strategy that after he starts to heaven adverse impact on the government bond market, that he is forced to change his policy? >> right. there are a number of areas. it's pretty bad timing. i think it would be best if the government delayed it again. another more im

joining me is kathleen clark specializing in legal ethics.een, initial reactions to that tweet, rhetoric and langua we're hearing from the president. >> it sure likes the president is attempting to undermine justice department, attorney general in an attempt to protect himself and associates. >> would you encourage continued tweets of this nature? i would think not. >> i wouldn't, but i don't think the president takes advice from the likes of me or the likes of anyone. >> what's hpg on capitol hill. we're talking about that statement from jared kushner, 11 pages previewing what he's expected to tell senate intelligence committee and likely the house tomorrow. pointed out earlier they thought that back channel discussion, denial of back channel communications, the denial he did ask for some sort of comes channel seemed to stand out the most. >> i'm impressed with that, impressed as in -- >> area of vulnerability. >> the justice department's order it with mr. mueller gives contact with contacts with the campaign, that's broad in scope. i believ