we raised to the middle class in mexico. in the south of mexico we have 62 communities. there whittington several years ago, for opportunity. for instance, their health system is the worst in the country. educational system is not working, and the most important part, they used to think they could wait for a new situation in the next 30 or 40 years. nothing acceptable about that. that used to be when mexico signed an agreement in the '90s. and never happened. we need to open another process to give them an opportunity. access to internet, the third of all is how can we force to give the economy grow. we need to add value to our economy, we need innovation, we need to solve all problems, we need to use tools also, new ideas in order to increase our capacity to our value. is that possible, sure. but we need to do more than just wait, with defined solutions for the markets, we will debate, it's more about what if we hav investment money together, and the same future of the country in a prohibition about innovation and energy. we have an idea that mexico can grow faster than

let me explain why it is important to mexico. , these mexico corruption intimate link to the privilegedssignedll the systems by privilege. elections, 2000, 2012, and other years. we have different parties govern the country. we have the same privileged system. it is really interesting, mexico we expected in when we have free elections and change between parties that corruption would be reduced in the first years, but that didn't happen. so, corruption is about privilege. reason thatain explains why mexico can have the , it is law that we want the first step to force the economy and accelerate innovation in the country and make a more competitive country. corruption is the first goal for mexico for those reasons. goal, is not just another it is the most important one. explains why the people choose -- povertynd goal is about . let me say in other words it is the idea that it is going to have50 or 60 years the opportunity to be the middle class in our country. 52 million people in poverty. same trendsain the in the country, they are going to spend more than four years in toer to have the

let me explain why it is important in mexico, because in mexico, corruption is intimately linked to the privileged system. by system is the same privilege. we have free elections several 2012, other000, years. partiesdifferent governing the country, but we have the same privileged system. is really interesting, because we expected in mexico that women have free elections and change between parties, the corruption would be reduced in the first years. that didn't happen. so corruption is about privilege, inequality. reason that explains why in mexico we don't have the rule of law that we want, it is a first step in order to foster the economy, accelerate the innovation of the country, and make a more competitive country. corruption is the first goal for this government for those reasons. in mexico, it is not just gaol.er oal. it is the most important one. this goal explains why the people choose lopez obrador. is aboutd goal poverty. let me say it in other words. it is about dissatisfaction about poverty and the idea that it is going to take maybe 50 or generations, in order to have the o

mexico with the new president? i'm sure he wants to prove his strength there. >> well, first, this does nothing to help the immigration issue. secondly, you know, mexico's been quite restrained. the new president has not said anything terribly negative about the president talking about the wall, the immigration coming in, mexico not doing enough. he's been restrained but now, you know, his back is against the wall mexico is going to have to retaliate if we pursue this foolish policy and it's going to affect our economy, it's going to affect the border mexico is going to put sanctions on our products too and what's going to happen with the mexico agreement? it has to be ratified by the mexican senate the president of the mexican senate and what if the mexican senate says we have to start striking back at the united states we've been rather restrained in these insults that president trump has sent us, this policy he's sending, he's defying us. so i don't understand this strategy and it helps nothing with immigration,

and mexico.ing about the risk factor of mexico, a lot of people thought that had gone away. usmca, not ratified by congress, but has been negotiated. also looking at the company that would be affected by this. automakers, transporters affected. kansas city southern down the most since december. mexico generates about 48% of their revenue. some companies really exposed that way. david: auto parts you would expect given what is going on with the u.s. and mexico. are there any save par verse year? ?- safe harbors here exposedu may have those to mexico and those that are exposed to china. we are talking about very large global markets. of course, the usual havens. gold is doing better today. david: and bonds. many thanks to emma chandra. tonight, catch the full interview with the huawei founder and ceo, "huawei: connected and contested." live from new york, this is bloomberg. ♪ jonathan: from new york city, i'm jonathan ferro. yield" startsl right now. coming up, fresh trade tension providing even mo

in mexico city where officials are scrambling to teadeal with the mexico surprise. president trump threatening tariffs in a bid to control illegal immigration. stock futures are deep in the red dow futures are down 236 points, and of course as we have noted. futures at this hour have tended to understate recent market moves. now we're weak across the board, and all this coming in an already weak and declining stock market may has been the worst month of the year, the worst month since december buyers as they sell here are flocking into bonds yet again, and the yield on the ten-year treasury note, wow, all the way down to 2.56%. we're seeing the five-year go under 2% as well that is the lowest level from the ten-year in just about two year's time. stocks in mexico are likely to take this move politically hard. our trade with mexico is far larger than trade with china the big u.s. etf to watch is that, it is the eww down 7.5% right now in the premarket you also need to watch currencies, the mexican peso u.s. dollar relationship that is an inverse relationship, so that

and mexico.stocks now >> right now it would seem late to sell them at this point they already have taken a hit and they have been -- they have shown weakness on a number of lines. we would have to think this, that this is likely leading to a crescendo. there is not a heck of a lot more you can do it becoming -- administration is becoming a one trick pony in terms of its approach to settling the trade dispute. it is by raising another tariff. the market doesn't like it, it is very clear that it is stating that the amazing thing we have to say is that the market is as off as little as it has been since the first tweet on may -- may 5th as i recall and the irony is on april 30th, we were at record highs in the s&p 500. we drifted, what, we're down 6% from those highs at this point, and adding greater percentage lower now. we have to think this is ultimately is resolved, it has been pointed out not only on this desk, but by other commentators, this costs the american consumer, there is an election co

avocados for mexico.loomberg. ♪ lisa: a threat is rippling through a wide range of industries including the avocado market. we have spent more time talking about avocados today than we have in a year. a california-based company has plants in mexico, four of them and 20 in the u.s. just talk about how great it is that we have an avocado stock? go long on avocados. in fairness, they dominate the production to such a degree that there are outside fx there, sort of like tequila or tomatoes. romaine: we had a lot of other stocks fall today because we did have -- we do have a big manufacturing footprint down there including lighting and industrial companies. basically, half of the plants are in mexico. you have learned and others and gopro or contractor. -- or contour which just that they were moving away from mexico into latin america and china. joe: the difference is that the vast majority of people have never heard of these brands so it may not have the residence in pop culture that an avocado does. lisa: i'

mca and that's a plan that keeps people in mexico because it raises wages in mexico. it's not a plan actually that increases corporate profits, so trump has a good plan. we don't want to mess that up because that's going to do more. the actual policing in mexico which is crooked is never going to actually do a whole lot to keep people out more than they are already doing. >> from a market standpoint, david i'm confused and baffled by this whole thing. you lift the steel and aluminum tariffs in preparation for the passage of u.s. mca. the markets like that and they say the president is really going to focus on china and take that on and be really solid about it and fix some of the other problems we're having with our trade issues and then you go and threaten to potentially put this tariff on, which would impact a lot of the same goods. that's why the autos were down today because of steel and aluminum, so the market was down substantially today it was the worst may that we've had since 2010, it was a bad month. you saw the nasdac down 8% the dow is down 6.5% and invest

mexico has to help the u.s. or they'll pay a very heavy price. >> we're asking mexico to enforce their own laws to help stop the people coming in from central america. we've seen a massive influx of people coming in from that region. they have the ability and the legal authority in which to deal with it. we're asking them to do that. >> as for mexico's president, he has a strong take on this as well. he almost appears to be questioning the validity of national sovereignty. he says president trump says social problems are not resolved with taxes or coercive measures. he says the statue of liberty is not an empty symbol. the slogan america first is a fallacy. even until the end of time, justice and universal fraternity will prevail above national borders. wow! on capitol hill, a bitter push back from republicans. joni ernst, from iowa, saying this. it's clear that we need to address the unprecedented flow of immigrants and it's imperative that mexico do their part to stop the stream of these migrants. that being s

we enter mexico. when you go into mexico, the mexican authorities were telling us, this is coming from them, they said they tell us, as long as you're going through and not staying here and your intentions to go to the united states, about ahead and continue. mexican authority would hand pick some individuals, say certain one of we have to take in and we have to deport. connell: should we have better metric, seems like we didn't put a number on it, maybe that is on purpose but should we put a number on all of this? this particular report i cited, mexican government would use something like that. we're deporting more people to central american countries than the united states is. you could skew the data anyway you want, because more people are coming through mexico, i get that. should we put a number from our side, listen, here is the number we need to see from you guys. you are hear. need to be here. what do we need to see from them? >> i think it is obvious you said it best right now. you can mess wi

unless mexico secures side of our border. in stops illegal immigrants in mexico no matter their national origin and stop altogether the influx of illegals and america. so how has mexico and its government responded their foreign minister is on his way to washington d.c. obviously seeking talks on the issue. the reaction of corporate america was swift. the business media, wall street, the radical dems all howling in protest of tariffs. the chamber of commerce going so far as to try and trump. our number one goal is to make sure the tariffs don't go into effect. we're trying to persuade the white house not to pursue this. at the same time, we're exploring what legal actions we have. and there are legislative actions on capitol hill. >> the chamber of horrors, it's called with the audacity, audacity to take it's part in working against the national interest of the truly elected president of the u.s. chamber of commerce, institution of incredible arrogance and ignorance. the republican establishment spent the president would do e

dagen: it is, you talk about avocados largely come from mÉxico. >> mÉxico. it's produce, it also hurt hurt exports from our farmers who have been hammered by the fight that we've gotten into with china and the supply chain for automobile manufacturers incredibly complicated between mÉxico and the united states and it just simply disrupts business, jonas, makes it harder to operate and create jobs, does it not? >> it's not that trump is wrong and they should be doing more so we don't have to, but that doesn't necessarily mean, look, avocado point, the mexican government can't keep the mob out of the avocado people and can't people across the border nor our military that are less corrupt than police. dagen: mÉxico deported more central americans this year than the united states have, so they are trying to do something to prevent the flow of illegal immigrants into the u.s. turning to vice president mike pence, he sat down with exclusive interview in ottawa, canada yesterday moments after joint conference with canadian prime minister justin trudeau where vice p

mexico say okay, don't have to let them into america. push them back into mexico.xico did that, said that, there would be no tariffs. it is easier for them to get around it, isn't it? >> well, let's start by saying could be the tipping point of u.s.-mexico relationship, because the pain will be on both sides. there is a lot of worry here in mexico by these actions. it is not as simple as you mentioned, stuart. stopping this flow of central american people through mexico is a challenge. i think that the mexican government has tried to address it. obviously here you have another populist government as well as in the u.s. mr. lopez obrador is concerned about human rights elements on his action but i think at this moment, you know, a lot of action needs to be done on both places. stuart: gaston, it would not take much to satisfy president trump, that mexico's government is trying to do something. it wouldn't take that much you know. >> well i think that the government is doing -- the border is an issue. there is lot of leaking in that border. obviously there is a lot o

caravans from mexico.ming from in africa, cubans coming in, people from venezuela coming in. mexico has mexico has basically border intervention between us and them, their southern border. doing nothing effectively to stop this. this is real crisis, humanitarian. we're dealing with that. charles: president trump's tweets were ambiguous what exactly would be the benchmarks. what does the white house need to see from mexico to say we know you're doing a lot more? a few months ago it felt like mexico was stepping up to the plate but apparently that was short-livedded. >> that was short termer. they sent 300 illegal crossers home. what i would like to see, the president didn't iterate this clearly, but what i would like to see, mexico immediately adopt a safe safe state policy. if you're coming from congo, venezuela, cuba, or the northern triangle, the first safe state for asylum is in mexico itself. mexico can keep them there while they apply pour asylum into the united states. people should apply in the home

and mexico. look at the number of imports and how much it's grown over the last five or six years in terms of vehicles coming into the u.s. from plants in mexico. almost 2.7 million last year and in terms of automakers this year and how many they've imported from mexico, gm leads by far more than a quarter million. but you see also a sizable presence from fiat chrysler nissan and volkswagen and that's why when you take a look at shares of the auto sector today, three in particular stand out. we're talking about gm, fiat chrysler and nissan. they have the most production in mexico in terms of vehicles built there and then shipped back to the u.s. >> how does the mexico announcement impact america's global trading relationships overall? kayla tausche has that breakdown in washington. kayla. >> reporter: well, sara, the relationship with mexico appears to remain intact its president today with a measured response saying it intends to move forward with the ratification of the usmca. and mexico's fore

announcedtrump's terrace on mexico -- tariffs on mexico. u.s.limping to the worst week in months while treasuries build on the rally. we have all that and more coming up. lisa: let's get a check on the markets. it has been an ugly day, although unclear to see how ugly we will end up. the russell 2000 i wanted to highlight because it has been underperforming the broader indexes which i think is interesting because it was more immune to trade wars. that was the idea earlier in the year. last year. not so much this month. scarlet: one argument could be smaller companies may not have as much ability to house on the cost -- pass on the cost to consumers. people say they are more expensive than the big caps. lisa: gold having its best day since january 25. copper lowest since january 3. lowestar yields at the level since 2016. scarlet: we keep saying five basis points every day but it keeps grinding lower. let's take a closer look at the action with our reporters. abigail, get us started. abigail: let's look at the railroads. this sector of the s&p 50

into mexico. we are at the new york stock exchange with all the action. >> the president is now going forward with trent to get mexico to fix the flow of immigrants, illegal immigrants coming to this of the border. the chief of staff says this menstruation asked congress for help and it did not help. they went on break instead. we hope we can get mexico to stop the flow of illegal immigrants. the tariffs have been imposed in stages, june 10 will be when the tariffs will be added to everything across the border. july 1 goes up to 10%, the 15th it goes up 50%, on august 1 topping out at 25% on october 1. the white house says these tariffs will not go in effect in what used to go forward with the alleys of the president and congress. the key republicans questioning this move. the trade policy and border security are separate issues. it's a misuse of presidential capability and a national content. some republican senators are saying this could put both for the u.s. mta ratification in jeopardy advice

al interior de mÉxico la cosa es seria.s, le fue muy mal. >> lo golpearon sacÁndole verdades. de quien Éramos. me enviaron fotografÍas mías y de compaÑeros. donde estamos en asamblea con personas para indicarles cÓmo era. >> dÍa despuÉs ulises también cayÓ en manos de la migración mexicana. recuerda quiÉn fue una de las lÍderes visibles harÁ en las primeras caravanas, el 3 de abril pasado denunciÓ que su casa y su vehÍculo en tijuana fueron incendiados por un sujeto no identificado. >> fe un atentado. y salÍan las llamas. >> eso no es todo, por estos dÍas ha hecho una pausa debe atender el negocio familiar de transporte turÍstico. y aÚn ahÍ, en el cruce entre mÉxico y arizona, dice, sufre represalias. >> lo que dicen ellos es que estamos en esta famosa lista. >> permanecimos como observadores . le enviaron hace una inspecciÓn y ahÍ permaneciÓ casi dos horas. mujica asegura estar siendo monitoreado por la agencia de aduanasy protecciÓn fronteriza. >> casi una hora despuÉs. >> quÉ te preguntan? >> quÉ es lo que piensas polÍti

we want to work with mexico. that's why the president has been asking for months for mexico to engage, to step up to do more. we're going to build the wall, secure or border, and the president is going to do what's necessary to protect the american people. >> what have they said about the subject in the past? >> we have been giving advanced warning for months. we have asked them repeatedly and told them, they have to do more. let's not forget that the average individual that crosses over the southern border of mexico, it takes 21 days before they reach the united states border. that gives them three weeks in which to break up particularly these large groups. just this week, we had over 1,000 people that moved as a massive group through mexico and came to our border untouched. they could have easily broken up this group, arrested them or sent them back home, and they didn't do anything. we're asking mexico to enforce their own laws, to help stop the people coming in from central america. we have seen a massive inf

we have low growth in mexico here as it is. mexico could go below 1% this year. you kick off a tier four trade more, and mexico could hit a recession. directly,mpact mexico close to 80% of trade with the u.s.. and companiescts are the ones taking the biggest hit on the stock arc it. vonnie: -- stock market. vonnie: why is the community so surprised? president trump is always going to play hardball. so is the market reacting negatively and so immediately? sarah: previous tariffs while they seem dramatic were well telegraphed. this move against exit call -- usmca is against the which they were trying to advance to congress. even if you get it to u.s. congress, it won't take effect until all the country sign it and there is the prospect that if mexico may not sign the deal and except tariffs on goods for a different reason. iscame out of nowhere and it the mixing of the trade policy with tariffs and the immigration policy with tariffs, which is a different issue. that mixing is at a whole new level in trump rosie trade war's -- trump's trade war's. vonnie: thank you

if the ploy works and he gets mexico, the president gets mexico to crack down on those people coming across the country illegally, then it will be a big success. if we end in a trade war as we have with china, not so good. >> shepard: of course, nothing has happened. it's talk, talk only unless and until that changes. but the effect of this, whether for the good or bad or by design or not is that the discussion from two days ago, the mueller report is sidelined and it's about tariffs, this is a president that is very good about narrative and the narrative has changed. >> no question about it. the president at times as you point out, chooses to create one controversy to distract from another controversy. i have to say, this is quite a controversy. the stock market going down 300 points. you know, you have republican senators and some conservative pro republican business groups and companies all crying out about it, it's a pretty damaging bright shiny object. >> shepard: and when the chamber of commerce weighs in, in the past, historically over my 20, 30 years, republicans tend to list

it happened in mexico. trump says it's down to immigration as the main reason but there must be there's also it's ties in very much with his protectionist mode with his stance that he takes on these things so i think it was kind of inevitable at some point that it would be political would also translate into economic measures now only of course we see the united states there in trade conflicts with mexico with china of course what's europe the financial world and europe making of all this. well what clever just said the economical trade issue morphing into the political that really raised eyebrows here it's kind of a new dimension and condiments to talk to says that will probably stay that way it will probably stay true trumps policy until the economy goes downhill and perhaps the market as well weathered and he can rescue those things so to speak with a deal in time for the presidential election 2020 but it surely put the markets into a shock mode chairs tumbling chairs like volkswagen and fee at fry's are

were mexico's foreign minister as had 1st been all rob lowe joins us live from mexico city metro what is the reaction been there in mexico in official dialogue has yet to take place between officials in mexico and in the united states until now all of the dialogue that we've heard has taken place mainly on social media fully those statements on on thursday evening by president trump those threats to impose tariffs on mexico there was a letter sent via twitter by mexican president lopez obrador calling for a renewed dialogue we once again heard from president obama there during a morning press conference on friday take a listen. sit on the side of i believe this measure will be further analyzed by the united states government i believe that president trump will understand that this is not the way to solve things i think that there will be a correction if not right away at some point because these measures are neither in the interest of mexicans nor united states citizens us and at the moment the mexican foreign minister marcello dodd is on his way to washington d.c. to continue that di

how will mexico really —— react? hip, policy by tweet. how will mexico really -- react?l nations to be more nationalistic. you start looking after your own voters rather than looking at cross—border rates. inevitably, we will see further reactions from mexico going forward. you wrote about the three years ago and almost predicted this was going to happen before president trump came to power. what's feeding it? we have had a stagnation in productivity and that has led to modest wage growth. people are voting against the status quo for change was up they don't know what's right but they just change was up they don't know what's right but theyjust don't change was up they don't know what's right but they just don't want the current position to carry on so we are entering a period where politicians can announce these things and data further support. politicians can announce these things and data further supportm america going to be able to withstand this assault on all sides? is there going to be a trade war with china, they are in the midst of it, there is an impasse, there

but to mexico will respond if the u.s. imposes tariffs -- mexico will respond if the u.s.iffs. the president seems to be hardening his trade stances. they could be threatening to not share intelligence with the u.k. if the u.k. does not ban while away from their 5g networks -- huawei from their 5g networks. mark: i don't want to speculate. there is three layers of impact. this is why it will be so painful. we are going to prices in over the days ahead. -- price this in over the days ahead. there is the direct impact with the two countries involved, mexico and the u.s. please apply trade is one of the most liquid markets -- the supp ly trade is one of the most liquid markets. trump is willing to risk a severe deterioration in the equity markets. that was one of the things that traders were still clinging on to. this is sending the exact opposite message. is no reason why this fall in equities should stop anytime soon. paul: the rationale from the white house was the immigration crisis at the southern border. is there more to this? mark: i don't want to get too far down the

to mexico.ry much. >>> senator elizabeth warren says that if donald trump were not president he would be in handcuffs and if elected she has a plan that would allow unlike today sitting presidents to be indicted for crimes. that's coming up. well, here's to first dates! you look amazing. and you look amazingly comfortable. when your v-neck looks more like a u-neck... that's when you know, it's half-washed. try downy fabric conditioner. unlike detergent alone, downy helps prevent stretching by conditioning and smoothing fibers, so clothes look newer, longer. downy and it's done. this is not just a headache. this is not just a fever. this is not just the flu. it's meningitis b... and you're not there to help. while meningitis b is uncommon... once symptoms appear, they can progress quickly and can be fatal... sometimes within 24 hours. before you send your teen to college... make sure you help protect them. talk to your teen's doctor... about meningitis b vaccination. (vo) speed. the faster it goe

>> no doubt about it basically mexico and china compete. when mexico wins, china loses. when china win, mexico loses the one who won the most is president xi jinping xi jinping was under pressure in china because some of his teams were accusing him of having misjudged the united states in the trade negotiations so yesterday he could go back to the people and say china did not make any concessions to the united states and got the same result as mexico, so china won so yes, without a doubt yesterday was a great day for china. >> all right we'll leave it there gentlemen, michelle, thank you all very much. frls tunl e into "closing bell"t 4:00 for an interview with the head of mexico's trade and nafta office and here is what is still ahead on "the exchange" -- >>> coming up, a may to forget will this month's big downturn be a buying opportunity or are we setting up for more pain? plus with nearly 3 million autos imported from mexico to the u.s., investors are fleeing the sector today we'll look at what the potential new tariffs could mean for the industry and falling flat on

al interior de méxico la cosa es seria. trabajamos, quién éramos. a él le enseñaron fotografías tanto mías y de otros compañeros y videos de que habían sido tomados en la ciudad de veracruz sayula, donde estábamos en asamblea con las personas para indicarles cuál era el riesgo dependiendo de qué decisión tomaran. carmen: días después, ulyses también cayó en manos de la migración mexicana. ¿recuerda a irineo mujica, quien fue uno de los líderes visibles de las primeras caravanas? el 3 de abril pasado denunció que su casa y su vehículo en tijuana fueron incendiados por un sujeto aún no identificado. irineo: fue un atentado. o sea, definitivamente, me salían las llamas por-- carmen: eso no es todo. por estos días ha hecho una pausa en su activismo pues debe atender el negocio familiar de transporte turístico transfronterizo. y aún ahí, en el cruce entre sonoyta, méxico y lukeville, arizona, dice, sufre represalias. ¿por qué te detienen? ¿qué es lo que pasa? irineo: lo que dicen ellos es que por ejemplo que estamos en la lista-

imports from mexico.f these tariffs go into place going all the way up to 25%, these are the products that could get tariffed. it is our second largest supplier of goods, $346 billion. up 60% from 2008. u.s. imports from mexico account for 13.6% of overall u.s. imports. what we are talking about is vehicles. electrical machinery, mineral fuels, optical and medical instruments. why you are seeing a repeat is because a lot of products -- the parts of products that get made in united states get some of their products from mexico. then they are added here in the united states, especially car parts, sent back to mexico, sent back to the united states. you are seeing a repeat of exports and imports because these are the parts that go back and forth between our countries. mike in ohio, independent. good morning to you. caller: good morning, greta. that last guy from florida is a perfect example of why we are in trouble. we have legal immigration, not illegal immigration. legal immigration is when you come over a

and mexico. it's kind of crazy because when you think about it, mexico owns some of the biggest oil reserves in the world, yet they fail to produce enough really to supply their own people and yes, they do export oil to us, mainly so we can turn it into gasoline and sell it back to them. so if we are going to tariff, for example, the oil coming into this country, you know, we will sell it back to them, they are going to have to buy it back at a premium. i really don't think that's a major impact because it's going to go around in a circle. natural gas is another thing that we send a lot of that to mexico as well. i think what's going on with the oil is more about the fallout from the trade war situation and how it's going to slow the economy globally. that's what the market's pricing in. they are also pricing in that the trump administration seems to change their mind every five minutes. there's a lot of concern in the market that the trump administration is going to grant some type of waivers to

>> yescka: these are the most powerful people of mexico, people that is driving mexico. felipe calderón, the last president, and that guy is like the economy guy who is moving the economy in mexico. and this is the army. this is a prostitute. this is represented because they this is a prostitute. this is represented because they are like prostitutes, you know? >> anthony: right. and uh -- >> yescka: in middle this is the narco traffic. >> anthony: ah, the middle. >> yescka: so, yeah, he is like the god in mexico, you know? because he is like over -- >> anthony: all of it. >> yescka: yeah. >> anthony: so, this is the way mexico works? >> yescka: yeah. for me, the most problem in mexico is the corruption. >> anthony: mexico can be a dangerous place for journalists, for politicians, for police. is it a dangerous place for artists? >> yescka: yeah, i think so. yeah, because if you no agree with the government you're like enemy. what is that? uh mine, why? it's just that it's... lavender. yes it is, it's for men but i like the smell of it laughs ♪ - [narrator] do you remember

mexico will not take it lying down. all mexicans to be confident that we will overcome this behaviour from the us government. they will have to correct themselves because the mexican people do not deserve to be treated like this. all these trucks are crossing from mexico to the us. a few months ago, a few people hung their heads in horror when president trump threatened to shut this border. he could not and he did not. yet again, people living on either side of the border are asking the same questions. can he do it? will he do it? and if he does, what does it mean for me? ever—increasing tariffs mean they will pay more for products from fresh produce to machinery to cars. it will affect american consumers. for example, toyota tacomas from the north american continent are produced in tijuana. those go back and forth about four times for content and product so it is good cross—border trade. but those prices will go up 5% or 10%, ultimately 25% and the american consumer pays that, not the government. some here support thei

you have mexico now with more than four million vehicles being built in mexico. it is now the number six country in the world in terms of auto production that is not changing that's not changing any time soon >> phil lebeau, thank you. >> peter navarro joined us to discuss the president's decision to threaten tariffs on mexico saying investors in wall street should look at the move calmly take a listen. >> look at this calmly look at what we're trying to do. this is actually a brilliant move by the president to get mexico's attention, to get them to help us so far they've been standing by and they really have the power to help. the two institutions that had the power to help us is the mexican government and congress. >> with us now to break this down, former deputy assistant trade representative matt gold as well as global chief market strategist gentlemen, good morning to you both matt, i'll start with you. mexico, the u.s.'s second largest supplier of goods and imports. your reaction to the comments from peter navarro >> look, peter navarro wouldn't recognize a

what we trade with mexico and what we receive from mexico is a lot of what's called intermediate goodscts made from other stuff. we might get crude oil from mexico that gets molded into a dashboard that gets sent back there to get assembled and then sent back up to be put into a car. that's a massive distinction between that and what we do with china which is buy their final products. >> our very low employment rate is a feather the president wears in his cap, and he can. but steve, he's now claiming the tariffs will produce a massive return of jobs back to the united states. how and where would that happen? >> well, it's a little hard to figure out exactly how that happens. there's there's a couple of things that would happen before that. as with china, manufacturers could move to other countries. one of the ironies that's sinking into the "c" suite in companies this morning, they were going to move to mexico. i guess they're not moving to mexico now. we'll see if that happens. they were going to move to vietnam. so that's the first reaction that some companies would do. other compani

this time, mexico.ig threat as a result for republicans in the coming 2020 election? >> he just may be. especially if you ask chuck grassley. look, we don't have to tell our next guest how important jobs in manufacturing and the auto industry are to voters in his state. a critical one, by the way, in presidential elections. commentator, former republican governor of ohio, john kasich is with us. good morning, governor kasich. gosh, i mean, chuck grassley is upset. this could really heard the ag industry in his state. you have the result on car prices in this country that would come if he slaps these tariffs on mexico. i don't get it. do you? >> well, i don't know if he's serious about this. one minute, he says x, the next minute, he takes it back. one minute, he says he's not going to talk to nancy pelosi, the next minute he is. you have to follow the bouncing ball. i don't even think this is a bouncing ball you can follow. to say if mexico doesn't solve the immigration problem, something we haven't bee

they build ram trucks down in mexico again, high-value vehicles that come from plants in mexico intostocks, all of them under pressure overnight, not only because of mexico, but obviously what's going on with china nissan is one of these in here, even though it's unchanged today, a huge importer of vehicles from plants in mexico bottom line is this, guys -- the average vehicle right now, what you and i pay at a dealership when we go out, on average is about $34,000. you know it doesn't take much. 5% of $34,000, you're adding another $1,700 onto that vehicle, and that's just the average. we're not talking about people paying $45,000, $55,000 for a vehicle or a new pickup truck, so it could go substantially higher, and that's just at 5%. >> all right, phil you're right thanks let's talk to someone that we've talked to about tariffs before joining us with reaction on the new threat of tariffs on mexico is former commerce secretary under president obama, bill daley. and bill, we've talked about fair is foul, foul is fair we're not sure which side of the aisle is either for or against the

en noticias telemundo mediodÍa el drama que viven migranteiÑa migrante guatemalteca en ciudad de mÉxico mexico acababa de ser llevada desde el estado de chiguagua junto a su madre. >>> nueva victoria para dream dor una corte federal de virginia dictamina que fue ilegal la decisiÓn del presidente donald trump de regreso incendio ir daca y que fue algo arbitrario. >>aire, un aviÓn caza f-16 de la fuerza aÉrea se estrellÓ contra un almacÉn en california durante un vuelo el piloto habÍa reportado problemas en el y muy serÍa me . si me lo permite es mi problema. >>> reÍr siempre estÁ del moda franco lo mutr repletos, tiene el popular de mÉxico y hoy este comediante estÁ con nosotros desde monterrey nuevo leÓn. >>>♪ >>> (♪mÚsica♪). >>> ¿quÉ tal? muy buenas tardes cÓmo estÁn feliz viernes para todos ustedes le saluda felicidad aveleyra >>> vamos a comenzar con estas noticias la muerte de una niÑa de diez aÑos nacida en guatemala se suma a las de otros cuatro menores procedentes de mismo paÍs. que tambiÉn perdieron la vida estando bajo custodia de autoridades de inmigraciÓn, per esta vez ha sid

it was only last april when president from to close the us mexico border if if mexico didn't do more to stem the flow of migrants this may be one of the reasons why we're not hearing more of a response maybe one of the reasons why so many other officials haven't seemed to take the threat these were new threats very seriously and president trump is saying that mexico could be doing more to stem the flow of migrants but is this the case. it's interesting the president would say that mexico is not doing enough given that mix the mexican government has even departed from its own policies departed from its own mandate to provide more assistance under the new mexican administration to central american migrants they've increased the tensions at mexico's southern border with water malo they've. been forcing u.s. policy accepting central american asylum seekers back into mexico to await the asylum process here instead of providing that assistance that the mandate called for under the administration of of president lopez obrador as well as as departing away from talking about the president uni

but to put a fine point on what patrick is laying out and how mexico is responding, mexico's president, as patrick was alluding to, saying in their response, the statue of liberty is only an empty symbol. that coming from america's close ally and greatest number one trading partner today. patrick, thank you so much. let's talk about everything that patrick and kaitlan were laying out. what are we talking about when you're looking at tariffs on goods coming from mexico into the u.s.? it's a wide range and can impact almost everyone. christine romans is here. she's taken a closer look at all of it. what are we talking about? >> just about any kind of product you would use, quite frankly. we import so much from mexico. what do we buy? last year, almost $350 billion worth of goods. patrick is so right to point out vehicles. vehicles is a big part of that. cars and trucks and auto parts. and in fact, when you look at that number that shows $93 billion in imports, it's a little deceiving because some of the things we're bringing in from mexico started in the u.s. in the first place. by one e

the white house opening a new front in the trade war. >> new tariffs on mexico. >> mexico.ntive to negotiate a deal in good faith? >> the biggest issue is the

with the united states and for years mexico has not treated us fairly. we are now asserting our rights as a sovereign nation. the president added the u.s. has been invaded by hundreds of thousands of people coming through mexico as a result of lawless chaos. trump also claims that the, quote, sustained imposition of tariffs will produce a massive return of jobs back to american cities and towns because we are firmly and forcefully standing up for america's interests. the white house says the tariffs will rise monthly by 5% to as high as 25%, but would not say what it would take to remove or halt them, only saying, quote,

-mexico trade alone, about 40% come from mexico and mexico plays a crucial rose -- role in the regionalupply chain. auto are a lot of global companies in that supply chain. if you step back, there is a feeling that at the very least, it diminishes prospects for a near-term deal with china because clearly, president trump is in a hawkish stint with trade. a negotiatings as method and the trade tensions as recently as april that were dying down, are flaring back up again. is the likelihood that u.s. manufacturers are hit very hard here? how important is mexico in terms of the supply chain? enda: it is pretty crucial, especially in the auto supply chain. there is no doubt about it. global companies, components sourced around the world being fed into mexico. the initial threat is 5%. it could go up to 25%. that would be pretty material. the fear among many is once tariffs are implemented, they are hard to take off. we are seeing them with the china-u.s. trade negotiations and that is why there is concern about the impact it could have on economic activity, investment and sentiment if presid

border, the boot heel of new mexico, groups ranging to 400 in size. what hasn't change reasonable doubt the extreme risks of the migration cycle and the fact that the people who benefit from it most are criminal organizations. many come to the dangerous and dehumanizing system of stash houses. criminal who are not interested in their safety or humanity. thes of their journey result in 1,500 deaths a year in mexico and the u.s. border. last week a raft capsized, several were rescues but four died including a 10-month-old and a 5-year-old child. yesterday they found a mother and an infant wandering the desert. they were just a few hours away from succumbing to the almosts. migrants are paying them thousands of dollars to be treated this way. smugglers charge between $5,000 to $7,000 per person for the journey. the impact of these friends are severe and worsening. for the security of our borders from honduras to canada for lawful trade and travel, for our communities suffering from illicit drugs and criminals profiting from the most vulnerable. most fund

rick: we are a territory of mexico. much like the united states of america had a system in which territories can become states, mexico has a system in which territories can become states. a big issue is population. we don't have that level of population so we are a territory. we get to elect our governor? we don't elect our governor. the governor is sent to us but we have a local legislature. this is where we are. 1824 to 1846 is when the united states of america comes into take us over. so we basically have a 22 year period we are sort of focusing on. not a huge long period, but it is very important in the history of the united states of america and of mexico. they are both sort of flourishing and developing in north america. that is what i want to talk about. canadians, we don't care about canadians. they are monarchists or something up there. but there are really interesting things going on down here. i shouldn't say that. does canada watch c-span? i don't know. [laughter] erase that, to right? let's not get into can

tariffs on mexico. down over 1.5% and the dax seeing the b biggest declilinin plummeting almosost 2%. nonow for some of the business headlines for you at this hour. the bank of italy has warned the country's coalition government nott to wadede in saying the ri of higher spending must not be underestimated. it aligns itself with the european commission which had been at loggerheads with the italian g governmenent for mont trying to get it to reduce public spending and reduce its debt. almost a month after a disappointing debut on wall street, the firm boasted a $1 billion n loss for the first quarter. however revenue rose to $3.1 billion. the company says it's keeping its foot to the pedal, citing moves into electric scooters and aircraft. mark zuckerberg came out unscathed from facebook's share holders meeting. some investors voted for him to step down as chairman but the votes didn't pass because of zuckerberg himself. he holds over 60% of the board's voting power. the only way he will be overthrownwn

where mexico's foreign minister is headed for a spot or apple and joins us live from mexico city cement what is the but it's a reaction been there through reaction in mexico since the president made those statements those threats toward mexico of those tariffs if mexico is unable to stem the flow of migrants has been quite measured we've heard most of the dialogue take place via social media but i do want to play you a clip from president lopez of others presser early on friday morning take a listen. on the side of i believe this measure will be further analyzed by the united states government i believe that president trump will understand that this is not the way to solve things i think that there will be a correction if not right away at some point because these measures are neither in the interest of mexicans nor united states citizens us mexico's foreign minister marcello abroad is on his way to mexico now as we speak for a continuation of a dialogue both on trade as well as immigration one thing that does seem counterintuitive amidst this talk of a of a trade war brewing between th

that becomes a big issue for mexico. this is different from the united states of america, because they have decreed from very early on that federal land hat is not given up belongs to the federal government, the ation. it doesn't belong to the indians. in mexico and in spanish law, it did belong to the indians that we have got to figure out how to get it back to them because we have processes. education is a big issue, got to run a republic with education. we will talk a bit about this but this gives it -- island of the blue dolphins story, fast-changing pacific world, international issues, technological, all sorts of -- the opium war in china, what we talked about last time. there is a lot of stuff going on in the pacific. these are instabilities. in the midst of these, the united states of mexico is kind of charting its way through this. we are a territory of the united states of mexico, the sort of far north that is lagging in some ways but we have opportunities maybe they don't have in mexico city and stuff like that

sophie: but critics say mexico is trying, and the u.s.ing tariffs on a goods coming across the border will be counterproductive. , damage economies, in more people fleeing north. mexico will take itotined -- willake it lying down. >> i telall mexicans to be confident that we will overcome this behavior from the u.s. government. they will have to correct themselves, because the mexi' people don' deserve to be treated like this. sophie: all these trucks are crossing from mexico into the united states. a couple of months ago people hunger hasnver when president trump -- people hung their heads in horror when president trump threatened to shut the border coletely. he couldn't, and he did. but people are asking the same -- she couldn't come and he didn't. but people are asking the same questions. will he do it, and what will it mean for me? er-increasing tariffs wi mean they will pay more for products, from fresh produce to machinery to cars. >> it will affect american consumers. for instance, all the toyota tacomas from the north american con