mnuchin: mr. chairman, i have no process demands. from my standpoint, i am hopeful that we can work with both republicans and democrats. i know we've had the opportunity to work with your staff. i know that my staff is going to be sitting down with senator wyden's staff and your staff later in the week. and we are hopeful that we can find common ground, particularly on the issue of making our business taxes competitive. we have a system that is highly uncompetitive. we need to put our workers back to work. mr. hatch: mr. secretary, the president's budget envisioned increased economic growth that eventually reaches 3%. as i understand it, that vision relies on the implementation of a number of policies, including pro-growth tax reform, cutting unnecessary regulations, building infrastructure, reforming health care, boosting energy production, and reducing deficits that would significantly improve the supply side of the economy. of course it is not unheard of that an administration places belief in

mnuchin: no. not at all. there actually wasn't a reversal. senator warren: wasn't a reversal? mr. mnuchin: let me explain. the republican platform did have glass-steagall. we during the campaign and i had an opportunity to work with the president on this specifically came out and said we do support a 21st century glass-steagall. senator warren: yes. mr. mnuchin: that means there are aspects of it, ok, that we think may make sense. but we never said before that we supported a full separation of banks and -- senator warren: sorry. let me stop you right there, mr. secretary. mr. mnuchin: you are not letting me finish. senator warren: i am not because i really have to understand what you just said. there are aspects of glass-steagall that you support but not breaking up the banks and separating commercial banking from investment banking? what do you think glass-steagall was if that's not right at the heart of it? mr. mnuchin: again, i am well aware what glass-steagall was. as you know the original con

mnuchin: yes. senator scott: i want to thank chairman and ranking member brown who've both committed to solving this issue as well. so i think if we work as a committee, we can solve this, i think, discrepancy that is unusual and certainly not practical. thank you. >> thank you. senator tester. senator tester: thank you, mr. chairman and ranking member brown. and thank you for being here, secretary mnuchin. appreciate your presence at this hearing. senator moran and i have a community bank reg relief bill called the clear act. have you had a chance to take a look at that at all? mr. mnuchin: i have only looked at it briefly. senator tester: the reason i bring it up there are a number of democrats willing to work with you, and republicans, willing to work with you to try to get some common sense reg relief for community banks. if you could take a peek at that and get back to us, i would like that a lot. mr. mnuchin: i would be more than happy to do that. i can assure you one of the things that will

mnuchin: ok. first of all, let me say i'd be happy to get together with you and go over your ideas for your outsourcing. i can assure you that the president -- senator donnelly: the good part is i laid them out to the president and he assured me he was 100% behind them. mr. mnuchin: i will get together with you and we will go through them. the president is very concerned about jobs leaving this country. i think you know one of the main reasons why he wants to renegotiate nafta in the case of carrier and others, he personally picked up the phone and made calls. in all of my trips overseas, i have told my counterparts, we expect free and fair trade and better trade deals and for too long, american workers have been hurt by jobs leaving the country, whether it is because we have an uncompetitive tax system or bad trade deals. the president has talked about the concept of reciprocal deals and reciprocal taxes. >> i am about out of time, but i want to ask you about currency manipulation. for a long tim

secretary mnuchin: yes. we have a large group at treasury working on this. emphasize things i ahead of time was we wanted to make sure we reached out to different groups and got feedback that this wasn't something the treasury was designing on its own. i know certain people prefer to this is a review of dodd-frank. it is much broader than that. we have met with over 16 different groups. many of them having 50 to 100 people. we have had community banks, small and medium-sized banks, we have had working groups with each one of the independent regulators to make sure we have input from them, and we will issue a series of reports. the first on coming out shortly on banking. one of the big focuses, we will make sure as we have different regulators, we have proper coordination between them and this is something i have been working on at the stock, where i took my responsibility seriously. chairman: thank you, senator brown? senator brown: your nomination gush onon generate 19, january 19, you stated the bank you a

mnuchin: yes. senator scott: i want to tnk chairman and ranng member browwho've both committed to solving th issue as well. so i think if weork as a committee, we can solve isi ink, discrepancy that is unusl and certainly not actical. thanyo thank you. senar tester. thank you, mr. chairmannd ranking member brown. and thank you for being here, secretary mnuchin. apeciateour presence at this hearing. senator ran and i have a community ba r relief bill caedhe clear act. ve you had chance to take a look at that at all? mrmnhin: i have only looked at it briefly. senatotester: the reason i bring uthere e a number of democrats wilng to work with you, and publicans, willing to work wi y ttry to get some common sen r reliefor community banks. if youould te a peek at that and get ba to us, i would like that a lot. mr. mnuchin: iould be more than happy to do that. i can assure you one of the in that will be in the repo to the president is relieforommunity banks. senator test:ha you. there's a bill o tre calle

mnuchin: i do. i've spent a lot of time looking at this and i'm concerned that without more members on it, they can only make loans up to $10 million. the board should look at credit risk and everything else. the xm bank is an important tool. the president has proposed adding new members. >> one of the great fears we have is that the suggestion of the leadership of the xm bank going to former representatives scott garrett who isn't just a critic of the bank and a reformer, i think he's someone uldare very concerned wo not advance the interest of the bank and doesn't believe in the mission of the bank. do i have your commitment to work on a bipartisan basis to leadership in the bank that would make for the bank is fully functioning and that these credits are actually coming before the board for up or down approval? sec. mnuchin: i want to make sure i understand your question -- garrett'sact scott name is advanced to lead the bank as chairman, we are deeply concerned that many of these credits, $30 bi

secretary mnuchin, welcome again. you are part of the history of less than enthusiastic support for medicare, social security, unemployment benefits. i was in youngstown, a woman said i am 63 years out -- old, i have three jobs, no insurance. my goal is to live i am 65 and i have medicare. that was her goal, not to see her grandchildren, not to see the world. that is what the system has done to her. the secretary of hhs, your colleague talked about raising the disability age to 67. mark: we are exiting this now. question and answer by steve mnuchin for the senate finance committee. mark: we will go back to brussels with president trump slamming fellow nato members for not paying their fair share, just a few moments ago. he said 2% is the bare minimum for confronting today's threats. nato must contribute their fair share. he also led a moments silence for the manchester attack. the official photo is taking place between nato members. we will go back to brussels. this is bloomberg. ♪ . . vonnie: european close on bloomb

mnuchin: absolutely.know when you are running a business, you have an income statement and balance sheet, and if you are making an investment with a 20 year or 30 year payback, you don't expense it all in day one or look at it as a complete expense. the government budget treats everything as cash, so it makes it more difficult. john: if you had to bring them into finance infrastructure, what is the main route you would take? pricing, long-term? mr. mnuchin: we have seen lots of interest from our counterparts investing in the united states, infrastructure or other opportunities. i think this is something we will be able to get done. john: the long-term plan to boost growth, does that come back to the same thing ronald reagan did? you cut taxes, get rid of regulations, and that will push growth by itself? mr. mnuchin: that is a big part of it. we also need regulatory relief and trade reform, but simplifying taxes and making businesses competitive are a big part of that. we have trillions of dollars left off

mnuchin: that's true. but free and fair trade is a reciprocal agreement, like any health -- anything else. it's about deals that should be .air in both directions we want to make sure the u.s. companies have every opportunity to export. we are focused on growing exports, not cutting imports. our trade imbalance is too big, it hurts the american worker, and that is something the president is very focused on. >> the whole issue of calling china a currency manipulator. do you think that has make your job easier? sec. mnuchin: we had a very important meeting with the chinese. i think the president has made it clear that the number one priority is to have them help with north korea, and that's something they are doing. >> the security side of your job has become a bigger factor than you expected when you went to washington. sec. mnuchin: it is. i'm spending a lot of times on the sanction programs and terrorist financing. it's a very important part of everything we do. >> thank you, secretary. vonnie, back to yo

mnuchin and i agreed on the now legendary mnuchin rule of no absolute tax cuts for the rich. after what we've seen in the tax plan, and the budget, i guess we got to throw that in the waste bin alongside the trump plan not to cut medicare. their health plan reduces -- makes it harder for us to keep the trust fund solvent. there's the trillion dollars in medicaid cuts. and there's the $70 billion in cuts in social security disability. so the promise not to cut medicare, not to cut medicaid, and not to cut social security disability also has not rung true. now, to the second point. the trump economic team is dusting off the old disproven idea that tax cuts completely pay for themselves. there is not a reputable economists out there that agree withes that. governor brownback of kansas slashed rates for the wealthy and businesses, zeroing them out in some cases. he sold the plan by saying it would launch the state's economy into the stratosphere. instead its revenues have cratered. kansas is struggling to keep schools open and basic services running. go back further to the early

treasury secretary steve mnuchin.s is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. oliver: i'm oliver renick. this is "bloomberg markets." let's get back to our breaking story. bnt, rbl said to get subpoenas in u.s. treasuries probes. bloomberg's reporter has been covering this development and joins us from washington. we know the justice department for about almost two years has been looking into whether or not there's any type of rating in the markets of u.s. treasuries. -- treasuries, specifically in the trading of securities, the head of treasury options. what we reported this morning was that several banks have been subpoenaed recently, last month, as part of this investigation. the banks that we disclose today have been subpoenaed, bnp, rbs, and ubs. vonnie: what exactly are they being investigated for? being investigated -- the justice department began as a pretty broad look at whether there was manipulation in this market, similar to what prosecutors found in libor and currency rates are they too

joining us to talk this morning, stephen mnuchin. stay with us as he walks through the tax reform package text of a sanctions deregulation as well. tucker tullius here and chief economic and wiser plus guggenheim partners. comes to you live from los angeles. a big week in washington as lawmakers prepare to vote on a $1 trillion to fund through september after bipartisan negotiators seal the deal in the late-night session. the trump administration pushes for a boat as soon as midweek this week. here is part of what treasury secretary stephen mnuchin told me about what the white house economic docket looks like in the days ahead. >> we are confident the bill will be passed. health care is on the agenda and looks like that will come through as well. i think we were on the tax and economic plan during the campaign. literally we have been working weekly with the house and the senate on the tax man. this is about simplifying personal taxes. it's about creating a middle incomeax-cut. we have one of the highest corporate business grade in th

as opposed to mnuchin you' rule.e'll work with the house and senate on the ultimate plan. that's the principle. where it ends up will depend on how this turns into a bill, but the president's objective is creating a middle income tax cut and not creating tax cuts for the high end. >> despite what are doubts of some out there who follow -- gdp growth is what -- productivity gains and hiring more team is the key to gdp growth. so how do we get from this tax plan, tax reform that so many corporate leaders told me for so long we need, how do we get from that and individual to kinds of growth we're talking about? make the connection for me and the american public so we can fully understand how we're not going to generate enormous deficits. >> first, on the business tax, we have the most uncompetitive corporate tax system in the world. we have one of the highest rates. we tax on worldwide income. we have deferral. it's not a surprise that businesses leave trillions of dollars offshore. by going to a territorial system and

secretary mnuchin we are grateful to have you here. appreciate your willingness to serve your country and please proceed with your opening statement. >> is a pleasure. chairman, a ranking member member, and members of the committee is an honor to be here today. i am looking forward to working with members of congress to pass important legislation for the american people. with a number one priority is treasury secretary to create sustainable economic growth for all americans. the best way to achieve this is there a combination of tax reform, regulatory relief and it includes making difficult decisions with respect to our budget. we bear the cost of previous years and this has forced us to making hard to resist. but the remarkable thing is that a build on itself. '' we develop the right policies today the children and grandchildren will reap the benefits. indeed in the next tenures returning to the of moderate historic average, at our economy will grow by trillions of dollars. this will be meaningful to every man, woman, and child in thi

i think the trade wars will get resolved and i think mnuchin is right.he trump administration is simply saying that countries that are export-driven cannot continuously sell products into the u.s.. they of naproxen with americans buying foreign products but they would also like u.s. companies to be able to sell their products in foreign countries so they want a free and fair trade agreement. i think they're going to have to renegotiate bilateral trade agreements between countries just to make it more fair. the currencies do play a big part so i think they will resolve it. it will take time but there are other geopolitical issues they're having to take care of right now. >> one of those issues of course always being north korea. president trump saying he would not mind meeting with kim jong-un. giving this has been here for years and years, have you factored that in when it comes to recent provocations or is this not an issue for you? >> it is an issue for us but if you look at financial markets, this has been an issue that has been ongoing for some time.

secretary mnuchin, his third day up on capitol hill. he was before the ways and means committee yesterday. if you'd like to see that hearing it's online at cspan.org. the senate itself is in session today, taking up a judicial nomination. they get underway in 25 minutes, 10:30. there's the chairman, the house is also in session. it's their last legislative day of the week with a special election underway for the seat, the at large seat in montana to fill the space vacated by ryan zinke when he became interior secretary.

mnuchin in bari, italy this morning.e said that he's quite excited about the trump administration's trade policy, and he says he is happy with the u.s./chinese trade measures. >>> chinese president xi jinping is expected to detail plans for his belt and road initiative this weekend. 8 28 heads of states will attend the summit and over 50 project agreements will be signed in a bid to further the progress. the ambitious initiative to build a new silk road between china and europe was introduced in 2013 but specifics have remained scant. a $40 billion fund has been earmarked for the scheme but concerns arose over the economic and security risks of the proje project. while some remain sus person shus suspicious of china's aims. it's an ambitious plan encompassing 4.4 billion people and up to 40% of global gdp. is it too ambitious? >> at the moment, yeah, it's too ambitious. it's been built up to be a big global initiative. for the moment, it's largely part of a more broad effort by xi jinping to increase china's influence. s

vonnie: steve mnuchin is not concerned with optics today.didn't attend part of the seminar inequality. that was one part of the g7 meeting that he missed, but, tell us why they were there in the first place when so many are going to change like the french finance minister possibly. britain's representatives are possibly going to change as well. is true.t the european picture could shift around, and steve mnuchin came here, arrived about two hours after all of the other ministers. you can see the flights here behind us, the u.s. flag, for the first couple of flag -- ours wasn't up there. maybe because of when problems, but they didn't put it up until the treasury secretary arrived here. as far the european flags up there, they will stay in the g7, but your point is a good one. france finance minister might not be the finance minister very much longer because of the new government there. a lot of people in europe are hoping for a tighter, stronger europe, a stronger union between the european countries. for example, the european commissioner t

mnuchin: absolutely.ing a business you have an income statement and balance sheet. when you are making an investment that has a 20 year or 30 year payback, you don't dispense it all into a one -- day one or look at it as a complete expense. the government budget treats it all his cash, was makes it difficult -- which makes it difficult. >> if you had to bring investors into finance that infrastructure, is it merely to do with pricing, long-term? sec. mnuchin: i think we've seen lots of interest from our counterparts, investing in the united states, whether it's infrastructure or other opportunities. i think this is something that we are going to be able to get done. plans to boost growth come in the end does that come back the same? this idea that you cut taxes, and you get rid of regulation, that that will push growth by itself? >sec. mnuchin: we need regulatoy relief and we need trade reform. but simplifying taxes and making businesses competitive are a big part of it. we have trillions of dollars that

mnuchin and i agreed on the now-legendary mnuchin rule of no absolute tax cut for the rich. but after what we've seen in the tax plan and the budget, i guess we've got to throw that in the waste bin alongside the trump plan not to cut medicare. their health plan reduces, makes it harder for us the keep the trust fund solvent. there's the trillion dollars in medicaid cuts, and there's the $70 billion in cuts in social security disability. so the promise not to cut medicare, not to cut medicaid and not to cut social security disability also has not rung true. now to the second point. the trump economic team is dusting off the old, disproven idea that tax cuts completely pay or -- for themselves. there is not a reputable economist out there who agrees with that. but you don't have to take my word for it, you can look back at history. of just in the last few years, governor brownback of kansas zeroed cuts out this some cases saying it would launch the state's economy into the stratosphere. instead its revenues have cratered. kansas is struggling to keep its schools open, and bas

house still committed to the steven mnuchin role? it does not look like it when he was asked in the house and senate, he does not restate that commitment. when i heard it originally, i said this sounds like a step in the right direction, no absolute tax cut for the wealthy. i asked him and said, from this day on, let's call it the steven mnuchin and he thought that was an appealing idea, almost like the buffet rule but it did not take long for him to walk it back. when you think of some of what is in their tax reform proposal and right now it is only one page, shorter than the typical drugstore receipt, the special 15% pass-through rate which would allow the fortunate few to convert ordinary income into investment income to be eligible for this special rate, that could be susceptible to abuse and it comes at a time when the president has proposed cutting resources for a tax enforcement. julia: we will have to see what happens when the page is longer but robert comey, are you hearing anything about whether the special counsel could li

secretary steve mnuchin.of topics from the conference in l.a.. ♪ manus: "bloomberg daybreak" europe is our flagship show. i manus cranny. i am anna edwards. --anna: i am anna edwards. 1.5 one billion. that is significantly above $1.51 billion. news for the team, dividend remains at $.10. production 2.38 8 million barrels per day. i have seen a number of over 3 million barrels a day -- a day. we have the adjusted first-quarter profits. good news in terms of being able to continue to pay the dividend without increasing the leverage. 55% above what it was in 2016. on the beachn, all side. the first quarter of 2017 and it it is a 7 -- substantial one. exxon, chevron beating estimates. we are getting numbers from aberdeen asset management as well. half,venue for the first just a touch above the 529 million. is on track and they will be joining the bloomberg team later on in the programming. manus: futures, we have got those in focus. hsbc has a buy recommendation of we're up at a 10th of 1% in london. the rest of

steven mnuchin meeting, adam shapiro in italy, good morning.morning to you, lauren. that's right, the secretary is actually meeting with his pierce from the g-7 along with some of the governors from central banks. janet yellen is here as well. the chair of federal reserve in the united states but the discussion that mr. mnuchin is taking part in and leading actually, one of those discussions has to do with cybersecurity, one issue that's not on the table trade is a big topic here because the new policies for the trump administration of america first have certainly brought into question among our eu and g-7 trading partners what that means for them, so we got a chance to briefly speak with secretary mnuchin, here is what he said. >> i think we are excited about u.s. trade policies and i think you probably saw last night we made announcement with economic plan with the chinese, i think we are happy with that. adam: now that was secretary mnuchin but when you speak to different finance ministers, there's a different take on the u.s.' america first

treasury secretary steve mnuchin's testimony today.t he said and what we learned about tax reform and the budget. this is bloomberg. ♪ ♪ david: this is "bloomberg markets: the trump economy." i'm david gura. testimony from steve mnuchin today on the budget and tax reform. he reiterated the goal of 3% gdp growth. here with the latest is our congressional reporter joining us at the capital. give me a sense of how much growth was discussed? the belief in the white house that getting to 3% growth is attainable and fairly soon. >> it was a central part of the discussion today and steve mnuchin said it was the main goal of the trump administration to grow the economy, that is why they are doing tax reform and rolling back regulation. they want to get the economy growing again. the chairman of the senate finance committee today pointed out that president obama in his budget also had a pretty high estimate for economic growth and he said that 3% growth in this budget is lower than what obama expected. we saw in theast eight years the economy d

secretary mnuchin, thank you for your service. we are grateful that you have taken the job you have. are you aware that we collected revenue roughly 18% of our gross domestic product? >> yes, chairman hatch made that comment at the beginning. >> are you also are where we spend a little over 21% of our gross domestic product? >> yes. >> you presented a budget and i say so the tea party folks in america can hear it that you are presenting a budget that cuts more taxes. we will now be lower particularly that economic growth you have talked about and lowered to 18% and at the same budget that spends more money. we are cutting taxes and spending more money.an is that not correct? >> again, the budget doesn'toeso model any tax changes because we didn't have them ready.an >> are you not cutting taxes in the budget? >> we are cutting taxes. >> so the distinction or difference between 18% we are collecting revenue gdp and the more than 21% we are spending in this government in gdp, all promises have been made to the tea party, balance the

steven mnuchin did say he shared the senator's concerns about that tax. and you also just heard an exchange with one senator over the pass-through rate and whether or not small businesses should be taxed at the same rate as large corporations. now the white house's plan does include a 15% tax rate for businesses of all types. and secretary mnuchin reiterated that they do plan to try to find a way to ensure that rich people don't take advantage of that as a potential loophole but he gave new further details how they plan the do that. >> thank you for summarizing some of what we heard from the treasury second. we will continue to watch that, bring you the headlines. back here on squawk alley with jon fortt and johnson tolly. watching the market having a come back. some of that is the tech, that got battered yesterday. apple up by 50 points along with goldman sachs. >> cisco's guidance was disappointing. can't help but draw a line on what internet spending was. cisco adding a wrinkles. one was federal spending. and the government line. another spending in me

has he given us any -- mnuchin. with john harwood we didn't hear a timetable. >> mcconnell said the prospect for a tax reform or cuts is better than the health care right now. >> i thought mcconnell can drive a lot in the senate. >> you have to do health care before -- if you are doing i would on reconciliation, do it before tax reform. do it on reconciliation on the fiscal year '18 budget. that's what i have been told. >> maybe they'll sneak in repatriation. don't underestimate mnuchin. >> i won't. but expecting tax reform this year, come on. by the way reform. we keep saying reform -- >> it doesn't have to be this year. >> most people that i speak to don't expect reform. they expect some sort is of a cut. >> i think there will be a cut. that's what i did -- >> a repatriation. >> the republicans will do a cut. >> they're fine with that. people expect that investors will be fine with that as well. >> i think so. with these kind of earnings how can you not be? you know, two out of three -- three out of four of every

treasy secretary steve mnuchin testified in a congressiol hearing.s testimony, he said the administration's goal continues to get growth to 3%. senator catherine cortez masto participated in the hearing in joins us. let me ask you what is on the agenda this afternoon. all senators invited to a closed door meeting. what would you like to hear from the deputy attorney general? sen. cortez masto: we want to find out what happened with the firing and find out the particulars of the past couple of weeks. many ofell you this -- my colleagues and myself are happy that a special prosecutor have been appointed and identified. we need to move forward with an independent investigation and protect the integrity of that investigation, not for the benefit of congress, but the general public deserves to know what is going on. david: has it changed how the congressional committee pursues their investigations having esther mueller? -- having robert mueller? sen. cortez masto: not at all. they are looking to uncover what happened and bring to light to the general publ

steve mnuchin: absolutely.re running a business, you have an income statement and a balance sheet. if you're making an investment that has a 20 year or 30 year payback, don't expense it in day one or as a complete expense. government budget treats everything has cached so nice it -- cachedit makes it so it makes it more difficult. >> if he had to bring them into finance at infrastructure, what is the main ploy you would make? steve mnuchin: we've seen a lot of interest from our counterparts in investing in the united states, whether it's an infrastructure or other opportunities. i think this is something we will be a will to get done. >> nafta is an old agreement. it does not reflect the current status of either the mexican economy or the american or the canadian. at a minimum, it needs updating. second, it has the problem with the rules of origin. mainly how much of raw material can be brought into from outside nafta and get the tariff benefits of nafta. in automotive for example, they did it part by part. som

that's why secretary mnuchin is moving the timetable up. at that new timetable. >> six years ago the 2011 fight over the debt ceiling was all consuming, and if there is a repeat of that, it could seriously imperil any progress or hope of progress for republicans regarding tax reform or healthcare. and this isn't just something that they may address or that they need to decide the address. the debt ceiling needs to be addressed. they don't have a choice. >> leland: as much as congress wishes they did. peter doocy on capitol hill, thank you. heather? >> heather: now to this, much of the mainstream media blamed for disseminating fake news. those claims coming from president trump as well as his supporters. the accusations are now being directed at fox news, at least when it comes to our news poll. the latest numbers showing that president trump's approval rating is at 40% and that's down from 45% last month. and those numbers created a firestorm on social media to say the least. joining me now with more on this, fox news media analyst and medi

betty: treasury secretary steve mnuchin has signaled that the u.s.t foreign investments. he says the review panel should focus on national security, downplaying the speculation that they would expand their authority. >> we believe in free and fair trade. where we are attacking days is where it is not free and fair. if we are charging someone zero tariffs and they are charging of 20% or 25%, that is not free trade. free and fair trade is a reciprocal agreement, like anything else, any deals that companies do or countries should do. it is about deals that should be fair in both directions. we want to make sure u.s. companies have every opportunity to export. we are focused on growing exports, not cutting imports. our trade imbalance is too big. it hurts the american worker. that is something that the president is very focused on. whole issue of calling china a currency minute later, do you think walking back from that has made sense and make your job easier? >> i think we had a very important meeting with the chinese. i think the president has made it

steve mnuchin weighed in on banking regulation as well mnuchin: we are determined to make sure we haveroper regulation so we don't but taxpayers at risk but we also don't have overlapping regulation and we have priorities. banks and insurance companies know what they can do. in market from singapore. we saw a market reaction today, a bit of a knee-jerk reverse when it came to the u.s. banks yesterday. about tax, a bit of a struggle. how much of a political reality is glass-steagall? >> i think is not much of a political priority. expectationsarket is that any action on regulation will be positive for banks in the short term. the easy games for them are to cut down a certain bit of the overlap in regulation steve mnuchin said. if they ever move toward breaking up the big banks that is a long-term project. and at theunlikely moment that is purely rhetoric. any progress is more likely to be positive than negative. >> the data was not great. >> data in asia was not great either. most of the pmi threat the asian region was not particularly great. people are happy that congress has reached a

involving the treasury secretary, steve mnuchin. one of the spicier moments in the exchange that he had with senator elizabeth warren who is standing by right now. >> senator warren is here with us. senator, could you tell us a little bit about your effort to press the secretary on his position on glass-steagall. >> remember that's about separating every day banking, checking accounts and savings accounts from high-risk investment, risk taking that only the larger institutions do. back during the campaign donald trump said he was in favor of breaking up the big financial institutions that do it. the republican party platform said we support reinstating the glass-steagall act of 1933 which prohibits commercial banks from engaging in high-risk investment. secretary mnuchin during his hearing to be secretary said that he supported a 21st century glass-steagall. i have a bipartisan 21st century glass-steagall law with john mccain, maria cantwell and angus king. what it does is exactly that, it separates everyday banking from high-risk i

perhaps not as busy as treasury steven mnuchin. it maybe past 9:00 p.m.n italy but with a pitch another the g-7 finance ministers under which beijing is apparently going to allow finally much more importation of u.s. beef while america will permit importing a cooked poultry from china. china will also allow foreign financial service firms, read u.s. like master card to prevent -- to provide credit rating services to the billion people in china. mnuchin noting that the trump administration wants to use this trade agreement as an example of how it will rework other packs and promote more and fairer trade and issue the president trump heavily campaigned on. let me get to charlie shapiro. adam: one of the things that they like to point out this is about creating jobs in the united states through free and fair trade deals and they intend to use the announced china deal this morning as kind of a litmus test and guide for perhaps negotiating new free and fair trade deals with new partners. mr. mnuchin is also selling the united states' tax reform plan and minist

mnuchin declined to shun protectionism, saying the u.s.ill do what is best for itself. >> we don't want to be protectionist, but we reserve the right to be protectionist in the extent that we believe trade is not free and fair. approach is to more balanced trade. >> it is important, protectionism is off the table. there was no disagreement on the fact trade promotes growth, so i am very satisfied. of course we need to make steps forward. there are different views across the g7 and the g-20 for that, but i am confident we can reach common views even on these issues. haslinda: global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thanks for that. paul is here with a look for what is happening around australia with trading underway. we have the first opinion polls out following the budget. did the government do well? paul: not really. thefirst poll has been preferred of the opposition labor party. the labor party is improved a little bit. the news poll, the other o

steve mnuchin signals and interest in issuing ultra long bonds. he tells bloomberg television he can accident -- absolutely makes sense. much more than a global conference. ♪ i will -- david: president trump made headlines yesterday but the also learned a lot about his leadership style. in washington, we're joined now and let's talk about the various parties he managed to alienate. he talked about north korea. did not like what he had to say about the prospect of meeting with that leader. walk us through everyone he managed to upset. conventional on presidency. he is flexible and can change on a number of different topics. he has managed an impressive number ofto upset a the gop establishment. he talked about raising the gas tax and that upsets peopleho do not want any types of taxes raise. he talks about leading with the -- meeting with north korean leader, saying we should take a harsh line against north korea and not consider meeting kim john kuhn. the president said he would be honored to meet under the rights of stances. he talked about break

secretary mnuchin appeared last week before the senate banking committee.

our report is from italy tonight. >> reporter: treasury secretary steven mnuchin called it a productive day of meetings in italy at the g-7 gathering of the world's most powerful economic officials. i asked him how he planned to explain president trump's controversial america first trade policy. here is what he said. >> we're excited about u.s. trade policies. and i think you probably saw last night we made an announcement of 100-day economic plan with the chinese. i think we're very happy with how we're proceeding. >> reporter: that agreement increases market access for u.s. beef producers in china and also allows more chicken from china into the u.s. u.s. ratings agencies and credit card companies are hoping to do more business in that country as well. now, treasury secretary steven man futunuchin was pressed for timeline for tax reform in the united states. the italian minister is encouraged. >> i understand there is a very ambitious tax reform program in the united states, and we're watching closely what is good for the united states and what would be learned by other countries abou

again, secretary mnuchin want to clean raise that.embers of the house freedom caucus want that in conjunction with debate over the budget. what's your preference in moving forward at that point? how important is it to raise the debt ceiling and is the budget a part of the process? >> critical we do it in a timely manner, sooner rather than later. i think it is critical that we show reassurance, you know, we continue to pay our debts and be that reliable economy around the world. i did think there's opportunity for making some of the budget reforms, we long talked about here, we have a president who is open to changing the way washington works and how we compile budgets and how we do spending in all going forward. i would like to see long term social security medicare, critical parts, not just of our safety net, but of our financial situation going forward. i really think those have to be serious conversations, whether it's in this or that ceiling going forward. if we're going to save the programs, solve them for the long term. >> befo

you don't see steve mnuchin and guerre ary cohn on the hill working on this and that's what the markets are dependent on. they're losing confidence they're going to see that agenda. if that republican agenda isn't pushed forward, why are the markets going to have this accentuated boom with trump? it was based on promises and those promises at this point, there's no sign of them being kept. i spoke to a republican earlier that said, well, remember, president trump put forward that tax reform bill. do you remember that -- i mean, that was one piece of paper that looked like it was written on a school bus ride. >> it might have been, steph. i've waited my whole life to say this, stephanie rhule, come on down. >> the price is right. >>> hello, everybody, it's 4:00. we are on deadline. president trump just returned from a short day trip to connecticut where he delivered a commencement address making his first public comments since the bombshell report of the comey memo. >> look at the way i've been treated lately. especially by the media. no politician in history, and i

i am totally in support of people like trump and steve mnuchin.e have got to cut spending, cut taxes, and we will have a booming stock market like we do know. host: that is joe, a longtime caller. patrick is up next in florida, independent. .aller: good morning let me first say, i really messed your family values -- missed your family values crowd last year before the election. he did not bring any of them out. hello? host: i am listening. steve mnuchin,ed .dic was in the 40 thousands we have had six or seven financial bailouts. to not mention a word about that, of course. i noticed you had the oklahoma guy on yesterday talking about states' rights. i wish i had a dollar every time i heard states' rights. i would be a poor man -- a rich man. you did not ask the oklahoma guy , texas, oklahoma, in california, we see the most fema payments in -- year in and year out. go to your state or go to a private insurer and get your money, not the federal government. thanks for taking my call. host: patrick murphy referring to a segment yesterday, patrick cock

so everyone else was here from 8:00, 8:30, and secretary mnuchin didn't get here until 10:30.o word on whether he was jet lag or he had other meetings or you didn't want to go to that particular panel discussion. or haveis a technical you seen before a federal reserve chair at these meetings? they are typically at the fiscal policy level, right? matt: we do. on the fiscal track you do see the central bank heads here as well. so mario draghi is here as well as all of the other central bankers. they come with their treasury secretaries or ministers. thank you, matt miller in bari, italy. let's check in on first word news. lawyers say trump's he doesn't get any income from russia, plus they say you doesn't go any money to russian lenders. the lawyers say that comes from a review of the president's tax returns for the last 10 years, they did not release copies of those returns. attorney general jeff sessions is instituting a new policy that is certain to send more people to prison for longer terms. sessions has told federal prosecutors to pursue the most serious charges possible a

treasury secretary steven mnuchin is testifying alive about the budget proposal. it is discussing a potential of the border adjustment tax at this very moment. you see the representative asking about that. it's very much a touching go the situation. some of them like the adjustment tax. the budget over all received a rather warm welcome from republicans but of course the democrats really hate it. they specifically don't like the cut to children's health insurance programs by at least 20% over the next two fiscal years and then of course the planta/medicaid. you are live in dc. tell us exactly what we need to pay attention for. but our viewership needs to hear about tax reform. it's a unified message on tax reform. and it is combined with the budget message. the trump administration their budget message boils down to just a few key concepts. there must be 3% economic growth to balance the u.s. budget. steve mnuchin listed the only way to achieve 3% growth is accommodation of tax reform and budget cuts. has proposed cuts and actually maintains current spending level

and secretary mnuchin, the hearing is concluded.ore i hit the gavel, thank you for your openness and your work with the committee. i mirror what senator toomey said. you've been very willing to give us your time both in formal hearings as well as in private meetings with the senators of this committee and of other committees. i appreciate your outreach to us. thank you very much for being here. >> a pleasure.