steven mnuchin will be here. and larry kudlow. along with the advisor and daughter to the president, ivanka trump is here. along with the office of management and budget director mick mulvaney. and we have an extended preview of my exclusive one-on-one interview with president trump. that interview airs sunday at 10:00 a.m. eastern on "sunday morning futures" and monday morning at 6:00 a.m. on fox business network on "mornings with maria." here are the big headlines this week. reporter: another rocky week for the markets. despite a late-week rally by nike, jp more dan and goldman sachs. the markets finishing in the red in part from trade concerns. despite a strong month, consumer stocks and real estate raising rates for the second time this year. trade concerns causing the mark totes finish mixed this week. oil prices hitting a 3 1/2 year high. president trump was in wisconsin this week to break ground on foxconn's facility that could employ 50,000 people. he took a shot at milwaukee-based company harley davidson after they announ

dialback mnuchin might be able to get is up in the air. thene: i wonder if president is watching his bloomberg screen. he likes to see the stock market rally. we will see how that balances out. now we will get right to the first word news with jessica summers. jessica: the turkish leaders attempted a rally after erdogan's election victory proved short-lived. concerns about the central bank and policy direction saw concerns erased gains as -- by as much as 1.3%. this quarter as erdogan urged his central bank not to lower interest rates despite double-digit inflation. asked arights group has u.s. judge to order the trump administration to reunify more than 2000 immigrant children. the aclu filing calls for a halt to all future separations of families crossing the border to seek asylum. trump's executive order from june 20 has "explicitly polls," they said. the european union has promised to oppose trade protectionism. beijing, talks with the vice premier said they both oppose protectionism. he said sucks -- such actions and evengger tribalis

steven mnuchin's silence could be speaking volumes. years keeping silent on trade tensions with china. disney could be getting a green light on its fox deal. the justice department has approved the deal. more on the exclusive bloomberg reporting ahead. president trump signing in order a few moments ago to end the immediate separation of immigrant families at the u.s. exit go border. it should spark outrage -- it would -- it has sparked outrage. afternoon after this executive order, reversing what the white house has been saying for this policy is rooted in law and congress has to act. what do we make of the decision on this? where does that leave congress? this issue has created a national firestorm that has roiled the white house. criticism -- it has sparked criticism. i read the text of the order. it requires the attorney general to file a motion in court that the settlement from 1997 to allow the administration to detain children with their parents. right now there are restrictions on what they can do in terms of detainment of child

. —— mnuchin. according to mrmnuchin, all on friday. —— mnuchin.ology. so it would be interesting to see what the additional measures would be. the tech stocks have been hanging steady despite all of the uncertainty, but now they seem to be shifting as well. we have seen companies in the us, including tech companies, and this has been one thing that the us has always braced itself for space opened to foreign investment — at least for many yea rs— investment — at least for many yea i’s— so investment — at least for many years— so i think it is concerning from an investment point of view that people are now saying you cannot buy this any more. do you think these mixed signals coming out of washington are a negotiating tactic as many have suggested in the past few months. many have suggested that these tariffs were — or now that these tariffs were — or now that they're coming into force, and now we are seeing a that they're coming into force, and now we are seeing a rich and from companies like harley—davidson, that is the new reality. a bigger goes t

investors will want to stay tune to fox business as maria bartiromo sets get to interview steven mnuchin, mick mulvaney and white house adviser ivanka trump and many more in washington. that's all this morning. fbn:am starts right now. ♪ ♪ gerri: good morning, it's 5:01 a.m. in new york. good morning, i'm gerri willis in for lauren simonetti. cheryl: good morning, everybody, i'm cheryl casone. we begin this morning with 5 people gunned down and killed in a targeted attack at the capital gazette news room in maryland, suspect in custody, jerry ramos of maryland, ramos will go before judge this morning. he had a long-held grudge suing paper for defamation over reporting of him and raising social media campaign against them. >> this person was prepared to come in and this person was prepared to shoot people, intent was to cause harm. we know that there were greats sent to gazette through social media. gerri: signs and signals that this will happen. in response to shooting police stepping up patrols and why nypd officers outside new york times and outside abc headquarters right here in new y

here is mnuchin talking gdp.ake a listen. >> we're excited this is the six month anniversary of tax kupts we're expecting a big second quarter gdp number let me say, i have no advance notice of what it looks like but the atlanta fed is projecting 4.7. i have no idea whether it'll be that high. but a year ago people were laughing when we talked about 3% gdp. >> we'll see where we get. today's data not especially scintillating. capital goods orders up .2 we were looking for .5 these are preliminary numbers for may. if you want to build a case purchasingisions are being deferred because of trade, you could probably make one. >> we'll get more commentary in the next few weeks they're expected to be pretty good another 20% plus earnings growth numbers. it's going to be all in the commentary and the question marks around trade and just as far as the economic impact, guys, mnuchin told the folks on "squawkbox" it's not set to have economic impact speaking to i think some of the concerns they're hearing from business, po

maria: are you worried that the tariffs are going to cut into that, second mnuchin?o sector group, they say a major lobbying group for the auto sticks we're worried that the tariff will amount to a $45 billion tax on consumers, wipe out all the benefits of the tax cuts for middle and low income americans. >> i can assure you that we are not going to do anything that wipes out all those benefits or does anything that has a significant risk on growth. what i will say is the president has been very focused on this back to the campaign. we've been very clear. this is part of the economic plan. and the president is fighting for hard-working americans and wanting to create free and fair trade. larry was at the g-7 when the president said to the g-7, okay, let's sign a free trade agreement. no tariffs, no subsidies, no nontariff barriers. maria: we're going to take a quick break. we want to hear a lot more from you steven mnuchin. larry kudlow will join us as well. both will have a lot more to say. booking a flight unlocks discounts on select hotels until the day you leave

steve mnuchin is bullish on what the next six months and beyond will look like for tax reform and the economy in general. >> a lot of the growth that you're seeing now is the impact of the tax cuts, the impact of the bonuses. but you're going to to see this throughout the next year in a large way. >> in of the critics had complaints going into all of this saying how is all of this going to be paid for. they were worried that this could drive a hole, a continuing hole into the federal deficit. today those criticisms were reunited when larry kudlow said the deficit is coming down rapidly. the numbers released 2017 october to may, the deficit was $433 billion and in the same time frame in this fiscal year it's increased nearly $100 billion. melissa: i don't know. we'll get all of that tariff revenue to plug the hole. jack and carol are back. what do you think about tax cuts 2.0, maybe another cut to the corporate tax rate. carol? >> oh, i think it's music to my ears, especially if we see it for some of the small business owners that sort of hisse misset the first time around. and i think

looks to boost an existing federal body chaired by steve mnuchin more when we come back sif. >>> welcome to "street signs." i'm joumanna bercetche these are your headlines don't expect an asylum agreement at today's eu summit, that's the message from angela merkel who says they have a way to go on migration. >>> european markets are under pressure as the u.s. tightens investment restrictions. >> the president was very clear, we'll treat china the way we treat other people to the extent we're worried about transactions, we will block them >>> the white house and kremlin agree to a summit between donald trump and vladimir putin after the nato meeting as washington defends the president from criticism over his stance towards moscow. >>> and h&m second quarter profits fall more than expected as higher markdown levels and growing inventories weigh on the world's second largest fashion retailer >>> good morning looking at the mood in europe. today it's more positive, but the session in asia was mixed with the chinese index, the shanghai composite struggling a bit yet again, down 1%, officially

to move markets earlier this morning but then you had the treasury secretary that came out steven mnuchin he sent out a tweet, about 11:30 or just mid-day and he said that the wall street journal as well as the bloomberg report is false even though fox news we did report it as well. he said there will be restrictions later this week but this is the key part that actually started to move the markets is that the restrictions are not specific to china, but to all countries who are trying to steal our technology. and so the keywords there are all countries. if you go back and my colleague adam shapiro pointed out in the original washington investigation regarding intellectual property, there's a list of 12 countries that are on the priority list. china being number one, but there are other countries you wouldn't expect like canada is on that list and then of course we have india and in o near a, argentina the list goes on, and you have steven mnuchin that's saying this is all fake but then just last week you had trade minister peter navarro on mornings with maria and he said otherwise. listen

the opposite of mnuchin. here he is. >> let me be really clear.ns to impose investment restrictions on any countries that are interfering in any way with our country. this is not the plan. >> so mnuchin says, all countries and navarro says no countries. you know both men. what the heck is going on here, steve? >> i don't know what to make of that, frankly. i mean, i think that there's still a lot of confusion in the white house about what the policy is going to be. as i said before, i think everyone does want to get -- and the curious thing about this, the one thing there is broad agreement about in the white house is that china really should be the target of, you know, our trade disputes, not so much europe, not so much canada, but china. and so, you know, if you're going to put these restrictions on, for example, ownership of american technology, you know, it would make sense to target them towards china. i'm not exactly sure where this policy is headed. but look, the stock market, you know this, erin, you covered this for years and years and ye

alix: the chinese ministry did not respond, but secretary steve mnuchin took to twitter to disputed,ing that on behalf of president trump, the stories in bloomberg and wall street journal are false an fake news. >> there is a lot to sit through as we see the selloff and reaction to the news that the administration was considering investment curbs on china, in a u.s. technology firms. we just heard from peter navarro who said that there was a thenderstanding about administrations trade policy, saying that there are actually no plans to implement investment restrictions on china and others. could the market action today have dissuaded the administration from putting those curbs in place? >> we have seen this situation where markets go down because they see changes in policy, then a spokesman who has been a cheerleader for that particular policy goes out and says, nah. that is not what i meant and increases uncertainty. >> race to rebound shares up today as the ceo shrink the company in order to save it. >> this is a radical break up, what people have been waiting for, and it goes a lon

start the send to larry kudlow and steve mnuchin. guys who understand if you want to push back on china, which i believe is the right thing to do as well. let's come up with a comprehensive plan to rally our allies around it and stop putting into place these blunt tariffs, which conspire out of control and ultimately hurt amican consumers and american companies. maria: but let's not forget these are important issues. hurting american business has been happening for decades now because china feels the intellectual property, while not even admit that they're doing it. >> why would you want the white house to hurt american companies? for a start you've got the trips agreement and the wto in intellectual property. you can rally allies to run restricting investment in china or selling sensitive technology. >> would have the chinese is safely in the european and japan

steve mnuchin has been vying for months to choose a less confrontational approach to use the existingwork of a law that has been modernized in congress. the bill has been in the senate and house the past year and is expected to be approvedo give it broader authority to look at investment coming in overseas. vonnie: i want to play you something that larry summers told us a little while ago from aspen, colorado about his thoughts on how it is playing out. >> the rhetoric from the ofsident is running ahead the reality. and that is why i have got a fairly high level of anxiety at this point about how this is all going to play out. if he has anxiety, the chinese do as well. what does it portend for the future of trade? saleha: one thing to remember is china wants none of this. they didn't want the emergency law to be triggered but also they had been pushing back against cvs, the committee for foreign investment into the united states. the trump administration has used that as a foreign-policy tool to block investment into and sensitive technologies out of silicon valley and other parts of

now, for his part, steve mnuchin says he has conveyed some of these concerns back to the white house back to president trump. and what has president trump said? so, there has been no official reaction from the white house, at least not yet. but the president has been tweeting on the topic of trade throughout the day, slamming what he calls "unfair trade" and "stupid trade," saying that he wants to see a "rebalancing of trade" with some of these key allies that he has imposed tariffs on in the past few days. that could set him up for an awkward meeting this weekend. he is going to quebec, where he will meet with other g7 leaders, and i think it is highly likely the issue of trade will come up. and i guess all of this suggests that these countries want to talk first, before getting entangled in serious trade wars? they are definitely looking for some sort of concession from the us, or even a reversal of the tariffs imposed this week. the us, for its part, says the imposition of tariffs is not preclude negotiations. wilbur ross was in paris this week where he met with eu officials ahead

steve mnuchin denied china was a target, but said he would hit all industries. steve mnuchin called the markets drop an overreaction. >>> ahead, the secretary of defense landing overnight in china. a critically important trip with north korea. trade and security issues at play. will ripley is live for us in beijing. that is ahead on "early start." yould apply for amedicaree plan whenever you want. no enrollment window. no waiting to apply. that means now may be a great time to shop for an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. medicare doesn't cover everything. and like all standardized medicare supplement insurance plans, these help cover some of what medicare doesn't pay. so don't wait. call now to request your free decision guide. it could help you find the aarp medicare supplement plan that works for you. these types of plans have no networks, so you get to choose any doctor who accepts medicare patients. rates are competitive, and they're the only plans of their kind endorsed by aarp. remember - these plans l

definitely an awkward couple of days there's big us treasury secretary steve mnuchin.fter these big set piece meetings, all of the leaders assembled will issue some sort ofjoint statement leaders assembled will issue some sort of joint statement to leaders assembled will issue some sort ofjoint statement to show leaders assembled will issue some sort of joint statement to show this is what we discussed and agreed on, show that they are all unified and together but it didn't happen this time, clearly a sign of the discord among the group. on top of that he saw the french finance minister said the us had just days to address their concerns, not weeks, orthe the us had just days to address their concerns, not weeks, or the us risks sparking a trade war. for his part, risks sparking a trade war. for his pa rt, steve risks sparking a trade war. for his part, steve mnuchin says he has conveyed their concerns to the white house we will see what sort of reaction they have in next couple of days. has there been any reaction from the president to this? no official reaction but h

treasure secretary mnuchin also told us that it will prohibit or could prohibit the transfers of technologyough joint ventures as you know sometimes companies, they may get turned down through the cfius process but create a joint venture on the other side and that be prohibited through this process i think there's some -- what's the right word or way to put this -- some happiness out there in the market that navarro and light houser are not entirely driving the trade train on their own, tha being runy also mnuchin and hassett and kudlow, seems to be having -- cooler heads are prevailing on this take a look at chinese foreign direct investment in the united states over the past several years. you can see it absolutely plummeted over the past several years right there. the first half of 2018, down some 90% this is the u.s. dollar amount and then you look again at the number of transactions and that's come down as well look, chinese buy u.s. bonds, they hold u.s. dollars, in part because they feel like they have a claim on u.s. assets if we were to reduce that amount or make that conversion mo

definitely an awkward few days for us treasury secretary steve mnuchin.ormally after these big meetings you get a joint statement from all the ministers who were in attendance, summarising what they talked about and what they hope to accomplish going forward. that hasn't happened after this one and thatis hasn't happened after this one and that is a clear sign of discord in the group. on top of that we have the group. on top of that we have the french foreign minister coming out with a very strong statement, saying the united states had just days to avoid potentially sparking a trade war with some of its closest allies. for his part, steve mnuchin says he has conveyed some of these concerns back to the white house and back to president trump. and what has president upset? so, there has been no official reaction from the white house, at least not yet. but the president has been tweeting on the president has been tweeting on the topic of trade throughout the day, slamming what he calls on fair trade and stupid trade, saying that he wants to see a rebalancin

steve mnuchin played down talk of us isolation, saying his country believes in the g7. think our leadership on the economy, which is one of president trump's major objectives, that national security, is not only good for the united states but is good for growth around the world. and, if anything, that additional growth is potentially leading to us even more reason to want to focus on these trade issues. signing in measures against cheap steel and aluminium imports was a key campaign promise for mr trump. he said china was a key offender but now, america's allies have been hit too. the tariffs on the eu, canada and mexico have led to a heated response. canada is imposing dollar—for—dollar countermeasures and the eu says it is taking the matter to the world trade organization. the message from six of these finance ministers — there could be a trade war within days. so if this meeting has been tense, next week's summit of g7 heads of state could be even more difficult. lebo diseko, bbc news. a short time ago i got the latest from our business correspondent paul blake in ne

there are some reports that secretary mnuchin will reduce tariffs on canada. >> i'll leave that to the meetings. the meetings will produce lots of stuff. lots of hands. >> thanks, larry. you mentioned ten will have a bilateral during the g7 with canadian prime minister trudeau. how would you describe relations right now between the u.s. and canada? are they better than have existed in prior administrations, or are they worse than existed pio administrations? >> i don't want to make coarsons with prior administrations. >> please, for my benefit. >> yes, i know. just between us. i get it. appreciate it. look,ident trump talks to prime minister trudeau a lot and continues to do so. i think the bilateral meeting that's scheduled between the two is a really good thing, and i think they'll walk through a lot of these iues. i have no bt the united states and canada will remain firm friends and allies, whatever short-term disagreemen may our. so, i would say relations are very good. yes? >> what are the prospects for nafta being renegotiated this year? >> well, we're still talking. communicati

>> on friday, treasury secretary steven mnuchin and will release new restrictions on chinese states.ntthe united reports are that it will focus exquisitely on investments in the tech industry. >> so the treasury has until july 29 to announce a proposal on restrictions on chinese investments in the u.s. this would be in retaliation for about taking of intellectual property rights for u.s. companies operating in china. >> if we go down this road, it will only reinforce sort of our deep divide between the u.s. and china, the question has made clear that they are willing to buy more goods to close the goods deficit. but there are not willing to budge on their future investor industrial strategy. >> an inquiry about the report, but steven mnuchin took to twitter to disputed, saying that on behalf of president trump, the stories and bloomberg and wall street journal are false and 50 news. >> there is a lot on the market front today as we see selloffs in reaction to the news that the administration was considering investment curbs on china, in a firms.chnology we just heard from peter navarro

treasury secretary mnuchin now saying you're all suspect. ing could bank of america economists be right on this? >> well, i think the keyword is -- oh, sorry. liz: chris. >> yeah, the keyword i think is could, with a capital c. if these guys really think it's going to happen then, you know, it's very easy to put yourself in a position to make a whole lot of money. if you think the stock market's going to lose 20, 30, 40% -- right behind me you can buy puts, you can get short the s&p and you could make enough money to buy the new york jets if you're right. [laughter] so i would say, you know, put your money where your mouth is, and that's why we come to work every day. i've been listening to this for the last eight years, you know? the end is near, the end is near. at some point we're going to have a correction, but i think to call a top is very difficult. liz: i don't know whether that means you'll make a lot of money or a slam on the new york jets. teddy, you probably know better than i. is this more than just a correction at this point? we

and this is what got us thinking about this secretary of the treasury, steven mnuchin, was on "squawk box" thimorning. as he spoke, we saw a massive turnaround in the futures. let's take a listen. >> we're very pleased it has been passed on a bipartisan basis. yesterday, 400-2 at the house. that's just an overwhelmin bipaan response. and we have looked at the issue of protecting technology is very, very important and we will use these new tools very carefully >> so mnuchin speaks what came out of the administration was less stringent in terms of china than what had been previously anticipated on monday when we saw the selloff. this is what happened on monday. peter navarro comes out on the closing bell he speaks, the market starts to lift nce that navarro bottom on monday, the s&p 500 is up 35 points so carrie firestone, i ask you this question. the administration has always looked at the stock market closely. is this just more evidence that trump has our back >> i think it's clear that the president cares about the stock market's performance we also know that since the peak in januar

session, some the comments from steve mnuchin. mentioned them in number of times, trying to soften the 10. to have my commodity currencies? can i show you what is going on? maybe not. i can to you the story. those guys are under pressure, and that is exactly what happened in the session today. i wanted to point out more broadly the relevance of emerging-market currencies. you can see some of the out performers. energy, under pressure on the downside. perhaps it's knows apprise that the south african rand, down 8/10 of 1%. that as we've got the pboc cutting rates. joe: on commodities, let's take a look at oil and gold, oil selling off, markets still digesting last week's opec deal. oiletty big surge the friday, giving some of that back today. gold, isn't that incredible? nobody buys gold on a day like this today, but overall -- julia already hinted at it -- the bloomberg commodity index, down 1.3%. those are today's market minutes. julie: for more on today's market action, let's bring in chief strategist peter koresh. something i f

there is no question this is a win for secretary mnuchin and the advocacy he has been pushing for.n terms of what david was saying is,t cfius and what firma in which the president is saying this bipartisan legislation that has advanced out of the senate and the house and a strong bipartisan showing rarely -- really a nonpartisan issue, that will likely end up on his desk. it would expand the scope of cfius and allow for them to go beyond -- this is a key point. right now in terms of the cfius review process, it only pertains if the foreign country has a in a u.s.take old based company. the change is happening on capitol hill would allow for a cfius review if it did not -- if it had minority stake. not just bite -- not just majority stake, now a minority stake would be able to go through the process. is chaired by the treasury secretary and made up of all the various agencies as well as the financial agencies including the commerce department. there is that criticism, but this started in 1975 and this does expand the scope. and is thethe scope latest point in ongoing trade negotiati

mnuchin said the new measure will affect any country stealing u.s. tech, navarro indicated it would focus solely on china. some of the indications from the administration prior to now is that this was about china and protecting the u.s. from some of the chinese shenanigans in trade -- >> seems those two are butting heads, mnuchin and navarro, inside the administration. >> one is more of a globalist. the other is a real china hawk. >>> ahead, the president took his shots. now late-night hosts respond. >> going to lunch? >> yeah, where do you want to eat? >> red hen? >> red hen! >> more of the late-night team effort next. thanks for the ride-along, captain! i've never been in one of these before, even though geico has been- ohhh. ooh ohh here we go, here we go. you got cut off there, what were you saying? oooo. oh no no. maybe that geico has been proudly serving the military for over 75 years? is that what you wa to say? mhmmm. i have to say, you seemed a lot chattier on tv. geico. proudly serving the military for over 75 years. you ok back there, budd

with the white house, it depends on whose star is rising or falling, steven mnuchin has a more marketriendly and measured approach approved by the white house in terms of how it looks at trade. david: we want to bring in our colleague reporting from auto what. -- ottawa, canada. this is a popular move from the canadian perspective? >> very popular, every once -- everyone wants justin trudeau to fight back. trump is not popular in canada. escalates, thet canadian the connie could take a hit -- the canadian economy could take a hit. in principle, people like the idea of retaliating. shery: the foreign minister said weada will not escalate but know there are other issues pending between the u.s. and canada, including potential auto tariffs by the u.s. and nafta, could this change? >> absolutely. it is open to whether donald trump considers today and escalation. canada says this is just a dollar for dollar response but if donald trump thinks this is raising the stakes, a lot of people say these tariffs will not have that big of an impact on inflation, canadian growth, but if it comes to t

mnuchin say the trade war is on hold. he was contradicted by other members of the administration. i think the tweet doesn't change my mind at all that the trade war is escalating. it's putting it markets more on edge. the vix is rising and is close to 17. the others are picking up steam. what do you do in environment like this where it seems fractured? komal: that's a great question. i did a piece recently for bloomberg opinion saying this is how it unfolds. littlede wars cause very ripple in equities or bond market. over time, it's very negative for equities and is going to be extremely bullish for u.s. treasury. in terms of where this is headed, even more than u.s. treasuries, see what has happened to the german bund. the yield was 60 basis points. today, it is 72. i think as this continues and you have more confusion on the trade front, this is going to accelerate. at bloomberg, we had this big feature and you have been talking about harley davidson and the move over the loss of jobs to the united states. a secondary impact of trade. , it we learned from history takes a couple

mnuchin said such rulings would imply to any country that tries to steal u.s. technology. have begun to credit whether their economy can withstand a showdown with the u.s. carefully worded essays irculated on china's internet. malaysia's embattled state investment fund has named a new hairman. e will oversee government vem. he financial statement through 2010-2012 can't be relied on. global nudes 24 hours a day, on air and on twitter, 2700 journalists and analysts in 120 countries, i'm paul allen. this is bloomberg. haidi: thank you very much for that. it is not looking great out there if you're a bull. let's take a look at how we're fairing in the asian market with sophie. sophie: investors are going for duck and cover. stocks are set for the lowest several since october. the nikkei headed for a third day of losses. weighing the are most and the bottom doesn't yet seem to be in sight. as the chinese comp heads toward a bear market. the worst is yet to come with a 10% drop likely from here. oks like policy makers -- is falling on deaf ears. over in hong kong, the hang seng

today mnuchin said there was an unanimous vote >> how has all the trade turmoil over the past numbermonths played out in the markets? steve liesman has taken a closer look at that. >> the administration has created head spinning turns inspect market we looked at all the 1% moves. let's look at the negative ones. these are moves of 1% or more to the downside in the dow. there have been 17 this year i'm hiding it -- i'm goingo reveal it now. eight ha been because of trade according to most major news sources. about half of related to trade moves. that cost the dow 258 points i'm sure the administration knows about the effects. what about the upside, the 1% or more moves to the upside 19 this year 5 have been related to trade, according to major news sources adding become 2 ab 122s. not quite even today may not en in our universe that we look up because it is not a 1% move. it's intng sarah because more and more you hear people say these are not negotiating tactics these moves by the president this is what the president wants to have happen at some point you are going to lose the abilit

ross,larry kudlow, wilbur steven mnuchin? >> donald trump. david: when does that confusion infect the market? >> it already is. everyone is expecting any nafta deal will be pushed to 2019. of goal is to get this ahead u.s. elections in the congressional window that paul ryan had flagged ahead of the mexico elections, which are increasingly likely we will not get, so snowballs this confusion and uncertainty and lack of a deal. alix: thank you both very much. coming up, more on next week's ecb meeting, bonds declining and the euro strengthening after potentially a hawkish signal from the central bank. what it means for assets. with bostonuss that private wealth's ceo. this is bloomberg. ♪ ♪ alix: breaking news on twitter, down 2%, the company will offer $1 billion in convertible senior notes. they will do it in the private placement to certain institutional buyers. can are convertible so they be converted into equity at some point. they are looking to give initial purchasers a 30 day option to purchase another $150 million in principal amounts

in comes steven mnuchin who says that report is completely false. he says it's notrue and later on this week we will talk about these restrictions, but here is the key. he said that it's not specific to just china. it's going to be specific to other countries, so if you go back and you look at the investigation that washington put in place to look at whose stealing ip or intellectual property it's not just china on that list. there are 12 other or 11 other countries on that list. some of the countries that could be stealing intellectual property from the united states are argentina, china, india, canada, indonesia so the list continues on and that's what's worrying investors that possibly the united states is not just goin to go after china. they're going to go after other countries. china though is not backing down you had the president xi jinping in an event in beijing last thursday. he spoke to a small audience of about 20 executives of multi- national companies in europe as well as the united states and he said that maybe in american culture and

mnuchin and the president getting this across the line, making this happen. because of their activities, they've made it viable for us to have optimism and be excited about the future. let's talk about marlin in particular. we've hired 20% more people. one of them is josh behind me. he's a welder. since he was hired, he's bought a car, he bought it and moved into a nicer apartment. his life has changed. in february, his paycheck actually got bigger, because he gets more money. he saves more money because the taxes are less oppressive on him. but this isapngith our other employees that are getting opportunities to get pulled out of poverty and move into the middle class. also, we've heavily invested in new equipment. when secretary brady said that we're going to be able to instantly expense new equipment, a gun was shot, and all american manufacturers' ears perked up and we went at it. we started buying the best equipment so we could slay the competition. if we give josh and his teammates at our factory great equipment, they could beat china. they could beat g

trump, steve mnuchin, or xi jinping?ning -- .> good morning, manus and anna the names you have listed are at the top of the agenda. what the markets are focused on his trade. weakness coming through following the losses we saw yesterday. what is interesting in asia is we have seen much of the downward pressure focus on south korea with the cosby lower than i lower by more than 1%. also, the shanghai composite deepening some of its kick lines -- some of its declines, off by 2/10 of 1%. chinese equities have been in focus with the offshore yuan still under pressure today. if we put this in context, because we keep harking back to the 2015 devaluation, over the past five months, we have seen the shanghai composite lose almost $2 trillion, but go back to 2015 and that was more like $5 trillion. to put that in context, at least in the equity space, it is not quite like 2015. take a look at what is happening in fx. the south korean won is one of the worst-performing major currencies. the new zealand dollar is the worst-perform

steve mnuchin said he is expecting a big number. so what will it be?ckbuster quarter for growth and what is next for the dollar. still with us is our guest. first of all, dollar dynamics. it is what emerging markets and the fed want to know. where do you see the dollar going from here? one .15 has been the level -- 1.15 has been the level people have been focusing on. we forcast at 1.14. there are risks to the downside of the euro. ecb, that is dialing down on its rhetoric on monetary policy tightening. the u.s. growth story is entrenched. we know growth is strong and the is what markets will focus in on. francine: is the trade war inflationary or deflationary? kamal: in a trade war environment, tariff war's high prices and that should be inflationary, but it is not part of our core scenario. we see core inflation heading around 1.8%, 1.9%. that should keep the fed on course for four hikes this year. of itself, be a support for dollar sentiment. emerging markets have pretty much held it together. some that have had to preempt the move. what happens fro

. >> president showed off hockey knowledge giveing a shout out to mnuchin deluge bulldogs that i'm sure he's a big fan of. >> congratulations to the bullgs on winning the ncaa championshipockey tournamen tournament.wow, that's a big de. righting in this areap athis is where they play right. >> okay so while you're enjoying world cup on "fox5" you should be thankful you're steeing here iolthed old usa and we have the first amendment here a d russias not. one politic an propo bill to make it illegal to criticize russia soccer team. illegal. the bill would find anybody verbally tourmenting the team find. our players are ours regardless of how good we are and here idiots spil them and maybe fun of the moves if they lo we sh blame those that instawlt salted our eyes. >> they're headed to world cup pro notion rawshia. they weroffering money and free food to russian women if they got knocked up b world cup annual lights offering $45 d and free whoers for foranif life. it was ensuring futu success of the nag as team. >> it says promotion turned out to be too insulting. that's treme >> all right

steven mnuchin said he had donald trump. steven mnuchin said he ha d co nveyed donald trump.hat he would continue to. donald trump for the weekend has been tweeting about trade, even this morning calling out what he calls unfairand morning calling out what he calls unfair and jupiter trade. so no light at the end of the tunnel for the european prospective —— unfair and jupiter trade. thank you for joining us. —— stupid trade. here in the uk, legal action is being taken against three delivery firms used by amazon. the gmb union wants the drivers to be classified as employees, rather than self—employed, and given guaranteed hours and the minimum wage. mary—ann russon is covering this for us. the union is saying that these amazon delivery drivers should not be cast as self—employed workers rather that as full—time employees. they basically say that the reason for this is that the amazon delivery drivers work a huge amount of hours, however they are basically paid per parcel and they are responsible for their own insurance and maintenance of the van and they don't receive any of

thank you, mike, for joining us along with secretary steven mnuchin, secretary ryan zinke, representative barletta who hopefully lou barletta will be your next senator from the great state of pennsylvania. [applause] it is a great state. representative mike kelly. thank you, mike. great to see you. i want to take this opportunity to explain why young americans stand for our national anthem. maybe it's about time that we understood. we stand to honor our military and to honor our country and to remember the fallen heroes who never made it back home. we stand to show our love for our fellow citizens and our stando pay tribute to the incredible americans who came before us and the heroic sacrifices tmade. america's a great nation, a community of family, and america is our home and we love our home. and our country has never done better than it's doing right now. never. record numbers at every outpost. you take a look at what's going on. lowest unemployment numbers we've had. lowest african-american unemployment in the history of our co lowest hispanic numbers in the history of our country. l

. >> -- [inaudible] there's some reports that secretary mnuchin pushes for some changes with canada? >> i'm going to leave that t the meeting. >> you mentioned the president will be having a bilateral during the g-7 with canadian prime minister trudeau. how would youribeel t now between the u.s. and canada? are they better than have existed in prior administ a wors tave eed prior i d want to make comparisons with prior administrations. >> [inaudible]. >> jt between us. i get it. i appreciate it. look, president trump talks to prime minister trudeau a lot and inues to do so. i think the bilateral meeting that's scheduled between the two is a really good thing, and i think they will walk through a lot of these issues. states andan will remain firm friends and allies, whatever short-term disagreements may occur. so i would say relations are very good, yes. >> what are the prospects for nafta being renegotiated this we're still talking. communication lines are open. i don't want to make a prediction everyone is still talking. yes? >> yes, sir. could you talk a little bit about>> sorry --

there is the larry kudlow faction and the steve mnuchin faction that are more globalists , and there is the more conservative wilbur ross faction. who will come out on top is playing out before our very eyes. shery: i am confused. david: you are not the only one. [laughter] shery: nafta much be approved by congress and paul ryan said there was a deadline of i believe may 17 but we are past that. >> there is broad consensus that any new nafta deal could not be passed before the next session of congress. there is not enough time. anything they do come up with will have to wait until after the midterm elections. that could turn out to be problematic if the house is able to overturn the gop to democrats. shery: this overhaul you mentioned, there is legislation and secretary mnuchin backs the legislation, instead of executive action, especially with chinese investment. >> that is the reporting we have, steve mnuchin is supportive of the legislative route, rather than executive order that would freeze zte to buy u.s. equipment. a national security concern. this is the factional's asian --

seems like the trump administration has backed away from the navarro view and has gone towards the mnuchiniew. >> or the kudlow view. >> and so that would be better, but even if that sort of more moderated scenario, you're looking at 2019 of taking 0.6% off of growth for gdp in the u.s. >> if we get it. >> if we get it. >> last night trump said our trade partners will come to us say let's work it out, we'll make a deal, everything will be fine the crowd roared he got approval by saying it would be okay. >> yeah. saying it's going to be okay and having it be okay are two different things the fact of the matter is that we're dealing with countries that china will retaliate. it will almost certainly retaliate. if you look at what's happens with nafta, mexico retaliating you're talking about countries with a long history of conducting trade war that's a challenge >> china's schtick is relatively small. china punches above its own weight because the overall economy is big, but the per capita of economy is not that big. average income is about 6,000 u.s. dollars and they don't buy that much stuf

thank you, mike for joining us, along with secretary stephen mnuchin, secretary rines inky, representativet state of pennsylvania. [applause] a great state, representive, mike kelly, it's grt to see you. i want to take this opportunity to explain why young americans stand for our national anthem. maybe it is about time that we understood. we sent to honor our military, and to honor our country, and to remember the following heroes who never fallen heroes who never made it back home. we stand for fellow citizens in our magnificent constitution. we stand for the incredible americans who came before us in the heroic sacrifices they made. america is a great nation, a community of families, america is our home and we love our home. our country has never done better than it is doing right now, never. record numbers at every outpost. you take a look at what is going on, the lowest unemployment numbers that we have had. the lowest african-american our country. in theto the lowest hispanic numbers in the history of our country. the lowest numbers for women in 21 years. we have created $7 trillion o