this is true of steve mnuchin. a lot of people thought, we are staying away from steve mnuchin.e is a guy from wall street who worked for goldman sachs, in the hedge fund business, and opportunistic, with a philosophy about jumping into things. he jumped into this and landed as treasury secretary, a really important job. when you look back at the people who have had that job, tim geithner, to follow in those footsteps is really something. carol: it is about controlling economic policy. being treasury secretary is different from what we have seen in the past. conceded some responsibilities and taken on others. devin: that is the thing. the treasury secretary's people consider great, they were people who were able to dictate economic policy. i.e. the u.s. president. steve mnuchin said, i think the president listens to me. sometimes he agrees. sometimes he does not. that is a lot different from bob ruben. people think he was largely responsible for the economic prosperity during the clinton years. hank paulson, bush let him handle the response to the financial crisis. at that point

mnuchin is still there. jason: let's go back to who steve mnuchin is.his is a guy who was largely unknown, not out of central casting based on previous administrations. where did he come from? devin: there are a lot of people who wound up in these three -- these very important sets of positions in government who would not be there if it had not been for donald trump. a lot of people thought, we are staying away from steve mnuchin. in a lot of ways he is a guy from wall street who was in the hedge fund business, and opportunistic, with a philosophy about jumping into things. he jumped into this and landed as treasury secretary, a really important job. when you look back at the people who have had that job, tim geithner, to follow in those footsteps is really something. carol: it is about controlling economic policy. being treasury secretary is different from what we have seen in the past. devin: that is the thing. the treasury secretary's people consider great, they were people who were able to dictate economic policy. steve mnuchin said, i think the pre

even mnuchin says he does not always listen. you were cast with putting treasury secretary mnuchin on the cover. what did you pull together to do that? >> we were thinking a lot about how to show him on the cover. he has a job that involves all the chaos at the white house. he has to deal with personality and keeping his job. we wanted something that drew attention to that. evolvedow did the cover in terms of the words and pictures? line, we had this "everything is fine -- how to be --mp's trade secretary treasury secretary." it is kind of a mantra. everything is not fine. you have this photo with him looking stressed out. a powerful image of someone who has become a familiar face. but interesting you take this shot of his head down rather than straight on. like thisfelt captured his internal struggle and really got what is going on with the story. jason: and the way he must be feeling. carol: it is all the cape -- places he must be keeping his head down. chris: everything comes together. jason: thank you. what elon musk might l

joel: one has to be the cover story on steve mnuchin.s outlasted a lot of people in the trump administration. a lot of skeptics thought he would not last as long. one of the things he has perfected is the silent strategy. knowing when to be quiet and not voicing his grievances in a public setting and taking them to trump personally. jason: and tesla was a story that captivated everyone. joel: you can't get enough elon musk on twitter. talking about where the money is coming from is the big question. is there money and can they do something noteworthy? this is a story we will continue to watch. jason: i love the ability to tell that story holistically. there has been a lot of tesla and elon musk over the past few months. joel: there is always the question of another elon musk story. part of that was to recognize, within the world of business, he is this overwhelming personality. but there is this larger story about the privatization of everything. carol: i think about the space issue. spacex is his private company. joel: then he says that

trump: thank you very much for being here this morning, and thank you to secretary mnuchin for joining us, and congratulations. you have done a great job. i especially want to welcome senators john cornyn, who has been working so hard lately, and especially at the border, doing things nobody else but we could do, very bad legislation. we are going to get that changed. crapo, marcoike rubio, and jeff hensley. i want to thank you all. each of you was instrumental in passing the foreign investment risk review modernization act, which was included in the national defense organization act that i signed into law earlier this month. this will enhance our ability to protect cutting age -- cutting-edge american technology and intellectual property vital to our national security. we have been reading that intellectual property and all sorts of different things of that nature are being stolen from us by other countries, and it is going to be very hard for them to do that. we have put a lot of safeguards in and are doing a lot of things against foreign acquisition of property, and especially when

secretary mnuchin: i appreciate the opportunity to work with everybody on this room. this is a great example of working together to give us the critical tools we need to protect investments in the while alsoes allowing foreign investments in the united states. the pilot program very quickly and look forward to full implementation of the legislation next year. thank you everybody. president trump: do you like all those cameras behind your head? [laughter] i would take a long time combing my hair if i was going to be in that seat. tom? senator cotton: it's a good thing congress recognizes china as our chief rival worri. against ourinate companies. they just turned down the merger with qualcomm. it had nothing to do with china, just to hurt the united states. they have been conducting espionage for years. they're just look a lot like our jets in our military. and now they are just outright buying our technology. the don't have to steal it so much anymore, especially if you have smaller companies with critical breakthroughs in artificial intelligence or quantum computing.

and later, steve mnuchin will join us.watching "squawk box" on cnbc reese witherspoon tonight dare to dream big. on friday, sept 7th, join stand up to cancer for all the inspiration all the laughter kevin heart if you change one letter in 'cancer' it becomes 'dancer', what!? all the stars tom hanks keep this movement going strong. every network every star kevin bacon dream big with us. one night to save lives get ready to see it all tune in live, september 7th 8/7 central >>> all right. welcome back tiffany just out with its earnings the company reporting a beat on both the top and the bottom lines. quarterly earnings at 1$1.17 a share. comparable sales up by 8% compared to the 5.7 % forecast. tiffany also raising their full-year outlook. they are talking about big numbers, trying to understand what's in the third quarter numbers that they're anticipating they say a lot of things they've been implementing in the plan are starting to pay off. they do say that operating margin could be below the prior year as they continue t

mnuchin's comments further escalate the spec that has rocked financial markets. the dollar and japanese yen rally. >> secretary pompeo and myself, on the release of the pastor, we have put sanctions on several cabinet members. working with you, we have more we are planning to do if they do not release him quickly. australia's central banks says rates will remain at a record low, while lamenting the local currencies resilience. philip lowe also noted the resilience in recent years and said policymakers hope that as the reserve titans, it would drive the u.s. dollar higher. italy, a large family has vowed to fight the seizure of toll assets. investors in atlantia, the infrastructure company, face major losses after the disaster that left at least 39 people dead. the company said they would protect shareholders and bondholders. world's wealthiest family just $11.6 billion richer. walmart reported strongest sales and more than a decade, sending shares soaring as much as 11% and boosting the fortunes of the walton family members. according to the bloomberg billionaire

maria recently spoke with treasury secretary steven mnuchin. she asked how the trade fight on multiple fronts could affect growth. >> we were talking about 3% growth. everyone was laughing saying that was impossible. now we are talking about getting a gdp number 4% or higher. the atlanta fed is pushing it could be as high as 4.7%. we are going to have sustained growth. the plan is 3% or higher sustained growth. as it relates to inflation. a little bit of inflation is a good thing. the fed has been for a while targeting higher inflation. one of the things we have been focused on is wage growth. great financial markets for the last 8 years. no wage growth. you can check that off the box. we now thanks to president trump's economic plan we are seeing wage growth. i think inflation will be under control, but that's something we have to be careful to watch. >> tariffs and trade according to markets and individuals look at the back and forth and tit for tat. you have been leading the charge in terms of beijing and our relationship there. you talked a

we see how steve mnuchin has learned to survive in the white house.et's get a quick check of major averages. we see u.s. stocks mixed at the moment of the dow is holding steady while the s&p 500 is up .1%. of course, we got some more up it corporate earnings especially from viacom but this is being offset by trade tensions with china and as i mentioned, u.s. sanctions against russia. we see the energy sector leading the decline, holding near a seven-week low for oil. take a look at tesla, which has given up all of the gains, 11% since tuesday when elon musk tweeted about taking this private. the big question wall street is asking is where is the money? >> no kidding or we will continue to follow the story. the gap between short and long-term treasuries, specifically what they are yielding, what it is essentially showing as part of the reason why we are seeing lacqua -- lackluster pickup at the long it is because the blue line is close to the 10 year. even as inflation fears wane, we are not seeing a big pickup. the u.s. and mexico are close to the naf

steven mnuchin and sing more measures will be taken against -- steven mnuchin saying more measures will against turkey. what do you see in the bond markets? nejra: the turkey treasury yield not doing much in the markets. the yield curve is below 25 basis points. the curve hit a fresh cycle though, heading the 23 handle at one point this week. the 10 year treasury yields are steady. in terms of how european bonds might move, we have the cash opening happening right now. at the opening at least it looks like we will be fairly steady on bonds and oat's in france. let's get the first word news with juliette saly. the u.s. a treasury secretary has said washington is ready to hit turkey with more sanctions if president erdogan refuses the quick release of an american has start -- american pastor. the lira 30 gains following the remarks while the dollar and japanese yen rallied. >> we have put sanctions on several of the cabinet members. working with you, we have more that we are planning to do. juliette: u.s. president donald trump has prodded china to offer more at the bargaining table, as t

not so much mnuchin. he feels like a creature of trump as we have been discussing.s he viewed in the wider business community? he is an important figure. he is one of the key guys when it comes to the economy there. to get someied pillars of wall street to talk about him. was louisy who did and part of why he did it was was because he was loyal to the goldman guy. look at some of the things he has done. he talked about how the strong dollar is hurting our economy and the great goldman sachs greatrman, is the prophesies are of that and for two decades, everybody believed it and it seemed mnuchin was tossing it out the window not too long ago. can't say the market does not like him, but he has credibility in the market. scarlet: how instrumental is he in the trade talks? i know he comes up time and again when it comes to the trade rhetoric and war with negotiations, and at the same time, the president sent five principles to beijing were talks end of a publishing nothing. is he having much of an effect -- end up accomplishing nothing. is he having much effect? devin:

but it is mean and treasury secretary mnuchin we have to worry about. it's investors in general. there is a stigma attached to curve inversions, end of story i agree that central bank gains over the last decades have distorted the yield curve. there's no question long end yields would be higher and even if you use three-month to ten-year which the original research that this whole issue was predicated on, it doesn't change the faskt banks have impacted long rates, what type of purchase now makes sense. and i think that's what the treasu treasury secretary was getting at but it's really going to fall on the shoulders of j. powell to communicate that should it not be affected by that inversion and keep chugging along. >> at the same time we've hit these new highs in late august on fairly thin volume in a typically attractive month seasonally how do you weigh those two factors off each other in terms of how optimistic you are? >> what the investor has to do now is weigh the potential for future growth versus the need for further valuation tincrease. i think we have increased disposa

just asked treasury secretary steven mnuchin about sanctions the president said on turkey, they want to hold a wonderful pasture and it's not fair, not

trade tensions with china and what it means to the global economy with mnuchin saying -- in a keyonds slumped meeting between the populist leaders and the finance minister about two get underway. -- in to get underway. we are up. it is a sea of green to end the week, but that is not the end of the week. we see risk appetite in the market, financials up, utilities up. tech also up .5%. telecom, gathering steam, tiny bit of red in biotech. it is risk buying, and it was about earnings again. let's look at our movers we saw. i want to keep an eye on rdf

if you look at the left of the administration, mnuchin, kudlow, they're willing to use trade tariffsto beat china but they want to get a deal done as quickly as possible mnuchin was willing to do it a few months ago one tool the administration amazingly hasn't used is wto they disparaged the wto, but they have allies in europe, latin america, asia, who would join them in trade action against china. there are nuclear options, so-called article 23, which encompasses a broad range of chinese off line actions against foreign companies. but instead they're talking about potentially pulling out. i think it is a mistake. >> bruce, who can hold their breath longer in this situation. we see some signs of pressure on china. we see very few signs of pressure over here is there any sense, any detail you've seen the past few weeks indicating one side or the other is likely to flinch? >> i think both sides are actually underestimating the ability of the other side to endure pain. i think that the administration looks at the weakening of the chinese economy but doesn't recognize the fact that he ca

so, joel, you had a great cover on steve mnuchin. the stage of what the and ministration will be thinking about as we are waiting for president erdogan, and as his rhetoric is going to be about the u.s. and turkey. joel: the inflation theme will be the want to watch. that will be the enduring thing for them to grapple with. and it is something that if they cannot get control on it, we do not know what will happen. and we have done multiple stories about this, there is this institutional problem there with the people who have been in charge of the finance ministry are no longer there. whose hands are on this wheel right now? jason: the whole idea of not being able to really fun tertwine, i -- un-in do not think that is a word. alix: hm. jason: it is friday. [laughter] trying to separate the geopolitical from the geoeconomic has got to be one of the biggest challenges of your job in this case, because as alix was saying, president erdogan will make this all about politics and about the relationship with the u.s., even while he has a ma

but it comes back to this apparent divide between steve mnuchin and bob lighthizer. billion is a key question. they have not been public about if they have that plan in beijing. that is a lot going on. do things like this divert attention from tackling the debt? >> we had a bureau meeting yesterday among the 25 most senior leaders in china. they talked about the changes in the external environment. as a result, they may take a more measured approach to the deleveraging campaign. we saw the record drop in june in terms of shadow banking. now we are likely to see a more precise approach for this debt campaign. you have potential reductions for the capital requirements of some of china's banks and smaller businesses. that seems to be the focus of policymakers. it will be a very difficult allen's to strike -- balance to strike. year.ast they recommend it will be about the same this year. rishaad: thank you, tom mackenzie in beijing. let's have a look at the trade developments in the session. garfield reynolds, what are investors making of this? garfield: investors seem t

>> we will leave the details of that the secretary mnuchin. currency is an area specifically reserved to the treasury. but that -- but it is no secret that part of the problem in terms of our trade deficit with mexico is that the peso has been deteriorating at a very rapid rate. in fact, there have been multiple year periods during which -- is even though there have been modest improvements in the minimum wage of mexico intesa denomination, there still is an actual decline in mexican worker wages in dollar-denominated terms. so it is a significant issue. it is not that we are accusing mexico of being currency manipulators. that is not so much the point. when hedge funds want to hedge against emerging-market risk, about the only currency that they can do in big size is the mexican peso. so it is under pressure from time to time for reasons that don't have much to do with mexico. the other thing is mexico does have a substantial trade deficit. its trade deficit annually would be -- with the entire world, despite the surplus with us, is over $20

washington turned up the heat with secretary steven mnuchin and warning about additional sanctions ifastor is not released. the queen of soul early the franklin has died at the age of 76 after a battle with cancer. she incorporated black church music, blues and jazz. it spoke to the younger generation. she became the first female inductee in 1987. in 2008, rolling stone named aretha franklin the greatest singer of all time. will avoid a damaging strike. offer with complete satisfaction. union reached the an agreement after three months to avoid a be pat -- repeat of the strike from last year. oil could make australia a target for buyers. off got lucky well drilling the coast of western australia. 150 million barrels of crude. it has some of the largest gas reserves. investors have grown immune to economic and geopolitical bad news, which has traditionally driven demand for gold as a safe haven. that is why it has slumped to a 19 month low despite the u.s. china trade tensions and the crisis in turkey. strengthened as the fed prepares to hike again. we will talk more about gold and hav

the first that was briefed by secretary mnuchin within the last week on talks to china that mnuchin wantsprogres and wants to move toward a deal and he's not feeling the intensity and the pacen those talks to really move forward. the u.s. does have two tariff deadlines coming up in the coming weeks and administration officials say there's no sign now backin down those. the nafta talks sounds like we're closeith a deal with mexico. the incomingf president mexico says the talks are near clinching a deal. u.s. and mexican officialbill, will be holding formal talks herersn washington on ty, but there are two questions about that agreement. bmber one, howad is it? does it cover all principles that the companies are talking about and one portion and that portion is auto manufactung. that's o question and the second is how do these countries plan to convince canada toome back to the table? trilateral this is a deal and there are three countries that would need to be involved. kayla tausche in washington. thanks for joining us tonight. ve elsewhere in other news today, federal res policymakers be

that's all this is about >> mnuchin yesterday told my u.s. cnbc colleagues that negotiations with china on trade can't just be talk there has to be follow-through are the discussions with mexico, canada, europe, essentially irrelevant and the big conversation has to be between washington and beijing >> that's the big -- certainly from our perspective, that's what we care most about, what happens out of china >> i want to ask you, there's all this uncertainty about the trade disputes, the possible resolutions. there's no clarity yet, though it seems markets are responding positively where in the emerging markets world -- you talked about north africa, east africa, can you be more broad than that vietnam, indonesia, what other countries are you looking at for potential growth >> the work we've been doing is trying to work out what creates takeoff. at what point do countries stop growing at 3%, 4%, start growing at at7%, 8%. first is literacy. you then have to have electricity. so we've done a big report this year about that. it is indonesia. it

steve mnuchin. the treasury secretary scott gottlieb i spent the weekend reading that interview in the "wall street journal," weekend "wall street journal" with the fda commissioner he's like the -- a lot of people on both sides of the aisle think he's the best one we've had. good guy practicing in internal medicine. and spent time at the fda before, too. >> yeah. you know, you think you have all these answers on how to handle this stuff, you look at all the different ramifications, and you need someone that is considering all of these things. it costs money to develop drugs. the first one gets to market, then the people with the second one, a lot of times they don't develop another one. it stays as the only one on the market you prevent something ordeal with a chronic condition, it might be worth a little bit more money on the front end than having all the hospitalizations. it's nuanced we'll talk to him about that >> of course >> that's about it good to see you there. wilf is here with us today >>

steve mnuchin says the u.s. is ready to slap turkey with more sanctions if president erdogan refuses to release an american pastor. and nvidia could get chip stocks a chance at redemption. >> wal-mart rebounding. posting the best quarterly u.s. sales growth in a decade, fueled by major grocery business, spending shares -- sending shares soaring. climbing close to that $100 per share mark. where do you see shares going? >> we think the shares are pretty fully valued at this level. it is a tale of two companies. the u.s. business is performing amazingly. have turned team the company around. the challenge about the equity is the investing they are doing in e-commerce. they're going to close flip card in about the next couple of weeks. they lose one point $5 billion. their own business in the u.s. continues to lose money. the losses are going to be more than anticipated. that is the challenge looking at walmart. we have this great supercenter business. then we have these losses on the others died. -- on the other si

tuesday morning we got word of back channel talks between treasury secretary mnuchin and the chinese government but then after the market closed, we learned that the white house might be upping the stakes in the trade war. that combined with a zero sum nature of apple's success as a it romps toward the trillion dollar market cap defined today's mixed session. first, let's do some stipulating. while there are free traders in the trump administration, including chief economic adviser larry kudlow and treasury secretary mnuchin, their free trade rhetoric does not extend to china adds things get more grim for the chinese economy, which is exactly what's happening when you look at the data, you better believe the president wants to accelerate the process in order to force china to open up its markets. that's why trump is weighing whether to increase the suggested tariffs with a billion dollars from chinese imports from 10% to 25%. now the president has two advisers, mr. outside robert lig hauser and mr. inside, peter navarro. these guys are definitively not free traders [ buzzer ] they be

steven mnuchin is mulling more sanctions on turkey as it refuses to release an american pastor. president trump headed to new york for a roundtable. 90 minutes into the trading day in the u.s. stocks lacking clear direction. >> the turbulent week weighing on the major u.s. indexes with the dow jones holding onto a big mover walmart's yesterday with better than expected earnings. s&p 500 bouncing between gains and losses, nasdaq down, nasdaq 100 down further. poor earnings report with some semiconductor stocks. a first -- over 8% after elon musk gave a tearful interview to the "new york times" where he said nobody reviewed his tweet where he said he was considering taking tesla private and sleepless nights were behind some of his tweaking binges.weeting saying he was under a lot of stress. earnings for a company where they sell -- solve the customers cutting back on new orders on chips. crypto'. let's look at the chart. data virgins between -- the divergence between chip stocks and the nasdaq, nasdaq 100, it is growing, to the detriment of chips stocks. investors are instead gett

>> i spoke with the sick -- with secretary mnuchin about it. i can't say anything about it, i cannot speculate, but my mantra is talking is always better than not talking. we have not had a sit down with them in quite some time at any level. who knows? it has to be a good thing. >> if you are not involved and the secretary -- the treasury secretary is not involved, how should we characterize this? >> we are always involved. -- is a smart guy and he will lead our team. deputies, iteople, is the trade team if you will. delegation,nging a maybe one spot below the top top . this is good. talking has to be better than not talking. >> why did the president way to lists ife steel tariff they are for national security? >> they are not connected to that story. i think that the president is dissatisfied with turkey on trade. these steel and aluminum tariffs are subject to constant negotiation with respect to the tariff rate or the quantities. i think he wanted more and their response has been inadequate. >> and yet he did not do this until both he and th

secretary mnuchin: sir, we're doing well. as you know, we were very clear with our counterparts there -- both secretary pompeo and myself -- on the release of the pastor. we've put sanctions on several of their cabinet members. working with you, we have more that we're planning to do if they don't release him quickly. i'll also just comment on the rollout of the iran nuclear sanctions is going extremely well. we're working closely with secretary pompeo. strongest sanctions in preventing things there. and continue to be very focused on implementing the tax cuts and jobs act. just rolled out the pass-through regs -- lowest rates we'll have for small business and pass-throughs since the 1930s. and a big part of -- the the president: great. secretary mnuchin: -- what larry kudlow talked about, in terms of the economic growth. the president: great. good. thank you. great job. thank you very much. secretary wilkie, so we got choice passed for our vets so our vets don't have to wait on line for six weeks and end up with a simple con

treasury secretary steve mnuchin wants to make a trade deal with canada but if not, he expects congresso approve the agreement he just reached with mexico. president trump spoken to trudeau for productive conversations on trade. president trump is accused of google of rigging the -- he say only negative stories come up in a google search. he calls it a very serious situation that be addressed. google denies that the results are biased. north korea is warning the u.s. that denuclear sedation talks are at stake again and may fall apart. crorg to cnn, that warning came to michael pompeii hours after he was scheduled to leave for om yang. the "wall street journal" says manafort's lawyers held talks with prosecutors but couldn't settle the charges. manafort was convicted of bank fraud last week. this is bloomberg. vonnie? vonnie: thank you. coming up on balance of power, wilbert ross joins bloomberg tv and radio. that's at 12:00 p.m. eastern. this is bloomberg. ♪ ♪ romaine: this is the european close on "bloomberg markets." vonnie: a look at some of the business business stories right now. b

of turkey saying we will nevergive in, and president of turkey saying we will never give in, and mnuchine treasury secretary, says they have other measures waiting. and the turkish government will introduce, with the new finance minister, new measures to reduce inflation, which is at about 16% at the moment. these fiscal measures it hopes will work, in terms of at least steadying things. we had a brief respite overnight for the lira. how long that lasts, we don't know. but i think it will have to be somebody coming in between the two backsides to say this is silly, and somehow... 0r to say this is silly, and somehow... or it could be turkey walking up to the imf, captain had. it happened to argentina and they swore it would not happen again. i don't think we are yet they are, with turkey having to go to the imf, but somebody has to go to the imf, but somebody has to break the logjam, and yet these are two to break the logjam, and yet these a re two nato to break the logjam, and yet these are two nato allies. and the interesting thing about turkey, i suppose, is the fact there is so much

one left out at the moment is canada and secretary mnuchin addressed that moments ago on "squawkbox."> the u.s. market and the canadian markets are intertwined. it's important for them to get this deal and it's important for us to get this deal. i think we'll be successful, again, if we don't we'll move forward with mexico and then we'll reach a separate agreement with canada. >> guys, cutting short the trip to europe to get to d.c. and get to the table mnuchin said he doesn't anticipate there are going to be a lot of sticking points between u.s. and canada. >> i guess pretty encouraging. it feels, in general, in market terms that the stakes have been lowered on the trade questions in the short term. it just seems if there's a process in place in terms of the nafta partners china leaves but without any add on aggression. they're talking about encouraging moves by the chinese to support their currency. i think right now the market is in the mode of the upside is the path of no resistance. literally. we're at new highs it's upward drift because not much has changed along that front. >>

mnuchin saying we have more, more sanctions that we are planning to do if they don't release him quickly. so clearly, the united states side is thinking about more sanctions on turkey if that pastor is not released quickly in the words of the secretary of the treasury back over to you guys. >> a remarkable moment watching our former colleague there addressing a cabinet meeting on the economy a real debrief there. thanks one of the reason for the rallies and talks with coin back on kayla taush is in d.c. >> reporter: i learned the talks will take place next wednesday and thursday ahead of those talks, treasury is said to be reviving a list of eight demand it made in may. at the time they were cutting the deficit to stopping intellectual property theft to swallowing u.s. debt without retaliation. it's unsure what china will be table in washington next week. it will be led by vitaminsters of finance and examiners they will meet counterparts led by secretary david malpass, previous talks were held at a higher level but we will see whether these talks ends up bearing fruit. white house econom

mnuchin said?nterview with cnbc today, he said he's basically fine with the flat yield curve. in fact, the words he used were not at all concerned over the flattening yield curve. remember, this happens since the yield curve hit its narrowest in 2007. yes, as fried as going viral, peakedtly the searches on wall street. it is gathering a lot of what's going on here, right? probably in large part because every recession in the past 60 years was preceded by recession. let's take a look at a chart from our bloomberg library. spreads from to your notes to 10-year note. once you invert, that is a powerful signal. an inverted curve. you can see inverted curve recession, inverted curve recession. it got very flat. it's interesting in the midst of all this that the federal reserve, many officials are giving us all kinds of reasons why they really do not have to worry about it. they are not ignoring it. let's go back to the bloomberg library now. i want to show you another chart . here is the yield curve. ar

kevin: you have people like larry kudlow and steven mnuchin and, who argued for one set of policies, a bit more globalist in perspective, and then you have peter navarro, who have argued for a more national perspective with regards to these types of policies. according to the reporting i have done, i form the conclusion that i am a bit skeptical for traded as a battle internally in terms of entry, but i think it betweenof a compromise the competing factions and it is a new coalition of the republican party indicative of the modern trump era republican party since he has assumed office. in terms of where this is headed , trade, trade, trade, and the president is stickiest as well, on these deals. vonnie: to change topics, we got notification of changes in fuel economy standards. what exactly happened today? kevin: the president really going to work with the california governor jerry brown, a potential 2020 challenger. california officials are saying they are going to push back against the federal government and do a lawsuit against the federal government. they feel this is a brazen, t

representatives for steve mnuchin and the chinese vice premier are having meetings on how to get thealks back on. this is according to people familiar with the meetings. this is ahead of the next wave of u.s. tariffs on an additional $61 billion of chinese goods. let's get straight to the bloomberg reporter who gave us this scoop. tell us, what do we know? jenny: we know steven mnuchin's team has been in touch with their chinese counterparts to figure out how to get the stalled talks back on track. we know the two sides have not talked since the first round of tariffs was imposed. since then, we have seen them upping tariffs tit-for-tat on both sides. we also know there is internal discussions going on within the u.s. cabinet whether or not to have the talks and went to have the talks. who should have them, and where they should take place is also on the board. they are talking about logistics and that what point or whether or not the u.s. and chinese presidents get involved. you might recall there was a time before when the two sides talked and they thought they had a deal and they

theetary mnuchin now saying u.s.eparing more sanctions for turkey over the detention of pastor andrew brunson. of course we had heard from the white house earlier that they were going to keep the tariffs on turkish goods regardless of whether or not the pastor was released. how we are hearing from secretary mnuchin that the u.s. is preparing more sanctions on turkey over the detention of andrew brunson. of course we already know that u.s. sanctions are already targeting turkey's minister of justice and the minister of the interior. now we are hearing they are preparing more sanctions are the a little oft curve it strengthened it is still gaining ground. let's go back to former secretary of education arne duncan. thank you for hanging around. there now headed into midterms, just a few months away. how important is it for people to actually think of education and vote on education and they go to the polls? arne: it is a game changer. regardless of politics, ideology , if we as parents and citizens vote on education, th

>> i think mnuchin, if it was up to him, there would be no talk of this.his rattles world markets and i don't know if this would help trump voters. they benefit from cheap imports, from t-shirts from china, from everything and they may not realize that the wto and based in geneva is helping them out and trump is not teaching that lesson but i don't think the republican senate would allow that to happen the republican party was built on free trade. trump is trying to mold it in a more hop lipopulist fashion that's not easy. >> there is one person who is sort of left to talk up what the president may or may not have meant every single day, that's the steady hand out there, at least in person every day, it's sarah huckabee sanders do you think there's a chance she simply gets burned out and leaves that would be a big blow to the white house. >> i think you can't expect a white house top staffer to last four years so she has done the best she could. her reputation is much better than sean spicer, who had left under a storm of controversy where his credibility

carney: i have a lot of respect for security mnuchin.s made it much more coherent package and effective package. we had a broad ranging theussion not just on global economy, but on the trade environment and particularly andnd trade and services potentially financial services. it is an important time for all of us to keep talking and to states,out the united extended by the treasury secretary and the fed's efforts, has major metas reforms to their financial system, as has most of the g20, including the u.k. the challenge or opportunity is to take full effect of that because the quality, the resilience of these systems, has gone up so much that there is a lot more we can do together. certainly the bank of england, u.k. writ large, are committed to having an open system with the united states, and ideally -- and this is an important part of the brexit negotiations -- continuing with europe appropriate to the new relationship. david: that was bank of england governor mark carney speaking with our very own francine lacqua in london a short ti

>> there were a lot of billionaires, ceos there, members of the administration including steve mnuchinwilbur ross, and donald trump's own chief of staff, john kelly come also attending. it was in the hamptons over the weekend. david: i want to ask you to get inside the president's mind and tell us what he really meant, but talk about the three groups he could be talking to. the people who are there, they like cheap money as it were. the fed itself, and finally the voters, who might be voting for president trump where his candidate. how will those three react? will probably prefer cheaper money, because it means mortgage interest rates remain low, consumer -- like small businesses will have more access the capital, that is sort of the combination that will help grow the economy, especially with tax cuts coming toward individuals and consumers. as far as businesses, it depends which business you are in. most, especially in the steel and aluminum industries, manufacturing, they prefer lower rates. what is interesting is we are seeing almost a quart needed effort coming from donald trump h