and china as stephen mnuchin prepares to meet the chinese?ichael: there seems to be a feeling out of each other's and perhaps a new respect from the united states and the trump administration for the chinese position. it may be that people have explained to the president that they cannot just tell china what to do and they are going to have to negotiate. the chinese is the second biggest economy in the world and the biggest economy in asia. a much moreably be friendly gathering than one might have assumed from rhetoric on the campaign trail. that is international economics and policy correspondent michael mckee for us in berlin. you can hear the news conference between stephen a neutral and at 5:00 p.m.aeble london time. we will take that conference live. a confluence of events, from the defeat of communism -- help to make -- here to help us make sense of it all is the bloomberg markets reporter, three wonderful charts. we will dive into the first one. is whatnce crisis, this is underlying everything when we talk about the eurozone. this is t

stephen mnuchin has only been in office a couple of months.an finance doesn't have ahe mandate yet to sit down and negotiate. towardsrrison was kind steve mnuchin and said he performed well and met a lot of people and had constructive ideas, however the eu minister for economics and finance had this to say about why ultimately anti-protectionism has to be on the agenda. >> we all shared the view that trade, fair trade, has to be shared to take on board globalization that trade is good for our economy and protectionism cannot be the solution. china's news agency also reported a positive development. the finance minister of china and stephen mnuchin agreed to economic cooperation that is more effective and efficient. bottom line everyone saying they will have to wait until july, the next summit of the g-20, in order to make real progress, real negotiations on the question of trade and a new approach to it. a lot of people talking about this new america first position for donald trump opens the way to trade to taunt and other parts of the world.

stephen mnuchin has been clear we want for trade, not only free trade. so they drop a certain line in their communiquÉ and this is the first time his counterparts are meeting with him. >> it's important to highlight. even wilbur ross is highly that it hasn't been a two-way street. they are attacked at an extremely high rate for countries are protecting their own interests. their products could be sold above ours. that is a big issue. trade has evolved as we've seen, so why don't we have that can update our trade pact. dagen: this could rattle markets then all went to other things. the 10 year treasury is now higher than the yield is higher than the dividend yield on the s&p 500. the big front page story and also small caps have been underperforming this year, which is a sign from some investors that the trump agenda is on the run. maria: that was the first area for marcus to take off. dagen: election day and end of the year. >> the most important thing to note is that signaling robust growth happening because janet yellen even said that last week. dagen:

in this case, the german finance minister said it was clear that stephen mnuchin did not really haveate to sit down and do detailed negotiations you need to do on trade if you want to make a change at this kind of g-20 meeting him about the team has not been in place long. australia's treasurer scott morrison said stephen mnuchin met people, talk to people, performed well and was constructed, so he gave steven mnuchin a bit of a thumbs up. the eu minister for economics and finance though said ultimately that there has to be an agreement that protectionism does not work. >> we must all share the view trade, has toir thehared, to take on board losers of globalization, that trade is good for our economy and protectionism cannot be the solution. >> some good news being reported that china's finance minister and secretary mnuchin have agreed on economic corporation, making it more efficient and effective. it looks likeugh g-20 officials will have to wait until their july 20 meeting to hammer out issues because they ran out of time and had to go home. mainly the trump team, there was a sen

treasury secretary stephen mnuchin is optimistic about president trump's tax plan. told neil cavuto that reform package could come in the next few months. >> or object is to pass tax reform by the august recess. that's a very aggressive timetable, but realistic and something the president and i are committed to doing. >> i august, voted, done, agreed. >> and signed. nicole: president trump said his economic hand is working on historic tax reform. nicole: that interview is helping the less stuff yesterday. maybe that will continue today. let's get too caught up in the global market action. the nikkei in japan have not there were at the composite index came under pressure. we've also been seeing europe with the paris this morning and can generate to watch the dow futures just hovering around the unchanged line at the 1000 mark. lea: u.s. stock market futures rather flat this morning after a huge rally yesterday. dow futures higher by eight. s&p higher by almost two nsa feature fractionally lower. oil and gold this morning. right now we've been seeing for that 5340 a ba

germany and that trade agreement, we have to remember that stephen mnuchin yesterday saying publicly at this administration does not want any trade wars. it might put him at odds with the likes of people like peter navarro. when you listen to secretary mnuchin or secretary ross, they are clearly signaling that they are willing to have these negotiations with foreign leaders in terms of working with them. the fact that china has been labeled a currency manipulator is further evidence that this administration, while having that difficult tough talk on they are still willing to bring them to the table. that is why you're seeing people of them out and head scene, and that is a new development. because the previous global leader summits we have seen in this white house ahead of foreign policy leader meetings, such as with the japan prime minister or even chinese global leaders coming of not seen these companies at that meeting. that is a new development at the 80, and a new signal from the white house to the germany administration that this president has been critical on administration and

stephen mnuchin's testimony, they ask him about dodd-frank him and he did not seem like he wanted tor the entire thing up. some of the language from some of trump's official seems to be not quite as extreme. >> gary cohn see some value in dodd-frank, while criticizing others. these are wall street types you don't like heavy regulation. i want to get into the general concept here. there are two approach to financial regulation. the democratic approach is basically you regulate. these firms screwed up and brought the world into a financial crisis, and now we need to supervise them very tightly. the republican approach is that is what markets are for. we can harness the free market by getting shareholders to discipline their unmanaged and's, and the way you get shareholders to have a bigger stake is to have higher capital standards. that is the difference between the assets and liabilities. the leading bill that is in the house belongs to the head of the house financial services committee. it gives firms and offramp from some of the supervision at the largest firms if they have a high l

this comes on the heels of the meeting with stephen mnuchin on monday, reportedly janet yellen as well report has been denied. definitely something to watch. let's look at commodities. not much happening on oil and gold today. bit, the safettle haven selloff. aluminum had a good day, reports china is curbing production to deal with pollution, so perhaps a supply cut coming. taking: perhaps china the lead and pollution controlling. those are today's market minutes. we want to take a deep dive in our bloomberg. here is one metric i am paying attention to. ism manufacturing report from the headline number was better than expected. 42% of factory purchasing managers of said orders were better than february come up than january at 32%, so a big move. , there you go,l that shows 26% of purchasing managers are reporting rising order backlogs the highest since may 2015, a sign production will accelerate. the data is looking pretty good then. i have a chart that speaks to the same phenomenon of the data. a bloomberg strategist sent this chart around earlier, saying this chart is so sexy it is n

that we have which is the blueprint from the house ways and means committee, you know, you had stephen mnuchin less complex than health care. the border adjustment tax needed for revenue raising and significant opposition to that, and not to mention the lack of a trillion dollars in benefit from the -- from the aca appeal that will no longer be part of this and so many other constituents that may be aligned on different sides. ed, do you think it's possible to get tax reform done when you don't have the democrats playing at all here? >> yeah, i absolutely do. i think one of the questions i look at is can -- what is the likely bill? that's the main thrust of your question and what i see congress do time and time again is take the path of least resistance. the path of least resistance is doing on fy 18 reconciliation no filibuster in the senate and not doing this as a comprehensive package but in something that's not budget neutral. you have seen the freedom caucus indicate they're willing to do a bill that's not budget neutral. there's been too much focus on that and if it's not budget neutral

maria: i was treasury secretary stephen mnuchin mx was sitting at the last week about the considerationer cyclical tax to help american businesses be more competitive. they're just the discrepancy to the u.s. tax code treats foreign companies and how american companies are taxed overseas. he addressed it last night. >> i just met with officials and workers from the great american company, harley davidson. they told me without complaining because they have been so mistreated for so long that they've become used to it, that it's very hard to do business with other countries because they tax our goods at such a high rate. they said that in the case of another country, they tax their motorcycles at 100%. they weren't even asking for a change, but i am. >> joining us right now is america protects her from president governor crist. first of all, what did you think about what the president said about the tax package? do you have a bye in our opinion on reciprocal attacks? would that be helpful? >> of patty came out strongly. they will do the elimination of the trillion dollars of taxes that fu

after that, treasury secretary stephen mceachin talks about -- steve mnuchin talks about trade and taxolicy. later, vice president pence beaks to small business owners in west virginia. at 8:00, q and a retired syndicated columnist thomas soul. steve: joining us on newsmakers on this is congressman adam sunday smith, democrat from washington. he is also the ranking democrat on the house armed services committee. congress and thanks for being , with us. rep. smith: i appreciate it. steve: joining me is john donnelly of cq roll call and leo shane of military times. leo will get the first question. leo: congress thanks for doing , this. the big news this week was the health care debacle over in the house. you've been focused on defense budget but with what you saw from that debate, how do you feel about how we're going to move ahead with the defense budget talks and whether or not there's any chance to avoid a government shutdown. it seems like we're at a point where nothing is going to move. rep. smith: it's going to be very difficult. i theorized a couple months ago that the republicans

confusion between what trump has said during his campaign even now with stephen the nation as well. any clarity -- steven mnuchin as well. last week in my interview with secretary mnuchin. they will wait until able to make any decisions when a standard semiannual report comes out about whether or not the are currency manipulators. trade will be part of tonight's ,residential address particularly, bilateral trade agreements. he will make the case you want to lower the corporate tax rate to incentivize businesses, american businesses to stay in the united states as opposed to going overseas. all of that however hinges on whether or not he can unite this republican party including an ultraconservative faction within the party that is incredibly skeptical of more government spending. >> kevin cirilli, great stuff. joining us from capitol hill. a reminder that you can watch president trump's speech to congress live right here in full on bloomberg television. our coverage begins at 10:00 a.m. hong kong time and i'm :00 p.m. on the east coast -- and 9:00 p.m. on the east coast. >> a rate hike is looking increasingly li

stephen moore could join us, as well. we'll talk about what he said since he did advise the president. look, treasury secretary mnuchineform is, quote, much simpler. >> much simpler than health care reform, and is he just talking about tax cuts? >> i think at the end of the day that's what he's talking about because who doesn't love a tax cut? even democrats love tax cuts. the white house is proposing real tax reform and they're going to run out of time and the people in the white house have never written -- a tax overhaul before. secretary mnuchin said he's doing it from scratch. okay, well that's a long process. so good luck. >> just so we know, the difference between tax cuts is you're going to pay less money and tax reform is what? >> tax reform means not just necessarily tax cuts, but simplifying the tax code and getting rid of loopholes that make things convoluted and make things up fair. loopholes are put in there by special interest groups. so if you think of the mortgage interest deduction. any homeowner will not want that to go out of the tax code. >> that's a heck of an interest group, by the way. >> also i

mnuchin. trump has also tapped another half dozen more people tied to goldman sachs to join his administration, including national economic council director gary cohn, trump chief strategist stephen bannon, securities and exchange commission chairman nominee jay clayton, senior white house adviser anthony scaramucci, and senior counselor for economic initiatives dina habib powell. white house press secretary sean spicer said tuesday president trump is extremely confident the justice department will find evidence to back up his unsubstantiated claims that president obama tapped trump's phones during the 2016 election. >> he feels very confident we will ultimately -- we will vindicate him. amy: spicer's comments came only one day after spicer tried to back away from the claims, saying trump did not literally mean wiretapping, and that trump did not mean it was ordered by president obama directly.. >> the president use the word "wire tapping" to o mean broadly surveillance and other activities during that. that is, again, it is interesting how many news outlets reported this activity was taking place d during the 26 election cycle, and now we' wowondering whwhere the proof i. this m

after that, treasury secretary stephen mceachin talks about -- steve mnuchin talks about trade and taxicy. later, vice president pence beaks to small business owners in west virginia. at 8:00, q and a retired syndicated columnist thomas soul. steve: joining us on newsmakers on this is congressman adam sunday smith, democrat from washington. he is also the ranking democrat on the house armed services committee. congress and thanks for being , with us. rep. smith: i appreciate it. steve: joining me is john donnelly of cq roll call and leo shane of military times. leo will get the first question. leo: congress thanks for doing , this. the big news this week was the health care debacle over in the house. you've been focused on defense budget but with what you saw from that debate, how do you feel about how we're going to move ahead with the defense budget talks and whether or not there's any chance to avoid a government shutdown. it seems like we're at a point where nothing is going to move.