the united states treasury office spoke identity in the last hour saying that this could damage internationalestment. last weekend the united states treasury accused 9e.u. of using different criteria on american companies and they call all of this very troubling. apple said that they have no doubt this morning's rulings is overturned and we will have to wait-and-see. >> the stock market is trying to keep rally going and hotels are taking a cue from the airlines and charging for every little thing. >> and to the nasdaq with that story and more in money report. jane? >> good morning, apple shares are down half a percent on the news. the biggest moves in the market that is not moving that much, yesterday, i was our lightest value day of the year and today is rivalling it with the dow down 11 points, so, little movement before lib day weekend. a day after federal regulators barred education services from enrolling new services using financial aid at technical campuses a california regulators prohibited them from enrolling all new students at the 15 schools in the state. they issued the order beca

we will follow the story with developments coming in, the united states treasury is speaking out and i track it for you from the live desk. >> the white house is new responding to kaepernick's profit of the national anthem. >> white house press secretary said that he is confident that president obama is aware of kaepernick's actions although the two have not discussed it. >> i don't share the views that mr. kaepernick expressed after the game in explaining his remembering for his actions even as objectionable as we find his perspective he certainly is entitled to express them. >> the teammates are coming forward to support him saying they respect his right to protest. a different response from the san francisco police officers association and i quote, "they not stand by while he attacks police officers in this country." >> new on to your voice your vote, donald trump will continue his west coast fundraising tour with an event in walk state tonight. he was in the bay area for the first time in two months last night, and we were over head when he entered the wad side home of a bay area

concern over was american taxpayers would end up bearing costs and of these the hit to the united states treasuryould be pretty significant. the issue connects to something president obama and the white house have been very focused on, you know, the idea of individuals and corporations dodging taxes here. either setting up offshore or elsewhere and trying to use loopholes in the tax code to avoid it. it's kind of all part of a bigger picture where it doesn't totally surprise me that the white house decided this was ignificant enough to weigh in. vonnie: thanks for joining us. and you can follow all of the politics action on the bloomberg app. everything you need to stay up to date on the race for the white house. more on that big apple story, by the way, later this hour. we're speaking with the president and chief analyst. david: the race to voice control. we'll explore how tech companies are trying to upgrade their digital assistance. this is bloomberg. ♪ avid: here's our report. >> you ideally interact with your voice. so a good example on the market right now, you have siri where with the push

the united states treasury released a statement saying that this demand by the young yawn regulators undermine foreign investment. if you are wake up with us, antitrust regulators finish add three year investigation interest apple and ordered the company to pay $14.5 billion if back taxes to ireland. it is behind -- the highest fine ever issued. they think ireland was giving the company a tax break and the finance minister of ireland has fired back saying they will likely appeal decision and several apple say that apple follows the law and pays all taxes we owe, when we rate, we will appeal and we are confident the decision will be overturned. >> i will for the latest on the story as it develops through the morning but that is the newest now in the live desk. >> the white house is responding to kaepernick's profit of the national anthem. the white house press secretary said he is confident that president obama is aware of kaepernick's actions although the two have not discussed it. >> i don't share the views. those views expressed by mr. kaepernick and explaining his reasoning, as ob

they were of words between the united states and europe. >> the u.s. treasurypartment has lashed out at the european over its treatment of american companies and their tax arrangements in europe, national -- super national tax authority. reporter: amazon, apple, google, and starbucks -- these four american investigated by european authorities for their tax arrangements with certain eu number states. the u.s. treasury department warns the eu commission against taking action, saying brussels is becoming a super national tax authority that threatens tax agreements on tax reform and countries' ability to set their own tax policy. the treasury warns -- >>'s investigations have considerable implications for the united states, in the form of potential tax revenue and increased barriers to cross-border investment. reporter: the criticism comes as the eu is expected to deliver its decision on apple the next monthnp13avoidance. >> a deal has been reached to compensate 650 called dealers -- car dealers in the u.s. affected by the cheating scandal. the figure put at $1.2 b

futures in the united states stable and positive, up 21 point s. yields on treasuriesy a basis point, 1.9% -- 1.49% is your yield. dollarger euro, a softer . from new york on this payrolls friday, this is bloomberg. ♪ david: help wanted. economists are looking for payrolls growth to return in july. jon: bank of england governor carney starts a surge back into the economy. extenduropean banks their rally to a third day. rbs is feeling the pain of brexit. david: welcome to the second hour of "bloomberg ." we are all waiting for the jobs numbers. can tell from my last report that i am very into what we will see from the average hourly earnings. will they eventually be able to rise and supports the consumer spending we see in gdp yeah go jon: -- the consumer spending we see in gdp? until we do not get that august 26. we had this today, jonathan. alix: we are counting down for 30 minutes and then for three weeks. we have a reaction to today's jobs report. two economic advisers -- two former white house economics advisers will be here. alan krueger and glenn hubbard. and

united. >> the campaign manager said this is simple. what trump is saying is dangerous. hillary clinton has not addressed the comments. >> all right. thank you. trump's comments on the economy. candidate for state treasury criticized the new policy. >> what that -- of course at the united states level and everyone says it will be ir rep able harm. >> he plans to are reshape the american tax system and end the e we've pead it o easy. scroll oaf the fus tab and campaign 2016. >> family and friend are mourning of the dead of a local promotions director who was killed monday. >> worked at wqdr. wakeville died monday night. troopers say a driver rear ended her while she was demeanor death by motor vehicle. chlorine test to make sure levels are high enough to kill the back tier yavment all water was treated and released to the river nearby. >> the kansas city walk park will reopen today. water slide it will be closed indefinitely. no reports that at least two people have been in the monday -- with a brain injury. the 6-year-old along with her 10-year-old sister and another teenage girl fell more than 5 feet after they cabin tipped over. >> i heard it happen. i was shouting stop, stop, symptom the machine. the

he was one of the united states's most faithful servants as a legislator, as a secretary of the treasury under jefferson and madison, helped fund lewis and clark, was not very keen on the war of 1812, then became a piece negotiator -- peace negotiator, and ambassador, and on. you will hear him talk about that. and i want you to invite you for discussion after the talk, feel free to ask him questions about anything that relates to may be something that he was not directly involved in, before his death, he might have comments on current events. for now, i want to introduce albert gallatin. [applause] mr. gallatin: thank you very much. my friends and fellow citizens, it is thanks to the historical society and mr. william digiacomantonio, that i am here today. they have dragged me from wherever it was that i was. to me it is most remarkable that 27 years after the founding of our public debt republic -- republic, they have a society dedicated to the history of this building and those that work with your that is -- within it. that is a remarkable matter in any country's history. as some of yo

so he becomes the first treasury secretary of the united states in december of 1789, when he is 32 years old. and now, we come to what he did at the climax of his life. and the problem that he faced was debt. wars cost money. and the united states had no money. 5e are gone for the war, 8. year war, the longest war we fought until vietnam. longer than the civil war, our portion of world war ii, put together. but we could not pay for it. the government under the continental congress and the articles of confederation could not tax the state. they could ask the state for money. and if the states would not or could not pay, they did not have to pay. robert morris said at one point that asking the states for money was like preaching to the dead. so, they did other things. they printed paper money. and as unbacked paper money always does, it inflated away until it was almost worthless. then, they called in all of the old dollars. they said $40 worth the new one, issuing new money, but that began to inflate in turn. their bills. they did funny stuff with creditors. they took out loans. they took

united states. the last time the treasury was sitting at this field level, yields in japan were 100 points higher. the environment is low yielding. we see and investors reaching for yield almost everywhere we look. we think the five-year treasury is sitting around 1.2%. we think there is plenty of room for the yields to fall as we move forward into the end of the year. david: that was earlier today on bloomberg. vonnie: more breaking news out of brazil, dilma rousseff lawyer they will appeal her and peach meant, and that will be entered as soon as today. the impeached president from brazil. that was the impeachment vote earlier today. this is bloomberg. ♪ \ >> this is bloomberg "markets." i am david gura and washington today. -- in washington today. vonnie: the u.s. government has filed an antitrust lawsuit between monsanto and deer. the u.s. says that when a limited competition and raise .osts twitter jumping in wednesday's trading. after the cofounder told bloomberg television that twitter must weigh all of its options amid ongoing speculation the company could be a takeover target. >> mike davi

on within the progressive economic world, just that currently, the united states can borrow at low interest rates. the 10 year treasuryays , you would know, but the point is that many aggressive economists believe that the united states should borrow to pay for a big public works program and in the search of program that would not only build the nation's crumbling infrastructure. trump has called for doing, but that would create jobs in the process and they see an opening to do that, given the low interest on the 10 year treasury notes. vonnie: she is going to talk about the so-called trump loophole. what is this? sahil: she will be talking about things like that estate tax, things like carried interest, and parts of the tax code that wealthy people can use to effectively pay a lower tax rates. some of this goes back to what warren buffett talked about, about -- i'm sorry, about a higher effective tax rate than he does, so this is what she will hammer on as her overall aim to reduce income inequality and crackdown on wall street and make the wealthy pay more in taxes. vonnie: it is not that helpful to her campaign to

muchese bonds, that's treasury but agency bonds in the united states america.st 10 months, $50 billion worth of u.s. bonds were bought. the majority were agency bonds. let's get to rosalynn chin. -- rosalind chin. rosalind: a rate hike is possible. he warned investors they are underestimating the number of increases in borrowing costs. we will get more into the fed's thinking at 7:00 a.m. today when the minutes are release. the bank of england has enough to make its weekly target. -- boe touched 1.7 touched 1.7 billion pounds. reportedly tois cut up to 14,000 jobs worldwide. that is 20% of its workforce. the network equipping giant will announce the layoffs in the next few weeks. been shifting towards software-based networking -- ands and did it workers with different skill sets. a spokeswoman declined to report. shares climbed on thin volume this morning. the yen halted its advance after briefly posting 100 per dollar. a second time this year the japanese currency has risen above that level. the business of visor to donald trump says the nominee could free the

enough, if you look at the corporate market in the united states, corporate bonds, mortgage bonds in the united states, they've tightened the treasuries over the last month about 20 basis points, but i still think there's good values there. >> okay. >> treasuries is compared to the bonds in europe or the bonds in asia. they're still decedent value in our treasury market because it's the only place left with any positive yield. the equity market is very stretched. we've had two years now of earnings decline. we have pe multiples that are within very small space of all-time highs and i understand the reason for this. the reason is this tremendous amount of capital of money that's pouring into the all the world's markets which is like a hope floats. it's a lot of hope and it's floating. >> i mean, i think it's interesting you said -- i mean you made the case for the entire globe being in a bond market bubble. just because our yields are a little bit higher, you still think that's ta place to invest. you have a completely artificial bond market bubble, but you're still ready to buy our bonds. even though it's a bubble. i don't see why you

treasury bonds. i would be worried about drastic actions in the bonds. we have proper growth in the united statest will start to normalize interest rates. 25 base points doesn't matter that much. we start to normalize, i think it's a good thing. if that happens, my view is you have to see the 10-year treasury go up to a normal price. we don't look at today's price as a normal price. it's a low price. >> we think more broadly about the stock market itself, we've hit record all-time highs, but if you look at almost any time frame since the financial crisis, ten years, five years, this year, banks have been left behind. loan growth is good. you're positive on the economy. is this a once in a lifetime buying opportunity for bank stocks in the united states. >> the american banking system is in great shape. tons of capital, tons of liquidity. they're starting to expand again and a healthy financial market is good. legal and regulatory pressure on banks. i think that will be good for everyone when it happens. i don't count on that. build a company, serve the clients, you can see behind me. right now yo

united states. you can fill the treasury coffers. what's wrong with that? >> i think there's issues there.fizer a big tax cut break. what are you going to do for individuals? are you going to do something on the earned income tax credit and minimum wage? as you go through the pieces, you'll need a bigger compromise and it gets much more complicated. steve, one other point. paul ryan really wants to stop inversions. he believes you need a permanent change to the u.s. international tax laws. do you move to a territorial tax system? that may be a step too far for democrats. that's where the flash point in the debate is going to be. if you look at infrastructure stocks, they're up this year. you look at companies will large cash holdings overseas, they are really starting to outperform the s&p 500. so the market is starting to bet on this type of deal coming through as we get through the election cycle. >> dan, thanks very much for your time on this. i've been talking to two of trump's economic advisers the last couple days. they make the connection between the differential and the tax rates a

>> today it is illegal under treasury policy and regulations and under statute for any united statesates to islamic republic of iran. that happened here. and we've asked lots of questions. we don't know if there was somehow a waiver granted, don't know who signed, sent letters asking questions, have not been provided them. make no mistake, the president thought if he did the deal in cashish hid it from the american people, kept it off the books, made it laufrl. the legal part, not as if you handed them gold bouillon or cash or illegal transfer, the illegal part is transfer to assets to the republic of iran. that happened here. we need to figure out who did it, why they did it and who authorized it. >> again, obama administration saying this money was iranian money to begin w this was not u.s. taxpayer money, which is the basis of your argument. let me finish while we still have some time. >> it's not true. >> they want to cover this issue, that is when we look at some of your fellow republicans, who are critical of this deal, of this transaction that happened, the money being returne

united states. you now have a 2% dividend yield. paid above what you get on treasury.eph's point, we don't know what the five-year implications will be. it you're an investor, you have an opportunity. if you're a trader, even. look at the risk/reward. 58 and change. you want to risk to make 15 or 20? not a terrible risk/reward either. i didn't have to think long about t. and your merck calls? >> the same drug jimmy carter took when he had his melanoma and it cured hill. one of the reason it was treated as a huge drug. on the bristol myers side, get it cheaper because of so many holders of this, institutional holders who have to sell the stock now that it's down so much. the overhang is over 500 million shares and own 51 million on the table. a lot of guys still have to sell over the next coming days probably a week or so. go into high 50s and you can get a better price. >> sue herera has the latest headslines. >> what's happening this hour, apple is offering a bug bounty. yep. you heard me right. the tech giant will pay you up to $200,000 if you discover and report a f

today it's unlawful to france fer money from the united states to tehran and i want to understand how it's the case our department of treasuryed them to do it and on what authority they took that action. >> i'm glad your asking these questions. i say, how does $400 million suddenly good missing? really. this is after all our money. money that belongs to the united states of america, and suddenly now they're able to move it to iran in an unmarked cargo plane, in foreign currency bills, and nobody questions that? think about it. if you're a business and money goes missing like that, somebody would be held accountable. >> that my aim in asking the questions i want to make sure the right people are held accountable for what took place here. it is inconceivable that somehow after 40 years of litigation, all of a sudden on this day, when hostages are released, we could put $400 million in a couple pallets and send them to tehran, all the while the law says this can't be done. so we'll dig in and ask all the right questions. >> so you think the president -- >> -- transaction -- >> john kerry broke the law in this particular case? t

on the united states side, we really wanted to get out of the war with our honor intact. by this time, the treasury running out of money, the invasions into canada, all appeared to be failures. we lost a lot of men. and it was really unlikely that we were going to take over canada. however, we didn't want to retreat from our demands about the british laying off our sailors and confiscating our merchant ships. we couldn't back off on that one. the british were also intimating they wanted us to give up the indiana and illinois territories. we weren't going to let that happen. by the same token, the british by the way of turning up the heat realizing by 1814, napoleon had been defeated in europe were able to send some reinforcements from europe to shore up the defenses of canada and also turn up the heat in the chesapeake bay. so thousands of british soldiers landed in southern maryland in late august. they march toward washington, d.c. or washington city as they called it at the time, figuring if they could capture our capital, that could bolster their position at the negotiation table. the americans

united states there. we the great chart of the hour. nejra cehic is talking u.s. treasuries heard the likes of bill gross it janus capital say government debt is looking too risky for the return now. significant opportunity and corporate debt. what this chart shows is the corporate bond spread over treasuries is at the smallest in a year. investors willing to accept this money as 216 basis points at the edge of the chart. spread and more than a year we are seeing a real reversal here because last year they climbed about 1% while corporate fell about 1%. this year the u.s. treasury bond index has risen 5.4% versus 9.2% for the bloomberg u.s. corporate bond index of investment-grade debt and within that corporate bond index your sink metals, mining and energy companies being the best performers where is financial and technology bonds have been the worst. overall it is this spread i'm focusing on in the chart. yield. the hunt for this action all over the place everywhere. that spread is very big relative to the outright yield on treasury. 1.5 is more interesting than 2% over 5.

united states listing plays in how we canole act quickly to get listingsrigh t? >> just because we do not speak to it does not mean it is not ongoing. there is an investment from the treasury department, looking at the issue of terrorist financing. has been working on this since i was at the state department 15 years ago. that effort is ongoing and complicated. we are building better tools to better understand that phenomenon. coming out of paris and brussels, working with european partners, we were able to uncover some of the connections using financial tools. nott is part of the fight, one that we have forgotten about. tool in important dismantling organizations across the globe. >> i think we have come to the close of our event. i know we have many more questions. both of these gentlemen have >> and general taylor, for everything you and your team have done for not only protecting the u.s. and our partners around the world. and a big round of applause for that. [applause] c-span's washington journal, live every day with news and policy issues that impact you. coming up this morning, the research and policy director for the economic policy institute will join us to discu

when i think about debt structuring in the united states, we did away with the 30 year bond or treasury debt some years ago. with interest rates this low, would it he a good thing to bring that back? my second question is who is everyone's secretary of defense nominee? [laughter] >> i have a quick question. it has been mentioned several times that we need to revise the tax system. can we get some specifics? >> i was wondering how unified should the budget be, especially with entitlements? and should there be more and larger contingency funds? and like with dod, if you want to put an investment in place, you have -- a maintenance and replacement costs that are not immediately budgeted. michael: do you want to start, bob? bob: in terms of -- i will pass on the next secretary of defense. in terms of unification of the budget, i will give the same answer i did before. i think the department needs to argue for their own. the president needs to hear alternative views of what the department needs. but he or she has to defend on places like the office of management and budget to bring alternati

united states? >> look at this right now. u.s. treasury here.he reason i like them is because look at the comparative yields around the world. >> adiabatic a 10 year and get paid percentages? >> i'm talking tactically here. u.s. stocks are us to the place to be. look at exposures where people are moving their part well is. they look at their offense at their funds going to make too much and commodities. commodities versus other exposures. >> look at what is happening in the oil market. dagen: oil dates below about 22% after yesterday's close friend of recent high. this helps the economy which is barely in positive territory. >> this is being treated as a tailwind right now. oil or gas. people have more money to spend. that's not likely to be here. look at what's happened over the past month. fifty dollars is where the crews got to 50/50 one it started coming in. i call it the lack of moral price. it's almost like oil is rising, rising it said that producers come out and say i need to make money here. but they attacking exxon and chevron for smal

united states. not just liquidity, but volatility as well. we have been talking about this with regards to stocks. this is the merrill lynch treasuryx that looks at volatility in the treasury market, it is a move index. it is declining. assete seeing high cross volatility if you went back earlier this year or at the end of last summer. we are seeing a collapse in that volatility across asset to some degree. it is at the lowest since 2014. it is not just investors in japan who have something to complain about in terms of bond market investors. here in the u.s. as well, volatility at very low levels. mark: where can we find your chart? gauge always gets my pulse racing. shery: noo! mark: however. shery: i like that however. mark: i think debutantes should always when, otherwise they will never come back. we need shery ahn to come back and battle. shery needs a victory. this is all about confidence building. shery: i promise i will come back with better charts. mark: coming up next, what is the big topic of conversation these days when the rich and famous gather for a cocktail party in the hamptons? we will have the answer. a quick ch

united states. >> reporter: and with fewer farms and coal mines on the landscape, the political shift is expected to continue. something republicans are attempting to navigate as democrats target red states. >> alicia, thank you. >>> treasuryry jack lew says a european union ruling that apple must pay $14.5 billion in back taxes may push congress to act on tax reform. >> i've been concerned that it reflected an attempt to reach in to the u.s. tax base to tax neil cavuto that oug-- tax income sh income taxed in the united states. >> both apple and the government of ireland say they will appeal the eu decision. >>> stocks were down today. the dow lost 53. the s&p 500 was off 5. nasdaq dipped 10. >>> president obama is talking conservation and climate change ahead of one of his last major international events. the president was in reno, nevada this afternoon on his way to hawaii. hello, william. >> reporter: chris, the president has five months left to finish what he started eight years ago, which is to slow global warming. and to put in place the policies that will carry out that legacy. today, he helped do that, by committing millions of federal dollars to help clean up salt and sea and develop geothermal energy. the presid

united states. that deal, they pulled that deal in april because of the treasury. that left them a lot of money well beyond what -- three or four other companies around medivation and the one who kick it off was sanofi. their bid was 5250 per share -- 52.50 for share. you are way off on your expectation of valuations and what others would bid. pfizer came in and really blew them out the door. almost $14 billion all-cash bid. matt: i saw in a story that oncology is one of the hot areas that buyers are looking for targets. why is it now? we then looking for a cure for cancer for long time so why is oncology hot now? drew: two things going on here that are very separate but very important. oncology is going through the scientific period where we are seeing a lot of work that was done at the basic science level understanding the genetics of .ancer showing -- you have seen a lot of that stuff in the biotech space, the backbone of new cancer therapies. the second thing, the dynamics in cancer and how you can price those drugs. one of the few places, along with a handful

when i think about debt structuring in the united states , we did away with the 30 year yearsr treasury debt some ago. with interest rates this low, would it he a good thing to bring that back? my second question is who is everyone's secretary of defense nominee? [laughter] i have a quick question. it has been mentioned several times that we need to revise the tax system. can we get some specifics? i was wondering how unified should the budget be, especially with entitlements? and should there be more and larger contingency funds? and like with dod, if you want to put an investment in place, you have -- a maintenance and replacement costs that are not in medially budgeted. michael: do you want to start, bob? bob: in terms of -- i will pass on the next secretary of defense. in terms of unification of the budget, i will give the same answer i did before. i think the department needs to argue for their own. the president needs to hear of what theviews department needs. but he or she has to defend on places like the office of management and budget to bring alternative use of the balance. i

united states and the european union. guys? >> those are strong words from the treasury secretary.'s been criticized in the past for doing some of the same things. jim and i were talking about pfizer and allergen in particular, you followed inversions as well, those are strong words. >> yeah. look, i mean jack lew views this very much as the european union trying to reach into the u.s. tax base. i mean so this is a turf war and it's about dollars and cents as much as anything else and a lot of legal principles thrown around here. but you're talking about $14 billion and who's going to get it and not get it. >> right. eamon javers from washington, thank you. >> makes a point. people on twitter saying that's all it's about, who gets the money which is clear that it will be, although by the way, there's no certainty we're getting the money because it's sitting over there. >> right, right. >> and when will it come back. of course all these companies, $2 trillion, waiting for that time that perhaps will be more advantageous tax rate on their overseas profits. >> well look -- >> to bring

united states. particularly when you are evaluating the fairness. to the specific ruling and the impact it could have, i refer you to my colleagues at the treasury departmentnd cannot speak much about the specific ruling because of a subject to an appeal. when it comes to this principle about addressing concerns europeans may have about the fairness of certain tax policies, a more effective approach is coordinating with the united states and working cooperatively to make progress as opposed to unilaterally. frankly, that is something the obama administration will contest. >> you are seeking tax fairness. did you not have a dialogue with european officials? are you saying you didn't have any kind of conversation at that ?ime about those concerns for conversations the united states has had, i know they have had extensive conversations about a range of international issues. there's an ongoing dialogue about these issues. treasury speak to the contents of the paper they issued last week but am papers werehe white issued fully aware of the context in which it would be received, which is the impending decision i announced earlier this morning. >> the u.s. is not

when tribes the back end of the curve is not an united states, but it comes from largely overseas buying. alix: the u.s. treasuryifference between the two is not that extreme because hedging is a high. this is one of my favorite charts. when do investors stop buying because you are not getting the returning it? you need? rick: this is a very big deal. quite frankly, we have produced some of our target in terms of where treasuries can get to . we have produced some of our exposure to 10 year treasuries to the back end of the chart. it has become expensive to hedge. buying will continue, but not nearly at the pace it has because of that chart. the cost of hedging has made it negligible in terms of buying treasuries. david: i do not understand this chart. what this really tells me is that is said did real yield on 10 year treasuries is negative, why do people keep running into the market and buying them? rick: not everybody ha hedges. the market is very relevant, but it's not the entire market. partnk the point is that of why we took some of our long and exposure down was this, but the point i made is that you will

united states history takes place. james madison very unhappily musters a small group of potomac valley members to vote for hamilton's extremely radical, controversial treasury plan. in return, alexander hamilton, a very strong antislavery man and an advocate of a northern capital, surrenders that and agrees to provide enough northern, mostly new york and new england votes to bring the , capital to the potomac. that is why we are here. because two of the most illustrious founders, hamilton and madison with jefferson, more or less presiding at the dinner , table, agreed to yield on matters of deeply held principle in order to come to the decision that they felt would benefit the country as a whole. ok, so in the course of these two years, congress got its footing. washington created the presidency, more or less as we know it. members of congress differed on all kinds of issues, on slavery, centralized government, regional interests, taxation, but why did they succeed? they were all determined to make the government work. they knew that failure meant catastrophe. they believed in politics as a tool for national survival. and i want to underscore this, after al

alexander hamilton, treasury secretary wanted all the debt from the states to come to the federal government and then to use that debt paying it off to build credit for the young united states. not everybody agreed with his plans. so you start seeing division. and then foreign policy questions would arise. britain and france go to war in the 1790s. a lot of americans would feel like we owed france. they helped us in our war. we still don't line the british very much. for george washington, the first president, the notion of neutrality is preferable. we don't really have any money. we didn't really have a navy at all. and our army was not much to speak of. so we certainly weren't in a position to go and fight a war. certainly not in europe and probably not even fighting our neighbors in british canada in those days. so he is going to present with his cabinet approval a neutrality proclamation which starts dividing us into this question of ought we be doing more to help france. in the same notion of keeping us out of war, george washington will send john jay, who was at that time our first chief justice of the supreme court, send him to britain to negotiate a new treat

when i became secretary of the treasury in 2013, a debate over growth versus austerity dominated these meetings. the united stateselieved it was misguided to impose immediate fiscal austerity with the global economic recovery still fragile and unemployed but still unacceptably high. we thought there was a need for short-term growth and longer-term structural reforms. but not everyone agreed and our differences would not be resolved immediately. it was only over time through persistent discussion and evaluation in g20 meetings and as these issues increasingly became topics of domestic political debate in many countries that a consensus began , to form around the u.s. position. in february of this year she 20 -- g20 finance ministers meeting in shanghai finally by the committed to use all policy tools, monetary fiscal and structural, individually and collectively, to support the recovery. beyond words in a communique this commitment was almost immediately reflected a new policy measures in several major countries including canada, : china, south korea, japan and parts of europe. all undertaking additional fiscal sp

total output of the united states, not a good position to be in a particularly when we depend on other countries given the global economy that help support that debt. they buy our treasury security and therefore they are buying our debt. everything is intertwined out it's not good to be dependent on others for how the country is indebted. c-span: by the way the first golden fleece award was in 1975 for the national science foundation for squandering $84,000 to try to find out why people fall in love. >> guest: i'm sure something like that is still going on over there. the national science foundation has been in the list and senator coburn announced senator langford and many others were some of the studies may have merit but a lot of them are duplicative, a lot of them really don't help anybody around the country. it just has to make sense. c-span: the second one back in 75 to the national science foundation for spending over $500,000 to determine under what condition rats, monkeys and humans bite and clinch their jobs. >> guest: given a rat population around capitol hill these days i don't think you want to know the result of that one. c-span: select service, for 98,000

united states. >> right, and its people around the world but more locally you know very well rent is expensive in new york, it's expensive in los angeles, miami, these are all places the treasury department is looking at with these expanded programs and part of the reason is there's been so much foreign money that's come in and among this money there is a real percentage of people trying to hide money here, they are hiding behind shell companies and sometimes they got that money through illegal means. jenna: and its elevating home prices for everybody else. somebody paying taxes here is not necessarily able to afford the real estate and this money isn't necessarily from people paying taxes in the city they are buying . >> any of them don't even live here so they are buying these 40 million-dollar condos , maybe they come for a week but most of the time, a prominent real estate firm in new york told me these condos are safe deposit boxes so these treasury programs which now require that the buyers using shell companies and paying all in cash in a number of cities including los angeles, new york, miami and san antonio, they have to give the names of the realtor behind the shell

the congress of the united states had previously set a threshold through which a merger would be considered an inversion. this one came beneath that threshold. treasuryithout even providing a comment period -- which is required also by federal law -- the treasury unilaterally just changed the rules of the game, looked back three years at other mergers that had taken place between one of the two companies and acted as though three years ago somebody had preplanned all this. so it is totally off the charts. we think it's an illegal, an abuse of regulatory power. and we're challenging that in court. charles: bruce, the topic of inversion is one that doesn't have a lot of popular appeal on main street. most americans feel like it's another attempt to take jobs out of this country to foreign countries and for corporate greed to manifest itself. so while i get where you're coming from, how do you explain to the american people that this is something that helps them? >> well, here's what the american people need to understand, and i think the administration has been more than clever in how they've approached this by calling the american companies un-patriot

united states listing plays in how we canole act quickly to get listingsrigh t? >> just because we do not speak to it does not mean it is not ongoing. there is an investment from the treasury department, looking at the issue of terrorist financing. has been working on this since i was at the state department 15 years ago. that effort is ongoing and complicated. we are building better tools to better understand that phenomenon. coming out of paris and brussels, working with european partners, we were able to uncover some of the connections using financial tools. nott is part of the fight, one that we have forgotten about. tool in important dismantling organizations across the globe. >> i think we have come to the close of our event. i know we have many more questions.

united states to buy government debt here. a lot of investors aren't facing that choice. we are focused on buying u.s. treasuries and u.k.give us a sense of liquidity. it is something of ongoing concern around investment banks scaling back in terms of the markets. where do we go in terms of liquidity? bond markets are liquid. there are various ways of measuring liquidity. with the advent of high-frequency traders coming online over the course of the past couple of decades, government bond liquidity is fine. we are not concerned about bond liquidity. we think investor should not necessarily focused too much on that in the sovereign space. caroline: why your u.k. gilt call? anticipate another rate cut coming from the bank of england. >> our chief economist is expecting the bank of england to cut rates forward. marginally, but more importantly, for the 10 year , he is expecting the bank of england to announce an extension to the tui program. with the bank of england continuing to buy and likely to continue to buy into 2017, gilt yield could continue to climb and at 1% in the first quarter of 2017. alix: thank you. hornbach.

treasuries by three basis points. we just got some breaking alix: data in the united states. alix:really strong housing starts. down.ousing starts. building permits on the softer side, down 1/10 of 1%, missing estimates, but housing starts coming in at 2.1%. in terms of the inflation rate, looking at what the fed is checking out, cpi, if you back out food, backout energy, year on year, actually fell to 2.2%. on a monthly basis, it was up just .1%. inflation coming in later, echoing the idea we heard from john williams yesterday and you cannot get higher inflation when you have neutral interest rates this low. jon: that is a story in the market, ignoring the housing starts, going with inflation data. the dollar stays weaker. we are trading off the back of that. the rate story and the housing start story are linked. i want to bring in sam zell, still with us to talk about global real estate. --, if you give me low rates you know the story -- if you give a minor and dollar and he can borrow for nothing to do you a whole, what is the story without in market? mr. zell: i think the asus is identical. i think it was confuc

treasury secretary to label china a currency manipulator. the greatest in the world. any country that did values the currency in order to take it -- unfair advantage of the united statesnd all the companies that cannot defeat -- competetaxes to stop the teaching. when they see that, they will stop that you can. -- cheating. i don't think a politician know what is going on. we will take lots of money. i will instruct the united states trade representative to bring trade cases against china both in this country and at the wto. the world trade organization. china's unfair subsidy and its by ther is prohibitive terms of its entrance into the wto and i intend to enforce our roles. -- rules. that is all. they know it is coming. they have called a lot of friends of mine. they know it is coming. if china does not stop its illegal activities, remember this, our trade deficit with china is approximately $505 billion a year. $505 billion a year. you will stop trading with china. is that good or bad? you tell me. we have to straighten that out. we can't have deficits of $500 billion. we can start making things right here again. it will be very nice. [cheers] i'm going to use ever

treasury department. what i can tell you is that when the united states makes an agreement and we make an agreement to make a payment, we are good to our word. >> how many of our constituents are now in iranian custody? the reporting and suggestion is that this is happening because a ransom was aid. because there was this coincidence. sec. earnest: to be clear, i never called it a coincidence. nowhe question is there are other americans being held prisoner by iran. what is the administration doing about that? do you see a connection to the iran deal? sec. earnest: there are a couple of things here. first, i'm not in position to talk of the clean about the cases of individual americans if they have not signed a privacy waiver. i'm quite limited in what i can say about this. what's also true is that in discussing the cases of americans being unjustly detained or held hostage, we've often found it's not helpful to name them, detail them, identify them specifically. let me just say that we have tingling long-standing concerns with iran's treatment of american citizens in iran. why an agreement, again, announce

treasury secretary to label china a currency manipulator. the greatest in the world. any country that devalues their currency in order to take unfair advantage of the united states and allf its companies that cannot compete will face tariffs and taxes to stop cheating. and when they see that, they will stop the cheating. i don't think our politicians even though what is going on and they will stop or we are going to take in one hell of a lot of money. i'm going to instruct the united dates trade representative to bring trade cases against china both in this country and at the wto, world trade organization. subsidy and its behavior is prohibited by the terms of its entrance into the wto and i intend to enforce our rules. it's all very simple and they know it is coming. have called a lot of friends of mine and they know it is coming. a say what do we do. itshina does not stop illegal activities, remember this -- our trade deficit with $505 is approximately billion a year. inc. of that. 505 billion dollars. somebody said you're going to stop trading with china. is that good or bad? we have to straight it out. we cannot have deficits of $5 billion. we can start making thing

united states of america and our neighbors and friends in this hemisphere. we tried to work to bring about democracy. we hold elections in various countries. jim baker as soon as he became secretary of treasuryorked out an agreement with speaker of the house that we might be in the contra war by bringing out a democratic election in nicaragua. the most recent one in paraguay. we have gotten to know the desire of these leaders and their people to emulate in the finest sense the characteristics that have made our nation the greatest on earth. they however have instituted in them a lot of anti-american sentiment or fears because we are the big brother who has quite often in the past intercede in their internal affairs. they see a new era dawning. hemispherery in this has no moved to a democracy except cuba and of course mexico is not yet there. but they have done this with confidence in us. i don't think there's anything that can be done in this nation. in this decade. that will deal a more severe to the growing friendship and trust and confidence to set up a partnership in sharing that is growing between us and our latin american friends than the rejection of nafta. this is a litmus test for t

treasury. so it is a credit that enables developers to get access to private capital and build affordable housing. and it is the most robust program today for affordable housing in the united states. host: what are the qualifications for that program? guest: it is income-based. what happens is a developer receives the tax credit to help them develop and build affordable housing, and then they rent those units at rents that people earning 60% of the area's median income can afford. let's take for instance, denver. denver is not a hot market, and it is not a weak market. it is relatively healthy. in the region of denver, the median income is about $72,000 a year for a household of three people. so 60% of that area median income is about $42,000. so a rent that a family earning about $42,000 can afford is about $1000 a month. a developer makes their units affordable to that group of people, and that is considered one form of affordable housing. the federal rental assistance programs i described earlier typically serve a lower income group, those earning more like 30% of area median income. in denver, that is a household of three, maybe a retail cashier, a single-parent, earning abou

for the united states to get involved in some tax reform, lower business taxes make everything simpler. but the eu cannot run around breaking international tax treaty law. okay. even our own treasury is saying that. so eu, i don't know, up yours. >> secretary gutierrez, this was a tax ruling granted by ireland in 1991. and now it is 2016 where the european commission -- i mean, that's slow even for government work, isn't it? >> yeah, i think this is amazing coming off brexit where, you know, you have countries who feel like they're getting suffocated by all these regulations coming out of brussels. all of a sudden a clawback on an agreement that a sovereign nation made with a company. i think that's going to scare away investors. i think the big problem here is not what it's going to do to apple. apple will survive this. it's what it does to the investment climate in the eu at a time when they desperately need investment. >> absolutely. carlos, dead right. i mean, they're waging war against a whole lot of companies. i mean, i was just looking down some of the reports today. fiat, starbucks, amazon, mcdonald's, et cetera. look, let's just go back here. we had this discussion a few

united states, up 3 on the s&p 500. back to me bull market on the dax. the s&p market rally marches on. a "bloomberg " jonathan ferro correction, treasury a basis point, they are not the widest on record. that was back in 2000, we were 25 basis points. not quite a record year, alix. alix: what a correction. jonathan: i know, it hurt. [laughter] alix: it is the big day for disney. here are the three charts you need to watch when a company closes after the -- posts after the bell. versusre down to poo 2% the industry average of 4.5%. part of that was new to the timing of college football on espn. remember, espn makes up 46% of disney's operating income. this is a key number to watch. the other big number you want to watch is affiliate growth. it was down 3% in the second quarter. all is how it started at last summer, you know, september, august. this tells you about growth. how much cable and affiliates are going to pay for that content. if you have lots of september growth of espn, if you have worries of cord cutting, you are not going to get the affiliate fee that disney might be expecting. disney did affirm its high feele-digit outlook