-- focus more on the wto and what's likely to happen under the wto. for section 201, my view is this was done consistent with domestic law. they filed the right procedures, the itc conducted an investigation. is our solar panel industry seriously injured because of the imports that have come in? the itc did an investigation and answer the question yes. our solar panel industry is seriously injured by imports. therefore, the tariffs they recommended word lawful under u.s. law. same thing for large residential washers. a fully consistent safeguard action under u.s. law. again, there has been no challenge under u.s. law to this. a challenge by korea to the washers safeguards at the wto, where there are some modest allegations that some procedures may not have been fully consistent with the wto. move on to the 232. the finding is that imports of steel and aluminum have threatened the national security of the united states. here, there have been a number of challenges under domestic law. challenges in the united states. if you step back from it, the idea b

i'm going to focus more on the wto what's likely to happen under the wto. the domestic law for the safeguards action section 201, my view is this is entirely consistent with domestic law. they followed all threat procedures a full investigation, is our solar panel industry serves injured? the itc did long investigation, and to that question yes. our solar panel industry is thinks is injured by these imports. therefore, the tariffs they recommended lawful under u.s. law. same thing for large residential washers. a fully consistent safeguard action under u.s. law. and there has been again no challenge under u.s. law to this. a challenge by korea to the washers safeguards at the wto where there is some modest allegations that some of the procedures they not even fully consistent with the wto. move on to the 232. so here there has been again so the finding is that imports the field in the ports of aluminum have threatened the national guard of the united states. and here is the number of challenges under domestic law. challenges it and the united states. if you

this is why the wto exists. your dispute and you will win your case in court. the law is on your side. you see... as the head of the international trade centre i spent most of my time in africa, and i see african countries doing more and more value addition, because they are investing in people, they are making sure technology is an integral part of the economic development, because they are integrating with each other, they are moving up the value chain. to trade with one another. exactly. and with the rest of the world. and with the rest of the world, i see the senegalese it industry, i see the digital sector in kenya booming. the senegalese textile industry, arancha gonzalez, says we are getting all of these cheap textiles from china and so on. i will tell you what the president buhari of nigeria said in april, "our industries cannot compete with the highly technologically driven industries in europe," he says, for example, they can't compete. this is not what i see on the ground. what i see on the ground is

the wto.president trump: i would say the wto was the single worst trade deal ever made, and if they do not shape up, i would withdraw from the wto. anna: and in another sign that trade disputes between the united states and their allies are not soaring, he dismissed the eu's offered to scrap tariffs on auto imports. president trump: not good enough, nope. they do a lot more auto business then we will ever do. first of all, it is not just tariffs, there are barriers. downwill take the barriers and charges no tax, but it is not good enough because they will always sell more cars. their cars, their consumer habits are buying their cars, not our cars. anna: donald trump hit out again at china, saying the world's second-largest economy would not outlast the u.s. in a trade dispute. he said they were re-examining how a country such as china is manipulative their currencies. president trump: it is a formula, and we are looking very strongly. as you see what has gone with the yuan, they are trying to

with respect to the wto and china firmly believe china has wrecked the wto. if you have an economy that size end of that scale that is coming into the world trade organization it's expected to be compliant. that's one of the expectations and they simply haven't been. and i was around for this debate out in 2000. if we bring china into the wto it will change its rules and it will adhere to them and it will become more market based and it will democratize and also do things will happen. it was the prediction at the time. none of that is true. china has stubbornly stuck to its economic planning to its state-owned enterprises because it's easier to do that. it's hard to win yourself off of that type of a market days. it's a terribly difficult transition and its leadership has been postponing that kind of pain. i will be quite honest and quite candid for the wto to work well china has to be out of it. china has to be out of it it gives members more options in going after china on the effect of its anti-competitive practices. the trump administration didn't wreck t

the wto. say the wto is the single worst trade deal ever made and if they don't shape up, i would withdraw from the wto. the president also tells bloomberg he thinks the eu is as bad as china, only smaller. we get europe's response. he will be's -- matt will be speaking to the ecb governing council member and former commissioner for economic and monetary affairs. despite an ugly august for emerging markets, credit suiss'' ceo tells bloomberg he doesn't see contagion. >> i don't believe there will be material contagion. in the short term, there is always spontaneous reaction. less than half an hour from the start of european trade. keep an eye on whitbread. costa, thebuying coffee chain. that will move markets later on. at the moment, london futures are mildly negative. it has been a very tough month for emerging markets. that is where the real action has been. interesting to see how european carmakers open up after trump objects to the idea of zero tariffs and hints there could be paying down

here's the president on the wto. >> i would say the wto is the single worst trade deal ever made.hape up, i will withdraw from the wto. tom: joining us now from washington, not in the oval office is our chief washington correspondent. i thought it was fascinating to have the interview in audio, rather than the visual extravaganza of tv. you hear this act every day. what was distinctive about the interview? takeawaythink the big is the attorney general has a job until after the midterm elections. jeff sessions is going to be safe and his job after the midterms.after the that is really notable and driving a lot of conversation here. outside of the beltway, in terms of the economic developments out of this, president trump double down on his criticism of the wto, in addition to saying he actually liked the capital gains. they were interesting things in terms of the economics of this. it comes at a time in which just before the interview, bloomberg exclusively broke that the $200 billion in tariffs against china are still very much in the pipeline. theme, ise overriding that there is

basically end the wto as we know it. setting the global trading system, the wto is a big part.em created back in the day. trump has basically taken a global trading norms that have existed for the past few decades. he has already taken action to undermine the wto. it may be part of his strong-arm tactics to try to get what he wants out of the wto, rather than pullout. we have seen these sort of threats before. if he follows through with it, then all bets are off. ramy: donald trump also said he is looking to move ahead with tariffs on those $200 billion in chinese goods by next week. we knew this was going to happen based on the schedule. we have seen he is focusing the lens. we saw the concerns ripple across equities. this $200 billion threat has been around for a wild -- dan: the $200 billion threat has been around for a while. the question was whether he would delay the implementation of these. it appears it will go ahead as planned. i think china is expecting this to go forward. they have seen absolutely no progress on the trade front, basically since trump pulled out of a

the wto was created 45 until 93 when the wto was created when i was there in geneva. i was there to keep financial services out of it. i was on the banking committee. we did not want financial service to be covered by the wto because there's something meaning if i give written, very low tariff, it is the most favored nation treatment in you have to do that in the wto. china did not commit in 94 when it was created. they came into the wto in 2000. because china is a communist country, we could not get them more than one year at a time because there was a law that said we couldn't get china more than one year at a time. but we were giving them enough then. why would they want to get into the wto? because they wanted permanent enactment of congress had to change our law. the congress was persuaded to do so in all the lobbyists was this will increase american exports with china. when china came into the wto, in 2000. 2001 they actually came in. congress gave them mfn in 2002 the bush administration brought the men in december 2001 with a partisan, both parties are part of

that became one of now 19 agreements that wto enforces. there is a legal question about what happens were a country to withdraw from the wto who already was in the gap before. as a practical matter country wants to be in the situation in the country can charge and whatever the hell tariff they want. we are in the best position to weather that because with the largest import market. a human wants to sell you. if you were a small country you would not even think about that. so we wouldn't be totally sunk because too many countries couldn't nail us for the long-term because they need our market. however, would the gap remained whether to happen, number one? and number two, would it be possible giving the legislation for the wto which doesn't have the living well clause for a president duda that unilaterally? nafta implementing those unique that we pick up anyone wants to dig into that article 107 has a living will provision that is not in the wto. it would be a legal fight at the president were to that about whether or not he has the authorit

and on the wto question, the two pieces of that, the part of the wto actually is the part that we definitely need is that little gap of 1947. that became one of now 19 agreements and wto. there's a legal question about what happens were a country to withdraw from the wto who already was in the gap before because as a practical matter, no country once to be in a situation where any other country can charge them whatever tariff they want and we are in the best position to whether that because we are the largest import market. everyone wants to sell here. if you were a small country you would not think about that so we wouldn't be totally some close to many countries couldn't nail us for the long term because they need ourmarket. however, with the running were that to happen and number two , would it be possible given that implementing legislation or the wto which doesn't have the living will clause for a president to do that leader laterally. nafta is unique that way. article 107 as a living will provision not in the wto. there would be a legal fight whether or not he has the authority unilate

the us brings more dispute to the wto than any other member country.y win that 90% of them. member country. but they win that 9096 of them. but they have lost 9096 of the ones brought against them. and i think this has to do with china. china filed complaints against the tariffs and this is just leading from that, really. clearly, the us wants another round of ta riffs of the us wants another round of tariffs of up to $200 billion on china, potentially, in the coming weeks. this is part and parcel of the america first plan of donald trump and typical of him saying that he will pull out unless it is renegotiated. it was announced at the beginning that we would do this and then this and now 200 billion which takes it to, what? $500 billion? exactly. and china will retaliate. that they are also complaining to the wto which they have recently joined. the donald trump says that if they do we will pull out. had bitter pill. ottawa puts a brave face on a sense of betrayal. they have been cornered, haven't they? they have. and this is difficult for kenya becau

and the wto. this is not someone who thinks the current trade system is something he wants to keep, and the general sense is of a man who's. it's. not entirely the way the rest of the world looks at him -- a man that is full of confidence. that is the way he feels pity think of the economy is great, it is all his achievement, of course. the tradeo hgeget deals that he things america deserves. there is a lot of buts in those sentences but that is the way he looks at it. haidi: john, did the president have anything to say about our story, our sources telling us that he is very much prepared to move ahead with the tariffs on the further $200 billion of chinese goods as early as next week? john: the fair approach to what you said on that was that he did not contradict that. he went out of his way not to contradict it. he did not officially sanction that view, but he understood it, i think. at the very least, it is extremely likely. he told a letter people inside the white house that is what he intends

i will be candid, for the wto to work well, china must be out of the wto. it gives members more options to go after them to quarantined their affect. nottrump administration did read the wto, china did. you mentioned prices were depressed for steel because of china's production. i'm wrong, but i thought general prices for steel have been up because of china's purchase of scrap steel. but is it for different prices? >> the answer is that it depends. still is a commodity and it fluctuates wildly with business cycles. so, when the economy was really heated in the mid to thousands, the price of steel was way up. hit, therecession price of steel came down. when it started to ramp back up, the price of steel went up. three years ago, prices in the united states hit rock-bottom, because there was record production worldwide. china was in a slowdown, but did not stop making the steel. and this is what happens. you have seen the price of steel go up and complaints about that. but if you look at steel futures, they are coming back down. but if any steel consumer thin

the president said organizations like the wto are unfair to the u.s. unfair leverage point to other folks in their organization. by weakening that, it seems like a negotiation tactic. caroline: it would severely undermined the multinational trading coalition that the u.s. helped build. kevin: yes. broader trend in terms of how specifically this administration has sought to negotiate with these international agreements in the past relationship the president has had with public forums. it also looks at issues on trade whether it is nafta or other multilateral trade agreements, the president said he feels those are unfair. from thatf that, standpoint, how the president renegotiate the world trade organization, it will be interesting to see specifically at a time in which relations might make the case for the other organizations from u.n. -- organizations. perspective,ley's they have disrespected the u.s.. you very much. we will have more on the interview with president trump, coming up. we will be talking about all the points he mentioned. let's get to fi

just briefly, wto.erg, trump describing and other trade deal as the worst deal ever. the wto was obviously established to provide global trade dispute relief. they have money that they want it had potentially impose against china, china has been lodging complaints, retaliating but have filed complaints. trump complains that they lose much all of the cases and are treated unfairly. actually, the usa have one more than 90% of the cases that they have initiated, but have also lost 90% that other members have wrought in. they bring in more cases than any other members of existing complaining about the specific. other members of existing complaining about the specificli forgot that they were only created in 1994. and led by the us. this is him saying, paris climate change, nafta, i want to walk away, bring the members back together to renegotiate. thank you very much indeed. you are watching the briefing. scientists in london and texas believe they've made a significant step towards an effective treatment fo

up, i would withdraw from the wto. the single worst trade deals ever made." trade the world organization is one of the key institutions that grew out of predecessor organizations. it's a key building block of post-world war ii order. mark: the president has made no secret that he believes the united states gets treated unfairly by the wto. peter: we would say the thing -- he would say the same thing about the united nations and international monetary fund. the u.s. is in a special position as the world's most powerful nation and he doesn't perceive the u.s. as having a special responsibility to the world. he and a large part of his base believe the u.s. has been ill treated and should be able to pursue its narrow self-interest, the same as guyana or nigeria or philippines or any other nation. that would be a big change for the united states to kind of narrow down -- it's what china does. china has a narrow view of its self-interest. u.s. has a broader view. he wants us to be focused just on what will help the u.s. in a

if they know cheap up, i would withdraw from the wto.hery: for more, let's bring in michael mckee. mike, this is not the first time we're hearing president trump hitting back at the wto. called: first time he is it the worst trade deal ever made. that was nafta. maybe he is going to get a deal. he is switching gears. the president has not been a fan it takes u.s.ause sovereignty to a supranational organization that can rule on whether or not the u.s. was competing unfairly in trade and can impose penalties. he has never liked that idea. most economists say we would be in big trouble without the deputy out the head director general of the wto told us today in an interview it would be one of the worst things possible for an economy like united states which is so connected to the rest of the world. he says we are working on some of the changes president wants to see. mike, is there a way to tie the story together with the idea that some of the tariff battles we have seen and tariffs imposed by the u.s., that there is this belief that if all

that's labor some wto. that's the most clear version of it that you get as compared to being -- all of these rules, country is required to conform its laws to, and so the result is you have permanent enforceable rules. like, almost only any of the treaty might cover, it has its own enforcement system. if you break the rules of these agreements you can have trade sanctions or as i'm going to explain you can be sued outside your courts, your government can, by specific company or investor who claims nafta rights and jeff to pay the company from the treasury. .. the bottom line of how it works is because it's not subject to any amendment in west every country who sign degrees and it never happened. you have this bizarre situation where this was negotiated in 92. a lot of things have changed since the actin 94, yet it's been in place for 25 years unchanged because you would need consensus from all three countries to change a word which is to say you can have governments change, policies change and this gets to

even though the creation of the wto has led to so much wealth around the world especially in the u.s.ots of trade deals have been facilitated by a global rules based system >> it's so interesting you had steve mnuchin who basically said those reports about leaving the wto, they're not accurate he didn't say they were completely wrong, but implied they were misconstrued hour do we read this is this one of those things where the president flippantly said something and it got picked up in and interview now everybody else is left to walk it back? >> i think mnuchin, if it was up to him, there would be no talk of this. this 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 perso

>> i would say the wto is the single worst trade deal ever made. and if they don't shape up, i with draw from the wto. >> and remembering two american icons. today, celebrating the life of the queen of soul, aretha franklin. while the body of senator john mccain arrives in the nation's capital taft eithafter an emoti church service in his home state of arizona. >> john believes so deeply and so passionately in the soul of america. john's story's the american story. >> indeed, it is. we begin today with the president back on the trail. this time rallying supporters in indiana, where he took aim at the department of justice, the fbi, the media, big tech and just about everybody else. i have a great team here with me to break all of it down. but we've got to start with the president. he was taking the stage in evansville, indiana, to campaign for republican senate nominee mike braun. but the speech devolved into a replay of the president's greatest hits. after two days of wild twitter outbursts calling the media between the enemy of the people and fal

on the wto question. so the two pieces of that. thatart of the wto actually is the part that we need that is little gap of 1947 now 19came one of agreements the wto enforces and there is a legal question about what happens. we are a country to withdraw already was ino the gap before because of the practical matter no country in a situation where any other country can charge them whatever they want. main, are in the best position weather that because we're the market everyone wants to sell here. if you were a small country would you not think about that not be totally sunk because too many countries could not nail note it long term market.they need a however, with woo the gap remain? to, it would be possible given the implementing wto whichn for the doesn't have the living will thate for president to do unilaterally. mav ta implementing those unique that way if anyone wants to dig into that article 107 has living will provision that is not in wto so a legal fight are were the president to do that about whether or not he has the auth

on the wto question, two pieces.the part of the wto that is the part that we need to is the the gas of 47. that became one of 19 agreements the wto enforces. there's a legal question about what happens if a country were to withdraw was already in the gap before. as a practical matter no country wants to be in a situation where another country can charge him whatever tariffs they want. were in the best position to whether that. if you are a small country you would even think about that. we wouldn't be totally sunk because too many countries couldn't nail us for the long term because they need our market. however, with the gap remain a number two, is it possible given the implements and legislation which doesn't have the livingwell clause for president to do that unilaterally. the bill is unique that way. article one oh seven has a livingwell provision. there could be a legal fight if the president did that about whether or not he has the authority without an act of congress to do that. also whether the gap would still

what i am hearing is from the g7 communique is to reform the wto. likees the president the his harley-davidson boycott calls are making any progress -- feel like his harley-davidson boycott calls are making any progress? >> i think the workforce wants to stay. i am not an expert on harleys. just as a thought. i understand some companies have to make business decisions and maybe go overseas even though we don't like it. i get that. business -- we have given them 100% expenses -- we have made it so much easier for them to repatriate their cash back to the united states. this is easier. we are the most hospitable investment business environment. i think those things should be paramount in the decision of any ceo with respect to where you are going to play ball and set up in the years ahead. president trump has completely changed the business environment for the better and that is why we are crushing it on the economy. my message today is very simple. the biggest political event this thatis the economic boom virtually no one expected could happen. we ar

but the wto has warned that that trend is about to come to an end.is all down to weaker exports, slowing car sales and increased trade tension. while free trade has enriched many nations, lifting millions out of poverty, many believe that the wto system is outdated, including president donald trump. he has threatened to expand tariffs on beijing to half a trillion dollars, which covers almost every product imported to the us from china. the international monetary fund has warned that rising trade tension between the us and the rest of the world could cost the global economy some $430 billion with america especially vulnerable to an escalating tariffs war. the us imposed 25% tariffs on $34 billion of chinese staff ranging from tractors to handbags, even umbrellas. and that prompted beijing to retaliate in kind. let's go live to china now and talk about how this is impacting both countries because they are both getting ready to slap a 25% tariff on billions of dollars worth of goods. live now to shanghai where robin is there. roberton, aaron outlined t

but the wto has warned that that trend is about to come to an end. down to weaker exports, slowing car sales and increased trade tension. while free trade has a knack reached many nations, lifting millions out of poverty, many believe that the wto system is outdated, including president donald trump. he has threatened to expand ta riffs trump. he has threatened to expand tariffs on beijing to half $1 trillion which are much others almost every product imported to the us from china. the international monetary fund has warned that rising trade tension between the us and the rest of the world could cost the global economy some $430 billion with america especially vulnerable to an escalating tariffs for. the us imposed 25% tariffs on $34 billion of chinese staff ranging from tractors to handbags, even umbrellas. and that wanted beijing to retaliate in kind. zooming in on the world ‘stop zooming in on the world ‘s top two economies in particular, the us and china and their trade war, both countries are getting ready to slap a25 countries are getting ready

courts or wait a long time for the wto to rule. u.s. would like to get rid of the canadian gary support system entirely. the canadians oppose that. it puts quotas on the amount of imported milk that can come in to keep prices stable. there are areas in which canada has compromised with the eu and countries in the tpp. there is somewhat of a room there. the foreign ministry yesterday briefed provincial government ministers and they did not raise objections. one has to assume that maybe she floated the idea of some changes rather than take them by surprise, and they were at least willing to live with some. waiting to find out if that is enough for the u.s. or the u.s. position is enough for canada. vonnie: business roundtable suggests the u.s. needs candidate in mexico to have enough leverage over china. is that true? actually, the -- canadian foreign minister is speaking and we will have a listen to what she has to say. we had the shot and we will go to their when we have sound. let's turn it up. we will try to bring your headlines. stan

he has criticized the wto. he's not letting everyone off the hook.e's a big rally. he's going to try to help the republican candidate. he's down by double digits there in that senate race. a number of candidates have been down. the republican that we chatted with earlier hopes to be a beneficiary like that after this. the same? that's why capital one is building something completely different. capital one cafés. welcoming places with people here to help you, not sell you. with savings and checking accounts with no fees or minimums. that are easy to open from right here or anywhere in 5 minutes. no smoke. no mirrors. this is banking reimagined. what's in your wallet? little things can be a big deal. that's why there's otezla. otezla is not a cream. it's a pill that treats moderate to severe plaque psoriasis differently. with otezla, 75% clearer skin is achievable. don't use if you're allergic to otezla . it may cause severe diarrhea, nausea, or vomiting. otezla is associated with... ...an increased risk of depression. tell your doctor if you have  a

you got the largest fine in wto history, a sanction they called it, $2 billion. you wind up losing 200,000 jobs and end up taking off the tariffs. even though you thought it through, it turned out to not be the best thing in the interest of the economy. what is the difference between those tariffs that were enacted in 2002 and taken off in 2003, and president trump's steel and aluminum tariffs right now today? >> well, i would say there are two differences. one is we went through a deliberative process. the president made a referral to the u.s. international trade commission which determined that there were inappropriate trade activities being used by some countries, primarily china, and basically dumping steel inside the united states, producing it at $650 a ton, dumping it inside the united states at $450 a ton. so we found the authority to do what we did on the tariffs to be found in that particular statute, 301, 302 and 303 of our trade laws. president trump decided this was a national security issue, even though the department of defense did not agree with t

go through the wto process. trish: the wto doesn't work. forget the wto. i would rather see tpp 2.0 before the wto does anything. >> you can get massive is fines and other judgments against china cause them to change their behavior. >> i want something faster. >> but you need allies. this isn't faster. this is asking the american people to pay higher taxes in order to fuel, a lurching no strategy approach to the chinese. we haven't made demands. we are not even in negotiations with them. trish: well you know, the market doesn't seem to care so much, which is interesting. >> that's good. let's hope that continues. trish: austan, good to see you. >> great to see you again. trish: cbs is on edge. les moonves is set to be on the earnings conference call this afternoon. this should be interesting. he is facing all kind of allegations of sexual harrassment. what he may say to analysts, we have some intel for you next. you're headed down the highway when the guy in front slams on his brakes out of nowhere. you do, too, but not in time. hey, no big deal. you've go

. >> is no secrrt that all caps is not liie the dude of you -- the the wto. this is the first time ww've -pheard it exxlicitly from the presideet') own mouth. in an interviee ith bloomberg news he saii he would pull the trigger" they don't shape p %the wto the worst three ddllar may, phrase previously reserved for naftaa consideringon is postponing a mmjor attack system overhaul which is set to take -peffect in january 20199 reform would make income tax automatically deductee each month from workers paychecks. other european countries. currently taxpayers a ump sum of the end of the year and he is hesitating to implement the -preform. officially the government says it needs clarifications on technical issues but many critics ssy it is political. -plowssand rrforms could cause public outcry as mergers -- as workerr see their puuchasing ppwwr diminish. >> its hhve questions abouttthii reform, it') different even if itts a well-known model that by delaying, macron french people wwen he should be reassurinn thee..6 c13 c1 >> we don't just need to delay the reform

mary: the wto defense on members adhere to the rules it has set for its health. the u.s.acting unilaterally and there was no every to go that.hat will, and stop appealing to the wto a loan will not give china the relief it seeks. we will have to have some political settlement to disclose in the united states with our own domestic politics, and of course, through international diplomacy and negotiations. ramy: very quickly, the next big question is how long this situation will last. we are two and a half months away from midterms, and it seems like this have year, this strategy by donald trump is appealing to his swing voters? mary: i certainly think that is what he is thinking on. it we are coming up toward some potential tariffs on auto deals, -- hit think will heat american consumers very hard, so we will see how they like it at the polls. that, some of these tariffs if they go away, longer-term issues with china will remain, no matter who is in control of congress. ramy: we will continue this debate and discussion. maybe lovely, thank you so much. still to come on dayb

i think there is much that can be accomplished, but within the wto rules to which we have long sincegreed and china agreed as well. not outside the rules, and not as a pariah in the world trading system. liz: congressman, before we go, i know you spent at least some years working in congress with john mccain, the senator who has agreed to discontinue his treatment for brain cancer. do you have any words for him and his family? >> i did have the privilege of working with senator mccain when i was in the house on a number of issues. i think he is a great american. he is a great global citizen. he stands for what america is supposed to stand for. i had the opportunity to visit in hanoi, where he was imprisoned for many years, and anyone who sees what he went through and where he went through it understands what a great american hero he is. liz: indeed. a great american hero. james bacchus, thanks to you. appreciate you coming on. >> any time, any time. liz: watching from the stands, closing bell about 18 minutes away. goldman sachs and jpmorgan getting in the ring. up next, charlie gasp

wto rules exit.t is where britain simply falls back on wto agreements instead of having a withdrawal treaty. there are so many problems with it. we cannot even have time to go into all of them here. that seems to be what hardline brexit people are supporting. they are looking at that is preferable to theresa may's checklist plan, which they see as far too much of a compromise for being a role take her from europe without actually having a say in the rules. we seem to besay heading toward a binary situation where it is either him -- probably closer alignment, whichat no deal scenario hardliners are calling a wto deal. caroline: well put getting to all of the moving parts. thank you very much indeed. talking of hardline brexiteers, vonnie? peter was one of the largest financiers of the campaign for britain to leave the european union. we are two years later now and he is one of those thinking britain's negotiators are not doing a good job. tom interviewed him and joins us now. tom, it is clear brexitee

she is an expert on wto, brexit. she will talk specifically about the wto process and about the exit and what it means to the u.s.

probably not surprised the wto is warning and trade.en sand going into the world's trade engine, if you like, making world trade slowdown. world trade makes everyone wealthier. the poorest the more so. they will be the biggest losers from the problems we are seeing. does the wto have any power to do anything about it? apart from saying, look, this is terrible for world trade? they do have power but their powers take a long time to come through. a lot of what is going on at the moment will be referred to the world trade organisation for those countries that disagree. the damage could already have been done. let's talk about our twitter question. we were talking earlier about apple and the fact that it has now asked for a pate and regarding what could end up being technology... we have asked people to tweet. we have had lots. many people very negative. a lot of people very negative. a lot of people talking about the fact your phone or iphone has batteries. what happens if you go to passport control and your iphone dies. you never find any

been member of wto since 2001.t has been breaking the rules all along. >> absolutely. you know who is hurt by that? american factories. i saw "politifact" before we hit the air, rated president's statement the statement was, 60,000 factories have closed down since china entered the wto. we cannot allow that. that is inexcusable as the status quo. elizabeth: eu top trade official surprised the world that the eu would talk about extending the zero tariff zone to include the u.s., so long as the u.s. does the same but the eu wants tariffs on farm goods. trump wants zero on farm goods. let's look at media reaction when president criticized eu tariffs. >> 15 months in, if he is the deal-maker why hasn't been able to renegotiate these trade deals are horrible? why hasn't he been able to do that. >> he was dismissive. impact this has on american consumers american business, potentially biggest deal, our friendship with some of our closest longest standing allies and trading partners. >> these are allies, these countries a

out of the wto unless it "shapes up" his relationship is testy to say the least.p to "benefit everybody but the u.s., and that the u.s. loses almost all of its lawsuits." analysis finds the u.s. actually wins 90% of all disputes it's raised with the wto and any case the asian equity markets have not reacted kindly trading in the red and european market trading down as well. coca-cola announced its buys the uk coffeemaker for a sum, costa coffee. so a good amount of money made there, and this is all part of coca-cola's push into coffees and a fast growing market and of course asia is a big focus there as well. >> ask you quickly, what walmart, i known, already began prepares for the holidays earlier than most seasons with a big move to take the place that has been kind of left by the retail giant or toy retail giant toys "r" us. what can you tell us? >> exactly. toys "r" us, 20% of the toy market and don't exist. on the backs of that walmart trying to take advantage, stocking up an extra 30% of toys in its stores and online to take advantage of that. toy sales up 7

he told bloomberg news that: "if they don't shape up, i would withdraw from the wto." been reported that president trump supports going ahead with further tariffs on chinese goods as part of an on—going trade dispute. india is expected to confirm its position as the world's fastest—growing major economy later today. economists expect that the ecomomy will have grown at an annual rate of 7.6% in the three months tojune, after growing at 7.7% in the first quarter. india overtook france to become the world's sixth largest economy last year, and is now closing in on the uk. indonesia's rupiah has fallen to a two—decade low, spurring intervention from the central bank as the meltdown in argentina and turkey raises pressure on emerging markets with big current account deficits. the rupiah fell to 111.75 per dollar, its weakest level since the 1998 asian financial crisis. karishma vaswani is in singapore. how serious is this? i think it would be fair to say that the indonesian rupiah has effectively become a victim, and frankly it is not just the rupiah, become a victim, and

when it comes to trade, we talk about trade wars and we can fall back on wto rules.s for the aviation industry? no, but there area the aviation industry? no, but there are a series of relationships. aviation as an economic catalyst is crucial for many countries. there is no reason to expect it will stop us from flying. norwegian destinations are very much in focus. what is it about norwegian that fits so well with iag? why is it so important?m isa with iag? why is it so important?m is a very large, pan—european, low—cost airline with a solid network. you know, it's got a presence at gatwick. that could be quite nicely consolidated with a british airways operation. that would work well. what we have seen over the last two matter years is british airways following norwegian into long—haul markets. they've gone to fort lauderdale, they've gone to california, following norwegian. it would make a lot of sense for that to be scared back to just one airline operating, because you tend to make more money when that happens. talking about budget airlines, we had one of the dar

and there are a number of areas where the united states could explore new challenges at the wto. one last point i'd like to make though on this though is that the united states, you know, one way to approach it is to negotiate new trade agreements in the asia-pacific that do not include china in which we can set high standards that are relevant to the industrial policy challenges that we're complaining about here. and that's what the tpp intended to do. so the tpp, for instance, had a chapter on state-owned enterprises. some of the challenges with state of -- state-owned enterprises is they receive a variety of government support, financing. sometimes state-owned enterprises are not just players in the market, they are actually also the regulators of that market. so i think when americans look at this, we're struck at how unfair that is. well, the tpp included provisions to address that. and even though the tpp didn't include china, by getting a whole bunch of asia-pacific countries to agree to those rules, you can have an influence on chinese behavior. not, you know, it's not go

that is to go to the wto.ionship between the european union and united states reform the wto to update its standards. the wto doesn't talk about things like trade related investment measures. that's the way the chinese steal our intellectual property. we have tools to use to get at subsidies. the president talking about creating new tools a far better direction to go and likely to result in some permanent changes new england the chinese. i'm not certain this is going to get the chinese to change their attitude on stealing intellectual property. >> ainsley: we just have a few seconds left. do you think it's important for the president to do something soon in regards to the mid terms or does he have some time here? >> he doesn't have a lot of time. people in the midwest are being hurt. anybody who grows soybeans or breeds pork is having a problem already willing to give the president piece. if they can solve the problem with chinese mistreating us great they will run out of patience and may run out of patience b

you mentioned the wto. that thing has got to be blown up.nt on tariffs and trades post world war ii. you have many more partners, you have technology. we need to revamp all of those things. just saying follow the rules, they are following the rules right now, the wto, kevin. we know that they're abecausingg them. they call themselves an emerging country. don't we need to blow up the wto manifesto, if you will, and put something in place that protects all nations? >> i think that you're right, that we need to reform it. it's not working the way it is. there is one disagreement i have, it's not really like china's following the rules. the rules are there. the problem is it takes them five or six years of deliberation to figure out that china's cheating. by then, the story's over. so they've been abusing the rules i think is the better way to describe what they've been doing and that's why there needs to be a wto reform. charles: i think you're absolutely correct. thank you for your time this morning. coming up, a chicago stunner, a dramatic wa

delaney: know, i support the wto.eed to be more assertive and i think we need to exercise more influence through the bestet what is in interest of american citizens and u.s. competitiveness. so i support the institution and i do think we need to put more pressure on china through the other david: means. i wonder if trade is on most people's issues? a lot of people we hear -- how are they doing personally in our lives? how are you as a democrat doing in the home district, how are you doing, deregulating, we have substantial growth, 4.1%. full employment or darn close to it. say it will do better? >> those messages are positive and i'm happy about them. a situation that country where 15% of american people cannot afford a $400 expense. if something happens or health care or house or car, they do not have savings or credit card capacity to handle that. that is half the population. even though traditional metrics of economic performance seemed good, the pocketbook issues is, as you talked about, not that good. i think the

if they don't shape up, i would withdraw from the wto. -- yvonne: the eu says it will withhold tariffs on auto products. the trade commissioner denied caving in, seeing they are simply try to find a positive agenda. president trump told bloomberg the offer is not good enough. iran says it will block oil iforts in the gulf production is halted by u.s. sanctions. mousseait of ber hair would be closed. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ you.: thank coming up, chinese regulators are trying to do what parents have attempted to do. looking at beijing's plan to we kids away from screen time -- to wean kids away from screen time. this is bloomberg. ♪ haidi: this is bloomberg markets: asia. looking at some of the movers in this friday's session. no respond for the likes of tencent and other gaming companies on the face of policy out of beijing. sophie: stocks getting hit hard. tencent is set for the biggest drop since march on t

they disparaged the wto, but they have allies in europe, latin america, asia, who would join them inn 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 can keep his folks unified but also that china has a number of tools at its disposal to deal with pain caused by the united states with that said, i think the chinese underestimated how frustrated and serious not only the united states but the entire global community is with their pract