Remarkable considering the last 48 hours. The dollar continuing to strengthen, and crude at a very sanguine 59. 19. Guy lets talk about what is happening here in europe. Weve got a risk rally underway. Stocks reasonably well bid. Volumes pretty good as well, so that is worth paying attention to. Pound down by 0. 3 . Brent crude down as well. The pound down on those carney comments. Lets talk about what is happening with the trade narrative. Vonnie yeah. China announcing that vice premier liu he will travel to washington next week to sign the first phase of a deal with the United States. Joining us from washington is bloomberg trade reporter shawn donnan. It would appear the events of the last couple of days havent deterred china from that january 15 date we heard before for a signing ceremony. Shawn absolutely. This is the first time weve heard the chinese confirm that the vice premier will come to washington. The real theme since this deal was first announced way back in october has been skepticism about exactly what is in the deal, and part of that has been met by a lot of silence from the chinese side. They have confirmed that there was a deal, but even then, there were some questions about when it might be signed, who might be the signing. Now we know, luca and the delegation of senior officials, including the now we know, liu he and the delegation of senior officials, including the trade minister, will sign. We expect a big crowd of Business Leaders and others, that there is a bit of a party the white house wants to throw for this. Guy when do we actually get to find out what is really in it . It is 90 pages long. When do we actually get the details . Shawn theyve started circulating the text on capitol hill. We are trying very hard to get hold of it, as you would expect, but it should be released publicly very shortly after the signing. That is what theyve done in the past and what the administration has been promising. That is really where the fun and games is going to start. We and others, and certainly a lot of people in the markets, are going to want to see how much substance there is in this deal, not just in terms of purchases, the administration saying china is promising to buy 200 billion in additional u. S. Exports over two years, but also in terms of commitments on big structural issues like intellectual property. We will get to look at the substance, and then immediately turn to the next question, which is likely to pack up at the signing. What comes next . This is phase one. When is phase two . Vonnie it took a long time, there was a market volatility a lot of market the lability, and so many headlines leading up to just phase one. It seems like they decided to bite a chunk off of the entire project in order to get something done. How long will say to take . How many phases are there going to be to this socalled deal . Shawn the president over the holidays tweeted that he expected to go to china later this year to nail down phase two. We have not heard anymore on any potential visits to china by the president. When you talk to people in the administration, they are much coyer about that then the president has been. Viewnk theres a common here in washington that while we may get some more talks this year on a phase two, and that would address important issues like industrial subsidies, the Real Foundation stones of china, but the real question in washington is whether you get a deal before the election in november this year, and i think the consensus, it is fair to say , in washington is that any phase two is elected to come before next year. Vonnie bloombergs shawn donnan in washington, thank you for all of that reporting. Guy to figure out what it all means, Chris Watling, longview economics ceo and chief market strategist, joining us on set in london. Is that trade deal going to be enough to keep moment in going . Chris i think the market is largely moved on from the trade liquidity, to a reaccelerating Global Economy, to the things that really matter ultimately. I think it is looking through and assuming it will be broadly in line with expectations. If it isnt, the navy theres a little bit of a wobble in there. But beyond all of this trade stuff, it is assumed that the Global Economy is decoupling. This is sort of a backwards step the other way. I dont think anyone really expects a very serious phase to treat deal anytime next year. I dont think that is baked into excavations. I think the sumption is it probably wont happen. If it does, it will be pretty uninteresting. Guy if it is not trade that keeps risk assets marching on, is it Economic Data . You talk about liquidity. That was a big feature of last year. The central bank the quiddity continues to provide Bank Liquidity continues to provide momentum for these markets. Chris it is continuing. We had big repos in the last week. Theres more Central Banks cutting around the world. The ongoing qe program we see in various countries is happening. When money supply growth is accelerating, and has been for six to nine months now, that is important. If you look at the Global Industrial cycle, it turned in october last year. That was its trough globally. Another way of thinking about it, the u. S. Has largely finished its d stocking phase cking phase. Orders are broadly stabilizing. They were a bit disappointing whenever they came out, but broadly they are in line. Vonnie is this market resilient . I think it is a very resilient market, and i am pretty hopeful for the outlook for 2020. Im a little bit concerned as to what will happen when and if the fed stops its repo program because that will take away quite a lot of liquidity that has been supporting this market, but at the moment it is very resilient. Look at the way it waves look at the way it behaves with the middle east issues the last few days. We really just gone sideways since september on the s p 500, and now breaking to the upside with geopolitics out of the way. It looks pretty and perceptive me. Vonnie a rare occasion when you market is right not to get too rattled. There are some signals, though, for concern, such as a bit of a , potentially am lack of breath. Too positive positioning, potentially. There are little signs out there. Have you confidence in this market . Chris i think weve got a difficult months, six weeks. You are quite right. A lot of the shortterm multi week indicators look pretty top he. They suggest the market is come too fast, too far. Thats what markets do. ,hey shoot up, consolidate reposition themselves, and prepare for the next move higher. I wouldnt jump on it at this. Evel i think the outlook is good for 2020, particularly the first half. Guy i want to come back to the thing you said a moment to go and followup on it. You said you are a little concerned about what happens when the Central Banks do step away, when this liquidity tap is turned off a little bit. Walk me through what happens. That strikes me as being a very marketnt part of this narrative. If it changes just a touch, what happens . Chris it is utterly key, and part of the resilience that vonnie was mentioning. It depends why it changes. They have says hast fully if they have successfully timed trying to turn it off, and the Global Growth driver will provide differing liquidity because people swap out of bonds into equities, it is fine. But if they miss time it, go to hard, do it too early, i think we have some real issues in stock market. It is undoubtedly one of the key things that is creating momentum at the moment. Guy in terms of what is going to drive multiples for stocks Going Forward from here, you are talking reasonably positively about the economy. How does that translate into earnings . How strong to using the earnings picture is going to be . Earnings were pretty flat last year. Input costs have the potential to rise this year. The middle of the p l could be affected by this. You could see productivity not picking up at this point. Could see input costs from other factors coming in. How finely balanced is it . Chris it is worth saying that there is no correlation between twelvemonth returns and expect it earnings and the stock market. Guy fair enough. Chris and no correlation between actual earnings and twelvemonth. Guy where do earnings show up . Chris they matter over 3, 5, 10 years. But if the economy is going to accelerate, Earnings Growth is going to do better than people expect. I think they could easily beat to the upside. That it doesnt really matter. Whether it is multiple expansion or Earnings Growth, in a sense, that is kind of the output. It is the liquidity that drives it in the Global Economy. Both of those i think youve got at the moment. Guy chris is going to stick around. Plenty more still to come. Chris watling from longview economics. Vonnie lets get a check now of global markets. He is kailey leinz. Kailey the Global Relief rally is continuing. Three major averages in the u. S. At fresh record highs. The nasdaq higher by the better part of 1 . If we take a look at some of the movers within technology, what is really leading the rally is advanced micro devices, up 4 . It was upgraded at mizuho today. Qualcomm higher by the better part of 2 , as is apple. A few things working in apples favor today. Doubledigit iphone growth in china, and holiday growth was likely very positive for the company. You have tesla falling from its record high, bears saying it might be time to take some profits after what has been an incredible surge. Far in 2020. Up so it is a higher value than ford and General Motors combined. We are giving back some of those gains today. Finally, i want to take a quick check on oil. With those easing middle east tensions driving the rally, it is taking crude lower by the better part of 1 today, bringing a threeday declined to nearly 7 . That is the worst threeday period for wti [no audio] vonnie assets. Remember, the function gtv allows you to browse all of the recent charts featured on bloomberg tv. You can save your favorites for future reference. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on Bloomberg Markets. Lets hand things over to ritika gupta. Ritika iranian aviation regulators say the boeing 737 that crashed in iran tried to turn back before plunging to the ground. The Ukraine International airlines jet disappeared from radar at 8000 feet. Witnesses say they saw it on fire in the air. Ukraine now says it is examining several scenarios. Among them, a missile strike and terrorism. Filings for u. S. Unemployment benefits fell to a fiveweek low. Toless claims dropped 9000 214,000, the latest indication the labor market remains solid. She government the government comes out with the december jobs report tomorrow. Bushfires in australia are likely to way down the economy. Todman sachs sees hits develop into an production, some of that offset by an increase in fiscal spending. The fires have burned an area larger than ireland. Prince harry and his wife Meghan Markle may become stars on the public speaking circuit. The two have announced they are stepping back from their roles as senior memory of the British Royal family. They say they will work to become financially independent. One agent says harry should be able to command about 500,000 per appearance. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Vonnie thank you. We are back now with Chris Watling, longview economics ceo and chief market strategist. Let me start with something Richard Clarida, the vice chairman of the fed, said today. He was speaking in new york, talking about u. S. Growth. Lets have a quick listen to this. To distant we want was between the baseline view and the risk around the view. I think private sector forecasters baseline view is for inflation to begin to move towards 2 , but i would be honest in confessing that if there is a risk to that outlook, it is skewed to the downside. Ere. Ie rich clarida th we also had byron wien on this morning from the Blackstone Group saying that he also thinks growth is going to underwhelm this year, and he actually thinks there is going to be two fed cuts. Where do you see gdp growth coming in . Chris i think growth will reaccelerate. I think the interesting point is inflation, as Richard Clarida said. The risk is to the downside. A lot of what we look at would suggest core inflation is going to be not terribly impressive at all in the first half, 3 4 of this year. Anda is basically exporting a lot of deflation at the moment, and that gives you a good 12, 18 month lead on what is going on in u. S. Inflation as the states. It is all pretty tame. I would be very surprised if we got two rate cuts this year. I think that is pretty unlikely. I think the fed will just hold pat. I think what is interesting is what they do with this repo program. Then obviously, if we dont get enough inflation, we can continue to grow at an accelerating pace. What solves that conundrum . Chris well, when do we eventually get inflation . Im sure as we accelerate through the year and into next year, eventually we will start seeing a tighter labor market. Theres is a real conundrum out there. Why is Wage Inflation growth stabilized the last 12, 18 months . Part of that is the u. S. And Global Economy slowed into 2018. The other part is if you look into the oil states, where oil price came off 2018 into 2019, Wage Inflation fell dramatically. If oil price sustains this reasonable strength year on year, you will get more inflation out of the oil states. In aggregate, you get more Wage Inflation out of the states. Then i think you will start seeing some general cpi pressures. The first two or three quarters, i think it is going to be muted or look through and not worried about. Guy at the bank of england, talk about what happens next. The market assumed the risk to the upside and the downside were pretty symmetrical. Carney was talking earlier today, and the hints seem to be actually that the barrier to cut is significantly lower then maybe the market has assumed. Is that the correct interpretation . Chris yeah, and i thing they should have got there sooner. Everyone around the world has been cutting rates. U. K. Is now much less of an issue, and growth is sort of sulky. We will probably get a brexit bounce. We had a bit of a bounce in the currency. Guy youre not getting it much in the retailers at the moment. Theres not much of a sign, judging by the sainsbury numbers or much else. Chris i think it will come. And i think a rate cut is a great idea. Guy rate cut or rate cuts . Chris well, theres not much to cut. Guy lets assume 25. Do we get down to their . Chris one or two from here, it is not far. Guy but will get there . But will we get there . Chris possibly. I would go for one cut. In the sense that a lot of the cuts have happened, Global Growth is lifting, and the u. K. Should get a bit of a bounce anyway, one cut is a nice oomph to help it along. Vonnie what about a trade agreement . When do we see the first of them, and will the u. K. Managed to get good terms . Isis well, my understanding from boris johnson, there is one already ready to go in south korea. Fast tracked deals negotiated through out this year. The real question is the European Union and the u. S. , which comes first and what terms we get out of it. The reality is, like everyone else, or like many people, i think we will get an ot deal with the european yet get an ok deal with the European Union. I think this is much less important than it was. Both sides need to do a deal. Theres notion at against to try to keep the u. K. In the European Union. Thats done, and it is just a straightforward negotiation for a trade deal. It probably wont happen by the end of the year, but im pretty sure it will happen and be decent for both sides. The u. K. Economy is not really about trade. Theres a little bit of uncertainty thats not driven rate cut would reinforce the Housing Trend and the acceleration in the economy. Guy chris is going to stick around. Chris watling joining us from longview economics. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the rpm close on Bloomberg Markets this is the european close on Bloomberg Markets. The dow is up zero point 6 , the s p 500 up 0. 5 , and the nasdaq up 0. 8 . Some of the best performers in the s p include the chipmakers, amd for example, and starbucks up 2. 25 . Guy in europe, the dax is outperforming. Stocks like lufthansa doing well. Stockshas got 20 of oil has got plenty of oil stocks as a result. Underperformance is coming through for the cac 40. We will deal with the details next. The european close is coming up. This is bloomberg. Guy 30 seconds to go until the end of regular trading in europe. 40 has gone down and down throughout most of the day. That is the picture in terms of the 30,000 feet you. This is the view in terms of how the session is developing. The stoxx 600 has moved higher. We are not quite at session lows, but nearly. Volume has been all right. Individual markets look like this. Oil has been a laggard today. They are that in mind. That in 100 bear mind. The ftse 100 up. 3 . The cac 40 a little bit of a laggard. It is stocks like total that have not done well. I have not loaded up the grr, the sectorbased story, but my excellent producer has. Let me show you what is happening from a sector point of view in europe. Technology has done well. Suppliers, they have done well. You can see what has done an apple on wall street. Tier three been the suppliers that have gone well. Silicon has gone well, cars have done well. A big conference coming up next week. A lot of news around that sector. Get ready for that. The bottom end of the market looks like this. This is where we have seen a weakness. Basic resources have come down. Oil and gas have come down. It is the commodity story. 7 and. 9 . Some of the travel stops doing better. Stocks of the travel doing better. Marks spencer with numbers from the christmas period. One of the retailers that have not done well during this period. We were talking about the brexit not showing up in consumer spending. That stopped being hammered. Air france out with numbers today. That helps. We will talk about what is happening with the Airline Story in a moment. 3. 88 , plus we are seeing the deal story helping out the big airlines. Ams is one of the stocks i wanted to mention benefiting from the apple narrative. It looks like that has been rippling a class rippling across the supply chain. Ams up 2. 2 . U. S. , a verye cheery market. 6 as is thep doubt up. 6 , as is the dow jones. The 10 year yield up to the top end of those ranges we saw earlier in december. Not that long ago. The dollar index at 97. 5. Strength there. Most of the other currencies are weaker. Crude oil at 59. 54. Lets take a quick look inside the s p 500. , micro the chipmakers devices continuing to rally helping the sox. Starbucks higher as well. When it comes to retail, it is not a good picture overall. Lets have a look at what is happening at the bottom of the market. Capitulation on the part of kohls. Macys have gap and giving up any of the gains we saw earlier in the year. There was optimism there mightve been lastminute shopping. That optimism is being thrown out with the bathwater. Guy lets talk a little more about what is happening in europe with a macro point of view. Still with us is Chris Watling joining us from longview economics. There is a view in the united betes that you want to divested around the world this year. That europe is going to be a little bit of an out performer. Maybe not from an economic point of view but from a market point of view. Water onbit of cold that earlier on. What you see coming out of europe this year . We have just seen the european close. What kind of performance am i going to get . Chris a very good question. Europe is interesting on a three to six month view because it is always interesting when there is a global balance. I would not buy it on a valuation basis. I can make a valuation argument the u. S. Is cheaper than europe. This is basically down a few sector adjust and look at a medium view. What we forget is the sector waiting for the u. S. Is much more tech heavy at the u. S. Is more value heavy. Less financials that used to be. If you adjust for that, it looks better. The u. S. Looks cheaper. Guy if you just look at the averages, europe is trading much closer to its longterm average. About that tell us even if you put the sector overlays on top of that, what does that tell us about what last year delivered and the kind of momentum we have going into this year . Chris valuation is not a great judge of shortterm movements in markets. It is not a great predictor of where the markets go. If you have extreme relative valuation, it can be helpful. , 13. 5 look at the s p 500 times its low in december 2018, it is now 18. 5 times. It is a big move. It is a big move in the p e ratio. That might concern you. As i said, i think it is about liquidity, not valuation. Would like a bit of europe in the shortterm it is an interesting trait because of the cyclical bounds, but i would not fall in love with it. Vonnie lets talk of emerging markets having their year. What you think of emerging markets and particularly china . Chris i am in the same bucket of europe. They are classic beneficiaries of cyclical bounces. Emergingmarket performances tend to do well if global trade is accelerating and so on. There is every chance that will happen this year. ,hina is quite a cheap market narrowing down within emerging markets china is quite cheap and you will get more stimulus. I think we are overweight china, we are overweight emergingmarket, but on balance i would rather be overweight developed markets in emerging markets. What hasat vonnie all of this trade talk in negotiation and companies stalling, what has all of that done to countries surrounding china . The other Asian Countries . Can we expect they can feel their economies are developed enough to deal with the situation heading towards 2020 and 2021 . Chris it is a terrific question. The economies who have been beneficiaries of outsourcing from china and southeast asia, the likes of the philippines, vietnam and malaysia are doing quite well over the last 12 to 18 months. They are making back a little bit on the latest round of trade deal. That is going to be in enduring theme. Within emerging markets, the beneficiaries of china are a quite interesting place to be. It is a very good point. You take a look at what is happening in china, you have the shift towards a consumption driven, domestic focused story. Is that good for the rest of em, or is that just good for china . Chris is a mixed bag for the rest of em. If you are commodity exporter, if you are to lay, that is if you are chile, that is not so good for you. Into commodityem exporters and importers. For the commodity exporters, it is less of a benefit. It is consumer and consumer goods, it is consumption strength that benefits all sorts of economies. It is a mixed bag. It comes down to the commodity story. Guy thanks for stopping by. Chris watling joining us from longview economics. Chris after 15 years vonnie after 15 years in charge the ceo of is retiring. Joining us in london is Bloomberg Christopher jasper. What is next for willie walsh . He is well respected in the industry. Christopher ostensibly, he is retiring. He is only 58, so who knows . He has been there for 15 years as British Airways ceo and then led the formation of itg of iag new merger with iberia. Airlines various other. Welling in spain, to create this ,ig European Airline group which certainly over the last few years has proved to be more efficient than competitors such as air france. There been rumors he could do other things. Is he done . He has radically transformed iag , radically transformed the european landscape, do you think he is done . There is a job opening at emirates, there is may more work to be done. Christopher if he does retire it will not be for want of offers. He has been such a dominant personality and european aviation. Certainly is one of those big hitters who transformed aviation outside the u. S. It is hard for me to see him kicking back. Guy,he is not that kind of is he . Christopher no. He is a driven character. He is not someone you would think of as being particularly laidback and yearning for his pipe and slippers. We will see. It would not be a huge surprise to me. Vonnie he had indicated in november he would leave and two years. Quite quickly after that he announced his retirement, which will formally happen at the end of june. He does have a few more months. Why was he so good . Why did he manage to fend off all commerce and all comers and dominate an industry that had a few sharks and it . Christopher there been several elements. We cannot overlook the structure. It is aot a brand, holding company. It has allowed British Airways to merge with iberia, which is one of the sick man of europe, and transform it without too much union strife. Expanding quicker than most airlines in europe. 10 traffic day, a growth. Upon trust with air france a contrast with air france which is still squabbling and falling out over who should get the most resources. On his hands at that business. Can i ask you about the max the airllie placed at show in paris. He clearly got a great deal from boeing for the 737s. Do you think the fact that he is departing could put that order back in play . Christopher unless it is signed off before march he leaves later in the summer but he is stepping down as ceo and from the board in march. If i was going i would want to get that if i was boeing i would want to get that aint before then. It is on i would want to get that inked before then. The likelihood is it will come back into play. Iberia, i do from not think will feel completely settled with that order. Depending on what happens with the max, i think it is possibly still up for grabs. Broadly, what can we expect out of the Aviation Industry in europe in 2020 . There are obviously a few potential casualties from competition. What is your outlook . Christopher the picture we saw last year we can expect to is one of the2020 big players doing well, managing to take out cost. Vonnie im afraid we have to leave it there. We have some breaking news. President trump answering questions at the roosevelt room in the white house. Pres. Trump it is a tremendous percentage. Pretty much all for the farmers. Also bankers. Also regulations for a lot of things are covered that people will be surprised to see. It is a big chunk of it and we will start right away negotiating phase two. It will take a little time. I might want to wait to finish it until after the election. By doing that i think we can make a better deal. Phase one is a phenomenal deal. Could be up to 50 billion in farm product. Was 16 they ever did billion. They go from 16 billion up to 50 billion. That is numerous times more than they were buying in the past. It will have a huge impact. I see farm prices going up. I see corn has had big increases. Cattle has been doing well. The farmers like me anyway, that is what i liked about the farmers. Able id do is i was they were targeted by china. They say the farmers like trump so we will target the farmers and they did. The first year was 12 billion, and i took 12 billion and i asked the secretary of agriculture what you think . He said 12 billion. I think that wouldve caused consternation. They were hit for 12 billion and i took 12 billion out of the tariffs. We had tens of billions left over and i gave it to the farmers. I took 6 billion billion dollars out of the tariffs and gave it took 16 as took i billion out of the tariffs and gave it to the farmers. China has already started to buy. The deal is done. The big question i have is whether or not the farmers will be able to supply that much, because it is the biggest contract ever signed. I think it will be great for the farmers, but also great for regulatory, great for banks, great for finance companies. Then will be covering the opening of china and various other things in phase two. Impeachment, would you support a deal for witnesses if that included testimony from adam schiff and hunter biden. Pres. Trump i will leave it to the senate that i would like to hear from the whistleblower and adam schiff and hunter biden. Hunter biden has no experience, making no money, and all the sudden he is taking millions of dollars. Would you leave the union for that . I think so. [laughter] i know so, but im not going to tell. I would like to hear from hunter biden i would like to hear from a corrupt politician, adam schiff. He never knew i would release the transcript. He gave a sentence that he made up and was not said in the conversation. That is why a release the transcript. We release the exact transcript. These are plucked these are corrupt politicians, it is a hoax. I would like to hear hunter schiff. Oe biden, adam the informer that never showed up. Once i released the transcript you know what happened. The informer never showed up in the second whistleblower, whatever happened to the second whistleblower . The second whistleblower disappeared. There probably was not or maybe we know who the second whistleblower was. He never showed up because they were unexpectedly met with the actual conversation, the exact conversation. If we do that, i would like to have those people plus others testify. It is the greatest hopes ever perpetrated on the United States government. This has gone on since the day i came down the escalator. This is not just ukraine. This is the witchhunt. This is the whole thing with russia that turned out to be a fabricated plot. The ones who are guilty are the democrats, the dmc, and all of the dirty cops involved that we caught. Comments,n mike lees did your National Security team really say it would be wrong to debate military action in iran . Pres. Trump i had calls from numerous senators and congressmen and women saying he was the greatest presentation they have ever had. Mike and rand paul disagree because they want information that i think is hard to get. It is ok if the military wants to give it, but they do not want to give it. It has to do with sources and information we had that should remain at a high level. Could we individually give one or two some information . Possibly. I get along great with mike lee. Ive never seen him like that. Other people have called and said it was the best presentation theyve ever seen. Let me tell you what was the best. The result. We killed a man who killed Many Americans and many people. Thousand and thousands of people. When i go over to walter reed and i meet these young incredible folks, mostly men but also women, where their legs are gone, their arms are gone, and some cases the legs and arms are gone in the face in the body is badly damaged. Five years ago they could not have lived and today they can live because of the wonders of medicine and the wonders of walter reed. The job they do, the medical doctors. I will say this. We caught a total monster. We took him out. That should have happened a long time ago. We did it because they were looking to blow up our embassy. We also did it for other reasons that were very obvious. Somebody died, one of our military people died. People were badly wounded a week before. We did it. We had a shot at him and i talked it and that shot was pinpoint accurate. That was the end of a monster. That was the second attack. We did not started. They started it by killing one of our people and wounding other of our people. That call retribution. Ukraine, if you look at what happened with ukraine, that is a hoax. This is a hoax. Iran ran hit us with missiles. Should not have done that. They hit us. Fortunately for them, nobody was hurt, nobody was killed, nothing happened. They landed, did very little damage to the base. We had a chance to take out a monster, we took him out, and it should have been done a long time ago. Congress were to take further military action against iran, would you seek further approval . Pres. Trump we will say. I should not have to because you have to make splitsecond decisions. In certain cases i would not mind doing it. You know what i have gotten out of this week . When i see nancy pelosi trying to defend this monster from iran who has killed so many people. Semi people are Walking Around without legs or without arms because he was the big roadside bomb guy. He was the one who sent them to afghanistan and iraq. That was his favorite thing. He thought it was wonderful. He doesnt think it is wonderful anymore. When nancy pelosi and the democrats want to defend him, i think that is a bad thing for this country. It is a losing argument politically. Jcpoa and also the sanctions implemented, what is left . Pres. Trump jcpoa is close to expiring. If i did not terminate it, it expires in a short time. 150he problems million, 1. 8 billion in cash, and that that money was used for terror. If you look at iran, it was not so bad until they got all the money. They use that money for terror. That is when it became bad. It got bad when they have 150 billion, 1. 8 billion in cash. , the Iran Nuclear Deal that did not work, the iran that is nomething good for our country. It expires in a short time. That means they would be on their path to Nuclear Weapons. For me is about Nuclear Weapons more than anything else. I ran cannot have a nuclear weapon. Iran will never have a nuclear weapon. They understand that. We have told them strongly. Iran is not wealthy like it was when president obama handed them 150 billion. They are much different country. We will see whether or not they want to negotiate. Maybe they want to wait until after the election and negotiate with the week democrat, someone like a joe biden or a pocahontas or a buttigieg or one of these characters. Maybe they want to wait. They are probably welloff doing it now because if you look at the pauls and if you look at what is going on if you look at the polls and look at what is going on, we are doing very well. They are being hurt by the sanctions. As to whether or not they want that, it is up to them. They can string out there country. Iran is a mess. They can straighten out the economics of their country very quickly. Lets see whether they negotiate. When should we expect to see sanctions on iran following the attack . Pres. Trump immediately. It has already been done. Weve increased them. I just approved it a little while ago with the treasury. What will they be against . Pres. Trump we will put out a minor announcement. Far is a major event in so ive had no questions on the fact that we can build a highway in a small fraction of the time, that we can build all of these beautiful bridges we want to brittle we want to build but we cannot get approval. Are you shocked when you hear that . They should be having questions. The plane that went down from iran, what you think happened . Pres. Trump i have my suspicions. I do not to say that because other people have those suspicions also. It is a tragic thing when i see that. It is a tragic thing. Somebody could have made a mistake on the others. T was flying not our system, had nothing to do with us. It was flying in a rough neighborhood and somebody could have made a mistake. Some people say it was mechanical. I do not think that is even a question, personally. We will see what happens. I dont know. I dont know. That is up to them. At some point they will release the black box. Ideally they get it to boeing. If they give it to france or some other country, that would be ok. Ideally that will be released. Somethinging very terrible happened. Very devastating. Venezuelauation in has not gone smoothly for some people, likely yourself, have hope. Pres. Trump i never thought it would go smoothly. It has never gone smoothly since it became a socialist country. I never expected anything to go smoothly. We will see what happens to venezuela. It is a great case when i say this country will never be a socialist nation, that is a great case. That was a wealthy country 15 or 20 years ago. A really wealthy country. Now they do not have water or food. We are supplying a lot of food or water. It takes time. Ive only been here a relatively short time. We will see what happens. Are you prepared to do anything else . Pres. Trump i will not say that. We have a good strategy. We are helping people. Columbia is helping a lot of people. The nations our helping people. They have a system that is broken. He mentioned a plot to blow up the embassy in baghdad . Pres. Trump i think it is obvious. This was the antibenghazi. They showed up a long time after took place and saw burning embers from days before. I said get out today, immediately. They said we could have it tomorrow. I said they have to go right now they were on their way quickly. They got there quickly. They could have done that with benghazi. Same thing. Did, youdone what i would not know the name benghazi, it would not be a famous name. Now it a famous name. This was the antibenghazi. Quicklyhe apaches there , they were doing the flares. If you look at the protesters, they were warriors. They were iranian backed. Some were from iraq. They were iranian backed, and they were looking to do damage and they were breaking the windows. Those are structurally strong windows. Had they gotten through, i believe we would have had a hostage situation or we wouldve had worse, we wouldve had a lot of people killed. Those people were going to do serious harm. They were soldiers. We stopped it. That was a totally organized plot and you know who organized it. That man is not around any longer. He had more than that particular embassy in mind. Do have a problem with john bolton testifying in the senate trial . Pres. Trump i always got along with him. He did not get along with some of our people. That will be up to the senate. I do have to ask the lawyers protectwe have to president ial privilege. When we start allowing National Security advisers to go up and say whatever they want to say, we cannot do that. We have to protect president ial privilege for me and for future president s. I would have no problem other than we have to protect, people cannot go up and say whatever my thoughts are, whatever your thoughts are about our countrys views, you do not want that to be out. We have to protect president ial privilege. You said yesterday you want nato to do more. Have you gotten any indication from them . Pres. Trump i spoke to them yesterday. I spoke to the secretarygeneral yesterday and we had a great conversation. I think he was excited by it. I came up with the name, nato, middle east. Natome. Usmca. Could remember i am good with names. They cannot remember usmca, i said remember ymca. If you add the two words middle east at the end. Well . , doesnt that work he is not getting it. He is not smiling. Before i ran he was smiling, now he is not smiling. More nato personnel in the region . Pres. Trump as opposed to us. This is an international problem. We can come home, we will this is ane home and international problem. We caught isis. Wegot 100 of the caliphate, got thousands and thousands of isis fighters killed and thousands of thousands, tens of thousands are in prison right w