After democrats succeeded in blocking judge gorsuch. Thousands of south africans to mr. To peacefully today, calling for the resignation of jacob zuma. The presence dismissal of the countrys finance minister has corruption. Rns over the Nobel Laureate made a rare public appearance to support the protests. News 24 hours per day powered by 2600 journalists and analysts in over 120 countries. This is bloomberg. Scarlet live in bloombergs world headquarters. Joe we are 30 minutes from the close of trading. Heading the dollar is for its best we can two months. Joe the question is what it you miss . Scarlet the lowest level in almost a decade, but it could signal steady progress. National Economic Council director gary cohn ways in. Increased tensions with syria. A missile strike in syria is putting moscow and washington at odds. We will hear from the dean of the John Hopkins School of advanced International Studies next. Early growing pains, the chump administration and congress have yet to reach an incentive on tax reform. We speak with david perdue of georgia. Lets look at where the major averages stand. Abigail doolittle is standing by. Were looking at mixed trading action. Very similar to what we saw. Very small gains and losses. We had big or small gains now that the nasdaq was up slightly. Seeill be interesting to where the major averages. Today as itnds on finishes higher today. A little bit of mixed trading action. A disappointing payrolls report and earlier we had all the hatings trading higher. Plus the missile attack in syria. Very interestingly they are not higher. We have the dollar index, which is very much a growth asset. In either case it is at its highest level. Haven bonds are at are selling off. The 10 year yield is up for basis points. Been up 1 now up 3 10 of 1 . The dollar up against the yen. Now kind of mixed unchanged. It is interesting to have that mixed with the action we are seeing. Investors not knowing to make of what is happening this week, including those fed minutes. One sector making a clear directional move, we have all the fed stocks trading higher. We did speak with the Bloomberg Intelligence analyst about half an hour to 45 minutes ago. He thinks this is a visceral reaction, that unless the profit outlook would be boosted, a unless theion profit outlook would be boosted in some way, that again it is more of a kneejerk reaction. There is some chatter that perhaps that missile attack in syria will help President Trump gain the additional 30 billion he has requested in defense money. That would affect the profit outlook. At a look this is out of the election. We have the s p 500 in white. A bumpy and bullish ride. Activity we rebound have seen in so many different asset classes, including the 10 year yield. We see it here for the defense contractors. On a rally today, it appears may be that will break out to the upside. They are outperforming the s p 500 out of the election. Joe thanks, what did you miss . Our guests at about the ramifications in the market on syria. Joining us now for his take, dean of john hopkins university. Thank you for joining us. Do you feel like you have any sense of what a followup would be here . Expect to see more strikes in the coming days or weeks. It is much more free domestically motivated action. He lost go down a withof getting into a war the outside regime or confrontation with russia. Theink he hopes that russians will control a sod, that there will be no further provocation and that this will be a single punitive action punitive act that will require no further intervention. Scarlet has his action made a diplomatic solution all but possible . It makes it more difficult to talk to the russians because they are angry. The russians know the provocation came from a sod and of course they have to talk tough, because otherwise they lose face in the region. Are trying to beat their chests and look strong. It may get to a point where they find a solution to this conflict rather than to risk another confrontation with the United States down the road. A sod doesnts of change his behavior and we see more atrocious images, such as the one that spurred these airstrikes . I dont think he will do this again. Largely because he didnt even need this airstrike. Movingon the ground were steadily and clearing and taking ground and airstrike largely to test with United States interested in intervening, or he was trying to force the capture at a much faster pace. I think to continue to eat up New Territory one village at a time going forward, i dont think a sod would like to get the United States in this conflict. In hearingrested what you think the region response will be. The latest stage i dont think the islamic state. Until now they had seen a United States that was not willing to intervene in syria regardless of what the atrocity or the a profit occasion or the provocation. Iny can conceive a scenario which the United States may get engaged and push back against russia and iran. And likely they will take part in this. Turkishee a much older attitude and that may escalate the conflict. Joe you are talking about in an ideal scenario russia could control a sod control assad. To the have the tools and inclination to diffuse things and get him to behave more responsibly . Guest they can get him to not use chemical weapons. I dont think the russians want to become provides on the future of syria in a way in which he would have to step down or russia would have to give up on what they have gained. The russians are playing this game like they are in the middle. D loses or false or leaves, it would be a diplomatic defeat for putin. It would make it more difficult for him to posture as a world leader. There is no way in which i see the russians would back away from assad. They will try to determine the United States from doing anything further. Crisis management in moscow. It is not a change of strategy or policy. That al you made it clear russia is behind him. What i find interesting is the u. S. Had made pretty clear that there were not intend in ousting him. Step back, take a what is the logic behind the chemical weapons . What had he hoped to accomplish . Either he was testing the United States or had come to the wrong conclusion in which the u. S. Wasnt going to come in with regard to what he does. Finally he thought to demobilize the opposition. It was a strategic mistake. He is gaining on the ground without meaning to do these things. This now has created a competition for him. It has got the United States closer to some kind of involvement. Dont know phil was a coincidence coincidence or not, unnoticed that President Trump was meeting with his chinese counterpart and one of the key sources of tension was the situation in north korea , what do these actions indicate about how the u. S. Will attempt to pursue its interest their . Obama refusedent to enforce the redline in syria, it caused a great deal of andppiness in korea japan southeast asia. He was understood that the unit since is not willing to enforce its own redline and very difficult to persuade the chinese and the North Koreans that the United States may understand in their way. I think many people look favorably upon last night because at least it indicates that the United States is willing to enforce its red lines in beijing will take notice. There are limits to how far it and definitely north korea could potentially end up in a military situation and they should never assume there is no way in which the United States may militarily engaged. It may give china more cause. Pressuredoes it give on chinas act more unilaterally . Guest i think the dangers for the United States to dry redline. At least the chinese calculate you have a president who despite what he said on the campaign willing to use military force in circumstances as was we saw on syria. The calculation of how far you push the envelope has changed. More likely that smaller countries in asia or the middle east are likely to do more provocative things on the assumption that the United States can always come in and back them. This strike has a broader global implicationa in changing the way everybody is looking at the United States. I think that is a challenge for the Trump Administration. Do just what he is going to in syria, but to engage globally to make kinds of allies sure their interpretation is in line with what we are intend to do. Thank you so much for joining us. Coming up we will be hearing and what theen Trump Administration is doing to help the underemployed. Federal open reserve bank of indianapolis takes on jamie dimon over comments dimon had made over bank regulations. This is bloomberg. Joe the march u. S. Jobs report suggests the labors market may be returning to a more sustainable rate of progress. Bloomberg economic adviser gary cohn gave his testament of the jobs report to bloombergs david westin. I had an opportunity to talk to the president. We are pretty please with the jobs numbers. When you look at the unemployment numbers going down, both the 4. 7 number and down as well as the higher the number we spend a lot of time looking at the number coming down by 3 10 of a percent. We are pretty please with what is going on in the unemployment picture. You take that and put on top of jobs. Ll the we talked to moving manufacturing back in the United States. We are excited about what is going on in the future here. Number, is that perhaps one of the most important things you look at as you look at this report card every month the . The president and i have spent a lot of time talking about that number. The underemployed people, the people working in jobs, that they could work in a better job, and that number coming down 3 10 of a percent is very exciting for us. We are happy to see that number below 9 . We would love to get that number lower. What do you and the president think you can do to address that number . What are the specific initiatives . Is it fiscal policy, tax reform, deregulation . I would say yes to all of the above. We started a multiple track system, the regulation is one of the easier things we can attack. Deregulation we can do through personnel by putting new personnel through jobs. We can deregulate some of our markets and industries. You have seen some of those things come through. You have seen them come through by some of the agencies. On tax reform and we think tax reform will have a very big impact on job creation. You can see the president is doing this every day. We bring more and more jobs back to america, we will continue to increase the job opportunities. We also need to go through rereading through retraining. Have seen them talk about retraining our labor force. And creating a more wellrounded labor force. We have a lot of jobs that need to be filled. Training our applicant pool to phil those jobs will be exciting for us. We think we can do that quickly. That was national Economic Council director with bloombergs david westin. Fed president Neel Kashkari speaking out of what he says are incorrect assertions by cashgan Ceo Jamie Dimon card was asked why he is going after a wall street ceo so publicly. Our job is to call out wrist and i amsee them be at no jamie dimon and i like and respect him. When he says things i believe are incorrect i think it is my responsibility to speak out. The fact is too big to fail it has not been solved. American people and Congress Need to know that. We have offered them special offer them potential solutions. I would be interested to get your response to it via the Neel Kashkaris looking to get aim role on the fomc. When some of the cant argue on or facts or analysis. They are left with trying to criticize the messenger. I interpret that as a white flag of surrender. The analysis stands on its face. This goes back a couple of years. People agree with you . Do other people share your view . Corrects several have reached out to me and said thank you for continuing to beat this trump, for continuing to wait to raise this issue. We keep pointing out the facts, showing where other folks are wrong. That we will motivate people. I like the fact there are some new stories coming out of the administration saying theyre looking at a financial reform trying to address too big to fail. I think we all need to keep pushing in the same direction and let the American People decide. Do we want to live where one of the biggest banks are supported by tax players implicitly. Or do we want a more rational system . Job to give them the facts and informations they can make that decision. If it is a responsibility to call out risks where they exist, and if other members of the leadership feel the way you do, why are we not hearing from them . Each person should make their own call on what they are covetable taking on. Dealve lot of issues to with. Monetary policy is our core mandate. I will leave it to my colleagues to decide which battles they want to pick. People, we the only are one of the only two people who are literally in the middle of the financial crisis in 2008. This is burned and to me how hard it was to arrest the dominoes from falling from one big bank to the next big bang to the next big bank. This is why put this at the forefront of issues, because i am one of the First Responders trying to arrest the crisis. Is Neel Kashkari on bloomberg daybreak americas. A heightening of international tensions, what are investors flocking to . Scarlet lets turn to the market reverberations are the attack on syria. Have 7613, it really shows how safe havens caught a bid initially on news that the u. S. Launched air strikes the syrian airbase. Right around the time the headlines came out and then a big drop in the dollar. And then a final one is the 10 year yield going down as people snapped up treasuries. Had the of course we jobs report, which is a disappointing number on the face of it. What has happened since then has been very interesting. The dollar has now recovered and now we see the yen losing ground. The 10 year has reversed course completely. The launching of these strikes, which cut people by surprise, did not have a Lasting Impact on these markets. Happenedhing that today, the jobs report. Month of retail employment change going back the last 10 years. Months have been the worst two months for retail since 2009. We see a show big time in the jobs report. A little bit of come to jesus moment. Little changed here as we get ready to close out the week. This is bloomberg. Were moments away from the closing bell. Treasury yields gaining as investors look at a worse than expected jobs report. I am scarlet fu. And i am joe weisenthal. If you are tuning in live on twitter we want to welcome you to our closing bell coverage every day from 4 00 to 5 00 p. M. We begin with market minutes on this friday. We had incredible headline news. The u. S. Began military airstrikes in syria and a disappointing jobs report. When you look at the job close, it is surprising. It is marketable we cannot get more volatility despite these things going on. If you look at the breakdown prettys p 500, it was mixed all around. Utilities the worst performers, down 0. 5 . ,onsumer staples and telecoms the defensive sector says no sector moving more than 0. 5 . Many moving minimally, unchanged. That is the read on the sector breakdown. You mentioned volatility and i wanted to highlight the vix. There has been a pickup and a slight move higher over the last couple days. If you look at it over the past one year it is small. Joe there is traction. Scarlet a little bit of a shift higher. 13. 66erage for them vix, and we are at 12. 8. It is noticeable. Joe definitely something to keep an eye on. Scarlet in terms of individual movers, we have bulk and materials up 4 . The s p 500 after california lawmakers approved a plan to boost gas and vehicle taxes to boost infrastructure repairs. Gains following the u. S. Air strike on syria and a quick note on jpmorgan, down one third of 1 . Andaw utilities were down generally not doing as well. Joe lets look at government bonds. Very interesting action. [no audio]d higher a very tiny pods in the pace of rate hikes on the Balance Sheet. We see a sixmonth chart of 10 year yields in that range. The dollar took a dive but highlighted completely within 30 minutes. Truck in stockholm ran into the middle of a department store. You can see the euro weaker versus the dollar. The ruble and the turkish lira seeing sharp declines after those headlines of the u. S. Airstrikes in syria. That is something we will continue to keep an eye on. Joe and on the commodities front, we look at oil and gold. Anydoing well, gaining on escalation amid tension. Well quickly i want to take a look at the onemonth chart of iron ore, down 11. 6 . People talk about rising supply out of australia and brazil and concerns about credit constraints in china crimping demands. Keep an eye on the ugly looking iron ore. Scarlet those are todays market minutes. We have headlines here from Rex Tillerson, the secretary of state. He is making comments about the summit between President Trump and president xi jinping of china. He called it frank, open, and candid. This was in his briefing to reporters on the china discussion. President trump stated a need for china to level the Playing Field when it comes to trade, and said President Trump agreed to visit xi jinping at a future date. No further specifics offered on that. Joe this seems to be the general theme, that it was not about achieving any specific, whether on the security front or trade front, but as people we talked to in the runup pointed out, the real goal of this is in large part to build a rapport between the two coup leaders. At least based on the official comments that is what it appears to be. Scarlet a getting to know you trip. Lets take a deep dive into the bloomberg. You can see our charts using the function at the bottom of the screen. I want to put the jobs report into context. The backdrop is that President Trump has promised to create 28 million jobs over the next decade, on average 2. 5 million a year. No president has ever averaged that. Clinton came the closest at 2. 4 million. Will highlight that that was during the boom years of the 1990s. President obama, 1. 4 million. W, that was a decline, a loss of 328,000 jobs a year. And here are bush senior and reagan. W was book ended by recession. To bring in another chart related to this mornings report, another measure, the u3 and u6. U3. 4. 2 , thed is down to lowest level since the financial crisis. We are getting to levels we saw in the early 2000s. Possibly in indication of diminishing slack. At theuickly look numbers for that jobs report. 98,000 on the headline, a miss. Unemployment rate, 4. 5 . 2. 7 on average hourly earnings, online for expectations. I have the Deutsche Bank chief economist here. Seems like a pretty good report other than the fact that the headline was not good. I see the Unemployment Rate falling, that is good news. U6 isread between u3 and good. Above6, it was slightly eight. Report, buta strong it is important that his comments after the report today, he still decided to put a more hawkish tone to what he said. This is telling you he did not seem overly worried. Scarlet but at the same time it vindicates the Federal Reserve with of their last dovish hike in which they did not move up the projected rate increases. We follow closely the atlanta fed. Now in the york fed gp is range of 2. 5 to three. There is some discrepancy, but it tells a story the fed will look through. Whether it was a snowstorm in just aerence week or residual seasonality from the crisis. They havenues to be, felt it was good enough to raise rates. Why is at the u. S. Economy tends to stumble in the First Quarter . Have we figure that out yet . Remember the recession in 2009 hit in the First Quarter, it hit so deep there was an adjustment following that. It is a very peculiar thing that he can hang over so long. The simple answer, the statistical methods saw an enormous snowstorm in the First Quarter and therefore it has been that way every single year for the following seven years. It is a peculiar explanation. Joe it is amazing, you go back and see how different events throughout history have had the sort of effect. The chart shows there are quite different numbers in terms was an adjustment because of bad weather. In the reference week we measure employment in a certain week every month. The question is, is that based on bad weather in march . Most people do not show up at work . Where they parttime or had some other reason we can measure . The bottom line, that distorts the headline number. The suspicion is that the 98,000 headline was indeed the reason. Slack, there a a lot of a shadow slack, a pool of labor that is reflected in the decline of Labor Force Participation rates . Prior to this month you could say we adding 200,000 jobs, wage growth is not that hot, labor force for dissipation is higher. This month is less clear. Ideado you think about the that there are way more workers on the sidelines . Caseen it still is the that if it were the situation we had so many people on the sidelines, why would the fed the accelerating fed hikes . That is telling us very clearly that may be there is. They still feel there is a need to raise rates and a chart is showing rate hikes. They think we have gotten to game time. There is no longer this enormous amount of slack in labor that could hold wages down. Scarlet stay with us, the Deutsche Bank internationalist. I want to bring you headlines, the Congress Secretary making reports to reporters from palm beach, florida. Saying the 100 day plan is a sea change. It was significant in the president s summit. Tillerson, the secretary of state, talked about north korea and said that their posture has to change and its future will be guided by future reactions. These other rolling headlines out of those comments. This is bloomberg. I am mark crumpton, it is time for first word news. Syrian president condemns the u. S. Missile strikes on the Syrian Military airbase, calling them an unjust and arrogant aggression. That is according to syrias state news agency who said assad warns it only increases their need to crush militant groups in syria. Swedish police have arrested a person that may have a connection to todays attack in stockholm. At least for being people killed, 15 injured, when someone drove a hijacked beer truck into a building. The Prime Minister is calling it an act of terror. President trump says the relationship between washington and beijing it gained traction after he dined with chinas xi jinping the last night. The first facetoface meeting between the two coup leaders. He told reporters at his maralago report in florida we have made tremendous progress. My representatives have been meeting oneonone with his counterparts in china. Made. Progress has been we will be making additional progress. The relationship developed between president xi and myself is outstanding. Leaders will spend parts of today at maralago where north korea and trader on the agenda. President xi leaves later today. 24 hours a day powered by more than 2600 janet journalists and analysts in over 120 countries. Treasury secretary Steve Mnuchin is briefing reporters on the summit between president s trump and xi. More is agreement of that is needed to get balanced trade between the two countries. He adds the china currency report is due in the very near future. The president in the past said he would label china a currency manipulator. Since taking office he has nondone that. Joe we have been covering President Trumps decision to launch a missile strike in syria, there are tensions with russia. David perdue with from georgia joining us from capitol hill. He is a member of the Senate Armed Services committee, we appreciate you coming out. How do you feel about the white houses level of communication about these attacks . Was the congress fully briefed in a timely manner . Absolutely, i cannot applaud the president more. This was a measured, proportional response and it was decisive. It is exactly what people around the world have been calling for the past few years. The heads of state i have met with over the past two years have all been requesting this. They have been telling us that what we need is a president that will lead. This shows the world that chemical weapons will not be permitted. We have people in the region and this is a serious issue that this president acted decisively on last night. Scarlet the decision to launch a strike happened shortly after changes to the National Security changes. Is there a link to the strikes, more interventionist policy, and the personnel of the committee . David no, i really do not. That is a washington look at it. This president acted decisively about something he spoke out earlier in the week about. Except the use of weapons of mass destruction and chemical weapons in syria. It is time for Bashar Alassad to go. We have to defeat isis and get syria rebuilt. This refugee problem has gone beyond crisis around the world. Joe you say it is time for assad to go. Is this one strike on one airport enough . David no, but we need a concerted effort on the on the part of many countries to get rid of Bashar Alassad, solve the syrian civil war, and get syria started on the long journey of being rebuilt. We have solve this and get these people back home. We have 65 million refugees around the world. Syria is a microcosm of many problems around the world we have to solve militarily and diplomatically. Scarlet a lot is going on on capitol hill in putting the confirmation of neil gorsuch as a Supreme Court justice. Happenedlear is what to be done to get it through. What is the lasting damage of taking that option . How does it weaken the institution . David i do not think it weakens the institution. But it is unfortunate that after 230 years, where no partisan filibuster had been used to block a nominee to the Supreme Court, that we had to use the rules this week to not let that happen and to get judge gorsuch confirmed. Mane cannot confirm this with his credentials in the mainstream, i am not sure who we could confirm in a bipartisan way. I do not think it has a Lasting Impact at all. Back to theto get business of finding Bipartisan Solutions to health care, taxes, getting the economy going, which are the priorities of this president. Joe you mentioned taxes. There are many ideas about what tax reform should look like. Partynfident are you your can congeal around a specific idea more effectively than it has the Health Care Debate . David i am hopeful. All parties involved are looking at this to get the best solution. I am troubled by the fact that a lot of the solutions being promulgated are based on the washington approach to this problem. As an outsider, i do not see that is the proper approach. Getting your Corporate Tax rate competitive with the world, eliminating repatriation act and arelifying tax code absolutely progrowth and will help us create a level Playing Field so we can compete again with the rest of the world. Joe senator purdue, republican from georgia, thank you. Steve mnuchin saying sanctions are an important tool on syria and north korea, speaking to reporters from florida with President Trump, during their summit with xi jinping of china. He says the u. S. Will use sanctions to the maximum affect. Rex tillerson also making comments to reporters, saying the president was invited to china and that visit is scheduled for 2017. The president informed xi jinping on the air strikes in syria near the end of dinner and he understood the u. S. Response when people were killing children. We will keep you posted. Joe whatd you miss . Feds planhink the to shrink its Balance Sheet might cause Interest Rates to rise but it is not clear that is how the market sees it. What is driving counterintuitive movement . Lets bring in Matthew Boesler economist. Tsche bank a very interesting week. We learned something extremely important with regards to the Balance Sheet and how the market sees the unwind of it. What did we learn . What we havene, seen over the last week or so, people have been really worried that when the fed reduces its Balance Sheet that will lead to higher longterm Interest Rates because they are getting rid of Bond Holdings in the market has to absorb those. Given theve seen is, new york feds comments about how they might take a little pause with rate hikes when they start this Balance Sheet normalization process, that has been has had a bigger effect on longterm Interest Rates than fears about unwinding the Balance Sheet itself. Longterm Interest Rates have gone down because they adopted a slower, shallower rate hike while they start unwinding the Balance Sheet. Scarlet we have a chart that highlights that. You can see that is following deadlys comments. The second yellow circle is when we got the fed. It has reversed sharply because dudley said this afternoon that last week when he said they might take a pause, people may have misconstrued him and interpreted a bigger pause then he meant. Was the Balance Sheet a signaling mechanism, 4 trillion . Matt it is complicated, they now have short break short rates. Is, they will tell you Monetary Policy only goes through the long range. But how do you choose between the hike short range or longrange . He is trying to say come out once we see them slow a bit maybe we should have them go up . The pause is shorter than we thought. Revealed what the staircases looking like. It is highly unusual compared to other hiking cycles. Joe another chart you brought us has to do with declining risk premiums. I have to maximize it on my desktop. What are we looking at . Matt this is the telling side of the story, going on in the longer end of the yield curve. When Interest Rates have risen because the fed has been hawkish in various times over the last month, this spread between fiveyear and 10 year yield has collapsed. The idea is that they are guiding a higher, maybe faster pace of rate hikes. That makes the spread of the long end of the curve come in because investors decide they have to hold lower inflation risk premium, they demanded because the fed is going to be tighter. Paradoxically, we have seen when longterm Interest Rates go up the curve reflectance. It is just what were seeing today. Does this make future fed communication that much harder to decipher . Now they have this second instrument to deal with it and it is difficult because how do you deal with this . We were very surprised that metals were mentioned this week. N if it is a moderate modest amount, they showed us that 100 billion dollars in the Balance Sheet corresponds to five basis points higher. Therefore, 300 billion will give you five basis points. But we did not see that. Rates fell. It tells you how long rates are. Conclusionay be the from him today is not that important. Thank you both very much. Scarlet we have breaking news, Rex Tillerson saying the goal in a serious strikes taken yesterday was to make the base inoperable. He says he is disappointed on the response from the russians. U. S. Ambassador to the u. N. , nikki haley, says the u. S. Took a very measured step last night by launching missile strikes in syria, and is prepared to do more. She made her comments today during an emergency meeting of the un security council. Our military destroyed the airfield from which this weeks chemical strike took place. We were fully testified in doing so. Ambassador haley said the u. S. Would not stand by as chemical weapons are used and that Bashar Alassad must never used chemical weapons again. The u. S. Senate voted to confirm neil gorsuch to the Supreme Court. The vote was 5445. Yesterday republicans lowered the amount needed to a simple majority from 60 votes after democrats filibustered and blocked gorsuchs confirmation. Belgian authorities have dropped terror charges against a tunisian man who drove his car at high speed around a busy shopping area in antwerp last month. The 39yearold man was criminally charged with what is called attempted murder in a terror context because of reports people had to jump out of the way of his speeding car. No one was hurt in that incident. Prosecutors said today there was not enough evidence of terrorism. Global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. Scarlet we have breaking news, i want to recap the headlines made by Steve Mnuchin. He says the china currency report is due in the near future. That is in regards to President Trumps assertion they had undervalued currency and trade unfairly. He also said the administration would announce more sanctions on syria and that the u. S. Would look you sanctions to the maximum affect. Rex tillerson said a President Trump informed xi jinping on the missile strike near the end of dinner and that the goal was to make the base inoperable and that he is disappointed on the response from the russians. A 100 ross says there was day plan on trade discussions during the president s summits, that was the most significant. That is a big sea change in the pace of discussions. Joe lets head to palm beach, florida with our correspondent kevins a really. Thank you for coming back on. What you make of the latest comments from Rex Tillerson . This clearly, administration trying to show some developments out of this twoday summit with President Trump and president xi jinping, who i am told just left maralago and is headed back to china. Clearly, that developments of syria casting a shadow over this summit. We heard from Rex Tillerson the President Trump learned of the dinner learned of the syrian missile attack during dinner with president xi. It talk a little bit about what Steve Mnuchin said with regards fishing regards to sanctions. It appears they are on the agenda. From we just heard secretary of treasury Steve Mnuchin saying the u. S. Will be imposing new sanctions on syria. He did not get into the specifics, but this would be a another tool coming out of the Treasury Department that he intendantble to work with secretary of state Rex Tillerson in order to get their sanctions across. Scarlet final question, wilbur ross talked about a 100 day plan on trade discussions, can you give us more detail on that . Kevin this was out there the President Trump called on his administration to look into the trade deficits of all countries. This will be part of that, touted as a development from the twoday summit. They are looking for common ground. I am told by officials this was just step one in what they hope will be a series of meetings. For further analysis on letsesident xi summit, bring in make nick. This was a getting to know you meeting between the president s and xi jinping has invited President Trump to china. Them tods to happen for form an alliance . The Trump Administration will press china on trade in north korea. This meeting was breaking the ice, starting the conversation. What the administration will be looking for is for china to show tangible progress on both of those fronts, north korea and trade, over the next few months. We will talk about trump visiting china toward the end of the year to solidify that. Joe what would tangible progress on in the next few months even look like . It will be tough to benchmark clear progress. But the Trump Administration wants to see a reduction in the trade deficit with china. How is that achieved . You look at Chinese Industrial penalizing imports of chinese steel. Fallu see those numbers and imports to china increase, there will be success. You bring up glad the trade balance. Others have said it is not the best metric to use. It is because the u. S. Dollar is the worlds reserve currency and china plays a role in the Global Supply change chain. This chart shows the current account surplus, a percent of gdp. This has come way down from the crisis days. Is the u. S. Shortchanging itself by focusing on a trade metric that perhaps does not represent the full picture . Or not theer economics of the argument are correct, it is clearly the case that this is the benchmark the Trump Administration will be using. Trump, and ther eyes of those that have supported this pace about needing to reorient the trade relationship the u. S. Has with china and the rest of the world, that is the number they will continue to look at. We can have a legitimate discussion about what is the economic benchmark, but the political reality we are focused on and what will matter for companies and investors that are looking at the story, it will be about the deficit. Lets talk about north korea, what would tangible progress look like, and how do the strikes on syria influence chinas thinking . The mosts is one of interesting things, a big distraction during the summit. When the Chinese Government looks at the decision the Trump Administration made last night theyria, it does legitimate idea the u. S. Will be willing to be more assertive, potentially considering direct military action to dismantle the north Korean Nuclear program. Whether or not that is the case i am skeptical. The first, second, or third choice of the Trump Administration. But when we talk about compliance and what can china do, they want to see the Business Activity slow down. That is the tangible enforcement side. Scarlet does china tread more carefully in the South China Sea . Nick i do not think so. The bigger story, china has a big transition, they want to keep things stable. But commitments in the South China Sea are clear and it will continue to push. Much. Hank you very coming up, we will get a timeline of nafta negotiations between mexico and the u. S. , with the economy minister. Joe mexico anticipates changes for nafta to be swift and not as harsh as President Trump pledged on the campaign trail. We sat down with the mexico economy minister about the process. Media coverage was not recognized by the administration. They said it does not recognize the fact about changing nafta. Nothingeassure you that we have been doing it nafta will be the mission for mexico. Space for aa winwin. Reflect theelements general terms in which an agreement should be upgraded or changed. These typesthe time of communication have a very high level of analysis. As always, the devil is in the details. This can be very difficult to negotiate when you go for specifics. But more fundamentally, can nafta, thehat existing treaty wont be changed in a very substantial way . What is the direct proposal suggest . Ildefonso when you make an agreement, you introduce many things that did not exist 20 years ago. Such as what . The newo ecommerce, approach in energy. 20 years ago, north america was not efficient with energy. And Shell Shell Oil gas, we have Energy Reform in mexico. We have a different use of energy today. Medicines that were not available 20 years ago, so those are very important changes. Challenging or damaging the mexican economy. Nothing ine you, nafta will be against the interest of mexico. I would do the same thing, but lets be specific about what will be part of the agreement. The energy industry, oil in particular, will be part of the new treaty. Software, ecommerce, and technology in general will be part of the new treaty. Ildefonso yes, telecom is also relevant. Going to more detail, if you do not mind. Ildefonso i can share with you when you hearent, about the interviews of my colleagues in washington and we agree with some of those positions, we have to strengthened strengthen the values and bring production to this part of the world. The other element that is very important for the u. S. Is rebalancing trade. I am very glad for President Trump, he has this analysis of trade deficits around the world. As an economist i do not agree to the approach. Youou want to look at them, should not look at just one country, but the whole thing. Today the world is involved in Global Values change. You have to have a surplus with other countries. Realize that mexico and the u. S. Are in the same side. Mexicoend of the day, will be willing to buy more from the u. S. We are already buying a lot. Havedditional imports slowed down. They have to be able to supply to mexico at a competitive cost. What about the buy america clause about the Trump Administration has a sincere level of inserting into the treaty . Ildefonso if they want to withdraw the ability to sell goods the public sectors in the u. S. , the same restrictions will apply on the mexican side. If they want u. S. Companies that have less access to sell willcts to mexico, they have the same problem on the other side. What is the timeline for these negotiations . The noticest month would be sent to congress within weeks but nothing has happened. Ildefonso you are right, mexico is in consultations. We hope to and these problems by may. The u. S. Has to figure out the mechanisms. , if will be able to notify that is the case, maybe some negotiations at the end of july. How long will those take . Ildefonso it will be in the best interest to make these efficient because there is an election in u. S. In november and in mexico in the middle of summer, so we need to make sure whatever we negotiate is ready before we change congress and the presidency. How many months . Ildefonso six months, and then they have to prove it. The peso is much stronger than it was a few weeks ago. Enterbetter for mexico to these negotiations with a strong peso or weak peso . Ildefonso the relative strength of the peso in negotiations is not an element that would change my position. I will not make longterm decisions for my country, pressured by the shortterm elements of the exchange rate. That would not be wise. It would not be in the best interest of my country. Joe that was mexican economy minister Ildefonso Guajardo villarreal. Scarlet they unbound person a Fashion Designer is our next guest. Scarlet whatd you miss . Fashion designer diane von furstenberg is leading a different narrative these days, empowering other women. She had awards for trailblazing women. Changes that have outpaced the corporate worlds ability to adapt. This organization i am involved with, i have met these incredible women who may not be known at all, but who have transformed their community and have done so much work. They needede women, the strength to survive and the courage. After that, not only did they survive, but they had the leadership to inspire. That is the Mission Statement of what these awards are about. The reason you do these awards is to give these women money for their foundation, and to give them exposure. A total of five awards were given this year. What links this years honorees . What is important is that each one is bringing an issue that is so important. We had of the girl from cuba, she is a blogger in cuba and it is all about freedom of speech. That is incredibly important. It is all about taking care of children, who come because of war, war children. That is an incredibly important thing right now. We startedimportant, something to teach children their civic rights, which is incredibly important, because they know they can make a difference. There was a model that all the girls aspire to, she promotes coding for girls. And the queen of the queens, idol ofdall, who is an mine, someone i respect so much. Through her relationships with broughtand chimpanzees, the importance of the human being and how we are all connected and how each one of us can make a difference and leave an impact. Yearsll about this honorees, what we can do today and how we can make this a better world. What specific obstacles do you think women starting out face . What did you think would have been solved by now . There is still talk about no equal pay for work. And on it unconcealed inconceivable and unacceptable. It is funny, i did not know when i started what i wanted to do but i knew the kind of woman i wanted to be and i became that woman through a little dress and then i became confident. Because it was a dress, i was selling confidence. My relationship and my dialogue with women has allowed me to do this. The more i meet women, the more i realize how insecure we all are. And that is the first step i think that every woman has to do. First you have to realize your strength. And if you do that, everything will be easier. This is my gift for you, something i read a few months ago. When you are down in the morning and you are discouraged, you should remember that, if you doubt your power, you give power to your doubts. Well said. What are you insecure about . What do you seek advice about, and from home whom . It is not that i am insecure, but sometimes i feel that i am a little girl. What . In what context . It is so irrelevant and not important, but it is important that i say that because everybody says, great, i am happy i am not the only one. The woman across the room always looks so poised and like she is so poised so put together. Because i am the woman across your room. I think the most important thing you you start, like you, have a voice coming your successful, people listen to you. If you have a voice it is important to use your voice for those that do not have one. Scarlet that was my conversation with diane von furstenberg. Joe what you need to know to gear up for next week. Scarlet u. S. Talks ended little changed. Secretary of state Rex Tillerson attending a g7 meeting in italy. Then he will be meeting his russian counterpart in moscow. Speaking janet yellen monday. And the Neel Kashkari speaks tuesday. Scarlet the new York International auto show kicks off wednesday. Q1 earnings. Up have a great weekend, this is bloomberg. Mark i am mark crumpton. You are watching bloomberg technology. Lets start with a check of your first word news. U. S. Military officials are contradicting russias claims is suspended the conflicts and talk inprotest conflict talks protest of the strikes in syria. The u. S. And russia clashed today on whether to maintain the hotline aimed at preventing midair collisions of warplanes in syria. Officials also said they are looking into whether russia participated in the chemical weapons attack. The u. S. Ambassador to the United Nations says the u. S. Took a very measured step last night in syria and is prepared to do more. Our military destroyed the airfield from witch this weeks chemical strikes took place. We will fully justified in doing so. Mark the senate has voted to confirm neil gorsuch to the Supreme Court. 53 yesterday,440 republicans lowered the number of votes needed to advance the Supreme Court nominee to a simple majority from 60 votes after democrats filibustered and blocking judge gorsuch