Real threat to peace. Glass container filled with thousands of weapon used by farc was removed today from a rebel camp. Colombian president Juan Manuel Santos personally oversaw the closing as a left of the camp. It is the final stage of the disarmament that began in july and was overseen by the united nations. It was one of the provisions of the Peace Agreement signed with the colombian government. The richest person in the world has made his largest donation since the year 2000. Bill gates donated microsoft billion ed at 4. 6 about 5 of his fortune. No word on who received the gift. Gates has made most of the donations to the bill and Melinda Gates foundation, which he and his wife use for their philanthropic efforts. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Abigail live from World Records in york, im abigail doolittle. Scarlet im scarlet fu. Joe im joe weisenthal. Julia is off today. Abigail vix is down for a second day. Joe the question is, whatd you miss . Scarlet President Trump will make comments on the executive order on infrastructure. Theamazon effect ecommerce times at the center of our coverage as brickandmortar stores get to get crushed. Retail sales still showed solid spending. And the reach can be felt in debt markets from where it is looking to sell 16 billion of unsecured bonds to finance the acquisition of whole foods. Abigail whatd you miss . The u. S. Dollar is rallying and stocks are missed as the threat of war with north korea has diminished. Days stumbling for a second and made a return to calm in the stock market. Ms. Ann sonders is the chief investment strategist for charles schwab, she is with us from stamford, connecticut. Thanks so much for taking the time to join us. What do you make of all of this volatility, the recent volatility . The percent move down last week followed by the move this week and then the calm . Liz i think it was a kneejerk reaction to the tensions rising in north korea. What you tend to see when you get these spikes, unless there was a protracted reason for the volatility to stay high, it tends to retreat very quickly coming upgs of tensions specific to that. Fundamentals won that over from geopolitics. Joe there is nothing that you buythat suggest that the thedip strategy that is worked for years is intact . Liz i do think it is intact, although i have more cautious in the near term. There are technical reasons for that, but also come other than the geopolitical uncertainty, you have the debt ceiling fight to come, the potential, although not a likelihood, of the government shutdown. Usb fed you have the feds pairing of its balance sheet. 7u have the years ending in phenomenon. Ofo think this is a period the volatility to continues in an ongoing secular bull market. Joe im glad you brought up the year ending in 7 thing, because im totally into this story. We were looking at all the things 2007, the quant crisis, beginning of subprime. 1997, Asian Financial crisis. 1987, black monday. You could just go on. I was looking for stuff in the year 07 earlier but i did not find anything. Is this just random numbers, or do you think there is something behind it . Liz well, if you go and look at the dow, which has a longer history than the s p 500 come and go back to the 1900s, 1907 being the first year, it doesnt fail. Only 1927 did not see at least 10 correction. That one was 9 . If you want to round up, you pretty much have a correction as defined by 10 in every year that ends in a seven. The maximum drawdown did not always occur in this time period in which we sit now. In any of the years even if the ,aximum drawdown was earlier there is choppiness if not actual weakness in the august to november period of time. Fromd just the mystical the Business Cycle to the economic cycle, but it is what it is come is something to be mindful of and not a prediction of what will happen this year. Scarlet something to be mindful of. Something else we have paid attention to is how prominent investors have given warning to investors saying that when it is money offrisk or take the table, to go into cautious investments now. Sentiment is not quite as bullish as it could be. Do you see that as a bullish indicator . Liz i think that has been one of the more important supports for the entire bull market. Of investorsness probably to really embrace the bull market and see sentiment get to the kind of froth you might expect to see, given the length and strength of this bull market, is testament to the severity of not only the financial crisis in 2008, but also the tech bust that occurred within a 10year period. I think the muscle memory of back to back has kept sentiment very much intact. To go back to the wellworn phrase, stocks like to climb a wall of worry, maybe you have had a couple of bricks knocked out by virtue of the latest new hires in the market and the measures of complacency picking up. You dont have anywhere near the euphoria that we have seen in the past. You might expect to see a given where we are in the bull market. Abigail how do expectations play into this . We see that this is 21 times, well above the average of 6. 5 times. We could see a bit of a correction. Our stocks at risk right here . Not necessarily. Bull markets dont tend to end at or slightly above medium valuations. My data has the forward multiple more in the high teens. That is above longterm medium on a trailing basis. As long as we have doubledigit Earnings Growth we have seen an inflation stays in check, and a lot of people forget that you need to look at evaluation with a lens of inflation. As long as we all as workers, the value of our earnings is higher when inflation is lower, you can apply the same thing in terms of evaluation of stocks. Earnings are valuable when inflation is low. You are looking at a more reasonable valuation. If you add the Interest Rate filter on top of it, some thing as simple as the 10year treasury yield on pe, whether it is forward trailing or something that the schiller tip, you see more reasonable violation picture. Valuation picture. Background conditions are supportive of the valuations where they are right now. Joe speaking of earnings, one thing that has cut peoples attention is that copies of not being rewarded as much for their beats. They are not seeing much of a pop positive reaction. Ins this imply richness Investor Expectations that are a bit ahead of themselves . Liz ann part of the reason come as i mentioned when we started the interview, that we could be in for choppiness, leaving aside the year ending in 7 phenomenon, is investors are more deserving now. We will continue to experience some of the rotational pullbacks, where it does not take the overall market down to a significant degree, but you see some weakness specific to certain sectors, as money rotates out and moves into other sectors. You have seen correlations come way down. The Playing Field has not been leveled for quite some time. But i also think it helps to define why it is not everybody charging ahead, simply because in the aggregate earnings are strong. There is more discernment by the Market Players right now, and that is not necessarily a bad thing. Abigail great stuff. Take you for joining us. That was Liz Ann Sonders of charles schwab. Coming up, highlights of our conversation with ed morris. Scarlet and we are going to show you live pictures of the trump tower lobby in a new york city. The president in manhattan today. He is expected to deliver remarks after signing an executive order that will reform the infrastructure permitting process. We will bring you the remarks live in moments. This is bloomberg. Scarlet you are looking at live pictures of the trump tower lobby. The president in manhattan. He is acted to deliver she is expected to deliver remarks shortly about reforming the infrastructure permitting process. Miss . L whatd you earlier today, alix steel and david westin at bloomberg spoke to ed morse on bloomberg daybreak americas. They asked about the outlook for shell. Markets arend, the going to win and it will be shell. The opec positions is not sustainable over a long time. They are losing revenue by what they offended yes, they might have a little more by what they have done. Yes, they might have a little more revenue than they otherwise might have. They can survive at a lower price. Lix i was talking to bankers yesterday commended and they said that the huge shift of money is over. It will go in to other areas. We saw an extra of what is in the wells change in the last earnings season. Permian we expected six months ago still what we are going to expect . Is a lot more years in oil than people had thought. The gor number, which was armiesg, and a couple of in the permian, more than people have thought about. It will be put into pipelines to export to mexico and other parts of the u. S. It is a temporary problem. The other was a hiccup, in terms of utilization of the service sector. We think the permian will grow at a hefty rate this year and probably at the same rate next year. Alix the higher prices go, the more hedging comes into the market. Take a look at the bloomberg care. Prices the white line, its just me, the oil prices the yellow line come at the net commercial position is the light line. You see the positions coming in, which means you are shorting more and you are hedging. How much is going on right now . Ed the better curve to look at is the vti against sprint. Alix he is correcting my chart. Ed i will tell you why that is fleeting. David the guest is always right. Parallel,uld be in and then there is a breakaway in the last few weeks, where wti widens. It is pretty much flat, 50 a barrel, through the middle 2019. That is a sign that produces have been hedging. The best producers in the permian have positive cash flow. Shale is the same, but the permian is quite different. David the story in the last two years is what technology has done with shale. Where are we on that curve . Do we expect further technological innovation that will bring the price down farther . At theres a battle going on the moment between the technological change, creating greater these, and the cost of services. It went down because there was a superabundance of Services Drilling rigs, labor, sands, all of the things that going to fracking. Now were moving towards a higher level of utilization. The inflation is there. Thexpect from the lows on site is rise. It is not on the whole drilling picture. It is on the fracking part. Ofgail that was ed morse citigroup earlier on bloomberg. Scarlet whatd you miss . President trump will be delivering remarks on the executive order to streamline determining and review processes. This comes as 4 Business Leaders quit the president S Manufacturing council due to the fallout over his handling of the violence in charlottesville, virginia. Lets bring in Kevin Cirilli from our washington correspondent, joining us outside trump tower. Tell us a little bit more about this executive order that the president s signing. It has to do with the Infrastructure Spending plan that he told us about overall, doesnt it . Kevin yes, the president will be joined by treasury secretary Steven Mnuchin as well as transportation secretary elaine chao in trump tower. We are waiting for President Trump to sign this executive action. Essentially what you would do is streamline the process for Infrastructure Projects in order to two get federal approval. Say in the administration argues that these procedures take about five to six years in order to vet. What the president would do with this action is streamlined the process to get the projects of the ground more quickly. This has nothing to do with Congress Come it is not the economic stimulus plan. The administration has proposed 1 trillion plan. Either way, the president trying to turn the page from the controversies that have dogged the administration with charlottesville and the ceos leaving his counsel by signing these executive actions this afternoon. You mentioned that this executive action is not the same as infrastructure stimulus. That was a big thing people were excited about after the election, and several times we heard trump talk about rebuilding American Cities with american steel. What is happening with all of that . Well, look, quite frankly, this is an administration hungry for any type of legislative win. You look at several days of the controversy with the following in charlottesville and that will embolden republicans in their quest to get some type of legislative win. Care,he fallout of health the Congressional Budget Office score that just have to the terminal in the last hour republicans were unable to get a Major Health Care policy win. They are trying to get something done on tax reform, where lamarcus returned from recess in september. Lawmakers returning from recess in september. Only 4 calendar days left. It looks to be a political firestorm, so to speak. To answer your question directly, on the issue of infrastructure, there is optimism that there might be some type of bipartisan plan. That has since receded very fast as we enter into monte to seven of President Trumps first term of office. Abigail around the controversy with charlottesville and the ceos stepping down from the advisory council, there is the sense that they are doing the right thing, but what is the business decision behind the moves . Kevin well, look, i think that when you look at the ceos who have left recently, led by merck ceo kenneth frazier, as well armourn plank from under , i picked elon musk of tesla led the way on this several months ago, now you have a handful of ceos who are taking a look at the business bottom line, as well as shareholders, and americans throughout the country can look at the tepid response and the seventh announcing of hate groups, whitezis and supremacists, and were baffled by the tone deaf response coming from President Trumps for spots on this. All day ive spoken to republican Political Consultants in washington who are growing frustrated at the lack of ability to craft any type of messaging strategy to recover from what they see as a grossly missed opportunity to unify the. Ountry i was speaking with one republican strategist earlier today who said that in these times of charlottesville and other incidents like this, americans are looking for a president , a leader, but also a pastor of sorts to unify the country. Hat was lacking and then you. And then you look at the president s twitter account, and his decision after scarlet Kevin Cirilli, very well said. Xiosave a headline from aio bets is larry fink of blackrock will remain on the economic council, or least axios is reporting that he will remain. We had comments from johnson and johnsons ceo, who said he will remain on the council as well. Alex gorsky says he does respect the decision of others, but he will remain. A massivenext, engineering and Construction Firm is falling today on a moodys downgraded. 10 President Trumps infrastructure plans boost its fortunes . From new york, this is bloomberg. Scarlet we are keeping a night on what is going on at the trump tower lobby in new york city. The president will be delivering remarks at any moment could he signed a new executive order that will reform the infrastructure permitting process. We expect a q a session with gary cohn. We will bring you those remarks as soon as they begin. Abigail Industrial Engineering and Services Company fluor is down 1. 5 today on heavy volume after a ratings downgrade by moodys, deepening its 2017 the kind to 26 . Officially a bear market. Joining us with Maurice Oliver renick. What is happening here . Oliver this comes after what seems like moodys is determining to be did eurasian and fundamentals, looking at Competitive Pressures as well as best deterioration in feminist, looking at Competitive Pressures. Not completely negative, but the highest graded debt to get downgraded. They are Setting Energy as well as Industrial Infrastructure units that have cleared out the backlog. There are delays involved in what they want to get done. Since. The downtrend joe infrastructure can meet a lot of different things. A lot of Infrastructure Companies are energy companies. Is this the kind of company that would theoretically love to see one truly dollars of Government Spending . This is a recent debate the stock it is one of the top 10 gainers the election. It is after getting pretty much obliterated, down double digits. It is one of the top 10 industrial camesa the more clarity you get in any respect on infrastructure, it could put a bit of a floor joe floor underfloor. Oliver didnt even mean to do it. Scarlet when you talk about the rating downgrade, you have to look at the cash flow and what can you tell us about what fluor has been doing that . Oliver lets look at the bloomberg terminal. 5 s red number right here, it is in the fifth percentile in terms of its price to 12month cash flow. Pretty expensive based on the cash flow. The other thing is the 5 margin down here. 5 of the percentile. Margins are pretty tight here. Ultimately something has got to give. To leaveenter a deal the partnership on a light speed rail in texas. Positive development early on. One of the tabs of projects that this is the Company Behind abigail as we were mentioning, the stock is down 26 this year. Perhaps because infrastructure to the stimulus plans have not come out of the administration. What does this company have to do to turn things around, if any infrastructure stimulus does not come . Oliver good question. There is more pain to Companies Companies that were banking on that move. The Industrial Companies and financial committees are waiting to hear clarity from the white house on what they have to do. It is about caring out the ones that are getting delayed for fluor. Abigail great stuff, all of her. Deep dive on fluor. Lets get you to the Bloomberg Business flash. Pandora media shares are present today as investors are placing bets that new ceo roger lynch will do better. He recently ran sling television, the Biggest Online tv package in the market. Lets go now to trump tower, where the president is getting ready to speak. President trump great to be back in new york with all of our friends. Great friends outside the building, i must tell you. I want to thank all of our distinguished guests who are with us today, including members of our cabinet. Treasury secretary Steven Mnuchin, omb director mick mulvaney, and of course from our transportation thank you all for doing a really onredible and creative job what we will be discussing today, which is infrastructure. Great set ofhad a briefings upstairs on our infrastructure agenda. My administration is working every day to deliver the worldclass infrastructure that our people deserve and that our country deserves. That is why i just signed a new executive order to dramatically reform the nations badly broken infrastructure permitting process. Blocks away is the empire state building. It took 11 months to build the empire state building. But today, it could take as long as a decade and much more than that. It takes 20 and 25 years to get approval to Start Construction of a fairly routine highway. Highway builders must get up to 16 different approvals, including nine different federal agents used governed by 29 different statutes. When agency can store a project for many years and even decades. Not only does this cost our economy billions of dollars, but it also denies our citizens the safe and modern infrastructure they deserve. As overregulated process is a massive selfinflicted wind wound on our country. Denying our people much needed investments in their community and i want to show you this. I think im going to show it to the media, will thrill and fake media, by the way. Fake media, byd the way. Takes to getit something approved. A permitting process flowchart. It can go out to 20 years. This shows about 10. It can go to 20 years to get something approves. This is for a highway. I have seen a highway recently and a certain state, i wont mention the name. It took 17 years. I could have built it for 5 million without the permitting process. T costs hundreds of million dollars. Years and many, many pages of environmental effect studies. This is what we will bring it down to, less than two years. It will happen quickly. That is what i am signing today. It will be less than two years for a highway. It is going to be quick, it is going to be a very streamlined process. By the way, if it doesnt mean m environmental safeguards, we wont approve it. It will be very simple. With anybody like it would anybody like it from the media . You can have it. This also requires agencies to requiring oneby lead agency for each major infrastructure project. It also holds agencies accountable if they fail the stream to streamline the review process. Each agency is accountable. We will get infrastructure built inexpensively relatively speaking, in the permitting process will go quickly. No longer will be tolerate longer will we tolerate the loss of jobs. I built all of the buildings i built and men have been and many other places. I will tell you the consultants are rich people. They go around making it difficult. Lobbyobby congress, they state and city governments to make it difficult to you have to hire consultants and you have to take years and pay them a fortune. Process. Reamlining the no longer will we allow the infrastructure of our magnificent country to crumble decay. Law protecting the environment, we will build gleaming new roads, bridges, railways, water waterways, and highways. We will build this with american iron, aluminum, and steel. Will makeake we millions of American Dreams come true. We used to have the greatest infrastructure anywhere in the world. Today we are like a third world country. We are literally like a third world country. Our infrastructure will again be the best. The pride in our communities, our nation, and all over the United States we will be proud again. I want to thank everybody for being here. God bless you. God bless the United States. Youou have any questions, can come appear please. Come on up. Questions, feel free to ask. Because they are not taking their job seriously as it pertains to this country. Manufacturing in this country. If you look at some of the people youre talking about, they are outside of the country and having a lot of their product made outside. Excuse me. Take a look at where their product is made. It is made outside of our country. We want products made in the country. I have to tell you, some of the folks that will leave, they are leaving out of embarrassment because they make their products outside and i have been lecturing them including the gentleman you are referring to that you have to bring it back to this country. You cannot do it necessarily in ireland and other places. You have to bring the work back to this country. That is what i want. I want manufacturing to be back into the United States so that American Workers can benefit. Long. t wait i didnt wait long. I wanted to make sure unlike most politicians that what i correct. Not make a quick statement. The statement i made on saturday was a find statements, but you dont make statements that direct unless you know the facts. It takes a little while to get the facts. You still dont know the facts. It is a very, very important veryss to me and it is a important statement. I dont want to go quickly and just make a statement for the of making a political statement. I want to know the facts. I brought it. I brought it. I brought it. Remember on therday, we condemn in broadest possible terms the display of bigotry and violence. It has no place in america and i went on from there. Excuse me, take it nice and easy. Heres the thing. When i make a statement i like to be correct. I want the facts. This just happens. A lot of the event didnt happen yet. Happened. I dont want to rush into a statement. Making the statement when i made it was excellent. In fact, the young woman who i hear is a fantastic young woman and it was on nbc, her mother through, id said guess twitter, social media, the nicest things. I appreciate that. I heard she was an incredible young woman. Her mother, on twitter, thanked me for what i said. Honestly, if the press were not the and it was honest, press would have said what i said was very nice. But unlike you and the media, before i make a statement, i like to know the facts. [inaudible] have a couple of infrastructure questions. Say it, what . Not at all. I think the country you take a look. I have created over one million jobs since i have become president. The countrys booming and the stock market is setting records. We have the highest employment numbers and the history of our country. We have the highest levels of enthusiasm, so the head of walmart was making a political statement. Why . Now i want to make sure when i make a statement the statement is correct. There was no way of making a correct statement that early. I had to see the facts, unlike a lot of reporters. Duke wasknow david there. I wanted to see the facts. The facts, as they started coming out, were very well stated. In fact, everyone said his statement was beautiful. If you would have made it sooner that would have been good. I couldnt have because i didnt know all the facts. Frankly, people still dont know all the facts. It was very important excuse me, it was very important to me to get the facts out and correctly. The first statement was made without knowing much other than what we were saying. The second statement was made knowledge. There are still things that people dont know. I want to make a statement with knowledge and i wanted to know the facts. Terrorism t is was this terrorism . Pres. Trump the driver of the cars with disgrace to himself, his family, and his country. You can call it terrorism or murder. You can call it whatever you want. I would call it as the fastest one to come up with a good verdict. That is what i call it. There is a question, is it murder or terrorism . Then you get into legal semantics. The driver of the car is a is arer and what he did horrible, horrible, inexcusable thing. Reporter can you tell us about how youre feeling about mr. Bannon . Pres. Trump i never spoke to mr. Bannon about it. Look, i like mr. Bannon. He is a friend of mine. But he came on very late. Senators,ough 17 governors, and i won all the primaries. He came on later than that. I like him. He is a good man. He is not a racist, i can tell you that. He is a good person. Unfair press in that regard. We will see you what happens with him, but he is a good person and i think the press treats him unfairly. To defend h. R. Mcmaster. [inaudible] pres. Trump you mean senator mccain who voted against having Good Health Care . He went to that same group to those who perpetrated the attacks in charlottesville. Pres. Trump i am sure senator mccain must know what he is telling wiki is talking about. When you say the old right alt right, define it to me. Excuse me. What about the alt left who came charging at the alt right . Do they have any guilt . What about the fact that they came charging with clubs in their hands . Today have any problem . I think they do. Horrible, horrible day. Wait a minute, i am not finished. I am not finished, fake news. That was a horrible day. I will tell you something. I watched those much more closely than you people watched it. You had a group on one side that was bad and you had a group on the other side that was also very violence violent. Nobody wants to say it but i will say right now. You had a group on the other side that came charging in without a permit and they were very violence. Violent. Reporter do you think what you left is the same as neonazis . Pres. Trump excusepres. Trump me. I have condemned neonazis and many different groups, but not all of those people were neonazis. Believe me. Not all of those people were White Supremacists. This people were also there because they wanted to protest the taking down of a statue. Take a look at some of the and yound you see would know if you are honest thoseers but many of people were there to protest taking down the statue of robert e. Lee. This week is robert e. Lee. I noticed Stonewall Jackson is coming down. It is the next week washington . At night before, they were there to protest the taking down of the statue. Infrastructure question, go ahead. Will the statue stay up . Pres. Trump that is up to a local town, community, or a federal government depending on the location. Do yoi think things have gotten better or the same look. Incumbent freight for a long time. You can ask president obama about that because he made beaches. Made speeches. The fact that i brought in soon millions of jobs, that will have a Tremendous Positive impact on Race Relations. We have companies coming back into our countries. We have to car companies, with foxconn, we have Many Companies pouring back into the country. I think this will have a Huge Positive impact on Race Relations. You know why . It is jobs. People want jobs. They want great jobs with good pay. When they have that, you watch how Race Relations will be. I will tell you, we are spending a lot on the intercities. We will fix the intercities and do far more than anyone has done with respect to the intercities. It is a priority for me and it is very important. The alt left you e alt left and White Supremacists on the same plane . Pres. Trump i am not putting them on any plane. There were people from the site and decide that came violently attacking the other group. You can say whatever you want, but that is what it is. I think there is blame on both sides. Thinkok at both sides, i there is blame on both sides, and i have no doubt about it and you dont have any doubt about it, either. It accurately, you would say. [inaudible] pres. Trump you have some very bad people in that group. But you also have people who were very fine people on both sides. You had people in that group excuse me, i thought the same pictures as you did. You have people in that group were there to protest the taking down of, to them, a very important statue and the renaming of a park. George washington was a slave owner. George washington a slave owner . So will George Washington now loses status . Are we going to take lose his status . Are we going to take down statues of George Washington . What about Thomas Jefferson . You like him . Ok, good. He was a major slaveowner. So now were going to take down his statue. It is fine. Were changing history and you had people i am not talking about neonazis and white nationalists because they should be condemned. You had many people in that group other than neonazis and white nationalists. The press has treated them absolutely unfairly. And the other group, also, you had some fine people, but you also had trouble makers and you see them come with the black outfits and with the helmets and with the baseball bats. You got a lot of bad people in the other group, too. Reporter do or say the press treated white nationalists unfairly . I dont understand. Pres. Trump if you look, there were people protesting very the taking down of the statue of robert e. Lee. There were bad ones. The following day, it looked like they had rough, bad people. Neonazis, white nationalists, whatever you want to call them. But a lot of people there to innocently protest and legally protest i dont know if you know, they had a permit. The other group didnt have a permit. I only tell you this. A story. Two sides to i thought was replaced with a horrible moment for our country. Horrible moments, but there are two sides. S anybody have a final we came very close to health care. Unfortunately, john mccain decided to vote against it for at the last minute. Well have to ask him about it. We will end up getting health care, but we will get the infrastructure. Infrastructure is something i think will have bipartisan support on. I actually think democrats will go along with the infrastructure. Reporter have you spoken to the family of the victim . Pres. Trump i will be reaching out. I was very i feel the mothers put out, the statement i thought was a beautiful statement. It is something i really appreciated. I thought it was terrific. Under the kind of stress she is under and the heartache she is under, i thought out that statement to me was really something. I wont forget. Thank you all very much. Thank you. I own a house in charlottesville. Does anyone know i own a house in charlottesville . Oh boy. In charlottesville, you will see. I mean, i know a lot about charlottesville. It is a great place that has been very badly hurt over the last couple of centuries. I own one of the largest wineries in the United States in charlottesville. Reporter when you think needs to be overcome needs to be done to overcome the racial divide . Pres. Trump i think jobs will help. I think if we continue to create i am creating jobs at, i think it will have a Tremendous Positive impact on Race Relations. People are going to be working and making a lot of money, much more money than they ever thought possible. I believe wages will start going up. They havent gone up for a long time. I believe wages because the economy is doing well with respect to employment and unemployment, i believe wages will start to go up. I think that will have a tremendously positive impact on Race Relations. Scarlet you have been listening to 30 minutes of President Trump holding a News Conference. He was air to talk about his executive order on andrastructure into one to streamline the process. Joe and abigail, he talked about mostly everything, most questions about charlotte l, lottesville,char virginia. Was a pretty extraordinary have our. He started off with his flowchart about the difficulty of getting a permit for infrastructure, and it seems like to be the message, and then to ban and coming late in the game. It came out to the alt left and alt right were both responsible for charlottesville. An unexpected 30 minutes. Gary cohen making his way to the podium. He will be answering questions, as well with regard to infrastructure about the economy. Speaking, we will bring you his remarks life. You . Il, what strikes abigail the most thing what struck me the most is you cannot flowchartup from the to the controversy with virginia. It was really pretty stunning. The transportation secretary is speaking right now in the lobby of trump tower. They will make remarks following the signing of the executive order. In the meantime, let us bring you kevins a really. He joins us from outside trump tower. Marty, that was quite the News Conference. Aside from the flowchart he unfolded in the beginning, which we have seen before, this is something he has done in the putting inside infrastructure, what struck you from the News Conference . Marty one highlight was his comment that steve bannon is not a racist. This is kind of an extruder recomment when no one has asked him about it. On it justomments why he wasnt able to condemn the White Supremacists because he didnt have the facts with a pretty extraordinary comments. Others,e down on the the protesters whom he cited for violence on the left. This whole notion of the alt left is a rather extraordinary one i have not heard him say before. It was quite a performance. Joe so much to break down as you did for well just there. Thing, the result of pressure on him after that saturday to come out and condemn racist and neonazis and the but which he did on monday, this suggested the way he talked during this press conference, that he did have some reservations about just criticizing them. Marty i agree. It sounded like that. Read condemning the white racists was really did not seem to come from a place for he was comfortable. On. Ead it and then moved today, he was in a place were he seems to be very comfortable, even suggesting that removing statues of robert e. Lee would removing of to the statues of George Washington. He was bringing in the full context of American History in backing his views with what happened in charlottesville. It is cry extraordinary. Scarlet also work comments on both groups from charlottesville. Let us listen. Pres. Trump you had other people in the groups other than neonazis and white nationalists. The press has treated him absolutely unfairly. And the other group you had some fine people. Scarlet you have some fine people from both groups. Joining us from outside trump tower. What struck me was that the president spent a lot of time saying he didnt take a long time to respond and to condemn the neonazis and White Supremacists. In fact, he wanted to wait to make sure what he said was correct. This is not a president who takes time to be patients. He tends to move pretty quickly. Kevin well, look. Trump, President Donald Trump doing what he has always done anytime his back is up against the wall. He came out swinging. He pushed through controversially in a way that really no other president in modern American History has ever done. He clearly is going to see our criticism from within his own with race his remarks relations in the United States. Had a president be as aggressive work brazen as he was. What began as an opportunity for the president to talk about his infrastructure plan and is with political rhetoric. He criticized everyone. Alt righto equate the with the alt left and try to attack the media again. This will not help him when he legislativeomplish agenda in the fall. He also took a swing at senator john mccain for health care. This is something that will be dissected for years to come. This was not this was night and day with a statement he gave virtually 24 hours ago in which he denounced these hate groups. All of a sudden, he continued on to attack the ceos who have left his counsel earlier today. Trumpas president donald trying to burst through with his political back up against the wall. Speaking of, we have some of the comments. Take a listen. Pres. Trump we want products made in the country. I have to tell you, some of these folks that will leave are leaving out of embarrassment because they make their products outside. Abilgail what do you make of the president talking right there exactly . Ceo ofkevin frazier, the first ceosof to leave. The president tweeted out that he scarlet let us listen to gary cohn. Can i talk . Then you talk. It is my turn now. I will talk. We are executing on that agenda. Ofre going down the path reform. We are implementing tax reform. Morning upstairs working on tax reform plans and rollouts. We will hit the ground running this month on tax reform. Is a huge problem in the United States. We are not competitive with the rest of the world. We know we have to get that done. We know the third leg of the stool is our infrastructure is not competitive with the rest of the world. We understand that. We are going to grow the economy, and when you grow the economy you create better jobs. You create better opportunities for american citizens to change. Heir quality of life by better cars, that is what the president ran on. Were here to help the president execute on that agenda. Were here to execute on that agenda. We are here to execute that agenda. Reporter how do you anticipate to break some of the partisan problems in congress to get that done . Gary health care is where it is. Is in the hands of the senate and congress right now. Where it ends up, no one knows. Director mulvaney is up to speed on that more than anyone. On taxes. Ng to work we have been working on them for the past couple of weeks. He will see a lot of information on taxes, but tax legislation starts in the house. They will ultimately draft tax legislation. A group of six has been working actively together. We have a great skeleton. We need the ways and Means Committee to put muscle and skin on the skeleton. It is our objective to do that between now and the end of the year. Infrastructure will follow on the heels of taxes. Reporter probably not this year . Ga we hope it is this year. Gary we hope it is this year. Joe we will go back to the press conference of President Trump and listen to something he said about steve bannon, whose job is believed to be in the hot seat. Pres. Trump he is a good man. He is not a racist. I can tell you that. He is a good person. He actually gets a very unfair press in that regard. He is a good person. Joe we have josh green who wrote a book about steve bannon. Your book may be one of the reasons his job is on thin ice. Pretty extraordinary comments from President Trump pointing out bannon came in late in the campaign. I believe he has said that exact line before. What you make of Steve Bannons job security . Josh he is on thin ice. The way understand is that trump is annoyed that journalists like myself give bannon some of the for trumps victory for saving him last august. We know trumps summary who doesnt like to share the spotlight. Been getting credit has been harmful abandoned getting trump. Is harmful to i am skeptical than it is about to get pushed out. The other thing i took away from this press conference is how the adamantly trump disagrees with the Mainstream Media idea that there is one set of factors for the charlottesville writes. What you heard from trump is him pushing back the very statement he gave yesterday that was in line with what steve bannon with would say. Out theseot single hardcore Trump Supporters and are a key part of our base. It doesnt make sense to me why trump would get rid of bannon if that is the way he feels. Clearly, that is the way trump feels. Joe what kind of backlash would right wing of the the Republican Party if bannon were to be ousted . Josh there will certainly be a backlash. The severity would depend on the circumstances and the time when he departs. And trump to leave says i am sending him out to begin preparation for my 2020 election campaign, i think things will be ok. If he is fired in dramatic action and trump is seen as cutting off his most important nationalist advisor, i think there could really be a revolt and you will see trump, who was already at staggeringly low numbers in the polls, fall into a real danger zone. Returning to an extraordinary press conference by President Trump, to the end he tried to bring it back toward policy away from the controversy around ceos leaving the advisory council. He also said jobs will have a big effect. He talks about lots of jobs soon. Created that jobs being created will have an effect on Race Relations. What you think of that . Whenever they probably big problems with this recovery has been slow wages, especially among lower income workers. He is right that the economy is gaining momentum. We had some reports today on retail sales and Homebuilder Sentiment that did the expectations. Job growth is healthy. Whether he is the reason for that are not is a subject of debate. That as incomes rise, it depends on where the income rise comes from. If it is up the lower end of the scale were minorities do have a greater number in those ranks, then it could in fact help. Really has an economic component, but a bigger component is mindset. Tone and moral force of the leaders of this country. Is certainly not the economy alone that could help. This News Conference was extensively about the executive order on infrastructure and streamlining the permitting process. There were lots of questions linked to his plan to boost theastructure spending but tax structure in the United States also. What did he say when it came to health care . Many in congress have said they are moving past that and are now looking at tax. President trump was not ready to say that he has given up on health care. Kevin we heard this from co thereh aren still optimistic. It. Will be a rough political september. They have 12 calendar days to raise the debt limit to avoid a partial government shutdown. You want to get to things Like Health Care and tax reform. Look, what you just saw from President Trump regarding charlottesville was very reminiscent of what we saw on the campaign trail in. September trail in september. Part of the dialogue was if he would announce would denounce and say president barack obama was born in the United States. This sparked a lot of controversy. Major media event. He flipped upside down and said that Hillary Clinton in the biinton campaign had started therth controversy started the birth controversy. What we saw inside was the same political playbook we had seen from the candidate donald trump on the campaign trail. His back is up against the wall, and he pushes back and away back in a way that is not politically correct. Joe people were talking about if this is going to be a new disciplines white house with the new chief of staff imposing order, perhaps getting more on message. With this press conference, it suggests there is really no in theg trump and immediate term getting past charlottesville they are not past it yet. Kevin they are not. This is how President Trump thanks. In order to get past charlottesville, he feels he needs to come out swinging. Essentially, you saw this when he was on the campaign trail at president ial debates. Use of his moments ago. Is President Trump going to change town, is a story line we have been following for several years. That is not the game that President Trump wants to say. For this matters is in the course you have now had ceos distancing themselves very publicly from this administration. You have also had the past 72 hours senior republican officials distancing themselves from this white house. People like senator hatch. We also have growing concerns amongst republicans about whether or not this type of argument will help them accomplish their legislative priorities. Is speaking about Economic Issues and their ability to get them over the political finish line, i can tell you the majority of americans who are going to be taki away from the federal government will not be focused on the policy but on the rhetoric. President trump said we still dont know all of the facts in charlottesville. When you think we are talking what you think he is talking about there . Marty i think he was trying to keep the notional life that it wasnt just white supremacist who caused violence. Allusions to things that still need to be revealed when weeks go by and nothing is yet revealed. It is not clear to me what he has in mind. Hisants to make sure in narrative that it is not just one side, but it is a number of sides. That is all it is. Know you talked earlier about how Stephen Bannon how Stephen Bannon a stop has been in jeopardy his job has been in jeopardy, but what President Trump was saying about the right and left is from bannons playbook. Even in the background he must be smiling. Josh i think he is. I think we saw from trump and the press conference, and this is not the purpose of the press they wanted to talk about infrastructure and that didnt happen, the visceral alttrump talked about the left and right is a reflection of bannon. Is surviving,ndit because trump sees the world like he does. There was no truer sign of that than in this press conference. I think this will have the effect of setting back trumps agenda and a leading business toders who have begun abandon him in the wake of charlottesville. This is not the president they want to be associated with. As far as being in the white house, it shows you where trumps park is. It is very close to where steve bannon stands. Bannon represents an ideology that doesnt resonate with many voters. Beyond the ideology, there are curious reports of people in the white house who wants ban to go. I think there was a report in york time. What is it about bannons present in the white house presence in the white house . Real the real driver of the notion that ben and was getting pushed out was the fight he has been having with the National Security adviser over Foreign Policy. Bannon is a noninterventionist. Mcmaster is a traditional Foreign Policy haw theyk have been fighting a public feud. That includes various press outlets. That is the thing that john kelly wants to clamp down on. I think the other thing people get frustrated with ben and in the white house is that he has sharp oboes and is very aggressive. You have the kind of connection with trump and respect from like reincedvisers priebus dont seem to have. I think there is jealousy and i think there is the fact that bannon hasnt been effective in what he tries to do. Whether it is counseling trump on how to respond to charlottesville. You have this concern he isnt offering good political advice. Fantastic perspective. We want to thank everyone who has been with us for the last half hour. Evin, marty, and josh reiterate from the amazing headlines that came out of this conference, President Trump is talking about the ceos leaving his counsel, saying they they areg it because not making products in the country. Charlottesville, he defended waiting a while before making a statement because he said he wanted to make sure what hes was correct said wasack what he correct. He also said there was blame on both sides of the rally. Then he talked about steve bannon, saying he is a good person and not a racist it comes to racial relations and have a gotten better, he says once he brings more just to the nation, that will have a big effect. From new york, this is bloomberg. Scarlet wells fargo announced Elizabeth Duke will follow stephen singer. Recorderberg banking joins us by phone to get us context. What will you tell us about this appointment . I think this is something people foreseen. As the chairman. He is going to be 72 in april of next year. The bank does require that all its Board Members to retire at for extenuating circumstances. We understood there would probably be a change in his chairman role. Chair at theinted same time he was given the chairman role. Abilgail to what degree does the appointment of Elizabeth Duke have to do with the full fake account scandal . Laura at this point beyond having the chairman needing to retire next year, you have the renewed pressure on the bank to make changes and show they are working on controlling a lot of these scandals because you had another scandal show up earlier, not even two months ago. I think in july. This was a new scandal in the consumer base. This one looked at auto loans and unwanted Car Insurance that was forced on a lot of customers, leading some of them to get their cars repossessed. All of of this in this, you had different investors and Public Officials calling to make more changes because we have more scandals coming. We want to thank you for giving us the latest on Elizabeth Duke. Up, Bleacher Report reaches more than 250 Million People each month. We will talk to the ceo to see how he has an able to connect to a young male audience. This is bloomberg. Inaugural nba Players Technology summit is being held in san francisco. This is bringing leaders in technology and sports. The ceo of Bleacher Report joins us. Great to speak to you. You guysart with hiring your first ever marketing chief. He has a lot of experience selling sponsorships across platforms. What will this mean for Bleacher Report . Well it looked vastly different in six months or a year from now . Dave i dont know if it will look vastly different, but we have a lot of momentum as a brand and a business. We have builtart, our business as a advertising companys as an advertising company. What the addition will allow us to do is to take trust and energy we have with our fans and to look at monetizing our business in different ways. This is something he has been great at over his career. Is also Bleacher Report expanding beyond sports to cultural coverage, including fashion and music. Can you explain why you are branching out and whether you worry about losing some of your core audience, the young male audience . Dave the young male audience is really interesting. 20 yearsrew up, 10 or ago, i think sports fans cared about wins and losses and watching the game. Today, your modern young, male consumer cares more about finding content that he or she can share with friends. Start social interactions that serve as a universal language for how people relate to one another. We have embraced that as a company. We thought about how to create content, cultural experiences that people want to share with their friends. In terms of branching out, i would phrase it differently. I think sports for young people blends into music and blends into other aspects of culture seamlessly. I dont think other people look at sports is a different maybe in music that in a way that may a 45yearold does. Scarlet you make a good point. This is something you see looking at the younger demographics. Star warss, you have and espn looking to double down on that sports heavy audience. Disney will be launching espn as its own streaming service in 2018. We see Companies Like facebook ,utting emphasis on video albeit not exclusively in sports. Had he seen this shaking out over the next five years . How do you see the visual media landscape looking . Where will we go to watch live sports and see that lead into d intoe . That bleedf culture . Was interested in where we will go to watch the game. Six is there are five or companies that will own life sports rights. Amazon, facebook, google, which of those get into sports in a big way and which dont. The interesting thing about espn and about the fact that those guys have owned the narrative around sports headlines and around how we should interpret sports for a very long time in this country. Wehink what has changed is as a sports news and culture brand who speak to our arguments audience, we speak to them to our audience as if we are sending alerts to our friends through text message or Something Like that. It is a different way of speaking to an audience. I think what is more interesting be the mostactually trusted source around sports and sports culture. Who will be the influence are about audience . Scarlet that is an interesting take. Speaking to your audience, if you look at the social following it is pretty impressive area part of your social success comes from your audience ensuring content constantly. You have been outspoken about facebooks the dominance and limiting the links to other websites. Yet, i know i have clicked my way to Bleacher Report many of times through someones status update on facebook. When it comes to facebook, is it your friend or enemy . Dave it is a very complicated relationship. All of us are in this business and trying to figure it out on a daytoday basis. That said, there are massive we in thehat Publishing Industry gain from having our content on facebook and on instagram. Thee as through for same is true for other big social platforms. We reach hundreds of millions of people who consume our content on a monthly basis through those platforms versus through our own. 60 Million People on a given month through our own website. We have a very large base, but those guys have an ocean. The green out the Business Dynamics how we sell advertising definitely e is has forced us to a halt. I think it puts pressure on other publishing countries companies. Said, becauses he the content is shared at a high rate and we reach so many people, we are fairly well positioned right now. Scarlet well said. Thank you for joining us from san francisco. It is complicated when it comes to the relationship with track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Reporter you are watching bloomberg technology. Lets start with a check the first word news. President trump double down on his initial statements that all sides share the blame to the deadly charlottesville nationalist march blessed weekend. He spoke at trump tower. There is blame on both sides. You look at both sides, i think there is blame on both sides. I have no doubt about it and you dont have any doubt about it either. Reporter meantime, he isnt saying what happens next with chief strategist steve then Stephen Bannon. The leaders of four minority house caucus groups called for his removal. Ending payments to help low income americans would raise a federal spending by 194 billion over the next decade. President trump threatened to cut off payments to force democrats to the negotiating table. Alabama is expecting a low voter turnout for 10 days primary for the republicans and enter republican senator. Theyre