Better than estimated. How would you characterize the recent data and the strength of the economy . Win i would say its solid. We had some outliers, but you look at some models, the atlanta fed has growth somewhere around 2. 3 . The new york fed now has some thing around 1. 2 . I expect the truth is somewhere in between. I think we will avoid recession in 2020. Thats what the yield curve is telling us. We went from an extended period of inverted yield last year to positive. I think markets feel pretty good. That said, we have a few hurdles out there. Vonnie iran the and one of them. How do you see this escalating tension, the titfortat impacting markets, particularly currency markets . Win we started the year pretty much popping open champagne, hitting record highs in the equity market, but we got a serious dose of reality. A. Trump has ignited situation in an already quite unstable region. Iran has pledged retaliation. When, what, where, we dont know. That is not just against u. S. Its a very wide ranging possibility, but markets are braced for some sort of retaliation. I think that is going to keep a lid on any sort of significant rally in risk assets. Equities, emerging markets, etc. Safe haven plays should remain in play. Dollar, investors in yen. Gold is hitting highs, oil is elevated, but a lot of uncertainty. As you know, markets hate uncertainty. Guy the markets seem remarkably calm about this whole story. Weve seen oil come up a little bit. Equity markets have sold off a little bit, but nothing dramatic. It pales in comparison in terms of the rise we have seen. Why should this become a big story . Why should this become anything more than just another geopolitical issue in the middle east that we are also used to . That we are all so used to . Win i think this is the elephant in the room. Iran has been on slow boil for years, if not decades. Its one of the biggest countries there from a geopolitical standpoint, bigger than a rock and any of the then iraq and any of the other areas of concern. This is really a big deal. Spikes, we we have have spikes down, but we saw last september when the Saudi Oil Facilities were attacked, we had a big spike up in oil that came back down. I think what is playing out now has potential to be somewhat long and drawn out, and again, and extended period of uncertainty is not good for markets. Guy the u. S. Doesnt really rely on the gulf for its crude. China relies on the gulf for its crude. Beijing is going to make it very clear that tehran should not block the strait of hormuz, that the iranians should not escalate this too far. Are we looking the wrong way when we see the risk here . Situations,sorts of irrationality sometimes becomes the key word. It is very hard to predict. I would say that in an extended lower oil prices, the europe, asia, china, india , it is really going to be attacks on these consumers. Brothersin thin, rum win thin, Brown Brothers harriman global head of currency strategy, stays with us. Get to secretary of state mike pompeo now. Sec. Pompeo if you have questions about the middle east and iraq, i will take questions, but first i want to offer my condolences to the people of australia for the tragic loss of life and property across the region. Americas thoughts and prayers are with the victims, their families, and the Emergency Personnel putting their selves in harms way, and the same go american firefighters standing with their brothers in australia. We have a truly an breakable alliance. We are great friends, and we are happy to help in this time of need. In asia, we noted the head ofent at the new the Government Liaison Office with hong kong. For the Chinese Communist party to honor its commitments made to hong kong in the british joint declaration filed at the united nations, ache, but guarantees the territorys rule of law and the freedoms that those living on the mainland unfortunately do not enjoy. We will continue to work with hong kong and the Chinese CommunistParty Officials to protect human rights and fundamental freedoms in hong kong and to promote hong kongs high degree of autonomy. There is anan, aspect of that conflict that deserves more attention, and that is the Islamic Republic of irans involvement there. Iran has refused to join the regional and International Consensus for peace, and is in fact today actively working to undermine the Peace Process by continuing its long global efforts to support militant groups there. Was people know about irans proxy networks in the arab world, but they also have relations with the taliban and other groups. Entanglement in irans dirty work will only harm the afghanistan Peace Process. A couple of are the a couple of other items, venezuela, i want to congratulate juan guaido on his reelection at the national assembly. The Nicolas Maduro campaign of intimidation and bribery could. Ot derail venezuelan democracy i applaud how venezuelas Political Parties came together to support guaidos reelection. The u. S. Will continue to support president guaido and the venezuelan people and will encourage all other freedom loving nations to do the same thing. We believe the western hemisphere should be a hemisphere with freedom. I also want to highlight the work of the ois, which has been an enter mental pool which has been an instrument to pool. Secretarygeneral is the leader we need for the ois. Say about the multilateral reform in the coming weeks. On the theme of basic freedoms, i want to commend members of everins counsel presented his understatement in which they expressed concern or the inhumane and painful uighurions to which muslims in china are subjected. Humanre committing mass Rights Violations on muslims held in detention in china. Denounce the brutal treatment which is part of the countrys broader war on faith. Moving to europe, i looked over Prime Minister here. I also want to recognize the undersecretary will travel to brussels later this week to have conversations with 28 european counterparts. This is a recurring meeting that happens about every six months. This particular gathering is important because it immediately precedes an eu foreign ministerial on iran that has just been scheduled, and shows close cooperation with our European Partners on issues of mutual concern. I am sure while david is there, the issue of iran and iraq will feature prominently in their conversations, and they will have an opportunity to discuss other areas of priority as well. Finally, one more personnel matter, i want to thank ambassador john bass, who have as director of the Central Intelligence agency and now a secondary of state. He is a respected strategic thinker, a man of incredible integrity. Hes helped that country before to a brighter, more peaceful, and more secure future for all the afghan people, and i want to welcome our 11 new ambassadors that were confirmed since the end of november, including ambassador sullivan, who will be heading off to russia before too long. We hope to have more follow them. With that, i am happy to take a few questions. Thank you. Happy new mr. Secretary. In honor of the new year, i have exactly 2020 questions, but i will pare them down for the sake of brevity. There continue to be questions about the nature of the intelligence that led to the strike that killed general soleimani. Can you be at all more specific about how immanent this was, what exactly it was . Secondly, why not allow the foreign minister to come to the u. N. To speak at the Security Council . Lastly, does the situation in iran contribute at all to your decision not to run for the senate in kansas . Sec. Pompeo thank you. The last one is easy. I said the same thing yesterday i have said for months. No real news there. I will stay serving a secretary of state so long as President Trump shall have me, so no. If you can accuse me of being inconsistent on that one. You know, we dont comment on visa matters, those traveling to the United States on visas, so i oft add much to this issue the foreign minister traveling to the United States. We will always comply with obligations under the yuan requirements, and with you in with un requirements. Theres been much made about the question of intelligence and eminence. I entered it multiple times on sunday. I am happy to walk through it again. Anytime a president make sit decision of this magnitude, there are multiple pieces of information that come before us. We presented that to him in all its broad detail, gave him all the best information that came not only from the intelligence committee, but those who had teams in the field. We evaluated the relevant risks and the opportunity we thought might present itself at some point, and we could see clearly that not only had soleimani done about,the things we know massacres in, enormous distraction of ,ountries like lebanon and iraq and we watched as he continued to the Terror Campaign in the region. We know what happened at the end of last year in december, ultimately leading to the death of an american, so if youre looking for eminence, look no further than the days that led up to the strike that was taken against soleimani. In addition to that, you have what we can see where continuing efforts on behalf of this terrorist to build out a network of Campaign Activities that were going to lead potentially to the death of many more americans. It was the right decision. We got it right. The president had an entirely legal, appropriate basis, as well as a decision that fit perfectly within our strategy and how to counter the threat of malign activity from iran more broadly. Questions,etary, two if you dont mind. Ministerreign affairs said that soleimani was on a diplomatic visit to iraq, that the u. S. Strike to taken out was state terrorism, that President Trump has prepared to permit war crimes, and that iranians are enraged. I would like your reaction to that. Hasnd, President Trump indicated that irans cultural sites could be targeted. Is that true . If so, do you consider that a war crime . Sec. Pompeo lets see. The statement that soleimani was traveling to baghdad on a Diplomatic Mission, is anybody here believe that . Is there any history that would indicate it was remotely possible that this kind gentleman, this diplomat of great order Qasem Soleimani, traveled to the baghdad for the idea of conducting a Peace Mission . I am mckinney reporters left this morning. Thats fantastic. You know thats not true. We know in that moment that was not true. He is a propagandist of the firstorder, and most of what you suggested in his text message or email or message that you laid out was indeed irani iranianaganda indeed propaganda. It is false. He was not there on a Diplomatic Mission trying to resolve a problem. There has been some story that he was there representing a s audi peace deal. I have spoken to my saudi counterparts at great length, but i can assure you they share my view that he was not there rep is in big some kind of agreement that was going to reduce risk of the lives to americans on that trip. Your last piece was about cultural sites. I said on sunday, i will reiterate again, every target that is being reviewed, every effort being made will always be conducted inside international law. I have worked on this project, and i am very confident of that. Thank you. And you election year, are now facing two Nuclear Related crises with iran and north korea. Are you optimistic about resolving either of those without them blowing up, so to speak, at inopportune moments . Irans breakout time when you got into office was considered to be a year. Would you consider that to be longer or shorter . Sec. Pompeo i will leave that to the Intelligence Community, but President Trump could not be more clear, iran will not get a Nuclear Weapon. When we came into office, iran was on a pathway provided by the nuclear deal which clearly gave them the opportunity to have those Nuclear Weapons. We wont let that happen. As for the first question, which was more broadly, what President Trump laid out in his National Security strategy with respect to north korea and iran is the plan we have executed. Have put iran in a place it has never been before, where they have had to make some very difficult choices about how to pay for and underwrite their proxy militias around the region , whether and how to build out their missile program. This is a flip from where we were eight years before. The Previous Administration made a different choice. They chose to underwrite and appease. We have chosen to confront and contain. Those are different strategies. We believe ours is successful and it will ultimately be successful in making iran behave like a normal nation. Weve denied them the capacity to build out their Nuclear Program and threaten not only americans and our lives, but also to create an enhanced stability throughout the middle east. In north korea, we still are hopeful that we will be able to head down a path. I was here with you in december when there was lots of talk about what might happen at the end of the year. We have not seen that yet. We still remain engaged and hopeful that we can have a conversation about how to get the denuclearization that chairman kim promised to President Trump and 2018. I will take one more. Thank you very much. Two quick things here on the soleimani strike. Since the Trump Administration withdrew the United States from the Iran Nuclear Deal about two years ago or so, the Trump Administration has said repeatedly that it is pursuing against iran maximum Pressure Campaign. First question, the soleimani operation, was that part of the maximum Pressure Campaign . A secondeo is there one . Just ask them both and i will tackle them both. To your knowledge, was any Legal Counsel in the acadian of branch consulted for in the executive branch consulted for their legal input on the strike and its execution . Sec. Pompeo i can say that i have never seen this administration engage in activity of this nature without a thorough and complete legal review of what the bases would be if the president were to make a decision. All of the options that were being percent to do the president in advance of them being presented, such that everything being presented to him has fully been vetted through the legal process. I am confident that is the case here, although i do not have specific knowledge of it. Second, you asked about the scope of the strategy and the maximum Pressure Campaign we have had in place. As a global medic component it has had a diplomatic component, an economic component, and a military component. Since mayave seen 2018 when we withdrew from the Iran Nuclear Deal, you have seen us eggs cute that is enormous see ness executed that with enormous you have seen us exit cute that with enormous vigor and energy. Go back and look from may of last year. Go look at the statement that was made in warsaw, the united statement centering on instability in the middle east on the islamic public of iran. The coalition now in the streets of her move, we have to pull medically the strait of hormuz, we have diplomatically isolated the iranian regime. We have watched the regime struggle to figure out how it was they were going to make it through 2020. Theyve got a budget that will fall short by a significant amount as a direct result of the pressure we have put on the regime. You saw over not just this past week, but over the last year, you have seen our security component to this. You have seen us reinforce allies in the region by ensuring that the emirates and saudis and all of the others were prepared for what might happen if iran decided to makes that were bad for the iranian people. You saw more technically these last few days the president s response when the iranians ate a bad decision to kill an american. We hope they wont make another bad decision like that one. The soleimani strike was part of the administrations maximum Pressure Campaign, and going forward, the iranians should understand as they develop their calculus that similar actions such as the soleimani strike could well continue to be a feature of this maximum Pressure Campaign . Sec. Pompeo i think the president has been unable u. S. In the remarks he made in florida has been unambiguous in the remarks he made in florida. That, inmination is the event the iranians make another bad choice, he will respond in the way he did last serious abouts the constraints we will place on that regime so that it does not continue to harm american lives. Our concern is protecting and securing the homeland and protecting american life. The efforts we have taken last week and the strategy we have employed has saved american lives. I am highly confident of that. I will take one more. Andrea, yes maam. How are you . Thank you very much. On the issue of cultural sites, the president said on air force one coming back after you