Transcripts For BLOOMBERG Bloomberg Markets The Trump Econom

Joins us in d. C. We understand Anthony Scaramucci in new york, but what is washington saying about the new hire . Is twoith striking things. Theyll trumps been trying to find him a job since he got elected president. He was named as a possible ambassador and a couple of other things came down. Do best himself from sky Bridge Capital by selling to a chinese owned conglomerate which raised eyebrows in washington. Centerw back front and inc. And medications director at the second thing people think year is you doesnt know that much about washington. He may know a lot about moving money around. Some people think thats important in the strategies job, and medications director is thought of as plotting strategy. What we are told by sources close to the white house is that he is therehe for one reason, to defend donald trump. Hes a sharp elbowed guy and trump has always felt the configurations team didnt do is lookingr defense to scaramucci to complete that role. Then we are watching Briefing Room and reporters getting ready for the 2 00 press briefing. But sean spicer and rice previous, the president jesus the president chief of staff are so closely aligned. Do think that sean spicer is going to disappear from washington politics . Craig absolutely not. I think of him as a professional spokesman. He has a position and is a hardcore republican partisan. He argues that position well. He and trump have pretty good personal chemistry, he felt he wasnt the face of the administration he wanted. I think sean spicer can come out of this with his head held high. Hes been an honest worker with a lot of us and hes been a tough spot. We had some tough scrapes with sean on some of the stories we have done. Its the nature of the beast. But a lot of people think of him as a pro and i think you will do fine. Reince priebus said as a message earlier today that he supports the move to scaramucci and he is ready to stand by the president. It must be tough coming in sean spicer are very close personally and professionally from the days of Republican National committee. With stuffbe done happening at the white house, but right now, this is plenty for one day. Julia you could get a holiday and lie down in a darkened room. Sit down with did scaramucci in may and they talked about President Trumps assertion that the press was biased against him. This was a challenge. That the in administration could be doing a better job of softening the the press, but the president has made a reasonably Fair Assessment that most of the rest is biased against him. He lassos that phone from him. I texted was someone who was original trump stafford is that it would be a good day for the originals. The virtue between original staffers and the Reince Priebus guard is on display. Kevin as greg orton pointed out, sean spicer is not is very you are from washington. We think red gordon, and lets get a check of where the markets stand. Taylor riggs is here with the latest. Taylor starting up with the latest, when sean spicer news broke, we didnt see a lot of news reaction in the markets. It was pointed out the s p 500 and the nasdaq up near the highs of the session and we are still seeing some declines today. Some of the earnings were looking at, because we are in the midst of earnings season are the auto parts sector. Im a start with one auto parts sector and looking at, saying they are still seeing high salesories and slowing momentum. That is pushing down stocks almost 8 today. One of the thing they mention on their Earnings Call was organic revenue growth, growing internally versus going through m a. Thats abnormal 2 versus estimates of 4 . Oil is another big story we are looking at, all back russia meeting in st. Petersburg to try and figure out how they can solve the problem of this global oil glut. I think the market is not as confident that are going to get anything significant from that. Morning,ound 47 this and plunging lower now, hovering right below 46 a barrel. How does that all tie into what were seeing . 5213, here we have the , P Energy Sector and white normalize returns a year following significantly compared to the s p 500 in blue. As negative correlation, what catches my eye is negative correlation, on the scale of negative one to one being positively correlated versus not. Is it a. 3. Not a huge deal, but some divergence between the Energy Sector and the s p 500. Kevin thank you, taylor. Julia its not only that is getting shaken up. President trump is restructuring its legal team under the shadow of an evergrowing russia investigation grows ever darker. Kevin this is bloomberg. Julia this is Bloomberg Markets, Bloomberg Markets the trump economy. The expanding russian probe could set the stage for a clash between trump and Robert Mueller. The president could consider firing special Counsel Robert Mueller for trying to oust mueller would spark a justice of our michigan. Shanker,ave marty executive editor of International Governments and economics with us here in the studio. Such a treat today. Great to have you on. Marty im not sure who is in washington. [laughter] julia we are glad you are here. Lets talk about this situation first. Theres no indication at this stage that donald trump wants to remove Robert Mueller, lets talk about the effective complications of actually doing that. Hes not the man who does the firing. Marty he has to go to rob personein, and that might refuse, and they would have to go down the food chain in the Justice Department until he found someone who was willing to fire him. Was a lot of discussion in the white house, its not clear that he is really seriously considering it. His new Legal Adviser says they are not considering it. That season that we got from Shannon Pettypiece from President Trumps legal team saying that he still supported special counsel mueller was sending the signal, no . It struck me that a lot of people were advising him to do that, dont comment on and let the investigation take its course and support the investigation. Keeping on message in the trump world usually lasts a couple of hours. Kevin or a couple of tweets. Marty him to see if it really is a policy they are adopting. Kevin one of the other reports was all trump potentially investigating whether a president can pardon himself or found if anything is untoward. Can one pardon oneself . Theres a lot of chatter within this white house from all kinds of places in all corners, all people talking to other people in the press, so have there been discussions . You may have been a three minute discussion and then they moved on. Kevin i want to pick up a point that marty raised, which is what does this mean for congress . Europe there talking to lawmakers every single day. What are republicans tell you specifically about every twist and turn of these latest news stories regarding russia . Theres a pattern that developed over time, republicans want to stay as far away from this as they can. If you run the intel committee, you cant actually do that, and he has shown bipartisanship and independence when looking at that. Republicans want they always say every time they are asked, they want to get back to work. Kevin a lot of these republicans if you are senator dean heller republican up from reelection, can you really stay away from this . The president just a few days ago call him out with health care. Its tough. They are hit from both angles. Dean heller does that tough election, hes is the only republican up in 2016 2018 of the senate was from a state Hillary Clinton one won. He still has a win a republican primary to survive to the general election and primary voters still love trump. They have to worry about that and about the fact that people are watching congress to see how they handle this. The president s popularity as high with the majority of people who disapprove of his handwringing his handling of russia and republicans are caught in a very difficult place. They are not getting big policy things done. They dont have a major legislative achievements. Craig its difficult when itsdent trump marty difficult when President Trump is meeting with his primary challengers. As much as we in the media are fixated on the entry goods going on in washington, there is a big policy question here is to what extent this overshadows efforts on policy, and whether or not democrats are involved with this republicans undermining themselves,. Marty you cant lose sight of the fact that the government is not run from the Upper West Side of manhattan. Theres a vast middle of this country who strongly support donald trump, and even amid all these investigations and seeming chaos in the white house, they are absolutely supportive of this president and the democrats have shown no ability to take advantage of it. Julia its a critical point at this stage. Where we left off with a Robert Mueller investigation and other reports suggesting they are trying to find conflicts of interest. The civilization is trying to find it rather than having an apparent faceoff with Robert Mueller, they are trying to be smarter about it and try and discredit those who are leading this investigation. Marty they are getting ready for what could be a very difficult findings from the mueller and corey. , when discussing the Shannon Pettypiece what his strategy is, said they have every confidence in mueller and they are not looking to discredit him or the people who are working for him. There are a lot of democrats who are working as investigators. Its difficult to find republicans who would be willing to investigate the president. There may be a logical excavation. Kevin its not just russia that republicans on capitol hill are talking about. Next week, theyre seemingly could be a health care bill, it is expected to fail. Walk us through how important things like these tax reform hearings are going to be and also this minibus in the house of representatives because of the stage. Vote isealth care likely to take place on tuesday. Have been back and forth on this several times and they rescheduled and reschedule the vote. I think were public and leadership is determined to have this on tuesday. ,ith our without john mccain who has been tragically diagnosed with brain cancer and is unlikely to be back imminently. The situation has gotten so chaotic, they have been backandforth on whether to remote whether to vote on a , whichand replace bill they have been revising constantly, or just vote on a repeal only bill with a twoyear bridge as they did in 2015 and put it on president obamas desk. He vetoed it. They dont know what building are going to us they get on the motion to proceed. This whole project to die in the cradle before it even comes up for debate in the senate, which is astonishing for a sevenyear promise. You mentioned the action of the house that happening with the budget resolution. It would set the stage for tax reform. The house is focused on that because theyve gotten health care out of the way and they are very eager, especially paul ryan, to move on to taxes. Election year politics only complicate the project next year. The senate is much further behind than the house on the particulars of tax reform. There are these big six talks happening between them is greater officials between administration officials, they are hoping to release something early september. We see how that hands out. Pansat hands out that out. Julia we will see how that works out this week. Marty shanker, Senior Executive editor on set with us here. We are showing you the press Briefing Room in light of news today that sean spicer is resigning in a new press secretary in the form of Anthony Scaramucci that will be an onair press meeting and we will be bringing you that right here. Lets get a check on the bloomberg first word news this afternoon with him at chandra. White houseng up news, press Secretary Sean Spicer resigned today after financiertrump hired Anthony Scaramucci as his medications director, according to a white house official. White house chief of staff Reince Priebus says he supports scaramucci 100 . Hes been mentioned for several other jobs in the administration. Meanwhile, President Trump is shaking of his legal staff, john doubt will now be the lead attorney on the team dealing with Robert Muellers special investigation into russia. Doubt is denying reports that the president wants to highlight potential conflict of interest on the special counsel team. ,es replacing market is lets who is a scaleddown role. Rock and demonstrators frustrated over inequality and corruption clashed with police and unauthorized protest today. Police surrounded the city center and fired tear gas to disperse crowds. They had running battles with protesters whose get in the side streets. At a british judge has said the parents of charlie dobkin present new evidence an upcoming hearings to determine the childs fate. The 11monthold parents have battlegaged in a legal instrumental treatment. Experimental treatment. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Id. At chandra, this is im emma chandra. This is bloomberg. Kevin french hill will join us to talk about a in efforts to overhaul taxes. This is bloomberg. Julia this is Bloomberg Markets the trump economy. Kevin im kevin cirilli. Julia looking at the White House Press Briefing Room, where we are getting a briefing at eastern, after the announcement of a change in communication strategy for donald trump and his at administration. Anthony scaramucci will be taking over, sean spicer retiring today. It will be an Online Meeting and 40 minutes. Who isevin kevin going to be behind the podium . We dont know. Julia it is seven years the day since doddfrank became law, and the nations 10 largest banks made 30 billion last quarter, a of Million Dollars short precrisis levels. His deregulation the right move right now . Hill who gotnch christmas who joins us from philadelphia. When you hear numbers like that from the bank that the optics of talking about talking about deregulation are made tougher. Would you agree . Hill its the seventh anniversary of doddfrank and doddfranks promise was we would have a more competitive, safer Banking System with more choices for consumers. What resulted in is big banks are getting bigger and still have their institutional risk of being too big to fail. Community banks and small brokerdealers and consumers are not as well off, in terms of financial choice. This day, we are not celebrating doddfrank. We are celebrating working for six years on the idea that to fix it, we believe that the bill we passed on the house just a few days ago called the financial choice, which will right size the regulatory approach and not be onesizefitsall. Kevin the House Budget Committee earlier this week passed a market advancing to the floor to get a vote on it next week. The repeal of doddfrank could actually be attached to other peoples legislation. Health care is likely to fail, but what could realistically get done with regards to deregulation . What specifically could get done in tax reform and also doddfrank . Congressman hill thanks, kevin. In the area of rightsizing regulation, we ought to agree to the Community Banks where we lost almost a bank and day since the doddfrank act was signed we want to tailor regulation for small, local Community Banks on main street. I would hope one of our features and doddfrank, which is an offramp for Community Banks from some of the oppressive levels of regulation that is prudent for large banks can be done. Thats number one. Number two, i think the designation of a bank or nonbank is too big to fail. I think that needs clarification. I think there are votes in the house and senate to fix the elements. And finally, we want to make sure that the Consumer Financial Protection Bureau has oversight from congress. Those three areas are ones i think are important for us to take action on this year between the house and the senate, and get a bill to President Trump. Reform . Hat about tax theres no plan. I talk to people in new york city and they want specifics on the tax plan, and there isnt one. When are we going to get a plan . Julia nor are they expecting one. Which is unfortunate. Congressman hill your previous guest was talking about the process of getting in 18 budget agreed to buy the house and senate, and that gives us the reconciliation to really so we are not filibuster in the senate to move tax reform next. She also referenced the leadership talks between the treasury in the house and senate. These are all important to lay the predicate for tax reform, which i hope includes territoriality for her to help American Companies being competitive by going to territoriality for large companies, simplify lower rates for families, and create incentives for more Capital Formation in our country to grow the economy faster. Simplification, rate modification, and fixes Anthony Scaramucci<\/a> in new york, but what is washington saying about the new hire . Is twoith striking things. Theyll trumps been trying to find him a job since he got elected president. He was named as a possible ambassador and a couple of other things came down. Do best himself from sky Bridge Capital<\/a> by selling to a chinese owned conglomerate which raised eyebrows in washington. Centerw back front and inc. And medications director at the second thing people think year is you doesnt know that much about washington. He may know a lot about moving money around. Some people think thats important in the strategies job, and medications director is thought of as plotting strategy. What we are told by sources close to the white house is that he is therehe for one reason, to defend donald trump. Hes a sharp elbowed guy and trump has always felt the configurations team didnt do is lookingr defense to scaramucci to complete that role. Then we are watching Briefing Room<\/a> and reporters getting ready for the 2 00 press briefing. But sean spicer and rice previous, the president jesus the president chief of staff are so closely aligned. Do think that sean spicer is going to disappear from washington politics . Craig absolutely not. I think of him as a professional spokesman. He has a position and is a hardcore republican partisan. He argues that position well. He and trump have pretty good personal chemistry, he felt he wasnt the face of the administration he wanted. I think sean spicer can come out of this with his head held high. Hes been an honest worker with a lot of us and hes been a tough spot. We had some tough scrapes with sean on some of the stories we have done. Its the nature of the beast. But a lot of people think of him as a pro and i think you will do fine. Reince priebus said as a message earlier today that he supports the move to scaramucci and he is ready to stand by the president. It must be tough coming in sean spicer are very close personally and professionally from the days of Republican National<\/a> committee. With stuffbe done happening at the white house, but right now, this is plenty for one day. Julia you could get a holiday and lie down in a darkened room. Sit down with did scaramucci in may and they talked about President Trump<\/a>s assertion that the press was biased against him. This was a challenge. That the in administration could be doing a better job of softening the the press, but the president has made a reasonably Fair Assessment<\/a> that most of the rest is biased against him. He lassos that phone from him. I texted was someone who was original trump stafford is that it would be a good day for the originals. The virtue between original staffers and the Reince Priebus<\/a> guard is on display. Kevin as greg orton pointed out, sean spicer is not is very you are from washington. We think red gordon, and lets get a check of where the markets stand. Taylor riggs is here with the latest. Taylor starting up with the latest, when sean spicer news broke, we didnt see a lot of news reaction in the markets. It was pointed out the s p 500 and the nasdaq up near the highs of the session and we are still seeing some declines today. Some of the earnings were looking at, because we are in the midst of earnings season are the auto parts sector. Im a start with one auto parts sector and looking at, saying they are still seeing high salesories and slowing momentum. That is pushing down stocks almost 8 today. One of the thing they mention on their Earnings Call<\/a> was organic revenue growth, growing internally versus going through m a. Thats abnormal 2 versus estimates of 4 . Oil is another big story we are looking at, all back russia meeting in st. Petersburg to try and figure out how they can solve the problem of this global oil glut. I think the market is not as confident that are going to get anything significant from that. Morning,ound 47 this and plunging lower now, hovering right below 46 a barrel. How does that all tie into what were seeing . 5213, here we have the , P Energy Sector<\/a> and white normalize returns a year following significantly compared to the s p 500 in blue. As negative correlation, what catches my eye is negative correlation, on the scale of negative one to one being positively correlated versus not. Is it a. 3. Not a huge deal, but some divergence between the Energy Sector<\/a> and the s p 500. Kevin thank you, taylor. Julia its not only that is getting shaken up. President trump is restructuring its legal team under the shadow of an evergrowing russia investigation grows ever darker. Kevin this is bloomberg. Julia this is Bloomberg Markets<\/a>, Bloomberg Markets<\/a> the trump economy. The expanding russian probe could set the stage for a clash between trump and Robert Mueller<\/a>. The president could consider firing special Counsel Robert Mueller<\/a> for trying to oust mueller would spark a justice of our michigan. Shanker,ave marty executive editor of International Governments<\/a> and economics with us here in the studio. Such a treat today. Great to have you on. Marty im not sure who is in washington. [laughter] julia we are glad you are here. Lets talk about this situation first. Theres no indication at this stage that donald trump wants to remove Robert Mueller<\/a>, lets talk about the effective complications of actually doing that. Hes not the man who does the firing. Marty he has to go to rob personein, and that might refuse, and they would have to go down the food chain in the Justice Department<\/a> until he found someone who was willing to fire him. Was a lot of discussion in the white house, its not clear that he is really seriously considering it. His new Legal Adviser<\/a> says they are not considering it. That season that we got from Shannon Pettypiece<\/a> from President Trump<\/a>s legal team saying that he still supported special counsel mueller was sending the signal, no . It struck me that a lot of people were advising him to do that, dont comment on and let the investigation take its course and support the investigation. Keeping on message in the trump world usually lasts a couple of hours. Kevin or a couple of tweets. Marty him to see if it really is a policy they are adopting. Kevin one of the other reports was all trump potentially investigating whether a president can pardon himself or found if anything is untoward. Can one pardon oneself . Theres a lot of chatter within this white house from all kinds of places in all corners, all people talking to other people in the press, so have there been discussions . You may have been a three minute discussion and then they moved on. Kevin i want to pick up a point that marty raised, which is what does this mean for congress . Europe there talking to lawmakers every single day. What are republicans tell you specifically about every twist and turn of these latest news stories regarding russia . Theres a pattern that developed over time, republicans want to stay as far away from this as they can. If you run the intel committee, you cant actually do that, and he has shown bipartisanship and independence when looking at that. Republicans want they always say every time they are asked, they want to get back to work. Kevin a lot of these republicans if you are senator dean heller republican up from reelection, can you really stay away from this . The president just a few days ago call him out with health care. Its tough. They are hit from both angles. Dean heller does that tough election, hes is the only republican up in 2016 2018 of the senate was from a state Hillary Clinton<\/a> one won. He still has a win a republican primary to survive to the general election and primary voters still love trump. They have to worry about that and about the fact that people are watching congress to see how they handle this. The president s popularity as high with the majority of people who disapprove of his handwringing his handling of russia and republicans are caught in a very difficult place. They are not getting big policy things done. They dont have a major legislative achievements. Craig its difficult when itsdent trump marty difficult when President Trump<\/a> is meeting with his primary challengers. As much as we in the media are fixated on the entry goods going on in washington, there is a big policy question here is to what extent this overshadows efforts on policy, and whether or not democrats are involved with this republicans undermining themselves,. Marty you cant lose sight of the fact that the government is not run from the Upper West Side<\/a> of manhattan. Theres a vast middle of this country who strongly support donald trump, and even amid all these investigations and seeming chaos in the white house, they are absolutely supportive of this president and the democrats have shown no ability to take advantage of it. Julia its a critical point at this stage. Where we left off with a Robert Mueller<\/a> investigation and other reports suggesting they are trying to find conflicts of interest. The civilization is trying to find it rather than having an apparent faceoff with Robert Mueller<\/a>, they are trying to be smarter about it and try and discredit those who are leading this investigation. Marty they are getting ready for what could be a very difficult findings from the mueller and corey. , when discussing the Shannon Pettypiece<\/a> what his strategy is, said they have every confidence in mueller and they are not looking to discredit him or the people who are working for him. There are a lot of democrats who are working as investigators. Its difficult to find republicans who would be willing to investigate the president. There may be a logical excavation. Kevin its not just russia that republicans on capitol hill are talking about. Next week, theyre seemingly could be a health care bill, it is expected to fail. Walk us through how important things like these tax reform hearings are going to be and also this minibus in the house of representatives because of the stage. Vote isealth care likely to take place on tuesday. Have been back and forth on this several times and they rescheduled and reschedule the vote. I think were public and leadership is determined to have this on tuesday. ,ith our without john mccain who has been tragically diagnosed with brain cancer and is unlikely to be back imminently. The situation has gotten so chaotic, they have been backandforth on whether to remote whether to vote on a , whichand replace bill they have been revising constantly, or just vote on a repeal only bill with a twoyear bridge as they did in 2015 and put it on president obamas desk. He vetoed it. They dont know what building are going to us they get on the motion to proceed. This whole project to die in the cradle before it even comes up for debate in the senate, which is astonishing for a sevenyear promise. You mentioned the action of the house that happening with the budget resolution. It would set the stage for tax reform. The house is focused on that because theyve gotten health care out of the way and they are very eager, especially paul ryan, to move on to taxes. Election year politics only complicate the project next year. The senate is much further behind than the house on the particulars of tax reform. There are these big six talks happening between them is greater officials between administration officials, they are hoping to release something early september. We see how that hands out. Pansat hands out that out. Julia we will see how that works out this week. Marty shanker, Senior Executive<\/a> editor on set with us here. We are showing you the press Briefing Room<\/a> in light of news today that sean spicer is resigning in a new press secretary in the form of Anthony Scaramucci<\/a> that will be an onair press meeting and we will be bringing you that right here. Lets get a check on the bloomberg first word news this afternoon with him at chandra. White houseng up news, press Secretary Sean Spicer<\/a> resigned today after financiertrump hired Anthony Scaramucci<\/a> as his medications director, according to a white house official. White house chief of staff Reince Priebus<\/a> says he supports scaramucci 100 . Hes been mentioned for several other jobs in the administration. Meanwhile, President Trump<\/a> is shaking of his legal staff, john doubt will now be the lead attorney on the team dealing with Robert Mueller<\/a>s special investigation into russia. Doubt is denying reports that the president wants to highlight potential conflict of interest on the special counsel team. ,es replacing market is lets who is a scaleddown role. Rock and demonstrators frustrated over inequality and corruption clashed with police and unauthorized protest today. Police surrounded the city center and fired tear gas to disperse crowds. They had running battles with protesters whose get in the side streets. At a british judge has said the parents of charlie dobkin present new evidence an upcoming hearings to determine the childs fate. The 11monthold parents have battlegaged in a legal instrumental treatment. Experimental treatment. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Id. At chandra, this is im emma chandra. This is bloomberg. Kevin french hill will join us to talk about a in efforts to overhaul taxes. This is bloomberg. Julia this is Bloomberg Markets<\/a> the trump economy. Kevin im kevin cirilli. Julia looking at the White House Press<\/a> Briefing Room<\/a>, where we are getting a briefing at eastern, after the announcement of a change in communication strategy for donald trump and his at administration. Anthony scaramucci will be taking over, sean spicer retiring today. It will be an Online Meeting<\/a> and 40 minutes. Who isevin kevin going to be behind the podium . We dont know. Julia it is seven years the day since doddfrank became law, and the nations 10 largest banks made 30 billion last quarter, a of Million Dollars<\/a> short precrisis levels. His deregulation the right move right now . Hill who gotnch christmas who joins us from philadelphia. When you hear numbers like that from the bank that the optics of talking about talking about deregulation are made tougher. Would you agree . Hill its the seventh anniversary of doddfrank and doddfranks promise was we would have a more competitive, safer Banking System<\/a> with more choices for consumers. What resulted in is big banks are getting bigger and still have their institutional risk of being too big to fail. Community banks and small brokerdealers and consumers are not as well off, in terms of financial choice. This day, we are not celebrating doddfrank. We are celebrating working for six years on the idea that to fix it, we believe that the bill we passed on the house just a few days ago called the financial choice, which will right size the regulatory approach and not be onesizefitsall. Kevin the House Budget Committee<\/a> earlier this week passed a market advancing to the floor to get a vote on it next week. The repeal of doddfrank could actually be attached to other peoples legislation. Health care is likely to fail, but what could realistically get done with regards to deregulation . What specifically could get done in tax reform and also doddfrank . Congressman hill thanks, kevin. In the area of rightsizing regulation, we ought to agree to the Community Banks<\/a> where we lost almost a bank and day since the doddfrank act was signed we want to tailor regulation for small, local Community Banks<\/a> on main street. I would hope one of our features and doddfrank, which is an offramp for Community Banks<\/a> from some of the oppressive levels of regulation that is prudent for large banks can be done. Thats number one. Number two, i think the designation of a bank or nonbank is too big to fail. I think that needs clarification. I think there are votes in the house and senate to fix the elements. And finally, we want to make sure that the Consumer Financial<\/a> Protection Bureau<\/a> has oversight from congress. Those three areas are ones i think are important for us to take action on this year between the house and the senate, and get a bill to President Trump<\/a>. Reform . Hat about tax theres no plan. I talk to people in new york city and they want specifics on the tax plan, and there isnt one. When are we going to get a plan . Julia nor are they expecting one. Which is unfortunate. Congressman hill your previous guest was talking about the process of getting in 18 budget agreed to buy the house and senate, and that gives us the reconciliation to really so we are not filibuster in the senate to move tax reform next. She also referenced the leadership talks between the treasury in the house and senate. These are all important to lay the predicate for tax reform, which i hope includes territoriality for her to help American Companies<\/a> being competitive by going to territoriality for large companies, simplify lower rates for families, and create incentives for more Capital Formation<\/a> in our country to grow the economy faster. Simplification, rate modification, and fixes International Taxation<\/a> issue but i think is holding back american competitiveness. Kevin thank you, commerce and have in my hometown of philadelphia. I hope you get a cheesesteak. Im on the phone, we are talking about whos going to hold the press briefing today, it is going to be Sarah Huckabee<\/a> sanders stepping into the role. How soon Anthony Scaramucci<\/a> decides to step up to the plate. Plenty more to come talking about washington the next week ahead, from new york, this is bloomberg. Julia this is Bloomberg Markets<\/a> the trump economy. Im julia chatterley. Kevin im kevin cirilli. Ofare showing you live shots the press Briefing Room<\/a>. Julia we will get a briefing from Sarah Huckabee<\/a> sanders, who has a new boss. Kevin sean spicer is out, wall street known person around town Anthony Scaramucci<\/a> is in. How he meshes with the inside the beltway crowd will be fascinating. Donald trumpia himself. We will be talking more about that, but we start more with headlines with emma chandra. Emma the russian lawyer who met donald trump junior during the 20 campaign has represented a military unit operated by russias intelligence agency. Thats according to Court Filings<\/a> obtained by the associated press. President trumps eldest son, soninlaw, and Campaign Manager<\/a> met with her in june 2016, after trump jr. Was told she could provide potentially incriminating and bit information about Hillary Clinton<\/a>. Its official, the u. S. Government is now banning citizens from traveling to north korea. It comes after the death of auto warmbier. Otto he was in a coma when he was flown back to the u. S. , where he later died. Will accept the transmit of citizens after brexit. That will be a shift in tone from Prime Minister<\/a> theresa may, who has made regaining control over immigration policy a key part of her brexit approach. Hassaudi arabias king stripped the interior ministry of its authority over the Kingdom Security<\/a> agency. Those powers have been transferred to a newly created body overseen by the king. It comes after he appointed his son as crown prince last month. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra, this is bloomberg. Julia all eyes on the nations largest owner of broadcast tv stations, Sinclair Broadcasting<\/a> is flipping a switch as the company is turning 173 stations into a Cohesive Network<\/a> that brings in political commentator Boris Epstein<\/a> to their local newscasts. Newsesque segments are drawing criticism as the must run segments takeover. Joining us for the big cover story is bloomberg editor megan murphy. We give a little bit of insight into the story here, but first of all, who is Boris Epstein<\/a> and what is his relation to donald trump and sinclair . Familiarvin is quite with boris, a consistent presence on the campaign of a very vocal advocate of donald trump very early supporter during the campaign and is known for his views, the way he puts his views, in particular. Sinclair, he is doing these nine minute long segments where he dissects political views and takes on the white house and sometimes reprimands it and the other media on how they cover politics this season and donald trump in particular, this cycle. Its a much broader issue about sinclair and this large broadcasting firm but very few people are not familiar with. Their tactics and sort of really trying to expand this Network Using<\/a> very lowcost methods and , blendingroduction advertising in with their broadcasting as well. Its a fascinating story of media in the age of donald trump. Julia i want to show you the expense on which sinclair has tv stations. They are across Many Networks<\/a> as well, but these guys are pretty huge irrespective of the affiliations of networks and the various viewpoints that they have. That scope is wide and the company itself is growing. Megan the scope is wide and they are coming to the forefront because they are expanding further and acquiring Tribune Broadcasting<\/a> network to reduce 43 new tv stations into the network, including a very large markets like chicago, new york, los angeles. We forget with the rise of cable tv and how connected we are that there are so many people who still get their news through local broadcast stations. More than 20 million people. That is a big presence in that market. As they developed over time, one of the things thats been consistent with sinclair, whether its in seattle rather stations that theyve moved to is some resistance from existing employees about where these newscasts are going and is there too much political influence coming in at some of the broadcast . More mundane complex over advertising and what people are being forced to wear. They are known for extreme costcutting than one station, tt blocks to the supply closet that you had to turn at the same time to get in. I want to ask you, to followup on that. Originally, Sinclair Broadcasting<\/a> in the Media Business<\/a> we are familiar with sinclair. But they are expanding to more traditionally liberal cities. Their flagship and washington, d. C. , is looking to the west coast. Talk about just how the conservative type of plant in those markets might not be traditional in the way some folks realize. The followup i have for you is how they are actually crafting some of these local political outrage stories. Megan this is what we talk with cultivated outrage about things like hemp in seattle. They want to bring this special blend of crisis and outrage that so dominates the media landscape that we live in now and expand that further. Tensionface traditionally liberal markets, places like boston, seattle, chicago where im wrong where i am from. These are urban liberal areas where people are used to getting their news from a very Diverse Group<\/a> of sources. Its always going to be attention to be consistent in this fantastic piece is showing every time they want to expand further, they are really hamstringing themselves by this ,lmost lowvol, lowbudget austerity measures they put in place that really keep their production level in the way it looks and feels to be not in the same league as some of their competitors. Julia you could argue and adds some elements of balance to a perception that there is a liberal bias against some of these networks. I am scratching around to find reasons. Talk to me a little bit about the accusations of influence. There are those who say if there were some form of national favoritism, but contact with the Trump Administration<\/a> and the fact that trump put in his own man at the fcc that perhaps this deal with sinclair to enlarge themselves may never have happened in the first place. I know the ceo sinclair has denied any favoritism here. But theres all sorts of wheels within wheels when we are talking about the level of influence potentially thats going on here. Sinclair has been very firm about saying they received no regulatory favors and reject any allegations of bias. We do have to be careful to say how much are we putting that and treating them differently than we do in any other metric any network where they are trying to have a relationship with this white house, its been incredibly unusual. We see what happens today with sean spicer exiting and how thats what a change that relationship that they have with big broadcasters in particular anchors and people at networks. Theres no question that sinclair is different in one respect, in that they do have their stations run these must that is toldontent from a particularly conservative point of view in some cases. In other cases it talks about totally different things. But they do that. Its a bit unusual and something over time, as they expand even further into more markets, will have to see what the impact of that is and how much the Trump Administration<\/a> whether that is woven in. I think we should be careful make sure that all media organizations do grapple with their proximity to every administration, not just this administration, but the obama administration, etc. In terms of these issues of access and who they are talking to. You touched upon in there, the big news today at sean spicer is out in Anthony Scaramucci<\/a> is in. What role do you think he can play here . You are already laughing. She the communication strategy and perhaps rain in some of the tweeting . Megan lets be honest. [laughter] there has been this tension, kevin as it almost better than anyone about sean spicer being a dead man walking in the white house for quite some time. Many people are surprised he lasted as long as it did. It could signal a shift in the closer and closer this gets, very much trumps man, whether or not directionally they can get a handle on the message and get a handle on russia and the kind of issues of president wants to be talking about, which is jobs, manufacturing, the economy and making America Great<\/a> again, we will have to say they have proved catastrophically failure to do that in the first evidence of this illustration as we have seen with the debacle of health care and russia. Whether or not hes going to be the man to do that, we will have to see. Kevin Bloomberg Businessweek<\/a>s top editor kevin murphy, thats for coming on. You know in a phillies fan. You can read more about this and other political businesses in the revamped Bloomberg Businessweek<\/a> magazine, it is awesome. Julia as we were talking about and the changes we have same announced, sean spicer stepping down Anthony Scaramucci<\/a> taking over. You are looking at a live shot of the White House Press<\/a> Briefing Room<\/a>. We are counting down, another 20 minutes to go until we get that press briefing from Sarah Huckabee<\/a> sanders. We assume discussing the prospect of a new boss. Kevin coming up, how are democrats reacting . I spoke with one of the key senators, oregon democrat ron wyden. This is bloomberg. Julia this is Bloomberg Markets<\/a> the trump economy. Im julia chatterley. Kevin im kevin cirilli. S p earnings begin in earnest and financials were big part of the news. Lets get a check with taylor riggs. Taylor theres been a lot of attention on the five banks and reported earlier this week. Lets take a look at regional banks, capital one of over 8 , outperforming some of the rest of the regional banks. Credit quality is improving, thats a good thing. And money set aside for credit losses fell 11 . Very good news for capital one today. As we recap the week, i want to touch on the dollar. Bitmessage is a little wetter here than what we were translated. The dollar falling now for its second straight week almost 1 for the weekend going back to weeks its down over 2 . Dont now your lowest since may of 2016. I also want to recap Goldman Sachs<\/a> and where we stand for the week as we head into the weekend on a friday afternoon. Goldman now down for the week almost 3. 5 . A little bit of disappointing earnings on tuesday, particularly when we are looking at revenue coming from trading. Rival how aey, its beat, and they are actually up 3. 3 for the week. A little bit of diversions as we recap the week. Julia thanks, taylor. Were showing you live shots of the White House Press<\/a> Briefing Room<\/a>, we will be getting a briefing at 2 00 p. M. Eastern by Sarah Huckabee<\/a> sanders with breaking news today, sean spicer is stepping down and a new the committeead geisha strategy at the white house, and the scaramucci. We know him, washington, perhaps less so. Kevin i think theyre going to get to know him. Theres a lot of other things happening inside the beltway. Earlier today on Bloomberg Markets<\/a>, i spoke with democratic senator ron wyden, the Ranking Member<\/a> on the Senate Finance<\/a> committee we gave me his take on the growing russia probe and warned that firing the special counsel could spark a constitutional crisis. I certainly think they should. That was one of the areas i pushed for an hour agreement early on, we needed open hearings and we needed to use the subpoena power and the ability to declassify documents. Its critical that they appear. Kevin theres been some reporting from bloomberg that special counselor Robert Mueller<\/a> has decided to expand into the business dealings. The president told the New York Times<\/a> he is necessarily think that mr. Mueller should be doing that. If you fires or attempt to fire mr. Mueller, what can congress do . Im sure you dont think thats the right decision he should make. All, iden first of think the president is way off base and saying bob mueller cant get into these financial issues. They are very much linked to the work we have set out to do. Going back as far as 2008, the president s sons have said most of their portfolio was linked to russian money. We dont have the president s tax returns, we dont know any about borrowing money from the russians. I think bob mueller is very much appropriately thinking based on the news reports about these issues. Second, if the president was to fire bob mueller without cause, that would be an attack, on the democratic institutions. I think the congress has got to meet that with a very serious response. I think that congress ought to look at all available options at that point. Kevin what options would be available . Some republicans tell me there is too much conflict of interest with regards to the special product special counsel for there to be a transparent and unbiased investigation. Sen. Wyden first of all, i think if you look at bob muellers record i disagreed with them a host of policy issues, he has never been called unprofessional before. President tohe fire without cause would be met with a very negative reaction, and in the senate, i think it would be bipartisan. With respect to what you would do, certainly there would be some senators who would say that a new law has to be passed to deal with these kinds of situations. I just want to make it clear that if the president of the United States<\/a> fires bob mueller without cause, all options are on the table. Kevin lets get a policy. People looking at washington and are unsure whether or not anything kenexa get done. Its a hyper partisan time. Heres the top democrat on the Senate Finance<\/a> committee, tax reform is something republicans oft and is there any type lowering of the Corporate Tax<\/a> rate thats going to come by the end of the year or First Quarter<\/a> . Sen. Wyden first of all, this administration has indicated Mitch Mcconnell<\/a> has said the specifically, they arent looking at a bipartisan approach. The said hes going to use something called reconciliation, which is in effect, our way or the highway kind of partisan approach. Hints ofitten to cover bipartisan tax reform bills with two republican senators who have been very close to Mitch Mcconnell<\/a> over the years to greg and great coach. Weve made it very clear that we think the tax system is broken and we want to focus on the middle class, getting more money into the pockets of the middle class, those wages for middleclass folks are flat and they are driving 70 of Economic Activity<\/a> in the economy. We want the focus to be there and bipartisan. Kevin is the same thing going to happen with tax reform that happen with health care, which is essentially nothing . Because ofs done divisions within the Republican Party<\/a> and the oppositional democrats . And theres no Common Ground<\/a> can be made . Sen. Wyden i just described Common Ground<\/a>. Comprehensivell tax reform bills with senators who have been key lieutenants with Mitch Mcconnell<\/a> over the years. By the way, what is striking on the tax issue is we have seen republicans in the house not even able to agree on their budget because they have different opinions with respect to how that budget handles taxes. I want to say once again that democrats if the republicans will that aside reconciliation, this partisan only approach, we are anxious to work with our colleagues. Setting aside reconciliation, that will be adjusting. The white house releasing a set of principles so to speak with regards to nafta. Hearings and set to begin in midaugust. There a faction of the Democratic Party<\/a> that agree of withdrawing from nafta. All, then first of Campaign Rhetoric<\/a> and what is being discussed by this administration so far is very different. The president didnt like the transpacific partnership, he didnt like after, basically what he is doing is taking existing trade law and putting a new coat of paint on it. I was asked by your colleagues with respect to how this was all affected by the mexican elections, and this administration seems to say the bigfederation consideration is the timing of when the mexicans vote. Certainly working class were not told in the last campaign of real issue about trade was being considerate of the mexicans and the timing of their elections. What we were told is the focus was going to be on creating more red, white, and blue jobs, and we are not seeing that. Kevin i was my interview with the democratic senator of oregon ron wyden. Julia live shots of the White House Press<\/a> Briefing Room<\/a>, county down over the last hour. We have a briefing at 2 00 p. M. Eastern by Sarah Huckabee<\/a> sanders. For a change, not focusing necessarily on policy or rules were speculation regarding the russian probe. Today its breaking news in the Communications Department<\/a> itself sean spicer has stepped down and Anthony Scaramucci<\/a>, former principal at sky bridge is said to be taking over very shortly. We have comments from sean spicer. Kevin sean spicer just tweeted his first tweet since he announced his regular nation. Its been an honor and a privilege to serve. I will continue my service. This is bloomberg. Julia the White House Press<\/a> briefing has been filling up over the last 30 minutes or so. We are going to be getting a briefing at 2 00 p. M. Eastern time, Sarah Huckabee<\/a> sanders we assume discussing sean spicer stepping down at Anthony Scaramucci<\/a> formally set to take over. What does this mean in terms of future strategy Going Forward<\/a> . And the relationships within the white house administration, and the intrigue their . Im texting with my trump sources throughout the show, and i can tell you the original from Campaign Staffers<\/a> think this is a victory. They can this is the president saying sean spicer, you had your turn and now were going to try someone new area that said, there are a lot of business minded folks inside the beltway in washington who were big fans of sean spicer, who feel that he has a tough job, and he had to do it to the best of his ability. Busy,ctually been pretty and Sarah Huckabee<\/a> sanders is going get behind that podium just a couple of minutes and face questions about another deadline today. Julia deadline today for donald trump junior and for Paul Manafort<\/a> to decide whether or not they are going to testify next week, they have been requested by the judiciary committee. What happens if they decide not to . If they say we are not going to talk . Then we just heard from top democrat of the Senate Finance<\/a> committee and the fourth stylist democrat in the senate essentially saying the pressure is on, that they need to somehow come forward and talk about this, to clear the air. Donald trump junior has said he was to be as transparent as possible. Kevin could they just julia julia they just plead the fifth . Kevin they could. Wednesday i think is a big fed meeting. Julia who cares about the fundamentals . What about health care . Do you believe theres going to be a vote . Kevin if we can get to a vote, its very unlikely will pass. I think republicans have moved on to tax reform and they are trying to lay the groundwork for that. Julia another boring week in washington. The White House Press<\/a> briefing beginning in just a few minutes time and we will be bringing that to you. Stay with us. This is bloomberg. Julia breaking news this hour, covering the press briefing on this friday. Sean spicer has resigned. Youre watching Bloomberg Markets<\/a>. Im julia chatterley. Julie we will return to that briefing when the question segment start. This was not the only shakeup in the Trump Administration<\/a> today. Ucci was alsom higher today, set to join the Communications Team<\/a> amid intensifying litigations for the trump campaign, and it is tied to russia. We have an allstar cast to discuss all of these developments. From washington, alex len, bloomberg editor. And kevin cirilli, our washington correspondent. Kevin, you being here next to me, lets start with you. It is exciting that you are here when all of this is happening. 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