Consequences. We have to close down our government, we are building that wall. Let me be very clear the democrats in congress who oppose the border wall and stand in the way of border security. Americastting all of safety at risk. Julie here with more is keefe chief washington correspondent kerrys really and a washington reporter who are both in washington. Classic trump is back. Commentsly concerning about building that Mexican Border wall. How seriously should we be taking him . Margaret this comes against the context of summer break for what for lawbreakers for lawmakers just winding up and that having to deal with a lot of substantive issues and their midterms. Real concern on the part of lawmakers as well as officials in the white house, but a uncertainty about how much this was a real threat. Julie kevin, your thoughts here . It was classic trump and im not sure classic trump went anywhere. We all remember the response from charlottesville. I think that the bottom line is that this type of speech is going to play well where i grew up but not help him win any favors in congress. Theyve got a big legislative to do list. Passe government funding bill and im not sure that republicans and House Speaker , whether or not they are going to be able to get on board. Investors know this, main street knows this, that the president might want to blame democrats for there to be a wallop funded and the government funding bill, but really it is the war between the ultraconservatives and the moderate republicans that has stood in his way, not only on health care, but also on tax reform. Julie he lumped both in there. Just moments before his art of speaking, we had that New York Times article suggesting the level of tension we have seen out of the open between Senate Majority leader Mitch Mcconnell and President Trump, just how much of an impact is that kind of level of tension going to have on connecting the kind of policy kevin was talking about . Margaret it is a great question and may not have much impact in the end. If senate and house lawmakers are able to work effectively with the Vice President , which has been a productive path so far and the white house staff, including john kelly, but where the rubber does meet the road is in this question of how much of a political fight inside the Republican PartyPresident Trump actually wants to have. There are some people the president talks to thinks it is a good idea and say have primary fights and force primary elections and others who think that is not the most productive path and could actually imperil all republicans. The president has to do some tackle this, here himself do some calculus, himself. Seemsaders, the path clear, to continue working through productive paths like the new chief of staff. The wildcard is the president. Julie kevin, whose responsibility is it to fix this . Is it Mitch Mcconnell responsibility to say i have to pull everybody together or is it President Trump to offer some kind of all of branch olive branch . Kevin it is not just Senate Majority leader Mitch Mcconnell who is not spoken speaking to house majority, leader paul ryan has also not speak spoken to him. They are all giving each other the silent treatment. It does start with the president , just like in the business, it would start at the ceo level. President trump has been criticized within the republican asty, all for not being handson as previous administrations have been. That said, i spoke to the Treasury Department and a Spokesman SaysSteven Mnuchin is definitely trying to correct course from the mistakes made on health care, on tax reform. You start to get in between the lines little bit and you will notice that the agency heads as well as the Department Heads and cabinet level officials are speaking a very different tone on policy than the president himself. You saw this last night in phoenix, when President Trump threatened once again to withdraw from nafta. No one is talking about the United States withdrawing from nafta. Those negotiations are still expected to wrap up in the early half of next year. Julie fiery comments from President Trump, suggesting he would rather cancel this then renegotiate. We go back to the idea that he is playing to his base once again. The other thing i want to bring up is the comments he made about charlottesville. But was he trying to achieve by rehashing the events of charlottesville and his response . It was an edited version. Is, it created a lot of concern about the comments he made. Margaret it seems to bother him immensely that his handling of the charlottesville tragedy and those initial hours, you heard his words spoke for themselves. It gets under his skin to know that his reaction was read as being racially insensitive or throwing bait to white supremacist elements in society. His instinct is to go back over to explain in more favorable terms what he was trying to do while leaving out some of those key passages were the ones key passages that were the ones that got him in the hot water. In one sense, it is to tell folks blame the media, they are the ones who are trying to revise history. If you read it in the broader sense, it is raising a number of questions on capitol hill and inside the white house about whether he is able to let this go and move on. This is not been a particularly unifying or proud moment for the Republican Party or this white house. There are a lot of folks who want the president to succeed or at least stop shooting himself in the foot. Julie kevin, i can see you nodding. Kevin the charlottesville response was that for the country. A bigoted intolerant speech has to be announced across the board. It is why you saw Top Republicans distancing themselves from it and frankly, it is why senator Susan Collins said she cannot even guarantee the President Trump will be the republican nominee in 2020. Julie he certainly feels he is being misjudged and the public and the gop just wants to talk about tax. Get a check on where markets stand with abigail doolittle. We are looking at small the clients for the major averages on the session. The dow, the s p and the nasdaq are all lower by about 1 . This follows a big rally or we have been seeing some up and down trading where we have been seeing some upanddown trading. Investors still trying to digest those comments from President Trump. This is the story on the month. This is a monthly chart of the dow. It has been moving up and down, over all about flat. We are seeing lower highs. That is bearish and may suggest there could be more bearish action ahead. If we hop into the bloomberg, the dow is a bit of a anomaly. Nasdaq and the s p 500, represented in yellow, on pace for their biggest monthly decline of the year since last october, going all the way back here. The dow in blue, must much lower to climb. Weakness in both tech and biotech. Rounding it out with a black eye on the day for small cap, look at lazboy. Down 19 after the company missed firstquarter fiscal Quarter Sales and earnings estimates. The fifth consecutive lackluster quarter in a row. Thank you, so much. Coming up, more insight on the outlook for President Donald Trump 60 agenda from larry sabato, from the university of virginia. Julie this is Bloomberg Markets the trump economy. Lets get a check on the first word news with mark crumpton. Mark the stock market has done well since trump got elected, but his top investors, not so much. The s p 500 is up almost 15 . The president s three wealthiest combineds are worth a 72 billion. The president s Emergency Management director is pushing for an overhaul of disaster relief. The fema chief tells bloomberg that states, cities and homeowners should bear moral the cost. He says taxpayers should be on the hook for homes that keep flooding. German chancellor Angela Merkel says she understands the support in the United States for the America First attitude that help get President Trump elected, but says she believes it will only hurt the country in the end. Speaking at a forum organized by a german newspaper, chancellor merkel said many in the u. S. Say globalization as a situation where one country profits at the expense of others but she but she says her view is one where everyone can win. Russian president Vladimir Putin met with a vatican official. Values what he calls a trustful and constructive dialogue with the vatican. The meeting follows his talk yesterday with Russian Foreign minister sergey lavrov, urging russia to use its close ties in venezuela to ease the ties to ease tensions there. Global news 24 hours a day in over 120 countries. This is bloomberg. Trump lets turn to the agenda following his rally in phoenix, last night. Larry sabato, director of the center of politics at the university of virginia, tweeting President Trump cannot admit error, brides incessantly and his cult cheers rags insist brags incessantly and his cult cheers. His now fromns us charlottesville. I appreciate this is a sensitive and emotive subject considering where you are from. I just wonder what you made of his comments. The crowd was laughing up his words. Do you think he made a mistake in rehashing ground where charlottesville is concerned . Margaret yes larry yes. Remember that he could read the telephone book and they would scream and applaud. These are the top people who believe anything he says and will disregard whatever facts exist to contradict whatever he said and he did misrepresent so many Different Things in that rant of his. As forest charlottesville is concerned, of course we are sensitive about what happened. Donald trump cannot leave well enough alone. He just keeps digging when you are supposed to stop digging if you are in a whole. He cant leave it alone because he knows it is a major problem. He knows he created it for toself and he is determined blame it on somebody else and last night, it was the news media and his adoring fans bought it and applauded and will continue to do so. Julie what can donald trump possibly do that will make these people go we take exception to what he has done . Larry that is a great question. Im not sure. I think for the real core of the trump backers, he can do absolutely nothing. He could ask them to do anything, go anywhere and they would follow. However, he got 46 of the vote. His core is somewhere between 30 and 35 . Not all of them are cult members, but they are his core. What about that additional 11 that voted for him . They were republicans by embarrassed him embarrassed by him but did not much like him. They voted for him because they did not want Hillary Clinton to become president. Those are the people who are peeling off. Julie he also mentioned the wall, last night. It is clearly a sensitive subject. He says if we have to close down the government, we are building that wall. How seriously should we take him . Larry a lot of it was playing to the audience. How many times has he said no and these on x or y next day he compromises. This is a president who changes his mind frequently and does not acknowledge changing his mind. Knows, what are the odds he will insist on this . I find it hard to believe he will shut down the government or permit the government to shut down as he does not get the money he wants because i dont think he is going to get it. If you if he is seen as the cause of the government shutting down, i think he will pay at least a bigger price as the congress will. Julie what about congress . What about rumors of the tensions we have seen with President Donald Trump between Mitch Mcconnell as well . How do they fix their relationship and how do you think that impacts their ability to enact policy like tax reform . Larry it is a business relationship and this one is fraying. I like to say in the beginning, it was a decent arranged marriage and now we are starting to see rocky miss, but they are not yet at the attorney handling the divorce. They are not at the office, yet. It can come by together. Mitch mcconnell is a committed conservative from kentucky. He has supported many of the things trump ran on. He is going to continue to work toward that agenda because it is a conservative agenda. He does not like he is not have to like donald trump he does not have to like donald trump. He does not have to spend free time with donald trump, but he does have to work on his agenda. I dont know how seriously to take this. The leadership in congress has been willing to criticize trump, mainly privately, occasionally publicly but then they go right back and vote for whatever he wants. Julie larry, great to get your insight. Larry sabato, director of the center for politics at the university of virginia. Up next, we are waiting for comments from paul ryan in oregon. This is bloomberg. Vonnie this is Bloomberg Markets julie this is Bloomberg Markets the trump economy. House Speaker Paul Ryan paul ryan just putting to speak in oregon. Lets listen in. Worse is ifhat is we are successful like intel clearly is, in being a Global Company and making money by selling goods and services overseas, they can bring those profits back into this country and reinvest it in jobs and manufacturing in america for many reasons but chief among them because of our tax code. We have 3 trillion of american profits arced oversees the cannot come back because of our tax laws. We have to get these tax rates down. The average tax rate on countries in the world is 2. 5 . When we are taxing american businesses 35 , that makes us very uncompetitive. If we get our tax rates down on all of our businesses, then we can be far more globally competitive and we can make it make more sense to keep our Companies Based in america. That means headquarter stay here. When headquarters stay here, the attachment to the Community Stays here. The boys and girls club gets more funding. United way and local churches and Charities Get more Community Support like you do in portland. There are lots of reasons why we want to make sure that American Companies stay in america but we want them to be able to make things here and export them all around the world. One of the things we all sought to do is create incentives for businesses to expand more plant and equipment. You spend 10 billion a year on Capital Equipment building these factories. Do you spend 12. 7 million a year on r d. Important think it is that more of that occurs in this country so that we can make things here and export them all around the world. That is what we are trying to achieve when we talk about tax reform. Under the thing is fairness. As people and families and workers, we dont really have a system that is fair. One of the reasons is it is we do leak obligated. You can sit next to your nextdoor neighbor, have the same income and pager medically different taxes because of all the different loopholes and carveouts in the tax code upwant to clean this thing to make it simple and fair. Condense all these redundant loopholes. Get rid of a lot of these bizarre special special interest carveouts and lower peoples tax rates. The philosophy in the tax code in washington today is send your money to washington and limit if we approve, we will that you get some of it back. It is actually kind of condescending. We want to clean this up, simplify it so you can fill out your taxes on a postcard. You dont have to hire an accountant to do your taxes. How many of you sort of dread april 15 because you dont really know what to expect . This should not be a dreaded thing. The should be something where you know what is going to happen and it is simple and predictable and fair. For families, workers and businesses, that is going to be important. The last part i would say is this. We have not had growth in this economy near what we used to have since before this great last recession in 2008. In the old days, like 10 years ago, our trend growth rate was 3 plus. We have an growing between 1 and 2 in this economy. Much. Oes not sound like it is massive. It is in or miss. It is enormous. If we can get our economy growing at 3 plus, that means workers have more takehome pay. That means we have a higher standard of limit of living. That means we are creating more jobs. That means there is more confidence in our economy. Build more, do more. That means the next Disruptive Technology that is right around the corner, maybe in someones garage is more likely to occur and get funded. That is why we want to have faster Economic Growth. What it does is it raises wages and increases takehome pay. All, it gets our economy growing and healthier. We think that in order to have a healthier economy, where people can have good paying jobs where we can keep businesses in america and make more things. Where people up and down can have good paying jobs, we have to have tax reform. That is one of the biggest achievemen