Transcripts For BLOOMBERG Whatd You Miss 20170608

Director leaking communication with the president. Entitled totrump is loyalty from those serving the administration. Kasowitz said the president told comey i need loyalty, expect loyalty. In the u. K. Voting is under way in the second eligible election years. A total 650 members of parliament will be elected. Almost 47 Million People are registered to vote. Tune in for bloomberg tv one at 5 00 p. M. Today new york time. Well have instant analysis of polls in the exit u. K. Are published. Said more thans infectedople have been an outbreak. Health officials claim the on the 2yearold Saudi Campaign against rebels. Bloombergive from headquarters in new york. Joe were 30 minutes from the u. S. Ng trading here in scarlet u. S. Stocks trading mix of super thursday. You question is what did miss. Scarlet james comey said President Trump lied about his firing. The administration then chose to defame me and more importantly the fbi. By saying that the organization in disarray. That it was poorly led. That the workforce had lost in its leader. Ande were lies plain simple. Scarlet wasting no time, attorney markal kasowitz said the president comey. Pressuring the president feels completely vindicated and is eager to moving forward with his agenda and business of this public cloud removed. Scarlet the day is far from votein the house moves to on a bill that could overhaul doddfrank this afternoon. Well take you live to capitol hill this hour. Julia first lets take a look where the major averages stand. Standing abigail is by. Considering today was super thursday. The comey testimony and the u. K. Election, not a lot happening stocks here in the u. S. Were looking at small moves once again, i say small because 500 this week everyday has closed down less down or up, times onethree percent. A fraction. Wn just the nasdaq holding on to aboutly bigger gain, up. 3 of one percent. The dow and nasdaq put in all time highs. A look at the russell 2000. Points away from potentially closing record high. Stay tuned there. Some of the out performance for russell 2000 is coming from the chip sector. The stocks up 1. 5 . The biggest waiting for the up 3. 7 now, upwards fourth day in a row. That time trade. He thinks this has to do with things. Ship in new apple products. Hes taking a ton of calls from relative to currency and whether or not this could be positive. Not entirely clear now. Helping they this stocks. We have Texas Instruments higher. There. Ves helping to explain or story in the day, the financials we do have the financial trading higher have been helping the major averages trade higher earlier. Those gains just a little bit. America, j. P. Morgan, citigroup and Morgan Stanley outperforming. Banking index having its best day since april 24th. J. P. Morgan big news today. The fact that coo matt zames is after 13 years with the bank. Havent had much of an effect. Does really have potential successor for jaime dimon the ceo. Did certainly make some headlines there. Julia thanks. Fired fbiu miss . , james comey took center stage at Senate Intelligence hearing. One question is whether any of the communications he had with amounted tot obstruction of justice. Reluctant to express opinion on this key question. Do you think donald trump with russia . Its a question i dont think i should answer in an open setting as i said, when i left, we did not have an investigation on President Trump. Thats a question that will be answered by the investigation i think. Julia more highlights. Cirilli. Ng in kevin so many more questions. Things for me, what came out of the statements from Mark Kasowitz. Trumps personal attorney. When he said look, what was that thed here was president is not under investigation in connection with the russian elections. Said theres no evidence that what that a single vote changed russianult of interference. That cuts to the core what we here. To investigate remarkable day here on capitol hill. The former fbi director the first time publicly since President Trump fired him. Now according to the republicans im talking, no questions about russias involvement into the president ial election. The question though, divided ism a political standpoint whether or not President Trump obstructed justice. Some of the Top Republican who criticized President Trump heavily by senator john mccain marcondsay graham and rubio all defended this president. Folks, saying there wasnt no obstruction of justice. Senator rubioth to ask him about what the president can do to respond to interference in the election. I dont think its a question of fear. Question of how. To the extent that interference involved interaction with americans, i think president will be interested in some of those americans who were his campaign. Comeying to the director the president believed there was thislite associated with campaign. Senator Lindsay Graham has a that increase sanctions against russia. That is due for considerations. Approve bid the Senate Banking committee. I spoke with a chairman yesterday, this comes on the day removee house expected the bill that repeal parts of doddfrank. Going to be able to take up any of those legislative first they deal with russia. Joe Kevin Cirilli feating day in fascinating day. Whatd you miss . , going to the of defaults on treasuries has become routine as congress squabbles over federal finances. Bloomberg intelligence analysis suggest the government will if the debtoctober ceiling isnt raised. Is bloombergw Intelligence Analyst ira jersey. Thank you very much for joining us. This thing every custom years. No one really thinks were going to default. As we get closer, you do start to see some reactions or some anxiety build in the short term end of the market on fears that could happen. Thats right. It takes between two and three date. Before the drop dead best guess is early october. That being stated, theres a lot that go into that date. We get really close end of august. Thats something actually thats officials have been talking about. We get too close to for comfort. Wants why they really congress to act in july. Scarlet how important in the were seeing here between mulvaney and steve mnuchin. The day thatsf a political decision. Buy u. S. E who government security, the safest securities in the world uses benchmark for every dead everywhere on our planet. Aey would like this to see permanent suspension. Makes a budget and that budgets has a deficit. Its a spending issue and revenue issue. Its not whether or not we debt. Pay our keep having. Ent we scarlet until they make a decision on that, its a well. Ising issue as how does the government prepare for this in terms of what kind they do make available to investors . One of the things thats likely to happen, shorter and shorter maturity t bills. Normally they issue lot of six bills. Ills and one year theyll issue one month bill. Bill. One or two week right up to october date. Joe you said the word armageddon. When we think of bad things happening in the world, you treasury. The knee jerk move is to buy treasuries. When the treasury market itself is the source of anxiety. Thats one of these unknowns. Nobody really knows about. Default,em with the once we default and dont make a payment, we coupon cant take that back. Will people believe that the truly a soundt is investment. If not, you wind up going to germany or other places in the world. Even with zero or negative interest rates. Scarlet i want to go back to t votes. If were looking to issue short do toills, what does that the demand picture. What have we seen in the past . We hitt the first time up against the debt ceiling. When you get within a couple ceiling,of the debt you see a dramatic rise in yield. When this happened in 2011, were zero. Tes they rose from zero to 25 bases points. A lot. Oesnt sound like thats a fed hike. It happened in short term. It happened. This particular chart shows the last three times that this happened. You saw very dramatic in telling bills. Es in t you cant expect. Everyone hopes well get it done hand. Joe i have to wonder if people sell t bills. The knee jerk move. Bloomberg intelligence ira jersey. For coming on. Julia were getting headlines the bloomberg. Trump has been speak ing at the white house with governors and mayors about his infrastructure fund. This is infrastructure week. Hes saying that infrastructure will take off like a rocket ship. Of course, hes speaking at this event. Recordingg to have a very shortly of the comments he made after that meeting. Bring you that as soon as we get it. Scarlet coming up, meg whitman has wok bloomberg she to do. Julia meg whitman saying the company is facing a cloud. Isexplained how the company reexamining strange and partnership. Emily chang. With see the way we see world is around i. T. What do you want locked down in data center untouched by your only employees. Privateht you want in a cloud with public cloud economics. Managedld you want in service. Were seeing for reasons of security, control that people are beginning to say, i wonder if i had gone too far and put in workloads into the public cloud and they want to bring workloads back to print. That mean for hpe . Whatseans we have to do in our customers best interest. Their best interest is around creating a multicloud environment, a hybrid i. T. They can bewhere the right landing spot for their application and workload. Dont end upthey lock. Endor we want to give customers cloys choice. Theres been some questions Cloud Partnership with microsoft. How is that going . Its going well. It really is going well. Done a lot of business with microsoft for many years. Our public cloud partner. When we work with a customer, these are the workloads i like to have in the public cloud. We say, you know what, its a opportunity. Lic if you want cloud functionality, stack. The i think microsoft got a very strategy and were great partners with them. Its about giving customers choice. Where do they want their workload and data. Public nt a if they start making some of their own data center equipment, hpe . Does that mean for well, this is a dynamic industry. Its interesting. For a long time, infrastructure wasnt in fashion. We see all kinds of people getting into the infrastructure business. Thats what microsoft does, toll try to figure out how have a relationship around cooperation. Work figure out how to with them. Lot. Mire the company a tech stock has been on a tear election. What are the Market Dynamics that you see helping or hurting hpe . Its a challenging Global Environment right now. Countries that are doing very well. Theres uncertainty in a number of countries. Forrtainty is not good business. Our strongest market in europe is germany. Germany is doing incredibly well. Done a lot of business in germany. The u. K. Is challenged. Is countytor spending down. People investing in u. K. Are holding back because of brexit. What will happen here. Maybe i should take a little time to think it through. Japan actually is pretty strong us now. Australia is coming back. Latin america is doing very well. Continues to be uneven. Sometimes one quarter strong and we see weakness. Mixed environment. Everye to make it work in environment. We sell as hard as we can and as much choice. Youve led several different high Profile Technology companies. Im curious what you think about the unicorn start ups. What do you see them doing well. You do you see them doing poorly . Listen, the startup scene in silicone valley and elsewhere its live and well. Its a renaissance of innovation. Think about what youre seeing. Theres a very innovative companies. The ability ofs Venture Capital money to keep funding, were starting to see a pull back there. One of the reasons that we were be buy simpl they needed to in we think there will be unicorns and new companies. Think it does present an opportunity for us as we think strategy and innovation strategy. Hpe is heavily investing what machine or your vision for the future of computing. How will this help customers in and how is that vision evolving . Challenges areig industry faces is the demand to build data centers, demand for space and the demand for energy is insustainable. We work in parts of the world is no more energy on the grid. Years ago a number of to seek through the fundamental model of commutes. Cpu centric model. We turn that on its head and a Memory Center compute and copper wire data. Smaller space,n far more energy efficiency. With theer pleased progress of the machine. Embedding parts of the technology into our next servers and storage. Were super excited about the amount of data that can be with very low power, a small forumd in sector. Its on track. About it. Ted julia that was meg whitman ceo of hewlett packard. Coming up political fallenity in europe has radar. Well show you this evolving next. C. Scarlet european stocks have been benefits from a rotation out of the United States. Stocks have now gained a yield advantage as well. We know weve been talking about these lower bond yields across the euro zone. What this chart is showing a the euro stock, the dividend yield and the yield. Ese when we see the green part, that stockses european dividend yield climbing back above portuguese ten year yield. It has the highest yield among euro area. Earlier in the year, the stocks have lost yield advantage. See now how its come back into the green. Once again, another reason that piling intoe european stocks now. Joe very popular theme weve show. Many times on this julia as long as youre specific about what stocks youre talking about. Its interesting to look at what there. D particularly youre looking at the yield curve. You looking at the fatness of the curve. Curve narrowness its been thatve months heading into ecb meeting. Thats going to be okay bondholders. Not so great if youre talking about the banks. When youre talking about europe. Ng curves in you can see what this chart is showing, you got two ten spread there in blue. Financials index in white. Theyve tracked each other closely. Flatter curve, not so great for banks. Is, of course,on what did you miss. The question is, at what point we see more acceleration of rate hikes in the u. S. Rate tore waiting for growth. In the euro area its the same thing. From Bloomberg Intelligence euro area earnings, subdued. Very nowhere near the peak that we have seen precrisis. Reminder, this is a global phenomenon. U. S. Thatctors in the mediocre wage growth. Europe, theyre not to where they were in 2011. Barely where they were in 2013. Another reason that mario is not going to be under much pressure time soon. Te any isia its part time work going to workforce rather than full time. Which is suppressing wages. Closed here in the United States is next. Take a look at the major indexes. Four minutes to go before the close. Youre looking any moves in the dow and s p 500. Big movers today. Scarlet not that closing at a new record high. The s p and dow barely super thursday. Testimony. Omey joe if youre tuning in live on twitter. Welcome you. Scarlet we begin with our minutes. Nasdaq climbing to another record high. Dow and s p closing in the green. Hose are barely gains another day another gain. People just dont Pay Attention politics. Joe lots of news. Not much mark reactions. Sort of familiar pattern. Scarlet market was in bond yield. Those looked higher. That was good enough to push up the financial. Looking at group bank returns on the s p 500, financials up by better than one . 1. 2 . Win you go within that sector, theres 65 Financial Companies in the s p 500, 60 of them gained and only five of them declined. That give you a sense of really how broad this advance was within this sector. Shares which have been on fire helping to power the nasdaq. Climbing by a third of one percent. We should mention as well, there are a lot of individual names including a bit, nordstrom. Best dates since may of 2014. Family is considering taking it private. Trouble across retail is one reason why. Nordstrom has been struggling foot traffic. G high. A is trading record after forecasting sales growth, that topped every analyst estimate. Defying expectations that growth ist go down because china kind of consolidating at 6. 5 growth. Nvidia record high for 7. 3 . The highest. Down threes almost percent on a downgrade. Lowering the price target there a share. Joe and in government bonds, ofrlet mentioning that a lot the action in higher yield, you see it there in the ten year u. S. Yield. Of bounce back there. Still very low by the standards of this year. Big movers, japanese yields moving uprising eventuallyabout how might unwindapan monetary policy. This is debate happening around the world. Inay, that was most manifest japanese tenure. Scarlet six bases points. Market. N huge. We love it. Land. Cy julia dollar index. Folks today on the euro dollar ecb just being slightly lower. 2019. Ion forecast out to trading 129, 44. U. K. Voting in the general election today. Do expect the first poll readings to come out after today. M. Eastern time i wanted to give you a quick ink whats going on commodity land. Because we saw oil higher early the session. Points here ines wti crude. Look atally here is a commodities. Not a lot of action in the normal ones. Bit. Own a little wheat a gainer. Possible heavy range in threatening up to hectors. Metals having a good day. Copper nearly 2. 5 . Julia some of the biggest names in Money Management told us how they feel about the current environment. Start buying low and selling high. Crossing yourd fin fingers. Its a market where you will susceptible to bad news. Even small doses of bad news. Complacency is pretty scary. See even the evaluations of markets as a whole are the stock in the bond markets somewhere in the 90 percentile. Not cool. Probably didnt miss James Comey Testimony, which seem to everyone was talking about today. Other events on this so called super thursday. Decision, the u. K. General election, which will legally be able to cover the 5 00 p. M. To talk about all of this now, editor ofexecutive inbal economics dan moss and san francisco, Investment Officer of merck investment. To start with you. Not much interest in Financial Markets. It depends on where you are. Moving. G is always lets start with the ecb. Lot of expectations going into it. Profit taking there after. For today, hes succeeded. I doubt hell succeeded in media term. It does suggest that trumps agenda is being stalled left and right. What that means hell ruled more by executive order. Did. Like what obama the implication of that is, people are not going to make long term investments. Reasons why real rates are not higher. In broad stroke. Scarlet what you do make start ofis is normalization. [indiscernible] necessarily have the committee with him. Joe referred earlier to a debate in the ecb. Thats true the debate is happening. Dont let that thate obscure directionally. Way. Really only going one he did recalculate that. Ourearned in japan through reporting that within the boj, there are some deliberations recalibrate the way they talk about the exit. Different, theis conditions are different. Directionally, were probably closer to going the same way major Central Banks. Rlet axel another way looking at it. Itsfed might be near end of hiking cycle. I say that, if you look at the in fund future, pricing about two rate hikes by end of the year. Maybe 2. 5. Three. Whereas in the euro zone, we learned they will not lower rates. Tapering. Is clearlyre improving and the next step would have to be. Apering term edium [indiscernible] he talked about tapering for happened. Re it the dollar rallied. One of the reason the dollar is weak its not that things are u. S. , its so much in. Been priced [indiscernible] wonder to what extent will the fed feel compel to on risk. Along given that Consumer Spending slowed down and the inflation on isnt there . I happen to think the fed is hostage of the market. This year, the market delivered silver platter. Now it wants to continue through. Here. S a calendar event yellen will retire. Just like bar nar key wanted to result, the thing happened that happens. The central bank, the fed in into slowinghiking economy. I dont think anything will stop it. Dependent. O be data they arent going to notice it until theyre way into a cyclical down trend. Joe look at 2015 and 2016. Way ahead of the fed in terms of what they will do. In this year redicting between two and three three. They are pushing through their for unemployment poised to theyre not going to boast it, poised to push through what most people consider to be definitions of full employment. I wish the conversation wasnt glass half empty. Lets give the fed some credit weve been andre compared where the other major Central Banks are. I wouldnt completely rule out the yellen exit. President s have this habit of reappointing people first by predecessors. Reagan thought about graduating it. Of volcker, he didnt do reappointed greenspan. Obama reappointed bernanke. Not sure im convinced. Uniformtheres less sentiment about this. Joe i want to wrap up here with you. You mentioned the fed possibly an economymuch into that doesnt necessarily justify. What does it mean for their trading environment if were seeing this. Shiftial bit of regime here. Weve seen a yield curve. That. Continue to see it means theyll sell off part of their balance sheet. Taking miniature steps. Tighterhat means financial conditions. All of this all these things work in theory and the fed folks can talk about all the time. Will tell youcial that theyre not going to change the path if the mark tumbles. That happens when the gaps areds also, the widening and financial deteriorating. That means the fed will react to. The Financial Market will take stop whatever and the fed is planning in their tracks. Joe thank you very much to both you. Executive dan moss and merck. Julia coming up, the house could start voting on doddfrank. Latest next. E mark former fbi director james comey gave his long awaited today. Ny on capitol hill to shed light on his talks and meetings with President Trump in just previous to his firing. Three days after mr. Trump dismissed mr. Comey, the president tweeted that comey should hope there are no tapes conversations. Comey this to this say in response. I was so stunned by the itversation that i just took in. The only think i can think to mind, ias playing in my got to remember every word he said. Its playing in my mind, what response be. Ive seen the tweet about tapes. Hope there are tapes. I remember saying, i agree hes guy. D as way of saying, im not agreeing what you just asked me do. Mark mr. Comey referring good formererence to the National Security michael flynn. He said theres no doubt that interfere into last falls u. S. President ial election. The president s personal says he never directed comey to stop investigating anyone. Includes michael flynn. Speaking today response to comeys capitol hill testimony kasowitz accused the former fbi director of leaking Privileged Communications with the president and said that the expectnt is entitled to loyalty from those serving the administration. He also said the president never mr. Comey, i need loyalty, i expect loyalty as comey has claimed mr. Comey was meeting the Senate Intelligence committee, President Trump was giving testimony of a different sort. During the speech in washington, the president said he and his supporters are under siege. The interest and failed voices in washington will do power to try their from this righteous cause. To try to stop all of you. They will lie, they will they will spread their prejudice. Their mark federal grand jury has indicted a woman accused of toking classify documents news organization. Relate winner was arrested at in augusta,the fbi georgia. The fbi said winner was working as a Government Contractor last month when she copied a classified Intelligence Report containing top secret information and mailed it to a reporter. The charge against winner carries a potential prison sentence up to 10 years behind bars. Julia now for more lets head back to capitol hill with sahil kapur. War here iser the alleged russian interference with the u. S. Election. Battle today was about trump versus comey. Who won that battle according to talking toyoure there . Theres no clear winner. There was a political back and there if you want to talk about the politics. Quotes. Ead you two one from senator ron widen a democrat. I believe evidence keeps piling up theres been real president ial abuse of power. Lindsay graham republican from South Carolina that the he said, being crude, rude and bold is a would get the death penalty. Its not. That is a political state of affairs. Of serious stuff questioning about the president did tell former fbi director doors including questions of whether he asked he triedty, whether squelch the investigation into michael flynn. Investigators will be looking at that. Partisan split in the reactions, makes important point. The law or whats criminal or not. It really is about politics and go the two sides want to from here. Thats right. Theres no comey testified has notresident trump personally under investigation, evidence of direct collusion between him and russian government. That, thato know removes the issue at least for the moment, if evidence comes up its ae legal arena, political question. The idea what he did wrong, the chatter about impeachment coming democrats. Thats a political question. Congress has to decide if what to level of high crimes and misdemeanors. I think that debate will continue. Are not quite ready to go there yet. Theres a trickle of suggestions. Much. T thank you so fired fbi director James Comey Testimony not outen thing on the agenda. The house voting on a doddfrank currently under way. Are hr10 is what they voting on. Elizabeth dex heimer. Theres a big question pass theher this can senate. This is expected to pass any now. E the house, largely a eparty line vote. Few if any democrats will vote for this. That is a challenge in that the senate. Before the republican majority much slimmer to pass legislation need some democratic support for most bills. Battle. Face uphill with that said, this is a big house. E big step in a fight that lawmakers have been fighting here to overhaul a lot put inrules that were place stemming from the financial crisis. Bethe senate, its going to micro vote. The Senate Banking committee up. Rman will be taking this hes writing his own legislation. He hopes to include or to consider the choice act. He said he wants to work with that. Ats on which significantly changes what likely to gond somewhere. ,carlet parts the choice act banks dont like all of the different changes. What do they know about wall street support or lobbying efforts when it comes to whats theg to be put in front of senate . Youre right. There are a number of things in streetll that wall wouldnt exactly pick if they could choose. Primarily, the core, central component of the bill would of banks only if they met certain requirements, to raiseld force them more capital. Which is something biggest u. S. Them. Is not appealing to there are a number of things in this bill that they are not particularly keen on. Are other issues. Like repealing the volcker rule or making changes on the volcker rule. That is something wall street. Ould like to see julia you mentioned the limits risk taking, obviously politically sensitive. Its important the too big to fail. Large Financial Institutions that get into trouble. How likely are we to see amendments pass the senate on those two things . Sure. Yous take the last one that mentioned. Somethingn, which is that republicans has called a did not end too big to fail. It would allow Bank Regulators to step and unwind institutions. That is something that could technically could go through a budget process that doesnt require democratic support. That is something that does have legs. Republicansng that in the senate as well as the white house have expressed support for. The volcker rule ban, the other something full repeal of the rule that is seen not likely. Bipartisanme discussion on both house and senate around making other minor tweaks. Remains to be seen. I think any significant overhaul uphill battle. Dexheimer,izabeth thank you so much. You can see the house voting is now. Way talking about different amendments, theyre talking hr10. Passage of which is the doddfrank roll back bill. Scarlet j. P. Morgan matt zames who once viewed potential jaime dimon has decided to leave the bank after 13 years. Otherlows on the heels Senior Executives who left j. P. Organ in recent years people are wondering whats at j. P. Morgan or maybe there are better prospects. Some of the points their theres aether or not ceiling. Its quite tough to deal with. Julia were looking at the the members. Ed some of the senior management. How many women actually were here. Ed just to give you a look. These people general counsel. We dont necessarily have to tie the dots here. Just in defense this guy to deal with. Certainly promoting women at the bank. Level of the scarlet we spoke to an analyst who suggested that if you had to next ceo of j. P. Morgan maybe a woman. Jaime dimon has been very active promoting women to senior ranks. The evidence is right there under the management committee. Can see it there. News,e have some breaking scurchi, said to be the oceb. Ssador to be back. Mark its time now for first news. Director james comey made his much anticipated appearance on capitol hill today. The senatebefore Intelligence Committee on talks and meetings he weld with daysdent trump in the before he was fired. Mr. Comey discussed his concern about the president s desire for to drop the investigation into former National Security advisor michael flynn. The president got what he asked of you,t he what would have been the effect the investigation . We would have closed any investigation of general flynn in connection with his statements and encounter with ofsians in that late part december. We would have dropped and open criminal investigation. Byk mr. Comey questioned oregon democratic senator. Comey told the Intelligence Committee he took details notes of his conversations with the president because he honestly felt the president would lie thet the nature of meetings. Mr. Trumps personal attorney said he never directed comey to stop investigating anyone. That includes michael flynn. Speaking today in response to comeys testimony, Mark Kasowitz the director of leaking Privileged Communications with the president and said trump is entitled to expect loyalty from those serving the administration. To close in the u. K. And the second gent election. The total of 650 members of parliament will be elected. Almost 47 Million People are registered to vote. Tune in for bloomberg tv one hour special today at 5 00 p. M. York time. Well have instant analysis of the market as exit polls in the published. Venezuela chief prosecutor today citizens to reject nicholas ma duras push to rewrite the constitution. Calls furthered deep the the government. Protests across venezuela continued today. Was killed more than 190 other people were injured. Joe now lets get a recap of action. Market further in the green. Thats a new record for the nasdaq. Ton of action in headline. Food andarmaceutical, Drug Administration requesting remove opioidsy pain me medication due to risk related to abuse. The benefit for the drug may no risks. Outweigh its they will take steps to require. He removal that stock down double digits. Time that therst fda taken steps remove a marketed opioid pain related to abuse. Bit of breaking news, still going on to pass repeal of doddfrank. Well continue to watch those votes. Scarlet in light of flipping earnings,isappointing family behind nordstrom is deciding whether to take the chain private. Sent nordstrom shares up 18 . Opening bell. The for more, lets bring in poonam retail analyst. Nordstrom is kind of suffering same way that all Department Store chains are. Doing as rack line not well as it used to. Online sales are a concern. Theres cheaper alternatives. Having said that, nordstrom better than its peers. Retail is in a period of change. A period of massive change. The question is, do they want to recorder ofvestors, every month and everyday, do they want to take the battle in hand and transform the business. Thing about nordstrom, mac have less stores than macys. They can take the battle on own hand. Scarlet just to prove that point here, we have bloomberg locations. Rom the yellow circles are nordstrom locations. Everything else is kohls you can see that nordstrom is limited. I get your point when you say it might be easy to do it behind closed doors. It doesnt help you address the cultural, the technological shifts going on. Work against the Department Store model. Particularly if you settled yourself with a load of debt in it. R to do youre right. Top line is the biggest challenge. Fix. S not an easy they dontrdstrom, have an answer. You talk to any of them, what is people back toet the stores. Its not about product. Everyone focused on product. Everywhere. Product you can find it online and theres no loyalty. Be a better store experience. Scarlet what do they say . Model thatsr wrong here. The model is broken. They dont think its broken. Disturbed. Its they dont think its broken. To. Who you go joe we want to cut in quickly and take a look at the house floor where their voting repeal doddfrank. Ack of you can see there, they do have the votes to it go through. 232186 on a Virtual Party line bases. Voted against it. There you go. Of course, theres high hurdle the senate. Key passage there in the house. Is bloomberg. This. Joe we want to take you back to the house floor where they doddfrank. Back to this is a significant legislative move from the house to roll back which was one of obamas main accomplishments. This doesnt mean anything yet. Elizabething to dexheimer earlier. Theres a high hurdle in the senate. Theres pieces of the rollback budgetuld do through reconciliation. Full roll back maybe difficult senate. The house does pass this back. Ul of roll statue thi scarlet this is the easy part. The house. Past now they got to get it past the senate. They probably need democratic support. You have a big question, do the Senate Democrats actually have want toareas they address. Or they will be obstructionist. Like all theoesnt parts of this financial choice hr10. Theyre concerned about the part requires bank to raise hundreds of billions in new capital. Ofy have to raise a lot money. Its hampering their abilities do much. Julia when you got banks with capital. Evel of how much degree on the amount of take. Hey can the other one is what happens in trouble. In it was politically toxic in to fail. Too big you can assume with democrat minimal support. Can i make the point and go, a big thing about tax reforms and repeal healthcare. Obamacare. This is falling under the radar. Significant. Another piece of potential legislation through the house here. Ce joe it speaks to the point that most people dont care. When its taxes and healthcare, real under the legislation. Something like this very abstract to most people. Them toot easier for pass Something Like this. Banks would argue restrictions with the amount of out. Al they can push s. Ere are implication washington to go to our chief washington correspondent Kevin Cirilli is lawmakerby with the that sponsored that bill. We are here with house committeeservices chairman jeff hensarling. You just walked off the floor of the house. Passes. Now what. We won. The American People won. The nightmare of doddfrank will be gone soon. What we can do is get capital back into our economy. Too much capital is sitting on the sidelines. Under doddfrank is the big banks gotten bigger, small banks gotten fewer. Our economy is lagged. It codified too big to fail in house. House no. Economic growth for all Bank Bailouts for none. Preserver to of our Community Banks and our Credit Unions. Devoted tohole title capital formation. Day. A good this is all about jobs. Its all about Economic Growth. Werel the regulations that imposed on our economy in the obama era, doddfrank was the worst. We just threw it off. Animal spirits, Free Enterprise can roam again. Well see americans with pay increases in the economy will come back. Ask you about what democrats are saying. Going to potentially deregulate the economy so much. That will would lead a financial crisis. Whats your response to that . Number one, the big banks gotten bigger under doddfrank. Underers have been harmed doddfrank. It codifies too big to fail. Community banks support what were doing. Wall street banks said its very function in our economy. They opposed the bill. Derespect to deregulation its about smarter regulation. Choice act is about smarter regulation. We increased the penalties for doing. For fraud and deception and insider trading. We make sure that we respect due process. We respect checks and balances within our constitutional system. Longer have bureaucrats that make the law that impose discretionary views. We will have again the rule of thein america so that economy can grow. Again, its about smart regulation. About. What this is if youre a banker on wall communityif youre a banker in des moines, what is the time line for when this will through thee senate . As you know, the senate tends to move a lot slower. You received assurances . Have you talked to white house youvice president , have received assurances that this will happen this year. When this move through the senate . I never used the word assurances. Put it this way, i talked to my counterpart in the senate yesterday. Hes thrilled about the bill. Bill. Ted this so the system supposed to work. With his ability to come up with a bill and go to conference with house. Thats what i want to do. We received message of support the administration. My name. An in front of and not senator. I dont like them advising me. How tonot advise them get their job done. Its pretty clear that we have a vision for Capital Markets in thats all about Economic Growth but its all about smart regulation. Replacing about simplicity. Ith replacing bailouts with bankruptcy. There. That template is its something they can build on in the senate. Isnderstand the Senate Different institution. Some of this will get done by the administration. Can get done through reconciliation process. Requires simple majority. Completelyvent abandoned hope on working with the democrats on some aspects of this bill. This congress is over, major portions of the financial choice act will be into law and it is critical part of getting this again. Moving its to unleash capital. What parts do you think could president move through executive order . Warren willabeth this. Arts of what could the president do on his own . Always happy to hear the professors view. But American People dont want a washingtony rulingelite or harvard elite. Greatesteed is the point of Consumer Protection that is competitive, innovative that arent markets vigorously policed for fraud. On the financial choice act, orwellian name, that does nothing enforce the laws. Er since the cfpb come on the scene, free checking has been cut in half. Bank fees have gone up. Mortgages are more difficult. Hundreds of dollars or more to close. In many respects the cfb is consumers. When it came to doing what they supposed to do, they were asleep at the wheel when it came to wells fargo. All they did was impose the fine somebody else did the work. Cop being inof donut shop. I dont know how any selfrespecting democrat can defend that institution. As far as the president can do . I was invited to the signing very first the congressional review act. That undid portions of this. Lotpresident can do a through executive order. In creating new rule making authority. Its not going to happen overnight. Switch. Flipping a today for every community banker, every Small Business takes small bank and Credit Unions to loan to our Small Businesses. Today was very important step for his historic day to back this. I know youre busy. I want to get your take on what happened in the senate with former fbi director james comey testifying today. That . Id you make that democrats saying the investigation needs to continue. Today. Dnt see it i been on the floor all day debating the financial choice act. I really havent seen it all. Its part of the process. I got to review mr. Comeys testimony. We still have several active investigations going on. So far i havent seen at the do of there there. This is an important matter. Needs to be thoroughly investigated. Mr. Comeys testimony is just longer process. He a bill on the floor today. Things youre committee oversee, Terrorism Financing. The president when he was in riyadh, announced a new cyber Terrorism Financing task force with saudi nations. Have you been working in with secretary mnuchin . We frequently meet. This is one of the topics we meet on. Steve pierce of new mexico, congressman pierce is chairman our terrorist finance committee. Were doing a lot. A hearing today particularly about how a. Channels alternative finance challenges including thatin and technologies could be abused and used by terrorist networks. That work is ongoing. Its very serious. Not have that subcommittee. I made it into permanent subcommittee. Chairman hensarling, appreciate you coming on bloomberg television. Thank you very much. Right off the floor right after that major vote passing the house. Will now go to the senate. The Senate Banking committee will have to take that up. Julia, back to you in new york. Julia great timing, great interview. That was bloomberg washington correspondent Kevin Cirilli. Julia could u. S. Shares drown the market. Our next guess says those fears are overblown. Us now. Joining tumbles. T why would we be looking at days than absoluteher level . Theres two things. We should be looking at foremost. S first and which is not that every week we going up. Rigs second part is days of coverage. Just how many barrels you have. Its how many days crude processing and refineries, how many days demand by people driving. Julia its more moment by moment. More relevant of the use. Mentioned opec. March 2018. Arry on beyond theres that potential. There are fears that a major we think in market. They cut so much out the market. Back, theyllg it bring it back all at once. Are they going to be facing versus shell market share. We think they will be minute for that. L than when we look at supply and demand for this year and the essentially, it doesnt 100 percent. Sense that they may not be 100 . Maybe lower towards end of the year. Its a market environment julia what about shell . Continue to be very bullish on shell production. That theyk outperform. They do very well. You see the rig count going up every friday. Have from december 2016 to december 2017, 800,000 barrels, maybe 900,000 barrels a day of growth. Crude oil. In. E counting that despite that, we still see overtries growing 200 million barrels. Julia we were talking yesterday about the prospect of cut in for some of the r d. Do you price that in . Yes. Its very difficult to forecast such a new technology. At the beginning of the s curve. Theres still a lot of gains come. To actually we think cost will. Oing up again julia very quickly, price target end the of the year . A 65. L see julia on a relative bases. Eric, great to chat with you. Eric lee, thank you for joining us. To knowp what you need to gear up for the trading day ahead. Scarlet nasdaq closing record high. Bloomberg television has special the u. K. General election. Joe ill be looking at chinese out, cpi at 9 30 p. M. Eastern. Miss april home eastern. 10 00 a. M. Joe have a great evening. This is bloomberg. Good evening, and welcome to the u. K. Decides. This is the European Headquarters in london. General election has ended and the exit polls are out. Headlines so far. 2 inconclusive election results. The tory said to be the largest party. Inconclusives to exit results