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tv   Bloomberg Markets Balance of Power  Bloomberg  August 9, 2019 12:00pm-1:00pm EDT

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headquarters in new york, i'm vonnie quinn. kevin: from washington, d.c., i am kevin cirilli. congoo "balance of power where the world of politics meets the world of business. vonnie: the white house is now holding off on a decision of licenses to restart business saidhuawei after beijing it was halting purchases of u.s. farm goods. president trump to reporters earlier about the situation. trump: what is happening with china now, we have an open dialogue. we will see if we keep our meeting in september, if we do, that is fine, if we do not, that is fine. it is time somebody knows what we are doing. vonnie: let's welcome bloomberg trade reporter shawn donnan in washington, d.c.. this decision, opting against making a decision to provide companies with licenses to restart business against huawei, does it show an increased
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unwillingness to find an agreement with china? shawn: it is another sign things are falling apart. we had all of branches coming out of the g20 in osaka. one was limited resumption of business with huawei and on the chinese side it would be a resumption of agricultural purchases. in the past week we've seen both of those taken away. that is not a good sign. as the president says, we have these talks in september schedule, but big questions over whether they will go ahead. inin: as that is happening september, a lot of pressure on democrats to get usmca to a vote on the floor. does the president believe the usmca getting ratified gives him a leg up in terms of being able to go harder against china? shawn: the big question for the president is where is the economy, and where is the economy going on trade.
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signs in the second quarter this year's trade policies were a drag on growth. the administration is keen to get usmca through to get a positive message on the economy. the business community is behind this. farmers are behind this. usmcae ways he needs the to mitigate the damage on china. there are people in the administration who see the usmca as part of a broader strategy against china, of creating a north american alliance against china. that is some ways away and not necessarily going to factor into the immediate negotiations. vonnie: is the president stalling for time so we get to september 1 and china is not quite sure if the president will go ahead with these tariffs? he said today it is fine of the september talks were canceled. is that a signal? shawn: it is clear he wanted to raise the pressure on china to come back to the table. those september talks were on before he raised his terror threat last week. -- his tariffs threat last week.
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as important as what he said about the september talks was what he said about the dollar today, that he would not go after the dollar and devalue the dollar. that is another concern that has been there in the markets. i think we also need to keep in mind the chinese political calendar. they have, in october, the 70th anniversary of the people's republic. a big celebration that xi jinping wants to be a big moment, a big assertion of chinese strength. it is hard to see them bending to the trump administration before that. that is something trump administration needs to keep in mind. kevin: i want to pick on that because i spoke with a senior source at the treasury department who pushes back on the notion that china has the upper hand in the chinese can try to out weight the trump administration.
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they say that even whether president trump leaves in four years or gets a second term, there is still the populist streak on the left. how the chinese gauge the temperature of u.s. politics, not just within the trump administration but collectively? shawn: it has been clear there was a change of tone and that change of tone come in 2016 whoever was in the white house. there is a mood in washington to be tougher on china. the question is, who can bear the most economic pain? that is the one -- kevin: no pain, no gain. shawn: you can argue that the u.s., because it is a democratic system, has less ability to bear pain. the system has less ability of their pain than china. we know this is not a democracy. xi jinping is installed for as long as he wants to be there. he does not have to respond in the same kind of short-term way with the same economic numbers.
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what you hear over and over again from economists is no one wins in a trade war. i think that is true. the question is who can lose less and who can bear the political cost of losing? i think that is still debatable. vonnie: bloombergs shawn donnan joining us from washington, d.c. our thanks to you. as concern spreads across the u.s. of an economic downturn, britain's economy salsa price contraction as manufacturing shrank. this raises the stakes for prime minister boris johnson government as it seeks a fast exit from the eu. let's bring in emma chandra in london. the reason we got such sharp contraction so quickly is because firms were running down inventories they had built up before the original march 29 deadline. what are firms doing now in anticipation of something else happening october 31? emma: we saw that contraction of
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.2% versus the expectation that economic growth would be flat in the second quarter in the u.k. you mentioned manufacturing. this idea as well, economists saying we have companies who have run down the inventories they built up ahead of the previous brexit deadline. is next brexit deadline october 31. we're looking at some reports that inventories may build again. that tends to happen closer to that date. a number of companies still concerned about what may happen with regard to brexit. johnsonwe know boris has said that since he took over less than three weeks ago that he would leave, do or die, on october 31. the concern is about the possibility of a no deal brexit. you mentioned that fall in the pound against the dollar and the euro. driven by this sense we could be
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heading toward a no deal scenario. a chart shows you how much the euro has gained against the pound over the past 14 weeks. 14 straight weeks gaining against the pound. that is a record. we also saw the cable rate fall below 1.21 and hit another two year low. another talk about the cable rate reaching parity. it is not a consensus view, it is not a majority, but it is being talked about more frequently when you look at analyst notes or fx strategy notes. the focus on what will happen on october 31. kevin: in terms of when you look at this in terms of what is going on in italy, all of this is moving, shifting geopolitical parts. what is the latest with italy? emma: seeing a return to political chaos in italy as well. it is all happening over here in europe. the deputy prime minister
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calling for a snap election. sayingme minister conti he is not going without a fight. what is key to remember is they are not of the same party. they formed a populist coalition. of tryingsing salvini to make hay while the sunshine's as his party does better in the polls. we saw a big selloff of italian bonds and a rush to safe havens. there is concern the dispute between italy and europe over their budget can bubble to the surface as we look at further political chaos in italy. kevin: thanks to bloombergs emma chandra and now let's get a quick check on the markets. here's abigail doolittle. abigial: we started the week with intent selling pressure and are ending with not quite as intense pressure. take a look at the dow, the s&p 500, the nasdaq, all down 1% or more, putting these indexes on pace for a weekly decline.
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yesterday, the indexes on pace for a weekly gain, now each down more than 1%. a piece of this is the 10 year yield, it may not be down a lot, but last year we were in a dynamic where yields were rising and investors were selling stocks because they were scared the fed was tightening too fast. as yields go lower, stocks go lower. what does it mean that investors were buying bonds? this is a great bond bull market and it goes into effect going back to 1980. you can see this huge downtrend. last year the 10 year yield at 3% and above. dovishness, the fed uncertainty around the trade war and fears along those lines. you can see the 10 year has gone back to the bottom of the range. before then accommodation, the range has helped behind me. before that accommodation, it is well below that range. 1.7% needs to hold or we could be looking at the 1% yield so many are talking about on the 10
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year. , down two s&p 500 weeks in a row. out of these last 10 days, only three updates. we are on pace for a 4% decline over that time. investors are selling risk assets. a piece of that on the day. we are looking at the apple complex, apple down 1.6%. many apple suppliers -- on the huawei news the u.s. will not be extending licenses in retaliation for china not buying crops. a risk off day in the risk off week. vonnie: thank you. kevin: coming up, debate over gun legislation. we will talk with our political roundtable about how parties are looking to make progress on the issue. this is bloomberg. ♪
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vonnie: this is "balance of power," on bloomberg television. live in new york, i'm vonnie quinn. kevin: and washington, d.c., i'm kevin cirilli. we turn to mark crumpton for first word news. mark: china accuses a u.s. diplomat of being one of the main causes of the protests in hong kong. information ofhe 1 -- of the diplomat, including information about her family. the information comes after images surfaced of her meeting with opposition protesters. the spokesperson briefed reporters earlier. >> i do not think that leaking an american diplomat's private information, pictures, names of their children, i do not think that is a form of protest. that is what a thuggish regime would do. that is not how a responsible
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nation would behave. releasing any information of an american diplomat is unacceptable. that is not a protest. that is what a thuggish regime does and it is unacceptable. mark: the pro-democracy protests have expanded to include hong kong's international airport. thecrats are criticizing trump administration over the largest immigration sweep in a decade. 680 food processing workers were rounded up in mississippi. cameny cases, children home from school to find their parents missing. more than 300 of the workers have now been released. democratic presidential front-runner joe biden says the roads -- says the raids show president trump is morally unfit. india's prime minister has proclaimed a new area -- a new era in kashmir. he ended decades of autonomy in kashmir to get rid of corruption and dynastic politics. pakistan warns there could be
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genocide and claims part of kashmir. kurdish fighters have attacked the turkish military base and a turkish controlled area in northern syria. two soldiers have been wounded. the turkish defense ministry says the base was attacked by an antitank missile. the move comes only days after turkey and the united states reached a deal to set up a coordination center to establish a saison in the region. -- a safe zone in the region. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: thank you. after two mass shootings devastated dayton, ohio, and el paso, texas, gun control has become a central topic of callrsation, with renewed for background checks among all gun buyers. the president waiting earlier today. president trump: we need
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intelligent background checks. this is. question of nra, republican, or democrat. i spoke to mitch mcconnell yesterday. he is totally on board. vonnie: let's welcome our political panel here with me in new york. the democratic strategist and in arlington, a trump 2020 campaign strategic direction communicator. mark, is the president letting momentum fade on this issue? what are intelligent background checks? mark: we have to recognize the fact that the background check system is not perfect. most people believe it would not have stopped either of the shooters from this weekend from gaining their guns. systemre holes in the and despite the fact that president trump signed a law last year that those many of them, we need to do more to strengthen the background check system so we can catch more people and get more information in and stop people who can throws a -- pose a threat to
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themselves or others from getting a gun. vonnie: the inclusion of the word intelligence, what does this mean? does this giveaway out of there is something the nra does not like. marc: of course. it is kicking the can down the road. mitch mcconnell has had a bill on his desk that will close some of these loopholes. he has done nothing. he is not bring the senate back in august to address the crisis. he is doing is counting on the fact the area relies on that public attention will pay, death will fade, and we will keep having this discussion -- public attention will fade and we will keep having this discussion. saying hech mcconnell will have bipartisan issues in september to top the legislative calendar on issues pertaining to cohesiveness surrounding background checks. how do you build consensus on what actually can get done?
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this has divided republicans and democrats for so long. right now, in terms of what the president is working with mitch mcconnell on, what can get done in september? marc: right now we need to get thoughtful leaders on both sides of the aisle talking to each other one-on-one and not on television. right now you have too many people trying to score cheap political points. the democrats are fundraising off of this national crisis. senator mcconnell and the president realize we need to have thoughtful conversation among leaders who can come to an agreement in areas where there might be agreement such as red flag laws, such as ways to strengthen the background check. right now, political considerations are taking too much priority in terms of the democrats, and we need to let everything died down and have thoughtful conversations and see what congress can move forward on. kevin:what you say --
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julie, what you say to folks who say what it democrats do this when they had control of the majority follow the sandy hook shooting. julie: something called the filibuster, that catch -- that pesky thing that mitch mcconnell used to his advantage. it is past time for us to have action and not conversation. we have had conversations after hook,ine, after sandy after littleton, colorado. consistent conversations we have had and nothing has come of it. it is past time for action. this is not going to stop. we are a nation that has a mass shooting every single day. that is not normal. that is not something that happens in other countries with stricter gun safety laws. that is what we need to do here rather than have more conversations about an issue we all know is a national epidemic. vonnie: i want to bring up a photo that was tweeted out by the first lady of the united states following the el paso
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hospital visit by her in the president. you can see a little baby named paul orphaned in the el paso atrocity. i am curious as to why you think this photo was tweeted out by the first lady and why the president is giving a thumbs-up. what is the message of this photo to the american people? marc: i cannot see the photo you are referencing, i do not have a monitor. what i can tell you is what we have seen and the result of the things we have seen that have come out from that visit is that the president and first lady were there offering comfort and aid to those who were survivors. the victim's family and also to honor the first responders. i saw a report yesterday about how the -- the president got on one knee so a child could hug him and providing that uplifting spirit we have seen summit times in a national tragedy. i know there were many in the el paso and eight areas that were
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thankful the president -- and dayton areas that were thankful the president came. kevin: later today there will be representatives from big companies that spoke to the president about this. they will be talking about ways in which the public and private sector can work together to prevent some of these attacks from happening by monitoring social media post. what role does social media companies, what role will they have to play in being part of the solution to this epidemic? julie: social media has a role to play, whether they want to plant or not is a different story. there are websites like 8chan people can go on and say virtually anything that inspires the shooter. twitter and others can look for target words, certain triggers they know are allied with these kinds of actions. whether they want to do that or not is a different story. they are all about the first amendment and free speech and not limiting anybody's ability to speech.
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we are dealing with the national and the damage. if they go so far as to ban hate speech, they should also go so far as to ensure nobody's being radicalized on their platform. kevin: i want to thank mark, trump 2020 campaign , andnications manager julie, democratic strategist. still ahead, uber shares take a plunge after posting a loss and weak sales. it is our stock of the hour, next. this is bloomberg. ♪
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kevin: you're watching "balance of power" from washington, d.c. i am kevin cirilli. vonnie: from new york, i'm vonnie quinn. over falling sales growth is jason investors away after just reminds as a public company --
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is chasing investors away after just months as a public company. abigial:. 14%,ues not as strong, up falling in the wrong direction. up 60% from a year ago. investors not liking that. it has to do with that ridesharing business. 72%.er eats grew that is a bright spot. what happened relative to these numbers, it could be a one-time issue, items related to the ipo. if we go to the bloomberg and take a look at the chart, analysts think it could help explain why even after the disappointing quarter, the gap between the 12 month price target and the actual share price is roughly the same, even though we have this huge drop in price, as you can see on the bottom. investors and analysts seem hopeful they can turn it around. it is a young company.
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these were one-time charges. kevin: what is going on with lyft which just reported a good quarter? abigial: they reported a good quarter were they beat numbers and the outlook is good. hoover's numbers -- uber's numbers are much bigger. the law of large numbers. from a competitive standpoint it looks like both companies could benefit from rising pricing. interesting to think about for lyft and uber because they are young ipo companies. lock ahead could put pressure on the shares, but the stories do seem to be intact. vonnie: abigail doolittle with the stock of the hour. thank you. up next, we'll be speaking with the guest from the uscis. this is bloomberg. ♪
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this is "balance of power" on bloomberg television. from washington, i'm kevin cirilli. vonnie: i'm vonnie quinn in new
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york. let's go to first word news with mark crumpton. mark: the president break reporters earlier at the white house. intelligent background checks, this isn't a question of nra, republican or democrat. i spoke to mitch mcconnell yesterday. he is totally on board. mark: the move comes after last weekend's pair of mass shootings in texas and ohio left a combined 31 people dead. the pentagon will not rush to more than $10 billion contract for cloud services. rivals have complained the contract is all but rigged to favor amazon. the defense department said the contractor bids are still under review and the winner will only be guaranteed a million dollars of the possible $10 million. british prime minister boris johnson is urging the european
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union to show common sense on brexit. theants them to rewrite divorce deal which he calls unacceptable. the british parliament has rejected the deal three times. in japan, growth was stronger than expected again. grew atmestic product an annual rate of 1.8% in the second quarter but that did little to ease concerns and trade tensions that a 10 at sign will slow down the japanese economy. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. arrests that the u.s. mets ago border have fallen for .he second straight month apprehensions dropped over 20% in july. this comes after a daily border crossings by undocumented migrants had a 13 year high earlier this year. joining us now is ken
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cuccinelli, the acting director of u.s. citizenship and immigration services, a division of the department of homeland security. help me understand what is going on here. july was the first month in five months we have had less than a thousand illegal crossings at the southern border. it is still at crisis level numbers but it is a major improvement. over 40% improvement from the peak in may. we are happy with the trendline. the reasons we are here are the president's interaction with , and yet now we have tremendous cooperation from mexico, both defending their own southern border, and working with us on the remaining program. kevin: i want to keep the hyperbolic speech out of this, but the images from mississippi
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captured america as a whole from that raid. what do you say to folks, even if they are republicans or democrats, who are turning on a news and seeing those images of , and are, for a lack of a better word, uncomfortable with it? ken: the reality is, there is no to make pretty enforcing the law against people who are violating it. for instance, orders of removal, and are here illegally. think of criminal arrests. there is no pretty way to go in and arrest a person who is a fugitive, whether they are with their family or not. job lawrt of the tough enforcement officers have to do. this week we see ice with one of their largest operations in seven locations at three employers in mississippi. frankly, you have a lot of the
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focus on the companies themselves, people asking serious questions about illegals who are exploited by drug cartels coming up, and then exploited by companies to improve their bottom line, at the expense of the potential for u.s. workers to have these jobs as well. there are a lot of problems that ice has to contend with in a situation like this. they have upped their game from last year, a lot more investigations, cases, a lot more arrests. are there any conversations ongoing either at uscis or homeland security about how better to handle all of this, how to handle this you mainly? -- humanely? it seems impossibly cruel to separate children, to have children see their parents be arrested. ken: this happens every day in the criminal context. as i said to kevin, there is no
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getting around the discomfort and how this looks, whether you are separating a criminal from where they live, their family or what have you, or separating people that have violated the laws, many of them criminal, that ice is picking up. i don't think there is any way to pretty it up. if you have some ideas, we are open to hear them. enforcing the law, by its nature, is a rough and tough undertaking. but that is not a reason not to proceed ahead and enforce the law. otherwise, you have sent the message, it doesn't matter what you do because we will not enforce the law. clear,nt trump has been that is the opposite message he wants to send. vonnie: it does seem like so many children are witnessing, as you say, the enforcement of the law. but couldn't there be a policy put in place or at least the
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children do not see it? ken: that is an excellent point. it's worth noting, the people who get removal orders, and there are more than one million in the u.s. today, have been given notice, and are asked to leave voluntarily on their own time in their own way. and managing their children themselves. they have refused to do that. they are responsible for what you are seeing. why is that, why do they refuse the removal orders? yesterday i was at the department of justice, and they say they have raised a host of concerns, saying there are not enough enforcement mechanisms, attorneys, judges. think people get that, they are given a removal order but they don't follow the law? ken: they don't follow the law. we are in the position of ice
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having to go and sees the person and physically remove them from the country. that is not how we want to operate. that is not our ideal. that is why we have both voluntary removal, and that is why they are given notice with the expectation they will obey these orders. we start with the assumption that people will obey the law. when they don't, enforcement mechanisms kick in. agen not the fault of ice ts that they are enforcing the law. it is the fault of the parents who are refusing to obey the law. kevin: how would you encourage those migrants here illegally to follow the law once they are given a removal order. to prevent these images that we have seen, what would you say? can wrap up whatever their business is in this country themselves, so they can keep control of the timing and so forth.
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that is the main motivation. that and respecting the law itself. most of the folks we are talking about, many of the folks we are talking about, broke the law to come here. half brokest under the law to come here in the first place. you already start with a situation where you have people who demonstrated a willingness to violate our laws coming here in the first place. they are still given this last chance to do things their own way and to work their way back to their home countries in accordance with our law. there are over a million people in this situation that ice is responsible for removing since they are not obey the orders. vonnie: is there a limit on the number of people you can deport or separate from members of families? at which point, the public starts to turn against the president and the administration in terms of political support.
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would you then rethink that situation? are at the levels we right now, president trump's administration is well below the deportation rate of the obama administration. that has not been a goal for the administration, but with the way the policy has worked out, what congress has not done in this area, what some judges have been doing to make this a more difficult road to enforce the law that congressman on the books, we are seeing lower numbers than you saw in the obama administration. at some point, there is a resource limitation to how much you can do, even if everything runs smoothly and everyone operates on a voluntary basis. what those numbers are, i'm not sure. we had never approached that ceiling. complex issue. again, those images out of mississippi, just gripping to
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say the least. the acting director of uscis. thank you for coming in. trade concerns continuing to weigh on treasury yields. we will talk with miami guinness -- miami guinness. this is bloomberg. ♪
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vonnie: this is "balance of power" on bloomberg television. i'm vonnie quinn in new york. kevin: i'm kevin cirilli in washington. another top story out of washington this week, u.s. treasury yields closing at their , weighed downver by growing concerns over the escalating trade wars impact on global growth. for more on the economy, let's welcome maya macguineas,
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president or the committee for a responsible federal budget. what is going on with treasury yields? one big structural change over the last few years, treasury yields have been much lower than you would have expected in terms of overall budget deficits. that is one of the areas that you would not have expected. there are a lot of things that are going on here and most of them are not good. a decent amount of pessimism about uncertainty, future lower levels of growth, and lower levels of productivity going forward. keepinga pessimism people from coming to the safe investments. at the same time, we haven't not been able to affect -- people still look at the place where you want to part money when you are unsure. it is an uncertain time in the global economy. i hear all this talk
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about pessimism and i wonder, what is the underlying root of the concerns of this pessimism? is it the trade war, that we are on the drink -- brink of another recession? optimisticad you are because i'm pessimistic about these things. there are's short-term, median term and long-term. markets like certainty. certainty is the cheapest boost you can get to the economy. right now we have a dysfunctional political system where there is so much fighting. we have a president who does not like to provide certainty. tax is to negotiation keep people guessing on where he will go next. term, we have real challenges to growth from demographics. we have an aging population around the world. that means growth is not going to be as easy to come by as it has been in past decades. at the same time, medium-term,
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we have so many bigger challenges of what is going on in the world as we have changing geopolitical issues affecting the power structure economically and geopolitically. and we have changes from technology that at uncertain to. a lot of questions and people are drawn to the u.s. in those times. vonnie: even though yields are as low as they are, the treasury is refunding, amounts at records. how long can the u.s. continue to binge on debt? maya: i don't have the answer to that, and i sure don't know why we seem to be so intent on finding out. i can't tell you all the factors going on in the economy right now which are keeping treasury yields where they are. but we have so many advantages, because our borrowing rate is so cheap. it gives us the chance to become structurally strategic and sound
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but we are doing nothing. we know we have these challenges, take aging. we have to think about growing our economy in the long term. we are doing nothing to get ahead of that issue. on the issue that i focus on, our fiscal health, it is inconceivable to me that because rates are so low, we would not use this moment to get our fiscal situation under control so that our debt is not growing faster than the economy. instead, people are calling to borrow even more when the single fastest growing part of our budget is interest on our debt. i don't want us to find out how long this can last. i want us to get this under control. vonnie: the recent bipartisan a littlet done, flew bit under the radar, no talk about it whatsoever. you were very unhappy with it. explain why. maya: i am at the point where i
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believe the fiscal recklessness we seem to exhibit at every opportunity has really come to reflect this broken government system we have where it is so hyper partisan and toxic, and both parties are competing on giveaways to the public. what is really important is we listed the debt ceiling. we didn't have those crazy calls for defaulting, which is a stupid thing to do. we lifted the ceiling, but we should have done that without increasing the debt. it used to be when we increased the debt ceiling, we would think about, should we bring the debt down? instead we borrowed another $320 billion over two years at a time when the debt has never been this high relative to the economy, when the economy was the strong. so we are already breaking records in terms of being irresponsible. we added to that debt even farther, and we got rid of
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spending restraints going forward. what concerns me is what you said, nobody was talking about it. many of the people that we have looked at as fiscal heroes of pizzast loaded without a with how damaging this is to the debt. this is disappearing from the national agenda, and that is what worries me. kevin: i remember a couple of years ago when there were these ideological battle lines even within the republican party. what is the source of the one talking about it? is it president trump? it is not even on the menu of concerns. i think president trump is part of it, as well as the leaders. there is no political leadership right now. rank-and-file members are following their leaders. our debt is the highest it has ever been since world war ii, interest payments will be faster than the defense budget in five years. you don't hear any political
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leaders calling for it, and the parties are so concerned about the next election -- every election is life and death in the party's minds. instead of saying, what are the issues we need to be working on? has gone up $2 trillion since president trump has been in office. even more troubling, he signed that would increase the national debt by $4.1 trillion. that is what he signed into law on top of a growing debt. without leadership, i don't know how this comes back. kevin: i know i'm getting ahead of myself, but it will be the 2024 cycle that the republicans will be talking about this in the field. macguineas.o maya thank you for coming in. democratic candidates
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are flocking to the buckeye state this weekend to make their pitch at the famous state fair. this is bloomberg. ♪
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kevin: butter cows and everything served on a stick. it is that time of the year again, democratic candidates are flocking to the iowa state fair this weekend to make their pitch to voters. joe biden has already tripped up in the hawkeye state. >> we have this notion that somehow if you are poor you cannot do it. poor kids are just as bright and talented as white kids -- wealthy kids, let kids, asian kids.
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we think, we are going to dumb it down. they can do anything everyone else can do given a shot. is wendyining us now benjamin's and. thank you for being here. what is going on at the iowa state fair? >> uncle joe. the former vice president has been doing these verbal gaffes since his 40's and 50's, now in his 70's, and now he is coming off sounding like an old man. teachers over his words. he not only had that mistake last night which you try to get back on track with wealthy kids, which is what he wanted to say. earlier he also said we choose truth over facts, when he met truth over lies. still the front runner in iowa by a slightly smaller margin,
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but yes to be careful about what he says. it is a case of not prepare before the debates as his team wanted him to be, but he is also not taking the lead for granted, saying it may be a 10 or 12 point lead but that doesn't mean that he will be the candidate. >> that's right, it is very early in the game. there are still 20 candidates in the race. is surging in iowa. kamala harris is dropping. biden still has a comfortable lead but we have spoke to voters who have said, i like him, but i want to look at the other candidates and see what they have to offer. it is biden's to lose. them when i asking was there, who will you vote for? they would say, i have not met them all yet. senator booker has been having a good week. ishe is doing ok, still
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pulling in the single-digit. as much as he is trying to grasp onto what his unique messages, he is struggling. vonnie: back to this particular gaffe. say something so colorblind? you did mention, he corrected himself, but it is a very silly thing to say. >> it was, and i honestly believe that he did not mean to, that way. when he was talking about the shootings this weekend, they were of course in el paso and dayton. he initially said houston and michigan, which are the sites of the past and future presidential debates. houston and michigan were on his mind, that is what came out of his mouth. he quickly corrected himself. that is the difference between
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him and president trump. when president trump says something shocking, he probably meant it, or probably some sort that he isad crafting for us. biden made a mistake and try to correct it quickly. he does have a history of saying the sort of things. before barack obama was his boss, he wants referred to a candidate barack obama as clean and articulate. kevin: thank you to politics editor wendy benjaminson. vonnie: coming up, real yield with lisa abramowicz. sign up for the balance of power newsletter at bloomberg.com. this is bloomberg. ♪ ♪
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lisa: from new york city for our viewers worldwide, i'm lisa abramowicz. startsrg "real yield" right now. coming up, fears of a global recession reemerging with economic and political concerns rattling market. central bankers struggled to keep up defenses despite a round of surprise rate cuts. investors flee to safety, buyers: the most from junk bonds the most since 2018. where did all the bond bears go? >> the 10

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