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tv   Bloomberg Markets Balance of Power  Bloomberg  January 17, 2018 1:00pm-2:00pm EST

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here are the top stores were watching at this hour. ryanng it through, speaker has a plan to get the government moving. from the past, we will ask jim jordan if you will go or long with the plan if it doesn't include funding for the defense that he has demanded. and mixing immigration and infrastructure. everyone says they are for investing in infrastructure. as the battle for nafta helped or hurt the cause. shery: the long-term spending gain has reached lawmakers after devolvedgration debate into he said, she said. the senate is not ready for the solution. clear we are not yet
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ready to move ahead with a major agreement of long-term funding for our armed forces, nor, our immigration policy. bipartisan talks are underway on these issues and other key priorities. copper my solutions are not out of reach. for now, congress plans to keep the government running. shery: welcome bloomberg white house editor and chief correspondent kevin. ofin, give us the just speaker ryan's bill right now. it doesn't address immigration issues but it includes other things in their. re. >> the continuing resolution is something to get out of the house of representatives, and will go nowhere in the senate. we have seen this time and time again in terms of legislative policies from speaker ryan's cap.
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ofy will try to get it out the house, but it is up to mitch mcconnell to carry the football into the end zone area right now, it is just not there. i'm immigration, that is not enough to get key democratic support. senate majority leader mitch mcconnell -- you remember that procedural term, that essentially means that in order for there to be a vote in the senate, there has to be a procedural hurdle of 60. those votes are not there for republicans right now in the senate. is it going to get back through the house or go to the other side? >> it seems like the bill will onll in the house when it is the other side of the capital. i think democrats are in a pickle here. it seems republicans are willing to temporarily fund the government for a few more weeks while they negotiate these bigger issues. pressure are facing
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from their left flank to get something done for the dreamers, right now. to hold a spending bill hostage to do it, it is a big gamble for them politically. the government shuts down, and democrats are blamed for it, they could see their big hopes for 2018 and the midterm start to evaporate. shery: last week, president trump shut down the plan i'm brought by bipartisan lawmakers. today, we are hearing that dick durbin and lindsay gray have our again. another immigration plan. when is that expected to conclude? >> we haven't seen that plan yet, but i imagine it is going to be a twist on the first time they presented, which was to , the datareamers recipients, some sort of legal status so they don't have to worry about deportation. what we have to see is how far
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they go towards the white house's demands towards a larger immigration overhaul. the president wants to see what he calls chain migration. an immigration system well known and established for our friends -- family members were already in the country, and make it a merit based immigration system only. democrats are strongly opposed to that, so i don't see how they make a deal and include that provision. that point, it doesn't appear that they will get there. what is the plan? to the broader point, in terms of what you are saying earlier on the program about infrastructure and the hopes of getting other legislative agendas accomplished -- especially a had of the --sident's trip to dollhouse
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.o davos, switzerland the president potentially got a government shutdown might be good. he feels that immigration is something his party wants to hold the line on. .avid: thanks very much both reporting from washington today. we have breaking news today. apple has come out and saying -- they say they'rereciate oven going to reinvested in the united states and employed more people. we have an early return on what u.s. companies might do to tax overhaul. $38 billion coming back to the united states. shery: we have seen apple stock right now shooting up and gaining 2/10 of 1%. a broader view of how the markets are doing. julie. julie: apple is one of the
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biggest companies -- the company that has seen as the poster child of these depreciation issues. apple is seeing -- reprint she a repreciation. it is $38 billion. it will be a direct contribution to the u.s. economy. unclear if there talking about it's on contributions are generally because of the tax plan. simply because of the tax plan. it says there investing over $30 billion in the u.s. over the next five years, and it also points to an established apple campus on a new location. all this part of its announcement today. they are increasing the size of its advanced manufacturing fund
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to $5 billion from $1 billion. there are planning on creating 20,000 new jobs from hiring. -- solan to do hiring apple going back to a chain business point. we will keep covering this because this is the largest plan.er a -- repatriation and a tax plan related to earnings -- if you take a look at the mad -- major averages today. we have seen a gain to a new closing high. were hitting the highs of the session right now, and there are companies talking about these tax benefits. monster beverage is is one of them. the company coming out and saying they expect its future tax rate in the mid-20's beginning in the first quarter of this year it analysts happy with that announcement.
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well, talkingas about a one-time non-cash charge related to taxes of $230 million. it also says it's global but tax rate will be at 20 to 25%. its shares are up 3%. they have other companies were not seen the benefits. yet bank of america, for example, were analysts and investors are more concerned about that costs they are running out. there is concern because of a lower tax rate, maybe they won't be as aggressive at cost-cutting. goldman sachs is not being specific on what effect it will have on its 2018 tax rate, and its 50% drop in fixed income trading is causing a drop in shares. finally, fort as well coming up with a announcement of its are nick saying it will be lower than estimated in contrast with gm.
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talking about a tax boost to this year -- it is interesting here that the varying mitigation that we see in 2018 earnings outlook because of taxes. it is outweighed by other factors. areuse of the tax issue, we seeing an increase to earning estimates. and see evidence of that. you see the s&p 500 estimates in blue, to have been going up. a main reason we are seeing a lot of analysts raise these estimates is because of this tax benefit. apple the latest example of companies giving us details on what they are doing in reaction to the tax overhaul. shery: we want to bring you more on that breaking apple news. seeing $38 is billion. go to mark who is in san francisco. mark, we know that apple has the
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most cash overseas -- how big is this announcement? how significant is this for the company? ahead of theming q1 earnings on february 1. were initially hearing -- they're putting out a press release talking about the three main cornerstones. after this 38 billion dollar repatriation -- it is significant toafter apple inves. they're promising to put back during a $50 billion to the u.s. economy over the next half decade, which is obviously a significant amount of money. what you see is the are browsing out that tax rate with what they're going to do. this tax benefit for apple is pushing them to do more for the u.s. economy than perhaps they would have done before this tax break marketplace. none of us with the turn
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of our nose to $38 billion. parts from bloomberg say they're different reports that $250 billion or offshore. this is a relatively modest portion of the entire amount. we expect them to bring a portion of that back as well? offooks at the are starting with this $38 billion, and in the estimate $75 billion over the next year's coming back from these tax breaks. the 200 or sof billion dollars and change, they haven't said anything on that amazon announced last your that they are building another new campus elsewhere in the united states. they said later this year they will announce another new location. similar to thery customer service campus they have in austin, texas. there also talking about a new center they are building in reno, nevada. they're promising creation of 20,000 jobs over the next five years as per the 358 ilion dollar investment to the
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economy. oft a wide range announcements coming this morning. coveredark, you have apple extensively. what will it take for apple to invest in this capital to see the most significant impact on its business? toa lot of that is going come from this new manufacturing plant. they announced this plan were to investing billions of dollars with manufacturing partners in the united states. it is part of this primitive $50 billion deal. they're raising it from one billion to 5 billion, which means they're getting more components from the united states for future devices. they're working on bigger iphones, new tv appliances, you three sensors for ipads, new ar glasses, and all sorts of driving technology, and you are seeing startups and manufacturing partners in the united states delving into those . we saw a lot of that at seen es
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-- at ces. that fivesurprised if billion dollar fund capital increases multiple fold over the next five years as their wrapping up increasingly in the united states david:. follow the tax overhaul, is it going to return to shareholders and stock buybacks or dividends? it, does not rule out some of the rest of that money. over $200 billion might be used to return to shareholders. >> the original thinking of what they might have done with this 38 billion dollar number today would be returning to in 2012 in the second quarter they announced that they were going to be doing buybacks from shareholders, and a small dividend on a quarterly basis. i think it will continue to do that, and we will hear that in
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the q1, or more likely q2 call. i know they're talking about investments in the united states. making investments in the united states, increasing the amount of offices, and manufacturing partners will be positive for investors in the long-term, in addition to the buyback. shery: thank you for joining us with the latest on apple. is asented at jim jordan member of the house freedom caucus, as well as a social conservative. -- we welcome him now. thank you for being with us. we heard that apple news, they plan to invest more given the tax reform bill that we just got past. , that momentume is a appeared to be sticking around for the gop as we are headed towards a potential government shutdown. how are you going to vote for speaker ryan's short-term funding bill? >> what we need to do is fund
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our national -- but not allow the democrats to continue to say that for every dollar you spend for the truth, we spent -- we need another dollar for spending. that is a bad formula, a bad pattern. it is not what the election was about in 2016. let's hold the line on everything else -- and if the democrats want to shut down the government because they want amnesty and they don't want to pay our troops, i will take that debate any day of the week. that is what we were elected to do, and that is what i support. david: you are very consistent about the defense spending. let's be very clear about this, if the bill comes up and it doesn't have that -- will you vote against it? >> right now, i don't think there is a vote for. i do think democrats will vote,
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and are a number of people in the armed services committee who have problems with continuing this idea that we are going to function under a short-term resolution, short-term funding bill, and not do what needs to be done for our national spending. what we campaigned on was that to make sure our defense has what it needs. let's make sure it has the level of funding inmates, and let's hold the line every well -- let's hold the line everywhere else. that is what we need to focus on. spending,erall, big on both issues, and not some bad immigration deal, which i think is coming soon. shery: so you said you will risk a government shutdown? can't get the funding bills done until we get in the remit on immigration, and they want a bad deal. and that is why the president said no on their bad deal. they want a deal that gives amnesty.
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they don't want to change immigration, then what a wall, it would to continue to have century cities. we are against that. the election was against those issues, to address those concerns. as a type of wall, it would to continue to have century cities. policy we think needs to happen, that is why we are not supportive of the short-term spending bill as it .urrently proposes a it that: everyone can respect matter of principle, but at the same time, you are a member of congress. anything you are willing to compromise with the democrats to keep the government open, anything at all? >> you think the election in 2016 was to give amnesty to people? do you think it was about increasing nondefense spending at $63 billion in one year? was that really what the election was about?
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i do think so. we need to do the policies we campaigned on. david: there also elected democrats. democratsalso elected, so my question is, are you willing to keep the government open? i am willing to do and i am focused on doing what the election is about. which party did they put in power? they elected a majority of republicans in the house and the senate, and they make president -- make donald trump president. they don't want to increase social spending to the tune of 63 billion dollars. i don't think that was part of the election, and i think in the chain migration, defense security, those issues work. i don't see where that is contrary to what we are supposed to do. i am an elected member of the united states congress. historyever before in
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has a party on both chambers of congress, and also the white house, and allowed a government shutdown. how concerned are you that this will impact the gop brand? what we campaigned on and what i know is good public policy -- let's past that. the senate can do what you are going to do. i hope they are not going to shut down the government will but he wants a government shutdown. the policies that election was about, we want those policies enacted. that is what i am focused on doing. i want to fund our troops. even democrats agree with that. a bunch of democrats voted for the national defense authorization act. everyone agreed with that. let's hold the line with everything else. i want to thank you for joining us. i see why you are a champion college wrestler, division i.
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i could see why you want so many matches. thanks so much for joining us. president's favorite punching bag on the campaign trail -- trade deals. how does the president agenda line with promises. we'll take a look at that next. this is bloomberg. ♪
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>> i am going to renegotiate nafta, and if i can't make a great deal, we are going to terminate nafta, and we are going to make new deals. that is another disaster. when was the last time anybody saw us beating, let's say, china , in a trade deal? they kill us. i think china all the time. nafta is one of the worst deals signed by our country. the disruption of manufacturing in virginia was caused by bill clinton signing nafta area we do
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-- enterto mentor another agreement that binds us .own like epp does a trump administration will change our failed trade policies, and i mean quickly. president trump love talking trade on the campaign, but one year end, how this is administration policy hold up? joining us now from washington, a lot of talk on trade in 2017, but aside from pulling the u.s. from the transpacific partnership, we are seen much. will there be more action this year? i think naysayers will say the trump administration hasn't done much at all on trade this year. if you look at punitive actions and things promised on the campaign trail, he pulled out of epp in his first three days out and it hasn't been in
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effect. if you look at trumps on trade measure if you succeeding are failing the trade deficit, it is actually at a level now -- if you look at the data that we have for the first 11 months of 2017, it was actually larger than all of 2016, the trade deficit has been growing. but, i would probably provocatively say that he is partly succeeded. yes cap that this message that -- he has kept up this message that we have to level to pray -- playing ground. that has entered the psyche of people, and the country is waiting for that asked to drop. that asked to- that axe t o drop. up,facturing has picked jobs are being created, and those were two things you want to do with better trade deals, and that is naturally happening right now. david: let's talk about that axe
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dropping. on one hand, you have a drastic in terms ofm used national security, and you have self initiative dumping involving steel and aluminum. what is the most provocative thing the president could do? >> you are right. this year, 2018 has to be the year we see action. not just from trump's support steeleadlines and ordered and aluminum, which will determine whether there will be restrictions on those imports on national security grounds. his facing decisions to put andrts on solar panels washing machines. all these deadlines are coming up. the nafta talks are another big example. is a big economy, and there is a lot at stake there, i believe nafta is the
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want to watch in the more immediate future. he set the deadline for march. trump said last week in an interview that maybe we can be mexico'sible after elections in july. there might be some flex ability there, but he didn't give us insight to what that thinking was. there's so much at stake from that. david: thank you so much, sir mcgregor. -- sarah mcgregor. coming up, nafta infrastructure. the president agenda. we will discuss that next. this is bloomberg. ♪
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david: this is bloomberg markets. shery: let's get a quick check on the markets. we are seeing healthy results
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from earnings season. except for telecoms on the s&p 500. also energy gaining ground today. you have wti above $64 a barrel. also i look at currency markets. we are seeing the canadian dollar gaining 4/10 of 1%. the bank of canada raising rates, but cautious about stimulus. the euro is also holding steady after its biggest falling of the week. while the japanese yen is weakening. house speaker paul ryan says the gop is negotiating in good faith in order to reach a deal on immigration. speaker ryan says the more pressing need is to avoid a government shutdown by reaching a bipartisan spending agreement, but that daca must be addressed
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by march 5. these are talks that are occurring in earnest. fix bac daca, so we don't have the same problems down the road. that is common sense. he also criticized democrats think it might hurt military the bill would extend. arizona senator jeff flake says is dismissing media coverage of his administration as they use. on the senate floor today, flake urged republican colleagues to stop supporting what he calls, these attacks on the troops. people ismy of the
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what the president called the free press in 2017. , it is a testament to the condition of our democracy that our president uses words infamous meese -- infamously spoken by stalin to describe his enemies. the: she tweeted that president has every right to push back against the press, comparing the leader of the free world to murderous dictators is absurd. you've gone too far. pope francis today celebrate mass at the air base in she lay -- in chile. the pontiff called for in and of violent protests in the region after 10 churches were firebombed last week. activists purposely burned churches as they push forward for the return of ancestral
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lands. koreas plan to form a unified olympic team. for the first time in 11 years during the opening ceremony and next month's winter of the pigs in south korea. an official with the south korean ministry told us that north korea will send a cheering squad the pyeongchang, and north and south korean athletes will cheer together. they added that north korea will send an advance team to the south before the games to check olympic facilities. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. david: thanks so much, mark. a long promised infrastructure plan, but the parties enough to are gathering in montreal for a critical sixth round of negotiation. some suspect that the u.s. will pull out altogether, and how
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does the in for chilled for -- infrastructure fit with nafta? firm focuses on infrastructure development in the united states and globally. welcome, good to have you here. i am a bit puzzled on nafta. suppose it goes ahead, modernized and approved, what is that mean for infrastructure? optimizek you have to infrastructure. the stock about rail. rail infrastructure with u.s. and mexico is super slow. board reports are real slow. one of the top reports in the u.s., you think los angeles, you think new york. the third one is with mexico. a land border with mexico. if we have to optimize nafta with the competitiveness of the region, you have to figure out how to address those border issues. shery: what happens if the u.s. pulls out of nafta? >> there is a lot less momentum
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in improving infrastructure then, and what really happens if we pull out of nafta is that the terrorist will go up between the u.s. and mexico. that is another driver -- the up.oarrifs will go david: what if they build that wall. ? >> everybody uses the wall as a big infrastructure project. you still are going to have the kind of incredible trade between the u.s. and mexico. a lot of automobiles -- 40% of imported automobiles was made in the u.s., exported from mexico, a lot of that goes to canada and comes back. it was really created in a true
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free trade zone. if you have the border -- the border is a problem. a hundredelop mexico kilometers interior and unite the atlantic and pacific coast and turn that into a green technology producing region -- doubt be a tremendous infrastructure project that would create an enormous amount of growth and get rid of a lot of problems shery:. not sure how feasible that would be, but in terms of building the wall yourself, is that something you want to touch? i'm hearing that some companies think it is too politically insensitive. >> the wall issue is super politicized. i think what we have to think through is the security issues. things the trump administration has spent a lot of time on is looking at the fact that a lot of the people that come into the u.s. now, they come from the northern --angle of central america
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guatemala, el salvador, honduras. of creating viable economies in that region would be tremendous. shery: are you vetting for projects on the border wall? no. president trump said is that the top of his agenda, and says it doesn't cost money. is there anything in congress to appropriate the funds that are required for this plan? >> this is a fantastic question. it looks and it is happening with president trump spiff researcher plan -- your kind of removing the federal government from the conversation. you're focusing on states and we somehow these. congressman told me, the congressman right that big check. someone has to fill this gap of where does this money come from. are going totates bring in private investors, someone has to structure those
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projects. somebody has to produce the feasibility studies, and that capability doesn't exist in the public sector in the u.s. right now. going to need to play a role, and you are going to have to bring democrats and republicans together to make this happen. blueprints 2025 -- setting up plans for infrastructure projects, what exactly is this? i appreciate that question. we have brought 100 ceos focused on creating an infrastructure plan for the next administration. the administration and over next 10 years -- what is happening is the infrastructure plan that we have, the funding mechanism, the model we have been using since the 1950's, that is exhausted. we need a fit to create opportunities for u.s. companies, bring in private investors, and deepen the balance sheets for u.s. companies so u.s. firms can
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invest in infrastructure. david: we just can't get the permits, federal, or state, is it any appetite to streamline it? >> there is huge omission of going on in washington. nine and a half years now to create projects. the trump administration has spent a lot of effort and is producing some real results, and where working on that as well. you can get to two years without causing any environmental problems. but dutch did it, there were up to 10 years. the canadians didn't, they were up to 10 years. they were environmental bandits, these are responsible countries. it is an efficiency issue. shery: thank you so much for coming into the studio. and we have breaking news right now. we are hearing senator elizabeth warren of massachusetts will be voting for the stopgap bill. also hearing senator lindsey
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gray him will be voting for the stopgap bill. this is according to politico. preventedul ryan has one of those short-term measures to fund the government until february 16. what now hearing senators warren and graham will not be voting for that bill. they have midnight friday, and were going in the wrong direction. up next, republican congressman charlie is with us and give us his reaction to senator jeff flake's condemnation of president trump and future of the gop from the floor of the senate. this is bloomberg. ♪
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shery: this is bloomberg markets
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balance of power. time for the stock of the power, and ford is the worst stock in the s&p 500 right now. they say the company is moving away from building sedans. us, anddoolittle joins you are here now for where they're going. it has been a wild now where they're saying they want to build more suvs and trucks. abigail: it is hard to imagine that ford will not be making sedans, but as you mentioned, suvs and pickup trucks is a more profitable area. sedans are only 20% of revenues. food hot the bloomberg, this is a b.i. chart. i 113. in white we have trucks, and we see back in 2008, there was a cars the at of time where
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took over trucks. away forn, up up and cars. ford is essentially moving away from that area, but the midsizer cars. -- he thinks the midsize area is going to be down. as other companies move towards trucks and suvs. shery: we saw this change in management and ford. how's that factoring in? have the stock down sharply, and this is an entirely a surprise. maybe the degree that their moving away from cars so abruptly. back in may, mark fields was out, have a new ceo. he does not have a car background. he comes from steel. it has not been stellar. he has been talking about smart
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city, initiatives. is the first real talk in terms of what the are going to be doing around cars. a little bit of a turnaround, or at least that is my sense of what is happening here. that is something gm wants -- if we hop onto bloomberg. this is a one-year chart, and we see last year that both ford and gm lower, and then gm took off as the seo efforts took away. there are involved in electric vehicles, something that ford is now articulating they're going to get into autonomous. their moving forward. are questioning if it is a turnaround, -- david: jim hackett specifically said mark fields is not moving fast enough. it was a reaction to silicon valley. it is a close connection to silicon valley, so was meant to be a turnaround, and it was meant to be fast. abigail: right now, the stock is
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not reacting favorably. wild was sideways, but now sharply higher. maybe ford will follow along. shery: abigail, thank you very much. once taxing a favorable reaction is apple. the company expects to pay $38 billion in taxes -- as a consequence of the new u.s. laws. apple plans to spend $30 billion in the u.s. over five years and create 20,000 new jobs at existing sites and a new campus. there with new details is andrew silverman. he wrote back in september that , how will youe come up with the compilation that apple is saying right now? when apple puts out its offshore cash number, we simply
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multiplied by the percentages that congress is talking about. we figured that they would be able to use most of their tax cuts -- the repatriation tax, and they can. explain to me, to $37 billion more or less. numberyou can't play the you came up with, that is not necessarily relate to the $38 billion they are repatriating. be a very similar number -- but i am not sure it is the same number. the other is bringing back to invest, is that right question mark >? we don't know if they're living that cash out there. if they have $250 billion, which is the number reported, a neighboring $38 billion back, is still a lot of cash overseas. >> they have a lot of operations
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in ireland and around the world, and they should bring back all that cash because they needed. shery: and now we heard are going to be doing more hiring in the u.s.. >> there are rumors they're going to be building a huge campus in the united states. do anything, stock buybacks, on talkback's -- bond buybacks. david: there's talks that they would be returned to shareholders -- at least a good chunk looks like it will put towards equipment and a place right here in the united states. >> i think the provisions they put in the tax act -- looks at apple is going to use it. so much, andrew. up next, charlie dent joins us and find out why he told the gop
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to be prepared for the worst next year. live from new york and washington, this is bloomberg. ♪
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david: this is bloomberg markets, "balance of power". shery: jeff flake of arizona speech on the south for today, denouncing president trump on his sustained attacks on the news media, going so far to compare his rhetoric of a famous soviet dictator. of the people is how the president of the united states called the free press in 2017. mr. president, it is the testament to the condition of our democracy that our own president uses words infamously spoken by joseph stalin to describe his enemies. shery: representative charlie
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dent is a close associate of senator flake, and says trump was a factor in his own decision not to seek reelection this year. he joins us now from capitol hill. congressman, thanks so much for your time. we understand you haven't watched the speech, however, i -- ato ask, this rhetoric the end of the day, will it help or hurt the working congress is trying to do? i just heard senator flake and his speech. i tend to agree with the senator that a free press -- an independent judiciary, these are the requisites for a democratic society and democratic government. to the extent there are these attacks to the media, it is very unhelpful in the long term for this country. it sends messages to the people in other parts of the world where you have authoritarian and justify silencing
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critics within their own countries. i think that is hyper rhetoric from the president -- it is extremely unhelpful and not keeping up with our democratic traditions. does: at the same time, this type of language, criticizing the media, going beyond criticizing. is it play well to the republican base? i'm to the president would be doing this if there aren't people accepting it. >> i think there are people who consider this red meat, and some people like it. time, i don't think it is helpful. we should simply cry fake news every time a story appears that might be critical of us. there are stories critical of me, and i don't call them fake news. i might disagree and push back, but at the same time, we have to respect the independence of the media and their right to report
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on us, even if those reports are not what we like them to be. i think it is unhelpful that this type of rhetoric is out there, because of the message it sends overseas for the large part. we have a free media, and a strong institution, based on congress, a strong judiciary. i am not worried about our democracy surviving. i am concerned about countries in eastern europe there relatively new democracies that tendenciesautocratic in turkey and elsewhere. that is what i am concerned about, these fledgling democracies moving in the wrong direction. seeking weare not election this year. in fact, more than 30 republican representatives in the house and senate are not seeking reelection either. how challenging is the picture look for the gop in the midterm elections? simply based on history, the party of the president in the first term, on average, is 32
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house seats. that is just history. we republicans have a 24 seed with the majority. will betion is if this a gentle breeze or a hurricane force wind. i think it will be a strong wind, and i tell my colleagues to plan for the worst and hope for the best. this will be a difficult year. this midterm election will be a referendum for the party bash for the republican party. specific they a referendum for the united states and his conduct in the office. that is my cold, hard assessment, and weft be ready for it. on thei will put you spot. will president trump go down in history has been good for the republican party or bad for the republican party? seeing ak where are fundamental realignment of both parties. thise today is sure of how will settle itself. i am in a different place than
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where the president is on a lot of issues, particularly where it relates to the republican party. has beenlican party taken over by donald trump, who is a nominal republican. david: becky so much, we greatly appreciated -- thank you so much. arethe latest on globe politics -- global politics. shery: coming up, would you mess. pm eastern.:30 .his is bloomberg ♪
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scarlet: it's 2:00 p.m. in new york, 11:00 in san fransisco, and 7:00 p.m. in london. julia: i'm scarlet fu. -- i'm scarlet fu. julia: and i'm julia chatterley. welcome to bloomberg markets. ♪
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scarlet: we are just moments away from the release of the federal reserve beige book, the summary of economic conditions in each of the 12 districts. reporter is at the headquarters with the headlines. -- 11 out ofd to 12 districts reporting modest to moderate gain. dallas was the exception, with robust growth. most districts reporting in modest to moderate, the line would we are getting very used to, and increasing in manufacturing and construction costs. something that stood out was that some regions were able to increase selling prices. some pressure there. manufacturing, from what we have seen in other data, including ip this morning, there

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