Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power 20240714

The Longstanding Alliance goes back decades. Two very different attitudes towards china. Australia wants to get along with china and the United States. The United States and donald trump in particular see china as a rising threat. How you navigate that, what we get in the press conference on china is how the issue of china has affected the relationships the u. S. House with allies in the pacific. David as we saw in the opening remarks in the oval office a short time ago, there was a lot of talk about the longstanding close relationship between the United States and australia. Has the dispute the United States has with china put strain on the relationship between australia and china . It has. Australia has been asked to pick sides. It does not want to pick sides. At the same time, it is navigating its own relationship with china and questioning whether it has gone too far in being too cozy. We have seen some universities in australia question relationships with the Chinese Communist party. In,ave seen politicians australian politicians, under scrutiny for their relationships with china. There is a moment of thought going on in australia right now over its relationship with china and the direction of that. But it is a different kind of conversation than what you are getting in the u. S. I think that is a reflection of the relative powers. Australias a country of 20 million people. It is not the economic power the United States is. David we are looking at the white house waiting for the News Conference between the Prime Minister of australia and President Trump. We will bring that to you live as soon as they come in. I am told they are still meeting in the oval office. In parts of concern asia and the Pacific Islands about the increasing influence and power of china in the area. Australia historically has said we will cast our lot with china. Is australia concerned about the growing dominance of china in the region . Absolutely. Australia is not immune to those concerns by any sense of imagination. At the same time, there is the question of its relationship with the United States. Australia is a member of the transpacific partnership. That was an Obama Administration effort to balance the power of china in the pacific. 12 nations, when the u. S. Was part of it. The other 11 nations decided to go ahead with it when President Trump pulled out on his first full working day in office. Australia is using that to help define its trading relationships in the pacific. At the same time, it is competing with the United States. It is competing with u. S. Farmers and ranchers for the japanese market. Japan being a member of the transpacific partnership. We know President Trump wants to unveil a deal with japan where be full feature next week. There are economic rivalries with the United States. There is a relationship with china that australia needs to manage for its own economy. There is this Longstanding Alliance with the United States. It is a messy world in the pacific. This is an example of how donald trump in some ways has made navigating that messy world a lot more complicated for countries like australia. David what about the bilateral trade relationship between the United States and australia . The United States has had trade issues with japan, negotiating an agreement we believe. There have been threats about europe and other places around the world. What is the nature of the bilateral relationship with australia . Issuese are minor trade with australia in comparison to others. Australia has done a good job building a relationship with President Trump and avoiding some tariffs he has applied on other allies, particularly when it comes to steal and aluminum. Australia avoided those last year. The president has raised concerns over a surge in imports of aluminum from australia that we have seen since then. What we have seen in recent australiane government tell exporters out of australia they need to exercise restraint to avoid reaction from the United States. Not all relationships are simple, even among friends. We will hear lots of friendly language in the press conference coming up. There is the rivalry when it comes to big agricultural commodities. Exporters a wheat and so is the United States. Australia is a beef exporter and so is the United States. Australia sells coal overseas and so does the United States. David as we wait for the press conference, we are mindful there are other negotiations going on between the United States and china. The chinese delegation will visit some farms next week. From Scott Morrisons point of view, is he going to be encouraging if not urging the president to come to some terms with china . Scott morrison and his government have been clear in recent months that they want to see peace between these two economies, the u. S. And china. We have seen some fall out in the australian economy. In august, we saw that with the currency swings. Australias currency taking a dive for a few days after the u. S. Declared china a currency manipulator officially. Australia was one of the economies hit with the fallout of that. Pragmatism atmic work here as well. Scott morrison wants to sell lots of the two china beef to china. There are concerns in australia that if the u. S. Signs some kind of big deal with china that will involve purchases of u. S. Agricultural exports, potentially natural gas as well, that it could see chinese purchases of australian commodities reduced and hit the economy. All of these things are complicated and intertwined. You can have the greatest friendship in the world and still there will always be pocketbook issues. David it is a difficult world these days. Our thanks to shawn donnan, our trade guru in washington. Let me ask you one more question. What is the main thing President Trump wants to get out of this from the Prime Minister of australia . I think he is looking to get an endorsement from Scott Morrison for his tough line on china, on the trade side of things. He also wants to project strength and friendships in the world. Australia is a was good for that for american president s australia is always good for that for american president s. This should not be a testy press conference. David thanks to shawn donnan reporting from washington. Now we want to check on the markets with abigail doolittle. Abigail very small moves on this friday. Investors tired after a big week. The dow and s p up slightly. The nasdaq slipping slightly lower. Providing thecing shortterm borrowing market with liquidity it needs. Not much happening. Where something is happening is utilities, up. 2 . An alltime high, that was true yesterday, too. Some would say that is a bearish 500. Sion to the s p we are looking at the degree percentage away from an alltime high. The s p 500 within spitting distance. You have to think it will likely happen any day soon. Energy down 22 from the alltime high, still in a bear market from the alltime high. That is a bearish diver gence. Says it could be a bearish signal. Saying that more broadly. That is something to keep an eye on. Both sectors close to alltime highs. Lets look at the movers. We are looking at positive movers in the health care apparently, there is a rotation into the health care space. We have been talking about rotation into value out of momentum. We are looking at another rotation into health care. A lot of these companies have nice dividends. Lets look at oil. A volatile week. Another reason for traders to be tired. The move monday the biggest going back to 2009. Cooling off as saudi arabia suggesting they will bring supply on more quickly that was taken offline by the attack. We do have crude oil up 7. 3 on the week, the best week since june 21. This is risk on considering it is a risk asset. Major actors mixed as to whether we will see another week of gains. David we are waiting at the white house for the News Conference between the Prime Minister of australia and President Trump. We saw a moment ago a live shot of the president and Prime Minister with their wives coming out of the oval office on their way. We will bring it to you live as soon as it happens. This is bloomberg. David this is balance of power on bloomberg television. I am david westin. We turn to Mark Crumpton for first word news. The u. S. Has slept sanctions on Iran Central Bank in retaliation for attacks on Saudi Arabian key oil facilities. President trump says they are the most serious ever imposed on iran. Says it would cut off funding for the revolutionary guard but may also limit irans ability to import humanitarian goods into the country. Iran has denied responsible if the last weekends attacks. In germany, Angela Merkels coalition has agreed on the landmark package to cut Carbon Dioxide emissions. That eases tensions that threatened her fragile government and gives chancellor merkel something to showcase at a United Nations conference next week. British and European Union negotiators are not giving up on reaching a brexit agreement. The sides have agreed to continue talks in brussels. Ireland is not holding out hope saying the sides remain far apart despite improvement in the mood music. Besides are set to meet again next week. U. K. Prime minister Boris Johnson was due to meet the e. U. President at the General Assembly in new york. The houston area is starting to clean up after being hit by almost four feet of rain. Much of the region remains flooded from Tropical Storm imelda. Schools and factories have been closed. So is George Bush International airport. The Sheriffs Department carried out more than 400 high water rescues. Global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David thanks so much. We are waiting for the News Conference between President Trump and Prime Minister Scott Morrison of australia. That is a live shot at the white house. We saw them not far away. We want to bring in peter coy. Welcome. Put this meeting and News Conference against the larger backdrop of the Global Economy. How important is it that these economies get together and help drive growth that we are seeing tail off . They have different relationships with china. The u. S. Has a big trade deficit with china. Australia has a surplus. Australia is a huge producer of commodities for which china is a prime customer. It has got to be fascinating to listen to the two of them discuss china. Morrison clearly perceives a big benefit and trump as a big negative, rightly or wrongly. David what could happen from these meetings that could encourage chinese growth, which is what presumably Scott Morrison needs . To china,re iron ore he needs more chinese growth. Chinas economy has been weakened by the trade tensions with the u. S. Working level chinese negotiators are in washington this week. Talks are continuing today even as the meeting between trump and morrison goes on. Signs of been tiny efforts of confidence building measurements of rapprochement. The u. S. Will take down tariffs on skateboards from china and on 400 different products. Apples request for relief from tariffs looks like it might get approved even though trump said at one point he would reject it. David stay with us, peter. We want to bring in tom daschle, longtime senator from south dakota, and now the ceo. You have seen these meetings many times at high levels. What is it the United States would want to get out of the meeting with the Prime Minister of australia . I think the most important thing is a better understanding of what we can do multilaterally. It is critical we understand the importance of not doing things alone. The more we can build allies and relationships and trust, the more we can build confidence in that alliance, the better off all countries will be. That ought to be at the top of the list. David you are a keen observer of washington. President trump came in saying i do not like multilateral, i like bilateral. Do you see any opening donald trump might change his view and say we need multilateral here . I think necessity is going to drive the decision. There comes a time when we have to realize we cannot do it alone. As powerful and strong and revered as we may be internationally, we are stronger by numbers. We are stronger by taking alliances where we have them historically and where we can put them in the future. That is critical. Australia is a key illustration of the importance of alliances today, especially with china. David let me turn slightly because the subject came up when President Trump is meeting with Scott Morrison. That is increased sanctions on the central bank of iran. The United States seems to be going alone. Europe is not necessarily supporting this. We see people piling in for the News Conference. Can we make effective sanctions against iran to make them change their behavior . I think sanctions are sometimes an important option. In this case, i think having multilateral involvement is essential. Sanctions cannot work if there are loopholes. If there are loopholes involving key allies who are not willing to respect those sanctions, it does very little good for us to apply them ourselves. David how concerned should we be about the message we are sending to other allies in the region around iran . We have promised we will protect saudi arabia. Given the attacks that appear to be from iran, does that raise questions about our ability to protect them . I think we have to be careful about promises we cannot keep, promises that have enormous implications. What happens if we make that promise and we are taken to the next level . To whom do we turn for continued support and alliance . I think it is a very dangerous proposition. David let me ask one political question about the state of the Democratic Party right now. We see a fair number of candidates in the race. What do the democrats need to do to have an effective challenge to President Trump this time around . I hope we dont blow it, frankly. I think we have a real opportunity here. We have a number of good candidates. I think we have to stay unified. We have to stay on message. We have to remember there are a lot of individual and independent voters that are hoping we do not go too far to the left and alienate a large segment of the population. We have got to reach out, bill that kind of coalition. It will take republicans, independents, and democrats. David we just saw the first ladies come into the room for the News Conference. It must be pretty soon. There seems to be a fight between the moderates and progressives. I beg your pardon, im going to interrupt you. We have just had the announcement the president and Prime Minister are approaching the podium at the white house. You can see everyone rising. Stepuse as the gentlemen up to the podiums for the News Conference which we will take. President trump thank you very much. We had a spectacular morning. It is an honor being with the Prime Minister and mrs. Morrison. Thank you very much. Australia is a fantastic country and brilliant ally. We just spent a lot of time together with our representatives. They get along very well. We are doing a lot of deals. We talked military, trade, everything you can talk about. We came to the same conclusion i think in every case. I want to say it is an honor having both of you here. Thank you very much. You have a truly great country. I dont think we have ever had a better relationship then we have right now. Tonight, we are going to have something very special in the rose garden. That money wef spend on the weather predicting equipment, they are saying no chance of rain. Run backs, we will into this room. He will have a fantastic evening. Thank you, first lady, he worked very hard on this. It will be a beautiful evening. Really great job. Thank you. [applause] President Trump please. Mark thank you, mr. President and mrs. Trump. We thank you for the warm and generous welcome we have had in washington in this great home of the american presidency and your home. One of the many things the president and i share in common is a passion for the jobs. The Job Performance in the United States, the jobs created in australia, the jobs that change peoples lives. When people get a job, they have choices. In australia and the United States, we are committed to creating jobs. Whether it is trade or looking to the future, we want our people to have those economic opportunities. I commend the president on the great work he has done creating jobs in the United States. We are doing the same thing in australia. If we want to keep creating jobs, this partnership is a big part of it. We share objectives in some areas. We share common values. We share beliefs. We share a wonderful century together. Now, we will have another wonderful century together. Thank you, mr. President. Thank you for the opportunity for discussions today. We are looking forward to the state dinner this evening. Mrs. Trump, you are doing Something Special tonight. As the president said, perhaps the first ever, that is a Great Innovation which is part of this wonderful visit. President trump thank you very much. It is a great honor. Go ahead, please. Mr. President , you have been andtiating with the chinese they might offer some agricultural purchases. Will that be enough to get a deal done . President trump no. What you need to see to get the deal past the finish line . President trump im looking for a complete deal, not a partial deal. China has started to buy our agricultural product. Over the last week, some very big purchases. That is not what im looking for. We are looking for the big deal. Weve taken it to this level. We have taken in billions of dollars in terrace. China has devalued their currency and are putting a lot of money into their economy. They have a bad economy now. I do not want them to have a bad economy. It is the worst in 57 years. Two weeks ago, it was the worst in 22 years. Now it is the worst in 57 years. Their supply chain is broken up badly. Companies are leaving because they cannot pay the soon to go to 30 tariff. Tariff at aher slightly smaller number on other, on about 300 billion worth of goods and products. They would like to do something. We are talking a little bit this week, a lot next week. Top people will be speaking the week following. I am not looking for a partial deal. I am looking for a complete deal. [indiscernible] President Trump i dont think i need it before the election. People know we are doing a great job. I have rebuilt the military. Scott and i were talking about that. When i came in, our military was depleted. We did not have ammunition, ok . Our military was in very bad shape. We have rebuilt the military. We have one of the strongest economies. Mike pence, our great Vice President , was talking yesterday and called me and said these consumer numbers are incredible. The retail numbers two days ago that were not reported were incredible numbers. You know that very well. That is your world. Some other numbers. We are doing very well. Our economy is very strong. China is being affected very badly. We are not being affected. In fact, we are taking in many billions of dollars. China is eating the tariffs because of the devaluation. That does not happen with all countries. China is china. They know what they are doing as well is anybody. Our relationship with president xi is a very amazing one, very good one. We have right now a little spat, but i think we are doing well. Our country is doing well. You look at so many different things. Look at all of the regulation cutting that allows us to do what we did. Look at what happened three days ago was an attack that takes out a big chunk of oil and the price goes up 5. It is now heading down rapidly. Years ago, it would have gone up 50. This was a blip. It has been really amazing what we have been able to do. I think the voters understand that. I dont to get has any impact on the election. If something happened, i think it would be a positive for the election. Basis, verysan bipartisan, i think that is important for our country. I would be willing to say it is a bipartisan deal. I think it is very important for our manufacturers, farmers, and even unions what the deal done. Hopefully, that will be put up to a vote very soon. There will be very little controlling cajoling of the democrats. The usmca is ready to be voted on. It is finished. Mexico has taken final votes. Canada is willing to do that anytime we want them to. They are set to go. Country. Hat for our it is a great deal. Thank you. For the Prime Minister, your economy to some degree is in crosscurrents between the United States and china. What you say to the president about your ideal outcome on a trade deal between the United States and china . Prime minister morrison the deals have got to be fair and sustainable. I think one of the things we have seen is are still benefited greatly from the Economic Growth in china. We have a strategic and free trade deal with china. They have grown to become the standard economy in the world. When you get in that level, you need to be playing to the same rules as the other developed nations. I think this is the new generation of deals we will see china do, which the president has been working on for some time. We wish him well in that process. There are some real serious issues that have to be addressed in the deal. Things like intellectual property. That is a big issue and needs to be addressed. We look forward to them achieving it and providing broader certainty and stability to the Global Economy which all nations will benefit from. President trump do, scott, a big deal with china, and it could go quickly, but it would not be the appropriate deal. It is a very complicated deal with intellectual property protection. I could leave lots out and have a deal very quickly. But we want to do it right. I assume andrew is a nice person. [laughter] thank you very much for hosting. , whatn china and tariffs do you say to Australian Businesses and to australian people who say your trade war with president xi threatens their prosperity . To the Prime Minister, a linked question, do you think australians are going to be Collateral Damage in President Trumps tariff war with china . President trump first of all, i look at numbers, i love numbers. The numbers of australia are doing incredibly well, unbelievably well. When we have a deal with china or not but when we have a deal with china because they want to make it perhaps more than i want to make it because i actually love the billions pouring into our treasury, billions and billions of dollars, we have never seen that before from china. And im taking care of my farmers out of that. Our farmers were targeted. They were targeted for 16 billion. I made that up to them. 16 billion, have tens of billions of dollars left over. Australia is doing very well. If we end up doing a deal, australia will do even better. We were discussing that. Australia would be one of the beneficiaries of a deal. In the meantime, i did tariff relief with respect to a certain product in particular coming out of australia. That is something we would not do for anybody else. This has been a truly great ally and we work well together. Absolutelys are fantastic, your economy is strong like ours. Tworetwo real examples of countries doing extremely well. Europe is not doing well, large parts of the asia are not doing well, china is not doing well. Prime minister morrison australia is in its 29th year of Economic Growth, which is an Extraordinary National achievement, and we will continue to grow as our most recent National Accounts demonstrated. Australia is also used to dealing with a complex and changing world, and that is why we have diversified our trade base, have been doing that for many years. Six years ago, when our government came to office, 26 of our trade was covered by agreements. That figure is now 70 . We will take that to 90 . That is opening up opportunities. And flows in the Global Economy and australia has built up a resilience through the broadbased nature in which we are taking our economy to the world. Australia has never gotten rich selling things to ourselves. We have always had an outward perspective when it comes to engaging our opportunities. A big part of what we have been discussing here are new opportunities in minerals, from tier technologies, space front tier technologies, space, this is where the jobs of the future will be. They will come to, and im confident they will with china will be one that will set a new bar in terms of how chinas economy then deals with a lot of these complicated issues in the future with developed economies like australia. We look on with interest. Ultimately, when we arrive at that point, it will put global trade on a stronger footing. President trump australia has been so focused on the economy, they do minerals, they have incredible wealth in minerals, coal, and other things. They are at the leading edge of coal technology. Clean coal is what we call it. It was very dangerous years ago, very bad for a lot of people. And you have rectified that 100 . I looked at your statistics the other day. Coal miners are very safe and australia. Its incredible what you have done. We are looking at when youre done. Prime minister morrison we could do a deal on that. President trump we will make a deal. Go ahead, please. Thank you. In the midst of these escalating tensions with iran, you named a new National Security advisor, robert obrien. What is he recommending to you in terms of dealing with the latest strikes on saudi arabia and the response . Secondly, you announce new sanctions on iran. Have we now exhausted sanctions in regard to iran . President trump these are the strongest sanctions ever put on a country. We are at a level of sanctions that is far greater than ever before with respect to iran. Today we did centralbank, as you know. They are having a lot of problems. Not only with us. They are having problems within their own country, may have a lot of selfmade problems. We are by far the Strongest Military in the world. Going into iran would be a very easy decision, as i said before. The easiest thing. Most people thought i would go in within two seconds, but plenty of time. In the meantime, they have a lot of problems within iran. Iran could be a great country, a rich country, but they are choosing to go another way. They will be sorry for that choice. But i think im showing great restraint. Some people respected, some people dont. Others are so thrilled at what im doing. Doont do it for anybody, i what is good for the United States, our allies. It is working out really very well. As far as robert is concerned, maybe you could stand up . Robert obrien has done a fantastic job with hostage negotiations. I think we could say there has never been anybody that has done better than you and i as a combination. We have brought many people home, quickly. Speed is an important thing i find with hostages. It is something i had dinner last night with the warmbier family. His family and some of his friends. We had 25 people over saturday night. We did that dinner in ottos honor. It was a beautiful thing. It was veryi it was very touching, really very beautiful. We talked about otto. People should have moved faster. Robert and i were talking about that. He was there for a long time. You have to move fast with hostages. All of a sudden, it gets very hard for the other side to do anything. Sometimes it is just too late. We got him of otto, home, but he was in horrible condition. What happened to him was actually incredible, horrible. You have to move fast. Robert and i have been successful. The reason i know him so well, i worked hard on hostages most president s dont do that, but i do. In almost all cases, american lives. We have also helped other people, other countries with their hostage situation where we have strength and they dont. These are great people and we korea,m home from north as you know. We got them home from a lot of different locations. Egypt. We get them home from many different locations. Turkey. President erdogan was very good. We got a hostage home. Our great pastor who everyone in this room knows and loves. We have had tremendous success. What surprised me, i dont think too many people knew robert. When it came time to pick somebody for the position, very critical time i had so many people i should not say this in front of robert. I had so many people that called the and recommended robert obrien. I think he will do a great job. This, he started about 12 minutes after he was chosen. And is veryth us much involved now with what we are doing. One quick followup in regards to iran. If sanctions dont work and a continue their maligned activity, any measures outside of a military option that could be taken . President trump i dont want to talk about that but i think the sanctions would work, the military would work, but that is a severe form of winning. But we win. Nobody can beat us militarily. Nobody can even come close. What we have done for our military in the last three years is incredible. All made in the usa. It is really incredible. Our nuclear was getting very tired. They had not spent the money on it. Now we have it in, as i would say, tippy top shape. Renovated, its incredible, and we should pray that we should never have to use it. Our military itself is in phenomenal shape. We have a great gentlemen, as you know, going to be taking over, joint chief of staffs. Joe dunford has been terrific, a friend of mine. Over. Neral will be taking we will have a little bit of a celebration both for joe and more for everybody. As you know, our secretary of defense has just come in, mark esper. He has been here for a short period of time but he has tremendous energy. That is what hes been doing for a long period of time, from the day he graduated, maybe from the day he started at west point, where he was a top scholar, etc. We have an incredible people. Steve mnuchin is here. We did the sanctions today, and i think they are the strongest we have put on a country. We would certainly never do that to australia, i promise you. [laughter] minister. The prime you have been tough on huawei, even under pressure, have been consistent with the ban, even though you say you have a good working relationship with china and are important for the economy. Do you plan to continue to support the United States and nursed and theyre tough stance against china, have you told the president about what you may do to help reach a fair trade deal . Prime minister morrison we have the most perfect of relationships with the United States, going back a century and more, as the president was reminding us this morning. We have a Strategic Partnership with china, this is the part of the world in which we live. Managing that relationship is important to australias National Interest. Can assure you, we will both always act in the National Interest of our countries. We will always put our countrys interests first. That means engaging countries in our own region, not just economically, but at a people level as well. We have a lot of operations that we do together across the world, militarily, and we will continue to do those. The focus has to be what is best for our people. That means a stable and secure region and the presence of the United States in the indo pacific. Is a stabilizing force in the region. That means countries can trade with each other, economies can develop, people come out of poverty. The United States has had a positive presence in our region. That is why we always Work Together because we share objectives. It is not a matter of the United States saying we need you to do this, or australia saying to the United States, we need you to do this. It is about shared objectives and looking through a similar lens. That naturally brings us together to focus on the things that promote prosperity. As i started out in my remarks today, we love jobs, the president and i. We like the jobs here and the jobs everywhere. When people have jobs, they tend to focus more about the things going on in their lives every day, making sure they can live peacefully with each other. One of therump things that is important, during our meeting, we discussed, what percentage of your military do you buy from us . The answer was we work it together, or about 100 . We make the best equipment, he understands that. It is a real elation chip. They buy 100 of their military. It is the biggest purchase since world war ii. 2 ofminister morrison gdp next year, and that comes from the lowest level since prior to the second world war. A lot of that is being built in australia, but also being built in partnership with the United States and other allies. It is an important part of what we are doing. David crow from australia was next. Thank you. Further on the questions about iran, mr. President , you have praised australias commitment today to deal with iran in the persian gulf. In your talks today with mr. Morrison, did you discuss further military action in order to keep the pressure on iran . What might those military action be, and what could australia contribute to that . President trump hold it one second, you will get a shot at your Prime Minister. I am sure you are looking forward to it. We didnt discuss too much on iran. More trade, china. We discussed afghanistan, where australia is helping us, where we are slowly reducing in afghanistan, as people know. We have been very effective in afghanistan. If we wanted to do a certain method of war, we would win it very quickly, but tens of millions of people would be killed. And we think it is unnecessary. Australia has been a great help to us in afghanistan. We are reducing in afghanistan. We are reducing in syria where we have taken over 100 of the caliphate. We have 100 . When i came and it was smaller, all over, but now it is in a position. I will not repeat what i said before with the prisoners, but we have thousands of isis fighters from our work in capturing 100 of the caliphate. We are asking the countries from where they came, whether germany or france or other countries, to take us to go back, put them on trial, do what they have to do with them. But the United States will not keep thousands and thousands of people for the next possibly 50 years or whatever it may be. It will be up to those countries. We went in, we took them down. The end,fighters, in were not very good fighters against the United States. But we have thousands of them and we want them to be taken over by germany, france, all of those countries from where they came. Mr. Morrison, on the same are you open to further military action against iran . Is the australian commitment solely contained to a freedom of navigation control exercise . Prime minister morrison as the president said, there are no further activities planned or restaurant requested from australia, so the question is moot. I want to congratulate the president , demonstrating previously, restraint. There are measures that he and the secretary have announced today, and they are pursuing those channels. Measuredrated, response that the United States is taking has been a matter for them. Arise forwhen issues us, as an ally, we consider them on the merits at the time, in australias National Interest. I think that is where it is heading. President trump thank you very much. Jennifer, first lady, thank you. I hope that you can see tonight, to the media, because it will be a beautiful evening in honor of australia and the more since. Thank you. [applause] been watching and listening to donald trump and australian Prime Minister Scott Morrison holding a joint press conference in the white house. A lot of talk about china trade. Perhaps the headline, the president saying he does not want a partial deal. Partialhe could get a deal right away but he wants to get a complete deal. Also questions to the Prime Minister of australia, are you going to be Collateral Damage . He says we believe in these to be a fair deal, basically supported President Trump. Also questions about iran and whether military options would be on the table. President trump believed sanctions will work. Similarly, Prime Minister morrison says he commends the president on his restraint to date. That is what was covered briefly. Ets bring back peter coy on capitol hill, we have kevin cirilli. Kevin, you are a keen observer of these News Conferences. What did you take away from it . Kevin first of all, you run very much on the administrations mind, President Trump not taking military action off the table but not something they are actively weighing. The second point with regard to those additional sanctions on iran announced the Treasury Department earlier, this really being seen as one of the last sanction measures the u. S. Could take after using an exhaustive list of sanctions against tehran. Last but not least, seeing the relationship between the United States and australia, particularly through the global lens, the australians have always been a key ally of the United States as it relates to search and with iran, and also with china. You for that tomorrow the end of the Prime Ministers was marx. Especially as it relates to huawei, the u. S. Has been able to rely on australia in a way that, frankly, the europeans have taken a different approach. David you heard what was said about the china situation, peter. It seemed like the Prime Minister was staying with the president on the dispute with china. Peter it is interesting, one of the selling points that morrison has coming to washington is that the u. S. Runs a trade surplus with australia. As we know, the president likes countries with which he has surpluses, doesnt like countries with which he has a deficit. Morrison making a big deal out of this, although two most economists, its not an important consideration. David to what point is is a zerosum game . The president asked about by more about china by more agriculture. Could that come out of australias exports . Peter yes. Another example is cold. To china,sells coal so there is an element of competition which neither wanted to call attention to today. A glimpse ofo got robert obrien, the new National Security advisor. He says between the two of us, we have gotten a lot of hostages and we are moving fast. That agility is something that the administration touts as their ability to move quickly, particularly on the issue of Foreign Policy. Assent, it would also give a political victory of asts to more hawkish views it relates to iran, russia, and china. Not much of an ideological shift from john bolton, but certainly, a new face in the administration, and the sense that he has been there previously. David both talked about jobs and the strength of their economies. President trump was very complimentary on how australia has done. The president mentioned oil. Blip withere was a the attacks in saudi arabia, but havedifferent era it would been different, and he says because of the strength of the u. S. Economy. Is he right . Global economic strength is one key factor in determining the price of oil. And australias. Is doing well, that will put a floor on the price of oil. The blip had nothing to do with that, it was all about the attacks in saudi arabia. Australia has the worlds longest continuous economic expansion. You have to wonder how long that could possibly go on. The primewas clear minister was committed to keep it going. It was nice the president complimented him on that. Kevin, give us a sense from the White House Point of view, we saw that earlier appearance in the oval office, what is the win that they think they got out of this meeting . Showcasing to the role that they still have a key ally on trade policy and also as it relates to Foreign Policy. From here, the president will be going to houston where he is hosting events with Prime Minister modi from india. Then next week, dominated by the u. N. General assembly. Inreasingly volatile period geopolitical situations coming out of iran, but the president able to showcase with the state dinner as well, that he can have a key ally with him, very much on the same page as it relates to Foreign Policy endeavors. David one of the things i took away from this, publicly, the Prime Minister is saying we stand with the u. S. When it comes to the u. S. China trade dispute. He referred to negotiations happening in washington. It looks like President Trump comes away with support from the australian Prime Minister, to get the right deal. First of all, i would focus not just on trade but on National Security. Australia and the u. S. Have very strong mutual interests in countering chinas efforts, extending into the south china sea, down the pacific and toured australia. They are also on the same wavelength, politically, both conservatives. Point,this is a key kevin, not just in southeast asia, but asia and the Pacific Islands, are feeling the weight from china. They are increasingly asserting themselves through the region. Respects,ia, in some a counterweight to that . Kevin not just with china but also the Korean Peninsula. There have been security concerns about chinas influence on the Korean Peninsula and how that shapes that region. I would pick up on something that both you and peter have pointed to. Essentially, chinas role in all of this. As we are reporting, as this is going on, there are chinese delegation talks happening in washington, d. C. , and there would seemingly be, at least from a public standpoint, the chinese backing up a little bit and signaling some goodwill with the latest talks. There are even reports that the chinese will be heading to montana on monday with regard to negotiating with farmers. David i cannot wait to see the video of the chinese trade delegation in montana. That will be priceless. Thank you. Withg up, real yield, Jonathan Ferro. Sign up for the balance of power newsletter at bloomberg. Com. Live from new york, this is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Jonathan from new york city for our viewers worldwide, im Jonathan Ferro bloomberg real yield starts right now. Up, a fractured fed delivers another rate cut as trade ties between the u. S. And china resume. Optimism driving junkbond toward a fifth straight week of gains. Yield hit 20month lows. The new york fed rolling out an old tool, funding markets signing some stability. A fractured fed meets a wall of skepticism. A lot of dissension in the ranks