Isterms of how the president able to use his authority and military force. Crippling. Said it is is it crippling on the ayatollah himself . I do not think of him is getting his American Express card out. Is this more symbolic . Evin a little bit of both this is where gets interesting. The u. S. Has already sanctioned virtually every sector of iran. There are not that many additional sectors or even individuals for the administration to target. On one hand, this is very much symbolic. Alsoe other hand, it is maybe even a sanction of last resort. David Michael Mckee is here with us. We have seen sanctions of all sort from this administration and other administrations. What is different about this one . It does strike me as different. Michael only that is the head of government. We have sanctioned about a thousand different entities in iran since this began, including individuals, companies, even ships and aircraft. They have stopped the flow of oil from iran. As kevin says, theres not much left. 80 of the economy is under sanctions. Earlier today the iranian spokesman said there is not much you can do to us. If sanctions were going to work, they would have done so already. We know the economy there is supposed to contract about 6 . Maybe this is a message to the ayatollah to say we can do this to you. , but itot have impact does show we are aware of what is going on and you should pay attention. David sometimes things we do in washington are perceived differently in the middle east than the way we intend them. Theres a lot of religion in the middle east. We have shia, we have sunni, we have a shiite leader in the ayatollah. How is it likely to be responded to in the muslim world . So far this has not been seen as a sunni shia conflict but it could easily become that if the u. S. Sides aggressively with saudi arabia and continues to isolate iran and now goes after the spiritual leader. That could be a problem because at that point National Borders do not seem to hold up as well as the religious affiliation of people. It would set us against half of the muslim world. , one of the cirilli things that has contributed to this escalation has been the activity we are asserting the revolutionary guard. The revolutionary guard reports directly to the ayatollah, not the president. Kevin precisely. As this announcement has developed, coming out of the oval office, we should note that the secretary of state mike pompeo is traveling abroad. Yes plans to visit in saudi arabia as well as to buy as well as dubai. It comes at a time you have the secretary of state traveling trying to meet with various sanctions various factions to build that support. I want to note candidly when i talk to sources on capitol hill, not just republicans but also democrats, nobody is debating whether or not iran should have a Nuclear Weapon. I am hardpressed to find any lawmaker who reads iran should have a Nuclear Weapon. They are just debating which course of action to take. David we will go right now to playback of what President Trump just sit in the oval office. todays action follows a series of aggressive behaviors by the Iranian Regime in recent weeks, including the shooting down of u. S. Drones. He shot down a drum. Everyone he shot down a drone. Everyone saw that one. He has done many other things aside from the individual drown. And thethe tankers other things which were not good enough appropriate. This of claim the Supreme Leader of iran is responsible for the hostile conduct of the regime. He is respected within his country. Areoffers overseas there regimes most brutal instruments, including the revolutionary guard corps. Sanctions imposed will deny the Supreme Leader and the Supreme Leaders office and is closely affiliated with him in the Office Access to key Financial Resources and support. The assets of Ayatollah Khomeini and his office will not be spared from the sanctions. Represent aes strong proportionate response to irans increasingly provocative action. We will to continue to increase pressure until the regime abandons its dangerous activities and its aspirations, including the pursuit of Nuclear Weapons, increased enrichment of uranium, enrollment of the sick ,issiles, support for terrorism and belligerent acts directed against United States and its allies. The agreement that was signed was a disaster. It was not doing what it was supposed to do. Many bad things were taking place. Most importantly, it was so short term that within a short number of years they would be able to make Nuclear Weapons and that is unacceptable. Have a Nuclear Weapon. Also, we want the stoppage immediately of their sponsoring of terrorism. They sponsor terrorism metalevel nobody has seen. They have taken all of that money that was given to them by the past administration. Much of it was given out by terrorist organizations. I remember when john kerry was asked a question about whether or not this money will be spent for terror, he said yes, or at least he was referring to some of it. He said yes, it will be used for terror. We are giving them money and saying yes it can be used for terror. That was not a good answer. That was the least of it, frankly. America is a peaceloving nation, we do not seek conflict with iran. I look forward to the day when sanctions can be lifted and iran can become a peaceful, prosperous, and productive nation. That can go quickly. It could be tomorrow. They could also be years from now. I look forward to discussing whatever i have to discuss with anybody that once to speak. In the meantime, who knows what is going to happen. I can only tell you we cannot ever let iran have a Nuclear Weapon and it will not happen. Secondly, and very importantly, we do not want money going out to sponsor terror. They are the number one sponsor of terror anywhere in the world. I will sign this order right now and i want to thank our military , i want to thank all of the people that have been working with me over the last months on this. A lot of restraint has been shown by us. A lot of restraint. That does not mean we will show it in the future. That we wanted to give this chance, give it a good chance because iran potentially has a phenomenal future. I say that about north korea, too. I think north korea has a phenomenal future and i think iran also has a phenomenal future. A lot of people would like to see them get to work on that great future. I will sign this now and i appreciate your all being here. Thank you. Thank you very much, everybody. Mr. President , is your goal to negotiate with iran . To betrump we would love able to negotiate a deal if they want to. They might as well do it soon but obviously the people of iran are great people. I know many of them. I was in new york. I know many iranians living in new york and they are fantastic people. I have many friends that are iranian. It is sad what is happening to that country. The deal should have never been done. It was not ratified by congress. It was not properly done. It was incorrectly done. We will get it properly done. We will see what happens. I hope it will be for the good. The people in iran are great people. All of the people i know, so many new york are great people. Anything else . The u. S. Response to the iranian shooting down the drone . Pres. Trump you could probably add that into it. This was something that was going to happen anyway. Will you take additional action . Pres. Trump i will not say what i should do. What is your message to the Supreme Leader . Message is he has the potential to our great country and likely. I think they should do that rather than go along this destructive path, destructive for everybody. We cannot let him have a Nuclear Weapon. He says he does not want Nuclear Weapons. A great thing to say. A lot of things have been set and it turns out to be not so. He said openly he does not want to have Nuclear Weapons. If that is the case, we can do something quickly. Thank you very much, everybody. Weve been listening to President Donald Trump in the oval office recorded just a few minutes ago. He recounted the fact that there would have been a tax on the drone as well as tankers and that Ayatollah Khomeini is responsible for it and therefore he signed an executive order imposing sanctions on the Supreme Leader as well as his office, saying they will deny him access to critical financial funds. At the same time he said the iranians are great people. He is always open to discussions. He is hoping there could be discussions. Lets go back to kevins really in washington. You are listening to this and i was thinking there are reports the president has gone back and forth about a military response. Is this a victory for those who set lets pursue a different course . Kevin yes. The president openly forecasting the divide of ideological the ideological divide within his administration in terms of the advice he is getting. Case in point john bolton. Coupled with the executive order the president just signed regarding additional sanctions against iran, he also forecasted via social media on twitter that he is calling on the to comeional Community Together in terms of the strait of hormuz. That is where the u. S. Believe the iranians attacked six ships traveling in international waters. That was the message from iran according to the sources i talked with trying to forecast they could have negative impacts on the energy sector. The president calling on the International Community to bolster the money that they finance regarding protections for international waters. Now signaling he is still very much going to pursue various routes while he weighs military action from an economic standpoint with additional sanctions. David thank you so much for reporting from washington, kevin cirilli, our chief washington reporter. For more on iran we are joined by democratic congresswoman Stephanie Murphy of florida from capitol hill. We wanted to talk about Election Security but we have to talk about what we just saw in the oval office. You have initial reactions . Rep. Murphy we are seeing an escalation in the tensions between the u. S. And iran. Im not quite sure what the goal is, what the strategy the administration has laid forward. When asked he says maybe he is up to discussing, maybe not. That weit is important have a Clear Strategy to move forward. Otherwise, how do we harness our resources to be able to pursue that outcome . When the president talks about wanting to see allies participate, he also understands the is unilaterally withdrawn us from the jcpoa, he has unilaterally acted in a lot of different ways that does not engender the kind of leadership that would encourage our allies to walk rate. David do you give him credit for not having gone the connecticut route . The kenetic route . He is pursuing something of a diplomatic route through sanctions. Rep. Murphy im glad he did not pursue the genetic the kenetic route. There are many who want to skip the diplomatic route and go straight to war. That is dangerous in that region , with iran and their capabilities. What is problematic is the way in which it happened. He did not call that back until we had already launched the jet. Something broke down in that decisionmaking process for it to be such a lastminute decision. We should not be putting men and women in uniform in harms way and then changing our minds at the last minute. Problems inhere are the decisionmaking process within the administration. David lets make that turn to why you are coming on, that is the security of our next election in 2020 which is something i know youre quite concerned about. Your proposed legislation with other people in your blue dog caucus. Tell us what you are seeking . Rep. Murphy i represent florida. Of ourrevealed that two counties were hacked by the russians. The one thing that is indisputable in the Robert Mueller report is the russians systematically tried to interfere in our elections. I think it is important that we passed legislation to address this issue. The proposal i have is called the alert act. It would require timely notification of the state, federal, and local level when there is foreign interference in our election systems. For us, it took two years and my requests to the fbi for us to even learn about the fact that the county had been hacked. We saw the initial information in the Mueller Report and then got Additional Details when we asked for information. To this day, constituents in florida still do not know which counties were hacked. That is unacceptable. Americans are used to the standard that when they are hacked, whether that is their credit card or their social media, that there is timely notification. When it comes to voter notification, i think they deserve the same rights. David the group of bills you put forward would suggest we require states to use some means by which we can go back and audit after the fact. Is there a danger of federalizing the election . Some people are sensitive about that. Rep. Murphy i believe the federal government has a role in supporting state and local election offices to ensure they develop systems that are auditable. The primary tenant of our democracy are free and fair elections. , then we can ensure that that undermines our democracy. There are bad actors trying to hack our elections. We need to Work Together with the state and local entities to make sure people can be sure that when they cast their vote in an election, that it is counted. David at the same time, you have a number of colleagues who are talking a lot about impeachment, possibly pursuing impeachment. Is this an alternative that says lets not worry about the past, lets just look forward . Rep. Murphy im not sure it is neither or proposition. Inton carry on oversight the other parts of the Robert Mueller report. We have to respond to what we can all agree on, which is that the russians interfered in our elections and we must respond. I want to stand for reelection in 2020 against a fellow american, debating ideas that matter to my constituents, not running against some russian agents. David let me ask you, let me ask you about where we are on the budget. We have those caps that are under the original proposals about the automatic cutbacks under discretionary spending. Are you willing to make a compromise on that to say if you will relieve us from the caps, we will make progress on entitlements . Our leadership is in conversations about what the appropriate level for caps should be as well as the debt ceiling. At the same time, we are working on appropriations bills. The house is trying to do its set us up up so to for the best possible situation to avoid a shutdown. Our primary responsibility is to fund the government and make sure we provide the services and care for our veterans, our seniors, and working families. That is what were focused on. David just to cover the entire water pond, the usmca, we are waiting for congress to ratify it. It has been reported that House Democrats are the stumbling block. Is that going to get done, and if so, when . Rep. Murphy i would not characterize House Democrats as the stumbling block. There are specific issues of concern when you to address around enforcement, labor, and the environment. We are not for any old trade agreement. We need to make sure this trade agreement has the best possible terms. Theres a path forward where we are working on resolving those issues. Ambassador lighthizer has been a great partner in working with congress to resolve the remaining issues so we can all get to a place that we are comfortable this trade agreement is the best for the us economy and supports our constituents. David Stephanie Murphy, thank you so much for your time and patience. Democrat from florida and cochair of the blue dog coalition. Steven mnuchin is at the white house right now speaking about the iran sanctions and more. You can watch that on the bloomberg. From new york, this is bloomberg. David time for a check on the markets and for that we turn to emma chandra. Emma we are looking at a mixed session in the u. S. Dow jones in the green throughout the session, up. 2 . Mixed for the s p 500 and the nasdaq, swinging between gains and losses. Lets call things flat. Weterms of what is moving, are looking at Consumer Staples in technology, the leader for the s p 500. Energy and health care are the laggards. Falling for a second day. Lets look at some of the movers. Significant gains within the Consumer Staples sector. We are seeing moving toward growth stocks. Maker ofa altrea, traditional and ecigarettes. The makers of Household Goods all rising. Kimberlyclark with the best day in three weeks. Procter gamble shares hitting a record. If you come into the terminal, a nice chart that shows you how we are seeing the move from investors into more defensive sectors. The fact we are seeing them pay more for premium for those defense sectors versus more value stock. That red dot showing the premium for defensive stops is at the highest in six years. Other big movers, i mentioned health care not doing so well. This on the news from Bristolmyers Squibb and celgene. Bristolmyers said they would divest one of celgenes topperforming drugs. This is a bit of a surprise to analysts. They were not expecting that happened. Bristolmyers saying they are doing that to get the deal between these two done. Lets take a quick look at oil. Falling a little bit after conflicting messages from the president. New sanctions on iran bu