Expensive year of executive actions. But we begin with the tsa looking to expand mobile device checks on u. S. Domestic flights. What are we talking about here . What we are talking about here started on sunday when the department of Homeland Security issued a new directive announcing new rules requiring u. S. Bound passengers from europe, africa and the middle east to go through security and turn on their phones in front of Security Officers proving, presumably, that they are in fact real and not disguised explosives. Now bloomberg is reporting that rule is being expanded to apply to u. S. Domestic passengers flying within the United States according to people familiar with the matter. The rule is not officially at and i spoke to a couple of tsa officers here who had not heard of it. What we are being told by bloomberg sources is this would be limited to certain passengers and would be used more sparingly than overseas. What prompted this . Have we had issues with people using fake mobile devices . That is the big question. We dont know the reason. Specificas not named a point for announcing that directive. We do know that authorities have been on heightened alert from terrorist activities from al qaeda groups in yemen and syria. Questions do come up now, what is this about the Homeland Security secretary, jeh johnson, speaking on meet the press says that he hinted rules like this would be coming out but asked we not over speculate. Sometimes they ratchet up the rules and sometimes they ratchet them down. This week, we see theyre making things tighter at airport security. Thank you for talking to us about that. I guess we will experience that if we fly into the us with a mobile device. Now a bloomberg exclusive republicans have taken issue with president obamas decision actions thistive year going as far to threaten him with a lawsuit he on what the senate pseudonym for and one in the Supreme Court. Numberspublicans have to back up concerns about executive actions and Phil Mattingly has more on this. Republicans are working on a number of Different Levels trying to counter what the white house is used to route this year to basically get around congressional gridlock. What we have from one republican aligned policy shop as they have gone through what every executive Branch Agency has done the rulemaking side of this thing this year and a pulled estimates of costs. The total is 104 billion. Why does that number matter . As biggest thing is republicans look for ways to push back against what the administration has done, hard data is valuable. Its valuable for floor speeches. What they are trying to do is underscore the fact that with these regulations come to cost and the cost is being driven by the obama administration. That is one is a try to rally their base that they feel like they can head on going forward. House push with the on the lawsuit, trying to push back against executive action and do something john boehner hinted at again today at a press conference. Every president does executive orders. Most do them within the law. What we are talking about our laces were the president is real writing rewriting the law to make it at his own needs. That put these together actually broke them down agency by agency and you see from the top, big numbers. The energy department, more than 50 billion. The epa and the Treasury Department responsible for the volcker rule more than 4 billion. Were republicans emboldened by the Supreme Court decision to overturn the president s recess Appointment Authority . Without question. I think it was Perfect Timing from a messaging perspective. It was shortly after john boehner circulated the memo saying they were going to work to see the president. Things are they directly connected to one another . No, but they fit together in a narrative republicans like and think is true and accurate going into november. To see you are going them hit on it over and over again. Is this the kind of thing that all residents seem to do at the end of their second term, go crazy with pardons and executive powers . Or is this the kind of thing the white house takes seriously and would consider curtailing their behavior on . I dont think the white house is thinking about curtailing their power. I think they feel like they are on solid legal ground and they are thrilled republicans want to have this fight over action versus inaction. What you see throughout history as the president has the ability to take executive action. Hes going to check with his counsel and the justice department. If he feels like hes on solid legal ground, hes going to go for it. They single appearance president is making, hes hammering home the fact they are threatening a lawsuit and that hes working unilaterally. They love this issue and theyre going to keep pushing it regardless of what republicans do. But thank you for that. The president cant do everything on his own. Hes asking congress for nearly 4 billion to deal with the flood of young immigrants trying to get into the country. Peter cook spoke with republican senator rob portman and they talked about the immigration issue as well as his issue his interest in running for resident. Portman says he is still reviewing the president s request. Faxed my concern about it as i dont know that it comes with the plan. The president has yet to give a sayingational address this should not continue, to send the message loud and clear to parents in countries like guatemala and el salvador, countries sending these kids, many unaccompanied, to the United States and our policy is not to accept these kids as citizens and in the misunderstanding is they could bring their families up. We do have an immigration system in this country and it will be for enforced. It will be enforced. Flow into stem the addition to dealing with the aftermath of a failed policy. The president is making the case as he did in texas, that this makes the argument for comprehensive immigration reform. You did not support it last year. Why is he wrong and why isnt this the right example for forgiveness . Theres nothing in the immigration policy that he supported that would have kept this from happening. More would have provided guards along the border. And they would have accepted these kids just as they accepted the ones that came in this time. Its not like they snuck through the desert. They were excepted because of a lack of enforcement and policy. Know, the system is broken and should be fixed. I think its got to include enforcement. Fornother big Issue Congress to deal with this what to do about the exportimport bank. It sounds like a lot of House Republicans have no interest. They basically say we will help you compete in the global economy. All of our major competitors around the world have their own programs to help with financing. Board all of them have a Generous Program than we do. They will say i cant compete company has ather Financing Mechanism its more effective than ours. Id like to see some reforms in the xm bank proposals will stop i like to see the United States be much more aggressive telling countries in the world lets reduce the subsidies on exports, which is something ive thought for what i was u. S. Trade representative kirk. Lets not shoot ourselves in the foot. It hurts the workers in ohio and around the country. Do you think you get done this year . I think it probably does in the senate, but i dont know about the house. It would be too bad if were were to tell u. S. Workers were not going to help you to be able to keep your job, not just keep your pay but increase your pay and benefits which we ought to be having in this country. Right now, were seeing a reduction because we are not creating the environment for for companieson to survive in the marketplace. Dooru seem to open the more than a little way for running for president in 2016. Im planning to run for reelection in ohio. There are a lot of issues right now i feel passionately about. I think our economy is in trouble. I know our fiscal situation is not sustainable. We are on the wrong track as far as these fiscal issues. I want to continue the fight and i plan to do that, assuming i win my election in 2016. Im going to look at the president ial field and if there are not republicans talking about the need to rot and appeal to our party and be more inclusive, i might even change that but right now im planning to run for senate in ohio. Peter, what sort of reception would the gop give portman as a president ial it . This is someone who is really respected in the party. Hes been a u. S. Trade representative and a budget director. Hes sort of the consummate establishment republican candidate and to some extent thats a plus but is also a liability in this environment. He is not a bomb throwing conservative. Hes not that flashy and is a supporter of gay marriage. That puts him at odds with some republicans out there. This is a guy with a lot of ties to the business community. Hard to think rob portman would not be taken very seriously should he choose to run. The question is does he jump into the ring . That depends on who else decides to run. It is a huge swing state politically. Concerned,oards is we were simultaneously hard rogan and disgusted by lebron betrayal and moving to miami. What does portman have to say about him coming back . I said he may help bring the Republican National convention could he bring lebron james back to cleveland . Hes not using his political influence, but he is certainly a supporter. To see itn would love happen. A lot of people had just forgotten what happened before. Topic andn is the louise iteris is one of al hunts guests on political up, a globaling economic perspective. While europe is floundering in chinas growth slows, the u. S. Economy is steadily rising. We will look at whats driving growth in the u. S. The u. S. Economy is in its sixth year of expansion. The latest bloomberg surveys looking at 3. 16 growth pace for the second half of the year. That would be the First Time Since 20042005 gdp had extended such gains will stop my guess is the senior trade professor at Cornell University and author of the dollar trap. He joins me now from ithaca, new york. Welcome back to bottom line or cap let me ask you what you think about this u. S. Economic recovery. A lot of people would say the job numbers we have been seeing dont tell the full story. On the other hand, weve added monthhan 200,000 jobs per for five or six months in a row. Its taken us a long time to get to where we are right now but right now, the u. S. Economy is on the cusp of a much more durable recovery. When the crisis hit the u. S. Economy, the u. S. Put in a very aggressive set of policies to fix the Financial System, move forward monitoring fiscal policies and we are beginning to see the payoff. The labor market took a long time to catch up. See general signs of strength. Rise inr concern is the consumer demand in particular was being born along by financial optimism getting ahead of the real economy. But now the real economy is catching up and we have better days to come. How much better . We hear warnings from Christine Lagarde from the imf telling washington how to run fiscal saying she thinks we will be running the lopez. Should we heed those . Running below pace. Its premature to start withdrawing fiscal and monetary stimulus. We have artie draw up withdrawn some because of budget discussions in congress. Withdrawing monetary stimulus is premature at this stage. But early next year, we will see a normalization of the Interest Rate cycle and the economy can handle that. The big question is what happens in the rest of the world. The u. S. Economy is somewhat protected from what happens in the rest of the world. If you have trouble breaking out in europe, that would put more pressure on the u. S. Economic recovery. Let me ask you about europe. And portugalissue where the parent of the secondbiggest bank there missed a payment, defaulted, call it what you will. Is spooked the markets, but not that much. We still had a global collective sigh as far as gains are concerned. The eurozone stable . Does mario draghi have everything under control there . If theres one part of the World Economy that worries me in terms of its potential for creating risk around the world, it is europe. A lot of progress has been made there in terms of the school positions and putting in place Structural Reforms. Recentuntries like portugal. But these reforms are not fully in place yet and the Financial System is not fixed. There is a lot there that could come home to roost if growth starts slowing down. Even countries that have taken action the fiscal front like greece will be left with large levels of public debt. They are by no means competitive yet in that poses a real risk to the economy. Fax will they have a longer new normal . We are finally emerging from that here. A multiple to take of time for europe to get out of theirs . Europe has spent a lot of lyrical capital undertaking reforms and belttightening. But they started from a very difficult place and still have a fair amount of go fairmount to go. The hope is growth will pick up significantly. Growth is beginning to bottom out, even in some of the weakest economies. Donenk a lot more will be on the financial front in particular, but the more rock later market labor market still has quite a way to go. What if you look at japan . Upthese three pillars hold economically . We have finally seen it unleashed with the Prime Minister indicating a broad range of reforms to improve the economys flexibility and competitiveness will stop the key thing is the Political Capital that will certainly be needed to push through and implement reforms. Certainly now theres a good sense of optimism about japan because Monetary Policy is firing hard on all cylinders and is the policy is somewhat supportive. Finally we see Structural Reforms being looked into place. Thank you so much for joining us. Ill stop for joining you come on, we will talk about your take on china. Up next, we will get you on the markets with the aid from julie hyman and this live report. Im Jon Erlichman at sun valley names like Warren Buffett and Sheryl Sandberg here. The personk about who helped with the google driverless car issue and google glass. Nice talking about education. Thats coming up. Puerto rico is looking for investors to solve a slow economy and staggering unemployment. Stephanie ruhle shows us opportunities for growth and talks to the islands governor but he would how he will solve the massive debt problem. 9 30how airs tonight at eastern here on bloomberg. It is 26 minutes past the hour and a means bloomberg is on the markets. But lets take a look at stocks right now, coming off the lows of the session with the selloff caused by concern about a possible default and portugal. Not trading as low as we were earlier. The individual stocks were watching, some of it is earnings related. Family dollar is under pressure from carl icahn. They missed the forecast and the Business Review is still ongoing. Openompany still lance to 525 new stores while opening 400. Carl icahn would like for someone to step in and buy family dollar, but its unclear who that would be. United Continental Holdings mother stock we are watching all stop shares climbing after announcing each seat flown a mile rose more than analysts estimated. The improvement in domestic routes was what southwest reported and airlines as a whole are on the rise today. American airlines also reported yesterday, talking about margins that would be better than estimated. A good couple of days for the airlines. We will have or on the markets in 30 minutes. Welcome back to bloomberg online. Im matt miller in for mark crumpton. The hunt for yield has made speculative grade loans quite popular. But if buyers ask for their money back all at once, it may not be so easy to get it. Some analysts are saying they should watch out. Lisa bromwich has been following the story and joins me now. Lets start with the difference between junk loans and junk bonds. Not a lot of people think about this. There are number of professionals that work on it, but for the layman, whats the difference . They are not interchangeable. Junk loans are not security. Junk bonds are. When you trade a loan, the there are paper documents that lawyers, backoffice staff have to sign off. It could take two to three weeks to complete the trade of a junk rated loan. Bonds on the other hand are securities and you have to get your money back within three days. It is a pretty big stink chen even though they are both speculative grade that. But one is a security and one is an asset. Init traditionally has not very liquid but is increasingly liquid. How big is the market if its getting increasingly liquid. Im guessing its doing it bigger. There has been a run of money from investors. It swelled from about 750 billion in the u. S. Market. That is more than switzerlands p annually. Bondmparison, the junk market is about 1. 3 trillion. So its a comfortable size and theres been a rush of individuals and to mutual funds and Exchange Traded funds. They have been coming and partly because loans are paid to floatingrate benchmarks. There is a junk loan etf that is very popular. It makes it easier to trade and is more liquid than trading the underlying paper. But here is the problem it easier to trade the shares of the next rain and Exchange Traded fund. But if the underlying takes two or three weeks to transact, if you buy a loan it would be difficult for an etf manager to keep up with. Herein lies the rubble. We are in a time where the cycle could be changing. They are seeing the risk of people mo