Transcripts For BLOOMBERG Bloomberg Daybreak Americas 20170614

At 10 00, we will get weekly crude inventory numbers from the u. S. Which are expected to drop. At 2 00, it will be the fed decision followed by Janet Yellens press conference 30 minutes later. We will bring you live coverage starting at 1 00 p. M. Today. First, we want to give you a preview of that decision. And so, we turn to mike mckee in washington. Mike, there is not much suspense on what they are going to do on the rate. What are we looking for . Mike it sounds like a cliche, but it is about what they do and not what they say. We will look at the soft patch to see why they need they feel the need to raise rates anyway. What are they going to say about unemployment . It is now below where they were projected in march. The cpi numbers could be very important, because they have to explain what is going on with inflation which has dropped off significantly. Is it going to continue to drop . If so, why do they think so . This all has to do with what wall street takes as its forecast. And move theher fed farther away from what wall street things will happen with Interest Rates over the next year. David single in on the economic outlook. They come out with this every time they make a decision, but for the most part it does not change very dramatically. Do we expect a bigger changes today given the Economic Data we have been seen . Been seeing . Not in thebly economic forecast. You may hear Something Different from the janet yellen when she speaks. People want to know why we are not generating inflation at this point. 49now we have g number which shows inflation starting to turn down again even as unemployment continues to fall. That is not supposed to happen according to the phillips curve, which is what they follow. How do they explain that . Jonathan you will be at the News Conference. What will be the first question for janet yellen . Mike people want to know why financial conditions are getting looser. Then beforeser now they started the tightening cycle. Does that mean they have to go faster to get where they want to be and avoid being behind the curve . That will be a key question for wall street going forward. Jonathan i want to bring in the chief equity strategist here. Doto stick with this you stick with this . There is no news as far as the rate, but Everyone Wants to know if september is more or less likely. If september is on or not on, but the fed is not going to answer that. Everyone will try to read between the lines on the issue. Jonathan it is difficult, mike. We want to know what kind of data they are looking at. We caught up with charles on the fed communications policy. Take a look at this. Thatat it really means is any datacan look at they want and decide if that is important to a policy and change their minds. I think it is important to be data dependent, but you need more information on how they are going to use that data and what data matters. Dependent,o be data do you see a hard ship from janet yellen to continue that line given that the data is softer . Use thaty not want to line. The fed does not want to raise rates. They believe wages have to accelerate at some point based on where on based on where employment is going. They want to get rates higher in case they need to react to a downturn in the economy. They do not want to use the Balance Sheet anymore to do that. Want to gett, they the Balance Sheet reduction underway. They would like to take advantage of the opportunity that they have. Has to september, that is where we have the possibility of a Government Shutdown in a debt ceiling fight, all kinds of things going on in the economy. A Government Shutdown and a debt ceiling fight, all things going on in the economy. David the Balance Sheet is another dimension to this decision. What is the likelihood they will take a pass on september in raising rates and instead focus on the Balance Sheet . Class i think this is a real challenge that investors have been figuring i think this is a real challenge that investors have in figuring this thing out. Move and, it is a fed therefore charging charting the course is we are in uncharted territory right now. We need the fed to give us more clarity on what it is. It includes the Balance Sheet, but we do not know how much. They really have a big communication issue. The more they can address this issue when is no what exactly we need to know what exactly we are looking at and be more steadfast than that, because they will otherwise confuse the markets and markets will not like that. David a lot of people in the markets are asking for that clarity. The only argument would be that they have not come to final decisions yet. They could give us broad outlines. They could codify what we already know which is that they will start by tapering their reinvestments. They could give us certainty on that and tell us maybe when they want to start without giving us all the operational details. They have said they would like to get that information out a couple of months before they begin, so that the markets can begin to price that in. That would in june, have everyone on wall street thinking they are going to start this in september. If they want to wait until september, it is more likely you will get the details in the september meeting. Jonathan with financial conditions quite easy, and the economy on stable footing, why would the fed not want to address the Balance Sheet issue sooner rather than later . Months andt a few financial conditions are weaker, they will lose their window. Is there something stopping them from getting on with this already . Te they think the fed funds ra is too low. They have said they would like to get it higher. They wantficials says to get it at least halfway to their terminal rate which is about 3 last check. Like to get closer to 1. 5 before they get underway with Balance Sheet normalization. If they could not started because the economy turned down, i do not think they would necessarily call that a bad thing. They do not want to use the Balance Sheet what they have started to wind it down. If they have not started yet, then it is probably ok. Can you fuld this into the bond market for me . We are more concerned with the longer end of the curve. It is to this issue of inflation. We were up at 2. 6 on a 10 year bond yields. We are now at about 2. 2 . That should be a disappointment considering the economy has lost its verb. The question is the broader yield and much less the short and as an equity investor. Of thewhat do you make fact that inflation seems to be tapering off rather than growing at this point . Waste pressure does not seem to be there like they thought it would be. Mike it is not following the script. Script. Ips curve how much lower to the have to go beyond 3. 4 for it to happen . People on wall street want to know. The fed keeps saying it will happen. The disinflation we are seeing, people want to know it is transitory. How long can they keep that up . You will likely hear janet yellen talk about that today. Report withweek job hundred 38,000 jobs, but i think with 138 thousand jobs, but i think a big part of that story is that even though the demand for the labor is there, there is not as many people to put to work. Ple have been on in on have gone on and on about measuring unemployment, but the labor market is behaving as if it is tight. My take is that you are going to see this inflation pick up, but it is not going to do it slowly. We are going to wake up and it will be a bit higher, and the fed will be in an uncomfortable position behind the curve. I think people are going to miss as a sign jobs report of weakness when it could be something very different. We are neard the end of a cycle comparatively. That is why the fed looks past the job creation numbers and at the unemployment rate. They are wondering how much lower it could go. Mike, thank you for joining us from washington. Jonathan, think you for joining us as well. Live from new york, this is bloomberg. David this is bloomberg. I am david westin. Attorney general Jeff Sessions testified before the Senate Intelligence committee. Mr. Sessions was adamant that he did not know anything about any alleged collusion between the Trump Campaign and the russian government. The suggestion that i participated in any collusion with the russian government to , which i havetry fought 35 years to honor, to undermine the integrity of our credit process, it is an appalling lie. The assertion that i did not answer the question honestly at my confirmation hearing, that is false. Decidedlyre was a different tone to this testimony. Democrats really went after the attorney general. At that it was interesting in a sense of how folks are reacting. Democrats are i think it is interesting in a sense of how people are reacting. Democrats are naturally unhappy. He did not comment about private conversations he had with the president , but he did not say that was executive privilege. He is just trying to keep those conversations between them. Republicans are saying that this was a hearing that was largely nothing, that no new details emerged. This is very much going to continue regarding the russian probe even as the administration wants to pay that to the to pivot to other things such as the Apprenticeship Program they will announce today. David perhaps what is most important for Financial Markets and businesses is what Steve Mnuchin was testifying about in front of the senate budgetary committee. Here thatt a plan markets reacted to. I totally agree with you. Policy is very important. Yesterday, i interviewed david purdue about that committee hearing. He said he has been anticipating new executive orders or new directives coming from the treasury department. Of weeksnly a couple on capital requirements. The treasury secretary releasing the report earlier this week calling for more regulatory policies. D regulatory policies deregulatory policies. Right now, he has not put on putank reform doddfrank reform on his schedule yet. Things are moving slowly in the senate. A very slow timeline written out in the senate for deregulatory policy. David so jonathan, that is all true about doddfrank and congress. Still, it is true an interesting what still, it is interesting with Steven Mnuchin said they could do it without congress. Jonathan the markets tried to dismiss the drama out of d. C. Jeffery gardner lack has taken an exception. If you are a traitor or expect or speculator, i think you should get into cash today. Literally today. Byrteries are now clogged secularory forces withs, which when combined low negative yielding safe assets, promised to stunt u. S. And Global Growth far below historical norms. Do you agree with any of that . I think the richest asset is cash. The idea there is a lot of risk out there, we are at the end of a multidecade buildup of debt. If you ask me what is the preferred asset class in that environment with outstanding debt, it is probably bonds. I do not think people are realizing that inflation was running for to close to target, so that means in the United States that the shape of the yield curve is the same. The cash is burning relative to inflation. We have had a good rally in treasuries. There is room for consolidation, but i think you are in an environment that is still a ways off from the next recession, probably a ways off from the next crisis. We should still be extending on the yield curve into the credit sectors and stock market. Jonathan in terms of the treasuries being down when you hear a lot of people talk, these levels sound quite abnormal. But they have become quite normal, havent they . Yes, the inflation rates are going to go up. It strikes me that this is a world with a lot of excess supply. People are still waiting for which is to catch on for wages to catch on. The Central Banks are really acting as if there inflation targets are ceiling in terms of their behavior. David what is the risk of the fed overreacting . At think they are trying to es, so that in hik the next recession it can simply cut rates. The idea of what is in the plot at the end of this year, that you are going to execute the hikes and get to a neutral level, it is really not growing at that impressive of a rate. I do not think that makes sense. I think you will get the rate hikes from them. The big risk is going to be next year. You make youro investments today given your analysis . Fax i think the biggest question is going to be where this cash and up at the end of next year. Moderateeither have growth and inflation or lower growth and inflation. Jonathan given how high credit spreads are, are you nervous about that . Sure, but it tends to spread wide and rapidly in a crisis. They then narrow rapidly towards the mean, and they continue to get tighter. Things going on here one, people have not been in the markets for half a generation, let alone a generation, have seen how tight spreads can get. In the past, we have seen yields get significantly higher. You need to get paid for your credit risk, do not get me wrong. Very low levela of yields, and i think there is a lot of latitude for people to keep seeking that or some time. Jonathan we have listened to bill gross talk about scary markets many times, but we have carried on going tighter. Why is this year any different . The skepticism is kind of music to our years. If you have everyone to our ears. Board,have everyone on then that is kind of a sign. People are looking for a recession when it frankly the normal excesses are not there. David lets look at another possible opportunity or risk, that is china. There was some data that came out of china the other day. Earlier today, frank and analyst told bloomberg hes concerned about services inc. In services in connection with the internet. They have now taken at about 20 of the total Internet Usage in the world. This is where we are looking. The thankful thing is that the chinese internet companies, the bigger ones, are making money. That is a big change from a we had in 2000. So, that is where we are looking. We are looking at the servers the servicebased economy. David so, we have two different views of china. What do you make of china . China is a important. It has been the single biggest driver of world growth in recent years. The trend there is towards moderation. People are concerned about a crash on the financial side. I think you have to hand it to them, it has been amazing how long the growth has gone on. It has defined the skeptics. The rate of debt extension is incredibly high in china. So, some moderation appears inevitable. Is the moderating part of growth. Rich, andery capital as the markets open up, i think we will continue to see chinese investors diversifying. There flows will be an important part of global investing. Jonathan what is the recipe for the reflation trade . They say a big dose of chinese reflation. A you still identify china as positive ingredient when it comes to inflation trade reflation trade . X i think you will see commodities like i think the commodities are looking softer. They are kind of rolling over. Things like copper jonathan is it more than just a supply issue . With the copper bounce, it could be just the temporary disruptions there. Generally speaking, there was a huge wave to increase supply on the commodity side. We will likely have 20 of commodities around for a while. I think the reflation trade have plenty of commodities around for a while. I think the reflation trade will keep going higher. Think the 265 level was very attractive. I think we are probably around neutral levels right now. We will stay tuned and keep an open mind. I do not talk too much about current positioning on portfolios, but i think the problem people have is coming in hearing the comments today, the is, in hearing the comments today, the longterm david the long end of the curve, if it went up, what would drive it up . I think a very dovish head at the fed might create some expectations for higher growth. The other is that the administration seems very concerned with pushing out treasuries. Possibly going out further in terms of what treasury insurance. That could create some pressure. Jonathan thank you for joining us. Coming up, an allstar lineup to talk about the upcoming that decision. Fed decision. That will kick off at 1 00 p. M. Eastern time. With futures city, firmer, you are watching liberty tv. Bloomberg tv. Jonathan from new york city, you are watching bloomberg daybreak. Lets get you up to speed on the markets open. Futures are positive by about 0. 2 . They are also up on both the doubt and s p 500. The dow and s p 500. Technology is where the outperformance is for the last couple of days. We are seeing some stabilization. We are up 14 on the dax we are up 1 on the dax in germany. Beforein the 10 year that said decision as a rate hike is expected. The euro is in little bit softer. Some marginal strength in the pound against the dollar. As get you caught up on first word news. Left get you caught lets get you caught up on the first word news. A lawsuit filed against President Trump saying that he is filing the constitution by accepting foreign money through his business empire. In london, Authorities Say at least six people have been killed in a fire that engulfed a 24 story apartment building. They say that the debt told is going to rise. Survivors who escaped from the tower said they heard residents screaming for help, and that some of the residents jumped from their apartments. Many have been taken to local hospitals, and several are in critical condition. There are reports that President Trump has delivered a surprising condemnation of the Health Care Bill passed by republicans earlier in the year. They told republican senators and the bill is mean, that he wants them to come up with a bill that is more generous. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. I am and that chandra. Chandra. I am emma this is bloomberg. Jonathan the wage on u. K. Households intensifies. We are seeing further pressure on theresa may after an election cost the conservative party its parliamentary majority. We are joined now by dan hansen. Dan, lets run through the data and you tell me what the story is currently. I think you summed it up rather well, john. Yesterday, you saw a very strong inflation trend going up at about 2. 9 . Payaw nominal regular growth come in at 1. 7 , so you have a real squeeze coming through. At the same time, the interesting thing happening here is that unemployment continues to heat record lows hit record lows. Growthowth, nominal wage is just not responding. Do you have to add in the big dose of Political Uncertainty to explain what is happening in the labor market . It certainly on the wages side. I think argument so, certainly on the wages side. There is an argument to be made that which is are being held back because of the uncertainty. I think it is seen across the economy. Even before the election, we were calling for uncertainty to be a real drag on demand growth. For a to permeate throughout the economy. With the election for it to really permeate through the economy. With the election results, that may grow further. Jonathan i just want to know what the owner carney has to say about this about what Governor Carney has to say about this decision. Decision, you the can guarantee they will hold steady. The fact of the matter is that the data we have gone through is speaking of keeping a very consistent response. Growth is likely to be week over the course of this year into the next. Over the course of this year into the next. He is going to want to stay the course. The bank of england put a lot of weight on the fact that there actions in the aftermath of the pen thedum helped dam effects of uncertainty. I think hes just going to want to stay the course. Jonathan dan hansen of bloomberg intelligence, great to see you. Isning us now from london j. P. Morgan chief market strategist. And others. Stephanie, lets start with you. A political story is emerging. A series of former prime ministers are encouraging theresa may to reconsider her approach to brexit, to maybe collaborate more with other mps and other parties. What does this mean for the brexit negotiations coming up quite soon . Acting there are two messages coming out of the last few days. I think there are two messages coming out over the last few days. With the conservative party, there is no appetite for another election anytime soon. I think we can expect this government to last for a reasonably long time. You are absolutely right. We do have clarity on the government for a while, but no clarity on the position of brexit. Theresa may has said that she is still on plan with what she said in her speech in january. What we would consider a hard form of brexit sketched out there. There are a lot of voices calling out for a more measured position. I think we are going to discover that there were reasons she took that harder position. That middle way between being in the eu and completely out where you have the advantages of the Single Market but not the disadvantages europeans have said they are not really willing to give that to the u. K. So, there is some concern about the Economic Impact of exit on the u. K. , it might turn a little more optimistic on the news of a softer brexit. We will have to see if that is a credible option. David there have been a number of voices. Is there the potential for a deal . Giving up some, not all together, on immigration . Also, writing a check to the eu and remaining in the Single Market . Is there some deal there when you put together the tories with a sort of Labor Unity Party . I think there has always been evenority in parliament before this election, but there is still no sense on the other side, from the europeans, that they are willing to accept that kind of compromise on the key principles. The basis of his Single Market is full freedom including labor. They did not get any leeway today when we talk about the thepect of europe leaving eu. Now that they are formally committed to leaving, it is hard to believe they have a better reason to offer compromise. Emmanuel macron was a little devious talking about the door still being open to theresa may last night. Still, they are not talking about doing special deals and allowing britain to have their cake and eat it. The base case is high levels of uncertainty for u. K. Politics. That translates into asymmetry of risk with the sterling. We do not see the sterling being a strong currents he as we go forward from here. Risk oneing political that side as we saw with the brexit vote last year. Concerns our buyers when it comes to u. K. Equities. There is more positive economic momentum in europe, and the Political Risk momentum is positive. In the u. K. , you have the opposite of that. Onis clear high asymmetry the sterling which supports that investors should look to where the fundamentals are stronger. View that youour should stay away from u. K. Equities right now . Or are there selective places where there could be bargainbasement prices . It is a big call. If you are talking about investment directors for theynational investors, are looking at the u. K. With in the u. K. , we think there are some wellbuilt equity hedges for international investors. , liquid u. K. Companies that have high levels of international exposure. They often, with a strong Balance Sheet and cash flows, or they come with high, defendable dividends. So, there are some attractive parts to this the has some inbuilt hedging against u. K. Politics. I think the choice is there. Isn with in the u. K. , there a way to hedge naturally this this clinical risk. David our guests will both be staying with us. Coming up is more on decision day for the Federal Reserve. For all our viewers worldwide, this is bloomberg. Emma this is bloomberg daybreak. Coming up at 1 00 p. M. Eastern time today, special coverage of the feds decision on Monetary Policy. Not your Bloomberg Business flash. Now to your Bloomberg Business flash. We could see a purchase of yahoo internet properties. Ceo Tim Armstrong is expecting it to cost about 15 of the combined staff. The largest u. S. Pension fund is considering pay raises for as much as 5 for its Top Executives and investment managers. Forfund is being criticized this decision. They admit that the pay hike could trigger negative public perception. The squeeze in the u. K. Is getting worse. Annual growth rate is at about 1. 7 at the end of april. That is the slowest pace in two years. Taking in inflation, which is actually for wages fell. David still with us is stephanie and jonathan. Stephanie, i want to start with you. As we look forward today to the fed decision one thing we are all struggling with is the relative lack of wage pressure despite being close to full employment. We heard the numbers from the u. K. Where there is a lack of weight pressure. Of wage pressure. Is this a worldwide phenomenon . I think it is. I think this is something we waited to see after the financial crisis. We waited for a country to push unemployment low enough for it to be domestically generated inflationary pressure. The inflation pressure we are getting in the u. K. Is the same we are seeing now than what we have seen in the past. We are seeing much the same in the u. S. , although there is maybe a bit more of an uptick when it comes to underlying wage pressure. There is this question of why labor has lost its Bargaining Power across the board when it comes to the normal rules of unemployment and inflation. I think that is something the fed is now thinking about anne has toy and weigh. They might be suggesting they dont need this Monetary Policy anymore, but the inflation side says you do not have to raise wages on a strict timetable. They are not very sure what to do, and so might as well be predictable. So, the rate hike today is predictable. David what is the central bank to do given that . Some point in time, you may start to think there has been a structural change in the labor markets. Happens, what does that tell Central Banks about Monetary Policy . I think it tells you what has been discussed in the past when it comes to the Interest Rate being changed in some lasting way. It tells you you can probably keep rates lower for longer. That the rules you had in the past about what kind of rate increase you need to produce what kind of slowing of the economy image is not function anymore. Economyt letting the run hot as janet yellen has said , but they are at least giving it some margin to allow for that wage growth to happen and put money in peoples pockets while Encouraging Companies to raise productivity. We saw a very flat productivity number for the u. S. In the first quarter. That is a part of this. You look at the Federal Reserve compared to the ecb, is this another reason to buy european equities . I think we see both central which isa similar path slow and progressive. The fed is moving slowly but progressively towards higher rates. The biggest risk for equity markets and other markets is that that normalization happens very quickly. Years ors about two three years behind as europe generally is. Pursuing to bel as we go towards pursuing qe. I do see similarities there. I think we could see investment rates going up quickly, and that means funding remains super cheap. You have an attractive cost of labor where for the first time in five years we have a move to in terms ofed world gdp growth. Is significant. We have had five years of disappointing or mixed growth. We are seeing indications now for the first time in 10 years that all countries are seeing some earnings growth. We think there is some support for equities. Jonathan looking sector to liker, what does it look for equities it ecb maintained a slow removal of accommodation . Aggressive art of short time ago. The value gap is now sort of gone. Are improving the positivity for banks. It is the european profit cycle that really makes you want to look at banks. Bank profits could be up this year. European banks are back generating profit again. We want to thank stephanie and jonathan for being with us today from london. If you have a bloomberg terminal, check out tv. You can watch it online and interact with us directly. Respond. Will this is this is bloomberg. This is bloomberg. Jonathan more trouble for amber as they remain in the spotlight for their Corporate Culture for uber as they remain in the spotlight for their Corporate Culture. This comes after news that ubers head will take a leave of absence. Ofwill see submissions recommendations for change to change the Corporate Culture. Today, so york times far, we have been hailing failing to hold uber accountable. Their growth has remained largely untouched. It revenue has tripled in the past year. Joining us now to talk more effect is scott. Tell me about the brand of the business and whether this can be turned around at this point. Thank you. It is good to be with you. I think so. I think uber has so much Consumer Loyalty that the damage is significant, but there will , and it will not be on the consumer side initially. I think you are also going to have some trouble you are going to lose the fight for some key employees, especially women who want to go to a company that appears to be more balanced and progressive. Jonathan if you have uber right now and you want to go somewhere else, is that looking good . We are in a capitalist society, and people will overlook issues. I think they overlook to a too great extent with executives. I think uber will be just fine. It is the Top Executive that is the problem. Handshowing up at the all a meeting signifies he is at odds with the whole board. Jonathan we have been talking about a series of Tech Companies that remain private and are waiting to go public. Does this sort of just delay the inevitable . I think there is a bigger issue keeping them from an ipo. That is because a company with 6 million in revenue 6 billion in revenue and loses 3 billion, they probably do not get the Public Market evaluation they have received in the private markets which would be difficult for the latest round of investors to stomach. I think there are more financial obstacles getting in the way of an ipo right now. Jonathan is there a lesson here that in entre nous or cannot necessarily become a great ceo . With Mark Zuckerberg. Ist of the exception he sort of the exception to the rule . What makes you a great manager are typically not the skills you learn at ube at uber. The ceo is a bit of a maverick, and some of those attributes have gotten him in trouble. I think there are very few people who can go from a to z. I think it is because Mark Zuckerberg surround himself with a lot of adult supervision. It is rare to find someone who can spend the entire growth span of a company can the entire growth cycle of the company. Jonathan scott, think you so much. Scott galloway of new york diversity. David we are getting reports of a shooting in Northern Virginia at a congressional baseball practice. These are early reports. We are hearing it is perhaps rifled shots that were fired at a congressional baseball practice. We want to be very careful about this. There has been a shooting in Northern Virginia at a congressional baseball practice, and we will follow details in this very closely as to any casualties. Jonathan more on that news as it comes through right here on bloomberg. As we count you down to the market opened, futures are slightly firmer. City, you are watching bloomberg tv. Jonathan breaking news to get you up to speed. A shooting reported at an incredible a congressional baseball practice in virginia. There are multiple victims that have been taken to hospitals. Virginia Police Investigating a multiple shooting, a shooting reported at a congressional baseball practice in virginia. David joining us now is mike mckee, Bloomberg International economics correspondent and Kevin Cirilli, both on the phone. Both are in washington. This is on east monroe street, which is in alexandria, just north of the beltway. Down on its way to mount vernon, in fact. So mike mckee, what do we know at this point . Mike so far, we dont know a lot. Republicans and democrats faceoff every summer in a congressional baseball game. Practice was underway and gunfire directed gunfire erupted. There are unconfirmed reports that one congressman has been hit and five people in total have been hit. Virginia police on the scene, one report that the gunman is in custody. That is all we know. David the reports i am having our that the police are not yet confirming the congressman was hit. Kevin, do you have more . Who spoke with one staffer told me that investigation obviously is immediately ongoing. There is no confirmation but they are working with the police. We should note that this is a weekly meeting of Top Republican lawmakers in the house of representatives who gather towards the spring and the summer to have these outdoor practices. It is a tradition, a bipartisan tradition of republicans and democrats. Really one of the few times in congress where Something Like this happens and where lawmakers are able to meet in a nonpolitical setting. Top republicans, members of these congressional baseball so clearly this will no doubt rock washington today but all of this is very much ongoing but i cant stress enough just ield thised of a f is for republicans and democrats, how unique of a tradition this is in the congress and again, it is just something that is a way for lawmakers essentially to work before they head into the office. So clearly, this will have an impact on washington. David so just a reset for anyone who might be just joining us, there are reports that there has been a multiple shooting in Northern Virginia, in alexandria, at a congressional baseball practice. There are possibilities of people being hit, including from congress it self. We dont have that confirmed. I want to come back to you on that. You said it is relaxed. If there are senior representatives, from congress, would it be likely any of those would have security with them . Kevin typically, Top Republican officials in the house, especially members of leadership , do travel with security as secure,it is not as you know, as the president who travels with the secret service. So the lawmakers in the house of representatives do not travel with the secret service but the security surrounding these relaxed environments is not as intense as Something Like the president ial or even to some extent cabinet level officials. But there is a security presence at these events, at these types of junctures, but really this is a baseball field in a suburban area, a suburban virginia, in alexandria. It is not the capital. It is several miles outside. You know, in virginias suburbs. It is a baseball field. David it drives down along the potomac on its way. It is residential but there are also parks and a part where you can run along the potomac, very bucolic. We have a report breaking right now that sean spicer has said the president and the Vice President have been made aware of the development in virginia. Mike mckee, back to you based on your long experience in washington. Does anything come to mind on this order of magnitude in the capital . I cant think of this sort of event. Mike we have not had, in my memory, a shooting that involved a member of congress that a few years ago, a man did break into the capital with security and shot a security guard. The capital was lots down and people were in their offices were sometime until it was confirmed he was in custody but it has been quite a while since we have had anything that involved official washington. We dont know for sure the details. We dont know anything about how or why this might have happened but it is very unusual to say the least. David Kevin Cirilli, to come back to you, to get a little bit of an assessment, what might it have been like, due to what is going on on capitol hill . There is a lot of hearings being held right now one very important policy matters. Could this disrupt or delay some of that . Today the focus will be on the investigation as well as the safety of the individuals who are impacted by this. Think, in terms of policy, you will remember the shooting in time ago,ite some several years ago now in which there was that shooting in a political rally. And i think the police force that were present at todays police todays baseball game is also going to be of shiftsnce as this debate towards policy. But right now the details are still emerging. The breaking news is still breaking. The importance of this baseball game and we should it is too early to speculate, so i dont want to speculate but the importance of this baseball game, this congressional baseball game, the bipartisan nature of this baseball game will only be of more importance when it actually occurs. Jonathan i want to get you up to speed on some of the reporting happening elsewhere. Republican mo brooks speaking to several news outlets importing that including cnn and the Huffington Post, saying five people were hit including one who was shot. This is it appears some security detail members were injured. They shot back at the assailant. Field toed on the transport the injured. According to mo brooks, we are secure. Oft is a republican member the Congressional Baseball Team speaking to several news outlets. David we dont have that confirmed but if it is him, he is the number three ranking republican in the house of representative. ,e is the majority whip republican for louisiana, the dean for the louisiana contingent in the house of representatives. A very important part of the leadership. Kevin cirilli . Kevin yes, i am here. David stick to the importance of Steve Scalise. Kevin he is one of the Top Republicans in leadership. Someone who drives policy, someone who is essentially House Speaker paul ryans righthand man. Someone who is the driving force making sure the votes are there on issues like health care, on tax policy, on any type of policy that the white house needs. He is the middleman and the importance of him, think of him in the terms of the way the house of representatives inset is set up. He is essentially the coo, working directly with speaker paul ryan, having meetings weekly if not daily with congressional members who are able to craft policy. This will just completely this is not a partisan issue. I cant stress this enough. It is one of the few times in congress where lawmakers are able to really let down their guard and work out together. This is, again, in a residential area in Northern Virginia. And in a park, and open space. Typically, it is filled with pedestrians on the weekend. With bike trails. S will definitely send this is definitely going to have an impact on washington. Jonathan according to mo brooks, the republican member of the Congressional Baseball Team, at least five injured including Steve Scalise, a staffer, and two guards. He is speaking to cnn and the Huffington Post. Representative brooks saying Steve Scalise was shot in the hip. It raises all sorts of questions, including the uncontrolled. David we had this with Gabrielle Giffords when she was shot. Typically, nothing has been done in the end, but this was reportedly a rifle, not a handgun. Security guards returned fire. There were reports that they had the suspect in custody. We dont know yet. We are trying to give you as much information as we have without going to far. Mike mckee, what do you know . Mike we dont know much and the key thing is that we dont know much at this point. So much has been said about terrorism and about crime and gun control but we have no idea what brought this on, who did it or why. The reports are that a rifle was used and the suspect was wounded and has been taken into custody. Five people were shocked, including representatives the least representative scali se, the number three republican in the house of representatives. He was transported apparently by helicopter to the hospital. We dont have any reports on anyones condition at this point. Nor have we seen reports on what is happening at the capital but you would expect it to go into a higher state of security at this point while they try to figure out what is going on. To your point, this will throw the congressional agenda into disarray for a while until they can get a better handle on what is going on. They are running out of time to get a lot of things accomplished. This could be a major development, politically as well as a major criminal development. David mike mckee and Kevin Cirilli, we will be back with this story as it develops. This is bloomberg. David we are continuing our report on this breaking story outside of the capitol in washington where there has been a shooting at a baseball practice. This is in alexandria, virginia. Five people are injured by a rifle shooter. There are reports from some news organizations, we have not yet confirmed that one of those hit was Steve Scalise, the number three Ranking Member in the house of representatives on the republican side. He has been transported to the hospital. We dont know what the condition is this point. We do know the suspect is reportedly in custody. Running is now is an androgen. Anna anderton we have breaking news developing. What do we know at this point . Well, we have details coming in that Alexandria Police have confirmed the incident. Representative mo brooks who was also at the baseball game is saying it was Steve Scalise of louisiana who was shot in the hip. Congressman nearby gave as much aid as they could until police came and the security detail fired back at the shooter and it appears the shooter was shot as well. David do we know what other members of congress may have been there . You mentioned mo brooks as well as Steve Scalise. Do we know anyone else . Anna Brad Wenstrup was there. Physician, one of the first ones to administer aid to Steve Scalise. And jeff duncan was at the baseball game before but he left before the shooting began. David do we know anything about the shooting victims at this point . Anna according to reports, Steve Scalise was shot in the but we dont know his condition. He was airlifted to the hospital. Anna do we know what hospital . I dont anna . Playing in alexandria, virginia but i dont know which hospital he was taken to. David do we know anything about the condition of the shooter . Anna it appears that he was shot by congressional Security Forces but i dont know what condition he is in. David can you give us some sense of what is going on in the Capitol Building itself . Have they gone into lockdown . Anna i have not gotten up to the hill yet. It is still early. It is pretty empty around 8 00 in the morning but i am sure there is going to be a lot of discussion about this and a lot of discussion about guns and i am sure there will be pushed back on using this as a political moment to talk about that but it is still pretty early. We are getting details about this, but it appears that there were a group of congressman and stackers. Staffers. There was a big group from the hill and i am sure there will be a lot of outreach sent to the other people that were affected. Jonathan we are light on details at the moment but we can say, according to representative mo brooks of the Republican Party on the Congressional Baseball Team, five people were injured in a shooting when House Republicans work practicing for the upcoming congressional baseball game. Steve scalise was the third ranking House Republican and among those injured. Brooks said the security detail fired back at the shooter and representative Brad Wenstrup scalise. Mo brooks heard as many as 30 shots. We have not confirmed this here on bloomberg. This is representative mo brooks speaking to several outlets. David mike mckee, you are covering the fed decision but this story takes precedence. Do you have a sense of what is going on at the capital and what is going on at this hour . Mike we dont really. It is very early in the morning for capitol hill. Security does seem to have increased a little bit but it doesnt appear that the capital is on lockdown at the moment. We had a number of shooting incidents or gun incidents at the capital in the last 10 years or so. Event i was talking about earlier where a man came into the capital, firing, and killed those go Capitol Policeman before he was subdued. No shooting in the capital itself since but just last may, in 2016, a man was arrested after pulling out a gun in the capital Visitors Center. And there is the get real out of tucson, arizona when she was shot. We have a report that two of the people who were wounded were Capitol Police who may have been on security detail at the congressional baseball game. So they did have security there, apparently, with them. We have another report that representative steve pearce of new mexico was at the practice but he has put out a statement saying he is ok and praying for the victims at this point. David as we wait for more information, obviously it has been the Alexandria Police on the scene and now we are getting some live video now. It appears to be of the field where the reversal was happening. The rehearsal was happening. They look like policeman gathered around. At what point does this jurisdiction shift over to the fbi . David i remember the Gabby Giffords situation, it doesnt stay local very long. We have a congressperson who may have been hit. Mike it will probably shift fairly quickly to the fbi and the atf because it involves a federal official who was shot. There are all kinds of protocols about how the various Law Enforcement agencies in the Capital District respond to things. I am sure that there will be federal officials on the scene shortly if they are not there already. Alexandria police were the first to respond as that is where the shooting was but this does bring federal officials into it. David what we are seeing now is alexandria city police. You see the police tape up and there appears to be a ball diamond back behind where this practice was going on, not the game itself. The game was going to happen at nationals park. David senator rand paul, a member of the team, speaking to a news outlet, saying that he heard the shooting in rapid succession and everyone likely would have died if not for the police. He heard 50 to 60 shots. Whatgoes against representative mo brooks says, saying he heard as many as 30. Others say there were quite a few. To aor rand paul speaking news outlet in the United States saying he heard a rapid succession of shots and everyone likely would have died if not for the police. The New York Times reports as many as 50 shots were fired and it was right around 7 20 this morning according to the New York Times. That is what they reported about what happened. So thank you very much to bloombergs Kevin Cirilli and Anna Edgerton. We will go to break now. We will stay on this breaking news story. Jonathan breaking news in the last 30 minutes. A shooting reported at a congressional baseball practice in virginia. This is what we know according to representative mo brooks who was on the republican Congressional Baseball Team. He tells the Huffington Post five people were injured in the shooting and House Republicans were practicing for the upcoming congressional baseball game. He tells cnn that Steve Scalise, the third ranking House Republican was on those injured. Was among those injured. The third ranking House Republican was among those injured. The security detail fired back at the shooter. Representative Brad Wenstrup, a physician aided Steve Scalise who was shot in the hip. According to brooks, there were as many as 30 shots and senator rand paul, also of the Baseball Team, telling another news outlet it could have been as many as 50 to 60 shots. He heard a succession of rapid gunfire and if not for the police, everyone would have died. So far, as we know, according to representative mo brooks, he has told the Huffington Post five people were injured and one of those was Steve Scalise, the third ranking House Republican among them. David we are hearing from various staffers about who was not hit. We have kevin graves, chair of the ways and means, he says he is safe. We are starting to hear about who was not hit. Steve scalise was hit. We are now going to bring in ron how scout. He has spent years in the fbi to be assistant director under robert mueller. He joins us on telephone. Thank you very much for being here. Ron good morning. David what do you know about the shooting . How are these things handled typically . Ron i dont know any more detail than what is already being provided on multiple outlets here. Statute thatderal gives the fbi the jurisdiction. In matters involving assaults and killings of federal officials. Men and women are certainly covered under that. You are going to see a vigorous fbi response to this so you are likely to get the fbis Response Teams to be processing this and trying to interview all of the witnesses to put the pieces of this together and see what the motive was and see if there are other participants, whether there was something bigger going on. To a ball field in alexandria, which is a fairly low Crime Community at this time of day, with a highpowered weapon and a lot of ammunition, is very troubling, indeed. David one additional these of information, Virginia Police have a suspect in custody and that suspect is not a threat. We have some reports about people who were not hit, senator jeff duncan says he was safe although he was at the scene. The fbi may take jurisdiction at this point. Normally, when you have Something Like this and some of it like Steve Scalise who is the third Ranking Member of the republican side in the house, what kind of security detail would be there . This is not a secret service issue, right . Mr. Hosko it is not. It is a Capitol Police issue. Of course, many of these folks have staff traveling with them but what you have is a concentration of membership, as likelyd today, and it is it actually occurred that there would be some Capitol Police security people traveling with them just to make sure that the situation is stable. Very seldom are you going to have anything more than an aggravated constituent that wants to have a conversation or a debate with a congressperson, so Something Like this is far out of the realm of ordinary. You go back to the shooting of Gabrielle Giffords and a federal judge and others in tucson, six or seven years ago, and you know, it gives you one example of how these things can break bad when you dont have advanced intel of a problem. And you have very light or no security and you have somebody with a weapon in a case that was severely mentally ill. Here, it could have been that were something more in a various. When you raised the shooting of representative giffords, as far as you know, with a review at that point of the security needed for members of congress as they went to things like political rallies or even, believe it or not, a baseball practice . Have things changed or is that just too hard to do . Mr. Hosko it is very often too hard to do. I was in charge of the Criminal Division at the Washington Field office at that time and we had many conversations with the sergeants at arms on the hill and the Capitol Police to just relook at security, relook at the threats that were coming in , and very often, what appears in a congressmans office, it could be back at their home office, it could be while they are out on a campaign but looking at ways to make them more difficult targets. Aredifficulty is, as you trying to balance that, these are folks that want to be engaging with the public and want to be out there in the public eye and touching people and connecting with them. So it is certainly impossible to surround each and every congressperson with a secret service bubble, so you are left with evaluating threats, evaluating people who come in standard using and trying tores be threat and intelligence based. That could be hard to do. Jonathan i just want to bring in an editing, bloombergs to. Ring in Anna Edgerton the democrats were at their own practice at a separate field and when they got news of the shooting, they all began to pray right there on the field for their republican colleagues. Inxandria schools alexandria, virginia also sent a text message to parents saying that schools are in locked in, which means activity in the school continues as normal but no one is allowed in or out. We have Different Congress persons beginning to express their and allowances for those affected and beginning to get their best hopes for congressman scalise. I am about to head up to the hill in a little bit and get a reading on the scene there but it is still early. There was nobody at the capital at the time this happened. We will get more information as the day goes on. Jonathan now to our white house correspondent, Kevin Cirilli, who is down in d. C. As well. Lets get an update from yourself. Mo brooks, a representative on the republican Baseball Team speaking to several news outlets indicating it is wellknown the republican practices take place at the field. Have we got any indication of the motive and whether republicans were actively targeted . Kevin it is unclear of the motive of the attacker, the perpetrator of this crime. I just spoke with a senior aide to House Speaker paul ryan. They are referring to the Capitol Police as well as his security officials. They say they hope their thoughts and prayers remain with the incident. I spoke to senator cornyn on the me they arewho told still waiting for briefings on this matter. They are relying on news outlets at this point for new information. He sent his condolences to the incident. I spoke to the senior aide of runner rand paul of senator rand paul, a member of the team, who told me the senator is also responding with his condolences. Crime a moment of great and something that truly is ricocheting throughout the halls of congress as we speak. Many staffers have not even arrived yet. The shooting took place in virginia, Northern Virginia, in a large field in a residential area, a park area. This is a popular spot for people to bike ride, play soccer games as well as baseball games. This is a rare bipartisan, nonpolitical gathering, a tradition of sorts in congress for there to be this type of moment where you have a situation where lawmakers can talk to each other and people as people, not as politicians. Also, because it is a public area, it is something where there is not that heavy security presence. The helicopter arriving on the scene of the incident to help break up and dispersed the incident. I can tell you again, most hill staffers dont arrive to washington until the hours of 9 00 a. M. And 10 00 a. M. They get a slow start so many folks are still learning of the developments as they are unfolding and in realtime, both on the news and also through social media. I spoke with one staffer who said that they are all exchanging Text Messages with the staffers of the members trying to make sure that everyone is accounted for, that everyone is safe, that everyone is processing this and getting to safety. But again, many people still learning of the developments at this point. Jonathan we should stress the nervousness in d. C. Has not been affecting Financial Markets for anyone just tuning in. We do move on the Economic Data in the United States, i just want to take a moment to get everyone up to speed. The downside price on inflation and retail sales, treasury surge and the dollar rolls over. Some Economic Data in the next couple of minutes. Downsize price for inflation and retail sales in the United States. David in some ways the decision is coming up later on today. Kevin, i want to come back to you for a moment. Typically they dont meet this early in the capital but what do you know about the schedule today . Has it been changed . Are people coming into the office at all . Kevin as of now, people are coming into the office. As of now, nothing has been postponed or scheduled. The white house is set to meet with top ceos later for this warning. Head to thet will apartment later, sean spicer saying the president has been briefed and the Vice President has been briefed on this. I have just been hearing now from the senior aide to House Speaker paul ryan that the speaker has also been briefed. Shot. s has been we are getting full briefings on the situation of what is going on. But we should just take a step back for a minute and note that ise is very much wellliked amongst his republican colleagues, someone with a very congenial relationship even though he often finds himself in the middle of a backandforth. He is very much wellliked by all folks. In terms of the office environment, so to speak, here. We should also note the youthfulness in the halls of congress and the sense of young hill staffers arriving here. You get that feeling in washington every once in a while when an incident like this we havent seen an incident like aboutn quite some time that sense of congeniality, people checking in on each other. That is what is happening in capitol hill. Jonathan we have a statement from the president , donald trump says that the Vice President and i are aware of the shooting in virginia and are monitoring developers closely. We are saddened by the tragedy. Our thoughts and prayers are with the members of congress, First Responders, and all of his affected. All others affected. David now to the former fbi assistant director, thank you for being with us. Good morning. David you have heard about the reports. One of my questions is, if you are the fbi what message are you to members of congress . Are you telling them to curtail their activities . What is your reaction . That will be one of the things in motion right now, to make sure that all other congressional members are safe and secure. You just dont know what is happening here. We are in that fog of war stage. It is going to be that way for a little while. The Fbis Evidence Response Team is gathering up, getting the scene under control. Some of them may be there now and others are on their way and they will figure out what will happen but it does sound like the suspect is in custody. That will help a lot. David yes, the police in alexandria confirm they have a suspect in custody but i would imagine one of the first questions you have in Law Enforcement is, is this a lone shooter or might this be tied to Something Else . How do you figure that out . Mr. Swecker of course. Witness statements, getting the tryingy of the shooter, to quickly build out his social network, see what his person is all about as quickly as you can. There is a lot of Data Available where you can pull information quickly. People are going to talk to his friends, family and neighbors and that sort of thing. Vehicle is probably left behind nearby. And the weapon. There is a lot of information to run down. David i was saying, not even at the scene but i was saying how do you know it is not tied to Something Else that might be planned for somewhere else . Another location . Mr. Swecker i mean, you take that available information, somebody is talking to the shooter now. People are talking to the witnesses to see if there are any other individuals nearby. They are looking at everything there. The key person right now is the shooter himself and the witnesses at the scene. David we will turn to Kevin Cirilli on capitol hill right now and i can hear you have an update. Kevin i was just speaking with a senior aide to senator rand paul, a member of the Baseball Team, the Congressional Baseball Team and he told me that representative scalise was taken to the ground upon being shot in the leg or the hip area. Stable condition, we have learned, from the speakers office, which is directing officialso security as well as the police. The scene on the baseball field is one of immediate drama and crime. I am told the lawmakers were immediately dispersed. The helicopter arrived and they immediately evacuated and tried to get out of the area. But the moment of congressman scullys death congressman scali is congressman scalise very quick. Jonathan on this issue today, Vice President mike pence was nationaldress the association of homebuilders. Whether he still makes the address or comments after the shooting, that would need to take place. David one of the first part of the schedule that gets changed today. We will see. Now back to mike mckee in washington. Mike the Alexandria Police have put out a couple of statements. One that the shooter is in safe. Y and everyone is the timeline of what happened, Congressional Republicans gathered at delray park in alexandria. They were supposed to play against Congressional Democrats in the annual baseball game on thursday night. Representative scalise was on second base and a shooter opened fire and hit him and five other people. Two Police Officers were there on security dirty security duty returned fire and hit the gunman and he was taken into custody. That is all the details we have at the moment but we hope to have a statement for us shortly on what they know. Hill, back up on capitol if things are suspended as seems likely at this point in the house and the congress im going to go back to mike mckee. Do you know what was on the schedule for the capital for today . There were several hearings, budget hearings were underway with members of the cabinet. Up onw that was the basic capitol hill today. The secretary of state was going to be up there along with the secretary of defense but there is a good chance much of official washington will be placed on hold for the day while all of this is sorted out. The main event of the last is the testimony by the attorney general and the former fbi director. They are over. More work behind the scenes in the senate on a Health Care Bill, so that may fall victim to this as well. At least for the time being. As you mentioned, Vice President pence was due to give a speech at 9 00 a. M. We dont know if he is still going through with that. Security has been tightened at the white house and on capitol hill while all of the details are being sorted. As some of you mentioned earlier, the more you dont know what is happening, a lot of different reports about how many shots were fired and that sort of thing but in the next couple of hours it will become clearer. We appreciate that you are trying to support this as it is developing. David back to washington, have you heard about any changes and plans for the fed today . They had a big day and janet yellen was going to have a News Conference. Is that still scheduled to go forward . As far as we know that is still scheduled to go forward. The fed decision at 2 00 p. M. , the News Conference gradual for 2 30 p. M. Washington time. I would imagine a lot of this would depend on the details that come out about this but at the moment there does not seem to be any decision by the fed to change their plans. Jonathan to recap then, the House Majority whip Steve Scalise was shot at a baseball practice in delray, virginia. At least four others, according to reports, were also injured. That is according to a lawmaker. Police said on twitter a suspect is in custody. Now we have a former senior Law Enforcement official, a former nypd commissioner, bernie caret who served under mayor rudy giuliani. Good to have you here. No, i am told we dont have him but we were going to have him. Jonathan lets recap what we know so far. According to representative mo brooks who was on the Baseball Team, he told several news outlets the following. Five people were injured in a shooting as House Republicans were practicing for the upcoming baseball game. Steve scalise, the ranking House Republican was injured. David they give her much for being with us, commissioner. Head of thed as the new York Police Department for some years. You had to deal with terrorist related incidents. We dont know whether this had anything to do with terrorism. Give us your sense on how Law Enforcement response in the first minutes, our end day. Hour or day. Anything coming in now will be sketchy. Speculatets to whether this is terrorism or not. Inad to deal with 9 11 and the aftermath, since then, we andnumerous attacks attempted attacks around the country. We still to speculate in this case. Peopley was asking whether these people were republicans or democrats but it doesnt sound like terrorism to me. Butont want to speculate they have the shooter. I understand, he may still be alive. If that is the case, we want to know where he came from or what he was attempting to do, who is who his targets were, and we want to look at his background, his computers, his entire life will be sifted through as quickly as possible to determine whether he had other conferences, things like that other accomplices, things like that. The response, from what i am seeing, is a well planned out response. The suburbs of washington have been planning and preparing and practicing for these types of , so this isears now in alexandria, right outside of d. C. These guys are well versed in Emergency Response crisis management. I think the First Responders did a great job in getting on the field and getting people out of their. But we will see. It is early in the investigation. Jonathan i want to give you an idea of where of this thats where this is coming from. Where this is coming from. Ron desantis, also on the team, who left before the shooting has told foxnews and men walked up and asked if republicans or democrats were on the field. He was not carrying anything and it is unclear whether the person was actually the assailant. A lot of news coming in from various congressmen. But no real confirmation. David as always, the early information is not always reliable. We are trying to piece this together. Let me come back to you, and ask, peoples normal reactions couldnt we have prevented it . Are we to a place after the Gabby Giffords shooting where we have to increase security for our members of congress or is it just unrealistic to try to protect everybody all of the time . Unfortunately, it is pretty unrealistic that you are going to be able to stop every event, every time. You are just not. But you have to do the best you can. We have to be constantly proactive and preemptive in putting together plans and preparation for things like this. David that is former new York Police Department commissioner bernie caret. Back to Kevin Cirilli who is joined by a senator from connecticut. Kevin what do you make of this horrific tragedy that is unfolding with the Congressional Baseball Team . My heart and prayers go out to the Capitol Police. The members of congress and their staff may have been affected. Affiliationf party or political belief, we really need to send our hearts and prayers and do whatever we can for these families. Is such ahington partisan place but this congressional baseball tradition is something where politics are really set aside. There is an opportunity for lawmakers to engage as people. Just how important is this tradition and just how just talk about that, how much tradition it is. Sen. Blumenthal the political differences are put aside for this game. They have no place in baseball or sports but especially, this game gives us an opportunity to a littleand to take less seriously the everyday issues and take more seriously the friendships we have across party lines. Jarringincident is so and unsettling and really touches us in our hearts because these were wonderful people who were affected. Not just lawmakers but also their staffers. You know this, senator. Staffing environment in capitol hill, when you hear about these reports and when you think of young people coming to washington or families hearing about all of this, put that in perspective about what they might be feeling right now and just how nonpolitical a baseball practice is just a few miles away the Northern Region you. Sen. Blumenthal this game is nonpolitical. Mind theould keep in bravery and courage of the Capitol Police was supremely andrtant in saving lives protecting all of us, every day. People come here to work and should know that it is a safe environment. This incident is very much an aberration. Kevin in terms of security for today, in congress, are there going to be any changes . An increased security presence . Sen. Blumenthal we have received no briefing. There have been no words about changing security practices and we have votes later in the day. Kevin and why is that important . Sen. Blumenthal we have work to do. We have hearings that need to go forward and fortunately, the shooter has been apprehended. No lives lost as far as we know at this moment, but we have to consider security procedures. Kevin i know you are very busy, just a final question. How important is this congressional baseball game now . Sen. Blumenthal i think the congressional baseball game now will have even more importance. Kevin maybe the game is what Congress Needs right now. Thank you so much for your time. We very much appreciate you coming on to bloomberg. David, back to you in new york. Jonathan just to recap the news, if you are tuning in, the third ranked u. S. House republican and at least four others were injured wednesday morning in a shooting at a congressional baseball practice field in alexandria, virginia. The president of the United States says representative steve badlye from louisiana was injured but will fully recover. Thoughts and prayers are with him. The president making that statement on twitter. The Alexandria Police chief round will be speaking very shortly. David at or near the scene of the crime, it appears. So michael, we want to come back to you in washington. Thank you for your coverage this morning. What more do you know about it . We just heard from senator blumenthal from connecticut. What more is going on at the capital . Mike we have heard that another ,ember of Congress Representative Roger Williams who has been in Congress Since 2013 was also shot during this incident, shot in the leg. That according to fox news. According to senator jeff blake of arizona, two of representative scalises security detail were shot as well. One congressional staffer. We dont have the name of the others injured but there may have been a second member of congress who was hit in the shooting. David as you referred to earlier, we think of the Capitol Police being nice people there, that keep us all safe in the capital, but they in recent years have really had frankly way too many of these incidents where their own have been injured or even killed. Mike we have had a number of Capitol Policeman killed in line of duty. You go back to the 1950s when puerto rican nationalists exploded bombs in the capital. We have the shooting in the capital itself about 20 years ago where two Police Officers were shot and there are a number of incidents where people have brought guns into the capital building. They have had to be disarmed. The Capitol Police to put themselves in harms way very often. Jonathan some people are suggesting, already and none of this is verified but this has been targeted at the republicans but the source of this is representative ron desantis, who left a few minutes before the shooting. A man walked up and asked if republicans or democrats were on the field. He wasnt carrying anything. It is unclear whether the person was the assailant. Have we got any indication as to whether this was targeted at republicans . Mike none at all. I would hesitate drawing conclusions on what representative desantis said. There are all kinds of reports about all kind of things happening and you really have to step back and wait until the investigators can determine exactly what took place. All we know now is five people were shot, maybe two members of congress, and the gunman was also shot and in custody. Alexandria police hope to have a News Conference shortly. We hope to get more details at that time including a description of the suspect and any motive. We dont have any details on those lines yet. David because you know congress so well, give us a sense of the House Majority whips position. According to President Trump now, we have it from the president himself, he was badly injured but he will recover. If he is taken out of the mix, what could that do to Republican Leadership on the house side as they address all of this important legislation . Mike it is obviously going to hurt because he is a key member of the Republican Leadership team but they have a number of people in whip positions that will be able to proceed. The ways and Means Committee is working behind the scenes on tax reform. It hasnt quite gotten to a point where the leadership is involved, so it probably doesnt slow that down. Health care has already passed through and gone on to the senate. So this may not affect that. You may see some sort of impact in negotiations over the budget, the 2018 budget resolution, which has to get done either by the end of the fiscal year in september or before that so that they can put the tax reform in the reconciliation process for the bill and move that forward. That was always going to be a difficult negotiation because democrats dont like a number of the president s priorities and so this may come to kate that. May complicate that. If represented steve Steve Scalise is better, it wont. David they have also the debt ceiling coming up. Steve mnuchin, the treasury secretary, has suggested they need to advance the raised because they are running out of money too fast. They dont have many legislative days left in the calendar. Mike they dont and they are supposed to go on vacation on the first of august. If they dont get a number of these things done by then, Health Care May just fall off the radar by that time. They do need to do the debt of budget, some sort whether it is continuing resolution or whether it is getting appropriation bills passed is an appropriate question. By septembert do 30. They dont have much time ahead. The other stuff that is optional could fall by the wayside. Too early to say whether this will have impact on that. Jonathan i want to get everybody up to speed. The third highest ranked u. S. House republican and at least four others were injured wednesday morning at a congressional baseball practice field in alexandria, virginia. The president of the United States said that he and the Vice President were monitoring the developments closely. Alexandria police, the chief will be making a statement very shortly. Over to Anna Edgerton. Talk to me about how this may reenergize the gun control debate. As you know, in capitol hill, anything can be politicized. You see the way that this has played out, the shooter has a rifle. The Capitol Police had pistols. So when you have the mismatch of firepower, and the Capitol Police doing everything they can to neutralize the shooter as soon as possible, but he had a rifle and was able to fire off more than 50 shots. I am sure that will come up and even today, in congress, they were going to debate a bill that would make it easier for people to buy silencers on their weapons. This debate is constant on both sides of the aisle. Pushing to defend gun rights and pushing for more responsible gun control. State, does as a have pretty loose gun control so it is possible to buy arms there with minimal background checks so we dont know where the shooter got his rifle from. Jonathan we have learned from representative mo brooks, a republican and congressional member of that Baseball Team, that Steve Scalise was shot in the hip. What have we learned in the last 10 or 15 minutes on his condition . Anna he is in stable condition. We dont have many more updates. I spoke with a senior aide who had spoken with speaker paul ryan. He was not at the event and he asked that all comments he referred to Capitol Police at this time. We have a colleague on the scene and she says police have blocked off the area and have tried to keep reporters updated. As she said, we have the chief of police of alexandria, who will speak with reporters shortly. Now we are waiting for more details and trying to see how this is going to play out. David thanks anna. Now to another former new York Police Department commissioner on the phone. Thank you very much for joining us. You were in charge of a very Successful Police group for a good. Ofgive us a sense of what Law Enforcement does an Immediate Response to whats happening in alexandria, virginia. First, you preserve life. You create a perimeter to protect the people who are still there. And then you start doing intelligence work to see who the shooter is, what the associates are. Are there other people out there . All of this is going on simultaneously as you look to figure out whether this is an individual, terrorist related, a grudge. You have to do all of those things. The Alexandria Police chiefs mailing now. Lets listen in. Is speaking now. Lets listen in. As the chief pointed out, ongoingan active, investigation. The crime scene is called hot because we are collecting evidence and it would be further. To respond in an hour and a half we will give you an update on what we can speak to and perhaps give you some answers. Are there any other shooters out there . Atthis is a stable situation this point. We consider this incident to be closed and under investigation. Thank you very much, we will be back with you in about an hour and a half. X that was the alexandria cheap making comments. House republican and for others injured in a shooting at a congressional baseball field practice. Trump and the Vice President were monitoring things closely and say that the suspect is in custody according to Capitol Police. Learned from Michael Mckee, our economics and policy correspondent that according to the fed they have confirmed that at this time there is no change in the fomc schedule, david. David lets go back to the former new York Police Department commissioner. You just heard, i think, what we have heard in bits. What are the constraints on someone in your position about giving someone information right now. Anyone Law Enforcement knows that the first information you get is not correct. You need to find out all the information, all the fact, and you have to preserve evidence. Since the shooter is alive, this is going to be a prosecution and you have to make sure that you do not violate any individuals writes or create an evidentiary trail that is not correct. He will release what he believes can be public information. Mike david when things like this happen, rumors pop up. Particularly in the days of the internet. Need to keep your cards close to the vest but also give out as much as information as needed so that they are not overly concerned or headed in the wrong direction. I think he began to do that by saying that the situation is closed and under control. Say that he can then to the best of our knowledge whatever facts that dont impinge on the process to show in, such as well believe there are other shooters out there at the moment, he will qualify everything that he says so that it can be adjusted as they find more. These things are like a living being. They continually change. To address david some of the things you just talked about, how important is it to get the information from the perpetrator as soon as we know there is a suspect in custody, but we dont know the condition of that person. Time is wasting, you need to find out what else might be , correct . Thats right. Theyre trendy and is you as much information, identifying information as possible from whatever documents you might have in his possession so that they can Start Building your profile of who his associates are and whether or not there is a continuing threat or if this is an individual actor. Thank you sodavid much, commissioner. I want to go back to an adjutant and a adjutant Anna Edgerton for a moment. How important is Steve Scalise to getting votes . Position,ant is his so to speak, within the congress . Anna hes a very important person for the republican conference and we saw that play out in the health care vote, where they tried to have the initial vote on the American Health care act on march 24. Didnt have the support needed from the gop and had to pull it from the floor. In the following weeks they got it over the finish line in the last few minutes and pushed from the white house. This was led by Steve Scalise. He was integral in getting that over the finish line. David please stay with us. We want to go back to kevin on capitol hill. Tevin coleman we are here with the congressman from new york. Tragic mourning here. The news is still spreading spreading around the halls of congress. What is your reaction . Shocked and upset. You get shocked and upset at any shooting, but this one is very close to home, when a fellow member of congress is shot. Some staff people and others were shot. This is shocking, outrageous. My heart, my thoughts go out to , injured. Are shot i hope that everyone is ok. I also think that unfortunately states had in the united and in the world, generally, an increasingly violent rhetoric. Kevin when you look at just how partisan washington has become, this congressional baseball game is a rare moment where lawmakers set politics aside. How important is it, how important is this game . Put it into context for those not familiar. Its an annual baseball game set for tomorrow night at nationals stadium. Its a charity game. All the proceeds, 80,000, 90,000 go to various charities. Its the democrats against the republicans. Usually the democrats have a great pitcher, but thats not the point. Its a great opportunity for people. One of the problems in washington these days, the oldtimers will tell you that the people used to figure all the time, families here, you might fight rhetorically on the floor, but then you would see a republican at the same soccer game for your children. These days, everybody goes home almost everybody goes home over the weekend, you just dont get to know people from the other party. Your your own party you meet in conference and caucus, theres very little, relatively, opportunity to socialize or to get to know people from the other party and a baseball game is one such opportunity. And a source of good cheer and its unfortunate its tragic that it has been interrupted this way. I hope the game will continue and that everyone is ok. Of a place how young this is. All of these lawmakers this really were a company by 20 staffers. Their families watching the events unfolding in the Capitol Police, which you know, from working with them, the Important Role that they play here. Speak to how important they are. The Capitol Police are obviously extremely important. The Capitol Building and the people that work there, the senators, the congress members, the staff people, they are at the center of the greatest power in the world. The United States government. As such, its always potentially dangerous. There are all kinds of people, real ors of grievances, imagined. The things that we dont do here, refuse to do, its important that the people involved be safe and that election, not gunfire, determines the government. Kevin business as usual going to convene in washington today . I presume so . Unless we hear word of more tragedy. If someone should die or something. It doesnt appear that thats the case, i hope. Congressman jerry nadler, weaver much appreciate coming on. You for a much. Breaking news that we are monitoring, this developing situation out of alexandria, virginia. The third highest ranked u. S. House republican, use the lease, and at least four others injured wednesday morning in a shooting at a congressional baseball practice in alexandria, virginia. Of the United States, donald trump, says that he and Vice President pence are monitoring events closely and they have confirmed that the suspect is in custody. According to the president of the United States, Steve Scalise will fully recover. For our viewers and listeners worldwide, this is bloomberg tv, a warm welcome to our listeners. N Bloomberg Radio breaking news in the United States down from washington, d. C. , the third highest ranked House Republican and four others injured wednesday morning in a congressional baseball practice for the republicans. Steve scalise, the third highest ranked u. S. House republican, shot in the hip according to representative mo brooks, speaking to several news outlets in the United States. David we want to go to our correspondent, laura lippman. Describe the scene for us. Laura this is a neighborhood seven or eight miles away from capitol hill. Just, they have shut down the streets about three miles east and west of the scene, walking down to the area its just two straight locks of flashing light. Trucks. Least for fire president of alcohol, tobacco, and firearms. Capitol hill police. People would heavy weaponry. Stretcher being moved. I was not able to get close enough that i could see it the mood to the field to take somebody. Just get a brief from the police chief who said they got the call of the report of an active shooter. He and other officers told us it was one shooter and that officers returned i are in that people were transferred medically from the scene. They would not provide names from here or there conditions. David laura, there were a number of people on the scene. It was a baseball practice, after all. The people who were not injured, have they been detained question mark do we have a sense . Are they still still in the area or have they been let go . Usra they did not tell where they have taken people but they said that the reason that they will not be giving out more information for another hour and a half is they have a number of witnesses to interview and it is an active investigation. And said its very early that there are a number of people they are talking with. Jonathan i would like to turn to Michael Mckee now. For our listeners focus on the Financial Markets, they want to know if the Federal Reserve meeting is actually going ahead. What have you learned from the fed so far, michael . Mike the meeting began as scheduled and is far as i know they are planning to stick to the schedule, which have the fed with the decision at 2 30 this afternoon. These are washington times. We can tell you couple of other breaking news items. Vice president pence is canceled his speech to the Home Builders association that was to take place at 9 a. M. This morning. The Capitol Police just held a that personnel were involved. Alexandria police and capitol firee reportedly returning to the gunman. Police saying that this point all buildings will be open. The capital will be open on a routine basis, however there will be what they call a Robust Police presence throughout the capital. Security, ramped up. As we heard around the Alexandria Police chief say, the incident itself appears to be close, though the investigation is ongoing. Thethan the statement from president of the United States is as follows. Were Monitoring Development closely and are deeply saddened by this tragedy. Our thoughts are with First Responders and all others affected. What we have learned so far from the Congressional Baseball Team, speaking to several outlets in the United States, he called he told the Huffington Post that five people were injured as they were practicing for the upcoming Congressional Baseball Team. It was him that said that Steve Scalise was among those injured, shot in the hit. Brooks saying that the security detail fired back at the shooter. He also said that we are secure right now but have learned that representative when strip, a physician, aided shkrelis. He was reportedly shot in the hip area. David in the meantime Capitol Police have confirmed that members of congress and their own people have been hit. Aey said that there would be Robust Police presence out of an abundance of caution at the doingl, but they are not anything else to curtail activity at the capital at this time. Atra, lets go back to you the moment. You have described the scene, the setting, the neighborhood where it is. Do you have information from people around there, the man on the street, so to speak . Laura we have not had the effort and energy to do that. We are trying to view the scene and get a briefing. I will probably have some of that in just a little while. But we do know is that they had a lockdown at local schools. It was just lifted a little bit ago. But the streets remain very cordoned off. Theres a barricade three blocks east and three blocks west. This is a residential area. There are drug stores nearby, a supermarket, a ymca immediately adjacent to the baseball field where they were practicing. You know, this is a very surprising event. Again, not knowing exactly whats going on, do you see any evidence that they are securing the scene . I assume that the west that and is gone. What about any vehicle the sugar might have used to get in there . Have you seen evidence of that . Have they towed anything away . Able to have not been get close enough to see that. I have not heard of anyone seeing anything like that. We dont have any real information about the shooter this morning from the scene. David why were they out there that early in the morning . This happened around 7 30 in the morning, thats pretty early. Laura it sure is. They do the practice for the event before they go into the capital. Is not a typical at this time of your them to you. Conflictingere were reports about Roger Williams, from texas. An armed gunmen arrived arrived at a baseball practice and congressman williams was not shot. Steve scalise was shot and is receiving medical attention. We have not received further information but we will continue to release it as a comes to surface. David . David what is the Police Presence around you . Laura its heavy, federal and local police. Ill call, tobacco, firearms, the Capitol Hill Police, there are numerous fire trucks on the scene, as i described earlier. Two blocks of flashing red lights, police cars and fire trucks. What they told us here is that have beene transferred for medical attention. They are not providing names and conditions. We know that the House Majority whip, Steve Scalise, was injured. We are going out to justin blum, our Senior Editor congress. Justin, think you for being here. What is your report from the National Point of view . We know that Steve Scalise was shot in the hip this morning to accessing on the field in alexandria virginia. We know that several others were injured and taken to the hospital. Witnesses reported hearing dozens of shots fired in a pretty why it residential neighborhood. Lawmakers were practicing upfield ostrava y and da. Several shots ymca. People were working out across the street and several shots pierced windows there. Of sourcesve a lot on capitol hill. What are they telling you about whats going on, whats not going on, and the response . So far we just dont know. Its pretty early on. People are sorting out exactly what happened. David have you had a chance to talk to the staffers if not the principal . Justin coleman not yet, we are working on that now. The thirdhighest ranking u. S. House republican, Steve Scalise, has been shot, along with four others as the republican Congressional Baseball Team began practice at a baseball field in in alexandria virginia neighborhood. This according to several witnesses. Many of these statements coming from representative mo brooks, who spoke in an interview with cnn shortly after, saying that they saw a man with a rifle. Hoot Steve Scalise in the hip according to the president of the United States, making the statement on twitter, his thoughts are with Steve Scalise, who will recover fully according to the president. David we are joined now by representative joe crowley i made a mistake, i beg your pardon. Mike mckee, i thought we had joe crowley, but we will get him, im sure. Like, tell us what you know thet whats going on in federal government more broadly. This affects the executive branch, after all. Yes, we know that security was tightened immediately afterward of the shooting. The president and Vice President were both in armed by National Security staff this morning. Donald trump has already tweeted out twice, once notifying people that he had been informed and another time saying that from his information representative scalise would be badly wounded but would recover. We know that on capitol hill the Capitol Police say they have increased security but will be allowing the building to be open, all the congressional offices will be open and security will be much heavier. You can imagine that that is going to be the case at other federal buildings around the capital area. The Federal Reserve was to be the focus in washington today and they are going ahead with the regularly scheduled meeting. They are apparently still on schedule for a 2 p. M. Washington time decision release and a 2 30 p. M. Washington time janet yellen News Conference. Just a short time ago the Alexandria Police held a News Conference to tell us basically what we already knew, that five people have been shot. But they say that it 10 30 this morning we will get another News Conference and that is maybe when we will get much more detail about what has been going on. Emphasizewe should the Market Action on the bloomberg screen today, driven not by what happening in d. C. But by the Economic Data that was released of it earlier. That data, disappointing. Lation, a downsize downside surprise. Retail sales, a downside surprise as well. That is what is driving the Market Action. Certainly not the nervousness in d. C. At the moment. Downside surprise on inflation and retail sales. Yields rolling over to the 2017 lows and the dollar a lot weaker as well, david. David now we do have representative crowley from new york with us. Hes a senior representative on the leadership side for the democrats. I understand that hes on the roster for the team but wasnt there this morning. What do you know . Representative on doughnutas detail this morning, frankly, bringing coffee and doughnuts. I got a call from my wife, she had been watching the news. She said dont go to baseball practice, dont go. She told me it wasnt clear at that point whether it was the democrat or the republican baseball practice that was where the shots were fired, but thats what i had heard. I then rounded back to the capital and have been paying attention ever since. My prayers go out to steve and his family. I know that reports are that he will recover fully, but this is not democrat republican. This has penetrated so deeply to the heart of all of us here on the hill, regardless of already. Our thoughts go out to all the and everyone who has been involved in this horrific and terrifying incident. Im sure that we all share that sentiment. Where was the Democratic Practice supposed to be . The same area . Rep. Crowley no, its not. Im a little nervous about exposing its, its probably part of Public Record at some point. Weve this eddie university in the city. For this great event, a Charity Event that takes place every year. Has for decades. It was supposed to happen tomorrow night. As to whether or not that will still occur is still not known. My understanding is that for the republicans have used this field in alexandria for their practices. Communication, if any, have you gotten either from Capitol Police or leadership of the congress about what you should do or not do in your personal behavior to protect yourself . Rep. Crowley well, from time to time we are given updates about a threat to our person personally or to the general body. We are precautions not to bring attention to our cars or ourselves, per se, outside the normal practice of what we do, which a lot of times does draw attention to ourselves. Upon thishat incident, depending on the information that they gather, theres still so much we dont know. Its basically hearsay and until we get a full rundown from the police and the authorities as to the motivation of the shooter, we wont know what steps to take it at that point we will be paying attention to the Capitol Police and local Law Enforcement as well. So much,ey queue representative joe crowley. We are now joined by another house of every member, mo brooks. I understand it you actually were at the practice . Representative brooks yes, sir. Right now im outside the ball field. Yards from where the atoting took place, looking busted windows, the firing probability the distance. David you can tell that they were broken because of gunshots . Rep. Brooks i assume it was from a gunshot. The window is busted out. I got people around me, its difficult to hear. Will speak up. We may be looking at a live shot near where you are. Take us through exactly what you saw and what you heard at the time of the shooting. Ra normally rep. Brooks normally during rep. Brooks normally during practice im in left field. I decided to come out early and it was a blessing. When i got to home plate to warm up, i was on the third ace side of home plate. Then i heard this loud explosion behind me. I turned around and i saw a gun barrel at the finish line, at the chainlink fence behind the thirdbase dugout, which is cinderblocks, so there is some production there. By the time i hear that gunshot, Steve Scalise scream something. Im not sure if it was im shot or a scream of pain or what. Simultaneously i hear more gunshots. And i see the rifle. I see the shooter. It occurs to me that if he adjusted his aim to the right, 20 to 30 degrees, im the next closest target. Ran around thely batting cage. I dont know if you are familiar with batting cages, but its fencing on top to catch fly balls and than four feet of blue plastic. I hit the dirt behind that blue plastic along with two or three other people that were there. Its such a blur, i dont remember if they were congressman or not. While this was going on the gunfire is coming nonstop from the rifle. It occurs to me that im not in the best position. He could easily go around the thirdbase dugout and pick us off from about 15 feet away. At this point there is still no still no return gunfire from Capitol Police. I dont know if we collectively or individually made the decision, but we ran to the dugout, the first place dugout, the cinderblock that is recessed. We dove into the dugout. Some of our folks suffered bruises and contusions, scrapes from diving into the concrete dugout. Everybody onver the far right sealed right field side of the dugout case there was a chance to escape. The notice that one of the staffers was bleeding from his leg. He says hes ok. No, you been shot, youre not ok. Pull off the belt and myself and another individual, i dont know who it was, put on a turn a kid using the belt to stem the bleeding from his calf muscle. And then we ducked back down, keeping it as low as we could. At the same time there are a couple of people in the dugout that have cell phones talking about how we are under attack in the are screaming for reinforcements. At least so far there has been no return fire by security detail. As best i know. Im at the end of the dugout on and all ofield line a sudden i hear a loud explosions. I look up and theres a man with a gun. Fortunately, hes a good guy. Hes shooting back across the infield at the man with the the manat is causing with the rifle to be distracted. His aim is not as good. Are staying down. The Capitol Police officers are instructing us to stay low area at the same time we hear that Steve Scalise has drug himself from the dirt infield to the grass outfield. There is a trail of blood. We can help them. We are helpless. We have bats versus a rifle. Not good not good odds. An intense moment, we stay down, and others in exchange of gunfire. I dont know how many dozens of shots. It seems like it took forever. Seems like it to go long time for local Law Enforcement to provide backup to Capitol Police. Seemed like a long time, but i would guess Something Like three to five minutes. In these kinds of things the clock seems to move real slow area eventually we hear the shouting that the shooter is down. We stay down a little bit longer just a make sure that hes not only down but no longer shooting. I think that jeff flake was the first out of the dugout. I was shortly behind him, running to the outright deal where Steve Scalise was on the ground. There were about three or four of us there. We got there fairly quickly. Someone ran back to steve, who wanted something to drink. When you have loss of mud, you get thirsty. A congressman from cincinnati, hesbat Brad Wenstrup a physician and suddenly there is no pressure on the wound by anybody. Brad is getting prepared to cut off the pants and he hands me the cloth and i put a cloth over steves hip where he has been shot, trying to slow the blood is in his brad position doing the things that need to be done so that he can better access the wound. The Capitol Police officer who is defending us hobbles out on a bad limp. That is because hes been shot. We are trying to tell him to get back into care of him. He is loyal to the person hes trying to protect. Even though hes wounded, like everyone else hes trying to make sure that Steve Scalise will be ok. Eventually he talks to steve and does what he needs to do the checking. Then he goes back and gets checked. Apparently one of our Capitol Police officers were shot. I dont know how bad. To stever landed close scalise. Whoever was shot worse was taken out in a helicopter. At this time the Police Showed up on the concrete basketball court. Us. Have surrounded encase is a second shooter. I think that is pretty much a tizzy. There are probably parts that i have omitted as i try to a to z. I think there may be have parts that i am itd omitted. I think that steve is fine. Calf, hehot in the still had my belt around his leg. The shooter, i dont have kind thoughts about him. The four innocent people that were shot, the capital officer, officer,er, the other and Steve Scalise, i hope everyone in america will share their thoughts and prayers. At a Charity Event and we under gunfire. Who would have thought. Jonathan we appreciate your time. I want to welcome viewers worldwide on bloomberg tv and globally on Bloomberg Radio. Following a shooting at a congressional baseball practice where steve cohen Steve Scalise was shot. We are joined by representative mo brooks, who is at the practice and joins us at the scene. I wanted to bring you the statement from paul ryan this morning. Brave Capitol Police staff, and all of those that were in harms way, representative brooks, the following question for you, difficult given the disturbing events. Bear with me. Did you hear anything from the shooter that would indicate to you what the motive actually was . Never heard him say a word. But after the first few shots or so there was a lot of hollering by the staff and the congressman about active shooter and to take cover. If he had said anything we probably would have not heard it. Once the Capitol Police engaged, it seems that he was pinned down behind the thirdbase dugout. Cinderblock, is area but at some point or another, rifles versus pistols, he was able to beat the Law Enforcement officers and was making his way to the dugout, where the rest of us had sought protection. But for the bravery of our Wounded Capitol Police officers, there could have been a lot of people shot. David representative, described the shooter, if you can. I assume it was a man, you keep referring to it as him. I got a good look at him but it was only for a fraction of a second. As long as it took me to realize that if i could see him, he could see me. I was an easy target. It appeared to be a white male. I would say middleaged. He was not skinny. I would not call him fat or obese but he seemed to be on the chubby side. But im telling you it was a short glance. As soon as i figured out what was going on and that i was in sight of the shot to move in my direction, i took evasive action. David please stay with us. We are going to bring in someone you were just talking about, someone who was there with you , ashelp you administer aid we just heard congressman when strip, congressman brad , you try to curtail the experience on the scene. Tell us your experience. Representative when strip rep. Wenstrup people did a tremendous job, i have to say, trying to get themselves out of harms way, doing the right thing, getting on the ground and taking cover. Steve was not able to, unfortunately. I can only imagine what is going was mind as he laid there and could hear the shots going back and forth for it sometime. Once it look like they had the man subdued, i went out there. Mo brooks was there, jeff flake was there. We did what we needed to do. Was a combat surgeon in iraq my instincts took over. When the medics came there we were able to put on the appropriate bandage. We were trying not to move steve said that he didnt have any other further injuries as he laid there. You are a trained combat medic who knows how to handle the sorts of things area when he left you, as i understand it, he was fully conscious . Rep. Wenstrup he was. He was counting to five, we were getting him fluids. Steve, do you know or you are, im at the ballpark, so he was aware. I can know me imagine what was going through his mind and that of the others. I just want to pray for the others that were hit during the process. Said day in america, obviously. The guy was mobile, obviously. He came from behind couple of different buildings. Him from where i was standing. To recap thet headlines for you, republicans, congressman, arranging a baseball practice this morning wherexandria, virginia, the third highest ranked u. S. House republican and at least four others were shot i an assailant. The shooter has been captured by the police and is in custody. The House Majority whip, Steve Scalise, was shot in the hip according to representative mo brooks. When you described at the beginning, when you first saw him, behind as i understand it youthirdbase dugout, described a lot of shots being fired. Was it an automatic weapon as far as you can tell . Were these single shots, one after the other . They were single shots in rapid succession. It wasnt like a machine gun. They were like a semi automatic or an automatic shotgun rather than a pump shotgun, where it would be a fraction of a second between shots area seems to me that it would be the kind of gun that would fire when you pulled the trigger as opposed to keeping the trigger down. And he was aiming. There was a little bit of time between shots to aim. Distance would be fractions of a second. Sometimes it would be a second, two or three. Jonathan to give you the update from the hospital, to individuals in critical condition. They have not an identified. The spokeswoman says no other information at this time. Congressman brooks, i want to come back to you and strupp essman when rep. Wenstrup. How long of a time was this between the firing and the Capitol Police coming . Rep. Wenstrup long enough for me to see the shooter discharge site discharge shots and that i would be the next closest to him. To dive around the batting cage and land on my belly with my batting helmet and hand. I live there for some. Of time. Some amount of time. Might have been 30, 60 seconds, two minutes. That in this circumstance, judging time is right difficult. Its strictly a guess. When do you get up and run . When you get up and run you are in the sight of the shooter and he can try to take you out. In the time youre lying on the ground you are weighing that risk versus the risk he will come around the thirdbase dugout with a clear line of sight and people lying on the ground behind that plastic shield, which of course is not much of a shield at all. Ran from there, sprinted to the dugout. I dont know if we collectively made the decision to seek cover or if one of us got up and then we all got up. It was enough time to get to the first base dugout. Im still hearing no return fire. Im in the dugout. I see the staffer who has a leg wound. I take off my belt. Myself and another gentleman, i dont know who, applied attorney kit. Lying face first along with others close to the ground, breathing dugout dust. To my right im at the far end of the dugout now on the first ace line and to my right i start guy with a pistol. Im going my goodness, is he one of our guys . Or is it a double shooter situation . Took a second to figure out that he was one of our guys firing back at the shooter. It was one of the best sites. One of the best sites are seen in my life. Jonathan i want to get to this statement from Steve Scalises office. Hes undergoing surgery and he was in good spirits before the surgery. Representative brooks, talk to us about how important this game is now and how important it be to dampen that division between democrats and republicans and across Party Tension that we have seen heightened over the last five to six months. Is one of thehis few occasions where democrats and republicans can get together in a bipartisan way and agree to do something that they agrees a good thing. This Charity Baseball game is help to raise 300,000 to people who are otherwise not in a position to help themselves. It does a lot of good, its spread out amongst a lot of different charities. Start trying to take out congressman under those circumstances is just unconscionable. There arent words to describe it. David unimaginable. Youesentative, where are right now . I understand that representative brooks is still on the scene, i assume because the police have asked him to remain behind. Where are you physically . Is brad still there . If he isnt, representative brooks is it because the police are asking you to states of the can talk to you . Rep. Brooks the reason im still here is because i ride my bike nine miles from the capital to the baseball field, going over the potomac past reagan national. Next to my bicycle is my voting card that are used to vote. I got my wallet, a lot of personal effects and i hope to be able to talk to one of the investigators and take the things that i need to get me back to the capital and also to get me my identification and the things that you need when serving in congress. David that is one diligent congressman. Sir, thank you very much for joining us. The congressman there, mo brooks, who is at the scene of that baseball practice as well. We want to bring you Michael Mckee, who is in washington, d. C. This tragic event, not the only thing happening there today. We understand that the Federal Reserve decision will go ahead . It will. The decision is expected at 2 p. M. This afternoon. No change in the forecast to raise rates, to raise the range of rates by 25 basis points. Then janet yellen will hold her News Conference at 2 30 p. M. Eastern time. There is Economic News to talk about today. Cpi came and down 1 10, pushing the yearoveryear rate down to 1. 9 to 2. 2 . That would be a concern to members of the fed who have been focused on inflation and its direction in terms of what they do going forward. Also, retail sales out this morning were down three tents. The Retail Sales Control Group that partly goes into gdp was flat around a revised extents gain in the prior month. Not terrible news, but it suggests that the economy is slower little bit and it may influence what the fed is doing today. Treasury yields have fallen on the Economic News and now we are seeing some stock market down. Hard to disentangle the shooting in alexandria from the Economic News and what the fed might do in terms of whats happening on wall street. All of it coming gather to make for an interesting and confusing trading day so far. Jonathan as the tragedy comes out around the shooting, lets take a moment to look at the Economic Data. Is there a message to be captured in that economic projection . Is it maybe slow down . Is mike that is what some will be saying, certainly. Why do they think the rate continues to fall . Some think its an oil crisis. The last time we saw a drum up they said that cell phone prices were lower. Apparently there was a big drop in airfares in the last the most recent months. The issue is why isnt inflation behaving the way they thought it would when you see unemployment falling to below what they consider full employment. Does that mean they have gone too far in having an impact on the economy . Or are these extraneous factors and they should go ahead . Jonathan Michael Mckee ahead of the Federal Reserve decision. Thank you for joining us. 17 minutes into the session, lets with through the Market Action for you. The s p 500 is going no you nowhere. Scene, the dollar is weak or as well after disappointing Economic Data in the United States. A downside surprise, cpi came in at 0. 1 month on month, year on year, it came in at 2. 2 previously. 0. 3l sales came in at month on month. The news in d. C. Is less about the Economic Data, which is playing through Financial Markets, but the big news is the headlines as follows. Steve scalise, the thirdhighest and at House Republican least three others, injured in the congressional baseball practice in alexandria, virginia, david. Bringing in the former fbi assistant director. Thank you for being with us. Put your fbi hat back on. Like this happens and you get called in, what is your checklist . What lists do you go through . First of all, you do the triage. Second of all, you start seeing who saw what. Then you have to get the shooter themselves. That has to be flushed out. The police department, alexandria and the Capitol Police did the right thing. They said with a could say in the News Conference and didnt say any more than that and its always better to give correct fact so that no one has to hypothesize what happened. They will come out with another report sooner or later but right now they are figuring out who the shooter was in maybe his , but also determining who was injured at how badly. We are looking at this scene, live in alexandria. What happens with jurisdiction . I dont want to ring up territory, but who gets to be in charge of the investigation . Alexandria police . Capitol hill police . Fbi . I think that all three of them will be working together. We have a congressman involved in the capital is, of course, and the Alexandria Police, because of the geographical location. It will be a concerted effort. It wont be pushing and shoving to see this case it is. I can assure you that everyone will Work Together on this particular case. Those rare instances where democrats and republicans are doing the right thing, together with the game for a Charity Event. There is going to be a lot of cooperation and we are trying to find out who the shooter is. Butill be done immediately, the shooters motivation may take a bit longer. And as much as they survived, thats always good as well. Reports are from the Washington Post that he is wounded and that the information we have at the moment. How complicated is this . There were quite a few people on that field. Did you need to go through each and every one . Do you need to detain them . To talk toly have each and every one of them. I assume that some of them departed the scene on capitol hill and if they were elected congressman or aids to congressman, its going to be difficult to have to identify each one. And you have to interview each one because thats how they put together the picture of what really happened. They heard the gunshots, they saw Different Things, maybe some have seen the same thing but interpreted it to family. That all has to be fleshed out and put together. This is what happens when adrenaline starts to flow. You hear Different Things from the same people witnessing the same event. Jonathan id like to take a moment to bring in Anna Edgerton. Give us the latest, what do you understand is developing currently . Anna we got a statement from the office of Steve Scalise that he was going into surgery and was in good spirits. We are also getting reports from several scheduled press conferences on capitol hill, Committee Hearings that have been cut postponed or canceled then postponed or canceled. As a right now the house is not scheduling any votes for the day. All the floor activity for the day has so far been canceled but im sure that some of that will be updated as we get more information. There is security, a lot of security on capitol hill, at its not on lockdown. Its just tight security given the events of the day. Can you talk to me about the security profile that would associate these members with Something Like this . Were fortunate that Steve Scalise was there because as a member of the Leadership Team he has his own Capital Police detail. Ranknot normal for regular and File Congress to have Security Officers traveling with them. The fact that the Capitol Police were there is pretty much what saved the day for everyone else involved. David mike, from your experience in washington, how does washington react and events like this . It . It pretty much react to do they mourn those who were injured and move on . Or does it have a lingering effect in washington the way does business . Mike unfortunately it tends to be the former. There is concern that brings both sides together and then they gradually jerked apart again. We have seen it a number of times in the past. Remember what happened after 9 11, when we were all one United Country and how far we seem from that today. The one area in which you do see some change is insecurity. Incidents went to capital Police Officers were shot to death by a man who enter the capitol with a gun, going to the tourist entrance metal detector, the capital did build a Visitors Center that moves the security for a matter farther away from the Capitol Building. Just last year a man was arrested with a gun in the capitol Visitors Center. It does remove the threat of little bit farther away from the building. Of course, pennsylvania avenue in front of the white house was lows after the Timothy Mcveigh bombing in oklahoma city. After these tragedies you see security responses, but the personal responses of the people in washington tend to fall apart after a little while. Ourthan i want to welcome viewers globally and internationally, right here on bloomberg tv. The latest, then, the third highestranking republican, the chief whip, the majority whip, mr. Steve scalise, shot and forred along with others the congressional baseball game practice that is coming up shortly. The shooter is in custody and Steve Scalise is in surgery according to his office. We have a statement from representative Roger Williams, coach of that team. The statement says that at approximately 7 a. M. This morning and armed gunmen arrived it a small practice and opened fire. Congressman williams was not shot that a member of his staff was shot and is receiving medical attention. The government has been detained and at the same we dont have further information but we will continue to release it as it comes to the surface. Information on the actual team and the practice, theyll practice every morning at 6 30 a. M. Eastern time at the Eugene Simpson stadium park in virginia. Confirming then that representative williams was not shot. He has been the coach of the team since he joined congress in 2013. Impressive, 6 30 a. M. In the morning every week to practice. And as we just heard from mo brooks, he bicycles. An incredibly lucky that Steve Scalise was there. As part of the majority whip, it means he gets police protection. As the representative said, if there had been some delay fortunately Capitol Hill Police were there. Wanting to go back up now to Kevin Cirilli, who is up on capitol hill. Kevin . We are here live inside the capital where the fallout still very much unfolding. We are hearing from police that the investigation is still ongoing and that members of the Congressional Baseball Team are arriving earlier. Still in their uniforms. We are joined by congressman jenkins, a close friend of representative scillys. What are your thoughts about whats going on . Deepsentative jenkins concern. Its encouraging news that the that it does not appear to be lifethreatening. I can only represent imagine his wife and family in concern. I know that my wife reached out to me wondering if i was safe. Its also the others injured in this horrific incident. We pray for their wellbeing or recovery. Congress is such a partisan place, but this is a rare opportunity for there to be a nonpartisan event, i congressional baseball game. How important is this ballgame now . Rep. Wenstrup rep. Jenkins rep. Jenkins throughout the year we have very is immense. The baseball game is just one example of several activities together,ve come democrats and republicans, in friendly competition, but always for a good cause, charity. Im a runner. You have seen me a couple of mornings each week sleeping in my office, running with democrats and republicans in the morning. A lot of people think that because of what they see on the tv and what they read in the press about contentious discussion and dialogue, candidly we all get along pretty well. We have deep policy differences and thats understandable, but we also know each other, respect each other, and understand that we are in this together. Theres another understanding Capitol Police. I know that as a reporter, who has worked here for five or six , staffers, lawmakers on both sides of the aisle, the job that those staffers have to do, clearly, thankfully they were at the field. Talk to me about the importance of what the Capital Police does in order to keep people safe and their role in todays event. Its critical. Anything that drops to the cracks could be a tragedy. The fact that two of our capital Police Officers, part of the security detail because Steve Scalise is the majority whip, he receives a detailed just like the majority leader and speaker of the house. I can only imagine what it have happened had those two people not been there this morning. There. Lly the, they were we have received alerts this morning from capital lease to notify us about the heightened activity. But thats not to suggest that they are in any way not always on the heightened status. This is a very secure area at the capital. What happened this morning was obviously offcampus. Be, the legislators and public in general, theres a lot of interaction and spaces where people who dont have to go through metal detectors are walking across the street. Run down to the Lincoln Memorial each morning, so you are out there in the public, and unfortunately, we do have a dangerous world, but we are also mindful of needing to be conscious. Back in the last couple of years, this is without question the worst not the worst shooting, but any time, you feel the immediate presence of Capital Police. I do not think people understand it is a very young environment, with young twentysomething staffers and parents who see their kids fresh out of college working in the halls of congress. 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