At 8 30, well get u. S. Housing starts and Building Permits for the month of july. Then talks begin between the United States, canada and mexico, get underway in washington with the first round of negotiations beginning at 9 30 this morning. And later in the day, the fomc will release minutes from its july 20 to 26 policy meeting at 2 00 eastern time this afternoon. But in the meantime, the fallout continues from the remarkable News ConferencePresident Trump had here in new york yesterday, where he once again appeared to change his view on who was really to blame for the riots in charlottesville. And this as part of an attempt to refocus on infrastructure. Joining us from washington, bloombergs Senior Executive editor for International Economics and government. So marty, welcome back. I think its fair to say this was an extraordinary News Conference. I really want to focus on the fact that this was all to really focus on infrastructure. That was why he was there, we thought why he came to new york, and he seemed to get off on a tangent again with his staff surrounding him. Marty yeah, i mean, i dont know whose idea it was to hold a press conference yesterday, but i think the aides thought he was going stay on message. He had his saturday dialogue before him, and everybody thought he was going to read it. And instead, he went to the place hes most comfortable, and thats what he really believes. And thats what you heard yesterday, what he really thinks. David what is the aftermath at this point . In the real world, what are the tangible conspiracies, both particularly with respect to the republicans . What is the republicans reaction to this, the people he needs to get legislation through, and also the c. E. O. s . Marty certainly for the g. O. P. , they have distanced themselves already from donald trump to a considerable extent. There was no groundswell of named condemnation. I mean, paul ryan put out a tweet very soon after Donald Trumps press conference condemning white supremacists, but it didnt mention donald trump by name. They will have to distance themselves from this president , but they have done that in the past. Its like hard to measure how much further they can possibly go. Besides totally abandoning him by name, which they are not likely to do. David in the meantime, we seem to have a continuation of this story that this c. E. O. President , whos going to be a friend to business, is taking on c. E. O. s again and again. We have the various defections from his council, but even this morning, hes out with a new president ial tweet saying amazon is doing great damage to taxpaying retailers, towns, cities, and states throughout United States are being hurt. Many jobs being lost. So he certainly is not hesitant to take on the Business Leadership in this country. Marty no, hes not. And dont forget, amazon is the owner of the washington post, which has been severely critical of this president , and amazon has an acquisition of whole foods before its own justice department. Im not sure donald trump truly realizes that, but hes gone after amazon before. He has really no power to do anything about it. Its just lashing out to change the dialogue again by this president. David ok, pretty extraordinary. Thank you very much, marty schenker, coming to us from washington. Jonathan lets bring in the head of Public Policy research from barclays. He joins us here. It came out yesterday, the chief of staff for the white house, it was john kelly looking very thoughtful, and what i thought when i looked at that picture of him, just the number of weeks ago, many a story was written about this guy bringing order, restoring order to the white house. It doesnt look like theres much order in the white house right now. What do you make of it, and ultimately, what does it mean for the effort to get tax reform through . I think the various c. E. O. s leaving this council is their own personal decision. I dont think it has a dramatic impact on the policy agenda on this. Keep in mind, the president can say and tweet lots of Different Things. But at the end of the day, we need congress to actually pass tax reform. On the first issue on the chief of staff, my take on him, he has brought a lot of order to how folks report in to him. Youre seeing various folks leave. Youre seeing more prepared being prepared. But its very difficult to do this, because how do you control the president , or are you going to spend your time managing the staff around . David help us sort out. If newer congress, if youre a representative, a senator, how much are you affected by things like this . I mean, you dont vote for legislation because you like the president or dislike the president. You vote for him because you think its in your best interest and your constituents best interests. Will this really make a difference in tax reform . Shawn you spend a lot of time fielding phone calls. So you may go on an interview or talk about something on trade, with the nafta renotions starting today, and all the constituents, all the people in the audience might ask you about, how do you feel about the president s comments on x or y or this tweet, so you cant get to the things you want to spend your time talking about. Jonathan the difference between the news cycle and the significance, and maybe to what is actually napping d. C. Today, those same congressmen are still going to go to work and i assume theyre going to focus on what they were focusing on the day before. So that extent, are those reforms going to get through . Shawn congress is there to govern, and theyre trying to put all these things together, as we still think by the end of q 1, you can expect to see tax reform on the table. Im optimistic they can get a deal done, more likely tax cuts, not a broadbased tax reform. But this process shows me hes trying to win the news cycle by putting out these kind of comments by dominating the news. Jonathan i want to bring in a chief market strategist, joining from us london. For a market participant, its difficult to divorce the emotion from the events of the last several days and really focus on the fundamentals, if there are any, in d. C. At the moment, and what we may or may not get from washington. Give me your thoughts, chris. Chris well, i mean, i think the market remains in this bull market, and its largely uninterested in whats going on in washington except to the extent that north korean geo politics keeps coming up and could become a serious issue. But absent putting that to one side, i think washington is not much more than an irritant to the market. I think weve all come to the view that clearly trumps legislative agenda is going to be pretty small compared to what was expected at the end of last year, the beginning of this year, and markets have just got on with it. Earnings growth is good. The economy is robust. And the trend is up. Now, you know, thats not to say were not having a bit of a break in that trend short term now, but really, i think the market is largely indifferent to what trump is up to. Shawn one of the things to keep in mind, if he hits problems getting legislation done, and weve seen this on healthcare, but its going to happen on tax reform, he can be more aggressive on trade. As we begin nafta renegotiations today, theres loft people watching to see whats he going to be tweeting. Will he take a more aggressive tone when it comes to china . Hes got the executive order out. Or on steel imports, or any other issue Going Forward. David i wonder how important it is the president have the support from the business community. Larry summers wrote, i fear a massive backlash against businesses is all but inethable. Such a backlash would you highly unfortunate, but not difficult to understand. Every member of trumps Advisory Council should wrestle with his or her conscience and ponder Edmund Burkes famous warning that all that is necessary for the triumph of evil is for good men to do nothing. I like quote edmund burke on tv. How important, we thought this president was going to be largely aligned with the business community. That doesnt seem to be in the cards. Does it matter . Chris the one thing for business, the fed remains on the side, which they do, and Monetary Policy remains super loose. Banks continue to lend. And confidence is actually high, despite all these concerns about what trump is doing. I think the world is collectively coming to the conclusion that trump tweets and storms and rages, and in reality, not that much changes. And, you know, i think weave come to understand that, and markets and business have come to understand that. So unless he actually really does do something quite dramatic with an executive order, im not sure what he could or do not do, i think the impact is pretty limited, to be honest. Jonathan does that work both ways . Amazon down about. 7 . Merck actually traded higher, despite the criticism. What i mean is, six months ago, if the president of the United States made a comment, a statement about the potential for tax reform, markets also rallied t. Worked both ways. So people are no longer to the damage on the down side, does it work the other way as well . Shawn i think a little bit. I think investors are beginning to realize whats actually possible. The president may say these great things, but i think some investors are assuming, oh, republicans control congress, theyll easily get this done. But now theyre coming to the realization that this is a lot harder than it looks. And if we dont get a tax deal done, i think its going to be a rude wakeup call. David shawn and chris, both of them will be staying with us. Coming up, antonio garza, former u. S. Ambassador to mexico, hell be joining us, as those nafta negotiations begin in washington. Later, the former c. B. O. Director joins us with the latest on healthcare. Live from new york, and from london, this is bloomberg. David this is bloomberg. Im david westin. This afternoon, we get to see the minutes from the fomc meetings last month. Well see what we can learn about the feds attitude toward Inflation Numbers and, for that matter, reducing its Balance Sheet. Shawn and chris, and chris, we start with you, youve already said essentially that the fed trumps the white house at this moment. Thats more important to the markets and investors. Do you expect to learn anything that would be really informative in these minutes . Chris yeah, i mean, were going to start to see how theyre a bit more color on reducing the Balance Sheet, which i think is key, and i think investors need to remember, of course, that Balance Sheet reduction is effectively monetary tightening. The pace at which they do it is important, and i think it will be interesting following on from dudleys comments that we had a couple of days ago, talking about a possible rate hike as well at the end of this year. So for me, i think whats really interesting will be how the dollar reacts to it, because seems to me the dollar is trying to form a low, if you look at tradeweighted dollar, it bounced off a significant low in the last few days. So ill be watching closely. I think its important to see what their plans are. Its very important in terms of where markets go and what the dollar gets up to. David lets look at exactly hat mr. Dudley had to say Monetary Policy is still accommodative, so the level of shortterm rates is pretty low, and two, financial conditions have been easing rather than tightening. Chris, lets talk about that second issue, because it does strike all of us that despite the fact that the fed has raised now more than once, the financial conditions have actually loosened. Ow much of that is the dollar . Chris Credit Conditions have eased. I think as banks have made more money and felt more confident about the economy, theyve eased their Credit Conditions, and now were seeing a reacceleration of credit growth. The start of this year it was slowing, and that was a big drama for investors. Now its turning up, and credit is growing going, and thats a gn of a healthy economy, and easing financial conditions. I think its key. Also Financial Markets. Jonathan soft inflation here in the United States, and a Federal Reserve that still seems determined about hiking, if dudleys comments are anything to go by. Is it a good thing theyre not so obsessed or are they missing the point . Chris not at all. Inflation is a lagging indicator, not a leading indicator, so its telling us about the past. Its a lag he frequent that. Its telling bus the credit growth slowdown we had in late 2016, 2015. Its not tell us about the future f. Im right, the economy is as robust as it seems, inflation will turn upwards, and therefore, the fed needs to look forward and think about that dynamic, and financial conditions are still very easy. Jonathan to some extent they were looking forward to the five months that played out following their projections, have not played out in the way that many people thought they would. So to be datadependent, youve got to be dependent on the cat that comes in. Its always going to be backwardlooking, and it should shape your thoughts Going Forward. Momentum has to matter, surely. Chris Monetary Policy operations from the fed, they have to be slightly data dependent, which is backward looking. As we all know, Monetary Policy akes 12 to 18plus months to fully effect the economy. There has to be a tension between what they see coming in and what they believe the future holds. They have to balance both of those. But i think inflation will reaccelerate into next year, and i think thats what the fed should be thinking about and probably will be thinking about. David strikes me weve all gotten pretty comfortable talking about the fed, and as janet yellen said, its a fisher fed, its a dudley fed. To what extent should we look at real changes in the fed with the new administration . I think even as we looked at that News Conference yesterday with trump, and see square cohen standing off to the side. Shawn absolutely. Thats very important to look at. For the president , i dont know if this is a top agenda line item. Im sure he has a list. But i think gary cohen is the one devising the list or managing through it. Jonathan worked for dick cheney. Shawn i think it is absolutely very important in terms of how he thinks about it. The names that have been put forward should give investors a little bit of confidence that youre not seeing these ideas, at least not yet. Jonathan get your thoughts on this, chris. I remember the last time around, we were speculating as to who would be leading the fed, and it was Larry Summers, and it was janet yellen, and the market has made a decision that janet yellen was going to be dovish and that Larry Summers was going to be the hawk out of the two of them, and how wrong we would have been if Larry Summers would have been the fed chair, gven his current thoughts on Monetary Policy and economics. But wheres the bias right now for the market, for janet yellen getting another term and what that would ultimately mean, and if gary cohen got it . Chris my understanding is theres a tiny bit more hawkish than janet yellen, but fairly pragmatic. In reality, i actually think that both candidates are way off where they should be. Theres too much Liquidity Provision in Financial Markets from Central Banks starting with the fed and rolling out to the rest of the world. And that, i think, is where we fail in terms of bigpicture economic policy. At the margin, perhaps a tiny bit more hawkish, although hes pragmatic, hes exgoldman, so hes from the same sort of stable as many of the guys weve seen come through the fed. I think netnet, the difference will be small, and i dont think youll have a Significant Impact on markets, if i may say so. We need to change the way the Monetary Policy is operated in a meaningful way, but perhaps thats a story and a debate for another day. Jonathan wouldnt you rather be standing in the News Conference of yesterday or just in the fed doing some research, getting ready for a News Conference in a couple of months time . David id almost be anywhere than at the News Conference yesterday t. Didnt look that comfortable. Jonathan im sure theyll stick with us, since chris is staying with us as well. Coming Occupant Program a little bit later, the cohead of Global Fixed Income will join us, u. S. Highgrade debt this year topping a trillion dollars. Were going to get stuck into that market in just a moment. From new york, youre watching bloomberg tv. Emma this is bloomberg daybreak with your business flash. Target is forecasting full earnings that beat estimates. The chain also reported secondquarter comparable sales that were better than expected. The c. E. O. Has 7 billion turnaround plan aimed at refurbishing target stores, opening smaller locations, and improving the Online Business. Uber is in exclusive talks to arrange up to 12 billion in talking from foreign investors, according to people familiar with the matter. Those investors include japans soft bank, chinas giant, and u. S. Equity firm general atlantic. But the deal hangs on the outcome of a courtroom fight between two uber board members. Thats your Bloomberg Busines