Transcripts For BLOOMBERG Bloomberg Markets 20160530 : vimar

BLOOMBERG Bloomberg Markets May 30, 2016

She had a little bad news today, as you know. Some reports came down that were not too good. Not so good. The Inspector General generals report, not good. Charlie the fbis investigation continues. Clinton said she would be willing to sit for an interview. The news also comes as Bernie Sanders closes in on Hillary Clintons lead in california. Joining us, a political reporter who focuses on clinton, and from washington, Steven Lee Myers of the times. Let me begin with amy, where are we in day two of this story . Amy the Clinton Campaign faces a central challenge, her trust numbers. The latest New York Times poll, 64 of registered voters said they do not trust Hillary Clinton, the same amount as donald trump. They are wondering, how do we overcome that . That challenge has collided with this new report that is in some ways very damning, and the most damning because it plays right into the narrative that donald trump is trying to craft of her, as not being trustworthy. As finding ways to get around the rules. Charlie Steven Lee Myers, what do you think . Steven i think a lot of people are still digesting the report. The report is one of several coming. Judicial watch, a conservative watch group is doing depositions now, seeking more information about why she created this private server. Who knew about it, what were the security risks involved. On top of the fbi investigation, which is also coming down the pike. I think the Inspector Generals report is only the first in what is bound to be more controversy surrounding her use of the server. Charlie are you surprised by the response . You would think they would want to put this behind, but if you are answering in a way that makes people question your response, you are not putting it behind you. Steven i think all along for the campaign, they have tried to play this down, saying this is something previous secretaries have done, specifically colin powell, using an email account. But what the report did was undercut some of the justifications or explanations that they had made, that she herself has made, that this was not approved by the state Department Security Records Management officials. And she had not asked. If she had asked, it would not have been approved. The report into all the details make it clear that it created an awkward situation for people in the department to try to accommodate this server. Not everybody knew about it. You see situations in which people are trying to figure out how to work around that. That added, i think, to some of these surprised that came out of this report. These were not things that we knew, and it did suggest that there was more of an effort to avoid the scrutiny of the emails that would be expected of official records. Charlie do you believe, amy, that she knew it would not be approved . Amy there is a line in there that says that an aide expresses concern about the private server, and she says she is willing to get a second device or she is willing to get an official email address, just as long as the personal never gets out. That line to me was particularly damming. It added to perceptions that she was keeping this private server to keep her correspondence private. As stephen said, other secretaries of state have done that. Colin powell has done that, but he is not running for president against an opponent trying to craft him as crooked. Also, they have tried to put this behind them. Last summer, the email dogged her campaign, and she issued an apology, saying sorry that people were confused. Finally that looked like it was not cut it and she finally apologized almost a year later he it is still haunting her candidacy. Charlie is there division in the Clinton Campaign as to what to do . Amy i think they are trying to figure it out as they go. There is a lot of division in terms of how to confront trump, and how much you sort of play into him. But i think steven is right. They are trying to say that every secretary of state has done this, that it was not outside usual practice. Charlie you would think she would want to sit there and answer every question and sort of exhaust the thing. As the late Geraldine Ferraro did. Amy like the pretty in Pink Press Conference over the cattle futures, right. Remember, she did that. Before she started running, she had that press conference at the united nations, which was an onslaught of questions about the emails, and she gave cautious legal responses. That press conference did not go over well. People said she looked defensive. Obviously, we are still talking about it. It did not squelch the criticism. I am sure they are wondering what the benefit was at those press conferences when they tried that. Charlie steven, what can she hope for in this . Steven because of the legal processes underway, the fbi investigation, a number of Court Hearings for Additional Information about the emails, i think the best she can hope for is that there are no more revelations about what was known and who knew it when. There are serious questions raised in the Inspector Generals report about adhering to federal law, to the guidelines for preserving records, for taking security precautions. There is an email that went out under her name that they cite, talking about the risk of using your personal email in conducting official business, even as she was continuing to do that throughout her tenure. I think the best that they can hope for at this point is that nothing more scarring comes out than what has already. Charlie i assume they would hope also that if the fbi report comes out and she is testified, which obviously would bring a huge amount of attention, the fbi would come out with a report that would suggest that she did nothing that was damaging in terms of National Security or the like. Amy, help me out. Amy i would say one of her strongest points ever in this campaign was when she sat down for 13 hours of testimony in the benghazi hearing. So if pressed to answer questions publicly, i think thats actually a good format for her. It makes voters think she is being transparent. She is being bullied. She walked away from benghazi the winner. Steven that was very much seen as a politicized hearing, even a partisan display, from both sides. The fbi investigation is going to be hard to portray that way, and it also wont be public. They wont put out a report, necessarily. They will make a recommendation to the department of justice on whether or not they believe any crimes were committed, and it will be up to the department of justice to decide whether to bring any cases. That could go any number of ways. Some could be incredible nightmares for the campaign. But even the fact of an interview with an fbi in the middle of a president ial campaign certainly is not a good optic for the campaign, and i am sure they will hope that the fbi decides there were no crimes committed, and at this point we dont know what they are going to do. Amy steven makes a good point. So much of her response is that her republican adversaries are blowing this out of proportion to her hurt during a political season. So the report yesterday was particularly damning because it was from her own state department. Charlie can Bernie Sanders win in california . Amy it was looking impossible until recently. New polling shows they are in a dead heat. I still think he is an underdog. The Clinton Campaign intended to shift all of its resources into the general election by this point, and they said yesterday that they would be going on air for ads in california. This was unheard of a few weeks ago when we thought that everything was going to be pushed to ohio, florida, pennsylvania. Places where they are ready to take on donald trump. Charlie and what about trump and sanders in a debate . Amy that would be fine. Trump said in his press conference that they would do it for charity. If they raised 10 million, they would do the debate. Bernie is having money problems. I think they are looking for free media, and what could be more free media than debating trump . Charlie thank you, amy. Thank you, steven. We will be right back. Stay with us. We begin the week with politics. Hillary clintons email server is in the news. There had been more incidents of violence at donald trump rallies, and there may be one more debate before the california primaries, but it is not one that everybody expected. Mike allen is here with that and more, the chief correspondent of politico. And the editor of the playbook blog. Welcome. Mike thank you for having me. Charlie we know that donald trump has reached enough delegates. When will Hillary Clinton reach the same point . Mike this is the amazing reversal of fortune. Remember when this process started . We thought there was one viable democrat and 17 republicans, and now she is having to go to the very end, Bernie Sanders pushing her, looking stronger, getting more coverage. Last weekend, this saturday night live segment had Bernie Sanders and Hillary Clinton in a bar at closing time and sanders wouldnt leave. That was a great set up. Charlie what is wrong with the Clinton Campaign . Is it the candidate . Mike it needs excitement. There is such an excitement deficit between trump and her. The dilemma for sec. Clinton is cautiousness, one thing missing from Hillary Clinton is her brand. You would assume that in these times, that is what people want, but it is not. You can remember me saying this fall to you, when we had the summer of trump and the fall of trump, i used to say, at any moment, something could happen in the world that would remind people that this is a real job. And then we had the attack in paris, and trump went up. So people want or at least a large number of voters want the two are tied in national polls, nothing any of us saw coming, and the white house did not see it coming. We were talking to them the other day. They were surprised by how quickly it has become a neckandneck race, and by how quickly republicans have closed ranks behind donald trump. Charlie you told me on the phone the other day, this foretells the next five months. Mike trump, making accusations against bill clinton that no one has. A picture of bill clinton with the cigar, telling the Washington Post that he is going to start looking to conspiracy theories. Charlie vince foster . Mike yes. That is a dilemma for the Clinton Campaign, do you respond . If you do not, you are accused of making a swift boat mistake. But on the other side of that coin, you could spend the next five months talking about things you dont want to talk about, that you dont want to remind voters of. Charlie and you dont want to become donald trump. Trying to attack him the same way he attacked them. Marco rubio tried that, and it did not work for him. Mike when the egyptair plane went down, and donald trump right away tweeted that it was terrorism, at the time we did not know what it was. Charlie and still dont. Mike exactly. But then you saw Hillary Clinton talking about the plane and terrorism. How to look strong and not play trumps game is a difficult needle to thread, and they have not yet cracked that code. Charlie i have friends of mine who are politically savvy saying if there was a major terrorism event in this country, it would play into trumps hands. Mike it no question. Politics of fear. He is going to play the security model. This will be his message at the convention. He will talk about being a family man. And interestingly it enough mike yeah, great kids. Family man, pragmatic businessman, and he will appeal to security models. He will project strength. Charlie you but i thought we said that was Hillary Clinton. Careful, serious, with a big resume. Has been there. When she ran against obama, who do you want answering the phone at 3 00 a. M. . Mike exactly. Secretary clinton has history, demographics, and resume on her side. That missing ingredient is the emotional connection. Thats how we vote. I sometimes think of life as a Student Council election. Back in the lunch room, you didnt vote for the kid with the better platform, you voted for someone because you like them. Thats how elections are. Charlie when you look at elections today, do you find that more and more people are saying, yes, yes, donald trump can win . Mike i have said a while, he had a 30 chance. That is rising. We saw in the polls that have him basically tied, we see it in so many republicans who are fighting a way to endorse him, or they say they will support him, but not endorse him, or vice versa, but so many republicans are coming around. We are seeing Hillary Clinton does not yet have a blueprint for firing back. If we were to Flash Forward and donald trump wins, mainly for demographic reasons and map reasons, seems unlikely. The political staff says donald trump would need to win seven in 10 of white dudes, including democrats. Charlie and at the same time, they point out that Hillary Clinton has a long way to go to win Bernie Sanders supporters. There are exit polls that say they feel strongly against her, even to the point of some saying they will vote for donald trump. Mike i think this will be a big story, bernie bros going to trump. It is the middle finger vote. People on the outside of mercury tainted, they do not like what they are hearing, they do not trust the system. After the convention, they are going to be taking a look at donald trump. Union members, not union leaders, but union members, distrust the clintons because of trade and nafta. Some democrats will pull the lever for donald trump. It complicates the math. Thats why the math is so screwy this time. The rust belt, bluecollar states that you can usually count on going for democrats, michigan, wisconsin, pennsylvania, those are in play. But some classic red states, like georgia and arizona, with expanding hispanic populations, those he can lose. So the chessboard has moved. Charlie thank you for coming. Mike happy memorial day. Charlie we now turn to asia. Earlier this week, the president visited vietnam, where he lifted a decadeold arms embargo. He then headed to the g7 summit in japan. He plans to make it an historic visit to hiroshima on friday. Joining me is david sanger of the New York Times. He recently returned from traveling with the president. I am pleased to have him back on this program. Thank you for doing this. I think you just got off the plane as we taped this. Thank you for coming by. Give me an overview of this trip. Put it in context. Part of it is legacy building, part of it is reminding americans that he is constantly talking about the importance of asia. David thats right. The two big parts of this trip are the vietnam side, which was what he did the beginning part of the week. Which was the first time he had gone to vietnam and was important, because he is trying to wrap vietnam into the overall strategy of the asian pivot. That has been drawing out countries like myanmar, vietnam. Where we had diplomatic relationship of 25 years. But we have not really deepened the relationship. To try to get vietnam, the philippines, others in the region to participate in this effort to jointly contain the chinese without making the chinese view it as containment. It is not an easy trick. As you can imagine. Because on the one hand, he is trying to engage the chinese, saying we understand we need to work as partners and so forth, and yet he is using facts that the chinese have been so aggressive in the South China Sea to help draw in asian nations that have not been traditional allies, that have been very reluctant partners. If you look around the region, he ended up lifting the arms embargo on vietnam, which has been in place since the 1960s. He is hoping that he will have some access to the big port during the vietnam war. He is negotiating with the philippines about getting access to bases that we are throwing out 20 to 25 years ago when i was a correspondent in asia. We never thought we would have access to it again. Hes already got a deal with the australians having access to darwin. What he is hoping to do is keep American Forces engaged in new places around the South China Sea where they are constantly going to be in chinas space. Charlie is there a specific message to the chinese that if you go this far, we will respond, both the United States and its allies . David the message is little more subtle. Each of these countries recognized a need to have a relationship with china. The trade relationship they have with china is bigger than the trade relationship they have with the u. S. , in many cases, and its part of why the president spent so much time making the case for the transpacific partnership, although the case needs to be made with congress. More so than the 11 asian nations the u. S. Has negotiated with. Charlie it is fair to say that vietnam and some of these countries have welcomed this because they are wary of chinese intentions over the long run. David thats right. The trick here is to use the chinese aggressiveness to playoff the insecurities of these countries and make sure that they recognize it is the United States with who they have the best longterm possibilities. Whats running against this is the domestic politics here. The New York Times they read, they watch your show and cnn and all that, and they see donald trump talking about how relationships in the region, including the american troop presence, should be based on whether or not these countries are financially contributing. You could argue whats missing

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