Steve bannon, controversial adviser to president is leaving the white house. Bannon has been on shaky grounds. Or weeks heres what President Trump said about bennett on tuesday during a News Conference at trump tower. President trump i like him, hes a good man. Hes not a racist, i can tell you that. He actually gets a very unfair press in that regard. Hes a good person. A good person but he is out. That craigjoins us gordon joins us from our washington bureau. Theres a lot of speculation of steve anna being on thin ice. That steve bannon being on thin ice. Thinve bannon a being ice. A couple of interviews he gave, want to the states, where he essentially said some angst that are in line with Donald Trumps agenda and some things that werent. He said essentially a war with gary cohn, steve mnuchin, this is generally not the thing you say when you have a job at the white house and you openly air this dirty laundry. Like a protest highlights bennetts position. Abandon is said to be clear that he thinks the White Supremacists are a collection of clowns. I dont think he endorsed their view. But he speaks to the grassroots conservative movement. Here is considered driving trump in that direction. There is trump giving that impassioned and explosive comments on race relations. Even the Steve Shannon steve him, and thisme is harmful to his political future. So no john kelly has never been a fan of steve bannon. John kelly is trying to create order. Together andl came today was the day they decided to part ways with Steve Bannons last day. There have been some reports bannon tendered his resignation a couple of weeks ago. Matter . If true does it i think in the grand scheme its clear, steve bannon was serving nicely for donald trump. Hughes viewed as important conservative thinker, speaker and some of the who is driving trumps agenda. Very few people walk away from a job like that voluntarily. Pretty reliably a few days ago the trump actually supported some of the stuff that bannon said in the interviews. Its a little topsyturvy. We are trying to get to the bottom of all this but i think the one thing we know for sure is john kelly is the new chief of staff, steve bannon is not helpful to the cause. Now steve bannon is gone, now we can do the math and john kelly had a big hand in his departure. Craig gordon joining us from the bureau in washington. We want to continue this discussion. We are joined by former White House Communications director under president barack obama. Thank you for joining us, we appreciate your time. We have had a lot of shakeups in this white house so far. If is the departure of steve bannon more significant and why so . Where peopleay should be very wary. Bannons departure is important for a number of reasons. A part of general kellys attempt to bring a measure of order and discipline into the west wing and into the decisionmaking process to the extent he can. A buddy whonnon was is outside of the decisionmaking process. Somebody who is outside of the decisionmaking process. Thing that is important is he viewed himself as a principal instead of a staff person. The interviews he gave this week , which were not run through the White House Communications office were very example of that. Extent bringing order to an extremely chaotic disordered process. But its never going to change because the president is going to change. It wasnt steve bannon who stood at that podium on tuesday, it was the president. This is what i want to pick up on. He stood on the podium and said things that got the congressman pretty upset. Mean in hisat capability to speak with President Trump and try to tailor his message a little more to avoid some of the situations this week . Theres a reason that twitter says real donald trump, because you get the unfiltered reality of Donald Trumps thinking. In that white house, including the president s own relatives have been limited that have limited influence over what at the end of the day comes out of his mouth and onto his twitter handle. At least in the shortterm it appears for Economic Policy and and some of the internal policy classes. They were at least be up to control the information and conversation as it reaches the president. You departed during that first full year in office. When you look at the beginning of that administration versus the beginning of this administration, and look at the staff turnover we have seen, how would you compare it and how would you compare it historically . You cannot compare this administration to any previous administration. Previous and ministrations have far more in common with each other. With any that have come before that. There are certain processes in the white house and third and certain ways of doing things and making sure the information has been vetted. Making sure whatever comes out have beente house reached in the government. Those have been shared by the administration and processes. This has never had that kind of structure. Thisften one part of government will say one thing and another part of the government will contradict it. So i dont think you can compare the Trump White House to any previous white house. We have heard about different factions in the white house and im wondering whether this beent the part sure has created then this will be the end of the departures or are you expecting further departures in the near future . I am not privy to the inside workings of this white house. I only know what i have read. It appears the initial group of people who have been warring with each other have all departed. Process thatnusual the people who come into an administration onto the right fit, particularly the people who have been campaign people. Differentre very things, campaigning and governing are two very different paths and require different skills. As long as the president behaves the way he does in terms of playing outside of the established lanes that you will continue to see a degree of turmoil that is inescapable. Thank you very much for your time we are getting reports that bannon is getting ready to go back to breitbart. Lets get a check on where stocks are trading. Reactiona wishywashy on this news that steve bannon is out on this white house position. Hour we dide last have three major averages turning higher after declines earlier today. That the s p 500 and the nasdaq only slightly higher coming off of the highs. Knowings not really quite what this means. Its not the first departure in recent times. This is 3203 or the chart. Was goingt gary cohn to perhaps resign from his that the s p 500 took eight it lower. Perhaps the next in line. We see the s p 500 took a leg lower. Taking a leg higher on this come investors try to figure out what all this means. Oil stocks, this is a huge spike we had crude up 3 . He told me this is short covering, seeing this strong of a spike higher. The gain on all of these headline suggesting that oil traders see this as a removal of uncertainty for the growth in commodity. Another interesting day in the driven i waskets happening in d. C. A lot of news happening outside of what we are hearing from the white house. Two people have been stabbed to death in an attack on finland. Knife about 100 miles west of the capital, the suspect is in custody. Officials say it is too soon to know whether todays attack was an act of terror. Rex tillerson is condemning hate bigotry and unamerican. An american was killed in that deadly attack in barcelona. Weeks press rcep and these we express our some of these to the loved ones and the loss of life and we offer our thoughts and prayers to the families as they will be dealing with a very tough few days ahead of them. Secretary tillerson called racism evil and pledged to diversify the openly white francs of the senior diplomatic corps. Local residents and tourists have found many ways to pay their respects to the victims of yesterdays attack. People started putting flowers and candles in columns trees in lamp posts. Many hospitalized in critical condition. Steve bannon is out as President Trumps chief strategist. As bannondia reports wrote mr. Trumps 2016 campaign was removed after clashing with members of mr. Trumps family and other white house officials in recent weeks. Powered by more than 2700 journalists and analysts in more than 120 countries. In the wake of Steve Bannons departure we will be joined by the former treasury and fed official who will weigh in on the path for for President Trumps economic agenda. This is Bloomberg Markets. Questions remain about President Trumps ability to focus on the economic agenda. A four treasury official said trump classes with Business Leaders and lawmakers could hinder progress in issues such as tax overhaul and Infrastructure Spending. I think the president has a long hill to climb. He dug a hole for himself. Going to war with the leadership on the hill. The policy agenda is really unclear. Joining us is seth carpenter, a former treasury and fed official who is now chief u. S. Economist. My first question is what has changed . About have been talking turmoil on dust turmoil in the white house. People say its politics. Do you buy that . Usually when we think about market changes the question is what has changed . A bit of chaos. A month or so ago what has changed is chief of staff kelly is clearly making some substantial changes and i change theple calculus in what might have been economist in this white house. Wouldnt changes for the better in terms of getting policy done because you are supposed to bring order to the white house . With this white house in particular it is a bit unorthodox. The white house is being operated in a different way. Change as a result of uncertainty . Departing andnon unclear what effect that will have. You still have this rift between the white house and congress, even the president s own party. Thats a really impressed really important point. Its a necessary requirement for policy changes. There is a challenge between what is going on in the white house. Unitys a huge amount of in the republican party. Economistsds of surveyed by bloomberg believe there will be some sort of tax planor part of a tax passed by the end of this year. Do you fall into that camp . When you make the question sufficiently open like some sort of something, then it increases the chance of it happening. It is tax reform, legitimate tax reform to overhaul the admittedly very complex task system is unlikely to happen in very in any material way. I think they come up show for it because come up short because of the lack. It, would take a run at come up short and do a tax rate cut early next year. Maybe not even next year, then all for economic growth, how contingent is your forecast for growth on something getting done in washington . The ebs Economic Outlook is not in many ways particularly remarkable. We have had very remarkable growth. The rest of this year is roughly the same. Little Economic Impact from any fiscal policy coming out of washington. The stock market where it is currently valued has priced out any sort of tax plan or Infrastructure Spending plan that is going to take place within the next year or two . That is a very hard question. Equity prices are now high by historical standards. I think one question that makes it hard to differentiate policymakers from fundamentals is our economies going to continue to grow and that the market is going to realize the longterm Interest Rates we have are there for a long time. That should give some support for the prices overall. There is a mix of views. People are giving up on some meaningful stimulus but i dont think it is 100 gone. To get back to the core economy versus policy, what are we seeing in retail sales. We havent seen retail sales really rollover. Consumer confidence continues to be relatively strong. If we continue to see these retail side retail sales now one would imagine the confidence would have to follow suit. Is that going to eventually cause gdp as well . When they put together their outlook for the economy retail part, absolutely critical of a like 70 of the u. S. Economy. Our view is the household sector is reasonably strong if you look at the jobs reports. They have been doing that quite well. If you do see Material Weakness in Household Spending you do have to worry. Economist. S. We will have much more on our top story today. Steve bannon is out with the latest white house exit means for Capitol Hills latest agenda. This is bloomberg. Still ahead we will have much more on the departure of steve bannon from the white house. What drove the reversal . E will have that next it is friday and it is bloomberg. From bloomberg World Headquarters this is Bloomberg Markets. Commodity markets are closing in new york and it has been an interesting day for oil. Trading lower just before noon eastern and then a pretty huge spike higher. It is now up 3 . This new to signs that oil supplies are tightening to some degree. Says rent spreads are ripping are dripping. Although it did parent oil down 1 over the last five days. At one point it was down 4 on the week. Gains after news that steve bannon is out at the white house. Futures in steady decline on the trading day. Again to theack up unchanged level. We see it coming back in the green and bouncing around. Lets dive into the departure of steve bannon. It had been on shaky ground for of whenpresident President Trumps new chief of staff went on a personal review of the staff. He called for an economic war with china. Lets bring in Bloomberg National political reporter maying reports that amn return to a lead editorial position at right guard news, known as an altright publication, and that he basically would become that he has a killing machine in Breitbart News and is willing to wage war. There is a tweet saying from a source close to bannon democrats have seized control of the white house. How it is his ouster change President Trumps support with numberional base . One, i dont think this has a meaningful impact on President Trumps support with the nationalist native base. President has that Campaign Apparatus in place, he has been message that is largely around stoking grievances over trade and immigration. Around global elites. That doesnt necessarily change. Whethere in that basis to President Trump is firing bannon and a shift on his part away from that. To me itt seem likely reflects a major shift in his eye at the dish in in his ideological thinking. Is this more just and execution shift or methodology shift . Evidence thereve is a policy shift or a shift in the thinking of this administration or making things more discipline and focused, i would not assume that another persons departure after many high profile personal departures in the white house necessarily mean a shift in the ideological thinking. Mentioned banning mentioned bannon may be returning to his home in breitbart. Breitbart is an influential publication. Himas pretty supportive of and openly so during the campaign and president ial primary. Been a power of for President Trump and it is whatknow what an and bannon is thinking. There was an article comparing President Trump to the next arnold schwarzenegger, which is not a favorable comparison. We have started to see more conflicts. Oblems and questioning the president s ousternce, does bannons change that at all . Before he joined President Trumps Campaign Staff he rammed basically forcing them into a position they considered dangerous and ideological come attacking them as sellouts when they didnt hold the line on those positions. Republicans are more happy than not. A lot of hope things will change in the white house. That hope has been around for a long time. That direction comes from the very top of the white house. I want to do followup on that, the idea there has been a toplevel departure. This one its more significant than others or just one among the turmoil . It is probably more significant than others in a. Ertain sense steve bannon represented the heart of the message President Trump carried in the campaign. The person in the white house who is most similar to steve bannon is the president of the united states. Likemindede very in their method. And building a wall and things like that, the question will be does this signal a change in president s thinking . Dont think so but that remains to be seen. Lets check the headline on the bloomberg first word news. Senator joe manchin from West Virginia says he is not joining President Trumps cabinet. According to people familiar with the discussion the idea serves as a possible way to a successor. Senator manchin said thats not going to happen. Hes facing a tough Reelection Campaign in 2018. 2012 republican president ial nominee mitt romney issued a statement this morning, one that fabric and the called on the president to apologize. The on the africanamerican republican in the senate and barb and bob corker. Mother of the woman killed at that rally says she will not speak to the president. Comparinger comments protesters to White Supremacists is unforgivable. She says the first call a mr. Trump they had would the chances of finding survivors in the debris behind the mudslide or diminishing by the day. More than 400 bodies have been recovered in and around the capital. 600 people are missing and feared dead. 100 vic