今日の市場で何を見逃したのか？投資家が知っておくべきこと (What'd You Miss in markets today? Here's what investors should know)

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FROM THE CLOSING BELL.
I AM SCARLET FU.
JOE: I'M JOE WEISENTHAL PILLAR
-- WIESENTHAL.
MATT: AND I'M MATT MILLER.
♪
SCARLET: U.S. STOCKS CLOSING
LOWER THIS AFTERNOON AHEAD OF
JANET YELLEN'S SPEECH TOMORROW.
JOE: THE QUESTION IS, "WHAT'D
YOU MISS?"
SCARLET: THE WAITING THE SPEECH
TOMORROW.
AND WE SPEAK TO NARAYANA
KOCHERLAKOTA FOR THE NEXT HALF
HOUR.
JOE: PLUS, TURKEY EMERGING FROM
THE ATTEMPTED TO A STRONGER
POWER.
WHAT IS NEXT FOR ITS
RELATIONSHIP WITH THE U.S. AND
RUSSIA?
MATT: AND HELICOPTER -- COMING
TO JAPAN.
HE SEES THE DOJ ACTING AFTER THE
YEN'S GAIN.
♪
SCARLET: WE BEGIN WITH OUR
MARKET MINUTE.
STOCKS CLOSING LOWER BEFORE
JANET YELLEN GIVING HER SPEECH
TOMORROW MORNING.
IF YOU LOOK AT THE INDUSTRY
GROUPS IN THE S&P 500, FIVE OUT
OF THE 10 ARE HIGHER OR LOWER AS
THE CASE MAY BE BECAUSE IT
FINISHED DOWN.
MATERIALS WHERE THE BEST
PERFORMERS, HEALTH CARE THE
WORST PERFORMERS.
OVERALL, THIS IS THE LOWEST
LEVEL SINCE AUGUST 4.
IT WE BEEN KEEPING TRACK OF HOW
LONG THE S&P IS TRADING.
WE HAVE HAD ENOUGH OF THIS.
34 DAYS.
JOE: WITHOUT A 1% RANGE.
YES, IT IS QUIET.
MATT: THERE IS A LOT OF NEWS,
WHICH IS INTERESTING.
WE HAVE A LOT OF NEWS AND A LOT
TO TALK ABOUT ON THE MACRO LEVEL
AND THE COMPANY LEVEL, BUT THERE
IS NOT A LOT OF MOVEMENT IN
STOCKS OR BOND YIELDS.
JOE: VERY QUIET.
ONE LOSER TODAY WAS THE HEALTH
CARE STOCKS, OF COURSE AT THE
CENTER OF ALL OF THAT
CONTROVERSY.
MATT: I HAVE THIS OPEN TO SHOW
YOU THAT.
LET'S TAKE A LOOK AT THE LOSERS,
ABBOTT LABORATORIES.
INTERESTING THEY ARE DOWN,
BECAUSE THEY WERE UP EARLIER.
AND CARSON BLOCK SAID THAT THEY
ANNOUNCED SHORTING SAINT JUDE
AND THEY ARE LONG ABBOTT
LABORATORIES, BECAUSE THEY WANT
TO BREAK UP THE PURCHASE AND
THAT ABBOTT LABORATORIES
SHAREHOLDERS SHOULD BE RELIEVED.
MYLAN DOWN AGAIN TODAY.
IT HAD RECOVERED EARLIER IN THE
DAY, BECAUSE IT WAS CRUSHED OVER
THE WEEK.
BUT IT COULD NOT MAINTAIN GAINS.
IT IS DOWN AGAIN.
OPENING AND CAN
SEE THE HEALTH CARE STOCKS ARE
THE BIGGEST LOSERS OF THE DAY.
CONSUMER DISCRETIONARY'S ARE
ALSO BIG LOSERS.
JOE: A LOOK AT GOVERNMENT BONDS,
PRETTY QUIET FOR THE TREASURIES
TODAY.
OF COURSE, ALL THE ACTION ON
JANET YELLEN TOMORROW.
MODEST INCREASES IN YIELDS IN
THE TWO-YEAR AND THE 10 YEAR.
A LITTLE BIT OF FLATTENING.
SCARLET: IN TERMS OF CURRENCIES,
TAKE A LOOK AT THE SOUTH AFRICAN
CURRENCY.
THE PRESIDENT ISSUED A STATEMENT
OF FULL CONFIDENCE IN THE
FINANCE MINISTER, BUT THAT DOES
NOT DO MUCH FOR THE RAND.
WE SAW THE DOLLAR DROPPED VERSUS
THE RAND, BUT THEN WE SAW THE
RAND WEEKEND.
IT IS THE WORST PERFORMING
CURRENCY THIS MONTH.
THE SECOND WORST IS THE CHILEAN
PESO.
A GAIN THE MOST IN TWO WEEKS.
IF PROMPTED DOLLARS TO BE
TRADED.
AND THURSDAY IS TYPICALLY A GOOD
DAY FOR THE CHILEAN PESO,
BECAUSE THE MINING COMPANIES
SELL DOLLARS TO RAISE THE MONEY
AND FOR PAYROLL COMMITMENTS.
SEBASTIAN FOUND THAT TYPICALLY
THE PESO DOES WELL, GAINING ON
THURSDAYS AND FALLING THE OTHER
DAYS OF THE WEEK.
JOE: LET'S TAKE A LOOK AT THE
OIL MARKET.
, ALLW GAINS TODAY AND HOPE
THESE ABOUT PRODUCTION, BUT
HOPING IRAN COULD TAKE PART IN
CURBING OIL PRODUCTION.
WE SAW A GAIN.
WE WANT TO LOOK AT SOME
TECHNICAL THINGS HERE.
WE OF THE PURPLE LINE OF THE 50
DAY MOVING AVERAGE.
THE GREEN LINE IS THE 100 DAY
MOVING AVERAGE AND THERE SEEMS
TO BE RISK THAT THEY ARE GOING
TO CROSS BELOW THE 100.
EVENT.D BE A NEGATIVE
IT COULD BE NEGATIVE MOMENTUM.
MATT: LIKE A DEATH CROSS.
JOE: WE WILL KEEP AN EYE ON
THAT.
SCARLET: LET'S TAKE A DIVE INTO
THE BLOOMBERG CHARTS.
YOU CAN USE THE FUNCTION AT THE
BOTTOM OF THE SCREEN.
I AM LOOKING AT TREASURIES,
TALKING ABOUT HOW SLOW IT IS.
ANOTHER DAY OF LOOKING AT IT.
WE ARE LOOKING AT THE GREEN
CIRCLE RIGHT THERE.
IT IS A RANGE OF LESS THAN THREE
BASIS POINTS, THE TIGHTEST MOVE
SINCE IT JUNE.
IT IS ALSO THE SECOND SMALLEST
RANGE OF 2016.
THE SMALLEST WAS BASICALLY WHEN
IT WAS CLOSE.
THE YELLOW CIRCLES INDICATE WHEN
THE MARKET WAS CLOSED.
WE ARE TRADING IN THE SMALLEST
RANGE SINCE IN JUNE.
SO VERY LITTLE HAPPENING IN THE
BOND MARKET.
MATT: THAT IS CRAZY.
JOE: I AM LOOKING AT MY FAVORITE
CHART MY WHICH I DO MOST
THURSDAYS.
THE JOBLESS CLAIMS.
THIS IS THE NON-I JUST DID
VERSION.
-- NON-ADJUSTED VERSION.
YOU CAN SEE THE TREND, WHICH
CONTINUES TO BE LOWER.
WE ARE AT A FOUR DECADE LOW AND
WE GO LOWER.
THIS IS THE MOVING AVERAGE.
IT IS AT THE LOWEST IT HAS BEEN
SINCE THE CRISIS.
IT IS A STABLE TIME.
SCARLET: I ONLY LOOK AT THE
FOUR-WEEK MOVING AVERAGE NOW.
JOE: FORGET ABOUT THE WEEKLY
NOISE.
MATT: THE LABOR MARKET IS
STRONG.
I AM LOOKING AT INFLATION.
PRICE STABILITY IS THE SECOND
THING THAT THE FED WILL LOOK AT.
AND BY THE WAY, THIS IS 3034 ON
THE BLOOMBERG TERMINAL.
THE CLEVELAND FED CPI IN BLUE,
AND WE ALSO HAVE THE PURPLE
LINE.
AXES, SAYTWO SEPARATE
CANNOT REALLY SEE THE STRENGTH
OF THE WHITE LINE.
3.6%TLANTA LINE IS SHOWING
GDP GROWTH ON THIS QUARTER, SO
IT LOOKS LIKE WE HAVE DECENT
GROWTH AT LEAST FROM THE ATLANTA
GDP FORECAST.
WE HAVE INFLATION THAT IS GOING
UP TOWARD A LEVEL THAT THE FED
SHOULD BE HAPPY WITH.
IT IS 1.6%.
AND WE HAVE A LABOR PICTURE AS
JOE SHOWED THAT IS FANTASTIC.
IF THE FED IS DATA DEPENDENT AND
IT LOOKS AT THE DATA WITH THE
TWO MANDATES, MAYBE IT SHOULD BE
NORMALIZING THE INTEREST RATES.
SCARLET: THAT IS WHAT A LOT OF
PEOPLE SAY.
LET'S GET TO BREAKING NEWS WE
HAVE BEEN FOLLOWING ALL DAY.
AND MATT REFERENCED IT EARLIER.
MUDDY WATERS TAKING ON ST. JUDE
MEDICAL.
THEY PUBLISHED A REPORT THAT
SAYS THAT THE PACEMAKERS ARE
EXPOSED TO HACKING BRONER
ABILITIES.
CARSON BLOCK SAYS THAT CHANGES
MUST BE HELD ACCOUNTABLE.
>> THIS APPEARS TO BE A COMPANY
THAT FOR YEARS HAS PUT PROFITS
BEFORE PATIENTS WHEN IT COMES TO
SEPARATE SECURITY.
TO WE THINK IT IS IMPORTANT
MAKE SURE THAT USERS ARE
NOTIFIED OF THE RISKS.
AND TO HOLD A PUBLIC THING
ACCOUNTABLE.
-- PUBLICLY ACCOUNTABLE.
SCARLET: THEY DISCOVER THE FLAWS
THANKS TO A SEPARATE SECURITY
FIRM.
HERE TO DISCUSS THE STORY IS A
FORMER -- ASSOCIATE.
BASED ON WHAT YOU HAVE HEARD
FROM THE IS YOUR REACTION TO
THESE ALLEGATIONS FROM CARSON
BLOCK?
>> I READ THE NOVEL.
IT WAS A FLASH IN THE PAN.
ISSUEERE REALLY IS AN
HERE, RATHER THAN PICKING UP THE
PHONE AND SHORTING THE STOCK,
YOU SHOULD CALL THE FDA.
SCARLET: IF THE RESEARCH FIRM
THAT FOUND THE LOOPHOLES
APPROACH THE FDA WITH FINDINGS,
WHAT WOULD THE RESPONSE HAVE
BEEN?
>> THEY WOULD HAVE EXPLAINED HOW
THEY FOUND THE PHONE OR BUDDIES,
WEATHER DATA WOULD TELL AND --
WHAT THE DATA WOULD TELL AND
THEN THE FDA WOULD'VE TAKEN
ACTION.
BUT NOW IT IS A MARKET STORY.
SUSPICION THATS
THE PUBLIC HEALTH IS NOT
PRIMARY, IT IS SECONDARY.
JOE: WHEN IT COMES TO GADGETS
AND HACK ABILITY OF GADGETS,
OBVIOUSLY MORE AND MORE OF OUR
LIVES ARE GOING TO BE IMPLANTED
DEVICES THAT ARE CONNECTED TO
THE INTERNET.
HOW ON THE BALL IS IN THE FDA
WITH THAT?
>> I WOULD NOT SAY THEY ARE ON
THE CUTTING EDGE OF TECHNOLOGY,
BUT THEY KNOW HOW TO RELATE
MEDICAL -- REGULATE MEDICAL
DEVICES.
HOW THEY BECOME MORE
INTERACTIVE, HOW THEY OPERATE
WITH SYSTEMS OUTSIDE OF THE
BODY, THEY NEED TO LEARN
QUICKLY.
THEY NEED TO GET CONSULTANTS AND
REALLY UNDERSTAND WHAT THE
POTENTIAL NEGATIVE DOWNSIDES
COULD BE.
SCARLET: DISCUSS THE EVOLUTION
OF HACKING FITS INTO THE FDA
PRIORITIES WITH NEW PRODUCTS?
HOW HAS IT CHANGED?
>> DEVICES HAVE BECOME MORE
COMPLEX, EVEN IN THE MOST RECENT
FIVE YEARS.
THEY NEED TO REACH OUT TO
EXPERTS WHEN THEY ARE LOOKING AT
THESE DEVICES, THEY NEED TO KNOW
WHAT THE DEVICE DOES IN EVERY
RESPECT.
NOT ONLY HOW IT INTERACTS WITH
THE PARTS FOR A DRUG, BUT ALSO
HOW IT INTERACTS WITH OUTSIDE
TECHNOLOGY.
SCARLET: WOULD YOU WORK WITH A
FIRM LIKE MEDSEC?
>> YES.
YOU NEED TO WORK WITH OUTSIDE
FIRMS.
MATT: CALLING IT A SEPARATE
SECURITY FIRM I FIND INTERESTING
-- CYBER SECURITY FIRM I FIND
INTERESTING, BECAUSE THIS WAS
STARTED BY A FORMER HEDGE FUND
EMPLOYEE, THEY ARE LOOKING FOR
WEAKNESSES SO THEY CAN PROFIT
OFF OF WEAKNESSES, LIKE THE
STRATEGY WITH MUDDY WATERS.
DO YOU THINK WE COULD SEE
RELATIONS BORN -- REGULATIONS
BORN OUT OF THIS INVESTMENT OR
BUSINESS MODEL?
>> THERE NEEDS TO BE
REGULATIONS.
AT THE END OF THE DAY, THERE ARE
NO PEOPLE THAT HAVE NOT BEEN
HACKED FROM OUTSIDE SOURCES.
THIS IS ALL ABOUT MAKING STOCK
MOVE ONE WAY OR ANOTHER.
AND THAT IS NOT THE WAY TO MOVE
THE FORWARD PROPERLY.
MATT: I WANT TO READ THE
STATEMENT FROM SAINT JUDE.
IT IS IMPORTANT TO TELL YOU WHAT
CHANGES IS SAYING.
THE CHIEF TECHNOLOGY OFFICER
SAYING, THE ALLEGATIONS ARE
UNTRUE.
THERE ARE SEVERAL LAYERS OF
SECURITY IN PLACE.
WE CONDUCT SECURITY ON AN
ONGOING BASIS AND WORK WITH
EXPERTS SPECIFICALLY AT HOME AND
ON ALL DEVICES.
SAINT JUDE TAKES THE SECURITY OF
DEVICES VERY SERIOUSLY AND
CONSUMER INFORMATION IS A HIGH
PRIORITY FOR US.
AND WE WILL REMAIN VIGILANT TO
THE EVER INCREASING
SOPHISTICATION OF THOSE SEEKING
UNLAWFUL ACCESS OF DATA.
THERE IS AN ONGOING PROGRAM TO
PERFORM TESTING ON MEDICAL
DEVICES AND NETWORK EQUIPMENT.
SCARLET: AND THE OTHER BIG STORY
WE WANT TO ASK ABOUT IS ON
MYLAN.
MATT: IT IS A FASCINATING STORY,
IT IS PRICE GOUGING.
MYLAN IS UNDER THE MICROSCOPE.
WHAT IS FASCINATING IS THEY HAVE
RAISED PRICES TO $600 AND PEOPLE
ARE APPALLED BY THAT.
THEY ONLY GET $270 FROM THAT.
AND THERANCE COMPANY
BENEFITS COMPANY ARE GETTING
$334, SO YOU CAN SEE, THE
PATIENT'S PAIN THE FULL 600 --
PAYING THE FULL $608 MESKO IT
LOOKS LIKE MANY PEOPLE ARE
SHARING THE GAINS.
>> I THINK THE OPPORTUNITY OR
THE POSITIVE THING IS THE FDA
CAN INSERT COMPETITION INTO THE
MICROPLATES -- MARKETPLACE.
THESE ARE DRUGS THAT ARE OFF
PATENT, THERE IS NO GENERIC.
THERE'S BEEN NO GENERIC COMPANY.
SO WHEN YOU BRING THOSE INTO THE
MARKET PLACE, THE PRICES
PLUMMET.
SO THIS IS AN OPPORTUNITY TO
PRIORITIZE THE GENERICS AND
OBVIOUSLY AT THE PENS -- EPIPENS
AND THE CEO ARE GETTING
ATTENTION.
JOE: OK, THANK YOU.
SCARLET: BEFORE WE HAD TO BREAK
-- HEAD TO BREAK IT, GAMESTOP
SHARES FALLING.
THEY ARE DOWN ALMOST 11% IN THE
SECOND QUARTER.
THAT IS DOUBLE WHAT THE EXPERTS
ESTIMATED.
THIS IS BLOOMBERG.
♪
♪
JOE: I AM JOE WEISENTHAL.
"WHAT'D YOU MISS?"
THE FORMER PRESIDENT OF THE
MINNEAPOLIS FED SAYS WE NEED TO
HEAR A CREDIBLE PLAN FOR
MANAGING THE ECONOMY.
HE JOINS US FROM NEW YORK.
THANK YOU FOR JOINING US.
WHAT DO YOU HOPE TO HEAR FROM
JANET YELLEN TOMORROW?
: THANK YOUCHERLAKOTA
FOR HAVING ME.
TOHINK IT WOULD BE USEFUL
HEAR HER THINKING ABOUT HOW THEY
PLAN TO APPROACH THE PROBLEM OF
INTEREST RATES OVER THE NEXT SIX
MONTHS-TWO YEARS.
I THINK WHAT THE FED
COMMUNICATED WAS THAT THEY ARE
PLANNING TO RAISE INTEREST RATES
AT ABOUT A QUARTER PERCENTAGE
POINT PER QUARTER FOR THE NEXT
FEW YEARS.
I DO NOT THINK THAT WAS A PLAN
THAT HAS WORKED OVER THE PAST
YEAR.
I THINK IT IS IN TATTERS.
IT BETTER WAY TO COMMUNICATE
ABOUT MONETARY POLICY IS TO
ISOLATE THE DRIVERS THAT ARE
DRIVING YOUR THINKING AND THEN
LOOKING AT OTHER MEMBERS OF THE
PUBLIC TO WATCH THE DRIVERS AND
SEE HOW THE FED WILL MAKE
CHOICES.
I DO NOT THINK IT IS A GREAT
IDEA AND I HOPE THAT JANET
YELLEN WALKS AWAY FROM THESE
TIME-BASED FORECASTS THAT WE
WER OVER AGAIN, ABOUT HOW
WILL HEAR ABOUT THESE IN 2016,
2017.
THESE ARE NOT GOOD WAYS TO LOOK
AT MONETARY POLICY.
WHEN THEY GET INTO A MEETING
ROOM, THEY SHOULD LOOK AT WHAT
THEY ARE STRUGGLING WITH,
LOOKING AT DATA FLOW, TO HELP
DETERMINE WHETHER TO RAISE
RATES.
JOE: WE ARE IN THIS TIME IN
MILITARY -- IN MONETARY POLICY,
WHERE THERE IS A DEBATE ABOUT
WHAT REALLY DRIVES INFLATION AND
WHETHER THE FRAMEWORK THROUGH
WHICH WE THINK ABOUT THESE
QUESTIONS IS ACTUALLY AN
ACCURATE ONE.
FED, YOUENURE AT THE
ARE FAMOUS BECAUSE YOU
REORIENTED YOUR APPROACH, YOU
ARE SEEN AS HAWKISH, NOW DOVISH.
THAT IS RARE IN PROFESSIONAL
CIRCLES FOR ANYBODY TO DO A TURN
LIKE THAT.
CAN YOU EXPLAIN HOW THAT
HAPPENED AND WHY THAT IS NOT
, IN COMMON IN ACADEMIA
ECONOMICS, OR THE FEDERAL
RESERVE?
: WHEN I KOCHERLAKOTA
FIRST JOINED THE FED IN
MINNEAPOLIS, I FELT THAT THERE
WERE STRONG FORCES THAT WOULD
RETURN INFLATION TO TARGET
RAPIDLY, REGARDLESS OF
UNEMPLOYMENT, OR SLACK AS WE SAY
IN THE LABOR MARKET.
AS I SPEND MORE TIME WATCHING
ASSESSMENTOW, THAT
TURNED OUT TO BE MORE AND MORE
WRONG.
AND I ALSO WAS CONCERNED THAT
THERE MAY NOT BE MUCH SLACK AND
THAT PROVED TO BE WRONG.
WHERE DID IT PROVE WRONG?
THERE WAS A LOT OF WORK ON
--IMATING SLACK COMMITTEES
SLACK, THIS IS MICRO WORK.
I WAS MISSING HIGH ON INFLATION,
SO YOU NEED TO REEVALUATE WHERE
YOU ARE ON THAT.
OTHERS DO NOT MAKE THE TURN?
EVERYBODY MUST COME INTO THESE
DECISION-MAKING PROBLEMS WITH
THEIR OWN PERSPECTIVE.
ASPPROACH THESE QUESTIONS
WHAT WE CALL A BAYESIAN, YOU
HAVE A LOT OF DIFFERENT MODELS
AND POSSIBILITIES OUT THERE IN
TERMS OF HOW THE WORLD WORKS AND
YOU ARE ALWAYS PUTTING WEIGHT ON
ALL OF THEM AND AS DATA COMES
IN, IT COULD CHANGE THE WAY TO
YOU ARE PUTTING ON ONE VERSUS
THE OTHER.
WHEN I HEAR PEOPLE TALKING ABOUT
THE ECONOMY, THEY ARE WEDDED TO
ONE FRAMEWORK AND THEY WILL
STICK TO IT UNLESS SOMETHING
BLOWS UP.
MY OWN THINKING IS MORE FLUID I
WOULD SAY.
SCARLET: WE APPRECIATE YOU
EXPLAINING THE FLUIDITY.
HOW DO YOU THINK THE FED'S
DEFINITION OF DATA DEPENDENT HAS
EVOLVED?
NARAYANA KOCHERLAKOTA: GREAT
QUESTION.
I THINK THAT DATA DEPENDENCE
THAT WAS SUPPOSED TO CONVEY THAT
EVERY MEETING WAS LIFE.
-- LIVE.
THEY WANTED TO GET BACK TO A
WORLD WHERE THEY WERE NOT
TELLING MARKETS WAY AHEAD OF
TIME WHERE THE INTEREST RATES
WOULD BECOME A SAID THEY WOULD
NOT SAY A YEAR AHEAD WHERE THEY
WOULD BE.
INSTEAD, THEY ARE TRYING TO TELL
THE MARKETS TO WATCH DATA.
I THINK THE PROBLEM HAS BECOME
THE FED IS NOT SAYING WHAT DATA
THEY ARE WATCHING IN TERMS OF
MAKING A DECISION.
THERE IS A LONG LIST OF
INDICATORS IN THE STATEMENT, A
CATCH ALL OF ALMOST EVERYTHING
YOU COULD THINK ABOUT AS BEING
RELEVANT.
AND I THINK THE FED WOULD BE
BETTER SERVED BY ISOLATING 2-3
KEY DRIVERS.
I AM THINKING ABOUT INFLATION,
PRESSURE, THE LABOR MARKET
.ITUATION, AND DOWNSIDE RISKS
THOSE ARE PLAYING MORE OF A ROLE
RIGHT NOW THAN THEY
TRADITIONALLY DO, BECAUSE OF HOW
SCARCE THE TOOLKIT IS.
THE DOWNWARD SHOCK HITS THE
ECONOMY.
AND THERE IS NOT A LOT OF ROOM
TO MANEUVER TO OFFSET THE SHOCK.
YOU HAVE TO KEEP THE ECONOMY AS
HEALTHY AS POSSIBLE TO WARD OFF
SHOCK.
MATT: I WONDER WHAT YOU THINK
ABOUT THE TARGETS.
I REMEMBER WHEN INFLATION
TARGETS, GIVING IN AN INFLATION
TARGET WOULD HAVE BEEN
UNTHINKABLE, NOW MOST CENTRAL
BANKS ARE.
WE WERE TALKING TO LINCOLN
HARRIS TODAY AND HE SAID FED
OFFICIALS OR CENTRAL BANKS NEED
TO RAISE IN THE INFLATION
TARGETS, BUT THEY DO NOT WANT TO
DO THAT.
ONE POSSIBLE SOLUTION WOULD BE
TO SAY OK, WE CAN OVERSHOOT THE
INFLATION TARGET AND NOT WORRY
THE MARKET THAT THEY WILL PUMP
THE BRAKES RIGHT AWAY.
NARAYANA KOCHERLAKOTA: THESE ARE
GOOD CONSIDERATIONS TO PUT ON
THE TABLE.
SO, IF YOU GO BACK TO THE
HISTORY OF HOW WE GOT TO 2% AS A
TARGET.
WAS ON THEN
GOVERNOR'S BACK IN THE 1990'S
AND WAS MAKING THE CASE FOR 2%.
I THINK WE LEARNED SINCE AND
THEN, -- WHICHND
IS WHY YOU WANT A TARGET ABOVE
0% IN THE FIRST PLACE, IT IS
MORE OF A PROBLEM THAN WE MIGHT
HAVE AND DISSIPATED SAYING THEN
IN 1995.
SO THAT IS A REASON THREE THINK
THE TARGET.
-- RE-THINK THE TARGET.
THE FED SHOULD REALLY THINK
ABOUT THE TARGET OR WHATEVER THE
GOALS ARE FROM MONETARY POLICY
AS A COLLECTIVE DECISION, NOT
JUST FOR THE COMMITTEE, BUT
REALLY FOR CONGRESS TO WEIGH IN
ON AS WELL.
AND THEN YOU GET MORE BUYING ON
THE GOALS AND GET HELP FROM
CONGRESS.
SCARLET: THE FORMER MINNEAPOLIS
FED PRESIDENT, NARAYANA
KOCHERLAKOTA, YOU ARE STAYING
WITH US.
THIS IS BLOOMBERG.
♪
♪
WITH THE FORMER
PRESIDENT OF THE MINNEAPOLIS
FED, NARAYANA KOCHERLAKOTA.
VIEWROTE IN YOUR BLOOMBERG
RELEASINGOU SAID, "
RATE CHANGES EVERY THREE MONTHS
DOES NOT HELP IN THIS REGARD.
ADMIT --."LD
YOU COULD ARGUE SHE HAS DONE
THAT.
THIS IS WHAT SHE SAID IN A 2014
NEWS CONFERENCE.
>> I THINK ONE SHOULD NOT LOOK
TO THE DOT PLOT AS IN THE
PRIMARY WAY IN WHICH THE
OR ISTEE WANTS TO
SPEAKING ABOUT POLICY TO THE
PUBLIC AT LARGE.
THE STATEMENT IS A DEVICE THAT
THE COMMITTEE AS A POLICYMAKING
GROUP USES TO EXPRESS ITS
OPINIONS.
AND WE HAVE EXPRESSED A NUMBER
OF OPINIONS ABOUT THE LIKELY
PATH OF RATES.
WHAT YOUHAT SHE SAID,
WOULD LIKE HER TO REITERATE?
DOES SHE NEED TO GO FURTHER?
WHAT IS THE FAILURE ON MESSAGING
REGARDING THE DOTS?
NARAYANA KOCHERLAKOTA: WHAT SHE
SAID, I CERTAINLY ASSOCIATE
MYSELF WITH AND ABOUT THOSE WERE
STRONG WORDS.
BUT LIKE EVERY MESSAGE, IT IS
SOMETHING THAT BEARS REPEATING
AND CONTINUAL REITERATION, I
THINK.
ONE OF THE CHALLENGES, I KNOW
THIS FROM MY OWN EXPERIENCE, IS
THAT PARTICIPANTS OFTEN ASK THE
QUESTION, WILL YOU RAISE RATES
IN SEPTEMBER?
AND SO THEN YOU BECOME BOXED
INTO COMMUNICATING THROUGH THAT
FRAMING.
AND THE DOT PLOTS DO NOT HELP IN
THAT REGARD.
BUT I THINK WHATEVER SHE CAN SAY
TO GET AWAY FROM A
TIME-DEPENDENT FRAMING OF POLICY
AND GET THE COMMITTEE BACK TO
TALKING ABOUT DRIVERS FOR
DECISION-MAKING, I THINK THAT
WOULD BE VALUABLE.
MATT: QUICKLY, THERE WILL BE A
ABOUT THEJACKSON HOLE
RATE PRODUCTIVITY.
LET'S REVIEW THAT.
NARAYANA KOCHERLAKOTA:
[LAUGHTER]
I COULD TEACH A COURSE ON THAT
QUESTION.
JOE: I DO NOT THINK WE REALLY
HAVE THE TIME TO CONTINUE WITH
THAT.
NARAYANA KOCHERLAKOTA, SORRY FOR
THE -- SORRY FOR JUST THROWING
THAT OUT THERE.
NARAYANA KOCHERLAKOTA: A BIG
QUESTION.
JOE: WE WILL HAVE MUCH MORE
COVERAGE FROM THE ECONOMIC
SYMPOSIUM TOMORROW, BREAKING
DOWN JANET YELLEN'S MUCH
ANTICIPATED SPEECH.
SCARLET: COMING UP, SOME OF THE
BIGGEST VOICES ON BLOOMBERG.
MATT: WE WILL BE ASKING NARAYANA
KOCHERLAKOTA THE BIG QUESTIONS
ON THE OTHER SIDE OF THE BREAK.
THIS IS BLOOMBERG.
♪
CREWSIN REALLY, RESCUE
ARE USING THEIR BAREHANDS IN
SOME CASES TO SEARCH FOR
SURVIVORS FROM WEDNESDAY'S
KILLER EARTHQUAKE.
AT LEAST 250 PEOPLE DIED,
HUNDREDS MORE WERE INJURED.
THERE WERE MORE AFTERSHOCKS
TODAY.
THE QUAKE FLATTENED THREE
CENTRAL TOWNS IN ITALY.
MANY OF THE BUILDINGS IN THE
REGION WERE BUILT HUNDREDS OF
YEARS AGO AND WERE RETROFITTED
TO WITHSTAND EARTHQUAKES.
HASMBIA'S PRESIDENT
DECLARED A CEASE-FIRE AGAINST
THE REBEL MOVEMENT STARTING NEXT
WEEK.
THIS COMES AFTER THE COUNTRY
REACHED AN AGREEMENT WITH
DECADESREBELS TO END A
LONG WAR THAT HAS KILLED
HUNDREDS OF THOUSANDS.
THE REBELS WILL CONVERT IT INTO
A LEGAL, POLITICAL PARTY.
IT WILL BEGIN TO SEATS IN BOTH
HOUSES OF THE COLOMBIAN CONGRESS
FOR A TIME.
APPROVALLL
REJECT THE DEAL.
VLADIMIR COULDN'T TODAY ORDERED
SNAP MILITARY DRILLS ON LAND AND
SEA.
THE EXERCISES WILL LAST UNTIL
THE END OF THE MONTH AND INVOLVE
A VARIETY OF SOLDIERS.
THE DRILLS, WEEK AFTER PRESIDENT
PUTIN CRITICIZED UKRAINE FOR
ALLEGEDLY CARRYING OUT ACTS OF
SABOTAGE IN RUSSIA ANNEXED
CRIMEA.
PRESIDENT OBAMA HAS GONE WHERE
NO U.S. PRESIDENT HAS BEFORE,
INTO VIRTUAL REALITY.
HE IS NARRATING A 360 DEGREE
REPRESENTATION OF YOSEMITE
NATIONAL PARK.
TEAMEDIONAL GEOGRAPHIC
UP WITH OCULUS STUDIOS AND VR
SPECIALISTS TO PRODUCE THE FREE
VIDEO.
IT'S OUT TODAY TO MARK THE
CENTENNIAL OF THE NATIONAL PARK
SERVICE.
GLOBAL NEWS, 24 HOURS A DAY,
POWERED BY OVER 2600 JOURNALISTS
AND ANALYSTS IN MORE THAN 120
COUNTRIES.
THIS IS BLOOMBERG.
JOE?
JOE: WE ARE STILL WITH BLOOMBERG
VIEW COLUMNIST AND THE FORMER
PRESIDENT OF THE MARIANAS -- HE
JOINS US FROM ROCHESTER, NEW
YORK.
IT IS NOW TIME TO THINK ABOUT
THE BIG QUESTIONS.
LIKE TOR, I ALWAYS
ASK WITH A NEUTRAL REAL RATE IS
TO PLUG INTO MY MODEL.
PEOPLE ARE SAYING THE
EQUILIBRIUM RATE IS COMING DOWN,
LOWER THAN WE MAY HAVE THOUGHT.
DO YOU AGREE, AND WHERE DO YOU
THINK IT IS?
>> YEAH.
I WANT TO ANSWER THE SECOND
QUESTION ABOUT WHERE I THINK IT
IS.
I'M NOT A HUGE FAN OF THE RULE
IN GENERAL, AND I THINK IT'S NOT
THE BEST WAY TO FREE MONETARY
POLICY.
BUT I WILL A YOUR QUESTION ABOUT
THE NEUTRAL RATE AND THE FORCES
ON IT
.
YOU SEE A SLIGHT DOWNWARD TREND
IN THE NEUTRAL RATE, FROM THE
1980'S INTO THE GREAT RECESSION
2007, YOUUT SINCE
HAVE SEEN A VERY SHARP DECLINE.
THE RIGHT WAY TO GAUGE IT, I
LIKE TO USE MARKET EVIDENCE.
WHERE MARKETS SINK RATE INTEREST
RATES WILL BE, 20 OR 30 YEARS
THAN WHAT THEYER
THOUGHT THEY WERE GOING TO BE IN
2007, BUT 150 BASIS POINTS
LOWER.
THAT CREATES A LOT OF CHANCES
FOR MONETARY POLICY.
IF YOU KEEP THE SAME INFLATION
TARGET, YOUR LONG RUN, NOVEL
INTEREST RATES, THE FED FUNDS
,ATE, IS MORE LIKELY TO BE LOW
AND YOU ARE MORE LIKELY TO RUN
INTO ZERO LOWER BOUND WHEN
SHOCKS HIT.
THAT FALL IN THE NEUTRAL REAL
RATE, I'D SAY THAT YOU SEE IN
MARKET DATA EVIDENCE IS ABOUT IT
HAS FALLEN 150 BASIS POINTS, AND
THAT WILL CREATE CHALLENGES TO
MONETARY POLICY MAKERS IF THE
GOALS REMAIN THE SAME.
JOE: PROFESSOR, IF YOU DON'T
LIKE THE TAILER RULE, DO
YOU HAVE ANOTHER?
>> [LAUGHTER]
NO, I THINK THE BETTER WAY TO
FRAME IT IS OUTLOOK DEPENDENT.
YOU HAVE YOUR OUTLOOK FOR YOUR
MANDATE VARIABLES, INFLATION AND
EMPLOYMENT.
EMPLOYMENT IS HARDER TO MEASURE,
THERE ARE A FEW MORE
CHALLENGES IN TERMS OF EXACTLY
HOW YOU MEASURE WHERE WE ARE IN
TERMS OF HOW WE ARE DOING.
BUT THEN, YOU ARE TRYING TO GET
INTEREST RATES SET SO YOU CAN
GET BACK TO THE INFLATION GOAL
OF 2% AS RAPIDLY AS POSSIBLE AND
GET BACK TO MAXIMUM EMPLOYMENT
AS RAPIDLY AS POSSIBLE.
BY THAT, I MEAN WITHIN THE EURO
TO.
-- A YEAR OR TWO.
JOE: YOU TALK ABOUT USING MARKET
MEASURES TO DERIVE SOME SORT OF
ANTICIPATION OF INFLATION.
CRITICS WOULD SAY THAT THE FED
ITSELF IS INFLUENCING THE MARKET
MEASURES WITH THE FACT THAT IT'S
2016 AND THE FED HAS BEEN SO
SLOW TO RAISE RATES, IS ITSELF
SIGNAL AND THERE'S A FEEDBACK
LOOP.
THEY ARE ULTIMATELY LOOKING AT
SOMETHING INFLUENCED BY THE
FED ITSELF.
ARE YOU CONFIDENT THAT THEY ARE
INDEPENDENT ENOUGH THAT THE FED
SHOULD BE LOOKING AT THEM?
>> YEAH, I REMAIN VERY CONFIDENT
IN THAT.
THE FEEDBACK LOOP YOU ARE
POINTING TO IS ONE OF
THEORETICAL INTEREST, AND IT IS
CERTAINLY ONE THAT GETS A LOT OF
EXCITEMENT AND ATTENTION IN
ACADEMIC CIRCLES.
BUT IT'S NOT SOMETHING THAT
POLICYMAKERS IN THE U.S. HAVE TO
BE CONCERNED ABOUT.
BUT THE SLIDE WE HAVE SEEN IN
LONGER-TERM MARKET BASE
MEASURES OVER THE PAST THREE
YEARS, ITS ASSOCIATED WITH THE
FACT THAT THE FED HAS BEEN
TIGHTENING MONETARY POLICY.
WHILE INFLATION REMAINS LOW.
STEPS TOTO BE TAKING
SLOW THE RETURN INFLATION WILL
TARGET, AND I THINK THAT HAS
CREATED REASONABLE DOUBTS ABOUT
THE COMMITMENT TO THE 2% FLEXION
TARGET.
SCARLET: BLOOMBERG COLUMNIST,
THANK YOU SO MUCH FOR STAYING
WITH US.
WE WILL HAVE MUCH MORE COVERAGE
FROM JACKSON HOLE TOMORROW.
WE WILL BREAK DOWN THE SPEECH IN
THE MORNING, AND WE HAVE SOME OF
THE BIGGEST VOICES ON BLOOMBERG
TOMORROW AS WELL.
MISS?DID YOU
TURKEY HAS COME OUT MORE STABLE
FOR THE ATTEMPTED COUP.
WHAT'S NEXT FOR THEIR
RELATIONSHIP WITH THE UNITED
STATES AND RUSSIA.
JOE BIDEN WAS IN ON CURRENT
YESTERDAY -- WAS IN ANKARA
YESTERDAY. >> THE UNITED STATES
GOVERNMENT IS COMMITTED TO DO
EVERYTHING WE CAN TO HELP.
YOUR GOVERNMENT, MR. PRIME
MINISTER, TO BRING THOSE TO
WHO ARE RESPONSIBLE
FOR THE COUP ATTEMPT.
MATT: LET'S BRING IN THE
GEOPOLITICAL FUTURES FOUNDER AND
CHAIRMAN, GEORGE FRIEDMAN.
IF YOU ARE A CONSPIRACY
THEORIST, THIS IS REALLY
ENTERTAINING TO WATCH, BECAUSE
IT WOULD APPEAR TO YOU THAT THIS
COUP WAS PLANNED FOR THIS VERY
PURPOSE.
THEY DIDN'T DO A VERY GOOD JOB
IF IT WASN'T AND THEY SURE
ARRESTED A LOT OF PEOPLE
AFTERWARDS.
>> WELL, IT IS PRETTY CLEAR THAT
THERE WAS A COUP, AND LIKE MANY
COUPS, THEY WERE LED BY
INCOMPETENCE.
LATCHED ONTO
THIS BRILLIANTLY TO STABILIZE
POSITION, BUT
SO MUCH THAT HE WILL BE A
RUSSIAN ALLY, BUT THAT HE
BROUGHT THE U.S. BACK INTO IT.
THE ONLY CONSPIRACY WAS THE
GANG COULDN'T SHOOT STRAIGHT.
THE PEOPLE COULDN'T GET IT DONE.
SCARLET: I WANT TO GO BACK TO
THAT IDEA OF THE ALLIANCE
BETWEEN TURKEY AND RUSSIA.
WHAT DID TURKEY GET OUT OF IT,
AND HOW HAS IT PLAYED OFF ITS
ALLIANCE WITH THE U.S.?
>> WILL, WHAT TURKEY GOT --
WELL, WHAT TURKEY GOT WAS
LEVERAGE WITH THE UNITED
STATES.
THEY GOT A NUMBER OF THINGS,
AMONG WHICH IS THIS GUY IN THE
UNITED STATES WHO THE TURKS
ACCUSE OF HAVING STARTED THE
COUP.
REMEMBER THAT JUST BEFORE THIS,
RUSSIA AND TURKEY ALMOST WENT TO
WAR OVER THE TURKISH SHOOTDOWN
OF THE RUSSIAN PLANE.
SUDDENLY THERE WAS A LOVE
AFFAIR, AND SUDDENLY THE UNITED
STATES HAD TO START REORIENTING
ITSELF, BECAUSE IT NEEDED
TURKEY.
AND TURKEY NEEDS THE UNITED
STATES.
RUSSIA IS AN HISTORIC ENEMY OF
TURKEY, IT'S REALLY CLOSE,
REALLY COMPETITIVE.
BUT I THINK THE TURKS MANAGED TO
REARRANGE THE ENTIRE
RELATIONSHIP.
WISEDO YOU THINK THAT IT'S
FOR THE U.S. TO SO CLOSELY ALLY
ITSELF WITH THE ERDOGAN
GOVERNMENT?
DO WE REALLY SHARE VALUE
SYSTEMS, OR DOES IT NOT MATTER?
>> I DON'T KNOW ABOUT VALUE
SYSTEMS, BUT WE CERTAINLY SHARE
AN INTEREST IN MAKING SURE THAT
RUSSIAN ACCESS TO THE
MEDITERRANEAN IS CONTROLLED.
THAT MEANS CONTROLLING THE
-- AND WORKING WITH
TURKEY.
IT DEPENDS WHAT YOU WANT.
IF YOU ONLY WANT TO ALLY WITH
PEOPLE WHO ARE LIKE YOU --
MATT: WHAT ABOUT ISIS?
WE HAVE SEEN REPORTS, AT LEAST,
THAT IN THE PAST, ERDOGAN'S
GOVERNMENT HAS SUPPORTED ISIS,
ALTHOUGH NOW IT IS GOING AFTER
THEM.
BUT DON'T YOU WANT AN ALLY THAT
DOESN'T SUPPORT TERRORISTS JUST
BECAUSE HE HATES HIS NEIGHBOR?
>> STALIN ONCE SUPPORTED
HITLER'S, BUT HE BECAME OUR
ALLY.
LOOK, YOU PLAY THE HAND YOU'RE
DEALT TODAY.
WHATEVER TURKEY WAS DOING IN THE
PAST, AND IT REALLY IS NOT
NEARLY AS CLEAR AS THE MEDIA
MADE IT OUT TO BE, WHATEVER IT
WAS DOING IN THE PAST, RIGHT NOW
THE UNITED STATES POSITION IN
SYRIA IS EXTREMELY WEAK BECAUSE
OF THE RUSSIANS AND BECAUSE THEY
HAVEN'T DONE A GOOD JOB OF
BUILDING ALLIES ON OUR SIDE.
THE TURKS COMING INTO SYRIA
HELPS THE UNITED STATES.
ANY HELP THEY CAN GIVE US
AGAINST ISIS HELPS THE UNITED
STATES.
IT BLOCKS THE RUSSIANS, TO SOME
EXTENT.
ISIS IS ONE OF THE ISSUES.
RUSSIA IS ANOTHER ISSUE.
THE ASSAD.REGIME IS A THIRD
ISSUE THIS IS NOT
ASSAD REGIME IS ANOTHER
ISSUE.
SCARLET: A MULTIDIMENSIONAL
CHESS GAME.
TALK TO US ABOUT TURKEY'S
INFLUENCE IN THE MIDDLE EAST.
IT'S CERTAINLY ON THE ASCENDANT,
BUT TALK ABOUT HIS RELATIONSHIP
WITH ISRAEL VERSUS SAUDI ARABIA
VERSUS THE OTHER BIG PLAYERS.
>> WELL, IN THE MIDDLE OF ALL
THIS, TURKEY REOPENED RELATIONS
OF THE ISRAELIS AND HAS BEEN
COOPERATING EXTENSIVELY.
IT IS THE LEADING SUNNI POWER IN
THE AREA.
ASIDE FROM INDONESIA, IT HAS THE
LARGEST GDP OF ANY MUSLIM
COUNTRY IN THE WORLD.
A SUBSTANTIAL ARMY, NOT AS GOOD
AS IT WAS A FEW WEEKS AGO, BUT
SUBSTANTIAL.
IF THERE IS GOING TO BE
STABILIZATION IN THE MIDDLE
EAST, IT IS NOT GOING TO BE DONE
BY THE UNITED STATES.
THE UNITED STATES WILL NOT GO TO
WAR AGAINST A USEFUL IN
LARGE-SCALE.
IF, THERE IS USE THE TURKS WILL
PLAY --
GOING TONG RUN, IT'S
RETURN TO THE SITUATION IT WAS
IN 100 YEARS AGO, WHERE IT WAS
THE DOMINANT POWER IN THE MIDDLE
EAST.
JOE: ALL RIGHT.
GEORGE FRIEDMAN, THANK YOU VERY
MUCH FOR JOINING US.
SCARLET: COMING UP, HILLARY
CLINTON SAYS DONALD TRUMP HAS
BUILT HIS CAMPAIGN ON PREJUDICE
AND PARANOIA.
HER COMMENTS TO, NEXT -- HER
COMMENTS, NEXT.
THIS IS BLOOMBERG.
♪
SCARLET: I'M SCARLET FU.
IT'S TIME FOR THE BLOOMBERG
BUSINESS FLASH.
RETAILER,VIDEOGAME
POSTED SECOND-QUARTER SALES THAT
MISSED ANALYST ESTIMATES IN A
TOUGH QUARTER WHEN THERE ARE
FEWER NEW TITLES.
SALES DECLINED MORE THAN 7%.
SHARES ARE DOWN IN AFTER-HOURS
TRADING.
THE EUROPEAN UNION'S CAMPAIGN TO
CRACK DOWN ON TAX AVOIDANCE HAS
DRAWN UNUSUALLY PUBLIC CRITICISM
FROM THE U.S.
MORE SOUTH AMERICAN COMPANIES
ARE BEING UNFAIRLY TARGETED.
THE EU EXECUTIVE COMMISSION
RESPONDED WITH A SHARP DENIAL,
INSISTING IT IS BEING FAIR AS IT
GOES AFTER CORPORATE TAX
DODGING.
AND FACEBOOK IS LIKE THE
GROUNDWORK FOR WHATSAPP TO START
MAKING MONEY.
IT IS USING PRIVACY RULES SO IT
CAN BE USED FOR FACEBOOK
ADVERTISING AND ALLOWING
BUSINESSES TO MESSAGE ITS ONE
MILLION USERS.
IT IS THE FIRST STEP TOWARD
GENERATING PROFIT FROM THE
PLATFORM SINCE THEY PURCHASED
THE APP IN 2014.
THAT IS YOUR BLOOMBERG BUSINESS
FLASH.
JOE: WHAT YOU MISS?
HILLARY CLINTON TO DONALD
TRUMP'S BIG ACCUSATION,
LAUNCHING A WRATH OF CHARGES
AGAINST HER RIVAL.
>> FROM THE START, DONALD TRUMP
HAS BUILT HIS CAMPAIGN ON
PREJUDICE AND PARANOIA.
HE IS TAKING A GROUPS
MAINSTREAM, AND HELPING A
RADICAL FRINGE TAKE OVER THE
REPUBLICAN PARTY.
HIS DISREGARD FOR THE VALUES
THAT MAKE OUR COUNTRY GREAT IS
PROFOUNDLY DANGEROUS.
JOE: JOINING US FOR MORE IS
BLOOMBERG'S POLITICS
CORRESPONDENT, MARGARET TALIBAN.
-- MARGARET CALIB.
HILLARY CLINTON'S JOB DOESN'T
LOOK TERRIBLY DIFFICULT, BUT
DONALD TRUMP'S DOES.
WHY IS HE CALLING HER A BIG IT?
-- A BIGOT?
>> PART OF IT>> IS TO GET OFF
THE DEFENSE AND REACH OUT MAYBE
TO AFRICAN-AMERICAN VOTERS, BUT
LIKELY TO WHITE AMERICAN VOTERS
WHO FEEL VERY UNEASY ABOUT
QUESTIONS ABOUT WHETHER OR NOT
HIS CAMPAIGN TACTICS HAVE RACIST
OVERTONES, AND WHAT HE HAS BEEN
ATTEMPTING TO DO IN THE LAST
COUPLE DAYS IS TURN THINGS ON
HER AND SAY, YOU KNOW, SHE'S
EITHER NOT PAYING ENOUGH
ATTENTION TO AFRICAN-AMERICANS
OR TREATING AFRICAN-AMERICANS AS
VICTIMS.
HE IS TRYING TO TURN THE
NARRATIVE AROUND.
WHAT WE SAW TODAY WAS VERY
JUSTFUL NOT EVEN DISSENT,
HER GOING DIRECTLY AFTER DONALD
TRUMP ON WHAT SHE SEES AS A
SLEW, ON MANY LEVELS, OF
QUESTIONABLE AFFILIATIONS,
BEHAVIORS,, STATEMENTS POLICIES.
JOE: THOSE OF US WHO ARE ONLINE
ALL THE TIME WHO HAVE SEEN WHAT
SHE IS TALKING ABOUT FOR A LONG
TIME, THE SO-CALLED ALT
RIGHT, ALL THE FRINGE ELEMENTS.
IS IT SAFE TO ASSUME THAT MANY
VOTERS ARE COMPLETELY UNFAMILIAR
WITH WHAT BREITBART.COM IS
LIKE, AND THAT THIS SPEECH IS AN
OPPORTUNITY TO GET THE MEDIA
SHOWING THIS SIDE OF HIS
MOVEMENT TO THE GENERAL PUBLIC?
>> ABSOLUTELY THAT'S RIGHT.
THERE WAS A TURNING POINT ABOUT
A WEEK AGO WHEN TRUMP ANNOUNCED
THE HIGHER OF STEPHEN BANNON,
WHEN THE CLINTON CAMPAIGN TALKED
ABOUT WHAT THEY NEEDED TO DO TO
ADDRESS IT, HOW TO TAKE
ADVANTAGE OF IT, AND WENT TO DO
IT.
AND YOU CAN ALWAYS SEE LABOR DAY
AS THE POINT IN THE ELECTION
CYCLE WHEN VOTERS TURN AWAY FROM
VACATION, GET BACK HOME TO THE
REALITY OF SENDING THEIR KIDS
BACK TO SCHOOL, AND INEVITABLY
FOCUSING ON THE ELECTION.
THAT HAS ALWAYS BEEN A TURNING
POINT WHERE YOU WOULD EXPECT TO
SEE BILL CLINTON AND -- BOTH
CLINTON AND TRUMP RATCHETING
THEIR CAMPAIGN.
BUT IT WAS STEPHEN BANNON, THE
REACTION FROM THESE GROUPS, IT
WAS JUST THERE ON THE TABLE, AND
SURE ENOUGH, WITH ALL THIS FOCUS
ON THE CLINTON FOUNDATION, I'M
SURE THE CLINTON CAMPAIGN WAS
HAPPY TO HAVE A REASON TO TURN
THE NARRATIVE, BUT I DO BELIEVE
IT WAS THE TIMING OF THE
HIRE THAT REALLY EXPEDITED
THE CONVERSATION.
SCARLET: AGAINST THE BIGGER
BACKDROP, YOU HAVE PULLED
SHOWING MINORITY VOTERS
OVERWHELMINGLY SUPPORTING
HILLARY CLINTON.
HOW CAN TRUMP COMPETE FOR THEIR
SUPPORT, OR IS EVEN TRYING?
>> CONVENTIONAL WISDOM FOR QUITE
A WHILE HAS HELD THAT OHIO AND
PENNSYLVANIA, FLORIDA AND NORTH
CAROLINA TO SOME DEGREE, WILL BE
THE PIVOTAL STATES IN THE
SELECTION.
WHAT YOU HAVE IS SOME POCKETS OF
VOTERS THAT HILLARY CLINTON
WOULD WANT TO TURN OUT,
PARTICULARLY JACKSONVILLE,
PHILADELPHIA.
BUT FOR TRUMP, THE ISSUE IS
VOTERS,O MAXIMIZE WHITE
INCLUDING CENTRIST WHITE OR
RIGHT-LEANING VOTERS WHO WILL
BACK HIM.
IS THAT CONCERN HE IS TRYING TO
ADDRESS IN HIS REMARKS,
OSTENSIBLY TO AFRICAN-AMERICANS,
TO BRING SOME REASSURANCE TO
WHITE AMERICAN VOTERS WHO ARE
NOT ENTIRELY COMFORTABLE WITH
RISE TIES TO THE ALT
GHT.
MATT: THINK YOU VERY MUCH.
SCARLET: STILL AHEAD, WE WILL
HEAR FROM MARK MOBIUS ON
HELICOPTER MONEY AND HIS OUTLOOK
ON JAPAN.
THIS IS BLOOMBERG.
♪
SCARLET: I'M SCARLET FU.
LEGENDARY INVESTOR MARK MOBIUS
SAYS HELICOPTER MONEY WILL BE
THE NEXT BIG EXPERIMENT, AND IT
COULD HAPPEN NEXT MONTH.
HE SPOKE EXCLUSIVELY WITH
BLOOMBERG.
>> WE WILL ENGAGE IN HELICOPTER
MONEY WITH GREAT CARE AND GREAT
RELUCTANCE, AND OF COURSE IF
THEY DO IT TO CAREFULLY, IT WILL
HAVE SIDE EFFECTS.
SCARLET: JOINING US FOR MORE,
BETTY LIU.
A LOT OF PEOPLE SAY THAT THE
PUSH FOR HELICOPTER MONEY WILL
BE IF THE YEN CROSSES A CERTAIN
LEVEL.
BETTY: YOU HAVE THE NAIL ON THE
HEAD.
WHAT MARK MOBIUS SAID THAT WAS
SO INTERESTING, HE'S SAYING,
THEY ARE GOING TO DO IT, BUT
IT'S LIKELY NOT GOING TO HAVE
THE DESIRED EFFECT, SO WHY DO IT
AT ALL?
MATT: TYPICAL BANK OF JAPAN
POLICY, IS IN THAT HOW THEY
DO IT?
THEY DOESN'T REALLY BRING IT
WITH THEIR FISCAL POLICY.
SCARLET: THAT REMINDS ME OF
ANOTHER CENTRAL-BANK.
BUT WHY DID I HAVE TO DO IT?
LIKE YOU SAID, BECAUSE THE YEN
CONTINUES TO STRENGTHEN, AND
WHAT MARK MOBIUS WAS SAYING WAS
THAT ¥90S AND CROSSES
PER DOLLAR LEVEL, THAT WILL
LIKELY BE --
WASN'T 100 GOING TO BE THE
BIG ONE, AND THERE WERE HEDGES
AT 100?
IS IT NOW GETTING RATCHETED DOWN
--
BETTY: AS IT GRADUALLY MOVES --
AT SOME POINT, WHAT'S
INTERESTING, WASN'T 100 GOING TE
BIG ONE, THIS PHRASE
HELICOPTER MONEY IS A PHRASE
THAT WON'T GO AWAY.
WASBOJ GOVERNOR KURODA
ASKED THIS BY THE BBC -- YOU
GUYS ARE EVER THIS?
LET'S JUST REMIND OUR VIEWERS
WHAT HE SAID ABOUT THIS.
- A POLICY
I DON'T THINK AT THIS STAGE WE
SHOULD ABANDON THIS
INSTITUTIONAL SETTING.
THERE'S NO POSSIBILITY FOR
HELICOPTER MONEY.
BETTY: NO POSSIBILITY.
BUT HE ALSO SAID "AT THIS
STAGE."
IT'S MIXED MESSAGING.
MATT: YOU CAN'T TAKE AWAY THE
POSSIBILITY COMPLETELY, RIGHT?
JOE: THERE IS STILL THE ISSUE OF
THE FACT THAT HELICOPTER MONEY
HAS TO INVOLVE COORDINATION
BETWEEN THE BANK OF JAPAN AND
THE FISCAL AUTHORITY, WHERE YOU
CLEARLY EXPRESS RESERVATIONS
ABOUT THAT COORDINATION
REGARDLESS OF THE CONDITIONS.
BETTY: RIGHT.
THERE ARE QUESTIONS ABOUT HOW
MUCH THEY ARE ON THE SAME PAGE
AND WHETHER THERE NEEDS TO BE
MORE FISCAL REFORM BEFORE
IMPLEMENTING ANY TYPE OF FURTHER
EASING.
ABSOLUTELY.
WE WILL SEE.
MATT: YOU CAN CATCH BETTY LIU
WITH THE YVONNE MAN AT 7:00 NEW
YORK TIME FOR "DAYBREAK ASIA."
SCARLET: COMING UP, WHAT YOU
NEED TO KNOW FOR TOMORROW'S
TRADING DAY.
BLOOMBERG.
THIS IS BLOOMBERG.
♪
SCARLET: DON'T MISS THIS --
JAPAN IN TOKYO CPI COMING OUT
TONIGHT AT 7:30 P.M.
WE WERE TALKING EARLIER ABOUT
HELICOPTER MONEY; DEFLATION HAS
TAKEN HOLD AND THERE IS A
PROJECTED DECLINE, AND TOKYO
CPI.
IT'S ONLY WHEN YOU BLOCK OUT
ENERGY AND FOOD THAT USE THE AN
INCREASE IN PRICES FOR JULY.
MATT: AND DON'T MISS THIS.
U.K. GDP COMES OUT TOMORROW AT
4:30 IN THE MORNING.
OBVIOUSLY, BUT I
THINK IT IS WORTH GETTING OUT,
BECAUSE YOU ARE GOING TO GET A
READ ON SOME ECONOMICS THAT CAME
IN AFTER THE BREXIT VOTE.
JOE: AND OF COURSE, I WILL BE
LOOKING, AS WE ALL WILL BE, AT
JANET YELLEN'S SPEECH TOMORROW
IN JACKSON HOLE.
THE TITLE OF THE SPEECH IS "THE
FEDERAL RESERVE'S MONETARY
POLICY TOOLKIT."
SHOULD BE FASCINATING.
SCARLET: THANKS FOR WATCHING.
JOE: WE WILL SEE YOU BACK HERE
TOMORROW.
MATT: HAVE A GREAT EVENING.
THIS IS BLOOMBERG..
♪
RESPECTTH ALL DUE
TO DONALD TRUMP, WE HEARD ABOUT
YOUR MINNESOTA BALLOT TROUBLES.
YOU BETCHA.
WE HAVE A GOOD SHOW.
AFTER A WEEK BEING HAMMERED OVER
HER FAMILY'S FOUNDATION, HILLARY
WAS CALLING BS ON DONALD TRUMPS
RHETORIC TO REACH OUT TO VOTERS.
THIS AFTERNOON IN RENO, SHE
DEVOTED HER SPEECH TO REMINDING
THE WORLD OF TRUMP'S REMARKS AND
TWEEDS, DUBBING HIM A HERO OF
THE ALT RIGHT, FUEL BY WHITE
NATIONALISM.
>> FROM THE START, DONALD TRUMP
HAS BUILT HIS CAMPAIGN ON
PREJUDICE AND PARANOIA.
HE IS TAKING HATE GROUPS
MAINSTREAM, AND HELPING A
RADICAL FRINGE TAKE OVER THE
REPUBLICAN PARTY.
LET'S NOT FORGET THAT TRUMP
FIRST GAINED POLITICAL
PROMINENCE LEADING THE CHARGE
FOR THE SO-CALLED BIRTHERS.
HE PROMOTED THE RACIST LIE THAT
PRESIDENT OBAMA IS NOT REALLY AN
AMERICAN CITIZEN, BUT A DE FACTO
MERGER BETWEEN BREITBART AND THE
TRUMP CAMPAIGN REPRESENTS A
LANDMARK ACHIEVEMENT FOR THIS
GROUP.
THAT HASELEMENT
EFFECTIVELY TAKEN OVER THE
REPUBLICAN PARTY.
AND THIS IS PART OF A BROADER
STORY.
THE RISING TIDE OF HARD-LINE,
RIGHT-WING NATIONALISM AROUND
THE WORLD
.
NO ONE SHOULD HAVE ANY ILLUSIONS
ABOUT WHAT'S REALLY GOING ON
HERE.
THE NAMES MAY HAVE CHANGED,
RACISTS NOW CALL THEMSELVES
WHITE SUPREMACISTS
NOW CALL THEMSELVES WHITE
NATIONALISTS, THE PARANOID
FRINGE NOW CALLS ITSELF ALT
RIGHT, BUT THE HATE BURNS JUST
AS BRIGHT.
THIS IS THE MOMENT OF
RECKONING FOR EVERY REPUBLICAN
DISMAYED AT THE PARTY OF LINCOLN
BECOMING THE PARTY OF TRUMP.
BEFORE THAT THE CLINTON
CAMPAIGN RELEASED THIS
INCENDIARY VIDEO WHICH FEATURES
A KU KLUX KLAN WIZARD PRAISING
REPUBLICAN NOMINEE.
>> THE REASON A LOT OF CLAN
MEMBERS LIKE DONALD TRUMP IS
BECAUSE A LOT OF WHAT HE
BELIEVES, WE BELIEVE.
DONALD TRUMP WILL BE BEST FOR
THE JOB.
>> I AM A FARMER AND WHITE
NATIONALIST.
SUPPORT DONALD TRUMP.
>> SENDING OUT ALL THE ILLEGALS,
BUILDING A WALL, THE MORATORIUM
ON ISLAMIC IMMIGRATION, THAT IS
APPEALING TO A LOT OF
ORDINARY PEOPLE.
JOHN: HE HELD OF MINORITY TABLE
WHEN THAT VIDEO DROPPED.
HE LATER RESPONDED AT A RALLY.
>> HILLARY CLINTON IS GOING TO
TRY AND ACCUSE THIS CAMPAIGN AND
MILLIONS OFAND THE
DECENT AMERICANS WHO SUPPORT
THIS CAMPAIGN, YOUR CAMPAIGN, OF
BEING RACISTS, WHICH WE ARE NOT.
TO HILLARY CLINTON AND HER
DONORS AND ADVISORS, PUSHING HER
TO SPREAD SMEARS AND HER LIES
ABOUT DECENT PEOPLE, SHAME ON
YOU.
JOHN: THE TRUMP CAMPAIGN ALSO
PUT OUT A STATEMENT SAYING, "
HILLARY CLINTON'S ATTEMPTS TO
DELETE THE SINGLE WORST WEEK OF
HER POLITICAL CAREER ISN'T GOING
TO WORK."
ALEX, WHO IS WINNING THIS FIGHT
TODAY?
ALEX: I GOT TO GIVE IT TO
CLINTON, JUST BY VIRTUE OF THE
FACT THAT I THOUGHT THAT WAS ONE
OF THE TOUGHEST SPEECHES SHE HAS
EVER GIVEN.
SHE INVOKED WHITE SUPREMACY,
BIGOTRY, AND RACISM, PARANOID
FEVER DREAMS.
CHARGES OF CORRUPTION AND
CRONYISM IN THE CLINTON
SAYINGION ARE TOUGH, BUT
THAT DONALD TRUMP IS DANGEROUSLY
OUTSIDE THE MAINSTREAM OF
NORMALCY, SET ASIDE AMERICAN
POLITICS?
THOSE ARE TOUGH CHARGES.
IN COMBINATION WITH AN AD THAT
FEATURE SOMEONE IN KLAN GUARD,
THAT IS AS TOUGH AS YOU CAN GET.
JOHN: IT IS NOT SOMETHING WE
HAVE SEEN IN OUR POLITICS IN OUR
LIFETIME, JUST LIKE THE TRUMP
CAMPAIGN IS NOT SOMETHING WE
HAVE SEEN IN OUR LIFETIME.
I DON'T THINK THIS IS THE WORST
POLITICAL WEEK IN HILLARY
CLINTON'S LIFE, ALTHOUGH IT IS
NOT A GOOD WEEK.
GOOD ATE GOTTEN VERY
FLIPPING THE BID, GETTING PEOPLE
TO FOCUS ON TRUMP, BECAUSE HE
GIVES THEM SO MUCH AMMUNITION.
SHE HAS DONE A FEW OF THE
SPEECHES IN THE PAST, IN
CALIFORNIA WHERE SHE WENT AFTER
HIS TEMPERAMENT.
THIS WAS OFF THE CHARTS IN TERMS
OF TOUGHNESS, AND THIS IS THE
KEY THING.
ALL THAT TRUMP SUPPORTERS, THEY
AREN'T RACIST, BUT THE ALL
T RIGHT IS BEHIND DONALD
TRUMP AND THERE ARE PLENTY OF
SUPPORTERS OF HIM WHO ARE.
WHITE NATIONALISTS, OUTRIGHT
RACISTS, XENOPHOBES, THEY ARE
OUT THERE.
THERE IS A LOT OF EVIDENCE TO
WORK WITH, AND WHAT SHE IS
TRYING TO DO IS SAY, TO REGULAR
REPUBLICANS, MORE TRADITIONAL
REPUBLICANS, YOU DON'T WANT TO
BE IN BED WITH THESE PEOPLE.
ALEX: AND THOSE ARE THE PEOPLE
BOTH CAMPAIGNS ARE TRYING TO
SPEAK TO.
NORMAL REPUBLICANS WHO FEEL LIKE
THEY DON'T HAVE A PLACE IN THE
TRUNK CAMPAIGN -- THE TRUMP
CAMPAIGN.
HILLARY CLINTON'S SPEECH TODAY
WAS DIRECTED AT MODERATE
REPUBLICANS.
JOHN: WE TALKED ABOUT THIS
BEFORE -- DONALD TRUMP TALKING
ABOUT COLLEGE-EDUCATED WOMEN,
OSTENSIBLY TO AFRICAN-AMERICANS.
THAT IS OF THAT SPEECH IS ABOUT.
THIS IS GETTING A TON OF
COVERAGE, BUT THE REAL INTENDED
YOU SUBURBANT LET
WHITE WOMEN OF PHILADELPHIA BE
FOOLED.
REMEMBER, NOT JUST WHAT HE HAS
SAID THAT THE PEOPLE HE HAS
SURROUNDED HIMSELF WITH.
ALEX: WHEN PEOPLE SHOW WHO
THEY ARE, BELIEVE THEM.
A NEW NATIONAL POLL CAME OUT
TODAY, SHOWING HILLARY CLINTON
LEADING BY 10 POINTS, 51% TO
41%.
BUT IT WAS ANOTHER SURVEY THAT
REALLY CAUGHT OUR EYE,
SUGGESTING THAT ASPECTS OF
DONALD TRUMP'S INTEGRATION PLAN
ARE OUT OF STEP WITH MANY OF THE
NATION'S VOTERS.
61% SAY THEY OPPOSE BUILDING A
WALL ON THE U.S.-MEXICO BORDER,
WHICH IS MAYBE WHY TRUMP SEEMS
TO BE ABOUT AS CONFUSED AS
EVERYONE ELSE WHEN IT COMES TO
HIS NEW POSTURE ON IMMIGRATION.
IN A FOX NEWS TOWN HALL THAT
AIRED LAST NIGHT, THE REPUBLICAN
NOMINEE PLAYFULLY ASKED THE
AUDIENCE THREE TIMES TO VOTE ON
HOW TO HANDLE THE ESTIMATED 11
MILLION UNDOCUMENTED MEN AND
WOMEN LIVING IN THE UNITED
STATES.
IN WHAT JENNA JOHNSON OF "THE
WASHINGTON POST" DESCRIBED AS
"GAME SHOW STYLE POLLS ON THE
STATE OF HUMAN BEINGS."
SO HAS TRUMP CHANGED HIS
POSITIONS
S?
AS ALWAYS, WE TURN TO KATRINA
PEARSON.
>> HE HASN'T CHANGED HIS
POSITION, HE HAS CHANGED THE
WORDS HE IS SAYING.
ALEX: IN THIS CASE SHE IS
RIGHT,, AT LEAST ABOUT HIS WORD
CHANGE.
HERE'S THE EVOLUTION OF HIS
STANCE ON THE ISSUE OVER THE
PAST FEW MONTHS.
>> YOU HAVE TO GO OUT, AND THEY
WILL COME BACK --
>> COME ON, WE KNOW YOU CAN'T
PICK THEM UP AND SHIP THEM
ACROSS THE BORDER.
IT'S A SILLY ARGUMENT.
>> DWIGHT EISENHOWER.
THEY MOVED 1.5 MILLION PEOPLE
OUT.
WE HAVE NO CHOICE.
>> ARE YOU GOING TO HAVE A
MASSIVE DEPORTATION?
>> WE ARE GOING TO HAVE A
DEPORTATION FORCE, AND WE WILL
DO IT HUMANELY.
>> IF YOU ARE PRESIDENT, WHAT
WILL YOU DO FOR THOSE MEMBERS OF
OUR COUNTRY WHO HAVE BEEN HERE
FOR 25 YEARS UNDOCUMENTED?
>> THEY ARE GOING TO GO, AND WE
ARE GOING TO CREATE A PATH WHERE
WE CAN GET THEM INTO THIS
COUNTRY LEGALLY.
OTHERWISE, WE DON'T HAVE A
COUNTRY.
THEY ARE GOING TO COME BACK --
SOMEONE WHO HAS BEEN IN THE
COUNTRY FOR 20 YEARS, AS A JOB,
OK.
DO WE TAKE HIM AS A FAMILY AND
SEND THEM OUT?
THEY OWE TAXES, THEY HAVE TO PAY
TAXES.
ALEX: THIS IS NOT THE ONLY
POSITION TRUMP TOOK DURING THE
NOMINATION CONTEST THAT NOW
SEEMS TO BE UNTENABLE.
LAST NIGHT ON RACHEL MADDOW,
KELLYANNE CONWAY STRUGGLED TO
RECTIFY HER BOSS'S ORIGINAL
MUSLIM THAN WITH HIS CURRENT
PROPOSAL, AND SHE COULD NOT
SPECIFY EXACTLY WHO TRUMP IS
APOLOGIZING TO WHEN HE EXPRESSED
REGRET LAST WEEK.
HE AND HIS CAMPAIGN SEEM TO BE
FACING TWO UNPALATABLE CHOICES,
EITHER DOUBLE DOWN ON UNPOPULAR
POLICIES OR RISK BEING LABELED
AS FLIP FLOPPER'S.
JOHN, WHICH ONE TO CHOOSE?
JOHN: A LOT OF POLITICIANS TRY
TO HAVE IT BOTH WAYS.
IS A TIME-HONORED TRADITION AND
POLITICS.
THESE ARE EGREGIOUS EFFORTS TO
HAVE IT BOTH WAYS, TO SAY WHAT
KELLYANNE CONWAY SAID, WELL,
LOOK AT BOTH OF THEM.
THEY ARE ALL PART OF A
CONTINUUM.
HE EXPRESSED REGRET IN GENERAL,
SO ANYBODY WHO HAS BEEN OFFENDED
SHOULD TAKE THAT AS AN APOLOGY.
THEN THIS IMMIGRATION THING,
WHICH IS THE FLIP-FLOP TO END
ALL FLIP-FLOPS.
WAR, IT WAS AGAINST THE
MAKES THAT LOOK LIKE
MATCHSTICKS.
I DON'T KNOW WHICH HE BELIEVES.
I HAVE NO IDEA WHAT HE BELIEVES.
HE MAY BELIEVE NOTHING ABOUT IT,
BUT I THINK THAT IS SUCH AN
EGREGIOUS FLIP-FLOP THAT HE WILL
PAY A TERRIBLE PRICE FOR IT.
IT WILL BE ON THE FAR RIGHT IN
THE MIDDLE WHO REMEMBER WHAT HE
SAID.
ALEX: AND KEEP IN MIND, IN THAT
INTERVIEW THAT KELLYANNE CONWAY
BRAVELY DID, BECAUSE IT IS
ALMOST AN IMPOSSIBLE
POSITION, AT ONE POINT, UP POPS
THE TRUMP LETTERHEAD, THE
COMPLETE AND TOTAL BAN ON
MUSLIMS ENTERING THE UNITED
STATES, WRITTEN BY DONALD TRUMP,
RELEASED TO THE NATIONAL PRESS.
THIS IS THE PRICE YOU PAY.
AWAYANNOT ETCH-A-SKETCH
SOMETHING WRITTEN ON YOUR OWN
LETTERHEAD.
JOHN: THROWBACK THURSDAY.
ALEX: THERE IS NO NUANCE.
AND THAT IS THE PROBLEM FOR THE
CAMPAIGN.
JOHN: I THINK THERE IS A CHANCE
-- IF YOU THINK ABOUT HOW TOXIC
A POSITION HE TOOK IS, THE
BETTER THING TO ME, IF YOU HAVE
TO BE LABELED A FLIP FLOPPER, IS
ACTUALLY FLIP-FLOP.
SAY, YOU KNOW WHAT, I WAS WRONG
BEFORE, I HAVE TALKED TO PEOPLE,
I HAVE COME TO A DIFFERENT POINT
OF VIEW.
JUST ADMIT IT.
YOU WILL TAKE A HIT, BUT AT
LEAST HE WILL BE PAINTED AS
SOMEONE TRYING TO DO WHAT IT
SEEMS LIKE, WHICH IS TO PRETEND
LIKE ALL THAT STUFF ON WHICH HIS
CAMPAIGN WAS BUILT NEVER
HAPPENED.
ALEX: RIGHT.
ALSO, THEY MUST HAVE SOME KIND
OF INTERNAL NUMBERS THAT SUGGEST
IF THEY FORSAKE THESE
BASE VOTERS, WHO ARE VERY
EXCITED ABOUT THE WALL INTO THE
BAN, THEY PLUMMET TO A LEVEL
FROM WHICH IT IS UNRECOVERABLE.
JOHN: YES.
AND I THINK THEY ARE BETTING THE
PEOPLE WHO LOVE DONALD TRUMP
WON'T GO ANYWHERE, THAT THEY
WILL STAY AND PUT UP WITH WHAT
HE CAN BACK AWAY
FROM ANYTHING, THAT HE CAN'T
PIVOT AWAY FROM IMMIGRATION.
THEY ARE BETTING THAT AND
CULTURE IS AN OUTLIER -- THAT
ANN COULTER IS AN OUTLIER.
BUT HE IS PUTTING HIMSELF IN A
HORRIBLE PLACE POLITICALLY.
AND WHEN WE COME BACK, THE
CLINTON CAMPAIGN CHIEF
STRATEGIST.
A REAL HONOR TO SEE HIM HERE, IN
SET, AFTER ON THIS
SPONSORS.S FROM OUR
♪
♪
ALEX: FRESH OFF HILLARY
CLINTON'S SCATHING CRITIQUE OF
DONALD TRUMP IN THE ALT RIGHT,
WE ARE JOINED BY DEMOCRATIC
POLLSTER IN SENIOR STRATEGIST
AND CLINTON'S CAMPAIGN, JOEL
BENENSON.
THANK YOU FOR YOUR TIME.
AN IMPORTANT IN
TIME FOR HILLARY CLINTON.
THE DONALD TRUMP CAMPAIGN SEEMS
TO BE SUGGESTING THAT THE SPEECH
TODAY WAS TRYING TO PICK IT AWAY
FROM HER WORST WEEK IN POLITICS.
>> I THINK DONALD TRUMP HAS BEEN
-- THE WHEELS ARE COMING OFF HIS
CAMPAIGN, HE IS ON HIS THIRD
CAMPAIGN MANAGER, CLAIMS HE
HIRES THE BEST PEOPLE IN THE
WORLD.
I THINK WE ARE IN A PHASE NOW
WHERE THE ISSUES HAVE TO BE PUT
FRONT AND CENTER.
HE'S IN TRYING TO MAKE SOME
STATEMENTS.
WHETHER HE HAS BEEN FED THEM BY
ADVISERS, PEOPLE PUTTING THEM IN
HIS TELEPROMPTER, WHO KNOWS.
BUT WE WILL HOLD THEM TO ACCOUNT
ON POSITIONS HE HAS TAKEN THAT
HAVE BEEN DIVISIVE AND DIVIDING,
THAT HAVE BEEN HATEFUL, AND WE
WILL HOLD HIM TO ACCOUNT FOR THE
NEXT 75 DAYS.
JOHN: IS DONALD TRUMP A RACIST?
>> YOU KNOW, WHEN THIS FIRST
CAME UP AND HILLARY CLINTON SAID
I DON'T KNOW, I THINK THAT'S AN
ACCURATE STATEMENT.
BELOW WE DO KNOW IS HE HAS MADE
RACIST COMMENTS.
PAUL RYAN SAID HIS COMMENTS
ABOUT THE JUDGE WITH THE
DEFINITION OF RACISM.
WHEN YOU HAVE BEEN HAULED INTO
COURT BY THE JUSTICE DEPARTMENT
FOR ENGAGING IN HOUSING
DISCRIMINATION, STAMPING THE
LETTER C ON THEIR HOUSING
APPLICATION BECAUSE THEY ARE
AFRICAN-AMERICAN OR LATINO,
THOSE ACTIONS ARE RACIST.
THEY AACISM -- GENERALLY
REN'T ACTIONS.
IF YOU MAKE RACIST STATEMENTS,
IS THAT NOT THE DEFINITION OF
BEING A RACIST?
>> I WILL LET YOU JUDGE THAT.
I DON'T HAVE TO MAKE THAT
JUDGMENT.
WHAT I FEEL COMFORTABLE
SAYING AND DOING IS HOLDING UP
ALL THE HATEFUL STATEMENTS THAT
HE HAS ENGAGED IN, THAT HE HAS
PARTICIPATED IN, AND THE PEOPLE
TRAFFICKING.
HILLARY CLINTON MADE A POINT
TODAY -- HE TOOK A TWEET FROM A
KNOWN WHITE SUPREMACIST, RACIST
GUY, TAKES A GUY WITH A DOZEN
FOLLOWERS AND TWEETED OUT FOR
MILLIONS OF PEOPLE.
IT'S BEHAVIOR THAT FLIES IN THE
FACE OF OUR VALUES AS AMERICANS,
AND AS A COUNTRY.
JOHN: ONE QUICK FOLLOW-UP.
DONALD TRUMP'S FOLLOWERS, IS
VOTERS.
VOTERS.
IS A SUBSTANTIAL AMOUNT OF HIS
SUPPORT FROM OUR A RACIST,S IS
THAT IS YOUR VIEW?
>> THERE ARE A BUNCH OF REASONS
WHY PEOPLE ARE PROBABLY VOTING
FOR DONALD TRUMP.
I WILL NOT TRY AND QUANTIFY
ANYTHING ABOUT HIS SUPPORTERS.
I THINK WE KNOW THAT IN A
PRESIDENTIAL ELECTION, THERE ARE
A LOT OF PEOPLE WHO SAY THEY
DON'T AGREE WITH WHAT HE SAYS
AND THEY ARE VOTING FOR HIM.
BUT I THINK THERE ARE A LOT OF
PEOPLE WHO ARE APPALLED AT MANY
OF THE THINGS HE SAID AND I
THINK WE WILL KEEP SPEAKING TO
THOSE VOTERS.
STUDENTSTHER TEAM'S
ARE SHOUTING "BUILD THAT WALL"
BE THE LEADER
AND DONALD TRUMP HAS PROVEN HE
IS TEMPERAMENTALLY UNFIT TO BE
PRESIDENT OF THE UNITED STATES.
WHAT WE TALKED ABOUT TODAY AND
WHAT HILLARY CLINTON TALKED
ABOUT TODAY, THIS IS PART OF
THAT STORY.
WHEN YOU'RE DIVIDING PEOPLE,
USING THOSE COMMENTS, YOU ARE
NOT FIT TO BE PRESIDENT.
ALEX: WAS THERE ANY TREPIDATION
ABOUT USING THE IMAGE OF THE
CLAN MEMBER IN A CAMPAIGN AD?
>> I THINK IT WAS THE VIDEO THAT
GOT RELEASED TODAY -- A WEB
VIDEO.
YOU KNOW, THE FACT IS THAT WHEN
YOU ALIGN WITH SOME OF THE
PEOPLE HE HAS ALIGNED WITH,
STEPHEN BANNON, BREITBART, WHERE
THEY HAVE CREATED A HOME BASE
FOR THESE PEOPLE, RECIRCULATING
AND DONALD TRUMP
STARTS RECIRCULATING THEIR
GARBAGE, THE CONTENT OF THE
VIDEO SPEAKS FOR ITSELF.
YOU SHOULDN'T BE TRAFFICKING IN
THAT STUFF.
AND IF YOU ARE A PRESIDENTIAL
CANDIDATE OF THE REPUBLICAN
PARTY, I THINK IT IS
DISGRACEFUL.
, AGAIN IT SHOWS HE IS UNFIT TO
BE PRESIDENT, AND IT IS FAIR
GAME TO SAY --
ALEX: THERE WAS NO TREPIDATION?
>> I THINK YOU HAVE
CONSIDERATIONS ABOUT EVERYTHING,
BUT LET'S BE CLEAR.
WE ARE TALKING ABOUT A GUY WHO
LOOKED INTO THE CAMERA WHEN HE
WAS ASKED ABOUT DAVID DUKE, AND
DAVID DUKE SUPPORTING HIM, AND
DAVID DUKE'S STROKING HIS FAVOR,
AND SAYING I DON'T KNOW ANYTHING
ABOUT DAVID DUKE.
DO YOU REALLY BELIEVE A
70-YEAR-OLD MAN RUNNING FOR
PRESIDENT OF THE UNITED STATES
DOESN'T KNOW ANYTHING ABOUT
DAVID DUKE?
OF A MAN WHO SAID LAST WEEK, I
WILL ALWAYS TELL YOU THE TRUTH?
HE KNOWS EVERYTHING HE HAS TO
KNOW ABOUT TRAY THE DUKE, AND TO
TRAFFIC AND IT MAKES IT WORSE.
JOHN: LET ME ASK A POLITICAL
QUESTION.
QUESTION.
YOU GUYS HAVE RUN MILLIONS OF
DOLLARS OF ADS IN THIS CAMPAIGN.
MAY HAVE BEEN PRETTY CONSISTENT.
BUT THEY HAVEN'T TALKED ABOUT IS
THIS STUFF.
THEY TALKED ABOUT HIS
TEMPERAMENT, HIS PIVOT, IS LACK
OF QUALIFICATIONS.
BUT YOU HAVEN'T GONE AFTER HIM
IN THE WAY YOU HAVE IN THIS WEB
VIDEO.
THAT KIND OF STUFF, IN PAID
ADVERTISING?
>> THERE HAVE BEEN ADVERTISING
ABOUT ODIE'S COMMENTARY.
JOHN: NOT FEATURING A KLANSMAN.
FEATURING OFBEEN
HIS HIDEOUS LANGUAGE TOWARDS
WOMEN, CALLING WOMEN PIGS,
DISGUSTING, BLOCKING A DISABLED
REPORTER --
JOHN: I'M NOT SAYING IT HASN'T
BEEN TOUGH, BUT WILL WE START
SEEING IMAGERY LIKE THIS,
FEATURING A KLANSMAN?
>> I AM NOT GOING TO TELL YOU
WHAT WE WILL SHOW IN THE FUTURE.
WHAT I WILL SAY IS WE WILL KEEP
HIGHLIGHTING -- THE MORE HATEFUL
HIS STATEMENTS ARE, AND THEY
CONTINUE TO BE SO, HIS SPEECH
LAST WEEK TO AFRICAN-AMERICANS
WAS A DISGRACE, HE CONTINUES TO
DENIGRATE AND STEREOTYPE IN THE
WORST WAY A POPULATION THAT IS
STILL STRUGGLING FOR EQUALITY,
BUT ALSO MAKING GAINS, BUILDING
COMMUNITIES, EDUCATING KIDS IN
THEIR NEIGHBORHOOD -- WE ARE
GOING TO HIGHLIGHT THE HATEFUL
STATEMENTS HE MAKES TO WHOEVER
THEY ARE ABOUT.
ALEX: WE HAVE SO MANY MORE
QUESTIONS FOR YOU.
>> I WILL HANG AROUND.
ALEX: WE WILL COME BACK RIGHT
AFTER THIS COMMERCIAL BREAK AND
CONTINUE THE CONVERSATION.
♪
JOHN: WE ARE BACK WITH JOEL
BENENSON, THE CLINTON CAMPAIGN
CHIEF STRATEGIST.
THANKS FOR STICKING AROUND.
I WANT TO ASK YOU -- I DON'T
WANT TO SPEND A LOT OF TIME ON
FOUNDATIONS.
BUT I DO WANT TO ASK YOU A
POLITICAL QUESTION.
A LOT OF DEMOCRATS YELL AT US
AND SAY, NO ONE CARES ABOUT
THESE MATTERS, NO ONE CARES.
ALL THE POLLING I HAVE SEEN,
INCLUDING THE NATIONAL POLLING
BLOOMBERG DID, WHICH SHOWS THAT
MORE THAN HALF OF THE COUNTRY IS
BOTHERED A LOT BY THE DONATIONS
MOREE CLINTON FOUNDATION,
THAN HALF THE COUNTRY IS WORRIED
ABOUT THE WAY SHE HANDLED HER
E-MAILS, IT SUGGESTS TO ME THAT
IT IS NOT TRUE THAT NO ONE
CARES.
A DECENT CHUNK OF PEOPLE DO.
YOU ARE A NUMBERS GUY.
IS THIS REALLY AN ISSUE THAT
BOTHERS NO ONE, OR THAT BOTHERS
NO REMAINING AVAILABLE VOTES?
>> THAT POINT YOU MADE IS ONE
THAT'S TRUE, AND I AM NOT GOING
TO JUDGE WHAT VOTERS THINK OR
DON'T THINK ABOUT THE ISSUES.
BUT IT DOES SAY THAT YOU HAVE
LOOKED AT POLL NUMBERS AS WELL
-- THERE ARE FEW PEOPLE LEFT TO
HAVEN'T MADE UP THEIR MIND.
WE'RE COMPETING FOR THOSE VOTES
AND VERY HARD, BUT AT THE SAME
TIME YOU HAVE TO KEEP YOUR OWN
VOTE.
THIS IS AN ISSUE WE HAVE
ADDRESSED IN THE LAST COUPLE
DAYS.
HILLARY CLINTON ADDRESSED IT
AGAIN LAST NIGHT, SAYING NO
EXCUSES, REMINDING PEOPLE THAT
HE YEAR AGO SHE APOLOGIZED THAT
IT WASN'T THE RIGHT DECISION.
I THINK WHAT HAPPENS IN THE NEXT
10 WEEKS, I THINK VOTERS ARE
GOING TO LISTEN TO A DEBATE
ABOUT THEIR LIVES.
I THINK THEY WILL FOCUS ON THAT
MORE.
I THINK THEY ARE GOING TO MAKE A
DETERMINATION ABOUT THESE TWO
PEOPLE AND WHICH ONE THEY CAN
COUNT ON TO MAKE A REAL
DIFFERENCE IN THEIR LIVES GOING
FORWARD.
JOHN: THIS IS YOUR GIG, RIGHT?
YOU HAVE MADE YOUR WHOLE CAREER
STUDYING WHAT VOTERS THINK ABOUT
ISSUES.
THAT, AMONGA SENSE
AVAILABLE VOTERS OUT THERE, THE
VOTES THAT ARE UP FOR GRABS,
THAT THIS ISSUE DOES NOT MATTER?
>> I THINK PEOPLE HAVE FACTORED
IN.
-- FACTORED IT IN.
THEY HAVE FACTORED INTO THE
TOTALITY AND THEY ARE MAKING
THEIR JUDGMENTS BASED UPON IT.
TENS OF MILLIONS OF VIEWERS TUNE
IN AND WATCH THE CONVENTIONS.
THEY BOTHE FOUR DAYS,
HAD FOUR DAYS TO LAY OUT THEIR
MESSAGE AND ARGUMENT TO THE
AMERICAN PEOPLE.
THEY HEARD EVERYTHING.
THEY HAVE FACTORED THESE THINGS
IN AND THEY ARE MAKING A
DECISION RIGHT NOW, A PERSON
THEY CAN COUNT ON TO TAKE THIS
COUNTRY WHERE THEY WANTED TO GO.
ALEX: LET ME ASK YOU THE SAME
QUESTION IN A DIFFERENT WAY.
IS IT YOUR OPINION THAT HILLARY
CLINTON HAS REACHED THE CEILING
ON HER UNFAVORABLE?
>> I THINK YOU JUST ASKED THE
SAME QUESTION.
IF YOU LOOK AT THE TREND IN
POLLING, WHAT HAS BEEN HAPPENING
IS THAT HILLARY CLINTON'S
NUMBERS AREN'T GETTING BETTER,
DONALD TRUMPS ARE GETTING WORSE.
ALEX: SO MAYBE YES?
>> I THINK IF YOU COMMUNICATE A
POSITIVE, OPTIMISTIC MESSAGE
ABOUT WHERE YOU WANT TO TAKE
THIS COUNTRY, HOW YOU WILL DO
IT, TELL THEM HOW IT IMPACTS
THEIR LIVES, I THINK YOU WILL
IMPROVE YOUR FAVORABLES.
I THINK THAT IS WHAT THEY ARE
DOING.
I THINK DONALD TRUMP, ON THE
OTHER HAND -- HE CAME OUT OF HIS
CONVENTION, NUMBERS GETTING
WORSE.
YOU HAVE TO THINK ABOUT THAT.
HE IS AS KNOWN TO THE AMERICAN
PEOPLE IS HILLARY CLINTON.
THEY ARE SEEING BOTH OF THESE
PEOPLE EVERY DAY.
HE IS SAYING THINGS THAT MAKE
HIS NUMBERS WORSE.
I CAN'T EXPLAIN IT TOTALLY.
I CAN EXPLAIN IT TO SOME DEGREE,
AND I THINK IT HAS TO DO WITH
HATEFUL RHETORIC, THE TONE OF
HIS CAMPAIGN.
'T TELL YOU.
I THINK HER NUMBERS ARE
IMPROVING BECAUSE SHE IS TELLING
PEOPLE HOW SHE WILL GET IT DONE.
JOHN: JOEL BENENSON, APPARENTLY
I AM NOT A CLIENT OF YOURS.
[LAUGHTER]
JOHN: THANK YOU FOR COMING IN.
WE WILL CHECK IN ON THE TRUMP
CAMPAIGN AFTER THIS.
♪
JOHN: THE LETTER OF THE DAY IS
J, BECAUSE WITH THE SLOWEST OUT
OF THE JACOBS AND JENNA JOHNSON
WHO COVER DONALD TRUMP'S
PRESIDENTIAL CAMPAIGN.
JENNA, LET ME ASK YOU FIRST.
HILLARY CLINTON GAVE A VERY
TOUGH SPEECH TODAY ABOUT DONALD
TRUMP ANY ALT-RIGHT.
HAS THE TRUMP
CAMPAIGN KNOW THIS WAS COMING
AND TO WHAT DEGREE ARE HIS
ACTIVITIES INTENDED TO MITIGATE
THE FALLOUT FROM THAT?
EXPECTINGVE BEEN
AN ATTACK LIKE THIS.
IN HER SPEECH SHE LAID OUT
EXAMPLE AFTER EXAMPLE THAT COULD
IN ATTACK ADS.
SHE LAID IT ALL OUT.
SHE GAVE A SPEECH RIGHT BEFORE
SHE DID IN NEW HAMPSHIRE AND
TRIED TO BEAT HER TO SOME OF
THESE THINGS.
HE WALKS THROUGH A LOT OF HIS
CONTROVERSIAL POSITIONS, CALLING
FOR RESTRICTIONS ON IMMIGRATION
FROM MIDDLE EASTERN COUNTRIES OR
COUNTRIES WITH TERRORISM.
HIS CALL FOR A WALL.
SOME OF HIS IMMIGRATION
POSITION.
AND, BASICALLY, HE SAID, HOW
DARE SHE PAINT MY SUPPORTERS AS
BEING RACIST FOR BACKING THESE