tv Bloomberg Markets Bloomberg May 31, 2016 2:00pm-3:01pm EDT
from bloomberg world headquarters in new york, i am david gura. u.s. equities on pace to close the market in the green. what will drive trading going forward? bei think china is likely to risk factor in the shorter-term, but over the medium-term, the greatest risk factor is monetary policy exhaustion. shery: $50 a barrel as supply disruptions continue. should the olympics go on in brazil with the zika virus? we were asked tom frieden -- we will ask tom frieden from the cbc in just moments. -- cdc.
, even inocks are mixed the wake of a lot of economic data this money, personal spending rising to the highest in seven years. the nasdaq still hanging onto a gain, the dow and s&p in the red. they have been for most of the session. volume continues to be lower. you would have expected that going into the holiday weekend, but now, coming out, we have the same phenomenon. volumethe board, the averages lower. volume there.t the major averages, seeing mostly gains with the exception of the doubt, the s&p up about 1.3%, third straight monthly gain for the s&p 500. in terms of best point
performers, the ones that contributed the most to the s&p gains, we've got amazon.com trading at a closing record high today. apple shares showed a rebound on the month. we will be talking oil in a few moments. i wonder how commodities fared in may. julie: we've had a big recovery from the lows of the year. that continued in the month of may, up 10% here. a phenomenal run for oil prices this year. look at the other commodities, the picture did not look quite as good. gold and copper having their worst month since november. gold is still higher on the year. iron or plunging as well -- iron ore plunging as well. it has held up relatively well on the year, so that pulled back
coming after what had been a rally. a lot of speculative buying in china until this month. shery: thank you so much for that. let's check on the first word news this afternoon. pressure tor account for money he claims to have raised for veterans, donald trump outlined a list of charities he says perceived millions of dollars from a fundraiser held earlier this year. >> i've been thanked by so many groups, great veterans groups. people sent by hillary clinton are picketing that the money was not sent. the money has all been sent. i wanted to keep it private because i don't think it's anybody's business if i want to send money to the vets. trump claimed he
sent $6 million, but his campaign will not disclose which charities received the money. 38% of americans say they have little confidence that the democratic nomination process is fair. 44% say the same for the republican party process. 40% say they only have some confidence in each party's nomination process. president obama is urging americans to be prepared for the coming hurricane season and warns against growing complacency when it comes to the weather. there is a 45% chance the season will be near-normal. last year was slightly below average. hurricane joaquin killed 33 sailors.
fromnd is feeling the pain job cuts at microsoft and nokia and is asking the european union for help. they've been hurt by intense competition from competiti appld samsung. sheddingd it is 1000 positions. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. thank you so much. organizationlth has labeled the zika virus a growing public health emergency and officials believe it will hit every country in the americas. david: the obama administration has asked for $1.9 billion. tom frieden joins us from
atlanta. i want to ask you about word from the who this morning, new guidance, the who strongly recommending women to delay conception for eight weeks. does the u.s. plan to offer similar guidance? tom: we already have. what is really unusual about zika, you have a situation where a single mosquito bite could result in a terrible malformation. that has never happened before. it is new, it is different and it is scary. we've said since january 15 that pregnant women should not travel to places where zika is spreading. do what you can to protect herself. live in a place where zika is pretty, there's effective ways to avoid pregnancy.
has not yetess passed a resolution on zika. how are we doing on preparing ourselves for what is to come during the summer? tom: we have to get this over the finish line in congress. i'm encouraged that both people -- that people on both sides of the aisle understand it is an emergency. congress did the right thing with ebola. i'm hopeful they will do the right thing with zika. the sooner the better. the window of opportunity is closing. the resources to protect american women, protect people from zika and that can only be done with a long-term commitment that starts soon. david: what is being delayed at this point? vaccine, spraying against mosquitoes? tom: we've borrowed money from one fight of fighting emergencies -- from one fight
against emergencies to stop mosquitoes. this is a difficult mosquito to control. the sooner we start, the sooner we can do it. to better developed tests diagnose and vaccinate against it. have been calls to delay or relocate this year's olympics in real. would you agree with that? tom: from a public health standpoint, there's no reason to delay or cancel. we give travel advice regardless of what you travel. whether you're going to the olympics or a wedding or business or vacation. if you are pregnant, do not go to a place where zika is spreading. youru are a male and partner is pregnant, you need to use a condom when you get back david: a conversation about this
is not happening. are you satisfied there is a robust conversation globally about issues like the limbic system or? -- the olympics this summer? tom: you have to look at the numbers are to travel to the olympics represents less than one quarter of 1% of all travel to areas that have zika spreading. not if the olympics were happening, it would not change the risk of spread of zika around the world. ever more tightly interconnected world. it matters to us how diseases are stopped and prevented around the world. the good the latest example of that. build our continue to defenses by strengthening the ability of countries around the find problems when they first emerge and improve our own system here in the u.s. rapidly andve more
robustly to protect americans. shery: we've been hearing that there are already hundreds of pregnant women likely infected by zika. how big is the threat to the u.s.? tom: we will see several patterns we have 40 million travelers a year to places where zika spreads. we will see people who get infected during travel and come back. there's risk of sexual transmission of zika. there are parts of the u.s. that of have some clusters similarly spread infections in the past come as a we would not be surprised if we see some cases there in the coming months. and then there is puerto rico which has been dealt a difficult hand by nature. they may have large numbers of cases, so we have to work faster
to protect the people there. david: you are aware of all three plans. what is the greatest omission in the senate plan and house plan? tom: the senate plan would give us a good start. the house plan is problematic, it does not pay back the other emergency money that we need. we're just reshuffling things and basically taking money from one emergency to fund another. we have to get the full response needed to zika. at the same time, continue to keep up our guard against other severe threats from emergencies where we provide support, continuing to stop the evil outbreak and coming back -- ebola outbreak from coming back. we have to focus on today's crisis and on preventing the
crises that may come back or maybe in the future. david: how much longer can you shuffle funding? tom: it is very challenging. every day that goes by, we are not turning programs that can protect americans. the sooner we can act to restore and move forward with plans to protect american women, the better. david: are we talking weeks or months? tom: every day counts. ,avid: that is dr. tom frieden director of the cdc in atlanta. australia may be on the verge of having its seventh prime minister in eight years. party returned t to power? shery: with computers eventually central bankers?
23 years of consecutive economic growth. we had to deal with a transition in our economy moving beyond that. skills and education are critically important after the mining boom. we have to plan around those things. that growth is something to be proud of, but to sustain it, how you invest the proceeds, those are the dominating issues. labor have a positive plan. david: why has there been six prime ministers and eight years? trend i hope not a will continue. circumstances change from time to time. personality is less important than good policy. good plans from listening to people.
that is what the labour party offers. explain,t difficult to but hopefully people will make a choice that is an optimistic one, they choose labor and we will have a continued period of economic growth and agility we need to make sure we've got everything set up for a cha nging economy in uncertain times. , employment come our prospects over the medium those issues, dominate the campaign. there's issues around skills and how we make sure we make the best of my richest asset come our people. ir critical thinking and
capacity to get things done. the other areas are important, but jobs come a stronger economy arestronger future are what dominating the lines of australia's. that australians. the people are not buying simply on price. there's great public transport. open space, galleries and sporting events. we have a great culture in our city. demand is simply not on price. that is not simply on price. they are helping us maintain and build an even better offering. it's only for that everybody pay their fair share. through new taxation
arrangements, we will have those. make a contribution to keeping melbourne and victoria the center of australian growth. david: you had the rba cut rates. growth and inflation are still not where you need them to be. daniel: we are focused on ideas and skills. you cannot build a modern economy or transition economy until you turn your challenges into opportunities, giving every single citizen the skills they need for the job they want. and the knowledge base that a changing economy needs. we have to be much more assertive reaching out to the world. we have to get things right at home as well. that starts with good skills-based education. the most important thing is to be clear on what you want to do and waste no time doing it.
that is what the market wants, what voters want and what a stronger future is absolutely based on. david: my exclusive interview with daniel andrews. shery: julie hyman has a check on some company movers. julie: a lot of deals that have great plainsd -- energy buying westar energy for billion.lion -- $8.6 we've seen a lot of futility deals in the past year. this is the latest in that streak we have seen. there's been a flattening of electricity demand. that's why we've seen a lot of these companies teaming up. , jazz agreeing
tobuy celator to get access an experimental cancer treatment. jazz down, but not down by that much. the maker of marketing software being acquired by vista equity partners. $1.79 billion. been analysts today coming out and saying there might be a competing bid for this company from a giant like microsoft or sap. some kind of acquisition of the company has been rumored for quite some time. still, quite a pop. , how dotill ahead advances in artificial intelligence could lead to janet yellen competing with a machine. that is next. ♪
david: artificial intelligence could be a disruptive force in more areas, including a central banks shery:. you can read about it in the latest "bloomberg businessweek." janet yellen be replaced by ai anytime soon? to sayink it is safe that janet yellen's job is pretty secure at the moment. that reasonable to say within five years come artificial intelligence will be making a meaningful contribution to the decisions that monetary policymakers make. david: are the eager for this to happen? chris: i found different reactions to that. some of them are indeed very keen on the technology. is perhaps england
the most enthusiastic about exploring the possibilities. they have a unit that is dedicated to using technology in new ways. saidis time, they have they are experimenting with artificial intelligence. they are getting there. this: explain to us how focus of ai works, machine learning, essentially. chris: central banks do a lot of things, essential to that is having a benchmark interest rate to try to guide their economy in just the right way. because monetary policy works with a lag, crucial to setting just the right interest rate is economic forecasting.
artificial intelligence can be used to perform that kind of economic forecasting, say looking at what will unemployment be, what will inflation or growth be six to 12 months down the road. you cannot program a computer in the traditional sense to make those forecasts. the use machine learning, the technology that allows the computer to learn a task without being explicitly programmed. it doesn't by sifting through mountains of data and in thezing patterns data to make a prediction. david: thank you very much. ♪ get ready for the rio olympic games
by switching to xfinity x1. show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. david: from bloomberg world headquarters in new york, this is "bloomberg markets." shery: let's start with the headlines.
taylor: jurors have found the former suburban chicago police officer guilty of trying to hire someone to kill the prosecutor who helped convict him in his third wife's debt. peterson was accused of trying to hire an inmate's uncle to kill the states attorney. peterson is serving a 38 year sentence for the killing and faces up to 60 more years in prison. california governor jerry brown is asking hillary clinton for president as california holds its primary next tuesday. writes that clinton is the only way for democrats to win the white house and stop the "dangerous candidacy of donald trump." hillary clinton is a 13 point lead over bernie sanders
in california. a 51% support among likely democratic primary voters compared to 38% for sanders. california holds its primary next week. prosecutors at the 9/11 war wants wonton obey victims'sntanamo bay families to testify. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm taylor riggs. david: commodity markets closing in new york. let's look at today's biggest movers, starting with copper, 10thng today in the
biggest drop since november. usda: a report from the shows a dryer outlook in most of ins states.a going over $50 a barrel at one point, then closing at $49.02. oil is set to cap the longest run of monthly gains in five years before opec meets thursday. shery: let's bring in stephen schork. he joins us now from philadelphia. thank you for talking to us. i want to talk about expectations for production of crude and natural gas. this chart shows that
expectations for production of crude and natural gas are climbing. we are seeing prices falling in the past five years. will this subdue prices for ?onger perhaps more m&a. stephen: one of the largest arabia's about saudi intention is that saudi arabia was trying to destroy north american crude oil production. industry done the oil in canada and the u.s. a tremendous favor. companies toing retrench. oil in a certain place would have cost a certain amount, $75 a barrel, you are now looking at
fields that can produce profitably at $60 come all the way down to $25 a barrel. this is not good news for the workers. with the industry as a whole when it comes out, when we start m&a activity, up you will see these assets acquired by companies that have a lot of cash on the books. they will be able to extract margins at lower oil prices for period of time. going into the peak demand season, we have the largest state of unplanned outages from the canadian wildfires to , militant libya
activities and we are still awash in oil. point, we will see lower for longer, but let's put quotes around "lower." we become more productive going forward. david: the oil minister saying the rules of supply and demand are working and that the market will fix itself. are you optimistic here that we will get some sort of deal from producers? stephen: i'm optimistic that we will get no such deal. we are looking at the greatest chasm between the sunni and shia sides of opec. this is much greater than it was in the wars in the mid-1980's.
there is no way saudi arabia can market sharee with iranian barrels coming on the market. deal in theer see a foreseeable future between these two. they will continue to jockey for position. the concern here, where are they jockeying for position? in asia. japan continues to roll in and out of recession. now, you have two major producers that will continue to put oil in the market that is not capable of drinking all those barrels. this has as much to do with theology and geopolitics as it
does with economics. how much will the rising dollar play into all of this? david: the rising dollar is a huge factor. stephen: what of the biggest drivers in the crash in oil prices in the last year. we saw a major crash in every single industrial commodity out there. the rising dollar was certainly a catalyst for that weakness. chinesehy are the continuing to devalue? they are concerned about the rising dollar. i rising dollar will certainly make it much harder to continue this rally in oil. to where back on track we were a year ago, i would expect to see a retrace in oil
prices. david: is there a nexus dental dilemma for opec right now? what will happen with this organization going forward. x essentialan dilemma for opec right now -- x existential dilemma for opec right now? stephen: we will transition away from a cartel to more of a .egitimate producer group not only is it the chasm between the sunnis and shia, but also nots.n the haves and have you have the socialists down in , what a nightmare that
has become. you will see a divergence within al opec. a realignment of parties that have like interests. minutes,ming up in one warren buffett set to get back $8 million -- uber entering the subprime lending business as it tries to boost its roster of drivers. david: shares near their lows of the session, the dow down .7%. more "bloomberg markets" coming up. ♪
david: this is "bloomberg markets." time now for the bloomberg business flash. missed equity partners is buying market oh -- vista equity marketo.is buying they had been the subject of bid speculation recently with one report that microsoft was preparing a deal. airline cheats have a problem as they gather for their annual meeting, a slowdown in carriers adds capacity to exploit lower fuel prices. moved passenger traffic last month at the slowest pace since january 2015. david: 40,000 verizon employees
heading back to work tomorrow after walking off the job six weeks ago. health care plan changes to save become but he money. save the company money. shery: warren buffett getting money back from his investment kraft-heinz. david: craig giammona covers consumer companies. craig: this goes back to when the private equity firm got together with buffett to take heinz private in 2013. a great investment at a time
when he struggled to find places to put his gas. this all goes back to taking heinz private. raft gets with buffett to take over heinz. it is a big deal for the company. they are paying much less on the , they beat estimates in the last two quarters. they face the same problems other food companies face. krafttried to update and are now cheese making organic capri sun. they will make the bottom line look better. can they sell more?
hopefully this will free up some cash to allow them to do that. david: there's been huge consolidation. craig: there has. there is more coming. ,he model at 3g has been buy take two years to digest and buy by again -- and then again. when bill ackman took a stake in leaves -- m-- mondo delez, there were discussions. tell us about how the company has evolved since the merger. craig: they closed factories and cut jobs and improve the bottom line.
they look at everything from top to bottom. they took out the mini fridges free jell-o more and string cheese. long-term can make they sell more macaroni and cheese and sup?h up -- and kat findinghad a hard time places to put cash. hard to say where they are looking next, but they have plenty of cash. the question is where it is going to go. david: julie hyman has a look at etf's.tech have you tried organic capri
sun? julie: i've seen it. the xpi is higher. all three major averages are now lower on the session. ickedasdaq has now t into the red. this sector's performance is even more impressive. there are no headlines, but you tend to see momentum when you are talking about biotech stocks. ahead ofeing an uplift of the american -- the acquisition of celator may be giving lift to other
stocks in the industry. biogen also on the rise. the european regulator released a positive opinion on a new use for the multiple sclerosis medication. the fda also approved a new medication to treat certain as well.ms eva approval for at medication -- it is getting a lift along with it. this has been a big momentum group, iraqi group as well. rocky group as well. the declines in biotech began last year when the folks on the campaign trail started making
comments about the high price of drugs, congress started examining that as well. it has been declining ever since, right now, trading at its highest since january 12, but not enough to salvage it from those declines that we've seen. has a coming up, uber of business, giving loans to would be drivers with less than stellar credit scores. -- a new line of business. ♪
did come of the sharpness of the volatility actually was a benefit to us. it so sharply backed up that a 10% yield in the high-yield market allowed us to focus on buying opportunities rather than trying to decide if there was a fundamental challenge in the market that we had to address. shery: you can hear more of mark's interview in the next hour of "bloomberg markets." --l street is expending uber's subsidiary will use the drivers lease money to david: -- why isdavid: bloomberg doing this -- david: why is a uber doing this? the demand is there.
uber needs more drivers on the roads. uber has been operating this leasing program since july. this is a way for drivers who may be don't have great credit to get a lease that they would not be able to get otherwise and they can start driving for labor. we know uber has been taking funding from companies like toyota. toyota is getting involved in .easing cars to drivers as well the program was picked by a whoman commodities trader now runs the program at uber. uber is maintaining with a story that they are not trying to take money out of drivers pockets. the sole goal is to get drivers on the road.
jonathan, who runs the program access tonge provides high-quality cars with the ability to break the lease early with minimal fees. luber is encouraging drivers to uber ises -- encouraging drivers to log miles. woman would be paying $25,000 to ube over the courser of three years. the kelly blue book value on the car is $18,000. is that a fair trade? uber claims the sole purpose of this program is to get cars on the road. shery: what about other drivers? what are they saying about the leasing program? emily: a reporter spoke to six different drivers for this story
and they all have fascinating anecdotes. a young man who got in an accident on his own time, could not afford to get a new car, was able to get one through this ubering program -- takes the payment out of your paycheck. this individual stops making as much money and just could not make the bills, so he said i will not drive anymore. point ubersome would come to collect. this driver left his car in the garage with a note on it that thanks."nks, but no it was two months before someone came to get the car.
these people we spoke to, they would not be able to get a car any other way. they have horrible credit. this gave them the opportunity to have a job and a car. david: thank you so much, emily chang. you can see more tonight on "bloomberg west" at six clock p.m. eastern time. -- six clock p.m. eastern time. -- 6:00 p.m. eastern time. the dow is down .8%. more "bloomberg markets" coming up next on bloomberg television. ♪
♪ good afternoon. are watching in this hour. the final hour of training in the last day of the month. session lows and economic headwinds may be on the way. the rest of the week could support the case for higher u.s. interest rates. druger merger in the industry. pharmaceuticals, another m&a frenzy? volkswagen still paying the price for its cheating scandal. profits from its cars plunge 86% in the first quarter. there are signs the automaker has turned the first quarter. the than one hour from close of trading, let's head the market desk where julie