Skip to main content

tv   Bloomberg Markets  Bloomberg  June 9, 2016 2:00pm-3:01pm EDT

2:00 pm
sides together? summer working at the white house with the obama team and the clinton team -- is it a question of picking some from both sides or mrs. clinton saying here's who i want? is goinginton campaign to be in charge in terms of timing and the obama administration wants to be helpful. screen -- thehe scenes discreetly. we expect there to be a meeting begin -- between secretary clinton and senator to the extent that president obama can help put that in place shuttle diplomacy between the two sides, he will do that. the white house has indicated very clearly the president has
2:01 pm
indicated behind the scenes that he wants to be as comfortable as possible bringing the two sides together. he has the experience of being that guy waiting for the other person to come around and worrying about whether or not coming around will help or hurt the wondering about how to accommodate them and their platforms and desires without slipping away from the core running principle. how much can secretary clinton give bernie sanders without messing up her general election strategy? that will take some time. mark: i want to go back to megan murphy. the conversation has been about energizing. now energizing the democratic base. i imagine the sanders campaign manager take exception to that , what do yousay
2:02 pm
think we've been doing this whole time? the statements at the white house were quite positive for their campaign as they move toward unifying. it is going to be about when and where bernie wants to get out. it is no longer about whether he is -- how he will transfer that momentum to hillary clinton's campaign. be done with issues like income inequality, college education the picking up the banks that -- college education, breaking up the banks? murphy and margaret tello, thank you so much. that breaking news today, president obama has formally endorsed hillary clinton as the democratic nominee for president of the united states. i mark crumpton. betty liu, vonnie quinn, over to
2:03 pm
you. -- betty: wetinue will continue coverage of this breaking news. let's bring back margaret tello at the white house. also joined by megan murphy. just recap what we have learned in the last 20 minutes, the president has endorsed hillary clinton as the democratic nominee and he will campaign with her next week. this was all put out by clinton's campaign. megan: that's right. we knew that sender sanders would talk to the press corps after his meeting with the president, but that is about all we knew. things are moving very quickly. the president thinks it's time to get the party together and begin this campaign. the only thing that stood
2:04 pm
between him and doing that with was that meeting with senator sanders. before we get to the interview with hillary clinton, what kind of impact does this have on the campaign? what does this mean in terms of her fundraising power and her ability to unify democrats? megan: president obama has been itching to get in this for quite some time. we've had an interesting cycle. the rhetoric trump has been out thehe stump with is against america he is trying to rebuild . his approval ratings are at a near high right now.
2:05 pm
which is uncommon for second term presidents at this stage. he wants to give her that electricity come enthusiasm and support. he also has a lot of freedom as well to really criticize donald trump to try to hit him where he hurts. reminding people of his economic record, reminding people of where we've come from. reminding what role hillary clinton played in his foreign-policy approach. highlighting who she is, where she has come from. they will try to show a personal rapport between the two. vonnie: who will choreograph this dance? hillary's campaign or obama staff? anan: right now, it is hillary's hands -- in hillary's hands.
2:06 pm
theywill take the steps need to advance her campaign and when. -- and win. these two have fought and incredibly hard campaign. they will try to present a unified position and agenda for a democratic party. and how to keep the country moving forward, not just economically, but socially, to really deliver on the president's legacy. curious, whatd of do presidential endorsements usually mean? -- inave we seen the past the past? margaret: the only mean as much as the electorate is willing to give them. the republicans have been saying that hillary clinton wants to run to be a third term for president obama. to the extent that americans don't want a third term of , his aggressive
2:07 pm
campaigning may not be what she wants. current polling certainly suggests it would help her giving is going into this general election season. clinton knows historically and statistically she is working against the odds. they are hoping that the type of campaign donald trump is running combined with changing american demographics are really the iftors and bernie sanders you can pull his supporters together are the factors that will put her over the top. betty: i want to bring in jennifer epstein who just interviewed hillary clinton moments after this video was posted. what were the highlights from your conversation with clinton?
2:08 pm
jennifer: she did get to express how pleased she was with the president's endorsement, they have gone from rivals to close friends. to get such a substantive endorsement from the president was something that really meant a lot to her. he says she has what it takes, i've seen it, i thought against her, she can do this job. to have president obama who says i know how hard it is to be president, donald trump cannot do it, hillary clinton can. something hillary clinton things will be very powerful in the months to come. vonnie: did you talk bernie sanders at all? >> we did talk about bernie sanders briefly. she says she's looking forward to meeting with sender sanders soon -- senators anderson. she wants to bring the party together. -- senator sanders.
2:09 pm
she was in his position upping the runner-up in 2008 and she does not want to step into his emotional process in any way. presidenting with obama, senate leaders, the vice president. from there, they will both be focused on taking on donald trump. did she seem confident about taking down donald trump? a combination of her having a couple good days, going back a week to the foreign-policy speech she gave in san diego, a moment when she was able to take donald trump and show how dangerous he could potentially be on a foreign stage.
2:10 pm
that got a lot of traction, got a lot of positive reviews, even from conservatives or people who are concerned about donald trump on the right. that is something she will continue to do. to signal to us that she is very much going to try to toe the right line on wall street. betty: thank you, jennifer epstein. margaret, before we let you go, i'm curious to know -- we were talking about the stance between sanders and clinton. how exactly could they work together? is there any idea of a framework they could work together to galvanize the democratic party? margaret: there is the optics of it. the day sender sanders appeared -- senatorth clinton sanders appears on stage with clinton will be important.
2:11 pm
there is a nominating convention coming up. there are things that senator change.wants to as our policy moves they could begin to discuss one-on-one or through their intermediaries. vonnie: margaret tello, thanks. standby. live presse is a release we are waiting for. we will get you the headlines from that. megan murphy, i want to ask you one more time. the major news here is we now have an endorsement from the president for hillary clinton. does he beatencies
2:12 pm
up for her -- beef up for her? megan: she does very well among african-americans and latinos. her issue has always been white working-class men and white women -- donald trump has filed into that group. -- dialed into that group. she will look to the same people who work out by his message of some people who drifted to sanders who believe in the capacity for change. will hope shee and president obama can link up arms and give a progressive vision going forward. where are we moving forward? people are still feeling like it is tougher to get back into the
2:13 pm
workforce. to take care of aging parents and afford a college education. people call it anger. it is really disruption. much. megan, thank you so just a reminder that in just a few moments, we will hear from josh earnest, the white house spokesperson. we are awaiting this white house briefing. very likely, he will be getting with this endorsement from the president for hillary clinton. we are less than two hours away from the closing bell. shery has more from the markets desk. still in negative territory, but paring those declines. after gaining throughout the week, finally seeing u.s. stocks just -- the dow jones down .2%. the nasdaq also down .4%.
2:14 pm
the s&p 500 reversing that ten-month high. we are paring earlier declines. currently gaining 100 points, but still down .3%. to the imap function on the bloomberg, i want to show you the individual sectors. materials and financials leading those declines because of treasury yields. seeing them sinking to the lowest since a very. people are thinking about financials, the rebounds we fargo, bankat wells of america them all falling across the board as u.s. 10 year yield is now falling, sinking to the lowest since february 11. i want to show you raw materials
2:15 pm
companies. they are snapping a six-day winning streak. freeport-mcmoran copper polling 6% that's falling 6%. fertilizer stocks falling across the board. ofkey has banned the import nitrate fertilizers due to security concerns. we are seeing a stronger dollar countering the rally driven by crude supplies. some individual names bucking the downward trend. shery: we do have some individual bright spots out there. american airlines gaining 2.8% after the repeated forecast for better margins in the second quarter. we have smucker rising 8% because they send their quarterly earnings and sales
2:16 pm
topped estimates. food and helped by pet dunkin' donuts printed copy pods. shey risinge her 2.5% in speculation of a takeover to take place. we had some unverified tweets out there calling for a takeover. stocks helping the there. vonnie: let's check on first word headlines. mark: house speaker paul ryan has unveiled a national security part of the republican new agenda. calls for increasing military strength and taking the fight directly to islamic terrorists. for securing u.s. borders, but no talk of donald trump's proposal to build a wall between the u.s. and mexico. the supreme court says judges may in rare circumstances call injury back to the courtroom after it has delivered a verdict
2:17 pm
and was dismissed. 6-2 involvinguled a traffic accident case in montana. the judge discharged the jury before realizing the mistake had been made. them and they quickly ordered the men $50,000 before going home for good. feeling to get a serious agreement in syria will make a further escalation all too it is a war crime to withhold access. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. betty: thank you so much. we are still awaiting today's white house press briefing. it is just about to happen at
2:18 pm
any moment with the white house spokesman josh earnest. this comes after president obama and his endorsement of hillary clinton via video. we will bring the briefing to you as soon as it gets underway. here is president obama in his own words. obama: i know how hard this job can be. that's what i know hillary will be so good at it. been't think there's ever someone so qualified to hold this office. ♪
2:19 pm
2:20 pm
betty: this is bloomberg markets. vonnie: uber is expanding its offering commanding scheduled rides.
2:21 pm
loan customers to schedule rise anywhere from 30 minutes to 30 days in advance. that's allowing customers to schedule rides. betty: tesla is bringing back hour of itswatt sedan. tesla discontinued the model s 60 last year but hopes to increase sales ahead of the model three launch. s 90ore powerful model starts at $88,000. cars, flying cars could soon become a reality. some big thinkers in silicon valley -- vonnie: their plans are revealed in the latest bloomberg businessweek. brad stone us from san francisco with more. take?how long will it
2:22 pm
probably many years. the dream of flying cars has been with us in popular culture for a long time. there have been lone inventors, thinkers. workinght think crazy on this for decades, losing a lot of money. there are many companies around the world that think a personal electronic autonomous aircraft, the kind of commuting airplane for you and your family as possible. the big revelation is the alphabet ceo, larry page is personally financing two of these companies. betty: who are these companies? brad: what has been active for quite some time, z aero. they fly a prototype out of the holster airport. that's hollister airport.
2:23 pm
larry page has been unimpressed eeth the rate of progress at z and has started to finance a second company, a competitor called kitty hawk. was listed asne the president of the registration papers with the state of delaware that we found for kitty hawk. different technical orientation to realize the same dream. vonnie: what kind of prototypes do we have? will they be hovercraft or will they have wings? brad: more modest, more reliable versions of the old navy osprey. 150 rise up and go about miles on a charge. relatively low altitude.
2:24 pm
there are companies working on streetableled aircraft. you could drive them down the street to the launchpad. other companies see them as more service.r-like we may never own these. they may roll out as a service. vonnie: we will need charging stations in the sky, whaon't we? brad: it's part of this broader effort to rethink transportation. i see this as another effort like autonomous cars. this one is a little crazier. i think that's why larry page did it outside of google.
2:25 pm
there are some things that are too crazy even for google to back. betty: for google shareholders to stomach. why is he so interested in this? vonnie: we have to leave it there. the news briefing is starting in washington, d.c. at the white house. they had announcements they wanted to make today. i will do my best to get out of their way. answer anyre to questions you may have about their announcements. >> let's start with the obvious. if you could give us a bit of the readout of what the president and senator sanders talk about -- talked about. earnest: the president was
2:26 pm
pleased to have an opportunity to welcome senator sanders to the white house to congratulate him on the remarkable success he enjoyed in the context of his democratic nomination campaign. he competed in every state across the country and earn more than 10 million votes for his campaign. that is a remarkable accomplishments. the president congratulated him on his success. you can describe the conversation as friendly. focused on the future. future, the conversation was about the importance of the upcoming general election. you've heard the president say how important it is to him that he be succeeded in office by a president who is committed to on the remarkable progress our country has made over the last 7.5 years.
2:27 pm
that certainly was an important part of the conversation. the results of a conversation about the long-term future of the democratic party. campaigned and enjoyed so much success because he was able to inspire a lot of young people, both democrats and support his, to campaign and be engaged in the political process. president obama and senator sanders had an opportunity to talk about what work they could do together in the future to ensure the democratic party of the 20% is diverse and vibrant and inclusive. president obama had his own success at building a coalition that involved a lot of young americans. senator sanders built on that progress. there are hopeful they will be able to work together in the
2:28 pm
future. -- they are hopeful. /> they make any requests requests?y make any josh earnest: there is a lot of agreement when it comes to the future of the democratic party. there's also a lot of agreement about the highest priorities that the next president will have to grapple with. these priorities range from issues like addressing economic -- issues sender sanders discussed quite extensively on the campaign trail. president obama has had the ability to address. expanding economic opportunity for the middle class, making sure we keep our commitment to our veterans, making sure we give college graduates the
2:29 pm
ability to succeed and not be just weighted down with extraordinary debt. been talking has about these issues, too. in the context of his decades in public service in addition to his presidential campaign. >> [indiscernible] if you could provide a bit of how the president broke that to him. what was the response? is the president disappointed that senator sanders did not go and endorse -- josh earnest: no, senator sanders has been quite clear that he intended to compete for votes in the upcoming district
2:30 pm
of columbia primary scheduled for tuesday. i don't think anybody had the expectation that senator sanders was going to deviate from that plan. at the same time, the president has had the opportunity to talk to senator sanders three times in the last week. it is fair to say that senator sanders was not at all by the announcement. >> [indiscernible] josh earnest: i will not get into the details. i assure you that senator sanders was not surprised. statement in the driveway in front of the white house today by saying president obama and vice president vaden bidenst vice president had made a commitment to him. senator sanders said how much he appreciated president obama and
2:31 pm
vice president biden made that promise. why was it decided that the announcement would be made through a video? josh earnest: the video was recorded on tuesday. secretary clinton's campaign has already announced that there will be an event and the president is looking forward to traveling to green bay, wisconsin with secretary clinton to appear with her in person at a campaign event. and built support for her campaign in the state of wisconsin. >> [indiscernible] josh earnest: that is the only campaign event on the schedule at this point. i would anticipate that it is only the first of many campaign events between now and november. thisrking together on issue -- did sanders also have
2:32 pm
things he wanted to see from the white house? josh earnest: i will let senator sanders characterize the points he made in their meeting. was quite direct about his appreciation to the president for keeping his promise not to win that's not to -- keeping his promise not to weigh in. think bothders, i men are pretty enthusiastic about the opportunity that lies ahead. not just in advance of the general election but over the course of generations to ensure the future of the democratic party looks as vibrant and diverse as our country.
2:33 pm
as i mentioned yesterday when i spoke to a group of you, senator sanders has more than earned the right to make his own decision on his own time frame about the future of his campaign. the president respects the important work that senator sanders has done on the campaign trail. he respects the strong support he has built in all 50 states. that means senator sanders gets to decide when that's what the future of his campaign looks like. reiterated how critically important it is for president obama to be succeeded by a president who shares our values and is committed to building on the progress this country has made under president obama's leadership. that was part of the conversation in the oval office. the point and the
2:34 pm
outcome of this meeting? for president obama and senator sanders to continue the conversation they have been having over the course of this week. the states all the way back to january -- february the when senator sanders was here at the white house much earlier in the campaign. i don't think there was expectation that senator sanders was going to make some abrupt change -- betty: you are listening to josh earnest giving a bit of context to president obama's endorsement of hillary clinton within the last hour. as he was talking, there was a bit of a twitter war going on between donald trump and hillary clinton. out "obamap tweeted just endorsed crooked hillary.
2:35 pm
he wants for more years of obama, but nobody else does. " respon hillary clinton account." your president obama officially endorses hillary. betty: let's get more headlines. the story of the day, president obama releasing this video, tweeted out on hillary's announcing his official endorsement of secretary clinton for the democratic presidential nomination. president obama: she has the courage, compassion and hard to get the job done. -- heart to get the job done. i say that as somebody who had to debate her 20 times.
2:36 pm
president and mrs. clinton will travel to green bay, wisconsin next week to hold their first campaign event together. the endorsement comes after the president had talks at the white house with senator bernie sanders. he did not offer an endorsement of secretary clinton but did say he would do everything he can to prevent donald trump from becoming president. mr. trump responded by saying obama just endorsed crooked hillary, he wants for more years of obama, but nobody else does. california's strict gun rules have been restored by a federal appeals court. a ruling that allowed for permits to carry a concealed weapon by lead to the constitutional right to bear arms. the decision is a loss for gun rights advocates and the nra. spammerse top 10 worst in the world can blast out one
2:37 pm
million unsolicited messages from his san diego home in less than 15 minutes. michael had been under federal investigation since at least 2013. fbi agents are asking a federal judge to let them search is icloud account. political opponents join forces in northern ireland to speak out against brexit. they warned that leaving the european union could threaten peace in northern ireland. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. vonnie: in the hunt for new opportunities, blackstone's largest asset manager is making a foray into family wealth.
2:38 pm
blackstone now sees an opportunity. betty: heading up this strategy is john studzinski. come i should have let you introduce him. always great to have you here. we are talking about something different today. you call it family capital come i think of it in terms of family wealth. blackstone has been so successful raising money from in endowments andom pension funds and sovereign wealth funds. why the need to go into family wealth funds? been blackstone has an externaln having rate track record -- extraordinary track record.
2:39 pm
it make sense to move into another group of institutions, family institutions. erik: families are institutions? john: it is very different. family capital, family offices, that will area is a deeply personal business. the head of a family has very strong views. i'm sure your shareholders have strong views about how money is managed and invested. what we have noticed in the last five years, 10 years, there is a strong symbiotic relationship the talent and the content in blackstone and what families are looking for. families are interested not just invest in this private equity fund, invest in the
2:40 pm
credit vehicle. we are very strong in real estate. let's invest with john. they are also interested in investing with us and us helping them solve some of their problems. me --some questions for how big a check can some of these families right? i understand when a pension fund or endowment might want to call invest with a blackstone. in check required there is the tens of millions of dollars. our their families -- are there families wealthy enough to cut a check that big? erik: they have money to invest in alternatives -- those people want to look at projects, look at buildings, look at operating businesses. in many cases, they have their
2:41 pm
own wealth tied up in a business that might need fixing. we have the christiansen family who owned lego theme parks in denmark. i'm sure your children at one point played with lego toys. erik: you never know, john. i might play with legos. john: that was a situation where they wanted to refresh management of the themepark business and wanted to bring in someone who could be a partner they brought in our private equity group. we actually worked with them and restructured the themepark business which ultimately was merged -- erik: if we were to add up all the family capital available in the world that is potentially interested in blackstone, how much are we talking about?
2:42 pm
john: the same amount of money over the next 10 years represented by sovereign wealth funds could trillions of dollars. the wealthiest places in the china, but even in a place like germany, the number of ople -- how many billionaires would you guess? erik: probably quite a few we don't know about. john: probably at least 150. by wealth that has been second, third and fourth generational. wealth that is tied up -- they are interested in
2:43 pm
keeping their operating business or restructuring their operating business with a slightly more cosmopolitan partner with us -- like us. what about the flip side? what about the risk? if you are raising money from institutions that will pass a public smell test. some of these families come with past acts of elite systems and politics that may not fit so well with blackstone. how do you scrutinize them? -- john: ine cases some cases, it is not the similar from our long-standing -- the government of singapore, it is a long-standing trusted relationship. while we show them a whole range t alternatives, we
2:44 pm
aspire to be the same thing to a group of those of family capital. -- pools of family capital. erik: what i'm trying to understand is whether they have to pass a test -- are there wealthy families blackstone is not interested in doing business with no matter how much money they have? erik: you take -- john: you take a case-by-case. that's a range of families will be interested in blackstone or only one or two areas. they will have an international perspective. and a profile that does not introduce risk to the firm. john: you are making it look like we apply profile to families -- erik: wealthy families in latin america that have sponsored governments that have done
2:45 pm
unthinkable things, they may have done unsavory things -- john: everyone has to go through your client test. that is good housekeeping. that is what a blackstone would do. that is what any firm on wall street would do. you have to be careful and know who you are dealing with. they want to know who they are dealing with. erik: what does blackstone have to do differently to cater to these group of people -- groups of people? john: we are shifting from a pure product orientation where we have strong products in each area, whether it is private equity or real estate, to a longer-term relationship management. that happened anyway. steve has built a firm now that is 30 years with an extraordinary track record.
2:46 pm
many sovereign wealth relationships that have been in place for 15, 20, 25 years. once you build a long enough trust means all families are not going to be interested in all types of asset vehicles. thing wehe longer term have to do is to take a long-term view of our relationships and relationship management. there are many asset management firms with which blackstone competes that would like to find new clients, grow their assets under management. how competitive are they? john: it is very competitive. on issues like fees and being cutting-edge. because we are in all four areas , we can offer a
2:47 pm
broader menu. even in this market right now with this extraordinary volatility, so many interesting things we're seeing monthly we can talk about. erik: i wanted to raise money from calpers. they are on the internet. easy for some of these wealthy families, is it? how many other firms can get to these people with what you believe and i presume, to be the access that a blackstone has? john: blackstone is blessed with a strong brand name and track record. steve -- he is a very humble origin. made his wealth by developing extraordinary business. many families identify with that.
2:48 pm
a number ofare other institutions, firms, credit suisse, ubs, who have business outs long of cultivating the cuts of relationships you are trying to build right now. what response do you find from these gigantic wealth managers? many of them we have a very good relationships with. we have people in blackstone -- it is my objective to demystify blackstone. people who have expertise in regions and asset classes and industry groups. many families will call up and say i want to talk to dwight scott in your credit area they know dwight is one of the smartest people in credit.
2:49 pm
they will develop a relationship there. erik: thank you very much. always.eing you, as john studzinski is here to demystify it for us. betty: erik schatzker, thank you. much more ahead on "bloomberg markets." president obama throwing his support to hillary clinton in the race for 2016. we have more analysis on this, straight ahead. ♪
2:50 pm
2:51 pm
betty: this is "bloomberg
2:52 pm
markets." on valeaneaking news t. they are said to be working with goldman sachs on a sale of its egyptian drugmaker. the company is trying to reduce as it has been under the gun from everything from allegations of accounting fraud to the criticism in washington about drug price hikes. all of this leading to management turmoil. vonnie: this means in some assets are on the block and getting sold off and the share price is responding. up four present. desktopp four present -- up 4%.
2:53 pm
times theage 6.2 2016. the company just cut their forecasts for their earnings as well. time for the bloomberg business flash. managerbrazilian asset plans to raise $300 million for a new private equity fund. the chairman said they already have a hot investment pipeline and expects the fund will invest in six or seven companies overall. betty: a big green energy project will cost from utilities more than twice as much is expected. there no estimate they will spend more than $11 billion to the northturbines in with the biggest industrial users in the south. the german government says the power cable needs to be buried
2:54 pm
underground. vonnie: bill gross warning that pumpsl-bank policy trillions of dollars into bonds with negative interest rates, negatively backfiring eventually. gross said global yields -- a supernova that will explode one day. that is your business flash update. shery has today's sectors binder spidr etf -- sector report. shery: the xl you, the utilities .7%, the utilities etf
2:55 pm
. historically, utilities are one of the highest dividend groups. let's look at individual utilities. ,he biggest gainers consolidated edison gaining 1%. we are seeing these gains right now. only last week, the s&p 500 saw treasury yields drop. natural gas now rising more than 5%, 5.8%. jumping to an eight-month high. government data showing a supply gain fell short of analyst estimates. demandummer will boost for the fuel from power companies, giving a boost to those power companies.
2:56 pm
there is one lacquered there, there --d -- lacquered energy.there, the market was overlooking a drop in payout. today, we see the xlu gaining 15%. betty: we are getting more breaking news here. president obama's endorsement of hillary clinton. harry reid sang bernie sanders saying bernie sanders has excepted that that's accepted that hillary clinton is the democratic presidential nominee. ♪
2:57 pm
2:58 pm
2:59 pm
betty: it is 3:00 p.m. in new york, 8:00 p.m. in london. vonnie: welcome to "bloomberg markets."
3:00 pm
betty: from bloomberg world headquarters in new york, i am betty view. vonnie: i am vonnie quinn. final hour of trading. comeback. making a economic concerns linger. betty: president obama formally backing hillary clinton for president. he met with bernie sanders, who is still not ready to concede. vonnie: on a lighter note from you can schedule a ride from ub er. a game changer in the competitive ride handling business? betty: we are one hour from the closing bell. the latest on this comeback that petered out.


info Stream Only

Uploaded by TV Archive on