tv Bloomberg Markets European Close Bloomberg June 23, 2016 11:00am-12:01pm EDT
close on bloomberg markets. we are going to take you from new york to london in the next hour. here's what we are watching today. the uk's 46 million registered voters go to the poll to cast their ballots on eu membership. u.k. law prevents us from reporting on voting or discussion of referendum issues. but we will be following all the action across the day. two major rulings from the u.s. supreme court in the last hour, the high court agreed to affirmative action and college admissions, while sco presidentdlocked over obama's plan to shield as many
as 4 million undocumented immigrants from deportation. mark: volkswagen is said to be diesel cars. its the company agreed to fund a grant program to offset air pollution. we will have details on the latest plans from berlin this hour. vonnie: it is 90 minutes into the trading day. julie hyman has been monitoring the moves. julie: it is risk on sentiments we have seen in the market today in the u.s. and europe. all three major averages are higher. the s&p back above 2100, and the breadth is broad today. we have 443 stocks in the s&p 500 that are higher at the moment. only utilities down. everything else was in the green.
financials, energy all up by at least 1% today. on the list. that is after the ceo terry lundgren said he will be stepping down. president of the company jeff jeanette will be taking over not until the first quarter of 2017. lundgren will remain executive chairman after the transition. here on chart bloomberg. if a stock is risen about 150% under his tenure, although it has had some considerable ups and downs, mostly downs as we have seen a downturn and retail broadly, and that downturn is reflected in the same store sales numbers under his tenure. are negative same-store sales. there have been some investors that have been pushing for macy's to monetize its real
estate. r bloomberg intelligence retail analyst said that may be one of the reasons for this succession plan being announced. we are looking at fertilizer makers, and that's because of potash. india close to signing an accordance with belarus. companiese fertilizer and industries are rising today. we are looking at that ship related companies. rbc is talking about western digital, saying the company should benefit from improving demand for chips. those stocks helping lead the gains in the s&p today. our global macro
movement. this is the column you want to pare out, major equities in europe today. italy is up by 2.8%. has been quite a rally in the last five days. $600 billion --600 billion euros in value. in the u.k.erator reported the second straight quarter of u.k. sales growth. slightly ahead of estimates, another win for the ceo. he wants to win back disaffected customers, giving them better service. this is the tesco share price versus the 12 analyst target price. it diverged, it converts to.
-- converged. big story today, scandinavia's biggest bank had its recommendation cut to neutral from overweight, pointing to to turnthat it may have to markets to raise regulatory capital for underestimating the risk in its corporate loan back -- loan book. is rejectedordea reports -- big news for greece today, the the waiver ong greek debt. that allows the nation back to the sector to axis cheaper financing, such as these new four-year loans which will be available. the yield on the 10-year is falling today. the yield on the two-year is falling today as well. vonnie: let's check in on the
bloomberg first word news. taylor riggs has more from our new york newsroom. taylor: u.k. citizens today are voting in a referendum on the country's citizenship in the eu. u.k. law prevents us from reporting or discussion and analysis on referendum issues while polls are open. but we will be following all the action as the results come in. police say there is a threat situation at a movie theater at a town in southwestern germany, near frankfurt. one newspaper reports there is a suspect in custody and 25 people were injured by pepper spray. two key rulings from the u.s. supreme court. overustices deadlocked 4-4 president obama's immigration plan that effectively kills it for the rest of his presidency. the plan would have shielded up to 4 million unauthorized
immigrants from deportation. justice was handed a major victory for supporters of affirmative action. the race upheld conscious admissions program at the university of texas at austin. the vote was 4-3. justices ruled against a white woman who said she suffered unconstitutional discrimination when she was rejected by the school. in baltimore, the police officer raising the most serious charges in the death of freddie gray has been found not guilty. the officer tro the van in which gray suffered fatal spinal injuries. none of the officers charged in gray's death have been convicted great house republicans refused to give into an unprecedented protest by democrats. they adjourned the house for the fourth of july recess today, almost 16 hours after democrats began a sit-in. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus
around the world. i'm taylor riggs prayed this is bloomberg. -- riggs. this is bloomberg. vonnie: volkswagen is preparing a settlement for car owners would pay themal up to $7,000 per car. it is all part of a $10 billion negotiated.eing this is guarding two people .amiliar with the talks $7,000 per car, will this be enough to satisfy car owners in any other party that was offended by volkswagen's scandal? that remains to be seen. it depends how long you have to wait for that money. $7,000 for a used vehicle is not bad. pricing thisnitely
in a way to resolve the issues. they will be pleased to receive the money for their cars. it's a matter of implementation at the end of the day and the calculus involved for every car owner in getting to the number that they will get themselves could become located, it's not going to be a simple process. it's clearly a sign that volkswagen is moving forward in the process. vonnie: why did it take them so long, chris? it took the leadership a long time to come up with this. why? chris at the start of the process:, full swig and took a long time to get its head around what it is facing. the first effort was wanting to fix the cars.
the regulator said, we can't guarantee these fixes you are have ang and we want to process that takes these vehicles off the road and stops them polluting once and for all. that has been a delay in the process and once that recognition process took place, it was about coming up with a solution. all kinds of vehicles dating as far back as 2009, some vehicles on lease, some vehicles owned. vw's ownerses as are seemingly split for the first time over this diesel scandal. what do we know about lower saxony? , they refusedgen to back -- there's a shareholder meeting on wednesday and lower saxon refused to back, ratified the actions last year of two board members.
to that is those two individuals are being investigated by german prosecutors. with that background, lower saxony abstained from voting. it was an unusual move. they did not really flag that in advance. it's an unusual break the mainen volkswagen's shareholder group, lower saxony is the second-largest shareholder. mark: thanks for joining us, chris wright in berlin. in germany, 25 people have been injured by pepper spray during an incident in a town about 45 miles south of frankfurt. a mk and possibly armed man is
at large in the cinema complex with eyewitnesses reporting shots fired into the air. this is according to the german newspaper. special forces are underway to assist in the incident, according to the newspaper. we can go to caroline hyde. hyde after this short break. do stay with us here on the european close on bloomberg television. ♪
just some developing news out of germany, 25 people have been injured by pepper spray during an incident in the southern german town about 45 miles south of frankfurt. this is according to a newspaper. let's get some more developments on this story. caroline hyde is in berlin. what can you tell us? caroline: at the moment, nothing is clear. we have been seeing across social media and on the television reports that a gunman was barricading himself within a near themplex just city of frankfurt, south of germany we are talking about. it is understood that many have been injured trade we do not know what the extent is and why they have been injured great there are some mixed reports, some of them calling it on the back of pepper spray used during
the incident. others talking about an armed man. detailed to bea ironed out about the exact reasoning behind these injuries. it is thought 25 people at least have been injured by pepper spray and by an incident in the southern german town of vie rnheim. other press reports talking of an armed gunmen, masked, possibly armed, in a cinema complex. we have that very tragic news coming out of the united states last week, and that within the club when looking across the whole of europe is whether or not to be on stated alert. many cities -- the paris terror attacks have not had the beginning of this year and last. all of this putting germany on standby. it seems at the moment police have cordoned off the area
marked and special forces are underway to assist in the incident. we will be rifling through all of this for details for you. there have been some reports that the incident has happened -- and it in the perpetrator being killed. this is all just local press reports, very unclear. it seems an incident has happened in the south of germany. that.: thanks for our berlin bureau monitoring the situation in germany and we will bring you more headlines as we get them right away. mark: more highlights from the global interpreter ship summit in stanford, california. sat down with the u.s. secretary of state john kerry at the summit and talked about the intersection of democracy and technology. kerry: in terms of communication and speed, their freedom to invest, the nature of risk-taking, tends to want openness that i think it works
more effectively but is not exclusive to that, no. there are reaching -- raging capitalist enterprises going on in authoritarian governments, countries with authoritarian governments. china is, an example. it's a one party system and ittarian government, is competing for asia's lee around the world. but i think china has some challenges because of its and the nature of risk-taking there and the nature of the partnerships required and some things. there is a certain limitation in it in the long run. emily: mark zuckerberg was recently photographed with a shot of his laptop. over the camera and tape over the microphone. what does that say about the state of cyber security in this world? cyber security: is a challenge. if you are not aware of what you are doing and saying and the can you have, a telephone
be a listening device as well as a communications device and a camera. and the camera can work different ways. people need to be aware. we are working very hard with countries to establish the norms and have rules of the road with respect to cyber. we made progress with china. we are still working at the implementation. it is a challenge, and we all in government are particularly sensitized and careful. mark: u.s. secretary of state john kerry speaking with "bloomberg west" anchor emily chang. vonnie: it's time for the bloomberg business flash, a look at some of the biggest news stories in the home -- stories. sales of new homes were down in may. they had been showing gradual improvement.
ofre's a change at the top the largest department store chain in the u.s., the ceo of macy's is giving up that job. he will remain executive chairman. the new ceo will be macy's current president. his job will be to carry out the turnaround that lundgren started. some european banks that lend money to new orleans gas industry are heading for the exits. g havesuch as hsbc and in either sold the loans they made to energy companies or are talking with potential buyers. stu energy companies in europe have fallen by more than 50% this year. that is your bloomberg business flash for this hour, mark. the european close. emily chang once again will talk with blackberry chief executive john chen on the company possibly does turning reports. u.k. citizens voting in a
referendum on the country's membership of the eu. u.k. law prevents us from reporting on voting or discussion and analysis of her referendum issues while polls are open. we will be following all the action of the results coming across the day of special coverage tomorrow. watch coverage of the results. starting with "with all due respect" at 5:00 p.m. eastern. ♪
in the german movie theater incident, according to the police. and according to mtv, the armed suspect has been killed by police. makernadian smartphone blackberry is slogging through its turnaround. the company posting a smaller first-quarter loss than clownedd, while sales her as software grows is a bright spot for the company, the blackberry chief executive is at the company's headquarters. he's joined by bloomberg's emily chang, who is of the global entrepreneurship meeting. emily: nice bump in the start this morning. -- stocks this morning. how do you get to that level of profitability? levelhow do i get to the -- you mean the new guidance we provided the reduce our loss? emily: exactly.
the modular business had gone really well. the modular business, 53%, which is about 50% a year ago. a software becomes a bigger part of our business, our margins continue to move up. it's a principal reason of why we could do a much better -- on the profit side. emily: you are adding software to the handset unit. how many funds do you need to sell to get to profitability for that unit by the third quarter? john: it's a little bit different. i'm taking a lot of our software and i'm licensing to device manufacturers, people not only make phones, they make other stuff electronic. in doing so, the margin changes
quite a bit. it is no longer how many hardware you sell. i talk about 3 million. if it's just being in hardware itself, 3 million will get us there. bet number doesn't have to free. the software effort, the handset selling software effort, is rather new. i just launched it internally no more than a month ago. it will take a little while to come into the picture. mily: you have two new phones coming. will be lower price phone be an all touchscreen phone? what details can you share? john: i haven't announced anything yet. i was careful to focus on the portfolio side. yes, i have two new phones planned. it will be lower and
all touchscreen, yes. numbersour smart phone keep dropping. people are worried about apple. you sold 500,000 phones. at what point are you going to say, we are going to stop making phones altogether? if you look at how we transition, it's a great question -- look how we transition in the last year, two years of that. we get out the manufacturing side of the equation. we now have a contract with manufacturing oem or odm. it is very much helping us to manage the balance sheets, de-risk everything. we are becoming a design house. on hardware, we are designing hardware. we don't make them anymore. then we take the software component that was in those
phones. we are also going to license it. we are really more into the i.t. business than into just making a device, but we do provide blackberry device without security, without technology, as an end product to the customer's. it's not really a consumer driven phone at this point. you will be able to get it anywhere. that is kind of the thinking, strategy behind it. microsoft recently buying linkedin. people saying that will spark a wave of m&a, especially enterprise m&a. how do you expect that to play out? john: in the last 12, 18 months we have bought 6 companies. we have good level of cash. we will generate cash flow
positive for the year. thet now i'm focusing on smaller, more adjacent to what we do, mostly in the software side of the equation. we will be looking at opportunities also. john, would you be blackberry?ell john: i'm a public company. there is a very good offer. i offer, to the shareholders, have a duty to look at it. i'm not looking to sell the company, but i'm looking to build value in the company and drove the company. from't stop other people wanting to talk to us. if it's real and good for our shareholders, we will take a serious look at it.
emily: i've got to ask every time just in case the answer changes. john chen joining us from black or a headquarters. ryanks so much -- blackber headquarters. thanks so much for joining us. expecting are president obama to deliver a statement on today's ruling on immigration from the supreme court just after 10:00. president obama's statement is scheduled for 11:45 eastern and we will bring it to you live as soon as it happens. mark: every single industry group on the stoxx 600 has risen today, led by banks. longest winning stretch since may 30. it's a five-day winning stretch, 7.5%. biggest since february 18. 620 billion euros of value has been created in the last five
days. we have some macro data today, growth in the eurozone's private data. it was driven by a slowdown in services activity, business expectations in that sector slid to the lowest level in almost a year. areats suggest that expansion this quarter will be around .3%. in the first quarter, growth in the eurozone was at .6%. i want to bring up mario draghi's favorite inflation games. i wanted to gauge where inflation is, according to the five-year -- this is inflation from the five-year starting in
five years. as you can see, we are up from the loans of a few weeks ago. we are at 1.41%. a couple of weeks ago the level hit 1.33%, the lowest on record. qe at thei announced beginning of last year, this gauge was at 1.66%. when draghi announced qe, his favorite inflation gauge has fallen. inflation in the euros and -- -- the only positive thing i can say about inflation is last january when draghi announced qe, inflation was .6 percent. it didn't include greek bonds in its qe program. should provide a significant improvement in economic sentiment.
it should set a positive tone for deposits, having increased stability and competence in the banking sector. this is the banking industry. censor this a bit more so you can see the bottom line. the greek banking industry has not done much since 2012. in 2007, that's when the ftse index hit an all-time record high. since then it has fallen by 99.3%. news forews was good the ecb on the great waiver. vonnie: let's look at the broader u.s. markets. 183 points there. 1%.s&p 500 is up the nasdaq is gaining 1.2%. we're also seeing drive in the 10-year yield.
gold futures down a tad. no real movement to speak of in gold. let's get more from the nasdaq in midtown manhattan. have a nice rally for the nasdaq, up 1.2% at session highs. micron shares up 9% on a very bullish upgrade. there could be 30% upside potential for the shares of micron. one stock that has done a big reversal on the day, netflix. higher by 1%. a broadband report shows amazon has been gaining ground. ilx's share of internet traffic dropped 2%.
amazon is small, but this is rising usage and a could be causing jitters. when we look at a two-year chart of netflix, we see lots of volatility. most recently we do have the stock trapping below buying support on concerns, perhaps around these internet reports. also, the company's upcoming reports in the july quarter, a will be interesting to see whether buyers can push the stock back up. if not, there could be downside ahead for shares of netflix despite today's's strength. vonnie: thanks. president obama to deliver a statement on today's ruling on immigration from the supreme court. that statement is scheduled for 11:45 eastern. the supreme court coming to a 4-4 indecision, saying the president's deferred action on immigration is basically not
going to go ahead. the lower court's ruling stands. let's go back to the 2016 global entrepreneurship summit in stanford, california. emily chang is joined by the cowboy ventures founder. emily: the founder of cable a ventures, so happy to have you here today. you are perhaps now best known unicorn.ng the term 2013 you wrote a blog post where you are referred to billion dollar plus companies as unicorns. it has taken off like a rocket. what is your reaction to how pervasive the term has become? >> i don't know, to be honest. hopefully i will become known -- for being a great investor and great backer of entrepreneurs.
i think building the super awesome tech companies that last really built to last is special, and understanding what's under the hood in terms of who the founders were, how they met, what they did beforehand, all the things around the making of is what was the genesis of the unicorn idea. special andvery very rare. you have a lot of entrepreneurs out there seeking that $1 billion valuation. a lot of people are wondering how many of those companies have the numbers to stand it up. of 200 plus unicorns out there right now, how many will survive? >> i think most of them will survive. years, we have been seeing the multiples at which people are investing have
been accelerating. deceleration is a of multiples in terms of valuations happening right now and that will probably continue for another year. it doesn't mean that the technology or renovation or the markets are terms these companies are going after is getting smaller. what is happening right now is a reflection on valuations. --look at airbnb and uber what they do is really important and really valuable and customers love the product. emily: do you think we are beyond peak unicorn? last year was kind of a local maxima. we may see a decline in the next year or two. if we look 10 years from now, there will be more. emily: you left kleiner perkins a few years ago.
what has venture funding been like for you? >> so much better than expected. i loved working at kleiner perkins. overtime andbigger i think being at one place for a long time -- i was therefore 13 years -- you tend to become -- i was becoming a little bit more jaded, a little bit more like, we ask that question six years ago, whippersnapper. to put yourself in a less comfortable situation, and see it as an opportunity -- it's a better fit for me, it turns out, and the chance to be entrepreneurial and start something that is new and smaller, focus on seed, it is been a fantastic experience. emily: everybody wants to be a seed investor these days. >> it's a hot thing.
being a seed investor -- it's picking, being able to identify, see great people and ideas. the helping part, post-investment is important. we are seeing a bit of a hangover in the seed market right now where there has been a lot of seed money but not a lot of experienced seed money and not a lot of experienced seed help. all these companies lined up to race the series a, many of which have not gotten good guidance, have not anticipated, what are the things they need to accomplish to be attractive as a company and a founding team to top-quality series a investors, and that's what they call the crunch. we've definitely seen that people continue to see that. that is rolling into series b crunch. emily: you have been outspoken in women in -- about women in vc and the importance of diversity. i'm wondering how much progress
is actually been made. with all due respect to sir mike, because he's a legend in venture capital -- we are an all-female firm. it takes effort. i have a commitment and i'm going to try really hard to add a guy to our team. the numbers aren't getting better. it's a great thing we are talking about it and a knology net. 10 years ago in venture capital if i mentioned it to someone outside of a meeting that i had not said in a meeting and i said to my male partners -- that's a great idea. why didn't you say it in the meeting. that was the depth of the conversation about being female in venture capital. now we are acknowledging,
there's lots of data that shows there are different personality types and you get better results when you have more personality types and more diversity on a team. how do we figure out how to create the conditions so not just type a extroverts, caucasian males are comfortable and have the opportunity to thrive on teams? the numbers are not reflecting the commitment and intent to make environments more inclusive. emily: so great to have you here. looking hard to find a man. vonnie, back to you. vonnie: thanks. that is bloombergs emily chang with the cowboy ventures founder. we are waiting on the president. he is speaking at 11:45. u.k. citizens are today voting on a referendum of the country's membership in the eu. fromlaw prevents us reporting on voting or
discussion and analysis of referendum issues while polls are open, but we will be following all the action as results come. special coverage starts at 5:00 p.m. eastern. union workers are marching to protest labor reforms being pushed by president francois hollande. the march,d to ban concerned that protests would turn violent like a demonstration did last week, and said protesters will march along a shorter route than originally planned. german chancellor angela merkel signaling diplomacy and the are needed when dealing with russia. boost was pledging to defense spending in eastern europe. the alliance members have led to gradually increase defense spending to 2% of gdp. chinese state media say a powerful tornado has killed 51 people and destroyed a large number of buildings in an eastern province. the tornado formed, large
numbers of people have been injured and roads are blocked. bernie sanders is thinking about here. where we go from the democrats campaign says that's the theme of his town hall and news conference today in new york. global news 24 hours a day, powered by more than 2600 journalists and in more than 120 countries. vonnie: just a reminder, we're expecting president obama to deliver a statement in a moment now, the ruling this morning from the supreme court on immigration will be the topic of that statement. this is a live shot of the
capitol building in washington. spiegel paul -- speaker paul ryan holding his weekly news conference. he is criticizing democrats, saying this is a stunt under he won't allow stunts like this. he says they need to maintain decorum in the u.s. house and some democrats trying to get on tv to pass laws. follow all of this along on your bloomberg at live go. we have confirmation that an armed man has been shot dead by police in the german town of after an incident earlier that caused dozens of people to flee a cinema complex. no one was injured by the assailant. police confirmed the suspect shooting during a televised statement.
at least 25 people were hit during pepper spray during the police. with the masked man fled the cinema complex. eyewitnesses reported shots were fired. police cordoned off the area and special commanders were deployed to assist. an armed man has been shot dead afterice in viernheim this incident that caused dozens of people to clear cinema complex, and no one was injured by the man during the incident. time in new york, 11:46. you're watching the european close. ♪
turnaround is working at britain's biggest grocery chain, reporting a second straight quarter of sales growth in the u.k. that's a first time that happened in five years. the tesco chief executive has been trying to win back unhappy shoppers by offering lower prices and better service trade u.s. prosecutors are investigating a potential tax evasion case. of whetherquestion credits we may have helped clients in israel evade u.s. taxes. the bank says it taste i've employees on leave while it is investigating. the national hockey league is going all in on las vegas. the league will expand on the gambling mecca for the season that begins in fall 2017. billionaire businessman will pay a 500 million dollars expansion fee, the first time one of the major u.s. -- put a
team in las vegas. that is the latest bloomberg business flash. vonnie? vonnie: let's get back to our breaking news on those supreme court decision rulings today. the latest on a fascinating 4-4 decision on the president obama immigration executive order which means the fate of at least 4 million undocumented immigrants is pretty much unknown. >> that's right. the president's policy would have let these are million people apply for deferred deportation for 3 years, and let them seek work permits. the program appears to be dead for the duration of the obama presidency. vonnie: what were we hoping in terms of the supreme court? obviously a split decision. where we really expecting that? >> that was the way the argument
seemed hurried it seemed like there was an ideological divide on the court. afterurt is shorthanded justice and tone and shkreli a -- antonin scalia's death. at least until there is a nice justice, that is what will be the law. vonnie: president obama will be speaking and presumably addressing this topic in a few moments. back now to ago lower court for determination on the merits. this is only an injunction the supreme court was deciding on. >> that's true. keep in mind -- we can go back, there can be a trial, a ruling on a permanent basis. either donald trump will be president and resend the policy or hillary clinton will become
president and she may put in place her own policy or something similar. also more thanld likely have a chance to fill that ninth seat on the court and potentially tip the balance. vonnie: this let's set a precedent for other executive orders? >> it doesn't. it does affirm the appeals court so in texas and a couple other states, that is the law of the land but it doesn't necessarily apply nationwide. a few minutes away from that statement by the president. a surprise victory to an affirmative action case, and effectively found the decision that had been made by the lower court should be upheld. explain what that was and why that is so important. >> this is a case about the university of texas's admissions policy.
the condition was that the university of texas would lose lose, itsative -- affirmative action policy would be thrown out. vonnie: let's listen to president obama from the white house. pres. obama: in the affirmative action case, i'm pleased the supreme court upheld the basic notion that diversity is an important value in our society in this country should provide a high-quality education to all of our young people, regardless of their background. we are not a country that butantees people outcomes, we do strive to provide an equal shot to everybody and that is what is upheld today. americahe reasons why is such a diverse and inclusive nation is because we are a nation of immigrants. our founders conceived of this country as a refuge for the world. for more than 2 centuries, welcoming wave after wave of immigrants has kept us youthful and dynamic and entrepreneurial.
it has shaped our character. decades now, our immigration system, everyone acknowledges, has been broken. the fact the supreme court was not able to issue a decision today doesn't just set the system back even further, it takes us further from the country we aspire to be. basic facts that sometimes get lost in what can be an emotional debate, since i took office we have deployed more border agents and technology to our southern border than ever before. has helped cut illegal border crossings to their lowest levels since the 1970's. paved the way for comprehensive immigration reform. as many of you know, it almost did it nearly 70 democrats and republicans in the senate came together to pass a smart,
commonsense bill that would have double the border patrol and offered undocumented immigrants a pathway to earn citizenship if they paid a fine, paid their taxes, and played by the rules. inortunately, republicans the house of representatives refused to allow a simple yes or no vote on that will. i was left with little choice but to take steps within my existing authority to make our immigration system smarter, fairer, and more just. four years ago we announced that those that are our lowest priorities for enforcement, diligent, patriotic young dreamers who grew up pledging allegiance to our flag should be able to apply to work here and study here and pay their taxes here. than 730,000 lives have been changed as a result. these are students, teachers, doctors, lawyers, americans in every way but on paper.
today's decision does not affect this policy. it does not affect the existing dreamers. two years ago, we announced a similar expanded approach for others you are also low priorities for enforcement great if you been in america for more than 5 years with children who are american citizens or legal residents, you too can come forward, get right with the law, and work in this country temporarily without fear of deportation. both were the kinds of actions taken by republican and democratic presidents over the last 1/2 century. neither granted anybody a free pass. all they did was focus our resources on the highest ird's convicted criminals, recent and threats to,
our national security. as disappointing as it was to be challenged for taking the kind of action that other administrations have taken, the country was looking to the supreme court to resolve the important legal questions raised in this case. today the supreme court was unable to reach a decision. this is part of the consequence of the republican failure so far to get a fair hearing to mr. merrick garland, my nominee to the supreme court. set ofs the expanded common sense deferred action policies, announced two years at this't go forward stage until there is a nice justice on the court to break the tie. people will be disappointed today, but it's important to understand what today means. the deferred action policy that is been in place for the last 4 years is not affected by this rule. enforcement priorities developed by my administration are not affected by this ruling. this means that people that might have benefited from the
expanded deferred action , long-term residents raising children who are americans or legal residents, they will remain low priorities for enforcement as long as you have not committed a crime. but today's decision is frustrating to those who seek to grow our economy and bring a rationality to our immigration system and allow people to come .ut of the shadows i think it is heartbreaking for the millions of immigrants who made their lives here, who have raised families here, who hope for the opportunity to work, pay taxes, serve in our military. where do we go from here?
most americans, including business leaders, state leaders, and law enforcement, democrats, republicans, and independents still agree that the single best way to solve this problem is by working together to pass common sense, bipartisan immigration reform. that is obviously not going to happen during the remainder of this congress. nor do we have a congress that is willing to do even its most a sick of jobs under the constitution, -- basic of jobs under the constitution, which is to consider nominations. republicans in congress are willfully presenting the supreme court from being fully staffed and functioning as our founders intended. today's situation underscores the degree to which the court is not able to function the way it is supposed to. the court's inability to reach a is a veryn this case clear reminder of why it is so important for the supreme court
to have a full bench. for more than 40 years, there has been an average of just over two months between a nomination and hearing. i nominated judge merrick garland to the supreme court more than 3 months ago. refusepublicans so far to even meet with him. they are allowing partisan politics to jeopardize something as fundamental as the impartiality and integrity of our justice system. america should not let it stand. this is an election year, and during election years, politicians tend to use the immigration issues to scare people with words like amnesty, in hopes that it will get them votes. keep in mind that millions of us, myself included, go back generations in this country. ancestors put in the painstaking efforts to become citizens. we don't like the notion that anyone might get a free pass to americanci