tv Bloomberg Markets Bloomberg June 23, 2016 3:00pm-4:01pm EDT
from bloomberg world headquarters, good afternoon, i'm vonnie quinn. david: is where we are watching. stocks are higher, dow is up triple digits. the s&p 500 within 1.2% of its record. need a tesla is going to lot of batteries to be its production goals, but it is working with china to find the materials it needs. cannot get enough? strike will beof here to talk about the financial tech industry. away from are moments the close of trading in the u.s.. let's go to the market desk and get the update from ramy inocencio. toy: stocks are raking back session highs. 1% gains for the dow and the s&p 500, nasdaq up even higher. ..25% there
let's go check with the s&p. we have been flying pretty high for the most part for the whole entire day. if we can bring that up right now, there we are. i started near session lows, but they were in positive territory. we hit the session high just about at the noon mark. 3:00. just off of that, let's take a look at what is happening in my bloomberg. we see the imap function, what is happening with the snp -- s&p 500's 10 sectors. it is brought across the board, financials up higher 1.7%. materials falling closely at 1.5% -- following mostly at 1.5% up. oil and natural gas are rising. utilities there a flat line. they had been lower 10 numbers down, but they are flat right now. let's take a look what is happening with oil and energy.
the energy sector rising. oil of its own session highs. crude is up 1.8%. it is up two days in a row. this is the highest in the past two weeks. the eia saying crude production for the week has been up 14 of the past 15 weeks. off of that, there is a bit of a knock on effect in terms of the biggest energy producers. let's look at the energy percent gainers. transocean up 5%. that is one of the biggest in the past few weeks. williams company 3.5% up, marathon petroleum the highest up in the past 10 days. vonnie: this is partially because of the dollar, stronger dollar. what about financials? ramy: financials are the biggest gainers, up 1.5%. because of that, let's take a
look at what is happening in the bloomberg dollars spot. rising, that has an inverse relationship with the dollar, the bloomberg dollar 1.25%.s down 1.5% -- it is near the highs of this trading session. let's take a look at what is happening with financials, the many theme. some of the biggest point gainers are citigroup, jp morgan as well as wells fargo. citigroup up 4%. i took a quick look in terms of the ratio of ups and downs. one stock is up, one stock is down. positive. in take a look at treasuries. is now up0 year higher in terms of deals, five basis points especially because of this risk on environment. generally, a good rally. david: thank you very much.
let's look at the first word news. mark crumpton has that. u.k. citizens voting today in a referendum on the country's membership in the european union. prime minister david cameron casting ballots. u.k. law prevents us from reporting on voting or discussion and analysis of referendum issues while the polls are open. we'll be following the voting as results come in. special coverage at 5:00 p.m. new york time, 10 a clock p.m. in london. in onent obama says it is disputable he wants banking and financial safer then when he entered office. in an exclusive interview, he also said reduction in banking profits is ultimately good for the financial sector. president obama: banking profits are not as outsized as they were , but i don't consider that a bad thing. most americans don't either. they are still making a profit, a profit hasere is
been eliminated, which is good for the long-term for the financial sector. mark: the complete interview with president obama speaking with editor in chief john mikel, megan murphy, and bloomberg businessweek editor in chief ellen pollock appears in the latest edition of bloomberg businessweek. you can find it on the website at bloomberg.com. puerto rico has $2 billion in bond payments due in eight days. the island governor says it will default on its general obligations. even if services are halted. the governor made his remarks today in washington, where he is lobbying for congressional approval of legislation that would set up a framework to restructure puerto rico $70 billion debt. the u.s. senate will take up the measure next week. in a major victory for supporters of affirmative action, supreme court upheld the
right of the university of texas to consider race in its admissions process. againsted for-three, abigail fisher, a white woman who said she suffered his termination when she was rejected by the school in 2008. excused herself because of previous work on the case when she was the u.s. solicitor general. a baltimore cop facing serious charges in the 2013 death of freddie gray has been found not guilty. he opted for a bench trial instead of one by jury. he drove the van in which the 25-year-old gray suffered a spinal injury. so far, none of the six officers, three officers who face trial had been convicted. six officers in all face charges in connection with the case. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg.
david: let's go back to the markets and the state of the economy. we have achieved market strategist at oppenheimer. good to talk to you again. i want to ask you about the employment report from the labor department, 30,000 fewer apply for jobs then was forecasted. with the calculus the fed on it the capare you -- greater the fed had on it stable, are you concerned? >> the employment stateside is invariably we are going to get to a point where we are going to see upside pressure on wages, but we think it will be relatively mild. the wage data as well as employment data, particularly in climate data is subject to volatility. we will experience both good numbers and bad going forward ineligible he. the must abort and thing to consider is the fact that as we , fewer people are losing
jobs, or people are getting jobs . because of technology, much of that will be reflected in you six numbers as opposed to the headline number as many people will likely be hired on a part-time basis. before,s we have said it is robotics on the factory floor, algorithms in the offices , lower barriers to entry for all types of business, from mom and pops to multinational, and the process of globalization. competitive environment, but that doesn't mean there are not winners, and the market is a knology. vonnie: how strong is it really? >> how strong is the rally? isave got to say the rally remarkably strong considering what we have been through lately
on the global picture, disruptions stateside, the fed having difficulty reading the numbers on a month-to-month a picture toing the markets in terms of where the interest-rate policy is going. but overall, we have to say the market is looking at things and saying interest rate are going very, very slowly. that will give opportunity to the economy to grow. we think this year, beating the eighth year in december of near zero interest rates protocol, like we need -- like we collect, people realize equities have a functionality in terms of paying dividends with potential for total return from capital appreciation. and the cyclical equities are going to do nicely. david: you noted in several notes, we had investors on the
sidelines. what will bring them back? >> we really think it is the heat of the fire. if you have goals, it is hard to traditionalen many savings accounts will pay you overd $10 for an amount $100,000 held for eight or nine months. people are going to have to move to a riskier asset or traditionally riskier assets, because the real risk is to growth objectives if you are living with a short-term fixed income in some places around the 10 trillion dollars. negative interest rates and stateside, extremely low interest rates. 1% in 272, it will take you 72 years to double your money. 72, it will take you 72
years to double your money. vonnie: stephanie use the term supernova. would you use that term? >> i am not getting a clear signal on your microphone. david: the term supernova. would you use that as well? >> i don't think we have a supernova-type market, because that tends to blowout. i am looking for a market that is capable to climb walls of worry, that will grind higher and have, occasionally, have days where there is rock and roll. i am not looking for animal spirits to come back for quite a while. vonnie: thank you. chief market strategist at oppenheimer and company. david: we will take you out to the 2016 global entrepreneurship summit in stanford, california. we find it on the former facebook executive is using technology to create global change. ♪
♪ david: this is "bloomberg markets." an experienced executive of facebook, john t a is no stranger to capital valley. he is turning his head to venture capitals the to create -- printer capitalism to create social change. we have emily chang. emily: great to have you. chamath: great to be here. emily: you always have opinions, i am excited to hear your of -- your opinions on the latest
activity. let's start with microsoft and linked in. great deal? chamath: it is good for both sides. for microsoft, the obvious things it does it allows them to compete better against salesforce. the second thing is, and extend the half-life of outlook. if you think about it integrating people's profiles, profile data into that usability, that become slightly more useful than it is today. it is why it is great for microsoft. for linkedin, it gives them raise to operate. trading them the past quarter, they demonstrate how fickle they were. and then what is great for the that jeff is the presumptive ceo to calm in 10 years if he decides to stay. white is great for silicon valley is jeff is smart, he is an aggressive guy. emily: do you think jeff good replace? chamath: and five or 10 years
when fox deal is done, jeff will be early and ready to do this. if you give him a half trillion dollars market company and 100 billion of cash, you could see him do great things for himself and microsoft and the ecosystem of silicon valley. emily: linkedin was one of the biggest offenders for paying employees and not accounting for it. is that ok? chamath: i think what is happening, the short answer is no. companies like amazon and facebook who are now moving conversation to the primary metrics that they report are going to take the band-aid off and force every company to do the same thing. so the post that i wrote was about making sure onto printers and ceos and the investor classes, who are not intelligent , recognize this is a huge issue and what creates a viable public company. now companies like facebook will force-feed you, and you see
companies like linkedin will compensate, the ceos and founders will have to internalize had why pay employees fairly, but how do i report them in a transparent, obvious way everybody? emily: what does it mean for m&a? think the reality is if you tell an entrepreneur, your goals ultimately, when you take the bravado of impact has driven away, you make more money than you spend, many have a quizzical look on their faces. those with a quizzical look and don't really understand the economics, profitability, a sustainable company that spends less than it makes, you will have to sell. so going through and branding an idea is not necessarily the end-all, be-all. wouldle was that octa also run a dual track m&a process. if you are not truly sure of the
long-term economics of your business, m&a is a fine outcome because it will allow you to and rewardiness those employees who have been committing years and years of their lives to year. emily: 10 twitter, along of the company? that can twitter, long as the company? chamath: if they find some amount of ability to stop decaying user growth. the biggest problem is facebook newsfeed has become a newsfeed, which is showing the algorithm version of twitter's real-time feed. so the incremental dollars easier spent on facebook then twitter. so that is downward pressure, basically driving some very difficult environments for them to meet and beat their revenue guidance. even if the growth is sticking to itself, the revenue growth is the new shoe to drop. so that is pressure for the ceo
and management. emily: you thought ceos -- you thought amazon to be a $3 trillion company. why that and not apple? chamath: it is the safest company where i know next year, next decade, next day, it is slightly easier than today. emily: more than facebook? chamath: facebook has to deal with snapchat. they have to deal with whatever company hasn't been built. amazon does not have to compete with anybody. they have secular tailwinds, pushing them forward naturally. so now they are coming ingredients for every company. when they become so ingrained in the dna of every other companies pany's success, they are not defined by the success or failure but by the rising tide. emily: where is apple going? chamath: down. they have abdicated
responsibility for products in a year or 18 month cycle, it is a realization they don't have enough in the pipeline to satisfy consumer need to drive an upgrade cycle. now you have two things compounding them negatively. the first is unit prices of apple's products keep going up. google and android go down, but the gap is getting smaller. the smallest it has ever been. you cannot distinguish the fantastic phone from an iphone anymore. and you are updating less and less often. it is a troubling set of dynamics if they don't figure out a new product. socialfounder of the capital partnership, great to have you. david: emily chang out there at the entrepreneurship summit. later this hour, we go back to emily interviewing john carlson of strike. vonnie: making money on emerging markets, strategies looking six months down the road. ♪
♪ marketshis is bloomberg , i am david gura. is time for the insight with ramy inocencio. ramy: we have the chief market strategist at bull's-eye options, joining me from the cvo week in chicago. very good to speak with you. markets are up, session highs, seeing a lot of rallying and optimism. we are not allowed to talk about the u.k. and the referendum because of their laws, so let's avoid that. i want to push ahead what might be the next milestone event you are looking ahead to to see what to get tape -- what could dictate the markets. >> the next event, the earnings obviously. we have two weeks, so it is important to talk about what the
market didn't do as opposed to what it did. in the last week we saw a spike since vix, the highest february. and then, in reverse. we had a reversal of volatility, gold, new highs, and personal treasuries. that is optimism in the marketplace, and you have got to trust what the tape tells you. that is a positive. market selloff last week and they ended up going 1%. there is more this week. ramy: you are looking at eem, and emerging shares market, it is up 1.6% for the year. why are you looking at this? i understand you are in colombia recently? of buildings and it got me thinking emerging markets really have gotten beaten down and overly so in the last year because of that dollar strength. people were concerned about the dollar strengthening next year, raise rates.
that does not look like it will happen anytime soon. we have seen in stabilization in and $36ding between $32 since last october. it is a breakup of targets moving up to $40. ramy: let's go to your trade. it was up 15% -- down, 15%. is there more upside this year, or will it pull back? >> it has started to move higher. we are still down 18% in the last 52 weeks. 40 was a breakout for the payment from 2001 two 2015. using an option in the money call in set of buying the etf, the $30 call right now is trading for about 5.5 percent, so it has good things to happen with the january call option. at that.believe it thank you for your thoughts on
let's check on the headlines this afternoon. mark crumpton is in the newsroom. mark: citizens voted today in a referendum on the country's mentorship in the european union. david cameron is among those casting ballots u.k. law prevents us am reporting on voting and this session and analysis of referendum issues while bullet holes are we will as theyll of the result come in. special coverage begins at 5:00 p.m. new york time. the plan would have kept millions from leading illegally in the united states from being deported. justices deadlocked for-four, leaving intact a lower court ruling that the president overstepped his of release. killsecision effectively the plan for the rest of his presidency. president obama: i begins heartbreaking for the millions of immigrants who made their lives here and raise families here and hope for the opportunity to work and pay
taxes and serve in our military in an open way. clinton called this unacceptable and believes the president acted well within his legal authority. donald trump tweeted, the supreme court has kept us safe from executive amnesty for now. hillary has pledged to expand it, taking jobs from his vatican african-american workers. in efforts to craft a new compromise ended up blocking suspected terrorist from buying guns has altered in the u.s. senate. susan collins of maine survived vote -- and amendment survived the test vote but fell short of what was needed for an advancement. they also voted to kill a republican alternative i ron johnson who is they thing a tough reelection fight. the result left the chamber with
the globe. you.: thank it is great to have you. you started your company here. this is about entrepreneurship or do you perceive a day when he was not leave ireland to silicon valley to start looking? >> i hope so. if you look at what -- i located, we have first move to the united states for college and while here, based on some experience, starting an online business, that is where we have the idea and started billing desperately us. i do not think people need to move to new countries to start a business. imo will that will be the case in the future. we are starting to see the trend for a lot of most successful in internet technology businesses that are starting to crop up by the united dates.
we just saw spotify stockholm raising a large amount. being bought by $.10 for $8 billion. you can see momentum there. is very recent product much in the problem in that we wanted to give entrepreneurs, no matter where they are in the world, all the tools they need to start an internet business. try to start today, what would happen? >> the point where we could start today. silicon valley does have -- it is a different kind of place and in particular, there is a utah volume try to start today, what would happen? of technology talents and ecosystems here. for us, a lot of our customers were here. we are increasingly seeing this i came here, i happened to run into entrepreneurs based in palestine
here they are running a software company incorporated in the u.s. they are selling to a global customer. emily: he does not letter where they are based. the president is speaking tomorrow. what more do you want from the government? what does the government need to do? >> i think in the u.s., we are doing a good job. a good place for you to be running a startup, in silicon valley in particular. i travel to a lot of other companies and meet a lot of entrepreneurs there. how can it be more like the u.s.? emily: paypal became an independent company now. formidable competitor for a strike?
>> i do not think things were different than they were two years ago. is forng businesses want running their online business. people do not just use it for accepting payments. billing, for all of these things. that is what we all record nice people needing. i think the other challenge for paypal is the mode of going to paypal and paying for something, it is one that i think there is less need for. andenter your credit card never have to again. of course, we saw a earlier this month apple announcing apple pay on the web on desktop and mobile. hugeink that will be a
shift and we have already seen an impact. toy are making it simpler buy from a business than it was before. you have to enter all your data manually. emily: it is interesting, talking down and about how disappointed he is. it is a sentiment you disagree with? welcome to believe that. over the time we have been working with apple, we have been a launch partner on a number of the apple announcements, including this one. at what apple does strikingly well, they enter were not inhey before and they face a lot of skepticism and they come at it with a customer first perspective on what to people actually want and how should the experience work, and the only thing they care about, i think
they have done very well because of that when the iphone came out , you had all the skeptics. he cannot just walked in here producing a phone. a very customer first perspective. emily: what about amazon? >> a lot of amazon policies fromsses come historically the one click buy in. thee is basically making buying experience available to any seller. in particular to new businesses just getting off the ground, you do not have to accumulate this vast account. you have a nice experience from day one. part of our mission is arming upstarts and giving the new business on the world stage. emily: it did cause the first silicon valley tech ipo in a
long time. is that something you are watching and does it change your view on whether it should go public? impressedalways been with them as a business and i think what they did extremely well is they took something that was very complex to do with it you're dealing with multiple different network partners, very cumbersome to work, and they made a few lines of code to start building connected systems. is there is aized part of a broader growth market where more people were having these applications. their winning in a growing market. happy as a private company. a lot of things we talk about like building the platform for
internet businesses and in particular, making it easy to access money from anyone everywhere and having global reach, this is a long-term problem for us. we have been working on this for the last five years. we will work on it for the next 10 years at least and we add partnerships and support last year. support in europe this year and future stuff. take a very long-term approach to these problems. all right. thank you so much for joining us. i will send it back to you. coming up next, nine minutes away from the close of trading. here to check on your major averages, we are seeing stocks climb to session highs and the s&p is extending their gains by 1.2%. 200 rally on the dow. ♪
>> let's give you a market roundup. we saw a big leg up in the last 10 minutes or so but it really started globally in a share. if you look at the all country you can really see the movement there. we opened higher and never moved back. when europe opened for trading, you see a leg up and in the middle of the screen, that is limited u.s. open up for trading. the index is now at a two-week high. joe: the stock market is rallying after the east be granted waiver. banks would be able to use more debt for collateral -- collateral. ongoingas been an
bailout, limited the ability of banks for emergency funding. you can see it went to a low back in february like anything else. itlowing a little lately but is spiking and index is up. alix: this energy company at one point following the most in three months. what happened, it basically had a debt exchange of $1 billion in debt. some of those new notes will be converted in equities. this is what oil companies are doing to stay alive. curb that near-term financial risk for payment issue and it is a distressed debt company. we are seeing more and more of these come down the pike. scarlet: we see oil companies at a level where they do not wonder. banks, the biggest
rally since mid-may. 2%.whole sector up goldman adding 28 points from the dow. stress test results in a half hour but this is leading the chart on the risk day on rally. scarlet: there is so much skepticism on the european banks. you look at the short interest on the bank, it is remarkable. on wednesdaynding as opposed to 2.3% a week earlier. that is a big move up for that bank. pay: definitely good to attention to. that wraps it up for bloomberg markets. closing eyes of the session. we are four minutes away from the close of trading. ♪
closing bell. ♪ around sessions highs. the best day and a month. joe: but the question is -- "what'd you miss?" scarlet: we get results of the bank said at this hour. we break down how banks and their capital levels there. joe: and does goal have a role in the economy -- does gold have a role in the economy. scarlet: and cutting the company's writing -- rating. and why this movie should raise alarm. u.k. citizens are voting in the referendum in their membership for the european union. u.k. law prevents us from reporting on discussing, and analysis while polls are open, but we will be following all of the action is results come across at 5