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tv   Bloomberg Markets  Bloomberg  July 12, 2016 2:00pm-3:01pm EDT

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david: from bloomberg world had courtesan new york, i'm just world headquarters -- from bloomberg world headquarters in new york, i'm david gura. hillary clinton gets a supporter and former rival bernie sanders. can he help excite her campaign? donald trump may be close to selecting a bp. vp.a vonnie: just a few moments, president obama is expected to memorialize the slain police officers in last week's shooting there in dallas. david: let's head to the markets desk where julie hyman is looking at amazon on a day we are marking my prime day for
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amazon. --ie: amazons itself created amazon's self-created holiday. according to channel advisor, the 2016 sales on prime day are similar to what we saw in 2015. not changedad been much on the day. we will get more details on the numbers later in the day. based on the pace of buying so far, channel advisor does a indicate the u.k. that prime day cells were up 11% as of noon. -- prime day sales were up 11% as of noon. aazon aside, it has been
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strong day. the s&p and now on track for record closes. the nasdaq has turned positive for the year. this action has continued to send valuations of the s&p 500 higher. this is the price-to-earnings ratio of the s&p, going all the way back to the 1950's. ,he green line is the average 16.5. as we approach 20 here, we are trading well of love that's well above those levels. -- we are trading well above those levels. we see a rally in energy, southwestern, freeport copper and gold and chesapeake energy higher. outcome coming up with earnings that beat estimates because of products business. lcoa.
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shares of 5% today. -- shares up 5% today. weaker demand for u.s. treasuries. a $20 billion option -- after we got the results, we saw a bit of a down take in prices ended up -- $20 billion auction. results, we saw take in prices and an uptick in yields. matt: president obama -- mark: president obama is in dallas,
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texas. he will be got a memorial service for the five police officers that were ambushed last week. they're coming you see the president and mrs. obama joined by former president george bush. the president will also meet with the families of the victims. -- there, you can see the president and mrs. obama joined by former president george bush. the president considers the five aths a racially motivated hate crime. senator sanders officially endorses hillary clinton. >> she will be the democratic nominee for president. [applause] do everythingd to
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i can to make certain she will be the next president of the united states. from there was reaction donald trump. his campaign released a statement criticizing senator sanders saying "the candidate who ran against special interests is endorsing the candidate who embody special interests. ." the dean of the fletcher school of law and diplomacy at tufts university served as the former nato supreme allied commander -- the clinton campaign declined requests for comment. eu finance ministers have a message for the incoming prime minister. speed up your exit from the european union. britishissioner says a
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conservative party was fast -- that should speed up the brexit process. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. david: as we have been reporting, stocks are climbing for a third day. alcoa kicks off earning season. the s&p 500 reached an all-time , the benchmark set to close out the year. i want to bring in tracie mcmillion. great to talk to you. ,efore we get into volatility let me ask you about the effect here of that referendum in the u.k. on u.s. markets. what you make of how quickly that has happened? tracie: they definitely have been very quickly, more quickly
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than people anticipated. we anticipate most of the effect will be in the u.k. with more affect in the euro zone less of an impact here in the u.s. you are encouraging investors to have a long-term outlook, but how can we have a long-term outlook with yields continuing to climb? we are suggesting you take a look at your portfolio and your time horizon. if you have a short-term time ofizon, perhaps an element cash in your portfolio is appropriate with shorter-term bonds. if you have a more extended time , looking to buy a house in three to five years and some , some bonds and some equities in that portfolio would
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be a appropriate. -- would be appropriate. if you are retired and you've , your portfolio should be a bit different. there, you may want to have a bit of cash in the portfolio, some assets you can convert to are and some assets that going to grow for you over that period of time. but let brexit impact you are holdings to where you are making constant changes -- don't let things like brings it impact your holdings to where you are making constant changes. david: it seems a lot of people have moved on from brexit. are we supplanting one risk with another?
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as we progress through the actual exit of the u.k. from the eurozone, we will encounter where there is more uncertainty and more question marks in the minds of mr.'s. -- of investors. process,e through that concerns will arise again. we do need to be prepared for that volatility within the eurozone market, the u.k. market and some residual impact in the u.s. as we move into election season riodse u.s., we may have pe of uncertainty there. it's possible we could have some surprise here. that could create more
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volatility in the market. whenever there is something unexpected that goes against the consensus, that's when we start to see the gyration. yields withou think higher dividends are attractive? where might we find some space left? tracie: investors are looking for yields in these markets. the reason dividend paying stocks have been the -- we continue to like the asset class for their capital appreciation potential as well as that income component that you get from reads. david: in light of what happened , as you look ahead to november in you are positioning yourself and your portfolio, what are some lessons learned from the way you
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?osition in the u.k. vote tracie: if you have that , arter-term time horizon larger percentage of cash holdings would be appropriate. if you have a longer time horizon, these types of events generally work themselves out in a relatively short time. david: that is tracie mcmillion from wells fargo. still ahead, we are waiting remarks from president obama live in dallas. the mayor of dallas speaking right now. we are looking at a live shot of that service right now from the symphony hall in dallas. this is bloomberg. ♪
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david: this is "bloomberg markets." vonnie: time for our latest bloomberg business flash. david: the midstream oil and gas y near a deal -- vonnie: airbus has left boeing in the dust. they landed a $12.6 billion jetliner deal from air asia. the 121 ordersed at boeing. david: one of hollywood's top
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executives is throwing his support behind los angeles to host the 2024 summer olympics. bob eiger is now on board. says he wase recruited for a vice-chairman .osition a have been reporting, bernie sanders has thrown his support behind hillary clinton. it happened at a rally in new hampshire. for analysis, i want to bring in jennifer jacobs in washington. we see a real deficit for donald trump when it comes to college-educated white voters. how worried about it is the campaign? jennifer: it is a really big deficit. amongst white college-educated
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voters, it they are a group that republicans have won since 1982. hillary clinton is up by 15 points. why does that matter? they are a third of the electorate. it will help in swing states were college-educated voters are particularly dominant in the boating full. -- in the voting pool. states like virginia, colorado. vonnie: trouble be hoping that cleveland helps in his effort to win over some of those voters. what is it like out there right now? jennifer: the big story is unity. and the republicans come together?
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bernie sanders endorsement today has interesting timing. democrats are sticking with hillary. republicans are still doing some soul-searching. everywhere i go, the delegates are talking about donald trump. people are just talking about how we bring everyone together. an interesting contrast with hillary clinton getting all the groups that supported bernie sanders. moveon.org and democracy for america. we saw that happening on the stage in new hampshire couple of hours ago. bernie sanders pledging his support -- how important was this going forward? that bernieortant sanders and/or seller clinton in terms of getting the base together and taking on donald trump. endorse hillary clinton.
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out foranders has held over a month. the clinton campaign has been waiting patiently for this moment. hammett that's happened. n important moment for them. it was a full throated endorsement. withe: we were speaking megan murphy about how full throated his endorsement would be. giveuch will clinton bernie sanders in terms of platform pledges? the big concession was in the platform. democraticogressive
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platform in the party's history. criticizing wall street greed and recklessness. darius financial reform laws to crack down -- various financial -- he laws to crack down can say i've changed the democratic party. backing the clinton campaign's general election, he did not get much out of that. that is the big debate happening right now. did he wait too long to endorse her? david: there's a lot of conversation about who the vice presidential picks are going to be. a decision is closer with the trump campaign. who is rumored to be in the league right now? -- the lead right now? he texted yesterday that he
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would be announcing his decision very soon. we are all braced for an announcement at any time. he likes to have that element of surprise. he is in indiana with the indiana governor. mike pence is doing a rally with him. together, their wives got together. definitely someone trump is looking at. we also know that chris christie is another finalist. been doingistie had theyackground checks -- spent three hours together on sunday. turning over medical records and tax records. we know for sure pens and christie. trump told the new york times today that he has a couple secret candidates out there. david: we will see.
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we continue to wait for remarks from president obama in dallas. we are looking at a live shot of in the symphony hall in dallas. more "bloomberg markets" coming up. ♪
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david: this is "bloomberg markets." vonnie: u.s. intelligence agencies are using visual search software made by a company called -- technologies. this is a company that cracked , threeimaging and now letter agencies are using this. >> they started out as an
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intelligence function. and videocan images and pick out whatever you want them to find. in a security context, that might be somebody's face, a white pickup truck, drones come back from flights and have this high rest video, they can look for an ied in the ground, whatever it is. in the commercial context, you can look for a logo in a broadcast of an nba game or whatever it may be. they have sped up this process to make it incredibly fast. can pick the logo and find it in a few minutes. will be sifting through hundreds of hours of footage from body cams. it is a monumental undertaking to go through all that if you do not have technology like this.
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it's like looking at a bunch of puzzle pieces on the floor. >> normally, you have to do this long string of if you see this, you up to see that and you have a series of yes or no question jump to answer. each time you wait for an answer, the whole process stops. because there's somebody questions to answer, it takes a lot of time to look through video. what this company has been able to do through algorithms that are proprietary, they have done that search simultaneously. they have figured out a way to get rid of a lot of that yes or no. they do it a lot faster. traditionally, people sitting in a room getting tired trying to code video, trying to look over hours and hours for whatever it is you are trying to locate.
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it is inefficient and costly and they have sped it up. vonnie: do we know how accurate nervve technology is? >> in to tell is one of their investors. they trust it. they've come back with results that are faster and as accurate as anything else out there. they have done a partnership seesa sports agency that them as better than the people they had in their office looking at video. david: check out the article in bloomberg businessweek. senator john cornyn now speaking at a service in dallas. ♪
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e david: from bloomberg world headquarters in new york, this is "bloomberg markets." vonnie: commodity markets are
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closing in new york. julie: it has been a risk on sentiment today, helping stocks and commodities. seeing a big rally today, the biggest gain in crude prices in two months. 4.5% now, it continues to climb as the day goes on. it has to do with this overall sentiment and some supply disruptions in nigeria. the usda out today with its latest crops forecast. corn at 1%, cotton also getting a big bid here. because of what's going on in brazil, dry weather in brazil reducing the corn crop. slashing its estimates for corn to 20 million bushels -- 70 million bushels.
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that by extension is helping deere as well. , whenn see the big leg up that data hits at noon. david: thank you so much. let's get the headlines on the first word news this hour. and mrs. obama in attendance, speaking live there is former president george w. bush. this interfaith memorial service to honor the five police officers who were slain in an ambush last week in dallas, texas. the president is scheduled to speak in a few minutes. earlier, the senior senator from
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spoke, saying they confronted evil by running toward the gunfire. the protest rally taking place in dallas in several locations around the country following the of two african-americans in louisiana and minnesota at the hands of the lease. we will bring you more details as soon as we get them. bernie sanders has endorsed hillary clinton for president. the two will appear today and smith, new hampshire. hampshiresmouth, new he told the crowd mrs. clinton will make an outstanding president and he is out -- proud to stand with her. land a jobch could in a possible trump administration. three people familiar with the matters a trump is considering gingrich for a top national
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security post. five people have been arrested in washington today for allegedly firing shots at police officers. the officers were responding to reports of shots fired when they arrived on the scene and people inside a vehicle started shooting at them. there was no indication the incident was a planned attack on police. telling authorities say the death toll could rise following a head-on collision between two commuter train's. trains.ommuter said rescueed press workers pulled a small child alive from the wreckage. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries.
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david: an international court has ruled against china and its claims to disputed waters in the south china sea. rob levinsohn has been following this case for months now. let me ask you about what the ruled today. robert: it does have teeth in the sense there is no enforcement mechanisms, it is just the moral authority of the court. china says they are not going to abide by it. vonnie: china does not have to abide by it. the score doesn't have any means of making china fulfill its decisions. robert: that is correct. if china gets very aggressive inut asserting claims
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contravention of the court's rulings, it will be up to the u.s. to push back against that. vonnie: let me ask you -- david: let me ask you about the way forward. let's hear what the chinese state counselor had to say. >> china made its view very clear. 10 years ago, china made its position very clear. i believe it would be good for word and to keep its inwhat they have promised the good management and handling of solutions of these issues by the parties. john kerry talking about
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this particular issue, hoping both sides here would come to a diplomatic agreement. how likely is there to be some sort of diplomatic solution here between the philippines and china? robert: the philippines has a new president who has indicated some willingness to negotiate with the chinese. this court decision gives him a bit more leverage to perhaps work out a deal with the chinese. the u.s. is not going to take a position, i imagine. robert: the u.s. position has always been we do not take one side or another in a given claim. we just wanted to be a negotiated process and everybody abide by international norms. as long as china is in dialogue about this, the u.s. is going to be ok. it will be a different story if china decides to openly defy
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this ruling. i imagine a forum for that dialogue will be at the g20 meeting in china. do you expect it will be on the table there? >> shorebird -- sure. site meetings and back rooms, i'm sure this will come up one way or another. when you are a small country next to a big country, you can have the moral right, but if it -- if thisto power thing gets aggressive, it will be up to the philippines to appeal to the u.s. to have its back. is robert levinson in washington, d.c. president obama in dallas, texas.
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we will bring his remarks as in this it begins. ♪
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david: this is "bloomberg markets." vonnie: time now for the latest bloomberg business/. -- bloomberg business flash. that scheduling conflict that forced the cancellation of a planned meeting between donald itmp and the intel ceo -- turned into a fundraiser. he has not endorsed a candidate and says he will engage with both campaigns. david: microsoft offering a
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chance for small businesses to get on the cloud -- they will rent service for monthly fee. vonnie: jamie dimon says thousands of employees will be getting a raise. writes the banks will $12.15 an hour for full-time and part-time employees. that is your business flash update david: the s&p 500 its games. that's its gains. julie: there's always winners and losers. the maker of industrial fasteners, the company's sales growth is slowing, daily sales 1.6%.g to
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further weakness and faster sales -- in fastener sales. you on sharesdate of amazon. it is prime day. when around here is channel advisor said sales are little changed from last year. the shares down by 1%. we are watching the weapons makers today. we did have democrats introducing a bill called help and assault rifle tragedies act -- help end assault rifle
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tragedies act. --s according to a statement covering all assult-style firearms. the taser also appears to be falling into the category. vonnie: amazon's prime day is start. a rough #primedayfail trending on social media. hiccupsack ups -- a few this year. emily: amazon always holds numbers close to the vest. last year, was widely
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criticized. they sold more things on prime day than they did on black friday the year before. prime day was a success or amazon -- four amazon. this year, they are focusing more on electronics. they have a great deal on a samsung 4k tv. there's also pretty random deals. a toilet nightlight that glows in the dark. discounts.ome steep some fairly random items. an interesting assortment of things. , images usingious logging on just to see what's out there. thus it is interesting just to see what's out there. amazon is working hard to make
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this an event. alibaba has had success with their singles day. this is only for prime members, but we will have to see how the numbers add up by the end of the day. vonnie: what are they recording as an actual sale? emily: right now, the only information we are getting is from a third-party named channel advisor. they say sales are up 11% in the u.k. that's one of the only data points we know. headphones, they've been selling a lot of those. 18,000 earlier in the day. something else that is interesting is amazon's echo device which has been hugely popular.
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if you have a go, you get other special deals -- echo, you get other special deals. vonnie: the president is speaking in dallas at a memorial. [applause] president obama: thank you. thank you very much. mr. president, mrs. bush, my friend, the vice president and , chiefen, mayor rawlings , clergy, members of congress, i metbrown, i'm so glad michelle first, because she loves stevie wonder.
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[laughter] [applause] president obama: most of all, the families. friends. and colleagues. and fellow officers. us that in our sufferings, there is glory. suffering know that produces perseverance. perseverance, character.
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and character, hope. sometimes, the truths of these words are hard to see. words -- theose people of dallas, people across the country are suffering. memoryhere to honor the and mourn the loss of five fellow americans. to grieve with their loved ones, to support this community. wounded and to try to find some meaning amidst our sorrow.
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for the men and women who protect and serve the people of , last thursday began like any other day. like most americans, each day, tooget up, probably have quick breakfast, kiss your family goodbye and you had to work. -- head to work. but your work and the work of police officers across the .ountry is like no other for the moment you put on that uniform, you have answered a , even in at any moment the briefest interaction, may put your life in harms way.
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he and his wife, katrina, answer that call. not only because she was the spouse of a police officer, but because she is a detective on the horse. they have two kids. used to probably go to their school in uniform. that's proudly go to their school in uniform. the night before he died, he bought dinner for a homeless man. the next night, katrina had to tell their children that their dad was gone. yet, theirget it, grandma said. they don't know what to do quite yet. michael answered that call.
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his mother said he knew the dangers of the jobs but never shied away from his duty. he came 1000 miles from his home state of michigan to be a cop in dallas, telling his family this is something i wanted to do. last year, he brought his girlfriend back to detroit for thanksgiving. the last time he would see his family. michael smith answered that call. and over almost 30 years working for the dallas police association, which gave him the appropriately named cops faith.rd, a man of deep when he was off-duty, he could be at best found at church -- he
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could be found at church or plank softball with his girls. today, those girls have lost their dad for god has called michael home. patrick answered that call. just 32, a former altar boy who served in the navy and dreamed of being a cop. liked to post videos of himself and his kids on social media. on thursday night while patrick went to work, his partner posted a photo of her and their daughters at a texas rangers partner sogged her he could see it while on duty. call.thompson answer that that's answered that call. he served his country as a marine. contractor, he a spent time in some of the most
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dangerous parts of iraq and and a few years ago, he settled down here in dallas for a new life of service as a transit top -- transit cop. two weeks ago, he married a fellow officer. togetherle life waiting before them. like police officers across the country, these men and families shared a commitment to something larger than themselves. they were not looking for their names to be up in lights. the pay was decent but it would not make you rich. they could have told you about the stress and long shifts. they would probably agree with who said you don't
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hear thank you often. thateward comes in knowing our entire way of life in america depends on the rule of law. that the maintenance of that law is a hard and daily labor. in this country, we don't have soldiers in the streets or malicious setting the rules. instead, we have public servants , police officers, like the men who were taken away from us. that is what these five were doing last thursday. when they were assigned to protect and keep orderly and peaceful protest in response to
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the killing of alton sterling philhe landrieu cas -- andro castil. for it while, the protests went on without incident. that policee fact conduct was the subject of the protest -- despite the fact there must have been signs or slogans or chance with which they profoundly disagreed, these department did their jobs like the professionals that they were. dallas pd even posted photos on their twitter feeds of their own officers standing among the
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protesters. two officers, black and white stand next to a man with a sign that read "no justice, no peace ." came. 9:00, the gunfire ,nother community torn apart , moreearts broken questions about what caused and what might prevent another such tragedy. i know that americans are struggling right now with what we've witnessed over the past week. first, the shootings in minnesota and baton rouge and the protests. police byargeting of
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the shooter here. an act not just of demented violence, but of racial hatred. all of it has left us wounded and angry and hurt. if the deepest fault line of our democracy has been exposed, perhaps even widened. although we know such divisions are not new, they surely have past --se than recent that offers as little comfort. faced with this violence, we wonder if the device can ever be bridged. we wonder if an african-american community that feels unfairly targeted by police and police departments that feel unfairly maligned for doing their jobs can ever understand each other's
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experience. we turn on the tv or serve the internet and we can watch positions hardened and lines drawn and people retreat to their respective corners. how toians calculate draw attention or avoid the fallout. notee this and it is hard to think sometimes that the center will not hold and that things might get worse. understand. i understand how americans are feeling. but dallas, i'm here to say we must reject such despair. i'm here to insist that we are not as divided as we seem. i know that because i know america come i know how far
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we've come against impossible odds. -- i know that because i know america. i know how far we've come against impossible odds. [applause] president obama: i know we will make it because of what i've experienced in my own life. countrye seen of this and its people, their goodness and decency, as president of the united states. i know it because of what we've seen here in dallas. have shown us the meaning of perseverance. in character. -- and character. and hope. when the bullets started flying, the men and women of the dallas and theyd not flinch
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did not react recklessly. they showed incredible restraint. helped in some cases by protesters, the evacuated the entrance, isolated the shooter, saved more lives than we will ever know. [applause] [applause] president obama: we mourn fewer people today because of your brave actions. [applause] everybody wasa: helping each other. it was not about black or white. everyone was picking each other up and moving them away. that is the america i know.

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