tv Bloomberg Markets Bloomberg September 2, 2016 2:00pm-3:01pm EDT
david: we're live in new york over the next hour. a couple stories at a san francisco, washington, russia, south korea. we talk with bnp paribas for them to take action in september. vladimir putin sitting down to talk with bloomberg tv. david: the tone is set for apple with the iphone camera upgrades. business tracking. the markets close in two hours time.
>> vladimir putin is not taking sides in the presidential election but he doesn't care for the tactics of either hillary clinton or donald trump. >> you know, after all, it is not only one but the other candidate. they are very smart people. listen to them. tune in for more of the exclusive interview. don't miss the special report. it is designed to harm the bed.
a service to the public. , emergencyral damage declaration. later today.st and the world health organization issued a warning. continues to affect new countries. they convened the expert committee to assess the status of the epidemic. take a has infected 72 countries and territories. than more than 120 countries. this is bloomberg.
markets head to the desk. >> we look at what you expect, relatively quiet trading for u.s. equity indexes. job friday. on a all up just modestly well the highs earlier. .7% after the payroll report this morning. the closer to even. interestingly, when we go to a five-day chart of the s&p 500, we see that the index has traded in a pretty tight range all week and it looks a little bit more volatile in this space. less than a 1% move. it is tight range and we are up just .3%. the directional close today could help determine whether the major averages close higher or lower on the week. mylan shares are
down sharply. move.s more than the 4% lots of uproar around the epipen from hillary clinton. that is what caused previous declines. lawmakers are questioning aether the company has grossly underpaid medicare around that epipen. the company has agreed to do a brief committee meeting to resolve this issue. again, the stock is under pressure. we also have the big pharma names down sharply. all deeply in the red. as hillary clinton has outlined a set of proposals to crack down on unjustified increases in price on older drugs. the nasdaq biotech index is not under too much pressure. a tweet last years at the biotech sector into a bear market, but right now is only
down modestly. they say to going to health care? abigail: there is a reason to go into it. when we take a look at this the red color is the ten-year treasury yield. and we have consumer discretionary, health care, information technology. after the selloff, we see the 10 year yield plunged. all of the stocks were outperforming the 10 year yield. that is still true with health care. it is the best performer from the yield perspective of these various sectors. as for the 10 year yield today, an interesting day of trading. it came in a little bit light. ony thought the fed would be pod's and round a potential rate hikes.
vonnie: getting back to jobs, payroll has climbed by 151,000 for the month which is less than estimate. joining us for some insight, senior economist at dnp para bob. what jumped out at you? kathy jones tweeting out that half of the jobs created were in the very low-paying sectors. >> a think everyone can find something in this report. if you look at the overall data, it was generally solid. it comes on the back of several solid reports. $232,000.e gain is it is enough to confirm the fed outlook which is for moderate growth. -- on thethe fence
fed's outlook, jeffrey lacher took questions and said he hasn't made up his mind about september or later. the longer we wait, the bigger the risk we run. how is the fed influencing the interpreting jobs data? >> the range of payroll gains they see as consistent, it speaks to unemployment rate stable between 50000 and 150,000. we are well above that. the fed has been on hold for the past year. a more dovish strategy. in the face of good data.
they are more convinced that it is time to hike. it is the markets reaction. in order to get the markets priced in. some people have been burned by heights -- hikes in the past. people find it hard to believe that they actually will see another hike. it is a little bit of the fed credibility. david: the average weekly hours worked ticked down a little bit this year -- a little bit here. saying it was the most alarming number for him. disregard that.
how worrisome is it to you? >> it is a fair point. you should have aggregate hours worked also expanding. at this point, i am inclined to maybe write this off. and look for further evidence and for the report. especially after today's trade report which shows exports quite picking up. we have seen it very solid final demands in the second quarter. consumption growth of 4.4% and that is continuing into this third quarter. that is a strong picture for the economy. janet yellen saying there is plenty back in the labor markets and auto sales coming in very week this month. the other statistic that jumped out at me is that more than one third of workers now are part of
the sharing economy. >> it is>> it is possible. we have seen a shift in composition of employment as the labor force changes and the business composition changes. anything int see this report that signaled that in particular. a little bits weaker in the last two months. we need to smooth through some of these numbers and look at the trend. saying september. will it be one increase? >> we are one and done. important that they will probably communicate that they do expect to wait a little bit after the next increase. we wouldn't expect to rate hikes in a row. >> what happens? the market isn't growing
consistently. and last year, the outlook was far better. is that what all of this slowdown was? growth,ve chinese negative interest rates in japan, and in other countries. we had a lot of global scares earlier in the year. after that, we had a scare on the domestic front. mores disappointing, much different dimensions. it was that that really set the fed back. we had brags it and the risk and uncertainty. it was just another shock. defense,, we have growth, labor market data. no real international risk in the near term.
david: this is bloomberg markets. vonnie: a look at some of the biggest business stories in the news right now. david:executives headed to capil hill to discuss epipen prices. the company has agreed to brief staff members on the senate committee. the company also plans for the oversight committee next week. david: yum! brands setting the
stage for a spin off of its brands. it has agreed to sell a $450 million stake to chinese private equity firms, an affiliate of the e-commerce giant. bytrack to be completed october 31. >> a tax ruling on apple. government cut the company's tax bill. that they should support an appeal. and that is your bloomberg update. david: more now from the exclusive interview. russia's allegedly in the hack of the dnc computers. >> i don't know anything about that.
and they act so delicate. leave their mark at the necessary time and place. it is other hackers from other countries. it is an extremely difficult thing. we definitely don't do it at the state levels. u.s.ey want to disrupt the presidential election. talk about about how hillary clinton's campaign has responded. they have been pushing for answers about who did this. >> the clinton campaign often takes many hours to deliberate over a statement on something
important like this. it took us not long at all to get a response from them upon publication of this interview. a spokesman hailing the foreign policy directly tying lookingsingly, he was for interference and that activity was clearly designed to inflict political damage on hillary clinton and the democrats. going straight for the jugular. campaign strategy is very clear. americans are uncomfortable with the idea. resident putin calling any of the shots or in terms of the u.s. national security. and anything that points to his interest in one candidate over the other making sure that clinton is not the president. >> is it fair to make those allegations?
>> there are many ties that the clinton campaign has. what is the maneuver trump said was a joke. encouraging putin and the russians to discuss. ties with pro-russian forces in the ukraine and russia. andainly at a major role donald trumps trust for many months. even though, in this interview, they suggest they are not thrilled with either candidate, the clinton campaign believes he's putting his thumb on the scale to reduce electability. do they ask about how the candidates are campaigning? let's hear what the candidates had to say. we can't ask for
the american people. they have tactics in their own way. they have very smart people. warriors will listen to them. >> wheelers today from the fbi that they learned about their e-mail server. what color do we learn from the fbi today? this is just being released in the last hour and we are coming through documents. people knewhow many what her e-mail address was. according to the notes released by the fbi interview with former secretary clinton, at least 100 people and perhaps several hundred people were aware of her e-mail address.
the second is this question about colin powell and what did he adviser and what did she advise him? investigations found the former secretary of state advised clinton that if it were to become public, she had used her blackberry and became part of public record. we are getting information about had how many mobile devices been involved. we expect the trump campaign to try to employ this. but in terms of how much, fundamentally, it changes the american perception of the use of the private server. release behind the explains to americans why they felt their charges should be forthcoming.
the clinton campaign encouraged this full report. merges,information in it has yet to become clear if this will give the closure that the campaign is hoping for our just raise more questions about how this was used. margaret there, the bloomberg white house. vonnie: and making one big seller at big-box. this is bloomberg. ♪
we spoke about the battle over whistle pig. >> it has really created the ultra premium ride market. withve seen that happen other liquors like scotch, vodka, with bourbon. rye's turn.-- they invented a section of the market that didn't exist before. vonnie: who is whistle pig? david: it is raj bakta. he appeared on the apprentice. got fired on episode eight. ran for congress in the suburbs of philadelphia. got shellacked by 32 points. and has been a serial entrepreneur and speaking the next big thing. and with whistle pig, he has found one. >> what is this company up to right now?
it is having wild success and finding itself in the midst of a legal dispute. consultant to whistle pig, a living legend in whiskey making circles, he advised bakta on what to do for a source of aged canadian right -- canadian rye. it had not been used other than a flavoring agent for other blended whiskeys. the original rye itself was very high quality. they started buying that from a canadian distiller. they started bottling it there and they have been in the process of trying to actually grow it on their property, distill it on their property, and barrels made from wood in their own property. this sort of back list of whiskey that they are
continuing to sell. to they are also trying develop their own stock as well. >> which has original investors saying, wait a minute. >> he sought investors to help him get started. it included former colleagues of his. worked with in previous jobs as well as representatives from the santo domingo family. it is the second-largest shareholder. story in the latest bloomberg businessweek. this is bloomberg. ♪ . .
let's get the headlines this hour. taylor rids has those. presidente russian bloomberg editor in chief john micklethwait in an exclusive interview. presidentton -- putin: no can my don't know anything about that. you know how many hackers there are today. they can leave their mark in their time and place. from are other hackers other countries. difficultxtremely thing to check, impossible to check. at any rate we do not do this at the state level. bloomberg forn to more of our exclusive interview with vladimir putin.
before heading to detroit for his first general election appearance in front of a majority black audience on sunday, donald trump is going to philadelphia. trump will hold a roundtable with business and religious leaders from the city's african-american community. the republican presidential nominee has scaled up his outreach to minority voters in recent weeks. in germany, chancellor angela merkel hinted that she will decide whether to seek a fourth term by december. even though most speculate she will run again, her popularity hits a five-year low thanks in part to her stance on refugees. and the federal government is banning more than a dozen chemicals used in antibacterial soap. the agency says manufacturers have failed to show they are safe and prevent the spread of germs. the fda says there is no
evidence the products are better than plain soap and water. news 24 hours a day, proud by more than 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. david: i want to show you movement in oil this week over the last five days and speculation that at the end of the month, opec might come to some sort of agreement to curb production. down about 7% on the week. russian president vladimir putin sat down for an interview with bloomberg editor-in-chief john micklethwait, and he challenged putin on the statement that there would be a collapse in oil production. medical flight -- john micklethwait began by asking if he changed his view on a production -- oil production. president putin: if i said oil
output would end, i was mistaken. i don't come it's true, remember where i said that. but maybe i just don't remember. i said new deposits wouldn't be commission at the oil price. certainly speaking, that is what has happened -- strictly speaking, that is what has happened. even surprisingly, our oil and gas companies are continuing to invest. in the past years, the oil companies have invested 1.5 trillion, and if you take the states investment in the pipeline, the overall investments in energy is we put 5 trillion rubles in the past year. this is quite -- 3.5 trillion
rubles in a past year. this is quite significant. our oil output and electricity production is increasing. production has declined a little , by about 1%. by the way, we are the world's leader in terms of natural gas exports with of the global share of about 20%. in the export of liquid hydrocarbons, we hold a leading position. we still hold third place in gas exports and the internal production. this is due to the increase in hydropower output for electricity. demand for gas has dropped. that is the result of
restructuring of the domestic energy market. overall it is in great shape and increasing exports. also are going to talk to the saudi crown prince of the g-20. would you still be in favor of a production freeze if the saudis want that? president putin: as far as i'm aware, mr. selman is the deputy crown prince. he is a very energetic state figure and we have struck up a good relationship. man who knows what he wants and how to achieve his goals. time, i think he is a very reliable partner with whom we can reach agreements.
but still, it was our saudi partners who at the last moment changed their view. repeat, ouro and ion hasn't changed will forward a position again. we believe that this is the right decision. that is the first thing. the second thing, as everyone , the production was to be frozen, then everyone should do it, including iran. operating in a very low level related to the sanctions.
that from the viewpoint of economic sense it would be correct to find some sort of compromise. the issues and economic, but political -- the issue isn't economic, but political. i would like to hope that every market participant can maintain a stable in the global crisis. john: so you would be in favor of a production freeze but giving iran a little bit of leeway to do what they need to do? president putin: yes. vonnie: that was russian president vladimir putin speaking exclusively with john micklethwait. has also been tested by sanctions imposed by the west. for more on russia's double economic jeopardy, we are joined
professor ati, columbia university member of the council on foreign relations, and a leading scholar. explain to us what you mean by double economic jeopardy and how that might be impacting putin's decision to form new alliances, different alliances. padma: well, the sanctions, for example, are affecting the russian economy. shape.nomy is in bad it grows by 1% this year, it would be quite an achievement, the gdp growth rate of 1%. what has happened is that for investment flows -- foreign investment flows have dried up because of the sanctions. company andgest oil one of the world's biggest oil companies is unable to borrow in foreign markets because of the sanctions.
it cannot meet its operating costs. .his is a situation despite all this, president 87%n's popularity rating is among russian people. the media has been completely controlled. free people cannot gather on moscow streets to protest. is -- lot ofe ,nti-american feeling in russia when i travel there, even last year -- "oh, you are an american. you americans. we hate you." they talk to me in some way like that. so his popularity rating, despite the weak economy, is doing well. ,he emphasis on oil production
oil exports, and how it benefits the russian economy, i think lasthas happened is in the -- president putin, he became the leader around 2001. but the economy has not diversified. overemphasis on production and exports of oil and gas. today the world economy from japan to europe to the united states is not doing well. we are ourselves, the united states, is emerging out of the , and oil demand will pick up. but not from around the world -- vonnie: so who is in putin's sites?
alliance with turkey again after it looks like that relationship was broken. moving towards china, talking about fixing things in syria, and maybe having some kind of relationship with the donald trump or somebody here in the u.s. padma: yes, he is a very smart politician and smart policymaker, no doubt about it. if the economy is doing well -- not doing very well in russia, which card would you play to keep up your popularity? the geopolitical card. crimea, his popularity rating went up. the region ine, eastern ukraine, there is a significant russian minority. and so we are going to keep an eye on what happens there, although it is a part of ukraine. this kind of foreign policy
maneuvering is keeping his popularity quite high. that is what his approval rating is. david: what should we make of the policy in syria right now? in the interview with john micklethwait he said russia and the u.s. are gradually heading in the right direction. that was his quotation. not a lot of room in that for gradualism. why does he have such an interest in prolonging it? syria on 2, i follow points. rush is wanting to support as -- russia is wanting to support assad. it is a very close relationship between syria and moscow, russia. david: historic relationship. padma: very long time. to stabilize assad .
russians toor the say some locations, we want to get rid of youngsters, groups trying to remove assad, we want to destroy those groups, we would also like to get rid of isis in syria. ist is where american policy agreeing. we also, in the united states, want isis to be out. and while we do not approve of assad, as an authoritarian leader, let us put up with him worste isis is the situation. david: thank you for coming in.
a notable winner in today's session is apple. it is the top performer on nasdaq today and moving on two pieces of news. first, ireland's cabinet said it would support apple's appeal of european commission ruling that apple would pay $14.5 billion in back taxes. two recall itsas tablet after a faulty part and reports of exploding batteries. this is looking to unease competition after -- ahead of apple's release of the iphone 7 next wednesday. forecasts --g forecast missed estimates yesterday sparking concern about slowing demand and competition, whereally in yoga wear,
nike and other rivals are pushing into the market. foot traffic in malls was poor last quarter, but lululemon stock was up 46% the day before today's plunge. back to you, david. david: courtney collins at the nasdaq marketplace. vonnie: we're watching a story in the world of technology. you can see one of the charts of the hour. big drop in the of net worth. david: precipitous, i would think. vonnie: it was a lot of money, $800 million. david: on the reasons for that twofold to sizable drop in the company stock price but also regulatory filings on wednesday. collateral to secure personal borrowing. we are looking at the 2 companies elon musk is invested in. tesla in orange, we see it dipping down, as well as solar
city. we are not mentioning spacex. obviously, it had trouble this week one where with rockets exploded at cape canaveral. not a good week on the whole for elon musk. vonnie: probably don't worry about it too much -- david: yeah, exactly. like clockwork, apple is gearing up for a product event, focusing on its main moneymaker, the iphone. this is bloomberg. ♪
apple is set to unveil its next iphone next week. joining us is mark gurman from san francisco. how will the recall actually work? mark: this is a significant problem from a marketing perspective it a lot of people this phone.highly now there is reports all over the web about batteries exploding, catching on fire. 1msung said as of september they have 35 reports of this issue and because of that they have decided to recall the entire line, allowing goal 2.5 million purchasers thus far to have their phone replaced. david: mark, is this happening globally? however carriers responded to the announcement of the recall? mark: it doesn't seem like same-se-- samsung has nailed
down which units have the problem so they are recalling all 2.5 million sold. carriers have issued statements indicating how they will be involved in the recall. sprint says it will offer customers a comparable phone if they wish to use in the meanwhile, devices without the problems manufactured and shipped out -- vonnie: that is what i was going to ask. is there a replacement ready to go? otherwise what is the point of the recall? mark: sprint will be offering customers who did purchase the phone comparable device and it will probably come down to price. at you get a full refund for the note 7 as well as any accessories. they said that netflix subscriptions will be active even if you return the phone.
that is a nice touch in a negative situation. david: that is what is happening in the samsung world. event on september 7. set the stage for us. what can we expect? event is apple's biggest event of the year. it is significant from consumer and investor standpoint. you have the iphone category apple'sting over 60% of overall revenues. --re is the two 4.7-and 5.5-inch. the brand-new camera system takes pictures more like photos and with dramatically improved zooming capabilities. and the apple watch will be played up at the event. vonnie: will it help apple sell anymore watches?
mark: perhaps. haven'treason people bought the apple watch is how connected it is to the iphone. to release a new version of the watch with cellular data connectivity, meaning you could leave your phone completely behind and make calls and browse e-mails on the watch. are told that the new model will have a gps chip. you can more accurately track running and walking in different fitness applications on the watch. this way you don't need to actually bring your phone along for the long run. the gps will be in the watch itself. david: very quickly here, there was -- many indications that apple was trying to go lower in its price point and attract people who could pay less for the telephone than the high-end models would be. where is all of that in the talk
of having a numeral better camera? -- newer or better camera? mark: i think that apple's new iphone upgrade program, this program they launched last year where you could hide the iphone on the subscription model from has not picked up as much as steam as it should have. apple is not marketing it as well as it could. if they continue to launch that program the prices will come down overall. david: mark, appreciate it. we will have more on this story and the top headlines with emily chang at 6:00 p.m. eastern time, 3:00 p.m. pacific. coming up, the ceo of planar your resources. that is coming up. this is bloomberg. ♪
vonnie: we are live from bloomberg world headquarters in new york from the next hour, plus covering stories from san francisco, texas, and russia. the u.s. economy added 151,000 jobs in august. the jobless rate in the labor participation rate held steady, --gnaling continuing holding study in the face of global growth. and more from our exclusive interview with vladimir putin, russian president, ahead of the annual g-20 summit in china. highlights include his outlook on the ruble, later this hour. one hour from the close of trading in the u.s. session. let's go to the markets desk, where