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tv   Bloomberg Markets  Bloomberg  September 19, 2016 12:00pm-2:01pm EDT

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♪ we are covering stories from new york and send her cisco. here's what we are watching. in half an hour tilde plus it will hold a news can't rims on the weekend explosion -- news conference on the weekend bomb explosions in manhattan. today we sit down with an m&a veteran who advised on dell deals. we will discuss activist investors and the election impact. mark hirst sat down with bloomberg on the plan to take down with competitors. his comments coming up. we are halfway into the u.s. trading day. let's check in with julie hyman. fore: it's a big week
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central banks. we will hear from the federal reserve and the bank of japan. we have declines ahead of the very's meetings. major averages off the highs of the session. the dow and the s&p faring better. the nasdaq is underperforming the other major averages. we got one small data point. that was the national association of home builders housing can't insert index. that's giving some fuel to homebuilding stocks today. we are seeing the homebuilders etf game in the session. 1.5%. that's one of the better performing groups we are watching. we are also watching the
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aftermath of those bombings over the weekend. a suspect has been apprehended. we are watching a couple of groups in relation to that. the various gun and weapons makers tend to react in the wake of various kinds of attack. we are seeing strength in the gun makers today like smith & wesson. how does this affect consumer behavior or how is it perceived to affect consumer behavior? restaurant structs trading lower today. seeing the little bit of weakness. this is something to watch when we get these types of attacks. like not as much of a reaction in the stocks as we have been prior instances. right now let's check in
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on the bloomberg first word news. mark crumpton has more. for: the man wanted questioning in bomb explosions in new york and new jersey over the weekend is in custody. he was taken into custody after a shootout with new jersey police. he is a native of afghanistan who is now a u.s. edison. he was taken away from the scene on a stretcher. more than two dozen people were wounded in the new york blast on's saturday night. , also exploded in seaside park on saturday. a train exploded at station in elizabeth new jersey as a bomb squad robot tried to disarm it. no one was hurt. to assureobama tried americans. he also reaffirmed the nation's commitment to fighting terror. movinginvestigation is
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rapidly. i'm going to leave it to the fbi and law enforcement to provide details. everyone is aware at this point there is a person of interest who was the focus of the investigation. the president said the minnesota in and is not connect it to the bombings in new york or new jersey. the president is in new york for the un's general assembly meeting. in thailand searchers have recovered 18 bodies after a overly loaded boat sank the weekend. at least a dozen others are missing. than 100rrying more muslims on a holiday excursion. syria's military is declaring the country's cease-fire over and is blaming rebel groups for undermining the agreement. letlanes hit the city of a
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for the first time since the cease-fire took effect last week. airstrike killed 62 syrian government true. global news 24 hours a day. i'm mark crumpton. this is bloomberg. time for the bloomberg markets deals report. every monday we zero in on the m&a bill this with analysis from the biggest players behind the deals. today we are talking about activists in m&a. jeff mccracken is standing by with a very special guest. >> we have jeff rosen partnering here today. welcome.
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doing this for a while. i think three decades or so. >> it doesn't seem that long. were talking about activists and how their strategy has shifted over time. can you take us through how activist have changed over the years? >> i'm not sure at the rest have changed as much as the climate they are operating in and the response has changed. you might think of it as three phases. in the first phase when they began to take positions in companies and show up with a letter or a filing or something like that. the structure of the engagement was sort of overtly somewhat hostile at least. corporations responded very strongly with a sense that what are these doing here. it was confrontational. tendedtial core response
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to be to circle the wagons and try to fight this. that happened for a while with some amount of's access. over time the corporations continued to respond that way. they had more mixed results. they either won but it turned out they didn't really win or they just lost. over time the dialogue became more open. other shareholders began to join with the activist. it began to be hard to distinguish a true activist from someone who had long-term goals. you begin to see corporations losing or at least not winning. phaseed to the current where the engagement is more dynamic. corporations are looking for more positive ways of responding. there are looking for more ways of engaging with shareholders and it's more of an open dialogue. >> do they feel like the
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activists are not solo operators? they have investors working with them? >> you occasionally hear people quick things about something called a request for activist. feelholders actually do the company should be taking a more aggressive strategy. at least allegedly they are out there quietly soliciting. i don't know how much that really happens. do tend to get together. there is some overlap in goals classictegy between the activist community and the straight long holder. >> how has the law impacted or kept up with shareholder democracy and the push by activists? historically we were all brought up to believe that
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companies should be run by their and theredirectors were a selected group of issues as to which shareholders were empowered. a handful of things laid out in delaware and other state law. otherwise the board would run the company. over time you're beginning to see greater and greater police in shareholder engagement and more active shareholders. companies recognize that face. shareholder comes and takes a major position and has a lot of work it is worth listening to see what they have to say. >> you were intimately involved with dell. we had carl icahn. that was in 23rd team. how did the rulings of that impact companies since then?
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are they doing things differently? activism around m&a is ace upset of this broader topic. you are beginning to see circumstance is in which you will he shareholders either overtly activist or with their own agendas looking for an opportunity to get a price raise and provide other alternatives. i think that's a fact of m&a now. advisers certainly have denied to that. it is something you do pay attention to. >> how did carl icahn complicate matters? >> i have tried to forget all of that. >> because he made it so miserable? >> he took a substantial
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position in the stock coupled with the position that some long holders who were in the stock at a loss help together. near blocking position on the special boat that was required for that deal. the result was a negotiation about what the voting rules and the price would be. and ultimately ended in a price increase. and a successful transaction. it has worked out reasonably well. he has done some huge acquisitions. >> and us has happened that it's very hard for me to understand where it stands. the computer business seemed to rally and hit more tough sliding. they sold a bunch of computers. i don't really know where they are now. >> besides dell you have advised international paper and verizon and sotheby's. changed?boards
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>> probably three or four ways. thanare much more engaged they were before. studies show they are spending more time. they have more to read. there are spending more time engaged on strategy. some clamoring for greater shareholder engagement with shareholders. i think there is a sense in well advised companies that they need to be in touch with their shareholder base. hope is theye that will get to pursue that vision. one of the risks of increased shareholder democracy and everybody feeling empowered to make suggestions is you constantly wind up at a
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crossroads in life. i have a 13-year-old daughter who goes to an all girl school. that was not an easy decision or hard decision. we thought about the pros and cons. where not sure if it's going to work. it doesn't make sense to discuss it at dinner every night. to weigh the cons and pros and make a choice and see how it works. >> does that change how the rest of the board operates? so many different anecdotes about that but i'm not sure i know how to generalize. i have heard a number of management members and ordered members say that having well informed motivated younger and more quantitative input from a different kind of director can be very help pull. i have also heard people say that the wrong personality makes can erode communication.
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it depends on the chemistry of the group in question and their determination to be an effective board. >> we have gotten further from the financial us. our boards more open to deals are more willing to some sort of company that wants to do a big acquisition giving the concern about finding growth? much academic research on m&a and whether it help support doesn't help. is it better to have horizontal deal because of the synergy. i think boards are open to m&a. there is a sense that an increasingly globalized economy some amount of market power and scale and greater access to distribution and technology. brands areul global important attribute. also things people
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decide they can't develop themselves and they would rather buy. thank you. back to you. matt: thank you, jeff mccracken. and jeff rosen. an hour new york city mayor bill de blasio will hold a news conference on the weekend bomb explosions in manhattan and new jersey. we will have live coverage and you can follow it on your bloomberg. this is bloomberg. ♪
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vonnie: you're watching bloomberg. i'm vonnie quinn. mark: i'm mark barton.
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london mayor says the city is open for business post-brexit and he says keeping access to the single market will be crucial for london's future. vonnie: the european union is looking to collect back taxes from mcdonald's. it could be hit with a $500 million tax bill. myanmar'sy we look at transition to democracy. ♪ vonnie: the london mayor says negotiating access to the single market is crucial if london is to remain a financial hub. he sat down with tom keene yesterday. >> london is the powerhouse for the u.k. i think the government recognizes even if you were in favor of exit if you want to be
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on the right side of history is in your interest to get it right with the eu. it could lead to jobs leaving london. set back for angela merkel in recent elections. saw theiratic party combined vote in city council elections fall by a quarter. alternativeigration siphoned off votes. samsung's exploding battery crisis began with a rush to be the iphone. samsung speeded up the lost of afterlaxy note seven learning the iphone would not have any major renovations. millionreplace all 2.5 units that have been sold. billald's could get a tax
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from the european union. paid 1.5% tax on its profits. the eu is saying the investigation is continuing. bloombergme for our quick take where we provide context and background on issues of interest. after decades of military rule myanmar is transitioning to democracy. it has been four years since it began opening to the outside world through here's the situation. the party took control of the houses in february with enough votes to decide the presidency. giveslitary constitution the military key posts in the government.
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her party has named her as state counselor. she recently visited the white house where president barack obama said he would lift economic sanctions on myanmar. emerged from british colonial rule after world war ii and sell directly into conflict. gunned down with most of his cabinet in 1947. a military coup triggered half a century of military rule. the army annulled the results of elections that the other party won. the military showed signs of softening win a new civilian government announced political and economic reforms. here's the argument. ever since the outgoing president laid out his dramatic reform program observers have
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debated how genuine the country's transformation is. anti-muslim bigotry is deeply entrenched. smooth transition to full democracy will depend on if the military accepts an accelerated pace of change. you can learn more about this topic on the bloomberg. head to bloomberg.com for more stories. new york city mayor bill de blasio will be holding a news conference to discuss the weekend bombings. we will have live coverage of the news conference. you can also follow it here on the bloomberg. ♪
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matt: you're watching bloomberg
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markets. i'm matt miller. scarlet: i'm scarlet fu. take a look at what's going on in equity markets. this just happened in the last 10 minutes. the dow losing 76 points in the span of eight to 10 minutes. no specific catalyst out there. i was looking inside the sectors. of thesly our heat map industrial sectors broken down in the s&p was green across the board. now you are seeing big spot of red here in health care. verizon and telephone are the only stocks. i.t. was concerning. i dug into this a little bit and checked out some of the big usual suspects for market moves.
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it comesok at apple down pretty considerably. it came down to a loss of 1.2% after. apple but iause of think apple comes down because the rest of the index does. been an apple had outperform are all last week as well. in just a couple of minutes mayor bill de blasio will be holding a news conference on the weekend bomb explosions in downtown manhattan and new jersey. we will have live coverage of his remarks. this is bloomberg. ♪
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scarlet: coming up in just moments, we have new york city mayor bill de blasio holy of press conference on the weekend
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bomb explosions that took place in manhattan, as well as new jersey. matt? meantime, back tackle big: the s&p index taking a dive down. the big weights include telecom. the s&p still positive for the day. stronger day much earlier. let's go now to abigail doolittle with more on stocks. abigail? whatil: consistent with you and scarlet are talking about, we are seeing some volatility here. thisndex had been up morning, pointing away from record highs. just moments ago, the nasdaq went down slightly. fluctuating between small gains and losses. the drag is apple. now, down more than 1%.
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one point of concern could be jp morgan saying the very bullish reaction to the iphone seven is premature. also, last week was apple's best week in five years, gaining more than 11%. today's move down could just the a bit of consolidation. obviously the biggest company in the world. when apple goes down, it tends to be a big way on the indexes. abigail: indeed. another big drag to date is paypal. the analyst saying the shares are fully valued but the multiple at this point is attractive. plus, there is potential concerns around the earnings estimates between 27 and 2020. ,hen we go into the bloomberg that paypal we see
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has been stuck in a range from its ipo last summer. it is dropping back down into the range. time will tell whether or not paypal drops back down all the way to the bottom of the range near about $36. we will know soon. .att: thank you so much now, let's start with the headlines on the bloomberg first word news. mark crumpton has more from the newsroom. mark c.: thank you. as we have been reporting throughout the day here at bloomberg, new york city officials including mayor bill de blasio and state officials as well are prepared to hold a press briefing at any moment now about the arrest in new jersey today about a man wanted in connection with the bombings in new york city and new jersey. he was arrested following the in linden,ith police new jersey today. two officers were wounded, but not believed to be seriously
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hurt. he was taken away on a stretcher. the associated press reports the mayor of linden, new jersey says that an owner of inart noticed someone asleep a doorway. officers joined gunbattle, and he was wounded. more than two dozen people were hurt in the new york city blast in the chelsea neighborhood on saturday night. inipe bomb also exploded seaside, new jersey. no one was hurt in that explosion. president obama says the investigation into the bombings in new york and new jersey is moving rapidly. he says that americans will never give into sears and the bombings are not linked to stabbings in minnesota. at this point,:
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we see no connection between that incident and the incident in new york and new jersey. we are grateful the one lost their life. mark c.: in the minnesota incident, nine people were stabbed. the rampage ended when the man was shot dead by an off-duty police officers. none of those injured suffered life-threatening wounds. authorities are investigating the stabbings as a potential act of terror. hillary clinton and donald trump arnett can in florida. that is according to "the new times." 41% compared to trump, 41. clinton leads among hispanic voters and black voters. british prime minister theresa may will urge the united nations general is simply to do more to control mass migration.
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may speaks at the u.n. tomorrow here in new york. she will argue that mass migration hurts the refugees and the countries that they enter. they will say that migrants should take asylum in the first safe country they reach. as i mentioned, at any moment, we are expecting merit of lawsuit to hold a press conference on the bomb york and new new jersey. you are looking at a live shot of one police plaza in the city or. in the city. let me bring in steve. i can say, coming from penn station today, it was eerily quiet, and seemed tense. >> that is right. i think everybody is on the edge of their seats, try to figure out what is going on, what is happening, and what comes next. then, for the last way for
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hours, how people will respond, particularly the presidential candidates. i think everybody tries to be sensitive and careful about not over politicizing these kinds of things. when you have all of the elements of terrorism in a situation, in particular, in new york, where nobody, fortunately, lost their lives, you can expect politics to come out and politicians to come out pretty strong with their talking points. mark c.: we have also seen that because we saw the governor of new york, andrew cuomo, come from albany to talk to people down here. he toured the chelsea residents, trying to give people a sense of calm saying, in effect, they cannot let terrorists win, and new yorker should go on with their daily activities. >> that's right. we saw this dividing line before in the present of race. donald trump is talking a lot about refugees, about racial
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profiling, and the need to not be politically correct. we seek hillary clinton coming out against that today, talking about how we cannot be divided. she is using a lot of the same lynwood she has used in the past about needing to come together and support muslim americans and not profile them. kind of groundhog day. every time this happens, we see both present shall candidates in particular come out and take their side in this rhetorical .ar again, donald trump has been tried to tie hillary clinton for some time to what is going on in the middle east saying her policies in iraq are what caused the rise of prices. we can expect that in the coming days as well. this will just continue. mark c.: i know, of course, this is what you cover, the political sphere.
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there is almost a sense of foreboding that this does in fact have to become political. first and foremost there is the investigation. to find out that it's the person ino is in cut dusting -- custody, who they are describing as a person of interest, did this by himself, or part of a larger cell operating in the new york area. >> that's right. i think some people are hesitant to weigh in on that the ticker question just yet. president obama was hesitant to say anything definitive about that investigation. as of now, politicians are deferring to authorities and letting them do their work. mark c.: the sense that this is coming just a few days after the commemoration of the 9/11 attacks, what are we to make of this, if anything? just is too soon to say yet. as i mentioned earlier, both presidential campaigns are likely and already have started
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aboutp on this and talk whatever each side wants to talk about. for donald trump, he gets criticized for invoking fear, as he is very focused on policies that he believes have risen to the rise of such loan wolf attacks. hillary clinton on the other hand is talking a lot about steady leadership. that is the route that we can expect her to go down is donald trump comes out and says things that people will find divisive, hillary clinton will counter and say he is unfit temperamental he to be president. i think that is where you will .ee the political exchange go as for the actual investigation and the details, we will have to wait and see. steve making a correct
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point there, all of this happening as we are just two months away from the presence of election and one week away from donaldst debate between trump and hillary clinton which will take place on the 26th of september at hospira university here in new york. any moment now, new york mayor bill de blasio holding a press conference on the bomb explosion in new york over the weekend and the last in new jersey. this is bloomberg. ♪
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a liveou're looking at shot of the new york city police
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department there. any moment we expect mayor bill de blasio to hold a news conference on the weekend bomb explosions in manhattan and new jersey. we will have that live coverage and you can follow the event as well on the bloomberg. scarlet: thank you. oracle's open world of that is underway in san francisco. they are repositioning themselves in the crowd department. the ceonson spoke with today about this push into the cloud. >> because of what you might churchly think of as the midmarket or small and medium business that we would have never had the opportunity to go into, you have these companies now that have the opportunity to get the best and most advanced technology in the world with no i.t. staff, they don't need hardware, they don't need a data center. some of the companies you see around us here that i'm sure the viewers cannot see -- pandora, lyft, etc. -- really started with some of the same technology straight out of the cloud. interesting,
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the infrastructure and you talk about, having your own cloud. what do you offer there that puts you head-to-head with others? >> our strategy has been to build a whole suite of capabilities, starting at the application level, supplemented by a platform. the platform is everything from the database to tools, everything that is not an app or infrastructure. we are highlighting the infrastructure capabilities. for us, that means better performance, better security than anybody on the planet. >> what does it mean for the margin? margins are opaque and no one really breaks it out. what does it mean -- oracle has had this joy of software margins for so long. >> the great thing is the major supplier to the cloud is
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ourselves. we have a range of capabilities. , inmargins, we believe infrastructure are just as good as everywhere else. >> that is one place where you would expect competitors -- >> the one issue with the cloud is you have to invest before you have revenue. we were at 39% two years ago and predicted they would move towards 80. in the last quarter we were at 62. the reason they were at 39 is we invested and a lot of data centers of front. 10 of like the hotel business, you build a hotel before you can rent a room. >> it seems like revenue recognition has been consistent for cloud. some other companies and other spaces have big adjustments, really bumpy. us, q1, we just
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close. our cloud revenue plus the license business grew 16%. that is the way we look at the two together. >> as for maintenance, long-term, you have such great maintenance stream. the cloud business tends to have less maintenance. i wonder what that means when you look at the future of oracle. >> many of our customers, if they have a support contract today -- let me use an application as an example -- a couple of things would happen. hardware, allng of the infrastructure, the data center, the staff, so actually the support revenue would up. it will go higher because of additional services we are now doing for the customer. the margins would be reflected -- headed towards the 80 that i described earlier. who works down the
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street at a company called salesforce, suggested you were buying growth for acquisition, which you have done a lot of acquisitions. salesforce has done some too. how do you make that kind of decision? >> we do well. right now the r&d is in excess of $5 billion. r&d spending is not always the best indicator of yields. at oracle iscator the yield for r&d is so exciting about the number of products. we have written all of our software over the last 7-8 years and it all comes out of r&d. we have a pretty good mapping of what we build. we can go to the market and supplement the r&d with it. companiese
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buying companies, run by the cousins of the ceos. you have done this laudable thing where you stepped away and said, i will not that my shares. hell height are you willing to go? had you make that kind of decision? in the middle of that process right now. that is probably where i will it. we cleared all of the regulatory hurdles, except the u.s. >> as you look forward, you think there are more deals to be done out there? >> we do a filter with every acquisition we do -- doesn't make sense to us, doesn't make financial sense, can we run it softly and professionally? we go through all of those filters. i never get into any prognostication on m&a opportunities other than our history is probably the best indicator of future behavior. scarlet: that was cory johnson speaking with oracle ceo and san
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francisco. matt: any minute now, mayor bill de blasio will hold a press conference on the weekend bomb explosions and new york and new jersey. this has been pushed back already and could be pushed back again, certainly as they await information from the recent arrest. we will have live coverage for you whenever he steps up to the podium. you can also follow it on lies go. this is bloomberg. ♪
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matt: this is bloomberg markets. i am matt miller. fu.let: i am scarlet what happened in european trading today is the banks rebounded on friday. not deutsche bank. it was the biggest drag. shares are dropping for us it's time to day on concerns of its legal costs.
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as you know, the department of $14ice is asking for billion. the concern is that is more than twice of what was set aside for litigation. here you can see shares which are in blue. the bond price in the right. this is the collateral contingent bond which is still well off the february low. .he february low was back here now i will do another color, let's do blue. there we go. the stock price meantime is lowsing just above the seen in august which would be the lowest in about 24 years. in the capital structure, equity is the lowest. then you have the t or bonds --
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capital tier bonds. people are worried that if deutsche bank has to pay any kind of find, it does not have enough capital, it is undercapitalized. it would mean equity issuance, which means equity holders would be diluted. matt: there have already been fears of a capital raise out there, in the last year, even before this, deutsche bank stock had lost. the stock has gone absolutely crushed in the past 52 weeks. thisjust adds more stress, new story that they will have to pay -- well, that they refused to pay 14 billion dollars. if they were paying in the end, they would be able to buy fewer and fewer of them. take a look at this chart. yen in a way that we don't normally look at
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it. innts to yen white. everyone thinks of the again as a safe haven for a long time. when the vix rises, people are freaking out, they pile into the yen. the correlations have been strong. however, what we have seen in the past few weeks is it is falling apart. this is just one of many indicators that shows no one has any idea what the bank of japan is doing this week. fed is as the concerned, we think they will say as usual, we cannot hike this time, but don't worry, we will hike soon. with the bank of japan, it is anyone's guess. scarlet: you can follow that on
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the bloomberg. we will follow the fed and keep you updated on what happens in the doj as well. boj as well. matt: we kick it off with ford. they say that their business in .ig trucks is up 59% the ceo says that the company is absolutely not cutting u.s. jobs to move small car operations south because the michigan plant currently building them will manufacture other models instead. they are just creating new jobs south of the border. an global areare looking to sell themselves. the two units have yet to file a claim in the bankruptcy of sun edison. they say there working carefully to resolve all intercompany claims. cells of legal marijuana may triple.
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that is according to market research firms. cells growth is being driven by states where marijuana has been decriminalized and i knew state legislation. state legislation. that is your bloomberg business flash. scarlet: coming up, gopro ceo will be joining us. they have just unveiled their first waterproof camera as well as a slew of apps. this is bloomberg. ♪
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>> it is 1 p.m. in new york. good afternoon, i'm scarlet fu. and i'm matt miller. welcome to bloomberg markets.
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matt: from bloomberg world headquarters we are covering stories from the san francisco to bangkok. here is what we're watching. new york mayor bill de blasio will hold a press conference after the bomb explosions in manhattan and new jersey. you can follow the event as well. the mayor of london says his city is open for business post -- brexit. the ceo of the world's second-largest mining company tells us why china is so important to the global mining industry. we are halfway through the trading day.
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let us go to jubilee for the latest and markets. a come down in the past hour or so without a very clear-cut explanation. the nasdaq is now lower. you see that sharp leg downward. there doesn't seem to be a particular new event. looking at some of the movers both positive and negative, we have wells fargo which is rebounding. analysts say it is a buying opportunity and that it looks good relative next to the superregional bank. we are also looking at gm today. this is the first time he has
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had a positive rating since april of 2014. he says if you look at the move , it will be a lengthy transition but can generate return cash. on the downside today, we are taking a look at twitter. twitter is now the subject of what may be a class action lawsuit. it misled investors in certain metrics. that is after two years after the company topped 500 million users. the shares are down by nearly 4%. this lawsuit is seeking class-action status and finally is doingt company channel text of that from bernstein.
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matt: thanks very much. hillary clinton says she understands how to fight terrorism and is the only candidate who has been part of the hard decisions to take care of off the battlefield. she made her comments at a campaign event in temple university. >> there are no reports of a suspect in custody but we must remain vigilant. this is a fast-moving situation and a sobering reminder that we move need a study leadership. she called the attacks a serious challenge that the country can meet with concerts. he said he would bar immigration with ties to terrorism. an fbi is now investigating
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attack at a mall in minneapolis as a possible terror attack. a man in a private security nine peoplebbed before an off-duty police officer shot him to death. was described as a somali who has lived in the united states for 15 years. sweden wants the european union to punish other eu states that failed to move their budgets. this happened after asylum seeker approval. sweden receives three times as many applications as germany. gasoline prices are increasing across the southern united states following a pipeline break and alabama. aaa carolinas says the average price in north carolina was two dollars and 16 which is up from
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2.05 last week. that is an increase of $.13 from the previous week. the higher prices should be temporary. dayal news 24 hours a powered by over 600 journalists in over 20 countries. london mayor cindy con khan is wrapping up a visit to the united states and canada. was the perception that was created overseas that noton is going to be
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open-minded. london is open for business. you canill the place come if you are an innovator or business person. that is not going to change. we are the financial capital of the u.k.. we are the political capital. 40% of the world's leading companies have their headquarters in london. iswhat i don't understand what is next. he talks about the rise. where is that will arising in europe question mark where is the alternative? there is an alternative. business people who do this, if you want top -- top talent and you want to place.
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we are the city with the largest number of international students anywhere in the world. , we have the largest number of those. in london you can have access to talent, you can have access to the regulators. parliament is there. why would you want to go elsewhere? prime minister speaks for you and for the rest of the united kingdom, who is she speaking to? speak know who you should to two move forward. >> one of the things we have pressed upon the prime minister is that when it comes to negotiating with the european union is that london has a seat on the table. the government is agreeable to that. when it comes to getting ready
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for access to the single market, that is crucial for london. making sure it is confident. it is for a very simple reason. london is a powerhouse for the u.k.. ofn if you were in favor brexit, if you want to be on the right side of history and you want to make brexit success, it is your -- in your interest to get right with the eu. that is why you have to get it right. the idea of london and the united kingdom. can you go at it alone? >> we will survive. in issue is increasing prosperity and being a beacon for the rest of the world.
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that means having access to the single market. and of course remembering the special relationship. the usa has more foreign investment in london than anywhere else. do great work and financing and in culture. my point is very simple. we have to use brexit as an opportunity. recognize america and china are also opportunities as well. >> how you respond that those -- there is a huge amount of and certainty. -- uncertainty. elections caused by elections of france and germany in october. my advice to my government is to have a sense of calm.
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let's make sure we negotiate the best deal. we should delay article 50 as long as we can. there will be more than two years time to get a deal with the eu and reassure. we are not going to stop being open-minded. >> who was in europe do you speak to? there are individual leaders with a certain town. sayinghad eastern europe we need london. from what i can tell, he does not mince any words. he wants a completely different tone. >> you of the five presidents. i speak to everyone. the eu to not want us to leave. they say the eu without the u.k.
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will be a much weaker eu. it is an interest for them to do a deal. it has only been a few weeks now. sure that we get the best deal. the deal will be for decades. that was london mayor speaking. coming up this hour, mayor gil -- bill de blasio will hold a press conference. we will have live coverage for you and you follow it on bloomberg. apprehended someone in that case. two police officer's were shot. this is bloomberg.
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>> this is bloomberg, i'm matt miller. they are becoming more optimistic for a commodities to make -- command. >> china is very important for us, for the mining industry. we do spend a lot of time in china. the back of the meeting, we have
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customers and suppliers. becoming much more aware in relation to china. it is very important to us. if we look at these metrics or look at the way the chinese are looking at the economy, it is not about gdp.
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when you look at those four or five key metrics. inside look at it and step back, seems toe experienced have placid. -- plateaued. we are coming more cautiously optimistic. that seems like you are on the fence. toif you had asked me question a couple of months ago, i would've said we are slightly concerned. in this current market environment. you can see the inflection points and we are going to make the most of it.
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>> are we going to see that show in iron ore or short-term. you remember something. during the winter, the construction reduces it in a big way. i am seeing it in the right direction but in the short term, you would expect it to come. medium to long term. in the very short term. it was cut cut cut.
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what is your message for the big your employees right now? have we moved on from that? productivity, it is not about only targeting the top line but the bottom line. revenue fromd more our capital base. we're doing a lot of work to attract every dollar we can. and as i said, it is about productivity and about more cash flow and even if the market conditions are not that great. you can extract much more value. sebastian, the ceo talking. we talk coming up next, about bitcoin. this is bloomberg.
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this is bloomberg markets, i'm scarlet fu. and i'm matt miller. we get to some of the biggest business stories. talk aboutnalyst growing ad revenue. they raised the stock from 148 to $158. facebook has shown strong growth despite increasing competition and a time when other social media platforms have struggled. matt: confidence has surged. the national association of home bill -- homebuilders climb six above 50.h readings
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and carnival is backing three new television shows about travel. the programs will air saturday .ornings the company says it is part of a strategy to generate new customers. the shows begin october 1. scarlet: that is the bloomberg business flash. matt: cyber security concerns are at an all-time high for banks. a block change. solve newable to problems. really exciting stuff that you are at the beginning of introducing this new technology.
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it can be even instantaneous. to be here. let me start by talking about the cyber conference. this is one of the largest financial services conferences in the world. annual gathering of probably 8000 delegates and one of the most exciting topics is going to be block chain. let me tell you what block chain is and why it is so important that financial companies collaborate. each financial company has its own books and records. which is also known as distributed letter technology actually enables those ledgers
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to be shared. matt: who would the minors the? >> this is exactly why it's the early stages. are doing ampanies number of test to see how it can be deployed. the hurdles associated it is something that needs to be addressed. you need to make sure you have the most secure block chain. scarlet: we have new york city mayor bill de blasio getting ready to come out to speak to the public. this comes at the heel of these explosions. this is taking place.
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matt, you were talking earlier about how they had apprehended suspects. matt: here we see the police commissioner speaking. he hadright of course been scheduled to speak earlier. off.d been pushing this i suppose he wanted to get more details about that person in new jersey. mark crumpton is standing by. the mayor and governor had spent the good part of the week fears of newm yorkers think they were on top of this case. this happened in the chelsea neighborhood.
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and again that also led happen in seaside park new jersey. we have yet to make a connection but as of this morning, they had. they were looking through the man thata 28-year-old was the main guy behind the explosion. and again as we have been reporting, he was taken into custody. he was found sleeping in the wasway of a bar and recognized by authorities and engaged in a shootout. he allegedly shot one police officer. fire and heurned
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was wounded and taken to the university hospital where he is now being examined and is under heavy guard. you are watching the beginning of a live press conference. bill de blasio is standing there and the mayor is about to take to the podium. and whether or not there have been reports that it could be thatof some terrorist cell has not been confirmed yet. >> all of the city agencies and our federal partners, i want to thank them all. hope they will have a very speedy recovery. iss is a situation where it
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been rapidly unfolding -- unfolding. as per usual, there are some things we will not be able to talk about. we will do our best to tell you what we can give you. that ito note up front received a call from president tell and he wanted me to the people of new york city how much he admired the resilience and how our people handed this crisis from moment one with strength and resilience. i am happy everyone is back to addition, the president offered his congratulations. we have a lot more information that is coming in all the time. so much more information than we had a few hours ago. we have every reason to believe this was an act of terror.
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there is still a long investigation ahead but now we have every reason to believe this was an act of terror. addition, because this was an ongoing investigation, all new yorkers should remain a gillette. findy given point they may a conversation that could very much aid them. we won all new yorkers to be vigilant and provide that inspiration. number with any information you have. today anded earlier messaging system used by our office management system to get information out to all new yorkers. it had an extraordinary effect. reach all of our
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police officers simultaneously. that is something that proved to be very helpful, getting that message out. helpfulve that was very but there is still information that we will need going forward. it will be an ongoing investigation. isally, though this suspect , we will have a very strong and visible presence. we will continue to see this. trained see heavily officers and you will see people in the subway.
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the bags being checked and bomb sniffing dogs. that will continue throughout the week and we want that high level of readiness. tosk all new yorkers continue your vigilance. i want to thank assistant director sweeney for the great cooperation at the fbi in this matter. good afternoon. hundreds ofided personnel from new work along bureau and ytd detective developing and tracking leads and revealing surveillance footage and executing searches. collectionr evidence , we began to focus on this man working to develop his whereabouts.
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last night, they conducted a traffic stop in brooklyn. reservedcle had been at a location associated with him. circumstances they executed a stop of that vehicle. no one in that car is under arrest. collectionr evidence , searches and interviews were conducted. additional leaves were followed as well and we turn to the public. a short time ago, he was arrested in new jersey. two officers were arrested as well and we hope for their quick
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recovery. .e will continue to conduct for that reason, i do not expect -- the work of the first have been exceptional. we're going to take a few questions. >> obviously a lot has happened over the last 40 or so hours. i want to add my comments. andolences to the officers
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the victims in new york. i believe there is going to be a charge based on the shooting of the officers by the local prosecutor there while that is pending. that thexpect attorneys there will be working to put together a comprehensive and thorough -- throw collection. we are not rushing against each other to bring charges. we have been all racing together but we will take a lot of time that if we bring charges federally that we do it in a way that is careful and thorough. knowledge ife any he had training overseas? you did say he was just --associated with the device. >> we have no knowledge that the
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investigation continues. we are not ruling anything out, the investigations take a while. where absolutely not ruling anything out. i'm not going to comment on that. >> could you please speak to the investigations. i have no in the last indication then that there is a self operating. as we develop more information,. [indiscernible]
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>> i believe it was, i don't know that for sure. you would have to confirm that with new jersey. i don't have any information on that at all. >> i won't comment on the types of tools that we used other than to say that the tools are fabulous. they are necessary. >> a lot of technology involved in this. a lot of old-fashioned police work as well. this was a quick turnaround and
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it happened 50 hours ago and now we have ourselves act in custody. i think it is a tremendous top by all involved. helpful in other instances also. are 36,000 of us but if we can get them engaged, this is the place -- way to go. >> what did you gain from that? i won't comment specifically on something from the pressure cooker. any piece of evidence that we maintained is worthwhile. i would leave it at that. >> was there anything sadistic?
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lisa, that is all going to be part of the investigation. this is going to be part of it. >> i don't have any information but we keep all all options open. there is nothing to indicate that he was on our radar. we had reports of a domestic why the but that was allegations were recanted. was the governor invited here?
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yes, he was invited and we are working with him but we got together at the site and spoke to folks at the community. and i thinkeration you can see the results of this combined effort. it hascommissioner said, made a huge difference. you can ask his team about that. >> i do not. i do not have information yet to show the path of radicalization. your first question was about a record, i do not recall.
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>> donald trump says law-enforcement officials should go back to the playbook. are addressing a perfect crisis, we do not want to talk about partisan politics at this point. and very proud of the nypd fbi. i have a lot of faith in law enforcement and how they do things right now. was new yorkers want to know --ht now are the chances >> at this point we are extremely grateful that we could apprehend the suspect out in linden, new jersey.
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we always have to be at the state of alert. i far as this investigation am a lot happier today than i was yesterday. all new yorkers should deals -- feel secure. we will continue in this investigation that we get to know who was involved and why. >> let me just add to that. is no other individual we are looking for at this point in time. second, vigilance is called for. it is very important that if you see anything unattended, call it in. find a law enforcement officer. i think the commissioner is exactly right.
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ofare a very appreciated of those who got the suspect. in give us a phil and are you glad that the suspect survived the apprehension? apprehension myself i am much more relieved than i was last night. can you talk about who he is? i can't tell you who he is, we have to build that whole picture. i do not have enough knowledge and my head right now. in new jersey most recently but i would have to go back and look. >> was there anything on him to
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suggest radicalization? >> no, not right now. pacifichere any things about how that was helpful. , -- several questions they are obviously. is a very valuable tool. it created a lot of focus and urgent he. enforcement colleagues will be able to but what we know right now it definitely contributed this is -- successful apprehension of the target. there obviously was an imminent threat and it is another innovation of what is going on
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that there was a way to reach people different from the past. no more wanted poster on the precinct house wall. this is a modern approach so yes we will use it. it made sense to do it very broadly. -->> we're going to let the cheap talk about that. we have a video of two persons who picked up the bag. they were strolling up and down this avenue. toever, we still want address it. they walked off with it.
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hopefully we can get them out. >> do you believe this guy is acting alone? have as now we need to we go for it in this this is part of an investigation. we are not actively seeking anyone. is there any indication -- >> good question. it is difficult to say right now is they even pulled the wire. that is something for us that we can talk about. i do not know if they played a role in that.
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[indiscernible] again, from what we have now are two separate incidents. they are very different. we are always free thinking central park because it is still an open case. can you say anymore about the undead -- undesignated pressure cooker? are they still in custody? theyou describe whether could potentially target? still inndividuals are custody and i'm not going to
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discuss what we will face in the potential future. did the suspect make any statements during or after? the question is did the subject make any statements, no not that i am aware of. new jersey had a team out there. that will continue as well. reporter: how valuable were surveillance cameras? they were all over the place. >> that is the world we are living in an any street, any captured on video surveillance so as we go through the investigation and continues to gather more surveillance video, it is going to help us move forward in this case. we're going to make sure they are brought to justice.
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reporter: what specific criteria is used? in understanding how to reach a terrorism charge, you have to understand the difference between a bomb going off in a crowded the streets. where there -- whether that is , you have tororism know who did it and why they did it in order to meet the statutory requirements. the basic definition of terrorism and the federal law side is the use of fear or violence to achieve political
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and social change. from the outside of this case, our first priority was to understand who was behind it. our ability to see through the they did it or what was behind it and whether it was terrorism required as first understand who did it. the search was conducted last night and interviews are being conducted today. of broadening understanding the shooting is going to be the part that brings the element forward. it will be laid out in those charging documents. that is kind of the processes behind your question. how do you get prepared to terrorism?
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the amount of progress that was made in 24 hours between the and somehe intel team extraordinary work by the tens bureaueuro -- detective in terms of searching and then expanding that out in several circles. reporter: can you say a little about the explosion in seaside park? >> the question is about how do
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we link that. we can do that through evidence and analysis and i cannot go further. >> a wide-ranging press conference in police plaza. federal officials discussing not only the bombings this weekend but also the height bomb blast. at least 29 people injured in new york city. also, the capture of a man who was called a person of interest. let us recap for you. we spoke to president obama that heis saying admired the resilience of the people in new york city.
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thatalso told reporters they have every reason to believe that this was an act of terror. the mayor also said they world continue to be a strong and vigilant police present. also because of the un's general assembly gathering. the annual gathering that got underway today. william sweeney as the special agent in charge. said that more investigations are being conducted to understand the motives of the suspect identified as 28-year-old ahmad khan rahami. at a he was found sleeping bar in new jersey. you can see the exclusive video. he was wounded in an exchange of gunfire and authorities say one officer went over to him and he
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pulled out a gun and shot the officer. he was saved by his bulletproof vest. the one officer who was wounded was taken to area hospitals. they are said to be in good condition. and says u.s. attorney that new york and new jersey prosecutors are not working against each other's and are looking for a careful presentation of the facts and charges. the special agent also said there is no indication that there is a terror cell and no information about a path to radicalization as far as he knows. he did not make any statements upon his capture. that sums up the press briefing that we just saw at one police plaza in new york city. bill de blasio is urging people
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to remain vigilant even though a blasts in that weekend is in custody. he was shot and wounded by police. authorities say he is being treated by heavy guard in new york, new jersey. back over to you. scarlet: we did see the u.s. stock market take a couple of legs lower. if you come inside bloomberg 12:15 when we were talking about the lowered stocks. it has extended and we are off our section that you can see but we haveoff tricked into the negative range here. this is one of the big reasons why. big drag on markets. it is a huge piece of the nasdaq. let's take a look at the
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imac here. but alsoee the losers the winners. telecom we saw down before. evenmer discretionary and staples have been moving lower throughout the day. we have financials as the but nowgainers overtaken by real estate. it is finally its own group today. training and apparently it has been recently taking ahead. with a going lower, we did not see a corresponding move. i bring this up because we have two big events this week. the federal reserve meeting and then the bank of japan meeting later on. the dollar has come off of its lows and is holding.
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as we look at the 10 year as well, not much there either. it is moving within and narrow range. pretty much where it began. up, paul ryan name checked it banca trump. -- devonte the trump. this is bloomberg.
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>> it is 2:00 p.m. in new york. vonnie: welcome to bloomberg markets. ♪
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david: we are alive and bloomberg's world headquarters in new york this next hour plus california, washington, london, and beijing. speed today. the s&p showing a drop to the downside. what is driving that reversal? --hear from the ceo who will who will tell us why he is going more optimistic about business ofchina and the impact terrorism in the presidential --e, hillary clinton says while donald trump says a lack of profiling may be to blame. in about two hours and julie hyman has the latest. julie: we are seeing them come off of their highs for the day though bouncing on the lows. we do not know why ackley it is happening.

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