tv Bloomberg Markets Bloomberg September 19, 2016 2:00pm-3:01pm EDT
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. it does not seem to have been
driven by particular headlines. i will look at this. a half.nt and clearly bouncing off the lows of the day as we washed a strange movement in the s&p today. 12: 15, a sharp leg lower in the markets across the equity board. that did not seem to be explained by a particular news event. a lot of traders have been watching that press conference , answeringt watched some of the questions surrounding the bombings over the weekend. of thelook at some movers, apple has been one of the biggest contributors to gains. it was higher not by much but because it was contributing to the gains and now it is the biggest single contributor to the week as we see in the s&p
500. apple has been rallying recently on early indicators coming out from telecom providers, demand for the iphone seven but now falling back today. we are watching and the day today, a number of different deals, info blocks, company selling itself, valued at $1.6 billion of network control security company, text data is up there because it is buying text solutions group for 2.6 and dollars. both of those stocks are up interestingly enough and community health systems, up sharply friday, falling back today. the company is exploring a variety of options when that report first came out friday, the shares spiked, but there was skepticism about whether they would find a buyer. that was responsible for the coming down to earth and today'session. no coming down to earth, shares
doubling today, a maker of a treatment for a rare kind of muscular dystrophy which afflicts young boys. the parents of these kids have to beushing for a drug approved, rejected by a panel back in april but now the fda has not approved the drug for a fast-track, accelerated approval process. that is responsible for the huge jump we are seeing in those shares today. david: thank you very much. vonnie: now, mark crumpton has more from our newsroom. moments ago, new york officials concluded a news conference where they discussed the arrest of a man wanted for questioning in bombing explosions over the weekend in new york and jersey. >> we have every reason to believe this was an act of terror. andill go into some detail
there is still a long investigation ahead. have every reason to believe this was an act of terror. mark: a law enforcement official ays investigators regard 28-year-old taken into custody after a shootout with police today in new jersey as the main guy in the two explosions. they plan to look into whether any others had a role. hillary clinton said she understands how to fight terrorism and is he only candidate who, in her words, will make hard decisions to take terrorists off the battlefield. she called the attacks a serious challenge the country can meet in concert with our values. donald trump has tried to appear as more of a statesman as the november election draws near. last month, he made a controversial visit to mexico.
more than 800 immigrants from so-called special-interest countries have an report -- deported or removed after being granted u.s. citizenship. that is according to a report from the department of homeland security. the report does not identify any of the countries or immigrants by name. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. back to you. let's get back to the markets with stops fluctuating ahead of the federal reserve and bank of japan meetings this week. we are joined now. you anticipate a lot of volatility but we are not seeing it anyway. >> absolutely but volatility has come back to some extent. we have 40% increase in the vix, something we have not seen.
we had the market trading in a tight range. an interesting thing i have been looking at is investors who have that on volatility coming back, there are some etf's you can buy that will make the bet for you. investors have been piling in at the fastest rate since 2012 and they are really looking for volatility to come back. it just has not been there. last week on we saw it, they started to cash out. saw bets come back in by about 15%, the most since last year. basically, they are taking money. mean at a certain level? we are up from where we were. >> exactly. these are purely on the vix. it goes hand in hand with the tate rangeley had. options traders looking to see how much the markets will swing further out. david: what is apple's role? we saw that spiking.
>> it is interesting because a lot of macro news will be coming up this week. we have the fed and the bank of japan but right now, we are a wait and see mode. what you have to trade on in the meantime is apple. it really has the ability to move the market. it was the reason we ended the market where we did. seeie: you will be able to the s&p evaluation has surged relative to earnings. at what point do we get into the room -- the earnings season again? clive it is a great chart for my colleague. valuations are high at the moment and according for -- in order for the stock market to back, earnings will have to expand by 13%, which is very rare for the market. it is concerning when we see oil back down because it has a lot
to do with capital expenditures. if the oil conch -- oil is not there, that will be difficult. it is definitely something we are keeping an eye on. david: on that, a note on my bloomberg's, you can see oil is running and that has been the case for some time. this was a commodity story for some time, when markets went up. you absolutely. remember when oil was such a big story? i feel like we forgot about it but it did not go anywhere. different refineries took oil off the market but us soon as they came back on, we had the issue again. oil will continue to be a story but it matters what else is in the market and how much it will pull in. it looks -- looks like it is getting back especially down near about the $40 per barrel range. that is all related to the dollar.
>> absolutely. it will weigh on inflation. it is in mind right now. we are at a 20% chance for the federal reserve. probably not going to happen but any sort of indication they we have tended to see over the past few meetings that equities do well when they are dovish but a lot of analysts have said to me we think they will have to say they will increase interest rates at some point. a lot of bark and no bite. at some point, they will have to raise interest rates. they might want to give that sort of interest rate at that meeting. david: he sure to catch our special coverage of the fed decision at 1:00 p.m. and 6:00 p.m. on bloomberg tv. vonnie: coming up, the mayor of london says his city is --
vonnie: this is bloomberg markets. david: time for a look at some of the biggest business stories in the news right now. taking a leave of absence, banking employees, more than 2 million customer accounts. did not save it was tied to the investigation over the bogus accounts. one day for the ceo is scheduled to testify for the senate banking committee in washington. ford is pushing back
against criticism by donald trump. up 60 -- 59%, production to on ohio factory south of the border. michigan plan currently building to manufacture other models. officedisappointing box debut of blair witch, less than half of the amount anticipated by analysts. the stock surged on friday in anticipation of a strong showing. 17 years after the where which project, one of the most popular movies of all time. that is your update. 17 years. the london mayor is wrapping up a trip to u.s. and canada and willures investors he
leave the european union. tom keene sat down to talk about the goals, have a listen. >> my concern to leave the european brexit, a perception may be created overseas that somehow london will stop being open-minded. we have a simple campaign. three words. london is open. >> i do not understand where is the next london? where is the alternative? to friends in america and business people who do great work creating jobs and growth is in london, you can have access to filing for banks over there, access to bank regulators, why would you want to go elsewhere? >> when the prime minister , london, and the rest of the united kingdom to europe, who is she speaking to?
do you know who you should speak to to move forward business and politics? >> one thing to impress upon the prime minister is it is crucial my comes to the european union that london has it around the table. government is agreeable to that. it means when it comes to getting ready for negotiating access to a single market, our government needs to recognize it is crucial to london, making sure relation to competencies, london is considered for us -- for a simple reason. i think thes is government recognize that even if you were in favor of >> it, to the other right side of history and make brexit a success, it is in your interest to get the right to with the eu. it could lead to jobs leaving london and that is why they have got to get it right. the idea of single marketers, a wonderful story on the idea of london and the
united kingdom. do they need the eu single market or not? it has done that for a bit, hasn't it? they will increase in prosperity, having more jobs and globerowth, showing the that london is open. that means access to the single market and talking to european neighbors and remembering a special relationship. we have got to use an opportunity to reconsider what -- with the eu and also recognize america, canada, australia, japan, india as well. >> still ahead, how young undocumented immigrants in the u.s. feel about the upcoming presidential election. plus, we are keeping a close eye on the markets.
vonnie: this is bloomberg markets. david: election issue is not about politics. focuses on the electorate and people in the u.s. election. also speaks to those who have the most at stake in november, undocumented immigrants. highest ofhe undocumented immigrants in the u.s. the second highest rate in the country of people who have applied for the federal program for undocumented results.
it is a program by the president after the senate failed to pass immigration reform. the presence that i can do this by executive action and now an enormous amount of people who applied to the program, a two-year program, if somebody is elected who does not want to continue it, it goes away. these have more at stake than anyone in the election because it is pre-much sure if hillary clinton is election -- is elected, the program will stand and of donald trump is elected, he said he will get rid of it. they were willing to talk and these people have applied for the most part came here as young children, part of the program, you had to be under 16 when you came to the u.s. they made their lives here and have applied for the program and they talk about the sort of relief of having documents for the first time in their lives, getting jobs, we spoke to one couple, a one-year-old daughter
and they said they were able to get jobs on the books and build up a credit history and by house he comes the program and they talkmore than happy to about it because the federal government knows who and where they are. the group included business owners and the woman said most of the people in the group were politically active and that was in part how we found them. phoenixk of people in who are very active when the senate was debating immigration reform and were stuck with each other after the program was put into place. working as political consultants and marketing specialists and a woman has her own consulting business and started a clothes line and said the thing is i can be an employer as an undocumented immigrant. no one cares.
be an employee. can hire people and to all of those things. it is funny. the details, you do not think about it but there are all these little details that go into building a life. >> on newsstands and on now. sticking with politics, paul ryan talking about their public and parties economic plans this afternoon. and really was there and he joins us now, following the footsteps of donald trump there last week. withlosely aligned messages from trump and ryan? classy tough a lot about things he talked about in recent years. doing aeen a torque -- tour of america and it has opened his eyes on some things but there are very clear hints he seems like he is planning with the trump campaign manager the same fiscal policies. the most important today was up
on the near economic club behind him were tom's are keen, henry kissinger, and right there behind the right ear was ivanka trump. he is not normally there at the economic club. what is going on, we do know from house reporter that there was explicit coordination about attacks and before paul ryan signed on. not only is donald trump adopting the house republican plan, he is adopting their accounting. that is important because it is how you sell the plan. vonnie: explain more of what paul ryan said today. >> he was asked afterwards what you think thevonnie: private -- priorities will be with a republican president in office and he said the first thing i we can get done is tax reform. we had been hearing that for a while and we thought after the midterm, that would happen as
well. that would be great if it could happen. >> i do not want to gloss over dynamic scoring. the other thing we are hearing is both paul ryan and donald trump are using the same accounting from the tax foundation, this is a conservative think -- think tank, the heavily weights tax cuts. it so happens i brought an envelope and we will walk through this. we start with a trump plan with a $4.4 trillion deficit. this is tax foundation dynamic scoring. not the joint committee on taxation. finds $1.8ndation thation in magic money does not have to go out of the treasury because it is coming back in through increased economic growth. it is a generous estimate. $1.18 trillion. >> it is presumptive of people creating jobs because of those.
classes assuming those tax codes get spent either a new material goods or consumer spending. you talk about it every day. both of those are hard to create and it is not necessarily true if we lower taxes that will happen. so another $1.8 trillion comes through, the savings that will come from increased economic activity, that leaves us with 800 billion know problem. that is going to happen through promises of future discretionary fiscal restraint. these are things house republicans are talking about. they're talking about the restraint, which is, is me nonrestrictive fence mecca net -- but not yet. vonnie: did he make any concrete suggestions about how that will come about? >> he wanted to stick to broadly applying conservative principles to alleviating problems.
he is a republican and really seems to take this stuff seriously. to getly says we have economic activity going again and if you create growth, it brings people in from the workforce, another thing important for him. he wants to increase workforce participation. >> great to see you as always. is in focus.ing we will hear from colorado next and coming up at 4:30 eastern time, goldberg joins us from the forum. this is bloomberg. ♪
starting with crude oil, oil rising. nymex closing of $43 $.43. coffee as well, 152 .80. cold weather and kenya causing supply chain questions. we are also looking at silver futures gain of 2% at 19.24. david: gold seeing the biggest gain in almost two weeks as traitors pullback on further declines for meeting with federal -- federal deserve -- federal reserve later this week. >> thank you very much. i am joined i the president of
barrick gold corporation. the largest gold miner in the world. thank you for making time for bloomberg today. this time last year you were leak.g with a different you have another leak at the same mine. what is the latest in terms of the mind suspension? >> a little bit different. it fell and intersected a pipe carrying solution. so the positive news is it did not leave the site with no impact to the environment or any of the workers. the area has already been remediated. we have a work program underway.
up diversion channels. we hope that will take place over the next week, following which the government will have an inspection. mine will be up and operating within the next you weeks? >> that sounds about right. that will be the government decision. they will go back and make sure they are comfortable. at this point we do not expect any material impact. >> it has been a much more mining friendly regime. what do you make of the decision to suspend the mine, given the fact that you said it is so much smaller than last year. the environment and support has been very strong. as we are fixing the situation at the site.
>> very strong support. >> john thorton last week in an there is made it clear ready to make acquisitions of the right one comes along. i wanted to ask you how comfortable you are with the company buying something, given how hard you of work to get your debt under control. >> we do not consider this necessarily mutually exclusive. we continue to work hard. the chairman comments regarding m&a center around we have worked hard to in bed cost structure. if we can see in another company's portfolio and asset where we feel strongly to define our cost structure to it, that is something that could be interesting for us. we should not acquire something simply for production.
that is not what you expect. >> can you hate your target of billionthat down to $5 in three years and acquire more assets if gold prices stay where they are? >> prices have taken a step back . we did that and made sure it was very clear that was the first cap, not the last step. the end of the second quarter we were about halfway there. billionbe at 1.2 5 dollars. wear comfortable this year. we have not put a timeline .round that we will retire the debt sooner. >> i think you gave me an estimate in an interview, and it was around three years.
the question is, could you buy and still meet it? >> if we were to do in acquisition, certainly we will .e very patient the higher likelihood we do that with stocks and debt. biggest driver for gold in recent weeks has been this regulation about what the fed is .oing to do what is your opinion? >> the speculation around rate hikes will continue in the recent future. there is that volatility. in the near term we think gold prices look favorable.
>> checking on the headlines with bloomberg first word news. mark crumpton has that from the newsroom. >> the man wanted in connection with the bombing in new york and new jersey is in custody. arrested following a shoot out with police in linden, new jersey. two officers were wounded but not believed to have been seriously hurt. authorities say he was found sleeping in the doorway of a bar this morning. an officer who went to investigate reportedly recognize him who pulled a gun and shot the officer who was wearing a bullet-proof vest. he was taken to university norwalk.in norfolk -- a pipe bomb also ask floated saturday in seaside park, new to a schedule parade for marines and soldiers.
the trainloded at station in elizabeth, new jersey, sunday night as a bomb quad robot tried to disarm it. no injuries were reported. president obama says the investigation into the weekend bombings is moving rapidly. to ads they are not linked the stabbing at a mall in minnesota. lex at this point we see no connection between that incident and what happened in new york and new jersey. our attention there is on the people injured. we feel very grateful no one lost their life. >> none of the injured suffered life-threatening wounds. state claimed responsibility for the attack. the united states says it is end the to ask the troop in syria despite
declaration that the troops is over. john kerry says human military and aid deliveries are picking up, and that the agreement needs more time. secretary kerry brokered the accord in geneva this month. new jersey governor chris christie knew his top allies were involved in a plan to tie up traffic near the george washington bridge to punish a local mayor who did not act the reelection. that is according to federal prosecutors who begin laying out the case against formal -- former aides, both facing federal charges in connection with the 2013 decision. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. gopro: still ahead, unveils a fleet of new products, including a drone. ♪
vonnie: for bloomberg quick take. background on issues of interest. myanmar is in that -- midst of a transition to democracy. been four years since myanmar began opening to the outside world. here is the situation. the party took control of two houses of parliament back in february with enough votes to decide the next president. the children are u.k. citizens. that gave the military key post in the government. the longtime confident assumes the office in april. she holds a lot of power because
she recently visited the white president barack obama said he would lift sanctions on myanmar. burma emerge from british rule after world war ii and fell directly into conflict. in 19 40 seven. 1962 triggered half a century of military rule. two years after vicious we suppress democratize protest, shows with a already one and a landslide. she was put under house arrest britain much of the next 20 years. in 2011 a new civilian government announced political reform.omic comingnce the out
president unveiled his plan. skeptics say the generals are unlikely to give up rather influence, and at the same time anti-muslim bigotry is deeply entrenched. more on the bloomberg. that is your global business report. >> wounded in in custody after a shootout with the least in linden, new jersey, a suspect in the bombings in manhattan and new jersey. , alex quinn with the latest on how donald trump and hillary clinton have reacted. quickly commented on what happened in manhattan over the weekend. trump says police are hampered from doing their jobs
by fears they will be accused of profiling muslim suspects. >> where is he getting his >> that is arom? great question. i think that is a gut reaction. hillary clinton said trump's remarks are used for recruiting by terrorist groups. a line that has raised an eyebrow. >> stepping back here looking at this more broadly, how big of a concern is national security when you look at the issues that are compelling people to get involved in the campaign? >> the economy is in -- on the top of most lists i have seen but terrorism is up there. there is indication people trust donald trump a little bit more than hillary clinton. if you can handle this attack, politically benefit
today. hoping for a turnaround with shares down 14% this year. >> thank you. a lot of announcements today. i want to start with the drone. everyone has been hotly anticipating this. drone gettings into things like mapping or other things businesses may want footage?ond capturing >> absolutely. i think one of the things it is known for is the versatility. the same phenomenon that has so benefited the sales of cameras will benefit karma and that his customers buying and using products to accomplish things we have not even dreamt of. >> talk to me about some of foresee.es that you >> consumers will have a blast using karma to capture their lives in a whole new way, whether it is ariel that it or handheld footage or footage mounted to the body while they are skiing, people will be able to capitalize their lives that
they are only used to seeing in .elevision i think we are entering a new era of hype already toomer generated content. emmyss have already one for their contribution to the television industry. we ask that karma to dramatically improve the quality that they are able to capture with gopro. i think that karma is so capable and versatile, whether you are capturing aerial footage, handheld footage or mounting it to a vehicle or a bike or a piece of equipment. i think we will see people using karma to study shock absorbers in the automotive industry so they can watch what they are doing while a car is driving down the road.
i think across the board will be used for 10 of interesting applications. >> >> what is the expectation for sales? >> time will tell. think that karma has a sweet spot with existing gopro customers. 20 million gopro's have sold since the introduction of the first hd in 2009, and karma is compatible with euro for customers. we think we have a terrific installed user base that will get a lot of functionality and use, but we also think it can expand professional capture, both in film and production and industry as well. .> there have been concern how is this impacting your input -- expectations in the session? >> the truth is, the consumer rate of purchasing gopro from walmart, youret,
local surf shop and bike shop, the rate that people are buying it has never been better. when people say demand is waning and market is saturating -- market is saturating, we do not see that in the business. these are people buying these products that are two years old. the fact that the camera can now upload photographs and videos to the cloud. incredible image elicitation built in, there are so many thinkonal benefits, we they will only by hero five that much more for only. so we are feeling really good about it. >> we are seeing new phones that shoot four k video and water resistant. the thought make you worry about more cannibalization? >> no, because video resolution is
important, but it is a tech spec. what a consumer is really act thinkingy are really about the shorey -- the story they can share. gopro is now and to end storytelling solution. gopro now and enables people to automatically upload those moments to the cloud so they can access them on the phone and quickly create is tory that they can share. no pro-is not just a camera story anymore or storytelling solutions company. >> there was a lot of buzz as a media company during the ipo. is that still your strategy or are you pulling back on that? >> division -- they vision remains the same. gopro really is a brand by the
people for the people, and we think prospects and entertainment are directly linked to that. when we do our job, our primary vision of helping people capture and share great stories, which i think we unveiled today, the results of that is the customers capture and share so much more compelling stories at greater volumes. the vision remains the same. gopro is often talked about as a potential acquisition targets. that google may be interested, apple and sony. is this something you have given to? >> not a lot. if there was an opportunity that dramatically accelerated the vision and realize gopro on a massively larger scale, that maybe something interesting.
we are doing such a great job of executing, we can put -- we are very excited about this as a standalone company. >> how do you think about ip in general -- i.t. and general? >> it is extremely important. it is a really robust program. we are filing more and more patents every year. as we look toward the future and recognize how important it will heavily, anded very proud about the momentum we are making. solutions. quest software has been a big kink for gopro. you are unveiling this service today. what else are you doing to address that? >> can you ask question again? >> i wanted to talk about software. i wonder what you are doing to address that.
>> we have done it. dramatically improved leadership of the software teams and built out teams capable of really think the vision we have for software. that is helping people make and or secondsutes versus ours. there trying to eliminate desktop computers from the editing equation. realizing customers want to capture the experience and then edit it on their phone and move on with their lives. as you saw today, the fact that they can auto offload to the cloud and have a quick sd card reader for phones that lets you move your content over phone really quick. and then produce really compelling video. it is something we are really proud of. i do not think software will be problem going forward.
>> do you see future applications and capturing life footage of basketball or football games? seems like it could be a huge opportunity. how big could that opportunity actually arewe enabling some of the most exciting live perspectives in because of hero cast, a live broadcast solution that attaches to a hero camera and perspectives from an athlete's helmet or chest while they are in skiing competition or what have you. so it is enabling that today. it is terrific for the brand.
vonnie: live from bloomberg headquarters in new york. covering stories at a san francisco, chicago, dublin, and tokyo. it's been an up-and-down day on markets, giving up gains. will the bank of japan make a surprise announcement this week? wells fargo ceo faces congress .omorrow, allegations that retail news banking executives have the least. marketead over to the guru. it julie hyman.