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tv   Bloomberg Markets Americas  Bloomberg  November 10, 2016 12:00pm-3:31pm EST

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from the bloomberg world headquarters in new york, from washington to johannesburg, here is what we are looking at. stocks pulled back. investors worry the postelection rally have may have gone too far, too fast. and larry summers shares his advice for donald trump. rallyinge shift from to governing. and helping the federal reserve by increasing debt and spending. there halfway through trading session. let's go to julie hyman. the dow did rally. it did touch an intraday record. at the s&p and nasdaq are languishing here. the nasdaq getting pulled down by technology which we will get
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to any moment. but i wanted to point out, for perspective sake, the three-day look at the futures. this was voting day. we saw the big plunge overnight. once the results were clear. a plunge of 107 points. and then we rallied back up around 20 on the day and now we are coming off a little bit as we looks through the s&p 500. the 127 point climb from the low to the high. an incredible swing over the last couple of days. what is taking us down now is technology. the nasdaq has a proxy. now down by more than 2%. and even though this looks like a short catalyst driven movement downwards, we are not hearing from traders that there was anything in particular that triggered the selloff. no capitalizing event. what if you look at the large-cap technology shares, some of those pulling down the s&p the most, you will see that
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we see significant aligns -- significant declines. 3%.e off microsoft off by the same amount. some of what appears to be going on is concern over potential trade wars with china, for example. havehe effect that could on these companies businesses. it also appears to be weighing on alibaba. ironically a day that is singles day. alibaba.sales day for the huge company, 90% of people in china are expected to be shopping online during singles day which began at 11:00 a.m., on 11/11. which it is in china. so there are concerns over china and what kind of economic relationship and trade relationship this will have with the u.s. under trumps administration. and the other big move which is
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worth emphasizing again today, today,to beat it again the year yield. a 23 basis point move right now and at one point it was a 26 point basis move over the two day, the biggest two day move ever. and to remind you, this is the same thing we saw yesterday which is the idea that under a trump administration there will be increased stimulus and we may see an increase in inflation as well. so the 10 year yield is at 2.08%. vonnie: that was julie hyman. now, let's check in with courtney donohoe. >> actually, it's me. donald trump is now at the white house to discuss the transition. during said harsh things the campaign but obama said americans should hope for donald trump success.
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meet with paul ryan and mitch mcconnell. teamd trump's transition has a preliminary list of potential cabinet members which include familiar names. the list obtained by buzzfeed carson, chrisben christie, mike huckabee and newt gingrich. jeff sessions and rudy giuliani. secretary of state include gingrich and i'll corker. sessions is being considered for secretary of defense. south africa's parliament is to making a motion to remove the president. the head of the country has been facing a series of scandals, including possible government corruption. the ruling african national congress party which has a majority says it will not support the opposition motion. the man accused of setting off bombs in new jersey and new york are before a manhattan judge on federal terrorism charges.
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he did not enter a plea. plead not previously guilty in new jersey to charges related with a shootout with police officers, he is accused of detonating a pipe in new jersey and planting two pressure cooker bombs in new york city. one designated in manhattan's chelsea neighborhood which injured 30 people. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. i am mark crumpton, in david? david: thank you. uncertainty abounds about what the economy will look like under president donald trump. he says his plan believed to economic growth up to 4%. our next guest, michelle meyer, just revised her gdp growth plan. she joins us from her office here in new york. i talk about uncertainty.
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donald trump is certain we will see a growth of 4%-5%. walk us through your forecast? we have near-term and medium-term impacts with a change of policy. our gut reaction was, faced with the change and uncertainty of president-elect trump, that it is risk off in the markets but clearly that has not happened. it has been the exact opposite. so we do have to stay nimble here. off, ourit was risk view is that it would be weaker for economic growth. be that and to financial conditions behave favorably and we have a rally in the stock market, if generally everything is taken as a positive then, you know, i think there may be his upside to the near-term. as we think about the medium-term, policies become a lot more relevant. vonnie: yes.
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, and thene forecast we will move on? michelle: sure. for economic growth next year, we think we will see somewhere close to 2% growth. becomesink what interesting is what happens around the trajectory or attentional for acceleration. and that is where the policies that could potentially be implemented really matter. so will we see the administration move towards fiscal stimulus? lower taxes? infrastructure spending? it could be supportive of growth. or will we see a move towards , whichs that exasperate would be a negative? so there are many different paths that are out there. and we will have to wait and see for at actually gets implemented. david: a huge part of that is what happens in congress.
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having a republican house and senate does break gridlock. that, what about policies that a been hard to get through? michelle: that is important. time ofthrough a gridlock tension with fights around passing budget. a lot of policies and nominations were hard to get through. and now we no longer have gridlock. we will be able to see policies. passing a budget without noise in washington, it helps to support confidence. and perhaps it helps to support business investment? so that certainly could be a more positive story for the medium-term. vonnie: will be here whether or not they increase in december? michelle: so for the december call, i think what the fed has told us is that we are equal
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based off the data. based off financial conditions up until the election. clear for them to hike in december. so unless something changes more negatively, so we have further financial conditions or higher uncertainty, i think the fed does have a difficult decision to make. so our gut reaction is that the fed would look to delay. if financial conditions become more favorable than they could go in december. david: among policy members, there must be an impulse to wait. fed be inclined to wait and see what effect it has on the economy? yes, i think that will impact the trajectory next year. i think the december call is much more about the data we have seen thus far.
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and about how conditions are behave during this week. and there is unctainty with that. year, thek into next policies become really important. thatwe see policies support economic activity? will we see policies that support inflation? that will dictate the pass. but until we know what the think there, i tendency will be to be cautious in the near term. vonnie: do more jobs get created under donald trump's presidency? michelle: in a stimulus program, one thing that comes is that there will be more job creation. so we could see that pickup. we have more investment in capital and we also have investment in labor. whichhink it depends on one of the scenarios plays out
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in an environment where the focus is on stimulus and it is not on trade or immigration. sure, that would be a more supportive environment for job creation. but at this point, it is hard to gauge which policy will be a priority. david: your colleagues at pimco were saying that we would see inflation rise quickly and there will be a need for the fed to raise rates. square what they are saying with your forecast? in terms of rate increases? michelle: i think on inflation, one of the consequences of these , it could trick the labor force and certainly, that is what stimulus could do. but all of that comes together to suggest a high structure for inflation. so i think as you look ahead into the end of next year, it could be a story of inflation. responding toe
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that provided that inflation move off is promoted by real growth. david: dallas michelle meyer joining us from her office in new york. coming up, donald trump meets president obama at the white house. after years of tension between the two, we discuss the transition to a trump administration. a live picture there of the white house. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." president obama is meeting with president-elect donald trump. meeting after a tense election cycle. steven yaccino joins us here now in new york.
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give us a sense of donald trump's day? there is the meeting in the white house. he then will move to capitol hill and will meet with paul ryan? right.that's and he will meet with mitch mcconnell as well. i think symbolically, the meeting with president obama is the most important thing of all. their bodyey say and language, that is something we will be watching closely. but most important are the capitol hill meetings. because donald trump has not governed before. we don't know how he will approach this. and i think paul ryan and mitch mcconnell are going to be feeling him out for how much latitude he will give them to shape the republican agenda in the years to come. and so we will be watching what they say out of that and i'm sure we will hear things even if it is in public. annie: will there be
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particular power struggle here? or will donald trump feel pressure to get into a power struggle? steve: that is one of the biggest questions we are facing. will he be more like chairman of the united states where he makes the executive decision and overseas things but let's the legislature do their own thing and the grunt work? or will he be hands-on and micromanage? in the campaign, there were parts he was fine letting other people handle but there were other parts of the campaign that he was very hands-on. maybe it will be a mix of both? i'm not sure that we know what kind of presidenhe will be so that is what we will be watching for in the body language and statements. david: what he will be at what he will do. what do we expect from him and those working with him in the coming days? there are two parts to
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that -- the first is the transition team. we will see some of the first names, official picks for his administration next week sometime. we expect. already, it names are being floated. names we have heard before. people involved in his campaign. a are being floated. christie,ani, chris trump son-in-law, reince priebus -- people like that. none of these are confirmed but again, these are reports that these names are being considered. as for the legislative, donald trump had a number of proposals, maybe not as detailed as he would have liked. things thatay out he will do, reverse executive orders, which will have an effect on a lot of things. and then of course, there is the
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obamacare will appeal which would take corporation in the house and senate. and it is unclear exactly how will go alongrs with that. but a deadly is something he campaigned on. vonnie: we should mention that joe biden is meeting with mike pence, as well. one key political trick to keep in mind. no matter what is staying in public, if you keep your eye on the political staffers and the faces they make and their body language, you get a better idea of how these people are feeling. yesterday, donald trump offered a conciliatory tone -- his staff were not happy. and that is probably a better read on barack obama's mood. thank you. that was steven yaccino there. we are looking at a live picture of the white house. president obama is meeting with trump inside and we continue to wait for them to emerge from the white house. this is bloomberg. ♪
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david: this is "bloomberg markets. " vonnie: one of the key parts of donald trump is tax reform. what tax reform will entail? reformsnk there are tax that could make an important contribution to our economy if the reforms primarily constitute reductions in tax burdens for high income americans. think they are unlikely to make a substantial contribution increasing our prosperity. i don't think the blueprint he laid out during the campaign is a promising starting point.
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for discussions of tax reform. although i do certainly the presidential thinking has evolved as a reality of governing, as it came as to them. but indiscriminate and large-scale tax cutting of the kind that was contained in his campaign plan, which would open up staggering opportunities for tax sheltering, do i believe that would be inconsistent with economic interest. david westin: i want to talk to you about trade. donald trump talked about this frequently. put yourself back in your old job in the white house as the chief economic advisor. are there things donald trump can do -- because he has a lot of authority on trade -- thinks he could do to help the u.s. economy in dealing with china and mexico? larry: there certainly are abuses in other countries that
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can be pursued, aggressively, within the remedies that are contained in u.s. trade law, and i think there is a bipartisan consensus in favor of that. environment,t naming china a currency manipulator on day one is a ludicrous proposal. in the current environment, repealing nafta or revoking nafta would do enormous economic us.ge to at -- to ironically, the consequence of candidate trumps rhetoric already, seeking to destabilize and challenge mexico, has led to a substantial depreciation of the mexican peso, which subsidizes every export from mexico to the united states by 10%. and represents a 10 percent
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extra cost on every u.s. export to mexico. so the consequence of what the dissident elect rhetoric has done to the peso has, in all likelihood, dwarfed in terms of hurting trade flows, any whatevergain from trade policy adjustments he contemplates. not to mention, what i think would be the enormously damaging concept of building a wall. jonathan: the federal reserve has talked about how policy options are asymmetric. takentition has also been that the federal reserve should sit on their hands and do nothing because they will struggle to respond to downside shocks. with this being our new political backdrop, how does the fed manage that? i will leave it to the
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federal reserve to indicate its intentions. my view for substantial time has in policythe risks are more to the downside than , in are to the upside time when inflation expectations in still as reflected markets, well below 2%. the federal reserve preferred price index. i have not seen the case for a rate increase. that was former u.s. treasury secretary larry summers speaking this morning. as we know, obama is meeting with donald trump at the white house. this is a face to face meeting questioningof trump the ability of the first black u.s. president. they have been in there for a while. roughly an hour. we did frog test -- we didn't broadcast earlier when the plane landed. michelle obama is
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speaking with mrs. trump. and then they will go and have lunch with paul ryan. after that, the senate majority leader, they will meet with mitch mcconnell. there, we will begin to see the shape of the legislative willa that the republicans craft and that donald trump will endorse. there are a huge amount of policy questions that remain about where the ministration will place priorities. continue toill monitor everything in washington, d.c. and around the globe. this is bloomberg. ♪ wow, x1 has netflix?
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♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. david: live from the world headquarters, i am david gura. vonnie: let's start with
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headlines on the bloomberg first word news. mark crumpton has more. donald trump transition team has launched a twitter website. it isis a notice that looking to fill 4000 slots with appointees but doesn't have instructions on how to apply. rudy giuliani says president obama should not pardon hillary clinton for her use of a private e-mail server while secretary of state. -- former new york city mail should leaveys we it to the system we believe in. on wednesday, the white house refused to rule out the pardon. donald trump's victory could give theresa may more leverage in brexit talks. she can argue that britain's military strength and security
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capability may be needed more by the european union. u.s. has cast doubt on the commitment to nato. a manhunt is underway in seattle for a gunman who shot and wounded five people outside a 7-eleven. police say following an argument last night, a person walked away but then fired a gun into a crowd near a bus stop. say all fivecials are improving. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: all right. thank you. let's take a quick look at where we stand with the stocks. the dow is regaining some gains from earlier in the day. turned back into positive territory. index isq composite still down 1.8%. telecoms and tech stocks are dragging down the s&p today.
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let's go to abigail doolittle for a look into earnings and movers. abigail: it is lunchtime so let's start off with shake shack. shares are sharply higher. on pace for the best day in more than a year after the company put up a better than expected third-quarter. and they do expect the positive trend to continue. 2017.xpect an increase in soda stream up nicely after they put up a huge third quarter. they made $.69 per share. 100 and 87% better than what they were looking for. they do expect that strength to continue. the earning strength extends over to the retail space. we have macy's trading higher. kohl's is up the most since early august, as is macy's. kohl's up a strong third quarter. $.80 per share, $.10
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better than consensus estimates. and they also reaffirmed a full year view and increase the share buyback so lots of good stuff there. macy's, interestingly, higher despite a huge earnings miss. what investors do like here is the fact that the company has created strategic alliances with work field asset management to create a pre-development plan for real estate assets. this is something investors have wanted to see for some time so we do have stocks higher today. that into the bloomberg, we take see a, and we do different story. this is the five-year chart. the white is the consumer discretionary space. a beautiful uptrend. kohl's and macy's in awkward and purple are down towards the bottom. so there is a big divergence. our team reached out to see how the divergence might close and in the year term, -- says she
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expects it to rise but inventory control but in the long-term, she thinks that the consumer discretionary space could drop on headwinds. so give and take on both sides there in the retail space. vonnie: thank you. that is abigail doolittle. david: janet yellen's term expires in january 2018 and it is unclear if donald trump would a lecture for a second term. narayana kocherlakota waited on the fed's future earlier today on "bloomberg daybreak colleagues.ith our talked about the short-term and medium-term effects of a donald trump presidency. i think the short-term effect on the fed is that, i think the new administration, there will be uncertainty around what policies and a prioritizing. i think if they prioritize the new vision towards trade
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agreements, i think it will create a lot of uncertainty for the global economy. policy makers will be nervous about removing accommodation in the taste of that kind of uncertainty. so i think the election of donald trump is going to be another reason, a reason to the print about raising rates. if i was on the committee i would not be favoring a rate increase in december, given those uncertainties. seem to bemarkets going the other way. right? the yield has gone up. the w rrp function has gone up. the markets are disagreeing on the short-term effect. i agree. we have to wait and see how the fed reacts. how they react to the level of uncertainty that has been created. just to be clear. when you are a monetary policy maker, you don't go by the
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markets. you go by what is best for the economy. if there is uncertainty for employment created by donald trump policies, they have to take that on board. jonathan: what kind of problems could we experience down the road? there has been a discussion about the handoff from fiscal policy -- from monetary policy to fiscal policy. if we don't make the handoff at the right time then you can't gauge what is coming down the pipes. don't you set monetary policy the wrong way? i think you always face tremendous uncertainty when making monetary policy. you do the best you can given that. i think the broader vision that trump offered in his acceptance infrastructureve investment in the united states is definitely positive for the u.s. economy.
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and positive for the federal reserve. because i think it will make it easier for the fed to achieve the employment inflation targets without worrying about running into the effect of lower bound on interest rates. jonathan: let's talk about something not helpful for the fed, some of the comments on the campaign trail targeted the fed chair, janet yellen. the idea that maybe she would not be removed but certainly wouldn't get a second term. how damaging is that campaign trail rhetoric on the federal reserve from where you are sitting? personally, i felt it was completely appropriate. and we talk all the time about the president and what kind of supreme court justices they will point, and they will free to express views on that. but it is very important for the american public to know what kind of federal reserve chair a new president or candidate for president would appoint.
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trump was clear about that. on thet agree with him specifics. i think janet yellen is doing a great job. -- but it is good for him to alert the public. david: i want to get back to the medium-term. you think that, actually president-elect donald trump could make it easier for thfed to raise, going out? not in december but going out? yes.ana: because what happens if you end up doing a massive infrastructure expansion, that will put upward pressure on prices and employment and on the -- and if you are borrowing a lot for that -- of the pressure on the rate of interest. oft is basically the net inflation rate of interest that is consistent with that goals. a lot of work has been going on to document and estimate that
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and there has been a big decline in that. which is why there is one of the main reasons that we see that central banks have got there target interest rates and so low. on for structure investment a big scale is going to put upward pressure on that rate of interest and allow central banks here and abroad to be able to hit their targets with higher rates of interest. and i think the main benefit for the fed is that it means that they will have more ammunition to cut rates and a won't have to immediately turn to unconventional monetary possibly if there is a shock. david: it is clear that he has persuaded markets that there will be inflation. but you can have inflation without growth. how concerned should they be about stagflation? narayana: i think the central bank, through its tools, has a lot of capability to dampen inflationary risk.
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fed, as longat the as it is allowed to retain its independence of action, it does have a lot of tools at its disposal. i think the big problem for the u.s. over the last six or seven years has not been inflation. frankly. i don't see anything towards that. it has been subdued growth. and i think we have policies in place at the federal level that in still more growth. that is just a win for both the american economy and the fed. narayanahat was kocherlakota. up, we look at the men in the financial world who backed donald trump. this is bloomberg. ♪
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david: this is "bloomberg market" and we are looking at a live picture of the white house. donald trump meeting has just concluded. longer thand much expected. 1.5 hours. vonnie: even more. they have not left the white house yet. or donald trump hasn't left. a shot ofwe have their meeting. or at least part of the meeting? david: yes, the president with the president-elect. delivering brief comments. trump saying they discussed a lot of things. meetingaracterizing the as excellent.
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trump making the trip to washington, d.c. today. president obama: many of the issues that the country faces. it isbelieve that important for all of us, regardless of party and political preferences to now come together, work together, and deal with the challenges we face. and in the meantime, michelle has had a chance to brief the incoming first lady. had an excellent conversation with her as well. and we want to make sure they feel welcome as they prepare to make this transition. and most of all, i want to emphasize to you that this now aret-elect, that we
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going to want to do everything to help you succeed. >> thank you very much. this was a meeting that was going to last for 10-15 minutes. and we have been getting to know each other. we had never met each other. -- thegreat respect meeting lasted for an hour and a half. and it could have gone on for a lot longer. different a lot of situations. some wonderful and some that are tough. toery much look forward dealing with the president in the future, including counsel. he explained some of the difficulties. and some of the great things that have been achieved. so it was a great honor meeting with you.
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and we look forward to meeting with you many more times. obama: thank you everybody we are not taking questions. thank you. david: that was the president and the president-elect in the office. a 10 minute meeting that extended more than an hour and a half. steven yaccino joins us. vonnie: i want to say how phenomenal of a picture that is. given what has gone on over the last number of years. president obama sitting next to each other and saying they look forward to working with the president and speaking of counsel in the future. david: the first time these two have met. it wasn't that long ago that donald trump made a campaign spectacle out of his announcement that he now believes the president was born in america. and a legitimate president. that was just a month ago?
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two months ago? the fact that they are sitting and having this meeting at all and sitting in front of each other, having this kind of discourse is really stunning. it makes you think for a second, how did we get here? that is the question everybody is asking. that it is worth noting the top own with which obama is conducting himself. vonnie: very businesslike. happening.s is he called the discussions between the first lady and the other first lady a briefing which i thought was interesting. him to sayfor something like if donald trump succeeds, then the country succeeds. it says something to the thousands of people who are protesting. ofre have been a lot emotions involved on both sides. and you see the president really seeing his role now as a person who is trying to calm that, a little bit. ease the tension. quite vocallye
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and also by just sitting there, physically, that look, face the facts. donald trump is president. david: vonnie quinn talked about meeting.esslike talk more about the statement from the white house talking about how the transition began early? there is a transition council and a rhythm and a regulatory process. steve: donald trump and mike price -- mike pence are getting the full presidential briefing. there is nothing now that president obama will learn that donald trump and mike pence won't. that is scaling up and we will start to see the handing off of the baton today. it will continue in the next few days which includes staff the staff white
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house was walking with donald trump aids today, talking, presumably, about many things. vonnie: obviously he ran as a republican and was elected as a republican but he has changed affiliations several times over the years and he talked there about seeking counsel from president obama in the future. is there anything to suggest that his cabinet should be made up of all gop? ofve: the past tradition giving a past president council is a long process and a civil process. barack obama experience that when he took over from george w. bush. so he plans to continue that as well. goes, as the cabinet donald trump doesn't go the republican party anything. vonnie: could put anyone anywhere. steve: he really could. and he knows a lot of people who cross the partisan divide. and so i think that will be something we are watching closely. time, he at the same
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will want to put people in who will do hisddin bi of sorts. and so where he feels like he appointmost latitude to people that he trusts but also, people that won't cause headaches for him, that is the narrow lane in which i think he will operate. the timetable for this, generally? we don't know that much about his policies or plans. we want to get names sooner rather than later. looking at history, how quickly does the president name members of the council? steve: i think we will begin to hear names next week. then, through the holidays does pose some convocations and problems. i think we will hear about some of them before thanksgiving but we will be done hearing about of december.nd and that leaves january, really, for everyone to get settled in
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and on generate 20th, really take over with command in charge. yaccino, thank you for joining us. we were looking at footage of the current president meeting with president-elect donald trump in the office. it will become donald trump's office in a matter of months. barack obama characterize that meeting as "an excellent meeting." was supposed to last 10 minutes but it ended up longer than one point five hours. coming up, a closer look at who might comprise donald trump's cabinet. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." carl icahn, steve nugent and tom barrick -- people who
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back to donald trump when the establishment did not. what is next for them under the ministration? max abelson joined us now. i remember steve nugent had aspirations to be treasury secretary. is that in the works? max: that was just a few months ago. and we wrote that story and it honestly feels like a year ago. i think it came out around august. vonnie: you work that hard. [laughter] max: the whole point of that story is that this guy was making a long shot. friends of his said he didn't know what he was thinking. but it sure looks like it could pay off. i don't know if you was really will be treasury secretary. -- at a gathering in the hamptons said that he would make for a good treasury secretary so maybe it will happen? vonnie: who wants jobs in the administration? out of all the people, who would want a job as a treasury
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secretary? max: it is so funny. even the people who were around clinton, the wall street guys around clinton, who have known her for years, and you know how badly they would love a job, even in the days before the election they were very coy about it. they were like -- well, of course, it would be hard, i don't know if i want to do it. so similarly, somebody like anthony's carlucci, he said it would be like leaving my local bodega. it would be hard for me to leave for washington but, you know, i think he might have put in a word about how he was interested. these guys are coy. and shout out to cnbc who reported in the last hour that jamie dimon is reportedly a name that donald trump's advisers are talking about. is a great of mentioning. a time when names are floated. they see what it is. that makes it
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more than a game, just bringing up names, a fact that donald read thesepeople executives. he complained about wall street constantly. i think that is one of the reasons people felt love with him. he identified as criminalistics global lead and he told people that they were stealing from him but the truth of the matter is, you might choose some of those members to join is the ministration. vonnie: and holding game. david: max abelson, thank you so much. vonnie: coming up, postelection with jonathan krinsky. this is bloomberg. ♪ . .
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david: it's 1 p.m. in new york in 2 a.m. in hong kong. i'm david gura. vonnie: i'm vonnie quinn. welcome to bloomberg markets.
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from bloomberg world headquarters in new york, we are covering stories from san toronto, london and seoul. stocks rising for a second straight day after donald trump pasta tree, the dow trading era to all-time high. how long can we run it up? facebook shares falling for a second day. we will look at how the end of the election cycle is weighing on the social media giant. donald trump's energy policy calls for lifting restrictions on oil and rolling back restrictions on powerplant emissions. we are halfway into the trading session. julie hyman is here with the latest. another rally depending on where you look.
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dows&p 500 and dow, the trading at an intraday enclosing record, but the nasdaq is lagging and the s&p has been bouncing between gains and losses as investors and traders continue to try to ascertain what are going to be the ripple effects of a trump presidency. i want to focus on technology specifically because here is where we have seen the rollover. the nasdaq 100 down by 1.6%, really seeing a lag there. a real lag in the fang stocks -- facebook, amazon, netflix and google. tagged that looks at a basket of these stocks, so when you see the line falling, that means they are underperforming the s&p and they had been outperforming in august, september, and october. they have not only been falling
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on an absolute racist but relative to the s&p 500 overall. another phenomenon we have been watching is the steepening of the yield curve. what you have is the current yield curve on the top. you are going all the way out from a one-month treasury build to the 30 year bond, so we see this steepening. the other lines are one week ago and one month ago. the incredible gap that we have seen within the treasury market on the prospects now of a trump presidency. theas implications for municipal bond markets. past fewee over the days that it has fallen by more than 1%. we've money natalie coming out of the treasury market at the minutes will bond market as well.
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thehould have gotten results of a 30 year bond auction in the past you moments. tick up in the yield and i'm looking at some of the numbers. , it looks bed here like it's a bit of an increase. 2.40 7% was the october yield. the bottom line, we are seeing less demand for treasuries in a donald trump kind of world. we saw this reflected an option of 10-year note's yesterday. be continuing to watch this phenomenon and one referendum on what a trump administration looks like. get check on the bloomberg first word news with mark crumpton in our newsroom. president obama described his oval office meeting with
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president-elect donald trump as excellent. mr. trump noted the two men had never met and added th he very much looks forward to meeting again in the future and seeking mr. obama's council. the meeting, which was scheduled to that -- to go 10 minutes when nearly an hour and a half to discuss the transition and other matters. mike and vice president pence will have lunch with paul ryan and meet with mitch mcconnell at the capital. selected ken blackwell to lead his domestic transition team. his role on the team appeared on an organizational chart obtained by the associated press. the ohio republican is on the boards of the national rifle association and the club for growth and is a senior fellow at the family research council. british police say the driver of a tram that derailed in london has been released on bail. seven people were killed. the 42-year-old man was arrested
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after the crash on suspicion of manslaughter. tram came off the rails while rounding a tight curve yesterday. more than 50 people were wounded. iraqi troops have slowed their advance while they regroup and hang onto areas regained from islamic state. kurdish fighters are holding the north while iraqi troops approach from the south. flights have been reduced because of the risk to civilians trapped in their homes. global news way four hours a day powered by more than 2600 journalists and analysts in over 100 countries. this is bloomberg. vonnie: u.s. stocks today near records and bond tumbling. our next guest says follow tale -- says volatile trading shows the focus of staying on the long-term.
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thank you for joining us. how can you stay focused on the longer term when you have no idea what sectors will do well? guest: i think we have some idea of what trump's priorities will be. the market is anticipating a fiscal spending on infrastructure and defense, possibly some tax cuts as well as less regulation. that is why you see a steepening hashe yield curve and that implications for how investors should be positioned within equity markets. the broader point is we don't think the election really changes the outlook for the u.s. economy in a germanic fashion. valuations are reasonable, a little high but nothing alarming, and that is what is likely to power further market gains.
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that is what i would say would be the long-term perspective. say towhat do you someone who is shocked at the way the market has whipsawed? what should he or see -- he or she read into that? the near-term reaction to the news was a little bit of risk off. then when trump actually spoke publicly, we saw somebody who focused more on some of the positive aspects of his campaign, some of the things that will get the economy growing faster, and i think the market is focused on that. part of the question is going to be where does trump places priorities? is it going to be on bringing the country together and working withnd desmond people as possible or focusing on some of the more negative aspects of his campaign? so far, he has been more focused on things that would be beneficial to growth and moving the economy forward. manye: there are so
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combinations and unknowns right now. the money flowing out of utilities, for example because we see higher bond yields, so there's no longer a need for a bond proxy. does that continue? will be driven by interest rates and there's a good chance from will pursue and execute on some of the policies he has laid out. and thatcture spending should mean more growth for the u.s. economy in the short term and that probably means interest rates are going to stay higher than they were at the very low levels in the summer. so yes, it is negative for some of those bond proxies because they did look expensive, but it is positive for other parts of the economy and that is where we are seeing the shifts in the last couple of days. you look at the potential for infrastructure spending. he has talked an awful lot about trade.
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when you look at new tariffs on mexico o china, that could have a substantial effect on the u.s. economy. ?ow do you factor that in how does that complicate your forecast? and i it is complicated don't think we are going to draw a straight line from this market reaction to have markets behave over the next three to six months. i think markets and investors will be watching closely to see how trump they were ties is some of his campaign rhetoric and where do those trade issues fall on the pecking order and are they the same and does he govern differently than how he campaign? there are certainly some risks out there and i think one of them is trade, but so far, that does not have -- does not seem
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to have been a high priority. granted, we have not heard a lot from the president. david: bloomberg news is reporting a rush to end limits on wall street pay by january. this is not out of the ordinary when you have a transition, but this is part of the dodd frank act that would limit financial industry bonuses. regulators are pushing that through him and trying to push january,ugh before before the transition to power to donald trump. how much stays the same and how much changes? guest: that's a difficult question. i think you will see some push by the current administration to get in place as much as they can before they hand over power. some of the things will probably be reversed under a trump administration. see more ofle to
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these last-minute changes. i would not expect anything very sweeping that would have a the economyact on or society at large, but that is typical to see administration's try to run up their business before they hand over power. what kind of question keeps coming up from your clients? question isnk the is is knee-jerk reaction we have seen so far, is this the way markets are going to behave over the next exit to 12 months? tonkly, it's a little early make that assessment. we will have to see who trump appoints into some of the key positions in his cabinet, how he works with republicans in congress, and those are some of the questions that are unknown at this point and until we get some of those answers, then we will have a better understanding of how to be positioned. vonnie: thank you.
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just to recap the breaking news. we see the obama administration tried to expedite rules to limit financial services industry bonuses. they are trying to get that through before january when the balance of power shifts. and the senate become controlled by republicans and donald trump because president of the united states. this is bloomberg. ♪
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vonnie: breaking news -- some headlines from the richmond fed president who will be an alternate voter. uses the case for raising rates is relatively strong. inflation is pretty close to our
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2% target. he talked about 60,000 jobs keeping up with the u.s. population growth. he talked about fed independence making for utter monetary policy and he also mentioned low productivity means rates need to be lower. the case for raising rates relatively strong. david: donald trump may have won a residency, but there was another big winner -- facebook and a fitted big-time from the presidential election. with the election over, how will facebook and other companies that soaked up 70 political dollars keep up? cory johnson joins us from san francisco. how similar is this story to it we have heard about major cable news networks? these have been good months or years in part because of the campaign. there are certainly some
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similarly's there. i don't know about your facebook page, but i know that on mine, there were a couple of political ads. the last few weeks or months have been taken over by commentary about the election. mark zuckerberg commented about the saying people created billions of posts about the election. guess what? that stops this week. that volume of the conversation stops. facebook talks about the things driving their business, they talk about the ad load and the shift to mobile and the rising ad rates, but they also talk about how many posts are going up and regardless of where you stood in this election, when you look at the way they have been able to grow that, the company warning that the are not going to see kind of growth they have seen lately and the wind in their sales last few quarters has been this election and the heated
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commentary about it on the facebook page, that ends this week. vonnie: 44% of their people are getting their news from facebook. that is a fairly biased view. but facebook is down today. what do you think social media will become under a trump presidency? cory: if the presidency is half as colorful as the campaign, there will be lots to talk about. but the big spending -- let's not forget all the local propositions, state propositions and amendments going on across the country, all the local candidates who could target advertising on facebook, that all goes away. in this political season, we saw much less spending for political ads than had been expected. a big part of this was because the just did not spend of the democrats did not have to respond in the same way,
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so you saw a handful of traditional media companies really suffer. i was truck by the results from gray television, networks in the south came out with earnings vastly disappointing. was down 50%, really disastrous results and flat out said the lack of spending on political advertising caught them by surprise and hurt their business. every four years ounce they have felt for decades did not happen and hurt their business. i think we can expect the exact same kind of thing from facebook. this matters to everyone watching who could care less about facebook or politics -- 25% of the gains on the s&p 500 were all the gains in one stock -- facebook. 500acebook falters, the s&p falters. if the s&p 500 falters, all of the market be dragged down by this lack of advertising that
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was helping facebook results. facebook ande twitter going to deal with the heat of the political rhetoric dished out on those platforms question mark some journalists withdrew from twitter because of how hot it had become. looking ahead to the next midterm or next presidential election, are we going to see a more friendly environment for political discourse than we saw this last one? would be the last two try to protect a friendly environment, particularly coming off of this election. it is fundamental to the personal views of mark zuckerberg and sheryl sandberg that there be a lot of discussion. i think mark zuckerberg holds this notion about what privacy exposehow people should their beliefs and share their thoughts and do that in a form that is facebook. but there's a conversation beginning about the role that
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facebook obscuration has. there is a terrific piece in the atlantic that pointed out a handful of guys in macedonia creating hundreds of posts about donald trump that were drawing lots of clicks. greatly to the benefit of them and greatly to the benefit of facebook, but that they have misleading and led to the tree all in the campaign. is silicon valley talking about peter thiel at all? is he going to play a role in the administration? cory: i don't know what his reaction is, but i think his reaction in the trump campaign has been talked about quite a bit, but we will see if he has any help as far as making their message more inclusive and reaching out to business people of all stripes. david: we will hear more from cory johnson when he's joined by carol massar. vonnie: we will hear from the
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energy minister of western europe's largest oil-producing nation, norway. this is bloomberg. ♪
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vonnie: we have breaking news from the trump transition team. on the website it says it will dismantle dodd-frank. this is coming out in last two minutes after president elect trump and president obama had more than an hour and a half on the meeting together but said the first thing on the new website is that the transition team will set out to dismantle dodd-frank. david: this is about three paragraphs that the trump campaign has released. a lot of the rhetoric reads like something you would have heard on the campaign trail, the trump transition team saying that they are dissatisfied with the state of financial regulation right now. noting here the financial
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services policy implementation team will begin working to dismantle the dodd frank act and replace it with new policies to encourage economic growth and job creation. laying out here their intention of dismantling this mammoth piece of legislation and not offering any specifics on how they intend to do that, nor are they offering any indication of who might be on that policy implementation team. the heelsestingly on of the news we broke here on bloomberg with the obama administration intending to push through some of these rules that are part and parcel with a. frank act -- with the dodd frank act. vonnie: have a look at the website but it looks like laying sayingand slowing down, dodd-frank will be dismantled. a look at how financials are faring.
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we have julie hyman at the markets desk. julie: we are looking at the major averages and lease will see similar patterns where we were earlier. if you want to look at the breakdown, you can look at the various groups, financials included, but i'm not sure we have that at the moment -- banks have been holding steady with more all day long because having to do with the yield curve widening. it was expected a trump administration would attempt to do some sort of dismantling of dodd-frank. that's not a surprise and banks have been reacting more to the yield curve and what thatdoes to their perceived profitability. averages holding steady in the wake of these headlines. again, financials had been climbing today and we will see if that holds on the
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news that one of the first things the trump administration will do is dismantle dodd-frank. the open question is there has been a similar sort of rhetoric about the affordable care act. donald trump saying on his campaign trail that he intends to rip out, take out -- we shall see, but sweeping rhetoric from the donald trump transition team without a lot of detail. as donald trump goes to capitol hill to meet with the speaker of the house, at the top of his agenda is to repeal the sprawling, as they put it, dodd-frank financial reform act. this is bloomberg. ♪
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vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. i'm david gura.
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let's get a check of the first word news this hour with mark crumpton in the newsroom. met withsident obama president-elect donald trump in the oval office a short time ago. the meeting, which was scheduled for 10 minutes, lasted nearly an hour and half. the to discuss the transition and other matters. >> i want to emphasize to you that as president-elect, we now are going to want to do everything we can to help you succeed because if you succeed, the country succeeds. mr. trump noted that the two men had never met and says he very much looks forward to meeting in the future and seeking mr. obama's council. the federal aviation administration has banned flights over mid-town and hatton where trump tower is located unti the president moved until the white house. they cite a vip movement as the reason for the no-fly zone. a man suspected of ambushing to
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pennsylvania police officers who responded to a to mistake dispute has been found dead along with a woman. please say the man died of a self-inflicted injury after shooting police officers, killing a seven-year veteran and wounding another. prosecutors in south korea have expanded their investigation of corruption linked to the president and have questioned current and former executives at some of the country's largest companies. a close friend of the president is accused of coursing big companies into donating companies -- donating funds to her organizations. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is crumpton, bloomberg. vonnie: the dow is at a record as stocks gained two days after a surprise donald trump when. arestors are assisting --
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assessing what a trump victory would look like. joining us is the mk them partners chief technician. is it enough time to establish any kind of trend in any market, and if so, what trend have you been seeing? trends thatlot of are coming out are trends that have been in place since the summer. if you go back to july 8, the employment report broke out, and somean inflection of the trends happening since then our extending those advances and declines. but it is nothing new that happened on tuesday. inid: the industrial sector the rhetoric coming to talk about a giant fiscal stimulus package that would be spent on infrastructure and all that would mean for construction, what are we seeing there? jonathan: that is a sector that had been demonstrating some leadership. was back int the
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2014 and one of the arguments have been that they have not been participating. but transports are outperforming and now they are breaking out on an absolute basis. that's now exacerbating the move, but it is nothing new. vonnie: let's look at one of the charts that you brought, high beta versus low volatility. explain what you are seeing. that's the energy, materials, some financials relative to low volatility stocks like consumer staples and utilities. bottomed around early july and now the inflection, the market did break out of it but .t is a consistent theme as of yesterday, has been
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exacerbated but it is an existing trend extending to the upside. vonnie: does it come to an end? how do you see these things? jonathan: you play what's working. extended onre bit the outside and some on the downside, so you may see a meaner version but it continues to favor industrials materials and you probably want to sell on rallies. lookingou have a chart at the financial sector and their us so much talk ahead of the election if donald trump were to win and become president that the banks would benefit greatly. look at this chart and tell us what you are seeing. breaking banks are above their highs. the yield curve is certainly helping that within the last few days but this is a sector that if you go back to january or february, nobody wanted to touch
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it and that has flipped to now there's more optimism and in the short-term, maybe we would not be chasing here but over the next text to 12 months, it is an area you probably have to be in. did not move too much, but gold futures have moved almost a hundred dollars in either direction. anything worth noting and the charts when it comes to gold or oil? are neutralld, we on it. within the materials sector, you see the steals -- the steel stock move to the upside. the stealth rally has been copper. i think it is up 14 days in a row. if you are going to choose between the two, which is a better risk on metal, i think the fact that copper is outperforming gold is a good day. gold is always going to have short-term fluctuations but it does not get us as excited as
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some of the other steel stocks. david: news breaking here about the trump transition team saying they are planning to do away with the dodd-frank act. there's a huge amount of uncertainty and when you are doing this kind of analysis, how big is that variable? jonathan: that's the dutiful thing about technicals. we take away the noise and look at the price action. if you look at what was working, it was financials, industrials and materials. the unknown was who's going to win but all you can do is go by what is. vonnie: what do you do when may see somes? we turmoil in emerging markets. does that upset your charting? jonathan: gaps are short-term in nature. that might have to get back but
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gaps don't usually change the primary trend. that has been working may have gassed up that the primary trend is what we try to focus on. david: let pull up one more chart looking at hotels and cruise lines. what does that tell you? jonathan: hotels and cruise liners are very cyclical. trend is starting to reverse itself, so some of these names that are suggestive of more cyclical parts of the economy are starting to emerge to the upside. similar to cruise liners, so we are constructive there. vonnie: thank you for joining us in the studio. david: canadian trade officials say they are not concerned about trump's talk about killing nafta. we will look at what they expect to happen in the trade deal, next. this is bloomberg. ♪
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david: this is bloomberg markets. i'm david gura. vonnie: i'm vonnie quinn. let's head over to julie hyman who has her chart of the day. the 30it has to do with year auction. the results of which were just made public at 1 p.m.. that auction drew 2.9% and that is the weakest since january. this is a chart looking not just at that measurement of the measures of demand. we ares a concern that not going to see as high a demand for treasuries under a trump presidency with the stimulus being planned by trump, so we have this 30 year auction
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and you see the purple line is a 2.9% yield. when you see the yield go up, it means there are fewer bidders and the demand is going down. that is one way to measure it. another weight is the blue line, which is the bid to cover ratio, the lowest since 2014. thosehe indirect bidders, are other government sent by u.s. treasuries as well as mutual funds. that's the lowest since august of 2015 if you look at the bars along the top. what we are learning is that this was a relatively weak auction. not quite as weak as the 10 year auction that should the weakest demand since 2009 but a measure of a drop in demand for treasuries. what we are seeing unfold in the market.
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another way we see this unfold is looking at the yield curve. this is something we have been hammering home over the past couple of days because it shows the same kind of phenomenon. we are not seeing the shorter end of the curve rise at the same pace as we see the longer and of the curve, which could be the perception that inflation is coming, so you see that steepening or widening of the yield curve. five to 30ng at the year spread which is the highest it has been since about february. we have really been trying to dig into the treasury market to suss out the various reactions and this 30 year auction gives us one insight into that demand. julie hyman, thank you. wonderful chart of the day. donald trump's victory and protectionist rhetoric drove some investors away from mexico, prompting warnings of tariffs and a slow growth, but it's
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being met with a shrug from canadian investors. they largely expect the status quo. our bloomberg can anchor joins us now with more. why the shrug? does he not believe trump when he says he's going to make extensive changes to nafta? that's right, and perhaps the inference that not all nafta partners are created each may be written in the answers that the parliamentary health reporter for bloomberg has pulled together from different trade experts in his story today. the idea that trump's pledges have largely targeted mexico, the wall, the full gamut of how it might target mexico rather than or at least absent has been canada in all of this. but just to lay out the groundwork -- 35 states in the
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u.s. count canada as their top export destination. so a trade war with canada could impact jobs in the states that are getting goods and services ready to come to canada as long as -- as well as other places. canada is also the largest wire of u.s. exports. any changes to nafta if they were aimed at mexico would undoubtedly affect canada. that's written into the script and you have a currency chart -- it has effected the canadian dollar which has weakened over the past 48 hours. the peso weakened much more. but take a look at the comparison. tomer canadian ambassador the united states just made the point that there's so much synergy in terms of jobs, one of the main things trump will not want to meddle with, that it would be more likely to see the status quo in terms of nafta when you dig into the details. there would probably not be too
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many changes. and said, we saw an 80 stocks concerned about this magnum, one of the massive auto-parts makers in canada. shares recovering after plummeting yesterday. before street products company also seeing shares recover after a plot. in theanada going opposite direction after donald trump saying perhaps he would bring back the specter of keystone xl. i'm curious about what we've gotten from the premised are on the election and what he has had to say about donald trump becoming president-elect in the u.s. .uest: he has been very careful he put some similarities between the two campaigns together when he congratulated mr. trump on twowhen thomas saying campaigns targeted very much at the middle class and in a way, a come-from-behind victory.
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justin trudeau has been careful not to comment on the likelihood of a trump victory one way or the other. time now for the bloomberg business flash and a look at the biggest stories in the news. shares of wells fargo coming -- climbing after donald trump's win. investors bet a trump presidency will mean less regulation and sideline critics like elizabeth war massachusetts. wells fargo is up 11% since trump's the great comet dust today rally in seven years. vonnie: deutsche bank is expecting mergers and acquisitions to pick up next year after a subdued 2016. the banks regional head says deals and ipos will add to accelerating debt sales. he says rising borrowing costs and slower growth will encourage
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private sector polarization and fundraising. says themes bullard election of donald trump has caught people by surprise but is not roiling markets excessively. he says it could break the gridlock in washington. he made his mark's today in st. louis. bombardier is reporting a narrower than expected loss. this is the maker of c-series jetliners. they have slowed the rate at which they have been burning through funds. they say higher operating cash the new models are driving the improvements. david: manhattan landlords are giving renters more financial incentives than ever. says leaset sweeteners like free rent or broker fees were offered on 24%
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of new rental agreement in october, a six year high, up from 10% when your earlier. that is the bloomberg business flash. coming up, don -- donald trump' victory -- why most of the media got it wrong and what it means going forward. this is bloomberg. ♪
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vonnie: we have breaking news at this hour -- donald trump is in washington dc. the president-elect is meeting with house speaker paul ryan. the vice also is president-elect, mike pence. this is all happening in washington d.c. right now. the president-elect met with the president. they both praise how the meeting went. when polls showed hillary
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clinton in the lead, donald trump's team knew better. joining me now is the bloomberg businessweek editor-in-chief. there are three covers for this week's issue. one featuring supporters of withd trump, the other hillary clinton supporters. the international issue is my favorite with the donald trump take on it. talk about how you put together this issue. any people caught by surprise based on the market productions of how this turned out. what did you want the issue to be? guest: we wanted to be looking forward. have two versions -- actually three versions of our coverage planned. clinton and, one of
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one if it was not determined. clinton was the most developed. one of the interesting questions was how hard is going to be for the next president to implement their policy and that is something we tried to answer throughout the 20 pages of coverage. --id: yeah great photo issue rate photo on the cover. i remember how these blended together in video form, but you captured the elation of hillary clinton's campaign headquarters and then you see everyone sitting down and the buoyancy of the room diminish. telling a story in photos is the way to grab the reader's attention. sort of reveals the emotional impact of the event. we had reporters at both the country parties and we saw the hillary supporters as they went from happy to very sad and we saw the unbelievable elation at the trump party and that is what
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we were going for. david: you mentioned how so many people were caught flat-footed. at the center of this issue is a piece looking at how pollsters, how people in the media, how the electorate got this wrong. what did they find? lucky enough to get inside the data operation of trump off team and what they found was not too long ago, the team thought they only had a 7.8 chance of winning. they worse apprised, but as the election came closer, they identified the people they thought were going to be the supporters and zeroed in on them and as they looked at those people, largely rural, largely white, they came to realize they had a shot and it helped them guide the path to 270 electoral votes. david: there is a continuum
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here. i think of the piece looking at donald trump has data apparatus showing it was larger and more sophisticated than many people would have thought. here, we see the fruits of that brought to bear. it was an unorthodox offshoot of his campaign, started in part by his son-in-law. very different from the usual politics. the economics editor of the issue, ever the optimist, looks at what this means for policy going forward. we have donald trump meeting with the current president, meeting with the speaker of the house. the question is what does policy look like under president trump? some of your writers try to tackle that question. guest: and it is a question we will continue to tackle. if you really look at what he has promised, will he have the money to do it given that he wants to cut taxes? that's a question that will loom
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over the beginning of the presidency. he is a flexible guy and he will probably dodge and weave, but that is one of the questions that will have to be answered. david: we had news breaking that the transition team plans to do away with dodd-frank entirely. they have talked about doing away with obamacare entirely. how much do we know at this point about where a president donald trump is headed? we know about his promises and what we do is in his own words, go through the list of his promises. he did not have a fully developed transition operation and he's getting it together now and they are releasing information as we speak. the issues,ook at some things he want to roll back will be easier to roll back than others. executive orders issued by president obama are easy to roll
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back, regulations are not as easy. david: how different was the selection in terms of the closeness or how you had to prepare for it? this one is different. he said he was not politics as usual and he was in and he certainly kept us on our toes. we were lucky enough to get inside the campaign a number of times and i think that help us understand him. david: it is a great issue. thank you very much. the latest copy of the magazine is on newsstands tomorrow and you can hear more from the magazine's reporters and sat -- reporters every saturday and sunday. on bloombergre markets. this is bloomberg. ♪
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test test
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>> welcome to "bloomberg markets."
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>> we're live in new york. recovering stories out of san washington, london and china. under waytion is president obama and president-elect trump met in the white house more than and hour and a half. meeting with congressional leadership on capitol hill. millions of americans got their the months leading up to the election on social media and facebook feed. the companieshow facing a huge role. results aheadng several retailers this week. we've got the u.s. stock market closing in two hours. heineman has been looking at the news. the industrial has been leading the way. the way.g that is not matched by the other
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average. we've seen bouncing around. the session was lower. the nasdaq still lagging down a third. as we still get investors trying to figure out what a trump presidency would mean. uncertainty about what it would mean. what he will be successful in pushing through in terms of his agenda. here's the s&p 500 over the course of the day. started out strong and fell to the session. 10:30 a.m.und climbed back in very stuttering fashion. towardsow coming back the high suggestion with more gain.alf a percent something that is very similar to yesterday, even if a trajectory of stocks say is not. is the volume and the s&p 500. we look at this yesterday, the top chart here is the volume the estimate and where it will track by session. day average. we're looking at trading volume dayhe s&p at double the 20
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average. just very heavy volume here. a lot of trading in today's session. people try to figure out what to do. one of the groups that's been weak throughout the day but really morning went on is technology and tech retail in particular. amazon.com 3.5%, netflix down 5%. a lot of speculation and trumpn about what a administration is going to mean. will there be repercussions for heavy donations that the industry made to hillary clinton. industry is total clinton contributions 114 times a trump contribution. s about willstion reckoning.be a we've been watching the u.s.
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dollars, which is having its best two day performance in june. since march.hest at the same time, we've been the bond market particularly the longer end of the curve. biggest two day increase in yield on the 30 year note, up 29 to 2009.ng back really quite a remarkable move incomes.xed >> thank you so much. let's get you check on the news headline. >> president-elect donald trump a 90resident obama held minute meeting. something that was understand unthinkable. but today, they set that aside unity andt of cooperation. >> we discussed a lot of situations. some wonderful and some difficulties. >> mr. trump noted that the two had never met and added that
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he very much looks forward to meeting again in the future and seeking mr. obama's counsel. and vice president elect mike pence held lunch with speaker paul ryan and will be senate majority leader mitch mcconnell. former democratic presidential candidate bernie sanders says it it was an embarrassment that millions of white working class voters decided to vote for donald trump. the associated press it was a lack of enthusiasm among democrats and not come out to vote. vermont senator isn't ruling out in 2020.hite house run saying four years is a long time from now. the u.n.up official -- united foodns officials said the in aleppo will run out. the last time the people trappedded in received any thearian aid was a beginning of july. global news 24 hours a day
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powered by more than 26 and analyst this is bloomberg. >> thank you so much. in globalen a u-turn markets since donald trump presidential victory. tumbling 10%, the rally. hold stock -- of course, to notert just put out a titled making volatility great again. let's talk about what is being priced into not just equities but to all risky assets. a good question. there are two ways we've seen the market priced in. massive fiscal expansion potentially in late 2017 and 2018. we haven't had any decisive plans how that will take place, priced in is the kind
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volatility of s&p. we have considerably greater uncertainty about that outcome. as monetary and fiscal policy. is?hy do you think that candidate trump said what president trump will put in place. matter of only information we have is what has been said. we really have not at least current cycle, seen a situation where a regime has shifted so dramaticking. we're under pricing the for more volatility and economic data. range outcomes as far as inflation and growth. especially given that we're so far in economic cycle. we really 19 anything like -- we really never seen anything like that. interestingly, we had this rotation before. before the election, there has massive out flow in
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stables, healthcare and defensive bond. there has been inflow in financials. what's happen so far, that move has been exe i cans aer baited. >> you got the financials the way. volatility.k to vo you saying it should be higher. in the near term, in december, meeting does fed that mean it will be a nonevent? >> i thought it was really surprising. the overnight session right day, we sawection the january fed fund neutrally on the expectations that potentially the fed wouldn't hike. now those expectations settled chance.80% there's limited risk premium around that event. smoothly.ect it to go the real key is the emerging markets. if they remain calm, we have a of rather calm s&p realized volatility. have no way to gauge what
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could happen. we talking about china mexican peso? the keyhe peso has been the trading instrument. i would say to really follow the poll numbers for trump versus clinton. now that it's over, we seen a significant sell off. oft's surprising to me, some markets in asia well relatively latin america. outside of mexico, some of the latin american economies should fair well. iron-oils a large export as part of its exports. engages in fiscal stimulus that economy should be boosting. >> it's tied to inflation, trump's policies will be
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inflationary. the defense will be forced to be more hawkish. >> exactly. that's the key risk. especially when there are two vacant seat on the fed board of governors. really, looking at the composition of potential people, morehard to find someone -- >> 2015 has proven to be a year of political surprise. you had brexit and this week's .lections would a defeat in the italian referendum count as a surprise? probably oneis is of the most under priced events in the u.s. event, it's very rich. it's not rich over the euro and other major industries that could be linked. this defeat this could lead to further political eu.out in the it's realy -- it's known because of the fact that polls
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the noually showing that vote is leading. i think people are still feeling and trying to digest the u.s. election. >> what point will we start to betting pick up ahead of that event? moves finallyctor played out. we've seen massive dispersion. we've seen positioning completely unwind. once that has finally set in, maybe early next week, we can up.a potential pick the italian referendum is on december 4th. the u.k. supreme court appeal of decision is december 5th through december 8th. a number of events. i think that might be a nonevent. might positiont around it. some up a potential for tick involved. given the way the market was, it.e seen the most of >> thank you so much.
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stewart. coming up, we'll continue to stock of the biggest winners and losers as the markets continue to digest this donald trump win. this is "bloomberg markets."
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>> doctor you -- there you see president-elect donald trump his wife. the vice president elected. they have concluded their meeting with paul ryan. you post on headlines generated from that meeting. towant to head over bloomberg julie heineman looking
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at good and drug companies. >> they are doing in different directions. chart.the two day it's down by nearly 4%. concerns thatns been discussing are weighing on some of these consumer staples companies. take a look at the individual movers. all fall sharply. we talked about tech and how holding back the nasdaq holding back. certainly consumer staples are part of the equation. moving on to drugs, they're going in a different direction. the speculation we've been discussing that trump asinistration would not be tough as a clinton administration would have been pricing.sue of drug here's some of the pharmaceutical stocks a we've watching. morgan stanley to the rights of the royalty stream
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of its multisclerosis treatment. the activist investor that's the putting pressure on company. health and pfizer are seeing big gains. there's speculation about drug pricing about whether th affordable care act will be repealed and what kind of effect that will have. the nasdaq biotech index is having its best two days since 2002. >> good stuff. thank you so much. let's get you now to bloomberg business. u.s. regulators are rushing to issue sweeping limits on wall street pay before president-elect donald trump is in.n the rule on finance bonuses is major unfinished piece dodd frank act. dismantle it. energy transfer -- it is betting
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trump's victory will pave the way for army core of engineers. energy transfer is battle over pipeline construction over the u.s. $3.8 billion pipeline is a rallying cry and faces stiff from native americans. flashs our business update. still ahead, the outcome of the u.s. election already pumping companieshing by the it. shaped more how twitter and facebook dealing with their role in donald trump's surprise victory. this is bloomberg.
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>> this is "bloomberg markets." major shake up at twitter questions a lot of for the company. for more let's go over to radio.ues in >> thank you very much. twitter making big changes. carol masser here with us.
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with big changes of twitter twitter. what's thestor whodam bain was the person built the ad strategy at twitter an expected to now revenue.ion in he's been instrumental to telling stories to madison av gnaw. he can only do so much if growing.ser base is that's been the big issue they've had. their audience is -- they can't convince advertisers to more. so bain is moving on. noto who is one of the technology,'s in impactve this strategic on the company. he's pretty much responsible for twitter's live video strategy.
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he's the one that did their deal with nfl this year. to streamed them thursday night football games, which sort of propelled their other potential partners they have a deal with bloomberg, for example as well as a lot of other sports organizations, news and buzz feed. you saw on election night. noto is the one who has .een championing that strategy which has been the most twitter hashing done. that strategy has propelled product. sense they would elevate him in the coo role. >> what does it mean? the c orb o --o coo role. back in september they were shopping the company around.
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makes a difference in noto taking over the operating role at twitter? is it still a company trying to or something else? >> they have to find a new cfo. right, they went through a sales process that didn't work out. aey were shopped around for little bit to disney, to sales force, to google, all three of entities hired bankers to think about making a bid and doing it. up now twitter in this space of -- >> he's a former banker and former goldman sachs guy. the company,ell that was maybe one of his main jobs, it seems it could get bumped up. >> he's been more interested in twitter heic side of has been in the financial side future. media mogul.e a
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i don't think we'll back to banking. wants to be -- he want to be the best future ceo of disney. that's all rumor and speculation from people who know him. his personality is very of fun rilinglot people up. getting people pumped about the future of the company. cfoesquenot really a job. process. that sale he was partially to blame there. a company that has a lot of issues right now. an interesting background he was with goldman sachs, internet analyst during the bubble. on, became cfo of the nfl, became a banker at goldman sachs and end up in this
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job. it's also interesting to see adam bain, a one thing that at,ter has been successful you can argue partnerships but also getting more and more per user, higher rates for their advertising. all adam bain. popular.ery not just in walltreet. he was among the names that were floated to be twitter's next ceo last year. remember during the search that ended him coming into and doing job. bain was one of the people who was considered for that. elevated to ceo as a result of that search. he actually has been influential. >> twitter down 3.4% so far in today's session. how do we -- is it more turmoil moving stuffer around. is this a way to make more
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stability? have the full support of dorsey? read what'snvestors is happening here? >> i don't think we can call stability. i think the company -- just a weeks ago -- >> consistency. >> the company couple of weeks ago actually had to do layoffs workforce. those layoffs were concentrated in the sales and marketing side of the business. a lot of people who works for adam bain were shown the door and they reorganized that whole department. i think it's going to be for the department to feel the security of the future beenut the person that has guiding them through their whole history. right, anthony noto he's become so influential. this futureg vision. >> not a shocker.
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bloomberg news. >> great conversation corey speaking with sarah frier in 46. san francisco.in the meantime, u caught up on how stocks are trading now. to thosech holding on gains in case of nasdaq, holding declines. we've seen the big names like facebook, amazon, netflix and slump.all down more than 2.5%. and thee industrials financials lead the dow industrials higher up by 259 points. the s&p gaining 10 points. looking ahead to the close, keeping eye on disney. thes reporting anniversary close -- earnings after the close.
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focus is on espn performance. for disney is expected to come in $13.5 billion. unchanged from the same time a year ago. tonings are expected to fall $1.16 from $1.20. bloombergy on technology, david west din will ceoitting down with disney bob eiger and what happens next at espn. in the meantime, coming up, the commodities close, copper seen biggest gain in two days. more than five years. have more contacts on that move. this is bloomberg.
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>> from bloomberg world headquarters in new york this is "bloomberg markets." in new york.sing let's check on the movers with
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abigail. >> it is a tale of two stories. industrial metals here. here looking at big gains, aluminum and silver. winning streak since march of 2015. is now up 14 days in a row. its record longest streak. on pace for a 19% gain this year in the best year since 2010. copper.trength in aluminum higher and silver industrial metal used beyond jewelry and electronics. move,aybe behind this goldman is explaining this a trump andmove behind revamp of u.s. infrastructure. copper is the real star. the bloomberg, we you a look at g hashtag, see copper absolutely spiking blue, just recently in that is the bloomberg commodity index.
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tremendous outperformance in copper. turning to a metal that is fairing, gold is trading lower the day. off lower but still lower. this as the ten year yield is in a record way. adding more than 30 bases points. bloomberg dollar index up sharply. it could be that strength in the aroundplus uncertainty the path ahead for the fed that the tremendous accommodation be removed that's hurting gold today. when we go into the bloomberg look at gold btv, 40, 79. we see a longer term chart of go hold just again movinglow the 200 average. suggesting that investors really caught by surprise. bullishness there. now that is leaving. when this happened in the past, to very big declines. there could be a losing streak ahead for gold.
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out for.ing to look let's get you check on the bloomberg news. >> thank you. president obama described oval meeting with president-elect donald trump excellent. the two mented never met. he looks forward it meeting the future. white house press secretary josh achieved.s asked was >> i feel confident in telling that it may not resolve all differences. they didn't try to resolve differences. what they sought to do was to an the foundation for effective transition from the obama presidency to the trump presidency. >> the meeting originally lasteded for 10 minutes yearly hour and a half. donald trump come up names of cabinet members. the list obtained by buzz feed
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carson, chris ben , mike huckabee and newt gingrich. for secretary of state include gingrich and tennessee senator bob corker. beingr sessions is considered for secretary of defense former illinois congressman is by a federald grand jury. his attorney called the expected a misuse of prosecutorial pore. a 35-year-old republican has been under investigation after spending scandal. lastsigned from the house year. british police say the driver of a tram that derailed in london on bail.release seven people were killed in that accident. 42-year-old man was not been publicly named was arrested crash on suspicion of manslaughter. the tram came off the rails
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while rounding a tight curve in south london yesterday. more than 50 people injured. >> thank you so much. the election, retail stocks are focus this week. macy's posting another quarter of declining sales. shares are higher. after the company announced a new real estate play. macy's is hiring brookfield asset management. brookfield will have right for two years to create a development plan. stores and land that macy's owns most of which shopping centers. is john chen. let's talk about more this real
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partnership that has with brookfield. retail,s happening in establishment is also getting shaken up in retail. macy's needs to think about stores it should close, which stores it should repurpose. amazon is the big story. revolution retail, less people going to stores and store traffic. a lot of value here that can be unlocked in creative ways. that macy's opting to by piecemeal? there's really unique complexity and determining exactly what's best for each space. in terms of maximizing return of investment capital, seems like a to bring a partner. really go piecemeal just to get the maximum value. lot of the properties will be repurposed. going to be complicated. there wasn't a one size fit all
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strategy. of a possible respin-off gone? >> i think we're going to see partnership goes. i think anything is on the table. this is a disciplined management team. that thinks carefully about decisions to be made. coming into this week, everybody out about retail. not awesome down three. >> speaking of the comps, there's a one year chart of macy's. it struggled. if you come inside bloomberg, you can see the same store sales including third party. the white line. patterns thenal trend line is down. it's pretty clear that's the case. been bouncing around. that seasonal pattern. doing better at least to come in better than
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expect spotsve seen some bright in apparel. the story for retail is bricks plus clicks. seemless shopping. fashion.ows can deliver. returning instore, buying online and pick up in store and shipped store.e the issue of our generation is amazon. retail.aking over we think amazon will be the number one apparel seller in 2017. lot of people buy apparel from amazon. decline, it'sat a not cyclical. this is structural. macy'se leaders that with pull? >> it's really about a the wholetion of retail experience. think about what people want to do. they want to eat out and have fun. want to integrate services stores. macy's really has to offer you convenience, they have to offer experience. they have to offer you merchandise that really wows you. that is something you can't log
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on to get online. city -- macy's to deliver. consumer have power. it's changing so rapidly. we have to make shopping fun again. we have to bring product that is thrilling. what does that mean? great apparel selection. it means we wish handbags were doing better. it's a lot of thought within each category. not seeing everybody tide.t from a rising >> if that's the case, compare is doingast how macy's against kohl's. >> kohl's did better than feared. they're managing inventory titlely. time. getting right they are a little bit different. a different customer. macy's has international tourist. them are having unique problems. people just aren't in love with
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physically.stores they're finding online to be so easy. they're both soul searching. the establishment and retail is transforming. it's being shaken. the consumer, it's good thing the election is over because we really need consumers to be happy. be focused on holiday shopping season. you so much oliver chen. busydent obama has had a day. he met with donald trump earlier. now he's meeting with the nba champions the cleveland cavaliers. lebron james and the cavs won sports title for the city in nearly 70 years. there's a photo they've taken together. you can catch the event live on at live go.
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>> this is "bloomberg markets." the markets.wn to we were talking about retail. you're looking at some the retail names that are going to be announcing in the days to come. >> in the xrt, it is doing quite today. partly on the strength some of the stocks you were talking about. byy's and kohl's it is up 3%. seeing suppliers some of these department stores. some of their merchandise that heavy -- fossil group is up 10%. phb betting a boost. as for the companies that are going to be reporting, we're in those shares. j.c. penney will be reporting of training.ening
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all of them getting a lift along stores thatartment have already reported. has a couple of tech retailers within it. tradings in the xrt and sharply lower. netflix as well and priceline.com. advance isof the mortars.ore bricks and >> it is time now for the bloomberg business flash. look at some of the biggest business stories. trump presidency may offer fewer regulations and lower taxes. his signature campaign pledge to immigrants.umented
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they worried that the move puts a squeeze on expensive labor pool. the new that aministration should devise guest worker program. linged in -- linked in maybe russia. the site could be blocked as early as next week. regulatori-trust opened a case against microsoft which is in the process of a $26 million acquisition of linkedin. that is our business flash. let's get back to politics. president obama came face to president-elect donald trump today. in a meeting that lasted more than 90 minutes. you,want to emphasize to we nowsident-elect, that are going to want to do can to help you
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succeed. if you succeed, then the country succeed. >> we discussed a lot of different situations. some wonderful and some difficulties. >> bloomberg politics reporter join us more. what's interesting, donald trump also said that he thought that meeting would last 10 to 15 minutes. it went on for 90 minutes. we don't have idea what they discussed. what did you gather from the discussions surrounding this meeting? imagery toascinating see president obama and donald trump two men who have been friends.but who have been anything but on the same page. these are the two most different can imagine in politics. i think you heard trump there had some nicehey things to talk about. trump has been a gracious to the president in victory has he has been to hillary clinton. the president has said he's do everything he can to
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ensure a smooth transition. he promised before the election won.dless of who i think those are the nice about.that they talked trump mentioned there were some not so nice things as well. that they have to discuss. these are the many things that they disagree with. the radically different thection that donald trump, president-elect is expected to take the country in. repeal thefrom affordable care act, the president signature piece of legislation, undoing executive action on immigration and climate change. we'll see massive changes in obama's legacy now hangs in the balance. >> it's fascinating what the two chose not to say when they did give their comments. interestingat was as well. this was much anticipated this meeting. the cameras did not catch donald headed into the white house. they did not take any questions. think this might indicate about president trump how president trump might
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allow the press to document chronicle how he rules? a great question. donald trump has broken pretty tradition ofrm and politics in the campaign. he was rewarded by the voters it. a man who got this far, got all is way to the white house not going to feel bound by them. there's no indication from the going tothat they're yet, at least, no public indication that they're going to change how the press operates in terms of the and access they get. it's pretty common for reporters questions in oval like that and the president not to answer. trump were yelling a bunch of questions. i don't know that we're seeing any public indication so far trump going to change that aspect of it. it's very early and lot of people have questions. trump ran pretty simply
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the most anti-media presidential in ourn that any of us lifetime have seen. he called he all sort of nasty most a media are the dishonest people in the world. he proposed libel news to make easier to sue news organizations. >> absolutely. asryone keeping an eye on well. breitbart has a seat in the room.house briefing sahil kapur thank you so much us from washington d.c. coming up, how will a donald trump presidency impact the fed janet yellen. narayana kocherlakota give us his take. this is bloomberg.
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>> this is "bloomberg markets."
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federal reserve chair janet oflen term ends in january 2018. it's unclear if president-elect donald trump will nominate her term.second former minneapolis fed narayana kochelakota weighed in on the future today. he's economic professor at the university of rochester about short term of donald trump presidency. >> we'll have to wait and see fed reacts to, i think, uncertainty that's created by a trump election. clear, when monetary policymaker, you're not going by the markets. you're going by what's best the economy. if there's uncertain by inflation and unemployment, the be taking that on bard. >> what kind of problems can we experience? center of many stories last 24 hours discussion about monetary policy
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to fiscal policy. don't make that handoff at the right time and can't gauge what's coming down pipe, you set monetary policy the wrong way? >> i think that you're facing tremendous uncertainty making monetary policy. the best you can. broader visione a president-elect trump offered his acceptance speech a very massive infrastructure states.nt in the united it's positive for the u.s. economy and positive for the federal reserve. theill make it easier for fed to achieve employment targets. >> let's talk about something for's probably not helpful the fed and not helpful for the fed chair. some of the comments on the targeted the fed chair janet yellen. the idea that maybe she would be
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removed but certainly wouldn't get a second term. thatamaging is some of campaign trail rhetoric from sitting? >> i think personally, i felt completely appropriate. it's a -- we talk all the time presidents, what kind of supreme court justices they'reappoint and pretty free to express their views on that. it's very important for the to know whatic kind of federal reserve chair a president, candidate for president will appoint. mr. trump was very clear about that. i didn't agree with him on the specifics. i think that chair yellen is job. a great i think it's good for him to tort the american public that. >> i interrupted you. yourt to get back to bloomberg piece about the median term.
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you think president-elect donald it much easiere out.he fed going >> yes. because what happens if you end a massive infrastructure expansion, that's upward pressure on employment and on -- if you're borrowing a lot for upwardou'll be putting pressure what economies call interest. it's the rather rate of interest net of inflation rate of interest consistent with the fed's goals. lot of work has been going on to document and estimate that there's been a big decline. one of the main reasons we see banks got their target, interest rates pinned so low. infrastructure investment, at a big scale, will put upward pressure on natural rear
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interest. hit their targets with higher rates of interest. i think the main thing for the means they're going to have more ammunition to cut rate. >> it's pretty clear, president-elect trump persuaded markets there's inflation coming down the pike. you can have inflation without growth. how concerned should the central bankers be about that , stagflagtion? >> i think the central bank a lot ofts tool, has capability to dampen risks.onary i think the fed as long as it's retain independence of action, it has a lot of tools that dispose. the big problem for the u.s. last six or seven years has not been inflation.
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that.t see any signs of it's been subdued growth. if we have policies in place the level that instill more growth, that's just a win for both the american economy and the fed. minneapolisformer fed president narayana kochelakota. we got more coming up. you can see that equities to build on gains. at least in the s&p and dow. nasdaq under pressure here but a little bit less than earlier on. andgot some facebook ifzon, netflix, google, ail -- alphabet lower. this is bloomberg.
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♪ we are lie from bloomberg world headquarters in new york for the next hour where we are covering stories in houston, washington, and london. john chen to bloomberg in an exclusive interview. on its way back or is the dominant smartphone maker facing the last stand? up last eight years is now in the air. it u.s. regulators are rushing to issue sweeping limits on wall street pay by january. in the bottom of the hour, we with the ceo of conoco phillips. at donaldt a look trump's energy vision and where he thinks crude oil is headed. one hour from the close of trading. julie hyman is here with the latest and industrials left. it is interesting how the
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trends from yesterday have been sustained in today's session including a look at the financials and industrials on speculation of infrastructure spending under a trump administration. you can see that one thing is different from today. the nasdaq is lower by technology shares. the dow is look like it will touch an intraday record as well and heavy volume. about double the 20 day and 30 day averages. let's give the individual groups. the banks are sorting. it wells fargo has recouped all of the losses since it was revealed that there were fraudulent accounts set up by wells fargo employees. percent gain today. it jpmorgan shares at a record up by 5%. bank of america and citigroup participating in this rally we are seeing as the yield curve widens. technology is under pressure today. oldave this new economy
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economy split that has been occurring the last couple of days. hand, old on one school and construction companies. new tack on the other hand. alphabet.crosoft, and folks that work at these companies were heavy donators to hillary clinton's campaign. there are questions about what this will mean for the industry under a trump administration. and utility stocks were down today, in many cases, more sharply. a chart ibring back looked at earlier today to further illustrate that. this is 2677. utilities selling off the white line as the s&p 500 goes higher. the bottom is the utility sector spider etf. we have seen out from that etf. as rates go higher, you get a little bit of dividend
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competition. to lehighll it dividend yields. -- investors at this stage say a trump administration will not be friendly to that industry. a quick check on the 30 year note he cousin is a remarkable move. 31 basis points. it just keeps extending. 2.93% the new yield on that 30 year note. a pretty stunning move there for treasuries. we will continue to keep an eye on that. julie, thank you so much. bloomberga check on first world news. mark crumpton has more. mark: president obama described his meeting with president-elect donald trump as "excellent." the two men had never met and he says he looks forward to meeting again and seeking mr. obama's council.
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,he president-elect, his wife and mike pence also had lunch with house speaker paul ryan on capitol hill. the former presidential candidate bernie sanders says it is "an embarrassment that millions of white, working-class voters went for donald trump." was a lack of enthusiasm among democrats and people didn't come out to vote. notvermont senator is ruling out another white house run in 2020 saying that for years is a long time from now. carterpresident jimmy says donald trump needs support and prayers from the american people as he prepares to take office. president carter has spoken with mr. trump and hillary clinton. he also joked that he understands how both of them feel. election and76 lost his 1980 reelection bid. sign-ups for obamacare top
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$100,000 the day after the election. in most single day sign-up since enrollment began on november 1. president-elect trump has promised to repeal the signature legislation achievement. a united nations official says the last food rations inside eastern aleppo in will run out by next week. 200 50,000 people trapped inside of the city and they haven't received any humanitarian aid since the beginning of july. news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i'm markumpton -- crumpton. this is bloomberg. scarlet: leaders are reacting to what a trump residency might mean for their industries. emily chang sat down with an exquisite interview with inckberry chairman john chen california. she started by asking what a trump presidential win means for
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blackberry. john: i am an optimist so i think about it from the good side. the last feel about it is that it's reality. it happened. we need to make the best of it. trump. nobody knows what he's going to do next. pro-businesseally and small government, less regulatory -- i think it will actually be good. not only for the tech industry but for banking and many different industries. i would suggest it very much depends on who he taps for the people that surround him and support him. and i hope they are moderates. they: given so much of technology industry is built on immigrants and skill workers that come from other countries, how do you think president trump
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could impact the workforce? john: his positions are more deal driven. h-1b issueshy the is thateared congress everybody in washington wants to link this to legalize the illegal immigrant issues. it never got through the voting process. emily: trump said he would and the h-1b. h-1b. the john: i think it is impractical to end it. i think it would hurt the country. if he is a businessman, he would wouldhat ending h-1b literally heard across the board for all the tech industries. emily: president george w. bush appointed you to the president's export counsel. you advised him on china
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relations and spoke to congress about these issues. how do you think president trump will impact u.s. china relations? john: he indicated on his website that one of the top priorities is to declare china a currency manipulator. that's what he said. ok? no president had done that. democrats or republicans. it, it willly does really create a lot of tension. and i think the chinese and us will sit down and work those things out. it might be a better deal on both ends.
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they are opening and broadening the reach of the chinese market, for example. protective. it's a lot of different things. i think there might be an opportunity there. it is reality. he said he will end a number of free trade pacts, and in the extreme case, it could lead to a trade war. john: i don't think anybody is that dumb. but what a why no? -- but what do i know? and trade war in , it islized system
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absolutely devastating, to say the least. .e don't have any more weapons the ease of funds and all that. they are done. we have an inflationary mood. it is the worst time that could possibly happen. aside from his expert use of twitter, how to you think his election will impact the technology industry? think there will be a less regulator kind of mode. the big company that benefited from it is the democrat. you hear from people close to the administration. i think the big company
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advantage might be erased somewhat. a lot of these people have denounced him in the past. we shall see. i think it will impact cyber. emily: how so? john: one of the thing he is focused on is cyber security. he thinks about it like a warfare game. we think about it a little bit differently. i hope that he does spend a lot more attention and money and resources securing the system. many initiatives on the heels right now. a technology fund that is bipartisan and is not
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focusing on just maintenance, but new ideas. i think he -- i hope you can support those. scarlet: blackberry chairman john chen in an interview with emily chang. takeg up, donald trump's on wall street. the gutting of dodd-frank could be weeks away. this is bloomberg. ♪
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scarlet: this is bloomberg markets. it time for the bloomberg business flash. alibaba posted sales within the first five minutes of a single day shop-athon. it's an event that dwarfs cyber monday and black friday. they are monitoring to see if it
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will replicate last year's success. the dakota access pipeline, they are betting the trump victory will pave the way for any's in the army corps of engineers. in the battle over pipeline construction across the nation, the $3.8 billion pipeline is a rallying cry for the anti-fossil fuel movement and it faces stiff competition and opposition from native americans. metlife shares are higher today -- donald trump is said to favor less oversight of financial firms. trump's plan to boost the economy by ramping up spending a boon to insurers that are struggling with declining investments because of low rates. and that is your business flash update.
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we will stay with financials because the future of dodd-frank is now in doubt. transition team for trump said it will dismantle the controversial wall street law and replace it with policies that promote economic growth and jobs. president-elect trump has tapped paul atkins, a former fcc commissioner to help pick donald trump's financial leadership team. jessie, there is a lot to sit through here. it doesn't really adhere to conventional republican dogma. regulation, heti- says the banks are far too big to fail and brought up points about how glass-steagall should be repealed -- excuse me, reimposed. i understand your confusion because of a lot of president-elect trump's statements have been quite confusing. he says get rid of dodd-frank but says he does want to support
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legislation that would break up .assive megabanks right out of the gate, he put out a statement saying he will get rid of dodd-frank but it was very much colored and an way of being of presented. it is very confusing. a lot of moving parts and a lot of conflicting ideas. there does seem to be an agreement. the market perceives that it will lead to less regulation. some of the personalities we are seeing involved in the transition team is their persuasion. >> do we assume paul atkins might play a role and tap himself to make policy? aspaul atkins, who i know
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fcc commissioner during the bush administration, he is an ambitious guy. he was commissioner for a long time. very anti-regulation. he was once considered a force of nature. in rulemaking and n on bigis views know corporations. it is hard to believe there would not be some sort of role of paul atkins. scarlet: in your story, you write about trump's plans for financial regulation could be a proposal made earlier in the year by the house chairman. what can you tell us about that proposal? >> a big proponent of that proposal that wall street would love even though the chairman didn't cover it, it would scrap the volcker rule.
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the ban on banks proprietary trading, hated by wall street and viciously attacked by wall street. that is the fascinating part of all of this. ofre is sort of a buffet president-elect trump, things to choose from. he can pull elements from the bill that he likes. there's nothing about bringing back glass-steagall, and hard to say were that fits into all of this. scarlet: what are you hearing in terms of bank lobbyists, are you gearing up to get a lot of work done? because they are not sure where the administration would stand? >> there are a ton of issues to open up any time you bring this for debate.
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the lobbyists are cashing checks. banks the lobbyists to do this kind of work and any time you open up this legislation, there are opportunities to get things in, take things out. that is what lobbyists work for. scarlet: thank you for joining us from washington. today's trade is around one of the most popular etf's all around -- the most popular etf's around. this is bloomberg. ♪
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scarlet: this is bloomberg markets and time for options insight with julie hyman. today'soining me for options insight is manager at kkm financial and joining me out in chicago. dan, what an interesting couple of days. seen that big rally
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yesterday, sort of a mixed picture today. juliedan: it continues for a sed day here, and when you look at the likes of the big names. wells fargo seeing tremendous , options going to a longer response. options are being purchased .ramatically here julie: it has to do with what going on in the bond markets as well. people can buy options through ands attract bonds inflation. i imagine there would be quite a bit of activity on that front.
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if you look at the xl laugh , the banking sector, you see a lot of option activity there. run this benefited outcome. you are seeing a lot of repositioning here. julie: you see december call options being active. do people think that it is coming back? there's a sense that you made it through the initial impact. up on the day, even though the market is up. it probably got a little too cheap here. taking place early in december, the quarter calls.
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100,000 of those were purchased today. the volatility at some of these lower levels, it is reined in so dramatically. trade today is another manifestation of that, right? maybe we have run a little too far here. you are looking at a next you why put spread. xty me through the -- at an put spread. walk me through it. dan: i think we are hitting some resistance up here when you look at the spy. to the new year, interest rates at these levels, it kind of gets very straight what is going on. i'm looking at a put spread there. julie: the 14 207 put spread? dan: that is the 50 day moving average.
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it is back to the downside and we can see how fast this market can move. thisis why i'm looking at put spread. julie: interesting stuff. we appreciate your time. miss hiswhat did you next. the chairman of conoco phillips will be here and we will talk about donald trump's energy vision and where crude is headed. conoco phillips down today after a $3 billion share buyback program was announced at its investor meeting. this is bloomberg. ♪
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mark: time for bloomberg's first word news. resident elect donald trump and president obama held a nearly 90 minute oval office meeting,
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something once unthinkable given their tents and nasty back-and-forth over the years. a set that aside in the spirit of unity and cooperation. mr. trump: we discussed situations, some wonderful and some -- mark: mr. trump says he looks forward with meeting again and seeking mr. obama's counsel. donald trump's transition team has intensified potential cabinet members. a list obtained by buzzfeed news includes dr. critz -- dr. ben carson, chris christie, mike huckabee, and new gingrich -- newt gingrich. potential selections for secretary of state include gingrich and tennessee senator bob corker a. he is also considering defense secretary.

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